Smart Investment English e PDF PDF Free
Smart Investment English e PDF PDF Free
Smart Investment English e PDF PDF Free
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MARKET NEEDS
RAM’S BLESSING
Markets doesn't seem
to be ready for big fall,
every dip is still
buy in here!
Selling spree may increase with spurt in share prices
July expiry week
Bear's was successful turns negative
to stop Bull's rally Snap last six week's
gaining streak
Primary Markets
Rights Issues flood the market, two exited and three entered
Shriram Trans' Rights Issue closed on July 30 and PVR on July 31
M&M Fin, Gateway Distri, Refex Ind and Spencer Retail
Rights Issues entered the market
MindSpace Business Park REIT issue got 13 times subscription
Yes Bank's FPO got listed at flat rate and went into discount
This week only BSE SME IPO of Suratwala Business with
price of Rs.15 will enter the market on August 3
Corrections Are Temporary, Growth Is Permanent
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Financial Weekly
D(en)O(f)W(ealth)
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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.
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Performance of our last Recommendation
Stocks Reco Date Reco Price Recomm. High After
M&M FIN 16th April 20 163 181-185 240
EID PARRY 20th April 20 147.5 165-175 314
LAURUS LAB 21st April 20 423 445-460 724
ALEMBIC PHARMA 21st April 20 630 685-700 983.15
ENDURANCE TECH 27th April 20 615 650-675-700 950
EID PARRY 8th May 20 156 175 314
PLASTIBLEND India 1st June 20 160 190-200 Target achieved
Moldtech Techno 3rd June 20 41 55-60 45.5
KALPATARU POWER 5th June 20 218 245 Exit at 215
TALBROS AUTO 5th June 20 101 120-125 Exit at 100
IBULLS HSG FIN 10th June 20 152.5 175 263.45
MAHESHWARI LOG 10th June 20 188 225 Stop loss
Rain Industries 18th June 20 76 85 105
MIDHANI 18th June 20 210 227-235 230
DBL 24th June 20 293-280 325-350 Made a high of
315 on 23rd July
KEI IND 2nd July 20 351 390-400 made a high of
398 on 13th July
SRIKALHASTI PIPES 3rd July 20 190 225-235 made a high of
224 on 15th July
MEGHMANI ORG 9th July 20 58 70-75 made a high of
63.25 on 20th July
NOCIL 14th July 20 105 120-125 made a high of
113.85 on 23rd July
Marquee Clients
Financial Weekly
PFS is expected to
report net profit of
Rs.225-250 crore for
the current financial
year 2020-21. It is
expected to report net
profit of Rs.40-50
crore in Q1 result
which is to be an-
nounced next week
India had said it wanted to divest its control-
Covid effect ling stake in PFS and invited potential
Management
Shri Deepak Amitabh, Chairman
He is an former Indian Revenue Services (IRS) Officer. He also
serves as Chairman and Managing Director of PTC India Limited. He
has more than 35 years of experience in the field of auditing, financing
and revenue mobilization.
Cont...
Shareholder
Information
Top 5 Shareholders
(As on 31st June, 2020) % of holdings
PTC India Limited 64.99
Life Insurance Corporation of India 2.13
Dimensional Emerging Markets Value Fund 0.37
Emerging Markets Core Equity Portfolio 0.36
The emerging Markets Small Cap Series 0.24
augmenting of cash flows at competitive cost and for on lending to sustainable infrastructure
projects, and it would help in improving Net Interest Margin (NIM) of the company with
diversified sources of borrowing.
PFS is paying dividend to its shareholders regularly. Last year it had paid Rs.0.80 per
share i.e 8 per cent. Earlier in 2018, it had paid Rs.0.20. It had paid Rs.1.5 per share in 2017
i.e. 15 per cent, Rs.1.2 in 2016 i.e. 20 per cent. Its dividend yield is almost 4 per cent which
is much better than Bank savings rate.
As and when in next 2-4 Qtrs, when this Sell Transaction happens, this Infrastructure
Finance company’s stock can gradually move at least towards its Book Value of Rs 34.
However, by that time if company can recover significant NPAs and disbursements picks
up, it can attract valuations higher than BV(as is trend in NBFCs sector) and can easily
attract buyer around 1.5-2X of its book value which is around Rs 60, if company is able to
recover planned NPAs in next 2 Qtrs. So around present price of 17-18, it appears almost
risk free, with potential to double or even higher in next 6-12 months.!!
******
Financial Weekly
TRENDLINE RESISTANCE
DOES THE TRICK
DAILY GAP @ 11244-11035 PROVIDES SUPPORT.
Surpassing one Resistance after another had become a ritual for the Market, but there was a
twist in the tale for the week gone by. It took the Weekly Trendline Resistance at 11344 to stop the
rampaging Nifty in its one way upward journey. It started with formation of Bearish Harami on
Wednesday, the top of which lay exactly at the Weekly Trendline Resistance. The fall in the Nifty
finally found Support at the lower boundary of daily Gap at 11244-11035. For the week ahead,
strong Support will be seen at the Weekly Gap Support at 10953-10933 followed by 10860 which
is the 200dma. On the positive side, only a weekly closing above Nifty 11344 will negate the bear-
ishness of past week.
TECHNICALLY SPEAKING.
Sensex opened the week at 38275, made a high of 38617, low of 37431 and closed the week at
37606. Thus it closed the week with a loss of 522 points. At the same time the Nifty opened the
week at 11225, made a high of 11341, low of 11026 and closed the week at 11073. Thus the Nifty
closed the week with a loss of 121 points.
On the daily charts, both the indices have formed a small Black body candle with a slightly
longer lower shadow. Last three days formed 3 black body candles but cannot be classified as 3
Black Crows as the candle size did not fulfil the criteria. Wednesday completed Bearish Harami
with confirmation on Thursday, indicating a Reversal in very short term timeframe. On the weekly
Cont...
This Weeks Recommendations
Rec. Name CMP SL TGT-1 TGT-2
Buy TorrentPharma 2663 2613 2738 2815
Buy IndiaMart 2828 2770 2917 3009
Buy IPCALab 1874 1836 1932 1993
Buy GodrejProp 926 907 955 985
Buy Dabur 513 503 529 546
:::: INDEX LEVELS ::::
S3 S2 S1 CLOSE R1 R2 R3
NIFTY 10713 10847 10953 11073 11239 11341 11471
SENSEX 36254 36810 37185 37606 38199 38617 39087
Financial Weekly
Subscription Chart
D(en)O(f)W(ealth) / Dow Scheme
1 Year 2 Years 3 Years
1. Den Of Wealth 5000 10000 15000
MOVE FORWARD
BPS RAJA (Mumbai) E-mail [email protected]
ACKNIT INDUSTRIES
BSE: 530043 Rs.67 face val Rs.10
This is a small capital based (Only Rs.3 Cr0 co manufacturing industrial gloves. Now
there is news that it is also diversified into making gloves for Covid19 protection as well as
PEP which is much needed in all hospitals and very much high priced as well
BUZZING STOCKS
Capri Global Capital Rs197 is being accumulated on some good news
coming from the Board meeting scheduled on Friday
Coral Lab : It has a small capital of Rs.3.5 Cr. The face value is Rs.10 EPS is
Rs15, There is informed buying in this counter on some expected good results for the quarter
ended in June. Keep a watch current price Rs22
Cont....
Financial Weekly
Jignesh R Mehta
(SEBI Registered Research Analyst)
E-mail : [email protected]
Website : www.KiranJadhav.com
Phone: 9327 11 3344 / 9328 11 33 44
Twitter: @jigneshrmehta
Derivative Data:
Weekly OI data for NIFTY suggests that after a long time now the CALL writes are overpowering
the PUT writers because higher OI is concentrated on CALL side this time. The maximum CALL OI
is placed at 11500 strike and second highest OI which is also a CALL OI is placed at 11200 strike.
PUT OI this time is quite lower and this suggests weaker supports for the NIFTY. Highest PUT OI
is placed at 11000 and then 10800 strike.
Monthly OI data for NIFTY suggests very strong picture because here PUT writes still rule over
the CALL writers. Highest OI on monthly data is coming from PUT OI placed at 11000 strike. This
clearly suggests that longer term market view is not bearish until PUT writers at 11000 are so
strong. CALL OI is very less and accumulated only at 11500 strike.
For BANKNIFTY the highest weekly & monthly CALL OI is placed at 22500 strike and PUT OI is
placed at 21000 strike. Here, monthly data view matches to that to monthly.
Financial Weekly
Forex
This is after a long time USDINR chart suggests its changing stance every week. Last week, we
were at the view that same was in bear hands and from 75 USD, it was heading for lower levels.
Much to our anticipation, we did see 74.80 kind of levels last week. This week again the stance is
BULLISH for USDINR chart. Hence Rupee will remain on weakening side. This time support comes
from 74.80 kind of levels for AUG future series. Expected levels are 75.3 for now. 75.3 is the first
resistance and if it is breached, we can expect 75.4 and even higher.
Crude:
Last week we summarized that Crude oil WTI futures was showing some sign of weakening.
We also believed that any close below 3000 would cause a bearish sentiment. The same thing
has been witnessed on Thursday when Crude closed below 3000 for the first time, markets was
ready for big plunge only until OPEC+ opens its tap which finally caused a smart recovery from the
lower levels. By writing OPEC+ opening their taps, we mean that the organization of petroleum
exporting countries have curb their outputs to large extend to enable to WTI Futures chart to re-
bound on last day of the week. Now Crude is back above 3000 mark so it has gone in to consolidat-
ing range for now. This time a strong support exist at 2900. Upside range remains to be 3200 for
now.
Wishing you a profitable week ahead!
Author:
JIGNESH R MEHTA
SEBI Registered Research Analyst
www.kiranjadhav.com
[email protected]
Phone: 9327 11 33 44 / 9328 11 33 44
Twitter: @jigneshrmehta
Financial Weekly
Fast Growing Stocks Least Expensive Stocks Best PEGs Income Generators Least Risky
Higesht Expected Revenue The 5 Stocks with the Top 5 Stocks with the least Top 5 Stocks with the Top 5 Stocks With the
growth over the previous year lowest forward P/E price earning to growth ratio highest dividend yield lowest downside risk
Co. Name Revenue Co. Name Lowest Co. Name Earning Investor Earn as Div. for Co. Name Lowest
Growth(%) Forward PE (%) Grwoth Ratio Every Rs.100/- Invested Downside Risk
PI Industries 32 HG Infra 7.54 Dilip Buildcon 0.10 Co. Name Hig.Div. Yield Sanofi India 1.15
HDFC 30 PFIZER 8.25
NTPC 7.75 HG Infra Engg. 0.29 Dr. Reddy’s Lab. 1.21
Dixon Techno 28 SUN TV Network 6.58
Power Grid 8.59 NTPC 0.43 Solar Ind. 1.24
Engineers India 6.14
Granules India 27 Tata Power 9.44 Granules India 0.49 Syngene Int. 1.31
Embassy Office 5.08
HG Engg. 26 Zee Enter 9.77 Escorts 0.49 HUL 1.35
Power Grid 4.71
Financial Weekly
1 Suzlon Energy
The India Cements
-0.33
0.68
13.42
24.83
SMART
BUY OF THE WEEK
Dark Horse
Some successful recommendations of
Smart Buy of the Week (Smart Dark Horse)
Recommended Dt. Stocks Recomm. High after Gain
Price Recomm. (%)
18th May 20 ADVANCED ENZYME 157 194.65 24%
Last week SHIVA GLOBAL 28.6 33 15%
Dark Horse-1
quality and standard. Its profound background of being in the logistics business (transportation of
Bitumen & LPG) has been a key factor to foray into this segment. Company has excellent profes-
sional relations with all major road contractors in India due to Company's ethical, transparent and
good governance policies. Company has excellent Bulk Bitumen Storage facilities to effectively
handle and market bitumen imports at Karwar, Belgaum, Hyderabad, Haldia, West Bengal Dighi,
Maharashtra, Hazira Gujarat and Kakinada. Company is the pioneers of logistics in Bitumen, which
is predominantly used in road construction business.
It has an equity base of just Rs.10.26 crore that is supported by reserves of around Rs.147.25
crore. The promoters hold 59.33% while the investing public holds 40.67% stake in the company.
During FY20, its PAT zoomed 90% to Rs.25.55 crore as against Rs.13.45 crore on 48% higher
sales of Rs.787.03 crore fetching an EPS of Rs.24.91.
Currently, the stock trades at a P/E of 3.25x. It has recommended 15% dividend for FY20.
Its recent high rate was Rs.791 which was formed on May 2018. Stock almost corrected 90%
from recent high.
Investors can accumulate this stock with a stop loss of Rs.67. It may give very good returns in
medium to long term.
Financial Weekly
Stock Buzz
Subramanian Mahadevan
[email protected]
Nifty Overview : In Last Trading Session, Nifty closed at 11104. As informed in last session,
Nifty resistance to be at 11200/11300 levels and you can see that Nifty touched 11300 and again down. Our
view remains same as last week - Nifty is already at resistance and thus we suggest to avoid buy in Nifty,
rather sell at rise or wait for selling opportunity based on intra-day charts. We will review our levels only if
Nifty closes above 11300. If Nifty closes above 11300 then it can open upside till 11600 else we would like
to sell Nifty at rise.
Bank Nifty Overview: In Last Trading Session, Bank Nifty closed at 21695. Bank Nifty support
is at 21300. Bank Nifty resistance at 22200 levels and if crosses 22200 then can touch 22900 levels.
Trading Results
Scrip Name BSE Code Buy / Enter at Did High/ Remarks
Sell Low
Adani 512599 Buy 165 191 Target Achieved
Exide 500086 Buy 151 157 Did High
Sun Pharma 524715 Buy 470 540 Target Achieved
Wipro 500209 Sell 290 281.70 Did Low
Trading Buy
Scrip Name BSE Last Enter at 1st 2nd Stop
Code Close Between Tgt. Tgt. Loss
Cadila 532321 391 384/390 400 415 374
Canara Bank 532483 101 95/100 110 125 88
Lupin 500257 918 900/905 925 940 885
SRTRANSFIN 511218 695 685/695 705 725 677
Sun Pharma 524715 484 475/480 490 510 467
Tata Motors 500570 105 94/98 110 120 89
Trading Sell
Scrip Name BSE Last Enter at 1st 2nd Stop
Code Close Between Tgt. Tgt. Loss
Infy 500209 972 990/1000 980 960 1009
Biocon 532523 414 430/435 425 410 445
Tata Consumer 500800 429 450/455 435 420 465
Wipro 507685 281 295/302 285 270 315
Note: All calls are momentum calls based on technical analysis and all levels as per future prices (If scrip not available
in futures then BSE Cash price). All these calls are given based on daily charts but intra-day signals are equally important
to enter the trade in a timely manner. Timing is very important and we at shareinfoline.com give you timely calls based on
intra-day charts. Read Disclaimer at ShareInfoline.com
Financial Weekly
Technicals : Channel continuation pattern on daily chart. One can buy and hold for a price
target of Rs 1620- 1680. Stop-loss is Rs 1457 on daily closing basis. Time frame is 21 days.
Technicals : Bullish Channel continuation pattern on daily chart. One can buy and hold for a
price target of Rs. 91. Stop-loss is 70 on daily closing basis. Time frame is 15 days.
Financial Weekly
TRADNICAL STRATEGY
Email: [email protected], M. 9228237373
NIMESH THAKER, BARODA
Sebi Registered NO. : INH000005874
Financial Weekly
Every Sunday Every Wednesday
Golden quote
Laughter is the closest distance between two people
Financial Weekly
Dilip Davda
e-mail Expert’s Eye
[email protected]
During the week Gautam Gems announced bonus issue in the ratio of
6 shares for every 5 shares held and Sadhna Nitro announced surprised
bonus in the ratio of 1 share for every 2 shares held.
Anuh Pharma has convened board meet on
07.08.20 to consider bonus issue.
ahead and got support from IT counters, selling spree in Auto, Pharma, Banking and Consumer
Durables kept market in red zone. Market breadth remained negative as Mid and Small cap
underperformed benchmarks. FIIs and DIIs were the net sellers for the day.
Markets opened on a positive note on Tuesday, and traded in green zone for the day amidst
short covering ahead of derivatives expiry. NSE Nifty scored 168.75 points to end the day at
11300.55, BSE Sensex gained 558.22 points to close at 38492.95. Although global markets were
showing weakness, we marked all out buying from fund houses in index heavy weights that kept
market in green. Metal, Auto, IT, Banking and Pharma counters gained on fresh support and short
coverings. Mid and Small cap select counters too gained on informed buying. However, for the
second session of the week market breadth remained negative as Mid and Small cap
underperformed benchmarks. However, FIIs were the net buyers and DIIs were the net sellers for
the day.
Cont....
On Wednesday we marked cautious negative opening that finally ended with mega loss for
the day. NSE Nifty lost 97.70 points to close at 11202.85 and BSE Sensex marked deficit of 421.82
points to end the day at 38071.13. Although Pharma counters rallied, offloading at every rise in
Reliance and select counters in IT, Consumer Durables, Auto counters kept market in red zone the
day. Mid and Small cap counters too met hammering at every rise. However, market breadth re-
mained negative despite outperformance by Mid and Small cap indices. FIIs and DIIs were the net
sellers for the day.
Though markets opened on a firm positive note on Thursday, it gave up post noon to close in
deeper red for the day. NSE Nifty marked deficit of 100.70 points to end the day at 11102.15 and
BSE Sensex lost 335.06 points to close at 37736.07. Continued US-China war trade tension, surge
in COVID-19 pandemic cases kept a tab on general sentiment. Amidst F & O Expiry, heavy offloading
in Banking, Oil and Gas, FMCG shadow over surge in IT and Pharma counters. Hammering was
witnessed for Mid and Small cap counters as well. For the second session in a row market breadth
remained negative despite outperformance by Mid and Small cap indices. FIIs were net buyers
while DIIs were the net sellers for the day.
After cautious positive openings on Friday, markets moved both ways to finally end the ses-
sion in red. NSE Nifty lost mere 28.70 points to close at 11073.45 and BSE Sensex marked deficit
of 129.18 points to end the day at 37606.89. Thus closing of benchmarks above sentimental levels
of 11.1K and 37.5K respectively gave a sigh of relief. However, this was the third straight negative
closing marking hat tricks for the week. Select Pharma and Metal counters gained and got support
from indices heavy weights like Grasim, UPL etc. Reliance eased on profit booking and got sup-
port from Auto and Banking counters for slide of the indices. Mid and Small cap indices outper-
formed benchmarks but market breadth remained hugely negative. FIIs remained net sellers while
DIIs turned net buyers for the day.
Dollar hovered around Rs.74.80 a Dollar. Brent Crude Oil too kept moving around 43.5$ a bar-
rel. Market men will have auto and cement dispatch and other economical data for the month of
July 20 on radar coupled with movement of ongoing monsoon season. For the ensuing week, we
have 300 odd results announcements that will keep market on stock specific mode as usual. Glo-
bal cues will keep a tab on general sentiment. Market may salute Ram Janmabhoomi Shilanyas at
Ayodhya that is taking place on 5th August 2020. Announcement of more stimulus may also trigger
the sentiment in general. Postponement of new Margin ruling by SEBI till August end may propel
market sentiment for a while.
Amidst such a scenario, benchmarks movement is likely in the range of 11550-10550 for NSE
Nifty and 39250-36750 for BSE Sensex for the coming week.
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. Above information is based on the details available as on the date
along with market perceptions. Investors should bear in mind that any investments in stock markets are subject to unpredictable
market related risks. (THE AUTHOUR IS SEBI REGISTERED RESEARCH ANALYST)
Financial Weekly
Lack of confidence
Often investors sell the stocks which later prove Multibaggers. The prime reason for such actions are -
" You purchased stock on somebody else advice
" Your advisor is unable to guide you.
" Due to sharp fall in share price
" Fresh IPO company
" Unknown management
" Facing crash for the first time.
To summarise, the efforts required to stop the losses are equally important as the efforts required to pick a
quality stock at reasonable valuations.
Look into each and every stock in your portfolio and think - Had I not owned this stock; will I buy today?
(investors are advised to act as per their own conviction. Above are only the views of the Author)
Financial Weekly
SUN TV Network (Rs. 386.00) (Broadcasting & Cable TV) :- Sun TV : Sun
TV is one of the dominant media player, particularly in south. The company’s revenues would be
impacted due to Covid-19 crisis in FY21, the management sees a cushion to net profit from lower
cost of revenues and much lower amortisation, which should enable it to maintain flattish net profit.
In programming, priority will be for producing fictions while non-fiction shows will have to wait for a
few months.) Sun TV still intends to spend its committed Rs 1.5 billion on original shows for SunNXT.
It does not expect IPL in FY21, however, in case IPL is played, it should add Rs 2 billion in pre-tax
profit with the downside risk of Rs 25 crore from ticketing revenue. The company’s unique model of
higher subscription revenues (54 per cent in Q4FY20) and GRP benefit from a strong movie library
in the South market will help outperform peers on earnings, and mitigate downside risk. Buy in
phased manner.
Dr. Reddy’s Labs. (Rs. 4521.00) (Pharmaceuticals) :- Dr Reddy's Laborato-
ries: Dr Reddy's Laboratories, last week, reported a 12.6 percent year-on-year drop in consoli-
dated net profit at Rs 579 crore for the quarter ended June 2020. Revenue from operations during
Q1FY21 stood at Rs 4,418 crore, up 15 percent yoy. Gross margin came at 56 percent in Q1FY21,
up 430 bps over the previous year against 51.7 percent in Q1FY20 and up 450 bps against 51.5
percent in Q4FY20. EBITDA improved 2 percent YoY to Rs 1,162 crore but margin dropped 320
bps YoY to 26.3 percent. The company's Pharmaceutical Services and Active Ingredients (PSAI)
saw 88 percent YoY growth. India market witnessed a degrowth of 10 percent YoY while the Eu-
rope market grew 48 percent yoy. North America and Emerging Markets grew 6 percent and 9
percent, respectively. The stock has rallied 26 percent during the June quarter and gained 41
percent year-to-date. Still, it will outperform the market. Buy.
Disclosures : At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make purchases or sale of the
securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no
responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by anybody.
Financial Weekly
Disclosures : At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm,
his clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested
interest obviously in their going up or down as the case may be.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based
on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible
for any legal or financial losses made by anybody.
Financial Weekly
Reliance’s results are not as good as it seems on paper. Refining margin has come down.
Bottom line improves because of 4600cr. plus other income. The company wants to acquire
Big Bazaar. Amazon deal of 9.9% investment in JIO was announced but price was not fixed.
The share remains below Rs2150, Bears will enjoy.
Nifty supports are at 11035/11040/25. The last support is at 11,000. On upper side 11200
is resistance.
In Yes Bank we had written that issue price of Rs12/- against stock price of Rs26/- did
surprise us. Now share price falls to issue price and may fall further.
In Mahindra finance 1:1 right at Rs50/- against market price of Rs145. Why investors
should not sale at Rs140 plus and not hold right share.
Axis Bank: Worst is yet to come, sale on every rise. Some adverse news know to market
that is sure.
NIFTY :- For next week NIFTY has strong support around 11015 levels. Break will take
it to 10950-10900 levels. On the upper side NIFTY will face strong hurdle at 11150 levels, cross
over with volume and close above will create short covering at take NIFTY up to 11300-11340
levels…
Bank Nifty :- For next week BANK NIFTY has strong support around 21375 levels.
Break will take it to 21030---20925 levels. On the upper side BANK NIFTY will face strong hurdle
at 21985 levels, cross over with volume and close above will create short covering at take BANK
NIFTY up to 22250---22345 levels…
INVESTMENT IDEAS…
KANPUR PLASTIPACK LTD
(507779) (70.65) (Face Value Rs.10)
Established in 1971, Kanpur Plastipack Limited today is one of the world's leading manu-
facturers and exporters of FIBCs and bulk bags, delivering a diverse range of superior
quality products to its global customers. Company offers fully integrated industrial bulk pack-
aging solutions ranging from Flexible Intermediate Bulk Container (FIBC), Woven Sacks to
Polypropylene (PP) high tenacity Multifilament Yarn (MFY).
With an equity capital of Rs.14.32 crore and reserves of Rs.114.25 crore, KPL's share
book value works out to Rs.89.83. The promoters hold 72.31% of the equity capital which
leaves 27.69% stake with the investing public. Promoters have increased their stake by
0.61% during July 2019 to June 2020.
Cont....
Financial Weekly
Disclosures: At the time of writing this article, author, his clients & dependent family members may have positions in
the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make pur-
chases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest
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
Listing Information of It should be noted that despite bullish trend, higher liquidity due to
Yes Bank FPO stimulus package and opening of 20 lakh demate accounts during
BSE Code 532648
Listing Date 27-7-2020 lockdown along with higher inflow of FIIs, the companies are hesi-
Offer Price Rs. 12.00 tating from entering the market.
Listing Price Rs. 12.30
Listing Day High Rs.12.30 The primary market has witnessed only three IPOs in the current
Listing Day Low Rs.12.30
Listing Day Close Rs.12.30 calendar year - SBI Cards, Rossari Biotech and MindSpace Busi-
CMP (31-7-20) Rs.11.95 Cont...
ness Park REIT. It is believed that the companies will enter the market only after there are
signs of stability in the market and start of new bull run.
On the other hand, the Rights Issues have flooded the market. After Reliance Ind, AB
Fashio, Arvind Fashion, Shriram Transport Finance and PVR, M&M Fin, Gateway Distripark,
Refex Industries and Spencer Retail have entered the market.
MindSpace IPO
Rs.4500 crore IPO opened on July 27 and closed on July 29. The company received bid for
87,78,24,600 units against 6,77,46,400 units offered.
Subscription :- It has got 10.60 times subscription in QIB category and 15.51 times in
NII category, which includes retail category. The overall subscription level reached 12.96.
Cont...
Listing :- The issue will get listed on August 12. It may get listed at higher premiums so
investors may get higher listing gain.
It is believed that 7.5% tax free yield in 2021-22. It is advisable to hold the units for long
term after allotment.
Kalyan Jewellers
The private equity giant Warburg Pincus backed Kalyan Jewellers is likely to enter the
market with Rs.1700 crore IPO in the fourth quarter of the financial year.
Cont...
Financial Weekly
Refex Industries
Opened on 27th July & Closes on 10th August
The company is active in refrigerant gas re-filling business. The company's manufacturing
facility is at Thiruporur near Chennai. It is also active in Coal and Ash trading.
The company has offered 55,26,848 equity shares at price of Rs.45 to raise Rs.24.87
crore. The issue has opened on July 27. It will issue 5 shares to each of the eligible share
holders with 14 shares. The issue will close on August 10. The lead manager is Keynote Fin,
Issue registrar is Cameo Corporate. Post Issue the equity will go up from Rs. 15.47 crore to
Rs.21 crore.
Recommendation :- The shares are offered at 10% discount from the current price.
The financial performance also seems good and value is also attractive compared peers.
Investors can subscribe it for medium to long term.
Gateway Distripark
Opened on 30th July & Closes on 13th August
It is integrated intermodal logistic services provider company. It provides cargo transpor-
tation, handling, storage and other facilities. Its subsidiary Gateway Railway Freight Ltd
holds authority for operating container trains with Indian Railway.
The company has offered 4 shares against 27 shares for raising Rs. 115.98 crore. The
record date is July 24. It opened on July 30 and closed on August 13. It will get listed on BSE
and NSE. The issue lead manager is ICICI Securities and Registrar is Link Intime. The
company's equity is Rs.108.73 crore which will go up to Rs.124.8 crore post issue.
Spencer Retail
Spencer Retail's right issue Opens on 4th August with 1,06,04,563 Equity Shares offer Rs.
75 Per Shares Issue closes on 18th August. In this rights issue, Company mobilze Rs. 79.53
cr. in this Right Offers. Company is offering 2 Rights shares for every 15 shares held as on
29th July 2020.
The current price of this issue is Rs. 83 while the stock's high price during 52 weeks is Rs.
110 and low price of Rs. 21.
Note : Demand for online shopping is on the rise amid a lockdown caused by the Corona
virus, which is facing competition from other departmental stores such as Big Bazaar, Reli-
ance Retail, D-Mart and many more. Difference between the current price and the offer price
is just Rs. 8. for More details with Recommendation will be published on Next week.
Financial Weekly
Disclosures as per SECURITIES AND EXCHANGE BOARD OF INDIA (Research Analysts) Regulation, 2014; • I and / or my clients may
have investment in this stocks • I/My family have no financial interest or beneficial interest of more than 1% in the company whose stocks I am
recommending • Stop loss is useful for Short / Medium Term investor Only • Smart Investment will not be responsible / liable for any loss arising
out of investment based on tis advices • Past performance may or may not be substainedin future " (Dilip K. Shah) Research Analyst : SEBI
Regn No. : INH000002152
Financial Weekly
03-08-2020 Monday
" Today the market will be boring and it will move in a slow process, so feels Ganesha. " From
9:15 to 10:25, Nifty will keep playing around the surface. " From 10:25 to 12:15, there may be an
uptrend in Nifty. " After 12:15, there won't be any strength in the market but just do jobbing. Again
and again, the market will try to move towards the soft side.
04-08-2020 Tuesday
" If we see it astrologically, the planets are presently working in a highly uneven pattern. The
reason being Ketu-Jupiter, Moon-Saturn, Rahu-Venus and Sun-Mercury, meaning eight out of nine
planets are in opposite combination. " From 9: 15 to 10:15, take a tea break and observe the
pattern. The reason being that you are not going to get money in this slot. " From 10:15 to 11:21,
Nifty will move up step by step. " From 11:21 to 12:02, there will be an upside V-shaped graph.
Thus, you won't get an idea about what position should you make at this time. If you don't under-
stand, then avoid. " From 12:02 to 13:41, Nifty may go down step by step. " From 13:41 to 14:09, it
can be called "No position Zone". " After 14:09, Nifty may go down step by step.
05-08-2020 Wednesday
" Today work with the preparation of speculation. " Today, today trade only if you are prepared
for both profit = loss else you will find faults with Ganesha. " Around 10:10, buy Nifty and exit as
soon as you earn Rs two. " Sell Nifty around 12:00 and exit as soon as you earn Rs three. " Sell
Nifty around 14:04 and exit as soon as you earn Rs 3. But keep the calculations for staying there till
the end.
06-08-2020 Thursday
" From 9:15 to 9:45, Nifty will do timepass around the surface. " From 9:45, starting will be down,
thereafter the market will catch an uptrend gradually. " After 12:15, there is a mixed pattern. Thus,
every 15 minutes the trend will change. Keep reshuffling the trades under this consideration.
07-08-2020 Friday
" Today there will be a frequent downtrend in Nifty. This Ganesha has written one week in
advance. " On 10-08-2020, there will be volatility in Bank Nifty, it will be an upside for any reason.
" There is zero weightage in the slot from 9:15 to 10:25. So, there won't be much fun. If you have to
do, then do fast jobbing. " From 10:25 to 12:15, the positive effect of buying in "A" group will influ-
ence Nifty's call ratio. " From 12:15 to 13:27, there will be mixed to the down pattern. " From 13:27
to 13:55, Nifty will make a temporary jump. " From 13:55 to 15:15, Nifty will be down. " In the last 15
minutes, there will be a recovery in Nifty.
Financial Weekly
Brokerages View
Goldman Sachs says Hexaware stock influenced
more by delisting than its fundamentals
Goldman Sachs equity research arm has said the recent rally in Hexaware Technologies NSE
1.44 % stock price is in?uenced more by expected outcome of shareholder ballot results than its
earnings fundamentals. It has given a sell call on its stock price with a revised twelve month target
price of Rs 296, implying more than 20% downside from the current market price.
The stock price of Hexaware Technologies has rallied 48% after the promoters announced their
intention to delist the stock from Indian bourses at an indicative offer price of Rs 285.
“Stock we believe in the near term could be inuenced more by outcome of shareholder ballot
results (due on 10th Aug) around approval of promotor’s de-listing plan, rather than near term
earnings fundamentals,” the report said.
“Our 12-month price target of Rs 296 is based on an 85%/15% split of PE and M&A value ap-
plied to our next 12 months sales estimates. The target PE is in line with the average 12-year
historical PE while the target enterprise value/Sales is based on similar historical M&A transac-
tions,” said the report.
The report added that despite reporting increase in deal wins, muted growth outlook for July-
December 2020 came in as a negative surprise and could be an indication of pricing pressure or
vendor consolidation ahead. It added that the key risks include higher-than-expected IT demand,
INR depreciation vs. USD, stronger market demand for automation and cloud solutions and poten-
tial M&A/ de-listing at a higher price.
Stock price of many delisting bound companies had gone up in the past, fuelling concerns of
stock price running ahead of fundamentals in some cases, especially after the failure of delisting of
speciality chemical company Ineos Styrolution. The stock price of Ineos is currently trading at around
Rs 510 as against the discovered price of Rs 1,100 through reverse book building, where its pro-
moter did not even make a counter offer.
Analysts tracking the company said that Hexaware Technologies has one of the lowest EBITDA
margins of around 15.5% as compared to the mid-cap industry average of 18.5-19.0% as it has one
of the highest subcontractor expenses amongst mid-cap peers due to higher on-site mix. The com-
pany has seen a year-on-year decline in EBITDA margin over the last 3 years.
Promoters of two other companies such as Vedanta NSE 2.66 % and Adani Power have also
announced voluntary delisting plans from Indian bourses recently.
Financial Weekly
News Track
Looking to the positive developments, and strong fundamentals, the shares of Best Agrolife is
still sn excellent BUY at current levels.
The share was also featured in our earlier issue has gone up substantially in the last week after
our recommendation and is expected to touch new highs. Investors are advised to buy at current
levels for further gains.
Indian Agro-chemical companies will be the key supplier in changed world order. Furthermore,
innovations and new chemistries in most compliant regulatory environment shall drive the growth
for Indian Agro-chemical companies. Vinod Kumar, Director, Best Agrolife Ltd said, "We are a
perfect fit in all the criteria's' that we believe will drive the future growth. Riding on this growth wave
our goal is to become a Rs. 2000 crore company by 2022." He further added, "We are working with
a SINGLE POINT AGENDA to emerge as an icon for growth, technology and innovation and to
become a significant player of Indian Agro-Chemical Industry both in terms of turnover and mar-
gins."
Currently, the company caters to several Bluechip Corporates for P2P which include UPL Ltd,
Jubilant, Indo Gulf Fertilisers, Mahindra Summit Agriscience, Bharat Rasayan, etc.
According to a recent survey, the estimated size of Indian agro chemical market is USD 3 Bil-
lion, which is a positive for companies like Best Agrolife. The boost to the agro sector by the current
government will increase demand of agro chemicals and insecticides.
Financial Weekly
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D(en)O(f)W(ealth) / Dow Scheme
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