Tit - bits

#As expected the scrip of Hathway Cable and Datacom Ltd, hit the buyer freeze at Rs.21.40 on the news of the launch of JoFibre. If you remember the scrip was recommended in this blog around Rs.18.80/19.10 ranges.

#The stock of  P C Jewellers Ltd (Rs. 27.65) today fell with low volumes, indicating a probable end of the corrective phase. You should accumulate the scrip in every decline for short term targets of Rs.37/41.

It is India's 2nd largest Jewellery company and has a good number retail stores and hence you are not throwing your money in a drain.

Meanwhile, India February Gold futures rose on December 5 on the worries regarding an early settlement of Sino-US trade deal. Many eperts are suggesting  investors to use "Buy - on - dips strategy", as long as Gold trades above Rs. 38,000 levels.

#Buy the scrip of Wockhardt Ltd at around

Photo: Fierce Pharma

Rs.251/255 for short term targets of Rs.317/291. A deal is brewing in the short which can propel the scrip up-to Rs.500 levels in the medium term.

Moneycontrol last month reported that the drugmaker Cipla Ltd could be a front-runner to acquire select business segments of Wockhardt Ltd (Rs.251).

According to the sources,  Wockhardt Ltd, wants to reduce its debt burden and is seeking a valuation between Rs.2,400 crore and Rs.2,700 crore.

So far, its promoters have been infusing funds to ensure that the company doesn’t default on its debt repayment obligations. In FY19, they infused Rs.250 crore in the form of redeemable preference shares, in order to refinance the company’s outstanding preference debt.

The company, during the half year ended September 30, 2019, said it had repaid Rs.408 crore towards various long term debt obligations as per schedule.

Total long term outstanding debts as on September 20, 2019 were Rs.2,098 crore as compared to Rs.2,789 crore as on September 30, 2018 and Rs.2,469 crore as on 31st March, 2019.

Its gross debt to equity ratio as on September 2019 stood at 0.94. Promoters have so far pledged totally 5.06% of total share capital of the company (comprising of 56 lakh equity shares) on various dates which includes pledge created on 8.5 lakh shares on November 20 this year.

Wockhardt employs over 7,000 people and has a presence in the US, UK, Ireland, Switzerland, France, Mexico, Russia and many other countries. Around 72% of the company’s revenues comes from exports. Therefore, depreciation of INR Vs USD is positive for the company.

Bibliography: Moneycontrol 

Advantage Hathway Cable and Datacom Ltd

The much awaited Jio Fibernet plan is

finally launched sometime back and fiber-to-the-home (FTTH) is now available to one and all. The rental charges for Jio Fibernet plan is Rs.699 and it goes up to Rs.8499. The lowest tariff provides access to 100 MBPS. Most of the Jio plans provide access to all the Jio service.

It is pertinent to mention here that last time the Launch of JioFibre news took the scrip of Hathway Cable and Datacom Ltd (Rs.20.70) by storm and pushed it near Rs.40 within a few weeks; from around the same levels (I mean CMP) as of today. Keep watch.... 😀

#With Jio Fibernet, you can enjoy a range of services including Jio Fibernet cable TV, Free High definition TV, and free voice calls. As a Jio Fibernet customer, you will gain automatic access to Jio apps like Jio TV and Jio Cinema. 

Very soon, the Jio Fibernet customers can also enjoy a highly interesting service namely "First Day First Show" which will bring you the movies that are pending to be launched.

#Penetration of the television market in India is at 64% and is intensely competitive. Television networks such as Zee, Sun and Star continue to increase their programming hours, offer new content and TV shows in many genres. However, with cheaper internet and less expensive mobile data plans, more people are taking to watching video content online through mobile phones and tablets rather than on television. 

A recent KPMG-Eros Now report says nearly 87% of daily online video content is viewed through mobile phones. Over-the-top platforms such as Netflix, Amazon Prime and Hotstar, are trying to gain more eyeballs to challenge traditional TV platforms’ dominance, but this might not be as easy for them as it seems.

Data consumption in India has increased 32 times in the last five years to 9.06 GB. The KPMG Eros Now report says that Indians, on an average, spend 70 minutes a day per person on video platforms. That’s 8.2 hours per week on OTT platforms such as Netflix, Amazon Prime or Zee5.

Now with DATA getting very COSTLY, as Telecom operators have raised tariffs  up-to 40%, these viewers are likely to shift towards Cable TV and Multiplexes. This means more viewerships MSOs. 

Keep watch on Mukhesh Ambani controlled Hathway Cable and Datacom Ltd (Rs.20.70).

Bibliography : Hindu BusinessLine. 

Gold on Positive Footing

There are some recent news which hints at Gold price remaining buoyant in the short term. Let us check them one by one:

#Gold prices gained Rs.286 to Rs.38,265 per 10 gram in Mumbai bullion market yesterday,  on weaker rupee and following comments by the US President Donald Trump that a trade deal with China may happen only after 2020 US presidential election.

#The ensuring marriage season in India will keep the demand for the yellow metal on the upswing.

#India's gold Imports in November, 2019

Photo: FX Empire 

jumped 78% from a month earlier to the highest level in 5 months as jewellers in the world's second-biggest consumer of the metal restocked after a fall in prices, a government source said on Tuesday.

#The Commerce Minister,  Piyush Goel's assurance that he would work to lower import duty on gold from 12.50% is another ammunition in the hands of the bulls.

Meanwhile,  gold prices in Indian markets fell marginally today, giving some indication of its current buoyant mood; after a sharp rise in the previous session, tracking a similar move in global rates. 
On MCX, February gold futures prices were down marginally by 0.01% to ₹38,323 per 10 gram. Gold prices on MCX had surged nearly 1% in the previous session. Silver prices however edged higher.
On MCX, silver futures prices were up 0.17% to ₹45,372 per kg. In global markets, gold prices were today near one-month highs hit in the previous session.

Many of my blog readers have send me mails and whatsapp inputs,  asking me, whether they can enter TBZ Ltd (Rs.37.70) and P C Jeweller Ltd (Rs.27.30) or not at their CMPs.

Yes,  you can do that as I feel both the scrips sell Hallmarked Jewellery (a pre-requisite from 2021) and should give decent returns in the short term,  since this is the month of December (when small and mid cap scrips generally pick up seam)  the retail sector has started to gather momentum due to a push in domestic consumption. 

Tit - bits

#There are a couple of good news for the shareholders of P C Jewellers Ltd (Rs. 27.35), TBZ Ltd (Rs.37.70) and Rajesh Exports Ltd (Rs.675).
Commerce and Industry Minister Piyush Goel said he will work with gems and jewellery industry on their demand to cut import duty on gold and bring back businesses, which have shifted from the country.

Photo: Live Mint

Meanwhile, India's gold imports in November, 2019, jumped 78% from a month earlier to the highest level in 5 months as jewellers in the world's second-biggest consumer of the metal restocked after a fall in prices, a government source said.

#In another significant development,  the trial run of JioFibre has ended. Hathway Cable and Datacom Ltd (Rs.19.90) and Den Networks Ltd (Rs.39.20) are both Mukhesh Ambani (majority) owned companies.

According to a media report, it seems like, Reliance Jio has finally started providing its 4K Set-Top Box to the paid JioFiber users. Mukesh Ambani-owned Reliance Jio announced Triple Play broadband plans in September this year and also said the trial run of JioFiber has ended.
All the existing JioFiber Preview customers will be migrated to paid plans which start at Rs 699.

Hathway Cable & Datacom Ltd: Buy

At present, the entire telecom industry is saddled with dues of over Rs 7.8 lakh crore and therefore the hike in tariffs for prepaid connections, is expected to increase the average revenue per user (ARPU). 

Taking cues from here we can expect a hike in cable TV subscription rates, also in the near future. 

This Mukhesh Ambani group company is one of the leading players in the sector.  

Buy the shares of Hathway Cable & Datacom Ltd at Rs.20.10/20.50, for short term targets of Rs.24/25. SL: Rs.19.

Tit - bits

#The Indian Stock Market after a muted start in the Monday morning is likely to consolidate around the current ranges,  i.e. 12000 - 12103, with support coming at 11950. The impact of GDP data has already been factored in the current levels. 

#According to the latest shareholding pattern of P C Jewellers  Ltd (Rs.30.15) we see that most of the big investors have retained their stakes in the company as compared to the June, 2019 quarter. Eg. 

1.Combitic Global Caplet Pvt Ltd -- 1.21%

2. Karvy Stock Broking Ltd -- 1.80%

3. Life Insurance Corporation of India -- 1.76%

4. Matthews Emerging Asia Fund -- 1.57%.

Moreover,  the Central Bank of India has stated in its latest meeting that it is ready to go with a softer interest rate regime to give a forward kick to the sagging fundamentals of the Indian economy. 

It is pertinent to mention here that Lower Interest Rates, benefit non-interest yielding asset classes like GOLD. 

Also, there was a medium report that No jeweller will be allowed to sell gold jewellery or artefacts without hallmarking from January 15, 2021. 

It further stated that the  government will issue a notification by mid January next year, giving the jewellers one year time to register with Bureau of Indian Standards for obtaining the Hallmarking (certification of purity). This is music for the established players as it is likely to weed out many players in the me - too,  unorganized sector. 

PC Jeweller Ltd which was established in 2005, has its business focused in Manufacturing, Retailing and Export of Jewellery.

Tit - Bits

1. Today,  P C Jewellers  Ltd (Rs.30.20)  touched Rs.31.85 on the  upside riding the retail story, before closing at Rs.30.20. With the GDP growth according to the new method nosediving to 4.50% (old method -- 3%), and uncertainty prevailing,  the natural tendency to invest in gold and other precious metals comes to fore.
However, if the scrip is able to cross Rs.32/32.50 region with good volume then we can think of higher targets. I shall speak with my sources next week.  

Many investors ask me why I didn't post in MMB for years.  The reason is I don't go to such a filthy place,  managed by Moneycontrol manipulators, who pose as admins and take decisions according to their whims and caprices. Moreover most inputs I saw recently, are of junk category.  So,  not interested. 

2. The scrip of Reliance Capital has fallen to around Rs.15.15, while Reliance Infrastructure Ltd closed at Rs.26.40. It is interesting to note that while Anil Ambani is speaking of Rs.35,000 debt payment by ADA Group, post downgrade by CARE in September certain lenders have initiated acceleration of various facilities. According to a media report, this happening has triggered consequential demands for immediate payment of amounts that were otherwise due and payable in a phased manner over the next eight years till March 2028, as per the original terms of lending. Therefore,  with no clear visibility in the near term horizon,  I would suggest the investors and traders to stay away from both the counters.

Imp: I would probably recommend a new scrip on Monday,  after 10 pm.  Those, free members who are interested to take cues from my views can visit my blog on that day. 

Vakrangee Ltd: Update 

CMP: Rs.40.70

It is interesting to note that in the last year, Vakrangee paid out 90% of its profit as dividends. 

However,  the dividend has been cut by more than 20% on at least one occasion historically. 

During the past ten-year period, the first annual payment was ₹0.025 in 2009, compared to ₹0.25 last year. 

Dividends per share have grown at approximately 26% per year over this time. 

Having said that, it has to be understood that dividends haven’t grown at precisely 26% every year, though this is a useful way to average out the historical rate of growth.

But one issue which is a matter of concern is that Vakrangee’s EPS has shrunk at 31% a year over the past 5 years. 

Such kind of move generally provides instability to a stock price,  and this was evident in its erratic movement during the last few years. 

But then,  with a strong net cash balance, Vakrangee Ltd's shareholders may not have much to worry about,  from a dividend perspective, as far as near term investment is concerned.

Vakrangee is a technology company based in Mumbai, which provides banking, insurance, e-governance, e-commerce, and logistics services.

Tit - bits

#The scrip of Future Consumer Ltd (Rs. 26.70) today moved to Rs.27.25 and reached its first target.  Hope most of you have booked some profits. To know what to do next,  you need to join any of my services.  It does matter which country you belong to,  as long as you have an internet connection. 

#The investors / traders having a penchant for risk can buy the "MAD - stock" named, Vakrangee Ltd (Rs.39.75). The promoters are rumoured to be playing in the scrip and hence it has the capacity to move up-to dizzy heights.

It is pertinent to mention here that the share shot up from Rs.50 - something in 2015 to more than Rs.500 by January 2018.

• Life Time high: Rs.515.00 (24-Jan-18).
• Life Time low Rs.0.46 (09-Mar-09).

From the above figures you can understand the quantum of returns the scrip of Vakrangee Ltd can deliver to an investor over a given period.

Dinesh Nandwana, promoter of Vakrangee, bought 31 lakh shares of the company through open market purchases in last two sessions and raised his stake to 5.93% from 5.64% as of June 30.

Now, according to a report published in Bloomberg Quint, the company is planning  to revamp its 45,000 retail outlets or Vakrangee Kendras and install an ATM in each, at a capital investment of Rs.900 crore. The 2020 goal is 75,000 Kendras, each with an ATM.

Just by the way, India has a total 2,21,703 ATMs across all banks, as on March 31, 2019 as against 2,22,300 ATMs at the end of 2017, recording a decrease of 597 ATMs during the period; according to a report released by the Reserve Bank of India.
The SBI group had 59291 ATMs at end of 31st March, 2017. Vakrangee is set to beat ’em all.

It is interesting to note that Vakrangee once told Bloomberg Quint that P C Jewers Ltd was its business partner; which the latter denied probably due to regulatory hassles. 

I feel it would not be an exaggeration to mention that many of my portfolio clients have taken positions in the scrip today. 

#The scrip of MRPL (Rs.47.60) is consolidating around Rs.47/48 ranges. It has good future prospects. You can buy in declines and hold with the SL mentioned earlier. 

#The share of United Bank of India Ltd (Rs.9) is testing the immediate support levels. This well known PSB,  is a safe scrip,  considering the current positive developments in the company. 

Imp: If you have a portfolio size of around Rs.3 - 5 lakhs,  then you can use my more than 2 decade (1 decade: 10 years) of experience and go for profit sharing scheme (70:30). It doesn't matter which country you belong to,  provided you have a Demat Account and an Internet connection. If you are a new comer and is perplexed, watching the volatility of the shares,  then this is the best option for you. 

The markets have started to show some positive vibes and it will be better if you take an immediate dive in select scrips. 

P C Jewellers Ltd: Buy

The investors with short to medium term

perspective can buy the shares of P C Jewelers Ltd near the CMP of Rs.30.30, for short term targets of Rs.41/66. SL: Rs.27.
The Book Value of the shares of the company is Rs.99.67 and the Market Cap is only Rs. 1,196.86 Crore

4 (Four) Principal Triggers:

• The US has imposed a 10% duty on Chinese gems and jewellery items from September 1, 2019, which will indirectly help the Indian diamond sector.  The items that will come under this tariff net are diamonds, cultured and natural pearls, rubies, emeralds, and sapphires, synthetic precious stones, including diamonds, silver jewellery, gold necklaces and neck chains and religious jewellery.
• The NDA government has increased duty drawback rates for gold and silver jewellery, a move that would make Indian exports from these sectors more competitive in the global market. This notification shall come into effect from November, 2019. The government's decision to raise the rates would help in increasing the competitiveness of Indian gold and silver jewellery, according to market analysts. Under duty drawback, exporters get a refund of all duty and taxes which were paid for the inputs against the exported products. 
• Some months back PC Jeweller Ltd (PCJL) said that its board has given approval for the demerger of the company's export division and amalgamation of the same with its wholly-owned subsidiary PCJ Gems & Jewellery Ltd. The scheme will enable creation of an independent listed company with replica shareholding structure with the 'export division' business. Domestic division with domestic business (remaining business) would continue to be carried on in the demerged company, the filing added. Most denergers add value to the shareholders wealth.
• Fears of a global economic slowdown, continuing trade and tariff war between the United States and China, and geo-political risks could help the price of gold to sustain at higher levels.

Tit - Bits

#Today the shares of Future Consumer Ltd moved to Rs.26.45 before  closing at Rs.25.65. Tomorrow you can book some profits near the 1st target. 

#MRPL (Rs.48.15) is likely to get merged with HPCL in 2020. Those who have a slightly longer term view, should buy this scrip and hold. It is a sure shot profit giving stock for the medium to long term. 

#The stock of SAIL (Rs.38.60) is consolidating at the current ranges. You can keep holding with the Stop Loss mentioned earlier. 

#Tomorrow,  I'll recommend a short term momentum counter by 10 am in the morning in this blog. Stay tuned. And don't,  play in my recommended counters without the use of appropriate stop loss. 

Those who have portfolio size of around Rs. 3 - 5 lakhs can seek my help,  to make money on profit sharing basis (ratio --> 70:30),  with new theories and result orient approaches.  You also don't need to open a fresh Dmat account. You can continue with your existing trading/demat account and trade through them, on SHORT TERM basis. 

Give a try  -- I'm sure you will love my razor sharp methods of making money from the stock market, using my more than 20 years of practical experience. If you are not satisfied with the results,  you can put out of the agreement at any time -- No Bondage.

Send me a mail at: suman2005s@rediffmail.com or sumanm 2007s@gmail.com.

Tit - bits 

#The scrip of Steel Authority of India Ltd which was recommended at around Rs.37, last week, in this blog made a high of Rs. 40.35 today.  You can book some profits and keep the rest with a SL of Rs. 38.50.

#Those who have a time frame of 2/3 months can buy the stock of Future Consumer Ltd (Rs.23) and hold....
It belongs to the reputed Future group of companies and would get benefited as consumer demand starts to improve from Q3FY20, due to festive and winter demands. 

Mangalore Refineries and Perrochemicals Ltd (MRPL): Buy

CMP: Rs.48.40

Short Term Targets: Rs.61/66.

Book Value: Rs.61.21

Dividend Yield: 2.06%

SL: Rs.45

Introduction: Mangalore Refinery and Petrochemicals Limited (MRPL) is a schedule ‘A’ Miniratna, Central Public Sector Enterprise (CPSE) under the Ministry of Petroleum & Natural Gas. MRPL is located in a beautiful hilly terrain, north of Mangaluru city, in Dakshina Kannada District of Karnataka State (India). The 15 Million Metric Tonne Refinery has got a versatile design with complex secondary processing units and a high flexibility to process Crudes of various API, delivering a variety of quality products.

MRPL, with its parent company Oil and Natural Gas Corporation Limited (ONGC), owns and operates ONGC Mangalore Petrochemicals Limited (OMPL), a petrochemical unit capable of producing 1 Million Tonnes of Para Xylene. OMPL, situated in the adjacent Mangalore Special Economic Zone ( MSEZ), is integrated with the refinery operations. Para Xylene from OMPL is sold in the export market. MRPL has transformed itself into a large and complex refinery with phase-III capacity expansion and has emerged into a much stronger player in the industry.

Shareholding Pattern: Oil And Natural Gas Corporation Limited (OMGC)  holds 71.63% of the shares of the company while Hindustan Petroleum Corporation Limited (HPCL) holds 16.96% of the shares of the Company.

Financials:
Mangalore Refinery and Petrochemicals Ltd (MRPL) registered a loss of ₹574.45 crore in the second quarter of 2019-20, as against a loss of ₹81.16 crore in the corresponding period of 2018-19. The company said that low GRM was because it had to shut down operations after a minor landslide in its premises due to heavy rains in Dakshina Kannada district. Gross revenue from operations stood at ₹15,262 crore during Q2 of 2019-20, as against ₹17,733 crore in the second quarter of 2018-19. Hence,  it is a special case and may not be replicated in the following quarters.
Throughput at the refinery during the second quarter of 2019-20 was at 3.68 million tonnes (3.91 million tonnes). Its BOD also approved the proposal to raise funds of up to ₹3,000 crore through issue of non-convertible debentures (NCDs).

Three Prominent Triggers :
#On account of water problem, some months back, a unit of MRPL had suspended operations. Heavy rains also had affected its production capacity. However,  at present all the units are functioning normally, whose positive effects would be seen in the following quarters.

#Because of a slump in demand for diesel in the indigenous market, Mangalore Refinery and Petrochemicals Ltd (MRPL) has increased its export of diesel by 20% since sometime. Because of decreasing demand, stock of diesel with the company rose abnormally, as a result of which it had to increase its export. Diesel from here goes to countries like Singapore and Malaysia. Surprisingly, diesel had also been exported to a USA-based company from here, company sources revealed.

#Since INR Vs USD ratio is on the side of the company,  we can look for good export revenues in the coming quarters.

Conclusion: 
Going ahead MRPL’s profitability to improve on account of:

• Improved product mix,
• Better refining margins,
• Economies of scale,
• Forward integration – Polypropylene plant,
• Various tax benefits, etc. 

MRPL has set-up the next milestone and is planning to enhance its refining capacity to 25 mmtpa (19% higher than targeted) as against an earlier target of 21 mmtpa and current capacity of 15.5 mmtpa. Additionally, the company is planning to scale up its petrochemical capacity to boost its margins. The Company will invest Rs.110 bn in this expansion.

The expansion is seen as a major margin driver as it will help the company to process cheaper, heavier crudes into high-value products like diesel, liquefied petroleum gas and propylene.

Moreover,  increase in complexity to +9 NCI (from 5.5 earlier) implies that distillate yield (including propylene) will expand, going forward.

The stock has started to show upward mobility after a long hiatus and fall from grace.  You can buy the scrip at around Rs.48.50 for short term targets of Rs. 61/66/72. Please keep a strict SL of Rs.45.

Bibliography:
#The Economic Times
#http://eresearch.co.in, etc

United Bank of India Ltd: Buy

CMP: Rs.8.80
Book Value: Rs.14.24
Market Cap: Rs.6573.71 crore
Industry P/E: Rs.174.85

Targets: Rs.17/21.

Photo: Business Standard

Introduction:  United Bank of India is a public sector bank. Government of India holds 96.83% stake in the Bank (as on 30 September 2019).

Financials: United Bank of India reported a spectacular set of numbers for the Q2FY20. It came up with a profit of Rs.124 crore for July-September period against loss of Rs.883.2 crore in the same period last year -- a brilliant performance indeed.

Net interest income grew by 74.60% year-on-year to Rs.773 crore in the quarter ended September 2019.

Gross non-performing assets (NPAs) as a percentage of gross advances declined 38 Bps sequentially to 15.51% and net NPA as a percentage of net advances dropped 31Bps QoQ to 7.88 percent in Q2FY20.

Provisions and contingencies fell sharply to Rs.436.4 crore in the September quarter against Rs.571.6 crore in the June quarter and Rs.1,481 crore in Q2FY19.

The bank paid a tax of Rs.38.3 crore for the quarter against a tax credit of Rs.392 crore in the same period last year.

In August this year,  in a press briefing, the Indian Finance Minister announced that Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and United Bank of India will be merged. The combined entity will be second largest PSU bank in India with business of Rs.17.94 lakh crore. It will have second largest banking network in India witb 11437 branches.

The scale and synergy will benefit through high CASA and lending capacity combined in consolidated bank. The merger will result in large cost reduction potential due to network overlaps. Cost saving and income opportunities will arise for JVs and subsidiaries.

All three banks share a common CBS (core banking software), Finacle, which will enable quick realisation of gains.

United Bank of India announced that the Central Government vide letter dated 19 February 2019 has communicated its decision in to invest Rs.2839 crore in the equity capital of the Bank by preferential allotment of equity shares.

The bank received amount of Rs.1666 crore from Government of India on 27 September 2019 towards capital infusion under the PSBs recapitalization plan which is lying in the "share application money pending allotment" as on 30 September 2019.

Conclusion: The share fell from a price of around Rs.140 to the CMP of Rs. 8.90. It is a risk free investment at the present price. Buy at least  10,000 shares of United Bank of India and keep holding. Since, the industry P/E is very high,  it can give huge return for a small net profit over equity. There is no need to keep SL as it is an investment grade scrip. 

Sources:
#MoneyControl.com
#Capitalmarket.com

Some of my recent recommendations & Conversation with Blog Visitors:

• Central Bank of India recommended at

  

  Photo : Internet 

  around Rs. 17/17.50 moved to Rs. 24.75.
• Sarda Energy and Minerals Ltd recommended at around Rs. 167 made a high of Rs. 187 - plus. 
• Reliance Capital Ltd recommended at around Rs. 17.50 made a high Rs. 24.75 and is hitting continuous Upper Circuits since then. 
• Reliance Infrastructure Ltd recommend at around Rs. 35 made a high of Rs. 46 - plus and is continuously hitting Upper circuits since my recommendation. 
• Den Networks Ltd recommended at around Rs.47/48  has closed at Rs.44.40 yesterday after my write up in Facebook.  The stock though fundamentally strong has seen selling in tandem with the selling in the media sector on the fear that Mukhesh Ambani could create disruptions in the sector akin to his Telecom blockbuster; with his mega project piggybacking on optic fibre.  If you are not a risk taking investor then you can exit the scrip on market rallies and wait for my next recommendation in this blog. 

Priority Graph or Recommendation hierarchy:

#Portfolio Investors  (those who take direct suggestions from me and invest with a 70:30 profit sharing ratio. 

#Premium Life Time  Members.

#Premium Members (Yearly). 

#Free members on Whatsapp. 

#Free recommendations in Social media  (Facebook,  etc)  and in this blog. 

Hence,  you can see from above that those who come with a portfolio of around Rs. 3/5 lakhs and seek my help in churning money from this very difficult market get the maximum priority.

No matter where you stay in which part of the world (US, Canada,  Australia,  UK,  France,  Dubai,  Saudi Arabia,  etc,  etc), you can still join me and avail of my guidance and make a decent amount.  

If you have lost money earlier,  don't worry you can still cover up your losses and come out victorious; if you have that deep passion and that extra zeal --  what matters more or the most is your never giving up attitude,  nothing else. 

****Now Portfolio Investors, don't need to open fresh demat accounts in my recommended brokerage house/s, as was the rule earlier.

You can continue with your existing Demat/Trading accounts and still be a part of my Portfolio Investors' Team. 

Therefore,  if you want to join my services please do contact me immediately  -- we can utilize these two months,  trade in both ways and eke out a good profit. Don't delay or procrastinate!! Take you decision now!! 

For lifetime (30 years @ the rate of less than Rs.3,000 per year) membership of my investor club, the rates are:

#Rs. 75,000 (without  F&O)

#Rs. 1,00,000 (with  F&O)

There would be a 15-20% hike in the subscription fees post 31st December,  2019.

Interested investors /traders can send me a mail at:

1. suman2005s@redifmail.com
2. sumanm2007s@gmail.com.

All the best.... God Bess you all....!! 

Den Networks: September Quarter Results

DEN Networks Ltd posted a consolidated quarterly net sales of Rs.332.42 crore in September 2019, a 1% rise from Rs.310.37 crore in the corresponding period last year, according to reports. Net profit stood at Rs.14.72 crores, up from Rs.(-)28 crore in the previous year.

EBITDA is up 63.79% from Rs.55.51 crores in September 2018, to Rs.90.92 crore in September 2019.

DEN Networks Ltd's earnings per share (EPS) has risen to Rs.0.30 from Rs.1.44 in September 2018.

Note: Due to some problem in my mobile and also on account of severe viral attacks on my computer system,I have not been able  to access the internet and social media since some days. Hope the things will get streamlined within a couple of days.

Den Networks Ltd: Buy

CMP: Rs.47.60
Targets: Rs.66/72
SL: Rs.44
Reliance Industries plans of rolling out fiber broadband services​:

On its 42nd annual general meeting (AGM), on August 12, 2019, Reliance Industries Ltd's​ (RIL) chairman and managing director Mukesh Ambani announced details related to the launch of Jio Fiber service, the triple play of broadband, TV and landline.

Jio Fiber users will get free subscription to several OTT platforms. Reliance Jio Infocomm (‘Jio’), a subsidiary of RIL, has built a world-class all-IP data strong future proof network with the latest 4G LTE technology.

Earlier this year, RIL acquired stakes in three leading MSOs, Hathway, Den and GTPL, who have direct relations with over 30,000 local cable operators (LCOs).

Supreme Court verdict on Thursday that hugely widened the scope of adjusted gross revenue of operators and saddled them with mammoth Rs.92,000-crore dues, dealing a huge blow to Vodafone Idea and Bharti Airtel even though RJio was left relatively unscathed. This implies that the verdict is positive for Reliance Industries and in turn to RJIO.

Reliance Jio has a stake in Den Networks Ltd. Hence, it is now a Mukhesh Ambani Group Company.

Sharda Energy & Minerals Ltd: Buy

Sharda Energy & Minerals Ltd: Buy

CMP: Rs.167.50

Targets: Rs.203/220

SL: Rs.161.

Sarda Energy & Minerals Limited (SEML), incorporated in 1973, is the flagship company of Sarda Group. 

It has a Promoters’ holding of 71.9%.

It is a  vertical integrated producer of steel with captive iron ore. 

It is also a manufacturer​ and exporter of niche grade manganese based ferro alloys.

It generates captive power from Waste heat & coal.

It also has interests in Hydro power projects through SPVs. 

It is a TWO STAR EXPORT HOUSE, recognized by the Ministry of Commerce & Industry, Govt. of India. 

SEML is one of the lowest cost producers of steel (Sponge Iron, Billets, Ferro Alloys, Mining, Power, Pellets, Iron Ore,Wire Rod Mill, Eco Bricks) and one of the largest manufacturers and exporters of ferro alloys in India. 

Headquartered in Raipur, Chhattisgarh, the company merged Chhattisgarh Electricity Company Limited (CECL) with itself in 2007 with a vision to becoming a leading energy and minerals company. 

Buy the shares of Sarda Energy and Minerals Ltd at around RS.167/168, with targets mention above. I'm expecting the share your double by 3/4 months time frame.

Book some profits in Central Bank of India LTD at around Rs.19.95.

My yesterday's recommend stock, has hit another buy freeze today. Try tomorrow -- I will paste the name here if it is out of the Circuits.

I will recommend another momentum counter this week. Keep an eye on this blog and make money.

Note: If you have lost money earlier, then arrange a fund of around Rs.3/4 lakhs and come to me. I will guide you to cover your losses, with new techniques.

I don't run any PMS service.

Central Bank of India

Central Bank of India: Buy

CMP: Rs.17.30

Book Value: Rs.46.08

Face Value: Rs.10

Target: Rs.27/31

SL: Rs.16.30.

Introduction: Central Bank of India is a commercial bank. The bank’s segments include Treasury Operations, Corporate/Wholesale Banking, Retail Banking and other Banking business. 

Shareholding Pattern: The promoters holding in the company stood at a whooping 89.46%, while Institutions and Non-Institutions hold 6.67% and 3.87%, respectively; leaving very little stocks in the hands of retail investors. This adds value to its shares.

Financials: For the June, 2019 quarter, the total income of the company came as Rs.65,18.37 crore, while its net profit for the same quarter came as Rs.115.71 crores, showing a turnaround.

Triggers: Public sector lender, Central Bank of India informed recently that it has raised Rs. 500 crore through Tier II bonds.

The tier-II bonds under Basel III is a hybrid subordinated instrument with equity-like loss-absorption features. These rated instruments are expected to absorb losses once the “point of non-viability” (PONV) trigger is invoked. ICRA has assigned ‘A+’ rating to the proposed bond offering.

#To meet regulatory norms for capital adequacy, Central Bank of India plans to raise Rs.2,000 crore capital through tier-II bonds.

#Central Bank will be one of the two public sector banks that will continue to work as an independent bank to strengthen national presence.

#The BSE group ‘A’ stock of face value Rs.10 has touched a 52 week high of 37.95 and 52 week low of Rs.17.70, which indicates that there is minimum diwnside in the scrip.

#After the corporate tax cut bonanza, the clamour for personal income-tax reductions to boost demand has got louder and we could see some reflection of it in the upcoming budget.

Analysts at Bank of America Merrill Lynch expect the government to cut income tax to stimulate demand if the ongoing Diwali festival demand turns out to be really weak.

Since, Banks are a proxy to an economy, this sector would be one of the biggest beneficiaries of tax cut. Why? Because strengthening of corporate balance sheets will have a direct positive bearing on their loan books.

Conclusion: The stock of Central Bank of India looks attractive at the current price and is must buy for short to medium term Investmenta.

Market Commentary

Winning Strokes

As expected the domestic benchmark indices corrected sharply today, amid broad based selling pressure. Banks, auto and metals tumbled.

The S&P BSE Sensex, plummeted 503.62 points or 1.29% to settle at 38,593.52. The Nifty 50 index shed 148 points or 1.28% to close at 11,440.20.

US political developments and tougher decibels  from the Washington and Beijing on trade deal also spoiled investors sentiment. The market breadth was quite weak. On the BSE, 762 shares rose and 1755 shares fell. A total of 128 shares remain unchanged.

I had given a sell on Nifty Bank at around 29810 for a target of  29550. The Bank Nifty closed at 29,586.05 down 597.05 points.

I had given a sell on the markets yesterday, and I believe we will slowly glide down towards 9200 as the P/E is quite high.

Meanwhile, the initial irrational euphoria created by the media, post FM's cut of corporate tax has started to cow down.

When the Private Consumer Index is at 4 year low, it would have been more worthwhile if the FMO arranged for measures which gave more money in the hands of the consumer -- though a cut in GST for certain goods, is a laudable step from the GST council headed by Bengal FM, Dr.Amit Mitra.

Ms.Nirmala Sitaraman looks a tad better in style and action than her predecessor, late Arun Jaitley. But she looks a bit inexperienced as far as the finer points of macroeconomics are concerned. She therefore needs the help of an expert on the same, standing at a kissing distance from her.

What will the poor lady do, except trying her level best, when she is entrusted with the job of mending a severely tortured and deeply wounded economy by the unscrupulous pair of NaMo -- Amit Shah?

Also, all those corporate honchos who trumpeted demonetization, as a one stop steroid for curing multiple economic plagues should now tender a public apology to the people of Nation.

And what about Narendra Modi's 50 - day cure fake rhetoric during those poignant days?

Anyway, what I feel is since the market is undecided, it is better to stay on sidelines till it gives a more pronounced signals on the either side.  However, the shorts can be taken as the current fundamentals doesn't support the current levels of Sensed or Nifty.