As expected KEC International Ltd, a global leader in the power transmission EPC business, moved up sharply after it received Two New Orders worth Rs.217 Cr. The first order worth Rs.120 Cr is from NTPC Electric Supply Company Ltd (NESCL) and the second one of value, Rs.97 Cr, is from Power Grid Corporation of India Ltd. Both these projects are important for KEC International Ltd. The NESCL contract is its second largest rural electrification project in recent times, the largest being Rs.160 Cr rural electrification project under RGGVY also from NESCL which the company won in June, 2008. With these two orders wins its well diversified order book now stands at a mammoth, Rs.4750 Cr, while the scrip is still trading at a dismal price of around Rs.422. This stock is expected to cross Rs.1000 in the days to come. The stock which was at Rs.20 in 2003-04, gave stupendous returns in the next 3-4 years. It touched Rs.922 on 8th November, 2007, giving more than 46 (forty six) times returns over the purchase price of Rs.20 (2003-04), and I am pretty sure that with the backing of the reputed RPG Group of Kolkata (do u remember CESC Ltd), this time also the "history will be repeated" and it will not be an exception. Just buy the stock at the CMP of Rs.424.10 and wait for a massive rally in the counter of KEC International Ltd in the weeks to come. This company also has massive order book position which is going to double by the end of CY08.
My latest Sunday Report Call Bhagyanagar India Ltd shone with good volume. This weeks's "Quickie Call" Ansal Buildwell Ltd moved up by more than 5%.
Yesterday, the company in question which has a whopping, Rs.11, 000 Cr (Eleven thousand crore) order book position is BGR Energy Ltd (BSE Code-->532930, Face Value-->Rs.10). The company' s order book is set to cross Rs.20, 000 Cr by the end of CY08. The stock is available at dirt cheap valuations at the CMP of Rs.324.65. A company which has such massive order book position should not trade at such low price. The company according to the highly placed sources is coming up with good results for the September, 2008 quarter. Hence keep accumulating the scrip at all declines as it could be another mini L & T or Punj Lloyd Ltd (Face Value--> Rs.2) in the coming months. If Punj Lloyds Ltd's scrip, which has a face value of Rs.2, could trade at Rs.308 (Rs.1540 of Rs.10, Face Value), then why should BGR Energy Systems Ltd (with Face Value of Rs.10) trade at a dismal price of Rs.324.65??!!! Just wait for a price discovery to take place.....
According to some sources, it has already entered into the BTG segment as well, probably through foreign tie-ups. This segment, currently dominated by a few players such as BHEL, L & T etc, would enable forward integration--BHEL & L & T, we know would benefit from the Indo-US Nuclear Deal to a great extent. If successful in this planned foray, BGR could be among the few integrated solutions providers for Power Plants (Read, Nuclear Power Plants). Another point which is to be noted for BGR Energy Systems Ltd, is that, its CMP of Rs.322, is at a sharp discount to its offer price of Rs 480 and hence has minimum dowslide. If investors were investing in the scrip at Rs.480, during the time of listing, I do not understand why they should not invest at Rs.324.65!!?? The stock of BGR Energy Systems Ltd, with an order book of more than Rs.11, 000 Cr and expected good results in September, 2008 quarter, should cross Rs.1000, in the next 12 months time frame---it is a multi-bagger in the making.
Much is talked about building of Nuclear Reactors, but what about Reliance Industrial Infrastructure Ltd (RIIL) in this sector??!! Reliance Industrial Infrastructure Limited, a Reliance Group Company, is mainly engaged in the business of setting up / operating Industrial Infrastructure. It already has a High-Tech team which is doing all the critical works for the Reliance Group. I have taken some Reliance Industrial Infrastructure Ltd yesterday, at rock bottom price of Rs.910. It is to be noted that RELIANCE Industrial Infrastructure Ltd, which carries the lowest profile among all listed entities in the Reliance group, has lately been a quiet performer on the bourses. Reliance Industries Ltd hold 45.43%, while Reliance Capital Ltd holds 1.06% stake in the company. It is an excellent buy at the CMP of Rs.907, especially aftermath the Nuclear deals and when the construction stocks are expected to go for a strong rally due to fall in the inflation and improvement in the mortgage environment in the US. In India, due to focus on the infrastructure development, the construction stocks will perform excellently well in the days ahead. India already has a massive growth of around 8% as compared to 2%--4%, growth for most of developed economies. Just accumulate this safest pick for good gains by, January, 2009. The stock is expected to give mind boggling returns within the next 9-12 months time frame. You should remember that you are buying a Reliance Group Company which has an equity capital of only Rs.15.1 Cr---just extrapolate the returns on such a small equity capital!!!!
Reliance Industrial Infrastructure Ltd announced a rise in standalone net profit for the quarter ended June 2008, inspite of the downturn in the Infrastruture Sector, proving its resilience and strong backing of the Reliance Group. During the quarter, the profit of the company rose 6.79% to Rs 50.14 million from Rs 46.95 million in the same quarter previous year. The company posted earnings of Rs 3.32 a share during the quarter, registering 6.75% growth over prior year period. Net sales for the quarter rose 16.58% to Rs 171.61 million, while total income for the quarter jumped 8.37% to 196.74 million, when compared with the prior year period.
Out of total 1,43,66,173 shares only 73,46,009 (around 73 lakhs) shares are open for trade, the rest of the shares are blocked. It is also into F & O Segment, with such low equity capital. One of the interesting point is that FII hold 1.40% of shares of Reliance Industrial Infrastructure Ltd, while mutual funds hold 0.22% of the shares of the company---this further limits the numbers of shares available for trade in the markets. Hence we are virtually looking at around 70 lakh shares of a Reliance Group Company for trade in the Stock Markets....is it not surprising??!! A couple of years back its board approved a proposal to recognise Reliance Industries Ltd. as its controlling stakeholder of Reliance Industrial Infrastructure Ltd. Recently the company was alloted 1,395 acres of land to set up a SEZ by Haryana State Industrial and Infrastructure Corporation (HSIIDC). Just go ahead and buy this Fixed Deposit.....
Yesterday's Intra Call and BTST call Rolta Ltd reached the target of Rs.350, yesterday itself.
Ennore Coke Ltd moved up to Rs.54.7, with huge volume and remained above Rs.50, in most of the time of the trade. What is cooking in the counter?? The stock which started rally from Rs.29, gave mind boggling returns to the PAID MEMBERS and to my PMS Clients/Friends, who were asked to accumulate the scrip selling some select stocks in their portfolio. This is what is needed---one should know where to book profits and where to average out.
Ram Informatics Ltd also moved up in tandem with the improvement in the US economy. The company has good order book position and is all set to move above Rs.20, within the next few weeks. It also clocked good volume in the Yesterday's trade.
I am going to recommend another IT scrip which is a potential multi-bagger, to the Paid Members, within a short time. I am doing deep research on the company and if the things are found to be conducive for investments, it will be recommended to the Paid Group members and my PMS Clients shortly.
Pratibha Industries Ltd recommended to the Paid Groups last month in the Sunday Report, at around Rs.210, crossed Rs.284 yesterday.
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