SumanSpeaks: The Information Super Highway

IVRCL eyes selling assets, raising equity [ Editor : The article below says that half its current order book of Rs.20,000 crore is from the lucrative water segment, such as water treatment and irrigation.  IVRCL Ltd (Rs.18.10)  expects growth of around 15% a year.  “If the next two quarter s will see consolidation, the next fiscal would be a turnaround year,” said Reddy,  Chief Financial Officer of IVRCL . Meanwhile the  government on Wednesday, 27 August 2014, took a decision to allow the Ministry of Road Transport and Highways to decide on mode of delivery and amendments in Model Concession Agreement in respect of national highways projects for expediting of implementation of road infrastructure projects in the country. A strong buy is recommended, with a price target of Rs.37-39, for 6-9 months perspective] Hyderabad/Chennai. August 28:  Infrastructure company IVRCL, once a stock market favourite, is now struggling to script a comeback. ...

FTIL to 'highlight correct facts' of MCX-SX buyback to CBI Photo : Business Standard 27 Aug, 2014: MUMBAI: Financial Technologies (India) or FTIL has clarified to the BSE that it would make a representation to CBI "highlighting the correct facts" with regard to the "alleged illegality" of the buyback arrangement between itself and a nationalised bank of MCX Stock Exchange's shares.  CBI on Monday lodged an FIR against three serving officials and a former one of Sebi, and Jignesh Shah, promoter of FTIL — the erstwhile promoter of MCXSX — alleging that the promoters of the bourse had entered into a buyback arrangement with a nationalised bank, in violation of relevant rules, and "in connivance with Sebi officials, deliberately suppressed this material fact" while applying for an extension of recognition of MCX-SX, to conduct trade in currency derivatives in 2009.  The FTIL stock closed down almost 5% at Rs 259 apiece on Tuesday.  ...

NSEL: Jignesh Shah’s fall from grace and why he will weather it Photo : Live Mint Aug 5, 2013: One question that has risen ever since troubles at National Spot Exchange emerged is: what will happen to Jignesh Shah and the empire he built on his entrepreneurial spirit? Jignesh Shah's has been a story of both backward and forward integrations. He started off in the business of exchange technology, went on to set up exchanges, both commodities and equity, and also ventured into many related businesses. The growth of his flagship company Financial Technologies (FT), which is also the holding company, has been envious. Initially a technology services provider for stock exchanges, FT set up Multi Commodity Exchange, which went on to dominate the Indian commodity futures trading market. Under a weak Forward Markets Commission, which did not have much power, commodity futures trading in India was thriving, with turnover running into trillions. For FT, MCX was a ...

Share buyback arrangement was legal, says FTIL  FTIL clarification in response to FIR registered by CBI Mumbai, Aug 27 2014 Financial Technologies (India) Ltd. (FTIL) has said that the buyback arrangement for shares with shareholder banks of MCX Stock Exchange (MCX-SX) was declared legal by the Bombay high court while hearing the matter between the exchange and the capital markets regulator.  The FTIL clarification was in response to the first information report (FIR) registered by the Central Bureau of Investigation (CBI) on Monday for alleged violations while granting extension to MCX-SX. According to CBI, the buyback agreement entered into with the banks was illegal.  “The Bombay high court, in its order, (Page No. 145 Para VII) had ruled that “the buy-back agreement cannot be held to be illegal as found in the impugned order of the whole timer member of SEBI on the ground that they constitute forward contacts. Hence, the accusation of CBI does not...

Financial Tech contests CBI charges Photo : First Biz [ Editor : Mr.Jignesh Shah, was a non-executive director of NSEL and was not involved in its day-to-day operations. Mr.Shah's lawyer Mahesh Jethmalani has reportedly argued in court that Shah had no knowledge of the crisis, saying it was perpetrated by a clutch of NSEL employees and brokers, including Anjani Sinha, former chief executive of the commodity exchange. FTIL's net profit rose 57.93% to Rs.128.24 crore on 27.43% increase in total income to Rs.216.05 crore in Q1 June 2014 over Q1 June 2013. FTIL is among the global leaders in offering technology IP (Intellectual Property) and domain expertise to create and trade on next generation financial markets. It is a global leader in creating and operating next-generation tech centric financial exchanges] MUMBAI, AUGUST 26:  Financial Technologies has contested CBI's charges of irregularities in grant of licence last year to its subsidiary MCX Stock Exchange. The...

MCX SX cancels Financial Technologies warrants [ Editor : Today the shares of Financial Technologies Ltd were recommended as a buy at Rs.277-278, for a target of Rs.320-325, in the short term. On the other hand the shares of Allied Digital Services Ltd (Rs.19.40) are buzzing, as the company is the hot favourite to win the mega, Rs.1000 Cr (please clarify the exact value of the tenders from your sources), Mumbai-CCTV- project.  The project, announced to enhance security in the city after the 26/11 terror attacks, aims at installing 6,000 CCTV cameras in the city (14 cameras per sq km) ] MUMBAI, AUG 25:  MCX Stock Exchange has extinguished warrants held by Financial Technologies and transferred Rs. 56.25 crore non-refundable interest free deposit issued against the warranted to the capital reserve. The development will increase the exchange networth to Rs. 160 crore from Rs. 110 crore and help meet SEBI minimum networth criteria of Rs. 100 crore. The decision to ...

WINNING STROKES: THINK DIFFERENT Pix Transmission Ltd recommended yesterday around Rs.49-49.5 today touched Rs.54, before closing at Rs.52.60. The next targets seems to be Rs.59-60.  Resurgere Mines and Minerals Ltd today hit another buyer freeze at Rs.1.63. The investors were asked to lap up the scrip on all declines.  IVRCL Ltd today closed flat at Rs.18.85. The company should be doing well in the short to medium term. The investors are suggested to accumulate it on all declines.  Allied Digital Services Ltd today hit the buyer freeze at Rs.18.50. Yesterday, some positive news regarding the mega-Pune project was revealed in this blog.  PVP Ventures Ltd today fell by more than 4%. The scrip will not rise till the Potluri Vara Prasad and his family stops looting the company, in broad day light. 

FIIs and DIIs were Net Buyers

India’s Q1 gold jewellery exports up 23%, even as global falls Photo : Live Chennai SURAT,  Aug 20, 2014: Gold jewellery exports from India has increased 23% in the first quarter of the current fiscal to nearly $2 billion, even as the global demand for the jewellery saw a decline of 36% in the same period.  According to a report by the World Gold Council, the demand fell due to a decreased off-take in Asia and the Middle East. However, demand picked up in the US and UK.  Industry experts also attributed the increase in exports to a decline in gold price.  Pankaj Parekh, vice-chairman, GJEPC, said, "As compared to 2013, gold prices have softened almost 13%. Also, the economies of the US and the UK are recovering, which has led to the rise in exports."  Vipul Sutariya of Dharmanandan Diamonds, a DTC sightholder company, said, "The jewellery markets in US and UK are performing well. Since the gold prices have fallen internationally, cons...

Market Mantra Resurgere Mines and Minerals Ltd today hit the buyer freeze in the opening trade. The scrip has fallen, to some abnormal levels, inspite of the management sounding optimistic.  Todays' call : If you have some Free Cash please buy PIX Transmission Ltd (BSE Code: 500333) at Rs.49---49.50. The company's Q1FY15 results are  not bad and also, its management has expressed confidence in its business. Moreover, you can exit Genera Agri Ltd at Rs..6.50-6.70, either with minimum loss or at no loss no gain; if you have not averaged. If you have bought recently then book profits in Genera Agri Ltd and exit the counter. You can put this money in Pix Transmission Ltd.  PIX Transmissions Ltd., is the leading manufacturer of Belts and related mechanical transmissions products in India. The Company has state-of-the-art Belt manufacturing units as well as a completely automated Rubber Mixing facility in Nagpur. PIX Transmission Ltd enjoys significant brand equity in ...

Modi outlines his vision for inclusive growth Photo : OECD [ Editor : Narendra Modi and the media often talks of "Inclusive Growth" of India and a large section of Indians cheers; as if it is very easy to achieve. I therefore, wonder how many of these media-men who often speak about "Inclusive Growth" really know the meaning of the term. So, let us get some idea about, one the most misused term, "Inclusive Growth'" from a Planning Commission Document, GOI: "The progress towards inclusiveness is more difficult to assess, because inclusiveness is a multidimensional concept. Inclusive growth should result in lower incidence of poverty, broad-based and significant improvement in health outcomes, universal access for children to school, increased access to higher education and improved standards of education, including skill development. It should also be reflected in better opportunities for both wage employment and livelihood, and in improve...

PM Narendra Modi stresses on building infrastructure; says take ownership to build a strong nation  Photo : IDFC [ Editor : The real problem with Narendra Modi is that he talks more but works less. He is seen more, giving high publicity to his works, rather than showing his real achievements. However, he is a quality (good) salesman, who somehow managed to reach the corridors of New Delhi. Now it seems a large section of the media dances to his tune. Anyway, I sincerely hope that, he becomes a man of action instead of living only on his past glory. But then I am more interested with the performance of the NDA. If the NDA does well and our (Indian) economy shines, then it does not become important, whether Narendra Modi continues to remain a Buffoon or not. A  monkey will always climb a tree, whether it is England or India. So let the ape climb a tree as long as it fetches fruits for us] NEW DELHI, 19 Aug, 2014: Stressing on the importance of buil...

WINNING STROKES: THINK DIFFERENT My recommended Genera Agri Ltd (Rs.6.510 hit the buyer freeze in the late afternoon trade. The scrip has a book value of Rs.76.02 and EPS of Rs.1.70. IVRCL Ltd moved up in late afternoon trade, after the following news was sent to the Paid Group members: The government is modifying the way projects are allocated based on assessment of viability, in a bid to fast-track award of highway projects.   Resurgere Mines and Minerals Ltd hit the buyer freeze on both the exchanges as the Goa government plans to renew the mining leases of those who have paid stamp duty.Goa Chief Minister Manohar Parrikar, in the State Assembly on Monday, said that atleast 27 mining leases on which stamp duty has been paid would be renewed by October 15. Moreover, the company is looking at P.E. funding to revive its business. Also, one of the biggest beneficiaries from the start of mining operations in Goa, would be Western India Shipyard Ltd (Rs.2.08).  P...

Sesa Sterlite gains as Goa govt to renew mining leases [ Editor : The most burning question now is: will this move usher in good days for the mining and shipping sector (especially ship repairing sector)? Only time will be able to tell, but if statistics are to be believed then those holding the shares of shipping and mining companies have much to cheer now] Mumbai  August 19, 2014: The Goa government plans to renew the mining leases of those who have paid stamp duty Shares of Sesa Sterlite were up nearly 4% at Rs 303 after the Goa government decided to follow the order of the Goa bench of the Bombay High Court to renew mining leases. Goa Chief Minister Manohar Parrikar, in the State Assembly on Monday, said that atleast 27 mining leases on which stamp duty has been paid would be renewed by October 15. He also announced that the mining operations in the State would be resumed by this year end. The stock opened at Rs 298 and touched a high of Rs 305 so fa...

Goa government not to challenge HC order on renewal of mining leases Photo : The Times of India Saturday, 16 August 2014: In a clear signal that 28 mining leases would soon be operational resuming iron ore extraction in the state, Goa Chief Minister Manohar Parrikar said that the government will not challenge the recent High Court order which has asked the government to renew these leases. The 28 mining leases in the state had got respite from the Goa Bench of Bombay High Court last week. The lease owners had already paid the duty under Indian Stamp Duty (Goa amendment) Act, 2012 as part of the renewal process. "The mining lease owners trusted government when no one else did it. I don't need to challenge the High Court judgement as it clearly says that the lease deeds can be executed subject to the conditions laid down by the Apex court in the writ petition," Parrikar told reporters here yesterday. The mine owners had paid the stamp duty to the government ...

Hold IVRCL Infra, target price Rs 25: Edelweiss [ Editor : I had earlier asked all to buy IVRCL Ltd (Rs.18.20) on all declines and keep holding for a target of Rs.31-32. But some traders started selling the scrip, post Q1FY15 results, like mad fellows. It is these people I know will not make much money from the markets. The pont is that if you go on buying and selling continuously (at the fall of a hat), then it is only the Brokerage House/s which gain/s and not you. Stick to few companies and track them on regular basis, to make money from the markets. Don't apply strict stop losses in a  bull market, because a scrip could suddenly rebound, taking all of you by surprise. Many traders I know sell a scrip with the hope of buying that at a lesser price---but unfortunately that does not happen all the time and they are left crying as the scrip suddenly starts hitting the UCs] Photo : IVRCL Ltd Edelweiss Securities has given a hold recommendation on IVRCL Infrastructure with...

IVRCL Ltd: Satisfactory Results on Sequential basis The south India based construction company IVRCL Ltd (Rs.19.80) came out with comparatively good set of numbers in Q1FY15, speaking sequentially; indicating, that the worst is perhaps over. In these kinds of companies it is futile to compare Y-o-Y figures, due to obvious reasons. The total income of the company for Q1FY15 came out to be Rs.833.50 crore as against Rs.1217.13 Cr in Q4FY14. The expenses came down drastically from Rs.1185.46 Cr in Q4FY14 to Rs.844.77 Cr in Q1FY15. Moreover the finance cost has nosedived to Rs.2.44 cr in Q1FY15 from Rs.44.83 cr in Q44FY14. The net loss of the company came down to Rs.157.92 Cr as against a loss of Rs.328.11 Cr in Q4FY14. Moreover, the company has an investment of Rs.65.75 Cr in its subsidiary, Hindustan Dorr--Oliver Ltd. During, Q4FY14, corporate Debt Restructuring Empowered Group, at its meeting held in on June 28, 2014 have approved the CDR proposal submited by the company. ...

Commerce Minister for easing of gold import restrictions Says restrictions are hurting the industry and has also led to spurt in smuggling of the precious metal Photo : World Gold Council New Delhi  August 11, 2014: With restrictions on gold imports leading to rise in smuggling, Commerce and Industry Minister Nirmala Sitharaman has pitched for relaxing gold import duty as it is 'badly' hurting the gems and jewellery industry. "As a Commerce Minister, I would want the gold restrictions to go away because gems and jewellery industry have been worried that a sector which is potentially so powerful is suffering because of the gold import policy," she told PTI. The minister said that gems and jewellery industry contributes significantly to the country's total exports. Gems and jewellery exports contribute about 15% to the country's total outbound shipments. In 2013-14, the exports were to the tune of $39.5 billion while India's total expor...

Want gold import duty gone, hurts jewellery industry: Comm Minister Sitharaman Photo : The Times of India New Delhi: With the restrictions on gold imports leading to rise in smuggling, commerce and industry minister Nirmala Sitharaman has pitched for relaxing gold import duty as it is ‘badly´ hurting the gems and jewellery industry. “As a commerce minister, I would want the gold restrictions to go away because gems and jewellery industry have been worried that a sector which is potentially so powerful is suffering because of the gold import policy,” she told PTI. The minister said that gems and jewellery industry contributes significantly to the country’s total exports. Gems and jewellery exports contribute about 15 percent to the country’s total outbound shipments. In 2013-14, the exports were to the tune of $39.5 billion while India’s total exports aggregated at about $312 billion. She said that restrictions are not only hurting the industry but has also led to sp...

WINNING STROKES: THINK DIFFERENT Photo :  Pearl Potluri Can you recognize the woman in the photo ? Yesterday, a buy call was initiated on Nifty ( 'Therefore, LIGHT long term positions may be taken, with a target of 7750 on the upside' ), after it moved above 7600 and was threatening to break the immediate resistance of 7630. Today also the buy call was continued on the Paid Blog (' There are lot of shorts in the market and the market is expected to move up further on short covering alone' ). I  hope those Premium Members who play on the Nifty Futures must have made good money, in the two days (Yesterday and today). Western India Shipyard Ltd (Rs.2.08), which came up with comparatively good results in Q1FY15, on sequential basis, surprisingly came down today also. Also, both the net and operating profit margins improved sequentially, which indicates that good days are ahead for the company. In turnaround companies, we should always look at sequential results...