Monday, 26 March 2018

Sebi plans to come out with new buyback rules | Ideal Stock

Sebi plans to come out | Ideal Stock 

New Delhi: Markets regulator Sebi is considering to come out with new norms on share buyback programme, under which maximum limit for share repurchase will be 25 per cent of the company's paid up capital and other reserves.

The company may buyback its shares and other securities from the existing security holders on a proportionate basis through the tender offer; open market via -- book building process and stock exchange--; and odd-lot holders, senior officials said. 
This will be applicable provided that no offer of buyback for 15 per cent of the paid up capital and free reserves of the company will be made from the open markets. 
The proposal will be discussed at the board meeting of Securities and Exchange Board of India (Sebi) this week, they added. 
The regulator plans to come out with a consultation paper on the share and other securities buyback programme and seek public comments on the same. The final regulations will be put in place after taking views of all the stakeholders. 
Under the proposal, the maximum limit of any buyback would be 25 per cent or less of the aggregate of paid up capital and free reserves of the company 
Besides, the ratio of the aggregate secured and unsecured debts owed by the company after buyback may not be more than twice the paid-up capital and free reserves. 
According to the proposal, the company would not buyback its shares to delist its scrips, besides, the firm would not repurchase its scrips through negotiated deals, whether on or off the stock exchange through spot transactions or through any private arrangement. 
"A company shall not make any offer of buyback within a period of one year reckoned from the date of closure of the preceding offer of buyback," as per the proposal. 
The company may not be allowed to purchase its own shares through any subsidiary company and any investment company. 
Further, the firm would not directly or indirectly purchase its own shares if a default is made by it. However, such buyback would not be prohibited if the default is remedied and period of three years has lapsed after such default ceased to subsist. 
If a company completes buyback of its shares, it will not make a further issue of the same kind of scrips including allotment of new shares within six months months except by way of bonus issue or in the discharge of subsisting obligations such as warrants, stock option schemes and conversion of preference shares or debentures into equity shares. 
The companies will have to complete their buyback offers within a period of one year of passing a special resolution by the general meeting or the special resolution passed by the board of directors. 
Besides, Sebi is looking to amend takeover regulation with regard to upward revision of the open offer price.

Wednesday, 21 March 2018

Top 20 multibaggers of 2017 which gave up to 1000% return:

Are they still a buy | Ideal Stock :-
To all those who thought that making money in equity markets was tough – the year 2017 proved them all wrong. There were more than 350 stocks on the BSE which more than doubled investors’ wealth in the same period maximum being from the small & midcap theme.

The Indian market was driven more by sentiments in the year 2017 rather than fundamentals but for the year 2018, it is exactly opposite. A large part of the rally was seen in the broader market which saw many small & midcaps more than doubling investors’ wealth in the previous calendar year.
However, there are many stocks which saw wealth erosion in the year 2018 up to 50 percent. Stocks which came under pressure after a sharp rally in the year 2017 include names like California Software which rose over 1000 percent, followed by Sanwaria Consumer which gained 958 percent, and Weizmann Forex which was up 732 percent.
Other stocks which more than doubled investors’ wealth in the same period include names like ITL Industries, Bharat Seats, Gopala Polyplast, C&C Construction, Paramount Communications, Shalimar Wires, Frontier Springs etc. among others.
“2017 saw a year of stock market frenzy, especially in small and midcap stocks. One thing to watch is that most of these stocks are highly illiquid. Some stocks the volume is few hundreds. So in a bull run, all these stocks saw buying amid extremely low volumes,” Pankaj Karde, Head- Institutional Sales of Systematix Shares told Moneycontrol.
“They were beneficiaries of low liquidity. Now that the markets are in a correction mode, it is justified that these stocks correct the maximum. I believe if you have more than doubled your money, you should exit and start investing in more liquid better names,” he said.
The large part of the rally was led by domestic institutional investors (DIIs) as money from retail investors flowed into mutual funds got directed in the small & midcap space which gathering most attention.
However, most experts now think that if you have made money in the year 2017 in the small & midcap names then the time has come to either book profits and invest in more liquid quality mid or largecap names. But, if you have a longer holding period horizon then these stocks could do well.
Large cap or just quality stocks have also seen a 10% correction, and in a falling market, illiquid stocks will be a death trap, suggest experts.
“Unlike 2017, 2018 will be a year of high volatility & uncertainly as we are getting closer to an election cycle. Global economic growth is strong but that is coming back with higher inflation, as a result of which bond yields went higher and that led to global sell-off in equities,” Soumen Chatterjee, Head of Research, Guiness securities told Moneycontrol.
“Back home, higher inflation remains a risk due to rising crude oil prices with added uncertainty around monsoon this year and elections. Therefore, it is advised to keep moderate return expectations this year and book partial profit in space where stocks has given stellar returns in past few years with stretched valuations and shift to more quality names where earnings visibility is high with a reasonable valuation,” he said.
Corrections in the price in the recent times have been sharper or close to 20-25%, this has created a buying opportunity in quality management and business.
However, every falling knife is not bound to cut your hands. In the recent times the correction was due to global sentiments and overvaluations in some of the stocks.
“Frankly, I would take this correction very positively. Fundamentally overvalued stocks will see selling. On the other hand, strong names would create buying opportunities. On an overall scenario, I would like to agree that mid and small cap space is unlikely to outperform in the year 2018,” said Karde of Systematix Shares.
“But, I will also say that we buy smaller names with a 2-3 year horizon. So, if the long term story remains intact, I will hold on to the stocks. Market timing in smaller stocks is very difficult and hence it is best to stay invested if the fundamentals haven’t changed,” he said.
Top stocks to buy in the small & midcap space which saw a big correction:
Analyst: Ritesh Ashar, Chief Strategy Officer, at KIFS Trade Capital
Sanwaria Consumer:
The company has posted excellent results in Q3 and company is looking at top line growth of 25% with the planning of new stores in MP. Promoters is confident about the growth story and have increased the stake in last quarter.
WeizmannForex Ltd:
The company is trading at a higher PE ratio of 52.98x, making it more expensive than the average consumer finance stock. In terms of returns, Weizmann Forex generated 19.32% in the past year, which is 11.91% over the consumer finance sector.
Weizmann forex to acquire payment and solution startup JaldiCash. At the CMP stock is overvalued but can be accumulated at lower levels. Investors can stay invested in the stock.
Analyst: Soumen Chatterjee, Head of Research, Guiness securities
Bharat Seats:
We continue to hold the stock on superior return on equity around 33 percent. The stock is reasonably priced at 22-23 times of its trailing earnings.
Strong Parentage: Bharat Seats Ltd is a joint Venture of Suzuki Motor Corporation, Japan, Maruti Suzuki India Ltd and the Relans for the manufacture of complete seating systems and interior components for the automotive and surface transport.

Tuesday, 20 March 2018

What changed for the market while you were sleeping | Ideal Stock

15 things you should know |  Ideal Stock :-

Bears ruled the D-Street for the third consecutive day in a row and pushed the Nifty below its crucial long-term moving an average of 200-DEMA for the first time on Monday for the first time since November 2016. The Nifty has also registered its fresh low for the year 2018 as it made a strong bear candle.
The Nifty which opened with a positive bias failed to hold on to the momentum as bears took control of D-Street as it reclaimed 10,200 levels. The index slipped below its crucial 200-DEMA placed around 10,114 and now a closed below 10,000 could take Nifty towards 9700.
Traders should not hurry in creating long at the current juncture as long as Nifty trades below its 200-DEMA. A close above 10,200 could signal some short-term strength in the index.
The Nifty which opened at 10,215 rose to an intraday high of 10,224 before bears took control of D-Street. The index hit an intraday low of 10,075 before closing the day at 10,094, down 100.90 points or 0.99 percent.
The Nifty closed at 10,094.2 on Monday. According to Pivot charts, the key support level is placed at 10,038.17, followed by 9,982.13. If the index starts moving upwards, key resistance levels to watch out are 10,187.37 and 10,280.53.
The Nifty Bank index closed at 24,245.1 on Monday. The important Pivot level, which will act as crucial support for the index, is placed at 24,091.97, followed by 23,938.83. On the upside, key resistance levels are placed at 24,493.17, followed by 24,741.23.

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.

US markets end lower, Dow down 1.3%

US stocks dropped on Monday, with the S&P and Nasdaq suffering their worst day in just over five weeks, as concerns over increased regulation for large tech companies was spearheaded by a plunge in Facebook shares, Reuters reported.

The Dow Jones Industrial Average fell 335.6 points, or 1.35 percent, to close at 24,610.91, the S&P 500 lost 39.09 points, or 1.42 percent, to 2,712.92 and the Nasdaq Composite dropped 137.74 points, or 1.84 percent, to 7,344.24.

Asian stocks slump as Japan slides more than 1%

Asian markets were weaker on Tuesday, as the pullback on Wall Street overnight weighed on sentiment early in session. The Nikkei 225 fell 1.04 percent, or 223.21 points, tracking the declines seen stateside overnight while the broader Topix index edged lower by 0.8 percent as all but two sectors slipped into negative territory, CNBC reported.

SGX Nifty

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 26 points or 0.26 percent. Nifty futures were trading around 10,089-level on the Singaporean Exchange.

US expected to impose up to $60 bn in China tariffs by Friday: Sources

The Trump administration is expected to unveil up to USD 60 billion in new tariffs on Chinese imports by Friday, targeting technology, telecommunications and intellectual property, two officials briefed on the matter said Monday, Reuters reported.

China runs a USD 375 billion trade surplus with the United States and when President Xi Jinping’s top economic adviser visited Washington recently, the administration pressed him to come up with a way of reducing that number.

Sebi may tell exchanges to raise fees for trading in illiquid stocks

Sebi has asked stock exchanges to raise transaction fees for trading in illiquid stocks in their recent discussions, two people aware of the matter said. The regulator feels some of these may be shell companies that could expose small investors to high risks, the people said on condition of anonymity.

Most illiquid stocks are listed on BSE Ltd, which is already charging more for trading in such stocks. However, the regulator feels even this isn’t enough, Mint reported.

Trump issues action blocking Venezuela cryptocurrencies within US

President Donald Trump issued an executive order Monday banning any transactions within the United States involving any digital currency issued by, for, or on behalf of the Government of Venezuela, CNBC reported.

The order applies to US citizens as well as anyone within the United States, and includes cryptocurrency issued on or after January 9. President Trump's order is in response to recent attempts by Venezuelan President Nicolas Maduro's regime to "circumvent U.S. sanctions by issuing a digital currency," the White House said in a statement.

Hindustan Aeronautics IPO subscribed 45% on Day 2

State-owned Hindustan Aeronautics' initial public offer was subscribed 45 percent on the second day of bidding on Monday. The IPO, through which the Bengaluru-based firm aims to raise Rs 4,229 crore, received bids for 1,53,96,864 shares against the total issue size of 3,41,07,525 shares, data available with the NSE showed.

The IPO is of 34,107,525 shares and is scheduled to close today. The price band for the issue has been fixed at Rs 1215-1240. SBI Capital Markets and Axis Capital are managing the issue.

UK wins Brexit transition deal in return for Irish vow

Britain and the European Union agreed on Monday to a transition period to avoid a “cliff edge” Brexit next year — though only after London accepted a potential solution for Northern Ireland’s land border that may face stiff opposition at home, Reuters reported.

It means solving outstanding issues, notably how to avoid a “hard border” that could disrupt peace in Northern Ireland. Britain says an EU-UK free trade deal to be sealed by 2021 can do that. But Dublin insists the Brexit treaty must lock in a “backstop” arrangement in case that future pact does not work.

India's net exports not doing well: Bibek Debroy

India's net exports are not doing well even as the global economy is on the recovery path, Bibek Debroy, the head of Economic Advisory Council to the Prime Minister (EAC-PM) and Niti Aayog Member, said on Monday.

"Net exports is not doing well. During high growth years, net exports performed much better ... That world economy has not been doing that bad," he said at an event organised by industry body FICCI. Debroy also noted that ideally the central bank should intervene in the market but intervention by the RBI in the market is not without its cost side.

India most vulnerable country to climate change: HSBC

India is the most vulnerable country to climate change, followed by Pakistan, the Philippines and Bangladesh, a ranking by HSBC showed on Monday. The 67 nations represent almost a third of the world‘s nation states, 80 percent of the global population and 94 percent of global gross domestic product.

Of the four nations assessed by HSBC to be most vulnerable, India has said climate change could cut agricultural incomes, particularly unirrigated areas that would be hit hardest by rising temperatures and declines in rainfall.

India's CAD likely at 1.7% this fiscal: BofAML

India's current account deficit is expected to be around 1.7 per cent of GDP in this financial year, largely owing to higher oil prices, says a BofAML report. The global financial services major has raised its CAD forecast by 10 bps to 1.7 percent of GDP in 2017-18 and by 20 bps to 1.9 percent of GDP in 2018-19.

According to data released by the Reserve Bank on Friday, the CAD rose to 2 percent of the GDP at USD 13.5 billion in the December quarter, up from USD 8 billion or 1.4 percent in the year-ago period, on the back of higher trade deficit.

Sebi exempts govt from open offers for 6 PSBs post capital infusion

Sebi on Monday exempted the central government from making an open offer for the shareholders of Punjab National Bank, Canara Bank and four other state-owned lenders following capital infusion.

The exemption has been given with regard to Syndicate Bank, Vijaya Bank, Bank of Baroda and Union Bank of India also. Following capital infusion in these listed public sector banks, the government's respective stakes would rise in them.

Manufacturing cos' sales improve in Q3, profit subdued: RBI

The country's manufacturing sector witnessed an improvement in sales growth in the third quarter this fiscal on annual basis, though net profit has remained subdued due to lack of support from other income, says a RBI data on performance of private corporate sector.

The RBI data released today said the information technology (IT) sector recorded a modest improvement in sales growth, although lower than a year ago. The services (non-IT) sector showed signs of revival as reflected by positive sales growth, it added. It is based on abridged financial results of 2,705 listed non-government non-financial (NGNF) companies for third quarter of 2017-18.

Rupee slides 23 paise to 1-week low

The rupee on Monday slid by 23 paise to close at one-week low of 65.17 against the US currency due to concerns over widening current account deficit and a strong dollar ahead of a crucial US Federal Reserve meet.

Vinod Nair, Head of Research, Geojit Financial Services Ltd said the "rupee weakened due to widening current account deficit" and rising bond yields. The yields on US government bonds rose to multi-year high ahead of the Federal Open Market Committee meet.

Bandhan Bank IPO oversubscribed 14.60 times on final day

The initial public offer (IPO) of Bandhan Bank has been oversubscribed 14.59 times so far on the final day of bidding Monday. The Rs 4,473-crore IPO has received bids for 121.81 crore equity shares against the total offer size of 8.35 crore shares, as per data available on the NSE website.

The IPO also consists of an offer for sale of up to 1,40,50,780 equity shares by IFC and up to 75,65,804 equity shares by IFC FIG.  The bank is aimed to raise Rs 4,413.4 crore - Rs 4,473 crore at a price of Rs 370-375 per share, respectively.

MCX plans 3 spot exchanges for base metals, gold and natural gas

Multi Commodity Exchange of India (MCX) is planning to set up three separate spot exchanges for gold, base metals and natural gas, a source familiar with the development told Moneycontrol. The exchange is talking to government bodies, including GAIL, for the spot exchange for natural gas.

MSME credit to grow at 12-14% over next 5 years: ICRA

The credit to micro, small and medium enterprises (MSMEs) is expected to grow at 12-14 percent over the next five years, helped by higher lending by non banking finance companies (NBFC) to the segment, says an ICRA report.

NBFC and housing finance companies are expected to expand at about 20-21 per cent compounded annual growth rate (CAGR) in this space during the period, while bank credit to this segment, which accounted for about 84 percent of total MSME credit, is estimated to grow at a lower CAGR of 9-11 percent, it said.

7 stocks under ban period on NSE

Security in ban period for the next day's trade under the F&O segment includes companies in which the security has crossed 95 percent of the market-wide position limit.

Securities which are banned for trading include names such as BEML, DHFL, HDIL, IDBI, JP Associates, Reliance Communications, and SAIL.

Monday, 19 March 2018

Nifty slips below 10,300 mark; Metal, FMCG stocks decline

Nifty slips below 10,300 mark 

Domestic share indices started the session on a weak note, tracking global markets, which were subdued on US import tariff concerns, and led by continued weakness in commodity-related and banking stocks. Stock Market Tips
At 11:33 AM, the BSE Sensex was trading at 33,445, down 240 points, while the Nifty50 was ruling at 10,290, down 70 points.

In the broader market, the BSE Midcap and the BSE Smallcap indices inched higher by 0.15% and 0.40%, respectively.
hares of Aurobindo Pharma, up 1.5%, led gains on Nifty50 after the company received the US Food and Drug Administration's approval for generic of Ziagen drug.
ITDC stock soared 10.5% on the BSE. The stock gained for second consecutive session on the back of heavy volumes.
JP Associates stock rallied 10% after Rare Enterprises bought 3cr shares or 1.2% equity stake in the company at Rs18.37 per share valuing the deal at Rs55cr.
Shares of metal and mining companies continued their weakness. The Nifty Metal index fell 1.1%, declining for the third straight day, led by 5% fall in shares of Coal India as they traded ex-dividend today.
The Nifty Commodities and the Nifty Energy indices also fell nearly 1% each in early session. 
Banking stocks also extended the recent weakness as the Nifty PSU Bank and the Nifty Bank indices fell over 0.5% each.
Shares of pharmaceutical companies were among the top performers in morning trade, with the Nifty Pharma index rising 0.5%.
The volatility index, India VIX down 0.34% at 14.2800.
Aurobindo (+2%), M&M (+1.8%), Zee (+1.5%), Yes Bank (+1.3%) and Hindalco (+1%) were the top gainers on Nifty50.
IOC (-1.6%), UltraTech (-1.2%), BPCL (-1.1%), NTPC (-1.1%) and HPCL (-1%) were the top losers in today’s trade.
A total of 10 stocks registered a fresh 52-week high in trade today, while 14 stocks touched a new 52-week low on the NSE.

Tuesday, 13 March 2018

Scouting for value stocks? Top 12 contra buys in volatile market

Scouting for value stocks | Ideal Stock :-

After a blockbuster 2017, profit booking and relentless selling by foreign institutional investors (FIIs) pulled the S&P BSE Sensex lower by 6 percent so far in the year 2018 as of closing price of on March 12.

There are plenty of domestic and global factors which pulled the index lower but the good news is that the bull run is intact and investors who are in the market for long innings have nothing to fear.
Investors should look at companies across market caps which have a sustainable business model and can deliver high-quality growth. Smallcaps are still a better bet than Sensex or Nifty, suggest experts.
Commenting on the Indian market, Shankar Sharma of First Global in an interview with CNBC-TV18 said that there is no bear market in Indian equities as well as global markets. India is not in a bear market but it could lag in terms of performance. “I am publically very bullish on the smallcaps for the last 4 years,” he said.
“After speaking to the management of many companies in the last 1 month in which we have exposure suggest that FY19 numbers for most of the companies suggest earnings growth of 30-50 percent or even 150 percent which makes valuations not very demanding,” he suggests.
After the recent correction, valuations of Indian market have come down to a reasonable level which should give motivation to investors to accumulate quality stocks on declines. Investors should focus on stocks which have either corrected a lot or have huge growth potential.
Indo Count
The home textile companies which are mainly exporters of bed linen and terry towels like Indo Count should do well in the next 2-3 years as the destocking by large retailers in the US is coming to an end and as they start restocking growth should come back. Indo Count is trading at 10x FY19E for a 10 percent RoE profile.
Cochin Shipyard
Cochin Shipyard has been performing poorly because of the physiological linkage to the shipping industry. It does a large amount of ship building work for the Navy and Coast Guard.
The order book is healthy providing visibility for next 4 years. If one removes the cash and other income then operational RoE goes to 25 percent compared to 11 percent reported in FY18E.
Agrochemical stocks which have corrected a lot are also contra buys. We like UPL Ltd. in this space as it is the largest player in the industry and its earnings this year is expected to be nearly 5x higher than its second largest peer, PI Industries.
The sector has companies which have a RoE profile of 20 percent and trades at ~20x one Forward PE basis. UPL for a 24 percent RoE profile and trades at 15x on Fw PE basis.
DB Corp
DB Corp could be a good contra play in the media space. People have a very negative sentiment towards print media companies.
The worst seems to be behind in FY18 and numbers should improve from FY19E onwards. Due to the favourable election cycle, the print advertisement should pick up in FY19. For more than 25 percent EBITDA margin, more than 20 percent RoE and a dividend yield of over 3 percent the stock trades cheap at around 13x FY19E.
Tata Motors
Tata Motors could be a good contra play in the automobile space. Past few quarters have disappointed investors due to volatile margins and forex hedging losses. Going forward as Hedging losses unwind we expect JLR EBITDA margins to improve.
Based on the anticipated improvement in EBITDA margins and earnings the stocks look cheap. There could be a positive surprise from Indian operations, mainly CV business.
State Bank of India
The SBI stock has corrected 21 percent from its recent high. However, the stock can be a good contrarian play as lower slippages in FY2019E over FY2018E, improving loan growth and resolutions of IBC accounts are expected to improve margins in the near term.
CASA growth has remained strong in recent quarters led by strong growth in savings accounts and this will provide some relief to incremental borrowings cost.
Analyst: Vinod Nair, Head of Research at Geojit Financial Services
HCL Technologies
The stock underperformed the benchmark Nifty index in the last 1 year, up to a little over 13 percent. Geojit continues to remain positive on HCL on a consolidated basis driven by traction in deal wins and strength in Mode 2 & 3 services (focus on next-gen offerings).
Revenue contribution from Mode 2 & 3 services surpassed 25 percent of the total revenue and the management is eyeing to further increase the contribution from digital business to 40 percent over the next few years.
Deal wins remained strong in Q3FY18 with the company signing twenty transformational deals across services. The company’s strategy of augmenting its IP based partnerships with technology vendors to broaden its product offerings is expected to provide a tailwind to revenue growth going ahead. We factor revenue CAGR of 9 percent over FY17-20E.
Aarti Industries
After rallying a little over 50 percent in the last one year, the stock has undergone some bit of consolidation so far in the year 2018. It rose a little over 2 percent in the same period.
AARTI Industries Ltd (ARTO) is a global leader in Benzene based derivative products. The company has a diversified product portfolio with end users in pharma, agrochemicals, specialty polymers, paints & pigments.
ARTO’s Q3 Revenue grew by 29 percent YoY, led by strong growth across business segments with Speciality chemical business grew by 23 percent YoY, home & personal care business 103 percent YoY and Pharma 35 percent YoY.
Recently, ARTO signed Rs10,000cr exclusive supply contract with a global chemical conglomerate for high-value speciality chemical intermediate over a period of 20 years with the commencement of supplies from the Year 2020.
Going forward, we believe that with strong off-take Pharma segment and stable growth from Specality chemicals segments, we factor revenue to grow 14 percent CAGR over FY18E- FY20E. Given healthy earnings outlook, we continue to have a positive rating on the stock.
Torrent Pharma
The stock is down nearly 6 percent so far in the year 2018 and on a 1-year basis, it slipped by nearly 1 percent. But, Geojit feels that there is tremendous potential in the business.
Torrent’s acquisition of branded formulations business of Unichem Laboratories will strengthen its presence in the domestic market with expansion in the chronic portfolio, improved market share and widen distribution networks.
Besides recovery in US business is expected to drive robust growth going ahead. Higher revenue growth from Europe is also another positive for the company. Given increased R&D spends for high margin/high-volume products and meaningful new launches for coming years.
Notably, the management has guided for 10-15 ANDA filings in FY18 and also indicated plans to submit 3-4 derma products by this fiscal end. We expect Torrent Pharma’s revenue and Adj. PAT to grow at a CAGR of 14 percent/9 percent over FY17-20E owing to increased contribution from the domestic, gradual pickup in US sales through quality filings and strong growth in Germany, Brazil and RoW.
Idea Cellular
Amid the ongoing troubles in the telecom sector, shares of Idea Cellular slipped a little over 27 percent so far in the year 2018 and on a 1-year basis it has fallen over 24 percent.
Idea’s focus on the Vodafone merger and accelerating synergistic benefits both in terms of operating cost and capex is expected to achieve a higher level of efficiency going ahead.
The merger process is likely to be completed by H1CY18, we expect synergies to start accruing from FY20E leading to an expansion in EBITDA margin to 28.4 percent in FY20E.
Importantly, the company’s fund-raising will provide Idea with much-needed liquidity to boost network and protect its revenue and market share. Moreover, Idea’s plan to monetise its tower assets will strengthen its balance sheet.
Tata Global Beverage
The stock has fallen over 14 percent so far in the year 2018 but it nearly doubled in the calendar year 2017. Geojit Financial Services feel that the stock is a good buy on declines.
Tata Global Beverages (TGB), an integrated natural beverage company derives ~70 percent of revenue from branded tea business and ~60 percent of the revenue comes from markets outside India.
TGB has put in place a new strategy to drive growth and profitability including exiting from loss-making geographies. Under the core business rejuvenation, TGB will expand its product offerings in premium and non-black categories and enhanced its focus on green and herbal tea categories (higher margins).
It is also planning to foray in large tea consuming Asian markets such as Singapore, Malaysia, and China. To renew Nourishco (JV), TGB launched several new products/variants under Tata Gluco Plus and Himalayan water brands.
We expect TGB to gain market share across geographies led by its innovative premium product offerings and expect revenue/PAT to grow at ~6 percent/23 percent CAGR over FY17-20E.
Analyst: Ritesh Ashar, Chief Strategy Officer, KIFS Trade Capital
Bhansali Engineering Polymers
The stock witnessed profit booking so far in the year 2018 after it rallied over 600 percent in the last one year. Investors should look at adding positions on every fall.
The company currently has a capacity of Rs80,000 whereas the domestic demand is 350000 which is being catered by only two such companies in India.
By 2018 and 2022 company is planning for capacity expansion to 350000 which is nearly 4 times. And, the company will be self-sufficient in catering the overall domestic demand. Financials of the company are very lucrative. Accumulate on dips should be the strategy.
Firstsource Solutions
The stock has underperformed on a 1-year basis when compared to the benchmark index. It rose a little over 11 percent in the last one year. But, tracking the momentum in 2018, IT stocks are likely to pick up momentum.
FSL is into small cap IT – Software’s we have seen IT has been performing and likely to outperform. As per RRG IT sector is the only sector which is in the Trending quadrant. free trial
The company has posted a net profit of Rs.99.55 crores for the period ended December 31, 2017, with reduction of debt and available at cheap valuations. FSL looks to be a turnaround and open for targets of more than 65 with long term horizon.

Wednesday, 7 March 2018

Market Live: Sensex falls 100 pts, Nifty breaks 10,200 in opening:

 Midcap underperforms | Ideal Stock :-

Benchmark indices opened lower on Wednesday, tracking weakness in Dow Jones futures that fell 2 percent indicating lower opening on Wall Street.
The 30-share BSE Sensex was down 127.47 points at 33,189.73 and the 50-share NSE Nifty fell 48.30 points to 10,201.
Tata Motors hit fresh 52-week low, falling half a percent.
Nifty Midcap index was down 113 points or 0.59 percent.
Union Bank, Canara Bank, PFC, Allahabad Bank and Karnataka Bank hit fresh 52-week lows.
Ashoka Buildcon, Sadbhav Infrastructure, Dilip Buildcon, TeamLease and Blue Star gained 1-2.5 percent.

Monday, 5 March 2018

2018 is 5th year of Bull market!

 If you have Rs10 lakh to invest go for direct equities | Ideal Stock:-

Go for direct equity with the help of an advisor or a portfolio manager because mutual funds have high expense ratio and inherent disadvantages, Dipan Mehta, Director, Elixir Equities said in an exclusive interview with Moneycontrol’s Kshitij Anand.

Q) The tables have turned in favour of bears at least in the medium term. The Indian market has become a sell on rallies kind of market. What is your assessment of the market at current juncture?
A) This the fifth year of a bull market which has been a slow steady one with very little volatility. There have been a few corrections and we are in the middle of one at present. For the long-term investor, this is still a buy on dips market.
Whether this correction will deepen or not will become evident over the next 2-3 weeks. If a lower tops/lower bottoms formation get created and broad market indices trade below their 200 DMA (which they are not at present) then we may be in for an extended sell-off or a mild bear market.
Q) What is your advise to investors who want to put Rs 10 Lakh into markets? He is in the age bracket of 35-40 years. He/she is looking at forming a portfolio with direct equities, MFs, a part of fixed income as well?
A) Go for direct equity with the help of an advisor/portfolio manager. Mutual funds have high expense ratio and inherent disadvantages. Set aside an amount of emergency plus 1 year’s salary/income into debt and put the rest into good quality stocks.
Aim to add incrementally to your portfolio over time particularly when the chips are down.
Q) What should be the ideal strategy for investors in terms of sectors? Do you think PSU banks are a good buy at current levels? What are the sectors which you think are likely to show momentum in the year 2018?
A) PSU Banks, IT and Pharma are to be avoided.
-25-35 percent should be in private sector retail banks and NBFCs.
-15 percent in auto and related ancillaries,
-15 percent in Indian FMCG stocks,
-35 percent rest in domestic consumption stocks such as building materials, appliances, aviation, retail, gaming, entertainment, media, fast food, branded apparels, and innerwear.Q) The US Fed signalled a minimum of 3 rate hikes for the year 2018. Do you agree the global overhang is likely to weigh on Indian markets for the rest of the year?
A) No, but there will be a knee-jerk reaction whenever there is a global sell-off. With the rise and rise of domestic mutual funds, the influence of the foreign investors has reduced dramatically which means that the co-relation on a medium to long-term has weakened.
Moreover, foreigners have been investing for 2 decades and they have a more mature approach to India. We are a better-understood economy and capital market.Q) What should be the right strategy for investors right now – sit on cash and wait for a dip or deploy cash incrementally throughout the year?
A) Nibble into the bluest of blue-chip stocks. Companies which have missed in the bull market so far must be targeted for investment. Investors must endeavour to improve the quality of the portfolio.
There are two-fold benefits. If the bull market resurges, then these will be first of the block and gain market leadership. Should a bear market evolve, then the damage will be less and investors will be able to sleep better knowing they have quality stocks in their portfolio.
Q) What will happen in the banking space given the fact that the cost of borrowing is inching higher. The RBI might keep rates on hold in its next policy but may raise rates in 2018?
A) Private sector banks and NBFCs will survive and thrive in every interest rate scenario. Growth and profitability will be temporarily impacted but the process of private sector gaining market share at the expense of PSU lenders will continue and gain traction.
Q) With Dollar gaining strength there is a higher possibility of rupee weakness. Which sectors or stocks likely to benefit the most? What is your target level for the currency?
A) Sectors which will benefit are obvious but be sure to assess the basic underlying fundamentals. No business will create value just because the currency is depreciating. Our view on the Rupee is not so negative.