Market Mantra

The Indian markets are trading with slight loss in absence of any major clue. Meanwhile, the US Fed Chair, Jerome Powell hinted for going to move more slowly in terms of any further interest rate hike.

#Buy 3i Infotech Ltd at Rs.35, for short term targets of Rs.41/46, SL: Rs.31.60. The software companies who are into automation should do well in the near future.

#The scrip of Central Bank Ltd (Rs.27.90) probably completed its correction phase today. With the current set of fundamentals, the stock should double from the current price. Accumulate or average your holding.

#The scrip of RTN Power Ltd (Rs.4.80) touched Rs.5.05, due to improved Fundamentals. The stock should cross Rs.10 in the coming months.

#The share of A2Z Infra Engineering Ltd (Rs.7.56) has been shifted to T - group. However, the company is expected to show a strong come back after few quarters of lackluster performance. Accumulate.

Winning Strokes

The trading pattern of the Singapore stock exchange's SGX Nifty suggests that the Nifty could open with a 40-point gap up. Overseas, Asian equities are up on Monday on expectations that the Federal Reserve would stop rate hikes this month following a mixed US jobs report, while crude oil jumped after Saudi Arabia vowed significant output cuts in July. You now have to pick up good small and mid cap stocks for the upcoming June - September rally. Photo: Equity Bulls.

#The stock of Zomato Ltd (Rs.71.15) made an intraday high of Rs.73.20. With this move all the short term targets have been achieved. Book profits and wait for dips to enter.

#The stock of Dhani Services Ltd (Rs.34.35) is consolidating at the current ranges. One of companies, Yaari Digital Integrated Services Ltd (Rs.12.90), whose promoter is Sameer Ghelaut, hit the upper circuit last Friday. This is expected to give a positive rub off to the shares of Dhani Services Ltd, since Dhani Services Ltd (Rs.34.35) also has Sameer as the promoter. Keep accumulating for targets mentioned in Twitter and Facebook.

Wikipedia: Sameer Gehlaut (born 3 March 1974) is an Indian businessman. He is the founder and chairman of the Indiabulls Group, a diversified financial services group with businesses in housing and consumer finance through independent and listed companies in the Indian stock exchanges.

Sameer Gehlaut's Indiabulls Housing Finance is India's second biggest mortgage lender. An engineer from India's elite Indian Institute of Technology, Delhi, Gehlaut started online brokerage Indiabulls with two college pals in 1999. Gehlaut took the company public in 2004 and moved into real estate scooping up prized land in Mumbai in public auctions. Gehlaut is building a Mandarin Oriental hotel in London's Mayfair area.

Dhani offers a range of products across both fintech and healthtech services. On the financial services front, customers can choose from a suite of products to help manage all their financial needs on a daily basis. Dhani is also home to an online store through which customers can get their hands on all daily need items. Its other financial services include investing, trading, and growing their wealth through smart stock broking solutions.

#There were news reports that Prestige Estates has bought out DB Realty Ltd's (Rs.84.10) stake in two ventures that are engaged in real estate projects in Mumbai, for ₹1,176.5 crore.

In DB Realty, Rekha Jhunjhunwala, wife of the late investor Rakesh Jhunjhunwala, hold about 1.4 per cent stake.The stock should cross Rs.100 in the near future as it's debt has come down to ₹976.54 crore. Hold with a SL of Rs.76.

#The share of A2Z Infra Engineering Ltd (Rs.8.15) which is into two happening sectors like Waste Management and erection of Telecom Towers, could be accumulated for targets of Rs.12/14. The 5G telephony service requires lot of telecom towers, especially in cities. Hence, the demand for telecom towers will continue to see an upward trajectory. Accumulate!! 

#Nahar Spinning Mills Ltd (Rs.262.10) should do well in the coming days. According to news reports, Nahar Spinning Mills has last year undertaken an expansion plan of 31200 spindles. The project's construction is proceeding well. Orders for the machinery have already been placed, and the project is planned to be completed by June 2023. After the expansion is completed, the company's spindle capacity will stand at 5,73,376 spindles and 1080 rotors. The stock is expected to cross Rs.400 in the near future. 

In addition, the company is adding 8 Vortex machines with 96 positions each to its spinning unit. The machinery orders have already been placed. The project is expected to be completed by June, 2023.

Furthermore, the Company's upgrading of the spinning and garment facilities is proceeding as planned. Under this plan, the corporation will replace the 33 old Ring Frames with the New Ring Frames. In addition, new Speed Frames, Card Machines, and Contamination and Control Machines are being installed. The machines have already been ordered, and the modernisation is expected to be completed by June, 2023. Accumulate!!

#Since crude oil is showing some positive momentum, you can buy the shares of Aban Offshore Ltd (Rs.40) near the CMP for short term targets of Rs.47/51.

#The stock of RTN Power Ltd (Rs.3.50) has started to move up. Accumulate for targets of Rs.4.30/Rs.4.60.

#The stock of the pharma giant Wockhardt Ltd (Rs.169.90) is trading at a dirt cheap price. Accumulate for targets of Rs.221/272.

Wockhardt is a global pharmaceutical and biotechnology organisation providing affordable high quality medicines across the world.

It has 14 comprehensive manufacturing facilities across India, US and Europe which are approved US FDA, UK MHRA and EAMA compliant sites.

Wockhardt is a global pharmaceutical and biotechnology organisation providing affordable high quality medicines across the world. It has 14 comprehensive manufacturing facilities across India, US and Europe which are approved US FDA, UK MHRA and EAMA compliant sites. Wockhardt has a global footprint with 75% of its business outside India. It is present in various segments like generics, biotechnology, injectable and antibiotic discovery. Wockhardt is focusing in 4 areas of business to be the strategic pillars for future growth. 

• First is the pharmaceutical business in UK, India, US and emerging markets. 
• Second is the manufacture of vaccine in UK under collaboration with Serum Institute to supply it globally. 
• Third is the entire injectable insulin portfolio in the diabetes Biologcal space. 
• Lastly is the deep commitment of the company in the research and development space for new drug discovery. 

The company has done an entire restructuring in its US business by closing down its manufacturing facility in Morton Grove in Chicago, USA, which was a significant drain on its financial performance. 

Wockhardt expects to save about USD 12 million in losses which it was incurring. But the company has identified the product portfolio to be now manufactured by a third party at a certified facility and will continue to maintain the sale of the product with approx 40% gross margin. 

The company has also recently concluded an agreement with Serum Institute to manufacture 150 million doses per year of vaccine at its UK facility for a period of 15 years and for which it has received £10 million contribution. 

Additionally, apart from the contract manufacturing there is a joint venture component in the agreement wherein there will be a profit sharing of 51:49, in favour of Wockhardt. 

The company has a significant presence in the antibiotic segment and is among the largest company in the world to have a comprehensive end to end discovery and development program. 

The deleveraging undertaken by the company over the last five years have resulted in the long term external debt going down from a whopping Rs.3,200 crore to about Rs.600 crore.

The Wockhardt stock has been in a downturn over the last few years due to high debt and falling sales. But now with external debt restructuring, fresh capital infusion and new contract agreements the company is poised to do well over the next few years. There is a new vision and energy in the company during the last one year and this should propel the Wockhardt to newer heights. The Wockhardt stock quoting at Rs.169.90 on the bourses can be accumulated by portfolio investors for long term solid gains. It has the potential to become a multibagger.

 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.

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

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

Market Mantra 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Various Segments of Company's Business:

Power Transmission & Distribution:

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

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

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

• Substations & Switchyards up to 765 kV.

• Transmission lines up to 765 kV.

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

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

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

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

Telecom Infrastructure EPC

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

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

• Network Integration.

• Telecom Infrastructure Operation & Maintenance Services.

• Material Planning & Project Management.

• Radio Frequency Engineering Services.

• Engineering Construction & Infrastructure Services.

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

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

Waste to Energy- Power Generation Projects (PGP)

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

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

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

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

Impact of COVID-19 pandemic

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

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

Accumulate!!

 Market Mantra

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

Triggers:

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

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

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

 A2Z Infra Engineering Ltd: Buy

CMP: Rs.10

Introduction: 

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

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

More Coming.......Stay Tuned....🙏🙏

 Winning Strokes

Yesterday, the BSE Sensex closed at 57,426.92 up 1,016.96 points (+1.80%), while the Nifty closed the day at 17,094.35, up 276.25 points (+1.64%). In the recently concluded meeting, the RBI maintained its full-year inflation forecast at 6.70% but lowered its growth estimates marginally to 7% from 7.20%.

Last week the Nifty managed to get back  above the psychologically vital 17,000 mark as well as its 200-day simple moving average (around 16,990), with crucial support at 16,750. I hope this week Nifty will be able to maintain this level, with occasional bouts of buying and selling. 

#The fall in coal prices will help the power sector stocks. While the power tariffs will remain same, the fall in coal prices would add considerable power to the bottomlines of these companies. Stay put in RTN Power Ltd (Rs.4.35), Reliance Power Ltd (Rs.16.40) and Adani Power Ltd (Rs.373.50).

The market cap of RTN Power Ltd is only Rs.2,336 crores. Moreover, the company has good land bank, which we will see below. 

Amravati Power Plant is spread over 1350 acres of land at MIDC Industrial Area. Nashik Thermal Power Plant in situated near Sinnar, 40 kilometers from Nashik city in Maharashtra, India. 

The plant spreads over an area of 1,040 acres has an installed capacity of 1,350 MW. Sinnar Power Plant has coal linkages from Coal India Limited (CIL) subsidiaries.

RTN Power Ltd hopes to become debt free within a couple of years. Hence, buy and hold the scrip for 2 - years.

Meanwhile, Adani Power Ltd, the India’s largest private thermal power producer’s 100% acquisition of Diligent Power Private and DB Power has been approved by the competition watchdog Competition Commission of India. The company announced to acquire DB Power for Rs.7,017 crore in last August. .

#The textile companies will witness new contracts from this month. The last period was marred by high cotton and crude prices. While the crude oil prices are still near $80 per barrel, the cotton prices have come down considerably in the last few months. 

A Hindu Businessline report of 30 September, 2022 states that, "Rates down over 35% from the peak seen in May as spinning mills expect further fall.

Trade sources estimate the daily market arrivals in the range of 25,000-30,000 bales (170 kg) and prices are seen softening ahead of peak arrivals in mid-October." Remain invested in good cotton scrips. I've already recommended two textile stocks, which are also owned by the ace investor, Dolly Khanna: Nitin Spinners Ltd (Rs.217.80) and Nahar Spinning Mills Ltd (Rs.306.45).

If you want to maximize your returns from the sock market investments, then you can go for my profit sharing mode; wherein the profit will shared in the ratio of 70:30, between you and my business concern 

In such cases you need to compulsorily open a demat account in my associate brokerage house, with a minimum portfolio size of Rs.2 lakhs. The working capital would be invested in delivery based scrips with occasional F&O trading. Hence, the chances of making gains over a period is good. For details kindly send me a mail at: sumonbombay@gmail.com.

#Post monsoon, the construction activities will commence in full pace. Moreover, the fall in the price of Steel and Cement will help the bottomlines of Construction companies. Keep accumulating the shares of Dilip Buildcon Ltd (Rs.220.80) and my old favourite A2Z Infra Engineering Ltd (Rs.10.30). 

Dilip Buildcon last week said it was declared as the lowest bidder for Phase-2 of Ahmedabad Metro Rail project in the state of Gujrat. The company has an order book of ~Rs.25,000 crores.

Dilip Buildcon is a full-service infrastructure company with construction capabilities in roads & bridges, mining, water sanitation, sewage and dams with a presence in over 19 states. The stock would give Multibagger returns from here.

I'll speak with my sources in A2Z Infra Engineering Ltd, this week. The company's June, 2022 quarter numbers were good on Q - o - Q basis. The company also installs Telecom Towers. The 5G Telephony will require lot towers. Accumulate both the shares during market dips.

#Short term traders can do ranlge play in the stock of Swan Energy Ltd (Rs.223.50). This is a huge Company, run by one of Narendra Modi's blue eyed boys.

 Winning Strokes

The Indian bourses are getting sold off strangely due to American Flue. 

The BSE Sensex was last trading at 52,692.68 down a whopping 1,460.19 points (-2.80%), while the Nifty was last seen trading at 15,781.60 down a massive 444 points. But I feel the fall is absolutely unnecessary. The SEBI should look into this issue and see if it is a case of market manipulation in collusion with the media.

In another significant development in the US, a few companies have reported lower earnings because of inflation effect, and this spooked Dow Jones and Nasdaq. The companies said that they are witnessing a fall in consumer demand due to spike in inflation. Fine! However, what is important to note is that India has a domestic economy which is showing high growth. Moreover, if demand destruction is really seen in the US, this means demand - push - inflation is coming down, which is a good sign. This further means that, the US Fed will refrain from going for agressive rate hikes in the near term. Hence, today's selling in India bourses simply doesn't make any sense, especially when the FIIs are buying in the F&O Market.

#Those who have a portfolio size of Rs.1 (one) lakh (Rs.50,000 offer is Fully Subscribed and no more quota is left) can join my associate brokerage house and get my guidance to maximize your returns from the stock market investments. 

Also, if you want me to play in the stock market on your behalf, on 70:30 profit sharing basis through the #Crorepati #Scheme, it can also be done, provided you compulsory have a Trading Account in my associate brokerage house. 

That facility of having trading account of any brokerage house to avail of this facility has been removed, from this month, due to foul play by some of the participants. You may send me a mail at: suman2005s@rediffmail.com or sumanm2007s@gmail.com.

Today's recommendation: Buy the shares of Vodafone Idea Ltd near Rs.8.90/8.95 for short term targets of Rs.11/13. The company is coming with a preferential issue at Rs.13.20. Hence, it is now certain that the stock will invariably touch Rs.13/14 by September, 2022. Moreover, there are talks of government of India, taking stake in Vodafone Idea Ltd. Also, the 5G launch will further sweeten the deal. Hence, Buy the shares of Vodafone Idea Ltd near the CMP (in BULK) and keep holding. This is now the golden goose of Indian telecom sector.

#Average the shares of RBL Bank Ltd (Rs.113.75), Canara Bank Ltd (Rs.186.20), Wockhardt Ltd (Rs.269.25), Indowind Energy Ltd (Rs.15.20) and Suzlon Energy Ltd (Rs.9.10). You will benefit in the near future, from June onwards the markets is likely to show a definitive trend. 

Moreover, you should buy stocks, whose stories you know. And therefore, this kind of massive fall gives opportunity to buy good stocks at reasonable valuations, with the SIP method.

#By the way, A2Z Infra Engineering Ltd hit another Buyer Freeze at Rs.12.75. Those who have entered early should think of booking partial profits and hold the rest with a SL of Rs.12.30.

 Winning Strokes

The BSE Sensex was last seen at 56,926.03 down 434.15 points (-0.75%),while the Nifty was seen trading at 17,053.65 down 147.70 points (-0.86%). 

The market breadth, indicating the overall health of the market, was negative.

FIIs net sold Rs.1,174.05 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs.1,643.84

Cr.

Yesterday in US, selling was witnessed as investors dumped equities on fears of an economic slowdown, spooked by high inflation.

Investors are worried about a Covid surge in China. Regarding the war in Ukraine, a top Russian official said the threat of nuclear war is Real.

On the positive, India continue to show high growth momentum, with its GDP is projected to grow fastest in the world. This is likely to attract foreign funds in Indian shores. Hence use the dips to accumulate good shares at reasonable prices.

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#There is a Festival Offer for those who wants to trade through my associate brokerage house. You can now join my associate brokerage house, if you have a portfolio size of just Rs.50,000 (Fifty thousand only). I've trimmed it down as per your request, from Rs.3/5 lakhs earlier. You'll get my free guidance, if you join my brokerage house, availing this offer. If you want to go for profit sharing, you can also do the same, but for that the minimum portfolio size should be Rs.1.50 lakhs. The investment will be mainly through delivery based trades and rarely through F&O. This will make your investments safe.

#The shares of A2Z Infra Engineering Ltd (Rs.14) gave good returns to investors. Accumulation when the corrective phase is over for the stock. It can retest Rs.12.70 on the downside.

#Suzlon Energy Ltd is doing well in the fundamental front. Suzlon Energy Ltd posted a consolidated net profit of Rs.37.73 crore in the December 2021 quarter, piggybacking  on higher revenues. The company had reported a consolidated net loss of Rs.118.06 crore in the same quarter of the previous fiscal. We can look for targets of Rs.17/19 in the coming days. Accumulate.

#Yesterday, I recommended a buy on RBL Bank Ltd near Rs.123/123.25, for short term targets of Rs.141/146.

The brokerage house, Motilal Oswal had earlier come out with its fourth quarter (January-March’ 22) earnings estimates for the Bank. The brokerage house expects RBL Bank to report net profit at Rs.198.4 crore up 163.3% year-on-year (up 27.1% quarter-on-quarter), while the Net Interest Income (NII) is likely to increase by 15.40% Y-o-Y (up 3.50% Q-o-Q) to Rs1,045.6 crore. Motilal Oswal has given a price target of Rs.200. Photo: The Financial Express.

#The shares of Wockhardt Ltd (Rs.276.60) should be accumulated on market declines. This is an investment grade scrip. Flush with Rights Issue money, the company is expected to further de - leverage its balance sheet. We can look for price targets of Rs.500 - plus by this Deepawali.

#The shares of Aban Offshore Ltd (Rs.64), reached both my short term targets of Rs.57 and Rs.71. The investors who are still holding can book part profit and hold the rest with a SL of Rs.61.

#Indowind Energy Ltd (Rs.16.60) is coming up with Rights issue by June, 2022. Accumulate The high crude oil price is exposed to push up the Wind Energy Tariffs.  the shares in market dips, if you wish to get right issues shares.

#Meanwhile, the shares of Swan Energy Ltd (Rs.314.25) rallied to Rs.333.40, after my report on Nikhil Merchant surfaced on this blog. However, I didn't give a buy on the scrip.

 Winning Strokes

Today, the markets went for selling at the end of the day. The BSE Sensex tanked by 664.32 points (-1.16%) to 56,502.42, while the NSE shed 198.40 points (-1.16%) and was last seen trading at 16,975.25. 

I basically feel two reasons for the indices to come down suddenly: (i) The money is coming out of the overvalued Large caps and entertaining the Mid and Small caps. (ii) Fresh Covid - 19 scare might have spooked the retail investors. However, you should use this kind of opportunity to accumulate good shares at a reasonable price.

#As expected A2Z Infra Engineering Ltd freezes hit another buyer Freeze at Rs.13.45. We can look for good targets going forward.

#The shares of Reliance Naval and Engineering Ltd hit the Upper Circuit today at Rs.3.75. Accumulate for targets of Rs.11/12. You should buy and keep holding, since you know the story. The lenders will not agree to go with JSW Energy not only because its bid is too low, but also because Nikhil Merchant is more experienced when it comes to executing Defence contracts (like making of War Ships).

#Buy the shares of Wockhardt Ltd at the CMP of Rs.285.90, for short term targets of Rs.410 - 441. SL: Rs.266. I'm expecting a turnaround in this quarter.

#Those who have still not booked profits in Aban Offshore Ltd (Rs.56) are requested to do the same and hold the rest with a SL: Rs.51.

 Winning Strokes

Yesterday, the BSE Sensex closed at 58,576.37 down 388.20 points (-0.66%), the Nifty ended the day at 17,530.30 down 144.65 points (-0.82%). 

The FIIs were net sellers to the tune of Rs.3128.39 crore, while DIIs were net buyers of Rs.870.01 crore. But FII selling only on the peg of expected US interest rate hike is too childish.

The broader market declined sharply. The BSE Mid-Cap index slipped 1.45% and BSE Small-Cap index lost 1.47%.

On the BSE, 1,110 shares rose and 2,316 shares fell. A total of 90 shares remained unchanged.

Last week, the RBI kept repo rate unchanged at 4%, while maintaining its accommodative stance after the conclusion of the MPC meeting on 8 April 2022.  Reverse repo rate stands at 3.35%.

The MPC voted unanimously to maintain an accommodative stance. For FY23, real GDP growth is projected to be 7.2% (down from 7.8% estimated in the previous policies). The CPI inflation is seen averaging at 5.7% (up from 4.5% estimated earlier).

#The shares of Global Vectra Helicorp Ltd (Rs.56.20) moved to Rs.59, intraday. I've been asking all to accumulate when the share recently fell to around Rs.46/47 ranges. The problem is that most investors, don't buy a scrip when it falls to lower levels inspite of my repeated reminders.  I'm looking for a target of Rs.120/180 in the coming days, as the crude oil prices has started to slip below $100 per barrel. However, the welness of the Crude Oil Exploration sector is directly proportional to the fundamentals of the company, though too high price of Crude Oil will dent its fundamentals.

Oil prices dropped on Monday amid fears that COVID - 19 lockdowns in China would depress global demand. International benchmark Brent crude declined 4.18% to settle at $98.48 per barrel.

#The shares of shipbuilders were in demand yesterday. Garden Reach Shipbuilders & Engineers (up 15.42%), Mazagon Dock Shipbuilders (up 8.97%) and Cochin Shipyard (up 5.33%) soared.

I had already mentioned that the fortunes of the Shipping sector is directly proportional to the buoyancy in the Crude Oil space. I had already recommended Reliance Naval and Engineering Ltd (Rs.3.50) for short to medium term gains. This is a sophisticated ship building yard. Due to the downturn in the sector and also due to unfavorable government of India's policies, the company suffered. Now, the new management is likely to put fresh blood in the company. I'm looking at a price of Rs.10/12 by this Deepawali. Accumulate on declines.

#In another major development, Adani Green came out with wonderful Q4FY22 numbers backed by robust performance in both solar and wind portfolios. 

I've telling since sometime that the rise in crude oil and coal prices is likely to spike up the tariffs of wind generation or to specify broadly, Renewable Energy companies.

Taking this perspective in mind, I've already recommended the shares of Indowind Energy Ltd (Rs.17.70). The company has started to perform excellently well in the fundamental front. 

Meanwhile, the Board of directors of Indowind Energy Limited at its meeting held on 7th January 2022, had decided to issue shares on the rights basis to existing shareholders for an amount not exceeding Rs.50 crores only. On that day the shares touched Rs.41.40, intraday.

Accumulate for a target 🎯 of Rs.71/72 in the short to medium term. Stay invested in Suzlon Energy Ltd (Rs.11.20), too.

#The scrip of A2Z Infra Engineering Ltd (Rs.11.50) is consolidating around the CMP. I'm expecting a turnaround in Q1FY23. The share is liked to cross Rs.15 by this Deepawali. Stay invested.

Winning Strokes

Dow Jones rose by 1.02% or 349.44 points to 34,707.94 while Nasdaq rose by 1.93% or 269.23 points to 14,191.84. The 10-year Treasury yield rose 5 basis points to 2.37%. Photo: DailyFx

Back home, according to a report published in The Hindu on 24 March:

"In the COVID-19 year of 2020-21, both real GDP and GVA contracted by minus 6.6% and minus 4.8%, respectively. The NSO’s SAE show that real GDP and GVA growth are estimated to recover to 8.9% and 8.3%, respectively, in 2021-22. Despite this improvement, the magnitude of real GDP at ₹147.7 lakh crore in 2021-22 is only marginally higher than the corresponding level of ₹145.2 lakh crore in 2019-20. The NSO’s GDP data highlights that in 2021-22, the nominal GDP growth at 19.4% is significantly higher than the real GDP growth due to an inordinately high implicit price deflator (IPD)-based inflation rate of 9.6%. Monetary policy authorities need to take note of this.

However, the growth of consumption and investment demand — as measured by private final consumption expenditure (PFCE) and gross fixed capital formation (GFCF) in 2021-22 over 2019-20 is only 1.2% and 2.6%, respectively, suggesting sluggish revival in domestic demand".

Moreover, the report says: "Real GDP growth moderated from 20.3% in Q1 to 5.4% in Q3 of 2021-22. Similarly, real GVA growth also fell from 18.4% to 4.7% over this period. The implied Q4 GDP and GVA growth rates are estimated to be even lower at 4.8% and 4.1%, respectively. Thus, without a base effect, quarterly growth performance appears to be averaging at less than 5%".

This suggests that the RBI is likely to go slow on its expected rate hikes. In the US front too, fed could delay its future rate hikes, as high crude oil price may slow it GDP growth too.

#The stock of Global Vectra Helicorp Ltd (Rs.47.95) has been kept in the T - group since months, though there is hardly any trading activity or volume in the counter. This shows the dismal condition of the surveillance mechanism of Indian stock exchanges. 

Though I have been writing about this aberrations since the last few weeks, hereto, it has fallen on the deaf ears of the stock exchange regulator. Hope, the Finance Ministry will look into the matter and take appropriate steps to bring the stock out of the T - group. 

However, with the price of Crude hitting glass ceiling, we can expect the future of Helicopter 🚁 companies catering exclusively to the oil and gas sector, apart from Heli - tourism (Heli - pilgrimage) to fare well in the coming days. Stay invested and don't get purturbed by short term price volatilities, as future of the overall Airlines market looks bright, post government of India lifting up curbs, following the reduction of cases related to Covid - 19 pandemic.

#With the buoyancy in the commodity prices Continuing post Ukraine - Russian border conflicts, the future of Steel, Aluminium, Nickel, Oil Exploration companies looks excellent. The stock of, my recently recommended SAIL had already touched Rs.104.95 yesterday. The share will become ex - divided on 28 March, 2022.

#The shares of Oil Exploration companies or those into Crude Oil Drilling or into seismic surveys, could continue to show upward bias in the coming days, akin to what happened post Gulf War in early 2000 A.D.  

When cruede oil price is booming in the international markets, it is natural that the valuation of Oil Exploration counters will rise, like any other Commodity player. I'm expecting the stock of Selan Exploration Technology Ltd (Rs.197.20) to touch Rs.221/232 in the coming weeks. Similarly, ONGC (Rs.177.50) could be heading towards Rs.200 - plus. I'm having a target of Rs.2700 for RIL. Jindal Drilling (Rs.253.25) on the other hand could cross Rs.300, as per day charges for works related to Drilling and Maintenance of Crude Oil rigs are set to move up further.

Also, at the moment the share of Aban Offshore Ltd (Rs.49.25) looks poised for a rally, as the company is in the process of reducing debts by selling its assets. The company came out with excellent December, 2022 quarter result, when there was addition in both its top and Bottomlines on Q - o - Q basis. Moreover, Aban Offshore Ltd (Rs.49.25) has now ventured into international waters and is doing work for an Iranian oil company. The sale of Jack - up Rig deep driller 1 owned by its step down subsidiary Deep Drilling 1 Pte Ltd was completed on 17 March, 2022, which will further reduce its debt. High debt has been plaguing its financials since some time, which got accumulated due to lower crude prices for few years, earlier. Now with some research houses predicting the Brent Crude Price to touch $200, we can expect the overall buoyancy in the oil and gas sector to continue for a prolonged period. Also, all the data starting from its current book value, as mentioned on Moneycontrol.com is probably wrong. Take the help of BSE website, to study its financials. I'm expecting a target of Rs.71/77/82 for Aban Offshore, in the coming days. Accumulate!

#The stock of Shriram EPC Ltd (SEPC) jumped up yesterday by more than 5% to Rs.7.95 following a news in one of the group companies. However, till the QIP is announced, the share could consolidate around the current levels. Accumulate if the share closes above Rs.8.30, with good volumes.

#The stock of the diversified company A2Z Infra Engineering Ltd (Rs.9.80) could turnaround in this quarter. The company has been reducing its debt continuously and had an OTS with a lender. According to my close sources, the company has started work in 2/3 places in Delhi (NCR), after its business got severely affected due to prolonged bouts of Covid - 19 pandemic. It now has a healthy order book. Accumulate!

 Winning Strokes

The markets are trading in the green as of now. The BSE Sensex was seen trading at 55,561.78 up 97.39 points (+0.18%), while the Nifty was seen at 16,636.00, up 41.10 points (+0.25%). I feel over the next few days, the indices will consolidate around the current ranges, while we will continue to see stock specific actions. Photo: News8Plus.

#The shares of Bombay Rayon and Fashions Ltd (Rs.7.95) Freezed in NSE. Keep holding for targets mentioned earlier.

#The stock of A2Z Infra Engineering Ltd (Rs.10.90) hit another consecutive buyer Freeze. We are likely to see further positive action in the counter. It is a huge company and hence we can expect good returns in the near future.

#Risk taking investors can buy or average out, the shares of Future Retail Ltd (Rs.46.40).

I feel the game is over for Amazon and the Apex Court is likely to give a favorable view on 15 March, 2022. Mukhesh Ambani, is tightening his grip over the company and soon we may hear the news of the Final Deal.

The crux of my recommendation: the Reliance Group had earlier stated that it will honour the agreement with Future Group. It has even pushed back the deal's deadline to September 30, 2022.

Moreover, the lenders are not likely to call for insolvency or any such coercive measures, as it will invariably give them lower recoveries.

The best option at the moment (according to my understanding) for the lenders would be to press Amazon, Reliance Group and Future Group come to an agreement, through talks. It is pertinent to mention here that last week, both Amazon and Future Group agreed in court to hold a dialogue. The next hearing in the matter is scheduled for March 15.

Importantly, in August 2020, when the deal was originally announced, the transaction was valued at around Rs.25,000 crore. The catch is that, when Reliance group had mentioned that it will honour the deal, then we can expect the process to happen around those valuation. 

Also, it is now apparent, that Amazon group has grossly underestimated the prowess of the Mukhesh Ambani controlled Reliance Group.

Therefore, (speculative) Buy FRL at the CMP of Rs.46.40, with a strict SL of Rs.41.60 (Exit) for short to medium term targets of Rs.57/59/66/71.

#Yesterday's recommendation of Steel Authority of India Ltd (SAIL, CMP: Rs.99.65) at around Rs.98, today made a high of Rs.101.85, intraday. The way Commodity prices are rising in the international markets, gives us the liberty to take a positive view on SAIL. The company has mines in Jharkhand, Chattisgarh Orissa and Bengal. 

We can look for targets of Rs.117/121/127/131 in the next couple of months. Remain invested.

Winning Strokes

The India bourses are roaring, after some respite came on the war front. The BSE Sensex was up by 828.39 points (+1.52%) to 55,475.72, while Nifty was seen trading at 16,592.80 up 247.45 points (+1.51%). With minimum negative news coming from the Ukraine - Russia border issues, we can expect some more upward movement in the indices.

#Today's call: Buy the shares of SAIL near Rs.98, for short term targets of Rs.127/131. 

The new plant of SAIL at Rourkela, Odisha is generating good demands for its products as it uses the latest technology to manufacture (flat products, coils, etc). Meanwhile, the commodity prices are shooting over the roof in the international markets.

#As expected the shares of A2Z Infra Engineering Ltd (Rs.10.40), hit the buyer freeze in the opening trade. It is a huge company, whose operations got hit due to Covid - 19 pandemic. However, the condition of the world is improving day by day, we are likely to see good performance of the company going forward. The shares are likely to touch Rs.31/32, by Deepawali. Stay invested.

#The stock of BF Utilities Ltd recommended at my Facebook page and various equity related groups at around Rs.317,  a couple of weeks back, today made a high of Rs.339.45. Keep holding for targets of Rs.307/321.

 Winning Strokes

Yesterday, the domestic bourses closed in the red following the Ukraine - Russia border tussle. The BSE Sensex closed at 57,683.59 down 149.38 points (-0.26%), while the Nifty ended the day almost flat at 17,206.65 down 69.65 points (-0.40%). However, the selling was more pronounced in the small and mid cap segments, due to the IMAGINARY FEAR of escalation of the crisis.

Interestingly, this kind of border skirmishes are regular in India (with Pakistan) in the north western and western side of Indian border. Kashmir Issue continues to drain India's resources, but we see no impact on the world economy.

But surprisingly, this issue between Ukraine & Russia is getting blown out of proportion, due to highhandedness of the media. The world media should behave responsibly, so that peace returns smoothly.

It is pertinent to mention that Ukraine is a very small country, with its GDP size [184.92 billion (nominal, 2022 est.)] of less than that of Uttar Pradesh [₹17.05 trillion (US$230 billion) (2020-21)].

Hence, how can any future war with Russia affect the world economy except creating HOT AIR is beyond my comprehension and understanding. Therefore, my suggestion would be to accumulate/average good stocks at reasonable valuations for 3/4 months perspective.

#A2Z Infra Engineering Ltd (Rs.9.20) could benefit from the launch of 5G Services in India. Company has tied up with Telesonic Network Ltd (an Airtel group company) for work to be carried out on continuing basis at various circles including obtaining permission from applicable authority for HDD/Open Trench/Moiling/First level restoration/Duct Pulling up to 4 number/

DIT/All Fiber Blowing & Pulling/Splicing/Manhole and Hand hole Supply and installation/ODF and OTB installation/AT Testing and sign off/Handover to O&M Team and such other work as may be specified/required from time to time. Photo: Indiainfoline.

In the Renewable Energy space, Company collaborated with sugar mills for setting up 3 (three) power plants on Built, Own, Operate and Transfer (BOOT) basis for a period of 15 years in the state of Punjab and to ensure continuous supply of Refuse derived Fuel (RDF) to the said Power Plants, Company developed an indigenous waste processing plant for running the said Plants on Refuse Derived Fuel (RDF) from Municipal Solid Waste.

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

Due to these disputes with sugar mills in respect of cogeneration power plants, the management of the Company may decide to shift these power plants to other locations subject to availability of RDF at that location(s).

However, due to Covid and above mentioned issues all 3 (three) power plants are non - operational. Once they become operational and become EPS accretive, the stock would shoot up like a Rocket. At the moment it is on the Asset side of the Balance Sheet.

By the way, the cost of setting up (or the price of) a RDF Technology plant in India is Rs.3 crore/unit, which will give you a rough estimate of the valuation of the 3 (three) Power Plants. 

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

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

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

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

• Network Integration.

• Telecom Infrastructure Operation & MaintenanceServices.

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Under Engineering Services segment A2Z Infra Engineering Ltd pursues infrastructure projects like Sewage Network & Treatment Plants, Gas Distribution Networks, and Metro projects in select cities.

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

The stock which is also into Renewable Energy space (compare it with Suzlon Energy Ltd) is trading at around half its Book Value (Rs.18.08), which is absolutely a misnomer. The current market cap of Rs.162 crore also doesn't make any sense.

#The stock of Shriram EPC Ltd (Rs.8.76) closed in the Green yesterday, after I confirmed that the company is not looking to sell its renewable energy company, Orient Green Power Ltd (Rs.12.70). The stock of Orient Green Power needs to hold Rs.11.70/11.90, for any sustained upside from the current price.

#Global Vectra Helicorp Ltd (Rs.51.90) closed flat yesterday. I feel most of the market has probably not understood the December 2021 quarter results. 

In the Q3FY22, the total income of the company came as Rs.91.58 Cr as against Rs.87.26 Cr in the September, 2021 quarter and Rs.91.55 in the December, 2020 quarter. The profit before tax in Q3FY22 came as Rs.1.37 Cr against a loss of Rs.9.01 Cr in the September, 2021 quarter and loss of Rs.2.93 Cr in the December, 2020 quarter, showing a marked improvement in the fundamentals. However, though the OPM came at 29.47% (24.73%), the Cash EPS remained flat at Rs.12 for the December, 2021 quarter.

I would therefore, suggest you to accumulate the shares of this Helicopter company during the market declines, for targets of Rs.120/180. 

I feel the stock is unnecessarily languishing in the T - group since more than a couple of months, due to faulty surveillance mechanism. 

 Winning Strokes

The BSE Sensex is last seen trading vat 57,845.62, up 12.65 points (+0.02%), while the Nifty was seen trading at 17,269.65 up 8.45 points (+0.05%), from the Friday's close. The Nifty as expected took support at 17250 level. If 17200/17250 range holds then we could see a sharp reversal in the coming days. Keep accumulating those stocks which have a story to tell.

#Buy the scrip of HOV Services Ltd near Rs.50/51, SL: Rs.47 (Strict on closing basis), T: Rs.61/63/72. This is a high Beta stock, which means it rises more when the Indices rises.

#The stock of Bombay Rayon and Fashions Ltd (Rs.7.40) is available at an attractive valuation, for long term prospects. As mentioned umpteen number of times, it has a huge factory at Boisar West (near Tarapur Atomic Power Plant) and also another one in Bangalore. The company as per my sources in Mumbai Metropolis (Read Boisar) is doing fine at the moment, though its Mask 😷 Making Division is facing stiff competition from Me - too outfits.  I had personally visited its premises, I mean its  Boisar plant, a couple of times, and had witnessed that full fledged production was going on. 

#The scrip of A2Z Infra Engineering Ltd (Rs.9.25), should bounce back from the current levels. We can look for short to medium targets of Rs.17/19.

It could benefit from the launch of 5G services in India.

The company recently informed that A2Z Infraservices Ltd ('a material subsidiary of the Company'), received a contract from NBCC (India) Limited, for a period of 3 (three) years.  Photo: A2Z Website.

The aggregate amount for the said contract is Rs.64,72,57,235/- (Rupees Sixty Four Crores Seventy two Lakhs fifty Seven Thousand Two Hundred Thirty Five Only) inclusive of all Taxes, Duties, Cess, and Statutory Levies etc.

Apart from infrastructure projects, the A2Z Group also carries out the generation of power through the residues of municipal solid waste. 

Waste to Energy - Power Generation Projects (PGP): The Company collaborated with sugar mills for setting up 3 (three) power plants on Built, Own, Operate and Transfer (BOOT) basis for a period of 15 years in the state of Punjab and to ensure continuous supply of Refuse derived Fuel (RDF) to the said Power Plants, Company developed an indigenous waste processing plant for running the said Plants on Refuse Derived Fuel (RDF) from Municipal Solid Waste.

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

Company however may decide to shift these power plants to other locations subject to availability of RDF at that location(s). Once that is done, these plants would become EPS accretive.

At the moment due to Covid and above mentioned issues all three power plants are non-operational, and is present on the Asset side of the balance.

The company is in the verge of opening its Gurgaon office, after a prolonged period, post Covid - 19 imposed lockdown. At the moment most of the office bearers are working from home.

#The stock of Global Vectra Helicorp Ltd (Rs.50.35) hit lower circuit today, due to sentiments regarding the rise of crude oil prices. 

There is no volume in the counter and the scrip has been falling from around Rs.63/64 levels, but surprisingly the stock market regulator has still not removed it from the T - group, showing how they function and deserves to be criticised. That the stock market regulators hereto have kept the scrip since more than a couple of months in the group, raises a lot of questions regarding the quality of Indian surveillance mechanism.

#The stock of Orient Green Power Ltd (Rs.12.70) is out of LC, but it needs to hold Rs.11.70/11.90 on the downside.

The prospects of Renewable Energy companies are bright as the Crude Oil prices are chugging higher and higher, every week.

Both Orient Green Power and A2Z Infra Engineering Ltd are into Renewable Energy, spaces.

#Suzlon Energy Ltd (Rs.9.65) might test Rs.9.20/9.30 on the downside, where accumulation or averaging can be done.

#Meanwhile, the Union Finance Minister Nirmala Sitharaman said that the government wants a sustained recovery and that the budget proposals for infrastructure construction are an attempt to create a multiplier effect that will help the economy.

Nirmala Sitharaman during a post-budget interaction with industry in the country's financial capital mentioned that the budget was prepared at a time when the economy was recovering from the effects of the pandemic.

She further stated that the budget prioritises growth revival, as well as messages about sustainability and a predictable tax regime. "We would prefer a long-term recovery".

#The share of Shriram EPC Ltd (Rs.8.65), should be accumulated in all market declines, as my sources in Chennai has confirmed that the Shriram group is not interested in selling Orient Green Power Ltd (Rs.12.70). The company has good order book position.

The prospects of Renewable Energy companies look bright as the Crude Oil prices are chugging higher and higher every week.

 Winning Strokes

The domestic bourses are now trading deep in the red. The BSE Sensex is now trading at 57,950.99 down 707.21 points (-1.18%), while the Nifty is trading at 17,313.55 down 209.05 points (-1.16%). The Nifty is likely to get support at 17200/17250 ranges. This is a buy on declines market.

#Bombay Rayon and Fashions Ltd freezed at Rs.8.55. The stock is out of the Z - group and has opened a retail store in Bangalore. It is now a holding company like my other recommended counter, Coffee Day Enterprises Ltd.

BRFL Textiles Private Ltd. 

BRFL Textiles Private Ltd. (BTPL), housing the largest single-roof fabric processing unit in India, has completed an INR 2.4 Bn equity infusion from a consortium of marquee financial investors led by JM Financial India Fund II (an Indian growth private equity fund), Think Investments (a San Francisco-based investment firm), and others.

Keep adding in declines for targets of Rs.11/12. Photo: Newly opened retail store in Bangalore.

#A2Z Infra Engineering Ltd (Rs.11.40) is consolidating at the current levels before the next upmove to Rs.21/26.

#Shriram EPC Ltd (Rs.9.80) is preparing for the next upmove as according to my (unconfirmed) sources in Chennai, the QIP of Rs.350 crore will start this month. Keep accumulating for targets of Rs.31/32.

#Union Bank of India Ltd (Rs.50.60) touched the 1st target of Rs.51 (Intraday: Rs.51.70).

#Marshall Machines Ltd (Rs.53) is finding difficulty to cross Rs.55/57.50 level. Book profits.

#UCO Bank Ltd (Rs.13.55) should slowly move towards Rs.17/19.

#Global Vectra Helicorp Ltd (Rs.56.10) has no volume but surprisingly it is still in the T - group.  This raises serious questions regarding the quality of SEBI's surveillance mechanism.

Global Vectra Helicorp Limited provides helicopter charter services for offshore transportation as well as services to the oil and gas exploration and production industries. It also provides on-site transportation via helicopter charter.

#The Bombay based construction outfit: Generic Engineering Construction Ltd (Rs.43) made Rs.44 intraday. It might again attempt to break out of Rs.45/47 ranges. Keep watch.

 Winning Strokes

The Sensex is trading at 56,983.83 down 495.61 points (-0.88%), while the Nifty is seen at 17,014.75 down 129.85 points (-0.78%). The Nifty is likely to get strong supports around 16700/16900 ranges, hence is not likely to break in this corrective phase.

Meanwhile, the yields on U.S. government bonds fell sharply to begin the week on Monday, as global equities nosedived, but quickly recovered.

Investors are anticipating the Fed policymakers' two-day meeting, which begins on Tuesday and concludes on Wednesday. This meeting is widely expected to lay the groundwork for a shift away from easy money stance, this year, without taking any policy action.

The rising global tensions and increased volatility in domestic and international stock markets are likely to continue to anchor the Bond yields lower.

In another significant developments,  the economic reports released on Monday, showed that the U.S. economy slowed in January as the  pandemic's (COVID-19) Omicron wave exacerbated supply delays and labour shortages. The flash purchasing managers index for manufacturing fell to 55.0, a 15-month low, while the gauge for the services sector fell to 50.9, an 18-month low, according to IHS Markit. This condition further attests to the fact that the Fed in all likelihood, is not expected to hike the interest rate too early. 

Incidentally in Asia, benchmark Chinese government bond yields fell through a key level for the first time in nearly 20 months on Monday, following the central bank's latest rate cut and as expectations grow for further easing to stabilise the slowing economy.

For the first time since May 28, 2020, China's 10-year yield fell below 2.70% falling 2 basis points (bps) in early trade to 2.685% before retracing. It was last at 2.720%.

Hence, we have two contrasting sceneries from two of the large economics of the world -- and it is no longer a one - way street, as far as the interest rates are concerned.

We are therefore, perhaps, at the last leg of market dip, triggered by various external parameters.

I feel the markets should stage a comeback, later in the day. Hence, this kind of market correction offer opportunities to enter good stocks at reasonable valuations.

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

#Keep adding A2Z Infra Engineering Ltd (Rs.12.05) on declines. Its venture related to E - cycle and RDF Technology, should see the stock cross Rs.50/70 in style. Photo: A2Z Infra Engineering Ltd's E - cycle, which is generating good business for the company.

#Add the shares of Shriram EPC Ltd (Rs.8.95) on declines. The Rs.700 crore fund infusion, could make it one of biggest multibaggers in the EPC space. Moreover, it has around 49% holding in Orient Green Power Ltd. 

#Buy the shares of India's largest Helicopter player, Global Vectra Helicorp Ltd (Rs.55.25). 

It is into essential services too (Ferrying passenger to offshore drilling rigs, etc), Religious tourism, simple tourism, film shooting, etc and hence its activities should not be confused with a normal airlines company getting affected by Covid - 19 pandemic (though some effects will be there...).

#The shares of Orient Green Power Ltd (Rs.19.70) could correct upto Rs.17/13, where accumulation could be done. This is a Shriram group company, but has debts on its books.

#Buy the shares of BF Utilities Ltd near the CMP of Rs.385.55, for short term targets of Rs.442/472. SL: Rs.367.

#Keep holding the shares of my strongly recommended Coffee Day Enterprises Ltd (Rs.69.20), with a SL at Rs.66. If you remember, this was recommended around Rs.29/31, in this blog, few months back.

#Buy the shares of Union Bank Ltd near the CMP of Rs.42.50, for short term targets of Rs.61/66. SL: Rs.36.

#Buy the shares of Mukhesh Ambani controller Reliance Industries Ltd near the CMP of a Rs.2330.45, especially when the crude oil is Boling in international markets, for short term targets of Rs.2700/2800. SL: Rs.2170.

 Winning Strokes

The India stock markets have recovered from the morning blues. The BSE Sensex was last seen trading at 61,359.93 up 51.02 points (+0.08%), while the Nifty was seen trading at 18,304.85 up 2.75 points (+0.02%). While the Nifty is likely to trade in a range, we are likely to witness a pre budget rally in the mid, small and micro cap counters. Buy good stocks and keep holding till the budget date.

#My Strongly recommended Silgo Retail Ltd hit the buyer Freeze today at Rs.41.60. the stock was recommended in this blog around Rs.33.70. I'm looking for targets of Rs.51/52.

#Buy the shares of Shriram EPC Ltd at Rs.10,  T: Rs.17/21.

There are media reports that the Shriram Group is  in talks to exit Orient Green Power Ltd (Rs.23.50). Interestingly, the Shriram Group through Shriram EPC, is currently the largest shareholder of Orient Green Power Ltd with a 49% stake in it. Hence, this value unlocking could give a huge boost to the financials of Shriram EPC Ltd. Photo: 2: MoneyControl.com

Meanwhile, the price of the shares of Orient Green Power Ltd has almost doubled in the last one month. We should see a corresponding appreciation of the share price of Shriram EPC Ltd (Rs.10). 

Earlier, there were media reports that, 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.

In 2017, Shriram EPC Ltd forayed into a completely new business vertical of transport engineering, by winning a Rs 71-crore order; which involved designing, manufacturing and maintaining a second ropeway at the Arulmigu Dandayuthapani Temple in Palani, Tamil Nadu that will serve 1,200 people every hour. For this it had tied up with France's Poma S.A, which has built over 8,000 ropeway installations globally, to supply technology equipment for the project.

Apart from this, the company is into sewage management, renewable energy, building metallurgical plants and in municipal services sector. Photo:1: Indiainfoline.com

There were media reports in December, 2021, that the company is looking to raise funds upto Rs.700 crore. The break - up:

• Rs.350 crores through equities.
• Rs.175 crores by compulsory convertible debentures.
• The balance, Rs.175 crores through non - convertible debentures.

#The stock of Coffee Day Enterprises Ltd (Rs.69.50) made a new 52 - week high today at Rs.73.70. If you remember the stock was strongly recommended at end of last year at Rs.29/31.

#The share of A2Z Infra Engineering Ltd (Rs.12.30) buoyed by Electric Vehicle story and RDF Technology used for waste disposal, hit the buyer Freeze today. 

Meanwhile, the Union Government has made it easier for public and private enterprises to open public charging stations for electric vehicles.

India's EV policy has evolved over time, driven in large part by rising pollution levels, the country's green commitments, and a desire to reduce reliance on crude oil imports.

The list of GoI measures that are directly or indirectly intended to further EV adoption are:

• The scrappage policy, FAME (which is currently in its second phase).
• The PLI scheme for EV components
• Allowing sales of EVs sans batteries.
• Courting bigwigs like Tesla (high import duties notwithstanding)
• Incentivising domestic battery manufacturing.
• Amending the Model Building Bye-Laws to include charging station provisions.
• Liberalisation of the electricity distribution sector.
• Encouraging fossil fuel vending outlets to have EV charging stations.
• The National Electric Mobility Mission Plan.
• GST rate cuts on EVs and batteries.
• Tax incentives on EV auto loans.
• Permit exemption for battery-operated electric vehicles (BEVs) and so on.

The new rules allow any individual or entity to set up public charging stations (PCS) without the need for a licence. This means that (1) EV owners can charge their vehicles at home or at work at domestic tariffs, and (2) public and private entities can obtain Government land to set up and operate PCS on a revenue-sharing basis.

Furthermore, a national online database of all charging stations in the country will be compiled and made available via a web portal and mobile app.

Overall, the goal is to have one PCS in every three-square-kilometer grid in major cities and every 25 kilometres on highways within the next five years.

We can therefore, look for targets of Rs.17/19/24/31/46 in the coming days. Accumulate.

#Accumulate the shares of Global Vectra Helicorp Ltd near Rs.62/63 for targets above Rs.100. 

Under the new policy, the government will establish a dedicated helicopter acceleration cell within the Civil Aviation Ministry to investigate issues affecting the helicopter industry.

As part of the policy, there will be no landing fees or parking deposits for heliports or helicopter companies.

To begin, four Heli Hubs and Training Units will be established in Mumbai, Guwahati, Delhi, and Bengaluru, and helicopter corridors will be established in 10 cities and 82 routes across the country.

Surprisingly, the share is still languishing in the T - group when there is no volume in the counter. The stock exchange regulator is requested to look into the matter and take the necessary actions.

Financials:

According to BSE website the company has a CEPS (TTM) of Rs.41.70. The total income of the company came as Rs.87.26 crore in the September, 2021 quarter as against Rs.68.13 crore in the same quarter previous year.

The net loss of the company got reduced to Rs.1.66 crore as against a loss of Rs.11.07 crore, showing a huge improvement in performance on Q - o - Q basis.

Not only that, the operating profit margin (OPM) of the company almost doubled to 22.03% in September, 2021 quarter as against 12.85% in September, 2022 quarter. 

The net profit margin (NPM) of the company improved to - 2.33% in Q2FY22 as against - 16.99% in Q2FY21, showing tremendous improvement on Y - o - Y basis.