Curious Case of MMTC : Fall from 700 to 198 or may be 100

Question from nse2zoom to stockfundoo.com - Curious Case of MMTC: Fall from 700 to 198 or may be 100

Can u explain Curious Case of MMTC : Fall from 700 to 198 or may be 100.What to do in case if one buy at 700, can he do average at this price.I already know about 99% Govt. Holding. Also PSU Stake Sale news hitting all stocks .But Why?????

Answer :  Waiting for reply

Source : http://www.stockfundoo.com

Mindtree stock doubles in a year; will gains sustain?

Mindtree stock doubles in a year; will gains sustain?

The stock of Mindtree has nearly doubled over the past year following improved revenues and profits backed by better operating margins

The stock of MindtreeBSE 0.04 % has nearly doubled over the past year following improved revenues and profits backed by better operating margins. While the company's financial performance in the December 2012 quarter reflected a sustained business momentum, its current stock valuations appear to be fully discounting its growth prospects. This may limit the stock gains in the near term.

The stock has earned 90% return in the last 12 months and 30% in three months alone. The sharp increase in the market cap of the Bengaluru based mid-tier IT services player closely tracks the turnaround in its business.

The company's earnings per share (EPS) shot up by as much as 70% to Rs 63 in the nine months to December 2012 compared with the corresponding period of the previous fiscal. It also exceeded the EPSof Rs 54, which it reported for the whole of FY12. This was boosted by 26% rise in revenue and a two-fold jump in operating profit.

The company continued to show client traction during the December 2012 quarter. It added eight clients during the quarter on top of eleven customers in the previous quarter. In addition, the clients with billings above $5 million rose by four sequentially.

While the momentum looks strong, the stock seems to have factored in much of the future expected growth. According to research report by Religare, the stock trades at around 10.8 times its FY13 earnings and at 9.6 times FY14 earnings. This is on a higher side of the price-earnings band of 8-10 for mid-tier IT players. The brokerage has downgraded the stock to "Hold" from "Buy".

Source : RANJIT SHINDE,ET BUREAU

Bilcare alleges cartel behind price crash, seeks BSE probe

Bilcare alleges cartel behind price crash, seeks BSE probe

Bilcare has asked BSE to probe a 48% crash in its share price last week, in the four trading sessions between Tuesday and Friday.

Pharmaceutical packaging material maker Bilcare has asked BSE to probe a 48% crash in its share price last week, in the four trading sessions between Tuesday and Friday.

Bilcare shares crashed to Rs 73 from Rs 143 and volumes at the counter rose exceptionally high to Rs 5 lakh from a previous average of 30,000.

"Strangely, this sharp fall and high volume coincides with mobile message campaign which makes us belief that this steep fall in stock price happens to be a malafide act and managed by parties who are inimical to our business interest," says the letter written by company secretary Anil Tikekar to BSE.

Last week, one of India's largest mutual funds ICICI Prudential exited the company by selling its 11.73 lakh shares, or 4.98% stake, in the packaging material maker. ICICI Prudential spokesperson refused to comment on the share sale.

A fund manager, who did not wish to be named, said a few of the institutional investors raised questions over the financials published by the company over the past few months. These investors pressed the panic button after they failed to get satisfactory answers from the company.

A company spokesperson, while denying all allegations, blamed the bear cartel for the sharp fall in share price.

"This seems to be a vested-interest activity to malign the company and hence we have written to and requested the BSE to investigate the precipitate fall in our stock price," said a company spokesperson in a reply to ET queries. "As the leader in pharma packaging and with a global presence, Bilcare follows the highestcorporate governance norms."

The stock, which hit a record of Rs 1,830 in January 2008, rose 10% to close at Rs 84 on Thursday.

India's billionaire investor Rakesh Jhunjhunwala owns 8.51% in the company as on December 31, 2012, according to filings to the exchange. The other major investors include Deutsche Bank (8.96%), Merrill Lynch Capital (1.67%), Monument Pte (7.48%) and UTI MFFund (1.35%).

Its promoters have reduced pledged shares from 95.3% to 9.3% in Q2 of FY13. It reported a 4.2% rise in net sales to Rs 2,784 crore for the nine months ended December 2012 over the same period year ago and its Net profit declined 27% to Rs 25.22 crore.

Source : RAJESH MASCARENHAS,ET BUREAU

Top 8 midcap stocks which have eroded 50% of investors’ wealth in 2013

Top 8 midcap stocks which have eroded 50% of investors’ wealth in 2013

The BSE Midcap Index has plunged a little over 14 per cent so far in the year 2013, while some midcap stocks have eroded investors’ wealth by more than 50 per cent.

The BSE Midcap Index has plunged a little over 14 per cent so far in the year 2013, while some midcap stocks have eroded investors' wealth by more than 50 per cent.

The BSE Midcap index has seen selling pressure led by both domestic and global factors. 

Overall, benchmark indices have also come off highs registered in the month of February after an uninspiringUnion Budget, European crisis, political jitters and hawkish stance by the Reserve Bank of India failed to lift investor sentiment. 

Massive selling in large midcap stocks has largely been on the back of margin calls triggered at various domestic brokerages. Some midcaps have corrected up to 50 per cent so far in the year. 

So does that give an opportunity to investors to start accumulating these beaten down quality midcap stocks? 

According to analysts, investors can look at buying quality midcap names which have corrected sharply in recent weeks. Hawkish stance by the RBI and political uncertainty are another couple of factors which made investors jittery. 

"The hawkish stance that I saw in RBI policy coupled with political instability weighed on markets. Maybe the index overall has dipped only 3% or 4%, but a lot of midcaps have corrected by 30% to 50% in the last one week or so," says Nitin Jain, Edelweiss Financial ServicesBSE 0.17 % in an interview with ET Now. 

"I am a little worried right now from the market point of view and hence would not want to take too many long positions on equity, but it also provides you great opportunities if you are a long-term investor in certain stocks like media, and some stocks in infra, may be L&T," he added. 

The recent carnage in the midcap space has unnerved investors and left them confused about current stock price levels - will they slide further? 

Analysts also warn investors to approach with caution stocks which are highly leveraged. Most of the stocks that have corrected recently had pledged shares concerns, they point out. 

"The current market situation warrants that leverage companies be completely ignored irrespective of balance sheet side valuation. On the midcap side, City Union BankBSE 2.11 % and ING VysyaBSE -0.53 % look good. In consumer stables, Emami, Glaxo Consumer Healthcare, PidiliteBSE -2.18 % look good," said Manish Sonthalia, VP & Fund Manager, Motilal OswalBSE -4.75 % Asset Management said in an interview with ET Now. 

"In case of pharma, we like IPCABSE -0.77 % quite a bit. Even WockhardtBSE 0.72 % is quite decent in terms of earnings growth. These are some of the names that we are concentrating on and we have them in our portfolio," he added. 

The BSE Midcap index was a market outperformer in the year 2012 with gains of over 38 per cent. However, for the year 2013 the index has corrected over 14 per cent as on March 22. 

Correction in some midcap stocks may have been warranted for various reasons such as corporate governanceissues, pledged shares, deteriorating business conditions, unsustainable leverage etc. 

"However, the contagion, we believe, could have possibly spread to less susceptible candidates, thus making them value picks," ICICIBSE -1.50 % Securities said in a report. 

ICICI Securities recommends Apollo TyresBSE 0.36 %, McLeod RusselBSE 1.23 %, Indrapastha Gas, J&K Bank, Bajaj FinanceBSE -3.52 % and Torrent Pharma in the midcap universe. 



We have collated top five midcap ideas from brokerage firm Dolat Capital: 

Kajaria Ceramics: Buy with a target price of Rs 272 

Dolat Capital remains structurally positive on Kajaria CeramicsBSE 2.55 % even though Q3FY13 results were a bit muted. The brokerage firm is of the view that the below potential growth could continue for the March quarter as well. 

However, despite the short term pressures like slowing consumption and increased gas prices, they believe that the long term structural story remains intact. Further, the JV outsourcing theme continues with the acquisition of Cosa Ceramics in the previous quarter. 

Dolat expects the top line and bottom line to grow at aCAGR of 17.5% & 27.8% respectively over FY13-15 while the ROE is expected to remain strong at 31 per cent. It also expects the debt equity to go down from 0.7x in FY13E to 0.4x in FY14E and further to 0.2x in FY15E. 

Supreme Industries Ltd: Buy with a target price of Rs 409 

The company offers the widest and most comprehensive range of plastic products including piping systems, packaging solutions like cross laminated films, protective packaging products and flexible films, plastic parts & accessories for consumer durables & automobiles. 

The brokerage expects the volume growth to remain strong over the next two years (led by strong growth in Pipes & SILPAULIN), exhibiting a CAGR of 15 per cent for FY13-FY15E. 

SIL will be incurring a capex of Rs 10 billion from FY13-FY17E buoyed by strong demand across its product portfolio. The capex would be funded through internal accruals and monetization of its commercial property "Supreme Chambers". 

The brokerage firm expects SIL to report revenue & PAT CAGR of 17.2% & 21% over the period from FY13-15. SIL currently trades at 12.5x & 10.3x its FY14E & FY15E consolidated earnings (excluding construction business). 

Astral Poly Technik: Buy with a target price of Rs 472 

APTL's product range is witnessing strong growth due to product characteristics, which makes the product superior to competitors' products. APTL has license for 4 products from Lubrizol which puts APTL at an advantage. 

APTL is also aggressively expanding its dealer network to increase its presence across the country. The brand enhancement program would improve the product perception by new users. 

The continuous capacity addition at low incremental cost would enable APTL to cater the strong growth rate as well as improve the return ratios. Considering the growth trajectory and ability to protect return ratios (ROE @ 27%), the brokerage firm maintains a structurally positive stance. 

Lupin Ltd: Accumulate with a target price of Rs 656 

LupinBSE 0.21 % continues on the top of Dolat's preferred plays in Indian pharma. It anticipates limited competition in generic launches in US (gTricor.gYasmin & OC's) to aid growth trajectory. The brokerage firm expect the US segment to contribute USD 681mn to consolidated revenues during the current fiscal. 

Our FY14 estimates factor in contribution from OC launches (31 filings so far) and Tricor generic (limited competition) at USD 85mn & USD 65mn respectively to US sales, it said. Overall, Dolat anticipates 18 per cent earnings growth over FY13-15E and return ratios of over 25 per cent. 

Petronet LNG: Accumulate with a target price of Rs 180 

Key beneficiary of latent demand for RLNG reflected in the share of LNG increasing significantly in the basket from 1 per cent in FY04 to 20 per cent in FY12. 

LNG has been a better solution for India as compared to transnational pipelines due to geographical concerns and having a shorter gestation period. Capacity expansion will be a key driver of revenue growth. Liquefaction capacity expected to be doubled in next 4 years. 

Given the business model, PLL does not carry the risk of rupee depreciation or gas price as both the re-gasification margin and the off-take of re-gasified gas is fixed for confirmed off-take volumes. 

(The views and recommendations expressed in this section are the analysts' own and do not represent those of EconomicTimes.com)

Source : ECONOMICTIMES.COM

Buy cheaper flats in a resale

Buy cheaper flats in a resale

After the failed predictions over the past couple of years about a fall in property prices, you are more likely to witness the prophesied Second Coming before the promised correction.

After the failed predictions over the past couple of years about a fall in property prices, you are more likely to witness the prophesied Second Coming before the promised correction. So what should cash-conscious buyers do? Wait endlessly in the hope that realty prices falter or take the bait of glossy schemes offered by developers? While most such offers for new houses seem tempting, you won't derive any real benefit. 

Fortunately, there is a third option: cheaper flats in the resale market. No, these aren't old, mouldy apartments in decades-old projects. Quite a few of these houses have not even been lived in, but you can still get them at a discount to similar houses within the same project or vicinity. If you're wondering why resale flats are cheaper than the new ones being offered by the developer, it can be due to various reasons. One of them is that these houses have been snapped up by buyers and investors during the pre-launch phase with the intention of selling them after about three years to earn a profit. At this stage, they were only required to make the down payment.

"Many investors book a property at the initial stage just to make a small profit. If they want to make a quick exit, they will price it cheaper than the one offered by the developer, for a faster sale," says Yashwant Dalal, president of the Estate Agents Association of India, an apex body of real estate developers.

Another reason is that a lot of investors who book flats during soft launches are offered heavy discounts by builders. "To get funding before construction commences, builders offer investors at least a 20% discount to the prevailing market rate," adds Dalal.

So, even if such investors sell the flats at a price lower than the one offered by the construction company, they make a hefty profit. While individual buyers readily make the down payment, a few find out that their finances are strained when they have to start paying the home loan EMIs after the construction is complete, especially if they are also paying a rent. In some cases, they find another project that is more to their liking. Obviously, in either situation, the only option is for them to sell the current house as quickly as possible to repay the home loan, even if it means earning a smaller profit than the one they had hoped for.


Also, a seller may prefer to dispose of the house before he starts paying the EMI. This is because the home loan principal repayment benefit of up to Rs 1 lakh under Section 80C is reversed if a house is sold within five years of buying it. The amount that he had claimed for tax deduction would be included in his salary and become taxable. Another factor that could influence the seller's decision is that he would want to exit the property before taking possession. This would help him avoid paying the additional charges, such as the fee for parking space or club membership. The seller could also avoid paying the registration charges and stamp duty, which can be as high as 12% of the value of the property.

Not paying these will help him offer the house at a discount while selling it. How you gain The biggest benefit of buying in the resale market is that the construction is almost complete and some of the houses are ready to move in. So, unlike in the case of a project that is still under construction, you don't have to worry about when you will get the possession.
"There is always a risk associated with projects that are being built in terms of delays or handover. An added benefit in the resale market is that if you are leasing an apartment, shifting to a fully built house will help you save on rental costs, unlike purchasing a property under construction, where you pay the rent as well as EMIs," says Anshuman Magazine, chairman and managing director (South Asia), CB Richard Ellis.

Of course, in this case, you will also know that you are getting exactly what you are paying for. You can be sure that you won't be duped by the developer, who promises to instal marble or wooden flooring and, instead, puts in regular tiles. Another advantage is that you can avail of the tax benefit beginning with the first mortgage payment. The tax deduction of Rs 1 lakh on the principal component of an EMI is available under Section 80C, while the interest paid on a home loan is tax-exempt up to Rs 1.5 lakh under Section 24 B. However, this is possible only after you take possession of a house. In case of a property under construction, you have to pay the pre-EMI, which is the interest on the home loan.

Though the total interest that you pay as pre-EMI can be tranched into five payments that are eligible for tax exemption for five years after you take possession, they are included in the capped amount under Section 24B. So there's hardly any benefit in this case. Problems you may face In the resale market, the down payment is higher than that demanded by a builder, which is usually 20% of the value of the property. Also, the seller may ask for a portion of the selling price to be paid in cash, which means that you will have to apply for a smaller home loan (see 9 questions to ask). So, you should be sure that you can afford to pay 25-30% of the price. Also, when you buy a property in the resale market, you are dealing with an individual rather than the developer, who has a reputation to protect.

"You can't take anything at face value here, so you must thoroughly scrutinise all the property documents, especially those that verify the seller as the real owner of the property, who has the right to dispose it of," says Om Ahuja, CEO, Residential Services, Jones Lang LaSalle India.





Go through the original sale deed and the society's share certificate carefully. If you plan to take a home loan, you will have the advantage of the bank doing the necessary due diligence. Beyond the sale price, there will be additional costs that you should factor in, such as registration costs and transfer fee to the housing society. Before taking over the house, make sure that the seller has paid all outstanding dues and taxes. However, to get the utility connections transferred to your name, you will have to pay a fee to the relevant state departments or municipal authorities. Though these houses are practically new, you may want to carry out renovations or changes to suit your taste. So, include such costs while finalising your budget. There could be other minor issues like not getting the membership to the society's club because it is full or the lack of parking space.

"If the first buyer did not buy the parking space, the new buyer may not be able to get a new parking lot even if he is ready to pay for it," says Ahuja. The situation may be worse if your family owns more than one car. What if the property is mortgaged? If the house is already mortgaged with a bank, you should ask the seller to obtain a letter from the relevant bank stating that it agrees to relinquish the property documents when the loan is fully paid. After you are satisfied with all the property documents, you can make a token payment to the seller and enter into a registered agreement with him. You can then deposit the balance payment to the seller's loan account, after which the bank will initiate the process of releasing the documents.

The bank and the seller will fix a date by which you will have to make the full payment. If you are unable to do so by the due date, the bank will levy either a penalty or a premium over and above the outstanding principal, which you will have to pay. If you plan to take a home loan to pay for the house, your bank will directly transfer a portion of the outstanding amount to the seller's loan account. Once the seller's bank receives the payment, it will issue a 'no objection' or 'no dues pending' certificate to the seller and hand over the original documents to your bank, which will then transfer the balance payment.

Why are resale flats cheaper?

1) Builders are reluctant to bring down the price as:

Existing buyers may want a refund since they bought at a higher price.

The builder has to give an exit option to the people who invested in the prelaunch phase.

Property developers are hoping for the market to pick up.

Some builders can manage to hold on to prices as they have access to funding.

2) The recovery in the market is taking too long and some investors want to exit even if the profit is less.

3) Individual owners may not be able to hold on to an investment property if they face a fund crunch or can't afford the EMIs.

4) There is oversupply in some markets and the owners are more willing than builders to lower the prices.

9 questions to ask

1) What's the cash component?

The seller may want a part of the selling price in cash. In the sale deed, he may quote only the amount that you pay through cheque, not the entire price. In this case, you won't get a home loan for the full price.

2) Is the property registered? 

Several properties are sold through power of attorney. Check if the property is included in the government registry. If it isn't, it should be cheaper.

3) Is the house free of debt? 

Is the property mortgaged to the bank or has the home loan been paid? If possession has been taken, are all the utility bills paid?

4) Are all documents in order? 

Check documents like the share certificate in the owner's name, agreement made by seller with the last party, and the NOC from the housing society.

5) Do you need to deal with the builder? 

Many flats are being sold by investors even before they take possession. In such a case, check if you need an NOC from the builder.

6) Is the property disputed? 

Are there any lawsuits regarding the property? You don't want to pay for a house and realise that it won't be yours for years.

7) Why is the property being sold? 

This is important as there could be issues like noisy neighbourhood, seepage problem, water scarcity, etc.

8) Who will pay the tax? 

The Budget proposes to impose a 1% TDS on properties worth more than `50 lakh and the onus to pay will be on the buyer. So, you should clarify this with the seller before finalising the deal.

9) What are the transaction costs? 

Enquire about the transfer costs that you will incur. Though some fees are fixed, the housing society may, at its discretion, demand additional charges.

Source : AMIT SHANBAUG,ET BUREAU 

Dabur’s scion Amit Burman’s Lite Foods acquires Italian restaurant Scalini

Dabur’s scion Amit Burman’s Lite Foods acquires Italian restaurant Scalini

Amit Burman (Left) and Rohit Aggarwal at the launch of Asia 7, the restaurant at the Clarion Collection Qutab Hotel, New Delhi. (Pic: BCCL)

Dabur scion Amit Burman's Lite Bite Foods has acquired London-based Italian restaurant Scalini, a regular haunt for footballers and other celebrities . Burman plans to take Scalini , a privately held fine dining eatery located in the tony neighbourhood of Chelsea , international by opening doors in Moscow, Dubai and India over the next one year .

Lite Bite already operates restaurant chains such as Punjab Grill and Zambar in India , where the food & beverage sector is witnessing frenetic investment activity as urban middle class spends more on eating out.

Talking to TOI, Burman , vice-chairman of Dabur IndiaBSE -2.13 % and promoter of Lite Bite Foods, said , "Scalini is an iconic restaurant in London and we thought it is a kind of brand which has the potential to be taken outside of the UK. It will always play in the niche' space so we will look at Mumbai and Delhi along with exploring overseas presence ."

He did not disclose financial details of the transaction , but said the two-decade-old Scalini has "healthy revenue and profits" . Burman said it made sense to spot such properties internationally and build them as asset valuations as the domestic market had become very steep . Lite Bite Foods made overseas foray by opening Punjab Grill in Singapore two years ago .

Several rich Asian businessmen have stepped into the European F&B space of late . Dubai-based NRI tycoon Micky Jagtiani , founder of Middle Eastern retail and leisure group Landmark , snapped up niche high end restaurant chains like Carluccio's in recent years .

Lite Bite is expected to close the current financial year at a Rs 150-crore turnover , and looks to double it by next year with the help of 30 new outlets it will open at the new Mumbai International airport terminal later this year . It currently operates 65 outlets, which include franchisee formats such as Subway and Pollo Campero along with its own brands including Asia 7, Rapps , Big Gulp and Bakers Street .

"Casual dining and QSR formats are still the biggest chunk of the F&B industry as there is a limited clientele one can tap for fine dining niche restaurants . However , that is likely to change as the market matures ," said Deepesh Garg , director at Mumbai-based investment bank o3 Capital Advisors .

India's organized F&B retail market is estimated to be around Rs 5,000 crore in size and is growing at 15-20 % per annum , making it an attractive for players like Lite Bite, aventure founded in 2008 by Burman a along with Tejpavan Gandhok and Rohit Aggarwal .

Global fine-dining brands such as Hakkasan and Megu have forayed into the country along with a slew of quick service restaurants as more urban Indians experiment with different cuisines .

Source : SAMIDHA SHARMA,TNN 

Godrej invests in community social network

Godrej invests in community social network

Nadir Godrej, managing director of Godrej IndustriesBSE 0.26 % - part of the $3.3-billion ( Rs 17,800 crore) Godrej Group, has invested an undisclosed amount in LocalCircles, a community-based local social network, joining a growing list of corporate leaders who have turned into angel investors.

The Delhi-based start-up enables citizens to connect with local communities, including neighbours, colleagues and teachers, and find assistance during emergencies like fire or accidents through web or mobile phones.

"I thought this was an unusual development. They are trying to bring local communities together, bringing considerable amount of social value, and that attracted me," said Nadir Godrej, younger brother of group chairman Adi Godrej.

Besides Godrej, Maruti SuzukiBSE -0.44 % chairman RC Bhargava has joined the company as member of the advisory board.

Recently, a number of corporate leaders are backing young companies as the country witnesses an entrepreneurship boom.

While NR Narayana Murthy, co-founder of Infosys, has set up a $129-million venture capital fund called Catamaran, Ranjan Pai, CEO of the Manipal Education and Medical Group, along with former InfosysBSE -0.55 % director TV Mohandas Pai, has launched Aarin Capital, a $100-million private equity fund with a focus on life sciences, technology and internet sectors. Also, Nirvana Venture Advisors, a $75-million fund, is anchored by the Patni family, the founders of Patni Computer SystemsBSE -0.08 %, and Wipro's billionaire chairman Azim Premji has launched Premji Invest, a $1.5-billion fund.

Source : PEERZADA ABRAR,ET BUREAU

Made-in-China clones: Can’t afford an iPhone? Get a true copy at just Rs 9,000

Made-in-China clones: Can’t afford an iPhone? Get a true copy at just Rs 9,000

Reproductions of the in-demand Samsung Galaxy line are also at hand. Made in China, websites ranging from Kaunsa.com to Indiamart.com.

It is an iPhone 5 - or is it? It has the same iconic design. It almost feels as light. But then you look at the price tag - and here's something even Apple has never managed to achieve Rs 8,999. It is a "true iPhone clone", as it has been helpfully named in shopping portals and comes for less than one-fourth the price of the original.

It's not just Apple products that have been ingeniously 'cloned'. Reproductions of the in-demand SamsungGalaxy line are also at hand. Made in China, websites ranging from the somewhat cheekily named Kaunsa.com to popular B2N site Indiamart.com are offering them, with a shipping period of only a few days.

The iPhone 5 32GB clone is Apple only on the surface. The screen of the "true clone" is a 4-inch OLED capacitive touchscreen that runs on iOS 5 while the Cupertino-based company's fastest-selling phone runs on the superior iOS 6 and has an LED-backlit LCD screen with retina display.

The true clone of the Samsung Galaxy S3 is more expensive than the true clone of iPhone 5 - 11,999, less than half the price of the original.

A Mockery of IPR Laws?

The manufacturer is a Chinese brand, MID, owned by Shenzen-based Prote Technology, which according to its website, specialises in making tablets.

So are they even legal? Not exactly, says R Parthasarathy of law firm Lakshmikumaran & Sridharan, which specialises in IP laws. He says marketing and selling replicas of branded products "may be illegal for various reasons, such as violation of registered designs/trademarks". Owners of registered IPRs can also request the Customs to stop import of such products, he adds. Emails to Prote Technology and Mify Solutions, which owns Kaunsa.com, on the clones of branded products being sold online in India did not elicit any response. Neither did phone calls to these firms.

Another shopping portal, Android-sale.com, offers iPhone 5 replicas from several Chinese manufacturers. And as the name of the website hints, these run on the Android 4 operating system. These are available for Rs 13,500-27,000.

One such wholesaler and importer told ET on condition of anonymity that handsets are imported from large-scale manufacturers in China and Taiwan, and thousands of suppliers are in the business of selling replicas online. "They [Chinese manufacturers] can supply any kind of handset we want. We can give you originals and duplicates of Samsung and iPhone at a far less price. We can even deliver it in a day," he says.

Brijesh Agarwal, co-founder and director, Indiamart.com, says his company is not an e-commerce portal and does not sell directly to customers. "We provide a platform for buyers and suppliers to meet and then transact with each other. We allow suppliers to offer a wide range of products - from high-quality products to low-quality ones. Our role is limited to helping both supplier and buyer make connections. Making guarantees on behalf of suppliers is a little difficult. Our recommendation to buyers is to verify the suppliers they make their purchase from," says Agarwal.

But do these products have takers? The numbers will be small, say tech watchers. Rajat Agrawal of consumer technology news portal BGR India says the profile and purchasing power of the people who buy clones are very different from those who buy the original on equated monthly payments. The grey market for handsets in places like Gafar Market and Nehru Place in Delhi and Heera Panna in Mumbai is itself a very small percentage of the Rs 31,000-crore cellphone market in India. It will be far less for bargain-basement priced look-alikes online.

Source : GULVEEN AULAKH,ET BUREAU