Tuesday, January 31, 2012


A captive EPC order and a healthy revenue from infrastructure and residential projects have contributed to a 15 per cent jump in profit after tax for Marg Ltd during the third quarter in the current year as compared with the corresponding quarter in the previous year.

The net profit for the quarter ended December 31, 2011, was Rs 18.40 crore (Rs 15.90 crore). Revenue has jumped 52 per cent to Rs 483 crore (Rs 317 crore).

Marg Swarnabhoomi, the company's SEZ and township project, Marg ProperTies, the residential sales business, and Karaikal Port, the infrastructure business, will be major drivers of growth, said a company press release.

The company EPC order book stands at Rs 3,250 crore with external orders accounting for about 35 per cent.

EPC revenue during the quarter was Rs 465 crore (Rs 300 crore), a jump of about 55 per cent.

Residential projects

In Marg Swarnabhoomi, over 245 residential units have been sold taking the total sales to 1,687 units. A high-rise residential project ‘Four Seasons' was launched during the quarter.

Marg ProperTies sold 98 units and is set to launch a new project during the fourth quarter with a total sales value of Rs 73 crore.

Handling cargo

Karaikal Port, the company's flagship project, handled 1.45 million tonnes of cargo during the third quarter with estimated revenue of Rs 57.9 crore. It has achieved financial closure for Phase 2A extension for Rs 437 crore with four banks. This capacity expansion will add 7 million tonnes a year cargo capacity taking it to 27 million tonnes.




ICICI Bank, India's No. 2 lender, widely beat market estimates in posting its highest ever quarterly net profit, which grew by 20 per cent in December quarter, led by a rise in interest income, fees and lower provisions.

Net profit rose to Rs 1728 crore ($347.4 million) from Rs 1437 crore a year earlier, while net interest income increased 17 per cent to Rs 2710 crore.

Monday, January 30, 2012


RIL Buy Back Key Takes:
RIL announced Rs 10, 440 crore buy back. Buyback would be 12 crore equity shares from the open market at the maximum price of Rs 870.
The buyback offer to commence from 1st of February, 2012 and will close on 19th January, 2013.

Effect on EPS:
Q3FY12 EPS is at Rs 13.6. If Buyback goes through Q3FY12 EPS will look like Rs 14.07. EPS will jump by 3.5% taking into account no growth.

Effect on Promoters Holding:
At present promoters direct holding in the company is 44.71%. After successful buyback promoters holding will increase to 46.4%. Holding will move up by 1.75%.

Cash Position of the company:
Company has cash and cash equivalent position of Rs 74, 539 crore. Also Q3FY12 PBDIT is Rs 9, 002 crore. Reserve and Surplus of the company is more than Rs 1.5 lakh crore.
These data shows that company has comfortable balance sheet to go with the buyback plan.

How does Earlier Buyback plan faired:
Year 2000:
In April 2000, RIL announced the largest buyback programme at a price of Rs 303 per share and set apart Rs 1,100 crore for the purpose. An open market buyback through the stock exchanges was opened by RIL twice between August 2, 2000 and May 18, 2001 and July 2001 and June 2002 aimed at picking up equity shares from the secondary market, whenever it fell below Rs 303.

Though the price fell substantially below Rs 303 several times during this period, the company did not step in to pick up a single share.

The only conclusion one can draw is that the RIL management used the open market buyback only as a psychological prop to keep the shares pegged at a higher level, without any intention of offering a higher exit price to shareholders.

Year 2004:
In December, 2004 RIL announced the buyback at Rs 570. The size of the buyback programme was Rs 3000 crore. One should keep in mind that the buyback was announced in backdrop of RIL share plunging by 12% in November- December 2004.
The buyback was not successful like earlier one. Only Rs 150 crore was utilized for the buyback.

Year 2012:
Now again RIL has come up with buyback with much bigger size of Rs 10, 440 crore. And one thing in common at all these buyback is that stock underperformed the broader market.

Not much upside could be seen in the stock from these levels. RIL stock is expected to hover at Rs 850 levels near its buyback prices as historically observed. Buyback has only given a psychological support to the price and it has worked for the RIL in earlier cases. RIL had not committed to the buyback programme buy yes it worked with the stock getting hooked to the price.
So enjoy another 5-7% upside in the stock.

Sunday, January 29, 2012

BHEL posts 14 % jump in net profit at Rs.3,660 crore

Bharat Heavy Electrical limited (BHEL) on Friday reported a 14 per cent jump in net profit at Rs.3,660.20 crore in the nine months ended December 31, 2011.

The power equipment major had a net profit of Rs.3,213.20 crore in the year-ago period. Sales rose to Rs.29,269.10 crore from Rs.24,756.50 crore in the same period a year ago, the company said in a statement here.

In the December quarter, the net profit rose to Rs.1,432.60 crore from Rs.1,412 crore. Sales stood at Rs.11,078.30 crore as against Rs.10,757.60 crore in the year-ago period.

Interestingly, BHEL has maintained its track record of earning profits uninterruptedly for nearly four decades without a break. Significantly, its turnover has increased by three times and the net profit by four times in the last five years, the statement said. The company's order book position stood at Rs.1,46,500 crore, at the end of the first quarter and it expects to achieve robust growth in 2011-12 and beyond.

BHEL has been pushing ahead with modernisation by way of contemporary technology, state-of-the-art manufacturing facilities and skilled technical manpower to meet the country's power forecast in the future. The company has established the capability to deliver 15,000 MW per annum of equipment and further augmentation to 20,000 MW per annum is under way.

Thursday, January 26, 2012


This are shares I add in my this month series for long term portfolio for this month

INDUSIND BANK(295)=14000 crore Hinduja group promoted lead bank is leading pvt sector bank in India.Now there is some good news for banking sector by cutting CRR from 6 to 5.5 by Rbi last week.Also Private sector lender has reported a net profit of Rs 206 crore in the third quarter of FY12, a growth of 33.8% as compared to Rs 154 crore in the same period last year.Net interest income increased 16% to Rs 421 crore from Rs 363 crore during the same period.Gross non-performing assets (NPAs) declined at 1.02% in the quarter ended December 2011 as against 1.09% in previous quarter. Net NPAs during the same period too slipped at 0.29% versus 0.31%.

IRB INFRA(168)=As the awarding of projects in the road sector gathers steam and sanity returns among players, share prices of companies like IRB Infrastructure Developers have rebounded in the recent past. IRB’s shares.More over privatization in water.The Union government has begun consultations on a new National Water Policy that calls for privatisation of water-delivery services and suggests that water be priced so as to “fully recover” the costs of operation and administration of water-resources projects, documents available with The Hindu show.

SESAGOA(200)=Positive news flow on grounds of cabinet clerance over cairn Vedanta deal.Sesa holds 20% stakes in cairn India.Also results came last week shows 35% drop in profit yoy but good volume pick up in sales seen

M&M(686)=The Indian auto major, Mahindra and Mahindra, all set to re-open the bookings of its new product Mahindra XUV 500 from Wednesday.
The SUV, priced Rs 10.8 to 11.95 lakh (ex-showroom, Delhi), was launched on September 29 and booking began on October 1. The demand has been so high that the company had to suspend booking till January from October 10. It has an order backlog of over 8,000 units.

FORTIS(99)=Indian health care major having global presence in Singapore ,Brenuei, Malaysia and Hongkong is now ready to take over Fortis International.


These stocks are recommended for one month period until Feb expiry
ESCORTS (85)=One can enter Escorts Ltd at Rs.85 as there will be some upward movement in stock price as budget is nearing.Also Escorts Ltd, a maker of critical railway components, said it has inked a licencing and technology pact with a US-based firm 'Honeywell' for technical assistance on railway brake systems.The company has entered into an exclusive licence and technology assistance agreement with Honeywell, a US-based firm, for receiving technology on friction materials for railway application, Escorts said in a statement.

FCH (132)=Private sector NBFC, Future Capital Holdings on Wednesday reported net profit of Rs 28.91 crore in the third quarter of current financial year on the back of higher net interest income and rise in fee income.Net profit of the company stood at Rs 10 crore in the same period last year

RELIANCE(790)=Reliance is planning to buy back shares worth Rs.10440 upto 870.So this is a big positive for co and RIL is sitting with a huge surplus cash which can be used for other takeovers also

PANTALOON(175)=Recommending buying Pantaloon for this week also as of much anticipation seen in budget regarding fdi in retail sector

CAREER POINT(270)=One can enter this education stock as I expect some movement due to favourable market condition and pre budget rally

Monday, January 23, 2012


Hello followers,
I am happy to share my joy of rising the share price of Den network and Hathway cables.I have accumulated den at 50 rate for my clients and now rate is about 83 which is exactly 665 returns in single month.Also accumulated Hathway cables at 110 range now it is trading at 140 levels which means 28% retuns.


A committee on rail modernisation chaired by advisor to the Prime Minister, Sam Pitroda has given the recommendation of linking all Railway fares to inflation and go for one time hike of 25 percent.

As per the reports of a news paper, the move aims to breathe a new leash life to the ailing Indian Railways and raise around Rs 60,000 crore by next year.

Meeting ahead of the crucial Railway Budget of 2012-13, the committee has recommended that the raised fund of Rs 60,000 crore could be used to part-fund a modernisation programme of Rs 9,13000 crore spreading over next 5 years .

In its presentation to the Planning Commission, the Pitroda chaired panel has mentioned that a 25 percent hike in the passenger fares can fetch around Rs 37,500 crore.

Meanwhile, linking all kind of Railway fares including the freight charges to that of the inflation can fetch Rs 25,000 crore.
So I expect railways can give more order for these companies.So i initiate a buy on kalindee,kernex,timken and beml for short term period


IVRCL Ltd today announced on the Bombay Stock Exchange (BSE) that it had received an order worth Rs 701.49 crore in the southern parts of India.

According to the release, the orders bagged are in the water irrigation division which is worth Rs 595.45 crore awarded by the Tamil Nadu Water Supply and Drainage Board and from a Karnataka government undertaking to an IVRCL joint venture.

Another order has been received from the Bihar Urban Infrastructure Development Corporation Ltd in the same division.

IVRCL also received orders from the buildings division worth Rs 106.04 crore from National Buildings Construction Corporation Ltd and Hindustan Dorr-Oliver Ltd, Mumbai for a project in Karnataka. It also received an order in Hyderabad, Andhra Pradesh.

Water Policy draft favours privatisation of services

The Union government has begun consultations on a new National Water Policy that calls for privatisation of water-delivery services and suggests that water be priced so as to “fully recover” the costs of operation and administration of water-resources projects, documents available with The Hindu show.

Recently circulated to water experts for consultations, the 15-page draft National Water Policy suggests that the government withdraw from its role as a service provider in the water sector. Instead, it says, communities and the private sector should be encouraged to play this role. The proposals could mean sharp rises in the cost of water for both rural and urban users — an outcome the policy suggests will help curtail misuse of a precious but scarce resource.

The draft policy calls for the abolition of all forms of water subsidies to the agricultural and domestic sectors, but says “subsidies and incentives” should be provided to private industry for recycling and reusing treated effluents. It also proposes that subsidy to agricultural electricity users be curtailed, saying it leads to a “wasteful use of both electricity and water.”

Similar World Bank proposals

In 2005, a World Bank paper made similar recommendations, arguing that “if India is to have sustainable economic growth, the role of the Indian water state must change from that of builder and controller to creator of an enabling environment, and facilitator of the actions of water users large and small.” The paper called for, among other things, “stimulating competition in and for the market for irrigation and water and sanitation services”.

The draft policy calls upon the government to ensure access to a minimum quantity of potable water for essential health and hygiene to all citizens, available within easy reach of the household. Significantly though, it does not suggest that these be turned into enforceable rights through new laws.

For expeditious resolution of inter-State disputes, the draft policy suggests the establishment of a permanent tribunal at the Centre.

In a major departure from the past, the policy also suggests that people displaced by large water projects should be made partners in progress and given a share in the benefits comparable to the project-benefited families. In fact, the policy suggests that the cost of rehabilitation and compensation to the project affected families be “partly” borne by the project-benefited families through “adequate pricing of water.”

So I recommend buy call on JAIN IRRIGATION at 100 rate and ILFS ENGG at 70 rate and IVRCL infra at 44 range

Sunday, January 22, 2012


Kalindee Rail Nirman (Engineers) Limited, popularly known as "KALINDEE" today stand as Premier and Trusted agency in execution of Railway Track, Signaling & Telecommunication projects on turn key basis. It has rich and varied experience of more than three decades. It has earned a good reputation by sustained good performance in quality, accuracy and on- schedule compliance with utmost dedication, sincerity, and cooperation. There is vast scope for expansion of Kalindee’s business in building Railway Transport infrastructure for urban, passenger and freight traffic in line with the Government Of India’s huge investments for rapid development in these areas.
Kalindee have projects are from Maharashtra State Power Generation Co for a plant in Nagpur that is about Rs 51 crore, then we have got project from South-Eastern Railway for a new track line and that is about Rs 32 crore. We have also got a deal from Jaipur Metro and some order from DMRC etc. So, total project value as of today on company's hand is about Rs 650 crore.
We can buy kalindee at 110 rate for a short term target of 130-140 in 2 months time frame

Wednesday, January 18, 2012


My favourite pick from mid cap healthcare sector Apollo hospital is doing good in past one quarter.Investors with 2 year waiting period can buy it at 650 levels. Apollo Hospitals is in talks with Parkway Holdings, a Singapore-based hospital operator, on a prospective tie-up to expand in the Indian sub-continent, Middle East and Africa, Apollo Group Chairman Pratap Reddy said here today.

"We are now talking to them (Parkway) on what is the final plan," Reddy told reporters on the sidelines of the 2nd Annual Conference of Global physicians of Indian Origins (GAPIO).

Tuesday, January 17, 2012


The Ruias-controlled Essar Oil, which runs the country’s second-biggest single location crude oil refinery at Vadinar in Gujarat, will have to shell out Rs6,309 crore as sales tax to the Gujarat government.

Dealing a blow to the company’s balance sheet for the coming year, the Supreme Court on Tuesday set aside a Gujarat High Court order wherein the latter had asked the state government to consider Essar Oil’s request to grant it the sales tax incentive.

According to a release from Essar Oil: “The Supreme Court has upheld the stand of the state government as a result of which Essar is not entitled to the deferment scheme. It needs to be clarified that the scheme was not for sales tax exemption in toto, but was only for a deferment of payment of sales tax. In view of the judgment, the payment of tax which was to be made in deferred instalments, may face some changes in the timeline.”

So I recommend to avoid essar oil from buying as this may impact the balance sheet of essar heavily.Lets wait for further clarity from essar oil management

Under a special state government scheme - the Capital Investment Incentive to Premier/Prestigious Unit Scheme, 1995-2000 - Essar Oil was eligible for a tax deferment incentive of up to Rs9,100 crore for 17 years, provided the company would start commercial production from its proposed unit within a specified timeframe.

Essar Oil, which was building a 9-million tonne per annum crude oil refinery at Vadinar in Gujarat, was supposed to complete it by April 2003. However, the company failed to start work as a crippling cyclone hit the refinery site in 1998 and later, a pending case involving an NGO held up its construction.

Though the company restarted the project in 2004 and completed the process by November 2006 after resolving all the irritants, the state refused to consider it under the eligible parties for the sales tax deferment facility.

With the Supreme Court ruling going in state’s favour, Essar Oil will have to cough up the entire amount it enjoyed as benefits of sales tax deferment so far, which according to an Essar Oil release is Rs6,309 crore.

While this is just the tip of the iceberg, analysts say the judgment can actually open up a Pandora’s box for Essar Oil as the company is in the midst of a corporate debt restructuring (CDR). In fact, the current SC judgment can go against the conditions laid down by the company’s lenders during the restructuring exercise.

The Draft Red Herring Prospectus (DRHP) filed by Essar Energy during its listing read: “It is a condition of Essar Oil’s Master Restructuring Agreement (MRA) that Essar Oil obtains the benefits of the sales tax deferral.”

It further said: “In the event Essar Oil is unable to receive further extensions from the CDR lenders or the ongoing sales tax incentive litigation, this may be considered to be an event of default under the MRA. The CDR lenders will then have an option to demand payment of all outstanding amounts or convert such outstanding amounts into shares of Essar Oil.”

Sunday, January 15, 2012


The Whole Sale Price Index (WPI) for the month of December was at 7.47 per cent versus 9.11 per cent in November.

Food inflation stayed in the negative for the second week running despite a slight uptick in prices because of the high statistical base of the last year.

A sharp drop in inflation will allow the Reserve Bank of India to start monetary easing. Inflation in food articles was -2.9% for the week ended December 31, data on Thursday showed. It stood at -3.36% during the previous week and 19.1% in the corresponding week last year.

Wednesday, January 11, 2012

Infosys Q3 net up 33 pct, cuts FY12 forecast

INFOSYS Ltd beat market forecasts with a 33 percent rise in quarterly profit as a weak rupee boosted margins, but it cut its full-year revenue outlook because of the debt crisis in Europe, its second-biggest market.

India's export-driven software services companies are bracing for a slower pace of outsourcing contracts due to the lingering debt crisis in Europe.

Bangalore-based Infosys, India's second-largest software services exporter, forecast dollar revenue growth of 16.4 percent for the fiscal year to March 31, down from 17.1 percent to 19.1 percent projected in October.

"The global economy, driven by slower growth in developed markets coupled with the European crisis, could impact the growth of the IT industry," Infosys Chief Executive S. D. Shibulal said in a statement.

India's $76 billion IT services industry competes with Accenture Plc and IBM for orders to maintain information technology infrastructure and build software applications.

More than half of Infosys's revenue is generated from the United States.

Global spending on information technology will rise at the slowest pace in three years in 2012 as Europeans, worried about the region's sovereign debt crisis, are cutting back on investments, research firm Gartner Inc said last week.

Gartner predicted global IT spending would rise 3.7 percent in 2012, down from its earlier estimate of 4.6 percent. The forecast for Western Europe was slashed to a 0.7 percent drop in spending from a previously expected rise of 3.4 percent.

Infosys which is also listed in New York, said consolidated net profit rose to 23.72 billion rupees in the third quarter ended December 31 from 17.8 billion rupees a year earlier, helped by an 8 percent fall in the rupee.

Revenue rose 30.8 percent to 92.98 billion rupees, as the company, whose customers include BP Plc , Procter & Gamble Co and Volkswagen AG , added 49 clients.

A Reuters poll of 10 brokerages had forecast a profit of 23.1 billion rupees on revenue of 92.2 billion rupees.

The rupee was the worst performer among Asian currencies in 2011, losing nearly 16 percent against the dollar.

Tuesday, January 10, 2012



1)KALINDEE RAIL NIRMAN=110 Expecting a good order from Indian railways in this rail budget. Also company have decent track record in rail biz exposures. We can sell the share at 160-170 range in February Last week. In last rail budget Kalindee went up to 201 level

2)KERNEX=78 rate. Same reason as above .Also kernex is working in signal system and electrification sector in railway. Have global presence in Egypt and other middle east nations. The stock hit a 52 week low of Rs.54 and high of Rs.170

3)EDUCOMP= 220 This stock is another budget pack stock related to education sector.Educomp is one of the largest education co in India. The stock hit a 52 week low of Rs.168 and high of Rs.528.The main reason is stocks attractive rate and good biz going forward. I expect a target around 350-400 level

4)PANTALOON= 150 The Kishore Biyani led Big Bazaar co. Now hot picks for traders and investors due to FDI allowing in retail sector. Once assembly elections in 5 states is over UPA govt will again take this matter to consideration. The stock hit a 52 low week Rs.126 high Rs.370. So we can sell shares at 250 or even more in next 2-3 month tenure


1)CAIRN INDIA =320 World’s fastest growing oil exploration company. Vedanta resources bought shares of cairn at RS.405/share. Cairn contribute to India’s 1/5 of oil demand. Good share to buy for long term

2)TATA STEEL=350 India’s global steel player from Tata group.Now available at p/e ration of just 4. Strategic take over of chorus group last year will give tat steel a global exposure especially in Europe. Stock will go up once recession trend over Europe goes

3)JP ASSOCIATES=55 India’s largest third manufacture of cement. Also have exposures to SEZ and reality.JP ASSO I one of the fastest growing Indian company

4)PFIZER= 1100 An USFDA approved American drug major who have global presence have niche products in their portfolio .The rising middle class income in Indian family is good for hospitality and healthcare companies as they demand good treatments

5)FORTIS HEALTCARE= 100 It is the second largest hospital network in Asia after Apollo Hospital. Malvinder singh,the promoter of global drug major Ranbaxy, is the promoter and chairman of Fortis Healthcare .It is a cash rich company having biz in brunei,hong kong, China, Malaysia and Singapore.