P C Jeweller Ltd: Buy

CMP of Spot: Rs.332.35

Lot Size of Futures: 1500

CMP of March Futures : Rs.334.50

Premium: Rs.2.15

Change in OI: 3.91%

Short term Targets for Future: Rs.360/377

For Future-->S1, S2 and S3: Rs.327/Rs.321/Rs.315

For Future-->R1, R2 and R3: Rs.341/Rs.347/Rs.354

For Spot-->T1, T2 and T3: Rs.374/Rs.424/Rs.496

Triggers:

#PC Jeweller Limited started operations in April 2005 with one showroom at Karol Bagh, New Delhi and is today one of the fastest growing jewellery retail chain with 85 showrooms across 68 cities and 20 states. According to my sources, the company is planning to open 15 more retail counters across India.
Not only that: after lurking inflation fears in the US and meltdown of the real estate sector in India, followed by introduction of LTGT by the FM in this budget, people are shifting to gold. This is likely to keep the demand for Gold buoyant  in the coming months.

#Chief Financial Officer (CFO) of the company in an interview said that the company will stick to its strong fundamentals and their expansion plans are on track. He also clarified about having no business agreement with Vakrangee Ltd and that none of the company's promoters have sold any stake in the firm.

Vakrangee Ltd, a banking and financial services provider, on January 25, 2018 purchased 20 lakh shares of PC Jeweller Ltd for ~Rs.112 crore through an open market transaction.
The shares were acquired at an average price of Rs.561.71, which amounted to ~0.51% stake in the company. This price somewhat gives us the idea as to where the share price of P C Jewller Ltd can shoot in the short term. 

#The impact of Nirav Modi and Mehul Choksi scam though had been seen in stock price of many

Photo: Zee Business

jewelry firms on 16 February, '18, but PC Jeweller reversed the trend on that day and emerged as the top gainers in this sector. The share price of this company jumped by nearly 7% during the day.

#PC Jewellers Ltd also recently clarified that the company does not use the instruments of LUT/LOC etc in its business transactions. Moreover, it does not have any international transactions in diamond. It procures all its diamond from local markets on cash basis only.

#Though post Nirav Modi scam, bankers will become more alerted in terms of credit transfer, and considering the process of investigation, however for the companies like P C Jewelers Ltd fundamentals will speak and it will have minimal impact on getting loan from banks/financial institutions.
There is another silver lining too: according to Kotak Institutional Equities, exposure of 18 banks’ overall book (12 public sector banks and six private sector ones) to the gems and jewellery sector is only about 1% --- for now, the problem appears limited to PNB. Hence, there is no reason to get too much anxious on the credit delivery front by the banks to the Jewelry sector.

#It is pertinent to mention here that the stock of P C Jewelers Ltd fell from around Rs.580 - plus which is made in late January, 2018 and hence the change of appreciation from the CMP is very bright. It is also likely to benefit from dilution of Nirav Modi brand, due to elimination one of its major competitors in the gems and jewelry segment.

#The company stressed that it’s expansion plans are on track as planned. “We are moving ahead as per our laid down business plans of opening new stores and working on launching new collections. The company continues to witness very good footfalls and sales in this quarter as well,” it said in a clarification to the stock exchanges, early this month. PC Jeweller further said none of the company’s promoters has sold any stake in the firm (mentioned earlier) or pledged its shares as collateral with any institution. 

#With 60% of gold demand coming from rural India, the Union Budget’s focus on boosting rural and farm incomes could benefit big brands such as Titan Co Ltd and PC Jeweller Ltd. 

#There is a belief in the market that the implementation of the Goods and Services Tax (GST) has enhanced bullion purchases from organised vendors. The GST, touted as the country's biggest indirect-tax reform since Independence, introduced a 3% levy on gold from July 1, 2017 nudging customers to shift purchases to organised high-street bullion businesses from street-corner jewellers. In other words the retail jewellery segment is now witnessing a major shift of customers toward the organised players, and PCJ is a major beneficiary of the same.  The New Delhi-based Jeweler is therefore, expecting good growth in SSG (same stores sales growth) as well as in new stores segments. 

#Jewelry demand generally picks up a month before Dhanteras and continues till April-May every year due Festive and Wedding seasons; which keeps the demand for the yellow metal buoyant. Hence, going forward we could see robust performance of the company.

#The company is showing enviable performance during the last two quarters, viz.Q2FY18 and Q3FY18. PC Jeweller Ltd last month reported a 52% increase in its net profit at Rs.162.71 crore for quarter ended December on higher sales. The company, which has 84 retail jewellery stores across the country, had posted a net profit of Rs.106.97 crore in the year-ago period, the company. It is to be remembered that PC Jewellers Ltd posted a 40.83% jump in standalone net profit at Rs.150.59 crore for the quarter ended September on strong sales. Net profit was Rs.106.93 crore in the same period of the previous year.
The company said that the rollout of the goods and services tax (GST) as a very major structural change, has resulted in a major "disruption" for unorganised players in all the sectors of the economy. "Demonetisation and implementation of GST are helping us increase market share as the industry is getting organised," the company said in last November. Therefore, similar performance is likely to be exhibited in Q4FY18 too according to my sources, who refused to be named.

#Lastly, the story of investment in Gold is not Rich Vs Poor, as is commonly perceived but as a means or avenue to store wealth by a section of Indian population, especially the housewives -- and this has been going on since centuries. Hence, its demand as a hedge against inflation in the short term, in countries like UK, USA and India is expected to continue. 
2ndly, the branded jewelry stores are a play on India's ever growing retail sector, where I find immense potential after the government of India gave their consent for FDI in multi-brand retailing. 
Who knows, whether in future the International jewelry brands like Harry Winston, Cartier, Buccellati, Tiffany & Co, etc will partner with reputed Indian brands like P C Jeweller or not. If this happens then the stock of P C Jewelers Ltd might cross Rs.1000 (one thousand), as well. Also, it is worth mentioning here that Tiffany jewels are not only famous in America but now in Asia as well.

Bibliography:
i) The Economic Times
ii) Zee Business
iii) The Times of India
iv) The Hindu BusinessLine
v) Live Mint

Market Pulse

Key benchmark indices hovered in positive zone in morning trade after an initial upmove triggered by positive Asian stocks. At 11:50 IST, the barometer index, the S&P BSE Sensex, was seen at 34,061.22 up 241.72 points while the Nifty was trading at 10,466.80 up 84.1 Metal and mining stocks gained across the board. Telecom stocks rose.

Domestic stocks edged higher in early trade tracking positive Asian stocks.

The S&P BSE Mid-Cap index was up 0.95%. The S&P BSE Small-Cap index was up 0.96%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,548 shares rose and 565 shares fell. A total of 84 shares were unchanged.

Overseas, Asian stocks were trading higher as investors continue to debate the outlook for central bank policy normalization and the impact of higher bond yields. Meanwhile, Japan's core consumer price index rose for a 13th straight month in January, increasing by 0.9% from a year earlier, matching December's rate of growth, data from the Ministry of Internal Affairs and Communications showed today, 23 February 2018.

In US, the Dow and the S&P 500 closed higher while the Nasdaq slipped yesterday, 22 February 2018 as investors grappled with the threat from higher interest rates. On the data front, initial US jobless claims fell by 7,000 to 222,000 in the seven days ended 17 February 2018, marking the second lowest level since the end of the 2007-2009 recession.

Back home, Sun Pharmaceutical Industries (up 4.16%), Yes Bank (up 2.39%) and ICICI Bank (up 1.16%) edged higher from the Sensex pack.

Metal and mining stocks gained across the board. Vedanta (up 2.03%), JSW Steel (up 2.42%), Tata Steel (up 3.35%), Steel Authority of India (Sail) (up 3.01%), National Aluminium Company (up 2.15%), Hindustan Zinc (up 2.1%), Jindal Steel & Power (up 3.98%), Hindalco Industries (up 1.77%), NMDC (up 1.46%), Hindustan Copper (up 1.84%) edged higher.

Telecom stocks rose. Bharti Airtel (up 1.81%), Idea Cellular (up 0.55%), Tata Teleservices (Maharashtra) (up 1.15%) and Reliance Communications (up 0.91%) rose. MTNL (down 1.86%) fell.

Shares of Bharti Infratel fell 0.57%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

KSB Pumps gained 1.89% after net profit rose 21.1% to Rs 27.35 crore on 30.9% growth in net sales to Rs 328.19 crore in Q4 December 2017 over Q4 December 2016. KSB Pumps' board recommended dividend of Rs 6 per share for the year ended 31 December 2017. The results were announced after market hours yesterday, 22 February 2018.

Today's Calls:

#How many of you bought the shares of Reliance Infrastructure Ltd today morning at around Rs.444 reading my blog inputs.. Book some profit at around Rs.457 and wait for dips to enter.

#Buy beaten down P C Jewelers Ltd Futures at around Rs.333.15 for a short term target of Rs.377, SL: Rs.326. This stock will give up super duper returns in the short term.

It is pertinent to mention here that the stock of P C Jewelers Ltd fell from around Rs.580 - plus which is made in late January, 2018. However, it will benefit from dilution of Nirav Modi brand, due to elimination one of its major competitors in the gems and jewelry segment.  Moreover, on January 25, 2018 Vakrangee bought 20,00,000 shares of PC Jeweller at Rs.561.71 on the NSE. Earlier, the Delhi-based jewelry retailer PC Jewellers Ltd, denied that there was any reason for having worries that the company may be linked with Vakrangee, another firm that is under the scanner for allegedly manipulating its own stock. Investors were worried because Vakrangee has a tiny stake in PC Jeweler. Also, the company’s finance head Sanjeev Bhatia came on TV at the beginning of this month and said: “We have no business agreement with Vakrangee and none of our promoters have sold any stake in the firm. Besides, With 60% of gold demand coming from rural India, the budget’s focus on boosting rural and farm incomes could benefit companies such as Titan Co Ltd., Tribhovandas Bhimji Zaveri Ltd., PC Jeweller Ltd.

#Those who are holding the shares of 3i Infotech Ltd (Rs.5.65) should wait for the scrip to give a closing above Rs.6.30 to take fresh positions. This is a wonderful company and long term investors would definitely get benefited.

#Those who are holding the shares of Housing Development & Infrastructure Ltd (HDIL, CMP: Rs.49.90) should add the scrip on every decline with a SL at Rs.47. It is good that it is out of the F&O basket, due to obvious reasons. Now we can look for targets of Rs.91-97-121 in the coming days. Remain invested and average on every dip.

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

Tit - bits

The scrip of Titan Company Ltd is up 1.29% to 1194.50. Soon this rally is expected to spread to

Photo: Financial Express

other counters in the same space. 

It is pertinent to mention here that Indian jewellery demand during Q2FY20 was at 101.6 tonnes, almost a third lower, YoY due to weaker consumer sentiments. There was a decline of nearly 51% in Indian bullion imports on QoQ basis -- a clear case of a cut in Gold import duty to around 6 - 8% from the current 12.50%.

While, the commerce minister, Piyush Goel has been requesting the FMO since some time, to cut the gold import duty to 6%, the jewelry association wants it be 5%.

If Nirmala Sitaraman, considers their cases, then we will see a huge rally in the Jewellery stocks.

My favourites: Titan Co Ltd (Rs.1179.25), TBZ Ltd (Rs. 36.50) and PC Jewelers Ltd (Rs.22.35).

P C Jewelers Ltd (Rs.22.35):-
At the end of FY19, 4,000 designs (15,000+ products) from 60 showrooms across 15 states, were made available online, under same day shipping facility. This has helped the company to reach out to a wider audience.
Company is engaged in the business of manufacturing, sale and trading of gold jewellery, diamond studded jewellery and silver items and operates in different geographical areas i.e. domestic sales and export sales.
As part of its consolidation / rationalisation process and to gain operational efficiency, the Company has closed / shifted / merged some of its existing showrooms during the year.
As on March 31, 2019, the Company has 86 showrooms including 14 franchisee showrooms. The Company is also having in-house designer’s team and manufacturing units.
During the fiscal year FY19, the Company rolled out India’s first Augmented Reality Jewellery buying experience on a dynamic and real time basis as well as Online-Offline Integration across its showrooms in Delhi-NCR.
The Company has also launched many new jewellery designs and collections like I heart, Expresso, Swarna Dharohar, Inayat, Mirosa etc. Recently, the Company for the first time in India launched silver and gold medallions to commemorate ICC Cricket World Cup 2019.

#The scrip of Bharat Heavy Electricals Ltd is consolidating around the current ranges of Rs.43 - 45, before giving the ultimate break out for targets of Around Rs.91/111.
In October last year, State-owned Bharat Heavy Electricals Ltd (BHEL) zoomed to Rs.61.30 apiece on after global brokerage firm CLSA upgraded the stock to 'Buy' from 'Sell' owing to the benefits that the company could reap due to government's stake sale.

#The Budget and IT limits:-
The Broking firm, Sharekhan believes the NDA government government might increase the basic income-tax exemption limit to Rs.5 lakh from Rs.2.5 lakh for all, thus eliminating the 5% tax slab for income of Rs.2.5 lakh to 5 lakh.
"It may replace the 20% tax rate for the Rs.5-10 lakh slab with 10%; add a 20% slab for incomes of Rs.10-20 lakh and 30% slab for income above Rs.20 lakh per annum," it said.
A likely reduction in personal income-tax rates should improve sentiments of auto and white goods makers; besides small-ticket discretionary consumption plays such as Jewelry and Apparel (Textile) players.

#A report in ET on 28 January,  2020 says,  an investor or a trader can get benefited if he/she use dips in the pre budget days to accumulate good stocks.  According to ET:

Those who can brave the current market depression due to the coronavirus outbreak might be in for big rewards post Budget.
In last 10 Union Budgets, (excluding the interim ones), Sensex and Nifty have fallen six times in the pre-Budget week and remained flat in one. Only thrice did they offer positive returns.

Except in  of 2017 and 2012, when the indices gained 2-3%, the benchmark indices have traditionally performed poorly in the pre-Budget week.

#Positive tinkering with the dividend distribution tax should benefit good dividend paying companies such as BHEL (Rs.42.65), NFL (Rs. 28.75), etc.
Abolishing Dividend Distribution Tax (DDT) which is presently levied on the companies declaring dividends or taxing dividends in the hands of shareholders is one of the things people are expecting from Budget 2020. Any such positive move will benefit the foreign investors/companies who can claim a credit of the taxes paid on dividend in India in their respective countries.(as per the relevant treaty provisions).
It will not be an exaggeration to mention here that the domestic   equitiy markets have witnessed a complete exemption on long-term capital gains (LTCG) and its replacement with the security transaction tax (STT) to the return of the LTCG alongside STT.  After that came the worse, higher dividend distribution tax (DDT) as well as the income-tax surcharge. The market hopes the that the current Finance Minister would show some courage to rationalise this structure, ushering in a rally in the bourses.
On the economic front, the NDA government has an uphill task to take care of fiscal deficit, dipping GDP and reduced consumption levels and provide a much-needed boost to the economy focused on growth, increasing job opportunities and consumer spending.

Market Pulse

Key benchmark indices hovered with small losses in morning trade after a volatile start. At 10:18 IST, the barometer index, the S&P BSE Sensex, fell 30.97 points or 0.1% at 32,565.57. The Nifty 50 index dropped 23.85 points or 0.24% at 9,974.20. Market sentiment remained subdued amid fears of global trade war.

The S&P BSE Mid-Cap index fell 0.22%. The S&P BSE Small-Cap index dropped 0.27%. Both these indices underperformed the Sensex.

Overseas, Asian stocks edged lower amid fears that rising tensions between the United States and China could lead to a full-blown trade war. US stocks fell sharply on Friday, 23 March 2018 as investors assessed the possibility of a trade war brewing between the US and China.

Meanwhile, reports suggested that China and the US have quietly started negotiating to improve US access to Chinese markets, after a week filled with harsh words from both sides over Washington's threat to use tariffs to address trade imbalances.

Closer home, the breadth, indicating the overall health of the market, turned negative from positive. On the BSE, 1,298 shares declined and 809 shares advanced. A total of 118 shares were unchanged.

Telecom stocks were mixed. Reliance Communications (up 0.88%) and Idea Cellular (up 0.32%) advanced. Bharti Airtel (down 0.45%) and Mahanagar Telephone Nigam (down 0.26%) edged lower.

Cement stocks also witnessed a mixed trend. Shree Cement (up 0.91%), Ambuja Cements (up 0.51%) and ACC (up 0.17%) edged higher. Grasim Industries (down 2.13%) and UltraTech Cement (down 0.54%) edged lower.

Dr Reddy's Laboratories (DRL) was down 0.7%. The company announced that it has launched Palonosetron Hydrochloride Injection, 0.25 mg (base)/5 ml, a therapeutic equivalent generic version of Aloxi Injection approved by the US Food and Drug Administration (USFDA). The announcement was made during market hours today, 26 March 2018.

NHPC was down 0.19%. The company announced that it has fully commissioned a 50 megawatts solar power project in Theni/Dindigul District of Tamil Nadu on 23 March 2018. The announcement was made after market hours on Friday, 23 March 2018.

Lumax Auto Technologies gained 1.26% after the company's board of directors considered and approved a 5-for-1 stock-split of equity shares. The announcement was made after market hours on Friday, 23 March 2018.

Today's Calls:
#The risk taking traders can buy the shares of Reliance Infrastructure Ltd at around Rs.422, T: Rs.441, SL: Rs.415. The company has an order book of more than Rs.5000 crore and its share has a good value. It is strange why the stock is trading at such dismal levels. Also, after the completion of the deal of the sell of its power division, the company is likely to become debt free.

#Buy the shares of MCX Ltd at around Rs.681, T: Rs.797, SL: Rs.667. The other targets are Rs.939 and Rs.1129.

#Buy the shares of P C Jewelers Ltd at around Rs.321-322, T: Rs.341, SL: Rs.315. The ongoing marriage season is likely to boost up the share price of the P C Jewellers Ltd, apart from lowering of competition due to the demise of one of the most reputed brands like Gitanjali Gems Ltd. 

~~With inputs from Capital Market - Live News....

WINNING STROKES: THINK DIFFERENT

P C Jewelers Ltd today touched Rs.94.90, intra-day before cooling down at Rs.93.95.  I had already given a target of Rs.102-103 for the scrip in the short term. In the same way, Shree Ganesh Jewelry House (I) Ltd today touched Rs.28, before cooling down at Rs.26.95. Gitanjali Gems Ltd touched Rs.65.75 before closing at Rs.64.25. All these Jewelry companies came out with satisfactory set of numbers for the Q3FY14. You just need to buy and keep holding, till they are near their targets--please don't trade.  March, 2014 is very near and the government of India,  is likely to relax the import restrictions on Gold. However, more than all those tall talks of reducing fiscal deficits through curtailing gold imports, it seems there are other reasons for the keeping the restriction in Gold Import intact. DNA India, on 16 February, 2014, writes: "As a result the biggest beneficiaries will now be politicians and other powerful people who want to convert their ill-gotten gains held in dollars into rupees just before elections. In fact, as this column has argued, what matters is not the CAD, but the manner in which fiscal policies are managed". Therefore, these Gold Jewelry companies are expected to do well in the coming days. Shree Ganesh Jewelery House (I) Ltd is also into Gold Refining, Mining and Gold Loan--buy as much as possible and keep holding. 

Entegra Ltd (Rs.3.71), has again started to move up. You need to invest 50% of  your present capital in the scrip and keep holding. This scrip would double your investments in just 4-5 months time frame. 

Yesterday, a buy call was initiated on Glodyne Technoserve Ltd at Rs.6.70, saying it would not break the support of Rs.6.70-6.50, because of some news which I received from my close sources. Today the scrip hit the Upper Circuits in the BSE. I am expecting a short term target of Rs.14-15 for the scrip.  

BHEL was given a buy yesterday, with a target price of Rs.154. Yesterday, it touched Rs.151 and today it touched Rs.152.25. I hope those who were long on Nifty_Futures certainly made money during the last couple of days. 

Join my recommended brokerage house/s or my Paid Service to be ahead of others. If you join my recommended brokreage house and trade through them you get Paid Service Free of Charge. Also, you can look for target oriented trades. Cover your losses through some correct trades. For more you can visit: sumanm2007s@gmail.com. Also, you can join my Free Facebook Groups and also join me on Twitter (ID: suman2009s). The Paid Blog is more or less regularly updated. 

Tit - bits

#Today I recommend Wockhardt Ltd (Rs. 250.05) for the short term on the media news that Cipla Ltd is in advanced talks with the company for a stake sale; which the latter wants to lap up.  

Wockhardt Ltd had a total debt of Rs.3,367 crore as on March 31, 2019 and its current market capitalisation stands at around Rs.2,767.82 crore. It has a diversified product portfolio with a presence in therapeutic segments such as cardiology, dermatology, diabetes, respiratory, etc. The catch Point is: it export portfolio is around 70%. I'm expecting the scrip to double from the current price within January,  2020.

#The stock price of P C Jewellers Ltd (Rs.27.50) is testing its immediate supports. With no definite news of signing of the US  - China Trade Deal,  the gold prices are likely to remain buoyant. 

Also,  the RBI has kept the Repo Rate unchanged, on inflation fear.  This is positive for the Gold sector. 

Source: BSE

Moreover, if the FM, Nirmala Sitaraman increases the IT limit for the Indians in the upcoming budget, then the 1st sector which will get a positive effect is the Retail.  The company has a number of retail stores all over India. 

Apart from this the current marriage season is likely to keep the bullion market buoyant. 

Gold prices in India are down about ₹2,000 per 10 gram from their September highs. This may lift retail demand of gold, say many analysts.

"With doubts emerging about a U.S.-China trade talk, we expect investor demand for safe-haven assets, such as gold-backed ETFs, to increase," an ANZ analysts said in a note.

In the International markets Gold gained about 15% so far this year, which could be its biggest annual gain since 2010, mainly bolstered by the impact of the prolonged U.S.-China trade war on the global economy.

Financials: The last two quarter results of P C Jewelers Ltd are not that bad as is made out to be. For H1FY20, the Cash EPS is Rs.2.69.

If we interpolate this figure for the whole year the cash EPS for FY20 comes around Rs.5.38. This easily gives a P/E oHYf around 5, which is much less than the industry P/E of around Rs.30. 

Now, if we apply this simple method of rough valuation to the share price of P C Jeweler Ltd, then the yearly target of the stock of P C Jeweller Ltd becomes Rs.167/170, which incidentally is near its 52 - week high price. 

After giving suitable discounts, we can get the approximate March - April price target of around Rs.117/121. 

Hence,  I would suggest the medium to long term investors to buy the scrip of P C Jeweller Ltd at the CMP of around Rs.27.50 and keep holding. 

Note: If you have a portfolio size of about Rs.3/5 lakhs and is finding difficulty in making money on consistent basis,  then you can go for my profit sharing scheme,  of 70:30 ratio between you and me. There is no compulsion nor any lock in period,   you can walk out of this process at any time,  if you are not happy. 

P C Jewellers Ltd: Buy

The investors with short to medium term

perspective can buy the shares of P C Jewelers Ltd near the CMP of Rs.30.30, for short term targets of Rs.41/66. SL: Rs.27.
The Book Value of the shares of the company is Rs.99.67 and the Market Cap is only Rs. 1,196.86 Crore

4 (Four) Principal Triggers:

• The US has imposed a 10% duty on Chinese gems and jewellery items from September 1, 2019, which will indirectly help the Indian diamond sector.  The items that will come under this tariff net are diamonds, cultured and natural pearls, rubies, emeralds, and sapphires, synthetic precious stones, including diamonds, silver jewellery, gold necklaces and neck chains and religious jewellery.
• The NDA government has increased duty drawback rates for gold and silver jewellery, a move that would make Indian exports from these sectors more competitive in the global market. This notification shall come into effect from November, 2019. The government's decision to raise the rates would help in increasing the competitiveness of Indian gold and silver jewellery, according to market analysts. Under duty drawback, exporters get a refund of all duty and taxes which were paid for the inputs against the exported products. 
• Some months back PC Jeweller Ltd (PCJL) said that its board has given approval for the demerger of the company's export division and amalgamation of the same with its wholly-owned subsidiary PCJ Gems & Jewellery Ltd. The scheme will enable creation of an independent listed company with replica shareholding structure with the 'export division' business. Domestic division with domestic business (remaining business) would continue to be carried on in the demerged company, the filing added. Most denergers add value to the shareholders wealth.
• Fears of a global economic slowdown, continuing trade and tariff war between the United States and China, and geo-political risks could help the price of gold to sustain at higher levels.

Tit - bits

#National Fertiliser Ltd recommended at

Rs.27.10 today made a high of Rs.31.40 today and is now trading at Rs.30.75. Traders are suggested to hold with a SL at Rs.29.70.

#The stock of Radio City (Music Broadcast)  today made a high of Rs.29.90 and is now seen at Rs.28.80. The non risk taking investors are suggested to book some Profits.

#Buy the scrip of Bharat Heavy Electricals Ltd (BHEL) at around  Rs.44.50, T: Rs.48/52, SL: Rs.43.50. At the end of October, 2019, there were media reports that the rokerage firm CLSA upgraded the stock to 'Buy' from 'Sell' owing to the benefits that the company could reap due to government's stake sale.

BHEL is one of India’s largest engineering and manufacturing enterprises in the energy and infrastructure sectors and a leading power equipment manufacturer globally. BHEL serves the core sectors of the economy and provides a comprehensive portfolio of products, systems and services to customers in power, transmission, transportation, renewables, water, defence & aerospace, oil & gas, and industry.

#Exit the shares of Reliance Capital Ltd (9.50) and Reliance Infrastructure Ltd (Rs.21.20). Both of them could go for further correction after last week's NPA news.

#Buy the shares of P C Jewelers Ltd at around Rs.23.20/23.30, for short term targets of Rs. 31/32.
India is considering signing a bilateral agreement with Russia to reduce import duties on processed diamonds and jewelry, according to the chairman of the country’s Gem & Jewelry Export Promotion Council (GJEPC), Sanjay Shah. India imports rough diamonds from Russia worth around $3.5 billion.  If the duties are reduced or zeroed, trade between India and Russia will flourish. The two countries have been developing cooperation in the diamond industry in recent years, with Russia’s Alrosa and India’s GJEPC considering preferential tax treatment for diamond trading.
India is the world’s largest diamond cutting and polishing center.

Winning Strokes

Buy P C Jewelers Ltd at around Rs.131-132; SL: Rs.127, T: Rs.151. The stock should gain, as the inflation fear is likely to make assets costly. RBI can also go for another rate hike by October, to stem the slide in INR Vs USD.

Monnet Ispat which was recommended in this blog some time back today hit the buyer freeze at Rs.11.35 in the BSE.

If you are looking for a micro cap counter then you can go for Amar Singh & Jaya Prada Company Energy Development Company Ltd at around Rs.15.70-16, for short term targets of Rs.21-22. Good monsoon rain is positive  for the company.
The Premium Members were recommended this stock today, along with the scrip of P C Jewellers Ltd.

I am having problem writing in this blog, from my mobile may be due to technical failure. My RJio Wifi has gone for a toss..so till I buy a new one, please bear with me.

WINNING STROKES: THINK DIFFERENT

As expected markets came down to 6001.10, after 6070 was broken on the downside. Earlier, the advance of the markets looked like a   pull back and so, I was a bit apprehensive. The movements of the markets could at least be predicted this time, more or less. I hope those who had taken Nifty_6000_puts on breaking of 6070 might have made a good amount of money. Anyway. on the downside 5970 will again act as a strong support, where you should pick up Nifty_Futures (I mean corresponding to the spot levels of 5970) for a target of 6100 again on Nifty_Spot. The FIIs  have turned buyers today of Indian Equities to the tune of Rs.399.4 Cr, though as usual DIIs turned net sellers. Keep away from the Bank and NBFC Stocks, as would continue to under-perform for some more time. Today Manappuram Finance Ltd (Rs.21.90) crashed 10.25 on the bourses. At one time it kissed Rs.21.60 on the downside, intra-day. 

Today Jewelry stock did well in the bourses. My recommended P C Jewelers Ltd crossed its 2nd target of Rs.88, and touched Rs.88.60 intra-day. Other two of my recommended counters Shree Ganesh Jewelry House (I) Ltd (Rs.26.35) touched Rs.27 while Gitanjali Gems Ltd (Rs.63.60) touched Rs.65, intra-day. Meanwhile, Shree Ganesh Jewellery House (I) Ltd informed BSE that in terms of Articles of Association of Company, Export-Import Bank of India (EXIM Bank) has nominated Mr. Lokesh Kumar, as their nominee on the Board of Directors of the Company w.e.f. January 29, 2014. The Board has noted the same in their meeting held February 13, 2014. Both the companies are coming up with results tomorrow. The optimism has increased among the shareholders, following, good Q3FY14 results coming from P C Jeweler Ltd. 

Glodyne Technoserve Ltd came out with SHOCKING Q3FY14 numbers and I feel the regulators should do something to protect the shareholders from these kinds of PREDATORY promoters. The company's net sales for the Q3FY14 quarter nosedived to Rs.10.50 Cr, as against Rs.272.08 Cr in the same period previous year. Will anyone believe? This happened inspite of the CMD of the company Annand Sarnaaik, beat the drums in one of his interactions with ET Now that million of dollars is likely to flow from the acquisition of DecisionOne, a US-based IT firm promoted by a clutch of private equity investors, for around $104 million, (Rs.649.06 Cr, considering 1 $ ~Rs.62.41) in the next five years. Where are those so-called funds going? How is that after the lenders starting invoking / selling the promoters' holding, the quarterly results started to become worse and worse? What is the relation between the two? The promoters have pledged the shares in their own capacity, so does it mean that the profits from their US subsidiary should go to the personal accounts of the promoters? Then who told them to buy DecisonOne? The  net loss in Q3FY14 came as Rs.95.37 Cr as against Rs.29.54 Cr in the same quarter previous year. Now what is interesting is that, Annand Sarnaaik also talked of margin expansion in that video (presented below), but in Q3FY14, the OPM stood at (-) 585.28% while NPM came as (-) 908.06%.  What happened to his tall rhetoric?  The government authorities, should now file a CRIMINAL case against the CMD of the company at least U/S 415 and 420 of the Indian Penal Code (IPC), for misleading the shareholders, so that he steps down and a new management takes over. Or else I feel the pains of the shareholders would not come down so easily, as the promoters could be siphoning off the funds from the company, to buy the shares which were sold or invoked by the lenders in "BENAMI" accounts. The promoters are dishonest and cannot be believed. If the regulators still do not take strict action against the promoters, then I feel there is no use of having SEBI or such organizations at all in India. The small investors are at the receiving end, some having bought the shares from levels of around Rs.100 plus, while the company continues to play games. Unfortunate!! 

Entegra Ltd today closed at Rs.3.66. The investors should accumulate the scrip on all declines. The government of India in the last bugdet had introduced some favourable policies for the renewable energy industry. A large domestic manufacturing base has been established in the country for renewable energy systems and products. Companies investing in these technologies are eligible for fiscal incentives, tax holidays and depreciation allowance apart from the remunerative returns for the power fed into the grid. Further, the government is encouraging foreign investors to set up renewable power projects with 100 per cent foreign direct investment. Over the next few years, decentralised distributed renewable energy based initiatives of communities is likely to make a profound impact in some areas. Furthermore, with well developed industrial, financing and business infrastructure, India is perceived as an excellent country for developing Clean Development Mechanism (CDM) projects. Currently, with 789 projects out of 938 projects, renewable energy projects constitutes largest share in the registered CDM projects. In order to reduce transaction cost and develop a framework for larger CDM portfolio, the Ministry developed a framework for renewables under CDM Programme of Activities. In the ensuring Union Budget (Vote-on- Accounts) the government is expected to continue with its efforts to give adequate concecssions to this sector. . 

Business Overview (Entegra Ltd): 

The Company is a pioneer in Renewable Energy in India with an integrated approach towards Hydro and solar (thermal & photovoltaic) energy and customised renewable energy solutions.

a) Hydel Projects: The 400 MW Maheshwar Hydro Power Project:

The Company’s prestigious clean and green 400 MW hydro-electric Project, the Maheshwar Project is slated to commence commercial operations shortly. With the distribution of awards and minor pending R&R work in few villages, the three Turbines can commence Revenue generation by Q4FY13. The Project has a 35 year power purchase agreement (PPA) with the Government of Madhya Pradesh wherein, the entire power generated from the project, which would be approximately 1226 million units would be sold to the Madhya Pradesh Electricity Board. The project is being implemented through its subsidiary - Shree Maheshwar Hydel Power Corporation Ltd. (SMHPCL). The payment from MPEB is backed by Letter of Credit from State Bank of India, Escrow Account and Guarantee from Madhya Pradesh State Government and the project is to be commissioned in 2013-2014 in a phased manner.

b) Solar Projects / Wind Projects:

The year 2012-2013 has seen the successful implementation and completion of some prestigious Wind and Solar Projects

which include the following:

1. A wind-solar hybrid system consisting of 1.8 kWp x 3 wind turbines and 1.2kWp x 3 photo-voltaic systems totalling 9 kWp has been commissioned at the President’s Estate, New Delhi.

2. The Supply and Installation of Solar Water Heaters at Raj Bhawan, Dehradun and Nainital with a total capacity of

3900 LPD.

c) Services:

The Company has also played an instrumental role in the supply and installation of Solar Water Heaters at various locations across NCR for private consumption. Given the accelerated focus on the renewable energy space and its growing importance as being an intrinsic part of the power requirements of the country, the Company continues to focus on exploring various opportunities providing innovative and modern renewable energy solutions and extending its various services in the Solar-Wind arena for Government, Commercial and Private operations.

Future Plans:

• The Company proposes to install a 50 MW Photovoltaic plant in Rajasthan in order to increase the output of renewable energy and capitalise on the potential of solar power generation in the state.

•The Company is in the process of tapping solar water heating systems and roof-top Photovoltaic projects in the MMR and NCR regions in Delhi among both, residential and commercial establishments.

India is the second most highly targeted country on a global basis, after the United States, with outside investors targeting local partners in order to be able to enter the market. The renewable energy sector has massive potential and efforts to tap the country’s vast resources are now gaining momentum. Thanks to the high demand in power that is being backed by a plethora of attractive government incentives, renewable purchase obligations, tax holidays and grid based incentives, the interest in the renewable energy business in the country has reached new heights. Despite 100% foreign direct investment allowed in power projects, The National Action Plan on Climate Change (NAPCC) has set an ambitious goal of a one per cent annual increase in renewable energy generation. The cost of power generation is going up for projects based on fossil fuels and that of renewable energy sources is coming down. The Jawaharlal Nehru National Solar Mission (JNNSM) is a transformational initiative for solar energy development in

India. The mission targets to propel India as a solar hub with 20 GW of grid connected solar power capacity by 2022.

Furthermore, the Government of India has come up with a Rooftop PV and Small Solar Generation Programme. There have

also been new tariff-based incentives for solar photovoltaic-based power generation, announced recently by the new and

renewable energy ministry.

Also, a solar manufacturing industry has developed for the manufacturing of solar cells which are made into modules (capacity

of 2,0000 MW for modules and 1,000 MW for cells). A large EPC industry has also emerged wherein a number of companies are now building solar power projects for others. There is also an impetus to explore the development of solar farms, particularly in the southern states, as their industrial units are short of power. There is a huge growth potential in these markets as they are in their nascent stage of development.

A movement called “social solar” is also gaining momentum at grassroots level in an effort to empower rural India with the introduction of smaller, inexpensive solar projects that can power villages. Solar power water pumps to aid agricultural production and solar powered cookers for community cooking are also been introduced. The Government has also come up with generation-based incentives for wind energy projects. The Government had introduced a generation-based incentive (GBI) which provides monetary benefit on every unit generated to companies that consider generation of electricity as their business. The wind power will get Rs 0.50 a unit of electricity as incentive up to a ceiling of Rs.1 crore a MW. I am expecting this scrip to cover all your future losses. 

Jewelers in India Jump Online for $22 Billion E-Commerce Pie

[Editor: In this connection, I suggest you buy in bulk the shares of Gitanjali Gems Ltd at around Rs.47 and keep holding. 

Also, I hope you have already taken position in the hidden gem, Jaiprakash Power Ventures Ltd (Rs.11.10) after lot of positive developments in the company. Now if the things go as per schedule, then the scrip could even touch the all time high of Rs.70 Plus. However, for the moment the target is Rs.22, which I feel is easily achievable. Meanwhile, yesterday's call Elecon Engineering Co Ltd (Rs.68.50) at around Rs.59.30 is up more than 15 % today. Those Premium (Paid) Members, who bought me, say Cheers!!]
March 17, 2015: In India, where buying gold traditionally means a trip to the trusted family jeweler, a growing e-commerce market forecast at $22 billion in three years is starting to challenge all conventional wisdom.

Gitanjali Gems Ltd., India’s biggest diamond and gold jewelry retailer, expects online sales to account for much as 20 percent of its sales in two to three years from about 1 percent now. The growth potential convinced Ratan Tata, former chairman of the Tata Group, to invest in Bangalore-based online jewelry store BlueStone last year.

Jewelers are tying up with Amazon.com Inc., Flipkart Online Services Pvt. and Ebay Inc. after the government last year eased import curbs on gold bars and coins. The total online retail market in India will be about $6 billion this year, driven by free delivery and heavy discounting, Gartner Inc. estimates. That may grow to $22 billion by 2018, CLSA Asia Pacific Markets predicts.

“Indian consumers prefer to touch and feel the jewelry before buying, but the change in consumer behavior will happen quite fast,” Gitanjali’s Chairman Mehul Choksi said in a phone interview. ‘We have tied up with all the major online platforms and we are always looking for more tie-ups.’’

Gitanjali, which sells its diamond and gold jewelry through more than 4,000 points of sales spread across India, the U.S., the Middle East and Europe, uses a battery of Bollywood actors including Shah Rukh Khan and Katrina Kaif as brand ambassadors.

Offering Convenience

The Mumbai-based company, whose sales declined 24 percent to 124.36 billion rupees ($2 billion) in the year through March 2014 because of import restrictions, now retails through platforms including Amazon.com, Flipkart.com, EBay, and Jewelsouk, Choksi said.

Established retailers are looking at online stores already selling jewelry, besides promoting their own, according to Gaurav Singh Kushwaha, founder and chief executive officer of BlueStone, which sells everything from solitaires, rings, earrings, pendants, bangles and bracelets.

“Online retailing offers convenience from the comforts of an individual’s home and moreover allows other incentives like giving them time to decide, not make it obligatory for customers to purchase at their very first visit,” Kushwaha said. “Offline jewelers realize the potential and the need for being present online.”

The online jewelry market may be worth as much as $2.5 billion in the next five to 10 years, BlueStone estimates. Currently it accounts for less than 0.1 percent of the $55 billion jewelry market, it says.

Topping China

Indians bought 662 metric tons of gold jewelry valued at $26.9 billion in 2014, the most since 1995, the World Gold Council said last month. Total demand including for gold bars and coins was 842.7 tons, helping India surpass China as the world’s largest consumer last year, the council said.

Bullion demand is seen expanding this year to between 900 tons to 1,000 tons, the council says. Bullion is bought in India during festivals and marriages as part of the bridal trousseau or gifted in the form of jewelry by relatives.

Shares of some Indian jewelers have advanced after the government relaxed most restrictions on imports. Titan Co., the biggest by market value, has rallied 60 percent in the past year, compared with a 32 percent gain in the benchmark S&P BSE Sensex. PC Jeweller Ltd. more than tripled in the same period, while Gitanjali declined 22 percent.

The online market allows companies to offer customers a wider choice of designs without actually keeping physical stocks, said Rajeev Sheth, chairman of Tara Jewels Ltd., which began selling through Amazon starting December.

Global Trends

“The major driver for getting jewelry online is changing consumer behavior, especially of young Indian women, who are exposed to global trends and are increasingly shopping online,” Sheth said.

Earlier this month, New Delhi-based PC Jeweller tied up with U.S.-based online jeweler Blue Nile to evaluate the Indian market for potential sales in the long term. The jeweler plans to develop its own website to replicate the comfort and convenience associated with shopping at its luxury showrooms, it said March 4.

Titan may buy a stake in Chennai-based online jewelry retailer Caratlane, which counts Tiger Global Management LLC as its investor, the Economic Times newspaper reported last month. The jeweler said the report was “speculative in nature.”

Titan, founded by the Tata Group, currently sells its jewelry on its website besides its nationwide network of retail outlets.

Kushwaha, who started BlueStone in 2011, says building trust in an industry dominated by traditional retailers has been the biggest challenge so far.

Along with Caratlane, BlueStone offers customers jewelry of their choice delivered at home for trial at no cost.

“We understand the concerns of a first time online jewelry shopper and our ‘Home Try-on’ service is designed to help address them,” he said.

Courtesy: Bloomberg

 Market Mantra

In early afternoon trade, the benchmark indices extended their advances and set a new record high -- the Nifty 50 index reached an all-time high of 18,982.05 while the Sensex reached an all-time high of 63,948.84. Photo: Just Dial.

Meanwhile, this trend was seen in broader market too with the S&P BSE Mid-Cap index rinsing 0.39% while the S&P BSE Small-Cap index gaining 0.30%. The market breadth was strong. On the BSE, 1,866 shares rose while1,471 shares fell. A total of 157 shares remained unchanged. The benchmark indices are now expected to trade flat while the action is likely to be seen in the small, mid and micro cap spaces. 

#Buy the shares of NDTV Ltd (Rs.229.70) near the CMP for short term targets of Rs.251/Rs.306. SL: Rs.209. Adani group holds a whopping 64.71% stake in NDTV Ltd. 

It is well known that the Adani has established itself in several Industry verticals, including airports, renewable energy, mining, and data centres, to name a few. Adani has recently widened its horizons to include the media and entertainment sectors, and has chosen the news institution New Delhi Television Limited (NDTV Ltd) probably to help it realise its objective.

Without a question, NDTV has a large digital and offline customer base. As a result, NDTV's massive consumer base, combined with the Adani Group's massive resources, has the potential to revolutionise the media and entertainment industries. Accumulate!!

#Buy the shares of PC Jewelers Ltd (Rs.26.15) near the CMP for short term targets of Rs.31/32.

#The share of RTN Power Ltd (Rs.4.85) which made a new 52 - week high yesterday came in for profit booking. The stock is likely to stabilize near Rs.4/4.30, where Accumulation can be initiated. I have repeatedly asked you to accumulate the scrip when it fell to near Rs.3, citing the reason as improved Fundamentals and the promoters looking to refinance the high cost debt. Congratulations to those who bought the share at those prices and made hefty gains.

#Accumulate the shares of D B Realty Ltd (Rs.75) near the CMP. According to earlier news reports, it is on the radar of Adani Group. The stock should give decent returns from here.

#Keep Accumulating the shares of Adani Group companies, especially Adani Enterprises Ltd (Rs.2373.10) and Adani Transmission Ltd (Rs.805.50). Both will give you good returns over a period.

#Hold the shares of Piramal Pharma Ltd (Rs.90.65) for targets above Rs.100. The company is expected to show good performance in Q1FY24. 

#Accumulate the shares of FCS Ltd (Rs.2.10) for targets over Rs.5/6. This is Re.1 Face Value scrip.

The website of FCS Software Ltd says: One of the simplest methods to begin using AI into your organisation is to deploy AI-powered chatbots to handle all customer-facing tasks such as orders, servicing, helpdesk, and so on. These chatbots will be able to deliver real-time information to clients while also interpreting their queries in any language in a very human-like manner.

Tit - bits

Yesterday, (Wednesday) the Indian markets were

Photo: Moneycontrol.com

totally under the control of the bulls.  The BSE Sensex closed at 41,565.90 up 349.76 points (+0.85%), while the Nifty ended at 12,201.20 up 93.30 points (+0.77%). 

However, the market breadth was in favour of bears, indicating caution ahead of IIP and CPI data announced later in the day (Wednesday).

The retail inflation in January rose to 7.59% against 7.35% in December, while industrial output contracted 0.30% in December, against a growth of 1.80% in November. This means, the unrealistic run which is continuing in some of the FMCG counters at ridiculous P/Es, is likely to end soon. And money, from these over valued FMCG stocks would soon enter,  the other beaten down counters from sundry sectors. 

#Now coming back to the budget once again, we saw fiscal stimulus to our economy in the form of  allocating more funds towards rural India, reducing taxes, and abolishing Dividend Distribution Tax (DDT) to boost growth.

Against the backdrop of stagnating Agri income and rural demand shrinkage, the government has provided Rs.1.3 lakh crore for agriculture and farmers’ welfare, which includes an allocation of Rs.615 bn to rural employment scheme (NREGS), of Rs.195 bn to rural roads (PMGSY) and Rs.275 bn towards rural housing (PMAY-G). 

Moreover, while the NDA government has elevated the Food subsidy budget for FY21 by 6%, the Fertilizer subsidy budget for FY21 has been reduced by 11%, which is likely to cause some working capital stress for fertiliser companies; as the NDA government never delivers the subsidy on time to the fertilizer companies, adding to the problems. Besides,  the price of urea has not been raised since more than a decade,  compounding the owes of the fertiliser manufacturers. 

Anyway,  the sectors which are likely to a get positive effect due to government's rural push are: tractors and other Agri equipments, agrochemicals, NBFCs and FMCG companies focussed more on the rural space, select consumer discretionary companies having a rural presence, home appliances, and consumer durables.

This year’s superb Rabi output coupled with good farm prices should help improve rural income and boost rural consumption; kicking up the overall GDP.  I'm positive on the markets in the short term. However,  having said that, I feel there are chances that, spiking up of inflation and a shrinking IIP could spoil the Bull party.

#Yesterday, the stock of HSIL (Rs.58.15), which was recommended in this blog, around a couple of days back at around Rs.53, made an intraday high of Rs.58.60. You can book some profits, and hold the rest with a SL at Rs.57.

#Yesterday,  I bought two shares for my portfolio investors. One of them is one of my old favorites, P C Jewelers Ltd, which touched Rs.21.45 intraday on Wednesday, before closing at Rs.20.95, up 17.04%. The name of the other share will also be disclosed soon in this blog.

#In another development, I have decided to manage those Demat accounts of investors/traders, which have a portfolio size of more than Rs.5 (five) lakhs. 
From, Saturday, this week I will discontinue the earlier Rs.3/5 Lakh profit sharing scheme; as I'm unable to look after too many of them, at the same time. However,  existing ones will be there.. It is regarding fresh offer from clients.
Also,  those investors who are ready to take a little risk in exchange of good future returns, should send me mails. Others, can either try on their own or look for bank FDs. Those are not willing to risk capital erosion of their portfolios in case of a mishap, should invest only in debt schemes -- equity is not for them. The profit sharing ratio is 70:30 in general casis,  between you and me. 

#Two BTST shares recommended to the Premium members were:

1. BTST - Buy Adani Enterprise Ltd at around  Rs.249.60, T: Rs.255 - 262, Rs. 244.70.
2. BTST - Buy IGL at Rs.521, T: Rs.528 - 537, SL: Rs.512.90.

#Today,  there is a report in ET,  that the beleaguered private sector bank, Yes Bank Ltd (Rs.35.20) which is engaged in fundraising exercise, said it has received non-binding expressions of interest (EOI) from investors including JC Flowers, Tilden Park Capital, OHA UK and Silver Point Capital.
So,  this could give rise to speculative buying in the scrip on Thursday, taking it near Rs.37. However,  if you know the art to swiftly enter and exit a countert, then only you can play; otherwise avoid. I caution you because we have seen such repeated announcements by now defunct, Reliance Communications Ltd (Re.0.70). 

#Yesterday, the capital goods giant BHEL broke the immediate support and made an intraday low of Rs.35.80 (52 - week low),  before closing at Rs.36.35, in the NSE; after it came out with a disappointing set of numbers for the December quarter. If you remember, I asked all to exit the scrip of Bharat Heavy Electricals Ltd,  when it hit the SL. 

 Market Mantra

In the afternoon trade, the domestic equity benchmark indices reached new intraday highs. The Nifty is currently trading at 19163, up roughly 190.90 points and is hovering around the 19,150 levels. European markets rose, while most Asian markets traded in the green. In this bull market most stocks are likely to rise up. Photo: Swaraja.com

The Nifty and the Sensex hit all-time highs in afternoon trade at 19,160.10 and 64,593.74, respectively. Meanwhile, the Nifty_Bank Index also registered its fresh record high at 44,758.45. 

In an intersting development according to RBI's latest Financial Stability Report, the asset quality of the MSME portfolio of all SCBs showed improvement during FY23 with the gross NPA ratio nosediving from 9.3% in March 2022 to 6.8% in March 2023. At this juncture you need to be patient, pick up good beaten down stocks during market dips and hold on to your positions with appropriate stop losses.

#Today most of the stocks in the Adani pack came under pressure around 3.20% of the equity of Adani Transmission Ltd (Rs.769) changed hands on a block trade in Friday morning at an average price of Rs.795 apiece, taking the total value of the transaction to Rs.3,103 crore, according to exchange data published by CNBC TV18 website.

In another Development, last month, Mahen Kumar Seeruttun, the minister for Financial Services and Good Governance in the Mauritian government, said a company from overseas needs to carry out its core income-generating activities in, or from, Mauritius, as required under the Income Tax Act. Rejecting the claims made by Hindenburg Research, Mauritian Parliamentarian, called the claims of the presence of Shell companies of the Adani Group in Mauritius, to be “false and baseless". The short-seller, Hindenburg in its report, alleged the presence of Adani Group's shell companies in Mauritius, UAE, and the Caribbean islands.

Post Hindenburg torpedoes, the Adani Transmission Ltd's shares are trading at over 80% discount from their 52-week high of Rs.4,236.75. This implies that the stock must surge 5x - times from the CMP to achieve this level. Today's deal was executed at ~Rs.795 which means the share should close above this price. You need to accumulate during market declines.

#The stock of PC Jewelers Ltd (Rs.26.35) today rose to Rs.26.70. The festival season has kicked off with Bakri Eid, and is likely to continue till Christmas, followed by marriage season. You need to buy the shares of Jewellery and Apparel companies and hold at least till Deepawali. 

#The shares of NDTV Ltd (Rs.227.60) today moved to Rs.333.95. It is now an Adani group company. Adni Group acquired Pronnoy and Radhika Roys' stake in NDTV Ltd at the price of Rs.342.65 per share.

#The shares of Nahar Spinning Mills Ltd (Rs.271.25) is hovering around the price band of Rs.267 - 292. However, the ensuring festival demand is likely to push the scrip above Rs.300. You need to buy and keep holding. It is one of the top textile companies in India.

WINNING STROKES: THINK DIFFERENT

Glodyne Technoserve Ltd hit another buyer at Rs.7.61 in the BSE as expected. The scrip as I mentioned earlier, should be moving towards Rs.14-15-17 in the coming days. The company is thinking of selling some of its assets to reduce the debts. It is still receiving money from the government contracts, however, the delays in the government policy decisions in relations to UID linkage to its social benefits projects such as NREGA which made its investments in the large size contracts idle and non return yielding for a longer period of time. The Company had already invested in the Capex and Opex for such projects and the returns from the projects were expected over a period of time. Annand Sarnaaik, the Chairman and Managing Director of Glodyne Technoserve Ltd, had already sent out an emotional appeal of sort to reach out to his well-wishers. He says, "Even though the times are extremely testing, I along with my co promoters and the team have been working relentlessly and with the same passion to make sure that the Company comes out of the adversities. Glodyne has been our life and we have built this Company out of all our personal investments and have always put the Company’s interest ahead of any personal interests. We have in fact put everything personal at stakes for the Company because we believe in the Company". Therefore, him and his team, work in such a way, that benefits trickle down to the kitty of the shareholders. What I want to see is solid results and not plane smooth talks which have been going on since the last one and half years.  

The Jewelry Stock continued their upmove today. My recommended P C Jewelers Ltd almost reached the 5th target, as it touched 101.90 (~Rs.102), intra-day before cooling down at Rs.99.70. Shree Ganesh Jewelry House (I) Ltd also moved up to Rs.28.80 before settling at Rs.28.25. The Jewelry stocks would continue to do well, as the government is bound to cut the import duty on Gold. Moreover, the demand for Gold has only increased during the last few months, so in any case, the jewelry companies, are bound to perform well. If you have still not entered the counter, please do buy some shares and keep  holding. Once it gets the nod on CDR package, it will start its expansion projects. 

Entegra Ltd today moved to Rs.3.89 and closed there, indicating further bullishness for the scrip. I had already strongly recommended to buy the scrip and keep holding. Going forward the Company has set up a strategy in place to aggressively market its Renewable Energy expertise for Wind, Solar and Hydro Projects on a pan India basis in FY 2013-2014. The Company will also be focusing on acquiring assignments for developing Energy parks and participating in projects focusing on Rural Electrification. The company also plans to expand its outreach of Solar and Hydro Power and increase its capacity generation in both arenas. During the current year 2013-2014, Company proposes to take forward 50 MW Photovoltaic plant in Rajasthan in order to increase the output of renewable energy and capitalise on the potential of solar power generation in the state and is in the process of tapping solar water heating systems and roof-top Photovoltaic projects in the MMR and NCR regions in Delhi among both, residential and commercial establishments.

WINNING STROKES: THINK DIFFERENT

Worli (Mumbai ) Projectof Entegra Ltd

Entegra Ltd (Rs.3.71) and Southern Ispat and Power Ltd (Rs.2.47) hit the Upper Circuits in the mid afternoon trade. Entegra Ltd should cover up your 100% losses you made in the markets. Just buy and keep holding. It is from the S Kumars' Group and has a high pedigree. Entegra Limited is a new age enterprise founded by Mr. Mukul Kasliwal in 1995. The controlling shareholder of Entegra Ltd is MW Corp (P) Ltd, which is promoted by the Kasliwal brothers, Mr. Mukul Kasliwal and Mr. Warij Kasliwal, members of the Kasliwal family (promoters of the erstwhile S.Kumars Group). MW Corp (P) Ltd is a holding company with well diversified business interests across verticals such as Textiles, Renewable Energy and Infrastructure Development. Major companies under MW Corp are:

• S.Kumars Ltd, one of India’s foremost Textile Companies.
• Entegra Ltd, a fully integrated Renewable Energy Company.
• SMHPCL, which is currently implementing an INR 39.39 billion ($ 875.25 million), run-of-the-river 400 MW Maheshwar Project - India’s first privately promoted Hydel Power Project.

Entegra has introduced two branded services with a compelling market-oriented strategy through its comprehensive green energy portfolio of services: 

• EnnerGreen Resources – this brand is focussed on setting up green power plants and generating clean energy, from sources such as sun and water. 
• EnnerGreen Solutions – this brand is engaged in providing integrated renewable energy solutions, products and services to create eco-friendly sustainable options for our customers at a domestic, commercial and industrial scale.

Also, why some of you bother so much about the volume of the scrip, unless  you are a large Mutual Fund? It seems some of you cannot think beyond your cloak! It is to be understood that less volume also indicates that shareholders are not willing to sell their shares at this price and is expected higher returns in the coming days. Also, sometimes high volume indicates the operators are getting out of the scrip. Therefore, why less volume always has to be taken in the negative context? However, Southern Ispat and Power Ltd is a speculative buy and therefore, caution should be exercised unless Rs.3 is crossed decisively. 

Most of the Jewellery Stocks today moved up following lot of speculation that the government of India would soon bring in some relaxations in the import duty on Gold. Shree Ganesh Jewelers Ltd (Rs.25.75) touched Rs.26.40, P C Jewler Ltd (Rs.77.70) touched Rs.78.80, while Gitanjali Gems Ltd (Rs.63.55) touched Rs.64.85, intra-day. These stocks would give you rock solid returns going forward, especially if NDA government comes to power, because Gujarat is the hub of the diamond Industry in India. Buy, anyone or all of them and keep holding for few weeks to get golden returns. 

As expected Allied Digital Services Ltd (Rs.13.71) hit the buyer freeze in the opening trade. The scrip should now hit some  more continuous buyer freezes on its way to Rs.21-22. The scrip has a book value of Rs.146.62 and market cap of only Rs.63.32 Cr. The company therefore cannot trade at this price---even the value of its assets will be more than Rs.50 Crores, forget the business of the company, which  you are getting free.  The company's business in cloud computing is slowly picking up and it recently obtained a big project. You should accumulate the scrip on all declines. However, if you are not able to get it tomorrow (if it becomes only buyer in the opening trade) then try another of those momentum counters, Glodyne Technoserve Ltd (Rs.7.85), which is also, slowly limping back to normalcy. The book value of the shares of Glodyne Tech Ltd is Rs.180.27, which around 23 times the current price of the shares of the company. Therefore, go for daily accumulation of the shares of the company on all declines.  The CMD of both the companies are astute businessmen, and hence it is only time that the scrips would again cross Rs.50 first and then Rs.100 within a few months.

The Nifty has got a strong support around 5970 mark, which is expected to be honoured in this week. However, the action would be shifted to small and mid cap counters. I will soon disclose the name of a stock to the Premium Group members which could give superb returns if the name of Mr.Chandra Babu Naidu, as the stand by Prime Ministerial Candidate gains more currency, in the coming days. Also, now the stock exchanges should remove this 5% circuit limit for most of the momentum counters in small and mid cap space, so that these scrips can move up fast and catch their large cap counter parts, in terms of valuations. 

Join my recommended brokerage house/s or my Paid Service to stay ahead of others. Also, allow your funds to be managed by experts so that you can cover up most of the losses, you incurrred during the last few years. If you are interested in joining my recommended Brokerage House /s or my Premium Service, then you  need to send me a mail at: suman2005s@rediffmail.com. If your portfolio is of value of more than Rs.1 lakhs, and you are trading through my Brokerage Terminal, then you would get Premium Service Free of Charge. This is the golden chance to make up for any loss you made in the markets.