WINNING STROKES: THINK DIFFERENT

Candle Stick Chart of Punj Lloyd Ltd

Manappuram Finance Ltd as expected moved up today, after Religare Securities Ltd recommended the scrip as a buy for a short term target of Rs.25. CLICK HERE. According to my closed sources, who refused to be named, "There would be better numbers going ahead, as the price of gold is buoyant. In case the company wants to recover its loan amount and forced to sell the collateral, there would less hassles; as prices are much higher, than in June, when Bullion fell a two-year low. Value of the collateral going up always helps in the lending business".  Gold futures closed at Rs.30690.00 per 10 grams in MCX yesterday. Manappuram said in a March, 2013, stock exchange filing, declining gold prices may trigger an increase in defaults and an “under-recovery of revenue on certain gold loan portfolios.” The company’s gross bad debt rose 21% in the three months ended June 30 from a year earlier. However, this is expected to come down drastically now as the gold prices are above Rs.30, 000 per 10 grams. I think the scrip should now race towards Rs.31-32. The stock exchanges should remove 5% circuit limit for the stock or put a minimum 10% circuit limit. In these kinds of scrips 5%, circuit limit is simply a hoax. 

Allied Digital Services Ltd hit the buyer freeze in the late afternoon trade. The scrip should be moving towards the next target of Rs.22-23. The company would be one of the biggest beneficiaries of the fall in INR Vs USD. Those who are holding the scrip should average it on all declines. 

With INR recovering from all time lows, both the stocks VIP Industries Ltd and SAIL recommended as a strong buy moved up yesterday in the Indian bourses. While VIP Industries Ltd touched Rs.52.05 intraday, SAIL touched Rs.51.35. Both the scrips will gain further if INR appreciates more against the USD. Last week Indian  Foreign Minister, Salman Khurshid said in an interview to a business channel that the oil minister will on 16 September 2013 announce plans for lowering fuel consumption. This is expected to have a positive effect on the INR Vs USD.
Punj Lloyd Ltd was recommended yesterday around Rs.25.50-26, in the dying hours of the trade. Punj Lloyd showed a turnaround in June, 2013 quarter, when it reported a consolidated net profit of Rs.40.41 crore in Q1 June 2013, as against net loss of Rs.13.37 crore in Q1 June 2012. Punj Lloyd's consolidated net sales rose 10.8% to Rs.3000.26 crore in Q1 June 2013 over Q1 June 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) declined 1% to Rs.293 crore in Q1 June 2013 over Q1 June 2012. The company is expected to get benefits from the recent announcements from the government. Punj Lloyd, is a leading EPC conglomerate. Punj Lloyd's scope of work includes residual basic and detailed engineering, procurement, construction, installation, pre-commissioning, commissioning and project management for the sulphur block comprising 2 x 100 TPD Sulphur Recovery Unit including Tail Gas Treatment Unit, 60 m3/hr Sour Water Stripper and 250 TPH capacity Amine Regeneration Unit on a single point responsibility basis. Last month the company, was awarded a contract worth Rs.358 crores by Chennai Petroleum Corporation Ltd (CPCL) to build the Sulphur Block of Resid Upgradation Project at its Manali refinery near Chennai. The project is expected to be commissioned in December 2015. With this contract, the order backlog for the Punj Lloyd Group on a consolidated basis has gone up to Rs.21, 226 crores, reflecting the total value of non-executed order as on June 30, 2013 and the orders received after the day. The Group's strategy has been to expand its footprint outside India and today over 65% of orders represent the growing regions of Middle East, Africa, and Asia Pacific. While revenues show a reasonable increase in challenging global macro environment, margins are set to improve as the rupee appreciates further. n the coming months, the group is actively looking at retiring high interest debt. The latest book value of the shares of the company is Rs 115.88. The share touched its 52-week high of Rs.64.10 and 52-week low of Rs.20.25 on 09 January, 2013 & 04 September, 2013, respectively. At current value, the price-to-book value of the company is 0.21. The market cap of the company at the CMP of Rs.24.75 is only Rs.821.94  Cr, which makes it look very attractive for short term investments. Earlier, National Stock Exchange of India (NSE) had decided to exclude the company from the futures and options (F&O) segment with effect from only, 1st November 2013. Therefore, there will not be much sentimental impact on the share price, due to this episode, in September, 2013. 
Jai Prakash Associates Ltd reached my 3rd target of Rs.42 (intra-day it touched Rs.43.90), yesterday. The news of selling its cement division gave a spurt in the stock price. The scrip was recommended around a couple of weeks back at around Rs.31-32. 

Important

(i) I have spoken with the sources of Southern Online Bio Technologies Ltd, regarding the approval of the Bank Loans and the answer is that, the banks have approved the loans. Now in the plant at Vizag, all modifications have taken place and Raw Material supply & finished product contracts are signed and are in place. The unit has started trial production and within some months it will be ready for exports, which will give a tremendous boost in the earnings. The additional working working capital has been infused after a consortium of Banks approved the same. There are talks of interest rate waivers, like in case of Jai Balaji Industries Ltd and Suzlon Energy Ltd and the company hopes to get at least 200 bps, interest subvention in the total loans. The company's plant at Samsthan Narayanpur Village & Mandal, Nalgonda District with 30,000 Liters per day capacity  is working well and also its ISP division is also performing satisfactorily. According to my close sources,  even in Q3FY13, the company is expected to show better financial performance, on Q-o-Q basis and the Net Loss is expected to come down or in the EBDTA levels it could show positive performance. From Q1FY14, the company is expected to turn to black, as the Vizag plant would. start production. It is therefore a turnaround case and should be bought into in all declines, before it starts  hitting upper circuits once again. CMP: Rs.4.44.

(ii) Jai Prakash Associates Ltd, has again closed above Rs.86.90, which brings it again in the buy list. The cross--over has already taken place and the scrip is now above its both 150 and 200 DEMAs. The osciallators (both fast and slow) are in buy mode and MACD is turning bullish. Moreover, Mass Index and RSI are giving early signs of turning bullish. I reiterate a buy on the scrip at Rs.86.95, for a target of Rs.91--92--97.
(iii) Rolta Ltd closed at Rs.62.80 today, though it tried to clear its 50 DSMA intra-day a number of times. Rolta India Ltd. is a niche IT solutions firm based in Mumbai. The company caters to a whole host of sectors like Defense, Security, Oil & Gas, Power, Business Intelligence, Enterprise Applications, etc. The company derives a major portion of its revenue from the Indian market (Nearly 55% of total revenue comes from the Indian market, while the rest is spread out across various geographies like North America, Europe and the Middle East. Thus Rolta India Ltd., unlike its larger peers, is well insulated from foreign currency risks. Also, since most of its clients are government-based organizations, the company has strong assured revenue growth prospects going forward), and the rest from its operations across various countries around the globe. 

Rolta India Ltd has leadership position in the Geospatial Imaging and Engineering Design & Automation Segments: with nearly 70% market share in the Geo-Imaging and Mapping Industry and 90% in the Engineering Design & Automation market in India, Rolta India Ltd. is well poised to consolidate its leadership position in these segments on the back of key capital expenditures (amounting to nearly INR 16 bn) and regular acquisitions that have helped to develop niche capabilities to service these sectors. The company’s decision to move away from low-end services business to high-value solutions based on IP, augurs well from the company and we have already seen that, the order book has swelled from Rs.22,062 million (Rs.2206.2 Cr), the strongest growth in the last five quarters in Q1Fy13 to Rs.2500 Cr in Q2FY13. I therefore, feel that the scrip is expected to be multi-bagger in the coming days, when the world economy, especially the US (or whole of North America) and Europe, has started to do well. India too off-late has started to give more stress in developing IT infrastructure. Rolta Ltd having an order book of around Rs.2500 Cr, does look attractive as a positional buy for 2-3 months perspective. Accumulate at Rs.62.80--63, for a target of Rs.82, in before the Union Budget, 2014.

WINNING STROKES: THINK DIFFERENT

Late Afternoon Call on IRB Infrastructure Ltd at Rs.120, saw it touch Rs.124, intra-day. Today was a great chance to pick up this stock, due to some special reasons. Join either my Paid Service or my Brokerage House to get full details. 2nd call of the day was a buy on Jai Prakash Associates Ltd at Rs.88. Jaiprakash Associates Limited, a member of the promoter group of Jaypee Infratech Ltd ("JIL"), earlier today informed the BSE that it wished to offer 27,864,584 equity shares of face value Rs.10 each of JIL for sale to meet the minimum public shareholding requirements as issued by SEBI ("OFS Shares"). In addition to the OFS Shares, the Seller may also sell up to 70,619,430 equity shares of face value of Rs. 10 each of JIL in the OFS (the "Additional Shares" and together with the OFS Share, the "Shares"). This has nothing much to do with Jai Prakash Associates Ltd and hence those who bought today, should see their share price appreciate in the coming days. 

Crest Animation Studios have fallen to around Rs.12.90, now it is time to accumulate the scrip, when there is a  mayhem going in the mid and small cap counters. Similar is the case with United Breweries Holdings Ltd at Rs.9 5.50. Similar is the case for Jai Balaji Industries Ltd at around Rs.34.

Where will be Nifty in the next few trading days? Should we accumulate more of Southern Online Bio Tech Ltd on all declines? To get to know all these  join my Paid Service or my Brokerage House. In these kinds of markets, when even it becomes difficult for the EXPERTS to make money, it could be suicidal if you are a NEW COMER and want to play in the markets on your own. When you go for the service of SPECIALISTS in every field, why in Stock Market, you want to prove that you are big, EXPERT. You prove yourself in the field of your specialty nor in some stray field. One or two times you might be right, but in the long run, more than 90% of the novices lose money in the markets. Do, you want to  Join their team of losers or want to make hassle free money from the markets? If you answer is positive then Join my Brokerage House and be in touch with me, 24x7 and make money over a period.

WINNING STROKES: THINK DIFFERENT

Southern Online Bio Tech Ltd  hits another buyer freeze today. The market cap of the company is still very low and is placed at Rs.16.68 Cr, which is even less than Q2FY13 revenues, forget about the whole year. For the whole year, FY12, the total revenues is Rs.91.51 Cr which is more than 5 times the current market cap of the company. With the interest rate coming down, the company is expected to retire its high cost debts with the low cost ones. So, overall, we have a positive stance on the company, which is into making of bio--diesel. 

Suzlon Energy Ltd, as expected moved up and closed near its day high. On the last Friday, I, asked all to accumulate the scrip, and those who have done that on that day and today in the early hours, must be sitting up with huge gains. If you still do not know how to play a turnaround story, after making money in Ennore Coke Ltd, then God help you. These are blue chips stocks and whenever one gets the opportunity, they should accumulate then for short term targets.
With the interest rate coming down in the near future, the time has come to think of the companies who are making building materials, eg, those from the Steel, Cement, Glass, Sanitary Ware, Plastics (Doors and Buckets), Plywood, etc. With Ashapura Minechem hitting buyer freeze today, and OMDC, showing good movement, I am hopeful that soon, Jai Balaji Industries Ltd, will cross Rs.42 and Prakash Industries Ltd crossing Rs.57. 
I have recommended two stocks from the IT space (as the space has suddenly turned bullish) and have a good news on another one, join my Paid Service, or my Brokerage House, to get to know, which are those scrips and what to do with my other recommended counters. That markets would move up today, has been  predicted by me yesterday, in Facebook, in response to a report in Hindu Businessline. You can still find the report on my profile. 

Market Mantra

Morning Call: Buy Tulip Telecom Ltd at Rs.35.50--36,  hits the buyer freeze in the morning trade. The bad days are perhaps over for the company and now we can see a steady upmove in the coming days. The target and other details is only for Paid Members and for those who are trading through my recommended brokerage house.

IRB  Infrastructure Developers Ltd touched Rs.132.50 today. The stock is headed towards Rs.165--170, in the coming days. The fundamentals of the company are too good.
Southern Online Bio Tech Ltd  hit another buyer freeze in the opening trade. This has now become a regular habit. My congratulations to those who have believed me, and invested in this scrip.
Prakash Industries Ltd today moved to  Rs.51.45, before cooling down a bit.  When the outlook of the steel has changed and there would be a cut in the interest rate this quarter, to boost infrastructure spending, the demand for steel is set to go up. In such a circumstance, companies with proven track record as  Prakash Industries Ltd are set to do well.
Today, ARSS Infrastructure Projects Ltd, touched Rs.49.85. This is also another story of debt restructuring. Hence I am expecting it to  hit continous Uppper Freezes in  the coming days, especially in the view of interest  rate subvention and cutting of repo by the RBI in this quarter.  The company's Q3FY13 results is expected to be a tad better  than Q2FY13. My short term target for the scrip is Rs.60-65.

WINNING STROKES: THINK DIFFERENT

Southern Online Bio Tech Ltd hit another buyer freeze today, at Rs.2.90, in the opening trade. Today it went up with good volumes, which means lot of persons (investors/traders) are entering the counter. Now, it is pertinent to mention here that, the price of  bio-diesel is kept artificially low in India--price of bio-diesel is almost half of the subsidised fossil, diesel. Hence, there are ample chance that this price is expected to increase, in the coming days; especially after Mr.Kishor Goswami and Hari Kanta Choudhury of the Department of Humanities and Social Sciences, Indian Institute of Technology, Kharagpur, appealed to the Government to think seriously in favour of raising the market price of jatropha for sustainability of the industry in the North East region. The price of Jatropha cannot increase  unless the price of Bio--diesel increases and hence, the government might now seriously think of increasing the price of Bio--diesel in India. This augurs well for the company. Moreover, the Mysore City Corporation (MCC) has started using biodiesel, an eco-friendly fuel, for running some of its vehicles. The Biofuel Information and Demonstration Centre, set up by the Karnataka State Biofuel Board with the support of National Institute of Engineering (NIE) on the NIE campus, will provide biodiesel to the corporation. CLICK HERE. Though biodiesel fades in comparison to the performance of gasoline, western countries are increasingly choosing the fuel. In these days, when crude trades over $80 a barrel, biodiesel is economical. Secondly, in the US, the states like California have already begun incentivising use of alternative fuels that are low in carbon emission. Biodiesel, an equivalent to crude derived diesel, is processed from biological sources. Southern Online Bio Tech Ltd generally makes its biodiesel from Jatropha plant with overseas technology. The plant derived biodiesel can be used in normal diesel engine vehicles without modifying them. Biodiesel produces between 40-60% lesser carbon dioxide emission but emits more smog forming residues. Vehicle manufacturers in Europe, who were initially vary of biodiesel, are now more willing. European auto makers like Scania now say that their vehicles can run on 100% biodiesel. 

A scrip in the realty and infrastructure space was recommended to the Paid Service members today. The scrip hit the buyer freeze before coming down a bit when the market cracked in the  late hours. The price of the scrip is Rs.24.95 and FY12, EPS is Rs.8.38 (standalone). What is the name of the scrip?

Southern Ispat and Power Ltd hit another buyer freeze on the opening trade. I think another two mining stories, Jai Balaji Industries Ltd (CMP: Rs.36.30) and Prakash Industries Ltd (CMP: Rs.47.95) will soon pick up steam. 

SEL Manufacturing Company Ltd moved to Rs.4.79 today before cooling a bit. The textile sector will move from the next month.
My recommended Tata Steel Ltd today touched Rs.436, before cooling down a bit. If  you remember the scrip was recommended around Rs.378, with a price target of Rs.397 and Rs.425, which has long been achieved. On the other hand SAIL touched my first target of Rs.91 today. This scrip was also recommended around Rs.81-82.

Prakash  Industries Ltd: Banking on Steely Recovery

Prakash Industries (PIL) reported a 37.8% yoy top-line growth in Q2FY13; however, its operating margins declined mainly due to higher input costs.
Higher realizations drive top-line growth: PIL’s net sales grew by 37.8% yoy to Rs.631 Cr mainly on account of higher realization across product categories. Gross realization of structural steel/TMT and wire rods increased by 12.4% and 7.8% yoy to Rs.38,557/tonne and Rs.40,409/tonne, respectively.
High costs dented PIL’s profitability: Raw material costs increased by 44.9% yoy to Rs.444 Cr due to increase in prices of inputs. EBITDA margin slipped by 367 bps yoy to 13.1%; however, EBITDA increased by 7.7% yoy to Rs.83 Cr. Interest expenses stood at Rs.13 Cr compared to Rs.3 Cr in Q2FY12 and depreciation expenses also increased by 44.7% yoy to Rs.25.72 Cr. Hence, net profit decreased by 18.6% yoy to Rs.44.57  Cr in Q2FY13 as against Rs.54.81 in the same period previous year.  .
Outlook and valuation: PIL has slowed down its power expansion plans; nevertheless, we  can expect PIL’s EBITDA to witness a strong growth from FY14 once the benefits of increased capacities of sponge iron and power commence meaningful production. Hence, the scrip can be purchased at the CMP of Rs.49.95, for a short term target of Rs.61-62.

Market Mantra
Excerpts of my morning inptus to the Paid Member and also to those who are holding accounts in my recommended brokerage house/s

Twilight Litikta Pharma Ltd hits the buyer freeze in the opening trade. The scrip was recommended yesterday as a must buy. 

Buy Gammon India Ltd at Rs.41--41.25, T--Rs.48, SL--Rs.38.40. This is one of the scrips in the infrastructure sector, which gives a steady return over a period. Most of the stocks in the infrastructure sector are doing well and this should also give steady returns over a period as it is on a major uptrend.
The investors are suggested to take positions in Suzlon Energy Ltd once again at around Rs.19 and hold for a target of Rs.22. The scrip has long consolidated around the current ranges and should now break out of the current trend.
Buy Prakash Industries Ltd at Rs.51.70--52, T--Rs.60-62, SL--Rs.46. Most of the steel counters have started to do well on optimism from China. Hence buy this scrip. Those who are holding Jai Corp Ltd are expected to keep holding as the scrip could be touching Rs.71-72, in the coming days.
Please book some profits in Reliance Power Ltd at around Rs.102--102.45 and wait for it to close above Rs.102, to take fresh positions for a target of Rs.106--107-111. The scrip could consolidate around the current ranges before moving up.
Those who are holding Tulip Telecom Ltd should accumulate the scrip in all declines. The scrip  hit the buyer freeze today, before cooling down a  bit. If it came out of the circuits today, then it is time to buy few more and keep holding.
Now what should one do with Nifty_Futures? Any view? Join my Paid Service or my brokerage house to be ahead of others. 

After Market Opening Chart Check

 In line with expectation, market traded above 5850 yesterday and closed at 5889 with a net gain of 18 points. Although Nifty traded range bound, shares continued to out perform at individual capability.
Market is expected to trade with positive bias today as is seen from the morning trade. Nifty remains strong above 5800 and a rise above 5900 will add more strength to it. More then 250 points rise in a week and a close above major resistance area of 5800 this week can be considered as resumption of uptrend after an intermediate corrective phase. Nifty has close above this resistance after 2 years period, which is a clear sign of strength. The traders are suggested to keep holding long positions and buy good scrips at reasonable valuations. 

Buy Prakash Industries Ltd at Rs.53, T--Rs.62, SL--Rs.47. The scrip is into steel and mining. Some days back there were some report in Financial Times that there is a Sudden Turnaround in Chinese Property Market:   In October, new house prices in CHINA rose in 35 out of the 70 Chinese cities tracked by the national bureau of statistics, up from 31 in September. Prices fell in 17 cities, and remained unchanged in 18 cities, including Shanghai. It is a sharp turnround from the bleak predictions for a downturn or even a housing sector crash that have dominated the news until recently. Just two months ago, the World Bank warned that a “property market correction” was one of the biggest risks facing China. The implications of the market confounding expectations by strengthening rather than weakening would be huge for both China and the world.  This is expected to boost the sentiment of steel and other metals in the coming days. Prakash Industries Ltd is known to behave positively in Bullish conditions. In view of this I have recommended this scrip. 

Those who are holding Pantaloon Retail Ltd (CMP: Rs.231.70) and V2 Retail Ltd (Rs.15.70), since a long time are suggested to book profits (or at least partial) in view of too much uncertainty in the section. Though it is almost certain that UPA would win the vote of confidence, but since when you are making sure shot profits, what is the use of taking so much risks? However, if you are willing to take the risk and wait till the voting, then if there is a negative outcome, kindly sell the scrips immediately, without waiting for a minute.
I think now Manappuram Finance Ltd has consolidated around the current price ranges and is now ready to move up. Buy the share at around Rs.35.50, T--Rs.42, SL--Rs.31. This is in view of the Banking Regulation Act which is expected to be amended, in this session of Parliament. 
Note: This report was posted on the Paid Blog, in the morning. You can also get these kinds of  updates by  joining either  my Paid Service or my Brokerage  Houses.

WINNING STROKES: THINK DIFFERENT

Jai Balaji Industries Ltd which was asked to be accumulated on my yesterday's morning note to the Paid Service Members, hit the buyer freeze. But what is the reasons for the same? Any idea? To get all such details you need to join the Paid Service or my Brokerage House. 

Yesterday, SEL Manufacturing Company Ltd,  moved up in tandem with the improvement in the sector. The company is becoming massive day by and day and in any case Rs.5.40 cannot by any wildest sense represent the share price of the company. To diversify, its business, it has now entered into Hotel and Aviation Sectors too. Its IPO had  upper band of Rs.90, in 2007. SEL Manufacturing Company Ltd of the R S Saluja Group announced an initial public offering (IPO) of 41,38,410 equity shares of Rs.10 each through 100% book-building process. The price band was fixed at Rs.80-Rs 90 per equity share.This The vertically integrated textile company intends to expand its spinning capacity to 1 million spindles with in the next 24 months from 74,256 spindles,which it intended during the time of IPO. Therefore, to make some solid bucks or 3-4 times returns in the next 3-4 years please do not hesitate to take positions in the  shares of the company. Moreover, since the promoters' holding is less, there is a chance of HOSTILE TAKE OVER BIDS like that happened in some of the companies listed in the BSE. It could also be taken over by some established players by clandestinely cornering its shares through large scale open market purchases. The market cap is only Rs.179.26 Cr at the current price. 
Kohinoor Broadcasting Corporation Ltd which was asked repeatedly to be accumulated during the last couple weeks, to the Paid Service Members hit the buyer freeze yesterday, in the mid afternoon trade. Where is the share headed? Any idea?
Anant Raj Industries Ltd which was strongly recommended around Rs.44 and Rs.51 strongly and asked to be accumulated on all declines is near its 52-week high price of Rs.79.95. Congratulations to all those who made money in the scrip. 
Accumulate Shree Asthavinayak Cine Visions Ltd before Dabangg 2, is  released in December, 2012. It;s Star Cast: Salman Khan, Sonakshi Sinha, Sonu Sood, Prakash Raj, and is being directed and produced by Arbaaz Khan; Banner / Distributor: Shree Ashtavinayak Cinevision Ltd, Arbaaz Khan Productions. This is a chance to lap up the scrip at rock bottom price of Rs.2.29--2.31 before December actually beging, so you have just 2 months time to collect the funds and invest in the scrip. The initial public offering of Shree Ashtavinayak Cine Vision Ltd in 2006, was subscribed by 6.04 times on the closing day. Bids were received across the price band of Rs.140 - Rs. 160 (Rs.10, Face Value at that time) a share. The QIB portion at that time was over-subscribed by 6.13 times, the non-institutional investor segment by 10.67 times and retail 3.94 times. Therefore, this "Rasogolla" should be lapped up at the earliest. 
The investors should accumuulate the retail counters as FDI in retail is expected to change the whole sector. V2 Retail Ltd, Pantaloon Ltd, Shoppers Stop Ltd, etc, should be accumulated on all declines.  
McNally Bharat Engineering Ltd was asked to be accumulated to the Paid Group at around Rs.92-93, yesterday it touched Rs.116.30. So, where is the stock headed, as this sector has started to perform?
Where is Nifty headed in the next few days? How are insurance reforms going to affect some of the sectors? What to do with the Banking Counters? Join my Paid Service or my brokerage house to get an idea on the same. Those whose accounts have been opened in my brokerage are requested to deposit the funds and start trading immediately to get maximum from the markets.

Prakash Industries Ltd: Bright Future Ahead

Prakash Industries Ltd (CMP: Rs.63.55) is coming out with consistent set of good numbers since the last few quarters. If we look at the March, 2012, quarter results of the company, then we would find that the net sales jumped to Rs.629.81 Cr as against Rs.401.83 Cr in the same period previous year. Inspite of higher expenditure and higher interest cost, the PBDT of the company for Q4FY12 came out to be Rs.100.99 Cr as against Rs.88.22 Cr in the same period previous year. The net profit of the company (inspite of higher depreciation), for Q4FY12 came out to be Rs.76.11 Cr as against Rs.72.09 Cr in the same period previous year. The EPS of the company for the March, 2012 came out to be Rs.5.66 as against Rs.5.36 in the same period previous year. The EPS of the company for FY12 came out to be massive at Rs.19.94. I am expecting the stock to cross Rs.100 in the near future, especially in the view of an QE3, from Uncle Sam within a couple of months. If you remember, last time, I recommended the stock at Rs.45-47. After that, the investors, we repeatedly, asked to accumulate the scrip on all declines. The first target of Rs.62, has long been achieved. Today it broke out of the long term pattern on the Candle Stick Charts and surged ahead.

WINNING STROKES: THINK DIFFERENT

My recommended IRB Infrastructure Ltd moved up to Rs.126.40, before closing at Rs.125.60. The company came out with superb set of numbers for the Q1FY12. Join my Paid Service or my recommended Brokerage house to get a direction in the markets. Those who are joining the brokerage house with Rs.2 lakhs now, the Paid Subscription is free for them for 2 years. Those who have filled the form and is waiting for the Opening of the Equity and Commodity trading accounts, are requested to make arrangement for the funds in between, so that we can start immediately. Those whose accounts have opened are suggested to deposit the funds at the earliest.Thanks to all, for your overwhelming response.

I have my taken position in Anant Raj Industries Ltd at Rs.48. I am expecting the scrip to cross Rs.56 in the next few trading sessions. If the RBI goes for a rate cut (which is most likely) tomorrow, to give a boost to the economy, then most of the real estate scrips will shoot. Rising interest rates had been a cause for concern in many households servicing existing loans or planning to borrow money. I however, do not think that there is any chance of a CRR cut. The CRR or Cash Reserve Ratio is the proportion of funds that banks require to deposit.

Vijay Shathi Builders Ltd, one of my strongly recommended counters, touched Rs.19.43, before closing at Rs.18.93, up more than 4% from yesterdays' close. The stock is expected to give superb returns in the next few weeks.
Now start accumulating Prakash Industries Ltd at around Rs.59-60, for a target of Rs.72. The Q1FY13, results of the company according to my sources are expected to be good.  The BOD have recommended a dividend @ 10% i.e. Re.1 per equity share of face value of Rs.10 each.

Prakash Industries: Further Upswing Expected

If you remember, Prakash Industries Ltd was recommended some weeks back at around Rs.45.5-46. After this stock moved many times to near Rs.51, and then falling back again. However, after a break-out at Rs.53, it has started  a one-way journey, towards north. The momentum indicators are strong and the scrip could be heading towards Rs.72--90, in the coming days. The investors are suggested to keep adding the scrip on declines keeping a SL at Rs.56.80. 

Market, rupee surge as FIIs turn aggressive buyers

Clarity on GAAR and positive signals from the European union (EU) pushed up the equity market on Friday. Analysts say that the mood was upbeat after a volatile week. Thanks to these developments, foreign institutional investors pumped in more than half a billion dollars today. The NSE Nifty ended up 2.5 per cent (130 points) at 5,279, while the BSE Sensex was up 2.6 per cent (439 points) at 17,430.

The rupee also appreciated sharply on Friday (gaining over a rupee from Thursday’s close of 56.80 to a dollar) and closed at 55.67 to a dollar.
On Thursday, the Government set out the draft guidelines for General Anti-Avoidance Rules (GAAR) which would exempt foreign investors from retrospective taxes and give them concession on P-Notes (Participatory Notes). This apparently made investors believe that the Finance Ministry was now looking at taking positive measures to kickstart the investment cycle, said analysts.

“With the statements on GAAR, the presumed hostility towards FIIs seems to be thawing. There is now an expectation that the Prime Minister, Dr Manmohan Singh, as the acting Finance Minister, will take swift decisions,” said Mr Prakash Diwan, Chief Portfolio Strategist, Wealth Circle. FIIs were net buyers at Rs 3,047 crore on Friday. Domestic institutions were net sellers at Rs 251 crore. Retail investors, on the BSE, booked profits and were net sellers at Rs 1,089 crore.

MAURITIUS ANGLE:

According to Mr Diwan, only about 18 per cent of the foreign capital flows into India is channelled through Mauritius.

The Euro zone leaders agreed on a deal to stabilise Europe’s debt markets and recapitalise its banks to ease the funding strain on Spain and Italy.

Due to this, European indices were trading higher by 2.4 per cent when the Indian bourses closed. Among the Sensex stocks, the top five gainers were Jindal Steel (up 8.8 per cent), Tata Power (5.8 per cent), ICICI Bank (50.3 per cent), BHEL (4.9 per cent) and Sterlite Industries (4.9 per cent). Coal India was the only stock in the negative, down 0.14 per cent. On the BSE, the capital goods, power, banking and metal sector indices were up more than three per cent.

DOLLAR SELLING:

“Increased dollar selling in huge lots from the foreign banks and steep rise in the euro also led to the rupee making gains. In addition, month-end closing kept oil importers off the markets,” said a chief dealer of a nationalised bank. The rupee consistently gained after touching an intra-day low of 56.66. It opened 19 paise higher at 56.61 on the inter-bank market.

Courtesy: The Hindu Business Line

WINNING STROKES: THINK DIFFERENT

Morning BUY call on Nifty was a read money spinner as the Nifty moved from around 5098 to close at 5165. Those Paid Members and Free Members (in Yahoo Group--SumanSpeaks) who made money in my call, are congratulated. Join the Paid Service, or join my brokerage house and make money. Play in the Nifty futures and make money everyday or carry your position for days, by only paying interested of 1.5% per month. NO SELLING OF YOUR MARGIN POSITIONS/HOLDINGS BY THE BROKERAGE HOUSE (this is a new scheme). The brokerage is at par with www.icicisecurities.com. The subscription to the Paid Service is set to increase further from the 1st November, 2012.  Those who will enroll now with get 30% discount on two years, subscription amount (Rs.7000x2 minus 30%= Rs.9800). Those who will enroll in my brokerage house will get further discounts on my subscription (Minimum investment: Rs.2 lakhs). 

My free call on Suzlon Ltd also did well. The stock moved up by more than 1.7% in the Futures market to close near the days high, indicating that the bulls have started to enter the scrip in bulk. Of the total shares trade almost  one third (1/3 rd) was through delivery based trading. The company has done lot of restructuring of its operations during the last few quarters and it is only time that the scrip would move up. My immediate target for the scrip is Rs.22 and after the clearance of the FCCB issue the scrip could race past Rs.27--29 mark in the coming days. 

My free call on Voltas Ltd moved to Rs.103.85 before closing near the days high, indicating the strength of the upmove. The next target for the scrip seems to be Rs.110-112. The company came up with superb set of numbers  for the Q4FY12. 

One should keep accumulating Prakash Industries Ltd after a consistant performance from the company during the last few quarters. Its Q4FY12 results were also good. The scrip of the company which has mines is trading at some ridiculous valuations. I am looking for a target of Rs.62--63 in the next few trading sessions.  

My recommended Lanco Infratech Ltd moved above Rs.14, once again---this scrip was repeatedly recommended in this blog from the price around Rs.13 to way below around Rs.11.60. I think most of you have made some profits on the scrip. 

Today my recommended Sintex Industries Ltd around Rs.55, closed above Rs.60. Those who have taken the scrip at lower levels should book some profits. 

Market Mantra

Excerpts of my morning mail to the Paid Service members: As expected, market traded with a weak bias yesterday. A gap down opening was followed by a range bound and dull trading session. The  Nifty traded within a narrow range of about 20 points for entire day between 4890 and 4910. However, last hour buying during expiry pulled it to 4950 level, finally settling at 4924 with a net loss of 26 odd points.
Nifty has lost 315 points within a month. This itself shows...........(For Paid Members)......XXX level is giving support......Chances of a rally to 5125-5150 level cannot be ruled out in this week. The Nifty could fall back to 4865-4850 levels, before starting to move up again. Till now, HANG SENG INDEX & CHINA SHANGHAI COMPOSITE are trading in the GREEN. Yesterday, both the FTST & CAC also closed in the GREEN.
The CONTRA TRADERS can get into Nifty longs around 4850--4830 (if it falls around this  levels) for a target of 4900--4930.  
Mid afternoon call to the Paid Group members: Premium Members buy Mini_Nifty at 4857, T--4930, SL--4820-4800 (exit). The first target of Nifty short has been achieved and the Paid Members were asked to book profits. 
Please, keep accumulating Sintex Industries Ltd (Rs.52.50) and Prakash Industries Ltd (Rs.47.50). If the RBI goes in for a rate cut in the June, 2012 meet, then the stocks in the construction will be benefited the most. Also, the stage is all set for the rate cut, as I think with this kind of GDP numbers, inflation is sure to fall below 7%.

Market Mantra

Prakash Industries Ltd was recommended to the Paid Group members and also in Facebook, today, at Rs.49.50, T-Rs.57, SL--Rs.46. The company came out with superb set of numbers for the Q4FY12 and also declared a dividend of 10%. The sales of the company were up by 27% at Rs.2107 Cr (~3.12 times its current market cap. Book Value: Rs.116.54), the EBIDTA came at Rs.368 Cr, PAT at Rs.268 Cr and EPS for the FY12 came at whooping Rs.20. Prakash Industries Ltd is a business house with interest in steel, mining and power. Over the last 6 years, the net sales have grown from Rs.800 Cr in 2006 to Rs.2107 Cr in 2012 and EBIDTA has gone up from Rs.153 Cr im 2006 to Rs.368 Cr in 20-12, registering a CAGR of Rs.17.5% and 15.5% respectively.
Prakash Industriers  Ltd is operating its integrated Steel and Power plant along with capitive mines in the sate of Chattisgarh with facilities for Sponge Iron, Steel Billets/Blooms, Ferro Alloys along with power generation. As a step towards further integration, the company has also set up a facilities to manufacture Wire Rod, HB Wire, TMT bars and Structurals which puts fort the concept of forward integration in the company to give highest value addition.  Prakash Industries Ltd has always emphasized on backward integration to ensure uninterrupted supply of quality raw materials. Captive coal mine of the company in the state of Chattisgarh is already in operation with modern methods of mining, resulting in operational excellence. The performance of the company has been eventful during the FY12. The company has achieved its first milestone towards its plan to set up 635 MW power capacity by successfullly commissioning the first phase of 100 MW. It has further stepped up its level of integration by settting up a Sponge Iron kiln which shall contribute substantially towards cost savings. With addition in capacities, the company has achieved highest ever production in steel & power.
Future Outlook:
Further expansion in the Sponge Iron Capacity by setting up an additional module is already under implementation. In addition, the company is also  taking up expansion in its Steel and Ferro Alloys capacity to further optimize its level of integration. On the power front the balance capacity expansion shall be taken up in a phased manner in due course of time. The iron ore mines allotted to the company are  under advanced stages of clearances, with the Government departments, which once operational shall give further boost to the profitability of the company in the coming days. At the CMP of Rs.49.50--50, it is a steal. 

Sintex Industries Ltd has moved up by 1% today. The stock is headed much higher and the recommendations to buy the scrip has come from right and left. 

WINNING STROKES: THINK DIFFERENT

Jai Balaji Industries Ltd hit another buyer freeze in the opening trade, after lot of positive developments took place in the company. I have placed a report on the company at: www.sumanspeaksplus.blogspot.com. 

Nutech India Ltd which was recommended last week, came down today, after some repeated circuits in the BSE. Today, most of the Paid Members, were asked to exit the counter, after getting good return on their investments--the stock hit the lower circuits. Therefore, join the Paid Service, to get the buy and sell triggers. 

Allied Digital Services Ltd which was recommended last week around Rs.20.50-21, hit the 20% upper circuits today. Congratulations to all those who bought the scrip on my suggestions. It seems bad days are over, for the company with  Q4FY12. We can now look forward for better days ahead.

Today, Paid Service members were asked to accumulate Prakash Industries Ltd at Rs.45. The stock is expected to cross Rs.52-53, in the coming days, as the steel price firms up. The performance of the integrated steel plant of the company, with capacities for Sponge Iron, Steel Melting, Wire Rods, TMT Bars. structural, Ferro Alloys and Power Generation  should improve in the coming days, as the steel cycle starts tracking higher trajectory. Moreover, to mitigate the cyclic impact of the steel industry, the company is setting up 625 MW power plant in a phased manner. The 1st phase of 125 MW is under advance stage of implementation and is expected to be completely operational by Q2FY13 or earlier. The company is also planning to expand its steel capacity in the coming days, for achieving, higher level of integration. It is also integrating backwards to ensure constant supply of raw materials by getting into captive iron ore mining. All of this, along with the capacity addition in the sponge iron and power generation are expected to improve upon the operating margins of the company in the coming days. Invest in bulk and keep holding. CMP: Rs.44.60. 
Now Join my Brokerage house and get lifetime Subscription to the Paid Service, free from the 8th year of joining. The brokerage is at par with ICICI Securities Ltd, and hence those who are trading with them can safely migrate here. The price of Paid Package will be further hiked from 1st October, 2012 and hence please available of the current package at the earliest. For joining my profit sharing arrangement, through my brokerage house, the minimum capital required would be only Rs.2 lakhs (for others it is Rs.5 lakhs).

Market Mantra

SUZLON ENERGY is planning to raise $300 mln-$500 mln through an overseas bond issue to repay debt. The stock is one way up today............Cheers!! Today it touched Rs.23.15. Now  buy State Bank of India Ltd at Rs.2142-2155, T--Rs.2180-2200 SL-Rs.2134

Market continued to trade within a range yesterday. Nifty made an intraday low of 5196 and a high of 5216 in Saturday’s special trading session. However, the undertone was positive and Nifty closed at the high of the day with a net gain of 19 odd points. Market is moving extremely range bound within a small range of 75 points between 5160-5225 since last five trading sessions. It appears that the market waiting for a trigger. In such a scenario, it may continue to be volatile and unpredictable within this range unless breaks either side. However, till the mid-afternoon the Nifty is trading with a positive bias today and is trying hard to break the stiff resistance at 5270---5295 range. I think with virtually no marked negative news, Nifty could amble past this range comfortably during the next few trading sessions. In case of Nifty Futures, please put a SL of Rs.5260 and keep holding. There could be another round of Quantitative easing in the US and this is expected to bring a massive rally in the metals and other commodity counters once again. Today, I received lot of recommendations to buy Copper. 
Hindalco Industries Ltd today moved to Rs.21.90 before cooling down a bit.  The stock should trade much higher in the coming days. 
Jai Prakash Industries Ltd recommended some days back to the Paid members around Rs.72, today touched Rs.74.75. The next target for the scrip is Rs.77--82. However, those who have bought earlier can book some profits in the counter.

Sanguine Media Ltd hits the 7th consecutive buyer freeze in the opening  trade. According to my unconfirmed sources, the company is taking lot of measures to change the business model. It has also removed most of the earlier staffs in the office.

WINNING STROKES: THINK DIFFERENT

Hindalco Industries Ltd recommended around Rs.118--119, moved to Rs.120.20 before closing Rs.119.80. The prospects of aluminum sector looks bright in the coming years. Why? This portion is only for the Paid Service Members. 

Sanguine Media Services Ltd hit another buyer freeze on the opening trade. I think some of the things which I heard from unconfirmed sources, seems to be correct. The company is talking lot of measures and is set to change a bit of the business model.   

Jai Balaji Industries Ltd, closed in the Green today. Any turnaround in the steel cycle will be positive for the company. Also, note that it is also a power producer---this much for today, the rest of the details can be disclosed at the end of next week, as I need to confirm some of the information, I received from my close sources. Of course, Paid Members will get any further information much earlier. 

At last Suzlon Energy Ltd moved to Rs.21.80, after it touched Rs.22, at the end of the trade. It is to be noted that both the FIIs and DIIs have increased their stake in the company, while some fools went in for distress selling. One from this group, was comparing it with Pentamedia Graphics Ltd....Huh!! Some, people sometimes like to imagine that a Swine/Pig is just an elephant without a trunk!! There should be a limit to imagining nonsense. 

Today's morning call Jai Prakash Associates Ltd (JP Associates) moved to Rs.73.20. Why was the call given and where will it move during the coming days?

Reliance Industries Ltd closed in the negative after the Paid Service Members were asked to exit the stock at the cost price or at a little higher price. 

Country Club India Ltd is steadily moving up, after forming a bottom of sorts around Rs.6.5-6.6 ranges--today it closed at Rs.6.84 up 3.95%. Those who have accumulated the scrip on my suggestion would make good money in the coming days, as the company completes the 1st phase of expansion Q3FY13. Those people who do not have patience to follow a story will never be able to make money from the markets at a given period. This is from my experience of last 16-17 years in the market.

Now it seems the bear cartel have shifted to Kohinoor Broadcasting Corporation Ltd, as it hit the lower circuit. However, you can make use of this opportunity by picking up the shares in all declines. It is to be noted that NRIs alone hold 2.35% of the shares of the company while, corporate bodies hold around 10% of the shares of the company. The company has launched channels and its solar energy projects are going on in full swing. In such a circumstance, the shares of the company cannot trade at 1/10 of its face value. It is trading at a ridiculous market cap of only Rs.10.03 Cr. I think it is is again becoming a takeover candidate, unless the promoters quickly increases their stake. I have to find out if they have recently increased their stake or not, as we do not have the latest shareholding pattern of the company in the public domain. If you remember, I had given a buy call on IVRCL Infra at Rs.29-30, based almost on the same assumptions. If you also can recollect, I had given a sell call on the same scrip at Rs.139, when it tanked to below Rs.30. Kohinoor Broadcasting Corporation Ltd could repeat this story, as it is not too difficult to bring a fund of Rs.10 Cr and buy out a growing listed company. So, if any such thing happens then those who are having good holdings of the company would become millionaire much earlier.
Accumulate Prajay Engineers Syndicate Ltd in all declines---the promoters have slightly increased their stake. If you look at the share holding pattern closely then you would find that FIIs hold 8.57% of the shares of the company. The corporate bodies hold 18.17% of the shares of the company while, Directors & their Relatives & Friends hold 14.83% of the shares of the company. Today it closed at Rs.6.76 at the upper circuits. The book value of the shares of the company is Rs.95.75 and its equity capital is only Rs.69.94 Cr. A company which has started a 3-star hotel and has huge land holdings cannot trade at this price. Moreover, the market cap of the company is at only Rs.47.28 Cr, which is simply absurd, when its land holding is more than Rs.500 Cr, plus add the cost of setting up a 3-Star hotel. Don't get guided  by others, use your own brain for investing.