Thursday, February 19, 2015

Yesterday, I mentioned about buy recommendation for Jindal Steel and Power Ltd at Rs.156 for a target of Rs.162 from a brokerage house, the scrip today made an intra-day high of 200.80 before closing at Rs.195.30 up 26.24%. Now, I hear that HDFC Securities Ltd has recommended Jindal Saw Ltd at Rs.80-83, for a target of Rs.100. Today Jindal Saw Ltd made an intra-day high of Rs.84.50 before closing at Rs.83.40 up 7.89%. If you remember, the scrip was recommended at Rs.77-78, yesterday. 
Mangalore Refinery and Petrochemicals Ltd which was recommended at Rs.48.95 on 22 January, 2015 today made an intra-day high of Rs.64.40 before closing at rs.63.30 up 3.52%. In the process the stock reached all its short term targets. 
Today, the share of high-risk-high-gain, (BSE A-group edible oil producer and retailer) Rasoya Proteins Ltd (RPL) was recommended at around Re.0.60, for a target over Re.1. Rasoya Proteins Ltd is  having solvent extraction unit with vegetable refinery. It is also having a power generation plant which provides captive power and electricity to the solvent unit of the company. Over the years the company has become a leading processor of Soya seed in Maharashtra. The main products of the company are De-oiled cake, Crude oil, Refined Edible Soya oil and other various other consumer products. RPL International Trade FZE, situated in Sarjah is fully owned subsidiary company mainly engaged in the business of trading in edible oil. Last year (2014) there were media reports that the company has embarked upon Rs.400 crore expansion plan to expand the capacity of its manufacturing units across Maharashtra. While the company proposes to set up a plant for manufacturing ethanol from maize and other agro produce due to potential of increasing demand of the green fuel going forward under the mandatory blending with petrol, RPL is also looking to set up a large scale rice mill unit for processing of paddy. “With an investment of Rs 400 crore we are planning to expand edible oil and other business in agri sector. For the first time, we are entering into branded rice segment with non-basmati rice “Rasoya” brand sale. Also, we are exploring possibility to set up bran processing unit to produce rice bran oil with raw material procured from our own mill,” said Prashant Duchakke, Executive Director, RPL. Plans are underway to set up two tur dal processing units in Maharashtra to enter into branded oil segment. The company is currently, selling whole wheat floor under “Mejwani” brand in 1 kg, 5 kgs and 10 kgs pack size and caters to western Indian markets aggressively. Rasoya Proteins Ltd last year started selling of refined sunflower oil under the brand name 'Sunsafe' in various pack size. The first phase the Brand was launched in Vidarbh Region and some part of Marathwada, and later it was launched in the rest of Maharashtra. This move is in line with the diversification policy and expansion plan of the Company. The Company is taking rigorous efforts in marketing and brand building of Refined Edible Oil. The company does not have any accumulated loss for FY14. Today, the percentage of  Deliverable Quantity to Traded Quantity was whooping 54.36%, which gives some indication as what is happening in the counter. However, I again reiterate that this stock only for RISK TAKING INVESTORS--others should stay away from this counter. 
Today my recommended Firstsource Solutions Ltd touched Rs.34.75 intra-day before closing at Rs.34.30 up more than 8%. The next target for the scrip is Rs.37 on its way to Rs.42.
My recently recommended Unitech Ltd which fell today to Rs.17.35, intra-day recovered at the end of the day to close flat at Rs.18.15. Unitech Ltd, meanwhile reported a 32% increase in consolidated net profit at Rs.43.33 crore for the quarter ended December 2014 due to lower operational expenses and interest outgo. Its net profit stood at Rs 32.82 crore in the year-ago period. Finance costs declined to Rs 7.33 crore from Rs 28.06 crore in the year-ago period. Unitech said it has a healthy balance sheet with a net debt to equity ratio of 0.57. Net debt as of December 31, 2014 was Rs.6,300.84 crore. For the nine months ended December 31, 2014, the total income and net profit stood at Rs.2,661.67 Cr and Rs.34.20 Cr, respectively. The Book Value of the shares of the company is Rs.37.72. The correction is probably over for the scrip and the next targets are Rs.22-24.
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