Gudi Padwa Special: Accelya

Accelya Kale

Buy this wealth creator on Gudhi Padwa today at 758-760 levels with a small risk stop loss of 724 for a near term target of 1050 to 1200 once it closes above 825-835 levels for two days.

Accelya voted as 'IT Company of the Year' for 2014

Its in business of providing IT-solutions to Airways sector. The current market capitalization stands at Rs 1,128.43 crore.The company has reported a consolidated sales of Rs 73.31 crore and a Net Profit of Rs 20.3 crore for the quarter ended Dec 2013. Yearly revenue is around Rs.285-290 crore and Net profit at Rs.80 crore, a margin of 28%!!

Promoters stake is at 74.66% while FII have less than 0.5% stake. This means risk of falling when Nifty goes deep in red is minmal. Also, as promoters hold a high stake, just 1% more rise in stake and it becomes a delisting candidate. So to continue the current position, promoters need to sell their stake which should be 25% to 30% in premium to current market price of 760, which comes around Rs.950 per share.

Short term call: Glenmark

Glenmark Pharma : Largest pharma in terms of revenues

The share of Glenmark pharma can prove to be a wealth creator at this point of time. The stocks looks ready to find a bottom in coming 1st week of April. Around 540-45 is a strong support which can give the stock a bounce to 590 levels.
Above this, we can see 630-680 levels coming in period of 6months.

So go ahead and Buy with a sound stoploss of 540 on closing basis for a target of 590 in 2-3 weeks.

Medium term call: MCX

MCX INDIA

The charts of MCX shows a good consolidation with 500 as a mean level. Currently its trading around 487-490. This is a good level to buy this highest profitable exchange.

MCX has 87% market share in the Indian commodity derivatives market.
Also, the story of stake sale of MCX through FT is due in April month. CME Inc (its a big shark) and BSE of India are two of the ten interested buyers of MCX stake.
This should give MCX rich valuation of 4000Cr to 5000Cr which translates to 800 to 1000 per share of valuation. A 22 to 27 of EPS is appropriate valuation.


550 is the breakout point, above which it will try to test 625-50 levels and so on..
One weekly close above 500 should mean that the stock is ripe to move up.

  The stock has shown descending triangle pattern which is bearish, so caution is advised in opening up new position.
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1 year charts speaks about a profitable opportunity ahead:

A strong break out above 500-550 should take it to 1100+ levels!! a multi-bagger in making guys.. the risk is too low and rewards too good to be true to act upon!

Weekend Show: M.A. Yusuf Ali, Leading Business man and philanthropist

 Yusuffali Musaliam Veettil Abdul Kader 
Born: 15 November 1955
 in Nattika, Thrissur district 

Awards: Padma Shri (2008)
Pravasi Bharatiya Samman Award (2005) 
Commander of the Syriac Orthodox Church (2004)
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Yusuffali was only 16 years old in 1973 when he embarked on a 14-day voyage to join his family members who were running a small trading establishment in the Abu Dhabi souk.

Yusuffali went on to become a regular supplier of frozen foods and other items to expatriates from Western countries. Soon he forayed into the wholesale distribution of frozen foods in poultry and meat.

The turning point came when he opened the first retail outlet in Abu Dhabi.

The Kuwait-Iraq war was under way when Yusuffali decided to take the risk of investing more money in the business.

His venture not only turned out to be successful but also won him the support of the rulers as he was one of the very few who stayed back and made investments, while others were leaving.

The big expansion came in 2000, when he opened the first hypermarket in Dubai. Soon, the LuLu brand spread all over the UAE, Oman, Kuwait, Bahrain and Saudi Arabia.
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Incidentally, MA Yusuffali has a number of other banking stocks in his portfolio such as Federal Bank, Dhanlaxmi Bank and Catholic Syrian Bank. He holds a massive chunk of 315.77 lakh shares of Federal Bank (3.69%) worth a whopping Rs. 264 crore. He bought the shares in July 2013 and is its’ single largest shareholder. He has 52.90 lakh shares in Dhanlaxmi Bank (4.88%) worth Rs. 20 crore. He also has a 4.99% stake in the unlisted Catholic Syrian Bank

Politicians from his home state describe him as the 'unofficial ambassador' of Kerala in the Gulf region.

His role in settling disputes between Kerala and Dubai over the SmartCity project — an IT special economic zone being set up in Kochi in a joint venture between the Kerala government and a subsidiary of Dubai Holdings — or his role as facilitator of investment or as the provider of jobs to nearly 24,000 Malayalees have all contributed to this title.

In Kerala, the LuLu group's first investment was a convention centre in Thrissur at a cost of Rs 145 crore. The LuLu Shopping Mall and Marriott Hotel in Kochi have been built at a cost of Rs 1,600 crore.

The two other projects of the LuLu group in the state are a flight catering service at a cost of Rs 65 crore and the Airport Marriott Hotel in Kochi at a cost of Rs 150 crore.

In other words the group has so far invested Rs 1,960 crore in projects in Kerala.

Apart from this, the LuLu group is one of the leading investors in the equity of a local bank and Cochin International Airport Ltd. 

Weekend Show: Lakshmi Mittal - Success Story

Born: June 15, 1950, Sadulpur, Rajasthan, India.

• Occupation: Chairman & CEO of Arcelor Mittal
• Net worth: $16.7 billion USD (2014)
• Fortune: Inherited and growing
• Source: Steel
• Industry: Manufacturing
• Website: mittalsteel.com
• Marital Status: Married, 2 children
• Education: St Xavier's College Calcutta, Bachelor of Arts / Science.
• Award: Padma Vibhushan (2008)

 Lakshmi Narayan Mittal (born June 15, 1950) is a London-based Indian billionaire industrialist, born in Sadulpur Village, in the Churu district of Rajasthan, India, and residing in Kensington, London. He is the fifth richest person in the world, with a personal fortune of US$32.0 billion according to Forbes 500.The Financial Times named Mittal its 2006 Person of the Year. In May 2007, he was named one of the "100 most influential people" by Time magazine.

Lakshmi spent his first years in India, living with his extended family on bare floors and rope beds in a house built by his grandfather. His family, from the Marwari Aggarwal castel, was from humble roots; his grandfather worked for the Tarachand Ghanshyamdas Poddar firm, one of the leading Marwari industrial firms of pre-independence India. They eventually moved to Calcutta where his father, Mohan, became a partner in a steel company and made a fortune.

Lakshmi was a keen student and his classmates knew him as a sharp student who was good with numbers. He graduated at the top from St. Xavier's College in Calcutta (Now known as Kolkata) with a Bachelor of Commerce degree in Business and Accounting in 1969.

Lakshmi Mittal began his career working in the family's steelmaking business in India, and in 1976, when the family founded its own steel business, Mittal set out to establish its international division, beginning with the buying of a run-down plant in Indonesia. Shortly afterwards he married Usha, the daughter of a well-to-do moneylender. In 1994, due to differences with his father and brothers, he branched out on his own, taking over the international operations of the Mittal steel business, which was already owned by the family. The family of Mittal never spoke to the public about the reasons for the split, although, there were rumors it was due to financial instablity between the brothers.

Controversy erupted in 2002 as Plaid MP Adam Price exposed the link between U.K. prime minister Tony Blair and steel magnate Lakshmi Mittal in the Mittal Affair, also known as

'Garbagegate' or Cash for Influence. Mittal's LNM steel company, registered in the Dutch Antilles and maintaining less than 1% of its 100,000 plus workforce in the U.K., sought Blair's aid in its bid to purchase Romania's state steel industry. The letter from Blair to the Romanian government, a copy of which Price was able to obtain, hinted that the privatisation of the firm and sale to Mittal might help smooth the way for Romania's entry into the European Union.

The letter had a passage in it removed just prior to Blair's signing of it, describing Mittal as "a friend."

In exchange for Blair's support Mittal, already a Labour contributor, donated £125,000 more to Labour party funds a week after the 2001 U.K. General Elections, while as many as six-thousand Welsh steelworkers were laid off that same year, Price and others pointed out. Mittal's company, then the fourth largest in the world, was a "major global competitor of Britain's own struggling steel industry, Corus, formerly known as British Steel." Corus and Valkia Limited were two of the primary employers in south Wales, particularly in Ebbw Vale, Llanwern, and Port Talbot.

Since 2005, Mittal has been the richest person residing in the United Kingdom. He is the President of the Board of Directors and CEO of Arcelor Mittal; Arcelor Mittal is the world's largest producer of steel, with assets in France, Belgium, Romania, Bosnia-Herzegovina, South Africa, Poland, Czech Republic, Indonesia, Kazakhstan, Canada, Bulgaria, United States and Brazil. On July 13, 2005 it was announced that he had donated £2 million to the Labour Party, and on January 16, 2007 it was announced that he had donated a further £3 million. Although Mittal has been living abroad for many years, he claims he will remain an Indian.

In March 2007, Mittal was reported to be the 5th wealthiest person in the world by Forbes Magazine (up from 61st richest in 2004). The Mittal family owns 44% of Arcelor Mittal, the world's largest steel company. His residence at 18-19 Kensington Palace Gardens was bought from Formula One car racing boss Bernie Ecclestone in 2004 for £57.1 million ($105.7 million), the world's highest price ever paid for a house. Formerly, this house was the residence of Paul Reuter, the founder of the Reuters news service.

Mittal has two children. His son, Aditya Mittal, is the CFO of Arcelor Mittal. Mittal paid over £30 million to host his daughter Vanisha's wedding celebration in Vaux le Vicomte on 22 June 2004 and an engagement ceremony at the Palace of Versailles on 20 June 2004, the world's most expensive wedding ever. He even hosted a Bollywood night where superstars like Rani Mukerji, Saif Ali Khan, Shahrukh Khan and Aishwarya Rai performed. Kylie Minogue also sang on stage.

Mittal's house in Kensington, London is decorated with marble taken from the same quarry that supplied the Taj Mahal. The extravagant show of wealth has been deemed the "Taj Mittal."

Recently, Mittal has emerged as a leading contender to buy Barclays Premiership clubs Wigan and Everton, but has so far refused to comment.

As of 8th October 2007, the 44.79% stake which the Mittal family have in Arcelor-Mittal was worth $47.159 billion dollars, down from $48.4 billion in late September. This makes him the world's 5th wealthiest man after Bill Gates, Warren Buffet, Carlos Slim and Ingvar Kamprad. As of 11th October 2007, his stake was worth $50.56 billion dollars, making him the fifth person in the world to have more than $50 b wealth.

After witnessing India win only one medal, bronze, in the 2000 Olympics, and one medal, silver, at the 2004 Olympics, Mittal decided to set up Mittal Champions Trust with U$9 million to support 10 Indian athletes with world-beating potential.

For Comic Relief 2007, he matched the money raised (~£1 million) on the celebrity special BBC programme, The Apprentice.

 

Medium Term Call: SKFINDIA

The bearing's giant is the next medium term pick. 

SKF is a leading global supplier of bearings, seals, mechatronics, lubrication systems, and services which include technical support, maintenance and reliability services, engineering consulting and training. SKF is represented in more than 130 countries and has around 15,000 distributor locations worldwide. Annual sales in 2012 were SEK 64,757 million (1SEK, Swidish Krona = INR9.5) and the number of employees was 46,775. www.skf.com
 In India, SKF India Ltd has 3 manufacturing centres catering to Two-wheelers, Automotive, Industrial & Electrical sectors. It is preffered bearings supplier of Maruti, it has received award from Dun & Bradstreet for being Top Indian company in bearing's sector!

SKF has seen huge accumulation by HDFC mutual fund family along with Reliance mutual fund and other likes. The company is debt free and has highest market cap of Rs.3935 Crores amongst its indian peers which translates to highest market share for its products & services. On a face value of 10 the company is giving Rs.7.5 as dividend (Record date 16th to 24th April 2014). The company is expected to showrobust performance with new products catering to Heavy Commercial Vehicle segment like Tractors, cranes trailers etc and also Railways. Current EPS is Rs.31.3 and expected growth of 20% in this year by Dec 2014. With a Price to Earnings ratio of 23x the expected price would be Rs.863 this is 15.5% above current price of 747.
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Technical view:
On weekly basis (medium term outlook) SKFINDIA has broken the downward sloping channel at 550 and since then it has shown strong uptrend current.
It started its 1st wave at 450 finished it at 690 and 2 wave began after that which seems to be completed at 625. The major 3rd wave is in progress. The 3rd wave has wave a, b & c constituted in it out of which 3.a has finished at 780, 3.b should be done around 720s and 3.c which will be too strong should commence from there.
Wave 1 (450 to 690) = 240points
Wave 2 (690 to 625) = 65 points (27% retracement of wave 1)
Wave 3 should ideally be 1.61 times Wave1(minimum) = (240*1.618) = 388+
So from 720-740 zone Wave 3 should see (730+388) = 1118 levels within span of 3-4months from now that is around June -July.
The SL for this setup should be 690. below which the wave counts would re assert and stock might test 625 levels again.

Overall, fundamentally the scrip is in strong hands with FII holding of 15% & DII holding of 17%+, fundamentally 863 is the target while technically the 1100+ is the target expected within 3-4 months. Current market statistics shows 45% of shares traded everyday are accumulated by investors which shows strong base build up at 740s zone.
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