Srisai's Instinct Stock Calls for Dt: 03.11.2009

Srisai's Instinct Stock Calls from Dt: 03.11.2009

This(Srisai's Instinct Stock Calls) will be a New Initiative of this blog to Publish Blog Author's Own Investment/Trading Calls for Short-Medium Term perspective. But All these Calls are not given on Purely Technical perspective. Most of these Calls are given by Blog Author from His past Investment/Trading experiences. So Do not expect More depth in Calls. Author has tried his best to give some calls for the benefit of Investors/Traders from his experience and from some media/web/news based call. So author request all the investors/traders to take/try these Calls as RISK CALLS. And Keep Strict Stop Loss Own (or) Keep Resi,Supp levels As Stop Loss for their Trading(or) Trade/Invest @ your Own Financial Risk. All type of Comments are Welcome about this New Initiative. Dont Forget to Keep Stop Loss and Again Author Remembering you that he is giving calls only from his past trading experience...



Nifty Future cmp 4707

Nifty's 200 DMA comes nearly at 4633-4626 levels.... That level should be strong support for the near term.... But if breaches that level, then could expect further 2-3 downside from there.... Immediate uptrend only above 4792 levels... Then 4880 level will act as a Strong Resistnce Zone.... Keep Watch these levels and Trade according to that... Other Supports are 4688-4654-4633...


Sterlite: Cmp 771

Stock has support at 737 levels... Short term investors Keep 705 level as Stoploss and Go Long.... Accumulate upto 737 range and Keep SL at 705 level... That is strategy... Buy in Small Qty...


Jetair: Cmp 379


Stock has support at 335-340 levels... Buy at that level if falls below 350 and keep Stoploss at 315 levels and Go Long.. Resi @ 415-420 levels... Furhter Resi at 434-455 levels.... Upside only above 420 levels...



Results Review:

1) HinduStan Lever, Suzlon, RCOM, Bharti, Hindalco results well Below mkt estimates...
2)PNB,Sterlite results well above mkt estimates.
3) Unitech Profit down 50%....
3) SBI, ICICI Bank Results above mkt estimates.... But ICICI Bank NPA is a concern...
4) Midcap results somewhat Ok than Largecaps...
5) Relinfra, JindalStel&Power are inline...




By Srisai

Market Views from Various Sources

Intermediate trend reversal confirmed


Prices collapsed in settlement week with the Nifty dropping 5.7 per cent to close at 4,711.7 points. The Sensex was down 5.5 per cent, closing at 15,896 points. The Defty was down 6.8 per cent with the dollar bouncing from over-sold levels

The poor sentiment was mainly due to continuous and heavy selling by FIIs. Although domestic institutions bought, they couldn’t match the supply on offer. Volumes were pretty heavy in both cash and derivatives segments. Advances were heavily outnumbered by declines. The BSE 500 dropped 6.2 per cent while the Midcaps dropped 7.8 per cent.

Outlook: The market is testing a critical support at 4,700 and there are some signs that it is over-sold. If the support holds, a short-term uptrend till around 4,950 level is possible. If the 4,700 support breaks, the next support is at 4,600. The intermediate trend is clearly bearish and net losses through November look likely. Expect a rise in volatility.

Rationale: The intermediate trend is into week two of bearishness, following 13 weeks of bullishness. Normally intermediate trends last between 6-10 weeks so net losses are likely through November. Chart patterns indicate a downwards breakout from range-trading between 4,900-5,100, with an initial target of 4,750, which has been exceeded. Volatility has already risen on the breakout.

Counter-view: Momentum indicators suggest the market is oversold in the short-term.

So there could be a bounce – especially if the FIIs reverse their attitude. The long-term trend is still positive as far as we can tell. In such circumstances, it’s possible that the intermediate downtrend could end fairly quickly. As of now, the maximum upside appears to be around 5,050. However, if the intermediate downtrend ends, the first signal would be 5,050 being exceeded.

Bulls & bears: There were sell-offs across most sectors except for sugar, which has been on a sustained bull run. The worst-hit sectors included banking and realty while the IT sector showed comparatively greater defensive strength. Metals also saw big losses following weak trends in international commodity markets. FMCGs displayed their traditional defensive strength in crisis situations.

This sort of across-the-board movement suggests that any market recovery will also occur across the board. As and when the market bounces, the worst-hit sectors will also rebound the highest. Hence, an optimist will be going long on the high-volume bank and realty stocks. Pharma and IT trends will depend to some extent on dollar movements.

MICRO TECHNICALS

Bajaj Hindustan
Current Price: Rs 196.45
Target Price: Rs 215

---

The stock has corrected from recent highs and is consolidating on support. Keep a stop at Rs 192 and go long.

Book partial profits between Rs 210-215. There is a chance that the stock could rise till around the Rs 225 levels so it makes sense to retain around one-third of the original position above Rs 215.

TCS
Current Price: Rs 628
Target Price: Rs 600

---

The stock is developing an encouraging pattern of higher highs and lows. However, it is in correction mode right now and likely to ease down till it hits support at around Rs 595-605. Keep a stop at Rs 635 and go short. Start booking profits at below Rs 605.

Dr Reddy’s Labs
Current Price: Rs 1,019
Target Price: Rs 1,070

---

The stock has made an upwards breakout on reasonable volumes. It has a potential target of around Rs 1,070-1,100. Keep a stop at Rs 1,000 and go long. Increase the position above 1,040. Start booking profits above the Rs 1,070-mark.

Axis Bank
Current Price: Rs 907
Target Price: Rs 990

---

The stock has hit a fairly strong support. If it rebounds, there could be a clear run-up till around the Rs 990 mark. Keep a stop at Rs 900 and go long. Increase the position if the stock crosses the Rs 930-mark. Start booking profits above Rs 970.

Mahindra & Mahindra
Current Price: Rs 921.95
Target Price: Rs 900

---

The stock is still settling down and consolidating around support between Rs 900-930. It is likely to test the bottom of this range again. Keep a stop at Rs 935 and go short. Start covering the position at around Rs 905.

****************************************
Deep cuts in Smart Portfolios

Markets at a glance

Analysts' corner

Expect sharp rise in volatility

Improving outlook

Gathering speed

Domestic gains

Provisioning woes

******************************************
Top 10 shipping stocks

Check out mid-term picks of the day

Investors look for the big winners of next upturn



Src: Business-Standard, EconomicTimes,

A professor's multi-million-dollar bread biz

A professor's multi-million-dollar bread biz

Fifty-four-year-old M Mahadevan is today known not only in India, but overseas too, as 'Hot Breads Mahadevan'.

His journey from being a professor at the Madras University to an entrepreneur in charge of a multi-million-dollar business spanning various countries can only be described as amazingly inspiring.

But the man is still the same: simple hearted and hard working. Here is his interesting story.

Early days

I come from a simple town in Tamil Nadu called Udumalpet; it is 65 kilometres from Coimbatore. Though both my parents were doctors, I took my post graduate degree in Commerce.

My interest in the hotel industry began after reading Arthur Hailey's Hotel. I had just joined college then. In hindsight, I feel what attracted me to the hotel industry was people; I love meeting people.

My parents also met people, but only those who were in pain and misery, and I want to meet people who are happy. Those who come to a bakery or restaurant are always in a joyous mood.

I came to Chennai in 1979 as an Assistant Professor at Madras University. I taught Marketing to management and accounts students. That was during daytime.

The passion to be in the hotel industry was so intense that I started working for four hours at Hotel Ambassador Pallava at night to learn more about the industry. I was a trainee, a bell boy, a receptionist: everything. So, you can say I was a professor during day time and a bell boy in the evening.

My mother was aghast when she came to know about what I was doing. She asked, 'Are you mad? You are a teacher, and then you are going and cleaning tables? I can't understand this. I will not be able to find a girl to marry you!'

Image: M Mahadevan with the goodies prepared at his Hot Breads bakery.
Photographs: S Ramesh

Fore more about this article: Click Next

350)this.width=350;">

Prev Next

In those days, no girl from any good family in Chennai would marry a man who worked in hotels! In short, my mother didn't like it a bit. But I told her, 'One day, I will become the owner of a hotel and give employment to many people.' She was happy to hear that part.

First enterprise, a take-out with Rs 60,000

I met my partner while I was working in the hotel, and we started our first take out -- at the Tic-Tac unit in Chennai. The unit was selling north Indian food and I started a Chinese take-away there.

I opened my kitchen with Rs 60,000, and it opened at 5 p.m. and closed at 11.30 p.m. That was the time Chinese food was a craze among the people here.

One of the persons who came to take the food was building a commercial tower and asked me whether I was interested in taking up a place there.

That was how the restaurant Cascade opened. We served Chinese, Thai, Malay and Japanese cuisine.

Those who sold Chinese had red and green as the interiors, but I wanted something different. I got Parmeshwar Godrej from Mumbai through my neighbour, who was artist M F Hussain's son. And I told her I wanted all white and blue. I wanted my restaurant to look different and the interiors became a selling point. Many came to see the interiors.

From then on, business roared. That was in 1986.

Image: 'Hot Breads Mahadevan'.
Photographs: S Ramesh

Prev Next

350)this.width=350;">

Prev Next

From hotel to bakery

I used to go to Singapore to buy my ingredients like Chinese sauces for my hotel and that was when I saw these little bakeries. I decided to open a bakery in India and sell bread. Many told me, 'people look at bread as something that they take when they are ill. How are you going to sell bread?'

My partner said, 'You are crazy. The success of Cascade has got to your head!' So, whatever money I had (Rs.300,000) in Cascade, I took with me, and decided to start my bread unit on my own. I got Rs 800,000 as loan. I started Hot Breads with Rs 11 lakh (Rs 1.1 million) in 1989.

We had to import bread making machines in those days. It was the license regime then -- not like today. I gave the project plan and it took four months for the committee to take a decision though they met every month.

Once you got the license, it was mentioned in it what machine I was to import and at what cost. Not even a dollar more I was supposed to bring in to the country!

I was not looking at selling just bread alone but curry buns, pastries, pizzas, burgers, etc. Bread was only a trap for the customer to come inside.

We took a bun, filled it with curry and made it a curry bun. We filled chicken tikka inside a Croissant. I got the idea to make these things Indian after I saw what Japanese did to their bakery items. Our curry buns are a big hit even in Paris.

People used to crowd in our unit at Alsa Malls in Chennai.

From day one, we started making profits as the concept was unique and the product tasty. It was a perfect cocktail. We broke even in the first year itself and never looked back.

In the third month itself, people from Kochi and Bangalore came to me to start Hot Breads units there.

Soon, I came to be known as 'Hot Breads Mahadevan'!

Image: Some of the breads, pastries, etc on display at a Hot Breads outlet.
Photographs: S Ramesh

Prev Next

350)this.width=350;">

Prev Next

First overseas Hot Breads unit in Dubai

In 1994, a Tamil couple who had come to Chennai saw how Hot Breads attracted people in Chennai. They asked me, 'Would you like to come to Dubai?' I said, 'Yes!'

I had around 12 units in India by then. We went to Dubai, started a unit there and it was a huge success. But we had to close it down after a year as it became a no-parking zone. When we were about to wind up, I was a bit sad that my overseas venture did not take off.

We soon got a contract from a union co-operative society. From day one, it was a roaring success. It was a Godsend. Like they say, when one door closes, ten others open.

For 14 years, we were at the same place. Only last year, they replaced us but then now, we have so many other units in Dubai.

The strangest demand we got was for Arabic bread. A gentleman came to our shop and said, if you don't have Arabic bread when you are here, shut your shop'. The very next day, I hired a Lebanese guy and we started making Arabic bread. Kids might like sandwich bread, but elders still prefer Arabic bread. But what is catching up is the curry-flavoured bread all over.

Image: Hot Breads is a booming business.
Photographs: S Ramesh

Prev Next

350)this.width=350;">

Prev Next

Becoming a Non-Resident Indian

After I opened my first unit in Dubai, I decided to become an NRI. The rules in India were stringent then. If you are investing from India, you have to take permission. Even if you had to cough or sneeze, you had to call the Reserve Bank of India and ask, 'Can we sneeze?'

The stringent rules forced me to be a Non-Resident Indian. Anyway, I would be away for more than 180 days to build my units. The profits you make internationally are not taxed here. The profits I made were put back to start more units abroad. The rules are different now. But I am happy that I chose the NRI route.

The second stop was Paris

In the last 20 years, I have opened -- with help from others -- 130 bakeries in 16 countries: the United States (New York and San Francisco), Ghana, France (Paris), UAE (Dubai), Botswana, Kuwait, Muscat, Singapore, Malaysia, the United Kingdom (London), etc. Now we are going to Australia.

But the market in India is booming and we have 68 units here.

We started with Rs 60,000. Now, we make around Rs 100 crore (Rs 1 billion) in India and internationally around Rs 120 crore (Rs 1.2 billion).

Image: M Madhavan with a friend.
Photographs: S Ramesh

Prev Next

350)this.width=350;">

Prev More

Hand of God

I believe in the hand of God. You have to be at the right place at the right time, and God's hands have to be there to help you and guide you. Wherever I went -- Dubai, Botswana, San Francisco -- a force took me there.

My ideas worked because they came at the right time. Instead of 1989, if I had opened in 1980, I would have gone bust. Doing your homework is very important which is studying and understanding the market.

I have made many mistakes, but I try to learn from them. We keep learning.

My advice to budding entrepreneurs is, innovate and think different. Don't follow anyone's footsteps; leave your own footprints for others to follow. Try to be lean and mean. Don't take your customers for granted.

Unless you have passion, you will not be able to carry a smiling face. More than hard work, it is the passion that you need to succeed.

My 'boys'

I have 3,000 boys working for me in India. I started with 14 boys in Dubai, now we have more than 1,000 boys working abroad. I love my boys, but I am a hard taskmaster. I don't accept laziness. I don't like procrastination. I drive them crazy, I know. Some of my boys run to my mother and complain about me!

We started 'Winners' in Chennai to teach poor, bright boys to bake. When you teach them a skill, you give them a life.

My happiness is not in turning my Rs 60,000 into Rs 120 crore. I am happy because I give employment to 3,000 boys in India. India needs not one but 10,000 Mahadevans to give employment to thousands of people. What I have done, anybody can do. I am an ordinary guy from a small town, but I had big dreams and commitment.

Image: A worker displays baguettes (French stick), bread made with organic flour, at a bakery in Paris.
Photographs: Benoit Tessier/Reuters

Prev More

Src: Rediff.com

Six remarkable unknown PSUs

Six remarkable unknown PSUs

Six remarkable unknown PSUs

Comment Mail to friend

By Moinak Mitra, ET Bureau

Till recently, not many people had heard of Satluj Jal Vidyut Nigam. Then the government announced that the company would a candidate for divestment in the coming months and now everyone is suddenly interested in knowing more about Satluj Jal Vidyut Nigam.

With the government preparing for another round of divestment, a fresh new set of public sector undertakings (PSUs) are preparing to capture the limelight. They’re not the big ticket ‘navratnas’ like ONGC, SAIL and GAIL which the public has come to recognise. Instead, they are hitherto unknown companies and nobody is quite sure what they do. The companies picked by the Government for divestment are all set to become familiar names for investors in the months to come.

Meanwhile, Corporate Dossier decided to pre-empt matters by taking a close look at six little-known PSUs that have executed remarkable turnarounds in recent years.

EDCIL

Comment Mail to friend

CMD: Anju Banerjee

Under Banerjee’s leadership, EDCIL’s turnover has grown from just Rs 25 crore to over Rs 54 crore and its grading by the Department of Public Enterprises has moved up from ‘fair’ to ‘excellent’. In educational projects, typically, the gestation is long but Banerjee seems to be happy with the 10-16% margins her business bears.

Also, she has sketched out high-value areas for her company, quality certification and school accreditation, technical audit for institutional construction, IT education, educational fairs and online testing facilities. Categorised as a ‘Mini Ratna’ by the government, EDCIL provides placement to international students from over 30 countries and sends expert faculty to more than 15 countries.

Today, 65% of the work comes from the government and the remaining 35% from the private sector. Banerjee wants a 50:50 ratio. “I want to get more private and international clients. I’d like to add more professionals and specialists to add value to our client base,” she says.

Heavy Engineering Corporation

Comment Mail to friend

CEO: GK Pillai

People do move from the public to the private sector, but Pillai’s reverse swing from the Sanmar Group in Chennai to HEC at nearly one-tenth the annual remuneration was an eye-opener.

Pillai takes pride in the fact that for the first time in the company’s 50-year-history, it has booked a profit for three consecutive years. The turnover per employee has improved from Rs 4.41 lakh in 2004-05 to Rs 15.73 lakh today.

In 2007-08, sales spiked to Rs 413 crore from Rs 297 crore in the previous year. And in 2008-09, the sales have touched Rs 454 crore with a profit of Rs 18 crore against a targeted profit of only Rs 6 crore. In 1958, the company was created to serve the steel and coal sectors. But Pillai chose a strategic shift. “I want HEC to serve strategic sectors like defence, space and the nuclear.”

In other words, he realised it was time to de-commoditise the company, away from market fluctuations, toward the sweet spot of exclusivity. In line with the new thinking, HEC has developed a very special material for nuclear-grade steel and also supplied the heaviest (810 tonnes) launchpad for India’s space mission.

More @ Six remarkable unknown PSUs

***************************************

Other Stories:

10 technology tools you can't do without

RIL, Bharti pull Sensex to its biggest monthly fall this year

ICICI Q2 net up 2.6% beats forecast; Bharti Airtel Q2 net up 13%, lags forecast

ICICI Q2 net up 2.6%; beats forecast

MUMBAI: ICICI Bank, India's No.2 lender, posted a small but unexpected rise in quarterly profit, helped by trading gains and lower provisions, which offset a rise in bad debts.

ICICI said July-September net profit rose to 10.40 billion rupees ($221 million) from 10.14 billion rupees a year earlier. A Reuters poll of analysts had forecast net profit of 9.5 billion rupees.

ICICI has slowed lending as it tackles increasing bad loans in its mainstay retail market. Top lender State Bank of India is expected to say its July-September profit rose nearly 9 percent, helped by bond trading income, when it reports on Saturday, the poll found.

Shares of ICICI, valued at more than $21.3 billion, rose by a quarter in July-September, beating a 20 percent rise in the sector and an 18 percent gain on the benchmark index


****************************************
Bharti Airtel Q2 net up 13%, lags forecast

NEW DELHI: Bharti Airtel Ltd, India's top mobile operator, on Friday reported a 13 percent rise in quarterly profit that lagged analysts' estimates as an increasing number of low-paying users and price competition weighed.

New Delhi-based Bharti, in which Southeast Asia's top phone firm SingTel owns more than 30 percent, said net profit rose to 23.21 billion rupees ($495 million) under U.S. accounting rules in its fiscal second-quarter ended September from 20.46 billion reported a year earlier. Revenue rose 9 percent to 98.46 billion rupees from 90.20 billion.

A Reuters poll of 11 brokerages had forecast a net profit of 24.41 billion rupees on revenue of 103.55 billion for Bharti, which added 8.1 million mobile users in the quarter to take its customer base to 110.5 million.

India's mobile industry, the world's fastest-growing major market, is becoming increasingly competitive, with existing players cutting rates to attract subscribers before four new firms start operation this year.

Bharti shares have lost nearly a quarter in October, while second-ranked Reliance Communications is down by almost a third in the face of the price war. Bharti shares gained 4.4 percent in the September quarter, underperforming the broader market.



******************************************
GSK Pharma Q3 profit rises 7 pc to Rs 141 cr

Mundra Port Q2 profit jumps 55 pc to Rs 174 cr

Alok Ind Q2 FY'10 operating PAT up 26.18 pc at Rs 57.11 cr
30 Oct 2009, 1353 hrs IST

Integrated textile company Alok Industries on Friday said its operating profit after tax rose 26.18 per cent at Rs 57.11 crore in Q2 FY'10 against Rs 45.26 crore in the year-ago period.

Grasim Industries Q2 net profit at Rs 881.84 cr

Oil India Sep qtr net up 0.79 pc to Rs 722.56 cr

Sensex slips 5.5% this week, ends below 16K; telecom cracks

Src: EconomicTimes.INdiatimes.com, Moneycontrol.com

Srisai's Instinct Stock Calls (Dt: 30.10.2009)

Srisai's Instinct Stock Calls from Dt: 29.10.2009

This(Srisai's Instinct Stock Calls) will be a New Initiative of this blog to Publish Blog Author's Own Investment/Trading Calls for Short-Medium Term perspective. But All these Calls are not given on Purely Technical perspective. Most of these Calls are given by Blog Author from His past Investment/Trading experiences. So Do not expect More depth in Calls. Author has tried his best to give some calls for the benefit of Investors/Traders from his experience and from some media/web/news based call. So author request all the investors/traders to take/try these Calls as RISK CALLS. And Keep Strict Stop Loss Own (or) Keep Resi,Supp levels As Stop Loss for their Trading(or) Trade/Invest @ your Own Financial Risk. All type of Comments are Welcome about this New Initiative. Dont Forget to Keep Stop Loss and Again Author Remembering you that he is giving calls only from his past trading experience...


Nifty Future cmp 4774

Nifty Future will Face strong resi @ 4870-4880 levels... So Book some LONG profits at this level... Other Resi @ 4905-4930 levels... Supp @ 4757-4732-4687



Reliance Industries cmp 1999

Results Disappointed mkt estimates... Profit Rs 3852 cr Vs 4122 cr (MKt esti: 3850-4020 cr).... GRM Fell @ $6.. Stock may open 2-3 down in next few sessions..



TOday Results & Listing

ICICI, Bharti, SAIL etc...
INdiabulls Power Listing today. Price:Rs 45.


Tata Chemicals: cmp 252

Good set of Results... Buy For investments..



DLF cmp 375

Bad set of Results.... Profit down 77% to Rs 440 cr.. Supports at 330-340 levels... Buy at this level....



Bye

Srisai...

RIL records 6% dip in profit

RIL records 6% dip in profit

Despite doubling the refinery capacity and commissioning of natural gas production, India’s largest private sector company Reliance Industries posted a 6% dip in its net profit to Rs 3,852 crore in the September 2009 quarter.

However, the new businesses took the company’s gross profit and pre-tax profit to their highest-ever levels, only to be hampered by a rise in depreciation due to new projects going live and MAT-induced tax.

Although its refinery throughput nearly doubled over the year-ago period, the profits from refining halved, denting the company’s bottomline, which could not be repaired by higher margins in the petrochemical business and doubling of oil & gas profits.

Global oversupply of refined products on the one hand and a crash in the differential between best and worst quality crude oils resulted in pressure on RIL’s refining margins. RIL’s refineries are better-equipped to process the worst quality crude oil, which have traditionally been available at a significant discount to the best quality ones, thereby earning a better margin compared to peers. RIL’s gross refining margins (GRM) dipped to $6 per barrel, the lowest in at least five years.

The company’s petrochemicals

business, however, did much better against the market expectations, showing margin growth and recording its highest-ever quarterly profit in history at Rs 2,195 crore. Strong domestic demand and an11% depreciation in rupee value against the year-ago period helped the company improve its realisations.

RIL’s sales from petrochemicals business fell 14% despite a 8% y-o-y growth in volumes due to overall lower prices.
The oil & gas segment of the company, which is fast gaining prominence with growing gas volumes from KG basin fields, reported a three-fold rise in sales. Still, an erosion in margin resulted in restricting the profit growth at 90% y-o-y at Rs 1,226 crore.

Going forward, the ramping up of KG basin gas will keep propping up the company’s profitability while the refining business continues to suffer. The petrochemical business, too, is likely to witness increasing margin pressure over the next 2-3 quarters. However, the company would be able to reap full benefits of its expanded capacities once these cyclical businesses see an upturn.


**************************************

Reliance Ind net down 6.4%

Reliance Ind net down 6.4%

Gross refining margin more than halves to $6.3 a barrel.

Our Bureau

Mumbai, Oct. 29 Reliance Industries has posted a profit of Rs 3,852 crore for the second quarter ended September 30, a fall of 6.4 per cent from Rs 4,116 crore in the corresponding period last year.

For the half-year period, profits were down 8.5 per cent to Rs 7,518 crore (Rs 8,220 crore).

Gross refining margin fell to $6.3 a barrel from $14.4. In addition, the depreciation doubled to Rs 2,400 crore during the quarter while the tax outgo rose to Rs 800 crore (Rs 344 crore).

Total revenue increased by 6.1 per cent to Rs 48,843 crore (Rs 46,014 crore). However, for the first half, it was down 8.7 per cent to Rs 81,284 crore (Rs 88,998 crore). During the period, exports were down 26 per cent to Rs 43,035 crore.

“The timely completion of the new SEZ refinery and the deepwater, oil and gas KG D6 block and their safe and stable ramp-up are noteworthy accomplishments. These projects have contributed meaningfully in RIL achieving a record level of profits despite the challenging business and economic environment,” Mr Mukesh Ambani, Chairman, said.

Operating profit before other income and depreciation was up 7.9 per cent to Rs 13,601 crore (Rs 12,608 crore). Other income was higher at Rs 1,337 crore (Rs 377 crore) due to higher interest income on account of higher cash and cash equivalents totalling Rs 19,421 crore.

Net capital expenditure for the quarter was Rs 7,831 crore. According to RIL, total gas production from the Krishna-Godavari D6 basin is now 40 million metric standard cubic metres (mmscm) a day.

Production has kicked off in 16 of the 18 wells at KG D6 and the total production during the quarter was 222,104 tonnes of crude oil and 4,813 mmscm of natural gas.

KG D6 has constantly been in the news with the latest relating to RIL’s letter to the Centre seeking new buyers for its gas fearing that the reserves could be damaged otherwise. Since then, a Government-appointed panel has allocated 50 mmscm of additional gas to power plants, refineries etc.

Experts say that the transport sector could also benefit from the KG D6 gas though this would call for creation of a national gas grid which could effectively supplement conventional fuels such as petrol and diesel.

RIL’s global exploration and production business comprises 14 blocks spread across Peru, Yemen, Oman, Northern Iraq, Colombia, East Timor and Australia.

At home, the Jamnagar refinery processed 27.63 million tonnes of crude oil, up from 16.34 million tonnes last year. The utilisation rate was nearly 90 per cent, which was higher than other refineries in North America (82.1 per cent), Europe (77.1 per cent) and Asia (79.3 per cent). Exports of refined products totalled $7.5 billion.

In the petrochemicals segment, domestic demand for most products remained strong with polymers demand higher by 25 per cent, polyester by 15 per cent, and fibre intermediates by seven per cent.

The company says there was a substantial improvement in the overall petrochemical margins as the industry was operating on a low level of inventory.

The RIL scrip closed at Rs 2003.85 on Thursday, down 1.56 per cent.

RIL Q2 net down, Tulsian sees stock correcting by Rs 70

***************************************

RIL net drops 6.4% on refining margin pinch

Reliance Industries Ltd (RIL), India’s largest private sector company, reported a fourth straight decline in quarterly profits on shrinking refining margins and reduced exports due to a global economic downturn.

The company today posted a 6.4 per cent fall in net profit at Rs 3,852 crore for the second quarter (July-September) of this year compared to Rs 4,116 crore in the year-ago period.

Refining margins more than halved to $6 a barrel from $13.3 a barrel a year earlier. The results met the Street’s expectations because gas production from its Krishna-Godavari (KG) fields helped offset lower refining margins.

MORE PAIN (RIL’s Q4 performance in Rs crore)
	Q2 ‘09	Q2 ‘10	% Chg
Net turnover	44,688	46,848	4.8
Net profit	4,116	3,852	-6.4
Refining margin ($)	13.3/bbl	6/bbl	-54.9

Kamlesh Kotak, Head, Asian Market Securities, said RIL’s performance was expected to be subdued anyway. “We see the refining margins low till December. The market is keenly watching the gas dispute (between the two Ambani brothers), as nothing else seems to be greatly positive,” he said.

RIL said the decline in profits was also due to higher depreciation and tax provisioning. Depreciation during the quarter went up 91.4 per cent to Rs 2,432 crore against Rs 1,270 crore in the corresponding previous quarter. The

provision for tax has more than doubled to Rs 800 crore against Rs 344 crore

in the corresponding previous quarter, owing to the higher minimum alternate tax (MAT) rate announced in the last Budget.

RIL Chairman Mukesh Ambani said the timely completion of the new SEZ refinery and the deepwater oil and gas KG-D6 block and their safe and stable ramp-up are noteworthy accomplishments for the company. “These projects have contributed meaningfully in RIL achieving a record level of profits, despite the challenging business and economic environment,” he said.

During the quarter under review, revenue from the oil and gas segment, which includes exploration, development and production, more than tripled to Rs 2,937 crore against Rs 935 crore during the corresponding previous quarter.

Total income rose around 6 per cent to Rs 47,476 crore during the quarter from Rs 44,839 crore a year ago. While the company’s revenue from refining business grew nearly 9 per cent to Rs 39,564 crore, income from the petrochemical business stood at Rs 13,340 crore, down by 14.20 per cent.

The company, which began production of natural gas from its KG D6 facility this April, has ramped up the production to over 40 mscmd. During the period, the total production from KG D6 was 222,104 tonnes of crude oil and 4,813 million standard cubic meter per day of natural gas.

However, the company has said it was producing only about 60 percent of its 60 million standard cubic metres a day (mmscmd) capacity.

That meant it had been missing out on $100 million in monthly revenue since May, and it would delay hitting peak gas output of 80 mmscmd by at least a quarter until April-July 2010. Natural gas from KG D6 block was supplied to 15 fertilisers, 19 power, three steel, one LPG and two city gas distribution companies. For the half-year ended September 30 2009, the company achieved a turnover of Rs 81,284 crore reflecting a decrease of 8.7 per cent over the corresponding period of the previous year.

During the period, exports were lower by 26 per cent at Rs 43,035 crore. For its international operations, RIL has farmed-out 30 per cent of its participating interest in Oman-Block 18 and 25 per cent in Oman-Block 41 to Oman Oil Company Exploration and Production.

The basic earning per share for the half year was Rs 45.8 against Rs. 54.0 for the corresponding period of the previous year.

Ahead of the results, RIL fell 1.56 per cent at Rs 2003.85 on the Bombay Stock Exchange today.

******************************************
Other Results:

LIC Housing Finance Q2 net up 25.85 pc to Rs 171.24 cr
29 Oct 2009, 1533 hrs IST

LIC Housing Finance on Thursday said its net profit rose by 25.85 per cent to Rs 171.24 crore for the second quarter ended September 30, against the same period last fiscal.

REC Q2 net up 60.14 per cent to Rs 494.36 crore
29 Oct 2009, 1515 hrs IST

State-run, Rural Electrification Corporation today said its net profit rose by 60.14 per cent to Rs 494.36 crore for the second quarter ended September 30, 2009, over the same period last year.

Bank of India Q2 profit halves to Rs 323 cr; shares dip 9 pc
29 Oct 2009, 1448 hrs IST

Public sector lender Bank of India today reported a decline of 57 per cent in net profit to Rs 323.34 crore for the second quarter of current fiscal, over the same period a year earlier.

HDIL Q2 Net dips 44 pc to Rs 148.59 cr
29 Oct 2009, 1436 hrs IST

Housing Development & Infrastructure Ltd today reported a 44 per cent decline in net profit at Rs 148.59 crore during the second quarter ended September 30, 2009.

CESC Q2 net up 1.61 pc to Rs 126 cr
29 Oct 2009, 1436 hrs IST

Power utility CESC today said its net profit rose by 1.61 per cent to Rs 126 crore for the second quarter ended September 30, 2009, over the same period last year.

Corporation Bank Q2 net up 52.30 pc to Rs 291.67 cr
29 Oct 2009, 1359 hrs IST

State-owned Corporation Bank today said its net profit rose by 52.30 per cent to Rs 291.67 crore for the quarter ended September 30, 2009, over the same period last year.

IOB Q2 net dips 51 pc to Rs 176 cr
29 Oct 2009, 1351 hrs IST

Indian Overseas Bank on Thursady reported 51 per cent decline in its net profit at Rs 176.04 crore for the second quarter ended September 30, 2009.

Punjab National Bank July-Sep net up 31 pc
29 Oct 2009, 1312 hrs IST

State-run Punjab National Bank said on Thursday that its July-September profit was at 9.27 billion rupees, up from 7.07 billion rupees.

Patel Engineering Sep qtr net up 26.76 pc to Rs 40.69 cr
29 Oct 2009, 1055 hrs IST

Construction company Patel Engineering today said its net profit rose by 26.76 per cent to Rs 40.69 crore for the quarter ended September 30, 2009, over the same period last year.

Anant Raj Industries Sep qtr net dips 44 pc to Rs 71.27 cr
29 Oct 2009, 1053 hrs IST

Real estate firm Anant Raj Industries today said its consolidated net profit declined by 44 per cent to Rs 71.27 crore for the quarter ended September 30, 2009, over the same period last year.

HCL Infosystems Q2 net declines 11 pc to Rs 59 cr
29 Oct 2009, 1722 hrs IST

IT firm HCL Infosystems today reported a consolidated net profit of Rs 58.97 crore for the second quarter ended September 2009, a 10.77 per cent drop over the same period a year ago.

BPCL Q2 net loss at Rs 158.77 cr
29 Oct 2009, 1720 hrs IST

Bharat Petroleum Corp Ltd today reported a net loss of Rs 158.77 crore for the second quarter of the current fiscal, largely because the government did not issue it bonds to compensate for losses on cooking fuel sales.

Cairn India July-Sept quarter net jumps 60 pc
29 Oct 2009, 1719 hrs IST

Cairn India, a unit of UK-based explorer Cairn Energy, reported a 60 percent rise in quarterly profit, after two straight quarters of decline.

ABB Q3 net profit up 12 pct to over $1 bn
29 Oct 2009, 1642 hrs IST

Swiss-based ABB Group saw third-quarter net profit rise 12 percent to over $1 billion, helped by a $380 million boost from reversing set-asides for taxes, antitrust fines and restructuring charges.

ONGC Q2 net profit rises 5.8 pc
29 Oct 2009, 1636 hrs IST

Indian state-run explorer Oil & Natural Gas Corp reported a 5.8 per cent rise in quarterly net profit, its first rise in five quarters, as its subsidy-sharing burden eased, but lagged market estimates.

Sterlite Industries Q2 Net dips 28 pc to Rs 1,240.33 cr
29 Oct 2009, 1622 hrs IST

Sterlite Industries, the flagship company of Vedanta Group, today reported a 27.9 per cent decline in consolidated net profit at Rs 1,240.33 crore for the second quarter ended September 30, 2009.

CESC posts Rs 126 crore net profit in quarter two
29 Oct 2009, 1621 hrs IST

Energy major CESC posted a marginal increase in net profit at Rs 126 crore for the quarter ended Sep 30 against Rs.124 crore in the corresponding quarter a year ago, a top company official said here Thursday.

M&M Q2 net profit at Rs 843.6 crore
29 Oct 2009, 1536 hrs IST

Auto maker Mahindra & Mahindra today reported a net profit of Rs 843.6 crore for the second quarter ended September 30, 2009, driven by good sales in both automotive and farm equipment sectors.

Tata Chemicals Q2 net profit at Rs 222.83 crore
29 Oct 2009, 1535 hrs IST

Tata group firm Tata Chemicals today reported a consolidated net profit of Rs 222.83 crore for the second quarter ended September 30, while it had a net profit of Rs 277.70 crore in the same period last fiscal.

Glenmark Pharma Q2 net dips 31 pc to Rs 80.88 crore
29 Oct 2009, 1534 hrs IST

Drug maker Glenmark Pharmaceuticals today reported 31 per cent drop in its consolidated net profit at Rs 80.88 crore for the second quarter ended September 2009.

M&M grow on account of new products
30 Oct 2009, 0115 hrs IST, Krishna Kant

M & M grows but excise duty cut played only a small role in the company’s sterling performance in the September 2009 quarter.

Spice Mobiles Q2 up at Rs 16.4 cr
29 Oct 2009, 2210 hrs IST

Spice Mobiles, the handset unit of BK Modi-led Spice group, on Thursday reported a net profit of Rs 16.4 crore for the quarter ended September 30, 2009.

DLF Q2 net down by 77 pc; LOR to exit from DLF-LOR JV
29 Oct 2009, 2150 hrs IST

Realty giant DLF's consolidated net profit fell by 77.28 per cent to Rs 439.74 crore in the second quarter of this fiscal due to lower property demand.

Procter & Gamble's Q1 net up 4.71 pc to Rs 51.48 cr
29 Oct 2009, 2148 hrs IST

Healthcare products maker Procter & Gamble Hygiene & Health Care Ltd on Thursday announced a profit after tax of Rs 51.48 crore for the first quarter ended September 30, 2009, up 4.71 per cent over the corresponding period a year ago.

Dharani Sugars net profit surges 10 times to Rs 32 cr in Q2
29 Oct 2009, 1931 hrs IST

Dharani Sugars and Chemicals ( DSCL), flagship of Chennai-based PGP group, has reported a record net profit of Rs 32.77 crore in the second quarter ending September 30, 2009, up by 10 times over Rs 3.15 crore in the same period last year.

Sundram Fasteners net doubles in Q2
29 Oct 2009, 1920 hrs IST

Net profit of Sundram Fasteners doubled to Rs 18.87 crore in the second quarter ending September 30, 2009 against Rs 9.17 crore in the same period last year even as net sales including exports dropped to Rs 330.95 crore ( Rs 388 crore).

Voltas' Q2 FY 10 net up 50 per cent at Rs 92-cr
29 Oct 2009, 1918 hrs IST

Voltas Limited, the Tata Group's global air-conditioning and engineering services provider, has posted a net profit of Rs 92-crore in the second quarter ended September 30, up 50 per cent as against the same period last fiscal.

Apollo Hospitals posts 34 cr net in Q2
29 Oct 2009, 1847 hrs IST

Apollo Hospitals Enterprise has reported a 13% rise in net profit of Rs 34.06 crore in the second quarter ending September 30, 2009 against Rs 30.13 crore in the same period last year.

Reliance Industries Q2 net down in line with forecasts
29 Oct 2009, 1747 hrs IST

RIL reported a net profit of Rs 3850 crore for the quarter ended Sept 30, down from Rs 4120 crore a year earlier.

ONGC Q2 profit rises as subsidy costs fall
29 Oct 2009, 1733 hrs IST

State-run explorer Oil & Natural Gas Corp posted a 6 per cent rise in quarterly net profit, its first gain in five quarters as lower oil prices eased the burden of having to subsidise state-run fuel retailers.

CESC posts Rs126-cr net profit
30 Oct 2009, 0249 hrs IST

CESC posted a marginal increase in net profit at Rs126 crore for the quarter ended September 30.

Emami net zooms 113% to Rs 29 cr
30 Oct 2009, 0247 hrs IST

An inorganic growth of 151 % helped Emami clock a 112.7% rise in net profit.

Voltas net rises 50% to Rs 92 cr
30 Oct 2009, 0244 hrs IST

Voltas has reported a 50.1% increase in its consolidated net profit even as revenues from engineering products & services segment remain under pressure.

Patel Engg net up 27%
30 Oct 2009, 0243 hrs IST

The construction company, specialising in hydro power generation and irrigation segment, also announced a 25.8% increase in half yearly consolidated net profit to Rs 77.03 crore.

JM Financial posts Rs 57-crore Q2 profit
30 Oct 2009, 0242 hrs IST

JM Financial has posted a consolidated net profit of Rs 56.9 crore for the quarter ended September 30 against Rs 20.8 crore in the year ago-period.

Apollo Hospitals profit rises 13% to Rs 34 cr
30 Oct 2009, 0241 hrs IST

Apollo Hospitals Enterprise has reported a 13% rise in net profit at Rs 34.1 crore in the second quarter ended September 30, against Rs 30.1 crore in the same period last year.

Voltas' declining stock trend halts; Electro-mech units spur
30 Oct 2009, 0139 hrs IST, Devangi Joshi

Voltas stock performance seems in line with the company’s financial performance in the past three quarters.

RIL records 6% dip in profit
30 Oct 2009, 0134 hrs IST, Ramkrishna Kashelkar

Despite doubling the refinery capacity and commissioning of natural gas production, Reliance Industries posted a 6% dip in its net profit.

ONGC reports marginal growth; price revision overdue
30 Oct 2009, 0128 hrs IST, Ramkrishna Kashelkar

ONGC reported a marginal net profit growth of 6%;price revision could boost profiit.

Zinc continues as best for Sterlite
30 Oct 2009, 0120 hrs IST, Santanu Mishra

Zinc business continues to be the best-performing business segment for Sterlite Industries, quarter after quarter.

Tata Teleservices suffers net loss of Rs 2,505 cr in FY09
30 Oct 2009, 0353 hrs IST, Joji Thomas Philip & Ranjit Shinde

Tata Teleservices suffers net loss of Rs 2,505 cr even as innovative billing scheme helps co attract record subscribers.

Shoppers Stop back in the black, net at Rs 12 cr
30 Oct 2009, 0327 hrs IST

Shoppers Stop shares closed at Rs 287 on BSE on Thursday, up 4.65 % from its previous day’s close.

Bajaj Electricals posts Rs 29 crore profit
30 Oct 2009, 0326 hrs IST

Bajaj Electricals on Thursday announced a 139% quarterly growth on higher sales of consumer durables amidst economic slowdown.

IOB net declines to Rs 176 crore
30 Oct 2009, 0325 hrs IST

The total business grew from Rs 1,60,514 crore to Rs 1,87,853 crore, posting a 17.03% year-on-year growth.

Corporation Bank net rises 52% to Rs 291 cr
30 Oct 2009, 0324 hrs IST

Rise in treasury gains and net interest income have helped Corporation Bank post a net profit of Rs 291 crore for the quarter ended September 2009 - an increase of 52% over the corresponding quarter last year.

Heidelberg Q2 net at Rs 27 crore
30 Oct 2009, 0323 hrs IST

HeidelbergCement India reported a net profit of Rs 27.1 crore for the quarter ended September 30, 2009, while it had a net profit of Rs 10.1 crore in the same period previous fiscal.

BPCL reports net loss at Rs 159 cr
30 Oct 2009, 0322 hrs IST

Losses in the July-September quarter narrowed to Rs 158.8 crore from Rs 2,625.3 crore a year ago, the company said in a statement.

PNB Q2 net up 31% to Rs 927 cr
30 Oct 2009, 0321 hrs IST

The growth in profit is fuelled by higher interest and treasury income.

Britannia profit up 11% at Rs 59 cr
30 Oct 2009, 0318 hrs IST

The quarterly net sales grew to Rs 858.5 crore in the July-September quarter, a marginal increase of 2.38%.

DLF profit takes a 77% knock on weak realty demand
30 Oct 2009, 0317 hrs IST

DLF’s profit of Rs 440 crore was slightly lower than analysts’ expectations. An ET poll of 15 analysts saw the net profit at Rs 492 crore.

Src: Economictimes, Businessline, BusinessStandard, Moneycontrol

Morning Views

Top 5 picks | Mid-term picks of the day


*****************************************
Heard on the Street

Heard on the Street 29 Oct 2009, 0353 hrs IST, ET Bureau

Print EMail Discuss Share Save Comment Text:

Former Citi Tech MD joins JPMorgan’s captive unit Punit Sood former MD of Citi Technology, Citigroup’s captive BPO, has made yet another move. He has joined JP Morgan’s captive unit in Mumbai as managing director and head of technology for JP Morgan Services. Before joining JPMorgan, Mr Sood worked with Wipro after the company’s acquisition of the Citi captive in December last year. He was in-charge of the Citi account, which is one of the largest customers for India’s third-largest IT company. Industry sources said that Mr Sood was keen to work with an international bank of repute like he did when he was with Citi. Incidentally, JPMorgan also figures among the top clients of Wipro. Jet Airways soars 9% despite poor Q2 nos Despite posting poor numbers for the September quarter, shares of Jet Airways were in demand on Wednesday. The stock was the best performer in the A group, rising 9% to close at Rs 398, supported by heavy volumes. In the last one month, the stock has gained around 22%. Players tracking the counter say that earnings for the current quarter are expected to be good because of the vacation season. Also, most of the negatives are already reflecting in the current price, they say. Buzz is that one of the domestic mutual funds, which already has a stake in the company, has been adding to its position over the past few sessions. In addition, a South-based mutual fund too has begun accumulating the stock. Jet has has reported a net loss of Rs 407 crore for the quarter ended September, compared with a net loss of Rs 385 crore during the same period last year. The company incurred higher fuel costs in the September quarter as fuel prices rose 17%, impacting it to the tune of Rs 108 crore. The five-day pilots’ strike wiped off Rs 80 crore. The company is awaiting approval the FIPB to raise up to $400 million through an equity offering to domestic and foreign investors. MFs quake at the thought of graveyard shifts Fund managers appear to be the most distraught over Sebi’s proposal to extend trading hours. While it may be possible for brokerage firms to have two sets of dealers and sales traders working in shifts, it is unlikely that fund houses can afford to keep two sets of fund managers. “If extended trading hours become a reality, I may have to keep two sets of drivers; one to drive me to work, and the other to drive me back at the end of the day,” said one fund manager. Contributed by Jessica Mehroin Irani, Apurv Gupta & Shailesh Menon

******************************************
Deadpresident Blog updates:

Idea Cellular Ltd

Marico India

Jeremy Grantham Newsletter - Q3 2009

Engineers India

Punj LLoyd India

Zensar Technologies

Property Sector

NIIT Ltd

Astec Lifesciences IPO Analysis

Pidilite Industries, Hero Honda, ITC, NTPC

GSPL Limited

More at : http://www.deadpresident.blogspot.com/


Src: ET, Deadpresident blog

Srisai's Instinct Stock Calls(29.10.2009)

Srisai's Instinct Stock Calls from Dt: 29.10.2009

This(Srisai's Instinct Stock Calls) will be a New Initiative of this blog to Publish Blog Author's Own Investment/Trading Calls for Short-Medium Term perspective. But All these Calls are not given on Purely Technical perspective. Most of these Calls are given by Blog Author from His past Investment/Trading experiences. So Do not expect More depth in Calls. Author has tried his best to give some calls for the benefit of Investors/Traders from his experience and from some media/web/news based call. So author request all the investors/traders to take/try these Calls as RISK CALLS. And Keep Strict Stop Loss Own (or) Keep Resi,Supp levels As Stop Loss for their Trading(or) Trade/Invest @ your Own Financial Risk. All type of Comments are Welcome about this New Initiative. Dont Forget to Keep Stop Loss and Again Author Remembering you that he is giving calls only from his past trading experience...


Nifty Future

NFut hovers around 4830 levels..... Upside resi at 4865-4880 for further upside...
Downside Supports at 4790-4765 levels...


FSL(firstsource)

Stock at 30 levels.... Strong support at 27 range.... So buy this stock at this level and hold it medium term upside...


ITC : cmp 261

Year high nearly... So If it breaks 264-266 levels then it may move to 280-300 levels in Medium term. Best Defensive Stock to be in Every Portfolio.... Buy this stock at Every dips..... Supports at 246-237 levels...




MIC Electronics cmp 39.9

Purely Buy For investment.... But in Small quantities....



Cipla cmp 300

Every time CIPLA got support at 280-282 levels.... If not breaks then it could go 312-330 levels in short term... Ultimate Tgt is 360.... Other supports are at 272-240 levels...


LIC Hosuing: cmp 790

Stock has supports at 780-765-741 levels... Buy this stock at decline.... Short term investors Buy this Stock with 721 levels as strict Stoploss.... Resi @ 810-840 levels..



Keep Given Strict StopLoss Or Keep Own StopLoss in All trades..


Bye


Srisai....