SumanSpeaks: The Information Super Highway

Market Mantra Southern Online Bio Tech Ltd  hits the buyer freeze in the opening trade. Those who bought with me will be smiling their way to the bank. Suzlon Energy Ltd today touched Rs.19.55, before cooling down a bit. The company's lenders will meet on Dec 31, 2012 to finalise its debt recast package. The investors should close their eyes and keep accumulating the scrip on all declines. I think most of  you  have bought today, when the scrip fell down to around Rs.18.50. ARSS Infrastructure Ltd which was recommended only some days back hit the buyer freeze at the mid--afternoon trade, due to some positive development. RDB Realty and Infrastructure Ltd is doing a lot of projects and the scrip has more or less formed a base around Rs.26. One should accumulate the scrip and keep holding for a short term price target of Rs.44. There is very little downside in the scrip. As expected the market witnessed a smart rally on last Friday. Since the morning till ...

Why RDB Realty & Infrastructure Ltd L ook s A ttractive? RDB Realty and Infrastructure Ltd (RDBRIL), along with its subsidiaries and associates is developing Projects with an area of about  58 lakh sq.ft. RDB Reaty alone accounts for around 22 lakh sq. ft of which around 15 lakh sq.ft is accounted by government projects. The company is focusing more on the low--middle income segment, and has ventured into Tier--II and Tier--III cities. The company believes in timely construction and execution of projects rather than building huge land banks. But still the company has a land bank of around 125+ acres as of 31st March, 2012. Now even if we consider Rs.2 Cr per acre then the value of the land alone comes around Rs.250 Cr, against a market cap of only Rs. 28.62 Cr and book value of Rs.64.33. The dividend  yield at 3.77% is also attractive on the CMP of Rs.26.50. The Company is one of the few approved companies of DG-Map Project, where the Company’s assessed capacit...

Retail Investors : Do not invest in Indian Stock Market..........!! Many experts and advisers on television and other media advise retail investors to invest in equities, but to no avail. There is absolutely no interest in equities at the retail level and mutual funds, too, are seeing record redemptions. As it happens, retail investors are helping markets more by staying out than by investing in equities, so, from a purely selfish point of view, we (current equity market participants) do not mind if you stay away from equities. Put your money in low-interest bearing savings accounts and this will help bank raise cheap funds. Then, while you earn taxable 9% per year in fixed deposits and 4% in savings accounts, we will continue to buy HDFC Bank, IndusInd Bank, Yes Bank and the like, which are up 3.5 times, 11 times, and 5.9 times, respectively since December 2008. Also, remember to pay all your EMI installments on time so that retail loans made by the private banks do not get into...

Join Either my Recommended House or Paid Service Do  you know where is RDB Indus tries Ltd is l ooking so  a ttrac tiv e ? Do, you know  l atest on ARSS Infrastructure L td ? Do, you know what is   the real st ory behind Kohinoor B roadca s ting Corpora tion Lt d ? Do, you know where will be the Nifty in   the next week ? Join the Paid Service or Brokerage  House and be ahead of others. When you play in lakhs in the market why do you bother, so much to spend few thousand per year,  for Paid Services? My Paid Service Charges are one of the most reasonable ones. If  you do not like to d o that, then j oin my recommended Brokerage  House , like m any are doing and get everything Free.   This is to inform you that those who have applied for new demat/trad ing account in my recommended brokerage house, should wait for a little while to get your forms processed. Those who are yet to receive form , should send me a mail, ...

Market Mantra Southern Online Bio Tech Ltd hits another buyer freeze in the opening trade as expected. The diesel prices are expected to  be increased, according to the media reports.   Suzlon Energy Ltd moved up like a rocket, after it was recommended in this blog.  I can  only see positives in the counter and I still maintain my medium term target of Rs.31-32 .  ARSS Infrastructure Ltd, which was recommended as a buy yesterday, touched Rs.47.70, today and is expected to move up in the coming days, as the company hopes to turn black  by Q4FY13. The company has got interest subvention and this is already reflected in Q2FY13 results, when the interest cost came down drastically, from Rs.37.10 Cr in Q2FY12 to mere Rs.19.47 Cr in Q2FY13.  This is expected to continue in the coming quarters , as the Corporate Deb t Restructuring picks up steam . The company has good order book positions.  We need to accumulate all the I nfrastructure Coun...

Suzlon Energy Ltd : Pure Buy Please Click on the Chart to Expand Apart from Chatical Bullishness, the recent move  by the government  to boost exports will be positive for companies like Suzlon Energy Ltd, which are more or less in the engineering sector. This is the second round of incentives in less than six months. The sops include extension of 2 per cent interest subsidy for another year till March 2014, and additional incentives on incremental exports. The engineering sector, which has been a laggard in exports since the global downturn, has been extended sops. “To retain this competitive edge and to boost engineering exports, certain specific sub-sectors of the engineering sector would be extended the benefit of 2 per cent interest subvention. They will receive this benefit from the last quarter of the current financial year, that is, from January 1, 2013 till March 31, 2014,” Sharma added.  Wednesday’s incentives came in the backdrop of the Annual Supp...

Market Mantra Southern Online Bio Tech Ltd as expected hit the buyer freeze in  the opening trade. I  have already mentioned why it should give wonderful returns going forward . RDB Realty and Infrastructure Ltd (BSE Code: 533285)  today touched Rs.26.90. The company's December and March quarters are generally  money spinners. So, just invest and  wait for the Q3FY13 results to come. I am sure by that  time it would cross Rs.35--37.  For more on the company you can CLICK  HERE . I  think correction is over in both Suzlon Energy Ltd (Rs.17.3 5) and IRB Infrastructure Ltd (Rs.127.30). Both the company has some superb stories to tell: Suzlon Energy Ltd will save few  hundred crores in terms of interest rate subvention by 300-400 basis points and at the same time would get 2 year moratorium  on the interest payment. IRB  Infrastructure Ltd has a strong hand in the form of two powerful politicians from two op...

Steel firms look to govt infra push, rate cut to hike demand Buy Steel Counters since RBI is expected to Cut  Interest  Rate in the next month The domestic steel industry, now reeling under a severe sluggish demand, is betting big on the government’s infrastructure push and the expected easing of monetary policy by RBI as it goes past 2012, considered by manufacturers as “pretty tough”. Despite good sales, bottom-line for most of the steel firms got impacted in January-March quarter on costlier raw material and rupee depreciation. The weak rupee deepened woes for almost all of them during April-June quarter. The US dollar-rupee exchange rate, which was 44.70 in June 2011, touched record low of 57.32 on June-end this year. Adding insult to injury was the slackening of demand that started creeping in since July. Things became more difficult due to the monsoon coupled with an overall economic slowdown during the last 3-4 months, making 2012 “pretty tough” for the...

Media and Entertainment Funds do well in the last 3 months  MUMBAI: Sector funds dedicated to media and entertainment sectors have done extremely well in three months ended 24 thDecember 2012. While the broad market represented by S&P CNX Nifty delivered 2.75% returns, Reliance Media & Entertainment Fund and Sundaram Entertainment Opportunities Fund gave 22.94% and 21.82% respectively in three months. Mandatory digitization announcement by the government in metro cities by October 31 has pushed up the investor sentiment in the entertainment and media stocks. Investors expect rest of the country to go for mandatory digitization by March 2014. This should bring in transparency in the number of subscribers and the revenues generated through distribution of content. Content providers - media and entertainment companies - too are expected to benefit in medium term as subscriber revenues go up, say analysts. "Improving sentiment in the Indian economy should boost the ...

Real estate sector likely to revive in 2013: Experts MUMBAI: After a long lull, the year 2013 is expected to bring back hopes of growth to the real estate sector, mainly due to the government's positive approach towards reforms and moderation of interest rates, experts say. Land Acquisition and Real Estate Regulation Bills are expected to be passed during the year, while there is a likelihood of Reserve Bank bringing down the interest rates. "The passage of FDI in multi-brand retail by the government shows its seriousness on introducing reforms. RBI can be expected to lower interest rates in the coming months which will benefit developers as well as consumers. This will boost the sentiments," Knight Frank India chairman Pranab Datta said. Residential prices, which have been increasing over the past few years are likely to witness subdued growth in most markets in a short to medium term till the pressures of unsold inventory are eased out, CBRE chairman ...

Market Mantra Vijay Shanthi Builders Ltd hits the 2nd consecutive buyer freeze.  Now buy RDB Realty and Infrastructure Ltd (BSE Code: 533285) at Rs.24.95, SL--Rs.21, T--Rs.44.  The FY12, EPS of the company was Rs. 8.38. The OPM was 24.8 6% and NPM was 10.16%.  Now if  you look at the results of FY12, then  you would discover  that, during the two quarters only, RDB Realty and Infrastructure Ltd gains maximum profits and those two quarters are December (which is running now or we can say that we are almost at the end of it) and the March Quarter (The EPS for Q4FY12 was Rs.6.94). These two quarters gave such high EPS of the Company for FY12.  Therefore, doesn't it look attractive at the CMP of Rs.25, when we know for certain that, RDB Realty and Infrastructure Ltd, will move up within a very short time? Moreover, when we have a certainity of cut in the interest rate in the next policy meet, we need to buy the stocks in the Re...

Join Either my Recommended House or Paid Service Do  you know where is Reliance Power Ltd h eaded? Do, you know  l atest on ARSS Infrastructure L td ? Do,  you know where will be the Nifty in this expiry? Join the Paid Service or Brokerage  House and be ahead of others. When you play in lakhs in the market why do you bother, so much to spend few thousand per year,  for Paid Services? My Paid Service Charges are one of the most reasonable ones. If  you do not like to d o that, then j oin my recommended Brokerage  House , like m any are doing and get everything Free.  This is to inform you that those who have applied for new demat/trad ing account in my recommended brokerage house, should wait for a little while to get your forms processed. Those who are yet to receive form , should send me a mail, so that I can take up the issue wit h the courier agency. Those whose forms have some pendency in the documents or in the forms ,...

Message: one factory, one union--Multiple Trinamul unions create confusion and squabbles in Durgapur-Asansol belt ~~Abhijeet Chatterjee Durgapur: The INTTUC leadership in Durgapur has said it will end the spawning of multiple party-affiliated unions in the same factory to prevent squabbles. The move comes two days after a Jai Balaji Industries employee was allegedly assaulted by INTTUC workers. The INTTUC leadership in Durgapur said it would inform workers which is the “recognised” union in each factory. District INTTUC president Prabhat Chatterjee said: “There will be one recognised union in a factory. We will not tolerate factions. I know that in many plants in the district, more than one union exists.” Industrialists in the region welcomed the move. The Federation of South Bengal Chamber of Commerce and Industries general secretary, R.P. Khaitan, said: “We need a peaceful and healthy ambience in factories for better productivity. Incidents such as the one at Jai Balaji a...

Trinamool Congress leader booked for ‘attack’ on Durgapur manager Please Click on  the Photo to Expand Kolkata A senior manager of a steel firm was assaulted at his residence in Durgapur on Sunday night allegedly by a Trinamool Congress trade union leader and his supporters. Arun Kumar Thatoy, general manager (electrical division) of Jai Balaji Industries, was assaulted at his Bidhan Nagar home by over a dozen men allegedly led by INTTUC leader Asim Pramanik. Thatoy was reportedly dragged out and hit on the head and chest and had to be hospitalised. Pramanik surrendered in court today and was released on bail. The Jai Balaji Industries unit at Banskopa in Panagarh functioned normally today. “There has been no problem and we were fully functional today, thanks to the cooperation of all the government agencies. There was absolutely no problem today,” said K S Nair, senior manager (personnel administration). Asked if there was any administrative action on the cards for Pramani...

WINNING STROKES: THINK DIFFERENT Southern Online Bio Tech Ltd hit another buyer freeze today, at Rs.2.90, in the opening trade. Today it went up with good volumes, which means lot of persons (investors/traders) are entering the counter. Now, it is pertinent to mention here that, the price of  bio-diesel is kept artificially low in India--price of bio-diesel is almost half of the subsidised fossil, diesel. Hence, there are ample chance that this price is expected to increase, in the coming days; especially after Mr.Kishor Goswami and Hari Kanta Choudhury of the Department of Humanities and Social Sciences, Indian Institute of Technology, Kharagpur, appealed to the Government to think seriously in favour of raising the market price of jatropha for sustainability of the industry in the North East region. The price of Jatropha cannot increase  unless the price of Bio--diesel increases and hence, the government might now seriously think of increasing the price of Bio--die...

Government Takes Several Steps to Increase Power Generation Capacity in Renewable Energy The Minister of New and Renewable Energy, Dr. Farooq Abdullah informed Lok Sabha that total installed capacity of power generation in the country is 2,10,544 MW. This includes 26,267 MW from various renewable energy sources. The contribution of renewable energy is about 12.45% in the total installed capacity. A target of 30 GW grid interactive renewable power capacity addition, comprising 15 GW from wind, 10 GW from solar, 2 GW from small hydro and 3 GW from biomass has been proposed for the Twelfth Five Year plan period. The Government has taken several steps to increase power generation capacity of renewable energy sources. These include: • Fiscal and financial incentives, such as, capital/ interest subsidy, accelerated depreciation, concessional excise and customs duties; • Preferential tariff for grid interactive renewable power in most potential States. • A minimum percentage for pur...

Prakash  Industries Ltd : Banking on Steely Recovery Prakash Industries (PIL) reported a 37.8% yoy top-line growth i n Q2FY13 ; however, its operating margins declined mainly due to higher input costs. Higher realizations drive top-line growth : PIL’s net sales grew by 37.8% yoy to Rs.631 C r mainly on account of higher realization across product categories. Gross realization of structural steel/TMT and wire rods increased by 12.4% and 7.8% yoy to Rs.38,557/tonne and Rs.40,409/tonne, respectively. High costs dent ed PIL’s profitability : Raw material costs increased by 44.9% yoy to Rs.444 C r due to increase in prices of inputs. EBITDA margin slipped by 367 bps yoy to 13.1%; however, EBITDA increased by 7.7% yoy to Rs.83 C r. Interest expenses stood at Rs.13 C r compared to Rs.3 C r in Q2FY12 and depreciation expenses also increased by 44.7% yoy to Rs.25 .72 C r. Hence, net profit decreased by 18.6% yoy to Rs.44.57   C r in Q 2 FY13 as against Rs.54.81 in the same pe...

China recovery steels metal stocks Metal companies seem to have bucked the bearish trend in the stock market. The metal index gained 132 points at 11,241 on Thursday, while the benchmark Sensex closed lower by 22 points at 19,454. This was largely due to an increase in global metal prices on rising demand from China, signalling an economic recovery. Hindalco gained three per cent at Rs 133 while Jindal Steel and JSW Steel jumped two per cent each to Rs 471 and Rs 824. Tata Steel was up two per cent at Rs 431. Vedanta Group companies Sesa Goa and Sterlite Industries also ended in the green. Deven Choksey, Managing Director, KR Choksey Shares and Securities, said metal stocks are getting re-rated after the recent rise in metal prices. Being the growth engine of the world, a recovery in the Chinese economy bodes well for the coming year, he said. Moreover, permits given in the US for home-building touched their highest level in the last four-and-a-half years in November. Though the...

Suzlon Energy Ltd :  Positive Build-up on Charts Now when the large caps are expected to move in Sideways, the investments in small and mid cap counters gain prominence. Suzlon  Energy Ltd (CMP: Rs.18.65) is an established name in the renewable energy sector, which falls  under th e category of small cap . The company's worrisome past is now a history, as the 5 th largest wind  power company is going for a Corporate Debt Restructuring process.  R ecently,  Suzlon Group subsidiary, REpower Systems SE, concluded a contract with wpd europe GmbH, a subsidiary of project developer wpd AG, for the delivery of a total of 51 wind turbines. As part of this, a service and maintenance agreement (ISP) for a total of 15 years for the new projects was also concluded. T he REpower MM92 turbines, each with a rated power of 2.05 megawatts (MW), are intended for a total of six projects, Whittington, Springwood, White Pines, Napier, Sumac Ridge and Fairview, to be c...

Cotton yarn prices spurt on seasonal demand Sharleen D'Souza / Mumbai Dec 21, 2012 Cotton yarn prices jumped 14 per cent in two weeks on a sudden spurt in demand from both the domestic as well as international markets. The benchmark variety of cotton yarn for 30’s combed, shot up to Rs 200 a kg today, from Rs 175 a kg about a fortnight ago in the spot Ludhiana market. In Mumbai’s popular yarn market, the commodity was traded at Rs 195 a kg versus Rs 170 a kg about two weeks ago. “ Export of cotton yarn has been on a rise due to bulk demand coming in from India’s inherent buyer, China. Also, seasonal domestic demand has started picking up. Rising demand has supported the textile raw material price to move northward,” said Bharat Malkan , a Mumbai-based cotton yarn trader. FLYING HIGH : Registration of contracts for cotton yarn export Month     In mn kgs Mar     64.227 Apr     62.811 May     74.455 Jun   ...

Jai Balaji Industries Ltd : Breaks Out Jai Balaji Industries Ltd today moved  up and  hit the buyer Free ze in BSE , buoyed on the mining story, as it closed above its 100 DSMA and 200 DSMA.  The scrip clocked a good volume today in the BS E (16, 873) against its 2 W Average. What is interesting is the delivery volume which is 84.20% and looks convincing. The promoters have been continuously buying the share from the market, through open market purchases. Another important development is that, it is out of T-group and should be available for n etting.  On the fundamental front there two few prominent developments :  The Company's planned expansion of 350000 MTPA Coke Oven Plant along with Waste Heat Recovery Boiler of 80 TPH is in advanced stage and infrastructure work of roads & drains for the entire plant is commissioned. The DRI Plant of 60000 MT & coal washery in subsidiary company M/s  Nilachal Iron & Power Limited is already ...