Wednesday, March 04, 2015

Bharti Airtel, Idea, JSPL in Focus Today
[Editor: If you buy the shares of GMR Infrastructure Ltd now at around Rs.17.70, you will be entitled to the Rights Issue at Rs.15 per share. The shares of GMR Infrastructure Ltd will definitely go up, in the near future, due to NDA government's focus in the infrastructure space. When the RBI cuts the Repo rate, how do you expect the infrastructure stocks to behave, considering that most of these companies have high debt in the books? I am therefore expecting, the stock to move towards Rs.29-32, in the coming days; as with fresh funds, the company would be able to cut its debt further bringing down the finance costs to more manageable levels. In that case you will get profit from your original holdings which can be sold to buy the Rights issue share at a lower price. 
Meanwhile, GMR Infrastructure Ltd reported a consolidated net loss of Rs.638.33 crore for the third quarter ended on 31 December due to higher finance cost. The company posted a net loss of Rs.441.09 crore in the year ago period. However, GMR Infrastructure Ltd came out with a net loss of Rs.708.15 Cr for September, 2015 quarter. In that sense there is an improvement in its bottomline, speaking sequentially. Or this can be considered as a turnaround case. Income from operations during October-December quarter of the current financial year rose to Rs.2,761.39 crore from Rs.2,638.35 crore in the corresponding period of the last fiscal. Finance cost jumped to Rs.927.56 crore in the third quarter of current financial year from Rs.759.93 crore in the year ago period. During Q3FY15, the GMR Male International Airport Ltd (GMIAL) submitted claims of $803 million for the loss caused due to wrongful repudiation of the concession agreement for Male International Airport. GRM Infrastructure Ltd has interests in airports, energy, highways and urban infrastructure sectors. It has 15 power generation plants of which 8 are operational and 7 are under various stages of development. Very recently, GMR Chhattisgarh Energy, a group company of  GRM Infrastructure Ltd, won the Talabira-1 coal block in Odisha at a negative bid of Rs 478 a tonne after nine hours of bidding. Incumbent holder Hindalco of the AV Birla group lost the block in the process and has the option to sell the infrastructure developed by it to GMR.The Odisha mine, earmarked for the power sector, has extractable reserves of 28.77 million tonnes. 
Moreover, the second phase of auction of coal blocks is expected to start with aggressive bidding. However, the bidding in the second phase is not likely to be as aggressive as in the first phase, when the government invited bids for 19 operational mines. The government is offering non-operational but soon-to-be producing coal blocks in the second phase. Companies offered aggressive bids in the first tranche as those were ready-to-operate mines.
The bidding will go on till March 8 for 11 coal mines, for which about 45 firms including Jindal Steel & Power, Adani Power, JSW Energy, GMR Energy, Hindalco Industries, Reliance Cement and Jaiprakash Associates have technically qualified. During the e-auction starting Wednesday, the bidder companies will have to quote lower than the ceiling price to bag the mine reserved for power sector]
March 04, 2015: The Nifty opened higher on Wednesday as RBI cut lending rates by 25 basis points. Foreign investors continue to buy shares in cash market; on Tuesday they were net buyers to the tune of Rs 773 crore. Domestic investors were net sellers to the tune of Rs 304 crore. Market volume declined on Tuesday; in cash segment the volume was Rs 25,536 crore (11 per cent lower than Monday' volume) and in derivative segment volume was Rs 1.99 lakh crore (20 per cent lower than Monday's volume).

(i) Bharti Airtel, Idea, Reliance Communication: Telecom spectrum auction starts today. Auction will be done in 800, 900, 1800 and 2100 MHz band. Spectrum for 900 MHz band is most important for telecom operators. Idea and RCom have 92 per cent and 100 per cent of 900 MHz spectrum due for renewal respectively. 

(ii) GMR Infra, Monnet Ispat and Energy, Jindal Steel & Power, Sesa Sterlite: Phase two of coal auction is scheduled to start today. 11 mines with total capacity of 29.3 MT are on auction. Out of the 11 mines 6 are non-regulated and 5 are reserved for power sector. 

(iii) Tata Motors: Jaguar Land Rover US sales increased 14 per cent annually in February to 6,327 units.

(iv) Power Grid Corporation of India: As per reports the company will consider payment of interim dividend today. 

(v) McNally Bharat Engineering Company has allotted 25 lakh shares to billionaire investor Rakesh Jhunjhunwala at Rs 100 per share against Tuesday's closing price of Rs 91.10 per share. 

(vi) Gail India has cancelled its plan to set up Rs 3,108 crore LNG import terminal at Paradip, Odisha. 

(vii) Tata Power has commissioned its first 63 MW unit of Bhutan hydro plant. Power Finance Corporation shares go ex-dividend today. The company had declared an interim dividend of Rs 8.5 per share.

(viii) Power Finance Corporation shares go ex-dividend today. The company had declared an interim dividend of Rs 8.5 per share.

Courtesy: NDTV Ltd
Post a Comment