Religare Morning Digest · 2017-04-28 · Dalmia Bharat Limited (DALMIABHA) Chennai Petroleum Corporation Limited (CHENNPETRO) ... Religare Morning Digest May 2, 2017 ... Crescent

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Religare Morning Digest

May 2, 2017

Nifty Outlook

VWAP (Expiry till date) Max OI (Call) Max OI (Put)

NIFTY 9320 9500 9000

Indian market continued to trade lower as investors preferred to book profits ahead of the long weekend. The Nifty index declined 0.4%, down 38 points to end just above 9,300 level. On sectoral front, Auto, Metals and Banking sector were top gainers. Banking stocks saw good buying interest largely led by PSU banks and select private banks on better than expected quarterly results.

The market is trading at higher levels in terms of valuation on hopes of robust earnings growth in FY18. Though there is ample liquidity in the market, traders should select fundamentally good companies while trading. A lot of companies are yet to report their Q4 results, so we expect stock specific action to continue in the coming trading sessions.

Sectors to watch

Sector Name Outlook

BANK STABLE

ENERGY STABLE

MEDIA STABLE

News

Religare Super Ideas**

FII & DII Cash Segment (Rs. in Cr.) Trade Stats

Category Amt. MTD FYTD

FII -182 -5479 -5479

DII 233 7562 7562

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 162380 12546

IDXOPT 2416196 194930

STKFUTS 721270 54764

Derivative Ideas **

Ujjivan Financial Services reported dismal Q4FY17 results as Net interest income declined 33.3% to Rs. 152.8 cr against Rs. 229 cr in the last quarter. The company’s consolidated Net profit was down 56% at Rs. 19.3 cr compared to Rs. 43.9 cr in Q3FY17.

Syngene International showed poor Q4 performance, where the company's profit was down 0.8% at Rs 78.4 cr versus Rs 79 cr (Y-o-Y). EBITDA of Syngene was down 14.5% at Rs 100.4 cr against Rs 117.4 cr, whereas EBITDA margin stood at 34.5% versus 35.4% (Y-o-Y). Revenue was down 12.1% at Rs 291.3 cr compared to Rs 331.5 cr in the same period of the previous year.

Prism Cement got the letter of intent from the Madhya Pradesh government for allotment of cement grade limestone mining lease. The lease is for a period of 50 years with reserves of 23.6 MT. The mining lease will be captive to cement plant of the company at Satna (MP).

*FII & DII data as on 27th April 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

DALMIABHA BUY 2172.25 2165-

2175 2090 2310

CHENNPETRO BUY 380.95 378-381 365 410

**Please note that the given technical and derivative recommendations are

"valid for taking position" only on recommended date and in the given range.

*Please note - Stoploss is on closing basis for delivery recommendation and intraday basis for futures recommendation.

Instrument B/S Lot INITIATION

PRICE SL

TAR-GET

IRB BUY FUTS

2500 255-257

250 275 S 270 CE 7-9



May 2, 2017

Religare Super Ideas

Investment Pick - LIC Housing Finance Ltd

LIC Housing reported a robust fourth quarter performance with NIMs of 2.97% (highest since March 2012), leading to a strong 26.6% YoY NII growth. With a well

maintained asset quality (G/NNPA 0.43/0.14%), PAT improved by 18/6% YoY/QoQ to Rs 529 cr.

The company being a leading housing financier, will be key beneficiary given the emerging opportunities and government's thrust on 'affordable housing' and

'housing for all' initiatives. LICHF's earnings visibility remains strong with declining cost of funds and stability in loan growth. We upgrade our P/ABV multiple from 2.3x to 2.4x FY19E ABV as improving margin trajectory and healthy return ratios provide comfort. We maintain a BUY on the stock with a target price of Rs 748.

Scrip CMP Target Duration Recommendation Price

LICHSGFIN 668.90 748 9-12 Months 670

IRB added around 3% of open interest as long

positions. On charts, it is trading on verge of

resistance breakout from the congestion zone of

last three years. It is also trading above its long

term as well as short term moving averages on daily

charts. We recommend doing a covered call in IRB

as per levels given below.

Strategy: BUY IRB MAY FUTS BETWEEB 255-257 &

SELL 270 CE BETWEEN 7-9, SL 250, TARGET 275.

Derivative Ideas

Dalmia Bharat Limited ( DALMIABHA) Chennai Petroleum Corporation Limited

(CHENNPETRO)

DALMIABHA has registered a fresh breakout on

daily chart, after hovering in a narrow range for

almost two weeks. This up move was supported by

noticeable volume, which confirms the breakout.

CHENNPETRO has been holding strong above its

long term as well as short term moving averages

on daily chart and formed a fresh buying pivot.

Hence, we suggest traders to initiate fresh long in

the given range.



May 2, 2017

Religare Investment Calls

Name of the Company Reco Date Reco Price Target Price Upside % Previous day Closing Price

Nandan Denim 5-Jan-16 150 183 22.0% 117.5

Atul Auto 22-Mar-16 506 580 14.6% 429.7

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 320.3

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 1,017.8

Force Motors 25-Jan-17 4,274 5,210 21.9% 4,661.5

Zee Entertainment Enterprises 27-Jan-17 498 592 18.8% 526.9

Greenply Industries 3-Feb-17 268 304 13.4% 280.3

Manpasand Beverages 7-Feb-17 681 854 25.4% 702.1

Wonderla Holidays 7-Feb-17 380 430 13.1% 390.0

Century Plyboards 8-Feb-17 216 300 38.8% 257.2

NRB Bearings 9-Feb-17 108 132 22.2% 120.9

Tv Today Network 14-Feb-17 270 360 33.3% 267.8

Sutlej Textiles 14-Feb-17 843 1,032 22.5% 918.9

Talwalkars Better Value Fitness 20-Feb-17 217 328 51.1% 269.5

SML Isuzu 21-Feb-17 1,240 1,560 25.8% 1,327.2

Arman Financial Services 22-Feb-17 226 340 50.0% 194.7

Jamna Auto 28-Feb-17 209 272 30.1% 240.9

Castrol India 7-Mar-17 412 483 17.1% 438.0

Berger Paints (I) Ltd 15-Mar-17 230 273 18.7% 261.3

Avanti Feeds 16-Mar-17 715 945 32.2% 874.1

Huhtamaki PPL Ltd 30-Mar-17 228 287 26.0% 271.3

Bajaj Finance Ltd 31-Mar-17 1,170 1,421 21.5% 1,276.2

The Byke Hospitality 11-Apr-17 191 242 26.7% 214.0

Mayur Uniquoters Ltd 18-Apr-17 380 478 25.8% 398.4

CRISIL 26-Apr-17 1,911 2,540 32.9% 1,967.1

LIC Housing Finance Ltd 28-Apr-17 670 748 11.6% 668.9



May 2, 2017

Corporate Action Calendar — May 2017 (Stock Split)

Sun Mon Tue Wed Thu Fri Sat

30 01 02 03 04

Beardsell Ltd

05

Mishtann Foods Ltd

06

Corporate Action Calendar — May 2017 (Cash Dividend)


30 01 02

TTK Prestige Ltd

03

ITD Cementation India Ltd

Stovec Industries Ltd

CRISIL Ltd

04

Vesuvius India Ltd

Indiabulls Housing Finance Ltd

05

Hatsun Agro Products Ltd

Hexaware Technologies Ltd

Kewal Kiran Clothing Ltd

06

Economic Calendar — May 2017


30 01

Eight Infrastructure Industries

02

Nikkei India PMI Mfg

03 04

Nikkei India PMI Services

Nikkei India PMI Composite

05 06

Corporate Action Calendar — May 2017 (Stock Buyback)


30 01 02 03 04

Gujarat Apollo Industries Ltd

05

06

Corporate Action Calendar — May 2017 (Stock Dividend)


30 01 02 03 04

Beardsell Ltd

05

06



May 2, 2017

Result Calendar — May 2017


30 01

Bharat Financial Inclusion Ltd

DABUR INDIA LTD.

DCM Shriram

Orient Cement Ltd

WELCURE DRUGS & PHARMACEUTICALS LTD.

02

ADINATH EXIM RESOURCES LTD.

ARTSON ENGINEERING LTD.

GRAPHIC CHARTS LTD.

COMPUAGE INFOCOM LTD.

DEEP INDUSTRIES LTD.

GRAVISS HOSPITALITY LTD.

INOX LEISURE LTD.

ISHAN DYES & CHEMICALS LTD.

J.L.MORISON (INDIA) LTD.

JM FINANCIAL LTD.-$

KANSAI NEROLAC PAINTS LTD.

MARICO LTD.

RBL Bank Ltd

RELIC TECHNOLOGIES LTD.

SHRIRAM CITY UNION FI-NANCE LTD.

SHRIRAM ASSET MANAGE-MENT CO.LTD.

03

Accelya Kale Solutions

AJANTA PHARMA LTD.

ALEMBIC PHARMACEUTICALS LTD.

AGRO TECH FOODS LTD.

DEWAN HOUSING FINANCE CORPORATION LTD.

EVEREST INDUSTRIES LTD.

GUJARAT BOROSIL LTD.

ICICI BANK LTD.

I G PETROCHEMICALS LTD.

Intellect Design Arena Ltd

Kaya Ltd

K.P.R.MILL LTD.

L&T Technology Services Ltd

MERCK LTD.

PEOPLES INVESTMENTS LTD.

P.M.TELELINNKS LTD.

ROSE INVESTMENTS LTD.

R Systems International Limited

SHANTHI GEARS LTD.

STEWARTS & LLOYDS OF INDIA LTD.-$

SUNDARAM-CLAYTON LTD.

SVC SUPERCHEM LTD.

TRIBHOVANDAS BHIMJI ZAVERI LTD.

VALIANT COMMUNICATIONS LTD

V-MART RETAIL LTD.

Zandu Realty Limited

GOLKONDA ENGINEERING ENTERPRISES LTD.

04

BASF INDIA LTD.

CERA SANITARYWARE LTD.

CRAZY INFOTECH LTD.

EASTERN TREADS LTD.

EMAMI LTD.-$

EXIDE INDUSTRIES LTD.

Godrej Properties Ltd

GREAVES COTTON LTD.

HINDUSTAN CONSTRUCTION CO.LTD.

HOUSING DEVELOPMENT FINANCE CORP.LTD.

L&T FINANCE HOLDINGS LTD.

Lancer Container Lines Ltd

Larsen & Toubro Infotech Ltd

BANK OF MAHARASHTRA

MULTI COMMODITY EXCHANGE OF INDIA

MRF LTD.

NEXT MEDIAWORKS LTD.

PTL ENTERPRISES LTD.

RAJ TELEVISION NETWORK LTD.

TATA COMMUNICATIONS LTD.

VIRAT INDUSTRIES LTD.

05

APCOTEX INDUSTRIES LTD.

APOLLO TYRES LTD.

ATUL LTD.

BLUE DART EXPRESS LTD.

CHOKSI IMAGING LTD.

Crescent Leasing Ltd

DAI-ICHI KARKARIA LTD.-$

Dalmia Bharat Sugar and Industries Ltd

Equitas Holdings Ltd

FIRSTSOURCE SOLUTIONS LTD.

GREAT EASTERN SHIPPING CO.LTD.

GLOBAL CAPITAL MARKETS LTD.

G N A Axles Ltd

INDAG RUBBER LTD.-$

INDUSTRIAL & PRUDENTIAL INVESTMENTS CO.LTD.

MAFATLAL INDUSTRIES LTD.-$

MONSANTO INDIA LTD.

NGL FINE-CHEM LTD.

NIIT TECHNOLOGIES LTD.

Rain Industries Ltd

Rajath Finance Limited

Sanofi India Ltd

Shankara Building Products Ltd

Shantai Industries Ltd

SHOPPERS STOP LTD.

SUN PHARMA ADVANCED RESEARCH COMPANY LTD.

VICTORIA MILLS LTD.

06

ACCEL FRONTLINE LTD.

ALUFLUORIDE LTD.

AMALGAMATED ELECTRICITY CO.LTD.

AYM Syntex Ltd

CHEMBOND CHEMICALS

GATI LTD.

IFGL REFRACTORIES LTD.

INDO THAI SECURITIES LTD.

JAYANT AGRO-ORGANICS LTD.

KANDAGIRI SPINNING MILLS LTD

L.G.BALAKRISHNAN & BROS.LTD.

LGB FORGE LTD.

Mangalam Organics

MAYUR FLOORINGS LTD.

NITIN SPINNERS LTD.

PFIZER LTD.

Pil Italica Lifestyle Ltd

SAMBANDAM SPINNING MILLS LTD

SHILCHAR TECHNOLOGIES

ZENITH COMPUTERS LTD.



May 2, 2017

Current Portfolio and Performance Summary as on 28th April’17

Stock Sector Entry Date Weight Reco price (`) CMP (`)

Emami Consumer Goods August 3, 2016 8.4% 1,151 1,058

Castrol India Energy August 5, 2016 9.4% 425 438

Sml Isuzu Auto February 6, 2017 9.6% 1,265 1,327

UPL Fertilisers & Pesticides March 17, 2017 10.0% 723 806

Amara Raja Batteries Auto March 22, 2017 10.9% 868 890

Cholamandalam Investment and Finance

Financial Services April 5, 2017 11.7% 975 1,112

Power Grid Corporation of India

Energy April 12, 2017 11.1% 200 208

MCX Financial Services April 28, 2017 9.9% 1,234 1,216

Cash 19.0%

Total Total 100%



May 2, 2017

Historical Performance as on 28th April’17

Performance Matrix 1-Month 3-Month 6-Month 1-Year Since Inception

Religare Alpha 12.2% 12.6% 3.6% 24.8% 40.1%

Nifty 2.2% 8.2% 7.7% 18.6% 18.0%

Outperformance 10.0% 4.5% -4.1% 6.3% 22.1%



May 2, 2017

Research Product Basket

For cash market trading

Call / Product Call Frequency No. of calls Avg open call duration % funds allocated

Intraday Calls Intraday 2 - 3 < 1 day 25%

Live / RMD Calls Daily 3 - 4 3 - 4 days 30%

Master Pick Weekly 1 1 month 15%

Religare Alpha Opportunity NA 2 - 3 months 20%

Cash NA 10%

For 1L margin*

Total Per Call

25,000 8,000

30,000 4,000

15,000 5,000

20,000 As per weightage

10,000

Intraday Calls These calls are flashed live on Ms Lync and ODIN with the purpose of squaring off positions on the same day. As a policy, we restrict our

intraday cash market calls to less than 4 calls a day. Hence, funds should be allocated accordingly to have provision to trade in all calls.

Live / RMD Calls 2 super ideas are flashed in RMD daily with a view of 3-4 days. Additionally as per market opportunity, we flash live calls during the day

(including BTST calls). 3-4 such calls are made on a daily basis which might be open for 3-4 days. Funds should be allocated keeping in mind that

there will be 7-8 such open calls daily.

Master Pick This is our weekly recommendation shortlisted on the basis of techno-funda analysis. 15% of funds is recommended to be allocated for Master

Pick considering that there will be 3 open calls. The average open duration for this call will be 1 month.

Religare Alpha This is a portfolio of 8-10 stocks which are held with a view of 2-3 months. It is recommended to allocate 20% of funds for building this portfolio

which will provide stability to the overall trading portfolio.

Cash 10% surplus cash in the portfolio should be kept for the purposes of allocating it to opportunities as and when they arrive.

For derivative market trading

Call / Product Call Frequency No. of calls Avg open call duration % funds allocated

Derivative Ideas Daily 1 - 2 1 - 3 days 40%

Live calls Intraday / Daily 1 - 2 3 - 4 days 50%

Cash NA 10%

For 1L margin*

Total Per Call

40,000 40,000

50,000 50,000

10,000

Derivative Ideas 1 derivative idea is shared in RMD daily. It can be a plain vanilla F&O buy/sell call or an option strategy. Funds should be allocated assuming 2

such calls will be open at any time. These calls are open for 3-4 days on an average.

Live Calls These calls are flashed on MS Lync and ODIN during live market hours. These calls can be intraday or with a view of 2-3 days. Funds should be

allocated considering 2 such calls will be open at any time. 3/4 times, these calls will be on Nifty / Bank Nifty only.

Cash It is recommended to hold 10% cash to capitalize on any opportunity that may arise in markets.

For every client, the advisor must allocate a specific proportion of funds for trading and investing depending on the risk taking ability and willingness of the client

and their investment goals.

The below mentioned product basket tries to address the way to deal with the trading portfolio (cash/derivative) for optimum effectiveness of research calls.

It is recommended to divide your trading funds for various types of calls and not invest the entire amount for 1 or 2 calls only.



May 2, 2017

Hitesh Agrawal [email protected]

Ajay Pasari, CFA [email protected]

Ajit Mishra [email protected]

Archana Gude [email protected]

Manoj M Vayalar [email protected]

Mehernosh Khurshed Panthaki [email protected]

Siji A Philip [email protected]

Swati Saxena [email protected]

Vipin Kumar [email protected]

Team Members



May 2, 2017

Before you use this research report , please ensure to go through the disclosure inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014 and Research Disclaimer at the following link : http://old.religareonline.com/research/Disclaimer/Disclaimer_RSL.html

Specific analyst(s) specific disclosure(s) inter-alia as required under Securities and Exchange Board of India (Research Analysts) Regulations, 2014 is/are as under:

Statements on ownership and material conflicts of interest , compensation– Research Analyst (RA)

[Please note that only in case of multiple RAs, if in the event answers differ inter-se between the RAs, then RA specific answer with respect to questions under F (a) to F(j) below , are given separately]

Nature of Interest ( if answer to F (a) above is Yes : ……………………………………………………………………………………………………………………

Name(s) with Signature(s) of RA(s).

[Please note that only in case of multiple RAs and if the answers differ inter-se between the RAs, then RA specific answer with respect to questions under F (a) to F(j) above , are given below]

Copyright in this document vests exclusively with RSL. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any

other person or published, copied, in whole or in part, for any purpose, without prior written permission from RSL. We do not guarantee the integrity of any emails or attached files and are not responsible for any changes made to them by any other person.

S. No. Statement Answer

Yes No

I/we or any of my/our relative has any financial interest in the subject company? [If answer is yes, nature of Interest is given below this table] No

I/we or any of my/our relatives, have actual/beneficial ownership of one per cent. or more securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance?

No

I/we or any of my/our relative, has any other material conflict of interest at the time of publication of the research report or at the time of public appearance?

No

I/we have received any compensation from the subject company in the past twelve months? No

I/we have managed or co-managed public offering of securities for the subject company in the past twelve months? No

I/we have received any compensation for brokerage services from the subject company in the past twelve months? No

I/we have received any compensation for products or services other than brokerage services from the subject company in the past twelve months? No

I/we have received any compensation or other benefits from the subject company or third party in connection with the research report? No

I/we have served as an officer, director or employee of the subject company? No

I/we have been engaged in market making activity for the subject company? No

SS..No. Name(s) of RA.

Signtures of RA

Serial Question of question which the signing RA needs to make a separate declaration / answer

Yes No.

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Documents

Religare Morning Digest · 2017-04-28 · Dalmia Bharat Limited (DALMIABHA) Chennai Petroleum Corporation Limited (CHENNPETRO) ... Religare Morning Digest May 2, 2017 ... Crescent