Saturday, April 25, 2015

IL&FS ENGINEERING AND CONSTRUCTION COMPANY LTD. - UPDATE


 


 
IL &FS Engineering and Construction is one stock I suggested as a BUY @ Rs.98 which is currently trading 15 % below the suggested price. Yesterday company announced the receipt of an order worth Rs. 326.99 Crores from  Bangalore Metro Rail Corporation Limited. ( Link HERE) .Currently company's total order book is around  Ten Thousand Crore  which giving very good visibility for future. Recently one visual media interpreted the revision of project cost  of one of their projects as a 'Scam' and I received lot of queries from my readers to express my opinion about the company post this event. To my understanding , this is one project originally awarded to a consortium of Maytas infra and Gayatri Projects .( Later  Maytas changed its name to  IL&FS Engg when the control of company fully transferred to the hands of IL&FS  .( IL &FS is promoted by Housing Development Finance Corporation Limited (HDFC) ,Central Bank of India (CBI), Unit Trust of India (UTI),  State Bank of India, Life Insurance Corporation of India, ORIX Corporation - Japan and Abu Dhabi Investment Authority). Due to time overrun for the completion of the said project , as per terms and conditions , company succeeded in re-negotiating the project cost  and this is interpreted as a 'Scam' by a media . I believe , such project cost revisions are  not unusual and there is nothing wrong in it if the terms and conditions are framed in a manner with a provision to do that . Unfortunately , to give the colour of  a 'scam' to this incident ,visuals of Raju( Satyam) shown repeatedly in the said news even though this company is not even owned by him at present but owned by reputed PSU banks and institutions .
                                                                             As you are aware , IL&FS Engineering is currently working on many prestigious projects including India's First smart City (Gujarat International Finance Tec-City (GIFT) .Still this is my first choice from this sector and reiterating a BUY at CMP Rs.84 with a long term view.

 Link - India’s first smart city takes shape in GIFT
 

125 comments :

  1. VP.. on March 30, 2011 you had posted the following:-

    ANDHRA PRADESH PAPER MILLS LTD - Moving into the big league
    The L. N. Bangur Group controlled AP Paper mill sold the entire promoter stake to I P Holding Asia Singapore Pte Ltd, a subsidiary of International Paper Company, USA .It is expected to improve both the share price and financials under the new professional management CMP is Rs.197/-

    What is your view on this stock currently? And what did you make of their results posted couple of days ago?

    ReplyDelete
    Replies
    1. It was an event based update and not a detailed buy recommendation .Stock is currently trading @ Rs.284

      Delete
  2. Thankyou verymuch for the much needed update. I have bought this @114 (2nd day after your recommendation) and will consolidate by buying some more by Monday.

    ReplyDelete
  3. Thanks a lot sir for replying and again strongly buying signal. Now i am relieved and will definately hold for a long term . God bless.

    ReplyDelete
  4. Great news Sir. Hoping it to be multibagger in 5-10 years.

    ReplyDelete
  5. Sir,
    Isn't this a great opportunity to lap up this sub 1000 cr market cap stock with a order book of 10000 crs. and a kind of surrogate play on the Smart City idea of our PM

    ReplyDelete
  6. Sir I think u are now tracking dishtv so please your view upon dishtv and also Philips carbon thanks plz reply

    ReplyDelete
    Replies
    1. Positive on it with a long term view

      Delete
  7. I would like to ask a doubt to this third class media that if this PSU Campany is involved in the scam, then who will be benefited...?

    ReplyDelete
    Replies
    1. In the past also the same media faced some allegations

      https://www.youtube.com/watch?v=CTc5S6-lfwo

      Delete
    2. This Zee TV try to trap Jindal but at the end the media people got trapped. They are WORSE than the UNDERWORLD. It's better not to watch any such visual media.

      Delete
    3. Zeetv ? They known supari reporters

      Delete
  8. MADHU SUDAN ACHARYAApril 25, 2015 at 12:52 PM

    VP Sir,Would you please see, if not track, SOMI CONVEYOR BELT's business prospect and give your view for long term on the stock?

    ReplyDelete
    Replies
    1. Not tracking it and not sure whether there is any strong entry barrier in Somi's business

      Delete
  9. Ur view on TV today n Camson Bio at current level

    ReplyDelete
    Replies
    1. TV Today is decent ,not tracking Camson

      Delete
  10. Hi Sir,

    Thank you for your valuable feedback , We believe in your recommendations . And i think this is a great opportunity to buy the stock 15 % less than the recommended price .

    Also my sincere request and also from all people following your blog , plz come back to your originial form where u were recommending 4-5 stocks per month .

    Plz dont get dis-hearting by a few negative comments . I just following your blog from 4 months only even then it has given me good knowledge abt multi-bagger stock ideas . You recommed stocks when other people buy it at 100% appreciation like wockhardt,caplin point etc etc

    Also if u want you can start a paid service for clients who require more no:of calls per month , as no service is free in this world . QUALITY COMES @ A PRICE .

    do think abt it Sir.

    Thank you,
    Manoj

    ReplyDelete
    Replies
    1. Do own due diligence too before taking any investment decision :)

      Delete
    2. I think, two recommendations per month is more than enough for a solid portfolio over time. Between 80% of us do not have the moolah to invest in each and every stock suggested.

      Delete
  11. Hi Sir,

    Just check Dion Solutions . u Recommended it on July 2014 around .. see the score card chart .... it was given at 84 .. and around DEC 2104 it was 74 .. 22% depreciation.

    Now its 120 i guess.. so nearly 50 % appreciation in less then 12 months .. So in short - term some pain .. but long term all your recommendations rock .

    So just forget the comment who say above negative returns in short term .

    Regards,
    Manoj

    ReplyDelete
  12. So Good Company. Sir I like your blog. I am also writing blog and manytimes get the Idea from you. Its always good to read your blog. Keep it up.

    ReplyDelete
  13. This is a welcome news on IL&FS especially when it is reeling under pressure for the last couple of days

    cheers
    nsriniv

    ReplyDelete
  14. Hi Sir,
    First of all thank you for your updates. I am one of your followers since couple of months. I have gone through almost many of your recommendations and updates. I am really impressed the kinds of information you share with complete transparency.
    Sir, can you please comment about Havells India and Finolex cable. I am monitoring these stocks for almost 3-4 months. Now I wanted to buy shares of it for long term 2-3 years from now.

    Please suggest me

    Looking forward to hear from you soon

    Thank You,

    Vikash

    ReplyDelete
    Replies
    1. Sorry , not strictly tracking both these stocks.

      Delete
  15. Sir,
    Thanks for an update, probably very eagerly awaited by all your followers !
    As you have advised, its an icing on cake as this is available 15% below that price.

    Thanks for wonderful services for small investors and All my best wishes for you and entire value-picks family which has now expanded a lot !

    -Valueseeker.

    ReplyDelete
  16. Dear VP Sir,
    I have bought 250 shares of " IL and FS Investment Managers" (NSE code- IVC) at the average rate of 18.35 Rs per share. I think it is the holding company of IL & FS group and have good dividend record. Please suggest me that I can hold it for good return in long term horizon?
    PANKAJ KUMAR
    PATNA

    ReplyDelete
  17. Sir thank you very much for your transparent and timely update. VP sir I would like to seek your view on
    1. Apl appollo
    2. fortis health
    3. Simmond Marshal

    ReplyDelete
    Replies
    1. Positive on first two , not strictly tracking Simmonds Marshal

      Delete
  18. Sir... can I buy hindustan tin? Sir Plz reply

    ReplyDelete
  19. Good article,Sir pls share your views on wonderla holidays...

    ReplyDelete
    Replies
    1. Positive on Wonderla for long term

      Delete
    2. Promoter increasing stake

      Delete
    3. New park will start work next year

      Delete
  20. Dear VP sir.. your views on Cybertech please ?

    ReplyDelete
  21. What is your view on allied digital services...its been telling that this company will play a big role in smart cities project..?

    ReplyDelete
  22. Can you comment on one of your previous recommendation -
    Jain Irrigation; is good days coming for this company?

    ReplyDelete
  23. Sir,

    What is your view on Rain Industries......?

    Thanking You........

    ReplyDelete
    Replies
    1. Sirji needed your view on 2 of your old recomendations:

      - bilcare
      - capf

      Thanks

      Delete
    2. Opinion on Bilcare shared below the posting of following links as comment

      http://value-picks.blogspot.in/2014/12/mic-electronics-update.html


      http://value-picks.blogspot.in/2014/11/skm-to-come-back-in-bse.html


      One can Hold Capital First

      Delete
  24. Sir what about samkrg piston should we keep adding on dips?

    ReplyDelete
    Replies
    1. Not aware of any negative heppenings in the business of company post recommendation

      Delete
  25. Sir what are your views on Nandan Denims is it safe to buy for long term investment
    Pls advise appreciate your thoughts as always
    Regards
    Anurag

    ReplyDelete
  26. Dear VP sir. today mic electronics announce winning order worth 65 crores.
    hope this is the beginning of new innings for mic electronics.

    ReplyDelete
  27. Another update on MIC order book:
    I think patience will pay more...


    With reference to the earlier letter dated April 20, 2015, MIC Electronics Ltd has now informed BSE that the Consortium consisting of MIC Electronics Ltd, and two other members have received Letter of Award (LOA) from EESL on April 23, 2015 for Cluster-2 Guntur & Cluster-3 Krishna of Andhra Pradesh valued Rs. 60.11 crores.Further, the Company has received export orders from USA for supply of True Color Visible LED Video display Systems valued Rs. 3 Crores and other Indigenous order valued Rs. 1.21 Crores. Total Value of Orders received in this month of April 2015 is about Rs 65 Crores.
    Source : BSE

    ReplyDelete
    Replies
    1. Happy to see things are progressing in the right direction . Keep watching the progress in business rather than price movement in market everyday . If business is moving through the right path , it will be rewarded ultimately irrespecctive of market sentiment amd short term hiccups

      Delete
    2. This what everyone need to do in this fall, check what your company doing, if business is right, then everything is, thinking same, not selling inspire of 10% loss in portfolio.

      Delete
    3. Another positive - the above post indicate that the blog reader are learning to see the way you have been suggesting. Tracking business by reader is a v good sigh.

      Thanks VP for everything :)

      Delete
  28. Can you please comment on GVK power.. Vertex projects added 3.2 crore shares ...
    Thanks.

    ReplyDelete
  29. Dear VP,
    You may start PAID service through which you may recommend more companies.You may continue this service as well with limited number of calls or calls at little intervals (update the free service one week after the paid service).
    If you are not interested in making money through subscription fee, you may use the collected funds (from RICH people who pay to become RICHER) to some charitable activities to POOR.

    ReplyDelete
  30. Can you please share your views on Kres Bio?

    ReplyDelete
    Replies
    1. Shared my positive view on this company more than once

      Delete
  31. Sir,
    Plz share your views on TVS motors as its has came down to 225 from 330+

    ReplyDelete
  32. Hello Sir, How is Venkys at these level, 309 is multi year low, will it be a good bet... thanks

    ReplyDelete
  33. Dear vp sir,at present market situation what is ur on rssoftware?

    ReplyDelete
  34. Sir ur view on Adlabs Entertainment Ltd recently listed now at 135 and ipo price at 190

    ReplyDelete
  35. DEAR VP

    what is your view on jubilant life, brooks lab, natural capsule, claris life

    ReplyDelete
  36. Hi sir
    Pls share your view on Ador welding .

    ReplyDelete
    Replies
    1. Stock already appreciated about 80 % from suggested level. Till revival happening in user industries , it may move range bound.

      Delete
  37. Sir, Your views on "Filatex Fashions".

    ReplyDelete
  38. Hi VP sir, is crude oil price is the only reason for SELAN not performing, your view sir

    ReplyDelete
    Replies
    1. Lower crude price is one major reason and increased floating stock after the selling of sizable quantity by one person from promoter group may also impact pric emovement in short term

      Delete
  39. Pl give your views on control print, ambika cotton and cupid rubbers at current price levels.

    ReplyDelete
    Replies
    1. Control print is not a bad one, not tracking other two cos

      Delete
  40. Dear Sir, would appreciate your views on Arshiya International.
    Regards

    ReplyDelete
  41. Sir, your opinion for ACE (Action Construction Equipment Limited) please.

    Thanks

    ReplyDelete
    Replies
    1. Company is decent one but the overall industry is not out of wood.

      Delete
  42. VP sir plz share your views on Hindustan Tin works and Adani power

    ReplyDelete
  43. Sir please your view upon pennar Ind
    And elecon eng.

    ReplyDelete
  44. Sir

    Please mention your View on NOCIL

    Thanks in advance

    ReplyDelete
    Replies
    1. Performance of NOCIL is slowly improving

      Delete
  45. sir, your views on venus remedies and dai ichi karkar, nilkamal, national feeting and coral lab please.

    also would like to know your views on power sector.. its testing investor's patience.

    ReplyDelete
    Replies
    1. My view on Nilkamal already shared , not tracking others

      Delete
  46. shemaroo was recommonded by you earlier. It has depreciated now. can I add some more or wait?

    ReplyDelete
    Replies
    1. Not aware of any negative specifically to this company's business post suggestion

      Delete
  47. Sir, I know u generally not recommend large cap. However, recent bad result of infy (as per market) and its correction almost 9% - what do u think for infy for long term. Thanks

    ReplyDelete
  48. Dear VP Sir,

    Do you think we can enter into Granules India or Tata Elxsi at current levels after the recent correction ?

    Thanks
    Gopi

    ReplyDelete
    Replies
    1. Granules already appreciated 10 times ( adjusted to stock split) from recommended price . Not suggesting for fresh entry .

      Not tracking Tata Elxsi

      Delete
  49. Hi Sir,
    What's your recommendation on APTECH for long term?

    Thanks,
    Murali

    ReplyDelete
  50. Sir I request your view on associated alcohols & breweries ltd pl

    ReplyDelete
  51. Sir, Granules India results were not spectacular this time. Any suggestions for long term?

    ReplyDelete
    Replies
    1. Company grown a lot in past few years and its base become large. No meaning in expecting same growth in percentage terms from hereon.

      Delete
  52. Hi Sir,

    What is your view on Ajmera Realty ( Current Price 130.00)...They have 2000 cr Land bank.....Is this stock have potential multibagger

    Sameer Mendes

    ReplyDelete
    Replies
    1. Not tracking it. I am not very interested in land bank stories at present situation . We can say we have land worth 2000 or 5000 Cr . But what is the use for the share holders if nobody is coming to buy that . An assets can be kept for ever but minority share holders may not benefit from it , there should be business and cash flow.

      Delete
  53. Dear Sir, would appreciate your views on Arshiya International. It is an Logistic Company. So, kindly let me know about the same VP Sir.

    Thanks & Regards,
    Niraj Agrawal.

    ReplyDelete
    Replies
    1. Company was in deep trouble , now they are trying for a come back.

      Delete
  54. Sir please share your view on aditya birla money

    ReplyDelete
  55. sir ,share your views on VRL logistics..hold or sell

    ReplyDelete
    Replies
    1. Good company , but not cheap at CMP

      Delete
  56. Sir,what are your views about Technocraft industries..could not find any thing in blog..Thankx

    ReplyDelete
  57. Sir please review astramicrowave recent results

    ReplyDelete
    Replies
    1. Not upto expectation. Order book also came down from Rs.1025 Cr to Rs.570 Cr in last two years. Future depends on company's ability to secure new orders .

      Delete
  58. I purchase jain irr on 115.
    After that it start falling and all expert advice to hold n avg.
    But it falling 100 90 80 70 60 now 57.now whats ur view on it hold or sell.

    ReplyDelete
    Replies
    1. Not expecting too much down side from here , but considering various factors nearterm upside seems capped.

      Delete
  59. Hi Sir,

    Please share your views about spicejet, is it the right time to invest ?

    ReplyDelete
  60. Sir - your recommendation on L&T and SBI ?

    ReplyDelete
  61. Dear sir, would u kindly share your thoughts on jp power ventures.

    ReplyDelete
  62. Dear vp sir, I am an old follower of yours but never commented, this is my first comment... I love your posts and feel happy to read them.... I wanted to buy il&fs last eek but could not as in icicidirect stock list could not find this stock as it contained & symbol in the ticker, though this is listed in nse website but even with the script code can't find it either or bse or nse cash buy list in Icici direct

    ReplyDelete

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