Wishing you and your family a very happy and prosperous diwali..!!

MULTIBAGGER: Genus Power Infrastructur

India Infoline Picks,

Genus Power Infrastructur : Reco Price Rs. 611.00 CMP: Rs.611.00 (Gain 0.00%)

Genus Power Infrastructures Ltd (Q2 FY08)Q2 FY08 revenues post healthy growth of 29.2% to Rs 1 billion. Lower excise duty, other expenses and staff costs help operating margin expand to 16.9%. Q2 FY08 profits jump 62.8% to Rs 92 million against Rs 56 million in Q2 FY07. BUY with a one-year price target of Rs818, providing 36% upside.

Genus Power Infrastructures Ltd (Q2 FY08)
• Q2 FY08 revenues post healthy growth of 29.2% to Rs 1 billion.
• Lower excise duty, other expenses and staff costs help operating margin expand to 16.9%.
• Q2 FY08 profits jump 62.8% to Rs 92 million against Rs 56 million in Q2 FY07.
• We recommend a BUY with a one-year price target of Rs 818, providing 36% upside.

Result table:
Period to 09/07 09/06 Growth 09/07 09/06 Growth
(Rs mn) % %
Net sales 1,007 780 29.2 1,843 1,290 42.9
Expenditure -837 -659 26.9 -1,540 -1,090 41.2
Operating profit 171 121 41.6 303 200 51.7
Other income 10 6 71.7 14 8 80.2
Interest -61 -48 27.5 -103 -75 37.8
Depreciation -14 -12 13.9 -26 -24 8
PBT 105 66 59.5 188 109 73
Tax -14 -10 40.5 -27 -16 74.1
PAT 92 56 62.8 161 93 72.8
OPM (%) 16.9 15.5 1.5 16.4 15.5 1
Equity capital 123 108 - 123 108 -
EPS (Rs) 7.5 5.2 43.7 13.1 8.6 52.5
Source: Company

Revenues grow 29.2% to Rs 1 billion with enhanced capacity coming into play:
Genus Power Infrastructure Ltd (GPIN) Q2 FY08 revenues grew by 29.2% to Rs 1 billion against Rs 780 million in the corresponding period last year. During the period, meters, projects and inverters contributed Rs 554 million, Rs 353 million and Rs 101 million respectively. During the end of FY07, GPIN enhanced its meter manufacturing capacity from 1.4 million pieces per annum to 2.9 million pieces. The company expects to derive about 33% of its total revenues from its Haridwar facility. With this facility coming on stream, it intends to improve its revenue share from three-phase meters, where realizations and margins are better than conventional meters. GPIN has an order book of Rs 4 billion, which is to be executed over the next two quarters. With the outlook for the sector being robust, we expect the company to witness 55.6% CAGR over FY07-09E.

Lower excise duty, other expenses, staff costs expand operating margin to 16.9%:
During Q2 FY08 the company carried out operations from its Haridwar facility, which qualifies for zero excise duty for a period of 10 years. Coupled with this, GPIN witnessed 570 bps decline in other expenses and 120 bps decline in staff costs. Higher raw material cost by 540 bps in Q2 FY08 offset savings from the above. Operating margin improved by 150 bps during Q2 FY08 to 16.9% from 15.5% in the corresponding period last year. Since the company imports about 10-12% of its raw materials, it gained marginally from the appreciating rupee.

Q2 FY08 profits jump 62.8% to Rs 92 million:
With rising revenues, there was a greater need for working capital as a result of which interest expense was higher by 27.5% during the quarter. Due to robust growth in revenues coupled with improvement in operating margin, GPINs net margin expanded by 200bps to 8.6% in Q2 FY08. Q2 FY08 profits jumped 62.8% to Rs 92 million, posting an earnings of Rs 7.5.

Mobix JV – A gateway to the high margin Latin American market:
GPIN has entered into a 50:50 joint venture with the Brazilian telecom firm Mobix for the manufacture of electronic meters. Through this tie-up, GPIN will sell its products with communication technology being provided by the partner. The JV requires an investment of US$ 15 million, of which US$ 9 million will be raised through debt from banks in Brazil and the rest through equity by both firms. The JV will have an installed capacity of 1mn meters, which is expected to be commissioned by end of FY08. With usage of electronic meters becoming mandatory in Latin America, just as in India, this JV will open up huge opportunities for the company. Since it will be the pioneer of the product in the region, we believe margins will be better than they are here.

GPIN is targeting developing countries where electricity reforms are under way, which will help it to increase the contribution of exports to total revenues. Installation of AMR meters coupled with services like energy auditing and selling prepaid meters will be major drivers for the JV. GPIN has already made significant inroads into markets like Iran, France, Jordan, Turkey, Brazil, etc.

Haridwar facility enjoys zero excise duty for 10 years:
GPINs Haridwar facility, its second manufacturing unit (first being in Jaipur), enjoys 16% excise duty exemption for a period of 10 years. The Rs 260 million Uttaranchal plant commenced operations for meters and inverters in April 2006. With this expansion, the company’s meter capacity increased to 2.9 million pieces per annum from 1.4mn pieces, enabling it to undertake more orders for both single-phase and three-phase meters.

Going forward, the company intends to relocate its single-phase meter manufacturing base to Haridwar and continue its three-phase manufacturing at its existing facility in Jaipur.
Newer products and newer market will lead to margin expansion:

GPIN undertakes continuous research and development activities not only for developing newer products but also for making its existing products technologically superior. This allows it to charge a premium over the conventional meters. Coupled with the sale of meters the company is also into the metering business, i.e. providing services like meter reading, collection, etc. Greater focus on sale of three phase meters, increasing production from its Haridwar facility, appreciating rupee, the Latin American JV and economies of scale should enable operating margin to expand.

Newer products, market and margin expansion will result into 85.8% profit CAGR, BUY with a price target of Rs 818 Implementation of APDRP and RGGVY schemes makes the outlook for the sector robust, resulting into higher demand for meters over the next couple of years. Coupled with this, upgradation of existing substations and setting up of new ones will benefit the company’s projects division.

With robust growth opportunities in both domestic and international market, launching of newer products and its Latin American JV, we expect GPIN to register 55.6% and 85.8% revenue and profit CAGR over FY07-09E respectively. In order to fund this growth it has done a preferential allotment to the promoters and some strategic investors. Despite this dilution we expect benefits accruing from the above will be greater than the effect of dilution. We recommend investors to buy with a one year price target of Rs 818, an upside of 36%.

At the current market price of Rs 611, the stock is trading at about 10.3x its FY09E earnings of Rs 58.4. We maintain BUY with a one-year price target of Rs 818, implying 36% upside.

SEBI announces new P-note policy

M Damodaran, Chairman, Sebi, while announcing the decision on the new policy on P-notes said that this was not a board meeting to decide on a single issue.



Speaking to mediapersons after the Sebi board meet today, he said the stock exchanges would be mandated to constitute a committee chaired by a non-executive member of a concerned exchange to focus on surveillance. This, he feels, would make the market a safer place for investors.



The meet also saw new policy announcements like clearing of Sebi's proposal to have an SME exchange.



But the most awaited decision on P-notes was that the board has decided that FIIs and sub-accounts shall not issue P-Notes as underlying as derivatives.



"All current position to be wound up within 18 months. Further issue of PNs by sub-accounts will be discontinued with immediate effect," Damodaran said.




Highlights of M Damodaran's announcements at the Sebi Press Conference:



Sebi board cleared proposal to have a separate exchange for SME Segment
Date of calculation of AUC will be Sept 30
Sub accounts not to be allowed to issue PNs
PNs can't be issued with ODIs as underlying
FIIs shall not issue P-notes as underlying as derivatives has been approved
Current position to be wound up within 18 months
Board has decided further issuance of P-notes by sub accounts of FIIs to be discontinued with immediate effect
Sub accounts issuing P-notes have applied for registration of FIIs: Sebi
Until a final decision is taken on their being FIIs, sub accounts can continue as normal
Both proprietary and corporate sub-accounts will be allowed to do business till final decision is announced.
Excerpts from the meeting:



On market surveillance



“One of the issues that Sebi focuses on and is expected to focus on is surveillance. As it is customary in all our board meetings to report on surveillance activities, observations, conclusions, action taken and thereon was placed before the board and during discussions the prospect and the formal decision is been taken based thereon that the stock exchanges will be mandated to constitute a committee of board that will focus on surveillance.



This will be a committee chaired by an independent member, a non-executed member of the board of directors of the concerned exchange. We believe that broad level attention through the focused efforts of specially constituted committee of the board will enhance surveillance and ensure that it is consistent with Sebi’s interest and with the intentions and interest of the market place. The market will become a safer place for investors and that is one of the decisions that the board took today.”



"Some of you are aware that in order to liquidate the large pendency in regard to enforcement proceedings, we had introduced a system of persons applying for consent orders and cases getting disposed from the basis of consent orders.



The board took note of the progress and felt that this initiative was one that will be good for the system, not just for the clearing of the backlog, but also to ensure that our attempts at proceedings in the normal manner, throwing the book at offenders, will be confined to persons whose acts of omission or commission have largest systemic implications and the lesser matters will be not allowed to clog the pipeline.



On separate exchange for SMEs



Some of you are aware that for some time, the government, SEBI, other proponents of the SMEs have been talking in terms of enabling SMEs to access risk capital better than they have been enable to do so far. After discussions, the board cleared SEBI’s proposal to have a separate exchange for the SME segment. Consequently, the policy framework could be written off and persons interested in setting up an exchange dedicated to SMEs would be invited to come up with their proposals and thereafter.



One proposal from among those would be subject to eligibility criterion, to be picked up for enabling the setting up of the exchange."



On implementation of recommendations



We are also aware that, the corporate bond market has been a relative non-starter for a long time in India. This in turn has impeded the development process because it has not enabled persons to access long-term money for projects that need long-term money.



As some of you are aware, in April, following Sebi’s clearance, one of the exchanges had set up a reporting platform for trading on exchanges. Another exchange had done that a little later. Thereafter, we had put in place a trading platform and I am happy to report that in the last few months, we have witnessed a significant increase in the volume of trades done on the exchanges.



If you visit the Sebi website, you will find that as far as Sebi is concerned, most of the actions that arise from the report of the committee that the government accepted - the recommendations of the report - have been implemented by Sebi. We believe that the system is on course for the healthy development of the corporate bond market.



On participatory-notes:



I have seen reports in some sections of the media not too many, that decisions regarding an instrument known as participatory notes might not be taken at today’s meeting. I am sorry to disappoint those that had written those reports.



A number of decisions that needed to be taken in the context of a draft proposal that we had put out on the 16th of this month have been taken. I will take you through some of that fairly quickly. As I mentioned, in respect of this one item, we would be distributing a press note so that accuracy is ensured in what goes out to people in the marketplace.



The decision for FIIs and the sub-accounts shall not issue participatory notes with underlying hedged derivatives, has been approved by the board. The board has, also approved the related decision that the current decision would be wound up over 18 months.



This is to be read along with the clarification that we had issued a day after some people felt that the draft proposals did not have the clarity they needed to have on this particular matter. The board also decided that further issuance of participatory notes by the sub-accounts of FIIs would be discontinued with immediate effect and they would be required to wind up the current position over 18 months, during which period SEBI would review the position from time to time as had been indicated in our draft proposal.



As some of you are aware after we put out our draft proposal, sub accounts of FIIs, sub accounts that were in the business of issuing P-notes, have applied for registration as FIIs. Some have already been cleared. Some are in the process of being cleared and in the case of both -and I want to stress this, both proprietary and corporate sub accounts that were used for this purpose, the transition arrangements envisage that until a final decision is taken in regard to their registration as FIIs, they would be allowed to continue with the business that period is not a long period because I mentioned we have started clearing some of the applications; some might take a little longer. I must also mention that we have seen a number of reports from time to time even after I did a conference call providing case-wise detail.



On Assets Under Custody



Even after the conference call, providing case-wise details of how much time we took, even after that, stating that SEBI takes a few months or a few years, I hope that hereafter talk will be taken of facts and not of opinions put out by people whose incomplete applications might not have been cleared by us.



We cannot generalise the time taken on the basis of incomplete or incorrect applications. We have always maintained that correct and complete applications will be processed quickly. I believe in the recent past, we have given evidence of such processing and decision.



There is a question regarding the concept of AUC. Arising out of a proposal in the draft note, which the board approved today, that those FIIs with a notional value of PNs outstanding as a percentage of the AUC in India of more than 40%, shall issue PNs only against cancellation/redemption/closing out of the existing PNs of at least equivalent amount.



We have been receiving monthly reports from custodians in respect to the AUCs and for the purpose of these decisions, the AUCs will be defined until any changes made in the future, they will be defined on the same basis, as the custodians presently understand.



There have been questions regarding the dates, which will be taken into account for the purpose of cut off. The cut off for the purpose of calculation and giving effect for the purpose of operationalising the decision.



Questions at the presscon:



Q: On 40%?



A: Only a handful of people are above 40%. We arrived at 40% by looking at numbers that were available with us based on the reports and it will not be hugely disrupted. That is why we have said that those above 40%, if the issue is something new must all set it by closing out what they have. So that they remain in terms of nominal value wherever they are at this point of time.



Q: On existing position?



A: We have said that there will be no more P-Notes issued with derivatives. We have also said that those who are out there will have 18 months time to unwind.



Q: On proprietary and sub-accounts?



A: What we have initially told was that there were some FIIs that were issuing PNs directly out of their own accounts and some had setup proprietary sub-accounts from which PNs were being issued. After we announced that proprietary sub-accounts would be allowed, the facility of transition until they register and we wanted them to register and I am happy to report that they have all put in their applications.



Some people told us that we do this business entirely out of dedicated corporate sub-accounts and we need to be treated similarly. The board considered that today and said whatever time it takes for transition, both proprietary and corporate sub-accounts would be given similar treatments which is that they will continue to do the business that they were setup to do until a decision is taken on their application for registration as an FII.



If somebody had not applied, that sub-account could not have issued anymore, but since all these accounts have applied, there will be a period of transition, hopefully very short. For some of them there is hardly any transition left, because the applications came in a day after we had suggested this. We had taken decisions on some of them already, so there is hardly any transition for them. For the others where it might take a few days more, there is no need to stop doing business now and start afresh after the new 'avtaar' comes into being. But this is only for proprietary sub-accounts and corporate sub-accounts that have put in their applications, that’s the regime. So we are treating both these similarly.



Q: On provident funds, endowments?



A: Let me read out the categories Pensions Funds, Foundation, Endowments, University Funds, Charitable Trust of Societies. This is the category that is unexceptionable, set up for good purposes and whose quality is consistent with our expectation.



Q: On AUC - is there any significant difference when we calculate this with September end numbers?



A: I haven’t compared the numbers; I have only given you a date with reference to which it is logical to do that. I haven’t compared the numbers and looked at whether the numbers are more significant. Numbers move significantly when markets move significantly and we have seen that in recent times when markets have moved significantly even intra-day. So you might get numbers that you looked at with reference to August 31 being significantly different than September 30.



Q: AUC will be calculated on mark to market basis?



A: AUC will be calculated in the manner in which it is been calculated until now. It’s not a new phenomenon.



Q: Can you tell us about your new products?



A: There is a Sebi committee, the Rammohan Rao Committee on derivatives. When we will get committee’s recommendations, we can take a call on which one to accept and implement on. Today I cannot comment on any specific product because I do not have their recommendations.



Q: You have said that you have twenty applications with you and you have cleared a few of them, can you tell us how many have you cleared so far and how much time you will take to clear the remaining applications and is there any possibility of you clearing all the applications according to your criteria?



A: Securities market regulation is not a Twenty20 match where score changes per over. This is a process, you will have to wait for some time. I think in one week’s time we can take a decision on all the remaining applications, but I cannot tell you whether all applications will get cleared.



Q: To my knowledge the regulations relating to P-Notes are much older because at that time also there was a trend that anybody came on the disclosures?



A: Whatever is stated in the regulation has been sought to be implemented without any dilution. In between there was a dilution, which is that registered entities that were unregulated were also allowed to come in through P-Notes into the Indian market. That has been discontinued, it will be only regulated entities going forward.



Today there are some categories of people that can invest in the Indian markets directly and there are some categories of people that cannot. Our medium-term and long-term view of the market is that, it should be a market in which anyone wanting to invest should be enable to invest directly. And that is what I meant, when I said increasing access. Allowing access to such people today do not have access to our markets directly. That’s our goal we will get that through series or measures overtime. And the entire regulatory framework regarding FII’s and others is being re-examined in that light.



Given that the board meeting took place so soon after our draft proposals had been put out, we did not have time to address all the long-term issues, so going forward some of the them will get addressed.



There are two ways in the long-term. Going forward, there should not be different categories with different modes of access, with different conditions of entry or access or all that. We will work towards simplifications, which will lead to increasing access. Access to an increasing number of investors those who today cannot access our markets.



Q: Can you define regulated institution?



A: The regulated institution is an institution that is regulated in its home country by the concerned sectoral regulator depending on which sector that entity belongs to. If it is an entity that the security market regulator regulates that would regulate. If it is a bank we would look at banking regulator regulates that and if it is a insurance company we would look at whether the insurance regulated that company, but it would be something that is accountable in its home jurisdiction to somebody like us, so that we can draw comfort from that fact.



Q: Would it be the home country or the place where they are registered which would be the jurisdiction for them?



A: The place where they are regulated.



Q: Regards to the proposal to start a platform for SME, can we know whether there will be only one exchange or there can be more than one?



A: In the long run, depending on the experience of one exchange, there could be more exchanges. Ultimately it’s a question of how many the market needs? How much business is there with these exchanges etc? We believe there's considerable learning for those who are setting up this exchange as well as products and service and therefore it has been sighted whether it is one person or one applicant from among those who've applied will be permitted to set it up.



We will study it after two years or 2.5 years of the functioning of the exchange, because there are issues that we need to address. The basic issue is, how do you allow SMEs to access risk capital? Both the main platforms of the NSE and BSE have certain cutoff limits. Therefore some of these maybe knocked off at the threshold itself. They will be not able to get it there. We’ve seen another jurisdiction that there are separate exchanges for SMEs and we do not want Indians in the SMEs to indefinitely go outside India and look for capital raising there.



We need to look at what are the entry levels stipulations are in terms of compliance taking into accounts the cost. There might be cost that cannot be afforded by small entity therefore if you allow on day one the multiplicity of exchanges to come up, we will have the same situation that we had with the regional stock exchanges, because then one market will get fragmented among more than one exchange, none of which will remain healthy.



Once the SME segment becomes stronger, if there is a market case for more than one, I am sure the market itself will find a response backstage. We do not want in the long run a monopoly, it is not that we are stipulating a monopoly, but we are saying that let us see, there is learning in it, going forward we will see. The market will see whether it needs one.



Q: We had OTC Exchange of India in the past, it failed. So, what are the lessons learnt?



A: Well I think the press conference today really might not have the time to discuss all the lessons that we have learnt. Clearly lessons have been learnt and those that are now seeking to setup exchanges, would have also looked at why certain exchanges did not take off, and see that those mistakes are not repeated. But I think that will merit a whole new discussion entirely.



Q: On money invested in Indian stock markets?



A: We have always maintained that money that comes into the securities market comes through bank accounts. Banks have very detailed KYC (know your customer) norms and they are expected to know their customers, know which money is coming from where, into which customers account. Money that comes into our markets comes through banking channels. Number two, every intermediary that an investor deals with, is expected to follow KYC norms whether it is the depository participant or the broker or whoever else.



So there are several levels of checks to see that we get some idea of whose money is coming to the market. That is the detail. The broader point that I want to mention to you is, we do not have any evidence that money of the kind of origin that you mentioned has come to our markets.



The second that I want you to remember is that all the problems of the world can’t be tackled through securities markets regulation. There are other regulators, other agencies for enforcement who had to adjust some of those issues. The security market regulation is not solution to every problems.



Q: Now we are back to 2004 with reference to entering norms for FIIs through PNs. What happens to those entities that are already there?



A: The 2004 regulations say that these instruments shall be issued only to regulated entities and it also says that such instruments as have been issued to unregulated entities, should be found up within a period of five years. The five years is not yet over, there is about 16 months and a few days left from my calculation.



I think people who need those regulations and are in the market place, should use that period to comply strictly with the regulations.



Q: How many letters of intent have been received so far and the time for that? Also in the case of the regulation of Mauritius-based equities what regulations should be compliable?



A: As far as we are concerned, Mauritius is one among many countries from where people invest in the Indian markets. People go to Mauritius, because Mauritius presently has some advantages. But as I have mentioned, we can’t make solutions for all problems including tax reform measures in securities market regulation. So we are not treating Mauritius as a separate category in writing securities market regulation.



More to come...

IPO OF RELIANCE POWER LTD

: The Note on Reliance Power :

Editors Note:

1. A note is being circulated against the proposed mega issue of Reliance Power.

2. This note can be the handi-work of the industrial and political enemies of the Reliance ADA group.

3. There have also been rumours that the RNRL, Reliance Energy, Reliance Capital and Adlab stock prices have been rigged by the PN route and last weeks PN changes were proposed to corner the ADA group, and heavy unwinding has ensued in these 4 stocks.

4. Whatever be the truth will come out in the open in the course of time.

5. But investors must take their own call and avoid the issue if these allegations appear genuine. There is no force to greed or to fear, these are personal choices.

so we are giving here some facts collected frm differ sources



A swindle is being perpetrated by the promoters of Reliance Power Limited on the 'would be investors', to enrich themselves at the expense of gullible public. SEBI Guidelines are being subverted in a planned and shrewd manner.

REFORMS HAVE LED to a spectacular improvement in economic performance in India. Government target of reaching Gross Domestic Products (GDP) growth of 10 per cent is achievable if economic reforms continue.

India is definitely emerging as the first choice amongst investors, including domestic investors, foreign investors, global financial institutions and international banks, as the economy is booming and the celebration is on an international level. As results, everyday
unlisted companies are trying to float IPOs (Initial Public Offerings).

India's top thirty companies are responsible for the noticeable jump in Sensex and we are proud of them. But has anyone ever tried to sneak a look at the workings in the background of the companies, which file the prospectus with SEBI, seeking an approval for floating
their IPOs?

Recently, a swindle is being perpetrated by the promoters of Reliance Power Limited (RPL) on the 'would be investors' in the public issue of the company, to enrich themselves at the expense of gullible public. SEBI Guidelines are being subverted in a planned and shrewd
manner.

According to SEBI's (Securities and Exchange Board of India) guidelines, the promoters of unlisted companies (contributing their mandatory promoter's contribution within the preceding one year) have to contribute in cash at the IPO price, so that the promoters take the same financial risk as the IPO investors.

The issue in reference is the minimum 'promoters' contribution' to be brought in by the promoters - Reference clauses 4.1 to 4.6 of SEBI (Disclosure and Investor Protection) Guidelines, 2000. As per clause 4.1.1, the promoters shall contribute at least 20 per cent of the post issue capital, in a public issue by an unlisted company.

As per clause 4.6.2, the promoters have to contribute this 20 per cent at least at the IPO price, if they have contributed this 20 per cent during one year preceding the public issue.

SEBI guidelines have been blatantly subverted to perpetrate deception on the prospective investors in the IPO of Reliance Power Limited.

Anil Ambani decided to float an IPO of Reliance Power Limited in last week of July 2007. Without risking his money in the project, he still wants to retain majority control in Reliance Power.

The group had an existing shell company called Reliance Public Utility Private Limited (RPUFL). RFUPL, at that time, had a paid up capital of Rs One lakh. The authorised capital of RPUPL was increased to Rs 1000 crores by a resolution dated July 30, 2007.

Anil Ambani's personal investment company and Reliance Energy Ltd (controlled by
him) invested Rs 500 crores each, in the equity share capital of RFUFL on August 3, 2007. RPUPL is still a shell company with just Rs 1000 crores of share capital and Rs 1000 crores investment (The Rs 1000 crores investment will naturally be made only in Anil Ambani's group of companies. Thus no money would have gone out of the group).

Simultaneously, RPUPL and RPL pass the necessary Board for merger of RPUPL into RPL. Both the companies file a scheme of amalgamation in the Bombay High Court in the first week of August 2007, that is, immediately after infusion of Rs 1000 crores in RPUFL.

The rationale of the merger, as stated in the Scheme of Amalgamation was "RPUPL has
put in considerable efforts in acquiring necessary technical and manpower skills which are ancillary to the business of RPL. RPL can take benefits of this specialised skill sets and technology available with RPUPL to undertake mega power project and implement them more efficiently and successfully, " (one is unable to understand how the shell company, having only One lakh capital till July 31, 2007, acquired the skill sets to implement a mega power project.

In fact REL, which the one of the largest power companies in India, was already a shareholder in Reliance Power and Reliance Energy's technical experience have been used by Reliance Power to bag mega power projects).

The High Court of Bombay approved the merger on September 27, 2007. The order was filed with ROC on September 29, 2007, making the merger of RPUPL into RPL effective from that date.

On September 30, 2007 RPL allots 250 crores shares of Rs Two each to AAA Project Venture Private Limited and REL, who are the erstwhile shareholders of RPUPL.

As a result of this ploy, Anil Ambani and REL both acquired, on September 30, 2007, 250 crores shares of Reliance Power each for a consideration of Rs. 1000 crores only. This was also infused into RPUPL only on August 3, 2007, within one year prior to public issue.

These 250 crores shares of Reliance Power which, have been allotted to Anil Ambani's personal investment company and REL pursuant to the amalgamation, apparently becomes eligible for exemption under clause 4.6.4 of SEBI (DIP) guidelines with respect to promoters
contribution.

Thus, Anil Ambani, as the promoter of Reliance Power, has avoided investing a huge amount as promoter's contribution at the IPO price and passed on the entire risk of the project to the prospective investors to his personal gains.

It is apparent that the High Court was not aware of the ulterior motives behind the merger of RPUPL, a shell company into Reliance Power. The merger has been sanctioned by the High Court on the basis of the facts put before it and since the shareholders of both RTUPL
and RPL would have approved the merger. The shareholders of both Reliance Power and RPUPL are Anil Ambani's investment companies and a representative of Reliance Energy.

Reliance Energy owns 50 per cent of Reliance Power. This merger proposal has never been taken to the shareholders of REL, who would have presumably questioned the need
for and looked into the merits and demerits of the merger of a shell company into RPL.

Press reports state that Reliance Power plans to raise approximately Rs 8000 crores by issuing 130 crores equity shares of Rs Two each.

Thus the approximate issue price per equity share is expected to be Rs 60 per share. Ambani, as one of the promoters for his acquisition of 113 crores shares (10 per cent of post issue share capital as per the prospectus) at a price of Rs 50 per share, should have invested Rs 6780 crores.

Against this, by misusing the exemptions in the SEBI guidelines intended for genuine merger, he has acquired this 10 per cent by spending only Rs 690 crores. In fact, the subscription by Ambani of Rs 8 crore share at the IPO price is an eyewash to divert
public attention.

Thus, at the expense of prospective investors, Ambani will gain approximately Rs 6000 crores (assuming the IPO price to be Rs 60 per share). In fact, as per clause 3.7.1 (i) SEBI guidelines, a company cannot make a public issue of Rs Two face value share at the price less than Rs 500 each. Hence, in case Reliance Power issues the shares at the price of Rs 500 per share, Ambani will gain upwards of Rs 55,000 crores at the expense of the future investors of Reliance Power.

Thus the total loss to the prospective investors in Reliance Power will be Rs 12,000 crores (assuming IPO price to be Rs 60 per share).

If the IPO price is Rs 500 as mandated by SEBI regulations, the loss to the prospective investors will be Rs 1,10,000 crores. In fact, the loss will be to the general public who will invest in the public issue, and also to the public financial institutions and banks, who
will invest common man's money in this public issue.

The above facts clearly point out a fraud being perpetrated on the investors and SEBI should immediately stop the public issue and not approve the prospectus. If SEBI approves this prospectus, it will be a disservice to the future investors in public issues and SEBI would
not be discharging its responsibilities in a proper manner. It will set a dangerous precedent. From now on, every promoter in India would subvert SEBI (DIP) guidelines in the same manner.

If SEBI approves this prospectus, they would be unable disapprove any public issue made in future, in the above manner. In fact, if this public issue is allowed, it may raise serious questions on the effectiveness of the regulatory framework of capital issues in Indian capital market.

The Department of Company Affairs should not remain silent spectators in this issue and should make use of all the powers to stop this fraud against poor gullible prospective investors in Reliance Power.


Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.

Nothing in this article is, or should be construed as, investment advice.

SURE SHOT PROFIT CALL, MKT GO WHTEVER WAY

FRNDS BUY 1 LOT OF 5300 CALL AT 155 RS N 1 LOT OF 5300 PUT AT 150 RS, TOTAL INVESTMENT WILL BE 305 RS PREMIUM, OUR TGT ARE 350-400-450-500-550-600++
BOOK ACCORDING TO UR POCKET SIZE N UR WISH, ALL THOUGH REMEMBER AS USUAL WE ARE NT ADVISING SL.. WE ARE HEDGED BOTH WAY, SO DNT NEED THT WAISE BHI..

WE STARTING OUR SMS SERVICE FRM TODAY

MANY OF OUR FRNDS WERE REQUESTING US ON REGULAR BASIS TO START SMS SERVICE, AS THEY NT ABLE TO SIT ON YAHOO DURING TRADING HOURS BCOZ OF JOB, BUSINESS ETC..

SO WE HAD STARTED THIS SERVICE FRM TODAY, THOSE WHO ARE INTERESTED TO JOIN US AFTER THIS NEW SERVICE CONTACT ME ON 9928856677 OR KHICHDITIPS@GMAIL.COM

THANKS FOR UR SUPPORT

REGARDS

AJAY CHOUDHARY

OPTION CALLS

THIS MONTH WE ARE NOT ABLE TO FINDOUT OR GUESS ANY DIRECTION ABT MKT, WE CNT PREDICT WHT WILL HAPPEN 2 DAYS AFTER, SO IT HARD TO SAY WHT WILL HAPPEN TILL EXPIRY, MKT IS BULLISH, SO WE SHOULD BUY, BUT IT IS OVER BOUGHT N POLITICAL REASON WE SHOULD SHORT, SO IT ALL CONFUSING, TILL NOW EVEN AFTER FALL OF NEAR 200 NIFTY POINT FRM DAY HIGH TODAY, THERE IS NO DISCOUNT IN NIFTY, MEANS MOST OF THE PEOPLE STILL BULLISH, SO THE PREMIUM IN OPTION CALLS ARE VERY VERY HIGH, THT WHY WE ARE AVOIDING ANY OPTION CALLS THIS MONTH.. I HAD WRITTEN THIS THREAD BCOZ SOME PEOPLE ARE CONTACTING ME AGAIN N AGAIN FOR OPTION CALLS..

ALL THOUGH WE HAVE 1 RISKY LOTTERY CALL, WHICH DO HAVE CHANCE OF BEING ZERO N BEING DOUBLE ALSO.. LOT SIZE N INVESTMENT IS SMALL, SO IF ANY1 INTERESTED CAN TRY..

1. BUY NIFTY 5450 CALL AT 23 OR IN DIPS, IT CAN BE ZERO TILL EXPIRY N IT CAN BE DOUBLE TOO, OUR TGT IS 50++, ALLTHOUGH WE HAD GIVEN THIS CALL TO OUR PAID CLIENT IN NOON AT 18-20 , BUT OTHERS CAN ENTER AT THIS LEVEL ALSO..

WE WILL SEE FASTEST 2000 VERY SOON

BUY NIFTY N NIFTY 5200 CALL AT 140 N ON EVERY DIP WTH 5085 AS CLOSING STOPLOSS FOR TGT 5300-5350-5400-5500 N NIFTY 5200 CALL TGT 210-280-350.. CHEERS

BEST STOCK FOR THE RALLY ARE WHOLE RELIANCE GROUP, DLF, MCDOWELL, TATAPOWER N SBI ETC..

CMP OF THESE STOCKS ARE

REL 1449
RNRL 93.9
RCOM 643
RELCAPITAL 1813

RELIANCE IND 2395
RPL 159.55

DLF 892
UNITECH 328
HDIL 665
GMRINFRA 181

NTPC 217
JPHYDRO 78
TATA POWER 1030

SBI 1908
IDBI 152.5

MCDOWELL 1785
APTECH 397.5

BANKNIFTY 8097.5
CNX IT 4920
NIFTY 5210

I HAD GIVEN RATES OF THOSE STOCKS WHICH ARE LUKING GUD TO ME, WE CAN SEE 2 TO 10% INCREASE IN ALL THESE SHARES FRM THIS LEVEL.. HAVE EYE, MORE DETAILS TO PAID CLIENTS ONLY !!

SUPER DUPER PROFIT OF 242% IN SEPTEMBER OPTION CALLS

TODAY SEPTEMBER SERIES EXPIRED , SO WE ARE UPDATING RESULT OF OUR OPTION CALLS HERE, AS WE SUGGEST TO BUY 2 LOT IN ALL CALLS N TO SELL 1 LOT ON MONEY DOUBLE, SO OUR INVESTMENT COME BACK IN HAND N HOLD OTHER LOT TILL EXPIRY..

1.REL 800 CALL WAS GIVEN AT 30 RS, 1 SOLD AT 60 N OTHER TODAY EXPIRED AT 317 RS, BUT WE BOOKED 2ND LOT AT 110 ONLY, BCOZ OF TO MUCH VOLATILITY IN REL, N WE WERE NT INTERESTED THT U TAKE ANY OF THE RISK. REL GIVEN PROFIT OF 110*550=60,500 RS

2. RELCAPITAL 1230 CALL WAS GIVEN AT 52, SOLD 1 LOT AT 104 AS PER OUR RULE N 2ND LOT TODAY EXPIRED AT 254 RS, BUT WE BOOKED 2ND LOT AT 190, BCOZ OF VOLATILITY, RELCAPITAL GIVEN PROFIT OF 1,04,500 RS.

3.RELIANCE 2010 CALL WAS GIVEN AT 39, SOLD 1 LOT AT 78 N 2ND LOT TODAY EXPIRED AT 208, GIVING PROFIT OF 31,200 RS.

4. SBI 1620 CALL GIVEN AT 60 RS, SOLD 1 LOT AT 120 N 2ND LOT TODAY EXPIRED AT 260 RS, GIVING PROFIT OF 65,000 RS

5. HINDUNILEVEL 210 CALL WAS GIVEN AT 4, BOOKED 1 AT 8 N 2ND LOT EXPIRED AT 8.9 RS, GIVING PROFIT OF 8,900 RS.

6.IDBI 125 CALL WAS GIVEN AT 7, SOLD 1 LOT AT 14 N 2ND LOT TODAY EXPIRED AT 26.7, GIVING PROFIT OF 64,080 RS.

7. TATASTEEL 740 CALL GIVEN AT 13.5 RS, SOLD 1 LOT AT 27 N 2ND EXPIRED TODAY AT 45 RS, GIVING PROFIT OF 30,375 RS.

8. JPHYDRO 50 CALL WAS GIVEN AT 4.25, 1 LOT SOLD AT 8.5 2ND LOT EXPIRED TODAY AT 26.85, GIVING PROFIT OF 1,67,812 RS

9. IDFC 130 CALL WAS GIVEN AT 5, SOLD 1 LOT AT 10 N 2ND LOT TODAY EXPIRED AT 10.75, GIVING PROFIT OF 31,712 RS

10. RPL 125 CALL WAS GIVEN AT 4.75, SOLD 1 LOT AT 9.5, 2ND LOT EXPIRED TODAY AT 25.95 RS, GIVING PROFIT OF 86,932.5 RS

11. NTPC 185 CALL GIVEN AT 6.5, SOLD 1 LOT AT 13, 2ND EXPIRED AT 8.95 RS, GIVING PROFIT OF 14,543 RS

12. GMR 840 CALL 1LOT GIVEN AT 35 RS, EXPIRED AT 11.65, GIVING LOSS OF 23,350 RS

WE HAD GIVEN LEVEL TO BUY CALLS N TOLD TO BUY THEM BELOW THOSE LEVELS, IF SOME1 NT WAITED FOR BELOW N BUY AT GIVEN LEVEL THN ALSO INVESTMENT OF ALL CALL IS 2,65,225 RS N TOTAL PROFIT IS SUPER DUPER 6,42,205 RS MEANS PROFIT OF 242%..

IT NT RANING, IT FLOOD OF MONEY I THINK.. ENJOY WTH US..

1ST TIME I M ASKING U ALL COMMENT N GIVE UR VIEWS ON THIS PERFORMANCE PLS..

WWW.KHICHDITIPS.BLOGSPOT.COM

MULTIBAGGERS : TAMIL NEWSPRINT

Ambareesh Baliga, Karvy Stock Broking

Tamil Newsprint : Reco Price Rs. 100.70 CMP: Rs.103.75

TNPL is poised to tap growth opportunities in the paper industry with its capacity expansion. Higher volumes, low cost of pulp and better realisations are expected to the growth in operating profits and the stock can be accumulated at current levels with a 12-month target price of Rs 150.

TNPL (Rs 100.70)

TNPL is poised to tap growth opportunities in the paper industry with its capacity expansion which would assist the company tide over the cost pressures that the industry is facing. Better price realisations and higher volumes would aid in revenue and EBIDTA growth. With its expansion, which will hike its capacities to 3.65 lakh TPA with expected capex of Rs 6800 mn, this incremental capacity will come on stream by September 2009. This capex will be funded from Rs 1800 mn from internal accruals & the rest by fresh debt.

Capacity Expansion

TNPL is poised to tap opportunities with its plans to expand capacity from 2.3 lakh tpa to 3.65 lakh tpa with the Paper industry is likely to maintain steady growth of 6%. Demand for duplex boards, copier and coated grades of paper is likley to contibute a large part of this growth

Change in product mix

The company has been shifting its product mix in favour of the higher value add branded copier paper. Branded copier paper, on an average enjoys a 10-15% premium over prices of creamwove paper. Production of branded copier paper has registered a growth of 32% over a four-year period on a CAGR basis. The favourable mix towards branded copier paper would deliver better margins.

New Ventures – Cement Plant

TNPL plans to set up a mini cement plant using the waste products generated from its paper mill as a raw material. TNPL will set up a cement plant with a capex of Rs 450 mn adjacent to its paper factory at Kagithapuram in Karur district. The cement plant with a capacity of 400 tonnes a day would process waste lime sludge and excessive fly ash from the paper plant and is scheduled to get commissioned by March 2009. About 30 acres of land has been earmarked for the plant within about 780 acres owned by the company near Karur. The plant will initially manufacture Portland cement varieties and could get into production of special varieties of cement in phases.

IT Park

The company also proposes to construct an IT Park measuring an office area of 4 lakhs sq. ft. in a vacant land of the company.

Wind Farm to control power costs

TNPL has completed its Wind Farm expansion to 35.5 MW, which will help control its power costs in a regime of increasing pulp prices. TNPL has applied for Carbon Credit registration. It has uptil now cumulatively accumulated 42000 CER (certified emission reductions) for the last 3 years, 14000 CER per year. Income from Carbon Credit will be realised in FY08.

Investment for farm initiatives

TNPL is investing in Farm initiatives to secure relationships with farmers & also, to own the farm assets. The company expects full benefits of such an initiative to start coming in from financial year 2010 onwards.

Outlook & Valuations

The demand for paper is rising and the prospects appear good for the industry. Higher volumes, low cost of pulp and better realisations are expected to the growth in operating profits in FY08 and FY09. We expect the company to report earnings of Rs 15.8 in FY08 & Rs 19.1 in FY09E and and at the current price the stock is trading 6.4xFY08E and 5.3xFY09E earnings. We recommend the stock to be accumulated at current levels with a 12-month target price of Rs 150 (8xFY09E).

(Rs Mn) FY2004 FY2005 FY2006 FY2007 FY2008E FY2009E
Net Sales 5,836 6,713 8,018 8,844 9,800 10,800
EBITDA 1,166 901 1,565 1,868 2,254 2,592
Net Profit 528 380 805 861 1,098 1,322
EPS (Rs) 7.6 5.5 11.6 12.4 15.8 19.1
EPS growth (%) -28.1% 112.2% 6.8% 27.6% 20.4%
EBITDA Margin (%) 20.0% 13.4% 19.5% 21.1% 23.0% 24.0%
PER (x) 13.3 18.5 8.7 8.1 6.4 5.3
EV/EBITDA (x) 7.98 10.32 6.27 6.61 5.12 4.28
Net margin(%) 9.0% 5.7% 10.0% 9.7% 11.2% 12.2%
ROCE (%) 12.1% 7.7% 14.7% 12.8% 16.0% 17.6%

TNPL
NSE Symbol TNPL
Market cap. (Rsmn) 7,007
Market cap. (US$mn) 171
Shares outstanding (mn) 69
52-week High/Low (Rs) 105/80
Major shareholders(%)
Promoters 35
FIIs 10
Banks/Fis/MFs 32
Others (Including public) 23

MULTIBAGGERS: VINAY CEMENT

Ashish Chugh, Investment Advisor

Vinay Cements : Reco Price Rs. 37.65 CMP: Rs.41.50

Vinay Cement is a play on the demand explosion that the Cement deficit market of North East is expected to witness in the years to come. Investors can accumulate the stock at the current levels and on declines.

September 17, 2007
Vinay Cements Ltd.
CMP – Rs. 37.65 BSE Code – 518051

Vinay Cements Ltd. is a cement company with a niche – It is probably the only listed cement company having its manufacturing facilities located in North-Eastern part of the country – a region with very few cement producers; a region which currently imports over 50% of its cement requirements from neighbouring states; a region which has seen little infrastructure development due to various problems it faced in the past including Insurgency and militancy; however things could change in the years to come- with the situation now stabilizing and under control, the region could witness substantially increased infrastructure spending in the years to come and various Hydel Projects, Irrigation, Housing and Road projects being undertaken. Moreover, the region could witness Industrial Activity on account of the fiscal incentives provided by the government vide North East Industrial and Investment Promotion Policy, 2007 for setting up industries in the region.

The capacity expansions and Greenfield units undertaken by Vinay Cement and its subsidiaries augurs well for the future of the company.

Background

Vinay Cements Ltd. is a leading Cement manufacturer in North-East and has its plant located in Cacher Hills in Asom (Assam). The company currently is on an aggressive expansion spree setting up Greenfield projects through subsidiary companies. The group is also consolidating all its Cement business into Vinay Cement by making the other cement companies of the group as subsidiaries of Vinay Cement.

Vinay Cement has a 2.4 lakh ton Cement plant located in Assam. The company sells cement under the brand ‘Vinay’ and enjoys a high brand recall in North East. Promoters hold 75% Equity in the company.

Vinay Cement currently holds stakes in 3 Cement companies which have either cement plants or are implementing Cement projects in North East – these are RCL Cements Ltd., SCL Cements Pvt. Ltd. and Calcom Cement India Ltd.

RCL Cements Ltd. – RCL Cements Ltd. has a 1.0 lakh ton Cement plant. The company has been acquired by Vinay Cement Ltd. in June 07 through a stock swap. Vinay Cement Ltd. has issued 89 lakh shares at Rs.35 per share to the shareholders of RCL Cements Ltd. towards sale consideration for the shares held by them in RCL Cements Ltd. With this, RCL Cement has now become a 100% subsidiary of Vinay Cement. With the allotment of shares of Vinay Cement to the shareholders of RCL Cement, the promoters holding in Vinay Cement has increased from 52.65% to 74.95%, thereby triggering an Open Offer as per SEBI Guidelines.

RCL Cements holds investments of Rs.23 crores in Equity Capital of Calcom Cements India Ltd.. RCL Cement is a profit making company and has reported Sales of Rs.40.80 crores, EBITA of Rs.12.50 crores and a PAT of over Rs. 7.0 crores for FY 06-07.
SCL Cement Pvt. Ltd. – Vinay Cement has also acquired shareholding of SCL Cement Pvt. Ltd. from the promoters of Vinay Cement Ltd. SCL Cement Ltd. is currently implementing a Greenfield project for a 2.31 lakh cement plant alongwith a capacity of 1.32 lakh ton of Calcined Clay in Assam at a total cost of Rs.36 crores, to be financed through a mix of Term Loan, Internal Accruals and Equity. The plant is expected to come up in stages with the first stage scheduled to be implemented in March 08 and subsequent stages in June 08 and December 08.

Calcom Cement India Ltd. – Calcom Cement India Ltd. currently has Vinay Cement and RCL Cement as its major shareholders. Calcom Cement is implementing a 14 lakh ton project in North Cachar Hills region of Asom at a total cost of Rs.415 crores. The project is the largest cement project in the region and is expected to be implemented by December 08. Calcom Cement is the largest Industrial Investment in the state till date and has Equity participation by IL&FS and Government of Assam.
With the ongoing projects, the group would emerge as the largest cement manufacturer in the region.

Open Offer

Pursuant to the acquisition of RCL Cements Ltd. and allotment of shares to the promoters of Vinay Cement, the promoters of Vinay Cement are coming out with an Open Offer for acquisition of 20% public shareholding at a price of Rs.35 per share, as per SEBI Guidelines. In view of the open offer, we believe the stock price of Vinay Cement is unlikely to appreciate significantly from the current levels in the short term; this would however provide the long term investor with an opportunity to accumulate the stock at the current levels and on declines.

Financials

The latest financials of the company are given as under :-
QUARTERLY - LATEST RESULTS - Vinay Cements Ltd (Curr: Rs in Cr.)
Particulars Quarter Ended Quarter Ended Quarter Ended Year Ended Year Ended Year Ended

(Jun 07) (Jun 06) (% Var) (Mar 07) (12) (Mar 06) (12) (%Var)
Sales 8.78 13.64 -35.6 48.9 40.24 21.5
Other Income 1.16 1.38 -15.9 10.28 6.37 61.4
PBIDT 1.31 2.34 -44 11.82 8.76 34.9
Interest 0.35 0.21 66.7 1.1 0.65 69.2
PBDT 0.96 2.13 -54.9 10.72 8.11 32.2
Depreciation 0.6 0.55 9.1 2.44 2.19 11.4
PBT 0.36 1.58 -77.2 8.28 5.92 39.9
Tax 0 0 - 0.28 0 -
Deferred Tax 0 0 - 0 0 -
PAT 0.36 1.58 -77.2 8 5.92 35.1
(Source: Capitaline)
Latest Data As On 14/09/2007
Latest Equity(Subscribed) 18.9
Latest Reserve 53.7
Latest Bookvalue -Unit Curr. 38.41
Latest EPS -Unit Curr. 3.59
Latest Market Price -Unit Curr. 37.65
Latest P/E Ratio 10.49
52 Week High -Unit Curr. 42
52 Week High-Date 8/3/2007
52 Week Low -Unit Curr. 15.6
52 Week Low-Date 9/15/2006
Market Capitalisation 71.16
Stock Exchange BSE
Dividend Yield -% 0
(Source: Capitaline)

Conclusion

The promoters of Vinay Cements have undertaken a consolidation exercise which will make all cement business of the group, a part of Vinay Cement. The consolidation will help Vinay Cements, consolidate its competitive edge in the cement map of the region through increase in market share and cost savings through common dealer network and sharing of other common costs. The consolidation of all cement business of the group into Vinay Cement would also remove any conflict of interest between the public listed company and the private companies of the group involved in similar business, thereby improving the perception of the company in the minds of investors and therefore better discounting. Some recent press reports suggest that group is also talking to small and medium sized players in the business for acquisition to ramp up business.

Vinay Cement itself is ramping up its capacity from 2.4 lakh tpa to 5.0 lakh tpa through debottlenecking and adding balancing equipment.

Vinay Cement enjoys several advantages :-

- The company has its plants located in area where currently over 50% of the cement demand is fulfilled from supplies from neighbouring states. Being a difficult terrain, the transport cost is substantial, which provide the cement manufacturers of the area a distinct advantage.

- The company has Limestone quarries which have been given by the state government on Long Term Lease. This arrangement takes care of any worries on the raw material front.

- As per North East Industrial and Investment Promotion Policy, 2007, notified in April 2007, the Centre has provided substantial financial incentives for setting up manufacturing operations in North-East – these include exemption from Sales Tax, Excise Duty, and Income Tax. The icing in the cake is that the state also provides Capital Investment subsidy of 30% – this effectively means that plants being set up will be entitled to a subsidy of 30% of the Capital Cost (cost of Plant & Machinery & Capital Equipment). This could lead to Corporate Houses looking at North East for setting up their manufacturing facilities, leading to increased Infrastructure Development in the Region. Also, these incentives would make the new cement plants being set up in the region to be more competitive than the ones located outside the state leading to enhancement of shareholders value.

The major RISKS in the investment include Execution Risk by the promoters, resurgence of problems like militancy and insurgency in the region and the possibility of other players setting up cement plants in the area leading to the demand-supply fulcrum shifting in favour of the latter, thereby reducing profitability.

The North East has seen little infrastructure development in the past due to various problems it faced including Insurgency and militancy – things however could change in the years to come. The region could witness substantially increased infrastructure spending in the years to come primarily on account of the local problems being brought significantly under control and various Hydel Projects, Irrigation, Housing and Road projects being undertaken. Moreover, the region could witness Industrial Activity on account of the fiscal incentives provided by the government for setting up industries in the region.

The North Eastern part of the country has been a cement deficit region and with demand far outstripping the supplies, the cement prices in the region are much higher than many other parts of the country. Currently, majority of the supply for cement in the region comes from outside the region – there is therefore a ready market for cement in the region.

The current consolidation exercise and with various projects under implementation, especially Calcom Cement, will see the group emerge as largest cement manufacturer in the region with a capacity of over 20 lakh ton by December 2008 and will see the Consolidated Revenues and profitability of Vinay Cement going up multifold in the years to come.

Vinay Cement is therefore a play on the demand explosion that the Cement deficit market of North East is expected to witness in the years to come. Investors can accumulate the stock at the current levels and on declines.

UPDATES ON OUR MULTIBAGGERS CALLS

FOLLOWING ARE THE RESULTS OF OUR CALL WHICH WE STARTED FRM 12 AUGUST

1.PUNJLLOYD RECOMMENDED AT 275, CMP IS 291.45, MEANS 5.87% GAIN..

2.OSWAL FERTILIZER OR BINDAL AGRO RECOMMENDED AT 32.55, CMP IS 41.05, MEANS 26.11 % GAIN..

3.INDIAN HOTELS RECOMMENDED AT 135.9, CMP IS 128.65, MEANS 5.33% LOSS..

4.TTML RECOMMENDED AT 29.05, CMP IS 33.05, MEANS PROFIT OF 12.01%..

5.FRESHTROP FRUITS RECOMMENDED AT 114.75, CMP IS 130.5 MEANS PROFIT OF 13.73%..

6.MICRO TECHNOLOGIES RECOMMENDED AT 243, CMP IS 254.80, MEANS PROFIT OF 4.86%..

7.JSW STEEL RECOMMENDED AT 650, CMP IS 683.5, MEANS PROFIT OF 5.1%..

8.RCOM RECOMMENDED AT 520, CMP IS 543, MEANS PROFIT OF 4.42%..

9.MYSORE CEMENT RECOMMENDED AT 45.2, CMP IS 56.2, MEANS PROFIT OF 24.34%..

10.SUNIL HITECH RECOMMENDED AT 189.1, CMP IS 250.8, MEANS PROFIT OF 32.63%..

11.DCM SHRIRAM RECOMMENDED AT 82.45, CMP IS 70.3, MEANS LOSS OF 14.74%

12.WELSPUN GUJARAT RECOMMENDED AT 247.35, CMP IS 264.2, MEANS PROFIT OF 6.81%..

13.HOTEL LEELA RECOMMENDED AT 43.5, CMPS IS 46.95, MEANS PROFIT OF 7.93%..

14.VENKYS RECOMMENDED AT 157.05, CMP IS 177.55, MEANS PROFIT OF 13.05%..

15.CEAT RECOMMENDED AT 176.7, CMP IS 179.75, MEANS PROFIT OF 1.73%..

TOTAL WE HAD RECOMMENDED 15 SCRIPTS IN LAST 5 WEEK, IN WHICH 13 ARE IN PROFIT N ONLY 2 ARE IN LOSS.. ON TOTAL AVERAGE WE EARNED 9.23% PROFIT ON EVERY SCRIPT.. IF SOME SMALL INVESTOR INVESTED 5,000 RS ON EACH SCRIPT THN HIS TOTAL INVESTMENT=75,000 RS N PROFIT TILL NOW WILL BE 6926 RS.. IN ONLY 5 WEEKS, N I THINK THT IS REALLY A GUD RETURN, AS WE DO GET 9% RETURN IN 1 YEAR IN FIX DEPOSIT FRM BANK N HERE WE EARN FRM SAFE INVESTMENT.. CHEERS FRNDS..

I HAD MADE ALL THIS CALCULATION JST TO MAKE U ALL ATTENTION TOWARD THIS THREAD N ESPECIALLY SMALL INVESTOR N SAFE TRADER..

UPDATES ON OPTION CALL RESULTS

FEW UPDATES ON MY OPTION CALLS :-

1. PROFIT OF REL 800 CALL FRM CMP IS 55,000 BY HOLDING 1LOT WHOSE CMP IS 100 RS, IN MORNING IT WAS 120, 1 LOT WAS SOLD AT 60 RS..

2. PROFIT OF RELIANCE 2010 CALL IS 2400 RS, HOLDING BOTH LOT..

3. PROFIT OF SBI 1620 CALL IS 10,500 RS, HOLDING BOTH LOT..

4. PROFIT OF HIND UNILEVER 210 CALL IS 7000 RS, HOLDING 1 LOT..

5. PROFIT OF IDBI 125 CALL IS 28,920, HOLDING 1 LOT..

6. LOSS OF TATA STEEL 740 CALL IS 5400 RS, HOLDING BOTH LOT..

7. PROFIT OF 1875 RS IN JPHYDRO 50 CALL, HOLDING 2 LOT..

8. PROFIT OF IDFC 130 CALL IS 25075 RS, HOLDING 1 LOT..

9. PROFIT OF RPL 125 CALL IS 19,765 RS, HOLDING 1 LOT..

10. PROFIT OF NTPC 185 CALL IS 14,462.5, HOLDING 1 LOT..

11. PROFIT OF RELCAPITAL 1230 IS SUPER DUPER 97,405 RS N WE HOLDING 1 LOT..

12. LOSS OF 19,500 IN GMR 840 CALL N HOLDING 1 LOT..

TOTAL RESULT:- 7 CALLS OUT OF 12 ARE DOUBLE OR MORE OF THEIR BUYING RATE, 3 IN PROFIT N ONLY 2 IN LOSS..

TOTAL INVESTMENT ON ALL 12 CALLS:3,57,425

TOTAL PROFIT ON ALL CALLS AFTER CUTTING LOSSES IN 2 CALLS: 2,37,142

MEANS NR ABT 66% RETUN IN 9 TRADING SESSION.. IT'S REALLY FLOOD OF MONEY I THINK IF SOME1 FOLLOWED CALLS..


IF SOME1 IS HOLDING RELCAPITAL 1230 CALL N REL 800 CALL THEN HOLD REL CALL WTH 80 RS AS STOPLOSS N 160 RS STOPLOSS IN RELCAPITAL CALL, BOTH SL ARE ON CLOSING BASIS..

TRY TO SELL OUT REL CALL IF GET CHANCE AT 110 OR 120 N RELCAPITAL AT 190 PR 200 RS..

OPTION CALLS WE GIVEN, U JUDGE URSELF OUR PERFORMANCE WTH CURRENT PRICE

Posted by: ajay8000 on 31-AUG-2007 (12:15:10)

FRNDS HERE I M GIVING FEW OPTIONS FOR U :-

1.Buy REL 800 ca at 30 or below, tgt 60..

2.RIL 2010 call at 39 OR BELOW TGT 100..

3.SBIN 1620 call AT 60 OR BELOW N tgt 110..

RULES FOR TRADING IN OUR OPTIONS CALL:-

1. TAKE 2 N MULTIPLE LOT SO THT U CAN SELL 1 WHEN CALL PREMIUM GET DOUBLE N HOLD ANOTHER FOR UNLIMITED PROFITS..

2. TAKE POSITIONS IN ALL CALLS SO IF U GET IN LOSS FRM OUR 1 CALL THN COVER FRM OTHER..

3. TGT PERIOD IS TILL EXPIRY..

4. NO STOPLOSS, WHOLE PREMIUM IS SL MEANS HOLD TILL IT EXPIRY OR TILL IT GET ZERO..

5. SO READ ALL RULES CAREFULLY N SPECAILLY 4 NUMBER, THN INVEST, BCOZ WE DNT SUGGEST ANY SL..



Posted by: ajay8000 on 31-AUG-2007 (16:01:58)

2 MORE CALLS:-

1. BUY HINDUNILEVE 210 CALL AT 4 OR BELOW TGT 8..

2. BUY IDBI 125 CALL AT 7 N BELOW TGT 14..


Posted by: ajay8000 on 03-SEP-2007 (19:39:00)

UPDATE OF MY CALLS

1.IDBI 125 CALL SUGGESTED AT 7, TODAY LTP IS 11.15, MY RULE IS TO SELL 1 CALL OUT OF 2 WHEN IT GET DOUBLE, I HAD GIVEN THIS CALL TO MY PAID CLIENT ON YAHOO AT 5, SO THEY HAD SOLD 1 CALL AT 10, BUT THOSE WHO TAKEN FREE CALL TODAY AFTER READING IT ON FRIDAY EVE CAN SELL 1 CALL TOMORO AT 14, I THINK U WILL GET CHANCE TOMORO ONLY.. N AFTER THT HOLD ANOTHER TILL EXPIRY FOR UNLIMITED PROFIT MAY BE 20 RS EVEN ..

I HAD GIVEN TODAY MY CLIENT CALL OF NTPC 175 AT 4, N IT REACHED IT TGT TODAY ONLY BUT STILL U CAN BUY 185 CALL AT 6.5 OR BELOW UPTO 5 (BCOZ TOMORO THERE CAN BE PROFIT BOOKING).. FOR TGT 10-15, AS MINE TGT IS 200++ IN THIS MONTH..

3.BUY TISCO 740 CALL AT 13.5 OR BELOW FOR TGT 25-40-50..

4.BUY JPHYDRO 50 CALL AT 4.25 OR BELOW TGT 8-10..

5.BUY IDFC 130 CALL AT 5 OR BELOW N TGT 10 ++..

6.BUY RPL 125 CALL AT 4.75 OR BELOW N TGT 8-10..

I THINK SO MUCH CALL ARE ENOUGH, SO START BUYING N MINTING MONEY..

IF NIFTY DNT BREAK 4100 THN I THINK ALL OF ABOVE TGT WILL BE ACHIEVED TILL SEPTEMBER EXPIRY..




Posted by: ajay8000 on 07-SEP-2007 (01:35:57)

NEW RISKY CALL BUY GMR 840 CALL AT 35 N DIPS FOR TGT 70-100-150.. IT A RISKY CALL SO BUY ONLY 1 LOT..N REMEMBER NO STOPLOSS ..!! WILL UPDATE MORE IF THERE WILL BE ANY CHANGE IN STRATEGY !!

BUY RELCAPITAL 1230 CALL AT 52 N BELOW FOR SMALL PROFIT N TGT 65-80++ !!


THESE ARE THE OPTION CALLS WE HAD GIVEN TO OUR PAID CLIENTS, SO NOW U CAN JUDGE ALL OF THEM WTH THEIR CURRENT PRICE N CHECK OUR PERFORMANCE !!

IF U WANT TO EARN MONEY LIKE THIS THN SOON JOIN OR CONTACT US AT AJAY8000 ON YAHOO ORR 9928856677 FOR DETAILS.. ITS VERY LESS FEES COMPARED TO PROFITS.. THANKS !!

UPDATE OF OPTION CALLS GIVEN 1 WEEK EARLIER

1. RPL 125 CALL BOUGHT AT 4.75, 1 LOT SOLD TODAY AT 8 RS, OUR 1ST TGT N NOW HOLDING OTHER LOT FOR UNLIMITED PROFIT..

2.NPTC 185 CALL GIVEN AT 6.5, SOLD 1 LOT AT 13 RS, DOUBLE OF PREMIUM N NOW HOLDING OTHER FOR UNLIMITED PROFIT..

THERE IS NOT ANY NEW OPTION CALL, BCOZ MKT IS RANGE BOUND, N THE STOCKS WHICH ARE MOVING DNT HAVE ACTIVE N LIQUID OPTIONS..

BUT STILL CAN ENTER IN FEW CALLS WHICH ARE YET OPENED N BELOW OR NR OUR ENTERENCE LEVEL LIKE, RELIANCE, SBI, TISCO, JPHYDRO, BUT NOW WE R AT MID OF MONTH, N WE ARE BULLISH FRM 10 DAYS NR ABT, SO FOR PRECAUTION, U CAN BUY 1 LOT INSTEAD OF 2, BUT REMEBER NO STOPLOSS N TIME PERIOD TILL EXPIRY..

ITS RAINING (money) MAN !!

MULTIBAGGERS: CEAT LTD.

India Infoline Picks,

Ceat : Reco Price Rs. 176.50 CMP: Rs.176.50 (Gain 0.00%)

The buoyancy in automobile sector and stability in raw material prices with a negative bias is expected to benefit CEAT. The company also plans to de-merge its investment portfolio into a separate company making it a good buying opportunity.

BUY

CEAT LTD CMP Rs176.50

CEAT, a diversified tyre major, is ramping up its production facilities to benefit from the uptrend in tyre offtake. It has planned to modernize its existing facilities and double its Off The Road (OTR) capacity, which will boost volumes in FY08 and FY09. The proposed sale of land at its Bhandup facility and relocating out of Mumbai is expected to boost its capex plans and increase margins. CEAT is planning to invest in a CV radial tyre facility over the next two years. It is expected to invest over Rs 500 crore in the next 2-3 years to ramp up its capacities. It plans to increase truck & bus radial sales from 600-700 tyres per month to 4,000-5,000 by June 2008 through its existing arrangement with Pirelli and outsourcing from China. We recommend a BUY with a target of Rs 230, implying upside of 31%.

Company Background

CEAT is present in commercial vehicles (CV), passenger car radials, two-wheeler, tractor, OTR and others segments. Its popular brands include LUG and RIB in T&B and LCV segments, SAMRAAT in Tractor, ENDURA in PV segment and SECURA in two-wheeler segment. It has a total capacity of 385 tons per day (tpd) at two plants in Maharashtra. It sources two-wheeler tyres from private players.
Shareholding pattern

As on 30th June 2007 Holding
(%) No. of shares
(in Lakhs)
Promoters
43.2 197.1
Non-promoter

Corporate Holding 5.8 26.3
Institutions 24.6 112.3
Foreign 8.7 39.0
Public & Others 17.7 81.0

Fall in raw material costs boosts EBIDTA margin:
Tyre business is raw material intensive. Natural rubber prices were on a downward trend for the past 6 months and are expected to continue to slide in the coming quarters. In Q1FY08, fall in natural rubber prices and stable crude-based raw material prices boosted EBIDTA margin by 550 bps to 9.2%. Apart from this, CEAT's hedging policy for raw materials has shown good results in the past few quarters. Benchmark rubber price is hovering around Rs 88 per kg at present with year to date average at Rs 85 per kg. Average natural rubber price for CEAT in FY07 stood at Rs 97 per kg.

Tyre demand robust with buoyancy in replacement market
Tyre demand growth, including exports, for June 2007 quarter in the country stood at 6.4% with strong replacement market (RM) demand. RM demand increased by 10.4%, compensating flat growth in original equipment manufacturers (OEM) demand. Exports continued to show strong growth at 8.7%. With the Indian economy growing at over 9%, tyre demand is expected to remain strong.

Financials (Rs.Crores)
FY06 FY07 FY08E FY09E
Revenues 1,747 2,131 2,289 2,448
yoy growth (%) - 22.0 7.4 7.0
EBIDTA 69 116 192 212
EBIDTA margin (%) 3.9 5.4 8.4 8.7
PAT 1 24 92 90
Pre-exceptional PAT 1 24 76 90
yoy growth (%) - 4,535.8 218.3 18.2
EPS (Rs) 0.1 5.3 16.7 19.8
P/E (x) - 35.0 11.0 9.3
EV/EBIDTA (x) 12.0 8.7 5.4 4.6
ROE (%) 0.1 6.4 16.4 16.3
ROCE (%) 8.2 10.4 14.7 15.3

Source: Company, India Infoline Research
Attractive valuations

The buoyancy in automobile sector and stability in raw material prices with a negative bias is expected to benefit CEAT. The company has planned to de-merge its investment portfolio into a separate company. Per share value of investment at current prices stands at Rs 98. We have valued CEAT at 10x of its FY09E EPS of Rs19.8 and assigned Rs 32 for its investment portfolio. Our sum of parts value for CEAT comes to Rs 230. We recommend BUY.

OPTION CALL SERVICE

SERVICE:-

WE DO PROVIDE OPTION CALLS IN THIS SERVICE, IN THIS SERVICE OUR STRATEGY IS TO BUY MULTIPLE OF 2 LOT N HOLD THEM TILL OUR TGT GET COMPLETED, THERE ARE MANY MORE RULES TO EXECUTE DURING THESE CALL, WHICH WE WILL TELL AS U BE OUR CLIENT, IN THIS SERVICE OUR TGT ARE T1-50%, T2-100%, T3 UNLIMITED PROFIT TILL EXPIRY..

NUMBER OF CALLS:-

5 TO 10 IN A MONTH, DEPEND ON MKT

CHARGES:-

1000 RS FOR 1 CALL OR 5000 RS MONTHLY !!

SMS SERVICE WILL BE PROVIDED TO MONTHLY SERVICE SUBSCRIBER, IF HE IS INTERESTED..!!

IN ALL 3 SERVICE, SOMETIMES WE PROVIDE GUD LONG TERM INVESTMENT N SHORT TERM MOMENTUM CALLS N OPTION CALLS ALSO FREE OF COST AS BONUS TO OUR LOYAL PAID CLIENTS !!

NO FREE TRIAL !! U CAN TAKE PAID TRIAL N IF U DNT GER PROFIT THN UR FEES WILL BE GIVEN BACK TO U, THIS SYSTEM IS DONE FOR MAKING AWAY PEOPLE WHO TAKE TRIAL FOR TIMEPASS!!

CONTACT ME ON AJAY8000@YAHOO.COM OR ADD AJAY8000 ON YAHOO MESSENGER OR CALL ME ON 9928856677 FOR ANY MORE DETAILS REGARDING SERVICE OR FEES OR BANK DETAILS ETC. !!

SUBSCRIPTION DETAILS:-

DEPOSIT "A/C" PAYEE CHEQUE/D.D/CASH IN YOUR NEAREST ICICI BANK OR TRANSFER FUND THROUGH ONLINE NET BANKING !!

BANK : ICICI BANK
NAME : MANOJ KUMAR CHOUDHARY
SAVING A/C NO : 018401518959
BRANCH : KOTA, RAJASTHAN

AFTER DEPOSITING PAYMENT, PLEASE FILL FOLLOWING DETAILS AND EMAIL US ON KHICHDITIPS@GMAIL.COM

NAME :
EMAIL ID :
YAHOO ID :
MOBILE NO. :
CITY :
STATE :
AMOUNT DEPOSITED :
YOUR BANK :
CHEQUE/DD/ONLINE TRANS. ID NO. :
DATE OF CHEQUE/DD/ONLINE TRANS. :

SURE SHOT CALLS

SERVICE:-

IN THIS SERVICE WE WILL PROVIDE U SHORT TERM DELIVERY CALLS FRM 1 DAY TO 1 WEEK N SOMETIMES 1 MONTH, IT CAN BE FRM FUTURE OR OPTIONS. THIS SERVICE IS AVAILABLE IN 2 DIFFERENT PART
A:- 1000 RS FOR 1 CALL, IN THIS WE WILL ASSURE U MINIMUM 5000 RS PROFIT ON 1 SCRIPT IN MAXIMUM 5 TRADING SESSION. WE MAKE U REGULAR UPDATE ABT THIS SCRIPT N INFORM U EXIT LEVEL ACCORDING TO MKT N THE SCRIPT MOVEMENT.

B:- 5000 RS FOR WHOLE MONTH, IN THIS SERVICE WE ASSURE U MINIMUM 30,000 RS PROFIT PER MONTH IN WHOLE MONTH, IT CAN BE FRM 1 SCRIPT OR MORE, DIFFERENCE BTWN A & B IS THT IN MONTHLY SUBSCRIPTION U WILL GET 30K PROFIT FRM 5K FEES N IN SINGLE CALL U WILL GET 25K PROFIT ONLY N IN MONTHLY SERVICE U COULD EARN MORE THN 30K ALSO, WE WILL GIVE FEW SEPCIALY FACILITY LIKE SMS SERVICE ETC TO MONTHLY SUBSCRIBE CLIENTS N FEW MORE THINGS, BCOZ WE WANT TO INCREASE MONTHLY CLIENT INSTEAD OF SINGLE CALL CLIENT.. ASK US FOR MORE DETAILS , QUERIES N DIFFERENCE BTWN BOTH SERVICE.

GUD FOR PERSON, WHO CNT GIVE TIME FOR MKT BCOZ OF JOB N WHO DNT WANA TAKE MANY POSITIONS AT A TIME N WHO WANT SAFE N SURE SHOT MONEY WITHOUT ANY TENSION. IN THIS MONTHLY SERVICE WE WILL MAKE U ALERT N UPDATE REGULARLY BY SMS OR CALL ON MOBILE.

INVESTMENT NEEDED FOR THIS SERVICE IS 1.5 TO 3 LAKH, SO U CAN BUY N HOLD 2 FUTURE LOTS AT 1 TIME MAXIMUM !!

IN ALL 3 SERVICE, SOMETIMES WE PROVIDE GUD LONG TERM INVESTMENT N SHORT TERM MOMENTUM CALLS N OPTION CALLS ALSO FREE OF COST AS BONUS TO OUR LOYAL PAID CLIENTS !!

NO FREE TRIAL !! U CAN TAKE PAID TRIAL N IF U DNT GER PROFIT THN UR FEES WILL BE GIVEN BACK TO U, THIS SYSTEM IS DONE FOR MAKING AWAY PEOPLE WHO TAKE TRIAL FOR TIMEPASS!!

CONTACT ME ON AJAY8000@YAHOO.COM OR ADD AJAY8000 ON YAHOO MESSENGER OR CALL ME ON 9928856677 FOR ANY MORE DETAILS REGARDING SERVICE OR FEES OR BANK DETAILS ETC. !!

SUBSCRIPTION DETAILS:-

DEPOSIT "A/C" PAYEE CHEQUE/D.D/CASH IN YOUR NEAREST ICICI BANK OR TRANSFER FUND THROUGH ONLINE NET BANKING !!

BANK : ICICI BANK
NAME : MANOJ KUMAR CHOUDHARY
SAVING A/C NO : 018401518959
BRANCH : KOTA, RAJASTHAN

AFTER DEPOSITING PAYMENT, PLEASE FILL FOLLOWING DETAILS AND EMAIL US ON KHICHDITIPS@GMAIL.COM

NAME :
EMAIL ID :
YAHOO ID :
MOBILE NO. :
CITY :
STATE :
AMOUNT DEPOSITED :
YOUR BANK :
CHEQUE/DD/ONLINE TRANS. ID NO. :
DATE OF CHEQUE/DD/ONLINE TRANS. :

YAHOO CALLS

SERVICE:-

LIVE INTRADAY TRADING CALLS DURING MKT HOURS ON YAHOO MESSENGER, WHICH WILL BE MIXTURE OF TECHNICAL CALL, INSIDE NEWS STORY, FUNDAMENTALS ETC. IN THIS WE ASSURE U DAILY 10K++ PROFIT DAILY ON AVERAGE WTH INVESTMENT OF 2 LOT THT IS 2.5 TO 3 LAKH RS.

NUMBER OF CALL:-

MOST OF THE DAYS 2 TO 3 CALLS IN A DAY N SOMETIME ONLY 1 N RARELY SOMEDAY EVEN 4-5.

CHARGES:-

5000 RS FOR 1 MONTH.

IN THIS CALL, WE ASSURE U 10K++ PROFIT DAILY ON AVERAGE, BUT U NEED TO BE AVAILABLE ON YAHOO MESSENGER WHOLE TRADING SESSION N DO HAVE TO TRADE OUR EVERY CALL N FAST WITHOUT ANY PERSONAL DECISION MAKING, THIS SERVICE IS FOR PERSON WHO HAVE GUD INVESTMENT N WANA MAKE SUCH GUD PROFIT ALSO !!

IN ALL 3 SERVICE, SOMETIMES WE PROVIDE GUD LONG TERM INVESTMENT N SHORT TERM MOMENTUM CALLS N OPTION CALLS ALSO FREE OF COST AS BONUS TO OUR LOYAL PAID CLIENTS !!

NO FREE TRIAL !! U CAN TAKE PAID TRIAL N IF U DNT GER PROFIT THN UR FEES WILL BE GIVEN BACK TO U, THIS SYSTEM IS DONE FOR MAKING AWAY PEOPLE WHO TAKE TRIAL FOR TIMEPASS!!

CONTACT ME ON AJAY8000@YAHOO.COM OR ADD AJAY8000 ON YAHOO MESSENGER OR CALL ME ON 9928856677 FOR ANY MORE DETAILS REGARDING SERVICE OR FEES OR BANK DETAILS ETC. !!



SUBSCRIPTION DETAILS:-

CHARGES Rs. 5000/- PM
CHARGES Rs. 13,500 FOR 3 MONTH
CHARGES Rs. 25,000 FOR 6 MONTH

DEPOSIT "A/C" PAYEE CHEQUE/D.D/CASH IN YOUR NEAREST ICICI BANK OR TRANSFER FUND THROUGH ONLINE NET BANKING !!

BANK : ICICI BANK
NAME : MANOJ KUMAR CHOUDHARY
SAVING A/C NO : 018401518959
BRANCH : KOTA, RAJASTHAN

AFTER DEPOSITING PAYMENT, PLEASE FILL FOLLOWING DETAILS AND EMAIL US ON KHICHDITIPS@GMAIL.COM

NAME :
EMAIL ID :
YAHOO ID :
MOBILE NO. :
CITY :
STATE :
AMOUNT DEPOSITED :
YOUR BANK :
CHEQUE/DD/ONLINE TRANS. ID NO. :
DATE OF CHEQUE/DD/ONLINE TRANS. :

CALL PERFORMANCE AT MINIMUM

EVEN IF CALLS BOUGHT AT RECOMMENDED RATE N NT IN DIPS, THN WHT THE PROFIT WILL BE ??

1. RELIANCE INVESTMENT=11,700

2. SBI INVESTMENT=30,000

3. TATA STEEL INVESTMENT=18225

4. JP HYDRO=53125

5. RPL IVESTMENT=31825

OTHER INVESTMENT ARE SAME, SO NOW CHANGED TOTAL INVESTMENT IS 2,65,225 INSTEAD OF 2,43,025, SO IN THT CASE PROFIT IS 1,01,750 RS OR 38%..

BUT I THINK 38% RETURN IN 4 TRADING SESSION, IS ALSO GRT OR MONEY RAIN IN MY WORDS.. !!

WWW.KHICHDITIPS.BLOGSPOT.COM

51% RETURN IN 4 TRADING SESSION IN CALL OPTIONS

1. REL 800 CALL GIVEN AT 30 IS NOW 74.95, SOLD 1 AT 60 N HOLDING 2ND TILL EXPIRY FOR UNLIMITED MONEY..INVESTMENT=33,000..CMP=74250 RS

2.RELIANCE 2010 CALL GIVEN TO BUY AT 39 N BELOW, GOT CHANCE TILL 33 RS BELOW TO BUY, CMP IS 40.1 N HOLDING BOTH 2 LOT..IF BOUGHT AT 35 THN INVESTMENT=10,500.. CMP =12000

3.SBI 1620 CALL GIVEN TO BUY AT 60 N BELOW, GOT CHANCE TILL 43 RS BELOW TO BUY, CMP IS 67 N HOLDING BOTH 2 LOT..IF BOUGHT AT 50 THN INVESTMENT=25,000.. CMP=33,500

4.HINDUNILEVER 210 CALL GIVEN AT 4 N BELOW, CMP IS 8.9 RS, SOLD 1 CALL AT 8 N HOLDING 1 LOT..INVESTMENT=8000 RS, CMP IS 16,900..

5.IDBI 125 CALL GIVEN AT 7, CMP IS 15.45, SOLD 1 LOT AT 14 N HOLDING 2ND LOT FOR UNLIMITED MONEY..INVESTMENT=33,600.. CMP=70,680..

6.TATA STEEL 740 CALL GIVEN AT 13.5 N BELOW, GOT CHANCE TO BUY TILL 8 RS IN DOWN, CMP IS 10 RS, HOLDING 2 LOT..IF BOUGHT AT 10 THN INVSTMENT=13,500..CMP=13,500..

7.JPHYDRO 50 CALL GIVEN AT 4.25 N BELOW, GOT CHANCE TO BUY 3.2 RS IN DOWN, CMP IS 3.85 RS, HOLDING 2 LOT..IF TAKEN AT 3.75 THN INVESTMENT=46875..CMP=48125

8.IDFC 130 CALL GIVEN AT 5 N BELOW, GET CHANCE TO BUY TILL 4.5 RS , CMP IS 7.2 RS, HOLDING 2 LOT..
INVESTMENT=29,500..CMP=42,480..

9.RPL 125 CAL GIVEN TO BUY AT 4.75 N BELOW, GET CHANCE TO BUY TILL 3.35 IN DOWN, CMP IS 4.7 RS, HOLDING 2 LOT..IF BOUGHT AT 4 THN INVESTMENT=26,800..CMP=31,490..

10.NPTC 185 CALL GIVEN AT 6.5 N BELOW, GET CHANCE TO BUY IT TILL 4 IN DOW, CMP IS 7.4 RS, HOLDING 2 LOT..IF BOUGHT AT 5 THN INVESTMENT=16,250.. CMP=24,050 RS

TOTAL INVESTMENT ON ALL 10 CALLS=2,43,025 RS.. CMP=3,66,975.. MEANS PROFIT=3,66,975-2,43,025= 1,23,950 RS..51% RETURN IN 4 TRADING SESSION..
IT'S RAINING (MONEY) MAN..!!

RIL acquires petroleum retailing assets of GAPCO in East Africa

Reliance has acquired a Majority stake and Management control of Gulf Africa Petroleum Corporation (GAPCO), a company which has a significant presence in East Africa in the petroleum downstream sector. The acquisition has been made through a wholly owned subsidiary, Reliance Industries Middle East, Dmcc (RIME), a company registered in United Arab Emirates.

GAPCO, an entity based in East and Central Africa with headquarters in Mauritius, owns and operates large storage terminalling facilities and a retail distribution network in several countries – including Tanzania, Uganda, Kenya. It also owns and operates large storage terminals in Dar Es Salaam (Tanzania), Mombassa (Kenya), Kampala (Uganda) and has other well spread depots in East & Central Africa. It also operates more than 250 Outlets covering retail and industrial segments.
Reliance considers its acquisition of GAPCO as strategic in nature. The East African countries, where GAPCO operates, have demonstrated rapid economic growth and have progressive government policies in place. The demand for petroleum products in these countries is rising steadily and has mirrored the rapid GDP growth. Import of petroleum products in these countries is also expected to rise in the near future. Further, these markets are easily accessible from India and in that sense provide a strategic fit for exports from India.

Reliance owns and operates the world’s largest greenfield refinery (660,000 barrels per day capacity) at Jamnagar on the west coast of India and is setting up another similar sized export-oriented refinery (580,000 barrels per day capacity) at the same location through Reliance Petroleum Limited (RPL). Post commissioning of this refinery by December 2008, Jamnagar will become the Refining hub of the world, processing approximately 1.2 million barrels of crude oil per day. This will be the largest refining complex at any single location in the world. Reliance is India’s largest exporter with its petroleum products being sold in over hundred countries covering Europe, Americas, Far East, and Africa in developed and emerging economies across various continents and geographies.
Acquisition of GAPCO by Reliance is a strategic step towards achieving its global vision in the petroleum downstream sector by integrating the entire value chain consisting of Refining, Shipping, Trading, Terminalling and Marketing through retail and wholesale segments.

Integration of this entire global value chain presents Reliance an extremely attractive potential upside to gain further prominence in the global petroleum downstream arena. This will help Reliance establish a natural marketing sink for its refinery products and capture value up to the last mile in the global petroleum value chain.

RIL is also believed to have set its sights on a refinery in Kenya. It has expressed interest in acquiring a 50% stake held by the oil marketers in the Kenya Petroleum Refinery Ltd., which is half owned by Shell, BP and Chevron. The Kenyan government owns the remaining half of Kenya Petroleum. The refinery has a capacity to process about 60,000 barrels per day (bpd).

According to allAfrica.com, RIL is also keen be a major player the monthly tenders for oil importation in a system dubbed Open Tender System (OTS) where one marketer imports crude oil on behalf of other players.

RIL is also keen on building a retail presence in Kenya.

Source-Various

MULTIBAGGERS : Venkys

Ashish Chugh, Investment Advisor

Venkys : Reco Price Rs. 157.05 CMP: Rs.157.05

Venky’s has the potential to attract the Institutional Investors. Smart investors will do well to accumulate the stock at the current levels and on declines.The stock may well turn out to be the McDowell of the Indian poultry industry.

September 4, 2007
Venky’s India Ltd.
CMP – Rs. 157.05 NSE Symbol - VENKEYS BSE Code –523261

Venkys India Ltd. is a leading producer of poultry products in India. The company’s product portfolio includes animal health products, pellet feeds, processed, and further processed chicken products, solvent oil extraction, and Specific Pathogen Free Eggs.

The Venkateshwara Hatcheries Group also caters to the related requirements of the poultry sector, such as poultry feed, vaccines, medicines and health products. The Poultry & Poultry Products business accounts for lion’s share of the revenues of the company. The other major contributors to revenue include Poultry Feed, Animal Health Products, and Solvent Extraction. Diversifying from mainstream poultry products, Venkys (India) Limited has added to its credit, manufacturing facilities for nutritional health products for humans, and pet food and health care products. The company has steadily grown to over 30 units spread across India.

The company also produces high-tech specific pathogen-free eggs (SPFE). The company's Specific Pathogen Free Egg unit is among four such units in the world and the only one of its kind in the developing world. These eggs are used for making vaccines for human beings and chicken as well. Though this business accounts for only 6% of total revenues, its profitability is very high. The company produces a wide range of animal health products like antibiotics, growth promoters and feed supplements.

The company faces competition from the unorganized sector in the Processed Chicken segment. However, the company has carved a niche for itself and supplies its products to quality-conscious institutional consumers in the hospitality industry. These include Domino's, KFC, Mc Donalds and Pizza Hut, major five star hotels and flight kitchens. The company is witnessing a good growth in demand from this segment. The company also sells various poultry products in the ready-to-eat segment through a nationwide distribution network. These products are sold under the brand name VENKY’S and are available at Supermarkets and retail stores in all major cities in India.

Financials

The latest financials of the company are given as under :-

Quarterly Results: Venky's (India) Ltd (Curr: Rs in Cr.)
Particulars Quarter Ended Quarter Ended Quarter Ended Year Ended Year Ended Year Ended

(Jun 07) (Jun 06) (% Var) (Mar 07) (12) (Mar 06) (12) (%Var)
Sales 120.86 88.54 36.5 410.48 381.69 7.5
Other Income 3.21 1.44 122.9 6.4 2.09 206.2
PBIDT 17.18 7.24 137.3 30.31 27.13 11.7
Interest 1.97 1.14 72.8 4.83 3.17 52.4
PBDT 15.21 6.1 149.3 25.48 23.96 6.3
Depreciation 2.03 1.72 18 7.34 6.17 19
PBT 13.18 4.38 200.9 18.14 17.79 2
Tax 4.1 1.42 188.7 5.1 7.85 -35
Deferred Tax 0.02 -0.09 LP 1.52 -1.83 LP
PAT 9.06 3.05 197 11.52 11.77 -2.1
(Source : Capitaline)

Latest Data As On 03/09/2007
Latest Equity(Subscribed) 9.39
Latest Reserve 112.32
Latest Bookvalue -Unit Curr. 129.62
Latest EPS -Unit Curr. 18.67
Latest Market Price -Unit Curr. 157.05
Latest P/E Ratio 8.41
52 Week High -Unit Curr. 182
52 Week High-Date 7/30/2007
52 Week Low -Unit Curr. 97.6
52 Week Low-Date 2/21/2007
Market Capitalisation 147.47
Stock Exchange BSE
Dividend Yield -% 1.91
(Source : Capitaline)

The company’s performance was severely impacted last year due to the outbreak of bird flu. The situation seems to have improved considerably now. For the quarter ended June 07, the company has reported a 36% increase in its Revenues to Rs.121 crores, the PAT has increased by around 200% to Rs.9.06 crores resulting in a EPS of Rs.9.60 for the quarter. The company has improved its Operating Margins from 8.2% to 14.2%, inspite of the high prices of Maize, a key input.

Conclusion:

Venky's India is the largest and No.1 player in the organised sector in the Indian poultry industry, an industry where it is difficult to even recall a No.2. The company has totally integrated operations and has units spread at 30 locations across the country. The company has set up a new plant which will process 44,000 chickens a day to make Teriyaki, to be exported to Japan.
The business carries some risks, major ones being – 1) The performance of the company can be severely impacted in the event of re-occurrence of bird flu disease; and 2) The increase in the prices of Maize, a key raw material can impact profitability.

We like the business model of the company – the company has presence in both the Institutional and Retail segment and also in Exports. Venky’s is a national brand and enjoys the positioning of a hygienic premium product and has a nationwide distribution network.

Taking a stake in Venky’s India is akin to taking an exposure in the Indian Poultry industry, at a ridiculously low market cap of under Rs.150 crores. The stock is currently underowned by the Institutional Investor. However, given the size and scale of operations of the company and its leadership position in the Industry, the stock has the potential to attract the Institutional Investors. The promoter group acquiring the shares of the company through open markets in the recent past is another positive. Smart investors will do well to accumulate the stock at the current levels and on declines. The stock may well turn out to be the McDowell of the Indian poultry industry.

MULTIBAGGER : Hotel Leela

S.P.Tulsian, Investment Advisor

Hotel Leela Venture : Reco Price Rs. 43.50 CMP: Rs.43.50 (Gain 0.00%)

For FY 07, the topline of the company was Rs 411.83 crores, EBITDA was at Rs 212.84 crores, PBT of Rs 189.51 crores and PAT of Rs 126.24 crores. EPS was at Rs 2.31 and at Rs 3.41 after considering exceptional gain.

Hotel Leela venture presently have hotels in Mumbai, Bangalore, Goa and Kovalam Beach and is setting up hotels at Gurgaon, Udaipur, Chennai, Hyderabad and Pune, which would be operational between 2007 and 2010.

For FY 07, the topline of the company was Rs 411.83 crores, EBITDA was at Rs 212.84 crores, PBT of Rs 189.51 crores and PAT of Rs 126.24 crores. This PAT is after booking an exceptional gain of Rs 40.58 crores, without which, PAT would have been Rs 85.66 crores. EPS was at Rs 2.31 and at Rs 3.41 after considering exceptional gain.

For June 07 quarter, the total income of the company, was at Rs 103.47 crores, with EBITDA of Rs 52.29 crores, PBT of Rs 35.92 crores, and PAT of Rs 30.16 crores, resulting in an EPS of 81 paise, on face-value of Rs 2 per share.
The company has acquired, a 3 acre plot in South Delhi for Rs 611 crores in March 07, and since then, market is apprehensive on future working, expecting company to go in huge debt, thus adversely affecting its financial working. However, the company is confident, in view of Commonwealth Game in 2010, and is setting up 7 Star Deluxe hotel.

The massive expansions at Gurgaon, Udaipur, Chennai, Hyderabad and Pune is also not well received by the market. However, management maintains that all are growing cities and this would give Pan India presence to the company, as also giving good growth from FY 08 onwards in phases, till FY 11.
The booming season for hotel industry is from October to March every year. The company has also started charging room rent in rupee based tariff which would improve its margin in peak season.
For FY 08, the company shall be able to post a topline of Rs 475 crores and PAT of Rs 125 crores, resulting in an EPS of Rs 3.40 per share.
On forward earning of FY 08, the share is ruling at a PE multiple of close to 13, which is very low, for any leading hotel chain. Due to lack of interest in hotel stocks and more especially for company, the share is now ruling at Rs 43 levels, which makes it a risk free buy for an expected return of 50% in the next 6 to 12 months.

Welspun Gujarat Stahl Roh

PN Vijay, Investment Advisor

Welspun Gujarat Stahl Roh : Reco Price Rs. 247.35 CMP: Rs.247.35 (Gain 0.00%)

Welspun Gujarat Stahl Rohren is a part of high growth sector. The oil and energy sector is becoming very big in India and India is emerging as the pipe manufacturing hub due to its lower cost of production. Welspun is the largest player in this segment.
Welspun Gujarat Stahl Rohren Ltd
Welspun is a leading player in Steel Pipe and Tube manufacturing sector. It caters to the growing oil and energy industry, both domestically and overseas. It has shown spectacular growth and has also expanded and integrated its production capacities fast.
Financial Highlights:
For the first quarter of FY-2007-08 the company put up an impressive performance. While the revenues grew 50.5% to Rs 806.7 crores, the Net profit grew in a very robust fashion up 164% to Rs 69.3 crores. The operating margin went up a whopping 3.7% to 16.6% mainly due to the profitable global orders from Exxon Mobil and Kinder Morgan.
Reasons to buy:
- Part of high growth sector. The oil and energy sector is becoming very big in India and India is emerging as the pipe manufacturing hub due to its lower cost of production. Welspun is the largest player in this segment.
- Welspun can boast of an impressive client list which includes many overseas giants, apart from Indian majors.
- The company is completing a backward integration project with an installation of a plate mill. This will expand the margins and boost the bottom line for 2007-08.
- The company has commissioned a plant in the US to service that profitable market.
- The profit growth has not been fully discounted in the valuation on a forward PE basis. The company is attractively priced 16 times its 2007-08 earnings. This compares favourably with a profit growth of more than 100% which Welspun is witnessing.
Concerns:
- A slow down in oil and exploration and production may lead to reduction in order book.
- High Steel prices may make a dent on fixed price contracts which the company presently may have.
Recommendation:
We recommend this share at the current level with the target price of Rs 400 in the next 12 months.

OPTION CALLS FOR SEPTEMBER

FRNDS HERE I M GIVING FEW OPTIONS CALLS FOR SEPTEMBER AS ME EXPECTING SEPTEMBER MONTH POSITIVE BIAS N LESS VOLATILE :-

1.Buy REL 800 ca at 30 or below, tgt 60..

2.RIL 2010 call at 39 OR BELOW TGT 100..

3.SBIN 1620 call AT 60 OR BELOW N tgt 110..

4.BUY HINDUNILEVE 210 CALL AT 4 OR BELOW TGT 8..

5.BUY IDBI 125 CALL AT 7 N BELOW TGT 14..


RULES FOR TRADING IN OUR OPTIONS CALL:-

1. TAKE 2 N MULTIPLE LOT SO THT U CAN SELL 1 WHEN CALL PREMIUM GET DOUBLE N HOLD ANOTHER FOR UNLIMITED PROFITS..

2. TAKE POSITIONS IN ALL CALLS SO IF U GET IN LOSS FRM OUR 1 CALL THN COVER FRM OTHER..

3. TGT PERIOD IS TILL EXPIRY..

4. NO STOPLOSS, WHOLE PREMIUM IS SL MEANS HOLD TILL IT EXPIRY OR TILL IT GET ZERO..

5. SO READ ALL RULES CAREFULLY N SPECAILLY 4 NUMBER, THN INVEST, BCOZ WE DNT SUGGEST ANY SL..

CALLS FOR 31 AUGUST 2007

CALLS FOR 31 AUGUST 2007



FUTURE SEGMENTS

SWING TRADING CALLS



1. Buy GTL infra @ current levels. T- 227/232/235/244 (By expiry) . No SL but hedge position with a put.



2. Buy Jindal steel @ current levels T- 3937/4000/4069+ (By expiry) . No SL but hedge position with a put.



INTRADAY CALLS



1. Buy BPCL above 312 T- 315 SL- 309



2. Short Century Textiles If trades below 767 T- 763/756 SL- 774



3. Buy IDBI @ 119 T- 120/122 SL- 118



4. Short Nifty if trades below 4000. T- 4375 SL- 4425



(All are future prices & for Sep series only)

PERFORMANCE OF CALLS FOR 30 AUGUST 2007

PERFORMANCE OF CALLS FOR 30 AUGUST 2007



FUTURE SEGMENTS

SWING TRADING CALLS



1. Buy RNRL Call of 45 call @ (45) current levels T- 46.50/47.50. SL- 43.45 (by closing)

OR Buy Sep fut @ 45 with a SL of 43.45. T- 46.50 & 47.50. Positional



2. Buy Bharti Airtel @ 880 T- 896/920+ SL- 848. or Buy 900 call target & SL s are same. Positional





(In swing tradings Targets will be upgraded when target-2 will be achieved)



INTRADAY CALLS





1. Buy SBI above 1573 T- T- 1605/1630 + SL- 1543 Targets achieved

2. Buy HDFC Bank above 1160 T- 1168/1176 SL- 1150 Targets achieved



3. Buy AIA Engg above 1440. T- 1440/1470. SL- 1420 Target 1 achieved (But there was an error in typing instead 1430 it was written as 1440)

CALLS FOR 30 AUGUST 2007

FUTURE SEGMENTS

SWING TRADING CALLS

1. Buy RNRL Call of 45 call @ (45) current levels T-

46.50/47.50. SL- 43.45 (by closing)
OR Buy Sep fut @ 45 with a SL of 43.45. T- 46.50 & 47.50.

2. Buy Bharti Airtel @ 880 T- 896/920+ SL- 848. or Buy

900 call target & SL s are same.

(In swing tradings Targets will be upgraded when target-2 will

be achieved)

INTRADAY CALLS

1. Buy SBI above 1573 T- T- 1605/1630 + SL- 1543

2. Buy HDFC Bank above 1160 T- 1168/1176 SL- 1150

3. Buy AIA Engg above 1440. T- 1440/1470. SL- 1420

( All are future prices & for Sep series only)

OUR LAST 7 DAYS PERFROMANCE

FOLLOWING ISOUR LAST 1 WEEK BUYING CALLS PERFORMANCE IN DOWN MKT, NO SHORT CALL, ONLY BUY CALLS IN SUCH BAD MKT ALSO !!

DATE SYMBOL CALL LOT SIZE ENTRY EXIT PROFIT/LOSS

09-Aug GESHIP BUY 1200 354 358 4800
09-Aug BHEL BUY 300 1743 1757 4200
10-Aug BHEL BUY 300 1682 1692 3000
10-Aug IDFC BUY 2950 123.5 124.8 4425
10-Aug NIFTY BUY 50 4225 4265 2000
10-Aug JPHYDRO BUY 6250 45.2 46.5 8125
13-Aug IDBI BUY 2400 123.5 128.5 12000
14-Aug NIFTY BUY 50 4327 4350 1150
14-Aug RIL BUY 150 1824 1836 1800
16-Aug IDBI BUY 2400 118.5 121 6000
16-Aug BONG REF BUY 4500 51 56 22500
17-Aug NIFTY BUY 50 4080 4120 2000
17-Aug NIFTY BUY 50 3980 4140 8000
17-Aug IDBI BUY 2400 115 119 9600
17-Aug REL BUY 550 729 739 5500
20-Aug NIFTY BTST BUY 50 4090 4230 7000
20-Aug SBI BTST BUY 250 1540 1585 11250
20-Aug GNFC BUY 2950 131 137 17700
20-Aug KOTAK BUY 550 678 690 6600

TOTAL PROFIT 137650


INVESTMENT CALL PROFIT TILL NOW


10-Aug NAG FERT 14000 25.25 OPEN 175000