Neyveli Lignite Corporation Ltd [NLC] owns the largest mines in India. It is a a 93.6% government owned company, was incorporated in 1956. It is engaged in lignite mining and power generation. The company owns the largest open cast mechanised mines in India, all situated around Neyveli in Tamil Nadu. (more…)
Year: 2008
JPT Securities – What’s Cooking ?
A BUY was first recommended on JPT Securities on the 26th of May. Since then the stock has tripled and still locked in upper circuit today at Rs 124.
Lets closely look at what has happened in JPT Securities. JPT Securities suddenly came into the spotlight, striking an all-time high of Rs 124. They have appreciated 302.76% in the past quarter. The one-year period return was a massive 985.81%.
The rally materiliased after the promoters, headed by Managing Director J P Totla, sold their entire stake of 18.05 lakh shares, or 60.06%, at Rs 32.10 per share to Awaita Properties, Mumbai [Promoted by Nikhil Gandhi and Bhavesh Gandhi]. The shares were sold through a block deal on the BSE on 24 April 2008. Consequently, the promoters also agreed to transfer the management control to the acquirer.
On 30 April 2008, Awaita Properties launched an open offer to the public shareholders for acquiring an additional 20% stake in JPT Securities, at Rs 32.5 per share, as per the Sebi guidelines. The company’s equity share capital is Rs 3.01 crore, with face value of Rs 10 per share.
Nikhil Gandhi is said to be the right hand of Reliance Industries’ CMD,Mukesh Ambani. Speculation is rife in the market that Nikhil Gandhi will opt for a backdoor listing of his Mumbai-based SKIL Infrastructure.
What is the Modus Operandi employed by Gandhi and Mukesh Ambani ?
Ambani’s no doubt create wealth for shareholders, but in turn they create more wealth for themselves. Infrastructure is currently a Big Game. They want to unlock the value on this theme of their privately held companies and projects. If you look at what has happened to Horizon Infrastructure [PDF]- They buy a company which is listed in BSE completely, go for an open offer mop up as much more shares as possible. Now Change the name of the company and Transfer Big Infrastructure projects to this company thus giving it a way of backdoor listing.
If you have thoughts to share, you may write to feedback @ dalalstreet dot biz.
Indian Party Spolied for Sure, But Not Over
In a somewhat bold report written by Citigroup Economists, they are of the view that the Indian Party Sp’OIL’ed for Sure, But It’s Not Over [Reason OIL].
The 40% rise in oil prices since Jan 2008 is key to the direction change seen across all macro variables in India. The pressure could ease a bit from FY10 as new hydrocarbon discoveries come onstream. (more…)
Consumer Brand Launches – Emami + Nestle
Emami has launched Emami Fair And Handsome – a fairness cream for men in a new sachet format for Rs5. Fair And Handsome is a market leader in the men’s fairness cream market.
Nestle India has launched Polo Xtra Strong, an innovation on its existing brand, Polo, with added menthol crystals. This is available in singles format priced at 50 paise.
Avesta Good Earth Foods, a subsidiary of Avesthagen, launched Good Earth Whole Wheat Crackers, enriched with Teestar, a proprietary ingredient that reduces blood glucose levels. Priced at Rs32 for a 100g pack.
Punjab National Bank – Falling treasury income + interest margin
Punjab National Bank’s total business grew by 21% to Rs2860 bn on the back of 19% growth in deposits and 24% growth in advances, sequentially deposits grew by 9.1% and advances grew by 18%.
PNB’s reported NIM reduced by 41 basis points to 3.66% from 4.07% in 4QFY07 mainly due to deposits cost pressure, though the bank managed to hold the reduction in NIM by increasing credit-deposit ratio by 272 bps and increasing exposure to SME and retail sectors. Core operating performance was much better with other income and reduced operating expenses [33% (Y-o-Y) drop in employees’ expenses] led to 2.3 times jump in bottomline.
In percentage terms, GNPA and NNPA decreased to 2.7% and 0.6% from 3.4% and 0.8% respectively. EPS for FY08 was at Rs 65. The bank is expected to take significant hit on bottomline the current year due to NPAs, Agricultural Loans and Inflationary pressure.
Wire & Wireless India – Long way to go
Wire & Wireless India (WWIL) recorded revenues of Rs755 mn during Q4FY08, representing a top line growth of 7.4% QoQ and 13.8% YoY. The growth was primarily led by 30% QoQ increase in carriage revenue from Rs264 mn in Q3FY08 to Rs355 mn in Q4FY08.
Digital subscription revenue also grew significantly by 66.2% QoQ from Rs45 mn to Rs75 mn. Digital revenue growth was attributed to ARPU expansion which grew to Rs95 per month during quarter (~36% YoY growth).
The company’s OPM improved by 108 bps during the quarter, led by a sharp 490 bps improvement in cost of goods and services. OPM stood at -3.4% during Q4FY08, compared to -24.9% in Q4FY07. The company reported a net loss of Rs 75.4 crore. We personally think that the management of Wire & Wireless India is extremely weak with constant exodus of folks at the top management.