SumanSpeaks: The Information Super Highway

Updates on Glodyne Tech Ltd According to my close sources in Glodyne Tech Ltd: (i) The company has started to pay off the Loan installments in time and clear off the debts as soon as possible. It is also looking for a Corporate Debt Restructuring Scheme or coming up with some sort of agreement with the banks---the efforts are on, to clean the debts on the books, as soon as possible. (ii) The company at present is working on 2-3 NEW projects, which have started to gather steam. It is also looking for further consolidating its order book position by the end of CY13. (iii) The US subsidiary, has started to deliver, but this is expected to pick up the real steam by the end of CY13. The process is going on very fast. (iv) The company is looking to boost the fundamentals in the coming months and the market hopes that from Q2FY14, the results would start to pick up on the positive side. (v) The company's overseas assets have increased in value in rupee terms. as the IN...

Real Estate Sector : Report by Karvy Stock Broking

HDIL : Limping Back To Normalcy India's current account deficit (CAD) for the March quarter was $18.1 billion, or 3.6 per cent of GDP, lower than expected and below the $21.7 billion deficit a year earlier. The current account gap for the full fiscal year ending in March 2013 touched a record high of 4.5% of GDP at $87.8 billion, compared with $78.2 billion (4.2%) a year earlier. The central bank's comfort level for CAD is 2.5 per cent of GDP. The April-March CAD stood at $88.2 billion and the Q4 Balance of Payments ( BoP) stood at a surplus of $300 billion versus a $600 billion deficit year-on-year. This has again made the Real Estate Sector look attractive at the current price levels. CMP: Rs.35.15

Bernanke's colleagues speak out about end of QE3: One official thinks investors are overreacting NEW YORK: Days after Ben Bernanke signaled a gradual end to the Federal Reserve's stimulus efforts, his colleagues are chiming in with concerns. Did the Federal Reserve chairman go too far when he said that the central bank plans to reduce its stimulus buying later this year? Or did he leave out some important details? One official thinks investors are overreacting : Stimulus-hungry investors have been in a tizzy since Bernanke's press conference on Wednesday and are simultaneously shedding stocks and bonds. As a result, the S&P 500 has dropped about 4% since then, and the benchmark 10-year Treasury yield has risen to 2.6%, up from 2.2%. Why? Investors are concerned about how the economy will hold up when the Fed stops pumping in cash. Since last September, the Fed has engaged in a third round of "quantitative easing," an unconventional policy in...

Is the Selling Over Done? Probably yes!! To get some more clarity let us take a look at the events last week. On last Wednesday, we learnt that the Federal Reserve will continue its program of purchasing $85 billion in securities and will leave the target interest rate for federal funds untouched to support the U.S. economy. Here's a summary of the state of the U.S. economy from the Fed, which concluded two days of meetings last week:         "Information received since the Federal Open Market Committee met in May suggests that economic activity has been expanding at a moderate pace. Labor market conditions have shown further improvement in recent months, on balance, but the unemployment rate remains elevated. Household spending and business fixed investment advanced, and the housing sector has strengthened further, but fiscal policy is restraining economic growth." Now, we also know that to bolster the U.S. economy, the Federal Reserve has spent $85 billion ...

Market Mantra It seems from the morning trade the Nifty_Future is holding steadily above 5590 mark, which gives some confidence to the BULLS. Buy Nifty_Futures 5595, T--5700 (June Expiry), SL--5500. Fundamentally speaking there are few positive news too, which is expected to drive the Nifty up in the coming days:  (i) GOLD : Finance ministry increased duty drawback benefit for gold jewellery exporters. This will help shore up in INR. (ii) BANKING : RBI has lowered the risk weight and standard asset provisioning requirements for loans to residential housing projects. This is positive both for the Banking and Housing (Real Estate) Sector. (iii) RUPEE : RBI is set to further ease India Inc's access to ECBs to arrest the currency's decline. Positive for the INR. (iv) ONGC : Has commissioned the first unit of the region's single largest 363 MW gas fired thermal project at Palatana in Tripura. (v) Crude Price : The Fall in the crude price in the international ...

Investors shouldn't worry about the Fed ~~By Hibah Yousuf  Investors shouldn't worry about when the Federal Reserve is going to pull the plug on its stimulus program. During a press conference Wednesday afternoon, Fed chairman Ben Bernanke stressed his message: "Our purchases are tied to what happens in the economy," he said. "We have no deterministic or fixed plan." "I believe this Fed will continue to press its accommodative policy up until the point it is certain that it is not needed," said Jim Keenan, manager of BlackRock's high yield bond fund, during a recent interview. If the economy continues to improve in line with the Fed's outlook, Bernanke said it would be "appropriate to moderate the monthly pace of purchases later this year," and end the program by the time the unemployment rate comes down to 7%, which the Fed expects will be around mid-2014. But he repeatedly stressed that if economic growth or hirin...

WINNING STROKES : THINK DIFFERENT Glodyne Tech Ltd hit the buyer freeze in the opening trade at Rs.10.41 on the BSE. The book value of the scrip is whooping Rs.180.27 and its market cap is only Rs.47 Cr, which is nowhere as compared to the total income of the company in FY13 (Rs.1187.19 Cr). Can you believe that you are buying a scrip, whose FY13 income was Rs.1187.19 but the market cap is only Rs.47 Cr? The scrip was recommended a buy to the Paid Members only a couple of days back. Central Bank Ltd whose chart turned bullish yesterday, as was mentioned in this blog, today gave a triangle break out pattern. The next target is Rs.71-72 if the current market condition prevails. IVRCL Ltd whose chart was also showing some formation today moved to Rs.16.85 before settling at Rs.16.50. I have raised the target of the scrip to Rs.27.

IVRCL Ltd : The Chart Turns Bullish The promoters holding in the company stood at 13.70% while Institutions and Non-Institutions held 26.19% and 60.12% respectively. Infra player IVRCL is reportedly planning to reduce its debt worth Rs 1,000 crore via stake sale in its special purpose vehicles (SPVs) this year. At present, the company has an order-book of Rs 26,000 crore. However, of the total, orders worth Rs 18,000-20,000 crore are executable. The company has been performing well in segments like buildings, irrigation but orders from the transmission line segment are at nascent stage. IVRCL is engaged into engineering procurement and construction (EPC) activities in India. It conducts operations in 5 sectors namely Water and Environment, Transportation, Buildings, Power and Industrial Structures. CLICK HERE .

After Market Opening Chart Check The markets yesterday as witnessed the rally for second day. Although, Nifty went down to 5770 during intraday correction, sustained buying pulled it up to 5855, finally giving a close at 5850 with a gain of 50 points. Market has bounced back strongly from the support of 5700. The initial downside target of 5680 was achieved. Today, the Nifty_Spot is still trading above the level of 5810, which does not negate this upmove. MACD and Mass Index are in buy mode and oscillators are still in the oversold territories. Therefore, the rally is expected to continue albeit with some intra-day, corrections or bouts of profit booking. This rally is expected to take Nifty back to 5900-5950 once again. Resistance : 5870 / 5900 (Nifty_Spot) Support : 5810 / 5790 (Nifty_Spot) The US markets ended up on Monday ahead of the two-day meet of the US Federal Open Market Committee, which will begin today. US Fed will give the time frame on withdrawal o...

Central Bank : The Chart Turns Bullish Central Bank was asked to be accumulated last week. After that the scrip has steadily appreciated on the back of good Q4FY13 numbers and other developments. Recently, NTPC signed term loan agreement with Central Bank for Rs.490 Cr. Central Bank of India also recently Renewed the CBS agreement with Tata Consultancy Services. The scrip in all probability will reach Rs.71-72, in the next few trading sessions, if the general trend of the market remains positive. CLICK HERE .

Central Bank : The Chart Turns Bullish Central Bank was asked to be accumulated last week. After that the scrip has steadily appreciated on the back of good Q4FY13 numbers and other developments. Recently, NTPC signed term loan agreement with Central Bank for Rs.490 Cr. Central Bank of India also recently Renewed the CBS agreement with Tata Consultancy Services. The scrip in all probability will reach Rs.71-72, in the next few trading sessions, if the general trend of the market remains positive. CLICK HERE .

HDIL : Bullish pattern is slowly building up Today inspite of the RBI not coming up with either a Repo rate cut or a CRR cut, the scrip closed near its day's high. This indicates that there is interest in the scrip, from the punters to make quick bucks. This scrip  has already fallen from Rs.120 plus to the current level. Hence, it should be accumulated, because we are now gradually approaching towards the results of the June, 2013 quarter. Hence, the effect of the March, 2013 quarter results are expected to be over soon. CMP: Rs.37 .75.

ARSS Infrastructure Ltd : Building Foundations for Future Upmoves The Company's debt is under CDR which was approved on 19/07/12 by the CDR empowered Group (CDREG) and was implemented on 06/09/2012. In terms of the guidelines issued by the CDREG the company has issued Compulsory Convertible Preference Shares to the Promoters and their associates to the tune of Rs.15 Cr on preferential allotment basis.  Would you believe that, if I say in 2010, Reliance Money gave a buy target of Rs. 1444 for ARSS Infrastructure Ltd. CLICK HERE . CMP: Rs.23.70.

IVRCL Ltd : Patterns are being formed The scrip of IVRCL Ltd was recommended earlier also around Rs.15.50, for a target of Rs.19-21, as the infrastructure sector is expected to gather steam in the coming days, following a CRR cut by the RBI.  Also, the banks will now slowly start thinking of passing on the earlier repo rate cuts by the RBI, to the corporate world. The scrip of IVRCL Ltd is still in a buy mode.  The Indian infrastructure sector continued to languish in FY13 due to poor macroeconomic forces, policy gridlock and political instability. Delays in land acquisition and environmental clearances and poor enforcement of contracts. However, the input costs have started to come down due to fall in inflation. Also, some areas are showing some developments: the telecom sector saw the emergence of the National Telecom Policy, a cohesive document covering a broad range of communication services. In both civil aviation and power sectors, the Government of India has ...

Inflation falls to 4.7% in May vs 4.89% in April The WPI-based inflation fell to 4.7 per cent in May, driven mainly by softening prices of manufactured items, even as prices of food articles inched up. Inflation based on the Wholesale Price Index (WPI) stood at 4.89 per cent in April. In May, 2012, it was 7.55 per cent. As per official data released on Friday, WPI inflation in the manufactured items category declined to 3.11 per cent in May from 3.41 per cent in April. The non-food articles category, which include fibre, oil seeds and minerals, saw sharp decline in inflation to 4.88 per cent, from 7.59 per cent in April. However, inflation in food articles category, which has a 14.34 per cent share in the WPI basket, rose to 8.25 per cent in May. Inflation in this category was at 6.08 per cent in April. The rise in food inflation was on account of increase in prices of onions, vegetables, cereals and protein-based items. Inflation in vegetables stood at 4.85 per cent ...

After Market Opening Chart Check Yesterday, in In line with expectation, weakness persisted though  the level of 5730-5760 provided support. A gap down opening is seen today in the morning amid weak global markets. Market has given a breakdown below 5870 after moving between 5980 and 5870 for four trading sessions. Long positions theoretically should hnce, be avoided, u nless some conditions are fulfilled. Now, from the trading pattern of morning, it seems that the level of 5720-5740 is likely to hold out at the end of the day, as the area provides strong support; though presently it is broken intra-day. In case of Nifty_Future traders for Thursday, June 13, 2013, the trend deciding point works out at 5736, which is broken for the moment on the downside. The the third weekly support stands at 5714 mark. Hence any fall towards the band of 5736-5714 should ideally have been used as a buying opportunity with a stop loss of thirty to forty points below this level (SL stil...

Twist to Cybercity dispute Kochi: In a twist to the Cybercity controversy, a top official of the Housing Development and Infrastructure Limited (HDIL) on Thursday clarified that there was no move to sell the land intended for the mega IT project. “We sought joint promoters for the project. There is no outright sale of the land intended,” K.V. John, the project manager of Cybercity told a private TV channel. The 70 acres of HMT land at Kalamassery was bought by Blue Star Realtors Private Limited, a subsidiary of HDIL, which proposed to invest around Rs2,300 crore to set up a state-of-the-art IT park in 2008. But an advertisement in newspapers recently said that company was putting up the land for sale. The clarification by the top official, in Mumbai, added to the controversy as officials in Kochi refused to confirm it. Meanwhile, Opposition Leader V.S. Achuthanandan threatened to move the court if the company went ahead with the sale plan. “It amounted to cheating...

Glodyne Technoserve Ltd : Annual Report of FY12

IVRCL Ltd : Huge Returns Expected CMP: Rs.18.45 S Ramachandran, Director of IVRCL Ltd Infra player IVRCL currently has an order book of Rs.26,000 crore. However, of the total, orders worth Rs.18,000-20,000 crore are executable, Business Development & Corp Strategy S Ramachandran, Director told CNBC-TV18. The company has been performing well in segments like buildings, irrigation but orders from the transmission line segment are at nascent stage, he informed. Ramachandran is hopeful that the company will perform well in FY14. Further, the company is looking at reducing Rs.1,000 crore debt via stake sale in special purpose vehicles (SPVs) this year, he added. Below is the verbatim transcript of his interview on CNBC-TV18 Q: Could you just walk us through how FY14 is looking in terms of order book visibility and which big projects do you think will come on board and show through for the course of FY14? A: We have an order book of about Rs 26,000 crore b...

HDIL says it will not exit Cybercity project in Koch [ Editor : You can go  Full Hog in IT (Information Technology) counters, as the INR is going to oscillate between Rs.54-57, against the USD for some more time. Indian Rupee (INR) is also expected to depreciate against the Euro.  However, try only those IT companies who have large overseas business; but NOT likes of Rolta Ltd or Tera Software Ltd] The Housing Development and Infrastructure Limited (HDIL) claimed on Thursday that it was not exiting the Cybercity project in Kalamassery despite the company putting out an advertisement on Wednesday for either a joint venture partner or for outright sale of the 70 acres it bought from Hindustan Machine Tools, Bangalore, in 2006. CEO for the Cybercity project, K.V. John, told The Hindu from Mumbai that there appeared to be some confusion over the advertisement and that HDIL was not exiting the project as had been made out in the media. He said that HDIL is rea...

Central Bank of India : Momentum Building Up Central Bank of India, one of the leading Public Sector Banks in the country, has renewed the CBS (core banking solution) agreement with Tata Consultancy Services (TCS). Earlier in June 2005, the bank had given the contract to TCS to implement CBS in over 1,000 branches of CBI. The renewed agreement is the extension of the same contract. Moreover, Central Bank of India has started an exercise to profile its defaulting borrowers. With this initiative, the bank aims at assessing whether the defaulters are cordial to repay their overdue debt or should be proceeded against under the recovery law. The bank has taken this step as its bad loans increased by 16% year-on-year to Rs 8,456 crore as at March-end 2013 Meanwhile, IBM announced recently that Central Bank of India is leveraging IBM analytics to radically transform its financial management processes which includes activities ranging from budgeting to forecasting to liquidity ...

Q4FY13 results of Glodyne Technoserve Ltd

IVRCL Ltd : Long Run Expected Triggers :  (i) IVRCL Ltd said a couple of months back, that it will sell its stakes in three road projects in Tamil Nadu to TRIL Roads Pvt Ltd, a unit of steel-to-salt conglomerate Tata Group. The 154.83 km-long roads are build-operate-transfer (BOT) projects with a total project cost of Rs. 2,200 crore. IVRCL has plans to sell three more assets out of 9 BOT projects within a span of six months. According to my close sources, the process have already started, though some hassles are still to be sorted out (Watch the accompanying Video). IVRCL requires Rs.11bn in the next 3.5 years to invest in BOTs. (ii) According to a press release issued by the company, its Transportation Division bagged orders worth Rs.445.54 crore in May, 2013. The orders include Road and Drain improvement works in Karnataka, construction and upgradation of road in Madhya Pradesh and Construction of roadbed, station buildings and passenger amenities for east coast railw...

Market Mantra In the mid-market newsletter to the Paid Group members, a buy on Housing Development & Infrastructure Limited (HDIL) was reteirated at Rs.42.  HDIl, has taken a decision to sell the 70 acres of‘HMT land’ at Kalamassery, Kerala. HDIL has published advertisements in two newspapers stating that  in Kalamassery is “available for sale/joint venture”. Now the point is that: The HDIL had bought the land parcel for Rs.91 crores in 2006. Now the organization is reportedly trying to sell an acre of land for 8 (eight) crores. So, the total package now comes to around Rs.560 Cr, which is a huge premium to the buy price. The company has debt of around Rs.3700 Cr, which is expected to get reduced substantially, if this land deal goes through. Buy at Rs.42, T--Rs.54, SL--Rs.37.   The IVRCL Ltd today moved to Rs.19.60, before trading now at Rs.19.30. Recently, a brokerage house has given a target of Rs.55 for the scrip. Hence, buy the stock ...

Govt gives nod for Rs 10,000-cr development plan for Mumbai airport By TBM Staff | Mumbai Chhatrapati Shivaji International Airport The Maharashtra government has given approval to the development plan for Chhatrapati Shivaji International Airport (CSIA), Mumbai. The gazette notification for the interim development plan, which was to be implemented between 2010 and 2013, was issued last week. The project is estimated to cost Rs 10,000 crore and includes development of terminals, airside and part of landside, Clara Lewis reported in The Times of India. The plan does not include drains, metro, etc. "Maintenance, augmentation, development of city-level infrastructure networks and services, and related future projects within CSIA-notified area need to be funded by local authorities, the state government and private agencies,'' the plan states. Only slums spread over 104 acres on the Eastern side will be shifted for expansion of the aeronautical area. This a...

HDIL to sell land in Kochi to mobilse funds ~~K Raghavendra Kamath/Mumbai 05 Jun 13 HDIL, which was recently in news for Mumbai airport scrapping its slum rehabilitation project, is looking to sell 70 acres of land in Kochi in Kerala to mobilise resources. In February 2011, HDIL announced that it will build a mixed use project Cybercity at Kalamassery special economic zone at an investment of Rs 2,300 crore. The project would have a built up area of 10 million square feet. HDIL has been selling development rights and land parcels to reduce its debt and fund projects and it is a part of company's strategy to mobilise funds, said an analyst. "HDIL is looking for prospective buyers/Joint Venture partner for land at Kalamassery, Kochi, Kerala," the company said in a release. HDIL stock was trading at Rs 41.45, down 0.84% from previous close. Courtesy : Smart Investor

HDIL : Early Signs of Temporary Bottom Formation Triggers : (i) Considering the current fall  in the price of the share to some abnormal levels, the management might look at the option of "Buy Back" of shares from the open market. According to the sources, the company could take up the issue, in the next board meeting.  (ii) RBI is expected to come up with a CRR cut in the next policy meet, which is likely to give a sentimental boost to all the scrips in this sector.  (iii) HDIL has huge land area in the Mumbai Metropolitan area, which is likely to add value to the shares of the company, going forward. (iv) The company has approached the courts, regarding,  Mumbai International Airport Limited (MIAL), issue. HDIL has several projects to generate the TDR, and the airport project was one of them. It has about 1 million square feet of TDR which is left and which will be sold. As such the ongoing projects which were part of the airport scheme would not get a...