Market Mantra

The Indian markets are down following global cues: US Fed's Hawkish stance on interest rate, Russia Ukraine War and fresh cases of coronavirus in China. 

The BSE Sensex is now trading at 61,095.16 down 568.32 points (-0.92%) while the Nifty was last seen at 18,141.85 down 165.80 points (-0.91%). The main indices comprising of mostly large caps, may correct 16,000 as mentioned by Sushil Kedia, the other day, but that has nothing much to eo with the movement of small and mid cap counters, albeit some rub off effect though.

The traders should understand that small and mid cap is one basket, while large cap is another basket. Therefore, though linking the two is erroneous but it often happens in the real life. Photo: Angel One.

The small and mid cap rally is about to begin and hence you need to keep your guns ready for the final shooting.

Buy the shares of the companies obtained from distress selling from the traders tormented by margin pressures from brokerage houses. You need to buy and keep holding. Is the work too difficult?

#Today my recommended Swan Energy Ltd made a high of Rs.261. Its 2nd targets has also been achieved.

#Today the shares of Dilip Buildcon Ltd (Rs.122) made an intraday high of Rs.230.70. The company came out with good quarterly numbers. Going forward the margins are likely to improve due to lesser number of Legacy orders. Accumulate.

#Coffee Day Enterprises Ltd (Rs.47.85) will make windfall gains on the coffee beans sold, as the price was fixed when the coffee prices were touching new highs, in the international markets. Accumulate!!

#Most of my recommended counters came up with good September, 2022 quarter results, but surprisingly Zee Business only finds Banks (UCO Bank and Central Bank -- both doing well) in the list. As a result the money is flowing into banking counters only, instead of uniformly traveling into various outperforming sectors.

This market looks to be fully manipulated -- operators move a stock and TV Channels recommend them (because they look good on chart...😂😂) to the gullible investors. This either elevates a stock or makes it fall. Very sly operator game is going on in the Indian bourses.

 Coffee Day Enterprises Ltd: Result Update

Coffee Day Enterprises Ltd (Rs.48.80) came out with excellent set of numbers for the September, 2022 quarter.

The net profit of the company came as Rs 5.67 crore in the quarter ended September 2022 as against net loss of Rs.84.85 crore during the previous quarter ended September 2021. 

The Sales rose 56.15% to Rs.229.16 crore in the quarter ended September 2022 as against Rs.146.76 crore during the previous quarter ended September 2021. The quarterly results are set to improve further as the Nationwide Lockdown were lifted across India. Photo: AndhraFriends.com.

Initial Public Offering: Coffee Day Enterprises Ltd came up with an IPO at a price band of Rs.316 to Rs.328 per share in October, 2015.

The CMP of the shares of the company is at a considerable discount to the IPO price. 

Business: Coffee Day' (CCD). Company owns a network of 550 - plus Cafe outlets spread across in India.

In addition to having one of the largest chain of cafes in India, company operate a highly optimized and vertically integrated coffee business which ranges from procuring, processing and roasting of coffee beans to retailing of coffee products across various formats. 

The Company is one of the largest exporters of Indian coffee beans, primarily to Europe, Japan and the Middle East.

According to Wikipedia: Café Coffee Day Global Limited Company is a Chikkamagaluru-based business which grows coffee in its own estates of 20,000 acres. This should be valued around Rs.2000 crores.

It is the largest producer of arabica beans in Asia, exporting to various countries including U.S., Europe, and Japan.

Now calculate the value of this property against the CMP of the shares of the company.

Tata Coffee currently has about 8,000 hectares of coffee plantation, most of it located in Toopran (Telangana) and Theni (Tamil Nadu).

Debt Reduction: The debt levels have reduced significantly from Rs.7,214 crore as on March 31, 2019 to Rs.1,898 crore as at the end of March 31, 2021 and to Rs.1,810 crore as at the end on March 31, 2022.

Meanwhile, Tata Consumer Products had withdrawn a proposal to purchase the vending machine business from Coffee Day Enterprises, about two years after the firm had started talks and begun evaluating a potential acquisition.

According to the market grapevine, the deal got cancelled because the management of Coffee Day Enterprises Ltd was demanding higher price than the previous one. 

Tata Consumer Products Ltd, which owns the Tetley Tea and Tata Salt brands, had earlier proposed to buy the coffee vending business from CGDL for at least Rs.1,000 crore.

This happened because of the turnaround of the company during the last one year.

Accumulate the shares of Coffee Day Enterprises Ltd (CCDL) near the CMP of Rs.48.80 for short term targets of Rs.57/61/72/85.

 Tata Teleservices Ltd: Result Update

In September, 2022 quarter on Q - o - Q basis:

Revenue: ₹2.79b (up 2.8% from 2Q 2022).

Net loss: ₹2.93b (loss narrowed by 6.7% from 2Q 2022).

₹1.50 loss per share (improved from ₹1.60 loss in 2Q 2022).

Financial Results (Half Year Ended FY2023) - Y - o - Y Comparison:

The company has reported total income of Rs.548.12 crores during the 6 Months period ended September 30, 2022 as compared to Rs.541.51 crores during the 6 Months period ended September 30, 2021.

The company has posted net profit / (loss) of Rs.-587.86 crores for the 6 Months period ended September 30, 2022 as against net profit / (loss) of Rs.-632.08 crores for the 6 Months period ended September 30, 2021.

Advantages: Continuous liquidity support from parents, a focus on the SME segment, media reports of potential collaboration with other Tata Group companies, and transformation into a SaaS+connectivity solution provider are just a few of the positives that could be working in Tata Teleservices Ltd's favour. 

Given the rising digital adoption trend, the market opportunity in the SME space is vast. In addition, the company stated in its annual report that it is looking into restructuring options.

Tata Teleservices has seen its revenues rise owing to the adoption of cloud-based solutions by companies. It is now exploring growth in the 5G domain, the report said.

As the world moves towards a digital industry, the company provides solutions that are essential in improving efficiency. For example, it helps companies move to the cloud and secure their networks. It also offers voice solutions to companies of all sizes. 

Besides, there's a speculation in the market that the company could turn out to be a winner replicating the success and business model of Tata Elxsi or Tata Communication, other multibaggers from Tata Group stable.

Moreover, giving a stake to the government by converting debt is always a better option for both the government and the companies.

Accumulate, the shares of Tata Teleservices Ltd (Rs.97.60) for long term perspective, with target prices of Rs.141 - Rs.191. 

Company Profile: A Tata Group company, Tata Teleservices (Maharashtra) Limited (TTML) is a leading player in the connectivity and communication solutions market serving enterprise customers. It offers services ranging from connectivity, collaboration, cloud, security, IoT to marketing solutions as comprehensive portfolio of ICT services for businesses in India under the brand name Tata Tele Business Services (TTBS). 

TTBS provides integrated telecom solutions to enterprises that go beyond the purview of connectivity into offering one-stop-shop business solutions and managed services.  

Market Mantra

The Indian bourses as expected are on consolidated phase. The BSE Sensex is now trading at 61,750.47 down 41.55 points (-0.07%), while the Nifty was last  seen at 18,360.85 up 11.15 points (+0.06%). While the indices are likely to trade in a range, the action will be focused on small and micro cap counters due to the commencement of the #November #Effect.

#Buy BIOCON LTD at Rs.283, Short Term 🎯: Rs.294/Rs.297,  SL: 277.90. fundamentals of the company are looking decent. 

#Keep accumulating the shares of Nitin Spinners Ltd (Rs.196) and Nahar Spinning Mills Ltd (Rs.179). The new bales of cotton are set to arrive post 15 November, 2022. The cotton prices are falling across-the-board. 

#Today the the shares of the blue chip construction company, Dilip Buildcon Ltd (Rs.335) are doing fine. The company is all set to turn around from this (Q3FY23) quarter. I'm looking for a price above Rs.500, in the next 6 - 9 months time frame.

#Buy BPL Ltd near the CMP of Rs.67.40, T: Rs.71/76, SL: Rs.65. 

The ongoing festival season is likely to lift the fundamentals of this consumer dirable company.

Indowind Energy: Buy

CMP: Rs.15.35

Book Value: Rs.25.75

Introduction: Indowind Energy Ltd develops and sells wind farms, manages wind assets, and generates Green Power for utilities and corporations. 

Its work consists of Wind Power Project Implementation from Concept to Commissioning, Wind Asset Management Software for installed assets, including operations, billing, and revenue collection from project customers. Customers are supplied with Green Power CER (Carbon Credit) Trading and Sales.

Financials: The consolidated net profit of Indowind Energy, surged 656.86% to Rs.3.86 crore on 64.60% increase in net sales to Rs.14.60 crore in Q2 September 2022 over Q2 September 2021.

On a consolidated basis, profit before tax surged 587.7% year-on-year to Rs 3.92 crore in Q2 September 2022. Total expense climbed 32.4% YoY to Rs 10.35 crore in Q2 FY23.

The net profit surged 138.27% and net sales soared 88.63% in Q2 FY23 over Q1 FY23.

The company's net cash from operating activities stood at Rs 9.22 crore in the half year ended September 2022, higher than Rs 2.41 crore in the same period last year.

EBITDA stood at Rs. 8.35 crore in September 2022 up 56.95% from Rs. 5.32 crore in September 2021.

Indowind Energy Ltd's EPS has increased to Rs.0.42 in September 2022 from Rs.0.05 in September 2021.

Conclusion:  Buy the share of Indowind Energy Ltd for short term targets of Rs.31/32.

 Winning Strokes

The Indian bourses were on roll last Friday, after an Economic Times report indicated that the NDA government is examining possible changes to the capital gains tax regime to make it simpler, including rationalisation of the multiple holding periods.

The BSE Sensex closed at 61,795.04 up a massive 1,181.34 points (+1.95%) while the Nifty50 ended the day at 18,349.70 up by a whopping 321.50 points (+1.78%). 

In a significant positive development, foreign investors (FIIs/FPIs) have invested nearly Rs.19,000 crore in Indian equities so far this month, owing primarily to a slowing trend in US inflation and a weakening dollar.

On Monday, the markets are likely to consolidate around the current ranges. The future direction of the market will come from global cues and also from the current earning session.

However, since November Effect has kicked in, the investors should do well to buy momentum counters from the small, mid and micro cap space. I am bullish on Oil & Gas, Construction, Textile, Renewable Energy and Restaurant sectors.

#Coffee Day Enterprises Ltd (Rs.52.75) came up with good September quarter results. 

Net profit of Coffee Day Enterprises Ltd came at Rs.5.67 crore in the quarter ended September 2022 as against net loss of Rs.84.85 crore during 66 move towards my targets of Rs.84/91. The restaurant sector has been doing well since lifting of Nation Wide Lockdown. Accumulate in dips.

#Aban Offshore Ltd (Rs.49.60), India's largest oil exploration company in the Private Sector, came up with good September quarter numbers. 

Quarterly Net Loss of Aban Offshore Ltd came at Rs. 207.53 crore in September 2022 down 16.34% from Rs. 248.07 crore in September 2021.

This means the cost overrun or margin shrinkage through legacy orders has substantially come down in Q3FY23.

However, Net Sales were at Rs.94.88 crore in September 2022 down 32.37% from Rs.140.28 crore in September 2021.

The buoyancy in the crude oil prices and lowering of the number of low value legacy orders will take the scrip to Rs.71/72. Remain Invested.

#I have recommended the share of the Tata Group Company, Tata Teleservices Ltd (Rs.100.30) on last Friday at around the CMP for long term targets of above Rs.250.

According to a Business Standard report, the Tata Group Company, Tata Teleservices Ltd (Rs.100.30), is restructuring its telecom business, which is spread across various companies, by making additional investments in Tata Teleservices and exploring opportunities in 5G-based segments by providing back-end services.

It is pertinent to mention here thar in June, 2022, the NDA government at the centre allowed enterprises to set up captive non - public networks to buy 5G spectrum directly from the DoT, in order to establish their isolated networks.

Meanwhile, while Tata Teleservices continues to focus on enterprise businesses, the group has brought in Tata Communications to provide 5G-based services such as automated equipment quality inspection, inventory management, and asset tracking. Although the group sees 5G as a significant opportunity, it has refrained from purchasing the more expensive 5G spectrum. However, to stay in the game, it will most likely focus, on value-added services.

#Dilip Buildcon Ltd's (Rs.224.45) debt is nothing as compared to Tata Steel. At the end of the June quarter Tata Steel had a gross debt of ₹82,597 crore and net debt of ₹54,504 crore. As of March, 2022, the total debt of Dilip Buildcon (Rs.224) was Rs.8,783 Cr. While Reserves & Surplus was at Rs.4189.92 Cr.

The company has an order book of Rs.25,000 - plus crores. It is a blue chip company from the construction space and is rumoured to have some connections (invisible hand) with the current Madhya Pradesh government.

The HDFC Securities has already provided a target of Rs.369 for the scrip. However, I feel it will slowly move towards Rs.500 - plus, as the cost overruns or margin shrinkage from legacy projects comes down from this quarter. Accumulate!!

#Accumulate the shares of Orient Green Power Company Ltd (Rs.8.60) and RTN Power Ltd (Rs.4.20) because of the commencement of November Effect. 

 Winning Strokes

The BSE Sensex was last seen trading at 59,060.28 down 12.00 points (-0.08%), while the  Nifty was seen consolidating above the supports. The Nifty50 was seen trading at 17,507.20 up 10.45 points (+0.06%). Photo: Squareoff.in

Yesterday, the Dow Jones closed flat hinting that the US Fed might either trim down their interest rate brinkmanship or maintain status quo, to gauge the previous interest rate hikes over a period. It is a known fact the effects of any monetary tightening policy acts with a time lag. The US economy is doing fine and so is India's, and all those hoopla surrounding an impending recession is just a media speculation. Hence, buy good quality stocks from the happening sectors and keep holding.

#The energy prices are shooting over the roof, with the Crude Oil basket within an arms length of touching $100 per barrel. In such circumstances, try to be long on Crude Oil related counters.

My old favour, MRPL (Rs.59.90) is already up more than 3%. So, keep eye on (accumulate) the shares of India's largest oil exploration company in the private sector, Aban Offshore Ltd (Rs.50.20). You my also add the stock of ONGC Ltd (Rs.129.75) to your list.

#The shares of wind energy company, Indowind Energy Ltd (Rs.15.90) hit 🎯 another buy freeze. We can look forward for targets of Rs.32/37 in the coming days.

#The textile sector is all set to do well in the near future due to arrival of fresh cotton at reduced prices.

The government of India is expected to come up 2nd PLI scheme, very soon. Moreover, the depreciation of INR Vs USD will bring additional revenues for the export oriented Textile companies like Nahar Spinning Ltd (Rs.297.55), Trident Ltd (Rs.34.65), Nitin Spinners Ltd (Rs.209), etc.

# The hotel and restaurant stocks are expected to do very well in future. I have already recommended some names on Twitter, kindly accumulate the shares of those companies.

#Some of the bank stocks like my old favourite Central Bank Ltd (Rs.20.20) are moving up due to operator action. In a rising interest rate scenario it is always advisable to stay clear from Banking counters, as their loan books might shrink and NPAs might rise due to higher interest cost.

#The stocks from the sugar sector, are expected to rally in the near future since as per media reports, the government is contemplating to allow sugar exports. Moreover, the ongoing fesrival season will keep the sugar market buoyant. I've already recommended the scrip of Bajaj Hindustan Ltd (Rs.10.40).

#The monsoon clouds have almost receded from the horizon, giving way to pleasant autumn. 

The construction activities have again started to gain momentum. Today, I've recommended Indiabulls Real Estate Ltd at Rs.75.20 on Twitter.

You may also continue to accumulate, Dilip Buildcon Ltd (Rs.219) and Patel Engineering Ltd (Rs.21.80).

Winning Stokes

The Domestic benchmark equity indices finished the day with strong gains, mirroring positive global cues.

The encouraging Q2 results from IT companies have boosted investors' confidence. Touching a low of 17,098.55, the Nifty 50 index advanced throughout the session, closing near the 3D day's high of 17,328.55. Shares of banks and financial services companies were in high demand. However, media, real estate, and metals stocks fell. Photo: PGurus.

The S&P BSE Sensex rose by 491.01 points, or 0.85%, to 58,410.98. The Nifty 50  gained 126.10 points, or 0.73%, to 17,311.80.

Meanwhile, the US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.40% to 112.86. The United States 10-year bond yield fell 1.48% to 3.947.

As long as 17200/17300 - Nifty_Spot band is held, the bulls will have not much problem. Use dips to buy good stocks at reasonable valuations.

RBI and Interest Rate Hike: In a significant move, Michael Patra, the deputy governor in charge of monetary policy, emphasised the importance of timing rate hikes. Mr.Patra wrote that front-loading monetary policy actions can keep inflation expectations firmly anchored and balance demand against supply, easing core inflation pressures. It will also reduce the medium-term growth cost of bringing inflation back to target.

Mr. Satikanta Das previously stated, "The need of the hour is calibrated monetary policy action, with a clear understanding that it is required for sustaining our medium-term growth prospects."

Going forward, my preference is for a tapering or pause in the rate-hike cycle. Because monetary policy act with lags, such massive hikes in repo rates necessitate a pause.

The same applies for the US Fed too, which has been on a fast rake hike spree, since the last few months, undermining the severe side effects. Incidentally, pushing the policy rate well above the neutral rate in an environment which has a shaky growth outlook, is risky and can severely damage an economy.

#Today's recommended IRB Infrastructure Ltd at around Rs.222, made an intraday high of Rs.241.60 before closing  at Rs.239.10, up more than 10.60%. The investors should do well to hold the scrip with a SL of Rs.217.

#In the commodities market, Brent crude for December 2022 settlement rose 43 cents or 0.47% at $92.06 a barrel. Accumulate the shares of Aban Offshore Ltd (Rs.50.75).

#Yesterday's recommendation Coffee Day Enterprises Ltd (Rs.49.95) made an intraday high of Rs.51.05. The restaurant companies are expected to do well due to ongoing festival season. I have already placed a mini - report on this blog. Accumulate!

#If you have a portfolio size of Rs.2 lakhs - plus, then you can go for my profit sharing scheme, in the ratio of 65:35 between you and me (for portfolios below Rs.20 lakhs). If you've made losses earlier then join me to maximize earnings from the stock markets. For more details kindly send me a mail at: suman2005s@rediffmail.com.

#Buy the shares of Tata Teleservices (Maharashtra) Ltd near the CMP of Rs.108.70, for targets of Rs.132/141/155.

Recently, there were media reports that Tata Tele Business Services (TTBS), the brand under which Tata Teleservices offers voice, data and managed services to enterprises and carriers, has formed a partnership with Google Cloud to offer the Google Workspace suite to small and medium businesses (SMBs) in India to support their communication and collaboration needs for hybrid working.

A 10 October, 2022 Business Standard report said, the Tata group is restructuring its telecom business, spread across various companies, by making further investments in Tata Teleservices and exploring opportunities in 5G-based segments by providing back-end services.

While Tata Teleservices is focusing on enterprise businesses, the group has brought in Tata Communications to provide services based on 5G applications, such as automated quality inspection of equipment, inventory management, and asset tracking. 

Tata Teleservices (Maharashtra) Limited (TTML), a Tata Group company, is a market leader in connectivity and communication solutions for enterprise customers. Under the brand name Tata Tele Business Services, it provides connectivity, collaboration, cloud, security, IoT, and marketing solutions as part of a comprehensive portfolio of ICT services for businesses in India (TTBS).

TTBS offers integrated telecom solutions to businesses that go beyond connectivity to provide one-stop business solutions and managed services. Accumulate!

#The stock of RTN Power Ltd (Rs.4.40) is all set to give a closing above Rs.5. If you have bought at a price higher than the CMP, then kindly average to some lower levels. The company has huge land holdings in both the plants: Amravati and Nashik.

Coffee Day Enterprises Ltd: Buy

CMP: Rs.50.15

Targets: Rs.71/85

SL: Rs.47.

The meteoric rise of the Café Coffee Day brand remains one of India's greatest success stories of home-grown businesses.

The coffee beans used in Café Coffee Day outlets are grown on the company's own plantations.

Furthermore, the Café Coffee Day outlets stood out for their distinct colour schemes and custom-made furniture pieces, which gave them a distinct identity. 

Coffee Day Enterprises Ltd (CCD) is India's largest coffee chain and is owned by Coffee Day Global which is a subsidiary of Coffee Day Enterprises.

Café Coffee Day opened its first outlet in Bengaluru in 1996. By 2011, it had grown into a major business conglomerate with over 1000 locations across the country. 

Just before his early demise, VG Siddhartha owned 12,000 acres (4047 ha) of coffee plantations. A 2015 Forbes list pegged his net worth at $1.2 billion (Rs.8200 crore).

During the lockdown period, Malavika Hedge took over as CEO of the company, and the company's health began to improve. Photo: Manorama Online.

Aside from her trailblazing efforts to reduce the company's debt, she also had great success in the export of high-quality Arabica coffee beans. Her 20,000-acre coffee plantation's coffee beans are in high demand in many foreign countries.

Malavika Krishna, the daughter of former Karnataka Chief Minister SM Krishna, was born in 1969. She received her engineering degree from Bangalore University. She married VG Siddhartha in 1991 and has two sons, Eshaan and Amartya.

Triggers:

💥Post lifting down of nationwide lockdowns, the hotels, tourism and hospitality sector has received a new lease of life, with the increase in footfalls (in hotels, restaurants, shopping malls, etc). The trend has gained momentum during the last few weeks and will continue at least till this Deepavali, the festival of light. Photo: Retail4growth.com.

After that marriage season will pick up steam and this will continue till March - April next year. Then there is Christmas, Saarwswati Pooja, Makar Sankranti, Basanti Pooja, Baishakhi, and so on. The ongoing festival season is going to boost the bottomline of restaurants.

💥Meanwhile, the debt levels of Coffee Day Enterprises Ltd (CDEL) have reduced significantly from Rs.7,214 crore as of March 31, 2019 to Rs.1,898 crore, at the end of March 31, 2021 and to Rs.1,810 crore, at the end on March 31, 2022. The current debt of the company ~Rs.1500 crores.

💥Moreover, CDEL also informed that the amount of Rs.3,430.67 crore due by Mysore Amalgamated Coffee Estates Limited (MACEL), to various subsidiaries and a joint venture of the company is yet to be recovered. This money will further provide muscles to Coffee Day Enterprises Ltd.

💥CDEL's subsidiary, Coffee Day Global Ltd, owns and operates the popular coffee chain Café Coffee Day (CCD). 

It owns 495 cafes in 158 cities and 285 CCD Value Express kiosks. There are 38,810 vending machines that dispense coffee in corporate workplaces and hotels under the brand. This is a massive company. In the pre-pandemic FY 2019-20, the total number of cafes stood at 1,192.

💥It came up with an IPO of Rs.1,150 crore at an issue price of Rs.316 - 328 per equity share. The IPO opened for subscription on Oct 14 2015. The issue was subscribed 1.64 times.

💥The market cap of Coffee Day Enterprises Ltd is ₹1,067 Cr as of 12 October, 2022. In comparison, its FY21 - 22 income was Rs.6,578.80 million. 

💥In May last year there were media reports that a Tata Group firm, Tata Consumer Products, was in talks to acquire the CCD's coffee vending business, held through a subsidiary Coffee Day Global Ltd (CGDL) at a consideration of at least Rs.1, 000 crores.

💥According to https://munafasutra.com the targets of Coffee Day Enterprises Ltd, for this month are Rs.62.96 and Rs.84.86 on the upside, and Rs.46.54 on the downside.

"The Risk comes from not knowing what you're doing" 

~ Warren Buffet

The current US government's problem is that they don't have Dr.Ben Bernanke to help them deal with the inflation mess they've created over the years by printing too much money and then using a low-interest policy to stimulate growth, particularly during the Covid - 19 period. That Keneysian act was exactly what the doctor ordered. However, the solution that the US Fed has chosen to come out of this is appalling — adding muscle to the USD to minimise Ruble-INR trade is a stupid act by the Joe Biden administration.

Keeping the USD at elevated levels for an extended period of time can cause global trade to take a tectonic shift into an entirely different groove.

========================

Fortunately, cheap Asian imports from countries like China, India, Korea, Vietnam, Bangladesh, and Thailand have historically fueled the US economy and kept it cool. The Joe Biden administration should consider using this weapon of structural change rather than opting for the obvious solution of raising interest rates quickly. ——————————————————-

After leaving this, another risky action was to arm Ukraine (NATO's invisible hand) to counter Russian strength. After that, a number of ineffective sanctions were imposed on Russia. This careless action has indirectly caused panic in Europe, increased shortages, and sparked needless demand pull inflation. It is time for the US Fed to adjust its economic policies to reflect the current constellation of spiralling issues.

===============

An intriguing development occurred on the other side of the world, where Indian FM Nirmala Sitaraman stated recently: "In a world of uncertainties, India is one of the very few standout performers" — a day after the IMF referred to the nation as a bright spot in a world economy that is about to enter a recession.

In the midst of the ongoing annual conference of the World Bank and the IMF, Sitharaman was speaking to the International Monetary Finance Committee.

She said that the National Statistical Organization (NSO) of India has now estimated India's GDP growth for the first quarter of the current fiscal year 2022–23 at 13.50% on an annual basis, the highest among developed nations.

This was accomplished, according to Sitharaman, because of the fact that India began the process of monetary normalisation relatively early: excess liquidity is being absorbed through the Standing Deposit Facility established in April 2022 and interest rate increases beginning in May of this year.

She pointed out that the central government is on a road of consolidation and has budgeted to reduce the GFD-GDP ratio to 6.4% from 6.7% in 2021–2022 and 9.2% in 2020–2021. Additionally, she continued, government spending is now more heavily weighted toward capital expenditure rather than on revenue generation --  establishing the groundwork for medium-term growth. India is therefore in a better economic position than the EU and the US. India had used its shock absorbers in a timely manner and had done its homework admirably.

The US, on the other hand, is yelling "fire!" while ironically aiming its fire hydrant somewhere else (in a different direction).

It is time for the US to reflect on its existing monetary policies and take the necessary steps to ensure that growth and inflation are balanced in a healthy way -- if done effectively, this will provide the world's gasping equity markets with much-needed fresh air.

Keeping USD at Elevated Levels Can't be a Prudent Move

The Indian markets are trading in the red, along most of its Asian counterparts. The BSE Sensex was last seen at 57,401.14 down 265.08 points (-0.39%), while Nifty was last seen at 17,060.50 down 72.60 points (-0.37%).  Photo: India Times

Though Asian markets are down, Dax is seen trading in the Green. The US interest rate hike has spooked the market sentiments and pre - Deepawali mayhem is seen mostly in small and mid cap counters. But this should be the last selling before the Deepawali Rally begins from next week.

The US wants to forcibly bring down Ïnflation by slowing down its Economy.  The minutes from the Fed's September meeting showed that officials remained concerned about inflation and the effect of interest-rate increases.

However, I feel keeping Dollar at Elevated Levels, can't be considered a good economic move. The sovereign republics will trade in their local currencies, whether USD remains strong or weak. Keeping the Dollar index boiling, will increase the import bill of the US, which in turn will push up the prices. 

Hence, I feel this mad exercise of increasing interest rate at high pace to slow down Economy in order to contain inflation is not a prudent move, but a copy book style no - brainer response to target Ïnflation. This will further create supply side issues, as Imports will get costly and new capacity addition will get jolted.

Meanwhile, the Bank of England was in the bond market buying heavily. The Bank of England insists its bond buying program will end Friday, despite calls for an extension.

In another significant development, International Monetary Fund has warmed this week, that Global Central Banks’ moves to quickly raise interest rates is fuelling increased risks to the financial systems of sovereign republics.

The Federal Reserve and other central banks have been raising interest rates at the fastest pace in more than four decades to beat back inflation,  through slowing of economic growth. The risk is that rate increases can cause disruptions in lending, which swelled when rates were low. 

An IMF report said, "Amid high inflation and significant economic uncertainty, global stock and bond markets have been highly volatile, during the last few months, with investors aggressively pulling back from risk taking". 

Fund officials and global policy makers are holding meetings this week in Washington to rivet any solution to the ongoing turmoil. Anyway, when stocks stabilize, pick up good beaten down counters.

=====================================

#Indowind Energy Ltd (Rs.13.25), is scheduled to have a board meeting on 17 October, 2022, when they might take up the Rs.50 Crores Rights issue. Accumulate!!

#Aban Offshore Ltd (Rs.50.20), India's largest offshore drilling company in the private sector, should do well when the crude oil is near $87/barrel. Accumulate, with a price target of Rs.71.

#Accumulate RTN Power Ltd (Rs.4.35), with a SL at Rs.4.20. The company has a steady Business model, through its Amravati plant. The talks of debt recast are going on for its Nashik Plant. The company hopes to become debt free in the next 2 years. When coal prices are reducing, we might see very good quarterly results in the coming days. How can this company with such land holdings and steady Business model, fail? Use your brains, my dear...🙂🙂

#Adani Power Ltd (Rs.348), should also get benefited from the fall in the price of coal in the international market. It is one of the cheapest Adani Group stocks. We can expect it to cross Rs.400, once again this month.

#Suzlon Energy Ltd (Rs.6.85) might again test Rs.6.20. There is a lot of uncertainty regarding it succession issue. I had asked all to exit the counter when it was Trading around Rs.8/9, post Tulsi Tanti's death. 

#Today in Twitter, I had suggested all to exit from Zomato Ltd (Rs.61.50), when it was Trading around Rs.64, due to spiralling up of corporate governance issues. I have doubts regarding its Q1FY23 Result. Exit! The call is closed. You'll not get any update from me in future on this counter.

#Buy the shares of my old favourite, Coffee Day Enterprises Ltd near the CMP of Rs.50.70, T: Rs.72, SL: Rs.47. 

Coffee Day Enterprises Ltd has reduced its consolidated net loss to ₹18 crore in the first quarter (April-June) of the fiscal year 2023. Last year, the company posted a net loss of ₹117.28 crore in the same period. The revenue from operation jumped to ₹210.49 crore as against ₹81.52 crore in the corresponding quarter last fiscal. Restaurant stocks will do well in this festival season.

#The stock of Wockhardt Ltd (Rs.241), should do well due to the aversion of Economic crisis in the UK. Buy with a target of Rs.277.

#With Europe looking a little better once again, you can start accumulating Textile Companies. Buy Nitin Spinners Ltd (Rs.208.95) and Nahar Spinning Mills Ltd (Rs.303).

 Winning Strokes

Yesterday, the BSE Sensex closed at 57,426.92 up 1,016.96 points (+1.80%), while the Nifty closed the day at 17,094.35, up 276.25 points (+1.64%). In the recently concluded meeting, the RBI maintained its full-year inflation forecast at 6.70% but lowered its growth estimates marginally to 7% from 7.20%.

Last week the Nifty managed to get back  above the psychologically vital 17,000 mark as well as its 200-day simple moving average (around 16,990), with crucial support at 16,750. I hope this week Nifty will be able to maintain this level, with occasional bouts of buying and selling. 

#The fall in coal prices will help the power sector stocks. While the power tariffs will remain same, the fall in coal prices would add considerable power to the bottomlines of these companies. Stay put in RTN Power Ltd (Rs.4.35), Reliance Power Ltd (Rs.16.40) and Adani Power Ltd (Rs.373.50).

The market cap of RTN Power Ltd is only Rs.2,336 crores. Moreover, the company has good land bank, which we will see below. 

Amravati Power Plant is spread over 1350 acres of land at MIDC Industrial Area. Nashik Thermal Power Plant in situated near Sinnar, 40 kilometers from Nashik city in Maharashtra, India. 

The plant spreads over an area of 1,040 acres has an installed capacity of 1,350 MW. Sinnar Power Plant has coal linkages from Coal India Limited (CIL) subsidiaries.

RTN Power Ltd hopes to become debt free within a couple of years. Hence, buy and hold the scrip for 2 - years.

Meanwhile, Adani Power Ltd, the India’s largest private thermal power producer’s 100% acquisition of Diligent Power Private and DB Power has been approved by the competition watchdog Competition Commission of India. The company announced to acquire DB Power for Rs.7,017 crore in last August. .

#The textile companies will witness new contracts from this month. The last period was marred by high cotton and crude prices. While the crude oil prices are still near $80 per barrel, the cotton prices have come down considerably in the last few months. 

A Hindu Businessline report of 30 September, 2022 states that, "Rates down over 35% from the peak seen in May as spinning mills expect further fall.

Trade sources estimate the daily market arrivals in the range of 25,000-30,000 bales (170 kg) and prices are seen softening ahead of peak arrivals in mid-October." Remain invested in good cotton scrips. I've already recommended two textile stocks, which are also owned by the ace investor, Dolly Khanna: Nitin Spinners Ltd (Rs.217.80) and Nahar Spinning Mills Ltd (Rs.306.45).

If you want to maximize your returns from the sock market investments, then you can go for my profit sharing mode; wherein the profit will shared in the ratio of 70:30, between you and my business concern 

In such cases you need to compulsorily open a demat account in my associate brokerage house, with a minimum portfolio size of Rs.2 lakhs. The working capital would be invested in delivery based scrips with occasional F&O trading. Hence, the chances of making gains over a period is good. For details kindly send me a mail at: sumonbombay@gmail.com.

#Post monsoon, the construction activities will commence in full pace. Moreover, the fall in the price of Steel and Cement will help the bottomlines of Construction companies. Keep accumulating the shares of Dilip Buildcon Ltd (Rs.220.80) and my old favourite A2Z Infra Engineering Ltd (Rs.10.30). 

Dilip Buildcon last week said it was declared as the lowest bidder for Phase-2 of Ahmedabad Metro Rail project in the state of Gujrat. The company has an order book of ~Rs.25,000 crores.

Dilip Buildcon is a full-service infrastructure company with construction capabilities in roads & bridges, mining, water sanitation, sewage and dams with a presence in over 19 states. The stock would give Multibagger returns from here.

I'll speak with my sources in A2Z Infra Engineering Ltd, this week. The company's June, 2022 quarter numbers were good on Q - o - Q basis. The company also installs Telecom Towers. The 5G Telephony will require lot towers. Accumulate both the shares during market dips.

#Short term traders can do ranlge play in the stock of Swan Energy Ltd (Rs.223.50). This is a huge Company, run by one of Narendra Modi's blue eyed boys.

Nahar Spinning Mills Ltd: Q1FY23 Result update

The company reported total income of Rs.872.6295 crores during the period ended June 30, 2022 as compared to Rs.739.5291 crores during the period ended June 30, 2021. Photo: Mouth shut.com

The company has posted net profit of Rs.72.2524 crores for the period ended June 30, 2022 as against net profit of Rs.100.3351 crores for the period ended June 30, 2021.

The company reported EPS of Rs.20.03 for the period ended June 30, 2022 as compared to Rs.27.81 for the period ended June 30, 2021.

The company posted net profit of Rs.72.2524 crores for the period ended June 30, 2022 as against net profit of Rs.107.2349 crores for the period ended March 31, 2022.

The fall in net profit is due to high price of cotton, which has come down substantially from the peak levels during the last couple of months.

At the current price of Rs.306.65, the valuations of Nahar Spinning Mills Ltd looks attractive. The scrip can be slowly accumulated with a strict SL of Rs.297.

Textile Sector:

#In order to strengthen textile industry standards, the Bureau of Indian Standards (BIS) is developing Quality Control Orders (QCOs) for specific textile products that have a significant impact on consumer health and safety.

#To attract investments in the textile sector, reform infrastructure, and address logistic bottlenecks, the government of India has launched the PLI Scheme, MITRA Parks Scheme, and GATI Shakti Scheme.

#Indian apparel exports reached an all-time high in 2021-2022, with a $ 44.4 billion export turnover, up more than 40% from the previous year. During the same time period, cotton textile exports (including raw cotton) increased by 54%, reaching $16.42 billion. 

By the way, the Indian textile industry could grow to $250 billion in size and achieve $100 billion in exports.

#The Festival's demand will boost textile companies' sales.

==============

Macroeconomics:

India is in a better position as compared to other emerging economies with a decoupled economy coupled with a pickup in credit growth and GST collections. 

However, the rise in geopolitical risk and the economic slowdown may have a lag effect on Indian Economy and is likely to weaken its performance in the short term.

Meanwhile, the outcome of the RBI's monetary policy meeting on September 30th will be closely watched by investors in the coming week. A rate hike of 50 basis points is widely expected to help strengthen the INR. Low oil prices and strong domestic demand may assist the RBI in maintaining the balance between growth and inflation.

In terms of valuation, India currently has one of the world's most expensive stock market. Therefore, the investors are suggested to be extremely choosy (cautious) while going for stock picking.

RTN Power Ltd (Rs.4.50): Quarterly Result Analysis:

On both Standalone and Consolidated basis, RattanIndia Power Ltd came up with good set of numbers. I've already displayed the Consolidated number. Now let's look at the Standalone quarterly Result.

Standalone:

The total income of the company for the June, 2022 quarter came at Rs.923.98 Cr Vs Rs.958.10 Cr in June, 2021 quarter, showing a marginal decline.

The profit before tax (PBT) in Q1FY23 came at Rs.113.95 Cr Vs Rs.87.10 Cr, showing a sharp rise in profit.

The net profit of the company in Q1FY23 is the same as PBT.

The most important part of the June quarter result is that interest outgo has come down to Rs.127.18 Cr as against Rs.154.49 Cr in Q1FY22. The management has said that the company hopes to become debt free within a couple of years.

The EPS of the company improved to Re.0.21 in June quarter Vs Re.16 in Q1FY22.

Also, the net profit margin of the company on Standalone basis shot up to 13.52% Vs 9.96% in June, 2021 quarter.

Now there's another catch: The cost of material consumed is expected to come down further as the coal prices are correcting. This Positive development will show up in the following quarter numbers.

Massive Land Bank:

Moreover, the company has good land bank, which we will see below. 

Nashik Thermal Power Plant in situated near Sinnar, 40 kilometers from Nashik city in Maharashtra, India. 

The plant spreads over an area of 1,040 acres has an installed capacity of 1,350 MW. Sinnar Power Plant has coal linkages from Coal India Limited (CIL) subsidiaries.

Amravati Thermal Power Plant is situated in Nandgaonpeth, 13 kilometers from Amravati city, Maharashtra in India.

Amravati Plant comprises of 5 units of 270 MW, bestin-class, BHEL units with total installed capacity of 1350 MW.

The company has 25 years power purchase agreement with Maharashtra State Electricity Distribution Company Limited (MSEDCL). Amravati Plant had 100% plant availability factor and is currently operating at a plant load factor of 86%.

Amravati Power Plant is spread over 1350 acres of land at MIDC Industrial Area. 

Buy the stock of this power company, which is available at the price of dirt in market declines, with the anticipation of the company becoming debt free within a couple of years. 

 RattanIndia Power Ltd

RTN Power Ltd (Rs.4.60) reported consolidated quarterly numbers for  June 2022 quarter: 

Net Sales were at Rs.842.79 crore in June 2022 down marginally by 3.61% from Rs.874.36 crore in June 2021.

Quarterly Net Loss was at Rs. 389.30 crore in June 2022 Vs Rs. 824.37 crore in June 2021. This is a massive improvement in Bottomline.

EBITDA stood at Rs.298.54 crore in June 2022 up 2.85% from Rs. 290.28 crore in June 2021.

Overall June, 2022 quarter results were good. Buy and keep holding for targets of above Rs.10.

About RTN Power Ltd (Rs.4.60): It is India's one of the major private power generation and utility companies. Two top-tier, massive coal-based thermal power production plants in Maharashtra with a combined capacity of 2700 MW have been put into operation by RTM Power Ltd.

 Winning Strokes

On last Friday, there was mayhem in the Indian bourses. Taking cues from the overall US markets the Sensex closed at 58,840.79, down 1,093.22 points (-1.82%), while the Nifty closed the day at 17,530.85, down a whopping 346.55 points (-1.94%). Photo: YouTube

The US stock market suffered huge losses in the past week on a surprisingly hot CPI inflation report as well as some grim earnings reports or warnings from the corporate world. The major indexes gapped below their 50-day moving averages and undercut some further key levels on Friday. Many leading stocks also struggled.

In such a situation it will be natural to see the Nifty opening Gap Down today and testing 172000 on the downside. The traders are suggested to refrain from any trade at least during the 1st one hour. Later carefully studying the markets they can take limited bets on the either side of the fence.

However, some stocks like D B Realty Ltd (Rs.108.80) may hit another buyer freeze. 

I feel at the moment you need to be long o two sectors:

Construction: The monsoon is going to end in the next couple of months and starting of full fledged Construction activities. 

During the last few years, the budgets have been focused on increasing infrastructure capacity. One critical measure is to accelerate highway construction.

A Business Standard, report of 27 August, 2022 says that road developers have healthy order books, which means consistent revenues for the next three fiscal years. In 2021-22, the NHAI awarded over 12,000 km of road in 127 new projects, a 22% increase year on year (YoY). There were 62 HAM (hybrid annuity model) projects and 63 EPC projects.

Road construction has been quite robust, with an average of 28.6 km per day, being rolled out in 2021-22. But this was slower than the previous year's 36 km per day. Interestingly, the PM Gati Shakti National Master Plan commits to increasing the award to 25,000 km in 2022-23. If this happens, then order book will guarantee revenue until 2025-26.

Moreover, the real estate prices have started to inch up in select metros and Tier - 1 cities. Hence, you need to pick up good Construction Company stocks and keep holding.

Wind Energy: Investors should focus on the renewable energy sector, which has enormous potential in the future as climate change protocols become more shrill.

Wind energy looks promising in the renewable energy basket after the Indian government agreed in principle to halt electronic reverse auctions of wind power projects.

In the renewable energy sector, e-reverse auctions have largely been used to determine the lowest tariff, resulting in historically low bids.

 Winning Strokes

The major indices are down in the 2nd consecutive day. The BSE Sensex was seen trading at 59,979.54 down 402.42 points (-0.61%), while the Nifty was last seen at 17,887.15 down 123.90 points (-0.65%). However, there's bullishness in selective pockets, which will get directly benefited due to ongoing festival season. The prudent investors should buy good stocks at reasonable valuations in this market. Photo: Mint

#I have taken some shares of Trident Ltd at Rs.39.50. Trident is a vertically integrated textile (yarn, bath & bed linen) and paper (wheat straw-based) manufacturer in India. It is one of the largest players in home textile space in India.

The company's consolidated net profit declined 37.5% to Rs.129.35 crore despite of 13.3% rise in net sales to Rs.1,679.90 crore in Q1FY23 Vs Q1FY22.

While there are significant headwinds for the textile sector in the near term, a downward trend in cotton prices, easing of the supply chain, and government measures to combat inflation point to a much better 2HFY23 for the industry.

Despite a poor first quarter, management remains optimistic about the sector's medium to long-term demand as a result of various government initiatives.

The ongoing festival season is expected to increase the sale of company's products.

#My recommended Mawana Sugars Ltd (Rs.94) made a high of Rs.96.45, today. Hold with a SL of Rs.91.

#The shares of the construction Behemoth, Dilip Buildcon Ltd (Rs.242) made an intraday high of Rs.245.25.

The Order Book of Dileep Buildcon Ltd (Rs.241)  as of June 2022, stood at a whopping Rs.25, 160 Cr (~2.8x FY22 revenue), with Rs.61000 Cr worth order inflow (OI) in Q1FY23 (Vs FY23 OI guidance of Rs.8,000-10,000 Cr).

Segment-wise, 47/22.4/16.6/9% of the OB comprises Road & Highways/Mining/Irrigation/Tunnel projects. 

Client-wise, the central/state government orders account for 78/22% the OB. DBL has revised FY23 OI guidance at Rs.10,000 - 12, 000 Cr.o

Government order gives stability of earning to the company.

#My recommended, restaurant stock Zomato Ltd (Rs.64.60) made a high of Rs.64.80. Post lifting of lockdowns, the restaurant and entertainment shares are expected to give superb returns. 

Do you remember my recommendation of Imagicaworld Entertainment Ltd (Rs.33.60)

 at Rs.3.65, during the end of Rs.2020. Check the 52 - week high price, which it made this year....🙂🙂

#The stock of RTN Power Ltd (Rs.5.05) hit another seller freeze today. After a long upmove, this is just a technical adjustment. There is absolutely no problem in this profit making company. 

However, the investigating authorities should find out why the shares of this profit making company is trading below its Face Value in this Bull market, while Anil Ambani controlled Reliance Power Ltd (Rs.21) having a debt of more than Rs.20,000 Cr is trading at such a high price...Who are the operators involved in this counter?

Winning Strokes

The BSE Sensex is now trading at 60,338.39 down 129.51 points (-0.38%), while the Nifty was last seen at 17,998.75 down 39.30 points (-0.39%). The markets are correcting taking cues from the US market, which tanked yesterday, due to higher than expected inflation figures. However, Indian stock markets are on a Bull run and these kinds of opportunities should be used to accumulate good stocks at reasonable valuations.

#My recommended Equitas Small Finance Bank Ltd (Rs.50.70) made a high of Rs.51.20, intraday.

#If you are looking to maximize your returns from the stock market, then you can join my Premium Information Service. 

Moreover, if you are looking for profit sharing arrangements, then it can be done in the ratio of 65:35, for any portfolio above Rs.2 lakhs.

Also, if you trade through my associated Brokerage House, with a minimum portfolio size of Rs.2 lakhs then Premium Information Service is FREE for you.

#The stock of BPL Ltd (Rs.84.05) hit the upper Circuit today. The stock was recommended last week at Rs.72/73. 

#RTN Power Ltd (Rs.5.30) surprisingly hit the lower circuit today, while RattanIndia Enterprise Ltd (Rs.54) is in Green. 

The authorities should look into matter, as to how the shares of a profit making company trade below its face value, even in this Bull 🐂 Market? Which BEAR 🐻 CARTER is involved in Price Manipulation? Without price manipulation, such volume looks like impossibility.

Its earlier name was Indiabulls Power Ltd. Its Amravati plant is profitable while it is in consultation with Banks to recast its ~Rs.7100 Cr of debt of Nashik Plant. Accumulate in all market declines, for targets above Rs.10. The current market price of Rs.5.30 is an impossibility.

#Accumulate the shares of Dilip Buildcon Ltd (Rs.241.40) near the CMP for some superb returns going forward. HDFC Securities has given a target of Rs.359 for the scrip.

#The stock of B F Utilities Ltd (Rs.448.50) made a high of Rs.459.40. If you remember, it was recommended around Rs.337/338. 

#Balu Forge Industries Ltd (Rs.77.80) today made a high of Rs.83.40.  The stock was recommended around Rs.55/57 on Twitter.

#My recommended Central Bank Ltd (Rs.21.05) made a high of Rs.21.40, intraday. The first target of Rs.21 has been achieved.

#My recommended Websol Energy Systems Ltd (Rs.125), made an intraday high of Rs.129.90. The scrip was recommended on last Monday, around Rs.108. 

#The stock of Swan Energy Ltd (Rs.230.85) will test Rs.229/231 ranges.  Profit booking was suggested through my Twitter post. 

Winning Strokes

The BSE Sensex is trading at 60,546.83 up 431.70 points (+0.72%) while the Nifty was

last seen at 18,063.10 up 126.75 points (+0.71%). The Bullish momentum is likely to continue, with occasional bouts of buying and selling.

#The restaurant stocks have started to do well. My recommended Coffee Day Enterprises Ltd (Rs.66.45) hit the Buyer Freeze today. Hold with a SL of Rs.57.

#Another restaurant stock Zomato Ltd today made a high of Rs.66.60. Book some profits and hold the rest with a SL of Rs.62.

#My recently recommended Windlas Biotech Ltd (Rs.258) at Rs.233, made an intraday high of Rs.61.40. Congratulations to all who bought this relatively unknown scrip, just on my call. Book some profit and hold the rest with a SL of Rs.256.

#The scrip of India's largest helicopter company, Global Vectra Helicorp Ltd (Rs.58.70) is also doing fine. Hold with a SL of Rs.56.

#Buy the shares of Sugar companies as the. Commodity is now trading at a 4 - months high. 

According to analysts from JM Financial Institutional Securities, the government of India continues to push the Ethanol Blending Programme (EBP), which is reflected in robust dem seeand from oil marketing companies, equivalent to 10% EBP, and this is expected to increase to 12% in ESY23. It is also reflected in continued capacity expansion (distillery capacity at 8.9 billion litres, according to industry sources).

Meanwhile, Indian Sugar Mills Association (ISMA) has demanded that the government of India allow export of 80 lakh tonnes of sugar in 2022 - 2023 marketing year starting from October.

In another significant development, ISMA President Aditya Jhunjhunwala has said that 45 lakh tonnes of sugar are expected to get diverted to the production of ethanol, as against 34 lakh tonnes in the current year. This means the actual sugar production would be 355 lakh tonnes in 2022 - 2023.

By the way the net sugar production is expected to increase to 400 lakh tonnes against 394 lakh tonnes in the current year.

I have already recommended Simbhaoli Sugars Ltd (Rs.21.60), Bajaj Hindustan Ltd (Rs.11.40) and Mawana Sugars Ltd (Rs.92).

#With the lifting of Covid-19 related restrictions the Construction sector has started to look good. Two of my favorite counters are MBL Infrastructure Ltd (Rs.22) and Dilip Buildcon Ltd (Rs.246.20). The margins of all the construction companies are set to improve due to government of India's efforts on inflation front and also due to availability of labour, post lifting of lockdowns.

In Dilip Buildcon Ltd, both the FIIs and DIIs has good holding. The Promoters held 70.15% stake in the company as of 30-Jun-2022, while FIIs owned 6.35%, DIIs 9.12%. 

The HDFC Securities Ltd has given a one year price target of Rs.369.

#Continue to accumulate the shares of Orient Green Power Ltd (Rs.9.45), after superb June, 2022 quarter numbers. It is a Shriram Group company.

#Continue to accumulate the shares of RTN Power Ltd (Rs.5.50). The stock moves in tandem with Reliance Power. The share should double from the CMP. Today the share of RTN Power Ltd, could hit 🎯 the Upper Circuit.

#If you are confused regarding which scrip to invest or where to put your money in share market, then either you can join my Premium Information Service or allow my business concern to trade in your account in the profit sharing Ratio of 70:30, between you and me. 

Also, if you trade through my associated Brokerage House with a minimum portfolio size of Rs.2 lakhs, you'll get Premium Information Service Free of charge. 

For any information on the available schemes, kindly shoot me a mail at: sumanm2007s@gmail.com or suman2005s@rediffmail.com

#With excellent GST collections, we can look forward for golden days in the BANKING sector. I've already recommended a few stocks: Canara Bank.Ltd (Rs.232), RBL Bank Ltd (Rs.130). Central Bank Ltd (Rs.20.30) and UCO Bank Ltd (Rs.12.45).

Now buy Equitas Small Finance Bank Ltd (Rs.48.30).

Dilip Buildcon Ltd: Buy

CMP: Rs.245.75

India is one of the world's fastest-growing major economies, where construction sector will be a key driver of long-term growth; as millions of Indians migrate to cities in search of high-quality jobs. 

It is expected to grow at an AAGR of  more than 6% during 2023 + 2026.

According to experts, India's urban population will reach 52.50 crores by 2025 and 60 crores by 2036, representing a rapid increase from the current 40 crores, necessitating the construction of massive amounts of new housing and infrastructure. 

Furthermore,  according to a report in the Financial Express, in the second quarter of 2022, India’s construction sector was valued at over Rs.3,300 trillion. This was a substantial increase from the second quarter of 2020, when the value decreased owing to the COVID-19 pandemic. 

The infrastructure sector includes electricity, bridges, dams, highways, and urban infrastructure development. A massive frame can embody the anatomy of India's aspirations. The construction industry, which is one of India's most investment-driven sectors, serves as the spine that keeps it upright.

The government has followed a counter-cyclical policy through the last two years as it has attempted to regain growth momentum after the near collapse during the 2020 lockdown. The Budgets have since focussed on building infrastructure capacity. One key measure is the speeding up of the building of highways.

As a result, there are healthy order books across road developers and this means steady revenues for developers through the next three fiscals. In 2021-22, NHAI awarded over 12,000 km of roads in 127 new projects, an increase of 22 per cent year-on-year (YoY). Of these, 62 projects were under HAM (hybrid annuity model) and 63 were under EPC (engineering, procurement and construction).

Road-building has been quite successful with an average of 28.6 km per day being rolled out in 2021-22, but this was slower than 36 km per day in 2020-21. In 2022-23 there’s a commitment to expand the award to 25,000 km under the PM Gati Shakti National Master Plan. If this comes through, the order book will ensure revenues until 2025-26.

From April 2021 to January 2022, only 6,684 kilometers of national highways were constructed against 9,132 kms a year-ago. The sluggish trend in road construction was due to disruption caused by Covid-19 and prolonged monsoons. A similar trend has also been observed in the contract awarding activities - only 6,000 kms of roads contacts have been awarded between April 2021 to January 2022 compared to 6,696 kms in the same period last year. But the sluggishness in the sector may soon be a thing of the past, with FY22 Budget increasing its focus on infrastructure spends. The allocation to MORTH (Ministry of Road Transport and Highways) has increased by 70 per cent year-on-year or by ₹80,000 crore to ₹1.9 lakh crore.

Allocation to NHAI has moved up two-fold at ₹1.34 lakh crore versus previous year’s budget. The government plans to expand the national highways network by 25,000 kms in FY23.

Post lifting of Covid - 19 related restrictions,, the infrastructure sector has started to perform in its full potential. 

One of the stock in this sector which deserves attention is Dilip Buildcon Ltd (Rs.245.75). The net order book of Dilip Buildcon Ltd as on 30 June 2022 stood at a whopping Rs.25,160.2 crore.

You need to buy and hold. The infra stock hit a 52-week high of Rs.749.30 on October 13, 2021 and a 52-week low of Rs.233.80 on March 29, 2022.

However, Kotak Securities is negative on the stock. Kotak Securities said in its note in May, 2022: "Though the present strong order book gives decent visibility on revenues, legacy orders having lower margins as well as higher working capital will keep performance under pressure".

On the positive side, Kotak Securities said in May, 2022 that in FY22 order inflow was Rs.7800 crores. Analysts said this provides visibility at 2.8x FY22 revenue.

Incidentally, the bad performance of the company in H1FY23E is mostly due to the execution of legacy orders having lower margins. However, margins are expected to improve in the H2FY23E and the work is going on in full swing post lifting of Covid- 19 related lockdowns.