DO YOU KNOW?

Coal is one of the essential fuels for any cement plant. Jaiprakash Associates Ltd (Rs.26.20) had been procuring the coal to meet its requirements through various sources including import and was also developing Mandla North Coal Block in the State of Madhya Pradesh as an additional source.

However, in an unfortunate event, the Hon’ble Supreme Court of India cancelled various coal blocks including the aforesaid Mandla North Coal Block and ordered auction of the same. 

But, in the recently held e-auctions, Mandla North  was won by Jaiprakash Associates Ltd, at Rs. 2,505. This will give an additional leverage to the Jaiprakash Associates Ltd. 

Moreover, with the CPI coming down, the chances of another round of Repo rate cut is on the cards; this gives positive vibes for the shares in the construction/real estate and power sector, apart from other like Automobile. My old recommendation in the real estate space, Anant Raj Ltd (Rs.46) is already up more than 5% in today's morning trade.