Soyabean futures up on global cues

Photo: Geewinexim

NEW DELHI, 14 Oct, 2015: Soyabean prices spurted by Rs 74 to Rs 3,947 per quintal in future trading today as speculators enlarged positions, supported by rising demand at the physical markets. 

At the National Commodity and Derivatives Exchange, soyabean for delivery in October flared up by Rs 74, or 1.91 per cent, to Rs 3,947 per quintal, in an open interest of 5,040 lots. 

Also, soyabean for most-active November delivery spurted Rs 73, or 1.88 per cent, to Rs 3,950 per quintal and an open interest stood of 81,650 lots. 

Marketmen attributed rise in soyabean futures to strong demand at the domestic spot market. 

DO YOU KNOW?

The face value of the shares of the Gems and Jewelry company, Rajesh Exports Ltd is Re.1 (one) and the share is being traded at a whooping price of Rs.636.85, which means for Rs.10, FV, the share should trade at Rs.6368.5. 

In comparison Gitanjali Gems Ltd has a face value of Rs.10 and is now trading at Rs.39. Moreover, the P/E of Gitanjali Gems Ltd (Rs.39) is only 14.26 as compared to 60.38 of Rajesh Exports Ltd. The industry P/E is meanwhile is placed at 35.84. 

This means that, even if Gitanjali Gems Ltd gets a decent P/E of 20, then the share price should cross Rs.50, in the short term. Therefore, investing in Gitanjali Gems Ltd even at the current price of Rs.39, looks more appropriate and risk free than investing in the shares of Rajesh Exports Ltd. 

However, on the flip side, Rajesh Exports Limited (REL) is a ZERO DEBT COMPANY company which over the years, has grown to be the largest gold jewellery manufacturing company in the world. The company has set up the world’s largest gold jewellery manufacturing facility at White Field, Bangalore, with a capacity to process 250 tons of gold into world’s finest Jewellery. 

Totally REL has a capacity to manufacture 350 tons of gold products. The facility is spread over 12 acres of land with a built up area of 500000 sqft. REL is also the lowest cost gold Jewellery manufacturing company in the world. 

The company has recently acquired 100% stake in Valcambi, the world’s largest gold refinery with headquarters at Switzerland. With this acquisition the company has emerged as the single largest constituent of the global gold business. REL is the only company in the world with a presence across the complete value chain of gold from Refining, Manufacturing, Wholesale, Export and Retail of gold products. 

Gold ornaments a craze this festive season

If the trend in the city is any thing to by, the sale of light gold ornaments will take over that of bullion this festive season. 

Photo: www.lalithathangamaaligai.com

Oct 14, 2015: Steep fluctuations in gold prices over the past six months--gold has seen a high of Rs 28,000 and a low of Rs 25,400 per 10 gm have made consumers extremely jittery about investment.

Light jewellery for ornamental purpose is more in demand than long term investment in gold.

Ravindra Nath Rastogi, president of Lucknow Saraffa Association, said, "People are only buying required amounts of gold for weddings and festivals but are hesitant in making big investments in the yellow metal mainly because of the uncertainty over gold prices." He explained that people were in the `wait and watch' mode hoping for prices to fall further for hoarding bullion. India imports gold mainly from Israel, South Africa and Switzerland. Gold traders say China has announced to export gold to other countries soon. Hence, India may soon be over supplied with gold, resulting in steep fall in prices."This could happen anytime. Be sides, the rupee is gradually attaining stronger value in the global market hence most investors are waiting for prices to fall further," said Rastogi.

The buying patterns, however, show more inclination towards lighter ornaments like earrings, rings, bangles and chains apart from the must-buy traditional jewellery for wedding. Silver, too, has very few takers this season because of the constant decline in prices over the past few years. The rate of silver is Rs 35,800 kg this year, a steep fall from last year's price of Rs 42,000-45,000kg. Four years ago, silver prices had shot up to Rs 70,000kg, after which it has been constantly falling now. This has led to a major loss for silver buyers.

Courtesy: The Times of India

Q2 gold imports at 3-quarter high

October 10, 2015: In the quarter ended September this year, gold imports jumped to a three-quarter high of an estimated 262.2 tonnes, owing to lower prices and higher import of dore gold, or unrefined gold, by refineries. Observers say the trend suggests "import is returning to the normal prevailing three years ago".

In the quarter ended December last year, imports stood at 292 tonnes, while the previous high was in the June 2013 quarter (333.6 tonnes).

In the September quarter this year, demand was high, as prices started falling since July-end, before being quoted at $1,072 an ounce at a global level and Rs 25,000/10g in Mumbai. Currently, gold is quoted at a discount of $6 an ounce to the cost of import.

An analyst tracking gold imports said, "Several gold refineries are jacking up capacities to benefit from the two per cent lower import duty on dore gold." Dore attracts eight per cent import duty and value addition is done in India, which saves on import costs. Dore imports in the past two months are estimated at about 60 tonnes on a gross purity basis; on a net purity basis, these are estimated at about 40 tonnes.

Q2 gold imports at 3-quarter high For the first nine months of this year, overall dore imports are estimated at about 220 tonnes on a gross purity basis.

In September, the demand was lower because high imports in August (113.6 tonnes) had left jewellers with inventories. Going forward, "if gold prices fall a bit, the demand will pick up", said the analyst quoted earlier.

"Indian demand for gold is positively correlated to higher GDP (gross domestic product), spending power and the monsoon," said a Natixis Commodity Research report released on Friday. It is expected imports will be high in the coming months because growth in India's GDP has been higher compared to its peers and the festive season in India is approaching.

During 2012-2014, average annual gold imports stood at 858 tonnes, according World Gold Council (WCG) data. So far this year, imports stand at 661 tonnes; the WGC estimates for the entire year, imports will touch 900 tonnes.

Courtesy: Business Standard

Gitanjali Gems Ltd: Buy

CMP: Rs.36.30

Gitanjali Gems Ltd has shown stellar performance in Q1FY16. The company's consolidated Q1 net for the quarter ended June 2015 nearly tripled to Rs.28.05 Cr when compared with Rs.10.15 crore in the corresponding quarter a year ago. Total income also surged by nearly 42% to Rs.2,952 Cr in Q1FY16 from Rs.2,082 Cr in Q1FY15.

Moreover, there was a recent report PwC which mentioned that, Indo-US tie-up in the gems and jewellery sector can be a win-win situation for both the countries; as on one hand the jewelry hubs can serve as captive production units for US retailers and on the other hand Indian manufacturers can benefit from the global expertise of their US counterparts.

Few months back, Gitanjali Gems Ltd announced a major restructuring of its business to create better synergy within group companies, bring down costs and improve cash flows for "unlocking value in future". 

The company at present is consolidating its various subsidiaries which are into jewelry retail under different brands like Gili and Asmi besides exports.

Gitanjali Gems Ltd's board had already approved the merger of its arm Gitanjali Exports Corporation Limited (GECL) with itself. As part of the consolidation exercise, the board approved the schemes of amalgamation of various group companies.

Accordingly, Asmi Jewellery India Ltd and Spectrum Jewellery Ltd will be merged with Nakshatra Brands Ltd. All the three entities are step down subsidiaries of the company. Gitanjali Jewellery Retail Ltd and Gitanjali Lifestyle will be merged with GILI India Ltd. Gitanjali Jewellery Retail and Gitanjali Lifestyle are the wholly-owned subsidiaries of the company, whereas Gili India is the step down subsidiary of the company.

The amalgamation is subject to the approval of High Courts and all other statutory approvals as may be required under the Companies Act, 1956.

Though presently there are demand woes - higher prices, a weak monsoon and oversupply of bullion following robust imports earlier in 2015; demand could improve soon as the festival season kicks off. The nine-day Hindu festival of Navratri started on Tuesday, to be followed by Dussehra, Dhanteras and Diwali in the next few weeks - all considered auspicious periods to buy gold.

The stock seems to have bottomed out in the Daily Candle Stick Chart. Buy the scrip at the CMP of Rs.36.30, for a short term target of Rs.45.

Hope you enjoyed my recent calls on Tata Steel Ltd, Jindal Saw, Hindalco Ltd, etc. 

Hindalco Industries Ltd: Buy

CMP: Rs.83.65

The stock  is showing strong  bullish trends after crossing Rs.79 on the upside. Today the scrip tried to cross the resistance zone of Rs.84.50-84.60.......

Moreover, when Vedanta Ltd, a peer group company,  closed at Rs.103.60, up more than 10%, then Hindalco Industries Ltd (Rs.83.65) shouldn't (or cannot) be far behind. 

A weak rupee will benefit the company. Also, any hike in import duty (from 5-10 per cent) as demanded by the industry should help. 

Long-term positives

Hindalco’s long-term prospects, however, remain strong. Its copper segment, which contributes about 15% of operating profits, faced revenue pressure from falling metal prices. However, thanks to better smelting margins, profits improved Y-o-Y in the June quarter by 8%.

This segment should see consistent growth as refining margins are expected to be robust.

Its Utkal alumina refinery plant — among the low-cost plants globally — is operating at nearly full capacity utilisation.

The Aditya smelter’s utilisation is expected to improve from about 55% levels currently to full capacity by the end of the financial year.

Also, margins should improve in the long term as captive coal output ramps up.

Uptick in aluminium demand from the automotive segment to meet stricter global emission standards should boost revenue and profits for Novelis. The company has debt of about Rs.60,000 crore and it may remain at these levels with the capex cycle nearing an end. The company's net debt to equity is about 1.7 times. 

Therefore, Fresh Positions can be taken in the counter at the CMP of Rs.83.65 (BSE), for short term targets of Rs.93-97. Moreover, those who are already holding the scrip, can remain invested as the near-term negatives seem to be priced in and the company’s long-term prospects remain strong. The book value of the shares of the company is Rs.182.36, which is much lower than the CMP of Rs.83.65.

Rising consumption likely to keep soyabean oil prices, exports steady

Oct 04 2015: The Union cabinet last week extended the period of the “control order” for pulses, edible oils and oilseeds by a year more.

“The government has now decided to extend it (control order) till September 30, 2016. This would enable the state governments to take appropriate steps to ensure supply of these essential food items without any problem,” Union communications and information technology minister Ravi Shankar Prasad told mediapersons after the cabinet meeting.

Soyabean production in the country is expected to be nortmal this year at 10.7 million tonne after it touched a record high of 11.9 million tonne in 2013-14.

The monsoon has been favo­urable for the crop in Madhya Pradesh, Rajasthan and Gujarat, major producers of the commodity. On average, Madhya Pradesh produces 74 per cent of India’s total soya bean crop and Rajasthan, 10 per cent.

The stock levels too are high because of lower crushing in the previous year. As for consumption, Chinese imports have been influencing prices. A sluggish economy and lower imports by China have affected most commodity counters.

Meanwhile, Union agriculture minister Radha Mohan Singh last week said the end-season revival of the monsoon across north, east, west and central regions would help rabi crops planting and production to register an increase over the last year.

The agriculture department last Monday had indicated that import duty on edible oil needs to be hiked further. The government has raised the import duty on crude edible oils to 12.5 per cent from 7.5 per cent and refined edible oils to 20 per cent from 15 per cent, leaving a gap between the two intact at 7.5 per cent.

India’s soyabean oil consumption on an average is 3 million tonne, with domestic supply meeting half the demand. Consumption is expected to grow 3-4 per cent on average every year. Commodity analysts felt that rising consumption, at a time when production is not able to keep pace with demand, will lead to higher imports in the coming year.

According to the latest report by Emkay Commodity Research, the October refined soyabean oil futures at the National Commodity & Derivatives Exchange (NCDEX) traded strongly positive on concerns of crop damage, festival-led demand, prospect of more hike in import duty of edible oils and tracking bullish signals from the Chicago Board of Trade (CBOT). CBOT prices had jumped amid improved demand. Positivity in palm oil has also supported soyabean oil prices. Also, the ongoing festive season has provided firm undertone to the market. “Prices look to trade upside on expectation of a further hike in the import duty of edible oils, festive season-led demand and tracking bullish signals from global counterpart while the extent of upside may be restricted on record high imports,” the report said.

Soyabean oil prices in India are influenced by global edible oil prices as well. Rabobank Agri Commodities report said, “Our price forecast for soyabean oil remains bearish from current levels, but is slightly higher for soya-bean meal. The factors influencing soyabean oil prices at this point, are:

*US soybean oil stocks are rebuilding faster than anticipated,

*Basis values for soya bean oil and canola are not reflecting tight supplies, and

*Global demand for soymeal remains strong, but the US market share will decline, partially due to changes in currency values.”

“The USDA’s (US department of agriculture) higher than expected soyabean yields and production estimates for the US in 2015-16 pressured soya products following the August crop report. However, we see upside for soyameal futures on robust demand. Our soyabean oil price forecast for the third quarter has been lowered by USc 1.50/lb to USc 30/lb, while Q4 and Q1 prices were shaved just USc 0.50/lb to USc 30/lb. We are looking for relatively steady soyabean oil futures prices over the next 12-month period,” the Rabobank report said.

Courtesy: Mydigitalfc.com

Aluminium producers demand safeguard duty on imports

BHUBANESHWAR, 6 Oct, 2015: Domestic aluminium producers such as Vedanta, Hindalco and Nalco are urging the government to impose a safeguard duty on aluminium imports as was done in the case of some steel products, due to falling international prices and increasing production costs.

Aluminium Association India (AAI) representatives plan to meet revenue secretary Hasmukh Adhia on Friday to push their case.

"We are confident of taking up our case of safeguard duty on specific aluminium products, which is in line with what the government has done for the steel industry," said Abhijit Pati, CEO at Vedanta Aluminium.

The Narendra Modi government had recently imposed a 20% provisional safeguard duty on hot-rolled flat steel products for 200 days.

AAI said aluminium deserves to be treated as a core industry, at par with steel. At present, imports account for 55% of aluminium consumption in the country. Prices of the aluminium on the London Metal Exchange had fallen 42% since its peak in April 2011 to $1,540 a tonne in August, according to data shared by the association.

At the same time, cost of production for AAI members has risen 29%.

Vedanta has already shut down a rolling mill of Balco in Chhattisgarh due to lack of availability of viable bauxite supply. Its Odisha refinery, currently running at half its capacity, too could be shut down if things don't improve, officials said.

Vedanta group CEO Tom Albanese, Hindalco deputy MD Satish Pai and state-run Nalco CMD T K Chand had met finance minister Arun Jaitley last month and sought doubling of import duty on all aluminium products to 10% from 5% now.

They had said that while they had invested Rs 1.2 lakh crore to ramp up capacity almost 50% of their installed capacity was lying idle even as their combined debt stood at Rs 70,000 crore.

However, despite aluminium producers' meetings with officials of finance ministry, mines ministry and the Central Board of Excise and Customs, import duty on the metal has yet to be raised.

Courtesy: The Economic Times

WINNING STROKES: THINK DIFFERENT

Photo: A1data Entry

Tata Steel Ltd recommended last week at around Rs.217, today crossed Rs.250, intra-day and is now trading at Rs.250.40. Most of the metal stocks are rising, not only due to value buying, but also due to better prospects in the construction sector going forward. The negatives are already factored in the current prices of the metal stocks and therefore, most of them are showing upswing. Very recently, Alcoa's chief executive said, "The global aluminium demand will grow by 6.5% in 2015 and will double during this decade". Moreover, an uptick in aluminium demand from the automotive segment to meet stricter global emission standards should boost revenue and profits for Novelis and other Aluminium companies. Also, Hindalco Industries Ltd's, debt of about ~Rs.60,000 crore may remain at these levels for quite sometime, as the capex cycle is nearing an end.  Hindalco Industries Ltd's net debt to equity is about 1.7 times.
Rohit Ferro Tech Ltd recommended in this blog only a few days back for a target of Rs.9.7 today closed at Rs.6, up 4.35%.

Reliance Communications Ltd recommended to the Premium Group members at Rs.72, touched Rs.78 and is now trading at Rs.75.40. 

Jindal Saw Ltd recommended at Rs.67.5, to the Premium Group members on 7th October, 2015; today it touched Rs.71.90, intra-day. 
Rasoya Proteins Ltd hit the upper circuits today at Re.0.28 in the BSE. In the NSE, it closed at Re.0.30. The stock should move up from here, due to increased positive outlook of the company. Meanwhile, The Economic Times, wrote on 9 October, 2015: "....monsoon and the sowing for soybean has been well above average and the carry forward of the previous year is more than comfortable to meet the demand before the new crop comes in".

Today, another stock from the metal sector was recommended to the Premium group members at Rs.84.35, for a short term target of Rs.93. What is the name of the scrip? Join the Premium Services, to stay ahead of others.

WINNING STROKES: THINK DIFFERENT

Photo: V C Circle

Tata Steel Ltd recommended to the Premium Group members at Rs.217 on 05 October, 2015; today touched Rs.237.70 intra-day. The steel companies are moving up along with those in the construction space. 

Yesterday, Reliance Communications Ltd was recommended to the Premium Group members, today it touched Rs.76.75 intra-day.  

Lanco Infratech Ltd was recommended to the Premium Group members at Rs.3.25 on 9th September, 2015. The scrip made a high of around Rs.5.9, when profit booking was suggested to the Premium Group. Today it closed at Rs.4.85. This means that even if you somehow get the name of a stock, you might not be able to make gains, without proper guidance. This market is not for the novices and part-timers. Get the services of experts, to get maximum benefits from the stock market. 

Buy Rohit Ferro-Tech Ltd at Rs.5.75, for a target of Rs.9.7 (recommended to the Premium Group at Rs.5.68). Rohit Ferro Tec is in the Mining & Minerals sector. The current market capitalisation stands at Rs.65.42 crore. Earlier there were media reports that Balasore Alloys Ltd (formerly Ispat Alloys Limited), which is part of the Ispat Group, had inked a deal to acquire Rohit Ferro-Tech's Jajpur-based manufacturing unit for an enterprise value of $164.5 million (approximately Rs.1,025 crore). The company decided to dispose of the Jajpur unit so as to ease its financial burden and improve its cash flow requirement. It also has units located at Bishnupur and Haldia in West Bengal.

The steel sector should do well in the coming days, after a tide of imports created problems for the players. It is pertinent to mention here that the Indian economy, which grew at less than 5% for two consecutive years in 2012-13 and 2013-14 (going by a previous gross domestic product—GDP—series), saw investment come to a virtual standstill during that period. However, the government is filling the gap by pushing up capital spending. It is encouraging to note that the government’s plan expenditure jumped 112% year-on-year in the April-July 2015 period, with the capital component of plan expenditure leaping 84%, according to a 1 September report by Deutsche Bank Market Research.

Today, a stock from the Jindal Group was recommended to the Premium Group members, as a buy. Can you name the stock? Join the Premium Group, to stay ahead of others. 

Note: I am changing my location in Mumbai (Bombay), hence I would be very busy for the next 9-10 days. Hence, both the Premium and Free blog might not get updated daily. Please bear with me. 

SAIL, Essar hike prices of flat steel prodcuts, take advantage of safeguard duty 

Photo: SAIL

KOLKATA,2 Oct, 2015: Major steel producers have announced a price hike on flat steel products, taking advantage of the 20% safeguard duty imposed last week on hot rolled (HR) coils. The country's largest state-run steel producer Steel Authority of India (SAIL) has raised prices of flat steel products like HR coils by Rs 700 per tonne. Essar Steel too on Thursday decided to raise prices by Rs 500 per tonne on its range of flat products with immediate effect. 

Similar moves are expected to be made by other private sector players too within the next few days, causing a furore among a section of the steel users. They have protested against the hike and raised the demand for a 20% anti-dumping duty on finished steel to create a level playing field. "Our margins are under pressure. Imports continue to affect us. The market remains tough," an official in a leading steel company said to justify the hike. An industry source said the price change is more in the nature of a correction after the prices dropped by almost Rs 10,000 over the past year. 

Analysts were surprised by the timing of hike since the steel market remains lacklustre and the price increase came close on heels of the safeguard duty. 

"The key factor that can sustain any price increase is a revival in steel demand. However, in this case, the main user industries for HR coils -auto and consumer goods -remain slow. Hence, main producers are perhaps testing the waters by announcing a price hike," Goutam Chakraborty, metals analyst at Emkay Global said. 

An official with a top private sector steel producer said they were likely to announce a decision on prices on Monday (October 5) ahead of "a long weekend before us." 

Reacting to the price hike a sizeable section of steel users have called for imposition of a 20% anti-dumping duty on finished stee products to counter the 20% provisional safe guard duty on hot rolled coils a key raw mate rial for value added steel products like seam less tubes & pipes, engineering and fabrication as well as the auto sector. The safeguard duty has prompted steel pro ducers to hike prices making the input mate rial expensive and manufacturing costlier for a large number of end users. This, accord ing to them, will adversely affect the govern ment's 'Make in India' campaign since stee is a major input for the manufacturing sector as a whole. 

"The government should immediately im pose 20% duty on finished manufactured products of steel coming into India to pro vide a level playing field. Imposition of safeguard duty of 20% on hot rolled (HR) coils has made our raw material expansive and domestic manufacturing costlier. How can we compete with imports?" 

H L Bhardwaj, secretary general of Federation of Industries of India (FII), a grouping of domestic manufacturers of seamless tubes and pipes said. He added the domestic seamless pipes industry, which employs over 25,000 people, is staring at imminent closure due to dumping of cheaper products from China. 

"The industry is reeling under low capacity utilisation of 20-30% for the past year and may be forced to shut down factories leading to job losses and closure of ancillary industries,

H L Bhardwaj, secretary general of Federation of Industries of India (FII), a grouping of domestic manufacturers of seamless tubes and pipes said. He added the domestic seamless pipes industry, which employs over 25,000 people, is staring at imminent closure due to dumping of cheaper products from China. 

"The industry is reeling under low capacity utilisation of 20-30% for the past year and may be forced to shut down factories leading to job losses and closure of ancillary industries,"

Bhardwaj said. With a base of 4.5 million tonne, pipes and tubes form a sizeable and critical chunk of steel users, along with other aggrieved user segments like general engineering, fabrication and auto sector. 

Courtesy: The Economic Times

DO YOU KNOW?

Lanco Infratech Ltd (Rs.5.97) recommended on 9th September, 2015, at Rs.3.25 has hit another buyer freeze today. The scrip has almost doubled in the last one month, after its recommendation was put on the Premium Blog. The share was chosen amongst a group of Infrastructure companies, based on some positive developments.

Meanwhile, Lanco Infratech Ltd has allotted 26,51,74,603 (Twenty Six Crores Fifty One Lakh Seventy Four Thousand Six Hundred and Three only) equity shares of Re.1 each at a price of Rs.6.30-- promoters’ contribution being Rs.167.06 crore into equity shares of the company.

How to play the scrip of Lanco Infrastructure Ltd from now on? Join the Premium Service, to churn maximum benefits from the market. 

DO YOU KNOW?

Karuturi Global Ltd (Rs.2.56) is the world's largest producer of cut roses, having a global present in Asia, America and Europe.

The company has its operation in India, Ethopia, Dubai and Kenya, diversified into agriculture, floriculture and food processing producing Pulses, Oil Seeds, Maize, Sugar, Cut Roses, Plants production and distribution, Gherkins, Baby Corn, Jalapenos and Bottled Pickles. With over 292 hectares under greenhouse cultivation, the company annually produces around 555 million stems of quality cut roses for exports to high-value markets.

The company has identified agri-business as its prime growth engine and taken up cultivation in Ethiopia on a big scale to become a major player in the global agri-product market, mentions its website.

Recently (August 17, 2015), ICICI Bank acquired 8.89% stake in this leading rose exporter (Karuturi Global Ltd). Therefore, accumulate the shares of the company on declines for some good returns over 6-9 months.

Gitanjali Gems Ltd: Buy on Declines

Gitanjali Gems Ltd was recommended yesterday at around Rs.33.5. The scrip today touched an intra-day high of Rs.39, before closing at Rs.37.75 in the BSE.

The company's consolidated Q1 net for the quarter ended June 2015 nearly tripled to Rs.28.05 crore when compared with Rs.10.15 crore in the corresponding quarter a year ago. Total income also surged by nearly 42 percent to Rs.2,952 crore from Rs.2,082 crore. 

The scrip should be accumulated on declines as it could cross Rs.60, by this Deepawali..........

ICICI takes 8.89% in rose exporter Karuturi for Rs.25 crore

New Delhi | 18 August 2015: ICICI Bank on Tuesday said it has acquired 8.89% stake in leading rose exporter Karuturi Global.

"ICICI Bank Ltd (India) acquired 72,000,000 equity shares by way of invocation of pledge," ICICI Bank said in a release on BSE.

As per the filing, ICICI Bank had acquired 8.89% shares in Karuturi on August 17, 2015.

At yesterday's closing price of Rs.3.43 of Karuturi, the deal is valued at over Rs.24.69 crore.

Karuturi Global is a leading producer of cut roses with operations spread across Ethiopia, Kenya and India.

With over 292 hectares under greenhouse cultivation, the company annually produces around 555 million stems of quality cut roses for exports to high-value markets.

The company has identified agri-business as its prime growth vertical and taken up cultivation in Ethiopia on a big scale to become a major player in the global agri-product market, says its website.

Courtesy: DnaIndia.com

Rasoya Proteins Ltd: Update

I had spoken with the sources of Rasoya Proteins Ltd last week and these are the findings: 

• The company is planning to open the main plant between the period September, 2015-December 2015. This is now almost certain as the farmers are expecting good soya-bean crop, during this harvesting season; starting from September, 2015. 
• The company is in constant touch with the banks to get their loans restructured. The management is also looking for other opportunities get the funds. 
• The company could also come up with a preference issue for the promoters or infuse funds in a revamping operation.  
• The FY15 Annual Report of the company is likely to get updated in the BSE Website, either by the end of August., 2015 or in the 1st week of September, 2015. Naturally, the share price of a company increases before the publication of the annual reports.
• The company is expected to get good amount from the Insurance Claim (of Rs.34 Cr) towards Soyabean Stock Destroyed/Damaged due to fire; but it is likely to take another 3-4 months, get settled. 
• This time the company could import seeds, if they are available cheap in the international market. 
• The directors has appealed to the SAT, against the SEBI order, and a favourable verdict is expected. 
• However, the fund shortage is the biggest challenge for the company at present. If this gets somewhat resolved, then the share price could cross Rs.10, within the next 12 months. 

Conclusion: Buy the shares of the company on all declines with a SL of Re0.20, for short term targets of Re.0.60 and Re.1.00. 

Gitajali Gems Ltd: Buy

CMP: Rs.42.30

Gitanjali Gems Ltd recently announced the Un-Audited Standalone results for the Quarter ended June 30, 2015.

The Company has posted a net profit of Rs.158.014 million for the quarter ended June 30, 2015 as compared to Rs.79.692 million for the quarter ended June 30, 2014. Total Income has increased from Rs.15343.864 million for the quarter ended June 30, 2014 to Rs.16873.250 million for the quarter ended June 30, 2015.

The Un-Audited Consolidated Results for the Quarter ended June 30, 2015 is as follows:

The Group has posted a net profit after taxes, Minority Interest and Share of Profit/(Loss) of Associates of Rs.280.522 million for the quarter ended June 30, 2015 as compared to Rs.101.536 million for the quarter ended June 30, 2014. 

Total Income has increased from Rs. 20815.980 million for the quarter ended June 30, 2014 to Rs. 29526.728 million for the quarter ended June 30, 2015.

Moreover, the consortium of bankers have assessed the working capital requirements and the sanctions are awaited with modified terms. The company's request for substitution of security and release of cash margin is accepted by the consortium of banks and on providing alternate collateral securities to banks, cash margins and collateral amount to Rs.55.98 Cr, would be released by the banks which will cover the overdrawing from Banks. The company's over drawn position in the working capital account as on June 30, 2015 amounted to around Rs.43.96 crores which is mainly on account of non servicing of interest and charges. 

Buy the scrip at Rs.42.30, for a short term target of Rs.64 and medium term target of Rs.72.

Do you know?

Educomp Solutions Ltd came out with a little better set of numbers for the June, 2015 quarter, speaking sequentially. It has reported a consolidated total income from operations of Rs.143.23 crore and a net loss of Rs.85.26 crore for the quarter ended Jun '15. For the quarter ended Mar 2015 the consolidated total income from operations was Rs.119.42 crore and net loss was Rs 153.00 crore.

Educomp is the largest Education Company in India and the only company spread across the entire education ecosystem. From schools to skills; over last two decades Educomp group has empowered over 30 million learners and educators across over 65,000 schools to imagine, think and create a better future. Founded in 1994, the company today has offices across India, in Singapore and in the United States.

The scrip was recommended to the Paid Members at around Rs.13.10, this week. Today, it closed at Rs.13.66, after touching an intra-day high of Rs.14.19; bringing smiles to the Paid Group members. 

Meanwhile, Rasoya Proteins Ltd (Re.0.26) is likely to start hitting upper circuits in the coming days, due to some latest positive developments (which was mentioned in the Paid Blog, today). 

Rasoya Proteins Ltd: Buy in Bulk

Rasoya Proteins Ltd (NSE Code: RASOYPR and BSE Code: 531522), a listed company is one of the major soyabean processors in the state of Maharashtra. It markets the Rasoya brand of Soya-oil, which off-late has emerged as a leading brand of edible oil in Maharashtra.

It is to be noted that low Soyabean output since the last two years has been one of the major reasons for the current depleted fundamentals of the company (apart from the GDR fiasco). 

Meanwhile, Rasoya Proteins Limited, which has a debt of over Rs.100 crore, had been classified as a NPA this April (2015) by a consortium of Banks, led by State Bank of India (SBI)--Bank of Baroda (BoB) is also having a share in the loan. However, during the last quarter, the company duly lodged Insurance Claim of Rs.34 Cr with the insurer towards Soyabean Stock Destroyed/Damaged due to fire which is yet to be realized.

The promoters have already indicated that low output and high prices of soyabean have hit the company's profitability, affecting the repayment of loans. 

However, better prospect of Soya-crop this season, has again raised the hopes of the shareholders. Also, the company is looking to operate its main plant with increased capacity, post-harvest season, beginning from September, 2015.

During the June 2015, the company came out with a slightly better standalone results, speaking sequentially.

The main activity of the company--Solvent extraction has not been carried out during the entire June, 2015 quarter due to non availability of Agro based Raw Materials, Soyabean Seed. As a consequence the Refinery and Captive Power Plant operation remained closed during that period. However, the plants for Value added products, viz. Fish Feed and Powder Lecithin  are in operation.  

The company's full Product Range Includes:

• Soya Flakes / Grits :- Soya DOC, Soya Hi-pro DOC, Soya Full Fat Soya DOC / Meal - Enzyme active, Soya Grits Untoasted, Soya Flakes - Toasted - Food grade, Flakes MPDI, Full Fat Grits,
• Soya Flour - Toasted / Untoasted, Food grade / Feed Grade, Hi-pro flour,
• Soya Lecithin : Liquid and Powder,
• Soya Textured Protein,
• Soya Refined Oil,
• Fish Feed.

It is a Reputed Manufacturer and Exporter of Soya Products, Wheat Flour, Fish Feed and Power generation in India. It has three Soya Processing Units with a total capacity of 1800 MT per day. It also has two refineries with capacity of 250 MT per day. Moreover, it possesses important certificates like: 

• Cert ID NON GMO certificate,
• Kosher certificate,
• HalalCertificate,
• ISO 22000:2005. 

Buy the shares of the company for a short term target of Re.1 and long term target of Rs.10. The general theory is that the share of such a company cannot trade below its Face Value even with these fundamentals. 

The investors/traders should note that it is a SPECULATIVE COUNTER and is ONLY SUITABLE, for high-risk-taking-individuals.

Brokerage Report

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