SumanSpeaks: The Information Super Highway

How Media-Operator Unholy Nexus is active in the Indian Markets.....!! Yes, these days the business channels and print media is playing a big role in giving a casino type movement to the  Indian Stock Markets. There cannot be a 2nd opinion that Indian Markets are immature. Taking advantage of this loophole, the operators have become very active, to churn out "Money" from the Indian Markets.  Now, it is also a well known fact that most Indian investors want to earn money without much hard work and that too on their own or alone (they do not want to take the help of Paid Experts); even if their Rs.1.30 crore becomes Rs.1.30 lakhs in one year.  Anyway, these people, buy or sell whatever their "Gurus" behind the Television cameras shoot them. These so called experts have no accountability. In a day, they recommend 100s of stocks leaving most traders bewildered and confused, as to which one to buy, as the recommended counters, rhyme with the 1980s super-hit...

Rolta India Ltd: Result Update Rolta India Ltd has come up with a decent set of numbers for Q4FY16, with its Consolidated profit Zooming by 26% to Rs.59 crore on QoQ basis, mainly due to lower depreciation and amortization expenses. However, its consolidated net sales in Q4FY16, dipped marginally by only 13.7% at Rs.846 crore The information technology company had net sales of Rs.981 crore in December 2015 quarter. The depreciation and amortization expenses declined 89% to Rs 19 crore in March quarter from Rs170 crore in December quarter. However, the share nosedived by more than 7%, as the rating agencies S&P Global Rating and Fitch Ratings cut the company's credit score. S&P Global Ratings on Monday lowered its long-term corporate credit rating on Rolta India to 'CCC-' from 'B+'. At the same time, the credit rating firm lowered its long-term issue rating on the senior unsecured notes that Rolta Americas and Rolta issued to 'CCC-...

NDA Government: Report Card

Rolta Ltd: Buy CMP: Rs.72.20 Buy Rolta Ltd at Rs.72.20 for short term targets of Rs.77-79, SL--Rs.69. Rolta Ltd's Q4FY16, Consolidated PAT grew 26.3% QoQ as reported by PRNewswire.  The stock fell today as S&P Global Ratings on Monday lowered its long-term corporate credit rating to 'CCC-' from 'B+'. This is a temporary phenomenon and the stock is expected to recover very soon.  What the market has ignored till now is that, Fitch also believes that Rolta India Ltd, has a high chance of collecting these receivables because most receivables are from either government agencies or U.S.-based multi-national corporates. Therefore, this is a sure shot risk free counter at the CMP of Rs.72.20.

Mcleod Russel Ltd: Results Update The Economic Times wrote on 30 May, 2016:  Leading tea grower firm McLeod Russel reported widening of its standalone net loss at Rs.235.67 crore in the fourth quarter of the 2015-16 fiscal on higher expenses and financial cost.The Kolkata-based company had posted a net loss of Rs.207.95 crore in the same quarter previous year, it said in a BSE filing. But what the news portal missed out is to present the CONSOLIDATED RESULTS which are NOT THAT BAD. The stock reacted to the news and fell to Rs.179.80 at the time of writing this report.  The company said its EBIDTA on standalone basis was lower at Rs.82 Cr against Rs.126 Cr on substantial increase in wages during the year. The impact of price increase of Rs.2 per kg, was not sufficient to take of such increase in cost. EBIDTA cost per kg went up to Rs.167 as compared to Rs.150 per kg. This means from the following quarters the company will not have this factor this; as far as the...

WINNING STROKES: THINK DIFFERENT The State Bank of India Ltd recommended at around Rs.167-168, some weeks back, today touched Rs.203. The investors can book partial profits and enter Punjab National Bank Ltd at around Rs.77, for  targets of Rs.83-87.One can also accumulate Allahabad Bank Ltd at Rs.52-53, for a target of Rs.61; in the short term. The Punjab National Bank Ltd is the 3rd largest bank in India.  Mcleod Russel India Ltd, recommended a couple of days back in this blog at Rs.181.70, today touched Rs.186, intra-day. The stock is soon expected to cross Rs.190, due to revival of the tea sector.  Engineers India Ltd recommended around Rs.177, today touched Rs.184.50. The next target for the scrip is Rs.191, which it should achieve within a couple of weeks.   Reliance Communications Ltd recommended today at Rs.49.50, today touched Rs.50.60, intra-day. The stock should give decent returns over a period; as it shares infrastructure with Mukesh Am...

Reliance Communications Ltd: Buy CMP: Rs.49.50 T: Rs.57 SL: Rs.47 Triggers: 1. Reliance Communications is introducing 4G LTE with network partner Reliance Jio in most of its service areas. The company derives a large proportion of its revenue from wireless internet services. It also offers the cheapest voice rates in the country, and has an estimated 5 mln customers on its CDMA network. 2. Reliance Communications, the telecom firm from Anil Ambani Group, has extended the sale of its 4G SIM cards to all circles except the three southern states and Rajasthan. The states which are not getting a 4G upgrade immediately — including Karnataka, Tamil Nadu and Kerala — are among the most lucrative data markets in India. It is not clear why subscribers in these four states are not being upgraded, but part of the reason could be the presence of MTS — which is being acquired by RCom — in these areas. MTS is present in eight circles including the above four, as well as Delhi, Kolka...

Tea to turn costlier by 15% as output falls [ Editor : Last week the stock of McLeod Russel Ltd (the world's largest tea planter), was recommended in this blog at Rs.81.70, on the back of buoyancy in the tea market and due to revival of the tea sector. Meanwhile, there were media reports that:  Heat wave conditions and drought in tea growing areas in South India have hit production of the tea crop by about 10 per cent, according to planters in the region. South India accounts for 20 per cent of India's total tea production of 1,200 million kg . "April-May is one the peak season for tea production. Whatever we lose in April-May is very difficult to make up," said Peter Mathias, former president of UPASI and a tea producer in Karnataka. Mcleod Russel Ltd,  is one of the largest tea plantation companies in the world and produces around 100 million kg of tea a year from its estates in Assam and West Bengal and other estates in Vietnam, Uganda and Rwanda.  In a...

McLeod Russel India Ltd: Buy CMP: Rs.181.70 Target: Rs.205 Time: 60 days The stock of Mcleod Russel India Ltd has not taken part in the current rally. Buy the share at the CMP of Rs.181.70, for a short term target of Rs.197.  This Williamson Magor group-controlled company aims to scale up their packet tea business to become the third largest in India. There were media reports last month that inclement weather is taking a toll on people across the country, especially the North-East where tea production might be impacted owing to difficult weather conditions. While Assam has witnessed heavy rains, Darjeeling has gone through a dry spell (though the company does not have much exposure here). Speaking to Bloomberg TV India, McLeod Russel CFO Kamal Baheti says while there could be some impact of April, FY17 looks brighter than last two years. He said: "If you look at the full financial year, April produces 5 per cent of the overall production. So, the loss of cr...

Adani Enterprise Ltd: Buy CMP: Rs.71.35 Target: Rs.91 Period: 30 days Adani Enterprises Ltd, the flagship company of the Adani Group, came out with a consolidated net profit of Rs.167 crore in the March, 2016 quarter. The company said that earnings for the quarter and the fiscal year 2015-16 are not comparable with previous corresponding periods due to the demerger of ports, power and transmission businesses from Adani Enterprises from 1 April 2015. Consolidated total income from operations for the quarter was Rs.10,950 crore. The consolidated total income from operations for the fiscal year ended 31 March 2016 was Rs.44,023 crore. Consolidated profit after tax for FY16 is Rs.1,041 crore. Gautam Adani, chairman Adani Group, said, “Our portfolio of businesses across mining, Renewable energy and agro vertical benefits from vastly improved macro-economic and regulatory environment. Encouraging policy initiatives particularly in renewable space, enables us to explore...

Punjab National Bank Ltd on path to cut NPAs: MD Photo : The Economic Times May 24, 2016: Punjab National Bank Ltd ( Rs.71.95)  has already recovered Rs.1,800 crore in 54 days of Q1 FY17 against the targeted Rs.5,000 crore in the first quarter, MD and CEO Usha Ananthasubramanian said. “You must see the robustness of the bank. The bank is very solid, otherwise it would not have made Rs.12,000-crore operating profit. We would like to resolve and minimise NPAs,” she said while addressing media persons in Mumbai on Tuesday. PNB would be cautious about lending to sectors such as steel and textiles, she observed. She said that the bank was undertaking a cost-cutting exercise and expected to maintain its cost-to-income ratio just above 40% for the next couple of years.  PNB’s cost-to-income ratio for FY16 stood at 44.94% compared with 46.74% in FY15. Courtesy : The Hindu Business Line

Engineers India Ltd: Buy CMP: Rs.177 Target: Rs.185 Period: 7 days Engineers India Ltd., Navratna public-sector undertaking, will announce its financial results on May 23 for the fourth quarter ended March 31, 2016. IIFL estimates the company’s net profit to rise to Rs.91 crore at 46.1%  Q-o-Q ; however, it is likely to fall 16.7%  Y-o-Y . As per IIFL’s forecast, the company’s net revenue for Q4 FY16 is expected to soar to Rs.429 crore at 16.5%  Q-o-Q ; however, the same is likely to fall 12.2%,Y-o-Y. Operating profit margin is likely to come in at 17.5%, with a Q-o-Q rise of 700 bps and 178 bps on a  Y-o-Y  basis. Not bad results at all.  Moreover, the daily candle stick chart is giving some indication of the scrip bottoming out. In such circumstances it would be prudent to take position in the share of Engineers India Ltd at the CMP of Rs.177, for a short term target of Rs.185. SL--Rs.175 (strict). 

Do You Know? Photo : Scroll.in India’s largest public sector bank is about to get even bigger. In a move that could herald the long-awaited consolidation of India’s banks, the State Bank of India Ltd (Rs.70.50) has just taken the first step towards merging its five associate banks. The result will be a new banking behemoth with assets worth Rs.37 lakh crores – one-fifth the size of India’s gross domestic product. This will bring all of SBI’s associate banks under its fold – the bank has already merged with two of them – State Bank of Indore and State Bank of Saurashtra in the last decade. For long, experts have pointed towards the need for bank consolidation at a time when financial inclusion is rapidly expanding and small entities often don’t prove viable to execute bigger projects. Even as the bank insists that the effort is “purely exploratory” at this stage, there are signs that this might indeed turn out to be the moment of reckoning for India’s banking sector. ...

PNB moves passport authorities to stop defaulters from going abroad Photo : Slideshare.net [ Editor : The shares of Punjab National Bank  Ltd (Rs.73.30) and State Bank of India Ltd (Rs.173.25) have corrected more than it should have been. The respective Public Sector Banks (PSBs) are doing all their best to recover the bad debts and at the same time they are taking effective measures to clean up their balance sheets. Moreover, NPA does not always mean bad debt, because after 90 days of non-payment of EMIs, an account becomes NPA. These accounts could be revived or the bank with the help of new Bankruptcy law (and/or earlier  Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; also known as the Sarfaesi Act)   can settle the claims within 180 days.  Besides, lot of negatives have been said on various business channels regarding the merger of five associate banks of  State Bank of India: namely Stat...