Market Mantra Prakash Industries Ltd was recommended to the Paid Group members and also in Facebook, today, at Rs.49.50, T-Rs.57, SL--Rs.46. The company came out with superb set of numbers for the Q4FY12 and also declared a dividend of 10%. The sales of the company were up by 27% at Rs.2107 Cr (~3.12 times its current market cap. Book Value: Rs.116.54), the EBIDTA came at Rs.368 Cr, PAT at Rs.268 Cr and EPS for the FY12 came at whooping Rs.20. Prakash Industries Ltd is a business house with interest in steel, mining and power. Over the last 6 years, the net sales have grown from Rs.800 Cr in 2006 to Rs.2107 Cr in 2012 and EBIDTA has gone up from Rs.153 Cr im 2006 to Rs.368 Cr in 20-12, registering a CAGR of Rs.17.5% and 15.5% respectively. Prakash Industriers Ltd is operating its integrated Steel and Power plant along with capitive mines in the sate of Chattisgarh with facilities for Sponge Iron, Steel Billets/Blooms, Ferro Alloys along with power generation. As a step towards fur...
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INR Depreciation against the USD The Indian rupee has seen a dramatic fall of over 20% in the last 8-9 months against US dollar. While several other emerging market currencies have also been under pressure during this period, INR has been one of the worst performers in its peer group. Such a sharp fall in a small span of time certainly creates challenges for the economy - domestic businesses that have foreign currency borrowing are hurt, foreign investors tend to stay away from the financial markets as INR fall aggravates their losses, domestic liquidity conditions worsen as RBI intervenes to check heightened volatility in INR and risk of imported inflation rises. The key factor that is putting pressure on the currency is the stress in India's balance of payments (BoP), both on current account as well as capital account. India's current account deficit (CAD) has been on a widening trend over the last 4-5 quarters, breaching 4% of GDP in December 2011, which is clearly a zone of...
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Lanco Infratech Ltd: Beautiful Chart Pattern The chart of Lanco Infratech Ltd forms a beautiful BULLISH PATTERN, which could take the script to around Rs.14.50-17 in the coming days. Infrastructure sector is expected to get a big boost with Rs.50 lakh crore investment announced by the Finance Minister Pranab Mukherjee in the Union Budget 2012-13. The ambit of Infrastructure tax-free bonds have been doubled in FY13 to Rs.60,000 crore, giving a tremendous impetus to all sectors which broadly come under infrastructure sector. Also, one should invest in Sintex Industries Ltd above Rs.55.
Wall Street Rallies: Stocks Gain 1% on Greece, China hopes NEW YORK (AP)--The stock market is desperately looking for good news. On Tuesday, oil prices fell, the euro sank to a 22-month low, and the yield on the U.S. government's 10-year Treasury note fell near a historic low after a report suggested that Spain will have more trouble repaying its debts. But stocks rose anyway. In fact, they had one of their best days in an otherwise dreary month. Investors focused on hopes that China is poised to rev up its economic growth machine, and that the upcoming elections in Greece will turn out to be favorable for the euro zone. "The overriding news isn't that great," said Robert Pavlik, chief market strategist at investment advisors Banyan Partners. "But Greece and China are taking the pressure off the market in the short term." Industrial stocks that depend heavily on the Chinese economy, like Caterpillar and Alcoa, rose sharply, bringing the Dow Jones indust...
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WINNING STROKES: THINK DIFFERENT Jai Balaji Industries Ltd hit another buyer freeze in the opening trade, after lot of positive developments took place in the company. I have placed a report on the company at: www.sumanspeaksplus.blogspot.com. Nutech India Ltd which was recommended last week, came down today, after some repeated circuits in the BSE. Today, most of the Paid Members, were asked to exit the counter, after getting good return on their investments--the stock hit the lower circuits. Therefore, join the Paid Service, to get the buy and sell triggers. Allied Digital Services Ltd which was recommended last week around Rs.20.50-21, hit the 20% upper circuits today. Congratulations to all those who bought the scrip on my suggestions. It seems bad days are over, for the company with Q4FY12. We can now look forward for better days ahead. Today, Paid Service members were asked to accumulate Prakash Industries Ltd at Rs.45. The stock is expected to cross Rs.52-53, in...
UNNCESSARY MEDIA SCARE: Greece will not probably exit Euro : Greece’s former Prime Minister Lucas Papademos said that while it is unlikely the nation will leave the euro, it’s still a risk, the Wall Street Journal reported yesterday after the close of European trading. But even........... MORE COMING........ Afternoon call to the Paid members: Buy Mini_Nifty at 4797, T--4808, SL----4780 (strict). Premium Members book some profits in the Mini_Nifty call at 4797, T--4808, SL--4780 (strict), Last traded price: 4821. Jai Balaji Industries Ltd hit the 3rd consecutive buyer freeze in the opening. And another stock which was recommended last week to the Paid Group Members, hit 6th consecutive buyer freeze. Meanwhile, Kohinoor Broadcasting Corporation Ltd is trading at the upper FREEZE and is waiting become ONLY BUYER....Now trading at Re.0.76 (Upper Circuits).
Prajay Engineers Ltd: Shamelss Promoters & Cooked up Results Prajay Engineers Sydicate Ltd is a listed entry in Bombay Stock Exchange, but it seems the promoters think it to be their own properties. It has been presenting (probably) cooked up results, quarter after quarters, in full view of the regulators, who are like statutes. Now while the directors are enjoying most of the benefits of the mango, the shareholders are given the seed of the mango, to suck. Very unfortunate!! These people have no shame at all, as they go on declaring projects after projects, with all profits probably sucked by the dishonest management. The company has an unending appetite of doing projects and making money from them, but then on the books the profits are few lakhs and even losses. It has huge land holdings, but then for shareholders it is all cipher--no use, as no one knows where the company's lands are....because it does not have a habit of disclosing the details to the stock exchanges, pr...
Market Mantra Kohinoor Broadcasting Corporation Ltd hits the 2nd consecutive buyer freeze in the opening trade. There are some recent positive developments in Kohinoor Broadcasting Corporation Ltd, and because of which the stock has hit the buyer freeze yesterday and today also it hit the upper circuits. As you all must be aware that the company has launched its free-to-air channel, KBC News in Q3FY12 and it is in the process of placing it in the DTH Platform, to increase the viewership and get a boost in the revenue generation. The company is also thinking of raising some money and also, tie up with some companies for both its media and solar energy ventures. The revenue stream is slowly picking up and we can hope for better prospects in the coming days. This means that Q1FY13, results will be a little better than Q4FY12 results. You can visit the website of the company for further details: http://www.kohinoorbroadcasting.com . However, we can base our investment prem...
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WINNING STROKES: THINK DIFFERENT Jai Balaji Industries Ltd hit the buyer freeze in the opening trade, after some positive developments in the company. There is a report on the company at: www.sumanspeaksplus.blogspot.com. Lanco Infratech Ltd Lanco Infratech Ltd moved to Rs.12.44, before closing at Rs.12.36. The stock is heading towards my target of Rs.16 in the coming days, as the government gives more stress on the infrastructure spending to tame the inflation. I have already said that the scrip has made a bottom of sorts on the charts. The company is coming up with results on 29th May, 2012. This time the scrip would probably break Rs.14, the stiff resistance. Today a buy call was initiated in Nifty as buy Mini_Nifty at 4880, T--4930, SL--4850. Yesterday, also it was clearly mentioned in the report to the Paid Service members that, there would be initial bounce in the indices. This is what has happened today. Prajay Engineers Syndicate Ltd nearly hit the buyer f...
Market Mantra Kohinoor Broadcasting Corporation Ltd hit the buyer freeze and is now trading just a tad below the upper circuits, with only few share to pick up. It has launched its free-to-air channel, KBC News in Q3FY12 which is now available on the cable TV. Now serious efforts are being made to put it in the DTH SPACE, to generate more viewership. The company is also in the process of launching, KBC Gold, it general entertainment programme. The market cap of the company is only Rs.7.82 Cr and book value of the shares of the company is Rs.9.27. The face value of the shares of the company is Rs.10 and the current market price of the share is only Re.0.68, which cannot be the price of the shares of the company and hence it should move up today or in the coming days. For more on the company one can visit its website:http://www.kohinoorbroadcasting.com . Jai Balaji Industries Ltd recommended yesterday, in the Sunday Report to the Paid Groups, hit the buyer freeze in the opening trad...
Steel demand seen rising 7.5 - 8% this fiscal: Analysts Mumbai, May 20: Despite an uncertain global economic environment and a slowdown in the domestic economy, steel demand is likely to clock a 7.5 - 8 per cent growth in the current financial year, analysts and officials say. “We expect steel demand to be around 7.5 per cent in line with the expected GDP growth,” JSW Steel director for commercial and marketing Mr Jayant Acharya told PTI. The domestic demand for the alloy has been growing at near double-digits in the recent past, prompting companies to expand capacity. It has also attracted foreign steel makers like ArcelorMittal and Posco to set up units here, the analysts said. “Demand will be in the range of 8-10 per cent in the current financial year on the back of an expected massive investment in the infrastructure sector,” Karvy Comtrade analyst Mr Sumit Mukherjee said. The country, which has nearly 80 mt per annum of installed capacity, will be among the emerging economies...
Falling rupee opening up new opportunities for IT companies Chandra Ranganathan & Sangeetha Kandavel, ET Bureau BANGALORE|CHENNAI: As Indian software services firms wait out the lull in demand, the depreciating rupee - the Indian currency has fallen by nearly 8% against the dollar since April-is opening up new opportunities while throwing up some challenges. Besides the translational gains fluffing up revenues and profits, Indian IT firms could also earn some brownie points with their clients by passing on some of the foreign exchange gains as savings to its US clients. IT firms could also plough back some of the extra income into sales and marketing efforts while riding out the lacklustre demand. The rupee boost could even help Infosys, which said it is holding off on pay hikes, to give out salary increments to its employees. In fact, its global sales and marketing head Basab Pradhan admitted as much during a Bank of America-Merrill Lynch investor conference last week when he s...
WINNING STROKES: THINK DIFFERENT Unitech Ltd moved to Rs.22 before closing at Rs.21.35. The stock on Wednesday jumped 7.77% triggered by the realty major issuing positive future outlook at the time of announcement of Q4FY12 results after trading hours on Tuesday, 15 May 2012. Unitech Ltd said that the demand for its various product offerings during the quarter ended March 2012 was healthy and the sales bookings during the quarter were higher than the previous quarter in volume terms at 1.79 million sq ft. In terms of value, sales bookings during the quarter stood at Rs.779 crore, Unitech Ltd said. The company's focus continues to be on ramping up the construction activity at its various project sites. Unitech Ltd said it has a healthy balance sheet and it has been continuously reducing its debt by utilizing cash flows from operations. The stock could be heading towards Rs.30, in the coming days. A stock which I recommended yesterday, to the Paid Service Members, hit the buyer fre...
Market Mantra The Nifty is consolidating around 4850 mark. US markets closed flattish on the back of strong housing data and news reports from Greece indicating a re-election to end political deadlock in the debt stricken nation. Chinese data too pointed at a recovery that propelled base metals higher. Asian were mixed today on the news of faster-than-estimated economic growth in Japan and on optimism that the Federal Reserve will do more to stimulate the U.S. economy. Back home it seems the government would do something to bring life to the depleted infrastructure sector, to plug in inflation bubble. It is to be noted that controlling inflation and fiscal consolidation should be done at the same time. Allied Digital Services Ltd today touched Rs.22.95, before cooling a bit. The stock was again recommended yesterday to the Paid Service Members. Today Lanco Infrastructure Ltd touched Rs.12.58, before cooling down a bit. The scrip could be moving towards Rs.16 in the coming ...
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Allied Digital Services Ltd: Should get benefited from the depreciation of the INR CMP: Rs.22.40 Yesterday, a buy call was given to the Paid Groups at around Rs.21-21.50, after the scrip fell of no visible reasons. It might be one of the biggest beneficiaries of the fall in the INR against the USD. For more please CLICK HERE .
Unitech Ltd: Brilliant Chart on the making CMP: Rs.21.25 Unitech Ltd is a profit making company even in challenging times. Now with the interest rates expected to come down further, in the coming days, Unitech Ltd is set to increase its income four fold. The target of Rs.30, still holds.The government should give more stress on the infrastructure and affordable housing sector, to tame down some of the effects of inflation
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Lanco Infratech Ltd: Ready to move up CMP: Rs.12.35 Lanco Infratech Ltd seems to be forming some pattern on the charts, which looks positive. The infrastructure sector is expected to do well going forward as the central bank is on a decreasing interest rate trajectory or it is going forward it will cut interest rates. Also, there were some series of good news on the company during the last fortnight. The company is coming up with results on 29th May, 2012. For more details CLICK HERE . The next target of Rs.16, still holds.
Why Indian Markets should give good returns (i) The Interest Rate has started to come down, which will help the Indian Infrastructure and Real Estate companies to take up projects in a large way. This is expected to help in cooling down inflation a bit. Moreover, inflation is positive for the companies, as they might be able to get better value for their produce (though some say, the real value of money goes down due to inflation--but that is only for the temporary period). (ii) The Crude Oil is falling and a fall in Rupee against the USD has started to get arrested due to large scale RBI Intervention. Both these are positive for the Indian Economy. (iii) The fall in crude price will help in balancing the oil pool account more effectively and at the same time, fall in the rupee would boost export earnings. (iv) Since, there is some indication of some direction coming out of Greece, we can say, we would slowly find a way out in Europe. Greece is a very small economy and we need not...
WINNING STROKES: THINK DIFFERENT Kohinoor Broadcasting Corporation Ltd Kohinoor Broadcasting Corporation Ltd hit the buyer freeze in the opening trade, before cooling just below the circuit limit. The stock today moved up with good volumes. I have already said, that the company has come up with the proposed news channel, KBC News, which is available in Cable Network. Another news channel KBC Gold is also in the offing. The company today came out with Q4FY12, results, which is along the expected lines. However, in the statement of Asset & Liabilities, as of 31st March, 2012, we find that the Trade Receivables (It is a subset of Accounts Receivable. Trade receivables are considered a current asset in the balance sheet of company, as they can be readily turned into cash) at Rs.48.33 Cr as against Rs.18.88 Cr in the same period previous year. Also, inventories shot up to Rs.41.77 Cr as of 31st March, 2012, as against Rs.4.48 Cr in the same period previous year. The other current ass...
Market Mantra Kohinoor Broadcasting Corporation Ltd hits buyer freeze in the opening trade. The stock should be moving towards Rs.2-3 in the coming days, as the company is slowly expected to get revenues from its television channels. It is now confirmed that Kohinoor Broadcasting Corporation Ltd is running KBC News on cable network. The much sought after advertising revenues have started to come, though albeit slowly. Moreover, since it is also a content company and hence it is saving cost by making some of its own television programmes. More, news to come in the counter, please accumulate the scrip at Re.0.79. Buy Reliance Communication Ltd at Rs.66-66.50, T--Rs.72, SL--Rs.62. TDSAT has directed the DOT to not encash bank guarantees of the company and of Reliance Telecom until the Jul 4 hearing of the case on penalty imposed on the companies for allegedly not having proper subscriber verification. This is positive for the Reliance Communications Ltd, as it is hopeful of winning case. ...
Subbarao overruled contrary advice on rate cut Consensus among members at April policy meet that rupee be allowed to depreciate BS Reporter / Mumbai May 15, 2012 [I had mentioned this long back, infact the day the RBI went ahead and cut the Interest rate. You can read my earlier posts to find, exactly what I had written at that time--that was from my close sources. It was the governors discretion which cut the repo rate, by 50 bps, which I appreciated. The governor had done the right thing.....and I would love to see more rate cuts in the coming days to lift the sagging Indian economy and especially steps to boost the infrastructure sector, which is in shambles. The price of vegetables did not rise, due to rate cut only, but more due to inherent shortages of supply. Will the people stop eating vegetables, if the price rises? This is ridiculous!! What the government needs to do is to relax import restrictions on the items where, inflation is persisting. In this way, fall in the rupee ...