Letters from the Blog Readers

Dear Suman Mukherjee Sir,

Good Morning.

I suppose in point number 4 for Infinite Computer Solutions, target price is 220-225 as the current buy price is 180. 

Thank you Sir for the good work that you are doing by helping small investors like us.

Best Regards,

Shaukat Ali Ansari

                                                   ---x---

Yes, you are right!! Thanks a lot for the required correction.

Important

1. Those traders who entered Vedanta Ltd at around Rs.64-65 are suggested to book profit at Rs.75-74 and wait on the sidelines for the scrip to come around Rs.67-69, for taking fresh positions.

The crude oil prices have again started to play rock and roll and in such circumstances it would be better if you ply safe.

2. Rasoya Protein Ltd (Re.0.25) is yet to start its main plant and its power plants. Therefore, the investors are suggested to refrain from taking fresh positions in the counter.

3. This time many traders are expecting some form of incentives for the Gems and Jewelry sector, in the upcoming budget. Hence, traders can increase their holdings in Tara Jewels (Rs.42), Gitanjali Gems Ltd (Rs.33), P C Jeweller (Rs.401.25), etc.

4. Since the crude oil prices have again started to slip, it is better to stay put with cash, except in safe Heavens like Gold.

Note: This message was sent to the Premium Groups, today morning.

Important

The pre-budget rally is about to begin and crude oil

prices have started to inch up; hence you can think of taking positions in some of the beaten down counters:

1. Investors can take fresh positions in Vedanta Ltd at Rs.59-62, for a short term target of Rs.79-81.

2. Investors can take fresh positions in ARSS Infrastructure Projects Ltd at Rs.28-29 for short term targets of Rs.35-37. Those who have not exited at the SL can average the share price by buying at the current levels.

3. Investors can take fresh positions in Suzlon Energy at Rs.13-13.45 for short term targets of Rs.15-17.

4. Investors can take fresh positions in Infinite Computer Solutions Ltd at Rs.180, for short term targets of R.120-125.

5. Investors can take fresh positions in Chambal Fertilizer at Rs.51.80 for a short term target of Rs.65.

6. Investors can take fresh positions in R S Software at Rs.59.60, for a short term target of Rs.65.

7. Investors can take fresh positions in Gitanjali Gems at Rs.33.60 for short term targets of Rs.39-41.

8. Investors can take fresh positions in Housing Development & Infrastructure Ltd at Rs.59.10, for short targets of Rs.67-71.

Note: This information was posted in the Premium Blog about half an hour back. The Prices mentioned are threfore the recommended prices in the Paid Blog.....

Questions From the Blog Readers

I am a regular reader of your blog.you provide very valuable information regarding the share and it is very useful to the small investors. I have (xxxx) lakh share of Rasoya protein @ .40 paise and I want to add more.How is the future of this compnay? I can hold for more than two years.

I have also (xxxx) shares of suzlon @ 15.00.How is the future of this company? I can hold as long as suggested.

Awaiting your reply....

Thanking you,

Ketan Acharya

E-mail: ketan.acharya 2002@gmail.com

                   ---------x-------

 1. Rasoya Proteins Ltd (Re.0.25) has successfully resolved a part of the GDR issue and is hoping to get a favourable verdict from the SAT. Also, it is in conversion with various lending banks to restructure its loans. The company is also taking measures to open its main plant and its power plants.

However, the last three positive news are still in the realm of speculation. Therefore, those who are punters can increase their holdings in the scrip, while risk averse investors should wait for some more time for the froth to get cleared, before taking fresh positions. For the moment the scrip is likely to trade in the range of Re.0.25-0.30.

2. The fortunes of Suzlon Ltd are still unclear. Moreover, fall in crude oil price is negative for the scrip. In such circumstances, I would suggest you to book profit in the stock at around Rs.17-18-21.70 and enter any share in the IT, FMCG or Auto space (for short term investors). However, long term investors can hold the counter with a SL of Rs.12.70.

Where is Crude Oil headed......

Photo: See it market

The Crude oil has started to move northward, following rumors of a possible OPEC-Russia talks in February to cut the production by at least 5%.

Crude Oil prices rose on Friday, rebounding more than 25 percent from 12-year lows hit last week and cutting losses for the month, on prospects of a deal between major exporters to cut production and curb one of the biggest supply gluts in history.

For the week, Brent was 7.9 percent higher and U.S. crude 4.4 percent higher, paring their monthly losses to 6.8 percent and 9.3 percent respectively.

Baker Hughes reported its weekly count of oil rigs in U.S. fields fell by 12 to a total of 498. At this time last year, drillers were operating 1,223 rigs in U.S. oil fields.

Also on Friday, monthly data from the U.S. government's Energy Information Administration showed American oil production ticked down slightly in November. U.S. output stood at 9.318 million barrels per day in November, versus 9.370 million bpd in October. 

Therefore, the moot question remains where is the crude oil headed in the short term?

Core Labs Commentary regarding Crude Oil maket in 2016:

"At current U.S. activity levels, Core predicts 2016 crude oil production to be lower year-over-year; perhaps falling bye over 900,000 bopd in 2016. This, coupled with the continuing decline in international production and the continuing increase in global energy consumption, should create a tight crude oil supply market for the second half of 2016, which should lead to increased crude prices and industry activity levels worldwide.

The Company continues to anticipate a "V-shaped" worldwide activity recovery in 2016 with upticks starting in the third quarter. Global demand for hydrocarbon-based energy continues to improve, while worldwide crude oil supply peaked in the second half of 2015, beginning a decline that Core believes will continue through all of 2016. The Company currently believes that U.S. land production peaked in March 2015 and has fallen since then by over 600,000 barrels of oil per day ("bopd"), some of which was offset by new additions to production in the Gulf of Mexico ("GOM") as a result of recent field developments coming on-line in 2015. Given the current, depressed commodity prices, Core believes further new additions to production in the GOM will not be sustainable. Based on currently available worldwide crude oil production data, coupled with internal Core Lab data, Core has increased its estimate of the net worldwide annual crude oil production decline curve rate to 3.1% from 2.5%. This additional 60 basis points decline is predicated on sharper decline curve rates for tight-oil reservoirs and the significant decline in maintenance capital expenditures for the existing crude oil production base".

While, with the current set of parameters at play it would be difficult to gauge its short term peak, but the consensus is at the $37-41 per barrel, levels.

Tumbling energy prices, stemming from worries about weakening demand from world No2 economy China, have roiled financial markets. This was a concern the Fed cited as a factor for keeping its key policy rate at 0.25-0.50 per cent on Thursday.

The Fed's worry over global and financial developments spurred selling in the US dollar against most major currencies.

Now the sudden rise in the price of crude oil has given a fresh lease of life to the commodity market. The stocks like Vedanta Resources have already started to rocket-up.

In such circumstances, I would like to go full hog in the depleted commodity sector for the time being.

Vedanta Ltd: Buy

CMP: Rs.64.4

Vedanta Ltd's June bid for the rest of Cairn India Ltd could look more rosy as the crude price moves northwards. The commodity price stability means the offer of one Vedanta Ltd share, plus preferred stock, for every Cairn share could gradually approach Cairn’s market price.

Mr.Agarwal has already taken several measure to cut costs and is in talks with banks, to restructure its debts. Anil Agarwal might even take the route of funneling cash up, through dividends or through intercompany loans as it has done in the past; as his back get pushed towards the wall, more and more. 

Moreover, in a recent interview to a financial portal, Anil Agarwal, Chairman of Vedanta Group said that although commodity prices are currently under pressure and impacting the company’s business, they will be out of this situation soon, adding that Vedanta is at a comfortable position on Zinc and crude oil prices are also close to bottoming out.

Vedanta Resources owns around 63% of Vedanta Ltd which, in turn, owns almost 65% and 60% of cash cows Hindustan Zinc and Cairn India.Vedanta Resources is a holding company and relies on cash flows from its various operational subsidiaries to service its obligations.

Global markets slumped at the start of the year on fears that a slowdown in China would spread to the rest of the world economy, while oil prices sank to 13-year lows.

Market turbulence sets the backdrop for a meeting of the U.S. Federal Reserve on Tuesday and Wednesday, while Bank of Japan policymakers gather on Jan. 28-29.

Last week, the European Central Bank signaled it could deliver further monetary stimulus, raising hopes that other central banks might take the same path.

The market rout meanwhile could throw the Fed off its course of gradual interest rate hikes.

"Attention will now turn to the U.S. Federal Reserve and the Bank of Japan's latest policy decisions later this week, with the main focus on the U.S. central bank in the wake of last month's historic decision to raise rates for the first time in nine years," said Michael Hewson, chief market analyst at CMC Markets.

Therefore, buy the shares of Vedanta Ltd at the  CMP of Rs.64.4 for short term targets of Rs.95-96. There is no need of putting any Stop Loss, as the stock is already avaialble at a dirt cheap rate.

Do you know?

Veer Energy Ltd (Rs.4.18) was recommended on 14 January, 2015 at Rs.3.30-3.50, for a target of Rs.5. That Target was reached long back. Meanwhile, the scrip made a 52-week high of Rs.6.69 on 5 January, 2016.

The company has great future ahead. Therefore, the investors are suggested to accumulate the scrip when its price stabilizes, for a target above Rs.10, in the next 18 months.

DO YOU KNOW?

In a representation made to the minister, Sopa has pointed out that as per the National Institute of Nutrition, the edible oil requirement of India with a population of 1,300 million comes up to 16.607 million tonne. As against this, the total oil availability in 2015 was 21.60 million tonne including 14.42 million tonne of imported oil, the Sopa chairman said. Seeking curb on excessive import of edible oils, the Soybean Processors Association of India (Sopa) has asked the government to fix TRQ (tariff rate quota) of one million tonne for soybean to help the industry and farmers. The reasons for the excessive import are low prices in the world market and low custom duty in India,” Sopa chairman Davish Jain said in a letter to commerce minister Nirmala Sitharaman.

According to Jain, import of soybean oil is also having a deleterious effect on Indian farmers, the soy industry and soy meal exports. The soybean industry and farmers have now reached a stage where the future looks grim, he said. The association has suggested that the government should fix a TRQ of one million tonne for soybean oil to be imported at the current rate of customs duty and any quantity above the TRQ should be charged the WTO-bound rate of 45%.

TRQ could also be fixed for other edible oils, the association said. Such measures will substantially reduce the foreign exchange outflow. In 2015, some 30.30 lakh tonne of soybean oil was imported as against 21.01 lakh tonne in 2014. The association has also made representations to food and consumer affairs minister Ram Vilas Paswan and agriculture minister Radha Mohan Singh.

This move is likely to help the soya oil making companies like Rasoya Proteins Ltd (Re.0.24). The shares of Rasoya Proteins Ltd seems to have buttoned out, with minimum downside. However, fresh buying should be avoided unless, there is some positive news regarding opening of the main plant and the power plants.

Meanwhile, the scrip of Brooks Laboratories Ltd, was recommended to the Premium Group Members at Rs.86.10 on 16 December, 2016. The scrip made a 52-week high of Rs.124.15 on 12 January, 2016 and is now trading at Rs.99.85.

Today, a well known stock from the software sector has been recommended to the Premium Group Members, for a short term target of Rs.145.

Join the Paid Service, to make maximum gains from the current market conditions, using my experience of around a couple of decades.

DO YOU KNOW?

It is an irony that even after repeated trys, Saudis have failed to drown the US by flooding the markets with Crude oil (1.8 Mb/day of production). By now the Saudi Arabia might have understood their mistake and may work towards maintaining the much sought after Demand-Supply equilibrium.

If this happens then we could see the Crude oil prices shooting above $60/barrel, triggering a rally in the Commodity market. For Indian shareholders, this could be music as most of the time, the share price movement (in the Indian bourses) had been been directly proportional to the crude price.

DO YOU KNOW?

All the GDR's of Rasoya Proteins Ltd have been converted into Equity shares and in turn there are no outstanding GDR's and hence there are virtually no GDR's being traded on the Luxembourg Stock Exchange, hence the Company has decided to voluntary delist its GDR's from Luxembourg Stock Exchange.

Shares of RASOYA PROTEINS LTD was last trading in BSE at Re.0.26 as compared to the previous close of Rs.0.27. However, the investors are suggested NOT to take FRESH positions, till some CLARITY over the issue emerges. 

WINNING STROKES: THINK DIFFERENT

Please Click on the Photo to Expand

Rolta India Ltd, recommended at around Rs.92.75 to the Premium Group members on 16 December 2015, touched Rs.99.30, intra-day and closed at Rs.98.65. Tell me how many of the Free Members also made money, because the stock was also recommended in this blog at Rs.95.50? Now what to do with the scrip? Confused? Join the Premium Service!!

The price of my Paid Package/s is/are expected to increase from 15 January, 2016. Those who will enroll before that will get the subscription not only at the earlier price tag, but will also get 3 months grace. Which means the price will be Rs.10, 000 per year, for 15 months. Moreover, those who will trade through my recommended brokerage house, with a minimum portfolio size of Rs.1 lakhs, will get the Premium Subscription Free of Charge, till he/she continues trading through this platform...Also, those who are willing to invest around Rs.10-15 lakhs in share market, do let me know; I have a scrip which could double in the next 12-18 months (or may be before that). We just need to buy this scrip and keep holding. The profit will be shared in a mutually agreed ratio, between you and my firm.

Vedanta Ltd, recommended on 19 December, 2015, at Rs.84.30, today touched Rs.87, intra-day and closed at Rs.86.55. The stock will break Rs.96-97, soon; remain invested. 

TV18 Broadcast Ltd recommended on 26 October 2016, at Rs.32.75 in this Free Blog, today touched Rs.46.25, intra-day (which is the new 52-week high) and closed at Rs.45.80. Congratulations to all those who made money in this scrip. Keep visiting this blog and make money. 

Pipavav Defence Ltd today touched Rs.82 and closed at Rs.79.10, on the BSE-kindly book profits and enter either Vedanta Ltd at Rs.86.55 or Hindalco Industries Ltd at Rs.81.20.

The Stock of Gitanjali Gems Ltd (Rs.42.95) has started to look good once again. Keep buying the scrip on all declines, for a short term target of Rs.48.

DO YOU KNOW?

Photo: Maffat.com

Vedanta Ltd is a diversified natural resources company. The Company's International arm, Vedanta Resources Plc  is engaged in exploring, extracting and processing minerals and oil and gas. Its segments include Zinc-India, Zinc-International, Oil & Gas, Iron Ore, Copper-India/Australia, Copper-Zambia, Aluminum and Power. The Company produces zinc, lead, silver, copper, aluminum, iron ore, oil and gas and commercial power and has presence across India, Zambia, South Africa, Namibia, Ireland, Australia, Liberia, United Arab Emirates and Sri Lanka. The Company is also in the business of port operations in India. The Company's zinc operations are located in India, Namibia, South Africa and Ireland. The Company's iron ore operations are located in India and Liberia. The Company's copper smelting and mining operations are located across India, Australia and Zambia.

The promoters' holding in Vedanta Ltd, stood at 59.52 % while Institutions and Non-Institutions held 22.99 % and 9.91 % respectively.  

Vedanta Ltd is the only company who has resumed iron ore mining in Goa after the Supreme Court lifted its 2012 ban. The company resumed mining operation in the state in August this year.  

However, the rates at which iron ore is to be transported is the bone of contention between the mining companies and truckers. The issue started with the transportation of e-auctioned iron ore. The state government had sold a total of 7.4 million tonne of iron ore through 13 e-auctions out of the 16.56 million tonne identified for e-auction. The directorate of mines and geology had notified a rate of Rs.12.33 per tonne per km for the transportation of the e-auctioned ore on April 21. Around 1,300 trucks were engaged to transport e-auctioned and freshly mined ore from Codli to Amona/Surla by Vedanta Ltd.

Now, while, the Truck Owners Association is demanding a rate of Rs.17.63 per km, the mining firms, already reeling under the impact of a meltdown in iron ore prices and plethora of taxes, have offered to pay Rs.8 per km. 

According to Aniruddha Joshi head, corporate affairs, Vedanta Ltd, around 600 truck owners have already agreed to ply at the rate of Rs.8 per tonne per km. This brings some visibility, in the ongoing tussle between Vedanta Limited and truck owners transporting iron ore.

Therefore, the stock at the CMP of Rs.84.30, remains one of the best buys for the next 2-3 months perspective, with a SL of Rs.77 and a target price of Rs.109. 

You must have remembered that I recommended Pipavav Defence Ltd at Rs.38.75, as a sure shot BUY for 18 months  price-target of Rs.90; on 27 September, 2014 (amid all so-called-uproars and acquisitions of pumping up a loss-making-no-future-company).

I then asked all the long term investors to accumulate the scrip on all declines. After that Pipavav Defence Ltd, had almost doubled from the recommended rate, made a 52-week high of Rs.85 and is now trading at Rs.79.45. 

In a similar way, the long time investors will see  value additions, in their investments in Vedanta Ltd from the CMP of Rs.84.30, over a period of time. It is a must BUY, for all the long term investors.

Rolta India Ltd: Buy

CMP: Rs.95.50

Rolta India Ltd, has bid for the Rs 60,000-crore project to design and build a Fighting Infantry Combat Vehicle (FICV) under Make in India in Defense, along with a host of other companies. 

Moreover, ending months of speculation, and for the first time in nearly a decade, the US Federal Reserve's rate-setting Federal Open Market Committee (FOMC) raised its Federal Funds Rate by 25 basis points from the 0-0.25% range to a target of 0.25-0.5%. 

The historical move, anticipated for over a year, marks the exit of the zero interest rate policy, which had been into place in the wake of the financial crisis of 2008. 

The decision comes on the back of some particularly strong macroeconomic data emerging out of the world's largest economy: the unemployment rate recently hit a seven-year low while jobs growth, too, has been steady.

This move gives some indication that probably the wounds of the US economy from the 2007-2009 financial crisis are gone and it's finally more or less on its own, without any crutches. 

This is positive especially for India IT, as IT budgets of US companies will expand now and demand will grow. 

Buy the shares of Rolta Ltd at the CMP of Rs.95.50 for short term targets of Rs.104-111.

Note: Anticipating a rate hike Rolta Ltd was recommended to the Paid Group members yesterday at around Rs.92.75.

Jindal Steel and Power Ltd: Buy

CMP: Rs.93.60

The scrip of Jindal Steel and Power Ltd, an O P Jindal Group company, is trading above its 50D, 100D, 150D and 21D, SM and EMAs.

Jindal Steel and Power Ltd (JSPL)’s consolidated performance for the September, 2015 quarter was marginally better than Street expectations. Sales at Rs.4,880 crore and operating profit at Rs.976 crore were better than the Street’s estimates of Rs.4,572 crore and Rs.968 crore, respectively. However, the company reported losses of Rs.618 crore due to exceptional items that included an impairment loss of Rs.227 crore in a foreign subsidiary and a foreign exchange loss of Rs.212 crore.

Given the pressure on realisations, the steel segment’s performance was in line, while the power segment disappointed. Steel deliveries declined 8% sequentially to 780,000 tonnes, and long-product prices declined sharply. The segment revenue, however, increased 3% sequentially at the standalone level.

Overall earnings before interest and taxes (EBIT) at Rs.319 crore were better than the Rs.115 crore in the June quarter, though down 32 per cent over the year-ago period. At the consolidated level, international subsidiaries saw an improvement in earnings before interest, tax, depreciation, and amortisation (EBDITA).

However, the power segment EBITt at Rs.188 crore was lower than the Rs.217 crore in the June quarter and Rs.245 crore in the year-ago period, despite higher power production sequentially. During the June, 2015 quarter, company shut down two 250-megawatt (Mw) units. Rising fuel costs due to a higher price for coal hit performance. Higher coal cost in the absence of captive mining is hurting performance and is a key concern of the Street.


The company is restructuring assets by selling power assets from a standalone entity to Jindal Power (96.4% stake). This will include a 6x135-Mw power plant at Angul and 2x55-Mw power plant at Raigarh.

Earlier,  Jindal Steel and Power Ltd (JSPL) told a special court that it was not involved in any conspiracy to get a coal block in Jharkhand and was the only eligible firm to get it.

Jindal Steel said it was looking to cut production costs and bring down its debt by selling some of its non-essential assets in the current fiscal year ending in March.

China makes nearly half the world's 1.6 billion tonnes of steel. With growth slowing at home, it is expected to export a record 100 million tonnes to world markets this year to help address its spare steel-making capacity.

India imposed a 20% import tax on some steel products in September to mitigate the damage to domestic companies.

Buy the shares of the company at Rs.93.60, for short term targets Rs.99-109-117. The scrip could double, in the next 9-12, months. Therefore, those who are having a little patience, can keep on adding the stock on all declines, keeping a SL of Rs.77.

Brokerage Report: Nifty, Metals and Energy Market Updates 

The Metal Stocks are likely to gain in future as the Reserve Bank of India (RBI) has kept its benchmark interest rate unchanged, after a monetary policy review. 

The RBI kept its benchmark interest rate viz. the Repo rate unchanged at 6.75% after a monetary policy review yesterday, i.e. on 1 December 2015. 

The central bank also kept the cash reserve ratio (CRR) for commercial banks unchanged at 4% of net demand and time liability (NDTL). 

Now coming to Nifty Futures, it can be said that as long as it does not close BELOW, 7920, the market is NOT expected to go DOWN, much from here.... 

In fact the current trend in the Nifty_Futures, is likely to take it towards the first weekly resistance of 8010 mark in this week. 

However, today Nifty_Futures (31 December, 2015) closed at 7959 (down 28.75 points) which is below this resistance level.

Now, if tomorrow there is further selling in the opening hours then this might take Nifty_Futures, towards the trend deciding point of 7920--further selling pressure here could change the immediate trend to negative. 

In such cases, the Nifty_Futures might slip towards 7860 mark or 7780 mark depending on the supply pressure. 

On the other hand, if tomorrow the demand remains strong and the Nifty_Futures are able close above 8010, the Bulls could see the next higher level of 8060, followed by 8140 mark.

Today the Bank_Nifty closed at 17283 (down 191.60 points). However, during this week as long as it does not close BELOW the level of 17275, it is NOT expected to go much BELOW, from here. The current trend is expected to take the Bank_Nifty towards the first weekly resistance of 17510 mark. 

Now, if the Bank_Nifty closes above the first resistance point of 17510, then the immediate trend could take it towards the next level of 17685 mark or 17920 mark, depending on the demand pressure. 

On the other hand, if the Bank_Nifty fails to close above 17510 in this week, then there are chances that it might slip towards 17275 mark. 

A further selling pressure at this level (of 17275) could turn the intermediate trend in Bank_Nifty, to negative and it might nosedive to 17100 or 16865, depending on the supply pressure.

WINNING STROKES: THINK DIFFERENT

IVRCL Ltd recommended to the Paid Groups at Rs.11.70, reached the first target of Rs.11 (intra-day high of Rs.11.23) and is now trading at Rs.10.66. 

Photo: The Financial Express

Vedanta Ltd today touched Rs.96.15, intra-day and is now trading at around Rs.94.70. This blue chip is likely to give good returns to the Patient Investors. 

Rasoya Proteins Ltd (Re.0.25), today hit the buyer freeze in the BSE. The scrip is likely to cross Re.0.30, this time. 

Tata Steel Ltd today touched Rs.245.65, intra-day and is now trading at Rs.243.20. By March, 2016, the scrip is likely to touch Rs.320, as the construction work gathers momentum. 

Reliance Communication Ltd has again touched Rs.78.90, intra-day and is now trading at Rs.78.50. You can look for targets of Rs.82-84, in the short term. 

IVRCL Ltd: Buy

IVRCL Ltd got its debt of Rs 7,350 crore restructured in June last year, but its journey since then has been full of thorns. In the quarter ended September, its net loss shot up to Rs.305 crore, while revenue remained stagnant at Rs.641 crore. To add to its woes, its accumulated losses for the first time exceeded its net worth at Rs.941 crore.

The company is currently facing a tough situation as lenders are reluctant to give new loans, even though it was sanctioned a fresh non-fund credit of Rs.1,800 crore in bank guarantees and letter of credit, in addition to a cash credit limit of Rs.200 crore as part of the CDR deal.

As part of the corporate debt restructuring, the company has a moratorium on interest payments on term loans till September 2015. The repayments are expected to start only from March next year. This means it has less than four months to fix things to enable IVRCL to improve its cash flows.

However, there seems to be some silver lining on the cards. The company is contemplating to sell some assets and divest equity in existing projects to regain control of its finances. 

Meanwhile, IVRCL Ltd has restarted negotiations with Tata Realty and Infrastructure for three of its projects, including the Chengapalli Tollways, a special purpose vehicle set up for widening the road from Chengapalli to Walayar via Coimbatore, which began toll collection from October 14.

There were recent media reports that this Hyderabad-based infrastructure player will get Rs.400 crore from the sale of three road projects in Tamil Nadu as the delayed monetisation ended up in losses.

Apart from monetising the assets, there are six more in line, it has decided to focus on realising the claims amounting to over Rs.6000 crore from various government projects. The company wants to utilise the new arbitration law that brings down the time limit for the settlement of a commercial dispute, for this purpose.

It is also looking at taking on more engineering procurement and construction projects where the role of an infrastructure company is limited to construction of projects within a prescribed budget. IVRCL Ltd has an order book of Rs.18,000 crore.  The success of the company now solely rests on its ability to generate enough cash flows.

Recently, IDBI Bank  said it has acquired an additional stake in IVRCL  Ltd, raising its total stake in the latter to over 5%. It said the acquisition was done through conversion of Funded Interest Term Loan (FITL) into equity.

Hence, high-risk-taking investors can buy the scrip of IVRCL Ltd at the CMP of Rs.8.95 for a short term target of Rs.11. Please keep a SL (must) of Rs.7.70, for any short term play.  The stock was already recommended to the Paid Groups a couple of days back at Rs.8.70.

First Source Solutions Ltd

This scrip of First Source Solutions Ltd, was recommended repeatedly around Rs.27-28 during the last few months, the scrip made a 52-week high yesterday at Rs.43.80 and closed at Rs.42.55.

Congratulations to all those who are still holding the scrip. 

Vedanta not to shut down refinery

[Editor: Vedanta Ltd (Rs.90.30) is the largest copper producer, while Hindalco Industries Ltd (Rs.73.75) is the biggest aluminum maker in India. Last month, Mehraboon Irani of Nirmal Bang Securities told a business channel that he had turned positive on metals; as he believed that global economy might recover over the next two years. I also somewhat feel that non-ferrous pack might have  bottomed out. Hence, I would suggest the investors, to have at least one of the scrips in your portfolio]

Bhubaneshwar, Nov 25, 2015: Vedanta Ltd on Tuesday said it would not close down its one million tonne per annum (mtpa) refinery at Lanjigarh since the state government has assured to sort out its raw material crisis.

"We will not shut down the plant as we are hopeful that the state government will help us meet our requirement of raw materials to run the plant," said chief executive officer (CEO) of Vedanta (Aluminium) Abhijit Pati, following a high-level meeting with chief secretary G C Pati.

The CEO said the plant requires at least 3 lakh metric tonne of bauxite ore per annum to run its refinery. "At present, the production capacity of the refinery has fallen by about 50% due to non-availability of adequate raw material," he added.

On August 25, Vedanta, which has been struggling for around 10 years to arrange raw material, had announced to shut down its refinery in a phased manner. At present, the plant is operating on a daily loss of Rs 3 crores. The plant generates employment opportunities for around 10,000 people in Kalahandi district. Earlier, in December 2012, the company had temporarily shut down its plant due to lack of raw material. After a closure of around seven months, the plant was reopened in July 2013. After that, the company was running its refinery at Lanjigarh by sourcing bauxite from Gujarat and Chhattisgarh, official sources said.

Vedanta faced a jolt after rejection of its bid to mine the bauxite reserve at the ecologically sensitive Niyamgiri Hill, home to the particularly vulnerable Dongaria Kondhs as the gram sabhas held to decide the mining project had rejected the mining plan.

State steel and mines minister Prafulla Mallik said the state government has applied for a mining lease of Kodingamali bauxite reserve in Rayagada district in favour of the Odisha Mining Corporation (OMC). "We hope to get the mining lease very soon. Through the OMC, we will facilitate long term ore linkage to Vedanta," he added.

The minister also said that the OMC has applied for prospecting license of Sasubohumali and Karlapat bauxite mines, which would further resolve the bauxite requirement of aluminium plants in the state.

Stay updated on the go with Times of India News App. Click here to download it for your device.

Courtesy: The Times of India

DO YOU KNOW?

Lanco Infratech Ltd was recommended at around Rs.3.25 some months back to the Paid Members. The scrip closed at Rs.6.40 in the BSE, at a kissing distance from the 2nd target of Rs.7.

The power producer has reported a consolidated net profit of Rs.98.98 crore for September quarter against loss of Rs.527.5 crore in year-ago period, driven by strong operational performance and favourable power tariff order.

Today, another scrip in the construction space was recommended to the Paid Group members. What is its name? And what to do with Lanco Infrastructure Ltd now?

Meanwhile. Gammon India Ltd hit 19.98% buyer freeze in the BSE and 19.92% buyer freeze in the NSE to close at Rs.15.49 and 15.65 today, in the respective exchanges. This looks a little queer when the lenders to the company led by ICICI Bank proposes to invoke the rules for strategic debt restructuring as a step to recover Rs.100 bln (1 billion= 100 Cr) of dues, from the company.