Tuesday, January 15, 2008

Don't be afraid on Today's Fall............Buy Call on JCT Ltd........

As I have written in my last post about market movement. Corrections will come and go

Actually these are buying time if someone has missed the Bus...

Well, as I have never given a speculative buy call, and one should also remember that as I pick stocks early they takes time to mature and hence while buying stocks which I have recomended be ready to hold for a year or two.
Well, it may also happen that the entire story do not materialse and hence stock do not at all move or rather tank.....so be ready for such Mishaps as well.....I am writing this because that has happened with my calls.
I have gone wrong horribly at times.......Do your own diligence , search the level of comfort and then buy.....again I say, when I recomends stocks they are in a very very nascent stage as the story is just unfolding and in between anything can happen!


I am giving a buy call on JCT Ltd a Textile comp
The story of Wind Mill is developing and it will take time to mature.I would like my viewers to diggin this company and tell me what is happening at this counter and if there is another trigger apart from this.
I hope and expect that readers will give me more feedbacks as well along with querying on any stocks, I hope it would be not a one way affair....Like some Reports, Annual Reports any news that I may have missed.....which u have read somewhere or heard somewhere (that includes any targets)and whether I am not in Know.....that goes for any stocks , that includes even which I have not covered here.....
I am a learner and would not like to remain a prejudice mind......
Not neccesary to give whole text but summary would be suffice....
Regards,
Rajeev

8 comments:

  1. NEW DELHI: Samir Thapar-led JCT is taking its first major diversification step beyond the traditional textile and filament yarn businesses. The group is getting into a 50:50 joint venture with US-listed Dakshidin Corp, which specialises in low-wind speed windmills. The venture would mark JCT’s entry into wind energy on a long-term basis.

    Initially, the windmill-based water-pumping products would be imported from Dakshidin’s Chinese plant, but the venture is already studying ways of setting up its own manufacturing facility in the country. Dakshidin, producers of the world’s most powerful water-pumping windmill, is also planning to bring in its wind power generating products by mid-2008, which would then allow the Indian venture to get into small wind energy projects.

    Vice-chairman and managing director of JCT, Samir Thapar, said: “We have been looking at various businesses and finally decided on renewable energy where our focus would be on wind energy.” He said the USP of the product would be its ability to operate at much lower wind speeds of even 4 miles per hour, as against conventional windmills which require wind speed of 15 miles per hour. “Such high wind speeds are available in some particular regions within India and in just about 20% of the world. Our products can reach out to a much larger market,” he added.

    Which means JCT would not compete with large windmill producers like Suzlon. The exact business model to be followed with the new products is yet to be frozen, but it is likely to involve separate ventures with farmers for installing and operating the windmills.

    Renewable energy sources such as wind, solar and water (hydro) are increasingly catching investors’ fancy with alternative forms of energy. With crude trading at historic highs and increasing concerns of pollution from conventional sources of energy, more and more corporates are jumping on to this bandwagon.

    The Rs 550-crore textile and nylon filament yarn maker, JCT, is part of the MM Thapar Group, one of the four sons of the late group founder Karamchand Thapar. While other groups of the former diversified Thapar family had been exploring new business avenues, JCT has been largely confined to textiles. This particular venture is part of the broader move for diversification.
    The exact financial and technical feasibility for the manufacturing set-up and the equity structure are going to be finalised within the next two months. While the initial MoU for the venture has been signed by JCT, it is possible that some privately-held companies may pitch in with investments for the 50% stake in the venture.

    JCT has held some preliminary discussions with the state government of Punjab for installing windmills on an experimental basis. This would be taken forward in other states as well, given the fact that the high performance water pumping windmills can be used in arid and desert land such as those in Rajasthan as also other parts of the country.

    ReplyDelete
  2. Hi KPR,
    That is wonderful information you have given to our blog.
    Though I can say that only after reading this article has I given a call on JCT Ltd.
    I just wrote a small sentence about JCT Ltd going in for Windmill.But I have gone through it in past couple of weeks.
    But am glad to see that you have reverted with a feedback and I am happy to note that.I wants this type of passion for any of my picks or any stocks you find out...
    Great work.
    One more revealation.One big operator has started buying JCT Ltd in small lots.So those who wants to buy should start buying now instead of watching its movement.I must write here to you all that when I recomend a stock here just buy 20% atleast to getin...as it can run suddenly and u all may feel missing it....

    ReplyDelete
  3. This comment has been removed by the author.

    ReplyDelete
  4. Source: fibre2fashion.com

    India : JCT signs MOU with Dakshidin Corporation
    December 24, 2007

    JCT Ltd has informed that Dakshidin Corporation producers of the worlds most powerful water pumping windmill, and the Company jointly announce that they have signed a memorandum of understanding for distribution and manufacturing capabilities of Dakshidin's RESTEC windmills in India.

    The Company has a strong position and efficient distribution within India and abroad.

    In addition to the distribution of Restec's windmills, the project aims to eventually manufacture the products as well.

    "JCT Ltd is committed to helping solve India's water crisis," stated Samir Thapar, Vice-Chairman and Managing Director of the Company.


    JCT Ltd

    ReplyDelete
  5. This comment has been removed by the author.

    ReplyDelete
  6. dear nakul,
    i hav read ur cal on jct.please could u give the targets for this within a years timeframe
    regds rashmi

    ReplyDelete
  7. Hi Rashmi,
    I use to write at mmb as nakul.
    I use to write in the name of my Son ,Nakul.
    But I am here ,as Rajeev,I have started this blog in my own name.
    I hope next time u will address me with my name...Rajeev...Thanks.
    Well, JCT Ltd.....targets!Rashmi, do you think I have to give targets for JCT Ltd?My old calls are enough proof what my recomendation use to become after a year or two...
    I almost never give any targets.Most often I write as,is a next multibagger...not more then that.....Take your own call....

    ReplyDelete
  8. i was mislead by reading the comments thinking its just a windmill story for water pumping. but looks like you can use this for water purifier also which will cool value add.
    here is some more info on the foreign partner which can give an idea on sort of market valuation they are expecting if everything goes fine.


    On March 23, 2006 Dakshidin purchased 100% of RESTEC International Inc. The RESTEC Mark 10 Windmill is the first product being introduced by the Company.

    PRODUCT INFORMATION
    The RESTEC Mark 10 is able to pump more water at any wind speed, at any depth at a lower cost than any other Windmill in the world!

    At the beginning of the 20th century there were approximately 25,000,000 people living in western North America. There were about 6,000,000 windmills in use to supply water for drinking, irrigation, livestock etc. At that time there were over 100 companies manufacturing windmills.

    Today with approximately 1 billion people in a situation similar to that era of pre-electricity water needs – the market for windmills is thought to be 250,000,000. If we compete with the few windmill manufacturers that exist today with inferior windmills and only capture 0.8% (eight tenth of one percent) of this market – our market share would be 2,000,000 windmills! Our revenue would be $40,000,000,000 (Forty billion)!



    On July 12, 2007 Dakshidin Corporation acquired a controlling interest in Kensam Echo-Tech Services Co. Ltd. in the province of Yunnan, China.

    This strategic acquisition will allow the Company to effectively market the windmills in China through a network that has been built up over the past 7 years. Through Kensam, the Company has been given the rights to participate in a 40 megawatt wind-farm that has already been approved and an agreement has been reached with the People’s Republic of China (PRC) to purchase all electricity at a predetermined price.

    Dakshidin is currently working with two groups to add even more functionality to the windmill series. The first group has developed a system of Reverse Osmosis using only the windmill as both power and the source of water. Imagine being able to draw seawater at the coastlines anywhere around the world and purifying it - totally off-grid. The second group is using an already existing Flash Distillation technology and adapting it to the RESTEC Mark 10 windmills. Fresh water will be available in abundance for human and animal consumption as well as to irrigate crops.

    DAKSHIDIN STRONG POINTS

    Tight float
    Strong management
    Excellent contacts around the world
    Timely product as it covers Green Energy, Sustainable, Wind and Water
    A new requirement of many funds is that they must own a certain percentage of companies like this
    Market - $40 Billion potential market share
    Full marketing launch of the windmills begins mid August 2007 coupled with an Investor Relations campaign



    There is a water crisis worldwide and this is the best, environmentally friendly solution. It is a great investment opportunity while helping to preserve our planet.

    ReplyDelete