*DUSSEHRA GIFT FOR DoW FOLLOWERS*

SSPDL Ltd (530821)

Equity    12.93cr

NP          16.31ce

EPS Rs.  12.61

Chennai based Real Estate DEBTFREE co

DOW TIMES on Monday will make public BIG corporate trigger

_TP 115-120 by next weekend_

You can buy NOW

*FINAL IDENTITY:TFCI BUYER*

IFCI has so far not announced name of buyer for its TFCI stake.

But here DoW is giving ACCURATE Breaking News that promoter partner of  *Singapore based FII which has 2 billion dollar fund and specialists in stressed assets ( and have floated finance co in India in partnership with Shapoorji Pallonji)*has won the bid for TFCI. There is possibility of block deal with IFCI today.
With  new owners of TFCI, stock will be rerated

TFCI is _only nbfc available at 2xPrice/Book_

TFCI existing Networth is 600+ Crores. And borrowings just 1000+ Crores. *On existing Networth itself, TFCI can borrow total 3600 Crores*

_Security coverage ratio is 3x_

*Cost-Income ratio is amongst Lowest*

FY18Eeps 11-12

*Expect negligible NPA by current year end*

TFCI can be 300 in 12-15 months

TFCI: Update

IFCI has already finalized winner for TFCI stake sale on 25th. Since no announcement in this regard so far, traders have been selling. Aided by bad mkt, stock has been falling BUT HUGE VOLUMES

As per our info, IFCI should make this announcement anytime soon as first, IFCI is doing legal formalities of signing Agreement with buyer

Now regarding identity of buyer, as per our *reliable insider* Singapore based FII has won the bid for TFCI
With Private Equity Fund as new owner of TFCI, stock will be rerated

We may repeat that TFCI is _only nbfc available at 2xPrice/Book_

TFCI can be 300 in 12 months

Investors can add more

*URGENT OPPORTUNITY OF HIGH REWARD VERY LOW RISK: TFCI*

Last day to submit bid is 3pm today

We reliably learn that bids will be opened today itself at 5pm and Winner Highest Bidder should be declared by 6-7pm

It is almost unlikely that bids for management control will be at a price lower than cmp. Any entity deserves minimum 20% for giving away ownership.
When last week stock was 170+, bids could have been at 200-220 minimum.
However considering lower cmp today, still bids must be at 180-200.

Downside from cmp appears almost nil and upside can be 20%/much higher

Hence investors at last moments may add more

TFCI: No need to panic

Due severe fall in market for 2 consecutive days, TFCI too has come down. However we advise our investors not to panic. We are confident that bidding for TFCI stake should be at 200+. Today is last date for bidding and winner should be announced in next few days.

*Fundamentally also, co on strong ground and Undervalued. In the past we have seen that management change brings revolution in fortunes of the co. Kishor Biyani exited Capital First at 150. Now stock is 5x.  Hindustan Zinc after changing hands to Vedanta group is 200x. Govt proposing hardly 10% sale in BEML to private investors and stock has zoomed from 900 although no concrete plan still about 10% stake sale*
Under this govt, TFCI will be first co to be fully privatised. *TFCI can be another Capital First*

TFCI: POTENTIAL OF 100% CAGR

As a Govt undertaking, TFCI follows internal policy to disburse maximum 50crores per account. However, new private sector promoter will scrap such internal guidelines and *will disburse much bigger amounts*.  Hence, for initial 2-3 years, _TFCI can grow even 100% as TFCI will also diversify in HFC, Retail Finance_

*HIGHEST C.R.R:TFCI*

TFCI can be credited with HIGHEST CRR in NBFC industry in India. With CRR of 43%, TFCI can raise funds at as low as 7%.
*As per our fully reliable source, India's biggest electronic/TV media moghul ZEE is also ready to bid for TFCI*

*ZERO NPA*

TFCI: As per our reliable source, TFCI has made recovery in 3 big NPA accounts. Hence there is likelihood that TFCI may become *first Indian NBFC with zero NPA*
Stock is bound to be rerated

Moreover, hardly any investor knows that TFCI has strongest/highest collateral security. For example ( hypothetical), a hotel borrows 30 Crores from TFCI but has to pledge hotel property ( in favour of TFCI) which may be worth 200 Crores. Hence, TFCI *never takes haircut*

TP Rs 500 in 3 years

BREAKING NEWS:TFCI

IFCI had invited bids for stake sale of TFCI.

LAST DATE FOR SUBMISSION OF BIDS IS 25th September

*As per our most reliable information, bids being submitted are as high as Rs 200 to 220*. Open offer will follow in early October.

Bidders in race include

Cox & Kings
Thomas Cook
Mahindra Holiday Resort
Zee Group
Sajjan Jindal

_TFCI bound to cross 200 once winner is announced by September-end_

BEST BUY

Stock can be 500 in 2 years

*Bharat Bijlee Ltd:TP 2200-2400*

Rationale for recommendation due to Growth Story emerging Core business along with HUGE INTRINSIC VALUE ( nearly 3x of CMP)
❖ Bharat Bijlee Limited established in 1946 , is one of the leaders in the electrical engineering industry in India.

A multi-product, multi-divisional organization, its main business segments are Transformers, Projects, Electric Motors, Elevator Systems and Drives & Automation.

Bharat Bijlee (BBL) operates in two business segments—power systems (56% top line) and industrial systems (44% top line).

Intra-state investments in 13th Plan to drive demand for power transformers

In the 13th Plan, intra-state investments of INR 1,30,000 cr under category 132kV to 220kV and 400 kV are envisaged. These investments will be contributed by state transcoms and central government sponsored schemes (IPDS+DDUGJY).

BBL to be a strong beneficary of these investments as the as company has establisehed strong credentials in 132 kV to 220 kV class transformers up to 200 MVA range.

BBL’s Industrial systems business is expected to grow gradually as industrial capex is slowly pick up.

However, BBL continues to adopt a conservative approach towards building the order book in order to ensure that margins, project readiness for timely completion and collection of dues do not drag the performance and profitability of the business

With government aggressive mission of ‘Electricity for all by 2019’ will be the demand driver for the power and capital goods sector.

Institutional  Share Holdings in BBL is 17%

FINANCIALS
                FY17 FY18E

Sales.     690.    750

PAT.        19.61.    23

Equity.      5.65

*EPS Rs.   34.70. 40.70*

Book Value Rs 510

Stock is trading at 30xFY18Eeps

BBL can report EPS of 50+ next year

However BBL deserves much much higher valuations due to HUGE VALUE OF ITS OTHER ASSETS:

A)  _Market Value of Listed Shares (Siemens, HDFC, ICICI etc) is around 390 Cr_ which works out toRs
*690 Per Share*

B) *BBL has  Rs.150Cr Cash/ cash equivalent. Works out to  Rs.263 Per Share*

C) BBL has its plant in Airoli Navi Mumbai ( which had become big IT hub)and the land parcel 20,00,000 Sq Feet. Very conservative market rate in Airoli is 7000 per Sq Feet. Thus, this LAND PARCEL IS WORTH 1400CR.

*TOTAL VALUE OF 3 ASSETS NAMELY INVESTMENTS, CASH, LAND BANK IS 1940 CR* AS AGAINST MKTCAP OF  680Cr

_Translates into Value of Rs.3430 whereas CMP is 1200_

BBL has potential to be 2x in 12-18 months

A strong Buy

*Game Changer: Jyoti Structures Ltd*

As per our reliable sources, lenders/banks likely to take *70-75% haircut on entire loan portfolio*

It means total debt of JSL ( around 7000 Cr which includes Interest, penal interest as well) can fall below 2000 Crores. Such low debt coupled with induction of new promoters, JSL can turn corner as early as next year.
And JSL may not be cakewalk for KEC as Shapoorji Pallonji has also made very aggressive bid.

All in all, shareholders of JSL set for better Future

High volumes despite T group indicates that stock being accumulated by knowledgeable investors

TP 25 in near term

*Resolution Next Month: TP Rs 22-25*

JYOTI STRUCTURES LTD

NCLT has already received bids for JSL.
KEC International ( biggest in transmission tower) most keen to acquire JSL which provides 2 big bang advantage:

1) 1400 Cr carry forward losses of JSL will provide biggest tax cushion to KEC. KEC may not have to pay income tax for next 5-6 years

2) Acquisition of JSL will further consolidate transmission tower industry and KEC will become undisputed king with Kalpataru far behind

As per our sources JSL shareholders can get *open offer @ Rs 25*

Hence, investors can gain nearly 100% from current mkt price

*HIGHEST C.R.R:TFCI*

TFCI can be credited with HIGHEST CRR in NBFC industry in India. With CRR of 43%, TFCI can raise funds at as low as 7%.
*As per our fully reliable source, India's biggest electronic/TV media moghul is also ready to bid for TFCI*

*ZERO NPA*

TFCI: As per our reliable source, TFCI has made recovery in 3 big NPA accounts. Hence there is likelihood that TFCI may become *first Indian NBFC with zero NPA*
Stock is bound to be rerated

Moreover, hardly any investor knows that TFCI has strongest/highest collateral security. For example ( hypothetical), a hotel borrows 30 Crores from TFCI but has to pledge hotel property ( in favour of TFCI) which may be worth 200 Crores. Hence, TFCI *never takes haircut*

TP Rs 500 in 3 years

Superb Q1:RCI Industries

RCI industries has reported excellent growth for Q1:

              Q1FY18 Q1FY17

Sales.    555.       419

PAT.        8.22.      2.83

EPS.        6.13.      2.60

Sharp improvement in margins. *Sales have grown by 32% to 555cr whereas NP zooms by 190% to 8.22cr*

Q1 EPS Rs 6.13.

RCI is on course to achieve EPS of 31 for FY18. *Stock is trading at _6.60xFY18eEPS_*

*CAN BE 2x: Shree Karthik Papers Ltd*

Coimbatore based SKPL is engaged in production of writing and printing paper with capacity of 14000 tonnes per annum. SKPL uses waste paper as raw material. _Total land area is 30acres_

With revival of paper industry, SKPL has been doing extremely well and share price appears poised for big rise

FINANCIALS:

               Q1FY18 Q1FY17

Sales      16.31.    9.27

NP.            1.28.   -0.38

Equity.       9.55

For FY17 , co had reported sales of 47.62cr with PAT of 2.21 Cr

However co has put stellar performance for Q1:

*Sales have risen to 16.31 Cr Vs 9.27cr and PAT 1.28cr Vs Loss of 38lacs*

For FY18, SKPL should report sales of 68-70cr and 5.75cr PAT.

PROMOTER STAKE 74.52%

Mkt value of 30acre land alone is more than its mkt cap. On this vast land, co can undertake big expansion of production capacity

TP Rs Rs 35-38 in 4-6 months

TFCI: Cox & Kings, Mahindra Holidays keen on Tourism Fin stake from IFCI

Line of suitors will continue to get longer. We reiterate that disinvestment at 180+

Worth buying even now for SURESHOT gains

*ZERO NPA*

TFCI: As per our reliable source, TFCI has made recovery in 3 big NPA accounts. Hence there is likelihood that TFCI may become *first Indian NBFC with zero NPA*
Stock is bound to be rerated

Moreover, hardly any investor knows that TFCI has strongest/highest collateral security. For example ( hypothetical), a hotel borrows 30 Crores from TFCI but has to pledge hotel property ( in favour of TFCI) which may be worth 200 Crores. Hence, TFCI *never takes haircut*

TP Rs 500 in 3 years

Dhanlaxmi bank vs CSB

Recently there is news that Catholic Syrian Bank ( not listed) may be acquired by Fairfax @ 160 per share.

FY17 Financials in terms of NPA and NP of CSB are lower/weaker compared to Dhanlaxmi bank.

Using this yardstick of Valuations, DBL going dirt cheap and _can definitely be in 3 digits in 2018_
DBL Nnpa already down to 2.58%. We estimate that *Nnpa for FY18 may be as low as 1-1.25%*

DBL AMONGST OUR TOP PICKS. Q2 NOs *(Q2 NP can be 25cr)* WILL RERATE DBL

DoW Exclusive ANDHRA CEMENT

3 giants in talks to acquire management control by buying out promoter stake
*Ultra tech is front runner. Announcement expected in few weeks*

TP 18-21 September End

*Kaveri Seed (KSCL) - A short term technical perspective*
KSCL was in the limelight during QIFY18 results time when the share price zoomed from Rs.620 to a 52-week high of Rs708. The stock encountered distribution/selling at that level and tanked all the way down to Rs.498 in spite of posting the best ever results, typifying the adage- "sell on good news". Undoubtedly, such a steep fall could have been triggered due to the exit of some big stake holder in the company's share portfolio. After the steep correction, the stock is consolidating in the range of Rs.520 & Rs.570 and is positioning itself to go past the upper band. It looks that the present consolidation will trigger an up move which will initially take the share price to Rs.600-620 and then to Rs.640 and Rs.680 levels. On the downside, the stock gets firm supports at Rs.520 and Rs.480. Though the stock has been under performing the index for the last one month or so, I expect the stock to move in tandem with the broader market...
G R CHARI

http://www.livemint.com/Companies/45xVvN5svSR1YtXqudSIfL/Thomas-Cook-in-race-to-acquire-IFCIs-2609-stake-in-Touris.html

Highly aggressive bidding will take place. Entity like Thomas Cook and some other foreign institutions, stake sale likely at 180+

*Balasore Alloy Ltd*

BAL is 2nd largest producer of Ferro Chrome in India. Co has its _own captive Ore mines_. Hence cost of production of Ferro Chrome per ton is largely fixed.

Balasore alloy had produced 1.22 lac tonnes in FY16.

Production in FY17 was1.31 lac tonnes

_Co is in position to produce 1.40 lac ton in FY18 as installed capacity is 1.46 lac ton_

Financials:

                FY17

Sales.      1012

NP.               90

Equity.     44.4

EPS Rs.   10(diluted)

Balasore made NP of 43.52 cr in 9 month of current year on 39.44 cr Equity. No *NP OF Q4 ALONE IS 46 CR*

a) BAL is lowest cost producer of Ferro Chrome with cost of Rs60000 per ton.

b). One-third of contracts are booked on yearly basis. It means co  got benefit of high price in H1 as well
c) 50% contracts are quarterly basis. So impact of higher price would have  added to profits in Q1

d) one-third contracts are booked on spot basis.

Co has already started work for underground mining of Ore

As per our analysis, considering orders under execution,  *Balasore can post NP of 30+ cr for Q1*.

*For FY18 Balasore can achieve NP of MINIMUM 105cr*

_EPS for FY18 can be 11.70_. Stock is trading at *just 5.10xFY18Eeps*

BAL appears underpriced and there is scope for decent appreciation.

We expect stock can be 85 in 3 months and 110  9 months

An excellent Buy

*$Tourism Finance - a Technical Update$*
The share rallied from Rs.55 to Rs.115 during March-May 2017 and then moved in a sideways direction b/w Rs.90 & Rs.115. However, this consolidation phase of sideways movement was broken on the upside with the *stock hitting a new yearly high at Rs.121.75 with good volumes*. With the positive P/V action, the *stock is on the threshold of a new bull run* (with minor corrections). *The stock is getting accumulated and moving into strong, knowledgeable hands* and the price *should touch Rs.140 in the near term*. The medium term prospect and re-rating of share will depend on future developments in the company/industry. The share is ready for a take-off and is *still available at an attractive price and can be bought for good appreciation in both short to medium term.*

By Sh G R Chari