Market Mantra

Photo: Meriduniya.net

Key benchmarks came off day's low and were trading with minor losses in morning trade. At 11.29 IST, the barometer index, the S&P BSE Sensex, was trading at 37,872.36 up 20.36 points (+0.05%) while NSE  was seen at  11,442.20 up 7.10 points (+0.06%) Trading sentiment was fragile due to negative Asian stocks.

Broader market bounced back. Among secondary barometers, the BSE Mid-Cap index was up 0.05%. The BSE Small-Cap index was up 0.32%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1116 shares rose and 973 shares fell. A total of 106 shares were unchanged.

Drug major Sun Pharmaceutical Industries was up 2.22% after the company announced securing US Food and Drug Administration (FDA) approval for CEQUA. The announcement was made before market hours today, 16 August 2018. CEQUA (cyclosporine ophthalmic solution) 0.09% is indicated to increase tear production in patients with keratoconjunctivitis sicca (dry eye).

Overseas, Asian stocks declined, tracking overnight fall in the US market. Japan logged a bigger-than-expected trade deficit in July as the cost of energy imports surged, government data showed Thursday. The trade deficit came to 231.2 billion yen ($2.1 billion) following a revised 720.8 billion yen surplus in June, according to a preliminary report by the Finance Ministry. Exports grew 3.9% from a year earlier to 6.75 trillion yen amid an increase in demand for electronic components from the rest of Asia, but were overshadowed by a 14.6% rise in imports to 6.98 trillion yen.

Mandhana Industries Ltd (Rs.4.65) hit the upper circuits in the morning trade at Rs.4.95. The company is having a couple of bidders ready for the resolution of its debt. Recently, there were media reports that Bollywood superstar Salman Khan's Being Human Clothing operating as the retail division of The Mandhana Industries has forayed in Tamil Nadu market by setting up of its first company outlet store in Chennai. The Being Human Clothing store is spread across 1,322 square foot in the newly opened outlet Palladium Mall at Velacherry. 
The company has trimmed down its losses to Rs 4.61 crore in the quarter ended June 2018 as against a net loss of Rs 76.33 crore during the previous quarter ended June 2017. Sales however declined by 22.57% to Rs 66.93 crore in the quarter ended June 2018 as against Rs 86.44 crore during the previous quarter ended June 2017. You can buy for a target of around Rs.9.7, in the short term. Also, the depreciation of INR is positive for the textile sector.

The shares of TV Vision Ltd (Rs.5.85) hit another lower circuit today, after profit booking was suggested to the Premium Members, a couple of days back. Similarly, the scrip of Sri Adhikari Brothers Television Network Ltd (Rs.7.40) also hit the lower circuits. The supports for both these scrips were mentioned to the Premium Members a couple of days back. Also, the reasons for their sudden upmove was also told to the Premium Members. If you want to know, then you need to join the Premium Service. 

Now, HIGHLY DISCOUNTED Life Time (30 years) Subscription Offer at the rate of only Rs.2000 per year for Non-F&O segment and Rs.3333 per year for F&O space is going on; for my information service. The cumulative amount for the said period has to be paid in one shot. There is NO INSTALLMENT facility. 

The scrip of Den Networks Ltd today is trading at Rs.57.52, after making a high of Rs.58.2. You can start accumulating the scrip for a short term target of Rs.71, keeping a SL at Rs.52. This scrip is likely to give good returns going forward, as it is likely to be a takeover candidate. 

The stock of J P Associates Ltd (Rs.13) is languishing at the current ranges.  Though, the big bull Rakesh Jhunjhunwala has increased his holding in the company, I would suggest you to stay away from this counter till more clarity emerges, regarding its bid for J P Infratech. I have recommended this stock a number of times earlier in this blog, and in most of the cases the traders have money in the scrip. 

The share of Reliance Communications Ltd today made an intraday high of Rs.21.35 and is now trading at Rs.20.80. Those who are holding the scrip since Rs.13 levels are suggested to book profits and wait for the stock to close above Rs.23, to take a fresh entry. 

The stock of Kwality Ltd hit another buyer freeze at Rs.22.15. However, I would suggest you to book some profits and hold the rest with a SL at Rs.21. The scrip was recommended to the Premium Members at around Rs.12.50. 

The share of Reliance Naval and Engineering Ltd has hit the lower circuits at Rs.17.15. The traders are suggested to exit the counter, in any intraday rise. I had recommended the scrip at around Rs.13, a couple of months back in this blog. The stock make a recent high of around Rs.20 giving good returns to the short term players. 

~~ with inputs from Capital Market Live News.....

Pre-Session: Shares may slide at opening bell

16-Aug-18: Market is seen opening lower, tracking mixed leads from Asian market and overnight decline on the Wall Street. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 24 points at the opening bell.

Overseas, most Asian stocks declined, tracking overnight fall in the US market. Japan logged a bigger-than-expected trade deficit in July as the cost of energy imports surged, government data showed Thursday. The trade deficit came to 231.2 billion yen ($2.1 billion) following a revised 720.8 billion yen surplus in June, according to a preliminary report by the Finance Ministry. Exports grew 3.9% from a year earlier to 6.75 trillion yen amid an increase in demand for electronic components from the rest of Asia, but were overshadowed by a 14.6% rise in imports to 6.98 trillion yen.

In US, stocks came off intraday lows but still closed lower Wednesday as worries surrounding Turkey's currency crisis and continued trade tensions weighed on investors' confidence. A sharp fall in oil prices sent the energy sector skidding, making it the worst S&P 500 performer.

On the US data front, retail sales rose 0.5% in July. Excluding auto sales, they were up 0.6%. Separately, second-quarter productivity rose 2.9%, the highest rate in more than three years. Output in the second quarter was up 4.8%. The Empire State manufacturing index rose 3 points to 25.6 in August, the New York Fed said Wednesday, topping expectations for a reading of 20.

Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 378.84 crore on Tuesday, 14 August 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 391.47 crore on Tuesday, 14 August 2018, as per provisional data.

Key benchmark indices logged modest gains on Tuesday, 14 August 2018, snapping two-day losses, after retail inflation slowed to a nine-month low. The barometer index, the S&P BSE Sensex, rose 207.10 points or 0.55% to settle at 37,852. The Nifty 50 index rose 79.35 points or 0.70% to settle at 11,435.10. The Indian stock market was shut on Wednesday, 15 August 2018, on account of Independence Day.

~~Powered by Capital Market - Live News.....

Winning Strokes: Think Different

Photo: Indian Textile Journal

Key benchmark indices logged modest gains in a steady session of trade, snapping two-day losses, after retail inflation slowed to a nine-month low. The barometer index, the S&P BSE Sensex, rose 207.10 points or 0.55% to settle at 37,852. The Nifty 50 index rose 79.35 points or 0.70% to settle at 11,435.10. After seeing gap-up opening, indices firmed up as the session progressed.

The Indian stock market will remain shut tomorrow, 15 August 2018, on account of Independence Day.

Among secondary barometers, the BSE Mid-Cap index rose 0.89%, outperforming the Sensex. The BSE Small-Cap index rose 0.53%, underperforming the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1317 shares rose and 1367 shares fell. A total of 149 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 2.48%), the S&P BSE Realty index (up 1.84%), the S&P BSE Bankex (up 0.96%) outperformed the Sensex. The S&P BSE Capital Goods index (down 0.51%), the S&P BSE Power index (down 0.14%), the S&P BSE Metal index (up 0.23%), underperformed the Sensex.

Tata Steel rose 1.7%. On a consolidated basis, Tata Steel reported 109.98% rise in profit after tax to Rs 1934 crore on 22.14% rise in turnover to Rs 37833 crore in Q1 June 2018 over Q1 June 2017. The Q1 June 2018 resul was announced after market hours yesterday, 13 August 2018.

Tata Steel India operations' EBITDA jumped by 75.2% to Rs 5118 crore in Q1 June 2018 over Q1 June 2017 on account of better realisations and improved operational efficiencies. EBITDA margin for the quarter was 31.2%.

Tata Steel European operations' EBITDA improved significantly by 42% QoQ to £183 million on account of higher selling price and better operational performance. Tata Steel South-East Asian operations' EBITDA increased by 15.3% QoQ to Rs 110 crore in Q1 June 2018 due to improved realisations and deliveries at NatSteel, partially offset by increase in input metallic cost.

T V Narendran, CEO & Managing Director said that Tata Steel delivered strong performance across all geographies on the back of strong steel demand and buoyant spreads. All verticals saw strong growth, with automotive and branded products segments now contributing to 19% and 33% of total volumes, respectively. Tata Steel Europe also saw stronger profitability with an improvement in spreads and operational performance.

On the macro front, the annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 5.09% (provisional) for the month of July 2018 (over July 2017) as compared to 5.77% (provisional) for the previous month and 1.88% during the corresponding month of the previous year. The Ministry of Commerce & Industry unveiled the data during trading hours today, 14 August 2018.

The all-India general Consumer Price Index (CPI) inflation dipped to nine-month low of 4.17% in July 2018 (new base 2012=100), compared with 4.92% in June 2018. The CPI inflation figure for June 2018 is revised downwards to 4.9% from 5.0% reported earlier. The corresponding provisional inflation rate for rural area was 4.11% and urban area 4.32% in July 2018 as against 4.93% and 4.85% in June 2018. The data was announced after market hours yesterday, 13 August 2018.

Overseas, most European stocks nudged higher on the strength of banking and basic resource sector stocks as investors appeared more sanguine over the nature of their exposure to the Turkish economy. A stronger-than-expected reading of 0.5% for second quarter GDP in Germany, the region's biggest economy, along with an upwardly revised reading of 0.4% for the first three months of the year from the Federal Statistics Office, boosted sentiment.

Asian shares were mixed as tremors from the collapse of the Turkish lira ebbed a little. Business activities in China cooled further in July, with investment slowing to a near two-decade low, official data showed. Fixed-asset investment in China's non-rural areas climbe. d 5.5% in the January-July period from a year earlier, the National Bureau of Statistics said Tuesday.

Retail sales in China climbed 8.8% in July from a year earlier, slowing from a 9.0% on-year increase in June. Retail sales increased 0.67% in July from June. In June, retail sales rose a revised 0.74% from the previous month. Value-added industrial output in China rose 6.0% in July from a year earlier, unchanged from the 6.0% increase in June. Industrial production rose 0.48% in July from June. In June, it rose 0.36% from May.

US stocks settled with small losses Monday, with the S&P 500 and the Dow Jones Industrial Average down for a fourth straight session as the ongoing turmoil in Turkey dampened investors' appetite for riskier assets.

#The share of Kwality Ltd hit another buyer freeze at Rs.21.10, after touching an intraday low of Rs.20.50 in the NSE. The stock has nearly doubled from the recommended price of around Rs.12.5. The traders are suggested to book some profits in the scrip and wait for it to cross the immediate resistances with good volumes. 

#I have recommended a textile stock which is likely to give good returns in the short term, due to some positive developments. The scrip today closed at Rs.4.75. The company is into the process of insolvency resolution, through National Company Law Tribunal. Earlier, the Mumbai bench of the NCLT has allowed the resolution professional (RP) of this listed textile player to exclude the time between the admission of insolvency petition from the date of uploading an order, which means now the 270 days deadline for the resolution expired on 8 July 2018. This will pave the way for lenders to evaluate the bids to acquire the company. It is pertinent to mention here that the company has received the highest bid from one bidder and the second highest bidder has increased its bid, which the committee of creditors (CoC) wants to consider. At the time of admission of the insolvency petition, the company owed Rs.1,062 crore to the consortium of lenders. The interested bidders to acquire the company needs to have minimum net-worth of Rs.150 crore and a consolidated group turnover of Rs.400 crore in textile manufacturing or trading business. The shortlisted candidate also requires demonstrating the ability to invest minimum equity of Rs.100 crore.

#The stock of HDIL today moved to Rs.26.3 before closing at Rs.25.95. I had asked everyone to accumulate/average the scrip at around Rs.18, when it was trading near its all time low. 

#The stock of Den Networks Ltd, today made a low of Rs.53.8 before closing at Rs.58.55, after touching an intraday high of Rs.59.85. To know what to do with the scrip join the Life Time Premium Membership at a very low price at around Rs.2000 per year (the money for the stated period needs to be paid in one shot) for the scrip without F&O. For inclusion of the F&O, which is altogether a different field, the price of the package will be a little bit higher. 

~~with inputs from Capital Market - Live News...

Winning Strokes: Think Different

Photo: Who is the Owner of

The two of my recommended Adhikari Brothers Group stocks, TV Vision Ltd and Sri Adhikar Brothers Television Network Ltd hit their respective buyer freezes today also at Rs.6.15 and Rs.7.80. I hope you remember, the targets of both the scrip, mentioned earlier by me in this blog. Keep accumulating on intraday declines (if any). 

The scrip of SKM Egg Products Exports (I) Ltd (Rs.76.65) is not going anywhere during the last few days. The long and short term investors should do well to exit the counter if it breaks Rs.75, on closing basis. Unless, it closed above the range of Rs.82-85, the next level of upmove is not possible. The scrip came down, from the upper ends of the Bollinger Bands and is not looking encouraging in the short term charts. However, very long term investors can hold with a SL at Rs.67.

The stock of Reliance Naval and Engineering Ltd was recommended in this blog at around Rs.11-12 last month. The scrip today hit the Upper Circuit at Rs.18.15 and achieved its 1st target. Keep accumulating the scrip for the 2nd target of Rs.21 and 3rd target of Rs.27. 

Today, I have recommended the scrip of Den Networks Ltd (Rs.47.90), which is one of the largest MSO's in India. Now many of my ardent blog readers might be surprised looking at the Q1FY19 results, which is not that encouraging and the company's future looks a little challenging in view of Mukhesh Ambani coming up with JioGigaFibre. 

Here are the possible triggers for the scrip: 

#Driven by strong broadband demand across its cable presence markets, the company was able to successfully roll out fixed line broadband services in 28 cities by end of Q1 FY 19 as part of the 100 cities plan.

#Though its June, '18 quarter results were not that satisfactory, I feel the stock has already reacted to that and has come down. I feel it has completed its time correction and is ready for upmove.

#It has no pledged shares and institutional holding is a whooping 46.26% giving a premium to the stock price. 

#Den Networks Ltd has a beta of 1.41 with Sensex, hence it has high chance of moving ahead especially when the main indices are cruising on well. 

#Cable subscription rates have been increasing consistently year on year, further increases have been announced in July' 18 to offset the impact of increased content costs. Also, the notification of TRAI order is expected to be a "game changer for the industry".

#In last September, '17, there were media reports that Mukhesh Ambani owned Reliance Industries is said to be in talks to acquire Sameer Manchanda promoted multi-system operator, Den Networks Ltd. The option according to my sources is still open. 

#But why RJio might acquire it is the natural question? A possible acquisition of the company will give RIL a direct entry into 13 million households, including over 10.5 digital subscribers. Not only that, after the launch of JioGigaFibre, a fibre broadband network by Reliance Jio this space likely to witness a wave of activities in the fixed broadband market dominated by cross-spectrum players. Or in other words, this sector could mirror the developments or consolidation in the telecom sector.
#There were also news in the internet that Ambani’s JioGigaFiber is all set to Target Internet, Cable TV Networks and unleash the next phase of disruption after Reliance Jio triggered a tariff war driving consolidation in the world's second biggest telecom market. An average Indian telecom user now consumes 2 GB of data every month compared to 0.23 GB before Jio’s launch, according to the Telecom Regulator’s data. Hence this company  becomes one of the prime acquisition candidates, from the RIL Ltd's stable. 

#Today, the shares of its nearest competitor, Hathway Cable & Datacom Ltd closed at Rs.19.40 up 7.78%. Hence, we could see some rub-off effect in its share price in the short term. 

Buy the shares of Den Networks Ltd, at the CMP of Rs.47.90, for short term targets of Rs.53/55.50 -- above Rs.57, the stock is likely to catch Super Trend. The 9d conversion for the scrip is Rs.49.12, which it crossed during the intraday (Intraday high-- Rs.49.50) but could not close above that level. It is likely to face the 1st resistance at around Rs.56. However, a SL at Rs.44 is a must, for short, long, and mid- term players. 

The scrip of Kwality Ltd hit another buyer freeze today at Rs.17.52 in the BSE. If the share goes in this way, then Rs.22 can be achieved in this month only. Keep accumulating on declines. 

Pre-Session: A flat opening on the cards

[Note: Accumulate the scrip of 3i Infotech Ltd (Rs.3.70), TV Vision Ltd (Rs.5.90), Mandhana Industries Ltd (Rs.4.70) and Sri Adhikari Brothers Television Network Ltd (Rs.7.45)]

08-Aug-18: Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 2 points at the opening bell.

Overseas, Asian equities are trading higher after US stocks approached a fresh all-time high. US stocks edged higher yesterday, 7 August 2018 amid a relative cooling of protectionist rhetoric between the world's two largest economies and optimism growth can continue.

Back home, key equity indices ended the volatile session almost flat on Tuesday, retreating from record highs hit earlier in the day. The barometer index, the S&P BSE Sensex, fell 26.09 points or 0.07% to settle at 37,665.80. The Nifty 50 index rose 2.35 points or 0.02% to settle at 11,389.45.

The trading activity on that day showed that the foreign portfolio investors (FPIs) bought shares worth a net Rs 314.83 crore yesterday, 7 August 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 319.90 crore yesterday, 7 August 2018, as per provisional data.

Among corporate news, Bharat Petroleum Corporation, Cipla, Hindustan Petroleum Corporation, Lupin and Siemens will unveil their April-June 2018 result today, 8 August 2018.

GAIL (India) will be watched. The company announced that Sales Tax Department raised a demand of Rs 3449.18 crore and interest thereon Rs 1513.04 crore in respect of Hazira unit in Gujarat, treating the transfer of natural gas from the State of Gujarat to other states, as inter-state sales, during the period from April 1994 to March 2001. Based on the direction of Supreme Court of India in the special writ petition filed by GAIL, the Gujarat Sales Tax Tribunal passed the order in GAIL's favour and gave instructions for reassessment, considering inter-state transfer as branch transfer.

The Sales Tax Department had filed rectification application under section 72 of the Gujarat Sales Tax Act, 1969 with the Gujarat Sales Tax Tribunal which was dismissed by the Tribunal. Thereafter, the Sales Tax Department had filed petitions before the High Court of Gujarat against the order of the Tribunal and the same was pending as on 31 March 2018. The High Court of Gujarat vide Order dated 31 July 2018 has dismissed the petitions filed by the Gujarat Sales Tax Department. The announcement was made after market hours yesterday, 7 August 2018.

~with inputs from Capital Market - Live News...

Wockhardt Ltd: Buy

CMP: Rs.609.15

I have Not been a fan of pharmaceutical sector since the last few years, however I feel this stock is ready for upmove after the Q1FY19 results.

Wockhardt Ltd reported narrowing of its consolidated net loss to Rs.86 crore for the quarter ended June. The company had registered a loss of Rs 410 crore in the same period a year ago.  Its Consolidated Sales revenue increased by 13.13% to Rs.1,008 crore during the reported quarter from Rs.891 crore in the corresponding period of 2017-18. 

Buy the stock at the CMP of Rs.609.15 for short term targets of Rs.722/781; SL: Rs.560. This is a special stock recommendation for the ardent blog readers. This stock has NOT been recommended to the Premium Group Members. 

Note: I will be recommending a Small Cap Short Term Momentum Counter to the Premium Group members tomorrow, to be bought on Monday morning; apart from regular updates on the earlier recommended counters.

If you want to know the name, then you should either trade through my associated brokerage house or subscribe to my Yearly/Life Time Premium Services. Now Highly Discounted Life Time Subscription Offer is going on, which you can avail of... You can reach me at: suman2005s@rediffmail.com or sumanm2007s@gmail.com. 

Should You Prefer Mutual Funds over Equities?

Photo: The Financial Literates

I get lot of mails asking me, whether investing through Mutual Funds is less riskier than through direct investment in stock market. Also, they ask if the risk return  ratio is same in both the cases or not.

#No it is not at all less risky to invest through mutual funds, as they also deploy their funds in the stock market. However, in the initial stages, when an investor has not much exposure in the capital market, he/she can take the Mutual Funds route, provided they have some information on the quality of the fund manager.

#2ndly, Mutual Funds can only buy, they cannot sell, unless there is redemption of the fund. In case of open ended funds, they will keep on holding on to your investments in various  securities, unless you ask  them to sell and return your money. This means if the stocks in your portfolio suddenly falls, from the yearly highs, then you might also get negative returns in your portfolio, inspite of stocks making yearly highs, sometime in the year. 

Since, Mutual Funds cannot sell, you cannot do both ways trading in your portfolio which is very essential in a falling market or when the market is trading sideways. 

#In case of stock market, you research a stock and not only invest but also have keep track of the same. In case of Mutual Funds, you are at the mercy of the fund manager in terms of stock picking and at the same time you need to  keep a track on the NAV of the funds. This means you cannot sleep keeping your money in Mutual Funds.

#In case of equities, you can track a few stocks  and play. But in case of Mutual Funds, choice of funds is a big issues, as there are various types of dishes available, viz. small cap, mid cap, real estate, infrastructure, etc funds available at your disposal; apart from being close ended or open ended. A novice investor, generally gets confused as where to invest.  

#Investment through SIP can be dangerous, as the Mutual Funds will deploy your funds even when the market is at the peak. Their work is to invest in equities, so they will  not wait for market correction to invest. This could be perilous if the market is at the peak. 

However, there are some positives also in Mutual Funds, as seen in the above photo. 

Hence, looking from all these  angles, it is always better to invest directly through equities, provided you take the help of experts.

Winning Strokes: Think Different

The market jumped on Friday after two consecutive sessions of falls, boosted by banks stocks. The barometer index, the S&P BSE Sensex, rose 391 points or 1.05% to settle at 37,556.16. The Nifty 50 index rose 116.10 points or 1.03% to settle at 11,360.80. Shares got a boost after the weather department forecast a recovery in monsoon in August and September.

Among secondary barometers, the BSE Mid-Cap index rose 0.93%, underperforming the Sensex. The BSE Small-Cap index rose 1.16%, outperforming the Sensex.

The market breadth, indicating the overall health of the market, was tilted in favour of buyers. On BSE, 1771 shares rose and 936 shares fell. A total of 143 shares were unchanged.

The India Meteorological Department (IMD) said on Friday, 3 August 2018, the rainfall as a whole during the second half of the season (August and September) was likely to be 95% of a long period average.

On the macro front, the Indian service sector remained in expansion territory for the second consecutive month in July. The seasonally adjusted Nikkei India Services Business Activity Index posted above the neutral 50.0 threshold for the second consecutive month in July. Moreover, rising from 52.6 in June to 54.2 in July, the latest reading signalled the strongest rate of output growth since October 2016. Favourable demand conditions were cited by panellists as the key factor behind the latest upturn. The data was unveiled during trading hours today, 3 August 2018.

Overseas, European equities were trading higher helped by a rally in banking shares after Royal Bank of Scotland Group announced plans to resume payouts. Asian stocks ended mixed. The mood was cautious amid an elevation in trade tensions between the US and China. The trade war between the world's top two economies intensified midweek after US President Donald Trump raised pressure on China by proposing a higher 25% tariff on $200 billion worth of Chinese imports. China reportedly responded on Thursday, saying that it was fully prepared to defend the interests of the people and free trade.

Investors were also cautious ahead of the July US jobs report due later on Friday, which will give a reading on the health of the world's largest economy and possible clues about the pace of Federal Reserve interest rate rises.

US stocks ended a rocky session decidedly higher on the back of a record rally by Apple that took the iPhone maker to a market cap above $1 trillion, a runup that helped Wall Street set aside bothering trade issues between the US and China.

On the US data front, initial jobless claims rose by 1,000 in the latest week, however they were near their lowest levels since the 1970s. The report comes a day ahead of the highly anticipated July jobs report. Separately, factory orders rose 0.7% in June.

Investors also digested the latest moves from the Bank of England (BoE), which pushed interest rates above their financial crisis lows on Thursday but signalled it was in no hurry to raise them further with an uncertain Brexit on the horizon. BoE raised its main interest rate by 25 basis points to 0.75%, as had been expected.

#The stock of 3i Infotech Ltd was given a buy 1st to Premium Members and also to the followers of this blog only some weeks back at around Rs.3.60. The stock hit the UC in the BSE at Rs.3.94 before closing at Rs.3.92. 

#The scrip of Kwality Ltd hit another buyer freeze today in the BSE at Rs.15.15. The share of this company was recommended to the Premium Members at around Rs.11. Today, I have recommended another small cap counter to the Premium Members, whose name will be disclosed on next Monday. Those  who are interested for Yearly/Lifetime Premium Membership, they can contact me at: suman2005s@rediffmail.com.

#The stock of SKM Egg Products Exports (I) Ltd was given to the Premium Members yesterday at around Rs.78.10. The scrip hit the UC in the BSE at Rs.81.4, before closing at Rs.80.40. We can expect for targets of Rs.91-92 in the coming days. 

#The share of TV Vision Ltd hit another buyer freeze in the BSE today at Rs.5.51. Its group company Sri Adhikar Brothers Television Network Ltd also hit the upper circuits in the BSE at Rs.6.87. I hope most of you have averaged the scrip and is looking for good returns, going forward. 

#

~~with inputs from Capital Market - Live News...

Market Mantra

Shares jumped on bargain hunting after a recent sell off. The indices opened higher and firmed up in mid-morning trade. Indices turned range bound in early afternoon trade. The Sensex rose 297.42 points, or 0.80% at the day's high of 37,462.58 in mid-morning trade. At 13:48, the Sensex was trading at 37,484.12 up 318.96  points (+0.86% and NSE was at 11,333.85 up 89.15 points (+0.79%).

Among secondary barometers, the BSE Mid-Cap index was up 0.98%. The BSE Small-Cap index was up 1.11%. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was tilted in favour of buyers. On BSE, 1695 shares rose and 702 shares fell. A total of 120 shares were unchanged.

On the macro front, the Indian service sector remained in expansion territory for the second consecutive month in July. The seasonally adjusted Nikkei India Services Business Activity Index posted above the neutral 50.0 threshold for the second consecutive month in July. Moreover, rising from 52.6 in June to 54.2 in July, the latest reading signalled the strongest rate of output growth since October 2016. Favourable demand conditions were cited by panellists as the key factor behind the latest upturn. The data was unveiled during trading hours today, 3 August 2018.

Overseas, Asian stocks were mixed. The mood was cautious amid an elevation in trade tensions between the US and China. The trade war between the world's top two economies intensified midweek after US President Donald Trump raised pressure on China by proposing a higher 25% tariff on $200 billion worth of Chinese imports. China reportedly responded on Thursday, saying that it was fully prepared to defend the interests of the people and free trade.

Investors were also cautious ahead of the July US jobs report due later on Friday, which will give a reading on the health of the world's largest economy and possible clues about the pace of Federal Reserve interest rate rises.

US stocks ended a rocky session decidedly higher on the back of a record rally by Apple that took the iPhone maker to a market cap above $1 trillion, a runup that helped Wall Street set aside bothering trade issues between the US and China.

On the US data front, initial jobless claims rose by 1,000 in the latest week, however they were near their lowest levels since the 1970s. The report comes a day ahead of the highly anticipated July jobs report. Separately, factory orders rose 0.7% in June.

Investors also digested the latest moves from the Bank of England (BoE), which pushed interest rates above their financial crisis lows on Thursday but signalled it was in no hurry to raise them further with an uncertain Brexit on the horizon. BoE raised its main interest rate by 25 basis points to 0.75%, as had been expected.

#Yesterday, the stock of SKM Egg Product Exports Ltd, was recommended to the Premium Members at around Rs.78.1. The stock rose to Rs.81.95 intraday and is now trading at Rs.81. Egg prices have increased by more than a rupee, up to Rs.5.50 apiece, as compared to the same period last year, due to a combination of reasons including the recent truckers strike and increased consumption in northern India. Egg traders said the increased supply to Andhra Pradesh, where the government had increased the number of eggs served under its midday meal scheme, has also contributed to the rise in price.  All the export oriented companies are likely to do well in the cominjg days due to INR depreciation.
For targets  and other details, you either need to trade through my recommended brokerage house or subscribe to my Yearly/Lifetime Premium Services. 

#An Exit from Unitech Ltd (Rs.4.15) was suggested to the Premium Members yesterday. The short term traders who follow my blog,can leave the counter with either no profit or no loss or with minimum loss. The company is beset with a host of problems and the stock is not performing as expected. 

#The scrip of TV Vision Ltd has hit another buyer freeze in the NSE today at Rs.5.4. Similarly, the stock of its group company Sri Adhikari Brothers Ltd has also hit the upper circuits at Rs.6.8. If you remember, I have repeatedly asked the investors to accumulate both the stocks in all market dips. 

#The scrip of HDIL touched Rs.25.35 today. You should look for targets of Rs.31, unless Rs.21 is broken on the upside. The point is that the real estate market all over India is still to gather optimum steam. 

#The stock of Kwality Ltd hit another buyer freeze today at Rs.15.1. I am expecting it to touch Rs.19, in the coming days. Keep accumulating on dips (if any).

#The share of Monnet Ispat and Energy Ltd hit Rs.18.2 and is now trading at Rs.16.7. Since the scrip reached its first target of Rs.17, the investors and traders are requested to book some profits in the counter. 

~with inputs from Capital Market - Live News...

Winning Strokes: Think Different

Stocks drifted lower in volatile trade after the Reserve Bank of India's monetary policy committee raised repo rate by 25 basis points. The barometer index, the S&P BSE Sensex, fell 84.96 points or 0.23% to settle at 37,521.62. The Nifty 50 index fell 10.30 points or 0.09% to settle at 11,346.20.

Broader market bucked negative market trend. Among secondary barometers, the BSE Mid-Cap index rose 0.19%. The BSE Small-Cap index rose 0.26%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was positive. On BSE, 1401 shares rose and 1295 shares fell. A total of 144 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 1.11%), the S&P BSE Oil & Gas index (up 0.99%), and the S&P BSE FMCG index (up 0.77%) outperformed the Sensex. The S&P BSE Auto index (down 0.77%), the S&P BSE Metal index (down 0.62%), the S&P BSE Bankex (down 0.55%) underperformed the Sensex.

The Reserve Bank of India (RBI) concluded its two-day monetary policy meeting today, 1 August 2018. The resolution of the Monetary Policy Committee (MPC) was unveiled at 14:30 IST. On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the MPC decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.5%. Consequently, the reverse repo rate under the LAF stands adjusted to 6.25%, and the marginal standing facility (MSF) rate and the Bank Rate to 6.75%. The decision of the MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

Manufacturing conditions across India improved at a modest and slower pace at the start of the quarter, reflecting softer rises in output, new orders and employment. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) posted 52.3 in July, down from 53.1 in June. Although modest, the latest improvement in the health of the manufacturing sector was the second-strongest (behind June) since January. The data was released during trading hours today, 1 August 2018.

The stock of Unitech Ltd (Rs.4.20) was recommended today in this blog at around Rs.4.25, for short term targets of Rs.5.5-7, as the company is slowly becoming debt light. The company will soon sell off 600 acres of land. Stay invested, it is expected to give a strong move soon.

The scrip of Kwality Ltd today hit another buyer freeze at Rs.13.75. To know the approximate target prices, you need to join the Premium Information Service. Now there is cheap Life Time Offer going on....so avail of the same, before the price shoots up.  

3i Infotech Ltd will be one of the biggest beneficiaries of the devaluation of the INR Vs USD, as the company has office in more than 50  countries. The stock closed flat at Rs.3.55 before touching Rs.3.65 intraday.

The stock of Monnet Ispat & Energy Ltd recommded in this blog at around Rs.11 last month hit another buyer freeze today at Rs.15.80. It closed above a major resistance today in the NSE. The next targets for the scrip are Rs.19-21.

~~ with inputs from Capital Market Live News..

Market Mantra

Key benchmark indices were trading higher in early trade on positive global cues. At 10.26 am, the BSE Sensex was trading at 37,645.53 up 38.95 points or 0.10% while NSE was trading at 11,380.40 up 23.90  or 0.21%.

Among secondary barometers, the BSE Mid-Cap index was up 0.50%. The BSE Small-Cap index was up 0.39%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was strong. On BSE, 769 shares rose and 302 shares fell. A total of 43 shares were unchanged.

The Reserve Bank of India (RBI) will conclude its two-day monetary policy meeting today, 1 August 2018. The resolution of the Monetary Policy Committee (MPC) will be unveiled at 14:30 IST today, 1 August 2018. RBI raised its benchmark policy repo rate by 0.25% to 6.25% in its second bi-monthly monetary policy for 2018-2019 on 6 June 2018.

Overseas, most Asian stocks edged higher, taking cues from the positive session seen in the US market following news that the US and China may restart official talks about their months-long trade dispute.

US stocks closed higher Tuesday, as investors continued to digest an onslaught of quarterly earnings reports, with the vast majority beating expectations. But headline news on trade continued to drive markets.

#Buy Unitech Ltd at around Rs.4.25 for short term targets of Rs.5.5-7. According to the Simply Wall St, Unitech Ltd’s level of debt is appropriate relative to its total equity, at 36.91%. This range is considered safe. At the current liabilities level of ₹168.08B liabilities, it seems that the business has been able to meet these obligations given the level of current assets of ₹232.50B, with a current ratio of 1.38x. Generally, for Real Estate companies, this is a reasonable ratio since there is a bit of a cash buffer without leaving too much capital in a low-return environment. In the last hearing, the honourable Supreme Court of India had directed the committee it had set up in the Unitech case, to speedily auction over 600 acres of unencumbered land properties of the embattled firm located in Agra, Varanasi, Bengaluru, and Sriperumbudur near Chennai so that money is refunded to homebuyers. This is expected to substantially cut the debts of the company. Unitech Ltd recently sold its Bangaluru land to Devas LLP at Rs.49 crore. The company has deposited Rs.42.73 crore in court after tax deduction at source (TDS). It had already deposited Rs 5 crore, legal sources present at the hearing say.In this slowly and slowly the company is coming out of the debt fiasco. The stock price is getting hit due to wrong reasons. I hope by October, '18, the stock should trade near Rs.7 levels.

#Kwality Ltd has hit another buyer freeze today in the Rs.13.75 in the NSE. Recently, there were some positive news in the media, which is propelling it to rise. The scrip was recommended to the Premium Members on this Sunday to be bought on Monday. 

#Buy the shares of 3i Infotech Ltd at the CMP of Rs.3.60 for short term targets of Rs.6-6.3. The company is likely to benefit from the depreciating INR as it has huge overseas presence. For example in Q1FY19, the tech giant Infosys Ltd's  Dollar revenue grew by 0.9% at $2,831 million versus $2,805 million (QoQ). In Q1FY19, the consolidated revenue of 3i  Infotech Ltd rose to Rs.241.98 crore versus Rs.239.31 crore though profit fell marginally to Rs.15.19 crore versus Rs.16.88 crore on YoY basis.

Recently, 3i Infotech Limited, the global Information Technology company launched Maggie – a Virtual IT Engineer. Maggie is part of cognitive service desk that promises to help contact centres to address hundreds of user requests simultaneously of the digital-age users anytime, from anywhere.

#The shares of both TV Vision Ltd (Rs.4.95) and Sri Adhikari Brothers Television Network Ltd (Rs.6.20) hit their respective buyer freezes today. The stocks were repeatedly asked to be accumulated in this blog. I have already given the short term targets for both the scrips, in my last blog post. 

~~with inputs from Capital Market - Live News...

Winning Strokes: Think Different

On last Sunday, the share of Kwality Ltd (Rs.13.10) recommended to the Premium Members to be bought at 9.15 am, this Monday. The stock fell to Rs.12.20 yesterday before hitting the UC. Should you buy tomorrow or give it a go? 

The name of Housing Development & Infrastructure Ltd was mentioned yesterday, along with a few Bombay based real estate counters to the Premium Members, after a daily posted some encouraging reports on  the real estate sector . Today HDIL made a high of Rs.24.15 before  closing at Rs.24.10 up 19.65%. The company has one of the highest land parcels among all the Mumbai based real estate companies. 

The stock of TV Vision Ltd (Rs.4.75) as expected has started to hit the buyer freeze. I am expecting it touch Rs.7-8  very soon. Keep accumulating on declines. 

The investors and traders who are looking to invest in tea scrips can go for Peria Karamalai Tea & Produce Company Ltd at the CMP of around Rs.300 for short term targets of Rs.317-387. This is from the reputed LNB Group, one of India's leading diversified business conglomerate headquartered in Kolkata. The Peria Karamalai Tea & Produce Company Limited was incorporated in the year 1913 and is one of the oldest high quality black tea manufacturers in the country with modernised manufacturing facilities in South India producing RC & NRC CTC Teas. It has 5,500 acres of land in Tamil Nadu with a planted area of 3,900 acres across 4 gardens - Karamalai, Akkamalai, Vellamalai and Nadumalai. The Company also manages Pepper and Timber plantations and is planning to invest over~$2 Million to establish a Green Tea Production facility. In the early 90's the company commissioned 9 Wind mills with a total capacity of 2.5 MW in Tamil Nadu and is currently developing a 3MW captive solar facility. With a production capacity of over 5 million kilos of quality tea every year, the company prides itself on running a successful business which directly employees over 3000 families. 

In the international front even as there has been a drop in orthodox tea prices on account of uncertainty in Iran, prices of dust teas have risen about 9% compared to a year ago as leading blenders are buying good volumes of tea bags, the consumption of which is picking up in the country. 

The scrip of Sri Adhikari Brothers Ltd has hit the buyer freeze today at Rs.5.95. I am expecting it move to around Rs.8-9 in the coming days. The stock of this reputed media player has fallen from grace and should recover.  I been asking to accumulate this share along with TV Vision Ltd since the last few months; after the price stabilizes. According to my sources, the company has placed a resolution in front of the lenders, which is expected to further ease selling pressure on the scrip. 

Premium Members who till now have not given their Whatsapp Numbers are requested to do the same at the earliest. It is because I have lost all your cell numbers due to my earlier mobile going for a toss. If you do not give your mobile numbers, then you  might miss sudden intraday inputs from me; as I get news/rumours from the sources. However, you would continue to get mails in your mail boxes, as usual. 

Also, the offer of Premium Life Time subscription is going on, at a cheap rate till the end of October. Those who are interested can mail me at: suman2005s@rediffmail.com. 

Moreover, if you have around Rs.3-5 lakhs then we can go for joint venture with 60:40 profit sharing ratio between you and me. This will be mainly anchored on investment based themes, with proper stop losses and rare trading initiatives. If the trading is limited then there is more chance to make profits; though sometimes prudent trading also gives good returns. However, the long term investment goals in stock market suffered, after this insane Narendra Modi government brought in LTCGT. 

Winning Strokes: Think Different

At the onset I would like to say, that this blog could not be updated during the last few days, as I am having repeated attacks of fever. Don't know the reasons, but this has recently become an eyesore for me, affecting my overall activities. Anyway, the fever has subsided a bit, and hence I thought to update the blog, so that you get some hint on my recommended counters. 

Shree Renuka Sugars Ltd, which was recommended on the basis of ethanol story and GST reached it target of Rs.13 (intraday high of Rs.13.5). I hope most of the Premium Members booked profits today as it closed at Rs.12.81.

The stock of Sintex Industries Ltd today made a high of Rs.14.1 before closing at Rs.13.91. Pan-India strike by truckers over six days hits the textile sector hard and this is probably reflected in the share price of the company. However, I feel with no immediate triggers in the sight, it will take sometime for the stock to move up. 

The stock of BPL Ltd which today  mad a high of around Rs.61.2, closed at Rs.57.25. The investors and traders should book profits in the counter and hold the rest with a SL at Rs.56.

I will be recommending a small cap momentum stock to the Premium Members on Monday, apart from updates on stocks like Rasoya Proteins Ltd, Southern Online Bio Technologies Ltd, etc.. Those who are interested to know the name of scrip and get updates are requested to join Premium Service. Now life time offer (30 years) at the rate of Rs.2000 per  year is going on; you can take advantage of the same before the price shoots up.  

Also, female investors/traders are requested to send a proper mail to me, when they inquire about the details of the Premium Service. Incomplete mails without name will be summarily rejected and their e-mails will be blacklisted. I don't understand why majority of Females, have this habit of sending me mails without  a name.. If you are so fearful that your email addresses or names might be misused by me, then kindly don't send me mail. I will be better off, without you...!! If you cannot write a proper email, then take admission in 7th standard once again....

Winning Strokes: Think Different

The stock of BPL Ltd recommended to the Premium Members at Rs.47.5 this week, jumped 20% today and hit the Upper Circuits. The stock closed at Rs.57.80 in the BSE. Where is the stock heading?

The stock of IFCI Ltd recommended to the Premium Members at Rs.15.65 this week, touched a high of Rs.16.90 intraday, before closing at Rs.16.27. We can look for targets of Rs.19-21 in the coming days, due to the positives mentioned in my earlier post. 

The stock of Shree Renuka Sugars Ltd recommended to the Premium members at around Rs.10.10 today made an intraday high of Rs.12.30 in the BSE before closing at Rs.11.5, with a gain of 11.43%.

The share of Dwarikesh Sugar Industries Ltd which was recommended to the Premium Members this week at around Rs.14.5, today made an intraday high of Rs.16.3, before closing at Rs.16.05 up 10.31% in the BSE. What is the next target for the scrip?

The scrip of Sintex Industries Ltd recommended to the Premium Members and in this blog at around Rs.13.65 made a high of Rs.14.43 today in the BSE before closing at Rs.14.13. We can look forward for targets of Rs.17-19 in the coming days. You should accumulate the scrip in intraday declines, so that your average price comes down.

The share of Globus Spirits Ltd recommended to the Premium Members at Rs.109 this week made an intraday high of Rs.118.85 before closing at Rs.118.30 up 5.58%. We can look for targets of Rs.121-122, in the coming days. But then on what grounds was the share recommended?

I have come out with a Cheap Lifetime Subscription Package (for 30 years) of my information Service, both for the Cash and the F&O market. Those who are interested can send in a mail at: suman2005s@rediffmail.com. The price of this offer is going to rise post Durga Pooja/Dusshera in 2018. This is much better (9 times cheaper) than what you pay for one year. 

Also, I am looking forward for some ace investors, who is ready to have a JV with me on the share market investments. The said angel investor should have a minimum investment capacity of Rs.5-10 lakhs, with around Rs.5 lakhs as buffer, to average the scrip/s in case market gives opportunity. There will be no trading in the counters, only investment based strategy would be employed. The time period of holding would be 2-3 years. The sharing ratio would be 60:40, between you and me.

Winning Strokes

The stock of PC Jeweller Ltd (Rs.93.70), today made a high of Rs.97.55 in the NSE. The 1st target has been reached and I am sure most of the Premium Members booked profit in the counter. However, the fact is that the gold prices could rise in the international market in the short term and hence unless Rs.86 is breached on the downside, the long term investors can keep holding the counter for the next targets of Rs.111-112. 

Recently, there was media reports that Rakesh Jhunjhunwala has increased his stake in J P Associates Ltd (Rs.15.15) to 1.98%, raising lot of eyebrows. It is because I feel may be RJ is thinking that in 2019, the BSP might have a better standing than of today.  Its CMD, Mr.Manoj Gaur has high political connections and it is unlikely that this company is going to fade from the Indian map. 

This company basked in limelight throughout the last decade, building India’s first F1 racing tracks, laying out one of the country’s showcase expressways, launching India’s biggest housing project and rapidly diversifying into multitude of business areas, where it quickly captured large market shares. The company continued to grow during 2004-07 period till the global financial crisis, knocked down the essential pillars of the Indian economy. 

The company piled up debts and the stock Stock of JP Associates Ltd fell from its peak price level of Rs.340 (adjusted basis) in April 2008 to around Rs.6 in 2016. I remember giving a buy at around Rs.8 in this blog, a couple of years back; after which the scrip traveled near Rs.30, giving ~four fold returns to the patient investors. 

There is a news today that, FMO has introduced a bill to further amend the BIA, therefore, till the contours of that fiat comes out in the public domain, I would prefer to have a range play between Rs.13-21.

Sintex Industries Ltd went through selling pressure today and closed at Rs.13.20, even though the company is expected to get benefited due to the duties imposed on imported apparel. The company came out with good set of numbers for the Q1FY19, and I am sure over the medium term, the patient investors would make money in this counter. 

The stock of IFCI Ltd (Rs.15.55) was recommended to the Premium Members this week on the hope that it  is likely to recover ~Rs 2,000 crore from NPA resolution in FY'19. Also, the company is planning to raise around Rs.3000 crore through debt, to fund its new businesses. This Infrastructure lender recently recovered Rs.280.30 crore and has been allotted over 5.79 lakh equity shares of debt-ridden Bhushan Steel (BSL), which has been acquired by Tata Steel, under the insolvency process. The value of 5.79 lakh of Bhusan Steel Ltd at the CMP of Rs.24.05 comes to around Rs.139 lakhs. You can buy, at the CMP  of Rs.15.55, for a short term target of Rs.19.

The stock of BPL Ltd (Rs.48) was recommended today as the company would be a major beneficiary of the GST cut on some of the electric and electronics items (or say consumer good). The company has a major presence in the rural market.  I am looking for a short term target of Rs.53, in the coming days. 

The scrips of Renuka Sugars Ltd (Rs.10.30) and Dwarikesh Sugar Industries Ltd (Rs.14.50) were given a buy to the Premium Members today. In fact a buy was initiated for all the ethanol manufactures, after positive report oozed out from the government regarding GST. With the crude oil on the boil, I am looking forward for short term targets of Rs.13-15 for Shree Renuka Sugars Ltd and Rs.17 for the latter. 

Today, the S&P BSE Mid-Cap index rose 1.29%. The S&P BSE Small-Cap index rose 0.93%. Both these indices outperformed the Sensex. The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,529 shares rose and 1,061 shares fell. A total of 186 shares were unchanged.

I have come out with a Cheap Lifetime Subscription Package (for 30 years) of my information Service, both for the Cash and the F&O market. Those who are interested can send in a mail at: suman2005s@rediffmail.com. The price of this offer is going to rise post Durga Pooja/Dusshera in 2018. This is much better (9 times cheaper) than what you pay for one year. 

Also, I am looking forward for some ace investors, who is ready to have a JV with me on the share market investments. The said angel investor should have a minimum investment capacity of Rs.5-10 lakhs, with around Rs.5 lakhs as buffer, to average the scrip/s in case market gives opportunity. There will be no trading in the counters, only investment based strategy would be employed. The time period of holding would be 2-3 years. The sharing ratio would be 60:40, between you and me. 

~~with inputs from Capital Market Live News

Buy: Sintex Industries Ltd

CMP:  Rs.13.60

Face Value: Re.1

Book Value: Rs.68.33

Dividend Yeild: 1.84%

EPS: Rs.2.46

P/E: 5.52

Industry P/E: 21.16

The Sintex Industries Ltd after the demerger houses the textile division of the company. Bharat Vijay Mills (BVM), the Textile Division of SIL was established in 1931. It is is a Composite textile mill, which manufactures products across the supply chain. The Company has grown to a $50 million company with a work force of over 1600.Today, 

BVM is a vertically integrated plant having its own Spinning to finishing facilities. BVM has been the undisputed leader in varied product mix for the last 70 years with a continuous expansion of its product range. Since last 20 years, it has established a name in the global marked with its yarn dyed/piece dyed shirting, corduroy & bottom weight . SIL has set up a marketing and technical joint venture with Italian player Cancilini to tap the European market for shirting fabrics. Our Its manufacturing operations are spread over an area of three lakh sq. meters across strategic locations. 

Sintex is one of the largest producers in India.

Financials: The company reported a rise of 11.5% in the net profit for Q1FY19 at Rs.39.1 crore against Rs.35.1 crore reported during the same quarter of last year. Its revenues for Q1FY19 rose 35% to Rs.925.3 crore against Rs.687.6 crore on year on year basis. On an operating basis, the EBITDA rose 45% to Rs.109.9 crore against Rs.75.6 crore, year on year. Meanwhile, the consolidated EBITDA margin came in at 11.9% in FY19 as against 11% on Y-o-Y basis.
The company has a Debt Equity Ratio of nearly 1 (one), Current Ratio of around Rs.2.2 and Interest Coverage Ratio of 2.5. The debt equity ratio is a little high because of continuous capex during the last few years. However, this will get reduced in the coming months as its new capacity goes on stream.

Key Triggers:

#The demerger has enabled Sintex Industries Ltd to focus on its core businesses by streamlining operations, cutting costs and ensuring more efficient management control.

#The first phase comprising 3.06 lac spindles of the high-tech yarn facility at Pipavav, Gujarat commenced operations in the first half of FY 2016-17 with spinning quality compact yarn for weaving and knitting application. It achieved a capacity utilization of about 98% by the close of the last financial year.

#Sintex Industries Ltd is also implementing a spinning project with 6 lacs spindle in two phases at Amreli, Gujarat. After setting up the project, around 50% of yarn will be used for captive use and balance would be sold in the open market. The expansion will be eligible for getting interest subsidy of 7% as applicable for spinning units under the Textile Policy Scheme of Gujarat Government.

#In last 4-5 years the company has spent around Rs.4000 crore in Textile business. Further, the company is undergoing a capex of Rs.3200 Crore which is expected to get completed by FY19. Hence, after these slew of expansions, the revenue of the textile division is likely to go up significantly.

#In comparison to the series of expansions, the market cap of the company is only around Rs.807.38 crores. This leaves lot of scope for the increase in shareholder value.

##Last week, the government of India, doubled the import duty on over 50 textile products, like jackets, suits and carpets to 20%, a move that is aimed at promoting domestic manufacturing. The imported products which have become expensive include woven fabrics, dresses, trousers, suits and baby garments.
Under the BVM brand, Sintex Industries Ltd supplies fabrics to reputed international and domestic brands like Arrow, Van Heusen, Marks & Spencer, Ann Taylor, and global fashion labels like Armani, Hugo Boss, Diesel, Burberry, S.Oliver, banana republic, Pepe Jeans, Nike, Zodiac, Canali, The Royal Mint, Massimo Dutti, Mexx, Zara, DKNY, Armani, Colour Plus, H&M, Versace and Tommy Hilfiger.

If we look at the candle stick chart, we can see that it has formed an inverted head like pattern on the daily chart with falling volume, indicating that the company has perhaps formed an intermediate bottom. Buy the stock at the CMP of Rs.13.6 for short term targets of Rs.18-19.

Winning Strokes: Think Different

The stock of PC Jeweller Ltd touched a high of Rs.85 before closing at Rs.81.90  up 15.6% in the NSE. I had mentioned in my yesterday's post, that unless Rs.67 is broken, the downside seems to be capped. I had in this week recommended a buy to the Premium Members. 

Sintex Industries Ltd (Rs.13.60) and Sintex Plastics Technology Ltd (Rs.30.80) are two different companies, though from the same group. So, corporate governance issue in one entity should not been seen with the "GLASS" of another.  Can we analyse the financials of Tata Steel Ltd, by taking into consideration the management of Tata Motors? This is the mistake what Kunal Thanvi, the editor of Smart Money Secrets (www.equitymaster.com) is doing....

What is happening in the scrip of TV Vision Ltd (Rs.4.70) and in other SAB Group of companies? Do you know the latest developments in the company?

It seems the stock of Bhusan Steel Ltd (Rs.23.35) got a support at around Rs.21-22 ranges. However, with the construction and automobile sector going nowhere, we need to carefully look at the counter. 

It seems it has become a habit of sorts for Narendra Modi, to call Rahul Gandhi, as immature individual, but as a seasoned politician what good, he and his government has done to the Indian economy; except giving verbose speeches and then window dressing it with statistics? 

Perhaps, never in the History of India, has such FIRE SELL Indian assets taken place, with once blue chip companies like Lanco Infratech Ltd (Re.0.75), Bhusan Steel Ltd, IVRCL Ltd (Rs.1.55), etc getting sold and few more like Reliance Communications Ltd (Rs.12.95), J P Associates Ltd (Rs.15.10), Videocon Industries Ltd (Rs.6.15), Gammon India Ltd (Rs.2.15), etc reeling under knee deep debts. 

In a soccer field, it is the scoring of goals which matters and not sprinting for 90 minutes. Narendra Modi's foreign sojourn to more than 50 countries, yielding an expenditure of around Rs.1484  crore yielded what?

Winning Strokes: Think Different

Photo: Decospan

Stocks ended with small losses after a volatile session of trade. The barometer index, the S&P BSE Sensex, fell 22.21 points or 0.06% to settle at 36,351.23. The Nifty 50 index fell 23.35 points or 0.21% to settle at 10,957.10. Gains triggered by index heavyweights Reliance Industries and ITC were almost offset by slide in Kotak Mahindra Bank, L&T and HDFC. Investors were cautious ahead of a no-confidence motion against the government. On Friday, 20 July 2018, the parliament will debate a no-confidence motion tabled by opposition parties against the Prime Minister Narendra Modi's government on Wednesday, 18 July 2018, the first day of the monsoon session. The monsoon session of Parliament began on Wednesday, 18 July 2018, and it will conclude on 10 August 2018.

Among secondary barometers, the BSE Mid-Cap index fell 0.63%. The BSE Small-Cap index fell 1%. Both these indices underperformed the Sensex. The market breadth, indicating the overall health of the market, was weak. On BSE, 827 shares rose and 1754 shares fell. A total of 146 shares were unchanged.

Today the stock of P C Jewellers Ltd (Rs.70.85) touched Rs.68.80 intraday. It seems the stock will close near Rs.60, in the next few trading sessions if Rs.67 is not held on the downside. The recent management decision to pull out of buy back of shares, has caused a panic reaction among the shareholders, which will take some time to erase. 

The stock of Sintex Industries Ltd today closed down at Rs.14.05 in the NSE. However, the company is doing fine and the investors should do well to buy the scrip in every decline. 

Till the confusion regarding no - confidence motion tabled in the parliament is over, it will be better if both the investors and traders stay away from the market. It will not be prudent to play in the F&O segment as the trend for the short term remains unclear.

I am thinking to start a life time subscription package for Premium Information Service at nominal cost of Rs.2000 per year or Rs.60,000 in total -- the amount has to be paid in one go. Also, if you have a kitty of Rs.5-10 or more then we can invest in a couple of well researched scrips/shares and keep holding for a couple of years (No trading in between). I am sure the money will get more than doubled during the time -- the profit sharing would be 60:40 between you and myself. The interested candidates can mail me at:suman2005s@rediffmail.com.

~~ with inputs from Capital Market Live News...

Winning Strokes: Think Different

Today, the stock of Sintex Industries Ltd (Rs.14.75) was recommended to the Premium Members, after the company came out with good set of numbers for the Q1FY19. The Book Value of the shares of the company is Rs.68.33 and the EPS is Rs.2.39. The scrip should give good returns in the next 6 months time frame. 

Today, there were media reports that the big bull Rakesh Jhunjhunwala has increased his stake to Rs.1.98% in the troubled company, J P Associates Ltd. If you remember, I have been recommending the company for short term plays since some time. You can buy at the CMP of Rs.14.91 for short term targets of Rs.19-21.

The stock of MBL Infrastructure Ltd closed at Rs.15.85. For the time being stay away from this counter, due to lack of clarity. 

The scrip of e-Governance company Alankit Ltd today closed at Rs.24.20 in the NSE, down  around 2.02%. In the last budget in line with the Narendra Modi government's thrust on digital, finance minister Arun Jaitley announced a host of technology driven projects in areas such as budgeting, depositing fees and fines among others.

Key benchmark indices today dropped in volatile trade as the opposition parties tabled a no-confidence motion against Prime Minister Narendra Modi's government. The barometer index, the S&P BSE Sensex, fell 146.52 points or 0.4% to settle at 36,373.44. The Nifty 50 index fell 27.60 points or 0.25% to settle at 10,980.45. The Nifty settled below the psychologically important 11,000 mark after moving above and below that level in intraday trade.

I am thinking to start a Life Time offer (30 years) of the Premium Information Service at Rs.60,000 for delivery based calls and Rs.1 lakh for both Delivery and F&O Calls. Those who  are interested can mail me at: suman2005s@rediffmail.com/ sumanm2007s@gmail.com. 

Winning Strokes: Think Different

The Intraday call of IOC Ltd (Rs.164.05) today hit a high of Rs.165, which is almost near the target of Rs.165.5. This was an intraday call and hence I believe most of you have booked profit and exited the counter. 

Alankit Ltd today closed at and above Rs.24.70 in both the exchanges. I am expecting the scrip to gather momentum within a short time. The company is an active GST Suvidha Provider (GSP), who routes invoice filings to the central system. Of the 70 shortlisted GSPs only about 25 are active, with even big names such as Tally remaining inactive. This has reduced the dog-eat-dog competition, a bit in this space. A GSP offers a gateway to taxpayers to the GST Network by getting access to the APIs for uploading of invoices and filing returns.

The stock of Energy Development Company Ltd (Rs.15.57), the Amar Singh - Jaya Prada venture is likely to move up as the date of AGM is nearing. Energy Development Company Ltd informed earlier that its Board of Directors,  at its meeting held on June 07, 2018, inter alia, have recommended payment of Dividend @ 5% on the paid-up share capital of the Company (Rs. 0.50 per equity shares of Rs. 10/ - each) for the financial year 2017-18 (subject to approval of members at the ensuing Annual General Meeting). The dividend, if approved, shall be paid within 30 days from the date of the Annual General Meeting. Moreover, with the crude oil on the boil, the shares of Energy Related companies are likely to move up in the near future. Stay Invested!!

The stock of once a Construction Giant, Gammon India Ltd (Rs.1.90) has been suspended from BSE. The share of Gammon Infrastructure Ltd has closed at Rs.1.26 in the BSE. In such circumstances what to do? Join the Premium Service or trade through my recommended brokerage house for suggestions and help on this....Also, I have shared fresh inputs on TV Vision Ltd (Rs.5.40) with Premium Members, tomorrow I will speak with the sources in Rasoya Proteins Ltd (Re.0.16) and Monnet Ispat Ltd (Rs.11.24)..

I will recommend an IT Counter next week, which could give good returns over a period. Those who want to take the 1st mover advantage by the knowing the name of the scrip in advance, they should join my information service. Mail me at: suman2005s@rediffmail.com. Only genuine mails please -- fake ones will be blacklisted. 

Moreover, I am thinking of starting a lifetime service (30 years) at a price tag of Rs.60,000 (Sixty Thousand) for delivery based recommendations and Rs.1 (one) lakh for delivery plus F&O. This is one time investment....for 30 long years or you can say LIFETIME. Because, after that my body may not permit me to do the exercise and hence a cap of 30 years.

But for that I need at least 100 subscribers to start with. If you can form a team and come to me.....I will can give you service for life-time just with a meager sum of Rs.60,000 to Rs.1 lakh. 

Now, if you calculate Rs.18,000 per year (which is my current subscription fee) for 30 years for sending information, then it comes to around Rs.5,40,000 or around Rs.5.4 lakhs. Think about it....if you are interested then please do let me know. One time investment and then life time service.