Keep adding Silverline Technologies Ltd, ahead of Board meeting. Its media division is performing excellently, after its sucess of "Hanuman". There are already murmurs in the market that Silverline Could be another Matrix Laboratories Ltd(Those who are in the market for the last 4-5 years must be knowing that,the shares of Matrix Labs, Rs.10 face value, were at Rs.18 in 2003-04)or Lupin Ltd (The shares of Lupin Ltd was at Rs.9. It is to be noted that this company was started with a base capital of Rs.5000, only). Many do not know that Silverline Technologies Commanded a share price of Rs.1200, in 1999-2000, during the height of Dotcom boom. The company clocked a turnover of Rs.700 Cr at that time. Can we expected a target of Rs.50--Rs.70, after the board meeting and demerger, within the next 3 months time frame????: Keep adding Premier Explosives Ltd on all declines or at CMP: Those are holding Crompton Greaves and IFCI Ltd please keep holding with a trailing SL of Rs.5% from the current price. I have already mentioned to the Premium Group Members in last Sunday that the probable price for the acquistion of shares of IFCI Ltd, by a strategic investor, could be in the range of Rs.80--Rs.82: Those who are holding Jhunjhunwala Vanaspati Ltd from Rs.50-Rs.54, range, book some profits. Book some profits in Khoday Ltd: G M Breweries Ltd afer its mention in the Report on last Sunday, sent to Premium Group members, has again started to hit the buyer freeze: Keep adding Ansal Buildwell Ltd on all declines:Jamna Auto Ltd came out with wonderful results speaking both Sequentially and QoQ. Keep adding at the CMP.The auto sector is expected to move further, as the Banks might soon reduce the PLR; also the festival season is round the corner, when the offtake from Automobile Companies are the highest. During the June quarter, the Company has raised Rs 45 Cr through Preferential Issue. Upto June 30, 2007, the company has utilised Rs 15.77 Cr for repayment of term loan out of the proceeds of the preferential issue. The Company proposed to set up a manufacturing facility at District Saraikala-Kharsawan, Jharkhand. It will be futile to look at the results of Jai Parabolic Springs Ltd, as it is already merged with Jamna Auto Industries Ltd from 1st July, 2007: Today the markets could be a little subdued due to government's plan to limit the ECBs.....The government has announced fresh restrictions on external commercial borrowings (ECBs), limiting their use for rupee expenditure. Companies will now be able to raise only up to $20 million abroad for rupee expenditure and only with prior RBI approval; but the overall bullish trend is expected to continue: Here is an Old news of the some defence related companies, culled from the Internet: Military might: Make way for defence stocks: Investors can benefit from private sector involvement in India’s defence budget. India’s ambitions of becoming a regional power entail higher defence, space, nuclear and internal security expenditure by the government. The Union budgets have ample provisions providing for India’s internal and external security.

As per a United States Congressional Research Service Report, India was the largest arms purchaser in the developing world from 1998 to ’05, striking deals worth $20.7 billion. India is likely to make purchases of more than $10 billion every year for the next 10 years. In the near future, the biggest deal will be the purchase of 126 multi-role fighters for the IAF at $6.5-10 billion.

Global defence companies are looking to tie up with Indian companies to bid or part-produce orders. Corporate houses had lobbied with the government to grab a slice of this market and had set up specialised divisions to cater to the defence industry. Tata Power’s Strategic Electronics Division, Tata Advanced Materials and the defence divisions of L&T, M&M, Ashok Leyland and Kirloskar are involved in development of defence products. But large defence orders for complete systems have eluded the private sector. The market for complete systems is dominated by public sector companies like Hindustan Aeronautics, Bharat Electronics (BEL), Bharat Dynamics, Bharat Earth Movers, Mazgaon Docks and Goa Shipyard.

Mid-to-small cap companies produce sub-systems for public sector defence companies or smaller, integrated systems for armed forces like Astra Microwave, Premier Explosives etc.

A critical driver that will benefit Indian companies is the defence offset clause, introduced in the Defence Procurement Policy, ’06. This is applicable to all acquisitions where the tender value exceeds Rs 300 crore. It requires foreign vendors to provide orders to Indian companies equivalent to 30% of the contract value. India’s defence capital expenditure for FY07 was estimated at Rs 37,458 crore against the FY06 revised estimate of Rs 33,075 crore.

Historically, around 70% of India’s capital defence budget was spent abroad. The domestic industry is now getting a larger slice of the defence budget. In December ’06, L&T and Astra Microwave became the first recipients of the defence offset clause when ELTA, an Israeli defence company, awarded both companies with a Rs 250-crore order to supply radar components for an IAF radar order worth Rs 900 crore.