SumanSpeaks: The Information Super Highway

ARVIND KEJRIWAL and his TUGHLAK-ISM Who will pay the SUBSIDIES for the RICH? The POOR TAX PAYERS...?  Two listed private distribution utilities, Tata Power and Reliance Infrastructure, supply power in the capital city, Delhi. R-Infra has management control of BSES Rajdhani Power and BSES Yamuna Power. These distribution entities say it is tough to decrease retail power rates. “The cost of power in Delhi has increased by 300 per cent since 2002, while the retail rate has increased by (only) 65-70 per cent. This has created a huge financial burden for all the private discoms in the city,” said a distributor who refused to be named. Apart from other impacts, experts feel power rates could be reduced over time by reducing power procurement costs. “The cost of power production has gone up tremendously in the last 2-3 years. It is likely that the power regulatory commission will hike the tariff in the state. However, to give relief to the common people, we have decide...

Cabinet to decide over Arunachal and Sikkim hydro power projects in next meeting According to Economic Times, the government is working out a plan to restructure the loans, extend repayment deadlines by three years and waive penalties of POWER COMPANIES.  New Delhi: Government’s concerns over growth are visibly growing. Cabinet Committee on Investment (CCI) at its next meeting may take up three hydro power projects that have been held up on account of environmental and forest clearances. The three hydel projects – Tawang (800 MW) and Tato (700 MW) and Teesta (520 MW) – have been awaiting environmental clearances for a very long time. ‘These projects in Arunachal Pradesh (Tawang and Tato) and (Teesta) Sikkim have been sent to CCI from the Power Ministry for clearance’, a source told PTI. He said the CCI may take up the proposals at its next meeting but did not specify a date for that. Teesta Stage-IV Hydroelectric Project is a run of the river scheme proposed al...

2nd unit of Sasan UMPP of Reliance Power begins generation December 13, 2013: Anil Ambani owned Reliance Power on Friday announced that the second 660 MW unit of the 3,960 MW Sasan Ultra Mega Power Project (UMPP) has commenced power generation. In a statement issued in New Delhi, it said the unit has commenced power generation in shortest time of just about a month from boiler light up. This was made possible by adopting innovative commissioning methods. Balance four units are in advanced stages of construction and will be commissioned over the next few months.  The Sasan UMPP is the largest integrated power plant and coal mining project in the world. Coal production has already commenced from the 20 million tonnes Moher and Moher-Amlohri coal mines associated with the power project. With this unit, Reliance Power’s generation capacity has increased to 3,205 MW which includes 3,120 MW of thermal capacity and 85 MW of renewable energy based capacity . Courtesy : ...

WINNING STROKES : THINK DIFFERENT As expected the Nifty took the support in 6270-6280 ranges and closed above 6300. The markets looks to be in control of the Bulls, but the act ion will be shifted to stock specific counters.  FIIs today, i.e. on 31-Dec-2013 were net buyers to the tune of Rs.309.7 Cr. Today Rolta Ltd touched Rs.67.85 before closing above the support of Rs.67. 20, on the NSE confirming the end of the downturn. The scrip fell from around Rs.380, to the current price of around Rs.67.20. The company's CMD said, that it has started to get dividends from the investments during the last 5 years. It is only time that the scrip would give stupendous returns. The company's Financial Year starts from September, 2013 and hence any loss in the June, 2013 quarter will have no impact on the FY14 balance sheet. Moreover that was an one time loss, which was shown as an exceptional item in the P&L account. The investors are suggested to buy the scrip on every decline...

Reliance Power may gain as UMPP concerns ease  Mumbai, 27 Dec, 2013: Shares of Reliance Power today rose by nearly 3 per cent on the possibility of CBI closing its preliminary enquiry to probe coal block allocation to a power project in Sasan in Madhya Pradesh run by Anil Ambani's firm. The CBI is of the view that the allocation is a policy decision vetted by group of ministers. CBI sources said it has come to light that use of surplus coal from the Sasan UMPP was approved on two separate occasions by two EGoMs. They said since it was a policy decision, CBI was not likely to question it. However, they added that any final decision has not been taken over the closure and any such decision can only be taken after taking into consideration the views of the Supreme Court. The sources said they have informed the Supreme Court about the preliminary enquiry in their status report and agency would proceed according to further directions of the apex court. After th...

Market Mantra Nifty is continuously getting support around 6270-6280 ranges during the day. It is to be noted that the Nifty has settled 187 points higher in December, expiry. The uptrend remains intact and long positions could be HELD.  Resistance :  6310 / 6350 Support:  6270 / 6220 Today's Call :  Buy Reliance Power Ltd at Rs.73.10, T-Rs.81, SL--Rs.69. The CBI has closed its preliminary enquiry into the alleged irregularities in coal block allocation for the company's ultra mega power project in Sasan, Madhya Pradesh. Moreover, the government may separate forest clearance for coal block from the environment nod to the overall project to speed up Odisha ultra mega power project. CLICK HERE .  Those who have bought Rolta India Ltd yesterday at around Rs.17--17.30, should consider buying more of th e scrip on every decline. It will give super and steady returns over a period.  Centre plans to allow FDI in e-commerce before Marc...

Rolta India Ltd : Interview with Mr.K K Singh KK Singh, CMD, Rolta India, says the rationale behind hiking promoter stake holding is on account of the condition that defence sector companies need to have atleast 50 percent promoter stakeholding to be able to participate in manufacturing and in defense make India programmes. Mr.Singh, further said the company has plans to up promoter holding by another 5% next year.  Rolta India Ltd promoters gained majority control in the company by hiking their stake from 40 percent to over 50 percent over the last three years through creeping acquisitions. KK Singh, CMD, Rolta India, says this year the promoter holding was raised by 4 percent. He adds the promoters still have the leeway to hike it by another 1 percent this year itself, as per Sebi guidelines. Going forward, the promoters will up their stake by another 5 percent next year in the company, he says.  Singh says the rationale behind hiking promoter stake holding is on ...

Rolta India Ltd's Achievements [ Editor : Rolta India Ltd's  consolidated net profit rose 11.1% to Rs.70.26 crore on 33.5% growth in revenue to Rs.627.77 crore in Q1 September 2013 over Q1 September 2012. This gave an EPS of Rs.4.40 (consolidated), in the 1st quarter of Q1FY14. In the full year, FY14, Rolta Ltd is expected to clock an EPS of Rs.11-12. Buy the scrip at Rs.67.20, for a target of Rs.92, in the short term] MUMBAI, India, December 2, 2013: Rolta OneView™ has been positioned by NASSCOM/Frost & Sullivan in the top right "Exemplars" quadrant in their Product Excellence Matrix ("PEM") for Analytics products in their report published in November 2013. NASSCOM, in partnership with Frost & Sullivan ("F&S"), has rolled out the PEM initiative to benchmark Indian software products across defined categories. NASSCOM defines Exemplars as: "…vendors that have a well-defined growth strategy and successful execution plan....

WINNING STROKES : THINK DIFFERENT Shree Ganesh Jewellery House (I) Ltd hit another buyer Freeze in the opening trade. The scrip was recommended to the Paid Groups some days back. The Book Value of the shares of the company is a whooping Rs.226.03.  Essar Port Ltd today touched Rs.63, however, it came down after profit booking was suggested in the counter to the Premium Group members, due to certain reasons (to know the reasons you need to join the Premium Services). The scrip was recommended around Rs.56.70, last week.  Today, a buy call was initiated on Rolta India Ltd at Rs.67-67.30, for a target of Rs.75-77. The company came out with good set of numbers for the September, 2013 quarter, which incidentally is the 1st quarter of the company, for FY14. In September, 2013 quarter, the net profit of the company came out as Rs.70.26 Cr, which gave an EPS of Rs.4.40. However, the company closed the FY13, in June, 2013 quarter, with a loss. Hence any loss in that last qu...

Country Club India Ltd : Looking to Break Out CMP: Rs.8.95 Country Club India Ltd is one of the fastest growing entertainment and leisure conglomerate in India. A Multi-Million dollar entity and a listed company on BSE (Bombay Stock Exchange), Country Club India Ltd is a pioneer in the concept of family clubbing in the country. Country Club India Ltd has established 205 properties of which over 55 are owned and 175 are franchised properties plus a global gateway via Country Vacations and RCI affiliation of 4000 resorts for its esteemed members.  Country Club India Ltd's very first leisure infrastructure project is Country Club Coconut Grove which is over much 100 acre and a completely eco friendly project near Tumkur in Bangalore. The multi-million project is the resultant outcome of vibrant synergy between core expertise of the founding organization Amrutha Estates and innovative vision of participatory clubbing that hinges on community living and holiday homes with club...

Coal India sticks to import plan [ Editor : Good news for the shareholders of MMTC (Face Value: Re.1, CMP: Rs.52.90) and State Trading Corporation Ltd (Face Value: Rs.10, CMP:Rs.172). If we go by the logic the STC should be trading near the price of MMTC which comes around Rs.520, considering Rs.10 as Face Value] Calcutta, Dec. 29: Coal India will issue another tender for import after the first one floated on November 15 failed to attract a single participant. A senior official of Coal India said the state-run miner had not scrapped the idea of importing for domestic consumers after the disappointing outcome of the first tender. “We have not scrapped the idea. The tender will be floated once again shortly,” said the official, adding that the process is likely to be initiated within a month. Coal India’s first tender was worth Rs 3,000 crore for importing 5 million tonnes. The imported coal was aimed to bridge the demand-supply gap. Domestic demand is over 600 ...

State Trading Corporation of India Ltd ( Rs.170.50 ): Will the scrip be able to touch Rs.400 ? [ Editor : Pramod Mittal’s Ispat group owes over Rs.630 crore to the State Trading Corporation (STC) which the latter is now trying to recover from JSW Steel of the Sajjan Jindal group (which acquired the beleaguered Ispat Industries in 2010. This is positive for the STC India Ltd, as the company is pretty SURE of recovering this FUND, since Sajjan Jindal Group, unlike the, Ispat Group, has GOOD REPUTATION in the markets. CLICK HERE . Moreover STC India Ltd has an equity of only Rs.60 Cr and about 90% of  its shares are held by the government of India. Public holding is only 10% of which Institutions hold 2.12%.. Besides, the Hindu Business Line on October 3, 2013 writes: The logic goes like this. The Indian lust for gold has caused a tsunami of gold imports. That has dented India’s current account with a huge hole. The current account deficit has brought the rupee to its knees...

Raj Thackeray says JNPT expansion delays helping Gujarat Mumbai, Dec 26 2013.: The Raj Thackeray-led political party in Maharashtra has alleged that the country’s largest container port, Jawaharlal Nehru Port Trust (JNPT), near Mumbai, has been deliberately delaying its expansion plan to help ports of Gujarat by diverting cargoes of Mumbai to the neighbouring state. In a letter dated 26 November to JNPT’s chairman, Thackeray, president of Maharashtra Navnirman Sena (MNS), said the port volumes have become stagnant for six years and are now shrinking while cargoes are increasing for Gujarat ports. Mint had reviewed the letter. Maharashtra is ruled by the Congress party while Gujarat is ruled by Narendra Modi, the Bharatiya Janata Party’s prime ministerial candidate and also chairman of the Gujarat Maritime Board (GMB) that focuses on port sector. JNPT handles nearly 50% of container traffic in the country. Though the letter was written a month back, MNS release...

WINNING STROKES : THINK DIFFERENT Shree Ganesh Jewellery House (I) Ltd (BSE Code: 533180), recommended today to the Premium Members and also to those who are trading through my recommended BROKERAGE  HOUSE, hit the buyer freeze.  The stock is moving towards Rs.31-32 in the coming days. Today it got locked in the Upper Circuits at Rs.25.65.  According to the media reports nearly 81% of the company’s revenue was derived from exports in 2012-13 and 98 per cent of its raw materials were imported, creating a hedge. Since exports exceeded imports, a weakening rupee tended to benefit the company’s margins. Meanwhile,  Shree Ganesh Jewellery House (I) Ltd has approached State Bank of India (SBI) for referring its debt to the corporate debt restructuring (CDR) cell. SBI is the lead bank in a consortium of its lenders. SBI had a meeting with the other members of the consortium last week to discuss Shree Ganesh’s proposal.  Under CDR, banks typically increase the re...

Essar Group Chairman Shashi Ruia meets Jayalalithaa Essar Group chairman Shashi Ruia is said to have very good relations with the BJP Prime Ministerial aspirant, Mr.Narendra Modi. Ruia has been a vocal supporter of the CM of Gujarat, and has accompanied him on at-least half a dozen foreign tours in the past few years, most notably to Switzerland, South Korea and China in 2007 and Russia in 2009. Chennai, Dec 04 2013: Essar Group Chairman Shashi Ruia called on Tamil Nadu Chief Minister Jayalalithaa here. "The meeting was a courtesy call," official sources said. Essar Group has operations in more than 25 countries and employs over 73,000 people, the company website said. Institute of Customer Experience Management, promoted by Aegis, is a wholly owned subsidiary of Essar Group. It has a facility spread across 40,000 sq ft on Amankullam Road in Coimbatore in Tamil Nadu. Earlier this year, Finance Minister P Chidambaram laid the foundation stone of Aegis Lt...

Essar Ports to invest Rs.1,200 cr in Vizag port [Vishakhapatnam port handled 12.3 mt of iron ore in financial year 2013. Moreover, in the past couple of weeks we have seen an explosion in many of the shipping related stocks in several of the world markets. The dry bulk index has shot higher and is up over 100% in the past several months, and investors have been piling into shipping stocks] December 14, 2013: Essar Vizag Terminals, a wholly owned subsidiary of Essar ports, has entered into an agreement with the Visakhapatnam Port Trust for development and operation of three iron ore berths. The company will invest Rs 1,200 crore in the project, to be developed on a build-own-operate basis over 30 years.,center> The three berths (two outer harbour berths and one inner) will have a combined capacity of 23 million tonnes a year (mtpa). The concession agreement was signed at a ceremony here in the presence of G K Vasan, the shipping minister. Essar Ports will take over ...

'Buy' rating on Thermax Ltd, target price Rs 850 : Motilal Oswal [Essar Refinery is the first in India and among a few in Asia to set up coal fired boilers for steam and power requirements. This is expected to result in increasing the refining margins by ~$1 per barrel......this success can be an important trend setter, particularly in the refinery and petchem segment] We maintain our ‘buy’ rating on Thermax Ltd with an 18-month price target of R850 per share (20x FY16e at R762 per share and R86 per share in subsidiaries). At the current market price of Rs 690, the stock trades at price-to-earnings (P/E) of 27.3x FY14e, 23.4x FY15e and 17.5x FY16e. Our top picks in capital goods segment are Larsen & Toubro, Thermax, Cummins. We recently upgraded Bharat Heavy Electricals Ltd (BHEL) to ‘buy’ and believe the risk-reward is favourable. Coal-fired boilers installed by Thermax at Essar Oil’s refinery have completed one year of working at rated conditions. This is an impor...

Essar Port Ltd : Breaking out of its current trends Essar Ports Limited (EPL) develops and operates ports and terminals and is one of the largest private sector port companies in India by capacity and throughput.  Essar Ports is part of the multinational Essar Group, and holds the Group's entire ports business.  Essar Ports develops and operates ports and terminals for handling liquid, dry bulk, break bulk and general cargo, with an existing aggregate capacity of 104 MTPA across two facilities located at Vadinar and Hazira in the state of Gujarat on the west coast of India and one iron ore terminal at Paradip in the state of Orissa on the east coast of India. The facilities at Vadinar and Hazira are used primarily by affiliated customers for the receipt of raw materials such as crude oil, iron ore / pellets, limestone, dolomite and coal, and for the despatch of finished goods such as petroleum products and steel products. Financials :   H1 FY14 N...

Essar Oil Ltd : Breaks Out CMP : Rs.52.20 Essar Oil is a fully integrated oil and gas company of international scale with strong presence across the hydrocarbon value chain from exploration and production to refining and oil retail. Essar Oil said it will allot 3.88 crore equity shares at Rs.138 per share on conversion of 1,150 foreign currency convertible bonds (FCCBs) of $100,000 each aggregating to $115 million which were issued on 15 June 2010 to Essar Energy Holdings. The company will also allot 4.50 crore equity shares at Rs.153 per share on conversion of 1,470 FCCBs of $100,000 each aggregating to $147 million which were issued on 9 July 2010 to Essar Energy Holdings. The promoter group company Essar Energy Holdings held 19.83% stake in Essar Oil (as per the shareholding pattern as on 30 September 2013). Lalit Kumar Gupta, chief executive officer, Essar Oil Ltd, in a very recent interview with a Business Channel, says the company’s promoters are converting t...