WINNING STROKES: THINK DIFFERENT

[Editor: What is interesting to note is the greatest circus going probably unnoticed--when FIIs sell, DIIs buy and vice versa. It seems there is some synchronized movement going on between these Financial Institutions. Today,  i.e on 5-Feb-2014 FIIs net sold equities worth Rs.576.2 Cr while DIIs bought  Rs.815.23, which means there is a net inflow in the markets to the tune of Rs.239.03 Cr. Moreover, the government of India will soon relax the import norms for gold, because, apart from creating the life of the those associated with this industry worse day by day, it has now given rise to some new nuisances like increased smuggling of gold and rise in import of gold jewelry]

As expected the market recovered at the end of the day. Before that Premium Members were sent the following note (excerpts): 'The Nifty seems to have found a final support around 5950 -5970 ranges. Chances of the continuance of this rally cannot be ruled out. Concentrate on IT stocks, as the outlook turned bullish for Indians'. Also today, Allied Digital Services Ltd (Rs.13.05) was recommended a buy along with Uflex Ltd  at Rs.71-72. Allied Digital Ltd will continue hitting some more buyer freezes in the coming days, as the company is presently doing some  large projects. Its overseas subsidiary, has at last started to perform. Allied Digital Services Ltd is a well known company in the IT Infrastructure Management and Technical Support Services Outsourcing Company, with an impeccable track record for designing, developing, deploying and delivering end-to-end IT Infrastructure services with an objective to provide end to end IT Solutions, outcomes of which have always resulted into a positive change in the organization. It has over more than two decades of experience in enterprise IT Infrastructure, Management and Implementation and consulting on complex IT Solutions for different Business Verticals. The Company provides credible, high class and customer oriented services and solutions to its clients, actively participate to fulfill the needs and preferences of the customers, their requirements in a dedicated manner.

HCC recommended yesterday at around Rs.12.70-12.80, today touched Rs.13.15 intra-day before closing flat at Rs.12.85. The investors should accumulate the scrip on all declines and  hold the scrip till the Q4FY14, results are declared tentatively in April, 2014. 

Entegra Ltd hit the buyer freeze today, before closing at Rs.3.54, up 1.43%. This is a sure shot scrip to make up for your 100% losses in the markets. Just invest in the scrip and keep holding---I am sure your 100% losses will be made up by this single scrip. Buy it in every decline; don't look at the index on the past results, to take your decision.

All the Gold jewelry stocks, viz, Shree Ganesh Jewellery House (I) Ltd (Rs.25.40), P C Jeweller Ltd (Rs.75.80) and Gitanjali Gems Ltd (Rs.62.55), closed in the green today, indicating that the operators are waiting for the final signal from the government of India to go for the ultimate kill. Meanwhile, the news agency reported today, that, "As gold supplies are squeezed, India's jewellery imports soared". This will put further pressure on the FMO and the Commerce Ministry to relax the gold import restrictions. 

Join my Paid Service or trade through my recommended brokerage houses (if the minimum portfolio is Rs.1 lakhs, your get Paid Service for Free) to be ahead of others. Tomorrow, I am going to recommend a Stock Option to the Premium Group members, which will be disclosed to the Free Blog in the evening. You can judge  yourself, whether the Premium members made profit or losses. In this market when even the experts are finding difficulty to make money, please come out of the illusion that any novice can do that, simply by following some TIP-STARS...!! When you become ill you need to go to a good doctor (of course not a quack).  Also, it is true that all the patients who go to reputed doctors, do not become fully well; there are some who also die. But, by and large most benefits from the association with the doctor. In the stock market too there is no replacement (substitute) of experts, who have spent a large chunk of their time and energy in studying the complex market dynamics. There could be chances when an expert may fail initially but at the end of the end he / she will do much better than 80% of the market participants. If any new comer thinks that he will come here and conquer the equity market in no time, then he / she is probably living in a FOOLS PARADISE. So, share your profits with experts and make money, hassle free. 

Budget 2007-08: Construction:

India is on the verge of witnessing a sustained investment phase in infrastructure build up. With a slew of announcements in housing, road, port and airport development, we are seemingly on a path of sustained higher economic growth on the back of improvement in infrastructure construction in the country. The government, in its mid-term appraisal of the tenth five-year plan (2002-07), has revised upwards its infrastructure investment target from Rs 10,890 bn to around 11,100 bn (US$ 250 bn) over the next five years. From a policy perspective, there has been a growing consensus that a private-public partnership is required to remove difficulties concerning the development of infrastructure in the country. A substantial chunk of the abovementioned investment target is likely to come from the private sector.

Budget Measures: ##Allocation towards Bharat Nirman increased by 32% to Rs 246 bn ##Increase in provision for National Highway Development Programme (NHDP) by 7.2% to Rs 107 bn ##Enhanced allocation for Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to Rs 499 bn, an increase of 9% ##Corpus of Rural Infrastructure Development Fund-XIII (RIDF) for FY08 raised to Rs 120 bn ##Separate window for rural roads under RIDF-XIII to be continued in FY08 with a corpus of Rs 40 bn ##Utilisation of foreign reserves towards infrastructure development ##Tax on dividend distributed by companies to be hiked from 12.5% to 15% ##Additional education cess of 1% to fund secondary and higher education Budget Impact: ##Since government spending on infrastructure is the most important growth driver for construction companies, the proposed increase in allocation will translate into awarding of more projects ##Leveraging of foreign exchange reserves for infrastructure development to result in increased availability of funds with the government and thereby result in faster infrastructure growth for the country ##Higher education cess and dividend distribution tax to impact net profits and retained earnings respectively Sector Outlook: Since government spending on infrastructure is the most important growth driver for construction companies, the proposed increase in allocation will translate into awarding of more projects. Further, leveraging of foreign exchange reserves for infrastructure development will result in increased availability of funds with the government and thereby result in faster infrastructure growth for the country. Despite huge order backlogs, timely execution of orders by construction companies remains our major concern. Rising raw material prices are also likely to be a tough nut to crack for these companies.

Company Impact: Positive for construction companies like IVRCL, HCC and Gammon who are engaged in the development of roads, irrigation and water supply projects Higher allocation to sanitation schemes likely to benefit companies like Hindustan Sanitaryware, Parryware and Kajaria Ceramics Key Positives: Government spending on infrastructure: - Government spending on infrastructure is the most important demand driver for the construction industry. Since adequate infrastructure is essential for sustained economic growth, construction activities have gained significant importance over the past few years. Though infrastructure development will be across sectors, the key drivers would be roads, water supply & sanitation and irrigation. Infrastructure construction investments, with a share of 25% in total construction investments are expected to grow at a CAGR of 9% over the next three years (Source: CRIS INFAC). Growth in real estate construction: - Real estate investments account for about 60% of the total construction investments. Demand-supply gap for residential housing, favourable demographics, rising affordability levels, availability of financing options as well as fiscal benefits available on availing of home loan are the key drivers supporting the demand for residential construction. In addition to this, demand for office space from IT/BPO segment is expected to continue due to emergence of India as a preferred outsourcing destination. Also, boom in organized retail is expected to result in huge demand for real estate construction. Industrial construction to witness strong growth: - With India Inc. on major expansion drive, the demand for industrial construction is expected to remain strong over the next few years. According to CRIS INFAC, industrial construction (accounts for 10% of the total construction investments) is expected to grow at a CAGR of 33%, mainly propelled by the investments in oil & gas and metals. Key Negatives: Increasing property prices and rising home-loan rates: - Demand for residential properties tend to be highly price-sensitive. Though the underlying demand for housing is huge, increasing property prices will result in postponement of purchasing decisions. We believe that the growth in housing demand has been stymied by high property prices. Declining home loan rates has been one of the key demand drivers for the residential property in the last 4-5 years. However, home loan rates, akin to the general interest rates have been steadily climbing in the past 12-15 months. Increase in loan rates will further dampen the demand for real estate construction. Execution risks: - Increased investments in infrastructure and huge capacity addition plans by manufacturing companies have resulted in huge order books for construction companies. We believe that the people problem faced by the construction industry will make it difficult for them to execute large projects on a timely basis. Payment issues: - Construction companies involved in infrastructure development activities have to rely on government agencies for payments in case of cash contracts and annuity based projects. Delay in payments for projects can have adverse impact on profitability of companies. [From Internet] THIS BUDGET HAS ALSO MADE INCREASED ALLOCATION FOR THE DEFENCE SECTOR AND HENCE THE COMPANIES IN THE DEFENCE SECTOR WILL GET BENEFITED LIKE, BEL, AREVA TD, ROLTA LTD, PREMIER EXPLOSIVES LTD ETC. SO INCREASE UR HOLDING IN THESE COUNTERS......Do not panic as the hell has not fallen on Indian and emerging markets.... More in the following postings..... Best wishes, Suman Mukherjee India.

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. 

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

WINNING STROKES:THINK DIFFERENT:

PM quit over nuclear deal? Hoax!!!

Laloo, Sharad Pawer, Amar Singh turn, the Saviors---The Non-Terminators:

General Mukherjee "eggs on" the Stubbon/Regressive Marxists, to sign the deal:

Nuclear Deal is coming folks, just buy the scrips in the defence related sectors like HCC, Premier Explosives Ltd, Solar Explosives Ltd, Astra Microwave, BEL, BHEL etc.

New Delhi: Caught between the UPA government's political compulsions to clinch the nucleal deal and the Left's vehement opposition to it, Prime Minister Manmohan Singh is reported to have told his party high command that he would rather quit than succumb to pressurues to abandon the deal.A saving grace for the Prime Minister is that UPA’s coalition partners came out in strong defence of the government on the India-US nuclear deal on Thursday, even as they expressed apprehensions — evident also in the Congress — that a bitter parting of ways with the Left parties on the issue could weaken the secular challenge to “communal forces” before and after the elections.Mukherjee is believed to have rejected the Left’s suggestion that while going to atomic watchdog IAEA, the government should also publicly say that it would not sign the 123 agreement.

A day after the UPA-Left meeting to sort out differences over the deal was deferred till June 25, the ruling coalition allies held hectic consultations among themselves while also keeping in touch with the communists in a bid to find a way out of the imbroglio.External Affairs Minister Pranab Mukherjee’s 13 Talkatora residence became a hub of activity.Among the late-night callers was CPM’s Sitaram Yechury. Sources said the meeting failed to break the stalemate. Mukherjee is believed to have rejected the Left’s suggestion that while going to atomic watchdog IAEA, the government should also publicly say that it would not sign the 123 agreement. At the time of going to press, Mukherjee was engaged in discussions with Prime Minister Manmohan Singh.

At various points in time during the day, NCP chief Sharad Pawar, RJD’s Lalu Yadav and LJP’s Ram Vilas Paswan also visited Mukherjee to discuss the latest turn of events that threatens to create a situation where the ruling party has to assess the political implications — including early Lok Sabha polls — of pushing for the deal without the Left on board.

Lalu said the nuclear deal was necessary for the country’s development and that it would be unfortunate if it fell through. The railways minister — who met Yechury on Thursday — told HT that he had impressed on the Left leaders that such an opportunity (of signing the deal) would not come India’s way again. He felt the government was unlikely to fall but added, “We are all preparing for elections, anyway.”Pressed about the possible timing of the elections, Lalu said, "It would not be held in the rainy season." In an indication of how the nuclear issue would play out on the ground, Lalu linked the deal with bread and butter issues: "Governments come and go, but assets must be created for the next generation." He said instead of bickering, leaders must sit together and resolve issues with a cool head, adding: "We need both (the deal and the Left)".

Pawar also wanted the Left view on the nuclear question to be taken into consideration. "We are with the Congress on this issue, but committed to address the concerns of other supporters," Pawar told HT.NCP spokesman DP Tripathi said it "was difficult but not impossible" to operationalise the deal by working out a consensus of all UPA supporters including the Left. PMK leader Ambumani Ramdoss, whose party is now out of the DMK-led front in Tamil Nadu, said his party was "entirely with the Congress" on the nuclear deal. The DMK has already extended unconditional support to the deal.With the allies coming out in support of the Congress and the government even while emphasizing the need for keeping the Left on board, the ruling party, as part of the consultative process, could call a meeting of the Congress Working Committee and of the UPA coordination panel.A year ago, allies had rallied behind Prime Minister Manmohan Singh on the issue in the same manner. This occasion, the UPA constituents -- as also a section within the Congress -- remain plagued with fears that an acrimonious split with the Left might help consolidate the communal forces, while damaging the long-term interests of the secular grouping in an era of coalition politics.

Theories in circulation include one suggesting that SP might bail out the government if the Left withdraws support. SP leader Rashid Masood said his party "would support whatever cause was good for the country".

Market Mantra

The market traded range bound with negative bias on last Friday.The Nifty tried to close above   6800 mark, but ultimately the settlement took place at 6776 with a net loss of 20  points. 

The Nifty is trading near its life time high, with the optimism of forming a NDA led government and also due to improved fundamentals of Indian Economy. Though the Bulls are in total  control of the things, how the Nifty is witnessing selling above 6800 level. The investors / traders are suggested to concentrate on the small and mid cap space; as most of the large caps are  now fairly valued. 

Resistance: 6800 / 6820 

Support: 6745 / 6700

My recommended PVP Ventures Ltd (BSE Code: 517556) at Rs.5.70 on last Thursday to the Premium Group Members, today hit the 20% upper circuits in the BSE. Join the Paid Service or my recommended brokerage House/s to stay ahead of others. 

Please Click On the Photo to Expand

Today's Call: 
(i) Buy Vijay Shanti Builders Ltd (BSE Code: 523724) at Rs.12, T-Rs.17, SL--Rs.9. The company is doing lot of projects in and around Chennai. The scrip is yet to take part in the rally.
(ii) Speculative Buy Core Education Ltd & Technologies Ltd (BSE Code: 512199) at Rs.13.50, T-Rs.17, SL--Rs.12.4.
Shree Ganesh Jewelry House (I) Ltd today touched Rs.36. The scrip will slowly moving towards Rs.41-42 in the  coming days. 
Jai Balaji Industries Ltd today touched Rs.14 and is  now trading at around Rs.13.9. The scrip could hit another buyer freeze, because the market cap of the company is too low as compared to the enterprise value of its steel plants and its mines. 
HCC Ltd (Rs.19) today touched Rs.19.50, the scrip will be moving towards Rs.21-22 in the coming days. It has reached both my initial targets. In the same way, Unitech Ltd (Rs.1.70) will be moving towards Rs.23-24 in the coming days. 

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.

Market Mantra

Marg Ltd hit another buyer freeze today at Rs.16.25. The scrip has been hitting buyer freeze since the time it was recommended to the Premium Group Members. 

Today, Opto Circuits Ltd (Rs.33.20) was recommended in the morning trade to the Premium Memberes; the scrip touched Rs.34.40, intra-day. There are lot of optimism in the counter, before May 6, 2014 board meeting. Opto Circuits (India) earlier informed that a meeting of the board of directors of the company will be held on May 6, 2014 to discuss FCCB/GDR/Preferential Allotment/Private Placement/issue of Convertible Debentures offering and any other form of raising funds for OPTO Circuits (India) and/or for its Indian/Overseas subsidiaries. The company said on February 20, 2014 its Powerheart G5 automated external defibrillator received market clearance from the US drug regulator. Opto Circuits (India) is a vertically integrated multinational medical technology Group that specializes in primary, acute and critical care products for the global markets. The scrip is above its 200DEMA and 200DSMA. The Golden Cross has already taken place and therefore, both fundamentally and Chartically, all the factors look positive for the company. The scrip is all set to touch Rs.45-50, in the next few trading sessions.

Jai Balaji Industries Ltd hit another buyer freeze today, to touch Rs.17.55. The scrip was recommended around Rs.13-14 ranges, with a price target of Rs.29-32. 
Today HCC Ltd touched the 3rd target of Rs.21. The scrip was recommended in February, 2014 at Rs.12.70-12.80, with a 1st target of Rs.15, which was achived long back.
Insecticides India Ltd is consolidating around Rs.277-282, to chart out the next move. The scrip will reach Rs.320, within a few days.
Yesterday, a buy call was given in 29May_Nifty_Futures at 6730 for  a target of 6750. Today 29May_Nifty_Futures touched 6778.55, giving some money on the table to the Premium Group Members. On 30 April, 2014 too FIIs were net buyers to the tune of Rs.454.48 Cr and surprisingly DIIs were also  net buyers of Rs.6.46 Cr of Indian Securities--so the positive optimism continues in the Indian Bourses. Join the Paid Service or my recommended brokerage house/s before 15 May, 2014, as the subscription for the same is going to be increased to Rs.10, 000 per year from the existing Rs.7000 per year.

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.

WINNING STROKES: THINK DIFFERENT

Shree Ganesh Jewellery House (I) Ltd (BSE Code: 533180), recommended today to the Premium Members and also to those who are trading through my recommended BROKERAGE  HOUSE, hit the buyer freeze.  The stock is moving towards Rs.31-32 in the coming days. Today it got locked in the Upper Circuits at Rs.25.65. According to the media reports nearly 81% of the company’s revenue was derived from exports in 2012-13 and 98 per cent of its raw materials were imported, creating a hedge. Since exports exceeded imports, a weakening rupee tended to benefit the company’s margins. Meanwhile, Shree Ganesh Jewellery House (I) Ltd has approached State Bank of India (SBI) for referring its debt to the corporate debt restructuring (CDR) cell. SBI is the lead bank in a consortium of its lenders. SBI had a meeting with the other members of the consortium last week to discuss Shree Ganesh’s proposal. Under CDR, banks typically increase the repayment period of loans to stressed borrowers, offer a moratorium and reduce lending rates. As on March 31, 2013, the company’s long-term borrowings were at Rs.100.4 crore and short-term debt at Rs.496.84 crore. The interest coverage ratio in 2012-13 was 2.26..The book value of the shares of the company is a whooping, Rs.226.03. Therefore, wait for some more UPPER CIRCUITS in the counter, in the coming days. 

Please Click on the Chart to Expand

Essar Ports Ltd recommended yesterday to the Paid Group members, at around Rs.56.70, today touched Rs.60.80, in the NSE before settling at Rs.59.50. The scrip is expected to cross Rs.100, in the next few trading sessions. On a standalone basis the company came out with good set of numbers for the Q2FY14. Not only that it is taking measures to increase the value of the shareholders. Today the scrip closed above both its 21D and 50D, SMAs and EMAs. Also, the other Essar Group companies, like Essar Oil Ltd (Rs.53.55) and Essar Shipping Ltd (Rs.19.90) did well today. 

Future Retail Ltd which was recommended only some days back at around Rs.67, today touched Rs.76.30 (crossed the 2nd target of Rs.76), before closing at Rs.73.50. 

My recommended Suzlon Ltd today got locked in the Upper Circuits Ltd at Rs.11.03 before closing at Rs.10.94 in the BSE. I have positions in the company in my personal account and is bullish on the scrip.

Tulip Telecom Ltd today hit the Upper Circuits Ltd at Rs.6.11 before cooling down at Rs.6.08. The Book value of the sharers of the company is Rs.45.34 (Forty five rupees and thirty four paise). It is true that the company is facing some financial crunches, however, even if there is any liquidation of the company (say the worst case scenario), then also the present SHAREHOLDERS stands to gain more than 7 (Seven) times of the CMP of Rs.6.08. As, mentioned earlier, I and my family members are holding a stake in the company. 

Country Club Ltd which was recommended only a few days back, here in this blog, today touched Rs.8.73 before cooling down at Rs.8.41. The company stands to gain from the depreciation of the INR against the USD, which is expected to boost both the normal and medical tourism of foreigners (as it makes travel to India cheaper). The company has huge asset base and it is pity how the scrip is trading so low. Even if one invests at the current price of around Rs.8.41, there is a chance to get double returns in the next few months if the market momentum continues. 
IVRCL Ltd (Rs.16.79) today crossed the 1st target of Rs.17.50, and profit booking was suggested in the counter. In the same way, my recommended, HCC today crossed its first target of Rs.15.50, as it touched Rs.16, intra-day. 

Join my Premium Service or my recommended Brokerage Houses to take maximum advantage from this rally. Those who have lost money in earlier cases, can also COVER all their losses just by going through few CORRECT TRADES.  The rally in the small and mid caps have started and it is the best time to enter the equity markets. To join the service/s send me a mail at: 

(i) suman2005s@rediffmail.com

(ii) sumanm2007s@gmail.com.

Market Mantra

SBTL is into the Production of Bio-diesel

Southern Online Bio Tech Ltd (SBTL)  HIT another BUYER FREEZE, after the company declared some favourable news which is as follows: "Southern Online Bio Technologies Ltd has informed BSE that the Company’s Biodiesel unit situated at Visakhapatnam, Andhra Pradesh is in a position to start production of Biodiesel upon receipt of raw materials. The delay in implementing the production so far is due to delay in getting the required working capital sanction from the bankers, now the bankers have extended their support by sanctioning of additional working capital for 50% capacity, utilization. Various internationally well reputed Biodiesel buyers are in touch with Company for the purchase of Biodiesel which is going to produce at above quoted unit. Besides this the Company’s first Biodiesel unit, which is situated at Samsthan Narayanpur Village, Nalgonda District is running at 85% capacity utilization for the last few years and it is backed up by well reputed customers from various segments". This company is very much investor friendly.
Buy Sintex Industries Ltd at Rs.57--57.50, T--Rs.62-65, SL---Rs.53.  When a repo rate cut is almost certain now, we can focus on the real estate and construction counters. My belief is more riveted by the fact that Voltas Ltd is doing fine today is now trading at Rs.85.70 (Recommended at Rs.83, some days back). 
Buy Central Bank Ltd at Rs.73, T--Rs.77-80, SL--Rs.71. There were some media speculations that, SEBI might have exempted the government from making an open offer for shares of the bank following preferential allotment of shares, which looks positive to me.
Steel Authority of India Ltd (SAIL) is on fire today. May be because of the fact that the government of India will do its disinvestment earlier and a price might have been fixed. SAIL if you can remember is trading below its book value of Rs.96.38, apart from its huge huge Capex going on at present. CMP: Rs.71.70.
Kohinoor Broadcasting Corporation Ltd hits another buyer freeze in the opening trade. I hope most of you have averaged the scrip, so that you can make a killing when the scrip appreciates.  CMP: Re.0.31.
Buy all the construction counters: Buy IVRCL Ltd (BSE Code: 530773) at Rs.25.70, T--Rs.32, SL--Rs.22. There is some positive news for all the construction counters. This is what www.rediff.com writes: Infrastructure is a badly beaten up sector, as you rightly pointed out. Power and road are two of the largest infrastructure segments in India, and recent reports point out that bank loans towards infrastructure projects have died down, resulting in most projects being in limbo now. Awarding of new projects is also at their five year low and many awarded projects have not even taken off, stuck in policy paralysis, high interest costs, bank unwilling to lend and other such issues. However, there are some companies which would outlast this negative scenario. IVRCL is one of the strongest in this segment and would outlast the current policy paralysis to grow as a stronger and better player. HCC is another firm which was deeply hit due to its innovative Lavasa Hill-city project getting stuck in environmental issues which were part politically motivated. Regime changes could positively affect this specific scrip as well, and firm plans to go for Lavasa IPO once overall situation improves.
Punj Llyod is going strong and has not reported losses in past five quarters, unlike most of other infrastructure firms. Its top-line is also showing an improving trend which could result in better bottom-line profits in next few quarters. Markets worry only about bottom-line profits, so the firm could see a re-rating in next few quarters, if the results improve from here. Firm has also paid dividends in 2012 and has not missed dividend payout in past 7 years. So, it is one of the strongest players in this segment on a overall basis. So, some of these stocks can be accumulated at these levels for 12-18 months of time horizon and would provide good returns once the overall situation improves for Infrastructure sector". CLICK HERE. 
Tulip Telecom Ltd is just witnessing some profit booking but I do not think there is any reason to worry when the CDR Mechanism is on the cards. It is now official: Banks are likely to approve an Rs.18 bln loan restructuring package for the company by March end. So, we can look forward  a series of upper circuits in the coming days. CMP: Rs.10.80. 
Buy Nifty_Futures at 5879, T---5940, SL---5850. As the RBI generally looks at the WPI Inflation, to take rate cut decisions and since the inflation projections are on the southern side (down-side), hence I feel a Repo rate cut of 25 basis points along with a 25 bps, CRR could also be there. 

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: 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. 

Report Card: End of the day analysis:

Today again defying all odds the markets closed in the green in tune with the newly opened European markets.

DCM Shriram Consolidated Ltd hit the buyer freeze today again. But I am still to get any solid news on the company about the land sale. I think if tomorrow the company does not come up with statements on the land sale deed one should exit the counter.

Today both Chandra Prabhu International Ltd and Coral Finance & Housing Ltd came out with compartively good results, speaking sequentially. When I say sequentially, I mean the company gave improved performance compared to the last quarter; but not Q-0-Q which is generally the common practice. This is the best method of analysis according to me, as it shows that the business environment is changing fast from bad to better and there is chance for higher growth of the company in the following quarters. As it is always not good to compare on Q-o-Q due to drastic change of environment over a longer time period---this parameter is sometimes a good method, to judge the growing companies. In case of Chandra Prabhu International Ltd, I am told that the net profit almost jumped more than 40% compared sequentially. And in case of Coral Finance & Housing Ltd I am told that the net profit when considered sequentially jumped by a huge amount. So I think the good days are ahead for both the companies and the worst is over. In case of Chandra Prabhu International Ltd it will start to get benefits from the Jatropha plantation from the Next year. Also it has tied up with an Australian drilling and Exploration company to give more teeth to its exploration wing. It is also into Bio-Technology. Please visit: www.cpil.com for more information on the company.

I have already said that the season of Chandra Prabhu will start from October and hence the good result compared to the 30st June, 2006 quarter.

Another heartening fact is the my another recommended pick Garnet Construction Ltd hit the buyer freeze today, closing at Rs.69.55.

BSEL Infrastructure Realty Ltd was recommended by India Bulls on 31-10-06, a day later I had recommended this scrip to all and sundry, looking at the chart patterns. The company has been A Rating by the India Bulls and have been give the Market Outperformer Tag. There are rumours in some quarters that it could shoot to Rs.1000 to Rs.2000 in 3 to 4 years time. But remember these are rumours and do not attach my name to this sort of news. I have already placed my targets in www.bcozindia.com, please read it.....

Some of the excerpts of the India Bulls report on it:

BSEL Infrastructure Realty Ltd. (BSELINFRA)

Overview: Price as of 10/31/2006 ... Rs. 66.80 Industry ... Information Technology 52 Week High / Low ... Rs. 101.65 / 35.00 Asset Class ... Mid Cap

Company Background :

Incorporated in 1995 as Bell South Enterprises Ltd providing computer software, hardware and peripherals for personal and official use. In 1998, company changed its name to BSEL Information Technology Ltd servicing IT clients globally. In order to include various infrastructure development activities company changed its name to BSEL Infrastructure Realty Ltd in 2003. Currently company operates in following segments viz., software services- exports, hardware sales and infrastructure activities As on 31/12/05, promoters of the company held 58.69% of the outstanding shares, followed by general public, institutional investors and other Investors holding of 28.05%, 0.13% and 13.13% stake respectively. India Bulls has has assigned BSEL Infrastructure Realty Ltd an overall rating of A based on the following parameters:

Fundamental---A ( Superior)

Valuation------B(Average)

Risk-----------C(Low risk)

P/E analysis:

IVRCL Infrastructure Ltd--->33.43 x

HCC------------------------->27.56 x

Unitech Ltd------------------>456.52 x

BSEL Infrastructure Realty Ltd--->18.02 x

PEG ratio analysis:

The PEG ratio indicates how expensive a stock is given its price, earnings, and expected long term growth. It is calculated as the P/E ratio, divided by the expected growth rate. Theoretically, the higher the ratio the more expensive the stock.

Industry PEG Ratio--->2.40

Market PEG Ratio----->1.22

BSEL PEG Ratio------->0.13

Besides this the company today said it has 20 lakh square ft. area to be developed. It is expected to generate revenues worth Rs.1500 cr in the next 3 to 5 years from its recent tie with a BSE listed construction company. The company has also forayed in Dubai for construction works. Besides the new news on Housing Sector, by the Maharastra Government will help all the Bombay based Cconstruction and Real Estate Companies. Since BSEL Infrastaructure Realty Ltd and Garnet Construction Ltd fall in this category, this new development will help them to get new projects in Housing and Real Estate. Its present order book position is Rs.200 Cr and it is expected to bulge further.

So one can still buy the stock with a short to medium term perspective, for a price target of Rs.120 and Rs.150 in 8 to 18 months time. This quarter the company is expected come up with good results.

Those who are holding another budding Real Estate company called Gravity(I) Ltd please continue to hold the same and add on all declines. As I have mentioned time and again that this micro-cap company has ventured into Real Estate, Hotels, Shopping Mall, Home furnishing and Retailing business. Since this is a Bombay based company it could get benefit from the new housing policy of the Maharastra Government.

More on the following mails.....

Best wishes,

Suman Mukherjee

India.

www.sumanspeaks.blogspot.com

www.bcozindia.com ( Market watch section of the site)

www.eindiabrokers.com