Citizens' Issues
LBT impasse in Maharashtra: Traders seek Kamal Nath's intervention

Traders in Maharashtra have kept their shops shut for the third day today in protest against the LBT, while the Confederation of All India Traders has sought immediate intervention by the union minister

Traders from Maharashtra, who are agitating against the state government's local body tax (LBT) has sought immediate intervention by union urban development minister Kamal Nath. While seeking intervention by the minister, Confederation of All India Traders (CAIT), the umbrell organisation of traders, said if the issue is not resolved then they would stage dharna and protests at Jantar Mantar at New Delhi.
While demanding immediate intervention of the Union Urban Development Minister in the matter, CAIT secretary general Praveen Khandelwal said, LBT runs counter to the basic fundamentals of current VAT taxation regime and proposed general sales tax (GST).
"Under the proposed system, the traders will have to keep record of all such entries and will have to file a return with the local self-government of the concerned city. This will lead to extra paper work whereas the traders are already subject to comply with large number of paper formalities under different acts, laws, rules and regulations," he said.
Traders in Maharashtra have kept their shops shut for the third day today in protest against the LBT. Meanwhile a petition from traders to abolish the LBT has received over 6,000 signatures on
"The non-cognizance of the state government on this serious matter, which has disrupted normal life in Maharashtra, has prompted the CAIT to make a call to Finance Minister urging for his immediate intervention," said BC Bhartia, national president of CAIT.
CAIT has also condemned the arrest of its Maharashtra Chapter vice president and president of Federation of Retail Dealers of Maharashtra and other trade leaders on Wednesday at Mumbai.
The LBT will replace the traditional octroi and is an account-based cess collection for every raw material used or imported into the city's limits by all businesses, traders and manufacturers. In the newly introduced local body tax, a lump sum amount has to be paid by traders or manufacturers or owner of goods within the specified period.


Uptrend on Sensex, Nifty still going strong: Wednesday closing report

A close below any previous day’s low will signal a reversal.

All the Asian indices opened in the positive and so did the indices back home. This was on the back of a strong overnight lead from the US and Europe. The Sensex opened at 19,950 while the Nifty opened at 6,064. Yesterday we mentioned that a close below any previous day’s low will signal a reversal. We continue to maintain the stance. The NSE saw volume of 58.51 crore shares which is similar to yesterday.
Except for a short while when the indices traded in the negative for rest of the trading session the benchmark was trading well in the positive and closed in the positive for the third consecutive trading session. The Sensex and the Nifty hit a high low of 19,851 and 6,025 respectively. The benchmark hit a high of 20,037 and 6,084 and closed almost at the day’s high. Sensex closed at 19,990 (101 points up, 0.51%) while the Nifty closed 6,069 (26 points up, 0.43%). 
The broader indices closed in the positive. The BSE Mid-cap index rose 0.47% and the BSE Small-cap index rose 0.47%.
Only 4 of the sectoral indices closed in the positive. The top sectoral indices were BSE FMCG (up 1.43%); BSE Bankex (up 0.11%); BSE Oil & Gas (up 0.11%) and BSE Healthcare (up 0.08%). Among the losers were BSE Capital Goods (down 0.65%); BSE Auto (down 0.46%); BSE Metal (down 0.36%); BSE Power (down 0.31%) and BSE PSU(down 0.14%). 
Fourteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were HDFC (up 3.85%); ITC (up 2.27%); HDFC Bank (up 1.38%); Hindustan Unilever (up 1.23%) and Hindalco Inds (up 0.83%). The key losers were Bharti Airtel (down 1.82%); Hero MotoCorp (down 1.78%); Tata Steel (down 1.45%); Mahindra & Mahindra (down 1.35%) and Jindal Steel (down 1.13%).
The top two A Group gainers on the BSE were— Corporation Bank (up 6.80%) and Bajaj Finance (up 6.19%).
The top two A Group losers on the BSE were— Indian Bank (down 4.26%) and Oracle Financial Services Software (down 3.89%).
The top two B Group gainers on the BSE were— Godfrey Phillips (up 20%) and Venus Remedies (up 19.99%).
The top two B Group losers on the BSE were— NCL Research (down 20%) and Bio Green Papers (down 19.71%).
Of the 50 stocks on the Nifty, 23 ended in the green. The key gainers were HDFC (up 4.75%); ITC (up 2.83%); Lupin (up 2.57%); UltraTech Cement (up 2.51%) and Indusind Bank (up 2.08%). The major losers were Ranbaxy (down 3.08%); Bharti Airtel (down 2.37%); Tata Steel (down 1.76%); Hero MotoCorp (down 1.71%) and Bank of Baroda (down 1.43%).
Back home the parliament was adjourned sine die on Wednesday, two days before scheduled end of the Budget session without passing crucial bills like the Food Security Bill and the Land Acquisition Bill. The session, one of the least productive on record, has been disrupted for two weeks over various issues. 
Meanwhile, the Congress party got majority in Karnataka assembly elections and ousted the BJP to form the government in the state. This will cheer the bulls tomorrow.
Adding to the optimism was the better-than-expected trade performance from China. China posted an $18.16 billion trade surplus in April after reporting an unexpected $884 million deficit in March. Exports rose by 14.7% in April from a year earlier, data from the General Administration of Customs showed today, 8 May 2013. This was faster than March's 10% rise. Imports rose 16.8% from a year earlier compared with a 14.1% rise in March.  
Except for KLSE Composite (fell 0.15%) all the other Asian indices closed in the positive. The highest gainer was Taiwan Weighted which was up 1.27%. The European indices were trading in the green and so were the US Futures. 
The board of directors of Viceroy Hotels at its meeting has approved the proposal to sell the entire 'Chennai Project Division' comprising of 'Chennai Hotel Project’ and "Chennai Residential Project" to M/s. Ceebros Hotels Private Limited, Chennai for a total consideration of Rs480 crores. The stock rose 3.70% to close at Rs 19.60 on the NSE. 
The board of directors of Sundaram Clayton declared a second interim dividend of Rs5 per share (100%) for the year ended March 31, 2013. The board earlier declared the first interim dividend of Rs9 (180%) per share for the year 2012-13 and the same was paid on February 19, 2013. The stock rose 1.10% to close at Rs 338.55 on the NSE


Vinati Organics net sales up by 20% but operating profit is up only 4%

The company has delivered on the sales front but saw weak operating profit and benign net profit growth

The net sales of Vinati Organics increased 20% for the quarter ended March 2013 over the same period last year. For the same quarter, operating profit grew 4% y-o-y to Rs37.46, after a particularly dismal third quarter. However, Vinati reported Rs21.46 crore net profit for the quarter ended March 2013 when compared to the Rs20.27 crore for the corresponding period last year.

Vinati Organics has put on a string of consistent showing on the sales front but has disappointed the previous and current quarters when it comes to operating profit. Net sales grew at 20% y-o-y which is inline with the company’s three-quarter y-o-y average growth rate of 22%. The company’s return on networth and return on capital employed are impressive at 24% and 35% respectively. Despite this the market has valued the company cheaply, with market capitalisation quoting at just over three times operating profit.

A closer look into the company’s shareholding pattern reveals that promoters hold 74.99% of the total shares outstanding. Institutions hold 2.37%, while the Indian public holds 22.64%, of the shares outstanding.

The board of directors of the company has recommended a dividend of 125% on the share capital of the Company, or Rs2.50 per equity share of face value of Rs2 each for the year ended 31 March 2013.

Vinati Organics is a specialty chemical company producing organic intermediates, monomers and polymers.

The stock is part of the Kensource Stockletter picks. For more information on Kensource
Stockletters, please check out this link.



Ramesh Poapt

3 years ago

Good report!seems a pick ,and notlike 'anylists(malafide)choice'.
ML had rightly reported about Venus Remedies and few other good buys.Pl continue such ideas..

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