WINNING STROKES: THINK DIFFERENT

Pix Transmission Ltd recommended yesterday around Rs.49-49.5 today touched Rs.54, before closing at Rs.52.60. The next targets seems to be Rs.59-60. 

Resurgere Mines and Minerals Ltd today hit another buyer freeze at Rs.1.63. The investors were asked to lap up the scrip on all declines. 

IVRCL Ltd today closed flat at Rs.18.85. The company should be doing well in the short to medium term. The investors are suggested to accumulate it on all declines. 

Allied Digital Services Ltd today hit the buyer freeze at Rs.18.50. Yesterday, some positive news regarding the mega-Pune project was revealed in this blog. 

PVP Ventures Ltd today fell by more than 4%. The scrip will not rise till the Potluri Vara Prasad and his family stops looting the company, in broad day light. 

FIIs and DIIs were Net Buyers

India’s Q1 gold jewellery exports up 23%, even as global falls

Photo: Live Chennai

SURAT,  Aug 20, 2014: Gold jewellery exports from India has increased 23% in the first quarter of the current fiscal to nearly $2 billion, even as the global demand for the jewellery saw a decline of 36% in the same period. 

According to a report by the World Gold Council, the demand fell due to a decreased off-take in Asia and the Middle East. However, demand picked up in the US and UK. 

Industry experts also attributed the increase in exports to a decline in gold price. 

Pankaj Parekh, vice-chairman, GJEPC, said, "As compared to 2013, gold prices have softened almost 13%. Also, the economies of the US and the UK are recovering, which has led to the rise in exports." 

Vipul Sutariya of Dharmanandan Diamonds, a DTC sightholder company, said, "The jewellery markets in US and UK are performing well. Since the gold prices have fallen internationally, consumers are looking at gold-studded jewellery." 

Aniruddha Lidbide, gems and jewellery sector analyst, said, "Some jewellery manufacturers are making minimum use of gold in studded jewellery to cut costs. Jewellery with lower gold component has become a major hit in western countries." 

According to the Gems and Jewellery Export Promotion Council (GJEPC), India exported Rs 12,115 crore worth gold jewellery in the quarter, registering an increase of 23.36% compared to the same period last year. 

"The decline in jewellery demand was dramatic, given such high levels of demand one year earlier. Broad weakness for gold jewelry was noted across Asia and the Middle East, while western markets recorded some improvement, except for Italy, where the fabrication sector is benefiting from improved US demand and re-stocking in other key markets," WGC said in its report. 

In India, however, gold jewelry demand fell 25% to $6.4 billion. The WGC stated that an "unofficial flow of gold" into India continued during the second quarter, particularly during the first half as premiums were pushed higher. Such flow of gold will likely build momentum over the coming months as the market moves into the seasonally stronger period of Diwali and the wedding season. 

Courtesy: The Times of India

Market Mantra

Resurgere Mines and Minerals Ltd today hit the buyer freeze in the opening trade. The scrip has fallen, to some abnormal levels, inspite of the management sounding optimistic. 

Todays' call: If you have some Free Cash please buy PIX Transmission Ltd (BSE Code: 500333) at Rs.49---49.50. The company's Q1FY15 results are  not bad and also, its management has expressed confidence in its business. Moreover, you can exit Genera Agri Ltd at Rs..6.50-6.70, either with minimum loss or at no loss no gain; if you have not averaged. If you have bought recently then book profits in Genera Agri Ltd and exit the counter. You can put this money in Pix Transmission Ltd. PIX Transmissions Ltd., is the leading manufacturer of Belts and related mechanical transmissions products in India. The Company has state-of-the-art Belt manufacturing units as well as a completely automated Rubber Mixing facility in Nagpur.
PIX Transmission Ltd enjoys significant brand equity in the Power Transmissions industry, with strong local as well global presence. The company has overseas subsidiary operations in Europe, and Middle-East, in addition to over 250 committed Channel Partners in over 50 countries worldwide.
Product Range: PIX manufactures an extensive range of Industrial V-Belts, Automotive Belts, Agricultural Belts, Special Construction Belts, Taper Lock Pulleys and Bushes to suit a wide array of applications.

Allied Digital Services Ltd (Rs.16.95): The company came out with not so satisfactory numbers for the Q1FY14, as some of their payments got delayed, due to parties asking more time for more time to clear their dues. Their revenues as well as their profit suffered. According to the sources, 2nd quarter is expected to be lackluster too, but from the 3rd quarter, the results are expected to be a little better. Hence we could see the share price start to move up from October, 2014 onward. Till such development takes places, the scrip is likely to trade range bound. Moreover, the company's Pune project is likely to get completed by December, 2014. This will give some push to its revenues. The company has also applied for a similar deal for Mumbai (Bombay), but the things are in the initial stages.
In case of Nifty (7876.10), a decisive rise above 7841 and a close near its new life time high clearly shows resumption of uptrend after an intermediate correction. Market is now in a No Resistance Zone and the Bulls are in full control of the affairs. However, for the time being the Nifty might move sideways, while the action will be concentrated in the small and mid cap space. 

Modi outlines his vision for inclusive growth

Photo: OECD

[Editor: Narendra Modi and the media often talks of "Inclusive Growth" of India and a large section of Indians cheers; as if it is very easy to achieve. I therefore, wonder how many of these media-men who often speak about "Inclusive Growth" really know the meaning of the term. So, let us get some idea about, one the most misused term, "Inclusive Growth'" from a Planning Commission Document, GOI: "The progress towards inclusiveness is more difficult to assess, because inclusiveness is a multidimensional concept. Inclusive growth should result in lower incidence of poverty, broad-based and significant improvement in health outcomes, universal access for children to school, increased access to higher education and improved standards of education, including skill development. It should also be reflected in better opportunities for both wage employment and livelihood, and in improvement in provision of basic amenities like water, electricity, roads, sanitation and housing. Particular attention needs to be paid to the needs of the SC/ST and OBC population. Women and children constitute a group which accounts for 70% of the population and deserves special attention in terms of the reach of relevant schemes in many sectors. Minorities and other excluded groups also need special programmes to bring them into the mainstream. To achieve inclusiveness in all these dimensions requires multiple interventions, and success depends not only on introducing new policies and government programmes, but on institutional and attitudinal changes brought about, which take time". Therefore, is the Prime Minister of India, Narendra Modi aware, what he is speaking of, in front of poor Indians]

NEW DELHI, AUGUST 15:  Prime Minister Narendra Modi’s maiden Independence Day speech promised a new foundation for a more inclusive India — socially, economically and politically. Sporting a red and green turban and half-sleeved kurta pyjama, Modi said he thought of himself “not as a Prime Minister but pradhan sevak (chief servant) of the people”.

In his speech, which lasted over an hour, Modi harped on his status as an “outsider” among Delhi’s power elite, portraying himself as someone who was working for the common man and who would push a fractious bureaucracy to work in a united and purposeful manner.

The unscripted speech, delivered with only an occasional glance at some notes, was short on big-ticket announcements, barring a financial inclusion plan, the Pradhan Mantri Jan Dhan Yojna. The scheme envisages provision of a bank account, a debit card and insurance cover up to ₹1 lakh for the poor.

Planning Commission to go

Modi also ended speculation about the fate of the Planning Commission, which, he said, would be replaced by another institution that will be more in keeping with India’s federal structure as well as more relevant in today’s domestic and global economic environment.

After announcing a scheme, the Sansad Aadarsh Gram Yojna, under which each MP will create a model village in his or her constituency using MP Local Area Development funds, Modi fixed October 11, the birth anniversary of Jayaprakash Narayan, as the deadline to reveal its blueprint.

Shun communalism

What generated the most debate among talking heads on television as well as on social media was his call for a moratorium on communal and caste violence.

“For centuries, India has been torn by communal violence. The country was partitioned but we still have not learnt from our past. For how long will we allow this to continue? When will we understand that there is nothing to be gained from this…?

Give up communalism, casteism for ten years and embark on a path of development and progress. Experiment with it and you will realise that there is no alternative to peace, brotherhood and harmony if we want to progress as a nation,” said Modi.

Call for consensus

Striking a non-partisan note, he said all governments have played a role in developing India. The Prime Minister also acknowledged the Opposition’s role in the relatively smooth conduct of the just-concluded Parliament session. “We are not for moving forward on the basis of majority…We want to move ahead on the basis of a strong consensus … I salute all political parties; by virtue of their strong support, we could take important decisions to take the nation forward,” he said.

Bureaucracy cautioned

Modi had a word of caution for the bureaucracy, saying that government servants are losing credibility among the people.

“Why is it that the newspapers are saying that after Modi’s arrival, government officials have started coming to office in time? If punctuality among bureaucrats makes news, then imagine how low we have sunk in people’s estimation,” said the PM.

He also said he was “shocked” at the number of disputes among various departments within the government, adding that he was trying to end this so that the government “moves as a dynamic, organic entity”.

‘Make in India’

Besides focusing on the girl child, the skewed sex ratio, the need for hygiene and a toilet in every home, the PM stressed on skill development and poverty eradication.

And he coined a pithy slogan for his pet theme, manufacturing: “Come, ‘make in India’, paper or plastic. Come, make in India, satellite or submarine. As I say to the world ‘Come, Make in India’, I say to the youth of the country: it should be our dream that this message reaches every corner of the world; ‘Made in India’. This should be our dream.”

(This article was published on August 15, 2014)

Courtesy: The Hindu Business Line

PM Narendra Modi stresses on building infrastructure; says take ownership to build a strong nation 

Photo: IDFC

[Editor: The real problem with Narendra Modi is that he talks more but works less. He is seen more, giving high publicity to his works, rather than showing his real achievements. However, he is a quality (good) salesman, who somehow managed to reach the corridors of New Delhi. Now it seems a large section of the media dances to his tune. Anyway, I sincerely hope that, he becomes a man of action instead of living only on his past glory. But then I am more interested with the performance of the NDA. If the NDA does well and our (Indian) economy shines, then it does not become important, whether Narendra Modi continues to remain a Buffoon or not. A  monkey will always climb a tree, whether it is England or India. So let the ape climb a tree as long as it fetches fruits for us]
NEW DELHI, 19 Aug, 2014: Stressing on the importance of building a robust infrastructure, Prime Minister Narendra Modi on Tuesday said, "A nation that gives impetus to infrastructure, be it roads, rail, airport, that is where chances of development increase."

"We have to take ownership to build a strong nation," Modi said. "When the road network increases the avenues of development increase too," he added. "We cannot do with infrastructure of the last century. Any contractor comes makes a road & it gets destroyed in monsoon...this won't do," Modi said.

Modi also said that removing corruption was key to ensuring progress. "Corruption is worse than cancer. We together have to uproot this evil," he said. "'Mera Kya' and 'Mujhe Kya'...this has ruined the nation. We need to free nation from corruption," he reiterated. 

Modi laid foundation stone for the Kaithal-Rajasthan border section of National Highway 152/65, at Kaithal in Haryana.

The Rs 1,393 crore project road starts from Kaithal and ends at Haryana-Rajasthan Border and will be completed in 30 months. It passes through Kalayat, Narwana, Barwala, Hisar and Siwani towns, the officials said.

Twenty-three underpasses and 20.90 km service roads are proposed in the project near villages which shall ensure the safety of the pedestrian and the people residing in the vicinity of the road, they said.

(With inputs from PTI)

Courtesy: The Economic Times 

WINNING STROKES: THINK DIFFERENT

My recommended Genera Agri Ltd (Rs.6.510 hit the buyer freeze in the late afternoon trade. The scrip has a book value of Rs.76.02 and EPS of Rs.1.70.

IVRCL Ltd moved up in late afternoon trade, after the following news was sent to the Paid Group members: The government is modifying the way projects are allocated based on assessment of viability, in a bid to fast-track award of highway projects.  

Resurgere Mines and Minerals Ltd hit the buyer freeze on both the exchanges as the Goa government plans to renew the mining leases of those who have paid stamp duty.Goa Chief Minister Manohar Parrikar, in the State Assembly on Monday, said that atleast 27 mining leases on which stamp duty has been paid would be renewed by October 15. Moreover, the company is looking at P.E. funding to revive its business. Also, one of the biggest beneficiaries from the start of mining operations in Goa, would be Western India Shipyard Ltd (Rs.2.08). 

PVP Ventures Ltd (Rs.6.50), fell by more than 5% in BSE today. The scrip will NOT RISE till the promoter family (of Potluri Vara Prasad), stops sucking the company from the top to bottom. Money generated from this firm would obviously be siphoned off to his family entities, showing fictitious balance sheet/s. His hob-nobbing with Sachin Tendulkar and others are only to hide the essential truths----looting the shareholders to the last drop of blood. He is one of the biggest CROOKS of Vijayawada and it is good that Mr.Chandra Babu Naidu has denied him a ticket in the last Parliamentary elections. 

Sesa Sterlite gains as Goa govt to renew mining leases

[Editor: The most burning question now is: will this move usher in good days for the mining and shipping sector (especially ship repairing sector)? Only time will be able to tell, but if statistics are to be believed then those holding the shares of shipping and mining companies have much to cheer now]

Mumbai  August 19, 2014: The Goa government plans to renew the mining leases of those who have paid stamp duty

Shares of Sesa Sterlite were up nearly 4% at Rs 303 after the Goa government decided to follow the order of the Goa bench of the Bombay High Court to renew mining leases.

Goa Chief Minister Manohar Parrikar, in the State Assembly on Monday, said that atleast 27 mining leases on which stamp duty has been paid would be renewed by October 15.

He also announced that the mining operations in the State would be resumed by this year end.

The stock opened at Rs 298 and touched a high of Rs 305 so far on the Bombay Stock Exchange. Over 2.8 million shares were traded on the Bombay Stock Exchange and National Stock Exchange so far.

Courtesy: The Business Standard

Goa government not to challenge HC order on renewal of mining leases

Photo: The Times of India

Saturday, 16 August 2014: In a clear signal that 28 mining leases would soon be operational resuming iron ore extraction in the state, Goa Chief Minister Manohar Parrikar said that the government will not challenge the recent High Court order which has asked the government to renew these leases.

The 28 mining leases in the state had got respite from the Goa Bench of Bombay High Court last week. The lease owners had already paid the duty under Indian Stamp Duty (Goa amendment) Act, 2012 as part of the renewal process.

"The mining lease owners trusted government when no one else did it. I don't need to challenge the High Court judgement as it clearly says that the lease deeds can be executed subject to the conditions laid down by the Apex court in the writ petition," Parrikar told reporters here yesterday. The mine owners had paid the stamp duty to the government despite Apex Court imposing the ban on the activity and industry's future was uncertain, he said.

The chief minister said the government would consider renewing these 28 leases.

"These mine owners paid me money (in the form of stamp duty), from which government generated revenue to the tune of Rs 435 crores. I managed to pay salaries of the government servants from this amount. Hence we would consider them within the framework of our mining policy, which would be discussed in detail on Monday on the floor of the House, next week," Parrikar said.

A division bench comprising Justice U V Bakre and Ranjit More had directed the state to execute the lease deed under Mines and Minerals Development Regulation (MMRD) Act.

Courtesy: DNA India

Hold IVRCL Infra, target price Rs 25: Edelweiss

[Editor: I had earlier asked all to buy IVRCL Ltd (Rs.18.20) on all declines and keep holding for a target of Rs.31-32. But some traders started selling the scrip, post Q1FY15 results, like mad fellows. It is these people I know will not make much money from the markets. The pont is that if you go on buying and selling continuously (at the fall of a hat), then it is only the Brokerage House/s which gain/s and not you. Stick to few companies and track them on regular basis, to make money from the markets. Don't apply strict stop losses in a  bull market, because a scrip could suddenly rebound, taking all of you by surprise. Many traders I know sell a scrip with the hope of buying that at a lesser price---but unfortunately that does not happen all the time and they are left crying as the scrip suddenly starts hitting the UCs]

Photo: IVRCL Ltd

Edelweiss Securities has given a hold recommendation on IVRCL Infrastructure with a target price of Rs 25.

In a note to clients, the brokerage said IVRCL Infra (IVRCL) reported loss of INR1.6bn (versus estimate of INR812mn loss) in Q1FY15 as falling sales and INR290mn provisioning for bad debts took their toll. Operating de-leverage led to fall in margins which along with surge in interest costs resulted in the large loss for the quarter. 

“Early conclusion of the sale of BOT assets and the CDR* process (currently under way) could provide relief on the funding front (which will help execution) and interest cost. Owing to higher-than-expected losses, we lower our target price to Rs 25 (Rs 28 earlier). We maintain a ‘hold’ rating on the stock,” the brokerage said.

Revenues came in at INR8.3bn (down 17% YoY) as working capital crunch forced the company to slow down execution. This impacted operating margins, which at 1.6% fell by 300bps YoY and 280bps QoQ. The company’s debt remained high at ~INR39bn, which meant that interest costs at INR1.6bn rose 25% YoY despite sluggish top line. As a result, the company posted INR1.6bn loss in the quarter.

During the quarter, the company received approval for its CDR process. The same is currently underway and its implementation will provide the much needed working capital funding post which the company should witness traction in execution. Similarly, it expects the sale of its three BOT projects to get concluded over the next few months which should also ease its fund constraints (can provide ~INR4bn funds). The company also plans to raise funds through a rights issue, which should further alleviate its financial stress.

IVRCL’s return to profitability depends on early resolution of its balance sheet issues, which is the key to get execution back on track. Till such time, revenues will remain muted and profitability will be under pressure. “We revise our target price to INR25 —INR13/share from EPC business (valued at one-year forward price/book multiple of 0.5x), INR11 from BOT projects (DCF valuation) and INR1 from Hindustan Dorr Oliver (market cap basis). We believe the stock will trade at a discount to fair value till concerns on a leveraged balance sheet and profitability get resolved. We maintain hold rating on the stock,” the brokerage said.

IVRCL Ltd: Satisfactory Results on Sequential basis

The south India based construction company IVRCL Ltd (Rs.19.80) came out with comparatively good set of numbers in Q1FY15, speaking sequentially; indicating, that the worst is perhaps over. In these kinds of companies it is futile to compare Y-o-Y figures, due to obvious reasons.

The total income of the company for Q1FY15 came out to be Rs.833.50 crore as against Rs.1217.13 Cr in Q4FY14. The expenses came down drastically from Rs.1185.46 Cr in Q4FY14 to Rs.844.77 Cr in Q1FY15. Moreover the finance cost has nosedived to Rs.2.44 cr in Q1FY15 from Rs.44.83 cr in Q44FY14. The net loss of the company came down to Rs.157.92 Cr as against a loss of Rs.328.11 Cr in Q4FY14.

Moreover, the company has an investment of Rs.65.75 Cr in its subsidiary, Hindustan Dorr--Oliver Ltd. During, Q4FY14, corporate Debt Restructuring Empowered Group, at its meeting held in on June 28, 2014 have approved the CDR proposal submited by the company. The BOD of the company in its meeting held on June 30, 201 accepted the LOA and initiated the implementation of the CDR scheme. 

The investors should accumulate the scrip on all declines and keep holding. This scrip is expected cross Rs.30-31, in the coming days, as the NDA gives more thrusts on Infrastructure Projects. 

Commerce Minister for easing of gold import restrictions

Says restrictions are hurting the industry and has also led to spurt in smuggling of the precious metal

Photo: World Gold Council

New Delhi  August 11, 2014: With restrictions on gold imports leading to rise in smuggling, Commerce and Industry Minister Nirmala Sitharaman has pitched for relaxing gold import duty as it is 'badly' hurting the gems and jewellery industry.

"As a Commerce Minister, I would want the gold restrictions to go away because gems and jewellery industry have been worried that a sector which is potentially so powerful is suffering because of the gold import policy," she told PTI.

The minister said that gems and jewellery industry contributes significantly to the country's total exports.

Gems and jewellery exports contribute about 15% to the country's total outbound shipments. In 2013-14, the exports were to the tune of $39.5 billion while India's total exports aggregated at about $312 billion.

She said that restrictions are not only hurting the industry but has also led to spurt in smuggling of the precious metal.

"Gold policy which was brought in for some other purpose because you want to contain growing CAD (current account deficit) but that hurts industry very badly. We have been telling that to the Finance Minister," she added.

She said that restrictions may have had impact on CAD but "it has also brought back the horrible days of smuggling of gold."

The cases of gold smuggling had gone up in 2013-14 to 2,441. In 2012-13 and 2011-12, the number of such cases stood at 869 and 500 respectively.

Sitharaman expressed hope that once the CAD enters into comfort zone, the Finance Minister may want to reconsider relaxing the import norms.

CAD, which is the excess of foreign exchange outflows over inflows, touched a historic high of $88 billion or 4.7% of GDP in 2012-13, mainly due to rising imports of gold and petroleum products.

In order to check the rising CAD, the government raised import duty on the yellow metal to 10%, while RBI imposed curbs on import of gold and also laid down various pre-conditions for inward shipments of the precious metal.

CAD came down to $32.4 billion or 1.7% of GDP in 2013-14.

The RBI in May had eased gold import norms by allowing select trading houses, in addition to already permitted banks, to procure the precious metal to boost exports.

Gold imports declined 72% to $2.19 billion in May.

Courtesy: The Business Standard

Want gold import duty gone, hurts jewellery industry: Comm Minister Sitharaman

Photo: The Times of India

New Delhi: With the restrictions on gold imports leading to rise in smuggling, commerce and industry minister Nirmala Sitharaman has pitched for relaxing gold import duty as it is ‘badly´ hurting the gems and jewellery industry.

“As a commerce minister, I would want the gold restrictions to go away because gems and jewellery industry have been worried that a sector which is potentially so powerful is suffering because of the gold import policy,” she told PTI.

The minister said that gems and jewellery industry contributes significantly to the country’s total exports. Gems and jewellery exports contribute about 15 percent to the country’s total outbound shipments. In 2013-14, the exports were to the tune of $39.5 billion while India’s total exports aggregated at about $312 billion.

She said that restrictions are not only hurting the industry but has also led to spurt in smuggling of the precious metal.

“Gold policy which was brought in for some other purpose because you want to contain growing CAD (current account deficit) but that hurts industry very badly. We have been telling that to the Finance Minister,” she added.

She said that restrictions may have had an impact on current account deficit (CAD) but “it has also brought back the horrible days of smuggling of gold.”

The cases of gold smuggling had gone up in 2013-14 to 2,441. In 2012-13 and 2011-12, the number of such cases stood at 869 and 500 respectively.

Sitharaman expressed hope that once the CAD enters into comfort zone, the finance minister may want to reconsider relaxing the import norms.

CAD, which is the excess of foreign exchange outflows over inflows, touched a historic high of $88 billion or 4.7 percent of gross domestic product (GDP) in 2012-13, mainly due to rising imports of gold and petroleum products.

In order to check the rising CAD, the government raised import duty on the gold to 10 percent, while Reserve Bank of India (RBI) imposed curbs on import of gold and also laid down various pre-conditions for inward shipments of the precious metal. CAD came down to $32.4 billion or 1.7 percent of GDP in 2013-14.

The RBI in May had eased gold import norms by allowing select trading houses, in addition to already permitted banks, to procure the precious metal to boost exports. Gold imports declined 72 percent to $2.19 billion in May.

Courtesy: First Post

WINNING STROKES: THINK DIFFERENT

Photo: Pearl Potluri
Can you recognize the woman in the photo ?

Yesterday, a buy call was initiated on Nifty ('Therefore, LIGHT long term positions may be taken, with a target of 7750 on the upside'), after it moved above 7600 and was threatening to break the immediate resistance of 7630. Today also the buy call was continued on the Paid Blog ('There are lot of shorts in the market and the market is expected to move up further on short covering alone'). I  hope those Premium Members who play on the Nifty Futures must have made good money, in the two days (Yesterday and today).

Western India Shipyard Ltd (Rs.2.08), which came up with comparatively good results in Q1FY15, on sequential basis, surprisingly came down today also. Also, both the net and operating profit margins improved sequentially, which indicates that good days are ahead for the company. In turnaround companies, we should always look at sequential results instead of Y-o-Y view. 

PVP Ventures Ltd (Rs.6.54), came out with slightly better results on sequential basis in Q1FY15, but what is surprising is the net profit, which is only Rs.57 lakhs, inspite of having the wife of Potluri Vara Prasad, who is one of the promoters of PVP Square Mall in Vijayawada, as one of the promoters of PVP Ventures Ltd!! Where is the money of PVP Ventures Ltd going? Moreover, when Sureddi Jhansi (the wife of Potluri Vara Prasad) and Potluri Sai Padma, could not bring any good to, PVP Ventures Ltd during the last 4-5 years, then on what basis the banks gave loans to them, to open PVP Square Mall? So, are the banks aware that the money is being siphoned off from the PVP Ventures Ltd by balance sheet mismanagement? The management has sucked up the company in such a way that even when the Nifty is near 7000, the share of PVP Ventures Ltd (CMP: Rs.6.54, Face Value: Rs.10) is still trading not only below its book value but also its face value. Meanwhile both Sureddi Jhansi and Potluri Sai Padma were able to come up with a mega-enterprise in Vijayawada, as Potluri Vara Prasad, dabbled with politics. In between, Potluri Vara Prasad was able to create a personal fortune worth crores, while the shareholders of PVP Ventures Ltd were left with a begging pan, like what is happening in SEL Manufacturing Company Ltd (Rs.4.43). How strange!! Now they might talk of buying the PVP Square mall, with whatever money is left in the kitty of PVP Ventures Ltd--this time the money going directly to the accounts of Sureddi Jhansi and Potluri Sai Padma. The moot point is that, the condition of the shareholders remains the same whether it is the UPA or NDA rule. Unfortunate!! Another point which I would like to stress is the gradual transformation of the Hyderabad (Erstwhile Andhra Pradesh) based companies to "Ahmedabadi Companies" (earlier the companies based in Gujarat had a very bad reputation of balance sheet manipulation) 

Allied Digital Services Ltd (Rs.18.65), having a Gujarati Promoter is coming up with Q1FY15 results on 14th August, 2014. It would be interesting to see if the company, comes up with dividend or not. It is to be noted that the company's fundamentals' have improved slightly during the last few quarters. 
It seems the correction in IVRCL Ltd (Rs.19.50) is over. The sock could move up in the near term as the SEBI on Sunday approved Real Estate Investment Trust norms. The company has an order book of around Rs.20, 000 crores and got its loans restructured, through a CDR package. 
My recommended A2Z Maintenance and Engineering Services Ltd hit another buyer freeze today at Rs.17.75. I received lot of flak when the scrip was recommended in this blog at around Rs.11-12. 

Mining loans policy by August 18, says Parrikar

PORVORIM, Aug 12, 2014: Cooperative banks and societies in Goa have agreed to waive off interest on mining loans to the tune of 40 crore but the government will announce a policy to bring relief to mining-affected loanees by September 18, chief minister Manohar Parrikar told the state legislative assembly on Monday.

The issue was raised by St Andre BJP MLA Vishnu Wagh in his starred question to cooperation minister Pandurang 'Deepak' Dhavalikar.

In his written reply, Dhavalikar said the loss suffered by banks and societies due to the closure of mining amounted to 113.12 crore. Unpaid loans by mining truck owners amounted to 77.89 crore, by earth moving machinery owners 12.36 crore, by barge owners was 98.73 crore and others 17.69 crore.

Wagh said that despite talks between the government and banks, the latter were still sending mining loanees, notices and threatening to seize their assets.

Wagh asked what steps the government would take to mitigate their sufferings.

Dhavalikar said cooperative banks and societies have already agreed to waive off the interest on the loans and they will soon get approval for this from their general bodies. The banks will also get the requisite permission from the Reserve Bank of India and later inform the government which will then chip in.

Bicholim independent MLA Naresh Sawal wanted to know whether the cooperative banks would still survive after waiving off the interest on their loans.

Parrikar intervened to say that if the loans are not settled, then the banks will sink. Otherwise, the banks would float and the government could later try to help them through the cooperation department. Parrikar also said that the government will soon announce its scheme on the issue.

Courtesy: The Times of India

Potluri Vara Prasad: A Serial Entrepreneur or a Successful Crook? 

Anjali and Potluri Vara Prasad

According to Wikipedia: Potluri Vara Prasad is a serial entrepreneur, philanthropist and educationalist. Then it goes on to adorn  him with all sorts of adjectives--but the question is: does he deserve to be called so, after having amassed a huge fortune for himself, while the shareholders of his flagship company PVP Ventures Ltd (which bears his initials) have remained poor? The share price of PVP Ventures Ltd (Rs.6.35) is trading not only below its book value of Rs.27.60, but has a dismal EPS (Re.0.33). 

Therefore, before we step further, let us take a look at  PVP Ventures Ltd and  how it is faring.  I also want to clarify that I do not not hold any shares of the company but have recommended, it a number of times here  in this blog, based on personal charm of its CMD and thinking that some day, the company would turnaround. But alas like earlier times this time too it has disappointed me, as far as Q1FY15 results are concerned. 

Though the June, 2014 quarter numbers are a bit better both on sequential basis and also on Y-o-Y basis, but the question remains how a BSE listed company, having a politician (with connections with the ruling NDA led by Narendra Modi) as its CMD comes up with net profit of only Rs.57 lakhs in Q1FY15, when even a medium sized "Kirana" shop in Mumbai or Pune rakes up this kind of figures? 

In this context it is pertinent to mention that some days back, some relatives of Potluri Vara Prasad, came up with a mega-shopping mall in the heart of Vijayawada. 

According to Potluri Sai Padma, managing director of PVP Square (The Hindu Business Line, July 31, 2014), it has invested over Rs.125 crore on this shopping mall-cum-multiplex and it aims to break-even in the coming 10 years. Ms. Padma further said, “It’s the world class and biggest mall in Andhra Pradesh. With over 4.27 lakh square feet space and association of global brands, the mall stands tall in the new State.”

Now who is the promoter of PVP Square : Ms.Jhansi Sureddi, the wife of Potluri Vara Prasad. This company, PVP Square Mall has no connection with PVP Ventures Ltd but is still using PVP Logo and name. PVP Ventures Ltd is silent on the matter till now, with no official bulletin coming  in the stock exchanges, as how this is possible? 

Anyway, now if we look at the shareholding patterns of PVP Ventures Ltd we would find that a company named Platex Ltd holds around 54.12% of the shares of the company. The rest of the promoters are Sureddi Jhansi, the wife of Potluri Vara Prasad, who holds 2.81%, while Potluri Sai Padma  holds 0.61%.  

So, while being the promoter of PVP Ventures Ltd, Sureddi Jhansi, could not bring much charm for the shareholders, but in between she was able to spin another company worth crores of rupees. Doesn't it look fishy? Where is the money from PVP Ventures Ltd going? 

Moreover, the parent company of PVP Ventures Ltd, Platex Ltd is continuously showing losses on the books and the money is being pumped from the former to trim the same. Really what to say? Shall I have to explain more, what is happening in PVP Ventures Ltd? 

Unfortunately,  we have lot of regulators in India, in the form of SEBI, SAT, IT departments, etc. but it seems, some people are able to obfuscate ever departmement, and do "Day-light Robbery of Innocent Shareholders". 

Now, India's vocal media is also silent on the issue. In such circumstances, where will the shareholders go to get their problems addressed?

Is PVP Ventures Ltd (Rs.6.32) turning out to be another SEL Manufacturing Ltd? Only time will tell? 

But I want to know from you: what will be your nomenclature for Potluri Vara Prasad--a Serial Entrepreneur & Producer or a Successful Crook?

Goa iron ore mining might resume soon

Iron ore mining to start soon with rapid clearance of procedural delays

Mumbai  August 6, 2014: Iron ore mining in Goa is likely to resume soon. Chief Minister Manohar Parrikar has said a new mineral policy is to be presented to the legislature by the end of this month.

Nearly four months after the Supreme Court lifted an 18-month ban on iron ore mining, following the report of the M B Shah commission on massive illegalities in this regard, the state government is yet to present a clear mineral policy. However, Parrikar on Tuesday assured the legislative assembly that the revised policy would be presented by August-end, paving the way for resumption of ore mining.

On April 22, the SC lifted the ban and allowed auctioning of 12 million tonnes of unsold stock in phases. It, however, capped iron ore excavation at 20 mt in a year.

Mineral excavation was a major source for the state’s revenue collection. The sector also drove many others, such as shipping and transport.

“Parrikar’s assurance raises hopes of early commencement of iron ore mining,” said Haresh Melwani, chief executive officer of H L Nathurmal & Co, a state-based miner and exporter.

The ban was imposed in September 2012 on a petition filed by lawyer Prashant Bhushan after the commisison led by M B Shah, a retired judge, exposed a Rs 35,000-crore scam involving top companies, politicians and bureaucrats. The ban in Goa came after similar ones in Karnataka and Odisha, followed by partial lifting in both the latter states. This reduced iron ore supply for steel mills, resulting in their rising dependence on imports.

The apex court had banned illegal mining in Karnataka in July 2011. A partial resumption of mines was allowed in April 2013, with a production cap of 30 mt. In Odisha, the state government banned iron ore export in October 2012. It had said mining could be done only for captive use.

“We are waiting for the Goa policy. Post approval, the decks will be cleared to begin mineral excavation,” said a senior official of the Goa Mineral Ore Exporters Association.

Union steel minister Narendra Singh Tomar had on Tuesday presented to Parliament the third comprehensive report of the Shah commission, on illegal mining in Goa, Odisha and Jharkhand. It estimates a cumulative Rs 2,747 crore of illegal iron ore export from Goa in 2000-10. The report suggests recovery of this amount from mining companies, with interest, and initial penal action.

Before the ban, Goa produced only low-grade ore, purely for export; domestic steel mills hesitate to buy this quality. Since China, our largest iron ore importer, banned the import of low grade ore, Goan miners would not be able to export this. Iron ore supply for starved domestic steel mills will, however, improve.

Courtesy: Business Standard

Cinepolis India to launch of six screens at PVP Square Mall on M.G. Road 

Photo: Tollywood10

[Editor: While the parent company of PVP Ventures Ltd (Rs.7.30) have been continuously showing losses on the books, the PVP Square Mall was set up by the wife of the Vijaywada based businessman and Politician (linked with the ruling NDA), Potluri Vara Prasad, with a massive investment. The question is from where the money has come? Where is the money from PVP Ventures Ltd going? Was the money SIPHONED OFF from PVP Ventures Ltd to set up PVP Square Mall? Who gave her the permission to use PVP Logo and name to her business concern when it has nothing (Not a group company of PVP Ventures Ltd) to do with PVP Ventures Ltd? Is PVP Ventures Ltd a proprietorship firm or a Joint Stock Company? Where are the regulators now? Why is SEBI looking at the other side? Who will now protect the interest of the small investors? If a promoter does day-light robbery then definitely, the genuine shareholders will resent. PVP Ventures Ltd (Rs.7.40) is coming up with Q1FY15 results on 8th August, 2014]

Vijaywada, August 7, 2014: Cinepolis India has decided to open 40 more screens in Andhra Pradesh and Telangana in the next three years.

This is in addition to the 11 screens that are presently operating in the two States, Devang Sampat, head, strategy, Cinepolis, said here on Wednesday. Plans have also been chalked out to open similar screens in Guntur after getting an appropriate mall.

Giving details about the launch of six screens at PVP Square Mall on M.G. Road here, he said the all-digital, Real D 3-D equipped multiplex would feature up to 24 shows everyday in six screens with a capacity of more than 1200 seats. With this, the firm had achieved the landmark of setting up of 90 screens in the country, he claimed.

The company promised to offer the state-of-the-art 3D technology from Real-D systems to ensure viewers the most enthralling 3D movie watching experience. The screens were equipped with latest audio technology with Dolby 7.1 surround sound systems. The firm, which was operating over 3,400 screens across the country, would launch club Cinepolis and Coffee Tree, an in-cinema coffee shop to deliver an enriching movie experience to its patrons. Viewers could enjoy food at Coffee Tree and get benefit from the Cinepolis Club membership where movie goers could register without any charges and start accumulating points for every purchase made at the Cinepolis Box Office. These points could later be redeemed for free tickets, he said.

Club members have the lifetime opportunity to meet and greet their favourite film stars. “It will be a different experience for viewers to watch movies at our screens,” he claimed.

Explaining in detail about the expansion plans, he said priority would be given to South, especially Andhra Pradesh and added that Guntur has great potential to start the operations and efforts were on to search a right location.

Courtesy: The Hindu

PVP Square expects to break-even in 10 years

[Editor: This company, PVP Square, which belongs to one of the relatives of Mr.Potluri Vara Prasad (PVP), is strangely using PVP's name and logo of PVP Ventures Ltd, though not being a group company. According to the sources, this was possible because, the name and logo of PVP Ventures Ltd (Rs.7.40) is still not registered. Sardonically, Mr.PVP was seen inaugurating this mall viz. PVP Square, few days back, along with Mr.Sachin Tendulkar; which means that he is fully aware that this company, viz. PVP Square is using PVP Logo and name inspite of not being, a group company of PVP Ventures Ltd. isn't it? 
Now, the question is: How can a responsible citizen like Potluri Vara Prasad, who is from the ruling front, National Democratic Alliance (NDA), allow such misuse of the company's name and logo, to rob the genuine shareholders' wealth....? It would be pertinent to mention here that, since the last few years (especially, post Satyam Computer scam), many of the erstwhile Andhra Prasad based companies listed in the BSE have become jokes. PVP Ventures Ltd is perhaps turning out to be another one, from the same bracket. The shareholders should demand their legitimate share from the relatives of Mr.Potluri Vara Prasad, if they are using the name and logo of PVP Ventures Ltd, as it is not personal fiefdom of Mr.PVP. Also, in the last financial year, FY14, the company's interest cost came out to be Rs.19.40 Crores , a jump from Rs.44 lakhs in FY13. This according to the sources is to support the parent company, which is making continuous losses. Another white elephant in the making? Money is being siphoned off? Get prepared for the next Annual General Meeting and grill Mr.Potluri Vara Prasad on these issues]

Potluri Sai Padma,
PVP Square MD

VIJAYAWADA, July 31, 2014: The city-based entertainment company PVP Square has invested over Rs. 125 crore on a shopping mall-cum-multiplex in the upmarket Mogalrajapuram area. The company aims at achieving break-even in the coming 10 years according to Potluri Sai Padma, managing director of the mall.

Announcing the details of the inauguration of the mall by the cricket legend Sachin Tendulkar on August 1, Ms. Padma said, “It’s the world class and biggest mall in Andhra Pradesh. With over 4.27 lakh square feet space and association of global brands, the mall stands tall in the new State.”

The social infrastructure will be one stop destination for the entertainment starved denizens, she said. Several celebrities, including cine actors are likely to attend the inauguration besides Sachin.

While the promoter of the property is Jhansi Sureddi, wife of the serial entrepreneur and producer Potluri Vara Prasad, the project is funded by a consortium of banks led by Central Bank of India, according to the MD.

Courtesy: The Hindu Business Line

PVP Square Mall Vijayawada

Address : PVP Square, D. No. 39-1-57, M G Road, 
Moghalrajpuram-520010, Vijayawada.

PVP Square Mall Vijayawada with a GLA of 230,000 sft is a corner property on M.G. Road, in the heart of the city’s CBD. 

90% of Vijayawada’s retail is concentrated on MG Road. The PVP Square Mall has a Supermarket, 6-Cinemas (Cinepolis), Fashion Megastore, CDIT Megastore, Leisure Megastore (Reliance Timeout), 560-seat Food Court, FEC, QSRs’, Cafes, Restaurants. 

The PVP Square Mall has parking space for 375 Cars (3 levels of basement parking) plus additional parking for two wheelers. 

The PVP Square Mall is Promoted & Developed by PV Potluri (founder of CBay Systems, Procon, Albion Orion, Irevna and Maven; substantial investor in Karvy Consultants).

Courtesy: Mallsmarket.com