Money Times 5th Nov

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T
VOL. XXVI No.1
Markets nervous!
A TIME COMMUNICATIONS PUBLICATION

Monday, 7 13 November 2016
S
Pages.22 Rs.18
25 going on 26!
By Sanjay R. Bhatia
Dear Reader,
Correction continued on the bourses on
the back of weak global cues. The Nifty
This issue marks the beginning of the 26th year of our journey and the
breached the psychologically important
only investment weekly to have survived on the national scene.
8500 mark during last week. The
But far from being tired, we are full of hope and energy as we plan some
markets failed to offer any resilience as
new offerings this year. And like all our products, they will live up to our
buying support remained elusive.
credo of Timely, Topical & Trusted because you, dear reader, are the
FIIs remained net sellers in the cash
centre of our focus.
segment but were seen hedging as net
buyers in the derivatives segment. DIIs
Looking forward to your continued patronage.
continued to support the markets at
lower levels and remained net buyers
Yours Truly,
during the week. The breadth of the
R. N. Gupta
market remained weak amidst high
volumes, which is a negative sign for the
Editor & Publisher
markets.
Crude oil prices remained weak and slipped below the $48 mark on the back of high inventory data. The US Federal
Reserve maintained a status quo on interest rates. On the domestic front, the GST council has agreed on the following
rate structure - 0%, 5%, 12%, 18% and 28%. The earnings season continued to disappoint.
Technically, the prevailing negative technical
conditions weighed on the market sentiment
leading to selling pressure. The Stochastic,
MACD, RSI and KST are all placed below their
respective averages on the daily and weekly
charts. Further, the Nifty is below its 50-day
SMA and 100-day SMA, which is a negative for
the market. These negative technical
conditions could lead to intermediate bouts of
selling pressure.
The prevailing positive technical conditions,
however, still hold good. The Stochastic is
placed in the oversold zone. The RSI is placed
around the oversold zone on the daily chart.
The Nifty is placed above its 200-day SMA. The
Niftys (50-100 day SMA, 50-200 day SMA and
A Time Communications Publication
100-200 day SMA) Golden Cross breakout continues to hold valid, which augurs well for the market. These positive
technical conditions could lead to buying support at lower levels.
The -DI line is placed above the ADX line and the +DI line is placed above the 38 level on the daily chart indicating that
sellers are gaining strength. The ADX line has moved above the 19 level. The market sentiment remains nervous due to
weak global cues and the US presidential elections. Fresh positive triggers are needed for the markets to bottom out.
The Nifty has failed to close above 8500, which is a negative sign. If it continues to sustain below it, then the markets
could fall further to test 8337. On the upside, if the Nifty moves above 8500, then it could test the 8621 level. 8337
remains a crucial support level. Stock-specific action is likely to be witnessed due to the earnings season.
In the meanwhile, the markets could take cues from the US presidential election results, news flow on earnings,
geopolitical events, RupeeDollar exchange rate, global markets, progress of GST implementation and crude oil prices.
Technically on the upside, the BSE Sensex faces resistance at the 27650, 28100, 28290, 28578, 29100 and 30025 levels
and seeks support at the 27131 and 26730 levels. The resistance levels for the Nifty are placed at 8500, 8621, 8727,
8848, 8968, 9047 and 9120 while its support levels are placed at 8337, 8285 and 8088.
BAZAR.COM
Samvat 2073 on a volatile path!
The Muhurat fever has cooled down as the Sensex and the Nifty turned red from the green on the auspicious day. Weak
global cues, the narrow margin race between Hillary Clinton and Donald Trump, the Tata tussle, Pakistan firing, Chinas
indifference etc all weigh heavily on the benchmarks.
The resilience, if any, in the coming
days may come from the growth
Believe it or not!
story of India, which remains intact.
Compucom Software recommended at Rs.11.88 on 17 October
Robust rainfall, superb kharif
2016 recorded a new 52-week high at Rs.22.02 last week
harvest, higher minimum support
appreciating 85% in just 3 weeks!
price for cereals and staples, GST,
Century Enka recommended at Rs.261.6 on 3 October 2016
higher advance tax collection etc.
recorded a new 52-week high at Rs.362.75 last week
are the positives that play up to
appreciating 39% in just 1 month!
control the negative elements.
Kushal Tradelink recommended at Rs.169.5 on 3 October

Mid-caps and small-caps, which
2016 recorded a new 52-week high at Rs.333 last week
were in the forefront in Samvat
2072, may retreat in the initial days
appreciating 96% in just 1 month!
of Samvat 2073. The real beauty of
Lumax Industries recommended at Rs.674.2 on 29 August
being at this spot is to be with select
2016 zoomed to Rs.989 appreciating 47% in just 2 months!
mid-cap and small-cap funds
Sarda Energy & Minerals recommended at Rs.124 on 11 July
wherein fund managers have the
2016 recorded a new 52-week high at Rs.296.6 last week
ability to find gems that have the
appreciating 139% in less than 4 months!
potential to turn leaders in future.
The best bets, according to Dr. Renu
This happens only in Money Times!
Pothen,
Research
Head
of
Fundsupermart, are Mirae Asset Emerging Bluechip Fund and SBI Magnum Mid-Cap Fund.
Samvat 2073 its volatile birth may see good inflows into mutual funds and SIPs may remain its forte. The flows this
Samvat will surpass the record inflows of Samvat 2072 and creation of new folios. The amount of allocation to these
funds depends on the investors risk profile as Mid-cap Funds tend to be more volatile in the short-term. Large-cap
Funds remain the largest investable fund category and form the core holding of any investors portfolio irrespective of
their risk profile.
In short, the guru mantra for navigating the current volatility is to adopt an asset allocated approach adapted to the
selected timeframe and risk profile. A combination of large-cap and diversified funds and debt allocation is the right
approach irrespective of where the market is.
Tata war gets murkier: With every passing day, the Tata tussle is getting murkier. Mr. Cyrus Mistry is not taking his
insinuations lying down and is hell bent on opening the can of worms. Though he was Ratan Tatas blue-eyed boy once,
he is now busy exposing his mentors lapses and faulty decision making to derive public sympathy.
The government, too, has clarified that it stands at a distance for now as this is an internal matter of a business house. It
may join the scrutiny if issues of non-governance or poor corporate governance are raised and shareholders interests
are jeopardized.
The market cap of Tata companies has been eroding every passing day and so is the groups goodwill. The 170-year old
business house is raising doubts even in the hardcore Parsi investor community.
Trumps Cleanton: The swings in Clintons and Trumps favour are being monitored every day. The last minute email
row has raised a storm for Clinton and Trump is pressing advantage. Markets the world over have turned jittery over
Trumps victory (going by his pre-poll statements) and the approach he may adopt if elected. He may have made some
weird statements but at the end, if elected, he may fine tune every word and thought. After all, Trump is a sharp
businessman and holds USAs interest uppermost. His mentality and traits may click well with those of our Prime
Minister and they may tango to mutual advantage than feared.
So lets wait for the near-term panic on Trumps arrival and enter the two most laggard segments pharma and I.T. by
buying the leaders. An US president cant be impractical. Business first, development first, progress first is the key to any
leaders popularity and Trumps trump card or Hillarys Cleanton cannot be anything but that.
TRADING ON TECHNICALS
Deeper correction ahead

By Hitendra Vasudeo
Sensex
Daily Trend
Last Close
27274
Down
Last week, the

Sensex opened
at
27966.18,
registered a high at 28029.80 and moved to a low of 27193.60 before it closed the week at 27274 and thereby showed a
net fall of 656 points on a week-to-week basis.
Weekly Chart
The support of 27400 was violated and the Sensex managed to hold the level since July 2016.
The 23.6% retracement of the rise from 22494 to 29077, which was at 27488, was violated last week on closing with a
bearish candle.
As a result of the fall with a bearish candle, a deeper correction is likely to be seen in the near-to-short term with
volatility.
The 38.2% retracement of the same rise from 22494 to 29077 is at 26561. Expect 38.2% retracement to be tested in the
near-term.
Weekly resistance is placed at 2749927804-28029. Expect the lower range of
26968-26132 for the week.
Daily Chart
On the daily chart, bull market composition
ended on 14 October 2016 at 27548 and
even the rise to 28256 could turn to the bull
market
composition.
Bull
market
composition as defined by us on the daily
chart = 21 day EMA > 34 day EMA > 55 day
EMA > 89 day EMA. The bearish market
composition has not resumed as averages
are entangled over each other and have not
witnessed a descending order of the
averages values as yet.
Currently, the overlapping of averages without ascending or descending order of averages value suggests and indicates a
market cycle correction. It could be a transition to the bear market which time only can tell.
DRV
27877
Weekly Trend
Down
WRV
27541
Monthly Trend
Up
MRV
26280
Trend based on Rate of Change

MONEY TIMES announces
(RoC)
Weekly chart:
DIWALI BONANZA OFFER 2016
1-week trend - Down
of its specialized newsletters
3-week trend - Down
For Medium-to-long-term investors:
8-week trend - Down
Offer 1: 6-month Package @ Rs.6000 v/s Rs.8000
Daily chart:
Roongtas Panchratna (Issue no. 12 & 13) (5 stocks/quarter)
1-day trend -Down
Early Bird Gains (1 stock/week)
3-day trend - Down
Offer 2: 3-month Package @ Rs.6000 v/s Rs.8000
8-day trend - Down
Roongtas Mid-Cap Twins (Issue no. 5, 6 & 7) (2 stocks/month)
BSE Mid-Cap Index
Beat the Street 6 (Issue no. 15) (6 stocks/quarter)
Trend based on RoC
For Short-term Traders & Investors: 2-month Package @ Rs.7000 v/s Rs.9000
Weekly chart:
Techno Funda Plus (3 stocks/week)
1-week trend - Down
Fresh One Buy Weekly (1 stock/week)
3-week trend - Down
For Daily Traders: 1-month Package @ Rs.5000 v/s Rs.6500
Live Market Intra-Day Calls by SMS (4-5 stocks/day)
8-week trend - Down
Fresh One Buy Daily (1 stock/day)
The BSE Mid-Cap index followed the
footsteps of the BSE Sensex as the
Take advantage of this Diwali Offer, which ends on Monday, 30 November 2016.
ROC Trend is down leading to a
To subscribe, you can deposit cheque/cash or transfer the amount via RTGS/NEFT to the
correction on the weekly chart.
company bank account:
The 23.6% retracement of the BSE
(1) Time Communications (India) Ltd - State Bank of India C/A 10043795661, Fort Market
Mid-Cap index is being tested which
Branch,
Fort, Mumbai 400 001 (IFSC: SBIN0005347) or
is at 12700. The last close was at
(2)
Time
Communications India Limited - ICICI Bank C/A 623505381145, Fort Branch, Fort,
12839. Support attempt could be
Mumbai
400 001 (IFSC: ICIC0006235)

seen
around
12700-12500.
Note: For cash deposit, kindly add Rs.50 extra for SBI or Rs.100 extra for ICICI Bank as cash
Subsequently, it could slide down to
counting charges levied by the bank.
11997.
Expect profit-booking pressure to
After transfer, please advise us by e-mail mentioning the bank & branch, electronic transfer
build on the BSE Mid-Cap index and
number and date of payment with your subscriber name and the product selected to
enable us to begin your supply immediately.
any intra-week rally must be used to
exit long positions rather than being
Contact us on 022-22616970, 22654805 or moneytimes.support@gmail.com.
stuck at higher levels. Feeling of
being left out should be removed on a
pullback and the objective should be to book profits and exit long positions till the next macro uptrend indications.
BSE Small-Cap Index
1-week trend - Down
3-week trend - Down
8-week trend - Up
A massive fall on the BSE Small-Cap index was seen in relation to the rally it has seen. The 600-700 point fall or rise is a
trend changer for the BSE Small-Cap index. Last weeks fall was of 705 points on weekly closing.
The bottom was at 9399 in March 2016 and in that week it had shown a rally of 730 points and another one on the next
occasion in the first week of July 2016 when it moved up by 606 points. First marked the reversal and second marked
the acceleration. The third which we witnessed last week was a reversal of the rally that began from 9399 to 13619.
Expect a correction unless the immediate next game changer rise of overall 600-700 points is witnessed on a weekly
closing basis.
Strategy for the week
A breakdown was witnessed below 27400 and the effect is spilled over the BSE Mid-Cap and Small-Cap indices/stocks.
Traders short on the Sensex and index can maintain a stop loss at 28256. Exit long and sell on the rise to 27499-27804
with a stop loss of 28256.
WEEKLY UP TREND STOCKS

Let the price move below Center Point or Level 2 and when it move back above Center Point or Level 2 then buy with whatever low
registered below Center Point or Level 2 as the stop loss. After buying if the price moves to Level 3 or above then look to book profits as
the opportunity arises. If the close is below Weekly Reversal Value then the trend will change from Up Trend to Down Trend. Check on
Friday after 3.pm to confirm weekly reversal of the Up Trend.
Note: SA-Strong Above, DP-Demand Point, SP- Supply Point, SA- Strong Above
Scrip
BAJAJ HOLDING
CAIRN INDIA
FORBES & COMPANY
INDUSIND BANK
MULTI COMMODITY EXCH
Last
Close
Level
1
Level
2
Center
Point
Level
3
Level
4
Relative
Strength
Weekly
Reversal
Value
Up
Trend
Date
2190.00
236.85
2396.00
1219.00
1334.85
Weak
below
2150.0
224.9
2115.0
1187.0
1248.0
Demand
point
2152.0
225.6
2168.0
1192.3
1257.2
Demand
point
2188.0
236.2
2343.0
1213.7
1325.6
Supply
point
2226.0
247.4
2571.0
1240.3
1403.3
Supply
point
2300.0
269.2
2974.0
1288.3
1549.3
69.8
66.2
64.5
61.1
60.4
2152.8
229.8
2065.8
1214.8
1314.5
23-09-16
30-09-16
21-10-16
04-11-16
04-11-16
WEEKLY DOWN TREND STOCKS

Let the price move above Center Point or Level 3 and when it move back below Center Point or Level 3 then sell with whatever high
registered above Center Point or Level 3 as the stop loss. After selling if the prices moves to Level 2 or below then look to cover short
positions as the opportunity arises. If the close is above Weekly Reversal Value then the trend will change from Down Trend to Up Trend.
Check on Friday after 3.pm to confirm weekly reversal of the Down Trend.
Scrip
Last
Close
MINDTREE
SUN PHARMACEUTICAL I
WIPRO
IDEA CELLULER
JUSTDIAL
424.95
653.00
452.45
72.05
393.75
Level
1
Level
2
Center
Point
Level
3
Level
4
Demand
point
Demand
point
Supply
point
Supply
point
Strong
above
391.8
515.7
420.1
64.2
339.2
415.8
617.7
442.3
70.0
379.2
430.6
684.3
454.4
73.7
404.6
439.8
719.7
464.6
75.8
419.2
445.4
751.0
466.5
77.4
430.0
Relative
Strength
Weekly
Reversal
Value
Down
Trend
Date
25.95
27.33
27.68
28.02
31.45
460.15
722.50
471.96
75.75
427.08
21-10-16
28-10-16
28-10-16
28-10-16
28-10-16
*Note: Up and Down Trend are based of set of moving averages as reference point to define a trend.
Close below averages is defined as down trend. Close above averages is defined as up trend. Volatility
(Up/Down) within Down Trend can happen/ Volatility (Up/Down) within Up Trend can happen. Relative
Strength (RS) is statistical indicator. Weekly Reversal is the value of the average.
EXIT LIST
Last
Close
Supply
Point
Supply
Point
Supply
Point
Strong Above
MARICO
262.80
267.94
270.05
272.16
279.00
232.1
37.81
PIDILITE INDUSTRIES
695.00
697.10
703.00
708.90
728.00
597.1
40.95
SUNDARAM CLAYTON
2863.00
3083.20
3164.50
3245.80
3509.00
1705.2
44.74
PIRAMAL ENTERPRISES
1611.00
1673.42
1699.50
1725.58
1810.00
1231.4
45.14
NAVIN FLUORINS INTER
2414.00
2460.95
2487.50
2514.05
2600.00
2011.0
46
IGARSHI MOTRS INDIA
762.00
780.01
786.50
792.99
814.00
670.0
46.01
ATUL
2173.00
2220.67
2242.50
2264.33
2335.00
1850.7
46.48
HAVELL'S INDIA
385.45
393.27
397.10
400.93
413.35
328.3
47.12
KOTAK MAHINDRA BANK
799.00
801.46
805.00
808.54
820.00
741.5
47.28
FINOLEX INDUSTRIES
442.75
445.70
449.00
452.30
463.00
389.7
47.33
S.R.F.
1704.00
1726.11
1749.00
1771.89
1846.00
1338.1
47.65
GRUH FINANCE
317.90
323.06
325.55
328.04
336.10
280.9
47.81
GRASIM INDUSTRIES
900.00
921.53
932.50
943.47
979.00
735.5
47.93
Scrip
Demand Monthly
Point
RS
VARDHMAN TEXTILES
1095.00
1112.92
1120.00
1127.08
1150.00
992.9
48.63
YES BANK
1196.40
1212.83
1224.70
1236.57
1275.00
1011.6
49.02
CHENNAI PETROL.CORP.
253.10
265.78
270.45
275.12
290.25
186.6
49.35
GABRIEL INDIA
117.60
121.04
122.60
124.16
129.20
94.6
49.4
CAPITAL FIRST LTD
660.00
675.15
683.80
692.45
720.45
528.6
49.43
J K CEMENT
857.15
895.44
909.10
922.76
967.00
663.8
49.48
GIC HOUSING FINANCE
317.35
326.67
330.95
335.23
349.10
254.1
50.06
MAHARASHTRA SCOOTERS
1813.00
1862.96
1885.50
1908.04
1981.00
1481.0
50.23
DISHMAN PHARMACEUTIC
226.75
235.12
239.85
244.58
259.90
154.9
50.52
IIFL HOLDINGS
303.65
306.46
310.00
313.54
325.00
246.5
50.62
J.B.CHEMICALS & PHAR
353.75
368.11
373.70
379.29
397.40
273.3
50.79
DCM SHRIRAM CONSOLI.
230.80
245.19
249.90
254.61
269.85
165.4
51.47
J.K. LAKSHMI CEMENT
466.65
471.43
476.50
481.57
498.00
385.4
51.51
ULTRATECH CEMENT
3851.85
3888.91
3908.65
3928.39
3992.30
3554.3
52.67
UFLEX
282.35
295.49
300.27
305.06
320.55
214.4
53.4
VIP INDUSTRIES
132.35
136.61
139.15
141.69
149.90
93.6
53.61
JSW STEEL
1589.00
1612.08
1626.00
1639.92
1685.00
1376.1
53.75
MUTHOOT FINANCE
343.80
349.33
353.23
357.12
369.75
283.2
57.82
BUY LIST
Scrip
Last Close Demand point Demand point Demand Point
Weak below
Supply Point
Monthly RS
PUNTER PICKS
Note: Positional trade and exit at stop loss or target whichever is earlier. Not an intra-day trade. A delivery based trade for a
possible time frame of 1-7 trading days. Exit at first target or above.
Note: SA-Strong Above, DP-Demand Point, SP- Supply Point, SA- Strong Above, RS- Strength
Scrip
RRML
BSE Code
Last
Close
Demand Point
Trigger
Weak
below
Supply point
Supply
point
RSStrength
539837
88.85
85.50
89.50
80.50
95.1
104.1
58.03
*Note: Up and Down Trend are based of set of moving averages as reference point to define a trend.
Close below averages is defined as down trend. Close above averages is defined as up trend. Volatility
(Up/Down) within Down Trend can happen/ Volatility (Up/Down) within Up Trend can happen.
! Note: Momentum breakout trend of stocks value(volume*close) between 10-80 lakhs.
TOWER TALK
The normal monsoon, the recent rate cut and the likelihood of retail inflation dipping to 4.5%, aided by
manufacturing PMI touching a 22-month high will definitely boost the market sentiment. Hence the current
volatility need not worry us.
Visaka Industries, manufacturer of fibre cement sheets, is expected to grow at 35% CAGR over the next few years.
The stock may appreciate about 30% in the medium-term.
NBCC (India) Ltd will incur a capex of about Rs.5000 crore to redevelop 10 railway stations, which is just part of its
redevelopment plans to convert 100 stations into world-class terminals. Buy for excellent returns.
Hyderabad-based Aurobindo Pharma has shown interest in acquiring Portuguese drug maker, Generis
Farmaceutica, for about $200 mn, which will boost its revenue. A smart buy.
Grasim Industries has posted fantastic Q2 results with 50% higher PAT since all its segments have performed well.
A good buy.
Tech Mahindra will remain in the spotlight after declaring decent numbers.
Excellent results by Maruti Suzuki India have prompted analysts to

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upgrade the stock. An excellent buy for the long-term.
Facebook
&
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at
Zensar Technologies has acquired UK-based design company
moneytimes_1991 on a daily
Foolproof which will help the Company overshoot its own digital
basis to get a view of the stock
offering targets by 30%. A big positive for the Company.
market and the happenings which
Tata Elxsi mulls acquisitions to achieve its 2020 revenue goals and
many may not be aware of.
reach its 2-year old guideline of over Rs.3000 crore. The huge cash
balances and acceleration will boost its bottom-line. The ongoing
battle within the Tata group provides an excellent opportunity to acquire this stock at reasonable valuations.
Royal Enfield (flagship company of Eicher Motors) has decided to invest Rs.600 crore in its 2-wheeler business for
FY17. A big positive for Eicher Motors. Buy and hold for two years.
Amrutanjan Health Cares ongoing expansion and diversification is expected to yield positive results. A good time
to accumulate this stock.
Premier Explosives posted a big jump in PAT on the back of healthy defence orders. Further, with the Make in
India campaign gaining speed, this Company will do better in coming quarters. An excellent buy.
Gulshan Polyols has mulled splitting its share. Its current EPS of Rs.32 merits a better pricing. Buy for sure shot
gains.
The education board has recently made changes in the education syllabus. A big opportunity awaits Navneet
Education.
The results of Take Solutions indicate another big jump in revenues. A good time to start accumulating this
stagnant stock.
Sharda Cropchem, a generic agrochemical company with about 12% holdings by Mutual Funds is reportedly faring
very well. The stock has the potential to cross Rs.550 within a year.
Godrej Industries may witness value unlocking as the Company plans to hive off Godrej Agrovet through an IPO. A
smart buy for a price target of Rs.600 within a year.
Dr. Lal Pathlabs posted an eight-fold rise in PAT as margins expanded to 30.4%. Buy for hefty gains.
Century Enka posted 66% higher PAT in Q2FY17 and 70% higher PAT in H1FY17. The stock trades at a forward
P/E of just 7.3x on FY17E earnings. It has the potential to touch Rs.540 on a P/E of 12x.
Datamatics Global Services is reportedly doing extremely well on digitisation. It may post an EPS of Rs.12 in FY17.
The stock is poised to touch Rs.125.
An Ahmedabad-based analyst recommends IOL Chemicals & Pharmaceuticals, Kushal Tradelink, LKP Finance,
Morarjee Textiles, Pudumjee Paper Products, Pudumjee Pulp & Paper Mills, TCI Finance and Ujaas Energy.
Grey market share premium for PNB Housing Finance IPO is Rs.57-59 and for Varun Beverages IPO is Re.1.
BEST BET
Butterfly Gandhimathi Appliances Ltd

(BSE Code: 517421) (CMP Rs.234.60) (FV: Rs.10)
By Amit Kumar Gupta
Butterfly Gandhimathi Appliances Ltd (BGAL) manufactures domestic kitchen and electrical appliances. It is engaged in
the manufacture of liquefied petroleum gas (LPG) stoves, mixer grinders,
table top wet grinders and pressure cookers, among others. It offers products in various categories such as kitchen
appliances, home appliances and cook and serve. Its products in the kitchen appliances category include juicers, hand
blenders, chimneys, power hobs, sandwich makers and water kettles. Its products in the home appliances category
include water heaters, electric fans, air coolers (Breeze, Desert Cooler and Ozone) and electric iron. Its products in the
cook and serve category include stainless steel such as dinner sets and cookers and non-stick appliances such as fry
pans, kadais and Omni tawas. It sells its products under the Butterfly brand and exports to UK, Mauritius, Sri Lanka,
Japan, etc.
Butterfly is a dominant brand in South India with the market contributing ~85% to the Companys revenue and south
covering 67% of its 18,000 retail touch points. BGAL, to bring in professional management, appointed Mr. Prakash Iyer
as its new CEO, who has immense experience in consumer market and has previously worked with Niligris and Reliance
Private Equity. The Company is now strongly focused on ramping up branded sales.
We believe that the Companys limited presence in the non-South market presents a humungous growth opportunity as
the branded kitchen segment is expected to post a strong double digit growth over the next three years led by a
confluence of factors like the Seventh Pay Commission, good monsoons etc.
Over the past three years, BGAL has expanded its portfolio from mere 6 products in FY11 to 20+ now. Currently, the
Butterfly brand is available through multi-brand outlets/retail touch points through 400 distributors reaching 18,000
retail touch points. It has also increased the number of stock keeping units (SKU) from 250 in 2011 to around 554
currently and it aims to expand further.
Going forward along with expanding its retail footprint, BGAL plans to aggressively explore other distribution channels
like online, modern retail and canteen stores department (CSD), which are expected to boost revenue. The management
expects the Company to achieve a turnover of Rs.1000 crore by FY20 (CAGR 17% over FY16-20).
Currently, BGALs utilisation stands at 50%. Over the next three years, the management expects the Companys branded
sales and earnings to reach Rs.1000 crore and Rs.50 crore respectively, led by improvement in gross and operating
margins. Thus, improving the margin profile will positively benefit the RoCE from the current level of 11.2% to 20% by
FY20.
Valuations: The BGAL share trades at 0.8x FY16 branded sales
Valuations:
whereas other players in this category trade at 3-4x FY16
FY13
FY14
FY15
FY16
sales. Going forward, sharpening focus on branded sales is Year to March
Diluted
EPS
(Rs.)
18.7
12.5
1.6
6.9
envisaged to enhance the Companys margin and return ratios.
Y-o-Y Growth (%)
(6.9)
(31.5) (87.4) 338.2
Technical Outlook: The Butterfly Gandhimathi Appliances Ltd
12.9
18.8
149.1
34
stock looks good on the daily chart for medium-term Diluted P/E (x)
Price/BV
(x)
2.1
1.9
1.9
1.8
investment. It has made a higher high and higher low pattern
EV/Sales
(x)
0.6
0.8
1.1
0.7
with a strong uptrend on the price while forming a saucer
6.7
10.7
15
10.3
pattern on the weekly chart and testing the neck line at Rs.210. EV/EBITDA (x)
The stock trades above all moving averages like the 200 DMA.
Start accumulating at this level of Rs.234.60 and on dips to Rs.205 for medium-to-long term investment and a possible
price target of Rs.300+ in the next 12 months.
GURU SPEAK
Has the market overreacted?
Despite being full of festivities, the stock market last week behaved with a negative bias contrary to everyones
expectations especially those who were hoping that the markets will achieve fancy targets by Diwali 2016. Speculators,
market experts and analysts were all disappointed with the market behaviour last week as it did not render any comfort
at all.
Although Samvat 2073 started on a positive note in the one hour special Muhurat trading
session, on Sunday, 30 October 2016, it fell short of expectation while closing in the negative in
the last few minutes of trading. Both the BSE Sensex and the CNX Nifty closed marginally lower.
The trend signalled a definite weakness as the Sensex slipped 11 points at 27930 followed by the
CNX Nifty which lost 12 points at 8625.70.
Post Diwali on Tuesday, 1 November 2016, too, trading was not encouraging as the Sensex lost
54 points at 27876.61 while the Nifty loss a fraction of 0.55 points to close at 8626. This
weakness in the market was attributed to weak global cues principally the US Federal interest
rate hike expected at the 2-day meet on Wednesday, 2 November 2016. However, the growth
By G. S. Roongta
prospects of the US economy are not so encouraging forcing the authorities to defer the interest
rate hike once again for the fourth time.
Big bull, Rakesh Jhunjhunwala, too, did not project any fancy target this time during his interview on Muhurat trading in
an exclusive interview with Economic Times. He was more than happy to distribute his wealth rather than multiply and
derive greater satisfaction proving to be right without using any wrong methods. But this was not bought by market
observers who believe that no one can build such huge wealth by playing straight forward and during his long career in
the stock market, he is known to have said

Mid-caps or Mad-caps?
something and done quite the opposite to mislead
the masses. However, his TV interview with Katrina
The frenzy in the stock market has begun and the
Kaif was very interesting as the big bull could be
veteran G.S. Roongta has forecast the Sensex to
seen blushing while facing the beauty queen.
touch 30,000 by December 2016 end.
On Wednesday, 2 November 2016, the Sensex
Leading the charge will be the Mid-caps that are
drifted 349.33 points to close at 27527.22 while the
likely to outperform the large-caps or index
CNX Nifty lost 112.25 points at 8514 thus proving
stocks. Another forecast made by Mr. G.S. Roongta.
the technical experts right this time. Although they
To encash this opportunity, Money Times will
were well off-the-mark in forecasting the Nifty
launch Roongtas Mid-cap Twins comprising two
touching 8400 or 8600 two weeks back!
mid-cap recommendation every month beginning
Thus, the market is at the crossroads and it is crucial
with 1st August 2016.
for analysts and market experts to issue firm
guidelines whether it is up or down. The reason
Attractively priced at Rs.2000 per month,
cited for the market weakness was the global fear
Rs.11000 half yearly and Rs.20,000 annually,
about the US presidential election between Donald
Roongtas Mid-cap Twins will be available both as
Trump and Hillary Clinton. This was because Clinton
print edition or online delivery.
was leading by a large 9 points in the US opinion
Latest edition of Mid-Cap Twins was released on
polls but Trump seems to have closed the gap and
1st November 2016
overtaken her by 1 point last week after the expose
of Hillarys emails by Wikileaks. This exposure sent
Please book your subscription
the volatility index (a measure of traders
expectations in the near-term) soaring from 6.8% to 16.8% on Wednesday, 2 November 2016.
Fearing Trumps victory, FIIs dumped equities globally. In India, they have been net sellers for the previous week and
continued to be so last week: On 25th October, net sell of Rs.505 crore; 26th October, net sell of Rs.1513 crore; 27th
October, net sell of Rs.1109 crore; 30th October, net sell of Rs.868 crore; and on 1st November, net sell of Rs.96 crore.
Since FIIs are the market leaders and influence the market sentiment, their continuous sell position over the last 14 days
totalling approximately Rs.10000 crore made investors cautious as they dont dare to face them in the contrary position.
Events will, however, prove whether their sell position was justified or not. Was it because of the fears set in by Trumps
likely victory or was a pure investment decision to book profit at higher levels and re-enter the market with greater
force after the presidential election? This will be revealed only by end of this week.
On the domestic front, the feud between Ratan Tata and Cyrus Mistry continues to worry investors as the clean image of
the Tata group stands sullied. Only further revelations and court proceeding will be able to establish whether Mistry was
right in trying to deleverage the group or he had truly strayed and needed to be replaced.
On Thursday, 3 November 2016, the market closed in the red after moving up and down by 50 to 75 points in intra-day
trades. The BSE Sensex lost 97 points in the last half an hour to close at 27430 while the CNX Nifty shed 29 points and
broke its strong support levels of 8500 to close at 8485. This is indeed a danger level to take a decision on the stock
market as its stands corrected by over 1500 Sensex points without any specific worries about the broad Indian
economy. One must, therefore, remain cautious till Wednesday, 9 November 2016, when the results of the US
presidential elections are announced.
The BSE Sensex on Friday, 4 November 2016, closed lower by 156 points with the CNX Nifty hitting 8434 - the most
comfortable level at which technical experts were eyeing since the past two months.
The market has hit the low levels of 8 July 2016, which according to me was not warranted at all. Investors must take
advantage of such an opportunity where risk stands at 10% but the reward may be in multiples going forward.
Mid-cap and small-cap stocks, too, have corrected enough and hence selective buying is recommended in sectors like
cement, sugar, fertilisers, capital goods, steel, engineering and chemical for fancy returns from hereon because
fundamentals are strong and cannot be overlooked.
No one knows why the market drifted so low during the week despite several positive factors as far as fundamentals are
concerned (i) PMI (Purchasing Managers Index) hit a 22-month high; (ii) Automobile sales jumped significantly over
the last fiscal; (iii) Food credits rose 3.2% in March-Sept 2016 (10.8% in September alone v/s 8.6% in September 2015);
(iv) Corporate results of nearly 600 companies have shown a significant rise (Y-o-Y as well as Q-o-Q) on an average; (v)
The terms and conditions of the GST Bill have been finalised w.e.f. from FY17; (vi) Banking reforms are in progress to
make finance more effective and transparent; (vii) Monsoon proved to be bountiful and therefore crop is going to be at
all-time high; and (viii) Home loans have become cheaper and so has bank interest which is 1.25% lower compared to
last fiscal. What else is needed to boost the market further? Such a correction of over 1500 points without any reason is
surely confusing and utterly baseless.
However, worries of US presidential elections and the US Federal rate hike next month or next year is natural and has
been discounted in the current market prices. According to me, it is purely a technical correction or profit-booking
before making a fresh commitment to make the market healthier and stronger to sustain higher levels going forward.
This is the best opportunity for investors in general and for people who have enough liquidity in hand.
Stocks recommended last week:
1) Ganesha Ecosphere rose from Rs.220 to Rs.229.75
2) Andhra Sugars rose from Rs.235 to Rs.262.50
3) Century Textiles & Industries made a new all-time high of Rs.1037.25 from Rs.909
Mid-Cap Twins: The stocks recommended staged recovery despite the market losing momentum throughout the week.
Both the stocks have immense potential and their values are likely to shoot up when the market regains its strength. It is
still not late to take a position in these stocks for decent gains.
Conclusion: The market is in a short-term downtrend and is likely to bounce back suddenly. Investors must keep
patience.
STOCK SCAN
Zenith Fibres Ltd: Hidden gem
(BSE Code: 514266) (CMP: Rs.192) (FV: Rs.10)

By Archana Jain
Incorporated in 1989, Zenith Fibres Ltd (ZFL) was promoted by Kolkata-based multi-crore conglomerate - Aaekay
Rungta group, the only company in India that manufactures the entire range of Polypropylene Staple Fibre (PPSF)
ranging from very fine to coarse denier. The Company is also involved in the marketing of PP Spun and Dref-2 Yarn. Its
products are well established both in the domestic and export markets.
Capacity: The Company has set up a state-of-the-art manufacturing plant at Tundav Village near Baroda to manufacture
PPSF. It enhanced its production capacity from 1,000 TPA in 1996 to the current level of 8,400 TPA.
Market: Growing industries such as automobile, infrastructure, construction and other related industries present a huge
market potential for PPSF. Apart from servicing domestic markets, ZFL has a significant presence in overseas markets as
well.
Products: ZFL is a leading manufacturer and Capital Structure:
(Rs.in crore)
exporter of PPSF in India. It produces 2.5-40 Particulars
FY12
FY13
FY14
FY15
FY16
denier fibre in different cut lengths in Natural Equity Share Capital
5.09
5.09
5.09
5.09
4.42
White and 4-40 denier in Dope-dyed colour fibre
Reserves & Surplus
17.83
21.25
23.87
28.33
35.89
for various applications. Its fibre cross section is
51.83
59.57
65.48
75.58
91.16
round. Fibre is mainly used in Filter Grade Fabrics, Book Value (Rs.)
Long-Term
Borrowings
0.33
0.57
0.41
0.46
0.16
Floor and Automobile Carpets, Geo-textiles,
Construction industry etc.
The demand for PPSF is growing rapidly because of its new and varied uses over traditional synthetic fibre. Among all
kinds of synthetic fibre, the share of PPSF has risen substantially.
Apolon, one of the products of the Company, is an ideal PPSF material for use in multiple areas such as spun yarn filter
fabrics, non-woven filter fabrics, geo-textiles, floor coverings and carpet backings, furnishing fabrics, blankets, wallcoverings and the construction industry.
ZFL also markets 100% Polypropylene Spun Yarn (PPSY) by spinning its PP fibre into yarns of various English counts
used in weaving good quality filter fabric. It also supplies PP Dref-2 yarn used in filtration candles.
Recent Developments: India has a large textile manufacturing base with the potential to become a leading producer
and exporter of non-woven products. The cooperation between fibre suppliers and nonwoven fibre producers is an
important factor for the growth of this industry. Unlike Europe and USA, the technical textiles industry in India is still at
a nascent stage and is widely fragmented, which leads to lower production and high cost. Investment in the latest
technology for production of non-woven products is essential for the sector to chart its own course. The growth of the
non-woven sector has a direct impact on the fibre sector, particularly PP and polyester fibre segments. However, the
10
share of polypropylene fibre (PPF) in non-woven industries in USA and Europe is higher than that of polyester while the
consumption of virgin polyester/reprocessed polyester fibre is more than PPF in India. Non-wovens are rapidly growing
in the following sectors Automobile; Hygiene products; Civil Engineering geotextiles; Filtration; Medical textiles;
Consumer products.
PP non-woven fabric is a preferred choice today owing to its superior quality over other nonwoven fabrics mainly for
manufacturing hygiene products. PP (fibre and polymer) is the primary raw material used for manufacturing non-woven
fabric. Increasing birth rate (mainly in Asia Pacific) has boosted the demand for consumer disposable products such as
baby diapers.
PP non-woven fabrics have gained market penetration for durable applications in geotextile, automotive and
construction industries mainly in countries like China and India. In addition, the growing ageing population mainly in
USA, Western Europe and Japan has spurred the demand for adult incontinence products, which is expected to boost the
demand for PP non-woven fabrics over the next couple of years. However, volatility in raw material prices coupled with
stringent regulations related to growing environmental concerns imposed on producers is expected to remain a key
challenge for the industry.
PP is one of the primary petrochemicals used for a variety of applications across numerous end-user industries and is
obtained via crude oil. The industry has now shifted its focus towards developing bio-based PP, which is expected to
serve as a major opportunity for market participants over the next six years.
The use of geotextiles in major infrastructure projects calls for policy guidelines, regulations and standardization, which
makes the use of PP fibre mandatory in applications where sturdy and tough fabrics are needed for particular
applications in railways, roads, etc.
PPSF manufactured by ZFL is suitable for use in non-woven carded needle felt fabrics. Currently, the Company sells 7075% of its PPF production to the non-woven sector while the rest is sold to conventional textile producers.
Financial Highlights:Equity and Reserves: The reserves of the Company Financial Highlights:
(Rs.in crore)
are 8 times its equity capital of Rs.4.42 crore.
Particulars
FY12
FY13
FY14
FY15
FY16
Sales and Profit: The Companys sales have Sales
51.79
55.98
57.47
69.21
66.80
consistently grown 10-15% with operating profit Total Expenditure
45.28
48.51
50.96
59.26
52.64
margins varying from 8-13% and net profit margins PBIDT
6.52
7.51
6.52
9.95
14.16
between 5-9% over the last 10 years. For FY16, the
Interest
0.16
0.20
0.24
0.27
0.27
Company posted a net profit of Rs.8.49 crore as
Depreciation
0.94
1.06
1.11
0.81
0.72
against Rs.5.91 crore in FY15. Its profits have
PBT
5.42
6.21
5.16
8.87
13.17
consistently risen year after year.
Tax
1.88
1.76
1.77
2.96
4.68
ZFL is a debt-free company with a lean balance sheet.
PAT
3.54
4.45
3.39
5.91
8.49
Overall, it has performed well over the last five years
EPS
(Rs.)
8
10.06
7.67
13.36
19.20
in terms of growth, profitability, return ratios and
2
2
1.5
2.5
3
cash flows from operations. It registered sales and Dividend (Rs.)
profit CAGR of 14.51% and 13.89% respectively during the last 5 years with RoE of 15.57%.
Book Value: The Companys share book value has risen to Rs.91.16 in FY16 from Rs.75.58 in FY15.
Dividend: ZFL is an investor-friendly company. It has regularly paid dividends since 13 years. For FY16, it paid a
dividend of Rs.3/share. The Company has maintained a healthy dividend payout of 19.27% of its profits.
Market Price: The ZFL stock is undervalued and ideally its stock price should be more than double the current level.
The Companys valuations look attractive with high margin of safety thereby offering a good investment opportunity for
long-term investors.
Conclusion: The general outlook for the industry is good. With ZFLs sharp focus on
Shareholding:
improving quality, developing new grades of fibre for critical as well as new
Particulars
%
applications, which cannot be replaced by polyester or other man-made fibre, the
Promoters
50.27
management is confident to see a rise in the demand for its products going forward.
General
Public
41.78
The Company continues to meet international quality standards and product
7.33
specifications. With an established production base of almost 25 years, the Company Others
NBFC
&
Mutual
Funds
0.62
is in the position to handle production and supply of quality products smoothly at
lower costs.
11
On the basis of the above coupled with attractive valuations of the Company at the current level and its debt-free status
with surplus cash reserves, we have a Buy on this stock for long-term price targets of Rs.500, 1000 and above.
SMART PICKS
Bottom picking opportunity at Nifty 8200-8300

By Rohan Nalawade
8400 is an important support level for the Nifty since a breakout was seen at this level in July 2016. The markets await
the US elections scheduled on 8 November 2016, which is likely to give a big reaction of 5% in the markets the world
over. We believe that Hillary Clinton will create history by winning the elections.
On the domestic front, Nifty above 8550-8600 will give a positive breakout of 500 points to 9200. However, Nifty below
8200-8300 is a good entry point as heavy build-up of positions is likely to occur around these levels. 8200-8300 can act
as a potential bottom for a future top. Currently, we are in the middle of a bull run and next year and the Nifty may touch
10300. We believe that the Nifty will not break the 8100 level, which is the last bottom of the bull run and a good bottom
for buying.
GST will be finalized this month and presented in the winter session of the Parliament when the Landmark Act will be
passed. Also, the Finance Minister has said that GST will be implemented from 2017. Overall, it is a positive for the
Indian economy as the countrys GDP will improve. Auto and logistics companies are likely to benefit the most by the
GST.
Among stocks, Mahindra & Mahindra, Tata Motors, Ashok Leyland, Patel Logistics and Gati look good for the longterm. Bull market is intact above 8100, which is a good opportunity to accumulate banking stocks like Axis Bank, State
Bank of India and IDFC Bank.
Can the turning points of the stock market be predicted on the basis of WD GANN Techniques? Get your answer in our
upcoming free Seminar on 12 November 2016 at Dadar, Mumbai. To know more, register on our website http://wdganncycle.com/ or contact us on 9619047123.
By Amit Kumar Gupta
STOCK WATCH
Granules India Ltd

(BSE Code: 532482) (CMP: Rs.111.75) (FV: Re.1) (TGT: Rs.175+)
Granules India Ltd (GIL) is a pharmaceutical company present across the entire pharmaceutical manufacturing value
chain, which includes active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediaries (PFIs) and
finished dosages (FDs). It operates in three segments - core business, emerging business and contract research and
manufacturing services (CRAMS). It also operates a healthcare division - Granules Consumer Healthcare (GCH). Through
an acquisition, it has access to over 10 APIs as well as intermediates in therapeutic categories such as anti-histaminic,
anti-hypertensive and anti-convulsants. Its products under its core business include Paracetamol, Ibuprofen,
Guaifenesin and Metformin. Its PFI products include Compresso PAP 97 S, Compresso PAP 90 CPC and Paracetamol
Caffeine Combo 77.4. Its FDs include Paracetamol/Acetaminophen, and Acetaminophen and Methocarbamol.
For Q2FY17, GIL reported moderate revenue growth of 3% Y-o-Y at Rs.3.64 bn as against Rs.3.53 bn. Consolidated sales
composition includes APIs (37%), PFIs (26%) and finished formulations (37%). We expect the Companys revenues to
improve going forward, led by additional revenues from the recent development of new APIs. Its multiple sclerosis
drugs have market potential of $4 bn (Rs.27,000 crore. It is likely to file ANDA with USFDA in FY17.
GILs EBITDA margin improved by 100 bps Y-o-Y to 20.4% from 19.4% on account of a fall of 450 bps in material cost to
51.5% from 56% due to change in product mix with higher revenues from high-margin finished dosage and lower
revenues from low-margin PFIs and APIs. Personnel cost grew by 120 bps Y-o-Y to 9.3% from 8.1% due to additional
manpower at the expanded PFI facility. Other expenses rose 210 bps to 18.7% from 16.6% given the rise in R&D
expenditure. Going forward, we expect the Companys margins to improve led by higher capacity utilisation, change in
product mix and commencement of Omnichem JV and commercialisation of multiple sclerosis APIs.
12
During the quarter, GILs net profit grew 26% Y-o-Y to Rs.408 mn from Rs.323 mn led by margin improvement and rise
in other income. Its depreciation was up 28% Y-o-Y to Rs.185 mn from Rs.144 mn on the back of the Gagillapur PFI
facility which went on-stream. Tax rate declined to 30.4% from 31% of PBT due to high R&D spend.
We expect the Company to report sustainable growth, driven by moving up the value chain and higher revenues from
regulated markets. We expect it to deliver superior performance due to the change in product mix, additional capacities,
margin improvement and new product launches. Further, the recent agreement with US Pharma to acquire 12.5% stake
would boost its bottom-line.
Technical Outlook: The Granules India Ltd stock looks very good on the daily chart for medium-term investment. It has
formed a likely double bottom pattern on the daily chart and short-term bottoming out can be seen with huge volumes.
Start accumulating at this level of Rs.111.75 and on dips to Rs.95 for medium-to-long-term investment and a possible
price target of Rs.175+ in the next 6 months.
*****
ITC Ltd
(BSE Code: 500875) (CMP: Rs.249.10) (FV: Re.1) (TGT: Rs.285+)

ITC Ltd is a holding company engaged in the marketing of fast moving consumer goods (FMGC). It operates through 4
segments: FMCG; Hotels; Paperboards, Paper and Packaging; and Agri business. Its FMCG products segment include
cigarettes, cigars, packaged foods (staples, snacks and meals; dairy and beverages and confections); apparel; education
and stationery products; personal care products; safety matches and agarbattis. Its Hotels segment includes hoteliering.
Its Paperboards, Paper and Packaging segment includes paperboards; paper including speciality paper and packaging
including flexibles. Its Agri business segment includes agri commodities such as soya, spices, coffee and leaf tobacco. Its
brands include Aashirvaad, Sunfeast Dark Fantasy, Bingo!, Yumitos, YiPPee!, Candyman, GumOn, Classmate, Fiama Di
Wills, Vivel, Superia, Engage, Wills Lifestyle, John Players, Mangaldeep and Aim, among others.
For Q2FY17, ITCs revenue (excluding excise duty) grew 8% Y-o-Y (+2.7% Q-o-Q) to Rs.13620 crore; cigarette business
grew 7.1% Y-o-Y to Rs.8530 crore and we estimate the volume growth to be ~4% while cigarette EBIT grew 8.4% Y-o-Y
to Rs.3220 crore. Cigarettes EBIT margin expanded by 40 bps Y-o-Y to 37.7% while non-cigarette FMCG business grew
13.3% Y-o-Y (+12% Q-o-Q) to Rs.2672 crore amidst deflationary pricing environment. EBIT loss narrowed down to
Rs.3.26 crore as against loss of Rs.11.1 crore in Q2FY16. In H1FY17, the Company launched several products such as
Aashirvaad Sugar Release Control Atta, Delishus Expressions, Fabelle, etc. Higher gestation cost for new launches and
investment in brand building has largely offset the benefit of favorable product mix and benign input cost.
ITCs hotel business during the quarter was flat at Rs.297 crore (+2.5% Y-o-Y) amidst weak demand and pricing in the
domestic market. However, profitability improved with EBIT of Rs.65 lakh v/s loss of Rs.5.54 crore in Q2FY16. Its
agriculture business grew 2% Y-o-Y to Rs.1880 crore while EBIT grew 1% Y-o-Y to Rs.297 crore. Paper business
remained flat at Rs.1330 crore due to zero duty imports under ASEAN FTA, lower cigarette volume and cheaper imports
from China. Other income grew 21.1% Y-o-Y to Rs.480 crore. EBITDA grew 8.4% Y-o-Y (-2.3% Q-o-Q) to Rs.3526 crore
and EBITDA margin marginally expanded by 2 bps Y-o-Y to 26.6% due to lower other expenses (-60 bps Y-o-Y) while it
was offset by higher COGS (cost of goods sold) including excise duty (+50 bps Y-o-Y) and employee cost (+20 bps Y-o-Y).
PAT grew 10.1% Y-o-Y (+0.2% Q-o-Q) to Rs.2385 crore while PAT margin improved by 29 bps Y-o-Y to 17.99%.
The FMCG business, re-launch of fruit juice brands and launch of dairy products augurs well for ITC. At the current level,
the ITC share trades at an attractive valuation of 26.7x and 23.8x of FY17E and FY18E EPS respectively and we believe
that the current valuation discounts the regulatory overhangs. We assign a target P/E of 26.5x on FY18E consensus
earnings to arrive at a price target of Rs.270.
Technical Outlook: The ITC Ltd stock looks
good on the daily chart for medium-term
Free 2-day trial of Live Market Intra-day Calls
investment. It has formed a downward channel
A running commentary of intra-day trading recommendations with
at the bottom of the trend. The stock tests its
buy/sell levels, targets, stop loss on your mobile every trading
strong uptrend of almost five years at Rs.215. It
day of the moth along with pre-market notes via email for
trades above all moving averages like the 200
Rs.4000 per month.
WDMA.
Contact Money Times on 022-22616970 or
Start accumulating at this level of Rs.249.10 and
moneytimes.support@gmail.com to register for a free trial
on dips to Rs.230 for medium-to-long-term
investment and a possible price target of
Rs.285+ in the next 6 months.
13
MARKET REVIEW
US elections to dictate market trends
By Devendra A Singh
Market
participants
are
closely
watching the US presidential elections
What TF+ subscribers say:
and its impact on global financial
Think Investment Think TECHNO FUNDA PLUS
markets. The BSE Sensex corrected
sharply by 656.06 points to close at
Techno Funda Plus is a superior version of the Techno Funda column that
27274.15 and the CNX Nifty closed at
has recorded near 90% success since launch.
8433.75 tumbling 191.95 points for the
Every week, Techno Funda Plus identifies three fundamentally sound
week ending Friday, 4 November 2016.
and
technically strong stocks that can yield handsome returns against
On the macro-economic front, data by
their peers for short-to-medium-term investment. Most of our
Markit Economics showed Indias
recommendations
have fetched excellent returns to our subscribers.
Manufacturing Purchasing Managers
Index (PMI) surge to a 22-month peak
Of the 111 stocks recommended between 11 January 2016 and 19
to 54.4 in October 2016 from 52.1 in
September 2016 (37 weeks), we booked profit in 75 stocks, 13 triggered
September 2016.
the stop loss while 23 are still open. Of these 23 stocks, 15 are trading in
The latest reading was indicative of a
the green while 8 are trading marginally in the red.
robust improvement in manufacturing
business conditions that was in line
If you want to earn like this, subscribe to TECHNO FUNDA PLUS today.
with the long-run series average,
For more details, contact Money Times on 022-22616970/22654805 or
Markit Economics said.
moneytimes.support@gmail.com.
The growth in the Index of Eight Core
Industries stood at 5% in September
Subscription Rate: 1 month: Rs.2500; 3 months: Rs.6000; 6 months:
2016, stronger than the 3.2% growth
Rs.11000; 1 year: Rs.18000.
seen in August 2016. The Eight Core
Industries comprise nearly 38% of the weight of items included in the Index of Industrial Production (IIP).
A recently released report states that India Inc is optimistic about its business prospects with a majority of firms saying
that the current economic conditions are moderate to substantially better compared to the last six months even as cost
and availability of credit remain a concern.
The Overall Business Confidence Index (OBCI) rose to a six quarter high in the Business Confidence Survey conducted by
FICCI indicating that demand is gaining traction. The index value stood at 67.3. Good monsoons and award of the
Seventh Pay Commission will provide a further fillip to demand. Results pertaining to operational parameters indicated
mixed signs.
India is on the recovery course and there are indications of improved economic activity. The government's focus on
reforms has been laudable. The recent consensus on the passage of GST Bill is commendable and industry is looking
forward to it being rolled out in April 2017. This will be a game changer for the Indian industry and economy, the report
said.
High interest cost is a major concern for the industry. It remains critical that the cost of capital is made competitive to
propel investments. The RBI cut the repo rate by 150 bps since January last year.
The government had also announced a cut in the small saving rates earlier this year. It remains critical that banks take
cognizance of the situation and transmit these cuts by lowering the lending rates, a survey noted.
The Eurozone economy should continue to improve slowly. ECB President Mario Draghi said, Inflation will be creeping
up in the coming months. But the risks are to the downside means performance is more likely to be worse than better.
Mr. Draghi also said that it was mainly economic events outside the Eurozone that would affect the economy.
The economic recovery in the Euro area is expected to be dampened by subdued foreign demand, he added as the
ECBs decision to leave the monetary policy unchanged.
On the US front, US elections are scheduled to be held on Tuesday, 8 November 2016 GMT and for IST it will be live on
Wednesday, 9 November 2016. Also, the US Federal on 2 November 2016 signalled that the time for another interest
14
rate hike is approaching and it doesnt need more evidence before moving. The Fed said that inflation has been moving
up toward its 2% target since the beginning of the year.
The Indian stock market remained open for a Muhurat trading session on Sunday, 30 October 2016 on account of Diwali
from 18:30 to 19:30 IST.
The Indian financial markets were closed on Monday, 31 October 2016, on account of Diwali.
Key index fell on Tuesday, 1 November 2016, on profit-booking. The Sensex ended 53.60 points (-0.19%) lower to close
at 27876.61.
Key index tumbled on Wednesday, 2 November 2016, on consolidated selling of equities on global worries. The Sensex
corrected 349.39 points (-1.25%) to close at 27527.22.
Key index fell on Thursday, 3 November 2016, on extended selling of equities. The Sensex tanked 96.94 points (-0.35%)
to settle at 27430.28.
Key index settled down on Friday, 4 November 2016, ahead of the US election outcome. The Sensex was down 156.13
points (-0.57%) to close at 27274.15.
For future events, national and global macro-economic figures will surely dictate global markets movements and
influence investor sentiment in the near future.
The government is scheduled to release figures based on wholesale price index (WPI) and the combined consumer price
indices (CPI) for urban and rural India for October 2016 by mid-November 2016.
On the global front, the Caixin China manufacturing PMI data and the Caixin China services PMI data for October 2016 is
scheduled to be released in the coming weeks of November 2016.
By Subramanian Mahadevan
STOCK BUZZ
Seshasayee Paper & Boards Ltd: Unsustainable

(BSE Code: 502450) (CMP: Rs.700) (FV: Rs.10)
Tamil Nadu-based Seshasayee Paper & Boards Ltd (SPBL) manufactures and markets a wide variety of paper boards and
also exports merchandise like cashew besides paper and boards. Its paper manufacturing capacity is 1,15,000 TPA. It
derives 70% of its revenue from writing and printing (W&P) paper while the balance is derived from industrial varieties
like poster paper, duplex boards, kraft paper, etc. It uses bagasse as the raw material to reap the tax benefits. It products
include W&P papers, packing and wrapping papers and speciality papers, which are marketed under the following
brands - SPrint, Colour Sprint, Index, SprintPlus, Success etc.
SPBL incurred capex of Rs.10 crore in 1994 for completing the first phase of its modernization programme and an
additional Rs.6 crore in the same year on energy conservation, financed by term loans from IDBI. In 2003, it launched a
multi-purpose business paper Sprint, which was well accepted in the market.
Q1FY17 was a stellar quarter for the Company as the following factors boosted its bottom-line higher production and
sale of paper and note books; moderation in prices of principal inputs; cost optimization in the usage of raw materials
including power and fuel; and lower finance cost due to repayment of term loans. Although the remaining quarters of
FY17 continue to be fairly stable for the paper industry with high demand and robust price realization, we advise
investors to book partial profits and take money off the table as the stock currently trades at its all-time high and the
current valuation may not sustain.
*****
Cosmo Films Ltd: Book profits & re-enter
(BSE Code: 508814) (CMP: Rs.379.50) (FV: Rs.10)

Cosmo Films Ltd (CFL) is one of the lowest cost BOPP (Biaxially Oriented Polypropylene Films) manufacturers and the
fifth largest player in the world that manufactures packaging films, lamination films, label films and industrial films for
various packaging applications. It is also a leading manufacturer of BOPP films and speciality films with over 20%
market share offering cost-effective innovative packaging solutions to leading FMCG and global brands. Over the years,
the Company has expanded its product portfolio to improve profitability and growth. Its products include thermal,
coating and metalizing films besides the traditional BOPP films.
15
CFL has three manufacturing facilities in India and one each in Korea and USA which cater to clients in 100+ countries
with major presence in USA, Europe, Japan and India. It derives 50% of its revenue from exports (value-added high
margin speciality films account for 70%).
CFL posted slightly disappointing Q2FY17 results with a marginal increase in PAT on 7% lower sales. Although global
demand for BOPP is expected to be in high single digit for the rest of the financial year, any price hike in raw material
Polypropylene, a derivative of crude oil may prove to be a dampener as the Companys raw material cost is 64% of its
sales. FY18 numbers will fully reflect the sales and earnings of the Companys 60,000 TPA plant likely to be
commissioned soon. Book profits and re-enter at lower levels.
PRESS RELASE
GreenSignal Bio Pharma IPO opens on 9th November 2016

Vaccine manufacturing company GreenSignal Bio Pharma Ltd (GSBPL) is entering the capital market through its IPO of
1,45,79,560 equity shares in the price band of Rs.76-80 per share of Rs.10 each through an Offer for Sale (OFS) by P.
Sundaraparipooranan, Dr. P. Murali, Mallika Murali, R. Srinivasan and Avon Cycles Ltd. The offer will constitute 38% of
the fully diluted post offer paid-up equity share capital of the Company. The issue opens on Wednesday, 9th November
and closes on Friday, 11th November.
GSBPL is one of the four companies worldwide which is WHO-prequalified to supply the BCG vaccine to UNICEF. It
produces BCG vaccines for immunization against tuberculosis and BCG-ONCO for immunotherapy (Freeze Dried) BP for
the treatment of Urinary Bladder Carcinoma. GSBPLs revenue from operations grew 210.36% to Rs.2049.25 lakh in
FY16 from Rs.660.29 lakh in FY15. For FY16, domestic and international operations accounted for 53.79% and 46.20%
of the Companys net revenues from operations respectively.
By Vihari
EXPERT EYE
Shemaroo Entertainment Ltd: Share bonanza

Shemaroo Entertainment Ltd (SEL) has posted excellent Q2FY17 results with a top-line growth of 20.9% YoY, which
underlines its commitment to scale up its revenue from digital media which grew 51.5% YoY. The Companys constant
effort to invest in quality content and monetize it across existing and emerging platforms gives it an edge.
Founded in 1962, SEL is a well-established and reputed media content house with activities encompassing content
acquisition, value addition and distribution. It was co-founded by Mr. Budhichand Maroo as a book circulating library in
1962, which became one of Indias first movie video cassette rental businesses in 1979. Over the years, the Company has
emerged as one of the largest independent content aggregators distributing content through different media platforms
like broadcasting channels and new media platforms like mobiles, internet, Home Video, In-flight entertainment etc.
In July 2016, SEL entered the Limca Book of Records for
For the busy investor
First and longest Antakshari on Twitter and to break the
record for Most tweets in a day to public for its digital
Fresh One Buy Daily
campaign FilmiGaane Antakshri on Twitter Punjabi and
Fresh One Buy Daily is for investors/traders who are keen to
Gujarati regional language services launched with Airtel
focus and gain from a single stock every trading day.
Digital TV.
With just one daily recommendation selected from stocks in
SELs expansion has continued into new media platforms
an uptrend, you can now book profit the same day or carry
such as mobile value added services, DTH and internet
over the trade if the target is not met. Our review over the
platforms like YouTube. In 2010, it tied-up with the AKG
next 4 days will provide new exit levels while the stock is still
group for online video services providing AKG with
in an uptrend.
premium video content for NyooTV.com, its social
This low risk, high return product is available for online
television network. In September 2014, it raised Rs.120
subscription at Rs.2500 per month.
crore through an IPO of 77.41 lakh shares by diluting 20%
Contact us on 022-22616970 or email us at
of the promoters stake.
moneytimes.suppport@gmail.com for a free trial
The Companys Content Library has over 2,900 title rights,
which it distributes across various existing and emerging
16
media platforms. Of this, over 700+ titles are perpetual rights (wholly-owned) and the remaining 2,200+ titles are
aggregate rights (partially owned). This spans new and old Hindi films and titles in various regional languages like
Marathi, Gujarati, Punjabi, Bengali etc as well as non-film content. SEL is one of the largest independent content
aggregators in Bollywood and CGI animated films like Bal Ganesh. Maaza Navra Tuzi Baiko was its first film in the
regional category, which was the highest grossing movie in Marathi Cinema in 2006.
Identifying movies that have the longest shelf life for television and other media content, SEL pioneered the movie
library syndication business by acquiring movie titles from producers and distributing it to broadcasters and other
media platforms. The Company has grown multifold over the years by developing excellent relationships with producers
and the broadcasting networks and thereby emerged as the largest organized player in a historically fragmented
industry. It also has ancillary revenue streams like New Media and Home Video movie distribution, which contribute the
remaining 5-10% of the revenue.
SEL has extended its relationship with The Orchard (an international distributor of digital content) for distributing and
marketing its music catalogue on iTunes in the Middle East and North Africa (MENA) region. Earlier, it had also entered
into a strategic alliance with Orchard to distribute its music content in Latin America, North America, Europe and Asia
Pacific. The deal allows Orchard to exploit SELs music catalogue of 100+ international digital platforms like iTunes,
Spotify, Rhapsody, eMusic, Virgin FR, Amazon Digital Services Inc, Xbox Music, radio, MediaNet, etc. The vast repertoire
of music includes film and non-film across multiple genre like folk, pop, sufi, qawwalis, kids music and regional music.
This means that Indians living abroad can also enjoy audio songs in their own language as a variety of regional music in
22+ languages including Punjabi, Marathi, Bhojpuri, Gujarati and Bengali among others, that are available on these
platforms. In July 2015, the Company partnered with Sharukh Khans Red Chillies Entertainment to distribute Shahrukh
Khans films on the television platform.
Traditional Media includes Broadcast Syndication, Home Entertainment and Others Broadcast Syndication. SEL has a
diverse content library of over 2,900 titles, which it syndicates to various broadcasting channels. This vertical
contributes over 50% of the Companys revenue. It has distributed over 1,000 films for telecast on TV networks.
Considering its vast and diverse library, most broadcasting channels would have syndicated content from the Company
at some time or the other.
Theatrical, Television and Overseas release generate 90-95% of the revenue in the first cycle of launch, where SEL is not
typically present. It participates in the second and subsequent cycles of film monetization. These subsequent cycles of
film monetization have been growing due to various factors like rising advertisement spends, digitization etc. There is a
lower risk in these cycles due to visibility of performance of movie during the first cycle of launch based on which SEL
decides on the cost of the content after it is confident of achieving the desired return on investment at the portfolio level.
It then distributes this content over different platforms like Broadcasting channels, New Media platforms like
YouTube.com and others. Its content on YouTube gets around 45-60 million views a month or around 1.5 to 2 million
hits per day. SEL earns revenue share from the advertisements shown on its channel on YouTube by way of Banner Ads,
Pre-roll ads and Mid-roll ads etc.
For FY16, the Companys net profit jumped 33% to Rs.55.4 crore on 16% higher sales of Rs.375 crore fetching an EPS of
Rs.20.4 and a dividend of 15% was paid. During Q2FY17, its net profit jumped 36% to Rs.15.2 crore from Rs.11.2 crore
in Q2FY16 on 21% higher sales of Rs.113.6 crore fetching an EPS of Rs.5.6. During H1FY16, its net profit climbed 28% to
Rs.29.2 crore on 22% higher sales of Rs.209.4 crore fetching an EPS of Rs.10.8.
With an equity capital of Rs.27.2 crore and reserves of Rs.344.8 crore, its share book value works out to Rs.137. The
promoters hold 65.8% of the equity capital, FIIs hold 13.5%, DIs hold 2% and PCBs hold 5.8%, which leaves 12.9% stake
with the investing public.
Coming to the futures prospects of the New Media industry, internet penetration is expected to grow faster than
television penetration to reach 496 million users by 2017 at 23.3% CAGR. Digital advertisement spends have reached 67% of the total Media and Entertainment industry. Advertising revenues are expected to grow at 32% CAGR till 2017.
Indian digital ad spend is likely to zoom from Rs.2200 crore in 2012 to Rs.8700 crore in 2017 at 32% CAGR as against
Chinas 24%, Brazils 19%, USAs 10% and UKs 9%.
The Indian Television industry is expected to grow from Rs.42,000 crore in 2013 to Rs.84,600 crore in 2018 at a CAGR of
about 15%. Subscription revenue is expected to increase from Rs.28,200 crore in 2013 to Rs.59,300 crore in 2018 at a
CAGR of 16%. Advertising revenue is expected to grow at a CAGR of about 13% from Rs.13800 crore in 2013 to reach
Rs.25300 crore.
The Home Entertainment business has helped SEL emerge as a nationwide well-known and accepted brand. Its products
are available across 2,000+ retail stores (Planet M, Music World, Crossword, Landmark, Reliance Retail, etc.) in 75+
towns and cities in India.
17
With higher internet usage, the Cost per

NIFTY & BANK NIFTY
Thousand Impressions (CPM) advertising rates in
(Live Market)
India is expected to rise. The current CPM rates
range between $1-4 depending on the content
Identifies intra-day Trading Opportunities and also
while it is much higher at $10-40 in USA. Further,
provides
positional calls for a day or two depending on the
as internet penetration improves, page views are
range of the target.
expected to grow at an exponential pace, which
should translate into higher CPM rates for
Available daily by SMS or on Live Chat.
domestic content. This in turn, would lead to
Subscription Rate: Rs.3000 per month & Rs.24,000 per
higher ad revenues for SEL going forward.
annum.
With its partnership with the major telecom
operators and other digital media platforms, SEL
is at the forefront of the digital age. It has also tied up with many content providers across the country. The Shemaroo
brand today is synonymous with quality entertainment in the Indian entertainment eco system. Further, expansion of its
library, digitization and the roll out of 4G broadband and higher margins going forward after the contribution of new
media segments give strong revenue visibility.
SEL is likely to notch an EPS of Rs.25 in FY17 and Rs.28 in FY18. At the CMP of Rs.330.20, the SEL share trades at a P/E
of 1325x on FY17E and 11.7x on FY18E earnings respectively. A reasonable P/E of 16.5x will take its share price to
Rs.412 in the medium-term and Rs.462 thereafter.
*********
Dalmia Bharat Sugar & Industries Ltd: Sweet deal!

Incorporated in 1935 by Mr. Jaidayal Dalmia, Dalmia Bharat Sugar & Industries Ltd (DBSIL) is one of the largest sugar
manufacturers with 29,250 TCD cane crushing capacity. Its plants are located at Ramgarh, Jawaharpur and Nigohi in
Uttar Pradesh (UP). In 1939, the Company set up a cement unit with installed capacity of 250 TPD. Over a period of time,
it enhanced the plants capacity to 9 MMTPA. Mr. Gautam Dalmia is the Managing Director of the Company.
In March 2005, DBSIL completed the installation of the 27 MW captive thermal power plant. In FY07, it commissioned 2
bagasse-based co-generation power plants at Jawaharpur and Nigohi of 27 MW each. Post expansion, the Company is
now a fully integrated player with 79 MW of cogeneration capacity and a 80 KLPD of distillery capacity.
In May 2010, DBSIL and Kohlberg Kravis Roberts & Co LP (KKR) signed a definitive agreement under which KKR agreed
to invest up to Rs.750 crore in the Company's wholly-owned unlisted subsidiary which would house DBSIL's 9 MMTPA
cement manufacturing capacity post restructuring. As per the scheme of arrangement, DBSIL de-merged its cement
business, refractory business, thermal power business and certain other businesses into Dalmia Bharat Enterprises Ltd.
Post the demerger, the name of the company was changed from Dalmia Cement (Bharat) Ltd to Dalmia Bharat Sugar &
Industries Ltd w.e.f. September 2010. During FY11, the Company installed multi-fuel boilers at Jawaharpur to enable
seamless power generation during off-seasons.
Currently, the Company is derives total revenue of 78% from sugar while the balance 22% is from cogeneration and the
distillery. DBSIL produces high quality sugar, which is widely accepted in UP and eastern India and by institutional
buyers such as Pepsi, Coke, Britannia, Bharati Wal-Mart, Parle etc. who have stringent quality norms.
In FY16, DBSIL commissioned a 60 KLPD distillery plant in Maharashtra. In FY15, it acquired a 1,750 TCD sugar mill at
Sangli, Maharashtra, thereby increasing the total crushing capacity to 29,250 TCD. Post expansion, the crushing capacity
at the Sangli unit stands enhanced at 10,000 TCD from the existing 6,750 TCD, which will take the total sugar capacity to
32,500 TCD. With cogeneration expansion at Maharashtra, the total renewable energy capacity will stand at 119 MW.
For FY16, DBSILs net profit skyrocketed 3849% to Rs.58.5 crore on flat sales of Rs.1166 crore. During Q2FY17, it posted
a net profit of Rs.48.3 crore as against a loss of Rs.5.1 crore in Q2FY16 on 58% higher sales of Rs.417.6 crore. For
H1FY17, it posted a net profit of Rs.96.6 crore as against a loss of Rs.14.7 crore on 44% higher sales of Rs.760.1 crore
fetching an EPS of Rs.11.9.
With an equity capital of Rs.16.2 crore and reserves of Rs.491.2 crore, its share book value works out to Rs.63. The value
of its gross block was Rs.1415 crore (up from Rs.960 crore in FY12). Net debts of Rs.946 crore give it a DER of 1.9:1. The
promoters hold 74.9% of the equity capital, FIIs hold 1.1% and DIs hold 2.9%, which leaves 21.1% stake with the
investing public.
18
The Central governments initiative of mandatory blending of 5% ethanol is expected to rise to 10%, which will boost
profit margins since realisation on ethanol is better than other distillery products. DBSILs regional diversification has
led to higher power realisations and increased share of downstream products contributing to higher profitability
margins.
India is the second largest sugar producing country in the world after Brazil with 16% market share. International sugar
prices have recovered from a low of 10.7 US cents/pound in August 2015 to 20 cents/pound in August 2016 due to
sugar deficit world-over as Brazil is likely to record a reduction in sugar production.
India offers the lowest retail sugar prices in comparison to other key sugar consuming countries. It also has the lowest
per capita consumption of sugar as compared to the world average. A dry El Nino has reduced agricultural yield and
sugar recoveries in Thailand, which is estimated to produce 10.3 MMT in FY16 in the best case scenario a shortage of
over 6,00,000 tonnes. This trend is likely to continue in FY17.
Indias sugar production is estimated at about 25.2 MMT in sugar season (SS) 2015-16, a 10.95% drop from 28.30 MMT
in SS2014-15. At the same time, sugar export is expected to remain about 2 MMT higher than import in SS2015-16. This
would result into depletion in closing stock of sugar from about 9 MMT at the end of SS2014-15 to about 7.2 MMT at the
end of SS2015-16. The decline in sugar production in India is attributed primarily to drought in states of Maharashtra
(largest sugar-producing state in India) and Karnataka (third largest). There is huge fall in these two states a decline
of 20% in Maharashtra from 10.52 MMT to 8.4 MMT; and a decline of 18% in Karnataka from 4.99 MMT to 4.10 MMT.
Blending targets under EBP (Ethanol Blending Programme) is scaled up from 5% to 10%. In January 2015, remunerative
prices for Ethanol supplied under EBP were fixed in the range of Rs.48.5-49.5 per litre, a substantial increase over
previous years. For SS15-16, the government had also waived-off excise duty on ethanol supplied for blending in order
to further incentivise the mills.
Sugar consumption in India has a growth potential due to the rise in per capita income in the country. The Maharashtra
government has waived the 3% tax on cane purchase for mills that exported 12% of their sugar output in between
October 2015 and September 2016.
Sugar prices are expected to remain stable providing reasonably good margins to mill owners. Moreover, the
government has introduced measures such as imposition of stock holding limits by traders, imposition of 20% export
duty and withdrawal of excise duty exemption on ethanol supplied for blending in order to maintain sugar availability in
the domestic market.
Based on the current going, DBSIL is all set to post an EPS of Rs.25 in FY17. At the CMP of Rs.112.90, the DBSIL share
trades at a forward P/E of just 4.5x. A reasonable P/E of 6.8x will take its share price to Rs.170 in the medium-term
fetching 50% returns. Its 52-week high/low is Rs.168.40/55.50.
By Nayan Patel
ABC Bearings Ltd

(BSE Code: 505665) (CMP: Rs.174.85)
(FV: Rs.10)
Incorporated in 1961, Mumbai-based ABC
Bearings Ltd manufactures and sells bearings.
Its products include taper roller, cylindrical
roller, clutch release, ball, king pin, needle
roller, slewing and spherical roller bearings as
well as GP3 grease and universal joint
products. Its products are used in cars, multi
utility vehicles, light commercial vehicles,
earthmovers, two-wheelers, rotators, heavy
commercial vehicles, tractors and gear boxes.
With an equity capital of Rs.11.55 crore and
reserves of around Rs.115.41 crore, its share
book value works out to Rs.109.92 and its
TECHNO FUNDA
REVIEW
Jenburkt Pharmaceuticals recommended at Rs.482.35 last week

zoomed to Rs.572.5 recording 19% appreciation in just 1 week.
Pudumjee Paper Products recommended at Rs.21.17 on 24 October

2016 zoomed to Rs.25.8 last week recording 22% appreciation in just 2
weeks.
DHP India recommended at Rs.138.6 on 19 September 2016 zoomed

to Rs.172.9 last week recording 25% appreciation in just 10 weeks.
Talbros Engineering recommended at Rs.257.9 on 12 September 2016

zoomed to Rs.357.8 last week recording 39% appreciation in less than
2 months.
Kushal Tradelink recommended at Rs.162.25 on 29 August 2016

zoomed to Rs.333 last week recording 105% appreciation in just 2
months.
19
price:book value ratio stands at just 1.56x, which is quite attractive. The promoters hold 38.76% of the equity capital,
which leaves 61.24% stake with the investing public.
For Q2FY17, the Companys PAT zoomed 134% to Financial Performance:
(Rs. in crore)
Rs.1.45 crore on higher sales of Rs.44.18 crore fetching
Particulars Q2FY17 Q2FY16 H1FY17 H1FY16 FY16
an EPS of Rs.1.25. During H1FY17, its PAT zoomed 172%
44.18
47.77
100.24 97.03
200.68
to Rs.4.7 crore from Rs.1.73 crore in H1FY16 on higher Sales
PBT
2.22
0.96
7.22
2.61
8.38
sales of Rs.100.24 crore fetching an EPS of Rs.4.07. For
Tax
0.78
0.34
2.52
0.89
2.9
FY16, the Company paid a dividend of 20%. It is a regular
PAT
1.45
0.62
4.7
1.73
5.48
dividend-paying company.
EPS
(Rs.)
1.25
0.54
4.07
1.5
4.74
Currently, the ABC Bearings stock trades at a P/E of just
23.8x and looks quite attractive for investment as the prospects of the auto ancillary sector also appear bright. Investors
can buy this stock with a stop loss of Rs.145. On the upper side, it could zoom to Rs.205-210 in the medium-term and
further to Rs.250+ in the long-term.
*****
Mafatlal Industries Ltd

Incorporated in 1905, Mumbai-based Mafatlal Industries Ltd is engaged in the manufacture and sale of textiles. It offers
mens wear such as suitings, trousers, shirtings and readymade garments; denims; womens wear including prints,
voiles, sarees, rubia and night wear products; school uniforms; corporate uniforms; work uniforms; hospitality
uniforms; medical uniforms; bed linen products such as bed sheets and pillow covers; bath towels; and ready-to-stitch
packs. It also provides speciality fabrics consisting of flame retardant, anti-static, teflon coated, anti-bacterial, soilresistant, water repellant and perfumed fabrics for use in fire-fighting, telecom, medical, petrochemical and fashion
industries. The Company exports to USA, South America, UK, Switzerland, Italy, France, Germany, UAE, Qatar, SaudiArabia, Yemen, Oman, Egypt, Bangladesh, Sri Lanka, Sudan, Mauritania, Malaysia, Indonesia, Thailand, Hong Kong and
Japan.
With an equity capital of Rs.13.91 crore and reserves of Rs.362.03 crore, its share book value works out to Rs.270.21 and
its price:book value ratio stands at just 1.27x, which is quite attractive. The promoters hold 74.86% of the equity capital,
which leaves 25.14% stake with the investing public.
For Q2FY17, the Companys PAT zoomed 290.11% to Financial Performance:
(Rs. in crore)
Rs.10.26 crore on higher sales of Rs.302.09 crore Particulars Q2FY17 Q2FY16 H1FY17 H1FY16 FY16
fetching an EPS of Rs.7.37. During H1FY17, its PAT
Sales
302.09 281.27 677.39 653.33 1323.09
soared 97.7% to Rs.18.07 crore from Rs.9.14 crore in
PBT
10.26
3.15
18.07
10.76
18.84
H1FY16 on higher sales of Rs.677.39 crore fetching an
0.52
1.62
1.72
EPS of Rs.12.99. Its H1FY17 PAT is higher than full Tax
PAT
10.26
2.63
18.07
9.14
17.12
FY16. For FY16, the Company declared a dividend of
EPS
(Rs.)
7.37
1.89
12.99
6.57
12.31
30%. It is a regular dividend-paying company.
Currently, the stock trades at a P/E of just 18.5x and looks quite attractive for investment as the prospects of the textile
sector also appear bright and Mafatlal group stocks are fancied by investors. Investors can buy this stock with a stop loss
of Rs.315. On the upper side, it could zoom to Rs.425 in the medium-term and further to Rs.550+ in the long-term.
20
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21
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2 yrs = Rs.12000, 3 yrs = Rs.15000
Investrak Smart Moves (Courier/Online)
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Panchratna (Courier/Online)
1 qtr = 2500, 2 qtrs = Rs.4000, 1 yr = Rs.7000

Beat the Street 6 (Courier/Online)
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Nifty Options (Pre-market) (Online)
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Bank Nifty (Pre-market) (Online)
1 mnth = Rs.1500, 1 yr = Rs.12000

Nifty & Bank Nifty (Live Market) (SMS)
1 mnth = Rs.3000, 1 yr = Rs.24000

Live Market Intra-day Calls (SMS)
1 mnth = Rs.4000, 1 yr = Rs.36000

Profitrak Daily (Online)
1 mnth = Rs.2500, 3 mnths = Rs.7000

6 mnths = Rs.13000, 1 yr = Rs.20000
Fresh One Buy-Daily (Online)

1 mnth = Rs.2500, 1 yr = Rs.25000
Profitrak Futures (Online)
1 mnth = Rs.3500, 3 mnths = Rs.7000
6 mnths = Rs.13000, 1 yr = Rs.20000
Profitrak Daily Fresh Futures (Online)
1 mnth = Rs.4000, 1 yr = Rs.36000
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