*Cmp only 21% of 52 week High:Religare Enterprise Ltd*
Daily traded volumes have touched 1.20-1.30 crore shares with delivery touching 5 million shares. Lenders had invoked pledge of 5+crore shares. And same being sold and hence, such high volumes. And entire selling being absorbed by knowledgeable circles.
_Once selling by lenders finishes, volumes can dry and stock will go up and up_
*SOME BIG ANNOUNCEMENT ABOUT LARGE FUNDS INFUSION POSSIBLE IN NEXT FEW WEEKS*
*TO RAISE 12000 CR: PUNJAB NATIONAL BANK* TP 250
MD Sunil Mehta has stated that country's second largest state run lender PNB is looking to _raise 12000 Crores selling real estate including its headquarters, dilute it's stake in PNB Housing Finance and exit mutual fund business_
Mehta said bank has received permission to sell its 20% stake in PNB Asset Management while reducing its stake in PNB Housing Finance *by 9% from current 39%*. Mehta also said that bank has started process of selling various real estate assets
*AVAILABLE AT 1XBOOK VALUE MOTILAL OSWAL HAS RAISED TP FROM 184 TO 250*
With stronger Balance Sheet, PNB is expected to get large amount from recapitalisation scheme
Best buy in PSU banks
*HUGE TRIGGER FOR POWERGRID: Rly to Electrify 30000 km*
Indian Railways has decided to Electrify 30000 km track @ 8000 km each year at 35000 crore capex.
PowerGrid with existing network of *140000 km of transmission lines will be main contender and LARGEST recipient of Rly order*. PowerGrid had already secured trial tender for 800 km earlier.
*CLSA On Power Grid*
_Best is yet to come_
Raise EPS by 1-2%
*Buy with TP 260*
Pipeline of $20bn is likely to capitalise by FY21
BUY PGRID of India ; 🎯 *TP 252 : Edelweiss*
Edelweiss is bullish on Power Grid Corporation has recommended BUY rating on the stock with a target price of Rs 252 in research report
Denofwealth: PowerGrid is crown jewel of PSUs having finest strongest mgtmnt with vision. *Largest transmission co in the world*
CLSA and Edelweiss TP without potential of Rly orders
*PowerGrid must for every portfolio. Can be 3x in 3 years*
*WHY SO BULLISH on Panchmahal Steel*
In our earlier notes, Denofwealth has given steep TP. Reasons:
1) Present capacity utilisation just 30% which can be 50% next year
2) Production capacity 72000 tonnes with 1.50 lac ton melting shop. It gives fair value of Rs 400/share
3) 10 acres of surplus land ( mkt value 100cr+) can be used for big expansion of capacity in 2020
4) BIG CORPORATE TRIGGER: ABC Bearing-Timken type deal in PSL. PSL promoter *WILL* exit after 12-15 months in favour of *oldest steel giant* and stock will be rerated.
_Not for traders as there can be hiccups of profit booking_
_Investors with 2 year patience can reap rich harvest_
TP 300 in 2 years, barring unforeseen circumstances
P.S.: PSL in specialised technical steel making Rods/Wires, not commodity steel, benefits emerging from GST
SUZLON Q2: WORSE BEYOND ALL BELIEF
Revenues *down 56.5%* at Rs 1193 cr vs Rs 2742 cr
Net profit down 72% at Rs 68 cr vs Rs 243.75 cr
EBITDA down 81% at Rs 107 cr vs Rs 559 cr
Margins at *9% vs 20.4%*
*Actual PBT loss of 374 cr. Vs profit of 251 cr yoy. Exceptional gain of 454 cr converts LOSS in PAT*
_Working capital days up to 94 days (highest is 5 years - big negative)_
*Working capital debt in Q2 at 3244 cr vs 2000 cr in March 17*
Massive FCCBs coversion in the pipeline which will further expand already bloated equity
*EBITDA MARGINS NEGATIVE*
Company in its presentation did not mention Q2 details
FCCB conversion price is 15.46 per share. Management trying to keep shares above 15.5 so that all pending 67 crore shares under FCCBs can get converted. If stock goes below Rs15 stock will see vertical fall
FUNDAMENTALLY HUGELY OVERPRICED. STAY SHORT.
*ABOVE & BEYOND*
Coal India Ltd Q2
Denofwealth had initially estimated Q2 PAT at 450 Crores Vs Bloomberg est of 2031 Cr. Subsequently denofwealth tweeted that PAT can be as low as 360 Crores AND co has declared 369 Crores PAT
We feel that in no part of the world, employee cost eat up 50% of mining co revenue EXCEPT Coal India. Coal has provided only 2300 Cr for wage revision. It means 4300 Cr remains to be provided in H2.
Best part is that in investor presentation, Coal has compared *H1 no's YoY and not mentioning about extremely bad Q2 no's*
Mgtmnt may make lofty promises to sustain share price but they never mentioned in Q1 presentation that Q2 will be bad
