Important

1. Prajay Engineers Syndicate Ltd (Rs.14.93) has hit the upper circuits in both the exchanges. Where is the stock heading ?  Can it cross Rs.27, considering that Hyderabad is now a happening city and lot of real estate opportunities are avaliable in Vijaywada too. Trade through my recommended brokerage house and get my assistance FREE. 

2. Buy Future Enterprises Ltd near the support of Rs.17.50 . If you are buying at the CMP of Rs.18.45, then please do keep a SL at Rs.17.30. Targets: Rs.28 - 31.

3. Reliance Communications Ltd (Rs.31.40) is better placed among all the incumbent Telecom players to handle the RJio menace. It is because it has tie up with RJio as regards infrastructure and spectrum sharing -- RCom has one of the highest holding of the  lucrative 800 MHz spectrum used for (highly penetrative) 4G transmission; apart from 1800 MHz category. RCom is gettin royality from RJio for the use if these spectrums.

Today's Calls

1. But LT Foods Ltd at Rs.367, T: Rs.377-381, SL: Rs.362. Exit out of LT Foods at Rs.371, the stock is not performing according to expectations.

2. Buy Torrent Power in intra-day dips at Rs.191, T: Rs.197-201, SL: Rs.187.

3. Buy State Bank of India at Rs.259, T: Rs.270, SL: Rs.252.

Today's Calls: BTST

1. Buy Reliance Capital at Rs.461,T: Rs491, SL: Rs.455.

2. Buy IRB Infrastructure above Rs.220.50,T: Rs.235, SL: Rs.215

3. Intra day buy Axis  Bank at Rs 486, T: Rs.491,SL: Rs.476.

Today's Calls

1. Buy KEC International Ltd at Rs.151, T : Rs.159 - 167, SL - Rs.139.

2.  Buy Dewan Housing Finance Corporation Ltd at Rs.273.40, T: Rs.285, Rs.265.

Advantage: Anil Ambani..? Or Jio Buy - out..?

The Financial Express writes on 13 January, 2017: Right now, incumbents are using 4G spectrum to offer data services to subscribers and continue to offer voice calls using older GSM networks. If there is a surge in voice traffic after free voice becomes the norm, these telcos will then have to invest more in capacity to augment their ability to carry voeice traffic on their GSM networks. Their best bet, in such a situation, is to accelerate their migration to VOLTE networks of the type RJio has—some of them have, in any case, been carrying out trials on this in select areas. 

The problem, however, is that while lower frequency bands are better suited for this, none of the incumbents have a pan-India network of, say, 900 MHz spectrum where VOLTE networks can be deployed. The best bet in such a situation is 700 MHz, but thanks to the regulator putting an arbitrarily high reserve price for this spectrum, and pegging it at four times that of the 1800 MHz band, there were no bidders for this band in the last auction.

The result of this was that telcos which already have spectrum in the 800/900 MHz bands continue to enjoy an unfair advantage—the 800 MHz spectrum RJio is using was ‘liberalised’ by RCom at a cost of around Rs 5,300 per MHz as compared to the Rs 11,485 crore reserve price for 700 MHz. 

In the past, when the regulator had come up with irrational reserve prices, the government had reduced it—in 2012, while Trai recommended 800 MHz be priced at twice the 1800 MHz price, the Cabinet lowered this to 1.3 times and when the auction still failed, the reserve price was further cut by half in 2013. 

For reasons best known to it, the government chose not to do the same this time. Were the government to continue to price 700 MHz spectrum very high, this will result in a big advantage to RJio.

Reliance Communications Ltd (Rs.31.40) has one of the highest concentrations of 800 MHz spectrum among the telecom players, for which it is going to get Royalty from RJio. So, an advantage to RJio gives indirect positives to RCom, which has been mentioned here umpteen number of times.

Earlier, the Junior Ambani has shown the white flag to Mukhesh, by announcing that RCom has virtually merged with RJio.

However, on the flip side off late there are strong rumours in th market that Mukhesh Ambani wants to lap up RCom at dirt cheap price, through an open offer by hammering its shares.

It is to be noted that, Anil and Mukesh Ambani, despite being brothers, have had a tumultuous relationship in the past.

The Telegraph writes on 14 January, 2017: It is a saga worthy of a Bollywood melodrama. The story of the Ambani brothers is one of vast fortunes and billionaire glamour, a bitter feud and a vicious business rivalry.

Now one of Britain’s biggest companies is caught in the crossfire of the 15-year battle between Mukesh Ambani and his younger brother Anil. Vodafone is suffering in India, to the tune of at least £4.4bn in write-downs so far, as the elder Ambani, India’s richest man, mounts a £20bn onslaught on the mobile market, hitherto Anil’s territory.

RCom had already signed a 17-circle airwaves sharing pact in the 800 Mhz band with Jio. It has also agreed to sell its 800 Mhz airwaves in nine service areas to Jio where the latter does not have spectrum in that band. But still it gives RCom an edge over RJio in the 800 MHz space.

Anyway, under the partnership announced earlier, RCom brings in most of the spectrum while Jio provides the network and much of the cash for conversion of the spectrum. The regulators should look into this aspect too; as the minority shareholders continue to suffer.

Today's Calls

1. Buy VEDL at Rs.236, T -  Rs.242 - 248, SL- Rs.231.

2. Buy IPCA Laboratories Ltd at Rs.566,  T - Rs.580-600, SL - Rs.548.

3. Buy Gujarat Ambuja Cements at Rs.215 , T -  Rs.221-227, SL -  Rs.206.

Aircel - Maxis (Deal) Fiasco: The Apex Court and Some Thoughts..

In the Aircel-Maxis deal case lodged by CBI and the Enforcement Directorate (ED) it was alleged that South Asia FM Ltd (SAFL) and Sun Direct TV Pvt Ltd (SDTPL) had received Rs.742.58 crore as "proceeds of crime" from Mauritius-based firms.

Later ED alleged before the court that Dayanidhi had generated funds worth Rs.742.58 crore through illegal means and there was sufficient prima facie material to proceed against him and other accused in the case. And thus the narrative changed..

Now, DNA India, a BJP sympathetic web portal writes: 

The Supreme Court order preventing Aircel from disposing of its spectrum and licences through a proposed merger with Reliance Communications is a befitting response to the its promoters disregarding Indian laws. Aircel is owned by Malaysian company Maxis, whose Indian origin promoter Ananda Krishnan has been chargesheeted by the Central Bureau of Investigation, in one of the 2G spectrum scam cases. Though the court is slated to frame charges, it will not be able to proceed with the trial against Krishnan unless he appears in person to defend himself.

The Supreme Court stayed the sale and trading of the licences and spectrum noting that spectrum was a “very valuable resource” on which a lot of money could be made. The court noted that if that money was earned on account of fraud and Krishnan was not facing the legal process, “then we cannot allow that money to be earned by anyone”. The loudest criticism against the Supreme Court during the UPA-II years were that courts were hurting investment through judicial activism.

If judges have to look beyond the constitutionality and legality of cases and also factor in the fallout of their decisions, it is impossible for justice to be delivered. The Supreme Court judgment ruling that scarce natural resources must be auctioned raised a hue and cry from telecom operators and the power sector complaining that business would turn unprofitable and costs would increase for consumers". 

Now the point is when the deal involves only Rs.742.58 crore, what is logic of blocking a Rs.65, 000 crore deal, especially on the ground of possible personal and political vendetta..? Judicial and too much political activism, accompanied by over regulations has hereto destroyed the once vibrant telecom sector.

Now if the Judges, start to frame policies by their whims and caprices, then it is a very bad news for India. Any justice should have a human touch instead of hard and rock solid bookish judgements. In this context let me quote from Law Live:

The necessity of a judiciary which is in tune with the social philosophy of the Constitution has nowhere been better emphasised than in the words of Justice Krishna Iyer which we quote: “

Appointment of Judges is a serious process where judicial expertise, legal learning, life’s experience and high integrity are components, but above all are two indispensables — social philosophy in active unison with the socialistic articles of the Constitution, and second, but equally important, built-in resistance to pushes and pressures by class interests, private prejudices, government threats and blandishments, party loyalties and contrary economic and political ideologies projecting into pronouncements. (Mainstream, November 22, 1980)” Justice Krishna Iyer goes on to say in his inimitable style: “Justice Cardozo approvingly quoted President Theodore Roosevelt’s stress on the social philosophy of the Judges, which shakes and shapes the course of a nation and, therefore, the choice of Judges for the higher Courts which makes and declares the law of the land, must be in tune with...tune with the social philosophy of the Constitution. Not mastery of the law alone, but social vision and creative craftsmanship are important inputs in successful justicing. (Mainstream, November 22, 1980)”...

Therefore, we can conclude that any judgement which does not take into account a broader social perspective, is artificial and is not likely to help in true nation building.

In Aircel - Maxis case too the apex court should act in such a way that it creates minimum pain for the innocent minority shareholders, while identifying the true miscreants and punishing them, according to the laws of the land. The question is why should the shareholders suffer and their wealth damaged because one of the promoter's of that merged entity is failing to appear in the court....😰😰😰😰. The court instead of penalizing the retail Investors should have gone all out for bringing Ananda Krishnan to India, isn't it

This is like an old Bengali Joke: "Because I could not get hold of you, I will take action against your shit wherever I get them...!! Sardonic, are some of the Apex Court directions/actions and judgements. Really what to say!!

However, it seems on the short term there is relief on the anvil for the shareholders, as a news on the ET of 11 January, 2017, almost echoes my view:

"The telecom company may seek an opportunity to present its side of the issue and is likely to stress that any decision on its spectrum holding would have implications for stakeholders such as lenders, vendors and employees, apart from shareholders besides Maxis. Senior lawyer Harish Salve said he has been consulted on the matter, but did not comment further".

Reliance Communications Ltd: Where it is heading?

CMP: Rs.33.30

It has been a harrowing tale for all those who invested in the shares of Reliance Communications Ltd. The stock had been falling since the last few months even though the much expected tower sell deal, a mega merger, a number of investor friendly steps, etc has been effected. However, it seems with the near termination of the free offer of RJio, this bas phase looks to be over. The sun is again likely to shine over the telecom horizons.

Moreover, telecom sector being from the essential service space should be least affected by the demonetisation fiasco; as we are approaching the deadline of 30th December 2016. The stupid and mindless demonetisation move of  Narendra Modi -- Urjit Patel has already failed, as expected and as predicted by eminent economists like Prof.Amartya Send and Dr.Kaushij Basu. Besides, no RBI governor, I have seen has spoiled the reputation (so badly and cheaply) of the RBI like Dr.Urjit Patel has done. After the failed demonetisation drive it remains to be seen whether he is being impeached by the Parliament or not. He seems to have got inuenced by the Narendra Modi - Amit Shah disease (BLUFFS and Jumlas).

Anyway, yesterday, a buy call was initiated in the counter at Rs.33 with a short term targets of Rs.35-37. Today the scrip has already touched Rs.33.85 in the NSE, with strong volumes. What I feel is that the investors can increase their holdings in RCom or average keeping a stop loss of Rs.31.

But one rumour which is gaining momentum is that of price rigging of the sharez of RCom by Mukhesh Ambani group to bring down the price of open offer. There is media speculation that RJio is likeky to by out Rcom in a cash+equity deal. The authorities (SEBI) should look into this matter on urgent basis and if necessary take appropriate actions.

Cashless India: Advantage Telecom Companies

Photo: The Indian Express

The NDA government at the centre is taking lot of measures to make a 86% cash economy into cashless. But the things should have been done slowly, due to India's structural problems.

Anyway, it is important to mention here that, India has among the highest usage of cash across global economies. According to a 2015 report from PwC, 98% of all transactions by volume happen in cash. 68% of the total value of transactions are conducted in cash.

Admittedly, high cash usage often comes with a cost. In 2013, research firm McKinsey found a strong correlation between high cash usage and the size of a country’s shadow economy. 

The size of India’s own shadow economy — which includes black market transactions and undeclared work—is roughly a quarter the size of gross domestic product (GDP).

Indeed, India suffers from a serious rash of corruption, which hurts honest, hardworking families. According to Transparency International, the South Asian country ranks 76 out of 168 countries in its 2015 Corruption Perceptions Index. 

In May, Indian government data showed that a scant 1% of Indians pay income taxes. Cashless India is an answer to most of these kinds of problems.

Now, in one of his speeches, the PM, Narendra Modi, has spoken of using the mobile phones as banks and as a device which will promote the cause of cashless India. He gave a clarion call to use the smart phones, as a part of everyday transactions and plus the loop holes, which gives more muscles to a parallel economy.

This gives some legs to the Indian telecom companies to increase their businesses, as more and more people use smart phones and internet, to do their necessary transaction; without any physical transfer of Cash, lowering the cost of printing of new currency.

Already, I am  told that Airtel has come up, with a Bank whose services can be used for a number of purposes, apart from making an user a permanent customer.

Now, more use of telecom services means more number of towers and fibre cables needed for the installation and execution of the same. This is therefore, a very good news for both the tower and wireless telecom companies.

In such a scenario, I would suggest you to slowly accumulate the shares of telecom companies which are now trading near their 52 - week low prices. Top picks:

1. Bharti Airtel Ltd: Rs.324.90.
2. Bharti Infratel Ltd: Rs.393.65

3. Reliance Communications Ltd: Rs.35.90

4. Idea Cellular Ltd: Rs.73.35.

It is to be noted that, I have recommended all these stocks yesterday in Facebook.

Narendra Modi's demonetisation: A Monument of Chaos & Confusion....

According to some media reports, though lndia's GDP grew at the fastest pace for a large economy in the September quarter, the nation could experience some amount of uncertainty in the third quarter of fiscal 2016-17 due to the government of India's (led by the BJP -- Bluffers' Party of India..?) decision to demonetize Rs.500 and Rs.1000 currency notes. Also, the Contraction in capital investment deepened further.

India's Gross domestic product (GDP) clocked an annual 7.3% growth between July and September, faster than 7.1% in the previous quarter and higher than China's 6.7%.

It is pertinent to mention here that, Reserve Bank of India posted this notice on November 8:

Government of India, vide their Notification number 2652 dated November 8, 2016 have withdrawn the Legal Tender status of ₹ 500 and ₹ 1,000 denominations of banknotes of the Mahatma Gandhi Series issued by the Reserve Bank of India till November 8, 2016.

This is necessitated to tackle counterfeiting Indian banknotes, to effectively nullify black money hoarded in cash, and curb funding of terrorism with fake notes.

Let us now observe what Patrick W. Watson, wrote in  Forbes, 1 December, 2016:

This whole idea of a “cashless society” used to be a kooky fringe belief. Conspiracy promoters said jackbooted government thugs would kick in your door any minute and confiscate all your vegetables.

Guess what: the kooks had a point. People in high places really do want to take away your cash, or at least most of it.

I , for one, will oppose this (if they bother to ask my opinion). People with criminal intent will find other ways to keep their businesses hidden. Eliminating cash would create hassles for everyone, for no real benefit.

Modi’s “demonetization” turned into a mess. The government’s sudden decision to withdraw large-denomination currency from circulation, has caused enormous hardship to millions of people in the country’s predominantly cash-based economy.

Lines formed at banks, with people waiting for days, only to find the bank ran out of smaller bills. Those without bank accounts had no way to make routine transactions. Already impoverished people had to spend their work time waiting to exchange their money. New bills intended to replace the old ones were scarce.

The results spread through the economy like wildfire. Merchants lost sales because customers couldn’t pay. Some resorted to barter. Media reports suggest restoring normal commerce could take months.

A few people reportedly died, most of them elderly citizens waiting outside banks for days, but also some overworked bank employees.

Analysts are already saying the sudden contraction will hurt economic growth. Economists at Ambit Capital cut their 2017 GDP growth estimate almost in half, from 6.8% to 3.5%. They think the effects will last into 2018, too.

With consequences ranging from disruptive to fatal, why would any government do something like this?

India to go cashless?

These days after the ill conceived demomitisation drive of the "Copy - Paste" Narendra Modi government, lot of stories are being spun to make India, a country where still more than 25 crore population struggles to get two square mills a day, Cashless -- a sort of Utopia, in the prevailing socioeconomic conditions.

The Modi brigade has suddenly becomes aficionados of "Plastic Money". 

However, it is to be remembered that in India more than 80% of the financial transactions are done through cash. The current "Tughlaq-ian" policy has suddenly brought this system to a standstill.

There is no 100% cashless economy in the world. Moreover among the 150 - plus, small and big countries, only a few Scandinavian and African countries,  apart from UK and Canada has gone for partial cashless; with Sweden topping the list.

However, Germany, a super power in Europe is one such place where the usage of cash is still very popular. Places like cafes and small restaurants actually refuse to accept cards.

It is no surprising that like in many earlier cases, the Narendra Modi brigade focuses, only that part of the whole story which suits their clandestine designs.

It is to be remembered that Debit Card companies normally charge 2% on any transaction, while in case of Credit Cards there are yearly fees, in additiom to the interest charged for exceeding the credit period.

So, the Modi government is trying to put additional financial burden on Indians; through advertisement blitzkrieg.

Additionally, this (demon)etisation drive has already dented the image of India, among the nations of the world, as many foreigners have started to think that Indians horde huge "Black Cash" in their homes, while in reality it is not more than 6-10% -- what a stark way to score self-goal...!!

Also, if the (demon)itisation is such a "HOLY" and wonderful step to cull "Black Money" in India, then why did a 2012 CBDT report advised the then government against the move and more importantly why did the BJP oppose the move in 2014..?

India to go cashless?

These days after the ill conceived demomitisation drive of the "Copy - Paste" Narendra Modi government, lot of stories are being spun to make India, a country where still more than 25 crore population struggles to get two square mills a day, Cashless -- a sort of Utopia, in the prevailing socioeconomic conditions.

The Modi brigade has suddenly becomes aficionados of "Plastic Money". 

However, it is to be remembered that in India more than 80% of the financial transactions are done through cash. The current "Tughlaq-ian" policy has suddenly brought this system to a standstill.

There is no 100% cashless economy in the world. Moreover among the 150 - plus, small and big countries, only a few Scandinavian and African countries,  apart from UK and Canada has gone for partial cashless; with Sweden topping the list.

However, Germany, a super power in Europe is one such place where the usage of cash is still very popular. Places like cafes and small restaurants actually refuse to accept cards.

It is no surprising that like in many earlier cases, the Narendra Modi brigade focuses, only that part of the whole story which suits their clandestine designs.

It is to be remembered that Debit Card companies normally charge 2% on any transaction, while in case of Credit Cards there are yearly fees, in additiom to the interest charged for exceeding the credit period.

So, the Modi government is trying to put additional financial burden on Indians; through advertisement blitzkrieg.

Additionally, this (demon)etisation drive has already dented the image of India, among the nations of the world, as many foreigners have started to think that Indians horde huge "Black Cash" in their homes, while in reality it is not more than 6-10% -- what a stark way to score self-goal...!!

Important

1. Those who have still now not sold the

shares of Prajay Engineers Syndicate Ltd (Rs.14.05) can continue to hold with a SL of Rs.11.70 for earlier mentioned targets of Rs.18-21. The property prices in Hyderabad and Vijayawada are showing some buoyancy amidst all the doom and gloom in NCR, MMR, Bangalore, Pune, Kolkata, etc. How this opportunity is utilized by the Prajay management to effect a turn around, remains to be seen.

2. The shares of RCom should soon break out from the current levels and move towards Rs.53-54. The investors are suggested to have a little patience. Some of the analysts with qhom I spoke during the last couple of months have more or less given a target of Rs.72, for the scrip.

3. Shrenuj & Co hit another buyer freeze at Rs.3.65. The investors are suggested to book some profit.

4. With lot of fanfare, the Mumbai based operator S P Tulsian recommended MBL Infrastructure Ltd (Rs.105) and Jai Corp Ltd ( Rs.72.55). But once both the stocks started to underperform, he and his pet channel CNBC TV18 are found nowhere. Pump and Dump..? Photo: Dynamic Levels

5. Those who are holding Vedanta Ltd (Rs.215) from Rs.61-62 levels can book 80% profits a d hold the rest with a SL of Rs.196.

6.Those who have entered Texmaco Rail Ltd should hold with a SL of Rs.107. Since the budget date will be advanced, we can expect the share to touch Rs.141-142, in the next couple of months.

"Muhurat" Picks and Other Stocks

First of all, let me wish you all a very happy Deepawali and Kali/Lakshmi Pooja. These days, I am too busy with some Bollywood (and other) Assignments, which calls for frequent change of locations and therefore,  I mostly update this blog from my mobile and Tab. The things at my end are likely to get streamlined from the 2nd week of next month -- till then please bear with me.

The Samvat 2072 was very challenging as the Nifty fell from around 8000 to 6900 during the first four months.

However, post budget day, it had a secular bull run with Nifty gaining around 8% during the whole of Sambar 2072; mid and small caps outperforming their larger peers.

The Indian markets at present are on a Bull Run inspite of the global headwinds like Brexit, talks of a rate hike in the US, Crude Oil meltdown and most importantly, a destabilizing northern frontiers; where the Indian defense forces are struggling to contain streams of terrorist inflow from across the border.

Meanwhile, we have seen a cut in fiscal and current account deficits, accompanied by low inflation and a somewhat stable INR. Moreover, the reversal of interest rate trajectories and good monsoon after a gap of couple of years, have raised hopes of further travel of Nifty towards the North. 

In Samvat 2073 too, I expect this bullish trend to continue as the NDA government continues with its reform agenda, which is likely to catapult a continuous money flow towards the Indian shores; both through FDI and FPI/FII. Recently there are market gossips that the FMO is examining the proposal to cut corporation tax by 1-2%.

Besides, with bond yields on the decline, there is an expectation that retail investors would gravitate towards stocks from fixed income instruments. This also has contributed to higher interest among investors to look for stocks that would deliver good returns over a 12-month horizon.

It is pertinent to mention that, India is among the few countries which has a GDP growth of above 7%; a figure which has led even the DIIs to keep their money taps pouring, on the Indian bourses.

In this condition, I continue to remain bullish in some of the beaten down sectors, like Telecommunications, Banking, Construction (not real estate), Engineering, Upstream Oil companies and Gems and Jewelry sector, apart from FMCG, Steel, Power and Auto. I am recommending two scrips as "Muharat" Picks:

1. Buy Texmaco Rail & Engineering Ltd at around Rs.110-111, for a short term target of Rs.139-141.

2. Buy Tata Coffee Ltd at Rs.127-128, for a target of Rs.145.

Tata Coffee has reported an 85-per cent growth in profit during July-September quarter at Rs 24 crore as against Rs 13 crore, a year ago. The Coffee production in India for 2016-17, post blossom, was estimated at about 320,000 metric tonne, lower by eight per cent, compared to 348,000 metric tonne in 2015-16 (final estimate).

Updates on my previous recommendations:

1. The investors can book some profits in Shrenuj & Co at around Rs.3.32 and complete profit in Prajay Engineers Syndicate Ltd at around Rs.14.50-15.50. Though the land prices in Hyderabad and especially in Vijayawada are showing some buoyancy, but Prajay Engineers Ltd like many Hyderabad based companies have a questionable management; so unless you are a too risk taker it is better to book short term profits and invest in better pedigree companies.

2. Those who are still holding my recommended J P Associates Ltd (Rs.11.15) and Unitech Ltd (Rs.6), should book complete profits and exit the counters, as the real estate markets in NCR and MMR are likely to collapse further due to over supply and high base prices. The unsold inventories continue to rise as the Builders are finding extremely difficult to come out of debt traps; as it seems the buyers are continuing to exit real estate space, in these two regions.

3. Those who are holding MBL Infrastructures Ltd (Rs.104.95) and RCom (Rs.46.80) can continue to add on declines for targets of Rs.150-170 and Rs.72, respectively.

MBL Infrastructures Ltd is engaged in execution of civil engineering projects across the country. The company has integrated business model for EPC and BOT projects. Photo: The Hindu Business Line.

4. Those are still holding my recommended Tata Steel Ltd from Rs.217 levels can look for target of Rs.425, where they can book complete profit and wait for dips to enter.

5. Those who are holding my recommended BHEL from Rs.92-106, can continue to add for the long term with a SL at Rs.131.

6. Those who are holding my recommended Vedanta Ltd from Rs.61-62, can look for short term targets of Rs.210-212.

Do You know...?

Mr.Amar Singh and Anil Ambani were once in the same party, viz, SP of Mulayam Singh Yadav, isn't it?

Now it is interesting to note that while shares of Energy Development Company Ltd of Amar Singh (in which once Amitabh Bachchan held stake) raced from Rs.19-20 to Rs.220 plus in one year, RCOM (Rs.45.95) is still a laggard.

I feel with Mukhesh Ambani now firmly behind RCom (Anil said Reliance Communications Ltd has virtually merged with RJio Infocom of Mukhesh Ambani) and Both the brothers suddenly becoming Narendra Modi fans, I don't think this dichotomy can continue for long.

Amar Singh, the powerful "Thakur" from the UP is a friend of Ambani Brothers, especially the Junior one.....

Important

1. My recently recommended Prajay

Engineers Syndicate Ltd (Rs.12.40) is hitting new high. The investors can hold the scrip for targets of Rs.18-21. The buoyancy in the real estate market in Telengana and Andhra Pradesh is positive for the counter.

2. MBL Infrastructure Ltd (Rs.102) is likely to

come up with good set of numbers for the September quarter.

Among the smaller companies in the infrastructure space, road player MBL Infrastructures is well placed to gain from the improving outlook.

For one thing, MBL Infra has not followed an aggressive strategy unlike some of its peers. In the build-operate-transfer segment, the company has four road projects under implementation.

Two of these have a relatively lower risk, being on an annuity model, where the road developer receives fixed half-yearly payments from the state or national highways authority and is not subject to the volatility of traffic flow.

MBL has one completed BOT project on which it is collecting tolls.

The other BOT projects will become operational over the next few months.

The second reason MBL is well placed to grow is because it simultaneously undertakes pure construction of roads on a contract basis, or as EPC (engineering, procurement and construction) projects for third parties.

Thirdly, MBL is an early mover in operations and maintenance of completed roadways, a segment with strong potential and accounting for 15% of its order book.

Fourthly, MBL has diversified from roads into segments such as railways, where there are now many opportunities.

Industrial and residential buildings are the final segment MBL operates in. The company is now looking into booking construction contracts in port development and connectivity through joint ventures.

Thanks to its EPC business, MBL sales have been growing.

Over the past 4 years, revenues have grown over 15% on a compounded annual basis. In December, 2014, MBL Infrastructure Ltd managed to raise Rs.117 crore in equity through institutional placements balancing its heavy debt to an extent.

The investors are suggested to accumulate the scrip of MBL Infrastructure Ltd on declines.

3. BHEL recommended around Rs.106.15 in March, 2016 has already given more than 40% return during this period. Short term investors can hold the scrip with a SL of Rs.136-131.

4. Those who have booked short term profit in Jai Corp Ltd around Rs.75, should wait to see if it breaks Rs.72 and comes down to Rs.67-69, for taking fresh positions.

5. Those who are holding the shares of Reliance Communications Ltd (47.10) should accumulate as much as possible. The rally in RCom will probably start post Deepawali.
This company is now virtually merged with RJio, apart from its formal merger with Systema  and Aircel. "The spectrum auction did not attract any bids for the highly expensive 700 MHz band, implying that Reliance Jio Infocomm Limited (unrated) and Reliance Communications Limited (Ba3, review for downgrade) -- which have a spectrum-and-infrastructure sharing agreement -- will remain the only players with access to pan-India spectrum in the sub 1 Ghz band," a recent Moody's report said. "Longer term, the spectrum which the operators secure will help them maintain their competitive positions, support their strategies on data growth and enhance cash flow generation.

Their high debt burdens may also pave the way for recapitalisation events and further industry consolidation, which will in turn ultimately benefit those incumbents well positioned in 4G," the report noted.
It is now a massive company and it is your sheer luck that you are getting the shares of RCom at dirt-cheap price of Rs.47-48. Aggressive investors can sell gold/real estate and invest in the stock.

6. Vedanta Ltd (Rs.203) recommended around Rs.60-62, has given a stupendous returns to patient investors. The long term investors can still hold the stock for targets of Rs.217-221, SL: Rs.191.

7. Those who are still holding the shares of Gitanjali Gems Ltd (Rs.78.79), can book some profit and hold the rest with a SL of Rs.75.

8. Those who are holding the shares of Shrenuj & Co Ltd (Rs.2.85) can continue to hold till Deepawali, with a SL of Rs.2.70.

Important

1. Buy Sure Shot: MBL Infrastructure Ltd at Rs.106.55, T: Rs.125 -- 132, SL: Rs.97.

2. Short term traders can book some profits in Jai Corp Ltd (Rs.74.80).

3. Increase your holding in RCom (Rs.47.35) for a Short term target of Rs.54.

4. The infrastructure sector should do well post monsoon -- so remain heavy.

Navi Mumbai and Jai Corp Ltd

Photo: Twenty22--India

The land prices in  Navi Mumbai are shooting up due to:

(i) the proposed international airport near Ulwe,

(ii) the proposed trans-harbour sea link between Navi Mumbai and Shewri, south Mumbai. After its completion,  commuters will be able  reach Nariman Point from Panvel in mere 30 minutes.

(iii) the metro linkage between Navi Mumbai airport and Belapur. In future this metro project is likely to extend up to Chembur via Taloja and Vashi,

(iv) due to Navi Mumbai Sez.

The Financial Express writes on 3 October, 2016:

Navi Mumbai is now also connected via the eastern freeway in Chembur to Nariman Point in south Mumbai.

With real estate costs that are nearly as competitive as those in Gurgaon, Pune or even some pockets of Bengaluru, Navi Mumbai is staking a claim to become the next big IT hub. 

The direct beneficiary would be Jai Corp Ltd (Rs.71), which has large land holdings in Navi Mumbai and Mumbai Sezs apart from its traditional business. Anand Jain of Jai Corp is a close associate of Mukesh Ambani, who also owns land in Mumbai Sez.

I feel it is pertinent to mention here that S P Tulsian of www.sptulsian.com earlier told CNBC-TV18 that: "In the land bank, Navi Mumbai SEZ has 4,100 acre and Mumbai SEZ has 4,600 acre in which Jai Corp is having interest. With this trans-harbour link, Sewri to Navi Mumbai, that will give a good value to that land. Still things are there, regulatory clearance and all that conversion from SEZ, but this company is holding minority stake in that and that will definitely be seen quite positive."

Astronomical Pricing of 700 MHz auction to help Ambani brothers...?

The result of Telecom auction failure is a disaster of an exercise that had the potential to give a new leap to high speed internet at affordable prices.

KNDA government's greed and plundering attitude destroyed the opportunity.

However, I am of the view that spectrum pricing of 700 MHz category in the recent auction might have been done to help Ambani brothers, because RCom has enough of 800 MHz spectrum (probably highest among all telecom players in India) which is comparable with 700 MHz.

It is pertinent to mention here that virtually RCom and RJio is now a single company --- RJio can use RCom's 800 MHz spectrum for its 3G and 4G services, across the length and breadth of India.

Therefore, no telecom company bidding for 700 MHz (or getting it and losing money for infrastructure spend) is positive (advantageous) for both RCOM and RJio in their present day avatars.

Do you know..?

Jai Corp Ltd (Rs.72.95) made a high of Rs.1,282 on January 10, 2008.....while RCom (Rs.47.30) had made a high of Rs.800 plus in 2008.

However, both the companies now have expanded their businesses few fold from that avatar to the present state.

While in between Jai Corp Ltd has started venture capital fund and they are developing Rewas Port near Mumbai having a draft of about 14.5 meter with 10 berth for which again 2,000 acre of the inter-tidal land has already been given by the maritime board to the company and that port is expected to go on steam may be by the end of this year.

RCOM has done one of the biggest handshakes in the telecom sector, virtually merged with RJio (which has very strong Financial Muscle) and is to sell its Tower business by the end of this week.

So lot is there on the plate for patient investors.

It is pertinent to mention here that Jai Corp Ltd, incorporated in 1985, has traditionally been into manufacturing businesses like steel, plastic processing and spinning yarn. Apart from expansion of its plastic processing business, it is now focusing and investing in emerging opportunities like developing SEZs, infrastructure, venture capital and real estate.

On the other hand in case of RCom, the merged company's subscribers will have access to nationwide gold standard' 4G LTE services on the sub-1 GHz band, under RCom's existing nation-wide spectrum sharing/ ICR arrangements with Reliance Jio Infocomm.

The combined 2G, 3G and 4G networks position the merged entity for further strategic collaborations, and provide the entity the unique capability to offer a robust platform of services across all customer segments in all 22 telecom circles, including the mass market, leading to a superior customer experience at an affordable price point, and bringing the Internet to All.