WINNING STROKES: THINK DIFFERENT:

Departure of Dr.Reddy from the corridors of RBI, is expected to spell good days for the markets ahead; unless the present incumbent turns out to be a carbon copy for the former eccentric supremo. This time we might see that RBI relaxing norms in the case of P-notes (in consulation with the SEBI), ECBs and in terms of controlling inflation by allowing Rupee to appreciate. The earlier governor mismanged the economy to such proportions that we now have an Inflation of 12%-plus. His too much control regime reminded of the license raj which existed in the last century. The market could rally on the news of the appointment of the new governor of RBI:

Anyway, my Recently Recommended U B Engineering Ltd hit the buyer freeze. The fact that steel prices are expected fall in the days ahead (refer to my latest Sunday Report), and status quo is maintained for the cement prices, are very good for construction and real estate stocks. Besides with the crude oil coming down, there are chances of RBI could go for softer interest rate regime going forward:

Kamanwala Housing Construction Ltd hit the buyer freeze, after which it cooled down a bit. The company has come up with a huge Bonus to the share holders. Even in this downturn the Total Income and Net Profit of the company showed significant increase in the June, 2008 quarter as compared to the same period previous year. The June, 2008 quarter EPS is a whooping Rs.8.99: Ennore Coke Ltd hit the buyer freeze with good volumes:

Ram Informatics Ltd moved upto Rs. 14.5 before cooling down a bit. RAM Informatics Ltd is an ISO 9001 certified company for its software development and education & training services. The company leads in providing e-Governance solutions to the Government sector, Enterprise Applications integration solutions besides Banking, Insurance and retail-business sectors. As an end-to-end software solution provider, the company identified the need to develop the right technical manpower to meet the ever-changing technology needs of the IT industry.In addition, keeping in view the dynamic nature of the corporate world, which demands effective communication and efficient interpersonal skills for greater productivity in the work environment, RAMInfo provides extensive need based training for individuals and corporates through well-researched material and experienced faculty. Our expertise in voice and accent training also makes RAMInfo a leading provider of call center training for corporates serving domestic and international clients. Some of its closest peers are Educomp Solutions Ltd, Everonn Systems India Ltd,(Both the names were mentioned in Yahoo Group, SumanSpeaks) Vishu International Ltd etc:

What are the scrips recommended in the latest Sunday Report and as "Quickie Calls": Kavveri Telecom Products Ltd which was asked to accumulate in the Sunday Report moved up with good volumes:

Sunil High Tech Engineers Ltd is now being recommended by Angel Broking Ltd. This is one of the finest stocks in the infrastructure space:

When the Construction Stocks has started to move up on the Status Quo on the Cement Prices and at the same time on the expectation that the Steel Prices are going to fall significantly in the next 6 months time frame, now is the time for Reliance Industrial Infrastructure Ltd (http://www.riil.in/index.html) to move upto to Rs.1500. The stock has long consolidated around the current price band, is now expected to move up sharply from here.

Reliance Industrial Infrastrucutre Ltd: The Company, is mainly engaged in the business of setting up / operating Industrial Infrastructure. The Company is also engaged in related activities involving leasing and providing services connected with computer software and data processing.

The Company has set up a 200-millimetre dia twin pipeline system from the Refinery of Bharat Petroleum Corporation at Mahul, Mumbai, for transporting petroleum products like Naphtha and Kerosene to the Petrochemical Complex of Reliance Industries Limited at Patalganga.

It has also erected and commissioned facilities, such as -(i) Supervisory Control and Data Acquisition (SCADA) system and (ii) Cathodic Protection system for the above pipeline system.It has also constructed -(i) Jackwell at River Tapi and an 18-kilometre long 1200-millimetre dia Raw Water Pipeline System in Hazira.(ii) 70000 kilolitre petrochemical product storage cum distribution Terminal at Jawaharlal Nehru Port Trust Area in Nhava Sheva, Uran (Raigad District) in Maharashtra.

The Company has acquired and deployed various construction machinery on hire for use at various construction sites all over India.The Company has its operations in the Mumbai and the Rasayani regions of Maharashtra, Surat and Jamnagar belts of Gujarat as also at other places in India.

Resources and Liquidity : The debt to equity ratio of the Company is 0.40:1 as at 31st March, 2008 as compared to 0.87:1 as at 31st March, 2007. The Company's long term debt is Rs.59 crore as on 31st March, 2008. Industry Structure and Developments : The infrastructure related project and construction industry in India is characterised by a few large and a very large number of small to medium size players involved in ports, roads, real estate construction, IT Parks etc. Due to this involvement of wide range of companies and due to government policies, the infrastructure sector continues to be liberalised and allows private sector participation in virtually all infrastructure sub-sectors. The sectors such as ports and roads are now open to private investors together with financial incentives for private sector entry and operation. Indian economy continued to perform well and remained one of the fastest growing economies. Government of India continues to provide, in its annual budget, for major expenditure outlays on infrastructure like highways and ports. The Company has been getting orders for setting up port facility and supply of IT Infrastructure equipments and software on lease. This is expected to provide growth opportunities to the Company.

The Company will continue to maintain its focus in the infrastructure and project related areas. The outlook of the future prospects of the company look very bright.The Company has consistently paid dividend since the financial year 1991-92.

Steel Stocks Outlook (From Sunday Report): Down in this week on weakening prices:

Book profits in Indsil Electrosmelts Ltd:

• Steel stocks are likely to be under pressure in this week as the steel prices soften in the domestic as well as global markets. The fall in global prices comes at a time when steel makers would have liked to offset higher raw material costs. Global prices are softening making the imports cheaper, thus there is little scope for a price increase next month.
• Retail steel prices in the country have been on the hold since early May, but contract prices have been on the rise. The global steel prices have fallen nearly $150 per tn in the last one month, as demand in North America and Europe slows down. In China, which consumes nearly one-third of global steel consumption, demand has slackened of late.
• The Jul-Sep quarter has been traditionally bad for India's steel industry.
• The latest WPI inflation figure declined to 12.40% from previous week’s figure of 12.63%. Yet, the government refused to read too much into it. FM Chidambaram said a week's fall in the inflation rate was not conclusive.

In addition to these points mentioned in the latest Sunday Report for the Paid Services. the steel prices in the international markets have peaked out and hence they are likely to fall in the domestic markets in the next couple of months. Thus, this is the best time to accumulate the stocks in the Real Estate, Construction and Auto Ancillary Space.