Premier Explosives in strategic radar

CMP: Rs.41.50

[An old news but has got lot of weight]

Some fund managers have started taking a serious look at the Premier Explosives counter. According to market circles, the stock, which had attracted lukewarm interest from the domestic and overseas institutions in the recent years, has come under research focus for a number of fund houses because of change in its business dynamics. The company, one of the three in the country manufacturing the entire range of explosives and accessories for the civil/industrial requirement, is poised to become a defence/strategic industry supplier through capacity expansion, including missile fuel. Premier would supply the fuel at a higher than normal margin and an undisclosed quantity to Satish Dhawan Space Centre, Sriharikota (SHAR). It also obtained a 10-year Rs 7 crore per annum renewable O&M contract from SHAR for its second propellant plant. (The margins for the defence deals are very high and this is reflected in the December, 2007 results when the net profits almost remained the same inspite of the sell of the mushroom division and clocking less net turnover). Mr A.N. Gupta, Vice-Chairman and MD, confirmed to Business Line from Hyderabad the developments regarding missile fuel, but declined to detail because of “strategic” reasons. He said that Premier, which already produces the fuel, would double its capacity in about two years. For the new project, it has already bought 150 acres of land off Hyderabad, near its existing plant, and purchase of another 100 acres from Indian Space Research Organisation at a subsidised rate would be complete in next three months (This has been aleady completed). The complete capex plan would be ready by six months, he added (This is also ready now). Premier has two overseas joint ventures in Turkey and Georgia (Both the Units started Commercial Productions and the company is getting overseas clients for the same). It also has 30 per cent equity interest in Premier Explochem, an explosive manufacturing outfit in Nashik. During FY 2004-05, it had hived off an explosives outfit as part of refocusing strategy. It also sold its Mushroom division assets for Rs 17.50 crore in April this year (The Company has reduced the interest burden with the money thus obtained and this is amply reflected in December, 2007 quarter results). (It is now a pure Defence Related company and is on its way of curving out a niche for itself). SO WHAT IS THE MANTRA NOW: JUST ACCUMULATE BEFORE IT RACES PAST Rs.60 mark once again. Just compare it with Solar Explosives Ltd and you will understand what I am saying.

Note: MY additions in the above write-up are given in coloured lines and in Brackets(Braces)....

Sensex opens below 13,700, the markets trade weak: Hold on to Southern Online Bio Technologies Ltd and Premier Explosives Ltd:Dhoot Industrial Finance Ltd hits the buyer Freeze: U can add some of my recommended picks in a staggered way on all declines: Since Premier Explosives is holding only 30 % shares of Premier Explochem Ltd, and is not directly related to the latter, and hence, the former(Premier Explosives) will not have any major impact on its bottomlines. Moreover, all the companies are generally,compulsorily Insured for any such mishaps and hence my point is doubly insured: It seems now that most of the companies in the Small & Micro-cap space are interested in publishing the results in June, 2007, to avoid the May Carnage; if any: Concentrate on Telecom sector and to certain extent on select metal counters:

The market opened weak as profit booking continued for the third straight session, pulling the Sensex below the 13,700 mark. At 10:09 IST, the Sensex was down 69.66 points to 13,694.75. It opened lower at 13,709.95, and touched a low of 13,679.76. Its high for the day so far was 13,745.60.Among the Sensex pack, 24 of the 30 components declined. The total turnover on BSE amounted to Rs 338 crore. The market breadth was negative with 546 shares advancing as compared to 793 that declined. PSU oil exploration major ONGC was the top loser, down 2.42% to Rs 899.90 on 72,544 shares. Ranbaxy (down 1.67% to Rs 382.20), Bharti Airtel (down 1.46% to Rs 804), and ACC (down 0.65% to Rs 879.90) were the other losers Index heavyweight Reliance Industries (RIL) declined 0.16% to Rs 1591.10 on 51,316 shares. Tata Steel was the top gainer, up 0.70% to Rs 557 on 1.37 lakh shares. Hero Honda (up 0.65% to Rs 684), Wipro (up 0.59% to Rs 549.50), and REL (up 0.26% to Rs 506.95), followed. Fortis Healthcare, which listed today, was hovering at Rs 105.90 in early trade, a discount of 1.9% over the IPO price of Rs 108. The stock debuted at Rs 105, which was also its low so far. It hit a high of Rs 109.10. 10.2 lakh shares changed hands in the counter on BSE. Fortis Healthcare had priced its 4.59-crore equity shares at Rs 108. The price band for the IPO was Rs 92 to Rs 110 per share. The issue, which had opened for subscription on April 16, 2007 and closed on April 20, 2007, was subscribed 2.78 times. The qualified institutional buyers (QIB) portion was subscribed 2.72 times, non-institutional portion 1.74 times and the retail portion 3.26 times Asian shares were flat on Wednesday, halting a recent strong run. Caution ahead of the outcome of the meeting of the US Federeal Reserve and rebound in oil prices kept a lid on Asian markets. US stocks closed flat on Tuesday as investors locked in profits after five straight sessions of gains in blue chips, a day before Fed's meeting on interest-rate policy. The Dow Jones industrial average dipped 3.90 points, or 0.03%, to end at 13,309.07, after falling as much as 75 points. The Standard & Poor's 500 Index slipped 1.76 points, or 0.12%, to finish at 1,507.72. But the Nasdaq Composite Index edged up 0.80 point, or 0.03%, to close at 2,571.75. While no one expects a rate move by the Fed, when it meets on Wednesday, investors are keenly awaiting the US central bank's latest assessment of the world's biggest economy. The Bank of England is seen lifting rates to 5.5% on Thursday, a move that would put British interest rates above those in the US for the first time since January 2006. The European Central bank (ECB) is expected to hold its rates steady at 3.75% on Thursday, but signal a hike in June. A spate of merger and acquisition activity as well as increasingly eye-popping takeover bids have helped propel many global indices to record highs in recent days, supporting the view that the bull market has to run further. FIIs remained in buying mode on the bourses on Monday, 7 May. FIIs were net buyers of Rs 96.70 crore of equities on Monday,7 May. But this was lower than the inflow of Rs 212 crore on Friday, 4 May. As per provisional data, FIIs were net sellers of Rs 205-crore equities on 8 May 2007, the day the Sensex lost 114 points. Domestic institutional investors were net sellers of Rs 124.54-crore equities on Tuesday, 8 May. Oil prices rebounded to above $65 a barrel on Wednesday, 9 May, as new attacks on Nigeria's oil industry deepened supply losses, interrupting a six-session losing streak that had driven prices to their lowest level since 26 March. London Brent crude was up 6 cents to $65.60 a barrel.

WINNING STROKES: THINK DIFFERENT:

[Updated]

My recommended CHD Developers Ltd (BSE Code: 526917) hit the buyer freeze. It launched a project named as CHD Lifestyle Independent Floors as part of its mega integrated township project CHD City at Karnal. Lifestyle Floors are "Stylish, Comfortable and Affordable" and further step to show Company's commitment to provide affordable housing.

Sicagen India Ltd hit the buyer freeeze in the afternoon trade before cooling down a bit. The company came out with superb bottomline on Q-o-Q basis, beating market expectations. The future results will be good as the sector in which the company is performing (Auto and Construction or Building Materials), has started to look up. The company's drum making venture will also give good returns. A stock which will give you multi-bagger returns going forward.

My recommended Varun Industries Ltd have become more than double in just 3 months time frame. Yesterday, also it hit the buyer freeze.

XL Telecom and Energy, Ennore Coke Ltd and Glory Polyfilms Ltd are expected to come up with results today. If the results are good then all these stocks could start hitting the buyer freezes. In case of Ennore Coke Ltd, the topline would be good but I am a little apprehensive about the bottomline.

Phoenix International Ltd hit the buyer freeze before cooling down a bit. The company has leased its 5 lakh sq. ft of land to a reputed company and hence now there is no problem of bounced cheques. Besides the fact that its group company Focus Energy Ltd is starting gas production from FY10, augurs well for the company. The company has huge land holding in Chennai (Madras)which will be used a shoe park.

Northgate Technologies Ltd, Shreyas Shipping and Logistics Ltd (CMP: Rs.31.15), Sunil High Tech (CMP: Rs.150.95), etc should do well going forward and hence try to accumulate them on declines for 12-18 months time frame. Sunil High Tech Engineers Ltd was earlier recommended around Rs.55-56 ranges and asked to accumulate when it was going down.

Northgate Technologies Ltd is the owner of http://www.bharatstudent.com/, which is ranked 3rd (third) after http://www.orkut.com/ and http://www.facebook.com/ among the Indians. For more on the company please visit: http://www.northgatetech.com.

My old favourite Premier Explosives Ltd (CMP: Rs.36) came out with superb results for the Q1FY10. The total income of the company for Q1FY10 came out to be Rs.23.45 Cr as against Rs.15.14 Cr in Q1FY09. The net profit of the company for Q1FY10 came out to be whooping, Rs.1.42 Cr as against Rs.64.8 lakhs in the same period previous year. The EPS of the company for Q1FY10 alone is Rs.1.75. Moreover while the operating profit margin remained flat, the net profit margin increased in Q1FY10 to 6.16% as against 4.28% in the same period previous year. The cash EPS is now a whooping Rs.2.13 as against Rs..1.16 in the same period previous year. The company's overseas ventures are going great guns . The company get substantial amount of revenues from the Cement Companies and since the cement sector is looking great Premier Explosives Ltd is expected to cross Rs.100 in the near future; more so because its equity capital is only Rs.8.12 Cr. The company is also into defence deals and has good order book position as of 30th June, 2009. The allocation of more funds in the defence budget (Union Budget, FY10) is positive for the company.

For more on Premier Explosives Ltd, please visit: http://www.pelgel.com

Ritesh Properties and Industries Ltd is now into real estate sector apart from being a garment exporter (Textile sector). Recently the company has marked its foray in realty sector by entering into a joint venture agreement with developers Ansal Properties and Infrastructure (API) for developing a premium housing project and a business park in Ludhiana. The land is located at a prime location on Ludhiana-Chandigarh state highway. The total projected revenue will be about Rs.800 crs. The project, christened as Hampton Court spreads across 42 acres on the Ludhiana-Chandigarh road, well within the municipal limits of Ludhiana city. Initial work on the project has already started. A multi-bagger in the making. For more on it please visit: http://www.riteshindustries.us

Strong Q1 June 2009 earnings from State Bank of India (SBI) and Mahindra & Mahindra (M&M) and firm global stocks helped the key benchmark indices snap a three day losing streak. A recovery in Chinese shares after Wednesday's (29 July 2009)'s 5% slide helped soothe investors' nerves. The BSE 30-share Sensex jumped 214.50 points or 1.41%, up close to 320 points from the day's low. The Sensex attained its highest closing since 11 June 2009. IT, realty, banking and FMCG stocks led gains. But index heavyweight Reliance Industries (RIL) slipped. The market breadth was strong.

As per the provisional figures on BSE, foreign funds bought shares worth Rs 366.81 crore and domestic funds sold shares worth Rs 286.67 crore today, 30 July 2009.

Volatility was high as traders rolled over positions from July 2009 contracts to August 2009 contracts in the futures & options segment ahead of the expiry of July 2009 contracts today, 30 July 2009. Rollover of Nifty positions from July 2009 contracts to August 2009 contracts was about 60% at the end of Wednesday's (29 July 2009) trading. Rollover in Mini Nifty futures was about 43%.

The key benchmark indices slipped in early trade tracking losses in Asian stocks. After an initial slide the market moved to positive zone for a brief period before slipping into the red again. It recovered sharply in mid-morning trade tracking recovery in Chinese stocks. The market extended gains in early afternoon trade as the latest data showed inflation remained in the negative territory for a seventh week in a row. The market pared gains after surging to a fresh intraday high in mid-afternoon trade. The market extended gains in late trade on strong Q1 results from SBI and M&M.

The market today snapped last three days' losing streak. From a recent high of 15,378.96 on 24 July 2009, the Sensex had lost 205.50 points or 1.33% to 15,173.46 on Wednesday, 29 July 2009.

The wholesale price index (WPI) fell 1.54% in 12 months to 18 July 2009 compared to previous week's fall of 1.17% the government data showed at 11:50 IST. But the government revised upwards inflation for the week ended 23 May 2009 to 1.34% from 0.48%.

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1438 companies rose 25.8% to Rs 67307 crore on 5.6% fall in sales to Rs 622730 crore in Q1 June 2009 over Q1 June 2008.

Finance Minister Pranab Mukherjee told the parliament on Wednesday that economic growth was showing certain signs of improvement, and trade minister Anand Sharma said efforts were being made to reduce the trade deficit. The economy grew by 6.7% in 2008/09 (April/March), and Mukherjee said India will able to maintain that level of growth. On Tuesday, 28 July 2009, the Reserve Bank of India (RBI) projected growth in 2009/10 at 6% with an upward bias.

A weak monsoon remains a cause of concern. India's monsoon rains were 18% below normal in the week to 29 July 2009, having been above normal in the preceding two weeks. Total rainfall since the beginning of June was 19% below average, the India Meteorological Department said on Thursday. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Meanwhile, foreign direct investments (FDI) in India declined 43% to $2.2 billion in May 2009 over May 2008.

European shares rose on Thursday, as investors digested a raft of earnings, which continue to be mostly positive. Key benchmark indices in France, Germany and UK were up by between 0.53% to 1.2%.

Asian stocks rose, recovering from early losses. China's Shanghai Composite ended 1.69% higher, recovering from an initial fall. The index had declined 5% on Wednesday amid concern the government will curb inflows into a market that had more than doubled from last year's low.

Meanwhile, a statement on the People's Bank of China Web site late Wednesday cited a senior official as saying the central bank will emphasize market-based forces, rather than administrative controls in setting credit growth. The statement suggested the government isn't planning to set loan curbs at this time.

Key benchmark indices in Hong Kong, Singapore, South Korea and rose by between 0.49% to 1.23%.

Japan's Nikkei rose 0.51% in volatile trade as Japanese manufacturers increased production for a fourth month in June 2009, capping the fastest quarterly output expansion in more than half a century and helping the economy rebound from its deepest post-war recession.

Trading in US index futures indicated Dow could rise 66 points at the opening bell today, 30 July 2009.

US stocks fell on Wednesday, 29 July 2009 as investors worried that China might be ready to hit the brakes on lending, a move that could curb demand and hinder the global economic recovery.

The Dow Jones Industrial Average was down 26 points, or 0.3%, to 9,070.72. The S&P 500 index fell 4.47 points, or 0.5%, to 975.15, while the Nasdaq Composite Index was down 7.75 points, or 0.4%, to 1,967.76.

In economic news, orders for durable goods fell 2.5% in June 2009, much more than expected. Meanwhile mortgage applications fell for the first time in four weeks.

The BSE 30-share Sensex rose 214.50 points or 1.41% to 15,387.96, its highest closing since 11 June 2009. The Sensex rose 236.45 points at the day's high of 15,409.91 in late trade. The Sensex lost 107.98 points at the day's low of 15,065.48 in early trade.

The S&P CNX Nifty was up 57.95 points or 1.28% to 4,571.45. Nifty August 2009 futures were at 4578, at a premium of 6.55 points as compared to the spot closing of 4571.45. Turnover in NSE's futures & options (F&O) was Rs 94,477.38 crore, much lower than Rs 1,16,508.34 crore on Wednesday, 29 July 2009. BSE clocked a turnover of Rs 6,027 crore, lower than Rs 7,534.13 crore on Wednesday, 29 July 2009.

The Sensex is up 5,740.65 points or 59.5% in calendar year 2009 as on 30 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,227.56 points or 88.56% as on 30 July 2009.

Coming back to today's trade, the market breadth, indicating the overall health of the market, was strong. On BSE, 1,499 shares advanced as compared with 1,167 that declined. A total of 85 shares remained unchanged.

Among the 30-member Sensex pack, 23 rose while the rest declined.

The BSE Mid-Cap index was up 0.54% and the BSE Small-Cap index was up 0.8%. Both the indices underperformed Sensex.

The BSE IT index (up 2.8%), the BSE FMCG index (up 2.7%), the BSE Bankex (up 2.2%), the BSE TECk index (up 1.57%), outperformed the Sensex.

The BSE Oil & Gas index (down 0.19%), the BSE Power index (down 0.03%), the BSE Metal index (down 0.02%), the BSE Healthcare index (up 0.09%), the BSE Consumer Durables index (up 0.13%), the BSE Capital Goods index (up 0.2%), the BSE Auto index (up 0.86%), the BSE PSU index (up 0.89%), the BSE Realty index (up 1.3%), underperformed the Sensex.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.37% to Rs 1,899.90 after Anil Ambani said he will approach the Supreme Court on Thursday, 30 July 2009, seeking a final hearing on the two-year-old gas supply dispute on 1 September 2009. According to him the gas supply dispute between RIL and Reliance Natural Resources (RNRL) vitally affects public interest. The matter concerns power projects of national importance representing a capacity of 12,000 megawatt (MW) and an investment of over Rs 50,000 crore and affects the interests of over 10 million shareholders, he said.

The Supreme Court on 20 July 2009, asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. The court has scheduled next hearing on the dispute over the gas supply to Reliance Natural Resources (RNRL) on 1 September 2009.

RNRL has asked the Supreme Court to dismiss the government's affidavit on the dispute, even as the petroleum ministry has suggested that the court treats the pact between the two brothers null and void. The dispute concerns supply of natural gas from RIL's field, off the Andhra Pradesh coast, as also the price at which Reliance Natural Gas will get the fuel for power projects within the group.

In reply to the lawsuit filed by Reliance Industries challenging the Bombay High Court order, RNRL has said the government has no role to play in the private gas sharing dispute, and certainly not as a party to the row.

Oil exploration pivotals were mixed after crude futures tumbled almost 6% Wednesday as US oil inventories unexpectedly rose, raising fresh concerns of weak demand. India's largest exploration firm by sales ONGC rose 0.12%. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.

Cairn India fell 0.58% as consolidated net profit fell 67.2% to Rs 45.44 crore on 49.2% fall in sales to Rs 204.95 crore in Q2 June 2009 over Q2 June 2008. The company declared the results after trading hours on Wednesday.

PSU OMCs rose on fall in crude oil prices. BPCL and HPCL rose by between 4.3% to 8.01%. Lower oil prices will reduce underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

Indian Oil Corporation rose 4.08% as its net profit jumped 787.15% to Rs 3682.83 crore in Q1 June 2009 over Q1 June 2008. The company announced the result during market hours today.

Auto stocks rose after posting strong Q1 June 2009 results in the past few days. India's largest truck market by sales Tata Motors rose 0.44%. The company on Tuesday, 28 July 2009 reported 57.54% rise in net profit to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008.

India's largest tractor maker by sales Mahindra & Mahindra rose 1.22% after net profit rose 151.63% to Rs 400.80 crore on 28.04 % rise in total income to Rs 426.61 crore in Q1 June 2009 over Q1 June 2008. The results for the current quarter include the figures of the erstwhile subsidiaries Mahindra Holdings and Finance and Punjab Tractors which were merged with the company. Hence, the figures of the current quarter are not comparable with those of the previous year's quarter. The results hit the market just a while back.

India's top small car maker by sales Maruti Suzuki India was flat at Rs 1,397.70.

India's largest bike maker by sales Hero Honda Motors was flat at Rs 1,639.60. The company posted 83% jump in net profit to Rs 500 crore on 34% rise in total revenue to Rs 3865 crore in Q1 June 2009 over Q1 June 2008. The company announced the Q1 result after market hours on Wednesday, 29 July 2009.

Rate sensitive realty shares reversed early losses as inflation remained in the negative zone. Investors are concerned that the central bank may start reversing its interest-rate cuts in early 2010 as food and energy prices fan inflation. Rising interest rates may dent property demand as most of the commercial and housing deals are driven by finance.

India's largest real estate developer by sales DLF rose 1.02% ahead of its Q1 June 2009 result today. Unitech, Indiabulls Real Estate, Phoenix Mills and Omaxe rose by between 0.95% to 3.31%.

IT stocks rose on weak rupee. Better-than-expected Q1 June 2009 results by IT pivotals Infosys, Wipro and TCS also underpinned sentiment for IT stocks. TCS, Infosys and Wipro rose by between 1.34% to 6.04%.

The rupee recovered against the dollar after hitting a one-week low in early trade. The partially convertible rupee was hovering at 48.33/48.34, firmer than Wednesday's close of 48.42/48.43. A weak rupee boosts revenues of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

Patni Computer Systems rose 12.55% after the company said it will scout for acquisitions in the range of $50 million-$200 million in Europe and the Asia-Pacific to help lower its dependence on the US market.

Bank stocks rose on strong Q1 results from State Bank of India, India's biggest commercial bank in terms of branch network. State Bank of India (SBI) rose 4.37% as its net profit jumped 42.02% to Rs 2330.37 crore on 29.86% rise in total income to Rs 21041.51 crore in Q1 June 2009 over Q1 June 2008. The results hit the market during trading hours today.

India's second largest private sector bank in terms of operating income HDFC Bank rose 2.95%. India's largest private sector bank in terms of operating income ICICI Bank rose 3.14%.

Some FMCG stocks rose on improvement in India's annual monsoon in July 2009 after a dry spell in June 2009. FMCG firms derive substantial revenue from rural sector. Britannia Industries, ITC, Dabur India, Nestle India, United Spirits, Tata Tea, rose by between 0.65% to 2.79%.

India's largest FMCG company by sales Hindustan Unilever rose 5.15%. The company reported a 2.68% fall in net profit to Rs 543.19 crore on a 5.06% increase in total income to Rs 4536.17 crore in Q1 June 2009 over Q1 June 2008. The results were declared during trade hours on Tuesday, 28 July 2009. India's largest private sector steel maker by sales Tata Steel rose 2.53% even as net profit fell 47% to Rs 789.83 crore on a 8.16% decline in total income to Rs 5661.89 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on Wednesday, 29 July 2009.

India's second largest steel maker by sales Steel Authority of India rose 3.26% even as net profit fell 27.74% to Rs 1326.09 crore in Q1 June 2009 over Q1 June 2008. The company announced the result during trading hours today.

India's largest copper market by sales Sterlite Industries rose 0.89%. The company's net profit fell 68.5% to Rs 112.70 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on 29 July 2009.

Construction stocks rose on government's thrust on infrastructure sector in Union Budget 2009-2010. Era Infra Engineering, Gayatri Projects and IVRCL Infrastructure & Projects rose by between 1.56% to 3.14%.

But capital goods stocks fell on profit taking after a recent surge triggered by government's thrust on the infrastructure sector in Union budget 2009-2010. Bharat Heavy Electricals, Punj Lloyd, ABB, Praj Industries, Siemens fell by between 0.06% to 1.86%.

Cement stocks rose on posting good Q1 June 2009 results. Grasim Industries, ACC, Ambuja Cements and Ultratech Cements rose by between 0.78% to 4.1%. Some power stocks rose after a strong response to the Adani Power initial public offer which opened for subscription on Tuesday, 28 July 2009. NTPC, Power Grid Corporation Of India, Torrent Power rose by between 1.45% to 2.96%. Reliance Infrastructure rose 1.8% ahead of its Q1 June 2009 result today.

Sun Pharmaceuticals Industries tumbled 3.62% after net profit fell 56.7% to Rs 121.51 crore on a 39.5% decline in sales to Rs 405.88 crore in Q1 June 2009 over Q1 June 2008. The company announced the results during trading hours on Wednesday, 29 July 2009.

Other healthcare stocks, Cadila HealthCare, Piramal HealthCare, Lupin fell by between 0.02% to 3.7%.

Unitech clocked highest volume of 1.54 crore shares on BSE. Suzlon Energy (1.47 crore shares), Mahindra Satyam (1.14 crore shares), Ispat Industries (1.1 crore shares) and Ruchi Soya Industries (1.08 crore shares) were the other volume toppers in that order.

Tata Steel clocked the highest turnover of Rs 255.38 crore on BSE. Housing Development & Infrastructure (Rs 185.26 crore), DLF (Rs 171.59 crore), Suzlon Energy (Rs 145.94 crore) and State Bank of India (Rs 144.07 crore) were the other turnover toppers in that order.

Good News on Premier Explosives Ltd:

As you are aware that I had recommended Premier Explosives a couple of days back when the stock was in the lower circuit. Till that date it did not come down heavily from the recommended price leave alone the lower circuit..... I had already posted a Research Report on this company at www.eindiabrokers.com for the benefit of all and sundry. But, those super intelligent investors who seems to know everything and has an opinion on everything, and who might have exited the counter using their own gray matters, must be banging their heads on the ground; as there is a good news on the counter: Premier Explosives Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 31, 2007 has proposed to seek the approval of its shareholders through Postal Ballot for a resolution to give authority to Board for sale of assets of its Mushroom Division. This will give additional revenues to the company's Kitty which will help the company's expansion. This news could propel the stock to above Rs.100 in the days to come. Please keep a close eye on the counter and Keep away from the "Idiots and Thugs" if u want to make money from the markets. The more u avoid conferences in Yahoo Messanger, the better will it be for ur financial health. Best wishes, Suman Mukherjee India. www.eindiabrokers.com www.sumanspeaks.blogspot.com http://finance.groups.yahoo.com/group/SumanSpeaks/

Good news on Premier Explosives Ltd: Hope this will put the hearts of bruised and battered souls in order: I have mentioend ealier that this company will declare good results at the end of this months--but many took it as a disbelief, but those who had taken the news seriously and had accumulated the stock around Rs.37--Rs.41 range will be now be rewarded. This is equity markets, where patience is the key parameter to spin money. I have mentioned a number of times that I am too bullish on this counter:

The Premier Explosives Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 30, 2007, to consider and take on record the Audit Financial Results for the Financial Year ended March 31, 2007 and also considering recommendation of dividend for the year 2006-2007.

Besides the results will be excellent as mentioned earlier in my report at www.bcozindia.com and www.sumanspeaksplus.blogspot.com, which will give it the necessary thrust to move ahead. A major shareholder has already increased his stake in the company to 5.18%. Premier Explosives had shown a quantum jump in net profits for the quarter ended December, 2006. During the period, the company reported a 56.30% rise in profits to Rs 7.94 million from Rs 5.08 million, as compared to the same quarter last year. But the sales for the quarter declined marginally by 5.91% to Rs 159.26 million compared with the corresponding quarter, a year ago----showing that the margins of the company has increased and also its cost cutting measure are turning effective. Shares of the company closed up Rs 0.50, or 1.17%, at Rs 43.15. The total volume of shares traded at the BSE was 12,219 on last Friday.

In the same way the people will get benefitted in Southern Online Bio Technologies Ltd with few weeks, after it starts commercial production and nets a big order from a South India based Transport company, which is expected to absorb 85% of the produce.

I am also bullish on Torrent Power Ltd and Vishal Exports Ltd for the long term.

Premier Explosives comes out with wonderful Numbers:

Premier Explosives came out with wonderful set of numbers for the December, 2006. This time my sources did not disappoint me and I am bang on target.

The Net Sales from Operations: Rs.15.93 Cr ( Rs.16.92 Cr)

Other Income--->Rs.64.68 lakhs ( Rs.34.53 lakhs)

PBT--->Rs.1.24 Cr( Rs.74.11 lakhs)

Provisions for Tax-->Rs.44.89 Lakhs (Rs.23.27 Lakhs)

Net Profit-->Rs.79.44 Lakhs (Rs.50.84 lakhs)

EPS --->Re.0.98(Re.0.63).

Thus I do not think there is any problem from Premier Explosives in the days ahead. Also BSEL Infrastructure Realty Ltd has 55 lakh sq. ft of land available for development. The net revenues could be around Rs.1500 Cr for the next 3 to 4 years.

The company's order book position has crossed Rs.200 Cr.

Also Vishal Exports Overseas Ltd came out with disappointing set of numbers for the December, 2006 quarter considering Q-o-Q. But sequentially speaking the results are satisfactory.

My morning Call on NR International saw it hit the 20 % buyer freeze. Agro Dutch Industries and Nagpur Power and Industrires Ltd are also doing well.

More in the following postings.....

Best wishes,

Suman Mukherjee

India.

Post-Budget Focus:

Today I will focus my attention on three sectors only, where I have recently recommended some stocks: Good News in the Defense Sector: The companies which are supplying equipments to the defense departments are likely to get benefited immensely due to increased allocation of the defense expenditure upto Rs.90, 000 Cr. Hence, BEML, BEL, Premier Explosives Ltd etc are likely beneficiaries. In case of Premier Explosives it is double whammy:

(a) The company is expected to get a new contract from the Defense in this month, (b) It is going to complete the due diligence for the selling the assets of the mushroom division,

(c) It is going to utilize the proceeds for the sale of the assets, for further expansion and concentrate on Defense related deals or one can say focus on core competency,

(d) The proceeds will be utilized to retire the old debts the company is having at present,

(e) Its Special products division is going to add substantially both to the topline and bottomines,

(f) Its Overseas JVs has started to deliver, which is amply reflected in the last quarter results. Besides this the company will benefit from the buoyancy in the cement & mining ( read coal exploration) sectors, who are primary clients of Premier Explosives Ltd. It will also gain indirectly from the reduced Customs duty on Capital Goods (or one cay say inputs and machinery), sops to steel industry (which may lower price) and higher allocation for the Infrastructure. Good News for Construction Sector: The companies which are mainly into housing like Garnet Construction, Ganesh Housing, or Narendra Properties might be better placed as they are mainly into making of housing colonies and not Road Projects. Garnet Construction Ltd, Ganesh Housing Ltd and D S Kulkarni is already up today. In case of Garnet Construction Ltd there are additional benefits like government giving sops to plywood industry, which could arrest further price escalation of Plywood, which is an essential Building Material. There are also talks going on that the company could go in for private placement of equity at Rs.150 per share to a US company which could further take the share price to around Rs.170—Rs.180 range within the next one to 2 months time, once this is officially announced. One must have seen how private placement for Soma Textiles & Industries Ltd triggered a rally in the counter. Hence I am positive on these companies, though Garnet Construction, which I recommended earlier, is my best pick today also. It is to be noted that however much the government tries to pull down the prices of the Real Estate, it will not succeed as the demand is outstripping supply by miles. With Both FDI and FII investmemnts peaking, junior and senior executives are flush with money to go it for the purchase of houses. Also, with still liberal interest rate regime, people can easily go for the purchase of apartments…..Bharat Nirman Still remains the cornerstrone of UPA Government’s policy with 31.6 % increase in budget allocation to Rs.24, 603 Cr. 7, 83,000 rural houses have been constructed up to December, 2006 and 9, 14, 000 houses are under construction and the annual target of 15, 00, 000 houses is likely to be exceeded. This is a great news for housing companies. Clearly Bharat Nirman would continue to be a key business provider to the small and large infrastructure companies in the country. 3. Bad News for Media Sector: There were no incentive in the Budget for the media sector. On the Contrary, the withdrawal of customs duty exemptions/ concessions on recorded magnetic tapes for producing TV Serials and other equipments such as TV Cameras, audio recording equipment and so on is likely to have a negative impact on content providers such as Balaji Telefilms and UTV Software and on broadcasters in general. Digital Cinema Projects will not attract a customs duty of 7.5 %, which will have a negative impact on Pyramid Saimira, Cinemax Ltd, which imports its digital projectors. One of the recommended companies, Sanguine Media Ltd, has shed all these negatives and is in the buyer freeze.

But then all these are proposed and unless the Finance Bill is passed in the parliament, all the provisions are as usual.

More in the following positings.............

Best wishes,

Suman Mukherjee

India

www.sumanspeaks.blogspot.com

Important developments on Premier Explosives Ltd:

This is remind you all that Premier Explosives Ltd Sold the assets of Mushroom Division to M/s. Inventaa Chemcials Ltd for a consideration of Rs 17.50 crores plus value of stocks, work -in-progress and finished goods at the close of business hours on April 01, 2007. So today the mushroom division no longer exits in the company. As mentioned earlier the company will use the proceeds for carrying on the expansion programmes and also to clear some old debts. This will also help the company to focus on its core sector of operations, that is defence and private contracts for explosives and maintenance of explosives. I am looking at a target of not less than Rs.150--Rs.250 in the next 18 months to 24 months time frame. The EPS of the company is expected to increase considerably in the days to come as lot of their joint ventures are going to kick off from this month. Two of the overseas joint ventures are expected to kick off from this month. Two more are expected to kick off in the next month. The company is doing excellently well in all its front. The stock at the current price of Rs.42.5 is available at the price of a penny. IT is good buy for the medium to long term. Two other stocks which still looks good speculatuive buys(as mentioned earlier) are Goldstone Technologies Ltd and Zeno Tech Labs Ltd at the CMP of Rs.66 and Rs.109. I have mentioned earlier that great R J holds considerable chunks in ZenoTech Labs Ltd. Hope u have made good money from my calls of Garnet Construction Ltd at Rs.45.5 and Rs.49.5 & Sanguine Media Ltd at Rs.28 and Rs.32.5.

Today's Call:

Buy Premier Explosives Ltd at Rs.51.20 with a price target of above Rs.100 in 3 to 6 months time frame.

Premier Explosives manufactures explosives and also grows white button mushrooms. The company recently got a contract worth Rs 7 crore per year from ISRO for maintenance of a propellant plant for the premier space organisation.

The company recently started production of specialised products for defence sector. The commercial production at this division commenced from September 2006. Take position in the stock ahead of the results. It has also been recommended by a brokerage house with some hefty targets.

The stock did not perform in the bull run and hence the catch.

Best wishes,

Suman Mukherjee India.

IT pivotals, RIL proved to be a springboard for the 282-point rebound of Sensex: Invest in Housing and Real estate companies, as some of them are now available at bargain price & in Defense related companies: Premier Explosives hits the buyer freeze: Please wink at the comments made by Mr.Alen Greenspan about US Recession: Indian economy is domestic driven unlike other South Asian countries:

The market recouped a portion of the recent heavy losses, tracking a recovery across Asian markets. Short-covering in derivatives also played a part in today's remarkable upsurge. IT, telecom shares and leading banks edged higher. An upmove in index heavyweight Reliance Industries (RIL) provided the much-needed springboard for the sharp rebound. The 30-share BSE Sensex jumped 282.05 points (2.2%), to settle at 12,697.09. A bout of volatility struck in afternoon trade, and the market was firm till then. A sudden sell-off later had pulled the Sensex down up to 12,427.13 by 12:56 IST, just 12.09 points higher for the day. The S&P CNX Nifty gained 79.15 points (2.2%), to settle at 3,655.65. The Nifty March 2007 futures were at 3,644 compared to the spot Nifty closing of 3655.65. The BSE clocked a turnover of Rs 3807 crore compared to Monday (5 March 2007)’ s Rs 3996 crore. Turnover on NSE’s futures & options segment rose to Rs 35406.27 crore from Monday’s Rs 33865.52 crore. Asian shares recuperated from the recent steep losses, as investors struck bargains. Key benchmark indices in the Asian region rose 1% to 2%. Asian markets had declined sharply over the past few days due to worries pertaining to the US economy, volatile markets in China, and more frequently, the unwinding of yen carry trades, or when investors borrow the yen to take advantage of low interest rates in Japan, and then invest in higher-yielding assets. As per provisional data, FIIs were net sellers to the tune of Rs 732 crore on Monday (5 March 2007), the day when the Sensex had tumbled 471 points. FIIs were net buyers to the tune of Rs 324.90 crore on Friday (2 March 2007), the day when the Sensex had lost 273 points. Today recovery was not supported by the market-breadth. Against 1,465 shares declining on BSE, 1,105 shares declined. Just 50 shares were unchanged. Losers outpaced gainers by a ratio of 1.32:1. The BSE Small-Cap Index lost 11.23 points (0.18%), to settle at 6,259.52. BSE Mid-Cap Index rose 25.05 points (0.48%), to 5,219.45. Among sectoral indices, BSE IT Index was the top gainer in percentage terms. It surged 231.64 points (4.9%), to 4,961.94. The BSE Oil & Gas Index surged 131.25 points (2.2%), to 6,067.22. The banking benchmark, BSE Bankex, advanced 132.24 points (2.1%), to 6,353.28. Some indices did decline. The BSE Metal Index dropped 34.37 points (0.4%), to 8,002.12. The BSE FMCG Index shed 1.73 points (0.1%), to 1,699.63. Wipro led the rally in IT shares. The Wipro stock jumped 8% to Rs 582. IT bellwether Infosys gained 6% to Rs 2130, Satyam Computer gained 5% to Rs 435.50 and TCS advanced 3% to Rs 1198. The recent easing of the rupee triggered renewed buying for IT shares. The rupee’s fall will ease pressure on their profit-margins. The IT sector derives a lion’s share of its revenue in dollars. In early trade, the Indian rupee was at 44.550/560 per dollar, extending its move off Monday's trough of 44.695, the lowest since 21 December 2006. It had closed at 44.625/640 on Monday. Reliance Industries (RIL) rose 3.5% to Rs 1304.05. The stock gained on bargain-hunting after a recent steep fall in the counter. RIL enjoys 11.1% weightage in the BSE Sensex. ICICI Bank surged 4% to Rs 854. The stock enjoys 9.3% weightage in the barometer Sensex. ICICI Bank said on Saturday (2 March 2007) it plans to transfer investments in four subsidiaries to a new wholly-owned unit, ICICI Holdings, and may list the unit next year. Cement shares came off the lower level in volatile trade. ACC surged 5.9% to Rs 861.50, Grasim gained 1.4% to Rs 2133 and Gujarat Ambuja Cements gained 1.7% to Rs 113.80. Steel shares recovered from an intra-day decline. State-run Steel Authority of India advanced 1.2% to Rs 98.20, off the session’s low of Rs 91.50. Tata Steel ended flat at Rs 421, off the session’s low of Rs 404.55. Steel and cement shares had declined over the past few days with the government taking steps to rein in prices to combat inflation. Steel makers on Monday decided to rollback Rs 300 - Rs 700 per tonne price hike in reinforced steel. Producers have also agreed to cut prices of hot rolled coils by Rs 500 a tonne. At least two steel makers, Essar Steel and Tata Steel, had raised the price of hot rolled coils by Rs 1,000 per tonne on 1 March 2007, in line with international prices. However, cement makers refused to roll-back a price hike, executed post-Budget, following an increase in excise duty on cement. Bharti Airtel gained 4.7% to Rs 724. The near-term trigger for the scrip is the number of new subscriptions for February 2007. Bharti Airtel has 5.8% weightage in the Sensex. L&T rose 3% to Rs 1427. The stock rose on bargain-hunting after a recent steep drop. L&T has benefited from the government’s thrust on infrastructure in the Union Budget for the next fiscal. NTPC dropped nearly 3% to Rs 132.80. The board of NTPC approved a proposal for the company's foray into nuclear power generation. Ashok Leyland jumped 5% to Rs 38.50. The company said on Tuesday vehicle sales in February rose 33% to 8,036 units from 6,038 units a year ago. Domestic sales rose 33% to 7,353 units from 5,517 units a year earlier, while exports climbed 31% to 683 from 521 units. Aban Offshore rose 2% to Rs 1815. The company said on Tuesday its subsidiary had secured a drilling contract worth $123 million from affiliates of Canada's Addax Petroleum and China's Sinopec. Gujarat Narmada Valley Fertilizers rose nearly 2% to Rs 95.70. As per reports, the company plans to invest Rs 750 crore in 2007/08 to convert its urea plant feedstock to natural gas, in order to improve efficiency. Hotel Leelaventure lost nearly 3% to Rs 52. The company said on Tuesday its board would meet on 14 March 2007, to consider raising up to $110 million through various means, including foreign currency convertible bonds (FCCBs). Gemini Communication gained 0.3% to Rs 370. The company said on Tuesday it had bagged an order worth Rs 75 crore from a state utility for computerising its collection centres. Orchid Chemicals was volatile. The stock lost 0.3% to Rs 232. It staged a strong intra-day rebound from a 12.3% fall. The company today said its board had forfeited 10% of the share price amount paid by R Vijayalakshmi (promoter) and Dr M R Girinath (promoter group), aggregating to Rs 8.05 crore, on account of the non-conversion of the 35,60,000 share warrants into equity within the stipulated 18-months from the date of their allotment. Micro Inks lost 35% to Rs 320. The company today reported a net loss of Rs 16.89 crore in the December 2006 quarter compared to a net profit of Rs 16.07 crore in the December 2005 quarter. Total income for the December 2006 quarter was flat at Rs 242.85 crore (Rs 242.26 crore). Vivimed Labs lost 0.7% to Rs 178.20. The company today said it has been approved as a global supplier to L'Oreal of France. Software firm Hexaware Technologies rose 5.1% to Rs 152.65 after 2.5 million shares, or 1.9% of the share capital, changed hands in a block deal on the BSE at Rs 148. The major gainers among side counters were UTV Software (up 14.8% to Rs 281), MM Forgings (up 13.9% to Rs 170.90), Nalco Chemicals (up 13.7% to Rs 749), Rainbow Papers (up 13% to Rs 88.75), Gwalior Chemicals (up 12.9% to Rs 56.30), Automotive Axles (up 9.9% to Rs 599), GMM Pfaudler (up 9% to Rs 123.40), Rolta India (up 8.6% to Rs 307.50), Glenmark Pharma (up 8% to Rs 545.70), and PTC India (up 8% to Rs 58.80). Trading on the bourses has been extended by 45 minutes till 16:15 IST due to sun outage. The extended trading hours are till 19 March 2007. Indian stocks had tumbled in the last few days due to a sell-off in global markets, and also due to disappointment from Union Budget 2007-08 of 28 February 2007. The fall was accentuated as margin calls were triggered. The Sensex had tumbled 541 points on Budget day itself. The market had recovered the next day (on 1 March 2007) on the back of a rally in IT shares under the reckoning that their earnings will be impacted only to a small extent following an increase in tax in the Budget. The Sensex had surged 221 points, to 13,159.55 on 1 March 2007. However, a sell-off had gripped the bourses again, which saw the Sensex hurtle to 12,415.04 on 5 March 2007. While there was no cut in the 10% corporate surcharge which the market was expecting, the dividend distribution tax was raised to 15% from 12.5%. The Budget also raised direct/indirect taxes for cement, construction and IT sectors. A section of the market believes that the current fall offers a good buying opportunity for long-term investors. Deutsch Bank in a post-Budget report states that Bhel, Infosys, Punjab National Bank and Grasim (a high-risk, high-return play) are its top picks. UBS shares a similar view. ‘Post the recent correction, relative valuations don’t appear as expensive as they used to be. India is now the fourth most expensive market in Asia compared to the most expensive status that it used to have about a month back’, it states in its post-Budget report. At current levels, the Sensex trades at 15.8 times 1-year forward EPS – an 8% premium over the long-term average of 14.6, the report adds.[With inputs from the Internet]

My Addition:

Today Premier Explosives did well. So Invest on all the companies which are into Defence sector like BHEL, Areva TD, Rolta Ltd, Premier Explosives Ltd.I have confirmed news that Premier Explosives will get an order within this month.

Soon the housing companies will do well as the price of houses can be increased to make for the loss of benefits of some sections of IT Act. The real estate companies have indirectly indicated an increase of the price of flats, apartments in the days to come if the goverment continued with its aim to withdraw those sections of IT Act. Besides the Land Value of those companies have risen by many fold in the last few months which gives good valuation to them. I have news from sources close to me that the last quarter results of Garnet Construction Ltd will be excellent. One thing for Garnet Construction is certain: it is coming up with an Preference Issue....But I am yet to get the confirmed news on the Preferenced Issue price. Some quarters say that the preference issue price will be around Rs.150--but confirmed news from my personal sources is awaited.

Besides, a reputed Bombay-bsed PMS firm has sent the following news item to its clients: *Rollback of withdrawal of Sec 80 IB and Sec 80 IA is on the cards aver market pundits. So look out for construction and real estate scrips on decline. * The dual excise policy in cement reminds one of the controlled pricing in cement and the rampant black marketing! * BHEL bonus may be followed by a split in face value.

I could not upload the site due to some Internet related problems. In future if u do not find updates on this blog or Sumanspeaks group please note that it may be due to myh some serious pre-occupation with some works or may be due to some technical failures in the Internet front. Hence do not panic and hold on to ur positions. Most of the stocks which I have recommended could be averaged out if the price stabilises.

More in the following postings......

Best wishes,

Suman Mukherjee

India.

Southern Online Bio Technologies Ltd & Premier Explosives Ltd both closed with huge volumes, yesterday: Yesterday, Solar Explosives Ltd(not recommended by me) reached the upper circuit with huge volumes and hence I think the time has come for another equally good(or may be better) explosive Company, Premier Explosives Ltd to, hit the roof: Keep holding both the companies as they have a wonderful story to tell: Cinemax India Ltd recommended to select few at around Rs.139 and Rs.114, crosses Rs.160. Keep holdingn with a SL of Rs.154: AIA Engineering Ltd, recommended to special package group at around Rs.1300, also clocks huge volume and closes above Rs.1500: Bharat Seats recommended at Rs.109, hits another buyer freeze: My earlier recommended scrip ABC India Ltd reaches Rs.41 again. Those who have not sold earlier, please keep holding with a SL of Rs.39: Tera Software Ltd is heading towards Rs.120 mark , keep watch: Reliance Natural Resources Ltd (RNRL) recommended at around Rs.24-25 soared 5.70% to Rs. 31.55 on huge volumes of 3.65 crore shares. It was included in F&O segment from 14 May: Yesterday,the frontline IT pivotals stayed weak throughout the day’s trading session, as the rupee continued its upward march and was quoted at 40.83/84 against US currency in late morning deals on weak dollar overseas and sustained dollar selling by exporters, despite capital outflows.A rise in the rupee directly impacts revenue and profit of IT firms, which derive a lion’s share of revenue from exports to the US:

Also note that Index heavyweight Reliance Industries (RIL) was down 1.48% to Rs 1596.45 on 6.13 lakh shares. It slipped from a high of Rs 1623.25 following reports that it has got a tax benefit of Rs 376.17 crore in 2002-03 because of unreasonable concessions due to under-assessment by tax authorities, as per a report of the Comptroller and Auditor General (CAG) of India, which was tabled in Parliament on Monday, 14 May 2007: The market breadth was just about positive on BSE, with 1,314 shares advancing as compared to 1,270 shares declining, while 81 shares remained unchanged:Yesterday, both the mid and small caps indices closed in the gains, echoing my point that this is the time to invest heavily in this space:

In the US also there is a real dichotomy: "Big corporate America, the staid and stodgy companies, are doing well. They're going up today. Stocks that are riskier, stocks that are smaller, stocks in the emerging market vein or technology vein, those are being sold.":

Asian Stocks Fall Led by Kajima, CSR on Earnings; Inpex Rises:

Japanese stocks paced a decline in Asia after Kajima Corp. forecast a decline in profit, raising concern earnings growth at the country's builders will weaken. Kajima, Japan's largest general contractor, plunged by 10 percent, the biggest drop in nine years. Obayashi Corp. dropped for a fourth day, extending its slide to 11 percent. Australia's CSR Ltd. slid after saying profit will fall. ``Japan's market was bought on the basis of the country's recovery until 2005 but now that phase is over, investors are taking a closer look at the micro level of the economy,'' said Shuichi Hida, who helps oversee $850 million at Plaza Asset Management Co. in Tokyo. Earnings reports have ``resulted in the divergence of companies' share performance.'' The Morgan Stanley Capital International Asia Pacific Index lost 0.2 percent to 148.17 at 11:12 a.m. Japan's Nikkei 225 Stock Average declined 0.2 percent while the broader Topix Index fell 0.4 percent. Australia's S&P/ASX 200 Index dropped 0.2 percent. Energy stocks such as Inpex Holdings Inc. rose after crude oil prices climbed. All benchmarks in the region fell, except in South Korea, Taiwan, Malaysia, New Zealand and the Philippines. U.S. stocks dropped yesterday after profit at Home Depot Inc. dropped more than forecast, housing prices tumbled and foreclosures rose, heightening concern the real-estate slump may worsen. The Standard & Poor's 500 Index slipped 0.1 percent. Declining Earnings: Kajima plunged 10 percent to 526 yen, set for its biggest tumble since April 1998. The company expects a 23 percent drop in net income this business year, with a 2.2 percent slip in sales. Profit in the year ended March 31 jumped 84 percent. Obayashi, Japan's fourth-largest builder, dropped 4 percent to 702 yen. The stock extended yesterday's 5.8 percent slide, when the company forecast a 41 percent fall in net income this fiscal year. Earnings announcements in Japan peaked yesterday with 301 companies reporting, the most on a single day in a decade, the Nikkei newspaper said. Toshihiko Okino, an analyst at UBS AG in Tokyo, said profit forecasts for this year among the three largest construction companies missed consensus forecasts. ``Analysts thought the earnings at construction companies would be a lot better than they turned out,'' said Akihide Kinugawa, who helps manage the equivalent of $19 billion in Japanese stocks at T&D Asset Management Co. ``With Japanese shares now trading at twice the level they were in 2003, the earnings don't provide sufficient reason for indexes to rise.'' Energy Stocks Gain: CSR, Australia's biggest sugar refiner and home-building materials maker, slumped 3.6 percent to A$3.52. Earnings before interest and tax this year are ``unlikely to reach'' the A$406.1 million ($338 million) Sydney-based CSR reported for the 12 months to March 31, Chief Executive Officer Jerry Maycock said in a statement. Sugar prices have fallen and a housing slump has hurt demand for building-materials products. A measure of energy stocks on MSCI's Asia-Pacific index gained 0.8 percent. Oil futures in New York gained 1.1 percent yesterday to $63.17 a barrel, the highest since May 3. Prices were recently at $63.13 in after-hours trading. Inpex, Japan's largest oil explorer, climbed 1.9 percent to 1.05 million yen. Nippon Oil Corp., its biggest refiner, jumped 5 percent to 1,032 yen amid speculation it can pass on higher oil costs to consumers. SK Corp., South Korea's largest refiner, rose 3.4 percent to 107,500 won. [With Inputs from the Internet]

Some Tit-bits of Stocks: Another Mushroom manufacturing company could Spring Surprise after good showing in Q3FY-2006-07: An analysts is betting heavily on Textiles, Chemicals & Fertilisers and Agro-based sectors as according to him, these could be the prime target of the Finance Minister since these three sectors taken together contribute more than half the GDP: Momentum to continue in the bourses as the Pre-Budget Rally has stated, as was mentioned in ealier positings: Look for Undervalued & Fundamentally strong Scrips in Mid, Small & Micro-Cap Space:Natural Gas drags Crude Oil down:

When would Stock Exchanges stop moving the scrips at will from one Group to Another (Like moving a scrip from the Z-group to B2 group and vice-versa), triggering rally or fall in them. Is the officials close to Dalal Street Making money on this exercise? Seems? On the name of cutting volatilty a section of unscrupulous Traders and Investors who are connected with Stock Exchange Officials, are making hefty money, due to this mindless exercise; since rallies or falls in those scrips often start much before an Official Announcement:Has the "Protector turned Predator??!!!Is SEBI hearing???!!!

[Updated at 0840 Hours]:

1. BSEL Infrastructure Realty Ltd is all set to cross Rs.115 within a short time as after India Bulls Financial Services Ltd and J P Morgan Stanley, www.5paisa.com have recommended this stock with price target above Rs.100. So look for some swift and strong upmove in this counter. There are also strong rumours of bagging of another order by the company. Don't sell a single share of the company and add on dips in intra-day trade.

2. Agro Dutch Industries Ltd ( Recommended at Rs.23.5) is shooting up like a rocket after wonderful results are declared. Another Mushroom maker Premier Explosives Ltd [Premier Explosives manufactures explosives and also grows white button mushrooms. But unlike Agro Dutch Ltd who exports mushrooms heavily and is prone to Forex Fluctuations, it sells 70% of its produce in the domestic market] have come up with wonderful set of numbers which indicated that the company's margins have increased.

Some of the recent developments in the company are:

i) it got a Rs 7 crore per year order from ISRO for 20 years. ii)The company recently started production of specialised products for Defence sector. This effect have lifted the results of the last quarter. iii) Good number of Overseas tie ups(Joint Ventures) and brand building. iv)The price of mushroom have increased by 20%--30% in the Indian and International markets. iv) The value unlocking by selling some of the assets of its mushroom division will improve both its top and bottomlines.

v) After Karvy Stock Broking Ltd another brokerage house is thinking of recommending it after the superb Q3 results. Motilal Ostwal which recommend many of my scrips could recommend this scrip also. Hence, a rally could start any time in this counter and so do not sell a single share of this stock. The stock is bound to cross Rs.100 soon.

3. There are too much operator involvement in Aftech Infosys Ltd--try to trim ur positions in this counter if u are making profits.

4. A portfolio advisory service has turned bearish on Tata Steel and have projected a downward price of Rs.400 and hence be careful to take new positions.

5. Real Estate Stocks are not moving much these days except one or two. But whatever people say on real estate sector, the land prices are bound to increase as Land is limited but Human population is not----hence the obvious answer. Look for good construction companies and hold them till budget.

6. Valecha Engineering Ltd's promoters seems to be playing with the stock--try to trim up positions in the counter. The results more or less is factored in the current price.

7. Zigma Software Company Ltd has again started hitting the upper circuits, after the comments of some mad and motivated persons in Money Control Message Board some weeks back--they called this company a fraud when it started to go down. People say whatever they like when a stock goes in for correction mode. Also the moderators there were so wise that disallowed any messages to be posted there except what they wanted. Is it a message board or a "Den of Thieves or henchmen of CNBC".

8. CNBC has tried to give a new look to its site after my out-burst or fury against the mis-management of the Message board leading to losses of investors. But it still remains to be seen if they the Moderators of MMB stop playing with the stocks or not. "The protector has turned predator"---is SEBI hearing......Mr.Damodaran is out of Bombay or what????!!!

9. NR International Ltd has hit the buyer freeze after my morning call on Friday. The company is into coal exploration. But please avoid taking too much position in this scrip as the gains could be speculative.

10. Start booking profits in Nagpur Power and Industries Ltd as it could run out of steam any time.

11. The promoters of Jai Corp are selling family jewels to show inflated EPS on the results sheets but how long can they go on doing? Do they have portfolio management team to pick shares from the market. The stock could fall below Rs.1000. Keep watch and do not take fresh positions.

12. All sorts of stories are being floated in Futura Polyester to make the stock move up. Try to avoid the counter as there lot of good counters as of today.

13. India Bulls Financial Services Ltd is running ahead of fundamentals. But its demerged entity is going to list Rs.500 plus. So sell this portion immediately as u might get trapped any time.

14. Revathi Equipments Ltd came out with disappointing set of numbers for the Q3 and hence exit as this market tends to value quarterly results more even if they are manipulated or made to look dismal to keep away from the prying eyes of Taxmen or the company has great stories to tell ahead.

15. RPG cables have run up quite a bit on the news of real estate. It is time to say bye bye to this stock as cable business is showing signs of fatigue.

16. G M Breweries Ltd did not explode downwards as commented by a lady in Money Control Message Board with the blessing of the moderators (or may be she is one of the moderators posting under pseudo names to influence the stock) and hence it is unlikely to go too low in this bull charge. Keep holding with a SL of Rs.100. But the problem is that this market tends to value results more even if the company has huge growth prospects ahead.

17. Chandra Prabhu International Ltd is getting some pressure on its margins. They have also removed the full time company secratory and brought in a part-timer which brings suspicision on the company's activities off-late. Try to exit the counter for the time being before I tell u to enter again.

18. Gravity(I) Ltd is making new highs everyday, but the stock came down on last Friday after profit booking was advised. Try to exit the stock for the time, let it cool down a bit and then agian enter. This company has a lot of stories to tell in the days ahead. The company is investor friendly and managment is under the strict control of Rashik Lal Thakkar--nothing moves in the company without his blessings.

19. Some people are betting on RNRL due to its better prospects in 2008--2009. Keep watch on this counter.

20. Silverline Technologies and Teledata Informatics Ltd are moving up dangerously as lot of stories are floated by the vested interest groups. Solution: Try to pocket whatever profit you have before getting trapped in the counter.

21. After my sarchastic comments, Shivalik Global Ltd have fallen from grace--The stock rose beyond fundamentals on the blessings of some circles (MMB gave huge publicity to this stock for the vested interests to make money). Book now profit and enter only if it falls to Rs.41--Rs.42 levels again. There is no time frame when its real estate business will start. These days all player with or without knowledge wants to venture in Real estate....are all of them making profits?? I had recommended the stock at around Rs.25.5.

22. In the current budget government could give more incentives to food processing and Agriculture sectors and hence a rally could start at any time in this space. One of the Mushroom making companies ( Agro Dutch Industries) is already rallying and more are likely to follow suit. Keep watch.

23. Kakatiya Cement Sugar & Industies Ltd is falling even after posting encouraging results--this shows how a negative sentiment can do with stocks in the sector.

24. Some Hotel Stocks without any fundamentals are running just on news and operator movement. So invest only in the stock in which u have news. Remember all hotels are not making profit.....

25. According to an analysts the next happening sectors are Textiles, Chemicals & Fertilisers and Agro-based as these could be the prime choice of the Finance Minister (FM) since the three sectors taken together contribute more than half the GDP growth. Start picking up the best in these sectors.

26. Some people are still asking me about Morgan Ventures Ltd when I have asked all to book profits at around Rs.48--Rs.49 range last year without giving fresh call on it, but people have a habit of spinning stories on it. The company could make enormours by selling property, but "God" only knows when they will be able to do the same. The management off late has turned hostile to shareholders. Solution: Keep away and avoid taking fresh position.

27. Those who have not booked profits in Flat Products Equipments Ltd earlier should do the same immediately and wait for the Results. If the results are good then then can again enter at around Rs.105--Rs.108 range.

28. An Unexpected bonus from Gujarat Apollo Equipments has made the scrip run, some weeks back. But then when is the company coming up with Bonus issue or why did the company change its name to GUJARAT APOLLO INDUSTRIES LTD or suddenly decided to enlist the equity shares of the Company at National Stock Exchange, after the proposed bonus issue is completed.??!!

More in the following postings........

Best regards,

Suman Mukherjee

India.

www.eindiabrokers.com

http://finance.groups.yahoo.com/group/SumanSpeaks/

www.3paisa.com

Sensex settles just short of 14,300:The BSE Mid-Cap Index rose 71 points or 1.2% to 6,244.04 while the BSE Small-Cap Index gained 41 points or 0.6% to 7,357.75: Keep Holding Kernex Micro System Ltd with a SL of Rs.172 for the short term: Teledata Informatics Ltd has reached my first downward target of Rs.54. It will fall further to Rs.33-Rs.34 range and then to Rs.18--Rs.19 range: Keep adding Zigma Softwre Ltd or average out at the current price: KEI Industries Ltd is consolidating at the current price, keep holding with an appropriate stop loss: Keep adding Sanjivani Parenterals Ltd at the current price for a short to medium term target of Rs.65--Rs.70: Solar Explosives Ltd high on spirit, moves to Rs.156.25 on the better prospects of defence sector. Wait a little while for Premier Explosives Ltd to zoom to above Rs.70, as the result day nears. Premier Explosives Ltd is expected to come up with wonderful results besides the trial production has started in two of its overseas factories. The company is expected to get another defence order soon. Its main clients are Coal India Ltd, and some well known cement & mining companies:

Buy BOC India Ltd for a medium to long term target of Rs.250--Rs.300. Do not buy this stock for the very short term, the scrip may not perform--keep at least 6--8 months time frame. The company is into gas sector and is a wellknown name in this space:

The market, which opened firm yesterday, kept on advancing as time progressed. The rally gathered steam in mid-afternoon trading. The BSE 30-share Sensex closed with a 215.36 point spurt or 1.53% at 14,295.50. It opened slightly higher at 14,088.58 and started declining till it touched a low of 14,058.79 at 10:49 IST. The benchmark index bounced back from that level as buying resumed, to strike a high of 14,315.18 at 15:24 IST. The S&P CNX Nifty advanced 67.20 points or 1.62% at 4,214.30. The Nifty June 2007 futures settled at 4,212.50, a marginal discount of 1.80 points compared to the spot closing. Strong response to the follow-on public offer (FPO) of ICICI Bank, boosted the sentiment. Short covering extended the rally further towards the fag end of the day. Some market players had gone short on the market expecting a fall in share prices due to shift of funds by investors from secondary market to primary market to subscribe for the large sized Rs 8750 crore FPO of ICICI Bank. These short sellers rushed to cover their positions. Strong buying momentum was seen in select index pivotals including Reliance Industries (RIL), State Bank of India (SBI) and Oil & natural Gas Corporation (ONGC). However, IT stocks underperformed yesterday, 19 June 2007, as the rupee strengthened against dollar. The FPO of ICICI Bank was fully subscribed by the first one hour of the opening of the issue yesterday, 19 June 2007. The subcription to the FPO gathered further steam later. It was subscribed 2.70 times by 16:00 IST. It was observed that despite opening stronger for the past two trading sessions (15 and 18 June 2007), the Sensex had settled with losses on sell-off, despite strong global markets. Market men said the latest circular issued by the Central Board of Direct Taxes (CBDT) on Friday, 15 June 2007, failed to provide the much-needed clarity with regard to tax on profit/gain arising from sale of shares. CBDT issued the circular after trading hours on Friday, 15 June 2007. The total turnover on BSE amounted to Rs 4326 crore while the NSE F&O turnover amounted to Rs 37415.18 crore. The market breadth was positive on BSE with 1,397 shares advancing and 1,180 declining. 82 remained unchanged. The BSE Mid-Cap Index rose 71 points or 1.2% to 6,244.04 while the BSE Small-Cap Index gained 41 points or 0.6% to 7,357.75. Among the Sensex pack, 23 advanced while the rest declined State-run banking major State Bank of India (SBI) surged 3.78% to Rs 1368.30 on 5.56 lakh shares. It was the top gainer from the Sensex pack. SBI is set to raise $225 million from the overseas market this year by issuing perpetual bonds. The overseas issue opened on Monday, 18 June 2007, and the bank is expected to price the bonds this week. The bank plans to raise a total of Rs 15,000 crore this year in the form of equity (tier-I) and debt (tier-II). ICICI Bank advanced 2.69% to Rs 942.50. Before trading hours on Monday, 18 June 2007, ICICI Bank set the price band for its follow-on public issue. The price band for the issue has been fixed at Rs 885 to Rs 950 per equity share. Retail bidders would be allotted shares at a discount of Rs 50 per share to the issue price determined by the book-building process. The public issue opened for subscription yesterday, 19 June 2007. The issue size is Rs 8,750 crore. In addition, there is a green-shoe option under which the bank may allocate additional equity shares up to Rs 1,312.5 crore. The issue including the green-shoe option aggregates Rs 10,062.5 crore. Led by SBI and ICICI Bank, the BSE Bankex surged 2.71% at 7,681.51. Other shares from the banking pack, Bank of India (up 6.65% to Rs 204), Bank of Baroda (up 1.86% to Rs 265.10), Kotak Mahindra Bank (up 4.75% to Rs 589.95), Canara Bank (up 5.57% to Rs 252) and HDFC Bank (up 1% to Rs 1098.70) gained. Engineering & construction major L&T gained 3.52% to Rs 1995. The company’s joint venture won an order worth Rs 610 crore for a residential building project in Dubai. The project is to be completed in 660 days from the date of commencement. Auto stocks extended early gains. The BSE Auto Index settled 1.4% higher at 4,697.47. Tata Motors (up 2.86% to Rs 663.80), Bajaj Auto (up 2.10% to Rs 2125), Maruti Udyog (up 1.10% to Rs 752) and Hero Honda Motors (up 2.05% to Rs 667.10) advanced after the minister for petroleum and natural gas Murli Deora said yesterday, 18 June 2007, that that the government has no plan to hike the price of petrol or petroleum products. Recently, a senior oil ministry official said the government was likely to review retail prices of petrol and diesel in mid-July 2007 to bring them in line with the recent rise in global oil prices. Index heavyweight Reliance Industries (RIL) advanced 3.42% to Rs 1728.35, on 7.49 lakh shares. It rallied to a high of Rs 1731.90, in late trade. As per reports, global oil giants including Shell, Exxon and Chevron are eying a stake in Reliance Industries’ overseas oil & gas assets. RIL recently hived off these assets into a separate company, Reliance Exploration and Production DMCC. State run oil exploration major Oil & Natural Gas Corporation (ONGC) advanced 2.53% to Rs 912. It plans to set up 7.5 million-ton refinery as part of the proposed special economic zone at Kakinada, Andhra Pradesh state. The company unveils its Q4 March 2007 and FY 2007 results on 25 June 2007. Led by RIL and ONGC, the BSE Oil & Gas Index surged 2.9% to 7,645.59, and was the top performer among the sectoral indices on BSE. IT pivotals were off-loaded yesterday, 19 June 2007, as the Indian rupee climbed to a one-week high, with sentiment bolstered by a strong outlook for foreign investment flows, but suspected central bank intervention capped the rupee's gains. The BSE IT index slumped 1.61% to 4,861.28, and was the top loser among the sectoral indices on BSE. Infosys lost 1.55% to Rs 1958.10 on 3.31 lakh shares. It was the top loser from Sensex pack. Satyam Computers (down 1.50% to Rs 469.90), TCS (down 0.54% to Rs 1158.30) and Wipro (down 0.53% to Rs 520) were the other losers. In early trade, the rupee was at 40.715/725 per dollar moving up from Monday (18 June 2007)'s close of 40.7725/7825. It hit a nine-year high of 40.28 in late May 2007, but has since been broadly trading in a 41-40.50 band. Metal stocks caught up with the overall momentum. The BSE Metal Index rose 1.8% to 10,611.59. Tata Steel (up 3.40% to Rs 609), JSW Steel (up 3.72% to Rs 595.50) and Sail (up 2.93% to Rs 136.90), were the noteable gainers. Hindalco Industries lost 0.12% to Rs 161.90, after slipping to a low of Rs 159.15. It reduced aluminium prices for a fifth time this year to match global rates. Prices were cut by Rs 3,000 ($73), or 2.4%, to Rs 1,20,500 a metric tonne. Decolight Ceramics settled at Rs 44.50 on BSE, a discount of 17.5% over IPO price of Rs 54. The scrip debuted at Rs 57, and had touched a high of Rs 65.90 in early trades and thereafter touched a low of Rs 43.50. The counter saw high volumes of 1.58 crore shares on BSE. HTMT Global Solutions (HGSL) settled at Rs 583, compared with a base price of Rs 800 on its debut, 19 June 2007. The scrip resumed trading on BSE at Rs 790 (also its day’s high). It touched low of Rs 495 during the day. On BSE, 29.18 lakh shares were traded on the counter. As the stock is also included in the futures & options (F&0)segment on NSE, there is no daily price band for the scrip. The lot size of the stock in NSE's F&O market is 250. HGSL's debut on the bourses follows a restructuring scheme of Hinduja TMT (HTMT). Petron Engineering Construction surged 20% to Rs 227.15 after the company’s promoters agreed to sell their controlling stake in the company to Kazakhstan-based KazStroy Oil and Gas Construction Company. A newspaper report yesterday estimated a sale price of Rs 150 crore for the entire promoter holding of 63.45% in Petron. KazStroy builds cross-country pipelines, offshore terminals, power plants, chemical plants and other process plants. Sterlite Industries India rose 2.87% to Rs 560 on getting approval for listing of its initial public offering of 130.44 million its equity shares in the form of American Depositary Shares (ADS) at $13.44 each. These equity shares (in the form of ADS) represent an approximately 18.9% interest in the company post offering. The company's ADS have been approved for listing on the New York Stock Exchange under the symbol SLT. After this offering, the company will have approximately 689 million equity shares outstanding. Each ADS represents the right to receive one underlying equity share in the company. Jet Airways (India) rose 1.05% to Rs 793 after the company said its board will consider rights issue of equity shares to raise up to $400 million. The company's current equity is Rs 86.33 crore, with 8.63 crore outstanding shares of face value of Rs 10 each. TRF rose 1.98% to Rs 710, after touching a high of Rs 727.70. It bagged $16.5-million order from Shadeed Iron & Steel Oman for supplying material-handling system for a new steel plant in Oman. Dynamatic Technologies galloped 6% to Rs 1300 on acquiring the hydraulic business division of UK-based Sauer Danfoss for total consideration of $10 million. The buyout has been effected through the company's wholly owned subsidiary, Dynamatic UK. The acquired unit generates business worth $25 million annually, and is profitable. ABG Shipyard fell 3.6% to Rs 400 after its net profit rose by a marginal 6.69% to Rs 32.99 crore in Q4 March 2007 (Rs 30.92 crore). Sales rose 0.15% to Rs 193.07 crore in Q4 March 2007 (Rs 192.78 crore). Meanwhile, as per media reports, the shipping firm plans to enter oil-rig construction with an investment of Rs 600 crore to tap replacement opportunities in the offshore energy sector. Japanese shares were trading slightly lower yesterday on overnight cues from Wall Street, with banking shares such as Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group slipping, but exporters such as Canon Inc. and Sony Corp. gained as the yen continued to weaken against the US dollar. Japan's Nikkei was up 0.08% to 18,163.61. Other Asian markets were steady. South Korea's Seoul Composite was up 0.05% to 1,807.85 whereas Singapore's Straits Times index was up 0.04% to 3,625.28. Hang Seng (up 2.69% to 21,582.89) and Shanghai Composite (up 0.38% to 4,269.52) also edged higher. European markets which had opened higher, pared gains. Wall Street edged lower on Monday, 18 June 2007, after three consecutive days of solid gains as investors watched Treasury bond yields fluctuate amid lingering questions about inflation. The Dow Jones fell 26.50 points, or 0.19%, to 13,612.98. Broader stock indicators were also slightly lower. The Standard & Poor's 500 index fell 1.86 points, or 0.12%, to 1,531.05, and the Nasdaq Composite index slipped marginally by 0.11 point, or less than 0.01%, to 2,626.60. Crude oil was little changed in New York after rising to a nine-month high on 18 June 2007, as attacks on pumping stations in Nigeria raised concern output from Africa's biggest oil producer may extend declines. Crude oil for July delivery was at $68.95 a barrel, down 14 cents, in after-hours electronic trading on the New York Mercantile Exchange in Singapore , 18 June 2007. [With inputs from the Internet]