After Market Opening Chart Check

The markets yesterday as witnessed the rally for second day. Although, Nifty went down to 5770 during intraday correction, sustained buying pulled it up to 5855, finally giving a close at 5850 with a gain of 50 points.
Market has bounced back strongly from the support of 5700. The initial downside target of 5680 was achieved. Today, the Nifty_Spot is still trading above the level of 5810, which does not negate this upmove. MACD and Mass Index are in buy mode and oscillators are still in the oversold territories. Therefore, the rally is expected to continue albeit with some intra-day, corrections or bouts of profit booking. This rally is expected to take Nifty back to 5900-5950 once again.
Resistance: 5870 / 5900 (Nifty_Spot)
Support: 5810 / 5790 (Nifty_Spot)
The US markets ended up on Monday ahead of the two-day meet of the US Federal Open Market Committee, which will begin today. US Fed will give the time frame on withdrawal of its bond buying programme.
Most Asian indices were choppy ahead of the meet, but is slowly recovering from the blues.
Meanwhile, the RBI left the key policy rates unchanged citing inflation concerns on the backdrop of weakening INR. Not surprisingly post the policy announcement, the Nifty-50 Index actually went up to finally end with a gain of 0.72% or 41.65 points at 5850.05, confirming that the policy outcome was more than discounted into the prices. Later on, the weak trade data also failed to dent the sentiments. The May-13 trade deficit stood at $20.1bn vs $18.9bn last year on high gold, silver imports ($8.3bn vs $ 4.4bn). It will be interesting to see the June-13 data, which may be slightly better post the steps taken to curb gold imports.
Fundamentally speaking, today, Indices are trading flat amidst mixed cues from overseas markets and would continue to do so, in absence of any major trigger. The outcome of US FOMC meet is expected to provide further cues on the near term movement of the market.
Stocks to watch for today’s trade:
•(+VE) TELECOM: India's telecom regulator on Monday cut roaming tariffs, but shied away from allowing free national roaming services in a move that gives a breather to a bleeding telecom industry in the world's second largest telecom market.
•(+VE) GMR INFRASTRUCTURE: The anti-corruption commission of Maldives has said there was no corruption involved in leasing of Ibrahim Nasir International Airport to thecompany. CMP: Rs.19.85.
•(+VE) STERLITE INDUSTRIES: The company's copper smelter unit, which was shut for two months, resumed operations on Monday after the National Green Tribunal's expert panel gave a green signal. CMP: Rs.81.85.
Southern Online Bio Tech Ltd was given a buy at Rs.2.40, some months back (probably 4-5 months). The scrip today hit the upper circuits at Rs.9.56. You can calculate the return over, such a short term. Therefore, equity markets do give returns to patient investors, over a period. 
Glodyne Tech Ltd could hit the Buyer Freeze today at Rs.9.97.  The company's overseas operations have started to do well and a weak rupee might help them in a large way in terms of overseas revenues.

Central Bank: The Chart Turns Bullish

Central Bank was asked to be accumulated last week. After that the scrip has steadily appreciated on the back of good Q4FY13 numbers and other developments. Recently, NTPC signed term loan agreement with Central Bank for Rs.490 Cr. Central Bank of India also recently Renewed the CBS agreement with Tata Consultancy Services. The scrip in all probability will reach Rs.71-72, in the next few trading sessions, if the general trend of the market remains positive. CLICK HERE.

Central Bank: The Chart Turns Bullish

Central Bank was asked to be accumulated last week. After that the scrip has steadily appreciated on the back of good Q4FY13 numbers and other developments. Recently, NTPC signed term loan agreement with Central Bank for Rs.490 Cr. Central Bank of India also recently Renewed the CBS agreement with Tata Consultancy Services. The scrip in all probability will reach Rs.71-72, in the next few trading sessions, if the general trend of the market remains positive. CLICK HERE.

HDIL: Bullish pattern is slowly building up

Today inspite of the RBI not coming up with either a Repo rate cut or a CRR cut, the scrip closed near its day's high. This indicates that there is interest in the scrip, from the punters to make quick bucks. This scrip  has already fallen from Rs.120 plus to the current level. Hence, it should be accumulated, because we are now gradually approaching towards the results of the June, 2013 quarter. Hence, the effect of the March, 2013 quarter results are expected to be over soon. CMP: Rs.37 .75.

ARSS Infrastructure Ltd: Building Foundations for Future Upmoves

The Company's debt is under CDR which was approved on 19/07/12 by the CDR empowered Group (CDREG) and was implemented on 06/09/2012. In terms of the guidelines issued by the CDREG the company has issued Compulsory Convertible Preference Shares to the Promoters and their associates to the tune of Rs.15 Cr on preferential allotment basis. 

Would you believe that, if I say in 2010, Reliance Money gave a buy target of Rs.1444 for ARSS Infrastructure Ltd. CLICK HERE. CMP: Rs.23.70.

IVRCL Ltd: Patterns are being formed

The scrip of IVRCL Ltd was recommended earlier also around Rs.15.50, for a target of Rs.19-21, as the infrastructure sector is expected to gather steam in the coming days, following a CRR cut by the RBI. 

Also, the banks will now slowly start thinking of passing on the earlier repo rate cuts by the RBI, to the corporate world. The scrip of IVRCL Ltd is still in a buy mode. 

The Indian infrastructure sector continued to languish in FY13 due to poor macroeconomic forces, policy gridlock and political instability. Delays in land acquisition and environmental clearances and poor enforcement of contracts. However, the input costs have started to come down due to fall in inflation. Also, some areas are showing some developments: the telecom sector saw the emergence of the National Telecom Policy, a cohesive document covering a broad range of communication services. In both civil aviation and power sectors, the Government of India has approved foreign investment of 49 per cent, bringing relief to the heavily leveraged public and private companies
progress. The 12th Five-Year Plan projects the total investment in infrastructure during the period to be Rs.51.46 trillion, with 47 per cent contributed by private participation and 53 per cent by the central and state governments. 

In the Union Budget FY14, the FM, P Chidambaram, spoke of encouraging Infrastructure Debt Funds (IDF) so as to mobilize funds to meet the XIIth Plan $1 trillion infrastructure investment target. Through take-out financing, credit enhancement etc, IDFs will provide long term, low cost financing for infra projects. India Infrastructure Finance Company Ltd ( IIFL) in partner with Asian Development Bank (ADB) was set to provide credit enhancement to infrastructure companies wanting access to bond market to tap long term funds. Since the policy paralysis, has come down a bit and FM talking of giving stress on infrastructure, this sector has started to look attractive. CMP: Rs.16.15.

Inflation falls to 4.7% in May vs 4.89% in April

The WPI-based inflation fell to 4.7 per cent in May, driven mainly by softening prices of manufactured items, even as prices of food articles inched up.

Inflation based on the Wholesale Price Index (WPI) stood at 4.89 per cent in April. In May, 2012, it was 7.55 per cent.

As per official data released on Friday, WPI inflation in the manufactured items category declined to 3.11 per cent in May from 3.41 per cent in April.

The non-food articles category, which include fibre, oil seeds and minerals, saw sharp decline in inflation to 4.88 per cent, from 7.59 per cent in April.

However, inflation in food articles category, which has a 14.34 per cent share in the WPI basket, rose to 8.25 per cent in May. Inflation in this category was at 6.08 per cent in April.

The rise in food inflation was on account of increase in prices of onions, vegetables, cereals and protein-based items.

Inflation in vegetables stood at 4.85 per cent in May, against (-)9.05 per cent in the previous month.

The rate of price rise in onion was high at 97.40 per cent for the month, as against inflation rate of 91.69 per cent in April.

Inflation for March was revised downwards to 5.65 per cent from 5.96 per cent as per provisional estimates.

The inflation data would be closely watched by the Reserve Bank while formulating its mid-quarter policy which is scheduled on Monday.

There have been demands for a lower interest rate in the backdrop of declining inflation.

Finance Ministry sources, commenting on inflation numbers, said they would want lower interest rates and monetary policy transmission.

Courtesy: Business Today

After Market Opening Chart Check

Yesterday, in In line with expectation, weakness persisted though  the level of 5730-5760 provided support. A gap down opening is seen today in the morning amid weak global markets. Market has given a breakdown below 5870 after moving between 5980 and 5870 for four trading sessions. Long positions theoretically should hnce, be avoided, u nless some conditions are fulfilled. Now, from the trading pattern of morning, it seems that the level of 5720-5740 is likely to hold out at the end of the day, as the area provides strong support; though presently it is broken intra-day.

In case of Nifty_Future traders for Thursday, June 13, 2013, the trend deciding point works out at 5736, which is broken for the moment on the downside. The the third weekly support stands at 5714 mark. Hence any fall towards the band of 5736-5714 should ideally have been used as a buying opportunity with a stop loss of thirty to forty points below this level (SL still not broken).  But unfortunately this level has been broken intraday/ Therefore, The Nifty_Future Traders can only think of buying, if and only if, the Nifty_Futures moves above 5714 intra-day. Till then long positions are strict no no. Nifty_Spot is now at 5694. On the ascent, the first resistance will emerge at 5826 mark. If there is sustained buying at this level, then Nifty is expected to move towards 5872 mark.  The Correction seems to be coming to an end, a tempory bottom can be expected by today's closing trade.

Resistance: 5740 / 5795 (Nifty_Spot)

Support: 5692 / 5650 (NIfty_Spot)

Asian market’s key indices declined today in the morning tracking the fall in US, EU markets last day as investors are worried about the possibility of central banks across the globe cutting back on stimulus measures.

The IIP data for Apr-13 came as a negative surprise, which was reported as 2%, lower than against the estimates of 3%, dragged down by consumer durables growth. However, the upward revision of the Mar-13 provisional data to 3.4% (vs earlier fig of 2.5%) provided some relief. The combined CPI data for May-13 came at 9.31%, though marginally lower than previous figure, it was higher than estimates. The widely tracked WPI Inflation data for May-13 is due on Friday. The Fitch upgraded of India’s outlook to Stable from Negative, while affirming the rating at BBB-. However, this is unlikely to provide any major relief to the market amid global uncertainties. The World Bank has cut its 2013 global economy growth to 2.2% vs 2.4% seen in Jan-13.

Fundamentally speaking, today, the domestic market Indices are seen trading with a negative bias, though the correction seems to be overdone, as the FMO is likely to announce a slew of measures to stem the fall of the INR Vs USD.

Today's call buy IVRCL Ltd at Rs.15.70, T--Rs.19, SL--Rs.15 (exit). After such scintillating results, this sort of break down, is overdone and the scrip should recover. The govt may soon allow PSU infrastructure lending companies to issue overseas bonds for raising capital for long-term infrastructure financing. This is expected to help many of cash strapped companies in this sector, like IVRCL Ltd (Rs.15.60), HCC Ltd (Rs.11.19), NCC Ltd (Rs.28.70) etc.

Twist to Cybercity dispute

Kochi: In a twist to the Cybercity controversy, a top official of the Housing Development and Infrastructure Limited (HDIL) on Thursday clarified that there was no move to sell the land intended for the mega IT project.

“We sought joint promoters for the project. There is no outright sale of the land intended,” K.V. John, the project manager of Cybercity told a private TV channel.

The 70 acres of HMT land at Kalamassery was bought by Blue Star Realtors Private Limited, a subsidiary of HDIL, which proposed to invest around Rs2,300 crore to set up a state-of-the-art IT park in 2008.

But an advertisement in newspapers recently said that company was putting up the land for sale. The clarification by the top official, in Mumbai, added to the controversy as officials in Kochi refused to confirm it.

Meanwhile, Opposition Leader V.S. Achuthanandan threatened to move the court if the company went ahead with the sale plan. “It amounted to cheating the people,” he told media persons in Aluva.

It may be recalled that a section in the CPM, supporting the then chief minister Achuthanandan, had expressed displeasure over the allotment of HMT land for the project which promised to create 60,000 jobs.

Courtesy: The Asian Age

Glodyne Technoserve Ltd: Annual Report of FY12

IVRCL Ltd: Huge Returns Expected

CMP: Rs.18.45

S Ramachandran,
Director of IVRCL Ltd

Infra player IVRCL currently has an order book of Rs.26,000 crore. However, of the total, orders worth Rs.18,000-20,000 crore are executable, Business Development & Corp Strategy S Ramachandran, Director told CNBC-TV18.

The company has been performing well in segments like buildings, irrigation but orders from the transmission line segment are at nascent stage, he informed. Ramachandran is hopeful that the company will perform well in FY14.

Further, the company is looking at reducing Rs.1,000 crore debt via stake sale in special purpose vehicles (SPVs) this year, he added.

Below is the verbatim transcript of his interview on CNBC-TV18

Q: Could you just walk us through how FY14 is looking in terms of order book visibility and which big projects do you think will come on board and show through for the course of FY14?

A: We have an order book of about Rs 26,000 crore but out of them few of them are non starters for various reasons. So, effectively we can say anywhere between Rs 18,000 crore to Rs 20,000 crore is the order book which can be implemented now.

As far as FY14 goes, it should be a much better year because we have done a little bit of reworking in terms of our overheads and people cost, lot of unwanted stuff has also been removed. I would say that, we definitely would have an upside from here.

In terms of the sectors, buildings’ are doing quite well. We have a fairly good order load of about Rs 4,500 crore on buildings. Irrigation and water is also pretty strong. We have moved to different states such as Madhya Pradesh, Chhattisgarh and now something is coming up in Orrisa, and Gujarat was always there. In terms of transmission lines still remains at a nascent stage and last is our highway sector.

Our turnover would come from basically these four sectors and in addition we do have some orders from railways. So, things are looking up for FY14. The only constrain here that is actually for all of us infrastructure companies is financing. We did have problems, I presume it is with everybody and this is the time we expect the bankers to come forward and hold us or at least support us, which even what the finance minister has been telling the bankers that you must treat them differently and should not be fair-weather friends. All these years we have been giving them fairly good amount of business but when we are in a little bit of trouble they should support us. Some of them are supporting, I guess the others also will come forward.
Q: The analyst community has gotten quite positive on your company ever since you made clear your intent to exit some of your assets and reduce your debt can you give us a definitive guideline of how much you plan to reduce your debt by from this current Rs 3,000 crore figure that you are sitting at. What are the tools that you guys will use in this calendar year itself either in the form of unlocking value in your special purpose vehicles (SPVs) or any other asset sales?
A: It has to be the SPVs only. After having signed this definitive agreement with Tata Realty for the three roads, some others are also seriously looking at some of our roads, which are under construction like in Indore-Jabhuva, Phaltan-Baramati, Chandrapur, these are all under construction. Some of them can go on stream anywhere between six to nine months from now.

In addition, we also have the Chennai desalination plant which is doing very well this whole year. It has been hitting over 95 percent capacity. Things have really fallen for good for us and it is all going to be trying to divest. Now, that the government has also formed three member committee consisting of finance minister, planning commissioner, and the minister of highways, there is some news about them recommending divestment of our equity immediately after financial closure. We need it to be able to sustain ourselves. In that process all the SPV debts will come out.

I would be happy if we can get another Rs 1,000 crore out of the SPV off, and maybe pare about Rs 300 crore of IVRCL debt during the year. We are working in that direction, it is not very easy but we are hopeful now this year we should be better off.

Q: What is the experience been with regards to road projects, it is less competitive or is it still quite cut throat in terms of bidding and are margins still quite low for some of these projects?

A: On the concession front there are hardly any bidders. Very few roads have actually been bid out or people have come forward with any offer. The concession needs to be revised in the sense that there is no control over escalation which is a big disaster. If this is how the rupee is going to go up, this is how the crude oil prices are going to go up, automatically it will reflect on diesel and petrol etc and that in turn will reflect on transportation cost, cement, steel etc.

It is very difficult for anybody to factor in such an unpredictable and very-very high rate of escalation. There is a talk also going on to see how some elements of this escalation can be factored in new concession. Unless the concession is modified and made more fair to both the concessionaire as well as the government, things are going to be non starters for some time to come.

Q: Just to throw some more light on the cost overruns that IVRCL is seeing this quarter you did see some improvement in your margins to about 9 percent or so, but the fear is that your cost overruns will prevent margins from improving further going ahead. What would your sustainable trajectory be in terms of margins in FY14?
A: In additions to cost overruns, we also have a threshold overhead. Essentially, in any infrastructure project unless the top-line improves drastically it is not able to sustain the threshold overheads which are there. It has to do with cost of finance because the interest rates are very high, it has to do with people cost, and all costs of administration. So, the magic only lies in increasing the turnover so that the overheads can be absorbed.

To that extent we have taken some definitive action to see how we can reduce our overhead costs in all ways but what is most crucial is to be able to work on our receivables. Typically, when we closed the project the final bill hangs on - that money is due, retention money hangs on - that money is due. Then there are bank guarantees and bank guarantees is as good as money. So, unless we have improvements in these directions, they are definitely going to bite into our margins. At the gross level we would still be anywhere between 9 to 11 percent.

Courtesy: www.moneycontrol.com

HDIL says it will not exit Cybercity project in Koch

[Editor: You can go Full Hog in IT (Information Technology) counters, as the INR is going to oscillate between Rs.54-57, against the USD for some more time. Indian Rupee (INR) is also expected to depreciate against the Euro.  However, try only those IT companies who have large overseas business; but NOT likes of Rolta Ltd or Tera Software Ltd]

The Housing Development and Infrastructure Limited (HDIL) claimed on Thursday that it was not exiting the Cybercity project in Kalamassery despite the company putting out an advertisement on Wednesday for either a joint venture partner or for outright sale of the 70 acres it bought from Hindustan Machine Tools, Bangalore, in 2006.

CEO for the Cybercity project, K.V. John, told The Hindu from Mumbai that there appeared to be some confusion over the advertisement and that HDIL was not exiting the project as had been made out in the media.

He said that HDIL is ready with the master plan for the project and is on the lookout for a joint venture partner get going. He did not explain why the project, work on which was to start in February 2011, had not taken off so far.

A spokesman for HDIL in Mumbai reiterated that company was looking for a joint venture partner as its first option. Hariprakash Pandey, vice-president, investor relations and finance, told The Hindu from Mumbai that HDIL’s first option was to find a joint venture partner. Bu if a company wanted to partner HDIL and sought a major share in the venture, HDIL was open to selling the land.

HDIL was now focussing on projects in and around Mumbai and there was nothing Kochi-specific in its move. The company had also put up its property in Hyderabad, Pune and Noida for either sale or joint venture partnership, said Mr. Pandey.

The Cybercity project, which was held up as the first integrated IT hub in the State on the lines of SmartCity, was meant to host hundreds of back offices and software development units in an integrated fashion and spread over one millions sq.ft. of space in the first phase. It was touted to provide 60,000 jobs and involve an investment of over Rs. 2,000 crore.

However, work on the project never got going despite its launch in 2008 by the then Industries Minister Elamaram Karim, who famously said that businesses could not be set up on coconut trees. He was responding to a raging controversy over the sale of government land cheaply to private entrepreneurs.

The high decibel controversy saw the then Chief Minister V.S. Achuthanandan keep away from the inauguration of the project, the task then being taken up by Mr. Karim, who on Thursday defended the land deal.

The 70 acres was sold for Rs. 91 crore and HDIL stands to gain immensely with the land rates being five times that amount in Kalamassery now.

Mr. Karim claimed that the land was sold on the condition that it would be used only for industrial purposes. The UDF government must show the will to ensure that this condition is followed, he said. He claimed that there was nothing wrong in the 2006 deal in which HDIL’s subsidiary Bluestar Realtors Private Limited bought the land from HMT through an open bid in which the company was the highest bidder.

Meanwhile, the HMT Employees’ Union (CITU) has decided to move the court to prevent the land sale. The union will also use other means to thwart HDIL intentions, said its secretary Satheesh Kumar.

However, there appears nothing that might prevent the debt-ridden HDIL from selling off the land to raise revenue. HDIL’s financial results for 2012-13 showed that its consolidated debts stood at 4,018.83 crore. The company has also recorded Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) at Rs.712.23 crore for the year 2012-13.

A legal expert here said that the HMT land was exempted from Kerala Land Reforms Act 1963 and that the government-owned company had carried out an outright sale. V.D. Satheesan, MLA, who raised the issue in the State Assembly, was of the same view.

Courtesy: The Hindu

Central Bank of India: Momentum Building Up

Central Bank of India, one of the leading Public Sector Banks in the country, has renewed the CBS (core banking solution) agreement with Tata Consultancy Services (TCS). Earlier in June 2005, the bank had given the contract to TCS to implement CBS in over 1,000 branches of CBI. The renewed agreement is the extension of the same contract.

Moreover, Central Bank of India has started an exercise to profile its defaulting borrowers. With this initiative, the bank aims at assessing whether the defaulters are cordial to repay their overdue debt or should be proceeded against under the recovery law. The bank has taken this step as its bad loans increased by 16% year-on-year to Rs 8,456 crore as at March-end 2013

Meanwhile, IBM announced recently that Central Bank of India is leveraging IBM analytics to radically transform its financial management processes which includes activities ranging from budgeting to forecasting to liquidity management. The Central Bank of India is now one of the few public sector banks achieving complete automation of corporate performance management activity on a bottoms-up approach, as per what the announcement added.

The convergence of a number of factors including the constantly changing regulatory environment, as well as the desire to uncover deeper customer insight from massive data, were the key drivers behind the Bank's decision to streamline its financial systems. The company states that as a result of IBM's solution for corporate performance management, the company is now able to gain better insight into branch and regional office performance, allowing for further flexibility and quicker shifts in strategy to drive improved results while also maintaining regulatory compliance.

"With the use of analytics, the Central Bank of India has moved away from spreadsheet based planning to a smarter process that analyzes daily financial data based on actual performance and potential for growth. Equipped with specialized planning features, and simplified data capturing at the branch and regional office level, the IBM solution has helped the Bank to uncover new sources of customer value."

"With the rapid explosion of Big Data, collecting, sourcing and analyzing real-time data from multiple sources is a growing challenge for banks," said Jeby Cherian, Vice President and Managing Partner, Global Business Services, IBM India/South Asia.

The entire budgeting exercise of the Bank, as further added, is now conducted through IBM's solution which cuts planning cycle time in half and significantly improves accuracy of financial reporting by automating previously time consuming manual processes and ensuring that systems across the Bank's locations and product lines are interconnected. This enables the Bank to get real-time insight on performance efficiency as well as the capability to track deposits, loans and non-performing loans data on a daily basis.

Another key part is the implementation of Static Asset Liability Management Solution which enables the company to reduce liquidity risk and also minimize impact of interest rate and foreign exchange rate movements. As such, the Bank has achieved total automation of this tedious and time consuming process by consolidating approximately 7.5 million deals and trade positions across the company.

"The power of analytics is that it gives us more confidence in our financial reporting, leading to faster, more responsive decision-making." said M V Tanksale, Chairman and Managing Director, Central Bank of India.

"With Single Data Repository solutions, the Bank can gain more visibility inside its own business as well as identify more profitable customers. Thus, these solutions provide great levers for us to identify cross-sell and up-sell opportunities and increase customer wallet share."

Besides, the public sector lender Central Bank of India will soon launch a flexible card that will perform the dual function of being both a debit and credit card.

What's more, such a card will switch automatically from debit to credit mode when cash runs out in an account.

The card will act as a credit card in case of unavailability of funds in a customer's account and debit card when the account has sufficient funds.

Unlike the current practice of a maintenance fee, this card will be given free to customers.

"We are in the process of making kits for these cards. We expect to launch the card within a month," said S Das Gupta, general managing, Central Bank of India.

"We haven't worked on the details of the card yet but initially the card will be given free to customers."

With the use of plastic money on the rise in India, banks are betting big on credit cards

For the year ended March 31, 2013, the bank's net profit rose 90.41% at Rs 1014.96 crore as compared to Rs 533.04 crore for the year ended March 31, 2012. Bank's total Income has increased by 14.52% to Rs 23,527.98 crore for the year under review from Rs 20,544.80 crore for the previous fiscal. Central Bank of India earlier informed BSE that the Dividend will be paid to shareholders on July 08, 2013, subject to declaration by shareholders at Annual General Meeting.

Sources: CIOL, Hindustan Times and India-Commodity

Q4FY13 results of Glodyne Technoserve Ltd

IVRCL Ltd: Long Run Expected

Triggers: 

(i) IVRCL Ltd said a couple of months back, that it will sell its stakes in three road projects in Tamil Nadu to TRIL Roads Pvt Ltd, a unit of steel-to-salt conglomerate Tata Group. The 154.83 km-long roads are build-operate-transfer (BOT) projects with a total project cost of Rs. 2,200 crore. IVRCL has plans to sell three more assets out of 9 BOT projects within a span of six months. According to my close sources, the process have already started, though some hassles are still to be sorted out (Watch the accompanying Video). IVRCL requires Rs.11bn in the next 3.5 years to invest in BOTs.

(ii) According to a press release issued by the company, its Transportation Division bagged orders worth Rs.445.54 crore in May, 2013. The orders include Road and Drain improvement works in Karnataka, construction and upgradation of road in Madhya Pradesh and Construction of roadbed, station buildings and passenger amenities for east coast railway, the release said. The Building Division secured orders worth Rs. 183.61 crore. The works include construction of secondary technical school in Umm Al Quwain in UAE and construction on integrated office building for ISRO in New Delhi, the release added. According to the release, remaining orders worth around Rs.10 crore pertain to various other miscellaneous work.

(iii) Financials: IVRCL Ltd has registered a profit of Rs.6.06 crore for the quarter ended March 31 against a profit of Rs.4.94 crore for the corresponding period last year, recording a jump of 22.67 per cent.  Income from operations was down 6.5 per cent at Rs.1,494.26 crore against Rs.1,597.97 crore for the same period last year. The Hyderabad-based construction and infrastructure company’s full year numbers are not comparable as it had an extended 15-month financial year last year. This was to facilitate restructuring of operations, including the merger of group companies and also the demerger of certain divisions. 

The company has a humongous order book of Rs.27,444 crore. Any Repo rate or CRR cut by the RBI in the next policy meet would be positive for the Bank, Real Estate and Construction Counters. Meanwhile, a brokerage  house has given a target of Rs.55, for the scrip. CMP: Rs.19.05.

Market Mantra

In the mid-market newsletter to the Paid Group members, a buy on Housing Development & Infrastructure Limited (HDIL) was reteirated at Rs.42.  HDIl, has taken a decision to sell the 70 acres of‘HMT land’ at Kalamassery, Kerala. HDIL has published advertisements in two newspapers stating that  in Kalamassery is “available for sale/joint venture”. Now the point is that: The HDIL had bought the land parcel for Rs.91 crores in 2006. Now the organization is reportedly trying to sell an acre of land for 8 (eight) crores. So, the total package now comes to around Rs.560 Cr, which is a huge premium to the buy price. The company has debt of around Rs.3700 Cr, which is expected to get reduced substantially, if this land deal goes through. Buy at Rs.42, T--Rs.54, SL--Rs.37.  
The IVRCL Ltd today moved to Rs.19.60, before trading now at Rs.19.30. Recently, a brokerage house has given a target of Rs.55 for the scrip. Hence, buy the stock on all declines and keep holding.  Also, accumulate, ARSS Infra Ltd at Rs.26.90 for a target of Rs.34. Any CRR cut or Repo cut would be positive for the Banking and Real Estate/Construction Sectors. The RBI has already cut 125 basis points since the rate cut has started, but the commercial banks are still to allow full transmission. Therefore, the real estate/construction sector looking good for investments. It seems from the morning trade that both the Glodyne Tech (CMP: Rs.10.99) and Suzlon Ltd (Rs.10.98) has more or less bottomed out.
Following is the gist of the message sent to the Paid Group and to those who are trading through my recommended brokerage  houses today:  A gap down opening is seen today amid weak global cues. Inability to hold the level of 6100 and a close below 6000 mark shows weakness among Bulls. Market during the last few trading sessions has shown extreme volatility at higher levels, denoting uncertainty and fear among the trader community. However, there are initial signs of this market bottoming out. Nifty-Future Longs may be taken at 5910, with a SL of 5882 (which is the trend deciding factor) for a target of 5970--5990. The fact that Nifty_Futures got support in the band of  5895-5882, could give new confidence to the bulls. After this message the Nifty_Futures touched 5944. 45 and is now trading at 5933 above the resistance zone of 5928.
Nifty_Spot Resistance: 5950 / 5975
Nfity_Spot Support: 5880 / 5850.
THEREFORE, JOIN THE PAID SERVICE OR JOIN MY RECOMMENDED BROKERAGE HOUSES TO MINIMIZE YOUR LOSSES AND TO MAKE MONEY FROM THE MARKETS. In these kinds of market, where even the experts are finding difficulty to make money, it would NOT be prudent for the general investors to take a plunge, simply by hearing the market men on various television channel. 

Govt gives nod for Rs 10,000-cr development plan for Mumbai airport
By TBM Staff | Mumbai

Chhatrapati Shivaji International Airport

The Maharashtra government has given approval to the development plan for Chhatrapati Shivaji International Airport (CSIA), Mumbai. The gazette notification for the interim development plan, which was to be implemented between 2010 and 2013, was issued last week. The project is estimated to cost Rs 10,000 crore and includes development of terminals, airside and part of landside, Clara Lewis reported in The Times of India. The plan does not include drains, metro, etc. "Maintenance, augmentation, development of city-level infrastructure networks and services, and related future projects within CSIA-notified area need to be funded by local authorities, the state government and private agencies,'' the plan states.

Only slums spread over 104 acres on the Eastern side will be shifted for expansion of the aeronautical area. This area is spread over Kurla, Kirol, Mohili and Asalfa. A major portion is to be developed as green open space, particularly along and below the flight path.

There is a question mark over the shifting of those residing in the slums as the airport developer cancelled its agreement with Housing Development & Infrastructure Ltd (HDIL) last week. HDIL was to construct flats for the rehabilitation of the slum dwellers. The Mumbai Metropolitan Region Development Authority (MMRDA) had appointed HDIL, and will now have to take a decision on who will build the flats.

With the slums unlikely to be shifted at least till after elections, MIAL sources said it would partially affect Phase II of the plan, especially the construction of the South-East pier (aerobridges). Phase I (South-West pier) will be completed by the year end, said sources.

 

Courtesy: Travel Biz Monitor

HDIL to sell land in Kochi to mobilse funds
~~K Raghavendra Kamath/Mumbai 05 Jun 13

HDIL, which was recently in news for Mumbai airport scrapping its slum rehabilitation project, is looking to sell 70 acres of land in Kochi in Kerala to mobilise resources.

In February 2011, HDIL announced that it will build a mixed use project Cybercity at Kalamassery special economic zone at an investment of Rs 2,300 crore. The project would have a built up area of 10 million square feet.

HDIL has been selling development rights and land parcels to reduce its debt and fund projects and it is a part of company's strategy to mobilise funds, said an analyst.

"HDIL is looking for prospective buyers/Joint Venture partner for land at Kalamassery, Kochi, Kerala," the company said in a release.

HDIL stock was trading at Rs 41.45, down 0.84% from previous close.

Courtesy: Smart Investor