Re rating trigger in RIL....

Reliance Industries Ltd reported net profit of Rs 8079 crs on equity of Rs 1454 crs post IPCL merger. This includes Rs 4733 crs extra ordinary income. Yet the nos are better than expected. However, the catch of RIL is not in nos (it is always underperformed stocks in comparison with global peers) ; the catch is in its value unlocking.

Reliance also announced that “Reliance Digital Retail Ltd, Reliance Brands Pvt Ltd, Reliance Wellness Ltd, Reliance Footprint Ltd, Reliance Integrated Agri Solutions Pvt Ltd, Reliance Trends Ltd, Reliance Lifestyle Holdings Pvt Ltd, Reliance Universal Ventures Pvt Ltd, Reliance Autozone Pvt Ltd, Strategic Manpower Solutions Pvt Ltd, Reliance Gems and Jewels Ltd, Delight Proteins Pvt Ltd, Reliance F&B Services Pvt Ltd, Reliance Agri Products Distribution Pvt Ltd, Reliance Leisures Pvt Ltd, Reliance Retail Securities and Broking Company Pvt Ltd, Reliance Home Store Pvt Ltd, Reliance Trade Services Centre Pvt Ltd, Reliance Food Processing Solutions Pvt Ltd, Reliance Supply Chain Solutions Pvt Ltd, Reliance Digital Media Pvt Ltd, Reliance Loyalty & Analytics Pvt Ltd” ie 22 companies have become subsidiaries of the Company.

This has potential value unlocking entities of RIL gr of companies. If RIL gr decides to unlock value in any of these entities which is basically part of retail chain then RIL gr’s market cap may rise substantially again. This is a pointer to the fact the some value unlocking may happen in coming months.

We suggest investors to remain invested in RIL stock and our target of 3350 in intact. The correction in the stock was the immediate reaction of winding up of long positions traders had taken on various buy calls in last 2 weeks. Not only our target is intact but also the story is intact and those who wish to increase commitments may take call on RIL again with the target of 3350.

Multi Baggers

	ScripCode	Scrip	Type	Equity Price	Approx Holding Period	Target Price (in Rs.)	Remarks
		BEML	R	1700.00	12 Month	7100.00
	500186	Hindustan Oil	R	150.00	12 Month	456.00
	500191	HMT	R	132.00	12 Month	500.00
		Bombay Dyeing	R	900.00	12 Month	2700.00
	522285	Jeyswal Neco	R	66.00	12 Month	467.00
	500305	Ispat Ind	V P	69.00	1 Month	100.00
	509684	India Foils	R	27.00	12 Month	150.00
	523586	Indian Toners	H R H R	39.00	12 Month	145.00
	532275	Landmarc Leisure	R	6.19	12 Month	40.00
	530461	Saboo Sodium	H R H R	39.00	12 Month	150.00
	507944	Bajaj Steel	V P	244.00	12 Month	700.00
	523523	Rainbow Paper	R	143.00	12 Month	450.00
	502455	Sirpur Paper	R	130.00	12 Month	750.00
	501295	IITL	V P	134.00	12 Month	550.00
	531541	Avon Organics	V P	52.00	12 Month	250.00
	523610	ITI	V P	74.00	1 Month	200.00
	519560	Neha International	V P	66.00	1 Month	175.00
	532818	EVINIX	S F	218.00	12 Month	750.00
1 2 3

* V P : Value Pick | S F : Safe Heavens | H R H R : High Risk High Returns | R: House Research

SS Duncan

Today India manufacture 1 mn cars and we are proud. Our auto analysts believe that India will produce at least 5 mn cars in next 5 years a whopping jump of 500%. What this signifies is that India is set to become the largest auto maker in the WORLD.

Auto companies will definitely make a killing in next 3 years. Tata Motor will cross Rs 2000 whereas Maruti will become Rs 3000 and we have no doubt about the same. What is more interesting to note is that where from they will source component....?

It is like Steel cos dyeing for iron ore and oxygen. Therefore the bigger call is in auto spares.

Precisely this is the reason major auto spare manufactures are entering India in a big way, setting up new plants or expanding their existing capacities.

S S Duncan has now geared to catch the momentum as co has shifted its MULUND plant to Ranjangaon Pune and done VSR for Mumbai employees. This is an indication of its realty deal happening soon.

If this is happening then co would get close to Rs 275 crs ie Rs 500 per share. After merger of its Brazil unit co will report Rs 250 crs top line. Equity will remain at Rs 3.6 crs. Gates will also introduce more and more products.

It is a sure multi bagger MNC investment from the investment perspective.

Peninsula Update

Peninsula Land is going the way Patel Engg has traveled in last 30 months. We had picked up Patel Engg at Rs 165 a Rs 10 paid up share even before the placement had happened to FII. Since then Patel has become a real multi bagger story.

Peninsula is at the same stage. Co has already sold Rs1000 crs FSI to ALOK in DAWN mills. It has decided to sell 15% stake to LEHMAN Brothers. And sources claim that co selling another part and parcel of FSI to a leading corporate for Rs 1200 crs.

All this will make Peninsula Balance Sheet very healthy and we think from hereon this stock will never look back and will rise to Rs 1000 in next 30 months simply because of the huge cash flows which is coming in the company.

We suggest long term investors to catch this young infra baby where action is set to start.

SBI Updates

State Bank of India (SBI) has informed that the Central Board of the Bank at its meeting held on January 14, 2008, has decided as under:

1. To increase the Issued Capital of Bank from Rs 526.30 crore to Rs 650.00 crore, in terms of Sec. 5 (2) of the SBI Act;

2. To raise an aggregate amount of Rs 16,736.31 crore (including premium) by way of Rights Issue offer to Government of India and to other eligible existing shareholders including GDR holders;

3. To issue shares to employees of the Bank under Employees Stock Purchase Scheme;

4. Ratio for Rights Issue: one share for every five shares held by the eligible shareholders as on the Record Date;

5. Price for Rights Issue: Rs 1590 per share (i.e. face value of Rs 10 each and a premium of Rs 1580 per share).

(Since the rights price is at Rs.1590 and current price is Rs.2500 its mini bonus...price will shoot up)

My observation on IDBI

IDBI made very bold announcement by intention to expand the branches across the globe. Its insurance valuation is catching momentum. Its recovery of bad assets is on course.

All well, what is technical suggest….

When we started we IDBI at Rs 60 to 70 levels it was trading in 10 to 15 crs F & O volume. Slowly the volume have dwindled to as low as 1 cr shares and yet the stock is holding very close to its all time high. This signifies that IDBI counter has become dry and can burst any moment and this time it will out of reach all and none.

From reliable sources we understand that investors close political parties are accumulating IDBI and IFCI which clearly suggest and unexpected news flow in these 2 counters. Presumably Govt may announce a banking license in FICI whereas IDBI could be la SBI story and a rights issue is not discarded.

Another pattern which we have seen is that IDBI has made higher bottoms in every vallan and jumped to new high in every vallan. In Dec it had made bottom of 148 whereas in JAN it has made bottom of 159 which clearly indicate that the accumulation process is either completed and/or about to be completed.

Based on our observation we maintain a clear BUY in IDBI with a six month target of Rs 400 and 12 months of Rs 700.

New Tips

Hilton Metal, CMP- Rs. 48.10, Tgt- Rs. 62, Short term target
Astra Microwave products, CMP- Rs.135.30, Tgt- Rs. 205, Long term target.

Usher Agro Limited details wanted

please soe one give us details on usher agro

mercator lines

Mercator Lines, CMP- Rs. 129.5, Tgt- Rs. 255, Medium term

Reliance Power & Future IPO

Both have a very good response and we suggest subscribers to sell the same when the IPO GET LISTED and buy when the prices come down.

टिप्स for १७

Reccomend Buy Ispat at 65 Target 90 within 30 days expected

Reccomend Buy IDBI Bank at 165-175 Target for jan end is 185
6 months target 400

Buy Teledata at current market price target 350 in 5 months

Buy Ranbaxy at 390 target 550 in 45 days

Buy NTPC at 270 target 325 in short term

GMR Infrastructure, CMP- Rs. 218.30, Tgt- Rs. 340. Short term.