Wednesday, October 03, 2012

Chart of Bartronics India Ltd
My recommended Country Club India Ltd hit the buyer freeze in the opening trade. If you remember, the scrip was repeatedly recommended around Rs.6-7 and asked to be accumulated on all declines. Those who have heard me, will now make millions. 
Bartronics Ltd is consolidating at around Rs.25.50--Rs.26.40, after the company finished the re-structuring. It is one of those companies who would benefit from appreciation of the INR against the USD due to FCCB issue and also due to FDI in retail; as it is India's leading players in Barcoding, which is used extensively by Retailing giants. Meanwhile, in a move to cut down wastage, duplication and leakages and enhance efficiency, Prime Minister Dr. Manmohan Singh has given a major push to transfer individual benefits from the government directly into the bank accounts of beneficiaries. This is to be done in a fast-track, accelerated mode to be achieved in a time bound manner. The idea is to move to a completely electronic Cash Transfer System for the entire population, the Prime Minister's Office (PMO) said in a statement on 28 September 2012. In order to accelerate the process, which currently is being tried in pilots on a small scale and whose results are very encouraging, the Prime Minister has set up the architecture for moving to electronic Cash Transfers leveraging Aadhaar, the PMO said. With the rapid rollout of Aadhaar, now covering 20 crore people and rapidly growing to 60 crore, and with the National Population Register covering the other half, it is possible to move to a system of transferring cash benefits directly to the poor, the PMO said. A Cash Transfer System can be used for transferring cash benefits such as NREGA Wages, Scholarships, Pensions, Income support of other types and Health Benefits. Electronic Transfer of Benefits (ETB) is a simple change as the transfers are already taking place and the only modification that would be involved is a movement from a paper based, cash driven system to an electronic direct transfer system, the PMO said. Cash Transfer System would improve targeting, reduce corruption, eliminate waste, control expenditure and facilitate reforms, the PMO said. It is to be understood that in the last fiscal, Bartronics India Ltd was doing the enrollment process, in case of Aadhar Programmes, where the revenues were pretty small. However, as far as the card issue process is concerned (cards issue process is the next stage), it is expected to give a revenue boost in terms of contributing towards the overall growth of the company. So, if it does happen in FY13, then the management hopes that this process alone would contribute more than 30-35% of the topline growth of Bartronics India Ltd. Therefore, it is a must for every portfolio and the current price of around Rs.25.50 is dirt cheap. 
Anant Raj Industries Ltd hit the buyer freeze in the late afternoon trade. But I  think for the time being the stock is looking to hot to handle. Those who are still holding should book some profits tomorrow. 
My recommended Shree Asthavinayak Cine Visions Ltd touched Rs.2.40 today before closing at Rs.2.34, up marginally. I would suggest all to enter the counter before the release of Dabangg 2 in December, 2012, when the stock I think would be trading near Rs.5. The P/E of the scrip is 7.80 while the industry P/E is 30.07. Moreover, don't look at the results of June, 2012 quarter, since the company did not have any major launch at that time. 
Kohinoor Broadcasting Corporation Ltd hit the buyer freeze in the mid afternoon Trade. The stock was asked to be accumulated repeatedly, after the company started broadcasting from its up-linking centre in North India. 
My recommended Indiabulls Securities Ltd touched Rs.9.60, before closing at Rs.9.44 up 4.44%, intra-day. Most of the brokerage stocks are expected to well in the coming days due to the buoyancy in the share markets. I am expecting Indiabulls Securities Ltd to cross Rs.10, in the next few trading sessions. 
Pantaloon Retail Ltd which was recommended around Rs.137-138, today touched Rs.219, before closing at Rs.214.05. V2 Retail Ltd also opened in the green and closed  in the green. FDI in retail would help these companies to go for merger and acquisitions. Moreover since the large multi-nationals would be operating in big towards, these companies are expected to shift to smaller towns and make million from the new found behaviour of the Indians.