REPORT ON KALINDEE

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

MY EVER TIME FAV APOLLO HOSPITAL ROCKING

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).

6300 CRORE TAX LIABILITY FOR ESSAR OIL

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.”

INFLATION AT TWO YEAR LOW.

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.

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.

SHARES FOR A MODEL PORTFOLIO

SHORT TERM REASON

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

LONG TERM INVESTMENT RATIONALE

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.