SumanSpeaks: The Information Super Highway

Flash Focus: Fast Facts For Smart Investors  🌼I have taken some shares of MSP Steel and Power Ltd (Rs.42) for some of my portfolio clients. Founded in 1968, MSP Steel & Power Ltd specializes in manufacturing and selling iron and steel products, along with power generation. Its key products include premium and regular TMT bars, which are produced using advanced 3-Stage Turbo Quench Technology for strength and durability, meeting BIS 550D standards.  The company also manufactures various structural steel components such as H beams, I beams, channels, angles, and round bars, as well as ERW pipes commonly used in industries like chemical, construction, and agriculture.  MSP operates an ISO 14001:2015 certified integrated steel plant in Raigarh, Chhattisgarh, highlighting its commitment to quality and environmental standards. Financials : It came out with impressive June, 2024 quarter results:  The Net Sales in Q1FY25 came at Rs.772.00 crore in June 2024 ...

Flash Focus: Fast Facts For Smart Investors  The scrip of Zee Enterprises Entertainment Ltd (ZEEL) is looking good for investment at the CMP of Rs.121.80.  Targets : Rs.130/Rs.146/Rs.139/Rs 195.  After Rs.153, the stock will gain momentum. At the moment there is no negative news. The company would continue to get benefits from the cost cutting measures initiated by the current CEO, Puneet Goenka. #The stock of TRF Ltd (Rs.432 ) looks good at the CMP.  TRF Ltd, a Tata Enterprise, was founded in November 1962 in Jamshedpur. Equipped with a state-of-the-art manufacturing facility and a skilled design and engineering team, TRF specializes in executing complex electromechanical projects, industrial structures, and fabrication. The company also offers comprehensive lifecycle and allied services, ensuring end-to-end solutions for its clients. It services sectors like power, steel, mining, and ports. Photo : The Economic Times. Backed by the strength and support...

The U.S. Elections and India: Potential Impacts on Bilateral Relations and the Stock Market The upcoming 2024 U.S. Presidential Election is set to influence global relations significantly, particularly with respect to India. Changes in U.S. defense, trade, and strategic policies will have repercussions that extend beyond American borders, shaping India-U.S. bilateral ties amidst evolving geopolitical landscapes. As the leading global economic and military force, U.S. foreign relations, tariffs, economic strategies, and immigration policies will profoundly affect international markets and diplomacy. The election results could transform the nature of India-U.S. relations, making it crucial for both countries and the stability of global partnerships. Photo : ABC News. Potential Stock Market Impacts of Donald Trump’s Presidency: A Trump administration may initially induce market volatility due to uncertainties surrounding his policies, including the possibility of reintroducing...

Scarcity and Inflation in India Scarcity is a fundamental issue that affects every economy, including India. This brings up two essential questions: 💢How can we increase the availability of resources to meet people’s needs? 💢How do we prioritize which needs to satisfy first? What is Inflation? Inflation is the rise in the overall price level of goods and services in an economy over time, leading to a decline in purchasing power. In India, inflation can arise from demand-supply mismatches, production constraints, or changes in the money supply. Scarcity and Inflation Reducing scarcity by increasing the supply of goods and services helps control inflation by better meeting demand, which stabilizes or reduces prices. Role of the M3 Money Supply (Broad Money) in Inflation The M3 component of money supply (or "broad money") in India includes currency, demand deposits, and time deposits. When M3 grows, it increases the amount of money available in the economy, potenti...

Steel Authority of India Ltd (Rs.119.10): Buy T: Rs.175 Book Value : ₹131.08 Trailing P/E : ~23.27 Forward P/E : Estimated at 11.96. P/B : 0.97 EPS: Rs.7.42 Debt to Equity Ratio: 0.89 Price-to-Sales Ratio: 0.51 Enterprise Value/EBITDA: 4.73 Introduction:   Steel Authority of India Limited (SAIL) is a government-owned enterprise operating under the administrative control of the Ministry of Steel, Government of India. Established in 1973, SAIL is one of the largest state-owned steel-making companies in India. The Government of India holds approximately 75% of the company’s equity, making it a public sector enterprise (PSU). Photo : SAIL Products: SAIL manufactures and sells a wide range of high-quality steel products that cater to various industries, including construction, infrastructure, defense, railways, automotive, and engineering. Key product offerings include: 💢Pig Iron: Used as raw material in the steelmaking process. 💢Cold Rolled Products: Widely used in auto...

The Indian bourses are expecting a Repo Rate cut.  The RBI's Decision to Halt Short - term Inflation Predictions: A Positive Shift . To begin with, you must have observed that the Reserve Bank of India (RBI) has halted short - term inflation forecasting as of August 2023. This decision is a welcome change, given the inherent challenges of accurately predicting inflation over an extended period, especially in a volatile economy like India’s. Besides, it also encouraged hoarding of commodities, in case of higher inflation projections and vice versa; leading to the distortion of economic parameters. Moreover, unpredictable global economic factors have also made such projections less reliable and potentially misleading. Photo (edited): Business Standard. Now coming to domestic bourses: we have witnessed another round of a broad sell-off today, cutting across sectors. Even resilient stocks like NBCC weren’t spared. The stocks like Zee Entertainment Enterprises Ltd (Rs.126.2...

Zee Entertainment Enterprises Ltd (Rs. 132.46): Buy  Target Price: Rs. 195 - Rs. 220 Zee Entertainment Enterprises Limited (ZEEL) is gearing up for an exciting end to 2024 with several high-profile film releases. One of the most anticipated films is " Emergency",  directed and co-produced by Kangana Ranaut, which is tentatively set to be released by December 2024. Recently, the film received a U/A certificate from the Censor Board of Film Certification (CBFC) after implementing some required changes. Recent Film Releases:  As of October 2024, ZEEL has successfully released several films this year, including: 💢 Deva (Released on October 11, 2024) : This action-thriller stars Shahid Kapoor and Pooja Hegde, following a police officer's pursuit of a high-profile case. 💢 Savarkar : A biographical film detailing the life of Vinayak Damodar Savarkar, which highlights key events and ideologies from his life. 💢 Sky Force (Released on October 2, 2024) : Featuring Aks...

The Consumption is Taking a Hit: A Recessionary Sign? The Recent quarterly earnings analysis by CNBC Awaz, of major players like Bajaj Auto, Nestlé, and Havells highlight growing concerns of a potential slowdown in India's economy. Photo : The Times of India . While these earnings reflect a drop in consumer demand, the Reserve Bank of India (RBI) remains focused on controlling inflation within its target range of 4% ± 2%, currently aiming to keep it boxed under 5% or to be precise at 4%. The RBI's Balancing Act: Inflation and Growth: The   RBI Governor Shaktikanta Das recently reaffirmed that the central bank's primary focus remains on curbing inflation, which stood at 5.02% as of September 2024. Das has emphasized the importance of keeping inflation under control but also acknowledged the necessity of maintaining economic growth. Risks, including geopolitical tensions and climate-related disruptions, could still challenge inflation management in the coming months. However,...

Ujjivan Small Finance Bank Ltd: Buy CMP: Rs.40.15 The microfinance industry in India has witnessed strong growth, with a compound annual growth rate (CAGR) of 17% over FY20-24. Notably, the industry saw a sharp recovery in FY23-24, achieving a robust 23% CAGR during FY22-24. This resurgence was driven by high demand, bolstered by strong customer additions and improved asset quality metrics, which have reached multi-year lows. Photo : Business Today. Despite some lingering stress in the microfinance group segment, many banks are pursuing growth in a risk-calibrated manner. Although concerns around asset quality are expected to persist for the next couple of quarters, recovery is anticipated as the industry approaches the end of FY25. While the growth in group loans is likely to moderate, individual and housing loans are expected to remain key drivers of growth for banks in this sector. Ujjivan Small Finance Bank (UJJIVANSFB) looks particularly attractive in this context. Its...

Zee Entertainment Enterprises Ltd (Rs.130.40): I have taken some shares of ZEEL for my portfolio clients, with short term targets of Rs.157/161. Zee Entertainment Enterprises Ltd (ZEEL ) holds stakes in several companies, primarily in the media and entertainment sector. Here’s a breakdown of some of the key entities: Zee Learn Ltd:  Zee Entertainment Enterprises Limited (ZEEL) holds around a 16% stake in Zee Learn Limited. Both companies are part of the larger Essel Group. Siti Networks:  ZEEL was a guarantor for loans taken by Siti Networks but does not hold a direct equity stake. However, it has had to engage in settlement agreements due to financial guarantees provided. Zee Studios Ltd.:  This is a fully-owned subsidiary of ZEEL, involved in film production and distribution. India Webportal Pvt. Ltd. : ZEEL has a joint venture stake in this company, which manages digital properties. Margo Networks Pvt. Ltd.:  This is another subsidiary, focusing on content deliver...

Flash Focus: Fast Facts for Smart Investors  In the event of an Iran-Israel conflict continuing, several stocks listed on NSE/BSE could potentially benefit or be impacted due to geopolitical dynamics, especially in oil, defense, and commodities: 💢 Metal & Mining Companies: Companies like Tata Steel Ltd (Rs.165.25) and SAIL (Rs.133) may gain due to potential disruptions in the supply of commodities and higher prices for metals like aluminum and steel, which are heavily influenced by global conflicts. I have taken some shares of SAIL for my portfolio clients. 💢 Shipping & Logistics: Gujarat Pipavav Port could experience gains from increased shipping rates due to heightened risk in global supply chains and disruptions in Middle Eastern trade routes. Swan Energy Ltd (Rs.527)  also could potentially benefit from an Israel-Iran war, primarily due to its involvement in the energy and shipping sectors: 💢 LNG and Oil Storage:   Swan Energy has developed a ...

Swan Energy Ltd: A multibagger. Target: Rs.1000+ If you can remember, I had suggested a buy or I bought the shares of Swan Energy Ltd (Rs.554.55) near Rs.210/Rs.217. The stock has delivered more than 3x returns from my buy price.  Photo : Energy World. Since, the scrip has already given a mind-boggling returns over a given period, the question is: How much the stock can further move up considering the new initiatives and completion of some vital projects of the company like FRSU.  Let's explore its ventures, including its real estate projects, textile division, and LNG initiatives: Real Estate Projects and Land Bank:  Swan Energy is actively engaged in the real estate sector, particularly in prime areas of Khar-Bandra, Mumbai. The company has significant plans, with projects encompassing approximately 2 million square feet of development potential, valued at around Rs.12,000 crore. Recently, it has obtained an occupation certificate for a premium residential p...

Reliance Naval and Engineering Vs Gaden Reach Shipbuilders and Engineers Ltd 💢 Reliance Naval and Engineering Ltd (RNEL):   RNEL located in Gujarat, is India's largest private-sector shipyard with extensive infrastructure, including the largest dry dock. It spans around 210 hectares capable of building large naval ships, commercial vessels, and offshore structures. Photo : RNEL, Facebook. ☀️The fact that RNEL is engaged in the construction of both naval and commercial vessels, reflects a broader market approach. This includes specialized defense projects for the Indian Navy, as well as commercial ships. ☀️The company aims to leverage its technological capabilities to serve both markets, which has been a significant part of its operational strategy. 💢 Garden Reach Shipbuilders and Engineers Ltd (Rs.1661.90):  Garden Reach Shipbuilders and Engineers (GRSE), based in Kolkata, is a smaller shipyard with around 48.72 hectares. Though smaller in size, GRSE has a s...

Flash Focus: Fast Facts For Smart Investors  I have taken some shares of Trident Ltd (Rs.37.19) for my portfolio clients. T: Rs.52. Trident Ltd is a prominent Indian manufacturer known for its diversified portfolio in the textile, paper, and energy sectors. Established in 1990, the company is primarily recognized for its home textile products, including towels and bed linens, and has a significant presence in the yarn market. Trident has  its manufacturing facilities strategically located in Punjab and Madhya Pradesh.  The company serves a diverse customer base spanning over 75 countries across six continents, including global retail brands like Ralph Lauren, Calvin Klein, IKEA, Target, and Walmart. Trident Group, a $2 billion (market cap) global home textile manufacturer, is set to garner a larger share of the $202 billion US home furnishing market, with a focus on bed and bath linens. With 62% of its revenue generated from exports and 39% from the US market,...

Emergency: Kangana Ranaut's Film Set for Release After Legal Battles and Censor Board Modifications.. Kangana Ranaut's film Emergency  co-produced by Zee Studios and Manikarnika Films, which is Ranaut's own production company, in all probability is set to be released soon, as per my sources and media briefings. The film portrays the controversial period of the Emergency in India and features Ranaut as former Prime Minister Indira Gandhi. The latest update on Kangana Ranaut's film Emergency involves an ongoing legal issue regarding its release. During a court hearing on September 30, 2024, Zee Studios, which co-produced the film, informed the Bombay High Court that they have agreed to the modifications suggested by the Censor Board of Film Certification (CBFC).  The changes were recommended due to concerns raised, particularly by Sikh groups, about the film's portrayal of their community. The modifications include editing certain scenes, like references t...