SumanSpeaks: The Information Super Highway

Winning Strokes: Think Different Monsoon has its own charm. Even before the sky over Dalal Street got overcast, the Indian equity markets gave another round of thumbs up, to the forecast of above normal rains during the upcoming monsoon season. Moreover, better than expected inflation numbers and IIP data coupled with positive global cues also aided to, today’s smart upmove.  Idea Cellular Ltd recommended few days back at Rs.117, today touched Rs.124-plus on intra-day. The scrip closed at Rs.123.75, giving handsome gains to the investors. IRB Infrastructure recommended today at Rs.113.05 touched Rs.115-plus intra-day. The share closed at Rs.114.80 in the BSE. Reliance Infrastructure today touched Rs.555, before closing at Rs.553, on the NSE. The short term targets for the scrip are Rs.760-770.  Moreover, three day visit of the US Secretary of Defence Ash Carter to India, the second in one year, is significant in that it comes in the backdrop of ever-growing mul...

IRB Infrastructure Ltd: Buy CMP: Rs.113.05 IRB Infrastructure Ltd is basically a BOT player and hence has high margin business. Moreover, IRB's (blended) margins now stands at 52% according to some media reports. For IRB, the margins in the construction business are 35 per cent; BOT business earns over 80 per cent margins. It has an order book of Rs.10,600 crore. IRB's current revenue visibility is for the next two to three years. However, the Foreign brokerage Citi says that any fall in toll revenue growth will add to concerns on IRB's debt. Its debt-equity ratio now stands at 2.71 in FY16 as against 2.52 in FY15. You can buy the scrip at Rs.213.05, for targets of Rs.217-219-221-224-236. SL- Rs.207. Note : Today the scrip was recommended to the Paid Group members at Rs.213.05, after which it moved to Rs.215-plus; giving good Intra-day profits. I do not recommend 100 stocks in a day, resembling monthy grocery list, unlike many others. Join my se...

Do You Know..? Reliance Infrastructure Ltd’s (Rs.546.35) Mumbai power distribution business (known as Reliance Energy Ltd) distributes power to nearly three million residential, industrial and commercial consumers in Mumbai’s suburbs, covering an area of 400 sq km, and catering to a peak demand of over 1,800 MW, with revenues of Rs.7,700 crore in FY2014-15. The Mumbai power distribution business is R-Infra’s biggest, in terms of topline, and accounts for 44% of the company’s consolidated turnover, which stood at Rs.17,198 crore in 2014-15. Photo : The Economic Tmies The Reliance Infrastructure earlier signed a non-binding term sheet with Canadian pension fund Public Sector Pension Investment Board (PSP Investments) to sell 49% stake in the company’s Mumbai power generation, transmission and distribution business. While the proposed transaction is subject due diligence and regulatory approvals, the deal is likely to fetch the company Rs.3,500 crore, if concluded by H1FY16. ...

Idea Cellular Ltd: Buy CMP: Rs.117 Target: 127; SL: Rs.114.60. Period: 15 - 20 days.   Note : The scrip of Idea Cellular was recommended to the Premium Group members today at Rs.117. The stock already made an intra-day high of Rs.118.40.

Reliance Infrastructure Ltd: Buy CMP: Rs.550.20 The Union budget 2016-17,  allocated a huge amount for public investment into infrastructure.  The budgetary outlay is around Rs.2.21 trillion in infrastructure. The government did this while maintaining the fiscal deficit to ensure that government bond yields come down and the borrowing rate of the government is within manageable limits. India's infrastructure output grew an annual 5.7 percent in February, its fastest pace in at least 13 months, mainly driven by a surge in production of cement and fertilizers, government data showed on Thursday. Infrastructure accounts for nearly 38 percent of India's industrial output. Cement production last month was up 13.5 percent from a year earlier. Fertilizer output grew an annual 16.3 percent, the data showed. European cement manufacturers with a presence in India are likely to benefit if the Indian government's plans to ramp up infrastructure spending come to frui...

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...

Coal India Ltd: Buy CMP: Rs.281.30 Edelweiss's research report on Coal India: We met senior management of Coal India (CIL) to know more about the steps the company is taking to tackle the impending wage hike and meet its sales target, among other things. CIL is confident of mitigating effects of the impending wage hike and increase in clean energy cess. Further, it has maintained its production target of 598mn tonnes for FY17. CIL is targeting to reduce costs by 5% every year primarily through manpower cost rationalisation and enhancing operating and supply chain efficiencies. Our assumptions remain unchanged. We maintain ‘BUY’ with TP of INR376 (16x FY18E PE).  We believe that the company would be able to maintain its margins in FY17E led by pass through of wage hikes and volume growth. We keep our assumptions unchanged for FY17E and FY18E. The stock is trading at 12.0x and 12.5x FY17E and FY18E EPS, respectively. Maintain 'BUY/SO' with target price of INR376...

Vedanta Ltd: Buy CMP: Rs.87

DO YOU KNOW? Reliance Communications Ltd (RCOM) has entered into active infra sharing with 4G entrant Jio, which allows RCOM to offer 4G services without investing much capex. RCOM's active sharing limits its (RCOM, the anchor tenant) demand for additional towers in the near to medium term. This will save infra - cost of Reliance Communications Ltd (Rs.50.95) and will be EBIDTA positive.   Also, the RCOM has chosen to offer 4G services, by leveraging (Mukesh Ambani's) Reliance Jio’s 4G network. This is the key point which will give RCOM the much needed ammunition, to rationalize its price (call tariff and data) against the price offered by Reliance Jio and other players; giving it some advantage. Moreover, if RCOM asks for a premium from Jio for trading in 800 spectrum-band, then it can help it ward off some of the debts. Besides, the Union Cabinet has cleared liberalisation of spectrum - allocated without auction to telecom companies - at Trai recommended ...

McLeod Russell Ltd: Buy CMP: Rs.194 Target: Rs.210 SL: Rs.187. Inpoll-bound West Bengal, closure of multiple tea gardens thanks to what industry insiders claim to be due to rising labour wages, is likely to affect annual tea production this year. The Western India Tea Dealers Association (WITDA) claimed that a crop shortfall of around 50 million kg is likely by March 2017 if the crisis continues. As for impact on prices, the WITDA said that the situation would be more clear after June. India produces around 1,250 million kg of tea, of which around 200 million kg is exported. Of this Dooars produces around 325 million kg, the gardens in southern India produce around 320-330 million kg and the rest is by Assam. As such small tea growers across India produce nearly 350 millon kg of tea. Labour cost is about 60 per cent of the cost of production of tea. WITDA claimed that as the reputed Duncans Goenka Group shut down seven of its tea gardens in North Bengal, close to ...