Reliance Jio sells 1.34% stake to General Atlantic for Rs6,598cr

Cipla submits application with USFDA for generic version of asthma drug

Bharti Infratel-Indus Towers merger may soon get completed

Tata Consumer to acquire PepsiCo’s stake in NourishCo Beverages

KNR Constructions Ltd bags orders worth of Rs2309.23cr from Irrigation & CAD Department, Govt. of Telangana

Biocon Biologics receives EU GMP certification for multiple Biosimilars manufacturing facilities in Bengaluru

KEC International wins new orders of Rs1,203cr

Bank of Baroda offers to monitor NBFC loan portfolios of all banks

Dr. Reddy received an EIR from the USFDA for its formulations facility at Bachupally, Hyderabad

Hero Moto will defer investments, save cash

JSW Energy says plans to buy GMR’s Odisha unit on hold due to Covid-19 disruption

RIL's Nowfloats forays into tele-medicine, looks to on-board 1 lakh doctors

Private equity firm KKR to invest Rs11,367cr in Reliance Jio for 2.32% stake

Gilead Sciences likely to seek nod to market anti-viral drug remdesivir in India

ONGC, NTPC to form joint venture for mega projects

Goldman sees worst India recession with 45% second quarter slump

The RBI may extend the loan moratorium facility by another three months

Debt binge to widen India’s fiscal gap to 13%: HSBC

Commercial mining to improve coal availability, attract FDI, say experts

Cement prices to rise by Rs15-20 per bag and demand to fall by 30%: Crisil

Petrochem, Chemical imports likely to face 15% Covid tax

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Cipla Ltd: Filed an ANDA with USFDA for Fluticasone propionate and Salmeterol inhalation powder , gener ic version of Advair Diskus of GSK. According to IQVIA, it has an estimated sales of USD2.9bn for the 12months ending March, 2020. Cipla received final approval for Dihydroergotamine Mesylate Nasal Spray 4mg/mL from USFDA with a CGT designation indicated for migraine headache. According to IQVIA, Migranal and its authorised generic equivalent had sales of approx. USD102mn for 12month period ending March, 2020.

Zen Technologies Ltd: The company has dedicated a small Research & Development team to develop a prototype of a ven-tilator, which is now complete and certification is under process. ZenTech is looking to commercially manufacture the same, as it has received interest from India and abroad.

Alembic Pharmaceuticals Ltd: Aleor JV r eceived an USFDA approval for Clobetasol Propionate Shampoo, 0.05% indicat-ed for the treatment of Scalp Psoriasis. According to IQVIA, the drug has an estimated market size of USD28mn as of December, 2019.

KCP Ltd: The company has informed that Cr isil while reaffirming the rating has revised the outlook to Stable; with Long term rating of A-/ Stable and Short term rating A2+

Acrysil Ltd: The company has incorporated wholly owned subsidiary Acrysil USA Inc. for the purpose of expansion of presence in USA. The subsidiary will help penetrate deeper in the markets by building a network across America and increase market share dealing in Kitchen, Bath Products and Tiles

The Week That Went By:

Benchmark Index started the week with a steeper fall and continued to trade lower throughout the day. Complete reversal was seen on 2nd trading session as Index soared higher with the help of IT and selective Pharma stocks but weakness persisted in Banking stocks which dragged the Index lower. In the mid-week, minor consolidation was seen but Pharma stocks took the leadership and pushed the Index higher. Banking and Auto stocks joined the momentum which helped Index to extend its rally. Auto and Pharma stocks continued to dominate and helped Index to extend its gains but gloomy banking stocks once again dragged the Index lower. Nothing has changed on the last day as after the RBI governor’s press conference, sharp fall was seen across the board. For the rest of the day, Nifty oscillated in the range and ended the session lower.

Revathi Equipment Limited:

CMP- Rs291 | Target Price- Rs391 | Horizon- 12 months| Industry-Industrial Machinery

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Result Synopsis

Company Result This Week

Huhtamaki PPL Ltd CMP: Rs185 Target: Rs320

The net sales for the quarter came in at Rs5,746mn as compared to Rs6,294mn in the same quarter last year; drop of 8.7%. As per the management, the unprecedented Covid-19 pandemic coupled with the nationwide lockdown led to downscale of company’s operations that impacted the revenues during the quarter under review. The EBITDA margin for the quarter under review stood at 9.3% as against 13.9% in the same quarter last year. This was mainly impacted on account of lower sales, increase in staff cost and other expenses in the current quarter. The net profit stood at Rs273mn as against Rs420mn in the comparative quarter. The adjustment of taxes pertaining to prior years actually safeguarded the PAT. For the full year, the company reported a PAT of Rs1700mn (including the tax adjustments of Rs319.90mn that inflated it) as against Rs349mn in CY18. The margins stood at 11.4% as against 9.4% in CY18. In order to preserve the financial resources considering the current economic condition, the Board has revised its recommendation for payment of final dividend (for the year ended 31st December, 2019) to Rs3 per equity share from the earlier Rs5 per equity share; subject to approvals. The EPS stands at Rs3.62. Outlook and Recommendations: The company has reported tepid results for the quarter under reference. Although the industry is an integral contributor to the essentials, the pandemic situation did impact both the economy (as a whole) and the industry to some extent. Keeping in mind the necessary consumer shift to hygiene and food safety alternatives, the industry may have the chance to cater to more demand which in turn will boost the FMCG sector and invariably the company; contingent to how the contagion situation pans out. Although the management is being conservative with regards to the future operations which would largely depend on the how the pandemic situation develops; saving on the financial resources in such grim situation indicates an optimistic view of the company going forward. We thus stand by our conviction on the stock and maintain the target price of Rs320 over a 12 months horizon.

Cipla Ltd CMP: Rs639 Target: Rs751

The consolidated total operating income for the quarter dropped by 0.6% to Rs43,762mn as compared to Rs44,040mn in the same quarter last year. The Ebitda margins dropped to 14.5% as against 21.8% in the same quarter last year. The operational performance was weakened by the Covid-19 disruption and high base for sales last year. The reporting quarter also saw the normalisation of margins and US revenues as the corresponding period last year saw robust sales of its anti-hyperparathyroidism drug Cinacalcet in the US. The other expenditure increased by 3.6% primarily as expenses on account of purchase of stock in trade soared by more than two-thirds. It included the Goa remediation charges as well. The profits declined by 33.3% to Rs2,385mn as against Rs3,576mn in the comparative quarter on account of a high base and relatively lower sales amid the lockdown. The EPS for the quarter stood at Rs3.05. For the full year, the net sales clocked growth of 4.7% at Rs171,320mn. The net profit was almost flat at 14,995mn. Outlook and Recommendations: The lockdown to combat the spread did impact the performance of the company. There was an initial trigger of panic buying of medicines but the extension of the shutdown did hurt sales. There is uncertainty in demand due to the pandemic but with the monsoons approaching demand for anti-infectives is expected to rise. Cipla signed a non-exclusive licensing agreement with Gilead Sciences Inc. for the manufacturing and distribution of the investigational medicine Remdesivir. This could be one of the key developments to be watched. Also the company has its molecule pipeline on track for approvals and launches. Overall we feel, that the company is making all the efforts to capitalize on the opportunities emerging in the unprecedented situation being faced globally. We continue to be optimistic on the working of the company and maintain the target of Rs751 over a 12 months horizon.

Paushak Ltd CMP: Rs1840 Target: Rs2800

The net sales for the quarter under review came in at Rs292.8mn as compared to Rs385.5mn for the same quarter last year, recording a de-growth of 24.0%. For the full year FY20 revenue came in at Rs1,379.0mn as compared to Rs1,395.1mn in FY19, decline of 1.2% and net profit de-grew by 10.4% to Rs349.1mn as compared to 389.7mn. The company had reported an exceptional item to the tune of Rs24.2mn in FY20 as compared to Rs101.5mn in FY19 which were the proceeds of sale of land. The EBITDA margins for the quarter ending March 2020 came in at 26.7% as compared to 33.9% in the same quarter last year. The net profit for the quarter ending March 2020 came in at Rs63.8mn as compared to Rs96.9mn in the same quarter last year, de-growth of 34.2%. The EPS for the quarter under review came in at Rs20.7 as compared to Rs31.4 in the corresponding period last year The Board has recommended dividend of Rs6 per equity share of face value of Rs10 per share. Outlook and Recommendations: Considering the topline, the company has reported tepid set of numbers for the quarter under review. On y-o-y basis, the company has performed well if one excludes the exceptional item. On the margin front, for the full year, the company has reported EBITDA margin of 31.0% as compared to 28.8% y-o-y and net profit margin (excluding exceptional items) of 23.5% as compared to 20.6% which is a quite decent performance. In the long run, the company has plans to expand its capacities as well as its capabilities. Paushak is focussing on de-risking its products portfolio, improving the ability to handle complex reactions, add new customers and newer geographies. The issues related to environment concerns which China has been facing can be positive for the company; however, one should be cautiously bullish on this aspect till China comes back on track. Paushak will continue to benefit from its established market position, diverse product profile and strong operating efficiency in times to come. In a recent update on the social media, the company mentions about giving salary hikes to their employees which comes at a time when there is a major slow down where many of the employers are seen cutting salaries. This gesture by Paushak can only indicate a strong undercurrent that the Management sees for the future growth of the company. Considering all the factors mentioned above, a very small company like Paushak can make use of the available opportunities and grow in size. In the near term one may see short term pain resulting from country wide lock down; and hence we would like to go conservative and reduce the target price to Rs2800 with a horizon of 12 months. However, we maintain our cautiously bullish stance on the company as we see good growth in long term.

NACL Industries Ltd CMP: Rs28 Target: Rs45

The total revenue for the quarter grew by 55.5% to Rs2,766mn as compared to Rs1,779mn in the same quarter last year. The company has achievement milestone topline of Rs10bn in FY20. For the full year FY20, revenue came in at Rs10,149mn as compared to Rs8,655mn in FY19, growth of 17.3% and net profit grew to Rs158mn as compared to loss of Rs84mn. Margins have started surfacing back due to the cost cutting initiatives taken by the company. The EBITDA margin for the quarter under review stood at 6.9% as against (10.7%) in the corresponding quarter of the last year. The net profit for the quarter under review grew to Rs50mn against a net loss of Rs162mn in the comparative quarter last year. The EPS for the quarter under review came in at Rs0.3 Outlook and Recommendations: Currently, the Indian agrochem industry has a big opportunity to undertake manufacturing of active ingredients which are scheduled to lose patent protection in the next few years and NACL is one among the few major domestic manufacturers of technical grade pesticides. NACL is aptly placed to reap the benefits of any change in the industry dynamic of the chemical sector. After a fairly long time, the company has shown a tad growth in terms of volumes as well as value which is indicating a change in strategy by the Management. During the quarter under review, the company had incorporated a wholly owned subsidiary i.e. NACL Spec-Chem Limited to carry out the business of agrochemicals (including insecticides and other specialty chemicals). Moreover, the warrant holders (dated 27th March, 2019) of the company had exercised their right and converted the same into equity to the tune of 2.5cr shares of FV=Rs1 at an issue price of Rs32, thus increasing the paid up share capital from Rs167.6mn to Rs192.6mn. Moreover, the company aims at adding new capacities which is directed towards further growth of technical and formulation business, expansion, upgradation, debottlenecking, new product development & product registrations abroad. All the factors mentioned above are summing up to the gradual growth in the company while focusing on R&D and adding to our conviction of a slow and steady turnaround in times to come; thus we maintain our target price of Rs45 with a long term vision.

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Result Synopsis

Company Result This Week

Supreme Petrochem Ltd CMP: Rs154 Target: Rs275

The total revenue for the quarter degrew by 19.4% to Rs6,629mn as compared to Rs8,220mn in the same quarter last year. The EBITDA margin for the quarter under review stood at 5.9% as against 7.9% in the corresponding quarter of the last year. As mentioned in our earlier notes as well, the company is in capex mode and is adding capacities as well as capabilities which explains the increase in interest cost as well as the higher depreciation for a debt free company. The net profit for the quarter ending March 2020 came in at Rs235mn as against Rs389mn in the comparative quarter last year. The EPS stands at Rs2.44 as compared to Rs4.04 in the same period last year. However, when one compares the results on yearly basis, which is also the ideal way to analyse a business like Supreme Petro, the company has reported a degrowth of 14.7% with revenues earned at Rs27,242mn in FY20 as compared to Rs31,938mn in FY19. However, the net profit earned during the full year stood at Rs1,027mn as compared to Rs492mn; fetching an EPS of Rs10.64 as compared to Rs5.10 which is indicating a shift to value products rather than volume product. Outlook and Recommendations: Stability in global styrene monomer (SM) prices will benefit the company and also push the operational efficiencies. We have been constantly mentioning about a shift in strategy of Supreme Petro while focusing on value and high margin products instead of high-volume products. Supreme Petro is also looking at maintenance capex of various process and products improvement projects, debottlenecking activities of the EPS plant in Manali, replacement and retrofitting of XPS lines and replacement of old hardware etc. and thus aiming at launching new high value products in times to come. In a recent update in May 2020, the company mentioned of operations being commenced with one line of Polystyrene which was already operative and commencement of production through its 2nd line at its Nagothane Plant; thus, operating at around 60% of its normal production capacity. Company’s’ plant at Manali has also partially commenced production of Expanded Polystyrene at around 50% of its normal production capacity. The Management of the debt free company involved in capex plan fuelled with proceeds from internal accruals, in process for a buyback from the market, has been generous and rewarding to the shareholders with special dividend of Rs3 and interim dividend of Rs1 in the month of October 2019 and now with a proposal for a final dividend of Rs1.5 per share. Not to forget, the cash reserves of the company for the year ending is strong with a more or less healthy balance sheet. All these positive factors seem to indicate good times to re-appear for Supreme Petro in quarters to come. Thus, we maintain our target price of Rs275 over a 12 month horizon.

Nesco Ltd CMP: Rs390 Target: Rs640

The net sales for the quarter under review came in at Rs1,177mn as compared to Rs935mn for the same quarter last year, recording a growth of 25.9%. The EBITDA margins came in at 60.6% as compared to 69.8% in the same quarter last year, impacted by the increase in other expenditure. The net profit for the quarter ending came in at Rs529mn as compared to Rs514mn in the same quarter last year, growth of 3%. The EPS for the quarter is at Rs7.5. On the segmental front, the Nesco IT Park revenues grew by 86% compared to the same quarter last year. The BEC segment reported a drop of 2% while the Indabrator segment de-grew by 40%. The Nesco foods segment also dropped by 19%. For the full year, BEC clocked revenues of Rs1,586mn as against Rs1,573mn in FY19 despite the partial lockdown in March 2020. The Company is preparing plans for constructing new halls and upgrading the existing halls. The Nesco IT Park –Tower 04 started generating revenue during the year. It clocked revenues of Rs2141.6mn as compared Rs1369.7mn in previous year. The company is preparing plans for the next building in this division. The company has spent about Rs570cr on construction of Tower-04 in Nesco IT Park and for upgrading of existing Exhibition Centre halls. The company continues to be debt free with Rs685.66cr as liquid resources as of 31st March 2020. The company had declared interim dividend of 150% (Previous year 125%) for FY20 which was paid in March 2020. Five halls of Bombay Exhibition Center are provided to Municipal Corporation of Greater Mumbai (MCGM) where they have made large quarantine center to help fight the ongoing pandemic. Outlook and Recommendations: The results for the quarter under reference showed a decent growth on the topline. The operational efficiency was impacted due to higher other expenditure. On the segmental performance, IT park-4 did have a good contribution during the quarter. The full year numbers were better than our expectations. Due to the ongoing pandemic there has been a lockdown witnessed, but did not have much of an impact on the quarter performance. However, there is uncertainty with regard to the impact going forward. FY21 would be the year to take the hit as the lockdown would bring a halt to the exhibitions until further clarity. Furthermore, the exhibitions when they start would also have revised norms and framework to work on. The expansions also would be delayed by 6-9 months on an average. There could be some slowdown also witnessed for the pending occupancy deals for IT park-4. But there would be no impact on the cash flows from the other IT parks as work from home has been implemented across. We feel that this unprecedented situation could dent or slowdown the current year performance of the company but with the optimism that the healthy balance sheet, positive free cash flow would be the booster once all gets back on track. The stock had hit the second target of Rs800; making a high of Rs816 in Feb 2020, and was on the perfect growth track had it not been hit by the unforeseen unavoidable circumstances. In order to factor in the current situation we do have to tone down our target to Rs640 over a 12 months horizon.

Recommendations adjusted as per Corporate Actions

Company Reco Target Corp Action Adj Price Adj Tgt Price

Upside

IHP Ltd 341 600 Bonus 1 : 1 171 500 257%

Engineers India Ltd 211 200 Bonus 1 : 1 105 200 226%

Gulshan Polyols Ltd 390 500 Stock Split from Rs.FV 5 to Rs.FV 1 110 78 208%

Nesco Ltd 2397 3200 Stock Split from Rs.FV 10 to Rs.FV 2 479 640 64%

Castrol India Ltd 447 550 Bonus 1 : 1 223 200 80%

Hikal Ltd 143 325 Bonus 1 : 2 95 216 50%

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Coverage Universe Valuations

Company Reco Reco at (Rs)

CMP (Rs)

Tgt price (Rs)

Upside 1M Var 3M Var 12M Var

Supreme Petrochem Ltd BUY 77 154 275 79% 4.8% -6.3% -24.0%

Shanthi Gears Ltd BUY 107 80 150 88% -14.3% -13.0% -31.6%

Hind Rectifiers Ltd BUY 69 114 275 141% -16.0% -34.7% -8.3%

KCP Ltd BUY 71 38 105 173% -11.9% -36.6% -54.9%

The Hitech Gears Ltd BUY 298 75 300 303% -26.4% -52.8% -69.0%

Bharat Bijlee Ltd BUY 787 644 1500 133% -3.0% -18.7% -33.8%

Triveni Turbines Ltd BUY 92 60 150 150% -13.2% -36.1% -45.9%

Siemens Ltd BUY 1128 1015 1350 33% -10.4% -26.0% -13.2%

GMM Pfaudler Ltd BUY 332 3893 3200 -18% 4.0% 18.4% 223.0%

Alicon Castalloy Ltd BUY 288 207 650 214% -14.5% -42.4% -65.6%

Gufic Biosciences Ltd BUY 50 57 120 111% -7.9% -19.6% -31.2%

Excel Industries Ltd BUY 380 549 1200 119% -4.5% -19.2% -51.0%

Vesuvius India Ltd BUY 1165 871 1300 49% -1.4% -26.6% -24.6%

Munjal Showa Ltd BUY 191 75 191 153% 3.2% -34.1% -50.1%

Bharat Rasayan Ltd BUY 2747 6211 9000 45% -1.4% -19.6% 46.8%

Alkyl Amines Chemicals Ltd BUY 391 1801 2250 25% 2.9% 8.2% 124.0%

Grauer and Weil (India) Ltd BUY 45 32 65 105% -18.4% -36.9% -37.5%

Texmaco Rail & Engineering Ltd BUY 91 22 91 316% -16.9% -24.9% -68.5%

Nagarjuna Agrichem Ltd BUY 29 28 45 59% 16.9% -11.6% -1.7%

ITD Cementation India Ltd BUY 158 33 100 202% -16.7% -40.4% -72.8%

Westlife Development Ltd BUY 266 281 450 60% -4.4% -41.8% -21.5%

Dynamatic Technologies Ltd BUY 2160 475 1700 258% -20.9% -45.2% -67.7%

Hitech Corporation Ltd BUY 175 62 125 102% 12.5% -18.6% -30.4%

NRB Bearings Ltd BUY 138 59 138 133% -17.1% -36.3% -65.3%

Kokuyo Camlin Ltd BUY 132 46 132 190% -14.2% -35.0% -45.7%

Timken India Ltd BUY 883 785 1250 59% -4.1% -22.8% 17.8%

Morganite Crucible (India) Ltd BUY 1047 1345 2500 86% -5.6% -40.4% 3.2%

Vardhman Special Steels Ltd BUY 151 44 110 151% -0.9% -36.9% -52.5%

Zen Technologies Ltd BUY 115 37 125 241% -8.1% -32.0% -48.6%

KSB Ltd BUY 820 481 1100 129% -4.9% -30.3% -29.7%

Thermax Ltd BUY 1019 702 1230 75% 0.0% -27.6% -27.0%

Transpek Industry Ltd BUY 1547 1677 2000 19% 20.7% 3.9% 22.4%

BASF India Ltd BUY 1954 1044 1400 34% -1.9% 25.6% -19.7%

Artson Engineering Ltd BUY 64 23 45 100% 6.9% -35.7% -43.6%

Remsons Industries Ltd BUY 104 49 130 163% -16.4% -35.0% -39.8%

Snowman Logistics Ltd BUY 33 26 55 112% -13.3% -40.2% -15.3%

Alembic Pharmaceuticals Ltd BUY 605 898 1100 23% 40.2% 37.9% 69.4%

SKF India Ltd BUY 1942 1393 1942 39% -5.5% -29.4% -24.3%

HFCL Ltd BUY 25 9 25 185% -21.9% -48.2% -57.2%

Sudarshan Chemical Industries Ltd BUY 372 365 500 37% -11.6% -19.5% 18.0%

Huhtamaki PPL Ltd BUY 254 185 320 73% -12.2% -35.1% -28.8%

Mishra Dhatu Nigam Ltd BUY 123 190 190 0.2% -9.8% -17.4% 47.0%

Anuh Pharma Ltd BUY 142 161 175 9% 9.6% 2.3% 19.2%

Kirloskar Pneumatic Co. Ltd BUY 134 99 192 93% -10.1% -32.0% -46.3%

Integra Engineering India Ltd BUY 37 21 50 139% -12.2% -38.9% -56.8%

ICICI Bank Ltd BUY 535 291 430 48% -13.4% -45.0% -28.3%

Srikalahasthi Pipes Ltd BUY 205 129 250 94% -4.6% -41.5% -28.2%

Acrysil Ltd BUY 115 62 150 142% -12.1% -52.9% -42.6%

Paushak Ltd BUY 2210 1840 2800 52% -5.4% -31.7% -19.9%

FDC Ltd BUY 240 241 325 35% -2.4% -6.9% 29.4%

Tube Investments of India Ltd BUY 340 316 425 34% -7.1% -42.0% -16.4%

Cipla Ltd BUY 612 639 751 18% 8.8% 49.6% 15.3%

S H Kelkar and Company Ltd BUY 51 50 80 59% -33.6% -55.0% -66.7%

Revathi Equipment Ltd BUY 291 305 391 28% 3.0% -39.9% -10.4%

IHP Ltd BUY 171 140 500 257% -6.7% -33.2% 3.5%

Engineers India Ltd BUY 105 61 200 226% -7.3% -25.4% 8.5%

Gulshan Polyols Ltd BUY 78 25 78 208% -9.5% -45.0% -47.7%

Nesco Ltd BUY 479 390 640 64% -10.7% -46.7% -18.2%

Castrol India Ltd BUY 223 111 200 80% -5.1% -28.2% 53.7%

Hikal Ltd BUY 95 117 175 50% 6.0% -12.0% 3.7%

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Pharma & IT sector has given a breakout from a flag pattern which indicates bullish momentum will continue. Banking indices will remain as a weak spot for the markets. After a 4-week correction, FMCG stocks came into limelight and successfully closed above 200WMA which is a classic trend reversal indication. Metal sector continue to oscillate in a symmetrical triangle pattern, breakout in either side will decide the trend. Selective buying will be seen in specific Auto stocks.

MARKET OUTLOOK

NIFTY (WEEKLY)

BANK NIFTY (WEEKLY)

Page No 6 Please Turn Over Please Turn Over

NIFTY 50 COMPONENTS (WEEKLY PERFORMANCE)

SECTORAL PERFORMANCE

HDFC Bank -5.11

Hero Motocorp -2.29

Hindalco 4.58

HUL -2.18

ICICI Bank -9.19

Indusind Bank -18.69

Infratel 1.95

INFY 6.09

IOC 0.20

ITC 13.56

Jsw Steel -4.60

Kotak Bank -0.95

LT -5.05

M&M 11.67

Maruti 0.53

Nestle India -1.09

NTPC 0.28

ONGC 0.66

PowerGrid -2.26

Reliance -1.39

SBIN -9.22

Shree Cement 4.15

Sun Pharma 5.10

Tata Motors -1.31

Tata Steel 0.68

TCS 5.89

Tech Mahindra 3.49

TITAN 0.24

Ultratech 2.07

UPL -1.93

VEDL -3.89

Wipro 3.21

Zee Entertainment 0.86

Adani Ports 0.94

Asian Paints 3.73

Axis Bank -12.91

Bajaj Auto -3.72

Bajaj Finserv -8.07

Bajaj Finance -8.92

Bharti Airtel 6.88

BPCL -1.35

Britannia 1.69

Cipla 12.39

Coal India -3.01

DR Reddy’s Labs 4.18

Eicher Motors -1.41

Gail 1.63

Grasim 2.85

HCL Tech 3.76

HDFC -7.23

* Gain/ Loss in %

After a 3 week consolidation, Pharma sector continued their outperformance and ended the week with gains of over 5%. Heavyweight Cipla (+12.39%) was the top gainer followed by Auropharma(+9.54%), PEL(+7.19%), Lupin(+6.31%). Divis Lab(0.63%) was the only underperformer. Sector has given a breakout from a flag pattern which indicates the momentum will continue in the future.

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SECTORAL GAINER

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Nothing has changed for Banking stocks as underperformance continued. With a loss of 8.26%, BankNifty underperformed the Frontline Index. Each and every components has ended the week with a loss.

SECTORAL LOSER

Page No 8

Market Cap (Rs cr ) 7,57,588

52 week H / L (Rs) 2,190.70 / 1,792.40

BSE Code 532540

NSE Code TCS

Investment Rationale:

TCS has given a breakout from a Flag and Pole pattern, the same pattern breakout was observed in IT sector too which confirms the stock pattern breakout.

As depicted in the chart, RSI has breached its long term trendline.

Price breakout was also confirmed with a volume breakout.

Recommendation: We recommend a BUY on the company at cur rent market pr ice of Rs2020 with the closing stop loss of Rs 1860 for a target of Rs2140-Rs2270 with the perspective of 1–3months.

Overview: Tata Consultancy Services Limited (TCS) is an Indian multinational

information technology services, consulting and business solutions company headquartered

in Mumbai, Maharashtra. It is a subsidiary of the Tata Group. The company operates

through 58 subsidiaries and its service portfolio includes application development and

maintenance, business intelligence, enterprise solution and consulting services.

Page No 7

TCS Target Price Rs 2140 -Rs 2270 Horizon 1-3 Months

CMP– Rs 2020

SNAPSHOT

DISCLAIMERS AND DISCLOSURES- Progressive Share Brokers Pvt. Ltd. and its affiliates are a full-service, brokerage and financing group. Progressive Share Brokers Pvt. Ltd. (PSBPL) along with its affiliates are participants in virtually all securities trading markets in India. PSBPL started its operation on the National Stock Exchange (NSE) in 1996. PSBPL is a corporate trading member of Bombay Stock Exchange Limited (BSE), National Stock Exchange of India Limited (NSE) for its stock broking services and is Depository Participant with Central Depository Services Limited (CDSL) and is a member of Association of Mutual Funds of India (AMFI) for distribution of financial products. PSBPL is SEBI registered Research Analyst under SEBI (Research Analysts) Regulations, 2014 with SEBI Registration No. INH000000859. PSBPL hereby declares that it has not defaulted with any stock exchange nor its activities were suspended by any stock exchange with whom it is registered in last five years. PSBPL has not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has its certificate of registration been cancelled by SEBI at any point of time. PSBPL offers research services to clients as well as prospects. The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report. Other disclosures by Progressive Share Brokers Pvt. Ltd. (Research Entity) and its Research Analyst under SEBI (Research Analyst) Regulations, 2014 with reference to the subject company (s) covered in this report-: · The content used is from different Newspaper articles and could be a direct reference as mentioned in the article. . PSBPL or its associates financial interest in the subject company: NO · Research Analyst (s) or his/her relative's financial interest in the subject company: NO · PSBPL or its associates and Research Analyst or his/her relative's does not have any material conflict of interest in the subject company. The research Analyst or research entity (PSBPL) has not been engaged in market making activity for the subject company. · PSBPL or its associates actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research Report: NO · Research Analyst or his/her relatives have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research Report: NO · PSBPL or its associates may have received any compensation including for brokerage services from the subject company in the past 12 months. 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