Winning Strokes

Yesterday, the BSE Sensex closed at 56,319.019 up 497 points (+0.89%), while the Nifty settled at 16,770.85 up 156.65 points (+0.94%). I'm expecting the Nifty to gradually trend towards 16400/15870 level in the coming days, before moving up. Photo: Times Now.

Finance Minister Nirmala Sitharaman will present her third budget and will be assisted by a team of advisers and secretaries with a mission to boost economy in these outbreak times. Sitharaman has promised that the upcoming Budget will be of a kind never seen before, one where fiscal concerns will be kept aside and there could be record public spending, with an objective of boosting demand and creating jobs. So, next year we can look forward to Sensex touching 70,000.

#The stock of Shriram EPC Ltd (Rs.7.45) touched a high of Rs.7.65 in the NSE before closing near the day's high. 

The Dubai-based family office Mark AB Capital will take over Shriram EPC, an engineering procurement and construction contractor and part of the financial services conglomerate Shriram group by picking up 26% stake for Rs.350 crore. Hence, this Dubai based firm is the New Promoter of Shriram EPC. Now we know from our previous experience that FERA Companies command high valuations. So, we need to look at the counter of Shriram EPC Ltd (Rs.7.50), from a new angle. Considering the brand of its new promoter, Bullishness associated with the construction sector and the upcoming Infrastructure focused budget we can look for long term targets of Rs.37/45/72/167/291. Buy on Market Declines. This is a sure shot bargain, as the company will not face working capital hassles and will now operate on international scale (foreign contracts).

The stock of Den Networks Ltd (Rs.40.25) is from the Mukhesh Ambani group, and has high safety associated with it. They also obtained a non-exclusive license from the DoT to set up and operate internet services all over India.  

Some people are of the opinion that, 5G Services could bring about the end of cable TV, whereas others think it won’t have much of an impact. 

However, the Den Networks Ltd is a hybrid player and therefore could excel in  this space or could take over the business of pure cable TV operators, by dishing out to customers, internet streaming platforms. I mean, even if 5G services next year pose some challenges to Cable TV sector, Den Networks will be able to match any drop in revenue through high speed video streaming.

The improvements to wireless broadband technology through the advent of 5G services can threaten cable TV companies, and hence the investors were shying away, but Den Networks has an excellent story. Up until now, while 4G LTE delivers excellent speeds, its capabilities are nothing compared to what a cable connection can give you. This is going to change, with India going for 5G services tentatively in the middle of next year. Many companies routinely offer connections of 200 Mbps or more, with Gigabit Internet now also available in most places. This means that 5G can replace cable Internet in some places, which would be detrimental to PURE cable TV business model and hence could help hybrid players like Den Networks to take over their businesses (if any). 

To give you a little better idea of what’s happening in the US on cable TV industry, here are some stats: 

• The 2 largest cable companies, Comcast and Charter, are trading at record high prices. Charter stock prices are up more than 150% in the past 5 years. (Sources 1, 2).
• In 2020, Charter added more than 2.1 million home Internet customers, up from 1.3 million the year before. (Source 3).
• Year-over-year growth for Comcast’s Internet service is above 5%, the highest rate in more than 6 years. (Source 4).
• In 2020 alone, more than 6 million people cut the cord, choosing to drop cable TV services in favor of streaming-only options. (Source 5)

Over and above, Den Networks, is debt free, comes from a big brand, entertains 13 million+ households in India across 13 key states and 433 cities and has the Largest Subscriber Base amongst all cable players in India. 

Besides, after revolutionising the internet adoption in India with Jio’s free internet data plans, Mukhesh Ambani has drawn up the plan for a second wave of the digital revolution through JioFiber broadband services.

On September 5, 2019, Reliance Jio launched a fiber-to-the-home (FTTH) internet broadband service JioFiber, also known as Jio GigaFiber, in over 1,600 cities in India. This is expected to get more aggressive, post 5G Launch in India. 

JioFiber is offering a speed starting from 100 Mbps and go all the way up to 1 Gbps. These plans come with access to free domestic voice calling, conferencing and international calling; TV video calling and conferencing, entertainment OTT apps, gaming, home networking, community management services, device security, AR/VR experience and more.

• High-Speed Internet
• Voice Assistant
• Free Voice And Video Calling
• 4K Set-Top Box
• Music And Video Streaming
• Home Networking And Smart Homes
• Jio Security
• Smart TV Experiences
• JioGate Community Management
• Online Multiplayer Gaming
• Virtual Reality Experiences

Those having a long term vision should have the scrip of Den Networks Ltd (Rs.40.25) in their kitties.

In another development, the case of Future Retail Ltd (Rs.54.35) is now all set to go in its favour of the master Indian strategist, Kishore Biyani, as he is all set to gift Biriyani...😀😀to his shareholders. The Economic Times writes, Future may use CCI order to get Amazon cases quashed. 

I have mentioned many times, in this blog that it will be very difficult, if not impossible to beat Mukhesh Ambani in his home turf. And the new developments, just indicate that.....We can now look forward for targets of Rs.100+, in the coming days. Accumulate on declines.

You can continue accumulating the shares of Bombay Rayon and Fashions Ltd (Rs.7.15) for targets of Rs.27/35. The company has opened new stores in Bangalore. Photo: Bombay Rayon and Fashions Ltd's new store in Bangalore.

Another, I want to ask the regulators: on what basis a stock is put in T - group (BL in NSE)? I see Stocks like Sintex Plastics Ltd (Rs.13.45), Trident Ltd, 3i Infotech, Urja Global Ltd (Rs.14.90), Nagarjuna Fertilizers Ltd (Rs.11.35), HCC (Rs.15.60), etc which are either hitting continuous Upper Circuit for weeks or there are too much speculation, have still not been shifted in Trade - to - Trade segment (T - group), while it is not the case for many others, Reliance Capital (Rs.13.65), Reliance Infra Ltd (Rs.95.15), A2Z Infra Engineering Ltd (Rs.7.70), etc. 

If the stock exchanges do this of regulation, then obviously the shareholders will question the intent of the regulators. I'll only say - we either have a very bad regulation policy or the persons who are entrusted with the implementation of the surveillance policies/mechanism are probably doing the work with a jaundiced vision. 

My request to the regulators of stock Exchanges: Kindly, take note of my concerns and take necessary steps to correct the aberration.

The shares of Suzlon Energy Ltd (Rs.7.45) has been hitting the buyer since the last couple of days. We can look forward for targets above Rs.10, as the government of India is all set to implement the Renewal Energy targets of 2022. The upcoming budget is likely to give incentives for the Renewal Energy sector. Accumulate in Market Declines. 

Buy the shares of A2Z Infra Engineering Ltd near the CMP of Rs.7.55, for short term targets of Rs.12/15.

According to Simply Wall, A2Z Infra Engineering Ltd (Rs.7.55) had a debt of Rs.3.63 billion as of 31 March, 2021, down from Rs.4.79 billion. However, it has a cash reserve of Rs.2.13 billion, hence its net debt is a meagre figure of Rs.1.50 billion -- this is very less, for the companies in its sector of performance.

Tit - bits

#On Monday (24 February, 2020), the Indian markets are likely to open gap down and the Nifty

is expected to test 1200/11800 zone. The imports from China,  might get costly due to coronavirus epidemic. This will help the companies, who don't use Chinese raw materials to make finished good. However, we could see margin shrinkage in electronic items like TV,  unless their price is raised. But when there is a slowdown in demand, the rise in product prices may actually hit the sales. 

Moreover,  it seems there is a structural breakdown of Indian economy as there is a rise of unemployment along with a raging inflation. Therefore, titillating it with more and more stimulus could lead to hyper inflation.
It is pertinent to mention here that, while,  the US economy is booming, our current dispensation in Delhi, has creatively destroyed, through erroneous policy making. Narendra Modi went to the US at the end of last year ("Howdy Modi") and bluffed the people there, that everything is fine in India. 

#Those who have entered the share of HCC Ltd (Rs.9.30), should accumulate on declines. 

HCC Ltd's Q3FY20 profit came at Rs.234 Cr. It also announced plan to reduce debt by Rs.2,100 crone. 

#The shares of Wockhardt Ltd (Rs.357.60), may test Rs.312/325 before taking a fresh upmove. Wockhardt Ltd has sold a part of its branded biz to Dr Reddy’. The ₹1,850 cr sale deal includes its manufacturing facility at Baddi in Himachal Pradesh. 

#Meanwhile,  there is news in a section of

international media that according to scientists ships and cars can now be powered by ammonia in fertiliser rather than diesel within the next few decades.
In a bid to tackle climate change and C02 emissions, the key ingredient in manure can be harnessed to burn in a ships engine or get mixed with a fuel cell to produce energy in a car. This is a positive news for the fertilizer sector.
Moreover, the ammonia and sulohur prices are expected to fall due to coronavirus outbreak in China. Ammonia is a key raw material for the manufacture of Urea.
According to the industry, the assessed requirement of urea in the rabi season is 16.2 million tonnes, 5.05 million tonnes for DAP, 1.73 million tonnes for MOP and 5.2 million tonne for NPK.
The Muriate of potash (MoP) which is entirely imported have however seen an increase in prices by 4% . ICRA expects these prices to sustain for the most part of rabi season unless the rupee depreciates fuctuates too much. 
The demand for fertilisers will peak in the coming weeks, with farmers continue planting of wheat, mustard, barley, masur and other crops.

#Buy the shares of Sun Pharmaceuticals Ltd at around Rs.404.95, for short term targets of Rs.431/436. SL: Rs.396.

I feel it would not be an exaggeration to mention that most of the manufacturing units related to Sun Pharma's supply chain are quite far away from the epicentre of coronavirus epidemic and hence its API will have bare minimum negative effect; due to the ongoing havoc in China. 

Tit - bits

#The Nifty closed at 11,992.50 down 53.30 points

Photo: Hans India

(-0.44%) taking cues from weak global markets and downgrade of India by the Moody's.

Shares across the globe spooked after iPhone maker Apple Inc said it was unlikely to meet its sales projections because of the coronavirus epidemic in China.
The Nifty would continue to get support around 11800/11900 levels and face resistance around 12100/12150 region. However, with UA economy doing well, the domestic indices would continue to rise due to inflation; even if the India economy is weak. So,  if you are holding the share of a right company at the right price, good ROI is guaranteed over a period. Tomorrow, Indian markets (Nifty) will open gap up of at least 20 points. So,  use intraday dips to buy good shares. 

#Keep away from PSU Bank Stocks, as several media report suggest them having a significant exposures to the telecom operators. Acordoreports, bankers fear a possible collapse of Vodafone Idea Ltd (Rs.3, down 11.76%) will increase bad loans and spark a rerun of the crisis that gripped the banking sector a few years ago. If you are having any PSU Bank shares, kindly exit, as of now. 

#The shares of Yes Bank Ltd fell to Rs.33.65 and closed at Rs.34.80 down 6.33%. I have been suggesting you exit the share since Rs.37/39. 

There are doubts whether, it will be able to manage funds, in tough economic conditions in India. I think it will test new 52 - week low. Stay away. 

#The shares of  National Fertilisers Ltd (Rs.23.75) made fresh 52 week low today,  due to too much pessimism created by media, post cutting of fertilizer subsidy. Also, the NDA government should have paid the pending subsidy dues to the fertilizer companies before embarking on cutting the subsidy, though marginally -- I feel this move in the budget will have minimal negative effect on the bottomlines of fertilizer companies, however, when media creates undue sensation, my voice (or logic) gets drowned.
I had earlier requested the SEBI to take a close look at the counter, to find out if there is cartel out there to hack the scrip down.
Anyway listen, like people need food to survive, similarly we need fertilisers (both bio and chemical, apart Agri chemicals) to meet the demands of ever growing population.
Wherever Indians live, they will have to buy food for their survival. Bio fertilizers, alone are not sufficient to give a push to agricultural outputs. We need all types of fertilizers for this purpose, Nirmala Sitaraman has only spoken about the same in her budget speech -- if the market gives out wrong vibes from a right cause,  then it is unfortunate. Can human beings survive without Food?
Take human example: will you like daal - roti everyday? What you will do in such cases? You may skip meal, isn't? Hence, over use of urea in soils without the adequate use of other fertilisers is having a toll on the productivity of land. If farmers are not getting good margin from their produce, from where they will get more and more cash to buy costly fertilisers (PK - types)?
Too much urea subsidy is screwing the concept of the balanced use of fertilizers. Therefore, urea decontrol is an immediate priority and the NDA government is working on it.
Moreover, National Fertilisers Ltd (Rs.23.75) is a mini Ratna PSU, having excellent book value, P/E ratio, EPS, ROC,  etc. It is also a disinvestment candidate and is into Chemical and Bio fertilizers, apart from having a presence in Agri chemicals. You must have seen many analysts have turned BULLISH on the Chemical sector, post coronavirus epidemic in China. Not only that, it has tied up with a North East based company to sell "Kissan" brand urea. 
Besides, Ramagundam Plant is tentative to start production by 31st March, 2020.
Moreover, after bumper "Kariff" season,  the analysts are expecting a rise in fertilizer demand in Ravi season too. India imports NKP fertilisers -- so demand outpaces supply. I therefore, feel that soon fertiliser scrips (especially those which are also into Agri chemicals) will be RERATED in the backdrop of rising Food  Inflation and Chemical Story emerging out of China, which in turn will  elevate the income of farmers. Annual food inflation around 7% is actually desirable for farmers to stay in business. Retail food inflation climbed up from 3% in August 2019 to 10% in November and rose further to 14% in December 2019, the highest in six years. Much of this hike was driven by a year-on-year rise in prices of vegetables (60%), pulses (15%) and animal proteins (9%), according to a report published in Mint, 21 January, 2020.
Hence, every dip is a buying opportunity, for targets above Rs.50, in NFL. Another interesting point: today,  it closed near the day's high with a whooping delivery volume of 57.31%; giving the hint of a screeching buy. This is an investment grade scrip and hence there is no need to keep SL.
Also,  according to BSE website: National Fertilizers reported Flat Financial performance in Dec-19. The score has improved to -3 from -18 in the last 3 months.
Technicals:

• As per Relative Strength Index, National Fertilizers Ltd. is in over sold range with a value of 9.77.
• As per Relative Strength Index (Smooth), National Fertilizers Ltd. is in over sold range with a value of 27.14.
• As per Williams %R , National Fertilizers Ltd. is in over sold range with a value of -94.03.
• As per CCI , National Fertilizers Ltd. is in over sold range with a value of -100.35.
• As per Slow Stochastic, National Fertilizers Ltd. is in over sold range with a value of 4.41.
• As per Fast Stochastic , National Fertilizers Ltd. is in over sold range with a value of 5.97.

Source: Topstockresearch.com

#Accumulate the shares of Hindustan Construction Company Ltd (HCC Ltd) near Rs.8.40/8.70 for short term targets of Rs.11.50/11.60. The company came out with superb set of numbers for Q3FY20. Also,  the company is looking to reduce debts by substantial amounts. CMP: Rs.8.95.

Winning Strokes: Think Different

Photo: Live Mint

Today the scrip of P C Jewellers Ltd (Rs.119.90) closed below Rs.121, after the company cancelled the buyback offer. However, such announcement of back of shares by management does not mean much  to the shareholders except some form of moral booster. Moreover, it is often seen that the required company does not stick to the promise of full amount buyback mentioned earlier. I would therefore, congratulate the management of the company and ask them to deploy the funds kept aside for buyback for the establishment of new retail outlets which will create more value for the shareholders. You can take fresh positions only if it gives a closing above Rs.122 with good volumes -- till then stay away from the counter; as I fear that it might test Rs.95 going forward.

Jewelers in India are having a tough time since the last few years. Recently, the industry came under a cloud with two companies under investigation for an alleged banking fraud of $2 billion. This comes even as the World Gold Council estimates that physical demand for jewelry slid 12% in the first three months of 2018. 

The current "Wicked and Machiavellian" dispensation in Delhi has done everything to destroy the once vibrant "Private Sector", as the banks are now saddled with bad loans of around 10 lakh crore. Systematically, almost every sector has been made to bleed, in the name of Tax Reforms [Read: Tax Terrorism], Removal of Incentives to some sectors in the name of Nation Development/Lowering of FD, etc etc. While the larger players could rise their head above water in such tiring circumstances, the biggest hit was SME sector. I  am reminded of the crisis in Greece, where the citizens cheered as the government thought to control the price of commodities -- later the same people were up in arms against the government when it failed to pay international loans. 
Some Indians have hallucinations that heaving taxing the industry and giving as much allowances [tax cuts] to the individual tax payers is the only panacea to all the crisis; while the reality is that if you throw a stone up, it will invariably come down. But then, I feel a 1st time MP tuned PM by FLUKE and a Lawyer turned FM, who had wafer thin finance background before joining the Finance Ministry, does not have the necessary acumen to analyse, the causes of crisis during the earlier regime and act accordingly. The only thing the current administration in Delhi has done during the last 4 years is to harass poor people [Do you remember how poor, old and disabled had to stand in long queues to get their legitimate money from ATMs] and businessmen.
In 2004, the then Government introduced Security Transaction Tax (STT), where all securities listed in an exchange (excluding commodity and currency) were subject to this tax, during the purchase or sale. This was levied instead of imposing a LTCG tax. With the introduction of LTCG, investors are now paying both the STT and LTCG thus incurring double taxes. 
Moreover, sensing discontent among the large section  of Indians, this government is trying to woo the Public Sector employees by giving them high pay hikes [7th Pay Commission], by looting the "Private Sector Enterprises" and they will pay for that in the next elections in 2019. Do you know the salary and Perks of an Army Colonel or a Superintendent of Police ora Ticket Booking Clerk in Indian Railways Vis-a-Vis their qualifications? How much does a clerk or a Supervisor deployed by a Private Security Agency get in the Private Sector even in Metros like Delhi, Kolkata or Bombay? Kindly Google!! Also check the current recruitments in Indian Army.

Energy Development Company Ltd, an Amar Singh & Jaya Prada outfit, today closed flat at around Rs.15.55 in the NSE. As the crude starts to soar up, the valuation of renewable energy companies are likely to improve. Moreover, the company is trading below its book value of Rs.23.49 and has a dividend yield of 3.22% at the CMP. The prudent investors should buy the shares of this company and keep holding till October, '18. Theoretically, if RIL (Rs.1099.80 up 1.61%) is rising, then the shares of Energy Development Company Ltd should also rise. 

Today among the sugar stocks mentioned in my last post, Sri Renuka Sugars Ltd closed at Rs.12.3 just a tad below the 52-week low price of Rs.12.05. Last month there was media briefing that Singapore-based Wilmar Sugar Holdings (WSH) had acquired an additional 19.77% stake in in Mumbai based, Shree Renuka Sugars through an open offer which was launched a few months back. As per the shareholding pattern, WSH had 38.57% stake in Shree Renuka Sugars as on March 2018. After the completion of the open offer, WSH's stake has now gone up to 58.34% in the same. This is one of the most safest and high pedigree sugar counters available today and hence keep holding till December, '18, for at least 50% return from the CMP.

One of my earlier recommended counters Southern Online Bio Technologies Ltd, where I do not think any of my current clients have holdings (as I have asked them to book profits and exit, around a couple of years back) today closed at Rs.1.47. I get lot of mails asking what to do with the scrip. If you are heavily invested in the shares of the company and have no clue on the current happenings in it and want information or suggestions, then you need to pay Rs.10000, for 6 months and Rs.18000 for 12 months. Similar is the case with many of my earlier recommended counters like [where I do not have any holding except in KBCL and Genera Agri, but some of my old clients who are no longer subscribed to my Premium Service, might have]: 

Rohhit Ferro Tech Ltd (Rs.2), IVRCL Ltd (Rs.1.90), HCC (Rs.11.35), Gammon Infrastructure Projects Ld (Rs.1.34), MBL Infrastructure Ltd (Rs.18.25), Reliance Communications Ltd (Rs.13), PVP Ventures Ltd (Rs.3.94), Genera Agri Corp Ltd (Rs.9.10), Unitech Ltd (Rs.4.15), Rasoya Proteins Ltd (Re.0.16), Mandhana Industries Ltd (Rs.5.27), Jayee Infratech Ltd (Rs.5.96), Lanco Infratech Ltd (Rs.0.85), Kohinoor Broadcasting Corporation Ltd (KBCL, CMP: Re.0.21), etc, etc. 

For getting source based additional information on stocks, you need to pay a few bucks; as nothing comes for free. If  you are a small investor, then some discounts can be given. Now, kindly, don't shoot me mails, asking for FREE TIPS or INFORMATION on the same. 

Important

Photo: Live Mint

1. Those who have entered Prajay Engineers Ltd can either exitbat Rs.10.70 with minimum loss or keep holding with a SL of Rs.10.40.

2. The Prime Minister, Narendra Modi is likely to take a review of the stalled infrastructure projects. So many infrastructure stocks like MBL Infrastructure Ltd (Rs.35.05), HCC Ltd (Rs.42.45) are doing well. You can buy Gammon India Ltd at Rs.9.50, T: Rs.15. The stock looks good above Rs.9.45. The 1st resistance comes at Rs.10.60, followed by Rs.11.70 and Rs.12.90. In 2013 creditors approved a Rs.13,500 crore CDR package for Gammon. Gammon India in March said it has got members' nod to invest or buy up to 20% stake in Gammon Infrastructure Projects from wholly-owned arm Gammon Power Ltd. The company said it also got member's nod to authorise Gammon Power Limited, a wholly owned subsidiary to divest/sell/dispose off further equity shares of Gammon Infrastructure Projects Limited. Gammon India also announced that the National Company Law Tribunal, Mumbai Bench ('NCLT') has at the hearing held on 30 March 2017, approved the Scheme of Arrangement between Gammon India ('GIL' or 'the Transferor Company') and Transrail Lighting ('TLL' or 'the Transferee Company') and their respective shareholders and creditors ('the Scheme') for transfer of the Company's T&D Undertaking.

3. There are too many uncertainties involved in the share of RCom Ltd (Rs.19.45). I would therefore suggest you to book loss and again enter either above Rs.22.50 or Rs.30.

Punj Lloyd Ltd: Buy

CMP: Rs.21.95

Last quarter saw some acceleration in execution in their projects. The management is positive on gradually improving macro environment and an enabling policy framework of the present government,  which is likely to improve the performance of the sector.  

A key development at the end of last year was the Cabinet decision on payment of arbitration awards by government agencies to EPC companies. This, the company, believe is a significant positive for the industry and will go a long way towards reducing debt.

Thus, implementation of the measures taken by the government like release of 75% of arbitral award to construction companies will help improve prospects over the medium term. Some construction companies have already received this payment in their escrow accounts against bank guarantees.

According to a recent  (rating agency) ICRA Report: the order book of construction companies is expected to improve with the government awarding sizable infrastructure projects over the last two years and many in the pipeline,

"The Government of Indias focus on infrastructure sector, particularly roads, railways, and urban infrastructure segments, is evident from the increased budgetary allocation to these sectors as well as the slew of measures taken to revive the sector," ICRA said in a statement.

Of all the infrastructure segments, the Railways have the highest planned capital outlay with Rs.8.56 trillion over the five-year period of 2015-2019. To keep up with this plan, the annual capital outlays for FY2016 and FY2017 was increased significantly.

The two ongoing dedicated freight corridors (eastern and western) are worth over Rs. 0.81 trillion. The other major capex planned is towards station modernisation and redevelopment and the high speed rail corridor (HSR) or bullet train project.

"These are likely to offer sizeable opportunities for the construction sector," the statement said.

"The budgeted capital outlay for the Railways is expected to increase from Rs 1.2 trillion in FY2017 to Rs 1.4 trillion in FY2018. However, given the 5-year plan this still would require to be ramped-up significantly in the remaining years. "The merger of the Railway budget with the central budget will provide an additional leeway for an increased outlay. While a major part of the outlay is expected to be towards the ongoing projects, sizeable newer projects are also expected to be awarded, providing construction opportunities, particularly for large players," said K Ravichandran, Senior Vice-President and Group-Head, Corporate Ratings, ICRA.

Moreover, valued at $180 million per annum in the 1970s, Indo-UAE trade is today around $50 billion, making the UAE India's third largest trading partner for the year 2015-16, after China and the US --- among the several private and public sector, Indian companies, working in the UAE, Punj Lloyd Ltd also figures in the list. 

Besides, a section of the market believes that Punj Ltd like HCC Ltd (Rs.41.80) is a BJP company; the former paying Rs.1 Crore in 2009 elections to the BJP. 

The promoters holding in the company stood at 36.14% while Institutions and Non-Institutions held 9.08% and 54.79% respectively. The total public holding stands at 63.86%. The stock is currently trading below its 50, 100, 150 nd 200 D SMA.

Therefore, buy the shares of Punj Lloyd Ltd around R.21.75-21.95 for short targets of Rs.27-28. The company is coming up with results on 11 February, 2017, where I am expecting a turnaround.

Note: The scrip was recommended to the Premium Group members today and it was displayed in the Premium Blog: http://sumanspeakspremiumservices.blogspot.com.

Govt offers fin relief to realty cos

[Editor: This is expected to be a sort of boon for the established real estate players like DLF Ltd (Rs.149.90), Unitech Ltd (Rs.5.25), Parsvnath Developers Ltd (Rs.16.80), HCC Ltd (Rs.35.55), etc. who are reeling under high debt burden; with a squeeze on cash flow. I continue to maintain a buy on Unitech Ltd with short term targets of Rs.9-12] 

Sep 1, 2016:  The government on Wednesday announced a package to ease the financial stress on construction companies, including a possible loan restructuring package for the real estate sector — a move that could prompt property developers to resume work on stalled projects.

"The department of financial services and the RBI will try and prepare a policy on how to deal with those companies which have got a lot of stressed assets in the real estate sector. We hope that a series of these decisions would pump in a lot of liquidity in the sector, activate a lot of real estate and infrastructure projects which have been stranded for some time and support the entire process of dispute resolution in relation to construction and real estate," finance minister Arun Jaitley told reporters after the Union cabinet cleared the package.

As reported by TOI on August 26, the package prepared by the NITI Aayog seeks to ensure release of 75% of funds locked up in projects where an arbitration award has been made in favour of a construction company. In case where the award has been challenged, agencies such as National Highways Authority of India would transfer 75% of the award amount into an escrow account against margin free bank guarantee. This amount can be used to repay loans and generate liquidity besides easing the burden on companies.

"HCC will immediately be able to reduce its debt by almost half as a result and will be able to reduce it even further within 12 to 24 months. With this, HCC will be able to participate in country's infrastructure development in a much bigger way," said HCC chairman and managing director Ajit Gulabchand. The company which is under financial pressure has around Rs.3,000 crore caught in disputes with government agencies.

There is gain for individuals too as some of the real estate developers have delayed delivery of projects citing lack of funds.

"If the banks extend the repayment schedule, developers will use the cash flow in completing the projects instead of repaying the loan. This will help the sector and the economy," said ATS Infrastructure CMD Getamber Anand, who is also heads real estate lobby group Credai.

In case of construction companies the government has sought to speed up the arbitration process, Jaitley said. Public sector companies and the government would seek the consent of contractors to transfer cases initiated under the earlier law to the amended act.

And, to avoid a build-up of cases in future, the government also wants its arms to set up Conciliation Committees to ensure speedy disposal disputes.

Source: The Times of India 

DO YOU KNOW?

Photo: Property Guru 

The NDA government on last Wednesday announced a clutch of measures that is dramatically expected to increase the liquidity of construction firms over the next few weeks -- let banks recover their outstanding dues and give a fillip to the real estate and infrastructure sectors by reactivating several stalled projects.

Prime Minister Narendra Modi-led Cabinet took several measures to revive the real estate and construction sector. Resurrecting life into stagnant sectors, the Cabinet gave nod to more liquidity in construction projects and faster redressal of disputes.

Having recently simplified the arbitration law to make dispute resolution easier and speedier, it has now opened a new facility under which even while an arbitral award is being challenged by a public body, 75% of the amount in question will be released by it to the contractor against a bank guarantee. Also, existing disputes between public bodies and contractors, it said, could be shifted to the new simplified Arbitration Act. Although direct beneficiaries of the move are construction giants like HCC, Gammon India, Gammon Infra and IVRCL, the gains from improved liquidity in construction would be felt across infrastructure industries.

Given contingent liabilities — that correspond to the amounts locked in arbitration/courts — of major public bodies and PSUs are seen to be over Rs.70,000 crore, with National Highways Authority of India (Rs.22,500 crore), DMRC (Rs.11,600 crore) and NHPC (Rs.9,000 crore) topping the list, the provision for release of funds to contractors would mean that some Rs.53,000 crore will be at their disposal.

These monies will be used by the contractors to discharge the liabilities towards banks and financial institutions (which, in turn will improve credit flows) and also to kick-start stalled projects.

However, analysts pointed out that in many sectors like roads, railways, ports and inland waterways, where government agencies themselves have turned major investors given the stagnation in private investment, the release of disputed funds to the contractors could impact their liquidity. But they added that given major government investors like the railways, NHAI and port trusts (apart from budget outlays, they can raise extra-budgetary resources) do not face a funds crunch, in the aggregate, Wednesday’s decisions would spur investments.

Finance minister Arun Jaitley said after a Cabinet meeting that in new contracts, there will be a provision for a conciliation board consisting of independent domain expert who will enter into contractual negotiations if there are changes in commercial circumstances around the project. Besides, item rate contracts would be replaced by turnkey contracts and a model draft turnkey contract would be circulated. The minister added that department of financial services and the Reserve Bank of India will soon prepare a policy to “deal with those companies which have lot of stressed assets in the construction sector”.

Gross value added (GVA) in the construction sector — which accounts for 8% of the country’s gross domestic product (GDP) and employs 4 crore people — has been growing at rates far lower than the overall GVA growth for the last few quarters. Apart from liquidity problems, which partly resulted from lenders’ wariness, tepid demand and overcapacity created in the real estate sector stunted the sector’s expansion. (GVA — construction grew 3.9% in 2016-16 against overall GVA growth of 7.2% and GDP expansion of 7.6% in the year; the sector’s growth was a measly 1.5% in April-June this year, compared with overall GVA growth of expansion of 7.3%.)

“Over 85% of the claims raised against government bodies are still pending, of which 11% is pending with the government agencies, 64% with arbitrators and 8.5% with courts. The average settlement time for claims is estimated at more than seven years. A majority of arbitration awards have gone against the government agencies,” said a government statement.

In the case of NHAI, of a total of 347 arbitral awards, 38 went in favour of the authority and 309 in favour of the contractor/concessionaire. Of the arbitral awards in NHAI cases, more than 90% were unanimous awards in which all arbitrators including the one appointed by NHAI had concurred in the decision. In many cases, arbitration awards are contested in the courts, even though a large majority of arbitration decisions are upheld by the courts.

A turnkey contract, which allows transfer of an entire project to the client after completion at pre-decided rates, is more handy for large contractors unlike the rate contract that requires contractors to quote a rate for each item of work. These measures will pump in liquidity as well as activate the stranded projects, the Finance Minister, Mr.Arun Jaitley said. 

Source: The Financial Express and other media inputs..

Winning Strokes: Think Different

Photo: Concarto.com

(i) Those who are holding the shares of JSW Energy Ltd (Rs.77) should exit, if the time horizon is for the short term, as the scrip is not going anywhere and could fall to Rs.74-75 once Rs.76 is broken, which is looks more probably than the scrip moving up.

(ii) Take Fresh Positions in Reliance Communications Ltd (Rs.49.20) on the twin news: (a) the announcement of the merger with Aircel could be announced soon (ii) Launch of Reliance Jio is positive for Reliance Communications, while it is negative for Idea Cellular Ltd (Rs.84) and Bharti Airtel Ltd (Rs.309).

(iii) Accumulate the shares of Unitech Ltd (Rs.5.25) in the dips before the AGM on 12th September, 2016, when the annual report could be presented. Also, the news that the shares of Hindustan Construction Ltd (HCC Ltd) has hit the Upper Circuits today at Rs.33, is positive for the company. 

(iv) Those who are holding the shares of Reliance Defence Ltd (Rs.64) can increase their holdings as the launch of Reliance Jio Ltd could trigger a price rise in the shares of Anil Ambani group companies. Already, the shares of Reliance Infrastructure Ltd (Rs.597) and Reliance Capital Ltd (Rs.530) are doing well.

(v) The shares of Shrenuj and Co Ltd (Rs.2.15) are trading very LOW as compared to their intrinsic prices. The market cap of the company at the CMP of Rs.2.15 is only Rs.42.05 crore,  which ridiculous and points how rumours can massacre to the shareholders' wealth. In the same sector, you can also accumulate Gitanjali Gems Ltd at Rs.45.50, as the festive season kicks in from this month. 

(vi) The shares of IVRCL Ltd (Rs.5.20) today touched Rs.5.65, the scrip was recommended some days back around Rs.4.80. 

Today's Recommendations

# Unitech Ltd (Rs.4.80) and Hindustan Construction Company Ltd (Rs.20.50), like many other real estate companies could be benefited by the shortage of homes in major cities, as almost every CEO planning a big infrastructure project which requires large tracks of land, is saying that the land acquisition Bill, passed by Parliament last month, will either make projects unviable or expensive (for large infrastructure or real estate projects) or in other words the Bill is not conducive for investments. This might generate demand for the land and also property pushing the price up. 

Therefore, accumulate the stock Unitech Ltd at the CMP of Rs.4.80, for a price target of Rs.7.5 and HCC Ltd for a price target of Rs.27-29. 

# Lanco Infrastructure Ltd is on a turnaround path. Therefore, we could see upward movement in the scrip in the short term. Buy at Rs.4.95, for a target of Rs.7-8, in the short term. 

# Reliance Telecommunications Ltd  (Rs.47.80), could benefit, as

the NDA government has announced trading and sharing norms for telecom spectrum. Such norms would allow telecom players to transfer their idle spectrum to other service providers who are facing a spectrum crunch, or pool spectrum to bring together their fragmented spectrum holdings, resulting in better spectral efficiency. Buy the stock at the CMP of Rs.47.80 for short term targets of Rs.57-61.

Photo: Business Today

Now according to a report published in Business Today, July 3, Edition, in the telecom sector, the scenario is changing rapidly. Technology - 3G, 4G, WiMAX - is changing fast, and smaller operators are not in a position to invest adequately to upgrade their networks. On the other hand, the strong network holdings and large investments by big telcos have made it difficult for smaller players to survive on their own. As a result, large operators like Bharti Airtel, Vodafone and Idea Cellular are growing their subscriber base at a significant pace, even as most of the smaller ones see their share of the pie shrinking. The impending launch of Reliance Jio's 4G services, expected to be a big draw for consumers, has further queered the pitch for small telecom companies. This will reduce competitions for big players like Reliance Communications Ltd, too. 

Reliance Communications (RCom), is planning a merger with two smaller telcos - Sistema Shyam TeleServices (SSTL) that operates MTS brand, and Aircel. RCom's and MTS's market shares have been dipping for two years whereas Aircel's is showing marginal uptrend in subscriber numbers. If the merger works out, the new entity will have a subscriber base almost on par with the No. 2, Vodafone.

Analysts believe the merger will give a new lease of life to the three operators. "They would have been completely marginalised in the next two to three years," says an analyst. There are other challenges, including the fact that all three entities have significant debt on their books. As on December 31, 2015, RCom had Rs 40,479 crore of debt while Aircel, about Rs,18,000 crore. An analyst points out that Aircel's Rs.3,500-crore deal (for 2,300-MHz spectrum) with Bharti Airtel will help reduce Aircel's debt. The new entity is expected to have debt of around Rs.28,000 crore - with both RCom and Aircel contributing equally - provided RCom successfully reduces its debt by selling tower and optic fibre businesses.

Experts say that RCom's inability to make sufficient investments in its networks can partly be resolved with its impending tie-up with Reliance Jio, which has already spent Rs 1.5 lakh crore in buying spectrum and building an ecosystem of services around 4G. It is expected to use RCom's spectrum as a fallback network.

Today's Recommendations

1. Unitech Ltd (Rs.4.80) and Hindustan Construction Company Ltd (Rs.20.50), like many other real estate companies could be benefited by the shortage of homes in major cities, as almost every CEO planning a big infrastructure project which requires large tracks of land, is saying that the land acquisition Bill, passed by Parliament last month, will either make projects unviable or expensive for large infrastructure or real estate projects or in other words the Bill is not conducive for investments. This might generate demand for the land and also property pushing the price up. 

Therefore, accumulate the stock Unitech Ltd at the CMP of Rs.4.80, for a price target of Rs.7.5 and HCC Ltd for a price target of Rs.27-29. 

2. Lanco Infrastructure Ltd is on a turnaround path. Therefore, we could see upward movement in the scrip in the short term. Buy at Rs.4.95, for a target of Rs.7-8, in the short term. 

WINNING STROKES: THINK DIFFERENT

Please Click on the Photo to Expand

Yesterdays' recommendation, HCC Ltd today shot up to the Rs.29.20, intra-day before closing at Rs.27.70. The scrip reached both the targets today. Join the Premium Group and make most from the stock market.............moreover, if you are having around Rs.50 lakhs to Rs.1 Crore, for investing in the equity market, do let me know....we can strike a deal with 50:50 profit sharing ratio. The markets are on a run and this is the time to make money.....you have the money, I have the expertise---I believe both can gel and give good returns (over a period). 
Today, a buy call was initiated in Vedanta Ltd, for the Mobile Group at Rs.103 and for the Web Group at Rs.104. The scrip today made an intra-day high of Rs.105.95 before closing at Rs.105.05. What is the target of the scrip? Anyway, recently, there were some media reports that Vedanta Ltd is expecting its iron ore exports from the state of Goa to be much higher than its permitted mining capacity of 5.5 million tonnes in the fiscal year to March, as it bids for ore in government-run auctions. The natural resources conglomerate said in a statement yesterday, that its iron ore division shipped its first cargo of iron ore, after resuming mining operations in August in Goa. Iron ore mining was banned in the state of Goa since late 2012 amid allegations of rampant illegal mining and environment damage. The ban was eventually lifted but with an upper limit of 20 million tonnes late last year with an aim to preserve the resource for future generations. It is pertinent to mention here that, the brokerage house Emkay Global Financial Services,  in its research report dated June 15, 2015 gave a buy rating on the scrip, with a target price of Rs 235.

Meanwhile, the company has declared, 30/10/2015 as the cut-off date for the Interim Dividend. The 52 Week High (adjusted) and Low (adjusted) for the share are Rs.263.55 and Rs.76.70, respectively. 

Proteins Ltd, today closed at the upper circuits at Re.0.26. The scrip is going to give good returns to the investors over a period. 

WINNING STROKES: THINK DIFFERENT

Today, a buy call was given in the shares of Hindustan Construction Company Ltd (HCC Ltd) to the Mobile Premium Group members at Rs.23.30 and to the Web Premium Group members at Rs.23.70. The scrip touched a high of Rs.25.20, intra-before closing at Rs.24.80.  The scrip is likely to cross Rs.30, within a short time. 

Premium Members were today, asked to book profit in Gitanjali Gems Ltd, after it was seen that the scrip was finding difficulty to cross Rs.42. The stock touched an intra-day low of Rs.39, before closing at Rs.39.25.

Rasoya Proteins Ltd today closed at Re.0.26. I will soon speak with the sources and update you about the latest developments. However, the CMD is trying all options to open the main plant, at the earliest. 

My recommended Reliance Communications Ltd at Rs.72, today touched Rs.82.70, before closing at Rs.80.50. Now what to do with this scrip....? These days, unless you are an expert in the equity market, it will be very difficult to make money, even if you get a buy call at the right time because, it is more difficult to sell a scrip than to buy. Therefore, join the MOBILE PREMIUM GROUP, to make maximum from the equity markets.

MSCI Small Cap Index adds 51 securities and deletes 8

Mumbai | May 13, 2015: MSCI Inc on Tuesday announced the results of the May 2015 Semi‐Annual Index Review for the MSCI Equity Indexes – including the MSCI Global Standard, MSCI Global Small Cap and MSCI Micro Cap Indexes. 

All changes will be implemented as of the close of May 29, 2015. MSCI Small Cap Index will add Aarti Industries, Ajanta Pharma, Alstom T&D, Asahi India, Blue Dart, Bombay Burmah, Capital First, Century Ply, Cera, Crisil, Crompton, Dalmia Bharat, Dhanuka Agri, Edelweiss, Eveready, Future Retail, HCC, Hitachi, Indoco, Ingersoll, Isgec, Kalpataru, Kansai, Kitex Garments, KRBL, L&T Fin, Motilal Oswal, Marico Kaya, Muthoot, Orient Cem, Persistent, PTC India, Ratnamani Metals, Reliance Infra, Repco Home, Rolta, Schneider, Sharda Crop, Shipla Medicare, Suven Life, Tata Comm, Tata Elxsi, Tata Investment, Texmaco Rail, Timken, Union Bank, Viniti Organics, Wabco, Welspun Ind and Zensar. 

Bajaj Finance, Balrampur, Bharat Forge, Britannia, DCM Shriram, PMC Fincorp, Prestige Estates and Tilak Finance will be deleted from MSCI Small Cap Index. 

There will be 400 additions to and 292 deletions from the MSCI Global Small Cap Indexes. There will be 391 additions to and 261 deletions from the MSCI Global Investable Market Indexes. For MSCI Global Value and Growth Indexes, the largest additions or style changes from growth to value will be Glaxosmithkline (United Kingdom), Novartis (Switzerland) and Kinder Morgan P (USA). 

Courtesy: Indiainfoline

India eases FDI rules for construction sector

Construction stocks gain on relaxed FDI norms in sector Shares of Hindustan Construction Company (HCC) jumped 8.22 percent while NBCC gained 4.11 percent. Even NCC and IVRCL were up over 6 percent.

Dec 03, 2014: Aimed at attracting foreign investment into the realty sector, the government Wednesday relaxed rules for FDI in the construction sector by reducing minimum built-up area as well as capital requirement and easing the exit norms. 

The news sent all major construction company stocks buzzing with Hindustan Construction Company   (HCC) jumping 8.22 percent and NBCC   gaining 4.11 percent. Even NCC   and IVRCL were up over 6 percent. 

The revised norms relating to construction development sector, which were earlier approved by the Cabinet, have been notified the Department of Industrial Policy and Promotion (DIPP). India allows 100 percent FDI in the sector through automatic route. 

In view of depleting FDI inflow in construction and real estate sector in last couple of years, the government has reduced the minimum floor area to 20,000 sq mt from the earlier 50,000 sq mt. It also brought down the minimum capital requirement to USD 5 million from USD 10 million. 

In case of development of serviced plots, the condition of minimum land of 10 hectares has been completely removed, said the Consolidated FDI Policy Circular 2014. Although 100 percent foreign direct investment was allowed in townships, housing and built-up infrastructure and construction developments since 2005, the government had imposed certain conditions. 

Government expects the new measures would result in enhanced inflows into the construction development sector. The sector is also likely to attract investments in new areas and encourage development of plots for serviced housing given the shortage of land in and around urban agglomerations as well as the high cost of land. 

The measures are also likely to result in creation of much needed low-cost affordable housing in the country and development of smart cities. The revised policy is in line with the Budget 2014-15 announcement.

Courtesy: Moneycontrol.com (except the headline). 

WINNING STROKES: THINK DIFFERENT

Today as expected the Mid-cap Index was on Fire, as compared to the Nifty. On 1 December, 2014, the Business Standard wrote: 

With the investment limit for foreign institutional investors (FIIs) in many large-cap stocks getting exhausted, these are turning their focus to names in the mid-cap and, selectively, the small-cap space. In the past month, five companies — CEAT, Just Dial, Edelweiss Financial, Bajaj Corp and Pennar Industries — got Reserve Bank of India (RBI) approval to raise their FII-investment limits. Power Grid Corporation has been added to the FII-ban list, restricting foreign participation.

While, the Nifty is expected to meander between 8500 and 8600, main action would be concentrated in the mid and small cap space. Today Nifty closed at 8537.45, marginally up by 12.95 points. It touched an intra-day high of 8546.95 and low of  8508.35. 

Yesterdays' recommendation Pipavav Defence and Offshore Eng Ltd at around Rs.35-35.50, today moved up and touched Rs.36.80 in the BSE and Rs.36.90, in the NSE, almost near the Upper Circuits at Rs.37 (BSE). The scrip closed at Rs.36.25 (Up 2.84%) in the BSE and  Rs.36.35 (up 3.27%) in the NSE. I again reiterate, Pipavav Defence and Offshore Engineering Ltd is India's biggest private sector naval shipbuilder. Hence, you should be holding the shares of the company in your portfolio---this is a must, especially at this price.Meanwhile,  Capital Market Wrote today: 

A large number of defence equipment have been / are being manufactured in India using Transfer of Technology (ToT). This information was given by Defence Minister Manohar Parrikar in a written reply to Ambika Soni and Dr. T Subbarami Reddy in Rajya Sabha on Tuesday, 2 December 2014.

ARSS Infrastructure Projects Ltd hit the upper circuits at Rs.40.75. After yesterday's, positive comments from the RBI governor, many construction and banking stocks moved up during the day and closed in the green--Punj Lloyd Ltd (Rs.37.55, up 1.90%), HCC (Rs.32.55, up 7.07%), Allahabad Bank Ltd (Rs.130.15, up 2.20%==>after yesterday's spectacular rally), Indian Bank Ltd (Rs.208, up 6.23%), et. Also, Shares of companies whose fortunes are linked to orders from Indian Railways edged higher on renewed buying. ARSS Infrastructure Projects Ltd is engaged in construction activities in India. It undertakes construction of railway infrastructure, roads, highways, bridges and irrigation projects. It started as a construction company in the field of railway infrastructure development, mainly in the State of Orissa and subsequently expanded its business activities in the zonal jurisdictions of East Coast Railway. It  has developed expertise in railway construction projects, which includes earthworks, major and minor bridges, supply of ballast, sleepers, laying of sleepers and rails, linking of tracks etc. Over the years it has diversified its field of activities into other construction segments such as: development and construction of roads, highways, bridges, irrigation projects, EPC activities for railways.

 Meanwhile Capital Market wrote today: 

Commenting on the India Services PMI survey, Pranjul Bhandari, Chief India Economist at HSBC said: "Service sector activity grew in November, as new business rose for the seventh month running. Despite the uptick in order flows, business sentiment deteriorated, reminding us that continued policy action that addresses investor concerns is needed to sustain growth momentum. Meanwhile, prices dipped on falling commodity prices and increased competition". The Ministry of Finance after trading hours yesterday, 2 December 2014, said that it is encouraging that the Reserve Bank of India (RBI) has taken note of the structural change in the outlook for inflation. Responding to the Monetary Policy Statement issued by the RBI, the finance ministry said that the government looks forward to the RBI supporting the revival of growth and employment. In the weeks ahead, the government and RBI will work towards a monetary policy framework that will help institutionalize the gains achieved on the inflation front, so as to reduce inflationary expectations and further support the revival of investment and growth, the finance ministry said in a statement.  

HINDALCO Industries Ltd today touched the 2nd target of Rs.172, as the scrip hit Rs.173.20, intra-day. The stock if  you remember was recommended last week around Rs.157. 

Allied  Digital Services Ltd today moved to Rs.20.45, before closing at Rs.20.40, up 2%. According to my close sources, the company is expected to post an EPS of Rs.3, in FY15 and Rs.5 in FY16. The book value of the shares of the company is Rs.149.40, while the market cap at the CMP of Rs.20.40, is ONLY, Rs.94.22 Cr against H1FY15 sales of Rs.133.55 Cr. For the full year FY15, it is expected to clock a revenue of around Rs.250 Cr, which is around, 3-times the current market cap of the company. This is a turnaround story and hence accumulate it on all declines. 

Today, my strongly recommended Jaiprakash Power Ventures Ltd moved to Rs.13.50, throwing MUD on the FACES of those who were advising a sell on the counter, without doing adequate research. The scrip which closed today at Rs.13.31, will in all probability touch Rs.18, within this month. The Economic Times, wrote today: 

Barely weeks after buying out two hydro power projects of JP Power for Rs 9700 crores, Sajjan Jindal is closing in to strike yet another large deal with Manoj Gaur's power company and this time its for its coal-based power assets. Sources with direct knowledge share that JSW EnergyBSE -1.29 % is close to acquiring Bina and Nigrie thermal power units of JP Power. The deal is likely to value the assets around Rs 12,000 crores. 

Moreover, when the stocks like SKM Egg Products Ltd (CMP: Rs.105.25; Book Value: Rs.17.11) or MIC Electronics Ltd (Face Value: Rs.2 and with losses in the last two quarters. The net loss in the September, 2014 quarter was Rs.4.85 Cr), can hit upper circuits, why do you bother so much to enter this A-group counter? Do you think the management of Jaipee Group is so stupid that it will allow it to go bust? Unfortunately, in this market, the stocks which are manipulated to the hilt are moving up and up, while others which are genuinely having stories are not going anywhere--probably this is related to negative media publicity. It seems the Indian Financial Media, need some "Tonic" from the J P Group to give it a good coverage. You cannot believe the Indian Media companies, many of whom sell the advertisements, as NEWS.
Reliance Capital Ltd recommended around Rs.500, today touched Rs.545.40, before closing at Rs.540.55. Today, the Shares of insurance companies edge higher on the hopes of passage of Insurance Laws (Amendment) Bill in the ongoing winter session of Parliament, which seeks to up FDI in the sector from 26% to 49%.
The Parliament last week allowed for an extension to a select committee to table its report on the Insurance Laws (Amendment) Bill, which seeks to up FDI in the sector from 26% to 49%. Meanwhile, yesterday, 2 December 2014, the bill got a further shot in the arm after the lead opposition party Congress, which had first initiated the proposal when it was in power, said it would support the legislation even as other parties such as Trinamool Congress (TMC) opposed it. The ruling Bharatiya Janata Party (BJP) does not have a majority in the upper Raj Sabhya house and will need support from opposition to pass the bill through.

Updates on some of my recommendations

1. Granules India Ltd, was recommended around Rs.110-112.50.

The scrip touched an all time high around Rs.940.55 on 22/09/2014 (on my birthday). 

2. Multi Commodity Exchange of India Ltd (MCX Ltd) was recommended around Rs.255-270. The scrip made a high of high of Rs.895, on 21/07/2014.

3. B F Utilities Ltd was recommended around Rs.129-130. The scrip made a high of Rs.817.95 on 22/07/2014.

4. Mannapuram Finance Ltd was recommended around Rs.15.50--17.70. The scrip made a high of Rs.31.60  on 19/09/2014.

5. Opto Circuits Ltd was recommended around Rs.25.50-26. The scrip made a high of Rs.44.50 on 22/05/2014.

6. HCC Ltd was recommended around Rs.12.70-12.80. The scrip made a  high of Rs.49 on  01/07/2014.

7. P C Jeweler Ltd was recommended below Rs.88. The scrip made a high of Rs.278 on 23/09/2014.

8. Sarda Energy and Minerals Ltd was recommended around Rs.107.60. The scrip made a high of Rs.402.60 on 21/08/2014.

9. A2Z Maintenance and Engineering Services Ltd was recommended around Rs.11.45. The scrip made a high of Rs.36.40 on 25/07/2014.

10. Prakash Industries Ltd was recommended around Rs.49-50. The scrip made a high of Rs.123 on 21/07/2014.

These are some of scrips which gave good returns to the investors over a period, apart from others like IVRCL Ltd, Entegra Ltd, SBTL, Gitanjali Gems Ltd, IRB Infrastructure Ltd, Ahmednagar Forgings Ltd, etc. 

Today, while Pipavav Defence Ltd (Rs.39.15) and Resurgere Mines and Minerals Ltd (Rs.1.65) hit the buyer freezes; Gitanjali Gems Ltd (Rs.63.15) also closed above some crucial levels. 

Pipavav Defence and Offshore Engineering Company last year announced a new order for offshore vessels from a European client. The order was worth Rs.595 crore with an option to supply two more specialised vessels valued at Rs.1200 crore. The global market for specialised offshore vessels stands at US$10 billion. The company, with its well diversified order book among the defence, commercial and offshore segments, intend to focus on the defence and offshore vessel segment. The defence segment holds around 50% of the order book followed by the commercial segment and offshore segment. New orders in the offshore segment coupled with repairs and maintenance orders augur well for the company as it reduces exposure to the commercial segment. Pipavav Defence and Offshore Engineering Company spanning over 861 acres of land with two dry docking facilities of 662 m x 65 m (Dry Dock-1) and 750 m x 60 m (Dry Dock-2 under construction) is one of the largest “modular” shipbuilding facilities in India. The shipyard is capable of accommodating 400,000 dwt capacity ships along with construction and repair of a wide range of vessels starting from coastal and naval vessels together with repair and fabrication of offshore platforms and rigs. It also has a dedicated offshore yard with 175 m x 16.89 m quay consisting of both launching and loading platform together with installation of bollard and mooring rings.