Monday, December 29, 2014

Today HDIL moved to Rs.71.45 in the BSE before closing above the break-out point. The scrip rose today due to twin reasons: (i)  the Bombay High Court staying a lower court order asking police to conduct a probe against the company with regard to alleged irregularities in a slum rehabilitation authority (SRA) project and (ii) anticipation of an early rate cut by the RBI in view of the fall in the CRUDE OIL prices. The company’s current debt on a consolidated basis stands at Rs.3,400 crore, which is being serviced regularly. Earlier in an interview to a business channel, Sarang Wadhawan, vice chairman & managing director, HDIL said that the management hopes to cut down the debt of the company by 25 percent to Rs.2300 crore by March next year. He further added that Maharashtra government's move to increase FSI on affordable housing is a big positive for the company. HDIL is one of the largest land bank owners in the Mumbai Metropolitan Region (MMR) region. This policy of affordable housing is aimed at providing free of cost affordable housing to the government in lieu of additional FSI. This additional FSI has moved on from one to three. However, out of that component 2.25 goes towards the residential segment and 0.75 goes towards the affordable housing segment. It is a big increase in the MMR region because most of the other undeveloped areas around Mumbai, they were lacking in FSI. There the FSI was restricted in those areas. It is a good policy for HDIL primarily because a couple of its projects in Vasai, Virar where its component was about 50 million square feet of affordable housing has moved up to about 75 million square feet. It will be one of the largest affordable housing township projects in India. The scrip which has a book value of Rs.248.81 and P/E of only 9.81 against the Industry P/E of 26.59,  is expected to cross Rs.100, within the next couple of months. 
My recently recommended A2Z Maintenance Engineering Services Ltd today hit the UPPER CIRCUITS in the BSE and closed at Rs.18.55 today, thus achieving the first target of Rs.18. Join the Paid Service or trade through my recommended brokerage house/s, to make most from this bull market.
Jaiprakash Power Ventures Ltd today moved to Rs.12.29 before closing at Rs.12.09. The the debt of the Jaypee group will come down substantially in the following quarters, after the company decided to divest around Rs.20, 000 crores of its assets. On a closer analysis, one can notice that the deals made by Jaypee Group (JSW-Jaiprakash, etc) were just liability transfer from one balance sheet to another. The book value of the shares of the company is Rs.21.54.
ARSS Infrastructure Projects Ltd today moved to Rs.38.50 before closing at Rs.37.35, up 3.61 per cent. With the improvement of health of the Indian Railways and the government of India taking a number of steps to shore up the construction sector, the scrip is all set to cross Rs.50, within a short time----accumulate it on all declines.
Sudar Industries Ltd, recommended in this blog, yesterday at Rs.37.95, today touched Rs.39.90 intra-day before closing at Rs.38.25.
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