Monday, August 20, 2012
BUY JPINFRA TECH SHARES FOR LONG TERM
Saturday, August 18, 2012
LATEST PORTFOLIO SINCE AUG 2012
In latest portfolio
series I would like to give 25% exposure to HCL INFOSYSTEM based on co’s
Rs.2200 crores order from UADAI. HCL Infosystems
Ltd, is India´s premier hardware, services and ICT systems integration company
offering a wide spectrum of ICT products that includes Computing, Storage,
Networking, Security, Telecom, Imaging and Retail. HCL is a one-stop-shop for
all the ICT. The co is now trading with a
fair P/E ratio of 5 and EPS of 8.The co have reduced their debt considerably
Secondly I recommend JPINFRATECH at
Rs.46. The 165-km Yamuna Expressway is ready for commercial operation,
the company that built the road, Jaypee Infratech, has said.
The
road, built at a cost of Rs 12,839 crores, runs along the Yamuna river,
connecting the industrial town of Noida and Agra. The tolled road is expected
to reduce traffic congestion on the National Highway 2.
According
to the terms of the concession agreement, Jaypee Infratech is entitled to
collect tolls at rates fixed by the Uttar Pradesh Government for 36 years. In
addition, the company will receive 6,175 acres of land across five different
sites at the Government’s cost of acquisition, paying only an annual lease rent
of Rs 41 per acre.
REC and
PFC will gain on importance given in upcoming Five Year Plan and Union budget.
We still lack infrastructure in power and utilities. The guidelines that will b
released soon by RBI on new banking license may benefit for these two power
financing companies
Petronet
is about to commission their cochin terminal by 2013october.This will improve
sales and profitability of company. So I initiate a buy on stock
Cable digitalization
is a huge opportunity for DEN Network...I still initiate a buy call on DEN
around 123
Consumer
discretionary spending in rural and urban cities is a big positive for BAJAJ
FINSERV. Moreover tie up with Berkshire Hathaway is positive for company in
coming future
Redemption
in Strides Arcolab FCCB is a positive for company. Co is looking to sell its
non-core biz entity as a part of debt restructuring is a positive for company
Accelya Kale
Solutions Limited is part of the Accelya Group, a leading solutions provider to
the Airline and Travel industry. Formerly known as Kale Consultants Limited,
the company became part of the Accelya Group in 2011.The revived sentiment in
Indian and global aviation space is a positive for company
Marico is key player
in Indian fmcg market and company have
niche of product and strong presence will lead to further upward
movement in stock price
INVESTING / TRADING IN STOCK MARKETS INVOLVE SUBSTANTIAL RISK ALSO THE VIEWS ON THE WEBSITE ARE VIEWS OF A GROUP OF INDIVIDUALS THUS INVESTORS / TRADERS / VISITORS / CLIENTS ARE REQUIRED TO CONSULT THEIR FINANCIAL ADVISOR BEFORE TAKING ANY ACTION ON BASIS OF ANYTHING WRITTEN ON THIS WEBSITE
VGUARD PLANNING TO SELL LAND IN MUMBAI
The V-Guard group, a south-based power stabilizer maker, has shelved plans to set up two amusement parks with an aggregate investment of up to Rs 1,200 crore because of land acquisition problems.
The company, which operates two amusement parks — ‘Wonderla’ in Bangalore and ‘Veegaland’ in Kochi — was planning a new theme amusement park along the Mumbai-Pune highway with an investment of Rs 150–200 crore and and a major expansion exercise in Kochi, including a convention centre and a hotel, at a cost of Rs 1,000 crore.
The group has dropped its plans of setting up a water theme amusement park near Panvel in Navi Mumbai, following the phenomenal rise of land prices at the proposed site, V-Guard Executive Director Mithun Chittilappally said. "About one-and-a-half years ago, we had acquired over 60 acres at Rs 4-5 lakh per acre at the planned site, but property prices in the area shot up to more than Rs 40 lakh per acre due to special economic zones and the proposed international airport. We require about 150 acres more. But, at the current price, it is unviable to pursue the project in Panvel," he said. Further, some of the adjacent land that the company planned to acquire have come under the proposed Navi Mumbai and Maha Mumbai SEZ projects of the Mukesh Ambani Group.
V-Guard is planning to sell off the acquired property and shift the project to Tamil Nadu, where the state government has assured to offer the necessary support
Chittilapally said Tamil Nadu was preferred for the project because Veegaland and Wonderla enjoy good brand equity in south India. More than 15-20 per cent of the visitors to these two parks are from Tamil Nadu, he added. If the company sells the 60 acres at the prevailing market rate, it will make a profit of around Rs 20 crore.
Sunday, August 12, 2012
HCL Infosystems clinches Rs 2,200-cr UIDAI contract
Information technology (IT) hardware and system integration company HCL Infosystems has bagged the Unique Identification Authority of India (UIDAI)’s managed service provider contract, one of the largest IT outsourcing contracts in the domestic market.
Though the company did not specify the deal size, industry sources say the company had quoted Rs 2,200 crore for the project, outbidding Tata Consultancy Services (TCS), India’s largest IT services company.
“With the award of the MSP (managed service provider) contract to HCL Infosystems, UIDAI looks forward to maximising efficiency and bringing to fruition the goal of providing a unique identification number to every Indian,” said B B Nanawati, deputy director general (technology), UIDAI.
The tendering process for the contract started about two years earlier. Though nine companies, including TCS, Accenture, Mahindra Satyam and Wipro, participated in the process, only two made it to the technical round. HCL Infosystems, which emerged the lowest bidder, was awarded the letter of intent. The company signed the contract on August 7.
As a managed service provider, HCL Infosystems would manage UIDAI’s entire technology infrastructure, including building the central IT data repository for issuing 600 million UID numbers by 2014. The company would also be responsible for procurement and installation of IT infrastructure, implementation of information security management systems and support and maintenance of operations.
The contract also requires a technical helpdesk, support services and database administration.
“As the MSP for the project, we are committed to meeting and delivering our defined scope of work, which broadly covers the implementation and management of UIDAI’s central ID repository. We would like to thank UIDAI for giving us the opportunity to be part of this huge nation-building project,” said A P S Bedi, executive vice-president, HCL Infosystems.
The seven-year contract is expected to boost HCL Infosystems, under pressure in the last couple of quarters because of the decline in revenue from Nokia. The company has an exclusive partnership with Nokia for distributing its handsets in India. The company is also facing challenges in the computer hardware business since the past couple of quarters.
So I recommend to buy HCL INFOSYS at Rs.40 for a long term holding...I still remember that Vakranjee Software also got similar order from UIDAI in 2009..That time scrip was trading Rs.20.Now the scrip is trading at Rs.400...
BUY & FORGET FOR NEXT 3 YEARSThursday, August 9, 2012
Petronet LNG in talks to set up Rs 3,500 cr power plant at Kochi
Petronet LNG Ltd, the nation’s largest natural gas importer, is in talks to set up a Rs 3,500-crore power plant adjacent to its upcoming LNG import facility at Kochi in Kerala.
Petronet has proposed to set up a 1,200 MW gas-fired power plant, 50:50 joint venture with the Kerala government, sources privy to the development said.
Kerala, which faces power shortages, is willing to partner Petronet and the land it will give for setting up of the power plant would be considered as part of its equity contribution in the project.
Also, the state government has shown inclination towards accepting Petronet’s condition of buying at least 75 per cent of the power generated at the power plant under a long-term power purchase agreement or PPA.
Sources said the power generated at the plant, which would use liquefied natural gas (LNG) imported from Australia as fuel, would be priced at less than Rs 7 per unit, much cheaper than Rs 11 per unit the state government is currently buying power from some private generators.
Three units of 350 MW each would be set up in 48 months but operationally it will generate 1,200 MW of electricity.
MoU for the project is likely to be signed between Petronet and the state government shortly, they said, adding a detailed feasibility report would be prepared subsequently.
For Petronet, the power plant would be a blessing in disguise as it would consume most of the high-priced LNG it has contracted from Gorgon project in Australia.
The firm had in 2009 signed a pact to buy 1.5 million tonnes of LNG at a price equivalent to 14.5 per cent of prevailing international oil price.
At $100 per barrel oil price, the LNG will cost $14.5 per million British thermal unit at the time of loading in ships on the Australian ports.
After adding $1.25-1.5 per mmBtu in shipping or transportation cost and 5 per cent import/customs duty, the landed price of gas will be $16.5 per mmBtu.
The prices of the fuel to consumer after adding local transportation, taxes and other charges will cost about $19-20 per mmBtu or more than three times the delivered price domestic gas.
Sources said the 5 million tonne a year Kochi terminal, which was originally scheduled for mechanical completion in second quarter of 2012-13 fiscal, is now being targeted for finishing by the year end to synchronise it with building of pipelines that will take the gas to consumers.
GAIL India Ltd is running behind schedule in laying of pipelines that will connect Kochi import terminal to major power and fertiliser consumers.
BUY MORE AND MORE PETRONET SHARES AT 140-130 RANGE FOR 2-3 YEARS INVESTMENTS
Wednesday, August 8, 2012
Yamuna Expressway is ready, says Jaypee Infra
The 165-km Yamuna Expressway is ready for commercial operation, the company that built the road, Jaypee Infratech, has said.
The road, built at a cost of Rs 12,839 crore, runs along the Yamuna river, connecting the industrial town of Noida and Agra. The tolled road is expected to reduce traffic congestion on the National Highway 2.
According to the terms of the concession agreement, Jaypee Infratech is entitled to collect tolls at rates fixed by the Uttar Pradesh Government for 36 years. In addition, the company will receive 6,175 acres of land across five different sites at the Government’s cost of acquisition, paying only an annual lease rent of Rs 41 per acre.
A research report of Angel Research, issued today, has said it has assumed a toll of Rs 1.5 per km. The report has noted that the commencement of the Yamuna Expressway (YE) is a trigger for the stock.
However, the report observes that the Yamuna Expressway faces competition from the existing highway NH-2, which is currently toll-free. While plans are afoot to make it a six-lane road, after which it will be tolled, the reluctance of commuters to use the Yamuna Expressway could impair its profitability.
Currently JPinfratech is trading at Rs.56..I advice my clients to go long on stock with a 2 year perspective for a target of 160-180
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