Defying odds: Spotting change in market leadershipvid.investmentguruindia.com/report/2020/May/I... · Defying odds: Spotting change in market leadership ... Price structure analysis

Research Analysts

Dharmesh Shah

[email protected]

Pabitro Mukherjee

[email protected]

Nitin Kunte, CMT

[email protected]

Vinayak Parmar

[email protected]

Ninad Tamhanekar, CMT

[email protected]

Defying odds: Spotting change in market leadership

May 2020

May 21, 2020

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As the wisdom goes in the market, there are always opportunities in every adversity which exhibit bull moves even in a rough environment. We believe in the current

uncertain scenario, when many stocks are at multi year lows and finding opportunities is challenging, as index corrections with magnitude exceeding 40% have

typically led foundation for change in sectoral leadership.

In this report, we try to spot such resilient companies based on our technical framework (and supported by reasonable business model with decent management

pedigree) that are being favoured by market in current environment and likely to generate above normal returns for investors in years to come. Our study reveals

that Pharma, Chemical, IT, Insurance are some of the sectors which may assume leadership role over coming years. Our thesis is built on following observations:

a) Historically, post three major corrections of 1997, 2000 and 2008, stocks which outperformed during initial base formation phase, turned out to be leaders of next

bull market and generated multi fold returns in following three years (Refer slide 2)

b) Index corrections exceeding 40% from the top had led foundation for next multi year and multi fold rally. Usually, after such a sharp decline indices undergo

basing formation for next six-nine months, which is an opportune time to construct long term portfolios while learning from the history that market may embrace new

sectors going ahead. Investors should therefore realign their portfolios accordingly (Refer slide 3)

Our Technical screeners are anchored on following broad technical concepts and applied on a universe of 918 stocks listed on NSE, to find the 2020 outperformers.

Refer a list of top 107 stocks in appendix.

a) Price structure analysis – stocks which have witnessed faster retracement of entire January – March 2020 decline in faster time, during April 2020, thereby

signalling change of guard and robust price structure. (Most domestic Pharma companies belong to this category)

b) Relative strength rankings – a set of stocks which have remained resilient during the sharp decline of February and March 2020 and relatively outperformed

against benchmarks

c) Dow Theory bullish signals – following classic Dow Theory principle of identifying trend, companies exhibiting a combination of higher high-low on Yearly time

frame (long term degree) and supported by similar signal on Monthlies (medium term degree). As the basic tenet of Dow Theory goes, trend is a friend and

therefore staying invested with these companies may be rewarding (Chemical, MNC Pharma names, are some examples of this basket)

May 21, 2020 ICICI Securities Ltd. | Retail Equity Research 2Source: Bloomberg, Spidersoftware, ICICI Direct Research

Top Picks Time frame: One Year

May 21, 2020 ICICI Securities Ltd. | Retail Equity Research 2Source: Bloomberg, Spidersoftware, ICICI Direct Research

Defying odds: Spotting change in market leadership

Sensex corrections > 30%

Year High Low Correction (%)

One year

forward return

(%)

1992 4546 1980 56 78

2000 6150 2595 58 13

2004 6249 4228 32 29

2008 21206 7697 64 75

2020* 42274 25639 40 ?

Scrip NameIdirect

Code

Buying Range TargetUpside

(%)

MarketCap

(Cr)

Britannia Industries BRIIND 3050-3150 3690 19 75237

Sanofi India SANOFI 7200-7500 8880 21 17370

Larsen & Tourbo InfoTech LTINFO 1680-1780 2050 19 14880

Syngene International SYNINT 340-375 435 22 14014

Dr Lal's Pathlab DRLAL 1500-1585 1845 20 12997

Navin Fluorine Intl. NAVFLU 1430-1510 1780 21 7444

India Cements INDCEM 115-126 150 24 3643

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May 21, 2020 ICICI Securities Ltd. | Retail Equity Research 3Source: Bloomberg, ICICI Direct Research

Learning from History

These are the examples from three

major bear markets when Nifty

corrected over 40% from the top

value.

The Stocks which exhibited

outperformance during initial

bottoming phase of Nifty, emerged

as leaders and provided above

normal returns for investors in

following three year period

Hence, investing in the current

outperformers as presented in the

appendix to this report, would help

generate decent returns over three

year period, based on historical

studies

Case 1: 2008-2009

October 2008 - February 2009 3 year period post Februuary 2009

Nifty -7 95

ITC 39 164

Page Industries 26 979

Maruti 43 157

Hero Motocorp 41 141

Sun Pharma 30 207

Lupin 32 306

SBI 30 136

Returns (%)

Case 2: 2002-2003

October 2002 - April 2003 3 year period post April 2003

Nifty -2 264

Eicher Motors 42 427

L&T 29 1273

SKF Bearings 47 596

ONGC 16 260

ABB 39 1198

Bharat Electronics 75 471

Voltas 31 1920

Returns (%)

Case 3: 1998

January - December 1998 1998-2000

Nifty -15 102

Infosys 125 1456

Wipro 250 1700

Zee Entertainment 325 2206

Returns (%)

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May 21, 2020 ICICI Securities Ltd. | Retail Equity Research

No one rings bell at bottom…Initiate positions as major supports approaching

Sensex – Quarterly Bar Chart

4

64%

57%

78%

56%

13%

75%

40%

• Index has witnessed four instances of correction exceeding 30%,

over past three decades

• Interestingly, Investing post 30% correction has always delivered

minimum one year return of 29% in three out of last four instances

• In the current context, with 40% correction from all-time highs, the

index has entered its long term support zone.

• For Investors, it is a once in a decade buying opportunity

• Empirically, post major correction, index have undergone a basing

process for next six to nine months to construct the portfolio32%

29%

Source: Bloomberg, Spidersoftware, ICICI Direct Research

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Weekly Bar Chart

Source: Bloomberg, Spider Software, ICICI Direct Research

5

• The stock has completely retraced its

immediate previous decline (| 3165-2100)

and has registered a trendline breakout

joining the highs of Sep’19 (| 3583) and

Mar’20 (| 3165) signalling strength offers

fresh entry opportunity

• Structurally, stock recorded sharp rebound

from the 61.8% retracement of the CY

2017-2018 rally (1387-3399) underpinned

by positive divergence on RSI indicator, as

price was forming lower low meanwhile

weekly 14 period RSI was forming higher

low, indicating impending positive

momentum

• We expect the stock to head towards |

3690 levels as it is the 123.6% external

retracement of the previous decline (|

3399- 2100)

Britannia Industries (BRIIND): Faster pace of retracement signifies structural turnaround…

Fundamental Outlook

• Britannia Industries is the leading biscuit manufacturer in the Indian bakery market where it has currently seven strong brands in its portfolio, including Tiger (glucose biscuits), Treat (cream

biscuits), 50-50 (crackers), Good Day (premium cookies), Marie, Milk Bikis and NutriChoice (premium high-fiber biscuits); Good Day is the company’s highest selling brand. The company derives

~75% of its revenue from the biscuits segment while 25% of its total sales comes from non-biscuits category and International market. Dairy segment accounts for ~4% while International

business contributes ~6% of overall revenues. The company is well positioned to maintain its leadership in the branded biscuit category, where the company enjoys around 33% market share in

the biscuit market size of | 35,000 crore branded biscuits category in India.

• In post Covid19 Lockdown scenario, the consumption pattern would shift towards packaged foods from loose food products. Unorganized/semi branded constitutes a large chunk of Biscuit

(~30% unorganized) and dairy (~90% Unorganised). In the long run, Brittania present in both these categories would benefit by this consumption shift. Moreover, the company has total

distribution reach of ~5.0 million outlets & direct retail outlet reach of ~2.0 million outlets and it is well placed to reap the benefit of this unorganized to organized shift

• Though the biscuit category has been growing at a slower pace, we believe unfavorable business environment for smaller / unorganized companies and increasing consumer preference of

Branded products could revive growth in the core biscuit category for the company. Moreover, we believe input cost would remain benign given excess supply of sugar & wheat (two important

raw material for the Britannia). We remain positive on the stock

Technical Outlook

Target @ | 3690

Weekly RSI in up trend sustaining above its nine periods average

1387

3583

Rising Volumes

during price up move

3165

2100

Recommendation initiated on i-click to gain at 11:30 on May 21, 2020

Rec. Price 3050.00-3150.00 Target 3690.00 Upside 19%

61.8% retracement of CY 2017-

2018 rally (1387-3399)

3399

A falling trendline breakout and a complete retracement of its previous decline signals strength

and offers fresh entry opportunity

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Weekly Bar Chart


6

• The share price has formed a higher base

after arresting intermediate correction near

key value area of | 7200 as it is confluence

of a) during ongoing long term channelised

move, on six out of eight occasions price

have found support from 21 weeks EMA

(as shown in adjoining chart), currently

placed at |7228 b) 50% retracement of

major up move seen during Mar-Apr 2020

(| 5900-8584), at | 7242. Thereby

subsequent retracement offers fresh entry

opportunity from long term prospective

• We expect the stock to form a higher base

and gradually resolve above ongoing

consolidation, paving the way to surpass

life highs of | 8584 and gradually head

towards | 8880 as it is 123.6% external

retracement of past five weeks correction

(| 8584 – 7306), at |8885

Sanofi India (SANOFI): Higher base formation at key value area offers fresh entry opportunity….

Rec. Price 7200.00-7500.00 Target 8880.00 Upside 21%Technical Outlook

8584Target

@8880

5280

Weekly MACD sustaining well above its average, indicating positive bias

3940

6775

5900


21 Weeks

EMA

Breather on falling volume, signifies healthy consolidation

During ongoing channelised move, on six out of eight occasions price have

found support from 21 weeks EMA, indicating strong support zone

Fundamental Outlook

• Sanofi remains one of the fastest growing companies in India in antidiabetic therapy. Its top five brands posted a cumulative revenue CAGR of ~14% (CY15-19), leading their combined

contribution to the company's domestic sales to grow from 44% to 54% over December 2015-19

• Post the Ankaleshwar divestiture, we expect extended focus on its branded formulations business that typically fetches better margins vis-à-vis third party contracts. Due to a change in the

product mix and new innovative launches, we expect EBITDA margins to improve ~248 bps to 24.1% over CY19-21E. Core RoE (excluding cash) is expected to improve from 23.4% in CY19 to

39.4% in CY21E

• A strong growth track record in top brands, measured new launches (including innovative launches) besides strong balance sheet and comfort on corporate governance front are some key

attributes of MNC pharma companies including Sanofi.

7306

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Weekly Bar Chart


7

• The stock has been one of the major out

performer within technology space and

has seen a decent recovery over past nine

weeks from March 2018 lows (|1230).

Since then stock has been forming higher

high-low while respecting the upward

sloping trend line (drawn adjoining the

March- April lows of | 1128-1385),

indicating elevated buying demand

• The weekly MACD logged a bullish

crossover, indicating acceleration of

upward momentum. Thus validating our

positive bias

• We expect the stock to endure its up

move and head higher to challenge its life

time highs around |2050

Larsen & Toubro InfoTech (LTINFO): Formation of higher high-low signifies elevated buying demand…

1118

2050


Fundamental Outlook

• Larsen & Toubro Infotech (LTI) is an IT service company which caters to diverse sectors like Banking (~28% of revenues), Insurance (~18% of revenues), Manufacturing (~17%), Energy &

Utilities (~11%) and CPG, retail & pharma (~11%) and Hitech Media & entertainment (~11.0%).

• Geographically the company generates revenues from the US (~69% of revenues), Europe (~16%) and remaining from Rest of the World.

• In the near term, we expect the company to face headwinds in terms of pricing pressure, lower discretionary spend and delay in deal ramp ups. However, we expect LTI to see a revival in

H2FY21E based on ramp up in deals won and recovery in troubled verticals.

• Further, the company has delivered strong double-digit revenue growth consistently, delivering industry leading growth, higher return ratios and is expected to do so post crisis. Hence, we

remain positive on the stock from a long-term perspective.

Technical Outlook

Target @

| 20501938

1210

Weekly MACD logged a bullish crossover while sustaining above its zero line, indicating acceleration of upward momentum

Stock has been sustaining well above

its upward sloping trend line


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Weekly Bar Chart


8

• The share price anchored 2019-20 decline

(|368 – 212) at key support of August

2017 low |214 and witnessed a faster

retracement as over past two months stock

entirely retraced preceding ten months

decline (| 368 – 212), indicating robust

price structure in turn suggesting structural

turnaround, thereby offering fresh entry

opportunity

• Structurally, stock have resolved out of four

years consolidation (|215-350), indicating

acceleration of upward momentum,

auguring well for next leg of up move

• We expect the stock to form a higher base

after recent sharp up move and eventually

accelerate upward momentum towards |

435 levels as it is 138.2% external

retracement of 2019-20 decline (|368-212),

placed at |427

Syngene International (SYNINT): Four years consolidation breakout signifies acceleration of upward momentum…

Over past two months, stock entirely retraced preceding ten months decline

(| 368 – 212), faster pace of retracement signifies robust price structure


Fundamental Outlook

• Syngene International (SIL) is a leading contract research organisation (CRO), which supports R&D programmes of global innovative companies

• SIL revenues have grown at ~16% CAGR in FY16-20 to | 2012 crore due to regular new client additions and scaled up revenues from existing clients. Eight of the top 10 global pharma

companies have been its availing services for the last five years. The client base has grown from 256 to 362 over FY16-20

• The company remains aggressive on the capex front (~US$451 million already spent & another ~US$100 million earmarked by FY21), attributable to order book visibility.

• With elite client additions like Amgen, Zoetis, Herbalife, GSK, etc, and multiple year extension of BMS and Baxter contracts, the company remains well poised to capture opportunities in the

global CRO space. Despite Covid-19 impact, the company posted robust performance in Q4FY20 , management commentary remains upbeat and has guided for double digit revenue growth

Technical Outlook

Target @

| 435

Weekly MACD is pointing northward after resolving out of zero line, auguring well for acceleration of upward momentum

214 212

368


349

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Weekly Bar Chart


9

• The share price during current week trade

has registered a breakout above the falling

trendline joining the highs of the last three

months thus provides fresh entry

opportunity

• The stock is in strong up trend and has

been trading in a rising channel since

Aug’18 highlighting sustained demand at

elevated levels. The stock during March

2020 has rebounded taking support at

lower band of the rising channel which also

confluence with the 52 weeks EMA

currently placed at | 1424 levels as can be

seen in the adjacent chart highlighting

overall strength

• We expect the stock to maintain positive

bias and challenge its life-time high at |

1846 in the coming months

Dr. Lal Path Labs (DRLAL): Price rebounded from major support area and a trendline breakout augurs well for next up move …

Rec. Price 1500.00-1585.00 Target 1845.00 Upside 20%Technical Outlook

Target @

| 18451846

Weekly 14 periods RSI has generated a bullish crossover, indicating continuance of positive trend

814

1122

1180

955


Sharp rebound from the major

support area of | 1200 as it is

- 52 weeks EMA

- Lower band of the rising channel

The stock is in secular up trend trading in a rising channel and has recently generated a

breakout from a falling trendline thus offers fresh entry opportunity

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Weekly Bar Chart


10

• The share price has been in secular up

trend and has been trading in a rising

channel since July 2019 highlighting

sustained demand at elevated levels. It has

recently rebounded taking support at lower

band of the rising channel which also

confluence with the 61.8% retracement of

the previous rally of CY 2019-20 (|570-

1629) placed at |975 highlighting strength

• The stock has been one of the major

outperformer and has recently formed a

fresh all time high (|1693) in the last week

of April 2020. currently it is seen forming a

higher base for the next leg of up move

• It is expected to maintain its

outperformance and head towards | 1780

levels as it is 123.6% external retracement

of last decline (|1629-977)

Navin Fluorine International (NAVFLU): The stock is in secular up trend…

977


Fundamental Outlook

Technical Outlook

1629

570

764

Target

@ 1780

Sharp rebound from the lower band

of the rising channel and 61.8%

retracement of rally (| 570-1629)

780

Weekly MACD in up trend and is seen forming base at its nine periods

average validating positive trend

The stock in secular up trend trading in a rising channel highlighting

sustained demand at elevated levels

• Established in 1967, Navin Flourine international (NFIL) operates one of the largest integrated fluorochemicals complexes in India with manufacturing locations at Surat and Dahej in Western

India and Dewas in Central India

• NFIL is present into four business verticals namely Refrigeration, Inorganic Fluroides, CRAMS, Specialty Fluorochemicals. Each business vertical constitute around equal proportion in entire

consolidated revenues

• It is believed that fluorination is difficult chemistry and NFIL has strong foothold in the said chemistry. Further, fluorspar is key RM for NFIL and given that the prices of fluorspar are lowered in

recent months, this should improve gross margins for the company

• Going ahead we expect with commissioning of cGMP-3 along with recent multi million dollar win contract for high performance polymer should aid revenue mix towards speciality business and

thereby further improvement in the OPM can’t be ruled out. This should improve return ratios for the company in the years to come


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Monthly Bar Chart


11

• The stock has generated a resolute

breakout above the last 12 months

consolidation range (| 115-68) signalling a

resumption of fresh up move and offers

fresh entry opportunity

• The lower band of the last 12 months

consolidation range is placed at the

almost identical lows of CY 2015 & 2016

placed around | 70. It is also currently

seen sustaining above its 12 months EMA

signalling strength

• The monthly MACD remains in up trend

and is seen sustaining above its nine

periods average, supporting bullish stance

• We expect the stock to continue with its

positive trend and head higher towards |

150 as it is the 50% retracement of the

entire decline of the two years (| 226-68)

India Cements (INDCEM): Price breakout from 12 months consolidation range…

70 68


Fundamental Outlook

• India Cements is among the leading players in South India with an installed capacity of 15.5 MT spread across South India, with major markets being South India, followed by West and East.

• While the company had plans to expand into Central India, it has been put on hold, which we take in a positive way as it keeps the balance sheet from stretching further. Focus on reducing debt

and improving profitability should help to reduce the company’s Debt/EBITDA to ~4x by FY22E. On the D/E front, it is comfortably placed with a ratio of 0.6x.

• Jan-20 and Feb-20 had shown signs of recovery with demand improving in South India. Further, post the lockdown, demand revival has been healthy in South, backed by robust rural demand.

India Cement has a strong brand presence as well as a well-spread network of plants to cater to this demand. Rural demand could help contain the volume decline at 6.1% for FY21E for India

Cement; we expect a strong growth in FY22E of 15% led by improving demand

• With cost benefits expected to accrue from the fall in crude prices, India Cements should see reduction in production costs with petcoke prices reducing. The company’s EBITDA margins are

expected to improve to 14% in FY22E from 11% clocked in FY19 and 13% expected in FY20E.

• From a valuation perspective, the company is available below 9x FY22E EV/EBITDA and an EV/t of ~$65/t, while replacement costs could range ~50% higher from the current EV/t

Technical Outlook

Target @

| 150

226

67

Monthly MACD remains in up trend sustaining above its nine periods average

Breakout from the

last 12 months

consolidation range


Price rebounding from CY 2015 &

2016 almost identical lows

115

12 months

EMA

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May 21, 2020 ICICI Securities Ltd. | Retail Equity ResearchSource:: ICICI Direct Research

12Click here to go to top

Appendix 1

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Resilient stocks CY20

Note: 1) Stocks with Bold and Italic font in above table are our recommendations2) The list of stocks enlisted in the above report is selected on the basis of certain statistical and technical models. This report recommends only 7(seven) stocks indicated in the report and other stocks are mentioned only for analysis purpose

Sr No Scrip Name NSE Symbol

Market Capital

(Crores)

YTD Returns

(in %)

Away from

52 weeks

High (%)

Structural

Turnaround

Relative

Strength

Dow Theory

Buy Signal

Sector

1 Balkrishna Inds BALKRISIND 969 -2 26 √ √ Auto and ancillaries

2 Escorts ESCORTS 867 38 8 √ √ Auto and ancillaries

3 WABCO India WABCOINDIA 6814 5 2 √ √ √ Auto and ancillaries

4 H D F C HDFC 1627 -33 38 √ BFSI

5 HDFC AMC HDFCAMC 2475 -23 35 √ BFSI

6 HDFC Bank HDFCBANK 857 -33 36 √ BFSI

7 Kotak Mah. Bank KOTAKBANK 1160 -31 34 √ BFSI

8 SBI Life Insuran SBILIFE 716 -26 31 √ BFSI

9 HDFC standard Life HDFCLIFE 99769 -23 26 √ √ BFSI

10 ICICI Lombard ICICIGI 56809 -11 14 √ √ BFSI

11 AIA Eng AIAENG 1644 0 19 √ Capital goods

12 GMM Pfaudler GMMPFAUDLR 3512 88 14 √ √ Capital goods

13 Ircon Intl. IRCON 84 5 30 √ Capital goods

14 Schaeffler India SCHAEFFLER 3199 -32 42 √ Capital goods

15 Vesuvius India VESUVIUS 870 -21 30 √ Capital goods

16 Aarti Inds. AARTIIND 1001 21 17 √ √ Chemicals

17 Alkyl Amines ALKYLAMINE 1751 61 13 √ √ Chemicals

18 Astec Life ASTEC 661 45 2 √ √ √ Chemicals

19 Atul ATUL 4443 10 21 √ √ Chemicals

20 Bayer Crop Sci. BAYERCROP 4496 26 3 √ √ √ Chemicals

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21 Deepak Nitrite DEEPAKNTR 506 36 11 √ √ Chemicals

22 Galaxy Surfuctnt GALAXYSURF 1288 -14 28 Chemicals

23 IOL Chemicals IOLCP 388 123 7 √ √ √ Chemicals

24 Navin Fluo.Intl. NAVINFLUOR 1507 50 12 √ √ √ Chemicals

25 Sudarshan Chem. SUDARSCHEM 361 -11 28 √ Chemicals

26 Akzo Nobel AKZOINDIA 1807 -8 29 √ √ Consumption

27 Asian Paints ASIANPAINT 1500 -16 22 √ √ Consumption

28 Britannia Inds. BRITANNIA 3128 3 12 √ √ Consumption

29 Cera Sanitary. CERA 2186 -19 29 √ Consumption

30 Colgate-Palm. COLPAL 1351 -8 16 √ √ Consumption

31 Dabur India DABUR 440 -4 16 √ √ Consumption

32 Dixon Technolog. DIXON 4391 16 12 √ √ Consumption

33 Godrej Consumer GODREJCP 565 -18 28 √ Consumption

34 Hind. Unilever HINDUNILVR 1991 4 24 √ √ Consumption

35 United Spirits MCDOWELL-N 575 -4 24 √ √ Consumption

36 Nestle India NESTLEIND 16303 10 10 √ √ Consumption

37 Pidilite Inds. PIDILITIND 1370 -1 20 √ Consumption

38 Radico Khaitan RADICO 298 -5 31 √ Consumption

39 Relaxo Footwear RELAXO 614 0 26 √ Consumption

40 Supreme Inds. SUPREMEIND 914 -21 35 √ Consumption


Market Capital

(Crores)

YTD Returns

(in %)

Away from

52 weeks

High (%)

Structural

Turnaround

Relative

Strength

Dow Theory

Buy Signal

Sector

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Market Capital

(Crores)

YTD Returns

(in %)

Away from

52 weeks

High (%)

Structural

Turnaround

Relative

Strength

Dow Theory

Buy Signal

Sector

41 Tata Consumer TATACONSUM 361 12 12 √ √ Consumption

42 Titan Company TITAN 849 -29 40 √ Consumption

43 Trent TRENT 423 -20 49 √ Consumption

44 TTK Prestige TTKPRESTIG 4865 -15 37 √ Consumption

45 Varun Beverage VBL 603 -15 30 √ √ Consumption

46 V-Guard Inds. VGUARD 172 -19 34 √ Consumption

47 Voltas VOLTAS 454 -31 41 √ Consumption

48 Adani Ports ADANIPORTS 324 -12 27 √ Infrastructure

49 Ambuja Cements AMBUJACEM 180 -8 27 √ Infrastructure

50 Heidelberg Cem. HEIDELBERG 155 -12 32 √ Infrastructure

51 India Cements INDIACEM 118 65 3 √ √ √ Infrastructure

52 JK Cement JKCEMENT 1093 -7 28 √ Infrastructure

53 The Ramco Cement RAMCOCEM 562 -26 38 √ Infrastructure

54 Shree Cement SHREECEM 19412 -5 26 √ √ Infrastructure

55 UltraTech Cem. ULTRACEMCO 3529 -13 29 √ Infrastructure

56 Mishra Dhatu Nig MIDHANI 198 27 28 √ √ Metals

57 Bharti Airtel BHARTIARTL 594 30 1 √ √ Others

58 Coromandel Inter COROMANDEL 609 14 6 √ √ Others

59 Dhanuka Agritech DHANUKA 465 15 18 √ √ Others

60 Gujarat Gas GUJGASLTD 250 5 21 √ Others

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Market Capital

(Crores)

YTD Returns

(in %)

Away from

52 weeks

High (%)

Structural

Turnaround

Relative

Strength

Dow Theory

Buy Signal

Sector

61 Indraprastha Gas IGL 454 6 15 √ √ Others

62 Bharti Infratel INFRATEL 201 -20 29 √ √ Others

63 Mahanagar Gas MGL 898 -16 29 √ Others

64 Rallis India RALLIS 207 23 21 √ Others

65 TCI Express TCIEXP 543 -27 41 √ √ Others

66 Aarti Drugs AARTIDRUGS 797 38 10 √ √ √ Pharma and Healthcare

67 Abbott India ABBOTINDIA 16635 27 12 √ √ Pharma and Healthcare

68 Advanced Enzymes ADVENZYMES 158 -4 28 Pharma and Healthcare

69 Ajanta Pharma AJANTPHARM 1439 48 11 √ √ √ Pharma and Healthcare

70 Albert David ALBERTDAVD 491 20 13 √ √ Pharma and Healthcare

71 Alkem Lab ALKEM 2434 21 17 √ √ √ Pharma and Healthcare

72 Alembic Pharma APLLTD 870 52 2 √ √ √ Pharma and Healthcare

73 Apollo Hospitals APOLLOHOSP 1288 -11 29 √ Pharma and Healthcare

74 Astrazeneca Phar ASTRAZEN 2967 13 20 √ √ Pharma and Healthcare

75 Aurobindo Pharma AUROPHARMA 708 55 20 √ √ Pharma and Healthcare

76 Biocon BIOCON 347 18 7 √ √ √ Pharma and Healthcare

77 Cadilla Healthcare CADILAHC 338 33 12 √ √ √ Pharma and Healthcare

78 Caplin Point Lab CAPLIPOINT 320 6 31 √ √ √ Pharma and Healthcare

79 Cipla CIPLA 621 30 4 √ √ √ Pharma and Healthcare

80 Divi's Lab. DIVISLAB 2373 29 6 √ √ Pharma and Healthcare

81 Dr Reddy's Labs DRREDDY 3910 36 9 √ √ Pharma and Healthcare

82 ERIS Lifescience ERIS 475 0 25 √ √ Pharma and Healthcare

83 FDC FDC 235 11 14 √ √ √ Pharma and Healthcare

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Market Capital

(Crores)

YTD Returns

(in %)

Away from

52 weeks

High (%)

Structural

Turnaround

Relative

Strength

Dow Theory

Buy Signal

Sector

84 Glaxosmi. Pharma GLAXO 1374 -15 20 √ √ Pharma and Healthcare

85 Granules India GRANULES 172 40 10 √ √ Pharma and Healthcare

86 Hester Bios HESTERBIO 1121 -23 46 √ √ Pharma and Healthcare

87 Ipca Labs. IPCALAB 1600 41 14 √ √ Pharma and Healthcare

88 J B Chem & Pharm JBCHEPHARM 650 53 6 √ √ √ Pharma and Healthcare

89 Dr Lal Pathlabs LALPATHLAB 1560 4 16 √ √ Pharma and Healthcare

90 Laurus Labs LAURUSLABS 459 28 16 √ √ √ Pharma and Healthcare

91 Lupin LUPIN 873 14 5 √ √ √ Pharma and Healthcare

92 Natco Pharma NATCOPHARM 602 1 18 √ √ Pharma and Healthcare

93 Pfizer PFIZER 4326 2 17 √ √ Pharma and Healthcare

94 Sanofi India SANOFI 7544 8 12 √ √ Pharma and Healthcare

95 Sequent Scien. SEQUENT 84 18 16 √ √ Pharma and Healthcare

96 Solara Active SOLARA 462 6 36 √ √ Pharma and Healthcare

97 Sun Pharma.Inds. SUNPHARMA 456 5 11 √ √ √ Pharma and Healthcare

98 Syngene SYNGENE 350 9 4 √ √ √ Pharma and Healthcare

99 Torrent Pharma. TORNTPHARM 2570 39 6 √ √ √ Pharma and Healthcare

100 Zydus Wellness ZYDUSWELL 1212 -18 35 √ √ Pharma and Healthcare

101 HCL Tech HCLTECH 527 -7 16 √ √ Technology

102 Infosys INFY 670 -8 22 √ Technology

103 L & T Infotech LTI 1784 2 13 √ √ Technology

104 Mindtree MINDTREE 904 13 16 √ √ Technology

105 Info Edg.(India) NAUKRI 2397 -5 24 √ √ Technology

106 Tata Elexsi TATAELXSI 788 -5 30 √ √ Technology

107 TCS TCS 1954 -10 16 √ √ Technology

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Pankaj Pandey Head–Research [email protected]

ICICI Direct Research Desk,

ICICI Securities Limited,

1st Floor, Akruti Trade Centre,

Road No 7, MIDC,

Andheri (East)

Mumbai – 400 093

[email protected]

May 21, 2020 ICICI Securities Ltd. | Retail Equity Research 18

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