Indowind Energy Ltd: Buy

CMP: 13.45.

Book Value: Rs.25.74.

Market Cap: Rs.169 crore.

Introduction: 

Indowind Energy Limited (IEL) has been in the business of power generation through wind mills since its inception in July 1995. It is one of the pioneers in the renewable energy sector and is managed by professions with experience in diverse fields.

Shri Bala Venckat Kutti, Indus Finance Limited, and Loyal Credit & Investments Limited are the company's promoters. 

Over the course of 27 years, the company has consistently grown in this sector. The Company set up its first wind Mill in Tamil Nadu having a capacity of 225 MW.

Interestingly, the windmills of the company are situated in the highest wind potential areas in the states of Tamil Nadu and Karnataka. As on date,  Indowind Energy Ltd is having 123 windmills having capacity of 49.645 MW spread across the states of Tamil Nadu and Karnataka (Tamil Nadu: 29.55 MW and Karnataka: 20.095 MW). 

Apart from this another 12.50 MW capacity windmill will be operational within the next 6 - months; the capacity of this windmill will be increased to 50 MW, within a couple of years.

Salient features:

💥 Indowind Energy Ltd is the First Independent Power Producer to commercially exploit wind for generation of Electricity.

💥It has nearly 3 decades of experience in the Wind sector.

💥In has proven track record and technical expertise to generate power from wind.

💥It sells power sales to Electricity Boards and large Corporates. Better realisation is achieved through private sale.

💥It is the 1st Wind Energy Company to get carbon credits from UNFCCC and has registered “Green Power” as its trademark.

Shareholding Pattern: 

The promoters hold 44.76%, while  of the general public holds 55.24% of the shares of the company, respectively. 

Among the general public, the Export Import Bank of India holds 4.46% of the shares of the company. On the corporate side Commendam Investments Pvt Ltd holds 1.59% of the shares of the company. 

Financials:

The company came out with good set of numbers for the December 2022, quarter:

💥Revenue: ₹75.7 million (up 80% from 3Q 2022).

💥Net income: ₹1.43 million (up from ₹2.16m loss in 3Q 2022).

💥Profit margin: 1.9% (up from net loss in 3Q 2022). The move to profitability was driven by higher revenue.

💥EPS: ₹0.01 (up from ₹0.024 loss in 3Q 2022).

Source: Simply Wall.

This positivity is expected to continue in the following quarters (post rights issue), as the interest outgo will decrease substantially. 

Rights Issue: The Company has come with Rights issue of 3,58,96,594 shares of Rs.10 each, at a premium of Rs.2 per share; aggregating to Rs.430.8 million (Rs.43.08 crore). 

Details:

Issue Opened: 27 Jan, 2023

Issue Closes: 10 Feb, 2023

Issue Size (shares): 3,58,96,594

Issue Size (amount): Rs.43.08 crore 

Issue Price: Rs.12/share 

Record Date: 13 Jan, 2023 

The main objective of the Rights Issue is to substantially reduce the secured loans and progress towards making the company, DEBT FREE.

National Company Law Appellate Tribunal (NCLAT) Case: 

Few weeks back, the two prominent stock exchanges, the BSE and the NSE decided to stop trading in the scrip, for a couple of days, due to delay made by the company in sending the notice regarding postponement of the hearing to 20 January, 2023, to them.

It will be pertinent to mention here that, in September, 2020, Exim Bank dragged the company to NCLAT for the settlement of its loan. The settlement amount was pegged at Rs.48 crore out of which the company has already paid Rs.15 crore. The company will pay the remaining Rs.33 crore from the proceeds of the Rs.43.08 crore Rights Issue and become almost DEBT FREE – only a small debt of Rs.5.35 crore from a lender will be left.

Cons: 

💥Selling of “Green Power®” given the nature of its business, concentration of the plants in few States and also the issue of shortage of power, demands special marketing setup to cater to the requirements of clients, since the power generated from its wind farms are sold under Group captive scheme to Corporates. 

💥Though there are not many IPP’s in India, in the wind energy space, selling power to corporates puts IEL in direct competition with the SEB’s.

💥 Closing of Accelerated Depreciation Scheme in 2017, has slowed down the wind energy space.

Upcoming Projects: 

The company is in the process of setting up and acquiring wind farms in Karnataka and Tamil Nadu. The company has already acquired land banks in Tamil Nadu & and Karnataka and completed the Micro sitting and Wind Resource Assessment study. The company has around 300 acres of land bank in Tamil Nadu and Karnataka.

Wind Power Sector: 

While the Indian Power Sector is undergoing significant growth, sustained economic growth continues to drive electricity demand in India. 

The Government of India is focussing on attaining “power for all" and this has accelerated capacity addition in all segments of the sector. India is the third largest producer and second largest consumer of electricity worldwide, with an installed power capacity of 401.01 GW as on 30th April 2022.

Wind Power Policy of the Union Government:

💥Concession on import duty on specified wind turbine components.

💥10 year income tax holiday for wind power generation projects.

💥Concessional custom duty exemption on certain components of wind electric generators

💥100% exemption from excise duty on certain wind turbine components.

💥REC Mechanism.

💥Waiver of Inter State Transmission System (ISTS) charges and losses for inter-state sale of solar and wind power for projects to be commissioned up to March, 2022.

💥Permitting Foreign Direct Investment (FDI) up to 100% under the automatic route.

💥Implementation of Green Energy Corridor project to facilitate grid integration of large-scale renewable energy capacity addition.

💥Technical support including wind resource assessment and identification of potential sites through the National Institute of Wind Energy, Chennai.

💥IREDA finance scheme for wind power projects. Now, getting finance has become quite hassle free.

💥Special incentives provided for promotion of exports from India for various renewable energy technologies under renewable sector specific SEZ.

💥Feed-in-Tariff (FIT) scheme for wind projects upto 25 MW.

💥GBI scheme for grid interactive wind power projects commissioned before 31 March 2017.

Source: Indian Wind Energy Association.

Conclusion: Since IEL sells power under the banner “Green Power®”, many triple “A” rated corporates directly buy from IEL to meet their CSR needs. This gives the company, some sort of stability in its earnings.

Moreover, the company maintains high quality while supplying power. It meets the norms of the Grid code so that the electricity produced is fed into the grid at the desired frequency without affecting the regional Grid operations.

Besides, while selecting the wind turbines, proper screening is done based on site and wind conditions to match the appropriate machine to be installed.

Considering the above points, the investors can take position in the shares of Indowind Energy Ltd near the CMP of Rs.13.45 for medium to long term targets of Rs.25 and Rs.32. SL: Rs.12.60.

 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.

 Indowind Energy Ltd: Some thoughts

Introduction: Indowind Energy Limited develops wind farms for sale, manages the wind assets, and generates Green Power for sale to utilities and corporates. 

It also does turnkey implementation of Wind Power Projects, from concept to commissioning. It also undertakes Wind Asset Management Solution for installed assets, including operations, billing, collection of revenue to project customers. Supply of Green Power to Customers. It is also into CERs (Carbon Credit) Sales and Trading.

Rights Issue and other details: 1st let me start with Carbon Credits, Indian companies have registered 1,669 projects under CDM and earned 246.6 million credits; another 526 projects were registered under the ‘voluntary’ market and these have earned 89 million credits. Thus, in all, Indian companies got roughly 350 million credits.

To begin with, Indian enterprises registered 1,669 projects under the CDM and earned 246.6 million credits; another 526 projects were registered under the 'voluntary' market and received 89 million credits. Thus, Indian firms received approximately 350 million credits in total. These credits are known by different names in different jurisdictions. They are known as 'certified emission reductions,' or CERs, under the CDM.

It is subject to market price, much like stocks. At its peak, they were selling for $25 per CER. Indowind Energy Ltd (Rs.18.10), a wind energy startup based near Chennai, sold some for $15 each. Back then, experts projected that India may profit up to Rs 45,000 crore by selling the credits.

The market then dropped. A CER was valued worth 25 cents in the CDM market and a $1 in the voluntary market in the beginning of last year (2022).

Q. What are Carbon Credits or CERs and are their current prices?

A successful approach for lowering greenhouse gas (GHG) emissions is critical to the success of climate change policy. Policymakers and businesses use carbon pricing to reduce GHG emissions by putting a price on carbon.

Climate change is no longer regarded as a'soft' political issue, because of overwhelming scientific evidence, linking manmade emissions from fossil fuels, such as carbon dioxide and methane, to global warming. Since its inception in the early 1990s, carbon pricing has become an increasingly prominent method in global environmental policy for decreasing GHG emissions.

One carbon credit certifies that one metric tonne of carbon dioxide has been removed from the atmosphere.

Most prices of carbon credits are below the $40-80 per metric ton of carbon dioxide emitted needed to keep global warming within a 2-point degree, as declared by the Paris agreement.

The World Bank’s latest State and Trends of Carbon Pricing report reveals that carbon prices have risen sharply in the past year, and this is mostly due to increased demand as decarbonization efforts accelerate.

“For the first time, the total value of the voluntary carbon market exceeded more than US$1 billion in November 2021,” the report says. “This rapid increase in value reflects both rising prices and rising demand from corporate buyers leading to higher transacted volumes.”

According to the authors, global average carbon credit prices on the voluntary market moved from US$2.49/tCO2e in 2020 to US$3.82/tCO2e in 2021, and the volume of credits transacted in the voluntary market exceeded 362 million credits last year, 92% more than in 2020.

This growth in demand and upward price trend is attracting investors, who are starting to see carbon credits as an investment product that is set to bring.

So, if the price of CERs shoot up further the companies like Indowind Energy Ltd (Rs.18.10) will make windfall gains.

Q. Why was trading restricted in the scrip of Indowind Energy Ltd?

Ans: It is due to the delay in putting up the notice of a stay in NCLT hearing in the BSE/NSE website. According to my sources the date has been shifted to 23 January, 2023. 

Hence, the investors should not get rattled by the sudden move of the stock exchanges. Thi is just a normal process and there's absolutely NO PROBLEM in the fundamentals of the company.

Infact, post successful implementation of the Rights Issue, the company will almost certainly become DEBT FREE.

Q3FY23 Results:

Indowind Energy Ltd (Rs.18.10) came out with superb December, 2022 quarter Results, when the EPS jumped to ₹0.01 vs ₹0.024 loss in 3Q 2022.

Key Financials:

💥Revenue: ₹75.7m (up 80% from 3Q 2022).

💥Net income: ₹1.43m (up from ₹2.16m loss in 3Q 2022).

💥Profit margin: 1.9% (up from net loss in 3Q 2022). The move to profitability was driven by higher revenue.

💥EPS: ₹0.01 (up from ₹0.024 loss in 3Q 2022).

Source: Simply Wall.

Conclusion: The dates of the proposed Rights Issue has not been changed. Hence, those who want to subscribe to the Right Issue of Indowind Energy Ltd (Rs.18.10) should hold the shares upto the record date mentioned by the company on the BSE website.

Fortunately, the company is moving in the right direction and the prudent investors should do well to accumulate the scrip in market dips.

 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 

Yesterday, the S&P BSE Sensex, fell 304.18 points, or 0.50%, to 60,353.27, while the Nifty50 fell 50.80 points to 17,992.15 or 0.28%. Today also the Nifty is down 49.65 (0.28%). The indices are going for seasonal adjustments, post a massive Bull run --medium to long term investors need not worry.

Investors were concerned after the Dow Jones fell as the US Federal Reserve's December monetary policy meeting increased apprehensions, that the US central bank will continue to raise interest rates in the future.

Yesterday, the U.S. stocks sank after economic data showed private payrolls rose more than expected last month and weekly jobless claims fell to a three-month low, pointing to continued tightness in the labor market despite higher interest rates.

But the point is that we can't draw such staight forward conclusions, simply by looking at the US Jobs data while ignoring other economic matrices, like job cuts,  contraction in the US economy (Two consecutive quarters of negative growth mark a “technical recession.”), etc. Hence, it will be too much exaggerated to think that the US Fed will go on, with its interest hiking spree in the near future.

Meanwhile, though the Joe Biden administration has argued that the American economy is not in a recession, based on a still strong labor market, but the underlying structural shifts doesn't warrant further rate hikes, because such monetary measures do act with a time lag of 4-6 months. Thus my conclusion is that either the US Fed has done away with interest rate hikes or there could be just 100 bps left, for the final call.

Given this scenario and considering the current state of Indian economy, I would suggest you to slowly pick up stocks which has a story to tell. 

#Buy the shares of A2Z Infra Engineering Ltd (Rs.9.90) for short term targets of Rs.17/19. 

💥Major portion of Company's business, except the Municipal Solid Waste segment, depends on demand from sectors that are directly linked with the macro environment and broader economic sentiments. For e.g., the Engineering Services segment would see more demand if the Gross Capital Formation or capital investments improve in the economy.

💥The Company's performance in the FY2021-22 was a mixed bag. While the operating revenues declined on a YOY-basis by 14.8%, but continuous de-focus from the low Margin EPC business has given an improved revenue mix in favour of our profit-making businesses. 

💥The combined share of Facility Management Services and Municipal Solid Waste business increased from 55% in FY2020-21 to 61% in the financial year FY22. 

💥The Company was also successful in managing its direct raw material and employee costs in line with the revenue despite high inflation. During FY22, the Company's cost of financing was also reduced to less than half of the FY2020-21 level. 

💥 Interestingly, the company was able to enter into one time settlement with three banks during FY22 to reduce its outstanding debt. 

💥At the operating level, one the key development during the year 2022 was sale of its wholly owned subsidiary Chavan Rishi International Limited. 

💥The Company also won two major mandates in the Facility Management Services space with a term of 3-years each. 

💥In the Engineering Services and Power Genera on Projects business, the Company con nues to face challenges. 

Various Segments of Company's Business:

Power Transmission & Distribution:

A2Z Infra Engineering Ltd (Rs.9.90) is an experienced company in Engineering & Urban Infrastructure Services sector. 

As part of the services, the Company provides integrated design, testing, installation, construction and commissioning services on a turn-key basis to its clients. 

The Company’s projects include rural electrification, railway overhead electrification, reduction of AT&C losses, feeder renovation, underground cabling, feeder segregation, installing High Voltage Distribution System (“HVDS”) and Low Voltage Distribution System (“LVDS”) distribution lines and transmission lines. The Company has strong capabilities to build, operate and maintain:

• Substations & Switchyards up to 765 kV.

• Transmission lines up to 765 kV.

• 11 / 33 kV distribution lines comprising of Feeder Renovation Projects, Tube Well Connection, Segregation of Domestic and Agriculture load, Augmentation of Lines, Providing Laying of HT & LT Aerial Bunched Cables and Offering BPL Connections along with New connection & replacement of old meter works.

The Company has its overseas presence in Nepal, Uganda and Tanzania.

Under Engineering Services segment we may pursue infrastructure projects like Sewage Network & Treatment Plants, Gas Distribution Networks, and Metro projects in select cities.

It has projects ins various states of India including Jammu & Kashmir, Rajasthan, Orissa, Bihar, Arunachal Pradesh, Jharkhand, Kerala, Chhattisgarh, Haryana, Uttar Pradesh and Himachal Pradesh.

Telecom Infrastructure EPC

Telecom Infrastructure Projects is the main business activity of the Company. Major offerings by Company in Telecom Infrastructure EPC are supplying, laying and maintaining of Optical Fibre Cables (OFC) networks. EPC services offered by the Company under this segment include:

• Optical  Fiber  Cable  NLD  /  Access  Networking Construction & Maintenance.

• Network Integration.

• Telecom Infrastructure Operation & Maintenance Services.

• Material Planning & Project Management.

• Radio Frequency Engineering Services.

• Engineering Construction & Infrastructure Services.

The Company is successfully executing orders for construction of Telecom Network Backbone on Turnkey basis in the untapped toughest terrains of the country like Leh, Ladakh and North East India, which will help in building the optical Network to connect each and every part of the Nation.

Further, Company has tied up with Telesonic Network Ltd. (an Airtel group company) for work to be carried out on continuing basis at various circles including obtaining permission from applicable authority for HDD/Open Trench/ Moiling/First level restoration/Duct Pulling up to 4 number/ DIT/All Fiber Blowing & Pulling/Splicing/Manhole and Hand hole Supply and installation/ODF and OTB installation/AT Testing and sign off/Handover to O&M Team and such other work as may be specified/required from time to time.

Waste to Energy- Power Generation Projects (PGP)

The Company collaborated with sugar mills for setting up three power plants on Built, Own, Operate and Transfer (BOOT) basis for a period of 15 years in the state of Punjab and to ensure continuous supply of Refuse derived Fuel (RDF) to the said Power Plants, Company developed an indigenous waste processing plant for running the said Plants on Refuse Derived Fuel (RDF) from Municipal Solid Waste.

Non- supply of bagasse by the Co-operative Sugar Mills, various implied delays in approvals and execution of agreements including delay in handing over of land, and there are disputes between the concerned parties with ongoing arbitration proceedings, the execution of Project by the Company has become unviable despite its best bona fide and consistent efforts.

In the light of Section 12(5) read with schedule VII of the Arbitration and Conciliation (Amendment) Act, 2015 and various judicial pronouncements in this regard, the Addl. Registrar of the Co-operative Society, Punjab, appointed by the Co-operative Sugar Mills as the Sole Arbitrator was ineligible to be appointed as an arbitrator in the concerned arbitration proceedings as the dispute arising under the MoUs were to be referred to Arbitrator, who should have been the Registrar, Cooperative Societies, Punjab. The said award passed by Additional Registrar has been challenged by the Company under Section 34 of the Act before the Hon’ble District Judge, Chandigarh. Moreover, A2Z Infra had filed petitions under Section 11 and 14 of the Act before the Hon’ble High Court of Punjab & Haryana and Hon’ble District Court, Chandigarh, respectively, for appointment of an independent arbitrator and termination of mandate of the existing arbitrator, being illegal and arbitrary appointment, in the instant arbitration proceedings initiated by the Cooperative Sugar Mills and the said petitions are still pending before the respective Courts.

Due to these disputes with sugar mills in respect of cogeneration power plants, the sugar mills have terminated the agreement signed between the parties during the pendency of arbitration before the Additional Registrar; validity of termination is a matter of dispute to be dealt by the arbitrator while deciding the disputes between the parties. Henceforth, at present all the three power plants are non-operational.

Impact of COVID-19 pandemic

The COVID-19 pandemic has distressed the execution of the projects at various sites. Due to the onset of the COVID- 19 pandemic since March 2020, there is an inherent risk to health and safety of the employees and workers, and risk of disruption in production due to lockdown. Impact of COVID- 19 in the last two years, results in delay of significantly accelerate execution of the projects. It has resulted into the distressed Cash flows/Financials results for the Year ended March 31, 2022 as well.

But with the removal of nation wide lockdowns, the fundamentals of the company are expected to move up exponentially in the coming months.

Accumulate!!

 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.

 A2Z Infra Engineering Ltd: Buy

CMP: Rs.10

Introduction: 

The focus of the A2Z Group has been on Facility Management and Waste Management (Collecon & Transportation) and shall continue to be so. In the EPC vertical, it is focused on executing existing projects and pursued only the projects that present suitable financial terms. In the EPC business, its focus continues to be on the Telecom and Power Transmission & Distribution segments.

The company is presently having offices in Nepal, Uganda and Tanzania for global expansion of business. In near future to expand the business operations, the company might open offices in other countries as well.

More Coming.......Stay Tuned....🙏🙏

Piramal Pharma Solutions Ltd (Rs.16.65): Highly Undervalued?

In August last year, the National Company Law Tribunal approved the demerger of Piramal Enterprises' (PEL) pharma business and the simplification of the company's corporate structure. The order paved the way towards creation of two separate listed entities Piramal Enterprises Ltd (NBFC) and Piramal Pharma Ltd (PPL).

It is to be noted that the demerger plan of Piramal Enterprises was approved by the company’s board a year ago after PE biggie Carlyle Group invested about $540 million for a 20% equity stake in Piramal Pharma in 2020. 

Now, let do some simple arithmetic,

$540 million = Rs.4428 Cr.

This much amount was paid for 20% stake in Piramal Pharma Solutions Ltd (Rs.16.65) by PE biggie Carlyle Group in 2020.

Which means the approximate valuation of Piramal Pharma Ltd = Rs.22,140 Cr in 2020 or 3 - years back.

Ironically, this is against the current market cap of Rs.13,681 Cr.

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

However, as mentioned above this the valuation of Piramal Pharma Ltd (Rs.116.65), around 3 - years back.

Now add Inflation to that, which means the current valuation of Piramal Pharma Ltd should be around Rs.24,000 - 25,000 Cr.

This is against the market cap of ONLY Rs.13,681 Cr.

What did you observe? What is your opinion?

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

By the way, I feel Motilal Oswal Securities Ltd's valuation of Rs.210 for Piramal Pharma Ltd (Rs.116.65) was based on this price discovery mechanism.

What do you say?

Winning Strokes

The Indian stock indices tanked ferociously on the last two days of Trading on renewed fears of the rise in Covid-19 cases,C in China and elsewhere. On last Friday, the BSE Sensex closed at 59,845.29 down 980.93 points (-1.61%), while the Nifty ended the day  at17,806.80 down by a massive 320.55 points (-1.77%). However, the Covid-19 fears were too much exaggerated and the selling basically came from the panic stricken retail investors, since DIIs were net buyers to the tune of Rs.3398.98 Cr, while FIIs net sold Rs.706.84 Cr. This week we are expected to resume, 2nd phase of the much anticipated rally which fizzled out last week. The Indian media channels should be careful before showing events on sensitive issues. Their irresponsible behaviour in the last week caused immense pain to the retail investors.

However, the things are not that gloomy as was projected by the media channels last week. We're probably at the last phase of US rate hike cycle.

This month, the Federal Reserve approved a half-point interest rate increase, a lesser increase than in prior months and an acknowledgement that inflation is finally reducing. The increase represents a reversal for the US central bank, after an unprecedented year that included seven consecutive rate hikes as part of an aggressive push to try to cool down the inflation.

Policymakers also predicted that PCE inflation, the Fed's preferred price index, would remain above 2% until at least 2025. Further predictions showed that expectations for the health of the US economy were deteriorating, with Fed members now forecasting that unemployment will rise to 4.6% by the end of 2023 and remain there through 2024. This is 0.2 percentage point higher than the 4.4% rate predicted in September and much higher than the current 3.7% rate. points higher than the 4.4% rate they were expecting in September and significantly higher than the current 3.7% rate. This again shows that we're perhaps done away or near the last phase of the aggressive rate hikes by the US Fed.

#The Sensex is expected to gap up today by at least 300 points. I'm expecting a rise of 700+ points today, as the day progressed, after the Sensex nosedived due to an artificial selling coming primarily from the scared retail investors.

#Buy the Stock of Piramal Pharma Ltd (Rs.114.55), as the company is now also into Vaccination space. According to the media reports, Piramal Pharma Limited (PPL) made an investment or Rs.101.77 Cr in Yapan Bio Pvt Ltd ("Yapan") of Hyderabad, India, augmenting the capabilities of its Contract Development and Manufacturing Organization (CDMO) business, Piramal Pharma Solutions (PPS). PPL holds 27.78% equity stake in the company as a result of this investment. Yapan Bio provides process development, scale-up, and cGMP compliant manufacturing of vaccines and biologics/bio-therapeutics, including high containment product classes (up to BSL-2+), recombinant vaccines, RNA/DNA vaccines, gene therapies, monoclonal antibodies, therapeutic proteins, and other complex biologics. 

Arvind Sharma, Partner at Shardul Amarchand Mangaldas & Co who tracks the pharmaceutical sector says: “Several new products are lined up for approvals, and the pharma sector is securing benefits including on account of digitisation, use of AI and increased R&D. All of this, and recent changes in the global economic and political situation, should enable continuity of excellent performance in the Indian pharma sector, and we have a positive outlook for growth in the next year as well".

Piramal Pharma Ltd is currently a big public corporation in the pharmaceutical sector, following its demerger from the parent company, Piramal Enterprises. Piramal Group has rebuilt its pharma business after selling its domestic formulations business to Abbott in 2010 (which accounted for about 55% of FY10 sales of Rs.3,670 crore). The billion-dollar revenue mark is already within striking approach.

Interestingly, while the pharma and healthcare sectors have had mixed successes in the recent past, the industry appears to be on the right track in terms of development and growth.  Buy the share of Piramal Pharma, with a target price of Rs.210/221.

#D B Realty Ltd (Rs.87.30) is another firm to keep an eye on. On September 16, its wholly-owned subsidiary, Esteem Properties, agreed into a non-binding term sheet for the sale of its land adjacent to the ITC Grand Maratha Hotel in Andheri East for Rs.480 crore. The good news can come at anytime, since the deadline was three months from the date of declaration.

The firm's portfolio includes over 100 million square feet and 628 acres of prime property, mostly in Mumbai. In addition, the company has collaborated on several projects with Adani Goodhomes. It's also a takeover candidate of the Adani Group, owned by Gautam Adani, the Asia's Richest Man.

The real estate firm has a portfolio comprising over 100 million square feet and 628 acres of prime property, mostly in Mumbai. Also, the company has tied up with Adani Goodhomes on various projects.

Promoters, including Vinod Goenka family, Balwa family and a few others, have close to 69% stake in the Mumbai-based DB Realty.

Once the news of land sale comes, the stock will atleast double from the CMP.

#Buy the stock of Tata Steel Ltd (Rs.102.25), as the current NSA government is excepted to take more measures to boost the steel sector. 

In 2022, the centre took various measures to support the steel sector by removing the export duty on steel items and extending export benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to products of iron and steel for a specified period. These measures will help the domestic steel industry increase its share in the global market. But for a price target of Rs.131/135.

However, this government always works at a lag and has a pathetic economic policy. The choice of Niramala Sitaraman, instead of Dr.Subramanium Swami or Piyush Goyel, was also not correct. Though Niramala Sitaraman is a very hard working lady, but she still is a new comer in the FMO and that shows up in her speeches. But her appointment to the post of FH fits the bill for Narendra Modi who wants mediocrity in his ministry; so that the ministers don't become a challenge to his chair -- which he has clung so tightly since his occupancy of the Delhi chair. Narendra Modi is a misfit from the day he took over. It is time that he relinquished the chair of the PM before the public pulls him down in 2024. 

By the way, in October, India became a net importer from being a net exporter earlier -- this is what Narendra Modi government's policies are all about.

#The stocks like Zomato Ltd (Rs.53.65) and RTN Ltd (Rs.3.90) may show sharp rebound today, following of the recession of Covid-19 pandemic fear.  Both the companies are of high pedigree and only thing you need to do, to earn handsome returns over a period, is to hold on to the scrips.

#The stock of FCS Software Solutions Ltd (Rs.2.50) should be accumulated in market dips, after the company reported consolidated net profit of Rs.0.53 crore in Q2 FY23 as against net loss of Rs.0.02 crore in Q2 FY22. 

On a consolidated basis, net sales rose 12.58% to Rs.9.13 in Q2 FY23 over Q2 FY22. Revenue from India business stood at Rs.4.19 crore (up 9.11% YoY) and revenue from US business were at Rs.4.94 crore (up 15.69% YoY).

Profit before tax (PBT) stood at Rs.0.73 crore in Q2 FY23, higher than PBT of Rs.0.05 crore in Q2 FY22. This is a turnaround story.

#The stock of Wockhardt Ltd (Rs.223.40) and BPL Ltd (Rs.58.70) can also be accumulated in market dips, for targets of Rs.241/245 and Rs.71/76/84 respectively.

FCS Software Ltd: Buy

CMP: Rs.3.05

FCS Software Solutions Limited offers software development, marketing, and support services to corporate business entities in India and the United States. Photo: FCS Software.

FCS Software Solutions reported the following consolidated quarterly numbers for the third quarter of 2022:

In September 2022, net sales were Rs.9.13 crore, a 12.55% increase from Rs.8.11 crore in September 2021.

Quarterly net profit increased by 2807.18% to Rs. 0.53 crore in September 2022, compared to Rs.0.02 crore in September 2021.

In September 2022, EBITDA stands at Rs.2.01 crore, up 47.79% from Rs.1.36 crore in September 2021.

FCS Software Solutions had ₹218.1 million of debt at March 2022, down from ₹246.1 million a year prior. On the flip side, it has ₹43.8 million in cash leading to net debt of about ₹174.3 million or Rs.17.43 Cr only.

Buy the shares of this microcap software company near the CMP for targets of Rs.4.8/Rs.6.5/7/9.6. SL: Rs.2.60.

Brightcom Group Ltd: Buy

CMP: Rs.32.75

T: Rs.41/46

Key Highlights: September, 2022 quarter results:

💥Revenue: ₹16.8b (up 53% from 2Q 2022).

💥Net income: ₹3.21b (up 51% from 2Q 2022).

💥Profit margin: 19% (in line with 2Q 2022).

💥EPS: ₹1.59 (up from ₹1.22 in 2Q 2022).

Net profit of Brightcom Group rose 51.16% to Rs.320.68 crore in the quarter ended September 2022 as against Rs.212.15 crore during the previous quarter ended September 2021. Photo: Zee Business.

Sales rose 52.48% to Rs.1683.07 crore in the quarter ended September 2022 as against Rs.1103.78 crore during the previous quarter ended September 2021. 

Blocal exchange and Brightcom video player, the two new product technology introductions, early this year have started contributing significantly to the overall business growth. Photo: The Economic Times.

Ace investor Shankar Sharma, holds substantial stake in the company.

Company Profile:

Brightcom Group is a global provider of comprehensive online or digital marketing services to direct marketers, brand advertisers, and marketing agencies. The company is divided into three major divisions: (i) Media (Ad-Tech and digital marketing), (ii) Software services, and (iii) Future technologies. Its primary clients are end advertisers, agencies and publishers, but also include ad exchanges & networks. Digital marketing accounts for a significant portion of Brightcom Group’s revenue pie.

The company’s client list contains some of the biggest names like Airtel, British Airways, CocaCola, Hyundai Motors, ICICI Bank, ITC, ING, Lenovo, LIC, Maruti Suzuki, MTV, P&G, Qatar Airways, Samsung, Viacom, Sony, Star India, Vodafone, Titan, and Unilever.

Parsvnath Developers Ltd: Buy

CMP: Rs.7.35

Parsvnath Developers Ltd (Rs.7.35) is well - known name in the real estate sector for over 30 years. They have a reputation for converting desolate areas into lovely green belts with top-notch residential, business, and even recreational buildings.

With a pan-India presence in over 13 states and 37 cities, Parsvnath Developers Ltd is growing steadily, building dreamscapes - be it beautiful residential spaces, state-of-the-art commercial complexes, budget housing, luxurious shopping malls and hypermarkets, etc. 

Meanwhile, Parsvnath Realcon (PRPL), a wholly owned subsidiary of Parsvnath Developers, had started construction of its project Parsvnath Paramount situated at Subhash Nagar, New Delhi last year and it plans to complete the project within FY23.

Parsvnath Paramount consists of five towers including one separate Tower of EWS, having total 87 residential units in four towers and 45 units in EWS Tower.

The company now owns 100% stake in its subsidiary Parsvnath Estate Developers, which is developing this office building project.

Parsvnath had raised funds from a NBFC through lease rental discounting (LRD) to provide exits to few PE firms.

The company has a sizable land bank of size Rs.7,000 - 10,000 Cr. The proceeds from sale of land, Joint Development Agreements and joint ventures would be used to pay off debt, resulting in better credit rating.

The revenues (net sales) of the company is continuously increasing during the last few quarters.

They have their presence in Delhi, Haryana, Jammu & Kashmir, Uttar Pradesh, etc.

Real estate in India is the second largest employment producer, estimated to contribute to 13% of the country’s GDP, and the third largest sector in FDI flow. 

It is poised to exceed Rs.65000 crore by 2024 and 2025. The real estate market is constantly evolving with innovative solutions spanning residential, commercial, and retail projects in the main metros and across the country, even in tier 2 cities. 

Buy the shares of Parsvnath Developers Ltd near the CMP of Rs.7.35, for targets of Rs.11/12. SL: Rs.6.60.

Patel Engineering Ltd: 2nd Quarter 2023 Results

Net profit of Patel Engineering rose, a massive 282.31% to Rs.26.15 crore in the quarter ended September 2022 as against Rs.6.84 crore during the previous quarter ended September 2021. 

Sales rose 23.27% to Rs.893.05 crore in the quarter ended September 2022 as against Rs 724.45 crore during the previous quarter ended September 2021.

Patel Engineering, is a Premier Bombay based civil construction Company, specialising in the hydropower sector.

Key Financial Highlights:

💥Revenue: ₹9.23 billion (up 27% from Q2FY22).

💥Net income: ₹261.5 million (up 282% from Q2FY22).

💥Profit margin: 2.8% (up from 0.9% in Q2FY222). The increase in margin was driven by higher revenue.

💥EPS: ₹0.53 (up from ₹0.15 in 2FY22).

In September, 2022, there was an announcement that Patel Engineering Ltd (Rs.19.10) has allotted 1,25,52,800 equity shares at issue price of Rs.25.36 each for cash at par aggregating to Rs.31.83 Cr Afrin DIA - Category I registered FPI. 

This rate somewhat gives the benchmark price of the shares. Therefore buy the shares of Patel Engineering Ltd near the CMP of Rs.19.10, for targets of Rs.24/27/31. SL: Rs.17. Photo: Equity Bulls.

 Market Mantra

Indian bourses are trading in the Green today, taking cues from the global markets. Also, on last Friday FIIs were net buyers of equities worth Rs.369.08 crores. This gave a great sentimental boost to the bulls. Photo: The Economic Times.

Meanwhile, in China protests are being held to lift lockdown. In India, the chances of fresh lockdown due to Covid-19, is almost nil. Hence, I'm expecting a broad based rally in the domestic stock markets.

Now, while the domestic indices are likely to consolidate at the current levels, the action will be seen in the broader market. In view of this, I have today recommended some momentum counters, as mentioned below:

💥Buy Websol Energy Systems Ltd (Rs.94.65) near the CMP for short term target of Rs.117.

Websol Energy System is a Kolkata-based manufacturer of solar cells and modules. Last year the company commissioned its dormant 250 MW module manufacturing line. The company is restructuring its existing 250 MW solar cell capacity towards higher cell sizes and looking to commission additional solar cell capacity.

💥Buy Visa Steel Ltd (Rs.16.20) for short term target of Rs.21.

💥AU Small Finance Ltd (Rs.642) has broken a major resistance on the upside. Next target: Rs.717.

💥Unless Coffee Day Enterprises Ltd (Rs.51.40) gives a closing above Rs.52, kindly don't take fresh position.

💥Those who are having cash in your account kindly try to average the shares of RTN Power Ltd (Rs.4.25) to bring down your acquisition Price.

💥Buy Vakranjee Ltd at Rs.30.55, T: Rs.37/39, SL:  Rs.27.

💥Buy Aban Offshore Ltd at Rs.49, T: Rs.72, SL: Rs.47. When the crude is trading near $100 per barrel, it is obvious that the stocks of oil exploration companies will do well in the present situation.

💥 Continue to accumulate the shares of late Rakesh Jhunjhunwala favourite, D B Realty Ltd (Rs.98.25), as it is likely to be taken over by a big business house, as per market speculation.

The company came out with excellent set of numbers for the September, 2022 quarter.

The net profit of D B Realty came at a whopping Rs.568.67 crore in the quarter ended September 2022 as against net loss of Rs.352.50 crore during the previous quarter ended September 2021. Sales rose 15.45% to Rs.10.16 crore in the quarter ended September 2022 as against Rs 8.80 crore during the previous quarter ended September 2021.

💥Those who are holding the shares of Dilip Buildcon Ltd (Rs.233.85) can continue to do the same, adding on market declines.

💥The stock of Nahar Spinning Mills Ltd (Rs.284.50) is doing well today. With the cotton prices falling across-the-board, and the government of India coming up with 2nd PLI scheme, the textile stocks should be doing well in future 

Market  Mantra

The Indian bourses are trading flat in absence of any major news or event. However, the softening of stance of the US Fed, has again brought the bulls into the ring. 

The BSE Sensex was trading at 62,225.03 up 30.76 points (-0.08%), while the Nifty was seen trading at 18,476.70 up 1.50 points (+0.01%). The Sensex and Nifty are expected to trade range bound while the action is likely to be seen in the small and mid cap counters. Buy good small and mid cap stocks and keep holding.

#Today the shares of Coffee Day Enterprises Ltd (Rs.52.75) made an intraday high of Rs.54. The short term traders are suggested to book some profits and hold the rest with a SL of Rs.51.70.

#Buy the shares of D B Realty Ltd near the CMP of Rs.97/98, for short term targets of Rs.127/131. SL:  Rs.94.

Earlier there were media reports that its wholly-owned subsidiary, Esteem Properties, had entered into a non-binding term sheet on September 16 for the sale of its land, adjoining to ITC Grand Maratha Hotel, Andheri East, Mumbai at a consideration of Rs 480 crore.

In a significant development, Adani Realty, the luxury residential and commercial property arm of the leading multinational conglomerate Adani Group, is in advanced talks for a merger with Mumbai-based DB Realty, according to a report by business daily The Hindu BusinessLine.

The merger could be one of India’s largest real-estate deals and is likely to pave way for Adani Realty's listing on the bourses. DB Realty is a listed company and after the merger it would be renamed as Adani Realty, as per the report.

Moreover, true or false -- the name of Sharad Pawar, has always been associated with this company.

#Yesterday, a buy call was initiated in the shares of A U Small Finance Bank Ltd (Rs.232) around Rs.634, for short term target of Rs.717. The stock is trading flat today, after making an intraday high of Rs.637.90. Buy and keep holding. The stock will cross Rs.1000, over a period of time 

The biggest boost to the bottom line has come from a massive improvement in the asset quality with gross steeply falling to 1.96% year-on-year from 4.31% and the net NPA plunging to 0.56% of net advances from 2.26 % in the pandemic hit June 2021, its managing director & chief executive Sanjay Agarwal said.

#Accumulate the shares of Aban Offshore Ltd (Rs.48.75), e for targets of Rs.71/85 especially when the crude oil is trading near $100 per barrel.

#Accumulate the shares of Indowind Energy Ltd (Rs.13.95) in all market declines. Its Q2FY23 results were excellent. This is a sure shot recommendation. 

 Market Mantra

The Indian markets are down following global cues: US Fed's Hawkish stance on interest rate, Russia Ukraine War and fresh cases of coronavirus in China. 

The BSE Sensex is now trading at 61,095.16 down 568.32 points (-0.92%) while the Nifty was last seen at 18,141.85 down 165.80 points (-0.91%). The main indices comprising of mostly large caps, may correct 16,000 as mentioned by Sushil Kedia, the other day, but that has nothing much to eo with the movement of small and mid cap counters, albeit some rub off effect though.

The traders should understand that small and mid cap is one basket, while large cap is another basket. Therefore, though linking the two is erroneous but it often happens in the real life. Photo: Angel One.

The small and mid cap rally is about to begin and hence you need to keep your guns ready for the final shooting.

Buy the shares of the companies obtained from distress selling from the traders tormented by margin pressures from brokerage houses. You need to buy and keep holding. Is the work too difficult?

#Today my recommended Swan Energy Ltd made a high of Rs.261. Its 2nd targets has also been achieved.

#Today the shares of Dilip Buildcon Ltd (Rs.122) made an intraday high of Rs.230.70. The company came out with good quarterly numbers. Going forward the margins are likely to improve due to lesser number of Legacy orders. Accumulate.

#Coffee Day Enterprises Ltd (Rs.47.85) will make windfall gains on the coffee beans sold, as the price was fixed when the coffee prices were touching new highs, in the international markets. Accumulate!!

#Most of my recommended counters came up with good September, 2022 quarter results, but surprisingly Zee Business only finds Banks (UCO Bank and Central Bank -- both doing well) in the list. As a result the money is flowing into banking counters only, instead of uniformly traveling into various outperforming sectors.

This market looks to be fully manipulated -- operators move a stock and TV Channels recommend them (because they look good on chart...😂😂) to the gullible investors. This either elevates a stock or makes it fall. Very sly operator game is going on in the Indian bourses.

 Coffee Day Enterprises Ltd: Result Update

Coffee Day Enterprises Ltd (Rs.48.80) came out with excellent set of numbers for the September, 2022 quarter.

The net profit of the company came as Rs 5.67 crore in the quarter ended September 2022 as against net loss of Rs.84.85 crore during the previous quarter ended September 2021. 

The Sales rose 56.15% to Rs.229.16 crore in the quarter ended September 2022 as against Rs.146.76 crore during the previous quarter ended September 2021. The quarterly results are set to improve further as the Nationwide Lockdown were lifted across India. Photo: AndhraFriends.com.

Initial Public Offering: Coffee Day Enterprises Ltd came up with an IPO at a price band of Rs.316 to Rs.328 per share in October, 2015.

The CMP of the shares of the company is at a considerable discount to the IPO price. 

Business: Coffee Day' (CCD). Company owns a network of 550 - plus Cafe outlets spread across in India.

In addition to having one of the largest chain of cafes in India, company operate a highly optimized and vertically integrated coffee business which ranges from procuring, processing and roasting of coffee beans to retailing of coffee products across various formats. 

The Company is one of the largest exporters of Indian coffee beans, primarily to Europe, Japan and the Middle East.

According to Wikipedia: Café Coffee Day Global Limited Company is a Chikkamagaluru-based business which grows coffee in its own estates of 20,000 acres. This should be valued around Rs.2000 crores.

It is the largest producer of arabica beans in Asia, exporting to various countries including U.S., Europe, and Japan.

Now calculate the value of this property against the CMP of the shares of the company.

Tata Coffee currently has about 8,000 hectares of coffee plantation, most of it located in Toopran (Telangana) and Theni (Tamil Nadu).

Debt Reduction: The debt levels have reduced significantly from Rs.7,214 crore as on March 31, 2019 to Rs.1,898 crore as at the end of March 31, 2021 and to Rs.1,810 crore as at the end on March 31, 2022.

Meanwhile, Tata Consumer Products had withdrawn a proposal to purchase the vending machine business from Coffee Day Enterprises, about two years after the firm had started talks and begun evaluating a potential acquisition.

According to the market grapevine, the deal got cancelled because the management of Coffee Day Enterprises Ltd was demanding higher price than the previous one. 

Tata Consumer Products Ltd, which owns the Tetley Tea and Tata Salt brands, had earlier proposed to buy the coffee vending business from CGDL for at least Rs.1,000 crore.

This happened because of the turnaround of the company during the last one year.

Accumulate the shares of Coffee Day Enterprises Ltd (CCDL) near the CMP of Rs.48.80 for short term targets of Rs.57/61/72/85.

 Tata Teleservices Ltd: Result Update

In September, 2022 quarter on Q - o - Q basis:

Revenue: ₹2.79b (up 2.8% from 2Q 2022).

Net loss: ₹2.93b (loss narrowed by 6.7% from 2Q 2022).

₹1.50 loss per share (improved from ₹1.60 loss in 2Q 2022).

Financial Results (Half Year Ended FY2023) - Y - o - Y Comparison:

The company has reported total income of Rs.548.12 crores during the 6 Months period ended September 30, 2022 as compared to Rs.541.51 crores during the 6 Months period ended September 30, 2021.

The company has posted net profit / (loss) of Rs.-587.86 crores for the 6 Months period ended September 30, 2022 as against net profit / (loss) of Rs.-632.08 crores for the 6 Months period ended September 30, 2021.

Advantages: Continuous liquidity support from parents, a focus on the SME segment, media reports of potential collaboration with other Tata Group companies, and transformation into a SaaS+connectivity solution provider are just a few of the positives that could be working in Tata Teleservices Ltd's favour. 

Given the rising digital adoption trend, the market opportunity in the SME space is vast. In addition, the company stated in its annual report that it is looking into restructuring options.

Tata Teleservices has seen its revenues rise owing to the adoption of cloud-based solutions by companies. It is now exploring growth in the 5G domain, the report said.

As the world moves towards a digital industry, the company provides solutions that are essential in improving efficiency. For example, it helps companies move to the cloud and secure their networks. It also offers voice solutions to companies of all sizes. 

Besides, there's a speculation in the market that the company could turn out to be a winner replicating the success and business model of Tata Elxsi or Tata Communication, other multibaggers from Tata Group stable.

Moreover, giving a stake to the government by converting debt is always a better option for both the government and the companies.

Accumulate, the shares of Tata Teleservices Ltd (Rs.97.60) for long term perspective, with target prices of Rs.141 - Rs.191. 

Company Profile: A Tata Group company, Tata Teleservices (Maharashtra) Limited (TTML) is a leading player in the connectivity and communication solutions market serving enterprise customers. It offers services ranging from connectivity, collaboration, cloud, security, IoT to marketing solutions as comprehensive portfolio of ICT services for businesses in India under the brand name Tata Tele Business Services (TTBS). 

TTBS provides integrated telecom solutions to enterprises that go beyond the purview of connectivity into offering one-stop-shop business solutions and managed services.  

Market Mantra

The Indian bourses as expected are on consolidated phase. The BSE Sensex is now trading at 61,750.47 down 41.55 points (-0.07%), while the Nifty was last  seen at 18,360.85 up 11.15 points (+0.06%). While the indices are likely to trade in a range, the action will be focused on small and micro cap counters due to the commencement of the #November #Effect.

#Buy BIOCON LTD at Rs.283, Short Term 🎯: Rs.294/Rs.297,  SL: 277.90. fundamentals of the company are looking decent. 

#Keep accumulating the shares of Nitin Spinners Ltd (Rs.196) and Nahar Spinning Mills Ltd (Rs.179). The new bales of cotton are set to arrive post 15 November, 2022. The cotton prices are falling across-the-board. 

#Today the the shares of the blue chip construction company, Dilip Buildcon Ltd (Rs.335) are doing fine. The company is all set to turn around from this (Q3FY23) quarter. I'm looking for a price above Rs.500, in the next 6 - 9 months time frame.

#Buy BPL Ltd near the CMP of Rs.67.40, T: Rs.71/76, SL: Rs.65. 

The ongoing festival season is likely to lift the fundamentals of this consumer dirable company.

Indowind Energy: Buy

CMP: Rs.15.35

Book Value: Rs.25.75

Introduction: Indowind Energy Ltd develops and sells wind farms, manages wind assets, and generates Green Power for utilities and corporations. 

Its work consists of Wind Power Project Implementation from Concept to Commissioning, Wind Asset Management Software for installed assets, including operations, billing, and revenue collection from project customers. Customers are supplied with Green Power CER (Carbon Credit) Trading and Sales.

Financials: The consolidated net profit of Indowind Energy, surged 656.86% to Rs.3.86 crore on 64.60% increase in net sales to Rs.14.60 crore in Q2 September 2022 over Q2 September 2021.

On a consolidated basis, profit before tax surged 587.7% year-on-year to Rs 3.92 crore in Q2 September 2022. Total expense climbed 32.4% YoY to Rs 10.35 crore in Q2 FY23.

The net profit surged 138.27% and net sales soared 88.63% in Q2 FY23 over Q1 FY23.

The company's net cash from operating activities stood at Rs 9.22 crore in the half year ended September 2022, higher than Rs 2.41 crore in the same period last year.

EBITDA stood at Rs. 8.35 crore in September 2022 up 56.95% from Rs. 5.32 crore in September 2021.

Indowind Energy Ltd's EPS has increased to Rs.0.42 in September 2022 from Rs.0.05 in September 2021.

Conclusion:  Buy the share of Indowind Energy Ltd for short term targets of Rs.31/32.

 Winning Strokes

The Indian bourses were on roll last Friday, after an Economic Times report indicated that the NDA government is examining possible changes to the capital gains tax regime to make it simpler, including rationalisation of the multiple holding periods.

The BSE Sensex closed at 61,795.04 up a massive 1,181.34 points (+1.95%) while the Nifty50 ended the day at 18,349.70 up by a whopping 321.50 points (+1.78%). 

In a significant positive development, foreign investors (FIIs/FPIs) have invested nearly Rs.19,000 crore in Indian equities so far this month, owing primarily to a slowing trend in US inflation and a weakening dollar.

On Monday, the markets are likely to consolidate around the current ranges. The future direction of the market will come from global cues and also from the current earning session.

However, since November Effect has kicked in, the investors should do well to buy momentum counters from the small, mid and micro cap space. I am bullish on Oil & Gas, Construction, Textile, Renewable Energy and Restaurant sectors.

#Coffee Day Enterprises Ltd (Rs.52.75) came up with good September quarter results. 

Net profit of Coffee Day Enterprises Ltd came at Rs.5.67 crore in the quarter ended September 2022 as against net loss of Rs.84.85 crore during 66 move towards my targets of Rs.84/91. The restaurant sector has been doing well since lifting of Nation Wide Lockdown. Accumulate in dips.

#Aban Offshore Ltd (Rs.49.60), India's largest oil exploration company in the Private Sector, came up with good September quarter numbers. 

Quarterly Net Loss of Aban Offshore Ltd came at Rs. 207.53 crore in September 2022 down 16.34% from Rs. 248.07 crore in September 2021.

This means the cost overrun or margin shrinkage through legacy orders has substantially come down in Q3FY23.

However, Net Sales were at Rs.94.88 crore in September 2022 down 32.37% from Rs.140.28 crore in September 2021.

The buoyancy in the crude oil prices and lowering of the number of low value legacy orders will take the scrip to Rs.71/72. Remain Invested.

#I have recommended the share of the Tata Group Company, Tata Teleservices Ltd (Rs.100.30) on last Friday at around the CMP for long term targets of above Rs.250.

According to a Business Standard report, the Tata Group Company, Tata Teleservices Ltd (Rs.100.30), is restructuring its telecom business, which is spread across various companies, by making additional investments in Tata Teleservices and exploring opportunities in 5G-based segments by providing back-end services.

It is pertinent to mention here thar in June, 2022, the NDA government at the centre allowed enterprises to set up captive non - public networks to buy 5G spectrum directly from the DoT, in order to establish their isolated networks.

Meanwhile, while Tata Teleservices continues to focus on enterprise businesses, the group has brought in Tata Communications to provide 5G-based services such as automated equipment quality inspection, inventory management, and asset tracking. Although the group sees 5G as a significant opportunity, it has refrained from purchasing the more expensive 5G spectrum. However, to stay in the game, it will most likely focus, on value-added services.

#Dilip Buildcon Ltd's (Rs.224.45) debt is nothing as compared to Tata Steel. At the end of the June quarter Tata Steel had a gross debt of ₹82,597 crore and net debt of ₹54,504 crore. As of March, 2022, the total debt of Dilip Buildcon (Rs.224) was Rs.8,783 Cr. While Reserves & Surplus was at Rs.4189.92 Cr.

The company has an order book of Rs.25,000 - plus crores. It is a blue chip company from the construction space and is rumoured to have some connections (invisible hand) with the current Madhya Pradesh government.

The HDFC Securities has already provided a target of Rs.369 for the scrip. However, I feel it will slowly move towards Rs.500 - plus, as the cost overruns or margin shrinkage from legacy projects comes down from this quarter. Accumulate!!

#Accumulate the shares of Orient Green Power Company Ltd (Rs.8.60) and RTN Power Ltd (Rs.4.20) because of the commencement of November Effect.