January 2018

ACMIIL MARKET PULSE- JANUARY 2018 1

 Dear Investors,

MARKET PULSE, the monthly report from ACMIIL, aims to provide

insightful perspectives on all aspects of the market, the Fundamental,
Technical, and Derivatives. The report contents

Market Update:
• Domestic & Global Update

Equity Report:
• Kajaria Ceramic Ltd

Technical Report:
• Nifty View
• Bank Nifty View
• Britannia - Technical buy

Derivatives Report:
• Rollover Report

Equity SIP Update

Retail Research Call Performance

Event Calendar

MARKET PULSE aims to capture the market in all its hues and colors
and provides a range of information that helps in making wise investment
decisions.

Regards,
Research Team
ACMIIL

ACMIIL MARKET PULSE- JANUARY 2018 2

 January 2018

Contents
Overall Outlook 4

Equity Report 8

Technical View 15

Derivatives Report 18

Equity SIP Performance 20

Retail Research Call 22

Performance Report

Event Calendar 25

ACMIIL MARKET PULSE- JANUARY 2018 3

 OVERALL OUTLOOK
Domestic Market Update
Indian markets saw a bull run in the last month of the year giving a strong closing to 2017 with 28% returns on Sensex
and 29% returns on Nifty for the calendar year. The whole year was eventful and growth was driven by liquidity,
government reforms, positive global cues, state elections results, reviving earnings growth digesting demonetisation
and GST impact. In December, the markets marked gains crossing an all time high 34,000.
During the bi-monthly monetary policy review, the RBI kept the rates unchanged with a neutral stance, giving a firm
support to banking stocks. The government announced incentive plans worth Rs 8450 crore to boost exports and
employment in labour-intensive sectors under the Make in India initiative, which will aid manufacturing sector growth
in the long run. BJP won the state assembly election of Gujarat and Himachal Pradesh as anticipated. In the winter
session, major bills were passed such as the Companies (Amendment) Bill, 2017 and The Insolvency and Bankruptcy
Code (Amendment) Bill, 2017.
WPI stood at 3.93% for the month of November 2017v/s 3.59% in October. CPI surged to 4.88% in November v/s
3.58% in previous month. The core CPI inflation increased to 4.69% in November v/s 4.4% in October. IIP was at 2.2%
in October. India’s merchandise exports surged 30.5% to $26.2 billion in November while imports increased 19.6% to
$40.02 billion. The trade deficit rose 3.2% YoY to $13.83 billion in November 2017. Service exports improved 7.9% YoY
to $14.15 billion in October whereas services imports galloped 13.3% to $8.70 billion. India’s services trade surplus rose
0.3% to $5.45 billion in October. Fiscal deficit hit 112% of the budget estimate for 2017-2018 and was Rs 6.12 lakh crore
during April-November highest ever. The Nikkei India Manufacturing Purchasing Managers’ Index had risen to 52.6 in
November from 50.3 in October. Government’s revenue receipt for April- November was at Rs 8.04 lakh crore, 53.1%
of the budget estimate of Rs 15.15 lakh crore for the entire year. Total government expenditure was Rs 14.78 lakh crore
at November-end, 68.9% of the budget estimate.
Moving in to 2018, year is expected to as exciting as previous year with focus on macroeconomic data, affirmative
global market trends, more inflows from FIIs and DIIs, domestic infrastructure development and government reforms,
the currency movement and crude oil price movement .The SEBI’s decision to allow exchanges to provide equity and
commodity trading by the end of year, relaxing entry norms for foreign portfolio investors and government’s borrowing
programme and upcoming union budget 2018-19 on February 1 will be in focus.

Global Market Overview

Global markets surged well in 2017 with splendid economic and corporate growth. China’s Shanghai Composite index
surged 6.6% during the year while Hong Kong’s Hang Seng raised 36%, highest across the globe.Japan’s Nikkei index
jumped 19% for the year, highest level in 26 yearswith an overwhelming victory of Prime Minister Shinzo Abe’s ruling
Liberal Democratic Party in October’s general election. In October IMF raised its 2017 global growth forecast to 3.5%
boosting global growth confidence. Overall global markets gained 22% with $9tn in value.
During December growth in China’s manufacturing sector slowed slightly to 6.9% as a punishing crackdown on air
pollution and a cooling property market start to weigh on the world’s second-largest economy. Service sector expanded
at a faster pace in November with The Caixin China services purchasing managers’ index rose to 51.9 in November
from 51.2 in October.Exports in November rose 12.3% YoY, the fastest pace in eight months, led by strong sales of
electronics and high-tech goods, while commodity purchases helped lift imports which grew 17.7% YoY.China’s central
bank raised interest rates on reverse repos 5 basis points for the 14-day tenor, following upward adjustments on other
tenors.
Japan’s GDP grew at an annualized pace of 2.5% growing at a faster pace than initially estimated in the July-September
quarter. Growth predictions were revised for the current and next fiscal years, forecasting the economy to expand 1.9%
and 1.8% respectively on the back of steady improvement in domestic demand.
UK services PMI was reported at 53.8 in November compared with 55 in October. Eurozone final November composite
PMI was reported at 57.5 compared with 56 in October.
US Federal Reserve raised interest rates by a quarter point, increasing bank rate to 1.25% -1.5%. The Fed also raised
its GDP forecast from 2.1% to 2.5%. FED has targeted 3 more rate hikes in 2018. Its inflation forecast was raised from
1.6% to 1.7%. In USA historic tax bill was passed which includes a reduction in the corporate tax rate from 35% to 21%.
European Central Bank kept the interest rates unchanged buthiked its growth forecasts.
US oil prices closed above USD $60 a barrel on the last day of the year, highest since mid-2015. During the year, it
gained 12% with strong demand and declining global inventories. Brent crude ended the year with a 17% rise, supported
by ongoing supply cuts by top producers OPEC and Russia as well as strong demand from China.

ACMIIL MARKET PULSE- JANUARY 2018 4

 OVERALL OUTLOOK

Global Indices Performance

Index 30-Nov-17 29-Dec-17 Change MoM
Dow Jones 24272 24719 1.8%
S&P 500 2648 2674 1.0%
Nasdaq 6874 6903 0.4%
CAC 40 5373 5313 -1.1%
DAX 13024 12918 -0.8%
FTSE 100 7327 7688 4.9%
Nikkei 225 22725 22765 0.2%
Hang Seng 29177 29919 2.5%
Shanghai 3317 3307 -0.3%
Nifty 50 10227 10531 3.0%
BSE Sensex 33149 34057 2.7%
Brent Crude ($) 63.57 66.6 4.8%
WTI Crude ($) 57.38 60.3 5.1%
Sources: Netdaina/BSE

ACMIIL MARKET PULSE- JANUARY 2018 5

 OVERALL OUTLOOK
Stocks For Long Term Investment

M&M
Mahindra & Mahindra is an Indian multinational car manufacturer. It is the India’s largest tractor brand by volume &
no 1 utility vehicle manufacturers. With gradual improvement in economy, we believe, it has a wider product portfolio
& distribution network which will not only aids in improving volume growth in coming quarters but also would aids in
improving market share. With improving rural economy & higher MSP for crop prices, we believe, M&M to be a best
proxy play for riding domestic rural theme. Also, with improving tractor volume & increasing market share, operating
margin to improve further. Further, M&M is the largest domestic player in the EV segment with about 4000 electric
vehicle plying on domestic road. Company has invested Rs 500 crore in the EV business, and plans to pump in another
Rs 600 crore in the next two to three years. Recently, company has tied up with cab aggregator Uber to introduce
electric vehicles on a large scale adoption. Hence we are positive on the stock.

L&T
Larsen & Toubro is a major technology, engineering, construction, manufacturing and financial services conglomerate,
with global operations. Company addresses critical needs in key sectors - Hydrocarbon, Infrastructure, Power, Process
Industries and Defence - for customers in over 30 countries around the world. We believe, company to gradual revival
in domestic economy. The engineering & construction major is expected to see a robust order book growth in coming
quarters led by increasing government thrust on infrastructure sector, defence, railway, power & housing sector. Further,
company would also reap benefits of pick up in private capex cycle as some green shoots of recovery are visible. Also,
improvement in crude oil prices to benefit company’s global order book scenario as it has a strong presence in West
Asia. Moreover, company’s efforts on exiting non-core business to aid in better working capital cycle & this will led to
improvement in operational efficiencies. Hence we are positive on the stock.

HDFC bank
HDFC bank is one of the leading banking & financial service company of India. As on Sept 30th 2017, company has
4729 branches & 12259 ATMs across 2669 cities/ town. Of the total branches, 52% are in semi urban & rural areas.
HDFC bank has a large retail deposit franchise which aids in a stable source of funding. Bank also has a well balanced
loan mix between corporate & retail segments. With bank board approving fund raising aggregating of Rs 24000cr,
we believe, this will provide a next leg of growth in coming years. Further, bank has delivered a superior & consistent
earnings growth of 20% for last many years with a stable asset quality & expect to continue in coming years. We believe
company’s loan book to grow at a CAGR of 15-20% in coming quarters. Hence we are positive on the stock.

NMDC Ltd
Incorporated in 1958, NMDC is India’s single largest iron ore producer, presently producing 46mn tonnes of iron ore
from 3 fully mechanized mines. Reducing iron ore inventories in China, improving Chinese demand for long steel
products coupled with rising international steel prices, and increasing demand for high grade ore in order to meet
Chinese pollution norms have all led to higher global iron ore prices. We believe, this will augur well for companies like
NMDC in coming quarters. Also, with increasing government thrust on infrastructure sector, we believe, India’s steel
demand to improve in coming years & hence it will benefit NMDC going ahead. Further, with its key customers like JSW
Steel & RINL are ramping up their production capacity, we believe this aid in improving volume growth in coming years.
Company’s 3mn tonnes steel plant is likely to commission in coming quarters Moreover; company is a good dividend
payer due to strong cash position. Hence we are positive on the stock.

ACMIIL MARKET PULSE- JANUARY 2018 6

 OVERALL OUTLOOK
Zee Entertainment
Zee Entertainment is a worldwide media company offering entertainment content to its diverse viewers. Over the years,
company grew from an Indian television broadcaster into a global content company, and expanded our footprint from
South Asia to almost the whole world. TV advertisement will remain relevant as a means for reaching mass audience
and brand building. With GST & demonetization impact fading out, we believe, company to benefit from revival in
consumption sector. With reduction in GST rates for many consumer products company along with improving consumer
sentiment & new product launches, we expect, advertisement spending is set to rise in coming quarters. Further,
company’s subscription revenue to remains strong in coming quarters led by digitisation impact in phase III & IV regions.
Moreover, Zee is in the process of refreshing its digital offering (Over the Top services). Its new digital platform, Z5
(expected to be launched in Q4FY18), will offer a large collection of movies, exclusive digital content (original + third
party) for kids and youth, plus existing TV content. We believe all this augur for the company in coming quarters. Hence
we are positive on the stock.

ACMIIL MARKET PULSE- JANUARY 2018 7

 EQUITY REPORT
Investment Idea Kajaria Ceramics Ltd.
Company Background
ACCUMULATE Incorporated in 1985, Kajaria Ceramic Ltd (Kajaria) is a New Delhi based
manufacturer of ceramic and vitrified tiles in India. The company’s product
basket comprises more than 2,600 varieties of ceramic and vitrified tiles, easily
Key Data
the largest portfolio within India’s ceramic tiles sector.
DATE 04/01/2018
Reco Price 715 Kajaria is headed by the visionary entrepreneur Mr. Ashok Kajaria. The company
Target 872 enjoys leadership position in the market with market share of 22% in organized
tile industry and 10% in the local tile industry including the unorganised players.
Building
Sector
Material
The company’s tile manufacturing facilities possess the capacity to produce
BSE Code 500233
68.90MSM (million square meters) of ceramic and vitrified tiles. Further, Kajaria
NSE Code KAJARIACER adopts a JV model to increase its pan-India presence and has JV with 5
EPS (March 2017) 15.97/- companies.
Face Value (Rs.) 1
Market Cap (Rs Cr) 11551 Plant - Production Summary (MSM Per Annum)
52-week High/Low (Rs) 787/480 Polished Glazed Vit-
Ceramic Wall
Source: BSE Unit Name Vitrified rified Tiles Total
&Floor Tiles
Shareholding pattern % tiles (PVT) (GVT)
(as on Sep 2017) Sikandarabad (UP) 8.40 8.40
Promoters 47.58 Gailpur (Rajasthan) 18.90 7.70 26.60
Public 52.42 Malootana (Rajasthan) 6.50 6.50
Total 100.00 JV - Jaxx (Morbi, Gujarat) 10.20 10.20
Source: ACE equity
JV - Cosa (Morbi, Gujarat) 5.70 5.70
JV - Taurus (Morbi, Gujarat) 5.00 5.00
Stock Performance
JV - Soriso (Morbi, Gujarat) 3.60 3.60
180
160
JV - Vennar (Vijaywada, AP) 2.90 2.90
140
120
100
Total 25.4 27.4 16.1 68.90
80
60
Source : Company, ACMIIL research
40
20
0
Jan-17 Apr-17 Jul-17 Oct-17

Outlook and valuation

Sensex Kajaria Ceramic

Source: ACE equity Kajaria is India’s leading manufacturer of ceramic and vitrified tiles. With
Rebase to 100
incremental capacity addition, market leadership position, along with strong
brand recall and wider distribution network, we believe Kajaria remains a superior
bet on the growing consumption economy. Moreover, we believe favourable
government policies and initiatives such as GST implementation, anti-dumping
duty, RERA legislation, and increasing thrust on the housing sector will benefit
Kajaria ceramic in the coming years. At reco price of Rs 715/-, the company’s
stock trades at 27.1x its FY20E EPS of Rs 26.4/-. Hence, we recommend
ACCUMULATE rating for a target price of Rs 872/-, which implies 22% upside
from recommended level.

Analyst

Dhiral Shah
E: dhiral.shah@acm.co.in
D: +91 22 2858 3211

ACMIIL MARKET PULSE- JANUARY 2018 8

 EQUITY REPORT
Financial Snapshot
Particluar ( Rs mn) FY15 FY16 FY17 FY18E FY19E FY20E
Net Sales 24,164 27,006 28,545 29,551 34,082 39,199
EBITDA 3,541 4,574 4,963 5,231 6,308 7,584
EBITDA Margin 14.7% 16.9% 17.4% 17.7% 18.5% 19.3%
PAT 1,906 2,359 2,539 2,634 3,350 4,194
PAT Margin 7.9% 8.7% 8.9% 8.9% 9.8% 10.7%
EPS (Rs) 11.0 14.8 16.0 16.6 21.1 26.4
D:E 0.38 0.34 0.23 0.23 0.19 0.14
P/E 36.4 32.1 36.6 43.2 33.9 27.1
ROE (%) 22.0% 22.5% 20.3% 18.2% 19.9% 20.9%
ROCE (%) 29.0% 29.7% 27.9% 24.5% 26.9% 28.7%
Source : Company, ACMIIL research

Investment Rationale
Government initiatives to act as a key catalyst for the tiles sector
Over FY10-16, the local tiles industry has grown at a CAGR of 8-9% largely led by increasing construction activity and
rise in urbanisation. However, events such as demonetization and destocking related to GST have impacted growth
during FY17 and H1FY18 due to slow down in real estate market and falling economic activity. However, we believe the
local tiles industry is expected to grow in double digits over the next few years with robust initiatives and policies taken
by the government for reviving the local economy and boosting the consumption sector. The increasing thrust of the
government on housing, infrastructure, and sanitation would act as a key catalyst for the home decor industry.

Moreover, the government’s emphasis on housing through investment inducing policies, falling interest rates, along with
upward mobility aspiration of the Indian youth and increasing nuclearisation is expected to boost demand for housing
demand, going forward. Further, the number of ambitious programmes by the centre such as Smart Cities Mission,
Affordable Housing, Swachh Bharat Abhiyaan (Sanitation for All by 2019), Atal Mission for Rejuvenation and Urban
Transformation (AMRUT), RERA legislation, and Housing for All by 2022 are expected to provide significant impetus to
the demand for tiles in the coming years.

Multi regional capacity addition to drive future growth

Kajaria has been constantly adding capacities across multi locations. Over the last three decades, Kajaria Ceramics
has increased its capacity from 1MSM in 1988 to an industry leader in the local market with 68.37MSM capacity as
on FY17. The company has been adopting the joint venture model to create capacity. This has resulted in a pan-India
manufacturing presence. Kajaria acquires a majority stake in unbranded regional players, which provides it with access
to the output from such facilities. Currently, the company has JV with 5 companies with equity holding more than 50%.
We believe this strengthens the company’s sectoral competitiveness as revenue accretion starts immediately, making
it possible to distribute products faster across India. Further, in the last few years, the industry has largely shifting to
value-added products. Thus, revenue contribution from PVT and GVT cumulatively has increased from 49% in FY11
to 58% in FY17. Recently, the company has increased its stake in Kajaria Floera Ceramic from 51% to 70%, which is
putting up a manufacturing facility of a high margin product i.e. glazed vitrified tiles (GVT) with a capacity of 5MSM in
AP. This plant is expected to commission by Sept 2018. Moreover, Kajaria Sanitaryware is in the process of increasing
the capacity of high value ceramic tiles at its Rajasthan location from 5.40 lac pcs p.a. to 7.20 pcs p.a. The same will
be completed by December 2017.

Further, the company has planned its expansions well in sync with the expected demand revival in the real estate sector
with the government’s focus on affordable housing; company has a target of reaching 100MSM capacity by 2020. The
company will undertake such aggressive expansion via Greenfield, brownfield, and inorganic initiatives over the next
few years to scale up its multi-region manufacturing capability. We believe the company will continue to add capacities
for high margin and value-added products through own and JV routes, which will drive volume growth and improve
margin in the coming years.

ACMIIL MARKET PULSE- JANUARY 2018 9

 EQUITY REPORT
Tile Capacity Growth
80
70
60
50 39.7 43.5
40 28.2
20.7
30 16.8

20
24.2 25.9 25.9 28.9 25.4
10
0
FY13 FY14 FY15 FY16 FY17
Ceramic Tiles Vitrified Tiles

Source : Company, ACMIIL research

In last five years, the company has increased its value-added capacity (both PVT and GVT) by 27% CAGR whereas
ceramic capacity has grown at a mere 1% CAGR. Going ahead, the company would continue focus to on increasing
value-added capacity for improving product mix and operational margin.

Tile Sales growth (msm p.a.)

80
70
60
50 33.04 35.6
28.85
40 23.38
19.54
30
20
28.63 29.82 31.30 32.14
10 26.09

0
FY13 FY14 FY15 FY16 FY17
Ceramic Tiles Vitrified Tiles
Source : Company, ACMIIL research

In the last five years, the company’s sales product mix has also improved. Vitrified tiles volume has grown at a CAGR
of 16.2% whereas ceramic tiles has volume has grown at a CAGR of 5.4%. We believe rising disposable income has
increased preference for value-added products. Hence, the revenue mix would improve further in the coming years.

Presence across the value chain

Kajaria Ceramic has a leadership presence in the second most populous country of the world. The company has, over the
years, developed a comprehensive range of products including ceramic wall & floor, vitrified (soluble salt & double charge)
and high-end designer tiles (ceramic digital and digital glazed vitrified tiles). The Company offers more than 2,300 SKUs
in different sizes & thus offers the widest product range at every price point (Rs 200 per sqm to Rs 1800 per sqm). Having
established itself as a dominant player in the tile segment, Kajaria moved up the value-chain. Realising the immense
potential of sanitary ware and faucets, especially in the mid segment and absence of large organised players in that
segment, the company decided to enter into a sanitary ware segment. Thus, emerge as a holistic bathroom solution provider

ACMIIL MARKET PULSE- JANUARY 2018 10

 EQUITY REPORT
with the launch of faucets and sanitaryware products. Kajaria launched its sanitaryware and faucets verticals through its
wholly-owned subsidiary Kajaria Bathware Pvt Ltd & it has a 1 million pieces faucet manufacturing facility at Gailpur.
The Company has created a large product basket comprising 12 ranges and 100+ SKUs. Going forward, the Company
plans to strengthen its faucets offering by introducing three new ranges (incl. two premium ranges) and launching sensor
faucets for various applications. In the sanitaryware segment, the Company is looking to increase its manufacturing
capacity by about 1.20 lac pcs per annum through a brownfield expansion to cater to growing demand and emerging
opportunities.

Strong brand recall & wider distribution network

Kajaria has been focusing on building its brand image over the past 8-10 years & thus it has increased its marketing
spending annually. Tile and sanitaryware companies like Kajaria are focusing on outsourcing, resulting into asset light
model approach & thus helping them to reap benefits of branding and distribution The Company has also appointed
Akshay Kumar as brand ambassador, which is likely to enhance visibility and boost sales in coming quarters. Moreover,
Brand ‘Kajaria’ today is an aspiration – creating a consumer pull for the Company’s products. The Company’s far-
reaching branding and advertisement initiatives at the national level have significantly widened the brand appeal among
a larger section of the Indian populous and holds the potential of increasing footfalls at its dealer outlets. Further,
company has created an entrenched network of dealers. It has a strong and widespread dealership network of 1,200
as on H1FY18 up from 750 in 2012. This dealer caters to around 5000 associate dealers across the country. Of this
channel, a large proportion of the dealers are resident in semi-urban and rural markets, basically tier II & III cities. We
believe there are still many untapped potential markets where company can extend its distribution reach through strong
brand recall.

Advertisement and Sales promotion (Rs Mns)

900 3.0%
2.8%
800
799 2.5%
700 2.2%
600 2.1% 2.0%
500 1.6% 569
533 1.5%
400 1.5%
300 1.0%
321
200 266
0.5%
100
0 0.0%
FY13 FY14 FY15 FY16 FY17
Adver sment & Sales Promo on (Rs Mns) % of sales

Source : Company, ACMIIL research

Above chart indicates, increasing brand spend as a % of sales in last five years which led to improve sales growth &
better brand visibility.

GST Implementation & anti dumping duty to benefit domestic tile industry
India is ranked no 3 in world ceramic tile production & consumer (after China and Brazil) and is growing annually at 8-9%
with rising urbanisation and replacement of natural stone. However, majority of India’s ceramic producers hail from
Morbi (Gujarat), accounting for ~60% of the total production from the regional sector. We believe, GST implementation
would also act as a key catalyst for the sector as it would lay down a level playing field for the organised players as
the pricing differential between organised & unorganised tiles would shrink. Several companies such as Kajaria are
expected to benefit from GST over the long term. Under excise regime, tax rate on the home décor particularly tile
sector was taxed at 27-28% across categories. With GST in place & GST Council reducing tax rate to 18% from earlier
28%, we believe this is likely to result in market share shift to large organised players given increasing premiumization
of product & sector consolidation. India’s increased disposable incomes have increased the preferences for branded
products, as a result, a number of unorganized players are likely to partner national tile players like Kajaria, resulting into
capacity consolidation & promising prospect for organized players. Further, the government has imposed anti-dumping

ACMIIL MARKET PULSE- JANUARY 2018 11

 EQUITY REPORT
duty ranging from $0.28 - $1.87 per sq mtr on Chinese vitrified tiles for next 5 years (valid up to 2022), we believe this
will protect domestic tile industry in a long run. We believe, this would aid company to increasing its market share in
coming years.

Strong financial performance & improving margins

In last five years i.e. FY13-FY17, company’s sales & profitability has grown at a CAGR of 19% & 33% respectively.
Further, during the same period, company has registered a volume CAGR of 11.25%. Currently, Kajaria has Joint
venture with five different companies for creating a Pan India presence for production & distribution network. With this,
revenue share from JVs has increased from 0% in FY10 to 33% in FY17. We believe, this asset light business model
has improved the overall operating efficiency and consequently helped company to achieve higher asset turnover.
Further, favourable product mix & falling raw material prices particularly gas prices has led to improvement in operating
margin from 14.1% in FY13 to 17.45% in FY17.
Also, company has created unmatched distribution network and enjoys highest brand recall in tile industry, thus enable
company to enjoy pricing power in the industry. Moreover, Kajaria has institutionalised the cash-and-carry sales model
for its dealers & this has enhanced the company to generate robust liquidity & control working capital cycle. With strong
operating cashflow, company has not only added incremental capacity using internal accrual & asset light model but
also has improved leverage ratio from 0.68x in FY13 to 0.27 as on Q2FY18. Also, company delivers a strong return
ratio owing to low leverage ratio & improving margins with ROE & ROCE stands at 20.3% & 27.9% as on FY17. Further,
going ahead, company would benefit from its leadership position and strong cash flow generation resulting in sustained
investment in branding and capacity expansion. We believe company to post 11% & 18% CAGR growth in revenue
& profit respectively over FY17-FY20E. Also, we expect margins to improve from current 17.4% in FY17 to 19.3% by
FY20E led by superior product mix, strong brand recall & high pricing power.

Gross Sales Net Profit

45,000 25.0% 4,500 4,194 45.0%
39,199
40,000 4,000 41.1% 40.0%
34,082 20.0% 3,350
35,000 19.5% 3,500 34.4% 35.0%
28,545 29,551
30,000 27,006 3,000 2,634 30.0%
24,164 15.3% 15.0% 15.0% 2,539 27.2%
25,000 2,359
2,500 25.2% 25.0%
20,000 11.8% 2,000 1,755 20.0%
10.0%
15,000 1,500 15.0%
10,000 5.7% 5.0% 1,000 10.0%
3.5% 7.6%
5,000 500 5.0%
3.7%
- 0.0% - 0.0%
FY15 FY16 FY17 FY18E FY19E FY20E
FY15 FY16 FY17 FY18E FY19E FY20E
Gross Sales (Rs Mns) % Growth
Net Profit (Rs Mns) % Growth

EBITDA Leverage Ratio

8,000 7,584 24.0%
7,000
6,308 19.3% 0.38
6,000 16.9% 17.4% 17.7% 18.0%
18.5% 0.34
4,963 5,231
5,000 14.7% 4,574
4,000 12.0% 0.23 0.23
3,541
0.19
3,000
0.14
2,000 6.0%
1,000
- 0.0%
FY15 FY16 FY17 FY18E FY19E FY20E
FY15 FY16 FY17 FY18E FY19E FY20E
EBITDA (Rs Mns) % margin Leverage Ra o

Source : Company, ACMIIL research

Risks and concerns

1. Any slowdown in real estate sector to impact business operation
2. Any increasing competition to impact operational performance
3. Any substantial rise in raw material prices to impact company’s margin.

ACMIIL MARKET PULSE- JANUARY 2018 12

 EQUITY REPORT
Views and Valuation
We expect Kajaria to post 18% earnings CAGR over FY17-FY20E led by incremental capacity addition, asset light
business model, deepening market penetration, strong cash flow generation, and favourable government policies.
Hence, we believe this will benefit Kajaria in the coming years. At the recommended price of Rs 715/-, the company’s
stock trades at 27.1x its FY20E EPS of Rs 26.4/-. Thus, based on 33.5x FY20E EPS, we arrive at a target price of Rs
872/-, which implies 22% upside from the recommended level. Hence, we recommend to “ACCUMULATE” the stock.

Financial Highlights
Income Statement
Particluar (Rs mns) FY15 FY16 FY17 FY18E FY19E FY20E
Net Sales 24,164 27,006 28,545 29,551 34,082 39,199
YoY Growth 19.5% 11.8% 5.7% 3.5% 15.3% 15.0%
EBITDA 3,541 4,574 4,963 5,231 6,308 7,584
EBITDA Margin 14.7% 16.9% 17.4% 17.7% 18.5% 19.3%
Depreciation 559 726 814 901 970 1040
EBIT 2,982 3,848 4,149 4,330 5,338 6,544
Interest 294 345 340 369 350 315
Add: Other Income 72 104 154 148 239 314
PBT 2,760 3,607 3,963 4,109 5,226 6,542
Tax 854 1248 1424 1475 1876 2349
Tax Rate 30.9% 34.6% 35.9% 35.9% 35.9% 35.9%
PAT 1,906 2,359 2,539 2,634 3,350 4,194
PAT Margin 7.9% 8.7% 8.9% 8.9% 9.8% 10.7%
EPS (Rs) 11.0 14.8 16.0 16.6 21.1 26.4
Source : Company, ACMIIL research

Balance Sheet
Particluar (Rs mns) FY15 FY16 FY17 FY18E FY19E FY20E
Share Capital 159 159 159 159 159 159
Reserves & Surplus 8,226 10,321 12,352 14,276 16,672 19,911
Networth 8,385 10,480 12,511 14,435 16,831 20,070
Long term debt 1,885 2,466 2,364 3,207 3,046 2,742
Short term debt 1,339 1,105 551 606 576 518
Total Debt 3,224 3,571 2,915 3,813 3,622 3,260
Current Liabilities & provi- 4,063 5,131 4,975 5,069 6,536 7,049
sions
Total Liablilities 15,672 19,182 20,401 23,317 26,989 30,379
Net Block 9,325 11,178 11,751 13,001 14,001 15,001
Other non current assets 498 401 414 425 474 529
Cash & Cash Equivalent 112 216 519 1,915 3,359 4,372
Inventories 3,033 3,842 3,720 3,865 4,413 5,024
Debtors 2,152 2,741 3,389 3,481 4,015 4,618
Short term loans & advances 47 99 30 31 36 41
Other current assets 505 705 578 598 690 794
Total Assets 15,672 19,182 20,401 23,317 26,989 30,379
Source : Company, ACMIIL research

ACMIIL MARKET PULSE- JANUARY 2018 13

 EQUITY REPORT
Cash Flow Statement
Particular (Rs Mns) FY15 FY16 FY17 FY18E FY19E FY20E
PBT 2,702 3,607 3,963 4,109 5,226 6,542
Tax paid 854 1,248 1,424 1,475 1,876 2,349
Dep & amortization 559 726 814 901 970 1,040
Working capital changes 426 816 1,040 109 -258 867
Net Cash flow from Operation 1,981 2,269 2,313 3,426 4,578 4,367

Cash from investments

Capital expenditure 4,724 2,579 1,387 2,151 1,970 2,040
Sale/purchase of investments -37 -22 -36 7 30 33
Changes in Others -300 -75 49 4 20 22
Net cash from Investment 4,387 2,482 1,400 2,162 2,019 2,095

Cash from financing

Issue of shares & sh. pre- 1,360 -264 -508 -710 -954 -954
mium
Debt change 1,118 581 -102 843 -160 -305
Other changes - - - - - -
Net cash from financing 2,478 317 -610 132 -1,114 -1,259
Source : Company, ACMIIL research

Ratio Analysis
Particular FY15 FY16 FY17 FY18E FY19E FY20E
Proftibalilty ratio
ROE 22.0% 22.5% 20.3% 18.2% 19.9% 20.9%
ROCE 29.0% 29.7% 27.9% 24.5% 26.9% 28.7%
RoA 12.2% 12.3% 12.4% 11.3% 12.4% 13.8%

Valuation ratio
P/E 36.4 32.1 36.6 43.2 33.9 27.1
P/BV 7.6 7.2 7.4 7.9 6.8 5.7
EV/ EBITDA 18.9 17.3 19.2 22.1 18.1 14.8
EV/ Sales 2.8 2.9 3.3 3.9 3.3 2.9

Per Share
EPS (Rs) 11.0 14.8 16.0 16.6 21.1 26.4
Book Value ( Rs) 53 66 79 91 106 126

Capital Structure
Long term D:E 0.38 0.34 0.23 0.23 0.19 0.14
Current Ratio 1.1 1.2 1.5 1.7 1.8 2.0
Qucik ratio 1.0 1.1 1.2 1.4 1.4 1.3

Turnover ratio
Fixed asset turnover (x) 2.6 2.4 2.4 2.3 2.4 2.6
Debtors Days 33 37 43 43 43 43
Inventory Days 54 63 58 58 58 58
Payable Days 45 48 45 45 45 45
Source : Company, ACMIIL research

ACMIIL MARKET PULSE- JANUARY 2018 14

 TECHNICAL VIEW
NIFTY

Chart as on 2nd January 2018

NIFTY- Weekly Chart

Last month, the index registered a new lifetime high of 10550 and continued its upward journey. the index on the weekly
chart bounced from its 21 WEMA, which is acting as strong support. Moreover, the index holds the lower trendline
support of rising wedge pattern. As per this pattern, as long as the index holds 10100 upwards momentum is likely to
continue. The upper trendline resistance of the rising wedge pattern is placed around 10650-10700 levels. RSI is on
verge of forming negative divergence. Thus, the index will find strong resistance in the band of 10650-10700. On the
lower side, 10300 will act as strong support followed by 10100.

ACMIIL MARKET PULSE- JANUARY 2018 15

 TECHNICAL VIEW
BANK NIFTY

Chart as on 2nd January 2018

BANK NIFTY - Weekly Chart

Last month, the index has seen consolidation in the band of 24700 to 26000 band. The index on weekly chart bounced
from its 21 WEMA, which is acting as strong support. On the higher side, previous high of 25954 will act as the first
hurdle followed by trendline resistance, which is placed close to 26500. RSI is on the verge of forming a negative
divergence. Thus, the index will find strong resistance in the band of 26000-26500. On the lower side, 24700 will act as
strong support followed by 23800.

ACMIIL MARKET PULSE- JANUARY 2018 16

 TECHNICAL VIEW
Stock to watch- BRITANNIA

Chart as on 1st January 2018

BRITANNIA - Weekly Chart

1. Stock is up-trending on all time frames.

2. Stock has given trendline breakout on daily chart.
3. Stock is respecting 50EMA in medium term and 13 EMA on short-term basis, which acts as good support.
4. Stock is trading above all major EMA, which is positive for the stock.
5. RSI has taken support and now trading in positive zone.
6. Based on above setup, one can buy BRITANNIA in the range of 4600-4620 with a stop loss of 4470 on closing basis
for a target of 4980-5000.

ACMIIL MARKET PULSE- JANUARY 2018 17

 DERIVATIVE REPORT
JANUARY SERIES VIEW ROLLOVER ANALYSIS
As mentioned in our last month Rollover Analysis Index took strong
support around 10000 & closed at 10478 in Dec series. On the expiry
day, market wide rollovers stand at 86% compared with the average
rollovers of 85% in the last three series. Nifty futures rollover stands
at 73%, which is higher than the average rollover of 69% of the last
three series. Nifty will start the Jan series with an OI of 2.28 Cr shares
compared with OI of 1.78 Cr shares at the beginning of the Dec
series. Going into Jan, key event to watch out would include Q3FY18
earnings releases. On the downside support for the index is around
10000 whereas resistance stands at 10500-10600. Next month we
expect the volatility to increase on back of Union Budget which is
likely on 01-Feb hence recommended to hedge to your short term

28-Sep

30-Nov
26- Oct

28-Dec
positions by using Futures & Options.

DERIVATIVES INDICATORS
India VIX closed lower at 12.29 vs. 13.55 of the previous month
indicating low volatility. Another leading derivative indicator, the Nifty
PCR, opened on a higher note this month at 1.54 against last month’s
1.32.

BANKNIFTY
The index saw higher rolls of 75% compared with the 3M average
of 63%. Banknifty will start the January series with an OI of 1.29 Mn
shares compared with OI of 1.50 Mn shares at the beginning of the
December series. As per options data support for the index is around
24800 and 25000 whereas resistance stands at 25800 and 26000 for

28-Dec
the short term.

OPTION ANALYSIS
From the OI Concentration (January Series), maximum addition
of open interest on the call options front exists at the strike prices
of 10500 and 10600 (with nearly 36.91 lacs and 38.22 lacs shares 60

outstanding). This indicates that these levels would act as the 48

Open Interest in Lakh

50 47
41
resistance zone on the upside. On the Put options front, maximum 40 36 37 38
35
33
addition of open interest is at the strike prices of 10400 and
30
10300 (with nearly 46.96 lacs and 48.32 lacs shares outstanding
17
respectively), indicating a stronger support zone on the downside. 20

9 10 8
10 5
3
SECTOR / STOCK ROLLOVER ACTIVITY 0
10100 10200 10300 10400 10500 10600 10700
1. From the sectoral action, rollovers accelerated for Fertilisers,
CE PE
Textile, Infra, Banking, and FMCG stocks on expiry. However,
low rollovers were seen in Realty, Telecom, Media, Oil&Gas and
Capital Goods stocks.

2. Within the Nifty50 space, index heavyweights such as

POWERGRID, TATAPOWER, BANKBARODA, AXISBANK,
HDFC, COALINDIA, and ACC saw aggressive rollover in the
January series while low rolls were seen in GAIL, ICICIBANK,
BPCL, ONGC, HINDUNILVR, ZEEL, MARUTI and BOSCHLTD
compare with 3M average.

3. From the midcap space, UBL, BATAINDIA, MRPL, JUBLFOOD,

IRB, EQUITAS, INDIGO, TATACHEM, and UNIONBANK
saw high rollovers whereas RAMCOCEM, RCOM, M&MFIN,
MCDOWELL-N, BAJAJFINSV, CUMMINSIND, ICICIPRULI,
REPCOHOME, SRTRANSFIN and WOCKPHARMA saw lower
rollover compare with 3M average.

ACMIIL MARKET PULSE- JANUARY 2018 18

 DERIVATIVE REPORT
Stocks to watch out based on Rollover Analysis:
POSITIVE
MRPL Strong rollover of 89% vs 79% (3m Avg) indicates long positions carried forward
EQUITAS Strong rollover of 92% vs 83% (3m Avg) indicates long positions carried forward
IDFC Strong rollover of 94% vs 86% (3m Avg) indicates long positions carried forward.
RAMCOCEM Low Rollover of 53% vs 78% (3m Avg) indicates cut down in short positions.

NEGATIVE
GAIL Weak rollover of 57% vs 78% (3m Avg) indicates long unwinding.
ICICIBANK Weak rollover of 64% vs 80% (3m Avg) indicates long unwinding
BPCL Weak rollover of 62% vs 76 % (3m Avg) indicates long unwinding.
ZEEL Weak rollover of 75% vs 85 % (3m Avg) indicates long unwinding

ACMIIL MARKET PULSE- JANUARY 2018 19

 EQUITY SIP
STOCKS

Aggressive Portfolio Moderate Portfolio
Sr. Basket Sr. Basket
Scrip Name Sector Scrip Name Sector
No. Qty No. Qty
1 Tata Motors Ltd Automobile 2.00 1 HDFC Bank Banking 1.00
2 ICICI Bank Banking 3.00 2 M&M Financial Services Ltd NBFC 2.00
3 LIC Housing Finance Ltd NBFC 2.00 3 VEDL Diversified 5.00
4 VEDL Diversified 4.00 4 Ambuja Cement Ltd Cement 3.00
5 State Bank of India Banking 3.00 5 ITC Ltd FMCG 2.00
6 ONGC Ltd Oil & Gas 3.00 6 Infosys Ltd IT services 1.00
7 Grasim Industries Ltd Diversified 2.00 7 Zee Entertainment Ent. Ltd Media 2.00
8 Adani Ports Port & Logistics 3.00 8 Hindalco Inds. Ltd Metals & Mining 3.00
9 BHEL Capital Goods 4.00 9 Reliance Inds. Ltd Oil & Gas 1.00
10 Tata Steel Ltd Metals & Mining 2.00 10 Biocon Ltd Pharmaceuticals 2.00
Sun Pharmaceuticals
11 Pharmaceuticals 1.00 11 Bharti Airtel Ltd Telecom 2.00
Inds. Ltd

Defensive Portfolio Mid Cap Portfolio

Sr. Basket Sr. Basket
Scrip Name Sector Scrip Name Sector
No. Qty No. Qty
1 Glenmark Pharma Pharmaceuticals 1.00 1 Motherson Sumi Systems Ltd Auto Ancillar- 3.00
2 HDFC Bank Banking 1.00 2 Kalpataru Power Power Trans- 3.00
3 Cummins India Ltd Capital Goods 1.00 3 Va Tech Wabag Ltd Capital Goods 2.00
4 Dabur India Ltd FMCG 2.00 4 PFS NBFC 15.00
5 Tech Mahindra IT services 1.00 5 Gateway Distriparks Logistic 2.00
6 TCS Ltd IT services 1.00 6 Aia Engineering Ltd Capital Goods 1.00
7 Hind. Unilever FMCG 1.00 7 Apollo Tyre Auto Ancillar- 4.00
8 Coal India Mining 2.00 8 Camlin Fine Chemical 6.00
9 Lupin Ltd Pharmaceuticals 1.00 9 JK Cement Ltd Cement 1.00
10 Pidilite Ind Specialty 1.00 10 DHFL NBFC 4.00
11 Majesco Ltd IT 2.00

ACMIIL MARKET PULSE- JANUARY 2018 20

 EQUITY SIP
PERFORMANCE

Equity Sip Returns

Year Aggressive Moderate Defensive Midcap

Returns Since Inception CAGR

16.09% 17.38% 14.57% 18.94%
(Last 5 years)
Benchmark Index CAGR (Last 5 26.08% (Nifty Cnx
15.40% (Nifty50) 15.40% (Nifty50) 15.40% (Nifty 50)
years) Midcap)
Last One Year Return ( 1-Jan-2017
9.88% 22.16% 7.87% 19.46%
to 29-Dec-2017)
10.82% 10.82% 10.82% 19.59%
Benchmark Index
(Nifty50) (Nifty50) (Nifty50) (Nifty Cnx Midcap)

ACMIIL MARKET PULSE- JANUARY 2018 21

 RETAIL RESEARCH
CALL PERFORMANCE
MT Medium Risk Calls
Calls Performance Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Calls Activated 11 15 23 29 36 34 25 27 38 21 19 10
Successful 4 10 14 16 27 21 14 19 27 14 13 8
Unsuccessful 7 5 9 13 9 13 11 8 11 7 6 2
Succes Rate 36% 67% 61% 55% 75% 62% 56% 70% 71% 67% 68% 80%

MT High Risk Calls

Calls Performance Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Calls Activated 15 7 12 17 34 23 10 21 7 4 6 6
Successful 13 7 7 13 24 16 7 15 3 2 3 3
Unsuccessful 2 0 5 4 10 7 3 6 4 2 3 3
Succes Rate 87% 100% 58% 76% 71% 70% 70% 71% 43% 50% 50% 50%

Positional Calls Technical Trade

Calls Performance Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Calls Activated 9 10 6 8 12 18 20 27 57 64 61 40
Successful 7 8 4 8 7 12 17 18 41 48 49 35
Unsuccessful 2 2 2 0 5 5 3 9 16 16 12 5
Succes Rate 78% 80% 67% 100% 58% 67% 85% 67% 72% 75% 80% 88%

Smart Delivery
Calls Performance Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Calls Activated 12 7 12 16 20 14 23 26 22 10 16 21
Successful 9 5 9 12 13 11 23 13 15 10 10 14
Unsuccessful 3 2 3 4 7 3 0 13 7 0 6 7
Succes Rate 75% 71% 75% 75% 65% 79% 100% 50% 68% 100% 63% 67%

Momentum Call
Calls Performance Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Calls Activated 21 23 29 38 50 35 33 27 25 14 33 19
Successful 17 14 23 24 30 28 24 14 17 13 24 14
Unsuccessful 4 9 6 14 20 7 9 13 8 1 9 5
Succes Rate 81% 61% 79% 63% 60% 80% 73% 52% 68% 93% 73% 74%

Quick Pick Intraday

Calls Performance Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Calls Activated - - - - 34 27 - 1 15 9 - 1
Successful - - - - 16 16 - 0 9 6 - 0
Unsuccessful - - - - 18 11 - 1 6 3 - 1
Succes Rate - - - - 47% 59% - 0% 60% 67% - 0%

Techno Funda
Calls Performance Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Calls Activated 1 - - - - - 1 - - 2 1 2
Successful 1 - - - - - 1 - - 2 1 2
Unsuccessful 0 - - - - - 0 - - 0 0 0
Succes Rate 100% - - - - - 100% - - 100% 100% 100%

ACMIIL MARKET PULSE- JANUARY 2018 22

 RETAIL RESEARCH
CALL PERFORMANCE
Investment Idea
Close Profit / Loss Gain / Closed
Date Company Rec Rec Price Target Remarks
Rate per Share Loss % Date
28 Jun 16 FIEMIND Accu 840.00 1230 1230.00 Target Achieved 390.00 46.43% 6 Oct 16
5 Jul 16 BAJAJCORP Accu 395 468.50 510.00 Part profit of Rs.73.50/- 73.50 19% 30 Aug 17
2 Aug 16 GPPL Buy 167-172 198-200 Open
4 Aug 16 WONDERLA Accu 395-405 475.00 Open
11 Aug 16 CAMLINFINE Accu 86.50 130 130.00 Profit of Rs.43.50/- 43.50 50.29% 22 Dec 17
18 Aug 16 GRANULES Accu 133.5 126.50 178.00 Exit -7.00 -5.24% 2 Sep 16
31 Aug 16 VA TECH WABAG Accu 560.00 725 725.00 Target Achieved 165.00 29.46% 27 Mar 16
1 Sep 16 SKIPPER LIM- Accu 160.50 210 210.00 Target Achieved 49.50 30.84% 16 May 17
3 Oct 16 IFB Industries Accu 430.00 596 575.00 Profit of Rs.166/- 166.00 38.60% 3 Feb 17
14 Oct 16 ASIANTILES Accu 280.00 345 345.00 Target Achieved 65.00 23.21% 20 Mar 17
14 Oct 16 DEEPIND Accu 245.00 325.5 330.00 Profit of Rs.80.5/- 80.50 32.86% 3 Feb 17
17 Oct 16 DCBBANK Accu 125.00 160 160.00 Target Achieved 35.00 28.00% 9 Mar 17
17 Oct 16 ORIENTREF Accu 114.00 145 145.00 Target Achieved 31.00 27.19% 4 May 17
17 Oct 16 GANECOS Accu 212.00 280 276.00 Profit of Rs.68/- 68.00 32.08% 3 May 17
4 Nov 16 NBCC Accu 155.00 210 210.00 Profit of Rs.55/- 55.00 35.48% 28 Jul 17
6 Dec 16 PRECAM Accu 148-153 174.00 Open
8 Dec 16 INFRATEL Accu 380.00 478 468.00 Target Achieved 98.00 25.79% 17 Oct 17
30 Dec 16 GODREJPROP Accu 305.00 375 375.00 Target Achieved 70.00 22.95% 2 Feb 17
4 Jan 17 DEEPAKNTR Accu 99.50 158 158.00 Target Achieved 58.50 58.79% 12 Jun 17
20 Feb 17 SUBROS Accu 202.50 234 234.00 Target Achieved 31.50 15.56% 11 Apr 17
20 Feb 17 RECLTD Accu 140.50 220 220.00 Target Achieved 79.50 56.58% 9 May 17
24 Mar 17 VRLLOG Accu 300.50 417.5 420.00 Profit of Rs.117/- 117.00 38.94% 1 Dec 17
24 Mar 17 FIEMIND Accu 850.00 1042.5 1023.00 Profit of Rs 192.50/- 192.50 22.65% 5 Apr 17
5 Apr 17 RATNAMANI Accu 785.00 930 920.00 Profit of Rs.145/- 145.00 18.47% 29 Aug 17
6 Apr 17 ZEEMEDIA Accu 39-41 60.00 Open
12 Apr 17 DABUR Accu 289.50 354 360.00 Profit of Rs.64.5/- 64.50 22.28% 1 Nov 17
20 Apr 17 KPRMILL Accu 700.00 840 840.00 Profit of Rs.140/- 140.00 20.00% 7 Jun 17
22 May 17 GREAVESCOT Accu 153-158 190.00 Open
1 Jun 17 ESSELPACK Accu 260 311.00 340.00 Part profit of Rs.51/- 51.00 20% 17 Nov 17
15 Jun 17 KEI Accu 214.50 262 262.00 Profit of Rs.47.5/- 47.50 22.14% 30 Aug 17
17 Jul 17 MAYURUNIQ Accu 370.00 447.5 450.00 Target Achieved 77.50 20.95% 27 Oct 17
27 Jul 17 RAMCOCEM Accu 657.50 825 820.00 Target Achieved 167.50 25.48% 21 Dec 17
17 Aug 17 FINPIPE Accu 605.00 750 750.00 Profit of Rs.145/- 145.00 23.97% 19 Oct 17
1 Sep 17 SHK Accu 255 307.50 320.00 Part profit of Rs.52.5/- 52.50 21% 29 Dec 17
19 Sep 17 SKIPPER Accu 215.00 258 258.00 Target Achieved 43.00 20.00% 1 Nov 17
20 Sep 17 CAMLINFINE Accu 75.00 90 90.00 Profit of Rs.15.00/- 15.00 20.00% 11 Oct 17
3 Oct 17 GNA Accu 315.00 392 384.00 Profit of Rs.77/- 77.00 24.44% 9 Oct 17
5 Oct 17 NOCIL Accu 145.00 179 180.00 Profit of Rs.34/- 34.00 23.45% 17 Oct 17
6 Oct 17 CENTURYPLY Accu 256.00 323 320.00 Target Achieved 67.00 26.17% 28 Nov 17
9 Oct 17 RECLTD Accu 152.5 183.50 210.00 Part Profit of Rs.31/- 31.00 20% 3 Nov 17
9 Oct 17 EIHOTEL Accu 135-140 183.00 Open
10 Oct 17 BOROSIL Accu 880-910 1078.00 Open
10 Oct 17 NRBBEARING Accu 125.50 158 155.00 Profit of Rs.32.5/- 32.50 25.90% 28 Nov 17
12 Oct 17 CYIENT Accu 520-530 629.00 Open
7 Nov 17 HATSUN Accu 740.00 892.5 900.00 Profit of Rs.152.5/- 152.50 20.61% 13 Nov 17
4 Dec 17 SANGHIIND Accu 118.50 143.5 145.00 Profit of Rs.25/- 25.00 21.10% 28 Dec 17
5 Dec 17 ALLCARGO Accu 177.5 215.00 230.00 Part Profit of Rs.37.5/- 37.50 21% 27 Dec 17
21 Dec 17 KAJARIACER Accu 710-720 872.00 Open
29 Dec 17 GNA Accu 430-440 539.00 Open
29 Dec 17 ZENSARTECH Accu 880-890 1084.00 Open

ACMIIL MARKET PULSE- JANUARY 2018 23

 RETAIL RESEARCH
CALL PERFORMANCE
Call Tracker
Positional Call Top 5 Gainer
Date Company Rec Rec Price Stop Loss Call Closed At Target P/L per Share Gain / Loss % Closed Date
15-Dec PFC Buy 117 112 125 125-128 8 6.84% 19-Dec
5-Dec TATAPOWER Buy 88.25 84 93.75 96-98 5.5 6.23% 8-Dec
15-Dec RECLTD Buy 145.5 138 154.25 160 8.75 6.01% 19-Dec
7-Dec WIPRO Buy 292.25 276 309.75 335 17.5 5.99% 29-Dec
6-Dec UPL Buy 692.5 668 730.5 740-750 38 5.49% 8-Dec
Positional Call Top 2 Loser
15-Dec INFIBEAM Buy 165 156 148 180 -17 -10.30% 29-Dec
29-Nov TEXRAIL Buy 120 110 110 140 -10 -8.33% 13-Dec

Smart Delivery Top 5 Gainer

Date Company Rec Rec Price Stop Loss Call Closed At Target P/L per Share Gain / Loss % Closed
Date
1-Dec PARAGMILK Buy 241 228 251.875 260-265 10.875 4.51% 8-Dec
13-Dec DHFL Buy 586.5 570 608 615 21.5 3.67% 18-Dec
5-Dec BATAINDIA Buy 715 697 740.5 750 25.5 3.57% 6-Dec
8-Dec JKPAPER Buy 118.5 114 122.25 126 3.75 3.16% 8-Dec
26-Dec SUNPHARMA Buy 539.5 525 556.5 565-570 17 3.15% 27-Dec
Smart Delivery Top 2 Loser
13-Dec MCLEODRUSS Buy 206 200 195 216 -11 -5.34% 18-Dec
24-Nov HEIDELBERG Buy 160 154 153 170-172 -7 -4.38% 12-Dec

Master Trade High Risk (Futures Calls) Top 5 Gainer

Rec Stop Call P / L per Gain / Loss Closed
Date Company Rec Target Lot
Price Loss Closed At Lot per Lot Date
7-Dec AMBUJACEM DEC FUT Buy 261.5 257 265.5 268-270 4 10000.00 2500 7-Dec
5-Dec NIFTY DEC FUT Buy 10100 10000 10214 10300 114 8550 75 7-Dec
30-Nov NIFTY DEC FUT Sell 10322 10422 10225 10122 97 7275 75 1-Dec
15-Dec M&M DEC FUT Buy 1466 1447 1480 1500-1505 14 7000.00 500 15-Dec
21-Dec HDFCBANK DEC FUT Sell 1876 1905 1864.5 1830-1820 11.5 5750 500 26-Dec
Master Trade High Risk (Futures Calls) Top 2 Loser
1-Dec HINDUNILVR DEC FUT Buy 1267.5 1248 1248 1290-1300 -19.50 -11700 600 04-Dec
6-Dec BANKNIFTY DEC FUT Buy 25115 24910 24910 25500 -205.00 -8200 40 06-Dec

Master Trade Medium Risk (Option Calls) Top 5 Gainer

Rec Stop Call P / L per Gain / Loss Closed
Date Company Rec Target Lot
Price Loss Closed At Lot per Lot Date
4-Dec DLF DEC 220 PE Buy 2.45 0.9 3.15 4-5.0 0.7 3500 5000 12-Dec
30-Nov NIFTY DEC 10100 PE Buy 60 95 120 35 2625 75 1-Dec

7-Dec COALINDIA DEC 270 CE Buy 3.65 4.95 7-8.0 1.3 2210 1700 11-Dec
15-Dec HEROMOTOCO DEC 3500 Buy 52 18 62 100-110 10 2000 200 18-Dec
CE
5-Dec NIFTY DEC 10300 CE Buy 62 87 120 25 1875 75 7-Dec
Master Trade Medium Risk (Option Calls) Top 2 Loser
22-Dec NIFTY DEC 10500 PE Buy 56 28 28 120 -28.00 -2100 75 26-Dec
28-Dec NIFTY DEC 10500 PE Buy 19.5 8 40-45 -11.50 -862.5 75 28-Dec

ACMIIL MARKET PULSE- JANUARY 2018 24

 EVENT CALENDAR
January 2018
Sun
Monday Tuesday Wednesday Thursday Friday Saturday
day
1 2 3 4 5 6
• Indian Automobile Sales • Nikkei Manufacturing G.M.Breweries Ltd. US Unemployment Rate Goa Carbon Ltd
Data PMI Dec Dec

• Nikkei Services PMI

Dec

7 8 9 10 11 12 13
• Unichem Laboratories • Shalby Ltd • Hindustan Media • 3I Infotech Ltd.
Ltd. • South Indian Bank Ltd. Ventures Ltd. • HT Media Ltd.
• Indusind Bank Ltd. • Infosys Ltd.
• Tata Consultancy • Karnataka Bank Ltd.
Services Ltd.
• Industrial Production
YoY NOV and
Manufacturing
• ECB Monetary Policy Production YoY NOV,
Meeting Accounts Inflation Rate YoY DEC

14 15 16 17 18 19 20
• WPI Inflation YoY DEC • ICICI Lombard General • TATA Sponge Iron Ltd. • Hdfc Bank Ltd • Gruh Finance Ltd.
And WPI Manufacturing Insurance Company Ltd • Hdfc Standard Life
YoY DEC Insurance Company Ltd
• Kansai Nerolac Paints
Ltd.
• Kotak Mahindra Bank
LtD.

21 22 23 24 25 26 27
• AXIS BANK LTD. • WABCO INDIA LTD. • Biocon Ltd. • Persistent Systems Ltd.
• Container Corporation
Of India Ltd.
• Everest Industries Ltd.
• Kirloskar Brothers
Ltd.-$
• Mahindra & Mahindra
Financial Services Ltd.
• Mphasis Ltd.

28 29 30 31
• Housing Development • EIH Ltd. • Mahindra Holidays &
Finance Corp.Ltd. • Mahindra Lifespace Resorts India Ltd.
• Novartis India Ltd. Developers Ltd. • Tci Express Ltd
• Rane Brake Lining Ltd. • Timex Group India Ltd.

Result Updates Economic Event

ACMIIL MARKET PULSE- JANUARY 2018 25

 January 2018

Asit C. Mehta Investment Interrmediates Limited, Research Analyst

Equity & Derivative

Akhil Rathi 022 2858 3210
Hrishikesh Yedve 022 2858 3207
Vrinda Aditya 022 2858 3209
Neeraj Sharma 022 2858 3208
Rohan Gawale 022 2858 3213
Dhiral Shah 022 2858 3211

Retail Research Desk:
+91 22 2858 3210
retailresearch@acm.co.in
Information pertaining to Asit C. Mehta Investment Interrmediates Limited (ACMIIL):
ACMIIL is a SEBI registered Stock Broker, Merchant Banker and Depository Participant. It is also a AMFI registered Mu-
tual Fund Distributor. It does not have any disciplinary history. Its associate/group companies are Asit C. Mehta Com-
modity Services Limited, Asit C. Mehta Realty Services Pvt. Ltd, Asit C. Mehta Forex Pvt. Ltd, Nucleus IT Enabled Ser-
vices , Asit C. Mehta Financial Services Limited (all providing services other than stock broking and merchant banking).

Research Analyst Registration
Number: INH000002483
CIN: U65990MH1993PLC075388
Disclosures
ACMIIL/its associates and its Research analysts have no financial interest in the companies covered on the report. AC-
MIIL/its associates and Research analysts did not have actual/beneficial ownership of one per cent or more in the com-
panies being covered at the end of month immediately preceding the date of publication of the research report. ACMIIL/
its associates or Research analysts have no material conflict of interest, have not received any compensation/benefits
for any reason (including investment banking/merchant banking or brokerage services) from either the companies con-
cerned/third parties with respect to the companies covered in the past 12 months. ACMIIL/its associates and research
analysts have neither managed or co-managed any public offering of securities of the companies covered nor engaged
in market making activity for the companies being covered. Further, the companies covered neither are/nor were a client
during the 12 months preceding the date of the research report. Further, the Research analyst/s covering the companies
covered herein have not served as an officer/director or employee of the companies being covered
Disclaimer:

This report is based on information that we consider reliable, but we do not represent that it is accurate or complete and
it should not be relied upon such. ACMIIL or any of its affiliates or employees shall not be in any way responsible for any
loss or damage that may arise to any person from any inadvertent error in the information contained in the report. To
Follow us on: enhance transparency we have incorporated a Disclosure of Interest Statement in this document. This should however
not be treated as endorsement of the views expressed in the report

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