Jewellers, bullion trade worried about additional curbs on gold imports

November 15, 2014: Indian jewellers and the bullion industry are perturbed that the Reserve Bank of India (RBI) may consider introducing additional restrictions on the import of gold. This follows reports that gold imports in the month of October 2014 rose several-fold to 150 tonne levels from the year-ago figure of 25 tonnes.

"If additional curbs on gold imports are announced, it would have a huge adverse impact," Haresh Soni, Chairman, All India Gem & Jewellery Trader’s Federation (GJF), which represents interests of more than 30,000 members, said. "High imports were a one-off owing to Diwali and the fourth quarter traditionally sees the highest demand and high level of imports are a consequence of that."

In 2013, in order to address the alarmingly high current account deficit (CAD), the government had hiked import duty on gold to 10 per cent and introduced the 80:20 scheme where nominated agencies could import gold and provided they exported 20 per cent of the consignment. This was relaxed in May 2014 when start and premier export houses were allowed to import gold and RBI allowed banks and the agencies to provide gold for domestic use to the industry.

"No doubt the government is concerned about the impact on CAD and the need to contain it," Mr. Soni said. "We will be informing our retailer-members to voluntarily stop sale of coins and bars. Last year, we had resorted to the same measure and that met with good results."

However, Bhargav Vaidya, bullion analyst and committee member of India Bullion & Jewellers Association (IBJA) felt it seemed unlikely that new curbs would be imposed. "Last year when restrictions were introduced, gold prices were higher and crude oil prices are now about 30 per cent lower. India’s balance of payments position is thus not uncomfortable and I do not expect any new restrictions."

An 'unintended consequence' of the government’s gold import curbs was the rise in smuggling and the grey market for the precious metal, according to P.R.Somasundaram, MD – India, World Gold Council (WGC) "as 10 per cent import duty is a huge arbitrage." He estimated that gold smuggled into India would total around 200 tonnes in calendar 2014 out of a demand of around 850-950 tonnes.

Courtesy: The Hindu

Insecticides India Ltd: Makes a New 52-week High

Insecticides India Ltd (Rs.862.55) which was recommended around Rs.280-282 on 28 April , 20114 in this blog, made a new 52-week high on 14 November, 2014. The scrip was asked  to be accumulated on all dips.  The stock of the company, earlier touched all its short and medium term targets. Congratulations to all those who have made money in this scrip. 

It is to be noted that the Agro-chemicals manufacturer Insecticides (India) Ltd (IIL) has reported a 66 per cent increase in net profit for the second quarter ended September 30, 2014 at Rs.22.93 crore against Rs.13.84 crore a year ago. The IIL board has recommended one bonus share each against two shares for its shareholders.

Jindal Saw Ltd: Makes a New 52 week-High

Jindal Saw Ltd (Rs.98.70) which was recommended around Rs.75.95 on 20 October, 2014 made a new 52-week high of Rs.99.50 on 14 November, 2014. 

The investors should book at  least 80% of the profits and hold  the rest with a SL of Rs.91.70 (all the short term targets have been achieved) and invest in ARSS Infrastructure Projects Ltd. Congratulations to those who could  make money in this recommendation of mine. 

ARSS Infrastructure Projects Ltd: Buy on dips

Incorporated in 2000, ARSS Infrastructure Projects Ltd is engaged in construction of Railway Infrastructure, Roads, Highways, Bridges and Irrigation Projects in India. 

ARSS have business activities in the zonal jurisdictions of East Coast Railway, South Eastern Railway, South East Central Railway, Southern Railway and North Western Railway. ARSS also engaged in the railway construction projects, which includes earthwork, major and minor bridges, supply of ballast, sleepers, laying of sleepers and rails, linking of tracks etc. ARSS have completed around 200 km rail line and about 300 km of roads and highways.

ARSS Infrastructure Projects Ltd (Rs.42.55) has presence in Eastern India, particularly in the state of Orissa. However, in recent years they have pursued opportunities in other parts of India including states of Chhatisgarh, Rajasthan, Jharkhand, Haryana , Kerla, Andhra Pradesh, Assam, Maharastra and Tamil Nadu.

The scrip should be accumulated on dips for a short term price target of Rs.52-54.

WPI inflation at 5-year low: Four reasons RBI will not be convinced to cut rates on 2 December

Photo: India TV (Edited)

[Editor: This report is somewhat confusing to the common man or man on the streets. Let me try to put my point of view as against what is written here. This article stresses on WPI (as a basis of rate cut by the RBI), which has fallen to a five-year low of 1.77 percent, but misses the point that consumer price inflation had also simultaneously dropped to 5.52 per cent in October, below the Reserve Bank of India's (RBI) 6 per cent target for January 2016. The report quotes, India Ratings who said in a note: 

"the trajectory of inflation/inflationary expectations is still somewhat fuzzy in view of (i) waning of base effect after December 2014 and (ii) absence of clarity with respect to commodity particularly crude prices (is it a 'new normal')." The RBI would want to wait until clarity emerges on this front". But if any Central Bank is not able to anticipate clearly the inflation projection, even after such stark-naked facts and figures, then I would call the said action to be yokelish.  

The report again quotes, India Ratings as:

 "However, there are still certain food items which are witnessing very high to high double digit inflation for past several months. For example, over the past six months, inflation in fruits has ranged between 19% and 31%, in milk between 9% and 12% and in potato between 37% and 90%," it notes. But, there is no guarantee that the price will rise further or whether it has peaked out. Hence, this cannot be a basis for  gauging the future inflation projections. Right?

This article further says:

What has brought the prices down is not steps taken by the government. It is mostly because of the seasonal and global factors. For instance, seasonally this is the time when vegetable prices fall. Among global factors is the fall in crude oil prices.

But we are comparing on Y-o-Y figures, isn't it? Or in other words if seasonally vegetable prices fall this time of the year, then last year also, the same thing might have happened, isn't it? So, this factor just cancels out each other when we are considering yearly figures. Right?

Another point which is worth noting is that consumer goods output - a proxy for consumer demand that drives 60 per cent of India's economy - has grown in just two of the last 21 months. It fell an annual 4.0 per cent in September. 

At end my argument is that the RBI should cut the Repo rate to indicate their success on broad spectrum management of inflation. The fact is that 25 basis points cut of Repo by the RBI does not mean  much, but its direction is important as this might give a good signal to the India Inc. Moreover, holding of Repo rate by the Central Bank, has not worked in tandem with the rate cuts by the banks, recently in their FDs, because of slowing of credit growth. Therefore, Dr.Raghuram Rajan should look at these vital parameters and go for at least 25 basis points cut in the Repo rates. Besides, the government should quickly bring FDI in multi-brand retail so that the effect of middle-man is reduced and have a tight grip on the inflation monster. Bond traders are betting on one of the biggest interest rate reductions among major emerging markets once the rate cutting cycle begins. The 10-year benchmark bond yield had dropped 36 basis points since Oct. 1 until the last session on hopes of a rate cut] 

Nov 15, 2014: Wholesale price index-based inflation is suddenly the flavour of those who are routing for an interest rate cut by the Reserve Bank of India. This is because the print falling sharply and in October it fell to a heart-warming five-year low of 1.77 percent.

The fall has been helped by slower annual rises in food and fuel prices.

As per the data, food articles inflation stood at 2.70 percent and that in fuel and power at a low 0.43 percent. Vegetables have witnessed a price decline of 19.61 percent, while fruits prices have stubbornly risen 19.35 percent.

"With inflation at or under 6 percent we think RBI is likely to face pressure to ease, not just from the government, but also from RBI's own policy committee," Devika Mehndiratta, a senior economist at Australia and New Zealand Banking Group Ltd in Singapore, has been quoted as saying in the report.

The fact is RBI governor Raghuram Rajan have been under pressure to cut rates for quiet sometime now.

“Since Indian aggregate demand remains weak, and output is much below potential, if the glide path for inflation looks achievable, rates should be cut,” Ashima Goyal, professor of economics at Indira Gandhi Institute of Developmental Research had recently told The Economic Times. Goyal is also a member of the RBI's Technical Advisory Committee (TAC), the panel that advises Rajan on monetary policy.

Majority of the members of this committee has time and again advised the RBI to cut rates, but Rajan has proved that he is his own man.

Despite the clamour for rate cuts, which has just risen to deafening levels, Rajan is not likely to cut the policy rate in its 2 December review.

Here are three reasons:

For one, the decline in inflation is on high base. As India Ratings said in a note yesterday, "the trajectory of inflation/inflationary expectations is still somewhat fuzzy in view of (i) waning of base effect after December 2014 and (ii) absence of clarity with respect to commodity particularly crude prices (is it a 'new normal')." The RBI would want to wait until clarity emerges on this front. It is not just inflation that is worrying, it is also the inflationary expectations of the households.

Secondly, food inflation, which was one of the main concerns for the RBI, is falling but there is no reason to believe that it is sustainable. This is because the full impact of this year's deficient rains is yet to reflect in the prices. India Ratings notes at 2.7 percent, food inflation in October is the lowest since February 2012. "However, there are still certain food items which are witnessing very high to high double digit inflation for past several months. For example, over the past six months, inflation in fruits has ranged between 19% and 31%, in milk between 9% and 12% and in potato between 37% and 90%," it notes. Moreover, there are reports of heavy unseasonal rains in certain regions. However, there have not been any reports on crop damage yet.

Thirdly, what has brought the prices down is not steps taken by the government. It is mostly because of the seasonal and global factors. For instance, seasonally this is the time when vegetable prices fall. Among global factors is the fall in crude oil prices. "While seasonal factors could have a transient impact leading to sharp swings in the headline inflation in either direction, structural factors keep inflation stubborn; concerted efforts will be required over the medium term to sustain inflation at low levels," India Ratings notes. As per the ratings and research agency the structural factors that are impacting inflation are stagnating productivity, rising cost of cultivation, changing food consumption pattern and supply shock being exploited by intermediaries. The government has not taken any action to address these factors, without which the RBI is unlikely to be convinced of sustaining the present low level of inflation.

Fourthly, movements is wholesale price inflation do not really figure in the RBI's scheme of things, when it comes to monetary policy formulations. The central bank has officially accepted retail inflation as its key price indicator to decide the course of policy decisions.

Courtesy: Firstbiz.com

MARG LTD: Q2FY15 Result Analysis

Marg Ltd came out with pathetic set of numbers for the Q2FY15. The total income of the company decreased substantially to Rs.46.53 Cr as against Rs.66.77 Cr in the corresponding quarter previous year and Rs.40.31 Cr in Q1FY15.

Though the net loss before other income, finance cost and exceptional item decreased to Rs.4.03 Cr as compared to Rs.10.48 Cr in Q1FY15, but the finance cost rose to alarming levels of Rs.59.73 Cr during this period, making the company technically insolvent. 

Moreover, as a result of this jump in the Finance Cost, the net loss of the company increased to Rs.62.97 Cr in Q2FY15 as compared to Rs.31.95  Cr in Q2FY14 and 49.48 Cr in Q1FY15.

The investors are suggested to exit the stock of Marg Ltd (Rs.14.10) on any rise/rallies. Please avoid taking fresh positions, till the cloud over open offer (buy back of shares) is removed. 

Allied Digital Services Ltd: Q2FY14 result analysis

Please Click on the Photo to Expand

On a consolidated basis, Allied Digital Services Ltd came up with a subdued top line (flat when considered sequentially) and a much better bottomline on Y-o-Y basis in Q2FY15. 

The total income of the company in QFY15 came out to be Rs.66.89 Cr as against Rs.82.26 Cr in the corresponding quarter previous year and Rs.67.91 Cr in Q1FY15. 

The net profit of the company for Q2FY15 came out to be Rs.6.14 Cr as against a loss of Rs.7.29 Cr in Q1FY15 and a profit of Rs.4.53 Cr in Q2FY14. 

In the full year the company could come up with an EPS of Rs.3+. The investors are therefore, suggested to refrain from taking fresh positions in the company, till we see the Q3FY15 results, where according to my close sources, a confirmation of a likely turnaround is on the cards; with the caveat, that source based news could get horribly wrong, trapping the investors. 

The book value of the shares of Allied Digital Services Ltd (Rs.18.60) is Rs.149.40 and it has a market cap of Rs.90.53 Cr. Those who are holding can continue to hold the scrip with a SL of Rs.17.50 (exit). 

Finally, Cantt Board to get CCTV surveillance

Project was in limbo as PCB had asked for road digging charges from police

 Allied Digital India Office Directory

Nov 15, 2014: After waiting for eight months, the state government's ambitious plan to install 56 Closed Circuit Television (CCTV) cameras at 17 strategic locations in the Pune Cantonment Board (PCB) area will finally see the light of day.

As part of the Rs.224.31-crore contract, the camera surveillance project included setting up of 1,285 cameras at 438 locations across Pune and Pimpri-Chinchwad. However, it hit a roadblock with the PCB demanding Rs.62.87 lakh as road digging charges from the Pune police.

Even though the PCB had earlier given a technical go-ahead to the project, the permission was conditional, subject to payment to the cantonment board. When this was not done, the project went into a limbo.

Speaking to Mirror, a senior police officer said, "The matter was discussed at the PCB general body meeting and it was decided that the PCB will seek a refund of the road digging charges. The contractor has been insisting that it was not his responsibility to carry out restoration work after the cable lines are laid for installation."

When contacted, PCB's chief executive officer Sanjeev Kumar said, "After considering all the security aspects, we gave a go-ahead for the road digging process for installation about a month ago. We will seek refund of about Rs.70 lakh from the state government later."

Additional commissioner of police (administration) Abdur Rahman said, "Various agencies like BSNL, Maharashtra State Electricity Distribution Company Ltd (MSEDCL), PMC, PCMC, KCB and PCB are involved in the project. The earlier deadline has been missed and we are now taking weekly stock of the situation to speed up the process. As of now, 137 CCTV cameras are functional under zone I and connected to control room at police commissioner's office. The work is in its advance stage in Zone III (Pimpri and Chinchwad) — where 115 cameras are to be installed. In zone II (which includes PCB) and zone IV, 99 and 92 cameras will installed respectively."

M/s Allied Digital Services Limited (ADSL) has been appointed by the state home department as the contractor to install CCTV surveillance cameras in Pune. The project deadline was August 18 this year, which has now been extended to December 31. However, if sources are to be believed, this deadline will also be missed going by the groundwork.

PUNE CANTT INFO

The Pune Cantonment, established in 1817, is spread over 12 sq km and has a population of about 85,000. The cantonment boundary begins at Bhairoba Nala near Race Course and extends upto Lal Deval, and houses many military establishments. It is also known for its many shopping locations like MG Road, Fashion Street, Shivaji Market and East Street. The headquarters of Indian Army's Southern Command is also located in the Cantonment.

Courtesy: Pune Mirror

ARSS Infrastruture Projects Ltd: Result Analysis

Photo: www.arssgroup.in

ARSS Infrastructure Projects Ltd came out with decent set of numbers for the Q2FY15. The total income of the company for Q2FY15 came out to be Rs.165.16 Cr as against Rs.187.85 Cr in Q2FY14. The net profit of the company came out to be Rs.2.23 Cr as against a net loss of Rs.16.17 Cr in the same period previous year. This gives a basic EPS of Rs.1.50 as against a negative EPS of 10.90 in the corresponding period previous year. For the whole year the company is likely to garner an EPS of Rs.6. The Company's operations predominantly consist of Civil Construction Activities. 

The company is a major player in the Indian Railways Sector and is expected to be a major beneficiary of the current set of the REFORMS undertaken by the NDA government. 

Moreover, the book value of the shares of the company is Rs.239.76, while the market cap is only Rs.68.28 Cr. The P/E of the company is 1.58, against the industry P/E of 27.69. 

The traders can buy the scrip of the company at the CMP of Rs.44.40, for a short term target of Rs.53. 

Stone India Ltd makes a new 52-week high

Photo: Moneycontrol.com

The Stone India Ltd which was recommended around Rs.50.50 on February, 23, 2011, made a fresh 52-week high today at Rs.72.10. However, many of the investors, have accumulated the scrip when it fell to around Rs.14 last year. Congratulations to all of them.....

Stone India Limited (SIL) is engaged in manufacturing of Railway brake systems and various electro-mechanical products. The new innovative segment of Bio-toilets introduced for the Indian Railways has performed quite well. 

Jaiprakash Associates Ltd: Result Analysis

Please Click on the  Chart to Expand

Jaiprakash Associates Ltd, the engineering and infrastructure unit of the debt-laden Jaypee group, on Wednesday reported a net loss of Rs.106.5 crore for the September 2014 quarter, at a time when the promoters are actively seeking to pare debt. The company had posted a profit of Rs.67.67 crore in the corresponding quarter a year ago. 

However, if we look carefully at the results, then we would find that in Q2FY14, the other income component was Rs.123.58 Cr as compared to Rs.45.70 Cr only in Q2FY15. This gives a positive delta of Rs.77.88 Cr, in the previous-year quarter as compared to Q2FY15. Or in other words, this factor was missing in the results of Q2FY15, which is why the loss of Rs.100 plus came so easily. Also, the finance cost increased only by Rs.3.78 Cr in September, 2014 quarter as compared to June, 2014 quarter. 

Revenues however dropped by 15% to Rs.2,664.12 crore in the reporting quarter, due to sequential decline in cement and construction business (on seasonal nature of the business), according to analysts. Finance costs also rose 21% to Rs.793.29 crore compared to a year ago, but very less as compared sequentially. 

The QFY14 results show that the bottomline of the company is along the expected lines according to the average of estimates of analysts polled by CNBC-TV18 (Rs.100 Cr loss) and much better as per analysts polled by NDTV (standalone net loss of Rs.124 crore).

The group is trying to pare its debt of around Rs.60,000 crore by selling assets. On 25 September, the company announced the sale of three hydropower projects run by Jaiprakash Power Ventures to JSW Energy Ltd. Besides, there were recent media reports that, Aditya Birla group firm Ultratech Cement is believed to be looking at possible acquisition of Jaypee Group's three cement plants in Madhya Pradesh in a deal that could be worth about Rs.5,500-6,000 crore.

It is to be noted that the company has an asset base of Rs.36,868.26 Cr, as against its market cap of only Rs.8,039.27 Cr and FY14 earning of Rs.13,327.02 Cr. The book value of the shares of Jaiprakash Associates Ltd (Rs.33.05) is Rs.56.69.

The scrip seems to have factored-in, the current set of fundamentals and hence is not expected to go down too much from Rs.33.05.

Western India Shipyard Ltd: Q3FY14 Result Analysis

Western India Shipyard Ltd came out with good set of numbers for the September, 2014 quarter speaking sequentially. The total income of the company jumped to Rs.11.18 Cr in Q2FY14 as against Rs.5.66 Cr in the June, 2014 quarter. The net loss came down from 9.27 Cr in the June, 2014 quarter to Rs.4.51 Cr in the September, 2014 quarter, which showed marked improvement in performance, speaking sequentially. Also, the Finance Cost in the September, 2014 quarter has come down to Rs.1.90 Cr as against Rs.1.95 Cr.

This implies that the company is slowly strengthening its fundamentals and by FY16, it is expected to turn to black. Moreover, commencement of full scale mining in Goa, will help the company immensely. Also, the effect of new orders will start to show up from Q3FY15. 

However, there is a selling of the shares in the market, because most of the market participants has probably compared the result on Y-o-Y basis, which is not the right approach, for turnaround companies. Besides, the CDR money from its parent company, ABG Shipyard Ltd is likely to provide cushion against the working capital requirements. Chartically speaking, the scrip could find support at around Rs.2.20, where accumulation can be done, by long term investors. 

Will RBI succumb under pressure to cut rates?

Photo: Live Mint

November 10, 2014: The Reserve Bank of India (RBI) hasn't been obliging the market with a rate cut. In September, when all ingredients were in place for a rate cut, the RBI didn't lower rates and made it clear that it's not going to bite the bullet unless it sees inflation at comfortable levels, especially food inflation. 

The RBI has set consumer price index (CPI) target for January 2015 at 8 per cent and 6 per cent for January 2016. With CPI falling for the past four months and at 6.46 per cent for September, the RBI in its policy announcement on December 2 could cut rates.

The rate cut could be due to the pressure from the government who wants the RBI to ease monetary policy to boost growth. Captains of corporate India too have been vocal that high interest rates are hurting their business and growth. 

Last week, HSBC Services PMI data was disappointing with the data falling on the back of weaker growth in the new business orders. The data fell to 50 in October 2014 from 51.6 in September 2014. A level above 50 shows an expansion.

There are reports that the government will set inflation targets for the RBI. This is bad news if the RBI is dictated by the government, but it would be an appropriate time for the RBI to cut rates for accelerating India's growth engine. Why the RBI would be in a comfortable position to cut rates is because of a sharp fall in global crude oil prices, which was not anticipated a few months back. Global crude oil prices have dropped from $110 per barrel to $82 per barrel last week. Second, gold prices also have lost ground, falling to a four-year low. The fall in commodity prices is a big positive for markets and a stable rupee that is hovering around Rs 60-62 against the dollar augurs level for India, giving the RBI the comfort to consider a rate cut.

Meanwhile, this week the market will keep a close eye on macro-economic data starting with the Index of Industrial Production for September on Wednesday. For August, IIP was at 0.4 per cent. On Wednesday, the government will also announce CPI data for October. The market expects the CPI to surge to 7.15 per cent. For September, CPI was at 6.46. On Friday, the government will announce WPI data for October. The market sees inflation to rise to 3.79 per cent for October, compared to 2.38 per cent for September.

Quarterly results of Tata Steel, BPCL, Cipla, DLF, Hindalco Industries, Tata Motors, BHEL, ONGC, SBI and Sun Pharmaceutical Industries will also be in focus. The week would also see some action in stocks that would move in and out of the MSCI India index. The changes will come on effect on November 25. Some of the stocks like AIA Engineering, CMC, Federal Bank, City Union Bank, Prism Cement, Reliance Capital and Sintex Industries will be included in the MSCI Global Small Cap Index.

Courtesy: Business Today

Changes in price bands from November 11, 2014

India Eyes $100 Billion Investment In Renewable Energy

Photo: New Jersy 101.5

November 9th, 2014: The new Indian government is taking serious initiatives to boost the power sector, which is in dire need of financial and structural reforms. A large number of these reforms will be implemented in the renewable energy sector.

India’s minister for coal, power, and renewable energy last week announced that his government would push for an unprecedented $100 billion investment in the renewable energy sector over the next few years. With this plan, he also announced seemingly impossible solar energy capacity addition targets for the next five years.

Piyush Goyal announced that the government has increased the solar power capacity addition target to 100 GW by 2019 compared to the previous 22 GW installed capacity target by 2022. Prime Minister Modi has promised to enhance the solar energy target under the National Solar Mission during his election campaign but this new target is extremely ambitious, and seems virtually impossible to achieve.

Goyal also announced the target to double install wind power capacity to 40 GW by 2019. The target would be part of the National Wind Energy Mission expected to be launched soon. Wind energy companies across the country are upbeat, as two important financial incentives are now available to project developers. The government is planning to open up the offshore wind energy capacity to companies and also promote states with relatively lower wind energy resources as new markets.

The Indian government is hoping to get significant foreign investment into the renewable energy sector, and the power sector as a whole. The Ministry of New and Renewable Energy (MNRE) will organise India’s first global renewable energy investors summit in February next year. The government hopes to secure investment worth billions of dollars from international companies during the summit.

Courtesy: Clean Technica

Senvion wins 150MW Quebec wind turbine order

Photo: Re News

Monday, November 10, 2014: Germany-based wind turbine group Senvion has won a 150MW supply deal in Quebec, Canada. Senvion will deliver its 3.2M114 Cold Climate Version turbines to the Mesgi'g Ugju's'n wind farm.

The project – a 50/50 partnership between the three Mi’gmaq First Nations of Quebec and Innergex Renewable Energy – is due to be commissioned by the end of 2016.

The plant will be Quebec’s largest yet to be built with First Nations participation.

The delivery will mark the first time the 3.2M114 with hot-air de-icing is deployed in North America, said Senvion.

The manufacturer – a subsidiary of India’s Suzlon – claimed its case was helped by the performance of its turbines at the existing Viger-Denonville community wind farm in Quebec.

Senvion has been the star performer of the Suzlon group in recent years.

The Indian company has mooted the possibility of a partial stock market listing for the Germany-based company, although no firm decision has been taken.

Courtesy: Recharge News

WINNING STROKES: THINK DIFFERENT

My recommended Marg Ltd has been  hitting continuous upper circuits since the last few days. The investors should look for short term target of Rs.17-17.5 in the coming days. 

J P Power Ltd which was recommended a buy yesterday, once again at around Rs.14.20, today touched Rs.15.09 before  closing at Rs.14.77. I  have already suggested a switch from this scrip to either Suzlon Energy Ltd or BGR Energy Ltd (Rs.163.95). 

Allied Digital Services Ltd hit another buyer freeze at Rs.in the late afternoon trade. The scrip is moving up on the optimism that from Q3FY14, the company could show a turnaround. 

Hilton Metal Forging Ltd today touched Rs.21.75, before closing at Rs.21.25. The investors were suggested to book profits during the market  hours.
Today, the scrip of Western India Shipyard Ltd moved to Rs.2.64, before closing at Rs.2.59. The stock may break its 52-week high if it is able to cross the resistance zone of Rs.2.90-3.20, with good volumes. The company is coming up with September, 2014 quarter results on 11 November, 2014.

Jaiprakash Power Ventures Ltd: Result Update

The company as expected came up with good set of numbers for the September, 2014 quarter. The Company has posted a net profit of Rs.2998.10 million for the quarter ended September 30, 2014 as compared to Rs.2518.90 million for the quarter ended September 30, 2013. Total Income has increased from Rs.9765.90 million for the quarter ended September 30, 2013 to Rs.12073.20 million for the quarter ended September 30, 2014.

During the quarter under review, the company witnessed lower power generation at some of its hydel plants.

The firm also incurred "higher interest on corporate loans facilities to fund on going projects in the absence of company's ability to raise equity due to market conditions prevailing in the recent past," according to the filing.

Moreover, in 2013-14, power projects involving more than Rs.6 trillion of investment were shelved, abandoned or stalled, according to CMIE. 

The investors are therefore suggested to book at least 80% profits (or book complete) in Jaiprakash Power Ventures Ltd (Rs.14.77) and shift either to Suzlon Energy Ltd (Rs.13.65) or BGR Energy Ltd (Rs.165); or wait for fresh entry in J P Power Ltd, till it crosses Rs.15.20-15.40 with good volumes. 

Hoping to see Suzlon making profts as early as next financial year, says Tulsi Tanti

[Editor: There cannot be a 2nd opinion that Suzlon Energy Ltd is moving up the value chain everyday. The scrip is expected to touch the levels of Rs.30-3, soon. The India Today February 13, 2008 writes: 

Hailing from an agricultural family in Gujarat’s Saurashtra region, Tulsi Tanti and his three younger brothers decided to branch out on their own rather than go in for their family business of cold storage and construction. Tanti is a B.Com. from Rajkot’s Saurashtra University who simultaneously studied for a diploma in engineering. “I believe in the power of education,” he says. “I leveraged the commerce and technical knowledge gained during my diverse education to start a textile unit at Surat in the 1980s. During the 1990s, power cuts and electricity costs made me and my brothers look at alternative energy sources. We set up wind turbines to power the factory.” And thus was born the idea of wind energy as a sustainable business model. “We realised the potential of entering this business, specially taking into consideration the concerns of overuse of fuel resources and global warming.”

The investors are therefore, strongly suggested to buy the stock of Suzlon Energy Ltd on all declines along with Prajay Engineers Syndicate Ltd (Rs10.74) and keep; with occasional profit booking] 

Photo: India Today

NEW DELHI, November 6, 2014: Bullish on the domestic clean energy market, wind power equipment manufacturer Suzlon's founder Tulsi Tanti hopes to see his company out of red and making profits as soon as next financial year.

"The last quarter of this financial year we'll be very close to getting out of red and by next financial year we'll be in, let's say, green...I don't like the word black. Let's say green," Tanti told ET.

The company, which is the fifth-largest wind energy equipment manufacturer in the world, reduced its losses year-on-year in September quarter to Rs 656 crore, down from Rs 782.37 crore in the same period last year. 

Betting big on India's clean energy growth story, Tanti thinks that the ratio of his group's revenues at 60:40, coming respectively from its German arm Senvion and Suzlon, will change to 50:50 in future as the domestic market will be more promising. The company currently has an order book of 4.6 gigawatt valued at Rs 38,000 crore.

Not only does the company see onshore and offshore wind energy potential in India at 200,000 megawatts but also thinks that 10,000 megawatts more of wind energy can be added within three years, given the government addresses a few glaring bottlenecks.

"Interest cost is very high for us. If the government can reduce interest cost by 5 per cent and also double generation based incentive ( GBI) to Rs 1 by using the money from clean energy fund, the cost of energy will go down making it lucrative for consumers," Tanti said, adding that with such cost restructuring, capacity can be added quickly.

He also said that increasing the period of financing from 12 years to 20 years will also be helpful to reduce cost of clean energy for consumers as project developers will not be under pressure to amortise projects soon.

The company foresees 24 per cent increase in wind installations adding 4,000 megawatts by 2017.

Courtesy: The Economic Times (Edited)

Market Mantra

Today's call: The short term traders can Book some Profits in J P Power Ltd at Rs.14.90-15 and/or Hilton Metal Forging Ltd at Rs.21.75 and again enter Suzlon Energy Ltd at around Rs.14.65-14.70. According to the recent media reports, the wind energy major Suzlon is trying to revive its fortunes with a new hybrid model of onshore wind turbines that offer better efficiency. The new S97 2.1 MW turbines mounted to a height of 120 metres is claimed to be the world’s first and tallest lattice and tubular hybrid wind towers. Suzlon launched the first turbine on November 7 at its wind farm at Kutch in Gujarat. According to Jagron Josh, 8 November, 2014: Established in 1995, Suzlon is a leading wind power products and services company with a global footprint. Suzlon is credited with developing one of the world’s largest wind farms in the western Indian state of Gujarat and Rajasthan. 

The company has presence across six continents : North and South America, Asia, Australia, Europe, and Africa. The Suzlon Group has built its presence in over 31 countries and has achieved a milestone by crossing over 25000 MW of wind power installations globally. The scrip could hit another buyer freeze today at the end of the day. 

Allied Digital Services Ltd hits the buyer freeze in the mi-afternoon trade at Rs.20.15.  According to my close sources, the company could start showing better performance from Q3FY15. The stock is possibly reacting to this change outlook. 
Jindal Saw Ltd again reached my 1st target of Rs.82 and is  now trading at Rs.82.35.
The traders can buy IVRCL Ltd at Rs.18.80, for a short term target of Rs.21.