Granules India Ltd: Riding on the good FY13 numbers

CMP: Rs.112.25

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Granules India Ltd., a fast growing pharmaceutical manufacturing company, came out with decent set of numbers for its fiscal year 2013 ended March 31, 2013, inspite of working in a challenging environment. Granules India Ltd's consolidated net sales increased by 17% to Rs.764 Cr. while its consolidated net profit increased by 9% to Rs. 33 Cr.

Financial Highlights for Fiscal Year ended March 31, 2013: 

• Net Sales: Rs.764 Cr, an increase of 17% compared to Rs. 654 Cr. in FY12 

• PBT: Rs.46 Cr, an increase of 8% compared to Rs.43 Cr. in FY12 

• Net Profit: Rs.33 Cr., an increase of 8% compared to Rs.30 Cr. in FY12.

The Company reported sales of Rs.204 Cr, its highest ever, in Q4FY13, an increase of 9% compared to the comparable quarter in FY12. In addition, PBT before FIX increased by 15% to Rs. 18 Cr. 

Granules also announced the completion of the expansion at its Gagillapur Facility. The Company has commenced operations of the new capacity and expects to scale up operations over the next several months. Due to the delay in the scale up of the new capacity, margins slipped since the Company incurred costs to run the new facility without a concurrent increase in production. The Company expects margins to increase since production is increasing at the facility. 

"While we faced a setback in scaling-up our formulation expansion, we are optimistic for the future. Our strategy has enabled us to entrench ourselves within our industry and become synonymous with the products we produce. Due to our ability to provide high-quality products at a cost effective price, we have been able to work closely with market leaders which has resulted in sustainable revenue. We have made significant improvements over the past year and believe our foundation is stronger than ever. In FY14, we'll continue to shift to formulations which will result in an improvement in profitability," said Krishna Prasad, Managing Director of Granules India.

About Granules India Ltd (BSE Code: 532482; NSE Code: GRANULES): Granules is a fast growing pharmaceutical manufacturing company with world class facilities and is committed to manufacturing excellence, quality and customer service. The Company produces Finished Dosages (FDs), Pharmaceutical Formulation Intermediates (PFIs) and Active Pharmaceutical Ingredients (APIs) for quality conscious customers in the regulated and semi regulated markets. Granules support customers with unique value, extensive product range, proactive solutions and a global network of associates. 

The Company's global presence extends to over 300 customers in 60 countries through offices in India, U.S., U.K., China and Colombia. Granules offer all three components of the pharmaceutical value chain which gives the customers flexibility and choice. Granules has the largest PFI facility in the world with an industry leading 6 ton batch size. The Company has its own ANDAs and dossiers which enable customers to quickly enter a market instead of filing their own applications.

Granules has a highly skilled regulatory affairs department that can offer customers support and can help them navigate through regulatory issues.
 
Granules has strengthened its advantage through its Operational Excellence (OE), department which looks at every step of the manufacturing process in order to gain efficiencies and has also implemented systems that have standardized quality and reduced variation. The Company's OE program is regularly cited by the MNCs as a "best in class" program and is the comparative advantage that lets Granules provide world--class quality products at a lower cost than its competitors. 

The adoption of the OE philosophy by Granules has earned it several recognitions including, the Economic Times Manufacturing Excellence Awards 2011. Granles has recently been recognized as India's Most Admired Company in Exports & India's Most Admired Company in Bulk Drugs at the 5th Annual Pharmaceutical Business Leadership Awards. Additionally Granules has also received Outstanding Exports---Formulations award 2011-12 from Pharmexcil. It is a dividend paying company.

The scrip of Granules India Ltd was recommended to the Paid Group and to those who are trading through my recommended brokerage house today at Rs.110.  Join my service/s and be ahead of others. 

Important news of the week:

19/03/2007 PBA Infrastructure Ltd. PBA Infrastructure Ltd has informed BSE that the following contracts awarded to the Company, from Brihanmumbai Mahanagarpalika, Mumbai. The details of the contracts are given below: 1. E-194: Concreting and improvement of side strips of the roads and allied works in M/West Ward: a) R C Marg from Tembe Bridge to Hemu Kalani Marg b) Road No. 15 from DK Sandu Road to RC Marg c) Road No. 17 from DK Sandu Road to RC Marg Contract amount is Rs 8,45,00,000/-. 2. E-197: Concreting and improvement of Roads 'S' & 'T' Ward: a) Swapna Nagari road b) Goshala road Improvement of roads and side strip in Paver blocks in 'S' & 'T' Ward Contract amount is Rs 20,08,30,000/-. 20/03/2007 Maral Overseas closes Jammu unit Maral Overseas has shut down its Jammu unit due to increased cost of expenditure.The company has taken all necessary steps to implemented the voluntary retirement scheme for the employees. 20/03/2007 MSK Projects with its consortium bags contract worth Rs 590 crore MSK Projects India and its consortium has been awarded the contract for repairing and maintaining Bhopal-Dewas Road on BOT basis by Madhya Pradesh Road Development Corporation.The cost of project is Rs 590 crore with subsidy component of Rs 81 crores. 21/03/2007 Essar Shipping cancels delisting on poor response Essar Shipping today announced that its parent Essar Shipping & Logistics Ltd's plan to delist its shares from stock exchanges failed following the poor response from the retail shareholders. The retail shareholders tendered shares less than what the promoters wanted to scale up their stake in Essar Shipping to 90 per cent, a requirement for delisting. The shareholders offer to sale of 60.0 million shares fell short of the promoters' requirement of 71.8 million shares. Promoters now hold 76 per cent stake. Essar Shipping now will continue to remain listed with the stock exchanges and the shares tendered would be returned to the public shareholders. The delisting of shares was proposed in line with the Essar group's plan to consolidate and restructure businesses. The floor price of the reverse book building was fixed at Rs 31.62 per share. Market sources say the maximum prices quotes for delisting proposal was at Rs 50. There are few quotes as high as Rs 75 per share, they add. The cancellation of the delisting hammered down the share prices of Essar Shipping. The stock lost 5.94 per cent to Rs 40.35 on a flat Mumbai market today. Industry sources said the cancellation of the delisting proposal might delay the Essar Group's plan to do a la Vedanta_consolidate business into parent companies and get them listed with foreign exchanges, like Vedanta Resources of the Anil Agarwal did some years ago. However, Essar Group sources said they had no immediate plan for overseas listing. Essar Group has also initiated moves to delist Essar Oil. Said Amitabh Chakraborty, President-Equities, Religare Securities: 'This shows the level of investors' activism. The shareholders are very much aware about the business of the company that they have invested and they are certain about the prices that they can sell off.' JM Morgan Stanley was the manager to this offer on behalf of ESLL and Essar Investments. The public announcement on this regard was made on February 13 and bid had closed on March 09. 21/03/2007 RBI nod for 8 DCB branches Development Credit Bank has received the RBI permission to open eight new branches in India. The bank will be setting up the branches over a period of six months, it said in a statement. With this, the number of branches will increase to 75. In addition, the bank has five extension counters. 22/03/2007 Chambal Fertilisers to buy tanker from Hyundai Chambal Fertilisers & Chemicals has signed shipbuilding contract with Hyundai Heavy Industries, South Korea for acquiring an Aframax tanker (dwt 1,05,830).The vessel is expected to be delivered in April 2010. 22/03/2007 Granules India Ltd. Granules India Ltd has informed BSE that the shareholders at the Extra Ordinary General Meeting (EGM) of the Company held on March 21, 2007, have unanimously approved the issue of 22,11,200 equity shares of the Company of the face value of Rs 10/- each fully paid-up on preferential basis to Ridgeback Capital Investment LLC or their affiliates at a price of Rs 105.50/- per share (including premium). 22/03/2007 Hiran Orgachem Ltd. Has allotted 18,66,600 equity shares of face value of Rs 10/- each upon conversion of 18,66,600 Optionally Fully Convertible Warrants (OFCWs) which were allotted on preferential allotment basis in accordance with the resolution passed by the members at the Extra-Ordinary General Meeting held on September 09, 2005. 22/03/2007 IMP Powers bags order worth Rs 4 crore IMP Powers has received an order worth Rs 4 crore from Rajasthan Rajya Vidyut Nigam to manufacture 100 MVA 230 kv class Transformers. 22/03/2007 Jai Balaji Sponge Limtied Jai Balaji Sponge Ltd has informed BSE that pursuant to the order of the Hon'ble High Court at Calcutta, a meeting of the Equity Shareholders of the Company will be held on April 12, 2007, to consider and to approve the proposed Scheme of Amalgamation of Shri. Ramrupai Balaji Steels Ltd with the Company. 22/03/2007 Kovai Medical Center & Hospital Kovai Medical Center & Hospital Ltd has informed BSE that the Company has entered into a Memorandum of Understanding (MOU) with Idhayam Hospitals Erode Ltd on February 27, 2007 at Erode, Tamil Nadu. Idhayam Hospitals Erode Ltd has been incorporated as a Public Limited Company in the year 2001 and its Registered Office is situated at 181 Perundurai Road, Erode, Tamil Nadu. It is proposed to acquire 100% stake of the transferor Company and make it as the Company's wholly owned subsidiary. It is a closely held Company with a paid-up capital of Rs 372 Lacs. At present the Transferor Company is running a 50 bedded Hospital at Erode which is exclusively for Cardio-thoracic patients. The agreed purchase consideration is Rs 925 Lacs which involves discharge of unsecured loans, one time settlement with Indian Overseas Bank, Main Branch, Erode, Cost of Medical Equipments and payment to shareholders. The whole process is expected to be completed within a period of two months. 22/03/2007 Pritish Nandy Comm to allot equity shares On 21 March 2007, Pritish Nandy Communications' board has approved to allot 40 lakh equity shares to qualified institutional buyers (QIBs). 22/03/2007 Suryajyoti raises $10 m Suryajyoti Spinning Mills Ltd has raised $10 million by issuing foreign currency convertible bonds (FCCB). The bonds, which have been listed on the Singapore Stock Exchange, are convertible into shares at Rs 85 a share. These funds would part finance the new bottom-weight fabric facility that is expected to begin production in 2008.

 Winning Strokes

The domestic bourses are trading flat. The BSE Sensex is seen trading at 57,475.32 down 89.51 points (-0.13%), while the Nifty50 is seen at 17,109.55 down 23.65 points (-0.13%). The indices are expected to consolidate around the current levels after the GDP numbers, while the action is likely to shift to the small and mid cap counters.

Meanwhile, the goods and service (GST) revenue collections of Government of India, stood at ₹1.12 lakh crore, crossing the crucial mark, for the 2nd consecutive month as compared to ₹1.16 lakh crore in July and ₹92,849 crore in June. The robust GST revenues are likely to continue in the coming months too, Ministry of Finance said on Wednesday. This augurs well for Banking and NBFC Sectors.

#Buy the shares of RBL Bank Ltd near the CMP of Rs.170.55, for short term targets of Rs.177/192, SL: Rs.161.

#Buy the shares of Granules India Ltd at Rs.340/343, T: Rs.358-370, SL: Rs.329. KR Choksey is bullish on Granules India and has given a buy rating on the stock with a target price of Rs.459 in its research report dated July 28, 2021.

#Buy the shares of Reliance Capital Ltd near the CMP of Rs.14.40, for targets of Rs.31/32. 

#Buy the stock of Patel Enginnering Ltd near the CMP of Rs.15.50, for short term targets of Rs.19/21. This is a turnaround case and hence should give multi - bagger returns going forward. The company has a humongous order book of around Rs.15, 000 crores.

Volatile market sees BSE, NSE settle at Lifetime Highs: Mid and Small Cap Indices do well: Conart Engineers Ltd Shines on the back of Huge Volume: Chandra Prabhu International Ltd rises on the news of Property Buzz and New Contracts: BSEL Infrastructure Realty Ltd expects a favourable Judgement from Court, on Pavel Mega Project fiasco, as Reliance takes a re-look at setting up a SEZ there: Gravity(I) Ltd consolidates, even as the company diversifies into retailing: Silverline Technologies Ltd loses Silver Lining, as 2 Cr shares change hands:

The market witnessed across the board buying and the Sensex kept on advancing as trading progressed. India’s premier index, the BSE Sensex, struck an all-time high of 13,303.85 while the S&P CNX Nifty touched a high of 3,842.40, during the late-afternoon session of trade. The Sensex’s previous all-time high was at 13,000.69, on 7 November 2006. The market was banking on a strong set of industrial production figures, and a dip in inflation. The BSE Sensex surged 145.42 points (1.11%), to end at 13,295.36. This is also its all-time closing high, the low for the day being 13,104.98. The S&P CNX Nifty rose 45.25 (1.19%), to settle at 3,841.65. The market-breadth, which was strong in opening trade, kept on easing, but ended marginally positive. On BSE, 1,274 shares advanced, compared to 1,255 that declined. As many as 88 scrips remained unchanged. The total turnover on BSE amounted to Rs 4,541 crore, higher than Thursday’s Rs 4,263 crore. Among the 30-Sensex pack, 23 advanced while the rest declined. Banking stocks were in flavour on renewed buying. The BSE Bankex surged 159.70 points (2.43%), to 6,736.57. Private sector ICICI Bank was the top gainer, up 4.35% to Rs 834, on a volume of 5.82 lakh shares, after its ADR rose more than 3% on the New York Stock Exchange (NYSE) on Thursday. It had struck an all-time high of Rs 838, while its low was Rs 795. Centurion Bank of Punjab (up 7.33% to Rs 28.55), HDFC Bank (up 2.54% to Rs 1,043), SBI (up 0.24% to Rs 1,133.20), UTI Bank (up 1.67% to Rs 445), Kotak Mahindra Bank (up 1.68% to Rs 361.15), Union Bank of India (up 1.63% to Rs 130.65) and Union Bank of India (up 1.59% to Rs 130.60) also advanced. Index heavyweight Reliance Industries (RIL) surged 2.13%, to Rs 1,288.25, on a volume of 26.62 lakh shares. Reliance Industries (RIL) said on Thursday, its board had approved raising up to $2 billion through loans and bond issues, or a combination of fund-raising instruments. Software major Infosys rose 0.51%, to Rs 2,148.90. The stock rose for the fourth day in a row today, after shareholders on Tuesday approved a sponsored ADR issue. Aluminium maker Hindalco Industries was up 0.25% at Rs 183.20, and its state-run counterpart Nalco gained 0.62%, to Rs 200 after three-month aluminium futures rose 4% on the the London Metal Exchange, on Thursday. Cipla was the top loser, down 1.29% to Rs 267.75, on a volume of 2.28 lakh shares. Bajaj Auto slipped 0.37% to Rs 2,595. It has ventured into the $ 6 billion Indonesian bike market with its flagship model, the 180 cc Bajaj Pulsar. The company also plans to set up a regional production base in Indonesia by investing $50 million over the next three years in a production base and distribution network. Reliance Industries (RIL) was the top-traded counter on BSE with a total turnover of Rs 338.09 crore. Indiabulls Financial Services followed with a turnover of Rs 164.48 crore. It surged 6.81% to Rs 509 on a high volume of 32.02 lakh shares. It spurted to a lifetime high of Rs 527.40, in opening trade. Oil refining and marketing companies declined after US crude oil futures in Asian trade touched $ 61 a barrel. HPCL (down 2.07% to Rs 299.65), BPCL (down 2.10% to Rs 364) and Indian Oil Corporation (down 0.76% to Rs 485) declined. Punj Lloyd (PLL) jumped 6.43% to Rs 932, after it bagged an EPC order worth Rs 803.70 crore for the Doha Urban Pipeline Relocations Project (DUPRP) from Qatar Petroleum. With this, the order backlog for PLL group is Rs 13,394 crore. This is the total value of unexecuted orders as of 30 September 2006, and new orders received till date. Simplex Infrastructures jumped 7.95% to Rs 387, on bagging a Rs 212 crore contract from Delhi Metro Rail Corporation. Indian Hotels rose 1.48% to Rs 150.80, after it acquired a luxury hotel in the US. Taj Hotels Resorts and Palaces, a unit of Indian Hotels Company, said on Thursday it had agreed to buy The Ritz-Carlton Boston hotel, the longest continuously operated Ritz-Carlton hotel in the United States, for $170 million. The 273-room luxury hotel will be renamed Taj Boston. Bulk drug maker Granules India gained 2.50% to Rs 91.30. Its board approved raising up to $20 million through convertible securities, or through overseas issues. Hindustan Zinc rose 1.21% to Rs 964.45, as three-month zinc futures touched a record high of $ 4,545 a tonne on the LME, on Thursday. India's wholesale price index rose 5.09%, in the 12-months to 28 October, lower than the previous week's 5.41% due to a fall in the prices of manufactured products, data showed on Friday. India's industrial production rose 11.4% in September from a year earlier due to robust manufacturing and electricity output, government data showed on Friday. Output had grown at 9.9% in August. Manufacturing production rose 12% in September from a year earlier, compared with 11.1% in August. The Nikkei booked its lowest close in more than a month on Friday, slipping 0.53% after Japanese machinery orders data came in weaker than expected and heightened concern about the outlook for the world's second-largest economy. Investors punished machinery companies such as Kubota. The Nikkei finished down 86.14 points, at 16,112.43, its lowest close since 4 October 2006. The Hang Seng index lost 61.72 points (0.33%), to 18,891.14. FIIs were net equity sellers to the tune of $ 1.40 million on 8 November, while mutual funds were net sellers of Rs 275 crore in equities for the same day. US stocks fell for the first time in three days on Thursday, led by a drop in the shares of big drug makers and health-care companies as investors worried that a Democrat-controlled Congress may curb prices. A jump of more than 2% in crude price and a weaker-than-expected reading in a gauge of consumer sentiment, added to the weaker tone. The Dow Jones industrial average was down 73.24 points, or 0.60%, to close at 12,103.30. The Nasdaq Composite Index was down 8.93 points, or 0.37%, to end at 2,376.01. Oil was steady above $61 a barrel after surging more than 2% on Thursday. OPEC is lowering output and members have said it may cut supply further in December -- as demand is nearing its seasonal peak due to the Northern winter.[With Inputs from Internet] Best wishes, Suman Mukherjee India. www.bcozindia.com www.sumanspeaks.blogspot.com www.eindiabrokers.com Note: Many have expressed their anguish, over my BLOG, not opening with this URL-->www.sumanspeaks.blogspot.com, due to mischief played (my be) by google as I have removed their bullshit advertisements from here. If it is not opening please try the link below:

www.pkblogs.com/sumanspeaks [ It is via a Pakistani web-site]

Why gold smuggling is on the rise in India

Over 85% of gold imports in India are in jewellery

14 March 2014: Indians traditionally hoard gold in the belief it will bring financial security. Now India, the world's largest consumer of gold, is seeing a record rise in smuggling, reports Shantanu Guha Ray.

An estimated 700kg of gold is smuggled into India every day.

Officials at India's Financial Intelligence Unit (FIU) say the country has not seen such a sharp rise in contraband gold for two decades.

They claim smugglers are using innovative ways to bring in the metal illegally.

Sometimes gold is melted into seed-shaped chips and hidden in dates from Dubai, or ground into granules and mixed with other metals to look like ore. The metal is also being converted into gold belt buckles and torch batteries.

The smuggling is becoming increasingly difficult to contain, admit regulators.

Officials from the Directorate of Revenue Intelligence say smugglers are regularly using the air route, taking advantage of airlines that club international routes with domestic ones using the same flight.

'Unprecedented'

First, carriers smuggle gold abroad and hide it in the aircraft, while another set of carriers board the same flight on the domestic route and walk away with the consignment.

"This is unprecedented and unbelievable. A new industry has emerged in India - it is a very dangerous situation," says Konal Doshi, a top official at the Gems and Jewellery Export Promotion Council (GJEPC), a Mumbai-based body of the Indian Commerce Ministry.

According to his figures, smuggling rose by almost 300% between March 2013 and April 2014.

Triggered by a rise in duty on imports of gold jewellery introduced in June last year, smuggled gold worth 2,500m rupees ($41.18m; £24.75m) was confiscated at various ports and airports between March and December last year, up from 500m rupees during the same period in the previous fiscal year.

Last year, the government hiked the import duty on gold three times, eventually to 15%, to curb demand for the precious metal and rein in a widening current account deficit that had touched a record high of $88bn (£53bn) in 2012-13.

A current account deficit is the difference between inflow and outflow of foreign currency and occurs when imports are greater than exports.

The government now expects the deficit to fall below $50bn in the current financial year, ending 31 March.

Gold imports, which had peaked at 162,000kg in May 2013, came down to 19,300kg in November after the government hiked the duty.

But the smuggling of gold, mainly from Dubai and Sharjah, where the metal is cheaper, is on the rise, authorities say.

The GJEPC has asked the finance ministry to slash the import duty on gold. Sonia Gandhi, the president of the ruling Congress party, has also written a letter to the commerce ministry seeking the removal of the curbs.

'Back to the 1990s'

But Delhi is not keen to cut the duty yet.

"At present, there is no proposal under consideration," Minister of State for Finance JD Seelam told parliament recently.

The main opposition Bharatiya Janata Party says the government has reintroduced controls that were previously dropped by Congress in 1993 in order to curb smuggling and money laundering.

"But we are back to the 1990s. Gold is being smuggled in from our neighbouring countries," senior BJP member and former finance minister Yashwant Sinha says.

DRI officials admit that less than 1% of the contraband gold is confiscated by law enforcers.

"The move to increase import duty is not working. In India, everyone - even the poorest of the poor - invests in gold. This move can only work if all the smuggled gold is confiscated by the regulators," says economist Surjit Bhalla.

But that looks like a near impossible task.

Shantanu Guha Ray is a Delhi-based journalist.

Courtesy: BBC News

Tit- bits

Photo: SCB Global Network 

At the  time of writing the BSE Sensex was seen trading at 33,617.39 up 313.87 points (+0.94%) while Nifty was trading at 9,918.10 up 91.95 (+0.94%).

The domestic indices are likely to come off from these levels, as market participants are afraid of taking leverage positions at current levels amid a rise in volatility.

What is irrational and hilarious is that when this quarter GDP growth of India would be near ZERO,  the Nifty is near 10000. Therefore, a stock market contrary to the popular perception is NEVER a barometer of any economy in the short term -- though in the long term markets will reflect the macroeconomic characteristics of any economy.  The point to drive home is that: Stock Markets will rise, if people BUYs stocks and will touch nadir due to sentiment turning extremely pessimistic. In short term,  rise or fall of tbourses has nothing much to do with the fundamentals of any economy, it is purely sentiment driven. 

With Indians counting themselves among the 7 - worst Covid - 19 affected nations, this irrational upmove of the indices defy all logic and imagination. This shows how, people all over the world are a prisoner of the term "Herd Mentality".

Narendra Modi government have been presenting us with, a rickety economy since the ill conceived demonetisation, which was touted to kill the burning economic evils in one go, was implemented, with all force and tall talks; bereft of any accountability or scruple. Now this Covid - 19 episode is likely to make things even worse, if Rnot worst. The unemployment figures according to some estimates have already touched 14 crore plus. What will happen in the next few months is an obvious conclusion. Those who are saying the worst is behind us, are simply building castles in air. Just wait and watch!!

Besides,  higher margin requirements in the F&O segment is also detering the punter to go high leveraged.

The benchmark indices added another 3% on June 1, the first day of lockdown 5.0 on the hope of a fast economic revival, as the government allowed resuming economic activities in non-containment zones.

However,  with Rs.20 lakh crore economic package for Covid - 19 pandemic, and Rs.1000 crore for the Amphan affected people, and with a very low visible revenue stream during the last couple of months, this government is virtually at the end of its tether.  

I  don't agree with those theories which speak of higher revenues due to robust economic package. With so much uncertainty still wrapped around Covid - 19, it would be beggar our imagination, if we underestimate the loss in GDP growth, due to this catastrophe.

Gold prices are likely to come down as more and more countries ease lockdown curbs, lowering the risk sentiment. On MCX, gold futures were down marginally at ₹47,137 per 10 gram.

Moreover,  Moody's downgrading of India's sovereign rating on Monday., will not go well with FPIs, DIIs nd HNIs. 

In such circumstances, I foresee the Nifty to test 9300, before touching 10000.

Meanwhile, Granules India Ltd hit Rs.179.75 intraday, after it was recommended by a consultancy in Money Control. 

SKM Egg Products Export Ltd also touched Rs.37. The demand for eggs is likely to be high in global markets in the short term, primarily due to poultry industry suffering in the hands of Covid - 19 catastrophe.

Also,  my recently recommend SAIL made a high of Rs.31.10, while HINDALCO Industries Ltd made a high of Rs.143.50, intraday.

The scrip of National Fertilisers Ltd touched Rs.27.70, intraday, today. It almost doubled from the price of Rs.14.70, it made post nation wide Lockdown. I have been recommending a buy on dips for the scrip since some time.  

I would suggest profit booking (if any) and wait on the sidelines, for the arrival of the monsoon, in the entire country. 

Updates on some of my recommendations

1. Granules India Ltd, was recommended around Rs.110-112.50.

The scrip touched an all time high around Rs.940.55 on 22/09/2014 (on my birthday). 

2. Multi Commodity Exchange of India Ltd (MCX Ltd) was recommended around Rs.255-270. The scrip made a high of high of Rs.895, on 21/07/2014.

3. B F Utilities Ltd was recommended around Rs.129-130. The scrip made a high of Rs.817.95 on 22/07/2014.

4. Mannapuram Finance Ltd was recommended around Rs.15.50--17.70. The scrip made a high of Rs.31.60  on 19/09/2014.

5. Opto Circuits Ltd was recommended around Rs.25.50-26. The scrip made a high of Rs.44.50 on 22/05/2014.

6. HCC Ltd was recommended around Rs.12.70-12.80. The scrip made a  high of Rs.49 on  01/07/2014.

7. P C Jeweler Ltd was recommended below Rs.88. The scrip made a high of Rs.278 on 23/09/2014.

8. Sarda Energy and Minerals Ltd was recommended around Rs.107.60. The scrip made a high of Rs.402.60 on 21/08/2014.

9. A2Z Maintenance and Engineering Services Ltd was recommended around Rs.11.45. The scrip made a high of Rs.36.40 on 25/07/2014.

10. Prakash Industries Ltd was recommended around Rs.49-50. The scrip made a high of Rs.123 on 21/07/2014.

These are some of scrips which gave good returns to the investors over a period, apart from others like IVRCL Ltd, Entegra Ltd, SBTL, Gitanjali Gems Ltd, IRB Infrastructure Ltd, Ahmednagar Forgings Ltd, etc. 

Today, while Pipavav Defence Ltd (Rs.39.15) and Resurgere Mines and Minerals Ltd (Rs.1.65) hit the buyer freezes; Gitanjali Gems Ltd (Rs.63.15) also closed above some crucial levels. 

Pipavav Defence and Offshore Engineering Company last year announced a new order for offshore vessels from a European client. The order was worth Rs.595 crore with an option to supply two more specialised vessels valued at Rs.1200 crore. The global market for specialised offshore vessels stands at US$10 billion. The company, with its well diversified order book among the defence, commercial and offshore segments, intend to focus on the defence and offshore vessel segment. The defence segment holds around 50% of the order book followed by the commercial segment and offshore segment. New orders in the offshore segment coupled with repairs and maintenance orders augur well for the company as it reduces exposure to the commercial segment. Pipavav Defence and Offshore Engineering Company spanning over 861 acres of land with two dry docking facilities of 662 m x 65 m (Dry Dock-1) and 750 m x 60 m (Dry Dock-2 under construction) is one of the largest “modular” shipbuilding facilities in India. The shipyard is capable of accommodating 400,000 dwt capacity ships along with construction and repair of a wide range of vessels starting from coastal and naval vessels together with repair and fabrication of offshore platforms and rigs. It also has a dedicated offshore yard with 175 m x 16.89 m quay consisting of both launching and loading platform together with installation of bollard and mooring rings. 

Gold smugglers turn creative to beat law

[Editor: Some persons in high places are probably getting some benefits out of increased smuggling activities in India. A friend of mine, commented yesterday in Facebook, that Indian Policies on Gold Imports are now probably  guided by the likes of "Dawood Ibrahim-Gang," who wants an artificial scarcity, to push their items through, secret conduits in India, at a high premium. Also, as mentioned earlier too, there might be officials in the government or politicians who are benefiting from any such clandestine deal. Or else, the government of India's argument of Gold Control to fix the CAD, does not look too convincing; especially when most of the opposition parties are maintaining a stoic silence on this vital issue] 

New Delhi, Feb 9, 2014:  Gold melted into seed-shaped chips and hidden in dates coming from Dubai, bars broken into granules and mixed with other metals to make it look like ore, belts with one kg gold buckles and torches carrying gold batteries. As gold smuggling reaches unprecedented high and authorities crack down, smugglers are devising ever-new ways to bring in the yellow metal.

Financial intelligence agencies say the past one year has seen some of the most outrageous modus operandi by smugglers that have included methods requiring a lot of time and expenses indicating how lucrative smuggling of gold has become. This fiscal has already seen an almost 300% rise in gold smuggling compared to last and is expected to continue the rally, say sources.

Following the 10% levy of import duty on gold, heavy smuggling due to unabated demand was expected and agencies have been cracking down heavily leading to smugglers devising new ways. Till December this fiscal, agencies had seized Rs 250 crore worth of smuggled gold at various ports and airports. In the same period last fiscal, agencies had mopped up only Rs 50 crore worth of smuggled gold. For the whole of 2012-13, the figure stood at only Rs 100 crore.

According to sources in Directorate of Revenue Intelligence (DRI), only two months ago, a passenger coming from Dubai was intercepted at Pune airport with a huge consignment of dates. Agencies had information that he was carrying gold but could not find it anywhere on his person or baggage. A close examination of the dates by ripping them open, however, revealed that it had seeds of gold. A total of 400 g of gold was recovered.

Similarly, a couple of weeks ago, customs in Bangalore found a consignment of chairs coming in by air cargo to be suspicious. When the chairs were ripped open, its springs turned out to be made of gold weighing 1.5 kg. Last week, authorities at Ahmedabad airport apprehended 5 kg gold being brought in as ore, for which one has to cough up only 5% duty.

"Smugglers are taking great pains in hiding gold. One passenger was caught recently wearing a belt with 1 kg gold buckle. He had plated it with rhodium which ensured even the metal detector does not find it. Another one had turned his gold into battery shapes to fit in torches. We would not have caught them if we did not have prior intelligence," said a DRI official.

Courtesy: The Times of India

Tit bits

 Photo: investopedia

Hope you are safe at home or at workplace. I'm not able give too much time to blog because of my preoccupation with other fields.

Anyway, to begin with on last Friday, the BSE Sensex closed at 32,424.10 up 223.51 points (+0.69%) while Nifty finished the day at 9,580.30 up 90.20(+0.95%). 

But exuberance is only due to liquidity unleaded by various countries across the globe and has no connection with the ground realities of Indian economy.

The latest economic fugues show that the GDP growth has plunged to a 11-year low in FY2019-20 at 4.2%. This is way off the mark as far as budget estimates made in the February 1, 2020 and is likely to have severe implications on with government borrowing and interest rates. To make matter worse, the growth in the January-March 2020 quarter nosedived to 3.1%, the lowest since the GDP base year was revised to 2011-12.

This suggested that the economy had slowed significantly, well before Covid-19 hit us below the belt. My apprehensions came out to be true, as I have expressing my displeasure since the last 4/5 years regarding the way the current NDA government is functioning under Narendra Modi band Amit Shah -- the Jumla Brigade. 

My last call was only positive for the commodity sector, where some upmove did come during the last week, giving a decent return to those who invested in commodity based companies, like SAIL (Rs. 30.15), HINDALCO (Rs.138.85), Tata Steel (Rs.295.20), etc. 

But the irony is that if GDP growth starts to travel south,  then one sector can't perform well in isolation. 

Therefore, I see a sharp correction in the markets today or tomorrow, even though some of world economies are in relaxation mode, for Covid - 19 Lockdown. 

As a result of fundamental issues the Nifty is likely to face strong resistance at 9670 and is expected to touch 9300 on the downside. The traders can play in this zone keeping a SL at 9750 coresponding to Nifty spot.

#Meanwhile my recommended SKM Egg products (Rs.35), did show some upward movement, as more and more restuarnts, hotels and motels opens up, spiking up the demand for eggs. Stay put,  with a SL at Rs.31.

#Another, scrip where you invest is Granules India Ltd (Rs.171), at around Rs.161/162, post correction or in intra day dips. I have mentioned the details in my Facebook post.

#The gold prices in India remained range bound during May, however the outlook is positive as more and more Coronavirus cases comes up. Meanwhile, Comex gold gained 3.4% to settle at $1,751.7 an ounce by the end of May.

#There is a disturbing news that the lenders of Reliance Naval and Engineering (Rs.1.05) has asked for EoI to sell the compamy. ADA Group is bankrupt and hence it would be prudent to exit out of all stock positions. 

Tit - bits

Today when I'm writing this report, the  BSE Sensex was at 34,273.90 up 293.20 points (+0.86%) while NSE was trading at 10,141.60 up 112.50 points (+1.12%), taking cues from strong global markets, though there is nothing to cheer about in the Indian  economy; except those hackneyed talks of a gradual lifting of Lockdown and stimulus package -  sentiment boosters.

The market breadth was quite strong. On the BSE, shares 1,956 rose and 492 shares fell. A total of 132 shares were unchanged. In Nifty 50 index, 40 stocks advanced while 10 stocks declined.

Meanwhile, my recommended SKM Egg Products Ltd (Rs.37.30) today hit the 1st target of Rs.39, as it touched Rs.39.75 intraday. Book some profits.

Granules India Ltd also made a high of Rs.187.80, almost near the 1st target of Rs.189.

The metals (commodity) basket is doing well today also. Vedanta Ltd recommended on 25 March, in this blog around Rs.89/90 made a high of Rs.106.25 today, while Hindalco Industries Ltd touched Rs.151 today. The scrip of SAIL recommended along with the other metal counters made a high of Rs.33.80.

With so much negativity around, including Moody's downgrade, it is surprising to see the Indian markets going up piggybacking only on sentimental push -- nothing on ground in the domestic front. People are job less, with their monetary  reserves almost empty. I wouldn't suggest any fresh buy except continue to be a little positive on Metals (commodity), Telecom, Media, Brewery and IT sectors. If you are willing to compulsorily play in the markets then stick to the leaders in the above  mentioned sectors and choose beaten down scrips, from this space.

In another significant development as SC considers petition for interest waiver in loan moratorium period, RBI says doing so would make a huge dent in stability of financial institutions.

Default in repayment of loans by companies (other than financial services) up to September-end and extendable by another six months will not be counted as default under IBC. This is net negative for the banks and FIs.

This market has no head or tail. Banking stocks rose yesterday, even when the government gave 3 months moratorium on paying EMIs. I don't foresee the Indian bourses too high from here. However, in the short term a stock market is always sentiment driven.

DO YOU KNOW?

Granules India Ltd recommended on April 25, 2013 at Rs.112.25 made a new 52-week high of Rs.1,017.10 on 17th March, 2015. The company came out with good set of results for Q3FY15. The 9MFY15, EPS of the company stands at Rs.35.85. 

The investors are therefore suggested to book at least 85% of the profits and hold the rest with a SL of Rs.840. One can invest the fund in either Jaiprakash Power Ventures Ltd (Rs.10.55) or Gitanjali Gems Ltd (Rs.45.90) for some superb gains in the next couple of  years. 

Market Mantra

Tulip Telecom Ltd hits another Buyer Freeze in the opening trade. The scrip was repeatedly recommended on this blog for good returns in the coming days. 

Granules India Ltd recommended a couple of days back around Rs.111--112, today touched Rs.142. It gave around 35% plus return in the lest than 4-days.Visit this blog from time to time to get one of the best investment ideas. 

Today, most of the ADA Group (Anil Ambani) Group stocks are moving up. Reliance Communication Ltd (Rs.101, up ~8.5%), Reliance Power (Rs.74 up ~4%), Reliance Mediaworks Ltd (Rs.54, up ~3%), Reliance Infrastructure Ltd (Rs.384, up ~4.8%). Many, I feel do not know what Reliance Mediaworks Ltd is the erstwhile, Adlab Films Ltd, the giant in the media space.
My recommended IRB Infrastructure Ltd which has a massive order book positions is also doing well today and it touched Rs.117.65 intra-day.
Future Retail Ltd (erstwhile Pantaloon Retail) today touched Rs.153.25 and is now trading at Rs.150. This blue chip scrip in the retailing space has a great future.