Thursday, October 7, 2010

Nuvia to form JV with Punj Lloyd group co in n-power .......

MUMBAI: Nuvia India Pvt Ltd, a part of Nuvia, a French major providing engineering and technical support for the nuclear power sector is set to form 50:50 joint venture with a Punj Lloyd group company, PL Engineering, a top company official said. “Nuvia India and PL Engineering signed a Memorandum of Understanding (MoU) last week to form a 50:50 joint venture partnership to offer nuclear engineering and support services,” Nuvia India’s Managing Director, Mr Kenneth G Jackson, said here today.
The JV will focus initially on providing services to the growing Indian nuclear sector and will later look at the global market, Jackson said, adding that its target audience will be nuclear power companies.
Given the emphasis on accelerating the civil nuclear power program in India and the political encouragement on international collaboration, Nuvia has committed itself to establish a significant base in India in collaboration with the Punj Lloyd Group to offer its engineering and technical support services and range of specialist products to the global nuclear market. - PTI

My Comments:
This is what I read today in Hindubusiness Line on internet.
Well this says that Punj Llyod is coming in Nuclear Energy.Great news!Yup, great news for Punj Lloyd Group.But what about Punj Lloyd itslef?That joint venture is taking place between Punj Loyd gr and Nuvia Co of France,what stake holders of Punj Lloyd will get?
Nothing?It looks like shareholder of Punj Lloyd will get nothing .
I have seen in past that IVRCL , Simple Concrete and now Punj Lloyd and many others demerged the realty arm or Infra Structure arm of the Co and went for IPO.
That is rediculous.Is this Co taking care of shareholders value?Why can't they gives shares to stake holders and list them?If they will do like that then automatically the value and price will go up of that Co and Mcap will come up.
I don't know why promoters do not think in that way.They need to give shares FREE to Co shareholders and list it on brouses.
I think one should write to SEBI that if a new Co is demerged from the original Co then they have to give all the shares of that demerged Co  FREE to the shareholders.How a Co can demerge an arm from the Original Co and come out with IPO?
I have seen that when promoters sees that the Subsidiary is doing good they demerge it much early and then comes out with IPO! That is not a good corporate gorvernance.Promoters value the Sub much much less then the real value and after that orders and collobaration and joint ventures starts pouring in and that Co becomes a 1000 cr Mcap Co.
I think someone needs to do something about this.......
and BTW, I wrote here very clearly that Sesa Goa and Sterlite Ind will gain from the Cairns Energy takeover and we are seeing Sesa Goa going up.I donno what the analyst calculate the takeovers and how they come on to the conclusion like that giving negative rating for the takeover of another Co.They gave negative rating for Tisco on Corus takeover, they gave negative rating for Tata Motors on LandRover and Jaguar takeover and recently they gave negative rating for Sesa Goa and Strelite Ind and both stock price are moving up.
Well, in past it has happened that takeover misfired and Co went in for a very bad drubbing on brouses due to high cost of price for taking over like Subex Ltd when took over Azure , the move misfired and Subex went in of a pile of debts and to com out from that they went on alloting the Eq and the end result is Subex eq is as big as 58 cr.
But the outcome for takeovers are not always negative.I donno what they calculate and what statistcs they go through and give such negative reports......
I have written many times here that I do not like Co which have big eq.That is a hinderance for the Co when it has to expand the capacity and have to do QIP or Pref allotment.Even for giving Bonus if the eq is big the bonus ratio will be small .With smaller eq the Bonus ratio can be 1:1 or even biggger.



  2. Rocky,

    I feel, since it is a renewable energy company, the future should be good. There is lot of emphasis from govt for increasing the renewable energy consumption in the country.

    Currently, I do not have the articles with me, but I remember reading them.

    Also, since Indosolar is in niche area as established by Moserbear in photo-voltaic cell manufacturing, the company may grow.

    Considering these, I am planing to accumulate at this levels and also at further lower levels.

    Rest is your decision.


  3. Hi rocky, 5 days only have passed since Indosolar's listing. shanti rakho bhai. :D

  4. rocky,
    Indo Solar is a LT story and it is a buy according to me.....

  5. rajeev....any call on indiabulls financials...running a lot recently...rgds.

  6. Hi Rajeev,
    I was going through Parag Parikh's web-site They have come up with Value-Buy Recommendation on Noida Toll Bridge.
    Attaching the link below for their research report.

    Need your opinion on it.
    Can it be a future multi-bagger.
    With Regards,

  7. Hi Rajeev,
    Your article is NOT AT ALL CLEAR
    1)PL Engineering ltd(forming JV with Nuvia) is fully owned subsidary of Punj Llyod Ltd and so it will benefit Punj Llyod Ltd shareholders

    2)Where it is mentioned that PL engineering will demerged from Punj Llyod Ltd????


  9. ramesh,
    Just wait for couple of years and you will find that JV Co between Nuvia and Punj LLyod will get seperated and they will come out with IPO to list it....
    I have written very clearly everything what I see.Have a look at IVRCL from 2003 and Simplex Concrete from 2003....see how the IVRCL Infra and Sinplex Infra get listed....
    Ramesh, please do check IVRCL Infra and Simplex Infra how they get listed .....and whether IVRCland Simplex other Co were already listed when these IPO came.....
    we will discuss after you have a good look at those....
    ramesh,when I write something I am always very very clear in my mind about what I am writing and I think I write in a very simple language for even a simple layman to understand what I mean to say....
    BTW,there is no confusion in my post....according to me

  10. Deepak,
    India Bulls Fin, India BullsRealty, IBsec all are excellent Cos coming from India Bulls.

  11. Vikas,
    If Parag Parikh says Noida Toll Bridge can be a multibagger then who I am to say it cannot?
    PP is a veteran analyst and must have studied the Co much much better then me......
    So if PP says Noida Toll can become a multibagger then it should become....

  12. rajiv bhai
    any view on
    Medicamen Biotech
    BSE: 531146 cmp 28

  13. Hi Rajeev,
    One clarification. PP is such a guy just like RJ & RD, who doesnt believe in giving targets.
    What he says is in this overheated market where value is difficult to find, Noida Toll Bridge is a value-buy.
    He doesnt mention it as a multi-bagger.
    With Regards,

  14. Dear Rajeev sir,

    Posting a part of the research report by edelweiss on PSL taken from their website.


    We recently met the management of PSL Ltd. (PSL) to get an update on the company. Following are the key takeaways of our interaction:

    Order book to gain traction with brighter visibility for new order accretion PSL’s order book currently stands at INR 15 bn (400 KT) with volumes of 200KT for PSL India, 30-40 KT for PSL Sharjah and 60-70 KT for PSL USA.

    Although new order accretion in HSAW pipes has been moderate in FY11 due to slowdown in the oil & gas capex, it has gathered pace for water-based projects, especially from the Middle East; PSL has bids outstanding of INR 40-50 bn for water projects (domestic and overseas).

    In India, PSL has bagged a 30 KT order for the recently bid Dabhol-Bangalore pipeline out of a total order size of 180 KT, leveraging on the strategic location of its Chennai pipe mill. Also, it expects domestic orders from the major pipeline projects (Mehsana-Bhatinda, Mallavaram–Bhilwara, Kochi-Mangalore-Bangalore, Jagadishpur-Haldia), water projects (Jaipur) and RGTIL’s upcoming pipelines in
    East India.

    Moreover, the company has bids outstanding of 400 KT in the US. With order traction from water based projects gathering pace in the Middle East, the management is also planning to double its plant capacity at Sharjah at a capex of USD 25mn.

    Leveraging on strategic advantages and X-80 technology for new orders PSL is currently focused on relocating capacities from its existing facility at Kandla to its mills in Chennai and Jaipur, at a capex of INR 100 mn per mill.

    Also, the company recently received the X-80 certification for its Vizag mill. Lower freight rates due to strategic location of mills, together with cost savings on X-80 pipes (post technical qualification of its mills) are likely to give PSL a competitive edge in bidding for new orders from GAIL.

    The management has guided to EBITDA margins of USD 70-90/MT for PSL USA, USD 60-80/MT for PSL India and USD 80-100/MT for PSL Sharjah. Margins in India would remain at sub USD 100/MT in the near term due to intense competition from other domestic players.

    Corrosion business on the rise; profits in coating to soar PSL’s corrosion business has been growing steadily and is expected to grow 20% Y-o-Y over FY10 as per the management. The company’s project equipment arm is also performing steadily and is currently expecting two orders worth USD 40 mn from the Middle East. Moreover, management has guided for even higher margins in the already
    highly profitable coating business.

    Outlook and valuations: Sector to gather momentum; maintain ‘BUY’
    The pipe industry has been facing lower order accretion for some time. This has impacted the net order book of all pipe companies, including PSL.

    Going forward,we expect orders to pick up as pipeline capex in India fructifies and the oil & gas sector gathers momentum globally. After the recent annual report update, we have revised our earnings estimates and have also introduced fair value for PSL, valuing it at INR 160/share. At CMP of INR 115, the stock is trading at an attractive P/E of 6x FY12E EPS and EV/EBITDA of 6.2x FY12E.

    We maintain our ‘BUY/Sector Outperformer’ recommendation on the stock.

  15. Dear Rajeev,
    your old pick ACI infocom,which was one of your high risk high gain list on Aug 9 2008,has given bumper returns by moving from rs.4 to 40 and now in 25 since last six months.Now the news is ,

    ACI Infocom Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on October 01, 2010, inter alia, to consider the following:

    1. To discuss, Preferential Issue of Shares towards raising of additional capital by the Company pursuant to Section 81(1A) of the Companies Act, 1956 and as per the SEBI (Issue of Capital and Disclosure Requirement) Regulation, 2009 issued by Securities and Exchange Board of India (SEBI).

    2. To discuss sale of business on slump sale basis subject to approval Section 293(1)(a) of the Companies Act, 1956.

    3. To commence business activity into Realty & Construction business.

    4. To appoint directors on the board.

    Sir,do you think preferential issue,sale of business in slump and getting into realty and construction would unlock the value for this stock?


  16. hi bunny,
    that is excellent work.I donno how u find out that.That is an excellent list of penny stocks which I gave.
    Some like XO Tronics(Info) was 4 and it touched 12-13 recently.
    InterLink Petro,Axix IT&T ,EPC Ind,Neo Gem,is also making new highs.
    But that is what I say here.Not all penny stocks will move but even couple of them become 10 bagger which is case in ACI Info, Interlink,Axix then we have enough.....but good diggin....
    I am also seeing report coming out for Rathi Steel now for a much higher targets....

  17. Hi Rajeev,
    I am thinking of buying some ACI at the current price of 25,do you think these announcement which i mentioned could trigger the stock to new heights?

  18. bunny,
    i would not suggest to buy ACI Info.....

  19. Rajiv Ji, I just called the Beckons Industries Ltd. Mohali Office. The lady on phone said, that production of Bio Fuel from Algae hasn't started yet. I am bit confused. Please suggest can I buy some 2-3k at current market price. I can wait for 5-10 years.

  20. GG,
    I said it is a story coming up.I also don't know how much it will be successful.One has to take a call and invest.If comes good it willbe a multibagger...

  21. Sir, What about Punj Lloyd in present circumstances? You have recommended it earlier for Long term buy. Can I enter it now for 5 years time period?