Positive Views on Suzlon Energy
Suzlon has been seeing order inflow from India and abroad, mainly from Europe and US. After REpower 100% squeeze out the management has indicated that they have cash of about USD 1.5 billion, this quite comforting on the net debt of about Rs 12,000-12,500 crore. Suzlon, is a USD 5 billion top-line company and the long-term prospects are very good. In fact the company needs to improve its profitability.
Probably Q3 may not be able to give much comfort and not much can be expected from Q4. But going forward, FY13 will start giving comfort on the bottom-line. USD 5 billion top-line is quite comforting with Rs 25,000 crore top-line. Taking these into account, positive views are held on Suzlon. Suzlon can give a return of 40-45% in next one year.
*To get the password for buy calls, please subscribe to this blog. You will receive the password in next email to you*Record Date – Radhe Developers Consolidation of Shares
Radhe Developers India Ltd has informed BSE that February 16, 2012 has been fixed as the Record Date for the purpose of Consolidation of Shares Capital of the Company i.e. Conversion of Equity Shares of face value of Re. 1/- each into face value of Rs. 10/- each.
*To get the password for buy calls, please subscribe to this blog. You will receive the password in next email to you*- Record date – Cimmco Birla reduction & consolidation of share capital
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Record Date – Fame India Rights Issue
Fame India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 13, 2012 have approved January 25, 2012 to be the Record Date for the purpose of deciding the shareholders who are eligible to apply for Equity Shares on rights basis in the proposed Issue.
The company proposes to issue 2,02,90,508 equity shares on a rights basis to its existing equity shareholders aggregating to approximately Rs.8928 lakhs. The rights issue ratio is 58 equity shares for every 100 equity shares held by the shareholders as on the record date.
The company is issuing shares at a price of Rs.44 (inclusive of premium of Rs.34) per equity share. The face value per equity share is Rs.10. The rights issue opens for subscription on Tuesday – February 7, 2012 and closes for subscription on Tuesday – February 21, 2012. The Fame India Ltd stock closed the day at Rs.49.15, up by Rs.0.95 or 1.97%. The stock hit an intraday high of Rs.49.90 and low of Rs.47.25. The total traded quantity was 4113 compared to 2 week average of 55179.
*To get the password for buy calls, please subscribe to this blog. You will receive the password in next email to you*- Record Date – Bajaj Hind Up Rights Issue Record Date Fixed
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Record Date – Nimbus Industries Stock Split
Nimbus Industries Ltd has informed BSE that January 30, 2012 has been fixed as the Record Date for the purpose of sub-division / stock spilt of Rs. 10/- (Rupees Ten) per share of the Company into the shares of Rs. 5/- (Rupees Five) each. Nimbus Industries has been engaged in trading of tea and other miscellaneous activities.
The BSE group ‘T’ stock of face value Rs 10 has touched a 52 week high of Rs 101.00 on 22-Dec-2011 and a 52 week low of Rs 45.00 on 18-Oct-2011. Last one week high and low of the scrip stood at Rs 97.75 and Rs 85.75 respectively. The current market cap of the company is Rs 33.11 crore. The promoters holding in the company stood at 17.20% while Non-Institutions held 82.79% stake.
*To get the password for buy calls, please subscribe to this blog. You will receive the password in next email to you*- Record Date – Sterlite Industries Bonus Issue and Stock Split
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Suzlon Energy surges 4.7% in 2 days on new orders
The Suzlon Energy stock has surged 4.7% in two trading sessions from Rs 22.15 on Wednesday, 18 January 2012, after the company announced before trading hours on Thursday, 19 January 2012 that its subsidiary — REpower Systems SE secured cumulative orders of 151 megawatts across Europe and North America from 22 October 2011 to 18 January 2012. The stock had gained 2.7% to settle at Rs 22.75 on Thursday, 19 January 2012.
Suzlon Energy said the cumulative orders secured by REpower Systems SE over the past three months cover various firm orders across Austria, Belgium, Canada, France, Germany, UK and the USA. The projects include several wind farms in Germany, featuring REpower’s latest turbine models 3.4M104 and 3.2M114, with 3.4 megawatts (MW) and 3.2 MW of rated power, respectively. Other orders with turbines of the MM92 or MM82 type are destined for wind farms in Germany, UK, France, Belgium and the USA, Suzlon said in a statement.
*To get the password for buy calls, please subscribe to this blog. You will receive the password in next email to you*Page Industries – Dalal Street Hot Chips Buy Call
Page Industries is engaged in the manufacture and sale of inner wear under the brand name Jockey. The brand commands premium pricing in the inner wear segment for men. The company has received an extension of the license agreement with Jockey to manufacture and distribute the brand in India till 2030. The extension of the license for close to 20 years indicates strong revenue visibility for the company going forward. It has a market share of around 24 per cent in the men’s category and around 12 per cent in the women’s inner wear market. Its presence in the premium category gives the company an edge over its peers. The average market price for each item is anything between `100 and `150. The company is likely to keep up with its decent performance going forward. One can look at the stock from a medium term perspective.
*To get the password for buy calls, please subscribe to this blog. You will receive the password in next email to you*- Dalal Street Hot Chips Buy Calls – Cox & Kings
- Dalal Street Low Priced Scrip – Garden Silk Mills
- Buy Page Industries for Medium Term
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- Dalal Street Hot Chips Buy Calls – IPCA Laboratories
- Dalal Street Choice Scrip Buy Call – Nestle India
- Dalal Street Choice Scrip Buy Call – Hyderabad Industries
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Reliance Industries (Below Rs 700) – Company with Rs 300 per share cash
For a company sitting on Rs 300 in hard cash per share, a share price of Rs 700 means investors are getting a share of its business for Rs 400.
Potential reasons of Reliance Industries crashing below Rs. 700 mark.
- expected drop in net profits by 20 percent in the third quarter of the current fiscal
- company is unlikely to benefit from rupee depreciation in this quarter as Reliance locks in currency at the time of booking crude purchases and product exports. This takes place a few months prior to deliveries
- Lower gas production
Reliance was sitting on a cash pile of Rs 61,490 crore as on 30 September 2011. Add to this the $7.2 billion the company received from BP, and the cash rises to Rs 97,000 crore. Analysts expects the company to generate Rs 88,000 crore in gross cash flows over the next two years. Compared to this the stock currently trades at a market capitalisation of Rs 2,26,428 crore.
In other words the company is sitting on nearly Rs 300 per share of cash. The market is valuing Reliance’s business – with further cash flows of Rs 88,000 crore over the next two years – at just Rs 400 today.
Looked at from a valuation perspective two years hence (2013-14), the market is paying Rs 700 today for a company that will have 85 percent of its share value in cash.
Now you decide whether to buy this stock or leave it.
*To get the password for buy calls, please subscribe to this blog. You will receive the password in next email to you*- Reliance Industries acquires Infotel for $1B
- Reliance to acquire Shale gas stake
- Reliance to Enter Financial Services
