SumanSpeaks: The Information Super Highway

TV18 Broadcast Ltd: Latest Shareholding Pattern CMP: Rs.32.70 You can see in the above photo, that both the FIIs and DIIs have increased their stake in TV18 Broadcast Ltd (A Mukesh Ambani Group company), in the September, 2015 quarter, speaking sequentially. Moreover, Rekha Rakesh Jhunjhunwala, Reliance Capital Ltd and Government Pension Fund Global are holding 2.32%, 1.21% and 2.67% of the shares of the company, respectively. Also, do you know where, Pension Funds generally put their money (invest)? Please search Internet to get the answer..... It is to be remembered that on 29 May last year, in the biggest ever deal in India's media sector, Reliance Industries acquired control in Network18 Media & Investments Ltd, including its subsidiary TV18 Broadcast Ltd, for Rs.4,000 crore. Subsequently, the company made open offers to acquire a controlling stake in media group Network18 and its subsidiaries. In January 2012, Network18 Group and Reliance Industries had joined ...

DO YOU KNOW? There has been some unconfirmed reports that Reliance Industries Ltd (Rs.943), is headed for a big bang realignment of its business model; which could be just around the corner or which could happen within the next few months--may be it will commence definitely in this quarter. Astute investors should now take their call because when a company of the size and stature is aligning its business model, pumping huge chunk of its block in a new business, it could turn out to be a jackpot. Meanwhile, the statistics say that, percentage change in Open Interest in the scrip is (-)5.69, while the price is down 1.29% at Rs.943. This gives an ideal buy signal for the stock, with a very short time price target of Rs.960.

TV18 Broadcast Ltd: Buy CMP: Rs.32.75 TV18 Broadcast Ltd. is an India-based television (TV) broadcast network. The Company offers telecommunication, broadcasting and information supply services. It operates through segments, including broadcasting and content, and film production and distribution. The broadcasting and content segment consists of television content and airtime sales. The Company offers news channels, such as CNBC-TV18, CNBC Awaaz, CNBC-TV18 Prime HD, CNN-IBN, IBN7, and IBN-Lokmat, a Marathi regional news channel. It also operates a joint venture with Viacom, Viacom18, which houses a portfolio of entertainment channels, such as Colors, Colors HD, Rishtey, MTV, MTV Indies, SONIC, Comedy Central, VH1, Nick, Nick Jr., Nick Teen and Viacom18, among others. It manages and broadcasts the channel, History TV18. It offers regional channels, such as ETV Urdu, ETV Rajasthan, ETV Bihar/Jharkhand and ETV MP/Chhattisgarh, among others. It also operates digital commerce proper...

ZEEL, Network18, TV18 collective ad spends rise 10.8% to Rs.456 crore in Q2  Oct 16,2015: The results of three of the top TV networks i.e. Zee Entertainment Enterprises Ltd. (ZEEL), Network18 and TV18 emerged recently.  While ZEEL saw very good results as its profit after tax (PAT) margin rose by 17.8%, its advertising revenues grew by 35% to Rs.843.3 crore during the quarter. TV18’s quarterly operating revenues on a consolidated basis stood at Rs.608.5 crore in Q2 FY16, up 10% YoY from Rs.553.7 crore in Q2 FY15.  Network18, on the other hand, posted a net loss of Rs.27.42 crore which is a decline in the net loss since the same quarter last year which was at Rs.36.46 crore. The total income from operations grew by 7.5% to Rs. 801.13 crore in Q2FY2016 from Rs.744.83 crore in Q2FY2015.  During the last quarter, Q1FY2016, all the three broadcast networks had posted a double-digit growth in revenues. ZEEL’s total income from operations grew by 26.6 per ...

WINNING STROKES: THINK DIFFERENT Please Click on the Photo to Expand Yesterdays' recommendation, HCC Ltd today shot up to the Rs.29.20, intra-day before closing at Rs.27.70. The scrip reached both the targets today. Join the Premium Group and make most from the stock market.............moreover, if you are having around Rs.50 lakhs to Rs.1 Crore, for investing in the equity market, do let me know....we can strike a deal with 50:50 profit sharing ratio.  The markets are on a run and this is the time to make money.....you have the money, I have the expertise---I believe both can gel and give good returns (over a period).  Today, a buy call was initiated in Vedanta Ltd, for the Mobile Group at Rs.103 and for the Web Group at Rs.104. The scrip today made an intra-day high of Rs.105.95 before closing at Rs.105.05. What is the target of the scrip? Anyway, recently, there were some media reports that Vedanta Ltd is expecting its iron ore exports from the state of Goa to...

WINNING STROKES: THINK DIFFERENT Today, a buy call was given in the shares of Hindustan Construction Company Ltd (HCC Ltd) to the Mobile Premium Group members at Rs.23.30 and to the Web Premium Group members at Rs.23.70. The scrip touched a high of Rs.25.20, intra-before closing at Rs.24.80.  The scrip is likely to cross Rs.30, within a short time.  Premium Members were today, asked to book profit in Gitanjali Gems Ltd, after it was seen that the scrip was finding difficulty to cross Rs.42. The stock touched an intra-day low of Rs.39, before closing at Rs.39.25. Rasoya Proteins Ltd today closed at Re.0.26. I will soon speak with the sources and update you about the latest developments. However, the CMD is trying all options to open the main plant, at the earliest.  My recommended Reliance Communications Ltd at Rs.72, today touched Rs.82.70, before closing at Rs.80.50. Now what to do with this scrip....? These days, unless you are an expert in the equity market...

Announcement Photo : Tricks Machine After speaking with various market participants I have understood (discovered) that these days it has become very difficult to make money consistently (from the equity markets) without proper guidance; because the market is now in control of HIGHLY PROFESSIONAL INDIVIDUALS, which included MBA (Finances), MBA (Investments), Chartered Accountants, Cost Accountants, Company Lawyers, Engineers with MBAs and so on...... In  view of this I am starting a new type of Premium Service, where you would get BUY/SELL calls directly on your mobiles during the market hours. There will be a little phase lag, between the calls sent to the Mobile Group and Web Group. Hence, the charges for the Mobile Premium Group will be a little higher than the latter. Those who want to register for this kind of Paid Service, kindly send me a mail at: suman2005s@rediffmail.com or sumanm2007s@gmail.com. The calls will be based both on the Fundamentals and Chart...

Gitanjali Gems Ltd: Waiting for a blast to happen...... The platform - India Leadership Conclave 2015, under the flagship brand of Media property Network 7 Media Group announced Nakshatra, a flagship brand of Gitanjali Group as a winner in the “India’s Most Admired & Valuable Jewellery Brand 2015” category and Mr.Nehal Modi, CEO, Gitanjali USA & Samuels Jewelers Inc. as the “Emerging Entrepreneur of the year 2015”. The winners were chosen by a selection committee review process that included representatives from government, the industry and general public at large. The questions were posed to 1254 HNI in Tier 1 & Tier 2 Cities. Meanwhile, the Hindu Business Line, 16 October, 2015 writes: Gold prices remain firm at 3-1/2 month highs on Friday at the international market, thanks to a recovering dollar. Spot gold was ruling firm at $1,182.73 an ounce at 7 pm IST. In the Mumbai bullion market, standard gold (99.5 purity) closed at Rs.26,895 per 10 grams....

Solid comeback…Sensex shuts above 27,000 mark Commenting on the same, Amar Ambani, Head of Research, IIFL, said, “LIC Housing Finance’s Q2 FY16 performance was stronger-than-expected with robust NII growth of 34% yoy and net profit increasing by 19% yoy. A combination of brisk loan growth, margin expansion and stable credit cost should drive significant earnings growth for the company over the next couple of years. RoA is estimated to improve materially from the current cyclical low of 1.3%. Valuation at 2.2x FY17E P/BV remains attractive in the above context. October 15, 2015: After being under pressure for the past three trading session, the Indian equity market made a smart comeback. Indices closed near day’s high with the Nifty just managing to close near the 8,200 mark while Sensex closed above 27,000 levels. Today’s rally was led by auto stocks, followed by metals, oil & gas, capital goods and power stocks. Even the mid-cap and the small-cap stocks participated in tod...

Does Investing in Gold Make Sense? October 14, 2015: For many of us, purchasing gold coins during Diwali is considered auspicious. So it begs the question: does it really make sense to invest in gold? Historical Gold Trends Generally speaking, gold has been regarded a safe haven for many people. In recent years, gold prices have been volatile. In 2013, the gold price dropped more than 25%!  Looking at the chart above, you can see that if you invested $1 in gold in 1802, its value would be $3.21 in 2013, a mere 0.6% increase. Stocks, by comparison, would turn your $1 investment from 1802 to $930,550 in 2013. Does this mean investing in gold is a bad idea? Not necessarily. Given the right economic conditions, gold can be a great investment! The key is to have the right mix of investments, gold being one of them.   How is Gold Priced? Gold prices are fixed twice daily in US Dollars by the London Bullion Market Association (LBMA). There are ten p...

Gitanjali Gems Ltd: Turns Bullish... A buy call was given on Gitanjali Gems Ltd, a couple of days back, for a short term target of Rs.45; after the Index of Industrial Production (IIP) rose 6.4% in August, compared with 4.1% in July and 0.5% in August last year, data from the statistics office showed on Monday---a mong sectors, gems and jewelry, electricity, mining and apparel contributed to growth while steel and instant food mixes were the slowest growing.  The company's outstanding debt as on March 31 was Rs 8,715 crore, while the reserves and surplus was Rs.4018 Cr, as per the Economic Times, 3 June, 2015 .  It is to be noted that the bullishness of the gems and jewelry sector increases with any rise in GDP.   The Book Value of the shares of Gitanjali Gems Ltd is Rs. 292.67 while its market cap is ONLY Rs. 379.73 Cr. Its P/E is 1 4.23, as compared to the Industry P/E of  35.84. Today, the shares of Gitanjali Gems Ltd closed at Rs. 38.70 (BS...

DO YOU KNOW? Photo : Sahul Trading Raising serious concern on the huge upsurge in the prices of soyabean futures,  which in turn is leading to increase in physical soybean prices as well, the Soyabean Processors Association of India (SOPA) has urged the Securities Exchange Board of India (Sebi) to immediately put a stop to futures trading in soyabean seed. In a letter to Sebi Chairman UK Sinha, chairman, SOPA has alleged that ‘unscrupulous operators’ are rigging prices of the commodity which has hit the processing industry. Rampant speculative activity by a few vested interests has made it prone to their market domination and genuine players have been sidelined, the body said. The speculation is not only ruining the soyabean industry but also adversely affecting domestic users in  poultry,  fisheries and aquaculture and livestock feed industry, which are major feed users, SOPA has stated in the letter. The upward price movement between September 1, 2015 an...

Soyabean futures up on global cues Photo : Geewinexim NEW DELHI, 14 Oct, 2015: Soyabean prices spurted by Rs 74 to Rs 3,947 per quintal in future trading today as speculators enlarged positions, supported by rising demand at the physical markets.  At the National Commodity and Derivatives Exchange, soyabean for delivery in October flared up by Rs 74, or 1.91 per cent, to Rs 3,947 per quintal, in an open interest of 5,040 lots.  Also, soyabean for most-active November delivery spurted Rs 73, or 1.88 per cent, to Rs 3,950 per quintal and an open interest stood of 81,650 lots.  Marketmen attributed rise in soyabean futures to strong demand at the domestic spot market. 

DO YOU KNOW? The face value of the shares of the Gems and Jewelry company, Rajesh Exports Ltd is Re.1 (one) and the share is being traded at a whooping price of Rs.636.85, which means for Rs.10, FV, the share should trade at Rs.6368.5.  In comparison Gitanjali Gems Ltd has a face value of Rs.10 and is now trading at Rs.39. Moreover, the P/E of Gitanjali Gems Ltd (Rs.39) is only 14.26 as compared to 60.38 of Rajesh Exports Ltd. The industry P/E is meanwhile is placed at 35.84.  This means that, even if Gitanjali Gems Ltd gets a decent P/E of 20, then the share price should cross Rs.50, in the short term. Therefore, investing in Gitanjali Gems Ltd even at the current price of Rs.39, looks more appropriate and risk free than investing in the shares of Rajesh Exports Ltd.  However, on the flip side, Rajesh Exports Limited (REL) is a ZERO DEBT COMPANY company which over the years, has grown to be the largest gold jewellery manufacturing company in the world....

Gold ornaments a craze this festive season If the trend in the city is any thing to by, the sale of light gold ornaments will take over that of bullion this festive season.  Photo : www.lalithathangamaaligai.com Oct 14, 2015:   Steep fluctuations in gold prices over the past six months--gold has seen a high of Rs 28,000 and a low of Rs 25,400 per 10 gm have made consumers extremely jittery about investment. Light jewellery for ornamental purpose is more in demand than long term investment in gold. Ravindra Nath Rastogi, president of Lucknow Saraffa Association, said, "People are only buying required amounts of gold for weddings and festivals but are hesitant in making big investments in the yellow metal mainly because of the uncertainty over gold prices." He explained that people were in the `wait and watch' mode hoping for prices to fall further for hoarding bullion. India imports gold mainly from Israel, South Africa and Switzerland. Gold traders say C...

Q2 gold imports at 3-quarter high October 10, 2015: In the quarter ended September this year, gold imports jumped to a three-quarter high of an estimated 262.2 tonnes, owing to lower prices and higher import of dore gold, or unrefined gold, by refineries. Observers say the trend suggests "import is returning to the normal prevailing three years ago". In the quarter ended December last year, imports stood at 292 tonnes, while the previous high was in the June 2013 quarter (333.6 tonnes). In the September quarter this year, demand was high, as prices started falling since July-end, before being quoted at $1,072 an ounce at a global level and Rs 25,000/10g in Mumbai. Currently, gold is quoted at a discount of $6 an ounce to the cost of import. An analyst tracking gold imports said, "Several gold refineries are jacking up capacities to benefit from the two per cent lower import duty on dore gold." Dore attracts eight per cent import duty and value additi...

Gitanjali Gems Ltd: Buy CMP: Rs.36.30 Gitanjali Gems Ltd has shown stellar performance in Q1FY16. The company's consolidated Q1 net for the quarter ended June 2015 nearly tripled to Rs.28.05 Cr when compared with Rs.10.15 crore in the corresponding quarter a year ago. Total income also surged by nearly 42% to Rs.2,952 Cr in Q1FY16 from Rs.2,082 Cr in Q1FY15. Moreover, there was a recent report PwC which mentioned that, Indo-US tie-up in the gems and jewellery sector can be a win-win situation for both the countries; as on one hand the jewelry hubs can serve as captive production units for US retailers and on the other hand Indian manufacturers can benefit from the global expertise of their US counterparts. Few months back, Gitanjali Gems Ltd announced a major restructuring of its business to create better synergy within group companies, bring down costs and improve cash flows for "unlocking value in future".  The company at present is consolidating i...

Hindalco Industries Ltd: Buy CMP: Rs.83.65 The stock  is showing strong  bullish trends after crossing Rs.79 on the upside. Today the scrip tried to cross the resistance zone of Rs.84.50-84.60....... Moreover, when Vedanta Ltd, a peer group company,  closed at Rs.103.60, up more than 10%, then Hindalco Industries Ltd (Rs.83.65) shouldn't (or cannot) be far behind.  A weak rupee will benefit the company. Also, any hike in import duty (from 5-10 per cent) as demanded by the industry should help.  Long-term positives Hindalco’s long-term prospects, however, remain strong. Its copper segment, which contributes about 15% of operating profits, faced revenue pressure from falling metal prices. However, thanks to better smelting margins, profits improved Y-o-Y in the June quarter by 8%. This segment should see consistent growth as refining margins are expected to be robust. Its Utkal alumina refinery plant — among the low-cost plants globally — is operating ...

Rising consumption likely to keep soyabean oil prices, exports steady Oct 04 2015: The Union cabinet last week extended the period of the “control order” for pulses, edible oils and oilseeds by a year more. “The government has now decided to extend it (control order) till September 30, 2016. This would enable the state governments to take appropriate steps to ensure supply of these essential food items without any problem,” Union communications and information technology minister Ravi Shankar Prasad told mediapersons after the cabinet meeting. Soyabean production in the country is expected to be nortmal this year at 10.7 million tonne after it touched a record high of 11.9 million tonne in 2013-14. The monsoon has been favo­urable for the crop in Madhya Pradesh, Rajasthan and Gujarat, major producers of the commodity. On average, Madhya Pradesh produces 74 per cent of India’s total soya bean crop and Rajasthan, 10 per cent. The stock levels too are high because of lower crushing ...

Aluminium producers demand safeguard duty on imports BHUBANESHWAR, 6 Oct, 2015: Domestic aluminium producers such as Vedanta, Hindalco and Nalco are urging the government to impose a safeguard duty on aluminium imports as was done in the case of some steel products, due to falling international prices and increasing production costs. Aluminium Association India (AAI) representatives plan to meet revenue secretary Hasmukh Adhia on Friday to push their case. "We are confident of taking up our case of safeguard duty on specific aluminium products, which is in line with what the government has done for the steel industry," said Abhijit Pati, CEO at Vedanta Aluminium. The Narendra Modi government had recently imposed a 20% provisional safeguard duty on hot-rolled flat steel products for 200 days. AAI said aluminium deserves to be treated as a core industry, at par with steel. At present, imports account for 55% of aluminium consumption in the country. Prices of the aluminium...