GMR Infrastructure Q3 net profit at Rs171.10 mn

Details at

http://www.indiainfoline.com/Markets/News/GMR-Infrastructure-Q3-net-profit-at-Rs171.10-mn/5078567648

China Interest Rate Increase

China's central bank raised interest rates to fight inflation. Benchmark Deposit Rate stands at 3% and lending rate at 6.06%

NTPC to gain if RIL-NTPC dispute heads for truce

Solicitor General recommended that NTPC be given gas at a concessional rate under a provision of the production sharing contract.

RIL can sell gas below market rate to government or government nominee so NTPC can get gas at $ 2.34 which was price quoted in 2004 tender.

NTPC is already working on the gujrat plants hoping to get the gas. Gas will be allotted to the plants which are expected to complete this year.

If NTPC gets price at lower rate this will improve profitability and secure gas for the plant in long term.

Might be good new for NTPC which is trading in a narrow range of 190-200 for past few months without any news trigger

Coal Block Development to get Boost

The Lok Sabha has cleared amendment of Mines and Minerals Development and Regulation Act (India) (MMDR) of 1957.

Currently coal blocks for PSU (public sector unit) and private sector companies are not allocated through bidding process. A screening committee approves the blocks. This will change and now there will be competitive bidding process.

PSUs are kept outside of bidding process like Coal India. Coal blocks will be developed faster as new players will pay premium based on bidding.

26 blocks are fully developed out of 206 allotted till now.

If private players get more blocks, power production will get a leg up and many companies planning to foray into coal based power plants will see interest in obtaining the coal block for captive purpose.

Blackstone invest in Moser Baer Power Project

Moser Baer India shares jumped 11% intraday closing 6.66% up.  Blackstone has invested 300 million dollar.

Moser baer is company involved with making cd/DVD/Blue ray disks. It is also in Solar power and Entertainment business . Now it is entering thermal power with plans to setup around 4000 MW in thermal and 1000 MW in solar.

Deepak Puri and Ratul Puri, who are the promoters of Moser Baer India Ltd has founded  Moserbaer Projects.

GMR Infra awake from Slumber

China Huaneng Group may be buying GMR infra stake in Intergen at about 1.4 Billion dollars. GMR Infra bought Intergen at 1.1billion dollars. Apart from making profit of 300 million dolllars GMR will use other money to reduce interest liability which was dragging the profits down.

Lower Intereset Outgo with higher revenue increase due to delhi airport t3 opening and restarting of barge mounted power plants are big plus.

Fund tie up for other airport and power projects will get a boost. If the deal goes through it will be a very big positive for GMR Infra.

Hopefully the bad days should be near soon and should start its upward climb.

Should be in a much better price by next quarter results.

GMR is up 4.5% in today's trade.

RIL Reliance Industries and Shale Gas

Shale gas is natural gas produced from shale. Shale gas has become an increasingly important source of natural gas in the United States over the past decade, and interest has spread to potential gas shales in Canada, Europe, Asia, and Australia. One analyst expects shale gas to supply as much as half the natural gas production in North America by 2020 [Source:Wikipedia.]


Illustration of Shale Gas


It's another fossil fuel boom in the making, although its cleaner-burning than coal, gas from shale still poses a severe threat to environmental security. Methods used for drilling that frees the gas requires the use of toxic chemicals that many fear could contaminate underground sources of drinking water that supply millions of people.



Reliance Industries believes that shale gas offers an exciting opportunity and that new drilling techniques are transforming the U.S. natural gas industry. Furthermore, the company estimates shale plays to contain in excess of 650 trillion cubic feet of natural gas.


Shale gas is emerging as a potential investment strategy, chiefly on the anticipated upsurge in demand for natural gas.


Natural gas is a clean energy source and is likely to replace coal.


Reliance has done 3 shale gas deals in 3 months.


20% stake in Carrizo's

40% stake in Atlas Energy's

45% stake in Eagle Ford Shale




Higher price of Shale gas is also attracting lot of interest and investment.



Shale gas investment will add profitability after 4-5 years but its an interesting space to watch out for in the coming years.

GMR Infra results Update.

 GMR Infra Q1 PAT up by 26% at Rs 28 cr


Revenue increased marginally but it was because barged mounted plant was getting shifted and its going to be running in fully capacity by August end.


This plant can contribute around 100 crore quarterly.


In 2 years operational capacity of power plants will go upto 2800 from 800 MW currently.

 Male airport to achive financial closure by September.



GM Rao said that debt ratio might increase more or stay same but not go down because many projects are in capital infusion phase.



According to some analyst Medium term target is 70 and stop loss is around 54.

GMR Infra Updates

GMR Infra has put the international power portfolio for sale. Intergen which operates power plants in US,Australia was bought by GMR in 2008 where it paid around 960 million dollars for 50% stake.

GMR is building number of power plants in India and also has a barged mounted plant.

Recently DIAL t3 terminal got opened which is build by GMR Infra. They are also planning to invest around $ 400 million for Male airport.

All its projects are long gestation and this stock can give returns in long term though slowly. Once the investment phase is over P/E ratio will improve and stock price will rise. Holding for atleast 2 years will give good returns

Irrational Exeburance in Primary Markets (IPO)

 Primary market is back in boom after lying low for quite some time. Other than PSU FPO or IPO. Private sector IPOs are getting subscribed more than 50-100 times. QIBs and NIIs are subscribing almost more that 100 times.

Is there a strong appetite or it is a signal that a bubble formation has started and its time to exit. Only coming time will tell whats the truth.

REC FPO though just managed to subscribed has given substantial gain from Rs 203 FPO price and current price of Rs 255. Retail got full allotment on 1 lac because of low response and are sitting on a healthy profit of Rs 25000.

NMDC is also around Rs 350 and retail is going to get at Rs 285 with gaurantee of almost full allotment.

Other IPOs are getting subscribed 40-50 times and getting allotment is almost luck or you might be lucky to get 1 lot which doesn't make much profit.

I think now is the time to think which company offers good long term benefits and go for it even though the IPO/FPO might not be getting subscribed. If your conviction is correct then you can make huge amount of money.

Lets see how the coming IPOs fare. Here are few which must be watched

#NMDC
# IL&FS Transportation Networks Limited
# PRADIP OVERSEAS LIMITED
# PERSISTENT SYSTEMS LIMITED
# SHREE GANESH JEWELLERY HOUSE LIMITED

New Affordable Housing Projects in Bangalore

Here are few Housing projects which are yet to complete and will be complete in few months or around 1-2 years

HM Capital (Marathahalli)

HM North City (Yahalanka)

SJR Unity (Marathahalli)

NItesh Flushing meadows (whitefield/ITPL)

Provident-WelWorth City (doddaballapur)

Kumar Prince Town (JalaHalli)

Westend Heights New Town (BTM Extension)

Patel Smondoville (Neotown)

Plama Heights (Hennur Road)

Rohan Mihira (Marathahalli)

Rohan Jharokha(old airport road)

Alpine Pyramid (Sahakar Nagar)

Alpine Eco (Marathahalli)

Jubilant Food's IPO Listing Rocked

As suggested on 16th January to subscribe to Jubilant IPO, the listing has rocked and stock gained 65% on listing and is 10% up again today.

Anchor investor has bought additional stake on listing and counter witnessed huge buying interest.

Hope the PSU IPOs and FPOs get a good response after lack luster response to NTPC. bad response can be attributed to weak market conditions and operators trying to beat the stock.

NTPC at this price seems to be a low risk even though it goes below FPO price. 10-15% annual gains are easily expected.

Infinite computers also good positive listing , Adani power which was priced at Rs 100 is also above the IPO price at 110 currently with 10% return.

Moser Baer at current price look attractive and GMR infra around Rs 50 or lower seems to be a good bet. It has lot of annuity and toll projects which will provide cash flow for next 20-30 years.

Lot to look out in the next few weeks. Rail Budget, General Budget, interest rate, food inflation and oil prices etc.
News from european/american markets is not too positive and tilting towards negative so next trigger has to come from internally to take the market to the intermediate high so I think in February market seem to be going no where overall with usual ups and downs with overall flatish so we can consider it as a traders markets and not investors for atleast this month till we get cues towards some direction.

Markets in coming days

As expected stock market has corrected and might correct more today seeing bad results from ICICI Bank , L&T. Baking and Engineering/Construction space will be affected.

Dollar hardening also has made carry trade difficult which will also reduce inflow.

This is what I wrote last week

"Soon we should see some correction in the market and should avoid playing the dangerous waters of worthless stocks and should probably book some profits and keep money on the table for the opportunities which will arrive after the correction."

This fall should help people to enter in good stocks who missed the recent rally

IFCI under F&O curb

IFCI was today banned for F&O trade.

Futures & Options For Dummies

It is expected that more stocks will come under curb..many stocks are hitting upper circuits and you can see lot of circuit stocks around. Lot of midcap and small cap are way above 52 weeks high.

Volatility has increased in the market and every has started giving recommendations. Punter stocks, penny stocks, stocks less than Rs 10 are back in flavour.

The Guide for Penny Stock Investing

When money has nothing to chase after large cap/mid cap, small cap and other value/growth stocks it chases these dud stocks which otherwise have no takers. This kind of situations tells us that market is in its last leg up medium term upmove.

Soon we should see some correction in the market and should avoid playing the dangerous waters of worthless stocks and should probably book some profits and keep money on the table for the opportunities which will arrive after the correction.

I will list some stocks which are monthly gainers/losers.

The Neatest Little Guide to Stock Market Investing

Monthly Gainers	Prev Price	Current Price	% Gain
Panchmahal Steel	68.5	168	145.26
Neha Internation	38.3	88.9	132.11
JMDE Packaging & Rea	2.85	6.53	129.12
Mahan Industries	18.06	40.35	123.42
Twentyfirst Cent	14.01	31.2	122.7
Aviva Industries	14.3	31.25	118.53
Invicta Meditek Ltd.	4.46	9.73	118.16
Hittco Tools Ltd.	7.8	16.75	114.74
Regency Trust Lt	14.33	30.2	110.75
Integra Capital	9.53	19.7	106.72
Pressure Sensiti	2.42	4.93	103.72
Subuthi Finance	18.75	38	102.67
Sungold Capital	6.61	13.39	102.57
Clutch Auto	43.85	81.9	86.77
Triveni Glass L.	7.2	13.19	83.19
Alpha Hi-Tech Fu	2	3.57	78.5
Lakshmi Mill Co.	1,397.65	2,400.00	71.72
M K Exim (India) L	10.44	17.45	67.15
Tayo Rolls Ltd	109.65	179.2	63.43
Linc Pen & Plast	44.7	72.85	62.98
Monthly Losers	Prev Price	Current Price	% Gain
JaiprakashAssociates	222.35	164.5	-26.02
Maruti Suzuki India	1,578.85	1,422.00	-9.93
HDFC	2,617.90	2,525.05	-3.55
Hindustan Unilever L	265.8	257.25	-3.22
Lupin Ltd.	1,435.00	1,393.00	-2.93
Hero Honda Motor	1,666.20	1,628.45	-2.27
Jindal St & Pwr	712.85	697	-2.22
Godrej Industries Lt	173.9	170.05	-2.21
Bajaj Auto Ltd.	1,742.70	1,706.50	-2.08
Jet Airways	550.55	539.5	-2.01
Nestle India	2,607.85	2,560.00	-1.83
GlaxoSmithKline Phar	1,603.65	1,575.00	-1.79
ITC Ltd.	251.85	248.2	-1.45
Cipla	345.7	341.1	-1.33
Piramal Healthcare L	396.5	392	-1.13
HDFC Bank	1,698.60	1,683.00	-0.92
Religare Enterprises	387	383.5	-0.9
L & T	1,680.80	1,667.00	-0.82
Balrampur Chini	135.75	134.8	-0.7
SBI	2,180.75	2,169.00	-0.54
P&G Hygiene&Health	1,737.85	1,730.00	-0.45
MMTC Ltd.	34,941.80	34,800.00	-0.41
Dabur India	163.15	162.5	-0.4

Islamic Search Engine : Sharia Complaint

There are so many areas in day-to-day sphere where Islamic law applies to people of muslim community. So many restaurants,banks, funds, etc caters to this specific need.

Here is a small list

Islamic Restaurants which serves halal meat.



Islamic Banks-system of banking or banking activity that is consistent with the principles of Islamic law (Sharia)


Islamic Mutual Funds- Funds which invest in companies that operate according to Islamic Sharia principle.


Islamic Index. - Index of stocks of companies compliance with Sharia law.


Screening removes companies involved in such products alcohol, pork-related products, conventional financial services (e.g. banks and insurance companies), entertainment (e.g. hotels, casinos, gambling etc.), tobacco, and weapons and defense. A second level of DJIM(Dow Jones Islamic) screening based on financial ratios, is intended to remove companies based on debt and interest income levels in their balance sheets.


Islamic law is now the most widely used religious law, and one of the three most common legal systems of the world alongside common law and civil law

Now comes Islamic Search Engine -ImHalal.com The world's first search engine which will help muslims safely surf the web without embarrasment of viewing explicit or sexual content.
This is really a unique idea and can be used by people of other faith and by childrens.

NHPC listing Date on Stock Exchange

UPA govt first public sector offering NHPC will list on 1st September on the Indian Stock Exchanges.

NHPC IPO Allotment Status & NHPC Grey Market premium

NHPC IPO Allotment Status now available at

Check Status Now

Current Grey Market premium is around Rs 4-5 .
713 shares have been allocated if you have applied for complete lot at upper band.


Other News :-
GMR Infra saw some good rally after long time.
Aban Offshore saw huge rally with stock increasing about 26% in a day.

Other Grey market premium
Oil India 950 to 1050
155 to 160
Jindal Cotex 70 to 75
3 to 4
Globus Spirits Ltd. 90 to 100
5 to 6

New Direct Tax Code : Government Putting money in citizens Pocket

Pay only 10% tax on 10 lac salary :O. This is kind of good news. More money will trigger more spending and stimulate the economy.

Savings limit is also going to be increased from 1 lac to 3 lacs.

For traders and Investors STT will be abolished.

Govertment Securities Interest tax free and business loss can be carry forwarded indefinitely.

Some good news in otherwise dull market in absence of monsoon.

Satyam ADR UP!!

Satyam computers is up around 60% today in the US markets. Tomorrow indian market will be closed on account of Mahavir Jayanti so traders in india wont be able to see this upswing in local market. If the rally continues tomorrow then probably on wednesday Satyam computer could see a big upswing.

Wilbur Ross and Larsen & Toubro (L&T) might be planning to jointly bid for Satyam. Satyam is going to decide stake sale on 13th April.

As the date of stake sale is nearing the stock is showing fresh interest after sagging for last fews days.

India Votes 2009 General Elections.

World's largest democracy with more than 1 billion people will go into election in few weeks. I am happy to see lot of voter activism this year and hope that people of this country will vote for good people and for a stable goverment.

From jaago re campaign [jaagore.com] helping people to get their voter id registration done to other thousands of NGOs are extensively involved in the awareness campaign.

National Election watch is providing information about right to vote and electoral reforms. It has the facts and figures about all the MPs in the current lok sabha.

LOK SABHA 2004 - FACTS AND FIGURES


Amir Khan is also involved with the association for democratic reforms and has produced videos aired on television urging voters to vote.



To do my own part, I would request all the blog readers to exercise their franchise and spare some time on the election day to vote.