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Page
38

GAMC No. :1703/2015-17. Issued by SSP Ahd. Valid up to 31-12-2017


VOL : 8

Issue No: 26

RNI No : GUJENG / 2008 / 24320

17th A
ug. to 23rd A
ug. 2015
Aug.
Aug.

-: EVENT CALENDAR :-

FII Activity (Rs. Cr.)


Date

Buy Value

Sell Value Net Value

10-8-2015

3539.95

3554.38

-14.43

11-8-2015

3488.91

4225.72

-736.81

12-8-2015

3785.66

5640.68 -1855.02

13-8-2015

3854.34

4480.24

-625.9

14-8-2015

4442.23

4038.47

403.76

DII Activity (Rs. Cr.)


10-8-2015

1323.23

1373.28

-50.05

11-8-2015

1510.87

138013

130.74

12-8-2015

2660.03

1436.23

1223.8

13-8-2015

2056.47

1510.61

545.86

14-8-2015

1591.59

1412.39

179.2

US
Aug Empire Manufacturing
17 Aug
Jul Housing Starts MoM
18 Aug
Jul Building Permits MoM
18 Aug
Jul CPI YoY
19 Aug
U.S. Fed Releases Minutes from July
28-29 FOMC Meeting
19 Aug
CHINA
China July Property Prices
18 Aug
MNI August Business Indicator 20 Aug
Europe
Jun Trade Balance
17 Aug
Jun ECB Current Account
19 Aug
Jun Construction Output YoY 19 Aug

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SMART
INVESTMENT

17th August to 23rd August 2015

Derivatives strategies
emkaysubha@gmail.com

Subhashini
Suresh

The index would face strong support at 7940 levels


The technical indicator of RSI oscillator at 42.1 indicates nifty is weak. The MACD (Moving Average convergence and Divergence) indicates that the MACD is 3.9 and Signal line is
26.9, provides that the MACD is below the signal line, it provides a weak signal. The Fibonacci retracement levels of indicate the nifty is above retracement levels of 50% and
61.8% levels support levels of nifty at 8297.5 and above retracement level of 8213.2 Technical indicators provide 8381 level of nifty would remain crucial in the near term. On the
downside, the index would face support at 8230-8320 and resistance at 8410-8500 levels.
If nifty breaks at 8654 momentum, it would further go upside up to 8800. On downside, the
index would face strong support at 7940 levels. The put call ratio of open interest closed at
0.945, it indicates that the call are higher than put options it indicates bullish sentiment, so
cautions are required at higher levels and expected to be on range bound. The nifty trades
above 20-SMA (8499), 50-SMA (8377) and 200-SMA (8452), nifty provide uptrend. Nifty P/
E is 23.61, which indicates the average level of nifty returns over 3 years from the present
level are expected to be in range of 4.2%, over 5 years it is expected around the range of

SMART

17th August to 23rd August 2015

INVESTMENT

7.7% and 7 years return around 13.1%. Nifty above level of 24 indicates on overvalued and
negative returns are expected on near term. The P/BV indicators gauges on the market
sentiment of nifty, present value of P/BV is 3.41, expected returns based on price to book
value over 3 year period is 12.1% over and above 4.5 nifty P/BV lower returns are expected
on nifty around 3.3%. The dividend yield of Nifty trades around 1.44%., investing below
dividend yield of 1.5 % would provide fewer returns on nifty.
Overall, moving average indicates weakness on nifty but still indicators on ROC, 200MA
and Williams % R provides buy signal on nifty.

Buy... Buy...
GSPL
Den Network
Vidhi Dyestuffs
Makers Lab.
Sintex
GVK Power
Escorts
Noida Toll Bridge
Sunflag Iron
Dish TV
GATI
JBF Ind.

129.00
140.00
45.00
92.00
104.00
8.70
157.00
24.00
19.00
116.00
176.00
267.00

Buy on Dips
Apollo Tyres
Ashoka Buildcon
Jet Air.
Kovai Medi
Lloyd Ele.
Redignton
Mahindra CIE
Garware Wall
SKS Micro
Phoenix Mills
NRB Bearings
Seshasayee Paper

191.00
177.00
396.00
839.00
253.00
118.00
285.000
309.00
534.00
362.00
115.00
230.00

Sell on High

Hold
Bharat Forge
Allcargo
CIPLA
A.B. Nuvo
M&M
IPCA Lab.
Rel. Infra
KPR Mills
TCS
Persistent Sys.
Tech Mah.
Hester Bio
Godrej Ind.

1215.00
320.00
741.00
2284.00
1372.00
822.00
373.00
831.00
2713.00
715.00
556.00
695.00
385.00

ICRA
Alok Ind.
Asian Paint
J. P. Infra
ITC
Shriram Trans.
Tata Steel
DFM Foods
Gail
E-Clerx
Wimplast
MMTC

4090.00
6.99
897.00
130.00
318.00
865.00
237.00
520.00
336.00
520.00
1995.00
44.00

SMART

17th August to 23rd August 2015

INVESTMENT

Jatin Sanghavi

Market Scan

(Mumbai)
(M) 098205 26455
jatinsanghavi100@yahoo.com

Bears Strike Back, Trend Turns Bearish


Bulls Figth Back :- As expected the market could not overcome the key resistance level of
Nifty 8668 as it fell after making a high of 8621 but at the same time it fell and took support from
just above the lower boundary at 8321. The fall can be attributed to the lack of Narendra Modi
government in getting the much wanted GST bill passed. Besides the reason behind the fall, the
more important part is the failure of the Bulls in overcoming the 61.8% Retracement level. The
bounce back was a result of lower than expected inflation numbers which fuelled a rate cut expectation.
Technically Speaking :- Sensex opened the week at 28250, made a high of 28417, low of
27479 and closed the week at 27549. Thus it closed the week with a loss of 687 points. At the
same time the Nifty opened the week at 8577, made a high of 8621, low of 8337 and closed the
week at 8355. Thus the Nifty closed the week with a loss of 209 points.
On the daily charts, both the indices made a Homing Pigeon formation on Thursday which is a
bullish reversal pattern. On the weekly charts there is a big Bearish Engulfing pattern. Thus the
weekly charts suggest more bearishness to follow whereas the daily charts await confirmation
candle on Friday.
This week, both the indices once again fell from just below the strong Resistance zone of
Sensex 28578-28604 and Nifty 8654-8668; which is a result of confluence of 61.8% Retracement
and the Tweezer Top registered last time. Thus this Correction will only end when both Sensex
and Nifty overcome this strong Resistance zone.
As mentioned in the last week's article, the Nifty continues to move in a range of 8654 on the
higher side and 8321 on the lower side. After stopping at the upper boundary, Nifty is now testing
the lower boundary. Thus a breach of Sensex 27416 and Nifty 8321 will complete a bearish
pattern, which will lead the indices lower to test the Strong Support zone between Sensex 2720927174 and Nifty 8213-8186. This Support zone is a result of confluence between the Bullish
Upward Gap between Sensex 27202-27175 and Nifty 8195-8186, an intermediate low made by

Last Weeks Recommondation


Buy
Buy
Buy
Buy
Buy

Stocks
Reco.Price
TGT Reached Lot Size
Profit
CEAT
1021 1061 1043 250 5500
HPCL
970 1008 991 500 10500
Tata Mot.
393 407 395 1000 2000
Exide Ind. 159 167 161 2000 4000
R.Com.
73
77
75 4000 8000
Total
30,000

This Weeks Recommendations


Rec. Name
Buy TCS
Buy Infosys
Buy Wockhardt
Buy HCL Tech.
Buy CIPLA

CMP
2635
1158
1657
965
725

SL
2595
1136
1619
945
710

TGT-1 TGT-2
2698 2763
1192 1227
1718 1781
998 1031
749
774

:::: INDEX LEVELS ::::


NIFTY
SENSEX

S3
8195
27000

S2
8315
27385

S1
8408
27703

Close
8518
28067

R1
8626
28335

R2
8723
28696

R3
8844
29094

SMART
INVESTMENT

17th August to 23rd August 2015

Sensex 27209 and Nifty 8195 and 61.8% Retracement of the current rise i.e. Sensex 27174 and
Nifty 8213. A breach of this support zone will pave the way to test the lows of Sensex 26307 and
Nifty 7940.
This week, both the indices breached not only the short term average of 20dma (Sensex 28025 and Nifty - 8499), the medium term average of 50dma (Sensex - 27695 and Nifty - 8377)
but also the long term average of 200dma (Sensex - 27990 and Nifty - 8452). Thus the trend in the
short term, medium term and even the long term timeframe has turned bearish.
Bearish pattern formations still remain intact and hence one can still expect indices to achieve
the target of Bearish Rising Wedge pattern which falls at 26049 for the Sensex and 7882 for the
Nifty, as well as Ascending Broadening pattern and the target for that pattern is at Sensex 25034
and Nifty 7533. Coupled with this, both the indices had also completed a Head and Shoulders
pattern and the target as per this pattern is at Sensex 24486 and Nifty 7425. The above mentioned
patterns will fail only if Sensex closes above 29094 and Nifty above 8844.
Options data for August series indicates highest Put Open Interest buildup at the strike of 8200
and highest Call build-up is at the strike of 8600. Thus Option data suggests a wide trading range
with resistance coming in at 8600 and support around 8200.

Buy TCS : 2636 ; SL 2595 ; TGT 2698-2763

SMART

17th August to 23rd August 2015

INVESTMENT

Terrific Shots
Polaris Consulting (Rs195.00) (Code: 532254) :- The Tamil Nadu head quartered
company's share is listed in 'B' group with face value of Rs5 a share. The company witnessed
demerger before some time and it got separated from Intellect Design Arena and its prices are
being quoted around 170 after listing with market cap of Rs1700 crore. Polaris' market cap is
Rs200 crore. The demerger unlocked value for the shareholders. In June quarter, the company
registered net profit of Rs38.09 crore on income of Rs495.83 crore with EPS of Rs3.81 on equity
of Rs50.05 crore. There is a rumor in the market that the promoters may exit the company after
selling their stake leading to movement on the counter. Many big companies are interested in
buying this debt free midcap company and the deal may fetch high valuation. The stock may cross
Rs250 level.

Indian Hume Pipe (Rs379.00) (Code: 504741)

:- Cement and cement product


manufacturing company was set up in 1944 and it owns license of Australian Hume for manufacturing reinforced cement concrete pipes. It manufactures Prestressed Concrete Pipes, prestressed
concrete cylinder pipes, bur welded steel cylinder pipe, flume steel pipes. It has speciality in railway sleepers and water supply along with leverage projects. It has network of 20 factories across
the country. It also undertakes turnkey pipeline projects for water supply, integrated drainage,
power generation, rail transportation and others. In June 2015 quarter the company recorded net
profit of Rs6.32 crore on turnover of Rs212 crore with EPS of Rs10.42. the company's net worth is
Rs287 and book value is Rs115 crore. Considering high reserves and small equity the company
may give strong return in future.

Adani Ports (Rs.334.00) (Code: 532921)

:- Marine and Ports & Service company


was set up in Gujarat in 1998 as Gujarat Adani Port Ltd. It started commercial operations in 2002.
It got merged with Gujarat Adani Port got merged with Adani Port Ltd. It got approval as multi
product SEZ from Government of Gujarat in 2006. In 2010 the company converted shares of Rs10
into shares of Rs2 each. In FY2014-15, the company recorded net profit of Rs2183 crore on
turnover of Rs3909 crore with operating profit margin at 85.58% and net profit margin of 55.84%.
In June quarter the company's consolidate profit surged by 13% to Rs641 crore while net sales
went up by 40% at Rs1740 crore, EBITDA went up by 39% at Rs1145 crore and margins went up
by 50% to 65.5%. The company has also obtained huge orders for Vizhinjam International
Deepwater Multipurpose Seaport Project.

Escorts (Rs153.00) (Code: 500495) :-

The compay was set up in 1944 by the Nanda


Family. It manufactures tractors and other engineering products. However, the group has failed to
create long term wealth creation for the investors. Many company's entered into the sector very
late but managed to overtake the company. Now the new generation is at the helm, so the company may witness turnaround. In June quarter the company's topline decreased from Rs1129.11
crore to Rs977.74 crore, while profit increased from Rs34.11 crore to Rs36.27 crore with achieving EPS of Rs3.04. the company's equity is 119.28 crore in which the promoters hold 43.01%, FII
hold 7.58%, DII hold 1.63% and public hold 47.78% stake. The promoters have increased their
stake by 1.04% between March 2015 and June 2015, which is positive for the company. The
company may bet benefit from the government's plans to invest big time in railway and infrastructure activities. It may witness new 52 week high in short term.

SMART

17th August to 23rd August 2015

INVESTMENT

Chart Buster

By Talaksi Gosar
(Mumbai)

Multiple negative factors shave Sensex deep under skin


A likely interest rate-cut outside policy meet to rescue markets
Already under severe selling pressure due to subdued corporate number season, uneven and
scanty monsoon rains, failure of the Parliament in clearing the crucial economic reforms bills and
firming up of a possibility of the Federal Reserve hiking interest rate, the Indian stock markets fell
head-long when People's Bank of China, the Chinese central bank, unexpectedly devalued the
Chinese currency, Yuan, twice in the last week. The news of devaluation of the Yuan sent the
global stock markets down. The Indian stock markets fell head-long as they were more prone to
such vagaries due to selling by the FIIs.
The BSE Sensex, the most popular share market indice lost 696 points even after it closed
higher by 37 points on Thursday, the last day of trading, before this article going to print. The
Sensex not only fell by 696 points, it also broke below the crucial 28K mark.
The weakened closing on the previous week's Friday did not come in the way of the markets
opening higher on Monday. The markets staged a normal rally during intraday and ruled above
the previous day's closing till about half-an-hours of time was to pass. In the last hour of trade on
Monday a sudden wave of selling emerged that drowned the markets below their previous closings as it was reportedly a "basket selling" by a certain FII who had some an advance knowledge
of Chinese central bank's move of devaluing of Yuan.
The basket selling also weakened the Indian currency as demand for dollar had increased. It
was weakness in the rupee and the weak earnings besides rising non-performing assets, that took
a toll on the markets. Besides, the continuing logjam over the GST bill and on-going protest by the
Congress, also dampened the market sentiment. The government tables the GST Bill in the
Rajya Sabha where ruling party members are in minority in numbers, the Congress party intensified its protest leaving little scope of it getting cleared even in the current monsoon session which
was scheduled to be over on Thursday. The government of China devalued its currency, Yuan,
sent the rupee value further down. The depreciated Yuan would attract cheap imports of Chinese
goods in India and especially Tyres, it was feared. The quarterly results as announced by the
State Bank of India too were a major factor to have taken huge toll.
The Chines central bank, The People's Bank of China, allowed Yuan to depreciate almost two
per cent against the dollar to levels last seen three years ago, sending a shock through the currency markets.
The markets saw sharp cuts for third straight day on Wednesday as bear rampaged Dalal
Street as China devalued Yuan once again and logjam in Parliament continued making investors
more nervous. The further devaluation of the Yuan only added to further depreciation in the rupee
wiith the Indian currency hitting a 2-years low in trade. The rupee edged closer to 65 to a dollar
mark and added to the sell-off. The technology stocks and steel shares however, made good profit
in an otherwise downbeat market, as the devalued rupee would bring in higher values for IT
companies whereas steel import duty was instantenously hiked by 2.5 per cent to safeguard
against cheaper yuan.
On Thursday, the last day of trading before this article going to the press, the markets consolidated a bit and the Sensex gained a paltry 37 points to only curtail the huge weekly loss to a less
huge loss. The BSE benchmark during this week fell well below 28K mark and reached a weekly
low of 27479 before closing at 27543 on Thursday.

SMART
INVESTMENT

17th August to 23rd August 2015

Although the markets stopped falling further on Thursday, they are unlikely to reverse nearterm trend from bearish to bullish as the issue of the devaluation of the Chinese currency is not an
easier to be countered except the Indian government takes swift actions agaist cheaper imports
from China and the Reserve Bank of India shows courage to cut interest rate outside policy review
and beforehand. However, the Government of India instantaneously raised import duty on steel
immediately after the Yuan was devalued and that had helped steel company shares to stage a
small rally too, though for a shortwhile. The finance ministry officials have already urged RBI to
lower interest rates immediately to counter the iff-effects of the devalued Chinese currency. The
inflation rate has also come down and a rate-cut is the utmost need of the hour and therefore, a
positive announcement could be expected soon in this regard, till then the short-term traders
must see that the Sensex solicits support at 27415 in the first stage and if this is broken, then at
27210 is the most crucial support points.
Symphony Ltd. :- Symphony Ltd. is the largest player in the air-cooler market in India. Its
share always remains in an "over-priced" state and rules ahead of whatever positive factors that
might emerge. It was therefore, due to this very reason, it had scaled to a high of Rs 3270 on April
21, 2015. However, a market fall then prompted this scrip also to fall and by May 8, it fell to a low
of Rs 1845. Such a sharp and huge fall in its price obviously attracted buying that helped it to rise
upto a high of Rs 2575 by May 28. The share then came under selling pressure once again and fell
to a low of Rs 1685 by July 10. Since the markets remained subdued, the share thereafter lifted its
bottoms but could not enter a rising trend and instead fluctuated within a rane until Thursday of the
last week when it formed a low of Rs 1649.05, nearly identical to the preceding two bottomes
described herein above, but jumped up to a high of Rs 2129 on Thursday before closing at Rs
2057.50. Thus, the spark on Thursday is most likely to ignite further rally in the scrip and therefore,
it is recommended for buying whenever available at low levels due to technical factors.
Power Grid Corporation :- Power Grid Corporation had bottomed out at Rs 129.75 on
December 18, 2014, and then rallied to a high of Rs 159 by February 28, 2015. It then attracted a
technical correction and fell to a low of Rs 143.45 by March 27. A fresh rally that helped it to rise
upto a high of Rs 155.70 by April 13 and this being a lower top against the previous one at Rs 159,
a double top pattern was formed on its chart that pushed it into a bearish grip. The share therefore
corrected upto a low of Rs 135.55 by June 29. A tripple top formation with third top being at Rs 144
on July 23 was formed when the share had once again rallied and therefore it fell to a low of Rs
135.60 and thereby a double bottom pattern was also formed. After having fallen to a low at
around Rs 135 the share went up and down again but not below Rs 135 in any of the last three
trading days in which it sustainingly received supprt at this low before it rose to a high of Rs 138.35
on Thursday before closing at Rs 137.90 and thereby indicated a possibility that its is now ready to
rise in the days to come provided the market-trend suppots.
Coal India :- Coal India share had bottomed out at Rs 331.60 on October 13, 2014, before
entering the uptrend and reached a high of Rs 447.25 by August 5, Wednesday of the previous
week. However, after rising to a level that attracted selling in the form of profit-booking in this scrip
reversed its trend from bullish to bearish and it then started to going down every day thereafter
and fell to a low of Rs 363.00 by Wednesday of the last week. After having fallen so steeply and
swiftly, the share on Thusday solicited buying support and closed at Rs 377.10, higher than the
previous day's closing of Rs 371.45 and thereby appeared to have ended the slide. The share is
therefore, suggested for buying for long-term investment.

SMART

17th August to 23rd August 2015

INVESTMENT

Stock Wave

Sarvesh Ashok Trivedi


(Mumbai) (Mob) 09820728124

www.chartsanketstock.com

Nifty Future may get important


support at 8331 and 8330
BSE Index (27549.53)

:- After going to 28417.59 on upward movement, the index is


moving down. It shows oversold position on daily basis, overbought to neutral on weekly basis
and towards neutral on monthly basis. On upward movement, beyond 27851 and 27910 while will
get resisting level at 28205. On downward movement, below 27416 shows weakness with support
at 27416 and 27318.
Nifty Future (8381.00) :- It is moving down from top of 8647.90. It shows oversold position on daily basis, overbought to neutral on weekly basis and towards neutral on monthly basis.
On upward movement, beyond 8445 it may go up to 8461, 8475 and 8560. On downward movement, below 8331 it may go down to 8300 and 8266.
Bank Nifty Future (18243.00) :- From top of 19194 it is moving down. It shows oversold
position on daily basis, overbought to neutral on weekly basis and towards neutral on monthly
basis. On upward movement, beyond 18410 it may go up to 18595, 18630. Don't have bearish
trend beyond this. On downward movement, below 18050 it is coming down 17915 and 17850.
Jubilant Food (1764.35) :- It is moving down from top of 1946.30. It shows oversold
position on daily basis, whileoverbought position on weekly and monthly basis. On upward movement, beyond 1777 it may go up to 1815 with resisting level at 1855. On downward movement,
below 1735 it may go down to 1700, 1665 and 1630.
Bajaj Auto (2468.00) :- From top of 2656, it is moving down. It shows towards oversold
position on daily and weekly basis, while overbought position on monthly basis. On upward movement, beyond 2525 it may get resisting level at 2563. On downward movement, below 2422 it may
go down to 2377 and 2330.
CESC (587.95) :- From bottom of 560.15, the stock is going up. It shows towards oversold
position on daily basis, while neutral position on weekly and monthly basis. On upward movement,
beyond 598 it may go up to 610 and 613 to 624. On downward movement, below 580 it may get
support at 572.
Reliance (933.35) :- The stock is moving downward from top of 1067.85. It shows oversold
position on daily and weekly basis, while towards overbought position on weekly basis. On upward movement, beyond 943 it may get resisting level in range of 957 to 971. On downward
movement, below 839 it may go down to 915, 900 with support at 890.
SBI (259.30) :- It is moving down from top of 291.80. It shows oversold position on daily
basis, overbought to neutral position and oversold position on monthly basis. On upward movement, beyond 266 it may go up to 271, 280 with resisting level at 283. On downward movement,
below 258 it may go down to 255 with support at 249.
disclosure : The Recommendations are based on technical analysis. There is a risk of loss in trading.

-: Golden quote :The Measure of who we are is what we do with what we have

SMART
INVESTMENT

Dilip Davda
e-mail
dilip_davda@rediffmail.com

17th August to 23rd August 2015

10

Best Buy

Experts Eye

Axiscades Engg.,
HPCL
J.K. Tyre

China wall in the form of


"Yuan Fall" eclipsed
FY16 Q1 result season is almost over and the average performance has not shown any remarkable growth. Thus market has remained static for a while, however, global cues have surmounted coupled with logjam at Parliament in Monsoon session failing to do any business kept
the investors across the board on their toes. China's surprise shock in the form of devaluation of
its currency Yuan made a big dent leaving one and all busy with its likely impact on Indian economy.
From the market behavior for the week, it appeared as if China wall in the form of "Yuan Fall" has
eclipsed the market sentiment for a while overshadowing improved IIP and eased CPI at 3.78%.
During the week BSE Sensex and NSE Nifty moved in the range of 28417.59-27479.43 and
8621.55-8337.95 respectively.
Secondary Market :- Although indices opened on Monday on a firm note, but failure of passage for GST bill and China issue kept a check on market that underwent profit booking post noon
and finally closed in red. BSE Sensex closed at 28101.72 with a loss of 134.67 points and NSE
Nifty ended the day at 8525.60 with a deficit of 39.00 points. Metal, Oil and Gas took the lead for
doom. Power, Banking and Capital Goods too participated in the slide. Mid and Small cap counters
too witnessed heavy selloff as Q1 number season was coming to an end. FII remained net sellers.
Divi's Lab announced surprised bonus in the ratio of 1 share for every 1 share held.
On Tuesday markets opened in green with positive trends but failed to sustain gaining momentum as profit booking post noon continued on China issue coupled with Eurozone crisis and logjam at Centre on passage of important bills. BSE Sensex marked deficit of 235.63 points to end
the day at 27866.09 and NSE Nifty lost 63.25 points to close at 8462.35. China's shock in the form
of 2% devaluation in Yuan against US dollar brought selling spree. Banking, Auto, Metal counters
bleeded on hammering. Mid and Small cap counters too participated in the doom. Below expectation results from SBI and Tata Steel played a spoil sport. FII remained net sellers. Alpine Housing
announced bonus in the ratio of 1 share for every 1 share held. Syngene Intl got listed on BSE/
NSE and quoted above the offer price at around 20% premium, bringing cheers for primary market
investors. Pecos Hotels got listed on BSE SME and quoted above offer price. PMPL IPO surprised with over 38 times oversubscription after first two day's dismal response.

Bonus meets
Centron Industrial : 14-8-15
Pincon Spirit : 26-8-2015
Bonus Announced
Divis Lab (1 : 1)
Alpine Housing (1 : 1)
Fairdeal Filament (1 : 10)

Dividend Announcements
FTIL (250%), Sun Pharma (300%), ADF
Foods (15%), Aurobindo Pharma (50%),
Bodal Chem (10%), Cosco India (10%),
Vidhi Dyestuff (20%), Hinduja Global
(50%), Kaveri Seeds (125%), Mayur Uni
(16%), Symphony (500%),

SMART
INVESTMENT

17th August to 23rd August 2015

11

Indices opened with divergent trends on Wednesday but kept sliding as China devalued its
currency Yuan that brought panic for India on trade pact and commodity aspects. BSE Sensex
lost 353.83 points to close at 27512.26 and NSE Nifty marked deficit of 112.90 points to end the
day at 8349.45. IIP for June 15 at four month high and eased CPI both at 3.78% failed to bring
cheer for market. Rupee marking last two year's low at Rs. 64.94 a dollar forced operators to press
sell button. Logjam on GST bill at centre also prompted FIIs to plan exit. Banking, Auto, Power,
Metal, Capital Goods lead the doom and also attracted heavy sell off in Mid and Small cap counters.
FII remained net sellers with heavy offloading. Mangalam Seeds got listed on BSE SME and
quoted above the office price at around 10% premium.
With higher opening on Thursday indices marked volatile move and finally managed to close in
green. BSE Sensex scored 37.27 points to end the day at 27549.53 and NSE Nifty marked gain of
mere 6.40 points to close at 8355.85. With high volatile trades market witnessed surge in Auto and
Pharma counters while Metal kept sliding. After firm positive start, market just managed to close in
green with heavy weights surge. Mid and Small cap counters remained dull. Good numbers for
FY16 Q1 helped surge in counters like Aurobindo, SCI, Tata Power, Abbott etc. and decline in
counters like Kaveri Seeds, Page Ind, Max India etc on poor results. Fairdeal Filament announced
bonus in the ratio of 1 share for every 10 shares helod.
On Friday markets opened on a firm note and continued to surge on short coverings as three
settlements were being clubbed together due to intervening bank holidays. BSE Sensex scored
517.78 points to close at 28067.31 and NSE Nifty mirrored similar sentiments with a rise of 162.70
points to end the day at 8518.55 and thus both benchmarks closed the week at respectable levels
of 28K+ and 8.5K+ respectively. Realty and IT counters lead the rally and got support from counters
like MEP Infra, Adani Ports, Hindalco, Amara Raja, Reliance Capital etc. However, PSU OMC
counters eased on firming dollar. Market breadth turned positive. Although market scored for last
two sessions, it fell short of recovering the first three day's losses.
Indices marked net weekly LOSS of 169.08 and 46.05 points in Sensex and Nifty respectively
on global cues and logjam at centre on domestic front.
During the week Dividend announcements came in from FTIL (250%), Sun Pharma (300%),
ADF Foods (15%), Aurobindo Pharma (50%), Bodal Chem (10%), Cosco India (10%), Vidhi Dyestuff (20%), Hinduja Global (50%), Kaveri Seeds (125%), Mayur Uni (16%), Symphony (500%)
etc.
Rupee marked sharp fall to be at Rs. 65.11 a dollar that dampen the sentiment and overshadowed eased Crude Oil. Thus expectation of further petro product price cut hinges on Rupee/Dollar
parity now. Now all eyes are on Monsoon progress and the development at the centre on important bill's passage. If this does not happen, it will have cascading impact on the sentiment going
forward and may have danger of downgrading of India's rating. First three sessions of ensuing
week will be highly volatile as intervening bank holidays have resulted in clubbing of pay-in for
three sessions i.e. 14th, 17th and 18th for 20th and no BTST for purchases for 14th and 17th.
Under the given scenario, BSE Sensex may move in the range of 28550-26750 and NSE Nifty
between 8650-8150.
Bonus meets convened on 14.08.15 by Centron Industrial and 26.08.15 by Pincon Spirit.
Scrip Watch :- Following scrip may be monitored for strategic investment ideas for medium to
long term.
Axiscades Engg. (BSE Code 532395) :- This engineering design service sector
company has (on a consolidated basis) posted net profit of Rs. 6.19 crore on a turnover of Rs.
86.13 crore for the FY16 Q1 against net profit of Rs. 3.66 crore on a turnover of Rs. 71.82 crore for
corresponding previous period. For the fiscal 2014-15 it posted in net profit of Rs. 19.41 crore on
a turnover of Rs. 317.59 crore. As on 30.06.15, equity capital of Rs. 13.61 crore is supported by
free reserves of Rs. 117 crore plus. Scrip may be considered at declined level for medium to long

SMART

17th August to 23rd August 2015

INVESTMENT

12

term. It currently quotes around Rs. 271.60 against 52 week High/Low of Rs. 396/107, FV Rs. 5.
HPCL (BSE Code 500104) :- This downstream petroleum product PSU has posted net
profit of Rs. 1588.04 crore on a turnover of Rs. 51803.26 crore for the FY16Q1 against net profit of
Rs. 46.04 crore on a turnover of Rs. 59237.48 crore for corresponding previous period. Thus it has
shown improvement in bottom line. For the fiscal 2014-15 it has posted net profit of Rs. 2733.26
crore on a turnover of Rs. 206626.19 crore. As on 30.06.15, equity capital of Rs. 338.63 crore is
supported by free reserves of Rs. 17270 crore plus. Scrip may be considered at declined level for
long term. It currently quotes around Rs. 873.85 against 52 week High/Low of Rs. 991/410, FV Rs.
10.
JK Tyre (BSE Code 530007) :- This tyre and rubber product company has (on a consolidated basis) posted net profit of Rs. 118.12 crore on a turnover of Rs. 1777.18 crore for the
FY16 Q1 against net profit of Rs. 55.44 crore on a turnover of Rs. 1864.16 crore for corresponding
previous period. For the fiscal 2014-15, it has posted net profit of Rs. 329.66 crore on a turnover of
Rs. 7383.71 crore. As on 30.06.15, equity capital of Rs. 45.36 crore is supported by free reserves
of Rs. 1470 crore plus. Scrip may be considered at declined level for medium term investment. It
currently quotes around Rs. 106.70 against 52 week High/Low of Rs 163/52, FV Rs. 2.
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 )

Last Week Sensex, Nifty Moves


S&P BSE
10/08/2015
11/08/2015
12/08/2015
13/08/2015
14/08/2015

Open
28,250.78
28,193.26
27,880.76
27,635.25
27,668.06

NSE - Nifty
10-Aug-15
11-Aug-15
12-Aug-15
13-Aug-15
14-Aug-15

Open
8577
8548.45
8445.7
8384.45
8402.35

High
28,417.59
28,205.12
27,883.33
27,791.10
28,100.64
Net
High
8621.55
8556.25
8446.95
8429.5
8530.1
Net

Low
28,017.85
27,825.83
27,479.43
27,496.29
27,643.20
Weekly
Low
8497.8
8441.3
8337.95
8339.75
8381.2
Weekly

Close
28,101.72
27,866.09
27,512.26
27,549.53
28,067.31
Loss
Close
8525.6
8462.35
8349.45
8355.85
8518.55
Loss

Diff
-134.67
-235.63
-353.83
37.27
517.78
-169.08
Diff
-39
-63.25
-112.9
6.4
162.7
-46.05

SMART

17th August to 23rd August 2015

INVESTMENT

13

Q1 analyst of last three years


The latest aggregated results of companies for Q1-FY16 is presented below.
While the sample size is still not very large, one can sense the trends that will
emerge when a larger sample becomes available.
Q1-FY14 Q1-FY15 Q1-FY16
Net Sales
367,005 418,557 387,590
Expenditure
321,585 365,315 328,557
Interest
9,291 10,024 10,397
PBT
36,514 47,178 47,650
Profit after tax
27,396 36,626 36,051
Net profit margin
7.46
8.75
9.30
Interest cover
4.93
5.71
5.58

Q1-FY15 Q1-FY16
14 % -7.4 %
13.6 % -10.1 %
7.9 % 3.7 %
29.2 %
1%
33.7 % -1.6 %
-----

191 Services (excluding banks)


Growth in sales and profit for the services sector has also slowed down
though remaining positive. This includes NBFCs and IT companies.

Interest income
Interest Exp.
Net Profit
Gross NPA
Total advances
NII
Gross NPA ratio

Q1-FY14 Q1-FY15 Q1-FY16


123,567 139,637 152,519
84,735 96,341 104,346
14,613 15,741 14,149
113,747 147,057 203,573
3,662,375 4,209,885 4,685,558
38,832 43,296 48,172
3.11
3.49
4.34

Q1-FY15
13 %
13.7 %
7.7 %
29.3 %
14.9 %
11.5 %

627 Companies (Manufacturing)


The manufacturing companies have
witnessed decline in both sales and net
profits this quarter. Growth in interest
costs has slowed down however

Q1-FY14 Q1-FY15 Q1-FY16


NetSales
102,685 116,676 128,347
Expenditure
64,299 71,830 79,240
Interest
14,741 16,366 19,057
PBT
22,216 28,805 29,487
Profitaftertax
16,582 21,433 21,883
Netprofitmargin
16.15
18.37
17.05
Q1-FY16
9.2 %
8.3 %
-10.1 %
38.4 %
11.3 %
11.3 %

Q1-FY15 Q1-FY16
13.6 %
10 %
11.7 % 10.3 %
11 % 16.4 %
29.7 % 2.4 %
29.3 % 2.1 %

29 Banks
Banks have reported lower growth in
sales(interest income) though decline in
profit. NPAs have increased to a high in
last 3 years. (sample does not yet have
SBI)

SMART
INVESTMENT

17th August to 23rd August 2015

14

Scrip Watch
AB Nuvo (Rs. 2266.00) (Code : 500303)

: Aditya Birla Nuvo is a well diversified


company and has posted a good set of numbers for Q1Fy16. Consolidated revenue rose 10%
(YoY) at Rs.6820 crore and net profit was up 50% at Rs.397 crore. EBITDA for the quarter came
in at Rs.1671 crore, up 31%.The biggest revenue contributors are telecom, which is essentially
Idea Cellular at 30% and financial services (insurance included), also at 30%. It Fashion & lifestyle
business has two formats Pantaloon and Madura and together they showed a 14% rise in
revenue and 37% jump in EBITDA. Madura remains the biggest contributor here. Idea did very
well, with a subscriber base of 166 million active subscribers and third largest telecom company
with a revenue market share of 18.2%. Its revenue rose 16% and EBITDA was up 32%. In manufacturing segment (Includes Jaya Shree, Indo-Gulf Fertilisers, Indian Rayon and Aditya Birla
Insulators), which comprises of agri, rayon and insulators with a 16% rise in revenue and 41%
jump in EBITDA.The company also plans to fund the growth capital requirements of the Financial
Services business to the tune of Rs.600 crore. The company has recently forayed in the Solar
Power business which will also require equity funding to bid for upcoming projects. Buy.
Ramkrishna Forging (Rs. 703.00) (Code : 532527) : Ramkrishna Forgings
(Ramkrishna) reported 1QFY16 results with significant beat at EBITDA level, while revenue was
in line with expectation. The companys strong order book position along with start of commercial
production at a new large press 12,500T (constitutes 45% of the new capacity) in 2HFY16 would
have strong financial visibility for the the next two to three years. The company expects further
order book strengthening in the coming quarters as it recently received $30mn orders from overseas OEMs. Higher share of exports coupled with richer product mix to boost realisation and
margins in both FY16 and FY17. Most analysts maintain a positive stance on Ramkrishna as
valuations remain reasonable compared to peer group. The stock is worth accumulating at this
level.
GSK Consumer (Rs. 6290.00) (Code : 500676) GlaxoSmithkline Consumer
Healthcare Ltd on Wednesday reported a 19% rise in profit to Rs.155.01 crore for the April-June
quarter as total income from operations grew by 8.18% to Rs.1,045 crore.The company, which
sells Horlicks and Boost health foods, reported net profit at Rs.130.12 crore in the year-ago quarter with total income from operations at Rs.965.97 crore.GlaxoSmithkline Consumer Healthcares
net sales from operations stood at Rs.990.31 crore in quarter ended 30 June, a 7.46% increase
from Rs.921.55 crore reported during the corresponding quarter previous year.n FY16, analysts
expect revenue and net profit to grow 10.5 per cent and 18.6 per cent, respectively, aided by
strong operating performance. Benign input costs is likely to drive an Ebitda margin expansion to
about 19 per cent, estimate analysts.Accumulate at every decline.

SMART
INVESTMENT

17th August to 23rd August 2015

15

Market Tips
Cyient (Rs. 535.00) (Code : 532175) : This engineering, data analytics, network and
operations solutions firm was earlier known as Infotech Enterprices. Cyient has seen 26% annualised
earnings growth in the past five years. Due to a strong deal pipeline, synergies from acquisitions
and improving market conditions, Cyient's performance has improved considerably in the past two
years. It also has a cash balance, including liquid investments, of Rs 626 crore, which it will
employ towards acquisitions.Cyient's acquisition of Global Services Engineering Asia from Pratt &
Whitney Services is expected to be completed by end-August. It will increase Cyient's earnings
per share. Meanwhile, it has reported 9.2 per cent rise in net profit at Rs 74.8 crore for the quarter
ended June, 2015. It saw its revenues rising 16.8 per cent to Rs 726.2 crore in the said quarter
from Rs 621.7 crore in the corresponding quarter last year. The company added (gross) 697
people and 26 customers during the quarter. Its attrition rate increased to 18.8 per cent from 15.3
per cent on sequential basis. Among geographies, Americas accounted for 44.6 per cent of the
revenues; Europe, Middle East, Africa & India contributed 37 per cent and Asia Pacific contributed
18.4 per cent, respectively.The stock has corrected a bit in last one month. Now, as the rupee has
depreciated against the dollar, the company will benefit in near future. Buy. Buy more at decline.
Aarti Industries (Rs. 431.00) (Code : 524208) : Aarti Industres is a diversified
speciality chemicals company. 84% of its revenue comes from speciality chemicals. It is expected
to continue its good performance.Aarti Industries has been giving a 2%-plus return on earnings for
the past several years and this will continue.There are several factors that show the company's
promise.First, the demand for speciality chemicals in India is rising and is expected to grow at
around 15% in the coming years. To benefit from the demand potential, Aarti Industries is looking
to invest around Rs 420 crore between 2014-15 and 2016-17 to expand capacity. Quite importantly, the counter has started attracting institutional players because of its performance. Also, the
company's market capitalisation reached Rs 3,700 crore, which is quite reasonable.The stock has
jumped to Rs.425 level from Rs.250 a year ago. Still, it is one of the best bet in mid-cap segment.
Cummins India (Rs. 1177.00) (Code : 500480) : Cummins India stock has seen
strong rally in recent days. The stock has spiked to Rs.1200 plus level from Rs. 850 in just three
months. Cummins India posted a marginal decline of 0.59% in its net profit to Rs 210.73 crore
during the quarter ended June 30, 2015 against Rs 212 crore posted over the same period last
year.However, company's total income has grown up 25.75% to Rs 1,314.31 crore during the
quarter as compared to Rs 1,045.14 crore in the same period last year. Cummins has no long term
or short term debt, thus there is no interest burden. Power Generation business grew 23 percent
over the previous quarter as company improved market share. The Industrial business was flat
quarter on quarter, but has grown 22 percent based on improving government led infrastructure
investments. The Company has recorded strong growth in export revenues particularly for low
kVA generators. Domestic sales grew 17% as compared to the same period last year and 14%
compared to the prior quarter. Exports increased 36% as compared to the same period last year
and 16% compared to the prior quarter.Accumulate at every decline.

SMART

17th August to 23rd August 2015

INVESTMENT

16

SMART TIPS
Redington India (Rs. 117.00) (Code:

532805)

:- The shares of this A group


listed company have a face-value of Rs. 2. The share touched a high of Rs. 147 and low of Rs. 46
in the last 52 weeks. Earlier, the company used to provide integrated supply chain solutions as a
Blackberry distributor. However, slowdown in personal computer and laptop segment had impacted its profits. For the June quarter, it reported turnover of Rs. 2,800 crores, profit of Rs. 42
crores, and EPS of Rs. 1.05. The company is expected to benefit from low smartphone penetration, which is expected to shoot up in the coming days. Trading at 23 times the estimated earnings
for the year, the stock can deliver good returns in the medium to long term.

Navneet Education (Rs. 96.00) (Code: 505989) :- The company is based in


Ahmedabad and is considered a pioneer in education publication. The shares are listed in the B
group and have a face-value of Rs. 2. Besides educational books, it also sells general & children's
books and stationery products. It has 65% market share in Western India and is gearing up to
enhance presence in other states. For the June 2015 quarter, it had turnover of Rs. 516.28 crores,
net profit of Rs. 98.39 crores, and EPS of Rs. 4.13. Promoter holding in the company is 61.80%,
FIIs hold 3.05%, DIIs hold 15.05%, and public holding is 20.10%. The stock is likely to touch Rs.
150 levels in the coming two to three quarters.
Makers Laboratories (Rs. 88.00) (Code: 506919) :- Makers Lab is a producer of
branded generics and a fast-growing pharma company. Its shares are listed in B group and have
face-value of Rs. 10. Its top formulation brands include Duramol (paracetamol), Artemak AB (BArtheeter), Loroquin (chloroclin), Nimuwin, Coffwin (anti coughrage), and Exylin (Amoxycillin range).
The company has strong pan-India presence. In the first quarter of 2016, it has registered 135%
rise in net profit at Rs. 1.32 crores, while sales rose 3% to Rs. 17.41 crores. Company's equity is
Rs. 4.92 crores, net-worth Rs. 25 crores, and has market cap of Rs. 44 crores. The stock is trading
at a PE multiple of only 14, which is lower than its peers. The stock can be seen at Rs. 140 levels
in next 2 - 3 monts.

GSPL (Rs. 129.00) (Code: 532702)

:- Promoted by GSPC, Gujarat State Petronet


Limited is owned by the Gujarat government. The shares of this A group listed company have
face-value of Rs. 10. The share touched a high of Rs. 141 and low of Rs. 83 in the last year. It is
engaged in natural gas transmission pipeline projects. The stock has risen sharply in the last one
quarter. It reported strong numbers for the June quarter. Net sales rose 11% to Rs. 266 crores,
while net profit jumped 33% to Rs. 112.76 crores. Operating profit margin was 91.81%, while net
profit margin was 43.51%. Promoter holding in the company is 37.71%, FII holding is 11.28%, DII
holding is 33.46%, and public holding is 17.55%. The company's net-worth is Rs. 3,295 crores,
market cap is Rs. 7245 crores, and it has debt of Rs. 1,036 crores. The stock looks set to deliver
30 - 35% return in the next two to three quarters.

SMART
INVESTMENT

17th August to 23rd August 2015

17

Smart super duper


Ashok Layland (Rs.88.00) (Code: 500477)

:- The commercial vehicle manufacturer company's share witnessed a 52 week high at Rs90.4 and law at Rs33.3. The company
made profit for last four quarters. The company witnessed losses of Rs48 crore in June 2014,
profit of Rs120.69 crore in September 2014, profit of Rs32.09 crore in December 2014, profit of
Rs229.97 crore in March 2015 and profit of Rs159.32 crore in June 2015. In June quarter the
company's income increased from Rs2477.80 crore to Rs3841.22 crore while profit increased
from Rs47.98 crore to Rs159.32 crore with EPS of Rs0.56. the company's sales is increasing per
month. The promoters hold 38.82%, FII hold 20.21%, DII hold 12.35% and public hold 28.62%
stake in the company. The stock prices may be in three digits in near future.

Sadbhav Engg (Rs314.00) (Code:532170)

:- Ahmedabad-based company operates in road, highway, bridges construction, irrigation, support infrastructure and mining sector. In
June quarter the company completed 4 BOT and one irrigation projects and also got new orders
worth Rs1136 crore as a result the company's order book crossed Rs10000 crore. In June quarter, the company's income increased from Rs685.51 crore to Rs829.29 crore, while profit increased
from Rs26.99 crore to Rs39.48 crore. The company's equity is just Rs17.15 crore in which the
promoters hold 47.11%, FII hold 15.87%, DII hold 25.03% and public hold 11.99% stake. As the
company's balancesheet is strong, the DIIs have been very bullish on the stock from the beginning. The stock is witnessing strong consolidation for quite some time. One of the group companies is coming up with IPO next month. The funds have set target of Rs500 in long term.

Kalpataru Power (Rs261.00) (Code: 522287)

:- One of the leading power transmission companies of India is also active in other segments. The company has bagged new
orders at high profit margin which may improve the company's bottom line. In FY2015, the company's
income increased from Rs7090.29 crore to Rs7198.21 crore, while profit increased from Rs122.21
crore to Rs120.36 crroe. In June quarter the company's income increased from Rs1063.38 crore
to Rs1169.61 crore, while profit increased from Rs41.86 crore to Rs48.41 crore with EPS of Rs3.15
crore. The company has more than Rs8000 crore orders on hand. The company's 60% orders are
from foreign countries. The company's rival Jyoti is getting weaker so the orders are coming
towards Kalpataru Power. As against equity of Rs30.69 crore the company has reserves of
Rs2185.57 crore. The company has filed DRHP for coming up with IPO of Shri Shubham Logistics. The stock prices may cross Rs300 level.

Motherson Sumi (Rs 337.00) (Code: 517334)

:- The Delhi-headquartered automotive component, module and system supplier's portfolio consists of encopresis electrical distribution systems, polymer product and complied module systems. It has its presence in 25 countries with 124 plants. The company enjoys investor friendly status with paying regular dividends.
The company's clients list includes Walks Wagon, Hyundai, General Motors, Tata Motors, Suzuki,
BMW, Renault, Nissan, Ford, Mercedes Benz, Volvo and Mahindra and Mahindra. The company
has paid bonus shares for seven times since 1997.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. In June quarter the company witnessed net profit of Rs163.73 crore on income of Rs9384.80
crore. 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.

SMART

17th August to 23rd August 2015

INVESTMENT

Diwan-E-Khas

18

A.J. Diwan (Mumbai)


E-mail : divanconsultancy@rediffmail.com

Now it's Chin Factor


Chin has capacity to bring quake in world markets. Last month there was biggest fall in china
market. The economy is under pressure. The government cut interest rate twice in last couple of
months. Now devaluation of currency.infact this has jitter world markets.
In India rupee became weak and surged above 65 in just two days. This has created panic over
and above our political problems.
Our parliament failed yo brings any results in the monsoon session.
The market was running good and we were all expecting nifty to cross 8600 level but due to
china and politics we are now below 8400 to at 8355.nifty has support at 8325 and resistance is at
8400.the trend will be decided at break of any this levels.
After announcements of data of inflation, there is an again hope of rate cut in India. Our governor is knowing that fall in inflation is only on paper. Moody's also said recently that bad monsoon
may awful growth of india.the expectation of rate cut in the forthcoming RBI meeting helped market to close positive after four days of fall.
The strengthen of dollar against rupee has forced bears to cover up short position in MCX
metals. On every fall zinc and lead and copper are good buy till rupee remains weak at 64.85.
International crude price showing fall in crude at MCX.
As expected there is buying in gold at lower level. We feel that gold may find difficult to sustain
above rs.26500.
After results and china factor Tata Steel declined. Now situation is such that even at Rs.225
value based buying may not emerged.
Tata group in bad shape in stock markets expect TCS.
NMDC has come out with very poor results. How government will offer disinvestment with 47%
fall in profit?
How SEBI is allowing proposal of buy back of just dial at rs.500 higher than market price?
There is some buying in cement shares at lower price for investments only.
Gujarat Ambuja export to benefit from higher dollar. We expect good results.
Market is expected to be highly volatile and caution is always for small traders.
In communication companied idea is better of all lot.

SMART

17th August to 23rd August 2015

INVESTMENT

Investment Ideas

19

- Pratit Patel (9998881112)


www.dkwealthadvisory.com

NIFTY (8514) :-

For next week nifty has strong support around 8460 level, break with
volume will take it to 8410---8350 level. On the upper side it has strong hurdle at 8565 level,
cross over with volume will take it to 8650---8710 levels.
Albert David (524075) (322) :- It is one of the oldest Pharma Company. Company has
equity of just Rs.5.71crore while it has huge reserve of Rs.85crore. Recently Company has reported much better Q1FY16 result. Net sales remain flat at Rs.84.93crore however net profit
zoomed 45% to Rs.2.79crore. Stock is trading at PE ratio of just 13. It is available with 55%
dividend. One can watch this stock keeping stop loss of Rs.295. On the upper side stock will zoom
up to Rs.350---370 or Rs.404 levels in coming days
INVESTMENT WATCH

On 15th June 2015, we had recommended GOLDIAM INTERNATIONAL @ Rs.26.40, last


week it zoomed to Rs.43 levels & stock has recorded almost 63% appreciation.

On 29th June 2015, we had recommended IVP @ Rs.56.35, last week it zoomed to
Rs.106.55 levels & stock has recorded almost 89% appreciation.

Stocks of the week

LKP Finance (507912) (91) :- What started as one of India's first securities brokerage
houses in 1948 is today one of the country's largest multi-dimensional financial services group.
The company offers its services through a network of approximately 2,300 outlets in India. Company has an equity base of Rs.12.20crore that is supported by reserves of around Rs.141.02crore
which is 11.55 times higher than the equity and has a share book value of Rs.129.77 and price:
book value ratio is just 0.75, which is highly impressive. The promoters hold 64.42%, FIIs hold
2.90% while the investing public holds 32.65% stake in the company. Promoters stake was 59.57%
after March 2015, which is increased to 64.42% after June 2015 means promoters have increased
their stake by 4.85% in just 3 months which clearly indicates that promoters are highly bullish for
bright future.
For FY15 LKP reported EPS of Rs.14.57 on sales of Rs.143.12crore. Now it has posted mindblowing numbers in Q1FY16. Net sales have increased 70% to Rs.34.10crore. Despite Rs.2crore
income tax against NIL, PAT has jumped by 175% to Rs.4.98crore. Q1FY16 EPS stood at Rs.4.08.
The scrip is trading at P/E multiple of just 5.5, which is cheapest P/E ratio in the brokerage sector.
Company is regularly paying dividend to its shareholders. It has paid 20% dividend for FY12FY13-FY14 while it has paid 120% dividend for FY15. At the current share price, this results in a
dividend yield of 12.70% which is highly impressive. Stock is looking explosive for investment.
Investors can buy this stock with a stop loss of Rs.75. On the upper side, it will zoom to Rs.125--130 levels in the medium term while stock may zoom up to its all-time high rate of Rs.239 in the
next 15---18 months.
Precision Wire (523539 & NSE) (140) :- Precision Wires India Limited produces and
sells copper winding wires in India and internationally. It serves large and medium electrical and
electronic equipment manufacturers. PWIL has three manufacturing facilities located at Silvassa,
Dadra Nagar Haveli and Palej, Gujarat.
Company has an equity base of Rs.11.56crore that is supported by reserves of around
Rs.175.28crore. Recently company has declared June Quarter result. Sales have remained al-

SMART

17th August to 23rd August 2015

INVESTMENT

20

most flat to Rs.222.89crore. Despite 71% rise in income tax, PAT has jumped by 54% to
Rs.4.22crore. Q1FY16 EPS stood at Rs.3.65. The scrip is trading at P/E multiple of just 14. Company is regularly paying dividend to its shareholders. It has paid 60% dividend for FY11, 30%
dividend for FY12, 40% dividend for FY13, 100% dividend for FY14 while it has paid 30% interim
dividend for FY15 & declares 25% final dividend for FY15 (Total 55% dividend for FY15). Stock
will be done x-dividend (25% dividend) from 19th August 2015. Company has also announced
Sub Division of Equity Shares from the existing face value of Rs.10/- per Equity Share to Rs.5/per Equity Share.
Stock is looking explosive for investment. Investors can buy this stock with a stop loss of Rs.125.
On the upper side, it will zoom to Rs.165--170 levels in the medium term while stock may zoom up
to its all-time high rate of Rs.208.75 in the next 12---15 months.

Disclosures: At the time of writing this article, author, his clients & dependent family
members may have positions in the stocks mentioned above. The author, his firm, his
clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested
interest obviously in their going up or down as the case may be.
Disclaimer: Investing in any equity is risky. Our recommendations are based on reliable
& authenticated sources believed to be true & correct, and also is technical analysis based
on & conceived from charts. Investors should take their own decisions. We assume no
responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by anybody.

TIPS OF THE WEEK

BUY.... BUY....BUY
Co. Name
KCP Ltd.
Uttam Galva
Linc Pen
NCC
Ashok Leyland
Adani Ports
J. K. Tyres
Indian Hume
Tata Chem.
PC Jew.
Wipro
Kalpataru Po.

Code
590066
513216
531241
500294
500477
532921
530007
504741
500770
534809
507685
522287

Price
78.00
40.00
169.00
77.00
88.00
360.00
107.00
378.00
469.00
365.00
573.00
266.00

Co. Name
NBCC
Talwalkars Be.
Tata Motors
I.B. Housing
Karuru Vysya
L&T
CEAT
Z. F. Steering
Glenmark PH.
Infosys
Nestle
Dr. Reddy

Code
534309
533200
500570
535789
590003
500510
500878
505163
532296
500209
500790
500124

Price
1021.00
269.00
355.00
793.00
490.00
1798.00
1048.00
1528.00
1132.00
1150.00
6288.00
4239.00

SMART

17th August to 23rd August 2015

INVESTMENT

MARKET TREND

21

NIKHIL BHATT
(+919979380808)
WWW.INVESTMENTPOINT.IN

PERIOD : 17-8-2015 to 21-8-2015

Nifty F&O Range @ 8308 to 8470 point in short term


Dear Friends,
NIFTY FO CLOSED @ 8404 AS ON 13.08.2015..!! NIFTY FO has resistance at 8424 - 8440
Level; above which other resistance levels are at 8464 - 8470 Level with highly Volatile Trend, In
Downside support levels are at 8371 - 8340 Level; below 8340 Level, other support levels are at
8319 - 8308 Levels. I am positive for next week above 8470 Level but be with the trend. Let the
market decide further moves. As we are saying from many days Buying is suggested in falls
only...and it's still a better strategy in the given Scenario...!!! Regarding long term positions, it is
preferable to remain cautious now...!!
If NIFTY crosses 8470 Level, again then the upper side target is quite high and it may touch
8484 Level in short term...!!!
Golden Stocks for the Period : 17-8-2015 to 21-8-2015

1. HDFC Bank (1084) : It is suggested to buy @ Rs 1077 with SL of Rs 1070 for the target
of Rs 1099 - 1108; below Rs 1066 it can fall up to RS 1057 - 1050 levels. If it crosses Rs 1118 level
than expect nonstop rally up to Rs 1122...!!

2. JSW Steel (860) : Operator based Game start in this stock, Buy @ Rs 855 With SL of Rs
848 for the target of Rs 878 - 890 level below Rs 848 it can show further downfall up to Rs 837!!!

3. Andhra Bank (71) : Buy delivery of this stock near @ Rs 68 with SL of Rs 63 for the
target of Rs 77 - 86 level. It is very good for medium term position also!!!
4. Torrent Power (165) : This stock is looking very good to buy @ Rs 160 with SL of Rs
151 for the target of Rs 173 - 181 Levels below Rs 145 is stock shall witness free fall!!!

5. Indian Oil Corporation (394) : Buy @ Rs 388 levels considering minor support of Rs
380 and stop loss of Rs 377 for an upper target of Rs 404 - 414 levels. Below Rs 377 it can slip up
to RS 370 - 366 levels!!!

6. Biocon (466) : Operator based buying has been there in this stock. Buy @ Rs 460 with
SL of Rs 454 for the target of Rs 474 - 482 levels it is very good for long term position also!!!

7. Adani Ports (334) : Trading point of view BUY @ Rs 328 With SL of Rs 320 for the
target of Rs 343 - 350 level below Rs 320 It can show further downfall up to Rs 313 ..!!!

8. Tata Power (69) : Buy delivery of this stock near @ Rs 63 with SL Rs 57 for the target
of Rs 74 - 83 level. It's very good for long term position also!!!

9. Bank of Baroda (176) : For medium term buying is suggested @ Rs 170 with SL Rs
166 for the target of Rs 183 - 193 level. Below Rs 157 it can show further downfall!!!

10. ACC (1364) : It is suggested to SELL with SL Rs 1371 for the target of Rs 1355 - 1347
below @ Rs 1347 it can slip up to Rs 1340 - 1334 level. Above Rs 1377 level will take the stock to
Rs 1383 - 1390!!!

SMART
INVESTMENT

Primary Market

17th August to 23rd August 2015

22

- Dilip K. Shah

In last calendar year 10 companies raised Rs4700 through IPO which is higher than previous tow years
SEBI gave nod to 24 companies for IPO till now
Last week one Mainline IPO and two SME IPOs got listed with more than 10% premium

Syngene's good listing and good response to Power Mech creates expectation of 'Good Days'
Last Week of August may witness of 4 main line IPOs making primary market vibrant

IPOs of Pennar Engg. likely to open on 26th, Prabhat Dairy on 28th Aug. & Sadbhav Infra on 4th Sept.
Navakar Corporation's Rs 600 crore IPO will open on August 24 Price Band Rs. 147 to 155
Shree Puskar Chem's Rs 70 crore issue will open on August 25 at rate of Rs61-65
This week Oyeeee Media and Universal Auto foundry 2 BSE SME IPO to hit Market

Smart Investment predicted it rightly: Syngene got listed on 11th at Rs195 and surged to 300+
Where and how will be refund, allotment and listing of Power Mech?
Mangalam Seeds and Pecos got listed at 10% premium on BSE SME IPO: This week Emkay to get listed
Government gives nod for 5-10% disinvestment in Coal India: will raise Rs2300 crore funds
Nizuvudi Seeds gets nod for IPO: alkem Lab, Mah. Logistics and ABD all set for IPO
One the one hand secondary market's volatility is increasing, while primary market is
giving indication for 'Achchhe Din'. One after another IPOs are getting listed at premium
rates improving sentiments of the investors and lure them back to the market.
In calendar year 2015, total 10 companies have raised Rs47,000 from the market which
is higher than last two years. More companies are ready to join the band wagon.
Last week three IPOs got listed of which one was Syngene International's mainline IPO
and other two were Pecos Hotels & Pubs and Mangalam Seeds SME IPOs. All three got
listed at premium rate and Syngene gave handsome return to the investors.
Power Mech Projects also got good response. Now announcements have been made
about Navkar Corporation and Shree Pushkar Chemical's IPOs.
Last week's IPO listing :Syngene International (539268) :- As against offer price of Rs250 the issue got listed at
Rs295 and went up to Rs318, coming down at Rs295 and ultimately closed at Rs310.40
giving 24% return. The stock prices went up to Rs316.40 on Friday. This is third good listing
after INOX Wind and VRL Logistics. Hold the stock for 4-6 months with target of Rs350.
We in 'Smart Investment' predicted it correctly that it will get listed on August 11 at rate of
Rs290-300 and will cross Rs310 level. Our prediction came true 100%.
BSE-SME IPO listing :Pecos Hotels & Pubs (539273) :- The issue with offer price of Rs50 got listed at Rs56

SMART

17th August to 23rd August 2015

INVESTMENT

Main - line IPO of Next Week


Sr Company
1.

Navkar
Corporation

Issue Open Dt.


Issue Close Dt.
24-8-2015

Issue size
(Rs. Cr.)
--

26-8-2015

Eq. Shares
* (Rs. 600 Cr.)

(Book Building)
2.

Shree
Pushkar Che.

25-8-2015
27-8-2015

Offer price
(Rs.)
147 to 155

61 to 65

(Non SME)

Min.
Rs. 1,00,00
Rs. 2,00,000 Listing
App.
Limit
Limit
95 Shares 570 Shares 1235 Shares BSE
Rs. 14725

23

Rs. 88350

Rs. 191425

MSE

200 Shares 1400 Shares 3000 Shares


Rs. 13000 Rs. 91000 Rs. 195000

BSE
NSE

Lead
Manager
Axis Cap.
SBI Cap.
Edelweiss
Keynote

Rating
%

Remark

NEXT WEK

NEXT WEK
Eq. Shares
(Book Building)
(Rs. 70 Cr.)
* Navkar Corpporation : Fresh Issue Rs. 510 Cr. by the Compnay & An Offer for sale of Rs. 90 Cr. by Siddhartha Corporation, A Member of Promoter Group

and then went up to Rs57.25 and came down to Rs53.25. It closed at Rs51 on Thursday.
Mangalam Seeds (539275) :- The issue with offer price of Rs50 got listed at Rs55 and
then went up to Rs57.75 and came down to Rs55 and ultimately closed at Rs 57.75. On
Friday the share closed at Rs55.20.
Last week's Issues:Power Mech Projects :- The issue that opened on August 7 got closed on August 11.
The issue with priceband of Rs615-640 got 38.12 times subscription: 27.5 times in QIB,
133.22 times in HNI and 3.42 times in retail.
Discovery price :- The discovery price could be fixed around Rs640.

Power Mech IPO Subscribed


No. Shares
Offered/
Reserved
QIBs
8,53,800
HNI
6,40,350
Retail 14,94,150
Total 29,88,300

Issue Subscribed
7-8-2015 10-8-2015 11-8-2015
0.00
0.01
0.13
0.07

0.12
0.16
0.77
0.45

27.53
133.22
3.42
38.12

Gray Markets Premium


IPOs Name Offer Price
(Rs.)

Premium
(Rs.)

Kostak Price
Min. Application

Power Mech 615 to 640


Navkar Corp. 147 to 155

103 to 105 Last Traded Rs. 600


35 to 36
950 to 1000

Don't subscribe IPO only on the basis of Grey premium.


Before Investing check the fundamentals of IPO

Grey Market Movement


Power Mech's IPO got 38 times response: Grey Market Premium touches Rs 105
Minimum Application rates between Rs 500-600
Players become active in last days of Power Mech taking premium and volume to new height
Last week Syngene International and Power Mech IPOs premium rates witness high volatility in grey
market. Syngene IPO premium rates came down to Rs40 and it went up to Rs43/45 on listing day and
grey market listing was also at Rate of Rs295 (250+45).
Power Mech :- The premium rates in the issue with price band of Rs615-640 came down to 50/52
before it opened but it went up steadily after the issue opened and now touched to Rs105 on news of 38
times subscription. However, the premiums have come down to Rs85/90 currently.
Along with this rates of minimum application for 20 shares also came down to Rs500 and then went up
to 600. Some of the players became very active in last day, therefore, the volume of the application forms
went up suddenly.
Navkar Corp. :- Grey Market becomes active as soon as company announced IPO opening. The
Premium rates deals started at Rs. 35/36. Minimum Application form were at Rs. 950 to 1000

SMART

17th August to 23rd August 2015

INVESTMENT

24

BSE SME IPO


Sr Company
1.
2.

Open Dt.
Close Dt.

Oyeeee Media
Ltd.
Universal
Autofoundry

Issue size
(Rs. Cr.)

Offer price
(Rs.)

13-8-2015

39,75,000 Eq.

Rs. 40

19-8-2015

(Rs. 15.90 Cr.)

19-8-2015

21,60,000 Eq.

21-8-2015

(Rs. 3.24 Cr.)

Minimum Applications

Rating

Minimum Application Size of


3000 Eq. Shares (Rs. 1,20,000)

Rs. 15

32 %

Remark
%

AVOID

40 % APPLY

Minimum Application Size of


8000 Eq. Shares (Rs. 1,20,000)

Refund/allotment :- Allotment may take place on August 20/21 and shares may get
deposited on August 24. Out of 272 retail applicants 100 applicants will get 20 shares, i.e.
out of 11 only 4 applicants will get 20 shares.
Listing :- It may get listed on August 25/26 at rate of Rs725-2740. And may cross Rs750.
Muthoottu Mini Finance :- The NCDs issue with base price of Rs1250 crore got 177%
means Rs2200 crore fund till August 13. The company has got approval for retaining Rs2500
crore so it still needs Rs210 crore. The issue will get closed on August 14 so it may achieve
the target.
Mainline IPO of upcoming week:Navkar Corporation :- Rs 600 crore will open on August 24 and close on August 26. In
this issue 50% shares (Rs300 crore) will be allotted in QIB, 15% (Rs.90 crore) in HNI and
35% (Rs210 crore) in retail category. IPO will get listed on NSE & BSE. Price Band Rs. 147
to 155. Lead managers are Axis Capital, SBI Capital and Edelweiss.
Shree Pushkar Chemicals :- Rs70 crore IPO will open on August 25 and close on
August 70. The offer price is Rs61-65. Key Note is lead manager.
SME Issues :Oyeee Media :- The issue will open on August 13 and close
on August 19 to offer 39.75 lakh equity shares at price of Rs40
to raise Rs15.90 crore fund. More details are given in a separate box.

IPO Registrar : Karvy Computers


Lead Manager : Hem Securities

Listing Information of
Syngene International
BSE Code
Listing Date
Offer Priced
Listing Price
Listing Day High
Listing Day Low
Listing Day Close
CMP (13-8-15)

Universal Auto.
Eq. Shares
Market Makers
1,12,000
Net Issue (Public)
20,48,000
Total Size
21,60,000
City : JAIPUR

539268
11-8-2015
Rs. 250.00
Rs. 295.00
Rs. 318.20
Rs. 295.00
Rs. 310.40
Rs. 316.40

Listing Information of
Pecos Hotels & Pubs
BSE SME
Listing Date
Offer Priced
Listing Price
Listing Day High
Listing Day Low
Listing Day Close
CMP (13-8-15)

539273
11-8-2015
Rs. 50.00
Rs. 56.00
Rs. 56.00
Rs. 53.25
Rs. 53.25
Rs. 51.00

Listing Information of
Mangalam Seeds
BSE SME
Listing Date
Offer Priced
Listing Price
Listing Day High
Listing Day Low
Listing Day Close
CMP (13-8-15)

539275
12-8-2015
Rs. 50.00
Rs. 55.00
Rs. 57.75
Rs. 55.00
Rs. 57.75
Rs. 55.20

SMART

17th August to 23rd August 2015

INVESTMENT

25

Universal Auto foundry :- The issue will open on 19th August & close on 21st August,
2015 Co offer 2160000 equity shares at price Rs. 15 to Rise rs. 3.24 cr. Fund. More details
are given in separate box.
PSU Disinvestment:Coal India :- It is believed that the Union Cabinet has gave nod at its meeting on August
12 for disinvestment of 5-10% of stake to raise Rs2200-300 crore.
The government is planning IPO of ONGC, Airport Authority of
India, Coal India, Hindustan Aeronautic, etc for unlocking values.
The finance minister is mulling the idea of roping in Indian Embassies in different countries to become merchant bankers. It will
try to attract investment from Australia and Japan.
Insight of Future Public Issues:Nuziveedu Seeds :- The cotton seed producer has obtained

Top 10 IPOs
Upcoming Soon
Co. Name
Rs. Cr.
Interglobal Aviation
2500
Rashtriya Ispat Nigam
1500
RBL Bank
1500
AGS Transact Technology 1350
Coffee Day
1150
Lavasa Corp.
750
Dilip Buildcon
750
Nuzvid Seeds
700
Sadbhav Infra
650
Navkar Corporation
600

green signal for offering Rs125 crore fresh equity, 98.81 lakh equity shares of promoters and 19.78 lakh shares of P/E investors.
Alkem Lab :- Pharma company is planning to come up with
Rs1500 crore to Rs3500 crore IPO for funding expansion and will
file DRHP with SEBI soon.
Mahindra Logistics :- The company
with income of Rs2000 crore may come
up with issue.
Allied Blenders & Distillers :- ABD
may come up with Rs1000 crore issue

Muthoottu Mini
NCDs Subscribed

soon.
Category
Series1
Series2
Series3
Series4
Series5
Series6
Series7
Total

Qty.
4,01,446
5,91,207
5,13,302
1,05,578
1,66,324
44,892
5,26,921
23,49,670

Date : 14-8-2015 (5 p.m.)


Issue Size = 12,50,000 (100%)
BSE + NSE Quantity
23,49,670 (187.97%)

Shree Pushkar
Chemicals & Fertilizers
Retail Investor Application

Shares
95
190
285
380
475
570

Amt.
14725
29450
44175
58900
73625
88350

Shares

665
760
855
950
1045
1140
1235

Amt.

103075
117800
132525
147250
161975
176700
191425

Shree Pushkar
Chemicals & Fertilizers
Retail Investor Application

Shares
200
400
600
800
1000
1200
1400

Amt.
13000
26000
39000
52000
65000
78000
91000

Shares

1600
1800
2000
2200
2400
2600
2800
3000

Amt.

104000
117000
130000
143000
156000
169000
182000
195000

Power Mech Issue Size


Registrar : Karvy Computershare
Refund / Allotment / Listing
Basis of Allotment : 21-8-2015
Refund likely on : 22-8-2015
Credit of Shares likely on : 24-8-15
Listing likely on : 26-8-2015

Basis of Allotment of
Emkay Taps BSE SME
No. of Shares Applied
400
No of Application
681
Total Eq. Shares
Applied
2,72,400
Allocation per Appl.
400
Ratio
55 : 67
Total no of Equity
Shares Allotted
2,23,600

Basis of Allotment of
Mangalam Seeds BSE SME
No. of Shares Applied 3000
No of Application
498
Total Eq. Shares
Applied
14,94,000
Proportionate
Shares Available
7,11,000
Allocation per Appl.
3000
Ratio
10 : 21
Total no of Equity
Shares Allotted
711000
Surplus (Deficit)
0

SMART
INVESTMENT

17th August to 23rd August 2015

26

Oyeeee Media BSE SME IPO


Opened on 13th August & Closes on 19th August
Offer price Rs. 40 ; Issue Size Rs. 15.90 Cr.
Asking Price is at PE of 210 : Aggressive offer : Avoid
OYEEEE MEDIA LTD is an in-house production division which focuses dedicatedly on
development and production of reality show, docusoap & docudramas. It is engaged in providing the most comprehensive range of solutions for corporate as well as private event management and media production needs. OML plan and stage events at national and international
levels to suit clients specific needs. Oyeeee Media is one-stop-shop for all event management
and media production requirements for the desiring clients'.
To part finance production of TV serials, production of film and meeting corpus fund requirements, the company is coming out with a maiden IPO of 3975000 equity share of Rs. 10
each at a fixed price of Rs. 40 per share to mobilize Rs. 15.90 crore. Issue opens for subscription on 13.08.15 and will close on 19.08.15. Minimum application is to be made for 3000
shares and in multiples thereon, thereafter. Issue is solely managed by First Overseas Capital
Ltd and registrar to the issue is Sharepro Services (India) Pvt Ltd. Post allotment, shares will
be listed on BSE SME. Post IPO its paid up equity of Rs. 10.84 crore will stand enhanced to
Rs. 14.81 crore. It has issued initial equity at par on incorporation and then at a price of Rs.
100 per share in March 2011. Thereafter it issued bonus shares in the ratio of 8 for 1 and
thereafter issued fresh equity at par to reach at current equity level of Rs. 10.84 crore as on
31.03.15.
Financial Performance :- On performance front, the company has posted average EPS
of Rs. 0.31 for last three fiscals. In fact after negligible income for previous two fiscals, for the
fiscal 2014-15 it had posted turnover of Rs. 1.04 crore with a net profit of Rs. 0.28 crore
translating into EPS of Rs. 0.26 that will turn Rs. 0.19 on fully diluted equity of Rs. 14.81 crore
post IPO. Thus asking price is at an exorbitant P/E of 210 that is very high compared to
industry composite P/E of 26. Even as per final prospectus of the company, its asking price is
at a P/E of 129 on existing equity which is also too high.
Merchant Bankers : - Its sole merchant banker has poor track record.
Recommendation : - Based on the current financials and earnings, the issue is priced very
aggressively and hence no harm giving it a miss.
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.

(Email: dilip_davda@rediffmail.com)

SMART
INVESTMENT

17th August to 23rd August 2015

27

Universal Autofoundry BSE SME IPO Opens on 19th & Closing on 21st Aug.
Offer price Fixed Rs. 15 : Issue size Rs. 3.24 Cr.
-By Dilip Davda
Universal Autofoundry Ltd (UAL) is engaged in the manufacturing of Iron Castings. It manufactures castings components in Grey Iron and S.G. (Ductile) Iron, primarily for automotive sector.
Castings are supplied in Machined, Semi Machined and as cast condition with surface treatment
as per customer's need. Suspension Brackets, Differential housing, Hubs, Brake drum, Flywheels,
Adjuster Nuts, Pulleys, Dampers, etc. are some of the items that find application in the commercial
vehicle and engineering industry.
UAL has more than 65,000 sq. ft. size area manufacturing plant located at VKI Area, Jaipur,
Rajasthan, which has an existing installed capacity of 7,800 MT p.a. for the manufacture of grey
iron and ductile iron castings. It caters to the requirements of many of the major automotive and
engineering goods manufacturers in India namely Ashok Leyland Limited, V E Commercial Vehicles Limited, Escorts Limited, TAFE, JCB India Ltd. etc.
To part finance its expansion of manufacturing facilities and meeting general corpus funds
requirements, the company is coming out with a maiden IPO of 2160000 equity share of Rs. 10
each at a fixed price of Rs. 15 per share (including Rs. 5 premium per share) to mobilize Rs. 3.24
crore. The issue opens for subscription on 19.08.15 and will close on 21.08.15. Minimum application is to be made for 8000 shares and in multiples thereon, thereafter. After MoA equity on
inception till 2012, it issued shares at par and then on 03.07.15 it issued bonus shares in the ratio
of 5 shares for every 2 shares held that brought its paid up equity to Rs. 5.95 crore that will rise to
Rs. 8.11 crore post IPO. Sole lead manager of this IPO is Hem Securities Ltd and Karvy
Computershare Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE
SME.
Financial Performance :- On performance front, it has posted an average EPS of Rs. 2.74 for
last three fiscals (based on pre-bonus equity of Rs. 1.70 crore). For the year ended 31.03.15 it has
earned net profit of Rs. 1.91 crore on a turnover of Rs. 57.23 crore. If we attribute these earnings
on fully diluted equity of Rs. 8.11 crore post IPO, then asking price is at a P/E of around 6 against
industry composite of 28 P/E that augurs well.
Merchant Bankers Performance :- This is the 14th IPO from the lead manager and it has
mixed trends for its past 13 offers post listing.
Recommandation : Long term investors may consider moderate investments .
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.
(Email: dilip_davda@rediffmail.com)

SMART
INVESTMENT

Smart Best Buy

17th August to 23rd August 2015

28

S. N. Zaveri

Cadila Healthcare : Buy on positive results and stock split


Infosys aims 2 billion dollar revenue by 2020
Motherson Sumi : Buy at every decline
Persistent Systems : Better placed in IT sector
Cadila Healthcare (Rs. 1985.00) (Code : 532321) :

Cadila Healthcare has reported a 47 percent rise in its consolidated net profit to Rs 353 crore for the first quarter ended
June 30, mainly on account of robust sales. Consolidated total income from operations of the
company rose to Rs 2,500.65 crore during the quarter under consideration as against Rs 2,050.12
crore in the year ago period. The margins at 24.1 per cent continue to grow compared to 21.7 per
cent seen in the earlier quarter and 18.3 per cent in the year-ago one.The formulation business in
the US (40 per cent of overall revenue) grew 37 per cent to Rs 985 crore, boosting overall exports.
Formulation exports at Rs 1,249.4 crore grew 27.9 per cent as the emerging markets formulation
business also grew a strong 19.5 per cent. In the Latin American market, Brazil continues to see
good traction, reporting about 26 per cent constant currency growth, while it is ramping up in
Mexico, too.The domestic formulations business, contributing 31 per cent to overall sales, grew
9.9 per cent. During the quarter, Cadila launched 12 products.The stock has given 76 per cent
returns in the past year. The company has also announced stock split(5:1). Accumulate.

Infosys (Rs. 1163.00) (Code : 500209) : With an aim to generate $2 billion annual
revenue from its products and services by 2020, Infosys is undergoing a restructuring. The firm
will increase investments to strengthen banking software Finacle's footprint in the US, spend more
on marketing brands and focus on building new sets of products and solutions. It's increasing
investments to strengthen banking software Finacle's footprint in the US, spending more on marketing brands and building new sets of products and solutions. It aims to generate $2 billion of
annual revenue from products and new services by 2020.Infosys may also build a new banking
product under the Finacle umbrella for new-age payments banks in India, with the Reserve Bank
of India (RBI) set to soon hand out new licences for these. Infosys posted a 4.5% qoq growth (V/
s 4.0% sequential growth expected) in USD revenues to US$2,256mn (V/s US$2,246mn expected). The CC was around 4.4% during the period, mainly driven by a 5.4% volume growth.The
stock has outperformed the market in last one year. Still a compelling buy.
Motherson Sumi (Rs. 342.00) : Motherson Sumi Systems has reported a lower-thanexpected net profit of Rs 266 crore for the quarter ended June 30, 2015 (Q1). The auto parts and
equipment makers had posted a profit of Rs 164 crore in the same quarter last year. Total income
from operations in the quarter under review grew by 12% at Rs 9,385 crore against Rs 8,392 crore
in the corresponding quarter of previous year.Analysts on an average had expected profit of Rs
327 crore and revenues of Rs 9,558 crore for the quarter.The company said it is coming up with
six new plants to take care of the customer requirements. Besides, there are 14 other plants at
various stages of completion. Motherson is strengthening its base to service the requirements of
customers and in line with the 2020 targets. Promoters are holding 66 per cent share, while FIIs
are holding almost 19 per cent shares. DIIs are holding more than five per cent stake. Public is
having just 10-11 per cent shares. Buy at every decline.

SMART

17th August to 23rd August 2015

INVESTMENT

29

Persistent Systems (Rs. 720.00) (Code : 533179) : IT firm Persistent Systems


has reported expected Q1 results. Its net profit declined 2.3 per cent to Rs 67 crore. However, the
company's revenues grew 15 per cent to Rs 500 crore in the quarter under review from Rs 435
crore.In dollar terms, the company's revenues grew 8.2 per cent year-on-year to $78.61 million in
the said quarter. Persistent continues to strengthen its product portfolio under 'Accelerite' brand
and expects to see good traction with customers as they develop their next generation products.
It added 49 new customers across geographies and industries. Persistent has signed an agreement with Intel Overseas Funding Corporation on July 23, 2015 to acquire the stock of Aepona
Holding along with its 5 subsidiaries, certainIP and related rights for Aepona Products.During the
quarter, the company acquired Convirture (May) and RGen Solutions (July).In terms of verticals,
Infrastructure and Systems accounted for 54.2 per cent of the quarter's revenues, followed by
Financial Services (16.6 per cent), telecom (14.9 per cent) and Life Sciences (14.3 per cent). The
stock has jumped 25 per cent in just one and half month. Buy in phase.

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SMART

17th August to 23rd August 2015

INVESTMENT

30

Dalal Street Whispers


(As per the closing price of August 13)

Uttam Galva (Rs. 41.00) (Code: 513216) :- This iron and steel company has a huge
land bank in Mumbai. It is setting up a new plant in Maharashtra. There are also reports of it tying
up with Posco. Steel shares are gaining strength after excellent results of Tata Steel. A possibility
of anti-dumping duty on steel imports from China is being seen, which will benefit the company.

Jubilant Life (Rs. 320.00) (Code: 530019)

:- Jubilant Life is an integrated global


pharma and lifesciences company. The stock has jumped by 16% in three sessions after it reported 2,579% rise in net profit for June quarter. It has also outperformed Sensex in recent times.
Huge movement is likely in the stock in the coming days.

VRL Logistics (Rs. 366.00) (Code: 539118)

:- The company has registered 40%


rise in net profit for June quarter, which has added pace to the stock. However, the failure of the
government to pass the GST bill in the parliament has been a dampener, and led to a sharp
correction in the share. The company has strong fundamentals and can give good returns in the
coming days.

Tata Power (Rs. 69.00) (Code: 500400)

:- The stock is in current after it reported


good results for the June quarter on August 13. As compared to loss of Rs. 111 crores in the
quarter last year, it has reported profit of Rs. 241 crore this year.

Shilpa Medicare (Rs. 1036.00) (Code: 530549)

:- The company has decided to


split its equity shares of Rs. 2 into two equity shares of Re. 1 each. The stock could attract some
interest in the coming days.

Lincoln Pharma (Rs. 116.00) (Code: 531633) :- This Ahmedabad-based company


has recently launched a cough syrup under the name Namcold - Dx. The stock has risen sharply
in the last week and month. The stock can be seen outperforming key indices in the coming days.

Educomp Solutions (Rs. 13.00) (Code: 532696)

:- This education sector company is setting up new branches in the country. Considering the government's focus on education
sector, the stock could be in for some good times going ahead.

Escorts (Rs. 155.00) (Code: 500595) :- The stock has been an underperformer but
both trading volumes as well as price have gone up. Reports from Mumbai suggest that Big Bull
Rakesh Jhunjhunwala has increased his stake in the company to 9.7%, putting it on the market
radar.

JK Paper (Rs. 38.00) (Code: 532162) :- Paper companies have reported positive
numbers after a long time. JK Paper is seen achieving turnaround position in June quarter. The
company has allotted a large number of shares to promoters through preferential allotment, which
is likely to have positive impact on the stock.
Gujarat Ambuja (Rs. 50.00) (Code: 524226)

:- This Gujarat-based company is a


major exporter of agro products. It is noteworthy that the stock has not taken part in the rally seen
in small and midcap shares. It is seen benefiting from a weakening rupee.

SMART
INVESTMENT

17th August to 23rd August 2015

31

High Risk High Return Shares


(As per the closing price on August 13)
Cadila HC (Rs. 1952.00) (Code: 532231) :- This pharma company's stock is trading
near 52-week highs after it reported 47% rise in net profit and 20% rise in sales at Rs. 2,500 crores
for the June quarter. The US business grew by 37%. It has also decided to split its equity shares
of Rs. 5 into five equity shares of Re. 1.
Kaveri Seed (Rs. 631.00) (Code: 532899) :- The stock of this agri sector company
had corrected due to 4% decline in net profit, 20% fall in sales and delayed monsoon. However,
experts say that the stock is attractively priced post-correction, and could deliver strong returns in
the long term.
Dewan Housing (Rs. 488.00) (Code: 511072) :- Known as DHFL, the company
has acquired 50% stake in Pramerica Asset Management Private Limited and Pramerica Trustees
Private Limited. The development is likely to have a positive impact on the stock.
Claris Life (Rs. 220.00) (Code: 533288) :- The company has received the nod for
Furosemide injections in the US market. The company was waiting for a year to export the product
to the US.
HCL Techno (Rs. 965.00) (Code: 5322814) :- This IT company has signed a 5-year
agreement with Sai Global, a leading provider of risk management solutions provider, for IT managed application services and projective.
Nucleus Software (Rs. 290.00) (Code: 531209) :- The company provides lending
and transaction banking software products to global financial services industry. It has 150 clients
in 50 countries. The company recently announced partnership with Mircrosoft for a cloud-base
lending solution.
Nestle (Rs. 6356.00) (Code: 500790) :- A lot of volatility is being seen in the counter
due to different reports about Maggi noodles. The stock jumped after the Mumbai high court
revoked the ban on Maggi by the food regulators on August 13.
NIIT Techno (Rs. 499.00) (Code: 532541) :- The export earnings of this IT sector
company are on the rise. It will benefit significantly from the weakening of the rupee vis--vis the
US dollar.
Vindhya Telelinks (Rs. 871.00) (Code: 517015) :- This Birla group company is
engaged in production of communication cables. Established in 1983, it is a joint venture between
MP government and Universal Cables, which has a technical collaboration with Sweden's Ericsson
group. The company had bagged a Rs. 1,036 crore order from VSNL some time back. There are
signs of upward movement in the stock.
Natco Pharma (Rs. 2282.00) (Code: 524816) :- This pharma company has announced that its equity shares of Rs. 10 would be split into five shares of Rs. 2. This can lead to
some movement in the stock.
PC Jewellers (Rs. 397.00) (Code: 534809) :- Ever since entering the capital market
last year, the company's share has outperformed its competitors. Reports say that the company is
set to reintroduce its scheme, wherein customers can contribute a fixed amount every month, and
buy jewellery of the collected amount at the end of the year. The scheme was in practice earlier
but was banned. It will have a positive impact on the company.

SMART
INVESTMENT

17th August to 23rd August 2015

32

Senior Astrologer
Dharmesh Joshi
Mob. : 9909941816

E-mail :
stockmarket@ganeshaspeaks.com

Sensex Predictions : Dt. 17th August to 21st August


" Please consider 10 minutes plus and minus in each prediction, and act accordingly. " Ganesha
advises you to compare every prediction with the prediction of the previous time slot. " You are
advised to collect your copy of the Market Predictions 2015-16 book at the earliest.
17-08-2015, Monday :- " Ganesha hopes that you would have read the predictions for
August-2015, as clearly mentioned in our 2015-16 stock market predictions book, which had been
predicted a year ago. " And, Ganesha also reminds you about the accurate predictions, as provided to you in the monthly graph for August-2015. " Plus, you must have also experienced the
accuracy of Ganesha's predictions in the weekly files sent to you. " On 03-08-2015, Nifty was at
8510.65 points, and today on 13-08-2015 Nifty is at 8417.80 points. Hence, you must have observed that Nifty is slowly moving downwards. " As mentioned in our graph for August-2015, Nifty
may witness a negative trend from 17-08-2015 to 20-08-2015. However, today from Opening to
11:35, Nifty may be positive. " Between 11:35 to 14:35, you may frequently buy-sell Nifty stocks,
on the soft side. " From 14:35 to 15:30, you may see a ray of hope in the Nifty trend.
18-08-2015, Tuesday :- " You may be susceptible to getting misled and investing in
wrong deals today, as the Moon and Rahu will be in conjunction. " Hence, not trading at Nifty
during the first 25 minutes of the day should be considered as your profit. " From 9:40 to 11:20,
Nifty may go up slightly. " Between 11:20 to 12:50, Nifty may witness selling. " Ganesha foresees
a very strange pattern getting formed at Nifty, from 12:50 to 15:30. This may be an up-down-up
pattern, in this sequence itself. "
19-08-2015, Wednesday :- " Moon and Rahu will still remain in conjunction today. Thus,
you may experience a similar planetary impact on Nifty stocks, as you may have witnessed yesterday. " Ganesha is predicting a week in advance that Nifty may witness a negative trend today.
Hence, you will need to deal very cautiously. " You should deal in the Nifty stocks today, only if you
have the capacity to take delivery, else you may experience financial issues. " Buy Nifty stocks at
around the Opening, and exit Nifty at around 10:10. " Sell Nifty stocks at around 11:11, and again
plan an exit at around 11:44. " Short sell Nifty stocks at around 13:13, and take an exit at around
14:28.
20-08-2015, Thursday :- The Sun has recently changed Signs, and is transiting in its
own Sign - Leo, since the last 2 days. " Today, from 9:15 to 11:15, the overall view at Nifty shall be
positive. " Between 11:15 to 12:50, Nifty may remain soft. " Nifty may experience an astrological
bounce at around 12:50, which may last for a small time period. Hence, you should take your
position and trade accordingly. " From 13:25 to 14:25, Nifty may go down. " Between 14:25 till the
end of the trading day, Nifty shall go up, step by step.
21-08-2015, Friday :- " The Moon will be in its own constellation - Swati Nakshatra today.
This is an indication that you must cautiously trade in Nifty stocks." Ganesha, however, also feels
that today is the best day for dealing in Intraday. " From Opening till the next 2 hours, Nifty shall go
up. " Between 11:15 to 12:00, Nifty may go down. " From 12:00 to 13:00, except for one correction, Nifty may overall remain slightly positive. " Between 13:00 to 14:30, Nifty may remain negative. " There may be short covering at Nifty, mostly due to 'A' group companies, during the last one
hour of the trading day.

SMART

17th August to 23rd August 2015

INVESTMENT

33

News Track

Power Grid FY16 Q1 net up 20%

Power Grid Corporation of India Ltd (PGCIL) has reported a 20.2 per cent rise in its June
quarter standalone net profit at Rs 1,366.51 crore, helped by higher income from operations. The company's net profit in the corresponding quarter last fiscal stood at Rs 1,136.51
crore, PGCIL said in a regulatory filing.
Revenue from operations during the quarter under review increased by 19.6 per cent to
Rs 4,717.55 crore as against Rs 3,941.85 crore in the same period a year ago.

SMART

17th August to 23rd August 2015

INVESTMENT

34

News Track

SBI fails to impress market men

State Bank of India posted a jump of 6 per cent in its consolidated net profit at Rs 4713.57 cr for
the first quarter ended June 30, 2015, compared to Rs 4448.15 crores in the corresponding quarter a year ago. The company's consolidated income grew to Rs 62,927.46 cr against Rs 60,620.93
cr in the reporting period. Gross bad loans in terms of percentage of total loans marginally rose to
4.29 per cent from 4.25 percent in the previous quarter, but were lower than 4.9 per cent reported
a year earlier. Bank's net NPAs were at 2.24% at the end of the quarter lower than 2.66% from last
year period. Despite improved result, share price of SBI was down on the day of result announcement.

Financial Weekl
y
eekly
Every Wednesday
Every Sunday

English & Gujarati Edition

Gujarati Edition

SMART

17th August to 23rd August 2015

INVESTMENT

35

REVIEW OF SMART PLUS NEWS LETTER


Amazing 24 % RETURN SMART
GAIN FOR SMART INVESTORS
Company

Godrej Ind.
DLF
Voltas
Arvind
Mirc Ele.
Minda
Globus Sp.
Banko Pr.
Andrew
Haldyn
Wonderland
GSFC
Rane Madras
Britannia
I.B. Housing
Vardhman Tex.
Talwarkar
Bharti Infra
Sun Pharma
Avanti Feed
B. F. Utilities
Jubilant Food
La Opala
Force Motors
Rolta India
Jubilant Life
Steel Strips
JMC Projects

Reccom.
3-8-15
Mon.
394
124
318
303
19
84
75
140
29
39
270
76.5
324
3201
794
941
297
436
851
2537
594
1897
519
2866
125
286
377
265

Weekly
High

411
130
329
312
20
87
78
146
30
42
288
81
388
3435
820
970
306
460
884
3044
642
1945
547
2975
130
354
392
277

4.3
4.8
3.5
3
5.3
3.6
4
4.3
3.4
7.7
6.7
5.9
19.8
7.3
3.3
3.1
3
5.5
3.9
20
8.1
2.5
5.4
3.8
4
23.8
4
4.5

Company

Reccom.
3-8-15
Mon.
UPL
544
Thomas Cook
220
Suven Life
268
RSWM
383
HPCL
970
EMAMI
1312
CESC
587
Cummins India
1184
Hero Moto
2660
Associated Alcohols 160
GHCL
117
Escorts
162
Atlas Cycles
225
Renaissance Jew.
83
GIC Housing
219
Pennar Ind.
69
HOEC
44
Kango Tea
168
Ramco Ind.
108
HFCL
16
BSL
52
Usher Agro
43
J. K. Paper
41
Bafna Pharma
28
Noida Toll
25
Bhandari Hosier
58
Alpine Housing
31
Sanwaria Agro
7.87

Weekly
High

576
232
274
392
991
1344
609
1246
2728
191
141
169
230
91
224
71
45
172
124
18
61
45
42
31
26
65
34
8

5.9
5.5
2.2
2.3
2.2
2.4
3.7
5.2
2.6
19.4
20.5
4.3
2.2
9.6
2.3
2.9
2.3
2.4
14.8
12.5
17.3
4.7
2.4
10.7
4
12.1
9.7
1.7

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SMART
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17th August to 23rd August 2015

37

Editor : Dilip K. Shah

ARCHI PUBLICATIONS
311 to 313, Nalanda Enclave, Pritamnagar 1st Dhal, Ellisbridge, Ahmedabad-6. GUJARAT, INDIA

Phone : 079 - 2657 66 39, Fax : 079 - 2657 99 96 Mob. : 0982500 6980

E-mail :
smartinvest25@yahoo.in / smartinvest25@gmail.com / info@smartinvestment.in

web : www.smartinvestment.in
Disclaimer :- Investment recommendations made in Smart Investment are for information
purposes only and derived from source that are deemed to be reliable but their accuracy and
completeness are not guaranteed. Smart Investment or the analyst / writer do not accept any
liability for the use of this column for the buying or selling of securities. Readers of this column
who buy or sell securities based on the information in this column are soley responsible for their
actions. The author, his company or his acquaintance may / may not have positions in the scrips
featured herein

SMART

17th August to 23rd August 2015

INVESTMENT

38

D(en)O(f)W(ealth)
After grand success of our
Website www.smartinvestment.in &
Our Publications, Smart Investment
Weekly (Gujarati & English), Smart
Plus News Letter & Smart Bonanza
(Gujarati Weekly), Smart Investment proudly announces launch of
DOW wherein subscribers to this
service will be given through SMS/
Email Breaking News and Other
Buy / Sell Ideas which happen during the week i.e. during the interval
of publication of our 2 issues.
Such information will be ahead
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Last Performance of our DOW


Recommendation (Short Term Gain)
Date
5th May
8th May
15th May
22nd May
26th May
28th May
9th June
18th June
18th June
18th June
18th June
26th June
2nd July
13th July
14th July
28th July
31st July
3rd Aug
5th Aug

Stock

Reco.
Rate
VIPPY SPINPRO
20
CONART ENG
22
MANALI PETRO
16.5
SUZLON
25
GOLDIAM INT
28
PONDY OXIDE
75
INDUS BANK
810
KEI IND
63
VRL LOGI
305
KALPATARU POWER 241
SUPRAJIT ENG
128
IBULLS HOUSING
620
MRPL
76.5
FSL
33.25
JAIN IRRIGATION
75
BAJAJ FINANCE
5150
JINDAL SAW
78
HFCL
15
SUBEX
16.5

Target Achieved
Rate
25-31
28.95
30-32
32.25
21-30
37.2
32-45
28
38
43
82
134
880
988.5
90
118
335-350
407
270
292
150
149
675-900
820
85-105
83
40-55
36.6
95-125
79
5600
5720
95-125
85.5
20-35
16.95
18.5-22
18.35

Stop
Loss
45%
47%
125%
12%
54%
79%
22%
87%
33%
21%
16%
32%
8%
10%
5%
11%
10%
13%
11%

Rs 5000/- (for 1 year)


in favour of Archi Publications

Contact : (M) 9825006980 & 9979330348


smartinvest25@gmail.com , smartinvest25@yaoo.in
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