WINNING STROKES:

Computer Point Ltd recommended to the Paid and Free Groups only some days back with a target of Rs.7--Rs.8 hit the buyer freeze: My this week's "Quickie Calls" to the paid members, Powersoft Global Solutions Ltd and Ortin Laboratories Ltd hit the third consecutive buyer freezes: My recommended Su-raj Diamonds Ltd rose today also when the Sensex tanked more than 300 points: My Recommended IKF Technologies Ltd and Southern Online Bio Technologies Ltd hit the buyer freeze, latter cooling down a little at the end of the day. Both are bio-diesel stories but Southern Online Bio Technologies Ltd is also into IT sector. It is thinking of moving into content development: Indian Hume Pipe recommended to select few paid members ealier hit the buyer freeze: My earlier recommended Tilaknagar Industries Ltd, VBC Industries Ltd, Haldyn Glass Ltd, Fluidomat Ltd, Lakshmi Electrical Control Ltd, KEW Industries Ltd, Apar Industries Ltd, Nagpur Power and Industries Ltd etc did well today: The Oil Prices are expected to crash to $110 per barrel with a short time and you might see some hedge fund going bust. The rise in Crude Oil Price is just an aberration and is not sustainable above $150 per barrel. With the US economy becoming strong (relative term) the dollar is expected to become strong and hence the oil prices are expected to come down. However there is some seasonal demand for oil in the US, but that should not make it move in such a way:

Sharp fall in US stocks overnight and surging crude oil prices weighed on the market sentiment today, triggering a broad based decline in blue chips. Asian markets which opened before Indian markets were weak. European markets which opened after Indian market were in red Banking, capital goods, realty and auto stocks fell. All the sectoral indices on BSE were in red. The market breadth was weak. On Wednesday, 21 May 2008, the US Federal Reserve cut its 2008 US economic growth forecast and signaled that mounting concerns over inflation would make further interest rate cuts unlikely, driving the three major US indexes down over 1.5%. Oil prices surged to a record high above $135 per barrel on Thursday, 22 May 2008, stoking fears of global inflation. The 30-share BSE Sensex lost 336.05 points or 1.95% at 16,907.11. Sensex lost 379.78 points at day’s low of 16,863.38 touched in late trade. The broader based S&P CNX Nifty was down 92.2 points or 1.8% at 5,025.45. Nifty May 2008 futures were at 5024, at a discount of 1.45 points as compared to spot closing of 5025.45. The BSE clocked a turnover of Rs 5,742 crore, lower than a turnover of Rs 7,126.12 crore on Wednesday, 21 May 2008. NSE's futures & options (F&O) segment turnover was Rs 45,076.17 crore, which was higher than Rs 39,481.17 crore on Wednesday, 21 May 2008. The market breadth was weak on BSE with 1,040 shares advancing as compared to 1,684 that declined. 67 remained unchanged. Among the 30-member Sensex pack, 29 declined while 1 advanced. The BSE Mid-Cap index declined 98.80 points or 1.38% to 7,049.25 and BSE Small-Cap index declined 125.14 points or 1.42% to 8,663.84. BSE Bankex (down 3.06% at 8,375.89), BSE Realty index (down 2.68% at 7,693.34), BSE Capital Goods index (down 2.4% at 13,341.91), BSE Power (down 2.12% to 3,232.82), BSE Auto index (down 2.05% at 4,684.83) underperformed Sensex. BSE Oil & Gas index (down 1.89% to 11,216.54), BSE FMCG index (down 1.74% at 2,440.04), BSE Metal index (down 1.36% to 17,152.95), BSE TecK index (down 1.23% to 3,489.01), BSE Consumer Durables index (down 1.04% to 4,632.70), BSE PSU index (down 0.94% to 7,653.82), BSE IT index (down 0.79% to 4,418.23), BSE Health Care index (down 0.41% at 4,228.08), outperformed Sensex. Banking stocks declined. ICICI Bank (down 3.39% to Rs 880.40), HDFC Bank (down 2.4% to Rs 1,379.90) and State Bank of India (down 3.28% to Rs 1,607) edged lower. Realty stocks fell. Indiabulls Real Estate (down 3.43% to Rs 512.50), Unitech (down 3.1% to Rs 273.85) and DLF (down 2.17% to Rs 620.70) edged lower. Capital goods stocks declined. Larsen & Toubro (down 2.57% to Rs 2,916.80), Bharat Heavy Electricals (down 1.33% to Rs 1,748.05) and Suzlon Energy (down 5.62% to Rs 291.60) edged lower. Auto stocks declined. Tata Motors (down 3.98% to Rs 661.45), Maruti Suzuki India (down 1.79% to Rs 800.50), Hero Honda Motors (down 0.03% to Rs 788.50) edged lower. India’s largest tractor maker by sales Mahindra & Mahindra (M&M) declined 2.2% to Rs 652.35. It has reportedly signed a term sheet with Kinetic Motors to acquire a majority stake in the company. According to reports, M&M is looking to acquire 76% stake in Kinetic Motors valued at about Rs 120 crore. A deal could fructify in the next two months if the due diligence proceeds smoothly, the reports added. India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 1.89% to Rs 2,617.35. India's largest state-run oil exploration firm in terms of revenue Oil and Natural Gas Corporation (ONGC) declined 1.53% to Rs 924.35. It is reportedly planning to sell 30% to 40% each in two blocks in Vietnam to share the risks and drilling costs. ONGC owns 100% in the two deepwater exploration blocks. The buyer has not yet been finalised, the reports added. India's largest drug maker by sales Ranbaxy Laboratories declined 1.14% to Rs 498.25. It has reportedly struck two deals with group companies. Ranbaxy has sold some land and building for Rs 90 crore to a group company. It has also picked up 24.91% stake in Shimal Laboratories, another promoter family company, for Rs 93.4 crore, the reports added. Reliance Infrastructure (down 3.97% to Rs 1,322.95), Reliance Communications (down 3.16% to Rs 584.65), Ambuja Cements (down 2.61% to Rs 104.30), Jaiprakash Associates (down 2.65% to Rs 246.10), ITC (down 2.36% to Rs 223.05), HDFC (down 2.29% to Rs 2,626.70) edged lower from the Sensex pack. India’s largest aluminium maker by sales Hindalco Industries rose 0.2% to Rs 197.65. Ispat Industries clocked the highest volume of 4.32 crore shares on BSE. IFCI (3.13 crore shares), Nagarjuna Fertilisers and Chemicals (1.11 crore shsres), Reliance Natural Resources (1.09 crore shares) and Cybermate Infotek (99.73 lakh shares) were the other volume toppers in that order. Reliance Capital clocked the highest turnover of Rs 225.63 crore on BSE. IFCI (Rs 201.77 crore), Cairn India (Rs 189.47 crore), Reliance Power (Rs 180.57 crore) and Reliance Industries (Rs 176 crore) were the other turnover toppers in that order. In Asia, key benchmark indices in Hong Kong, China, South Korea, Singapore and Taiwan were down by between 0.08% to 1.89%. However Japan’s Nikkei was up 0.37%. European markets were weak. Key benchmark indices in Frnace andd Germany and UK were down between 0.04% to 0.49%. Earnings downgrade amid rising input and interest costs, high inflation and drying up of global liquidity due to credit crisis remain major concern for the Indian stock market. Inflation based on the wholesale price index rose 7.83% in 12 months to 3 May 2008, higher than previous week's annual rise of 7.61%, government data released on 16 May 2008, showed. It was the highest since an annual reading of 7.93% on 6 November 2004. Further, a steep increase in upward revision in inflation rate for the week ended 8 March 2008, to 7.78% from the provisional 5.92%, came as a rude shock to marketmen. According to retail brokerage Sharekhan, the steep upward revision in inflation rate is a cause for concern, as prices of many commodities have not been updated for varied periods. Moreover, a sharp fall in the rupee against the dollar in the past few days has heightened concerns about inflation. This is because the fall in rupee will raise cost of imports which in turn will result in further rise in inflation. In a bid to rein in inflation, the Reserve Bank of India, on Tuesday, 29 April 2008, raised cash reserve ratio (CRR) by 25 basis points to 8.25%, to suck out excess liquidity in the banking system, in its annual monetary policy review. With parliamentary elections scheduled next year (May 2009), the government may leave no stone unturned in its attempt to tame inflation. This is bad news for commodity scrips such as cement and steel. Cement maker ACC said earlier this months that its margins will be hurt by a decision to hold its prices for 2 to 3 months that was taken after the government asked cement firms to help contain price pressures. The government recently imposed export tax on basmati rice and some steel products, and cut import duties on key inputs like ferro alloys and metallurgical coke. The government had earlier banned export of cement and non-basmati rice. On 7 May 2008, the government ordered suspension in futures trading in channa, refined soyoil, potato and rubber for four months. Meanwhile, as per a recent study by CLSA, large amount of foreign currency convertible bonds (FCCBs) issued by Indian companies are coming up for redemption in the next 18-24 months. After recent stock market volatility many FCCBs are at risk of not converting i.e. if the stock market remains subdued, it will stop the bond holders from opting for an equity conversion as it will be easier for them to buy the stock from the open market instead of paying the agreed premium. When the FCCBs come for redemption, some of these companies may have to take on more debt to redeem the FCCB, thereby raising interest outgo. In the event FCCBs don't get converted, companies have the option to lower the conversion price in line with the market, leading to higher equity dilution. If companies decide to issue fresh FCCBs to finance redemption of FCCBs, it will be at lower premium than earlier. With the rupee tumbling against the dollar in the last few days, the government may ease restrictions on overseas corporate borrowing when it, together with the RBI, reviews the external commercial borrowing (ECB) policy later this month, reports suggest. Last year, the government had imposed restrictions on ECBs in a bid to check in surge in rupee against the dollar. There are many Indian corporates who will eagerly seek cheap overseas funds if the RBI re-opens the ECB tap, analysts reckon. The structural growth drivers of the Indian economy remain intact – India’s economy is expected to witness a decent-to-strong growth for a long period of time due to favourable demographics. Acceleration in infrastructure creation will be another driver of strong growth in India’s economy. A CLSA report says India’s infrastructure development is set to accelerate, backed by greater private sector participation and improved finances of government and public sector enterprises. Rating agency Crisil in its outlook for Indian economy for the year through March 2009 has stated that the overall growth scenario is expected to remain strong with investment as the main driver. Given the continued inflow to unit linked insurance plans (Ulips) and equity linked savings schemes (ELSS) of mutual funds, stock-specific buying will continue depending on fundamentals of individual stocks. Insurance firms are now a major player in the Indian stock market given the huge mop up in Ulips in recent years. It was buying support from domestic funds which had aided the recent recovery on the bourses. Meanwhile, as per recent reports, ELSS which offer tax benefit are catching the fancy of small savers. ELSS funds saw their collective assets jump more than nine times to about Rs 16000 crore in three years ending March 2008. In 2005 the investment limit eligible for income tax breaks was raised ten times to Rs 1,00,000 rupees for ELSS funds. Systematic investment plan (SIP) are said to be driving inflows into ELSS funds.

Today Morning Call on Kernex Microsytem Ltd saw it hit the buyer freeze. Stone India Ltd also hit the buyer freeze before cooling down a bit. Both the companies are expected to get benefitted from the recent Railway Budget: Walchandnager Industries Ltd and Yesterday's "Quickie Call" Kamdhenu Ispat Ltd, hit another buyer freeze. Will it hit some more buyer freezes???! ! What to do??? This is for the Paid Group Members: Tea stocks did remarkably well. The following news was sent in the Sunday Report (24th February, 2008) about the tea companies: "Recently there are some news that tea productions has ebbed in Kenya, one of the major producers of tea. Hence the tea prices are expected to rise both in the International and domestic markets. Keep eye on Warren Tea Ltd, Assam Company Ltd (both Tea and Oil), Diana Tea (tea and real estate), Bombay Burma Trading Corporation Ltd, Goodricke Group Ltd(it was earlier recommended), Harrisons Malayalam Ltd, Mcleod Russel (India) Ltd (Tea and Jatropha) etc." Most of my recommended TEA SCRIPS did well today. Mcleod Russel and Diana Tea infact hit the buyer freezes today. Now what to do tomorrow??!! Should one buy more ??? These are for the Paid Group Members: Karuturi Networks Ltd mentioned in the Sunday Report hit another buyer freeze today: Also my earlier Recommended Roto Pumps Ltd, Tourism Finance Corporation Ltd, Gallant Metal Ltd (Quickie Call), VBC Ferro Alloys Ltd (recommended at Rs.92 and Rs.121), MSK Projects Ltd, KRBL(Quickie Call recommended 60 days back at Rs.89), Garnet Constructioin Ltd, Ritesh Properties Ltd, Rajoo Engineers Ltd (recommended a couple of months back at Rs.141 when it was suspended from trading in the BSE), Jaypee Hotels Ltd, National Steel Ltd, DMC International Ltd, Avon Organics Ltd, NG Industries Ltd, Advani Hotels Ltd etc. did well today:

The market extended Monday (25 February 2008)'s gains after Railway Minister Lalu Prasad Yadav provided thrust on modernising rail infrastructure in Railway Budget 2008-09 which he presented to parliament today. Keeping the common man in mind, the railway minister also cut passenger fares, with parliamentary elections due in 2009. Firm global markets also helped support domestic bourses. The 30-share BSE Sensex rose 155.62 points or 0.88% at 17,806.19. It opened 148.99 points higher at 17,799.56. Sensex hit a high of 17,860.10 in late trade. At day’s high Sensex gained 209.53 points. Sensex hit a low of 17,678.74 in afternoon trade. At the day's low, Sensex was up 28.17 points. The broader based S&P CNX Nifty was up 69.35 points or 1.33% at 5,270.05. Metal, capital goods, banking, realty and power stocks rose. Reliance Energy and Infosys soared in late trade. The market breadth was strong. Mid-cap and small-cap indices outperformed Sensex. 19 stocks from 30-member Sensex pack were in the green. Railway Minister Lalu Prasad today announced a cut in freight rates by 5% on petrol and diesel in the Railway Budget for 2008/09. He also announced a reduction of 5% in fares for second class sleeper-class passengers. Yadav cut the fare of air conditioned (AC) I-tier by 7%, AC II-tier by 4%, and AC III-tier by 3%. The Indian railways will offer discounts on charges for freight booked during lean seasons Yadav told parliament in his budget speech. The Railway Minister said Indian Railways will report a cash surplus of Rs 25,000 crore in FY 2007-08. Railways will invest Rs 75,000 crore to upgrade infrastructure over the next seven years and also to start making steel coaches from FY 2009 and introduce them from FY 2010. There will be no peak season surcharge on cement transport. Railways plan to upgrade 50 container terminals across the country which includes Mumbai and Chandigarh terminals. The Railways will begin 25-30 tonne axle load trains. BSE clocked a turnover Rs 4818 crore compared to Monday (25 February 2008)'s Rs 5,666.57 crore. Nifty February 2008 futures were at 5259.35, at a discount of 10.7 points as compared to spot closing of 5270.05. The NSE's futures & options (F&O) segment turnover was Rs 56,515.69 crore, which was higher than Rs 51,314.54 crore on Monday, 25 February 2008. As per provisional data, FIIs sold shares worth a net Rs 31.99 crore today, 26 February 2008. Domestic funds bought shares worth a net Rs 511.33 crore. As per reports, the government has clarified that lending and borrowing of securities under the securities lending and borrowing scheme will not attract Securities Transaction Tax (STT) or capital gains tax. However, it is not clear if sale and repurchase transactions made on the basis of borrowed securities would be taxable. The next major trigger for the market is the Union Budget 2008-09. With general elections due in 2009, Union Budget 2008-09 to be presented on 29 February 2008 will be the last full-fledged budget of the Congress-led United Progressive Alliance government and it is therefore likely to be a populist budget. Thus, the Finance Minister (FM) is likely to provide higher allocations to several social initiatives like rural upliftment, employment, education, agricultural growth and public health. Though populist measures will dominate the budget, FM is also expected to take steps to stimulate investment and consumption demand at a time when the economy is witnessing moderation from a solid growth last year. A reduction in personal income tax, if any, will result in increase in disposable incomes which in turn may boost demand for consumer goods. Expectations are that the corporate income tax rate may be cut or the 10% surcharge on corporate tax may be abolished. The surcharge is 10% on a tax rate of 30%, making the effective corporate tax rate 33%. Another possibility is that of a cut in dividend distribution tax from 15% to 12.5%. Meanwhile, FM may raise the Securities Transaction Tax slightly. It is also expected that the FM would announce some relief packages for troubled export sensitive sectors like textiles, rubber, jewelry, leather and IT services. These sectors have been hit by rupee’s surge in the past one year. The market breadth was strong: on BSE 1,652 advanced as compared to 1,081 that declined. 41 shares remained unchanged. The BSE Mid-Cap index rose 1.27% to 7,690.86 and BSE Small-Cap index rose 1.28% to 9,648.49. BSE FMCG index (up 0.49% to 2,250.79), BSE Auto index (up 0.54% to 4,746.46), BSE Consumer Durables index (up 0.7% to 4,865.24, BSE HealthCare index (up 0.57% to 3,813.61), BSE Bankex (up 0.75% to 10,189.48) underperformed Sensex. BSE Oil & Gas index (up 1.42% to 11,214.76), BSE PSU index (up 1.56% to 8,438.08), BSE Metal index (up 1.64% to 16,801.01), BSE Power index (up 2.65% to 3,706.80), BSE IT index (up 1.76% to 4,062.67), BSE Captal Goods index (up 2.05% to 16,124.36), BSE Realty index (up 2.53% to 10,016.49) outperformed Sensex. IT stocks were mixed. Infosys (up 3.02% to Rs 1,662.10), Wipro (up 1.05% to Rs 444.15) edged higher. However Satyam Computer Services (down 0.12% to Rs 449.75) and Tata Consultancy Services (down 0.24% to Rs 897.85) edged lower. Information Technology Vision 2012 aims at radical changes in IT applications on a common platform in Indian Railways with focus on improvement in operational efficiency, transparency in working and better services to the customers. Shares of three oil refinery firms rose between 3.64% to 4.18% after a cut in freight rates by 5% on petrol and diesel announced in the Railway Budget for 2008/09. Indian Oil Corporation (up 4.17% to Rs 550.90), Bharat Petroleum Corporation (up 5.38% to Rs 456.45) and Hindustan Petroleum Corporation (up 4.75% to Rs 307.70) gained. Shares of the eight cement firms rose between 0.65% to 5.06% after Railway Minister, Laloo Prasad Yadav, in his Railway Budget, said the government would erect new bulk handling facilities for cement transportation. Andhra Cements (up 3.41% to Rs 31.80), Grasim Industries (up 5.06% to Rs 3042.70), J K Cements (2.32% to Rs 165.70), JK Lakshmi Cement (up 1.8% to Rs 138.70), ACC (up 1.53% to Rs 830.90), Ambuja Cement (up 0.65% to Rs 123.35) and Ultratech Cement (up 0.78% to Rs 910.65), moved up. The Railways Minister said that no busy season surcharge would be charged for cement transported in bulk through the new facilities. Metal stocks rose. Jindal Stainless rose 7.19% to Rs 160.35 on hopes of higher demand for stainless steel, after the railway budget announced introduction of stainless steel coaches in express trains. National Alluminium Company 7.37% to Rs 465.85), Steel Authority of India (up 2.57% to Rs 245.40), Sterlite Industries (up 3.89% to Rs 846.05) edged higher. However Tata Steel rose 0.08% to Rs 809.25. India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 0.94% to Rs 2,575.75. Capital goods stocks rose after rail budget. Thermax (up 5.86% to Rs 681.30), Suzlon Energy (up 6.26% to Rs 314.85), Bharat Heavy Electricals (up 4.58% to Rs 2,180.55) and Larsen & Toubro (up 0.72% to Rs 3,518.25) edged higher. Banking stocks edged higher. HDFC Bank rose 2.27% to Rs 1,455. As per reports after acquiring Centurion Bank of Punjab, HDFC Bank, the second largest private sector bank after ICICI Bank, may look at an overseas buy. The bank would look at an acquisition for increasing its presence in the retail space abroad. ICICI Bank, India's biggest private sector bank in terms of net profit rose 0.72% to Rs 1,118.05 while State Bank of India, India's biggest commervial bank, declined 0.36% to Rs 2,119.85. Power stocks rose. India's second largest power utility firm by revenue Reliance Energy rose 4.95% to Rs 1,697.25 after company said its board will meet on 5 March 2008 to consider, buy back of equity shares of the company. Tata Power Company (up 0.44% to Rs 1,356.05), PowereGrid Corporation of India (up 0.44% to Rs 102.45) and NTPC (up 0.27% to Rs 203.90) edged higher. However, Reliance Power declined 0.54% at Rs 447.95. The company had announced yesterday that its board had approved a proposal for issuing free bonus shares to all categories of shareholders, excluding the promoter group (comprising of Reliance Energy and the ADA Group), in the ratio of 3 shares for every 5 shares held. Realty stocks rose. Indiabulls Real Estate (up 11.06% to Rs 642.45), Unitech (up 2.17% to Rs 390.45), Housing Development Infrastructure (up 1.56% to Rs 836.40) edged higher. However DLF declined 0.19% to Rs 832.60. India's largest truck maker by sales Tata Motors declined 0.46% to Rs 702.10. As per reports US-based automaker Ford Motor Company could announce as early as late next week the sale of its luxury Jaguar and Land Rover brands to the Indian company. India’s biggest oil exploration firm by market capitalisation ONGC rose 1.41% to Rs 1,027.75. ONGC has reportedly made four oil and gas discoveries. Bharti Airtel (down 1.38% to Rs 838.80), ITC (down 0.35% to Rs 201.25) and HDFC (down 0.48% to Rs 2,574.35) edged lower from Sensex pack. Texmaco moved up 2.8% to Rs 1631.35 after the railway minister said 20,000 new freight wagons are expected for 2008/09 and another 5,000 open wagons are to be upgraded to stainless steel. Bartronics India surged 8.43% to Rs 223.90 on BSE after the Railway Minister proposed smart card-based ticketing system. Tulsi Extrusions clocked highest volume of 2.45 crore shares on BSE. Reliance Natural Resources (1.14 crore shares), Gujarat NRE Coke (68.30 lakh shares), Reliance Power (66.76 lakh shares) and Nagarjuna Fertilisers and Chemicals (64.83 lakh shares) were other volume toppers in that order. Tulsi Extrusions clocked highest turnover of Rs 338.44 crore on BSE. Reliance Power (Rs 299.35 crore), Onmobile Global (Rs 263.14 crore), Reliance Capital (Rs 164.21 crore) and Reliance Natural Resources (Rs 157.47 crore) were other turnover toppers in that order. European markets were strong. France’s CAC 40, Germany’s DAX and UK’s FTSE 100 were up by between 0.96-1.53%. Asian stocks were mixed. Key benchmark indices in Hong Kong, South Korea, Singapore, China and Taiwan were up by between 0.26% to 1.92%. However, Japan’s Nikkei declined 0.66% to 13,824.72. US stocks rose sharply on Monday on signs the two largest bond insurers would stabilize, bringing a wave of relief to a market dogged by concerns of further bank write-downs. The Dow Jones industrial average was up 189.20 points, or 1.53%, to end at 12,570.22. The Nasdaq Composite Index was up 24.13 points, or 1.05%, to close at 2,327.48. The 30-share BSE Sensex had surged 301.50 points or 1.74% at 17,650.57 on Monday, 25 February 2008 following a higher than expected bonus ratio from Reliance Power and taking its cue from firm global markets. However, the market breadth was weak on that day. Sensex is down 3,400.58 points or 16.03% from a record high of 21,206. [From Internet]

Note: Those who have deposited the subscription amount for the Paid Service and is have not got any inputs from me till now, please report to me immediately. Those who have deposited the amount and have not received my confirmation mail even after a couple of days, for the start of subscription, should send me a mail immediately. I am too busy these days due to market volatility and also due a number of queries on scrips from PAID CLIENTS.

Telecom: The rising!

The great Indian telecom story surged ahead during 2006, with even more vigour than what was seen in 2005. The base fuel for the growth of the industry in 2006 was the swelling subscriber base. The targets for mobile subscribers were met ahead of deadlines. Encouragingly enough, a larger share of these numbers was seen coming from non-metros. And in October 2006, when the India mobile telecom industry set a world record for the maximum number of monthly addition (6.6 m), the maximum growth was recorded in circles ‘B’ and ‘C’ (78% of the new GSM subscribers were from these circles). This vindicated our stand on the sector as was outlined by our view at the end of 2005. The impressive performance in 2006 would not have been as superb, but for the efforts of the regulatory authority and the drive of telecom operators. The year saw the roll out of a host of regulations that built up healthy competitive markets. The private players, on their part, left no stone unturned in capitalising on the growth opportunity. The sector outperformer: Against the BSE Sensex’s gains of 44% YoY during 2006, the telecom index (inclusive of stocks like Bharti Airtel, MTNL, VSNL, HFCL, Tata Teleservices Maharashtra, Krone Communications, Avaya Global Connect and ITI Limited) had a dismal performance, registering a decline of 11% YoY. The poor performance of the mid-cap telecom (and related) companies weighed heavy on the telecom index. In fact, there were only three gainers from the sector – Bharti Airtel, HFCL and Reliance Communications (we have not included Reliance Communications in the index as the stock was listed on March 6, 2006). Now, when we compare the stock price performance of the top gainer from the telecom index - Bharti Airtel - with Reliance Communications during the period of March 6 2006 to December 22 2006, the latter has emerged as the outperformer. Against Bharti’s gains of 51% during this period, Reliance Communications gained by over 61%. Strong operational performance over the past three quarters combined with the narrowing gap in terms of investor preference (over Bharti) has led to this outperformance from Reliance Communications during the said period. Especially on the valuations front, against an EV/Subscriber gap of US$ 148 between Bharti and Reliance in March 2006 (when the latter was listed), the range has narrowed down to US$ 72 in December 2006. We had been talking of a reducing ‘scarcity premium’ for Bharti (in terms of valuations) as more telecom players are listed, and the same was vindicated in its stockmarket return comparison with Reliance Communications during 2006. Strong gains in Reliance were also a consequence of the louder noise emanating from the company about its intentions of making an aggressive foray into the GSM mobile space. The company already operates its GSM services in 8 circles and plans to have a nationwide presence, either on its own or through an acquisition. Currently, it is involved in the run-up to one of the biggest telecommunication deals in the history of Indian telecom industry (buyout of Hutchison Essar, India’s fourth largest mobile services operator). The year 2007 is expected to be one of great expectations. The record-breaking addition of new subscribers that India was able to attain during the closing months of 2006 (net addition of over 5.5 m new subscribers per month) is not likely to be a one-time phenomenon. We believe that the Indian telecom story is likely to remain intact over the medium to long term. This can be gauged from the future plans that the companies have lined up for capacity expansion. A case in point was the recent floating of the largest tender for telecom equipment by Reliance Communications for a capacity addition of 75 m GSM lines (which might be shelved if the company is able to acquire the assets and subscribers of Hutch-Essar). Also, with sustained efforts on the part of the regulator to usher in better infrastructure and higher competitive markets by way of regulatory changes and availability of cheaper handsets, the penetration rates are expected to increase further. The coming year should also see higher inflow of FDI in the equipment manufacturing facilities, backed by sustained efforts from the government. A parting note… The die has been cast, with the biggest consolidation slated to happen in the telecom industry, most likely during the first quarter of 2007. Though the broader outlook is positive, a greater amount of clarity on the ADC issue should see more subscriber additions for mobile services players. What is, however, worrisome is that although the mobile sector has set the stage on fire time and again, other segments (especially Internet and broadband penetration) have been consistently lacking not just in growth but also in meeting the basic targets. The telecom market in India, owing to its sheer size, offers enough scope for more players in various segments. What is however, needed is a speedier pace of reforms to stimulate this growth potential. [From Internet]

Keep holding Soma textiles Industries Ltd, Agro Dutch Industries Ltd, Hanil Era Textiles Ltd, Conart Engineers Ltd, BSEL Infrastructure Ltd, Landmarc Leisure Ltd, Garnet Construction Ltd, Ricoh India Ltd, ABC India Ltd, Chandra Prabhu International Ltd and Coral India Finance & Housing Ltd.

Best wishes for a prosperous New Year,

Suman Mukherjee

India.

www.sumanspeaks.blogspot.com

http://finance.groups.yahoo.com/group/SumanSpeaks/

My recently recommended Southern Online Bio-Technology Ltd, Phoenix International Ltd, Entegra Ltd, VBC Industries Ltd, STL Global Ltd, BF Utilities Ltd, Kalpana Industries Ltd (This week's quickie call), Kohinoor Broadcasting Corporation Ltd, Vikas Metal Ltd(this week's quickie call), Indsil Electrosmelts Ltd, etc. hit the buyer freeze: My earlier recommended H B Stock Holdings Ltd, BLB Ltd, Kanishk Steel and Industries Ltd, Jhunjhunwala Vanaspati Ltd, Dhoot Industrial Finance Ltd, PNB Gilts Ltd, Rasoi Ltd, Associated Alcohol and Breweries Ltd, Mcleod Russel Ltd, Williamson Magor, Sunflag Iron, Minda Industries Ltd, GTC Industries Ltd, Khoday India Ltd, Kamanwala Industries Ltd etc. hit the buyer freezes: Even H S India Ltd did well today: The Intra-day call given to V S Patini on CESC Ltd at Rs.433 shot up to Rs.454 in late trade, giving him handsome gains, intra-day:

RBI Governor again proves that he is no better than a "Paan wala" in term of taking measures to contain inflation. P Chidambaram first failed to anticipate how much will inflation shoot-up and then suddenly took some extreme measures which even a "Rickshaw-walla" know what to do in these situations, as the last minute effort. No innovation and nothing--plain Vanila CRR hike: Another UPA Minister (at that time he was in Janata Dal of Deve Gowda) Ram Bilas Paswan, whom I saw throwing some "serious gibes" on cartelisation of steel companies on camera today......lol.......laid the foundation stone of Badarpur-Lumding hill-section in the North East in 1996, when he was the Railway Minister and the schedule time for completion was 2006. But even today not even 30% work has been completed on that route:

Anyway HAVING SAID THIS ONE THING IS SURE, THE INFLATION WILL NOW COME DOWN TO BELOW 6%, VERY FAST----I would have been happy if the FM and Governor Reddy could have devised some innovative policies instead of going for the "Rickshaw Puller Route". Just compare how the US Fed behaves and how their counterpart in India behaves--your will bow your head down in shame: But then how will the stock market behave on Monday?? Will the Bull run continue??? Will sucking of Rs.18, 500 Cr from the market have any major impact on Monday and the next week, as the markets were looking good since some days?? Would 7.5%--8% growth be sustained? Are we gradually moving towards the softer Interest Rate regime, which will spur growth? All these to the Paid Groups:

Licence fee for DTH to be cut by 40% Nivedita Mookerji Thursday, April 17, 2008

NEW DELHI: The annual licence fee for direct-to-home (DTH) broadcasting players is set to dip from the current 10% to 6% of their gross revenues, as Telecom Regulatory Authority of India (Trai) has backed the information and broadcasting (I&B) ministry’s proposal on that. However, DTH players are not likely to pass on the benefits of the reduction in licence fee to their subscribers immediately. While supporting the I&B move to cut the licence fee, Trai chairman Nripendra Misra has reminded the ministry that “the decision of the government should follow Trai’s recommendations.” In this case, the I&B ministry sent its proposaldecision to Trai on cutting the licence fee, and sought the regulator’s view. In a letter to I&B secretary, Asha Swarup, Misra wrote, “The authority has considered the decisions/ observations of the government…. As you are aware, Section 11(1) requires the authority to make recommendations on specified matters. The decisionof the government should follow Trai’s recommendation.” According to the regulator, imposing a lower licence fee on the service providers is likely to encourage higher growth. It has added that with increased growth, it would be a win-win situation for the industry and the government. Later speaking at a press conference to announce the launch of a DTH association -DOAI (DTH Operators Association of India) - Tata Sky CEO Vikram Kaushik said that since DTH is in its infancy and players are running losses, an immediate cut in tariff is unlikely.Kaushik, along with other DTH heads such as Jawahar Goel of Dish TV and Prakash Bajpai of Big TV (Anil Ambani’s Reliance group) pointed out that efforts would be made to make the platform affordable for all.

It is likely that special prices would be announced soon by various DTH platforms for bundles, bouquets and a la carte packages. Representatives of DTH players - Tata Sky, Dish TV, Bharti, Big TV and Sun TV - came together on Wednesday to form their association, in order to lobby with the regulator and the government for common causes. The association, DOAI, is expected to perform the role of telecom associations, COAI and AUSPI, in the DTH sector. After the mobile revolution, it is the turn of DTH revolution, they said. Currently, Dish TV (of the Essel group) and Tata Sky (joint venture between the Tatas and Rupert Murdoch’s Star TV) are the two main DTH players in India. Tamil Nadu-based Sun TV too launched its direct-to-home broadcasting service recently. Prasar Bharati too has been running its DTH service (DD Direct Plus), but it is a free-to-air platform. In all, there are between 5 million and 6 million DTH users in the country.Dish TV, which recently touched the 3-million subscription figure, reported a net loss of Rs 251 crore in the financial year ending March 2007. Its rival Tata Sky showed a net loss of Rs 815 crore in the corresponding period, though the service was launched in August 2006. Two more players-Big TV and Bharti-are likely to launch their DTH service soon. And, the Videocon group has also got the DTH licence. Of the 120-million TV households in India, only 70 million have cable connection. DTH is still in its infancy in India, and there’s sufficient room for growth. By the year 2015, 40% of the pay TV universe (cable TV and DTH) are likely to be DTH users, significantly up from around 5% now, according to industry projections. [From Internet]

Reliance Infrastructure Ltd: Buy

CMP (Cash): Rs.439.50

CMP (Futures): Rs.443.50

Book Value: Rs.948.49

P/E: 9.50

Industry P/E: 14.51

EPS: Rs.46.40

Face Value: Rs.10

Dividend Yield: 2.04%

1st Target: Rs.460 for Futures

Triggers:

#Reliance Infrastructure (RInfra) recently said it won a Rs.3,647 crore contract from

Photo: The Hindu BusinessLine

Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) for work related to Uppur Thermal power project. With this contract, Reliance Infrastructure Limited's EPC order book now stands at over Rs.15,000 crore.

#With a clear focus to position itself in India's growing infrastructure sector, and a number of projects in the offing, in areas as diverse as power, metro rails, nuclear power plants, air quality control, marine, railways, ports, and mega infrastructure projects, RInfra is targeting EPC opportunities worth Rs.2 lakh crore and increase the EPC order book to Rs.50,000 crore by FY19, the management of the company said earlier.

#Reliance Infrastructure earlier said in a statement that its consolidated net profit is Rs.410 crore ($64 million) in December,  '17 quarter against Rs.375 crore in the year-ago period, registering an increase of 9%, prior to Indian Accounting Standards (Ind AS) adjustment in the third quarter. The Total income FY18 went down marginally to Rs.6,345.97 crore from Rs.6,484.45 crore in the year-ago period. 

The company expects Delhi-Agra and Pune-Satara projects to be completed in 2018. About Mumbai Metro One, it said its revenue was Rs.76 crore in Q3FY18, registering an increase of 27% year-on-year.

#Defence business: The company said it has strategic partnership agreement with Dassault Aviation. The Dassault Reliance Aerospace Ltd JV has 51% stake of Reliance. The JV will play a major role in meeting the offset obligation of Rs.30,000 crore for “Rafale 36” contract. The foundation stone was laid for the manufacturing facility in Mihan, Nagpur (Maharashtra). The JV will also represent unequalled Foreign Direct Investment (FDI) of over €100 million by Dassault- largest Defence FDI in one location in India. It also said Reliance Infra has won Delhi Metro arbitration award against DMRC worth Rs.5,000 crore including interest. The Delhi high court has reserved order for the above arbitration claim. It also won arbitration award for two road projects i.e. NK Toll Road & DS Toll Road worth Rs.170 crore.

#The Competition Commission of India had already given approval for the proposed 100% sale of Reliance Infrastructure’s integrated Mumbai power business to Adani Transmission. In December, 2017, Gautam Adani-led Adani Transmission has signed a definitive agreement to acquire Anil Ambani-led Reliance Infrastructure’s power generation and distribution business in Mumbai in a deal valued at Rs.13,251 crore. While there will be an upfront payment of Rs.13,251 crore, Reliance Infrastructure will also get regulatory assets under approval estimated at Rs.5,000 crore and net working capital on closing estimated at Rs.550 crore, making the total consideration around Rs.18,800 crore. Transaction is expected to be completed by March 2018. 

#RInfra will utilise the proceeds of this transformative transaction entirely to reduce its debt. This is the largest ever debt reducing exercise by any corporate. This monetisation is a major step in RInfras deleveraging strategy for future growth.  RInfra will focus on upcoming opportunities in asset light EPC and Defence businesses, the management of the company said.

With this deal, RInfra, which is sitting on a debt of nearly Rs.20,000 crore, would become debt-free, with up to Rs.3,000 crore cash surplus, the company said. 

#The Global research firm JPMorgan maintained its overweight stance on the stock with a target of Rs.630. It said that the implied equity value of the deal is Rs.6,250 crore i.e. two times regulated equity base.

#“Our focus is on defence sector. Yes, there is competition in defence sector. Yes, government is the customer. But we are completely committed to succeed in the defence sector,” Ambani in September, 2018  said. He told shareholders that with the acquisition of Pipavav Defence & Offshore Engineering and the subsequent tie ups with international companies makes Reliance Infrastructure one of the two companies in India which are strategically positioned to participate in the government’s programme to build submarines. 

“With regard to Reliance Naval, the mandatory requirement for change of ownership is what we’ve achieved with our 31% shareholding. We have the ability to increase our shareholding to 36%. We will be shortly announcing a rights issue and through the rights issue, we will have the ability to increase our shareholding,” Ambani said. 

He also said that Reliance Infrastructure is engaging with Japanese companies with the intention of participating in India’s ambitious Rs.1 lakh crore-bullet train project. 

#Reliance Naval and Engineering Limited, a subsidiary of Reliance Infrastructure Ltd is the first private sector company to build warships. The company created history in July 2017 by tandem launching two Naval Offshore Patrol Vessels (NOPVs)," the statement said.  At present, Reliance is one of the two private sector shipyards in India to undertake large and tactical programmes of the Indian Navy and Indian Coast Guard like indigenous aircraft carriers, landing platform docks, frigates and P75I submarines.
Reliance Infrastructure Limited, Reliance Infrastructure Limited, through its subsidiaries, is actively pursuing various defence businesses. Reliance Naval and Engineering Limited has a large ship building/repair infrastructure in India. The company is the first private sector company in India to obtain the licence and contract to build NOPVs (Naval offshore patrol vessels) for the Indian Navy.

#Motilal Oswal Securities believes the correction in midcaps has made stock picking a bit less challenging. The brokerage believes that the recent weakness offers a good opportunity to accumulate quality stocks where valuations had turned expensive. 

Conclusion: Buy the stocks of Reliance Infrastructure Ltd in futures for a very short term target of Rs.460. The stock has medium term targets of Rs.570--597.

Bibliography:
i) The Economic Times
ii) The Business Standard
iii) Business Today
iv) The Hindu BusinessLine, etc

Atlanta Ltd

BSE Code: 532759

CMP: Rs.94.70

Atlanta Limited is engaged in the business of infrastructure development, including construction of Roads, Highways, Bridges, Runways, Real Estate development and Mining of coal, lime stone etc. The business activities of the Company are:

1. Engineering, Procurement and Construction (EPC)

2. Infrastructure development on PPP model

3. Mining

4. Real Estate.

Incorporated in 1977 as a partnership firm and converted into a private limited company in 1984, it was deemed a public company in 1991 and went public in September 2006. The shares of Atlanta are listed on the Bombay Stock Exchange and the National Stock Exchange.

Promoted by Mr Rajhoo Bbarot, having 30 years of experience in the field and a member of the working group on National Highways for privatisation of roads of Confederation of Indian Industry (CII), Atlanta is driven by a team of professionals and an eminent board of directors, all of whom possess strong domain experience and expertise.

It has experience in executing complex and high IRR projects and deploying sophisticated technology.

THE UP-COMING RAILWAY BUDGET COULD GIVE POSITIVE TRIGGERS TO THE SHARE PRICE OF THE COMPANY AS THE COMPANY IS INTO RAILWAY PROJECTS IN A MAJOR WAY.

Moreover, the fact that the government has laid out a blueprint to completely open up the mining sector, attract private participation and allow 100 per cent FDI for captive mining (for power,cement and steel companies) augurs well for the shareholders of the company.

FUTURE DIRECTION:

• Leveraging Public Private Partnership.
• Participating in more toll-based BOT projects.
• Owning a mine.
• Establishing Pan India realty presence especially across Tier II and Tier III cities.
• Developing and managing parking plazas, ports.
• Executing airport management projects

In 2003, it Completed extraction and transfer of Coal/Coal Measure Strata in deploying "surface miners" on hire basis at Belpahar OCP for Mahanadi Coal Fields Ltd.

In 2006 it received ISO 9001: 2000 Quality Management Standard certification.

Atlanta Ltd broadly operates in 3 (three) segments:

1. Infrastructure: From executing India's first greenfield BOT project on National Highways - Udaipur Bypass and successfully participating in toll-based PPP infrastructure development projects to building roads, highways, bridges, runways, docks, ports, canals, water courses, irrigation, embankment, reservoirs and executing several EPC projects, Atlanta is at the forefront of developing India's infrastructure.

The company has serviced some of the biggest players in the industry such as National Highway Authority of India (NHAI), Ministry of Road Transport and Highways, Public Works Department, Municipal Corporation of Greater Mumbai and Airports Authority of India to name a few.

Atlanta has established an enviable reputation in the infrastructure development and EPC space due to its ability to harness technology to match the momentum of tomorrow. The company owns and employs modern, specialised and critical fleet of equipment to successfully execute large and complex projects.

Atlanta's EPC division is the oldest and the largest business division of the company and its key activities comprise the actual execution of the infrastructure projects. This key in-house EPC capability helps the company deliver quality projects on time, amply demonstrated by the successful completion of the Udaipur Bypass project in less than half of the allocated time.

Of the two toll-based BOT projects one of them, Mumbra Bypass was completed in December, 2008 and from which Toll Collection has already started while the Company is executing, Nagpur-Kondhali (Which is nearing completion) along with several other EPC projects.

Looking forward Atlanta being a forward thinking company, besides identifying traditional infrastructure development projects plans to foray into two new emerging segments: building and maintaining car parking plazas and airport management.

The company, is confident of success in both these segments due to its inherent construction expertise, flawless execution skills, technological know-how which will be backed by alliances with established foreign players in these field.

2.MINING: Atlanta is active in the high margin limestone and coal mining business with over a decades experience in contract mining, having gained valuable experience at a time when the captive mining business was not even on the radar of competitors.

Prominent features that make Atlanta the obvious contract mining partner of choice competent and best suited to take on the sector's specific needs and challenges include:

1. SURFACE MINING TECHNOLOGY: Atlanta is the first player in the country to have prudently invested in superior surface mining technology: a technology imported from Wirtgen, Germany and Volvo, Sweden that eliminates conventional operations like drilling, blasting and crushing. Surface mining technology enables controlled excavation, is not labour-intensive nor is it risky like the conventional mining process.

2. CAPACITY: Atlanta has the capacity to extract (limestone / coal) over 25000 tones per day, significantly higher than industry peers.3. CREDIBLE PRESENCE: Atlanta’s distinguished clients include: Mahanadi Coal Fields Ltd. (a subsidiary of Coal India Ltd), Reliance Petroleum Ltd, The Associated Cement Companies Ltd, Narmada Cement Company Ltd, Tata Chemicals Ltd, amongst others.

3. REALTY: Having anticipated the market trends in the realty sector, Atlanta increased its preparedness to leverage the opportunities by prudently investing in land sites with clear land titles and concurrently demonstrated success and expertise across diverse formats by executing commercial projects and residential projects in prime and emerging locations in Mumbai.

With a longstanding sectoral presence in constructing and executing large projects, Atlanta is now on its way to build attractive properties in and around Mumbai and plans to develop innovative structures across all realty segments in emerging Tier II and Tier III cities across the country.

Besides this Atlanta Ltd has 25 acres of Land in Thane (near Mumbai), with a 10 lakh sq.fr build-able area, which has a value around Rs.270--Rs.300 Cr.

The Company has recently been awarded a contract from Gujarat Industrial Development Corporation in respect of tender submitted by the Company for providing infrastructure for DSL (Dahej SEZ Ltd) at Dahej (Gujarat) amounting to Rs 1464.81 million of which Rs.50 Cr worth of project has been completed. This will show up in Q4FY09 results. According to the sources, the company is expected to get some NHAI projects soon. Atlanta Ltd will benefit immensely due to government's stress on infrastructure development. The company has a stability of earnings as it is into BOT project, though here the margin is very less.

The company is currently doing the Rs 226.24 Cr Nagpur-Kondhali four-lane toll-based BOT project. Balaji Tollways Ltd, an SPV was formed for this purpose.This project is expected to go on stream from FY 2010. The company has invested a major portion of the IPO proceeds in Balaji Tollways Ltd. (for the execution of the Nagpur-Kondhali project).

Construction of Mumbra bypass project was successfully completed and toll collections has commenced.

The Company is presently executing following major contracts:

* Improvement, strengthening and widening of existing two lane road to four lane dual carriageway from Km.9.200 to Km.50.000 of NH-6 (Nagpur - Kondhali Section) in the State of Maharashtra.

* Construction / Improvement of Bituminous Road in PMC Limit under JNNURM Scheme - Category-I, Package-II: Hotel Green Park to Balewadi Stadium Crossing Westerly Bypass, Pune.

* Construction of 12 Nos. Major Bridges having total 35 spans with 1200 mm diameter cast in situ bored piles & SPC girder super structure of 18.30m between Dausa-Gangapur City Section in connection with Dausa-Gangapur City New Broad Gauge Line Project (No.DO-GGC/NU14).

* Construction of Broad Gauge formation & minor bridges from Ch.41000.00 to 45000.00 between Dausa and Lalsot in connection with Dausa-Gangapur City New Broad Gauge Line Project (No.DO-GGC/NU18).

* Execution of the Railway Doubling work between Bimiagarh Dumerta and Champajharan division.

* Extraction & Transfer of Coal/Coal Measure Strata by deploying 'Surface Miners' on hiring basis at Kalinga OCP of Kalinga Area.(NIT 334).* Extraction & Transfer of Coal/Coal Measure Strata by deploying 'Surface Miners' on hiring basis at Hingula OCP of Hingula Area.

* Extraction & Transfer of Coal/Coal Measure Strata by deploying 'Surface Miners' on hiring basis at Lingaraj OCP of Lingaraj Area.

* Deployment and operation of suitable capacity of Surface Miner(s) & allied equipments for cutting of Coal/Coal Measure Strata and its associated works at Baroud OC Project - Raigarh Area.

* Deployment and Operation of suitable capacity of Surface Miner(s) and allied equipments for cutting of coal/coal measure strata and its associated works at Chhal OC Project - Raigarh Area.

The company is currently involved in the following real estate projects in partnership:

* Construction of Commercial Building 'Atlanta Centre' situated at Goregaon (E), Mumbai.

* Construction of Commercial Building 'ABT SQUARE' at Malad (E), Mumbai.

* Construction of Shopping Mall 'ATLANTA V MALL'at Jodhpur, Rajasthan.

THE SHARE PRICE OF THE COMPANY COULD MORE THAN DOUBLE FROM THE CURRENT PRICE IN THE NEXT 6 MONTHS TIME FRAME. ALL TIME HIGH FOR THE SCRIP IS AROUND Rs.1400 (Rupees Fourteen Hundred).

Chartically speaking, the stock of Atlanta Ltd, is about to give a break out from its existent trend. If it crosses Rs.97.5 with good volume, then the next targets could be Rs.150--Rs.192--Rs.240.

I think you are enjoying my other recommended counters like Northgate Technologies Ltd, Glory Polyfilms Ltd, Ranklin Solutions Ltd, Sanguine Media Services Ltd (10-bagger), Kohinoor Broadcasting Corporation Ltd, VLS Finance Ltd, Phoenix International Ltd, Galada Power and Telecom Ltd, SAAG RR Infra Ltd, Prajay Engineers Syndicate Ltd, etc.

Also take note that something might be cooking in one of my old favourites, H S India Ltd (Hotel Silver, BSE Code: 532145). If we compare it it with Advani Hotels Ltd we will find that its book value is almost same as Advani Hotels Ltd (BSE Code: 523269) but it is trading at almost 1/4 th the price of Advani Hotels Ltd, which looks a little absurd, especially when momentum is driving most of the counters.

The point to be noted here is that the book value of H S India Ltd actually improved to Rs.8.64 from around Rs.5, a couple of years back. The business model of H S India Ltd is much stable than Advani Hotels Ltd. All time high for the scrip of H S India Ltd is around Rs.80; hence the scrip is poised for immediate re-rating.

Possible Triggers for H S India Ltd:

1. In order to exhilarate hospitality standard and with an aim to provide high class facility to its valued Customers, the Company has completed the construction of additional rooms and Banquet Halls on property of the Company. Management is of view that it will meet the present demand of market. Hence the additional business model somewhat resembles Bhagwati Banquets & Hotels Ltd (my earlier recommended counter at Rs.27--28).

2. SUBSIDIARY COMPANY: As on 22nd April, 2008, the Company has acquired 1,03,675 equity shares of Kesar Motels Private Limited @ of Rs. 400/- each representing 76% stake in the Company. Consequent to such acquisition, Kesar Motels Private Limited has become subsidiary of the Company.

3. CLOSING DOWN OF SOFTWARE DIVISION: Board of Directors of the Company has decided to close down its Software Division. This will help the company to focus on its core competence and it it will not have much affect on turnover and profitability of the Company.

The company earlier informed that the Board of Directors of the Company at its meeting held on May 27, 2009, has allotted 3 lakhs equity shares of the Company to IFCI Ltd on conversion of 3000, 12.5% OFCDs of Rs 1000 (One Thousand) each.

Sensex Bounces back to 13,700 level: Late buying in Premier Explosives Ltd on the anticipitation of good quarterly results helps it to conquer Rs.42 mark again. Keep holding the counter and add on all declines: Southern Online Bio Technology Ltd remains flat on the anticipation of the Opening of the company for commercial production: Sabero Organics Gujarat Ltd also closes flat at Rs.14.37: The bulk drug marker Gujarat Themis Biosyn Ltd Ltd rises 3.47 % today. The promoters' holding is quite large if one considers, the updated sheet upto 31st December, 2007. But the company's balance sheet is in deep red: Investors can take positions in Ador Fontech Ltd at the current price of Rs.86.60: Garnet Construction Ltd falters after they came out with lower than expected FY-06-07 results. Book profits and exit the counter for the time being: Stone India Ltd goes down the drain after my sell call at Rs.140.50( this was the stop loss which I mentioned during the market hours): Don't enter Redington India Ltd & Sparsh BPO Services Ltd as both of them look overvalued according to my findings. But if anyone has already entered following technicals please keep a SL of Rs.196 in Sparsh BPO Services Ltd: Sideways movement to continue in the large cap counters: The market recovered almost its entire lost ground in the earlier part of the day as value buying emerged at lower levels. Strong global markets helped sentiment, forcing traders to cover their short positions. Japan's Nikkei average gained 0.52% on Wednesday, 9 May 2007, to its highest close since the global equity sell-off in February 2007, as Kawasaki Kisen Kaisha jumped following an upbeat earnings report, prompting investors to buy shares in other shipping firms. The Nikkei rose 91.28 points to 17,748.12, its highest close since 27 February 2007. Hong Kong’s Hang Seng index was up 0.62% or 128.72 points to 20,835.07 Back home, at 14:35 IST, the Sensex was down 45.68 points to 13,719.78. Its high for the day, amid intense bouts of volatility, so far was 13,747.74. Earlier, the Sensex had opened weak at 13,709.95 as profit booking continued for the third straight session, pulling the benchmark index below the 13,700 mark to a low of 13,612.04. Traders are refraining from building fresh positions ahead of the crucial US Federal Reserve’s meeting today evening (IST). Fresh short positions in the futures and option (F&O) segment are said to have been built up on Tuesday,8 May 2007, as the basis (the spread between futures and spot market) turned negative. The market is closely watching the 13,700 level for the Sensex, which was cracked a little while ago, leading to fresh selling, but has since been regained. The Sensex has been moving in a trading range of 13,700 and 14,300 since the past few weeks and a breakout on closing basis, either way, is likely to provide future direction. The market breadth, which indicates the overall health of the market, continued to remain weak as selling emerged for small-cap and mid-cap stocks. There were around 1.5 losers for every gainer on BSE, with 1,508 shares declining as compared to 986 that advanced. Prices of 108 stocks remained unchanged. The total turnover on BSE amounted to Rs 2971 crore. Among the 30-member Sensex pack, 19 declined while the rest advanced. Meanwhile, the government has not taken any decision to allow foreign direct investment (FDI) in the retail sector, Finance Minister P Chidambaram told the Rajya Sabha today. FDI was only permitted for cash-and-carry, wholesale and single brand retail. FDI inflow of $13.5 billion in 2006-07 was the highest-ever.If retained earning and swap deals were to be included, FDI would be $19 billion. IT major TCS was the top loser, down 2.60% to Rs 1234.85, on renewed selling. TCS, a leading global IT services, business solutions and outsourcing firm, announced its tie-up with Microsoft Corporation to deliver RFID (radio frequency identification) solutions to global companies. It launched an initiative to develop RFID solutions built on Microsoft BizTalk Other shares from the IT pack were not spared either. Infosys (down 1.11% to Rs 1979.90) and Satyam Computers (down 1.20% to Rs 451) also declined Ranbaxy Laboratories gained 0.60% to Rs 391. The pharma major is planning to invest around Rs 60 crore to upgrade the recently acquired Be-Tabs Pharma units in South Africa. With the revamp of the Be-Tabs facilities, the company expects to lead the way for generics manufacturing in South Africa, says a company statement. The acquisition substantially strengthens the basket of products that Ranbaxy brings to the market — especially in the acute and over the counter product streams. Index heavyweight Reliance Industries (RIL) fell 0.23% to Rs 1590 on 4.64 lakh shares. It staged a smart recovery from low of Rs 1577.25 India’s largest commercial banking firm State Bank of India (SBI) advanced 2.82% to Rs 1112.40 on 6.61 lakh shares, and was the top gainer. Bike maker Hero Honda followed with a gain of 2.32% to Rs 694. REL, Tata Steel and ITC also gained close to 0.70% each. TRF jumped 10% to Rs 684.85 after it reported a 147% growth in net profit in Q4 March 2007 to Rs 10.03 crore in Q4 March 2007. Sales rose 78.49% to Rs 141.61 crore. Net profit jumped 185.29% to Rs 20.17 crore in the year ended March 2007. Sales surged 60.33% to Rs 347.20 crore. Gas transmission firm GAIL (India) dropped 3.5% to Rs 282.30 even as it reported a 66.33% growth in net profit in Q4 March 2007 to Rs 680.73 crore as against Rs 409.26 crore in Q4 March 2006. Sales rose 6.11% to Rs 3883.41 crore, from Rs 3659.81 crore. The net profit rose 3.32% to Rs 2386.67 crore in the year ended March 2007 as against Rs 2310.07 crore during the previous year ended March 2006. Sales declined 1.86% to Rs 16047.18 crore, from Rs 16351.29 crore. Mid-Day Multimedia declined nearly 6% to Rs 44.60,extending its fall triggered by the loss in Q4 March 2007. A couple of days back, the company had reported net loss of Rs 2.89 crore in Q4 March 2007 compared to a net loss of Rs 0.36 crore in Q4 March 2006. Net sales rose 12.80% to Rs 27.85 crore (Rs 24.69 crore). Net profit fell 86.40% to Rs 1.10 crore in FY 2007 (year ended March 2007) compared to a net profit of Rs 8.09 crore in the previous financial year. Net sales rose 1.10% to Rs 105.94 crore (Rs 104.34 crore). US stocks closed flat on Tuesday as investors locked in profit after five straight sessions of gains in blue chips, a day before Fed's meeting on interest-rate policy. The Dow Jones industrial average dipped 3.90 points, or 0.03%, to end at 13,309.07, after falling as much as 75 points. The Standard & Poor's 500 Index slipped 1.76 points, or 0.12%, to finish at 1,507.72. But the Nasdaq Composite Index edged up 0.80 point, or 0.03%, to close at 2,571.75. A crucial US Federal Reserve’s meeting today is scheduled in the evening (IST) today. It looks certain that Fed will hold interest rates steady when it meets and will likely restate worries on inflation, even while nodding to weak growth and an easing of price pressures. The US central bank has held the benchmark overnight borrowing costs steady at 5.25% for six consecutive meetings stretching back to August 2006. The Bank of England is seen lifting rates to 5.5% on Thursday, a move that would put British interest rates above those in the US for the first time since January 2006. The European Central bank (ECB) is expected to hold its rates steady at 3.75% on Thursday,10 May 2007, but signal a hike in June 2007. FIIs remained in buying mode on the bourses on Monday, 7 May. FIIs were net buyers of Rs 96.70 crore of equities on Monday, 7 May. Domestic institutional investors were net sellers of Rs 124.54-crore equities on Tuesday, 8 May 2007. Oil prices rebounded to above $65 a barrel on Wednesday, 9 May, as new attacks on Nigeria's oil industry deepened supply losses, interrupting a six-session losing streak that had driven prices to their lowest level since 26 March. London Brent crude was up 6 cents to $65.60 a barrel.

Health Capsule: Do you know what disease Mr. Amitabh Bachchan is suffering?

Answer: Myasthenia gravis, which is a neuromuscular disorder characterized by variable weakness of voluntary muscles, which often improves with rest and worsens with activity. The condition is caused by an abnormal immune response. Causes, incidence, and risk factors: In myasthenia gravis, weakness occurs when the nerve impulse to initiate or sustain movement does not adequately reach the muscle cells. This is caused when immune cells target and attack the body's own cells (an autoimmune response). This immune response produces antibodies that attach to affected areas, preventing muscle cells from receiving chemical messages (neurotransmitters) from the nerve cell. The cause of autoimmune disorders such as myasthenia gravis is unknown. In some cases, myasthenia gravis may be associated with tumors of the thymus (an organ of the immune system). Patients with myasthenia gavis have a higher risk of having other autoimmune disorders like thyrotoxicosis, rheumatoid arthritis, and systemic lupus erythematosus. Myasthenia gravis affects about 3 of every 10,000 people and can affect people at any age. It is most common in young women and older men.

Treatment There is no known cure for myasthenia gravis. However, treatment may result in prolonged periods of remission. Lifestyle adjustments may enable continuation of many activities. Activity should be planned to allow scheduled rest periods. An eye patch may be recommended if double vision is bothersome. Stress and excessive heat exposure should be avoided because they can worsen symptoms. Some medications, such as neostigmine or pyridostigmine, improve the communication between the nerve and the muscle. Prednisone and other medications that suppress the immune response (such as azathioprine or cyclosporine) may be used if symptoms are severe and there is inadequate response to other medications.

Federal reserve action brings down the US markets--

Indian Markets set

to rise today: Look for today's recommendations:

Stocks on the US bourses, slipped Yesterday after the Federal Reserve opted not to raise interest rates for the first time in two years, as expected, but left the door open for further rate hikes in the months ahead--untill the inflation monster is contained fully. For the US, reigning in the inflation, still remains a top priority...But according to me, we are thinking too much on the headache and not the cause of headache. All must agree with me that single most contributor to inflation is the rise in Crude Oil prices, so the US and the developed coutries as well as Emerging economies should give more priority to solve this issue rather than think on interest rate front. I mean to say is that Fed should now find out what is the cause of headache and not prescribe some pain killers for headache. The US's energy policy is a complete mess and when Crude starts to rise above, there are hues and cries from all corners but people again forget when the crude starts to go down. A permanent solutions should be found out.....It seems the US will start thinking only when Crude reaches $100/ barrel or even more. Thus, the lessons to be learned here is that the US and the rest of the globe, should spend a little less time worrying about whether the Fed will raise interest rates but should care more about this oil problem. Since the US is the largest consumer of Oil worldwide and hence it should think more....Also since India should think of producing more oil or encourage Bio-diesel ventures, for some long term remedies. Also, people should now make a habit to deal with high oil prices, unless something dramatic happens. Although many think that oil is going down, but according to me this is a misplaced opinion. So own a Oil stock or own a alternative oil stock( there are so many, and I have recommeded so many on Various Yahoo Groups). ONGC should have valuations of more than Rs.2000, if we consider the big oil firms world-wide, but see people shy away from investing on it, even it declared bonus. Is this not due to Indian Governments Oil policy, which is in Shambles like that of the US's ? Yesterday, the Sensex closed above 11,000 first time after a long time. This is a bullish indicator along with the interest rate story unfurling from the US. Hope you have enjoyed my recommendations of Rolta Ltd and Sonata Software Ltd, yesterday--both rose yesterday and both came out with excellent results in Q1FY--2006-07. Keep holding: 1.Rolta( SL-->180), 2.Sonata Software( SL-->27), 3.Cummins India( SL--->Rs.191 and Rs.173), 4.Chandra Prabhu International Ltd ( SL--> Rs.6), 5.Soma Textiles Ltd( SL-->Rs.23), and 6.Morgan Ventures Ltd( SL--Rs.19). SAIL and TISCO also rose up yesterday. The steel sector is looking positive again, with the construction activities are picking up steam. The BULL RUN has actually begun. The markets are expected to open with a gap of at least 50 to 70 points gap taking favourable cues from the FOMC meeting of FED. The unanimous views coming out from the US Fed is to keep the benchmark interest rate at 5.25 %( Unchanged), putting an end to all the speculations for and against it. U must have seen in my previous mails that I was pretty sure of this move of Fed, as lot of economic data showed that the US economy is gradually slowing down. Now much depends on the Chinese and Indian economies to avoid the world-wide recession. But I as I seen in a number of International Reports that they have described the Economies of India and China as "DYNAMIC". Besides this yesterday's positive closing and Crude falling below $77 per barrel will also help the Indices charter newer territories.But concerns on oil front remains as: a) Tough Stand of IRAN b) Middle East fighting c) Supply disruptions in Venezuala d) In Nigeria -- Africa's biggest oil exporter and the fifth-largest supplier of crude to the United States -- militant attacks this year have shut down a quarter of the 2.6 million barrels of oil it normally produces each day etc. If u remember, I have predicted $100 / barrel of crude along with charts, in June in www.sumanspeaks.blogspot.com and the group SumanSpeaks. SO BUY ALTERNATIVE OIL / ENERGY COMPAIES, WHOSE VALUATIONS WORLD-WIDE ARE INCREASING.{I have already recommended many in SumanSpeaks} Overall I am very bullish on Today's market, though ASIAN markets are mixed--with Nikkei down by huge amounts as Japanese markets are too much linked with the US economy, as the US is their major trade partner and BOJ increasing interest rate after 6 years. China also came record surplus with the US---exports shooting. So, keep buying good stocks on all declines for some wonderful gains. Today's stock watch: 1. Rana Sugars Ltd--->Rs.26.05.Bullish Pattern on the charts and ethanol story. Invest only in North Indian Sugar companies if u are playing on the Ethanol story. Target is mentioned in www.bcozindia.com [Follow-->Market watch section-->Special Bureau-->Suman Mukherjee]. 2.Shivalik Global Ltd---> Bullish pattern on the charts and Venturing in Real estate--->Rs.24.20. Target is mentioned in www.bcozindia.com 3. ICICI Bank--->Rs. 595. Bullish pattern on the charts Target will be mentioned on www.bcozindia.com. . 4. Orchid Chemicals & Pharmaceuticals Ltd-->Rs.182.85. Bullish Pattern on the charts.Target will be mentioned in www.bcozindia.com. Following are some of the Tit bits on Rolta Ltd: Rolta delivers 41.1% increase in consolidated net profit !!! Rolta India Limited, one of India's leading IT companies, specializing in GeoSpatial Information Systems (GIS), Engineering Design Automation (EDA) and eSolutions (eS), today announced audited financial results for the year ended June 30, 2006. FINANCIAL HIGHLIGHTS: Consolidated Revenue for the year at Rs. 5433.87 Million (USD 118.13 Million) as against Rs. 4256.87 million (USD 92.54 Million) in the previous year, registering a year-on-year (y-o-y) growth of 27.6%. Consolidated Profit After Tax for the year ended June 30, 2006 has shown a robust growth of 41.1% to Rs. 1273.17 Million (USD 27.68 Million), as against Rs. 902.16 Million (USD 19.61 Million) in the previous year. Consolidated Earnings Per Share (weighted average) for the financial year ended June 30, 2006 was Rs. 18.87 (USD 0.41), as against Rs 14.16 (USD 0.31) in the previous year. Consolidated Profit After Tax (PAT) margins improved to 23.8% in the current year, as compared to 21.8% in the previous year. Consolidated Revenue for the quarter ending June 30, 2006, registered a year-on-year (y-o-y) growth of 20.8 %, whilst the consolidated net profit for this period grew at 43.7%, over that of the previous quarter ended June 30, 2005. Consolidated cash and cash equivalents as on 30th June 2006 exceeded Rs. 1800 Million (USD 39 Million). The company has repaid all its debts and has become Debt Free. The Board of Directors have recommended a higher dividend of Rs. 4.00 (USD 0.09) per share for the year ending June 30, 2006, as against Rs. 3.50/- (USD 0.08) per share in the previous year. Consolidated net worth of the Company stood at Rs. 9414.28 Million (USD 204.66 Million) as on June 30, 2006, as against Rs 4566.26 Million (USD 99.27 Million), as on June 30, 2005. Consolidated book value per share as on June 30, 2006 was Rs.117.80 (USD 2.56), as against Rs. 71.69 (USD 1.56) in the previous year. The company successfully raised $90 Million in April 2006 through its inaugural GDR listing on the main Board of London Stock Exchange. Commenting on the results, Mr. K.K. Singh, Chairman and Managing Director of Rolta India Limited said: "We have continued to grow the business across all our segments, both in India and internationally. We are now firmly established as the global GIS service provider of choice and we continued to expand our EDA and eSolutions business, winning multi-million Dollar orders, both from domestic and international markets. Rolta's exclusive partnership with Intergraph, long-standing joint venture with the Shaw Group (Stone & Webster) and our partnership with CA (formerly Computer Associates) for eSolutions has contributed to the continued growth of our company's businesses. Our order book remains strong and we believe the Group is well positioned for further growth in the current financial year. We are also pleased to announce the appointment of Ms. Pulusani and Mr. Patnaik as independent Directors. They are professionals with proven merit and outstanding track record and will add further strategic dimension at the board level." OPERATIONAL HIGHLIGHTS : · GeoSpatial information systems (GIS) Strengthening its dominant position in the domestic market the company has made significant progress by securing large orders for providing turnkey solutions to Telecom/Electric distribution companies, Public Safety & Home Land security agencies (Police), Urban Development and Town Planning departments. The company is uniquely positioned to address new opportunities from the emerging core infrastructure development projects in India. Internationally, reaffirming its standing as one of the leading providers of GIS and Photogrammetry services, the company has executed large projects for 3D city modeling using high end Photogrammetry technology and created digital networks for telecom, electric, gas & water companies, worldwide. · Engineering Design Automation (EDA) The company has enhanced its leadership position in India and secured large contracts for providing engineering design automation solutions and design services to major EPCs and Owner operators. Internationally, the company executed large contracts in plant Information management for customers in USA, Europe and the Middle East. The company has also ventured into providing specialised services in the area of ship design. The joint venture company Stone & Webster Rolta Limited (SWRL), has achieved a very healthy growth during the year. Besides providing engineering design services for S&W projects globally, the JV has also executed engineering, design, procurement and construction management projects for large refineries and petrochemical companies in India. Stone & Webster being one of the leaders in Nuclear energy technology, the company through its JV is well placed to participate in this high -growth opportunity. · eSolutions (eS) During the year the company achieved exponential growth in the eSolutions business group, in partnership with CA for eSecurity and network management, for their global customers. The company also offers services in high-end gaming, serious animation, rapid application development, software testing and RFID solutions. Further strengthening the quality of its offerings, the company has added the BS ISO/IEC 27001 certification; only five Indian companies have received this accreditation so far. The company is currently certified at CMM level 5 and is at an advanced stage for CMMi certification. In April 2006, the company made a successful debut on the London Stock Exchange as one of the very few Indian companies to list on the exchange's main market and this has helped it to widen its investor base and participate in International regulatory best practices e.g. the company will publish its financial as per International Financial Reporting Standards (IFRS), audited by Grant Thornton in its annual report. During the year the company added over 800 professionals and now has a strength of almost 3000 professionals. Continuing its expansion program, the company is at an advanced stage of setting up two new subsidiaries in the Middle East and one in Australia. [From Yahoo Group Mail] Best wishes, Suman Mukherjee India. www. sumanspeaks.blogspot.com