Sunday, January 31, 2010

Tata Chem ..I gave a call on 9th Jan 2010......

I remember I gave a call on Tata Chem in this month itself and wrote that I am seeing a Tata Power type of rerun in this counter.
My call gets vindicated when I saw today that Tata Chem NP has DOUBLED.....

Tata Chem profit doubles to Rs 221 cr on higher volumes ....
BTW, Petron Eng my old call at Rs 169 has made a new high on Fri at Rs .254....and it is making a new high when market is down......

Our Bureau MUMBAI

TATA Chemicals, on Friday, saw its net profit for the December quarter more than double on the back of higher volumes and a stable price environment.

The Tata Group company, which has been leading the conglomerate’s efforts to bring out innovative products for the mass market, said its net profit in the quarter totalled Rs 221 crore, compared with Rs 91 crore last year.

However, the company’s sales fell 28% to Rs 2,622 crore during the period.

Tata Chemicals said its net profit for the quarter includes about Rs 12 crore from crop protection firm Rallis India, which became a subsidiary of the company in November.

“During the period, the company witnessed demand growth in domestic as well as in international markets. However, there is a marginal pressure on the margins of some products, such as phosphatic fertilisers, due to a fall in global prices,” managing director RK Mukundan said in a statement.

Tata Chemicals’ research and development division played a major role in the group’s December launch of ‘Tata Swach’, a low-cost water purifier, that could likely initiate a price war in the drinking water segment, currently dominated by consumer goods giants such as Hindustan Unilever and Eureka Forbes.

Tata Chemicals owns 50.06% equity in Rallis. The Mumbai-based company was cautious last year with its expansion plan due to global demand slump.

Industry growing 20% annually ANIMATION’S NEW AVATAR .....

Industry growing 20% annually ANIMATION’S NEW AVATAR

While tracing the animation and 3D industry,
Ashish Agashe & Nikhil Menon chance upon an Indian connection with the blockbuster Avatar

For the generations that grew up reading Phantom and Mandrake comics during lazy afternoons pre-1980, animated shows on television changed entertainment forever. Comics could never match the lure of He-Man, Spiderman and Giant Robot on Doordarshan’s noontime show during summer vacations. Then, cable TV threw open the doors to an ocean of animated shows and films. But one thing remained constant—India consumed what the West produced.

Then the tables turned. Even for the West, animation was expensive to produce in the volumes demanded by viewers. Outsourcing was the obvious answer. The easy availability of technically competent, low-cost talent in India encouraged studios in North America, western Europe and Japan to recognise their Indian counterparts as credible organisations that could deliver the goods. PricewaterhouseCoopers’s leader for media and entertainment, Timmy Kandhari recalls, “Indian companies joined the bandwagon after computer-aided animation came in and made best use of the software available.” In no time at all, the West was starting to consume content developed in India.

AK Madhavan, CEO of Crest Animation, one of the first studios to get into the outsourced business, estimates that the outsourced work done by Indian studios adds up to $200 million a year. Within the media and entertainment space, animation has outperformed its peers in recent history, growing at 20% in 2008 to become a Rs 1,560 crore industry. Mumbai-based Crest Animation started off producing advertising commercials in 1990. It got into CGI animation ten years later and today, has over 200 hours of content to its credit. The DE Shaw-funded company also acquired a firm in the US in 2000, which helped them get a foot in the door in the Americas.

The US has always been Indian animation’s big market. P Jayakumar, CEO of Toonz Animation, says that roughly 40% of the industry’s business comes from the US, and another 35-40% from all over Europe. “Starting 2005, Wall Street firms had pumped $3 billion into Hollywood but funding stopped in 2008. In spite of that, Indian animation grew at a healthy 20% last year and with work coming up, the prospects are good,” he says. Some of the work done by Toonz includes Dragonlance, a movie based on ‘Dungeons and Dragons’ and a 26-episode TV series for BBC, based on X-men.

One of the earliest entrants in the VFX segment, which entails digitally creating scenes like a mass fire, cricket stadium with crowd, was Prime Focus, which is listed on London Stock Exchange and Indian bourses. Their biggest project so far has been James Cameron’s cult hit ‘Avatar’. Namit Malhotra, founder and global CEO of Prime Focus discloses that they have bagged the contract to work on one more big Hollywood project.

VFX is also playing a growing role in mainstream live action movies. Prime Focus has worked on films like 3 Idiots, Blue, Wanted, Paa, etc. “These days, Indian movie makers also want to give songs or background sets special treatment, which is good for our business,” Malhotra avers. However, he adds, India’s supremacy in the outsourced animation/VFX market is increasingly facing competition from Malaysia and Korea.

Almost everybody agrees that the domestic market is the ‘next big opportunity’ both for animation as well as VFX firms. The Indian appetite for animation is increasing very fast but companies haven’t been able to capitalise on it yet. Toonz made ‘Hanuman’ in 2004, which became the first Indian animated feature film, an event which animation guru Ram Mohan describes as watershed. Yashraj Films followed up with Roadside Romeo (RR) which was not so successful at the box office. Coming up ahead are a slew of animation films like UTV’s Arjun, Karan Johar’s Kuchi Kuchi Hota Hai, etc. Apart from the numerous start up ventures, bigger corporates like Tata and Reliance have also seen value in entering this space.

Tata Elxsi’s Visual Computing Labs (VCL), which worked on RR and is in the process of finishing Arjun, spotted the importance of Indian markets early. It continues to get 70% of its revenues from domestic projects. VCL’s creative director Pankaj Khandpur says, “Animation has a higher gestation period but is scaleable while VFX with its quick turnaround time is good for routine business.”

The way ahead for Indian firms, Khandpur says, is creating products of their own for a global audience. “Thanks to the outsourcing work, we have arrived when it comes to the craft of animation, but sadly, we haven’t mastered the art yet. We lack the prowess to write a movie, generate international concepts and have aesthetics which will appeal to a global audience.”



VIEWING is all set to get a new 3D avatar, with every electronic and technology manufacturer gearing up to enhance experiences and entice buyers. If those sprinting ahead in the race to deliver this in-depth content to the maximum Indian consumers seem to be sporting bodies, they are being ably backed up in their endeavour by hardware. Not that it’s surprising, as the 1984 Asian Games in Delhi not only revolutionised India’s media and entertainment space by bringing colour to break the black & white monotony of the lone broadcaster and then its monopoly.

Now, the promise of 3D has the Indian Premier League pipping the Commonwealth Games to the viewing post by announcing that it will become the first sporting body in the world to telecast a cricket match in 3D this year to deliver “a significantly superior fan experience”, as their spokesperson put it. If there is a chance of making cricket a 3D experience for Indians, electronic companies will not lag behind on delivering hardware. Samsung is coming out with its 3D TV in the second quarter of 2010 while rival Sony has also declared its intention of hitting the market this year. Cinema exhibitors are ramping up their 3D capacities as well.

The gamechanger for this “immersive viewing experience” via 3D stereoscopic content is, of course, James Cameron's ‘Avatar’, that raked in over $1.8 billion in two months from besotted audiences and prompted all stakeholders in the 3D technology to rejig their plans. The result is visible: at least two computer majors have already launched 3D notebooks, Discovery has announced a 24-hr 3D channel in the US while the TVmakers have drawn the 3D finishing line at Q2 of 2010.

Broadly, the technology, which is not new, involves tweaking with the screen, the projector and wearing a pair of glasses to watch the images. The polarised screen allows two layers of images, one each for the left and the right eye due to which the depth perception increases. A 3D TV is expected to cost upwards of Rs 1 lakh while the laptop manufacturers are pegging an incremental pricing of around Rs 4,000 and it takes around Rs 40 lakh to make a regular movie hall screen compatible for 3D.

So, what does this hold for India, both at the end of consumers as well as for our companies who stand to benefit directly or indirectly? The Indian Premier League is set to become the first sporting body in the world to telecast a cricket match live in 3D this year, even as TV manufacturers gear up to hit the market with their new sets in the second quarter of 2010. Theatres, too, are stepping up their 3D capacities.

As a natural fallout of the surge in hardware offerings and increasing appetite, we will see an upsurge in content. The Mumbai-based Crest Animation, which is set to release its first 3D stereo film ‘Alpha and Omega’ globally in October, is set to announce its plans for a 3D film exclusively aimed at Indian audiences. “We see a geometric progression in the 3D market and hence, are getting into an end-to-end production in India by ourselves. I can only say that our Indian film will be beyond mythology and animals,” says Crest’s CEO AK Madhavan.

“Avatar has changed a lot of perceptions. Sometimes, you need a movie like that to change the sensibilities. It is certainly a technology for the future and considering that, I am sure now everybody will start studying the market for 3D,” says Timmy Kandhari, PricewaterhouseCoopers’ leader for the media and entertainment practice.

VN Dhoot, chairman of Videocon, claims that his company has already developed 3D televisions at its R&D centre in Rome.

Avatar changed the game

THEacquisition of the R&D facility of Thomson some years ago gave access to new technologies that the company was already was developing and we further worked on it. We will launch our TVs across the globe as soon as competitors decide to do so. I expect that to happen in the middle of 2011,” says Dhoot.

HK Seo , vice president, sales and marketing, Samsung India says globally his firm is looking at selling two million 3D TV units this year while in India, their efforts will be concentrated on creating the market for this premium category. Realising the constraints posed by the lack of content, Samsung will come out with a technology that renders 2D images into 3D at the push of a button. Beyond this, the South Korean company has also gone into an “exclusive global partnership with DreamWorks Animation and Technicolor to create a comprehensive eco system to make 3D entertainment a reality in consumers’ homes,” Seo says.

Sony India’s general manager, marketing Takakiyo Fujita also claimed that 2D content can be viewed on a 3D TV but refrained from commenting on the Indian market, saying it is still in its nascency.

On the personal gadgetry front, Acer has already taken the lead by launching India’s first 3D-enabled notebook. “Consumers want to feel reality, get as close to it,” says Acer’s CMO for India S Rajendran. Post-Avatar, the most exciting area for 3D, for obvious reasons, is movies. At least ten global releases, including Crest’s A&O, are lined up for release this year and the last three months have already witnessed a 100% jump in the number of 3D compatible screens in the country to 50.

“Avatar has really been the game changer here. We are witnessing a lot of appetite for 3D and I see the number of screens going up to 100 by this September,” says an extremely bullish CEO of Reliance Media-Works, Anil Arjun. Looking at the market, the company has already tied-up with a LA-based company to convert already existing 2D properties into 3D. “To start with, our producers can start looking at parallel releases on both 2D and 3D formats,” he says about the Indian market. Dhilin Mehta, managing director of Shree Ashtavinayak Cine Vision, which made the successful ‘Jab We Met’, amongst other movies, says, “We are currently working with a few leading companies and consultancies to develop a cost efficient solution to capitalise on this growing trend.”

Director Rajkumar Hirani, who is flying high on the success of ‘3 Idiots’, says to start with 3D films will attract people due to the format but after a while success will depend only on content. “Such films need gags that are 3D driven and hence, I think it is a totally different ball game,” he adds.

Hirani had a word of advice for aspiring Indian animation movie directors : create something original. “I do not get driven by mythological characters, it’s a very boring thought. One needs to create something original...(like) Finding Nemo or Toy Story.” In an e-mail reply on the prospect it sees for 3D globally and in India, a spokesperson for Warner Brothers, USA says, “We are not ready yet to speak about our future plans for 3D at this time. We most likely will be in the very near future.”

IPL’s plunge into 3D has surprised many but the management has taken this “rather audacious” decision to “build its brand” and “enhance the viewing features for fans at home and in the stadium,” says an IPL spokesperson.

Apart from the backend opportunity which Reliance MediaWorks is eyeing, there are many Indian Visual Effects (VFX) firms like Tata Elxsi and Prime Focus who are all set to benefit as the appetite of global audiences increases for a superior visual experience offered by 3D. “In India, it is still the beginning for 3D. But worldover, producers have realised that they can achieve the critical mass due to the presence of theatres. So, the real guys benefitting for now will be our VFX studios who will be in demand,” says Kandhari.

Prime Focus, which had worked on Avatar, is already working on one more Hollywood project, though its founder and global CEO Namit Malhotra did not disclose who he is working with.

Technology players too are gearing up. Nvidia, which has a centre in Pune and has worked on Avatar as well, controls over 91% of the 3D applications market. “Our ultimate aim is solve the most complex of the visual computing problems and 3D is just a part of it,” says Prasad Phadke, who heads the professional solutions business at Nvidia.


Breathing life into drawings
ANOTHER two Avatars and we’ll have truly arrived,” says an optimistic Kuldeep Pareek. Pareek is VP sales of Maya Academy of Advanced Cinematics (MAAC). His jubilance can be attributed to the rising numbers of students flocking to learn animation after the success of Avatar. And Pareek is not the only one celebrating.

Arena, a division of Aptech Computer Education was called Arena Multimedia till some years ago with a focus on vocational design courses. When everybody discovered animation and VFX, it quickly rebranded itself as Arena Animation.

The growth of Indian animation has given an impetus to VFX and animation courses in the country. Pareek estimates that educating animators is currently a Rs 500-crore market.

“Animation grew at over 20% even during the recession and hence, our courses continue to attract students,” says Pareek of MAAC, which started seven years back and has 70 centres.

Arena, which has been around for 15 years and operates 175 centres in India and 15 abroad serves 2.5 lakh students and registered a turnover of Rs 250 crore last year. This year is expected to be even better. “There is need for trained manpower which is crucial for the performance of the industry and it works to our advantage,” says Anuj Kacker, Arena’s chief operating officer.

Many local institutes like Pixel Perfect and ICAT of Chennai are also jostling to grab a pie of the market. Both Arena and MAAC have tied up with universities to offer industry-oriented degrees in animation. MAAC has a tie-up with the Indira Gandhi National Open University while Arena has tied up with a university in Tamil Nadu to offer BA (Animation) degrees.

Nearly all the major institutes have a presence in tier-II cities while Arena has gone a step ahead, opening Arena Points in tier-III cities. “Arena Points teach elementary web design and multimedia skills and act as ‘feeders’ to our main institutes,” Kacker says.

The year 2009 had its share of jitters for animation and VFX education sector. Enquiries and business generation was low in the months of March-May 2009 owing to fears about a global slowdown. However, interest increased as signs of normalcy returned. It reached a high towards year-end as James Cameron’s Avatar released in India. Now these educators, who teach young students to breathe life into drawings, are hoping for more good luck.

My Comments:
There are dark horses in this space which I will write othertime.But readers can give me names if they found any......Ofcourse in this post itself there are 3-4 stocks discussed...
And BTW, I have read this in todays ET......

Srei Infra board okays merger with Quippo .............

Srei Infra board okays merger with Quippo


THE BOARD of Srei Infrastructure Finance on Thursday approved amalgamation of Quippo Infrastructure Equipment Limited (Quippo) into Srei, as recommended by a group of independent advisors. The company plans to leverage the combined networth of over Rs 2,000 crore for higher capitalisation. Srei was holding close to 17 per cent in Quippo.

The Srei board also decided to capitalise some of its reserve as a part of the amalgamation scheme. It will to issue bonus shares at a ratio of 4:5. This is expected to enhance shareholder value further. The date of the merger has been fixed to be April 1, 2010 while the process will be complete by Q2, 2011-12.

The Srei board, following detailed deliberations, approved the swap ratio of three equity shares of Rs 10 each for every two equity shares of Rs 10 each.

Disclosing this at a press conference, Hemant Kanoria, chairman and managing director of Srei, said, "With the unprecedented growth that we are witnessing in the infrastructure sector we feel that this step to synergistically integrate all businesses of Srei and Quippo will enable us to grow faster and create a large infrastructure asset base. Our third quarter results have also shown a remarkable improvement, which will take a leapfrog if we augment our networth.

The bonus issue at this crucial juncture which I would call a take-off stage in infrastructure for the company would result in creating sufficient capital base to grow continuously."

My Take:
I am extremly bullish on Srei Infra from now onwards.Merging Quippo Infra is one of the reason but there are other valid reasons too.....I would like to find them out by my readers.....


Saturday, January 30, 2010

CCAP Ltd my old call on ....4th Dec Rs.85.25

I gave a call for CCAP Ltd which was also my old call from MMB days.
When I gave the call on CCAP Ltd I gave all reasons to buy it and explained it here.I am pasting my post here again......
CCAP Ltd has been  Rs 85.25 today and was in UC even when market was down.......for many days togather......
I donno, these are just calls where anyone can read and easy to understand what is going on but I am sure not many would have bought it......that is the pity.....It was very simple to assume and take a call.See that is where one needs to put money......and get return fast as well......maybe it may not happen with all such type of calls.....but still there was some story in it....

In almost 2 months stock has doubled....what fast ST return one wants from market other then this?

CCAP Ltd.....cmp Rs 41.70......


CCAP Ltd is my old call at mmb between 15-20.It is long time back and one of my reader here reminded me about it as well as CCAP was going up.

10-15 days back when I saw the price it was around 30-32 and now I am seeing the price of 41.70 and hence I decided to write it here before it shoots up more.....

The reason I had a look when it was 30-32 was that there was an open offer at Rs 80/share when the price was just 32....means when I read the annoucement the price was 32....and now it is 41.70 because the open offer is now closed......

CCAP - Open Offer :
Announcement: 7th Aug 2009...

Sumedha Fiscal Services Ltd ("Manager to the Offer") on behalf of M/s Ramayana Promoters Pvt Ltd ("Acquirer") has issued this Public Announcement ("PA") to the Equity Shareholders of CCAP Ltd ("Target Company"), pursuant to Regulation 10 & 12 & other applicable provisions as required under the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 & Subsequent amendments thereto ("Regulations").The Offer:The Acquirer is now making this open offer to the shareholders of Target Company (other than the parties to the Agreement) to acquire from them 7,14,033 fully paid up equity shares of Rs 10/- each, representing 20.00% of the subscribed equity share capital & 20.07% of the voting share capital at a price of Rs 80/- per fully paid up equity share ("Offer Price") payable in cash ("Offer or "Open Offer") in terms of Regulation 20 of the Regulations. As on the date of this PA, Target Company has 12,500 partly paid up equity shares of the face value of Rs 10/- each & the total amount of allotment money in arrear is Rs 43,000/-. The Offer Price for partly paid up equity shares shall be adjusted to the extent unpaid as per Regulation 20(10) of the Regulations.Schedule of Activities:Specified Date - August 21, 2009Date of Opening of the Offer - September 23, 2009Date of Closing of the Offer - October 12, 2009 ....

My Comments:

Well , the open offer is closed 12th Oct which was the last day.......and the stock hass started moving up because it is still below the open offer the price should atleast catchup with the open offer price.
Well, it may not always happen like that but it seems to be case here....
Before buying DD is a must.
Herein also , there is one more stock to take note of that....any guess?
Well, the stock in talk is Sumedha Fiscal (I hope readers find this name in this post )and it is a listed entity and it is the Manager of the offer and they will get good money from this type of work.So the point to be noted here is one needs to see who is the manager of the offer and if the name keeps coming with some other offers then we need to understand that the Co is having a very good name for the open offer management as generally the manager use to value the co and put a price for open offer.....
So, friends according to me Sumedha Fiscal is looking good and I have given a call at other forum in last bull run around 10 and it went on to touch something like 28.....
Sumedha Fiscal is a Calcutta base brokerage co ....
Now in very desi language I will say, ki ab Sumedha Fiscal ki janam kundali nikalo along with CCAP..........
Got it.......!

Thursday, January 28, 2010



S means Srei Infra,Simmond Marshal and Sabero Organic.
All have come with great results and still going cheap.Aries Agro my old call has also come out with great results.Readers needs to follow and buy if found good......Buying and Selling decision is YOURS....I just point them....

Updates: Quippo Infra is getting merged with Srei Infra which will add value to shareholders and creditors.That is a great development that is taking place in Srei Infra.....
One more "S" has come out with excellent result which I have recomended.It is Surana Corp ltd which is in Jwellary Business.This is the 4th "S"....
Surana Corp has posted 14.78 cr NP against 3.21 cr last year same qr.Surana Corp has an eq of 21.86 cr.Do the math yourself....Np has gone up by 360% and sales up by 514%.
I know there are many readers who use to look at many things and when they look at my pick they gets puzzled because when I recomend there is nothing to say about.But then the story unfolds slowly......and that takes time....remember this always with my call......there cannot be instant appreciation....if that happens then it is your LUCK.........

Wednesday, January 27, 2010

Great results from Spanco Ltd....

Spanco Ltd has come out with stupendeous results.....
For the qr ended Dec 09 the np went up from 1.60 cr last year to 18.96 cr this year giving an eps of 6.78 for the qr.with topline going up from 170 cr to 378 cr.
Nine months topline is now at 813 cr and hence I can assume that for whole year it will cross 1000 cr very easily.....

Sunday, January 24, 2010

Rico Auto Ltd ....My old call....

I am happy to note that my old call of Rico Auto which I gave at Rs.25.60 on 16 Nov 09 has found place in HDFC Sec Auto Ancialliary pick.
They have come out with a report on Auto Component play with 4 stocks and one is Rico Auto other being Amtek Auto, Motherson Sumi and Bharat Forge.
These call from HDFC again give me immense confidence that I am thinking in right way and in right line.Though I have no Infrastructure to get information of stocks I still am able to pick stocks which finds place lateron in wellknown houses.My picking up the stock method is raw and not a researched based, like cash flow,ROEC etc  but still coming out winner.

A Southbased analyst in his column on Monday, today, has come out with a buy call on Rico Auto for a medium term target of 40.

Friday, January 22, 2010

ADAG set to manage $2.5b Malaysian govt funds

ADAG set to manage $2.5b Malaysian govt funds
Soma Banerjee & Arun Kumar NEW DELHI
RELIANCE Capital Asset Management Company is negotiating with Malaysia to manage up to $5 billion (Rs 23,000 crore) of public and government funds, including money that is part of the national pension fund, persons aware of the development said.
Malaysia is also in talks with other global fund managers for the deal and the Anil Ambani-run company expects to win a mandate to manage around half the $5 billion that the southeast Asian nation’s government wants private asset managers to handle.
Investment arms called government-linked investment companies (GLICs) manage the funds now and they also own stakes in a number of top Malaysian companies. Such companies, called government-linked companies (GLCs), include Telekom Malaysia, automaker Proton and Malaysia Airlines. Surplus cash with some of the GLCs will also be managed by private fund managers.
“He (Mr Ambani) is looking to manage some of Malaysia’s portfolio assets. Also, some of our GLCs,” Malaysian Prime Minister Najib Razak told ET after a meeting with Mr Ambani.
“He is also interested in managing the Malaysia Employees Provident Fund which has huge savings. The company is looking at managing a substantial amount of this fund.”
Malaysia EPF, the national pension fund with about $9 billion under management, is one of the government’s main investment arms.

Govt cos dominate main Malaysia index

THE others include Khazanah Nasional, Permoddalan Nasional, Lembaga Tabung Angkatan Tentra and Lembaga Tabung Haji.
Government-linked firms account for over a third of the market value of the companies in the main index of the Bursa Malaysia stock exchange. The government is in the middle of a restructuring exercise involving the GLCs, unlocking its holdings in many of them to raise capital.

My Comments:
Anil Ambani in negotiation for managing $5 bn Malayasian Public funds.That is Rs 23,000 cr.Now why Malaysian government would like to negotiate with ADAG?Because growth is there........So imagine, if 23,000 cr comes here ......what can be the impact......still I have to write what can be the impact for Obama's stricter norms for US banks?

Wednesday, January 20, 2010

Shankar Sharma Latest...

Emerging SHANKAR SHARMA, vice-chairman and joint managing director, First Global, tells Rajesh Bhayani that while markets may correct by 15-20 per cent after the Budget, they will rebound and reach previous highs in the next 18 months. Excerpts: SHANKAR SHARMA VC & Joint MD, First Global

‘In general, small investors don’t make money from equities’

The Nifty has been going through a period of consolidation. Where do you see it in the near term?
Broadly, the market is looking good till at least the Budget. If there are some retrograde moves in the Budget, it can spoil the mood and there could be a correction of even 15-20 per cent.

Small- and mid-cap stocks have been rising recently. In the past, retail investors in these stocks have burnt their fingers. Do you think small investors have become smarter this time?

Once the market enters into a correction mode, smalland mid-cap stocks will fall just as fast as they have risen. And, the fall could also be on low volumes. Investors who do not book profit may get stuck.

How will the market perform in 2010?

The market will bounce back after the postBudget correction. The reason is India’s strong fundamentals. Last year’s crisis was a stress test in which India emerged much stronger. In 2010, the equity market will continue to give positive returns. In the next 18 months, the market may reach previous highs. ( Can anyone believe this?SS was bearish all the time and now he has taken complete U turn.I have posted his chat sometimes back where he said bearish more then 1o times...I know people says that all has freedom to speak but that doesn't give them liberty to speak anything he wish when a person comes in wiremedia and business paper ,he has certian reponsibilites towards his followers )

Given that equity penetration among retail investors is low, do you think there should be more efforts to expand the equity cult?

Retail investors should remain careful about equities. One of the important reasons why India was less affected in the crash was because of high holdings by promoters and foreign institutional investors. Retail investors own hardly 10 per cent of listed companies. Hence, erosion in their wealth was also lower. But it is said that equities give better returns in the long term.

But, small investors, in general, don’t make money from equities. A very few make big money and their success stories are spread to lure others. A large majority don’t have the expertise to do research and lose. There are very few who can do research and take the huge risk to make money in stock markets. If equity is not attractive for small investors, where should they invest?

Retail investors should put only 10 per cent of their money in equities and once this money becomes 30-40 per cent, they should book profits and bring down the equity portion. Real estate and gold are better alternatives. Within equities, auto and pharma sectors look good to me. Information technology is attractive, provided the rupee doesn’t strengthen further.

Siemens and Sesa Goa....two S....

I read two news today in BS and I am posting it here....

Sesa Goa net at Rs 827 crore

Sesa Goa said its consolidated net profit stood at Rs 827.5 crore for the quarter ended December 31, 2009. The company had a net profit of Rs 470.7 crore for the third quarter ended December 31, 2008, Sesa Goa said in a filing to the Bombay Stock Exchange.

Siemens bags Rs 2,956-crore order

Engineering major Siemens Ltd said on Tuesday a consortium of the company and Siemens AG, Germany, had won an order from the Qatar General Electricity and Water Corporation worth Rs 2,956 crore. Siemens said the contract value for the Indian arm is approximately Rs 2,491 crore.

My Comments:
Siemens bagged order of Rs 2491 cr.....That is stupendeous....$500 mn contract..a single contract!Wow! and the anamoly I read analyst giving a downgrade for Seimens.I really don't understand how they work.
I have recomended Seimens since Mar 09.I am not sure what was the price then and have recomended Siemens after that also many is evergreen share...u can't go wrong here or in Areva, Alsthom,L&T etc.....
Same is with Sesa Goa.....Net profit of Rs 827 one! that is HUGE by any standard.I remember I first recomended Sesa Goa in Mar 09 when it was just 63....

Tuesday, January 19, 2010

Power Sector....HUGE opportunity is coming......

I have come through 2 reports regarding HUGE investment sanctioned and coming on in Power Transmission and Distribution sector.One is from Prabhudhar Liladhar and second is from First Global(Yes that is Shankar Shrama's brokerage Co)....
The first reports says that they expect 1200 bn means 1,20,000 cr in power transmission and 1900 bn ,means 1,90,000 cr in distribution of power.
That is a huge investment coming up.Among that Power Grid Corp Ltd will invest 55,000 cr for upgradation of various transmission asset and setting up national Grid.
Over and above that central Governmnet is suppose to invest 50,000 cr and other 28,000 cr coming for Restructured Accelerated Power Development Reform Programme (R-APDRP) and the Rajiv Gandhi Grameen Vidhyutikaran Yojna (RGGVY) in the 11th plan period.

There is enormous scope in this sector and hence all the power Co will have ample scope to have chunck of orders.
The major Player in these sectors are
2)Areva T&D
7)Jyoti Structure
8)KEC Int
and I have been recomending the first 5 stocks since Mar 09.
Thermax also comes in power sector.
It has been a known fact that power is lost while distrubuting due to various reason and there are IT Companies which shows how the loss in distribution loss can be saved.
I have once or twice recomended KLG Systel here which is in same field.
But lately I found one more company which is making inroads in same sector.I have done my DD and have come out with a BUY call on that Co.....
The name of the company is Spanco Ltd, old Spanco Tele Ltd.There is one more co named Sparsh BPO which was demerged from Spanco Tele 2-3 yrs back and it is a pure BPO co but both are headed by erstwhile person named Kapil Puri.
I am just giving one annoucement on Spanco Ltd and rest I would like my readers to find out what is going on in Spanco Ltd....

Read on:

Patni, Spanco among 4 cos empanelled for power project
Our Bureau
Mumbai, Dec. 24,2009

Patni Computer Systems and Spanco are among the four technology companies that have been empanelled as system integrators, by the Centre for its ambitious Rs 50,000-crore plan to cut power distribution losses in the country.
With this, the four companies can now bid for State-level projects as part of the centre-funded Restructured Accelerated Power Development and Reform Programme (R-APDRP).
These companies( means Spanco Ltd and Patni Computer) join Accenture, Capgemini, CMC and others that were earlier empanelled as IT consultants for the R-APDRP project.
Out of Rs 50,000 crore, Rs 10,000 crore is expected to be spent on IT and technology, according to Mr Deepak Khosla, Patni's President for the SAARC (South Asian Association for Regional Cooperation) region.
Job scope
The scope of the IT jobs under R-APDRP include setting up data centres, disaster recovery back-ups and GIS (geographic information system) mapping, besides developing applications for reading meters, billing and collection, energy accounting and auditing and consumer grievance redressal.
Apart from Patni and Spanco, the other companies that have been empanelled in the systems integration category are the New Delhi-based United Telecom and the Chennai-based Omne Agate Systems.
Lowest bidder
Earlier this year, TCS emerged as the lowest bidder for a project worth Rs 293 crore in Madhya Pradesh, while HCL Infosystems won a project worth Rs 529 crore from the Rajasthan government.
Other States such as Chhattisgarh, Tamil Nadu, Haryana Andhra Pradesh and Bihar are yet to award State-level R-APDRP projects. "

Now coming back to Spanco Ltd, almost 80% of the stocks is held by promoters and Priv corp bodies.More and more FII's wants stake in Spanco Ltd and co has given some preferential allotment to some FII's also in last 6 months.
There is many more to diggin in Spanco Ltd.So invest in Spanco Ltd after DD....and if convinced then BUY......

Monday, January 18, 2010


I know there are some readers who must be feeling that why I sometimes gives calls which have no earnings or co still making loss.
My call like those were Bombay Dyeing and Bombay Burmah which I gave on 11th Dec 09 at Rs 408 and Rs 292 respectively.
Both are firing all cylinders and now after 1 month they are making new highs.....Bombay Dyeing today touched Rs 593 up from 408 and Bombay Burmah touched Rs 417 up from 292.
Still a very long way to go.
Same is with Stride Arcolab which has started moving up.
My old call Apcotex Ind is making new high and has almost doubled from my call of 61.It is today 115.

Friday, January 15, 2010

Textile and IT......

I am again taking stock of my picks.Yesterday ,Surya Roshni and RS Software were in 20% UC.There were buyer of 1,31,000 in Surya Roshni at the end of the day which I was able to see from the bse site and hence all chances for another 20% UC.There were buyers of 83,313 in RS Software means equal chance for RS Software for another 20% UC.Watch out for RS Software as well as Surya Roshni.
Lumax Ind too made a UC for 5% making a 52 week high of 229.I told that Lumax Ind is a stock which will move up when market will be down and hence if one is having in ones PF then he need not sell all holding.As it has already more then doubled from my recomended price of 95, one can sell 50% and keep the rest FREE....
My Textile pack of Super Spinning ,Super Sales, Suryavanshi Spinning, Suryajyoti Spinning, Suryalata Spinning all are moving.This year can be a year for Textile along with IT sector.Ofcourse Capitals Goods , Infra are the core sector without which the economy will not grow.
Textile pack is still loooking good to me and one can still take exposer here with DD.
My old call MSK Project is making new highs too.
Before I forget to write let me mention two stocks.One is my old call GSPL and another is a PSU stock, Petronet LNG.Both will gives great returns in 5 yrs times.Both looks good still to me.My old call IFB Agro and IFB Ind both are making newer highs.Lesha Energy is making new highs too at 125!
I have given call on Religare Technova Solution and Religare Enterprise.Both has started moving.Religare Technova still looks good to me.
There was a bulk deal in Jupiter Bio yesterday at Rs 96.I have not to say more on that now.
Seeing Tinplate making new highs and also seeing some houses giving buy calls on it now where as I recomended it at 45 or 62 ,not sure, that too before right.
I know when everything is moving it makes no sense to count my picks but have still dared to write them here.If someone feels the other way he needs to ignore this post.
With inflation going up there can be a CRR hike by the end of the month RBI policy and hence a correction can happen of around 1000-1500 point at that time but before that we can see 18k.

Monday, January 11, 2010

China gearing up for reduction of Carbon emmision....

eSolar strikes deal to build power plants in China
By: The Associated Press 09 Jan 2010 07:15 AM ET
BEIJING - A U.S. solar power company said Saturday it will help build a series of solar thermal power plants in China, as the world's biggest emitter of greenhouse gases tries to decrease its heavy reliance on coal, imported gas and oil.
California-based eSolar Inc. will provide Shandong Penglai Electric Power Equipment Manufacturing Co. with the technology and information to build the concentrated solar thermal power farms with a capacity totaling 2,000 megawatts.
The $5 billion investment would be the largest such project in China, though the companies didn't say who would be investing how much.
"This is a huge jump for China," said Deborah Seligsohn, director of the China climate program for the U.S-based World Resources Institute. "That amount suggests a number of commercial plants."
Interest in China as a solar energy market is growing quickly as the government looks for alternatives to coal. Saturday's deal comes four months after the largest solar panel maker in the U.S., First Solar, struck a tentative deal to build a massive solar field in China.
The eSolar deal is for concentrated solar thermal power — not the traditional image of vast farms of solar panels, but a system of taking what essentially are mirrors and focusing them to heat water to create steam to power a generator.
"There's room in the world for both systems, and we need both," Seligsohn said.
China is moving much faster than the U.S. in solar power development, eSolar officials said.
"This is an excellent example of what we all must do to fight climate change," Merrick Kerr, eSolar's chief financial officer, told a news conference Saturday in Beijing.
The first solar plant under the deal will be in Yulin city in the central province of Shaanxi.
China has set ambitious goals for solar and other renewable energy in an effort to clean up its environment and curb surging demand for imported oil and gas, which communist leaders see as a strategic weakness.
Late last year, legislators approved changes to China's 2006 renewable energy law saying utilities will be required to buy all the power produced by wind farms and other renewable sources in an effort to reduce heavy reliance on coal.
Government goals issued in 2005 call for at least 15 percent of China's power to come from wind, solar and hydropower by 2020, up from 9 percent now. Officials say that target may be raised to 20 percent because the industry is developing so quickly.

Coal, however, provides two-thirds of China's power and is expected to remain the dominant energy source in coming years.
China is the world's biggest emitter of greenhouse gases and is not bound by global agreements on curbing emissions because it is a developing economy. But the State Council, or China's Cabinet,
has promised to reduce emissions of carbon dioxide for each unit of economic output by 40 percent to 45 percent from 2005 levels by 2020.

My Comments:

China has declared that they will reduce the carbon emmission of certain amt by 2020.On that day the pressure came on India as well to declare the reduction of CO.But India has so far not declared any plans for reduction in emmission of CO.

But with the above order which China gave to one of the US Co , a multibillion order, $5 bn , for installing Solar Plants in China, India will have to buck up on this sector.China is doing the right thing to become a super power.When our politician will wake up is another call.The beurocracy should be trimmed down or cut down to size otherwise India will lose the golden chance to steer ahead of rest of the world.The problem in India is the Plans never gets finished in time.Take the case of Bandra Sea link.It took more then stipulated time and hence ended up with more expense.The cost went up by whopping 40-60% and maybe more.

When India will learn to finish the work in time?There are lots of hurdles that keeps on coming from the beurocracy.India needs to comeout from that shackles .When I read on Internet that Bandra Kurla Sealink was made open and it took 14 yrs to do that,there was a comparison with China.It was written that in that much time China would have made 6 Sealink of same type.

Now 6 timesmeans just imagine the saving in cost, human hours and moreover people starts using these much earlier that saves in petrol and time.

India will have to understand that complition of projects in time is upmost priority otherwise we will dole out more money as cost will go up with passing of time as commodities is still going to go up.For completing project in time, discipline is needed.That is what needs to come first.The hurdles of the beurocracy needs to be broken.The bribe should stop taking place.

Oh, India has to buck up in many ways.....when that will be done?China want to be a new super power and it is doing all things in right direction...when will India Wakeup?

The list where Co in India is in Carbon Credit:

1)NHPC (Recently RJ is buying)


3)SRF Ltd

4)Suraya Chakra Power

5)Torrent Power

6)Euro Multivision


8)XL Tele

9)Sahyadri Ind

10)Indo Wind

11)Guj Flouro


These are some names coming to my mind.

Houses expecting good nos for Dec qr 09....

When I sometimes get stumbled upon such news it blows off my mind.I am reading this NEWS in each and every business paper.ET,BS etc.....all the FII's houses and local houses says that Earnings will be better for Dec qr.When they were giving a negative bias for SENSEX weren't they knowing this?The reason they are giving is Low base.
So now what the so called analyst are gearing for?A rally in market that will takeout 21k before Budget or Mar 10?I will never be able to understand what they are upto and what they wants to tell the investors community.No one was bullish for 2010 and now when they says that Dec nos will be better ,what can be derived from it?That market will runup............
There are many who are still on the sidelines and with each and every upmove , they are becoming more and more Skeptics.They are selling stocks and are remaining in CASH.For them CASH is the King and they believe in the theory that better Safe then Sorry.
I think I have nothing to say here .Each and everyone has the right to think in his own way and charter his plan of future.
But I like this scenario.When experts sell, I feel very Safe because their apprehesion gives me more confidence.The day these expert will start investing , I will become catious.The day they will have no CASH left, I will become catious.Untill the expert have Cash in hand I am trouble free.I sleep very calmly at night.These experts has been catious since 14000 and see where are we?After 14k for each and every 1000 points they are catious and market is not listening them.Now the reason for them is penny and small and midcap has start running and hence now almost end of the journey.No way...the rally in Cash gr is going to get aborted.It will go on.They have to catch up with the sensex otherwise even at 21k , these stocks will be at the same level where they were at 8k.When the cash gr rally gets the momentum , some cats and dogs also run.Sometimes it also happens that one feel that they are cats and dogs but there can be a story brewing up.
There are scores of Midcaps /Smallcaps which are available at 4-5 p/e ratio.They have to buck up the trend.......I am bullish for the year 2010, disregarding what experts feels.I may prove wrong but that is my view.
Market is cosolidating with each and every move.There is no hurry to break 21k.So there is no rush.When market takes it own times to move ahead ,then there can't be a huge correction in offing.
The only thing one need to do is Investment.Don't trade.Once you get the habit to trade , you will keep on doing that and no one has made money while trading.Actually one will have to sell the investment for paying up the loss in trading.I have seen that.....I have seen no trader making money .Maybe for couple of days or week one can see the profit but then it takes away all the profit and one end up in loss and one has to sell good fundamental shares.
So take a Vow that in New Year, there will be no day trading.There will be no playing in F&O.......

Pipe Dreams.......

Piping hot
R. Sree Ram
December 4, 2009

Who would have thought the stock market would be a slave to fashion? A few months ago, the runways’ fixation with metal accessories prompted a huge surge in metal stocks on D-street. This time, the source of inspiration seems to be drain pipe pants, the craze for Autumn 2009, and it has put the spotlight on the pipeline industry.

Click here to EnlargeSeriously though, the interest in the pipeline industry has little to do with fashion and everything to do with economics. With the resurgence of economic activity, the demand for crude oil is bound to go up. This spurt is expected to directly benefit the countries and companies that produce oil. More importantly, the rebound in prices is giving a fresh lease of life to the ancillary industries. According to International Energy Outlook, the demand for energy is expected to witness an average annual growth of 1.5% till 2030. Furthermore, crude oil being a capital-intensive industry, companies have to spend huge sums of money to dig, transport and market oil. In the process, a host of companies that provide rigs, refining services and pipelines for transportation are benefited. By betting on pipelines, particularly, you too can expect to go ka-ching.

According to analysts, 710 pipeline projects are being planned in the next five years and Indian pipe manufacturers collectively hope to increase their production capacities by 17% in two years. While research house Macquarie estimates the opportunity for the global pipeline industry to be $78 billion, domestic brokerage house Ventura pegs it at $117 billion. Also, GAIL, GSPL and other domestic players like Reliance Industries have announced plans for pipeline projects worth over Rs 22,000 crore.

The oil and gas industry mostly uses two types of pipes. Welded or submerged arc welded (SAW) pipes are used for transportation of fuels, while seamless pipes are primarily used in exploration and drilling activities. The shift towards cleaner fuels (gas) and new oil & gas findings are the most important factors that are expected to drive the demand for SAW pipes. “The demand for welded pipes remains strong because of the continued need to connect new areas of oil and gas supply to areas of net demand,” says Amit Mishra, an analyst at Macquarie. Not that seamless pipes are a lost cause—the demand is expected to pick up from the second half of 2010. In addition, the replacement of older pipes is being seen as an opportunity for pipe producers. An estimated 50,000 km of pipelines is expected to be replaced in the next five years. Ventura estimates a demand-supply mismatch of one lakh million tonne pipes per annum in the next two years.

Of the total estimated 3.25 lakh km of pipelines to be laid across the globe, North America, Middle East and Asia have bagged the lion’s share. The Indian pipe industry, with its cost advantage in terms of conversion (from steel to pipe moulding), is expected to benefit the most. All factors remaining on track, the stocks of pipe manufacturers are poised to outperform broader markets.

So, which are the companies to invest in?

Welspun Gujarat Stahl Rohren and PSL Ltd are being seen as the best bets in the sector. Welspun’s stock was the worst hit last year due to its higher exposure to export markets. However, with demand recovering and the outlook for the export market improving, the company is expected to turn in a good set of numbers. “Indian pipe companies are trading at a discount of around 50% to their global peers. Welspun is also trading at a discount to its Indian peers, and given its strong earnings growth, robust order book, backward integration and larger share of high-margin orders, the stock warrants a higher multiple premium to its peers,” says Mishra. India Infoline too maintains a buy rating on the stock, with a price target of Rs 314. On the other hand, PSL, a domestic player with a 40% market share, is being recommended for the lower valuations and a strong presence in SAW pipes. At an estimated 2009-10 EPS of Rs 23-29, the stock is trading at a PE of 4.4-7.5 times. The company’s order book of Rs 4,586 crore is 1.2 times more than last year’s revenues.

Whichever way you look at it, pipes are hot, and will remain so at least for the next three years.

My Comments:
Have I to say anything more on this article?
PSL Ltd is the Best Bet......going still at throwaway price.......

Saturday, January 9, 2010

Water treatment, access becomes fast-growing biz .....Tata Chem...@317..

Water treatment, access becomes fast-growing biz

PB JAYAKUMAR Mumbai, 8 January
Orders are flowing for the water and wastewater treatment industry, as leading players in the domestic market such as VA Tech Wabag, Larsen and Toubro, Thermax and IVRCL Infra have bagged over Rs 2,500 crore worth of orders in the past twoto-three months.

VA Tech Wabag, headquartered in Chennai with a Rs 1,200-crore turnover, yesterday said it has been awarded the contract for implementing India’s largest seawater desalination project, by Chennai Metropolitan Water Supply and Sewerage Board (Chennai Metro Water). The total cost of the project is Rs 1,033 crore and it will have a capacity of 100 million litres a day. The plant will be constructed on a DBO (design, build and operate) basis and will be commissioned in the next 24 months.

VA Tech Wabag had earlier designed and built seawater desalination plants for Adani Power in Gujarat, for Hindustan Petroleum Corporation at the Vizag Refinery, and for Gujarat Mineral Development Corporation.

“With this, our order book now stands at Rs 3,300 crore and we expect another Rs 500-600 crore of orders within the coming three to four months,” Rajiv Mittal, managing director, told Business Standard.

The Indian water treatment business is estimated to be about Rs 2,000 crore and growing at 15-20 per cent annually. This includes the Rs 1,200crore industrial water treatment sector and the Rs 800-crore point-of-consumption market, which involves localised water treatment.

PSL Ltd, the largest manufacturer of pipes in India, today announced it had bagged orders worth over Rs 425 crore in the past 10 days for the manufacture of pipes for water supply projects from infrastructure companies like L&T, Lanco, Nagarjuna Construction Company, Subhash Projects (SPML), and South East Constructions.

“We expect various infrastructure players to place orders worth Rs 2500 crore for pipes for water supply projects within the next 18 months,” said Ashok Punj, managing director of the Rs 3,600 crore turnover PSL, which controls over half of the pipe market in the country.

In another announcement, IVRCL Infra and Projects yesterday said it had bagged infrastructure projects worth Rs 958 crore, which includes a Rs 253-crore order from the Gujarat government’s Gujarat Water Infrastructure for implementing the NC-24 water supply scheme in the state. The company also bagged a Rs 142.35-crore contract from Cauvery Neeravary Nigama and another Rs 133.64 -crore contract from Bangalore Water Supply and Sewerage Board (BWSSB). With these, the company’s overall order book now stands at Rs 22,000 crore, IVRCL said in a filing to the Bombay Stock Exchange.

Last week, engineering and construction major Larsen & Toubro had said the company got a Rs 189-crore order from the BWSSB. The contract includes fabrication and laying of a mild steel pipeline. The scheme, funded by Japan International Cooperation Agency, envisages transmission of 500 million litres per day of clear water from the river Cauvery (Shiva Balancing Reservoir) to Bangalore. The project, to be completed in 24 months, involves laying a pipeline from Harohalli to Tataguni and Vajarahalli, along with associated civil work.

L&T’s water and water treatment business are handled by the Metallurgical, Material Handling and Water Operating Company, a part of its construction division. In October, the Uttar Pradesh Jal Nigam had entrusted L&T with a Rs 488-crore order for implementing projects under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), a massive city modernisation scheme funded by the Government of India. Of this, Rs 274 crore will go to provide a sewage system to Varanasi city in 30 months, another Rs 121 crore to provide water supply to Allahabad city in 24 months and Rs 93 crore to a wastewater management system for Mathura town, also in 24 months.

The allocation for JNNURM was increased by 87 per cent by the Union government for 2009-10 to Rs 12,887 crore. It had sanctioned 463 projects requiring an investment of Rs 49,743 crore, ( That is a BIG Figure...)mainly for basic urban services like water supply, sewerage and stormwater drainage. Agencies such as the Asian Development Bank, World Bank and Japan Bank for International Cooperation are also funding water and wastewater treatment projects.

Another leading player in the segment, Pune-based power solutions player Thermax, had bagged Rs 155 crore worth of orders for sewage treatment in Maharashtra and in Jammu and Kashmir.
The Indian water treatment business is about Rs 2,000 crore and is growing at 15-20 per cent annually .

My Comments:
There will be big gap coming up for the water treatment for Ind purpose as well as commercial use.
Ion Exchange where RJ has taken stake looks good , Tata Chemical looks extremly good to me as it has just put its "Swatch " titled water purifier in market which is going to be growth driver for Tata Chem in years to come.Moreover,with food grain scarcity coming on in world , more and more fertilizer will be needed perticularly Co using Potash for making Fertilizer will have field day.....and Tata Chem is one of them.
I think Tata Chem is a multibagger in making from hereon.
I remember I gave a call on Tata Power at mmb in last bull run around 300-400 and it went on to touch 1300-1400...and then came down in 2008 and again is back at 1400...I am seeing the same rerun in Tata Chem....Future looks extremly bright for Tata Chem.....These are my views and I may prove wrong in big way....
Actually I was trying to write on Tata Chem but was waiting for appropriate opportunity and this article gave me that .....Rest of the Due Diligence I leave it for my readers.....

What I would like to see here is how many readers read this news in BS paper today and how many makes out from it, the analysis.....see everyone reads the news in paper but how one interprets is important.How much one can apply information one have in mind ,can again able to recall and try to corelate with the NEWS one read, is important.......
I gets lots of mail asking me how they can do things I am doing....first try to read business papers as much as you can, like ET,BS,FT etc and then read stock market Magazine like Business India, Business World, Capital Market , Business Today, Money Life them properly...I have written in past but just repeating for new readers.........I never missed a single issue of Business India and Capital Market Magazine as I was subscriber of those.Then I always bought 2 business papers , viz:ET and BS and will go to library and read FT and other Magazines.....These are the basics and intial steps for climbing up the ladder ....As a matter of fact , I can say that, how many times I have read the Capital Market Magazine Score Board , I can't say...I use to go through the Score Board umpteen don't ask me what needs to be looked in it....try to find of your own what needs to be is all trail and error....and from that learning...
Gather as much information as much you can from the world market, try to read what is happening in the world, what is in demand and what is going out of favour.These all helps .....what readers are seeing is not a mere 2-3 yrs of hard work.It is a long way for my take in stock market and I developed it with experiance......and let me write ,that not all can do that , like someone having same experiance like me and still maybe not as good as me.It depends upon ones PASSION...I always thrive in search of new sector , a niche sector and a Co having niche product which if successful can do wonders for the bottomline....

Updates on JSW Energy Ltd : First time after the IPO, one of the brokerage has come out with a buy report for JSW Energy which vindicates my call that JSW Energy can be applied on IPO...

Friday, January 8, 2010

PSL expands capacity as pipeline orders boom here, abroad ..........

PSL expands capacity as pipeline orders boom here, abroad

PB JAYAKUMAR Mumbai, 7 January
India’s largest pipe manufacturer, PSL Ltd, is augmenting its manufacturing capacity by 300,000 metric tonnes (mt), or about 20 per cent, to meet demand from the oil and gas and water treatment sectors.

The current manufacturing capacity is 1.475 mt and anew 300,000 mt unit is being erected at Visakhapatnam. It will start commercial production by April.

Further, the Rs 2,600-crore turnover company is relocating about 300,000 mt of capacity to Chennai, from its other 11 pipe mills in the country. This is to gain locational advantages, as many new pipeline projects are coming up in South India. The company had earlier raised Rs 200 crore from the secondary market through issue of securities to fund the expansions, said Managing DirectorAshok Punj.

“With this, we will be able to meet demand for the next few years in India and abroad,” he told Business Standard.

Orders worth Rs 5,000 crore from the oil and gas sector and Rs 2,500 crore from the water treatment sector are likely be placed with pipe manufacturers within the next 18 months, Punj said. At present, PSL has an order book of Rs 2,200 crore from the oil and gas and water segments.

Sources said the Indian pipe industry is among the top three manufacturing hubs after Japan and Europe. The market for pipes in the country is about Rs 10,000 crore and is dominated by PSL, Jindal Saw and Wellspun( Now compare PSL with JSW and Welspun Gujarat -Stalhl Rohren Ltd). Raw materials account for more than 70 per cent of the total cost. Normally, orders for pipes are placed by infrastructure companies when steel prices are low.

My Comments:
Readers use to ask me how one can find orderbook position of Cos.I donno any way except looking out for news in pink papers like this I read today in BS....or try to explore through internet....or call and ask CS of the Co.....I have never called any CS of any Co.I have seen people calling CS of the Co to know about how Co is doing and asking queries of their concerns.......I never do that....never call CS of any Co...

Reliance MediaWorks...cmp..279.95...old Adlabs Ltd...

I like Adlabs Ltd.I like the way AnilAmbani has chartered the route of growth for Reliance Media Works.
For any Film to get released it has to go through the processing.Untill it is proccessed in a Lab there can't be any print taken out.If anyone going to theatre to see movie or try to see at own TV while putting a CD or DVD in player, one can see the title coming first.Like Actors name, Actress Name,other artist, Photograhpy by..., then Asst Dir, Asst Producer, then one can see where it is processed.....and in almost all film that one go to see, the name that comes for where the Film was processed is none other then Adlabs Ltd.....This name one should have always seen whenever they see a movie .The Producer gets changed,the Dir Gets changed,the actors get changed, the name of the film gets changed but the Lab where the Film is processed is always Adlabs Ltd......This name one will always find in any film.
3-4 yrs back Anil Ambani Media gr tookover this Co from the then owner Manmohan Shetty.ADAG gr after that has made many annoucement for making venture film which can have both of the Hollywood and Bollywood.He has also tied up with the Hollywood best director, Steven Speilberg and some of the best actors of Hollywood.
Rel MediaWorks has got its overseas distribution Co as well and latest , they have distributed Paa and 3 Idiots overseas including USA.
I today just went through the ET and a news caught my eyes which says that Rel MediaWorks is taking over a Lab in UK...

Read on:

Reliance MediaWorks acquires ilab UK
Buyout To Help Reliance Tap Entertainment Cos Looking To Outsource Production & Development
Our Bureau MUMBAI
RELIANCE MediaWorks (RMW), formerly Adlabs, has acquired the assets of ilab UK Ltd., one of only two film processing facilities operating in London’s Soho. With this acquisition, RMW has expanded and strengthened its international presence which is already spread well across the globe.
With ilab, RMW offers a dedicated film and media services facility in London, that will offer front-end, processing, restoration, 2D to 3D conversion and post-production services to broadcasters and studios. In fact, ilab has been the lab of choice for high end processing for film, television, commercial and shorts productions. “Our expansion is growing at a remarkable pace. The UK is one of the world’s leading post-production markets and now we have a presence there. Through RMW UK we would provide next generation services for the local film makers and broadcasters, while also catering to Hollywood and Hindi film businesses,” said CEO RMW, Anil Arjun.
While strengthening their services portfolio in UK, Arjun says they gain talent, experience and local learning that ilabs team brings on board. “We look forward to the creative synergies that integrating of UK operations would bring to the entire film and media services value chain that RMW has developed across continents, ” Arjun added.
RMW UK has already secured image processing and restoration work for two high profile projects from BBC at RMW’s LA-based subsidiary Lowry Digital, Hollywood’s leading film restoration expert. Lowry Digital has handled projects for leading studios like Walt Disney, Paramount Pictures, MGM and 20th Century Fox and entertainment leaders like George Lucas, Steven Spielberg and James Cameron. Also recently, Lowry Digital has handled the restoration of footage sent back to Earth from Apollo 11, as part of the 40th anniversary celebrations of the mission for NASA.
To further enhance the synergy between the services offered by RMW across three continents, the company has established an optical fibre network, first of its kind, through Reliance Globalcom’s Ethernet Private Line. This network has already been used for close to a year for distributing digital cinema releases of Indian films from Mumbai to the US.
In the past year, ilabs has been the rushes house of choice for the majority of high-end film originated Drama Series for the BBC and offers bespoke, specialist rushes service night and day for the commercials, feature and broadcast market. Apart from tying in with RMW’s lab facility in Mumbai, it will be able to offer lab, rushes and transfer services to the many Indian films that are shot on location in London and UK each year.
Reliance MediaWorks has a dominant and comprehensive presence in Film Services: Motion Picture Processing and DI; Visual Effects; Film Restoration and Image Enhancement; Digital Mastering: Studios and Equipment rentals with facilities located at US and India.

My Comments:
At 269 , a 5 paidup stock with a high of 463 and low of 136, it is at the midway between them.I had given a call on UTv and I am giving another call in same sector RelMediaworks Ltd.I remember ADAG gr has annouced an investment of 4500 cr for making film which consist of Hollywood and Bollywood actors.....

Thursday, January 7, 2010

Transgene Biotek tie-ups with Dr Reddy's Laboratories ....updates on Bombay Dyeing..

Here comes the news for Transgene Bio which I have been recomending since my mmb days.I have even once recomended here as well.It was not moving at all and now with this new tieup with Dr Reddy's should show some movement.Transgene has also tied up with Cuba for some other drugs which if explored will be found.....

Transgene Biotek tie-ups with Dr Reddy's Laboratories
Thursday, January 07, 2010 17:45 IST
Our Bureau, Mumbai

Transgene Biotek Ltd (TBL) has entered into a licensing and technology transfer agreement with Dr Reddy's Laboratories (DRL) for the out-licensing of a technology for the manufacture of Orlistat. Through this tieup, DRL will gain worldwide rights to a unique technology for the manufacture and commercialization of Orlistat API which was developed exclusively by TBL. The company will receive an upfront payment, additional payments for certain commercial milestones, and royalties on the sale of Orlistat API in all countries worldwide.

Orlistat is a lipase inhibitor used for obesity management that acts by preventing the absorption of fats from the human diet, thereby reducing caloric intake, and is the most studied weight loss medicine in the world, with more than 100 clinical studies, involving more than 30,000 patients. Is is used in the treatment of Obesity including management of weight loss and weight maintenance.

TBL earlier out-licensed its recombinant Hepatitis B Vaccine technology to Serum Institute of India, one of the largest vaccine producers in world.

Updates on Bombay Dyeing....:
CLSA has come out with a report for Bombay Dyeing.It says that the project for the land they owns that is coming up , the NAV is 1350/share after deducting the loss of textile unit......


DQ Entertainment, Method Animation and MK2 to collaborate to produce TV series, movies


AMINAH SHEIKH Mumbai, 6 January
“A day without a laugh is a wasted day,” said Charlie Chaplin in his famous comedy character. Now, several decades later, that icon of the silent film era will dawn on our television screens in an animated avatar.

An Indian animation and special effects company, DQ Entertainment, headquartered in Hyderabad, has acquired the animation remaking rights of Charlie Chaplin from the Chaplin family, in collaboration with two French companies, Method Animation and MK2.

The legendary comedy show will be produced by them in animated format, as a television series and as movies.

While a formal announcement is expected in this week, the production is already reported underway. Tapaas Chakravarti, the Chairman and CEO of DQ Entertainment was not available for comment.

Sources say DQ is also in talks with multiple channels internationally to telecast the animated series worldwide, including Europe, Japan, Australia, UK and China. The telecast rights in India are yet to sold.

The Charlie Chaplin series had started in the early 1900s, featuring a character who captured the hearts of generations with his toothbrush mustache,a funny walk and two prized possessions, a hat and a bamboo cane.

The sources said the TV series will first go on air, followed by the movies.

DQ plans to raise around Rs 150 crore through an Initial Public Offer, for which it is divesting close to 25 per cent of its equity. Earlier, the company had announced filing of its Draft Red Herring Prospectus, on September 30 last year, with the Securities and Exchange Board of India. The lead manager for the issue is SBI Capital Markets and the syndicate banks are YES Bank and India Infoline. According to sources, the company will raise an additional Rs 62 crore from internal accrual and bank loans.

DQ is a production house for visual effects, digital animation for television, feature films, and animation games for PCs and consoles. It has worked with Walt Disney Television Animation, Marvel Comics, Nickelodeon Animation Studios, Electronic Arts, the BBC Group and NBC Universal, among others. Some of the projects have been The Jungle Book ,Casper Iron Man animation series, Omkar ,Little Nick Tara Duncan.

In December 2007, DQ had listed on the Alternative Investment Market of the London Stock Exchange and raised $56 million. The funds were used to boost its distribution network globally, to develop production facilities in India and other business plans.

Currently, it employs around 2,800 permanent staff and 700 freelancers. It has offices in Kolkata, Mumbai, Chennai, Paris, Los Angeles, and Tokyo.

My Comments:
I think the IPO of DQ Entertainment would be a great thing to apply for.I donno what is the issue price so can't speak much on that.Let us see at what price the IPO comes.But this is one IPO where investor needs to lookout for....and I think DQ stands for Data Quest and there is one co who is publising Data Quest Magazine, I can't remember the name but it is an IT Co a listed one...and hence they maybe holding stake in DQ Entertainment....try to find that Co....

Stride Arcolab.....cmp..234.95.......making giant strides...

I have been tracking this Co since 2005-06.It was suppose to have prospered as a great pharma co but that didn't happened.But since last 6 months I am reading good news on this upcoming pharma Co.
I would not write what Co was going through in last 6 months .That I keep it for my readers to explore what this Pharma Co was doing.
But today when I read news in BS I can't resist myself to write on it.
I am pasting that article of BS here.....

Read on:
Pfizer to source 40 off-patent cancer care drugs from Strides

BS REPORTER Bangalore, 6 January
Global pharma major Pfizer is to source source 40 off-patent (generic) cancer care products from Bangalore-based Strides Arcolab and sell the products in the United States.

Announcing this deal today, the two companies said they had formed a collaboration wherein Pfizer will commercialise off-patent sterile injectable and oral products in the US through its Established Products Business Unit (EPBU), which focuses on generics. The EPBU launched its US injectables team less than 10 months earlier and is already marketing products there.

These dosage-form cancer care products will be licensed and supplied by Strides and Onco Laboratories Ltd and Onco Therapies Ltd, two joint ventures between Strides and Aspen, South Africa, in which each has a 50 per cent ownership interest. The financial terms of the supply agreement were not disclosed.

Strides, with a top line of close to Rs 2,000 crore, will deliver the 40 off-patent products, many of which are oncology therapeutics, to healthcare providers and patients in the US, by joining Pfizer’s commercial infrastructure with Strides’s manufacturing capabilities. The first of the products commercialised under this collaboration is expected to be launched in 2010.

“This Strides collaboration is new and exciting, and we are encouraged about the potential of this relationship,” said David Simmons, president and general manager of Pfizer’s EPBU. “In addition, this agreement brings the total number of products in-licensed by our Established Products Business Unit to more than 200 — resulting in a total business unit portfolio of approximately 600 products for patients.”

My Comments:

Stride Aroclab has made inroads in Cancer drugs and has been able to have MNC like Pfizer collobarating for Off Patenet drug in cancer.

That is to me a major breakthrough for Stride Arcolab.Seems happy days are here again for Stride Aroclab.A 2000 cr topline pharma Co going just at Rs 234....! Wow!The patent are no less then 40! That is big....numbers.

Rest of the DD I would like to be done by my readers.......Promoters holdoing 25.73% and other Corp investor holding 54.31 % , means 80% is with biggies and hence only 20% remains with public.....that is added trigger for this upcoming Pharma Co...

Wednesday, January 6, 2010

Deep Ind...cmp 113......In Gas Compression Service.....

I gave a call on Deep Ind in sep 09 .It is at the same place.Not much movement.
With more and more Gas found in our reservoiers , Gas Compression Service will have a big future as Gas found needs to be compressed to fill in the tank to take it from one place to another place.It needs to be compressed while also taking out from the earth.
I know nothing about how the things work at the site and how it is done.This is just a come sense thinking.I maybe wrong in understanding the whole process of when the gas is taken out from the reservoier and filled in the tank etc.....
But simple logical thinking is that Gas should be compressed before filling in any tank.
So I would like to know from my readers if any Co other then Deep Ind , which is listed or not listed in our market do the same type of work,Compressing Gas.....

Cramped on Land, Big Oil Bets at Sea ..............

Cramped on Land, Big Oil Bets at Sea
by Ben Casselman and Guy Chazan
Wednesday, January 6, 2010
provided by The WallStreet Journal.

Chevron is leasing the Clear Leader, which floats in 4,300 feet of water in the Gulf of Mexico, to drill for oil through nearly five miles of rock.

Big Oil never wanted to be here, in 4,300 feet of water far out in the Gulf of Mexico, drilling through nearly five miles of rock.

It is an expensive way to look for oil. Chevron Corp. is paying nearly $500,000 a day to the owner of the Clear Leader, one of the world's newest and most powerful drilling rigs. The new well off the coast of Louisiana will connect to a huge platform floating nearby, which cost Chevron $650 million to build. The first phase of this oil-exploration project took more than 10 years and cost $2.7 billion -- with no guarantee it would pay off.

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Chevron came here, an hour-long helicopter ride south of New Orleans, because so many of the places it would rather be -- big, easily tapped oil fields close to shore -- have become off-limits. Western oil companies have been kicked out of much of the Middle East in recent decades, had assets seized in Venezuela and seen much of the U.S. roped off because of environmental regulations. Their access in Iran is limited by sanctions, in Russia by curbs on foreign investment, in Iraq by violence.

So, Chevron and other major oil companies are moving ever farther from shore in search of oil. That quest is paying off as these companies discover unexpectedly large quantities of oil -- oil that only they have the technology and financial muscle to find and produce.

In May, the first wells from Chevron's latest Gulf of Mexico project came online. The wells are now pumping 125,000 barrels of oil a day, making the project one of the gulf's biggest producers. In September, BP PLC announced what could be the biggest discovery in the gulf in years: a field that could hold three billion barrels.

Beyond the Gulf of Mexico, companies have announced big finds off the coasts of Brazil and Ghana, leading some experts to suggest the existence of a massive oil reservoir stretching across the Atlantic from Africa to South America. Production from deepwater projects -- those in water at least 1,000 feet deep -- grew by 67%, or by about 2.3 million barrels a day, between 2005 and 2008, according to PFC Energy, a Washington consulting firm.

The discoveries come as many of the giant oil fields of the past century are beginning to dry up, and as some experts are warning that global oil production could soon reach a peak and begin to decline. The new deepwater fields represent a huge and largely untapped source of oil, which could help ease fears that the world won't be able to meet demand for energy, which is expected to grow rapidly in coming years.

For oil companies, the discoveries mean something more: After a decade of retreat, large Western energy companies are taking back the lead in the quest to find oil. "A lot of people can get the very easy oil," says George Kirkland, Chevron's vice chairman. "There's just not a lot of it left."

There are challengers to Big Oil's deepwater dominance. Brazil recently has moved to give a larger share of its offshore oil to its state-run oil company, Petrobras. A handful of smaller companies, such as Anadarko Petroleum Corp. and Tullow Oil PLC, have had success offshore, particularly in Ghana, where giants like BP and Exxon Mobil Corp. are now playing catch-up.

The enormous investments of time and money required for such projects have made many experts skeptical that they can ease the long-term pressure on global oil supplies. The scale of the projects means that few smaller companies have the resources to take them on. Devon Energy Corp., an independent producer based in Oklahoma City, recently announced plans to abandon its deepwater-exploration business to focus on less-expensive onshore projects, which is says will produce a better return.

"This is technology capable of going to the moon," says Robin West, chairman of consulting firm PFC Energy, involving "extraordinary uncertainty, immense levels of information processing, staggering amounts of capital."

Offshore drilling is almost as old as the oil industry itself. In the 1890s, companies began prospecting for oil from piers extending off the beach near Santa Barbara, Calif. Gulf Oil drilled the world's first fully offshore well from cedar pilings on a shallow lake near Oil City, La., in 1911.

From there, the industry pushed gradually outward, from the Louisiana bayous in the 1920s into the Gulf of Mexico, where Kerr McGee drilled the first well out of sight of land in 1947.

The push into deeper water has come in the past decade.

"What has enabled us to do that is technology," says David Rainey, BP's head of exploration for the Gulf of Mexico. "We have been pushing the limits of seismic-imaging technology and drilling technology."

Perhaps a bigger reason for the recent emphasis on deepwater exploration is that companies had few other places to go. In the early decades of oil exploration, Western companies were the only ones with the technology to manage big oil projects. But as technology spread and state-run oil companies became more sophisticated, foreign governments have relied less on outside help and have demanded greater control of their own oil resources.

With a few exceptions, state-run companies have largely stayed out of the deep water, with its enormous technical challenges and multibillion-dollar investment requirements. Western companies have steadily pushed farther offshore, not just in the Gulf of Mexico but in places like Nigeria, Malaysia, Norway and Australia.

At the same time, traditional oil fields have begun to dry up. In Mexico, the world's seventh-largest oil producer, daily production has dropped 23% since 2004 as output from its giant Cantarell field fell sharply. Other countries have seen their own, mostly smaller, declines.

Falling output from old fields has stoked fears that world-wide production could be nearing its peak. Global oil reserves -- a measure of oil that has been found but not yet produced -- fell in 2008 for the first time in a decade, according to BP's annual statistical review. Moreover, there are signs demand could soon catch up to supply. Global oil consumption has risen by 5.4 million barrels a day in the past five years, while production has risen by just 4.8 million barrels a day.

Such fears helped drive a rapid run-up in oil prices to nearly $150 a barrel in July 2008. The global recession cooled demand, driving down prices, although many experts expect prices to rise again when the economy recovers. Already, prices have rebounded to about $80 a barrel, from under $35 in December 2008.

Rising prices have spurred offshore exploration. By 2008, about 8% of global oil production came from deepwater fields.

Yet even the biggest deepwater projects aren't enough to put a dent in global supply problems on their own. The world's largest deepwater platform, BP's Thunder Horse in the Gulf of Mexico, produces 250,000 barrels of oil a day, just 0.3% of global consumption.

"These discoveries are changing the debate," says Ed Morse, chief economist for LCM Commodities, a brokerage firm. What remains unclear, he says, is whether the deepwater projects will ensure that new discoveries continue to meet demand.

Many in the industry argue the new fields have expanded the limits of where the industry can find oil, potentially delaying a decline in global production.

"There are vast unexplored areas in deep water, so tremendous opportunities for growth," says Steven Newman, president of Transocean Ltd., which owns the Clear Leader rig.

The push into deeper water hasn't always been smooth sailing. Offshore projects are expensive, time-consuming and prone to failure. Chevron boasts of a 45% exploration overall success rate in recent years, a remarkable run by industry standards, but one that also means the company has spent billions on projects that haven't panned out.

Chevron's successes have outweighed its failures. It was expected to be the fastest-growing big oil company in 2009, as measured by oil production, in large part because of new offshore projects in the Gulf of Mexico and off Brazil. Other companies that have embraced offshore exploration, such as BP, are also seeing big growth, while those that haven't are scrambling.

Exxon, which hasn't emphasized deepwater exploration as much as competitors, recently offered $4 billion for a stake in an oil field off the coast of Ghana.

Chevron made its big offshore bet in the 1990s, when it began buying up leases in the Gulf of Mexico that were in such deep water, the technology didn't yet exist to drill there. Confident that technology would catch up, the company in 1996 bid in and won a U.S. government auction for the right to explore for oil in several areas of the gulf, in hopes that a fraction would turn into producing fields.

Chevron then spent six years analyzing its new holdings, figuring out which were most likely to hold oil. The key tool in its arsenal: seismic imaging, a sonar-like process in which sound waves are shot into the rock, and their echoes are picked up by sensors on the surface.

Adding to the challenge: The oil that Chevron was pursuing lay beneath a thick layer of salt, which disrupts seismic sound waves and blurs the images like a smudge on a camera lens. The company had to analyze the data with supercomputers to clear up that distortion.

The analysis revealed a potentially huge oil reservoir. Even so, Chevron estimated it had only a one-in-eight chance of finding commercial quantities of oil. The only way to know for sure was to drill.

So, in 2002, Chevron spent about $100 million to sink its first well in the field, which came to be known as Tahiti. That well needed to hit a 200-foot-long target from five miles away -- akin to hitting a dart board from a city block away.

"You have to roll the dice, and the dice roll now is north of $100 million," says Gary Luquette, president of Chevron's North American exploration and production division.

Chevron's first Tahiti well struck enough oil to make it worth more drilling to see how big the field might be. By 2005, the company had learned enough to go forward with the project. That required building a 700-foot-tall, 45,000-ton floating oil-production platform, and drilling a half dozen wells to feed oil to it. Tahiti produced its first commercial quantities of oil in May.

On a recent morning, the Clear Leader rolled on the waves 190 miles south of New Orleans, held almost perfectly in place by its satellite-controlled navigation system and six Korean-made engines.

In a cabin on the ship's deck, a team of drillers in coveralls monitored computer terminals as they used joysticks to control a drill bit more than 12,800 feet below. The oil they were targeting lay another 14,000 feet underground -- an easy reach for a ship that can drill down 7.5 miles.

The well is part of a second phase of the Tahiti project, which will require drilling several more wells and expanding the floating platform -- an additional $2 billion in spending, still with no guarantee of success.

Kevin Ricketts, a Chevron engineer who worked on both phases of the Tahiti project, recalled looking up at the massive platform while it was still on shore, and reflecting on how his team's analysis had led to its construction.

"I'd never seen anything that big," Mr. Ricketts said. "I thought, holy moly, our production forecast led to that thing being built. I sure hope we're right."

Which are the Indian Drilling Co which rents Oil Drilling Rig for Deep water .....
Aban Llyod seems to me a big bet still.....