Orchid Chemicals and Pharmaceuticals Ltd: Buy

CMP: Rs.54.65

Introduction: Established in 1992 as an export-oriented unit (EOU), Orchid Chemicals & Pharmaceuticals Ltd. (Orchid) is a vertically integrated company spanning the entire pharmaceutical value chain from discovery to delivery with established credentials in research, manufacturing and marketing. It ranks among the top 15 pharmaceutical companies in India and enjoy a multi-therapeutic presence across segments like anti-infectives, anti-inflammatory, central nervous system (CNS), cardio vascular segment (CVS), nutraceuticals and other oral and sterile products. Its pharmaceutical solutions include active pharmaceutical ingredients (API), finished dosage forms, new drug discovery (NDD), novel drug delivery systems (NDDS) and contract research and manufacturing services (CRAMS). It is globally present across 70+ countries through alliances, joint ventures and partnerships with globally reputed majors.

Shareholding Pattern: The promoters  hold 32.28% while the general public holds 63.14% in the company. Among the general public, the FIIs hold 3.26% while the DIIs hold 4.57%. The corporate bodies hold 22.85% of the shares of the company. Also, in the public category, the Serum Institute of India Ltd along with the PACs holds 14.84% stake in the company. Serum Institute of India is the fifth biggest vaccine maker by volume; the top four being GlaxoSmithKline, Sanofi-Aventis, Merck and Novartis. Half the children in the world are immunized by vaccines made by Serum Institute of India Ltd, which is the world's biggest maker of measles and DTP vaccines. Serum produces a billion doses a year selling in 140 countries. It is one of the world's lowest cost producers of vaccines and had sales of $250 million and net profits of $107 million.

Financials: The total income of the company in Q2FY14 came out to be Rs.371.60 Cr as against Rs.313.53 Cr in the same period previous year. The PBDT of the company in Q2FY14 came out to be Rs.3.51 Cr as against a loss of Rs.52.93 Cr in the same period previous year. The CEPS for Q2FY14 came out to be Re.0.50 (gain) as against (-) Rs.4.73 (loss) in Q2FY13. This shows great improvement in the fundamentals of the company. Not only that, the OPM has improved to 26.66% in Q4FY14 as against 5.66% in the same period previous year. Also, a substantial improvement in NPM can also be seen in Q2FY14 as against Q2FY13. 

Triggers: 
(i)  The Book value of the shares of the company is Rs.69.29 against the CMP of Rs.54.65. The P/BV of Orchid Chemicals and Pharmaceuticals Ltd is 0.79, while let's check this value, in case of some of its peers:
a) Dr.Reddy's Laboratories Ltd--5.59
b) Sharon Bio Medicine Ltd--2.49
c) TTK Healthcare Ltd--4.07
d) Aarti Drugs Ltd--1.88
e) Syncom Formulations Ltd--3.89
Thus we see that the shares are undervalued in terms of even Book Value as compared to many of its established competitors. Moreover, the market cap of the company is only Rs.385.02 crore as against the 9MFY14 sales of Rs.1008.85 Cr and FY13 sales of Rs.1906.73 Cr. 
(ii) The company got its CDR scheme approved recently and now the Hospira deal can go through, which is a big positive for the company. 
(iii) The company’s addressable market size for the products under development in non-antibiotics segments was around $16 billion and the growth in the current non-antibiotics formulations business would come from timely filing and launches of products in the next 2-3 years. This business with its new launches is expected to attain critical mass by FY 2018-19. 
(iv) The company is expecting to monetise its research and development (R&D). Its new chemical entities research in therapeutic areas such as diabetes, obesity, inflammation, pain management and oncology will result in out-licensing opportunities in the years to come.
(v) It is also working towards expanding customer base in new geographies including establishment a strong footprint in the EU region. It would also look at strengthening presence in emerging markets, including Latin America and Asia Pacific.
(vi) The company also see strength in alliances for its active pharmaceuticals ingredients (API) and formulations business. 
(vii) Orchid was admitted for the CDR process in August 2013. The scheme includes sale of Orchid Pharma’s pencillin and penems API business together with its manufacturing facilities at Aurangabad, Maharashtra, and associated R&D facility at Sholinganallur, Chennai, for a cash consideration of about Rs.1,348 crore. It also includes repayment of a portion (Rs.681 crore) of the total debt to lenders out of the sale proceeds and restructuring of the balance debt of Rs.2,866 crore. Around Rs.430 crore from the sale proceeds would be used for meeting the working capital requirements.
The restructured debt together with funded loans would have to be repaid over a period of eight years starting from April 2015, subject to regulatory approvals. This gives much needed breathing space for the company. 
(viii) The company expects the working capital to strength on the back of a Rs.1,500-crore topline it anticipates by utilising more of its existing capacity. The Alathur facility alone has a capacity of $200 million topline.

Conclusion: Considering all the points mentioned above it has been found that the scrip of Orchid Chemicals and Pharmaceuticals Ltd is ready for re-rating in the Indian bourses. The investors are suggested to buy the scrip at the CMP of Rs.54.65 and hold it for a short term target of Rs.71-72. Please keep a SL of Rs.47. 

Vijay Shanthi Builders Ltd: Steady Upmove Expected

CMP: Rs.11.45

The List of Projects

The scrip of the Chennai based builder Vijay Shanthi Builders Ltd (BSE Code: 523724) is looking attractive at the current price of Rs.11.45. The scrip has a book value of Rs.44.06, 9MEPS of Rs.1.15, while the promoters' holding has slightly increased to 54.12 in March, 2014 quarter from 54.10 sequentially speaking. Moreover it has a 9MPE of 9.96, which is much below the industry average. This gives the much needed space for the scrip to move up. Also, the company has good land bank in and around Chennai (Madras). 

One should buy the scrip at the CMP of Rs.11.45 for a target of Rs.15.5. 

Jaiprakash Power Ventures Limited: Steady Upmove Expected

CMP: Rs.16.03

Recently, Jaiprakash Power Ventures Ltd (60% subsidiary of Jaiprakash Associates) concluded the much-anticipated sale of its operational hydro plants for a consideration of about Rs.100 bn. 

JPVL focus to shift on coal-based assets: JPVL sold its ownership in two operational assets—Baspa (300 MW) and Karcham Wangtoo (1,000 MW) —for an asset value of about Rs.100 bn, of which equity value is Rs.38 bn while the balance debt would be assumed by the acquirer. 

Upon conclusion of the current transaction, JPVL will have a debt of Rs.166 bn (assuming entire proceeds are used to retire debt), that will have to be serviced from ramp-up of the coal-based projects—Bina (500 MW) and Jaypee Nigirie (1,320 MW) as well as resumption of Vishnuprayag (400 MW) that has been shut down for most of FY14 on account of the flood.

Meanwhile, Jaiprakash Power Ventures Limited informed on 16th April, 2014 that it's 400 MW Vishnuprayag Hydro Power Plant, which was shut down due to unprecedented floods of very high intensity in the Alaknanda river on June 16th 2013, has resumed power generation w.e.f. April 12th 2014. There are also rumours that the promoters have good connection with Satish Chandra Mishra, a member of Rajya Sabha and General Secretary in Bahujan Samajh Party. It is a known fact that BJP has a history of forming coalition governments with the BSP. If NDA comes to power, then we could see, similar moves from the either parties. 

The scrip should steadily move up from here and touch the target of Rs.21, after crossing the 1st resistance of Rs.17.90. The investors and traders are suggested to buy the shares of the company on all declines. A strong buy is recommended. 

Market Mantra

In line with expectation, the market tanked yesterday for the 2nd day in  a row, mostly due to clueless DIIs. Nifty made a high of 6748 in initial trade and fell down to a low of 6665 during second half and then finally closing at 6675 with a net loss of 58 points.
The point which must be remembered is that Nifty is near its life time high but we are in a new BULL PHASE. Any bull market starts with skepticism and this time also we witnessing the same with profit booking coming above 6800 level. However, the long term picture shows great strength in the market and any short term dip is a buying opportunity. Though Nifty_Future long positions may still be avoided but investors / traders should concentrate on picking up stocks from mid and small cap space. 

Resistance: 6700 / 6740
Support: 6640 / 6600
Marg Ltd hit another Buyer Freeze on the opening trade at Rs.1.05. The scrip has been hitting continuous buyer freeze since it was recommended. 
Today's Call: (i) Buy J P Power at Rs.15.90, T--Rs.21, SL--Rs.14.4.There are lot of positive developments in the company. Jaypee is the country's third largest cement producer, the largest private sector company in hydropower with 1,700 MW, and has four thermal power plants totaling 5,120 MW slated to go on stream within a short time. JAL, the group flagship, has an engineering and construction wing which remains occupied mostly with in-house work. It also has the largest land bank in the National Capital Region.
(ii) Buy Orchid Chemicals Ltd at Rs.54.20, T-Rs.62, SL--Rs.49. It was earlier one of the hot favourite of the ace investor, Rakesh Jhunjhunwala. Later when its financials started to worsen he exited the counter and the stock price crashed. Meanwhile, the Company tried to reduce its debt through a CDR package, but it got delayed due to red-tape-ism. However even without implementing CDR, company turned to EBITDA positive in latest quarter. Now that the CDR package has been approved by the lenders, the good days are ahead for the scrip. According to some analysts: with this approval the Company can now complete the deal with Hospira and concentrate in other existing business (antibiotics API and oral formulations), and niche therapeutic products. Considering company's strong R&D pipeline, there are bright prospects for the company going forward. Recently U. S. health regulator Food & Drug Administration (FDA) inspected its Irungattukottai, Chennai-based oral formulations facility  and approved it without any observations.
(iii) Book profits in PVP Ventures Ltd at around Rs.8.90--8.70, as the scrip has run more than 40% in just 3-4 days. Let it cool down, then again you can invest in the scrip.
(iv) Average Core Education Ltd at Rs.13.10-13.20, A2Z Maintenance and Engineering Services Ltd (Rs.10.70) and Vijay Shanti Builders Ltd at Rs.11.40-11.50. Also, accumulate IVRCL Ltd (Rs.14.70) on all declines.

WINNING STROKES: THINK DIFFERENT

Marg Ltd hit another upper  circuits at Rs.10.53. The scrip if you remember was recommended around Rs.7.65 on on 3rd April, 2014 to the Premium Service Members. Since then the scrip has been  hitting  non-stop buyer freezes. 

Nifty (Futures) was given a SELL today in the morning inputs to the Premium Members at around 6750, for a target of 6600, SL--6820. The Nifty_Futures crashed on the bourses making a low of 6688.50, before closing at 6694.30. There are FII net sell figures of Rs.44.69 Cr today, while DIIs sold around Rs.347.7 Crores of equities--which means it is the DIIs who are nervous.  This market is only for experts and hence, kindly team up with any veteran in the game, if you really want to make money. the Paid Service or my recommended brokerage houses, to know the next movement of Nifty or to cover your losses. In the Premium Service you will get F&O calls too sometimes (like today), apart from the general cash market calls. Besides, this you would get my support during the market hours.

PVP Ventures Ltd hit another 20% buyer freeze today, after this Hyderabad-based multi-business house with interests in real estate, media and entertainment, in partnership with retired cricketer Sachin Tendulkar, won the rights to own a Kochi-based soccer club that is part of the eight-city Indian Super League. PVP also owns Hyderabad Hotshots, the inaugural Indian Badminton League champion team. Also, news is emerging from Hyderabad that Potluri Vara Prasad, (PVP) has joined the Telugudesam Party (TDP) which is hot favourite to win in this general elections is in tie up with the Bhartiya Janata Party (BJP). It is to be noted that Potluri Vara Prasad is an Indian Entrepreneur, film financier, producer, philanthropist and educationalist hailing from the commercial city of Vijaywada, Seema Andhra (formerly Andhra Pradesh). He is the co-founder of the Engineering School, Prasad V Potluri Siddhartha Institute of Technology, in Vijaywada and owns PVP Energy, PVP Cinema and PVP Foundation  under PVP Ventures. He has produced a number of South Indian Films with Naan Ee grossing Rs.125 Cr. Also, my friends this blog can be directly translated into Telugu Language, after pressing the translate button. This I decided, after giving my full support to Telugu Desham Party (TDP). The Telugu Desam Party founded by Dr N T Rama Rao in 1983 aimed at safeguarding the political, economic, social and cultural foundations of telugu speaking people in the country. In Principle and also in Practice it is the mission of the TDP the party to protect the dignity and self respect of Telugus and also ensure provision food, shelter and clothing to the common man at affordable and sustainable prices and achieve empowerment of women, youth and all backward segments of society in Andhra Pradesh (Now Telengana and Seema Andhra).

Profit booking was suggested to the Paid Members, in Shree Ganesh Jewelry House (I) Ltd after it touched the 2nd target of Rs.41 and  nearly touched the 3rd target of Rs.42 (intra-day high of Rs.41.75). I am  happy that many could make good money in this scrip after a long wait of nearly 3 months. But still an appreciation from Rs.25.50 to Rs.41.75 is  not at all bad. Isn't it?

Jai Balaji Industries Ltd hit another buyer freeze today at Rs.14.72. The scrip has been hitting non-stop buyer freezes since it was recommended. It is expected to hit some more buyer freezes on its way to Rs.41-42. 
The mid and small caps have come down from their recently made  highs. It is time to start accumulating them, especially, IVRCL Ltd (Rs.14.53), A2Z Engineering and Services Ltd (Rs.10.86) and Vijay Shanthi Builders Ltd (Rs.11.26). 

Market Mantra

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

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

Resistance: 6800 / 6820 

Support: 6745 / 6700

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

Please Click On the Photo to Expand

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

Sachin Tendulkar begins second innings, this time as entrepreneur

Mihir Vasavda | Mumbai | Updated: Apr 14 2014

Sachin Tendulkar has also teamed up with the PVP group to co-own the Mumbai franchise of the International Tennis Premier League, which will be held later this year. (IE Photo)

Barely four months into his retirement Sachin Tendulkar’s transition from being his sport’s icon to a sports entrepreneur already seems complete. The batting legend was named as the co-owner of the Kochi franchise in the much-hyped Indian Super League, along with Hyderabad-based PVP Ventures Ltd.

And it doesn’t end here. Tendulkar has also teamed up with the PVP group to co-own the Mumbai franchise of the International Tennis Premier League (ITPL). Prasad Potluri, the chairman and managing director of PVP Ventures, said on Sunday that they have reached an agreement with the ITPL organizers and would make a detailed announcement soon. “That is already confirmed. We, along with Sachin, have acquired the Mumbai franchise for the ITPL. The deal was finalised a few days ago and we will share the details in an elaborated way soon,” Potluri said.

Ready to serve

The ITPL, a brainchild of multiple doubles Grand Slam winner Mahesh Bhupathi, is scheduled to be held in November-December this year and the Mumbai leg of the four-city tournament will be played on December 7, 8 and 9. The Mumbai team is headlined by world No. 1 Rafael Nadal, who is believed to be paid $1 million per night. The team also consists of American great Pete Sampras, doubles specialist Rohan Bopanna, Sania Mirza, Ana Ivanovic, Gael Monfils and Fabrice Santoro.

On Sunday, PVP Ventures and Tendulkar were also awarded the Kochi franchise for the ISL. Their bid is believed to be valued at approximately Rs 15 crore. Based on his decades of experience, Potluri said Tendulkar, a self-proclaimed tennis lover, will be providing strategic support whereas PVP Ventures will take care of the ground work. The maestro is also believed to be a keen football follower and he described his latest venture as a ‘compelling and challenging proposition.’

“Based on the various insights shared by the team, the opportunity of the Kochi club seemed like a compelling and challenging proposition. With the Kochi club, we will strive to ‘score our goals’ and play a part in developing the game of football across the country,” the 40-year-old Tendulkar said in a statement.

The PVP group claim to be one of the largest investors in the sport and entertainment industries. They had also bid, albeit unsuccessfully, for the Hyderabad franchise in the IPL two years ago. They made their first foray into Indian sport last year when they acquired the Hyderabad franchise in the Indian Badminton League (IBL).

More receptive

Tendulkar, meanwhile, has been linked to several such ventures in the past, including the IBL and i1 Super Series, which failed to take off. Post retirement, though, he has looked more receptive to such ideas. Potluri said it did not take much convincing to bring him on board for both the projects. “We have been friends for a long time and have discussed these opportunities earlier as well. Sport is Sachin’s way of life. He likes tennis a lot and is passionate about it. But he is game for any sport,” Potluri said. “Our objective is to develop sport in islands of excellence. Hyderabad is the country’s badminton capital and Kochi is well known for football.”

With the inaugural edition of the ITPL to begin immediately after the ISL ends, one of the biggest challenges for the management would be to mobilize resources for both their endeavors. But Potluri was unperturbed. “We have the management bandwidth for the tennis and football leagues. By investing in so many leagues, you get to have economies of scale. We have a focused management team handling all these multiple disciplines,” Potluri said.

Courtesy: The Financial Express

PVP and Sachin Tendulkar become partners

Monday, April 14, 2014: The Indian Super League, soccer's major league foray into India, has today announced that Prasad V Potluri (PVP) in partnership with Bharat Ratna Sachin Tendulkar has won the rights to own a Kochi based soccer club that is part of the eight city league. PVP has a significant presence in real estate, media and entertainment and also owns Hyderabad Hotshots the inaugural Indian Badminton League champion team, this partnership with the legendary Indian Icon is bound to usher in a new era into Indian Sports.

Statement from Prasad Potluri, Chairman & Managing Director - PVP Ventures Limited

"We look forward to developing the Kochi club in the Indian Super League and are proud to partner with one of India's greatest sportsmen, Sachin Tendulkar, in our efforts. We will tap the potential talent as also channelize the fervor and passion for football across the country to enhance the quality and competitive level of the sport. The following and enthusiasm of football in the southern part of the country presents a fertile opportunity for us to execute our plans and leverage global expertise for the development of a world class club." 

Statement from Sachin Tendulkar

"I will always remain a sportsman at heart who is keen to positively impact the sporting fabric of the nation. The Indian Super League presents a great opportunity to develop a platform for the youngsters to learn and enhance their talent to develop into outstanding players. It has been an interesting experience interacting with the young, passionate team at PVP Ventures led by Prasad Potluri. Based on the various insights shared by the team, the opportunity of the Kochi club seemed like a compelling and challenging proposition. With the Kochi club, we will strive to 'score our goals' and play a part in developing the game of football across the country."

Courtesy: Indiaglitz

Tendulkar, Ganguly foray into football, win Indian Super League bids

[Editor: So the rumours came out to be true!! Accumulate, as much as possible the shares of PVP Ventures Ltd (Rs.5.78), and keep holding. Join the Paid Service or trade through my recommended brokerage  house and cover all your losses]

MUMBAI, APRIL 13:  Sachin Tendulkar and Sourav Ganguly were among the host of high-profile winning bidders as the organisers of the much-anticipated Indian Super League today unveiled the eight franchises for the event that is set to take Indian football by storm.

The bid winners for the eight franchises of the league, which is scheduled to be held in September-November, was announced here by organisers IMG-Reliance after evaluation of the bids by a seven-member panel.

Tendulkar bagged the Kochi franchise along with PVP Ventures while Ganguly, who bid by forming a consortium with Spanish League giants Atletico Madrid and businessmen Harshavardhan Neotia, Sanjeev Goenka and Utsav Parekh, won the Kolkata franchise.

PVP has presence in real estate, media and entertainment and also owns Hyderabad Hotshots the inaugural Indian Badminton League champion team. Prasad Potluri, Chairman & Managing Director - PVP Ventures Ltd, in a statement said “We look forward to developing the Kochi club in the Indian Super League and are proud to partner with one of India’s greatest sportsmen, Sachin Tendulkar. We will tap the potential talent as also channelise the fervor and passion for football across the country to enhance the quality and competitive level of the sport. The following and enthusiasm of football in the southern part of the country presents a fertile opportunity for us to execute our plans and leverage global expertise for the development of a world class club.”

Sachin Tendulkar said “I will always remain a sportsman at heart who is keen to positively impact the sporting fabric of the nation. The Indian Super League presents a great opportunity to develop a platform for the youngsters to learn and enhance their talent to develop into outstanding players."

"It has been an interesting experience interacting with the young, passionate team at PVP Ventures led by Prasad Potluri. Based on the various insights shared by the team, the opportunity of the Kochi club seemed like a compelling and challenging proposition. With the Kochi club, we will strive to ‘score our goals’ and play a part in developing the game of football across the country.”

The Mumbai franchise went to Bollywood star Ranbir Kapoor and Bimal Parekh while another tinsel town biggie Salman Khan bagged the Pune franchise together with Kapil Wadhawan and Dheeraj Wadhawan of the Wadhawan Group.

Another actor John Abraham teamed up with I-League side from the northeast, Shillong Lajong, to bag the franchise to be based in Guwahati.

The remaining three teams went to Sameer Manchanda—led Den Network for Delhi, Sun Group, the owners of IPL team Hyderabad Surisers, for Bangalore and the consortium of Venugopal Dhoot of Videocon, Dattaraj Salgaocar and Shrinivas V Dempo for Goa.

Organised by IMG-Reliance in association with Star India, the league has the backing of AIFF, and is set to see big names as icon players such as former France international Robert Pires and ex—Sweden and Arsenal player Fredrik Ljungberg.

Sources said that the organisers received positive response from more than 30 interested parties to its ’Invitation To Bid’ tender notice, which closed on March 27.

It is learnt that around 18 to 20 bidders had put in their money on ISL either through forming a consortium or individually. This is for the first time that a franchise property in sports in India has elicit such a response from the business as well as sports and Bollywood community.

Courtesy: The Hindu Business Line

Gold import fall helps narrow trade deficit

Please Click on the Chart to Expand

New Delhi, Apr 12, 2014: A series of import curbs imposed by the government helped cut the trade deficit significantly in 2013-14 but two consecutive months of decline in exports meant that the growth target for the last financial year could not be achieved.

India's trade deficit narrowed to a little under $138 billion during the last financial year, compared to over $190 billion in the previous year on account of an 8% fall in imports, latest data released by the commerce department on Friday showed. Non-oil imports fell over 13% to $283 billion as gold imports dropped sharply on account of a series of restriction imposed by the government.

Gold and silver imports declined 40% to $33.5 billion in 2013-14, compared to close to $56 billion in the previous year. In March, import of precious metals was down by 17% to $2.75.

But, a poor export performance during February and March meant that the value of shipment out of the country rose 4% during the financial year as the gains of rupee depreciation seem to have vanished in recent months. Although the government was hopeful of meeting the target of $325 billion when the numbers for January were released, the poor show during the last two months was something that the commerce department was not expecting. Exports finished at $312.4 billion in 2013-14.

The other bad news in March was the trade deficit, which hit a five-month high of $10.5 billion, making it tougher for policymakers to immediately remove import restrictions on gold.

The government had to resort to unconventional measures to check rising import bill in the wake of record current account deficit, which threatened a ratings downgrade and was taking a toll on the Indian rupee. Along with restrictions, the government increased the import duty to 10%, resulting in a significant decline in shipments of the yellow metal, although there has been a spike in smuggling.

While a lower trade deficit will help keep the current account deficit under check the dark clouds haven't fully gone away. But, economists are drawing comfort from the improved numbers.

"Based on today's trade data, our tracking estimate for the first quarter current account balance is -$2.3 billion (a deficit of -0.5% of GDP) compared with -$4.1billion in Q4 2013 (-0.8%). This would take the full-year current account deficit to 1.8% of GDP in 2013-14 versus 4.7% in 2012-13. Looking ahead, as gold restrictions are relaxed further and growth starts to rise during the latter half of 2014-15, we expect the current account deficit to widen to around 2.3% of GDP in 2014-15, larger than in 2013-14, but still within the sustainable range," Nomura economists Sonal Varma and Aman Mohunta said in a note.

Courtesy: The Times of India

Investors Required For Real Estate Projects All Over India

I am looking for  investors in the LUCRATIVE REAL ESTATE PROJECTS all over India. The minimum investment should be in the range of Rs.4-5 crores and there is no maximum limit. 

The land for development is available in Prime Locations of the cities, like Kolkata and its suburbs, Nasik, Mumbai and Thane, Pune and its adjoining areas, Indore, Hyderabad, Chennai, Bangalore, etc. etc. 

For the moment there is an offer from Kolkata (Calcutta), West Bengal where the returns could be as high as 40% plus  (net) in just 7-8 months. I shall be monitoring the project from  my end through my men there or I would take personal interest in the project. There is also a low budget (Rs.2 Crore) project in South Assam. Here also my own team will be helping the investor. 

If any Indian or an NRI or a business concern is ready to fund the projects, he/she/they can send me a mail at: suman2005s@rediffmail.com / sumanm2007s@gmail.com at the earliest. 

The concerned person or the firm is assured of good returns over a period. The investor or the investing concern would be directly shown the plot of land and at the same the time a project report will be sent, for scrutiny before they put their money there. If he / she / the firm is satisfied with the terms and conditions mentioned in black and white, then only the question of investment will come. The fund flow in all the projects would be monitored by me and would be reported on regular basis to the investors or investing concerns. 

Gujarat NRE Coke: Steady Upmove Expected

The coking coal-maker company has received the formal approval for the restructuring of the debts, from the Empowered Group of Corporate Debt Restructuring Cell last month. According to the terms of package, the debt will be restructured for 10 years door-to-door with two-year moratorium and ballooning repayment. "There will be an additional need based working capital aggregating to Rs 370 crore. The company will get fresh term loan of Rs 50 crore for completing the waste heat recovery based power plants at Dharwad, Karnataka," the company said in its filing.

Photo: The Telegraph

Last year, there were some media reports that Jindal Steel & Power Ltd has acquired a majority stake in Australian coking coal miner Gujarat NRE Coking Coal Ltd, partially securing the supply of this scarce raw material for its steel units.  Gujarat NRE Coking Coal (GNCCL) is a subsidiary of Arun Kumar Jagatramka’s Calcutta-based Gujarat NRE Coke Ltd, one of India’s top independent producer of metallurgical coke. Guj NRE, operates two hard coking coal mines in the southern coal fields of New South Wales, Australia. 

The mines, NRE No. 1 Colliery and NRE Wongawilli Colliery, contain estimated coal reserves of 125 million tonnes (mt) and have a potential mine life of over 30 years. The hard coking coal production is being increased from the current level of around 1.5mt per annum to over 5mt by 2016, according to information available on the website of the firm. 

The company also enjoys the advantage of being close to a port facility, Port Kembla Coal Terminal. Access to this terminal offers favourable transportation logistics and reduces transportation costs, the website informed.

The current market capitalisation of Gujarat NRE Coke Ltd (Rs11.89) stands at Rs.745.94 crore and the book value of the shares of the company is Rs.27.29. The company has reported a standalone sales of Rs.193.86 crore and a Net Loss of Rs.277.48 crore for the quarter ended Dec 2013.

The scrip is on an uptrend and should reach Rs.15.5-16, within the next few trading sessions. 

Corporate honchos test political waters

[Editor: Lanco Infratech Ltd was recommended to the Paid Groups at Rs.7.70 on 7th April, 2014. Yesterday (Friday) the scrip closed at Rs.8.26 after touching a high of Rs.8.39]

Nagaprasad Kandimalla

Hyderabad, March 28, 2014: The bond between politics and business is getting stronger by the day. 

The elections will see a number of corporate honchos testing their popularity on the political firmament. Several of them have already quit the comfort of boardrooms and hit the heat and dust of the campaign trail.

Big wigs

In Andhra Pradesh, at least a dozen ‘greenhorns’ from the corporate world have thrown their hat into the election ring.

The list includes Jaydev Galla of the Amara Raja Group; Ayodhya Rami Reddy of Ramky Infra; Potluri Vara Prasad of PVP Ventures, promoters of the Rs.600-crore diversified Butta Group; Konda Visweswar Reddy, a technocrat and innovator; Koneru Prasad from the realty sector; Naga Prasad of the Lanco Group; and Malla Reddy from the education and healthcare sector.

Seemandhra region

Interestingly, most new entrants are focussed on the Seemandhra region, where the bifurcation of the State is expected to see a build up of new capital and huge investments and incentives to spur growth.

Also, the region is known for its entrepreneurs who have contributed much to the emergence of Hyderabad on the international industrial horizon.

In the last two decades, the State has seen a rise in entrepreneurship in the IT, infrastructure, realty, hospitality, healthcare and entertainment sectors under Chief Ministers N Chandrababu Naidu and YS Rajasekhara Reddy (YSR). Both had considerable clout in the corridors of power in Delhi when they were ruling the State.

This spawned a large number of new enterprises (mostly in the infrastructurel sector), and saw the phenomenal growth of groups such as GMR, GVK, Lanco, Ramky, IVRCL and Gayatri.

It’s, therefore, no surprise that politics and business are deeply intertwined in the State.

YS Jaganmohan Reddy, who built a large business group when his father YSR was the Chief Minister, is perhaps the best example.

Jagan’s party, the YSR Congress, is a strong contender for power in the Seemandhra region. His business interests range from media to power and cement.

Jaydev Galla, Managing Director of the Rs.3,500-crore Amara Raja Group, whose family had been associated with the Congress for several decades, switched to the Telugu Desam Party (TDP) recently. The 48-year-old businessman is contesting for the Guntur seat this time.

Ayodhya Rami Reddy, another forty-plus, first generation entrepreneur, who built the infrastructure giant Ramky Group into a Rs.6,000-crore entity, is taking the plunge in his home constituency of Narasaraopet, also in Guntur.

Rami Reddy, who has been figured in a chargesheet filed in the disproportionate asset case against Jagan, is with the YSR Congress Party.

The FIR says his group received favours in the allocation of land to Ramky Pharma City near Visakhapatnam. The emergence of Telangana as a separate State seems to have opened opportunities for businessmen the region as well. C Malla Reddy, promoter of an education and healthcare group, has joined the TDP, while P Sadanand Reddy of IDEAL Industrial Explosives wants to test the waters on a BJP ticket.

Konda Visweswar Reddy, who had worked with Wipro, GE Healthcare and now helms Citadel Research, has both political lineage and business connections.

His grandfather was Konda Venkata Ranga Reddy, former Deputy CM after whom Ranga Reddy district is named. His wife Sangeetha Reddy is the Executive Director of the Apollo Group and daughter of group Chairman C Pratap Reddy.

But the decision to jump into politics about eight months ago was provoked by the strong feeling that professionals can bring a change to the system, he says.

Clean politics

“I feel there is space for clean politics, and the public perception is changing as indicated by the Aam Aadmi Party.” He is a likely candidate of the Telangana Rastra Samithi from Chevella for the Lok Sabha.

Courtesy: The Hindu Business Line

PVP knocks TDP door for Vijayawada ticket

[Editor: PVP Ventures and Group of Companies is owned by Potluri Vara Prasad (PVP) who is into construction and contracting.

Investments: Rs.146.97 crore in Jagathi Publications--a company owned by Y S Jaganmohan Reddy and his father former CM Y S Rajasekhara Reddy. 

Returns: PVP Business Ventures allowed to buy 595 acres in Nadargul (Hyderabad) in Saroonagar mandal of Rangareddy district.

I aggressively bought the shares of PVP Ventures Ltd (Rs.5.78) for some of the clients for whom I do the trading, in their trading / demat accounts, as I strongly feel that the scrip is going to race past Rs.10, in the next few trading sessions] 

Prasad V. Potluri, CMD, PVP Ventures

Jan 24, 2014: Noted industrialist Potluri Vara Prasad (PVP) made a vain bid to get into the good books of TDP president N. Chandrababu Naidu with an eye on Vijayawada parliamentary constituency ticket recently, according to Telugu Desam Party sources.

Exactly a year after the new in-charge was named, an attempt was made for change of guard in the constituency.

A senior leader of Krishna district, sources said, accompanied Mr. Vara Prasad and introduced him to Mr. Naidu. The TDP chief welcomed him, but decided to show restraint and suggested him to look for some other constituency. Mr. Naidu told them that he found no valuable reason to replace the present in-charge, sources added.

Mr. Vara Prasad’s associates and well-wishers were said to have advised him to contest on TDP ticket in the wake of recent political developments like the possibility of the TDP aligning with the BJP.

The non-conducive situation in YSR Congress was another major reason behind Mr. Prasad approaching the TDP, sources said.

The TDP senior leader was learnt to have tried to garner the support of sitting MLAs from segments in Vijayawada Parliamentary constituency. They, however, politely declined to extend him any support.

The party leaders from East Krishna also expressed similar views and did not encourage the proposed replacement. He, however, managed to gather support of senior party leaders in Hyderabad and arranged a meeting with Mr. Naidu, which did not yield desired results.

It may be recalled that the party leadership zeroed in on Kesineni Srinivas (Nani) at a time it was searching for a candidate who could shoulder the expenses involved in the ‘Vastunna Meekosam’ padayatra of Mr. Naidu as well and not just election expenses.

The padayatra had changed the equations in the party a year ago.

Mr. Nani, a lateral entrant into the party, emerged as a successful contender for Vijayawada Lok Sabha ticket. It marred the prospects of former TDP Urban president Vallabhaneni Vamsi.

Sitting MLAs decline to support the PVP candidature.

Source: The Hindu Business Line

WINNING STROKES: THINK DIFFERENT

The dream run of Shree Ganesh Jewelry House (I) Ltd has at last began, with the scrip touching Rs.34.20, intra-day. The scrip is expected to touch Rs.41-42, in the short term. One should accumulate it on all declines. Q4FY14 results are expected to be better than Q3FY14. 

Glodyne Technoserve Ltd hit another buyer freeze in the mid-afternoon trade at Rs.6.83. The scrip was asked to be recommended to the Paid Groups at Rs.4.92. 

Unitech Ltd recommended a couple of days back to the Premium Members at Rs.15.70, today touched Rs.17.34 before closing at Rs.1.85. The scrip is slowly moving towards Rs.21-22. 

Jai Balaji Industries Ltd which I bought for some of my clients at around Rs.12.30, for whom I do the trading, today hit another buyer Freeze at Rs.13.37. The current market cap of the company at Rs.89.90 Cr is simply a joke considering the enterprise value of the company including its mines. I expect the scrip to hit non-stop buyer freezes in the coming days. Buy the scrip on any given opportunity, as the scrip could be heading towards Rs.29-30, in the coming days. 

A2Z Maintenance and Engineering Services Ltd today touched Rs.12.70, before cooling down at Rs.12.09 at the end of the day. The company has completed a master restructuring plan and has order book in hand. The company henceforth is expected to do much better, according to my close sources. Incorporated in 2002, A2Z Maintenance & Engineering Services Ltd. (AMEL) is an established EPC company provides services to the power transmission and distribution sector with a focus primarily on the distribution segment. The company has diversified its EPC services to power generation companies and companies in other sectors such as road and telecommunications. In addition, the company is also in other businesses such as (i) power generation from renewable energy sources; (ii) municipal solid waste management services (iii) facility management services; and (iv) developing information technology solutions for power utilities. The power sector in India is slowly moving from a regulated return framework to a market driven pricing mechanism. This is providing a major boost for private entrepreneurs to enter the power sector and set up projects. Demand for engineering, procurement and construction services in the power transmission lines and power distribution businesses is largely dependent on development, demand and new investments in the power generation, transmission and distribution sectors. AMEL is engaged in the FMS business (Facility Management Services) since its incorporation in 2002.  The company’s services in the FMS business include engineering maintenance (mechanical, plumbing, electrical, HVAC, DG Set), energy saving solutions, janitorial services, parking management, property lease management, telecommunications tower maintenance and security services to public and private sector clients. AMEL has also diversified into the Power IT Solutions business, where it executes projects as a systems integrator by developing solutions for aggregate technical and commercial (AT&C) loss reduction in India. The ace investor Rakesh Jhunjhunwala is still holding a substantial stake in the company. I am expecting the scrip to cross Rs.20, in the short term, as at present there is no negative news. 

Allied Digital Services Ltd (ADSL) which was asked to be accumulated around Rs.11-12 today touched Rs.15.80 before cooling down at Rs.15.23. The scrip is moving towards Rs.21-22 in the coming days. Many of the Gujarati management (Nitin Shah is the CMD of ADSL) companies are moving  up fast on the optimism that Narendra Modi could become the next Prime Minister of India. 

There is no stopping of IVRCL Ltd and HCC Ltd as both the scrip moved up in tandem. While IVRCL Ltd touched Rs.16.10 intra-day before closing at Rs.15.80, HCC Ltd (recommended at Rs.12.70-12.80 on 4th February, 2014) closed at Rs.19.20, after touching a high of Rs.19.80 intra-day.

Marg Ltd, which was recommended around Rs.7.65 on 3rd April, 2014, to the Paid Groups, today hit another buyer freeze to close at Rs.9.56. With a BOOK VALUE of Rs.180.91 wait for non-stop buyer freezes in the coming days.

Gold, silver imports dip 40% in 2013-14

In March, the imports of the precious metals were down by 17%

New Delhi  April 11, 2014: Gold and silver imports declined 40% to $33.46 billion in 2013-14 mainly due to restrictions imposed by the government on inbound shipments of the precious metal to narrow the current account deficit.

Imports of gold and silver in 2012-13 stood at $55.79 billion.

In March, the imports of the precious metals were down by 17.27% to $27.58 billion from $33.33 billion in the same month previous year.

Lower imports helped to narrow the trade deficit to $138.59 billion in the previous fiscal.

India's current account deficit (CAD), which is the excess of foreign exchange outflows over inflows, touched a historic high of 4.8% of GDP in 2012-13, mainly due to rising imports of petroleum products and gold.

A high CAD puts pressure on the rupee, which in turn makes imports expensive and fuels inflation.

Recently, Finance minister P Chidambaram projected CAD during 2013-14 at about 35 billion, or about 2% of GDP, down from $88.2 billion, or 4.8% of GDP, in 2012-13.

The government had increased customs duty on gold to 10% and banned import of gold coins and medallions, while the RBI linked imports of the metal to exports.

India is the largest importer of gold, which is mainly utilised to meet the demand of the jewellery industry. Imports stood at about 830 tonnes in 2012-13.

The Commerce and Industry Ministry is pitching for easing of the gold import restrictions to boost gems and jewellery exports, which declined by 8.82% in 2013-14 to $39.52 Billion.

Courtesy: The Business Standard

PVP  Ventures Ltd: A Screaming Buy

CMP: Rs.5.78

Introduction: PVP Ventures Limited (formerly SSI Ltd) was acquired in the year 2007 (incorporated in the year 1991) and listed since 1995. It has majority ownership in subsidiary companies and as a result, it is a business entity in its own right and a holding company as well. The businesses of the parent company and subsidiaries are managed by separate teams of professionals.

Business: PVP Ventures Ltd operates in three segments – Urban Infrastructure, Media & Entertainment and Special Situations. 

• In the real estate/urban infrastructure segment, it signed a joint development agreement with Unitech and Arihant Housing to build an integrated 70-acre township called North Town in Chennai. 
• In the sports consumption space, the company acquired the Hyderabad Franchisee of the Indian Badminton League (IBL) and christened it as the Hyderabad Hot Shots. 
• In the special situations vertical, it is continuously evaluating opportunities to build a portfolio of scalable and stable businesses driven by the burgeoning Indian Consumption Story.

Presence: The acquired company possessed a 70-acre land parcel - popularly known as Binny Mills - in the heart of Chennai. The company also owns 135 acres of prime land in Shamshabad, Hyderabad, through its subsidiary and affiliate companies.

Subsidiary Companies: 

• PVP Energy Private Limited (PEL)
• New Cyberabad City Projects Private Limited (NCCPPL)
• PVP Corporate Parks Private Limited (PCPL)
• AGS Hotels and Resorts Private Limited (AGR)
• Maven Infraprojects Private Limited (MIL)
• PVP Business Towers Private Limited (PVPBT)
• PVP Business Ventures Private Limited (PVPBV)
• Cuboid Real Estates Private Limited (CRE)

Shareholding Pattern: The promoters  hold 57.53%, the controlling stake in the company, while the general public holds 42.43% of the shares of the company. Among the general public FIIs hold 1.07%, DIIs hold 0.18% and Corporate Bodies  hold 5.99%.

Financials: In FY13, the total income of the company was Rs.54.50 Cr against Rs.3.34 Cr in FY12. The net profit of the company for FY13 came out to be Rs.36.29 Cr as against only Rs.19 lakhs in FY12. The EPS of the company for FY13 came out to be Rs.1.48, as against Re.0.01 in FY12. 

In Q3FY14, the total income of the company came out to be Rs.30.73 Cr as against Rs.25.4 Cr in Q3FY13. However, due to higher expenditure, higher interest cost and large tax component the net profit of the company came down to Rs.10.76 Cr as against Rs.16.12 Cr. For the FY14E, the company could end up with a total income of Rs.80 Cr and Rs.25 Crore and EPS of Re.1. However, this is a holding company too and hence we cannot value it only looking at the total income and net profit.

(i) Aggregate amount of quoted investments (as of 31st March, 2013):  Rs.5.33 Cr

(ii) Aggregate amount of unquoted investments (as of 31st March, 2013): Rs.549.19 Cr

(iii) Aggregate amount of debentures (as of 31st March, 2013): Rs.248.32 Cr. The NCDs were redeemable at par at any time on or before March 31, 2014.

(iv) PVP Corporate Parks Private Limited (PCPPL) had invested a sum of Rs.16.48 Cr in 0% Optionally Convertible Debentures (OCDs) of certain companies, which are engaged in developing real estate projects. These OCDs are convertible at any time with in 10 years into fully paid equity shares of Rs.10 each at price to be determined by Board of Directors of PCPPL at the time of conversion. The Management has decided to carry these investments as long term and the fact that the investments have potential to generate returns only in the long run.

This is against a market cap of only Rs.142.13 Cr and Book Value of Rs.27.28 Cr. Generally Going-Concern Value of a company differs from the value of a liquidated company's assets, because an ongoing operation has the ability to continue to earn profit, while a liquidated company does not. This value includes the liquidation value of a company's tangible assets as well as the present value of its intangible assets (such as goodwill). The going-concern value is worked into the purchase price of a company, and is the main reason why the purchase price of a company tends to be higher than the current value of the assets of the company.

PVP Ventures is the forefront of diverse spheres and has carved a niche for itself by emerging as the leader in south India in the world of Entertainment. Having forayed into sports, it hopes to replicate its business successes to equally praiseworthy levels.

For PVP, media and entertainment is one of its key and largest vertical. PVP is the Promoter and holds substantial investments in Picturehouse Media Limited, an organisation at the forefront of providing capital for the Indian entertainment industry.

PVP owns this 70-acre land parcel situated in the heart of the Chennai and about 4 kms from Chennai central railway station, as mentioned earlier. This land is under joint development with Unitech Limited and Arihant Housing & Foundation Limited. Going by the response to the first few phases of this project, it is all set to be one of the largest realty projects in South India. Over the next 7 years, this project is expected to yield approximately Rs.1500 crores to PVP Ventures.
Conclusion: Buy the share at the CMP of Rs.5.78, for an immediate short term target of Rs.8.2. Please keep a SL of Rs.4.4 in case of any mishap. The scrip fell from its all time high of around Rs.85, made in 2008-2009 period.