Smart Investment 4q53u

Warning: Your soft Copy (E-mail Edition) is for your exclusive use only. Any attempt to share your copy or forwarding your copy to a non-subscriber will disqualify your hip & we will be compelled to stop your supply and forfeit your subscription thereafter without any refund to you.

:: Shree Ganeshay Namh ::

Only Financial Weekly Published in English & Gujarati

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 I 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 19 Aug • Jun Construction Output YoY 19 Aug

Most Popular Webstie for the Stock Market Investors

www.smartinvestment.in

Caution: Please note that your copy/access to our website is for your exclusive use only. Any attempt to share your access to our website or forwarding your copy to a non-subscriber will disqualify your hip and we will be compelled to stop your supply and forfeit your subscription thereafter without any refund to you.

Please send your Subscription as early as possible if you want to read or these 38 pages E-mail Edition of Smart Investment (Financial Weekly) Click on our previous Edition of Smart Investment for Free Sample (Demonstration) For More Detail E-mail to: [email protected]

SMART INVESTMENT

17th August to 23rd August 2015

2

Derivatives strategies [email protected]

Subhashini Suresh

The index would face strong 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 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 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 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

3

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

4

Jatin Sanghavi

Market Scan

(Mumbai) (M) 098205 26455 [email protected]

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 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 ed. 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 ed 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 zone between Sensex 2720927174 and Nifty 8213-8186. This 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

5

Sensex 27209 and Nifty 8195 and 61.8% Retracement of the current rise i.e. Sensex 27174 and Nifty 8213. A breach of this 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 around 8200.

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

SMART

17th August to 23rd August 2015

INVESTMENT

6

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 ed 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

7

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 . 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 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

8

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 at 27415 in the first stage and if this is broken, then at 27210 is the most crucial 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 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

9

Sarvesh Ashok Trivedi (Mumbai) (Mob) 09820728124

www.chartsanketstock.com

Nifty Future may get important 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 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 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 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 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 [email protected]

17th August to 23rd August 2015

10

Best Buy

Expert’s 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 I 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 age 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 age 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% , 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 Divi’s 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 I 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% . 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 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 age. 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 ed 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 ed 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 ed 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: [email protected] )

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 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 company’s 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 Healthcare’s 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 ed 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 ed 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, 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 : [email protected]

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 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 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 ed 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. Promoter’s 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 ed 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 may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family 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 K 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 levels are at 8371 - 8340 Level; below 8340 Level, other 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 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%

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% 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 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 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 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 IPOs Name Offer Price (Rs.)

(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 . Before Investing check the fundamentals of IPO

Grey Market Movement Power Mech's IPO got 38 times response: Grey Market touches Rs 105 Minimum Application rates between Rs 500-600 Players become active in last days of Power Mech taking and volume to new height Last week Syngene International and Power Mech IPOs rates witness high volatility in grey market. Syngene IPO 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 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 s 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 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 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 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: [email protected])

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 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: [email protected])

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 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 , 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 of verticals, Infrastructure and Systems ed 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.

www.Chittorgarh.com Stock Broker VS

Stock Broker

Share Broker Reviews IPO/FPO/NCD Info Website

Top 25 Share / Commodities Brokers in India - Compare Sharekhan V/s Angel Broking RKSV V/s Zerodha

ICICIDirect V/s Kotak Securities Trade Smart V/s Compositedge

IIFL V/ s MotilalOswal • Ventura V/s Indiabulls

Get Latest IPOs / FPOs Information Current IPO list IPO Allotment Status

Grey Market IPO Performance Tracker

IPO Calendar Free IPO Email Alerts

Visit : http://www.chittorgarh.com

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 ed 40% rise in net profit for June quarter, which has added pace to the stock. However, the failure of the government to 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-à-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 t 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 : [email protected]

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 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

Only Subscribers will get SMART PLUS NEWS LETTER on their E-mail Address Log on to..... www.smartinvestment.in

E-Copy Every Saturday eveaning in your Mail-box

Hard Copy (Every Monday) 1 Year

2 Year

3 Year

1.

Gujarati

1200

2100

2900

2.

English

750

1300

2000

** Hard Copy will be send by post only. If required through Courier, Rs.25/- Extra per copy

E-mail Edition (Soft Copy) (Every Saturday) 1 Year

2 Year

3 Year

1.

Gujarati

1100

1800

2400

2.

English

700

1200

1700

E-mail Edition (Soft Copy) of Smart Plus News Letter (Every Sunday) (5 Page) * For Private Circulation only

1.

Smart Plus

1 Year

2 Year

3 Year

1000

1700

2400

Combined Package for Weekly & News Letter Guj. & English E-Copy (Every Saturday) With Smart Plus News Letter (Every Sunday) 1 Year

2 Year

3 Year

1.

Gujarati

1900

3200

4400

2.

English

1500

2500

3500

SMART INVESTMENT

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 : [email protected]

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 of our competitors and will enable subscribers to reap rich dividend in short term/few days as well as early entry for LongTerm Wealth creation. Investors interested to subscribe to DOW can provide their Mobile no and email id and make payment of

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

: (M) 9825006980 & 9979330348 [email protected] : : : Bank Details : : : HDFC Bank : Current A/c No. : 00062560008858 Beneficiary Name : Archi Publications RTGS / NEFT IFSC : HDFC0000006 Navrangpura Branch, Ahmedabad-380009.