"Mumbai (Bombay) Sickness": Generally NOT letting the apartments for rent to Bachelors and Sprinters"....

Wednesday, October 07, 2015

Photo: V C Circle
Tata Steel Ltd recommended to the Premium Group members at Rs.217 on 05 October, 2015; today touched Rs.237.70 intra-day. The steel companies are moving up along with those in the construction space. 
Yesterday, Reliance Communications Ltd was recommended to the Premium Group members, today it touched Rs.76.75 intra-day.  
Lanco Infratech Ltd was recommended to the Premium Group members at Rs.3.25 on 9th September, 2015. The scrip made a high of around Rs.5.9, when profit booking was suggested to the Premium Group. Today it closed at Rs.4.85. This means that even if you somehow get the name of a stock, you might not be able to make gains, without proper guidance. This market is not for the novices and part-timers. Get the services of experts, to get maximum benefits from the stock market. 
Buy Rohit Ferro-Tech Ltd at Rs.5.75, for a target of Rs.9.7 (recommended to the Premium Group at Rs.5.68). Rohit Ferro Tec is in the Mining & Minerals sector. The current market capitalisation stands at Rs.65.42 crore. Earlier there were media reports that Balasore Alloys Ltd (formerly Ispat Alloys Limited), which is part of the Ispat Group, had inked a deal to acquire Rohit Ferro-Tech's Jajpur-based manufacturing unit for an enterprise value of $164.5 million (approximately Rs.1,025 crore). The company decided to dispose of the Jajpur unit so as to ease its financial burden and improve its cash flow requirement. It also has units located at Bishnupur and Haldia in West Bengal.
The steel sector should do well in the coming days, after a tide of imports created problems for the players. It is pertinent to mention here that the Indian economy, which grew at less than 5% for two consecutive years in 2012-13 and 2013-14 (going by a previous gross domestic product—GDP—series), saw investment come to a virtual standstill during that period. However, the government is filling the gap by pushing up capital spending. It is encouraging to note that the government’s plan expenditure jumped 112% year-on-year in the April-July 2015 period, with the capital component of plan expenditure leaping 84%, according to a 1 September report by Deutsche Bank Market Research.
Today, a stock from the Jindal Group was recommended to the Premium Group members, as a buy. Can you name the stock? Join the Premium Group, to stay ahead of others. 

Note: I am changing my location in Mumbai (Bombay), hence I would be very busy for the next 9-10 days. Hence, both the Premium and Free blog might not get updated daily. Please bear with me. 

Monday, October 05, 2015

SAIL, Essar hike prices of flat steel prodcuts, take advantage of safeguard duty 
Photo: SAIL
KOLKATA,2 Oct, 2015: Major steel producers have announced a price hike on flat steel products, taking advantage of the 20% safeguard duty imposed last week on hot rolled (HR) coils. The country's largest state-run steel producer Steel Authority of India (SAIL) has raised prices of flat steel products like HR coils by Rs 700 per tonne. Essar Steel too on Thursday decided to raise prices by Rs 500 per tonne on its range of flat products with immediate effect. 

Similar moves are expected to be made by other private sector players too within the next few days, causing a furore among a section of the steel users. They have protested against the hike and raised the demand for a 20% anti-dumping duty on finished steel to create a level playing field. "Our margins are under pressure. Imports continue to affect us. The market remains tough," an official in a leading steel company said to justify the hike. An industry source said the price change is more in the nature of a correction after the prices dropped by almost Rs 10,000 over the past year. 

Analysts were surprised by the timing of hike since the steel market remains lacklustre and the price increase came close on heels of the safeguard duty. 

"The key factor that can sustain any price increase is a revival in steel demand. However, in this case, the main user industries for HR coils -auto and consumer goods -remain slow. Hence, main producers are perhaps testing the waters by announcing a price hike," Goutam Chakraborty, metals analyst at Emkay Global said. 

An official with a top private sector steel producer said they were likely to announce a decision on prices on Monday (October 5) ahead of "a long weekend before us." 

Reacting to the price hike a sizeable section of steel users have called for imposition of a 20% anti-dumping duty on finished stee products to counter the 20% provisional safe guard duty on hot rolled coils a key raw mate rial for value added steel products like seam less tubes & pipes, engineering and fabrication as well as the auto sector. The safeguard duty has prompted steel pro ducers to hike prices making the input mate rial expensive and manufacturing costlier for a large number of end users. This, accord ing to them, will adversely affect the govern ment's 'Make in India' campaign since stee is a major input for the manufacturing sector as a whole. 

"The government should immediately im pose 20% duty on finished manufactured products of steel coming into India to pro vide a level playing field. Imposition of safeguard duty of 20% on hot rolled (HR) coils has made our raw material expansive and domestic manufacturing costlier. How can we compete with imports?" 

H L Bhardwaj, secretary general of Federation of Industries of India (FII), a grouping of domestic manufacturers of seamless tubes and pipes said. He added the domestic seamless pipes industry, which employs over 25,000 people, is staring at imminent closure due to dumping of cheaper products from China. 

"The industry is reeling under low capacity utilisation of 20-30% for the past year and may be forced to shut down factories leading to job losses and closure of ancillary industries,

H L Bhardwaj, secretary general of Federation of Industries of India (FII), a grouping of domestic manufacturers of seamless tubes and pipes said. He added the domestic seamless pipes industry, which employs over 25,000 people, is staring at imminent closure due to dumping of cheaper products from China. 

"The industry is reeling under low capacity utilisation of 20-30% for the past year and may be forced to shut down factories leading to job losses and closure of ancillary industries,"

Bhardwaj said. With a base of 4.5 million tonne, pipes and tubes form a sizeable and critical chunk of steel users, along with other aggrieved user segments like general engineering, fabrication and auto sector. 

Lanco Infratech Ltd (Rs.5.97) recommended on 9th September, 2015, at Rs.3.25 has hit another buyer freeze today. The scrip has almost doubled in the last one month, after its recommendation was put on the Premium Blog. The share was chosen amongst a group of Infrastructure companies, based on some positive developments.

Meanwhile, Lanco Infratech Ltd has allotted 26,51,74,603 (Twenty Six Crores Fifty One Lakh Seventy Four Thousand Six Hundred and Three only) equity shares of Re.1 each at a price of Rs.6.30-- promoters’ contribution being Rs.167.06 crore into equity shares of the company.

How to play the scrip of Lanco Infrastructure Ltd from now on? Join the Premium Service, to churn maximum benefits from the market. 

Wednesday, September 30, 2015

Karuturi Global Ltd (Rs.2.56) is the world's largest producer of cut roses, having a global present in Asia, America and Europe.

The company has its operation in India, Ethopia, Dubai and Kenya, diversified into agriculture, floriculture and food processing producing Pulses, Oil Seeds, Maize, Sugar, Cut Roses, Plants production and distribution, Gherkins, Baby Corn, Jalapenos and Bottled Pickles. With over 292 hectares under greenhouse cultivation, the company annually produces around 555 million stems of quality cut roses for exports to high-value markets.

The company has identified agri-business as its prime growth engine and taken up cultivation in Ethiopia on a big scale to become a major player in the global agri-product market, mentions its website.

Recently (August 17, 2015), ICICI Bank acquired 8.89% stake in this leading rose exporter (Karuturi Global Ltd). Therefore, accumulate the shares of the company on declines for some good returns over 6-9 months.

Wednesday, September 09, 2015

Gitanjali Gems Ltd: Buy on Declines
Gitanjali Gems Ltd was recommended yesterday at around Rs.33.5. The scrip today touched an intra-day high of Rs.39, before closing at Rs.37.75 in the BSE.

The company's consolidated Q1 net for the quarter ended June 2015 nearly tripled to Rs.28.05 crore when compared with Rs.10.15 crore in the corresponding quarter a year ago. Total income also surged by nearly 42 percent to Rs.2,952 crore from Rs.2,082 crore. 

The scrip should be accumulated on declines as it could cross Rs.60, by this Deepawali..........

Tuesday, September 01, 2015

ICICI takes 8.89% in rose exporter Karuturi for Rs.25 crore
New Delhi | 18 August 2015: ICICI Bank on Tuesday said it has acquired 8.89% stake in leading rose exporter Karuturi Global.

"ICICI Bank Ltd (India) acquired 72,000,000 equity shares by way of invocation of pledge," ICICI Bank said in a release on BSE.

As per the filing, ICICI Bank had acquired 8.89% shares in Karuturi on August 17, 2015.

At yesterday's closing price of Rs.3.43 of Karuturi, the deal is valued at over Rs.24.69 crore.

Karuturi Global is a leading producer of cut roses with operations spread across Ethiopia, Kenya and India.

With over 292 hectares under greenhouse cultivation, the company annually produces around 555 million stems of quality cut roses for exports to high-value markets.

The company has identified agri-business as its prime growth vertical and taken up cultivation in Ethiopia on a big scale to become a major player in the global agri-product market, says its website.

Courtesy: DnaIndia.com

Tuesday, August 25, 2015

Rasoya Proteins Ltd: Update
I had spoken with the sources of Rasoya Proteins Ltd last week and these are the findings: 
  • The company is planning to open the main plant between the period September, 2015-December 2015. This is now almost certain as the farmers are expecting good soya-bean crop, during this harvesting season; starting from September, 2015. 
  • The company is in constant touch with the banks to get their loans restructured. The management is also looking for other opportunities get the funds. 
  • The company could also come up with a preference issue for the promoters or infuse funds in a revamping operation.  
  • The FY15 Annual Report of the company is likely to get updated in the BSE Website, either by the end of August., 2015 or in the 1st week of September, 2015. Naturally, the share price of a company increases before the publication of the annual reports.
  • The company is expected to get good amount from the Insurance Claim (of Rs.34 Cr) towards Soyabean Stock Destroyed/Damaged due to fire; but it is likely to take another 3-4 months, get settled. 
  • This time the company could import seeds, if they are available cheap in the international market. 
  • The directors has appealed to the SAT, against the SEBI order, and a favourable verdict is expected. 
  • However, the fund shortage is the biggest challenge for the company at present. If this gets somewhat resolved, then the share price could cross Rs.10, within the next 12 months. 
Conclusion: Buy the shares of the company on all declines with a SL of Re0.20, for short term targets of Re.0.60 and Re.1.00. 

Wednesday, August 19, 2015

Gitajali Gems Ltd: Buy
CMP: Rs.42.30
Gitanjali Gems Ltd recently announced the Un-Audited Standalone results for the Quarter ended June 30, 2015.

The Company has posted a net profit of Rs.158.014 million for the quarter ended June 30, 2015 as compared to Rs.79.692 million for the quarter ended June 30, 2014. Total Income has increased from Rs.15343.864 million for the quarter ended June 30, 2014 to Rs.16873.250 million for the quarter ended June 30, 2015.

The Un-Audited Consolidated Results for the Quarter ended June 30, 2015 is as follows:

The Group has posted a net profit after taxes, Minority Interest and Share of Profit/(Loss) of Associates of Rs.280.522 million for the quarter ended June 30, 2015 as compared to Rs.101.536 million for the quarter ended June 30, 2014. 

Total Income has increased from Rs. 20815.980 million for the quarter ended June 30, 2014 to Rs. 29526.728 million for the quarter ended June 30, 2015.

Moreover, the consortium of bankers have assessed the working capital requirements and the sanctions are awaited with modified terms. The company's request for substitution of security and release of cash margin is accepted by the consortium of banks and on providing alternate collateral securities to banks, cash margins and collateral amount to Rs.55.98 Cr, would be released by the banks which will cover the overdrawing from Banks. The company's over drawn position in the working capital account as on June 30, 2015 amounted to around Rs.43.96 crores which is mainly on account of non servicing of interest and charges. 

Buy the scrip at Rs.42.30, for a short term target of Rs.64 and medium term target of Rs.72.
Do you know?
Educomp Solutions Ltd came out with a little better set of numbers for the June, 2015 quarter, speaking sequentially. It has reported a consolidated total income from operations of Rs.143.23 crore and a net loss of Rs.85.26 crore for the quarter ended Jun '15. For the quarter ended Mar 2015 the consolidated total income from operations was Rs.119.42 crore and net loss was Rs 153.00 crore.

Educomp is the largest Education Company in India and the only company spread across the entire education ecosystem. From schools to skills; over last two decades Educomp group has empowered over 30 million learners and educators across over 65,000 schools to imagine, think and create a better future. Founded in 1994, the company today has offices across India, in Singapore and in the United States.

The scrip was recommended to the Paid Members at around Rs.13.10, this week. Today, it closed at Rs.13.66, after touching an intra-day high of Rs.14.19; bringing smiles to the Paid Group members. 

Meanwhile, Rasoya Proteins Ltd (Re.0.26) is likely to start hitting upper circuits in the coming days, due to some latest positive developments (which was mentioned in the Paid Blog, today). 

Friday, August 14, 2015

Rasoya Proteins Ltd: Buy in Bulk

Rasoya Proteins Ltd (NSE Code: RASOYPR and BSE Code: 531522), a listed company is one of the major soyabean processors in the state of Maharashtra. It markets the Rasoya brand of Soya-oil, which off-late has emerged as a leading brand of edible oil in Maharashtra.

It is to be noted that low Soyabean output since the last two years has been one of the major reasons for the current depleted fundamentals of the company (apart from the GDR fiasco). 

Meanwhile, Rasoya Proteins Limited, which has a debt of over Rs.100 crore, had been classified as a NPA this April (2015) by a consortium of Banks, led by State Bank of India (SBI)--Bank of Baroda (BoB) is also having a share in the loan. However, during the last quarter, the company duly lodged Insurance Claim of Rs.34 Cr with the insurer towards Soyabean Stock Destroyed/Damaged due to fire which is yet to be realized.

The promoters have already indicated that low output and high prices of soyabean have hit the company's profitability, affecting the repayment of loans. 

However, better prospect of Soya-crop this season, has again raised the hopes of the shareholders. Also, the company is looking to operate its main plant with increased capacity, post-harvest season, beginning from September, 2015.

During the June 2015, the company came out with a slightly better standalone results, speaking sequentially.

The main activity of the company--Solvent extraction has not been carried out during the entire June, 2015 quarter due to non availability of Agro based Raw Materials, Soyabean Seed. As a consequence the Refinery and Captive Power Plant operation remained closed during that period. However, the plants for Value added products, viz. Fish Feed and Powder Lecithin  are in operation.  

The company's full Product Range Includes:
  • Soya Flakes / Grits :- Soya DOC, Soya Hi-pro DOC, Soya Full Fat Soya DOC / Meal - Enzyme active, Soya Grits Untoasted, Soya Flakes - Toasted - Food grade, Flakes MPDI, Full Fat Grits,
  • Soya Flour - Toasted / Untoasted, Food grade / Feed Grade, Hi-pro flour,
  • Soya Lecithin : Liquid and Powder,
  • Soya Textured Protein,
  • Soya Refined Oil,
  • Fish Feed.
It is a Reputed Manufacturer and Exporter of Soya Products, Wheat Flour, Fish Feed and Power generation in India. It has three Soya Processing Units with a total capacity of 1800 MT per day. It also has two refineries with capacity of 250 MT per day. Moreover, it possesses important certificates like: 
  • Cert ID NON GMO certificate,
  • Kosher certificate,
  • HalalCertificate,
  • ISO 22000:2005. 
Buy the shares of the company for a short term target of Re.1 and long term target of Rs.10. The general theory is that the share of such a company cannot trade below its Face Value even with these fundamentals. 
The investors/traders should note that it is a SPECULATIVE COUNTER and is ONLY SUITABLE, for high-risk-taking-individuals.
Brokerage Report
Green shoots: Positive IIP data + Controlled Inflation + Robust Indirect Tax Collection Numbers, Depicts Incipient Recovery
Factory   output   growth for   the   country   surged   to   3.8% in  June up  from  2.5% (revised) in  the  previous month...
Photo: Green Shoots Psychology
The  index  of  industrial  production  (IIP)  rose  to  a four-month    high    on the    back    of rebound    in    the manufacturing sector, which rose 4.6% in June compared to 2.9%  growth  in  the  year  earlier  period.  The  turnaround  in consumer  goods  and  consumer  durables  also  augured  well but the capital goods sector contracted after seven months, pointing  to  weakness  in  investment  conditions. 

The  data suggested  a  slow  pickup  in  demand  following  the  lowering of  interest  rates.  As  many  as  16  of  the  22  sub-sectors posted positive growth.

Retail Inflation remained within the RBI’s comfort zone at 3.78%...
Retail  inflation,  the  primary  gauge  for  the  Reserve  Bank  of  India, softened sharply in July to 3.78% from 5.40 % in June, much   below   the central   bank's   comfort   zone,   quelling immediate  upside  risks  arising  out  of  deficient  monsoon estimates.

Price of pulses remained a worry as they shot up nearly  23%  year-on-year  in  July,  but  food  and  beverages inflation remained benign at 2.9%.

Fresh Hopes: Another Rate Cut...

Belying  concerns  related  to weak  monsoon,  food  inflation softened.The   sharp   moderation   in   retail   inflation   is expected  to  trigger  calls  for  a  cut  in  interest  rates.  RBI  left rates unchanged in its policy review earlier this month. The latest  retail  inflation  data  is  much  below  the  comfort  level of RBI.