Money MT1 - 061117
Money MT1 - 061117
Money MT1 - 061117
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T I M E S
A TIME COMMUNICATIONS PUBLICATION
VOL XXVII No.1 Monday, 6 12 November 2017 Pgs.23 Rs.18
Markets resilient; Nifty eyes Money Times to cost Rs.20 per copy w.e.f.
10500 1st January 2018
To partially set off the rising cost of operations,
By Sanjay R. Bhatia MONEY TIMES Weekly will be priced at Rs.20 per
The anticipated correction remained elusive on the bourses last copy w.e.f. 1st January 2018.
week. Although marginal dips were witnessed, a major Consequently, the new subscription rates will be
correction has not yet panned out on the back of fluid fund 1 year: Rs.1000; 2 years: Rs.1900; 3 years: Rs.2700
flows. The markets continued to touch fresh historic highs last
week amidst stock-specific action. The news of India jumping 30 ranks in the ease of doing business perked up the
market sentiment.
The FIIs remained net buyers in the cash and derivatives segments. However, the DIIs turned sellers during the week.
The breadth of the market remained positive amidst high volumes, which is a positive sign for the markets. The earnings
season has largely been in line with expectations. Crude oil prices inched higher moving close to the two-year high with
Brent crude price surpassing as the outlook remained upbeat
as the OPEC-led supply cuts have tightened the market and Believe it or not!
drained inventories. The Bank of England raised interest B. L. Kashyap & Sons recommended at
rates for the first time since 2007, from 0.25% to 0.5%. Rs.42.60 in TT last week, hit a high of Rs.62
Technically, the prevailing positive technical conditions fetching 46% returns in just 1 week!
helped the markets touch fresh historic highs. The Stochastic, Remson Industries recommended at Rs.75.50
MACD, KST and RSI are all placed above their respective in TT last week, zoomed to Rs.88.80 fetching
averages on the daily and weekly charts. Moreover, the Nifty 18% returns in just 1 week!
is placed above its 50-day SMA, 100-day SMA and 200-day Graphite India recommended at Rs.455.35 in
SMA. The Niftys 50-day SMA is placed above its 100-day and FF on 23 October 2017, hit a high of Rs.575 last
200-day SMA, its 100-day SMA is placed above its 200-day week fetching 26% returns in just 2 weeks!
SMA indicating a golden cross breakout. These positive Conart Engineers recommended at Rs.54.70
technical conditions could lead to regular buying support. in TT on 23 October 2017, hit a high of
The prevailing negative technical conditions, however, still Rs.64.90 last week fetching 19% returns in just
hold good. The Stochastic and RSI are placed in the 2 weeks!
overbought zone on the daily and weekly charts, which could Kiri Industries recommended at Rs.392.80 in
lead to intermediate bouts of profit-booking and selling SW (Part II) on 25 September 2017, hit a high
pressure especially at higher levels. of Rs.624 last week fetching 59% returns in 6
The +DI line is placed above the ADX line and the -DI line and weeks!
also above 30 on the daily chart, which indicates that the
buyers are gaining strength. The ADX line is still languishing (FF Fifty: Fifty; SW Sectoral Watch; TT Tower Talk)
around the 22 mark, which indicates that the current market This happens only in Money Times!
trend lacks strength and a choppy trend is likely to pan out. Now in its 27th Year
BAZAR.COM
TRADING ON TECHNICALS
Weekly Up
Scrip Last Level Level Center Level Level Relative
Reversal Trend
Close 1 2 Point 3 4 Strength
Value Date
Weak Demand Demand Supply Supply
below point point point point
GUJARAT ALKALIES 768.00 708.0 712.7 763.3 818.7 924.7 79.6 697.3 18-08-17
MEGHMANI ORGANICS 121.45 106.0 110.5 117.0 128.0 145.5 78.9 106.2 06-10-17
KRBL 661.00 625.0 633.0 653.0 681.0 729.0 77.3 623.7 18-08-17
GRAPHITE INDIA 575.05 453.5 494.0 534.5 615.6 737.1 75.5 483.4 03-11-17
RELIANCE INDUSTRIES 946.00 931.0 932.3 944.7 958.3 984.3 74.7 915.5 06-10-17
*Note: Up and Down Trend are based of set of moving averages as reference point to define a trend. Close below
averages is defined as down trend. Close above averages is defined as up trend. Volatility (Up/Down) within Down
Trend can happen/ Volatility (Up/Down) within Up Trend can happen. Relative Strength (RS) is statistical
indicator. Weekly Reversal is the value of the average.
Weekly Down
Scrip Last Level Level Center Level Level Relative
Reversal Trend
Close 1 2 Point 3 4 Strength
Value Date
Demand Demand Supply Supply Strong
point point point point above
APOLLO HOSPITALS ENT. 1023.00 983.7 1011.7 1028.3 1039.7 1045.0 37.52 1044.75 27-10-17
GREAVES COTTON 127.90 119.6 125.6 129.3 131.6 133.0 29.35 130.36 15-09-17
FORTIS HEALTHCARE 142.75 135.4 140.8 144.3 146.2 147.7 38.38 146.64 19-10-17
INFOSYS 927.00 874.7 911.7 933.3 948.7 955.0 47.65 933.25 03-11-17
CUMMINS INDIA 899.00 849.3 884.3 904.7 919.3 925.0 48.11 901.75 19-10-17
*Note: Up and Down Trend are based of set of moving averages as reference point to define a trend. Close below
averages is defined as down trend. Close above averages is defined as up trend. Volatility (Up/Down) within Down
Trend can happen/ Volatility (Up/Down) within Up Trend can happen.
EXIT LIST
Note: SA-Strong Above, DP-Demand Point, SP- Supply Point, SA- Strong Above
Scrip Last Close Supply Point Supply Point Supply Point Strong Above Demand Point Monthly RS
BUY LIST
Note: SA-Strong Above, DP-Demand Point, SP- Supply Point, SA- Strong Above
Scrip Last Close Demand point Demand point Demand Point Weak below Supply Point Monthly RS
PUNTER PICKS
Note: Positional trade and exit at stop loss or target whichever is earlier. Not an intra-day trade. A delivery based trade for a possible time frame
of 1-7 trading days. Exit at first target or above.
Note: SA-Strong Above, DP-Demand Point, SP- Supply Point, SA- Strong Above, RS- Strength
Weak RS-
Scrip BSE Code Last Close Demand Point Trigger Supply point Supply point
below Strength
KALYANI INVESTMENT COMPANY 533302 2167.05 2077.00 2180.00 1954.60 2319.3 2544.7 71.14
GTPL HATHWAY 540602 152.20 148.00 153.10 140.10 161.1 174.1 70.49
VALIANT COMMUNICATION 526775 76.55 73.90 78.00 67.75 84.3 94.6 65.9
BRIGADE ENTERPRISES 532929 277.25 269.00 284.40 260.25 299.3 323.5 63.43
MCDOWELL HOLDINGS 532852 41.75 40.55 42.85 39.15 45.1 48.8 63.43
UNIVERSAL AUTOFOUNDRY 539314 64.00 62.75 65.00 52.00 73.0 86.0 61.63
TOWER TALK
Little known speciality chemical manufacturing company Amal is going great guns and is now in the fold of the
Lalbhai group. Buy for bumper returns.
LIC Housing Finance disappointed the market by reporting higher NPAs. Its NIM was also the lowest in the last 11
quarters. Stay away from this counter till some clarity is received.
As per the new debt repayment plan, Reliance Communications envisages equity sway from some its lenders of
~Rs.100 crore apart from sale of certain assets worth Rs.17500 crore. Steps to cut down the debt (asset
monetisation) may excite investors with a risk appetite.
The government is aggressive about converting all its automobiles into e-vehicles over the next few years. PSUs will
follow suit. A good time to buy Tata Motors and Mahindra & Mahindra.
Max Life Insurance is keen to acquire up to 10% stake in Lakshmi Vilas Bank. The stock could surge if that
happens.
Debottlenecking at IG Petrochemicals is over. With all its plants functioning well, the stock could take a big leap any
time. Buy immediately.
USFDA is likely to lift its ban on the import alert on Divis Laboratories Vizag plant. The company should be on a
comeback trail very soon. Buy.
Torrent Pharmaceuticals is reportedly buying out Unichem for ~Rs.3250 crore, which will place it amongst the
coveted pharma companies in India. It makes sense to buy.
Transmission giant Power Grid Corporation of India continues to report sustainable growth. A stable long-term
investment bet.
The demand for copper is likely to double by 2020. Hindustan Copper can be bought for stellar gins.
Rama Steel Tubes has won two orders worth Rs.288 crore for the supply and erection of transmission lines for
rural electrification in its JV company Pir Panchal Construction from Uttarkhand Power Corporation and Himachal
Pradesh Electricity Board for execution in 24 months.
Sanco Industries, manufacturer of PVC pipes & allied
products is in limelight on reports of major expansion and
likely export order. Relative Strength (RS)
The Cabinet has approved the sale of government's entire signals a stocks ability to perform in a
73.47% stake in Dredging Corporation of India. A bumper dynamic market.
dividend may be announced. A good buy even at the current Knowledge of it can lead you to profits.
level.
ITC is pursuing to re-launch some of its prestigious and high POWER OF RS - Rs.3100 for 1 year:
margin personal care products and brands. Keep accumulating What you get -
in small lots.
SRF, a manufacturer of refrigerants, has signed a deal to buy Most Important- Association for 1 year
Mexichems HFC, which is into zero ozone depleting at just Rs.3100!
hydrocarbons. A big positive for the company. Buy. 1-2 buy / sell per day on a daily basis
Merchant banker, Devonshire Capital, plans to buy 51% stake 1 buy per week
in Ruchi Soya Industries for ~Rs.4000 crore. A positive for its
1 buy per month
shareholders.
1 buy per quarter
Transport Corporation of India posted excellent results for
1 buy per year
Q2. The management is confident of better figures in H2FY18.
A good buy. For more details, contact Money Times on
Tech Mahindra reported good numbers for Q2 with 30% 022-22616970/4805 or
[email protected].
higher PAT. It has added 1,250 employees, which is indicative
of better business in the coming few quarters. A safe bet.
BEST BET
STOCK WATCH
By Amit Kumar Gupta
MARKET REVIEW
MARKET OUTLOOK
PRESS RELEASE
STOCK SCAN
I G Petrochemicals Ltd
(BSE Code: 500199) (CMP: Rs.710.40) (FV: Rs.10)
By Dildar Singh Makani
Company background: Incorporated in 1988 and promoted by the renowned Dhanuka group, Mumbai-based I G
Petrochemicals Ltd (IGPL) is an established market leader and the lowest cost producer of Phthalic Anhydride (PAN)
with strong recognition and plant facilities of international standards. Equipped with one of the largest capacities at a
single location, IGPL caters to the local as well as international markets.
Product: PAN is used in the manufacture of plasticizers, which are most essential in making PVC products, shoe soles,
cables, pipes and hoses, leather cloth, films for packaging and other products. It is also used to manufacture alkyd resins
used in paints and in the production of unsaturated polyester resins for building materials, plastic products, textile
industries and printing ink.
Plants: IGPL has three state-of-the-art manufacturing facilities in technical collaboration with Germany-based Lurgi. Its
plants are located at MIDC, Taloja in Maharashtra.
Financial Parameters: For FY17, IGPLs achieved a turnover of Rs.1040.29 crore with PAT of Rs.101.56 crore fetching
an EPS of Rs.32.98 v/s Rs.19.6 in FY16 and Rs.2.89 in FY15. The figures for the first two quarters also look very exciting
and point towards much higher earnings.
With increasing cash liquidity (due to rising profits), interest expenses have fallen from Rs.38.17 crore in FY15 to
Rs.22.67 crore in FY16 and further to Rs.18.05 crore in FY17. This indicates IGPLs financial strength and is indicative of
the lesser use of debt.
With an equity capital of Rs.30.79 crore and reserves of Rs.362.58 crore, IGPLs share book value works out to Rs.127.74.
Credit Ratings: IGPL continues to get better credit ratings of A+ and A1+ for its long-term and short-term financial
requirements, which reflects a stable outlook. These high ratings enable it to access debt at lower interest rates, as and
when the need arises.
Current year working: The demand for PAN in the Asia Pacific region is expected to grow at ~7% for the next 2-3
years. During Q1FY18, it posted PAT of Rs.38.86 crore and an EPS of Rs.12.69. During Q2FY18, it posted PAT of Rs.33.41
crore v/s Rs.20.23 crore in Q2FY17. Its profitability improved despite the fact that one of its plants remained shut due to
debottlenecking process and change of catalyst. The EPS for H1FY18 works out to Rs.23.61. We expect H2FY18 earnings
to improve significantly and in all probability IGPL is likely to notch an EPS of ~Rs.55 for FY18.
Recent Acquisition: IGPL recently acquired the Maleic Anhydride (MA) business of Mysore Petro Chemicals Ltd (MPCL)
on a slump sale basis for Rs.74.48 crore payable over 5 years. MA is a chemical intermediary used in every field of
STOCK ANALYSIS
EXPERT EYE
By Vihari
TECHNO FUNDA
By Nayan Patel
REVIEW
Pressman Advertising Ltd Conart Engineers recommended at Rs.55.25
(BSE Code: 509077) (CMP: Rs.63.90) (FV: Rs.2) last week, zoomed to Rs.64.90 appreciating 17%
in just 1 week!
We had recommended this stock earlier at Rs.35.65 on 30 November
2015, where-after it zoomed to Rs.67.35. We recommend this stock Dynamic Industries recommended at Rs.70.85
on 18 September 2017, zoomed to Rs.109.85
once again on account of its excellent Q2FY18 results. last week appreciating 55% within 1.5 months!
Incorporated in 1983, advertising agency Pressman Advertising
Orient Abrasives recommended at Rs.34.2 on
Ltd (PAL) specializes in media planning and buying, design, digital 11 September 2017, zoomed to Rs.48 last week
and public relations. It offers corporate, brand/product, financial appreciating 40% within 2 months!
and government advertising services. PAL also provides public
Sakuma Exports recommended at Rs.70.05 on
relations consultancy services such as corporate communications, 19 June 2017, zoomed to Rs.216.75 last week
marketing communications, financial communications, media appreciating 209% within 4.5 months!
relations, analyst relations, crisis communications and digital
Hisar Metal Industries recommended at Rs.50
communications. on 5 June 2017, zoomed to Rs.130.10 last week
PAL has an equity capital of just Rs.4.70 crore supported by appreciating 160% within 5 months!
reserves of Rs.25.93 crore. It is a debt-free company. The Weizmann Forex recommended at Rs.524.20 on
promoters hold 47.19% of the equity capital, which leaves 52.81% 17 April 2017, zoomed to Rs.1125 last week
stake with the investing public. appreciating 114% within 6.5 months!
For Q1FY18, PAT soared 54% to Rs.1.88 crore from Rs.1.22 crore Dynemic Products recommended at Rs.57.1 on
in Q1FY17 on higher income of Rs.12.07 crore fetching an EPS of 13 June 2016, zoomed to Rs.184 last week
Re.0.8. During H1FY18, PAT jumped 43% to Rs.4.09 crore from appreciating 222% within a year and half!
Rs.2.86 crore in H1FY17 on marginally lower income of Rs.22.35 PPAP Automotive recommended at Rs.151.50
crore fetching an EPS of Rs.1.74. on 9 May 2016, zoomed to Rs.454.15 last week
appreciating 200% within a year and half!
PAL is a regular dividend-paying company and it paid 65%
dividend for FY17. PAT has grown at 19.3% CAGR over the last three years.
Currently, the stock trades at a P/E of 18.85x. It PEG ratio
is 1x, which is comfortable in this bull market. Sinclairs Financial Performance: (Rs. in crore)
Hotels Ltd is a group company of PAL, which currently Particulars Q2FY18 Q2FY17 H1FY18 H1FY17 FY17
trades at around Rs.366.9. Sales 12.08 11.28 22.35 23.61 50.12
Based on its performance parameters, the PAL stock PBT 2.59 1.84 5.65 4.28 9.96
looks quite attractive at the current level. Investors can Tax 0.71 0.62 1.55 1.42 3.22
buy this stock with a stop loss of Rs.57. On the upper PAT 1.88 1.22 4.09 2.86 6.74
side, it could zoom to Rs.85-90 levels in the medium- EPS (Rs.) 0.80 0.52 1.74 1.22 2.87
BULLS EYE
Disclaimer: Investment recommendations made in Money Times are for information purposes only and derived from sources that are deemed to
be reliable but their accuracy and completeness are not guaranteed. Money Times or the analyst/writer does 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
solely responsible for their actions. The author, his company or his acquaintances may/may not have positions in the above mentioned scrip.
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