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SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 2 Warning :-

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FII Activity (Rs. in Cr.) Date Buy Value Sell Value Net Value 10-09-18 5433.65 6275.33 -841.68 11-09-18 8015.47 9469.83 -1454.36 12-09-18 4219.56 5305.95 -1086.39 13-09-18 Holiday Ganesh Chaturthy 14-09-18 7369.36 6278.8 1090.56 Total 25038.04 27329.91 -2291.87 DII Activity (Rs. in Cr.) 10-09-18 3521.5 3811.16 -289.66 11-09-18 4006.24 3256.62 749.62 12-09-18 3379.78 2838.34 541.44 13-09-18 Holiday Ganesh Chaturthy 14-09-18 3084.35 2969.21 115.14 Total 13991.87 12875.33 1116.54

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SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 6 Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 7 Smart SME Stocks - Dilip K. Shah SME Stocks worth Keeping in Mind

Even amid heavy correction in the market, SME stocks maintained their position, and showed good momentum when market recovered. SME stocks have yielded good returns. Good SME counters can deliver very strong returns in the long-term. Stocks such as Yash Chemex, Meera and Aron have brought SME stocks in the limelight. Filtra Consultants and Engineers (Rs. 26.80) (Code: 539098) (Lot size: 7,500) :- Filtra Consultants and Engineers are connected with water treatment. It provides strategic and technical support to OEMs. It supplies RO plants, and is the authorised dealer for companies making components for water treatment industries. The company has solid fundamentals and can benefit from strong demand in chemical sector. The company has the potential for emerging as a multi-bagger going ahead. The stock had listed on the exchanges in April 2015 at Rs. 42.80 as against the issue price of Rs. 42. The company had announced bonus shares in the ratio of 3:2 in April 2016. It has announced bonus in the ratio of 1:5 recently and has fixed October 4 as the record date. Medico Remedies (Rs. 95.00) (Code: 540937) (Lot size: 1,200) :- Medico Remedies is a pharma formulations company. It makes formulations for anti-infective, beta lactums, cepha- losporins, anti-malarial, anti-retroviral, vitamins, antacids, and other supplements. Investors are best advised not to ignore this future pharma giant. Invest and forget. It has capital of Rs. 4.55 crores and reserves of Rs. 22.52 crores. The debt is Rs. 12 crores and assets at Rs. 38 crores. The share has a book value of Rs. 64. On turnover of Rs. 64 crores, it reported profit of Rs. 1.22 crores. The shares were allotted at Rs. 100 in February, but are trading slightly below that. RKEC Projects (Rs. 89.00) (Code: NSE SME) (Lot size: 1,000) :- Based out of Vishakhapatnam, RKEC Projects has experience of three decades in real estate sector. The company is engaged in execution of projects such as bridges, ports, dams, high-rise structures, airports, roads, oil & gas pipelines, setc. Some of its top clients include defence, railways, Adani Ports, IVRCL, Rashtriya Ispat Nigam, and Essar. The company had issued shares at Rs. 45, which had got listed on the exchange at Rs. 54 in October. The share touched a high of Rs. 182.90, and is now trading at Rs. 89. Looking at the company's large order book, the share can be seen outperforming in the coming days.

Disclosures as per SECURITIES AND EXCCHANGE BOARD OF INDIA (Research Analysts) Regulation, 2014; • I and / or my clients may have investment in this stocks • I/My family have no financial interest or beneficial interest of more than 1% in the company whose stocks I am recommending • Stop loss is useful for Short / Medium Term investor Only • Smart Investment will not be responsible / liable for any loss arising out of investment based on tis advices • Past performance may or may not be substainedin future " (Dilip K. Shah) Research Analyst : SEBI Regn No. : INH000002152 Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 8 Kshitij Polyline Limited launches SME IPO

Kshitij Polyline Limited will issue 25,00,000 Equity shares at Rs.35 per share. It will raise Rs. 875 Lakh from the issue Corporate Feature Issue Details Issue Date : 21st to 27th September, 2018 Issue Price : Rs. 35/- per share Issue size : 25,00,000 Equity Shares of Kshitij Polyline Limited, is engaged in Face Value Rs. 10 business of manufacturing and marketing Total Issue Size : Rs. 875 Lacs. Market Lot size : 4000 equity shares of office stationery, Lamination sheet, PP Promoter’s Stake : post issue 62.76 % sheet and wiro products having registered Lead Manager : Monarch Networth Capital Ltd. office at Mumbai and factory at Silvassa. Registrar : Karvy Computershare Pvt. Ltd.

The promoters are having more than 15 years of experience in Plastic Sheet, lamination sheet, folders, I card and files. KPL & its executives have developed the skill and expertise in designing and innovation in office stationery, calendar, dairy and student study materials of different variety colours, design and application. It has also developed the In house technical & Design team to provide stationery solution and implementation for calendar, diary, books as replacement of tradi- tional material with new and innovative PP material. Kshitij plans to enter into the capital market next month. It will raise Rs. 875 lacs by listing on NSE Emerge to part finance the expansion plans by setting up imported high tech machine from Korea and China and also for the purpose to increase working capital. It plans to issue 25,00,000 equity shares of Rs. 10 each and has also decided issue price of Rs. 35\- per equity shares. Trad- Financial Summary ing Lot size is 4000 equity shares. Post is- (Rs. in Lacs) 2016 2017 2018 sue promoters’ stake shall be 62.76%. Sales 1557.24 1701.03 2743.25 Company has developed products and EBITA 242.74 252.19 385.19 sell under brand name " Classic", "Lucky" and PAT 19.94 27.78 105.62 "Kshitij". Company has presence in Pan In- Cash PAT 86.28 103.36 185.25 dia and having own dealers and distribution Equity 175.00 300.00 530.00 Reserve & Surplus 33.43 111.11 331.75 network. Book Value (Rs.) 11.91 13.70 16.26 EPS (Rs.) 1.14 0.93 3.10 Cont... Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 9 Kshitij Polyline Limited, is engaged in Company Overview business of manufacturing and mar- • Inception in 2008. Registered and corporate office in keting of office stationery, Lamination Mumbai sheet, PP sheet and wiro products • 36,000 sq ft. manufacturing facility in Silvasa, Dadra & Nagar Haveli • Experienced promoters and skill executives Company has achieved the turnover Rs. • Mfg from granule to PP sheet with various colours to 2743 lacs and Net profit Rs. 105.62 lacs finished products during financial year 31/3/2018 as com- • In house technical & Design team • Designing & innovative stationeries, study material, etc pared to Rs. 1701 lacs and net profit Rs. • 125+ products File, Folder & Diary products with inno- 27.78 lacs in year 31/3/2017. vative marketing tools

KPL was was originally incorporated as Kshitij Polyline Private Limited on March 26, 2008 under the Companies Act, 1956 vide certificate of incorporation issued by the Registrar of Compa- nies, Mumbai. Company was subsequently converted in to a public company and consequently name was changed to Kshitij Polyline Limited (KPL) vide fresh certificate of incorporation dated January 19, 2018 issued by Registrar of Companies, Mumbai. KPL was incorporated by promoters- Mr. Bharat Gala & his family members with an aim of running Manufacturing, marketing, sourcing of Plastic Sheet, lamination sheet, folders, I card and files having wide application in printing Product Portfolio • Binding Materials • Lamination Materials • Badge Clip Fiting • Industrial Plastic Sheets • Double Loop Metal Wiro • Neck Lanyards • Plastic Card Holders • Plastic Files & Folders • Binding Machine • ID Cards Corner Cutter • Binding Spiral • Dyesublimation Products • PP Sheets • File Folder Accessories • Plastic Sheet • Plastic Clip • Metal Clip • Miscellaneous Products

PP Sheets

Card Holder

BC-4 Metal Sticker Badge Clip

Double Loop Wire Laminating Pouch Plastic Executive Document Bag

Cont... Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 10 and stationery. As a part of business growth, Promoters of Kshitij Polyline Limited the Company registered with the Registrar of Bharat Hemraj Gala : He is the Chair- Companies, Mumbai on 26th March, 2008 as man and Managing Director of the company. He has studied Diploma in Plastic Engineering Kshitij Polyline Private Limited. from Shree Bhagubhai Polytechnic College, The company’s aim is to develop its Brand Mumbai, and has more than 15 years of experience in Plastic & Stationery Industry. He has for quality products for Office stationery, Pub- developed a wide range of products with ver- licity material, ID card & smart card, File & satile applications. He presently looks after the overall busi- folders & wiro books and developed the tech- ness development, Quality control, E commerce and sourcing of material and client relationship. nique to make all products as Make in India Rita Bharat Gala : She is a Non-Execu- and provide competition to China and other tive Director. She has degree in B.A with Eco- Markets. Under the guidance of promoters, nomics, from Mumbai University and has more than 10 years of experience in customer the company has successfully launched wide relationship management & Human re- products range, established goodwill for qual- sources. She has single handedly managed ity products and have the regular clients for ample exhibitions and fairs. She is familiar with a lot of softwares and her skills help her play a supportive role in many the laminated & PP sheet, Wiro, File and fold- management activities. She primarily looks after the HR and ers. customer relations for business development of the company. The company has developed and Rahul Devshi Shah launched more than 125 products range in He is an Executive Director and CEO. He File, Folder & Diary under its Brand in Indian has an experience of more than 10 yrs in Plas- tic Industry. He looks after Exports, Market- Market. Further, it has supply – Make to or- ing, and Channel Sales. der – ID card with ribbon, File & Folder with client Logo and Info, Display materials for Education, Pharma, FMCG, Finance and Insurance sectors. The company has regular business from existing clients such as Navneet Publication, Anupam Stationery, Events and Media Organisers of conference and Exhibition. Company has developed the regular whole-salers and distributors for supply of laminated sheet, PP sheet, office stationery and allied products. KPL has established own distribution and marketing network in Pan India Basis. Management is planning for business expansion by having state of the art manufacturing facility and comply with international standard. It has plan to develop logistic & warehousing facility in Delhi, Jaipur, Culcutta, Hydrabad, Banglore, Chennai and Pune. This shall also support for E commerce and Online marketing of company‘s products. Under the guidance and vision of management, KPL has progress well and also participated in International trade fair in Germany and Gulf nation. KPL is regularling in participating in trade fair and exhibition in India and abroad to have presence in international market for its products. The Stationery industry is expected to register CAGR growth of 15 per cent in the next few years. The Rs 20,000 crore stationery industry in the country is poised for innovation and growth. The writing paper industry is estimated at Rs 10,000 crore and notebooks have share of Rs 7,000 crore.

**** Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 11 Rapid Fire Stocks

- Kalpna J (Email- [email protected]) (Ring : 97690 37711) Twitter : @Kj_TechTrades

JSW Steel (Rs. 408.00) Targets - 460, Time Frame - 3 to 12 Months , SL - 380 A $13 billion. conglomerate, JSW Group is one of India's largest business conglomerates. It is led by Sajjan Jindal and part of the US $15 billion O. P. Jindal Group. Earlier, the name was Jindal South West. Later, the company adopted the name of JSW to promote it as a brand. JSW Steel Ltd, the flagship company of the JSW Group, is an integrated steel manufacturer in India with an installed steel-making capacity of 18 million tonnes per annum (MTPA). The company offers the entire gamut of steel products - Hot Rolled, Cold Rolled, Galvanized, Galvalume, Pre-painted Galvanised, Pre-painted Galvalume, TMT Rebars, Wire Rods & Special Steel Bars, Rounds & Blooms. They have manufacturing facilities at Vijayanagar in Karnataka, Dolvi, Vasind, Kalmeshwar, Tarapur in Maharashtra, Salem in Tamil Nadu and Texas in USA. JSW Steels plant at Vijayanagar in Karnataka, is the largest single location steel producing facility in the country with a capacity of 12 MTPA. JSW Steel is part of US $15 billion O.P.Jindal Group. JSW Steel Ltd was originally incorporated as Jindal Vijayanagar Steel Ltd on March 15, 1994. During the year, the company entered into a technical arrangement with Voest Alpine Industrieanlagenbau (VAI), for technical details with respect to productivity, iron ore technical details etc. The company set up two joint venture companies namely Jindal Tractebel Power Company Ltd and Jindal Praxair Oxy- gen Co (P) Ltd for supply of power of 2 x 130 MW of power and supply of Oxygen respectively. In the year l995, the company entered into a joint venture with Praxair to build and operate worlds largest cryogenic air separation plants for supply of oxygen, nitrogen and argon to Jindals integrated steel facility in Bellary in Karnataka. In the year 1997, the company commissioned the BOF & CCP Units to synchronize with the commissioning of the first unit of Corex. Also, they entered into a joint venture with Mysore Minerals Ltd (A Government of Karnataka Undertaking) the Lease- holder of Thimmappanagudi deposits, to form Jindal Mysore Minerals Mining Company Pvt Ltd. In March 1997, JVSL commissioned the first phase of the roughing mill of their hot strip mill. In the year 1999, the company entered into an agreement with the Steel Authority of India (SAIL) for procuring slab. Cont.... Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 12

Glenmark Pharma (Rs. 690.00) Targets - 777- 850 , Time Frame - 5 to 12 Months , SL - 611 Technical Discourse - Multiple breakouts coming on the Weekly Chart with Price Volume action Glenmark Pharmaceuticals Ltd is a research-driven, global, integrated pharmaceutical company. The company is a leading player in the discovery of new molecules both NCEs (new chemical entity) and NBEs (new biological entity). The company has several molecules in various stages of pre-clinical and clinical development primarily focused in the areas of Oncology, Respiratory and Dermatology. Its branded generics business has a significant presence in markets across emerging economies including India. The generics business services the requirements of developed markets like US and Western Europe. The API business sells products in over 80 countries including the US, various countries in the EU, South America and India.The company has 17 manufacturing facilities across US, India, Argentina, Czech Republic and Switzerland. The company has 5 state-of-the-art R&D centres in India and Switzerland. The company has commercial presence in over 80 countries and local offices in over 40 countries. Glenmark was founded with a vision to emerge as a leading integrated research-based, global pharmaceutical company. Over the decades, they have established ourselves as a leading player in the discovery of new molecules both NCEs (New Chemical Entity) and NBEs (New Biological Entity). They have several molecules in various stages of pre-clinical and clinical development and are primarily focused in the areas of Oncology, Respiratory and Dermatology. Their branded generics business has a significant presence in markets across emerging economies including India. The generics business services the requirements of developed markets like US and Western Europe. Our API business sells products in over 80 countries including the US, various countries in the EU, South America and India. With 17 manufacturing facilities and 5 R&D centers dedicated to the goal of enriching lives across the globe we believe that the real force behind our continued successes are dedicated employees from across 50 nationalities, committed to creating 'A new way for a new world'. Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 13 SMART BUY OF THE WEEK Dark Horse

Aries Agro Ltd. (532935 & NSE) (115) (Face Value Rs.10) Particular Qtr. End. Q1FY19 Q1FY18 % Var. Sales 56.42 61.46 -8.93 PBT 4.87 2.92 66.78 PAT 3.16 1.9 66.31 EPS 2.43 1.46 66.43

Incorporated in 1969, Mumbai based Aries Agro Limited, together with its subsidiaries, manufactures and supplies micronutrients and other customized nutritional products for plants and ani- mals in India. The company's products include EDTA chelates, amino acid chelates, soluble and sulphur based fertilizers, pesticides, fisheries and animal nutrition, crop management products, other plant nutrients, and secondary plant nutrients. It also deals in veterinary products. Company has very wide distribution network across the country. It operates along a distribution channel comprising of about 6,400 + distributors and a direct retail touch point of more than 86,000 + dealers. Its reach extends to most of the major fertilizer consuming districts of the country. Its retail outlets are spread over 27 states in India. It has an equity base of just Rs.13crore that is supported by reserves of around Rs.169.9crore. The promoters hold 52.66% while the investing public holds 47.34% stake. Ace investors Vijay Kedia holds 3.07% and S Shyam holds 2.62% stake in this company. Its share book value works out to Rs.160.83 and the price to book value ratio stands at just 0.70x. For Q1FY19, its PAT soared 66.31% to Rs.3.16crore from Rs.1.9crore in Q1FY18 on sales of Rs.56.42crore fetching an EPS of Rs.2.43. AAL is a regular dividend paying company. It has paid 23% dividend for FY18. Currently, the stock trades at a P/E of just 12.6x. Its 52 week high rate is Rs.290.15 which was formed on 24th October 2018. Stock almost corrected 61% from 52 week high. Investors can accumulate this stock with a stop loss of Rs.100. It may give very good returns in medium to long term. Cont... Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 14 Goodluck India (530655 & NSE) (CMP: Rs.76) (FV: Rs.2)

Particular Qtr. End. Q1FY19 Q1FY18 % Var. Sales 372.47 300.73 23.85 PBT 9.74 4.78 103.76 PAT 5.99 2.64 126.9 EPS 2.96 1.24 138.7

Established in the year 1986, Goodluck India Limited is an ISO 9001:2008 certified organi- zation, engaged in manufacturing and exporting of a wide range of galvanized sheets & coils, towers, hollow sections, CR coils CRCA and pipes & auto tubes. Company also specializes in providing Telecommunication Structures, ERW Steel Tubes, ERW Steel Pipes, and Galva- nized Black Steel Tubes. Its exemplary products and services have enabled them to leap geographical bounds and register a strong presence in 100 countries across the globe. The Company has equity of just Rs.4.60crore while company has huge reserve of around Rs.273.7crore. Promoters hold 62.18% while investing public hold 37.82% stake in the company. Its share book value works out to Rs.120.97 and the price to book value ratio stands at just 0.63x. During Q1FY19, net profit soared 126.9% to Rs.5.99crore from Rs.2.64crore in Q1FY18 on 23.85% higher sales of Rs.372.47crore fetching an EPS of Rs.2.6. In early FY17-18 the company announced its Greenfield project at Bhuj with the capacity of 72000 MTPA which has been commissioned and started commercial production from 11th July 2018. Its positive impact will start from Q2FY19 numbers. The Company has allotted 10,00,000 convertible warrants at a price of Rs.125/- each on preferential basis to persons belonging to promoter group which has been converted into equity shares on 05th January 2018. Its 52 week high rate is Rs.142.5 which was formed on 15th January 2018. Stock almost corrected 47% from 52 week high. At CMP, GLIL trades at PE ratio of just 8.7x earnings. Investors can accumulate this stock with a stop loss of Rs.65. It may give very good returns in medium to long term. Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 15 Jatin Sanghavi (Mumbai) Market Scan (M) 098205 26455 [email protected]

SUPPORT ZONE : 11249-11245 TO THE RESCUE STILL NOT OUT OF THE WOODS :- It was a déjà vu of previous week as the Market mimicked the happenings of the previous week as it lost heavily in the first two days of the week. Monday and Tuesday saw the Nifty once again losing around 350 points and Sensex around 1100 points. But somehow Nifty managed to recover lost ground by bouncing back after taking Support at the Sup- port level mentioned in previous week of 11249-11245. It proved to be highly accurate as the market bounced back from a low of 11250, bouncing off with ferocious strength as the Nifty recovered majority of lost ground in two days flat. Despite the strong pull-back, one cannot say with certainty that we are out of the woods. Nifty needs a close above 11565-11603 to safely say that the Correction is complete. TECHNICALLY SPEAKING :- Sensex opened the week at 38348, made a high of 38354, low of 37342 and closed the week at 38090. Thus it closed the week with a loss of 299 points. At the same time the Nifty opened the week at 11570, made a high of 11573, low of 11250 and closed the week at 11515. Thus the Nifty closed the week with a loss of 74 points. On the daily charts, both Sensex and Nifty have formed a White body candle which has come as a confirmation of Bullish Harami formation which got completed on Thursday. On the weekly chart, both the indices have formed a Black Body Hammer which is a Bullish Reversal pattern. Thus daily as well as weekly candlestick formations are showing Bullish Bias. The Bears repeated the dose of last week and it was like a repeat as the Sensex fell around 1100 points in two days flat and Nifty around 350 points, before bouncing back. Immediate Correc- tion levels are placed at Sensex 37199-36646-36093 and 11247-11089-10930 for the Nifty. Higher degree Correction levels are placed at Sensex 36504-35736-34969 and Nifty 11069-10856-10643. This Weeks Recommendations Rec. Name CMP SL TGT-1 TGT-2 Buy Bajaj Fin. 6709 6589 6891 7085 Buy PEL 3048 2977 3146 3249 Buy Vedanta 235 229 244 254 Buy Jindal SteeL 233 228 241 250 Buy Sonata Soft. 394 386 407 421 :::: INDEX LEVELS :::: S3 S2 S1 CLOSE R1 R2 R3 NIFTY 11234 11340 11430 11515 11603 11700 11793 SENSEX 37061 37361 37752 38090 38487 38838 39162

Cont... Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 16

38.2% Retracement level of the Immediate Rally along with Golden Ratio forms a strong first Confluence Support Zone between Sensex 37199-37038 and Nifty 11247-11245, which proved to be a strong support, as the Nifty made an intermittent bottom at 11250. Second Confluence Sup- port Zone is between Sensex 36646-36504 and Nifty 11089-11069. This week saw testing of the strong daily as well as weekly Bullish Gap between Sensex 38050- 38022 and Nifty 11499-11486 as well as second Bullish Gap between Sensex 37643-37582 and Nifty 11370-11368, before bouncing back. The first Bullish Gap is at Sensex 37131-37061 and Nifty 11210-11185, which is an extremely strong Support for the market. Both Sensex and Nifty are in Pull-back mode and any closing above the confluence zone of Sensex 38360-38421 and Nifty 11565-11603 will signal the end of Correction. Both Sensex and Nifty completed a Rounding Bottom formation and the Target as per that pattern falls at Sensex 40403 and Nifty 12391. Also both the indices had completed a Bullish Cup and Handle pattern which has a target of Sensex 39503 and Nifty 11907. The above targets will be achieved as long as Sensex remains above 34937 and Nifty above 10557. This week, both the indices tested both the short term average of 20dma (Sensex - 38233 and Nifty - 11545) as well as medium term average of 50dma (Sensex - 37437 and Nifty 11304) before bouncing back. 50dma came to rescue as both indices bounced back from there, but somehow could not close above 20dma. Both the indices continue to remain well above the long term average of 200dma (Sensex - 35158 and Nifty - 10730). Thus the trend in short term timeframe has turned down, whereas the trend in medium term as well as long term time-frame remains Bullish. MACD and Price ROC are in Sell mode. RSI (53) suggests bullish momentum. Stochastic Os- cillator %K (26) is above %D and hence in Buy mode. ADX has reduced to 27, suggesting that the Uptrend is under consolidation. Directional Indicators are in Sell mode as +DI is below -DI. MFI (41) suggests Negative Money Flow. OBV is making higher top higher bottom formation. Bollinger Band has given a Sell signal this week. Thus Oscillators are suggesting a mixed bias. Options data for September series indicate highest Call Open Interest is at the strike of 11800 whereas the highest Put build-up is at the strike of 11400. Thus Options data suggests a narrow trading range with resistance at 11800 & support at 11400. Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 17 Jignesh R Mehta (SEBI Registered Research Analyst) E-mail : [email protected] Website : www.KiranJadhav.com Phone: 9327 11 3344 / 9328 11 33 44 Twitter: @jigneshrmehta Nifty & Bank Nifty have created good support We believed to have some consolidation in Nifty as long as it stays in to the specified range as per our last week's article. Nifty broke the lower levels of the prescribed range and hence we did see an abrupt down move. When a down move occurs in the bullish market, it always remains brisk and works in one way sharply. The way Nifty moved down last week until Wednesday, the smart chartists would have known that an up move on the Nifty was just on the cards. While trading in up moves on Thursday and Friday of the concluded week, Nifty made itself a significant support at 11280 kind of levels. This level of 11280 would act as important support for at least coming 2/3 weeks and therefore Nifty would not be in any hurry to break these levels below. The move that hap- pened on Friday was a Gap up opening and hence it should be termed as RUN AWAY gap. This gap would not be easily filled and Nifty would remain in bullish mode as long as it is staying above the Gap. Upon having the same views on Nifty Bank the important support that could be 26800 and hence Nifty Bank would not be in any hurry to break this level down side. Even Nifty bank witnessed the RUN AWAY gap and hence it should remain in Bulls hands as long as It is trading above the gap. Globally the chart of down jones also have broken out of the medium term Symmetrical Triangle and hence it should form bullish trend generally. Following the same, Nifty and Bank Nifty would also remain bullish for the target of 11625 and 27550 respectively.

Cont... Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 18 RISING STAR: Hindalco Industries (245.45)

Hindalco Industries :- While many METAL stocks are rallying, one stock which we have picked up for our readers is HINDALCO because of the ample opportunies it has produced. First of all the stock price is staying above a green colored up slanting support line which is a good way to note an uptrend in the stock. Also if we see the price after a good runup, taking rest in the down trending channel shown with two blue colored parallel lines. This down trending channel suggests that price was consolidation since start of 2018 until now. Cur- rently price is not only forming Bullish candlestick pattern practically on every other day but the EMAs are spreading away for both short term as well as long term groups. Both the group of EMAs have started to spread in bullish way just recently and that all suggests a bullish setup on our hand. One can view of the price to go up significantly for the target of at least 450 in coming year with initial stop loss to be placed at 205. Financial advisor must agree for the initial stop loss levels. Once the up move starts in desired direction then trailing stop loss would be a good strategy to ride this rally. Jignesh R Mehta (SEBI Registered Research Analyst www.kiranjadhav.com • [email protected] • Phone: 9327 11 33 44 / 9328 11 33 44 Twitter: @jigneshrmehta Disclosers : Views expressed in this article/articles are personal opinion of Author and it does not constitute an offer to buy or sell securities mentioned herein. Enough care has been taken before arriving at these data, figures & charts, however, readers are advised to do their own assessment before taking any actions in the market. The author and his company does not take any responsibility for any results that may arise out of using this information. Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 19 Subramanian Mahadevan Stock Buzz [email protected] Dhanlaxmi Bank Limited (Rs.14):Poised for Merger! Dhanlaxmi Bank Limited (DBL) - is a Kerala based financial institution incorporated in 1927, Dhanlaxmi Bank is one of the oldest mid-size private sector banks in India with a pan- India presence through a network of 260+ branches, 371+ ATMs covering 680 centers across 15 states. As on March 31, 2018, the bank had total deposits in excess of INR 13000 crores with advances at INR 7000+ crores and an asset base of Rs. 12333 crores. DBL has a well- diversified product basket and is present across the Personal Banking, Corporate Banking, NRI Banking, Micro & Agri Banking, SME Banking and other financial planning verticals. DBL strengths is its number of customers, scale of business, breadth of product offerings, banking experience the bank offers and the trust that customers have in the bank. DBL reported a turnaround result with PAT of Rs 12.38 crores (FY16: Rs 209.45 crores losses) in FY17 after three consecutive years of net losses. The bank also reported a 9% growth in Net Interest Income (NII) totaling Rs 331.60 crores as compared to Rs 304.68 crores last year. Further the bank reported a healthy improvement in the cost to income ratio which resulted in the operating profits moving up to Rs 96.37 crores as compared to an operating profit of just Rs 3.28 crores last year. Also GNPA has also reduced to 4.78% in FY17 from a peak level of 7% in FY15 and around 6.36% last year. The NNPA stands at 2.58% as on FY17 as compared to 2.78% last year. Worst of asset quality is behind and management sounds more confident than before in the preceding three quarters with excellent profits. DBL - a strong takeover candidate currently trades at less than 0.4 times P/BV on FY18 and 0.3 times P/BV FY19 which look attractive from a long term perspective considering the banks size and long term prospects. Early this year Canada based private equity giant Fairfax Holdings acquired 51% in another regional rival of DBL namely Catholic Syrian Bank (CSB) for INR 1200 crore at Rs.140/share and rumors are rife between Kotak Mahindra and Axis Bank for a potential merger indicating growing consolidation in the Indian private sector banking space. Accumu- late for sure shot 100% returns in one to two years' time with very limited downside.

Cont.... Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 20 BGR Energy Systems Limited (Rs. 76):Upgrade Power! BGR Energy Systems Limited (BGR) - is a Chennai based company incorporated in 1985 as GEA Energie Systems India Pvt Ltd (a joint venture company between GEA Energietechnik GmbH Germany and B G Raghupathy the promoter) to produce and sell On-line Condenser Tube Clean- ing Systems Debris Filters and Rubber Cleaning Balls used in Thermal and Nuclear Power Plants. BGR is one of the India's growing engineering company in power sector. The company carries the business in two segments namely the Supply of systems and Equipment - designs, manufacture and service a range of systems and equipment for the Power Oil & Gas Refinery Petrochemical and Process Industries and Turnkey Engineering project contracting. The company consists of seven complementary businesses - Power Projects, Oil and Gas Equipment, Air Fin Coolers, En- vironmental Engineering, Electrical Projects and Infrastructure business. Recent orders and entry into new verticals like water treatmentbusiness and other developments like executing dispute settlement with Hitachi, huge EPC order from APGENCO worth 2300 crore in 2016 to be executed in 36 months and scrapping of eight year old deal with TN Government (Cuddalore PowerGen Corporation) for 1320 MW thermal power project augurs well for the company. India will see around 6-8 gigawatts of new thermal power capacity every year but there is 70-80 gigawatts of capacity that can be upgraded for efficiency and flexibility, this may happen over the next five years. This upgrade can save the country more than $3 billion dollars in power bills and at the same time reduce carbon emission. Given its track record of uninterrupted dividend, experienced management with excellent execution skills, BGR is available at attractive valuations for more than 50% returns with limited downside. - Subramanian Mahadevan

Sensex-Nifty is at life highs But Your portfolio is still down by 30-50% ??? You want to reshuffle your loss making stocks into profitable ones ? For register whatsApp - Your name, Mobile number, City on 7 7 4 4 8 0 4 0 9 8 Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 21

Rohan Nalawade - Expert in financial analysis (Mumbai ) Smart Picks E-mail ID : [email protected]

Market is volatile NIFTY ( 11350-11600)

Last week market was volatile and moved both sides of the range , the range of nifty is 11250- 11550 spot levels, now market moving in this range and big breakout of levels can be seen in 10- 15 days from here for 500-600 points nifty. Weekly levels will be unless 11600 levels spot which was recent top from where market came down market if crosses this level then only fresh buying can be seen in market and below 11350 positnal sell will be seen, so trade cautious and lot of international news are going on the USA ,CHINA trade war news are going on which is effecting all type of market can can be negative for equity markets and commodities and positive for crude oil as prices are going up so is petrol prices are increasing slowly so the inflation will increase next month and RBI may hike rates in October 4th which may effect bank nifty and fall may come there in market so be cautious and take light position till the sentiment is improved overall. In currency market USD -INR is trading in range 71.40-72 a close above 72 will trigger upmove in USD for 72.50- 73 , and a close bellow 71.40 sell pressure will be seen and RUPEE will gain strength with equity market. STOCK TO WATCH OUT :- Colagate looks good above 1120 for 1140-1145 sl 1111 Bata looks good above 1040 for 10 65-1070 sl 1020 Jubilant food looks weak below 1335 for 1310-1300 sl 1355 Reliance is sell below 1260 sl 1279 for 1230-1200

Buy... Buy... Buy on Dips Hold Sell on High Tech Mah. 760.00 Balrampur Chini 88.00 Vedanta 235.00 Kwality Ltd. 20.00 CanFin Home 309.00 NFL 46.00 Uttam Sugar 109.00 Cyient 742.00 Dalmia Sugar 78.00 Coromandal Int. 406.00 Sun Pharma Adv. 399.00 ICICI Prud. 378.00 PFC 84.00 VIP Ind. 547.00 SRF 2007.00 Kaktiya Cem. 247.00 Peninsula Land 16.00 ILFS Trans. 24.00 Prima Plastics 124.00 Dhampur Sugar 117.00 Tata Motros 266.00 Welspun Corp. 170.00 PNB 82.00 Prestige Estate 235.00 KSCL 630.00 HCL Techno 1070.00 Aditya Birla Fash. 191.00 Andhra Sugar 440.00 Biocon 662.00 Escorts 780.0 Federal Bank 77.0 Kolte Patil 285.00 Eicher Motors 29366.00 MTNL 15.00 Hi-Tech Gears 433.00 Supreme Petro 246.00 Natco Pharma 825.00 Scooter India 38.00 Indian Hume Pipe 275.00 Verdhman Tex. 1020.00 Jamna Auto 80.00 Caplin Point 508.00 Chola Invest 1323.00 Super Sales 552.00 Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 22 A. K. Asnani (M) 9893512098 Smart Verc (Bhopal) Author of Book Way to Billionaire Graphite Electrodes In my investment experience of 30 years for the first time I came across record sort of things in a fairly big manufacturing company with decent management:- " In a single year Sales zoomed three times and a net loss of Rs 50 crores got replaced with a net profit of Rs 1081 crores. " For 2017-18 Net Profit Margin stood at whooping 39%anf for the first quarter current year NPM further went up to 48.53% and OPM (Operating Profit Margins) to …. Hold your breath …75.23%!! " Share price zoomed 25 times from Rs 160 to Rs 4160 in a matter of just 21 months. The company I am referring is HEGLtd. (formerly Hindustan Electro Graphites Limited) There is one more company with almost similar change in fortunes named Graphite India Limited, whose share price jumped 13 times in last 21 months. The common factor between these tow companies is that both the companies are engaged into the manufacturing of Electrodes used in manufacturing steel through EAF (Electric Arc Furnace) route. There are lots of other commons between the two companies, foremost being both the stocks even after recording eye popping gains are available at a single digit PE on first quarter annualised EPS figures. Just don't go by the PE ratio alone……. The road is not without risks. Let's try to analyse the dynamics of this product and its usage. Steel :- Steel can be produced in two ways; Blast Furnace and Electric Arc Furnace (EAF) route. Later offers flexibility in operations consumes less energy and creates less pollution. EAF accounts for about 45% of total World Steel Production (excluding China) In order to control pollution, in Chinese Government asked Blast furnace steel producers to close down their operations in some regions. This resulted in increased consumption of Electrodes by the Chinese steel EAF route producers. Also, this lead to reduced steel exports by China (Exports declined from 112 mmt in Calendar year 2016 to 76 mmt in CY 2017) which led to increased production of steel in other countries and lead to further increase in demand for electrodes. As per WSA (World Steel Association) steel produced worldwide through EAF route was 473 mmt in CY 2017 and is expected to jump to 592 mmt by CY 2020. Electrode sector :- At global level there are only six companies manufacturing electrodes with significant capacities. There is a strong entry barrier in terms of technology. No new plant can be set up without technology tie up with existing ones. Even for the existing players it will take long time to set up a Greenfield project. In the recent presentation HEG has mentioned that to increase the capacity from 80,000 tpato 1,00,000tpa it will take 18 to 24 months time. Closing down of almost 3,00,000 tons of graphite electrode manufacturing capacity worldwide due to inefficient / polluting operations has further created shortage of electrodes. On the flipside there is a limited supply of needle coke, which is a critical raw material in the Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 23 manufacture of graphite electrodes and there are only three manufacturers at international level. Few years back needle coke was in excess supply and producers found its successful application in the production of Lithium ion batteries which are also used in Electric Vehicles. Now due to sudden demand emanating from Graphite Electrode manufacturers there is shortage of needle coke. Thus the good story of rising electrode prices is yet not over, but the road ahead does not seems to be as rosy as has been in the past. Investors are advised to perform due diligence before investing in any of these two companies. And please don't forget to use proper Stop Loss. By A K Asnani Author - Way To Billionaire - 09893512098 [email protected] A K Asnani has experience of 30 years into stock investing. He will not be responsible / liable for any loss arising out of investment ideas based on its advices including any inadvertent errors/ omissions. This advice should not to be construed as an offer to buy or sell securities. Stock price movements are subject to market risk. Past performance may or may not be sustained in future.

Buy or Sell, Confused ? Let the EXPERTS Help You Join our Service for 1 Month & We are Sure. You will be our Lifetime Member Equity & Commodity Tips Call Us : 91-9930011789 www.shareinfoline.com Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 24 Technical News : 17-9-2018 to 21-9-2018 Manu Consultants : Manishkumar - Kolkata SEBI REG:- RESEARCH ANALYST- INH300002449

• NIFTY FUTURE NIFTY FUT SUPPORT AT 11300-11200 AND RESISITANCE 11800-12000 STRATEGY :- BUY NIFTY ON DIPS TILL 11500 SL 11430 TA 11600-80 • STOCKS F&O:- BAJAJ FINSERVE (6780):- BUY BAJAJ FINSERVE ON DIPS TILL 6700 SL 6600 TA 6850- 6900-7000 MCDOWEL (586):- BUY MACDOWEL ON DIPS TILL 575 SL 565 TA 596-610 PEL (3054):- BUY PEL ON DIPS TILL 3000 SL 2965 TA 3150-3200 TATA ELXI (1345):- BUY TATA ELXI ON DIPS TILL 1320 SL 1310 TA 1374-80-94 • SELL STOCKS SELL AMARA RAJA IF BREAKS 800 SL 816 TA 790-84 SELL JUBILANT FOOD IF BREAKS 1330 SL 1365 TA 1300-1270 • DELIVERY STOCKS Future Consumer (Rs. 50.20) :- BUY FUTURE CONSUMER SL 40 TA 58-64-70 DISCLAIMER :- The Recommendations are based on technical analysis. There is a risk of loss in trading.Please visit website www.dallalstreet.org for full disclaimer and disclosures. Physical Share  Signature Problem  Name Change  Death of Share Holder  Transfer or Sell  Address Change  Any Affidavit Call : 9879930075 Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 25 Terrific Shots - Dilip K. Shah

Ramkrishna Forging (Rs.660.00) (Code:532527) :- The company set up in 1981 supplies products in various sectors. In June quarter, the company recorded net profit of Rs27.72 crore on income of Rs410.48 crore, against profit of Rs9.08 crore on income of Rs257.61 crore in the corresponding quarter last year. In FY2018, the company's income increased from Rs888.48 crore to Rs1490.9 crore, while profit increased from Rs19.28 crore to Rs94.93 crore. The forging company shares like Bharat Forge and Mahindra Forging have also witnessed upward movement in stock prices. The sector's performance has remained solid. The stock seems attractive at current level and it may touch new highs in near future. However, considering market value, it is advisable to invest in phased manner in this stock. Acrysil (Rs.608.00) (Code:524091) :- The company is listed in 'B' group with face value of Rs10 a share. The company manufactures kitchen sink, food waste disposer and kitchen appliances. The demand for luxury products is increasing. In the first three months of FY2019, the company's income increased from Rs46.73 crore to Rs60.22 crore, while profit increased from Rs3.68 crore to Rs4.34 crore. The company's equity is Rs5.19 crore on which the company has recorded EPS of Rs8.36. In 2012, the company issued bonus in ration of 1:2. It paid 50% dividend for FY2018. The stock seems attractive and can be held for 3-4 years. The equity is small so the floating stock is limited. Ashish Kacholiya holds 4.26% stake in the company. Visaka Industries (Rs.527.00) (Code:509055) :- It was incubated in 1981. Earlier it was manufacturing only cement sheets and it had capacity of 36,000 tonner per year. It set up its first factory in Andhra Pradesh. In 1992, it diversified in textile yarn manufacturing. In June quarter, the company's income increased from Rs340.72 crore to Rs345.69 crore, while profit increased from Rs22.96 crore to Rs30.34 crore with EPS of Rs19.1. The government is planning to invest in rural India, which many benefit the construction companies. As against the equity of Rs15.88 crore, the company has reserves of Rs371.94 crore. The promoters hold 41.29% and public hold 58.71% stake. Amber Enterprise (Rs.947.00) (Code:540902) :- The consumer electronics company enter into the market in January 2018 with IPO offering shares at price of Rs859. The company is a market leader in AC outsource manufacturing. The electronics manufacturing services market was worth Rs15000 crore in 2016. It is likely to touch Rs235000 crore by 2021 due to higher demand of electronics products in the country. The government's Make in India and Modi- fied Special Incentive Package Scheme are positive factors behind growth of the sector. In June quarter, the company witnessed net profit of Rs602.09 crore to Rs28.87 crore with EPS of Rs8.18. As per Edelweiss Securities, the company's earnings may increase by 44% and EBITDA growth could be 25% between 2018 and 2021.

Disclosures as per SECURITIES AND EXCCHANGE BOARD OF INDIA (Research Analysts) Regulation, 2014 ; • I and / or my clients may have investment in this stocks • I/My family have no financial interest or beneficial interest of more than 1% in the company whose stocks I am recommending • Stop loss is useful for Short / Medium Term investor Only • Smart Investment will not be responsible / liable for any loss arising out of investment based on tis advices • Past performance may or may not be substainedin future " (Dilip K. Shah) Research Analyst : SEBI Regn No. : INH000002152 Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 26 Sarvesh Ashok Trivedi Stock Wave (Mumbai) (Mob) 09820728124 www.chartsanketstock.com Important resisting level for Index will be at 38367 and Nifty Future at 11619 BSE Index (38090.85) :- It shows downward movement from top of 38989.65. It shows oversold position on daily basis, overbought to neutral on weekly basis and overbought position on monthly basis. September 21 to 24 are gain turning days. On upward movement, beyond 38126 it may go up to 38367 it may witness resisting level at 38422. On the downward movement, below 37975 it may go down to 37470 and 37342, below which selling spree may increase. Nifty Future (11538.00) :- It shows downward movement from top of 11793. It shows oversold position on daily basis, overbought to neutral on weekly basis and overbought position on monthly basis. On upward movement, beyond 11561 it may witness resisting level at 11619. On the downward movement, below 11483 it may go down to 11406, 11330, 11297, 11250, 11175 and 11100. Bank Nifty Future (27202.00) :- It shows downward movement from top of 28408.80. It shows oversold position on daily basis, overbought to neutral on weekly basis and overbought position on monthly basis. On upward movement, beyond 27290 it may go up to 27471 with resisting level at 27560. On the downward movement, below 27090 it may go down to 26940, 26706, 26700, 26650 with support at 26500. Escorts (780.55) :- It shows downward movement from top of 1015.42. It shows oversold position on daily and weekly basis, while towards oversold position on monthly basis. On upward movement, beyond 795 it may witness resisting level at 805. On the downward movement, below 757 it may go down to 738 and 715. JSPL (233.45) :- It shows downward movement from bottom of 177.25. It shows overbought position on daily and weekly basis, while towards neutral position on monthly basis. On upward movement, beyond 240 it may go down to 265. On the downward movement, below 228 it may get support at 218. Kaveri Seeds Co (631.45) :- It shows southward movement from top of 660.70. It shows neutral position on daily basis, while overbought position on weekly and monthly basis. On upward movement, beyond 637 it may witness resisting level at 648. On the downward movement, below 618 it may go down to 602, 595 and 589. Manappuram Finance (88.10) :- It is moving down from top of 129.18. It shows oversold position on daily, weekly and monthly basis. On upward movement, beyond 92 it may witness resisting level at 95. On the downward movement, below 79 it may go down to 63. Reliance Capital (418.70) :- It shows downward movement from top of 475.51. It shows oversold position on daily basis, while overbought position on weekly and monthly basis. On upward movement, beyond 428 it may witness resisting level at 440. On the downward movement, below 410 it may go down to 397, 391 and 382. It is not worth investing. disclosure : The Recommendations are based on technical analysis. There is a risk of loss in trading. Golden quote :- Your perception is your reality Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 27 Dilip Davda e-mail Expert’s Eye [email protected]

Global concern kept a tab on general sentiment Second negative week in a row

Four session week under report opened the week on a negative note and with two mega negative closing for firt two days, it witnessed short covering for midweek and support at lower level in last session following better than expected IIP and CPI data kept market in green for last two sessions. However, mega fall for first two sessions overweigh the recovery and thus week closed in red. Thus this was the second negative week in a row. As can be seen from the table below, during the week, indices moved in the range of 11573.00-11250.20 and 38354.52-37342.00 for NSE Nifty and S&P BSE Sensex respectively. For the week, we witnessed net weekly LOSS of -73.90 points for NSE Nifty and -299.18 points for S&P BSE Sensex. On Monday markets opened lower and continued to drift further as the day progressed. NSE Nifty lost 151.00 points to close the day at 11438.10 and BSE Sensex marked deficit of 467.65 points to end the day at 37922.17. Although markets opened higher in the morning on Tuesday, it lost the grip post noon to close with mega single day loss in recent times. BSE Sensex marked deficit of 509.04 points to end the day at 37413.13 and NSE Nifty lost 150.60 points to close at 11287.50 Market opened on a positive note on Wednesday with short covering ahead of holiday that propelled the sentiment which was termed as a pullback rally. BSE Sensex gained 304.83 points to close at 37717.96 and NSE Nifty scored 82.40 points to end the day at 11369.90. All markets were closed on Thursday on account of GANESH CHATURTHI HOLIDAY. Short coverings and fresh buying at lower levels helped markets to stage positive trades for the second session in a row. In fact FIIs and DIIs were net buyers. Even Mid and Small cap counters too met with buying spree making market breadth hugely positive. BSE Sensex scored 372.68 points to end the day at 38090.64 and NSE Nifty gained 145.30 points to close at 11515.20. Thus both benchmarks closed above the sentimental barriers of 38K and 11.5K respectively. During the week dividend announcements came in from Vedavaag Syst (10%) etc. Dividend Announcements During the week JetInfra turned ex-bonus (1 for 1). Vedavaag Syst (10%) etc. IT Consulting and OFS Techno both has convened board meet on 17.09.18 for considering bonus issue. Ex-Bonus Rupee marked a new historic low of Rs. 72.96 before set- JetInfra ex-bonus (1 for 1) tling around Rs. 71.85 a dollar and thus brought a sigh of Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 28 relief. Crude (Brent) firmed up to 78.40 $ a barrel for the week and kept a tab on general sentiment. Ensuing week that has just four sessions as on 20th Sept. (Thursday) all markets are closed for Muharram. Thus shorter week will have a volatile trades ahead of expiry week. Amidst such a scenario NSE Nifty and BSE Sensex may hover between 11750-11200 and 38800-37000 respectively for the ensuing week. DISCLAIMER : No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Above information is based on the details available as on the date along with market perceptions. Investors should bear in mind that any investments in stock markets are subject to unpredictable market related risks. Author has not traded in above three stocks mentioned in Scrip Watch during last one month and has no holdings or currently has no plans to invest in any scrip referred above. (THE AUTHOUR IS SEBI REGISTERED RESEARCH ANALYST)

Nifty & Sensex Movement during the last week NSE - Nifty Open High Low Close Diff 10-Sep-18 11570.25 11573 11427.3 11438.1 -151 11-Sep-18 11476.85 11479.4 11274 11287.5 -150.6 12-Sep-18 11340.1 11380.75 11250.2 11369.9 82.4 13-Sep-18 Ganesh Chaturthi Holiday NA 14-Sep-18 11443.5 11523.25 11430.55 11515.2 145.3 Net Weekly Losss -73.9 Date Open High Low Close Diff 10-09-2018 38,348.39 38,354.52 37,882.83 37,922.17 -467.65 11-09-2018 38,017.49 38,043.27 37,361.20 37,413.13 -509.04 12-09-2018 37,546.42 37,752.58 37,342.00 37,717.96 304.83 13-09-2018 Ganesh Chaturthi Holiday NA 14-09-2018 37,939.29 38,125.62 37,859.52 38,090.64 372.68 Net Weekly Losss -299.18 Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 29 Scrip Watch - Dilip K. Shah

Hero MotoCorp (Rs. 3186.00) (Code : 500182) (F. V. : 2.00) : Hero MotoCorp Ltd is set to introduce four motorcycles with 200-300cc engine capacity over the next 18 months and sell them through new premium dealerships in a strategy to diversify from its image as a mass- market brand. India’s largest two-wheeler maker will also retail a new range of merchandise and accessories through these outlets, the people said on condition of anonymity. Meanwhile it has hired Virat Kohli, India’s cricket team captain, as its new brand ambassador to promote the new sales network and merchandise. Hero MotoCorp has reported a marginal 0.9 per cent rise in sales at 685,047 units in August 2018. However, it has sold a 3,469,661 units of two-wheelers during April -Aug this year, thereby clocking a growth of 10 per cent. In addition, it has commenced dis- patch of the Xtreme 200R, priced at Rs. 89,900/- (ex-showroom Delhi), to dealerships across the country. Invest. Akzo Nobel (Rs. 1717) (Code : 500710) (F. V. : 10.00) : Paints and coatings maker Akzo Nobel India has reported 5.42 per cent increase in standalone net profit at Rs 43.51 crore for the April-June quarter. It had posted a net profit of Rs 41.27 crore in the year-ago period. Total income during the reported quarter stood at Rs 724.83 crore. It was Rs 728.61 crore during April-June, 2017-18. The company said revenue for June quarter 2017-18 is reported inclusive of excise duty while revenue for April-June of the current fiscal is reported net of GST. Reduction in GST rate for paints from 28 per cent to 18 per cent is expected to drive demand. Benefits arising from rate reduction are being passed on to the customers. Stable volume growth in the decorative segment as well as the industrial segment and raw material price inflation were the highlights of the results for Akzo during the quarter. The stock is on consolidation mode for quite some time. Now, as the festive season is near the corner, the stock will rally. Buy at CMP of Rs.1715. Repco Home Finance (Rs. 535.00) (Code : 535322) (F. V. : 10.00) : RHFL’s loan book grew at moderate rate (11.8%YoY, 2.2%QoQ) to Rs. 100.7bn on the back of higher disbursements (28.4% YoY), predominantly in the Non-Tamil Nadu regions (constituting 41.1% of the current loan book). The loan book from the Non Tamil Nadu regions grew by ~20% YoY, while the Tamil Nadu region demonstrated slow growth of 7% YoY. Repco has consistently grown its loan book at a steady pace and has maintained margins over the period at healthy levels (>4.5%).Net interest income (NII) grew 8.2% YoY, on the back of loan book growing 11.8% YoY despite stress in Tamil Nadu (TN). Pre-provisioning profit (PPP) grew at a muted pace of 2.8% due to an increase of 330bps YoY in cost-income ratio at 18.4%. Net profit grew 8.8% to Rs61 crore. Asset quality remained largely stable YoY with gross NPAs at 3.96% as on 30 Jun’18.The stock has corrected from Rs.620 to Rs.530 level and has seen strong momentum on Friday. Buy.

Disclosures as per SECURITIES AND EXCHANGE BOARD OF INDIA (Research Analysts) Regulation, 2014; • I and / or my clients may have investment in this stocks • I/My family have no financial interest or beneficial interest of more than 1% in the company whose stocks I am recommending • Stop loss is useful for Short / Medium Term investor Only • Smart Investment will not be responsible / liable for any loss arising out of investment based on tis advices • Past performance may or may not be substainedin future " (Dilip K. Shah) Research Analyst : SEBI Regn No. : INH000002152 Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 30 Market Tips - Dilip K. Shah

Axis Bank (Rs. 636.00) (Code : 532215) (F. V. : 2.00) : The Reserve Bank of India (RBI) has approved the appointment of Amitabh Chaudhry as MD & CEO of Axis Bank for three years with effect from January 1, 2019 up to December 31, 2021. As directed by RBI, current CEO Shikha Sharma’s term would continue until December 31, 2018.Further, an improving asset quality & lower credit costs ahead would allow RoEs and RoAs to improve to >13% and 1.2% levels, respectively, by FY20E. We revise our target price upwards to Rs 725 (earlier Rs 650) valuing the stock at 2.7x FY20E ABV.Going ahead, with the bulk of the NPA pain being recognised before he takes over, Mr Chaudhry would focus on growth & maintaining healthy margins. Further, his rich experience in technology would also be an edge for the bank in today’s increasingly digital world of finance. Accumulate. KNR Construction (Rs. 208.00) (Code : 532942) (F. V. : 2.00) : Shares of KNR Constructions rose 6.5 percent intraday Friday after company received bank sanction to finance HAM Project (Hybrid Annuity Mode) worth Rs 1,234 crore.KNR Shankarampet Projects, a wholly owned subsidiary of company has received sanction from bank to finance its HAM project.With the receipt of above sanction letter, the company is well within the time line as specified in the concession agreement for financial closure of the said project.The project include four laning of Ramsanpalle to Mangloor section of NH - 161 in the state of Telangana under Nharatmala Pariyojana with a construction period of 2 years and concession period of 17 years.The company's trailing 12-month (TTM) EPS was at Rs 19.81 per share. (Jun, 2018). The stock's price-to-earnings (P/E) ratio was 10.52. The latest book value of the company is Rs 82.34 per share. At current value, the price-to- book value of the company was 2.53. The dividend yield of the company was 0.19 percent. Buy. Coromandel International (Rs. 406.00) (Code : 506395) (F. V. : 1.00) : The Centre has announced a Rs. 15,053 crore scheme to ensure that farmers growing oilseeds, pulses and copra actually get the minimum support prices (MSP) they are promised for their crops every year. Apart from the Rs. 15,053 crore to be spent over a two-year period to implement the scheme, the Cabinet approved an additional government credit guarantee of Rs. 16,550 crore for agencies undertaking procurement. It will directly benefit Coromandel. Its volumes declined 7.1% YoY in 1QFY19. However, revenue grew 11.8% YoY, primarily on account of multiple price hikes taken over the past few months (Di Ammonium Phosphate (DAP) price increased 25% to Rs. 26,600/ MT). Moreover, the Ministry of Fertilizers' data reveal a strong traction in 2QFY19 volumes so far. Sales volume for July and August stood at over 1.2m MT.The stock has been trading at a P/E of 17.5x over the last five years. The stock is worth accumulation.

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 31 SMART TIPS Smita N. Zaveri

Kirloskar Ferrous (Rs. 100.00) (Code: 500254) :- Shares of this company are listed in B Group and have face value of Rs. 5. The shares touched a 52-week high of Rs. 121 and low of Rs. 72. Promoter holding is 59.56%. The iron and steel interim products manufacturer is registered in Pune, and was established in 1991. The company has scaled up operations over the years through organic and inorganic route. For the year ended March 2018, it declared income of Rs. 1,724 crores and profit of Rs. 38 crores. For June 2018 quarter, income was Rs. 485 crores and profit Rs. 10.46 crores. Its equity is Rs. 68.65 crores, debt Rs. 72.39 crores, and reserves at Rs. 522 crores. Market cap is Rs. 1,362 crores. Centrum Research has given a 'Buy' rating on the stock with a target price of Rs. 140. Adani Ports and Special Economic zone (Rs. 380.00) (Code: 532921) :- Adani Ports and SEZ is the largest private port developer and in the country. Its shares are listed in the A Group and have face value of Rs. 2. Its Mundra port is the fastest growing port in the country, and its volume growth is likely to remain strong in the years to come as imports and exports from India rise. It has also improved capacity utilization at its new facilities. For the June quarter, APSEZ reported consolidated income of Rs. 2,411 crores and net profit of Rs. 697.40 crores. While shares of other port developers are trading at a PE multiple of 38, APSEZ is trading at just 19 times the earnings, and is attractively valued. Kotak Securities has given a 'Buy' rating on this stock with a target price of Rs. 485. Essel Propack (Rs. 117.00) (Code: 500135) :- Shares of this container and packaging sector company are listed in the B Group and have face value of Rs. 2. The shares touched a 52-week high of Rs. 158 and low of Rs. 102. It makes laminated packaging tubes, extruded plastic tubes, caps and closures, and flexible laminates. Its products are mainly used in oral care, cosmet- ics, pharma, food, beauty and healthcare segment. It has about 400 global clients including the likes of Colgate, Unilever, P&G, and GSK. Oral care accounts for 60% of the total income. For 2017-18, it reported income of Rs. 2,424 crores and profit of Rs. 171.60 crores. For June quarter, consolidated income grew 13% to Rs. 635.36 crores, while profit was up 21% to Rs. 41.33 crores. The stock can be seen at Rs. 125 in the short term, and cross Rs. 150 in 2-3 quarters. Magma Fincorp (Rs. 136.00) (Code: 524000) :- Shares of this NBFC are listed in the A Group, and have face value of Rs. 2. The shares touched a 52-week high price of Rs. 193 and low of Rs. 133. Promoter holding in the company is 24.42%. It was established in 1978 as Magma Leasing. Company's equity is Rs. 47.41 crores, while reserves are Rs. 2,272 crores. Company's Net Interest Margin is likely to improve in FY 2019. Recovery can be quick due to micro economic improvements. It provides different kinds of loans, but its focus is on retail sector. As a result, NPAs are less of a problem for it. For June 2018 quarter, it reported consolidated income of Rs. 586 crores, and profit of Rs. 60.16 crores. Its peers are trading at a PE multiple of 39. However, Magma's shares are trading at just 12 times the annual earnings. The stock is trading near the 52- week low, but it can be seen making fresh highs in the medium to long term.

SEBI Registered Research Analyst) * Disclosure :- The author has not brought / sold any stock advised in this news paper during last one month • All stocks rates / indices on 14th Sep., 2018 unless specified o Stoploos is useful for Short - Medium term investors only * Disclaimer :- • Smart Investment will not be responsible / for any loss arising out of investment based on its recommendation. • Though, every care has been taken, we will not responsible for any errors / omissions • All disputes are subject to Ahmedabad jurisdiction Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 32 Smart super duper - Dilip K. Shah

Jindal Steel & Power (Rs233.50) (Code: 532286) :- The company borrowed a huge capital for expansion but faced troubles due to bearish market as a result the debts kept mounting. On the other hand, the promoters got in legal tangle. Therefore, the stock prices came down crumbling. However, after revival in commodity cycle, the stock has witnessed improvement at lower level. In June quarter, the company's income increased from Rs5607.57 crore to Rs9539.60 crore, while it witnessed profit of Rs180.83 crore as against losses of Rs387.09 crore. The company is selling its non-core assets to decrease debt burden. The stock is good option for buying in phased manner. Crest Ventures (Rs.198.00) (Code:511413) :- It has six subsidiaries, five associate companies and one joint venture, which are active in real estate, financial services and investment & credit segments. It develops and manages real estate properties. In financial services segment, the company provides government and non-government intermediary services, interest rate derivatives, Rupee option, currency forward and wealth management services to more than 200 banks, institutions, mutual funds, primary dealers and corporates. It also provides services like mutual fund distribution services, brokerage services and others. As against equity of Rs36.05 crore, the company has reserves of Rs400 crore. In FY2018, the company's profit increased by 147% at Rs94.01 crore. In June quarter, the profit remained at Rs9.36 crore with EPS of Rs3.35. It can be considered for medium to long term investment. Chambal Fertilizer (Rs.162.00) (Code:500085) :- It is listed in A group on BSE. As against equity of Rs416.21 crore, the company has reserves of Rs2089.35 crore. In June quarter, the company's income increased from Rs1966.29 crore to Rs2190.37 crore, while profit increased from Rs140.29 crore to Rs155.38 crore with EPS of Rs3.73. It paid 19% dividend for FY2018. It produces different types of fertilizers and chemicals. It owns two plants at Kota in Rajasthan. It also produces DAP, MOP and SSP along with different types of pesticides and seeds. The government is focusing on doubling income of the farmers and the monsoon season has been good, so the company may benefit from it. The stock is trading in one range so it can be considered for investment. Maharashtra Seamless (Rs.478.00) (Code:500265) :- DP Jindal Group's flagship company was set up in 1988 and it came up with IPO in 1991. It manufactures different types of pipes and it also owns green power capacity. In June quarter, the company's income increased from Rs448.48 crore to Rs607.43 crore, while profit increased from Rs37.25 crore to Rs100.35 crore. The company has huge reserves of Rs2896 crore. It paid 120% dividend for 2018. The stock has witnessed bullish trend in last few years. Still the performance of the company and future growth statement make it a good option for investment at current rate. It is advised to increase investment in stock in phased manner.

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 33 A.J. Diwan (Mumbai) Diwan-E-Khas E-mail : [email protected]

IT'S GANESH & quote's BLESSINGS

After losing about 900 points on first two days, markets recovered after Ganpati blessing. There was all round panic as rupee crossed Rs.72 and crude was going up. The situation could have destroyed our economy and growth. The galloping rupee stabilized in last two days and markets covered up at least 75% of lost ground on last two days. On Wednesday, market took support at 50 days average. Now Nifty has to remain above 11385 for two days and if it remains above 11430/460.we may see further upside. FIIs were sellers in market on first two days of the week. DIIs turned buyers. FIIs are taking full advantage of rising dollar. After good results, Reliance Capital went down in good market shows ADAG has lost confi- dence of public. In one jolt share may lose support of Rs.405 any time. For shorting Rs.425 is s/l. We like to point another share that is weak and share is Bank of Baroda. On Friday also share could not cross Rs.140 resistance level despite good market. This share may go below Rs.1360 in days to come. One time blue-chip company Unitech has gone down to Rs.3. We feel that take risk of Rs.1.5 and buy share as per your pocket. ICICI AGM has not gone well for Ms.Kocher. Any rise its good short. We have observed that when market rises, steel shares are galloping. JSW has resistance at Rs.413.vedanta and Hindalco look good for investments. Wednesday up trend was maintained on Friday. Index went up by 372 points. Titsbits: as per closing of Friday nifty has support at 11480. Asian paint has closed above resistance level of rs1325.keep s/l of rs.1320 for and trade positive. Adani ports if remains above Rs 385 can go up to Rs 390/395. JSW has resistance at rs.413 and Jet Airways resistance at Rs. 270. This should be s/l for target of rs.255. Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 34 Investment Ideas telegram.me/rupeegains7

NIFTY :- For next week NIFTY has strong support around 11430 levels. Break will take it to 11380-11320 levels. On the upper side NIFTY will face strong hurdle at 11605 levels, cross over with volume and close above will create short covering at take NIFTY up to 11640-11700 levels… BANK NIFTY :- For next week BANK NIFTY has strong support around 26990 levels. Break will take it to 26895-26770 levels. On the upper side BANK NIFTY will face strong hurdle at 27320 levels, cross over with volume and close above will create short covering at take BANK NIFTY up to 27405-27550 levels… INVESTMENT IDEAS… RITES LTD (541556 & NSE) (258.55) (Face Value Rs.10) :- Few days ago this company came out with an IPO at Rs.185 per shares. After listing it zoomed to Rs.326.55 in short time and now it is available around Rs.258. Company has posted stable numbers for Q1FY19 where its PAT zoomed 18.8%. Its order book stands at Rs.5517crore as on 30th July 2018. Everyone, whose financial advisor is allowing to trade in this stock for short to medium term can watch with a stop loss of Rs.245. RUCHIRA PAPERS LTD (532785 & NSE) (157) (Face Value Rs.10) :- Incor- porated in 1980, Ruchira Papers is a Yamuna Nagar based company, which manufactures paper and paper products. The company is engaged in the process of manufacturing writing and printing paper and Kraft paper. During the Q4FY18, the Company has undertaken implementation of Modernization program at Kraft Paper unit. Company has spent almost Rs.32crore in this modernization program. It will to get the same reflected in topline and bottom-line of Q2 of FY19 onwards. Its PAT has grown 44% CAGR in last 4 years so PEG ratio is 0.22 which is highly undervalued. Everyone, whose financial advisor is allowing to trade in this stock for medium to long term can watch with a stop loss of Rs.140. LAMBODHARA TEXTILES LTD (590075 & NSE) (56.45) (Face Value Rs.5) :- Coimbatore based Lambodhara Textiles Ltd was founded in 1994 with a capacity of 3,024 spindles. Over the years the company has grown in size and currently has a capacity of 37,856 spindles, with 33,224 spindles producing fancy yarns. The mill is fully modernized with state of art technology and infrastructure. Company produce yarns in a count range from 10s to 60s. Company specializes in manufacturing slub yarns, multi count and multi twist yarns, siro yarns and neppy yarns. It produce yarns using Polyester, Polyester variants, Viscose, Modal, Excel and Flax as raw materials. It has an equity capital of just Rs.4.79crore supported by reserves of around Rs.45.34crore. The promoters hold 70.11% of the equity capital, which leaves 29.89% stake with the investing public. Its share book value works out to Rs.52.34 and the price to book value ratio stands at just 1.07x. For Q1FY19, its PAT zoomed 49.48% to Rs.1.45crore from Rs.0.97crore in Q1FY18 on higher income of Rs.40.93crore fetching an EPS of Rs.1.51. Currently, the stock trades at a P/E of just 7.75x. It is regular dividend paying company and it has paid 20% dividend for FY18. In February 2018, Company has allotted 5,00,000 Equity Shares to Promoters at a face value of Rs.5/- each and premium of Rs.75. Its 52 week high rate is Rs.91.7 which was formed on 15th February 2018. Stock almost corrected 39% from 52 week high. Everyone, whose financial advisor is allowing to trade in this stock for medium to long term can watch with a stop loss of Rs.45.

Cont.... Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 35 R SYSTEMS INTERNATIONAL LTD (532735 & NSE) (41.6) (Face Value Re.1) :- R Systems, founded in 1993, is a specialized IT Services & Solutions and IT-enabled Services provider catering to a wide range of global customers. Its IT services and solutions span five major verticals which include Telecom & Digital Media, Banking & Finance, HealthCare, Manu- facturing & Logistics, and Government Services. Ever since its inception, they have grown in size and capability and currently operate from 11 development and service centers spread across Asia Pacific, Europe, and North America. Company serves customers worldwide using their global delivery model and 2050+ expert resources. Company has an equity capital of Rs.12.32crore and reserves of Rs.268.62crore. The promoters hold 50.88%, Well-known investor BHAVUK TRIPATHI holds 35.38% while investing public hold only 13.74% stake in this company. For Q2CY18, it has reported net sales of Rs.168.84crore as against Rs.147.92crore in Q2CY17. Profit after tax has gone up 75.29% to Rs.8.94crore as against Rs.5.10crore. During H1CY18, its PAT soared 30.51% to Rs.12.79crore fetching an EPS of Rs.1.04. Currently, the stock trades at a P/E of 19.8x.It has paid 60% interim dividend for CY18. Everyone, whose financial advisor is allowing to trade in this stock for medium to long term can watch with a stop loss of Rs.36.

Disclosures: At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be. Disclaimer: Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by anybody.

BULLISH INDIA YOUR SEARCH FOR TOP STOCK MARKET RESEARCH HOUSE ENDS HERE INDIA’S FAVOURITE STOCK MARKET TIPS PROVIDER YOUR ONE CLICK CAN CHANGE YOUR LIFE (Sebi Registered) www.bullishindia.com 9988137985 Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 36

NIKHIL BHATT MARKET TREND (+919979380808) WWW.INVESTMENTPOINT.IN PERIOD : 17-9-2018 to 21-9-2018

NIFTY FO Range @ 11474 TO 11606 Point In Short Term…!!!

Dear Traders…. For the Trading Period on 17.09.2018 TO 21.09.2018 NIFTY FO CLOSED @ 11538 AS ON 14.09.2018 NIFTY FO has resistance at 11575 - 11606 Point; above which other resistance levels are at 11647 - 11670 Point with highly Volatile Trend, In Downside support levels are at 11505 - 11474 Point; below 11474 Point, other support levels are at 11430 - 11404 Point. I am positive for next bullish trend only above @ 11606 Point but be with the trend. Let the market decide further moves. As we are saying from many days Buying is suggested in falls only...and it's still a better strategy in the given Scenario...!!! Regarding Long term positions, it is preferable to remain cautious now...!! If NIFTY FO crosses @ 11606 Point, again then the upper side target is quite high and it may touch @ 11647 Point in short term...!!! BANK NIFTY FO CLOSED @ 27202 AS ON 14.09.2018 BANK NIFTY FO Range @ 27007 TO 27373 Point In Short Term…!!! BANK NIFTY FO has resistance at 27270 - 27303 Point; above which other resistance levels are at 27373 - 27404 Point with highly Volatile Trend, In Downside support levels are at 27133 - 27073 Point; below 27073 Point, other support levels are at 27003 - 26808 Point. I am positive for next bullish trend only above @ 27373 Point but be with the trend. Let the market decide further moves. As we are saying from many days Buying is suggested in falls only...and it's still a better strategy in the given Scenario...!!! Regarding Long term positions, it is preferable to remain cautious now...!! If BANK NIFTY FO crosses @ 27373 Point, again then the upper side target is quite high and it may touch @ 27404 Point in short term...!! Golden Stocks For Trading For the date - 17.09.2018 to 21.09.2018 1. HDFC BANK (2032) : It is suggested to Buy @ Rs 1993 with SL of Rs 1986 for the target of Rs 2047 - 2057; below Rs 1986 it can fall up to RS 1980 - 1977 levels. If it crosses Rs 2057 level than expect nonstop rally up to Rs 2073....!! 2. AJANTA PHARMA (1223) : Trading point of view Buy @ Rs 1208 With SL of Rs 1200 for the target of Rs 1247 - 1260 level below Rs 1200 It can show further downfall up to Rs 1188 …..!!! 3. M & M (952) : Buy @ Rs 933 levels considering minor support of Rs 926 and stop loss of Rs 919 for an upper target of Rs 966 - 973 levels. Below Rs 919 it can slip up to RS 913 - 909 levels…!!! 4. SUN PHARMA (663) : Buy @ Rs 647 levels considering minor support of Rs 644 and stop loss of Rs 640 for an upper target of Rs 677 - 690 levels. Below Rs 640 it can slip up to RS 633 - 630 levels…!!! 5. AXIS BANK (640) : Buy @ Rs 623 levels considering minor support of Rs 618 and stop loss of Rs 616 for an upper target of Rs 662 - 670 levels. Below Rs 616 it can slip up to RS 611 - 606 levels…!!! Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 37 6. DEN NETWORK (55) : Delivery base Buy @ Rs 50 of this stock near @ Rs 47 with SL of Rs 44 for the target of Rs 61 - 66 level. It is very good for medium term position also…!!! 7. MAWANA SUGAR (60) : This stock is looking very good to Buy @ Rs 56 with SL of Rs.53 for the target of Rs 64 - 70 Levels below Rs 53 is stock shall witness free fall…!!! 8. BEML LTD (760) : It is suggested to Sell with SL Rs 777 for the target of Rs 747 - 740 below @ Rs 740 it can slip up to Rs 737 - 730 level. Above Rs 777 level will take the stock to Rs 788 - 797…!!! 9. RELIANCE CAPITAL (420) : It is suggested to Sell @ Rs 437 with SL of Rs 444 for the target of Rs 409 - 404 ; below Rs 404 it can fall up to RS 396 - 390 levels. If it crosses Rs 437 level than expect nonstop rally up to Rs 447....!! 10. BPCL (356) : It is suggested to Sell with SL Rs 366 for the target of Rs 347 - 340 below @ Rs 340 it can slip up to Rs 337 - 333 level. Above Rs 366 level will take the stock to Rs 373 - 377..!!! 11. TATA MOTORS (266) : It is suggested to Sell @ Rs 273 with SL of Rs 277 for the target of Rs 257 - 250 below Rs 250 it can fall up to RS 247 - 244 levels. If it crosses Rs 277 level than expect nonstop rally up to Rs 286....!! Note: - Before Act Please refer Terms & conditions, Disclaimer on www.nikhilbhatt.in

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Current IPO list Grey Market Premium IPO Calendar IPO Allotment Status IPO Performance Tracker Free IPO Email Alerts Visit : http://www.chittorgarh.com Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 38 Primary Market - Dilip K. Shah Shraddhas are starting from September 25 so mainboard and SME IPOs rush toward market Total 48 companies have obtained Sebi approval for IPO but they have adopted Wait&Watch PSU IPOs of Ircon and Golden Reach will breathe a new lease of life in the primary market Ircon International may repeat rights issue so fancy may increase Garden Reach issue with price band of Rs115 to 118 may get good response Aavas Fin which is entering into the market after a long time may witness fancy due to stake of leading banks This week total seven SME IPOs - 4 BSE and 3 NSE - are in the market Ahlada Engg's NSE ISE IPO gets good response: may give good return Ranjeet Mech's BSE SME IPO got oversubscribed on the first day: May get listed with premiums Kshitij's issue with Rs35 a share will open on September 21 : the valuation seems reasonable Due to high valuation Sky Gold issue may do U.H.Zaveri Ranjeet Mech's IPO got 6.51 times subscription in the first two days Three NCDs issues that opened last week got poor response: Indiabulls Com's issue closed Sumit Woods and Add-Shop SME IPO got listed with premiums How and when will be subscription and listing in Ircon Int's issue.

There were indications since beginning of September that the market will become active. The secondary market is in tizzy after bullish trend for more than six weeks. In such situation, the market is witnessing floods of main board, SME and NCDs issues. The government is expediting the PSU disinvestment plan. Moreover, the private companies raised Rs67,147 crore through IPO last year, which has reached only up to 28,508 crore in the current year. Till now 48 companies have obtained SEBI nod for IPO but they have

Govt’s Disinvestment adopted Wait&Watch policy. So no mainboard IPO has hit the mar- Drive Co. Name Rs. Cr. ket in last one month. Bharat Dynamics (Mar) 960 Hindustan Aero. (Mar) 4113 * The two PSU IPOs - Ircon International and Garden Reach Mishra Dhatu (Mar) 438 RITES (June) 466 Shipbuilders and Engg - may make primary market vibrant and IRCON Intl. (Sept.) 467 Garden Reach (Sept.) 344 pave way for others.

Subscription Figures of SME IPO (Dt. 7-9-2018) * NCDs :- Three NCDs issues were in IPO Listing Day Subscribed Synergy Green BSE SME Issue Closed on 11-9-2018 1.06x the market. Indiabulls Commercial NCDs Rajshree Polypack NSE SME Issue Closed on 12-9-2018 4.97x AKG Exim NSE SME Issue Closed on 14-9-2018 1.12x issue got close on September 14 with 3.13 Ahlada Engineers NSE SME 3rd Day Subscribed 0.27x Ranjeet Machatronics BSE SME 2nd Day Subscribed 6.51X Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 39 times subscription. Tata Capital Fin got Grey Market Premium SME IPOs Offer Price Premium Kostak Price Subject to Sauda 0.82 times and Aadhar Housing got 2.13 (Rs.) Min.Appl.(Rs.) (Confirm) (Rs.) Ircon International 470 to 475 48 to 50 275 to 300 1500 - 1700 times subscription on the first day. More (H : 120 / L : 32) Aaavas Financiers -- 148 to 150 -- -- details are given in separate box. (H : 200 / L : 140) Do not subscribe for IPO by just seeing premium price as it may change anytime Gujarat Cadre's Atanu Chakraborty before listing : Subscribe only considering fundamental of the Companies For latest grey market premium please check everyday has replaced Neeraj Kumar as head of www.smartinvestment.in

DIPAM, who has expedite the disinvestment process. He not only cut down IPO size of IRCON and Garden Reach but also lowered offer price by 15 to 20%. * Mainboard IPOs:- • IRCON Intl. :- Attraction of small investors in Rail Ministry's company is increasing. The Mini Ratna company has orders worth Rs22,400 crore on hand. The company has good track record of profit and dividend payment. The issue is small in size so it will be difficult for HNIs to subscribe the issue through funding. More details are given in separate box. Subscription :- It may get 12-15 times subscription in retail. Allotment-Refund :- Allotment could be on September 26 and unblocking of fund on Sep- tember 27. Listing :- It may get listed around Rs550-575 on September 28. • Garden Reach :- The PSU will offer 2,00,46,600 fresh equity and raise Rs236 crore through OFS with offer price of Rs115-118 a share. Retailers will get 5% discount. Minimum application will be for 120 shares. More details will be given next week.

Tentative Timetable for SME IPOs Tentative Rajshree Pol. Ranjeet Mac. Ahlada Engg. Ircon Intl. Kshitij Poly. (NSE SME) (BSE SME) (NSE SME) (Main Line) (NSE SME) Issue Closed 12-9-2018 17-9-2018 18-9-2018 19-9-2018 27-9-2018 Finalization of Basis of Allotment 18-9-2018 21-9-2018 24-9-2018 25-9-2018 3-10-2018 Unblocking of Fund 19-9-2018 25-9-2018 25-9-2018 26-9-2018 4-1-2018 Credit of Equity Shares 19-9-2018 25-9-2018 25-9-2018 26-9-2018 5-10-2018 Listing 24-9-2018 26-9-2018 27-9-2018 28-9-2018 8-10-2018 Listing Information of BSE & NSE SME IPO Co. Name BSE Listing Offer Listing Listing Listing Listing CMP Code Date Price Price Day Day Day (Rs.) (Rs.) High Low Close 14-9-18 Sumit Woods Ltd. NSE SME 10-09-18 45 47 48.9 47 47.95 45.00 Add-Shop Promotions 541865 10-09-18 26 28.2 29 28.05 28.70 27.50 Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 40 Main - line IPO (Non SME)

Sr Company Issue Open Dt. Issue size Offer price Min. Rs. 1,00,00 Rs. 2,00,000 Listing Lead Rating Remark Issue Close Dt. (Rs. Cr.) (Rs.) App. Limit Limit Manager % 1. IRCON 17-9-2018 99,05,157 Eq. Shares 470 to 475 30 Shares 210 Shares 420 Shares BSE Axis Capital 42% International 19-9-2018 (Rs. 470.49 Cr.) (Rs. 10 Disc. (Rs. 13950) (Rs. 97650) (Rs. 195300) NSE IDBI Capital Limited For RII & SBI Capital Listing Gain (Book Building) Employee 2. Garden Reach 24-9-2018 2,92,10,760 Eq. Shares 115 to 118 120 Shares 840 Shares 1680 Shares BSE IDBI Capital NEXT Shipbuilders 26-9-2018 (Rs. 344.69 Cr.) (Rs. 5 Disc. (Rs. 13560) (Rs. 94920) (Rs. 189840) NSE Yes Securities WEEK & Engg. For Retailers (Book Building) 3. Aavas 25-9-2018 Fresh Issue : Rs. 400 Cr. ------BSE Citigroup, NEXT Financiers 27-9-2018 OFS : 1,62,49,359 Eq. -- NSE Edelweiss, HDFC WEEK (Book Building) HDFC, ICICI Sec. Spark IRCON International Garden Reach Ship. • Aavas Financiers :- Private sector fi- Retailers may apply Retailers may apply Price Band Rs. 470 to 475 (Retail Discount Price Band Rs. 115 to 118 (Retail Discount nance company is entering into the mar- and Employee Discount Rs. 10 Per Equity Rs. 5 Per Equity Share on Offer Price) (118- Share on Offer Price) (475-10 = 465 x 30) 5 = 113 x 120) ket after a long time. It will open on Sep- Shares Amt. Shares Amt. Shares Amt. Shares Amt. 30 13950 240 111600 120 13560 960 108480 60 27900 270 125550 240 27120 1080 122040 tember 25 and close on September 27. 90 41850 300 139500 360 40680 1200 135600 120 55800 330 153450 480 54240 1320 149160 Company will offer fresh equity worth 150 69750 360 167400 600 67800 1440 162720 180 83700 390 181350 720 81360 1560 176280 210 97650 420 195300 840 94920 1680 189840

BSE SME IPO Sr Company Issue Open Dt. Issue size Offer price Minimum Rating Remark Issue Close Dt. (Rs. Cr.) (Rs.) Applications Size (Out of 50) 1. Ranjeet 12-9-2018 18,00,000 Eq. 25 6000 Shares 36 % Mechatronics 17-9-2018 (Rs. 4.50 Cr.) (Rs. 1,50,000) Apply for Mid Term 2. Sky Gold 18-9-2018 14,20,000 Eq. 180 800 Shares Ltd. 21-9-2018 (Rs. 25.56 Cr.) (Rs. 1,44,000) 3. Mac Hotels 19-9-2018 8,10,000 Eq. 24 6000 Shares NEXT WEEK Limited 25-9-2018 (Rs. 1.94 Cr.) (Rs. 1,44,000) 4. Manorama 21-9-2018 34,04,400 Eq. 181 to 188 600 Shares NEXT WEEK Industries 25-9-2018 (Rs. 64 Cr.) (Rs. 1,12,800) 5. Innovative 24-9-2018 30,66,000 Eq. 36 to 40 3000 Shares NEXT WEEK Ideals 26-9-2018 (Rs. 12.26 Cr.) (Rs. 1,20,000) NSE SME IPO Sr Company Issue Open Dt. Issue size Offer price Minimum Rating Remark Issue Close Dt. (Rs. Cr.) (Rs.) Applications Size (Out of 50) 1. Ahlada 11-9-2018 34,05,000 Eq. 147 to 150 1000 Shares 40% Engineers 18-9-2018 (Rs. 51.07 Cr.) (Rs. 1,50,000) Apply for Short Term 2. Spectrum 17-9-2018 39,80,000 Eq. 65 2000 Shares 30 % Electrical 21-9-2018 (Rs. 25.87 Cr.) (Rs. 1,30,000) AVOID 3. Kshitij 21-9-2018 25,00,000 Eq. 35 4000 Shares NEXT WEEK Polyline 27-9-2018 (Rs. 8.75 Cr.) (Rs. 1,40,000) Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 41 Rs400 crore and 1,62,49,399 shares under OFS. AU Small Banks hold a big stake in it. IPO may witness fancy. * SME IPOs:- • BSE SME IPOs:- Ranjeet Mechatronics :- The issue worth Rs4.50 crore with fixed price of Rs25 a share opened on September 12. Details were given last week. It got fully subscribed on the first day and 6.51 times on second day so the subscription may cross 10 times by September 17. More important is the fact that this is first ever issue by lead manager Beeline Broking Ltd so it could be termed as a big achievement for the lead manager. Sky Gold :- The issue with fixed price of Rs180 will open on September 18 and close on September 21. As RHP is not available, the detail analysis is not possible. However, the aggressive pricing may lead to believe that it may repeat the flop show of UH Zaveri and Palms Jewels issues. Rating and recommendations will be available on www.Smartinvestment.in next week. Details of Mac Hotels and Manorama Ind will be given next week. * NSE SME IPO:- • Ahlada Engg. :- The issue with price band of Rs147 to 150 has opened on September 11. Rs51 crore issue has got 20% subscription on the first day and 0.28 times on second day. The issue may witness fancy due to tie-up with Tata Steel, strong fundamentals, reasonable

GREY MARKET MOVEMENT Entry of three main board IPOs in the market turns it active IRCON IPO premium witnesses high volatility Aavas Fin IPO premiums start at 180 Four main board issues are entering into the market by end of September so grey market has turned active after a long break. IRCON :-premiums were 36/38 last week, which has spurted to 115/120 but crumbled to touch bottom of 32 and now are quoted around 48/50. Interest rates are around 300 and subject to rates went up to 2200-2500 but now are around 1500-1700. The deals are limited. Aavas Financiers :- with announcement of price band, the market has witnessed premiums. The premiums started at Rs180 on Saturday and went up to Rs200 and are now around 148-150. The IPO may witness fancy due to stake held by A.U.Bank, HDFC, ICICI and others. Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 42 valuation, which may lead to good return List of Main Board IPOs in the Pipeline in short to medium term. DRHP Filed – SEBI Approval Awaited Aakash Educational Ser. Century Metal Recycling PNB Metlife India Insurance • Spectrum Electricals :- The issue Aavas Financiers Chalet Hotels Puranik Builders Affle India L Craftsman Automation Senco Gold AGS Transact Technologies Dodla Dairy Shyam Metalics and Energy with fixed price of Rs65 will open on Sep- Ami Organics Harsha Engineers Spandana Sphoorty Angel Broking Hinduja Leyland Finance Srei Equipment Finance Anmol Industries Milltec Machinery Studds Accessories tember 17 and close on September 21. ASK Investment Managers Mrs. Bectors Food Vectus Industries Avana Logistek Muthoot Microfin Vishwaraj Sugar Industries More details are given in separate box. Bharat Hotels Nihilent Xelpmoc Design and Tech SEBI Approval Received (PAST 4 MONTHS) The issue may be risky affair. Route Mobile G R Infraprojects Atria Convergence Techno Mazagon Dock Shipbuilders K P R Agrochem Sandhya Marines • Kshitij Polyline :- The issue with fixed SembCorp Energy India Lodha Developers Genius Consultants Montecarlo Dinesh Engineers Rail Vikas Nigam Crystal Crop Protection Shakun Polymers Devi Seafoods price of Rs35 will open on September 21 ReNew Power Flemingo Travel Retail Fine Organic Industries PN Gadgil & Sons Nekkanti Sea Foods and close on September 27. More details SEBI Approval Received (>4 months ago)

John Energy Indian Renewable Energy Seven Islands Shipping will be published next week as DRHP is Nazara Technologies Barbeque-Nation Hos. Prince Pipes and Fittings Capricorn Food Products Acme Solar Holdings Gandhar Oil Refinery not available. However, the company's Krishna Institute of CMS Info Systems Patel Infrastructure Reliance General Ins. Co. product portfolio is wide and promoters Subscription figure of Tata Capital Financial are experienced. The company's income, Services NCDs Issue (Issue Closes on 21-9-18) No. Shares Issue Subscribed EBITDA and profit has been growing for Offered/ 10-9-18 11-9-18 12-9-18 14-9-18 Reserved three years. Category I 4000000 0.04x 0.05x 0.07x 0.07x Category II 4000000 0.25x 0.26x 0.27x 0.28x * Insight into upcoming issues:- Category III 6000000 1.61x 0.27x 0.28x 0.30x Category IV 6000000 0.23x 1.94x 2.09x 2.21x Four issues got SEBI approval : SREI Total 20000000 0.61x 0.72x 0.78x 0.82x Subscription figure of Equipment Finance, Hinduja Layland, Aavas and Indiabulls Commercial Credit NCDs Issue Panware products have got SEBI approval for IPO. No.Shares Issue Subscribed (Closed) Offered/ 11-9-18 12-9-18 14-9-18 SREI Equipment will offer fresh equity worth Rs1100 Reserved Category I 1000000 20.00x 20.00x 20.00x crore and 43,86,765 shares under OFS. Category II 1000000 0.01x 0.01x 0.02x Category III 4000000 0.95x 0.96x 2.04x Category IV 4000000 0.64x 0.72x 0.80x Shree Bajrang Power :- It has filed DRHP for Rs500 Total 10000000 2.64x 2.67x 3.13x crore issue. Subscription figure of Aadhar Housing Fin. Shriram Properties :- It plans Rs1500 crore issue Issue Closes No.Shares in March. on 28-9-18 Offered/ 14-9-18 Reserved Category I 1000000 10.00x Category II 500000 0.05x Category III 1750000 0.06x Category IV 1750000 0.30x Total 5000000 2.13x Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 43 IRCON International Main Line IPO Opens on 17th September & Closes on 19th September Price Band Rs. 470 to 475; Listing on NSE BSE It’s 42 year Old, Profit making, dividend paying debt free company Financial profit is dismal but considering strong order book and Reasonable pricing, investor may apply for listing gain Incorporated in 1976, Delhi based IRCON International Limited is a government company (under the Ministry of Railways) engaged in the business of engineering and construction. The company specializes in major infrastructure projects including highways, railways, bridges, flyovers, electrical and mechanical works and development of commercial, residential and industrial areas. It was ranked 248 in the list of 250 of top 250 global contractors by USA based Engineering News Record (ENR). It has strong order book of Rs. 22400 Cr. IRCON is headquartered in Delhi and has 26 project offices, 5 regional offices in India and 5 overseas project offices in Sri Lanka, Bangladesh, Malaysia, South Africa, and Algeria. Issue Details • Issue Opens on 17th September & Closes on 19th September 2018 • Object of the issue: Disinvestment of Equity Capital, Listing Benefits. • Issue Size : 99,05,157 Equity Shares • Face Value Rs. 10, Total Rs. 470.49 Cr. • Price Band Rs. 470 to 475 Per Shares (Rs. 10 Discount to RII & Emp.) • Minimum Lot Size 30 Shares, Listing NSE BSE • BRLM : Axis Capital, IDBI Capital, SBI Capital • Registrar : Karvy Computer Share Pvt. Ltd. • Company Management : President of India. Financial Performance Particulars (Rs. Cr.) FY 14 FY 15 FY 16 FY17 FY 18 Total Revenue 4150 3232.51 2908.64 3301.35 4212.40 Profti After Tax 746 563.03 393.11 383.98 411.58 EPS -- -- 29.72 38.79 42.13 RONW (%) -- 16.33 10.79 10.07 10.98 • Average of last 3 Yrs. EPS Rs. 40.62 & RONW 10.65% • Pre Issue P/BV Ratio 1.16 (NAV Rs. 398.51) • Post IPO asking P/E on fully diluted equity : 10.90 • Pre Issue Equity Capital (94.05 Cr.) OFS, • Post Issue Equity Capital : 94.05 Cr. • BRLM’s Performance : Total 54 issues Handaled in Last 3 Years, 34 Issues in premium & 20 Issues in Discount. Other side of Coin • Average cost of acquisition of equity share to the promoter is Rs. 19.83 • It has issue bonus share in the ratio of 1:1 in April 2005, 1:1 in Oct. 2012 and 4:1 in Jan. 2017 • Negative cash flow in FY 18 • If we compare financial performance of FY 14 with next 4 years, then company growth is almost zero • Profit margin is in decline mode. IN FY 14 it was 17.6% which can down to 9.5% in FY 18 • On construction front ROE are lower than listed peers like KNR Com., PNC & Dilip Buildcon • Company will not receive any proceeds from this offer. Recommendation : Its 42 years old PSU for sale. MINI RATNA Continuously profit making and divided paying debt free company from Railway ministry: Considering strong order book and reasonable pricing, investors may apply for listing gain Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 44 Spectrum Electrical NSE SME IPO Opens on 17th September & Closes on 21st September Offer price Fixed Rs. 65 ; Listing on NSE SME Sudden jump in FY 18 is doubt full: Considering poor track record of merchant banker, Better to avoid this expensive IPO Incorporated in 2008, Jalgaon (Maharashtra) based Spectrum Electrical Industries Limited is a company engaged in the business of design and manufacturing of electrical, automobile and irrigation components. The company is a contract manufacturer and component suppliers to leading industry players. The manufacturing unit of the company is located at Jalgaon & Nashik, Maharashtra. Issue Details • Issue Opens on 17th September & Closes on 21st September 2018 • Object of the issue : Set up a Zinc Plating Plant, Working Capital Requirment, Issue Expenses. • Issue Size : 39,80,000 Equity Shares • Face Value Rs. 10, Total Rs. 25.87 Cr. • Offer price Rs. 65 Per Share • Minimum Lot Size 2000 Shares, Listing NSE SME • BRLM : Arihant Capital Markets Ltd. • Registrar : Bighsare Services Ltd. • Company Management : Deepak Chaudhari. Financial Performance Particulars (Rs. Cr.) FY 15 FY 16 FY17 FY 18 Total Revenue 0.14 2.16 6.60 119.83 Profit After Tax 0.02 0.30 0.53 5.90 EPS (Rs.) -- 0.60 1.07 5.30 RONW (%) -- 5.72 9.21 17.50

• Average of last 3 Yrs. EPS Rs. 3.11 & RONW 12.77% • Pre Issue P/BV Ratio 2.15 (NAV Rs. 30.28) • Post Issue : P/BV Ratio 1.65 (NAV : 39.42) • Pre IPO P/E Ratio : 12.26 • Post IPO asking P/E on fully diluted equity : 16.67 • Pre Issue Equity Capital 11.14 Cr. • Post Issue Equity Capital : 15.12 Cr. • BRLM’s Performance : Total 2 issues Handaled, In Last 1 Listing in Premium. Other side of Coin • The Average cost of acquisition of Equity share to the promoter is Rs. 19.44 • Cash flow negative in FY 16 & FY 18 • Top five customers accounted for 80% of revenue which is risky business • All premises, manufacturing unit are not owned by the company, Its on lease • Sudden jump in FY 18 results - creates doubt. • Sudden jump in Top-bottom line of FY 18 creates doubt. Recommendation : Its expensive issue with poor track record of merchant banker. Investors may avoid this IPO as fundamentals seem something cooked. Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 45 Sky Gold Ltd. BSE SME IPO Opens on 18th September & Closes on 21st September Offer price Fixed Rs. 180; Listing on BSE SME AS RHP is not available till date, on the basis of DRHP It's aggressively priced IPO & May be another U.H. Zaveri Post Listing: Avoid It Incorporated in 2008, Mumbai based Sky Gold Limited is a business engaged in the business of designing, manufacturing, and marketing of Gold jewelry. The company operates from a 2,740 sq. ft. sole manufacturing facility located in Mulund, Mumbai. The facility is used to make casting based jewelry using rubber dye, wax molds, and machines. It has its central sales offices at Mumbai. In addition, the company has also set-up sales offices in Kerala and Telangana to cater to the Southern regions of India. Sky Gold has recently started export operations handled by its Mumbai sales office. Between 2013-14 and 2017-18. Issue Details • Issue Opens on 18th September & Closes on 21st September 2018 • Object of the issue: Repayment of Loans, Working Capital Requirement, General Corporate Purposes. • Issue Size : 14,20,000 Equity Shares • Face Value Rs. 10, Total Rs. 25.56 Cr. • Offer price Rs. 180 Per Share • Minimum Lot Size 800 Shares, Listing BSE SME • BRLM : Aryaman Financial Services Ltd. • Registrar : Link Intime (I) Pvt. Ltd. • Company Management : Mr. Mangesh Chauhan, Mr. Mahendra Chauhan, Mr. Darshan Chauhan Financial Performance Particulars (Rs. Cr.) FY 15 FY 16 FY17 FY 18 Total Revenue 127.77 183.31 164.41 548.89 Profit After Tax 0.82 0.94 0.93 2.63 EPS (Rs.) -- 2.53 2.38 6.65 RONW (%) -- 9.48 8.65 19.48

• Average of last 3 Yrs. EPS Rs. 4.52 & RONW 14.21% • Pre Issue P/BV Ratio 5.28 (NAV Rs. 34.11) • Industry Peer Group PE Ratio : 30.7 • BRLM’s Performance : Total 19 issues Handaled, In Last 18 Listing. 13 Issues in Premium & 5 Issues in Discount. Other side of Coin • Average cost of acquisition of Equity shares to the promoter is Rs. 15.85 • It has issued 29,64,955 Shares as a bonus in the ratio of 3:1 on 27th March 2018 • Top-10 Customers constituted 90.88% revenue of net sales in FY 18 which a very risky business • Low net profit margin business • Out - standing debt Rs. 518.25 which is substantial high. • Reported negative cash flow in the past years. • Certain portion of IPO proceed will be used to repay a loan of promoter. Recommendation :- As RHP is not available till date, perfect review is not possible. However on the basis of DRHP - IPO is aggressively price and maybe another U.H. Zaveri IPO post listing. Investors may avoid this issue. Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 46 Smart Best Buy S. N. Zaveri Concor : Volume will increase on freebies decision PVR : Maharashtra Govt.’s stance a major relief L&T looks more attractive after buy back announcement ICICI Lombard : Third Party policy decision will benefit Aurobindo Pharma : Strong upmove makes more attractive

Concor (Rs. 645.00) (Code : 531344) (F. V. : 5.00) :- Container Corp. of India Ltd’s (Concor) decision to offer 45 days of free storage to its customers at its export-import (Exim) container handling facilities has come as a surprise. The stock dropped initially but has recovered ground subsequently. The flip-flop points to a degree of wariness among investors. Concor derived about ?253 crore from storage and warehousing, constituting 4% of FY18’s revenue. The latest move will erode a significant part of these revenues. Given its extensive network and reach, the firm should be able to wield this freebie to gain volume market share. If customers opt for stuffing and de-stuffing of containers at Concor’s facilities, then the company can benefit from related charges. Buy. PVR (Rs. 1379.00) (Code : 532689) (F. V. : 10.00) : PVR is the largest multiplex operator in the industry with around 700 screens across India. The Maharashtra government com- pletely retraced its earlier stance in response to a public interest litigation (PIL). It is not in favour of allowing outside food in multiplexes citing security reasons. The PIL challenged the current prac- tice wherein multiplexes prohibit customers bringing in and consuming food and beverages (F&B) from outside. PVR's recent decision to acquire SPI Cinemas (SPI) significantly strengthens its market position in south India with the addition of 89 screens (76 operational screens plus 13 upcoming). Consequently, contribution of south India to PVR's screen portfolio will increase to 35 percent from 26 percent. Buy. L & T (Rs. 1358.00) (Code : 500510) (F. V. : 2.00) : Brokerages have retained positive view on construction and engineering firm Larsen & Toubro which on Thursday approved a share buyback worth up to Rs 9,000 crore, with analysts saying that the buyback will boost the company’s return on equity. The company will buy back 6 crore shares at a price of up to Rs 1,500 per share, which is at over 13% premium to the stock’s closing price of Rs 1,322.15 per share. The buyback may lower EPS by 2%, but it will improve quality of earnings. Motilal OswalNSE 1.42 % said the company’s earnings growth in the current financial year would be impacted by 500 basis points at the consolidated level, assuming completion of the buyback, given the loss in other income on account of utilisation of Rs 9,000-crore of cash. The return on equity is set to touch 18% by FY 2021.About Rs 200000 crore of orders are expected to come up for bidding in the next couple of quarters. L&T is expected to register consolidated EPS of Rs 58.7 in FY 2019. Buy. ICICI Lombard (Rs. 918.00) (Code : 540716) (F. V. : 10.00) : The long-term motor third-party (TP) policy on the insurance sector is a major boost for the insurance companies like ICICI Lombard. It is a significant positive development in terms of increasing persistency, which will help the company in reducing loss ratios and increase float income. Float income is expected to be ROE accretive. Howeverl, the full impact will be visible only from next year (FY20E). Revised commission rates for long-term 2W own damage (OD) part — 22.5% (1st year), 13% (2nd & 3rd year) and 6.5% (5th year). It’s nil on motor TP portion.. Revised commission rates for long-term Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 47 private cars (PC) OD part — 19.5% (1st year), 13% (2nd year) and 6.5% (3rd year). It’s nil on motor TP portion. Any benefit on the back of lower commissions will be part of product design.Majority of the sales in 2W happens in 75-150cc capacity where rates have been revised by 4.6x. In PC, it happens in 1,000-1,500cc where rates have been revised by 3.3x. Claims inflation has been in- built in pricing. So, the income and profit will jump. Buy. Aurobindo Pharma (Rs. 799.00) (Code : 524804) (F. V. : 1.00) :- Aurobindo Pharma’s revenue in 1QFY19 came in at Rs 4.6bn, up 16.7%YoY and 5%QoQ. This was aided by good double-digit growth in the formulations segment, with US and Europe/RoW growing at 11.5% and 31% YoY respectively. Gross margin dropped to 55% due to one-off inventory provisions and shelf stock adjustment. EBITDA stood at Rs 7.8bn (down 7%YoY) and margin was at 18.4% (down 477bps YoY/152bps QoQ). Net profit at Rs 4.6bn was also down 12.1%YoY impacted by forex loss of Rs 682mn. Despite unfavourable business environment in the US when peers have seen precipitous fall in their revenues and profitability over last two years, ARBP’s portfolio has been resilient and maintained the growth momentum. With near term opportunities like Toprol XL, Prevacid ODT, and Welchol, and several injectable products, it will grow at 15% CAGR over FY18-20E.The stock has gained almost 30 per cent within two and half months. There seems strong momentum. Buy.

(SEBI Registered Research Analyst) * Disclosure :- The author has not brought / sold any stock advised in this news paper during last one month • All stocks rates / indices on 14th Sep., 2018 unless specified o Stoploos is useful for Short - Medium term investors only * Disclaimer :- • Smart Investment will not be responsible / for any loss arising out of investment based on its recommendation. • Though, every care has been taken, we will not responsible for any errors / omissions o All disputes are subject to Ahmedabad jurisdictioner

BUY.... BUY....BUY TIPS OF THE WEEK Co. Name Code Price Co. Name Code Price Dwarikesh S. 532610 24.65 Acrysil Ltd. 524091 608.00 FACT 590024 47.00 Tata Chem. 500770 747.00 RCF 524230 74.00 UPL 512070 734.00 Kanoria Ch. 506525 71.00 Voltas 500575 614.00 Crest Ven. 511413 198.00 Sun Pharma 524715 665.00 Granules (I) 532482 118.00 Piramal Ent. 500302 3041.00 Chambal Fer. 500085 162.00 IEX 540750 1716.00 Apollo Tyres 500877 241.00 Godfrey Ph. 500163 991.00 Ashok Ley. 500477 131.00 Aurobindo PH. 524804 799.00 JSW STeel 500228 407.00 Sanofi (I) 500674 6569.00 Ambuja Cem. 500425 229.00 Sadhana N. 506642 1238.00 Infibeam Av. 539807 234.00 LUPIN 500257 966.00 JSPL 532286 233.00 PVR 532689 1379.00 Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 48 Dalal Street Whispers - Dilip K. Shah

Jain Irrigation (Rs. 85.00) (Code: 500219) :- This company has agreed to acquire ET Water Systems, a US-based farm technology firm. The acquisition will expand Jain Irrigation's water management technology product offerings. It will also enable Jain Irrigation to strengthen its position in the US smart agriculture market. NBCC (Rs. 68.00) (Code: 534309) :- The Supreme Court has appointed NBCC to develop stalled projects of Amrapali Group. NBCC has orders worth over Rs. 40,000 crores on its books. MCX (Rs. 800.00) (Code: 534091) :- In a bid to deepen commodity derivatives market, SEBI is mulling to approve a proposal to allow trading in this segment by foreign entities with exposure to Indian physical commodity market. This development is expected to have a positive impact on MCX. Dhampur Sugar (Rs. 117.00) (Code: 500119) :- The union cabinet has approved 25% hike in ethanol prices earlier this week. This has added shine to the shares of Dhampur Sugar and other sugar companies for whom ethanol is a by-product. HCL Techno (Rs. 1,070.00) (Code: 532281) :- The share is in uptrend for the past month. There is likelihood of the company bagging a major deal. Its income is likely to rise owing to its high market share in digital projects. The weakness in rupee will help its profitability and enable it lessen the pressure of pay hike. PowerGrid (Rs. 199.00) (Code: 532898) :- The share jumped 7% in this week. Ex- perts believe there is little downside in this stock. It has a healthy order-book position, and strong capex pipeline. It is likely to achieve 19% growth in this year. Salzer Ele. (Rs. 175.00) (Code: 517059) :- The company makes switchgears, wires, cables and provides electrical solutions in energy management business. Promoters have increased their stake from 34% to 36%, and are likely to increase it to 40% in 2-3 quarters. Alembiz Pharma (Rs. 647.00) (Code: 533573) :- The company's board has approved a Rs. 300 crore NCD issue. It will issue the debentures on private placement basis. The stock is likely to be in limelight. RCF (Rs. 74.00) (Code: 524230) :- The stock rose 18% on the back of strong trading volumes during the week. The fertilizer company is seen benefiting from the central government's new procurement policy, wherein it will subsidise farmers if crop rates goes lower than the MSP. Vedanta (Rs. 235.00) (Code: 500295) :- The stock is on the rise on the back of reports that it has discovered natural gas in KG Basin. Vedanta owns 100% stake in A3-2 block in the basin. India Glycols (Rs. 524.00) (Code: 500201) :- Crude oil prices have been on the rise from some time. The government has hiked ethanol prices by 25%, and also intends to raise ethanol blending in petrol. This company is set to be the biggest beneficiary of such a move. Redington (Rs. 111.00) (Code: 532805) :- The company's board is slated to meet on September 17 to decide on share buyback. Redington is a distributor of Apple products. The launch of three new iPhones by Apple, which are set to be launched in India soon, will benefit this com- Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 49 pany. Relaxo Footwear (Rs. 860.00) (Code: 530517) :- This stock remained strong in a weak market last week. The counter is seeing 70% delivery-based trades. Tata Metaliks (Rs. 713.00) (Code: 513434) :- Some mutual funds are showing a lot of interest in the stock of this Tata Group company. Aggressive buying was seen in the stock recently. Apollo Tyres (Rs. 1,120.00) (Code: 508869) :- This leading tyre company has hiked prices by 4-5% due to increase in crude oil and raw material prices. MTNL (Rs. 15.00) (Code: 500108) :- This telecom PSU owns land in Mumbai and Delhi. It is expected to get approval from the Centre to develop this land. Alembic Ltd. (Rs.52.00) (Code: 506235) :- This Gujarat-based company has a large land bank. Reports suggest that it is planning to develop the surplus land.

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SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 50

Senior Astrologer Dharmesh Joshi Mob. : 9909941816 E-mail : [email protected] Sensex Predictions : Dt. 17th Sep. to 21st Sep.

Please consider 10 minutes plus and minus in each prediction, and act ac- cordingly. Ganesha advises you to compare every prediction with the prediction of the previous time slot. 17-09-2018 Monday :- • Combination of Moon and Saturn will slow down the process in the market. It may be called a boring day. • Opening in the coming two days, that is `17-09-2018 and 18-09-2018 will be positive, it can be said. • Market will open positive, will go down in some time. Stay careful till 12:30. • There will be sufficient strength in the market after 12:30. • So, you will gain if you do upside down jobbing in the second half. 18-09-2018 Tuesday :- • Sun will change sign and enter Virgo. • Mars and Ketu's movement will make the market aggressive on both the sides. • Move as per delivery and capacity, Ganesha emphasizes. • Only two trends are clear, for the rest of the time there is not much movement. • Short sell at the point where market opens, exit after making Rs 5 profit. • Buy Nifty around 12:40 and sell it around 15:15. 19-09-2018 Wednesday :- • Mercury will be in it's exalted sign, which may increase volume in Bank Nifty. • Between 9:15 and 11:11, trade in Nifty's mixed pattern. • From 11:11 to 12:20 Nifty will be negative. • Between 12:20 and 13:26 Nifty will be positive. • From 13:26 to 14:38 Nifty will be mixed. • Between 14:38 and 15:30 the larger view for Nifty is positive. 20-09-2018 Thursday :- Market will be closed today on account of Moharram. 21-09-2018 Friday :- • Very fast and aggressive scene. • Ganesha sees a very confusing scene. • From 9:15 to 10:40, Nifty will be from mixed to negative. • Between 10:40 and 11:11 Nifty will see a technical bounce. • From 11:11 to 12:15, Nifty will be negative. • Between 12:15 and 13:30, Nifty will be positive. • From 13:30 to 14:30 , Nifty will be mixed and there won't be much change. (0.03) • In the last one hour, "A" group stocks will witness buying, which will have a positive impact on Nifty. Financial Weekly

SMART 16th Sep. 2018 to 22nd Sep. 2018 INVESTMENT 51 REVIEW OF “SMART PLUS NEWS LETTER” Amazing 23% RETURN SMART GAIN FOR SMART INVESTORS Company Reccom. Weekly Ch. Company Reccom. Weekly Ch. 10-9-2018 High (%) 10-9-2018 High (%) TNPL 311 323 3.86 RPG Life 340 356 4.71 Heidlberg Cement 165 175 6.06 NMDC 119 124 4.2 Take Solution 194 203 4.64 Tata Motors 277 282 1.81 Lumax Ind. 2035 2100 3.19 Axis Bank 645 676 4.81 Graphite India 990 1025 3.54 Wockhardt 670 687 2.54 CYIENT 792 821 3.66 KPIT Techno 308 314 1.95 Motherson Sumi 303 309 1.98 Alembic Pharma 638 657 2.98 CEAT 1399 1415 1.14 Vimta Labs. 313 335 7.03 Voltap Trans. 912 924 1.32 Hindalco 242 248 2.48 Guj. flouro 861 893 3.72 Vedanta 230 236 2.61 LUPIN 959 986 2.82 Deepak Fert. 242 252 4.13 Kjaria Cera. 447 457 2.24 JSPL 219 238 8.68 Amar Raja Batt. 816 835 2.33 EROS Intl. 110 114 3.64 ICICI Lombard 873 922 5.61 Greaves Cotton 156 161 3.21 Sasken Techno 970 1019 5.05 Indian Tonners 191 209 9.42 Hawkins 3333 3399 1.98 Manpasand Bev. 141 148 4.96 Apollo Hospital 1159 1176 1.47 Shreyans Ind. 191 202 5.76 Wendt 3659 3840 4.95 Hathway Cable 23 27 17.39 Mahindra CIE 288 301 4.51 Akar Auto 50 52 4 TVS Motors 589 598 1.53 Praj Ind. 91 112 23.08 Suven Life 309 337 9.06 Sail 76 81 6.58 JSW Steel 405 415 2.47 Vascon Engg. 29 30 3.45 West Cost Paper 388 399 2.84 BGR Energy 76 78 2.63 Sonata Soft 367 395 7.63 Meghmani Organics 85 89 4.71 GIC Housing 322 326 1.24 Reliance Power 36 37 2.78 Petronet LNG 242 246 1.65 Raj TV 35 36 2.86

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