SumanSpeaks: The Information Super Highway

WINNING STROKES: THINK DIFFERENT Yesterdays' recommendation Jindal Saw Ltd today moved to Rs.66.40 in the BSE before closing at Rs.65.95 up 11.87%. The stock is heading towards Rs.72-76 in the coming days.  Gotanjali Gems Ltd today moved to Rs.41.75 intra-day before closing at Rs.41.30 in the BSE up 4.42 % . India's gems and jewelry sector has been one of the fastest growing industries globally. The sector has contributed 6 - 7 %  to India's GDP and provides gainful employment to around 2.5 million people.  Today GMR Infrastructure Ltd closed above Rs.15.70, which is positive for the bulls. Meanwhile, the company recently announced that GMR Airports Limited (“GAL”), a subsidiary of GMR Infrastructure Limited, on March 24, 2015 entered into an agreement to acquire 24,50,00,000 shares of face value of Rs.10 each, representing 10% equity stake in Delhi International Airport Private Limited (“DIAL”) from Malaysia Airports (Mauritius) Private ...

DO YOU KNOW? A well known investment weekly has given a buy recommendation on Jindal Steel and Power Ltd at Rs.157. This makes a case to buy the shares of Jindal Saw Ltd (Rs.58.95) as both the shares, move in rhythm.  Moreover, the said publication, also recommended Srikalahasthi Pipes Ltd, the erstwhile,  Lanco Industries Ltd,   the pig iron,   iron casting &  spun pipes and cement manufacturing company  at Rs.131; in this week's edition . Meanwhile, there were recent media reports that Jindal Tubular (India) Ltd, a wholly owned subsidiary of Jindal Saw Ltd has agreed to operate and maintain certain identified facilities of PSL Limited--this is a short term arrangement for one year which may be extended or modified, based on meeting of certain covenants and mutual acceptance at the appropriate time. Besides, Jindal Saw Ltd has recently sent a press release that Jindal ITF Limited, a wholly owned subsidiary ...

Karuturi Global consolidated quarterly net rises 31.35%  Karuturi Global Ltd saw a substantial rise in consolidated net profit for the quarter ended December 2014.  During the quarter, the profit of the company rose 31.35% to Rs.103.11 million from Rs.78.50 million in the same quarter last year. Net sales for the quarter however declined 61.32% to Rs 569.81 million, compared with Rs.1,473.06 million for the prior year period. Medium term investors, should buy the shares of Karuturi Global Ltd (Rs.1.60) in all declines; for some superb returns in the coming quarters.  

Naivasha’s Karuturi seals debt buyout deal, planning comeback  NAIVASHA, March 27, 2015: Deposed Indian flower firm is planning a major comeback to Kenya next month, after entering a debt deal that would enable it retake its vast farms currently under control of its creditor CFC Stanbic Bank.  Ramakrishna Karuturi Photo : The Economic Times Karuturi, accused of evading over Sh1 billion in taxes in Kenya, has convinced one of India’s biggest lenders Axis Bank to bail it out. The flower grower billed as the World’s largest cut rose supplier at over a million stems a day, has had a tough run punctuated by employee unrest at its Naivasha farms and land grab claims in its Ethiopian sister operation.  Managing Director Ram Karuturi last week told an Indian investment analyst that his board had successfully restructured the company’s debt to pave way for the retake of the Kenyan business. “ Karuturi Global will settle the dues and get the farm back; Axis Bank...

Rabies is almost 100% Fatal: Keep away from un-vaccinated Dogs, Cats, Bats, Horses, etc .  Photo Editor : Suman Mukherjee Mumbai (Bombay) Metropolitan Region (MMR) and Navi Mumbai (New Bombay) are the Heavens for stray dogs and cats.  This has put the lives of common citizens in jeopardy, with successive state governments virtually doing very little to stop this menace.  Many people object to killing these animals rather than sterilizing them, to limit their population; giving various arguments. This is one of the major problems, faced by the BMC, to make the streets free of stray dogs and cats.  You can see that Australia is almost RABIES FREE, while look at the Asian and African Countries.....!! I think you know that dogs have a major religious significance among the Hindus in Nepal and India, particularly in Mithlanchal, North Bengal and Sikkim. The dogs are worshiped as a part of a five-day Tihar festival that falls roughly i...

NDA govt presses ahead with reform agenda  [ Editor : I know that, if this bill becomes an act, then it will give a solid push to the infrastructure of India. However, I am sure that if NDA were in opposition, then they would have done the same thing, what some of opposition parties are doing now. This is the nature of "DIRTY POLITICS", being played in India. It true but a sad fact that none of the Political Parties are concerned about India or Indians; they are more busy discrediting the other, so that they can rule for longer durations.  We should understand that "Politics is a business". And the political parties in India would do anything which will boost their "business"--this has nothing much to do with the development of a state or the country]  New Delhi: The Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) government on Friday decided to prorogue the Rajya Sabha, where it is battling st...

Immigration official at Delhi airport suspended for sexually harassing Bengaluru woman [ Editor : I am no way related to Mr.Vinod Kumar, but decided to put this news report on my main blog and not the Current Affairs blog, because the matter is pretty serious for Indian Men (or for any sane Indian citizen). Why? It is because no on knows what is the  name of the women, because the media always gives one-sided coverage for such incidents. If the name of the  man can be given, then the name of the women should also be revealed otherwise, the things do not become gender neutral. Also, it is not known whether the women in question is trying to character assassinate Mr.Vinod or not because the matter is subudice. Now look at the following disgusting comment: "First I would like to apologise (to her) on behalf of Indian government, though I am just a part of it, a small cog in the very big wheel. But the entire incident which has happened is shameful and the ...

In boost to East Asia policy, Modi to tour China, Mongolia, S Korea [ Editor : Narendra Modi's world tour on Poor Tax Payers' money continues. However, nothing much on the ground is happening, except tall talks and empty rhetorics. The Narendra Modi government is infact running most of policies of the UPA government; many of which they opposed when the BJP was in opposition] Mar 28, 2015: After his foray into the US, Australia, Europe and Indian Ocean countries, Prime Minister Narendra Modi has set his sights on the strategically-important East Asia region, dominated by China, which is also a geopolitical rival to India. Modi will undertake a three-nation tour of China, Mongolia and South Korea from May 14 to 19. According to officials, the visit is aimed at giving a boost to the East Asia policy, aligning it with Make in India initiatives and bringing momentum to the country’s foreign policy in the strategically significant regi...

Fixed cost recovery can be a mirage for power sector coal block winners  [ Editor : I have told this long back, through my numerous Facebook posts, that if the government of any country loots the power companies, in the name of auction, then the consequences would be too hard. This is a natural fall-out of wrong-governance, by Narendra Modi & Co. Anway, now I want to know the views of those in the media who were tom-toming about the low cost of power]  TUE, MAR 24 2015: Aggressive bids by power generation firms for coal blocks have got investors worried. Rating agency Crisil Ltd’s calculations show that for coal block winners who had bid the highest and have a combined capacity of 10,000 megawatts (MW), there will be cost under-recovery totalling Rs.1,350 crore in the next fiscal year. Variable cost under-recovery is estimated at around 65 paise per unit. The under-recoveries of some power companies are estimated to be even higher.  For Jaiprakash Power Ve...

WINNING STROKES: THINK DIFFERENT Karuturi Global Ltd today touched Rs.1.99 in the BSE before closing at Rs.1.83. Accumlate the scrip as much as possible, some good news regarding its overseas ventures is coming within a short time.  Sai Ramakrishna Karuturi, India's "King of Roses", made his fortune farming roses in East Africa for European markets. Now he's ploughing those profits into his next big African project: food production.  Since 1996, Karuturi’s core business has been floriculture, producing 580 million roses per year from 289 hectares of land the company leases in Kenya (154 hectares), Ethiopia (125 hectares) and India (10 hectares). In 2012, the group commanded no less than 9% of the cut rose market in Europe. Since the 2007/2008 global food crisis, Karuturi began expanding from floriculture into food production. Its plan is to set up farming operations on over one million hectares, mainly in eastern and southern Africa, to produce primarily maize, ...

Beacons of "Achche Din"...??!!  ~~- By Vivek Kaul (excerpts) Crisil Research points in a research note titled A Rs.1.4 trillion consumption kicker looms: "Sales growth in air-conditioners, washing machines and refrigerators nosedived from 18-20% in fiscal 2010 to 3-4% in fiscal 2014. Passenger vehicle sales plummeted to an average 6.2% in fiscals 2013 and 2014 compared with 29% in fiscal 2011." This clearly tells us that many people postponed the purchasing things that were not essential for everyday living.  Things have changed in the recent past. The consumer price inflation for the month of February 2015 stood at 5.4%, well below the double digit levels. Food prices remained flat during the course of the month in comparison to February 2014.  Crisil Research expects lower food inflation and lower oil prices to do the trick in pushing up private consumer expenditure growth:  "The fall in food inflation and lower fuel prices will together y...

Jewellery companies take much interest in e-commerce platform Indian e-commerce business is expected to touch around $22 billion within 3 years Mar 20 2015: There is a growing interest amongst jewellery companies to include e-commerce into their retail reach, reports say. The Indian e-commerce business is expected to touch around $22 billion in three years, and stand at about $6 billion in the current year, as per research and analyst companies, reports say. Companies are considering being part of this growth, with some already retailing online through e-commerce ventures like Amazon, Flipkart, eBay, or the India ventures like BlueStone.com and Caratlane. Recently PC Jeweller had tied-up with Blue Nile, while Tara Jewels had begun selling online through Amazon.com, reports add. Jewellery company Gitanjali Gems envisions e-commerce to occupy around 20 percent of its sales in the coming three to four years, growing from the current 1 percent, reports say. Industrialists R...

DO YOU KNOW? Granules India Ltd recommended on April 25, 2013 at Rs.112.25  made a new 52-week high of Rs.1,017.10 on 17th March, 2015. The company came out with good set of results for Q3FY15. The 9MFY15, EPS of the company stands at Rs.35.85.  The investors are therefore suggested to book at least 85% of the profits and hold the rest with a SL of Rs.840. One can invest the fund in either Jaiprakash Power Ventures Ltd (Rs.10.55) or Gitanjali Gems Ltd (Rs.45.90) for some superb gains in the next couple of  years. 

JP Power great value buy, says Prakash Diwan  CMP: Rs.10.55 Photo : Moneycontrol.com Prakash Diwan of Altamount Capital Management is of the view that Jaiprakash Power is a great value buy at the current level. Prakash Diwan of Altamount Capital Management told CNBC-TV18, "Keeping the steam on the energy side alive, Jaiprakash Power  is undergoing a lot of repair work. It has continuously had some over leverage issues. Two of the largest lenders for them, IDBI Bank  and ICICI Bank  have agreed to lend them significant quantity, Rs.5000 crore plus each and that is under the 5:25 scheme which was introduced for beleaguered power companies. The interesting part was JP Power has moved down from the Rs.28-29 all the way close to Rs.10-12, it is under-owned completely today, everybody has kind of exited with despondency saying nothing is going to happen till they divest or do something about it.  However, the repair work is finally going to help bec...

DO YOU KNOW? According to  Knight Frank, in 2014, Delhi, Mumbai, National Capital Region (or NCR), and Bangalore accounted for 70% of the new housing supply. Residential sales have declined 30% Y/Y across seven major cities in India.  There is a huge pile up of unsold housing inventory. Mumbai and NCR region will take between twelve and fourteen quarters to sell the existing inventory. Now twelve quarters means 3-years, isn't it? High prices, sticky interest rates, and cautious buyer sentiment are cited to be the key reasons for poor sales. In spite of this, real estate developers have increased prices.  Mumbai saw price hike of 10%, while the NCR witnessed a hike of 3% in 2014. High prices will keep home buyers away. The inventory pileup will put stress on the Indian banking system. Therefore, is the real estate market in Mumbai (Bombay) heading for a CRASH? T he Indian government should learn from China's housing bubble that started deflating from 2...

India overtakes US as 3rd biggest steel producer [ Editor : Most of the credit goes to the India Inc, for achieving this feat without much help from the current NDA government, after it assumed office in Delhi in 2014. The NDA government must priorities their work schedule, instead of moving haphazardly, like they are doing now. If the steel and gems & Jewelry sectors require government patronage, then it should be done immediately, without fail]  Photo : Your Article Library New Delhi,  Sunday, March 22, 2015 : India has overtaken the US to become the third-largest steel producer in the world with a production of 14.56 million tonnes (MT) in first two months of the year. India has been the fourth-largest steel producer for the past five years, behind China, Japan and the US. Data compiled by World Steel Association (WSA) showed that the country's production growth was the highest during the January-February period at 7.6 per...

Make in India push: Is it a flight of fancy? For the first 11 months of this financial year, exports of $284 billion suggest India will fall short of last year’s numbers, let alone its target of $340 billion, rues Rahul Jacob Narendra Modi at the launch  of the Make in India Mission at Vigyan Bhavan in New Delhi on Thursday. Photograph: Manvender Vashist/PTI March 19, 2015:   government’s ‘Make in India’ push seem more like a flight of fancy. Merchandise exports from India declined by 11 per cent in January and 15 per cent in February. For the first 11 months of this financial year, exports of $284 billion suggest India will fall short of last year’s numbers, let alone its target of $340 billion. Contrast this malaise with China’s double-digit increases in exports for January and February. UBS clubbed the two months together to smooth out the anomalies of the Chinese Lunar new year holidays and found exports increased 13 per cent. The colla...