Monday, July 24, 2017

Market Mantra
1. Buy Videocon Industries Ltd at Rs.26.70, for short term targets of Rs.33-34. The medium term targets could be Rs.61-67.

2. Mandhana Industries Ltd (Rs.11.50) is being hammered by operators before they enters. The subsidiary company, Mandhana Retail Ventures Ltd is backed by big bull Rakhesh Jhunjhunwala and seasoned market man, Ramesh Damani.
Made in Foreign
One of the chief slogans of Narendra Modi's government has been "Made in India". Under
this 'strategic partnership' model, select private firms were supposed to build militarly platforms like fighter jets, submarines and battle tanks in collaboration with foreign defence majors.

But hereto what we got on the plate is altogether a different preparation or we are till now witnessing " Made in Foreign Campaigns", at the cost of foreign exchange and BOP. Earlier, there were murmurs (Rumors) that these multi-billion dollar contracts generate high kickbacks. A visibly honest defence minister has been sent back to his home state, Goa. Who will be the new full time defense minister is anybody's guess.

According to a recent news report, Fifty-eight contracts involving Rs.1.21 lakh crore were signed by the government with foreign defence firms in the last three fiscals for procuring aircraft, helicopters and weapons systems for the armed forces.

Is the government really interested in "Made in India", story, when the defense sector is concerned? Or it is just another of those infamous "Jumlas" of Narendra Modi - Amit Shah combination ?

Saturday, July 22, 2017

 Winning Strokes: Think Different
Future Enterprises Ltd recommended at around Rs.18.50, yesterday made a new 52-week high and closed at Rs.38.65 in the NSE. The next natural target comes around Rs.41-42, if Rs.37.50-37.70 holds.

Meaningless selling by the operators is pushing down the shares of Mandhana Industries Ltd (Rs.11.65) to some unbelievable levels. The company has a debt of only Rs.800 Cr and is doing SDR. It's retail arm us backed by ace investors like Rakhesh Jhinjhunwala and Ramesh Damani. 

Reliance Defense and Engineering Ltd is consolidating at around Rs.59-60, before the next round next round of upmove. This stock.like my other recommended counters like Vedanta Ltd, Himdalco Ltd, etc will invariably make new 52-week high. Keep accumulating at dips with a SL of Rs.58.

Note: I am not keeping well.since the last few days. Hence, this blog may/may not be updated regularly.

Tuesday, July 18, 2017

Mandhana Industries Ltd: Accumulate
CMP: Rs.12.35
A buy was initiated in Mandhana Industries Ltd considering its low debt of around Rs.800 Cr and P/BV ratio of 0.07 at around  Rs.13.50 some days back. Maintaining a positive stance, the investors are suggested to continue to accumulate the scrip on every decline since:
(i) This is the parent company of Mandhana Retail Ventures Ltd, which has a debt of only Rs.800 Cr, inspite of its sales getting hit by Narendra Modi's destructive economic policies, like demonetisation.
(ii) The bankers have already invoked, strategic debt restructuring (SDR) and the company is in the process of completing all the formalities of the invocation....
(iii) The Mandhana Retail Ventures Ltd (Rs.163.50) is backed by the Bollywood film star, Salman Khan and the ace investors Rakesh Jhunjhunwala and Ramesh Damani. Rakesh Jhunjhunwala is having a member in its board. The retail arm is almost debt free.
(iv) Yesterday, the percentage of deliverable quantity to the traded quantity was whopping 67.90%. Every trade needs a buyer and a seller for any transaction to get executed; so the percentage of delivery is important to understand the mood of the traders/investors.

Sunday, July 16, 2017

Mandhana Retail Ventures Ltd
CMP: Rs.164.30
This is the retail division of Mandhana Industries Ltd (Rs.13.57), which currently has 60
Exclusive Brand Outlets (EBOs), 259 Shop-in-shops (SIS) and presence in 22 states and 68 cities, is planning to open 20 new stores every year.

As of 30 June, 2017, the ace investors Rakesh Jhunjhunwala and Ramesh Damani hold 12.74% and 1% shares of the company, respectively. Promoters Pledge Holding(Rs.Cr.): 92.52.



Mandhana Industries Ltd
CMP: Rs.13.57
Mandhana Industries Ltd is a vertically integrated textile and garment manufacturing company in India. The company produces fabrics for the domestic market and garments largely for exports. They are having their presence across operations ranging from yarn dyeing to garment manufacturing. Their business includes designing, yarn dyeing, weaving, processing, dyeing and garment manufacturing.

The company operates in two segments namely, Textiles and Garments. The Textiles segment produces greige and finished fabrics, such as cotton fabrics; yarn dyed fabrics; and embroidered, embellished, and blended cotton fabrics. The Garments segment produces various readymade woven garments, such as mens shirts; womens blouses, tops, dresses, and skirts; casual bottom wear; kids wear; sports wear; and jeans wear.

The companys customers include Aditya Birla Nuvo (manufacturers of brands like Louis Phillipe, Van Heusen, Peter England and Allen Solly), Pantaloon Retail, ITC (manufacturer of brand Wills LifeStyle) and Turtle. Their overseas customers include brands like Tommy Hilfiger, Charles Vogele, RIP CURL, All Saints, Simint, Colins, Pepe Jeans and LAFUMA.

The company demerged its retail business into resulting company, named Mandhana Retail Ventures Ltd, and all the current and future retail operations of Mandhana Industries will be carried out through it.

The company hit a all-time high of Rs.345 a share on 22 March, 2016 and since then, it has been falling. Mandhana Industries listed on 19 May 2010, with an offer price of Rs.130 a share.

The Financial Institutions/ Banks hold 2.09%, while LICI holds 1.99% of the shares of the company. 
Promoters Pledge Holding (Rs.Cr.): 10.73.

Friday, July 14, 2017

Winning Strokes: Think Different
Mandhana Industries Ltd hit another buyer freeze in both the exchanges and it closed at Rs.14.21 in the BSE. Congratulations to all those who bought the scrip reading this blog.

Reliance Defence and Engineering Ltd today clocked a huge volume of more than 38 lakh shares and closed at Rs.61.10, marginally down from its previous closing price. Also, the percentage of  Deliverable Quantity to Traded Quantity was whooping ~50%, which means large scale accumulation is going on in the counter as the shares are changing ownerships. The stock is currently placed above its 50D, 100D, 150D and 200D SMAs and EMAs, which itself is a bullish indicator. I have mentioned earlier that this stock will make fresh 52-week high in the coming days; so remain invested.

Unitech Ltd further tanked to Rs.7 today after profit booking was suggested in the counter some days back at around Rs.8.50-8.70. It is expected to slide down further and come near Rs.6. It rose suddenly because a Gujarat based operator named Arvind Bajaj, who has a large fan following in that "Brothel" called MMB gave a buy on the scrip.

I have another scrip like Mandhana Industries Ltd which could give good returns in the short term. Those who are interested to know the name of the scrip should deposit a cheque of Rs.10,000 in my bank account. You can contact me at: suman2005s@rediffmail.com.


Thursday, July 13, 2017

Reliance Communications Ltd: What to do?
CMP: Rs.24.30
Photo: Evolution Athletics
Off late the shares of RCom has been moving up, on the news of a debt restructuring (debt reduction) plan and stake sell. It has steadily moved upngrom the 52 -week low price of Rs.17.80 to the CMP of Rs.24.30 in both the exchanges.

It is pertinent to mention here that, the telecom sector is passing through a financial crisis. There is a huge combined debt of more than Rs.4.5 lakh crore on the mobile operators. RCOM has a debt of more than Rs.42,000 crore, while its EBITDA is about Rs.4,600 crore. The government has set up an inter-ministerial group to address the issue of financial stress of the telecom companies.

Also, RCOM wrote a letter to IMG on 4th July, asking it to do away with the 10% cross holding norm, so that it will be able to sell its equity to the existing operators. In such a situation, only two companies are in a position to buy RCOM’s equity – Bharti Airtel, which is market leader, and Reliance Jio. In last couple of years, Bharti has bought spectrum from Vodafone, Aircel, Tikona and Telenor.

However, Reliance Jio seems to be a major contender to buy equity in RCOM. It will help the company as it will get control over whole spectrum of RCOM. It will give further lease of life to RCOM and will give more time to set its house in order and sell its properties to ease debt burden.

Though both the moves look apparently positive, but the risks involved in the short term are very high.

Since the last few months, Narendra Modi has been in limelight for all the wrong reasons: (a) Fruitless demonetisation to curb black money which swelled the death toll basket to 100 - plus, with not much effect on curbing fake notes -- bleeding the exchequer of more than Rs.10,000 crore in the form of printing new notes and logistic costs and wasting the productive banking hours, apart from keeping the bank officials busy with unnecessary works and making their lives Hell.
(b) Taxing Indians hard and making the life of businessmen miserable in the name of GST,
(c) Visiting scores of Islamic countries and burning foreign exchange (generated from poor tax payers money) for "Improving relations" and generate more investments in the form of FDI and FPI and then landing up in Modi - like stupid blunder of visiting Israel to draw their wraths, especially Iran who is a bitter enemy of Israel and finally,
(d) The unnecessary military brinkmanship in the Chinese border at the behest of a tiny neighbour, who can't even manufacture a bicycle on its own. India has $70.8 billion trade relationship with China, Narendra Modi's moronic border pursuits is out to destroy all that has been built over the years; by the prudent foreign diplomacy of his predecessors. Narendra Modi's much advertised Chinese visits have already proved to be, "Just Waste of Time and Money".  Narendra Modi is himself a product of blunder by the people of India, who believed his words and voted him, thinking that he would usher in "Ram Rajya".

Firstly, the government of India or Narendra Modi's government is involved, which has done more harm to the telecom sector than good. In fact the BJP's vocal diatribes during the UPA Regime regarding its allegations of a botched - up, discovery price of telecom spectrum has already ended-up in a smoke. In other words, the last failed spectrum sale by the NDA government once again proved the futility of the tall claims of the BJP leadership, of an imagined Rs.1.5 lakh crore loss to the exchequer.

2ndly, according to a recent article in Financial Express, a consortium of lenders to Reliance Communications (RCom) is unwilling to accede to the telco’s demand for Rs.600 crore of additional credit. The funds sought were primarily in the form of non-fund-based bank guarantees.

In such circumstances, I feel it would be prudent to book profits in the short term at Rs.24-25 ranges and wait for the scrip to break above the strong resistance zone of Rs.25.50 - 26.50 ranges. Having said this, the long term investors can keep holding with a SL at Rs.22.20.


Wednesday, July 12, 2017

Winning Strokes: Think Different
Mandhana Industries Ltd (BSE: Rs.13.54 and NSE: Rs.13.50),  hit the Upper Circuits today in both the exchanges. Congratulations to those who bought the scrip on my suggestion.

Reliance Defence and Engineering Ltd (Rs.62.65) today closed near the day's high of Rs.62.90. The scrip will make new 52-week highs in the coming days. Remain invested and accumulate in intraday dips. The investors can keep a SL at Rs.61.60. There are more chances for the scrip to go up from here than go down -- MACD, PPO, etc are in Buy Mode. If Rs.67.70 is crossed, the immediate targets are Rs.72-77. The stock of RDEL is currently trading above its 50D, 100D, 150D and 200D SMAs and EMAs, with the chance of a "Golden Cross" happening in the short term, which is very BULLISH.
According to ET, 11 July, 2011: Reliance Infrastructure of Anil Ambani-led Reliance Group has received government approvals for its planned $1-billion greenfield aerospace park near Nagpur. The board of approval for special economic zones (SEZs) in the ministry of commerce has given its approval to the proposed aerospace park spread across 289 acres at Mihan near Nagpur.
The park aims to carry out business worth over Rs 200,000 crore over the next 30 years, the company said. In the first phase, the project will build manufacturing unit for production of aircraft, electronic warfare systems, radars, unmanned aerial vehicles, maintenance repair and overhaul for commercial aircraft, and complete eco system, including ancillary units and suppliers, to support these large projects. This development will be spread over 104 acres and the second phase will cover an additional area of 185 acres.
It is to be noted that Reliance Infrastructure acquired the erstwhile Pipavav Defence & Offshore Engineering in 2015 to make a foray into the sector.

Unitech Ltd (Rs.7.20) continues to tank, after profit booking was suggested in the counter, last week around Rs.8.70. Both GST and RERA is negative for the Real Estate sector. If you remember, I recommended the scrip before GST came into effect. And was since then asking to book profits and exit the counter.

Rolta India Ltd (Rs.61) is consolidating around the current price, before the next upmove. The long term investors should however keep a SL at Rs.58. 

Today's Short Term Call
Buy Mandhana Industries Ltd at Rs.12.35 (BSE) or Rs.13.45 (NSE) for short term targets of
Rs.17-21. Being Human, the retail division of Mandhana Industries, which currently has 60 Exclusive Brand Outlets (EBOs), 259 Shop-in-shops (SIS) and presence in 22 states and 68 cities, is planning to open 20 new stores every year.

Being Human, a clothing line with a heart was launched by Salman Khan, India’s A-list cine-star in 2012 and is globally licensed by The Mandhana Retail Ventures Ltd.

Winning Strokes: Think Different
1. Rolta India Ltd (Rs.60.20) moved to Rs.65.40 yesterday. The stock was recommended some days back at Rs.51.70-51.50 and later when it moved to Rs.53-54.85 profit booking was suggested, with future entry above Rs.54.70. Hope, you have made some money in the scrip.

2. Unitech Ltd, tanked to Rs.7.55 yesterday in the NSE, after touching an intra-day high of Rs.8.55. The scrip if you remember was recommended around Rs.5.05-5.25, some weeks back. Hope most of you who entered above Rs.6.50, make a short term killing in the scrip.

3. My recently recommended Reliable Defense and Engineering Ltd (Rs.62.10) moved to Rs.64.10, in the NSE, yesterday. Narendra Modi's maiden visit to Israel has brought positive sentiments in defense related stocks among the investors; as the Prime Minister has clocked and locked deals and has firmed up economic ties with the technologically advanced and innovation-driven nation. On the other side, his Israeli counterpart Benjamin Netanyahu announced the establishment of a $40 million innovation fund to promote technological cooperation between India and Israel. Reliance Defense is now a huge company in the defense sector, and the Stock could cross Rs.100 in the medium term - remain invested.

4. Those who had entered Future Enterprises Ltd (Rs.34.30) at around Rs.18-18.50, can book profits and exit the counter. You can again take entry above Rs.38.50. 

Join the Premium Services (at Festival Discount offer, till 31st December, 2017) or trade through my recommended brokerage house to stay ahead of others.

Tuesday, July 11, 2017

Flash News
Reliance Infrastructure Ltd (Rs.63.30) of Anil Ambani-led Reliance Group has received government approvals for its planned $1-billion greenfield aerospace park near Nagpur, reports the Economic Times on 11 July, 2017.