Soma Textiles and Industries Ltd rises from Ashes, hits 20% Buyer Freeze: Jhunjhunwala Vanaspati hits the buyer Freeze: Radhe Developers Ltd hits the buyer Freeze on early trade on rumours of Rights issue and some headway in the Nepal Government issue:
Premier Explosives Ltd is available at the price of penny. The company could get the benefits from the Indo-US nuclear ties. The company is now fully focussed on defence. There are some good news in the offing in the counter:
Bharat Seats Cools down a bit after buoyancy in the early morning trade:
TV Channels Should stop bringing the analysts who have no Knowledge about Vishal Exports. It is not a "Penny Stock" by any yardstick. These fools whom TV Channels call analysts also said the same thing on another of my Multi-bagger--> Hazoor Media and Power Ltd:
Crude Rises again, so buy Selan Exploration Technology or Alphageo:
Dow Ends Down 48 at 12,738, Nasdaq Ends Up 5 at 2,518 on Continued Concern About US Inflation. The inflation news and Fed comments followed a profit report from Hewlett-Packard Co. that dampened sentiment on Wall Street.The Nasdaq composite index closed at a six-year high. Only last week Wall Street rallied after Federal Reserve Chairman Ben Bernanke told Congress that inflation appeared to be moderating as the economy was showing sustainable growth:Amid Iran's nuclear defiance, the U.N. nuclear watchdog finalized a report to be released Thursday that is expected to formally confirm the Islamic republic's refusal to freeze enrichment — a conclusion that could subject it to tougher U.N. sanctions:
Today the markets will be cautious ahead of F & O expiry and taking global cues into consideration: Keep buying fundamentally good stocks in the Mid and Small cap space, as the rally in this space will start again:Please Stop Viewing the markets on a Daily basis:
STOCKS Which LOOKS GOOD for Superb RETURNS:
1.Jhunjhunwala Vanaspati Ltd:
This is an Inflation Positive Stock, which means that it will rise along with the inflation. Since the price of Oil and oil products are shooting over the roof, the company should benefit from this move. Besides this the company has a whooping book value of Rs.62.4 and EPS of Rs.18.45, which could take the stock past Rs.150. In the December, 2006 quarter taking the help of the buoyancy in the prices of its products the company’s operating profits (Rs.4.4 Cr against Rs.2.29 Cr) took a quantum jump. The Gross Profit also improved from Rs.4.51 to Rs.5.8 Cr. The Net profit shot up from Rs.3.60 Cr to Rs.4.31 Cr.
Synopsis: Jhunjhunwla Vanaspati:
One of the fastest growing professionally run industrial group - Jhunjhunwala Vanaspati Limited ( JVL ), Varanasi ( U.P.) India, is the single largest unit manufacturing Vanaspati Ghee & Refined oil and is headed by Mr. D.N. Jhunjhunwala, Chairman & Managing Director a person with razor sharp business acumen & entrepreneurship.
The company is ISO 9001: 2000 certified with its national & global presence. It has a work force of 1000+ employees with a running turn over of Rs. 500+ Crores & projected growth of Rs. 1000 Crores in near future.
The company has also its strong presence in the market with its Distributors, Depots & C & F agents at different locations all over the country. For the benefit & convenience of its consumers, the company is having diversified range of products which are economical too.
JVL is importing crude Palm Oil, Soyabean Oil & Hydrogenated Vegetable Oil from Malaysia, Indonesia, Singapore, Argentina, Brazil & Sri Lanka in larger quantities.
Besides this the Centre's decision to de-canalise and allow duty-free vanaspati imports of up to 2.5 lakh tonnes (lt) annually from Sri Lanka has created a jubilation to some of the players who have manufacturing Units in Sri-Lanka in the 7,000-crore plus industry. Units producing from Sri Lanka have to pay a nominal $25 per tonne. Cost difference on the final product is around Rs 8,000 per tonne.
There are around a dozen vanaspati units set up in Sri Lanka by Indian companies. Among them are Mr Kailash Shahra's Ruchi Group (through Paras Industries Pvt Ltd), Adani Wilmar (Pyramid Lanka Pvt Ltd), Mr Vijay Gupta's Gujarat Ambuja Exports, Mr Ramesh Chandra Agarwal's Dainik Bhaskar Group, Mr Ravi Jaipuria's Accor Industries Pvt Ltd (`Cream Bell' brand), Mr Vijay Data's Vijay Solvex Ltd, Mr D.N. Jhunjhunwala's Jhunjhunwala Vanaspati Ltd, Mr B.K. Goenka's Foods, Fats & Fertilisers and the Vadodara-based Continental Vanaspati.
All of them have been licensed by the Sri Lankan Government and are eligible exporting entities for supplying the 2.5-lt duty-free quota. So, they stand to benefit from the November 21, 2006, public notice issued by the Directorate General of Foreign Trade (DGFT). The notice has said importers wanting to bring in duty-free vanaspati from the island nation will have to enter into pre-purchase agreements with any of the eligible exporters.
Since the Sri Lankan Government has made it clear that no further licences will be issued under the Indo-Sri Lanka Free Trade Agreement, the ones who qualify as eligible exporters will make a killing. Interestingly, out of the 16-odd licences issued, Indian companies account for a dozen. With bulk vanaspati prices in India ruling at roughly Rs 50 per kg, the total value of 2.5-lt duty-free imports would be about Rs 1,250 crore.
On the other hand, there are many leading domestic players without a manufacturing base in Sri Lanka. They include the likes of Agro Tech Foods (`Rath'), Bunge India (`Dalda'), Siel Ltd (`Panghat'), Amrit Banaspati (`Gagan' and `Ginni'), Wipro, Liberty Oil Mills, Punjab Markfed, Rasoi Ltd, Kanchan Oil Industries, Dinesh Oils and Kanpur Edibles.
The units here are at a disadvantage — they have to import crude palm oil (the main raw material) at 78.2 % duty, whereas those producing from Sri Lanka have to pay a nominal $25 per tonne. The cost difference on the final product comes to Rs 8,000 per tonne or Rs 20 crore for a factory with 25,000 tonnes per annum capacity.
Besides Sri Lanka, there is a similar provision to import up to one lt at nil duty under the Indo-Nepal Treaty of Trade. Again, the facility to import raw material at zero duty has encouraged Indian companies to produce vanaspati in Nepal. THIS COMPANY OF THINKING OF MAKING A KILLING IN THIS FRONT ALSO.
FOCUS :
a).To be right at the top in the field of Vanaspati Ghee & Refined Oil.
b).Gearing up its expansion program overseas specially in Sri Lanka.
c). Further development & diversification projects, as the company has already acquired 300 acres of land near Varanasi. HENCE JHUNJHUNWLA VANASPATI IS NOW ALSO A REAL ESTATE STORY.
2. Radhe Developers Ltd: Some rumours are floating in the market that the company could come up with the Rights Issue (declared earlier at Rs.17.5) soon. The promoters' have increased stake in the company and it seems there is something cooking in the counter. There are also rumours that the company has progressed somewhat in the Nepal Government issue. One of the sources confirmed that the company has good amount of land in and around Ahmedabad. The company is also going a number of Real Estate projects in Gujarat. BUT THE CURRENT BUZZ SEEMS TO BE DUE TO RIGHTS ISSUE OR A PROPOSED IPO. THE RESULTS OF THE LAST QUARTER WAS NOT UPTO THE MARK AND THIS IS ALREADY FACTORED IN THE CURRENT PRICE. IF THE COMPANY IS ABLE TO PUT PRIVATE PLACEMENT AS PROPOSED EARLIER THE STOCK COULD SHOOT PAST RS.60.KEEP ADDING ON ALL DECLINES.
3. Selan Exploration Technology Ltd: The company would benefit from the recent buoyancy in the Crude oil market. Two of the drilling and exploration companies like Aban Lloyd and Alphageo (hitting circuits for some days), are doing extremely well on the bourses.
The Selan Exploration Technology has almost finished renovating 10 of its wells in Bhakrol Oil field in the oil rich Cambay basin. The company has completed the drilling in some of the wells, where it is now almost confirmed that the company has found crude oil. Since the company undertakes drilling in the proven oil and gas field and hence it will be impossible to think that the company has gone in for drilling and have not found oil. Once the news about the Oil find become public and get attested from the company souces the stock will head towards Rs.500 mark. Keep buying and do not sell a single stock..
3. Soma Textile Industries Ltd: Yesterday the Scrip hit the buyer freeze on sustained buying. The company has recently completed the Rs.87 Cr expansion and also the company would benefit from the cheap electricity it is getting from the state government. Also there are talks of private placement at a higher price. There are also rumours of company making joint venture with an Overseas retailing giant. The company has a healthy order book position and the FRUITS OF EXPANSION WILL START TO SHOW UP IN THE BALANCE SHEET FROM FOLLOWING QUARTER. I am placing a first target of Rs.70 and if the government comes up with some incentives to this sector the stock h as the ability to cross Rs.120 mark. Keep watch!!
4. Vamshi Rubber Ltd: The company would complete the expansion plan in the next month. The December, 2006 quarter results were excellent. This company has a major presence in the Retreading tyre space. Also the company makes Gum and Machinery for the tyre industry. The company gets technological assistance from one of the Top International Giant in this field. I hope the stock would cross Rs.24—Rs.30, with May, 2006. The company has 4 acres of land in Hyderabad. The best part is that the company is able to pass on the increased cost of raw materials to the end users.
Also keep holding Bharat Seats with a SL of Rs.106 and Also, keep holding Vishal Exports Overseas Ltd with a SL of Rs.1.9. Those persons who do not know anything about the company are coming to the TV Channels uttering whatever they like. I saw someone telling that it is a penny stock. I do not know what is the definition of a Penny Stock, but it is definitely a good company, having presence in lot of Verticals. Off late promoters could have sold some shares to fund some of the Expansion plans of the company—but I am not sure on this front. The company has recently tied up with Adani Group of Gujarat for Mega Power project. I am accumulating the stock on all declines. I see this stock reaching at least Rs.8—Rs.9 within the next 12—18 months time. The same story is for Zigma Software Company Ltd. Please keep holding this stock which came out with positive results(as predicted earlier), in the December, 2006 quarter. Keep accumulating the stock on all declines.
Chandra Prabhu International’s Jatropha Plants might start to bear fruits from the end of this Year(2007). The company would start to implement the Overseas contract, from the end of this year according to a source close to me. The company would start drilling and exploration of Coal in Collaboration with an Overeas Partner, within a short time. The company was about to start drilling from the last month, but due to some government’s policies, it has decided to go slow on this issue.
Yesterday’s Market round up:
The BSE Sensex remained volatile throughout the day. Althought trading was devoid of wild swings, the benchmark Sensex frequently moved in and out of the red. After opening weak, the Sensex had recovered but finally succumbed to pressure at higher levels in the late afternoon. Volatility is expected to continue tomorrow (Thursday, 22 February) as well, when the February derivative contracts are scheduled to expire.
The 30-shares BSE Sensex lost 64.89 points, at 14,188.49. It recovered from the day's low (14,157.72), and went on to strike a high of 14,312.88 on back of short-covering.
The S&P CNX Nifty lost 10.75 points (0.26%), to settle at 4,096.2.
The total turnover on BSE amounted to Rs 4086.7 crore, compared to Rs 3886 crore on Tuesday.
The market-breadth, a measure of strength in the broader market, ended negative. Out of the 2,647 shares traded on BSE, 1,079 advanced, and 1,514 declined. Just 54 shares were unchanged. The market-breadth was strong in the opening session, but turned negative, as selling in small-cap and mid-cap stocks set in by early afternoon.
Among the 30-Sensex pack, 15 advanced while the rest declined.
Hero Honda was the top gainer, up 3.27% to Rs 739.5. It had struck a high of Rs 743, and a low of Rs 720.10. Auto stocks are rejoicing after the recent cut in fuel prices. Maruti Udyog (up 0.22% to Rs 896) and Tata Motors (up 0.37% to Rs 858.90) were the other gainers in the auto segment.
Housing finance firm HDFC gained 1.20% to Rs 1672.55, on reports that it may announce a hike in interest rates during this week.
Bharti Airtel (up 1.88% to Rs 806.30) and Gujarat Ambuja Cements (up 0.85% to Rs 131.15) were the other big gainers.
Metal producers Hindalco (up 1.38% to Rs 150.50) and Tata Steel (up 2.49% to Rs 455.20) gained on the back of firm metal prices globally.
FMCG major Hindustan Lever (HLL) was down 2.10% to Rs 195.50, on high volumes of 22.98 lakh shares. During trading hours on Tuesday, HLL reported 1.9% fall in net profit in the December 2006 quarter to Rs 511 crore from Rs 521 crore in the December 2005 quarter.
Index heavyweight Reliance Industries was down 0.59% to Rs 1406.15, extending Tuesday’s rise.
Ranbaxy Labs was the top loser, down 3.29%, to Rs 382.50. The Indian pharma behemoth had slipped to a low of Rs 381.90, while investors worried over possible equity dilution if Ranbaxy acquired Merck's generics drug business. The company, however, scotched reports that it was planning an issue of shares in the US, or any dilution of stake by founders to fund the acquisition.
Frontline IT stocks were under pressure. Infosys (down 2.25% to Rs 2312.90), TCS (down 0.87% to Rs 1285.95) and Satyam Computers (down 3.16% to Rs 462.20) suffered.
L&T lost 0.63% to Rs 1657.30. It plans to invest Rs 10 billion ($226 million) to build a shipyard for very large crude carriers, a newspaper reported on Wednesday.
Bosch Chassis Systems India (erstwhile Kalyani Brakes) jumped 6.20% to Rs 933.75, after its board recommended a 1:1 bonus issue. Bosch Chassis posted a net profit of 5.97 crore in Q4 December 2006 compared with Rs 11.53 crore in Q4 December 2005. Net sales in Q4 December 2006 rose to Rs 124.65 crore from Rs 112.36 crore in the year ago quarter.
Yokogawa India advanced 3.90% to Rs 466.20, after Yokogawa Electric Corporation, Japan (Acquirer), accepted the offer at the discovered price of Rs 478 per fully paid share and will pay for all the valid shares submitted to delist the company.
Gail India slumped 4.20% to Rs 282.75, on 10.88 lakh shares after it scheduled a meeting of the board of directors on 6 March 2007, to consider the proposal of a special interim dividend for the financial year 2006-07.
IFCI topped the volume chart for the eighth consecutive day since NSE allowed fresh positions in the derivative segment of the scrip last week. IFCI surged 5.02% to close at Rs 30.35 on garnering a huge volume of 3.14 crore shares, while Zee News surged 4.45% to close at Rs 41.05, on a big volume of 74.37 lakh shares for the same reason as IFCI.
Lupin surged 8% to Rs 634.65, after the company on Tuesday inked a pact with Laboratoires Servier, France, for the sale of certain patent applications and intellectual property rights for a blood-pressure drug. The agreement for the drug, perindopril, holds good for multiple countries.
Apollo Hospitals Enterprise gained 3.8% to Rs 498.30, following a report that the company is readying itself for a major acquisition in the United Kingdom.
SKF India gained 3.5% to Rs 311.30. After the company posted a net profit of Rs 31.73 crore for the quarter ended December 2006 compared to Rs 10.25 crore for the quarter ended December 2005. Total income increased from Rs 256.47 crore for the quarter ended December 2005 to Rs 381.66 crore for the quarter ended December 2006.
SKF India also posted a net profit of Rs 101.96 crore for the year ended December 2006 compared to Rs 64.07 crore for the year ended December 2005. Total income for the fiscal increased from Rs 816.01 crore (Rs 1350.83 crore).
Sintex Industries jumped 5.2% to Rs 224.20, after it won an order worth Rs 750 crore from the Gujarat Government.
Manugraph India surged 3.27% to Rs 202, after the company said on Tuesday that Reliance Mutual Fund had acquired a further 3.7% in the company, taking its stake to 5.96%. On 15 February 2007, Reliance Mutual Fund purchased shares of 11.25 lakh shares of Manugraph (3.7% stake) at Rs 185 through the open market purchases on BSE– of which 9.08 lakh shares were obtained from foreign fund Citigroup Global Markets.
Arcelor Mittal, the world's largest steelmaker, reported a 2006 core profit of $15.3 billion on Wednesday, slightly below market expectations. Analysts had estimated EBITDA (earnings before interest, tax, depreciation and amortisation) on average at $15.4 billion.
The steel giant had previously told investors it expected core earnings between $15.2 - 15.4 billion. It was the first time the newly formed group presented annual results after Mittal Steel's successful takeover of Luxembourg-based Arcelor in 2006.
The Hang Seng index was up 0.41%, while the Japanese Nikkei 225 index was down 0.14%.
The Bank of Japan (BoJ) raised its key short-term interest rate from 0.25% to 0.5% - the first hike since July 2006. The hike is in line with analysts' expectations. The move came after the country's economy was confirmed to have recorded stronger-than-expected growth during October-December 2006.
The nine-member BoJ Policy Board voted 8-1 in favour of a rate hike at the end of a two-day meeting. The bank had refrained from tightening credit for seven months after ending its zero-interest-rate policy.
Japan's gross domestic product grew an annualised 4.8% in the October-December period from the preceding three months in real terms, extending its rising streak to eight quarters. The pace of expansion was faster than the average market projection of an annualised 3.8%, and 0.8% marked in the July-September period.
US stocks rose on Tuesday, as investors scooped up recently battered tech shares amid a flurry of merger deals, including one between Sirius Satellite Radio and XM Satellite Radio, and as oil prices eased. The Dow Jones industrial average gained 19.07 points, or 0.15%, to a record 12,786.64. The Standard & Poor's 500 Index added 4.14 points, or 0.28%, to 1,459.68. The Nasdaq Composite Index climbed 16.73 points, or 0.67%, to 2,513.04. The Dow earlier touched 12,795.93, a new lifetime high for the average.
US crude prices fell for a third day, down 22 cents, to $58.63 a barrel, after a cold spell in the world's top consumer ended, with some forecasters expecting moderate March weather.
Meanwhile, companies are expected to breathe a bit easy as statutory taxation rates are likely to be reduced by 3% in the Union Budget, either through abolition of 10% surcharge, or reduction of corporate tax from the current level of 30%. Either corporate tax rate is likely to be reduced to 27%, or surcharge will be abolished to give 3% relief to companies, reports said.
The statutory rate of taxes on companies stands at about 33.66% with corporate tax of 30% and surcharge of 10% along with education cess of 2%. Corporates are demanding around 5% cut in taxes, which is not likely to be accepted entirely, sources said adding the cut may be limited to 3% only.
The government collected close to 50% more corporate tax, at Rs 97,315 crore during the first 10 months of this fiscal against Rs 65,094 crore during April-January period of the previous fiscal.
In the previous Union Budget, Finance Minister P Chidambaram had cut corporate tax rate to 30% from earlier 35%, but increased surcharge to 10% from 2.5%.
Meanwhile, gold was locked in sideways trade amid extreme volatility in the currency markets, COMEX gold slipped after hitting a high of $665 and was currently trading at $662, up $1 as markets concentrated on the upcoming US CPI data, which can spell a further sell off for the US dollar, assisting Gold. MCX gold also traded in a sideways manner following these moves. MCX April was confined to a range of Rs 9459 -9509 and shed 1.81% in open interest.[With inputs from Internet]
I AM FACING SOME SERIOUS INTERNET RELATED ISSUES AND HENCE DELAY IN GIVING UPDATES iN THIS BLOG AND IN THE YAHOO GROUP....PLEASE BEAR WITH ME. KEEP BUYING / HOLDING AND REMAIN HAPPY.
More in the following positings...
Best wishes,
Suman Mukherjee
India.
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