SumanSpeaks: The Information Super Highway

Do you know? Reliance Communications, controlled by billionare Anil Ambani, has entered a 90-day exclusivity period for talks to combine its mobile phone services business with smaller rival Aircel. The Reliance mobile phone business is India's fourth-biggest by number of customers, while Aircel, majority owned by Malaysia's Maxis Communications, ranks fifth. Combined, the duo could overtake Vodafone's Indian business, the No. 2 by subscriber numbers. Meanwhile, in January 2016, RCom said that it would share and pool its 800MHz spectrum with Reliance Jio in 17 regions. Rcom has future plans to share 800MHz spectrum in the remaining five circles. Spectrum sharing will give Rcom access to a wider band of spectrum and Jio's network to provide faster 4G data services and provide capex and operating costs savings. RCom and Reliance Jio signed reciprocal infrastructure agreements during FY14-15 to share Rcom's 43,000 towers, 120,000km of inter-city ...

Reliance Communications Ltd: Advantage Bulls CMP: Rs.52 RCom's ownership of a pan-India spectrum in 800MHz/850MHz and its ability to offer faster 4G data services could help it fend off the competition, to some extent, according to Fitch Ratings. 4G data services could help it fend off the competition, to some extent, according to Fitch Ratings. The firm said that RCom's IDR is constrained by its weak market position as the fourth-largest telco in India with a revenue market share of around 8% and a subscriber base of mostly low-revenue customers. The top-three telcos - Bharti Airtel, Vodafone India and Idea Cellular- have been gradually gaining market share and now account for about 70% of wireless revenue in India's telecoms market. "We forecast FCF will be limited in FY17 as Rcom needs to invest around Rs 40bn (FY16: Rs 34bn - excluding a one-off spectrum payment of Rs 11bn) on capex to support its fast-growing data traffic and to improve th...

Reliance Communication Ltd: Buy CMP: Rs.52.25

Reliance Power Ltd: Buy CMP: Rs.46.50 The company’s consolidated total income from operation of Rs. 2,562.21 crore, grew by 47.97% yoy but declined 7.36% qoq. Reliance Power Q3FY16 net profit grews at 38% yoy to Rs.352 crore. Reliance Power, power generation and power distribution company, reported consolidated net profit of Rs. 351.81 crore for the quarter, registering growth of 38.26% yoy and 1.78% qoq. The company’s consolidated total income from operation of Rs. 2,562.21 crore, grew by 47.97% yoy but declined 7.36% qoq. Its core operating profit of Rs. 1,229.68 crore for the quarter, clocked growth of 95.84% yoy and 0.69% qoq. Operating Margin at 47.99%, expanded by 1173 bps yoy and 384 bps qoq. For nine months ended December 31, 2015, the company’s consolidated net profit of Rs. 1,041.79 crore for the quarter, increased by 38.56%, while total income from operations of Rs. 8096.1 crore was up by 53.68%. It’s core operating profit of Rs. 3,620.44 crore fo...

Affordable Segment to Grow --by T G Muthoot According to industry estimates, the housing shortage in India has touched 18.78 million units. As per the latest Economic Survey, there is a shortage of nearly 20 million homes in India. So, supporting the supply side is as critical as stimulating the demand side. Realising about this widening gap, the government had rolled out an ambitious programme — Housing for All by 2022 — targeting the urban areas. Rehabilitation of slum dwellers through public private partnership projects, promotion of affordable housing for weaker sections through credit linked subsidy and promotion of housing for urban poor are the elements of this initiative. The scheme will cover 4041 towns in three phases. Government effort alone cannot fill this gap. It has to provide an enabling and empowering environment where private players can come in, with ease of doing business, and support the agenda. The Budget has constructive measures to improve th...

How property buyers will gain through Real Estate Regulator Bill New Delhi, Tuesday, March 15, 2016: Once the Real Estate Regulator (Regulation and Development) Bill, pending since 2013 is passed, the realty regulator proposed in it, along with reforms, will empower and protect property buyers and investors, paving the way for more organised, fair, credible and transparent property transactions. The Indian realty industry, thus, will also become investor-friendly. A recent survey by the Ministry of Consumer Affairs, dubbed real estate sector as the second worst industry after telecom in terms of quality of service. The prevailing liquidity crisis, unaffordable property prices, high delivery defaults, tepid sales and low investor confidence has plunged the sector into crisis. In this backdrop, real estate regulatory authority-cleared by the upper house of Parliament and the main opposition, the Congress party, assuring support in ther lower house-assumes significance. It s...

Housing Development and Infrastructure Ltd: Buy CMP: Rs.70 Real Estate Bill has been approved by Parliament, bringing relief for home buyers. The proposed law makes it mandatory for all residential and commercial projects to register with the Regulator and will apply to new and ongoing projects. Once the Bill is notified, the investments in the real estate sector are expected to move up. Also early clearances might bring down the property prices, bringing more volumes for the builders. But the biggest advantage of this bill is that it is likely to eliminate bogus builders, which is positive for the established real estate developers like HDIL. Last month, HDIL reported a consolidated net profit of Rs.92.95 crore in the December quarter as against Rs. 67.29 crore in the corresponding period a year ago. Total income stood at Rs.329.09 crore in the third quarter of this fiscal year from Rs.359.48 crore in the corresponding period of the previous year. The compan...

New Offer: Sit at Home and Earn through Proxy Dear friends, now get 5-10% on your investment in equity market per month, through daily / short term share trading.  Features : 1. You need to open an account (Demat) with my recommended brokerage house (compulsory). 2. After opening the Demat (and Trading) Account, the trader/investor will have to deposit a minimum seed capital of Rs.50,000-1,00,000; which can be increased later, if you are satisfied with the performance. 3. All the profit above 10% per month will go the account of my firm. This means say in a particular month you make Rs.15,000 on Rs.100000; you have to deposit Rs.5000 in my Firm's account; your account will get Rs.10,000 (max) even if the total profit in a month is 50,000. 4. The trading will be done by me only in A-group and select B-group shares both in the cash and futures market. The profit will be calculated within the 1st week of the next month and the transaction squared off. 5. You...

BHEL: Buy CMP: Rs.106.15 Bharat Heavy Electricals (BHEL) has achieved another milestone in its After-Sales-Service business by successfully synchronizing the 110 MW Unit-7 at Barauni Thermal Power Station (TPS) in Bihar following Renovation and Modernisation (R&M). Following the successful R&M, the working life of the machine, that was first commissioned in May, 1985, has been extended by another 15-20 years. With the successful commissioning of Unit-7 at Barauni TPS, BHEL has once again showcased its inherent strength for R&M and uprating of old thermal power plants through in-house state-of-the-art technology, engineering capabilities and by incorporating the latest products/systems in renovated units.  The synchronization of this unit comes close on the heels of the successful re-commissioning of Muzaffarpur Units-1&2 (110 MW each), and uprating of Bhatinda Units-3&4 of PSPCL and Harduaganj Unit-7 of UPRVUNL, from 110 MW to 120 MW. Of the 218...

Vedanta Ltd: Buy CMP: Rs.87.35 "There may be light at the end of what has been a long, dark tunnel" for oil, says the International Energy Agency (IEA). In its latest monthly market update, the global watchdog speculates prices may indeed have bottomed when international benchmark Brent crude fell to $27 a barrel early last month. Since then, there have been signs of a natural attrition on supply and, crucially, a deal to freeze production at January levels, which could eventually rebalance a heavily oversupplied market. It pointed to outages in Iraq, Nigeria and the United Arab Emirates that took 350,000 barrels a day off the market in February alone, reports the Financial Times. Iranian production post-sanctions is also rising more gradually than expected, adding 220,000 barrels last month compared to claims it would boost output by 500,000 immediately. Overall, global supplies eased 180,000 barrels last month – and exports from high-cost exploration...

Letters from the Blog Readers... I am a regular reader of your blog and you provide very valuable information to the investors. You analyse the share perfectly. Moreover whenever we seek your advice,you always reply. I have 10**** shares of Rasoya Protein and I have 50**** shares of GVK Po wer. Whether I should hold them or sell. I can hold as long as advised. Please  reply.... Thanking you, Ketan Acharya E-mail: ketan.acharya2002@gmail.com                                  ----X---- Dear reader, thanks for your compliments. However, I shall be highly obliged if you share a part of your profit in the shares discussed here or if my suggestions have helped you to eke out some profit. It is because lot of hard work and money has to be spent to get reasonably accurate information--if you all help me in this process, then it would be of great help to me. Anyway...

Rs.500 notes: To be or Not to be....!! After my article on my blog: SumanSpeaks, titled "Why is Rs.500 note banned in state run non-AC buses"; regarding the harassments faced due to non-acceptance of Rs.500 notes in Non-AC buses in Bombay; the administration has perhaps woken up from deep slumber. On my way from Dombivli to Vashi (New  Bombay), I found this conductor accepting Rs.500 note/s.  After some initial hesitation and repeated requests he decided to pose/stand in front of my camera...Thank you gentleman, hope the erring ones will take cues from you. Now if you face such problems in Bombay toss these photos in front of them.  Hope the agencies of the state government of Maharashtra running bus services in Mumbai (Bombay), stops flouting the laws of Indian Union. Bus No: MH-43 / H-5283

New Offer: Sit at Home and Earn through Proxy Dear friends, now get 5-10% on your investment in equity market per month, through daily / short term share trading.  Features : 1. You need to open an account (Demat) with my recommended brokerage house (compulsory). 2. After opening the Demat (and Trading) Account, the trader/investor will have to deposit a minimum seed capital of Rs.50,000-1,00,000; which can be increased later, if you are satisfied with the performance. 3. All the profit above 10% per month will go the account of my firm. This means say in a particular month you make Rs.15,000 on Rs.100000; you have to deposit Rs.5000 in my Firm's account; your account will get Rs.10,000 (max) even if the total profit in a month is 50,000. 4. The trading will be done by me only in A-group and select B-group shares both in the cash and futures market. The profit will be calculated within the 1st week of the next month and the transaction squared off. 5. You h...

Jindal Steel and Power: Buy Buy Jindal Steel and Power Ltd at Rs.66-66.5, T-Rs.84+, SL--Rs.61. According to media reports, Naveen Jindal-promoted Jindal Steel & Power Limited (JSPL) is in advanced discussions with Adani Group to sell its power generating subsidiary - Jindal Power (JPL). Moreover, when most of the steel counters are moving up at this moment, then this stock should also follow the pattern---therefore strong buy recommendation .

Why is Rs.500 note banned in State Run Non-AC buses? Rs.500 note cannot be used in non-AC BEST buses Rs.500 is BANNED in Non-AC state run buses (BEST, NMMT, TMT, KDMT, etc)  in Mumbai (Bombay). These buses of sundry banners are run by various divisions of the government of Maharashtra, especially the Municipalities. The conductor simply refuses to take the note even if he/she does have change in its kitty; on the pretext that it has duplicates in the market. It is to be noted that Rs.500 note is a legal tender. Oh, is it??!! But then why is the government of India allowing even high value banking transaction with such (Rs.500) notes? Why is the government not picking them up and destroying them,  if the matter is so serious, why?? Moreover, i f there was no change for Rs.31-ticket (Mhape to Dindoshi) then the case would have been different. Isn't it? But it is a serious criminal offence, a case of public harassment. As  a fallout of this, I had to get do...

BHEL: Buy CMP: Rs.107 The public sector engineering behemoth, BHEL is looking to break out of the current ranges and is all poised to touch Rs.125-127, in the short term. Those who have missed the 2nd rally of Vedanta Ltd can try this scrip, keeping a strict stop loss of Rs.103. This is a must buy for every portfolio, as the Narendra Modi government is betting on smart cities. Coming to fundamentals it is seen that on account of the poor state of the entire power sector, BHEL’s receivables have remained high. The company’s receivables stood at Rs.35,900 crore, more than its annual revenue of Rs.30,667.63 crore in March 2015. However, its management pointed out that about 50% of it is deferred debt which will be due for collection once certain milestones are achieved and the remainder are collectibles, of which over Rs.10,000 crore are more than a year old. The Kotak Securities says FY16 will be a strong year for Bhel with orders booked at Rs.28,300 crore and the company ...

Vedanta Ltd: Book Profits Vedanta Ltd, today made a high of Rs.80.65 in the NSE, which is very near the target price given by a brokerage house.  The current price of Rs.79-80, which though has given a break out on daily chart is unlikely to sustain, as the fundamentats simply do not support the price amidst, the falling crude oil price (once again). Moreover, the  Nifty has already tested the key Resistance zone of 7320-7365 (7372.45) today. We therefore, need to see if this zone is broken by the bulls; which is unlikely at the moment, especially when the Moody's have downgraded China and the crude oil prices are again on a downward spiral. Therefore, my suggestion would be to book profit at Rs.79-80, and wait for dips around Rs.73, to enter again.