Investment Tips
Investment Tips
Investment Tips
Page
38
Issue No: 13
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will be important.
Nifty Future (8261) :- On upward movement, beyond 8238 it may go up to 8300, 8338 and
8380. On downward movement, below 8219 it may go down to 8176 and 8120.
Bank Nifty :- It may be in support zone between 18060 and 18110. Beyond 18170 it may go up
to 18360, 18425, 18670, 18060, 17962 and 17740.
BATA :- Beyond 1050 buy with stop-loss at 1041. On upward movement, beyond 1070 it may
go up to 1110.
Axis Bank :- Monday working will be important. Buy when it crosses 557 with stop-loss at 553.
On upward movement, beyond 576 it may go up to 590.
Aurobindo Pharma :- Hold buying with stop-loss at 1310. On upward movement, beyond 1340
it may go up to 1378 and 1409. Keep an eye on working on May 20.
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Jatin Sanghavi
Market Scan
(Mumbai)
(M) 098205 26455
jatinsanghavi100@yahoo.com
Just as was the case in the previous week, both the indices made a dash towards the neckline
(of the Bearish Head and Shoulders) on Monday; and fell on Tuesday making a big bearish candle
in line with the downtrend. This was the second time the indices went to kiss the neck-line and
made a lower top (Sensex 27544 and Nifty 8332). This is way of confirming the bearish pattern
breakout and it has been done twice. As things stand now the zone between Sensex 2754427603 and 8300-8355 will act as immediate Resistance zone.
Technically Speaking :- Sensex opened the week at 27249, made a high of 27544, low of
26750 and closed the week at 27324. Thus it closed the week with a gain of 219 points. At the
same time the Nifty opened the week at 8243, made a high of 8332, low of 8089 and closed the
week at 8262. Thus the Nifty closed the week with a gain of 71 points.
On the daily charts, both the indices have formed a small white body candle on Friday, which
seems to be a part of the Falling Three Methods as the small bodies of last three days are within
the trading range of the Tuesday's big black body candle. The pattern will get complete if a big
black body candle forms on Monday. On the weekly charts, once again a white body Spinning Top
has been completed which is a neutral formation. Thus last weeks Homing Pigeon required a
confirmation in the form of a real white body candle which did not happen this week, as a result the
Homing Pigeon could not get confirmed. Thus daily as well as weekly candlestick patterns point
towards further consolidation with a bearish bias.
Currently the market is witnessing a pull-back of the immediate fall from Sensex 29094 to
26423 and Nifty from 8844 to 7997 and the relevant pull-back levels are placed at Sensex 2744427759-28074 and Nifty 8320-8420-8521.
In last two weeks, the indices have twice tested the neckline of H&S pattern and retraced from
there. In the process two lower tops have been registered (Sensex 27544 as compared to 27603
S3
7961
26469
S2
8065
26776
S1
8167
27051
Close
8262
27324
Name
TCS
ACC
JSW St.
Havells
REC
CMP
2511
1472
876
271
295
SL
2565
1503
903
277
301
TGT-1 TGT-2
2430 2347
1426 1379
835
793
261
250
285
274
R2
8470
28044
R3
8574
28384
R1
8355
27703
Sell
Sell
Sell
Sell
Sell
Stocks
Grasim
TCS
M&M
IGL
PFC
Reco.Price
TGT Reached Lot Size
3493 3383 3456 125
2527 2460 2480 125
1180 1144 1170 250
398 383 395 1000
256 248 252 1000
Total
Profit
4625
5875
2500
3000
4000
20,000
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and Nifty 8332 as compared to 8355); which are now coinciding with the 200dma (Sensex - 27588
and Nifty - 8300) along with 38.2% Retracement level i.e. Sensex 27444-27603 and Nifty 83008355 will act as resistance zone going forward.
This week both the indices managed to stay below the important long term average of 200dma
(Sensex - 27588 and Nifty - 8300), medium term average of 50dma (Sensex - 28100 and Nifty 8521) as well as the short term average of 20dma (Sensex - 27369 and Nifty - 8283). Thus the
trend in the short term, medium term and also the long term timeframe continues to remain down.
Both the indices are progressing towards target of Bearish Rising Wedge pattern which falls at
26049 for the Sensex and 7882 for the Nifty. Besides this, both the Sensex and Nifty had also
completed an Ascending Broadening pattern and the target for that pattern is at Sensex 25034
and Nifty 7533. Coupled with this, both the indices have also completed a Head and Shoulders
pattern and the target as per this pattern is at Sensex 24486 and Nifty 7425.
MACD has signaled a buy this week whereas Price ROC is negative and continues with its Sell
signal. RSI (46) has moved higher but still suggests bearish momentum. Stochastic Oscillator %K
(56) is above %D, thereby continuing with its Buy signal. MFI (54) has just gone above the equilibrium line suggesting positive money flow. OBV continues to make lower top lower bottom formation. ADX has increased to 25, suggesting that the current downtrend is gaining strength. Directional Indicators continue with its Sell signal as +DI remains below -DI. Thus Oscillators are giving
mixed signals thus suggesting consolidation with a bearish bias.
Options data indicates highest Call Open Interest buildup at the strike of 8500 and highest Put
build-up is at the strike of 8000. Thus Option data suggests a wide trading range with support
coming in at 8000 and resistance around 8500.
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Terrific Shots
SML Isuzu (Rs. 1170.00) (Code: 505192) :- The commercial manufacturer company
was incubated in 1983 as Swaraj Mazda and it was named as SML Isuzu in 2011. Sunimoto holds
44% and Isuzu Motors Japan hold 15% holding. It is considered pioneer in complete buses, ambulance and customized vehicles. The company inked a pact with SBI for vehicle finance across
the nation. It has obtained A-1+ rating from ICRA for short term borrowing. For some time the FIIs
are very bullish in this stock, increasing their stake from 0.25% in last quarter to 0.77% in this
quarter. The company recorded net profit of Rs12.77 crore on turnover of Rs321.54 crore thus
achieving EPS of Rs35.19 on equity of Rs14.48 crore. It may give handsome return in short term.
Bharat Forge (Rs. 1271.00) (Code: 500493) :- The Kalyani Group's stock has been
marching ahead uninterrupted. The stock prices went up to Rs1362.9 and down to Rs435 during
the year. Majority of the fund managers and FIIs are bullish in this stock. It manufactures automobile, power, oil and gas, rail, marine, aerospace, construction and mining sector products. It has its
plants in India, China and Europe. The company is ranked in the four largest forging companies of
the world with capacity of 7 crore TPA. In December quarter the company's income increased
from Rs857 crore to Rs1217 crore, while profit increased from Rs94 crore to Rs196.34 crore with
EPS of Rs8.43. It may cross Rs1500 level in coming days.
Sintex Ind (Rs. 109.00) (Code: 502742) :- The 'B' group company with face value of
Rs1 a share has witness 52 week high at Rs136.40 and a low at Rs59. In FY2015, the company's
income increased from Rs5864.47 crore to Rs7034.77 crore while profit increased from Rs364.70
crore to Rs528.81 crore with EPS of Rs14.43. The stock is being quoted at PE of 7.55. It is also
being traded at much below rate compared to its all-time high rate of Rs308. The company has
declared 70% dividend. It has witnessed record sales and profit in FY2015. The company has
gained a lot on export front. The stock can give good returns in long term.
:- The biggest auto ancillary company supplies component modules and systems to automobiles sector. Its product portfolio includes encopresis electrical distribution system, polymer product and complete module system. It
has its presence in 25 countries with 124 plants. The company enjoys investor friendly status with
paying regular dividends. In FY 2015, the company's sales increased from Rs30721.01 crore to
Rs35031.89 crore, while profit increased from Rs764.97 crore to Rs862.47 crore. The stock is
being quoted at PE of 50. Based on the strong financial results the stock is achieving newer
heights and it may continue its strong performance on the bourse in coming days as well.
Buy... Buy...
Bank of Mah.
41.00
The Byke
166.00
A.B. Nuvo
Magma Fincorp.
93.00
INOX Wind
468.00
BPCL
Subros
60.00
Sharda Crop.
343.00
Ajanta Phamra
Mirc Electronics
16.00
Bharti Infra
409.00
NCC
96.00
Orient Cement
Kokuyo Camlin
92.00
Gabriel India
80.00
ADF Foods
70.00
Marg Ltd.
11.00
Sell on High
Hold
Buy on Dips
1842.00
ABG Shipyard
178.00
765.00
Tata Power
1294.00
Dena Bank
51.00
Dr. Reddy
3491.00
JSW Steel
875.00
175.00
EMAMI
1029.00
HEG Ltd.
208.00
D-Link
215.00
Mahindra Life
Indian Bank
159.00
Talwalkars
340.00
Gillette
NTPC
136.00
Man Ind.
70.00
Grasim Ind.
465.00
43.00
72.00
3553.00
IOC
336.00
11874.00
DLF
124.00
Union Bank
164.00
Shree Cement
Oriental Bank
211.00
NBCC
772.00
IDEA Cellular
173.00
Zydus Wellness
971.00
Vedanta
210.00
Just Dial
1070.00
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Chart Buster
By Talaksi Gosar
(Mumbai)
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All these negative factors including the spoiled market sentiments were fully reflected when the
markets fell by 630 points on Tuesday and therefore, they once again rallied by 374 points on
Wednesday. On Thursday a small decline of 45 points was registered in volatite trading but the
last day of trading brought a relief when the Sensex rose by 118 points.
Thus it turned out to be a second consecutive week in which the Sensex has gained. In the
meantime, the consumer price inflation eased to a four-month low of 4.87 per cent in April on
slower annual increase in food costs, government data showed on Tuesday after market hours.
The IIP numbers also showed decline thus raising hope of an interest rate cut by the Reserve
Bank of India on June 2, when it comes out with a fresh monetary policy. A few optimists also hope
that the banking regulator might come out with interest rate cut even before the pre-scheduled bimonthly review meeting. Meanwhile car sales rose by 18.14 per cent in April, the fastest rate of
growth in 30 months as the auto industry continued its journey on the road to recovery riding on
improved consumer sentiments, new models and favourable fuel prices. The Moody's rating agency
said India growth story remains intact as it will grow at a strong pace of 7.5 per cent in financial
year 2015-16-the highest among G20 nations helped by reforms drive and lower oil prices.
Thus the markets have already fully discounted whatever negative factors and have readied for
a fresh upmove. The FIIs are also expected to stop selling unabtedly as on one hand prices of
shares have gone down too low and on the other hand, their problem of MAT is being resolved as
the finance minister has already appointed a committee to look into the matter and when the
Government appoints such committee, it necessarily means that the outcome would be in favour
of the FIIs. The meteorology department has forecast that the Monsoon this year is going to
commence in time and would be satisfactory. It said that the Monsoon is expected to hit Kerala
coast by 30th May. This coupled with a likely rate cut in June 2 meeting of the RBI is sure to make
the markets go up and inspire shrewd long-term investors to mop up investment worthy scrips
from the new week onwards. So, it is likely to be a positive trend in the next week and therefore,
investors are suggested to adopt a buy and hold strategy if they wish to make sure and handsome
gains out of the markets.
State Bank of India :- State Bank of India's Re one paid up share had fallen to a low
of Rs 145.60 (adjusted on ex-split basis) in Mid-February, 2014, and then entered a bullish trend
to have risen up to a high of Rs 335.90 by January 28, 2015. After having risen so swiftly, the
share attracted selling and gradually slid to a low of Rs 255.25 by March 25. Since the share being
primarily bullish it attracted value buying at beaten down prices and started going up once again
on hopes of a interest rate-cut if not earlier then latest by June 2, when the Reserve Bank of India's
board of governors is scheduled to review monetary policy. The rate cut hope sent the share of
State Bank of India up to a high of Rs 288.10 on Friday before closing at Rs 287.35. The Reserve
Bank of India is expected to come out with a rate cut this time as the inflation rate at both levels,
retail and wholesale, has come down and the IIP numbers have declined, both being pre-requistite
for a rate cut decision by the banking regulator. Since State Bank of India is the biggest bank, it
would be the biggest beneficiary of a rate cut and therefore suggested to be picked up for medium
to long-term investing.
Indian Metals :- Indian Metals is a company engaged mainly in mining and metals and
doing well on financial front. The Rs 10 paid up share of Indian Metals had fallen to a low of Rs
137.60 in Auguist-September, 2013, when the markets also reached their final bottoms before
entering the latest unprecedented stock market boom. After having joined the general uptrend in
the markets, the share rose upto a high of Rs 260 by September 6, but failed to keep pace with the
market and instead faced selling pressure that kept it under check for a long time. The failure in
keeping pace with the markets, was transalated into a bearish phase in the scrip as a result of
which it once again resorted to a down trend and reached a low of Rs 144.10, a level that was just
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close to the previous low of Rs 137.60 and thereby a double bottom pattern was formed on its
daily chart. The double bottom pattern in Indian metals worked wonders as the share then jumped
up and reached a high of Rs 269 in just 10 trading sessions. Such a swift and massive jump
attracted selling and pushed it down to a low of Rs 177.20 by Wednesday of the last week but it
basically being a bullish stock in technical terms, once again started rising and reached a high of
Rs 201.70 and closed there in a buying freeze. The share has thus indicated a possibility of going
further up and therefore recommended for buying for short-term trading gains.
Nilkamal Ltd :-
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Stock Wave
www.chartsanketstock.com
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Dilip Davda
e-mail
dilip_davda@rediffmail.com
10
Best Buy
Experts Eye
Relaxo Footwears
Camlin Fine
Motherson Sumi
It was a roller coaster week that finally managed to close in green. Positive trends were
largely attributed to rising hope for rate cut as CPI and WPI has eased and Rupee too firmed
up a bit and gave a sigh of relief. With both end movements high volatile trades took place that
tested higher lower bottom for the week. Although global worry continued, market is pinning
hope for speedy action for reforms as India has lost its most preferred destination and
underperformed amongst Asian markets. IIP remained negative and inflation eased that boosted
belief for rate cut from RBI in its June first week meet.
In the high volatile week BSE Sensex and NSE Nifty moved in the range of 27544.2426750.01 and 8332.75-8089.80 respectively.
Secondary Market :- With higher opening on Monday markets maintained gaining momentum for the first session of the week. BSE Sensex scored 401.91 points to end the day at
27507.30 and NSE Nifty gained 133.75 points to close at 8325.25. FII turning net buyers
helped market to score with surge in Metal, Pharma, Auto, Banking heavy weights counters
coupled with rate cut by China Bank reports and likely postponement of rate hike by US Federal Bank. Relaxo announcing 1 for 1 bonus with 100% dividend boosted it to mark upper
circuit. Sri Amarnath Fin got listed on BSE. Rasi Electrode turned ex-split (5 for 1). Relaxo
Footwear and SRS both announced liberal bonus in the ratio of 1 share for every 1 share held.
With divergent opening on Tuesday market nosedived post noon as the day progressed
and indices lost heavily. BSE Sensex lost 629.82 points to close at 26877.48 and NSE Nifty
mirrored similar trends with a deficit of 198.30 points to end the day at 8126.95. Rupee turning
week to market Rs. 64.20 a dollar punctured the sentiment and all out selling took place
amidst global concerns over Greece issue and uncertainty at domestic front over important bill
passage. Surge in Crude Oil prices added fuel to the fire. Metal, Banking, Auto, Capital Goods,
counters lead the doom. Mid and Small cap too lost the charm with heavy sellouts. FIIs net
buying status failed to charm the market.
On Wednesday markets opened higher with a gap and gained on short coverings. BSE
Sensex marked gain of 373.62 points to end the day at 27251.10 and NSE Nifty scored 108.50
points to close at 8235.45. Short coverings in fancy counters of Capital Goods, Auto and
Banking lead the rally and got support from select Mid and
Small cap counters. Market breadth turned positive. In last
three sessions, we marked roller coaster ride for indices.
Crescent Leasing got listed on BSE.
Bonus Announcement
With divergent opening on Thursday amidst volatile
Relaxo Footwear (1 : 1) trades, indices finally closed in red. BSE Sensex lost 45.04
points to close at 27206.06 and NSE Nifty marked deficit of
SRS (1 : 1)
mere 11.25 points to end the day at 8224.20. India emerged
Shivam Auto has convened as the under performer among BRICs countries. Auto
board meeting on 18.05.15 to counters surge failed against doom in IT counters and thus
market closed in red. However, Mid and Small cap counters
consider bonus issue.
Ex - Split
Rasi Electrode (5 for 1)
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11
marked value buying from bulls even when FII remained net sellers. Banking counters marked
PSU v/s Private sector bank game of punters. UFO Moviez got listed on BSE and NSE and
closed at a discount of 4% plus and raised concern for primary market.
On Friday markets opened in green and week trader's short covering helped it to end the
day as well as the week in green. BSE Sensex gained 117.94 points to end the day at 27324.00
and NSE Nifty scored 38.15 points to close at 8262.35. Auto counters commanded rally and
got support from FMCG sector fancy scrip as IMD forecasted early rains. Metal and Mining
counters remained weak on profit bookings at every rise. Positive corporate reports boosted
counters like Take Solutions, KNR Constructions, Cadila Health, Nectar Life, Grindwell, Dhunseri
Petro, Stride Arco etc and negative trends dampen counters like HDIL, Zydus Wellness, HEG,
Apar Ind, Tata Steel etc. Index heavyweights gaining momentum helped indices to close in
green.
With high volatile trades during the week, indices marked net weekly GAIN of 218.61 and
70.85 points in Sensex and Nifty respectively.
Rupee moved around of Rs. 64. a dollar, and Crude Oil remained volatile amidst Greece
crisis. Failure of Land Acquisition Bill, GST passages dampen the sentiment and India lost
most preferred destination amongst BRICs countries and remained underperformer. Now unless speedy actions on reforms are not shaping out, market is not likely go gain momentum.
Well it marked green pasture only on two counters i.e. IMD's forecast of early monsoon and
rising hope for rate cut by RBI as CPI and WPI inflation cooled down.
Under the given scenario, BSE Sensex may move in the range of 28100-26200 and NSE
Nifty between 8450-7800.
Shivam Auto has convened board meeting on 18.05.15 to consider bonus issue.
Scrip Watch :- Keep a watch on the following scrip that may be considered for medium to
long term investments.
Relaxo Footwears (BSE Code 530517) :- This footwear and related product company has
posted net profit of Rs. 103.04 crore on a turnover of Rs. 1480.81 crore for the fiscal 2014-15
against net profit of Rs. 65.64 crore on a turnover of Rs. 1212.27 crore for corresponding
previous year. It has announced a dividend of 100% and also surprised stakeholders with a
bonus in the ratio of 1 for 1. As on 31.03.15, equity capital of Rs. 6.00 crore is supported by
free reserves of Rs. 361 crore plus. Scrip is worth considering at declined level for medium to
long term on cum-dividend/cum-bonus basis. It currently quotes around Rs. 805.75 against 52
week High/Low of Rs. 869/340, FV Re. 1.
Camlin Fine (BSE Code 532834) :- This fine chemical manufacturing company expanding
globally has (on a consolidated basis) posted net profit of Rs. 55.03 crore on a turnover of Rs.
558.27 crore for the fiscal ended on 31.03.15 against net profit of Rs. 28.71 crore on a turnover
of Rs. 508.67 crore for corresponding previous fiscal. It has announced a dividend of 45%. As
on 31.03.15, equity capital of Rs. 9.59 crore is supported by free reserves of Rs. 125 crore
plus. Scrip is worth considering at declined level for long term. It currently quotes around Rs.
94.90 against 52 week High/Low of Rs. 105/25, FV Re. 1.
Motherson Sumi (BSE Code 517334) :- This automotive sector company has (on consolidated basis) posted net profit of Rs. 862.47 crore on a turnover of Rs. 35031.89 crore for the
fiscal 2014-15 against net profit of Rs. 764.97 crore on a turnover of Rs. 30721.01 crore for
corresponding previous year. It has announced a dividend of Rs. 3 per share. As on 31.03.15,
equity capital of Rs. 88.19 crore is supported by free reserves of Rs. 3226 crore plus. Scrip is
worth considering at declined level for medium term investment. It currently quotes around Rs.
495.55 against 52 week High/Low of Rs. 534/257, FV Re. 1.
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12
DISCLAIMER : No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter
published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here.
Any reader taking decisions based on any information published here does so entirely at own risk.
Author has no holdings or plans to invest in any scrip referred in this article.
(Email: dilip_davda@rediffmail.com )
Dividend Announcements
ADC India (10%), APL Apollo (60%), Atul Auto (50%), Avanti Feeds (275%), BSL
(12%), Bank of Baroda (160%), Capital Trust (10%), Capri Global (15%), Ceejay Fin
(14%), Chokshi Imaging (5%), Deep Ind (10%), Elegant Marbles (20%), Eveready Ind
(40%), Havells India (300%), Jai Corp (50%), Kansai Nerolac (140%), Modern India (6%),
Nitta Gelatin (10%), OCL India (200%), Orient Paper (10%), Peninsula Land (15%),
Polychem (25%), Relaxo Footwears (100%), Rolcon Engg (15%), Sahyadri Ind (15%),
Simplex Realty (10%), Siyaram Silk (100%), Syndicate Bank (47%), Tips Ind (10%), TFCI
(8%), Unichem Lab (100%), Vardhman Text (100%), WH Brady (10%), Yuken India (15%),
Apollo Tyres (200%), Ashok Alco (10%), Ashok Leyland (45%), Automobile Corp of Goa
(125%), Bombay Cycle (40%), Camlin Fine (45%), Central Bank of India (5%), CARE
(80%), Dr Reddy's Lab (400%), Electrosteel Cast (65%), Finolex Cables (90%), Florence
Invest (15%), Ingersoll-Rand (30%), Jubilant Life (300%), La Opala (65%), Ludlow Jute
(5%), Maharashtra Scooter (300%), Mayur Uniq (16%), Motherson Sumi (300%), PTL
Enterprise (50%), Punjab & Sind Bank (6%), Poddar Develop (15%), Sobha Ltd (70%),
TV Today (30%), Torrent Power (15%), Tai Ind (7%), TBZ (10%), Uco Bank (20%), Union
Bank (60%), Vas Infra (7%), Vijaya Bank (15%), Aarti Ind (35%), Adani Enter (140%),
Aditya Birla Chem (50%), Advani Hotels (6%), Amrit Corp (50%), Ashoka Buildcon (14%),
Automotive Axles (10%), Capital First (22%), Dalmia Bharat (75%), Deepak Nitrite (50%),
Emami (300%), Jayant Agro (20%), Lupin (375%), Nilkamal (45%), SIL Invest (12.5%),
Salzer Electro (15%), Smartlink Network (100%), Suraj Ltd (15%), TT Ltd (10%), Tasty
Bite (10%), Umang Dairies (20%), Aditya Birla Nuvo (70%), Apar Ind (35%), Arvind Ltd
(25.5%), Balkrishna Ind (120%), Bank of Maharashtra (8%), Blue Star Info (40%), DB
Corp (42.5%), Dhunseri Petro (40%), Glance Fin (7.5%), Graphite India (100%), Grindwell
Norton (130%), GSFC (110%), HEG Ltd (30%), Hindustan Media Vent (12%), Indian
Bank (42%), IMFAL (15%), Indo Thai Secur (10%), JK Tyre (75%), Jubilant Foodworks
(25%), Kanco Tea (50%), MT Educare (20.5%), Manappuram Fin (22.5%), Monsanto
India (180%), NCC Ltd (20%), OBC (33%), Oriental Carbon (55%), Subros Ltd (35%),
VIP Ind (50%), Zydus Wellness (60%), Alkyl Amines (80%), Amrutanjan Health (120%),
Arman Fin (12%), Bhagiradha Chem (10%), Birla Ericsson (10%), Cadila Health (240%),
Dena Bank (9%), Edelweiss Fin (20%), HT Media (20%), IL&FS Trans (40%), JK Lakshmi
Cement (40%), JSW Steel (110%), Jain Irri (25%), Joonktollee Tea (30%), Jupiter Info
(1%), MCX (100%), Nestle (140%), Nile (30%), Oracle Fin (3600%), Oriental Hotels (40%),
PC Jeweller (32%), Puravankara Proj (31%), Safari Ind. (10%), Sona Koyo (65%), Take
Solu (40%), Tata Coffee (130%), Torrent Pharma (125%), Zuari Agro (20%), Zuari Global (10%) etc.
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13
Scrip Watch
Alicon Castalloy (Rs. 290.00) (Code: 531147) :- Aluminum sector company's stock
prices witnessed 52 week high at Rs348 and low at Rs117. Based on the order inquiry, preparations for new product launching, merger with atlas cast alloy it can be said that the company's
future is bright. In the fourth quarter the top line was as per market expectations but bottom line
was poor. The company announced final dividend of Rs3 per share for FY2015. In the fourth
quarter the company's income increased by 24% to Rs144 crore. EBITDA margin also increased
by 12.9% at 14.2%. Net margin remained under pressure due to high depreciation, increasing
finance cost and high tax cost. It has got SEBI nod for merger with Atlas Cost Alloy. The company
may witness turnaround by next year. The stock is being traded at PE multiple of 17 and is likely
to cross Rs300 level in short term and Rs350 in long term.
Gillette India (Rs. 4378.00) (Code : 507815) :- Gillette India stock was firm strong
Q4. Its net profit rose 263% to Rs 31 crore on 9% growth in net sales to Rs 494 crore in Q3 March
2015 over Q3 March 2014.Driven by the company's focus on innovation, net sales increased with
robust growth across all segments. Net profit increased due to continued focus on operational
excellence, the company said in a statement. Sales in Grooming segment were up 9% versus
year ago, driven by strong brand fundamentals and product portfolio. Oral Care segment delivered sates growth of 6% versus last year driven by superior value propositions and strong mix.
Sales in the Portable Power business were up 4%, versus year ago behind strength of product
portfolio.The large-cap company has an equity capital of Rs 32.59 crore. Face value per share is
Rs 10. Accumulate.
09691152224
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14
Market Tips
Mahindra Lifespace (Rs. 465.00) (Code : 532313) : Mahindra Lifespace Developer (MLD) is an integrated township and residential property builder. It will be a key beneficiary of
falling interest rates on home loans as it is one of the leading company active in affordable housing development. The companys geographically diverse presence, established position in the
growing affordable housing market, and good mix of residential and integrated business cities
hold it in good stead. Currently, 5.9 msf of residential real estate is under construction in five
locations, including Bengaluru, Chennai and Nagpur. In addition to middle income and luxury
homes, the company has also launched affordable housing projects in Chennai and Mumbai. The
company plans to launch 4.5 msf of projects. MLD holds land banks of over 12 msf to support
future project launches, primarily in Chennai. It also recently acquired land with saleable area of
0.32 msf under joint development in Mumbai. The stock currently trades at seven times its trailing
12-month earnings. Buy.
Bharti Infratel (Rs. 409.00) (Code : 534816) : Bharti Infratel owns 85,892 telecom
towers which included its 42 per cent stake in Indus Towers. The tenancies in its sites have risen
steadily from 1.5 levels three-four years ago to 2.12 currently. With Bhartis own operations along
with anchor tenants, such as Vodafone and Idea Cellular, the companys revenue has grown
steadily. These three operators command nearly 70 per cent of the telecom revenue market share
on a pan-India basis. The company also serves several other operators in many circles. Indus
Towers has an even better tenancy ratio of 2.17. With Reliance Jio signing tower sharing agreements with both Bharti Infratel and Indus Towers, there is scope for improving tenancies further.
According to a report from the telecom regulator, wireless penetration in rural areas is still only a
little over 45 per cent. This low tele-density in the hinterland presents a significant opportunity for
operators. So, a pan-India tower operator such as Bharti Infratel would benefit. Bharti Infratel has
reduced debt from Rs.3,342 crore in 2013-14 to Rs.2,582 crore currently. Interest costs have
reduced by 27 per cent in FY15 to Rs.290 crore. In an another development, Bharti Infratel has
been included in MSCI India index. The stock has more positives. Accumulate.
Ajanta Pharma (Rs. 1294.00) (Code : 532331) : Ajanta Pharma, a Rs. 1,450
crore plus Mumbai based pharma major, has posted satisfactory financial performance for the
fourth quarter ended March 2015 and its standalone net profit increased by 20.3 per cent to Rs.
84.31 crore from Rs. 70.09 crore in the corresponding period of last year. Its standalone net
sales moved up by 19.7 per cent to Rs. 360.36 crore from Rs. 301.14 crore. EBIDTA increased
by 22 per cent to Rs. 140.72 crore from Rs. 115.36 crore. Export contributed 67 per cent of the
revenue for the quarter. R&D expenditure increased to Rs. 24 crore from Rs. 11 crore in the
similar period of last year. The board of directors has recommended equity dividend of 300 per
cent or the year 2014-15.
SMART
INVESTMENT
15
SMART TIPS
Marksans Pharma (Rs. 58.00) (Code: 524404)
Pennar Industries (Rs. 47.00) (Code: 513228) :- The shares of this B Group listed
company have a face-value of Rs. 5. The company makes interim products of iron and steel. The
share touched a high of Rs. 68 and low of Rs. 26 in the last year. It is a leading industrial organisation
providing specialised and engineered steel solutions. It has presence in four crore business units
such as steel products, tubes, industrial components and systems & projects. Company recently
announced encouraging March quarter results. On a consolidated basis, net profit was up 116%
to Rs. 16 crores and sales were up 14% to Rs. 367 crores. EBIDTA rose 31% to Rs. 118 crores,
and EBIDTA margins improved 8% to 9.8%. Company has pending orders worth Rs. 76 crores,
which includes Hindustan Door Oliver, United Spinning, Sterling, Wilson, Integral Coach Factories, Southern Railway and East Railway. It also has solar power orders from Odisha and MP. The
company is expected to benefit the most because of the government's focus on railway, solar
power and environment segments.
SMART
INVESTMENT
16
:- The banking stock has been converted from face value of Rs10 a share to five shares with face value of Rs2 a share. In March
quarter the company's income increased from Rs1838.71 crore to Rs.1908.28 crore, while profit
increased from Rs277.29 crore to Rs280.52 crore with EPS of Rs3.27. The company's equity is
Rs171.33 crore. The bank has branch network of 1370 branches. It has witnessed sharp fall in its
gross NPA. The FIIs hold 37.65% stake in the bank, while DIIs hold 27.05% and public holds
35.05%. The company's market capital is 12758 at current valuation. The stock is being quoted at
lower valuation compared to its peers and after robust results the stock is likely to touch a new
high. The bank is looking for expansion which will improve its CASA. The bank has declared 10%
dividend and it is now about to declare bonus shares.
Magma Fincorp is one of the leading NBFCs in the country. It is listed in 'B' group with face value of Rs2 a share. During the year,
the stock prices witnessed a high at Rs142 and a low at Rs75. At current market rate the market
cap is Rs1765 crore. The promoters hold 33.57%, FII hold 43.18%, DII hold 13.255 and public
hold only 10% stake in the company. In FY2015, the company's income increased from Rs2081.32
crore to Rs2353.63 crore, while profit increased from Rs151.83 crore to Rs180.67 crore with EPS
of Rs8.88. the stock is being quoted at lower PE of 10.2. As against equity of Rs38 crore the
company has reserves of Rs1616.83 crore. One of the leading brokerage houses has given target
of Rs164 in 24 months. Investors can consider it for investment in phased manner.
SMART
INVESTMENT
17
Make in profit
The aim of investment or trading in stock markets is to make profit. After NDA government's one year
BSE Index has gone up by 3000 points. No doubt it touched 30,000 one time but at higher level there is
selling by FIIs.
FIIs are not happy with MAT out come as old noticed served will stay and whatever committee is formed
may decide about future action. FIIs are taking advantage of depreciating rupee and higher dollar. Over
and above market is up so profit booking is on card.
We are saved by Indian institutions as earlier they were sellers but with FIIs are selling; there is clear
instruction to buy.
Dollar is going strong with crude price also up in the world. Our government forced to increase Petrol /
Diesel l price by Rs.3.25 and 2.75 respectively
U.S. Employment data are very positive so Dow is going up but at the same time there is a risk of
increase in interest rate.
Nifty has closed at 8262 now 8225 and 8180 are support and resistance is 8350.
The trend of the market is depending on monsoon and corporate results. Monsoon may come early but
there is indication of short fall.
The corporate results are not that encouraging.
We so Lupin doubles in last one year and after last results it has fallen. We consider this as good
opportunity to accumulate slowly. In metal JSW steel Sesa are good short on rise. In IT sector Infosys and
TCS are attracting value buying at lower price.
Black money has nothing new only punishment and fine increased. This is harmful for stock markets as
it is believed that most of black money is generated in stock markets.
The loss of income from crude may harm infrastructure projects to the certain extent.
BUY.... BUY....BUY
Co. Name
Pennar Ind.
S. I. Bank
Dhanlaxmi Bank
Marksans Ph.
GSFC
Virtual Glo.
Sintex
R.Com.
Suprajit Engg.
Federal Bank
Code
513228
532218
532180
524404
500690
534741
502742
532712
532509
500469
Price
51.00
24.00
35.00
58.00
74.00
15.00
109.00
65.00
128.00
138.00
Co. Name
Union Bank
Shemaroo Eng.
Motherson Su.
HSIL
Centum Ele.
SML Isuzu
HUL
Jubilant Food
Bajaj Auto
Nestle
Code
532477
538685
517334
500187
517544
505192
500696
533155
532977
500790
Price
164.00
216.00
495.00
383.00
761.00
1187.00
845.00
1747.00
2081.00
7012.00
SMART
INVESTMENT
Investment Ideas
18
Nifty (8261) :- For next week nifty has strong support around 8210 level, break with volume
will take it to 8135---8090 level. On the upper side it has strong hurdle at 8335---8355 level, cross
over with volume will take it to 8500 levels
Chennai Petro (90.25) :- Stock is looking explosive for positional traders. One can buy
this stock on dips around Rs.90 keeping stop loss of Rs.87. On the upper side stock will zoom up
to Rs.95 level, cross over will take it to 98.5---105 levels in next 1 month
Sterlite Techno (63.30) :-
Dhunseri Petrochem (Rs. 65.25) (Code : 523736 & NSE) :- Dhunseri Petrochem
Ltd. manufactures and sells polyethylene terephthalate (PET) resins in India and internationally.
The company's Petrochem division offers PET resins used for the manufacture of PET bottles that
are used in the packaging of mineral water, carbonated soft drinks, edible oil, cosmetics, toiletries,
milk, hot-fill drinks, and juices. This division offers PET resins under the ASPET brand. Company
has demerged its Tea division in Separate Company. It has also demerged its IT SEZ division to
Separate Company.
It has an equity base of just Rs.35.03crore that is supported by reserves of around
Rs.538.75crore. It has a share book value of Rs.240.
DPL has posted encouraging numbers in Q4FY15 as it notched net sales of Rs.644.35crore
with net profit of Rs.28.55crore posting an attractive EPS of Rs.8.15 from sales of Rs.978.89crore
with net profit of Rs.2.33crore in FY14. Remember after demerger of DHUNSERI PETROCHEM &
TEA LTD in three separate companies, DHUNSERI PETROCHEM (DPL) has posted Q4FY15
result as single entity. That's why company has reported lower sales.
SMART
INVESTMENT
19
For FY16, DPL can deliver net sales of Rs.3050crore and profit after tax of Rs.80crore translating into EPS of Rs.22.83. Script is trading at 6.06xFY15 EPS &2.9xFY16(E) EPS. It is regular
dividend paying company. After demerger company has maintain its healthy dividend payout policy.
With Q4FY15 Result Company has declares 40% dividend for FY15. At current share price, this
results in a dividend yield of 6.15% which is really very encouraging. Company has fix book closure date from 23rd July 2015.
Investors can buy this stock with stop loss of Rs.55. One the upper side it will zoom up to Rs.85-90 levels in medium term while it will zoom to Rs.125 levels in next 12 to 15 months.
Open
27,249.42
27,502.91
27,023.71
27,290.17
27,233.90
NSE - Nifty
11-May-15
12-May-15
13-May-15
14-May-15
15-May-15
Open
8243.2
8326.15
8181.55
8232.45
8240.3
High
27,544.24
27,502.91
27,299.80
27,293.99
27,379.57
Net
High
8332.75
8326.65
8254.95
8236.25
8279.2
Net
Low
27,231.28
26,837.39
26,750.01
26,948.62
27,159.76
Weekly
Low
8224.65
8115.3
8089.8
8137.3
8212.2
Weekly
Close
Diff
27,507.30 401.91
26,877.48 -629.82
27,251.10 373.62
27,206.06 -45.04
27,324.00 117.94
Gain 218.61
Close
Diff
8325.25 133.75
8126.95 -198.3
8235.45
108.5
8224.2 -11.25
8262.35
38.15
Gain
70.85
SMART
INVESTMENT
20
NIKHIL BHATT
(+919979380808)
WWW.INVESTMENTPOINT.IN
1. Sun Pharma (946) : It is suggested to buy @ Rs 953 with SL of Rs 933 for the target of
Rs 966 - 977; below Rs 933 it can fall up to RS 913 - 903 levels. If it crosses Rs 977 level than
expect nonstop rally up to Rs 988...!!
2. Tata Steel (364) : Operator based Game start in this stock, Buy @ Rs 373 With SL of Rs
347 for the target of Rs 380 - 393 level below Rs 337 it can show further downfall up to Rs 327!!!
70 for the
4. SKS Micro (459) : This stock is looking very good to buy @ Rs 466 with SL of Rs 444 for
the target of Rs 481 - 490 Levels below Rs 430 is stock shall witness free fall!!!
5. M & M Fin. (274) : Buy @ Rs 283 levels considering minor support of Rs 366 and stop
loss of Rs 255 for an upper target of Rs 333 - 347 levels. Below Rs 255 it can slip up to RS 247 240 levels!!!
6. ICICI Bnak (312) : Operator based buying has been there in this stock. Buy @ Rs 323
with SL of Rs 290 for the target of Rs 330 - 344 levels it is very good for long term position also!!!
7. Bank of Baroda (160) : Trading point of view BUY @ Rs 171 With SL of Rs 147 for the
target of Rs 183 - 191 level below Rs 138 It can show further downfall up to Rs 130..!!!
8. Den Network (142) : Buy delivery of this stock near @ Rs 153 with SL Rs 137 for the
target of Rs 161 - 173 level. It's very good for long term position also!!!
9. PTC India (67) : For medium term buying is suggested @ Rs 73 with SL Rs 63 for the
target of Rs 78 - 90 level. Below Rs 58 it can show further downfall!!!
SMART
INVESTMENT
Primary Market
21
- Dilip K. Shah
More than two dozen companies all set to raise Rs9300 crore from the market
However discounted IPOs, depressed secondary market and China effect are cause of concern
Funny Software's BSE-SME IPO with fixed price of Rs14 entered into the market
UFO Movies IPO got listed in discount affecting moral of the market
PNC Infra issue gets poor response in retail category:
Sail through with difficulties as it was managed by QIB
IOC and NTPC got cabinet approval to raise Rs13500 crore through disinvestment
Funny Software's IPO got 60% subscription on the first day
In PNC Infra refund/allotment may take place on 22/23, listing on 25/26
Cartel for taking up UFO Moviez share prices to Rs650 after poor listing
Dr. Lal Pathlabs appoints investment bankers for Rs1200 crore IPO
Narayana Health wmay come up with Rs 1500 crore IPO by end of current financial year
IPO rally in the primary market has taken a break. The steep correction in the secondary
market along with listing of IPOs at discounted rates has shaken faith of the investors resulting
into slow pace of new IPOs in the primary market. Still many companies are planning to enter
into the market with improvement in the overall sentiment in the share market along with the
government's planning to come up with a number of PSU disinvestment issues. It is believed
that more than a dozen companies are planning to raise nearly Rs9300 crore from the market.
However, it is also believed that during May 7 to May 12, IPOs worth 3.7 trillion yen means
$597 billion were to hit the bourse in the dragon land, which is nearly 11 times compared to
money raised by India companies in last decade. Moreover, India's Forex reserves is also
depleting. As Chinese companies are giving better returns the FIIs are pulling back their investment from India to pour money in Chinese market. The china effect is felt on the Indian
market.
Details of the companies which have obtained SEBI approval to come up with IPO is mentioned in the separate box.
* Last week's issues and listing :- PNC Infra was in the market and UFO Moviez got listed
during last week.
PNC Infratech :- Rs488 crore issue that opened on May
8 with offer price of Rs355 to Rs378 got closed on May 12.
Subscription :- IPO received poor response on the first
day and got only 0.01 times subscription. In this column of
Smart Investment, it was indicated that it will get poor response in HNI category and will be managed through QIB.
Premium
(Rs.)
(Rs.)
355 to 378
Discount
Funny
Software Ltd.
Issue size
(Rs. Cr.)
Offer price
(Rs.)
Minimum Applications
Rating
Remark
%
14-5-2015
32,80,000 Eq.
Rs. 14
37 %
PRICY
20-5-2015
SMART
INVESTMENT
22
Issue Amt.
(Rs. Cr.)
AGS Transcat
1350
Dilip Buildcon
750
Nuziveedu Seeds
700
Navkar Corp.
600
Catholic Syrian Bank
400
Syngene International
400
Prabhat Dairy
275
Precision Camshafts
250
S H Kelkar & Co.
250
Shree Shubham Logistics 210
SSIPL Retail
95
Numero Uno Clothing
70
Amar Ujala Publications 60
Pennar Engineered
50
further to Rs623 and Rs586 and ultimately closed at rate of Rs598.80. On May 15, the stock
closed at Rs610.25. It is believed that the target is to take the stock at level of Rs650 provided
the market sentiments are favourable.
* This week's new issues :- Only one issue of BSE-SME platform is in the market.
Funny Software Ltd :- The issue with fixed price of Rs14 has entered into the market
offering 32.80 equity shares to raise Rs4.59 crore fund. It is believed that the issue got 60%
subscription on the first day. It will close on May 20. More details are given in a separate box.
Funny Software
Eq. Shares
Market Makers
1,80,000
Net Issue (Public)
31,00,000
Total Size
32,80,000
City : NEW DELHI
IPO Registrar : Skyline Services
Lead Manager : First Overseas Cap.
Listing Information of
UFO Moviez India
BSE Code
539141
Listing Date
14-5-2015
Offer Price
Rs. 625.00
Listing Price
Rs. 600.00
Listing Day High Rs. 623.00
Listing Day Low Rs. 586.00
Listing Day Close Rs. 598.80
CMP (15-5-15) Rs. 610.25
SPARC :- The company known as Sun Pharma Advance Research demerged from Sun Pharma. At the
board meeting on May 12, the company has decided to
come up with Rs250 crore rights issue. The record date
will be declared later on.
SMART
INVESTMENT
23
Funny Software IPO opens on 14th May & Closes on 20th May
Price band Fixed Rs. 14 : Listing on BSE - SME Platform
Funny Software Ltd (FSL) is engaged in the providing IT services, consulting and business solutions organization and delivering results to its valued clients. The company also operates as reseller
organization by a team of dynamic professionals with marketing, sales and technical know-how
spread across various industries. It predominantly caters to Delhi and nearby markets and act as IT
Distribution space. Going forward, FSL plan to increase its product portfolio and also plans to penetrate in new markets.
FSL has a comprehensive portfolio of product offerings covering desktop, laptops, servers, Hard
Disk Drives, Scanners, Memory Modules and Cards, USB Drives, Speakers, Optical Media, Casings, Electronic Copy boards, Clear One Audio Conferencing, Elmo Document Camera etc.
Advisors and consultants in respect of matters relating to Computer hardware software computer
aided Programmes.
To part finance acquisition of certain fixed assets and needs for incremental working capital as
well as general corpus funds, it is coming out with a maiden IPO of 3280000 equity share of Rs. 10
each at a fixed price of Rs. 14 per share to mobilize Rs. 4.59 crore. Issue opens for subscription on
14.05.15 and will close on 20.05.15. Minimum application is to be made for 10000 shares and in
multiples thereon, thereafter. Issue is lead managed by First Overseas Capital Ltd and Skyline
Financial Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE
SME platform. Issue is fully underwritten by two underwriters.
Financial Performance : On performance front, the company that started its operations in mid
2012-13 earned net profit of Rs. 0.003 crore on a turnover of Rs. 0.85 crore. For fiscal 2013-14 it
has marked net profit of Rs. 0.04 crore on a turnover of Rs. 3.38 crore and for first nine months
ended 31.12.14 it has earned net profit of Rs. 0.04 crore on a turnover of Rs. 2.76 crore.
Note : The company issued 86500 shares of Rs. 10 each at a price of Rs. 200 per share on
25.03.08 and then issued bonus shares in the ratio of 17 for 1 on 12.10.13. Thereafter it further
issued at par equity worth Rs. 7.33 crore plus on 25.10.13 and 02.09.14 to take it's paid up equity
capital to Rs. 9.07 crore.
If we annualized these earnings, then EPS for fiscal would be around Rs.0.06. And post issue its
equity of Rs. 9.07 crore will jump to Rs. 12.35 crore that will translate it in to an EPS of Rs. 0.04
indicating for its issue price at a P/E of 350.
Recommendation : We have witnessed erratic movements of SME IPOs post listings despite
market making that might have helped in listing gains, but later on regular trading remains a far cry.
Due to this and the entry barriers, broking community at large discourages investments in SME
IPOs.
Merchant Bankers Performance : Merchant banker has poor track record.
DISCLAIMER : No financial information whatsoever published anywhere here should be construed
as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published
here is purely for educational and information purposes only and under no circumstances should be
used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. As SME issues have entry
barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Author has no plans to invest in this offer.
SMART
INVESTMENT
24
SMART
INVESTMENT
25
S. N. Zaveri
SMART
INVESTMENT
26
: Dr. Reddy's Laboratories reported 8 per cent annual growth in its consolidated net profit for the January-March on the back of
strong growth in its revenues. Dr. Reddy's Laboratories reported a net profit of Rs 519 crore over
sales of Rs 3,870 crore in the quarter ended March 31, 2015. Dr. Reddy's net profit in the March
quarter was impacted by forex losses of Rs 84.3 crore high research & development (R&D) expenses which came in at Rs 514 crore against Rs 398 crore year-on-year. Operating profit (EBITDA)
was Rs 810 crore against Rs 781 crore year-on-year and operating margin declined 80 basis
points annually to 21 per cent. The company has declared a dividend of Rs 20 per share. The
stock is attractively valued at this level. Buy.
Bajaj Auto (Rs. 2181.00) (Code : 532977) : Two-wheeler major Bajaj Auto is looking at increasing its total market share in the segment to nearly 23 per cent over the next one year.
It currently has a market share of 17 per cent in the overall two-wheeler segment and competes
with the likes of Hero, Honda and TVS. The company has launched new Pulsar range AS 200,
AS 150 and RS 200. The company is considering offerings in the 350 to 400 cc category, but did
not reveal any time frame for a possible launch.Bajaj Auto may soon sell more motorcycles in
overseas markets than it does at home.Of the 2,76,000 bikes that the company sells on an average every month, it currently exports around 1,30,000 bikes. Given the sluggish growth in the
domestic market against the exports that have been growing at a fine clip. The expectation of
further rate cut will benefit the company. The stock is trading at Rs. 2165 which looks reasonable.
Buy.
www.Chittorgarh.com
Stock Broker
VS
Stock Broker
IPO Calendar
Free IPO Email Alerts
Visit : http://www.chittorgarh.com
SMART
INVESTMENT
27
Pennar Ind. (Rs. 51.35) (Code: 513228) :- There was a good correction in the stock
in the recent past. Market players used this opportunity to buy the stock in large numbers and to
take long positions. The stock can deliver good returns in the short term.
Uniply Ind. (Rs. 19.00) (Code: 532646) :- The company's open offer to acquire up to
26% stake at Rs. 13.50 per share opened on Thursday and will close on May 27. Around 5,600
individual shareholders own 50% stake in the company. The stock will remain in focus due to the
open offer.
Virtual Global Education (Rs. 15.00) (Code: 534741) :- Asia Investment Corporation, Mauritius, acquired 25.35 lakh shares at Rs. 13.8 per share of this education sector company at the beginning of last week. It acquired 26 lakh more shares the next day. The check-in by
FIIs is expected to lead to follow-up buying in the stock.
Suzlon Energy (Rs. 25.00) (Code: 532667) :- Suzlon Energy has bagged a 90 MW
order from REPower. This is a repeat order, which indicates that Suzlon is regaining trust. The
stock can show some current.
Subex (Rs. 13.00) (Code: 532348) :- This IT company's share was an underperformer
last year and declined to new lows due to poor performance. However, big changes in the management and the board has led to improved performance. For the March quarter, company reported net profit of Rs. 10.20 crores as against loss of Rs. 11.61 crores in the same quarter of last
year, thus achieving turnaround position. The stock can be seen bottoming out as its performance
improves in coming quarters.
Jubilant Ind. (Rs. 163.00) (Code: 533320) :- Recently, Aditya Birla Retail acquired
the hypermarket business of Jubilant Industries. As per the deal, AB Retail will acquire four
hypermarket stores in Bangalore. Experts believe the stock is still undervalued, and peg the worth
of the share at Rs. 600.
SMART
INVESTMENT
28
Kokuyo Camlin (Rs. 93.00) (Code: 523207) :- Promoter holding in this stationary
segment company is 75%. Japanese promoter holds controlling stake. The stock is on the radar
after registering turnaround results.
ADF Food (Rs. 71.00) (Code: 519183) :- This packaged foods company has a solid
business model. Promoters are increasing their stake. Recently, they acquired 2 lakh shares from
the open market.
www.rupeegains.com
Financial Weekl
y
eekly
Every Wednesday
Gujarati Edition
SMART
INVESTMENT
29
GE Shipping (Rs. 354.00) (Code: 500620) :- The stock has been in a tight range in
spite of very good performance in the fourth quarter. A leading fund house has taken long position
on the counter. In spite of all the problems in the sector, the stock can be seen outperforming.
Sequent Scientific (Rs. 572.00) (Code: 512529) :- This company was known as
PI Drugs earlier. Company has increased FII investment limit to the tune of 32.46% of the paid-up
capital, putting it on investors' radar.
Glenmark Pharma (Rs. 907.00) (Code: 532296) :-
Dalmia Bharat (Rs. 504.00) (Code: 533309) :- This Dalmia group cement company
has achieved turnaround position in the fourth quarter. This led to a nine times increase in trading
volumes and big jump in price. It registered net profit of Rs. 47 crores as against loss of Rs. 5
crores last year.
Eicher Motors (Rs. 18,707.00) (Code: 505200) :- Some analysts are very positive
on the stock despite high valuation. The margins of Royal Enfield are at an all-time high of 26.1 per
cent. The company is expected to grow at a CAGR of 65% over next three years.
Jubilant Food (Rs. 1748.00) (Code: 533155) :- Company has reported 26% rise in
net profit and 25% in sales in the fourth quarter. Credit Suisse has upgraded the stock and revised
the target price from Rs. 1620 to Rs. 1820. The company plans to revise its prices, which would
also have a positive impact on the stock.
Just Dial (Rs. 1070.00) (Code: 535648) :- In the last year, the share fell from a high
of Rs. 1,900 to a low of Rs. 1,036 on March 28. The decline was mainly because of sale of their
stakes by PE investors. However, it is believed that some big players have acquired large number
of shares, which is expected to help the stock stabilise, and then spurt.
NBCC (Rs. 771.00) (Code: 534309) :- This PSU has corrected sharply from its highs.
Company recently bagged some orders in south India. The company is expected to bag big orders
in the smart city projects. The share can be seen touching Rs. 1000 levels in a year.
SMART
INVESTMENT
Outlook on Rupee
30
GLOBAL FX AUTHORITY
Dharmesh Makwana
Associate Director
at India Forex Advisors
Globally, the pound continued its upward journey after a comprehensive victory of the Conservative party under the leadership of David Cameron. The victory has cleared the political uncertainty, which has been a major pull back for the UKs economic recovery. The further gains in the
GBP/USD pair were muted as the Bank of England reduced its growth forecast for the end of the
year. The BoE is expecting that the UKs inflation might slow down to zero before heading upwards.
The short term upward movement in Euro restarted after the halting for a week due continued
downward surprise by US economic data. The EUR/USD pair surged to its four month high levels
after the release of improved GDP growth numbers from the Europe region. The European economy
grew 0.4% against the previous reading of 0.3%. On the other hand, the US economic data failed
to meet the estimates. The US retail sales number, which is a key indicator of consumer spending,
released at flat against the expected growth of 0.3%. The consumer sentiment released near its 7
month low levels of 88.6.
On the domestic front, Indias CPI inflation eases to four month low of 4.87% and WPI inflation
tumble to its life time low of -2.65%. The favorable crude oil prices continued to put downward
pressure on headline inflation. Interestingly the food inflation remained in control despite the untimed
rain. The industrial production numbers continued to paint ugly picture of economy. The Industrial
production grew by just 2% against previous reading of 5%.
Globally, the market participants will be closing the monitoring the selloff in the debt markets.
The German debt yield has surged from 0.06% to 0.70% in just matter of 2 weeks, the US bond
yield has also surged near its five month high levels of 2.36%. The declined spread between US
and German yield has resulted in carry trade unwinding and supported short term upward movement in the EUR/USD pair. The EUR/USD pair will take further cues from the Euro Area flash
manufacturing PMI numbers and Ifo Business Climate.
The US dollar, which has been trading with negative bias, will take further cues from the FOMC
meeting minutes. The US Fed has earlier maintained that the temporary halt in the recovery is due
to unfavorable transitory factory. The US CPI inflation is expected to release near 0.2% level. The
Japan yen, which has been trading in a range from last few months, will take further cues from the
monetary policy stance of Bank of Japan. The BoJ is expected to keep its monetary policy stance
unchanged to support the economy.
On the domestic front, the equity markets, which have been very volatile in last few weeks, will
take further cues from the global cues as the result session in its last phase. The Reserve Bank of
India had earlier rejected all bids for 364 days treasury bill auction, indicating that the central bank
is uncomfortable with the current yield of markets.
In the weekly chart of USDINR, we are observing that upward price momentum in the pair has
halted after taking resistance around 64.30 levels which is the top to top rising trendline. Weekly
RSI is exhibiting a negative divergence, where the prices have made a higher high but RSI has
made a lower high suggesting weakness. USDINR pair is currently trading near the crucial support of 63.40 which if breached could test the levels of 63.10 and 62.80. Resistance on the upside
is at 64.30 levels.
SMART
INVESTMENT
Astromoneyguru says
31
Lt Col Ajay
09414056705, 9887056704
SMART
INVESTMENT
32
Senior Astrologer
Dharmesh Joshi
Mob. : 9909941816
E-mail :
stockmarket@ganeshaspeaks.com
18-05-2015, Monday :- " You must have seen the amazing effect of the zero weightage
on the markets on the last Wednesday, 13-05-2015. Nifty slid down by -199 points on Tuesday,
12-05-2015, whereas it moved up by 546 points on 13-05-2015. Overall, thus, the pattern remain
highly volatile and unexpected. " Our neighbour country Pakistan yet again witnessed fresh violence on Wednesday 13-05-2015. " Although the market was trading at a bullish trend, Ganesha
had foreseen and predicted in advance that the Opening shall be positive on 13-05-2015. This
was exactly as mentioned in Ganesha's 2015-16 Stock Market Prediction Book. " Although Nifty
seemed to have moved up and down considerably within the last week, the overall difference was
only by 13.15 points. " The Sun has changed Signs, and is now in conjunction with Mercury, Mars
and the Moon. " From Opening to 10:30, Nifty shall move around the surface. " From10:30 to
12:00, Nifty shall remain positive. " Between the period from12:00 to the closing bell, just buy and
sell Nifty stocks, i.e., do only jobbing.
19-05-2015 Tuesday :- " Ganesha advises you in advance to remain very cautious while
trading in the Nifty stocks today, due to the conjunction of four planets - the Moon, Mars, Sun and
Mercury. " Friends, Mercury has now turned retrograde, so there may be high volatility in Bank
Nifty as well as Bank Stocks. Hence, you should proceed ahead with caution, only as per your
delivery capacity. " Ganesha informs you a week in advance that the Opening on 21-5-2015 and
22-05-2015 might be negative. Thus, you must be ready to deal accordingly. " Friends, we would
like to remind you that tomorrow will be a Zero Weightage Day. " Do not depend on the Preopening; just expect a flat to negative trend till 10:30 at Nifty today. " From 10:30 to 12:00, Nifty
may move upwards, step by step. " Between 12:00 to 12.30, Nifty may witness a small correction.
" From 12:30 to 13:45, Nifty shall go up. " Between 13:45 to 14:15, be ready to book your profits
at Nifty. " From 14:15 to 15:15, there may be slight buying in the Nifty Stocks. " You may again
book your profits in Nifty, during the last 15 minutes of the trading day.
20-05-2015 Wednesday :-
21-05-2015, Thursday :- " Today Moon-Venus shall be in conjunction, and this planetary
combinations shall encourage you to create your portfolio. Do so, but proceed ahead after calculation of exiting in 2018. " Opening trend for today and tomorrow does not look set to be reliable
SMART
INVESTMENT
33
at all. Thus, you must wait for the first hour of the day, and let things settle down a bit. " 10:15 to
13:15, there may be strength at Nifty, owing to the expected buying trend in the A Group stocks. "
Nifty shall remain soft, though, during 13:15 to 14:00. " From 14:00 to 14:30, there shall be slight
buying in Nifty, but overall this may not be a very useful trend, feels Ganesha. " The last half an
hour of the trading day shall comprise the highest volatility time frame of the day. You will get to
see movement on both the sides; thus, it is the best time slot for Intraday.
22-05-2015, Friday :-
" Today is the last day of the trading week, and it is also the day of
settlement for Dabba Trading. Thus, Ganesha urges you to be extra cautious today. " Today, if
you combine the collective wisdom of Astrology, Technical and Fundamental analysis, and view
your trade strategy, you shall benefit vastly. " Friends, now Sun-Mars shall be in conjunction. You
shall be able to volume-based work in the Pharma stocks now. " From Opening to 12:00, Nifty
shall have movement on both the sides, and you would do well to follow the adage 'Trend is our
Friend'. This will also help you earn well. " Nifty shall be up during 12:00 to 13:00. " Nifty will be
down from 13:00 to 13:40. " Nifty shall again be up from 13:40 to 114:30, says Ganesha. " The
trend shall overall be soft in Nifty during 14:30 to 15:30.
SMART
INVESTMENT
34
News Track
SMART
INVESTMENT
35
Reccom. Weekly
11-5-15
High
Mon.
Reliance
860
898
Adani Port
319
344
Cipla
640
696
IDBI
75
78
Genus Ovr.
26.5
29
Laxmi Ovr.
11
13
DCM
93
95
Styrolution ABS
622
655
DIC Inida
398
461
Shoppers Stop
374
389
A.B. Nuvo
1871
1913
Century Tex.
637
658
Kotak Bank
1327
1355
Merico Kaya
1585
1655
Claris Life
254
264
L&T
1597
1629
Sun Pharma Adv. 384
400
Sundram Clyton 1899
1958
Eicher Motors 15789 18460
KajariaCeramics
565
799
Asian Paints
760
801
Piramal Enter.
978
1019
Welspun India
498
551
Kirloskar Bro.
186
203
Sintex
108
112
UPL
505
524
4.42
7.84
8.8
4
9.4
18.2
2.2
5.3
15.8
4
2.2
3.3
2.1
4.4
3.9
2
4.2
3.1
16.9
41.4
5.4
4.2
10.6
9.1
3.7
3.8
Company
Reccom. Weekly
11-5-15
High
Mon.
SKS Micro
447
470
G.E. Shipping
355
364
Amtek India
123
133
Rajesh Exports
242
252
CIPLA
653
696
ICICI Bank
316
325
Hindalco
139
145
Tata Motors
513
530
International Comb.231
303
Amtek India
123
133
Jubilant Ind.
149
179
Pantaloon Fashion 170
202
Tirupati Tyres
114
132
Shameroo Enter. 203
234
Mandhana Ind.
253
264
Philips Carbon
106
121
Ashok Leyland
68
75
Pitti Lamination
62
67
Conart Engg.
24
28
Shivam Auto
117
127
Global Vectra
46
53
PTC India
53
69
Lancor Holding
93
97
First Source
30
31
Opto Circuits
20
22
Micr Ele.
11
16
5.1
2.5
8.1
4.1
6.6
2.8
4.3
3.3
31.2
8.1
20.1
18.8
15.8
15.3
4.3
14.2
10.3
8.1
16.7
8.5
15.2
30.2
4.3
3.3
10
45.5
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