Tuesday, January 19, 2010

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

Friends,
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
1)L&T
2)Areva T&D
3)Alsthom
4)Seimens
5)ABB
6)Kalpataru
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......

27 comments:

  1. 愛情是盲目的,但婚姻恢復了它的視力。.........................

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  2. This comment has been removed by the author.

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  3. Dear Rajeev,

    Some guy "Nakul" has copy-pasted your report about Spanco at MMB...i just gave him 2 cents of courtesy to mention your name as the person who has origanlly written it.

    Regards,

    Heart

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  4. Dear Rajeev,

    Following is the link to an intresting story.....kidly read and give your comments.

    http://www.vccircle.com/500/news/former-halonix-promoters-to-drum-up-action-in-solar-cells-biz

    Regards,

    Heart

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  5. Dear Rajeev,

    Wouldnt Sujana Towers also benfit immensely with this ???

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  6. hi RAJEEV, how is ROHIT FERRO looking?

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  7. Hi,

    Do you like anything in the sugar sector? I have Uttam Sugar (past mistake) and sitting on huge loss...

    rgds,
    blv

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  8. Dear Rajeev sir ,

    i have gone throu spanco in breif, accor wat website show abt sharholding pattern is like this
    promoters": 38 %
    fii 12%
    dii 20%
    others 30%
    from sept 2008 to sep 2009 dii has increase stake in co by 10% and promoter by 7% where has other holding has come dn .

    spanco still nascent stage of development , it is turnover is less compare it peers .

    in same sector klg systel also avaiable , it has hit roof in 2007-2008 bull mkt , any review abt this company

    has i find time i will check more in detail let u know all people

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  9. Heart,
    My id at mmb is "nakul" and the post which u see is under my name....No one has copied ...I myslef has done that...

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  10. This comment has been removed by the author.

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  11. KLG is looking good.While comparing Spanco with its peers.Spanco is alreday have 1000 cr turnover and see the Mcap of Spanco?It is just 184 cr.The price is 70 for 10 paidup share.
    While Patni is 2 paid up and 510, means 2550 , 10 paidup and turnover is 1500 cr while Mcap is 6586....like wise compare L&T etc....
    Spanco is going damn cheap looking at any parametres...

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  12. HI Rajeev

    i took a small exposure in spanco today. on digging spanco yeah it looks cheap with eps of around 60 and a 1000 crore turnover company having market cap of 180 crores.

    also i wanted to know whether it recieved a order of 1000 crore from bsnl or not.if thats the case then with 15% margins it will get 150 crore in profit which will bring whole year eps itself to 50.. thats huge..

    waiting for inputs from you.

    thanks
    ravi

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  13. ravi,
    actually from BSNL they are suppose to get half of the tender,means Rs.3750.Not clear whether that has gone through or not....

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  14. Mitz,
    Sujana Tower is a dark horse....

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  15. Kitty,
    Rohit Ferro is coming out with right issue.Let us see...how it pans out..

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  16. blv,
    I do not track Sugar sector though I have given 2 shares recently.One was Thiru Arooran Sugar and other was Bannari Aman Sugar.Both have runup from there....so can't give a call now on them.But try to have a look at them...and if u find value buy ...

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  17. I am seeing one comments in other language.It can be Chinese or Korean or something else....I request the reader to write in English so that I can understand and give reply....Thanks...

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  18. Rajeev

    At these levels to find pockets of Value is a tough job and as things keeps on getting discovered it makes it even more tougher. How you manage to do it all the time is really commendable.

    Regards

    Amit

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  19. Dear Rajeev,

    Pls forgive me for the ignorance....coz the moment when i saw your write up over there, got a lil furious and wrote my comments for "Nakul". The thought of reading abt "Nakul" completely overshot me. Hope you will understand.

    By the way did you read about Indosolar....the link i posted ? Kindly comment.


    Deep regards,

    Heart "Raja Bahadur"

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  20. Raja,
    That is fine.
    The co that were discussed in that link in V C Circle are Moser Baer and Webel.I track both.But to me valuation looks expensive and hence never recomended them here.
    I may be wrong and from here also they can give big return.
    Remember nothing is impossible in stock market.One cannot rule out anything...We see valuation stretch in co like Moser Bear and Webel and also are seeing stock like Spanco, RS Software etc still at low valuations...

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  21. thanks RAJEEV for the reply,hope am not annoying u with an occasional query.

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  22. Dear Rajeev,

    I really find it intresting that many ppl are opening up to invest huge in solar/wind energy sector esp. solar....like that father-son duo of Indosolar who are banking big on Sun.

    Regards,

    Heart

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  23. Dear Mr Rajeev

    What About Torrent Power whether this also be benfited

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  24. nirash,
    yes , Torrent Power will be beniffited...

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  25. Raja,
    It is a good thing that many people are venturing in Solar/Wind power, but we should minutely observe which become successfull....
    I have seen people becoming sceptic saying that all companies are trying to give a power tag to take advantage.
    But Power is really needed here but what investor needs to ve vary of is the tag of venturing in solar power or wind power......so be alert on any company saying it is getting in to solar and wind as diversifiaction....

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  26. Hi Rajeev,
    Hope you are keeping well. Have not read any post from you in a while.

    Take care, this world needs more of good hearted / intelligent people like you.

    Best regard
    Dil Se

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