Energy Development Company Ltd to Shine in the Indian Bourses:

According to met-department the monsoon was above normal in the rice, corn and cane growing areas of south India, it was sluggish in the rest of the country, including the soybean-growing areas of central India.

A healthy rainfall despite the slow progress could help PM Manmohan Singh tame high double-digit food inflation, which hit an annual 16.9 per cent in the week ended June 12.

It is to be understood that: June-September rainfall, which irrigates 60 per cent of the country’s farms and drives rural incomes, is vital for the trillion-dollar economy.

The annual monsoon rain should revive in two days after a 10-day lull. The weather office last week said rain was expected to be better than previously forecast, raising hopes of a good harvest and of reining in double-digit food inflation.

In this context: Buy Energy Development Company Ltd (BSE Code: 532219) above Rs.44 for a target of Rs.77-79, in the next couple of months time frame. The stock has till date under-performed the market, but at this price the scrip looks attractively priced and can easily give, 40--50% return in a couple of months time frame, unless the bears create havoc in Dalal Street.

The Energy Development Company Ltd earlier informed BSE that the meeting of Creditors and Shareholders of the Company held on June 11, 2010 have approved the scheme of arrangement between Energy Development Company Ltd. and EDCL Power Projects Ltd and Dhanashree Projects Ltd and their respective Shareholders. THIS IS MUSIC TO THE EARS OF THE SHAREHOLDERS/INVESTORS.....!!

Moreover, in January and April, 2010, the company first won a sub-contract of Rs 567 mn (Rs.56.7 Cr) and the bagged another one worth Rs 310 mn (Rs.31 Cr), respectively.

The Group's principal activity is to generate hydroelectricity in India. It operates through two segments: Contract Division and Sale of Electricity. The Group's products include hydel power, wind power, electrical materials and consultancy services. The Group's plants are located at Karnataka and Kerala---there good rains is necessary for its bottom line to spike up.

The scrip was recommended yesterday to the Paid Groups for accumulation, around the current CMP of Rs.44.80. It has a market cap of only Rs.123.2 Cr and with a dividend yield of 2.23%, the scrip does not look bad at all for short to medium term perspective.......The chartical parameters are more or less in the buy mode.....