Wednesday, July 27, 2016

Unitech Ltd as expected bounced today from Rs.6.93 to close at Rs.7.24 in the BSE. The scrip made an intra-day high of Rs.7.35, but could not sustain that levels. The stock should make new 52-week highs in the coming days. This optimism stems from the fact that there were recent media reports which said: Residential real estate sales rose 8% in the April-June quarter, compared to a 3% decline in January-March, suggesting that the market which has seen sluggish growth over the last 2-3 years, is finally seeing some revival signs. Sales across nine key Indian cities - Mumbai, Pune, Noida, Gurgaon, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad – rose to 55,550 units in first quarter of this fiscal from 51,500 units in fourth quarter of 2015-16, according to a report by real estate portal PropTiger. The revival in sales was primarily driven by an uptick in demand in Bengaluru, Pune and Mumbai, which together accounted for 61% of total sales across the 9 cities in the first quarter of fiscal 2017, the report added  The investors should add the scrip on all declines and wait for it to close above Rs.7.30, with good volumes. 

The Share of Reliance Communications Ltd today rose to Rs.52.30 in the BSE before closing at Rs.51.55. Yesterday, the stock was reiterated a buy, with short term targets of Rs.60-61. As mentioned a number of times earlier, the launch of Reliance Jio is positive for the shareholders of Reliance Communications Ltd. Meanwhile the ET, reported on 8 July, 2016 that the  US private equity firm Brookfield Asset Management has emerged, a serious bidder to buy Reliance Communications' stake in its tower unit. RCom and Aircel have been in exclusive talks since December on a much-anticipated amalgamation in what would be the first in-market telecom merger of national scale in the country. 

As per terms of the pact, RCom will hive off its wireless business into a separate arm, which will be combined with Maxis-owned Aircel, with both companies having equal ownership. The new $6 billion entity proposed will remain unlisted in the initial years and operate under a new brand name. 

RCom is now unofficially the 3rd largest Telecom player in India, and we would soon see its reflection in the share price. Therefore, add the scrip on all declines.

The stock of JSW Energy Ltd as expected corrected to Rs.77.50 intra-day before closing at Rs.78.55. Yesterday, it was suggested to exit the counter, either with minimum profits or with no profit no gains. You should leave this stock for the time being, unless it finds its levels. 

The stock of Syncom Formulations Ltd today rose to Rs.3.49 in the BSE before cooling down to Rs.2.86, intra-day and then closing at Rs.3.20. The scrip should be slowly moving towards my next target of Rs.4.20, provided it closes above the strong resistance zone of Rs.3.40-3.50. 

The stock of Karuturi Global Ltd, whose fundamentals are looking great even after their misadventure in Africa, could give multi-bagger returns going forward. The stock made an intra-day high of Rs.1.67, before closing flat at Rs.1.60 in the BSE. The company is fighting a tough battle in the African continent and the recent visit by Narendra Modi, could end their owes. However, this stock is only for risk taking trader - others should stay away from this counter. This is infact high-risk-high-gain counter. Meanwhile, the Karuturi Flower Farm owner reportedly said last month that he will clear his debts and reopen the farm, which has 2,600 workers.

Businessman Ram Karuturi said the farm will be up and running in a couple of months, once court cases are closed. It was put under receivership last year.

It is to be noted that in early 2014, CFC Stanbic Bank had placed Karuturi Global Ltd under receivership after it failed to service a Sh340 million (Sh34 Cr) loan. However, the flower firm’s management protested vehemently against the move, saying the land, valued at Sh8.2 billion, is worth much more than the loan amount. Now let us do some simple calculations:
Sh8.2 billion = Sh820 crores.

Therefore, the price of the farm's land is ~24.11 times the value of the loans, taken by Kenya’s biggest flower firm, Karuturi Global Ltd. Can you imagine? In September 2014, one of its parent flower trading subsidiary in the Netherlands was declared bankrupt. writes: 

“Touch me, then you will see the power of India”, declared.....Sai Ramakrishna Karuturi in a recent interview in direct challenge to the Thugtatorship of the Tigrean People’s Liberation Front (T-TPLF).

However, an interesting part of this episode is that the said farm land is registered under the ownership of Rhea Holdings Ltd/ Surya Holdings Ltd/ Yeshoda Investments Ltd used for flower farming in Naivasha, Kenya. “I am hoping they [liquidators] can find someone to buy air,” Mr Karuturi told The Standard, adding, “there is nothing in there to be sold.” Or in other words, Karuturi and T-TPLF have weaved a convoluted and tangled legal web for themselves in their Gambella Gambit. Did you get me?

Karuturi Global Ltd once boasted of 126 hectares of flowers under greenhouses and a further eight hectares of open air rose cultivation comprising more than 20 popular rose varieties. The firm also prided itself in having significant recognition in key European export markets and comprehensive contracts of sale in 2015 with customers in the main market segments. Karuturi produced 580 million roses per year from its operations in Kenya, Ethiopia and India with estimates showing that one out of nine roses bought in Europe came from the Karuturi farm. The company, few years back acquired more than 300,000 hectares in Ethiopia to produce food for foreign markets. Last year on on August 17, 2015, ICICI Bank acquired 8.89% shares of Karuturi Global Ltd, at a deal is valued at over Rs.24.69 crore.

Jindal Steel and Power Ltd which was recommended around Rs.58-60, today touched my final target of Rs.90 (intra-day- Rs.90.35). The investors should keep holding the scrip till Rs.67, is broken on the downside.

Those who are holding the shares of Lanco Infratech Ltd (Rs.5.05) should exit the scrip on intra-day highs, as it is not performing as per expectations. They could enter Reliance Communications Ltd, after exiting from this scrip.

Those who are holding the shares of BHEL(Rs.148.50), can look for further appreciations of their holdings, as the stock is likely to kiss Rs.163, once Rs.152 is taken on the upside.

Those who are still holding my old recommendation Vedanta Ltd (Rs.168.45) from around Rs.60, should look for targets of around Rs.186-187, once Rs.172-173 is crossed with good volumes.

Those who have a portfolio size of around Rs.4-5 lakhs-plus and is looking for good appreciation over their investments can contact my firm. This is the time to make good money from the share market, when the trends can be identified and exploited. Though 30% appreciation on the capital invested is considered as very good return from any share market, you will get more than that, sitting in the comforts of your home. This market is for the experts and not for amateurs. Also, those who will trade through my associated brokerage house, with a minimum portfolio size of Rs. 1.5 lakhs will get my Premium Service worth Rs.15, 000 per year, FREE OF CHARGE. Therefore, without delay, mail me at: or, if you are really interested in making some quick bucks from the Indian Stock Markets, which are in a roll right now. 
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