Western India Shipyard Ltd: Few Points

Western India Shipyard Ltd came out with Q4FY14 results in this month. Sales declined 44.00% to Rs.5.46 crore in the quarter ended March 2014 as against Rs.9.75 crore during the previous quarter ended March 2013. But the total income of the company was marginally higher in the March, 2014 quarter as compared to December, 2014 Quarter (Rs.5.29 Cr); showing gradual improvements in the company's fundamentals.  

Net Loss of Western India Shipyard mounted to Rs 12.12 crore in the quarter ended March 2014 as against net loss of Rs.9.64 crore during the previous quarter ended March 2013. However, if we observe carefully the March, 2014 results we will find that  much of the loss was due to three components basically: 

• Hire Charges---Machinery (Rs.5.13 Cr Vs Rs..98 lakhs)
• Bad debts (Rs.4.25 Cr Vs NIL)
• Interest and other costs (Rs.1.05 Vs Rs.10.06 lakhs)

If we take these factors into consideration, then we would find that the Q4FY14 results of the company are much better than it looks apparently and hence the market is giving a thumbs up to the share price. 

Now coming to the statistics again: On a full year basis, net loss reported to be Rs.26.90 crore in the year ended March 2014 as against net loss of Rs.9.82 crore during the previous year ended March 2013. Sales declined 46.14% to Rs 38.78 crore in the year ended March 2014 as against Rs.72.00 crore during the previous year ended March 2013.

It must be remembered that FY13 and FY14 saw restrictions by the State & Central Government and the Apex Court on mining operations in Goa. This affected the Iron Ore Mining Industry in Goa which came to a complete halt and affected the transport operations of barges and transhippers. There was also a reduction in vessels seeking ship repairs at Mormugao due to recession in shipping and outbound cargo. The number of vessels visiting the Port therefore decreased during the year. 

However, in a recent judgement, the honourbale Supreme Court of India allowed mining in the state with several riders, leaving it for the Goa state government to resume mining. While lifting the mining ban, the Supreme Court had observed that mining concessions became leases of leasees in Goa on November 22, 1987 and with the 20-year maximum renewal period had also come to an end on November 22, 2007.

The experts have already started to raise huge and cry to expedite the processes for resuming mining in the state as several lakhs of youth are jobless after closure of the industry almost two years ago. Moreover, there was also severe recession in the Shipping Industry with fleet owners deferring the ship-repair business, which put pressures on the company's bottomline. But the global shipping sector is expected to move up from July-August, 2014. 

The Global Shipbuilding and Ship repair Industry is growing at a compounded annual growth rate (CAGR) of about 24% and is likely to reach Rs. 14 lakh crore by 2015 owing to rising global sea borne trade. Against this, the Indian Shipbuilding and Ship repair industry is growing at a CAGR of about 8% and is likely to reach Rs.9,200 crore from the current level of just over Rs.7,310 crore [Source: ASSOCHAM Study Report].

The Central Government has in FY13 encouraged about 35 registered Ship-repair Units with incentives and concessions like exemptions from customs and central excise duty in view of the huge potential of the Ship-repair Industry which offer ship-repair and maintenance services to Indian and foreign vessels and oil rigs along the east and west coast of India. With the new government in place in India, we could look forward for similar moves in FY15. 

The Indian Shipping Industry continues to be the world's most efficient and cheapest means of transportation along 7517 km of coastline with about 200 ports spread over the east and west coast of India. About 95% of  India's trade by volume and 70% by value are transported by sea. The Baltic Dry Index (BDI) which is a leading indicator of global shipping economic activity shows the nominal rise in the daily weighted average of prices for shipping bulk dry cargo such as iron ore, coal and grain for smaller size vessels namely, Handymax, Supramax & Panamax. During the year, the BDI fell by about 22% to 910 points as on 31.03.2013 showing a recession in the Shipping Industry. 

Conclusion: Bad debts as discussed earlier represents an account of Settlement made with ONC as per Arbitration Award. This issue will not be there in Q1FY15. The management is hopeful of better results in FY15, because of a turnaround in the shipping sector and also, the new government could bring in some rationalisation in the mining sector. The share price of the company is expected to double from the current price of Rs.2.40. 

IVRCL Ltd (Rs.25. 07): Updates

According to Economic Times, 31st May, 2014, the Hyderabad based infrastructure company IVRCL Ltd is planning to raise up to Rs.300 crore in two tranches to fund projects during 2014-15. The company's board, which met on Friday to review its financial results for the fourth quarter and 2013-14, has approved the proposal to raise this amount. 

The money will be raised through either a Rights Issue, Preferential Allotment or Institutional Placement. IVRCL Ltd's consolidated loss widened to Rs.853 crore in 2013-14 from Rs.240 crore, in the previous fiscal. 

During this period its turnover grew by 10% to Rs.4,945 crore from Rs 4,495 crore in 2012-13. For the fourth quarter ended March 2014, the company's standalone turnover was at Rs .1,217 crore, against last year's Rs.1,494 crore and loss stood at Rs.28 crore, against last year's net profit of Rs 23 crore 

Faced with tough business environment including high interest rate regime, which has impacted the overall pace of project execution and profitability of the company, IVRCL has approached the Corporate Debt Restructure Cell on January 20, 2014.

The company has stated, while declaring the Q4FY14 results, that though it invested Rs.66 crore in its subsidiary Hindustan-Dorr Oliver Limited, but its net worth has substantially eroded. However, it expects to implement business plan and improve its future operations.

According to the Hindu Business Line of May 30, 2014, IVRCL had entered into agreements on March 30, 2013 with a strategic partner (TRIL, a Tata group entity) for divestment of 74% stake in BOT projects relating to Salem Tollways Limited, Kumarapalayam Tollways Limited and IVRCL Chengapalli Tollways Limited as a composite agreement, subject to approvals for all the projects from NHAI and the lenders. Pending approvals from the lenders, the investments in these projects are considered as long term investments.Based on expected cash flow, no provision was considered necessary to carrying value for investments.

Important
Live Mint, 30 May, 2014 writes:

• Nitin Jairam Gadkari has been named India’s new shipping minister in the Narendra Modi-led National Democratic Alliance (NDA) government that assumed office on 26 May. Gadkari, a member of the Bharatiya Janata Party (BJP) that won a simple majority on its own in the just-concluded general elections, is also India’s minister for road transport and highways—Prime Minister Modi merged the erstwhile ministries of shipping and road transport and highways into a single ministry. 
• Gadkari, 58, is no novice to transport sector. He was the public works department (PWD) and ports minister for Maharashtra between 1995 and 1999 during which he demonstrated a penchant for building a series of roads, highways and flyovers in Maharashtra.
• Gadkari’s anointment as the minister for shipping, road transport and highways breaks the stranglehold over this ministry by lawmakers from Tamil Nadu on India’s eastern coast for a decade. The last two ministers spearheading this sector—T.R. Baalu and G.K. Vasan—hailed from Tamil Nadu and most of their focus was skewed in favour of their home state, which has a sizeable coastline. 
• Gadkari comes from Maharashtra on India’s western coast which too has a fairly large coastline.
• Gadkari has his task cut out. In the ports sector, there are several issues that await him, the most important among them being tariff reforms, restructuring the 12 ports owned by Indian government into corporate entities from a trustee set-up, development of coastal shipping and inland water transport, road linkages to ports and allowing Indian fleet owners to register their ships overseas.

Now this particular issue raises the expectation from the companies, which are into Roads & Highways, Shipping  & Ports, eg. IVRCL Ltd (Rs.25.07), Marg Ltd (Rs.19.75), IRB Infrastructure Ltd (Rs.197.05), HCC Ltd (Rs.33.80), Western India Shipyard Ltd (Rs.2.40), etc. 

All these shares were recommended by me at much lower levels and the investors, already made lot of money from them. 

Marg Ltd  (Rs.19.75): Will Slowly Move towards Rs.89-90

Book Value: Rs.180.91

Market Cap: Rs.75.28 Crore only

MARG Limited (formerly MARG Constructions Ltd) is one of the leading Infrastructure & Real estate Company in south India. MARG was awarded with the prestigious "Excellence in Infrastructure" award at the Construction Industry Awards 2012, Chennai. MARG is focused on achieving holistic regional development, unlocking economic prosperity and creating inclusive & sustainable growth models. 

The Company, by itself and through its subsidiaries, is undertaking the development and operation of infrastructure projects in the areas of marine infrastructure, urban and industrial infrastructure, thereby pioneering the development of economic growth centers. It owns and operates a port at Karaikal, Puducherry with handling capacity of 28 MTPA and is also developing a 612 acre special economic zone (SEZ), as a part of MARG Swarnabhoomi - 'The Land of New Thinking' on the scenic East Coast Road between Chennai and Puducherry. 
MARG’s EPC division provides integrated turnkey solutions by offering a plethora of services including integrated design, engineering, material procurement, field services and construction & project management services for infrastructure sector and real estate projects for its various subsidiaries as well as external customers. The Company also offers quality residential spaces, predominantly catering to the mid segment and affordable segment categories and commercial spaces as developing a multi-use commercial building, in the heart of Chennai's IT corridor, comprising retail space (mall & multiplex), office space, hotel and service apartments. Besides this, the Company is developing and executing various commercial & residential projects in other states, which have gained momentum in recent years.

Positives  

Though concerns continue to exist over the current account deficit scenario, prevailing supply side constraints, inadequate infrastructure investments and long term policy directions, but with INR appreciating against the USD and the newly elected NDA Government likely to give greater impetus to infrastructure development and planning (to double investments in the infrastructure sector, over the period of next five years), is expected to give a major boost to the construction and infrastructure activities. The NDA Government is focused to make major amendments to land acquisition laws, which is hoped to accelerate the process of Land acquisitions.

EPC VERTICAL

The FY12-13 was a challenging phase and emerged as a year of consolidation for project execution and other business aspects. It has an unexecuted EPC order book is at Rs.3,800 Crores as of March 2013 constituted by 19% for Group assets like Port, Mall and others and 81% for external customers including 45% for civil work for group’s projects for residential and external customers and 36% for Government, PSU and other Corporate EPC customers. It is participating in fresh tenders in FY15. 

MARG EPC division has signed agreement with Momentum Group, an Irish-registered Company established in 1983 with its headquarters in Dubai, which qualifies MARG to foray into off and on-shore oil & gas sector. The Momentum Group actively markets well drilling and program engineering services providing total drilling operations management for jack-up, land drilling and pipeline projects all over the world. Some of their most recent projects and services being in the Caspian region (Azerbaijan, Russia, Turkmenistan), Far East (Malaysia), Middle East (UAE, Iraq, Kuwait), Turkey and North Africa (Egypt).

MARG is in the process of building a healthy pipeline of additional EPC contracts - bidding for mega contracts in the specialized areas like marine, industrial projects, urban infrastructure and solar & alternate energy sector.

Apart from this, recent approvals obtained for residential projects, infusion of funds into MARG Junction; Launch of Service Apartments will increase the EPC division’s turnover from MARG in the forthcoming years.

The EPC division which was catering to the need of in-house and external projects has successfully handed over Pushpadrum Residential Project and is in the process of handing over its other residential project MARG Vishwashakthi at Tirupathi. Twin Disk project is completed and full-fledged development of MARG Institute of Technology Science is being done in Swarnabhoomi. 

On completion of Berths & allied Infrastructure, Edible Oil & Molasses Tank farms, Marine Loading & Unloading arms, Truck loading system execution is now focused and is nearing completion on construction of break waters, Stacker Cum Reclaimer, Wagon Loading System, Ship Unloaders and Conveying System in Karaikal Port. 

The external project team has completed wagon fabrication work for Braithwaite Company Limited, Jhansi I & II for Northern Central Railways. Multi Storied Residential project for BHEL is completed & Residential project for HUDA in Rewari, Haryana, as well as 200 bedded Cardiothoracic Hospital for Military Engineering Services is nearing completion in Northern Region.

MARG EPC has been appreciated for safety practices, a notable achievement as the present accident frequency across all project sites is 0.25, as per Indian Standard: 3786-1983.

Some of the prestigious projects include construction of head quarters for Bureau of Police Research & Development (BPR&D), National Crime Records Bureau (NCRB) and allied works at Mahipalpur, New Delhi from NBCC. Other projects include medium format assignments like construction of a school and miscellaneous city beautification work at Mahe, awarded by Government of Puducherry and Construction of Facilities for Research in Experimental Nuclear Astrophysics (FRENA) laboratories for Dept. of Atomic Energy, at Kolkata. 

Port

Karaikal Port – a deep draft, all weather port is owned and operated by Karaikal Port Private Limited - a subsidiary of MARG Limited. The Port is now in the fifth successful year of operations. The Port has handled 6.61 MMT of cargo in Financial Year 2013 as against 6.01 MMT in Financial Year 2012, which is a straight 9.98% increase. Revenue for the Financial Year 2013 went up by 25.14%, from Rs.221.35 crores to Rs.277 Crores. EBIDTA for the Financial Year Rs.2013 is Rs.133 Crores and Rs.100 crores for Financial Year 2012, recording a rise of 33%. 

During FY13, it handled 1,231 rakes as against 1,087 rakes handled in FY12. A total of 3,090 rakes have been handled since the commencement of railway operations. The company has entered into contracts with many major cement companies like Chettinad Cement, Dalmia Cement, Madras Cements and The India Cements for handling their coal imports. 

Karaikal Port added new cargos to the portfolio like Fire clay, Lime Stone, Iron Ore, Wheat and Maize and efforts will continue to bring in additional cargos to the port. With the iron ore mining ban in Karnataka, JSW has started importing domestic iron ore in the forms of fines and lumps for its Mecheri Plant through Karaikal Port. The cargo is expected to continue through the next year as well. 

With the UPA government’s decision to export the surplus  wheat, it has contributed a total volume of 172,000 MT in FY13 and significant volumes is likely to flow in this year (FY15) as well. Maize is another significant addition to the cargo portfolio in the recent times and is expected to add traffic to the port in FY15 too.
Terminalisation opportunities are being explored for Coal Terminal, Liquid cum General Cargo Terminal, LNG Terminal and Container Terminal. Port has created lot of interest among national and international bulk cargo traders.

SEZ

MARG is developing two special economic zones in the field of Engineering Services and Multi Services spread over 612 acres as part of ‘MARG Swarnabhoomi – The Land of New Thinking’.  This Project is developed by New Chennai Township Private Limited, a wholly owned subsidiary. 
MARG Swarnabhoomi is located on the scenic East Coast Road, midway between Chennai and Puducherry.

Engineering Services SEZ is promoted at MARG Swarnabhoomi with the objective of attracting clients in various segments like Auto Components, Fasteners, Valves, Pumps, Power components, Electronic components, Electronic meters, Renewable Energy, etc. M/s Grundfos Pumps, M/s Virgo Engineers, M/s P.H. Hydraulics and Pneumatics, M/s Eswari Electricals, M/s Kwik patch Ltd and M/s Twin Disc (Far East) Pte Ltd are operating in Engineering services SEZ. M/s Tecpro Energy Systems has registered lease deed and is in advanced stages of setting up their premises in MARG Swarnabhoomi. 

Total exports from the engineering SEZ in FY-12-13 was Rs.52.69 Crores The Multi Services SEZ is promoted in MARG Swarnabhoomi to attract clients in various segments like IT/ITES, Knowledge Hub, BPO, KPO, Animation, Medical Tourism, R&D, Publishing etc. 

M/s Biophenolika Polymers Private Limited, an Indian unit of Italian firm Cimteclab, a research and development company with international manufacturing facilities specialized in the field of high performance polymers, biopolymers, protective coatings, and flame retardants have signed an agreement to set up their premises at the Multi Services SEZ. 
Swarnabhoomi Academy of Music (SAM) is the first professional college of music in India offering a range of programs in contemporary music that includes rock, jazz, classical and world music. The students from 6 countries have been in enrolled in SAM. SAM has signed the Initial twining partner agreement with McNally Smith an international music school based out of Minnesota. SAM is also awaiting the international experience agreement from McNally. The construction of the Science & Technology Park with world class amenities is in full swing and 80% of the project is completed.

On the education front, ‘Swarnabhoomi Academic Institutions’ (SAI) is functioning in MARG Swarnabhoomi. The Knowledge based ecosystem is a unique differentiator for MARG Swarnabhoomi wherein it houses institutions catering to basic education, higher education and vocational skills training institutes. 

MARG Navjyothi Vidyalaya School is operational in Swarnabhoomi with a count of 400 students. The school is affiliated with CBSE and fully equipped with Audio/Science and Math lab and offers courses up to 10th Std. 
MARG Institute of Design and Architecture Studies (MIDAS) operating in Swarnabhoomi offers two-five year undergraduate programs - Bachelor of Architecture and Bachelor of Architecture Interior Design and is affiliated to Anna University. 80 students have enrolled in the course offered by MIDAS in 2012-13. MOU with Central Institute of Technology, Australia and ITEES, Singapore is signed for multidisciplinary vocational and and hospitality programs respectively. 

As part of 300 acres Educity- new institutions and programs will be introduced by 2014-15, which include a Management College, an AICTE approved engineering College and an Arts and Science degree college.

Real Estate Development

MARG ProperTies – residential arm of MARG, since its inception from October 2009 has emerged as one of the leading real estate developers in Chennai. MARG’s residential development is moving forward as lot of infrastructure growth is happening in Tamilnadu and the company has a strong presence in Chennai where there is a huge demand for residential space.

To cater to the housing demand and leverage the economic growth drivers, the company has a strong project pipeline and land bank near the suburban micro-markets. The company’s project portfolio is primarily skewed towards mid and low income segment which forms the bulk of the residential demand.

As the South & West Chennai is getting developed rapidly, MARG ProperTies projects which are located in these areas are benefitted more. Second phase of Nemmeli Desalination Plant and the proposed Country’s longest elevated corridor (45km) in OMR augurs well for South Chennai residents. The upcoming industrial parks and the proposal of doubling the Sriperumbudur – Guduvanchery rail line adds spur to the West Chennai residents. Planned satellite cities, improved connectivity and social infrastructure will further drive growth.

MARG ProperTies has further created an avenue to get closer to its customers through ProperTies Shoppe at Kottivakkam, OMR and Ashok Nagar. It is the first of its kind in the real estate industry to create more touch points and offer the company’s wide range of products to customers through experience and consultative selling. Interactive touch screen kiosk is another unique innovation from MARG ProperTies to touch base with its customers.

In FY2012-13 MARG ProperTies registered residential sales of 0.39 million sq ft (369 units) at a sale value of Rs.132 Crores, total sales (ITD) till March 2013 was 1966 units (2.12 million sq ft) at sales value of Rs.552 Crores.

With the revival of the Indian economy, the real estate sector is booming. Families are shrinking and relocating to cities, creating a demand for urban residential space. As per CMDA estimate, the demand for housing in Chennai is estimated to be at 4.0 lakhs in 2011 and it is expected to reach 6.6 lakhs by 2016. 
To capitalize the residential demand and with a clear understanding of the real estate business backed by scale, people, process and technology coupled with innovation, MARG ProperTies is poised to garner a large market share across a wide product range. 

Real Estate – Retail & Commercial, MARG Junction, a 1.8 million sqft. integrated mixed use commercial project comprising of a mall (6.76 lacs sqft), Serviced Apartments (2 towers - 3.2 lacs sqft with 295 keys) and Club (50,000 sq.ft) is being developed by the company’s subsidiary, Riverside Infrastructure (India) Private Limited (RIPL).

As on 31st March 2013 around 267,705 sq.ft of mall space has been leased and received EOI’s from brands for around 119,803 sqft. Over 57%(both signed & EOI’s) of the Gross Leasable Area (GLA) is now finalized, Apart from the anchors signed in FY10-11, EOI’s were obtained from key mini-anchor brands like Blu-O, Time zone, Reliance Trends & Reliance Digital during the year, Top Vanilla brands like Levis, Titan, Nike, Puma, Lee, Wrangler were signed. The average rental achieved of Signed & EOI agreements as on 31st March 2013 is Rs.76/- psft p.m.The hotel component is now being converted to Serviced Apartments with 295 keys along with 50,000 sq.ft business center and 65,000 sq.ft of banquet facility.

Highlights

• MARG Ltd's FY13, Revenue Stands at Rs.762 Crore, including EPC revenue of Rs.748 Crores, with Current order book at around Rs.3,800 Crores-plus. Its 9M-Income comes at Rs.233.47 Crore. It is expected to end FY14, with a total revenue of Rs.300-310 crores. 
• Karaikal Port Private Limited (KPPL), a subsidiary of the Company has successfully handled 6.61 MMT of  multi-cargo in FY12-13 and reported a top line of Rs.277 Crores and EBITDA Rs.133 Crores. The Port has handled 19MMT of Cargo since its commencement.
• MARG Swarnabhoomi has sold 402 apartments (0.4 million sqft) with sale value of Rs.74 Crores during FY12-13, taking cumulative sale booking to 2042 apartments (2.02 million sqft) with sale value of Rs.341 Crores. In FY14, the company is expected to generate around Rs.85-90 crores from the sale of apartments. 
• MARG ProperTies Limited, the real estate arm of MARG has sold 369 units (0.4 million sq ft) in FY12-13, with sale value of Rs.132 Crores, taking cumulative sale booking to 1966 apartments (2.12 million sqft) with sale value of Rs.552 Crores. In FY14, also, the numbers will be along the expected lines. 
• MARG bagged a double at CIDC Vishwakarma Awards 2013: G R K Reddy, CMD – MARG Group was chosen as ‘Industry Doyen’ & MARG Ltd, as the ‘Best Professionally Managed Company’.
• MARG Karaikal Port was Chosen as the ‘Innovative Port of the Year’ at South East CEO Conclave & Awards, 2012.  
• Two awards at 'Construction Week Awards 2012' at Mumbai:
  (i) Excellence in CSR (Winner)
  (ii) Infrastructure Company of the year (Runner up).
• Marg Ltd has total of 58 Subsidiaries as on 31st March 2013, out of which 5 Non Wholly-Owned Companies and 53 Wholly-Owned Companies, including 25 Step-down Subsidiaries.

• JOINT VENTURE: The Company has following major joint venture companies:
• (i) M/s. Future Parking Private Limited (in which MARG holds 51% of paid-up share capital), is a joint venture with M/s. Apollo Hospitals Enterprise Limited for the development of Multi Level Car Parking (MLCP) at Wallace Garden, Chennai on BOT basis, with a provision of right for development of commercial complex along with the MLCP facility for the entire BOT period.
  (ii) Signa Infrastructure India Limited (in which MARG holds 74% of paid –up share capital), is a joint venture with M/s. Housing and Urban Development Corporation Limited (HUDCO) for Techno-Financial collaboration.
  (iii) M/s. Rajakamangalam Thurai Fishing Harbour Private Limited (in which MARG holds 39% of paid-up share capital), is into joint venture with M/s. Rajakamangalam Thurai Development Trust to develop a fishing Harbour at Rajakamangalam Thurai in Kanyakumari District of Tamil Nadu.

Outlook
The infrastructure industry is expecting a MAJOR IMPROVEMENT, this year (FY15), after suffering a repeated setbacks, during the last three fiscals (FY12, FY13 and FY14). 

The outgoing UPA Government of India had taken measures to stabilize the economy and revive the sentiments which are expected to have positive effects for the economy in medium to long term. The slow growth in the infrastructure sector was primarily driven by a range of sector-specific issues, such as land acquisition, environmental clearances, high interest rate regime and macro-economic factors. Marg Ltd is prepared to capture the growth in the high end, focused to meet the challenges and is committed to deliver the best in adding value to the company. Marg Ltd is known for ‘Innovative Thinking’, enjoys strong brand image due to the past performance which will act as a catalyst in ensuring a sustainable growth in future. In addition, the new affordable housing scheme, steady growth in port activities, industrial urban infrastructure services and increased opportunities for EPC shall drive growth prospects to the Company’s business.

The infrastructure sector in India is still in its nascent stage and a lot of development is required in logistics, ports, railways, road connectivity, communications and power. This opens up newer opportunities for the companies like Marg Ltd. 

Caution & Conclusion

While the assets created by MARG are poised for growth and value creation in the long run, due to the present economic situation and allied reasons, there is a temporary cash-flow mismatch. This has put some pressure on the current liquidity situation in MARG and its ability to service debts. Managing this temporary cash-flow mismatch will go a long way in ensuring that the value creation envisaged by all the projects in the mid and longer term are intact.

As part of the initiatives to achieve this, the Company has discussed with all the bankers and bilaterally renegotiated most of the loans with principal / interest moratorium and extended repayment period, matching the cash flow generation capabilities of the Company. Further, Management has also tightened up more the cost monitoring initiatives by ensuring that optimum levels of resources are deployed, leveraging maximum efficiency. These measures have improved the cash flow position and has also allowed the Management to concentrate on the business development and execution.
Marg Ltd (Rs.19.95) is a huge company and slowly its share price would move towards Rs.89-90 mark or may be even higher. Hence, buy the shares of the company whenever it comes out of the circuits and keep holding. Moreover, if SEBI order on OPEN OFFER is enforced in future by the honourable Supreme Court of India, then it could move towards Rs.300 plus mark in the coming days. It is Mega-Bagger in the making, therefore, it is a must for every portfolio. 

TEXTILE: INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian Textiles and Clothing Industry is one of the major sectors of Indian economy and accounts for 4% of Country's GDP, contributes 14% to total Industrial Production and nearly 17% of the total export earnings are contributed by Textile sector. The Industry had invested Rs.2 lakh crore to upgrade and modernize under Technology Upgradation Fund Scheme (TUFS). 

The fortunes of the Textile industry improved during FY 2012-13 from the depressing performance of FY 2011-12 which  was caused by variety of external factors. The improvement in performance is due to moderation in cotton prices and stable demand for Yarn/Fabrics backed by consistency in prices. The Union Budget for 2013-14 has given some fillip to Textile Industry through the measures viz. Zero Excise duty route for Ready made garment industry, extension of TUFS in the 12th plan with an investment target of Rs.1,51,000 crore with focus on powerloom sector, allocation for Textile parks under the Scheme for Integrated Textile Parks (SITPs), proposal for Integrated processing development scheme. 

OPPORTUNITIES

The Industry fulfills one of the basic necessities of life. Foreign Direct Investment (FDI) in retail is an opportunity that would unleash demand in the long run. Moreover the Government is negotiating with European Union on Free Trade Agreement (FTA) which if it comes into effect will give a big boost to Textile & Clothing industry. Technical Textiles is another segment which will drive the demand in future.

OUTLOOK
The outlook for the Textile industry remains positive with both raw material and finished goods prices remaining stable and demand being moderate. However persistent increase in other operating costs coupled with stress on liquidity is an area of concern which may have a bearing on the performance of the Industry.

WINNING STROKES: THINK DIFFERENT

Today's call Kingfisher Airlines Ltd, at Rs.3.42-3.47, hit the upper freeze. Yesterday, I took some shares in the accounts I manage at Rs.3.20, after I found that there are some strong reasons to buy the stock, when afer a long time, the NDA came to power in India. This is a pure POLITICAL STORY. Vijay Mallya, was the working president of the Janata Party, which was merged with the BJP. Hence, the BJP and Vijay Mallya is synonymous. Now on th flip side, though United Bank of India (UBI) has filed a winding up petition against Vijay Mallya- promoted Kingfisher Airlines for failing to retire loans amounting to Rs.336 crore; the case could drag on and on and in between Mr.Mallya could manage the funds. Moreover, though SBI is trying hard to declare declare Vijay Mallya a willful defaulter  on the ground that, the borrower diverted funds which was taken from the bank and not paying up despite having the ability to pay;  it is not that easy to do that in any court of law, especially when one has high political connections. SBI leads a 17-member consortium of lenders that is trying to recover dues running into over Rs.7,500 crore in principal alone from Kingfisher Airlines. SBI has the maximum exposure of Rs.1,600 crore to the airline, which has been grounded since October 2012. Vijay Mallya is a seasoned businessman and he would manage money from somewhere, and revive  the airlines, when it has a friendly government at the centre. 

A buy call was given on IVRCL Ltd today at Rs.25, for a target of Rs.29. The company announced on 27 May, 2014, that the company Board will consider the proposal of raising funds by issue of equity shares preferably on rights basis or by any other permissible means. The Board of Directors of the Hyderabad-based construction and infrastructure company is slated to meet on May 30 to finalise the company accounts and also consider payment of dividend, if any. The company is in the process of restructure of the finances and has sought to go in for corporate debt restructure. The process is now underway and is likely to be announced shortly. As a part of the CDR process, the company may also have to consider allotment of preferential shares to some of the lenders, which is generally part of the package. There is hope that the new (NDA) government will expedite infrastructure development and speed up execution cycles. This can lead to long-term financing, easier approval and clearance processes and better profitability for infrastructure companies. Award of fresh orders is also likely to resume with the new government taking charge. On the other side, high levels of receivables (Rs.2,379 crore) have been qualified by the auditors. Working capital constraints also held up execution, even though its order book is healthy at around Rs.23,700 crore. Inspite of these caveats the stock is looking good both fundamentally and chartically at the current moment (Rs.25.03) and it was recommended today by a marketman for a target of Rs.31. 

My recent call, Western India Shipyard Ltd at  Rs.2.09, saw it hit the upper circuits at Rs.2.29. Western India Shipyard (Rs.2.29) -As an ABG group company, is assured of continuous ship repair technology, flow of repair orders, marketing & financial support for achieving higher revenue and profitability. Western India Shipyard Limited (WISL), India's largest composite ship & rig repair facility in the private sector, is one of the world's advanced multi-dimensional and multi-purpose yard offering modern, streamlined, sophisticated ship & rig repair facilities and industrial services. WISL's state-of-the-art Floating Dry Dock "westerner" has a capacity to repair ships upto 60,000 dwt and to accommodate ships upto 225m. length and 32.5m. in breadth. The yard has been designed and established in collaboration with world leaders in Ship Repairs. Functionally laid out and built around the gravity centre concept, the yard is 90% covered by lift and carry facilities by Portal/EOT/FDD & mobile cranes. The scrip is expected to give you huge returns going forward.

Now the Indian Markets are on a strong BULL RUN, but the choice of Arun Jaitley, a novice in the Finance Department, as the FM of India, has depressed the mood of many marketmen. FIIs  have been on a selling spree, post, the declaration of the names of the Finance Minister, External Affairs Minister and HRD minister (to point out a few). Narendra Modi's cabinet is an example of Idiocy (Picking up the mad lady Smriti Irani Vs Dr.M M Joshi) and Mediocrity. Today FIIs sold share worth Rs.522.9 Cr while DIIs were net buyers to the tune of Rs.195.2 Cr. However, in these markets too, Rs.5 (five) lakhs can be converted into Rs.1 Crore (Rs.10 million) in 5 years or before that. Those who want to become crorepatis or at least semi-crorepatis, can contact me at the earliest. After Rs.1 crore is made, I will take Rs.25 (twenty five) lakhs and you will take Rs.75 lakhs, though in between there will have to be some sharing of profits, to make the things interesting. Any stable government gives a vibrant share market, provided the government at the centre is effective and responsible. If you are interested then send me a mail at: suman2005s@rediffmail.com and please do it fast, to take advantage of the current buoyancy in the markets. Also,  I would suggest you to leave the specialized works to persons, who have spent years in this field. This will help you cover all your losses and come out victorious at the end. 

Two Stocks: Must Buy

(i) Western India Shipyard Ltd (Rs.2.09): Western India Shipyard Limited (WISL), India's largest composite ship & rig repair facility in the private sector, is one of the world's advanced multi-dimensional and multi-purpose yard offering modern, streamlined, sophisticated ship & rig repair facilities and industrial services.

WISL's state-of-the-art Floating Dry Dock "westerner" has a capacity to repair ships upto 60,000 dwt and to accommodate ships upto 225m. length and 32.5m. in breadth.

The scrip is near its 52-week low price of Rs.1.40 and therefore, accumulate as much as possible and keep holding. The yard has been designed and established in collaboration with world leaders in Ship Repairs. Functionally laid out and built around the gravity centre concept, the yard is 90% covered by lift and carry facilities by Portal/EOT/FDD & mobile cranes. It was taken over by ABG Shipyard Limited, a major shipbuilder with shipbuilding yards based at Dahej and Surat, by the acquisition of equity stake of 60%. Moreover, Shipping ministry is scheduled to be headed by Nitin Gadkari, who had made a name for himself by adopting an innovative approach in expanding road transport network and bridges in Maharashtra when he was a minister there in BJP-Shiv Sena Government. This further raises optimism for the stock. The target could be Rs.7-8 in the medium term, however considering it to be a Gujarat based company, the targets of Rs.11-12 can also be achievable. It was trading above Rs.15, in October--December period of 2010. 

(ii) Marg Ltd (Rs.18.20): Incorporated in 1994, MARG Group today successfully operates the fully functional ‘MARG Karaikal Port’ having a current capacity of 21 MMTPA. In addition, the Group has developed 1.2 Mil sqft of residential space, delivered 1200 homes and has a customer base of over 4000. The Group is executing 21 major projects worth more than Rs.3800 crores in varied domains through its EPC division. Major developments include a 1.85 million sq.ft. integrated development – 'MARG Junction Mall' and a unique 23 million sq. ft. integrated industrial and services township, 'MARG Swarnabhoomi'.
MARG Group is one of India's fastest growing infrastructure organizations and is listed by Dun & Bradstreet as among "India's Top 500 Companies 2011".
Moreover a recent Supreme Court order, disallowing promoters of Chennai based construction firm Marg to withdraw an open offer to public shareholders, has come as a relief to investors, who are stuck in shares of companies under similar litigation. The apex court on 25th April, 2014 set aside an order from Securities Appellate Tribunal (SAT), which had struck down Securities and Exchange Board of India (Sebi)' s decision to ask Marg's promoters to make an open offer. Akshya Infra — Marg's promoter entity — in October 2011, had made an open offer to the Marg shareholders to acquire up to 76.5 lakh shares, or 20% of diluted capital at Rs.91 a share. 
Later in December 2012, Sebi has told the promoters to announce an open offer for Rs.340 per share based on prices prevailing at that time together with interest. With SEBI taking a long time to clear the open offer, the company sought the regulator's approval to withdraw the offer. However, the honourable Supreme Court Judgement, has more or less made the case much stronger for the small investors. The share will slowly move up and reach near the open offer price. 
Buy the shares of the company and keep holding for a target of Rs.88-89 in the coming days. 
Note: I might NOT be present in the market in the 1st hour, tomorrow and for few days in this week, due to some nagging family issues, which is not getting solved, inpsite of my best efforts. Regarding the issue I would like to say that, it is another case of FRAUD, I had to encounter here in BOMBAY. It is very difficult to trust anyone here.....I am trying hard to settle the problem as soon as possible but it has been lingering on since last 7-8 days. Anyway, all the best for the markets. 

Demand for diesel cars falls as fuel price inches up to petrol 

[Editor: Shareholders in Southern Online Bio Technologies Ltd (SBTL), has much room to cheer; as according to a Mumbai based financial weekly, Diesel Price De-regulation is on the cards. CMP: Rs.8.62]

NEW DELHI, 26 May, 2014: Demand for petrol cars has been growing steadily for a while as 58% of cars sold in 2013-14 have gasoline engines. With the price gap between diesel and petrol narrowing rapidly, buyers aren't ready to pay a premium for diesel-fired engines. 

According to the latest industry data, diesel car sales have slumped 14% in the financial year ending March this year. What's worse, the fall could be sharper if the Narendra Modi-led government accepts a pending Cabinet proposal for a steep increase in diesel rates by Rs3-4 per litre before aligning its pump prices with market rates and deregulating it completely like gasoline, government and industry officials said.

The UPA government had deregulated petrol prices in June 2010 and allowed state oil marketing firms to raise diesel prices in small monthly doses of 50 paise from January last year.

"Revenue loss on diesel is expected to fall significantly by May-end owing to appreciation of the Indian rupee against the dollar because of a stable government at the Centre. It is a good opportunity for the new government to usher in economic reforms by a one-time hike in its price and deregulate it," a senior government official with direct knowledge of the matter said. 

Petrol cars are back in the reckoning even as the automobile sector encountered a slowdown where the car market shrank 5% last fiscal. In price-sensitive urban markets, that generate more than half of new car sales, diesel models have lost out because of their higher sticker price - priced almost a lakh higher than petrol variants - with customers preferring petrol options. 

"Petrol models are increasingly being preferred by customers," says Hyundai Motor India senior vice president (marketing & sales) Rakesh Shrivastava. "While the fuel price differential is the biggest reason for the shift, we have seen urban customers preferring the smoother and efficient petrol cars rather than the noisier diesel variants." 

The craze for diesel cars has diminished, as the phased de-control of diesel has bridged the price gap between petrol and diesel to just Rs15 from Rs20 in January 2013 and over Rs26 in the first quarter of 2012. Diesel is currently sold at Rs56.7 in Delhi, while petrol goes for Rs71.4, and going by the trend, the gap may narrow down to less than Rs10 in the next few months, automobile industry experts said.

According to a latest report of the Petroleum Planning and Analysis Cell, regular increase in diesel rates and significant drop in sales of commercial vehicles have led to a fall in annual consumption of diesel for the first time since 2001-02.

Diesel consumption has recorded a negative growth of -1.8% in March and a cumulative decline of -1.0% in 2013-14, it said. The fall in diesel consumption, which accounts for over 40% of the total fuel sales, is expected to reduce fuel subsidy significantly. India's estimated fuel subsidy, which was about Rs140,000 crore, is estimated at about Rs110,000 crore in the current fiscal, partially due to regular hikes in diesel rates and also because of the rupee appreciation. 

The shift is more visible for carmakers which have both fuel options in their product portfolio. For instance, in Maruti's high-selling DZire compact sedan, diesel variant sales have dipped 5% to 70%, with petrol accounting for every third car sold in the diesel market. Similarly, Honda had a hefty 82% diesel share for its Amaze compact sedan when it was launched in 2012. 

Source: The Economic Times

Modis take on textile sector A placebo or reality?   

[Editor: Buy Pradip Overseas Ltd at Rs.5.80, T--Rs.12. The textile stocks generally give return in the 3rd and 4th quarter.  The company should come up with better results from Q1FY15, as it has completed the restructuring of its loans. The Company has undertaken a project to develop Industrial Hub. After implementation of the same the Company will be able to come out of the present difficult situation. It  will take another 1-2 years to get the project completed. The company said in September, 2012, that the government had allowed it to withdraw from the proposed special economic zone (SEZ), for which it raised around Rs.116 crore though an initial public offer (IPO) in March 2010. According to the Smart Investor, 28 September, 2012, the company had proposed to established the SEZ over an area of 109.48 hectares. However, in the wake of tepid response from investors and imposition of minimum alternate tax (MAT) on units in SEZ affecting future prospects of the project, the company decided to scrap its SEZ. The company now has undertaken a project to set up an industrial park (Not only textiles but all types of manufacturing companies is expected to set up their units at the proposed park) at the same location instead, as mentioned earlier.
Now there are BSE/ NSE listed companies, who are having pledged shares with the lenders. Such companies have to pay extra margin money on every share price fall. This erodes the working capital of the business concern and puts pressure on the resources. Now, you would see, the shares of many such companies like Glodyne Tech (Rs.6.85), Shiv Vani Oil and Gas Exploration Ltd (Rs.17.41), Core Projects Ltd (Rs.16.03), etc are moving up. It is because with the rise in share price, the risk of putting more and more margin funding comes down. This gives the companies much more room to play. In such a context, I asked to buy Pradip Overseas, for  a slightly longer term perspective, as from FY15, the company is expected to show improved performance. 
Debt Restructuring:
In F.Y. 2011-12, Several external factors such as high volatility in the cotton prices (main raw material), meltdown in overseas financial markets, RBI monetary policy, etc. had impacted the company’s ability to repay its debts in a timely manner leading to severe liquidity challenges. As a result, company had filed an application with SBI (lead banker of the loan consortium) to recast its debt obligations which was approved on March 27, 2012. The significant highlights of the package are as under:
i) Effective date for restructuring: 29.02.2012
ii) Under the scheme, debts are restructured as :
(a) Working Capital facilities comprising of cash credit, Letter of Credits, Purchase Bill Discounting and Guarantees of Rs.534 Cr.
(b) Conversion of overdrawn working capital facilities and short term loans amounting to Rs.403.26 Cr to Working Capital Term Loan (WCTL). WCTL carries interest rate of 12.50% p.a.
(c) Interest on WCTL for the first 9 months (from March, 2012 till November, 2012) shall be converted into Funded Interest Term Loan (FITL) carrying interest at 12.50% p.a. Repayment of FITL has started from April,  2013 as per schedule.
(d) The Company has offfered additional security for securing restructured debt]

Policies have derailed and assisted the leaders to win hearts of the compatriots. This grants policies an exclusive place in not only development of a nation, but also in the political scene. The strategies shared by the politicians prior to a critical event can thus give a proper structure to a sector. In India, policies and schemes of one such political leader � Narendra Modi, have often been examined and followed closely by experts. 

Modi's interest with regard to textile sector appears promising and the Indian textile sector might experience a major breakthrough internationally if things go as per plans. This formula has already worked for Gujarat and its success has at least given Modi a firsthand experience as to how this and other policies akin to this will work at national level. The textiles and clothing sector is by far the largest employer in South Asia, providing sustenance to over 100 million people. Modi has taken his job to reform textile sector in Gujarat seriously. The expectations from him are palpably high, but, only time will tell if his policies will work at the national level or not.

Source: Fibre to Fashion.com

PVP  Ventures Ltd: Some Information

CMP: Rs.8.64

Photo: Deccan Chronicle

At PVP Ventures Limited's business presence is spread over urban infrastructure development, media & entertainment and special situations. The company hoped that its efforts will translate into attractive numbers that have begun to emerge during 2012-13 and will become increasingly visible from 2013-14 onwards.

Positioning

PVP Ventures limited (formerly SSI Ltd) was acquired in the year 2007 (incorporated in the year 1991) and listed since 1995. It has majority ownerships in subsidiary companies and as a result, it is a business entity in its own right and a holding company as well. The businesses of the parent company and subsidiaries are managed by separate teams of professionals.

Business 

PVP Ventures Ltd operates in three segments – urban infrastructure, media & entertainment and special situations. 

• In the real estate/urban infrastructure segment, PVP signed a joint development agreement with Unitech Ltd and Arihant Housing to build an integrated 70-acre township called north town in Chennai. 
• In the sports consumption space, the company acquired the hyderabad franchisee of the indian badminton league (ibl) and christened it as the hyderabad hot shots. PVP Ventures Ltd recently informed the BSE that the Participation Agreement between PVP Ventures Limited and Football Sports Development Private Limited (an SPV formed by IMG Reliance; Star India and All India Football Federation) has been executed by the Parties. With the execution of this Agreement, now PVP Ventures Limited has become eligible to own a football team and participate in the football league being organized by Football Sports Development Private Limited and the first season of the Indian Super League (ISL) may commence in the month of September, 2014. Meanwhile, Kerala Chief Minister Oommen Chandy will have a meeting with cricket legend Sachin Tendulkar, who is a joint owner of Kochi football team along with PVP Ventures for the first Indian Super League to be held in eight cities.
• In the special situations vertical, it is continuously evaluating opportunities to build a portfolio of scalable and stable businesses driven by the burgeoning Indian consumption story.

Presence

The company possessed a 70-acre land parcel - popularly known as Binny Mills - in the heart of Chennai. The company also owns 135 acres of prime land in Shamshabad, Hyderabad, through its subsidiary and affiliate companies.

Political Impact
Recently there were reports in Deccan Chronicle, 19 May, 2014, that after playing a big part in the TDP-BJP combine’s win, Pawan Kalyan has emerged as the real “power superstar”. On Monday, many of the elected MLAs and MPs visited the star to thank him for his support to the party. “Pawan Kalyan is now playing a big part in AP politics and is also close to Narendra Modi. So MLAs and MPs who are aiming for ministerial berths have asked the actor to recommend them,” says a source. The actor, however, says that he does not have any interest in playing ‘power politics’. 
He has become all the more popular because in spite of launching his party, he did not contest. Another rumour is that Potluri Vara Prasad, a close friend of Pawan and the man who organised the Jana Sena party meetings for the actor, is trying for a Raja Sabha seat through Pawan. Prasad V. Potluri is founder and the man behind PVP Ventures Ltd.  On the other hand, Deccan Chronicle, 22 May, 2014 writes that there are speculations, that the Prime Minister-designate Narendra Modi could reward Telugu superstar Pawan Kalyan with a Rajya Sabha berth for his contribution to the victory of the TD and BJP in the Lok Sabha elections in Andhra Pradesh. In both the cases the real beneficiary would be PVP Ventures Ltd. 

Outlook
The outlook for the company continues to be optimistic. The solid performance reported during 2012-13 is expected to sustain, marked by improved success in both businesses. 
On account of Chennai enjoying a high proportion of purchases by end-users (more than 80 percent), the buoyancy in real estate realisations in the north town area is expected to sustain. of the 23 proposed townships (spread across more than 25 acres) in Chennai, north town is the only development in northern and central chennai. the company will progressively encash its total apartment inventory at the right junctures and enhance realisations.
As a result of the optimistic foundation in both businesses, the company expects to report a healthy and growing topline in the ensuing years, thereby enhancing value for its stakeholders.

Conclusion

In such a situation, the scrip should make new highs in the coming days. I place a target of Rs.15 for the share of PVP Ventures Ltd, in the next 3 months time frame. 

Election results: BJP declares 'new era' for India as Congress concedes defeat

[Editor: Buy PVP Ventures Ltd at Rs.7.60-7.80. With NDA returning to power and TDP in alliance with the BJP, it is now more or less confirmed that Potluri Vara Prasad (PVP), would be given a Rajya Sabha ticket and even could be made a minister for industries. Besides, the company's fundamentals are improving, with its net debt coming down. So, buy the scrip before it shoots away]

NEW DELHI: The BJP declared "the start of a new era" in the world's biggest democracy on Friday as the ruling Congress conceded defeat in elections that exposed anger about sickly economic growth and rampant corruption. 

Preliminary results and media projections at the climax of the marathon six-week election showed the Bharatiya Janata Party (BJP) and its hardline leader Narendra Modi on track for the first parliamentary majority by a single party in 30 years. 

Modi, the 63-year-old son of a low-caste tea seller tainted by anti-Muslim violence in his home state of Gujarat in 2002, wrote on Twitter that "India has won. Good days are coming." 

The stunning results exceeded all forecasts. Firecrackers exploded at BJP offices around the country and sweets were handed out in celebrations that began only a few hours after the first figures filtered out. 

"This is the beginning of change, a people's revolution and the start of a new era," senior BJP leader Prakash Javadekar told AFP at party headquarters in New Delhi. 

Media projections showed the BJP winning more than the 272 seats required for a majority on its own in the 543-seat parliament, with victories by its allies taking it easily in excess of 300. 

The Congress party, the national secular force that has run India for all but 13 years since independence, was set to crash to its worst ever result after a decade in power. 

"We accept defeat. We are ready to sit in the opposition," senior Congress leader and spokesman Rajeev Shukla told reporters at party headquarters in New Delhi as preliminary results showed it winning only 49 seats. 

"Modi promised the moon and stars to the people. People bought that dream," he added. 

Stock markets, which have risen 5.0% in the past week, surged again. The benchmark sensex index showed a gain of 4% on Friday at a record high. 

Investors and the wider public have rediscovered heady — many say unrealistic — optimism about the world's second-most populous nation after years of frustration about low economic growth, rising food prices and corruption. 

The disastrous showing for Congress is another blow to the scion of the Gandhi dynasty, 43-year-old Rahul, whose first performance as chief campaigner will likely lead to acrimonious fallout. 

The country's most illustrious political family has provided three prime ministers but preliminary results showed Rahul with only a wafer-thin lead in his constituency of Amethi. 

A group of Congress supporters shouted slogans in support of Rahul's more popular sister Priyanka outside party headquarters on Friday. 

"The politics of inheritance, the politics of dynasty, the politics of entitlement is being punished," BJP spokesman Ravi Shankar Prasad told the CNN-IBN news channel. 

Modi has reinvented himself from a controversial regional leader accused of turning a blind eye to religious riots in 2002 to an aspiring prime minister intent on helping India fulfil its potential. 

After a presidential-style campaign built around him and his record during 13 years running Gujarat, expectations are sky-high of what Modi will deliver in a chaotic and still poor country that is home to a sixth of humanity. 

Modi's promises to revive the flagging economy have won him corporate cheerleaders, while his rags-to-riches story and reputation as a clean and efficient administrator satisfy many Indians' desire for strong leadership. 

He was always assured the votes of his core Hindu nationalist supporters, but his election pitch has drawn the urban middle classes as well as the poor, whose loyalty has traditionally been to Congress and its welfare schemes. The BJP's previous best showing was in elections in 1998 and 1999 when it won 182 seats and ran the country until a shock defeat to Congress in 2004. 

While 81-year-old outgoing Prime Minister Manmohan Singh was hailed by US President Barack Obama as a "wise and decent man", Modi would be an awkward prospect for Washington and other Western powers. 

Elected three times as chief minister in his home state, Narendra Modi was boycotted by the US and European powers for a decade over the 2002 riots in Gujarat that left around 1,000 people, mostly Muslims, dead. He denies that he turned a blind eye to the bloodshed and his focus on the campaign trail has been jobs. 

But the BJP manifesto includes a pledge to build a temple to honour the Hindu god Ram at the site of a former mosque in northern India, a religious flashpoint that sparked deadly rioting in 1992. 

"He has to succeed on the economy and that's the thing on which he will be judged," said Christophe Jaffrelot, an academic on India from Sciences Po university in Paris and King's College London. 

Courtesy: The Times of India