SumanSpeaks: The Information Super Highway

WINNING STROKES : THINK DIFFERENT H.E. Sh. Shivraj V Patil, Hon’ble Governor of Punjab conferring LMA- Vardhman Award for Entrepreneur of the year 2011 to Mr. Neeraj Saluja, M.D, SEL Manufacturing Company Limited  Tulip Telecom Ltd today closed flat at Rs.7.62. There are rumous in the market that the company would probably get the 1st installment of loan by 15th November, 2013. The company is also tentative to come up with results by the 2nd week of November, 2013.  In the telecom space, barring Bharti Airtel, FIIs have been net buyers in other stocks—Tulip Telecom, Idea Cellular, Reliance Communications and Tata Telecom .  One should go for bulk buying before it start to shoot up. I would suggest everyone to buy at least 10, 000 shares of the company and hold for 3-4 months. If you c an hold Fixed Deposits which gives meagre  returns of around 10-11% per year for 3-4 years, then what is the harm in holding this scrip for 3-4 months, when the retur...

Market Outlook : Brokerage Report ( Edited ) The Indian benchmarks ended the day on a negative note on October 28, 2013. Markets opened in a positive zone and soon touched the high of the day. Then indicies moved down throughout the day and even breached yesterday’s lows. As has been during last week, even in the last hour of trade, there was no fresh buying seen and indicies closed towards the low of the day. The Sensex was down 113.24 points to close at 20570.28 while the Nifty lost 43.80 points to 6101.10. This was ahead of RBI's second quarter monetary policy review on 29th October, 2013.  Expectations on the street are largely in favour of repo rate hike as RBI governor Raghuram Rajan's focus remains to be inflation. Coming to yesterday's market, the midcap index and the small cap index closed in red with the loss of three-forth of a percentage point and half a percentage point respectively. On the sectoral front, all the indicies except three, closed in red. Th...

WINNING STROKES : THINK DIFFERENT B F Utilities Ltd recommended around Rs.131-132, today hit the buyer freeze at Rs.230.60. However, I got many of your mails that you missed the counter.  Yes, this counter is always unpredictable and very volatile, so it is always risky to put safe money here. Those who have bought the scrip are lucky and now should book profits.  Today, to the surprise of everyone, Future Retail Ltd (Rs.71.95) crashed in the bourses and closed below some of its key moving averages (but still 21 DSMA > 50 DSMA). I immediately called on the sources, to find out if there is something untoward happening, but all confirmed nothing of that sort. Therefore, it is widely felt that the shares of Future (Pantaloon) Retail Ltd. probably reacted to the bad results of its group company, Pantaloons Fashion Retail Ltd (BSE Code: 535755) but what they forget to see is that while in Future Retail Ltd the PROMOTERS HAVE INCREASED THEIR STAKE / HOLDINGS in the Sep...

Future group may sell assets for debt management, expansion Click Here 22nd October 2013: The Kishore-Biyani controlled Future Group may sell off more assets from its portfolio of brands and stores in a bid to manage its debt better and undertake further expansion. Speaking to Express, Future Retail Ltd’s joint managing director Rakesh Biyani said, “After a period of consolidation, we do continue to hold investments for sale purposes. If we get the right market valuations and we feel the need to use the proceeds for debt management as well as expansion, we could consider leveraging our investments”. Currently, the Future Group has three key retail subsidiaries, Future Retail and Future Lifestyle Fashions (FLFL) and Future Ventures, all of which own the group’s retail ventures as well as joint ventures with international brands. For instance, Future Retail owns the supply chain, the Big Bazaar, Food Bazaar, the furnishing store Hometown, the electronics chain eZone and Capital Fi...

Future Retail Ltd : Buy on Dips CMP : Rs.77.60

Future (Pantaloon) Retail Ltd ( Rs.77.50 ): Research Report

Future Retail Ltd ( Rs.78.35 ): Buy Annual Report: FY13

PSU bank shares rally on Rs 14,000 crore fund infusion; SBI gets largest share of Rs 2000 crore NEW DELHI: Shares of public sector banks rallied on stock exchanges on Wednesday after the government firmed up its capital infusion plan announced in the budget. State-run State Bank of India, the country’s biggest lender, will get the largest share of Rs2,000 crore from the Rs14,000 crore apportioned by the finance ministry. IDBI BankBSE 4.23 % and Central Bank of IndiaBSE 0.84 % are second on the list, with both getting an infusion of Rs1,800 crore.  “Bigger banks are getting more,” said financial services secretary Rajiv Takru, adding that state-run banks would have room to leverage this capital to raise more funds from the market. SBI’s shares closed up 2.45% at Rs1,716.3 on the NSE even as the benchmark CNX Nifty dropped 0.4%.  Bank of BarodaBSE 4.58 % was up 5.21%. NSE’s PSU bank index was up 2.69% on Wednesday. Takru estimates that state-run banks can raise up ...

Government to infuse Rs.14,000 crore equity in banks The government Wednesday said it will infuse Rs.14,000 crore equity capital in 20 public sector banks during the current financial year. "The Government of India has approved infusion of Rs.14,000 crore in the PSBs during financial year 2013-14, through preferential allotment of equity in its favour,” the finance ministry said in a statement.  The country's largest lender State Bank of India will get Rs.2,000 crore equity capital from the government. The Central Bank of India and IDBI Bank will get Rs.1,800 crore each.  The government will provide Rs.1,200 crore equity capital to Indian Overseas Bank, and Bank of India will get Rs.1,000 crore.  Punjab National Bank and Union Bank of India will get Rs.500 crore each. United Bank of India will get Rs.700 crore, Vijaya Bank Rs.250 crore, and Syndicate and UCO Bank will get Rs.200 crore each.  Other lenders that will be benefited from the gove...

Have all approvals for QIP ; need to raise Rs 900cr : IOB  Speaking to CNBC-TV18, M Narendra, chairman, Indian Overseas Bank says that bank requires Rs 2100 crore capital and with the government giving it Rs.1200 crore, it will need to raise less than Rs 900 crore from QIPs.  Calling the Indian government’s plan to infuse capital in PSU banks an encouraging move, M Narendra, chairman, Indian Overseas Bank  says the bank will need less than Rs 900 crore through qualified institutional placement (QIP).  Speaking to CNBC-TV18, Narendra says that bank requires Rs.2100 crore capital and with the government giving it Rs 1200 crore, it will need to raise less than Rs 900 crore from QIPs  Additionally, Narendra says that the bank has already received all the approvals for the same. “We had already got these approvals in the board. Now we will only have to discuss government placement and preferential allotment in the Extraordinary General Meeting (EGM)....

Indian Overseas Bank : Buy CMP: Rs.49.60

Technical textile industry to reach $36 billion by 2016-17 [ Editor : The Indian textile and apparel industry started to tread a high growth path after the of abolition of quota regime, which helped the industry to shift the manufacturing focus towards Asian countries; known to have strong raw material base and abundant cheap labour. The size of the Indian textile industry and apparel industry is expected to reach US$ 221 billion by 2021 from $52 billion in fiscal 2007.  SEL Manufacturing Company Ltd (Rs.3.80)  is vertically integrated multi-product textile  company, manufacturing various kinds of Knitted Garments,  Terry Towels, Knitted & Processed Fabric and various kind of  Yarn with production facilities located at Ludhiana and  NawanSheher in Punjab, Baddi in Himachal Pradesh and  Sehore in Madhya Pradesh.  SEL Manufacturing is setting up a huge technical textile manufacturing facility with a daily capacity of 90 tonne with an in...

WINNING STROKES : THINK DIFFERENT Chart of SEL Manufacturing Company Ltd Tulip Telcom Ltd as expected the hit the buyer freeze in the opening trade. The company has a good order book and the release of funds by the banks, within the next few days will solve the temporary financial crunch. The telecom sector has started to look well once again and these blue chips form the mid caps are expected to steal limelight in the coming days.  SEL Manufacturing Company Ltd closed at R.3.80 in the NSE, making the stock look more attractive on the charts. The company during the last few years, has developed mind boggling assets and it is really astonishing how the scrip is trading at such a discount to its book value of Rs.42.67, when its peer group company Arvind Ltd, is trading at ~1.2 times its book value of Rs.89.11. Can you believe that it is trading below its EPS of Rs.4 This time the scrip would not only make new 52-week highs but will also move past Rs.10, in the ne...

Sutlej Textiles, India’s largest spun-dyed yarn manufacturer Sutlej Textiles and Industries Ltd (Rs.158.50), the leading Mumbai-based textile producer, was incorporated in 2005 out of a corporate restructuring exercise in which the textile divisions of Sutlej Industries Ltd. (SIL) and Damanganga Processors Ltd. were demerged to create a single cohesive company. With a value-chain extending from yarns, fabrics to home textiles, Sutlej has been one of the most aggressive investors in its sector. The company invested Rs. 915 crores on modernisation, upgradation and cutting-edge technologies in the last 10 years, one of the highest investments in the niche end of India’s yarn business, resulting in an increase in the company revenue to Rs. 1,680.24 crores, i.e., 9.32 per cent, and profits to Rs. 76.97 crores (142.58 per cent) in 2012-13. With four manufacturing units across Jammu and Kashmir, Rajasthan and Gujarat, the company possesses one of the widest portfolios across spun-dy...

India Today Business Wizards Award for SEL Manufacturing chief Mr. Neeraj Saluja, Managing Director, SEL Manufacturing Company Ltd. has been conferred the India Today Business Wizards North Award. The Award was presented by the Chief Minister of Punjab, Sardar Parkash Singh Badal, on March 29 at a function organized in Chandigarh by India Today. The Chief Minister gave away India Today Business Wizards North Awards to several entrepreneurs of Punjab. He also released a book celebrating their success titled ‘Business Wizards North’ and stated that the industrialists and the State Government should work together to improve the key sectors, including education and healthcare. The Award for Mr. Neeraj Saluja is in recognition of his dynamic entrepreneurial qualities. He is known for his business acumen, determination and perfectionism. His passion for excellence has sculpted a special position for the SEL Group and it has emerged as a leading integrated textile conglomera...

SEL Manufacturing Company Ltd : Annual Report for FY13

SEL Manufacturing Company Ltd : Ready To Explode Moving Averages Analysis : All the short term moving averages have turned bullish for the scrip of SEL Manufacturing Company Ltd. Also, the current price of the scrip at Rs.3.70, is above both its 200DEMA and 200DSMA, which gives further confidence to the bulls.  21DEMA--Rs.3.76 50DEMA--Rs.3.64 100DEMA-Rs.3.58 150DEMA-Rs.3.54 200DEMA-Rs.3.53 21DSMA-Rs.3.81 50DSMA-Rs.3.54 100DSMA-Rs.3.48 150DSMA-Rs.3.51 200DSMA-Rs.3.57 SEL Manufacturing Company Ltd (SEL) is a leading vertically integrated textile conglomerate having a turnover of over Rs.2300 crore. SEL is operating in various textile sub-segments having facilities right from spinning and knitting, processing of yarns and fabric, to the value added products viz. terry towels and ready-made garments.  SEL Manufacturing Company Limited was ranked 14th as per Total Income in the Textiles Sector in Dun & Bradstreet's India's Top 500 Companies 2012.  CL...

Tulip Telecom Ltd : An Old Report But Could Provide Some Direction

Tulip Telecom Ltd : Annual Report For FY13 In case of Tulip Telecom Ltd (Rs.7,71), its flagship Data Center commenced operation only in 4QFY12 against earlier guidance / project of 3QFY12. This has probably brought in some trouble in the company in the short term.  L ast year (CY12) Tulip Telecom Ltd booked orders worth Rs.6 bn (Rs.600 Cr) for 5 years for 30,000 sq ft. The company has achieved financial closure for its funding requirement of Rs.5bn over a 3-year period. It has already got visibility of ~40% of usable capacity. Tulip Telecom Ltd's Fibre segment is enabling higher wallet share per customer driven by expanded product and service offerings. Therefore, the key triggers for the stock would be:  Stake sale in data center subsidiary. It debt increased during the last couple of years, basically, due ongoing expansion in both NLD & Data Centre space. Higher-than-expected growth in business. Till February, 2012, its order book was whopping Rs.2700 Crores. ...

WINNING STROKES : THINK DIFFERENT Glodyne Technology Ltd and Geodesic Ltd hit their (consecutive) buyer freezes. The IT companies, would gain handsomely from the depreciation of the INR Vs USD. But I am more bullish on Glodyne Tech Ltd (Rs.13.20) and Allied Digital Services Ltd (Rs.20.60). Another stock which I am very bullish is Tulip Telecom Ltd (Rs.7.71), as the company is expected to get funds form the banks very soon, as a part of the restructuring deal. However, some of the employees say, that there is as such no financial crunch and its business is going fine, the company wants only to trim down old staff and replace them with new ones, with much lesser salaries (probably). Some of them probably seems to suggest that the liquidity problems in the company (Tulip Telecom Ltd) is artificial and it was basically aimed at getting concessions on the bank loans. Whatever, may be the case, the scene has suddenly turned bullish. In September, 2013, the Telecom stocks were rallying s...

Why Britannia Industries, Sun Pharma and Manappuram Finance have outperformed peers enjoying strong growth, the companies are likely to see their share prices rise In recent months, stocks of Infosys, TCS, Hexaware, HCL Tech, Tech Mahindra and Wipro have risen smartly on the back of a strong recovery in the IT services sector. And when a sector undergoes a slump, there is a sell-off. Banking stocks are currently down in the dumps as the sector navigates rocky terrain. However, some stocks can outperform their peers in the sector by a significant margin. Why does the market have such a contrasting view on stocks? Is the company placed better than its peers? Or is the share price driven by speculation or rumours rather than fundamentals? We look at three stocks that have bucked the trend in their respective sectors and analyse the causes. Britannia Industries Until recently, FMCG stocks were being lapped up by investors as defensive bets in an uncertain market. In the past ...

Crest Animation Studios Ltd : Exclusive Clip : ‘Alpha and Omega 2′ Behind-the-Scenes Oct 4th, 2013: On October 8, the holiday-themed sequel to Crest Animation’s Alpha and Omega hits DVD and Blu-ray shelves thanks to Lionsgate Home Entertainment and exclusive retail partner Walmart. The new CG animated Alpha and Omega 2: A Howl-iday Adventure follows wolves Kate and Humphrey and their cubs–two additional films with the same lupine characters are set for 2014. In Howl-iday, Kate, Humphrey and their cubs Stinky, Claudette and Runt are happily preparing to celebrate their first winter holiday together when Runt, the smallest, mysteriously disappears. The rest of the pack must go on a journey across the wilderness to find and bring back Runt before the festivities begin. The DVD ($19.98) and Blu-ray Combo Pack ($24.99) include brand new special features, including a making-of featurette, fun wolf trivia and an “Are you an Alpha or an Omega?” quiz (plus sneak peeks at upcoming adve...

Will Turnaround strategy  work for Crest Animation Studios Ltd ?  Jul 22, 2013:  One the country's largest animation companies is on the brink of closure. On Saturday, Crest Animation Studio, Ghatkopar, asked most its employees to leave as it was unable to pay them. The 250-odd animators however refused to quit and demanded they be paid their dues, which have been pending for the past nine months, leading to a stalemate between the cash-strapped firm and its equally broke employees.  In the evening, employees finally left for the day but not before they roped in Maharashtra Navnirman Workers Sena to keep a check on the managment and ensure they did not shut shop overnight, leaving them high and dry. It all started with managaing director of Crest Seemha Ramanna coming to the heaquarters at Raheja Plaza in Ghatkopar on Saturday and announcing that company would not be able to sustain the team of 250-odd animators.  "She told us that 90 per cent of us ...

Kavveri Telecom Ltd : An Old Research Report Kavveri, founded by Mr. Shivkumar Reddy in the year 1996, is mainly into design, development and marketing of Rf products and antennas. The company has in-house research and development facility driven by 60 member core R&D team. Its key manufacturing facility is located in Bangalore, India. During FY12, the company also started contract manufacturing activity which has helped in its export sales growth. During last six years, Kavveri has acquired five companies in order to broad base its product portfolio and expand its geographical reach. The company has also ventured into the In-Building Solution business in September 2008, through its 51% owned subsidiary, KTIL. This is a capital intensive business model requiring significant upfront expenditure by KTIL on infrastructure development.