http://www.sumanspeaks.blogspot.com/Let's(sic) check their recommendation? (and you know is the re-sellers of their service--the guy from Assam)
This is a 400 Cr (sic) market cap company promoted by Amar Singh (Yes, you got it right, he is the same Amar Singh of Mulayam Singh Party SP, backing the government), Even "Amitab Bachchan" is one of the director (sic) of the company. Just because it is backed by a politician one should not buy the company. I see this as a venture to make all your (whose?) black money from promoters earned by various unknown sources to white. Neither Amar Singh nor Bachchan knows (sic) anything about Energy/Power, and people are betting big on their ventures. Strongly avoid this company.
My take:
1. At the CMP of Rs.40.50 it is only a Rs.111.38 Cr market cap company and not Rs.400 Cr market cap company, which the web-site: www.hbjcapital.com is still flaunting on their web-site.
2. Now let us look at the shareholding pattern of some of the prime promoters of the company and also look at Mr.Amar Singh's share:(i) Sarvottam Caps Ltd--40.98%
(ii) Startrack Vinimay Pvt.Ltd--7.79%
(iii) Amar Singh---5.30%
(iv) Pankaja Kumari Singh (wife)--1.71%
At present Mr.Amitabh Bachchan does not hold any shares of the company DIRECTLY on official records, except may be through Sarvottam Caps Ltd or some such companies.
Now let us take who are the prime shareholders among the Non-promoters:
(i) Citrus Securities Pvt Ltd---5.66%
(ii) Exude Vincom Ltd---7.64%
(iii) Rottex Merchantile Ltd--13.73%
(iv) IFCI Ltd--1.09% (So this reputed organisation is also a fool, according to http://www.hbjcapital.com/).
Now it has been alleged by one Mr.Shiv Kant Tripathi that, M/s Sarvottam Caps is a shareholder in Ms Pankaja Art and Credit Ltd and vice-versa. According to his research, "The major shares of these two firms are held by Singh, his wife Pankaja and actor Amitabh Bachchan".
So we can safely conclude that Mr.Amar Singh directly or indirectly is a major shareholder of this company, while Mr.Amitabh Bachchan might have some holding through other holding companies.
(ii) The http://www.hbjcapital.com/ then gives out childish comments when it writes, "I see this as a venture to make all your (whose?) black money from promoters earned by various unknown sources to white".
If they have such information then why don't they send it to the press for official publication??!! Do www.hbjcapital.com have guts to fight against a leader of the stature of Thakur Amar Singh??!! I believe not!!
So this is the basic reason why people buy the shares of companies where politicians are involved. Because influential politicians of the stature of Mr.Singh enjoy enviable political clouts, which normal businessman does not have--hence people are ready to premium to such companies.
Recently, Kalanithi Maran bought some stakes in Spicejet Ltd at Rs.57.76 per shares and you now know what is its price---Rs.72.65, after touching Rs.79 in this month---this is called "Political Premium". So within one month of purchase the share price jumps by more than 25%!!
Same is the case with BAG Films Ltd where another politician holds a major stake. BAG Films Ltd even after giving an EPS of Re.0.04 in Q1FY11 and FY10, EPS of Re.0.05, is trading at Rs.65.2 (If we consider Rs.10 as face value).
Another company is Madhucon Projects Ltd whose chairman Nageshwar Rao, was the TDP candidate who won from Khamman, Andhra Pradesh, against Renuka Choudhury. The shares of the company are having an FY10, EPS of only Rs.5.86 and Q1FY11 EPS of only Rs.1.82, but the share is trading at Rs.150.80 (Rs.1508 considering Rs.10 face value), after having touched Rs.197.55.
Therefore we should buy into companies where politicians are holding major stakes, as they have the power to bring drastic changes in the company's fundamentals..
Now coming back to Energy Development Company Ltd we find that at the CMP of Rs.40.50 it is having dividend yield of 2.47%, which is not at all bad considering the current interest environment. The book value of the shares of the company is Rs.38.43, which is near its CMP.
Moreover, if we consider the FY10, EPS of the company which is Rs.4.22 on consolidated basis, then the P/E at present comes as 9.6 which is much below the industry average of 23.81.
www.hbjcapital.com then puts serious allegations which amounts to defamy and I do not know if Mr.Singh has seen such wild allegations or not.
HBJ Capital writes, "I see this as a venture to make all your (whose?) black money from promoters earned by various unknown sources to white".
But then the company gives the following on the notes section:
1. The generation of electricity (through the company´s Hydel and Wind Power Projects) is seasonal / variable
in nature. Information relating to 12 months period ended as at June 30, 2010 (last date of the quarter) is given herein below:
Total generation and sale during 12 Months period ended on June 30, 2010.
Million Units* - 56.28
Sales value Rs (in lacs) - 1781.90
* includes 22.83 million units (Previous year 8.32 million units) from 7MW Ullankal Hydro Electric Project
2. The Power Purchase Agreements / tariff in respect of various plants are under consideration by the respective Regulatory Commissions. Necessary adjustments, if any, arising out of variation in tariff / any other matter shall be carried out in subsequent period.
a) In respect of 7 MW Ullankal Hydro Project the draft Power Purchase Agreement (PPA) was approved by Kerala State Electricity Regulatory Commission (KSERC) Rs. 2.44 per Unit, with metering point at receiving end of Kerala State Electricity Board (KSEB). KERC has allowed our petition for change of metering point from receiving end of KSEB to sending end at Plant. KSEB filed a review petition against order of KERC for the change of point of metering from to its end which has been decided in the favour of the company. Supplementary bill amounting to Rs. 2.17 Lacs for the quarter (Rs. 7.97 Lacs for the previous year) on KSEB for differential units on account of loss incurred due to present metering point has been raised and the same is included in the sales.
b) Karnataka Electricity Regulatory Commission (KERC) vide its order dated December 11, 2009 has inter alia fixed tariff or those plants, which have completed ten years of operation at the last drawn tariff by those units. Accordingly the tariff for the generation from the Harangi Hydro Power Plant for the current period has been recognized at Rs.3.7184 per units.
c) An amount of Rs. 28.35 Lacs was not recognized as revenue for the financial year ended March 31, 2010, due to uncertainty of receiving payment from Utility CHESCOM, Mysore at the time of sale of electricity from Harangi Hydro Electric Project on account of purported excess generation. The Company has filed a petition before Karnataka Electricity Regulatory Commission (KERC) and awaiting the order there against.
3. The Company has filed a Scheme of Arrangement before the Hon´ble High Courts at Karnataka and Kolkata for merger of its’ subsidiary (Dhanashree Projects Ltd) with itself and demerger of the Ullankal Hydro Power Project from the Company and its merger with its´ wholly owned subsidiary (EDCL Power Projects Ltd) w.e.f. April 01, 2009. Pending the approval of the scheme from respective Courts, the above results are being published without giving effect to the said arrangement.
4. Deferred tax accounting as required by Accounting Standard — 22 "Accounting for Taxes on Income", will be carried out at the end of current financial year in view of loss in current quarter income tax has not been provided.
5. The above financial results do not include the Consolidated financial performance of the Company. The Consolidated financial results will be published with annual results.
SO THE MONEY IS COMING ALSO FROM OPERATIONS.....I DO NOT WANT TO COMMENT BLINDLY ON BLACK MONEY PART, WHEN I DO NOT HAVE ADEQUATE INFORMATION ON IT.
Then HBJ Capital makes another outrageously false statement against Mr.Amar Singh as if to score a political vendetta against the SP leader, when it says, "Mr.Amar Singh" does not have any knowledge about power.
Readers must be aware that Mr.Singh was the Chairman of Uttar Pradesh Development Council, UPDC (2003-07) and under whom Power policy was drafted. The power policy drafted by UPDC ensured that abysmal power situation is taken care of. It is said because of him many old and dead power projects were rejuvenated and the country's biggest gas based power plant was initiated at Dadri.
Singh’s friends in the business world can be divided into two groups. The first group comprises big business barons like Ambani, Godrej and Subrata Roy of the Sahara group, all considered extremely close to him.
The second group comprises industrialists like Kushagra Bajaj of Bajaj Hindustan, Ramesh Chandra of Unitech Ltd, Vinay Maloo of Himachal Futuristic Communication Ltd (HFCL), Ashok Chaturvedi of Uflex Industries (until recently known as Flex Industries), US Bhartia of India Glycols, Bhushan Uppal of the Uppal group and Ponty Chadha of the Chadha group. Except Vinay Maloo, the rest in the second group have substantial business interests in Uttar Pradesh and flourished during the Mulayam Singh regime.
And hence it would be nonsensical to say that Mr.Amar Singh would not know anything about Power Projects. Do all these business magnets flock towards Mr.Singh without any reasons...??
Mr.Amar Singh once said, "GVK Reddy would not have got the Srinagar power plant if I had not been around,” referring to the 330-Mw Alakhnanda hydel project granted in 2006 to the GVK group along with two others — Rosa and Anpara. Between them, they were supposed to have provided UP with 24x7 power.
When someone said, "But Anil Ambani did get the Rosa power project — 600 Mw, Mr.Singh said, he gave it to “Anil only after Kumar Birla held the licence for years and did not produce even one unit of power.”
“I would have liked to give even the 1000 Mw Anpara C project to Anil. But the Lanco group bid the lowest and Anil lost. I would have been indulging in cronyism if I’d given all three to Anil. Lanco Rajagopal is a Congress MP. His party disliked me. But the government decided and he got it,” Singh said.
AND THIS WEBSITE WROTE SUCH A NONSENSE...And now decide for yourself who is right and who is wrong....!!
(ii) Exude Vincom Ltd---7.64%
(iii) Rottex Merchantile Ltd--13.73%
(iv) IFCI Ltd--1.09% (So this reputed organisation is also a fool, according to http://www.hbjcapital.com/).
Now it has been alleged by one Mr.Shiv Kant Tripathi that, M/s Sarvottam Caps is a shareholder in Ms Pankaja Art and Credit Ltd and vice-versa. According to his research, "The major shares of these two firms are held by Singh, his wife Pankaja and actor Amitabh Bachchan".
So we can safely conclude that Mr.Amar Singh directly or indirectly is a major shareholder of this company, while Mr.Amitabh Bachchan might have some holding through other holding companies.
(ii) The http://www.hbjcapital.com/ then gives out childish comments when it writes, "I see this as a venture to make all your (whose?) black money from promoters earned by various unknown sources to white".
If they have such information then why don't they send it to the press for official publication??!! Do www.hbjcapital.com have guts to fight against a leader of the stature of Thakur Amar Singh??!! I believe not!!
So this is the basic reason why people buy the shares of companies where politicians are involved. Because influential politicians of the stature of Mr.Singh enjoy enviable political clouts, which normal businessman does not have--hence people are ready to premium to such companies.
Recently, Kalanithi Maran bought some stakes in Spicejet Ltd at Rs.57.76 per shares and you now know what is its price---Rs.72.65, after touching Rs.79 in this month---this is called "Political Premium". So within one month of purchase the share price jumps by more than 25%!!
Same is the case with BAG Films Ltd where another politician holds a major stake. BAG Films Ltd even after giving an EPS of Re.0.04 in Q1FY11 and FY10, EPS of Re.0.05, is trading at Rs.65.2 (If we consider Rs.10 as face value).
Another company is Madhucon Projects Ltd whose chairman Nageshwar Rao, was the TDP candidate who won from Khamman, Andhra Pradesh, against Renuka Choudhury. The shares of the company are having an FY10, EPS of only Rs.5.86 and Q1FY11 EPS of only Rs.1.82, but the share is trading at Rs.150.80 (Rs.1508 considering Rs.10 face value), after having touched Rs.197.55.
Therefore we should buy into companies where politicians are holding major stakes, as they have the power to bring drastic changes in the company's fundamentals..
Now coming back to Energy Development Company Ltd we find that at the CMP of Rs.40.50 it is having dividend yield of 2.47%, which is not at all bad considering the current interest environment. The book value of the shares of the company is Rs.38.43, which is near its CMP.
Moreover, if we consider the FY10, EPS of the company which is Rs.4.22 on consolidated basis, then the P/E at present comes as 9.6 which is much below the industry average of 23.81.
www.hbjcapital.com then puts serious allegations which amounts to defamy and I do not know if Mr.Singh has seen such wild allegations or not.
HBJ Capital writes, "I see this as a venture to make all your (whose?) black money from promoters earned by various unknown sources to white".
But then the company gives the following on the notes section:
1. The generation of electricity (through the company´s Hydel and Wind Power Projects) is seasonal / variable
in nature. Information relating to 12 months period ended as at June 30, 2010 (last date of the quarter) is given herein below:
Total generation and sale during 12 Months period ended on June 30, 2010.
Million Units* - 56.28
Sales value Rs (in lacs) - 1781.90
* includes 22.83 million units (Previous year 8.32 million units) from 7MW Ullankal Hydro Electric Project
2. The Power Purchase Agreements / tariff in respect of various plants are under consideration by the respective Regulatory Commissions. Necessary adjustments, if any, arising out of variation in tariff / any other matter shall be carried out in subsequent period.
a) In respect of 7 MW Ullankal Hydro Project the draft Power Purchase Agreement (PPA) was approved by Kerala State Electricity Regulatory Commission (KSERC) Rs. 2.44 per Unit, with metering point at receiving end of Kerala State Electricity Board (KSEB). KERC has allowed our petition for change of metering point from receiving end of KSEB to sending end at Plant. KSEB filed a review petition against order of KERC for the change of point of metering from to its end which has been decided in the favour of the company. Supplementary bill amounting to Rs. 2.17 Lacs for the quarter (Rs. 7.97 Lacs for the previous year) on KSEB for differential units on account of loss incurred due to present metering point has been raised and the same is included in the sales.
b) Karnataka Electricity Regulatory Commission (KERC) vide its order dated December 11, 2009 has inter alia fixed tariff or those plants, which have completed ten years of operation at the last drawn tariff by those units. Accordingly the tariff for the generation from the Harangi Hydro Power Plant for the current period has been recognized at Rs.3.7184 per units.
c) An amount of Rs. 28.35 Lacs was not recognized as revenue for the financial year ended March 31, 2010, due to uncertainty of receiving payment from Utility CHESCOM, Mysore at the time of sale of electricity from Harangi Hydro Electric Project on account of purported excess generation. The Company has filed a petition before Karnataka Electricity Regulatory Commission (KERC) and awaiting the order there against.
3. The Company has filed a Scheme of Arrangement before the Hon´ble High Courts at Karnataka and Kolkata for merger of its’ subsidiary (Dhanashree Projects Ltd) with itself and demerger of the Ullankal Hydro Power Project from the Company and its merger with its´ wholly owned subsidiary (EDCL Power Projects Ltd) w.e.f. April 01, 2009. Pending the approval of the scheme from respective Courts, the above results are being published without giving effect to the said arrangement.
4. Deferred tax accounting as required by Accounting Standard — 22 "Accounting for Taxes on Income", will be carried out at the end of current financial year in view of loss in current quarter income tax has not been provided.
5. The above financial results do not include the Consolidated financial performance of the Company. The Consolidated financial results will be published with annual results.
SO THE MONEY IS COMING ALSO FROM OPERATIONS.....I DO NOT WANT TO COMMENT BLINDLY ON BLACK MONEY PART, WHEN I DO NOT HAVE ADEQUATE INFORMATION ON IT.
Then HBJ Capital makes another outrageously false statement against Mr.Amar Singh as if to score a political vendetta against the SP leader, when it says, "Mr.Amar Singh" does not have any knowledge about power.
Readers must be aware that Mr.Singh was the Chairman of Uttar Pradesh Development Council, UPDC (2003-07) and under whom Power policy was drafted. The power policy drafted by UPDC ensured that abysmal power situation is taken care of. It is said because of him many old and dead power projects were rejuvenated and the country's biggest gas based power plant was initiated at Dadri.
Singh’s friends in the business world can be divided into two groups. The first group comprises big business barons like Ambani, Godrej and Subrata Roy of the Sahara group, all considered extremely close to him.
The second group comprises industrialists like Kushagra Bajaj of Bajaj Hindustan, Ramesh Chandra of Unitech Ltd, Vinay Maloo of Himachal Futuristic Communication Ltd (HFCL), Ashok Chaturvedi of Uflex Industries (until recently known as Flex Industries), US Bhartia of India Glycols, Bhushan Uppal of the Uppal group and Ponty Chadha of the Chadha group. Except Vinay Maloo, the rest in the second group have substantial business interests in Uttar Pradesh and flourished during the Mulayam Singh regime.
And hence it would be nonsensical to say that Mr.Amar Singh would not know anything about Power Projects. Do all these business magnets flock towards Mr.Singh without any reasons...??
Mr.Amar Singh once said, "GVK Reddy would not have got the Srinagar power plant if I had not been around,” referring to the 330-Mw Alakhnanda hydel project granted in 2006 to the GVK group along with two others — Rosa and Anpara. Between them, they were supposed to have provided UP with 24x7 power.
When someone said, "But Anil Ambani did get the Rosa power project — 600 Mw, Mr.Singh said, he gave it to “Anil only after Kumar Birla held the licence for years and did not produce even one unit of power.”
“I would have liked to give even the 1000 Mw Anpara C project to Anil. But the Lanco group bid the lowest and Anil lost. I would have been indulging in cronyism if I’d given all three to Anil. Lanco Rajagopal is a Congress MP. His party disliked me. But the government decided and he got it,” Singh said.
AND THIS WEBSITE WROTE SUCH A NONSENSE...And now decide for yourself who is right and who is wrong....!!
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