Winning Strokes: Think Different

Pix Transmission Ltd was recommended in this blog around Rs.46-47, few weeks back, the scrip raced to Rs.70.40, on 19th September, 2014. If the scrip breaks Rs.63, on the downside, then it is time to book profits and exit the counter. 

As expected realty stocks declined and closed with losses--Housing Development & Infrastructure (Rs.89.85) (down 3.18%), D B Realty (CMP: Rs.73.20 down 5%), Anant Raj (CMP: Rs.57.15, down 6.77%), Sobha (CMP: Rs.426.25, down 1.42%) and Unitech (CMP: Rs.21.95, down 10.77%) declined. Yesterday, I sent a report from the Economic Times, to my Facebook account, which had the following news: "The rapid rise in the stock market since the new government was formed has taken the sheen off real estate, where investments have not only dropped but investors are trying to monetise their existing assets, creating a scare of price correction. While the stock market has risen by over 12% since May 26 when the government was sworn in, property values have either remained stagnant or dropped in several micro-markets across the country". We could see more corrections in these counters (except those are Telengana / Andhra Pradesh based like Prajay Enginners Syndicate Ltd, CMP: Rs.12.63) hence play with strict stop losses. 

Prajay Engineers Syndicate Ltd today touched Rs.13.40, before closing at Rs.12.63. The company has huge land bank in south India, whose prices are rising rapidly, after Vijayawada was declared the capital of Andhra Pradesh. 

Resurgere Mines and Minerals Ltd is getting sold down unnecessarily. The company is waiting for approval for some of its mining proposals, from the government of India. Today, it closed at Rs.1.70, down 3.41%.

I  reiterate again, in this kind of market, it would be too risky to trade, if you are NOT an  expert or a professional trader--it because the market is too volatile now. Also, no one comes to the stock market to get a capital gain of 20% per annum. If the fixed deposits are giving a return of 10-12% per year, then what is the need to come to the market for only additional 10% gain, after taking so much risk--only morons, will think in that way. Hence, either join the Paid Service or allow my team to trade on your behalf to generate money from the markets. You should have a minimum portfolio size of Rs.2 lakhs, if you want me to trade on  your behalf. Also, from now onwards, your demat accounts will be opened in my recommended brokerage houses only after you come-up with margin cheque of at least Rs.2 lakhs (Or give an affidavit from any court of India, that they would transfer shares worth 2 lakhs) and send in the required documents in advance. It is due to my experience, in dealing with some irresponsible investors / traders who put in me false positions, in front of Brokerage House Managements; either after sending them forms on their requests (which they never fill and send back) or after opening the demat accounts. From now on, I need to be a bit strict in such matters as a section of investing / trading fraternity, tends to take advantage of my simplicity--these people lack ethics (money is  made even by prostitutes and frauds). Moreover, if everyone thinks that he/she has become stock analyst after getting success in one or two scrips, then it would be a horrible proposition. It is NOT SO EASY to make money on a CONSISTENT BASIS from stock market--hence come out of that dream and be realistic. I have an experience of more than two decades (with sources across the sectors) but still make mistakes (sometimes)---therefore, if anyone thinks that they can do the same by taking some courses for 1-2 years or after reading messages in Money Control Message board or taking some tips from somewhere, then they are probably living in fools paradise. My Paid Service is not a TIPS providing exercise, but a complete guidance to make money from the markets. If you make losses also, then it can be covered up in these kinds of markets. But one has to  have trust......

Opening Bell 23 September | Global equities lower on weak US data 

Tracking the losses, Asian markets also opened lower, but slight improvement in China flash PMI might help

Mumbai, September 23, 2013: The US markets closed lower as S&P 500 lost 0.8% to 1,994 on weaker-than-expected housing data. Home resales unexpectedly fell in August as investors stepped away from the markets, reports Reuters . 

Tracking the losses, Asian markets also opened lower. China’s flash manufacturing purchasing managers’ index (PMI) unexpectedly picked up in September even as factory employment slumped to a five-and-a-half-year low, a survey showed on Tuesday. Read more.

In a fillip to the cement industry, the government has decided to abandon bitumen—the raw material for road construction—in favour of cement for all new road projects, reports Mint . The detailed project reports for new road projects will assess the project cost factoring cement as the raw material. 

In a potential setback to the microfinance industry, the government is proposing to dilute the previous version of the Microfinance Bill introduced in 2012, reports Mint . The new version of the Bill that is being worked on is unlikely to override existing state government legislations like the earlier version proposed.

Uncertainty over the fate of subsidy payments for shipbuilders such as Pipavav Defence and Offshore Engineering Co. Ltd, ABG Shipyard Ltd and Bharati Shipyard Ltd could lift soon, with the government looking to extend the payment timeline for a scheme which ended seven years ago, reports Mint . The scheme offered Indian firms 30% subsidy on ocean-going merchant vessels. 

Government is looking to launch another exchange-traded fund with blue chip stocks like ITC Ltd, Larsen and Toubro Ltd and Axis Bank Ltd, reports The Economic Times . According to the report, the government may also add some shares of public sector companies to the fund. 

Reliance Jio Infocomm Ltd plans to use telecom towers of Indus Towers Ltd. Indus Towers is a joint venture between Bharti Airtel Ltd, Vodafone India Ltd and Idea Cellular Ltd. Read more. 

The Supreme Court-imposed cap on iron ore mining in Goa could see Sesa Sterlite Ltd producing at half its capacity once the required permissions are in place, reports Business Standard . The apex court had in April lifted the mining ban in Goa but had imposed an annual cap of 20 million tonnes on the industry, the report says. 

Ahead of the annual general meeting on Tuesday, two independent directors of Steel Authority of India Ltd (SAIL) have resigned, reports PTI . The move comes against the backdrop of removal of independent directors appointed by the United Progressive Alliance (UPA) government. 

The board of CESC Ltd has approved a proposal to raise $150 million through private placement. The money may be raised through equity shares, debentures, warrants or any other securities. Read more. 

A new business model, focus on costs, an emphasis on better customer service, and some money from its promoters has put SpiceJet Ltd on the path to recovery, reports Mint . The airline has been hit by a cash crunch. 

Lastly, Apple Inc. sold more than 10 million iPhones in the first weekend after its new models went on sale on Friday, reports Reuters . The company could have sold even more phones if supplies had been available, Apple claimed.  

Courtesy: Live Mint

Narendra Modi’s US visit has the potential to redefine Indo-US relationship

Modi’s focus in his foreign policy dealings so far has been just that – trade as the foundation of cooperation and friendship. (File Photo: PTI)

September 23, 2014: Narendra Modi’s meeting with Barack Obama at the end of this month will close a most eventful month in India’s foreign policy. The beginning of September found the Indian Prime Minister in Japan, where he secured $34 billion in investments from Shinzo Abe. Chinese President Xi Jinping’s recent visit secured another $20 billion in MoUs, though the Chinese pointedly boasted about making deals worth five times that amount. Modi’s visit to the United States will end a flurry of diplomatic activity that has involved the three most significant countries with India.

Before the general election, there was much speculation that Narendra Modi would shun the United States in favour of closer ties with India’s own neighbourhood. It was rumoured that this was partially due to a personal grudge over the US denial of a visa to him in 2005. However, the Prime Minister has received overtures from United States with unexpected warmth. This has happened without India ignoring its relations in its own region. Now, over five days, Prime Minister  Narendra Modi will address the UNGA, meet with several members of the US Senate and House of Representatives, and end his trip with two days of discussions with President Obama.

Recent hiccoughs in the Indo-US romance have caused many to question the commitment of the other side. The Obama administration is seen by many Indians as the one relegating relations with the world’s most chaotic democracy to the doldrums, after its heyday during the George W Bush White House, while Washington feels insufficiently acknowledged for bringing India in from the nuclear cold and opening its defence market to the country. It is hoped that Modi’s meeting with Obama will be able to smooth ruffled feathers of bureaucrats and politicians at home as well as abroad.

If previous behaviour is any indication,  Narendra Modi will focus primarily on economics. He will raise the issue of work permits for Indians (H1 visa), seek US investment in India’s infrastructure, and invite assistance in improving India’s manufacturing potential. Admittedly, there are quite a few disagreements between the two estranged democracies as the WTO deal proved last month. The challenge will be for both the countries to take stock of the other’s position ideologically and politically as well as recognise the different stages of development, prosperity, and demographics the two find themselves in.

The United States has recently expressed willingness to begin joint defence production with India and doing so would allow Delhi to join the lucrative global armaments supply chain. The technology transfer and manufacturing experience would boost its own production as well as introduce India’s services in upgrades and maintenance to the world’s armed forces. With Modi Sarkar contemplating an entry into the arms trade, defence manufacturing would be a strategic investment.

For United States, which has been eager to see India take up a greater role in Afghanistan, the sale of Indian weapons to Kabul is much desired. It will balance the influence of Beijing and Moscow on Kabul as well as help keep the Taliban at bay. Washington must have by now accepted the idea of Indian boots on the ground as unrealistic and providing material, training, and intelligence support to Afghanistan will have to suffice. There is a silver lining to this arrangement – Foggy Bottom’s naughty little friends in Islamabad will have less to be paranoid about than if they saw Indian troops on two fronts.

There are more economic disagreements between India and the United States than is sexy for the Press to cover. India’s tax system, intellectual property, US labour laws, pharmaceutical testing, immigration, the WTO, and protectionist trade barriers are just a few of the concerns businessmen in both countries have. The recent nomination of Richard Verma as the US ambassador to India is a welcome move and if confirmed, Verma will have his hands full with economics rather than his specialties, non-proliferation and national security. Interestingly, defence cooperation which, only a couple of years ago, was seen as the benchmark of good relations, will be important but less meaningful than the economic agenda.

Another item of interest to India is LNG exports from the United States. With increasing troubles in the Middle-East and several India’s assets in Syria, Iraq, and Sudan overrun by strife, Delhi is looking to diversify its purchases. Iran is not yet a viable option and pipelines from Central Asia would have to either connect to Chabahar via India’s much vaunted but as yet incomplete International North-South Trade Corridor or pass through the hostile territories of China or Pakistan. Until Chabahar and the INSTC are operationalised, the United States is the best medium-term option for energy. Presently, US gas is available only to countries with which the United States has a Free Trade Agreement. The Gas Authority of India (GAIL) received a special dispensation three years ago but Indian business is hoping  Narendra Modi can persuade the US to issue a complete waiver.

Perhaps, the single greatest issue for the United States during these talks will be the operationalisation of the nuclear deal. Unlike boring trade talk on solar panels, textiles, farm quotas, subsidies, or insurance sector reforms, India’s nuclear industry is not just a big-ticket item and public symbol but also an enormous business opportunity. Talks with Delhi have so far been lifeless on six Westinghouse reactors for Chhaya Mithi Virdhi and another six reactors from General Electric for Kovvada due to India’s unconventional nuclear liability law that holds reactor suppliers as liable as operators.

An agreement on nuclear energy will have tremendous multiplier effect – not only will it spur industrial growth and domestic personal consumption but the chances of a nuclear agreement seeing some aspects of the manufacturing supply chain move to India are high. The deal will also put pressure on Japan for a quick agreement on nuclear cooperation with India as both Westinghouse and GE are partnered with Toshiba and Hitachi.

The disappointed editorials in newspapers and blogs in India and the United States betray a palpable impatience for relations between India and the United States to improve rapidly. For the United States, a close ally in India renews the global order of Western-style liberal democracy. For India, the US economy is the quickest path to development and prosperity. After decades of Nehruvian economics, a young and aspirational India no longer has the patience to wait for state-planned growth.

However, Delhi has no intention of becoming another US’s England. India has its own interests, which do not always align with those of the United States; processes by which it will do things; and a domestic audience which it has to keep placated. At best, Washington can expect India to be another France – difficult and exasperating, but an ally nonetheless. Similarly, India will have difficulty in convincing Foggy Bottom of setting Pakistan adrift. This will affect not just Kashmir and the South Asian nuclear balance of terror but also Afghanistan.

Both countries will occasionally be perturbed by the other’s positions on global events. Yet these disagreements need not derail relations every time if handled maturely and if some notion of sphere of influence is respected. The most important thing the two nations can do to bring themselves closer is boost contact through trade, education, tourism, governmental official exchange programmes, or even through regular joint military exercises. Indians and Americans must get to know each other beyond the occasional and sensational headline in the newspapers and on the television. Modi’s focus in his foreign policy dealings so far has been just that – trade as the foundation of cooperation and friendship. If that can be achieved, it may just be the beginning of a beautiful relationship.

Courtesy: NITI Central

PM Modi's US visit: Defense partnership and economic relations to remain top agenda 

New Delhi, 23 Sep, 2014: Defence and security partnership, energy including renewable energy relations and economic and investment ties and technology transfer will dominate Narendra Modi's maiden visit to the USA as Prime Minister that is widely expected to correct sentiments in the India-US relations that have been soured since 2011. 

On his longest trip abroad since taking over as the PM, Modi leaves for USA on September 25-26 for nearly seven days during which he will give his maiden speech at UN General Assembly on September 27 in New York and then proceed to Washington for the summit meeting with President Barack Obama on September 30. 

All eyes are set on that meeting when Modi is also expected to raise concerns over US Immigration Bill that will affect Indian IT industry if passed in the current form. The Border Security, Economic Opportunity, and Immigration Modernization Act (S 744) imposes new and onerous restrictions and higher fees on H-1B and L1 visa programmes on the international IT services sector and would create an uneven playing field.

Modi's visit is also expected to iron out bilateral differences over Intellectual Property Rights particularly in the pharmaceutical industry, official sources told ET. Big ticket items for the visit include expansion in the defence partnership to not only launch joint production of equipment but also sharing perspectives on West Asia and East and Southeast Asia, sources indicated. 

Joint production and co-development that entails technology transfer is Modi's mantra to attain self-sufficiency in the defence sector in the long run. India has deep interests over energy security and its diaspora in West Asia where Arab Spring followed by radical ISIS movement has been destablising factors. Meanwhile, China's growing ambitions in East and Southeast Asia have been a matter of concern for both India and USA.

Among regional issues, situation in the Af-Pak region will dominate discussions, sources pointed out. India's energy demands are rising by the day and Modi will make efforts to source more energy from Washington including partnership in solar energy and importing LNG and shale gas. There willfolbe considerable focus on clean energy partnership, an official said. While Modi would seek transfer of high-technology from the USA, the Obama administration would be keen to hear from him an environment conducive for investments after the policy paralysis in India since 2011, sources indicated. 

US is interested in the agriculture and food processing sectors including coldchains. Besides, interest is growing in USA about investments in industrial parks or zones, and water purification, water management and energy from waste as part of smart city projects in India. "The US administration and senators are looking forward to a visit that will energise the relationship and expect that Prime Minister Modi could give them a confidence to further expand and deepen ties," averred Robinder Sachdev, head of the India chapter of US India Political Action Committee, one of the influential India-American lobby groups said.

There are also indications US firm can invest in the Modi government's campaign to Clean India. Education, especially community colleges by USA in India could be one of the deliverables from the visit. Modi and Obama will also discuss India's nuclear liability law and ways to address concerns of US nuclear major Westinghouse. 

Courtesy: The Economic Times

Govt likely to extend shipping subsidy period 

Tuesday, September 23 2014: Extension will benefit shipyards that are still building ships under contracts signed when the scheme was on, and even for some which have already delivered ships but awaiting subsidy.

Bangalore: Uncertainty over the fate of subsidy payments for shipbuilders such as Pipavav Defence and Offshore Engineering Co. Ltd, ABG Shipyard Ltd and Bharati Shipyard Ltd could lift soon, with the government looking to extend the payment timeline for a scheme which ended seven years ago. Under the scheme which ended on 14 August 2007, ships of certain specifications would be eligible for a 30% subsidy. In 2009, the government agreed to extend the timeline for paying subsidies till March 2014. 

An extension now will benefit shipyards which are still building ships under contracts signed when the scheme was on, and even for some which have already delivered the ships but are waiting for the subsidy. If the order comes, this would be the second such extension. 

“A budgetary provision up to 31 March 2014 only was approved by the government (in March 2009). The process of holding inter-ministerial consultations regarding extension of timelines beyond 2013-14 for payment of subsidy to Indian shipyards in respect of shipbuilding contracts signed up to 14th August 2007 has been initiated,” a spokesman for the shipping ministry said. 

The scheme offered Indian firms 30% subsidy on ocean-going merchant vessels over 80m made for the domestic market; export-order ships of all types and capacities were eligible. Public sector yards get the subsidy in instalments; private firms after the ship is built and delivered to the buyer.

“Non-availability of subsidy on confirmed orders signed before 14 August 2014 would have impacted the financials of shipbuilders,” said a spokesman for the Shipyards Association of India, an industry lobby. Bharati Shipyard, for instance, is yet to get Rs.660.6 crore in subsidy. “The receivables have been budgeted as per the subsidy scheme of the government. 

We have been complying with the terms of the scheme,” Prakash Kapoor, MD, Bharati Shipyard said on 8 September. Under the scheme, the CCEA had asked the defence ministry to make budgetary provisions for defence shipyards under the administrative control of ministry, process their cases of subsidy and release funds to them. The cash-strapped centre has resisted demands from shipbuilders for re-introducing the subsidy scheme. Instead, the shipping ministry is working on a comprehensive policy to promote the local shipbuilding industry as announced by finance minister Arun Jaitley in his budget speech on 10 July, including setting up a Rs.15,000 crore corpus for extending cheaper funds to shipbuilders. “Shipbuilding is a big opportunity today,” 

Prime Minister Narendra Modi said on 16 August during the foundation stone ceremony for a special economic zone (SEZ) and road connectivity project at Jawaharlal Nehru Port Trust located near Mumbai. “India’s contribution to global shipbuilding has been very low. South Korea, a very small country, smaller than the state of Maharashtra today alone has a 40% share of global shipbuilding. We want to encourage shipbuilding,” Modi said. Elaborating on his theme of “Come, make in India”, which he mentioned during his Independence Day address, Modi said his government will encourage foreign investment in shipbuilding.

Courtesy: Live Mint

Defence deals: India caught between Russia and US

Monday, September 22, 2014: After his highly successful Japan visit, which saw the two sides signing the Global Partnership Deal, Prime Minister Narendra Modi is set to embark on a big-ticket visit to the United States later this month. The visit holds significance as it not only aims at renewing the not-so-warm Indo-US ties but also comes at a time when India’s decades old ally Russia has been increasingly isolated, forcing New Delhi to look for more reliable global partners for its future military and technological needs.

While in the recent past, top western envoys have been rushing to India to woo PM Modi with the sole objective of bagging billion-dollar contracts with the new government, which has taken a big decision of opening the defence sector to foreign investment, the new NDA regime is also caught between two tough choices.

One - how long can India depend on Russia for its growing military needs to counter threats emanating from two hostile neighbours China and Pakistan, and second - which other country can provide it the cutting-edge technology and meet India’s long term defence equipment requirements.

For over five decades, India has been largely dependent on Russia for its military preparedness. But the warmth and vibrancy in the time-tested and very cordial Indo-Russian ties is somewhat evaporating. India’s growing clout in the international community and the fast changing geopolitical matrix has pressed New Delhi to further cement its relationship with Washington and other Western nations, which are willing to offer what Moscow is increasingly failing to deliver - high precision sophisticated weaponry at relative cost.

The delay in transforming the modified Kiev-class aircraft carrier Admiral Gorshkov into the INS Vikramadtiya and its exceeded cost has badly hurt Russia’s reputation. Though, India had not sought fines from Russia for the inordinate delay in supplying Gorshkov, which was handed over to the Indian Navy last year, this failure has deteriorated the Russia-India military ties.

Russia's recent offer to sell Mi-35 attack helicopters to India's arch-rival Pakistan has further dealt a major blow to the Indo-Russian ties.

Further, series of crashes involving mostly Russia-made MiG 21 and MiG 29 fighter jets, a slew of kickback allegations, procurement delays have marred government’s efforts to upgrade its armed forces. There is a growing urgency in India to upgrade its Soviet-era military weaponry to counter China, which has forced it to look beyond Russia.

Another big factor, which has compelled New Delhi to weigh more options is the willingness shown by the Western countries to offer latest technical know-how along with the clause to co-develop and manufacture hi-tech defence equipments in India to which Moscow never agreed until recently.

Hence, it came as no surprise when the United States piped Russia as India's  top defence supplier earlier this year. This also points to a big shift in India’s defence policy to look at the United States, United Kingdom, France and Israel for major military procurements.

This also implies that Moscow will gradually lose its competitive edge in India and its arms exports to the latter will continue to shrink further, while Moscow’s western rivals may scale up their defence cooperation with India.

According to defence analysts, India - the world's largest arms importer - is poised to spend $250 billion in the next decade to modernise its armed forces by acquiring more lethal weapons and combat jets and son on to keep the “expansionist” China, which spends $120 billion a year on its military preparedness, at bay.

India spent nearly $6 billion last year on weapons imports, though its state-run firms cater to some extent to its defence requirements by manufacturing tanks, small helicopters, ballistic missiles and assembly lines for foreign jets. The Modi government’s recent decision to raise cap on FDI from 26% to 49% in the defence sector, allowing foreign manufacturers to build more defence components without licences, will further make it easier for Indian firms to partner foreign firms.

Prime Minister Modi has laid out an ambitious plan to sharpen the country’s combat capabilities and transform India from the world's largest arms importer to a major defence equipments manufacturer - something which has been a distant dream of every prime minister since independence. And for this, New Delhi needs access to the highest technology and know-how, which Moscow lacks.

PM Modi’s military modernisation plan and his desire to see India as a major regional player has thrown indications that the country’s defence sector is set to undergo a vast change in the days to come. India is also likely to bargain hard with the foreign vendors in future to ensure technology is transferred and some components are developed in India by big domestic players in the sector.

In the past few months, French Foreign Minister Laurent Fabius, US Senator John McCain, Britain’s Foreign Secretary William Hague and Finance Minister George Osborne, US Secretary of State John Kerry, Secretary of Commerce Penny Pritzker and Defence Secretary Chuck Hagel visited India to court Modi with lucrative defence deals. All this also points to the growing competition between the top countries to win billion-dollar defence deals with India to absorb the arms and ammunition manufactured by their respective companies.

India also wants to use its “vast arms market” status to its advantage.

When Modi visits United States, President Barack Obama’s team will try to revive Indo-US defence trade, which had dropped sharply during the second term of the Congress-led United Progressive Alliance (UPA) government. US government officials will certainly push hard for $2.8 billion in delayed sales of Boeing's Apache attack and Chinook military transport helicopters to be among the first completed under the new regime. The $1.4 billion order for 22 AH-64D Apaches was first approved in December 2010 and a separate deal for 15 heavy-lift CH-47F Chinook helicopters is valued at $1.4 billion.

If the Defence Ministry sources are to be believed, the government is also determined to acquire Boeing's Chinook and Apache helicopters - a deal that can revamp the strained ties between New Delhi and Washington. Significantly, the Defence Acquisition Council has also cleared the last hurdle for signing of the contract with the US in respect of Apache and Chinook. The deal topped the agenda during Chuck Hagel’s August visit, which laid the ground work for Modi-Obama meet on September 30.

During his stay in India, Hagel met Defence Minister Arun Jaitley, Foreign Minister Sushma Swaraj and PM Modi, besides the top executives of Indian defence companies like Bharat Forge, L&T, Mahindra Group, Tata Sons, Reliance Industries, Pipavav and American defense companies in India like Honeywell, Raytheon, and Textron.

During talks with his Indian interlocutors, Hagel pushed for defence deals worth more than $7 billion, including the stalled mega deals for M-777 ultra-light howitzers and Javelin anti-tank guided missiles (ATGMs). The US bagged Indian defence deals worth $10 billion in the last decade and edged past Russia as India’s number one defense supplier. But the greed is growing among  American arms manufacturers, who want to expand the US defence export to India by including helicopters and UAV’s (unmanned aerial vehicles).

Besides, signing the $2.8 billion deals for Apache and Chinook helicopters, other defence deals, which the two sides are likely to sign is 145 ultra-light M-777 howitzers (worth $885 million).  These howitzers are meant to be deployed by India’s new mountain strike corps which will essentially be China-centric. However, the Indian side is not too inclined to off-the-shelf purchases, and would instead push for arrangements that would galvanise Indian defence industry in partnership with US firms.

However, all depends on circumstances under which Modi and Obama meet and what concessions Washington offers to India.

Courtesy: Zee News

Prajay Engineers Syndicate Ltd: Will it become a dark horse in 2014-15?

According to the Hindu, September 22, 2014:  Potential investors considering investing in the capital region of Andhra Pradesh are in for a shock as the realty market around Vijayawada is competing with that of California, in the U.S. 

Prajay The Nest is a residential development. This is one of the completed projects of Prajay Engineers Syndicate Ltd. The project has a thoughtful design and is well equipped with all the modern day amenities as well as basic facilities. The Nest is located in Vijayawada Highway, Hyderabad. 

Prajay Engineers Syndicate Ltd, has a land bank of almost 738 acres. Prajay has currently, extended its presence to Vishakhapatnam, developing over 35 projects with 18 million square feet under construction.  

Located in Moosapet, Prajay Velocity Mall has 582,000 square feet of saleable space plus almost 322,000 square feet of multi-level car parking space. 

Celebrity Hospitality Services (the hospitality division of Prajay Engineers Syndicate Ltd.), has been providing unparalleled service in the hospitality industry for the past 8 years.

Rs.25,000 Cr Navy tender for pvt sector

Photo: Sagar Sandesh

[Editor: Pipavav Shipyard was the first corporate shipyard to be granted clearance to build warships and other vessels for the Indian Navy, though the initial licence limits, up to 5 ships per year. Moreover, since the  name of ABG Shipyward Ltd is involved, it would definitely have a positive rub-off effect on the share price of Western India Shipyard Ltd (Rs.1.88)]

NEW DELHI, Monday, September 15, 2014: Seeking to build capabilities of Indian private sector warship builders, the Defence Ministry has rejected the plea of a state-owned shipyard to participate in the Rs 25,000 crore project to construct four amphibious warfare vessels for the Indian Navy.

The Defence Ministry has decided that only private sector shipyards, including Pipavav, ABG and L and T, along with their foreign partners, would be allowed to take part in the Rs 25,000 crore project for building the four Landing Platform Docks, Navy sources told PTI here.

The Navy had issued tenders to these three private shipyards last year and decided to keep out Cochin Shipyard Limited (CSL), saying it was building the 40,000-tonne Indigenous Aircraft Carrier and it should focus on that major project only for the moment.

However, CSL approached former Defence Minister A K Antony through the Ministry of Shipping and the deal was put on hold.

Courtesy: Afternoon

Will grow order book significantly going forward: Nikhil Gandhi, Pipavav DOC 

[Editor: Pipavav Defence and Offshore Engineering Ltd (CMP: Rs.43.65) was recommended today during the market hours at Rs.44, for a price target of Rs.51-52. According to Business Today, July 27, 2008: One day in the early 1990s, Nikhil Prataprai Gandhi was almost beaten to death by a mob protesting against the development of a port at Pipavav in Gujarat. The port was conceptualised in 1990 by SKIL Infrastructure, a company Gandhi founded with younger brother Bhavesh. Gandhi was badly wounded in that attack. After he came out of hospital, he visited Shirdi in Maharashtra to offer prayers at Saibaba’s shrine. In Shirdi, he befriended a Saibaba follower who, in 1992, introduced Gandhi to the late Dhirubhai Ambani, founder of the Reliance group. That meeting changed his life. “If Dhirubhai uncle had not helped me, I would have been dead,” says Gandhi. Ambani taught Gandhi the virtues of identifying growth-oriented ventures ahead of their time, and executing them on time. The Reliance patriarch would joke that Gandhi was a member of the “zero club”, which meant that he had only one way to go—up.
That’s exactly the direction in which the 48-year-old (now 54 years), self-styled “infrapreneur”—an entrepreneur with a focus on infrastructure—has been headed over the past two decades. Gandhi is stingy with the numbers, preferring to point to a study of the SKIL group’s investments by Ernst & Young, which values them at a little over $10 billion as of December 2007. A section of the market dismisses him as a front for Mukesh Ambani (son of Dhirubhai), but Gandhi is quick to retort: “I am a self-made man.”]
ET Now: How have things changed on the ground with regards to decision-making and order inflows for you as a company? 

Nikhil Gandhi: After taking over, the new government had sent a very strong signal that it believes in action. It made clear that it wants to fire up manufacturing in India, which is extremely critical. India will have to be self-sufficient in defence, for which the local production houses need to be encouraged and supported. This requires technology, which in turn needs FDI. Our long pending demand has been the opening up of FDI in defence and I am glad that the new government has been sensitive and sincere about making India self-sufficient insofar the defence sector is concerned. I believe, no country in the world can become developed unless its national security is firmly in place. 

ET Now: Where does your order book stand right now? 

Nikhil Gandhi: We have been a heavy net importer, both in naval defence and offshore. So the opportunity is humungous. We only required some encouragement by the government and we have been seeing that in the last few months. The critical factor is to build a world class infrastructure, which should be globally competitive. Therefore, the recipe for success is - the Indian entrepreneur will have to be sensitive and sincere in building the infrastructure and the assets on time without any cost overrun. 

ET Now: What is the growth opportunity you see across ship building, offshore as well as defence segments over the next couple of years? 

Nikhil Gandhi: The growth opportunity is large. For example, today the requirement in the oil & gas and defence sectors runs into hundreds of billions of dollars over the next five-six years. But we need to have the infrastructure to cope up with these demand. With the new policy in place by the Government of India, there will be many Indian entrepreneurs who would be setting up these facilities to take advantage of these multibillion dollar opportunities, knocking right on their doors.

ET Now: You have a JV with Mazagon Dock which provides you exposure towards a 20-billion order book. With the government ramping up indigenous capacities, what can we expect from this JV? 

Nikhil Gandhi: The joint venture is an interesting part, because the facilities at Mazagon Dock are probably smaller compared to their order book. Wherever they think important and necessary, they will partner with a company like Pipavav and make sure that the contracts are executed on a fast track basis. However, Pipavav on its own has a good order book and is bidding for some large contracts - both in defence and oil and gas sector assets. We think we will be self-sufficient in bidding for those contracts 

Courtesy: The Economic Times

Indian Navy commissions final Saryu-class OPV

[Editor: Risk taking  investors can buy Pipavav Defence and Offshsore Ltd at Rs.44 for a target of Rs.51--54, in the short term. Last month there were media reports that Government of India has notified an increase in FDI (Foreign Direct Investment) limit to 49% through approval route in the DEFENSE sector. The move is aimed at boosting domestic industry of the country which imports up to 70% of its military hardware. FDI ceiling in the sensitive defence sector was hiked from current 26%, with the condition that the company seeking permission of the government for FDI up to 49% should be an Indian company owned and controlled by Indians. Further, foreign direct investment proposals above 49% will have to seek the approval of the Cabinet Committee on Security on "case to case basis, wherever it is likely to result in access to modern and state-of-the-art technology in the country," according to the press note of the Department of Industrial Policy and Promotion (DIPP)]

Photo: The Economic Times

04 September 2014: The IN claims over 90% of the 105-m long, 2,200 tonne, locally designed OPV is indigenously sourced.

"We have transformed from a buyers navy to a builders navy" IN Chief of Staff Admiral R K Dhowan declared at the commissioning ceremony.

"The blue print for the IN's future is anchored on self-reliance and indigenisation and presently we have 41 ships and submarines under construction in public and private sector shipyards" he added.

Built at a cost of INR7 billion (USD116 million) by Goa Shipyard Limited (GSL) and powered by two licence-built SEMT Pielstick diesel engines, Sumitra has a maximum speed of 25 kt, an endurance of 3,240 n miles and can remain deployed for over eight weeks without replenishment, the IN claims. It is capable of embarking one helicopter.

With a 114-member crew, including nine officers, it is armed with an Oto Melara 76/62 Super Rapid Gun, two Russian-made AK-630M close in weapon systems and six chaff launchers.

Its electronic warfare suite comprises the locally designed Sanket Mk III Electronic Support Measure and Israel Aerospace Industries ELK 7036 Communication Intelligence systems.

GSL is building six similar OPVs for the Indian Coast Guard for INR18 billion, deliveries of which are scheduled to begin in October 2015 and be completed two years later.

COMMENT

The IN is also procuring five naval OPVs from Pipavav Shipyard in a deal that has had a tortuous history. Named in June 2010 as preferred vendor to supply the vessels, Pipavav signed a INR29.75 billion (USD553 million) contract with Russia in May 2011 for five naval OPVs. However, the deal ran into problems primarily over price concerns and was terminated some time in 2012.

US firm Alion Science and Technology Corporation said in an investor presentation filed with the US Securities and Exchange Commission on 19 June 2012 that it was pursuing a "firm-fixed-price contract to design an Offshore Patrol Vessel (OPV) for an Indian shipyard". Indian sources said that Pipavav had signed a contract with Alion later in the same year.

While Pipavav refused to comment, with a company official saying that "we do not release such privileged commercial details", IN sources said the first of five vessels is scheduled for commissioning around December 2015/early 2016 for a lesser price than that agreed with Russia.

Courtesy: IHS Jane's Defence Weekly

NCC in talks to sell road project

E Sudhir Reddy,  CMD, IVRCL Ltd
Photo: Stock Explain

Hyderabad, September 19, 2014: With the investor sentiment improving in the country, city-based construction company NCC Ltd is talks to exit one of its four BOT road projects and expects to clinch a deal by the end of this year.“We are planning to exit two out of four BoT road projects. Out of two, we are currently in talks with potential buyers for one project and a deal could happen by the end of this fiscal,” said NCC executive vice-president (finance) Y.D. Murthy here.

The two road projects that the company is planning to exit are Western UP Tollways and Bangalore Elevated Expressway. 

After years of high growth, the Indian construction companies are scrambling to sell their BOT projects as high interest costs and low efficiency of their projects threaten to push parent companies towards severe financial strain.

NCC is not the only construction company that plans to exit its BOT road projects. 

IVRCL had said that it has put all its BOT projects on the block, Ramky Infra is also in talks to exit its road projects. GMR Infra, meanwhile, has terminated its contract to build around Rs.6,000 crore road project.

Apart from the monetisation of its road projects, NCC is going to pare debt from the proceeds of its upcoming rights issue. “We are launching our rights issue, which will open on September 29 and close October 17,” he said. Post rights issue, the company’s standalone debt will come down to Rs.2,000 crore from the current Rs.2,600 crore as the construction major looks at trimming its interest costs. 

Courtesy: Deccan Chronicle

Winning Strokes: Think Different

PVP Ventures Ltd (Rs.9.62) recommended around Rs.8.25 and then again at around Rs.6.50, made a new 52-week High (adjusted) of Rs.11.59 on 12/09/2014. I hope most of you have made money from this call. 

Yesterday, IVRCL Ltd was recommended as a fresh buy at around Rs.17.90, the scrip today touched Rs.18.90, before cooling down at Rs.18.60. The government of India is expected to ease norms for FDI in the construction sector--IVRCL Ltd (Rs.18.60), HCC Ltd (Rs.36.15), Punj Lloyd Ltd (Rs.40.55), etc. could be some of the biggest beneficiaries. Meanwhile, according to the Indian Express, 10 September, 2014: 

A  year after starting the tendering process for the Colaba-Bandra-Seepz Metro, billed to be the country’s longest underground Metro rail corridor, the Mumbai Metro Rail Corporation (MMRC) has now finalised a list of nine consortia eligible for financial bidding after scrutinising pre-qualification tenders. Intending to finalise contracts and start work by the year-end, the MMRC will issue Requests for Proposals (RFP) to the nine pre-qualified firms in the next few days. A total of 14 consortia had submitted pre-qualification bids for the Colaba-Bandra-Seepz Metro. The nine consortia declared eligible are AFCONS Infrastructure Ltd-Kyivmetrobud, DOGUS-SOMA, CEC-ITD Cementation India-Tata Projects Ltd, IL&FS Engineering and Construction-China Railway 25th Bureau Group, J Kumar Infraprojects-China Railway Engineering Group Co, Larsen & Toubro-Shanghai Tunnel Engineering Company, OSJC Moscow Metrostroy-Hindustan Construction Company, Pratibha Industries-Guandong Yuantian Engineering and Unity Infraprojects Ltd-IVRCL Ltd-China Railway Tunnel Group.

Today Kolte-Patil Developers Ltd was recommended to the Paid Groups around Rs.190-193. The scrip today closed flat at Rs.189.80.

Today, Oswal Greentech Ltd (Bindal Agro) touched Rs.34.35, before closing at Rs.33.45. The scrip today moved up with good volume. The real estate and investment related scrips are expected to shine in the coming days, due to obvious reasons. Moreover, the name of the company Oswal Chemicals & Fertilizers Limited did not match the activities of the company. Therefore, the company had changed the name of the company to “OSWAL GREENTECH LIMITED”. The changed name of the company was confirmed and recorded by the Registrar of the Company, Punjab w.e.f. 23rd November 2011.

Western India Shipyard Ltd today moved by more than 6% and closed at Rs.1.89. The company is likely to get benefited from the commencement of mining in Goa. Once the mining starts in Goa, then the whole of mining and shipping sectors, would get tremendous sentimental boost. 

I have already said this a number of times earlier in various platforms, and is again reiterating: The shares from the Indian Auto sector are highly overvalued (Industry P/E is more than 248) according to my estimates, but still most of them are rising, SURPRISINGLY. It reminds me of DOTCOM CRASH in 1999-2000, when also the IT sector valuations were thought to be invincible; before everything crumbled like NINE PINS. 
Yesterday,  HDIL was recommended at Rs.86.25, to the Premium Service members. The scrip today touched Rs.93.90 Intra-day, before closing at Rs.93.40, up 9.24%.

OSWAL GREENTECH LTD (Formerly Oswal Chemicals & Fertilizers Ltd): Update

CMP: Rs.32.50

• Management has decided to convert land and building, Plant and Machinery and Furniture and Fixtures owned by the companyat Tilak Marg of Rs.11,676.43 Lacs (Rs.116.76 Cr) held as inventory into fixed assets and the same is being used for official purposes.
• The company has incurred an expense of Rs.4040.50 Lacs (PY Rs.4,040.50 Lacs) on the development of commercial cum residential project at Chembur land at Mumbai (Bombay) pursuant to agreement with Oswal Agro Mills Limited (OAML). In accordance with the agreement, OAML has to contribute its land and the company is required to incur all development expenses of the project with the understanding to share the ownership of the Chembur project in an agreed ratio. The construction/development of the project was stayed by the Hon’ble Supreme Court of India vide order dated 10.12.2013 stating that the same land can be used for the purpose of Agro Industry or any other permissible industry under the current regulations. The management is exploring the possibilities to use the land in question as per the permissible regulations and accordingly is of the view that the amount spent on the project will be fully recovered from the future projects.
• Oswal Chemicals & Fertilizers Limited (BINDAL AGRO, CMP: Rs.33.35) will have Annual General Meeting on 18 September, 2014. During the year FY14, the Company carried on the activities related to development of Real Estate and Investments. The company is taking up three projects in Ludhiana for development of about 15,00,000 sq.ft. of built up area. The Company expects good demand of residential apartments in this ever growing city. The company has also earned interest income from the funds which are temporarily invested in various financial institutions/securities/fixed deposits. At present, the company is operating in the business of Real Estate, Investment activities, Fertilizer and trading in shares/commodities/Goods as separate Business Segments. According to the management. relative absence of large number of organized players in the Real Estate business segment provides an excellent opportunity to the company, to become a leading player in this industry. The management has extensive experience in setting up large industrial projects in a timely manner and this experience can be leveraged to build a strong and sizable presence in the real estate business. 
• The business segment is the primary segment of the Company consisting of: (i) Investment Activities (ii) Trading Goods and (iii) Real Estate
• Aggregate Market Value of Quoted Investments==> Rs.6,743.03 lakhs.
• Aggregate Cost of Quoted Investments ==>Rs.2,444.33 lakhs.
• Aggregate Cost of Un-quoted Investments==>Rs.6,571 lakhs (Rs.4071.88 lakhs).
• Aggregate provision for diminution in value of Investments Rs.1,418.72 lakhs (Rs.1,403.72 lakhs).

Oswal Chemicals & Fertilizers Limited: Buy

CMP: Rs.35.35

The company is presently known as Oswal Greentech Ltd (NSE Code: BINDALAGRO). At present, the company is operating in the business of Real Estate, Investment activities, Fertilizer and Trading in shares/ commodities/ Goods as separate Business Segments.

The sudden fall in the profitability was due to stoppage of work under the joint development agreement with M/s. Oswal Agro Mills Ltd. for the development of land at Chembur, Mumbai for residential and commercial complexes, as per the order of Hon’ble High Court of Mumbai. 

As the project at Chembur, Mumbai was shelved indefinitely till the decision on the petition of M/s. Oswal Agro Mills Ltd. before the Hon’ble Supreme Court of India is received. The company is informed that the hearing in the case by Hon’ble Supreme Court of India is completed and the judgment is expected soon. The company is seriously considering diversification in the field of power, energy and natural resources and is under discussion with experts of respective fields. The future outlook in the case of Real Estate looks encouraging.

Aruna Oswal of Oswal Chemicals and Fertilizers Ltd last month announced the launch of a health care project for rural women in and around Ludhiana. She said the programme would be conducted by a able team of the Mohan Dai Oswal Cancer Hospital. The family is already running educational institutions to provide education to the underprivileged sections of society. Chief minister Parkash Singh Badal asked Aruna to give a detailed project report so that the state government could join them in this venture. He also requested her to come up with more projects for the state.

Net profit of Oswal Green Tech declined 39.46% to R.10.05 crore in the quarter ended June 2014 as against Rs.16.60 crore during the previous quarter ended June 2013. Sales reported to Rs.0.92 crore in the quarter ended June 2014. There were no Sales reported during the previous quarter ended June 2013.

Oswal Green Tech is holding 14.17% stake in NDTV Ltd (Rs.109.80). The share price of NDTV Ltd hit 20% upper circuits today.  

Oswal Green Tech Ltd, the Delhi-based chemicals and fertilisers company, acquired 14.1% stake in television broadcasting major NDTV Ltd for about Rs.24 crore through open market transactions in 2011. Through bulk deal transactions on the National Stock Exchange, Oswal Green Tech purchased a total of 91,36,894 shares of NDTV at a price of Rs.26.64 a piece, which appreciated by more than 4 (four) times during the last few years. 

Oswal Greentech Limited mainly develops and promotes residential and commercial real estate properties in India. It is also involved in the trading of shares/commodities/goods; and investment activities. The company was formerly known as Oswal Chemicals & Fertilizers Limited and changed its name to Oswal Greentech Limited in November 2011. Oswal Greentech Limited was incorporated in 1981 and is based in New Delhi, India.

Vijayawada, new Andhra Pradesh capital, set to witness real estate boom

[Editor: The Real estate prices are set to skyrocket around Vijayawada following this announcement by Andhra Pradesh government. PVP Ventures Ltd (Rs.7.70) could see a sudden SPURT in its share price.The company possessed a 70-acre land parcel - popularly known as Binny Mills - in the heart of Chennai (Just 3.5 kms from Chennai central railway station)--this project will be fast tracked. The Company also owns 135 acres of land in Shamshabad, Hyderabad, through its subsidiary and affiliate companies. The company targets to line up projects aggregating to USD One billion (~Rs.6100 Cr) in the ensuing five years across South India. Its strategic partnership with Arihant, Unitech in real estate and urban infrastructure areas gives the necessary cutting-edge advantage. The Company has zero external debt--a big asset in a cash intensive business and cash starved-economy. According to a Tehelka report, Potluri purchased stake in Jagan's businesses and was later awarded land by the Andhra Pradesh government. Potluri, reportedly, bought 13,88,888 Jagati shares held through PVP Business Ventures Pvt. Ltd and was allotted disputed land in Nadergul, Ranga Reddy district. Potluri Vara Prasad, the CMD, hails from Vijayawada, Andhra Pradesh and is the co-founder of the Engineering school, Prasad V. Potluri Siddhartha Institute of Technology. He owns, PVP Energy, PVP Cinema and PVP Foundation under PVP Ventures] 

Photo: NDTV Ltd

September 4, 2014: Real estate prices are set to skyrocket around Vijayawada following announcement by Chief Minister N Chandrababu Naidu-led Andhra Pradesh government that the new capital would be located "near" the second largest city of the residuary state.

The land prices started shooting up in the region after media reports indicated that the area is "being considered" for locating the new seat of power of Andhra Pradesh which lost Hyderabad to newly-formed Telangana State.

A Siva Reddy, Vijayawada chapter President of Confederation of Real Estate Developer Associations of India, said property prices within 25km radius of the coastal city in Krishna district have doubled during the past few months.

"Ever since the division of State was announced, land prices started shooting up between Vijayawada and Guntur. Prior to the announcement, the prices used to be around Rs 1 crore per acre and now they have gone up to Rs 4 crore. Rates are expected to rise further," Reddy said.

The rush to buy land in and around Vijayawada had gone to such an extent the Government had to intervene and issue orders banning conversion of agriculture land into residential plots in part of Krishna District, said M Ramakrishna, Proprietor of Sri Gayatri Real Estates.

"With today's announcement, the land prices are set to skyrocket as most of the realty sales had been put on hold pending clarity from the Government on capital city. Now that the air has been clear, Vijayawada will witness real estate boom," Ramakrishna said.

Barring some small residential plots, no major land dealings have taken place "officially" for the past few months, he added.

However, the task of acquiring adequate land for building capital may not be easy for the government given the prices prevailing there, a senior official said.

There is no clarity yet on the quantum of government land available in the area and also the amount of real estate that needs to be acquired to build the necessary infrastructure, he added.

Courtesy: The Financial Express

Ashok Leyland Ltd: Sell

Ashok Leyland Ltd (Rs.37.35) has a whopping market cap of Rs.10,643.58 Cr, which is near the total FY14 earnings of Rs.10,009.95 Cr. Besides it is already trading at 2.38 times its book value of Rs.15.69. The dividend yield at the current price is only 1.60%, which is very poor. 

In fact the whole of the auto sector seems to be overvalued, especially the large cap ones (Tata Motor Ltd's P/E is blinding 6,410.63 while the industry P/E is 248.08).......and therefore a DOTCOM-like CRASH can happen at any time.