Mandhana Industries Ltd: Accumulate

CMP: Rs.12.35

A buy was initiated in Mandhana Industries Ltd considering its low debt of around Rs.800 Cr and P/BV ratio of 0.07 at around  Rs.13.50 some days back. Maintaining a positive stance, the investors are suggested to continue to accumulate the scrip on every decline since:

(i) This is the parent company of Mandhana Retail Ventures Ltd, which has a debt of only Rs.800 Cr, inspite of its sales getting hit by Narendra Modi's destructive economic policies, like demonetisation.

(ii) The bankers have already invoked, strategic debt restructuring (SDR) and the company is in the process of completing all the formalities of the invocation....

(iii) The Mandhana Retail Ventures Ltd (Rs.163.50) is backed by the Bollywood film star, Salman Khan and the ace investors Rakesh Jhunjhunwala and Ramesh Damani. Rakesh Jhunjhunwala is having a member in its board. The retail arm is almost debt free.
(iv) Yesterday, the percentage of deliverable quantity to the traded quantity was whopping 67.90%. Every trade needs a buyer and a seller for any transaction to get executed; so the percentage of delivery is important to understand the mood of the traders/investors.

Mandhana Retail Ventures Ltd

CMP: Rs.164.30

This is the retail division of Mandhana Industries Ltd (Rs.13.57), which currently has 60

Exclusive Brand Outlets (EBOs), 259 Shop-in-shops (SIS) and presence in 22 states and 68 cities, is planning to open 20 new stores every year.

As of 30 June, 2017, the ace investors Rakesh Jhunjhunwala and Ramesh Damani hold 12.74% and 1% shares of the company, respectively. Promoters Pledge Holding(Rs.Cr.): 92.52.

Mandhana Industries Ltd

CMP: Rs.13.57

Mandhana Industries Ltd is a vertically integrated textile and garment manufacturing company in India. The company produces fabrics for the domestic market and garments largely for exports. They are having their presence across operations ranging from yarn dyeing to garment manufacturing. Their business includes designing, yarn dyeing, weaving, processing, dyeing and garment manufacturing.

The company operates in two segments namely, Textiles and Garments. The Textiles segment produces greige and finished fabrics, such as cotton fabrics; yarn dyed fabrics; and embroidered, embellished, and blended cotton fabrics. The Garments segment produces various readymade woven garments, such as mens shirts; womens blouses, tops, dresses, and skirts; casual bottom wear; kids wear; sports wear; and jeans wear.

The companys customers include Aditya Birla Nuvo (manufacturers of brands like Louis Phillipe, Van Heusen, Peter England and Allen Solly), Pantaloon Retail, ITC (manufacturer of brand Wills LifeStyle) and Turtle. Their overseas customers include brands like Tommy Hilfiger, Charles Vogele, RIP CURL, All Saints, Simint, Colins, Pepe Jeans and LAFUMA.

The company demerged its retail business into resulting company, named Mandhana Retail Ventures Ltd, and all the current and future retail operations of Mandhana Industries will be carried out through it.

The company hit a all-time high of Rs.345 a share on 22 March, 2016 and since then, it has been falling. Mandhana Industries listed on 19 May 2010, with an offer price of Rs.130 a share.

The Financial Institutions/ Banks hold 2.09%, while LICI holds 1.99% of the shares of the company. 

Promoters Pledge Holding (Rs.Cr.): 10.73.

Winning Strokes: Think Different

Mandhana Industries Ltd hit another buyer freeze in both the exchanges and it closed at Rs.14.21 in the BSE. Congratulations to all those who bought the scrip reading this blog.

Reliance Defence and Engineering Ltd today clocked a huge volume of more than 38 lakh shares and closed at Rs.61.10, marginally down from its previous closing price. Also, the percentage of  Deliverable Quantity to Traded Quantity was whooping ~50%, which means large scale accumulation is going on in the counter as the shares are changing ownerships. The stock is currently placed above its 50D, 100D, 150D and 200D SMAs and EMAs, which itself is a bullish indicator. I have mentioned earlier that this stock will make fresh 52-week high in the coming days; so remain invested.

Unitech Ltd further tanked to Rs.7 today after profit booking was suggested in the counter some days back at around Rs.8.50-8.70. It is expected to slide down further and come near Rs.6. It rose suddenly because a Gujarat based operator named Arvind Bajaj, who has a large fan following in that "Brothel" called MMB gave a buy on the scrip.

I have another scrip like Mandhana Industries Ltd which could give good returns in the short term. Those who are interested to know the name of the scrip should deposit a cheque of Rs.10,000 in my bank account. You can contact me at: suman2005s@rediffmail.com.

Reliance Communications Ltd: What to do?

CMP: Rs.24.30

Photo: Evolution Athletics

Off late the shares of RCom has been moving up, on the news of a debt restructuring (debt reduction) plan and stake sell. It has steadily moved upngrom the 52 -week low price of Rs.17.80 to the CMP of Rs.24.30 in both the exchanges.

It is pertinent to mention here that, the telecom sector is passing through a financial crisis. There is a huge combined debt of more than Rs.4.5 lakh crore on the mobile operators. RCOM has a debt of more than Rs.42,000 crore, while its EBITDA is about Rs.4,600 crore. The government has set up an inter-ministerial group to address the issue of financial stress of the telecom companies.

Also, RCOM wrote a letter to IMG on 4th July, asking it to do away with the 10% cross holding norm, so that it will be able to sell its equity to the existing operators. In such a situation, only two companies are in a position to buy RCOM’s equity – Bharti Airtel, which is market leader, and Reliance Jio. In last couple of years, Bharti has bought spectrum from Vodafone, Aircel, Tikona and Telenor.

However, Reliance Jio seems to be a major contender to buy equity in RCOM. It will help the company as it will get control over whole spectrum of RCOM. It will give further lease of life to RCOM and will give more time to set its house in order and sell its properties to ease debt burden.

Though both the moves look apparently positive, but the risks involved in the short term are very high.

Since the last few months, Narendra Modi has been in limelight for all the wrong reasons: (a) Fruitless demonetisation to curb black money which swelled the death toll basket to 100 - plus, with not much effect on curbing fake notes -- bleeding the exchequer of more than Rs.10,000 crore in the form of printing new notes and logistic costs and wasting the productive banking hours, apart from keeping the bank officials busy with unnecessary works and making their lives Hell.
(b) Taxing Indians hard and making the life of businessmen miserable in the name of GST,
(c) Visiting scores of Islamic countries and burning foreign exchange (generated from poor tax payers money) for "Improving relations" and generate more investments in the form of FDI and FPI and then landing up in Modi - like stupid blunder of visiting Israel to draw their wraths, especially Iran who is a bitter enemy of Israel and finally,
(d) The unnecessary military brinkmanship in the Chinese border at the behest of a tiny neighbour, who can't even manufacture a bicycle on its own. India has $70.8 billion trade relationship with China, Narendra Modi's moronic border pursuits is out to destroy all that has been built over the years; by the prudent foreign diplomacy of his predecessors. Narendra Modi's much advertised Chinese visits have already proved to be, "Just Waste of Time and Money".  Narendra Modi is himself a product of blunder by the people of India, who believed his words and voted him, thinking that he would usher in "Ram Rajya".

Firstly, the government of India or Narendra Modi's government is involved, which has done more harm to the telecom sector than good. In fact the BJP's vocal diatribes during the UPA Regime regarding its allegations of a botched - up, discovery price of telecom spectrum has already ended-up in a smoke. In other words, the last failed spectrum sale by the NDA government once again proved the futility of the tall claims of the BJP leadership, of an imagined Rs.1.5 lakh crore loss to the exchequer.

2ndly, according to a recent article in Financial Express, a consortium of lenders to Reliance Communications (RCom) is unwilling to accede to the telco’s demand for Rs.600 crore of additional credit. The funds sought were primarily in the form of non-fund-based bank guarantees.

In such circumstances, I feel it would be prudent to book profits in the short term at Rs.24-25 ranges and wait for the scrip to break above the strong resistance zone of Rs.25.50 - 26.50 ranges. Having said this, the long term investors can keep holding with a SL at Rs.22.20.

Winning Strokes: Think Different

Mandhana Industries Ltd (BSE: Rs.13.54 and NSE: Rs.13.50),  hit the Upper Circuits today in both the exchanges. Congratulations to those who bought the scrip on my suggestion.

Reliance Defence and Engineering Ltd (Rs.62.65) today closed near the day's high of Rs.62.90. The scrip will make new 52-week highs in the coming days. Remain invested and accumulate in intraday dips. The investors can keep a SL at Rs.61.60. There are more chances for the scrip to go up from here than go down -- MACD, PPO, etc are in Buy Mode. If Rs.67.70 is crossed, the immediate targets are Rs.72-77. The stock of RDEL is currently trading above its 50D, 100D, 150D and 200D SMAs and EMAs, with the chance of a "Golden Cross" happening in the short term, which is very BULLISH.
According to ET, 11 July, 2011: Reliance Infrastructure of Anil Ambani-led Reliance Group has received government approvals for its planned $1-billion greenfield aerospace park near Nagpur. The board of approval for special economic zones (SEZs) in the ministry of commerce has given its approval to the proposed aerospace park spread across 289 acres at Mihan near Nagpur.
The park aims to carry out business worth over Rs 200,000 crore over the next 30 years, the company said. In the first phase, the project will build manufacturing unit for production of aircraft, electronic warfare systems, radars, unmanned aerial vehicles, maintenance repair and overhaul for commercial aircraft, and complete eco system, including ancillary units and suppliers, to support these large projects. This development will be spread over 104 acres and the second phase will cover an additional area of 185 acres.
It is to be noted that Reliance Infrastructure acquired the erstwhile Pipavav Defence & Offshore Engineering in 2015 to make a foray into the sector.

Unitech Ltd (Rs.7.20) continues to tank, after profit booking was suggested in the counter, last week around Rs.8.70. Both GST and RERA is negative for the Real Estate sector. If you remember, I recommended the scrip before GST came into effect. And was since then asking to book profits and exit the counter.

Rolta India Ltd (Rs.61) is consolidating around the current price, before the next upmove. The long term investors should however keep a SL at Rs.58. 

Today's Short Term Call

Buy Mandhana Industries Ltd at Rs.12.35 (BSE) or Rs.13.45 (NSE) for short term targets of

Rs.17-21. Being Human, the retail division of Mandhana Industries, which currently has 60 Exclusive Brand Outlets (EBOs), 259 Shop-in-shops (SIS) and presence in 22 states and 68 cities, is planning to open 20 new stores every year.

Being Human, a clothing line with a heart was launched by Salman Khan, India’s A-list cine-star in 2012 and is globally licensed by The Mandhana Retail Ventures Ltd.

Winning Strokes: Think Different

1. Rolta India Ltd (Rs.60.20) moved to Rs.65.40 yesterday. The stock was recommended some days back at Rs.51.70-51.50 and later when it moved to Rs.53-54.85 profit booking was suggested, with future entry above Rs.54.70. Hope, you have made some money in the scrip.

2. Unitech Ltd, tanked to Rs.7.55 yesterday in the NSE, after touching an intra-day high of Rs.8.55. The scrip if you remember was recommended around Rs.5.05-5.25, some weeks back. Hope most of you who entered above Rs.6.50, make a short term killing in the scrip.

3. My recently recommended Reliable Defense and Engineering Ltd (Rs.62.10) moved to Rs.64.10, in the NSE, yesterday. Narendra Modi's maiden visit to Israel has brought positive sentiments in defense related stocks among the investors; as the Prime Minister has clocked and locked deals and has firmed up economic ties with the technologically advanced and innovation-driven nation. On the other side, his Israeli counterpart Benjamin Netanyahu announced the establishment of a $40 million innovation fund to promote technological cooperation between India and Israel. Reliance Defense is now a huge company in the defense sector, and the Stock could cross Rs.100 in the medium term - remain invested.

4. Those who had entered Future Enterprises Ltd (Rs.34.30) at around Rs.18-18.50, can book profits and exit the counter. You can again take entry above Rs.38.50. 

Join the Premium Services (at Festival Discount offer, till 31st December, 2017) or trade through my recommended brokerage house to stay ahead of others.

Flash News

Reliance Infrastructure Ltd (Rs.63.30) of Anil Ambani-led Reliance Group has received government approvals for its planned $1-billion greenfield aerospace park near Nagpur, reports the Economic Times on 11 July, 2017.

Important

1. Buy Reliance Defense and Engineering Ltd at Rs.61.50-62, for short term targets of Rs.72-73. As

Photo: The Hindu

mentioned on Facebook yesterday, any border dispute is positive for the defense related companies; just on sentimental point of view. The stock is having a strong support at around Rs.61.50-61 ranges, which I believe will not be broken in the short term. However, please do keep a SL of Rs.58, for any short term play.

2. Those who are holding Rolta India Ltd (Rs.54) can book profits and exit the counter as the stock is not taking up the positive triggers. You can again enter, when it gives a closing above Rs.54.70.

3. Those who are holding Unitech Ltd since Rs.5-5.25, can book complete profits at around Rs.8.75-8.25 and exit the counter. The GST and RERA seems to be negative for the real estate companies, especially those who are having high debts. If you remember, I recommended the scrip before the GST came into effect. 

4. Those who either bought or averaged the shares of Power Finance Corporation Ltd at around Rs.122-123, can look for targets of Rs.132-135 in the short term, if it is able to cross Rs.129.50, where possibly the first resistance comes. However, this stock was recommended as a good dividend paying scrip and those who are looking for a hassle free, income every year can keep holding this blue chip. Do please keep a SL of Rs.116. This stock along with another scrip, was recommended to the Premium Premium members, some days back.

5. The shares of RCom Ltd (Rs.24.35) after giving a close above Rs.22.50 is doing well today. Those who are still holding the scrip can keep a SL of Rs.21.40 and look for targets of Rs.27-29.

Note: This recommendation was already placed in the Premium Blog today, for the Paid Group members. 

Winning Strokes: Think Different

Today, my recommended Unitech Ltd (Rs.7.80) hit the Upper Circuits in the NSE. I mentioned some days back in this blog, that Unitech Ltd would do well, if it closes above Rs.6.50; which happened yesterday. However, Unitech Ltd is beset with many problems, apart from the negative impact due to GST. The investors are therefore suggested to book some profits and hold the rest with a SL of Rs.7.20.

Rolta India Ltd (Rs.53.20) went for some intermediate correction after it broke out of the previous range. The traders are suggested to accumulate the scrip on Intraday declines for targets of Rs.92-97. 

Rolta India Ltd: Buy

CMP: Rs.51.55

For the full year FY17, the net profit of Rolta India Ltd, declined 15.34% to Rs.105.49 crore in the year ended March 2017 as against Rs.124.60 crore during the previous year ended March 2016. Thus Rolta India Ltd is still a profit making IT company, whose large chunk of revenues come from domestic space and hence not much affected by currency fluctuations. 

Sales declined 20.48% to Rs.1454.91 crore in the year ended March 2017 as against Rs.1829.71 crore during the previous year ended March 2016.

......but it is surprising that the shares of Rolta India Ltd (Rs.51.55) are trading well below its book value Rs.173.39....only because of debt....??!! 

But inspite of high debts the shares of Adani Groups are flying, same is the case of DLF Ltd, HDIL and many such companies.

Rolta India Ltd's market cap is only Rs.848.21 Cr  against FY17 turnover of Rs.1454.91 Cr. It has an EPS of Rs.6.40 (standalone basis). 

The company works in areas like big data analytics, into cloud transformation, smart cities, mobility, cyber security and enterprise security and into enterprise IT and digital transformation kind of work in defence. This is the happening sector, post GST.

Rolta India Ltd is at present doing integration type of work more..and as far as its basic fundamental revenue line is concerned, it is in the range of about Rs 750-800 Cr in a quarter and is stable, as its has reduced low margin work, according to it's CMD, Mr.K P Singh. The company has tied up with BEL for the much coveted BMS project (Indian Defense).

In early 2015,  there were media reports that the exclusive consortium of Bharat Electronics Limited (BEL) and Rolta India Limited has was selected as a development agency for a more than Rs.50,000 crore Battlefield Management System (BMS) project by the Defence Ministry.

The BMS project, categorised as a “Make” programme under the Defence Procurement Procedure (DPP), will be one of the largest solutions to be indigenously manufactured for the country’s defence, according to BEL, a Navaratna PSU.

It said the project is meant to deliver Command and Control capabilities to the fighting echelons, operating at the forward edge of the Tactical Battle Area at the Battalion and Combat Group levels.

The press release said Rolta has also invested significantly in BMS technologies indigenously and has over the years delivered cutting edge Command, Control, Intelligence, Surveillance and Reconnaissance (C2ISR) systems, to the Indian Military. Deployed across the country, military commanders use Rolta Technology as a force—multiplier.

It said as a part of the consortium, Rolta will execute its role and responsibility in areas of BMS application software development and applicable licensing, GIS software and GIS data services.

Rolta will also jointly work with BEL for manufacturing subsystems for the soldier system, the overall system design, integration, installation, commissioning and maintenance of the BMS solution.

On the other side the discussions are still on, among bondholders to negotiate a debt restructuring. It is pertinent to mention here that Rolta India Ltd failed to pay interest of $6.8 million (~Rs.46.6 Cr) due on its 2018 senior unsecured guaranteed notes even after the expiry of the 30-day grace period. S&P observed Rolta’s liquidity situation deteriorated in Q4FY16 due to mounting receivables mainly from the government of India’s defence security projects. So, who is responsible: is it not the destructive economic policies of the government ?

On the other hand the tightening of norms for H-1B visas under President Donald Trump’s "‘Buy American, Hire American" campaign and a strong INR, is likely to have least impact on companies like Rolta India Ltd, which derives most of it's revenues from the domestic market.

Caution: The IT services sector is currently grappling with changes in how clients meet their IT requirements. Instead of using armies of engineers that throng these service providers, clients are increasingly turning to advanced software — often provided by small start-ups — to eliminate or reduce the need for IT manpower. This has impacted the global IT services business, dominated by talent and companies from India.

Buy the shares of Rolta India Ltd at Rs.51.55, but please do keep a SL at Rs.46.50. T1: Rs.72, T2: Rs.77, T3: Rs.92.

Important

1. Continuing with the bad news for the construction sector, the government today hiked the

GST rate for the construction sector to 18% from 12% earlier, but removed land value from computation of tax liability. Construction of complex, building, civil structure, including a complex or building intended for sale to a buyer, wholly or partly, will attract a GST rate of 18%.
Therefore, it would be better if you exit from the construction sector, lock, stock.and barrel, till more clarity comes out. Book profits in Unitech Ltd at Rs.6.05 and exit the counter. 

2. Rolta India Ltd after lot of correction seems to have formed a base. One can take position on Rolta Ltd at Rs.51.40-51.70, for short term targets of Rs.71-72.

3. Those who are still holding RCOM Ltd (Rs.21.70), should think of averaging only above Rs.22.50. There is further bad news that the company wants to surrender a part of the spectrum in select circles, as it is unable to pay installments, from the revenue generated.

4. Those who were looking for dips to enter Power Finance Corporation Ltd (Rs.122), can think of entering at Rs.122-123, for a target of Rs.170. Premium Members have already been recommended another very good divided paying counter.

Winning Strokes: Think Different

Shares of realty firm Unitech Ltd today surged nearly 7% after it sold 74 acres of land in Gurgaon, Chennai and Hyderabad for Rs.260 crore to boost cash flow and complete ongoing projects. With real estate sector facing multi-year slowdown, Unitech has decided to surrender a big chunk of land parcel in Noida to the local development authority as the company has been unable to clear dues of about Rs.4, 000 crore. The company had huge Land bank, which it is slowly capitalizing. 

Moreover, as the Affordable Housing Segment booms in the Indian real estate markets, the home loans below Rs.10 lakh have surged by 43% in the last fiscal year (FY2017).

The shares of RCom today crossed Rs.22, intra day, but could not sustain. Unless the shares of RCom close above Rs.22.50, the supply will always take it down. Moreover, those who have lost money in RCom (Rs.21.75), should start with fresh funds, to come out as winner.

I have recommended Two Dividend paying stocks to.the Premium members and also updated them on Rasoya Proteins Ltd (Re.0.15).

Yesterday, someone asked me why I don't frequent Money Control Message Board (MMB) and put my views there. I said, I am not too interested in visiti a BROTHEL, run by some PIMPs in the form of MMB administers/moderators too often; however much Sensual it looks from a distance.

Today's Call

Buy Unitech Ltd at Rs.5.25 for a target of Rs.10. The stock price is connected to J P Associates Ltd -- while the stock of JP Associates has crossed Rs.17, the stock price of Unitech Ltd is still near Rs.5, which looks absurd when according to a report, the construction companies are likely to.get benefited from input tax credit in the GST.

"Unitech has applied for a surrender of 221 acres of land. The matter is still not processed. However, once the land is accepted, we will make an estimate of the due and give them concessions against the debt," CEO, Noida Authority, Amit Mohan Prasad, said.

The Unitech officers when contacted confirmed this transaction. When enquired if this transaction closed their dues with authority, Executive Vice President - Real Estate Development, Unitech Limited Rana Rajesh Kumar confirmed, "Once processed, this will make Unitech DEBT FREE when it comes to Noida authority." 

Winnings Strokes: Think Different 

1. Simplex Projects Ltd hit another upper circuits in the  BSE and closed at Rs.51.50, reaching .y first target of Rs.51. Now what to do with Simplex Projects Ltd?

2. Prajay Engineers Synsicatre hit the buyer freeze at Rs.12.84 in the BSE, before closing at Rs.12.72 , up 4.50%. The stock is heading towards Rs.15--15.50.

3. My recently recommend Punj Lloyd Ltd jumped to Rs.19.20 before closing at Rs.19.95 in the NSE, with a gain of 6.46%. The company in a BSE filing said that it does not have 60% or more of its accounts categorized as NPA by the Banks as on 31 March 2016. The stock is heading towards Rs.25, from where it fell. Today, I will recommend a good dividend paying stock to the Paid Group Members.

Winning Strokes: Think Different

1. Prajay Engineers Ltd was recommended around for long term investors at Rs.10.80-11.20, 

at the end of last month. The stock hit the upper circuits today and closed at Rs.12 in the NSE with good volumes. However, in the BSE, the scrip is still ruling below Rs.11.70. The medium term investors can look for targets of Rs.15-15.50.

2. Simplex Projects was recommended as buy on 10 May, 2017 in this blog at Rs.34.65, with a price target of Rs.51-52. The s rip hit the UC today and closed at Rs.49.85 in the NSE. The long term investors can book some profits and hold with a SL of Rs.46.40, for targets of Rs.56-57. Its sister concern Simplex Infra is doing the Metro Railway project in Mumbai.

3. Today, Bhusan Steel Ltd, which is reeling with a debt of ~Rs.90,000 Crore moved up by 9.28% and closed at Rs.64.15. Following the same trend I feel the stock of Punj Lloyd (Rs.17.90) should also move up tomorrow, as the infrastructure and Real Estate stocks have started to move up. Speaking to a Business Channel from the sidelines of India Conference in Japan, Mr.Atul Punj, the CMD of the Punj Lloyd group, said the government is working to resolve the non-performing assets (NPA) issue. He said the EPC sector has made several doable recommendations to resolve the issue because EPC is not a sector where 5:25 package will work.
The company is trying to recover Rs.4700 crore stuck with customers for a long time and hope to recovery at least 50 percent of that in FY18, he said.
Punj Lloyd Ltd is having an order book of Rs.18,000 Cr plus.
Punj Lloyd traditionally provides integrated design, engineering, procurement construction and project management services in the energy and infrastructure sector. However, it has diversified its interests into aviation, defence and upstream through subsidiaries and joint ventures.

4. RCom today closed at Rs.19.05 in the NSE. Fresh positions can only be taken above Rs.22.50.

5. I have updated the Premium Members on Rasoya Proteins Ltd (Re.0.15) and soon will be recommending a good dividend paying scrip. The interested persons can join the Paid Service at the earliest.

Also, I have a scrip which can double in the short term. Those who can invest 2-3 lakhs (or more) on this B -group, BSE/NSE listed company can ping me at suman2005s@rediffmail. com or sumanm2007s@gmail.com. The profit sharing will be 50:50, between you and my firm.

Important

1. You can take fresh positions in Punj Lloyd Ltd at Rs.19.65, for targets of Rs.23-25. The

company came out with better numbers in Q4FY17.  Infrastructure developer Punj Lloyd Ltd, set up in its present avatar in 1988, had grown quickly into a $2.6-billion business house within two decades. 

Photo: The Times of India

For the full financial year 2017, the company reported a net loss at Rs.850 crore, lower than the Rs.1513 crore net loss reported for financial year 2016. The Group’s order backlog stands at Rs.18,561 crores.  Punj Lloyd Ltd's losses narrowed to Rs.181.58 crore in the fourth quarter of FY17. The company had posted a loss of Rs.396.15 crore for the year-ago. The order backlog is the value of unexecuted orders on March 31, 2017 plus new orders received after that date. 
With the government approval for a new strategic partnership policy in the defence sector, domestic manufacturers like Punj Lloyd Ltd, are hopeful of exploring huge order book (~Rs.2 lakh crore over the next 10 years) opportunities
Also, despite debt, Punj Lloyd's reputation of completing projects with compete quality control has remained intact, according to Industry watchers and analysts. Though the going is tough, the analysts do expect a revival in Punj Lloyd’s fortunes in the not-too-distant future.

2. Those who have invested in Gammon India Ltd (Rs.9.30) can think of switching to Punj Lloyd Ltd, because the scrip is not going anywhere during the last few days.

3. Those of you who have not exited RCom Ltd (Rs.18.30) till now, should keep the last SL as Rs.17.50.I however, find no hope of the stock price revival till August - September or in the short term unless some form of miracle happens. So, best option is to exit RCom and look for greener pastures, elsewhere.

Important Announcement 

1. Do you want to invest in a high dividend paying stock, which can also give a capital gain

of around 30% plus in a year.? You just need to buy and hold and book occasional profits.

2. Do you want to get updates on one of my small cap recommended counters, which I know many of you are holding? This stock can given 100% return in a year.

Then either join my Paid Service or Trade/Invest through my recommended brokerage house with a minimum portfolio size of Rs.1 lakhs by next Thursday, i.e. by 15.06.2017.

So, Rush me a mail at: suman2005s@rediffmail.com/sumanm2007s@gmail.com.

Will the RBI lower rates in the year? 

The answer is definitely yes, though the timing may be uncertain. While inflation is low and trending downwards, the outlook on possible negatives that may be driving inflation forward will be critical in this context. Presently, if inflation remains benign – and there is no reason to think otherwise, a cut of 25 bps may be expected in the next half though it is more likely to be invoked in October when the busy season starts.

---- Madan Sabnavis, chief economist at CARE Ratings, The Business Standard, 7 June, 2017.

Important

Photo: Live Mint

1. Those who have entered Prajay Engineers Ltd can either exitbat Rs.10.70 with minimum loss or keep holding with a SL of Rs.10.40.

2. The Prime Minister, Narendra Modi is likely to take a review of the stalled infrastructure projects. So many infrastructure stocks like MBL Infrastructure Ltd (Rs.35.05), HCC Ltd (Rs.42.45) are doing well. You can buy Gammon India Ltd at Rs.9.50, T: Rs.15. The stock looks good above Rs.9.45. The 1st resistance comes at Rs.10.60, followed by Rs.11.70 and Rs.12.90. In 2013 creditors approved a Rs.13,500 crore CDR package for Gammon. Gammon India in March said it has got members' nod to invest or buy up to 20% stake in Gammon Infrastructure Projects from wholly-owned arm Gammon Power Ltd. The company said it also got member's nod to authorise Gammon Power Limited, a wholly owned subsidiary to divest/sell/dispose off further equity shares of Gammon Infrastructure Projects Limited. Gammon India also announced that the National Company Law Tribunal, Mumbai Bench ('NCLT') has at the hearing held on 30 March 2017, approved the Scheme of Arrangement between Gammon India ('GIL' or 'the Transferor Company') and Transrail Lighting ('TLL' or 'the Transferee Company') and their respective shareholders and creditors ('the Scheme') for transfer of the Company's T&D Undertaking.

3. There are too many uncertainties involved in the share of RCom Ltd (Rs.19.45). I would therefore suggest you to book loss and again enter either above Rs.22.50 or Rs.30.