DO YOU KNOW? Buying was witnessed across the board, yesterday and despite a negative close, advance/decline ratio remained Positive at 4:3 with Small-cap index and Bank Index closing in the green. Also, Crude oil closed at $58.58 with a gain of $1.52 yesterday. It made a new 4 month high of $59.33 after trading sideways for 7 trading sessions. Crude had crossed the supply level of $55 few days back. The next supply level is $65--thus the Bulls have good room for appreciation. This gives the Bulls enough ammunition to invest in the small cap space. Accumulate Veer Energy and Infrastructure Ltd (Rs.3.19) and Hindustan Oil Exploration Ltd (Rs.38.50) in view of the positive development in the crude oil front.
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Veer Energy and Infrastructure Ltd: The wind beneath its wings The subsidiary of Veer Energy & Infrastructure Ltd (Rs.3.17), Shruti Power Projects was sanctioned a loan of Rs.52.56 crore by the Indian Renewable Energy Development Agency last year (in parts), for setting up a 12 MW wind farm with project size of Rs.75.60 crore at Vinjalpur Village, District Khambhalia in the State of Gujarat. According to the sources, the company is expected to complete the project by August-September, 2015. This is expected to generate an additional revenue of Rs.12 Cr per annum by way of power generation. Also, from the June, 2015 quarter, there could be a slight increase in both the top and bottomlines of the company, as few ongoing projects could get completed in this quarter. Veer Energy & Infrastructure will also take the benefits, of generation based incentive (GBI) as per the policy declared by the central government in the last budget. Curre...
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Market Mantra Yesterday the Nifty rallied and closed with a gain of 72 points. Buying interest below 8200 level pulled it to 8308 and it finally settled at 8285. Bank index was the best performer which was lead by ICICI Bank. After correcting 660 points, market has witnessed buying interest at 200 DEMA support. Yesterday, the traders purchased shares across the board. Today, the Premium Members were given Buy call on Nifty at around 8,224.45 (corresponding spot price) when it was down 61.15 points or 0.74% points; for a target of 8260. Now the Nifty is trading at 8,285.15 down only 0.45 points or 0.01%. I feel most of the Paid Members made money in my Nifty call today. Meanwhile, the Hourly Trend in case of Nifty has again turned positive. Today's call: (i) Buy Veer Energy Ltd at Rs.3.30-3.40 for a target of Rs.4.9. Since the crude oil prices have started to move up, the renewal energy sector is expected to do well. (ii) Buy ...
Rolta India Ltd release detailed rebuttal to Glaucus Report rebuttal of April 23, 2015 This is a 40,000 SF Build-to-Suit office building for Rolta International. Rolta occupied the top floor and the 1st and 2nd floor were designed as "For Lease" space. Photo : M J Lant Developments, Inc MUMBAI, April 27, 2015-- Rolta India Limited (Company) is a multinational organization headquartered in India and a leading provider of innovative IT solutions for many vertical segments, including federal and state governments, defence and homeland security. The Company's equity shares have been listed on the Indian stock exchanges for 25 years; its GDRs are listed on the London Stock Exchange; and the senior notes issued by its subsidiaries in 2013 and 2014 are listed on the Singapore Stock Exchange. On April 16, 2015, Glaucus Research Group California LLC, (Glaucus), released an undated research report in relation to Bonds of the company on its website (Glaucus Report). The...
DO YOU KNOW? A report by US-based Glaucus Research said: "Rolta buys computer systems only to depreciate and dispose of them shortly thereafter for an almost total loss. Rolta claims that its 2-6 year depreciation schedule is reasonable, but fails to address evidence that Rolta appears to have fully depreciated disposed systems on an even quicker timeline (1 year in some cases)". I do not know what the management's response to this juggernaut would be; but depending on their own preferences, companies are free to choose a method to calculate the depreciation expense from among many. Or in other words, this is purely based on the motive of the company and Rolta India Ltd (Rs.121.65) might be having thier own arguments behind this move. We all know that in "Accelerated Methods", depreciation costs are written-off more quickly than the "Straight-line method". Generally, the purpose behind the former, is to "Minimize Taxable Income...
RBI Should Look Into Interest Rates: Jayant Sinha [ Editor : With INR depreciating Vs the US, it could be disastrous if the RBI goes for further Repo rate cut, unless the former stabilizes. Narendra Modi government has brought India to the brink of deflation. Now, it would be very tough to revive demand once again, unless the Finmin, works very hard. Moreover, inspite of all the hypes regarding Mr.Sinha being "...an ardent student of fund management, investments and contemporary economics" his gestures seems to be "Starkly Mediocre". In fact Narendra Modi's government is a "Parade of Mediocrity", only] Kolkata, April 25, 2015: Maintaining that higher borrowings by individuals will lead to purchase-led growth, Minister of State for Finance Jayant Sinha on Saturday said interest rates should fall and hopefully the Reserve Bank of India (RBI) will look into that. "Interest rates should fall so that higher borrowings will lead to more pur...
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Women directors: Over 2K cos yet to comply with Sebi norm Photo : www.erewise.com [ Editor : It is surprising to see, why SEBI wants to have an women director by hook and crook and why is the honourable Supreme Court of India is so silent on the matter; which is highly "Gender Biased"??!! It seems that the SEBI has forgotten to take note of "The Directive Principles of State Policy", contained in Part IV of the Constitution of India. The Forty-second Amendment, which came into force in January 1977, attempted to raise the status of the Directive Principles by stating that no law implementing any of the Directive Principles could be declared unconstitutional on the grounds that it violated any of the Fundamental Rights. This is happening due to, excessively freewheeling style of Indian democracy ] Apr 24, 2015: As many as 2,015 companies listed on the BSE and 263 on the NSE are yet to comply with market regulator Sebi's directive to appoint at least o...
DO YOU KNOW? Regarding Rolta India Ltd, the financial website: www.moneycontrol.com which is a part of the CNBC TV18 Group, said on February 24, 2015: "The company's trailing 12-month (TTM) EPS was at Rs.50.68 per share. (Dec, 2014). The stock's price-to-earnings (P/E) ratio was 2.96. The latest book value of the company is Rs.187.83 per share. At current value, the price-to-book value of the company was 0.8. The dividend yield of the company was 1.5 percent". But the same website now puts the book value as Rs.122.95 on standalone basis, while on consolidated basis it is Rs. 72.55 . therefore, the question is: how can the book value of a reputed company (Rolta India Ltd is older than Infosys Ltd) change so much in matter of couple of months? If you remember, in an earlier occasion too, this website put a misleading book value of an A-group company Rasoya Proteins Ltd. When I pointed out the same here in this blog, they corrected the same....
Signs of steel prices bottoming out a ray of hope for steel players Photo : Live Mint Ujjval Jauhari | New Delhi April 23, 2015: Metal sector has shown some promise in the recent past despite concerns on broader indices that continue to trade weak. The CNX Metal index that had fallen to one-year lows of close to 2,293 in mid-March is now trading at 2,460 levels, a gain of almost 100 points or 7%. Amongst the constituents, the ferrous players have seen some upside. Tata Steel that saw 52 week lows of Rs 311.30 on 27 March was trading at Rs 346 levels on Wednesday. JSW Steel, too, saw 52-week lows of Rs 880 on 26th March and now trades at Rs 948, while SAIL after seeing closing lows of Rs 65.75 on 9th of March has recovered to Rs 73. There are some signs of the steel stocks having bottomed out. Even though the global and domestic steel prices remain soft, there has been positive signals emanating from European demand and pricing. Goutam Chakra...
Rolta India Ltd CMP: Rs.138.90 The Company is a leading provider of innovative IT solutions for many vertical segments, including federal and state governments, defence/HLS, utilities, process, power, financial services, manufacturing, retail, and healthcare. The Company is recognized for its extensive portfolio of indigenous solutions based on field-proven Rolta IP tailored for Indian defence / HLS. By uniquely combining its expertise in the IT, engineering and geospatial domains, the Company develops exceptional IP-based cloud-ready solutions to enable its customers globally to readily exploit the power of BI, big data analytics, and IT-OT fusion. Rolta India Ltd is a multinational organization headquartered in India. It operates from over 40 locations worldwide and has executed projects in more than 45 countries. Rolta India Ltd recently announced that its eGovernance solution implementation has received the prestigious eGovernment Excel...
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WINNING STROKES: THINK DIFFERENT ADAG Company Reliance Capital Ltd today closed in the green today, at Rs.425.15, which is near its day's high of Rs.428.75. The scrip was recommended today at Rs.423-424, for a target of Rs.460.If you look at the candle stick chart, you would get the signals of trend reversal. The passage of the long-pending Insurance Bill — which has increased the cap on foreign direct investment in the insurance sector from 26% to 49% — has come as a shot in the arm for Indian insurance companies. Reliance Capital, a part of the ADAG, that has interests in insurance (life and general), asset management, consumer loans and broking businesses, stands to gain as it can now unlock value in its insurance subsidiaries by listing or transferring shares to its foreign partner. The company is among the few listed players that has significant exposure to the insurance businesses. Also, the company’s asset management business offers a good value unlocking opportunity....
Market Mantra Please Click on the Photo to Expand The Nifty which was falling continuously after a rally of 575 points since the last few days have at last found a support around 8400--8370 ranges. Yesterday, it was mentioned to the Premium Group, that if the Nifty is able to hold 8370, we could look for higher targets in the coming days. Nifty as expected bounced back from the oversold levels, today, during the intra-day trade and is now trading at 8,375.60 marginally down by 2.15 points. The Nifty had fallen 248 points last week and till yesterday the bears had an upper-hand, in absence of any fresh policy push from the GOI. In such circumstances the traders are suggested to buy Nifty futures around the support range mentioned above (corresponding to the spot levels), for a short term target of 8424-8454; where the supply is likely to come. Today's call : Buy the shares of Reliance Capital Ltd at Rs.423.60-424, for a target of Rs.460, in the short term. T...
India to register highest steel consumption growth: WSA New Delhi | April 21, 2015: India’s steel consumption growth is likely to be the highest both in current year and the next at 6.2% and 7.3%, respectively, while all other major consuming countries such as China, the US, Japan and Korea are expected to witness a sharp decline, World Steel Association (WSA) says in its first short range outlook for 2015. The short range outlook, prepared by the largest industry body’s Economic Studies Committee consisting of chief economists of over 40 member companies twice in a year, also forecast continued negative growth in consumption in China in 2015 and in 2016 due to its government’s re-balancing efforts, which has a huge bearing on the real estate market. China posted negative steel growth in 2014 for the first time since 1995. The use of steel in China shrunk by 3.3% to 710.8 MT in 2014. WSA, whose members contribute 85% of the global steel production, sees “increase...
What is the criterion of putting the shares of some companies in the T-group for weeks? I had earlier written many times about the "Brinkmanship" of the BSE and NSE officials when throwing stocks in the T-group is concerned. Hence, this writing will be no different except, that I have put the same question at the end of this write up. You must be aware that the BSE and the NSE have a unique-group called T-group, where the stocks of some companies are kept for "Correction" not for days, but sometimes for months, so that their share price probably come to the level, which has been desired by the stock exchanges. The game is governed by some hidden protocols or no one except the stock exchanges officials or their "Friends"know, when a share of a company will come out of this Jail. What is more interesting is that a particular stock starts to move up or fall down, much before the stock exchanges actually goes in for a formal declaration of puttin...
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Rolta India Ltd: Beginning of Upmove In February, the defence ministry selected a consortium of Bharat Electronics Ltd (BEL) and IT firm Rolta India as one of the two development agencies for the army’s Battlefield Management System (BMS), a project worth over Rs.50,000 crore. That was a big win for the low-profile public sector firm; the big ticket programme to provide a real-time command and control capability to fighting units is part of the defence procurement procedure’s `make’ category and will be one of the largest defence solutions to be manufactured locally. Revenue from the much-talked-about Rs.50,000 crore battlefield management system (BMS) project, is estimated to materialize from 2017-18 (FY18). Therefore, this order will be a game changer for the company. Besides, the scrip is one of the cheapest available out there — with FY16 price-earning multiple of mere seven. According to several analyst, with whom I spoke during the...
Axis Bank Ltd: "Instrument of Torture" The harassment by public/private sector banks and "Gundagardi" (hooliganism) adopted by ICICI Bank to recover bad loans is known to all. But what about Axis Bank Ltd, the bank, which many say is well managed? Bloomberg once reported: "Axis Bank Ltd. is Asia’s best-performing bank stock in the past year as it extends loans at twice the pace of Indian rivals wary of the highest stressed assets in more than a decade". But wait, the data is yet to come. Axis Bank’s restructured advances amounted to 2.37%t of net customer assets as of December 31, 2014 according to data on the company’s website. Now you can calculate the amount and I am sure it will turn out to be few thousand crore. I feel I do not have to explain what, restructuring of loan means in real terms and how money is thrown under the table to get the unsecured loans passed. Also, restructured loans in India’s banking system represented 5.94% ...
DO YOU KNOW Deutsche Bank has raised its investment recommendation on software firm Rolta India Ltd bonds to BUY from hold. The stock started to fall from around Rs.177, after a research report alleged irregularities in its financials; even as the company termed it as "malicious" attempt to pull down its stock price. Deutsche Bank raised its investment recommendation on the software firm Rolta India Ltd bonds to buy from hold a day after the company denied allegations made by short-seller Glaucus Research about fabricated capital expenditures. Deutsche said it agreed with the company's response that Glaucus had made factual errors in its report and the report had very little new information. The risk taking investors can therefore buy the scrip of the company at Rs.134-135, for a short term target of Rs.142.
India’s steel demand seen growing as Modi seeks faster investment Steel demand is expected to rise at the fastest pace in four years, benefiting top producers including Tata Steel, SAIL and JSW Steel Photo : Commodity Online Mumbai/New Delhi, April 16, 2915: India’s demand for steel, an economic growth indicator in Asia’s third-largest economy, is expected to rise at the fastest pace in four years, benefiting top producers including Tata Steel Ltd, Steel Authority of India Ltd (SAIL) and JSW Steel Ltd. Demand may expand by about 5% this year to March, according to the average of eight estimates from industry executives, government officials and analysts surveyed by Bloomberg, from 3% in the previous year. Sales will be boosted by a possible revival in stalled projects and home and vehicle purchases after India’s central bank cut interest rates. Higher demand for the alloy will help producers cope with a glut created by record imports, and the lowest prices in four yea...
Canada to Supply Uranium to India for 5 Years Under Landmark Deal [ Editor : After an absence of 40 years, Canada is once again selling uranium to India. The sanctions were a response to India’s unauthorized use of Canadian uranium to produce weapons-grade plutonium in the 1970s. The deal is a good one for Saskatoon-based Cameco Corp, which has won a lucrative five-year contract to supply more than seven million pounds of uranium concentrate to one of the few major countries intent on expanding its nuclear generating capacity. On May 18, 1974, India exploded an atomic bomb, leading Ottawa and Washington to impose the trade curbs and spawning the creation of the Nuclear Suppliers Group, which joined in the embargo and now numbers 48 countries. The restrictions were eased in 2008, after New Delhi reached a deal with Washington to continue a moratorium on tests and to accept conditions set by the International Atomic Energy Agency to ensure imports would not be...