After Market Opening Chart Check

Yesterday, the market traded range bound, with positive bias.  Nifty moved between 7625 and 7650 for entire day and finally setting at 7634 with a net gain of 23 points. Nifty which was trading range bound since the last 3-weeks between 7450 and 7700, roughly, today broke out and is now trading at 7725. The undertone of the market has turned highly bullish and any dip appears to be a buying opportunity. The investors are suggested to give more stress on buying the scrips from small and mid cap space.
Besides, there is a demand from the beleaguered Pharma, Biotech and CRO industries to Increase Overall Healthcare Expenditure to 2.5% of GDP and allow 100% Foreign Direct Investment in Health and Medical Services. Inspite of UPA government's apathy and no real impetus in the last budget plus the margin pressures on account of Pricing Policy and Drug Prices Control Order (DPCO), the Pharmaceutical industry including Biotech has been one of the most consistent performers registering double-digit growth throughout. This makes this sector again look attractive after Narendra Modi government came in power, with sky-high expectations.
Today's call: Buy Rohit Ferro Tech Ltd (BSE Code: 500002) at Rs.11.50-11.55 for a target of Rs.15. The company has acquired 60% equity stake in a coking coal mine in Indonesia owned by M/S PT Bara Prima Mandiri through its Subsidiary M/S SKP Overseas Pte. Ltd, Singapore. The mine located in Central Kalimantan Province of Indonesia has an estimated coking coal reserve of 10 MN Tonnes.
The company is also having 60% economic interest in the thermal coal mine in Indonesia owned by M/S.Pt Palopo Indah Raya through its aforesaid Subsidiary. The mine located in Central Kalimantan Province of Indonesia has an estimated thermal coal reserve of Rs.20 MN Tonnes. 
My recommended Marg Ltd hit the upper circuits at Rs.20. This scrip has been recommended a number of times in this blog and I hope most of the investors have money from it. 
Shiv Vani Oil and Gas Exploration Ltd tanked after a sell call was given in the counter yesterday. The short term investors are suggested to book profits and exit the counter. 
Birla Shloka Edutech Ltd which was strongly recommended in this blog today hit the buyer freeze at Rs.5.59. A company of the size of Birla Shloka Ltd should not trade below Rs.20. The scrip, is therefore expected to hit some more buyer freezes from here. 
Dr.Datsons Labs Ltd (Rs.15.35) should be accumulated further if and only if yesterday's low of Rs.15.25 is honored by the market, on a closing basis. Or else simply hold on to your positions with a SL of Rs.14.70 (Exit). There is as such not much problem in the company except servicing of the debt, but some traders are selling out on the fear of equity dilution, which I feel is over-done now. 
Resurgere Mines and Minerals Ltd which owns a number of mines today hit the Upper Circuits in both the exchanges, viz. BSE and NSE. The NSE authorities are requested to increase the circuit limit for the scrip which is being traded there, so that its price becomes at par with that in the BSE (Rs.3.39). Today the volume in the NSE is only 19,678 shares. So, if you think you will get the same easily in the NSE, then you are terribly wrong. Therefore, buy the scrip in BSE and keep holding for a target of Rs.10. A simple "Funda" is that, a mining company cannot trade below its face value (Rs.10). So, in any case Rs.10 is coming. Buy the scrip in Bulk and Keep Holding--you will definitely take my name after few months.

 IVRCL CDR proposal approved

CDR is a mechanism that permits viable companies additional time to meet debt obligations, subject to certain terms and conditions

Hyderabad, July 1, 2014: IVRCL Ltd, has informed BSE on Tuesday that the Corporate Debt Restructuring Empowered Group (CDR EG), at its meeting held on June 28, 2014, had approved the CDR proposal submitted by the company.

The company's board, at its meeting held on Monday, had passed necessary resolutions for the implementation of the approved CDR scheme and also to obtain the shareholders approval for passing the necessary resolutions.

In January 2014, IVRCL, which incurred a net loss of Rs 853.37 crore in 2013-14, had initiated the process of CDR prescribed under the Reserve bank of India (RBI) guidelines by way of reference to CDR Cell.

CDR is a mechanism that permits viable companies additional time to meet debt obligations, subject to certain terms and conditions.

IVRCL had earlier decided to raise Rs 300 crore either through a rights issue, preferential allotment or institutional placement to fund its projects.

IVRCL scrip closed at Rs 26.50 on BSE today, marginally down 0.19% compared to the previous close of Rs 26.55 crore.

Courtesy: The Business Standard

Dr.Datsons Labs Ltd: Slowly, To Come out of the Blues

CMP: Rs.15.55

The shares of the company fell since a last few days after the board of directors of Dr Datsons Labs approved the issuance of 34.5 lakh shares to bondholder, Autor Investments Ltd on conversion of foreign currency convertible bonds (FCCBs) for a value of $3.5 mn at Rs.55 a share. Following this, the company’s share capital has increased to Rs.53.37 crore from Rs.49.91 crore. 

However, it seems from the movement of the scrip, that for the time being, the downturn has come to an end and the scrip should move up. The company has a board meeting, on 5th July, 2014, which is likely to have a positive rub-off on the company's share price.

Moreover, according to the Business Standard, 1st July, 2014, Dr.Datsons Labs has received, the International Star Award for Quality; which will be conferred upon the Company at the ISAQ Convention. 

The Company has been chosen for:

- Being the third-largest quinine salts manufacturer in the world. This level of operational success demonstrates a clear commitment to ongoing good practices.

- The high quality of its production process, as demonstrated by its ISO 9001:2008, ISO 14001:2004 and ISO 22000 certifications.

- Its social and environmental initiatives, like its support of IDA programs (focused on the elimination of animal abuse).

The risk taking investors are suggested to buy this high-risk-high-gain stock on all declines, for a short term target of Rs.18-19, in the coming days.

IVRCL Ltd: Update

CMP: Rs.26.50

IVRCL Ltd has informed BSE that the Corporate Debt Restructuring Empowered Group (CDR EG), at its meeting held on June 28, 2014, have approved the Corporate Debt Restructuring proposal submitted by the Company.

The Board of Directors of the Company in its meeting held on June 30, 2014 passed necessary resolutions for the implementation of the approved Corporate Debt Restructuring scheme and also to obtain the shareholders approval for passing the necessary resolutions.

This is a superb news for the shareholders of IVRCL Ltd who have been waiting patiently for this news; since  a long time. The share is likely to cross Rs.30 in the coming days. The next targets are: Rs.37-39-41.

After Market Opening Chart Check

Yesterday the Bulls came back strongly and pulled the Nifty to a high of 7623 before closing at 7611 with a spectacular gain of 102 points. It was a gap up opening followed by sustained buying all through  the day.
Nifty seems to have entered into a trading zone between 7450 and 7700 which is evident from its trading patterns since last couple of weeks. Meanwhile, the undertone has become bullish and any dip appears to be a buying opportunity. Today, since the morning, Nifty is clearly is holding, 7600 mark, which could mark the beginning of a pre-budget rally. The investors are suggested to focus on the small and mid cap counter, buy them and keep holding till the budget.
Resistance: 7650 /  7700
Support: 7570 / 7535
Today's call: (i) Buy Dr.Datsons Labs Ltd at Rs.15.50-15.60, for a target of Rs.18-18.50, in the short term. The company is having a board meeting on 5th July, 2014, which is likely to give a positive rub-off on the scrip.
(ii) Buy Marg Ltd at Rs.18.50, T--Rs.24, SL--Rs.16.50. This week, I shall be speaking with the sources, regarding the open offer, at Rs.91.
Birla Shloka Edutech Ltd hit the upper circuits today at Rs.5.34 today and could become only buyer any time from now. The scrip could be moving towards Rs.7-8 in the coming days.
Allied Digital Services Ltd hit the buyer Freeze at Rs.23.10. The scrip was strongly recommended a buy in this blog and report was also placed at SumanSpeaksPlus.
Important:
(i) Those who are holding Gitanjali Gems Ltd (Rs.92.10) should look for a target of Rs.110-112 in the coming days. The government of India, will invariably declare some positives for the battered down Gems and Jewelry Sector.
(ii) IVRCL Ltd (Rs.26.40) could be dark horse after the restructuring gets completed. The company is expected to complete the process by 31st July, 2014.
(iii) If a stock in the same space as Resurgere Mines and Minerals Ltd (Rs.3.17), named SVC Resources Ltd having Face Value of Re.1, can trade at Rs.3, then why can't Resurgere Mines and Minerals Ltd of Face Value of Rs.10, Book Value of Rs.26.49, Market Cap of only Rs.64.04 Cr, having a Soapstone Mine (where mining is going on) and a couple of Bauxite mines trade at least at Rs.20. I think Rs.10 is coming for Resurgere Mines and Minerals Ltd--investors need to buy the share of the company, on every dip, and keep holding, patiently. Also the NSE authorities are requested to increase the circuit limit of the scrip of Resurgere Mines and Minerals Ltd, to make its price at par with the BSE.
(iv) For the short term Shiv Vani Oil and Gas Exploration Ltd (Rs.24) may not show much upward movement, because of the deferment of the Gas price hike. Hence, you can book profits and enter some happening sectors like Infrastructure or Mining...or Shipping....etc. Later you can again enter....however long term investors can keep holding with a SL of Rs.21 (exit)...

 Birla Shloka Edutech Ltd: Updates

Birla Shloka Edutech Ltd, the Yash Birla Group of company is having around Rs.500 crore-plus order book in hand. Moreover, it is slated to get a project from Orissa soon. It already has orders from Maharashtra and Tamil Nadu Governments. The company is looking to reduce its debts on the books. In March, 2014, the company declared that it has received an order from School Education Department, Government of Tamil Nadu for implementation of information and communication technology scheme in 1820 Government High & Higher Secondary Schools in Tamil Nadu State with a total project value of Rs.359 crore. It is already doing a 5-year contract from the Maharashtra government.
The scrip has a book value of Rs.50.36 and its market cap is only Rs.10.07 crore. According to Money Life of February, 10, 2014, it bought a piece of land in Oshiwara (a Suburb of Mumbai near Andheri West) at Rs.16 crore.

Financials:
Net profit of Birla Shloka Edutech rose 27.08% to Rs.3.52 crore in the quarter ended March 2014 as against Rs.2.77 crore during the previous quarter ended March 2013. Sales declined 37.81% to Rs.33.19 crore in the quarter ended March 2014 as against Rs.53.37 crore during the previous quarter ended March 2013.

For the full year, net loss reported to Rs.3.28 crore in the year ended March 2014 as against net profit of Rs.5.05 crore during the previous year ended March 2013. Sales declined 71.54% to Rs.63.63 crore in the year ended March 2014 as against Rs.223.56 crore during the previous year ended March 2013.

Conclusion:
The scrip is currently trading at Rs.4.85 and is looking highly undervalued. The investors can buy the scrip for a target of Rs.7-8 in the next 4-5 months time frame. According to my close sources, the company is going do well in the subsequent quarters. However, it is not a momentum counter.

Note: This information was put on the Paid Blog, on last Sunday, i.e, on 29th June, 2014. The scrip hit the upper circuits yesterday (30th June, 2014) at Rs.5.09. Join the Paid Service or trade through my recommended brokerage house/s to stay ahead of others. Also, allow experts to trade on your behalf and cover all your losses. For details mail me at: suman2005s@rediffmail.com.

WINNING STROKES: THINK DIFFERENT

Jai Balaji Industries Ltd has been moving up since my write-up was put in SumanSpeaksPlus. The company has  a number of mines and the current price, does not reflect the true value of the scrip. Today the scrip hit the buyer freeze at Rs.26.95.

Gitanjali Gems Ltd recommended in this blog, only a couple of days back today touched Rs.93.10, before closing at Rs.92.10. The scrip would be moving towards Rs.110-112, in the coming days, and hence have this scrip in your portfolio. 

IVRCL Ltd recommended last week in this blog hit the buyer freeaze at Rs.26.55. The company will be one of the major beneficiaries of the government of India's largesse. The scrip would be slowly moving towards Rs.31-32, in the coming days.

PVP Ventures Ltd today touched Rs.9.75, intra-day, before closing at Rs.9.29. The stock might be slowly moving towards Rs.10-11, in the coming days. However, this is a very volatile counter and hence investors must be very cautious while entering this scrip.
Birla Shloka Edutech Ltd, which is expected to get an order from Orissa (Odisa), has an order book of around Rs.500 crore-plus and Book Value of Rs.50.36, today hit the upper circuits. The investors were repeatedly asked to buy the scrip, after Aditya Birla Group, supremo, Mr.Kumar Mangalam Birla, came in aid of his cousin, Mr.Yash Birla and Birla Family virtually throwing their weight behind  him. Earlier, Rs.30 crore was advanced to Mr.Yash Birla by cousin and businessman Kumar Mangalam Birla to repay FD investors of Birla Power Solutions. Moreover, Mr.Kumar Mangalam Birla is recently in news for increasing his stake in the B K Birla Group of companies. 

Shiv-Vani Oil and Gas Exploration Ltd today moved to Rs.24 before closing at Rs.23.65, up 2.16%. At present the company is implementing the CDR scheme. 

Government to start consultations afresh on raising gas prices

After putting off implementation of a contentious gas pricing formula, the new government will start consultations afresh with all stakeholders to arrive at an acceptable increase in natural gas rates.

Sunday, 29 June 2014: The Cabinet Committee on Economic Affairs had on June 25 deferred a decision on raising gas prices based on a formula approved by the previous UPA government by three months to hold consultations with all stakeholders keeping public interest in mind, government officials and industry sources said.

"The key word in the Cabinet decision was public interest. Public interest in this case can be defined as ensuring that the increase in gas price is affordable," an official said.

The formula approved by the previous government would have led to prices of gas, which is used mainly for power and fertiliser production, more than doubling to around USD 8.8 per million British thermal unit.

Every dollar increase in gas price will lead to a Rs 1,370 per tonne rise in urea production cost and a 45 paise per unit increase in electricity tariff. There would be a minimum Rs 2.81 per kg increase in CNG price and a Rs 1.89 per standard cubic metre hike in piped cooking gas.

Considering a USD 4.5 dollar increase, power cost would have gone up by over Rs 2 per unit and CNG rates jumping by over Rs 12.6 per kg. Besides piped cooking gas price would have gone up by Rs 8.50.
Sources said it is unlikely that a new expert committee will be formed and the oil ministry will take a proposal for raising gas prices to the Cabinet after holding consultations with user ministries of power and fertiliser as well as finance. Gas producers and user industries will also be consulted.

The impact of the UPA government approved formula on power and CNG rates were among a host of other reasons that led to postponement of gas price hike.

The UPA's pricing formulation had been challenged in the Supreme Court and an FIR is pending in Delhi's Anti Corruption Bureau on the issue.

Also, the Parliamentary Standing Committee on Finance and the Standing Committee on Petroleum had made adverse comments on the formula, the sources said.

If the government decided to insulate the general public from the price rise, then there would have been substantial increase in burden of subsidy, the officials said.

Gas producers want gas prices to be raised as they feel the current USD 4.2 per mmBtu rate is insufficient to make many discoveries economically viable to produce.

They feel an increase in rates will help raise output by bringing hereto economically not viable fields to production and help cut imports. 

Courtesy: DNA India

NHAI concession may help Reliance Infra, others disentangle Rs.4,500-cr debt

[Editor: The article misses an important name in the road-project space, IVRCL Ltd (Rs.25.30); whose finances worsened because of too much focus on the BOT projects. IVRCL Ltd will also be a major beneficiary of such largesse from the government of India, though the according to the sources, it has now decided to incline more toward the EPC projects]

New Delhi | June 27, 2014: The National Highways Authority of India (NHAI) last month’s move to reschedule the premium that developers of road projects have to pay to the government for securing the right to build and operate them will facilitate faster completion of the beleaguered projects and help companies service the debt associated with them.

Companies like IRB Infrastructure, Sadbhav Engineering and Reliance Infrastructure (R-Infra) that will benefit from this move have a total debt obligation of Rs 4,500 crore associated with the road projects they are developing and which are eligible for rescheduled premium payment.

Premium is the amount developers have to pay NHAI for bagging road projects on a build-operate-transfer basis. Developers have to bid the premium amount that they pay NHAI upfront, based on future traffic estimates. The term for payment of the premium is typically 20-25 years, with a 5% increase annually.

In March, a committee headed by then chairman of the Prime Minister’s Economic Advisory Council C Rangarajan had suggested a mechanism whereby the rescheduling of payment of such premium will be allowed for only those projects where the toll collected is insufficient to meet project expenses such as servicing of debt, operations and maintenance, along with the premium payment.

For instance, say a road developer has to pay a premium of Rs 100 to NHAI for a road project, but is able to pay only Rs 60 now, after deducting project expenses from toll collection. In such a situation, the government will allow the developer to capitalise the remaining premium amount over the concession period. The developer will have to, at a later date, pay this shortfall in premium with a 10.75% interest.

The government had approved this scheme before the model code of conduct came into force ahead of the Lok Sabha election. The NHAI allowed nine road projects to reschedule premiums in the last week of May, leading to a total premium deferment of Rs 5,960 crore. For FY15, the amount of deferred premium stands at Rs 652 crore.

The developers whose projects have got the benefit are calling it as a much needed breather in a stressed environment.

“The moment a project becomes operational, I, as a developer, do not have the kind of cash flows needed to service my repayments in the initial years,” said Lalit Jalan, chief executive of Reliance Infrastructure. “This mechanism is to ensure that the banks don’t get stressed.” R-Infra’s Rs 925-crore Hosur-Krishnagiri road project has been approved on premium restructuring.

IRB’s Rs 2,226-crore Ahmedabad-Vadodara project and Rs 839-crore Tumkur-Chitradurga projects are among the beneficiaries of the scheme. According to the final approval given by NHAI for IRB’s projects, Rs 236 crore will be the revised premium that the developer will have to pay NHAI in FY15 for the Ahmedabad-Vadodara project and Rs 81 crore for the Tumkur-Chitradurga project, said Virendra Mhaiskar, the chairman of IRB. “It certainly comes as a relief for us and will be helpful in smooth operations of the projects,” he said.

Jonas Bhutta, Bank of America Merill Lynch (BoAML) research analyst, in a report in May said, “Premium rescheduling would lead to cash profits versus losses earlier on these IRB projects, and 100bp (basis points) arbitrage between interest cost on short-term debt (12%) and discount rate at which premium will be rescheduled (11%)”. The foreign brokerage has raised IRB’s FY15-16 earnings by 1%-6% on lower interest expenses.

Sadbhav Engineering had received an approval to defer premium for its Rs 1,213-crore Rohtak-Panipat and the Rs 480-crore Hyderabad-Yadgiri road projects. The company expects 100% deferment of premium in FY15 for both projects, which will mean it will not have to pay any premium in FY15, said a senior senior executive from Sadbhav Engineering. According to the original agreement, the company had to pay a total premium of Rs 60.1 crore for the two projects in FY15.

According to a Kotak Institutional Equities report in May, premium rescheduling will improve Sadbhav Engineering’s near-term cash flows and the potential valuation of the projects it is executing.

“The company seems well-placed to meet the increment equity requirement of Rs 380-400 crore for its underconstruction and development projects,” said Aditya Mongia, infrastructure sector analyst at Kotak Institutional Equities.

Courtesy: The Indian Express

Budget 2014: Government to create investment vehicle to boost infrastructure sector

[Editor: This is another sector which is looking good before the budget, and it is expected that the government of India, would come up with some solid measures, to revamp this sector; which has been reeling under several problems. Therefore, one of the best options, for investors at this stage, is to buy a momentum counter (there are so many of them) in this space and keep holding till the budget day. One scrip which I again recommend, from construction space is Marg Ltd (Rs.18.40) which has a book value of Rs.111.71, the Open Offer price of Rs.91 and Market Cap of only Rs.70.14 Crore. Do you think a company of the size of Marg Ltd can have a market cap of only Rs.70.14 crore when HCC Ltd has a market cap of Rs.2,873.93 Cr, Punj Lloyd Ltd has a market cap of Rs.1,693.69 Cr, while IRB Infrastructure Ltd has a market cap of Rs.7,458.25 Cr?]

NEW DELHI, Jun 25, 2014:  The government is looking to create a new investment vehicle known as the infrastructure business trust to help cash-starved infrastructure developers raise long-term capital at competitive rates.

The finance ministry is considering a range of tax incentives for such trusts in the budget that's to be announced on July 10, in line with its promise to create a framework of fast-track, investmentfriendly and predictable public private partnerships (PPPs) to build large-scale projects that are of vital importance for India to compete in global markets.

 Though assets delivered through the PPP model and available for financing through securitisation have risen, Indian infrastructure firms are hard pressed with the development of existing projects delayed and the attractiveness of new projects diminishing for private sector funds and strategic operators.

"In order to provide a robust funding mechanism to the cash-starved sector, the government and market regulator Sebi (Securities & Exchange Board of India) will facilitate the securitisation of projects assets through infrastructure business trusts," said a person familiar with the development.

To raise long-term capital for the much-needed sector, the government will incentivise the creation of such trusts, so that investors will have a lower tax burden apart from avoiding multiple taxation at different levels. Infrastructure projects are now funded by bank loans, resulting in asset-liability mismatches in the banking sector.

The government has discussed the plans with senior officials of Sebi, Central Board of Direct Taxes and department of economic affairs to finalise the incentives. An infrastructure business trust will be set up as a trust and registered with the market regulator.

The regulator has proposed two categories of trusts. Category I trusts can raise funds through private placements from institutional investors only. These trusts can invest in multiple projects (at least two) that include those under construction as well as commercially-operational ones. The category II trust can raise funds from both local and foreign investors.

However, it can invest only in commercially-operational projects. It can invest in a minimum of four such projects. The proposed provisions will provide for the deferral of longterm capital gains tax on the exchange of shares of special purpose vehicles that own the infrastructure projects with the unit of the trust in the case of the trust's sponsor. However, capital gains arising from the disposal of the units by the sponsor would be subject to tax at normal rates.

The units of the trust (referred to as InvITs by Sebi) may be treated at par with equity shares, so as to attract the current benefit available under Section 10 (38) of the Income-tax Act.

This provides a preferential tax rate with long-term capital gains being exempt from tax and short-term capital gains being levied at 15%. This implies that unitholders will pay securities transaction tax at the time of transfer of units to another unit holder.

The trust will also be exempt from taxation of income earned in line with existing exemption for venture capital funds available under Section 10(23FB).

In the case of resident investors in InvITs, withholding tax would apply. In the case of non-residents, withholding tax on interest income from both investors as well as lenders of money to the trust may continue to be provided at the current level of 5% on the lines of concessional rates applicable to external commercial borrowings.

Courtesy: The Economic Times

Govt hints at cut in gold import duty; May exports up 12.4%

[Editor: The commerce secretary Rajeev Kher says: “There is a clear perception that there could be something that could have to be done. It will happen in the Budget if it has to happen". So, it is only time that the government will rationalize the duties of gold, to lift this beaten down sector.  Therefore, the best option for the investors at the present moment is to buy a share in this space, which looks good and keep holding, till the date of the budget; for sure shot returns] 

Mr. Rajeev Kher, Commerce Secretary, GOI
Apr 04, 2014, FICCI, New Delhi

June 11, 2014: In the clearest indication ever that the plans were afoot to cut taxes on gold, the government on Wednesday said that there was a need to ease norms for bullion imports to boost supplies and jewellery exports.

“There is a need of rationalisation in (gold import) duty and (gold import) procedure....We have already made it clear that there is a need to look at the current gold import regime,” commerce secretary Rajeev Kher told reporters in New Delhi.

India had raised the import duty on gold from 4% to 10% in order to control the current account deficit (CAD) — a broad measure of dollar inflows and outflows. The CAD had hit a record high of 4.7% of GDP in 2012-13 and the rupee had plunged to a record low of 68.85 against a dollar.

The gap has tapered down sharply over the last three quarters as the government and the Reserve Bank of India launched a string of steps including curbs on gold imports and measures to attract foreign capital.

India’s CAD has dropped sharply to 1.7% of GDP or $32.4 billion in 2013-14, primarily aided by plunging gold imports.

“If you feel that the initial concerns of CAD are fully addressed, as we hope to in the next several months, then there will be a reason to restore or at least to some extent the (earlier) position (on gold imports),” he said. “There is a clear perception that there could be something that could have to be done. It will happen in the Budget if it has to happen,” Kher added.

Gems and jewellery exporters, which approximately accounts for about 15% of India’s total outbound shipments, has been pitching for lifting gold import curbs. Gold imports in May dipped by 72% to $2.19 billion, as against $7.7 billion in May 2013.

India’s exports rose 12.4% in May to $28 billion, the highest in six months on high global demand. However, trade deficit — the gap between export earnings and import payments — galloped to a 10-month high of $11.23 billion during the month.

“It is definitely an encouraging sign. This is the first time in the last six months that we have recorded a double digit growth. If this trend sustains then I am sure we are reviving...It seems that they (export products) are now acquiring there natural levels,” Kher said.

Imports rose to $39.23 billion in May against $35.7 billion in the previous month.

Courtesy: The Hindustan Times

MARG Karaikal Port

[Editor: IL&FS, an infrastructure development company, is setting up a thermal power project near Karaikal Port. The company has agreed to use the port for bringing coal for the power project. The port, which belongs to Marg Ltd, could handle 5 million tonnes of coal in the coming years to feed the first two 600-megawatt (MW) units of the IL&FS subsidiary. This could mean revenues of about Rs.200 crore for Karaikal Port]

MARG Karaikal Port

Karaikal Port Private Ltd (KPPL) is a subsidiary of MARG Ltd, a leading infrastructure and real estate developer along the Chennai IT corridor.
• MARG Karaikal Port is envisaged to have a total of 9 berths capable of handling 47 MMTPA by 2018.
• The port is envisioned to be developed in 3 phases with the final phase getting operational in 2017. Phase - I of development, which was completed in April 2009, comprises two Panamax size general cargo berths.
• The Port hosts various other infrastructure facilities such as covered warehousing, open storage and Mobile Harbour Cranes.
• The Port has excellent evacuation facilities with 3 railway sidings and National Highways within a Kilometer from the gate. An area of around 600 acres is covered by the Port boundaries.

Financial / Funding data

• Series A Funding: Karaikal Port got Rs.150 cr equity from IDFC fund in 2010
• Series B Funding: Ascent Capital invested Rs.200 cr in Karaikal port in 2011.
• Series C Funding: Standard Chartered arm invested Rs.130 cr in Karaikal Port in 2012.
• Series D Funding: PE fund Jacob Ballas invests Rs. 200 cr in MARG Karaikal Port in 2012.
Total Funding: Rs.680 Cr.

Employees: 51-200
Industry: Infrastructure - Roads, Ports, SEZ
Description: India's Largest Private Port to handle large vessels and diverse cargo mix.

Milestones

• GRK Reddy awarded as "Business leader & Visionary of the year" at the 5th South East Cargo and Logistics Awards 2013, Chennai.
• MARG Karaikal Port adjudged as the ‘Best Project’ under the Port Development category at the prestigious ‘D&B – AXIS BANK INFRA AWARDS 2012’, Mumbai.
• MARG Karaikal Port Chosen as the ‘Innovative Port of the Year’ at South East CEO Conclave & Awards, 2012.
• MARG Karaikal Port recognized with 'EXIM Achievement Award' for its operational efficiency in EXIM operations by Tamil Chamber of Commerce on 7th February 2012.
• "Special Jury Award" for GRK Reddy at the 'Gateway Awards of Excellence – Port & Shipping 2012' on 19th January 2012 at New Delhi.
• MARG Karaikal Port bags the “Seaport project of the Year” at the ‘Construction Week Awards 2011’ at Mumbai.
• MARG Karaikal Port awarded as 'Emerging Port of the Year' at South East Cargo & Logistic Awards in July 2011 at Chennai.
• MARG Karaikal Port received the prestigious award for "Outstanding Achievement – Port Development & Port Management" conferred by SHIPPING, MARINE & PORTS World Expo 2010 on March 4, 2010, in Mumbai.
• GRK. Reddy has been awarded the 'South East CEO Conclave Award 2010' for Corporate Social Responsibility.

Courtesy: Coolavenues.com

Buy Gitanjali Gems; target of Rs 145: Way2Wealth

CMP: Rs.90.85

Way2Wealth is bullish on Gitanjali Gems and has recommended buy rating on the stock with a target of Rs.145 in its June 10, 2014 research report. Moreover, in May, 2014, Gitanjali Gems Ltd invested USD 15.5 million in overseas operations. 

Also, MV SCIF Mauritius, part of US-based asset management company Van Eck Associates Corporation, on 20th June, 2014 picked up 4.97 lakh shares of Gitanjali Gems Ltd, through open market route. Van Eck Global offers investment choices in a broad range of asset classes, including commodities and natural resource equities, emerging market equities and debt. 

Besides, though monsoon season is considered lean period for gold demand due to lack of festivals and weddings, Gitanjali Gems Ltd, Rajesh Exports Ltd and Kalyan Jewellers Ltd are promising everything from discounts to an opportunity to dine with Bollywood celebrities, to ramp up sales.

"Gitanjali Gems Ltd, will announce a rain and shine plan next month, offering discounts on ornaments and jewelry making charges. Sales are flattish at the moment because stocks are less and people are waiting for new policies to be unveiled by the new government. We expect demand to pick up because of these offers and the restrictions being eased as well", the Chairman Mehul Choksi said in an interview with Swansy Afonso of DNA India.

"With the kind of promotions and expectation of a change in import tax, we should see some normalcy in demand," C P Krishnan, a director at Geojit Comtrade Ltd, said. 

According to a report published in online portal, Eco-Business, the world’s fastest growing diamond and jewellery company is India's Gitanjali Gems Ltd. They have made employment of disabled a central part of their talent development and human resource strategies.

This initiative started because of a shortage of labour in Hyderabad that made it necessary for the company to hire local disabled people. Result: lower staff turnover, greater employee loyalty, an increase in productivity and more.

In short, what started out as an HR crisis became a competitive advantage. The disabled turned out to be undiscovered resources, and hiring disabled youth is no longer “just a CSR initiative” but an integral part of Gitanjali Gem’s talent management strategy. 

Govt may cut taxes on gold shipments, lift import curbs

[Editor: Therefore buy the stocks in the Jewelry Space and Keep holding till the BBdget day. I am sure you would get guaranteed returns. If you have not done today, then try on Monday. In this trend-less market, the best sectors seem to be Gems and Jewelry, Shipping, Oil and Gas and Construction]

New Delhi, June 22, 2014: The government is firming up plans to cut taxes on gold and ease bullion import rules, in a move that could signal a staggered roll-back of measures announced last year to contain a surge of dollar outflows.

Finance minister Arun Jaitley will likely announce the measures in the NDA government’s first budget in July, sources indicated, adding, the rise in global crude oil prices following the unrest in Iraq is unlikely to stall the move to cut taxes on gold shipments.

“There have been discussions on this (Iraq) but it is being overplayed and the current account deficit (CAD) will be very much in control,” a senior finance ministry official, who did not wish to be identified, said.

The government is also set to easing the 80:20 rule which essentially means that 20% of the imported gold must be exported.

“The government is looking to ease the curbs as it has created artificial supply constraints for consumers,” the official added.

The unrest in Iraq, if it escalates, can potentially push up crude oil prices resulting in higher diesel and fuel prices. Besides, the high oil import bill will result in dollar outflows and hurt the rupee’s value and the CAD.

India had raised the import duty on gold from 4% to 10% rein in CAD — a broad measure of dollar inflows and outflows — that hit a record high of 4.7% of GDP in 2012-13 and the rupee had plunged to a record low of 68.85 against the US dollar.

CAD has dropped sharply to 1.7% of GDP or $32.4 billion in 2013-14, primarily aided by plunging gold imports. Gems and jewellery export account for about 15% of India’s total outbound shipments and exporters have been pitching for lifting import curbs on the yellow metal.

“Though a lot is being talked about the Iraq crisis but it may not have damaging impact and the CAD problem is not likely to come up the way we saw it did in the last financial year,” said Soumya Kanti Ghosh, chief economic adviser, State Bank of India (SBI).

An internal SBI research report said that even if the prices move up to $115 (the worst case scenario), CAD would still be below 3% of GDP in the current financial year (2014-15). 

Courtesy: The Hindustan Times

Bommarillu Bhaskar Making Comeback With Bangalore Days Remake?

[Editor: PVP Group (of Prasad Vara Potluri)  ventured into the Indian Media & Entertainment Industry via “Picturehouse Media Ltd” (PHML). Picturehouse Media Ltd is India's largest organized media capital house, supporting the Financing needs of the Indian Entertainment Industry. PHML recent foray into main stream film production under the banner of PVP Cinema is one of the largest production houses in the country. PVP Cinema has recently acquired the remake rights of a Malayalam Blockbuster 'Bangalore Days' and it will be made simultaneously in Telugu and Telugu.]

27 June 2014: Director Bommarillu Bhaskar had gone missing from the news after his last directorial venture Ongole Githa bombed at the Box Office. When everyone was wondering over his whereabouts, the director is back in news. The buzz in the film nagar is that he is all set to make his comeback with fifth venture, which is said to be a Telugu remake of recently-released hit Malayalam movie Bangalore Days. It is reported that the leading production house PVP Cinema has plans to remake Bangalore Days in Telugu. The company have already bought the rights of the Malayalam movie, which has been directed by Anjali Menon and produced by Anwar Rasheed and Sophia Paul. The bosses of the production have reportedly selected Bommarillu Bhaskar for this project, which is still in the pre-production stages.

Reports suggest that the bosses of PVP Cinema are currently in process of finalising the cast and crew members of the Telugu remake of Bangalore Days. They will make an official announcement about the movie once they finish the pre-production works. Rumour mongers in T-Town are now busy speculating about lead cast and crew members. Written by Anjali Menon, the story of Bangalore Days revolves around three cousins, who share a close bond since their childhood. How they fulfill their Bangalore dreams will form the crux of the movie. Dulquer Salmaan, Fahadh Faasil, Nazriya Nazim, Nivin Pauly, Parvathy, Isha Talwar and Nithya Menen have played the lead roles in the film.

Courtesy: One India Entertainment

Sterling Bio Tech Ltd: Steady  Upmove seen on the Chart
CMP: Rs.17.06; BSE Code: 512299

After a long time this market  is favouring the BULLS or in other words there is a trend in the market. However, if there is too much selling (which is not expected though but still as a hypothesis) then money can also be made by reverse trade (selling instead of buying in the F&O Market). 

Therefore, those who want to cover their losses and come out with profits, can join my group. You need to do few correct trades, to emerge victorious at the end of the day. The time is running out and this is the best time to look for a target of Rs.50 lakhs on an investment of Rs.5 lakhs, in the next  5 years. Even if half of that target is reached, then also it would be superb. 

Why I am telling: Look at the shares of Simplex Projects Ltd (BSE Code: 532877). The price of the shares were Rs.7.21 in 10th October, 2013. Now, in less than one year, the shares have give more than 10 times returns. So, if anyone had invested Rs.5 lakhs in Simplex Projects Ltd in October, 2013, then he / she would have made Rs.50 lakhs by now.  Did you get my point? 

Therefore, correct choice of scrips is the key to making money in the shortest possible time. Time is very important factor in such market, because if  you lose  this period by applying AMATEUR TECHNIQUES of Trial and Error, then you might miss the Golden Opportunity. 

Over-diversification of your portfolio will not give too much returns, over a period. Like a good doctor, you need to have PIN-POINT diagnosis, while choosing scrips. This market is for the EXPERTS and HIGHLY PROFESSIONAL PERSONS ONLY and not for new-comers / non-professionals. 

You need to beat those who have years of experience in the market, to churn out money. Novices might be successful in one or two trades, but in the subsequent trades, those benefits might be gone. So, either join the Paid Service or allow me or firm to trade on your behalf, to generate quick returns from this Bullish Market. Therefore, if you are new entrant in the Indian Stock Market, then kindly don't lose your valuable TIME, unnecessarily experimenting, just to satisfy your EGO. For more details, kindly send me a mail at: suman2005s@rediffmail.com or sumanm2007s@gmail.com. 

IVRCL Ltd: Buy in Bulk

CMP: Rs.25.15

Two Prime Triggers:

(i) Rights Issue probably at a price which could be higher than the current market price of Rs.25.15. The Book Value of the shares of the company is Rs.47.33, which is almost double the current market price. 

(ii) The implementation of the CDR Package, apart from the government help. Once the company starts to get financial assistance, in terms of working capital needs, its order book of around Rs.20, 000 Cr, would get slowly implemented. There are other positives, also which I cannot disclose at the current moment. 

Modi government moves to ease business rules, weed out archaic laws

TNN | Jun 25, 2014: NEW DELHI: With a view to revive investor sentiment, Union law ministry has written to the Law Commission asking it to suggest ways to ensure that business disputes are treated as such and not as criminal ones, as well as to examine whether companies can be given clearances on the basis of "self-certification". 

In a letter to the Law Commission a day after Prime Minister Narendra Modi held a review of his ministry, law minister Ravishankar Prasad has highlighted what he termed the trend of commercial disputes being camouflaged as criminal disputes and being taken to magistrates with the risk of penal consequences coming in play. "While crimes ought to be prosecuted, we cannot allow a situation where business rivalries are sought to be settled by passing them off as crimes," said a source in the law ministry to explain the context of Prasad's letter to Justice (retd) A P Shah. 

The concern follows the arrest warrant a Ghaziabad court issued against the global chief of Samsung on the basis of a complaint filed by one of the vendors of the Korean giant.

Sources also said that Prasad asked the Law Commission to explore that the desirability of giving companies certain clearances on the basis of "self-certification" is not in the breach of the relevant norms. "This is to smoothen the process as the task of requiring all the relevant clearances can be cumbersome and time-consuming and keep the projects from getting off the ground," said a source, emphasizing that the companies will be liable for punishment if they are found to have misrepresented facts to secure clearances. 

Prasad has also asked Shah to prepare a list of archaic laws and suggest ways to weed them out. "As PM has emphasized, we are saddled with laws which we don't need. We have to get rid of them," said an official in the law ministry. 

The law minister also asked Justice Shah for a framework to encourage arbitration as dispute-resolution mechanism, and to make suggestions on how India can become an international hub of arbitration.

Courtesy: The Times of India

Modi govt brings most confident nation status to India: Report

June 25, 2014: Formation of "business-friendly" government led by Narendra Modi has made India the most optimistic country economically, looking ahead six months, says a report.

As many as 60 per cent Indians surveyed have predicted that domestic economy would be stronger in the next six months, placing it at the top of the 25 nation-list compiled by global research firm Ipsos.

Besides, India's economic confidence shot up by 6 points to 66 per cent in May compared to the previous month, making it the fourth most economically confident country after Saudi Arabia, Germany and China.

Saudi Arabia led on the parameter with 87 per cent of its people surveyed being optimistic about their economy.

Canada was behind India at the fifth place with 65 per cent economically confident citizens.

"India's economic confidence has got a major boost primarily due to a landslide victory of the business-friendly government led by Narendra Modi, who has vowed to boost growth, control inflation and restore investor confidence," the Ipsos report said.

The survey conducted among 19,242 people in 25 countries, also found that Indians, for the first time, emerged at the top for being the most optimistic about the economic growth for the coming six months.

India is followed by Brazil at second rank, Saudi Arabia (3rd), Indonesia (4th) and China (5th), in this category.

"All the data points in the Ipsos report indicate India's economic confidence has shot up substantially, which is also corroborated by the fact that India's current account deficit has significantly eased, the currency has stabilised, inflation has substantially pulled back, stock market has had a dream run so far and corporate earnings are improving," Ipsos India CEO Mick Gordon said.

"However, recent high food inflation , conflict in oil-producing Iraq and the fear of a below normal monsoon is big challenge for the new government," Gordon added.

Courtesy: Business Today

WINNING STROKES: THINK DIFFERENT

[Editor: Unless this animal named T-Group is abolished the Indian Stock Markets would not be same as it used to be, a decade back. Keeping the shares languishing in the T-group for weeks, without any apparent reason, has not oly generated a new form of SCAM, but have also destroyed the whole market breadth. This also probably done, so that money flows only into large (select mid and small cap) counters and the indices rises, giving a feel good factor--but the whole approach is of deception and is wrong. Moreover, it is to be noted that Speculation is a part of any Share Market, therefore, though there is a need to regulate it, but why should the investors/ trader be asked to compulsorily to take delivery of shares. Zabaardasti!! This is then called Rape of the Investors, by the Regulators. Such "Rapes" should be stopped immediately, to revive the small and mid cap space. Though the Indian Stock Indices are near all time high, due to our incompetent regulators, many of the stocks are much below then October, 2008 highs--really shameful!!] 

Resurgere Mines and Minerals Ltd (Rs.2.68)  hit another buyer freeze in the opening trade. The scrip has been continuously hitting the Upper Circuits, since the time it was recommended. 

Birla Shloka Edutech Ltd today touched a high of Rs.5.25 before falling at the Rs.4.99. This Yash Birla Group company is expected to give good returns going forward. The company has a piece of land in Oshiwara (near Andheri West, Mumbai), at Rs.16 Crore, whose current valuation is much higher. The market cap of the company is only Rs.10.45 crore. Birla Shloka Edutech Limited provides information technology (IT) services and sells IT products to private and government schools. The company offers XL@school, a curriculum based interactive multimedia software product for mathematics and science subjects as per the syllabus prescribed by different educational boards that is designed to impart academic knowledge through electronic media. It also provides information and communication technology (ICT) solutions in schools along with infrastructure assistance on build own operate transfer model to schools over a contracted tenure. In addition the company resells hardware products, such as desktop/laptop computers, LCD projectors/TVs, interactive white boards, and UPS/inverters/generators; and software products, including online examination software, geo engineering software, data migration software, accounting and inventory software, asset management software, HR management software, and share transfer software with signature card. It operates in India and United Arab Emirates. The company was formerly known as Shloka Infotech Limited and changed its name to Birla Shloka Edutech Limited in December 2008. Birla Shloka Edutech Limited was incorporated in 1992 and is headquartered in Mumbai, India. The Book Value of the shares of the company is Rs.50.36 and the company has now expanded to whole of India. There are some source based news that the company has recently opened some of their centres in Jamshedpur, Jharkhand. 

IVRCL Ltd today closed flat at Rs.24.30. The rights issue and CDR will give the necessary cushion to the investors. With the NDA giving stress on infrastructure, it is only time that the scrip would move up. 
Jai Balaji Industries Ltd which was recommended only a couple of days back in this blog and in SumanSpeaksPlus, hit the Upper Circuits today. Long term investors should  understand the hidden value in the shares of the company. The scrip will be moving towards Rs.31-32 in the short term. 

PVP Ventures Ltd (Rs.8.90) should be accumulated for a target of Rs.11-12 in the short term. A lot of positive developments are happening in the company. Moreover, in a Cricket-Crazy India, Football viewership is on the rise. According to the Economic Times, June 23, 2014: In 2011, there were 83 million TV viewers for football in India, compared with 122 million for cricket. Between 2005 and 2009, the audience for football in India rose 60%, according to TAM Media Research, with a big chunk of them watching the European league. The first edition of the football league, which is a three-way joint venture among IMG, Reliance Industries and Star India, will be played in September this year among eight city teams. These teams — Bangalore, Delhi, Goa, Guwahati, Kochi, Kolkata, Mumbai and Pune — are owned by celebs and top businessmen who includes Sachin Tendulkar, Sourav Ganguly, Salman Khan, Ranbir Kapoor, John Abraham, PVP Ventures, Harshavardhan Neotia, Sanjeev Goenka, Spanish football club Atletico Madrid, Venugopal Dhoot and others. The co-operation agreement between the ISL and EPL will raise the bar for football in India and also bring in television and on-ground viewership. It is to be  mentioned here that PVP Ventures Limited, a Hyderabad-based multi-business house with interests in real estate, media and entertainment, in partnership with retired cricketer Sachin Tendulkar, earlier 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, there are rumours going around that Potluri Vara Prasad (PVP) might be given a Rajya Sabha ticket. In all probability going forward Tthe scrip is going to give decent returns to the investors. 
As expected Shiv-Vani Oil and Gas Exploration Ltd (Rs.22.45) hit the upper circuits in the morning trade. The company is implementing the CDR package and have also got waiver of interest in its debt. The shares of the company should bounce back from here as the government of India gradually liberalizes the Oil and Gas sector. Moreover, any hike in the natural gas price would be a big booster for the share price. 
Allied Digital Services Ltd (Rs.22) today closed flat. The scrip is finding difficulty to cross Rs.22.50-23 ranges. However, the future of the company looks good, after FY14 results were declared. It is to be noted that Allied Digital Services Ltd fell from around Rs.400 plus in 2008-09 to the current price of Rs.22. However, the book value of the shares of the company is still Rs.149.40 and the EPS is Rs.2.77. A decent P/E rating of around 15 can take the scrip to around Rs.39-40, in the next few months. The scrip is languishing in the T-group, for weeks even though there is hardly any volume in the counter. Today the total shares traded were only 8287 and so is the 2-week average quantity. Unfortunately, the regulators have destroyed the whole of Indian Markets.