SumanSpeaks: The Information Super Highway

Front Running and Swan Energy Ltd (Rs.192.15) Accumulate the stocks from distress selling.... Front-running is an illegal and unethical practice where someone trades in shares based on advance information from a broker, dealer, analyst, or other executive at a market intermediary in their personal accounts, before the trades are executed by that entity.   Photo : The Hindu BusinessLine. After the name of Swan Energy Ltd, got entangled with Quant Mutual Fund, selling has been witnessed in the counter, especially yesterday when it fell more than 4% in intraday trade, closing near the days low.  It is to be noted that around 100 stocks out of the basket consisting of 178 that are part of the portfolio of Quant Mutual Fund ended lower, post Moneycontrol's report on Sunday that mentioned SEBI's search and seizure operations on the premises of the fund house. The operation was conducted across two locations – Mumbai and Hyderabad. Quant Mutual Fund is owned by Sandeep Tand...

  Today's Calls #Buy the shares of P C Jewelers Ltd (Rs.50.40) near the CMP for targets of Rs.61/67. The company has come up with better Bottomline in March, 2024 quarter. It is raising Rs.2000 crore debt through rights issue and private placement. Photo : Just Dial. On June 26, 2024 the price of 10 grams of gold was ~Rs.72,000. Pure 24-carat gold was valued at Rs.72,220 per 10 grams, while 22-carat gold was priced at Rs.66,240 per 10 grams, indicating a drop in price. At the same time, the price of silver dropped to Rs.91,600 per kilogram. #The share of Vodafone Idea Ltd (Rs.18.04) made a new 52 - week and reached my 1st Target of Rs.18. Book some profits and wait for dips to enter. #The stock of Parshnath Developers Ltd (Rs.13.70) moved to Rs.13.80. The company came up with satisfactory March quarter results. Accumulate for targets of Rs.17/22.  #The scrip of J P Associates Ltd (Rs.9.92 ) made an intraday high of Rs.10.25 yesterday. Accumulate for targets of Rs.17/19. #Ac...

  Swan Energy Ltd (Rs.618.65): Buy Target : Rs.1000+ Time : 9 to 12 months. One of the most influential businessmen in NaMo's India is someone you likely haven't heard of much. If you search for Nikhil V. Merchant online, you'll struggle to find a photograph, profile, interview, or even a quote from the entrepreneur in his fifties. However, his close ties with Narendra Modi are well-known among the top ranks of the Bharatiya Janata Party (BJP) and its government in Delhi. Photo : Instgram . While other corporate giants make headlines, the promoter of a relatively obscure company, who is believed to have Midas touch, Swan Energy Ltd, is genuinely enjoying "Achche Din" as public sector firms eagerly seek to do business with him. Swan is led by Nikhil Merchant and his father-in-law, Navinbhai Dave, who purchased it from the Goenka group in 1991. Swan Energy Limited is an Indian business enterprise that operates in the petrochemical, textile, real estate, and energy i...

  Today's Calls #You can take fresh entry at Paytm Ltd near the CMP of Rs.404.75, T: Rs.441, SL: Rs.392.  There are media reports about Zomato Ltd (Rs.195.50) being in talks with Paytm for acquiring the latter’s movies and event ticketing business. Both the companies confirmed the development but said that the talks were at preliminary stages and no binding agreement was signed. This if happens will be a win - win situation for both the companies. If you remember, I recommended Zomato Ltd near Rs.53, which turned out to be a multibagger. There is rumour of Gautam Adani group, in talks with Paytm Ltd to take a substantial stake in the company. The Economic Times reported on June 16, 2024 that Zomato is looking to acquire Paytm’s movie booking and events unit, in a deal that may value Paytm’s vertical at around Rs.1,600-1,750 crore. Post the addition of receivables from cinema exhibitors, the valuation could go up to Rs.2,000 crore, according to that report. #The stock of Indo...

  Today's Call #Accumulate the shares of Zee Entertainment Enterprises Ltd near the CMP of Rs.155 for targets of Rs.170 and Rs.197.The short term correction seems to be over in the scrip.  #The shares of Sarthak Industries Ltd (Rs.25.50) have not moved up since a long time. This quarter results of the company is expected to be better than Q4FY24. #Accumulate the shares of Eros International Media Ltd (Rs.20.68 ) near the CMP for targets of Rs.27/31. The season of the media sector has already kicked off. #The stock of IDFC First Bank Ltd (Rs.83.40) made an intraday high of Rs.83.94. The stock was recommended around Rs.78 on Twitter (X) last week. #Buy the shares of Parsvanath Developers Ltd (Rs.14) for short term targets of Rs.19/21. If you remember, I have been recommending the scrip since it was around Rs.7/8. In the Q3FY24 the company came out with good results. The topline increased by 223.41% & the loss decreased by 89.75% YoY. As compared to the previous quarter the...

  Today's Call Buy the shares of Jaiprakash Associates Ltd (J P Associates Ltd) near the CMP of Rs.11.21, for short term targets of Rs.19/21. SL: Rs.9.70. Founded by Jaiprakash Gaur, the group experienced rapid growth from 2000 to 2006, benefiting from surges in real estate and infrastructure. Jaypee Power Ventures Ltd and the group’s engineering and construction arm, JP Associates Ltd, saw their revenues increase significantly, with annual growth rates of 26.92% and 32.08%, respectively, from 1999-2000 to 2014-15. However, during this period their debts also grew substantially, increasing by 40 times and 20 times, respectively. Recently, the Allahabad bench of the National Company Law Tribunal (NCLT) directed initiation of insolvency proceedings against debt-ridden Jaiprakash Associates (JAL). The insolvency plea against the company was filed by ICICI Bank and State Bank of India in 2018 and 2022 respectively. Pronouncing the order, a two-member NCLT bench, comprising members Prav...

Coffee Day Enterprises Ltd (Rs.57.30): Buy Coffee Day Enterprises Ltd (Rs.57.50) is engaged in the trading of coffee beans. The company owns and operates a resort and renders consultancy services. It is also engaged in the coffee business which ranges from procuring, processing and roasting coffee beans to retailing coffee to domestic and overseas customers. Coffee Day Enterprises Ltd has seven subsidiaries: 💢Coffee Day Global,  💢Tanglin Retail Reality Developments,  💢Tanglin Developments,  💢Giri Vidhyuth (India),  💢Coffee Day Hotels & Resorts,  💢Coffee Day Trading and  💢Coffee Day Econ. As per media reports, Prashant Jain, the former MD and CEO of JSW Energy, has bought a stake in in Coffee Day Enterprises Ltd, through his personal fund Tikri Investments. He picked up 40 lakh shares, translating to 1.89% stake in the company. The shares were bought at Rs.70.94 apiece, which is much higher than the CMP. Photo : Business Today.

  Today's Calls India's retail inflation, though exceeded the central bank's target of 4%, has remained within the 2-6% tolerance range for nine consecutive months. Last week, the RBI maintained the policy rate at 6.5%, indicating that interest rate cuts may be delayed as the central bank waits for inflation to stabilize. According to data from the statistics ministry, retail inflation based on the consumer price index (CPI) dropped to 4.75% in May from 4.83% in April, marking the lowest rate in a year. This moderation was driven by slower price rises in food items like meat, fish, dairy products, vegetables, and spices. Inflation has remained below 5% since March. Food inflation, which constitutes nearly 40% of the overall consumer price basket, rose 8.69% year-on-year in May, slightly down from 8.70% in April. Food prices have remained high for over a year, largely due to last year's uneven and below-normal monsoon rains. Food inflation has consistently stayed above 8...

  Today's Call Buy the shares of Dhanlaxmi Bank Ltd near the CMP of Rs.42.50, T: Rs.47, SL: Rs.37.  A non-performing asset (NPA) is a debt that remains overdue and unpaid for a specified duration.  Trendlyne Data reports that in Q4FY24, Canara Bank, Punjab & Sind Bank, Bandhan Bank, and Central Bank of India experienced the most significant reductions in NPAs. The net NPA ratio of Dhanlaxmi Bank stood at 1.25% in Q4FY24, Vs 1.27% in Q3FY24. Dhanlaxmi Bank recorded a net profit of Rs.57.82 crore for the financial year that ended on March 31 (FY24) against Rs.49.36 crore in net earnings received in the previous year. The operating profit for the period came to Rs.69.26 crore. Total business reached ₹24,687.21 crore from ₹23,205.38 crore, registering a growth of 6.39 per cent. Total Deposits reached ₹14,290.31 crore from ₹13,351.65 crore, a growth of 7.03 per cent. CASA’s share of total deposit was 30.66 per cent. Retail term deposits registered a growth of 9.17 per...

The recent 15% rise in edible oil prices in May is poised to bolster the financials of Companies like: Adani Wilmar, Emami Agrotech and Sunvin Group.   Introduction : The present surge in prices of edible oils can be attributed to a confluence of factors affecting both domestic production and international supply chains. Given that India relies on imports for around 60% of its edible oil requirements, the volatility in the global market has significant repercussions on local prices. India's dependence on imported edible oils such as palm oil, soybean oil, and sunflower oil is substantial, with these oils constituting a major portion of the market.  Causes: Soybean oil shipments from Brazil and Argentina have encountered significant disruptions due to floods in Brazil and labor strikes in Argentina. Consequently, soybean oil prices have increased by Rs.3-4 per liter. Annually, India needs to import approximately 30 lakh tonnes of soybean oil to meet its demands. The domestic ma...

Q. Why the shares of Adani Wilmar Ltd (Rs.345) didn't perform too well in the recent past and how its future look? Ans . I feel it fell primarily due to a couple of reasons, apart from other factors. 💢Adani Commodities and Lence Pte had to divest a part of their shareholding between December 26 to January 31, 2024. The two promoter entities of Adani Wilmar planned to sell up to 1.6 crore shares or 1.24% stake in the company as part of the programme to meet the minimum public shareholding norm prescribed by the SEBI. When such huge supplies come in the market all of a sudden, shares of the company are likely to fall.  💢The company was not doing well till the September quarter due to sudden fall in inventory valuations.  Now, the 1st episode is over, while the edible oil prices have stabilized in the international markets.  However, according to the Economic Times, the companies like Adani Wilmar Ltd (Rs.343.50), Emami Agrotech and Sunvin Group said while disruption of So...

  Today's Call Buy the shares of 63 Moons Technology Ltd near Rs.343/Rs.344, T: Rs.441, SL: Rs.331.  According to The Times of India: "Jignesh Shah, a notable figure in the tech industry, is making a significant comeback with a focus on new-age technology ventures. Recognized for his past disruptive contributions such as ODIN, MCX, and Energy Exchange, Shah is now poised to explore innovative tech businesses. Leveraging the momentum of the current tech wave, Shah's promoted company, 63 Moons (formerly Financial Technologies), is diversifying into cybersecurity, blockchain, and legal tech sectors. Expressing his aspirations, Shah highlighted his desire to establish India's first set of technology "decacorns," aiming for significant growth in these new ventures. Collaborating with global players like Blackberry, Resecurity, and Morphisec, 63 Moons' cybersecurity venture is making strides in introducing new products and services".  Financials : The Net...

Adani Wilmar Ltd (Rs.343.20): A screaming Buy: Adani Wilmar Ltd (AWL), incorporated in 1999 as a 50:50 joint venture between the Adani Group and Singapore’s Wilmar International is among the largest FMCG companies in India. Photo : Loksatta . By lev eraging Adani Group’s extensive port network connectivity and Wilmar’s sourcing capabilities and technical know-how, Adani Wilmar has become the leading edible oil producer in India.  It is known for its wide range of offerings in edible oils comprising soya bean, sunflower, mustard and rice bran, among others under its well known “Fortune” brand. The company has 23 plants in India, which are strategically located across 10 states, comprising 10 crushing units and 19 refineries.  Adani Wilmar Ltd is a leader in the edible oil segment and commands a market share of ~18.7% through its Fortune & other brands. Apart from the oil segment, it also offers products like wheat flour, rice, pulses & sugar under its different brands a...

  Market Mantra #Buy the shares of Adani Wilmar Ltd near the CMP of Rs.347 for targets above Rs.400, since the 4th quarter of FY25 is expected to be better than Q3FY24.  SL: Rs.330. The good news is that the union government had some months back allowed the import of edible oils at lower tax rates until March 2025. The price of the shares of Adani Wilmar went down due to sudden drop in the price of Palm oil which is affected by price movements in related crude oils; as they compete for a share in the global vegetable oils market. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. However, this is past and the company has turned around in the last quarter. In the recent months the signs of weakening demand growth, and Eight OPEC+ members led by Saudi Arabia and Russia saying they would start phasing out 2.2 million barrels per day in production cuts beginning in October, was the primary cause of fall in Brent Crude prices. Under the plan, more...

  Market Mantra #Buy the shares of P C Jewelers Ltd at Rs.47.70. T: Rs.61, SL: Rs.41.  Last month P C Jewelers Ltd informed the Exchanges that its board has approved a proposal to raise Rs.2,000 crore through rights issues and preferential allotment of fully convertible warrants. As per media reports, its board has formed a dedicated 'fund raising committee' to decide on the details.  # Indowind Energy Ltd's (Rs.22.10) Q4FY24 results beat market expectations. Indowind Energy came out with net profit of Rs.61.50 lakh for the March, 2024 quarter. It had posted a loss of Rs.25 crore in the year-ago period. The company's total income shot up to Rs.4.01 crore in the January-March period from Rs.3.93 crore in the same period a year ago. The stock should slowly move towards Rs.41/42, since the following quarter results are likely to be better, due expansion of capacity and reduction of debt. #Diagnostic Stocks would continue to do well. All my counters, Metropolis He...