Friday, July 18, 2014

Nitin Goenka and Mahdeep Kapoor
Allied Digital Services Ltd, recommended today, to the Paid Service Members, at around Rs.20.60-21, today hit the upper circuits, in the closing trade. The scrip could be hitting non-stop upper circuits during the next few trading sessions. 
Resurgere Mines and Minerals Ltd, after a brief correction has again bounced back, hitting upper circuits today, in the BSE. Later it turned out to be only buyer. The punters are probably taking positions in the scrip before the  much awaited start of operations in the company's bauxite mine in Maharashtra, post monsoon. If the mining really starts there, then the scrip would cross its book value of Rs.26.49. It is to be understood that in a BULL Market everything moves up, and I feel this scrip will also spurt ahead, considering that its peer group company SVC Resources Limited, with much worse fundamentals, is trading at Rs.22.60 (if we consider the face value of the scrip to be Rs.10, instead of Re.1). 
Rohit Ferro Tech Ltd, after a sell call at Rs.14.20, today fell further, and closed at Rs.12.76. The sell call was given on the source based news that the commencement of operation in its 67 MW captive power plant will get further delayed, due to tight liquidity conditions. The scrip could fall below Rs.12 in the coming days. 
The Nifty was given a buy today, and as expected it closed in the Green. The FII/FPI on 18th July, 2014 were net buyers to the tune of Rs.574.47 Crores. As long as 7650-7600 is not broken on the downsided, the longs are a hold. However, the action would now be concentrated in the small and mid cap counter, many of which are still trading near their 52-week low, eg. Goenka Diamond & Jewels Ltd (Rs.3.38).  Incorporated in 1990, Goenka Diamond & Jewels Limited is in the business of cutting and polishing of diamonds and manufacturing and retailing of diamond jewellery. Goenka's product profile includes rings, earrings, pendants, bracelets, necklaces, etc. which are manufactured using polished diamonds, precious and other semi precious stones which are set in gold. Company has its own diamond processing unit at SEZ in Surat and in Mumbai. Goenka Diamonds retail its diamond jewellery under two brands CERES and G WILD. Company retail high end diamond jewellery under the CERES brand targeting the top-end segment of the society while G WILD focuses on internationally designed diamond jewellery targeting the youth. It came up with an IPO in March, 2010 at an issue Price of Rs.135-Rs.145 per equity share (Face Value: Rs.10). According to Business Standard, 24 March, 2010: "The initial public offer (IPO) of Goenka Diamond & Jewels, which opened for subscription on Tuesday, was over subscribed on the first day with institutional investors putting in sizeable bids".  M. B. Diamonds, a Limited Liability  and Goenka Diamond & Jewels DMCC, Dubai. Goenka Dimond and Jewels Ltd's subsidiary, M.B. Diamonds, in Russia, is one of the largest diamond producers. This allows the company to source rough diamonds, its primary raw material, directly through diamond auctions held there, which reduces the raw material costs. The subsidiary also has a unit to polish diamonds. The entire output of the subsidiary — both processed and rough diamond — is sold to the company. Goenka Diamond & Jewels Ltd (Now its Face Value: Re.1 and not Rs.10) has now appointed a new company secretary, and a board meeting to declare, Q4FY14 results could be on the cards. 
IVRCL Ltd today closed at Rs.24.10 down 2.03%. You should buy this scrip like Fixed Deposit and keep holding. Earlier, there were media reports that the Corporate Debt Restructuring Empowered Group of the Reserve Bank of India, at its meeting held, approved the debt recast proposal submitted by IVRCL. The restructured package covers Rs.7,350 crore. About 20 banks led by State Bank of India were involved in the restructure process. Under CDR, banks typically increase the repayment period of loans to stressed borrowers, offer a moratorium and reduce lending rates. “This is a significant development and comes in as a big relief. This will enable us to take off again by implementing various projects which were stuck due to funding issues. We have a strong order book of Rs.20,000 crore and will implement them as per plans,” R Balarami Reddy, Chief Financial Officer, IVRCL, said. Explaining the terms, he said the company will have access to a priority debt of Rs.175 crore, additional cash credit of Rs.200 crore, Rs.1,400 crore non-fund credit and Rs.300 crore of letter of credit. All of them will be interest-free from December 1, 2013, and have a moratorium of 28 months on term loans. The funded interest term loan is to be paid within eight years after the moratorium. It will carry an interest rate of 11.25%. The company’s interest burden had piled up and the cash flows were impacted due to slowdown in project execution. IVRCL was, therefore, forced to knock at the CDR cell. IVRCL had divested its stakes in three road projects in Tamil Nadu to a Tata group company Tata Realty and Infrastructure Ltd, and is in negotiations to divest stake in a couple of other projects, including a Chennai desalination plant and road projects. 
Accumulate Western India Shipyard Ltd at the CMP of Rs.2.37. as some good news is on the anvil. 
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