SumanSpeaks: The Information Super Highway

Market Mantra Glodyne Tech Ltd which was recommended repeatedly, here in this blog, hits the buyer freeze at Rs.11.77. The scrips of these kinds of blue chip companies, should always be accumulated in all dips.    HDIL has come up with not so encouraging Q4FY13 results, but the current price of Rs.46.40, factors that & this the reason precisely why the scrip fell from around Rs.120, to the current price. This is not the time to go for shorts but accumulate the scrip and keep holding. The company has given good guidance for the future quarters. On the issue of Mumbai International Airport Limited (MIAL), the Company management said, "We are going to approach the courts, and yes, it was generating a lot of TDR for us. But at the end of the day, HDIL has several projects to generate, TDR, the airport project was one of them. We have other schemes, we will continue to do so and generate TDR from them. We have about 1 million square feet of TDR which is left which will ...

Housing Development & Infrastructure Ltd : Gives a Break Out Housing Development & Infrastructure Limited has developed over 100 million sq. ft. area. The operations are spanning in every aspect of the real estate business, from residential, commercial and retail projects, to slum rehabilitation to land development. It has also diversified into energy, hospitality and the development of SEZs.  It is a major player in Mumbai Realty with 90% land Reserves in the Mumbai Metropolitan Region (MMR) and are market leaders in residential and SRA projects in the Mumbai Metropolitan Region (MMR). It is currently executing the largest SRA project for rehabilitation of approx. 85,000 slum dwellers under expansion & modernization of Chhatrapati Shivaji International Airport, Mumbai.  The company has more than 20 ongoing projects with a combination of Residential, Commercial and SRA. Its ongoing projects are located at Virar, Andheri, Goregoan, Bhandup, Palghar and Mu...

Market Mantra Strongly recommended call of HDIL touched Rs.52.50, before the results on 29th May, 2013. The scrip which has a book value of Rs.238.53 is now trading at a joke. I am  looking at a target of Rs.120-122 in the next few weeks. The company has huge land bank and there is no reason to worry about its financials. HDIL had land bank of 229.93 mn sq ft  (1 million= 10 lakhs) as on 30th June, 2012. The TDR price as of August, 2012 were ~ Rs.2500 to Rs.3000 per sq. ft. Now calculate and compare the figures with the Gross debt of the company. Did you see the worth in the company's shares? Buy it and keep holding, even at this price of Rs.51-52. Also, the news that  RBI has barred banks from lending against gold exchange traded-funds and gold mutual funds is positive for the equity markets. This is expected to keep the Bulls happy. Buy ARSS Infrastructure Projects Ltd (BSE Code: 533163) at Rs.31-31.50, T--Rs.37, SL--Rs.29.  The company has reduced the lo...

Central Bank of India: Ready to Fly Ahead: Introduction : Established in 1911, Central Bank of India was the first Indian commercial bank which was wholly owned and managed by Indians. The establishment of the Bank was the ultimate realisation of the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of pride felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as the 'property of the nation and the country's asset'. He also added that 'Central Bank of India lives on people's faith and regards itself as the people's own bank'. During the past 99 years of history the Bank has weathered many storms and faced many challenges. The Bank could successfully transform every threat into business opportunity and excelled over its peers in the Banking industry. Financials : The Book value of the shares of the company is Rs....

Housing Development Infrastructure Ltd (HDIL) : Rationale Behind My Recommendation CMP: Rs.49.15 (i) If you carefully observe the video below, you find that Mr.Hariprakash Pandey, VP-Finance, HDIL is saying that the company's debt as compared to December, 2012 has come down by Rs.200 Cr and there are no plans for further dilution of the stake by the promoters. HDIL was once Mumbai's (Bombay's) largest company by market cap in the Real Estate Sector. (ii) Some of its short term borrowing have been replaced by long term ones. Hence, this is expected to bring much relief, in terms of  solving short term financial pressures. Moreover, the company is servicing its debt as per schedule. (iii) The company continues to get better realizations from the sale of its projects. During Q3FY13 quarter, the Company launched the Second phase of Virar Residency Park at Virar (Mumbai Metropolitan Area). (iv) The promoters could initiate a BUY BACK of SHARES of the COMPANY, f...

FM P Chidambaram Asks Investors To Tap Opportunities At Home MUMBAI: India Inc should stop looking abroad and focus on tapping huge investment opportunities within the country, especially in the infrastructure sector, which offers long-term benefits, Finance Minister P Chidambaram said on Friday. "Many of you think that the risks of investing abroad are less than the risk of investing in India. That is another short-sighted view. The long term benefits of investing in India outweigh the benefits of investing abroad," he said while speaking at a seminar to mark 25 years of Sebi. Most important challenge before the country is to revive the investment cycle, he said. "I would urge investors to rebalance the portfolio and invest more in India. This is where the market is, this is where the market will shift, this is where the demand is, this is where demand will continue to be robust over the next 20-30 years. Indian investors must invest more in India rather than inve...

Don't dance to China, Japan tunes : FM tells investors Ask them not to misinterpret Bernanke's statement and India's economic fundamentals As stock markets tumbled on worries that the US Federal Reserve might cut monetary stimulus, Finance Minister P Chidambaram tried to soothe investors’ nerves and asked them to read the US central bank governor’s statement and India’s macroeconomic parameters correctly. He asked them not to link specific economic parameters in Japan and China to the Indian economy, as low purchasing managers index number for Chinese manufacturing also contributed to nervous selling in stock markets. “I think someone either misunderstood or misinterpreted the (Fed chief ) statement. If we read the statement carefully, he has clearly indicated  he will continue with quantitative easing in the foreseeable future at about $85 billion (Rs 4.7 lakh crore) a month or so,” Chidambaram told reporters after  nervous selling in Indian stock markets. The mini...

Market Mantra: Indian Mark ets Are Still Buy On Dips [ Editor : Today's sharp fall seems to be totally orchestrated, so be careful, with your shorts. There is no reason for panic in the Indian Markets, though small corrections are always welcome, as it helps the entry of fresh funds. Why should REAL ESTATE/ CONSTRUCTION STOCKS CORRECT, when the INTEREST RATES are set to come down? Is there any logic, especially when the FIIs are pouring funds on daily basis....? CLICK HERE . A group of Chartists come on various Financial Channels and starts giving random calls and people starts following them---not to mention most LOSE THEIR DEPOSITS. If only following charts could have made someone RICH, then these marketmen, would not have spoiled their time advising others] Since the morning trade, Nifty after opening at around 6050 made a high of 6081 and then suddenly a crash came following negative cues from both the Japan and the China, which took it down to 5972. Also, yesterda...

Weakening of the INR against the USD might help the IT and Textile Companies The yen weakened against the dollar, halting its biggest gain in three weeks, after Japan’s Economy Minister Akira Amari backed away from weekend comments that prompted the currency to rally. The pound slid to a six-week low against the dollar after a government report showed inflation slowed more than economists forecast, giving the central bank more room to boost stimulus that tends to weaken a currency. Dollar gains were capped before Wednesday's testimony from U.S. Federal Reserve Chairman Ben Bernanke.Speculation the U.S. central bank will trim its bond purchases sooner than expected has mounted given signs of an improvement in the U.S. labor market. Bernanke testifies to Congress at 10 a.m. EDT (1400 GMT) and his words will be combed for clues. The currency specialists say that the trend is positive for USD, infact INR is seen weakening further against all major currencies (like EU...

Turnaround likely for Srei Infra's rural arm ~~Sumit Moitra  SREI Infrastructure’s, CMD, Hemant Kanoria Srei Infrastructure Finance Limited has appointed consultancy major McKinsey to evaluate operations and strengthen new lines of revenues of its rural arm, Srei Sahaj e-Village, which is expected to turn around this fiscal. “We expect this year to be (operating profit- or) Ebitda-positive (for Srei Sahaj) and grow much faster, going forward,” vice chairman Sunil Kanoria told analysts on Tuesday. Srei Sahaj operates 26,000 common services centres covering 29 crore people across six states. Through it, Srei Infra plans to launch its white-label automated teller machines (ATMs), or machines not linked to any single bank. For this, Srei Infra received the Reserve Bank of India’s approval in April. Srei is targeting rural centres under Sahaj that have internet and VSat connectivity but not bank branches. “We have to work out an appropriate business model as we are the only comp...

SBEI Infrastructure Finance Ltd : Buy For Immediate Gains Please Click on the Chart to Expand SREI Infrastructure Finance Ltd is a Holistic Infrastructure Institution, constantly and consistently ideating to deliver innovative solutions in infrastructure space, thus playing a significant role in nation-building for over two decades, both in urban and rural India. SREI's businesses include Infrastructure Project Finance, Advisory and Development, Infrastructure Equipment Finance, Venture Capital, Capital Market and Insurance Broking. Srei has a pan India presence with a network of 85 offices and has also replicated its business model overseas with two offices in Russia and one in Germany. SREI Infrastructure Finance Limited, India’s one of the leading infrastructure financial institutions, recorded a 27% growth in its Consolidated Total Income at Rs.3,109.92 crore during the year ended March 31, 2013 as compared to Rs.2,446.33 crore during the corresponding period last...

WINNING STROKES: THINK DIFFERENT Yesterdays' call, Kalindee Rail Nirman Ltd at Rs.50, touched Rs.56.75, giving more than 10% return in just 24 hours. The scrip clocked a massive volume today. Do, keep an eye on my blog and my Facebook postings, if you are not a Paid Member or do not trade through my recommended brokerage house. Buy SREI Infrastructure Finance Ltd (BSE Code: 523756) at Rs.27.90--28.20, T--Rs.33, SL < Rs.26.  The company has reported Jan-Mar consolidated net profit of Rs.69.3 Cr as against Rs.13.2 Cr  a year ago and consolidated total income moved up by around 20% to of Rs.7.8 bln (1 billion = 100 Cr), on Y-o-Y basis. CLICK HERE . The market witnessed profit booking today.  The  Nifty_Spot is now just above the very important support  level of 6111. If tomorrow Nifty_Spot, closes below 6111, then the immediate trend could turn to negative or the bulls could get a severe beating. However, trend is still BULLISH, as FII pour...

SREI Infra PAT soars 136% SREI Infrastructure Finance Limited, one of the largest infrastructure financial institutions in the country, on Monday registered a 136 per cent growth in its consolidated profit after tax (PAT). The company’s consolidated total income grew by 27 per cent during the last fiscal year. This, despite FY13 being one of the most challenging years for the infrastructure sector in the country. The consolidated PAT increased to Rs 263.18 crore in the year ended March 31, 2013, up from Rs 111.81 crore in the previous year. The consolidated total income moved up to Rs 3,109.92 crore during the year, up from Rs 2,446.33 crore during the previous year. “This year saw infrastructure development slow down dramatically due to government being in consternation regarding the path ahead, thanks to massive private sector investments in the sector,” said Hemant Kanoria, CMD, Srei Infrastructure Finance. Courtesy : Financial Chronicle

Central Bank I n C ash C hase ~~PINAK GHOSH Tanksale: Funds pursuit Calcutta, May 19: The Central Bank of India plans to raise Rs 2,000 crore in fiscal 2013-14. “We are planning to raise about Rs 2,000 crore in the current year. This can ideally be either through qualified institutional placements or we can ask for funds from the government,” M.V. Tanksale, chairman and managing director of the Central Bank, told The Telegraph. The state-owned lender had raised Rs 2,406 crore in the fiscal ended March 31, 2013 through the preferential allotment of 30.8 crore equity shares to the government. This raised the government’s holding in the bank to 85.31 per cent from 79.15 per cent. The bank had further raised Rs 500 crore through bonds last year. The capital adequacy ratio of the bank, according to Basel II norms, stood at 11.49 per cent for fiscal 2012-13, down from 12.40 per cent a year ago. The funds could be utilised to further strengthen the bank’s capital base in l...

Central Bank of India: The Chart Turns Bullish Established in 1911, Central Bank of India was the first Indian commercial bank which was wholly owned and managed by Indians. The establishment of the Bank was the ultimate realisation of the dream of Sir Sorabji Pochkhanawala, founder of the Bank. Sir Pherozesha Mehta was the first Chairman of a truly 'Swadeshi Bank'. In fact, such was the extent of pride felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as the 'property of the nation and the country's asset'. He also added that 'Central Bank of India lives on people's faith and regards itself as the people's own bank'. During the past 99 years of history the Bank has weathered many storms and faced many challenges. The Bank could successfully transform every threat into business opportunity and excelled over its peers in the Banking industry. Shareholding Pattern : The promoters hold 85.31% while the gener...

Kalindiee Rail Nirman (Engineer): Will S urely Engineer A B etter P ortfolio Kalindee Rail Nirman (Engineers) Limited, today stand as Premier and Trusted agency in execution of Railway Track, Signaling & Telecommunication projects on turn key basis. It has rich and varied experience of more than three decades. The scrip has a book value of Rs.113.97, 9MEPS of Rs.7.59 and P / E of 6.57 (Industry P/E: 10.40), showing that the scrip is highly undervalued at the current conditions when the construction stocks are getting re-rated, in view of a cut in the CRR by the Central Bank. Made by Kalindee Rail Nirman (Engineers) For Q3FY13, the company came out with decent set of numbers. The net profit of the company for Q2FY13 came out to be Rs.3.26 as against Rs.3.06 in Q3FY12. Moreover, both the OPM and NPM show ed improve ment in Q3FY13, speaking Q-o-Q basis.  Work of Kalindee Rail Nirnam (Engineers) Recently the company announced that it was able to garner th...

Market Mantra The Nifty continued with its uptrend and closed with a gain of 17 points on Friday. Market traded within a range of 25 points between 6150 and 6175 almost for entire day. However, last hour buying took it to a high of 6200 and finally it settled at 6187, making a gain of 80 points in the last week and 723 points from the low of 5477 within 5 weeks time. This clearly shows massive strength of Bulls, as FIIs pour in funds. A clear rise above 6100 now sets a target to 6300-6350. The longs should be held, for the spot Nifty targets mentioned above. The Nifty_Spot is now at 6206, just below the immediate resistance at 6220. Resistance : 6220 / 6280 Support : 6170 / 6150 Asian indices rose as positive economic data from the US led to confidence in global economic recovery. The US equities touched record highs on Friday on better-than-expected economic data. Fundamentally speaking, the Share indices which opened a gap up tracking positive overseas markets...

Central Bank to shed Rs 16k-crore high-cost deposits in Q1 Bank has already brought-down share of high cost funds in total deposits though FY13 Public sector lender Central Bank of India plans to re-price high cost bulk deposits worth Rs.16,000 crore in the first quarter to bring down cost of funds. “The bank has already brought-down the share of high cost funds in total deposits though FY13. The interest rates for bulk money, including certificate of deposits (CDs) have declined in the last few weeks. This should help to reduce the cost of funds,” Chairman and Managing Director M V Tanksale said. The interest rates on short-term money have eased since the beginning of the new financial year. They were ruling in the band of 8.8-10.1 per cent in March and are in the 7.7-8.1 per cent band now (middle of May). The share of high cost deposits was about 31.8 per cent (Rs 62,447 crore) at the end of March 2012. It came down to Rs 24.37 per cent (Rs 55,085 crore) in March 2013....

Divergence I n S teel M ultiples A nd S hare P rices S pell P ositive S hipping O utlook ~~By Xun Yao Chen, Industrials Analyst Valuations can often tell investors the outlook of equities in the near future. Although value investors often look for valuations that are low, high valuations can often signal better times ahead. This is especially true for cyclical companies, such as steel producers and shipping companies, as has been mentioned by Peter Lynch in his famous book Beating the Streets. Steel producers’ valuation rose since April 19th On May 10th, the EV/EBITDA1 valuation multiple for steel producers in developed Asia2 rose to 9.52 from 8.93 times in April 19th 2013, rising 6.6% based on 2014 EBITDA estimates made by analysts in Asia. The multiple rose over the past few weeks as several central banks initiated interest rate cuts that will generally help support a weak global economy. Talks of the end to austerity in Europe has also fueled the broad market higher. The price...

Sarda Energy and Minerals Ltd: Breaks Out CMP: Rs.107.60 Sarda Energy & Minerals Limited (SEML) is one of the lowest cost producers of steel (sponge iron, billets, ingots, TMT bars) and one of the largest manufacturers and exporters of ferro alloys in India. Headquartered in Raipur, Chhattisgarh, the company merged with Chhattisgarh Electricity Company Limited (CECL) in 2007 with a vision to becoming a leading energy and minerals company.  The company has acquired iron ore, coal and manganese mines in India and is aggressively looking for mineral resources across the globe.  Sarda Energy & Minerals Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on May 25, 2013, inter alia, to : 1. approve the annual audited accounts for the financial year 2012-13; and 2. declare dividend on equity shares, if any.  Fin ancials : For the 1st 9 months of FY13, the EPS of the company is whooping Rs.20.84. This gives a targe t of...

Market Mantra My recommended A2Z Maintenance and Engineering Services Ltd moved to Rs.19.40. This is the scrip where the big bull Rakesh Jhunjhunwala holds around Rs.18.03 % stake. The morning speculative call Glodyne Tech Ltd at Rs.12.50 hit the upper fr eeze in the mid afternoon trade and is now locked at Rs.12.78 .  Buy SAIL (Steel Authority of India Ltd) at Rs.63 for a target of Rs.69-70, in the next few trading ses sions. The Cabinet may today take up a proposal to allow the company and Rashtriya Ispat Nigam to directly charter ships to import coal and other raw material.   Morning In tra-day call H DIL at Rs.58, gave good retu rns to the Paid Members as th e scrip touched Rs.60.20.  My earlier recommended Adani Port Ltd at Rs.151 today, touched Rs.161, after a spec tacular Q4FY13 res ults.  My recommend ed Eros International Media Lt d touched Rs.168.65. The scrip should give decent ret urns over a period of time. S KS Microfinance Ltd h...

Iron Ore Seen Strong Into 2014 on China Steel Demand, Supply ~~By Phoebe Sedgman Iron ore prices will remain strong into 2014 on sustained demand in China, the largest producer of steel, and as an increase in global supply takes longer than expected, according to Morgan Stanley. While the price has averaged $135 a ton this quarter from $148 in the first three months, that’s more than the bank’s estimate of $130 for the April to June period, analysts Joel Crane and Peter Richardson wrote in a report dated yesterday. The bank maintained its forecasts of $120 in the first quarter of 2014 and $118 in the second. Iron ore dropped 12 percent this year, nearing a bear market, on signs that economic growth in China is slowing and on expectations of increasing global supply led by Australia, the world’s biggest exporter. Morgan Stanley said April 23 that the global seaborne market will shift into surplus from 2015, after a run of deficits stretching back to at least 2005. Iron ore will b...

Gold slips below $1,400; buying in India comes to a halt A Great News for Indian Equity Market Participants!! NEW YORK/LONDON: Gold slid below $1,400 an ounce on Wednesday, losing two percent and hitting its lowest in nearly a month as a record rally in US equities and economic optimism undermined bullion's safe-haven appeal. The metal fell for a fifth straight session for its longest daily losing streak since January 2011 as the S&P 500 hit a new all-time high and Wall Street has risen for four consecutive sessions. "There is no reason to own gold as long as people keep on putting money into the stock market. You can see it everywhere that the economy is turning around," said Comex gold options floor trader Jonathan Jossen. A pause in strong physical demand after news India restricted imports to cut trading deficit also weighed on gold. Spot gold dropped as much as 2.5 percent to $1,390.24, its lowest since April 19. It was down 2 percent at $1,396.94 an ounc...