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T I M E S
A TIME COMMUNICATIONS PUBLICATION
VOL XXVI No.19 Monday, 13 19 March 2017 Pgs.22 Rs.18
Events to drive market trend Now follow us on Instagram, Facebook &

By Sanjay R. Bhatia Twitter at moneytimes_1991 on a daily basis
The markets struggled ahead of the state election results. The Nifty to get a view of the stock market and the
failed to sustain above the 8969 resistance level and even happenings which many may not be aware of.
breached the 8900 mark intra-day last week on sustained bouts of
profit-booking and selling pressure. Moreover, buying support remained dismal and stock specific. Broader markets
continued to correct last week as the breadth of the market remained weak amidst high volumes, which is a negative
sign for the markets.
The FIIs remained net buyers in the cash segment but
turned big sellers in the derivatives segment. Moreover, Believe it or not!
the DIIs too pressed sales and were seen booking Sunil Healthcare recommended at Rs.86.80 in TT
profits regularly. Crude prices traded between $49-53 last week, zoomed to Rs.106.10 fetching 22%
amidst high inventory data. In the US markets, the returns in just one week!
likelihood of Federal Reserve hiking rates in its
Royal Orchid Hotels recommended at Rs.85.20 in
forthcoming meeting on 14-15 March has risen. With
TT last week, zoomed to Rs.97.25 fetching 14%
quite a few Central Bank meetings lined up next week,
the global markets are likely to remain volatile.
returns in just one week!
Virat Industries recommended at Rs.89.75 in TT on
Technically, the prevailing positive technical conditions 20 February 2017, zoomed to Rs.109.95 last week
helped the markets move higher. The MACD, RSI and
fetching 23% returns in just three weeks!
KST are all placed above their respective averages on
DCB Bank recommended at Rs.117.75 as SW on 23
the weekly charts. Moreover, the Nifty is placed above
its 50-day SMA, 100-day SMA and 200-day SMA. The
January 2017, recorded a new 52-week high at
Niftys 50-day SMA is placed above its 100-day and 200- Rs.163.90 last week fetching 39% returns in less
day SMA, which indicates a golden cross breakout. than two months!
These positive technical conditions could lead to buying Oracle Financial Services Software recommended
support at lower levels. at Rs.3134.75 as SL on 9 January 2017, zoomed to
The prevailing negative technical conditions, however,
Rs.4088.60 last week fetching 30% returns in two
still hold good and are likely to weigh on the market months!
sentiment. The MACD, RSI, Stochastic and KST are all (SL Spotlight; SW Stock Watch; TT Tower Talk)
placed below their respective averages on the daily This happens only in Money Times!
chart. Further, the Stochastic is placed below its Now in its 26th Year
average and in the overbought zone on the weekly
chart. The Nifty has formed a negative divergence pattern on the daily chart, which is a negative sign for the markets.
These negative technical conditions could lead to intermediate bouts of profit-booking and selling pressure especially at
the higher levels.
A Time Communications Publication 1

The ADX line is placed above the +DI line and the -DI line and is also placed above the 37 level on the daily chart. The +DI
line is placed above the DI line and above 31, but it has come off its recent highs, which indicates that buyers are
booking profits regularly. The market sentiment remains tentative ahead of the state election results on 11 March 2017.
Though the Nifty touched its 52-week high few
days ago, it failed to capitalize on it. It is
important that the Nifty moves and sustains
above the 8969 level for any gains to materialize.
Follow-up buying support is crucial at higher
levels. Intermediate bouts of profit-booking and
selling pressure are likely to be witnessed due to
overbought conditions and a slew of events lined
up for next week. In case the Nifty fails to hold
the 8807 mark, then increased selling pressure is
likely and it could test the 8700 mark.
In the meanwhile, the markets could take cues
from the state elections results, Federal
Reserves meeting and its decision on interest
rates, the Dollar-Rupee exchange rate, global
markets and crude prices.
Technically, the Sensex faces resistance at the 29078, 29362, 29450 and 30025 levels and seeks support at the 28872,
28478, 28257, 28100, 27650, 27131 and 26730 levels. The resistance levels for the Nifty are placed at 8969 and 9120
while its support levels are placed at 8807, 8737, 8673, 8600, 8510 and 8460.
BAZAR.COM
Poll drama ends
Assembly polls lasting over seven weeks is a very tiring experience for the politicians and the electorates. The markets,
too, experience pre-poll result swings of ups and downs. The roadshows, yatras, speeches, repartees keep the election
burner on. And the real fun starts when exit polls begin testing the nerves not only of the poll watchers but of the
politicians too! Its great fun when politicians boast of winning two-thirds majority suddenly find themselves not even
crossing the two digit mark. Not only that sleeping with the enemy so common in politics is so openly seen. Above all
this drama, the real volatility which the Sensex or the Nifty brings to its fore is worth noting.
During these past eight poll weeks, the market alternated between bouts of ups and downs. What swayed the sentiment
were the vitriolic speeches by either side. The forty eight hours between exit poll results and the actual results brings in
the twists and turns in political thinking. It gives great opportunity to introspect as to how the minds of politicians work.
It points to the sway in their moods. A lot crystallizes in such trying times and gives an insight into the working of their
political minds.
The market, a keen observer of such a psyche, treads very carefully during such days. No wonder, the sway in favour of
BJP during exit poll results was taken with a pinch of salt. Narrow intra-day movements either way on Friday highlights
the factoring of the exit polls. Some startling facts that come out in open today are worth noting not only from the angle
of politics but also from the angle of economic development.
The current five state election results prove beyond doubt that BJP is consolidating its place as a formidable force and its
Narendra Modi who is navigating the ship. The vote for BJP, vote for NaMo indirectly means a vote for DeMo too. Be it
rich or poor, haves and have nots all of them have welcomed the note bandi move. If this surfaces to the fore. NaMo
government will be taking on economic reforms with a vengeance. Not only will they be able to extend their reach to
different states pan India but also get their magical Rajya Sabha numbers with ease.
The impact of the exit poll results, if proved to be the real, will be far fetching. The impact of the outcome will see
transformation of the BJP into a party of lower castes, backward class and the poor from that of the upper and elite class.
Such a transformation will make it tougher for the opposition to take it on nationally.
The byproduct of such a polarization of electorates to the BJP will unite all the opposition forces against NaMo and this
will be evident in the ongoing budget session.

Dilution of Congress continues even as the rising tally in Punjab is more due to Captain Arminders herculean efforts
without any credit to Rahul Gandhi. The rise of AAP at the cost of Congress makes it on force to reckon with in the
coming assembly polls of MP, Gujarat and Rajasthan. Frankly speaking, Congress loss is AAPs gain. Regional parties like
SAD, SP, BSP, Shiv Sena must learn a lesson that the BJP tsunami will prove to be dangerous even for the NDA
participants who are raising their heads of late. Coming days may see a softening of stand by the Shiv Sena and Naveen
Patnaiks BJD. Mamatas TMC may now be silence the trumpet which it raised to a crescendo during note bandi.
Note bandi which gets the nod of the masses, silences the opposition for now. They may need something more deadlier
to attack NaMo than the so-called tremor filled diary pages threatened by RaGa.
Last but not the least, the exit poll results and the actual results due on Saturday, 11 March 2017, highlight that the
electorates are overcoming the caste and religion barriers for the development and integrity of the nation. After nearly
two decades a single party government at New Delhi sparks hopes of single party rule at the state level too. Believe it or
not, India is seemingly moving towards the federal system of politics from the parliamentary type. Very soon, it will be
simultaneous state and central polls and slowly shifting to two party rule and direct election of the presidential
candidate who shall govern the country.
Market may witness slow and limited rise for now and look upto consolidation of gains so far.
TRADING ON TECHNICALS
Sensex caged between 29145-28716
By Hitendra Vasudeo
Sensex Daily Trend DRV Weekly Trend WRV Monthly Trend MRV
Last Close 28946 Up 28544 Up 27971 Up 26618
Last week, the Sensex opened at 28859.21, attained a high at 29098.46 and moved to a low of 28815.02 before it finally
closed the week at 28946.23 and thereby showed a net rise of 113 points on a week-to-week basis.
Days of trading have been added but without any significant price change as last week movement was In Bar on weekly
chart narrowing down the movement with volatility.
Daily
Immediate support for the Sensex is at 28700. Sideways movement for the last few days was witnessed and managed to
remain above 28700 but failed to provide the immediate breakout above 29145. A fall and close below 28700 will show
a correction on the daily chart and an upside momentum will continue when it crosses and closes above 29145.
A correction to the DRV of 28463 can happen if it sustains below 28700.
Weekly
The weekly chart supply zone remains at 29162-
30024. Expect a rally to 31072 and 34000
whenever a breakout and close above 30024 is
witnessed.
On the immediate front, resistance of 29077-
29145 needs to be crossed with a bullish candle
in order to test and cross the historical peak of
30024.
Higher range for the week can be 29090-29374.
Sustainability issues will remain till a decisive
weekly bullish candle is not witnessed. Higher
levels will attract profit-booking pressure
leading to volatility.
Yearly Levels for 2017
The yearly open-close logic is as follows: If the Sensex trades above the open (26711) and also above last years close
(26626), then the yearly uptrend will stay. Trade long with a stop loss as the current years low or the previous years
close, whichever is lower. In the current situation, the current years low of 26447 is lower and hence it remains a stop
loss alert for the 2017 uptrend.

If the Sensex remains above the center point, then the Yearly Level 3 of 29637 could be attained. A minimum upside for
the year 2017 could be 29637 while the maximum possible could be 36220.
The high till now is 29145, which is very close to 29637. Therefore, the Sensex shivers at the higher levels or is hesitant
to move up and sustain higher levels. The Sensex has already moved from 26711 to 29145 notching up significant gains
based on the logic mentioned above.
Evergreen
Trend based on Rate of Change
(RoC) WINNERS 2017
Daily chart:
1-Day trend - Up
Features 31 stocks identified as performers
3-Day trend - Down At launch on 1st January 2017, all 31 stocks were selected as
8-Day trend - Up Winners but must go up and down their journey providing you
Weekly chart: an opportunity to buy / sell or accumulate during the year
1-Week trend - Up Of the 31 stocks identified, 22 are gainers already
3-Week trend - Up
The Yearly Levels and Quarterly Levels provide for Profit
8-Week trend - Up Booking
Monthly chart:
1-Month trend - Up
On Correction, the Lower Levels are for Accumulation at Yearly
and Quarterly Level
3-Month trend - Up
8-Month trend - Up Stocks where Profit booking is witnessed and are correcting
Quarterly chart: offer an opportunity for Accumulation
1-Quarter trend - Up Currently, 9 stocks have corrected and thus provide an
3-Quarter trend - Up opportunity for accumulation
8-Quarter trend -Up
Yearly chart:
Most Important Reason to Subscribe Now
1-Year trend - Up New Quarterly Levels will be issued at March 2017 end.
3-Year trend - Up Stocks that Move up will offer a new range to capitalize on
8-Year trend - Up
Stocks that correct provide an opportunity at New Quarterly
BSE Mid-Cap Index
Levels
Trend based on RoC
Weekly chart: For more details, contact Money Times on
1-Week trend - Down 022-22616970/4805 or moneytimes.support@gmail.com.
3-Week trend - Down
Subscribe today: Rs.6000 per annum
8-Week trend - Up
The BSE Mid-Cap index could face resistance at the higher range till 13714 is not crossed. The next round of upside
momentum could be witnessed on a rise and close above 13714. If that happens, then expect a rally to 15100. Support is
at 13340-13285. A correction in the BSE Mid-Cap index could resume below 13100.
1-week and 3-week ROC shows near-term concern for the BSE Mid-Cap index as both time frame trends are down.
Upside momentum is above 13714.
BSE Small-Cap Index
1-Week trend - Down
3-Week trend - Up
8-Week trend - Up
The BSE Small-Cap index made a new high in the current rally last week. However, the 2008 peak of 14239 has not been
crossed as yet. Therefore, higher levels could still provide resistance and pressure of profit-booking.
On a further sustained rise and close above 13900, expect a rally to 14900.

Strategy for the week
Traders already long can revise upwards their stop loss to 28700. Profit-booking in the supply zone of 29162-30024 is
suggested as sustainability of the upside momentum can be an issue.
The BSE Small-Cap and the BSE Mid-Cap index above 13700 and 13800 can set a rally to 14900 and 15100 respectively.
Such a rise can fetch handsome returns in times to come.
The market (Sensex, BSE Small-Cap and BSE Mid-Cap indices) appears to be bullish even as the supply zone hangs
overhead. Only a breakdown below 28700 can upset the market.
Traders can trade long on a rise and close above 29150 with the low of the week as the stop loss or 28700, whichever is
lower.
The movement in the last fortnight appears to be choked / caged in a range and looking for next directional movement
and breakout/breakdown. The 2-week high and low henceforth will be important in week to come to provide the
directional movement. The 2-week high and low is 29145 and 28716.
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
Weekly Up
Scrip Last Level Level Center Level Level Relative
Reversal Trend
Close 1 2 Point 3 4 Strength
Value Date
Weak Demand Demand Supply Supply
below point point point point
ESCORTS 509.45 480.1 487.1 502.5 524.9 562.7 71.7 456.3 06-01-17
DEVELOP. CREDIT BANK 159.85 152.0 153.3 158.6 165.2 177.1 70.3 151.6 30-12-16
EXIDE INDUSTRIES 214.35 210.9 211.1 214.1 217.3 223.4 69.8 211.9 30-12-16
SUN TV NETWORK 744.70 721.1 725.2 740.6 760.1 795.1 69.5 719.7 03-03-17
YES BANK 1480.30 1435.3 1448.4 1467.2 1499.1 1549.7 68.3 1450.2 06-01-17
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.
Weekly Down
Scrip Last Level Level Center Level Level Relative
Reversal Trend
Close 1 2 Point 3 4 Strength
Value Date
Demand Demand Supply Supply Strong
point point point point above
RELIGARE ENTERPRISES 210.50 182.2 203.1 216.5 223.9 229.9 27.76 225.47 09-12-16
AMARA RAJA BATTERIES 828.00 780.3 814.3 834.7 848.3 855.0 35.99 844.00 10-02-17
BAYER (INDIA) 3775.00 3523.3 3709.3 3829.7 3895.3 3950.0 36.86 3887.75 17-02-17
CRISIL (CREDIT RATIN 1986.00 1890.7 1955.7 1990.3 2020.7 2025.0 38.58 2022.00 13-01-17
SCHNEIDER ELECTRIC I 130.55 121.4 128.1 132.4 134.9 136.8 39.23 134.00 10-02-17
*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 Supply Supply Supply Demand Monthly

Scrip Strong Above
Close Point Point Point Point RS
BHARAT PETR.COR(BPCL 623.00 638.68 646.00 653.32 677.00 576.7 514.7
CAPLIN POINT LABORAT 385.90 394.80 398.75 402.70 415.50 361.3 327.8
HINDUSTAN ZINC 284.30 297.85 302.40 306.95 321.70 259.3 220.7
BUY LIST
Scrip Last Close Demand point Demand point Demand Point Weak below Supply Point Monthly RS
DEVELOP. CREDIT BANK 159.85 159.35 157.95 156.55 152.00 171.3 183.2
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
Last Weak Supply RS-

Scrip BSE Code Demand Point Trigger Supply point Strength
Close below point
GANESH ECOSPHERE 514167 212.45 210.95 216.20 203.00 224.4 237.6 62.94
EVEREST INDUSTRIES 508906 212.40 204.35 215.00 190.00 230.5 255.5 53.12
*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 government plans to sell 51% stake in Dredging Corporation of India. The stock has the potential to rise by
30% in the next few months.
Foreign investors have been allowed to make further investments in South Indian Bank. This bank may reach new
heights in the times to come. Buy for the long-term.
It is now the turn of fertilisers. Since farmers have greater buying power now, the demand for fertilisers will rise.
Buy GSFC.
The news/rumour of a small fire at one of the plants of Dishman Pharmaceuticals & Chemicals could not dampen
the sentiment in the counter. This is a positive signal and points towards better pricing soon.
Heavy buying has been witnessed in the Reliance Industries counter. The stock has the potential to cross its all-
time high of Rs.1626.
Power Grid Corporation of India has lined up huge expansion plans. A good buy.
Electrosteel Castings, which holds ~55% stake in Srikalahasthi Pipes, is bound to benefit by the huge expansions in
both companies in the next one year. Accumulate.
Canadian pension fund, Caisse de Depot, is contemplates buying 3% stake in Kotak Mahindra Bank. The inherent
strength of the bank and its incoming strategic partner will boost its share price in times to come.
Reliance Capital has sold ~1% stake in Paytm to Chinas Alibaba group for ~Rs.275 crore. This deal will result in
huge profits for the ADA Reliance group since it still holds a big stake that could be sold later. Any further sale could
fire up the stock.
When all power stocks are rising, why should Power Mech Projects lag behind? Its earnings are good and
valuations look decent. Buy for immediate gains.
There is no stopping Maruti Suzuki (India) Ltd. With a few more variants being introduced, the Company will
continue its peer status. Buy for the long-term.
USFDA has cleared Glenmark Pharmaceuticals investigative new drug application for the treatment of respiratory
diseases. The stock will definitely cross Rs.1000 soon.

Indian steel exports are continuously rising backed by the extensive support of the government. It is prudent to buy
Steel Authority of India (SAIL).
The multiplier effect of the impetus given in the budget to the dairy industry will have a spill over demand rise for
makers of PET plastic bottles. Buy Uflex and Polychem for sure shot gains.
Unconfirmed reports of Bharat Financial Inclusion takeover by IndusInd Bank are fuelling up the share price of
the former. Traders with a risk appetite may enter.
Dewan Housing Finance Corporation did a hat-trick by procuring big ticket funds from LIC at lower rates than the
prevailing rates. This housing company is yet to see the best times.
Gujarat Fluorochemicals, a part of the $3 bn Inox group and engaged in industrial gases and chemicals, is faring
extremely well. Its earnings are expected to take a
big leap. Can its share price remain stagnant? Buy
for quick gains. For the busy investor
Early predictions point towards a normal monsoon.
It is prudent to buy Monsanto India and UPL as Fresh One Up Trend Daily
both the stock are poised to touch dizzy heights. Fresh One Up Trend Daily is for investors/traders who are
Indiabulls Housing Finance is a great beneficiary keen to focus and gain from a single stock every
of the Union Budget proposals. It is set to notch an trading day.
EPS of Rs.80 (FV: Rs.2) in FY18. The stock may fetch With just one daily recommendation selected from
over 40% returns going forward.
stocks in an uptrend, you can now book profit the same
Century Enka posted an EPS of Rs.11 in Q3FY17
day or carry over the trade if the target is not met. Our
and Rs.31 in 9MFY17 and is expected to notch an
EPS of Rs.45 in FY17. A conservative P/E of 8.5x will review over the next 4 days will provide new exit levels
take its share price to Rs.382 in the short run. while the stock is still in an uptrend.
KEI Industries may notch an EPS of Rs.12.5 in FY17 This low risk, high return product is available for online
and Rs.16 in FY18 based on its expansion initiative. subscription at Rs.2500 per month.
The stock has the potential to touch Rs.225.
Contact us on 022-22616970 or email us at
Kovai Medical Centre & Hospital is likely to notch
moneytimes.suppport@gmail.com for a free trial.
an EPS of Rs.56 in FY17 and Rs.70 in FY18. The stock
should cross Rs.1400.
Grey market premium for the IPOs of Avenue Supermarts (D-Mart) and Music Broadcast shot up to Rs.235-240
and Rs.87-90 respectively.
An Ahmedabad-based analyst recommends Cords Cables Industries, Eon Electric, Kriti Nutrients, Milkfood and
Manugraph India Ltd. His Future Market Networks recommended at Rs.40.3 on 19 December 2016, zoomed to
Rs.73.65 last week with huge volumes fetching 83% returns in a short span of time.
BEST BET
GIC Housing Finance Ltd
(BSE Code: 511676) (CMP: Rs.302.40) (FV: Rs.10)
By Amit Kumar Gupta
GIC Housing Finance Ltd (GICHF) is engaged in the housing finance business. Its primary business is granting housing
loans to individuals and to persons/entities engaged in the construction of residential houses or flats. It has about 60
branches.
In a bid to cover a larger set of population in the LIG
Financial Ratios:
(low income group) / EWS (economically weaker
Particulars FY15 FY16 FY17E FY18E FY19E
section), the Government of India extended the scope
of Pradhan Mantri Awas Yojana (PMAY) in December BV (Rs.) 122.6 135.9 154.7 177.2 205.2
2016 to include a higher housing ticket-size and Price/BV (x) 1.5 1.6 1.9 1.7 1.5
extend a slightly higher income level eligible for Price/Adj. BV (x) 1.5 1.6 1.9 1.7 1.5
interest subsidy. While the final notification on the P/E (x) 9.5 9.1 11.2 10.1 8.4
scheme is awaited, interactions with stakeholders such as developers operating in the affordable housing space, rating
agencies, housing finance companies (HFCs) and the National Housing Bank (NHB) have indicated that the affordable
housing segment has immense growth potential.

The management expects GICHFs growth to accelerate with the increase in branch reach (plans to add 5-10 branches
every year) and due to its focus on client acquisition and retention. Its lending rates are competitive as compared to its
peers and its pace of repayment including pre-payments has moderated. With levers in place, we have factored in 18-
20% CAGR in disbursement/loans respectively over FY16-19. The extended scope of PMAY bodes well for the Company
given its customer profile (average ticket-size of Rs.16 lakh) and loan exposure (50% of loans are below Rs.15 lakh).
Under these circumstances, GICHFs growth rates are set to inch upwards. We have not factored in the likely benefits of
the scheme into our estimates as we await the developments therein.
The increasing reliance on non-bank funds has helped GICHF reduce its cost of funds and in turn reduce its lending rates.
Spreads over the same time, however, remained healthy at ~240 bps+. We expect the trajectory on spreads to remain
intact over FY16-19.
On the asset quality side, GNPAs increased in Q3FY17 due to i) the impact of demonetisation (did not avail regulatory
dispensation on NPA recognition to the tune of Rs.62 core); ii) reverse amortization; and iii) a change in the collection
policy. However, we do not foresee any material risk to the asset quality due to its retail nature of lending.
Valuations: We have revised our growth and margin estimates for FY17 and FY18. With the growth momentum
accelerating and a respectable returns profile, we believe valuations at 1.5x FY19E adjusted book value (ABV) merit due
consideration.
Technical Outlook: The GIC Housing Finance Ltd stock looks good on the daily chart for medium-term investment. It
has formed a saucer pattern and is testing the neckline with strong volumes. The stock trades above all moving averages
like the 200 DMA.
Start accumulating at this level of Rs.302.40 and on dips to Rs.280 for medium-to-long-term investment and a possible
price target of Rs.350+ in the next 6 months.
GURU SPEAK
Long-term trend is bullish
The stock market turned indecisive ever since week before last on fears of the US Fed rate hike
meeting this week and the election results of five states due on Saturday, 11 March 2017, after
the close of trading last week. Both bulls and bears kept away rather than enlarge their
commitment in these days of uncertainty.
CNX Nifty 9000 is proving to be a crucial resistance level for the bulls as it needs to be crossed
decisively having consumed almost two weeks moving around this level. The BSE Sensex, which
By G. S. Roongta hit a high of 29145.61 week before last ended Friday, 3 March 2017, hovered around the 29K
level thereafter while the CNX Nifty was around 8900. Finally, the BSE Sensex closed in the
negative territory by 60 points on a week-to-week basis at 28832 i.e. lower by 313 points from the weeks high. This led
the technical analysts to turn bearish, which is quite evident from their calls on TV channels as well as in print media.
The Hindu Business Line reported in its weekly review on Monday, 6 March 2017, on page 9 in its Index Outlook column
headlined Early signs of weakness:- Last week, the Nifty 50 index was volatile and traded below the key psychological
resistance level of 9,000. This week, short-term investors should be alert. If the index continues to show signs of
weakness, then, investors can take some profits off the table and hold the rest with a stop loss at 8800. Slump below this
base level can pull the index down to 8725 and then to 8600 in the coming weeks. On the upside, a decisive break-out of
the significant resistance level of 9000 can take the index upwards to 9119 or 9172 in the short-term.
Thus, there was no clear message but the analyst mainly directs his bias towards the lower side.
Bulls are hopeful of the CNX Nifty inching towards 9300 in spite of two important issues the state elections outcome
and the US Fed meeting. This is why the markets remained continued to be rangebound last week with CNX Nifty close
to 8900 and BSE Sensex at 29K despite the two-way volatility throughout the week.
Despite fears, the BSE Sensex opened higher by 28 points on Monday, 6 March 2017, against the week before last closing
28832 and rallied higher to 29070.2 in intra-day trades and closed high gaining 216 points at 29048 followed by the
CNX Nifty that gained 66 points at 8963.45, thus trailing by 37 points from the psychological level of 9000.
In spite of this, the commentary of analysts was mainly biased towards the lower side for rest of the week, which gives
an impression that analysts are not sure whether the markets will maintain the bullish tempo going ahead. According to
them, the CNX Nifty 9000 level is proving to be a jinx lately recording a negative closing for the sixth session (out of
eight) on Wednesday, 8 March 2017, and the index has formed a pattern similar to the Hammer on the daily chart.

It is so difficult to understand their expressions whether to go short or long. As stated last week, marginal investors with
no appetite to hold long positions had to incur losses as their stop losses were triggered on Monday itself when the
market rallied over 66 points higher against the shorting the week before.
The markets traded rangebound on subsequent days with volatility within 100 points on the BSE Sensex and 30-40
points on the CNX Nifty index as the BSE Sensex recorded a high/low of 28986.72/28815.02 while closing at 28929.13
gaining 27 points at the end of the day on Thursday, 9 March 2017, followed by CNX Nifty settling at 8927 gaining only
2.7 points.
This clearly indicates that both bulls and bears are in a fix and indecisive about the future course of action until the state
elections results are out. According to the exit polls survey so far, the BJP is winning three states with a clear majority in
UP. If that turns true, the market is likely to cross the crucial level of Nifty 9000 this week. Grey market speculation for
BJPs victory is quoted at a lower premium v/s SP & BSP by over 50-60%. This means, if you bet on BJP, you will get
Rs.25 out of Rs.100 and if you bet on SP/Congress or BSP, you get Rs.175.
FIIs continued to pump in fresh funds almost every day right from 2nd to 9th March 2017 while DIIs turned sellers. This
shows that fears of the US Fed rate hike had no negative impact on the FIIs flow of funds, which is a positive sign.
Related Developments:
1) Chief Minister Fadnavis has declared that the BJP would not contest the mayoral elections to the BMC but support
Shiv Sena mayoral candidate Vishwanath Mahadeshwar. The Chief Minister has acted wisely to cool down the Shiv
Sena instead of inviting trouble for his ministry in the Maharashtra Assembly.
2) Bourses step up vigil on 774 rising penny stocks to check whether the recent surge in stock prices was
commensurate with their financial health and fundamentals.
3) Top four companies market cap swelled by Rs.35876 crore with RIL cornering bulk of the surge in share prices.
4) The Tata-Mistry legal battle turned in favour of Ratan Tata who has asked SEBI to investigate possible violation of
insider trading norms by ousted Chairman Cyrus Mistry. This is a positive and Tata group stocks, which were beaten
down, might turn bullish if the stock market rallies in the days to come.
5) Banks have initiated to load extra charges on account holders in case of cash withdrawals more than five times in a
month and also maintain compulsory minimum balance, which is against the interest of small account holders. The
government must come forward to stop such loot by banks from their customers. Apart from this, these banks levy
several other charges in cases of cheque return, issue of cheque books, etc.
6) Several big IPOs are lined up to mobilize large amounts from the primary market. The D-Mart and Music Broadcast
IPOs received superb over subscriptions.
Global markets are at all-time highs with Dow Mid-caps or Mad-caps?
Jones close to 20900, FTSE at 7275, CAC at 4950,
DAX at 11936 and Hang Sang at 23500. It is only
2017 will be watershed year in the history of stock
the Indian indices that are trailing behind their market as it takes off from a weak closure of 2016.
all-time highs despite a better economic outlook Leading the charge will be the Mid-caps that are
compared to them. But for how long will they lag
likely to outperform the large-caps or index stocks.
behind? It is indeed a great irony that the Indian
markets are still struggling to cross their all-time Another forecast made by Mr. G.S. Roongta.
highs in spite of overcoming hurdles like To encash this opportunity, Money Times will launch
demonetisation, fears of the US Fed rate hike, RBI Roongtas Mid-cap Twins comprising two mid-cap
Monetary Policy and political disturbances.
recommendation every month beginning with 1st
Stock-specific actions are witnessed in the August 2016.
markets every day. Sectors such as Automobile,
Steel, Fertilizers, Sugar and Engineering continue Attractively priced at Rs.2000 per month, Rs.11000
to gain momentum and are likely to be the best half yearly and Rs.20,000 annually, Roongtas Mid-
performers in FY17. cap Twins will be available both as print edition or
On Thursday, 9 March 2017, Maruti Suzuki online delivery.
gained 100 points at Rs.5964.40. State Bank of
India, Axis Bank, Housing Development Finance Latest edition of Mid-Cap Twins was released on
Corporation, HDFC Bank, Bank of Baroda
1st March 2017
continued to be in the green despite the
rangebound market. Tata Motors, which went Please book your subscription
bearish a fortnight ago on its Q3 results, is

gaining ground in view of its bright future outlook and closed at Rs.468. Cement stocks have, of course, pared some
losses recently on profit-booking but there is no reason for them to remain under pressure. ACC, India Cements,
Ultratech Cement, JK Lakshmi Cement and Prism Cement look very attractive. Sugar stocks, too, look good for bargain
hunting in a falling market. Andhra Sugars at Rs.260, Ugar Sugar Works at Rs.34 are good buys. Hindalco Industries
shows good signs of further appreciation at Rs.185-190 and its Q4 results are expected to be extremely good. Among
steel stocks, Tata Steel, Steel Authority of India and Sarda Energy & Minerals are extremely attractive if the market faces
correction from its current level. Dish TV India, as I stated earlier, has bounced back to a high of Rs.105.
Several stocks recommended in the Mid-Cap Twins newsletter are making highs in a falling market. Prominent among
them are - Ajmera Realty Infra & India Ltd up at Rs.203.8 rising 49% and Greaves Cotton at Rs.169 gaining 22% from
their recommended prices four to five months back, which works out to 50-60% on a Y-o-Y basis. Similarly, Assam
Company (India) Ltd recommended in Panchratna gained 47% from its recommended price.
Exit polls were in favour of the BJP in four out of five states with clear majority or close to majority. The bulls took
advantage to open the market steady by over 100 points. The markets remained in the green for most of the day, but it
attracted profit-booking at higher levels turning into the red to a low of 28851 in intra-day trades. But the two-way
market volatility brought back the market to over 29K again. Thus, the markets witnessed rangebound trading between
100-150 points for the BSE Sensex and 40-50 points for the CNX Nifty.
Thus, the Assembly election fears looks to be over hinting that if the BJP wins, the market could rally further by 200-300
points while lack of majority might lead to a sharp correction of 500-700 points by way of bull unloading cum short
selling by bears ahead of the US Fed rate hike fears. If that happens, the market may face correction and if the rate hike
does not materialize, then the market after some consolidation might bounce back.
Thus, next week will be a turning point, which warrants caution for the time being. The long-term trend, however,
remains bullish.
STOCK WATCH
By Amit Kumar Gupta
Finolex Industries Ltd

(BSE: 500940) (CMP: Rs.530.75) (FV: Rs.10) (TGT: Rs.600+)
Finolex Industries Ltd (FIL) manufactures polyvinyl chloride (PVC) pipes and fittings and PVC resins. It operates in the
PVC Pipes & fittings and Power segments. It offers its products in the following categories - Agricultural Pipes and
Fittings; and Plumbing and Sanitation Pipes and Fittings. Its products include Underground Sewerage Pipes, Female
Threaded Adaptor, Service Saddle, Fabricated Repair Coupler and Screen Pipes with Ribs. It offers chlorinated PVC
(CPVC) pipes and fittings such as CPVC Pipes, Compact Ball Valve, Coupler, Cross Tee, Transition Bush, Reducing Elbow,
Tank Nipple, Step Over Bend, Male Threaded Adaptor and others. Its PVC pipes and fittings are available in various sizes,
pressure classes and diameters that are used in agriculture, housing, telecommunications and construction industries.
Its manufacturing plants are located in Pune, Ratnagiri in Maharashtra and Masar near Vadodara in Gujarat.
Although the Company cut down production of pipes as an immediate response to demonetisation, the management
remains bullish on the overall prospects of its Pipes/Fittings businesses. The vast market potential (~Rs.11,000 crore
Agri / ~Rs.7000 crore housing pipes is estimated to grow at ~15% CAGR) and the renewed emphasis on the
agriculture/ affordable housing industries in the Union Budget would augur well for PVC pipe manufacturers like FIL. It
expects to add ~50,000 TPA pipes & fittings capacity (from ~30,000 TPA earlier) at a capex of Rs.50 crore over the next
two years. Although FY17 is likely to be a blip to volume growth (9MFY17 growth was negative at 3%), the management
is confident that volume growth will pick up around 12-15% level from FY18 onwards.
Being a largely agri pipe centric cash-and-carry business with high exposure to end-consumers, FIL was hit hard by
demonetisation. The month of November 2016 was particularly bad in the immediate aftermath of demonetisation
before gradually picking up pace by mid-December 2016. The month of January 2017 was better in terms of sales
volumes but is still below the management's expectations as compared to pre-demonetisation days.
For Q3FY17, FIL's PVC Pipe volumes were at ~38,000 MT (-3.9% Y-o-Y) while PVC external resin volumes declined
15.6% Y-o-Y to ~25,000 MT. PVC fittings volumes grew marginally by 1% Y-o-Y to ~3,300 MT. Although volumes
declined, top-line/EBITDA grew 5.7%/54.3% Y-o-Y largely on healthy PVC realization. During the quarter, the PVC-EDC
spread averaged ~$700/MT (all-time high levels), wherein PVC prices averaged ~$980/MT. As a result, overall EBITDA
margin grew ~700 bps Y-o-Y to 22.5%, pulled up entirely by the PVC resin segment. The PVC Pipes & Fittings EBIT

margin, however, declined ~90 bps Y-o-Y to 7.7% as the high PVC prices were not entirely passed on in the weak
demand situation post demonetisation. In Q4, so far, PVC-EDC spread has come off to ~$660/MT.
Technical Outlook: The Finolex Industries Ltd stock looks very good on the daily chart for medium-term investment. It
is moving in a strong uptrend and any correction in its share price may be used for accumulation. The stock trades near
its 200 DMA level.
******
Reliance Infrastructure Ltd

(BSE Code: 500390) (CMP: Rs.565.15) (FV: Rs.10) (TGT: Rs.625+)
Reliance Infrastructure Ltd (R-Infra) is an infrastructure and utility company with presence in power businesses such as
generation, transmission, distribution and power trading. It operates through two segments: Power and Engineering,
Procurement, Construction (EPC) and Contracts. Through the power segment, it operates a 500 MW Thermal Power
Station at Dahanu, 220 MW combined cycle power plant at Samalkot, 48 MW combined cycle power plant at Mormugao
and 9.39 MW Windfarm at Chitradurga. It also purchases power from third parties and supplies it through its own
distribution grid. Its EPC and Contracts segment renders services in construction, erection and commissioning. Its
projects include coal-based thermal power projects, gas-based combined cycle power projects, solar photo-voltaic and
solar thermal, hydro-electric power projects, co-generation plants and rural electrification works.
RInfra in recent conference calls (con calls) highlighted its focus going forward will be on - i) Power; ii) EPC; and iii)
Defence sectors. It wholly-owned subsidiary - Reliance Defence Ltd (RDL) explores Defence opportunities in the
domestic market. As part of this strategy, RInfra recently completed its acquisition of 51% stake in Pipavav Defence and
Offshore Engineering Co. Ltd (renamed as Reliance Defence and Engineering Ltd).
To cater to emerging opportunities, RDL in the last few quarters
incorporated 11 subsidiaries - i) Reliance SED; ii) Reliance Seminars on Financial Literacy
Propulsion Systems; iii) Reliance Space; iv) Reliance Defence
Infra; v) Reliance Defence & Aerospace; vi) Reliance Land Stock Market
Systems; vii) Reliance Naval Systems; viii) Reliance Unmanned Place Date Time Venue
Systems; ix) Reliance Aerostructure; x) Reliance Helicopters; Aurangabad 16/03/17 10 a.m. Only for Govt Staff
and xi) Reliance Defence Technologies. Vashi 18/03/17 3.30 p.m. Abhyudaya Co-Op
In order to explain its foray into the Defence vertical and (Mumbai) Bank, Head Office
st
completion of 51% stake in Reliance Defence & Engineering Ltd, Hall, 1 Floor, Vashi,
RInfra hosted an Analyst Meet to outline the Companys long Navi Mumbai
term growth prospects. The entire topmanagement was gung Vile-Parle 19/03/17 11 a.m. Lokmanya Seva
ho about the next 15 years Defence capital outlay, which in their (Mumbai) Sangh, Ram Mandir
view has the potential of $250 bn (~Rs.15,40,000 crore). RInfra Road, Vile Parle-East
and its subsidiaries have acquired 27 Industrial Licenses. RDL Papadi 25/03/17 5 p.m. Jeshtha Nagarik
has tiedup with over a dozen global defence OEMs (original Sangh, Near TB
equipment manufacturers) in order to build and scale up College, Papadi (Dist.
capabilities across Air, Land and Sea subverticals. Palghar)
Investors in the last few quarters has been concerned about R Santacruz 26/03/17 4 p.m. Sane Gurujee
Infras i) inexperience in the Defence sector; ii) rising balance (Mumbai) Vidyalaya, S V Road,
sheet (BS) stress to meet the capital intensity of the sector; and Santacruz-West
iii) lack of technology access. Addressing the first point, the Chandrashekhar Thakur: CDSL BO Protection Fund.
management highlighted that i) they have a team of 2,000 Tel: 9820389051; csthakur@cdslindia.com;
th
experienced professionals led by a strong management team of BSE Building, 16 Floor, Dalal Street, Fort,
200 with diverse background; ii) the Company has already Mumbai - 400001
bought 51% stake in RDEL (has assets worth Rs.10,000 crore); iii) With minimal capex, RDEL can drive the next leg of
growth in the Naval business (it has formed over 12 JVs/MoUs/Strategic Alliances across all the 3 subverticals, which
indicates their readiness to tap all the offset obligations opportunities and has acquired 27 Industrial licenses, the
maximum by any Defence company in India). All these initiatives by the management indicate that it is geared to take up
opportunities worth $250 bn over the next 15 years.

Technical Outlook: The Reliance Infrastructure Ltd stock looks very good on the daily chart for medium-term
investment. It has broken out of the rounding bottom pattern on the weekly chart. The stock trades above all important
DMA levels on the daily chart.
STOCK PICK
NMDC Ltd
(BSE Code: 526371) (CMP: Rs.139.85) (FV: Re.1)
By Laxmikant Bhole
Incorporated in 1958, NMDC (formerly Natural Mineral Development Corporation Ltd) is a Navratna PSU and operates
under the Ministry of Steel, GoI. It is the largest iron ore producer by volume in India. It is engaged in the exploration of a
range of minerals such as iron ore, rock phosphate, lime stone, copper, tungsten, gypsum, graphite, etc. It owns three
fully functional mines viz. Bailadila Deposit - 14/11 C, Bailadila Deposit-5, 10/11A in Chhattisgarh and Donimalai iron
ore mines in Karnataka with a total capacity of 30 MMTPA. India is estimated to have 8% of total iron ore capacity, ranks
4th globally in terms of iron ore production and NMDC is the countrys single largest iron ore producer and exporter.
Driven by the growing infrastructure development and rising demand for automotive, steel consumption in India is
expected to rise exponentially over the next 2-3 years. Growth in the Indian steel sector is driven by the availability of
raw materials such as iron ore and cost-effective labour. Q3FY17 GDP numbers were announced last week with the
mining sector contributing significantly (7.5% v/s -1.5% Q-o-Q). All these parameters indicate that the mining sector is
picking up, which will benefit companies like NMDC immensely.
Financial Performance: NMDCs performance has
improved significantly in Q3FY17 over Q2 on the Free 2-day trial of Live Market Intra-day Calls
domestic market as well as exports, which 49% to 7.82 A running commentary of intra-day trading
lakh tonnes (LT) from 5.25 LT in Q2FY17 while recommendations with buy/sell levels, targets, stop loss on
domestic sales grew 24% to 92.73 LT from 74.88 LT in your mobile every trading day of the moth along with pre-
Q2FY17. Turnover during the quarter grew from market notes via email for Rs.4000 per month.
Rs.1739 crore in Q2FY17 to Rs.2498 crore. Its 9MFY17 Contact Money Times on 022-22616970 or
performance was significantly better especially with
moneytimes.support@gmail.com to register for a free trial.
439% higher exports of 20.54 LT. Operating profit rose
to Rs.2503 crore from Rs.2181 crore in 9MFY16 while
PAT fell marginally to Rs.2077 crore from Rs.2253 crore in 9MFY16.
NMDC is virtually debt-free and declared an interim dividend of Rs.4.15/share last week. Currently, the stock is available
cum-dividend (record date - 18 March 2017). In FY16, it declared a total dividend of Rs.12.3, which translates into a
healthy dividend yield of 8.8% at the CMP. Its share book value stands at Rs.94.
Conclusion: The global trend of iron ore prices is upward and is expected to continue over the next few years as well.
NMDC raised iron ore prices in November 2016 and January 2017 and will benefit from these price hikes going forward.
Looking at the strong domestic as well as overseas demand, the stock is worth buying at the current level of Rs.139.85
for handsome gains over the next 9-12 months.
Disclosure: Have a holding in the stock.
STOCK SCAN
Ganesh Housing Corporation Ltd: Hidden gem
By Vijay Gadgil
Ahmedabad-based Ganesh Housing Corporation Ltd (Ganesh Housing) is a real estate developer engaged in construction
and real estate development activities. It is involved in the construction of residential and commercial complexes, real
estate development and infrastructure development business. It has developed and sold over 20 million sq.ft. of real
estate space. Its residential projects include Malabar County, Sundarvan Epitome, Maple County, Maple County II,

Suyojan, Satva, Shangri-La-I, Shangri-La-II, Mahalaya I, Mahalaya II, Maniratnam Bunglows, Maniratnam Bunglows II and
Ratnam Apartments. Its commercial projects include Magnet Corporate Park and GCP Business Centre. Its mega projects
include Smile City and Million Minds. Its subsidiaries are Essem Infra Pvt Ltd, Gatil Properties Pvt Ltd, Yash Organiser
Pvt Ltd, Shaily Infrastructure Pvt Ltd and Maheshwari (Thaltej) Complex Pvt Ltd.
The promoters hold 56.25% of the equity capital of which 10.74% is pledged. Shekhar Patel, Dipak Patel and family
members hold the majority stake in the Company.
Operations: For FY16, Ganesh Housing posted higher net profit of Rs.60.77 crore as against Rs.55.21 crore in FY15 on
higher sales of Rs.308.67 crore as against Rs.251.29 crore in FY15. During Q3FY17, it posted higher net profit of Rs.12.24
crore as against Rs.15.47 crore in Q3FY16 on marginally lower sales of Rs.75.7 crore as against Rs.78.07 crore in
Q3FY16. In spite of the demonetisation issue, the Company posted decent results.
Financials: With an equity capital of Rs.32.67 crore and reserves of Rs.738.4 crore, its share book value works out to
Rs.236 as at 31 March 2016. Secured loans and unsecured loans were Rs.381.4 crore and Rs.112.71 crore respectively.
Its equity has increased to Rs.49 crore consequent to a bonus issue in July 2016.
Dividend: The Company has paid dividends consistently since 2005 in the range of 14-45%. Its track record of the last
five years is as follows -
FY16 - 20%; FY15 - 26%; FY14 26%; FY13 14%; FY12 12%
Bonus & Rights Issue: The Company issued a 2:1 bonus in 2005 and another one in the ratio of 1:2 in 2016. In 1996, it
offered a 1:2 rights issue at a premium of Rs.10.
Extracts from the Chairmans speech on 30/09/2016:
1) 2015-16 was an exceptional year for your Company. During the year, work progressed as per plan in all the on-
going projects of the Company - two residential and two commercial. Upon completion, the total monetisation value
of these two projects is in the vicinity of almost Rs.2000 crore.
2) We are amongst the largest landowners in Ahmedabad with over 640 acres of low-cost and ready-to-develop land.
In addition to the four on-going projects, we have plans of launching seven more projects. These include: Smile City-I
(Phase I & II), Malabar County III & IV, Magnet Trade Centre and Million Minds Phases I & II. Our two mega projects
i.e. Million Minds (IT-SEZ) and Smile City are amongst our most ambitious projects till date. In other words, an
exciting time ahead for us!
Conclusion: Ganesh Housing is a profit-making and dividend-paying company that has declared 2 bonus issues in the
last twelve years. For FY17, it is likely to achieve a turnover of Rs.300 crore with net profit of Rs.48-50 crore, which
translates into an EPS of Rs.10 and P/E of just 6.8x as compared to the Industry P/E of 26.19x. Thus, this is certainly an
under-priced stock which deserves a higher P/E of around 15x.
Ganesh Housing has an exciting future and plans to execute construction projects of 22.47 million sq.ft. i.e. 2.247 crore
sq.ft. in Ahmedabad and the rate per sq.ft. is Rs.4000. So, you can expect a turnover of around Rs.8000-10000 crore in
the next five years with favourable budget proposals for the affordable housing segment. This investment gem has been
overlooked by the market. I have a Buy on the stock for a price target of Rs.120 in the short-term and Rs.250+ in the
long-term. The stocks 52-week high/low is Rs.93/58.30.
SMART PICKS
Market awaits events for reaction
By Rohan Nalawade
In our previous edition, we had rightly stated that 8860-8939 was a very crucial range as the Nifty moved near these
power points for a major part of last week. A close below 8860 would have created a panic in the market but the Nifty
sustained above the 8927 level, which showed a positive momentum for the market towards a new high. Now, a closing
above 8980 will move the Nifty in the higher territory for 9100-9300 levels.
The outcome of the five state elections will play a key role in deciding the future course of action. If the BJP wins in Uttar
Pradesh, we could see Nifty inching towards the 9100 level.
Overall, its good news for the BJP as its total tally of seats has increased in India, which is a positive sign.
The US Federal meet on 14-15 March 2017, can be a major hurdle for the market. There is a possibility of a rate hike as
the overall US economy and job data is improving. Even if the US Federal hikes rates, there will be a minor reaction and

every dip must be used as a buying opportunity. After this event, there are no negative events till June 2017. Hence, buy
on dips.
The GST bill will mostly be passed in this Parliament session, which is a positive trigger. This coupled with a good
monsoon will lead to an overall growth of the Indian economy in 2017 and 2018. So, a bull rally is down the line for Nifty
9600-10300.
Among stocks,
Buy Ambuja Cements above Rs.227 for a price target of Rs.238-240
Buy Gati above Rs.124 for a price target of Rs.135
Buy Tata Motors above Rs.468 for a price target of Rs.503
Buy Jindal Steel & Power above Rs.124 for a price target of Rs.132-135.
MARKET REVIEW
US Fed to dictate market trend
By Devendra A Singh
The BSE Sensex gained 113.78 points to settle at 28,946.23 and the NSE Nifty closed at 8,934.55 rising 37 points for the
week ending Friday, 10 March 2017.
On the macro-economic front, the Services Purchasing Managers Index (PMI) in India came in at 50.3 in February 2017
up from 48.7 in January 2017.
India Manufacturing Purchasing Managers Index (PMI) was up to 50.7 in February 2017 from 50.4 in January 2017.
Indias dominant services industry returned to growth in February 2017 for the first time in four months as demand
slowly recovered after the government's cash crackdown late last year, a business survey showed.
The Markit Services Purchasing Managers Index rose to 50.3 in February 2017 from 48.7 in January 2017.
The index slumped to a near-three year low in November after Prime Minister Narendra Modis surprise decision to
outlaw old Rs.500 and Rs.1,000 banknotes to crack down on black money and tax evasion. The decision sucked 86% of
cash out of circulation and everyone from street hawkers to big consumer goods firms suffered a slump in sales.
Service providers reported new business grew for the first
time since October 2016. Though the expansion was modest LIVE MARKET DAILY
they were able to raise their prices to partly offset rising (Nifty, Bank Nifty & Live Market Calls)
costs.
The turnaround in business activity emerged as businesses Identifies intra-day Trading Opportunities and also
recovered from the demonetization-related disruptions seen provides positional calls for a day or two depending
in the previous three months, wrote Pollyanna De Lima, on the range of the target.
economist at IHS Markit, said. Available daily on Live Chat
Nevertheless, growth rates were mild at best and far from Subscription Rate: Rs.4000 per month & Rs.36000 p.a.
their historical averages.
Contact us on 022-22616970 for a FREE 2-Day Trial.
Despite expectations that the cash crunch would exact a
heavy toll on the economy, government data earlier this
week showed economy still grew 7% in the Oct-Dec 2016 quarter from a year earlier, slowing from the previous quarter
but not as sharply as some had expected.
This raised questions about the quality of government data, and prompted economists to look to other measures to
gauge the strength of activity.
So far, firms are doubtful about the sustainability of the economic recovery. It is still too early to state that expansion
rate will climb to their trend levels in the near term, De Lima said.
Doubts about the strength of the economic recovery and rising prices are also likely to reinforce the Reserve Bank of
Indias latest move to hold interest rates steady and change its policy stance to neutral from accommodative.
Asian Development Bank (ADB) stated that developing Asia needs around $1.7 trillion of investment per year till 2030 to
keep its growth momentum going to help the region reduce poverty and fight climate change effectively.

The investment needs without adjusting climate change and adaptation costs will be a little less at $22.6 trillion, or $1.5
trillion per year, through 2030. The $1.7 trillion annual climate-adjusted estimate is more than double the $750 billion
that ADB had estimated in 2009.
In its flagship report Meeting Asias Infrastructure Needs, the ADB said regulatory and institutional reforms are needed
to make infrastructure more attractive to private investors and generate a pipeline of bankable projects for public-
private partnerships (PPPs).
Countries should implement PPP-related reforms such as enacting PPP laws, streamlining PPP procurement and
bidding processes introducing dispute resolution mechanisms and establishing independent PPP government units,
said the report.
Deepening of capital markets is also needed to help
channel the regions substantial savings into productive
infrastructure investment, ADB said.
Relative Strength (RS)
The report focuses on regions power, transport, water, Signals a stocks ability to perform in a dynamic
telecommunication and sanitation infrastructure. The market
demand for infrastructure across Asia and the Pacific
far outstrips current supply, said ADB President Knowledge of it can lead you to profits
Takehiko Nakao.
POWER OF RS - at 3100 for 1 year:
Asia needs new and upgraded infrastructure that will
set the standard for quality, encourage economic What you get
growth, and respond to the pressing global challenge
that is climate change, he added. Most Important- Association for 1 year at 3100
Public finance reforms could generate additional 1-2 buy / sell per day for day on daily basis
revenues estimated to bridge around 40% of the gap
(or 2% of GDP) for these 24 economies, the ADB report 1 buy per week
added. 1 buy per month
Indias unemployment rate halved from 9.5% in August
2016 to 4.8% in February 2017 and among major 1 buy per quarter
states. 1 buy per year
According to the SBI Ecoflash, during August 2016 to
February 2017, unemployment rate in Uttar Pradesh For more details, contact Money Times on
registered the maximum decline from 17.1% to 2.9%, 022-22616970/4805 or
followed by Madhya Pradesh (10% to 2.7%), Jharkhand
moneytimes.support@gmail.com.
(9.5% to 3.1%), Odisha (10.2% to 2.9%) and Bihar
(13% to 3.7%).
The report compiled by State Bank of India research team led by Group Chief Economic Advisor, Soumya Kanti Ghosh,
said we believe this decline is primarily due to the governments efforts in providing new employment opportunities in
rural areas.
The report further noted that the decline was also explained by household demanded/allocated work under MGNREGA
which increased from 83 lakh households in October 2016 to 167 lakh households in February 2017.
Moreover, the number of works completed under MGNREGA increased by a whopping 40% to 50.5 lakh in 2016-17
compared to 36 lakh in 2015-16. In the Union Budget FY18, MGNREGA scheme has been allocated a budgetary resource
of Rs.48,000 crore.
Key index advanced on Monday, 6 March 2017 on buying of equities. The Sensex gained 215.74 points (+0.75%) to close
at 29,048.19.
Key index was down on Tuesday, 7 March 2017. The Sensex fell 48.63 points (-0.17%) to close at 28,999.56.
Key index fell on Wednesday, 8 March 2017 on selling due to local cues. The Sensex plunged 97.62 points (-0.34%) to
close at 28,901.94.
Key index ended up on Thursday, 9 March 2017 on marginal buying of equities. The Sensex was up 27.19 points
(+0.09%) to close at 28,929.13.
Key index settled higher on Friday, 10 March 2017 ahead of assembly elections results due on Saturday, 11 March 2017.
The Sensex was up 17.10 points (+0.06%) to close at 28,946.23.

For future events national & global macro-economic figures will surely dictate global markets movements and influence
investors sentiment in near future.
The stock markets will be closed on Monday, 13 March 2017 on account of Holi.
Global financial markets will react to the crucial decision related to Feds interest this week. The US Federal Reserve is
scheduled to reveal interest rate decision on Wednesday, 15 March 2017.
The US Feds next policy-meet is scheduled for 14-15 March 2017. The Federal Open Market Committee (FOMC) will
unveil its statement after the meeting on Wednesday, 15 March 2017.
EXPERT EYE
By Vihari
Eimco Elecon (India) Ltd: Mining fortunes

The stock can be bought for decent gains on account of its improving results. In addition, the Companys spares business,
which is a high margin business, provides a stable cash flow and contributes around 50% to overall sales. Further,
introduction of new products and entry into open cast mining products will act as a key catalyst for growth. The
Company has a strong balance sheet with liquid investment of Rs.203/share.
Eimco Elecon (India) Ltd (EEL) was incorporated in 1974 and went public in 1992. Its 15 acre manufacturing plant is
situated at Vallabh Vidyanagar in Anand district of Gujarat. Its wide product range includes mining and construction
equipment developed with indigenous technology as well as through collaboration/joint venture agreements with
leading manufacturers of the world. Its product portfolio includes Side Dump Loader, Load Haul Dumper, Coal Hauler,
Universal Drill Machine, Articulated Wheel Loader, Low Profile Dump Truck, Rocker Shovel Loader and Chair Lift Man
Riding System.
EEL was first to introduce the intermediate technology of Side Dump Loaders (SDLs), Load Haul Dumpers (LHDs) and
Rocker Shovel Loaders in India to partially mechanize underground coal and metalliferrous mines and continues to be
the market leader since then. The Company is ISO 14001:2004 and BS OHSAS 18001:2007 certified.
Since EEL is into coal loading machinery, its major customer is Coal India (90% of its business is generated from them).
Going forward, the economy is likely to remain in good shape in view of the large infra spending by the government and
as such Coal India will be able to improve its performance tremendously, which in turn will enormously benefit EEL.
When EEL sell machines, it also enters into contracts for its maintenance as well as for spare parts. During FY16, 62% of
its top-line had come from spare parts, which is a high margin business and fetches a regular annuity business.
For FY16, EEL posted consolidated net profit of Rs.17.1 crore on sales of Rs.138.8 crore fetching an EPS of Rs.29.6 and a
dividend of 50% was paid. During Q3FY17, its net profit soared 72% to Rs.4.6 crore on 53% higher sales of Rs.52.3 crore
fetching an EPS of Rs.7.9. During 9MFY17, its net profit rose 13% to Rs.9.4 crore on 24% higher sales of Rs.118.4 crore
fetching an EPS of Rs.16.3.
EEL is a zero debt company. With a small equity capital of Rs.5.8 crore and reserves of Rs.216.4 crore, its consolidated
share book value works out to Rs.385. The value of its gross block is Rs.106 crore and cash and loans given etc. are Rs.13
crore. The Indian promoters hold 49.1% of the equity capital, Sandvik Asia holds 25%, DIs hold 4.8% and PCBs hold
3.3%, which leaves 17.8% stake with the investing public.
The global underground mining industry is expected to grow at ~7% CAGR over the next three years. The global
underground mining equipment market is expected to grow to $24 billion by 2019 on the back of proactive changes in
energy efficiency regulations undertaken by various governments across the globe. This has given an impetus to mining
companies for adopting energy efficient underground mining equipment.
India is focused on transforming the ailing coal sector. The government has announced plans to boost Coal Indias
annual production to 1 billion tonnes by 2019 and this requires significant investment in mechanization of existing
mines and fast tracking mine development activity in newer mines.
Opencast mining dominates the mining scenario in CIL as it produces over 91% of the coal produced by CIL. The reasons
are growing demand, easier mining method where geo-mining adversities have much lesser impact, availability of bulk
handling machineries, etc.
Since infrastructure acts as a catalyst in the industrial and the overall growth of the nation, this sector has always been
on the priority agenda of the government. With the governments renewed impetus on infrastructure, the construction

equipment industry is poised for tremendous growth in the years to come. The need for timely execution of
infrastructure projects and emphasis on qualitative approach will act as growth drivers for the construction equipment
market. Growing urbanization and rising affordability will further spur the demand and availability of financing
construction equipments.
The government has proposed $1 trillion of investment in infrastructure projects in the 12th Five Year Plan. Based on the
recent projections, the Earthmoving and Construction Equipment (ECE) market is expected to grow 15-20% over the
next few years.
With the expected
off-take of road BEAT THE STREET 6
projects, EELs
Model AL-120, a Our stock recommendations in the 15th edition of Beat the Street 6 published on 7th
mid-sized Wheel
December 2016, have fetched 10-90% returns in a short span of just two months.
Loader with bucket
capacity of 1.21.6
cum, will find its Bumper returns from the 15th edition of Beat the Street 6 published on 07/12/16
place because of its Scrip Name Recomm. Rate (Rs.) Achieved Rate (Rs.) % Gain
superior features Datamatics Global Services 87.45 164.85 89%
among similar Chennai Petroleum Corporation 264.90 396.20 50%
equipments used Deep Industries 251.50 332.95 32%
by construction Adani Ports & Special Economic Zone 272.05 315.80 16%
companies. Further Power Grid Corporation of India 182.90 208.85 14%
improvement in its Alkem Laboratories 1695 2028 20%
distribution
network will help Steady returns from the 14th edition of Beat the Street 6 published on 06/09/16
spread this product Scrip Name Recomm. Rate (Rs.) Achieved Rate (Rs.) % Gain
across the nation. PPAP Automotive 159 214.50 35%
EEL has also Exide Industries 189.55 218 15%
launched a higher Indiabulls Housing Finance (ABP) 833.05 895 7%
capacity Loader
Reliance Industries 1020.45 1128.90 11%
AL-520 with
NCC 88.35 95.65 8%
bucket capacity of
Mahindra & Mahindra 1489.90 SL 1501.10 1%
1.93 cum. It also
plans to introduce
Skid Steer Loader, Mindblowing returns from the 13th edition of Beat the Street 9 published on 06/06/16
a highly versatile Scrip Name Recomm. Rate (Rs.) Achieved Rate (Rs.) % Gain
machine with Edelweiss Financial Services 70.30 129.10 84%
growth potential Sterlite Technologies (ABP) 90.30 136.70 51%
and used primarily Muthoot Finance 271.45 405.35 49%
in industrial GIC Housing Finance 270.35 354 31%
material handling Indiabulls Housing Finance (ABP) 743.20 895 20%
and infra projects. IOL Chemicals & Pharmaceuticals 127.60 155.95 22%
Also, a Godrej Properties 331 394.80 19%
recommendation Bajaj Auto 2633.25 3122 19%
by a reputed Tata Power Company 74.25 84.80 14%
market survey
agency, which The next issue of Beat the Street 6 was published on 6th March 2017. We have selected 6 strong
conducted a stocks that will yield handsome returns in coming days.
market survey for So dont wait, subscribe to Beat the Street 6 today.
EEL to add
additional product Subscription Rate: 1 Qtr: Rs.2000, 2 Qtrs: Rs.3500, 3 Qtrs: Rs.5000, 4 Qtrs: Rs.6500.
lines in For payment details, refer to the subscription form.
Construction
Equipment Segment, will help it realize its growth objective in the years to follow. EEL is also exploring the export
potential of construction equipments in South East Asia and Africa. The immediate beneficiary of infrastructure and road
developments will be EEL, which is expected to do well in line with the infra spend.

Based on the current going, EEL is likely to notch an EPS of Rs.33 in FY17 and Rs.40 in FY18. At the CMP of Rs.477.10, the
stock trades at a forward P/E of 14.45x on FY17E and 11.92x on FY18E earnings. A reasonable P/E of 18.5x will take its
share price to Rs.610 in the medium-term and Rs.720 thereafter. The stocks 52-week high/low is Rs.532.50/300.10.
*****
Eros International Media Ltd: Gaining ground

The share of Eros International Media Ltd (EIML) can be bought for decent gains on account of its improving
fundamentals.
Founded by Arjan Lulla in 1977, EIML is a leading global company in the Indian film entertainment industry. Currently,
the Company is headed by his sons Kishore Lulla and Sunil Lulla. EIML acquires, co-produces and distributes Indian
films across all available formats such as cinema, television and digital new media. It belongs to Eros International PLC,
which was the first Indian media company to be listed on the New York Stock Exchange.
EIML has experience of over three decades in establishing a global platform for Indian cinema. It has a competitive
advantage through its extensive and growing movie library comprising over 2,000 films, which include Hindi, Tamil and
other regional language films. Eros International has built a dynamic business model by combining the release of new
films every year with the exploitation of its film library.
EIML has an established, multi-channel global distribution network across 50+ countries with a dominant market share
of Indian films globally. Its digital businesses also include the YouTube channel and its distribution via cable based VoD
services called Bollywood Hits on Demand with Cox, Rogers, Cablevision and Time Warner apart from services in the
UK and Middle East.
For FY16, EIMLs net profit fell 13% to Rs.214 crore on 11% higher income of Rs.1583 crore fetching an EPS of Rs.23.
During Q3FY17, its net profit zoomed 170% to Rs.101.2 crore on 1% lower income of Rs.332 crore fetching a
consolidated EPS of Rs.10.9. During the quarter, theatrical revenues contributed 36%, overseas revenues 30% and
television and others 34%. During 9MFY17, its net profit climbed 23% to Rs.223.7 crore on 7% lower income of Rs.1219
crore fetching an EPS of Rs.23.9.
EIML released 8 films during the quarter (15 films in Q3FY16) because the management held back further releases in
the quarter due to the negative impact of demonetisation. The marginal decrease in revenues was on account of a
narrower film slate comprising 3 medium budget and 5 small budget films in Q3FY17 as compared to 1 high budget, 4
medium budget and 10 small budget films during the Q3FY16 offset by comparatively stronger catalogue revenues.
With an equity capital of Rs.93.6 crore and reserves of Rs.1674 crore, its share book value works out to Rs.189 as at 31
March 2016. The promoters hold 73.5% of the equity capital, FIIs hold 11.1%, DIs hold 0.2% and PCBs hold 3.2%, which
leaves 12% stake with the investing public. CARE Ratings has upgraded the Companys rating to A+ (from A) for Long-
Term Debt and A1 (from A2+) for Short-Term Debt. With total debts of Rs.1222 crore, cash of Rs.232 crore, loans and
advances of Rs.232 crore and current assets of Rs.36 crore, its net DER works out to 0.32:1.
Upcoming movies: First Indo-China film, The Zookeeper (working title), a travel drama, to be co-produced with
Chinese Studio Peacock Mountain Culture & Media Ltd will be directed by Kabir Khan, the director of Bajrangi Bhaijaan
and will be shot simultaneously in both the languages. Another Indo-China film, Love in Beijing (working title), a cross-
cultural rom-com, will be coproduced with Huaxia Film Distribution Co Ltd and will be directed by Siddharth Anand and
shot in both languages.
An action franchise with kids is where an underdog becomes a superspy, a first of its kind in India. It is a live action
animal film revolving around an elephant and his bond with humans. This will be shot in two Indian languages. Buddy
cop film, a bilingual gritty action buddy cop film featuring top stars from Hindi and Tamil will be directed by acclaimed
South Director Krish.
Upside swing factors for Eros US would improve FCF (free cash flows) generation, a decline in its receivable days and the
monetization of its stake in Eros Now. Any stake sale in Eros Now to a marquee global investor would significantly
improve the sentiment. Earlier, the market reacted to accounting allegations but is ignoring the potential value creation
by the studio such as for Eros Now, Trinity Pictures and China JV.
Eros Now is Eros International Plcs OTT platform. With 5,000 film rights and 13 Indian music labels providing music
content, Eros Now has over 2 million paid subscribers worldwide with global footprint of users in 135 countries. EIML
expects to get 5 million users by the end of FY18. It has a 5-year target of at least 15-20 million subscribers worldwide
with a blended annual ARPU of $5 from India and $30 internationally with 80% of the target subscribers from India and
the remaining from overseas.

A few months back, Eros Now tied up with Reliance Jio (RJio) to make available old and new movies including Bajrangi
Bhaijaan, Bajirao Mastaani, Tanu Weds Manu Returns, Prem Ratan Dhan Payo, etc. on the JioOnDemand service. It is in
the process of acquiring 10,000+ films to add to its existing library of 5,000 films and launching its original series in
H2FY17. The upcoming line-up includes highly promising projects such as five films from Trinity, two Indo-China co-
productions, a Shahrukh Khan film from Color Yellow, two sequels from own IPs like Vicky Donor-2, Badlapur-2, etc.
A 2,000+ unique and compelling film library, multi-channel global distribution network across 50+ countries, dominant
market share of Indian films globally, portfolio strategy of 50+ films a year across budgets and languages, progressive
adoption of changing technology with the Eros Now digital strategy coupled with a strong and experienced management
team with deep relationships in the Indian film industry give strong revenue and profitability visibility.
Based on its current going, EIML is likely to notch an EPS of Rs.30 in FY17. At the CMP of Rs.200.75, the stock trades at a
forward P/E of just 6.6x. A reasonable P/E of 10x will take its share price to Rs.300 thereby fetching over 49% returns.
The stocks 52-week high/low is Rs.237/150.15.
*******
Talwalkar Better Value Fitness Ltd: For healthy gains

The journey of Talwalkar Better Value Fitness Ltd (TBVFL) started way back in 1932 when Mr. Vishnupant Talwalkar
opened the first gymnasium in Mumbai. Over the years, it not only expanded its network but its services too. Today, it is
Indias largest chain of health centres with 199 ultramodern gyms spanning 80 cities across the country and a growing
customer base that is strong at ~2,00,000. It has acquired 12 gyms in Sri Lanka as well. As of 31 March 2016, it had a
workforce of 5,000 people and a dedicated team to provide periodic training to each fitness centre in South Asia via
online and onsite training.
TBVFL tapped the capital market in 2010 through an IPO of 60.5 lakh shares at Rs.128/share. In FY15, it garnered
Rs.106.75 crore through 35 lakh shares priced at Rs.305/share.
TBVFL has diverse fitness services including standard gymming and fitness, Zumba (aerobics and Latin dance-inspired
fitness programme), Transform (holistic fitness programme), Reduce (diet-based, easy diet programme), NuForm (time-
efficient weight loss programme), Zorba (yoga), spa, massage and aerobics. It has five fitness centres formats - Premium,
Talwalkars, PWG, Hi-Fi and Zorba studios.
Some of its gyms have no air conditioning and
are smaller in size (3,750 sq.ft.). The lower What TF+ subscribers say:
operating costs and rollout time allows for
fees of Rs.6000-8000 p.a. as against Think Investment Think TECHNO FUNDA PLUS
Rs.15000-23000 p.a. for the Talwalkar Techno Funda Plus is a superior version of the Techno Funda
format. This helps the Company improve its column that has recorded near 90% success since launch.
competitive positioning versus unorganized
gyms, which comprise 80% of the market. Every week, Techno Funda Plus identifies three fundamentally
TBVFL has 18 Franchisee agreements under sound and technically strong stocks that can yield handsome
the Hi-Fi format and is in the process to returns against their peers in the short-to-medium term.
negotiate with another 20. It plans to open 5 Most of our recommendations have fetched excellent returns
additional gyms by March 2017 at Jorhat in to our subscribers. Of the 156 stocks recommended between
Assam, Nirman Nagar in Jaipur, Amravati in 11 January 2016 and 2 January 2017 (52 weeks), we booked
Maharashtra, Rewa in Madhya Pradesh and profit in 116 stocks, 26 triggered the stop loss while 14 are
Khammam in Andhra Pradesh. In total, it still open. Of these 14, 9 are in big green while54 are in
plans to own 300 gym outlets (mixed brands) nominal red.
by FY20.
For FY16, TBVFLs net profit rose 19% to If you want to earn like this,
Rs.55.4 crore on 14% higher revenue of subscribe to TECHNO FUNDA PLUS today.
Rs.258.1 crore fetching a consolidated EPS of
Rs.19. During Q3FY17, its net profit rose 14% For more details, contact Money Times on
to Rs.6.2 crore on 11% higher revenue of 022-22616970/4805 or moneytimes.support@gmail.com.
Rs.53.1 crore fetching an EPS of Rs.2.1.
Subscription Rate: 1 month: Rs.2500; 3 months: Rs.6000;
During 9MFY17, its net profit climbed 18% to
Rs.41 crore on 10% higher revenue of 6 months: Rs.11000; 1 year: Rs.18000.

Rs.196.6 crore fetching an EPS of Rs.13.8.
With an equity capital of Rs.29.7 crore and reserves of Rs.397.3 crore, its share book value stood at Rs.144 as at 31
March 2016. With total debts of Rs.362 crore, cash of Rs.141 crore and loans/advances of Rs.51 crore, its net debt works
out to Rs.170 crore and net DER stands at 0.4:1. The value of its gross block was Rs.721 crore including capital WIP of
Rs.83 crore. Investments were Rs.12 crore. The promoters hold 38% of the equity capital, FIIs hold 17%, DIs hold 7.1%
and PCBs hold 13.4%, which leaves 24.5% stake with the investing public.
The growing awareness about fitness and a healthy lifestyle provides a huge opportunity for the health and fitness
industry. Significant changes in lifestyle due to lack of physical activity and increased consumption of fast foods among
both the affluent and working class populations has led to a greater need for healthy lifestyles through sports, fitness
centres and counselling on dietary habits.
Sedentary lifestyles, rising disposable incomes and rising awareness pertaining to healthy lifestyles are major factors
that drive the fitness industry. The sector is set to grow 20-30% Y-o-Y. Along with fitness, a new trend of holistic
wellness is gaining ground within the age group of 20-44. Fitness activities such as Zumba, Aerial Yoga, Pilates, Martial
Arts and Kickboxing are picking up.
India ranks third globally when it comes to obesity. Cardiovascular diseases, hypertension and stress afflict vast swathes
of the population. India also has the highest number of diabetics in the world. There is an urgent need to raise awareness
about the need for staying fit.
TBVFL expects to emerge as the number one player in 10-12 leading cities in India while retaining its dominant
presence in Sri Lanka. Nuform, Reduce, Zumba and Transform activities gained considerable traction during the year
and it plans to further expand these activities to its entire network. Similarly, it plans to roll out Zorba to strategically
cover a larger part of its network.
TBFVL has entered into a 50:50 JV with David Lloyd Leisure Ltd for establishing and managing leisure clubs in India. It is
in the process of setting up its first leisure club in Pune at a cost of Rs.80 crore with a membership capacity of 8,000 and
lifetime membership of around Rs.8 lakh. This club is likely to become operational in FY19.
TBVFL is hiving off its gym and lifestyle business into a separate entity. The demerger will result in singular focus on
each of the resultant companies that will result in value. This will unlock value and provide a pure gym-operating play
for shareholders. Its lifestyle business will offer growth potential in attractive products and growing services such as
free-floor exercises, Nuform, nutritional programs (Reduce) and merchandising. That would include the David Lloyd
Club JV, the value-added services and immovable business assets. It plans to continue to expand its pure gym operations
(revenue: Rs.200 crore), adding 25 gyms yearly under its ownership and more through franchises (under the Hi-Fi
brand). It is relentlessly working towards reduction of its operating cost including the on-going rental reduction drive.
Based on the current going, TBFVL is set to garner an EPS of Rs.22 in FY17 and Rs.27 in FY18. At the CMP of Rs.220.70,
the stock trades at a forward P/E of 10x on FY17E and 8.1x FY18E earnings. A reasonable P/E of 12.5x will take its share
price to Rs.338 in the medium-to-long-term fetching 53% returns. The stocks 52-week high/low is Rs.302.05/182.
TECHNO FUNDA
By Nayan Patel
Makers Laboratories Ltd

(BSE Code: 506919) (CMP: Rs.99.95) (FV: Rs.10) REVIEW
Incorporated in 1984, Mumbai-based Makers Laboratories Prime Urban Development India recommended at
Ltd (MLL) manufactures and sells pharmaceutical products. Rs.33.65 on 20 February 2017, zoomed to Rs.44.5 last
It offers products in various general health therapeutic week fetching 32% returns in just three weeks.
segments including antibiotic, antiinflammatory, analgesic,
antispasmodic, cough and cold control, cardio-diabetic, anti- Cords Cable Industries recommended at Rs.38.2 on 19
allergic, acid regulatory, anthelmintic, tropical October 2015, zoomed to Rs.83.4 last week fetching
antibiotic/antimicrobial, neurotonic, anti-anxiety, 118% returns in less than a year and a half.
tranquiliser, anti-malarial, anti-fungal, anti-emetics and IVP Ltd recommended at Rs.56.35 on 29 June 2015,
anti-nauseants, anti-diarrhoeal, nutritional, injectable and zoomed to Rs.158.95 last week fetching 182% returns
other specialities. Its formulation brands include Duramol, in less than 2 years.
Loroquin, Artemak-AB, Nimuwin, Cofwin and Exylin.

MLL has an equity capital of Rs.4.92 crore supported by reserves of Rs.21.42 crore. The promoters hold 58.37% of the
equity capital, which leaves 41.63% stake with the investing public.
During Q3FY17, MLL posted 92% higher PAT of Financial Performance: (Rs. in crore)
Rs.0.92 crore on marginally higher sales of Rs.13.27
Particulars Q3FY17 Q3FY16 9MFY17 9MFY16 FY16
crore fetching an EPS of Rs.1.87. During 9MFY17, PAT
climbed 33% to Rs.3.25 crore from Rs.2.44 crore in Sales 13.27 13.24 44.56 48.09 62.8
9MFY16 on lower sales of Rs.44.56 crore fetching an PBT 1.18 0.77 4.48 3.8 3.5
EPS of Rs.6.61. One must note that its 9MFY17 PAT of Tax 0.26 0.29 1.23 1.36 1.2
Rs.3.25 crore is 41% higher than its full FY16 PAT of PAT 0.92 0.48 3.25 2.44 2.31
Rs.2.31 crore. The Company paid 10% dividend for EPS (in Rs.) 1.87 0.98 6.61 4.96 4.69
FY16.
Currently, the stock trades at a P/E of just 15.76x and looks quite attractive and undervalued for investment. Investors
can buy this stock with a stop loss of Rs.80. On the upper side, it could zoom to Rs.125 in the short-term and to Rs.155+
in the medium-to-long-term.
******
Phyto Chem (India) Ltd

Incorporated in 1989, Hyderabad-based Phyto Chem (India) Ltd (PCIL) manufactures and markets pesticides for the
agriculture sector. It operates in two segments - Pesticides Formulations and Real Estate. It markets its products
through dealers and distributors and is also involved in real estate activities. Its products include insecticides, synthetic
pyrethroids, fungicides, weedicides, acaricides, plant growth regulators and antibiotics.
PCIL has an equity capital of Rs.4.3 crore supported by reserves of Rs.3.6 crore. The promoters hold 38.06% of the
equity capital, which leaves 61.94% stake with the investing public.
During Q3FY17, PCILs net profit skyrocketed 538% to
Rs.0.51 crore on 96% higher sales of Rs.11.05 crore Financial Performance: (Rs. in crore)
fetching an EPS of Rs.1.19. During 9MFY17, its net profit Particulars Q3FY17 Q3FY16 9MFY17 9MFY16 FY16
skyrocketed 564% to Rs.1.46 crore from Rs.0.22 crore Sales 11.05 5.63 39.46 20.21 23.7
in 9MFY16 on 95% higher sales of Rs.39.46 crore PBT 0.51 0.08 1.46 0.22 0.17
fetching an EPS of Rs.3.4. One must note that its 9MFY17 Tax - - - - 0.06
PAT of Rs.1.46 crore is over 12 times higher than its full PAT 0.51 0.08 1.46 0.22 0.12
FY16 PAT of Rs.0.12 crore. EPS (Rs.) 1.19 0.19 3.4 0.5 0.25
Currently, the stock trades at a P/E of 16.27x and looks attractive for investment at this level. Investors can buy this
stock with a stop loss of Rs.42. On the upper side, it could zoom to Rs.65-70 levels in the short-term.
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Money Times - Weekly Newsletter - Monday, 13 - 19 March 2017

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