The Hindu Business Line : Attractive rate from J.K. Industries

J. K. Industries: Investors may consider parking their funds in the fixed deposit scheme, with a one-year tenure, offered by J. K. Industries. The deposit carries a healthy interest rate of 8 per cent. The company is fundamentally sound with a strong presence in the automotive tyre industry. It has presence in the fast growing radial tyre segment as well. The company has facilities to produce truck radials that are likely to gain popularity. The reduction in the excise duty on the tyres sold in the replacement market is another positive feature. On the flip side, the rising trend in raw material prices is a cause of concern. Though the tyre prices have been revised, any further rise could dent profitability. Given this backdrop, it would advisable to lock-in to the deposits with a one-year maturity.

Cholamandalam Investment: The one-year fixed deposit programme of Cholamandalam Investment & Finance Company can be considered. The company offers 6 per cent with interest paid either quarterly or annually. For monthly interest payments, the minimum period of investment is three years, but this can be avoided. Cholamandalam is one of the safer investment options in the NBFC arena. The rate of interest is also attractive compared to other investment options such as bank term deposit and is only 0.25 percentage points lower than that of Post Office Term Deposit. Withdrawals before three months are not allowed. Withdrawals after this period also would suffer penalty in the form of a reduction in the contracted interest. For withdrawals between three and six months, no interest would be paid. For withdrawals after six months, the interest paid will be only 4.5 per cent.

Television Eighteen: An investment may be considered in the fixed deposit programme of Television Eighteen. The company offers FD for a one-year period. The interest rate of 9 per cent on offer appears attractive, as does the 9.5 per cent for senior citizens. This is one of the higher rates on offer and appears to compensate for the higher risks involved with the company's operations. But investors should invest only a part of the funds set apart for investment in fixed-income options, perhaps not more than 20 per cent. The revenue and earnings profile of the company has shown a steady improvement over the past year; the earnings are now at healthy levels that provide for a high degree of comfort in clearing interest obligations. The company operates two channels in the business news space — CNBC TV 18 in English and the recently launched Awaaz in Hindi. It now faces intense competition from New Delhi Television. But over a one-year period, we do not perceive any significant risk to profitability and its ability to pay interest on its fixed deposits. Buy into this attractively-priced FD option.

Shriram Investments: Investments can be considered in the high-yielding fixed deposit and debentures schemes of Shriram Investments. The company offers 7.75 per cent for a three-year cumulative fixed deposit and 8.40 per cent for a three-year cumulative debenture. It also offers 7.50 per cent for a three-year non-cumulative fixed deposit and 8.0 per cent for a three-year non-cumulative debenture. The offer is attractive and the risks are now lower considering the business growth and the capital infusion made in recent years. Investors can contact Shriram Investments at 044-24990960, 3 Floor, Mookambika Complex, 4, Lady Desika Road, Mylapore, Chennai - 600004

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