My recommended Central Bank of India Ltd, recovered today, like many bank scrips and touched Rs.73.50 intra-day before closing at Rs.73.10. If there is a Repo Rate and CRR cut, Banks, Real Estate, Construction, Infrastructure, Auto, and those under debt burden will rally as high cost debt would not be replaced with low cost ones. Look for an immediate target of Rs.79 (100 DSMA). The cross-over has already taken place, and the scrip is ready to move up.
My recommended IVRCL Ltd today closed at Rs.25.50, near the day high of Rs.25.65, which is a positive sign. The book value of the shares is Rs.73.98, which means in case of liquidation of the company, one would get Rs.73.98 per share. Recenlty, IVRCL Ltd informed BSE that it has Bagged an order valued Rs.378.36 Crores. It has an order book of around Meanwhile, Rs.25,000-plus crore. However, around Rs2,000 crore is needed towards equity infusion in the next three to four years, according to some media reports. According to a report by Kotak Institutional Equities Research, last year (2012), the firm plans to raise around Rs.900 crore through compulsory convertible debentures in the near term. Still, it would have to raise the balance through internal accruals or asset sales. Towards this end, and to reduce debt on its books, IVRCL has been striving to sell land parcels and some of its BOT road assets, as per some market news. “Monetization of BoT asset would help in resolving the funding needs, which will give better execution visibility to the transportation order book that stands at Rs.9,200 crore as on June 2012,” says a report by Emkay Global Financial Services Ltd. At the current price of around Rs.25.50 apiece, there seems to be limited downside. CLICK HERE.