Wednesday, March 17, 2010

PAE old call...& ABC India....

One of the stock that was there on my pick on 2nd March, PAE Ltd......I just saw an interview from PAE's ED& CEO Mr.Pritam Doshi......

I just saw that PAE was in Upper Circuit at 46.60 yesterday and making 52 week high and also saw that my recent pick DHP India also made a 52 week high at 31 which was recomended here at 22!I remember my call on ABC India from my mmb days and someone has bought as well and was asking me here maybe a year or so back that as ABC is not moving at all what needs to be done!and I remember I suggested to hold it as the fundamentals was intact and today I am seeing that it made a 52 week high of RS 91.25......

Here is the transcript.....

Q: There are some developments in your company, you are currently into distribution of solar panels and you are looking to get into installation of solar panels because of which you have converted your associate company into a 100% subsidiary - what is the eventual plan from here on and when would you rollout all of this?

A: Basically we want to start out in Maharashtra, we want to target the mid-market segment which is the 10 kilowatt to 1 MW segment, roof tops, farm houses any sort of companies, businesses that want solar installations or enabling installations on their roof top or in their backyards.
There is a huge market in India and the National Solar Mission provides for higher rates in terms of per unit price that one can generate power and do something called net metering or generate something called feed-in-tariff.
So the plan is for these companies to do the installations for the mid market to begin with in Maharashtra and we are going to do this for the next 12 months or so and build this business up and focus only in this state.
Q: Are there plans to eventually list this other company PAER as well?

A: We don’t know right now. We will see how that goes.
Q: What is the kind of revenue share that you are looking at from this company because there is increasing focus on renewable energy and you were talking about price per unit, so could you give us a ballpark figure?

A: We are targeting Rs 5-10 crore from this business from Maharashtra this year in 2010-11. The business has high gross margins than PAE does. Therefore we thought it makes more sense for us to focus on this business in a separate company rather than do it inside or within PAE.
Q: This solar installation business is a new venture for you, so would you be investing in this and to the tune of how much?
A: We are probably going to invest up to Rs 1 crore at this point to start of with; it’s not a high capex business. It is mainly the man power that we need to get trained and recruit is obviously high quality and we will be mainly investing this money in working capital and building our infrastructure for deployment of installations.
Q: And where would you start the rollout, what are the states you are targeting?

A: It will be only in Maharashtra at the moment: From Vashi, Pune, Kolhapur and Nagpur. We already have locations and establishments in PAE. So we will share the infrastructure that PAE offers in the state.
Q: What is your market share?

A: We will be starting off in this business right now. So it is non existing.

Previous Interview of 3rd Mar'10

Q: Take us through what benefits you directly get, you told us that in any case solar segment forms a very small part of your business just yet, do you benefit from the Budget excise duty cuts at all or do you benefit form the Budget in any way at all?

A: We benefit from the Budget that it opens up a huge market for us in terms of solar panels and our power electronics for the solar market. When it was announced that the Rs 500 crore fund would be allocated towards the Jammu Kashmir and Laddakh region for solar power plants there, so I think that really conveys the national solar mission and puts figure to what’s going to be allocated to the region and that’s going to be a very favorable thing for people like us.
Q: You said it contributes to about Rs 12 or 15 crore which is what 10% of your business now?
A: Actually lower than 10% of our business currently.
Q: What do you see it growing to, say in 2011 or 2012?
A: Shurjo Energy is a solar panel company that we have acquired that should be growing at about 40-50% next year. However, in PAE, we have also building a distribution and service network for solar components, panels and installations, so we believe that that business should contribute about Rs 15-20 crore of our topline next year.
We have also signed a distribution agreement with Schneider Electric which is going to compliment our existing business of batteries and panels to give us the balance of system that is required for any systems integrator to install a solar outlet.
Q: What did Shurjo Energy report as their revenue as of December 31st 2009?
A: Shurjo was not 57% owned by us in December.
Q: So what is the revenue at the moment?
A: The revenue is Rs 9 crore.
Q: What exact revenue you get out of this business because your own margins are about 2% that means you end up getting Rs 7-8 lakh?
A: Basically the product we are in is CIGS which is a photovoltaic product, it's just not silicon based. The material is spray painted on a stainless steel foil, so that is made in India and exported and Shurjo has been exporting for the last 3-4 years. We believe that these low cost panels will become a huge market especially in India and such places where there are demand for low cost solar installations. We are poised for that in terms of the panel range.


  1. Rajeev ji,
    Surya roshini is volatile. Is it stil a best bet for long term.I have 400 shares @60.

  2. Hi Nirash,
    Can i also request you to please fwd the list to me as well please. My email id is


  3. Hi Nirash,
    Can i also request you to please fwd the Detailsed excel list to me as well please. My email id is

  4. Yes Yatheendra,
    Surya Roshni looks good still.....and good bet for LT....

  5. Mr sandeep / Mr Yatheendra

    Forwarded as requested

  6. Mr Rajeev

    Can you suggest whether Sel manufacturing is a buy after its sharp decline in stock price to Rs67/- please advice

    Vishnu R Nair

  7. vishnu,
    i do not track sel maf so no view..

  8. Hi Nirash,

    can you also send me the list at

  9. Hi Naresh,

    Kindly request you to please send me the list too on

    Thanks in advance.

  10. Hi Rajeev, i m holding telecanor global, it is not moving any latest view on it, can i continue holding pl do advise

  11. Dear Rajeev,
    Transport corporation of India (TCI) has been in the radar list of Mr.Damani for a long time. Today, the company announced de-merger of its property holdings. It appears great value for investors with a 3 years horizon. Can this be a multi-bagger?

  12. Hi Sir

    kindly some body throu light about wat excel list people are asking for , by giving their e mail id,
    sir i remember few years back you reco some scrip name which was specialise in make copper gas pipe. in recent some newspaper it was written that in city govt is making mandatory for new bldg to get gas pipe connection. can u throu some light on this sector n scrip

  13. hi,

    i am tracking most of the stocks in an excel.But i cant send to each and every one individually.So if you can registe at

    i can send a common email to all of you.

    Dont worry you will not get any spam emails from me.


  14. mk,
    TCL looks good and I am no match with Ramesh Damani....when he is bullish I don't see any reason to go against his view....but yes, TCI is a LT multibagger in making....

  15. gurvinder,
    There is too much noise coming out from TeleCanor.....if you are not comfortable sell it and swicht over to other stock....
    The trick is selling the laggards and buying new ones which have potentialto give great return...bottomline, u should not get disturb with any stock...if u are going to get disturb then sell those stocks immidiately.....