NDTV Ltd: Buy

CMP: Rs.227.25

Adani Group's price: Rs.342.65

Face Value: Rs.4

Market Cap: Rs.1466 Cr

TTM EPS: Rs.7.56

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Some Useful Highlights:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The report further shed light on some interesting numbers:

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

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

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

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

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

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

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

Bibliography: 

🍥The Financial Express.

🍥 Wikipedia.

🍥 The Business Standard

🍥The Economic Times.

🍥CNBC TV18.

🍥Moneycontrol.com

🍥Daily Mint.

 Market Mantra

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

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

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

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

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

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

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

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

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

 Market Mantra

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

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

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

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

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

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

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

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

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

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

 Market Mantra

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

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

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

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

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

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

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

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

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

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

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

 Tit - bits

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

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

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

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

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

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

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

 Market Mantra

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

Triggers:

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

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

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

 Winning Strokes

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

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

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

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

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

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

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

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

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

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

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

Mukhesh Ambani's AGM and Den Networks Ltd

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

But the news is already there in the public domain: 

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

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

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

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

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

Isn't it amazing? Just think.... 😊😊 

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

 Winning Strokes 

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

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

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

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

According to a report published in The Times of India:

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

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

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

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

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

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

In another report on CNBC TV18:

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

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

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

Tit - bits

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Winning Strokes: Think Different

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

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

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

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

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

Winning Strokes: Think Different

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

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

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

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

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

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

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

Winning Strokes

Photos: Colossos

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

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

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

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

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

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

Today's Calls

1. Buy Idea Cellular at Rs.85.45, T: Rs.89-91, SL: Rs..84.60. Idea Cellular to launch payments bank operations in June. The company, that recently received the Reserve Bank of India's final approval to open its payments bank, is in the process of integrating its systems with those of the National Payments Corporation of India and the RBI. Joining the network will allow it to facilitate interbank electronic transactions.

2. Sudarshan Sukhani says in CNBC TV18: "The chart of Tata Motors is horrible", but the share makes an intraday high of Rs.455.70.This only goes to show how only chart based calls are futile. I have been saying this since more than a decade, but Chartists (mostly the software sellers) fails to acknowledge this facet of trading.....😀 Anyway, if the stock manages to close above Rs.458, then we can look for targets of Rs.472-475, in the short term.

3. The worst in the telecom sector seems to be over, as RJio is now Paid. Moreover, UBS had earlier spoken of a much better quarter sequentially from Q1FY18 (June Quarter) onwards. Therefore, start accumulating Telecom stocks in bulk to reap good benefits in the short to medium term. Also the correction on RCom seems to over and one can buy the shares of RCom at Rs.34.50, T: Rs.39-41. There is no need to keep SL as the scrip of RCom is now available at rock bottom price, especially when the optimism in the sector is again returning; after almost 3-quarters of pain.
Meanwhile, there are recent media reports that the mega merger between Reliance Communications (RCom) and Aircel to create the country’s third-largest operator is entering the final phase, with both companies seeking shareholder approval in the coming days.

4. Today, the Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.11%, while the Shanghai Composite led the Hang Seng lower. They fell 0.74% and 0.21% respectively. Indians markets are today trading flat, however action is seen on beaten down Counters.

Important

1. Those who have still now not sold the

shares of Prajay Engineers Syndicate Ltd (Rs.14.05) can continue to hold with a SL of Rs.11.70 for earlier mentioned targets of Rs.18-21. The property prices in Hyderabad and Vijayawada are showing some buoyancy amidst all the doom and gloom in NCR, MMR, Bangalore, Pune, Kolkata, etc. How this opportunity is utilized by the Prajay management to effect a turn around, remains to be seen.

2. The shares of RCom should soon break out from the current levels and move towards Rs.53-54. The investors are suggested to have a little patience. Some of the analysts with qhom I spoke during the last couple of months have more or less given a target of Rs.72, for the scrip.

3. Shrenuj & Co hit another buyer freeze at Rs.3.65. The investors are suggested to book some profit.

4. With lot of fanfare, the Mumbai based operator S P Tulsian recommended MBL Infrastructure Ltd (Rs.105) and Jai Corp Ltd ( Rs.72.55). But once both the stocks started to underperform, he and his pet channel CNBC TV18 are found nowhere. Pump and Dump..? Photo: Dynamic Levels

5. Those who are holding Vedanta Ltd (Rs.215) from Rs.61-62 levels can book 80% profits a d hold the rest with a SL of Rs.196.

6.Those who have entered Texmaco Rail Ltd should hold with a SL of Rs.107. Since the budget date will be advanced, we can expect the share to touch Rs.141-142, in the next couple of months.

Navi Mumbai and Jai Corp Ltd

Photo: Twenty22--India

The land prices in  Navi Mumbai are shooting up due to:

(i) the proposed international airport near Ulwe,

(ii) the proposed trans-harbour sea link between Navi Mumbai and Shewri, south Mumbai. After its completion,  commuters will be able  reach Nariman Point from Panvel in mere 30 minutes.

(iii) the metro linkage between Navi Mumbai airport and Belapur. In future this metro project is likely to extend up to Chembur via Taloja and Vashi,

(iv) due to Navi Mumbai Sez.

The Financial Express writes on 3 October, 2016:

Navi Mumbai is now also connected via the eastern freeway in Chembur to Nariman Point in south Mumbai.

With real estate costs that are nearly as competitive as those in Gurgaon, Pune or even some pockets of Bengaluru, Navi Mumbai is staking a claim to become the next big IT hub. 

The direct beneficiary would be Jai Corp Ltd (Rs.71), which has large land holdings in Navi Mumbai and Mumbai Sezs apart from its traditional business. Anand Jain of Jai Corp is a close associate of Mukesh Ambani, who also owns land in Mumbai Sez.

I feel it is pertinent to mention here that S P Tulsian of www.sptulsian.com earlier told CNBC-TV18 that: "In the land bank, Navi Mumbai SEZ has 4,100 acre and Mumbai SEZ has 4,600 acre in which Jai Corp is having interest. With this trans-harbour link, Sewri to Navi Mumbai, that will give a good value to that land. Still things are there, regulatory clearance and all that conversion from SEZ, but this company is holding minority stake in that and that will definitely be seen quite positive."

Rolta India Ltd: Result Update

Rolta India Ltd has come up with a decent set of numbers for Q4FY16, with its Consolidated profit Zooming by 26% to Rs.59 crore on QoQ basis, mainly due to lower depreciation and amortization expenses.

However, its consolidated net sales in Q4FY16, dipped marginally by only 13.7% at Rs.846 crore The information technology company had net sales of Rs.981 crore in December 2015 quarter.

The depreciation and amortization expenses declined 89% to Rs 19 crore in March quarter from Rs170 crore in December quarter.

However, the share nosedived by more than 7%, as the rating agencies S&P Global Rating and Fitch Ratings cut the company's credit score.

S&P Global Ratings on Monday lowered its long-term corporate credit rating on Rolta India to 'CCC-' from 'B+'. At the same time, the credit rating firm lowered its long-term issue rating on the senior unsecured notes that Rolta Americas and Rolta issued to 'CCC-' from 'B+'. Rolta guarantees the notes.

On Friday, Fitch Ratings too had downgraded Rolta India's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) and senior unsecured class rating to 'CC' from 'B'.

Meanwhile, Rolta India Ltd's CMD, Mr.K K Singh said that the company is confident of making a USD 6.9-million payment on overseas notes before the grace period deadline of June 15, 2016. 

He was talking to CNBC-TV18 after S&P and Fitch downgraded the firm's credit rating following a default on its 10.75% 2018 unsecured currency notes. Singh said an increase in the company's receivables period, from average 120-125 days to almost 185-190 days led to a cash crunch. But he maintained that the company was transitioning into an IP-led solutions business and is looking to rope in a strategic partner for large projects like defence, something that would help revive margins and return to comfortable leverage levels. He also clarified that the recent exit of two senior-level management personnel had no connection to the business performance. 

Therefore, the investors are suggested to buy the scrip of Rolta India Ltd (Rs.72.20) at the CMP and hold on, for some decent returns over a period. 

Mcleod Russel Ltd: Results Update

The Economic Times wrote on 30 May, 2016: 

Leading tea grower firm McLeod Russel reported widening of its standalone net loss at Rs.235.67 crore in the fourth quarter of the 2015-16 fiscal on higher expenses and financial cost.The Kolkata-based company had posted a net loss of Rs.207.95 crore in the same quarter previous year, it said in a BSE filing.

But what the news portal missed out is to present the CONSOLIDATED RESULTS which are NOT THAT BAD. The stock reacted to the news and fell to Rs.179.80 at the time of writing this report. 

The company said its EBIDTA on standalone basis was lower at Rs.82 Cr against Rs.126 Cr on substantial increase in wages during the year. The impact of price increase of Rs.2 per kg, was not sufficient to take of such increase in cost. EBIDTA cost per kg went up to Rs.167 as compared to Rs.150 per kg. This means from the following quarters the company will not have this factor this; as far as the standalone results are compared. But we are more interested in the CONSOLIDATED RESULTS, because the shareholders generally look at the consolidated results, to find how a company is faring, isn't it? Moreover, we invest in a company depending on its future outlook. 

Now let us see what the company said in a BSE filling. 

(a) The Consolidating Operating Earnings Before Interest Depreciation and Tax (EBIDTA) is HIGHER at Rs.167 Cr as against Rs.130 Cr last year. The increase in EBIDTA was mainly due to increase in production and prices for Uganda and Rwanda operation. So, does that look SCARY? 

Now let us hear, what the company, spoke about its future outlook: 

Black Tea production during 2015, was negatively impacted by lower production in India and Kenya. Tea prices at Mombasa auction increase by 20% over previous year. However, tea prices in India maintained at last year's level. 

(b) We observed COMPLETE REVERSAL of these FACTORS during the FIRST FOUR MONTHS of the current year. 

Tea production in Kenya is reported to be HIGHER by 40 million kg upto March, as compared to previous year on account of much improved weather conditions. 

Tea prices at Mombasa auction during the first four months of the year have decreased by 20% as compared to last year. 

Weather conditions in India during the first few months of new season have IMPROVED substantially as compared to dry weather conditions last year. It is expected that the industry would recover substantial part of crop losses suffered last year. 

Prices in India are likely to REMAIN FIRM mainly due to ROBUST DEMAND in Indian as well as Global markets. Recovery of crop should help in setting of increase in the wages and other input costs. 

Now what does it mean? It indicates that the company is expected to perform much better than the previous year's performance. 


Moreover, in an interview with a Business Channel, CNBC-TV18, its Chief Financial Officer Mr.Kamal Baheti, said that the Tea company McLeod Russel  expects to produce 87 million kilograms of tea at its plantations in India, and 30 million kilograms at its overseas plantations. 

He said last year was difficult, but he expected a better performance this year. Baheti expects domestic realisations to imporve by 5 % this year and overseas realisations by 15-20%.

He said the company aimed to export 21-22 million kilograms of tea this year, compared to 13 million kilograms last year.

Also, remember, McLeod Russel is the largest tea plantation company in the world. It prides itself on running a successful business that directly employs over 90,000 people and has an excellent reputation around the world.

Hence, I would suggest the shareholders, to accumulate the scrip on all declines for an increased short term price target of Rs.220. 

McLeod Russel India Ltd: Buy

CMP: Rs.181.70
Target: Rs.205
Time: 60 days

The stock of Mcleod Russel India Ltd has not taken part in the current rally. Buy the share at the CMP of Rs.181.70, for a short term target of Rs.197. 

This Williamson Magor group-controlled company aims to scale up their packet tea business to become the third largest in India.

There were media reports last month that inclement weather is taking a toll on people across the country, especially the North-East where tea production might be impacted owing to difficult weather conditions. While Assam has witnessed heavy rains, Darjeeling has gone through a dry spell (though the company does not have much exposure here). Speaking to Bloomberg TV India, McLeod Russel CFO Kamal Baheti says while there could be some impact of April, FY17 looks brighter than last two years.

He said: "If you look at the full financial year, April produces 5 per cent of the overall production. So, the loss of crop in April may not really impact the annual production. But, it really depends on how the weather plays out. We hope that things will improve. It is normal in Assam to get rain continuously for 10-15 days. As I said, it’s too early to really make a call on this. But you know, if you really have to look at the structure of industry per se, it has been losing crop since last two years because of dry weather. This is the first time we’re getting enough rains in Assam. With a little bit increase in the overall temperature and rainfall, it may be a good year for production. And since the rate of production has been low in the last two years, we also expect the prices to be strong this year. Compared with the previous year, 2016-17 looks much better, both on the production as well as the price".

Earlier in an interview with CNBC TV18, on 22 March, 2016, Mr.Kamal Baheti, CFO said, "Considering supply shortages, good demand and firm closing prices during the last season (higher by Rs.20-25 per kg), tea prices are expected to be strong in the upcoming auction". 

He feels the tea prices are likely to increase by at least 15-20% in the new season from July to October.   

Baheti pointed out that a major chunk of the company’s profitability kicks in only during the third and fourth quarters as the new season begins.   Although overseas business of the company is also expected to perform better, the focus will be on the domestic market, he said.

Therefore, we can look for taking positions in the share of Mcleod Russel Ltd at the CMP of Rs.181.70, for target of Rs.193-197-205. The Company is coming up with Q4FY16 results, on 30 May, 2016. 

WINNING STROKES: THINK DIFFERENT

Please Click on the Photo to Expand

Rolta India Ltd, recommended at around Rs.92.75 to the Premium Group members on 16 December 2015, touched Rs.99.30, intra-day and closed at Rs.98.65. Tell me how many of the Free Members also made money, because the stock was also recommended in this blog at Rs.95.50? Now what to do with the scrip? Confused? Join the Premium Service!!

The price of my Paid Package/s is/are expected to increase from 15 January, 2016. Those who will enroll before that will get the subscription not only at the earlier price tag, but will also get 3 months grace. Which means the price will be Rs.10, 000 per year, for 15 months. Moreover, those who will trade through my recommended brokerage house, with a minimum portfolio size of Rs.1 lakhs, will get the Premium Subscription Free of Charge, till he/she continues trading through this platform...Also, those who are willing to invest around Rs.10-15 lakhs in share market, do let me know; I have a scrip which could double in the next 12-18 months (or may be before that). We just need to buy this scrip and keep holding. The profit will be shared in a mutually agreed ratio, between you and my firm.

Vedanta Ltd, recommended on 19 December, 2015, at Rs.84.30, today touched Rs.87, intra-day and closed at Rs.86.55. The stock will break Rs.96-97, soon; remain invested. 

TV18 Broadcast Ltd recommended on 26 October 2016, at Rs.32.75 in this Free Blog, today touched Rs.46.25, intra-day (which is the new 52-week high) and closed at Rs.45.80. Congratulations to all those who made money in this scrip. Keep visiting this blog and make money. 

Pipavav Defence Ltd today touched Rs.82 and closed at Rs.79.10, on the BSE-kindly book profits and enter either Vedanta Ltd at Rs.86.55 or Hindalco Industries Ltd at Rs.81.20.

The Stock of Gitanjali Gems Ltd (Rs.42.95) has started to look good once again. Keep buying the scrip on all declines, for a short term target of Rs.48.