Showing posts sorted by relevance for query premier explosives. Sort by date Show all posts
Showing posts sorted by relevance for query premier explosives. Sort by date Show all posts

Tuesday, March 27, 2007

At last my Prediction on Premier Explosives Ltd came to be true, ending all speculations:

I am happy to say that at last ending all speculations, Premier Explosives Ltd has come up with a wondeful news from its offices. Please read the following news:

Premier Explosives Ltd has informed BSE that the Board of Directors of the Company at its meeting held on March 26, 2007, has decided to sell assets of Mushroom Division to M/s. Inventaa Chemcials Ltd for a consideration of Rs 17.50 crores plus value of stocks, work -in-progress and finished goods at the close of business hours on April 01, 2007.
The stocks is expected to rise from tomorrow as earnings of Rs.17 Cr will directly flow into the Balance Sheet of the company. The company as mentioned in many of my earlier mails will now be able to concentrate on its core business activities i.e. Lucrative Defence Deals. According to a top source: "Lot of orders of the company are on the pipleline and one by one they will be announced in the days ahead". Also the company will form some more overseas Joint Ventures in this fiscal, which will give them firm footing in the overseas market. It is to be noted that the company is a major player in the explosives market. Premier Explosives Limited (PEL) a professionally managed and Indian owned company is one the three companies in India manufacturing the entire range of explosives and accessories for the civil requirement. Starting as a SSI unit promoted by two technocrats Mr.A.N.Gupta & Dr.S.V.Kannan in 1980, its current turnover is Rs. 800 million. The export earnings of the company are about Rs. 150 million per year. Premier explosives has a team of experienced and qualified sales engineers to provide full support on applications, safety and handling of explosives and accessories. This is backed by a team of expert mining/blasting engineers at the Technical Services group located at headquarters. PEL manufactures various Explosives and Accessories of very high quality, conforming to International standards. PEL is an ISO –9002 certified company. Recently its special products division has started functioning which will also add to its bottomlines. The company as mentioned earlier will get benefitted from the increased infrastructure activities of the government, also due to the government's increased allocation to the defence sector, due to government's incentives to the mining industry,etc. Earlier Karvy Stock Broking Ltd, recommended a `BUY` on Premier Explosives (CMP: Rs 43) with a target price of Rs 80; based on successful order execution of defence products (missile propellant and pyrogens) and good performance of the company`s mushroom division. The company had given an EPS guidance of Rs 7-8, for FY07. One can buy at CMP of Rs.42.6, with a Price Target of Rs.100 plus (with new developments taking place now) within the next 6 to 9 months time-frame.[For more on it please visit: www.eindiabrokers.com]
Yesterday's market News: Auto & Bank Scrips lead the collapse: The BSE Small-Cap Index closed at 6,425.74, down 31 points (0.48%), while the BSE Mid-Cap Index settled at 5,376.72, which is 24.6 points (0.46%) lower, than the previous day's closing. The market was weak throughout the day, due to selling especially in banking and auto shares. All sectoral indices on BSE settled with losses. But shares from sugar sector bucked the trend in an overall weak market. The BSE Sensex, which turned weak in the early-afternoon, kept declining as investors exited long positions ahead of the March 2007 deriviative contracts expiry, due on Thursday (29 March 2007). The 30-share BSE Sensex closed down 161.61 points (1.22%), at 13,124.32. It had opened higher, at 13,322.22, and surged to 13,330.41. But the benchmark index was unable to sustain the higher levels, and succumbed to pressure. Its low for the day was at 13,090.80. The S&P CNX Nifty lost 41.10 points (1.06%), at 3,819.95. Volatility is expected to remain high ahead of the expiry of March 2007 derivative contracts. With the market scheduled to remain closed tomorrow (27 March), only three trading sessions are left for expiry of the March 2007 contracts. The BSE's turnover in the cash segment was Rs 3198.68 crore, while the total market-wide turnover was Rs 44396.43 crore compared to Rs 45,804.21 crore on Friday. The market-breadth ended weak on BSE, with over two losers for every gainer, after a strong showing in opening trade. Against 1,746 shares that declined, 849 had advanced by the end. As many as 59 scrips also remained unchanged. The BSE Small-Cap Index closed at 6,425.74, down 31 points (0.48%), while the BSE Mid-Cap Index settled at 5,376.72, which is 24.6 points (0.46%) lower than the previous day's closing. Among the 30-Sensex pack, 25 declined while only 5 of them managed to gain. Auto shares slipped under pressure. The BSE Auto Index slid 1.78% to 4,950.03, hit by reports that fresh car loans were suffering due to prevailing high interest rates. The sentiment for auto shares was also affected by a surge in global crude oil price, which rose to the highest in three months on news of Iran's detention of 15 British sailors and the United Nation's decision to tighten sanctions against the country, heightening concern that Middle East supplies may be disrupted. Crude oil for May delivery climbed 51 cents, or 0.8%, to $62.79 a barrel, in after-hours electronic trading on the New York Mercantile Exchange, the highest since 26 December 2007. Tata Motors was the top-loser, down 4.31% to Rs 755.45, as 2.66 lakh shares changed hands in the counter, after slipping to a low of Rs 749.35. Maruti Udyog (MUL) lost 2.83% to Rs 816, while Hero Honda lost 1.71% to Rs 668. Bajaj Auto was down 0.34% to Rs 2525. Chairman Rahul Bajaj reportedly said the company may build cars to ward off the prospective threat Tatas' Rs 1 lakh car poses to the two-wheeler market. Tata Motors’ Rs 1 lakh 'people's car' will hit the roads in 2008, denting top-end motorcycle sales, provided the firm gets the product right. Bajaj's statement was the first confirmation that the country's top three-wheeler and second-largest motorcycle maker was interested in developing a low-cost car. Bajaj Auto had earlier announced it was developing a four-wheeler goods carrier, which is scheduled for launch in 2009. HDFC Bank (down 2.95% to Rs 982), HDFC (down 2.03% to Rs 1562) and Reliance Energy (down 2.30% to Rs 475) were the other losers. Banking stocks ended weak, with the BSE Bankex declining 1.98%. It was the top-loser among BSE sectoral indices. Union Bank (down 3.44%), Centurion BoP (down 4.10%), Andhra Bank (down 2.62%), UTI Bank (down 2.58%), and IOB (down 1.97%) had moved downwards. ICICI Bank slipped 1.80% to Rs 878.50, after it announced its Singapore branch, successfully priced the Euro 500 million Reg S Floating Rate Note under its Medium Term Note Programme (MTN). The Bank is the first Indian one to offer a benchmark sized two-year floating rate note in the Euro market. The offering had an Euro 862 million order-book with a total of 71 investors. New investors accounted for more than 50% of the deal size. The two-year floating rate notes of Euro 500 million were priced at a spread of 40 basis points over the three-month LIBOR. IT major Satyam Computers was the top-gainer, up 1.65% to Rs 471.80, on a volume of 5.15 lakh shares. However, other IT stocks succumbed to profit-booking. The BSE IT Index declined 1.2%. Tata Consultancy Services (TCS) was down 2.06% to Rs 1263, on reports that it may get a stake of up to 10% in Deutsche Telekom unit T-Systems for executing $1 billion worth of orders. Infosys Technologies lost 1.63% to Rs 2062.50, while Wipro declined 2.68% to Rs 584.80 on concerns arising from the rupee’s recent surge against the US dollar. The IT industry derives up to 60 - 70% of its export revenue from the US market. Hence, any strengthening of the rupee impacts the revenue and profits of IT firms. The US and the Europe, together, account for about 80% of India's high-tech export basket. The rupee rose to a 20-month high against the dollar on Monday, as banks sold dollar holdings to tide over tight cash conditions in the banking system. At 9:55 IST the rupee was at 43.35 per dollar, its highest since 22 July 2005. It had ended at 43.56/57 on Friday (23 March 2007). A week back, the rupee was at 44.11/12 per dollar (rupee closing on 16 March). The IT industry is eyeing an export turnover of $31 billion in the fiscal ending March 2007. State-run oil exploration major ONGC was up 0.95% to Rs 851.15, as crude oil prices moved north globally. Private sector steelmaker Tata Steel (up 1.10% to Rs 443.50) and FMCG major Hindustan Lever (up 1.10% to Rs 200.50) advanced. Reliance Communication (RCom) gained 1% to Rs 429.80, after it decided to start an overseas public offer for its international communication subsidiary, FLAG Telecom, for which the ADAG-group firm has shortlisted Goldman Sachs, Deutsche Bank, Morgan Stanley and UBS as merchant bankers for the process, which will see RCom divesting 10 - 15% equity. FLAG Telecom will be listed on the London Stock Exchange. FLAG Telecom is a 100% subsidiary of Reliance Communication. The proceeds raised from the IPO will be used to part finance expansion plans announced last year, which include laying 50,000 km fresh undersea cable in regions where there is dearth of international bandwidth. The expansion plan could entail an investment of about 1.5 billion dollar (nearly Rs 7000 crore). Index heavyweight Reliance Industries (RIL) was down 0.74% to Rs 1369, on a volume of 3.70 lakh shares. It had moved in a narrow range between Rs 1383.35 and Rs 1361. Reliance Industries (RIL) informed BSE that a separate meeting of equity shareholders, secured creditors (including debenture-holders) & unsecured creditors, will be held on 21 April 2007, for approving the scheme of amalgamation of Indian Petrochemicals Corporation (IPCL) with itself. Private sector Yes Bank was down 1.94% to Rs 146.60, and off its high of Rs 157.90 on BSE. A block deal for 48.80 lakh shares was struck in the Yes Bank counter at Rs 151.25 per share, on NSE. Sparsh BPO Services settled at Rs 104.75 on volumes of 48.97 lakh shares on BSE. The stock hit a low of Rs 104.75 and a high of Rs 157.05. Sparsh BPO Services’ listing on BSE followed a restructuring scheme of Spanco Telesystems and Solutions. A day ahead of its listing, BSE had set Rs 130.90 as base price for Sparsh, with 20% daily circuit filters. As per the scheme of arrangement between Spanco Telesystems and Solutions (Spanco) and Sparsh BPO Services (Sparsh), formerly known as Intelenet BPO Services, the domestic call center division of Spanco was demerged and vested into Sparsh on a going concern basis. As a part of the scheme, Sparsh allotted 79,12,275 equity shares of Rs 10 each to shareholders of Spanco in the ratio of an equity share of Rs 10 each for every three equity shares of Rs 10 each held by the shareholders in Spanco on the record date. The equity capital of Sparsh is Rs 16.14 crore and the face value per share Rs 10. Crisil advanced 5% to Rs 2614.80, on reports that around 20 companies were currently in talks with it for IPO gradings. Credit rating agencies are gearing up for increased activity following market regulator Sebi's decision to make grading of initial public offerings (IPOs) mandatory. Reports add that Crisil will charge 10 basis points of the amount proposed to be raised, with a ceiling of about Rs 10 - 15 lakh. Thus, even a mega-IPO will have a cap on fees. Glenmark Pharma rose 4.41% to Rs 618.50, after deciding to buy 90% stake in Czech firm Medicamenta, for an undisclosed amount. Construction firm Atlanta tanked 5% to Rs 315.15, extending a bearish phase ever since Sebi in late-February 2007, clamped down on alleged price manipulation in the counter. There were outstanding sale orders for 2.17 lakh shares at the 5% lower limit of the counter on BSE. Just 832 shares of Atlanta changed hands on BSE. From Rs 1080.75 on 22 February 2007 – the day when the market watchdog levelled allegations of price manipulation in the scrip, the stock of Atlanta has tumbled 70.9% in a little over a month, to the ruling Rs 314.15. In each of these trading sessions, the Atlanta stock had opened and ended at the lower circuit of 5%. On 22 February 2007, Sebi asked the promoter group, which comprises 16 entities, of Atlanta, and entities/persons associated with them (14 entities) not to deal in Atlanta's scrip. Rajoo Barot, Managing Director, and Sachin Jain, Company Secretary, also featured on the list. The share price of Atlanta rose abnormally after listing at Rs 170 on 25 September 2006. The scrip had surged in a short while, to reach Rs 1264.20 by 11 December 2006. Shares from the sugar sector had spurted in an otherwise weak market, on reports that the Centre had approved creating a 20-lakh tonne sugar buffer, besides providing export incentives of Rs 1,350 - Rs 1,450 per tonne to sugar mills. The bailout package — aimed at tiding over the present sugar glut and piling up of payment arrears to cane farmers, especially in Uttar Pradesh (UP) — was reportedly cleared by the Cabinet Committee on Economic Affairs (CCEA) at a late evening meeting on Saturday. No official confirmation for the reported development was available though, and the food ministry is expected to issue a statement later. The 20-lakh tonne buffer would be maintained by the factories themselves, even though it is the Centre that will foot the cost of interest, storage and insurance payable on this sequestered sugar. The total buffer quantity will be allocated among mills on a pro-rata basis, linked to the stocks individually held by them. The annual outgo from the exchequer on the 20-lakh-tonne buffer is expected at around Rs 400 crore, depending on how the stock pledged with banks is valued (at three months average or prevailing ex-factory price, whichever is lower) and interest payable on it. The food ministry is believed to have further recommended an additional Rs 440 per tonne support for raw sugar exports. The confirmation in this regard is also awaited. Given that the market for white sugar is not as promising as raw sugar — particularly with huge refining capacities coming up in neighbouring countries such as Bangladesh (15 lakh tonne), Indonesia (12 lakh tonne), Dubai (15 lakh tonne), Saudi Arabia (10 lakh tonne) and Egypt (7.50 lakh tonne) — a case has been made for giving extra incentives to raw sugar exports. Shares of Bajaj Hindusthan (up 4.12% to Rs 175.50), Sakthi Sugars (up 7.47% to Rs 68.35), Balrampur Chini Mills (up 3.86% to Rs 64.50), and Shree Renuka Sugars (up 11.41% to Rs 440) had surged. Godrej Consumer rose 3.55% to Rs 148.95, after announcing the formation of an equal joint venture with a Swedish firm to make sanitary napkins and diapers. The Indian consumer products giant has roped in Sweden's SCA Hygiene Products for the joint venture. The new firm, Godrej SCA Hygiene, will have an equity investment of Rs 20 crore ($4.6 million), which will be equally shared by both firms. Television content provider Balaji Telefilms surged 5.45% to Rs 123.45 on hopes that general entertainment channels will regain viewership from sports channels as India failed to enter the next round of the cricket world cup. Gas and petroleum distributor Aegis Logistics slipped 1.20% to Rs 115.10, after its board approved a proposal to acquire Kochi-based Konkan Storage Systems. Batliboi jumped 8.85% to Rs 102.65, after it informed buying Quickmill, a Canadian machine tools company, for Rs 22 crore in an all-cash deal. Bayer Diagnostics India surged 7.16% to Rs 604, on news Siemens AG would pay an interest of Rs 38.63 per share to public shareholders as part of a takeover deal with Bayer AG. Siemens will pay the interest over the original offer of Rs 629.45 per share to compensate for the delay in implementing the open offer, which was scheduled to be completed by September 2006. Thus, Siemens will effectively shell out Rs 668.08 per share of Bayer Diagnostics India. Goodyear India rose 9.98 % to Rs 175.20, after reporting 200.8% growth in net profit in Q4 December 2006. Goodyear India has posted a net profit of Rs 10.20 crore in the quarter ended December 2006 as compared to a net profit of Rs 3.39 crore in the December 2005 quarter. Net sales for the December 2006 quarter rose to Rs 237.68 crore from Rs 190.96 crore in the December 2005 quarter. Diversified firm DCM Shriram Consolidated surged 9.76% to Rs 94.50, after the company said it was considering the transfer or sale of its retailing business. DCM Shiram Consolidated (DSCL) said on Monday its board approved the transfer or sale of its rural retail division 'Hariyali Kisaan Bazaar.' The board also approved developing or selling the company's land holdings in five places including in Delhi. [With inputs from the internet]

Thursday, April 10, 2008

Premier Explosives Ltd (BSE Code-->526247) at the CMP of Rs.30.90, is trading cheap as compared to its Peer Solar Explosives Ltd. Buy with a price target of Rs.53--Rs.65--Rs.72, for the Short Term to Medium Term perspective: Triggers: 1. It has reduced its debt burden with the money from the selling of the Mushroom division last year. 2. Special Product Division dedicated for defence sector for production of Solid Propellants was completed during the year and was commissioned on 16th September, 2006. The Company is now mainly focussed on the Lucrative Defence Sector. 3. The Company has established two joint ventures abroad for manufacture of explosives and accessories. At one JV the production has commenced in April 2007. The second JV is expected to commence during July / August 2007. Both JVs making good good contribution during this financial year. 3. The Comapny earlier signed a 10 years (renewable for another 10 years) prestigious contract with Satish Dhawan Space Centre, SHAR, Indian Space Research Organisation (ISRO). The contract is for operation and maintenance of Second Propellant Plant at an annual value of about Rs. 70 million with price escalation on annual basis. The total value of contract would be around Rs. 700 millions. The operations have commenced from 18th January, 2007. 4. In the last fiscal the Premier Explosives Ltd got the following awards: a) The Company has been awarded Appreciation Certificate by Andhra Pradesh Pollution Control Board in the category of Best Greenbelt Industries. b) It has also received award of achieving highest rating in the ranking of India's Top 500 Manufacturing Small and Mid Sized companies during August, 2006. c) Naval Science & Technological Laboratory, D.R.D.O., Visakhapatnam, has presented Appreciation Award to the Company in recognition of its valuable contribution to them in the development of various specialized products. d) Premier Explosives Ltd has also received Certificate of Appreciation by Rotary Club in appreciation of company's service and support for Drinking Water Project and organization of medical camps in remote villages around twin cities. 5. The Indian explosive industry is one of the few highly developed ones in the world. The total consumption of explosives in India is amongst the first five in the world. The total market had been increasing steadily due to infrastructure development and more demand of key minerals and power. This increases the chance of this well established player to improve both on the top and the bottomlines. The company is moving at a rapid pace. 6. Explosives production in some of the countries had been monopolised by global giants like Orica, Dyno, UEE etc. This Company has established two joint ventures abroad to take advantage of better margins. Production has already commenced in one Joint Venture from 17th April, 2007. The production at second Joint Venture is has started during July, 200. Explosives production in some of the countries had been monopolised by global giants. Major contribution is coming from special products division, overseas ventures and operations and maintenance contracts during the financial year 2007-08. So there are multiple revenue streams of the company. Hence the scrip is expected to cross Rs.100 this time. 7. The company, one of the three in the country manufacturing the entire range of explosives and accessories for the civil/industrial requirement, is poised to become a defence/strategic industry supplier through capacity expansion, including missile fuel. Premier Explosives, which already produces the fuel, would double its capacity in about 12 months time frame. For the new project, it has already bought 150 acres of land off Hyderabad, near its existing plant, and purchase of another 100 acres from Indian Space Research Organisation at a subsidised rate has also been completed. The complete capex plan is almost ready. 8. Q3FY08 results were good considering that there was not income from the Mushroom Division in view of it being sold in the last Fiscal. Both the toplines and the bottomlines were flat, speaking Q-o-Q. This is no major achievement as this was achieved only from the income from its core divisions, i.e. manufacture of explosives. The net profits margins have also increased marginally.
Conclusion: Considering the above mentioned factors it has been found that the stock is trading cheap as compared to its peers. Buy with a Price Target of Rs.65--Rs.72 in the short to medium terms perspective.

Wednesday, September 17, 2008

WINNING STROKES: THINK DIFFERENT:
The US Government announced $85 billion loan to save AIG.... With so much positive news flowing, Bears will now be butchered in the Indian Markets. Yesterday in the Yahoo Group, SumanSpeaks, I talked of a Pre-Durga Pooja rally starting soon.....
What is the latest rumour on Ennore Coke Ltd??!! Why is ASM Technologies Ltd (BSE Code-->526433) called mini-Infosys??!! What is the latest on this hidden jewel..??!!!
Why are BGR Energy Ltd and Sunil High Tech Engineers Ltd called multi-baggers if one purchases them at the CMPs of Rs.279 & Rs.165??!!!
What is the latest on Reliance Industrial Infrastructure Ltd??!!!
Will Infosys Technologies Ltd get more orders from Bank of America??!!
Premier Explosives Ltd is looking very attractive at the CMP of Rs.30.5 after Indian Rupee Started to Depreciate. The company has two overseas subsidiaries in Georgia and Turkey and hence would be benefited immensely by the Rupee Depreciation.
Earlier Premier Explosives Ltd informed BSE that the Company formed a Joint Venture with M/s. VXL Technologies Ltd, Faridabad, called 'VTL Premier Pyrotechnics Ltd' for manufacture of pyrotechnic devices, fuzes etc., used for defence.
The Company was awarded "Defence Technology Absorption Award 2007" by Dr. Manmohan Singh, Honourable Prime Minister of India on May 12, 2008 which included a cash prize of Rs 10.00 lakhs.
Premier Explosives Ltd is showing continuous improvement in performance in the successive quarters, since a long time.The company recommended a dividend of 15% on the Equity Share Capital for the year ended March 31, 2008 on the amount paid up. The Company also came up with excellent set of numbers for the June, 2008 quarter when the Profit after tax (PAT) jumped to Rs.64.8 lakhs against a LOSS of Rs.76.3 lakhs in the Q1FY08.
Moreover, Premier Explosives Ltd is also setting up for backward integration, a Company by the name of "Premier Wire Products Ltd" with 60% equity as an ancillary Unit. The products manufactured by the Company will be used as raw materials in production of detonators. WITH SUCH MASSIVE DEVELOPMENTS TAKING PLACE IN ALL FRONTS DO U THINK Rs.30.5 is the fair price of the scrip of Premier Explosives Ltd.....???
The stocks in the Banking, Construction/Real Estate/Engineering, Oil Marketing Companies and Pharma Sectors (not all, like Ranbaxy Ltd could tank going forward) are expected to rise up in the days to come..........
Yesterday in the late hours the Paid Members were asked to buy stocks of select sectors...All these and more inputs to the Paid Group in the Morning Report.....
WASHINGTON – The U.S. government has agreed to provide an $85 billion emergency loan to rescue the huge insurer AIG, the The Federal Reserve said Tuesday.
The Fed said the U.S. Treasury Department was in full support of the decision.
The Fed determined that a "disorderly failure" of AIG could undermine already fragile financial markets.
The government will receive an 79.9 percent equity stake in AIG, the Fed said
Barclays to buy some Lehman assets: source
LONDON (Reuters) – Barclays Plc (BARC.L) agreed to buy bankrupt Lehman Brothers Holdings Inc's (LEH.P) main investment banking assets for about $2 billion, a source familiar with the situation said on Tuesday.
The deal, which is expected to be announced later on Tuesday or early Wednesday, would unite two big debt trading houses and could stanch the flow of customers fleeing Lehman in the wake of the largest bankruptcy in history.
The deal would include Lehman's core U.S. broker-dealer business, including equity, fixed income, M&A advisory and other assets, the source said.
Barclays won't be buying any of Lehman's real estate, real-estate-backed securities, derivatives positions or over-the-counter trades, The Wall Street Journal reported.
As many as 9,000 Lehman employees would find jobs with the UK bank, the newspaper reported on its website.
The deal will also not include Lehman's investment management division, which includes fund manager Neuberger Berman. On Monday, a person familiar with the situation said a sale of that unit was also close to being announced.
Private equity firms Bain Capital, Hellman & Friedman and Clayton, Dubilier and Rice have placed bids for the unit, the person said. Lehman had planned to sell a majority stake in the investment management unit before filing for bankruptcy, but is now selling the whole unit.
Earlier on Tuesday, Barclays had confirmed it was in talks to buy some of Lehman's assets on terms that would need to be attractive to its shareholders.
Lehman could not be immediately reached for comment.
Barclays was involved in frantic talks over the weekend to rescue Lehman, but quit after U.S. authorities would not guarantee the U.S. investment bank's trading obligations.
That prompted Lehman's New York-based holding company to file for Chapter 11 bankruptcy protection, sending shockwaves throughout world financial markets as a year-long credit crunch claimed another, bigger victim.
One of the bank's top 15 investors, who declined to be named, questioned the merit of pursuing Lehman in the current climate, however.
"Does Barclays not have better things to do with its capital? I don't think it's an environment for banking people to be brave," he said.
Barclays shares closed down 2.5 percent at 305.1 pence. The DJ Stoxx European bank index (.SX7P) fell 4.3 percent.
Most European bank shares were hit for a second day by fears of more collapses and higher borrowing costs, although U.S. banks surged on hopes for a solution to American International Group Inc's (AIG.N) liquidity crunch.

Friday, May 18, 2007

G M Breweies Ltd, which I mentioned to be McDowell in the country liquor space is on the upper circuit. Keep holding: Albert David Ltd recommended at Rs.90-91 range is now at Rs.105: Kernex Micro System Ltd recommended at Rs.142, a couple of days back in this blog is now at Rs.154. The stock as mentioned earlier is moving towards Rs.190 mark:Keep holding Tera Software Ltd with a Strict Stop Loss ofr Rs.92: Southern Online Bio Technologies Ltd (SBTL)is clocking huge volume today also on the news that the company will make huge profits by selling Bio-Diesel at Rs.2-3, magin per litre. The company could come up with a rights issue. It has alreadt set up a huge refinery and where the trial production started last year.The company's share price could close above Rs.13 today: Zenith Computer Ltd is also consolidating at the current price of Rs.67: Vamshi Rubber Ltd is also doing well today: Keep investing in the Small and the Mid-cap space: I am in the process of making another Blog which will only feature reports and important news on companies which were loaded on www.sumanspeaks.blogspot.com, from time to time and which gets lost in the information jungle of the latter:
Defence-related stocks: They have a lot of power
Head of Research at Karvy Stock Broking Hemindra Hazari says that he is very positive on the defence sector. He is optimistic about a lot of companies that are moving into defence. Premier Explosives Ltdone company, on which Hazari is very bullish. Hazari also says that the valuations of these companies are very high. Premier Explosives is eyeing around 50-60% growth in EPS for the next two years, he says. The earnings growth of most of these companies look strong in future, as most of them are moving into the defence sector.
On Premier Explosives and the Defence sector:
Karvy Stock Broking Ltd is very positive on the defence sector. We have about three to four stocks under coverage & Premier Explosives Ltd is one of them. I think that to understand the defence industry, one has to appreciate the fact that in India, there is always money for the government, to spend on defence. I take it extremely seriously both, from an external point of view as well as from an internal point of view. There are very large defence projects out there, where there is private sector participation. Among those are India’s missile programme, as well as India’s space programme, which does have a military application use. Some of these companies that we cover are involved in some of these projects, and a lot of it is classified information. We believe that there is good money to be made here, because if one sees some of their EBITDA margins in defence context, then they are extremely high and profitable. Premier Explosives is involved in some of these special projects, and we expect great revenues to start kicking off from second or third quarter of this year. On the growth in these companies: One has to understand that in a lot of these companies, the valuations are high. One has to see the earnings growth in some of these companies. For example, in the case of Aventel, one gets about 400% growth in EPS for this year. Whereas, in the case of Premier, one is looking between 50-60% growth in EPS for the next two years. The earnings growth in future seems extremely strong, because a lot of these companies are just moving into defence now, and those orders would lead to a phenomenal growth in both topline as well as in bottomline of these companies.

Monday, February 18, 2008

Premier Explosives in strategic radar
CMP: Rs.41.50
[An old news but has got lot of weight]
Some fund managers have started taking a serious look at the Premier Explosives counter. According to market circles, the stock, which had attracted lukewarm interest from the domestic and overseas institutions in the recent years, has come under research focus for a number of fund houses because of change in its business dynamics. The company, one of the three in the country manufacturing the entire range of explosives and accessories for the civil/industrial requirement, is poised to become a defence/strategic industry supplier through capacity expansion, including missile fuel. Premier would supply the fuel at a higher than normal margin and an undisclosed quantity to Satish Dhawan Space Centre, Sriharikota (SHAR). It also obtained a 10-year Rs 7 crore per annum renewable O&M contract from SHAR for its second propellant plant. (The margins for the defence deals are very high and this is reflected in the December, 2007 results when the net profits almost remained the same inspite of the sell of the mushroom division and clocking less net turnover). Mr A.N. Gupta, Vice-Chairman and MD, confirmed to Business Line from Hyderabad the developments regarding missile fuel, but declined to detail because of “strategic” reasons. He said that Premier, which already produces the fuel, would double its capacity in about two years. For the new project, it has already bought 150 acres of land off Hyderabad, near its existing plant, and purchase of another 100 acres from Indian Space Research Organisation at a subsidised rate would be complete in next three months (This has been aleady completed). The complete capex plan would be ready by six months, he added (This is also ready now). Premier has two overseas joint ventures in Turkey and Georgia (Both the Units started Commercial Productions and the company is getting overseas clients for the same). It also has 30 per cent equity interest in Premier Explochem, an explosive manufacturing outfit in Nashik. During FY 2004-05, it had hived off an explosives outfit as part of refocusing strategy. It also sold its Mushroom division assets for Rs 17.50 crore in April this year (The Company has reduced the interest burden with the money thus obtained and this is amply reflected in December, 2007 quarter results). (It is now a pure Defence Related company and is on its way of curving out a niche for itself). SO WHAT IS THE MANTRA NOW: JUST ACCUMULATE BEFORE IT RACES PAST Rs.60 mark once again. Just compare it with Solar Explosives Ltd and you will understand what I am saying.
Note: MY additions in the above write-up are given in coloured lines and in Brackets(Braces)....

Wednesday, May 09, 2007

Sensex opens below 13,700, the markets trade weak: Hold on to Southern Online Bio Technologies Ltd and Premier Explosives Ltd:Dhoot Industrial Finance Ltd hits the buyer Freeze: U can add some of my recommended picks in a staggered way on all declines: Since Premier Explosives is holding only 30 % shares of Premier Explochem Ltd, and is not directly related to the latter, and hence, the former(Premier Explosives) will not have any major impact on its bottomlines. Moreover, all the companies are generally,compulsorily Insured for any such mishaps and hence my point is doubly insured: It seems now that most of the companies in the Small & Micro-cap space are interested in publishing the results in June, 2007, to avoid the May Carnage; if any: Concentrate on Telecom sector and to certain extent on select metal counters:
The market opened weak as profit booking continued for the third straight session, pulling the Sensex below the 13,700 mark. At 10:09 IST, the Sensex was down 69.66 points to 13,694.75. It opened lower at 13,709.95, and touched a low of 13,679.76. Its high for the day so far was 13,745.60.Among the Sensex pack, 24 of the 30 components declined. The total turnover on BSE amounted to Rs 338 crore. The market breadth was negative with 546 shares advancing as compared to 793 that declined. PSU oil exploration major ONGC was the top loser, down 2.42% to Rs 899.90 on 72,544 shares. Ranbaxy (down 1.67% to Rs 382.20), Bharti Airtel (down 1.46% to Rs 804), and ACC (down 0.65% to Rs 879.90) were the other losers Index heavyweight Reliance Industries (RIL) declined 0.16% to Rs 1591.10 on 51,316 shares. Tata Steel was the top gainer, up 0.70% to Rs 557 on 1.37 lakh shares. Hero Honda (up 0.65% to Rs 684), Wipro (up 0.59% to Rs 549.50), and REL (up 0.26% to Rs 506.95), followed. Fortis Healthcare, which listed today, was hovering at Rs 105.90 in early trade, a discount of 1.9% over the IPO price of Rs 108. The stock debuted at Rs 105, which was also its low so far. It hit a high of Rs 109.10. 10.2 lakh shares changed hands in the counter on BSE. Fortis Healthcare had priced its 4.59-crore equity shares at Rs 108. The price band for the IPO was Rs 92 to Rs 110 per share. The issue, which had opened for subscription on April 16, 2007 and closed on April 20, 2007, was subscribed 2.78 times. The qualified institutional buyers (QIB) portion was subscribed 2.72 times, non-institutional portion 1.74 times and the retail portion 3.26 times Asian shares were flat on Wednesday, halting a recent strong run. Caution ahead of the outcome of the meeting of the US Federeal Reserve and rebound in oil prices kept a lid on Asian markets. US stocks closed flat on Tuesday as investors locked in profits after five straight sessions of gains in blue chips, a day before Fed's meeting on interest-rate policy. The Dow Jones industrial average dipped 3.90 points, or 0.03%, to end at 13,309.07, after falling as much as 75 points. The Standard & Poor's 500 Index slipped 1.76 points, or 0.12%, to finish at 1,507.72. But the Nasdaq Composite Index edged up 0.80 point, or 0.03%, to close at 2,571.75. While no one expects a rate move by the Fed, when it meets on Wednesday, investors are keenly awaiting the US central bank's latest assessment of the world's biggest economy. The Bank of England is seen lifting rates to 5.5% on Thursday, a move that would put British interest rates above those in the US for the first time since January 2006. The European Central bank (ECB) is expected to hold its rates steady at 3.75% on Thursday, but signal a hike in June. A spate of merger and acquisition activity as well as increasingly eye-popping takeover bids have helped propel many global indices to record highs in recent days, supporting the view that the bull market has to run further. FIIs remained in buying mode on the bourses on Monday, 7 May. FIIs were net buyers of Rs 96.70 crore of equities on Monday,7 May. But this was lower than the inflow of Rs 212 crore on Friday, 4 May. As per provisional data, FIIs were net sellers of Rs 205-crore equities on 8 May 2007, the day the Sensex lost 114 points. Domestic institutional investors were net sellers of Rs 124.54-crore equities on Tuesday, 8 May. Oil prices rebounded to above $65 a barrel on Wednesday, 9 May, as new attacks on Nigeria's oil industry deepened supply losses, interrupting a six-session losing streak that had driven prices to their lowest level since 26 March. London Brent crude was up 6 cents to $65.60 a barrel.

Friday, July 31, 2009

WINNING STROKES: THINK DIFFERENT:
[Updated]
My recommended CHD Developers Ltd (BSE Code: 526917) hit the buyer freeze. It launched a project named as CHD Lifestyle Independent Floors as part of its mega integrated township project CHD City at Karnal. Lifestyle Floors are "Stylish, Comfortable and Affordable" and further step to show Company's commitment to provide affordable housing.
Sicagen India Ltd hit the buyer freeeze in the afternoon trade before cooling down a bit. The company came out with superb bottomline on Q-o-Q basis, beating market expectations. The future results will be good as the sector in which the company is performing (Auto and Construction or Building Materials), has started to look up. The company's drum making venture will also give good returns. A stock which will give you multi-bagger returns going forward.
My recommended Varun Industries Ltd have become more than double in just 3 months time frame. Yesterday, also it hit the buyer freeze.
XL Telecom and Energy, Ennore Coke Ltd and Glory Polyfilms Ltd are expected to come up with results today. If the results are good then all these stocks could start hitting the buyer freezes. In case of Ennore Coke Ltd, the topline would be good but I am a little apprehensive about the bottomline.
Phoenix International Ltd hit the buyer freeze before cooling down a bit. The company has leased its 5 lakh sq. ft of land to a reputed company and hence now there is no problem of bounced cheques. Besides the fact that its group company Focus Energy Ltd is starting gas production from FY10, augurs well for the company. The company has huge land holding in Chennai (Madras)which will be used a shoe park.
Northgate Technologies Ltd, Shreyas Shipping and Logistics Ltd (CMP: Rs.31.15), Sunil High Tech (CMP: Rs.150.95), etc should do well going forward and hence try to accumulate them on declines for 12-18 months time frame. Sunil High Tech Engineers Ltd was earlier recommended around Rs.55-56 ranges and asked to accumulate when it was going down.
Northgate Technologies Ltd is the owner of http://www.bharatstudent.com/, which is ranked 3rd (third) after http://www.orkut.com/ and http://www.facebook.com/ among the Indians. For more on the company please visit: http://www.northgatetech.com.
My old favourite Premier Explosives Ltd (CMP: Rs.36) came out with superb results for the Q1FY10. The total income of the company for Q1FY10 came out to be Rs.23.45 Cr as against Rs.15.14 Cr in Q1FY09. The net profit of the company for Q1FY10 came out to be whooping, Rs.1.42 Cr as against Rs.64.8 lakhs in the same period previous year. The EPS of the company for Q1FY10 alone is Rs.1.75. Moreover while the operating profit margin remained flat, the net profit margin increased in Q1FY10 to 6.16% as against 4.28% in the same period previous year. The cash EPS is now a whooping Rs.2.13 as against Rs..1.16 in the same period previous year. The company's overseas ventures are going great guns . The company get substantial amount of revenues from the Cement Companies and since the cement sector is looking great Premier Explosives Ltd is expected to cross Rs.100 in the near future; more so because its equity capital is only Rs.8.12 Cr. The company is also into defence deals and has good order book position as of 30th June, 2009. The allocation of more funds in the defence budget (Union Budget, FY10) is positive for the company.
For more on Premier Explosives Ltd, please visit: http://www.pelgel.com
Ritesh Properties and Industries Ltd is now into real estate sector apart from being a garment exporter (Textile sector). Recently the company has marked its foray in realty sector by entering into a joint venture agreement with developers Ansal Properties and Infrastructure (API) for developing a premium housing project and a business park in Ludhiana. The land is located at a prime location on Ludhiana-Chandigarh state highway. The total projected revenue will be about Rs.800 crs. The project, christened as Hampton Court spreads across 42 acres on the Ludhiana-Chandigarh road, well within the municipal limits of Ludhiana city. Initial work on the project has already started. A multi-bagger in the making. For more on it please visit: http://www.riteshindustries.us

Strong Q1 June 2009 earnings from State Bank of India (SBI) and Mahindra & Mahindra (M&M) and firm global stocks helped the key benchmark indices snap a three day losing streak. A recovery in Chinese shares after Wednesday's (29 July 2009)'s 5% slide helped soothe investors' nerves. The BSE 30-share Sensex jumped 214.50 points or 1.41%, up close to 320 points from the day's low. The Sensex attained its highest closing since 11 June 2009. IT, realty, banking and FMCG stocks led gains. But index heavyweight Reliance Industries (RIL) slipped. The market breadth was strong.

As per the provisional figures on BSE, foreign funds bought shares worth Rs 366.81 crore and domestic funds sold shares worth Rs 286.67 crore today, 30 July 2009.

Volatility was high as traders rolled over positions from July 2009 contracts to August 2009 contracts in the futures & options segment ahead of the expiry of July 2009 contracts today, 30 July 2009. Rollover of Nifty positions from July 2009 contracts to August 2009 contracts was about 60% at the end of Wednesday's (29 July 2009) trading. Rollover in Mini Nifty futures was about 43%.

The key benchmark indices slipped in early trade tracking losses in Asian stocks. After an initial slide the market moved to positive zone for a brief period before slipping into the red again. It recovered sharply in mid-morning trade tracking recovery in Chinese stocks. The market extended gains in early afternoon trade as the latest data showed inflation remained in the negative territory for a seventh week in a row. The market pared gains after surging to a fresh intraday high in mid-afternoon trade. The market extended gains in late trade on strong Q1 results from SBI and M&M.

The market today snapped last three days' losing streak. From a recent high of 15,378.96 on 24 July 2009, the Sensex had lost 205.50 points or 1.33% to 15,173.46 on Wednesday, 29 July 2009.

The wholesale price index (WPI) fell 1.54% in 12 months to 18 July 2009 compared to previous week's fall of 1.17% the government data showed at 11:50 IST. But the government revised upwards inflation for the week ended 23 May 2009 to 1.34% from 0.48%.

The Q1 June 2009 results announced so far have been encouraging, with lower costs helping bottomline growth. The combined net profit of 1438 companies rose 25.8% to Rs 67307 crore on 5.6% fall in sales to Rs 622730 crore in Q1 June 2009 over Q1 June 2008.

Finance Minister Pranab Mukherjee told the parliament on Wednesday that economic growth was showing certain signs of improvement, and trade minister Anand Sharma said efforts were being made to reduce the trade deficit. The economy grew by 6.7% in 2008/09 (April/March), and Mukherjee said India will able to maintain that level of growth. On Tuesday, 28 July 2009, the Reserve Bank of India (RBI) projected growth in 2009/10 at 6% with an upward bias.

A weak monsoon remains a cause of concern. India's monsoon rains were 18% below normal in the week to 29 July 2009, having been above normal in the preceding two weeks. Total rainfall since the beginning of June was 19% below average, the India Meteorological Department said on Thursday. More than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.

Meanwhile, foreign direct investments (FDI) in India declined 43% to $2.2 billion in May 2009 over May 2008.

European shares rose on Thursday, as investors digested a raft of earnings, which continue to be mostly positive. Key benchmark indices in France, Germany and UK were up by between 0.53% to 1.2%.

Asian stocks rose, recovering from early losses. China's Shanghai Composite ended 1.69% higher, recovering from an initial fall. The index had declined 5% on Wednesday amid concern the government will curb inflows into a market that had more than doubled from last year's low.

Meanwhile, a statement on the People's Bank of China Web site late Wednesday cited a senior official as saying the central bank will emphasize market-based forces, rather than administrative controls in setting credit growth. The statement suggested the government isn't planning to set loan curbs at this time.

Key benchmark indices in Hong Kong, Singapore, South Korea and rose by between 0.49% to 1.23%.

Japan's Nikkei rose 0.51% in volatile trade as Japanese manufacturers increased production for a fourth month in June 2009, capping the fastest quarterly output expansion in more than half a century and helping the economy rebound from its deepest post-war recession.

Trading in US index futures indicated Dow could rise 66 points at the opening bell today, 30 July 2009.

US stocks fell on Wednesday, 29 July 2009 as investors worried that China might be ready to hit the brakes on lending, a move that could curb demand and hinder the global economic recovery.

The Dow Jones Industrial Average was down 26 points, or 0.3%, to 9,070.72. The S&P 500 index fell 4.47 points, or 0.5%, to 975.15, while the Nasdaq Composite Index was down 7.75 points, or 0.4%, to 1,967.76.

In economic news, orders for durable goods fell 2.5% in June 2009, much more than expected. Meanwhile mortgage applications fell for the first time in four weeks.

The BSE 30-share Sensex rose 214.50 points or 1.41% to 15,387.96, its highest closing since 11 June 2009. The Sensex rose 236.45 points at the day's high of 15,409.91 in late trade. The Sensex lost 107.98 points at the day's low of 15,065.48 in early trade.

The S&P CNX Nifty was up 57.95 points or 1.28% to 4,571.45. Nifty August 2009 futures were at 4578, at a premium of 6.55 points as compared to the spot closing of 4571.45. Turnover in NSE's futures & options (F&O) was Rs 94,477.38 crore, much lower than Rs 1,16,508.34 crore on Wednesday, 29 July 2009. BSE clocked a turnover of Rs 6,027 crore, lower than Rs 7,534.13 crore on Wednesday, 29 July 2009.

The Sensex is up 5,740.65 points or 59.5% in calendar year 2009 as on 30 July 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex has risen 7,227.56 points or 88.56% as on 30 July 2009.

Coming back to today's trade, the market breadth, indicating the overall health of the market, was strong. On BSE, 1,499 shares advanced as compared with 1,167 that declined. A total of 85 shares remained unchanged.

Among the 30-member Sensex pack, 23 rose while the rest declined.

The BSE Mid-Cap index was up 0.54% and the BSE Small-Cap index was up 0.8%. Both the indices underperformed Sensex.

The BSE IT index (up 2.8%), the BSE FMCG index (up 2.7%), the BSE Bankex (up 2.2%), the BSE TECk index (up 1.57%), outperformed the Sensex.

The BSE Oil & Gas index (down 0.19%), the BSE Power index (down 0.03%), the BSE Metal index (down 0.02%), the BSE Healthcare index (up 0.09%), the BSE Consumer Durables index (up 0.13%), the BSE Capital Goods index (up 0.2%), the BSE Auto index (up 0.86%), the BSE PSU index (up 0.89%), the BSE Realty index (up 1.3%), underperformed the Sensex.

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 1.37% to Rs 1,899.90 after Anil Ambani said he will approach the Supreme Court on Thursday, 30 July 2009, seeking a final hearing on the two-year-old gas supply dispute on 1 September 2009. According to him the gas supply dispute between RIL and Reliance Natural Resources (RNRL) vitally affects public interest. The matter concerns power projects of national importance representing a capacity of 12,000 megawatt (MW) and an investment of over Rs 50,000 crore and affects the interests of over 10 million shareholders, he said.

The Supreme Court on 20 July 2009, asked the energy giant and former group firm Reliance Natural Resources (RNRL) why a gas pact between the two should not be cancelled. The court has scheduled next hearing on the dispute over the gas supply to Reliance Natural Resources (RNRL) on 1 September 2009.

RNRL has asked the Supreme Court to dismiss the government's affidavit on the dispute, even as the petroleum ministry has suggested that the court treats the pact between the two brothers null and void. The dispute concerns supply of natural gas from RIL's field, off the Andhra Pradesh coast, as also the price at which Reliance Natural Gas will get the fuel for power projects within the group.

In reply to the lawsuit filed by Reliance Industries challenging the Bombay High Court order, RNRL has said the government has no role to play in the private gas sharing dispute, and certainly not as a party to the row.

Oil exploration pivotals were mixed after crude futures tumbled almost 6% Wednesday as US oil inventories unexpectedly rose, raising fresh concerns of weak demand. India's largest exploration firm by sales ONGC rose 0.12%. Fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms.

Cairn India fell 0.58% as consolidated net profit fell 67.2% to Rs 45.44 crore on 49.2% fall in sales to Rs 204.95 crore in Q2 June 2009 over Q2 June 2008. The company declared the results after trading hours on Wednesday.

PSU OMCs rose on fall in crude oil prices. BPCL and HPCL rose by between 4.3% to 8.01%. Lower oil prices will reduce underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

Indian Oil Corporation rose 4.08% as its net profit jumped 787.15% to Rs 3682.83 crore in Q1 June 2009 over Q1 June 2008. The company announced the result during market hours today.

Auto stocks rose after posting strong Q1 June 2009 results in the past few days. India's largest truck market by sales Tata Motors rose 0.44%. The company on Tuesday, 28 July 2009 reported 57.54% rise in net profit to Rs 513.76 crore on a 7.17% decline in total income to Rs 6723.99 crore in Q1 June 2009 over Q1 June 2008.

India's largest tractor maker by sales Mahindra & Mahindra rose 1.22% after net profit rose 151.63% to Rs 400.80 crore on 28.04 % rise in total income to Rs 426.61 crore in Q1 June 2009 over Q1 June 2008. The results for the current quarter include the figures of the erstwhile subsidiaries Mahindra Holdings and Finance and Punjab Tractors which were merged with the company. Hence, the figures of the current quarter are not comparable with those of the previous year's quarter. The results hit the market just a while back.

India's top small car maker by sales Maruti Suzuki India was flat at Rs 1,397.70.

India's largest bike maker by sales Hero Honda Motors was flat at Rs 1,639.60. The company posted 83% jump in net profit to Rs 500 crore on 34% rise in total revenue to Rs 3865 crore in Q1 June 2009 over Q1 June 2008. The company announced the Q1 result after market hours on Wednesday, 29 July 2009.

Rate sensitive realty shares reversed early losses as inflation remained in the negative zone. Investors are concerned that the central bank may start reversing its interest-rate cuts in early 2010 as food and energy prices fan inflation. Rising interest rates may dent property demand as most of the commercial and housing deals are driven by finance.

India's largest real estate developer by sales DLF rose 1.02% ahead of its Q1 June 2009 result today. Unitech, Indiabulls Real Estate, Phoenix Mills and Omaxe rose by between 0.95% to 3.31%.

IT stocks rose on weak rupee. Better-than-expected Q1 June 2009 results by IT pivotals Infosys, Wipro and TCS also underpinned sentiment for IT stocks. TCS, Infosys and Wipro rose by between 1.34% to 6.04%.

The rupee recovered against the dollar after hitting a one-week low in early trade. The partially convertible rupee was hovering at 48.33/48.34, firmer than Wednesday's close of 48.42/48.43. A weak rupee boosts revenues of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

Patni Computer Systems rose 12.55% after the company said it will scout for acquisitions in the range of $50 million-$200 million in Europe and the Asia-Pacific to help lower its dependence on the US market.

Bank stocks rose on strong Q1 results from State Bank of India, India's biggest commercial bank in terms of branch network. State Bank of India (SBI) rose 4.37% as its net profit jumped 42.02% to Rs 2330.37 crore on 29.86% rise in total income to Rs 21041.51 crore in Q1 June 2009 over Q1 June 2008. The results hit the market during trading hours today.

India's second largest private sector bank in terms of operating income HDFC Bank rose 2.95%. India's largest private sector bank in terms of operating income ICICI Bank rose 3.14%.

Some FMCG stocks rose on improvement in India's annual monsoon in July 2009 after a dry spell in June 2009. FMCG firms derive substantial revenue from rural sector. Britannia Industries, ITC, Dabur India, Nestle India, United Spirits, Tata Tea, rose by between 0.65% to 2.79%.

India's largest FMCG company by sales Hindustan Unilever rose 5.15%. The company reported a 2.68% fall in net profit to Rs 543.19 crore on a 5.06% increase in total income to Rs 4536.17 crore in Q1 June 2009 over Q1 June 2008. The results were declared during trade hours on Tuesday, 28 July 2009. India's largest private sector steel maker by sales Tata Steel rose 2.53% even as net profit fell 47% to Rs 789.83 crore on a 8.16% decline in total income to Rs 5661.89 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on Wednesday, 29 July 2009.

India's second largest steel maker by sales Steel Authority of India rose 3.26% even as net profit fell 27.74% to Rs 1326.09 crore in Q1 June 2009 over Q1 June 2008. The company announced the result during trading hours today.

India's largest copper market by sales Sterlite Industries rose 0.89%. The company's net profit fell 68.5% to Rs 112.70 crore in Q1 June 2009 over Q1 June 2008. The result was announced during trading hours on 29 July 2009.

Construction stocks rose on government's thrust on infrastructure sector in Union Budget 2009-2010. Era Infra Engineering, Gayatri Projects and IVRCL Infrastructure & Projects rose by between 1.56% to 3.14%.

But capital goods stocks fell on profit taking after a recent surge triggered by government's thrust on the infrastructure sector in Union budget 2009-2010. Bharat Heavy Electricals, Punj Lloyd, ABB, Praj Industries, Siemens fell by between 0.06% to 1.86%.

Cement stocks rose on posting good Q1 June 2009 results. Grasim Industries, ACC, Ambuja Cements and Ultratech Cements rose by between 0.78% to 4.1%. Some power stocks rose after a strong response to the Adani Power initial public offer which opened for subscription on Tuesday, 28 July 2009. NTPC, Power Grid Corporation Of India, Torrent Power rose by between 1.45% to 2.96%. Reliance Infrastructure rose 1.8% ahead of its Q1 June 2009 result today.

Sun Pharmaceuticals Industries tumbled 3.62% after net profit fell 56.7% to Rs 121.51 crore on a 39.5% decline in sales to Rs 405.88 crore in Q1 June 2009 over Q1 June 2008. The company announced the results during trading hours on Wednesday, 29 July 2009.

Other healthcare stocks, Cadila HealthCare, Piramal HealthCare, Lupin fell by between 0.02% to 3.7%.

Unitech clocked highest volume of 1.54 crore shares on BSE. Suzlon Energy (1.47 crore shares), Mahindra Satyam (1.14 crore shares), Ispat Industries (1.1 crore shares) and Ruchi Soya Industries (1.08 crore shares) were the other volume toppers in that order.

Tata Steel clocked the highest turnover of Rs 255.38 crore on BSE. Housing Development & Infrastructure (Rs 185.26 crore), DLF (Rs 171.59 crore), Suzlon Energy (Rs 145.94 crore) and State Bank of India (Rs 144.07 crore) were the other turnover toppers in that order.

Thursday, February 01, 2007

Good News on Premier Explosives Ltd:

As you are aware that I had recommended Premier Explosives a couple of days back when the stock was in the lower circuit. Till that date it did not come down heavily from the recommended price leave alone the lower circuit..... I had already posted a Research Report on this company at www.eindiabrokers.com for the benefit of all and sundry. But, those super intelligent investors who seems to know everything and has an opinion on everything, and who might have exited the counter using their own gray matters, must be banging their heads on the ground; as there is a good news on the counter: Premier Explosives Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 31, 2007 has proposed to seek the approval of its shareholders through Postal Ballot for a resolution to give authority to Board for sale of assets of its Mushroom Division. This will give additional revenues to the company's Kitty which will help the company's expansion. This news could propel the stock to above Rs.100 in the days to come. Please keep a close eye on the counter and Keep away from the "Idiots and Thugs" if u want to make money from the markets. The more u avoid conferences in Yahoo Messanger, the better will it be for ur financial health. Best wishes, Suman Mukherjee India. www.eindiabrokers.com www.sumanspeaks.blogspot.com http://finance.groups.yahoo.com/group/SumanSpeaks/

Saturday, June 16, 2007

Good news on Premier Explosives Ltd: Hope this will put the hearts of bruised and battered souls in order: I have mentioend ealier that this company will declare good results at the end of this months--but many took it as a disbelief, but those who had taken the news seriously and had accumulated the stock around Rs.37--Rs.41 range will be now be rewarded. This is equity markets, where patience is the key parameter to spin money. I have mentioned a number of times that I am too bullish on this counter:
The Premier Explosives Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 30, 2007, to consider and take on record the Audit Financial Results for the Financial Year ended March 31, 2007 and also considering recommendation of dividend for the year 2006-2007.
Besides the results will be excellent as mentioned earlier in my report at www.bcozindia.com and www.sumanspeaksplus.blogspot.com, which will give it the necessary thrust to move ahead. A major shareholder has already increased his stake in the company to 5.18%. Premier Explosives had shown a quantum jump in net profits for the quarter ended December, 2006. During the period, the company reported a 56.30% rise in profits to Rs 7.94 million from Rs 5.08 million, as compared to the same quarter last year. But the sales for the quarter declined marginally by 5.91% to Rs 159.26 million compared with the corresponding quarter, a year ago----showing that the margins of the company has increased and also its cost cutting measure are turning effective. Shares of the company closed up Rs 0.50, or 1.17%, at Rs 43.15. The total volume of shares traded at the BSE was 12,219 on last Friday.
In the same way the people will get benefitted in Southern Online Bio Technologies Ltd with few weeks, after it starts commercial production and nets a big order from a South India based Transport company, which is expected to absorb 85% of the produce.
I am also bullish on Torrent Power Ltd and Vishal Exports Ltd for the long term.

Friday, February 02, 2007

Premier Explosives comes out with wonderful Numbers:
Premier Explosives came out with wonderful set of numbers for the December, 2006. This time my sources did not disappoint me and I am bang on target.
The Net Sales from Operations: Rs.15.93 Cr ( Rs.16.92 Cr)
Other Income--->Rs.64.68 lakhs ( Rs.34.53 lakhs)
PBT--->Rs.1.24 Cr( Rs.74.11 lakhs)
Provisions for Tax-->Rs.44.89 Lakhs (Rs.23.27 Lakhs)
Net Profit-->Rs.79.44 Lakhs (Rs.50.84 lakhs)
EPS --->Re.0.98(Re.0.63).
Thus I do not think there is any problem from Premier Explosives in the days ahead. Also BSEL Infrastructure Realty Ltd has 55 lakh sq. ft of land available for development. The net revenues could be around Rs.1500 Cr for the next 3 to 4 years.
The company's order book position has crossed Rs.200 Cr.
Also Vishal Exports Overseas Ltd came out with disappointing set of numbers for the December, 2006 quarter considering Q-o-Q. But sequentially speaking the results are satisfactory.
My morning Call on NR International saw it hit the 20 % buyer freeze. Agro Dutch Industries and Nagpur Power and Industrires Ltd are also doing well.
More in the following postings.....
Best wishes,
Suman Mukherjee
India.

Friday, March 02, 2007

Post-Budget Focus:
Today I will focus my attention on three sectors only, where I have recently recommended some stocks: Good News in the Defense Sector: The companies which are supplying equipments to the defense departments are likely to get benefited immensely due to increased allocation of the defense expenditure upto Rs.90, 000 Cr. Hence, BEML, BEL, Premier Explosives Ltd etc are likely beneficiaries. In case of Premier Explosives it is double whammy:
(a) The company is expected to get a new contract from the Defense in this month, (b) It is going to complete the due diligence for the selling the assets of the mushroom division,
(c) It is going to utilize the proceeds for the sale of the assets, for further expansion and concentrate on Defense related deals or one can say focus on core competency,
(d) The proceeds will be utilized to retire the old debts the company is having at present,
(e) Its Special products division is going to add substantially both to the topline and bottomines,
(f) Its Overseas JVs has started to deliver, which is amply reflected in the last quarter results. Besides this the company will benefit from the buoyancy in the cement & mining ( read coal exploration) sectors, who are primary clients of Premier Explosives Ltd. It will also gain indirectly from the reduced Customs duty on Capital Goods (or one cay say inputs and machinery), sops to steel industry (which may lower price) and higher allocation for the Infrastructure. Good News for Construction Sector: The companies which are mainly into housing like Garnet Construction, Ganesh Housing, or Narendra Properties might be better placed as they are mainly into making of housing colonies and not Road Projects. Garnet Construction Ltd, Ganesh Housing Ltd and D S Kulkarni is already up today. In case of Garnet Construction Ltd there are additional benefits like government giving sops to plywood industry, which could arrest further price escalation of Plywood, which is an essential Building Material. There are also talks going on that the company could go in for private placement of equity at Rs.150 per share to a US company which could further take the share price to around Rs.170—Rs.180 range within the next one to 2 months time, once this is officially announced. One must have seen how private placement for Soma Textiles & Industries Ltd triggered a rally in the counter. Hence I am positive on these companies, though Garnet Construction, which I recommended earlier, is my best pick today also. It is to be noted that however much the government tries to pull down the prices of the Real Estate, it will not succeed as the demand is outstripping supply by miles. With Both FDI and FII investmemnts peaking, junior and senior executives are flush with money to go it for the purchase of houses. Also, with still liberal interest rate regime, people can easily go for the purchase of apartments…..Bharat Nirman Still remains the cornerstrone of UPA Government’s policy with 31.6 % increase in budget allocation to Rs.24, 603 Cr. 7, 83,000 rural houses have been constructed up to December, 2006 and 9, 14, 000 houses are under construction and the annual target of 15, 00, 000 houses is likely to be exceeded. This is a great news for housing companies. Clearly Bharat Nirman would continue to be a key business provider to the small and large infrastructure companies in the country. 3. Bad News for Media Sector: There were no incentive in the Budget for the media sector. On the Contrary, the withdrawal of customs duty exemptions/ concessions on recorded magnetic tapes for producing TV Serials and other equipments such as TV Cameras, audio recording equipment and so on is likely to have a negative impact on content providers such as Balaji Telefilms and UTV Software and on broadcasters in general. Digital Cinema Projects will not attract a customs duty of 7.5 %, which will have a negative impact on Pyramid Saimira, Cinemax Ltd, which imports its digital projectors. One of the recommended companies, Sanguine Media Ltd, has shed all these negatives and is in the buyer freeze.
But then all these are proposed and unless the Finance Bill is passed in the parliament, all the provisions are as usual.
More in the following positings.............
Best wishes,
Suman Mukherjee
India

Wednesday, April 04, 2007

Important developments on Premier Explosives Ltd:

This is remind you all that Premier Explosives Ltd Sold the assets of Mushroom Division to M/s. Inventaa Chemcials Ltd for a consideration of Rs 17.50 crores plus value of stocks, work -in-progress and finished goods at the close of business hours on April 01, 2007. So today the mushroom division no longer exits in the company. As mentioned earlier the company will use the proceeds for carrying on the expansion programmes and also to clear some old debts. This will also help the company to focus on its core sector of operations, that is defence and private contracts for explosives and maintenance of explosives. I am looking at a target of not less than Rs.150--Rs.250 in the next 18 months to 24 months time frame. The EPS of the company is expected to increase considerably in the days to come as lot of their joint ventures are going to kick off from this month. Two of the overseas joint ventures are expected to kick off from this month. Two more are expected to kick off in the next month. The company is doing excellently well in all its front. The stock at the current price of Rs.42.5 is available at the price of a penny. IT is good buy for the medium to long term. Two other stocks which still looks good speculatuive buys(as mentioned earlier) are Goldstone Technologies Ltd and Zeno Tech Labs Ltd at the CMP of Rs.66 and Rs.109. I have mentioned earlier that great R J holds considerable chunks in ZenoTech Labs Ltd. Hope u have made good money from my calls of Garnet Construction Ltd at Rs.45.5 and Rs.49.5 & Sanguine Media Ltd at Rs.28 and Rs.32.5.

Wednesday, January 24, 2007

Today's Call:
Buy Premier Explosives Ltd at Rs.51.20 with a price target of above Rs.100 in 3 to 6 months time frame.
Premier Explosives manufactures explosives and also grows white button mushrooms. The company recently got a contract worth Rs 7 crore per year from ISRO for maintenance of a propellant plant for the premier space organisation.
The company recently started production of specialised products for defence sector. The commercial production at this division commenced from September 2006. Take position in the stock ahead of the results. It has also been recommended by a brokerage house with some hefty targets.
The stock did not perform in the bull run and hence the catch.
Best wishes,
Suman Mukherjee India.

Tuesday, March 06, 2007

IT pivotals, RIL proved to be a springboard for the 282-point rebound of Sensex: Invest in Housing and Real estate companies, as some of them are now available at bargain price & in Defense related companies: Premier Explosives hits the buyer freeze: Please wink at the comments made by Mr.Alen Greenspan about US Recession: Indian economy is domestic driven unlike other South Asian countries:
The market recouped a portion of the recent heavy losses, tracking a recovery across Asian markets. Short-covering in derivatives also played a part in today's remarkable upsurge. IT, telecom shares and leading banks edged higher. An upmove in index heavyweight Reliance Industries (RIL) provided the much-needed springboard for the sharp rebound. The 30-share BSE Sensex jumped 282.05 points (2.2%), to settle at 12,697.09. A bout of volatility struck in afternoon trade, and the market was firm till then. A sudden sell-off later had pulled the Sensex down up to 12,427.13 by 12:56 IST, just 12.09 points higher for the day. The S&P CNX Nifty gained 79.15 points (2.2%), to settle at 3,655.65. The Nifty March 2007 futures were at 3,644 compared to the spot Nifty closing of 3655.65. The BSE clocked a turnover of Rs 3807 crore compared to Monday (5 March 2007)’ s Rs 3996 crore. Turnover on NSE’s futures & options segment rose to Rs 35406.27 crore from Monday’s Rs 33865.52 crore. Asian shares recuperated from the recent steep losses, as investors struck bargains. Key benchmark indices in the Asian region rose 1% to 2%. Asian markets had declined sharply over the past few days due to worries pertaining to the US economy, volatile markets in China, and more frequently, the unwinding of yen carry trades, or when investors borrow the yen to take advantage of low interest rates in Japan, and then invest in higher-yielding assets. As per provisional data, FIIs were net sellers to the tune of Rs 732 crore on Monday (5 March 2007), the day when the Sensex had tumbled 471 points. FIIs were net buyers to the tune of Rs 324.90 crore on Friday (2 March 2007), the day when the Sensex had lost 273 points. Today recovery was not supported by the market-breadth. Against 1,465 shares declining on BSE, 1,105 shares declined. Just 50 shares were unchanged. Losers outpaced gainers by a ratio of 1.32:1. The BSE Small-Cap Index lost 11.23 points (0.18%), to settle at 6,259.52. BSE Mid-Cap Index rose 25.05 points (0.48%), to 5,219.45. Among sectoral indices, BSE IT Index was the top gainer in percentage terms. It surged 231.64 points (4.9%), to 4,961.94. The BSE Oil & Gas Index surged 131.25 points (2.2%), to 6,067.22. The banking benchmark, BSE Bankex, advanced 132.24 points (2.1%), to 6,353.28. Some indices did decline. The BSE Metal Index dropped 34.37 points (0.4%), to 8,002.12. The BSE FMCG Index shed 1.73 points (0.1%), to 1,699.63. Wipro led the rally in IT shares. The Wipro stock jumped 8% to Rs 582. IT bellwether Infosys gained 6% to Rs 2130, Satyam Computer gained 5% to Rs 435.50 and TCS advanced 3% to Rs 1198. The recent easing of the rupee triggered renewed buying for IT shares. The rupee’s fall will ease pressure on their profit-margins. The IT sector derives a lion’s share of its revenue in dollars. In early trade, the Indian rupee was at 44.550/560 per dollar, extending its move off Monday's trough of 44.695, the lowest since 21 December 2006. It had closed at 44.625/640 on Monday. Reliance Industries (RIL) rose 3.5% to Rs 1304.05. The stock gained on bargain-hunting after a recent steep fall in the counter. RIL enjoys 11.1% weightage in the BSE Sensex. ICICI Bank surged 4% to Rs 854. The stock enjoys 9.3% weightage in the barometer Sensex. ICICI Bank said on Saturday (2 March 2007) it plans to transfer investments in four subsidiaries to a new wholly-owned unit, ICICI Holdings, and may list the unit next year. Cement shares came off the lower level in volatile trade. ACC surged 5.9% to Rs 861.50, Grasim gained 1.4% to Rs 2133 and Gujarat Ambuja Cements gained 1.7% to Rs 113.80. Steel shares recovered from an intra-day decline. State-run Steel Authority of India advanced 1.2% to Rs 98.20, off the session’s low of Rs 91.50. Tata Steel ended flat at Rs 421, off the session’s low of Rs 404.55. Steel and cement shares had declined over the past few days with the government taking steps to rein in prices to combat inflation. Steel makers on Monday decided to rollback Rs 300 - Rs 700 per tonne price hike in reinforced steel. Producers have also agreed to cut prices of hot rolled coils by Rs 500 a tonne. At least two steel makers, Essar Steel and Tata Steel, had raised the price of hot rolled coils by Rs 1,000 per tonne on 1 March 2007, in line with international prices. However, cement makers refused to roll-back a price hike, executed post-Budget, following an increase in excise duty on cement. Bharti Airtel gained 4.7% to Rs 724. The near-term trigger for the scrip is the number of new subscriptions for February 2007. Bharti Airtel has 5.8% weightage in the Sensex. L&T rose 3% to Rs 1427. The stock rose on bargain-hunting after a recent steep drop. L&T has benefited from the government’s thrust on infrastructure in the Union Budget for the next fiscal. NTPC dropped nearly 3% to Rs 132.80. The board of NTPC approved a proposal for the company's foray into nuclear power generation. Ashok Leyland jumped 5% to Rs 38.50. The company said on Tuesday vehicle sales in February rose 33% to 8,036 units from 6,038 units a year ago. Domestic sales rose 33% to 7,353 units from 5,517 units a year earlier, while exports climbed 31% to 683 from 521 units. Aban Offshore rose 2% to Rs 1815. The company said on Tuesday its subsidiary had secured a drilling contract worth $123 million from affiliates of Canada's Addax Petroleum and China's Sinopec. Gujarat Narmada Valley Fertilizers rose nearly 2% to Rs 95.70. As per reports, the company plans to invest Rs 750 crore in 2007/08 to convert its urea plant feedstock to natural gas, in order to improve efficiency. Hotel Leelaventure lost nearly 3% to Rs 52. The company said on Tuesday its board would meet on 14 March 2007, to consider raising up to $110 million through various means, including foreign currency convertible bonds (FCCBs). Gemini Communication gained 0.3% to Rs 370. The company said on Tuesday it had bagged an order worth Rs 75 crore from a state utility for computerising its collection centres. Orchid Chemicals was volatile. The stock lost 0.3% to Rs 232. It staged a strong intra-day rebound from a 12.3% fall. The company today said its board had forfeited 10% of the share price amount paid by R Vijayalakshmi (promoter) and Dr M R Girinath (promoter group), aggregating to Rs 8.05 crore, on account of the non-conversion of the 35,60,000 share warrants into equity within the stipulated 18-months from the date of their allotment. Micro Inks lost 35% to Rs 320. The company today reported a net loss of Rs 16.89 crore in the December 2006 quarter compared to a net profit of Rs 16.07 crore in the December 2005 quarter. Total income for the December 2006 quarter was flat at Rs 242.85 crore (Rs 242.26 crore). Vivimed Labs lost 0.7% to Rs 178.20. The company today said it has been approved as a global supplier to L'Oreal of France. Software firm Hexaware Technologies rose 5.1% to Rs 152.65 after 2.5 million shares, or 1.9% of the share capital, changed hands in a block deal on the BSE at Rs 148. The major gainers among side counters were UTV Software (up 14.8% to Rs 281), MM Forgings (up 13.9% to Rs 170.90), Nalco Chemicals (up 13.7% to Rs 749), Rainbow Papers (up 13% to Rs 88.75), Gwalior Chemicals (up 12.9% to Rs 56.30), Automotive Axles (up 9.9% to Rs 599), GMM Pfaudler (up 9% to Rs 123.40), Rolta India (up 8.6% to Rs 307.50), Glenmark Pharma (up 8% to Rs 545.70), and PTC India (up 8% to Rs 58.80). Trading on the bourses has been extended by 45 minutes till 16:15 IST due to sun outage. The extended trading hours are till 19 March 2007. Indian stocks had tumbled in the last few days due to a sell-off in global markets, and also due to disappointment from Union Budget 2007-08 of 28 February 2007. The fall was accentuated as margin calls were triggered. The Sensex had tumbled 541 points on Budget day itself. The market had recovered the next day (on 1 March 2007) on the back of a rally in IT shares under the reckoning that their earnings will be impacted only to a small extent following an increase in tax in the Budget. The Sensex had surged 221 points, to 13,159.55 on 1 March 2007. However, a sell-off had gripped the bourses again, which saw the Sensex hurtle to 12,415.04 on 5 March 2007. While there was no cut in the 10% corporate surcharge which the market was expecting, the dividend distribution tax was raised to 15% from 12.5%. The Budget also raised direct/indirect taxes for cement, construction and IT sectors. A section of the market believes that the current fall offers a good buying opportunity for long-term investors. Deutsch Bank in a post-Budget report states that Bhel, Infosys, Punjab National Bank and Grasim (a high-risk, high-return play) are its top picks. UBS shares a similar view. ‘Post the recent correction, relative valuations don’t appear as expensive as they used to be. India is now the fourth most expensive market in Asia compared to the most expensive status that it used to have about a month back’, it states in its post-Budget report. At current levels, the Sensex trades at 15.8 times 1-year forward EPS – an 8% premium over the long-term average of 14.6, the report adds.[With inputs from the Internet]
My Addition:
Today Premier Explosives did well. So Invest on all the companies which are into Defence sector like BHEL, Areva TD, Rolta Ltd, Premier Explosives Ltd.I have confirmed news that Premier Explosives will get an order within this month.
Soon the housing companies will do well as the price of houses can be increased to make for the loss of benefits of some sections of IT Act. The real estate companies have indirectly indicated an increase of the price of flats, apartments in the days to come if the goverment continued with its aim to withdraw those sections of IT Act. Besides the Land Value of those companies have risen by many fold in the last few months which gives good valuation to them. I have news from sources close to me that the last quarter results of Garnet Construction Ltd will be excellent. One thing for Garnet Construction is certain: it is coming up with an Preference Issue....But I am yet to get the confirmed news on the Preferenced Issue price. Some quarters say that the preference issue price will be around Rs.150--but confirmed news from my personal sources is awaited.
Besides, a reputed Bombay-bsed PMS firm has sent the following news item to its clients: *Rollback of withdrawal of Sec 80 IB and Sec 80 IA is on the cards aver market pundits. So look out for construction and real estate scrips on decline. * The dual excise policy in cement reminds one of the controlled pricing in cement and the rampant black marketing! * BHEL bonus may be followed by a split in face value.
I could not upload the site due to some Internet related problems. In future if u do not find updates on this blog or Sumanspeaks group please note that it may be due to myh some serious pre-occupation with some works or may be due to some technical failures in the Internet front. Hence do not panic and hold on to ur positions. Most of the stocks which I have recommended could be averaged out if the price stabilises.
More in the following postings......
Best wishes,
Suman Mukherjee
India.