Embed Size (px)
Citation preview
1
2-Sep-16
Latest Points % Chg.
NIKKEI 225 * 17074.3 36.6 0.2
HANG SENG * 23699.7 50.2 0.2
DOWJONES 18492.0 72.7 0.4
NASDAQ 5249.9 22.7 0.4
SGX NIFTY FUT* 8913.0 5.5 0.1
INFY 16.3 0.2 1.2
HDFC BANK 72.9 0.3 0.4
ICICI BANK 7.9 0.0 0.0
TATA MOTORS 42.2 1.0 2.4
WIPRO 10.4 0.1 1.2
DR REDDY 46.9 0.9 2.0
* At 08:20 a.m. IST on 6-Sep-16
WORLD INDICES & INDIAN ADRs (US$)
6 September 2016
Sushil Financial Services Private Limited Member BSE : SEBI Regn.No. INB/F010982338 | NSE : SEBI Regn.No.INB/F230607435. Regd. Office : 12, Homji Street, Fort, Mumbai 400 001. Phone: +91 22 40936000 Fax: +91 22 22665758 Email : [email protected]
Please refer to important disclosures at the end of the report For private Circulation Only.
EQUITY
Latest 1 Day P/E* P/B*
SENSEX 28,532.1 0.4 21.1 3.0
NIFTY 8,809.7 0.4 22.2 3.0
CNXMIDCAP 15,385.3 0.6 32.3 2.2
2-Sep-16
*Source: Bloomberg
COMMODITIES
Latest Points % Chg.
GOLD 1327.3 (0.2) (0.0)
CRUDE OIL (WTI) 45.3 0.9 1.9
CRUDE OIL (Brent) 47.7 0.1 0.1
FII ACTIVITIES IN DERIVATIVES 2-Sep-16
FII Net Buy (Rs.
Crs)
Open
Interest
Ch. in Open
Int. (DOD)Index Futures (399.2) 29563.9 (0.4)
Index Options 178.9 70826.6 3.4
Stock Futures 401.0 58633.1 1.3
Stock Options (74.2) 5606.7 10.0
NET INFLOWS (Rs. Crs.) 1-Sep-16
NET MTD YTD
FII (381.9) (381.9) 40286.3
MF 106.9 106.9 10216.0
*YTD From January till date
2-Sep-16
Closing % Chg.
Dollar Index 95.7 (0.12)
Rs. / $ 66.8 (0.20)
Rs. / EURO 74.8 0.16
Rs. / UK Sterling 89.0 0.52
EXCHANGE RATE
G.SEC. YIELD 2-Sep-16
Yield (%)
GS CG2025 8.2% 7.12
US 10 Year Gsec 1.61
MARKETS TODAY Local market is set to re-open after a long weekend as benchmarks remained in a strong uptrend with the Nifty up 30 percent from Feb lows. Macro data and quarterly results are expected to influence trading this week. The SGX Nifty indicates a tepid start. Resistance is seen at 8845 levels & support is seen at 8787 levels. Stock watch: Infosys, Cipla, DRL, Inox Wind, ENIL, MRPL, NBCC.
KEY OVERNIGHT DEVELOPMENTS Wall street advanced on Fri as a weaker-than-expected payrolls report tamped down expectations for a Sept rate hike from the US Fed Reserve, although hawkish comments from another Fed official kept expectations for one this year intact. European stocks touched an eight-month high in choppy trading. Asian shares edged up on Tues but were mostly in a holding pattern after Monday's US holiday, as investors awaited a policy decision from the Reserve Bank of Australia. MUST KNOW….
Tata Motors at new 1-year high, up on strong PV, US JLR sales (Rs.550, +1%)
HC nod for merger of Airtel's Bangladesh ops with Robi Axiata (Rs.319, +3%)
IOC's Guj refinery to expand capacity to 18 MTPA by 2020 (Rs.573, -0.3%)
PI Industries transfers 51% stake in subsidiary; shares up (Rs.824, +1%)
Brooks Lab up on manufacturing licence for Gujarat plant (Rs.121, +20%)
L&T bags orders worth Rs.1,458 crore (Rs.1502, -0.3%)
Bajaj Auto sales down 5% in Aug (Rs.3000, +0.1%)
Q1 realisations fell; FY17 volume growth to be 10%: Indo Rama (Rs.34, +2%)
New customers, expansion to boost growth: Mahanagar Gas (Rs.633, -0.3%)
Aim to meet exports tgt of 16 lk units in FY17: Bajaj Auto (Rs.3000, +0.1%)
US PTO rules in Mylan's favour, invalidates Teva patent: Natco (Rs.680, +0.5%)
Transformers and Rectifiers up on order win of Rs.68 crore (Rs.318, +2%)
BHEL commissions Unit-4 of Teesta Low Dam hydro power project (Rs.137, +0.7%)
Patel Engineering bags Rs.2,500 cr arbitration award (Rs.65, +20%)
DCB Bank launches mobile payment service for retail outlets (Rs.116, -2%)
Sugar price stable; will sell at Rs 35.50/kg: Balrampur Chini (Rs.103, -2%)
Product mix driving margins; eye 15% revenue by FY19: Parag Milk (Rs.340, +0.01%)
Reliance Infra hails Cabinet move to revive constructn sector (Rs.615, +5%)
Cipla gets USFDA nod for overactive bladder treating drug (Rs.578, +0.04%)
Cadila up on EIR report from USFDA for Ahmedabad SEZ unit (Rs.385, +2%)
Jet launches in-flight mobile entertainment streaming (Rs.534, -1%)
MOIL increases prices of ferro-grade manganese ore, fines (Rs.270, 8%)
Expect 5-7 mn tonnes sugar deficit next year: Shree Renuka (Rs.16, -3%)
Delays in ramp-ups should get done in 1 or 2 mths: Mindtree (Rs.550, -1%)
Dr Reddy's launches generic anti-depressant drug in US (Rs.3123, +1%)
Infosys enters into JV with Saudi Prerogative Company (Rs.1031, -1%)
Allahabad Bank to raise Rs.500 cr by issuing equity shares (Rs.85, +3%)
Aurobindo plans to launch 19 drugs in US in next 3 quarters (Rs.779, +1%)
2
Corporate Announcements & Financial Scoreboard L&T Tech Services fixes IPO price band at Rs.850-860/sh
L&T Technology Services, the subsidiary of engineering & construction major Larsen & Toubro, has fixed a
price band for its 1.04 crore shares public issue at Rs.850-860 per share. The offer by engineering research
and development (ER&D) services company will be opened for subscription on Sept 12 and will close on
Sept 15. L&T informed exchanges yesterday that the red herring prospectus filed by the subsidiary
company with the Registrar of Companies, Maharashtra, Mumbai, has been approved on Sept 1. This is an
offer for sale issue by its parent company Larsen & Toubro, which will dilute 10% shareholding and receive
Rs.894.4 crore at Rs.860 per share. Currently L&T holds 100% stake in the company. "Listing will enhance
brand name and provide liquidity to the existing shareholders. Our company will not receive any proceeds
from the offer," the company said. This is the second public issue from L&T Group during the quarter.
Larsen & Toubro Infotech, the software solutions provider, raised more than Rs.1,200 crore through the
issue in Jul. L&T Technology provides ER&D services to manufacturing, technology and process
engineering companies. It operates in five industry segments - transportation, industrial products,
telecom & hi-tech, process industry and medical devices. "50.3% of revenue in FY16 was derived from the
three segments of industrial products, process industry and medical devices," the company said in its
DRHP filed in Jul. It derives 80.2% of revenues from customers in North America and Europe, which are
the two largest regions of corporate ER&D spend and represented over 73% of the USD 1,007 bn
corporate ER&D services spend in 2015 (according to Zinnov Report). Its profit in FY16 surged 34% to
Rs.416.6 crore and revenue grew by 18.9% to Rs.3,142.7 crore compared to previous financial year.
Operating profit shot up 40.7% to Rs.596.65 crore and margin expanded by 298 basis points to 18.98% in
same period. Equity shares are proposed to be listed on the BSE and the NSE. Kotak Mahindra Capital
Company, DSP Merrill Lynch, JM Financial Institutional Securities and SBI Capital Markets are book
running lead managers to the issue while Karvy Computershare is the registrar.
Tata Motors at new 1-year high, up on strong PV, US JLR sales (Rs.550, +1%)
Tata Motors' luxury car brand Jaguar Land Rover once again showed stunning performance in Aug US
sales that lifted the stock to fresh 52-week high of Rs.554.45, up as much as 1.9% in early trade Fri. JLR's
US sales in Aug grew by 46% to 9,329 vehicles compared with year-ago period, driven largely by Jaguar's
recently launched F-PACE and XE. Jaguar sales shot up sharply by 188.5% to 3,298 units while Land Rover
sales increased 15.4% to 6,031 units on yearly basis. Tata Motors' passenger vehicles sales in the domestic
market were also strong, growing 16% to 13,002 units in Aug compared to same month last year but
disappointed with commercial vehicles sales that fell 3%. "Passenger and commercial vehicle sales
(including exports) in Aug were at 43,061 vehicles, a growth of 6%, over 40,679 vehicles sold in Aug 2015,"
the company said in its filing on Thurs. Domestic sales grew by 3% while exports increased 27% to 6,595
vehicles. Medium & heavy commercial vehicle (M&HCV) sales declined 17%. "The segment saw subdued
demand, with the slowdown of recent months continuing, as a result of postponement of replacement
and fleet expansion," Tata Motors reasoned. Light commercial vehicles sales were up 10% at 13,495 units
year-on-year.
Coal India Aug output at 32.43 MT; misses target (Rs.333, -2%)
State-owned Coal India said it produced 32.43 mn tonnes (MT) of coal in Aug, missing its target for the
month. The company's target for Aug was 40.89 MT, Coal India (CIL) said in a BSE filing. It produced
194.81 MT of coal in the first five months on the ongoing fiscal. However, the target for Apr-Aug period of
3
2016-17 was 213.61 mn tonnes. The government has set a production target of 598 mn tonnes for CIL for
the ongoing fiscal. The company is eying to double its production to 1 bn tonnes by 2020.
HC nod for merger of Airtel's Bangladesh ops with Robi Axiata (Rs.319, +3%)
Bharti Airtel said it has received the approval of Bangladesh High Court for merger of its Bangladesh
operations into Robi Axiata Ltd. Earlier this year, Indian telecom giant Bharti Airtel and Malaysia-based
Axiata Group inked a pact to merge their respective operations in Bangladesh - Airtel Bangladesh and Robi
Axiata - to create the second largest telco in that country. Axiata will hold 68.3% controlling stake in the
combined entity, Bharti Airtel 25% and the remaining 6.7% will be with Japan-based NTT DoCoMo, an
existing shareholder. In a BSE filing, Bharti Airtel said that spectrums, assigned to both the companies
prior to the proposed amalgamation, will continue to be used by the merged entity for the time period
stipulated in the licence. The filing further said that the difference between the price paid by Robi for
spectrum in 2011 and that paid by Airtel in 2005 of USD 65 mn would be payable by the merged entity to
Bangladesh telecom regulator - BTRC. "BTRC shall determine on the mechanism for payment in
installments in line with the 2G spectrum payment that was paid by Robi Axiata," it said. It said that in
event that Robi Axiata decides to return any spectrum to BTRC, the value of the returned spectrum has
been fixed at about USD 1.3 mn per Mhz per year. BTRC in consultation with Robi Axiata shall ultimately
decide the issue of return of spectrum after considering the interference, quality of service and the
necessity of the spectrum for providing the service. The fees in relation to the proposed merger has been
fixed at USD 12.8 mn payable to BTRC, which shall determine the mechanism of payment of these fees
including the possibility of installment payment," it said.
Hyundai sales grow 9.3% to 59,707 units in Aug
Hyundai Motor India (HMIL) reported a 9.3% increase in total sales at 59,707 units in Aug. The company
had sold 54,607 units in the same month last year, HMIL said in a statement. In domestic market, Hyundai
sold 43,201 units last month compared with 40,505 in Aug last year, a growth of 6.7%. Exports rose 17%
to 16,506 units as against 14,102 units in the same period last year.
HMSI sales up 25% to 4,92,416 units in Aug
Honda Motorcycle & Scooter India (HMSI) reported a 25% increase in total sales at 4,92,416 units in Aug.
The company had sold 3,95,196 units in the same month last year, HMSI said in a statement. In the
domestic market, the company's sales stood at 4,66,342 units last month, as against 3,73,136 units in Aug
last year, a growth of 25%.
IOC's Guj refinery to expand capacity to 18 MTPA by 2020 (Rs.573, -0.3%)
The capacity of Indian Oil Corp's Gujarat Refinery will bolstered to 18 mn tonnes per annum (MTPA) by
2020 from the existing 13.7 MTPA, plant's Executive Director S K Dhargupta said. Dhargupta, on the
occasion of Indian Oil Day, which was observed today, said after the expansion, it will supply 100% BS-VI
petrol and diesel. The programme is expected to be completed by 2020, he added. "The Gujarat Refinery
was dedicated to the nation in 1966 with 2 MTPA refining capacity. Refining capacity will be expanded to
18 mn MTPA from the existing 13.7 MTPA," he said. He said, at present, the refinery has spent Rs.1,330
crore for revamping DHDT, DHDS, VGD-HDT units to supply BS-IV diesel from Jan this year as such it is
ready to supply 100% BS-IV petrol. "We have geared up to meet Central government's Auto Fuel Vision &
Policy-2025 for supply of BS-IV & BS-VI fuels in the country in the stipulated time," said Dhargupta.
Located at Koyali village on the city outskirts, Gujarat Refinery is the second largest refinery of the IOC.
4
PI Industries transfers 51% stake in subsidiary; shares up (Rs.824, +1%)
Shares of PI Industries rose Fri. The company's subsidiary PI Life Science Research has transferred 51%
stake held in Solinnos Agro Sciences to Mitsui Chemicals Agro Inc. Japan. Accordingly, Solinnos has ceased
to be a step down subsidiary of PI Industries from Sept 1, 2016. Earlier in the month of May, the company
had entered into agreement with Mitsui Chemicals to establish a joint venture company in India.
Brooks Lab up on manufacturing licence for Gujarat plant (Rs.121, +20%)
Shares of Brooks Laboratories rose Fri has received manufacturing licence for its Gujarat facility. The
Commissioner of Food & Drugs Control Administration, Gandhinagar has granted manufacturing licence to
the company's new manufacturing facility at Vadodra, Gujarat to manufacture of pharmaceutical
products. The said licence is valid for the period of 5 years from Aug 16, 2016 to Aug 15, 2021.
L&T bags orders worth Rs.1,458 crore (Rs.1502, -0.3%)
Infrastructure major Larsen & Toubro (L&T) said its construction arm has bagged orders worth Rs.1,458
crore across business verticals. "The construction arm of L&T has won orders worth Rs.1,458 crore across
its various business segments," the company said in a BSE filing. L&T said its power transmission and
distribution business has bagged engineering, procurement and construction orders worth Rs.654 crore in
the international and domestic markets. In the international market, it has got a contract from the
National Grid Saudi Arabia (a subsidiary of Saudi Electricity Company) for the construction of a 132 kV
double circuit transmission line and 132 kV cabling in the Rafah, Arar, and Sakaka areas of Saudi Arabia.
While in India, it has received an order, under Integrated Power Development Scheme (IPDS), from
Kanpur Electricity Supply Co Ltd (KESCo) and Power Grid Corporation of India. L&T said its building and
factories business has bagged projects worth Rs.518 crore in the domestic market. It has also received
order worth Rs.200 crore from Bihar State Electronics Development Corporation (BSEDC) for the
implementation of a Wi-Fi Project in the campuses of government universities, constituent colleges and
other premier academic institutions in the state of Bihar and additional orders worth Rs.86 crore from
various ongoing projects.
Bajaj Auto sales down 5% in Aug (Rs.3000, +0.1%)
Bajaj Auto today reported a 5% decline in its total sales at 3,25,347 units in Aug as against 3,41,965 in the
same month a year ago. Motorcycle sales during the month fell by 4% to 2,79,911 units as against
2,90,436 units in Aug last year, the company said in a BSE filing. Bajaj Auto's commercial vehicles sales
during the month stood at 45,436 units compared with 51,529 units in the year-ago period, a decline of
12%. Its exports in Aug came at 1,25,033 units as against 1,81,658 units a year ago, a fall of 31%, the
company said.
Revised RBI asset sale norms may impose restrictions on cos: L&T (Rs.1502, -0.3%)
The measures announced by the Reserve Bank of India regarding the sale of stressed assets will improve
the situation for industry, according to L&T management. The management is, however, concerned about
the single-borrower/group exposure clause proposed in RBI’s draft regulations, said R Govindan, Vice-
president, Financial and Risk Management, L&T. He told media that the raising the exposure to 25% of the
tier-1 capital at the group level will impose a lot of restrictions. The proposed dispensation will restrict the
availability of banking capital for expansion, Govindan said.
5
Q1 realisations fell; FY17 volume growth to be 10%: Indo Rama (Rs.34, +2%)
In an interview to media, OP Lohia, CMD of Indo Rama Synthetics spoke about the results and his outlook
for the company. Lohia said that fall in commodity prices is the reason for a flat turnover. He further said
that they could not increase the prices because they wanted to pass on the raw material benefit to the
customer.
New customers, expansion to boost growth: Mahanagar Gas (Rs.633, -0.3%)
Mahanagar Gas reported good first quarter numbers with profit rising 19.1% to Rs.92.7 crore year-on-year
(YoY). The revenue, however, dipped 5.5% to Rs.534.1 crore as against Rs.565.1 crore in same period
year-ago. Speaking to media, Rajeev Mathur, MD of the company said the volume growth has been 7.5%
quarter-on-quarters. He guided for a 7-8% rise in quarters ahead. Mahanagar plans to increase number of
customers as well as presence in new areas. More customer acquisitions are expected in both CNG &
PNG. Mathur expects lower gas prices going forward.
Aim to meet exports target of 16 lk units in FY17: Bajaj Auto (Rs.3000, +0.1%)
Bajaj Auto’s Aug total sales were down 5% at 3.25 lakh units versus 3.42 lakh units for the same month
last fiscal. However, domestic total sales were up 25% at 2 lakh units versus 1.6 lakh units YoY. Exports too
were down 31% at 1.25 lakh units versus 1.81 lakh units YoY. Motorcycle sales were down 4% at 2.8 lakh
units versus 2.9 lakh units YoY. However, S Ravikumar, President-Business Development, Bajaj Auto is
confident of meeting their exports target of 16 lakh units in FY17. According to him most export markets
have continued to be stressed but Egypt has seen some improvement in demand now. Domestically too,
the company is looking at uptick in sales for the coming festive season and all capacities are in place to
meet the demand, says Ravikumar. Onam has turned out to be better than last year, he adds. With focus
on the festive demand, the company has decided to push the Pulsar 400 CC launch to a later date, he
says.
US PTO rules in Mylan's favour, invalidates Teva patent: Natco (Rs.680, +0.5%)
Drug firm Natco Pharma said the US Patent and Trademark Office has ruled in favour of its marketing
partner Mylan by invalidating Israel-based Teva Pharmaceuticals' patent related to multiple sclerosis drug
Copaxone 40 mg/mL. "The US Patent and Trademark Office (PTO) has ruled in favour of its marketing
partner, Mylan, in its inter partes review (IPR) proceeding and found all claims of US Patent No. 8,969,302,
which is owned by Yeda Research and Development Co Ltd and licensed to Teva Pharmaceuticals
Industries Ltd, unpatentable," Natco Pharma said in a BSE filing. "This is the third patent related to
Copaxone 40 mg/mL to be found unpatentable in the last week," it further said. Natco said its marketing
partner Mylan believes it is one of the first companies to have filed a substantially complete Abbreviated
New Drug Application (ANDA) containing a Paragraph IV certification for a three times per week
Glatiramer Acetate Injection 40 mg/mL, and expects to be eligible for 180 days of marketing exclusivity in
the US upon final FDA approval. Quoting IMS Health data, the company said, Copaxone 40 mg/mL had US
sales of approximately USD 3.3 bn for the 12 months ending June 30, 2016. On Aug 24, the US Patent and
Trademark Office (PTO) has ruled in favour of Mylan in its inter partes review (IPR) proceedings and found
all claims of two related Copaxone 40 mg/mL patents to be unpatentable.
6
Transformers and Rectifiers up on order win of Rs.68 crore (Rs.318, +2%)
Shares of Transformers and Rectifiers India rose Fri as it has received order of thirteen 765 kV class
reactors worth Rs.68 crore from Power Grid Corporation of India. This is the first order for 765 kV reactors
and with this order, the company has order for the full range of transformers and reactors up to 765 kV
Class. The order is likely to be executed within next one and half year. With this order, the company’s
order book stands around Rs.860 crore as on date.
BHEL commissions Unit-4 of Teesta Low Dam hydro power project (Rs.137, +0.7%)
State-run BHEL said it has commissioned the fourth and last unit of the 4x40 MW Teesta Low Dam Hydro
Electric Project (HEP) Stage-IV in West Bengal. A run-of-the-river greenfield project located in Darjeeling
district of West Bengal, Teesta HEP has been set up by NHPC Ltd, on the River Teesta, BHEL said in a
release. According to the statement, power generation from the Teesta project will result in reduction of
green-house gas emissions and will help in achieving a low carbon development path for the state as well
as the nation. BHEL was entrusted with the Electrical & Mechanical (E&M) works for four units of 40 MW
each by NHPC Limited. BHEL's scope of work in the project comprised design, manufacture, supply,
installation and commissioning of complete E&M equipment including vertical shaft Kaplan Turbines and
matching generators. The equipment was supplied by BHEL units at Bhopal, Jhansi, Rudrapur & Bengaluru
and the execution of work on site was carried out by the company's Power Sector Eastern Region. BHEL is
presently executing Hydro Electric Projects of around 3,300 MW in the country which are under various
stage of implementation. Other projects of NHPC currently under execution by BHEL are the 4x200 MW
Parbati HEP Stage-II and 3x110 MW Kishanganga HEP. In West Bengal, BHEL is also executing the 3x40
MW Rammam Stage-III hydro-electric project of NTPC. Significantly, more than 500 hydro generating sets
with a cumulative capacity of more than 29,000 MW of various ratings have been contracted on BHEL in
India and abroad. Of this, equipment for about 5,700 MW generating capacity has been contracted
outside India.
Patel Engineering bags Rs.2,500 cr arbitration award (Rs.65, +20%)
Construction company Patel Engineering has won arbitration awards of over Rs.2,500-crore and expects
its debt to halve on Cabinet's decision to revive construction sector. The company's total standalone debt
as on Mar 31, 2016 stood at nearly Rs.4,535 crore. "Patel Engineering has won arbitration awards in
excess of Rs.2,500 crore. With the recent Cabinet decision, the company will get 75% of this amount
immediately which will be utilised to retire debt," the company said in a BSE filing. Further, claims
approximating to Rs.5,000 crore are in the arbitration process and are expected to be monetised within
next 12 to 18 months based on the Cabinet decision, it said adding the same will be utilised to reduce the
debt even further. Managing Director, Patel Engineering, Rupen Patel, said, "The Cabinet's decision on
payment of arbitration awards to infrastructure companies will support construction companies to infuse
liquidity into the stressed and help create more jobs." He said, "We will shortly be able to reduce the debt
by 55-60% and even further within the next 12-18 months. This additional liquidity with the help the
company to strengthen its balance sheet and enable to participate in large infrastructure projects." Patel
Engineering is an integrated construction company specializing in hydro-power generation, irrigation and
urban infrastructure projects. It has executed projects across Arabian Gulf, Sri Lanka, Nepal and Bhutan.
Seeking to revive construction and real estate sectors, the Cabinet on Aug 31, approved an array of
measures including easing of rules for quicker settlement of disputes, pump in liquidity and reinvigorate
stalled projects. It allows transfer of cases initiated under the old Arbitration Act to the new and
7
expeditious dispute resolution law, approved release of 75 per cent of the amount in dispute against bank
guarantee and provided for a conciliation board comprising of independent domain experts in new
contracts.
DCB Bank launches mobile payment service for retail outlets (Rs.116, -2%)
Private sector DCB Bank announced the launch of a mobile based payment solution, mVisa, for easier
retail payment. "mVisa, a mobile-based payment solution will make payments at retail outlets much
easier. Customers can pay now through their smart phones by scanning the unique Quick Response (QR)
code at the retail outlet," DCB Bank said in a release. mVisa is a card less mobile payment solution that
offers customers the convenience of doing digital payments at retail outlets, it added.
Sugar price stable; will sell at Rs 35.50/kg: Balrampur Chini (Rs.103, -2%)
Acting to curb the rise in sugar prices, the Food ministry has put a cap on stocking sugar for the coming
two months. While mills can hold 37% till September end, only 24% of total sugar available for 2015-16
season can be stored by Oct end. The government's decision will affect companies who have held stock in
godown, said Vivek Saraogi, MD of Balrampur Chini Mills, adding, the company will support the
government's circular on stock limit. Sugar price is currently stable and Balrampur Chini is likely to sell
sugar at Rs.35.50 per kg going forward, he told media.
Product mix driving margins; eye 15% revenue by FY19: Parag Milk (Rs.340, +0.01%)
While the quarterly results might fluctuate, Parag Milk Foods is confident of achieving 15% revenue
growth over next three years. Speaking to media, Bharat Kedia, CFO of the company said the mix of value
added products is driving earnings before interest, tax, depreciation & amortization (EBITDA) margin
expansion. The company reported a 54% increase in net profit at Rs.10.81 crore in the first quarter as
against Rs.7.20 crore in year-ago period while the total income from operations rose to Rs.383.46 crore.
The company has been upgrading its production facility of whey, which is its second highest product after
‘Pride of Cows’. Kedia expects the fresh milk business to continue to grow strongly.
Reliance Infra hails Cabinet move to revive construction sector (Rs.615, +5%)
Reliance Infrastructure (RInfra), which has over Rs.14,000 crore under advanced stages of arbitration for
various projects, hailed the Cabinet's decision to revive construction sector, terming it a "landmark
initiative". An array of measures approved by the Cabinet Committee on Economic Affairs (CCEA),
including easing of rules for quicker settlement of disputes, pump in liquidity and reinvigorate stalled
projects, will revive the sector, the infrastructure major said in a statement. "This landmark initiative by
the CCEA will boost the stressed infrastructure sector and also help infuse much required liquidity in the
system. It is a very positive and bold move by the government to help revive the stalled projects which
suffer due to long settlement periods," Lalit Jalan, CEO, Reliance Infrastructure, said. The statement said
Reliance Infrastructure has already won arbitration awards for two road projects of Rs.170 crore. "In
addition, over Rs.14,000 crore are under advanced stages of arbitration for various projects," it said. Jalan
said the CCEA has created an enabling framework for government agencies / PSUs to release 75% of
arbitration award to concessionaires / contractors, without worrying about subsequent scrutiny. He also
lauded government's initiative of allowing the disputing parties to migrate to new Act even if arbitration
was initiated prior to enactment of amended Arbitration Act of 2015. RInfra said the CCEA decision will
ensure that projects are not stranded due to long arbitration disputes between concessionaire /
contractor and government agencies and lack of funds. Under the new scheme of arrangement, all
8
PSUs/Departments may consider setting up Conciliation Committees comprising independent experts to
ensure speedy disposal of pending or new cases. Reliance Infrastructure is one of the largest
infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several
high growth sectors such as power, roads and Metro Rail in the infrastructure space and the defence
sector.
Cipla gets USFDA nod for overactive bladder treating drug (Rs.578, +0.04%)
Pharma major Cipla said it has received final approval for its Abbreviated New Drug Application (ANDA)
for Darifenacin extended-release tablets from the United States Food and Drug Administration (USFDA).
"We have received final approval for ANDA for Darifenacin extended-release tablets, 7.5 mg and 15mg,
from USFDA," a company statement said. Darifenacin extended-release tablets are AB-rated generic
equivalents of Allergan's Enablex tablets, 7.5 mg and 15 mg, and are a muscarinic antagonist indicated for
the treatment of overactive bladder with symptoms of urge urinary incontinence, urgency and frequency.
The product will be launched immediately, the release said. Enablex tablets and generic equivalents had
US sales of approximately USD 85 mn for the 12 month period ending Jun 2016, according to IMS Health.
Cadila up on EIR report from USFDA for Ahmedabad SEZ unit (Rs.385, +2%)
Cadila Healthcare shares surged Fri after oral solid dosage drug facility in Gujarat received establishment
inspection report from the US health regulator. "Oral solid dosage drug manufacturing plant located at
SEZ, Ahmedabad has received an establishment inspection report (EIR) from the USFDA," the pharma
company said in its filing. The US health regulator had carried out inspection of this facility in Jan 2016.
Cadila said the receipt of EIR indicated the successful closure of the inspection points (483s) raised. This
plant is a separate manufacturing unit and does not form a part of the Moraiya formulations
manufacturing facility. With this, the company received EIR for three facilities so far during the current
quarter, including Moraiya plant that had received a warning letter in Dec 2015. At the same time,
Ahmedabad API facility (Zyfine) also had a warning letter from the USFDA. However, in Jul, Moraiya
facility received an establishment inspection report from the USFDA, which only indicated closure of the
inspection points (483s) raised based on the inspection carried out between Aug 28, 2014 and Sept 05,
2014. "It does not in itself indicate resolution of the warning letter, though this is a positive step towards
the resolution of the warning letter issued by the USFDA," Cadila had said in its filing on Jul 8. Its Topical
manufacturing facility located at Changodar, Ahmedabad also received EIR, in Aug, following the
inspection in Mar 2016. This plant is a dedicated facility for manufacturing ointments and does not form a
part of the Moraiya formulations manufacturing plant.
Jet launches in-flight mobile entertainment streaming (Rs.534, -1%)
Jet Airways launched an in-flight entertainment service under the 'JetScreen' label that allows fliers to
stream 220 hours of digital content on smartphones, tablets or laptops for free. The airline claims the
service is a first in the industry for domestic carriers and comes close on the heels of the civil aviation
ministry hinting at allowing onboard wi-fi access. "As of today, JetScreen is live on six of our 75 narrow-
body aircraft, and we hope to introduce the facility on all our planes (narrow-body) by March. These
facilities are available on two of our Delhi-Mumbai flights, apart from one each on the Delhi-Bangkok and
Delhi-Lucknow sectors and two in the Southern sectors," Jet senior vice-president for sales & marketing,
Colin Neubronner, told. It can be noted that Vistara had such a facility in the beginning on one of its
planes. But it was offering this using their own devices. Earlier, the now-grounded Kingfisher Airlines was
the first to offer onboard entertainment on fixed screens on the domestic flights. It was later emulated by
9
national carrier Air India but discontinued for long now, though the screens are still on the planes.
Without disclosing the quantum of investment, Neubronner said the company has invested heavily into
the service by way of hardware and content licensing but will not charge the passengers for using the
facility. "It's part of our service and delivers on our commitment to offer enhanced full-service experience
to our guests," he quipped and said the airline has no immediate plans to monetise it. JetScreen uses an
onboard wireless streaming technology, licensed from the American company Global Eagle
Entertainment, which is a global leader in media content and offers 220 hours of media library including
movies, television shows, music and games apart from a special offering for the kids under the JetKids
label, he said. Neubronner said the initial focus is on domestic flights as the airline already offers in-flight
entertainment on fixed screens on its international flights using the wide-body planes, except on the short
haul sectors like the Saarc and Gulf region, where the airline deploys narrow-body aircraft. All that a
passenger has to do is download the 'Airtime Player' app, available for free in all major App stores, on
their Wi-Fi enabled personal devices to access the full content while some of the content do not need
even this, he said. When asked about how soon the airline can offer onboard broadband-enabled Wi-Fi
connectivity, Neubronner said it depends on when the government will allow such an offering.
MOIL increases prices of ferro-grade manganese ore, fines (Rs.270, 8%)
MOIL has increased prices of ferro grades of manganese ore and all grades of fines by 15-25%, reports
media. The company, a Miniratna state-owned manganese-ore mining company headquartered in
Nagpur, India has a market share of 50%. MOIL has confirmed to media that prices of ferro grades of ore
with manganese content at 45% and above has been increased by 25% and that with less than 45% has
been raised by 20%. Price of all grades of fines and ore of all chemical grades have been increased by 15%.
Expect 5-7 mn tonnes sugar deficit next year: Shree Renuka (Rs.16, -3%)
After two years of sugar surplus that brought down prices in India, expect a deficit of 5-7 mn tonnes next
year, says Narendra Murkumbi, Co-founder, Vice Chairman and Managing Director Of Shree Renuka
Sugars. Abinash Verma, DG, ISMA, is of the opinion that there is enough sugar in the country. He says a
surplus of 7.3 mn tonnes will be carried forward to the next year and with an expectation of around 23
mn tonnes output next year, there will be a total of around 30 mn tonnes of sugar stock in the country.
India's consumption is going to be around 26 mn tonnes in 2017, he says. The demand for now is on par
with the supply in the country, says Verma. This has brought the sugar price to around Rs.34-35 per kg.
With production costs at Rs.33 per KG, Verma feels that sugar companies are finally getting good margins
on their output. Thus, speculators are heavily long on sugar, and markets have also factored a deficit in
supply. The government has come out with some measures to impose stock limit even as sugar mills deny
allegations of hoarding. But Vivek Saraogi, Managing Director of Balrampur Chini Mills, says that 80% of
India's sugar mills at this time of the year won't have much surplus. Only 15-20% would have stock above
37% of output. And, Vivek adds that with the festive season right around the corner, selling the surplus
will not be a problem as demand may go up.
Delays in ramp-ups should get done in one or 2 months: Mindtree (Rs.550, -1%)
Mindtree has cut its second quarter guidance. Margins is believed to be lower than planned and EBITDA
margins are expected to fall as well. Savings from initiatives are not enough to offset slow income and a
slower revenue momentum in H1 FY17 will delay margins, it said. The reasons for the guidance cut was
cross currency movement, project cancellations and slower ramp-ups in a few large clients. Speaking to
media, Rostow Ravanan, MD & CEO, Mindtree said that margins will be lower than planned. However, he
10
did say that the confidence in its clients is strong. He maintained that the delays in ramp-ups should get
over in one or two months and the second half of the year should be stronger for Mindtree. “Given the
fact that there are revenue uncertainty, we are looking at the cost, other forms of discretionary costs.” On
project cancellations, he said that one or two clients have been cancelling or delaying decisions owing to
macros issues. He maintained that the deal pipeline was strongest.
Dr Reddy's launches generic anti-depressant drug in US (Rs.3123, +1%)
Dr Reddy's Laboratories said it has launched Bupropion extended release tablets, an anti-depressant, in
the US market. The company has launched the drug in strengths of 100 mg, 150 mg and 200 mg, Dr
Reddy's Laboratories said in a regulatory filing. The company's product is generic version of GSK's
Wellbutrin SR. According to IMS Health, Wellbutrin SR brand and generics had US sales of around USD
109.6 mn for 12 months ended Jul 2016. Dr Reddy's Buproprion SR tablets are available in 100 mg, 150 mg
and 200 mg in bottle count sizes of 60, 100 and 500, it said. Wellbutrin SR is a registered tardemark of GSK
group of companies.
Infosys enters into JV with Saudi Prerogative Company (Rs.1031, -1%)
Infosys said it has entered into a joint venture agreement with Saudi Prerogative Company (SPC) for IT
services in Saudi Arabia. Infosys will hold 70% interest in the joint venture while SPC will have the
remaining 30%, the company said in a regulatory filing. The pact is subject to approval of Saudi Arabian
General Investment Authority.
Allahabad Bank to raise Rs.500 cr by issuing equity shares (Rs.85, +3%)
State-run Allahabad Bank is looking to raise up to Rs.500 crore by issuance of equity shares to qualified
institutional buyers (QIBs). "The bank has planned to access capital market for raising capital up to the
extent of Rs.500 crore by issuing equity shares by way of Qualified Institutions Placement (QIP) basis in
one or more tranches," Allahabad Bank said in a BSE filing. The bank will seek nod of its Board of Directors
at the extraordinary general meeting scheduled Sept 28. Allahabad Bank said it will create, offer and issue
shares of face value of Rs.10 each for cash at an issue price including premium to QIBs on QIP in such a
manner so that government will continue to hold not less than 52% of the paid-up equity capital of the
bank. Further, it said the allotment of equity shares to QIBs will be completed within 12 months from the
date of the passage of the resolution. The state owned lender also said that its plans to raising Rs.500
crore through QIP, the approval of which was received at the EGM held on Mar 10, 2015 could not
materialise owing to unfavourable market conditions.
Aurobindo plans to launch 19 drugs in US in next 3 quarters (Rs.779, +1%)
Homegrown pharmaceuticals firm Aurobindo Pharma expects to launch 19 approved products that have
an addressable market of USD 6.8 bn in the US in the next three quarters. "We have 19 product families
that are approved, that will be launched over the next three quarters and that is for approvals that we
have on hand today," Aurobindo Pharma USA CEO Robert Cunard told. He further said the company has
another 22 targeted "action dates through the end of the fiscal year" although it does not "anticipate all
those will be final approvals but a significant number will be". In terms of the potential of the product
pipeline, Cunard said: "And of that 19 product families today, the addressable market is about USD 6.8 bn
as per IMS Jun data." While a large portion of that is Esomeprazole, still "a lot of breadth remains in that
pipeline and we think that accelerates through the balance of the fiscal year", he added. Cunard said
Aurobindo is trying to focus and ensure maintainers of service levels, introduce the products and get the
11
most out of the launches. In terms of preparedness on the manufacturing side, he said although the
company had "some catching up to do as far as validation and manufacturing" is concerned , it is "in a
good position with that now, the facilities have been able to step up and we are in a good position to
launch those over the next three quarters." Commenting on the over the counter (OTC) segment in the
US, Aurobindo Pharma MD N Govindarajan said the company expects a spurt in growth in the second half
of 2017-18. "Right now, it (OTC) is still less than USD 10 mn in terms of the current sale...As you would
appreciate the fact that at the end of the day you need to have a critical mass in terms of the market
before you really grow in this business," he said. "As far as products (are concerned), we have 20 products
in the (US) market under OTC segment," he added.
12
Information of Bulk Deals – 2nd Sept 2016 on BSE
Scrip name Name of Client BUY (B) / SELL (S)
Quantity Shares
Trade Price/ W Avg. Price
Advenzymes Kotak India Venture Fund I S 4,02,200 1,385.42
Aryacapm La Mancha Resorts Private Limited S 1,70,000 15.05
Aryacapm Pankaj Piyush Trade And Investment Ltd B 60,000 15
Aryacapm Santosh Devi Bansal B 1,00,000 15.15
Aryaman Ashok Kumar Bansal B 72,500 20.6
Aryaman Kusum Bansal B 66,000 20.6
Aryaman La Mancha Resorts Private Limited S 3,77,500 20.6
Aryaman Sunil Kumar B 70,000 20.6
Aryaman Usha Sharma B 75,000 20.6
Aryaman Vishal Sharma B 97,000 20.6
Atharvent Sangeeta Suresh Kadam S 14,06,654 2.26
Bnrsec Sharda Lahoti B 30,000 21.46
Bnrsec Veena Govindnarayan Mundra S 30,000 21.45
Gennex Manphool Exports Limited S 10,79,580 7
Krishfab Wonder Vincom Pvt.Ltd. S 33,244 41.24
Margproin Abhay Gupta S 30,003 8.92
Margproin Harsha Hitesh Javeri B 30,000 8.92
Nkind Manojbhai Bhupatbhai Vadodaria S 56,700 42.42
Nkind Nkpl Realty Llp B 54,863 42.41
Pankajpiyus Gurram Rama Krishna B 5,181 48.23
Saboosod Dipak Kanayalal Shah B 1,00,000 10.3
Saboosod Nawa Hotels And Resorts Pvt Ltd S 1,00,090 10.11
Sangfroid Vishnuprasad Somabhai Patel S 44,729 1.29
Scanpgeom Karnavati Infrastructure Projects Ltd S 2,00,000 19.6
Scanpgeom Rajesh Chandubhai Thakkar B 2,00,000 19.6
Scanpgeom Sourabh Hemraj Bora Huf S 1,50,000 20.3
Sctl Amrapali Capital And Finance Services Limited S 1,00,000 24.35
Sctl Sword Edge Commercials Ltd B 88,000 24.37
Shalpro Kalpesh Dineshbhai Patel B 50,00,000 0.48
Supremetex Gautam Gupta S 4,19,525 10.93
Suryala Kishan Gopal Mohta B 24,118 170.78
Triturbine Franklin Templeton Mutualfund Franklin Indiasmallercompanies Fund
B 20,96,339 125
Triturbine Natwest Bk Plc As Trustee Of The Jupiter India Fnd B 37,60,000 125
Triturbine Rati Sawhney S 75,00,000 125
Information Of Bulk Deals – 2nd Sept 2016 On NSE
Scrip name Name of Client BUY (B) / SELL (S)
Quantity Shares
Trade Price/ W Avg. Price
Advanced Enzyme Tch Ltd Kotak India Venture Fund I S 115000 1386.61
13
Cholamandlm In & Fin Co Dynasty Acquisition (Fdi) Ltd S 2722841 1100.54
Emco Limited Visa Capital Partners B 583974 32.89
Hotel Rugby Ltd Parshotam Ramji Sojitra Huf B 89356 8.05
Mbl Infrastructures Ltd Sks Fincap Pvt Ltd S 500000 62.75
Nk Industries Ltd Nkpl Realty Llp B 50070 42.5
Nk Industries Ltd Vadodaria Bhupatbhai Manojbhai S 50000 42.5
Shrenuj & Co. Ltd-Depo Sivaramakrishnan S 1005000 2.05
Supreme Tex Mart Ltd Goldleaf International Pvt. Ltd. S 500000 10.95
Visagar Polytex Ltd Sanjay Kumar Kuthadi B 2499000 2.13
14
Snapshot of BULK DEALS in the previous week Scrip name Name of Client BUY (B) /
SELL (S) Quantity
Shares Trade Price/ W Avg. Price
Bodhtree Anita Soni B 5,00,000 28
Bodhtree Bodhtree Solutions S 5,00,000 28
Chlogist Adroit Tradelink Private Limited S 5,00,000 20.85
Chlogist El Dorado Biotech Pvt Ltd B 5,00,000 20.85
Ndtv Lts Investment Fund Ltd B 62,85,000 81
Ndtv Oswal Greentech Ltd. S 62,85,000 81
Nirvikara Paper Mills Ltd Honey Bricks Property Management Pvt Ltd B 69366 49.59
Aegislog Infrastructure India Holdings Fund Llc S 40,00,000 126.26
Kalpatpowr Hsbc Global Investment Fu Nds Mauritius Ltd S 32,60,000 258
Kalpatpowr Hsbc Global Investment Funds Indian Equity B 32,60,000 258
Ht Media Limited Ftmf A/C Franklin Tempelton Prima Plus B 4150542 80
Ht Media Limited Stichting Depositry Apg Emergng Mrkts Eq Pool S 4171860 80
J.Kumar Infraprojects Lim Hdfc Standard Life Insurance Company Ltd S 610030 172.53
Nirvikara Paper Mills Ltd Porinju V. Veliyath B 150000 56.99
Nirvikara Paper Mills Ltd Shah Vinod Maganlal S 173500 57.04
Rblbank Tvs Shriram Growth Fund S 26,37,611 289.57
Virinchi Shilpa Porinju Veliyath B 1,01,000 59.65
Axis Bank Limited Goldman Sachs Singapore Pte S 13216676 596.6
Axis Bank Limited Integrated Core Strategies (Asia) Pte.Ltd. S 16839770 596.87
Axis Bank Limited Ishares India Index Mauritius Company B 12012514 596.65
Gati Limited Coastal Fertilisers Limited B 675000 139.58
Gati Limited Jm Financial Products Pvt Ltd S 920000 139.94
Mandhana Indus. Ltd Stci Finance Limited S 520000 114.37
Rbl Bank Limited Emerging India Fund S 2250000 274.89
Rbl Bank Limited Merrill Lynch Markets Singapore Pte Ltd B 2175000 279.27
Rbl Bank Limited Nomura India Investment Fund Mother Fund B 2378129 292.68
Sical Logistics Limited Gagandeep Credit Capital Pvt. Ltd. B 2148336 155
Sical Logistics Limited Ranford Investments Limited S 2152158 155
Supreme Tex Mart Ltd Goldleaf International Pvt. Ltd. S 1050000 10.15
Visagar Polytex Ltd Greatscope Traders Private Limited S 4990748 2.05
Yes Bank Limited Goldman Sachs Singapore Pte S 2116655 1365.38
Yes Bank Limited Integrated Core Strategies (Asia) Pte.Ltd. S 3213747 1365.88
Yes Bank Limited Ishares India Index Mauritius Company B 2368359 1365.6
Aegislog Infrastructure India Holdings Fund Llc S 75,00,000 130.03
Aegislog Motilal Oswal Asset Mgmt Co Ltd Ac Pms Ntdo B 40,00,000 130
Ndtv Eriska Investment Fund Ltd B 28,51,894 86
Ndtv Oswal Greentech Ltd. S 28,51,894 86
Shaily Dsp Blackrock Alternatv Invnt Fund Category Iii B 78,585 514.98
Shaily Swati Sanjay Shah S 80,000 515.02
Voltamp Icici Prudential Mutual Fund S 6,59,537 775
Voltamp Reliance Mutual Fund B 6,59,200 775
Ghcl Limited Bhoomi Disc. Family Trust S 1250000 257.37
Ghcl Limited Franklin Templeton Mutual Fund B 1174893 257.4
Welspun India Limited Wasatch Emerging Markets Small Cap Fund B 6362881 50.89
15
Disclosures Under SEBI (Prohibition Of Insider Trading) Regulations, 2015
Company Name Name of Acquirer / Seller Securities Held pre Transaction
Securities Acquired / Disposed Number Value Transaction Type
Securities held post Transaction
Period
Arvind Ltd. Pragna Pranav Dave 3500 (-) 6,500 2023450 Acquisition 10000 (-) 31/08/2016
Diamines & Chemicals Ltd. G S Venkatechalam 2269 (0.02) 2,000 Acquisition (0.04) 30/08/2016
Diamines & Chemicals Ltd. G S Venkatechalam 4269 (0.04) 475 Acquisition (0.04) 31/08/2016
Dr.Reddy's Laboratories Ltd. Satish Reddy Kallam 1205832 (0.73) 7,46,500 231.27 Cr Pledge 1205832 (0.73) 01/09/2016
Infosys Ltd. G Geetha 78836 (-) 500 522000 Disposal 78336 (-) 31/08/2016
Mrf Ltd. Dr George K Philips 41 (-) 41 1517000 Disposal (-) 29/08/2016
Piramal Enterprises Ltd. Jatin Lal 1050 (-) 1,050 1940062.92 Disposal (-) 31/08/2016
Jaykay Enterprises Ltd. Sushila Devi Singhania 3495000 (9.41) -71,000 352272 Disposal 3424000 (9.22) 29/08/2016
Jaykay Enterprises Ltd. Sushila Devi Singhania 3424000 (9.22) -71,056 352637 Disposal 3352944 (9.02) 30/08/2016
Jaykay Enterprises Ltd. Sushila Devi Singhania 3352944 (9.02) -1,28,944 620362 Disposal 3224000 (8.68) 30/08/2016
Hindalco Industries Ltd. D Bhattacharya 138265 (-) 1,38,265 22051029.25 Disposal (-) 01/09/2016
Hindalco Industries Ltd. Srabonee Bhattacharya 2000 (-) 2,000 319200 Disposal (-) 01/09/2016
Mahindra & Mahindra Ltd. Sudha Keshub Mahindra Jointly With Mr Chetan Girish Varde
213332 (0.03) 40,000 57520000 Disposal 173332 (0.02) 31/08/2016
Mahindra & Mahindra Ltd. Sudha K Mahindra Jointly With Ms Uma Malhotra
71164 (0.01) 30,000 43140000 Acquisition 101164 (0.01) 31/08/2016
Mahindra & Mahindra Ltd. Sudha K Mahindra Jointly With Ms Yuthica Mahindra
160000 (0.02) 10,000 14380000 Acquisition 170000 (0.02) 31/08/2016
Mahindra & Mahindra Ltd. Nadir B Godrej 496000 (0.08) 2,000 2885760 Acquisition 498000 (0.08) 31/08/2016
Mahindra & Mahindra Ltd. Pankaj Madan Deptardar 9325 (-) 300 434000 Disposal 9025 (-) 01/07/2016
Mahindra & Mahindra Ltd. Pankaj Madan Deptardar 9025 (-) 200 286217 Disposal 8825 (-) 30/08/2016
Mahindra & Mahindra Ltd. Pankaj Madan Deptardar 8825 (-) 400 577610 Disposal 8425 (-) 31/08/2016
Mahindra & Mahindra Ltd. Narayan Shankar 10156 (-) 2,836 4125950.75 Disposal 7320 (-) 01/09/2016
Shaily Engineering Plastics Ltd. Swati Sanjay Shah 92500 (1.11) 80,000 41200000 Disposal 12500 (0.15) 01/09/2016
Zensar Technologies Ltd. Jay Prakash Sharma 1782 (-) 1,750 1888130 Disposal 32 (-) 31/08/2016
Morarka Finance Ltd. Smriti G Morarka 70900 (1.57) 100 1008.50 Acquisition 71000 (1.57) 31/08/2016
Jetking Infotrain Ltd. Siddarth Bharwani 127792 (2.17) 1,000 54401.88 Acquisition 128792 (2.18) 30/08/2016
Precision Wires India Ltd. Ashwin Pannalal Kothari 174619 (0.75) 1,370 149881.93 Acquisition 175989 (0.76) 30/08/2016
16
Rating Scale This is a guide to the rating system used by our Institutional Research Team. Our rating system comprises of six rating categories, with a corresponding risk rating.
Risk Rating Risk Description Predictability of Earnings / Dividends; Price Volatility
Low Risk High predictability/ Low volatility
Medium Risk Moderate predictability / volatility
High Risk Low predictability/ High volatility
Total Expected Return Matrix Rating Low Risk Medium Risk High Risk
Buy Over 15 % Over 20% Over 25%
Accumulate 10 % to 15 % 15% to 20% 20% to 25%
Hold 0% to 10 % 0% to 15% 0% to 20%
Sell Negative Returns Negative Returns Negative Returns
Neutral Not Applicable Not Applicable Not Applicable
Not Rated Not Applicable Not Applicable Not Applicable
Please Note
Recommendations with “Neutral” Rating imply reversal of our earlier opinion (i.e. Book Profits / Losses).
** Indicates that the stock is illiquid With a view to combat the higher acquisition cost for illiquid stocks; we have enhanced our return criteria for such stocks by five percentage points.
“Desk Research Call” is based on the publicly available information on the companies we find interesting and are quoting at attractive valuations. While we do not claim that we have compiled information based on our meeting with the management, we have taken enough care to ensure that the content of the report is reliable. Although we have christened the report as “Desk Research Calls” (DRC), we intend to release regular updates on the company as is done in our other rated calls.
For any information or suggestion, please contact the below mentioned…
Nishita Shah ([email protected])
Sushil Financial Services Private Limited Member BSE: SEBI Regn.No. INB/F010982338 | Member NSE: SEBI Regn.No.INB/F230607435.
Office: 12, Homji Street, Fort, Mumbai 400 001. Phone +91 22 4093 6000 Fax +91 22 2266 5758
“Research Analyst – SEBI Registration No. INH000000867”
Disclaimer
This report has been furnished to you for your general information only and should not be reproduced, re-circulated, published in any media,
website or otherwise, in any form or manner, in part or as a whole, without the express consent in writing of Sushil Financial Services Private
Limited. This Research Report is meant solely for use by the original recipient to whom it is sent and is not for circulation. Any unauthorized use,
disclosure or public dissemination or copying of information (either whole or partial) contained herein is prohibited.
This Report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or
needs of individual clients. The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or
construed to be neither advice/offer for the purpose of purchase or sale of any securities mentioned herein. Past performance is not a guide for
future performance, future returns are not guaranteed. Opinions expressed herein are subject to change without notice. Investor should rely
on information/data arising out of their own investigations. Investors are advised to seek independent professional advice and arrive at an
informed trading/investment decision before executing any trades or making any investments. The price and value of the investments referred
to in this material and the income from them may go down as well as up, and investor may realize losses on any investments. This Report has
been prepared on the basis of publicly available information, internally developed data and other sources believed by us to be reliable. Sushil
17
Financial Services Private Limited or its directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the
accuracy, completeness, adequacy and reliability of such information / opinions / views. None of the directors, employees, affiliates or
representatives of company shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages/loss etc
whatsoever from the information/opinions/views contained in this Report and investors are requested to use the information contained at
their risk. We do not undertake to advise you as to any change of our views expressed in this Report.
Sushil Financial Services Private Limited (SFSPL) and its connected companies, and their respective Directors, Officers and employees or their
relative, may have a long or short position in the subject companies mentioned in the report and it may not be construed as potential conflict
of interest with respect to any recommendation and related information and opinions. Reports based on technical and derivative analysis
center on studying charts company’s price movement, outstanding positions and trading volume, as opposed to focusing on a company’s
fundamentals and, as such, may not match with a report on a company’s fundamental analysis. SFPSL has different business segments/Divisions
with independent research separated by Chinese walls catering to different set of customers having various objectives, risk profiles, investment
horizon, etc. and therefore may at times have different contrary views on stocks sector and markets. Research Report may differ between
SFSPL’s RAs on account of differences in research methodology, personal judgment and difference in time horizons for which recommendations
are made. User should keep this risk in mind and not hold - SFSPL, its employees and associates responsible for any losses, damages of any type
whatsoever.
This Report is not intended to be a complete statement or summary of the securities, market or developments referred to in this document.
SFSPL or its affiliates or employees are under no obligation to update the information. SFSPL or its affiliates or employees shall not be in any
way responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the information contained in this
report.
SFSPL or its affiliates and/or its employees may have financial interest in the subject companies. SFSPL or its affiliates and/or employees may
have 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.
SFSPL or its associates or its Research Analyst have not received any compensation or other benefits from the subject companies or third party
in connection with the research report. SFSPL/its Associates/ Research Analyst/ his Relatives may have any other material conflict of interest at
the time of publication of the research report
SFSPL/its Associates/ Research Analyst/ his Relatives have not managed or co-managed public offering of securities, have not received
compensation for investment banking or merchant banking or brokerage services, have not received any compensation for product or services
other than investment banking or merchant banking or brokerage services from the subject companies in the last twelve months.
There are no material disciplinary action that been taken by any regulatory authority impacting equity research analysis activities.
