Indiabulls Ventures Ltd at Rs 33~ Up 100% in a month ~ More in Store?

Indiabulls Ventures Ltd at Rs 33~ Up 100% in a month ~ More in Store? ~ 52 Week high was Rs 39+ a year ago in July 2015 & 52 Week Low was Rs 13 this April 2016

The Market Cap from @ Rs 500 crs a month ago is now kissing Rs 1000 crs

It was earlier called Indiabulls Securities Ltd

The uptick has been brilliant in quick time & the writing has been on the wall..read that as Company Notifications on the BSE & NSE in the past few months

May 13,2016 ~ Granting of 9.5 Million Stock Options at an exercise price of Rs 16(current price at the time) under the ESOS 2009

June 15,2016 ~ Board Approval of a Preferential Issue of  58.3 m Convertible Warrants to Promoters & CEO at exercise price of Rs 19.75

June 20,2016 ~ EGM Notice for July 15,2016 to pass the Preferential Issue as above & SALE OF INVESTMENT 

July 2,2016 ~ Granting of 19.7 M Stock Options at an exercise price of Rs 24.15(price a few days ago) under ESOSs 2008 & 2009

So what’s the Big Deal ?

Big Deal is being planned to happen & that’s disclosed in the June 20,2016 Notification of SALE OF INVESTMENT for improving liquidity & reduction of debt purpose which is Item No 2 and relevant part extracted as below

“….to sell upto 100% of shares held by Indiabulls Distribution Services Limited, a wholly owned subsidiary of the Company (“IDSL”), in India Land and Properties Limited, a wholly owned subsidiary of IDSL, on the terms and conditions, including the consideration, which shall be more than the amount invested by IDSL, in such shares, as the Board may finalize” 

This actually is the Sale of One Indiabulls Park,Ambattur,Chennai which was bought in November 2014 at @ Rs 600 crs from Madrid Based NRI Investor Harish Fabiani (he’s also invested in Edelweiss & Indiabulls Group Companies + others)

FY 15 Consolidated Accounts as on March 31,2015

Consolidated FY 15 Accounts of Indiabulls Ventures Ltd shows Net Fixed Tangible Assets at Rs 550 crs  of which 77% is this Property reflected  with a aggregate value of Rs 426 crs ~ Rs 320 crs for the Building + Rs 15 crs for Furniture + Rs 91 crs for Plant & Machinery

Long Term Debt at March 31,2015 was Rs 331 crs ,all of which relating to the One Indiabull Park Property ~ 150 crs 10 year (monthly EMI) Lease Rental Discounting Facility + Rs 185 crs 5 year Loan Against Property

FY 15 also shows Goodwill on Consolidation of Rs 109 crs,most of which is related to this property acquisition by subsidiaries

FY 16 Consolidated Accounts as on March 31,2016 reveal : read more

Wow! A Full House NSE Training Fundamental Workshop !

Wow! A Full House NSE Training Fundamental Workshop yesterday !

Seems to get bigger & better every time !

Did the first one on August 8,2015 and had blogged on it  as linked below

Interesting Interaction at the NSE Equity Fundamental Training Workshop

Sunday, August 16th, 2015

Did this one too on “Interpretation of Financial Statements for Stock Analysis” under NSE’s Rapid Series at their NSE BKC Complex

@ 30 Participants,both genders aged 22 to 58 from leading Broking Firms,Corporates,Banks and even Individuals who had come on dot and stayed till 8 pm ! expecting to learn how to read financial statements and  market dynamics to assess risks and opportunities in Indian Equities

Common Question right from Manish Shah,who introduced himself  to me in the lift going up to the Class ” How are the Markets Looking “? ~ “Where will the Sensex & Nifty head in the short term”?

Had taken a Bull along ! really !…a smaller version of the Wall Street one….told the class I love four animals…Elephants (Lord Ganesha),Lions (My Zodiac Sign),Tortoise(Good Luck & of course Bulls (I’m always one!)….and you’ll always find them on my office desk !…in fact four bulls of various sizes !…and clients know my market view on simply seeing how the bulls are placed !…if facing them straight up  (↑)  as they sit across me,I’m very bullish…if slanted ( ⁄ )towards them,I’m bullish…slant inclination reveals how much !….if a horizontal view (↔ ) then indicates market will remain flat to rangebound and if the bulls face me vertically (↓ ) I’m bearish !….and slant facing me shows intensity of being bearish !

That got a few knowing laughs from the participants and set off the mood for the Workshop with humour being interspersed right through

Interacted on the Sensex Dynamics right from base year 1978 and in the last 20 years from November 1,1995 to October 30,2015 when despite nearly half of the @ 4850 trading days saw the Sensex close negatively the Sensex ran up over 650% !…but is that enough!…..the Opportunities & Threats that were clearly visible during the years right from 1991 when Modern Reforms set in to 2001 when Markets had bottomed  out on the ICE Age Melting to the Sharp drop in Interest rates from 14% to 7% in and around 2004 to post Lehman 2008 levels of 8000 in October 2008 and March 2009….showed them from current Sensex of 26657 how to assess fundamentally where we could be heading and the risks associated….discussed Passive Index Investing vs Active Investing and therefore the need for Fundamental Analysis and therefore the need to Interpret Financials & therefore the need to assess Value vs Price  & therefore this Workshop  ! read more

Edelweiss at 52 Week High Levels of Rs 60+ ~ What is Broking!?

Edelweiss at 52 Week High Levels of Rs 60+ ~ What is Broking!?  ….BSE showed over 8 lakh shares volume today and price stability at @ Rs 61

Edelweiss ~ A Royal Flower in the Swiss Alps or a Lovely Classic Song from The Sound of Music or just another Indian Broking & Financial Firm !?

It’s a No Brainer that Heady Market Day spells  great times for Broking Firms or Groups

Edelweiss has seen a High of Rs 1600 + in 2007 on a FV Rs 5 share….then came a split to FV Rs 1 in 2010 and a 1:1 Bonus Issue  in August 2010….so the high gets adjusted to Rs 160+

First many Employees,including Excustive Director Himanshu Kaji took the ESOP at Rs 33 in April 2014….then last week on June 12,2014 Rakesh Jhunjhunwala picked up One Crore Shares at Rs 55 in a BSE Deal with Greater Pacific Capital (GPC) Mauritius I & III LLC selling off and exiting completely now their eight and a half year stake after a part exit in 2010

Promoters Rashesh  Shah & Others held 37.15% of the Equity of Rs 76.90 crs held by nearly 131000 Shareholders at March 31,2014….of this Promoter holding 5.66 % are pledged or encumbered (2.10% of Total Equity)

FIIs held 22.58% of the Equity on March 31,2014.This needs to be adjusted for the GPC Mauritius Sale in June 2014…However in a May 17,2014 Meeting the Board has approved FII holding cap to be increased from 28% to 40% 

Here are the FY 14 Results….Consolidated Topline  was Rs 2534 crs with Bottomline at Rs 220 crs….EPS was Rs 2.86.Networth was Rs 2729 crs with Reserves at Rs 2657 crs and Investment in Company’s Own Shares deducted from Share Capital & Premium….this Investment is through Rs 160.81 crs lend to Employees Trusts which has been used to buy Shares for later alottment under ESOP…The Book Value is Rs 35.5

Relative Valuations at Share Price of Rs 61 give a PE of 21 and a PBV of 1.7

In April the  board approved a buyback from the Open Market upto Rs 45/share and an aggregate of Rs 145 crs….This Buy Back commenced on May 5,2014

The Own Capital Employed at March 31,2014 was Rs 2729 crs  with most of it deployed in Credit Activity that included Retail Finance

Segmentation is into 4 Revenue Streams ~ Credit incl Retail Finance most of it in Housing Finance,Commodities,Financial Markets including Asset Management & Life Insurance….Most of the Revenues ,Rs 1885 crs to be specific ,are from Capital or Fund Based Business….Finance Costs were Rs 1540 crs in FY 14 read more

Emkay Global @ Rs 17 in trouble as NSE rejects application to annul trades of October 5 2012

Emkay Global @ Rs 17 in trouble as NSE rejects application to annul trades of October 5 2012

On October 5,2012 Emkay Global suffered a Loss of Rs 51 crs on squaring up trades that were executed from a Templeton order  punched in by a dealer erroneously in  more quantum than it should have been ~ the order was of a value of Rs 17 lakhs but the dealer instead punched in 17 lakhs nos  and the order value shot to nearly a Rs 1000 crs ! of which nearly Rs 700 crs was executed before the mistake was discovered and thus had to be squared off

NSE after an extensive investigation just rejected Emkay’s application to cancel all the relevant Trades of October 5,2012 early morning as there was material error in punching

Emkay has also send a notice to the BSE as below

“We are in receipt of NSE letter dated April 30, 2013 on May 01, 2013 late in the evening regarding the decision of the Relevant Authority of NSE on the application made by us for the annulment of the error trade of October 5, 2012. The Relevant Authority of NSE has denied our application for annulment of trades arising out of a clearly erroneous entry of sale order on October 05, 2012. The Company is considering various legal course of action including challenging the decision in exercise of its statutory right to appeal.”.’

Emkay is quoted at Rs 17 (FV Rs 10) giving a market cap of Rs 41 crs ~ Promoters hold 73.24%

In March/April 2006 it came out with a Rs 75 crs IPO offerring 62.50 lakhs shares in the price bad of Rs 100 to Rs 120 ~ and the following year 2007/8 was their best with Profit of Rs 23.50 crs ~ since then the next four Financial Years  dragged down a loss in 2008/9 followed by Rs 8 crs each profit in the following years and again drifted to a marginal loss in FY 11/12

Current Book Value is Rs 50+ with Networth at Rs 134 crs of which Equity is Rs 24+ crs

Clearly Rs 51 crs loss will be a huge setback to Emkay ~ destabilising their operations big time in very competitive times ~ Emkay will surely appeal

Several years ago the Emkay Promoters had sought a meeting with me as one of their Broking Clients and my Advisory one had made a 600% + gains on his Portfolio inside a year and they wanted to meet with the guy whose advice did this ! ~ they had only recently set up a Research Team taking several analysts from a leading stock market media  house  and they wanted to tie up with me  ~ did not work out as I must have quoted too high I suppose !

…and it’s sad luck that Emkay did this deal on NSE and not BSE for BSE may just have helped them out given it’s past track record for doing so when during Broker Dominated Boards, EDs and Presidents have had to resign for malpractices ~ like opening the Exchange in the middle of the night to insert trades ! or else some brokers would have gone bankrupt on their positions ! read more

IndiaBulls Group is BILKING INDIA say Veritas ! ~ There’s more than Meets the Eyes on both sides !

IndiaBulls Group is BILKING INDIA say Veritas ! ~ There’s more than Meets the Eyes on both sides ! 

Was prompted by an editor of a leading Media Financial Publication for my views on the controversial research reports generated by Veritas,Canada on Listed Indian Companies

Veritas is a Bear on IndiaBulls 

Veritas,Canada released a Damning Research Report dated August 1,2012 on the IndiaBulls Group controversially titled BILKING INDIA !  ~ specifically covering three Companies IndiaBulls Real Estate at Rs 55.85,IndiaBulls Power at Rs 12.80 and IndiaBulls Financial Services at Rs 227.30

BILKING is a strong word ~ Obtain or withold Money by deceit or without justification,cheat or defraud ~ obtain money fradulently

This is My Immediate Take on The Veritas Research Report Controversy on the Indiabulls Group

On Veritas Motives

  1. Why do they come up with only Sell Reports ? ~ and that too just a hand full of companies have been covered in the past year ! ~ Are these Reports generated to create Big Bonanza through F & O Short Selling Quickies ~Yes,Veritas and Mr Neeraj Monga ! Why are there no Buy Reports !? ~ Nothing Worth Buying in India !? or you want Clients to make Monies only by Selling Off or Short Selling or Saving them from making the Investment! ?
  2. In my view this is unfair and unethical especially to other Clients already on the rolls ~ by agreeing to delay the IndiaBulls Report by one day just to tempt Altima,London to sign on for US $ 50000 a year for Research Reports generated by you so that they can act on the Report before it is issued for wider viewership ~ a question that follows is this ~ if these reports are a paid service then what does Mr Monga mean that he will delay the issue of the Report by one day !? what is he implying ? will he be issuing or leaking the report free ! to a wide audience who are not paying clients? ~ wonder if this borders on insider Trading !

On IndiaBulls Strong Reaction

  1.  In initiating Criminal action,IndiaBulls is sending out a Strong Threatening & Menacing Message ~ “Don’t Mess with Us!”  ~ perhaps only IndiaBulls can do the Messing around !

Neeraj Monga and Nitin Mangal,the Veritas analysts who have damned the IndiaBulls Group are seen as fearless crusaders by many as also foolish by some and with vested interests by quite a few~ their Motives are under the microscope in writing such a Damning Report ~ Veritas charges Signing up Clients an Annual Fee of US $ 50000 to receive such Reports ~ So Far these guys have damned the Reliance Group especially Reliance Industries and Reliance Communications,DLF and KingFisher ~ Their latest target has been the IndiaBulls Group

If you follow my blog you will not have to pay a single Dollar ! ~I’ve exposed quite a few Companies,including KingFisher Airlines ~ use the Search Engine to locate such posts

Check the tagline of my blog  ” In India,Companies may fall sick but promoters rarely do!”

When I wrote for leading Stock Publications in the past,for the benefit of Lakhs of Investors I have often exposed traunt listed companies and their unethical and fradulent  and manipulative operating and accounting practices~ Of course I’ve been threatened to be sued often until evidence is shown to the Companies and they back off ! ~ Scales and Stakes were in lakhs or a few Crores then unlike now where we are seeing hundreds and thousands of crores of rupees being raised in dubious ways and spend dubiously too ~ This Role of playing Watchdog  is the Responsibility of the Regulators and the Exchanges  ~ Let’s just say that only of late have they been bit by Conscience ! ~ otherwise only the small fry was fried ! ~ also the blatant and shameless rape of Investors by unscrupulous promoters and their network often has strong political patronage ~ and is supported by some in the mainstream  media,broking  and banking world Let me make it Clear though ! ~ I am not a Share Activist ! neither am I associated with any such Activism ! ~ the reason being the prime objective of any analysis I do of Companies in our Capital markets is to see if they merit Investment ~ my job is to make Monies for my Clients by investing in Winners and staying away from Losers or Controversial and Manipulated Companies ~ It’s nothing personal ~ I do not defame Companies ~ don’t really have to as many Promoters effect this Role well themselves ! But What I do do ! is caution readers of my blog on certain companies that I feel may strangle them ! ~ Karuturi Global @ 25 (now 4 ! and was touted by many as a multibagger on big stock channels as Company gave ads on these channels ) or Cranes Software @ 25  (god knows what it’s now)

What these Veritas Analysts are doing is nothing new ~They are Analysing and Interpreting Financial Statements and Disclosures questioning Controversial & Vulnerable Big Companies Motives and Gameplan in their Operations,especially in Corporate Restructuring Exercises that involve Valuations and Raising of Finance and the myraid structure of related entities involved that benefits from Inflated valuations that are even certified by renowned auditing firms ! ~ remember the infamous Maytas and Satyam Real Estate Valuation Report of Rs 6000+ crs by a Big Four Auditing Firm that was prepared in just one day to facilitate the merger of Maytas into Satyam to fill the hole of an equivalent amount !!! Check my many blogs on this in the category of ‘Satyam ~ The sordid Asatyam Saga’

Veritas Analysts are Tearing Up the way certain Revenues,Expenses,Assets and Liabilities are presented in the Financial Statements or simply not disclosed properly to reach conclusions that the Company is weaker or not as strong as the Statements Portrays read more

Request by BSE Brokers Forum to respond to their Investor Survey

It will take just a few minutes of your time….

The Vice Chairman of the BSE Brokers Forum called to request that I provide this link of theirs on my Blog for an Investors Survey of 25 Questions…I have responded by answering the survey myself as well as providing you’ll the link below

It’s an interesting  and long overdue genuine endeavour by BSE Brokers to reach out to all Investors for their Views and Inputs so that The Integrity of Operations & Systems & Processes can be improved

Please do participate in the BSE Brokers Forum Survey by clicking below…While the Survey has been designed in a ‘Tick your Pick’  Structure the Subjective Box at the end allows you to speak your mind too  

https://www.surveymonkey.com/s/bbf_survey_capmkt2012 

Thanks