Winning Strokes

The S&P BSE Sensex is trading flat at 54,869.77 down 42.05 points (-0.04%), while Nifty was last seen at 16,343.55 down 13.25 points (-0.08%). Power, Oil & gas stocks are witnessing a buying trend. The negative global cue, continuous selling by the FIIs and US Inflation data, expected on Friday is keeping the upside capped.

However, one good point is the NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 2.15% to 19.41. 

Stay away from consumer durables and realty shares in view of government of India going tough on the inflation front. 

The prudent investors should stay put in the sectors where the demand is somewhat inelastic: Food, Power, IT, Renewable Energy, Sugar, Textiles, etc. Therefore, accumulate the shares from this space instead of burning hands in Real Estate and consumer durables.

#My recent recommendation, Future Retail Ltd (Rs.7.70) at Rs.6.70/6.80 saw it hit another buyer Freeze. We can look for good targets going forward. 

The stock of Future Retail Ltd was recommended at couple of days back, after encouraging media reports surfaced, which stated that NCLT to hear Amazon’s petition not to initiate IBC proceedings against Future Retail, on June 10.

#Buy the shares of Reliance Power Ltd (Rs.13.60) and RattanIndia Power Ltd (Rs.3.95) at their respective CMPs. The power sector is expected to do well, post lifting up of Covid - 19 restrictions and also the power demand is expected to peak due to a hot summer ahead.

Moreover, Reliance Power Ltd has done massive reduction of Debt to the tune of Rs.2,537 Cr in FY22. Debt-to-equity ratio has improved further from 2.08:1 in FY21 to 1.84:1 in FY22.

Reliance Power Ltd is a leading power generation & coal resources company. It has one of the largest portfolios of power projects in the private sector, based on coal, gas, hydro and renewable energy, with an operating portfolio of 5,945 megawatts.

Net Sales of RattanIndia Power Ltd (Rs.3.95) came at Rs 823.23 crore in March 2022, down marginally at 4.51% from Rs.862.13 crore in March 2021.

Quarterly Net Profit was at Rs. 137.29 crore in March 2022 up 117.82% from Rs. 63.03 crore in March 2021.

EBITDA stands at Rs.333.99 crore in March 2022 up 22.56% from Rs.272.52 crore in March 2021. RattanIndia Power Ltd's EPS increased to Rs.0.26 in March 2022 from Rs.0.12 in March 2021.

Subsidiaries of RATTANINDIA POWER LTD (Rs.4): 

💥Rattanindia Solar Private Limited.

💥Sinnar Thermal Power Limited.

💥Indiabullsnergy Limited.

💥Elena Power and Infrastructure Ltd.

💥Diana Energy Limited.

Meanwhile, there's a report in Financial Express that stuck power units are to resume generation soon as banks agree to extend loans. As a corollary to that plans for domestic coal-based plants such as RattanIndia Power.Ltd’s Sinnar plant & #Reliance #Power’s Vidarbha power plant are being worked out and operations may start soon. Photo: Telecom Talk.

#Today, the  shares of Vodafone Idea Ltd (Rs.9.15) made a high of Rs 9.35. Accumulate the shares as 5G Auctions are tentative for June - July period.

#The shares of Suzlon Energy Ltd (Rs.8.45) moved to Rs.8.55 during intraday. The company is expected to do well in view of the fall in Steel prices and also due to demand escalation in the power sector.

#Exit call was given in Trident Ltd (Rs.43.20) yesterday on Twitter at Rs.44.90. The stock made a low of Rs.43. Accumulate, when the price stabilises. I feel it will test Rs.37/39 ranges on the downside.

#Book profits in the shares of Coffee Day Enterprises Ltd near Rs.52.35.

#Accumulate the shares of 3i Infotech Ltd (Rs.47) near the CMP for targets of Rs.71/72.

#Accumulate the shares of Indowind Energy Ltd (Rs.14.20) with a SL of Rs.13.60.

There is an interesting bit of Information, which says: Investment in renewable energy in India reached a record $14.5 billion in the last financial year 2021-22, an increase of 125% as compared to 2020-21 and 72% over pre-pandemic 2019-20, according to a new report by Institute for Energy Economics and Financial Analysis>

Investment in renewable energy in India reached a record $14.5 billion last financial year 2021-22, an increase of 125 per cent compared to 2020-21 and 72 per cent over pre-pandemic 2019-20, according to a new report by Institute for Energy Economics and Financial Analysis.