WINNING STROKES

Yesterday, MBL Infrastructure Ltd hit the buyer freeze at Rs.29.50. The stock was repeatedly recommended in this blog for a target of Rs.110-plus. It will give you multibagger returns going forward, so please don't sell the scrip in a hurry. The company, couple of years back has forayed into Ports  Inland Waterways and looks to get orders from this sector too. 

It is pertinent to mention here that the government on Wednesday formed a ministerial committee headed by finance minister Arun Jaitley to decide what to do with old, pre-existing projects in ports, which have become unviable.  The government wants to address this legal tangle. The combined value of the projects is an estimated Rs.20,000 crore, shipping ministry officials said. 

According to the revised MCA, developers can exit a project by way of divesting equity up to 100 per cent after completion of two years from the COD. Under the extant contracts, the developer can exit all but 26 per cent stake after three years from COD. In another measure that would help cut costs, rent on “additional land” has been reduced from 200 per cent to 120 per cent of the applicable scale of rates. 

MBL Infrastructure Ltd is into following verticals and hence has an immense chance to grow, after the recent amendment in the IBA by the NDA government:

#Highway Construction, Operation & Maintenance

#Highway-BOT Projects

#Railways/Metro

#Housing Infrastructure

#Urban Infrastructure

#Industrial Infrastructure

#Inland Waterways/Ports

Around 10 million Indians migrate to cities each year. As per the World Economic Forum, India’s urban population is expected to almost double to 814 million between 2014 and 2050. In FY15, the estimated housing shortage in urban areas was 18.78 mn houses. As per a World Economic Forum report, there is an estimated ‘US$110 billion funding gap that could hinder India’s ability to provide basic urban infrastructure and services to its rapidly growing urban population.’ The present urban infrastructure is inadequate to address urban population demands. This provides the company with a huge opportunity into the sector. 

Dena Bank Ltd recommended around Rs.24.40 some weeks back, yesterday made a high of Rs.27.80 and closed at Rs.26.95, reaching the 1st target of Rs.27. We can look forward for targets of Rs.31-32 in the coming days. 

Simplex Projects Ltd recommended in this blog last month, yesterday hit the Buyer Freeze at Rs.47. We can look for short term targets of Rs.51-52, in the coming few weeks. Stay put.

Yesterday, the stock was United Bank of India Ltd was recommended to my BMA Wealth Creators Ltd's active clients and also to the Premium Members at Rs.18.30. Yesterday, the scrip touched an intraday high of Rs.19. We can look for short term targets of Rs.21-22 in the coming  days, upon breaking of the resistance zone of Rs.19.20-19.50. I will probably be recommending another stock today, hence keep an eye on the blog postings. 

The scrip of Suzlon Energy Ltd recommended in this blog around Rs.13.60, is finding difficulty to cross the resistance zone of Rs.16.50-17. But as long as it is in the zone of Rs.15.70-15.90, bulls still can hope of higher targets. Moreover, with the crude oil on the boil, it is likely that the renewable energy stocks will gain more currency in the coming days. 

Aban Offshore Ltd recommended several times in this blog starting from Rs.178, yesterday made a high of Rs.212.8. You can hold the stock with next targets of Rs.117-120; SL: Rs.104.

Those who had bought the shares of Prajay Engineers Syndicate Ltd at around Rs.10-11, or  those of my old clients who have averaged the scrip to around the same levels, can look for targets Rs.19-19.50 in the coming days. You will probably be happy to know that the stock has given a 5 year high on the daily candle stick chart. Though, I feel the momentum is likely to continue but still it would be prudent if you maintain a strict SL of Rs.16 and keep holding; for  higher targets in the coming weeks, as the government of India  is giving huge stress on affordable housing projects, apart from the SMART CITY projects. Don't forget this please.....!!

The scrip of Housing Development & Infrastructure Ltd (HDIL) is consolidating around the current  price of Rs.62 and is preparing for the next round of upmove to Rs.84-91. The developer had land reserves of 200.47 million quarter feet as of September 30, 2016. It boasts of being the owner of largest land bank in the Mumbai Metropolitan Region.  HDIL therrefore, is one of the cheapest stocks (P/B) in the Real Estate sector. Debt concerns for HDIL have eased over the past three quarters and the Cash Generation from core operations has been improving. Progress on asset sales would be the key to watch out for and it would help sort the cash flow/execution issues. Approvals for new launches are progressing well and the company has a good launch pipeline going for FY19. A leading brokerage house noted HDIL’s balance sheet cost of land is at 50-70% lower than the current market value. HDIL has already forayed into the affordable housing segment and it expects margins to be above 30%, in this segment.
The stock of HDIL which closed at Rs.62.15 yesterday, is more than 80% lower than its 7-year high price and more than 95% lower than its all-time high price level of Rs.1,113, it hit on January 8, 2008 You should accumulate this A-group company in intraday dips and keep holding.

The shares of Videocon Industries Ltd which was recommended at various price levels, the recent being around Rs.12.50, has been hitting the upper circuits since some time. If this trend continues then we can look for targets of Rs.27-31 in the coming days. However, this is a circuit stock so be careful, to book profit at the correct juncture. It closed ate Rs.23.65 in the BSE.

I am increasing the subscription charge of my Premium Services to Rs.18,000 per year from 16th January, 2017. So, rush for further details on the same at: suman2005s@rediffmail.com or sumanm2007s@gmail.com.