SumanSpeaks: The Information Super Highway

Important (i) I have spoken with the sources of Southern Online Bio Technologies Ltd, regarding the approval of the Bank Loans and the answer is that, the banks have approved the loans. Now in the plant at Vizag, all modifications have taken place and Raw Material supply & finished product contracts are signed and are in place. The unit has started trial production and within some months it will be ready for exports, which will give a tremendous boost in the earnings. The additional working working capital has been infused after a consortium of Banks approved the same. There are talks of interest rate waivers, like in case of Jai Balaji Industries Ltd and Suzlon Energy Ltd and the company hopes to get at least 200 bps, interest subvention in the total loans. The company's plant at Samsthan Narayanpur Village & Mandal, Nalgonda District with 30,000 Liters per day capacity  is working well and also its ISP division is also performing satisfactorily....

First CCI meet directs oil, defence ministries to settle differences in one month Issues stern warning on 39 stalled exploration blocks Sanjeeb Mukherjee The much-awaited first meeting of the Cabinet Committee on Investment ( CCI) that was expected to push $15 billion investment in oil exploration today ended with directive to the oil and defence ministries to sort out their differences in a month’s time on the stalled 39 oil exploration blocks. Headed by Prime Minister Manmohan Singh, the committee has been vested with overarching powers to clear investment bottlenecks but contrary to expectations it could not settle the matter of cancellations of defence clearances but issued a stern warning to settle issues-related to the  39 stalled blocks. "The oil and gas sector specifically from investment remit was discussed extensively. Certain problems were identified and the Ministry of Petroleum and Natural Gas has been tasked with responsibility of sitting down with the Mini...

Market Mantra Southern Onlie Bio Tech hits the BUYER FREEZE before cooling down. One should accumulating from here. CMP; Rs.4.55 . Buy  J P Associates at Rs.86--86.20, T--Rs.91, SL--Rs.85. Following RBI Policy one shoud buy all the rate sensitives. Subbarao has cut the repo rate, the rate at which RBI lends to banks by 25 basis points to 7.75% as markets expected. A bonus 25 basis points cut in cash reserve ratio cut at 4% that will release Rs 18,000 crores into the system. A basis point is 0.01 percentage point. Gross Domestic Product growth for the fiscal has been reduced to 5.5%, from 5.8%. Inflation as measured by the Wholesale Price Index may fall to 6.8%, from earlier forecast 7.5%. Buy Nifty futures at 6066 (spot), T---6090, SL--6040 (spot)......The marke is now buy on dips.

Buy: Southern Online Bio Technologies Ltd BSE Code: 532669 CMP: Rs.4.73 There is some mindless selling going on in the counter of Southern Online Bio Technologies Ltd, even as the company spoke of to raising an amount Rs.6.25 Crores by way of preferential issue of 62.50 lakh Equity shares to promoters and others at face value of Rs.10 per share.  Let us examine a bit of the company in the current context: The activities of the Company can be broadly classified into two segments, viz., Internet Service Provider (ISP) , Manufacturing of Bio Diesel, Used Cooking Oil trading and Contract. The ISP division provides Internet Bandwidth to the Corporate Clients, Educational Institutions, Cyber Cafes, & Individual etc.., The Bio Diesel division manufactures the Bio Diesel. The company does, Cross Country Trading of Used Cooking Oi, as is mentioned above and  which is often overlooked. Post Preferential Allotment , the Promoters' Holdi...

Market Mantra Suzlon Energy Ltd moves up today by more  than  6% in the early afternoon trade. There are some positive developments in the company. Buy Sintex Industries Ltd at Rs.63, T--Rs.71, SL--Rs.59. The book value of the shares of the company is Rs.74.67.  It is a profit making blue chip company. Investors should start accumulating Geodesic Ltd when  the price stabilizes---it is a blue chip company. CMP: Rs.19.05. Investors should accumulate, United Breweries Holdings Ltd at Rs.88, T--Rs.115--121. CLICK HERE .

Make equity mkt more attractive to wean away gold demand: Uday Kotak Says we need to take channelise Indian savings into equities Press Trust of India     Policymakers need to take urgent steps to make equities more attractive to wean away investors' interest from an idle asset like gold, top banker Uday Kotak said here. Kotak, who heads private banking major Kotak Mahindra Bank, said that the Indian equity market should give a return of 15-20% this year based on the current levels and this growth should help investors to look away from gold towards equity as an investment option. "Time has come for channelling Indian savings into Indian equity and we will have to take whatever policy measure we can to achieve this goal," Kotak told PTI in an interview here on the sidelines of the World Economic Forum. A regular visitor to the WEF meeting at this Swiss Alpine town, Kotak had said last year at Davos itself that urgent steps were needed to curb gold demand, es...

WINNING STROKES: THINK DIFFERENT Late Afternoon Call on IRB Infrastructure Ltd at Rs.120, saw it touch Rs.124, intra-day. Today was a great chance to pick up this stock, due to some special reasons. Join either my Paid Service or my Brokerage House to get full details. 2nd call of the day was a buy on Jai Prakash Associates Ltd at Rs.88.   Jaiprakash Associates Limited, a member of the promoter group of Jaypee Infratech Ltd ("JIL"), earlier today informed the BSE that it wished to offer 27,864,584 equity shares of face value Rs.10 each of JIL for sale to meet the minimum public shareholding requirements as issued by SEBI ("OFS Shares"). In addition to the OFS Shares, the Seller may also sell up to 70,619,430 equity shares of face value of Rs. 10 each of JIL in the OFS (the "Additional Shares" and together with the OFS Share, the "Shares"). This has nothing much to do with Jai Prakash Associates Ltd and hence those who bought today, should s...

WPI Inflation Should Now Come Down A Little Faster...... I SEE 1st SIGNS OF WPI Inflation coming down a little more drastically............. The reasons, are the same old ones, but in a new pack : 1. The Fiscal Deficit is expected to reduce, due to some recent fiscal steps by the GOI, including increasing of import duty on Gold and diesel price partial de-regulation. This will also reduce the chance of the government to go in for more and more deficit financing. Such kinds of deficit financing leads to what is known as "Peace Time Inflation".  2. The Indian Rupee is hovering near three-month high, with an upward bias.  3. The government  has decided to put a jolt on excessive spending.  4. Disinvestment of the PSUs, which is expected to increase long term competitiveness and productivity, can also be looked as anti--inflationary. This comes under supply side policies.  5. RBIs' constant intervention in the currency market, to prevent  INR ...

Important Southern Online Bio Tech (SBTL) has started the stabilization work in its second plant, which is expected to be completed by the end of March, 2013. Its first plant is already working. The company is setting up a 3rd bio-diesel plant, which is expected to be completed in 2014. The Q3FY13 result of the SBTL is expected to be a little better that Q2FY12--the losses are expected to be reduced. The book value of the shares of the company is expected to increase in the coming days. At present the book value of the shares of the company is Rs.6.24. The company is expected to benefit from the rise in diesel prices or due to partial de-regulation of the diesel price. The market cap of the company is still very low at Rs.17.65 Cr. The Q3FY13, result of the company is expected to be declared on 13 th February, 2013.

Diesel price hike credit positive for oil marketing firms: Moody’s COIMBATORE: The move to de-regulate diesel prices is credit positive for all the three state-run oil marketing companies (OMCs), according to Moody's Investors Service, a division of ratings agency Moody's. Please Click on the Photo to Expand "The authorization is credit positive for all three companies because higher diesel prices will reduce the amount of fuel subsidy they need to temporarily absorb until they receive a full or partial payment from the government," Moody's said. Although it is unclear how much leeway the companies will get in determining the amount and timing of the diesel price revisions, the authorization marks the first time that they are able to raise prices, it said. "This partial deregulation aims to reduce government subsidies paid to the firms and lower the companies' losses on fuel sales," said Rachel Chua, Associate Analyst, Moody's Inves...

Dr.Vijay Mallya Effect:  State Bank of India tunes down its stand from $ 1 billon to now Rs.2000 Cr; others ask Kingfisher to come up, with only Rs.800-1000 Cr Kingfisher Airlines need to bring at least Rs.2,000 crore of capital for revival, State Bank of India (SBI) said today. “The company has to bring in minimum capital of Rs 2,000 crore, then there can be some possibilty… (of revival)” said Pratip Chaudhuri, chairman, SBI. Talks are on but there is no progress he added. Yesterday bankers once again met again Kingfisher Airlines' management in another inconclusive meeting. “If the company doesn’t wish to fly, what can banks do about it” he said.  "Till the company doesn’t bring money from its own capital I don’t think anything can happen," Chaudhuri further said.  The solution has to come from the company, he said, indicating that the banks won’t fund till the company brings some amount from its own funds. Talking about taking legal recourse and reali...

Suzlon Energy Ltd,  gets a Moratorium period of  2 (two) years on both Interest & Principal Payments Suzlon Energy Ltd, world's 5th largest wind turbine producer,  received an approval for its debt restructuring package, from the lenders. Sources said that lenders have approved Suzlon's INR 9600 crore worth corporate debt restructuring package. Sources added that “As per the agreement, the company will repay USD 1 billion dues to lenders by March 2016." Sources further added that the company will get a moratorium period of two years on both interest and principal payments. There will be no additional funding from banks, but lenders have decided that during this two year moratorium period, when the interest will be waived off, it will be converted into a term loan. This term loan will again be converted into equity over these two years. So, around INR 1600 crore of loans will be converted into equity over that two year period. The promoters have also ag...

Suzlon installed capacity in AP crosses 150 MW [Now with the diesel price rising there would be natural shift towards Green Power, because of  less production cost. Suzlon Energy Ltd already has more than Rs.40, 000 Cr (approx) of order book as of now, which is expected to shoot to Rs.45, 000 Cr plus, by the end of this fiscal. The company would get an interest rate waiver of around 300 bps which is not a matter of joke over and above of a couple of years of moratorium on the EMI payment to the banks ( The lenders have lowered interest rate on loans to around 11% from 14% earlier. They have also agreed to a moratorium period of two years on payment of both interest and principal) . Also, now since the CDR package is over, we can look forward for good balance sheet in the coming days. I expect Suzlon Energy Ltd to return to BLACK within  a few quarters. Buy of the shares at CMP of Rs.19, is highly recommeded].  Hyderabad, Jan 18: Suzlon Energy Ltd today announced...

Suzlon Energy gets lenders' nod for Rs 14,000 crore debt recast MUMBAI: Lenders of Suzlon Energy Ltd have approved the loss-making wind turbine maker's proposal to recast its Rs 14,000-crore debt, giving a breather to the company which has been reeling under the impact of slowdown in business and high debt burden.  People close to the development told ET that lenders have approved the debt recast on the condition that Suzlon gets a capital infusion of Rs 250 crore now and another Rs 500 crore over the next 18 months.  "The promoters will have to pump in fresh capital. The company has agreed to sell some of it non-core assets to meet the demand of the banks," a banker close to the development said.  The lenders have lowered interest rate on loans to around 11% from 14% earlier. They have also agreed to a moratorium period of two years on payment of both interest and principal.  Responding to a query from ET, Suzlon said, "We will be making an announc...

Kingfisher-lenders meet today on debt repayment and revival plan Lenders of troubled carrier Kingfisher will meet the airlines’ management on Friday to know about its debt repayment and revival plan. “Friday will be a challenging day for Vijay Mallya and the bankers to come to a platform and see whether they can sail through the crisis together,” said M V Tanksale, Chairman and Managing Director, Central Bank of India. Central Bank of India is one of the 18 lenders to the airline. However, it is not part of the core group which bankers had formed in December to monitor the company’s revival plan. The lenders’ consortium is led by the State Bank of India while some of the other lenders are Punjab National Bank, Bank of India, Bank of Baroda and IDBI Bank. Yesterday, Kingfisher got No-Objection Certificates (NOCs) from oil companies and leasers to start operations. However, it is yet to get NOCs from the banks, airport operators, Airport Authority of India ( AAI) and Direct...

Suzlon Energy hopeful of signing CDR package, stock rallies The conditions have been finalised between the company and a consortium of lenders are waiting for them to sign it, reports suggest SI Reporter / Mumbai Jan 17, 2013. Suzlon Energy has surged over 4% to Rs.19.75 on back of heavy volumes on hopes of signing a corporate debt restructuring (CDR) package with consortium of lenders. The stock opened at Rs.19.70 and hit a high of Rs.19.90 on BSE. As many as a combined 8.1 million shares have already changed hands on the counter in early morning deals on both the exchanges. “The conditions have been finalised with Suzlon Energy and a consortium of lenders are waiting for them to sign it,” the Business Standard report suggests quoting a banker who is a part of the consortium which has more than 11 banks. The company’s net debt would be around Rs.13,000 crore, which would be restructured. Courtesy: Business Standard

WINNING STROKES :  THINK DIFFERENT Southern  Online Bio Tech Ltd  hit another buyer freeze in the opening trade. The much expected diesel price hike has taken place and is positive for the companies in this space. This company as you know is into the making of bio-diesels.  Suzlon Energy Ltd today touched Rs.19.90, after yesterday's panic selling. Any  hike in the diesel price is positive for renewable energy companies because the cost of producing power using diesel becomes costly. In such a scenario, naturally there could be shift towards the generation of power from renewable sources like wind, which Suzlon Energy Ltd is doing.  Though the IT sector is expected to show firmness, both Geodesic Ltd (CMP: Rs.22.80)  and Rolta India Ltd (Rs.66.60) closed flat today. However, in the short to medium term, they should do extremely well. Both the companies have good order book positions and have presence in North America.  Yesterday's Nifty...

Indian Guinea Pigs : Starve Them To Control Inflation Yes, this seems to be the logic of the Governor of RBI, to keep on harping on inflation, the every other day, to justify his stand on a status--quo on repo rate cut. He has no thought of how the loans are getting nonviable for companies, who are not able to pay them.  Now, many of the policies of inflation control that we nowadays use routinely are direct outcomes of the research and contemplation of economists of earlier years. However, the lamenting point is that, off-late, these are applied by every body, starting from the eminent economists to chartists to men on the streets, to even "Paanwala" ( "Array sahab RBI bechara,  bhi kya kare, Kambhakt inflation niche utarne ka naam bhi nahi le raha hai" ) or may be my "Rickshawala" ( "Sahab Mehengai ki wajeh se hi sab problem  hai. Ekbar unko niche aane do, hum sab market se khub kamayenge. Mera bhi Demat Account  hai na!! Kya saab aap bh...

Geodesic Board recommended Final Dividend of Rs.2 The Board of Directors of Geodesic Ltd at its meeting held on December 03, 2012, had Considered and recommended final dividend @ Rs. 2/- per share on the face value of Rs. 2 each on equity shares of the Company to be paid after approval of shareholders in the AGM. Therefore, if anyone is buying the share now, should be entitled to a divided, which is not at all bad at the CMP of Rs.24-25. 

Rolta India Ltd :  Beautiful Chart Pattern Remember , Rolta India Ltd has an order book of around Rs.2500 crore, which is any case is good in case of any IT company. Besides, the depreciation of INR against the USD, is already helping lot of the Indian IT companies to strengthen their  bottomlines.. Also, during the last few years, it has implemented some of its important strategies. It has acquired a lot of companies in North America to enter into the IT business and get acquisition of customers, technology and people. After, following these kind of unique and innovative strategies, the  large orders have started coming in.  In the recent order, the company is implementing, not only Oracle ERP but also geospatial information system (GIS) and Human Resources, Hyperion and Business Intelligence. So, this shows the depth of the company and it is better compared to many others who only specialise in IT.

Kingfisher says working on plan to restart by Feb end CEO Sanjay Aggarwal to meet DGCA today; airline says has made seven ATR planes ready for inspection  Mumbai: Kingfisher Airlines Ltd is working out a plan to restart operations by the end of February, and the airline has made seven small ATR planes ready for inspection with small set of pilots retrained to support the plan, according to two airline executives. They said the resumption plan by February end is subject to approval by the Directorate General of Civil Aviation (DGCA) and various airport operators, including state-run Airports Authority of India. Kingfisher Airlines’ operating licence was suspended in October by DGCA, following a strike by the airline’s employees. The licence has since expired. Sanjay Aggarwal, chief executive officer of Kingfisher Airlines, is scheduled to meet director general of civil aviation Arun Mishra on Wednesday morning. “The restart plan is ready and we are aiming to be back ...

Suzlon Energy's CDR package to be signed in 2-3 days Company's net debt of Rs.13,000 crore to be restructured Katya Naidu & Abhijit Lele  A consortium of lenders and troubled wind turbine maker Suzlon Energy, might be officially signing a corporate debt restructuring (CDR) package in the next two to three days, say banking sources. “The conditions have been finalised and we are waiting for them to sign it,” said a banker who is a part of the consortium which has more than 11 banks. The company’s net debt would be around Rs 13,000 crore, which would be restructured. Suzlon said that they would not be commenting on their CDR which is under process. Suzlon’s debt structure was reworked earlier as well, in late 2009. “At that time it was just a re-financing where interest rates were not changed. But this time around, it is real restructuring,” said a top banker for a public sector bank. This move comes after the company defaulted on repayment of foreign currency...

WINNING STROKES : THINK DIFFERENT Today's Call, Geodesic Ltd (BSE Code: 503699) hit the Buyer Freeze at Rs.24, with huge pending orders. I had earlier mentioned that, according to some sources,  Kotak Securities Ltd, has replaced Arshiya International Ltd with Goedesic Ltd as its top 5 of  "13" picks. So, wait for some more circuits in the coming days.  Suzlon Energy Ltd went for some profit booking at the end of the trade, however, the story remains. Those who wants to take it as a fixed deposit should continue to add the scrip on declines, with a certain target in mind.  Southern Online Bio Tech Ltd, hit another buyer freeze in the opening trade. A scrip will hit the upper circuits, if it has fundamentals however much one tries to stop it. But the behavior of the Bombay Stock Exchange is appalling. SEBI should take a ction against them........! ! Also, I ask the company on the behalf of the shareholders, to place a complaint to SEBI on this...