KS Oils infuses Rs 370cr in greenfield venture

Commenting on the Rs 370 crore backward integration, Sanjay Agarwal, Managing Director and Chief Executive Officer, KS Oils, said it was part of the company's strategy to do backward integration in palm plantations. This greenfield project will be routed through the company’s Singapore subsidiary. KS Oils has made an investment of Rs 370 crore, Agarwal said, adding that 20,000 hectare of land has been bought for the same purpose. The company has already invested Rs 50 crore in the venture, and the remaining will be arranged from KS Oils' cash accrual and debt.

UK ruling in SABIC case will impact net profits: Punj Lloyd

Punj Lloyd’s wholly-owned UK subsidiary Simon Carves Limited (SCL) had commenced adjudication proceedings against SABIC Petrochemicals UK (SABIC) in January. The proceedings were ultimately aimed at seeking restitution of 28.5 million pounds sterling or Rs 220 crore through the UK courts.

However, today, the UK adjudicator has ruled in favour of SABIC and has thereby moved on to the next stage of dispute resolution.

Commenting on the same, Atul Punj, Chairman of Punj Lloyd, said the company will be appealing this case to a higher authority in the SABIC case. But the legal process will take a year or 12-14 months, he added.

Punj feels there is some contradiction in the ruling that has come.

He said the ruling will have negative impact on the company’s net profits, but will not impact the business.

“We are taking some rationalization measures at SCL and the other projects of SCL are on stream,” Punj added.

Reduce Sesa Goa, target of Rs 90: Emkay

Emkay Global Financial Services has maintained its reduce rating on Sesa Goa with a target price of Rs 90 in its April 21, 2009 research report.

"Sesa Goa reported 4QFY09 and FY09 results, which are in line with our estimates. For 4QFY09, net sales stood at Rs 15.7 billion (yoy down 7.8%, qoq up 5.8%), EBITDA stood at Rs 7.4 billion (yoy down 39.3%, qoq up 28.8%) and PAT stood at Rs 5.5 billion (yoy down 32.5%, qoq up 16.3%). Sesa reported EPS of Rs 6.96. For FY09, net sales stood at Rs 52.3 billion (yoy up 36.8%), EBITDA stood at Rs 25.1 billion (yoy up 8.9%) and PAT stood at Rs 19.9 billion (yoy up 29%). Sesa reported EPS of Rs 25.25."

"The company has maintained its guidance for 20-25% volume frowth for FY10E. As on 31st March ‘09, Sesa has cash balance of Rs 41.4 billion. We maintain 'REDUCE' on the stock with revised target price of Rs 90 (1.2x FY10E book value)," says Emkay Global Financial Services' report.

HCL Tech may correct up to Rs 125: Gujra

Technical Analyst, Ashwani Gujral is of the view that HCL Technologies may correct up to Rs 125. It has resistance at Rs 144.

Gujral told CNBC-TV18, "HCL Technologies has been showing some strength. Overall midcap IT recently has been showing more strength than largecap IT. HCL Technologies could correct today to about Rs 125 and its got resistance now at Rs 144."

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.

Punj Lloyd has support at Rs 83: Gujral

Technical Analyst, Ashwani Gujral is of the view that Punj Lloyd has support at Rs 83.

Gujral told CNBC-TV18, "Punj Lloyd is underperforming its peers. It’s got strong support at Rs 98 and in case that gets broken then it could probably even fall towards Rs 83. I think resistance is at higher levels around Rs 120-125 from where it started retreating.”

Disclosure: It is safe to assume that analyst and his clients may have an investment interest in the above stock/sector.

Suzlon to set up Rs 50,000-cr steel plant

 

Wind energy major Suzlon will invest nearly Rs50,000 crore to set up an integrated steel plant in Bijapur district of Karnataka. A high-level committee of the state government chaired by chief minister B S Yeddyurappa today cleared the Suzlon project among 15 proposals, involving total investments of Rs75,541.25 crore. The Suzlon project, which will come up in four phases, is expected to create 9,000 jobs, minister for major and medium industries Murugesh R Nirani said.

 

Adlabs Films to invest Rs 100 cr

Adlabs Films plans to invest about Rs 100 crore to convert 300 of
its existing 425 movie screens into digital format in the next 18-
24 months. Converting conventional screens into the digital format
will allow Adlabs to offer better picture quality to audience
besides swifter distribution of movie prints.

The move would also help Adlabs curb piracy which tends to originate
when the conventional physical prints are transported to various
locations. Adlabs which runs its movie exhibition business under the
Big Cinemas brand in India, Malaysia and US, has already started the
process of digitalisation in its US movie theatres

NTPC, Nuclear Power to Spend $3 Billion on India Atomic Plants

Indian state-run firms NTPC Ltd and Nuclear Power Corp of India Ltd have agreed to form a joint venture to build a 2,000 megawatts nuclear power plant in India.

 

NTPC, India's largest power utility, will hold 49 percent stake in the venture, it said in a statement over the weekend. Nuclear Power Corp will hold the majority 51 percent stake.

It did not disclose financial details, but Indian newspapers estimated investment in the join venture would total 150 billion rupees ($3 billion) over eight years, with the two firms bringing in 50 billion rupees as equity.

 

India signed a nuclear pact with the United States last year, giving New Delhi access to civilian nuclear fuel and technology for the first time in three decades, and opening up a potential multi-billion dollar market to global trade.

 

HCC bags Rs 296.90 cr order from Himachal Pradesh govt

Infrastructure firm Hindustan Construction Co Ltd said it has bagged an order worth Rs 296.90 crore from Himachal Pradesh Power Corporation for construction related works.

 

In a filing to the Bombay Stock Exchange, the company said that it has received a letter of award from Himachal Pradesh for Kashang Hydro Electric Power Project which is to be completed in 45 calendar months.

 

The scope of work includes contraction of civil works comprising river diversion, power channel and civil works of underground power house, the filing added

Next Bull Rally Has Begun (Read This)

The next “bull-market” rally has begun and there are bargains in every emerging market following a record slump in stocks, Templeton Asset Management Ltd.’s Mark Mobius said.

“You are going to see a lot of bouncing off the bottom because there’s a tremendous amount of uncertainty in the market,” Mobius said, “But I have a feeling we’re at the bottom and now we’re building a base for the next bull market.”

Mobius correctly predicted in December that emerging markets will rebound before developed nations. In 1999, he was voted among the “Top Ten Money Managers of the 20th Century” in a survey by the Carson Group, and in 2006 he was included in the “Top 100 Most Powerful and Influential People” by Asiamoney magazine.

Courtesy : Bloomberg.com

Valecha Engineering gets projects worth 1.36 bln rupees

Valecha Engineering Ltd said on Monday it has won projects worth 1.36 billion rupees for infrastructure projects at Delhi and Srinagar.

A project for road resurfacing of a runway at Srinagar is worth 710 million rupees, while the other, for construction of an underpass near the domestic airport at Delhi is worth 650 million rupees, the company said in a statement to the exchange.
The firm also said it has formed a wholly owned subsidiary at Sharjah, UAE, known as Valecha International FZE.

HDIL has target of Rs 148: Bose

Technical Analyst, Rajat K Bose is of the view that Housing Development and Infrastructure (HDIL) has target of Rs 148.

Bose told CNBC-TV18, "In HDIL I am looking at a target of Rs 148 and it is one counter in the realty space, it gives very strong moves either ways. If it falls, it falls dramatically and when it rises back it rises equally dramatically. So now the next target would be Rs 148 and if that is crossed then Rs 154 would be the target. My clients might be holding this stock in their trading portfolio."

Disclosure: Analyst doesn't hold the above stock but his clients might have holding.

Remain invested in Suzlon Energy: Tulsian

Investment Advisor SP Tulsian is of the view that one can remain invested in Suzlon Energy.

Tulsian told CNBC-TV18, "This is definitely not the level to make a fresh entry in Suzlon Energy, but those who are holding can definitely remain invested because the company is making all the efforts by raising money and increasing their stake in RE Power, which they have been holding on. There is a good value in that company also.”

He further added, “If one sees the overall market cap of the company it is close to 2 billion which itself is quite low. Taking all into consideration I do not think that entry at these levels at Rs 60 is feasible. If somebody wants on a day to day trading basis can initiate a long call but with a stoploss. For the investors I do not think this is the right time to buy maximum, if one is invested remain continued or holding it.”

Disclosure: Analyst doesn't hold the above stock.

Tata Steel can touch Rs 330: Bose

Technical Analyst, Rajat K Bose is of the opinion that Tata Steel can touch Rs 330.

Bose told CNBC-TV18, "If Tata Steel is an investment, I would say, you need not worry about much because Tata Steel after forming a base for about six months, it has actually moved up. In 40 calendar days right from a low of Rs 148 yesterday it went to a high of Rs 199 and today also it has moved up but a stock that has moved up nearly 100% or even more in 40 calendar days and being a largecap stock there is some risk buying it here."

He further added, "If the stock manages to sustain above the Rs 293-295 range then there is a possibility that it may actually move up to test its 200 day moving average around at Rs 330. So beyond Rs 299 the target would be Rs 330 if it is a trading stock and if it is investment then just hold on."

Disclosure: Analyst doesn't hold the above stock but his clients might have holding.

Buy Andhra Bank, target of Rs 74: Karvy Stock Broking

Karvy Stock Broking has recommended a buy rating on Andhra Bank with a price target of Rs 74 in its April 17, 2009 research report.

"In 4th QFY09, we expect the bank to record 22% growth in deposits and 31% growth in net advances and would report 39% (Y/Y) growth in net interest income (NII) to Rs 4.5 billion; in this quarter growth rates in credit and deposits and better cost of funding would marginally enhance margin. Andhra Bank's fee-based income growth would drift down and treasury income would be absent. We estimate that the bank's other income would de-grow by 22% (Y/Y) and total net income would grow by 15% (Y/Y)."

"We expect loan losses provisions of Rs 450 million compared to Rs 285 million in Q4FY08; we estimate the bank's bottomline to grow by 6.9% (Y/Y) to Rs 1.33 billion. We rate the stock as a BUY with a price target of Rs 74 at 1.05x adjusted book value FY2010," says Karvy Stock Broking's research report.