Vodafone Idea Ltd: Dialing Down Debt with Strategic Management, Bold Expansions and By Powering Innovations – A Call to Financial Freedom!

Vodafone Idea Ltd (Rs.13.14)  and Bharti Airtel Ltd (Rs.1578.70) two of India's leading telecom giants, have been grappling with substantial debt burdens for several years. Furthermore, relentless competition in the Indian telecom market, coupled with aggressive spectrum auctions and the financial impact of the pandemic, have significantly strained their balance sheets. Photo: Navbharat Times.

To begin with, among the 3 - prominent players in the sector, Vodafone Idea Ltd (Rs.13.14), often seen as the underdog in the Indian telecom sector, is currently on a thrilling rollercoaster ride of financial and operational transformation. Infact Vodafone Idea is making headlines with its ambitious plans to transform its financial landscape. Despite formidable challenges, Vodafone Idea's strategic maneuvers and debt reduction efforts signal a promising path forward. The company's focus on debt management, coupled with its bold expansion plans and recent tariff hikes, paints a picture of resilience and potential growth.

Recently, major players like Airtel and Jio have increased tariffs by 10-21% across the board. While the two big telcom companies raised entry-level 5G tariff plans by more than 45%, Vodafone Idea has also benefited from the hike in 4G tariff plans, a move that is expected to show its full impact by the end of this quarter and the next, which concludes in December 2024. Notably, Vodafone Idea Ltd will get more room for tariff hike once the 5G is launched. 

Incidentally, the company's cash and bank balance stood at Rs.18,150 crore as of June 2024. However, the telecom giant still faces significant financial obligations, with a staggering Rs.2.09 trillion owed to the government. This includes deferred spectrum payment obligations of Rs.1.39 trillion and an adjusted gross revenue liability of Rs.70,320 crore.

With a mix of strategic maneuvers and a sprinkle of resilience, the company is demonstrating how it’s turning a mountain of debt into a launchpad for future growth. 

Here’s an insightful look at how Vodafone Idea's debt and recovery strategies are positioning it for a potentially remarkable comeback, especially when compared to its competitor, Airtel.

The Debt Basket: Vodafone Idea vs. Airtel: Vodafone Idea’s debt is like that hefty bag of groceries you’re trying to carry up the stairs after a long day. It’s heavy, it’s daunting, and at times, it feels like it might just drag you down. 

As of June 2024, Vodafone Idea is juggling a staggering ₹46,500 crore in bank loans and ₹1,600 crore in optionally convertible debentures. This is in addition to a towering ₹2.09 trillion owed to the government, which includes deferred spectrum payments and AGR dues. But wait, there’s a plot twist!

Despite this mountain of debt, Vodafone Idea is not just surviving; it’s thriving. The company has successfully managed to reduce its bank debt by ₹4,550 crore over the past year and is in the process of securing an additional ₹35,000 crore for expanding its network. This is akin to carrying that bag of groceries up the stairs with a smile, while also managing to fit in a few extra items.

On the other hand while Bharti Airtel's debt situation is not as dire as Vodafone Idea's, it still remains a significant concern. Slowing capital expenditure and improved earnings have brought down the indebtedness of Bharti Airtel by over $1 in the last one year. At the end of June 2024, the telecom major had a net debt of $24.3 billion, which is $1.05 billion less than what it had at the end of the same quarter last year. As of June 2024, Bharti Airtel's total debt was ₹2.102 trillion, not at a meagre figure. But look at the CMP of Rs.2 face value (Vodafone Idea Ltd: Rs.10, FV) share of Bharti Airtel Ltd -- it's whopping Rs.1578.70. On a Rs.10, Face Value scale, the CMP of the shares of Bharti Airtel Ltd is Rs.7893.50, which is ~600 times the CMP of Vodafone Idea Ltd. So, you can imagine the prospects in terms of shareholders value once the Vodafone Idea starts to come out of the death tangle.

Marginal Drop in Subscriber Base: While lot of brouhaha has been going on regarding its loss of subscriber base but a careful analysis says a different story. The company has a total of 210 million subscribers as of June, with the balance coming from 2G and 3G. Its total subscriber base fell marginally from 221.4 million on-year. Interstingly, the struggling telecom carrier recorded 12 consecutive quarters of 4G subscriber additions, taking its 4G base to 126.7 million.

Loss Narrowed and Debt Reduced: Vodafone Idea’s losses narrowed to Rs.6,434 crore for the quarter ended June 2024, from Rs.7,674 crore the year before, while revenues remained almost flat at Rs.10,508 crore as again Rs.10,606 crore on Y - o - Y basis. 

Its total debt from banks and financial institutions stood at Rs.46,500 crore and optionally convertible debentures at Rs.1,600 crore as of June 2024. Debt from banks and financial institutions reduced by Rs.4,550 crore during the past one year, compared to Rs.9,200 crore in Q1FY24.

ARPU Improved: Average revenue per user (Arpu), a key metric of profitability, improved to Rs.146, up 4.2% on-year for the No.3 carrier, but it remained flat on a sequential basis. Amongst the telcos, Airtel is the only carrier that has seen its Arpu rise in the June quarter. Surprisingly, the No.1 carrier Reliance Jio’s Arpu was also flat the quarter. 

Preference Issue Price: In addition to the FPO, the VI board has also approved a preferential share issue to raise Rs.2,075 crore from an Aditya Birla Group (ABG) entity. The shares were decided to be issued at Rs.14.87 apiece to Oriana Investments Pte Ltd, VI said in a notice to the stock exchange on April 13, 2024; the price which is substantially high than the CMP.

Closure of 3G Networks: The company has converted 3G networks to 4G in several circles. I believe that increased 4G coverage will help arrest market share losses on 4G in the medium term.

VI plans to use 70% of the FPO proceeds to boost 4G coverage (26,000 sites), 4G capacity (40,800 sites) and 5G rollout (22,000 sites); Rs.2,175 crore will be used for paying deferred payments for spectrum to the Department of Telecom and the GST. The balance amount of Rs.18,000 crore will be used for general corporate purposes.

In short, the FPO fund will be used to set up new 4G sites, expanding the capacity of existing and new 4G sites and setting up new 5G sites. This is expected to be a huge money spinner for the company in future.

Airtel’s Debt: The Sibling with a Smaller Bag: Airtel is holding its debt situation with a bit more grace, carrying a more manageable debt load compared to Vodafone Idea. Airtel’s financial situation is akin to having a smaller, more manageable grocery bag. While it has also seen some debt reduction, its numbers are less dramatic compared to Vodafone Idea’s epic saga. Airtel’s debt figures are not as eye-poppingly massive, making their financial narrative a tad more serene but less dramatic.

Vodafone Idea’s Strategic Moves: Plotting the Comeback: Vodafone Idea is not just sitting around waiting for a financial fairy godmother. The company is in talks to secure more debt funding, which will fuel its ambitious ₹55,000 crore capex plan over the next three years. This includes expanding its 4G network and rolling out 5G services. They’re also maneuvering to raise equity through various financial instruments, such as the follow-on offer and preferential share issues, making it clear they’re serious about transforming their financial landscape.

The recent equity raise and planned capex investments are like a high-octane fuel injection into Vodafone Idea’s engine. With these moves, they aim to boost their network capacity, improve coverage, and, most importantly, position themselves as a strong contender in the rapidly evolving telecom market.

Caveat: It may, however, still face a cash shortfall from the second half of FY26 once the ongoing moratorium on the government’s AGR and spectrum repayments ends. 

Therefore, it is imperative that unless the government of India exercises the option to convert these dues into equity, this topic will continue to remain a key fuelling uncertainty, both from a cash flow and an equity dilution perspective.

A Glimmer of Hope: Government Relief and Market Impact: Vodafone Idea’s potential relief from the government on AGR dues could be a game-changer. If the AGR dues are reduced by up to 50%, it could significantly lighten the financial load. 

I'm optimistic in the sense that with the right combination of tariff hikes in the months to come, government relief, and network expansion, Vodafone Idea could emerge stronger and more competitive.

Conclusion: A New dawn: While Vodafone Idea’s financial journey might resemble a dramatic soap opera with its debt-laden storyline, the company is making commendable strides toward recovery and growth. 

Recently, there were media reports saying, the banks have completed the techno-economic evaluation (TEV) of Vodafone Idea and it is in discussions for landing the Rs.35,000-crore additional financing required for its capital expenditure needs.

Also, there were media briefings that, Vodafone Idea has reached out to the Department of Telecom to seek waiver on a financial bank guarantee worth Rs.24,747 crore for spectrum payment due in September 2025. Also, the company opted for a moratorium on AGR payments. The moratorium ends in March 2026. VIL is required to provide bank guarantees at least 13 months prior to the expiry of the relevant moratorium period.

While opting for the moratorium, VIL cleared about Rs.16,000 crore interest obligation on the deferred payment by offering equity in the company to the government.

Thus the government shareholding in VIL fell from about 33% 2023 to 23.80% as of March 31, 2024, after the company raised Rs.18,000 crore through a follow-on public offer (FPO), Rs.7,000 crore between March 2022 and May 2024 from the promoters and issued preferential shares to vendors to clear their dues.

Vodafone Idea (Vi) has also cleared all its statutory dues of around Rs.700 crore, including licence fees and spectrum charges, for the April-June quarter, the 1st time the it managed to meet its obligations over a substantial period.

Shareholders should therefore, view this period as an exciting chapter of transformation and opportunity. With its aggressive expansion plans, strategic debt management, and potential regulatory relief, Vodafone Idea is not just a survivor but a phoenix rising from the financial ashes.

So, buckle up and enjoy the ride—Vodafone Idea is making a comeback that might just surprise everyone!

============================

Sources:

🏵️CNBC TV18 Ltd

🏵️ The Business Standard

🏵️Moneycontrol.com and other inputs from the internet and elsewhere.

Zee Entertainment Enterprises Ltd (Rs.134.52)

I want to The likelihood of USD depreciation or appreciation against the INR depends on various economic factors and trends. Here are key considerations for each scenario. a few points here:

Q. What is the coupon rate of FCCBs?

Ans. The coupon rate is 5%, which will be applicable for 10 years. This is substantially lower than the 11%/12% PLR which is generally available in India. 

Q. What is the conversion price of FCCBs after 10 years?

Ans. The conversion price is Rs.160 per share. 

Q. What is the total consideration under FCCB?

Ans. The total amount is$239 million (Rs.1960 Cr).

Q. Is there any problem of equity dilution in the short term?

Ans. Let us first read the news on the topic from CNBC TV18 website:

The FCCBs will be issued to Resonance Opportunities Fund, St. John's Wood Fund Ltd. and Ebisu Global Opportunities, on terms and conditions mutually decided between the company and the 'proposed' investors.

Zee Entertainment further said that these FCCBs will carry a coupon of 5% per annum and will be unsecured and unlisted in nature with a maturity period of 10 years.

In case all the FCCBs are converted to equity, it will result in a post-money dilution of 11.7%. As of the June quarter, promoter stake in Zee Entertainment is currently at 3.99%.

In the short term there will not be  any issue of equity dilution. In future a rise in top and bottomlines of the company will take care of equity dilution (if any), especially when the June, 2024 quarter results are good.

Q. Does ZEEL have presence in OTT platform?

Ans. ZEEL has presence both in Television segment and the OTT platforms. ZEE5 is the brand new digital entertainment destination launched by Zee Entertainment Enterprises Ltd. It is in OTT platform. 

Hence, if competition hardens in the TV space, it may shift a substantial chunk of its business or shift altogether to the OTT platforms. 

Q. What could be approximately price of the ZEEL shares after 10 years?

Ans. It is hard to predict its price after 10 years, however if we take an incremental INFLATION figure into consideration we could see a substantial rise in its share price (as a going concern) considering the current management guidance and their optimism.

Q. What does the company want to do with the FCCB?

Ans. This is an Irrelevant question, since such funds are generally used for the benefit of any company. Hope the management, under the able leadership of Puneet Goenka will utilise the funds to increase shareholders value.

Q. Since it is FCCB and hence it is affected by the USD ($) Vs INR (Rs) ratio. Will it have any adverse effect on the company?

Ans. If the USD ($) depreciates, it will generally benefit the Indian company that has issued Foreign Currency Convertible Bonds (FCCBs).

Reasons:

💢Lower Repayment Cost: FCCBs are denominated in USD ($), so the company needs to repay the bondholders in that currency. If the USD depreciates against the Indian Rupee (INR/Rs), the company will need fewer INR to buy the required USD for repayment. This reduces the overall cost of repayment.

💢Conversion to Equity: FCCBs have an option for bondholders to convert their bonds into equity at a predetermined conversion price. For example in this case the conversion price is Rs.160.

If the USD depreciates, the value of the conversion option may be less attractive to bondholders, as they might receive fewer INR for the same amount of USD. However, this primarily affects the bondholders and not the issuing company directly.

Overall, a depreciating USD will reduce the financial burden on the Indian company when it comes to repaying the principal and interest, thereby benefiting the borrower.

Q.  What is the chance of USD depreciation in future, considering the excessive money printed by fed?

Ans. There's a possibility that the USD could depreciate in the future if the U.S. Federal Reserve (FED) continues to print a significant amount of money. Let's find out how:

💢Inflation Risk: When the US Fed prints more money, it increases the money supply. If this increase outpaces economic growth, it can lead to inflation, where the value of each USD decreases because there are more dollars chasing the same amount of goods and services. 

This inflationary pressure can cause the USD to lose value relative to other currencies.

💢Decreased Confidence: Excessive money printing can lead to concerns about the long - term value of the USD. If investors and foreign governments lose confidence in the stability of the dollar, they may shift their investments to other currencies or assets, leading to a decrease in demand for the USD and, consequently, its depreciation.

A 15 July, 2024 edition of The Hindu says: "India and Russia have doubled their payments in national currencies (rupee-rouble) since last year despite sanctions by the U.S. and European Union, said Russia's largest, state-controlled bank Sberbank that handles a majority of payments for Indian exports to Russia". 

💢Interest Rates: To counter inflation, the US Fed might eventually raise interest rates. While higher rates can attract foreign investment (which might strengthen the USD), the timing and effectiveness of such measures are uncertain. If the inflationary impact of money printing is not contained, the depreciation risk remains.

💢Global Economic Factors: The USD's value is also influenced by global economic conditions, such as the strength of other currencies, geopolitical events, and trade balances. While money printing is a significant factor, it's not the only one that determines the USD's exchange rate.

In summary, excessive money printing by the US Fed could contribute to a future depreciation of the USD, especially if it leads to high inflation or erodes confidence in the currency. However, the actual impact will depend on a range of economic and policy factors. I believe there is more chance of USD depreciation than appreciation.

Q. If the USD depreciates then will the bond holders ask their money back or convert into equity? Which one is more likely?

Ans. If the USD depreciates, the decision by bondholders to either ask for their money back (redeem the bonds) or convert them into equity will depend on several factors, including the bondholders' expectations about the future value of the equity and the terms of the Foreign Currency Convertible Bonds (FCCBs). Let's look at the few hypothetical scenarios:

💢Redemption of Bonds (Asking for Money Back):

   💠Depreciating USD Impact: If the USD depreciates, the value of the repayment in USD decreases in terms of the bondholders' local currency. This might make bondholders more inclined to redeem the bonds, especially if they believe that the value of the equity (in INR) will not compensate for the loss due to currency depreciation.

   💠Risk Aversion: Bondholders who are risk-averse or unsure about the future performance of the issuing company’s stock might prefer to get their money back, especially if they expect further depreciation of the USD.

💢Conversion into Equity:

  💠Attractive Equity Valuation: If the company's stock is performing well or is expected to perform well, bondholders might opt to convert their bonds into equity. This could be particularly appealing if they believe that the potential gains from the stock market will outweigh the losses from the depreciating USD.

  💠Hedge Against Currency Risk: Converting into equity might also serve as a hedge against further depreciation of the USD. By holding equity in an Indian company, bondholders can benefit directly from any appreciation in the company’s stock, which might also appreciate due to a stronger INR.

Q. What if the USD appreciates Vs INR, then what option will the bond holders likely to take?

Ans. If the USD appreciates against the INR, bondholders will likely evaluate their options based on the following considerations:

💢Redemption:

   💠Higher Repayment Value: If the USD appreciates, the value of repayment in INR terms increases. Bondholders may find that redeeming the bonds is more attractive because they will receive a higher amount in INR compared to when the USD was weaker.

   💠Risk Management: For bondholders who prefer to avoid currency risk or seek a stable return, redemption might be preferred to secure the higher INR value now rather than potentially facing future uncertainties.

💢Conversion into Equity:

  💠Potential for Equity Growth: If the company's stock is performing well or is expected to perform well in future or is much above the agreed conversion price into equity bondholders might see potential for higher returns from the company's stock than from redeeming the bonds.

 💠Hedging Against Currency Risk: Conversion into equity could also be viewed as a way to hedge against further fluctuations in currency exchange rates, especially if bondholders expect continued volatility.

💢Bond Terms and Company Performance:

   💠Conversion Price: If the conversion price is favorable and the company’s stock is expected to appreciate, bondholders might choose conversion even with a stronger USD, as the potential gains from equity could outweigh the benefits of redemption.

  💠The Company’s Financial Health: The company’s performance and growth prospects will heavily influence this decision. A strong-performing company with good future prospects may make equity conversion more appealing despite the appreciation of the USD.

💢Market Conditions:

   💠Overall Market Sentiment: The broader market conditions and investor sentiment towards the company's sector can impact the decision. If the market outlook for equities is positive, bondholders might be inclined to convert.

The Summary:

💠Redemption: Bondholders might opt for redemption if the stronger USD results in a significantly higher INR repayment amount, especially if they prefer stability or are risk-averse.

💠Conversion: If the company’s equity offers promising growth prospects or if bondholders believe that converting into equity will yield better returns in the long run, they might choose to convert despite the stronger USD.

In essence, the decision will depend on the bondholders' assessment of the company’s future performance, their risk tolerance, and the comparative advantages of redeeming the bonds versus converting into equity.

Q. Which is likely for the USD? Appreciate or Depreciate?

Ans. Predicting the future movement of currencies, including whether the USD is more likely to depreciate or appreciate, involves considering a variety of economic factors and conditions. Here are some key factors to consider:

💢Points Supporting USD Depreciation:

      💠Monetary Policy:

    - Excessive Money Printing**: If the Federal Reserve prints too much money, it can lead to inflation and a decrease in the value of the USD.

         - Low Interest Rates: Extended periods of low interest rates can make the USD less attractive to investors seeking higher returns.

      💠Trade Deficits:

   - Continued Trade Imbalances: Large and persistent trade deficits can weaken the USD as more dollars are exchanged for foreign currencies.

💢Economic and Political Uncertainty:

   - Instability or Uncertainty: Political instability or economic challenges in the U.S. can erode confidence in the USD, leading to depreciation.

💢Global Economic Trends:

   - Rise of Other Currencies: If other major economies (like the Eurozone or China) strengthen their currencies or experience economic growth, the USD might weaken relative to these currencies.

💢Factors Supporting USD Appreciation:

     💠Interest Rate Differentials:

   - Higher Interest Rates: If the Federal Reserve raises interest rates, it can attract foreign investment, increasing demand for the USD and leading to appreciation.

💢Strong Economic Performance:

   - Robust Economic Indicators: Strong U.S. economic performance, including growth, low unemployment, and high consumer confidence, can strengthen the USD.

💢Safe-Haven Status:

   - Global Uncertainty: During times of global economic or geopolitical uncertainty, investors often flock to the USD as a safe-haven asset, leading to appreciation.

💢Fiscal and Monetary Policy:

   - Effective Policy Measures: Strong and effective fiscal and monetary policies can support the USD.

💢Conclusion:

Predicting whether the USD will depreciate or appreciate is complex and influenced by many variables. Historically, the USD has shown both appreciation and depreciation trends based on shifting economic conditions and policy decisions. Keeping informed about current economic indicators and policy actions is crucial for understanding potential future movements of the USD.

Front Running and Swan Energy Ltd (Rs.192.15)

Accumulate the stocks from distress selling....

Front-running is an illegal and unethical practice where someone trades in shares based on advance information from a broker, dealer, analyst, or other executive at a market intermediary in their personal accounts, before the trades are executed by that entity.  Photo: The Hindu BusinessLine.

After the name of Swan Energy Ltd, got entangled with Quant Mutual Fund, selling has been witnessed in the counter, especially yesterday when it fell more than 4% in intraday trade, closing near the days low. 

It is to be noted that around 100 stocks out of the basket consisting of 178 that are part of the portfolio of Quant Mutual Fund ended lower, post Moneycontrol's report on Sunday that mentioned SEBI's search and seizure operations on the premises of the fund house. The operation was conducted across two locations – Mumbai and Hyderabad. Quant Mutual Fund is owned by Sandeep Tandon, with assets under management close to Rs.90,000 crore.

It is pertinent to mention here that Quant Mutual Fund has been a top performer, growing its AUM significantly from Rs.258 crore in January 2020 to over Rs.90,000 crore by June 2024. 

However, selling in the counters of Swan Energy Ltd is just a MISNOMER, since allegations of front running is on the fund house and has nothing to do with individual stocks; except creating a negative sentiment on future performance (of the stocks in its portfolio); leading to forced redemptions by the investors -- means there could be sudden increase in supply of the shares of Swan Energy Ltd. 

The prudent investors should therefore accumulate the panic - selling - stocks by the investors of Quant Fund.

Meanwhile, according to Trenlyne, in May 2024, 27 mutual funds bought while only 4 mutual funds sold Swan Energy Ltd, resulting in a net change of 193,576 shares. 

Kirtan Shah from Credence Wealth Advisors LLP noted that Quant MF holds substantial investments in large-cap stocks, with significant exposure to Reliance. He mentioned that liquidity for redemptions isn't a concern but anticipated potential selling in mid and small-cap stocks held by Quant, possibly leading to short-term underperformance.

You need to accumulate, since a major event like RELISTING of the shares of Reliance Naval and Engineering Ltd (RNEL) will take place very soon. Post Listing Swan Energy Ltd will get the tag of Defence Stock, since according to my sources, RNEL has a high probability of getting contract for making WAR SHIPS.

Another major factor fueling the positive sentiment around Swan Energy Limited is its recent success in obtaining a significant order from the Karnataka government. 

The company will be installing India's second-largest solar plant, a pioneering project that highlights Swan Energy’s dedication to sustainable energy solutions. This initiative aligns seamlessly with the Indian government’s ambitious renewable energy targets and is anticipated to greatly enhance the company’s long-term growth.

About Swan Energy Ltd:

Swan Energy Limited, based in Mumbai, Maharashtra, is a global company with a long history dating back to 1909. Owned and managed by the Dave and Merchant families, it operates in three main areas:

Textile: Swan Energy produces and sells cotton and polyester textiles. It has a modern fabric processing plant in Ahmedabad, capable of handling 100,000 meters per day.

Real Estate: This segment focuses on developing and managing residential and commercial properties. The company is known for its high-quality construction and has completed over 24 million square feet of projects.

Energy: Swan Energy plays a crucial role in India’s energy sector with its 5 MMTPA FSRU-based LNG terminal in Jafrabad, Gujarat, the first of its kind in the country.

The company is known for its quality products and services and is always looking for growth and innovation opportunities. 

Some of its notable achievements include the 2018 commissioning of the Jafrabad LNG terminal, winning the “Best Energy Company” award at the CNBC-TV18 India Business Leaders Awards in 2020, and being ranked 10th on Forbes India’s Most Valuable Private Companies list in 2021.

As Swan Energy continues to grow and achieve milestones, it remains a significant player in India’s industrial sector. With a strong focus on renewable energy, the company is well-positioned for a bright future that aligns with India’s energy goals.

Investors and stakeholders are keenly watching its progress, expecting substantial returns in the coming years.

 Today's Call

Buy the shares of Dhanlaxmi Bank Ltd near the CMP of Rs.42.50, T: Rs.47, SL: Rs.37. 

A non-performing asset (NPA) is a debt that remains overdue and unpaid for a specified duration. 

Trendlyne Data reports that in Q4FY24, Canara Bank, Punjab & Sind Bank, Bandhan Bank, and Central Bank of India experienced the most significant reductions in NPAs. The net NPA ratio of Dhanlaxmi Bank stood at 1.25% in Q4FY24, Vs 1.27% in Q3FY24.

Dhanlaxmi Bank recorded a net profit of Rs.57.82 crore for the financial year that ended on March 31 (FY24) against Rs.49.36 crore in net earnings received in the previous year. The operating profit for the period came to Rs.69.26 crore.

Total business reached ₹24,687.21 crore from ₹23,205.38 crore, registering a growth of 6.39 per cent. Total Deposits reached ₹14,290.31 crore from ₹13,351.65 crore, a growth of 7.03 per cent. CASA’s share of total deposit was 30.66 per cent.

Retail term deposits registered a growth of 9.17 per cent to reach ₹7,189.75 crore from ₹6,586.01 crore.

Business growth and growth in retained earnings lead to an increase in balance sheet size by 5.49 per cent from ₹15,132 crore to ₹15,962 crore. Earnings per share was ₹2.29. Book Value of shares was ₹40.70 and market capitalization improved from ₹365.60 crore to ₹1,043.67 crore.

In March, the bank’s board approved a rights issue to raise Rs.300 crore. Photo: CNBC TV18.

NDTV Ltd: Buy

CMP: Rs.227.25

Adani Group's price: Rs.342.65

Face Value: Rs.4

Market Cap: Rs.1466 Cr

TTM EPS: Rs.7.56

The stock of NDTV Ltd looks attractive buy after Adani Enterprises Ltd, through subsidiaries RRPR Holding and Vishvapradhan Commercial, took majority stake in it. Adani Group now owns 64.72% of NDTV, which runs three national TV channels. Photo: IndiaFacts.

This is Adani Group's strategy to gain a greater footprint in India's media sector as a part of its broader diversification binge to grow its empire beyond coal mining and ports into airports, data centres, cement, and digital services.

The CMP of Rs.227.25 is much below what Adani group paid as open offer. Moreover, post acquisition, the Board of Directors of New Delhi Television Limited  on a meeting held on May 17, 2023 granted approval for a proposal to request the Ministry of Information & Broadcasting for permission to launch 9 (nine) news channels in various Indian languages.

According to certain media reports, Gautam Adani has expressed his delight in assisting NDTV by providing top-tier talent and facilities, with the goal of developing it into a successful worldwide news organisation across multiple platforms.

The Media and Entertainment Sector (M&E Sector) usually outperforms the GDP. Now that interest rate cycle has probably peaked out, we can again see a massive GDP growth going forward.

Meanwhile, th advertising revenue was from e-commerce and education sectors, will continue to be money spinners for the media sector, especially for Digital domain, as Indian economy takes off with the advent of festival season.

However, the Business for the current financial year will depend on how the economy recovers, but advertising is expected to iccrease for the festival season and due to Lok Sabha elections due next year.

NDTV is already leveraging its huge leadership position in the online space to expand and grow its business.

NDTV Convergence Limited (“Convergence”) recorded its highest-ever revenue in 2020-21 and its highest-ever PAT of Rs. 27.91 crore and an EBITDA of 27.43%.

Google has partnered with Convergence as a premium publisher to launch its new content format in India,“ Webstories”. Convergence, on account of the credibility and popularity of its content, was also chosen to bea n early partner of the Google Convergence also received support from the Google Journalism Emergency Relief Fund.

On social media, NDTV’s following remains premium. NDTV is the most-popular news handle on Twitter with 17.70 million followers in India on 2nd July, 2023. The number of subscribers continue to soar for the NDTV YouTube channel and so is NDTV India. In Instagram too it is one of the most followed English news account.

Targeting a new younger demographic, Convergence has signed up as the preferred content partner for new platforms like Snap and Glance, which are phone-based.

NDTV videos across online platforms is also growing by leaps and bounds, shattering all previous records.

NDTV Food remains the country’s top online destination in its genre. It is the largest repository of 6000+ recipes from top chefs, restaurants, and home cooks. It is also popular for its restaurant reviews, home remedies and expert tips through articles and videos.

Some Useful Highlights:

1. NDTV 24x7 remains the most widely-distributed Indian News channel outside India.

2. Last year, NDTV launched its channels in Nepal and Bangladesh.

3. NDTV 24x7 is the only Indian English news channel available in the US on Comcast Cable, the world’s largest cable network, Virgin Media in the UK and Multichoice DStv in South Africa.

(e) The Company and its subsidiary NDTV Convergence Limited (“NCL”) have incubated e-commerce verticals to unlock the shareholders’ value and accelerate the Company’s leadership position on internet using transaction based model. 

As a part of incubation of new ecommerce businesses as promoter of these companies, the Company and NCL, had agreed to provide patronage through marketing and promotional support for 3 years including but not limited to advertising on NDTV channels, both domestic and international, bands on NDTV channels only out of unsold inventory, anchor mentions, programme names, night time programming, promotional product launches, access to the homepage, redirection of visitors/traffic from the website of NCL to the website of the ecommerce verticals on no charge, best effort basis. 

The Company & NCL would not be incurring any incremental costs as a result of providing such services but will accommodate and support these new companies by contribution of residuary resources in a gratuitous manner. This is in expectation of future benefits that are expected to flow to all shareholders of the Company and NCL.

Sector news: The media sector has been growing tremendously since the last few years and this is the reason, this sector has become one of the highest-income grossing sector in India.

Epecially after the COVID-19 outbreak, the media industry has seen rapid growth, when people were forced to sit at their homes, and spent their times watching Netflix and Amazon Prime.

As per a forecast, the Indian media and entertainment industry will reach ₹2.4 lakh crores by 2024, resulting in the growing sales of Smart TVs, digital segments, film segments and animation & VFX segments. 

The Indian media and entertainment sector is seemingly on an upward trajectory. According to a FICCI-EY Report in 2021: While print media witnessed a resurgence, the Television sector maintained its position as the largest segment in Indian media and entertainment with digital media following in second place.

In terms of advertising, digital media is contributing the highest share of advertising in India.

According to another estimate, the media and entertainment sector is set to grow Rs..734 billion to reach Rs.2.83 trillion by 2025 at a compound annual growth rate (CAGR) of 10.5%. 

The contributors to the growth of the media and entertainment segment are believed to be digital, online, gaming, and television which will account for an estimated 65% followed by animation and VFX at 11%, live events, and films at 8% each.

According to the report, the Indian advertising industry grew at 18.1% over 2021 and is expected to witness a compounded growth of 15.07% by the end of 2024. 

Digital advertising in India continued to be at the tip of the iceberg with a substantial spike of 39.5% over 2021, putting TV advertising in a tight spot, the report said.

The report also states that the Indian digital advertising industry stood at a market size of Rs.29,784 crore, growing at 39.5% over 2021, and is predicted to reach Rs.51,110 crore, with a compounded growth rate of 31%, by 2024.

Talking about the increasing digital appetite, the report mentions that digital media is expected to overtake the ad spends share of television in 2023, putting TV advertising in a tight spot. Digital media spends is driven by social media with a contribution of 30%, followed by 28% from online video and 23% from paid search, highlights the report.

The report further shed light on some interesting numbers:

➡️The spend on online video is expected to grow rapidly and be at par with social media spends by 2024.

➡️The FMCG sector contributes 30% of total advertising spends, followed by the e-commerce category at 18%. Hence, the fortune of FMCG sector is related to Indian Media space.

➡️FMCG and e-commerce are the largest contributors to the digital media industry, accounting for 38% and 20%, respectively, followed by consumer durables, pharmaceuticals, and automotive.

Due to the rapid adoption of the next generation of Web3 technologies and the development of mass markets, Indian consumers’ expectations are set to evolve toward convenience, commerce, experiential media, and marketing in the new digital economy.

The evolution of the new digital economy will lead media sector. 

Conclusion: Looking at the above points and considering the stake sell by the promoters of NDTV Ltd at Rs.342.65 against the CMP of Rs.227.25, the stock appears to be a good bet for the short to medium term.

Prudent investors can buy the scrip of NDTV Ltd near the CMP for targets of Rs.400/450 in the coming days. SL: Rs.295.

Bibliography: 

🍥The Financial Express.

🍥 Wikipedia.

🍥 The Business Standard

🍥The Economic Times.

🍥CNBC TV18.

🍥Moneycontrol.com

🍥Daily Mint.

 Market Mantra

In the afternoon trade, the domestic equity benchmark indices reached new intraday highs. The Nifty is currently trading at 19163, up roughly 190.90 points and is hovering around the 19,150 levels. European markets rose, while most Asian markets traded in the green. In this bull market most stocks are likely to rise up. Photo: Swaraja.com

The Nifty and the Sensex hit all-time highs in afternoon trade at 19,160.10 and 64,593.74, respectively. Meanwhile, the Nifty_Bank Index also registered its fresh record high at 44,758.45. 

In an intersting development according to RBI's latest Financial Stability Report, the asset quality of the MSME portfolio of all SCBs showed improvement during FY23 with the gross NPA ratio nosediving from 9.3% in March 2022 to 6.8% in March 2023. At this juncture you need to be patient, pick up good beaten down stocks during market dips and hold on to your positions with appropriate stop losses.

#Today most of the stocks in the Adani pack came under pressure around 3.20% of the equity of Adani Transmission Ltd (Rs.769) changed hands on a block trade in Friday morning at an average price of Rs.795 apiece, taking the total value of the transaction to Rs.3,103 crore, according to exchange data published by CNBC TV18 website.

In another Development, last month, Mahen Kumar Seeruttun, the minister for Financial Services and Good Governance in the Mauritian government, said a company from overseas needs to carry out its core income-generating activities in, or from, Mauritius, as required under the Income Tax Act. Rejecting the claims made by Hindenburg Research, Mauritian Parliamentarian, called the claims of the presence of Shell companies of the Adani Group in Mauritius, to be “false and baseless". The short-seller, Hindenburg in its report, alleged the presence of Adani Group's shell companies in Mauritius, UAE, and the Caribbean islands.

Post Hindenburg torpedoes, the Adani Transmission Ltd's shares are trading at over 80% discount from their 52-week high of Rs.4,236.75. This implies that the stock must surge 5x - times from the CMP to achieve this level. Today's deal was executed at ~Rs.795 which means the share should close above this price. You need to accumulate during market declines.

#The stock of PC Jewelers Ltd (Rs.26.35) today rose to Rs.26.70. The festival season has kicked off with Bakri Eid, and is likely to continue till Christmas, followed by marriage season. You need to buy the shares of Jewellery and Apparel companies and hold at least till Deepawali. 

#The shares of NDTV Ltd (Rs.227.60) today moved to Rs.333.95. It is now an Adani group company. Adni Group acquired Pronnoy and Radhika Roys' stake in NDTV Ltd at the price of Rs.342.65 per share.

#The shares of Nahar Spinning Mills Ltd (Rs.271.25) is hovering around the price band of Rs.267 - 292. However, the ensuring festival demand is likely to push the scrip above Rs.300. You need to buy and keep holding. It is one of the top textile companies in India.

 Market Mantra

The BSE is now trading at 60,516.48 up 423.51 points (+0.70%), while the Nifty was last seen at 18,007.25 up 112.40 points (+0.63%). However, this green tick in the indices belies the bigger sell off in the broader market.

#Today the shares of Zomato Ltd (Rs.50.70) broke Rs.52/53 ranges. Hence I would suggest to avoid fresh buying, unless it gives a closing above Rs.52.70. Put SL at Rs.47 on closing basis.

I'm finding some pattern in selling. I had tagged SEBI and Mr.Kirit Somaya on Twitter and asked them to look into the matter.

Ironically, the shares of Zomato Ltd is getting sold off at a time when Nationwide Lockdowns have been lifted and intense cold is preventing people from going out. In such a weather it is just a no brainer to think that people will order food through mobile, for home delivery. Moreover, 1 Million plus order on the new year day is not a joke. Even if we take a minimum of Rs.10 as the average net margin per order, the profit could be in crores. 

Interestingly, the average cost of acquisition of Zomato Ltd's shares by Info Edge (India) Ltd, one of the largest shareholders of the company, according to disclosures made in the draft document, is only Rs.1.16. Hold with SL mentioned earlier.

#The stocks of SEPC Ltd (Shriram EPC Ltd) made an intraday high of Rs.14. Those who have bought the share on my recommendations has already doubled their investment values.

#The stock of Piramal Pharma Ltd (Rs.115) is available at dirt cheap price. Accumulate!

#Those who are holding Indowind Energy Ltd (Rs.15.20) are entitled for Rights Issue. There are some positive developments in the  company as per my sources. You can accumulate.

#The shares of BPL Ltd (Rs.75) has again spurted today. You may book some profits and hold the rest with a SL at Rs.72.

#Accumulate the shares of TV18 Broadcast Ltd near Rs.36/37. The falling of inflation is positive for TV Channel companies.

 Market Mantra

The benchmark Nifty is down 60.20 points to 17,828.45 after the FPIs went for heavy selling yesterday. However, the Nifty should hold 17,200 on the downside as there are no major negative news on the inflation front. The action should now depend on stock selection, as the days of low hanging fruits 🍓🍓🍑🍑 are probably over. Those who have experience in the market will survive, the rest are likely to burn their fingers. 

Those who have a portfolio size of around Rs.2 lakhs can join my profit sharing scheme of 60:40, between you and my consultancy. The stocks will be chosen basically on fundamental basis, though technical angle can't also be overlooked. 

#Accumulate the shares of Nahar Spinning Mills Ltd near Rs.281, for targets of Rs.320/350. SL: Rs.257. Drastic fall in the price of cotton is positive for the textile companies.

#The stock of Indowind Energy Ltd (Rs.15.70) hit another lower circuit today probably on the fear that the company would become insolvent.

But at present, there are no such issues, and it was just a normal hearing and settlement at a NCLAT court. The prudent investors looking to subscribe to the rights issue at Rs.12,s slowly accumulate the scrip, till the record date.

#Buy Zomato Ltd near Rs.54.20, T: Rs.61/62/67/71. SL: Rs.51.60. 

It tanked heavily on Sentimental issues after one of its Co-founder & Chief Technology Officer, Gunjan Patidar recently resigned. But now the sentiment is improving & it has found a support around Rs.53.80 -- Rs.54.

#Accumulate the shares of A2Z Infra Engineering Ltd (Rs.9.70) in market declines. The company's telecom tower business is expected to pick up steam in the near future. The stock should double from the CMP.

#Accumulate the shares of Piramal Pharma Ltd (Rs.115.90) for targets above Rs.200. A number of brokerage house have given a buy on the stock.

#The scrip of D B Realty Ltd (Rs.89.20) hit the Buyer Freeze today. You should always accumulate such news driven scrips in market declines.

#Accumulate the shares of TV18 Broadcast Ltd near the CMP of Rs.36.70, for short term targets of Rs.41/45. With inflation coming down, the broadcast companies could see more advertisements spendings.

 Tit - bits

*D B Realty Ltd (Rs.91)* has taken the support at Rs.87/88 ranges and is moving up. We can again see the targets of Rs.131/135, as the company is selling its Andheri East land parcel at a whooping Rs.480 Cr. Also, if the media reports are to be believed then it is a takeover candidate by *Adani Group*. As per market rumour, they are likely to name it *Adani Reality*.

*A2Z Infra Engineering Ltd (Rs.10)* has tied up with Airtel for installation of telecom infrastructure in India. Accumulate!!

*RTN Power Ltd (Rs.4)* the erstwhile Indiabulls Power, an  A - grade power company, is struck up in a range. It will however break out of the current levels as its fundamentals are improving constantly. It has two sprawling factories in Amravati and Nashik, the former is *profitable*, while the latter is slowly coming out of debts. *You can start to accumulate once it gives a closing above Rs.4.20.*

The *Mukhesh Ambani owned media Behemoth, *TV18 Broadcast Ltd (Rs.37)* is consolidating around the current ranges, before charting the next upmove. The fall in inflation is likely to push up advertisement revenues of the company.

-----------------------------

*Important:* When the market is not in Bull 🐂 phase, the prudent investors should accumulate, beaten down small caps to make windfall gains during the Bull run, which generally comes after every couple of years. 

Moreover, the NDA Government could come up with a *Populist Budget* this year in view of the ensuring *Parliamentary elections*, next year. This may give us the required opportunity to make good gains from our investments.

 Market Mantra

#Buy the shares of Mukhesh Ambani Company, TV18 Broadcast Ltd near the CMP of Rs.37.20, for short term targets of Rs.41/42, SL: Rs.35.

Triggers:

Analysts believe that amendments to the new tariff order (NTO 2.0), combined with industry consolidation, will keep broadcasting stocks buoyant in the short term.

Furthermore, as raw material costs decline for the majority of business enterprises in the second half of the current fiscal year (H2FY23), it is expected that advertising spending will increase in the following quarters.

#Buy the shares of A2Z Infra Engineering Ltd near the CMP of Rs.10, for short term targets of Rs.17/19.

 Winning Strokes

The BSE Sensex closed flat today at 52,372.69 down 13.50 points  (-0.03%) while the Nifry50 ended the day at 15,692.60 up 2.80 points (+0.02%). The indices are likely to consolidate around the current ranges, while the action will be shifted to small and mid cap counters.

#As expected the scrip of Future Retail Ltd (Rs.66.60) hit the upper circuits today. The stock according to my estimation, should cross Rs.100 by this Deepawali. Keep accumulating in dips. 

#Those who have a portfolio size of Rs.3 lakhs plus,  can join my #Crorepati #Scheme, where you would be systematically guided, so that your portfolio reaches Rs.1 (One) crore mark. You can also join my premium service or trade through my associated brokerage house and get my premium information service free of charge. 

#The stock of Reliance Capital Ltd (Rs.21.25) could hit the upper circuit tomorrow. On 5 July,  2021, there were media reports that the private life insurer Reliance Nippon Life Insurance had come up with a total bonus of Rs.306.88 crore for its participating policyholders in 2020-21.This bonus issuance will benefit over 6,85,000 participating policyholders, as per company release.

The bonus was paid out of the profits generated by the company's participating policyholders' funds for the year FY 2020-21. It registered a profit after tax of Rs.50 crore in the year ended March 31, 2021.

Reliance Nippon Life Insurance is a joint venture between Reliance Capital and Nippon Life Insurance, Japan. As of March 31, 2021, its total assets under management (AUM) stood at a massive Rs.24,383 crore and the total sum assured at Rs.78,847 crore. The claims settlement ratio was a whooping 98.48%. Photo: Zee Business 

Meanwhile, Anil Ambani's Reliance Group company, Reliance Capital Ltd, has almost finalised buyer for its subsidiary Reliance Commercial Finance. Authum Investment and Infrastructure has emerged as the highest bidder with Rs.9017 crore.  At Rs.2,887 crore, Authum Investment and Infrastructure is also leading the race to acquire Reliance Housing Finance (RHFL), another subsidiary of Reliance Capital.

#The shares of my recommended BCPL Railway Infrastructure Ltd (Rs.58.80) today hit Rs.60.40 intrday. The stock if you remember was recommended a few weeks back at around Rs.55. You need to keep a SL at Rs.56 and keep holding. 

#Meanwhile the shares of Patel Engineering Ltd (Rs.18.95) could hit upper circuit tomorrow as it is among the 9 - companies whose loan recast has been approved by Kamath Committee, according to a report published by CNBC - TV18. 

According to the CNBC - TV18, banks referred only nine large corporate loan restructuring proposals to the KV Kamath-led Expert Committee under RBI’s resolution framework of August 2020. 

All of these nine corporate loan recast proposals were subsequently cleared by the committee ahead of its dissolution on June 30, 2021, CNBC-TV18 has learnt.

Mukhesh Ambani's AGM and Den Networks Ltd

Some of my friends are disappointed that in the recently held AGM, Mukhesh Ambani didn't spell out much for its Broadband, Cable TV business & its media wing TV18.  Photo: 1: My Brand Book

But the news is already there in the public domain: 

#Facebook will invest Rs.43,574 crore in Reliance Jio Network. 

Now look at this: Den Networks (Rs. 57.90) is into Broadband & Cable TV. 

Moreover, the combined strength of Den Networks (Rs.57.90) & Hathway Cable is 27,000 - plus LCO partners who act as the touch points to 15 million - plus households. Photo:2: Zee Business 

The figures are set to increase further as more and more cities are covered by them. 

This is already a massive figure & RJio's collaboration with Facebook who are investing Rs.43,574 Cr will give further muscles to these two companies. 

Isn't it amazing? Just think.... 😊😊 

You should therefore accumulate the shares of Den Networks Ltd in all market declines. I'm expecting it to double in the next 6/9 months time frame. 

 Winning Strokes 

The BSE Sensex is trading at 49,649.32 down 117.62 points  (-0.19%) while the Nifty50 was seen at 14,843.25 down 35.65 points (-0.21%). The Nifty is likely to trade in a range between 14250 - 15000. Hence, you can shape your trading decisions based on this.  

#The shares of Future Retail Ltd is now trading at Rs.50.15, after hitting a low of Rs.47.80 intraday. The company is revamping its businesses, after the shopping malls opened post Lockdown. It is also not worried too much with working capital requirements as it is getting support from RJio Mart in the form of an extended credit. Infact it is Mukesh Ambani who is running the show for Future group. Photo: Yosucces.

Moreover, according to a news on Live Mint, 22 March, 2021:

Lenders to Future Lifestyle Fashions Ltd have prepared a draft debt resolution plan that will give the company that runs the Central and Brand Factory outlets a two-year repayments moratorium, but no concession on interest rates, according to two bankers aware of the plan.

According to a report published in The Times of India:

Future Retail will deliver groceries and clothes from its main retail stores within two hours, it said on Thursday, as the company expands in an e-commerce sector dominated by the likes of Amazon.com. This alone is sufficient to shore up its balance sheet, even if there is no Footfalls in their showrooms.

Hence, you need to average the shares if you have bought at higher price or can take fresh positions. 

Amazon. com itself is embroiled in lot of controversial issues, if media reports are to be believed. They are probably playing around to obfuscate the main issue. 

According to a report published in Business Standard on 18 March, 2021:

A  trade association on Wednesday asked the government to take "strict action" against Amazon and Flipkart, accusing the e-commerce companies of violating India’s rules on foreign direct investment (FDI).

In another development, the Confederation of All India Traders (CAIT) in a letter sent to Union Commerce Minister Piyush Goyal has said that foreign entities like Amazon and Flipkart are hell bent on ruthlessly destroying the Indian retail sector with their deep pockets and expansive lobby of legal experts who will stop at nothing before trampling the lives of over 40 crore Indians. 

In another report on CNBC TV18:

Kishore Biyani-led Future Retail’s Big Bazaar has launched a two-hour delivery service for fashion, food, FMCG and home products on the retail chain’s website or mobile app as it looks to expand its presence online.

Future Retail Ltd suffered due to the nationwide Lockdown, but now with the emergence of its online wing, its fundamentals are set to improve considerably, regardless of the pending court cases.  Bottomline is Amazon.com  can only restrict Reliance from purchasing, but it can't do anything to restrict the improving fundamentals of the company. Infact Amazon would also not like its Rs.1500 crore investment in a group company of Future Retail Ltd to sink. Hence, an out of court settlement is on the cards. 

Buy, the Shares of Future Retail Ltd in all declines and keep holding. Traders are unnecessarily thinking too much negative on the company when there is only positive and positive. 

Tit - bits

Though Thursday's trade was marked by volatility due to the expiry of weekly index options the key equity benchmarks ended near the day's high. 

The barometer BSE Sensex surged 419.87 points or 1.16% to close at 36,471.68, while  the Nifty 50 index soared 121.75 points or 1.15%  to end the day at 10,739.95.

In the broader market, the BSE Mid-Cap index rose 0.71%, while the BSE Small-Cap index fell 0.13%.

Sellers outpaced buyers. On the BSE, 1078 shares rose while 1528 shares fell. A total of 164 shares were unchanged.

IT major Infosys Ltd jumped  9.56% to Rs.910.90 after its net profit rose 11.45% to Rs.4,233 crore on 8.54% increase in net sales to Rs.23,665 crore in Q1 June 2020 over Q1 June 2019.

#Those who have not booked profit in Bank Nifty 23000 strike price call options of 30 July Expiry can continue to hold with targets and SL in mind.  

You must have read the media reports that China's economy rebounded from a painful contraction to grow by 3.2% Y-o-Y in the latest quarter, as anti-virus lockdowns were lifted and factories and stores re-opened. In the same way, we are getting unconfirmed information that we are perhaps attests the last leg of Covid - 19 pandemic in Mumbai. Once, the schools and colleges starts to reopen the banks which are a barometer to any economy, will start to pick up steam. 

It is interesting to note that after I started with options this time, both my earlier (last two day's) calls came out to be 100% accurate. Stay tuned! 

#Buy the shares of Virinchi Ltd near Rs.27/28, for short term targets of Rs.33/34. SL: Rs.25.
It has a book value of Rs.

Vrinchi Ltd is engaged in software development business and has its headquarters in Hyderabad, India. Its business is diversified into software products and services, IT enabled services and infrastructure services.

It has a Market Cap of only Rs.93.25 Cr, P/E of 5.53 against the Industry P/E of 21.75 and Book Value of Rs.81.10.  Its March quarter EPS on consolidated basis is Rs.3.29.

• At the end of last year, the company got a Rs.20 Cr order Aadhar enrollment order in Telangana and will be realized over 2 years (end of 2021).
• The Board of directors of Virinchi Ltd in its meeting held today, has considered and approved the launch of 'vCard - India's First UPI Based Credit Card' on September 28, 2019.
• vCard (www.vcard.ai) is India's first UPI based credit card and a lending solution, delivered as a Mobile App, thereby allowing: paperless credit card set up, UPI based payments to any QR & contextual customer engagement based on location & spending behavior.

In the mid term, the share can double from the current price.

#The shares of Spandana Spoorty Financial Ltd (Rs.605) is hitting LCs after profit booking was suggested in the counter. The stock might find support at around Rs.499/500, where you  can again return enter.

#The shares of GVK Power and infrastructure Ltd  (Rs.2.24) has been continuously hitting newer lows everyday. 
I remember, around a couple of years back, many of the business channels especially ET Now and CNBC TV18 were happily canvassing the views of Porinju Veliath, a well known NaMo sympathetic operator. 
These people at that time were giving high targets even at Rs.18/19, much to my displeasure. As a result the stock zoomed to around Rs.25/26. 
I wrote many times about this in my old Twitter account and also in this blog. But in a country, where is hero worship is given higher priority, such things are normal. Therefore, I don't get surprised when Bhuban Bam's semi porn channel, B B Ki Vines, gets so many YouTube subscribers -- even females are seen applauding his otherwise raw presentations.
Anyway coming to the main topic, the business channels and Porinju Veliath are now nowhere to be seen, as usual. But when stock flies, you will see smiling TV anchors repeatedly announcing the credit of the recommender. 
However, you must have noticed that these days the frequency of Porinju Veliath's TV visit and his dumping of YouTube videos have also slowed down. 
I remember the harsh demonetisation days, when Porinju Gang, was blindly backing the stupidity of Narendra Modi, justifying the move. 

Winning Strokes: Think Different

The stock of Vakrangee Ltd (Rs.66.85) almost doubled from the recommended price of Rs.33-34. The stock could find the next resistance around Rs.75, which also happens to be its 50D EMA. When I recommended the stock most from CNBC TV18 and Times Now, were bearish on it and were highlighting the corporate governance issues. Those who had taken my call at that time is now laughing their way into banks.

SKM Egg Products Ltd (Rs.80.50), which is one of the largest egg exporters from India, is planning to triple its domestic market share and achieve ₹500-crore turnover by 2021-22. According to a report on The Hindu, the company's Eggs are exported to more than 26 countries, including Japan, Europe and Russia. On a daily basis, the company processes more than 16.5 lakh eggs per day of which 5.5 lakh eggs are processed in-house and rest procured from private parties.
Though, for the full year, net profit of the company declined 46.37% to Rs.0.96 crore in the year ended March 2018 as against Rs.1.79 crore during the previous year ended March 201; sales rose 44.32% to Rs.282.07 crore in the year ended March 2018 as against Rs.195.45 crore during the previous year ended March 2017.
Lurking fear of Food inflation accompanied by Festive Demand is likely to keep the price of eggs buoyant in the coming days. You can add the scrip in every decline with a short term target of Rs.97.

The scrip of TV Vision Ltd (Rs.8.30) is consolidating near Rs.8-9 ranges. As mentioned umpteen number of times earlier, the scrip is from the reputed Sri Adhikari Brothers and hence, I am expecting it move to Rs.14 by the end of October, '18.

I will probably recommending a momentum counter on Monday. Those who want to invest in that scrip should get enrolled in my Premium Service by Sunday. Also, those who want to know about MBL Infrastructure Ltd (Rs.14.85), 3i Infotech Ltd (Rs.4.32), Urja Global Ltd (Rs.3.43), NDTV Ltd (Rs.51.45) etc, should either trade through my recommended brokerage house (BMA Wealth Creators Ltd) or get enrolled in my Premium Service. Making money from the stock market is not that easy and these days, it is becoming difficult even for the experts to eke out cash from the markets on regular basis. 

Stock market is no longer a PART TIME business. If you do not have time for research, then don't come here and burn your hard earned cash. Invest in Real Estate or Fixed Deposit and enjoy a hassle free life.  Also, if you have lost money in the past, then don't lose hope; gather some funds from somewhere and come to me, I will help you in this respect. 

Winning Strokes: Think Different

The stock of Bhusan Steel Ltd (Rs.40.40) which was recommended around Rs.22.65 to those who are subscribed to my Premium Services and to those who are trading through BMA Wealth Creators Ltd is going on for some correction after a long BULL run. The Premium Members were asked to book profits at around Rs.42-45. I hope most of them and those who are trading through my recommended brokerage house have made good profit on this scrip. These days, it is a little difficult to make money only following this blog, unless you do some research on the scrips, mentioned here.....the days of making money from the share market through fluke or "Tukka" is probably over -- there is a need for taking of specialized help, because you are competing with CAs, ICWAIs, MBA Finance Professionals, Veteran Market Players, etc.

I have given a buy on the share of Vakrangee Ltd (Rs.34.15) to my Premium Clients yesterday. The scrip is trading near its 52-week low price of Rs.31 and have lost more than 80% since the start of 2018. The shares have low downside considering the current developments. Some Business Channels like Bloomberg-Quint and CNBC TV18 are unnecessarily creating fear psychosis among the shareholders, after the company parted ways with its previous auditor, i.e. PwC; as if this is the first time it has happened in a listed company. According to the management Vakrangee Ltd 's EBIDTA is equivalent to its PBT. 

The point is that: if the financials of the company are so pathetic why would the new auditors agree to take charge of the company? Are the new auditors not aware of pros and cons of misreporting? Meanwhile, the company's treasury committee has also revised its investing policy, where it would now invest ~90% of its surplus funds in debts and the rest 10% through Mutual Funds -- the direct investing in equity shares has been discontinued. The company is having around 44,000 "Vakrangee (Seva) E-Kendras" in India spread across 16 states and ~15000 of them are in Rajasthan alone. The management claims it to be a debt free and the market cap of the company is only Rs.3,615.81 crore. The company has a good business model, however  the accumulation of NPAs in the banking sector is a cause of concern. Buy the shares of the company with a SL at Rs.26 and hold them for 3-6 months, for at least 50% appreciation from the CMP of Rs.34.15. Prudent investors, should buy a scrip it is out of the radar of the general investors.

The stock of Gitanjali Gems Ltd (Rs.7.11) is going in for correction after making a recent high of around Rs.7.4. The target for the scrip for the premium members was given Rs.9, which it almost reached. However, those who bought the scrip at around Rs.4.65, for their money nearly doubled during the last few weeks. Congratulations to all those who could make money in this scrip. 

The scrip of Reliance Communications Ltd (Rs.14.50)  is consolidating around Rs.14-15 ranges, after it reached its 1st target of Rs.21, some days back. You can buy the scrip with a SL at Rs.11.60.

Lot of the "Blog Readers" who have not exited at the Stop Losses, have asked me (through e-mails) about some of my previous recommendations like: MBL Infrastructure Ltd (Rs.15.35), 3i Infotech Ltd (Rs.4.42), Jai Balaji Industries Ltd (Rs.9.65), Future Enterprises Ltd (Rs.35.90) , TV Vision Ltd (Rs.9.63) etc. But for personalized information or for my opinion on specific scrips, you either need to subscribe to my Premium Service or Trade through BMA Wealth Creators Ltd. 

Also, the offer for the small investors who have lost money, to start again with minimum fund through BMA Wealth Creators Ltd is over. Now, you need to have a portfolio size of around Rs.2 lakhs to get FREE PREMIUM SERVICE. You can reach me at: suman2005s@rediffmail.com or sumanm2007s@gmail.com.

Winning Strokes

Photos: Colossos

The Indian bourses got support at around near 9981, as mentioned to the Premium Members during the market hours yesterday. The pullback rally made the Nifty gain by 132.60 points or 1.33%. The Nifty is likely to get some resistance near 200-DMA, but the short term trend remains bullish.  

The stock of Reliance Infrastructure Ltd which was recommended around Rs.422 yesterday, moved to Rs.429.15 in the NSE before closing at Rs.424.80. Today, if the market remains buoyant, then we could see Rs.433-437 - 441-447 levels. 

The scrip of MCX Ltd (Rs.688.75) moved to Rs.698, after it was recommended around Rs.681, to the Premium Members. The company is likely to launch two more products in April 2018. In an interview to CNBC-TV18, Mrugank M Paranjape, MD & CEO of Multi Commodity Exchange of India (MCX) said that  the exchange is witnessing positive increase in volume in the 45-50 days of Q4. In January, this year SBI Mutual Fund bought 8,19,048 shares of Multi Commodity Exchange of India at Rs.840.50. We can look for targets of Rs.797-820 in the coming days.. 

The share of 3i Infotech Ltd yesterday moved to Rs.5.25 in the  NSE before closing at Rs.5.05. With the IT industry undergoing rapid changes in recent years, whether it is on, the software side or new business models, software companies are forced to adopt or make crucial changes to their overall strategies in order to stay relevant in the changing times. And that’s what the Mumbai based software product company 3i Infotech has done in recent years by planning and executing a three-stage business strategy of ‘protect-consolidate-grow.’ To a large extent, this strategy has been successful in helping 3i Infotech to revive and revamp its overall business, software product portfolio, customers, revenue, and growth. You can start averaging and we can look for targets of Rs.5.70-6.90-7.85 in the coming days.

Today, during the market hours I will recommend a short term momentum counter to the Paid Group members. Join the Premium Group or trade through my associated brokerage house with a minimum portfolio size of Rs.3 lakhs to get the name of the scrip; which is likely to cover your subscription charge. 

Also, note that I have decided to give Special discounts on the subscription charge, to the SMALL INVESTORS, till 15th April, 2018. So hurry up!! The market has become so competitive these days, that it is getting increasingly difficult to make money on a consistent basis even for the experts.