religare morning digest · srikalahasthi pipes ltd 18-aug-17 362 416 14.8% 365.5 ... oriental...

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Religare Morning Digest

October 25, 2017

Nifty Outlook

VWAP (Expiry till date) Max OI (Call) Max OI (Put)

NIFTY 9990 10300 10000

Markets ended marginally higher amid mixed cues. It advanced in the first hour, tracking firm global markets but anxiety ahead of several index majors result capped upside. In line with the benchmark, sectoral indices too had a lackluster session and mostly ended on flat note. However, noticeable recovery was witnessed in the PSU banks and select media counters which helped their respective indices to close on firm note.

Markets are at record high but lack broader participation, citing mixed local cues. Participants are closely eyeing the result announcements and making adjustment to their portfolio accordingly. Besides, they’re busy in rollover and unwinding of leverage trades ahead of F&O expiry. Broadly, indications are in the favor of further consolidation in Nifty and thus traders should focus more on stock selection.

Sectors to watch

Sector Name Outlook

AUTO STABLE

ENERGY STABLE

REALTY WEAK

News

Religare Super Ideas**

FII & DII Cash Segment (Rs. in Cr.) Trade Stats

Category Amt. MTD FYTD

FII -82 -8369 -57707

DII 308 9385 71458

NO OF CON-

TRACTS

TURNOVER

IN CR

IDXFUTS 331555 27365

IDXOPT 6102506 520896

STKFUTS 1364836 100399

Derivative Ideas **

HDFC Bank’s Q2FY18 result was in line with expectation. Net interest income rose by 22% YoY to Rs 9,752crs, driven by average growth of 17.6% and a core net interest margin for the quarter of 4.3%. The company’s net profit increased by 20% YoY to Rs 4,151crs, despite sharp increase in provisions and tax expenses. Asset quality was largely stable for the quarter as gross non-performing assets (NPA) increased mildly to 1.26% (from 1.24% QoQ) but net NPA fell to 0.43% (from 0.44% QoQ).

ZEEL’s Q2FY18 result was a mix bag. Net sales declined by 6.7% YoY to Rs 1,582crs. Advertising revenue increased by 3% YoY to Rs 986crs, mainly aided by festive season. However, subscription revenue declined 14% YoY to Rs 501crs. EBITDA increased 17.2% YoY to Rs 476.4 crs and EBITDA margin expanded by 610 basis points YoY to 30.1%. Net profit shot up by 147.8% YoY to Rs 590.8crs, largely led by proceeds from sale of sports broadcasting business (Rs 134.6crs).

Infosys Ltd. reported 7% QoQ growth in net profit at Rs 3,726crs in Q2FY18. Revenue during the quarter increased by 2.9% QoQ to Rs 17567crs. Revenue growth in constant currency terms was 2.2% for the quarter.

*FII & DII data as on 23rd October 2017

Scrip Buy/Sell CMP Initiation SL* Target

GSFC BUY 145.75 138-142 136 150

DRREDDY SELL NOV

FUTS 2382 2390-2400 2440 2310

Instrument B/S Lot INITIATION

RANGE SL TARGET

GAIL BUY

450CE 2000 11-11.50 7 20

**Please note that the given technical and derivative recommendations are "valid for

taking position" only on recommended date and in the given range.

*Please note - Stoploss is on closing basis for delivery recommendation and intraday



October 25, 2017

Investment Pick - Nilkamal Ltd

Nilkamal Ltd is an industry pioneer in the manufacturing business of moulded furniture and material handling products with diversified product profile across various segments

along with a strong customer base. It also has presence in the retail business of lifestyle furniture, furnishings and accessories under its brand '@home' & Nilkamal Mattresses.

Led by demand uptick and company's efforts towards expanding its reach & product offerings, we expect Nilkamal's consolidated revenue to grow at a faster pace by 9.3% CAGR

over FY17-20E. Margins are likely to revive from FY19E, aided by operating leverage and stability in the input cost. We recommend a BUY on the stock with target price of Rs 2,097

with a 12 to 15 months perspective.

Scrip CMP Target Duration Recommendation Price

NILKAMAL 1603.80 2,097 9-12 Months 1608.80

GAIL added around 5.7% in open interest as fresh long

positions with some delivery based buying in previous

session. Current chart pattern too indicate fresh surge in

price. We suggest buying GAIL November Options as per

levels mentioned below.

Strategy: Buy GAIL NOV 450CE BETWEEN 11-11.50, SL-

7, TGT-20

Derivative Ideas Religare Super Ideas

Gujarat State Fertilizers & Chemicals Limited

(GSFC)

Dr. Reddy's Laboratories Limited - DRREDDY

(DRREDDY)

GSFC has been consolidating in a broader range for last

five months. After retesting the support zone of moving

averages, it has again reached closer to the upper band

of the range and likely to see breakout this time. We

advise traders to initiate fresh long in the given range.

Like other pharma counters, DRREDDY has also witnessed

decent recovery in the passing month. However, it’s

currently struggling around the resistance zone of moving

averages around 2440 and indications are in the favor of

fresh decline. Traders should use this phase to go short in

the given range.



October 25, 2017

Religare Investment Calls

Name of the Company Reco Date Reco Price Target Price Upside % Previous day Closing Price

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 267

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 919.25

Greenply Industries 3-Feb-17 268 304 13.4% 270.15

Arman Financial Services 22-Feb-17 226 340 50.0% 217

Indo Count Industries Ltd. 17-May-17 198 240 21.2% 114.55

SML Isuzu 25-May-17 1,247 1,525 22.3% 965.3

APL Apollo Tubes 12-July-17 1,596 2,352 47.4% 1,870.45

Force Motors 27-July-17 4,104 4,897 19.3% 3,593.70

Zee Entertainment Enterprises 28-July-17 539 592 9.8% 525.95

CRISIL 01-Aug-17 1,858 2,419 30.2% 1,775.40

LIC Housing Finance 09-Aug-17 681 748 9.8% 633.85

Eicher Motors Ltd 09-Aug-17 31,630 40,467 27.9% 31,483.30

Wonderla Holidays 17-Aug-17 339 430 26.8% 367.1

The Byke Hospitality 17-Aug-17 195 242 24.1% 168.95

Century Plyboards 18-Aug-17 251 307 22.3% 279.2

Srikalahasthi Pipes Ltd 18-Aug-17 362 416 14.8% 365.5

Jain Irrigation Systems Ltd. 23-Aug-17 93 125 34.4% 95.5

Mold-Tek Packaging Limited 31-Aug-17 301 340 13.0 % 331

Swaraj Engines Ltd 31-Aug-17 1,985 2,201 10.9% 2,038.35

Mayur Uniquoters Ltd 01-Sept-17 360 460 27.7% 432.9

Castrol India 01-Sept-17 389 426 9.6% 375.7

Symphony Ltd 07-Sept-17 1,297 1,632 25.8% 1,409.55

Garware Wall Ropes Ltd 12-Sept-17 920 1,083 17.7% 901.65

Talwalkars Better Value Fitness 18-Sept-17 288 346 20.0% 285.05

Tata Communications 18-Sept-17 708 822 16.1% 729.4

GNA Axles 29-Sept-17 310 418 34.8% 349.25

Kajaria Ceramics Ltd. 06-Oct-17 732 900 22.9% 699.15

Nilkamal Ltd. 11-Oct-17 1,610 2,097 30.2% 1,608.80



October 25, 2017

Corporate Action Calendar — October 2017 (Cash Dividend)

Sun Mon Tue Wed Thu Fri Sat

22 23 24 25

Colgate-Palmolive India Ltd

Sasken Technologies Ltd

Cyient Ltd

Tata Consultancy Services

26

ICICI Lombard General Insurance Co Ltd

Meera Industries Ltd

Kewal Kiran Clothing Ltd

Dewan Housing Finance Corp Ltd

27 28

Economic Calendar — October 2017


22 23 24 25

Eight Infrastructure Industries

26 27 28

Corporate Action Calendar — October 2017 (Stock Split)


22 23

Blue Circle Services Ltd

24

Vishal Fabrics Ltd

25

Siyaram Silk Mills Ltd

26

Bampsl Securities Ltd

27 28

Corporate Action Calendar — October 2017 (Acquisition)

Date Target Company Acquirer Company

10/25/2017 Tasty Bite Eatables Ltd Mars Inc

10/26/2017 UV Boards Ltd Uniply Industries Ltd

10/27/2017 Choice International Ltd Multiple acquirers

10/27/2017 Himalchuli Food Products Ltd Private Investor



October 25, 2017

Result Calendar — October 2017


22 23

AUTOMOTIVE STAMPINGS & AS-SEMBLIES

ASHIKA CREDIT CAPI-TAL LTD.

BINNY LTD.

GEM SPINNERS INDIA LTD.

GRAPHITE INDIA LTD.

HAVELLS INDIA LTD.

HINDUSTAN EVEREST TOOLS LTD.

HINDUSTAN ZINC LTD.

Indiabulls Housing Finance Ltd

Integra Tele-communication & Soft-ware Ltd

JASCH INDUSTRIES

Kome-On Com-munication

MPS LTD.

NOCIL LTD.

ORIENTAL HOTELS

TINPLATE COMPANY OF INDIA LTD.

TECIL CHEMICALS & HY-DRO POWER LTD.

WENDT (INDIA) LTD.

ZUARI AGRO CHEMICALS LTD.

24

ABB India Limited

AMBUJA CEMENTS LTD.

ARTSON ENGINEERING LTD.

ASHIRWAD STEELS & INDUS-TRIES LTD.

ASIAN PAINTS LTD.

BENGAL & ASSAM COMPANY LTD.

CAN FIN HOMES LTD.

CHAMBAL FERTILISERS & CHEMI-CALS LTD.

GHCL LTD.

HBL POWER SYSTEMS LTD.-$

HDFC Bank Ltd

ICICI Prudential Life Insurance Company Ltd

INDIAN METALS & FERRO AL-LOYS LTD.

INFOSYS LTD.

International Paper APPM JK Agri Genetics Ltd

L&T FINANCE HOLDINGS LTD.

Mahindra CIE Automotive PHILLIPS CARBON BLACK LTD.

RADICO KHAITAN LTD.

RALLIS INDIA LTD.

RAYMOND LTD.

SAREGAMA INDIA LTD.

TTK PRESTIGE LTD.

25

AGRO TECH FOODS LTD.

CIGNITI TECHNOLOGIES

COROMANDEL IN-TERNATIONAL LTD.

EMAMI

ENGINEERS INDIA LTD.

EVEREST INDUSTRIES LTD.

EXIDE INDUSTRIES LTD.

HCL TECHNOLOGIES LTD.

HINDUSTAN BIO SCIENCES

HINDUSTAN UNILEVER LTD.

IDFC Bank Ltd

KOTAK MAHINDRA BANK

LLOYDS METALS AND ENER-GY LTD.

MAHINDRA & MAHINDRA FI-NANCIAL SERVICES LTD.

MINDTREE LTD.

NIIT LTD.

PI Industries Ltd

PNB Housing Finance Ltd

RBL Bank Ltd

SKF India Ltd

SUTLEJ TEXTILES & INDUS-TRIES LTD.

Syngene International Ltd

TATA COMMUNICATIONS

26

BANARAS BEADS LTD.

BIJLEE TEXTILES LTD.

BIOCON LTD.

COROMANDEL ENGI-NEERING

Crompton Greaves Consumer Electricals

CUMMINS INDIA LTD.

DHRUV ESTATES LTD.

EMAMI PAPER MILLS LTD.

Equitas Holdings Ltd

GeeCee Ventures GIC HOUSING FINANCE

GUJARAT INTRUX LTD.-

Indiabulls Ventures ION EXCHANGE (INDIA)

Jubilant FoodWorks Ltd

MASTEK LTD.

MPHASIS LTD.

NELCO LTD.

ROSEKAMAL TEXTILES

SAGAR CEMENTS LTD.-$

Sharda Cropchem Ltd

SHOPPERS STOP LTD.

SQS India BFSI Limited

TCI FINANCE LTD.

UNITED SPIRITS LTD.

27

Aditya Birla Fashion and Re-tail Ltd

CANARA BANK

DIC INDIA LTD.

ICICI BANK LTD.

IFB AGRO INDUSTRIES LTD.

INEOS Styrolution India Ltd

INDIAN OIL CORPORATION

ITC LTD.

KAVERI SEED COMPANY

Linde India Limited

MARUTI SUZUKI INDIA LTD.

MODERN SHARES & STOCK-BROKERS LTD.

MUNJAL SHOWA LTD.

Navin Fluorine International

PONNI SUGARS (ERODE)

PVR LTD.

Sellwin Traders Ltd

Shree Securities Ltd

SITA ENTERPRISES LTD.

SUN PHARMA ADVANCED RE-SEARCH COMPANY LTD.

Srikalahasthi Pipes Limited

SUNDARAM FINANCE LTD.

SUPER SALES INDIA LTD.-$

TATA METALIKS LTD.

28

Agri- Tech (India) Ltd

ARO GRANITE INDUSTRIES LTD.-$

Bhageria Industries Ltd

Bharat Financial Inclusion Ltd

JAYANT AGRO-ORGANICS LTD.

MAYUR FLOORINGS LTD.

Nath Bio-Genes (India) Ltd

RAMKRISHNA FORGINGS LTD.

SANGHI CORPORATE SERVICES LTD.

SESHASAYEE PAPER & BOARDS LTD.

SOLITAIRE MACHINE TOOLS LTD.

SOMA PAPERS & INDUSTRIES LTD.

TECHINDIA NIRMAN LIMITED

TRANSCORP INTERNATIONAL LTD.

UNITED DRILLING TOOLS LTD.



October 25, 2017

Current Portfolio and Performance Summary as on 24th October’17

Stock Sector Entry Date Weight Reco price (`) CMP (`)

Amara Raja Batteries Auto March 22, 2017 8.9% 868 700

RBL Bank Financial Services July 11, 2017 9.7% 532 536

Muthoot Finance Financial Services July 26, 2017 10.4% 482 499

Talwalkars Better value Fit- Health Fitness July 27, 2017 9.6% 302 285

Va Tech Wabag Infrastructure August 16, 2017 9.3% 636 597

Nilkamal Plastic Products August 17, 2017 9.5% 1,682 1,609

PPAP Automotive Auto Ancillaries September 14, 2017 9.8% 383 376

Can Fin Homes Financial Services September 19, 2017 11.1% 572 539

CARE Financial Services September 20, 2017 10.0% 1,493 1,378

Zee Entertainment En- Media & Ent. October 24, 2017 10.1% 525 526

Cash 1.6%

Total 100%



October 25, 2017

Historical Performance as on 24th October’17

Performance Matrix 3-Month 6-Month 1-Year Since Inception

Religare Alpha -2.0% -3.3% -0.3% 35.9%

Nifty 2.4% 9.2% 17.2% 29.5%

Outperformance -4.4% -12.5% -17.5% 6.5%



October 25, 2017

Research Product Basket

For cash market trading

Call / Product Call Frequency No. of calls Avg open call duration % funds allocated

Intraday Calls Intraday 2 - 3 < 1 day 25%

Live / RMD Calls Daily 3 - 4 3 - 4 days 30%

Master Pick Weekly 1 1 month 15%

Religare Alpha Opportunity based NA 2 - 3 months 20%

Cash NA 10%

For 1L margin*

Total Per Call

25,000 8,000

30,000 4,000

15,000 5,000

20,000 As per weightage

10,000

Intraday Calls These calls are flashed live on Ms Lync and ODIN with the purpose of squaring off positions on the same day. As a policy, we restrict our intraday

cash market calls to less than 4 calls a day. Hence, funds should be allocated accordingly to have provision to trade in all calls.

Live / RMD Calls 2 super ideas are flashed in RMD daily with a view of 3-4 days. Additionally as per market opportunity, we flash live calls during the day (including BTST calls). 3-

4 such calls are made on a daily basis which might be open for 3-4 days. Funds should be allocated keeping in mind that there will be 7-8 such open calls daily.

Master Pick This is our weekly recommendation shortlisted on the basis of techno-funda analysis. 15% of funds is recommended to be allocated for Master Pick considering

that there will be 3 open calls. The average open duration for this call will be 1 month.

Religare Alpha This is a portfolio of 8-10 stocks which are held with a view of 2-3 months. It is recommended to allocate 20% of funds for building this portfolio which will pro-

vide stability to the overall trading portfolio.

Cash 10% surplus cash in the portfolio should be kept for the purposes of allocating it to opportunities as and when they arrive.

For derivative market trading

Call / Product Call Frequency No. of calls Avg open call duration % funds allocated

Derivative Ideas Daily 1 - 2 1 - 3 days 40%

Live calls Intraday / Daily 1 - 2 3 - 4 days 50%

Cash NA 10%

For 1L margin*

Total Per Call

40,000 40,000

50,000 50,000

10,000

Derivative Ideas 1 derivative idea is shared in RMD daily. It can be a plain vanilla F&O buy/sell call or an option strategy. Funds should be allocated assuming 2 such calls will be

open at any time. These calls are open for 3-4 days on an average.

Live Calls These calls are flashed on MS Lync and ODIN during live market hours. These calls can be intraday or with a view of 2-3 days. Funds should be allocated

considering 2 such calls will be open at any time. 3/4 times, these calls will be on Nifty / Bank Nifty only.

Cash It is recommended to hold 10% cash to capitalize on any opportunity that may arise in markets.

For every client, the advisor must allocate a specific proportion of funds for trading and investing depending on the risk taking ability and willingness of the client and their invest-

ment goals.

The below mentioned product basket tries to address the way to deal with the trading portfolio (cash/derivative) for optimum effectiveness of research calls.

It is recommended to divide your trading funds for various types of calls and not invest the entire amount for 1 or 2 calls only.



October 25, 2017

Hitesh Agrawal [email protected]

Ajay Pasari, CFA [email protected]

Ajit Mishra [email protected]

Archana Gude [email protected]

Manoj M Vayalar [email protected]

Mehernosh Khurshed Panthaki [email protected]

Suhanee Shome [email protected]

Team Members



October 25, 2017

Before you use this research report , please ensure to go through the disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014 and

Research Disclaimer at the following link : http://old.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

Specific analyst(s) specific disclosure(s) inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014 is/are as under:

Statements on ownership and material conflicts of interest , compensation– Research Analyst (RA)

[Please note that only in case of multiple RAs, if in the event answers differ inter-se between the RAs, then RA specific answer with respect to questions under F (a) to F(j) below , are given sep-arately]

Nature of Interest ( if answer to F (a) above is Yes : ……………………………………………………………………………………………………………………

Name(s) with Signature(s) of RA(s).

[Please note that only in case of multiple RAs and if the answers differ inter-se between the RAs, then RA specific answer with respect to questions under F (a) to F(j) above , are given below]

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S. No. Statement Answer

Yes No

I/we or any of my/our relative has any financial interest in the subject company? [If answer is yes, nature of Interest is given below this table] No

I/we or any of my/our relatives, have actual/beneficial ownership of one per cent. or more securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance?

No

I/we or any of my/our relative, has any other material conflict of interest at the time of publication of the research report or at the time of public appearance?

No

I/we have received any compensation from the subject company in the past twelve months? No

I/we have managed or co-managed public offering of securities for the subject company in the past twelve months? No

I/we have received any compensation for brokerage services from the subject company in the past twelve months? No

I/we have received any compensation for products or services other than brokerage services from the subject company in the past twelve months? No

I/we have received any compensation or other benefits from the subject company or third party in connection with the research report? No

I/we have served as an officer, director or employee of the subject company? No

I/we have been engaged in market making activity for the subject company? No

SS..No. Name(s) of RA.

Signtures of RA

Serial Question of question which the signing RA needs to make a separate declaration / answer

Yes No.

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religare morning digest · srikalahasthi pipes ltd 18-aug-17 362 416 14.8% 365.5 ... oriental...

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