technical bullish candle with increase in volume

• Indian Equity Market ended sharply higher on Thursday tosnap a three-day losing streak, with IT and metal stocksleading the surge on hopes for economic and earningsgrowth. Global cues were upbeat as investors brushed offfears about the spread of Delta coronavirus variant andlooked ahead to the European Central Bank for reassurancethat policy support will continue for some time.

• On the sectoral front, all the sectoral indices ended in thegreen with Nifty Metal rising the most 3 percent followed byrealty, banks, IT, financial services and pharma indices. .

• On the technical front, Nifty formed Bullish Marabozu candleand has given a close above 21 and 50-DMA, which addsfurther strength to the counter . Structurally, present elevatedsupport for the market is seen around the strong higher baseat 15400-15500 zone as it is the confluence of 23.6%retracement (14151-15962) and the 50dma. Hence breach of15400 might drag Index further lower towards 15200 as ithappens to be the 38.2% retracement (14151-15901) followedby 100 days SMA.

• On the option front, maximum Put OI is at 15500 followed by15800 strike, while maximum Call OI is at 16000 followed by15800 strike. Call writing was seen at 16000 strike, followedby 16100 strike while Put writing was seen at 15800 strike,followed by 15700 strike.

ASHIKA GROUP

TECHNICAL BUILDUP

• Bullish candle with increase in volume

• Sell crossover in oscillators

• Lower band of Bollinger exist at 15623

• Crucial moving average of 20/50 SMA

are at 15785 and 15589

• 200 SMA trend deciding level exist at

14271

OUTLOOK OF THE DAY

1008, RAHEJA CENTRE, 214, NARIMAN POINT, MUMBAI-400 021, PH- 022 – 6611 1700, EXTN. - 704

WWW.ASHIKAGROUP.COM

WorldIndices

LTPDaily

Ch (Pts)Daily

Ch (%)

Dow Jones 34823 25 0.07

Nasdaq 14684 52 0.36

S&P 500 4367 8 0.20

FTSE 100 6968 -29 -0.43

DAX 15514 92 0.60

Hang Seng 27490 -128 -0.46

Nikkei 27548 159 0.58

Sensex 52837 638 1.22

Nifty 15824 191 1.23

Commodity/ Forex

LTPDaily

Ch (Pts)Daily

Ch (%)

Gold ($/Oz) 1810.40 0.80 0.04

Silver ($/Oz) 25.47 0.08 0.33

Brent Crude ($/bl) 73.73 -0.06 -0.08

Dollar Index 92.81 -0.03 -0.04

USD/INR 74.46 -0.15 -0.20

USD/YEN 110.16 0.02 0.02

EUR/USD 1.1780 0.0009 0.08

Support/Resistance levels for Indian Equity Indices

S2 S1 CMP R1 R2

Sensex 52345 52625 52837 53040 53255

Nifty 15675 15760 15824 15885 15950

Nifty (Fut) 15665 15750 15816 15875 15940

Pivot Level

Sensex 52725

Nifty 15795

India's wholesale price-based inflat ion is at a 30-year high, leading to a "very

alarming" situation for the country , former World Bank chief economist

Kaushik Basu said on Thursday . (BS)

The Union Cabinet on Thursday approved Rs 6,322 crore production-l inked

incentive (PLI) scheme for special ity steel in a move that is expected to

attract an addit ional investment of about Rs 40,000 crore and capacity

addit ion of 25 mill ion tonnes in the segment . (BS)

The Union Cabinet on Thursday approved a proposal to allow 100 per cent

foreign direct investment (FDI) in public sector ref iners , expanding the scope

for FDI in the privatisat ion of Bharat Petroleum Corporat ion Ltd (BPCL) . (BS)

The Reserve Bank is working on a phased implementation strategy for its

own digital currency and is in the process of launching it in wholesale and

retail segments in the near future, RBI Deputy Governor T Rabi Sankar said.

Sentiments in the real estate market turned pessimist ic during the April -

June quarter because of the outbreak of the second wave of COVID-19

pandemic but the future outlook for the next six months remains optimist ic ,

according to a survey by Knight Frank, FICCI and Naredco. (BS)

The leasing of f lexible or co-working spaces by companies has seen a spurt in

the first hal f of the year as companies took off ices closer to their employees’

homes during the second wave of the pandemic . The surge was as much as

73 per cent , with 31 ,538 seats taken on lease during the first hal f of 2021 on a

yearly basis , property consultant Cushman & Wakefield said. (BS)

India’s renewable energy journey has taken a sharp turn in the last one year

with the country ’s largest companies entering the sector and overshadowing

the plans of pure-play green power generators and gear makers . (BS)

The Centre is working towards building a robust data bank for small

businesses by integrating information across various ministr ies and

government data . The micro, small and medium enterprises (MSMEs) ministry

is in talks with other government departments, so that more businesses are

registered as MSMEs. (BS)

ASHIKA GROUP

ECONOMY

NEWS


WWW.ASHIKAGROUP.COM

Zomato wil l l ist its shares on exchanges today after its IPO received a robust

38.25 times subscription. The list ing of the IPO was advanced to Friday.

Reliance Industr ies numbers are expected to be flat on a quarter-on-quarter

(QoQ) basis . The retail business has been under pressure because of the

impact of second COVID-19 wave and that wil l be of fset by a marginal

increase in the oi l-to-chemical (O2C) business . On a consolidated basis ,

street is expecting revenue growth of 3 .3 percent to come in at Rs 1 .54 lakh

crore. The EBITDA is expected to be flat at Rs 23,300 crore, margins are

expected to be at 15 .1 percent and the profits are expected to fall by nearly

18 percent .

Bhart i Airtel has raised entry- level corporate postpaid plans to Rs 299 per

month and loaded them with extra data, according to a statement issued.

Airtel has revised its postpaid plan portfol io for both retail and corporate

customers .

Mahindra Lifespace Developers board to consider the proposal for issuance

of bonus equity shares on July 28, subject to requisite approvals .

Tanla Platforms approved the proposal to buyback up to 5,15,873 shares of

the company for an aggregate amount of Rs 65 crore at a price not

exceeding Rs 1 ,260 per share.

Wipro launched FieldX, a cloud-based end-to-end digital service lifecycle

automation solution built on ServiceNow’s Now Platform.

Tata Consumer Products has commissioned a new plant in Gopalpur in the

Odisha's Ganjam distr ict . The plant was commissioned in a span of 18

months with an investment of Rs 100 crore.

Hero MotoCorp launched an advanced, ‘connected’ , and feature-r ich new

Maestro Edge 125.

BSE announced the launch of trading in delivery-based futures contract in

steel bil lets , which will provide a risk hedging instrument to stakeholders .

ASHIKA GROUP

CORPORATE

NEWS


WWW.ASHIKAGROUP.COM

Hindustan Unilever Ltd. : Net Revenue at Rs . 12194 .0 crore, +13 .6% YoY and -

1 .9% QoQ. EBITDA at Rs . 2921 .0 crore, +8 .4% YoY and -4% QoQ. EBITDA Margin

at 24%, -116 bps YoY and -52 bps QoQ. Net Profit at Rs . 2100.0 crore, +10 .7%

YoY and -4.2% QoQ.

Ultratech Cement Ltd . : Net Revenue at Rs . 11829 .8 crore, +54 .2% YoY and -

17 .9% QoQ. EBITDA at Rs . 3307 .5 crore, +59 .2% YoY and -10 .4% QoQ. EBITDA

Margin at 28%, +87 bps YoY and +234 bps QoQ. Net Profit at Rs . 1700.0 crore,

+114.4% YoY and -4.2% QoQ. Ashika

Hindustan Zinc Ltd . : Net Revenue at Rs . 6531 .0 crore, +63 .7% YoY and -6%

QoQ. EBITDA at Rs. 3558 .0 crore, +125 .8% YoY and -8.2% QoQ. EBITDA Margin

at 54 .5%, +1497 bps YoY and -130 bps QoQ. Net Profit at Rs . 1983 .0 crore,

+45.9% YoY and -20.1% QoQ.

Bajaj Auto Ltd . : Net Revenue at Rs . 7386 .0 crore, +139 .9% YoY and -14. 1% QoQ.

EBITDA at Rs . 11 18 .0 crore, +173 .7% YoY and -26.5% QoQ. EBITDA Margin at

15 .1%, +187 bps YoY and -257 bps QoQ. Net Profit at Rs . 1 170 .2 crore, +195 .9%

YoY and -24.6% QoQ.

ICICI Lombard General Insurance Company Ltd . : Net Revenue at Rs . 3246.9

crore, +18 .9% YoY and -6.9% QoQ. Net Profit at Rs . 151 .6 crore, -61 .9% YoY and

-56.1% QoQ.

Bajaj Holdings & Investment Ltd. : Net Revenue at Rs . 97 .7 crore, +8 .2% YoY

and +5.6% QoQ. EBITDA at Rs . 69 .2 crore, +2 .3% YoY and +19 .1% QoQ. EBITDA

Margin at 70.8%, -409 bps YoY and +802 bps QoQ. Net Profit at Rs . 779 .6

crore, +14.7% YoY and -18% QoQ.

Persistent Systems Ltd. : Net Revenue at Rs . 1229.9 crore, +24 .1% YoY and

+10 .5% QoQ. EBITDA at Rs . 201 .5 crore, +38.2% YoY and +7% QoQ. EBITDA

Margin at 16 .4%, +168 bps YoY and -53 bps QoQ. Net Profit at Rs . 151 .3 crore,

+68% YoY and +9.8% QoQ.

Indiamart Intermesh Ltd. : Net Revenue at Rs . 181 .6 crore, +18 .6% YoY and

+1 . 1% QoQ. EBITDA at Rs . 88 .6 crore, +20.9% YoY and +3.7% QoQ. EBITDA

Margin at 48 .8%, +91 bps YoY and +126 bps QoQ. Net Profit at Rs . 87 .9 crore,

+18.6% YoY and +57.8% QoQ.

ASHIKA GROUP


WWW.ASHIKAGROUP.COM

Q1FY22 RESULT

HIGHLIGHTS

ASHIKA GROUP


WWW.ASHIKAGROUP.COM

• *Vishal Fabrics Limited : Cresta Fund Ltd Buy 529708 Shares @ Rs.100

• *Unitech Ltd : Il And Fs Financial Services Ltd Sell 19637873 Shares @Rs. 1.92

• *Indo-National Limited : Hdfc Bank Limited Sell 20673 Shares @ Rs.1036.08

• *Ani Integrated Serv Ltd. : Maven India Fund Sell 102000 Shares @Rs. 51

BULK DEAL

INSIDER TRADE

REVOKE

*Parappil Rajendran Director Acquisition 333400 shares of

Niit Ltd. on 19-Jul-21

*Adani Tradeline LLP earlier known as Parsa Kente Rail

Infra LLP Promoter Group Pledge 45500 shares of Adani

Transmission Ltd on 20-Jul-21

*Max Ventures Investment Holdings Private Limited

Promoter Revoke 7000 shares of Max Financial Services

Ltd on 20-Jul-21

*PCR INVESTMENTS LIMITED Promoter Revoke 400000

shares of Apollo Hospitals Enterprise Ltd. on 20-Jul-21

*Adani Tradeline LLP earlier known as Parsa Kente Rail

Infra LLP Promoter Group Revoke 900000 shares of Adani

Transmission Ltd on 20-Jul-21

PLEDGE

ACQUISITION

ASHIKA GROUP


WWW.ASHIKAGROUP.COM

NIFTY

FII/FPI & DII TRADING ACTIVITY22/07/2021 20/07/2021 19/07/2021 16/07/2021 15/07/2021 14/07/2021

FII -247.59 -2834.96 -2198.71 -466.3 -264.77 -1303.95

DII 942.55 873.14 1047.66 666.07 439.41 1335.91

JSL 145.4 18.8% VENKEYS 3104.2 -7.5%

JSLHISAR 265.7 15.2% BSE 1245.5 -6.6%

JUBLFOOD 3430.0 11.9% CDSL 1426.7 -5.0%

IDFC 59.0 11.7% CSBBANK 322.9 -4.2%

VAKRANGEE 38.3 8.3% POLYCAB 1912.0 -4.0%

JINDALSAW 129.8 8.0% SYNGENE 627.7 -3.6%

VTL 1772.5 7.9% MASFIN 836.1 -3.1%

TATACOFFEE 199.0 7.9% SHILPAMED 642.5 -2.9%

JSWENERGY 217.3 7.8% PIIND 3002.0 -2.8%

MAXHEALTH 279.5 7.7% AAVAS 2728.9 -2.7%

ASHIKA GROUP


WWW.ASHIKAGROUP.COM

DERIVATIVE

REPORT

• Nifty gained by 1.23% with Nifty futureshaded 8.17 lakh shares in open interest andstock future added 1058.9 Lakh shares inopen interest .

• Nifty PCR increased to 1 . 10 from 0.81

• Total Nifty Calls shaded 184.6 lakh shares inopen interest .

• Total Nifty Puts added 88.0 lakh shares inopen interest .

• Maximum open interest (Nifty) in Calls forApr series is at 16000 and 15000 put.

• FII ’s sold net Rs. 247.59 Cr(provisional) , whileDIIs bought net Rs. 942.55 Cr in cash market.

• FII sold net Rs. 1407.03 Cr in F&O

• Securities in Ban Period:• -CADILAHC, CANBK, IBULHSGFIN,

NATIONALUM, SUNTV

NIFTY TRACKER

TRADE STATISTICS FOR 22.07.2021

Particulars 22/07/2021 20/07/2021 19/07/2021 16/07/2021

Spot 15824.05 15632.1 15752.4 15923.4

% Change in Spot 1.23% -0.76% -1.07% -0.01%

Nifty(FUT) July 15816.9 15637.2 15752.4 15936

Nifty(FUT) July Vol. 148876 178075 167042 80224

Nifty(FUT) July - OI 8370300 9452750 9082150 9457250

Nifty(FUT) Aug 15859.7 15686.25 15804.05 15978.05

Nifty(FUT) Aug Vol. 16525 20230 14779 6374

Nifty(FUT) Aug - OI 1400200 1136700 996400 878450

Particulars No. of Contracts Turnover (Rs. Cr.) Put Call Ratio

NSE Index Futures 334947 27807 -

NSE Stock Futures 969348 79578 -

NSE Index Options 103438366 9739837 -

NSE Stock Options 3364002 282518 0.37

NSE F&O Total Turnover 108106663 10,129,740 0.86

NSE Cash Turnover - 66,039.06

BSE Cash Turnover - 4,996.16

Total Turnover - 10200775 -

MARKET OPEN INTEREST

FII CORNER (F&O)

ASHIKA GROUP


WWW.ASHIKAGROUP.COM

FII NET BUYING/SELLING & CHANGE IN OPEN INTEREST (Cr. Rupee)

Particulars

22/07/2021 20/07/2021 19/07/2021

Net Buying/Selling

Change InOpen interest

Net Buying/Selling


Net Buying/Selling


Index Future 1152 -510 -1785 818 -2069 -1160

Index option -4439 -46659 6924 12829 -2676 12803

Stock Future 1497 2516 -365 -890 -808 -1628

Stock option 383 126 -320 -804 -376 945

Total -1407 -44527 4454 11952 -5929 10959

Index Futures -1866 1497 -251 -82 1099

Index Options 4047 -2615 -968 1828 1958

Stock Futures -2450 29827 76849 -121526 30295

Stock Options -891 303 3072 1742 2329

F&O Total -1160 29012 78701.38 -118038.69 35680.5

JUBLFOOD 1,439,000 1,794,500 3,411.05 10.91% 24.70%

APOLLOHOSP 1,959,250 2,377,000 4,004.95 2.89% 21.32%

MPHASIS 766,675 927,550 2,395.10 0.76% 20.98%

ICICIPRULI 5,995,500 7,158,000 640.15 5.50% 19.39%

ADANIPORTS 48,888,750 55,980,000 694 3.06% 14.50%

Increase in OI with Decrease in Price (Short Buildup)

Symbol Prev OI Curr OI CMP Pr.Chg (%) OI Chg (%)

HINDUNILVR 6,153,300 6,944,400 2,382.50 -2.22% 12.86%

LALPATHLAB 407,000 453,000 3,345 -1.09% 11.30%

BERGEPAINT 3,294,500 3,570,600 855.05 -1.30% 8.38%

BAJAJ-AUTO 2,022,250 2,158,000 3,855.95 -1.49% 6.71%

CIPLA 8,398,000 8,709,350 952.5 -0.49% 3.71%

HIGHEST REDUCTIONS

NIFTY OPTION OPEN INTEREST STATISTICS

HIGHEST ADDITIONS

ASHIKA GROUP


WWW.ASHIKAGROUP.COM

Expiry Strike Option Type Settlement Price Volume Open Interest Change In OI

22-Jul-21 15800 PE 15824.05 3432518 4048050 2400450

22-Jul-21 15750 PE 15824.05 2370082 2490450 1938150

29-Jul-21 16000 CE 21.9 271896 4360300 1344100

29-Jul-21 15800 PE 78.6 336290 2555250 1244300

29-Jul-21 15700 PE 44.45 293865 2440250 1121750

29-Jul-21 16100 CE 8.5 153837 2161550 1006550

29-Jul-21 16500 CE 2.25 59770 2678400 897900

22-Jul-21 15700 PE 15824.05 1640693 2472825 897525

29-Jul-21 15900 CE 49.95 256885 2673450 894900

29-Jul-21 15000 PE 3.75 129689 4311350 853850

Expiry Strike Option Type Settlement Price Volume Open Interest Change In OI

22-Jul-21 15700 CE 15824.05 805241 671700 -4755975

22-Jul-21 15800 CE 15824.05 4588862 2460150 -3396975

22-Jul-21 15750 CE 15824.05 1316382 479925 -2383425

22-Jul-21 16500 CE 15824.05 148917 1869525 -1916700

22-Jul-21 16200 CE 15824.05 158762 2224500 -1886025

22-Jul-21 15900 CE 15824.05 1174126 2752425 -1733250

22-Jul-21 16300 CE 15824.05 121070 1575600 -1659450

22-Jul-21 15650 CE 15824.05 172862 371850 -1635150

22-Jul-21 15600 CE 15824.05 118002 267375 -1478475

22-Jul-21 15600 PE 15824.05 603753 1728750 -1335525

108

50 4228

50

126

50

5920

0

5830

0

1314

00 53

240

0

626

350 12

728

50

326

80

00

2673

450 43

60

300

216

1550

2047

250 18

974

50

130

3350

2678

400

7250

00

3076

50

1034

750

831

90

0

4311

350

66

700

0

166

00

50

169

390

0

218

4750

3378

90

0

1775

650

2440

250 25

5525

0

818

400

69

3550

159

300

4715

00

128

150

1030

0

3038

50

845

0

7250

410

0

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

4500000

5000000

14900

15000

15100

15200

15300

15400

15500

15600

15700

15800

15900

16000

16100

16200

16300

16400

16500

16600

16700

16800

Call -Put Options Open Interests Distributions for July'21 Contract

Call

Put

HIGHEST REDUCTIONS

STOCK OPTION OPEN INTEREST STATISTICS

HIGHEST ADDITIONS

ASHIKA GROUP


WWW.ASHIKAGROUP.COM

IDEA 29-Jul-21 10 CE 0.3 5143 129080000 19530000

IDEA 26-Aug-21 9 CE 1.25 478 30100000 18480000

IDEA 26-Aug-21 9 PE 0.85 278 20720000 10570000

IDEA 26-Aug-21 10 CE 0.85 487 20440000 10150000

IDEA 26-Aug-21 8 PE 0.4 345 14420000 7700000

IDEA 29-Jul-21 11 CE 0.15 1846 78120000 5880000

IDEA 26-Aug-21 11 CE 0.55 357 11480000 5390000

IDEA 29-Jul-21 9 PE 0.35 875 51730000 4900000

FEDERALBNK 29-Jul-21 90 CE 0.7 2708 16480000 4820000

IDEA 26-Aug-21 12 CE 0.4 248 6510000 3150000

IDEA 29-Jul-21 12 CE 0.1 416 59990000 -9170000

TATAPOWER 29-Jul-21 130 CE 1.35 4040 27567000 -4779000

IDEA 29-Jul-21 13 CE 0.05 204 28210000 -4060000

BHARTIARTL 29-Jul-21 540 CE 11.6 19413 6459990 -2332260

IDEA 29-Jul-21 9 CE 0.6 2234 32270000 -2170000

ONGC 29-Jul-21 115 CE 1.9 1929 3287900 -1986600

TATAPOWER 29-Jul-21 125 CE 2.6 2829 17124750 -1977750

BANKBARODA 29-Jul-21 85 CE 0.6 2288 18310500 -1965600

TATAMOTORS 29-Jul-21 320 CE 2.1 4587 11910150 -1729950

BANKBARODA 29-Jul-21 90 CE 0.25 951 19843200 -1497600

➢ BFL bounce rates was signif icantly lower

➢ BAGIC reported underwrit ing profit , growth in major segments

➢ BAGIC growth of 9.1% was lower than industry growth of 11 .1%

➢ Growth was driven by private cars, 2W, commercial l ines, property ,engineering . Motor 2W and 4W grew 23% while CV continue to be stressedon growth Commercial l ines greater than industry

➢ 2-year CAGR for commercial l ines was 26.9%

➢ BAGIC deep and corporate tie ups and agency force helped

➢ Covid claims was higher as lower age group was hit , group and life bothhad higher claims

➢ 27,000 claims reported in Q1FY22 against 32 ,000 in total FY21 , covid claimscost Rs 283 cr vs Rs 14 cr in

➢ Motor OD claims frequency was much higher since it was not localizedlockdown, but below pre-covid claims

➢ Claim ratio to 75.9% in Q1FY22 vs 68.1% in Q1FY21

➢ Combined ratio at 103.4%

➢ Life insurance: Lower base and strong growth, industry posted stronggrowth in April but there was slowdown in may and earl ier part of June

➢ Q1 BALIC individual rated new business growth 49%, market shareincreased from 5.7% to 6.7%

➢ 2 yr indidualal rated new business CAGR at 22% vs -1% of private players

➢ Annuity products launched in Q4FY21 very well received, ~12% of individualrated NB was from annuity segment

➢ Product mix was better

➢ ULIP contr ibution at 39%, non-par witnessed de-growth

➢ Par growth picked up 165%, 2year CAGR 25% p.a

➢ Renewal growth of 27%

➢ GWP by 48% to Rs 2516 cr

➢ Rs 304 cr net reserves in hand

➢ 13-mont persistency has improved yoy

ASHIKA GROUP

CONCALL

HIGHLIGHTS


WWW.ASHIKAGROUP.COM

Bajaj Finserv Ltd.

➢ Both insurance businesses are well solvent to tide over external cr isis

➢ Mutual fund l icense applied and inspections are ongoing and wouldreceive in due time

➢ Bajaj F inserv Direct , on the platform side has been direct l inkages betweenFinserv and Bajaj Finance . BFL is just one more partner for Direct and asmore partners are added, the pie wil l come down. However , the linkage isposit ive for incremental growth. Stake will come down to 19 .9% for Baja jFinance, just a strategic investment by BFL.

➢ Rs 288 cr net impact on PAT will also impact on EV, Rs 304 is the reserve,Rs 206 cr of addit ional covid reserve in Q1 based on current wave of covidand using analyt ical models . Since lot of claims comes with a delay,however not much factored for 3rd wave though

➢ Rs 96 cr actual claims and

➢ Bancassurance channel : Axis Bank 18% of off l ine, few partnerships in lastfew years, small f inance banks, IDFC, RBL, Karur Vyasa bank . Emergingbancassurance contr ibution at 10%. Want to diversify the space

➢ In BALIC co. is spending on marketing and building base in annuity sideand has been paying off . Has a good ROI on that business

➢ In general insurance there is more cla ims and there is an obsession forBAGIC is to be the best claim settler and hence there is no risk for policyaggregators

➢ Insurance brand building is on trust and should be true to thecommitments are the ingredients . Besides, there is backing from Bajajbrand

➢ Company has been building on digital brand building as against TVCswhich have short recall

➢ VNB Margin directionally would increase but part is volat i le on the non-parsegment and hence margins wil l f luctuate give the product mix butgrowth would ensure that f ixed costs are absorbed.

➢ Competit ion will be more in the motor segment since it is easy to get intofor new players . As number of players moves us, the market for motors wil lget distr ibuted . In BAGIC the co. is a strong player and have gained marketshare over the years . Has strong market share in CV space, although thatspace has been slow in last few years

ASHIKA GROUP


WWW.ASHIKAGROUP.COM

CONCALL

HIGHLIGHTS

Bajaj Finserv Ltd.

➢ 1QFY22 earnings has been encouraging despite of COVID challenges . Theperformance was much encouraging compared to corresponding quarterof pervious year .

➢ Despite of challenges company has reported decent performance.

➢ Supply chain has remained largely unaffected during the quarter .

➢ Company has done High single to double digit price hike to mitigate thecost inf lat ion.

➢ Finance cost was down by 25% on YoY basis .

➢ In June company witnessed sharp correction in copper prices.

➢ Export business grew by 12% mainly driven by Asia, Austral ia , UK andAfrica. Logist ical challenges continued.

➢ Fans largest revenue contr ibution in FMEG segment grew at healthy rate.

➢ Company acquired a Bangalore based automation company, Si lvanInnovation Labs.

➢ Silvan claims to be one of the pioneers in the concept of home automationin the Indian residential bui lding market with a proven track record withmany prominent real estate developers . Si lvan has installed over 100,000devices in more than 8,000 homes and off ices and has 17 patents,including fi led and provisional .

➢ Company is very optimist ic on report ing healthy growth in topl ine andbottomline in coming quarters mainly in 2HFY22.

➢ In cables and wires business company revised price on monthly basis . Onblended basis raw material prices increased by high teens and price hikecompany has taken double digit .

➢ In 2HFY22 the margins wil l improve much better than 1HFY22.

➢ Indian FMEG market is Rs 60,000 crore and company is relat ively smallplayer in the industry . In B2C business company is optimist ic on growthand thus augmenting the distr ibutors for achieving higher growth.

➢ In wires and cables business the inst itutional demand is lower during thequarter due to weak construction activit ies .

➢ On supply side company is increasing the dealers and distr ibutors and alsofocusing on smaller towns . Company’s init iat ives to increase thepenetration will help to achieve growth in cable and wire segment .

ASHIKA GROUP


WWW.ASHIKAGROUP.COM

CONCALL

HIGHLIGHTS

Polycab India Ltd.

➢ On 5 year basis , company is expecting to report topline of about Rs 20,000cr and will grow at 1 .5x above industry growth.

➢ Company expects to clock high single digit EBIT margins in next 2 years inFMEG business .

➢ Company is taking calibrating approach in hiking the price.

➢ Company is probably the largest consumer of copper in India thus has theabil ity to negotiate the price at much comfortable level .

➢ Softening of copper price has adversely affected the inventory .

➢ In telecom, company already has optical f iber manufacturing capacity inGujarat and Bihar .

➢ Company has around 4000 odd dealers on pan India basis and 5000-6000retailers across the country .

➢ Around 85% is distr ibution business and 15% is inst itutional business .

➢ Company has taken 3 init iat ives, f irst one is to optimize the cost , secondone is mult iyear transformation and to achieve Rs 20,000 cr at end of FY26and third one is to increase the penetration in newer geographies in orderto increase the wallet share.

➢ Company is expecting EBTIDA margin around 11-13% in FY22.

➢ There has been some uptick in order level on inst itutional segment but itdoesn’t reach the pre covid level and it wil l take time to reach the precovid level .

➢ Company remains confident on its strategy and approach and achieving Rs20,000 cr topline in next 5 years .

➢ Home automation products help the company in improving the FMEGbusiness growth. Indian IoT market is est imated at Rs 26,000 cr andgrowing at 30% CAGR and company is expecting the growth to acceleratemore from here on.

➢ EPC is not a core business for the company it is extension of cable & wirebusiness and company is not so much focused on this business .

➢ There is no mark to market loss in 1QFY22 due to hedging account .

➢ Company is confident of achieving high single digit EBTIDA margin in next2 years .

ASHIKA GROUP


WWW.ASHIKAGROUP.COM

CONCALL

HIGHLIGHTS

Polycab India Ltd.

Ashika Stock Broking Limited (“ASBL”) started its journey in the year 1994, and is presently offering a wide

bouquet of services to its valued clients including broking services, depository services and distributorship of

financial products (Mutual funds, IPO & Bonds). It became a “Research Entity” under SEBI (Research Analyst)

Regulations 2014 in the year of 2015 (Reg No. INH000000206).

ASBL is a wholly owned subsidiary of Ashika Global Securities (P) Ltd., a RBI registered non-deposit taking

NBFC Company. ASHIKA GROUP (details enumerated on our website www.ashikagroup.com) is an integrated

financial service provider inter alia engaged in the business of Investment Banking, Corporate Lending,

Commodity Broking, Debt Syndication & Other Advisory Services.

There were no significant and material disciplinary actions against ASBL taken by any regulatory authority

during last three years except routine matters.

ASHIKA GROUP


WWW.ASHIKAGROUP.COM

The research recommendations and information are solely for the personal information of the authorized recipient and does not construe

to be an offer document or any investment, legal or taxation advice or solicitation of any action based upon it. This report is not for public

distribution or use by any person or entity, where such distribution, publication, availability or use would be contrary to law, regulation or

subject to any registration or licensing requirement. We will not treat recipients as customer by virtue of their receiving this report. The

report is based upon the information obtained from public sources that we consider reliable, but we do not guarantee its accuracy or

completeness. ASBL shall not be in anyways responsible for any loss or damage that may arise to any such person from any inadvertent

error in the information contained in this report. The recipients of this report should rely on their own investigations.

Research reports are being prepared and distributed by ASBL in the sole capacity of being a Research Analyst under SEBI (Research

Analyst) Regulations 2014. The following disclosures and disclaimer are an essential part of any Research Report so being distributed.

•ASBL or its associates, its Research Analysts (including their relatives) may have financial interest in the subject company(ies). And, the

said financial interest is not limited to having an open stock market position in /acting as advisor to /having a loan transaction with the

subject company(ies) apart from registration as clients.

•ASBL or its Research Analysts (including their relatives) do not have any actual / beneficial ownership of 1% or more of securities of the

subject company(ies) at the end of the month immediately preceding the date of publication of the source research report or date of the

concerned public appearance. However, ASBL's associates may have actual / beneficial ownership of 1% or more of securities of the

subject company(ies).

•ASBL or its Research Analysts (including their relatives) do not have any other material conflict of interest at the time of publication of the

source research report or date of the concerned public appearance. However, ASBL's associates might have an actual / potential conflict of

interest (other than ownership).

•ASBL or its associates may have received compensation for investment banking, merchant banking, brokerage services and for other

products and services from the subject companies during the preceding 12 months. However, ASBL or its associates or its Research

analysts (forming part of Research Desk) have not received any compensation or other benefits from the subject companies or third

parties in connection with the research report/ research recommendation. Moreover, Research Analysts have not received any

compensation from the companies mentioned in the research report/ recommendation in the past twelve months.

•The subject companies in the research report/ recommendation may be a client of or may have been a client of ASBL during the twelve

months preceding the date of concerned public appearance for investment banking/ merchant banking / brokerage services.

•ASBL or their Research Analysts have not managed or co–managed public offering of securities for the subject company(ies) in the past

twelve months. However, ASBL's associates may have managed or co–managed public offering of securities for the subject company(ies)

in the past twelve months.

•Research Analysts have not served as an officer, director or employee of the companies mentioned in the report/ recommendation.

•Neither ASBL nor its Research Analysts have been engaged in market making activity for the companies mentioned in the report /

recommendation.

DISCLOSURE

DISCLAIMER

technical bullish candle with increase in volume

Documents