Winning Strokes

The BSE Sensex is last seen trading vat 57,845.62, up 12.65 points (+0.02%), while the Nifty was seen trading at 17,269.65 up 8.45 points (+0.05%), from the Friday's close. The Nifty as expected took support at 17250 level. If 17200/17250 range holds then we could see a sharp reversal in the coming days. Keep accumulating those stocks which have a story to tell.

#Buy the scrip of HOV Services Ltd near Rs.50/51, SL: Rs.47 (Strict on closing basis), T: Rs.61/63/72. This is a high Beta stock, which means it rises more when the Indices rises.

#The stock of Bombay Rayon and Fashions Ltd (Rs.7.40) is available at an attractive valuation, for long term prospects. As mentioned umpteen number of times, it has a huge factory at Boisar West (near Tarapur Atomic Power Plant) and also another one in Bangalore. The company as per my sources in Mumbai Metropolis (Read Boisar) is doing fine at the moment, though its Mask 😷 Making Division is facing stiff competition from Me - too outfits.  I had personally visited its premises, I mean its  Boisar plant, a couple of times, and had witnessed that full fledged production was going on. 

#The scrip of A2Z Infra Engineering Ltd (Rs.9.25), should bounce back from the current levels. We can look for short to medium targets of Rs.17/19.

It could benefit from the launch of 5G services in India.

The company recently informed that A2Z Infraservices Ltd ('a material subsidiary of the Company'), received a contract from NBCC (India) Limited, for a period of 3 (three) years.  Photo: A2Z Website.

The aggregate amount for the said contract is Rs.64,72,57,235/- (Rupees Sixty Four Crores Seventy two Lakhs fifty Seven Thousand Two Hundred Thirty Five Only) inclusive of all Taxes, Duties, Cess, and Statutory Levies etc.

Apart from infrastructure projects, the A2Z Group also carries out the generation of power through the residues of municipal solid waste. 

Waste to Energy - Power Generation Projects (PGP): The Company collaborated with sugar mills for setting up 3 (three) power plants on Built, Own, Operate and Transfer (BOOT) basis for a period of 15 years in the state of Punjab and to ensure continuous supply of Refuse derived Fuel (RDF) to the said Power Plants, Company developed an indigenous waste processing plant for running the said Plants on Refuse Derived Fuel (RDF) from Municipal Solid Waste.

Non- supply of bagasse by the Co-operative Sugar Mills, various implied delays in approvals and execution of agreements including delay in handing over of land, and there are disputes between the concerned parties with ongoing arbitration proceedings, the execution of Project by the Company has become unviable despite its best bonafide and consistent efforts.

Company however may decide to shift these power plants to other locations subject to availability of RDF at that location(s). Once that is done, these plants would become EPS accretive.

At the moment due to Covid and above mentioned issues all three power plants are non-operational, and is present on the Asset side of the balance.

The company is in the verge of opening its Gurgaon office, after a prolonged period, post Covid - 19 imposed lockdown. At the moment most of the office bearers are working from home.

#The stock of Global Vectra Helicorp Ltd (Rs.50.35) hit lower circuit today, due to sentiments regarding the rise of crude oil prices. 

There is no volume in the counter and the scrip has been falling from around Rs.63/64 levels, but surprisingly the stock market regulator has still not removed it from the T - group, showing how they function and deserves to be criticised. That the stock market regulators hereto have kept the scrip since more than a couple of months in the group, raises a lot of questions regarding the quality of Indian surveillance mechanism.

#The stock of Orient Green Power Ltd (Rs.12.70) is out of LC, but it needs to hold Rs.11.70/11.90 on the downside.

The prospects of Renewable Energy companies are bright as the Crude Oil prices are chugging higher and higher, every week.

Both Orient Green Power and A2Z Infra Engineering Ltd are into Renewable Energy, spaces.

#Suzlon Energy Ltd (Rs.9.65) might test Rs.9.20/9.30 on the downside, where accumulation or averaging can be done.

#Meanwhile, the Union Finance Minister Nirmala Sitharaman said that the government wants a sustained recovery and that the budget proposals for infrastructure construction are an attempt to create a multiplier effect that will help the economy.

Nirmala Sitharaman during a post-budget interaction with industry in the country's financial capital mentioned that the budget was prepared at a time when the economy was recovering from the effects of the pandemic.

She further stated that the budget prioritises growth revival, as well as messages about sustainability and a predictable tax regime. "We would prefer a long-term recovery".

#The share of Shriram EPC Ltd (Rs.8.65), should be accumulated in all market declines, as my sources in Chennai has confirmed that the Shriram group is not interested in selling Orient Green Power Ltd (Rs.12.70). The company has good order book position.

The prospects of Renewable Energy companies look bright as the Crude Oil prices are chugging higher and higher every week.

Market Mantra

Marg Ltd hit another buyer freeze in the opening trade. The stock is locked at the upper freeze at Rs.8.29. Congratulations to all those who bought the scrip on my recommendation. 

Today. Prakash Industries Ltd hit the upper freeze at Rs.75.90 in the NSE, but came down after profit booking was suggested in the counter. The stock moved up on the optimism that coming back of NDA to power is positive for the company and also due to the fact that the ace investor Rakesh Jhunjhunwala entered the scrip last week. However, at the current fundamentals the scrip is over-valued and those who are holding are suggested to book profit and shift to A2Z Maintenance and Engineering Ltd at Rs.10.45-10.50. 
Glodyne Technoservices Ltd hit another buyer freeze at Rs.5.92. Last week the Paid Members were asked to accumulate the counter at Rs.4.92. The scrip is expected to hit some more buyer freezes going forward. 

Please Click on the Chart to Expand

Today' call: Buy A2Z Maintenance & Engineering Services Ltd ( BSE Code: 533292) at Rs.10.45--10.50, for a target of Rs.13.50. There is no need for putting any Stop Loss in the counter. A2Z Maintenance & Engineering Services is one of the leading engineering & infrastructure company, where the well known investor, Rakesh Radheshyam Jhunjhunwala holds 10.01% of the shares.  A2Z Maintenance & Engineering Services said at the end of last month that the Master Restructuring Agreement (MRA) was executed on Thursday, 27 March 2014 as per Corporate Debt Restructuring (CDR) Guidelines. It may be recalled that the company had on 30 December 2013 said its board of directors accepted letter of approval (LOA) dated 28 December 2013, issued by CDR Empowered Group (CDR EG) approving the CDR proposal submitted by the company. The CDR EG approved the CDR proposal at its meeting held on 24 December 2013, the company said at that time. Chartically speaking the scrip is above its 200 DSMA and 200 DEMA. The company has equity capital of Rs 74.18 crore. Face value per share is Rs 10.The crossover has already taken place and it is only time that the scrip starts hitting the upper circuits.
Today my recommended Ahmednagar Forgings Ltd (promoter Amtek Auto Ltd) touched Rs.135.35 intra-day. The scrip would soon cross Rs.140 but book profits on the way. 
My strongly recommended IVRCL Ltd at Rs.12.70, today touched Rs.14.98 and is now trading at around Rs.14.40. The scrip is heading towards Rs.21-22 in the coing day---use all the dips to buy the scrip. 

A2Z Maintenance and Engineering Services Ltd: FY13 Highlights
CMP: Rs.11.45

A2Z Maintenance and Engineering Services Ltd is Engineering, Procurement and Construction (EPC) Company and expanding into being an Infrastructure Company that is building businesses with annuity revenue streams in the areas of Clean and Green energy like Renewable Energy Generation etc.
 
The Company’s operations are geographically spread across India and conducted either directly through the Company or its direct and indirect subsidiaries. In the EPC business, its main area of operation is the Power Distribution segment, though it also provides services in the Power Transmission segment, to Power Generation companies and to other verticals such as Telecommunications Services and operation & maintenance for wire lines. In the Power Distribution segment, it helps build power lines to bring power to areas which lack electricity. The company also assists in reducing the Technical and Commercial losses. A2Z Maintenance and Engineering Services Ltd has successfully executed challenging projects in difficult terrains and in extreme weather conditions in the states of Jammu and Kashmir, Arunachal Pradesh, Himachal Pradesh, Jharkhand, Rajasthan, Orissa, Kerala and Bihar.



Additionally, it is now building businesses that include the following: 

(i) generating power from renewable energy sources such as biomass and fuel derived from municipal solid waste (Renewable Energy Generation); 

(ii) providing municipal solid waste (MSW) management services which involve collection& transportation (C&T) of waste and its scientific processing and disposal (P&D) like recycling, manufacturing of organic compost and greenfuel such as Refused Derived Fuel (RDF) & subsequent disposal of remnants; and (iii) developing informationtechnology (IT) solutions for power utilities (Power IT Solutions).
 
Through its subsidiary companies, creating a cleaner climate is a mission of A2Z. In India, so far, the municipal solid waste management projects are being done ona piece-meal basis wherein C&T is done separately by different agencies and P&D is managed by the government through outsourcing model. 

Being one of the leading Indian Waste Management companies, it has set up the biggest, single location Integrated Resource Recovery Facility (IRRF) in Asia as well as setting up one of the first IRRF with ESCO focus. The Company has pioneered the concept of IRRF right from collection and transportation to processing and disposal by utilizing all items that have not remained useful in their present form any longer and renewable energy generationthereafter.
 
Through multiyear contracts, the MSW and Renewable Energy Generation businesses should provide stablerevenue streams in the years to come.

The company last month said that it has executed a Master Restructuring Agreement (MRA) on March 27, 2014 as per CDR Guidelines. 

IT is a versatile business group with 30000 Employees that contribute to it's Pan India Geographical presence. Incepted in 2002, the Turnover for the Financial Year 2013 is Rs.934.3 Crores. The Group had a CAGR of 100.69% over the past 10 years from FY04 to FY13. 

A2Z Maintenance & Engineering Services Ltd: Some Points Worth Considering

Buy: CMP: Rs.19.10

(i) In 2006, the ace investor, Rakesh Jhunjhunwala paid Rs.20 crore for a 21% stake in A2Z Maintenance & Engineering Services Ltd, an engineering, procurement and construction (EPC) company engaged in power distribution and facility management services (FMS) among other interests. 

(ii) In 2010, it went public, raising Rs.776 crore (fresh issue of Rs.675 crore and offer for sale of Rs.101.25 crore). Under the offer for sale, Jhunjhunwala sold over 1 million shares at Rs.400 a share, pocketing over Rs.40 crore.

(iii) Though the analysts had panned the IPO at aggressive multiples [26 times, against the then-industry multiple of 15x for EPC companies], on the first of listing the stock tanked. To soothe frayed nerves, Big Bull bought 1.375 million shares at Rs.350.77 a share, forking out Rs.48 crore. At the end of the quarter his 19.11% stake was still worth a respectable Rs.450 crore. But the stock continued to head southward. Again on May 22, 2012, Jhunjhunwala bought 2.65 million shares for Rs 26 crore at Rs 100 a share, thus pumping in an additional Rs.75 crore in the company and raising his stake to 22.68%.

(iv) Today, the stock has come off more than 90% to Rs 20.20 as on  May 10, 2013. Though Jhunjhunwala sold part of his stake in March, but still at 18.03% he is the biggest non-promoter shareholder and the stock remains the biggest bet, in percentage holding terms, within his portfolio; though its value is now  is just a little above Rs.27 Cr. This means the ace investor will do all possible to recover his money back. 

(v) The company recently through a postal voting decided to revise the utilization of the proceeds from the IPO of equity shares made in pursuance of the Prospectus and have got approval from the shareholders to utilize the proceeds  other than those mentioned in the Prospectus.

(vi) The company which started off as an FMS provider, moved on to installing power distribution lines and sub-stations, too fast, bringing in problems for the company. However, now with the talks of restructuring of "discoms" and efforts made to solve the coal issue, the power sector outlook has improved, than it was a couple of months back. Moreover, the management referred the company to the corporate debt restructuring cell. It remains to be seen when the company gets bailed out. Meanwhile, we can take positions due to improved sentiment in the sector and also due to new initiave taken by the management to turnaround the company. Moreover, as long as we have Rakesh Jhunjhunwala to force the management to do things in order to improve the fundamentals, we do not have to worry much. For more on the company please, CLICK HERE.

Concern:  An eye-sore is that though A2Z allocated a chunk of the IPO proceeds for its biomass plants of 60 MW, but still it is facing delays in execution and signing of power purchase agreements. The IPO of the company came in Dec’10 at a price of range of Rs.400-410. The company listed on 23 Dec’10 at a price of Rs.398, which was a tad below the IPO price. Since, then it has never touched the IPO price and Rs.398 remains the all-time-high traded price.

Market Mantra

The market extended gains and hit fresh intraday high in mid-afternoon trade, backed by positive opening in the European market. At 15:15 IST, the barometer index, the S&P BSE Sensex, was trading at 35,148.46 up 335.47 points or 0.96% while Nifty was seen at 10,584.50 up 102.30 points or 0.98%.

The Nifty 50 index was up 91.15 points or 0.87% at 10,573.35. Gains were supported by firmness in oil sector stocks. The Sensex regained 35,000 mark in mid-afternoon trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.09%. The BSE Small-Cap index was down 0.07%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1214 shares rose and 1292 shares fell. A total of 127 shares were unchanged.

On the economic front, India's industrial production grew 4.5% in September compared with the upward revised 4.7% in August, data released by the statistics office showed. August growth had initially been estimated at 4.3%.

Inflation as measured by the Consumer Price Index stood at 3.31% in October compared to 3.70% in September, showed government data released on Monday.

Overseas, European equity markets opened higher on Tuesday, following a pullback in stocks stateside. Investors are keeping a close eye on oil prices, after new comments from President Donald Trump. He said that the group of oil producers OPEC should not cut supply to prop up the market.

Asian shares were mixed on the back of US stocks closing sharply lower Monday. In US, the Dow Jones Industrial Average tumbled 600 points as crude oil prices extended their retreat while a firmer US dollar also sparked worries about the competitiveness of US corporations in an increasingly challenging economic environment.

#Buy the shares of A2z Infra Engineering (Rs.13.35) for short term targets of Rs.17/22/36/42. SL: Rs.9.40.

Shareholding Pattern:

• SICOM -- 3.57%
• Standard Chartered Bank -> 7.13%
• Aspire Emerging Fund (an FPI) -> 1.53%
• Edelweiss Asset Reconstruction Company Ltd -> 6.49%.
• Shankar Sharma, an Ace Investor -> 4.66%.

On 27 July, A2Z Infra Engineering announced OTS with lenders of A2Z Green Waste Management towards Debt of Rs.275.94 Cr, for a total consideration of Rs.70 crore.  On that day it hit 20% UC & was trading above Rs.24. Shankar Sharma is reported to have recently recommended it. This is going to be multibagger going forward as it has cut down its debts substantially and has good order book position. 

#The scrip of Omkar Speciality Chemicals Ltd and its sister concern Lasa Supergenerics Ltd hit their respective buyer freezes at Rs.11.71 and Rs.26.15 on the BSE. Congratulations to those who bought the scrip on my recommendation. 

#The Nifty would continue to get support above 10500 and would move towards 10700 in the coming days. The small and micro-cap rally is about to being as November-effect has kicked in. Therefore, book your seats in advance in this space.

#The scrip of Ishan Dyes & Chemicals Ltd (Rs.57.50) is consolidating around the current ranges before the next level of Upmove which is likely to take the scrip above Rs.67. Keep holding with a SL of Rs.56.

~~with inputs from Capital Market Live News.....

Market Mantra 

Yesterday, the S&P BSE Sensex, fell 304.18 points, or 0.50%, to 60,353.27, while the Nifty50 fell 50.80 points to 17,992.15 or 0.28%. Today also the Nifty is down 49.65 (0.28%). The indices are going for seasonal adjustments, post a massive Bull run --medium to long term investors need not worry.

Investors were concerned after the Dow Jones fell as the US Federal Reserve's December monetary policy meeting increased apprehensions, that the US central bank will continue to raise interest rates in the future.

Yesterday, the U.S. stocks sank after economic data showed private payrolls rose more than expected last month and weekly jobless claims fell to a three-month low, pointing to continued tightness in the labor market despite higher interest rates.

But the point is that we can't draw such staight forward conclusions, simply by looking at the US Jobs data while ignoring other economic matrices, like job cuts,  contraction in the US economy (Two consecutive quarters of negative growth mark a “technical recession.”), etc. Hence, it will be too much exaggerated to think that the US Fed will go on, with its interest hiking spree in the near future.

Meanwhile, though the Joe Biden administration has argued that the American economy is not in a recession, based on a still strong labor market, but the underlying structural shifts doesn't warrant further rate hikes, because such monetary measures do act with a time lag of 4-6 months. Thus my conclusion is that either the US Fed has done away with interest rate hikes or there could be just 100 bps left, for the final call.

Given this scenario and considering the current state of Indian economy, I would suggest you to slowly pick up stocks which has a story to tell. 

#Buy the shares of A2Z Infra Engineering Ltd (Rs.9.90) for short term targets of Rs.17/19. 

💥Major portion of Company's business, except the Municipal Solid Waste segment, depends on demand from sectors that are directly linked with the macro environment and broader economic sentiments. For e.g., the Engineering Services segment would see more demand if the Gross Capital Formation or capital investments improve in the economy.

💥The Company's performance in the FY2021-22 was a mixed bag. While the operating revenues declined on a YOY-basis by 14.8%, but continuous de-focus from the low Margin EPC business has given an improved revenue mix in favour of our profit-making businesses. 

💥The combined share of Facility Management Services and Municipal Solid Waste business increased from 55% in FY2020-21 to 61% in the financial year FY22. 

💥The Company was also successful in managing its direct raw material and employee costs in line with the revenue despite high inflation. During FY22, the Company's cost of financing was also reduced to less than half of the FY2020-21 level. 

💥 Interestingly, the company was able to enter into one time settlement with three banks during FY22 to reduce its outstanding debt. 

💥At the operating level, one the key development during the year 2022 was sale of its wholly owned subsidiary Chavan Rishi International Limited. 

💥The Company also won two major mandates in the Facility Management Services space with a term of 3-years each. 

💥In the Engineering Services and Power Genera on Projects business, the Company con nues to face challenges. 

Various Segments of Company's Business:

Power Transmission & Distribution:

A2Z Infra Engineering Ltd (Rs.9.90) is an experienced company in Engineering & Urban Infrastructure Services sector. 

As part of the services, the Company provides integrated design, testing, installation, construction and commissioning services on a turn-key basis to its clients. 

The Company’s projects include rural electrification, railway overhead electrification, reduction of AT&C losses, feeder renovation, underground cabling, feeder segregation, installing High Voltage Distribution System (“HVDS”) and Low Voltage Distribution System (“LVDS”) distribution lines and transmission lines. The Company has strong capabilities to build, operate and maintain:

• Substations & Switchyards up to 765 kV.

• Transmission lines up to 765 kV.

• 11 / 33 kV distribution lines comprising of Feeder Renovation Projects, Tube Well Connection, Segregation of Domestic and Agriculture load, Augmentation of Lines, Providing Laying of HT & LT Aerial Bunched Cables and Offering BPL Connections along with New connection & replacement of old meter works.

The Company has its overseas presence in Nepal, Uganda and Tanzania.

Under Engineering Services segment we may pursue infrastructure projects like Sewage Network & Treatment Plants, Gas Distribution Networks, and Metro projects in select cities.

It has projects ins various states of India including Jammu & Kashmir, Rajasthan, Orissa, Bihar, Arunachal Pradesh, Jharkhand, Kerala, Chhattisgarh, Haryana, Uttar Pradesh and Himachal Pradesh.

Telecom Infrastructure EPC

Telecom Infrastructure Projects is the main business activity of the Company. Major offerings by Company in Telecom Infrastructure EPC are supplying, laying and maintaining of Optical Fibre Cables (OFC) networks. EPC services offered by the Company under this segment include:

• Optical  Fiber  Cable  NLD  /  Access  Networking Construction & Maintenance.

• Network Integration.

• Telecom Infrastructure Operation & Maintenance Services.

• Material Planning & Project Management.

• Radio Frequency Engineering Services.

• Engineering Construction & Infrastructure Services.

The Company is successfully executing orders for construction of Telecom Network Backbone on Turnkey basis in the untapped toughest terrains of the country like Leh, Ladakh and North East India, which will help in building the optical Network to connect each and every part of the Nation.

Further, Company has tied up with Telesonic Network Ltd. (an Airtel group company) for work to be carried out on continuing basis at various circles including obtaining permission from applicable authority for HDD/Open Trench/ Moiling/First level restoration/Duct Pulling up to 4 number/ DIT/All Fiber Blowing & Pulling/Splicing/Manhole and Hand hole Supply and installation/ODF and OTB installation/AT Testing and sign off/Handover to O&M Team and such other work as may be specified/required from time to time.

Waste to Energy- Power Generation Projects (PGP)

The Company collaborated with sugar mills for setting up three power plants on Built, Own, Operate and Transfer (BOOT) basis for a period of 15 years in the state of Punjab and to ensure continuous supply of Refuse derived Fuel (RDF) to the said Power Plants, Company developed an indigenous waste processing plant for running the said Plants on Refuse Derived Fuel (RDF) from Municipal Solid Waste.

Non- supply of bagasse by the Co-operative Sugar Mills, various implied delays in approvals and execution of agreements including delay in handing over of land, and there are disputes between the concerned parties with ongoing arbitration proceedings, the execution of Project by the Company has become unviable despite its best bona fide and consistent efforts.

In the light of Section 12(5) read with schedule VII of the Arbitration and Conciliation (Amendment) Act, 2015 and various judicial pronouncements in this regard, the Addl. Registrar of the Co-operative Society, Punjab, appointed by the Co-operative Sugar Mills as the Sole Arbitrator was ineligible to be appointed as an arbitrator in the concerned arbitration proceedings as the dispute arising under the MoUs were to be referred to Arbitrator, who should have been the Registrar, Cooperative Societies, Punjab. The said award passed by Additional Registrar has been challenged by the Company under Section 34 of the Act before the Hon’ble District Judge, Chandigarh. Moreover, A2Z Infra had filed petitions under Section 11 and 14 of the Act before the Hon’ble High Court of Punjab & Haryana and Hon’ble District Court, Chandigarh, respectively, for appointment of an independent arbitrator and termination of mandate of the existing arbitrator, being illegal and arbitrary appointment, in the instant arbitration proceedings initiated by the Cooperative Sugar Mills and the said petitions are still pending before the respective Courts.

Due to these disputes with sugar mills in respect of cogeneration power plants, the sugar mills have terminated the agreement signed between the parties during the pendency of arbitration before the Additional Registrar; validity of termination is a matter of dispute to be dealt by the arbitrator while deciding the disputes between the parties. Henceforth, at present all the three power plants are non-operational.

Impact of COVID-19 pandemic

The COVID-19 pandemic has distressed the execution of the projects at various sites. Due to the onset of the COVID- 19 pandemic since March 2020, there is an inherent risk to health and safety of the employees and workers, and risk of disruption in production due to lockdown. Impact of COVID- 19 in the last two years, results in delay of significantly accelerate execution of the projects. It has resulted into the distressed Cash flows/Financials results for the Year ended March 31, 2022 as well.

But with the removal of nation wide lockdowns, the fundamentals of the company are expected to move up exponentially in the coming months.

Accumulate!!

Winning Strokes

Yesterday, the BSE Sensex closed at 56,319.019 up 497 points (+0.89%), while the Nifty settled at 16,770.85 up 156.65 points (+0.94%). I'm expecting the Nifty to gradually trend towards 16400/15870 level in the coming days, before moving up. Photo: Times Now.

Finance Minister Nirmala Sitharaman will present her third budget and will be assisted by a team of advisers and secretaries with a mission to boost economy in these outbreak times. Sitharaman has promised that the upcoming Budget will be of a kind never seen before, one where fiscal concerns will be kept aside and there could be record public spending, with an objective of boosting demand and creating jobs. So, next year we can look forward to Sensex touching 70,000.

#The stock of Shriram EPC Ltd (Rs.7.45) touched a high of Rs.7.65 in the NSE before closing near the day's high. 

The Dubai-based family office Mark AB Capital will take over Shriram EPC, an engineering procurement and construction contractor and part of the financial services conglomerate Shriram group by picking up 26% stake for Rs.350 crore. Hence, this Dubai based firm is the New Promoter of Shriram EPC. Now we know from our previous experience that FERA Companies command high valuations. So, we need to look at the counter of Shriram EPC Ltd (Rs.7.50), from a new angle. Considering the brand of its new promoter, Bullishness associated with the construction sector and the upcoming Infrastructure focused budget we can look for long term targets of Rs.37/45/72/167/291. Buy on Market Declines. This is a sure shot bargain, as the company will not face working capital hassles and will now operate on international scale (foreign contracts).

The stock of Den Networks Ltd (Rs.40.25) is from the Mukhesh Ambani group, and has high safety associated with it. They also obtained a non-exclusive license from the DoT to set up and operate internet services all over India.  

Some people are of the opinion that, 5G Services could bring about the end of cable TV, whereas others think it won’t have much of an impact. 

However, the Den Networks Ltd is a hybrid player and therefore could excel in  this space or could take over the business of pure cable TV operators, by dishing out to customers, internet streaming platforms. I mean, even if 5G services next year pose some challenges to Cable TV sector, Den Networks will be able to match any drop in revenue through high speed video streaming.

The improvements to wireless broadband technology through the advent of 5G services can threaten cable TV companies, and hence the investors were shying away, but Den Networks has an excellent story. Up until now, while 4G LTE delivers excellent speeds, its capabilities are nothing compared to what a cable connection can give you. This is going to change, with India going for 5G services tentatively in the middle of next year. Many companies routinely offer connections of 200 Mbps or more, with Gigabit Internet now also available in most places. This means that 5G can replace cable Internet in some places, which would be detrimental to PURE cable TV business model and hence could help hybrid players like Den Networks to take over their businesses (if any). 

To give you a little better idea of what’s happening in the US on cable TV industry, here are some stats: 

• The 2 largest cable companies, Comcast and Charter, are trading at record high prices. Charter stock prices are up more than 150% in the past 5 years. (Sources 1, 2).
• In 2020, Charter added more than 2.1 million home Internet customers, up from 1.3 million the year before. (Source 3).
• Year-over-year growth for Comcast’s Internet service is above 5%, the highest rate in more than 6 years. (Source 4).
• In 2020 alone, more than 6 million people cut the cord, choosing to drop cable TV services in favor of streaming-only options. (Source 5)

Over and above, Den Networks, is debt free, comes from a big brand, entertains 13 million+ households in India across 13 key states and 433 cities and has the Largest Subscriber Base amongst all cable players in India. 

Besides, after revolutionising the internet adoption in India with Jio’s free internet data plans, Mukhesh Ambani has drawn up the plan for a second wave of the digital revolution through JioFiber broadband services.

On September 5, 2019, Reliance Jio launched a fiber-to-the-home (FTTH) internet broadband service JioFiber, also known as Jio GigaFiber, in over 1,600 cities in India. This is expected to get more aggressive, post 5G Launch in India. 

JioFiber is offering a speed starting from 100 Mbps and go all the way up to 1 Gbps. These plans come with access to free domestic voice calling, conferencing and international calling; TV video calling and conferencing, entertainment OTT apps, gaming, home networking, community management services, device security, AR/VR experience and more.

• High-Speed Internet
• Voice Assistant
• Free Voice And Video Calling
• 4K Set-Top Box
• Music And Video Streaming
• Home Networking And Smart Homes
• Jio Security
• Smart TV Experiences
• JioGate Community Management
• Online Multiplayer Gaming
• Virtual Reality Experiences

Those having a long term vision should have the scrip of Den Networks Ltd (Rs.40.25) in their kitties.

In another development, the case of Future Retail Ltd (Rs.54.35) is now all set to go in its favour of the master Indian strategist, Kishore Biyani, as he is all set to gift Biriyani...😀😀to his shareholders. The Economic Times writes, Future may use CCI order to get Amazon cases quashed. 

I have mentioned many times, in this blog that it will be very difficult, if not impossible to beat Mukhesh Ambani in his home turf. And the new developments, just indicate that.....We can now look forward for targets of Rs.100+, in the coming days. Accumulate on declines.

You can continue accumulating the shares of Bombay Rayon and Fashions Ltd (Rs.7.15) for targets of Rs.27/35. The company has opened new stores in Bangalore. Photo: Bombay Rayon and Fashions Ltd's new store in Bangalore.

Another, I want to ask the regulators: on what basis a stock is put in T - group (BL in NSE)? I see Stocks like Sintex Plastics Ltd (Rs.13.45), Trident Ltd, 3i Infotech, Urja Global Ltd (Rs.14.90), Nagarjuna Fertilizers Ltd (Rs.11.35), HCC (Rs.15.60), etc which are either hitting continuous Upper Circuit for weeks or there are too much speculation, have still not been shifted in Trade - to - Trade segment (T - group), while it is not the case for many others, Reliance Capital (Rs.13.65), Reliance Infra Ltd (Rs.95.15), A2Z Infra Engineering Ltd (Rs.7.70), etc. 

If the stock exchanges do this of regulation, then obviously the shareholders will question the intent of the regulators. I'll only say - we either have a very bad regulation policy or the persons who are entrusted with the implementation of the surveillance policies/mechanism are probably doing the work with a jaundiced vision. 

My request to the regulators of stock Exchanges: Kindly, take note of my concerns and take necessary steps to correct the aberration.

The shares of Suzlon Energy Ltd (Rs.7.45) has been hitting the buyer since the last couple of days. We can look forward for targets above Rs.10, as the government of India is all set to implement the Renewal Energy targets of 2022. The upcoming budget is likely to give incentives for the Renewal Energy sector. Accumulate in Market Declines. 

Buy the shares of A2Z Infra Engineering Ltd near the CMP of Rs.7.55, for short term targets of Rs.12/15.

According to Simply Wall, A2Z Infra Engineering Ltd (Rs.7.55) had a debt of Rs.3.63 billion as of 31 March, 2021, down from Rs.4.79 billion. However, it has a cash reserve of Rs.2.13 billion, hence its net debt is a meagre figure of Rs.1.50 billion -- this is very less, for the companies in its sector of performance.

 Winning Strokes

Yesterday, the domestic bourses closed in the red following the Ukraine - Russia border tussle. The BSE Sensex closed at 57,683.59 down 149.38 points (-0.26%), while the Nifty ended the day almost flat at 17,206.65 down 69.65 points (-0.40%). However, the selling was more pronounced in the small and mid cap segments, due to the IMAGINARY FEAR of escalation of the crisis.

Interestingly, this kind of border skirmishes are regular in India (with Pakistan) in the north western and western side of Indian border. Kashmir Issue continues to drain India's resources, but we see no impact on the world economy.

But surprisingly, this issue between Ukraine & Russia is getting blown out of proportion, due to highhandedness of the media. The world media should behave responsibly, so that peace returns smoothly.

It is pertinent to mention that Ukraine is a very small country, with its GDP size [184.92 billion (nominal, 2022 est.)] of less than that of Uttar Pradesh [₹17.05 trillion (US$230 billion) (2020-21)].

Hence, how can any future war with Russia affect the world economy except creating HOT AIR is beyond my comprehension and understanding. Therefore, my suggestion would be to accumulate/average good stocks at reasonable valuations for 3/4 months perspective.

#A2Z Infra Engineering Ltd (Rs.9.20) could benefit from the launch of 5G Services in India. Company has tied up with Telesonic Network Ltd (an Airtel group company) for work to be carried out on continuing basis at various circles including obtaining permission from applicable authority for HDD/Open Trench/Moiling/First level restoration/Duct Pulling up to 4 number/

DIT/All Fiber Blowing & Pulling/Splicing/Manhole and Hand hole Supply and installation/ODF and OTB installation/AT Testing and sign off/Handover to O&M Team and such other work as may be specified/required from time to time. Photo: Indiainfoline.

In the Renewable Energy space, Company collaborated with sugar mills for setting up 3 (three) power plants on Built, Own, Operate and Transfer (BOOT) basis for a period of 15 years in the state of Punjab and to ensure continuous supply of Refuse derived Fuel (RDF) to the said Power Plants, Company developed an indigenous waste processing plant for running the said Plants on Refuse Derived Fuel (RDF) from Municipal Solid Waste.

Non- supply of bagasse by the Co-operative Sugar Mills, various implied delays in approvals and execution of aagreements including delay in handing over of land, and there are disputes between the concerned parties with ongoing arbitration proceedings, the execution of Project by the Company has become unviable despite its best bona fide and consistent efforts.

Due to these disputes with sugar mills in respect of cogeneration power plants, the management of the Company may decide to shift these power plants to other locations subject to availability of RDF at that location(s).

However, due to Covid and above mentioned issues all 3 (three) power plants are non - operational. Once they become operational and become EPS accretive, the stock would shoot up like a Rocket. At the moment it is on the Asset side of the Balance Sheet.

By the way, the cost of setting up (or the price of) a RDF Technology plant in India is Rs.3 crore/unit, which will give you a rough estimate of the valuation of the 3 (three) Power Plants. 

The Company has its overseas presence in #Nepal, #Uganda and #Tanzania.

--------------

#Telecom #Infrastructure #Projects is the main business activity of the Company. Major offerings by Company in Telecom Infrastructure EPC are supplying, laying and maintaining of Optical Fibre Cables (OFC) networks. EPC services offered by the Company under this segment include:

• Optical Fiber Cable NLD/Access Networking Construction & Maintenance.

• Network Integration.

• Telecom Infrastructure Operation & MaintenanceServices.

-----------

Under Engineering Services segment A2Z Infra Engineering Ltd pursues infrastructure projects like Sewage Network & Treatment Plants, Gas Distribution Networks, and Metro projects in select cities.

It also completed projects in various states of India including Jammu & Kashmir, Rajasthan, Orissa, Bihar, Arunachal Pradesh, Jharkhand, Kerala, Chhattisgarh, Haryana, Uttar Pradesh and Himachal Pradesh.

The stock which is also into Renewable Energy space (compare it with Suzlon Energy Ltd) is trading at around half its Book Value (Rs.18.08), which is absolutely a misnomer. The current market cap of Rs.162 crore also doesn't make any sense.

#The stock of Shriram EPC Ltd (Rs.8.76) closed in the Green yesterday, after I confirmed that the company is not looking to sell its renewable energy company, Orient Green Power Ltd (Rs.12.70). The stock of Orient Green Power needs to hold Rs.11.70/11.90, for any sustained upside from the current price.

#Global Vectra Helicorp Ltd (Rs.51.90) closed flat yesterday. I feel most of the market has probably not understood the December 2021 quarter results. 

In the Q3FY22, the total income of the company came as Rs.91.58 Cr as against Rs.87.26 Cr in the September, 2021 quarter and Rs.91.55 in the December, 2020 quarter. The profit before tax in Q3FY22 came as Rs.1.37 Cr against a loss of Rs.9.01 Cr in the September, 2021 quarter and loss of Rs.2.93 Cr in the December, 2020 quarter, showing a marked improvement in the fundamentals. However, though the OPM came at 29.47% (24.73%), the Cash EPS remained flat at Rs.12 for the December, 2021 quarter.

I would therefore, suggest you to accumulate the shares of this Helicopter company during the market declines, for targets of Rs.120/180. 

I feel the stock is unnecessarily languishing in the T - group since more than a couple of months, due to faulty surveillance mechanism. 

 A2Z Infra Engineering Ltd: Buy

CMP: Rs.10

Introduction: 

The focus of the A2Z Group has been on Facility Management and Waste Management (Collecon & Transportation) and shall continue to be so. In the EPC vertical, it is focused on executing existing projects and pursued only the projects that present suitable financial terms. In the EPC business, its focus continues to be on the Telecom and Power Transmission & Distribution segments.

The company is presently having offices in Nepal, Uganda and Tanzania for global expansion of business. In near future to expand the business operations, the company might open offices in other countries as well.

More Coming.......Stay Tuned....🙏🙏

WINNING STROKES: THINK DIFFERENT

My recommended Marg Ltd hit another buyer freeze at Rs.14.78. The scrip has been hitting continuous buyer circuits after its recommendation. Congratulations to those PAID MEMBERS who could pick up that stock on that day. 

Insecticides India Ltd ( BSE Code: 532851) today  touched Rs.284.65, before cooling down at  Rs.282 in the BSE and Rs.283 in the NSE. The scrip is all set to touch Rs.370-290 in the coming days in view of rise of the shares of the companies from this space. The monsoon is coming and the demand for the company's products are going to increase in future. Also, there is a gradual rise in the use of pesticides all  over India, during the last couple of years and the company stands to benefit from this event. Agriculture is the dominant sector of Indian economy, which determines the growth and sustainability. About 65% of the Indians still relies on agriculture for employment and livelihood. The company has touched more than 4 lakhs farmers in person to help them in getting the best harvest out of their efforts. Apart from acquiring new technologies and making tie-ups with globally successful brands, Insecticides India Ltd is keen to develop new agro-chemical molecules through R&D. The market for agrochemicals is expected to grow at the rate of 7.5% to reach USD 3.5 billion by FY15. The expected growth is supported by the fact that India's agrochemical consumption is one of the lowest in the world with per hectare consumption of just 0.58 kg compared to US (4.5 Kg/ha) and Japan (11 Kg/ha). The suboptimal and inadequate usage of agrochemicals incurs 20-30% losses every year. The company will be commencing a new R&D Centre in JV with the leading Japanese Company, Otsuka Agri Techno Co Ltd at Chopanki, Rajasthan by the 1st part of FY15. The objective of this new Research Venture will be to invent agrochemical molecules in India for the international requirements. The research centre aims to invent 4-5 molecules in the next five years. Very recently, Indian Patent Office has granted Insecticides India Ltd (IIL) a process patent for an insecticide product – giving a shot in the arm for the research and development efforts of the company. Insecticides India is one of the leading agrochemicals manufacturing company with a top line of Rs.650 crore in last fiscal (2012-13). The company is expected to touch Rs.900 crore this fiscal.

The subscription fees for the Premium (Paid) Service is going to increase to Rs.10, 000 per year from the current Rs.7000 per year from 15th May, 2014. Therefore, those who are interested are requested to either enroll before that or trade through my recommended brokerage house/s with a minimum  portfolio size of Rs.1 lakh, to get this service FREE of charge.

It seems PVP Ventures Ltd (Rs.7.91) has completed the correction and is ready to move up from the retracement point. The CMD of the company stands to get direct benefit from any positive results from Telugu Desham Party (TDP).   Moreover, there were media reports that PVP Ventures Limited, a Hyderabad-based multi-business house with interests in real estate, media and entertainment, in partnership with retired cricketer Sachin Tendulkar, has won the rights to own a Kochi-based soccer club that is part of the eight-city Indian Super League. PVP also owns Hyderabad Hotshots, the inaugural Indian Badminton League champion team. The scrip is now all set to reach Rs.12-13, in the coming days. 

A2Z Maintenance and Engineering Services Ltd (Rs.10.13) is going down due to no apparent reasons. The company has completed a master restructuring and is expected to improve at least its top-line in the coming days. However, according to a media report,  A2Z Maintenance and Engineering Services Ltd, Gurgaon which bagged contracts for setting up power plants, is having issues in  completing the projects according to the agreed time schedule. A major thrust area of the SAD-BJP regime has been to make Punjab surplus in power. However, while doing so, there is evidence to suggest Chief Minister Parkash Singh Badal’s extended family allegedly benefited as the second in the series of The Tribune’s investigative report reveals--this is having some sentimental effect on the company, in the short term. But any NDA (BJP and its allies) win in the Lok Sabha elections, could work miracles for the company. Besides, an ace investor is still holding around 10% stake in the company. So, I strongly feel that this could be another Suzlon Energy Ltd, which shot up from a low of Rs.5.72 to the CMP of Rs.14.27, after touching an yearly  high of Rs.15.55 on 10th April, 2014. If you remember Suzlon Energy Ltd was also strongly recommended by me for a target of Rs.15, which was achieved long back. Therefore, you should accumulate the scrip on all declines. 

The scrip of Glodyne Technoserve Ltd (Rs.6.64) today closed above its 50 DSMA and 50DEMAs. The next target seems to be Rs.7.90, after bouncing back from the retracement levels.

IVRCL Ltd as expected recovered today, after touching a high of Rs.15.59, in the late trade, before again sinking down to Rs.15.04 at the end of the day. Though there are some liquidity issues in the company, but I feel with the completion of the CDR, the fundamentals of the company would improve substantially. If you are getting the scrip at such a low price,  it is time to accumulate the same for the long term. Buy at least 20, 000-30, 000, shares of the company and keep holding---I am sure most of you would be benefited.

Vijay Shanthi Builders Ltd is consolidating the current price of Rs.11.37-11.50. A large move is expected from the scrip post Q4FY14 results. This is a very safe counter and have always given returns to patient investors.

 Winning Strokes

Yesterday, the BSE Sensex closed at 57,426.92 up 1,016.96 points (+1.80%), while the Nifty closed the day at 17,094.35, up 276.25 points (+1.64%). In the recently concluded meeting, the RBI maintained its full-year inflation forecast at 6.70% but lowered its growth estimates marginally to 7% from 7.20%.

Last week the Nifty managed to get back  above the psychologically vital 17,000 mark as well as its 200-day simple moving average (around 16,990), with crucial support at 16,750. I hope this week Nifty will be able to maintain this level, with occasional bouts of buying and selling. 

#The fall in coal prices will help the power sector stocks. While the power tariffs will remain same, the fall in coal prices would add considerable power to the bottomlines of these companies. Stay put in RTN Power Ltd (Rs.4.35), Reliance Power Ltd (Rs.16.40) and Adani Power Ltd (Rs.373.50).

The market cap of RTN Power Ltd is only Rs.2,336 crores. Moreover, the company has good land bank, which we will see below. 

Amravati Power Plant is spread over 1350 acres of land at MIDC Industrial Area. Nashik Thermal Power Plant in situated near Sinnar, 40 kilometers from Nashik city in Maharashtra, India. 

The plant spreads over an area of 1,040 acres has an installed capacity of 1,350 MW. Sinnar Power Plant has coal linkages from Coal India Limited (CIL) subsidiaries.

RTN Power Ltd hopes to become debt free within a couple of years. Hence, buy and hold the scrip for 2 - years.

Meanwhile, Adani Power Ltd, the India’s largest private thermal power producer’s 100% acquisition of Diligent Power Private and DB Power has been approved by the competition watchdog Competition Commission of India. The company announced to acquire DB Power for Rs.7,017 crore in last August. .

#The textile companies will witness new contracts from this month. The last period was marred by high cotton and crude prices. While the crude oil prices are still near $80 per barrel, the cotton prices have come down considerably in the last few months. 

A Hindu Businessline report of 30 September, 2022 states that, "Rates down over 35% from the peak seen in May as spinning mills expect further fall.

Trade sources estimate the daily market arrivals in the range of 25,000-30,000 bales (170 kg) and prices are seen softening ahead of peak arrivals in mid-October." Remain invested in good cotton scrips. I've already recommended two textile stocks, which are also owned by the ace investor, Dolly Khanna: Nitin Spinners Ltd (Rs.217.80) and Nahar Spinning Mills Ltd (Rs.306.45).

If you want to maximize your returns from the sock market investments, then you can go for my profit sharing mode; wherein the profit will shared in the ratio of 70:30, between you and my business concern 

In such cases you need to compulsorily open a demat account in my associate brokerage house, with a minimum portfolio size of Rs.2 lakhs. The working capital would be invested in delivery based scrips with occasional F&O trading. Hence, the chances of making gains over a period is good. For details kindly send me a mail at: sumonbombay@gmail.com.

#Post monsoon, the construction activities will commence in full pace. Moreover, the fall in the price of Steel and Cement will help the bottomlines of Construction companies. Keep accumulating the shares of Dilip Buildcon Ltd (Rs.220.80) and my old favourite A2Z Infra Engineering Ltd (Rs.10.30). 

Dilip Buildcon last week said it was declared as the lowest bidder for Phase-2 of Ahmedabad Metro Rail project in the state of Gujrat. The company has an order book of ~Rs.25,000 crores.

Dilip Buildcon is a full-service infrastructure company with construction capabilities in roads & bridges, mining, water sanitation, sewage and dams with a presence in over 19 states. The stock would give Multibagger returns from here.

I'll speak with my sources in A2Z Infra Engineering Ltd, this week. The company's June, 2022 quarter numbers were good on Q - o - Q basis. The company also installs Telecom Towers. The 5G Telephony will require lot towers. Accumulate both the shares during market dips.

#Short term traders can do ranlge play in the stock of Swan Energy Ltd (Rs.223.50). This is a huge Company, run by one of Narendra Modi's blue eyed boys.

WINNING STROKES: THINK DIFFERENT

The dream run of Shree Ganesh Jewelry House (I) Ltd has at last began, with the scrip touching Rs.34.20, intra-day. The scrip is expected to touch Rs.41-42, in the short term. One should accumulate it on all declines. Q4FY14 results are expected to be better than Q3FY14. 

Glodyne Technoserve Ltd hit another buyer freeze in the mid-afternoon trade at Rs.6.83. The scrip was asked to be recommended to the Paid Groups at Rs.4.92. 

Unitech Ltd recommended a couple of days back to the Premium Members at Rs.15.70, today touched Rs.17.34 before closing at Rs.1.85. The scrip is slowly moving towards Rs.21-22. 

Jai Balaji Industries Ltd which I bought for some of my clients at around Rs.12.30, for whom I do the trading, today hit another buyer Freeze at Rs.13.37. The current market cap of the company at Rs.89.90 Cr is simply a joke considering the enterprise value of the company including its mines. I expect the scrip to hit non-stop buyer freezes in the coming days. Buy the scrip on any given opportunity, as the scrip could be heading towards Rs.29-30, in the coming days. 

A2Z Maintenance and Engineering Services Ltd today touched Rs.12.70, before cooling down at Rs.12.09 at the end of the day. The company has completed a master restructuring plan and has order book in hand. The company henceforth is expected to do much better, according to my close sources. Incorporated in 2002, A2Z Maintenance & Engineering Services Ltd. (AMEL) is an established EPC company provides services to the power transmission and distribution sector with a focus primarily on the distribution segment. The company has diversified its EPC services to power generation companies and companies in other sectors such as road and telecommunications. In addition, the company is also in other businesses such as (i) power generation from renewable energy sources; (ii) municipal solid waste management services (iii) facility management services; and (iv) developing information technology solutions for power utilities. The power sector in India is slowly moving from a regulated return framework to a market driven pricing mechanism. This is providing a major boost for private entrepreneurs to enter the power sector and set up projects. Demand for engineering, procurement and construction services in the power transmission lines and power distribution businesses is largely dependent on development, demand and new investments in the power generation, transmission and distribution sectors. AMEL is engaged in the FMS business (Facility Management Services) since its incorporation in 2002.  The company’s services in the FMS business include engineering maintenance (mechanical, plumbing, electrical, HVAC, DG Set), energy saving solutions, janitorial services, parking management, property lease management, telecommunications tower maintenance and security services to public and private sector clients. AMEL has also diversified into the Power IT Solutions business, where it executes projects as a systems integrator by developing solutions for aggregate technical and commercial (AT&C) loss reduction in India. The ace investor Rakesh Jhunjhunwala is still holding a substantial stake in the company. I am expecting the scrip to cross Rs.20, in the short term, as at present there is no negative news. 

Allied Digital Services Ltd (ADSL) which was asked to be accumulated around Rs.11-12 today touched Rs.15.80 before cooling down at Rs.15.23. The scrip is moving towards Rs.21-22 in the coming days. Many of the Gujarati management (Nitin Shah is the CMD of ADSL) companies are moving  up fast on the optimism that Narendra Modi could become the next Prime Minister of India. 

There is no stopping of IVRCL Ltd and HCC Ltd as both the scrip moved up in tandem. While IVRCL Ltd touched Rs.16.10 intra-day before closing at Rs.15.80, HCC Ltd (recommended at Rs.12.70-12.80 on 4th February, 2014) closed at Rs.19.20, after touching a high of Rs.19.80 intra-day.

Marg Ltd, which was recommended around Rs.7.65 on 3rd April, 2014, to the Paid Groups, today hit another buyer freeze to close at Rs.9.56. With a BOOK VALUE of Rs.180.91 wait for non-stop buyer freezes in the coming days.

WINNING STROKES: THINK DIFFERENT

Photo: Wallpaper.imcphoto.net

Genera Agri Corp Ltd hit another buyer freeze today at Rs.6.91 at the end of day, before closing at Rs.6.88. The scrip will reach Rs.9, in the next few trading sessions, as a pickup in seasonal rainfall tempered concern inflation will accelerate.

Today, the diversified firm (Real Estate, Special Situations and Media & Entertainment) PVP Ventures Ltd was recommended a buy to the Premium Group Members at Rs.8.10-8.30, after the source based news said that the company is now almost DEBT FREE. The company is tentative to declare its results on the 2nd week of August, 2014, according to the sources, who refused to be named. After the board meeting, the FY14, annual report will be also be out. It is to be remembered that PVP Ventures Ltd owns 70-acres of land parcel situated in the heart of the Chennai and about 4 km from Chennai Central Railway Station. This land is under joint development with Unitech Limited and Arihant Housing & Foundation Limited. Going by the response to the first few phases of this project, it is all set to be one of the largest realty projects in South India. Over the next few years, this project is expected to yield approximately Rs.1500 crores to PVP Ventures Ltd. Meanwhile, David James will be unveiled as the player-manager of the Kerala Blasters, which is the Kochi-based franchisee of the Indian Super League (ISL) owned by cricket legend Sachin Tendulkar and his partner Prasad Potluri of PVP Ventures Ltd. The scrip is therefore, moving towards Rs.11, in the coming days. 

As expected IVRCL Ltd (Rs.23.05), today formed a double bottom, and bounced from the support. The scrip should be accumulated at all declines as after the approval of any CDR package, the share price of a company, generally shoots up, Viz. Suzlon Energy Ltd, A2Z Maintenance Engineering Ltd, etc. 

A2Z Maintenance Engineering Ltd, which was recommended here in this blog, at around Rs.11-12, today hit anther upper circuits at Rs.33.35. When I recommended the scrip, few months back, many rebuked me; saying when even Rakesh Jhunjhunwala is selling his holdings, why I am recommending this kind of counter? Now they have mud on their faces.

Continuing the upward journey, Nifty closed with a huge gain of 27.90 points today at 7795.75. It was earlier mentioned to the Premium Group members, that, the bounce back from the level of 7442 and a rise of 263 points last week clearly showed buying interest at lower levels. A recovery after 5% correction was very much expected which came. However the area of 7800, being the previous high, is attracting some profit booking. Moreover, to add to the fundamentals, Indian Rupee strengthened the most in more than a week and the government bonds gained as a pickup in seasonal rainfall tempered the concern, that inflation will accelerate. According to Bloomberg: The deficit in the June-September monsoon, which accounts for more than 70% of India’s annual rainfall, has narrowed to 27% of the 50-year average, the weather department said yesterday. The gap was 43% on July 11. Gains in India’s consumer-price index slowed to 7.31% in June, the least since the gauge was introduced in January 2012. In such a scenario, the investors are suggested to focus once again on the small and mid cap counters (especially from the construction/ real estate and banking space) for some superb returns going forward; as large caps could consolidate around this range for some time and the RBI could either keep the rates unchanged or go for a slight cut. It seems the Bulls are in full control of the affairs in Dalal Street.

WINNING STROKES: THINK DIFFERENT

SKS Microfinance Ltd, recommended at Rs.125.50--126, moved to Rs.127. But those who have bought today, will definitely smile tomorrow, as today's fall was healthy and will bring in fresh money in the markets. The inflation is coming down and the exports have started to improve, which augurs well for the bulls.

Today, the stock A2Z Maintenance & Engineering Services Ltd was recommended to this Free Blog at Rs.19.10. But, I feel some people sold out the shares of A2Z Maintenance & Engineering Services Ltd, on undue fear, that the ace investor Rakesh Jhunhunwala has sold a very small stake in the company shares in March, 2013. But what they fail to understand is that, last year, Rakesh Jhunjhunwala, last year (2012) bought 14.30 lakh shares of the company in NSE at Rs.100.03 a share, and 5.70 lakh shares in BSE at Rs.100, wife Rekha Rakesh Jhunjhunwala bought 6.50 lakh shares in BSE at Rs. 100.06 a share. Through the deals, the noted investor and founder of investment firm, Rare Enterprises, has pumped in Rs. 26.51 crore to buy 26.5 lakh shares or a 3.57% stake. According to a report, CLICK HERE,  published on March 13, 2013, in Business Standard, Rakesh Jhunjhunwala, along with Rajeshkumar Jhunjhunwala, Rekha Jhunjhunwala and Sushila Gupta collectively sold 1.03 million shares representing 1.39% stake in the company on March 7 and March 8. Post sale, the combined holding of these entities has declined to 19.91%, the company said. Rakesh Jhunjhunwala and his family which held 22.68% stake in the company at the end of September 2012 quarter have reduced their holdings by around 3 percentage points in the past six months.So, how is that such a small sell of stake have too much impact on the bottomline of the company? Also, he might be needing some urgent money for private use but further dilution is not expected, as the current price is much below his acquisition price, which is above Rs.100. Moreover, with the interest rate trajectory becoming favourable for the EPC companies and power sector expected to get re-rated, we can look for better days ahead for this company. Another thing which is worth noting is that RK also reduced his stake in Titan Industries, but why it  is still near its 52-week high price? Just think!! CLICK HERE. Therefore, this logic, one has to sell because the Big Bull has reduced his stake is misnomer and the stock price would soon move up. Those who have bought today, please try to increase your holdings but do put a STOP LOSS, at Rs.16.
Accumulate Suzlon Energy Ltd (CMP: Rs.14.01) on all declines. The company has an order book of Rs.40, 000 Cr plus and its working capital requirements has more or less stabilized. Besides there is a moratorium in paying interest rate, interest rate reduction, etc, which are not factored in the current price.