Vol.

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Index

Market View 1
KNOW ABOUT Q4 NUMBERS
Company Update 2
January-March quarter earnings were very much vital as it is the immediate quarter
post demonetization process. It helps us to know how Indian corporate have performed in the
Around the
immediate quarter post the demonetization. During October-December quarter (3rd Quarter),
Economy 3 some sectors felt the pinch of demonetization which was expected by the market. However,
the market was keenly waiting for the outcome of January-March quarter which gives confi-
Knowledge Corner 3 dence to the market for ongoing improvement in corporate earnings.

Mutual Fund 4 Auto and Auto Ancillary Sector

After a temporary road block in Q3 FY17 due to demonetization, domestic demand for
Commodity Corner 5 automobiles recovered and posted a decent growth in Q4 FY17 across the entire segment ex-
cept the three wheeler segment. Passenger vehicles demand recovered sharply on back of
Forex Corner 6 demand for utility vehicles and SIAM (Industry Body) expects the demand recovery to continue
with high single digit growth between 7-9 growth during 2017-18.
Report Card 7
FMCG Sector
Short Term Call Status 8
In Q3 FY17 most of the FMCG companies took a hit due to the demonetization as the
flow of currency is critical for this segment. In Q4 FY17 we have seen the FMCG sector is
showing some signs of coming back to the track as the aggregate sales for the 33 companies
stood at Rs. 60,519/- crores for Q4 FY17 as against Rs. 56,398/- crore Q4 FY16, a growth of
7.3% on YoY basis.
Special Contributors
Metal and Mining Sector
Kunal Shah
Dhaval Ghodasara Total sales for the 12 stocks of metal and mining sector stood at Rs. 1,23,368/- crores in
Q4 FY17 as compared to Rs. 93,102/- crore in Q4 FY16, a growth of 32.5% on YoY basis. The
outstanding growth by this sector is due to the turnaround in many companies which delivered
profit from the losses a year ago. The price rise and higher volumes has benefited metals and
mining companies in fourth quarter.

Conclusion

For suggestions, feedback
and queries
jstreet@jhaveritrade.com
The Q3 FY17 was the most remarkable quarter as it reflected the impact of demoneti-
zation and it was more or less as per the market expectations. The real question is the analysis
of Q4 FY17 as it is crucial because it is immediate quarter after demonetization. The Q4 FY17
has been somewhat muted performance by Indian Corporate. Though during the Q4 FY17,
two sectors remained standouts were metal & mining and oil and gas sector. Now the market
eyes the first quarter FY17-18 which will decide the course of action of market in near future

Technically, strong resistance is at 9640-9710 range and support at 9550-9500.

Kamal Jhaveri
MD- Jhaveri Securities

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Company Update : MANAPPURAM FINANCE LTD

Company Basics Financial Basics Share Holding Pattern
BSE Code 531213 FV (`) 2.00 Holder's Name % Holding
EPS (`) (TTM) 7.64 Promoter 34.45
NSE Symbol Manappuram P/E (x) (TTM) 11.66 Public 65.55

EQUITY (` in Cr.) 84 P/BV (x) (TTM) 2.74

MKT.CAP (` in Cr.) 7497

Outlook and valuation : We recommend BUY on the stock BUY rating for the stock and value MGFL at
SoTP valuations, with gold business at 3.0x P/BV, micro-finance at 4.2x P/B FY18E. Subse-
quently, our target price stands at INR 130.

Company Overview :
Manappuram Finance Ltd (Formerly known as Manappuram General Finance and Leasing Ltd) is a non-banking
finance company. The company provides a range of services, including gold loans, vehicle finance, insurance, for-
eign exchange services, distribution of mutual funds and other financial products. The company currently operates
through more than 1000 branches spread across the country. During the year 1994-95, the company opened new
branches in Calicut, Guruvayur, Ernakulam and Thriprayar. In the year 2002, they started Forex business as a
part of its diversification.

Investment rationale for Manappuram Finance Ltd

Despite the impact of demonetization, Manappuram Finance (MGFL) recorded an all-round performance for Q3FY17 with PAT at
INR 2.036 bn (increased 101.5% on Y-o-Y basis and 52% on Q-o-Q basis) largely led by robust increase in Net interest in-
come (increased 53% on Y-o-Y basis and 6.8% on Q-o-Q basis) and controlled operating expenses (increased merely 9.6% on Y- o-
Y basis).

Product diversification strategy and rising gold loan volumes (gold holdings up 11% Y-o-Y; with large focus on-line gold loan product)
coupled with improved gold loan quality and greater thrust on collections emerging from rapidly improving microfinance segment
boosted the earnings for the quarter.

The share of new businesses (microfinance, mortgage and housing and commercial vehicle financing) increased to 15% in
Q3FY17 of overall AUMs.

Asset quality largely stable: With stressed legacy gold portfolio behind and MGFL focusing on shorter tenure products, laying
greater emphasis upon regular interest collections and tightened recognition norms, the asset quality stands as one of the best in
the industry.

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Around The World

Weekly Market Recap :
The rate of inflation, based on WPI stood at 2.17% for month of May 2017 over May 2016 as compared to 3.85% for the previous
month and -0.9% during the corresponding month of the previous year. The retail price inflation, as measured by the CPI slowed to
2.18% in May from 2.99% in April 2017 as food prices started falling from their year-ago level. On the economic front, merchandise ex-
ports have shown growth of 8.32% in dollar terms valued at $24014.62 million during May 2017 as compared to $22170.62 million during
May 2016.

The Federal Reserve hiked the fed-funds rate by a quarter-point to between 1% and 1.25%, as expected,China's central bank left interest
rates for open market operations unchanged. The rate for seven-day reverse repos remained at 2.45%, the 14-day tenor at 2.6% and the
28-day tenor at 2.75%. The Bank of Japan left policy unchanged on Friday, 16 June 2017, maintaining its aggressive monetary stimulus
aimed at lifting inflation.

Market Eye Week ahead :

Central Depository Services (India) is coming up with an initial public offering (IPO) of up to 3.51 crore shares. The company has fixed
price band of Rs 145 to Rs 149 per equity share. Eris Life sciences' IPO of up to 2.88 crore shares will close on Tuesday, 20 June 2017.
GTPL Hathway is coming up with an initial public offering comprising of fresh issue of aggregating up to Rs 300 crore and an offer for sale
of up to 1.8 crore shares. The price band of the IPO has been fixed at Rs 167 to Rs 170 per share.

the non-monetary policy meeting of the governing council of the European Central Bank (ECB) will be held in Frankfurt on Wednesday, 21
June 2017. The data on Nikkei Flash Japan Manufacturing Purchasing Managers' Index (PMI), IHS Markit Flash France Composite PMI,
IHS Markit Flash Germany Composite PMI, IHS Markit Flash Eurozone Composite PMI and IHS Markit Flash US Composite PMI, for June
will be announced on Friday, 23 June 2017.

Key Events / Factors to Watch

1. Mon : Dividend: Torrent Pharma
2. Tue : EGM: Sun Pharma
3. Wed : Dividdend: Havells, Supreme Ind, PC Jeweller
4. Thu: Dividends: HUL, UPL, Bank baroda
5. Fri : EGM: Sterlite techno

Knowledge Corner :
DEBENTURES

A type of debt instrument that is not secured by physical assets or collateral.

Why Debenture?

Debentures are backed only by the general creditworthiness and reputation of the issuer. A debenture is an un-
secured form of investment. They are a useful to raise money for short period of time.

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Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Scheme Name Reliance Midcap and Small Cap Fund
Sector Weights Fund (%)
Financial 18.15
AMC Reliance Nippon Life Asset Management Co Ltd
Energy 5.43
Type Open Ended & Equity Mid Cap Automobile 5.85
Healthcare 8.49
Category Open-ended
FMCG 8.54
Launch Date December 2006 Services 12.36
Technology 3.05
Fund Manager Sunil Singhania & Samir Rachh
Construction 11.59
Net Assets (` Engineering 5.25
Rs. 2947.3 cr as on May 31, 2017
In crore )
Chemicals 12.57
History 2014 2015 2016 2017 Risk Analysis
Volatility Measures
NAV (Rs) 37.17 45.07 51.19 62.63
Standard Deviation 17.31
Total Return (%) 103.13 21.24 13.58 22.35 Sharpe Ratio 1.00
Beta 1.06
Rank (Fund/Category) 4/50 2/36 1/34 19/24
R-Squared 0.66
Alpha 11.16
52 Week High (Rs) 37.17 45.07 56.10 -

52 Week Low (Rs) 17.49 36.80 36.69 -

Composition (%)
Equity 95.94
Net Assets (Rs.Cr) 1623.67 2233.01 4115.12 4966.78 Debt 4.33
Cash -0.27
Expense Ratio (%) 1.91 1.71 1.79 -

Fund Performance v/s Bse 200 Fund Style

Investment Style
Growth Blend Value
Large
Capitalization

Medium

Small

Fund
S&p bse Mid small cap
(Rebased to 10,000) Source : - www.valueresearchonline.com

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Commodity Corner

BULLION
FUNDAMENTAL: Bullion prices dropped as the dollar strengthened despite a market fraught with the type of political drama
that would ordinarily have offered a boost to precious metals. Pressure also seen after British elections failed to deliver a
clear majority for Prime Minister Theresa May, knocking the pound sharply lower and helping lift the dollar index to its high-
est since late May. Prices failed to capitalize on renewed geopolitical uncertainty, as the UK general election resulted in a
hung parliament, sparking uncertainty as to whether Brexit talks would be delayed. With the start of Brexit talks less than
two weeks away, investors fear that Theresa Mays faces a difficult start to Brexit negotiations in the wake of the general
election result, as her Conservative party lost the majority in parliament it held prior to the election.

RECOMMENDATION : SELL GOLD @ 29200 SL 29500 TGT 28850-28700 SELL SILVER @40000 SL 40850 TGT 39450-39100

BASE METALS
FUNDAMENTAL: On weekly basis, base metals ended with mixed node recovering from lows, where copper prices gained
by 2.75 percent helped by concerns over supply from Chile, recent data pointing to robust import demand in China and
falling stocks of the metal. Copper inventories in LME warehouses fell 9475 tonnes on Friday to 276,875 tonnes and are
down almost 20 percent from a seven-month high May. Copper mines in global major copper producing regions Chile and
Indonesia have suffered continuous strikes since the beginning of 2017, raising market concerns on copper supply. How-
ever, according to China Customs, imported copper concentrate supply is ample in Chinas market for now as the strikes
make limited impact on copper supply actually. Workers at Freeport-McMoRan Incs Grasberg copper mine in Indonesia an-
nounced to launch strike in May, following a 43-day strike at Chilean Escondida copper mine.

RECOMMENDATION : SELL ALUMINIUM @ 125 SL 127 TGT 122.5-120.5 BUY COPPER @ 370 SL 364 TGT 378-385 BUY ZINC @ 160 SL
156 TGT 164.5-166 BUY NICKEL @ 570 SL 558 TGT 585-595

ENERGY

FUNDAMENTAL Crude oil prices dropped by over 3% as pressure after investors braced for a rise in Libyan output while the
:

number of active U.S. drilling rigs rose. An unexpected rise in US crude stocks last week intensified concerns that the con-
tinuing production cuts by the OPEC and Russia arent effectively reducing the glut of oil that has suppressed oil prices for
over two years. The report showed a surprise rise of 3.3mbls in crude inventoriesthe first weekly rise in nine weeks, as
well as increases in gasoline and distillate stockpiles and weak demand for petroleum products. The Organization of the Pe-
troleum Exporting Countries and other big producers have agreed to pump almost 1.8 million barrels per day (bpd) less than
they supplied at the end of last year, and hold output there until the first quarter of 2018.

RECOMMENDATION : SELL CRUDE @ 3040 SL 3140 TGT 2940 BUY NAT.GAS @ 193 SL 188 TGT 198-206

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Commodity Corner
Forex Corner
Market Recap :

The Indian rupee on Monday strengthened mar-

ginally against the US dollar, tracking gains in the
Asian currencies markets. .

The 10-year bond yield was at 6.482% compared

to its previous close of 6.489%. Bond yields and
prices move in opposite directions.

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 97.182, up 0.02% from its previous
close of 97.164 .

Market Eye Week ahead :

The USDINR On daily chart pair below all short term, medium term, and long term moving average which is 20,
100 and 200.Whereas on weekly chart pair has continually taking support at 50WMA. Which suggest short term
trend is bearish. So for trading perspective, one could sell to the level 64.60-64.50 with SL of 64.85 for target of
64.27-64.02.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 64.02 64.27 64.55 64.80 65.08 64.84 64.31 64.51

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 71.74 71.94 72.25 72.45 72.76 72.56 72.05 72.14

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 81.19 81.81 82.32 82.94 83.45 82.82 81.69 82.44

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.34 57.66 58.28 58.60 59.22 58.89 57.95 57.99

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J Street Recommendations Report Card

NIFTY last week opened at 9646.70, attained a high at 9654.15 and fell to a low at 9560.08. Nifty finally closed the week at 9588.05 thereby
showed a fall of 100 point on week to week basis. Traders long and holding the same can revise the stop loss to 9547.Evening Doji Star can-
dlestick pattern has been formed which suggest that in near term correction is likely with volatility unless immediate rise and close
above 9710 is witnessed. Expect retracement of the rise from 9075 to 9709. Retracement levels are placed at 9467-9392-9318.Exit long
and sell on rise during the week to 9602-9641 with a stop loss of 9710.

Top Fundamental Stocks

Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
Manappuram Finance 30/05/2017 87 94 130 8% Buy

Godrej Properties 12/05/2017 508 551 630 3% Accumulate

Tvs Motor 24/04/2017 485 556 630 15% Buy

DCB Bank 17/04/2017 175 210 310 20% Buy

REC Ltd 27/03/2017 175 189 240 8% Accumulate

Petronet 20/02/2017 400 435 490 9% Buy

Escorts 06/02/2017 383 713 790 86% Profit Book

Edelweiss financial 16/01/2015 117 205 235 75% Profit Book

IOC Ltd 27/02/2017 376 407 490 8% Accumulate
Marico 20/02/2016 255 310 370 22% Buy

Voltamp transformer 13/02/2017 980 1282 1360 31% Buy

Mothersumi 03/04/2017 376 487 495 30% Accumulate

Lic hsg Finc 27/03/2017 608 776 830 28% Accumulate

Asian Paints 10/03/2017 1030 1149 1260 12% Buy

Nbcc india 20/03/2017 175 200 225 14% Buy

Alembic Pharmaceuti-
cals
30/08/2016 630 522 732 -17% Buy

Wonderla 25/04/2016 387 373 498 -4% Buy

Infinite Computer Sol. 20/07/2015 190 210 255 11% Buy

Sadbhav Engineering
Ltd.
04/05/2015 298 304 430 2% Buy

M&M 12/01/2015 1238 1394 1450 13% Profit Book

If you buy the things you dont need, soon you need to sell the things you need.

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J Street Short Term Call Status

Sr. BUY/ TRIGGER %
No.
DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
1 5-May-17 EXIDEIND BUY 235 240 237.50 251.00 228 TA 4.2

2 8-May-17 CADILAHC BUY 462 466 464.00 484.00 452 TA 4.2

3 9-May-17 INFY BUY 938 946 942.00 982.00 914 TA 4.2

4 10-May-17 GODREJIND BUY 562 572 567.00 594.00 546 TA 4.3

5 11-May-17 NIITECH BUY 523 532 527.50 554.00 507 TA 4.4

6 12-May-17 AMARAJABAT BUY 917 928 922.50 964.00 894 EXPIRE .

7 15-May-17 TVSMOTORS BUY 510 520 515.00 543.00 497 TA 4.3

8 16-May-17 GRASIM BUY 1166 1180 1173.00 1226.00 1134 SL -3.8

9 17-May-17 RAYMOND BUY 785 795 790.00 828.00 763 SL -3.6

10 18-May-17 PIDILITIND BUY 770 780 775.00 812.00 749 TA 4.2

11 19-May-17 WIPRO BUY 520 530 525.00 551.00 503 TA 4.4
12 22-May-17 MOTHERSUMI BUY 425 435 430.00 452.00 411 TA 4.1

13 23-May-17 ZEEL BUY 512 522 517.00 545.00 498 EXPIRE .

14 24-May-17 M&M BUY 1320 1335 1327.50 1387.00 1282 TA 4.2

15 25-May-17 MINDTREE BUY 508 514 511.00 536.00 492 TA 4.3
16 29-May-17 TATASTEEL BUY 507 514 510.50 535.00 491 EXPIRE .
HEROMO-
17 30-May-17 BUY 3650 3685 3667.50 3830.00 3544 TA 4.3
TOCO
18 31-May-17 GODREJIND BUY 608 614 611.00 638.00 589 TA 4.4

19 1-Jun-17 IBULHSGFIN BUY 1140 1160 1150.00 1205.00 1108 SL -3.8

20 2-Jun-17 M&M BUY 1420 1440 1430.00 1498.00 1378 EXPIRE .
21 5-Jun-17 ULTRACEMCO BUY 4200 4250 4225.00 4460.00 4070 SL -3.9

22 6-Jun-17 MINDTREE BUY 550 558 554.00 580.00 534 SL -3.8

23 7-Jun-17 KSCL BUY 644 653 648.50 678.00 624 TA 4.4

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J Street Short Term Call Status

BUY/ TRIGGER %
Sr. No. DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
24 8-Jun-17 HAVELLS BUY 502 512 507.00 534.00 488 OPEN .

25 9-Jun-17 SIEMENS BUY 1330 1344 1337.00 1396.00 1294 OPEN .

26 12-Jun-17 LICHSGFIN BUY 756 764 760.00 792.00 738 OPEN .

27 13-Jun-17 PEL BUY 3040 3080 3060.00 3200.00 2950 OPEN .

28 14-Jun-17 DHFL BUY 435 442 438.50 459.00 422 OPEN .

29 15-Jun-17 GODREJIND BUY 640 648 644.00 676.00 620 OPEN .

30 16-Jun-17 BAJFINANCE BUY 1395 1415 1405.00 1472.00 1358 OPEN .

STATUS CALLS RATIO

TA+PB 14 73.68

SL+EXIT 05 26.32

TOTAL 19 100.00

One call on daily basis is given keeping view of short term trading on closing basis.
Time frame and expected % of return is also mentioned with the suggested call.
This call are purely given on technical trading system generated by the Technical Research Desk.
Generally Expected Return on investment is 5-6 % with time horizon of 6-7 days.
Profit Booking update is considered if on an average expected return exceed 3.50-4.00 % against the
Expected return of 5-6%
Risk- Reward ratio percentage wise depends on the volatility of stock Normally it stands ( 3 : 9)

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