Equity research report 30 october 2017 ways2capital

Page 1


TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES ) NIFTY FIFTY : - Nifty futures and bank nifty future market closed at 10357 / 24982 according to technical analysis if nifty futures and bank nifty future moves up-word in upcoming treading sessions then 10400/ 25260 will be small resistance, if it break this level then nifty futures and bank nifty future can touch 10500 / 26000 level . it will be hard resistance. meanwhile in reveres there is small support on 10345 / 23900 for nifty futures and bank nifty future after breaking this support with volume there is big support for nifty futures and bank nifty future on 10300 / 23800

Monday, 30 Oct 2017


TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES ) NIFTY DAILY

WEEKLY

MONTHLY

R2

R1

PP

S1

S2

10583

10409

10323

10236

10062

R2

R1

PP

S1

S2

10668

10340

10175

10011

9682

R2

R1

PP

S1

S2

11377

10388

9895

9400

8414

R2

R1

PP

S1

S2

25830

25286

25014

24272

24197

R2

R1

PP

S1

S2

27267

25226

24250

23245

21234

R2

R1

PP

S1

S2

28748

25256

24260

22765

19773

BANK NIFTY DAILY

WEEKLY

MONTHLY

MOVING AVERAGE

21 DAYS

50 DAYS

100 DAYS

200 DAYS

NIFTY

10356

10014

9903

9472

BANK NIFTY

24355

24433

24192

22674

WEEKLY

MONTHLY

PARABOLIC SAR

DAILY

NIFTY

9800

8923

7558

BANK NIFTY

23809

20628

15834


PATTERN FORMATION ( BANK NIFTY )

Detail of Chart - Bank nifty open at 24000 and close at 24981 and made high of 25139 and made low of 23902.next major resistance for bank nifty is 2526o above the level of this bank nifty can move further in upside.major support for bank nifty is 23900.below this level it can go low side


PATTERN FORMATION ( NIFTY )

Detail of Chart - Nifty open at 10175 and close at 10357 made high of 10390 moves in bullish side in this week.next resistance for nifty is 10400 if nifty break this level it can move further in upside.on technical chart it break bollinger band upper band upper band.it also suggest upside movement in nifty..


NSE EQUITY DAILY LEVELS COMPANY NAME

R2

R1

PP

S1

S2

ACC ADANI PORTS

EQ EQ

1815 101

1799 87

1788 79

1772 72

1763 57

AMBUJACEM ASIAN PAINT AXISBANK BAJAJ-AUTO BANKBARODA BPCL BHEL BHARTIARTL BOSCH LTD BHARTI INFRATEL CIPLA COALINDIA CAIRN INDIA LTD DRREDDY GAIL GRASIM HCLTECH HDFC HDFCBANK HEROMOTOCO HINDALCO HINDUNILVR ICICIBANK ITC INDUSIND BANK INFY IDEA CELLULAR KOTAKBANK LT M&M MRF MARUTI SUZUKI ONGC NTPC RCOM RELCAPITAL RELIANCE RELINFRA RPOWER SBIN SSLT( VEDL) SUNPHARMA TATA MOTORSDVR TCS TATAMOTORS TATAPOWER TATASTEEL UNIONBANK

EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ

288 1236 516 3517 224 220 107 580 663 309 201 2591 508 1279 918 1800 1876 3978 293 1342 357 296 1721 990 183 1098 1293 1438 69710 8666 205 174 17 615 1030 552 42 355 370 623 465 94 764 216 1815 101 288 1236

281 1203 496 3379 194 196 99 522 636 296 190 2451 482 1222 879 1732 1819 3849 279 1286 317 279 1661 963 172 1054 1250 1400 66132 8312 190 151 16 587 968 518 41 328 350 572 441 87 740 191 1799 87 281 1203

277 1187 486 3310 178 184 95 494 622 290 184 2381 469 1193 860 1693 1791 3785 272 1259 297 270 1630 949 167 1032 1228 1381 64343 8134 182 139 15 573 937 501 40 314 340 547 428 84 728 178 1788 79 277 1187

274 1171 477 3240 163 172 91 465 609 283 179 2310 456 1164 840 1662 1762 3720 264 1231 277 262 1600 935 161 1010 1206 1361 62554 7957 174 127 14 559 906 484 39 301 330 521 416 81 716 165 1772 72 274 1171

265 1148 458 3104 136 148 83 407 582 269 168 2276 431 1110 821 1597 1699 3591 259 1179 239 245 1541 905 152 966 1166 1321 58976 7602 169 103 13 532 844 450 38 273 310 471 490 74 691 140

1763 57 265 1148


TOP 15 ACHIEVERS SR.NO

SCRIPT NAME

TOP 15 LOOSERS

PREV CLOSE

CMP

% CHANGE

SR.NO

SCRIPT NAME

PREV CLOSE

CMP

% CHANGE

1

SBI

242.75

311

28.15%

1

YES BANK

357.80

307.05

14.18%

2

ICICI BANK

257.85

301.15

16.79%

2

BHARTI INFRATEL

460.25

418.55

9.06%

3

ZEEL

489.35

541.50

10.66%

3

HCL TECH.

922.30

854.95

7.30%

4

ULTRATECH CEM

4034.35

4439.85

10.05%

4

INDIABULLSHUSINGFIN

1360.70

1264.30

7.30%

5

GAIL

433.25

471.10

8.74%

5

LUPIN

1051.20

1001.10

4.77%

6

ADANIPORTS

401.40

432.05

7.64%

6

KOTAK BANK

1077.75

1029

4.77%

7

L&T

1139.75

1224.65

7.45%

7

INDUSIND BANK

1690.85

1627.35

3.76%

8

ONGC

184

6.95%

8

HDFC BANK

1848.40

1791.05

3.10%

9

AXIS BANK LTD

460.30

485.95

5.57%

9

HDFC

1745.75

1699.05

2.68%

10

MARUTI SUZUKI

7731.10

8114.45

4.96%

10

BAJAJ FIN

1845.90

1819

1.46%

11

UPL

793.70

831.30

4.74%

11

HINDALCO

273.90

270.05

1.41%

12

NTPC

175.05

181.95

3.94%

12

BOSCH LTD

21538.70

21303.5

1.09%

13

TECH MAHINDRA

458.35

476.40

3.94%

13

HIND PETROL

460.35

456.05

0.93%

14

BPCL

508.15

527.95

3.90%

14

ITC LTD

269.65

269.35

.0.11%

15

VEDANTA

327.95

338.85

3.63%

15

YES BANK

357.80

307.05

14.18%

172.05


NEXT WEEK STARS ( AS PER TECHNICAL ANALYSIS PRIDICTION ) NSE CASH:

NSE CASH: BUY ITC CASH ABOVE 276 TGT 300 SL 260 NSE CASH: BUY BUY KSCL CASH ABOVE 600 TGT 640 SL 570 NSE FUTURE:

NSE FUTURE: BUY MARUTI FUTURE ABOVE 8300 TGT 8500 SL 8200 NSE FUTURE: BUY IOC FUTURE ABOVE 425 TGT 445 SL 420


NSE - WEEKLY NEWS LETTERS ✍ TOP NEWS OF THE WEEK CANARA BANK'S Q2FY18 STANDALONE NET PROFIT DECLINES 27% YOY TO RS.260 CRORE 1 2 Standalone Results Q2FY18: (Rs. in crore) Q2FY18 YOY(%) NII

2783

14.0

NPA(%)

10.5

70

PROVISIONS

2156

36.0

NET PROFIT

260

27.05

Canara Bank reported missed the street estimates on net profit for Q2FY18. The NII for the quarter was 0.6% lower than estimated figure of Rs.2800 crore. While Net profit for the quarter was 20% below the street estimates of Rs.325 crore.The NII for the quarter rose by 14% yoy to Rs.2783 crore vs Rs.2442 crore in Q2FY17. This was largely driven by 8.6% yoy decline in interest expenses accompanied by 3.3% yoy decline in interest income.Asset quality of the bank remained poor as GNPA’s as percentage of total advances rose by 70 bps to 10.51% in Q2FY18 vs 9.81% in Q2FY17. Also, net NPA’s saw 33 bps surge in the quarter to Rs.7.02% vs 6.69% in previous year corresponding quarter. Total GNPA’s for the quarter also increased by 18% yoy to Rs.39164 crore in Q2FY18 vs Rs.33315 crore in Q2FY17.Further provisions for the quarter also saw 36% yoy increase to Rs.2156 crore in Q2FY18 vs Rs.33315 crore in Q2FY17. This also accompanied by rise in operating expenses by 7.4% yoy led to 27% decline in bottom-line to Rs.260 crore in Q2FY18 vs Rs.356 crore in Q2FY17.Advances and Deposits for the quarter saw 10% & 3% yoy increase for the quarter to Rs.358255 crore & Rs.496439 crore respectively. -


JAMMU AND KASHMIR BANK STANDALONE NET PROFIT AT RS.71 CRORE IN Q2FY18, VS NET LOSS OF RS. 602 CRORE YOY Standalone Results Q2FY18: (Rs. in crore) Q2FY18

YOY(%)

NII

722

12.7

NPA(%)

10.87

46

PROVISIONS

242

75.5

NET PROFIT

71

-

The NII for the quarter rose by 12.7% yoy to Rs.722 crore in Q2FY18 vs Rs.641 crore in previous year corresponding quarter. This was largely led by decline in interest expended by 9.6% yoy to Rs.943 crore in Q2FY18. Also, the interest income saw 1.1% yoy decline to Rs.1666 crore in Q2FY18 vs Rs.1685 crore in previous year corresponding quarter. Further, asset quality of bank looks better as GNPA’s for the quarter edged up by 5% yoy to Rs.5982 crore in Q2FY18 vs Rs.5682 crore in Q2FY17.As percentage of total advances of GNPA’s stood at 10.87 % a yoy decline of 46 bps vs 11.3% in Q2FY17. Also, NNPA’s for the quarter declined by 2% yoy to 4.76% in Q2FY18 vs 6.81% in Q2FY17. Provisions for the quarter saw substantial slump of 75.5% yoy to Rs.242 crore in Q2FY18 vs Rs.992 crore in Q2FY17. This led bank to post net profit of Rs.71 crore in Q2FY18 vs net loss of Rs.602 crore in previous year corresponding quarter. Advances also saw 8% yoy increase to Rs.51341 crore and deposits for the quarter remained flat at 70384 crore. -


INDIAN OIL CORPORATION Q2FY18 STANDALONE NET PROFIT RISES 18.4% YOY TO RS.3,696 CRORE : MIXED ESTIMATESINDIAN OIL Standalone Results Q2FY18: (Rs. in crore) Q2FY18

YOY(%)

REVENUE

110637

10.4

EBITDA

7373

28

EBITDA MARGIN (%)

6.7

92

NET PROFIT (%)

3696

18.4

Indian Oil Corporation Q2FY18 standalone results for the quarter registered a mixed on street estimates. Revenue for the quarter came in 11 % higher than the estimated figure of Rs. 99700 crore. EBITDA for the quarter came in 31.7 % lower than the estimated figure of Rs. 10789 crore. And lastly, net profit for the quarter came in 38.6 % lower than the estimated figure of Rs. 6023 crore. Indian Oil Corporation standalone revenue for the quarter came in at Rs. 110637 crore, registering 10.4% yoy increase. This was primarily driven by growth in business of petroleum products by 11.9%. EBITDA for the quarter rose by 28% yoy to Rs. 7373 crore with a corresponding margin expansion of 92 bps. EBITDA margin for the quarter stood at 6.7%. The PAT for the quarter came in at Rs. 3696 crore, yoy increase of 18.4%. Average Gross Refinery Margin for H1FY18 came in at $6.08 per barrel against $7.19 per barrel for corresponding previous half year. -


MARUTI SUZUKI INDIA Q2FY18 STANDALONE NET PROFIT RISES 3.4% YOY TO RS.2,484 CRORE 2

Standalone Results Q2FY18: (Rs. in crore) Q2FY18

REVENUE

YOY(%)

21768

7.1

EBITDA

3678

21.1

EBITDA MARGIN (%)

16.9

196

NET PROFIT (%)

2484

3.4

Maruti Suzuki Q2FY18 standalone results for the quarter came in mixed versus street estimates. Revenue for the quarter came in 1.1 % lower than the estimated figure of Rs. 22014 crore. EBITDA for the quarter came in 14.4 % higher than the estimated figure of Rs. 3216 crore. And lastly, net profit for the quarter came in 12 % higher than the estimated figure of Rs. 2218 crore. Maruti Suzuki standalone revenue for the quarter came in at Rs. 21768 crore, registering 7.1% yoy increase. EBITDA for the quarter rose by 21.1% yoy to Rs. 3678 crore with a corresponding margin expansion of 196 bps. EBITDA margin for the quarter stood at 16.9%. The PAT for the quarter came in at Rs. 2484 crore, yoy increase of 3.4%.


JUBILANT FOODWORKS Q2FY18 STANDALONE NET PROFIT RISES 124.5% YOY TO RS 48.5 CRORE Standalone Results Q2FY18: (Rs. in crore) Q2FY18

YOY(%)

REVENUE

726.60

EBITDA

102

59.4

EBITDA MARGIN (%)

14

442

48.50

124.5

NET PROFIT (%)

9.2

Jubilant Foodworks consolidated revenue for the quarter came in at Rs. 726.6 crore, registering 9.2% yoy increase. EBITDA for the quarter rose by 59.4% yoy to Rs. 102 crore with a corresponding margin expansion of 442 bps. EBITDA margin for the quarter stood at 14%. This margin expansion was aided by decrease in other expenses by 1.5% The PAT for the quarter came in at Rs. 48.5 crore, yoy increase of 124.5%. This was due to decrease in depreciation expense by 11.1%


1 MAHINDRA & MAHINDRA FINANCIAL SERVICES Q2FY18 STANDALONE NET PROFIT DECLINES 17.8% YOY 2

Standalone Results Q2FY18: (Rs. in crore) Q2FY18

YOY(%)

NII

911

16.3

NET PROFIT

78

17.8

M&M financial services NII for the quarter increased 16.3% yoy to Rs.911 crore in Q2FY18 vs Rs.783 crore in Q2FY17. This was due to substantial increase revenue from operations by 11% yoy to Rs.1661 crore in Q2FY18. Total Assets Under Management of Rs.49918 Crores as on Q2FY18 as against Rs.43855 Crores as on Q2FY17, a growth of 14%. Provisions and write-offs for the quarter increased by 46% yoy to Rs.445 crore. This led to 17.8% decline in net profits at Rs. 78 crore in Q2FY18.


HINDUSTAN UNILEVER Q2FY18 STANDALONE NET PROFIT RISES 16.4% YOY TO RS 1,276 CRORE: BEATS

ESTIMATES

Standalone Results Q2FY18: (Rs. in crore) Q2FY18

YOY(%)

REVENUE

8309

2.0

EBITDA

1797

19.8

EBITDA MARGIN (%)

21.6

394

NET PROFIT (%)

1276

16.4

Hindustan Uniliver ltd's Q2FY18 standalone results for the quarter registered a beat on street estimates. Revenue for the quarter came in 7.4 % lower than the estimated figure of Rs. 8971 crore. EBITDA for the quarter came in 9 % higher than the estimated figure of Rs. 1649 crore. And lastly, net profit for the quarter came in 5.5 % higher than the estimated figure of Rs. 1210 crore. Hindustan Uniliver ltd standalone revenue for the quarter came in at Rs. 8309 crore, registering 2% yoy decline. This was primarily driven by 10.5% yoy decline in revenues from personal care segment. EBITDA for the quarter rose by 19.8% yoy to Rs. 1797 crore with a corresponding margin expansion of 394 bps. EBITDA margin for the quarter stood at 21.6%. This margin expansion was aided by 6% yoy decline in purchase of stock in trade. The PAT for the quarter came in at Rs. 1276 crore, yoy increase of 16.4%. The board has declared interim dividend of Rs.8 per equity share of Rs.1 each.


AMBUJA CEMENTS Q3CY17 STANDALONE NET PROFIT RISES 50% YOY TO RS.351 CRORE : BEATS ESTIMATES 3

Standalone Results Q3CY17: (Rs. in crore) Q2FY18

YOY(%)

REVENUE

5376

5.0

EBITDA

773

30.6

EBITDA MARGIN (%)

14.4

282

NET PROFIT (%)

531

50

Ambuja cements' Q3CY17 standalone results for the quarter registered a beat on consensus estimates. Revenue for the quarter came in 139.1 % higher than the estimated figure of Rs. 2249 crore. EBITDA for the quarter came in 114.1 % higher than the estimated figure of Rs. 361 crore. And lastly, net profit for the quarter came in 36 % higher than the estimated figure of Rs. 258.2 crore. Ambuja cements' standalone revenue for the quarter came in at Rs. 5376 crore, registering 5% yoy increase. This was primarily driven by volume growth of 11% yoy to 5.02 MT in Q3CY17 vs 4.5 MT in previous year corresponding quarter. EBITDA for the quarter rose by 30.5% yoy to Rs. 772.57 crore with a corresponding margin expansion of 281 bps. EBITDA margin for the quarter stood at 14.4%. The PAT for the quarter came in at Rs. 351.2 crore, yoy increase of 50%.


HDFC BANK Q2FY18 STANDALONE NET PROFIT RISES 20% YOY TO RS 4,151 CRORE: IN-LINE WITH ESTIMATES Standalone Results Q2FY18: (Rs. in crore) Q2FY18

YOY(%)

NII

9652

20.8

NPA(%)

1.26

24

PROVISIONS

1476

97.10

NET PROFIT

4151

20

HDFC Bank reported its Q2FY18 results today. The quarterly results came in-line with street estimates. NII for the quarter was in line with estimates of Rs.9664 crore. While net profit for the quarter was 0.2% higher than street estimates of Rs.4143 crore. NII for the quarter registered 20.8% yoy rise to Rs.9652 crore in Q2FY18 vs Rs.7992 crore in previous year corresponding quarter. This was largely driven by 15% yoy rise in interest income Rs.19570 crore vs Rs.17069 crore in Q2FY17. Asset quality of the bank remained stable as GNPA as percentage of total advances rose by 24 bps to 1.26% in Q2FY18 vs 1.02% in Q2FY17. Also, net NPA’s for the quarter rose by 13 bps to 0.44% in Q2FY18 vs 0.30% in Q2FY17. However, total GNPA’s for the quarter rose substantially by 52% yoy to Rs.7702 crore vs Rs.5069 crore in Q2FY17. Provisions for the quarter almost doubled to Rs.1476 crore vs Rs.748 crore in previous year corresponding quarter. However, net profit for the quarter saw 20% yoy increase to Rs.4151 crore vs Rs.3455 crore in Q2FY17. Advances and deposits rose by 22% & 16% yoy respectively for the quarter to Rs.604866 crore & Rs.689345 crore. The advances growth was largely aided by 21.6% rise in retail loans and 23.6% rise in wholesale loans.


4 ZEE ENTERTAINMENT ENTERPRISES Q2FY18 CONSOLIDATED NET PROFIT RISES 119% 5 6 Consolidated Results Q2FY18: (Rs. in crore) Q2FY18 YOY(%) REVENUE

1785

2.7

EBITDA

679

51

EBITDA MARGIN (%)

38

1220

NET PROFIT (%)

521

119

Zee entertainment enterprises Ltd. consolidated revenue for the quarter came in at Rs. 1785 crore, registering 2.7% yoy increase. EBITDA for the quarter rose by 51% yoy to Rs. 679 crore with a corresponding margin expansion of 1220 bps. EBITDA margin for the quarter stood at 38%. This was largely driven by slump in operating cost by 24.7% yoy to Rs.578 crore in Q2FY18 vs Rs.768 crore in previous year corresponding quarter. The adjusted PAT for the quarter came in at Rs. 521 crore , yoy increase of 119% This was partly aided by minimal finance cost at Rs.0.28 crore vs Rs.8.5 crore in Q2FY17. Also, company exceptional gain of Rs.134.6 crore due to closure of its 2nd phase of transaction for disposal of sports broadcasting business to sony pictures network India pvt. Ltd.


7 INDIABULLS HOUSING FINANCE Q2FY18 CONSOLIDATED NET PROFIT RISES 24% YOY 8 9 Consolidated Results Q2FY18: (Rs. in crore) Q2FY18 YOY(%) REVENUE

1231

39

NET PROFIT (%)

852

24

Indiabulls Housing Finance’s standalone NII for the quarter came in at Rs. 1231 crore, registering 39% yoy rise. Provisions for the quarter increased 70% yoy to Rs 139 crore in Q2FY18 vs Rs.81.6 crore in previous year corresponding quarter. Therefore,Net profit for the quarter also surged 24% yoy to Rs.851 crore vs Rs.686 crore in previous year corresponding quarter. For the half year ended sept 30 company posted loan assets worth 1,00,200 crore in H1FY18 vs Rs.75,300.13 crore in H1FY17 a 33% yoy increase. Further, company also declared interim dividend of Rs.9 per share for face value of Rs.2 each.


HAVELLS INDIA Q2FY18 STANDALONE NET PROFIT RISES 17.3% YOY Standalone Results Q2FY18: (Rs. in crore) Q2FY18

YOY(%)

REVENUE

1777

14

EBITDA

257

26

EBITDA MARGIN (%)

14.5

137

NET PROFIT (%)

171

17.3

Havells India standalone revenue for the quarter came in at Rs. 1777 crore, registering 14% yoy increase. This was primarily driven by revenue from Lloyd consumer vertical to Rs.269 crore and 15% yoy increase in ligthing & fixtures segment to Rs.286 crore in Q2FY18 vs Rs.249 crore in previous year corresponding quarter. EBITDA for the quarter rose by 26% yoy to Rs. 257 crore with a corresponding margin expansion of 137 bps. EBITDA margin for the quarter stood at 14.5%.The PAT for the quarter came in at Rs. 171 crore , yoy increase of 17.3%.


CABINET APPROVES BANK CAPITALISATION PLAN OF RS 2.11 LAKH CRORE OVER FY18-19 - Union Finance Minister Arun Jaitley announced that the government would recapitalize public sector banks (PSBs) with Rs 2.11 lakh crore over the next two years. The recapitalization is expected to increase lending and investment and also create jobs, thereby improving the overall state of the economy. According to details given by Jaitley and his team, the recapitalization -- besides the push of Rs 2.11 lakh crore over the next two years will entail budgetary provisions to the tune of Rs 18,139 crore as well as recapitalisation bonds worth Rs 1.35 lakh crore. Once you strengthen banks, appetite for their stock will improve, says Finance Minister Arun Jaitley. Among key important decisions to revive the economy, government also announced mega Rs 7 lakh crore road building project to develop more than 83,000 km of roads. Under Indradhanush roadmap introduced in 2015, the government had announced to infuse Rs 70,000 crore in state-run banks over four years to meet their capital requirement in line with global risk norms, known as Basel-III. The finance minister also said banks would get Rs 18,000 crore under the Indradhanush plan. FM Arun Jaitley held a press conference on Tuesday today. He added that the late fee which has been already paid will be credited back to the taxpayers' accounts. While the total CGST revenue stands at Rs 14,042 crore, the SGST and IGST revenue are Rs 21,172 crore and Rs 48,948 crore respectively. V-GUARD HITS LIFETIME HIGH AS VOLUMES UP POST EARNINGS - Shares of VGuard Industries hit a lifetime high on a surge in buying after the company posted robust earnings in the September quarter. The company reported its net profit rose 25% to Rs 46.5 crore in the quarter ended September 2017 as against Rs 37 crore during the previous quarter ended September 2016. The company's sales rose 17% to Rs 559.9 crore in the quarter ended September 2017 as against Rs 479 crore during the previous quarter ended September 2016. VGuard deals in stabilisers, wire & cable and pumps majorly in south India. The company has 34% market share in Stabilisers business. It earned 65% of revenue from electrical segment, 31% electronics and remaining from new product segment in FY17.


RCOM STOCK GAINS POST ISSUING CLARIFICATION - Its stock gained 2% to Rs 16.15 on the BSE after the company issued a clarification on the future of its telecom business. As already announced on October 1, 2017, RCom has decided to adopt a 4G focussed strategy for profitable growth of its wireless business. Accordingly, RCOM will be optimizing its 2G and 3G footprint, and related infrastructure and human resources, with effect from 30 November 2017. The Company’s 4G-led strategy will be executed, as at present, on the back of capital-light access to India’s most extensive 4G mobile network, through already operational spectrum-sharing and ICR arrangements with Reliance Jio, the company said in a BSE filing. Apart from this, on October 25, news of Reliance Communication shutting down its DTH business had surfaced in the market. The company, being in the middle of debt restructuring, had planned to shut down its Direct-To-Home or DTH television business in the coming month. The move was taken as it failed to find any buyer for the business. The company has clarified in a filing to BSE stating that it will be closing down its DTH business next month. “DTH operations is a non-core business of the Company provided through Reliance BigTV Limited (RBTV), a subsidiary of the Company. RBTV’s DTH license is expiring by end of November 2017 and the Company is currently working with 3 leading DTH operators for seamless migration of customers to enjoy uninterrupted services.” stated the filing. CIPLA’S US SUBSIDIARY RECEIVES FINAL APPROVAL FOR GENERIC RENVELA TABLETS -

Cipla’s US subsidiary, InvaGen Pharmaceuticals Inc. has

received final approval for its Abbreviated New Drug Application for Sevelamer Carbonate tablets, 800 mg, from the USFDA to market a generic version of Genzyme’s Renvela tablets, 800 mg. Renvela tablets, 800 mg of Genzyme Corporation and are indicated for the control of serum phosphorus in adults with chronic kidney disease on dialysis. This approval is positive for the company as this is the niche product which could improve its market share in the US and hence it is expected to improve its US revenues. Renvela tablets had US sales of ~12,000 cr for the 12-month period ending August 2017, according to IMS Health. We believe its US business growth is expected to improve from 3QFY18E, driven by the launch of at least one niche product per quarter. Cipla’s focus on cost optimization also continues. This with a gradual recovery in India business should lead to improvement in margins. We have a positive outlook on the stock.


TVS MOTOR ANNOUNCES AN EXCLUSIVE PARTNERSHIP WITH MOTOPLEX S.A.S IN DOMINICAN REPUBLIC - TVS Motor has inked an exclusive partnership with Motoplex S.A.S of Grupo Bonanza, a leading automobile business house in the Dominican Republic. This partnership is in line with the company's plan to expand and strengthen its presence in the Caribbean region. As per this partnership, Motoplex S.A.S will develop and operate 40 TVS Motor Company dealerships in the Dominican Republic. Motoplex S.A.S currently operates through a network of more than 80 touch points in the region. This partnership with Motoplex S.A.S is a positive step for the company as Motoplex S.A.S, has a rich knowledge of the Dominican Republic and its customers. Their large network reach in this region makes them the perfect strategic partner for TVS Motor. This will help the company to improve its 2 Wheeler volumes. The company hopes to gain 150 bps market share in India 2Ws backed by new launches and success of existing strong brands (Jupiter and Apache). We believe the 2W industry to grow by 6-8% in FY18E driven by a normal monsoon and uptick in the economy. We have negative on the stock. LUPIN GETS USFDA NOD FOR KAPVAY TABLETS - Lupin announced that it has received final approval for its Clonidine Hydrochloride Extended-Release Tablets, 0.1 mg from the United States Food and Drug Administration to market a generic version of Concordia Pharmaceuticals Inc.’s Kapvay Extended-Release Tablets 0.1 mg. Lupin’s Clonidine Hydrochloride Extended-Release Tablets, 0.1 mg is the AB rated generic equivalent of Concordia Pharmaceuticals Inc.’s Kapvay Extended-Release Tablets 0.1 mg. It is indicated for the treatment of attention deficit hyperactivity disorder as monotherapy or as adjunctive therapy to stimulant medications. Clonidine Hydrochloride Extended-Release Tablets, 0.1 mg had annual sales of approximately USD 66 million in the US. ENGINEERS INDIA STOCK ZOOMS 8% AFTER Q2 FY18 - Engineers India stock zoomed 8% after the company’s PAT increased by 27% to Rs 119 crore in Q2 FY18. The company’s standalone revenue for the quarter came in at Rs 429 crore, registering 26.6% yoy increase. This was primarily driven by revenue growth in Consultancy & Engineering projects and Turn Key projects by 21.1% and 50.2% The stock is currently trading above its 200 DMA.


HDFC LIFE IPO TO OPEN ON NOV 7, 2017 - The Board of Directors of HDFC Life, which is a material subsidiary of Housing Development Finance Corp. Ltd (HDFC) has approved an IPO of up to 29 crore equity shares of Rs.10 each by way of an offer for sale. HDFC would be offering 19 crore equity shares and Standard Life (Mauritius Holdings) 2006 Limited would be offering upto 10 crore shares. This represents 9.57% and 5.43% respectively of the existing issued and paid-up equity share capital of HDFC Life. As per the RHP filed on 25 October 2017, the IPO includes the following reservations. Upto 2.99 crore equity shares (constituting 1.49% of the post-IPO paid up equity share capital of HDFC Life) for purchase by individuals and Hindu Undivided Family (HUF) shareholders of HDFC, as on August 18, 2017. Upto 21 lakh equity shares for (constituting 0.11% of the post-IPO paid up equity share capital of HDFC Life) for HDFC Life employees. Upto 8 lakh equity shares (constituting 0.04% of the post-IPO paid up equity share capital of HDFC Life) for purchase by HDFC employees. The IPO will be open for subscription by Anchor Investors on November 6, 2017 and open to the public on November 7, 2017. The issue will be closed on November 9, 2017. The price band for the issue will be intimated at a later date. STAR CEMENT RALLIES 5% AFTER HUGE BLOCK DEAL - Star Cement stock rallied 5% to Rs 115.95 after 85.5 lakh shares or 2% equity change hands in four blocks on the NSE at Rs 110-110.65 per share. The stock is currently trading above its 50 DMA RCOM TO SHUTDOWN DTH BUSINESS NEXT MONTH - On October 25, 2017, news of Reliance Communication shutting down its DTH business had surfaced in the market. The company, being in the middle of debt restructuring, had planned to shut down its Direct-ToHome or DTH television business in the coming month. The move was taken as it failed to find any buyer for the business. The Company issued its clarification in a filing to BSE stating that it will be closing down its DTH business next month. “DTH operations is a non-core business of the Company provided through Reliance BigTV Limited, a subsidiary of the Company. RBTV’s DTH license is expiring by end of November 2017 and the Company is currently working with 3 leading DTH operators for seamless migration of customers to enjoy uninterrupted services.” stated the filing.


JAIN IRRIGATION BAGS ORDER OF $24 MILLION - Jain Irrigations announced of receiving an order of $24 Million. The company titled as NaanDaan Jain Mexico is a subsidiary of Jain Irrigation Systems. The company has been awarded two contracts in Honduras. The overall value of these two contracts is US $ 23.77 million. As per the filing, the company will design, supply, install and commission the plastic pipe networks during the next 2.5 years. At least 6,000 farmers are expected to benefit from this project. The contracts were awarded by Ministry of Agriculture in Honduras. These projects would serve as models for Central American regions, and would align the company’s concept of “Resource to Root”. Jain Irrigations operates with more than 10,500+ associates, with manufacturing plants in 30 locations across the globe, and revenue of $1 Billion. PIRAMAL ANNOUNCES ALLOTMENT OF 4.6 LAKH CCDS

- Piramal Enterprises

announced the allotment of Compulsorily Convertible Debentures. The CCDs allotment has been done for Qualified Institutional Placement, wherein CCDs of the face value of Rs 1,07,600 each. These would be further convertible into equity shares of face value of Rs 2 each. In a meeting held today, the company approved the allotment of 464,300 CCDs to the eligible QIBs. The company has approved the allotment of CCDs to the Qualified Institutional Buyers or QIBs. The total would aggregate to Rs 4996 Cr. The issue opened on October 12, 2017, and closed on October 17, 2017.


RELIANCE NIPPON IPO RAISES RS 462.67 CR FROM ANCHOR INVESTORS

-

Reliance Nippon Life Asset Management Limited IPO raises Rs 462.67 Cr from anchor investors which opened and closed on October 24, 2017. The anchor book received an overwhelming response for the investors as it was subscribed 30+ times. Reliance Nippon Life Asset Management Limited allocated 18,360,000 shares to 35 anchor investors at the higher end of the IPO price band of Rs 252 per share. Few of the prominent names include: -Large Sovereign Wealth Fund - Abu Dhabi Investment Authority, Kuwait Investment Authority -Foreign institutional investors - Fidelity International, Morgan Stanley, Eastspring Investments, Columbia Threadneedle Investments, Pictet, DE SHAW and Neuberger Berman Top mutual fund houses - HDFC MF, Birla MF, SBI MF, UTI MF, DSP Blackrock MF, IDFC MF -Large private insurance companies - ICICI Prudential Life, Bajaj Allianz

LUPIN RECEIVED USFDA APPROVAL FOR GENERIC AXIRON TOPICAL SOLUTION - Lupin has received final approval for its Testosterone Topical Solution, 30 mg per actuation from USFDA to market a generic version of Eli Lilly and Company’s Axiron Topical Solution, 30 mg per actuation. Lupin is a manufacturer of branded plus generic formulations, biotechnology products, and APIs, earns ~47% from its North America business and ~25% from its India business. Lupin’s Testosterone Topical Solution is therapeutically equivalent to Eli Lilly and Company’s Axiron Topical Solution. It is indicated for replacement therapy in males for conditions associated with a deficiency or absence of endogenous testosterone. Testosterone Topical Solution had annual sales of ~USD 244 million in the US according to IMS MAT June 2017 data.


INFOSYS Q2FY18 CONSOLIDATED NET PROFIT RISES 7% QOQ TO RS 3,726 CRORE: BEATS ESTIMATES - Infosys ltd’s reported consolidated results for the quarter registered a beat on street estimates. Revenue for the quarter came in marginally lower than the estimated figure of Rs. 17630 crores. EBITDA for the quarter came in 25.9 % higher than the estimated figure of Rs. 4097 crores. And lastly, net profit for the quarter came in 6.6 % higher than the estimated figure of Rs. 3496 crores. Infosys ltd consolidated revenue for the quarter came in at Rs. 17567 crores, registering 2.9% QoQ increase. This was primarily driven by 6% QoQ increase in revenues from Life sciences, Healthcare and Insurance segment. EBITDA for the quarter rose by 2.9% QoQ to Rs. 5158 crores while EBITDA margin for the quarter remained flat at 29.4%. PAT for the quarter came in at Rs. 3726 crores, QoQ increase of 7%. In terms of guidance for FY18, company curtailed its guidance to 5.5%-6.5% from 6.5%-8.5% in constant currency growth. On operating margin front, guidance remained at 23%-25%. Utilisation for the quarter stands at 84.7% and Employee attrition stands at 21.4% as against the 21% in last quarter.


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