Yatish's Buy Calls Short/Medium & Long

[pawasthi.investor]

Kohinoor Broadcasting

Introduction: Kohinoor Broadcasting Corporation Ltd was incorporated by a group of professionals with Mr. Harjinder Singh and Mr. Mangal Singh as key promoters of the Company since its incorporation on 11 October 1994. During 2003 the Board decided to establish facilities for production of advertisements, TV programmes music programmes and certain other entertainment related activities. The Company is currently engaged in the media and entertainment industry with a particular focus on the TV sector or Visual Media

The Company has diversified in the production of TV programmes including current affairs, music, serialised drama and other entertainment programmes.The Company has got approval from Ministry of Broadcasting for setting up earth station for up-linking the television channels. The Company is setting up earth station and news studios at Rajpura and remote studios in India at Delhi, Mumbai, Calcutta, Chennai and Jammu and outside India at Dubai and London. In this regard, the designs have been finalised and the equipment has been brought. The consultants have been appointed and they are sourcing the space at the locations.

The Company shall also set up fifteen mobile studios for better coverage of the events, which would be moving from one part to another. It is proposed that each region shall have three mobile studios to cover on the spot.

Besides, the Company would have six mini vans cum mobile studio to cover offices of the Chief Ministers of Punjab, Haryana, Himachal, Jammu & Kashmir and Delhi in the first stage. The equipments have been identified. The orders shall be placed in due course. The supply period is three months.

Shareholding Pattern: The promoter holding is at present very less and is more or less managed by the Board of Directors like may other established companies, who are doing well. But due to the high prospects of the company going forward, the promoters are proposing to increase their stake through private placements. The company has already informed about its desire to offer, issue and allot up to 100,000,000 Equity Shares of Rs 10/- each on private placement basis in one or more trenches to person resident outside India, by way of Global Depository Receipts/American Depository Receipts or Foreign Currency Convertible Bonds on such terms and conditions as may be fixed by the Directors of the Company, subject to necessary provisions & approvals. This is a very positive news on the company, since if a company did not have fundamentals then it shoud not have gone for GDRs.

Financials: The company came out with excellent consolidated results (the results including its overseas subsidiaries in Dubai and UK) for the December, 2007 quarter (Q3FY08). Though the total income of the Company in Q3FY08, remained flat to Rs.52.05 lakhs against Rs.59.62 Cr in the same period previous year, but PBDT (Profit before tax and depreciation) jumped to Rs.6.02 Cr as against Rs.1.09 Cr in the same period previous year. For the nine months ended 31st December, 2008, the PBDT came out to be Rs.12.40 Cr as against Rs.3.04 Cr in the same period previous year.
For the Q3FY08, the Net Profits of the company zoomed to Rs.5.46 Cr against Rs.76 lakhs in the same period previous year. The EPS for the Q3FY08 is Rs.6.21 against Rs.2.33 in Q3FY07. This is remarkable considering that the company had an EPS of only Rs.2.22 in FY07.

Triggers:

1. The company has received the equipment for Teleport to be set up at Rajpura involving a capital outlay of Rs.5 Cr.

2. The company has placed the orders for play-out station to be set up at Rajpura involving a capital outlay of Rs.10 Cr.

3. The company is in the process of making large scale recruitments of manpower approx. 60 people for the production of content for its entertainment channel.

4. The company has started producing buffer content for its forthcoming News and Entertainment Channels.

5. The Company is coming up with 4 (four) New Channels which are as follows:

a) KBC News--The popular Hindi New Channel

b)KBC Plus---The popular Entertainment Channel

c)KBC Gold--The popular Hindi/English/Regional Movie Channel and

v) KBC Profit--The popular Business Channel like NDTV Profit.

6.The company in principle has taken over M/S Tagore Theatres Ltd, a multiplex valued at Rs.100 Cr. The company has appointed reputed agencies to decide the Swap ratio for the proposed take over.

7. The company is opening new subsidiaries in Japan, Singapore and the USA. The top company's officials were in the USA last month to finalise a deal there.

8. The Company is likely to benefit from the DTH and CAS, which is bringing a revolution in the media sector as a whole.

9. The promoters of the company are expected to increase their stake in the company through a private placement, if the sources are to be believed. The company has already announced that it will be conducting an EGM on 4 th March, 2008, to offer, issue and allot up to 100,000,000 Equity Shares of Rs 10/- each on private placement basis in one or more trenches to person resident outside India, by way of Global Depository Receipts/American Depository Receipts or Foreign Currency Convertible Bonds on such terms and conditions as may be fixed by the Directors of the Company, subject to necessary provisions & approvals.

10. The Company proposes to invest an aggregate sum not exceeding Rs 200 Crores, in the equity shares of the Wholly Owned Subsidiaries (WOS) of the Company viz. Kohinoor Broadcasting Corporation FZE and other subsidiaries to be incorporated world wide notwithstanding that Such investment together with the investment in all other bodies corporate may exceed 60% of the paid up capital and free reserves or 100% of its free reserves whichever is more, subject to necessary provisions & approvals. HENCE THE MEETING OF 4TH MARCH, 2008 IS VERY IMPORTANT.

Conclusion: Considering all the points mentioned above including the last quarter EPS of Rs.6.21, it has been found that the scrip of Kohinoor Broadcasting Corporation Ltd is highly undervalued and could purchased at the CMP of Rs.8.98 for a target of Rs.70-Rs.80 in 12 to 18 months time frame. But if the company is able to lauch its new Channels a little early than the proposed dates and is able to open its overseas subsidiaries within a short time, then the scrip could cross Rs.100--Rs.120 in the stipulated time. This is a hidden gem in the media sector and a turnaround case like Ispat Industries Ltd



P.S. I have copied all the above information from BVRAO's blog, all credit goes to him.

 

[yatishjain]

its listed on bse... sadly i was not able to select it on my icicidirect account..... but how good is the stock... you have brought 8000... seems you are pretty confident on this stock..... plus i have heart broadcasting stock would rise this year....

but if you could advise some more about Kohinoor Broadcasting..... i was suggested krishna lifestyle and got 1000 share of it @ 2.84 but over a month now, its stagnant..... any advise on it....

i am new to trading and getting used to it.....

thanks yatish

The company is going to acquire Tagore Theatres at valuation of Rs 100 crore, reports CNBC-TV18.

 

[yatishjain]

Accumulate Hind Oil tgt 150

 

[yatishjain]

Ranbaxy, CMP- Rs. 416, Target - Rs. 460, short term

 

[yatishjain]

Anil Ambani’s Reliance Capital, one of the country’s biggest finance companies, has been allowed to trade in bad loans. On Tuesday, the company received the RBI approval that will enable its asset reconstruction firm to buy stressed assets from the Indian financial system. The system is estimated to have Rs 1,65,000 crore worth of stressed assets with an annual accumulation of nearly Rs 20,000 crore.

 

[yatishjain]

Oil company Reliance Industries is planning to export low sulphur diesel to Europe once its new refinery at Jamnagar comes on stream later this year.

 

[yatishjain]

BEML has signed several pacts with different companies to manufacture defence equipment in India.

"We have signed an agreement with General Dynamic of Canada for making armoured patrol vehicles for the Indian army. Besides that, we have extended our agreement with Tatra Sipox of the UK for technology transfer, production and marketing of mining tippers at our Mysore factory," BEML CMD VRS Natarajan said today at the Defence Expo.

He said the company has also signed an agreement with UK-based WFEL for making dry support bridges for the India army.

Natarajan said all these orders were valued at over Rs 300 crore each, 30 per cent of which would come to BEML, according to the offset clause for defence equipment purchase in India.

Natarajan said BEML was expanding its rail coach business and was hoping to bag some big orders in the coming years.

"We are one of the two bidders who have qualified in the technical tender for supplying coaches for the Mumbai metro rail project. I am confident of bagging this order," he said.

The company is also eyeing business from rail projects in Hyderabad, Kolkata, Kochi and Bangalore.

"I believe very soon every city in India that has a population of over 3 million will have metro rail-link. That is the trend India is moving towards," he said.

The road infrastructure in the country has failed to keep up with the growing population in the cities, leading to massive traffic congestions.

The metro rail is being seen as a viable substitute for road transport, not just because it takes the load off roads, but also because they are more environment friendly. BEML is seeking a joint venture with a German company for making rail coaches.

 

[yatishjain]

Textile major Bombay Dyeing on Tuesday said that it plans to invest Rs 60 crore over the next 2-3 years to open 100 company-managed stores, besides a foray into the UAE, a top company official said.

"We plan to open 100 company-managed showrooms over the next 2-3 years at an investment of Rs 40 crore, besides 15-20 franchisee shops per year," Bombay Dyeing's Executive Director S K Gupta told reporters after launching the company's first Concept store here today.

The company will be spending another Rs 20 crore for the refurbishing of existing stores, Gupta said.

"The concept store will be a trend setter in the fast- changing retail industry and will mark a significant development in the evolution of the Bombay Dyeing brand," Bombay Dyeing's Joint Managing Director, Ness Wadia said

The new bed and bath Concept store launch marks a significant step in the company's overall retail expansion plans, providing an entirely new bed and bath shopping experience with over 500 designs, bed and bath merchandise and a variety of collection to choose from.

The company is also planning to extend its network to neighbouring countries beginning with the UAE in the near future, Gupta added.

 

[yatishjain]

Engineering giant Larsen and Toubro on Tuesday signed a contract worth $431 million as part of an upgrade of two of Kuwait's three refineries for environment-friendly products, an executive said.

The 22 hydrocrackers and desulphurisation reactors being sold will be used by Kuwait National Petroleum Co in a multi-billion-dollar clean fuel project.

"This is the largest ever order placed with a single manufacturer in the world for such critical reactors," L and T senior executive vice president M V Kotwal told a press conference.

Delivery by the Mumbai-based company will be made between May and November 2010, Kotwal said.

KNPC has embarked on a project to upgrade its refineries in Al-Ahmadi and Mina Abdullah at a cost expected to reach about USD five billion. The project is slated for completion in 2011.

The company also plans to build a new 615,000 barrels per day (bpd) refinery at a cost of close to USD 14.5 billion. It is slated to come onstream by 2012.

This will raise Kuwait's refining capacity from the current 930,000 bpd to around 1.4 million bpd. When the projects are completed, KNPC plans to shut down a refinery at Shuaiba.


I reccomend a buy on L & T at CMP

 

[yatishjain]

Reliance Industries is in advanced talks with the New York-based Vornado Realty Trust, one of the world’s top five real estate asset managers, to float a $1-billion plus fund. The proposed fund will acquire and manage properties, mainly in the retail space, across India. People familiar with the development said RIL and the New York Stock Exchange-listed real estate investment trust (REIT) were discussing the possibility of an equal joint venture.

Vornado, which has a market capitalisation of nearly $14 billion, owns and manages over 116 million sq ft of realty assets in the US with significant concentration in New York and Washington districts. The sources said while no definitive agreement is in place yet, both parties have made substantial progress in negotiations. RIL spokesperson declined to comment on the development.

It is believed that the joint venture is likely to manage real estate for RIL’s rapidly-expanding retail arm Reliance Retail (RRL). The group could also consider taking realty assets off the balance sheet of RRL and its subsidiaries and park it under the management of the proposed joint venture. However, the likelihood of such a move could not be verified.

Reliance has been on the lookout for partnering a real estate manager for developing an asset base, primarily for expanding its retail play. It has been in talks with several international players, including Taubman Centre, another US-based player. However, the group has now adopted a more pragmatic approach of forming joint ventures to capitalise on the domain expertise or brand power that an international partner could bring in certain sectors.