Nifty 18210.95 (-0.31%)
Sensex 61143.33 (-0.34%)
Nifty Bank 40874.35 (-0.88%)
Nifty IT 35503.9 (0.97%)
Nifty Financial Services 19504.75 (-0.74%)
Adani Ports 745.85 (-0.54%)
Asian Paints 3094.65 (4.20%)
Axis Bank 787.50 (-6.46%)
B P C L 427.70 (-0.78%)
Bajaj Auto 3776.50 (-0.40%)
Bajaj Finance 7482.15 (-4.75%)
Bajaj Finserv 18012.00 (-1.86%)
Bharti Airtel 702.35 (0.88%)
Britannia Inds. 3697.85 (0.14%)
Cipla 922.50 (1.65%)
Coal India 173.60 (-0.83%)
Divis Lab. 5149.35 (2.60%)
Dr Reddys Labs 4662.70 (-0.08%)
Eicher Motors 2583.90 (-0.25%)
Grasim Inds 1728.40 (-0.63%)
H D F C 2915.00 (0.12%)
HCL Technologies 1177.15 (0.89%)
HDFC Bank 1642.80 (-0.60%)
HDFC Life Insur. 693.85 (0.55%)
Hero Motocorp 2690.15 (-0.38%)
Hind. Unilever 2396.60 (-1.65%)
Hindalco Inds. 479.85 (-1.28%)
I O C L 130.80 (-0.53%)
ICICI Bank 835.00 (0.68%)
IndusInd Bank 1142.55 (-1.07%)
Infosys 1728.95 (1.48%)
ITC 238.45 (0.74%)
JSW Steel 684.90 (-1.36%)
Kotak Mah. Bank 2188.25 (-1.03%)
Larsen & Toubro 1784.55 (-0.65%)
M & M 886.80 (-0.87%)
Maruti Suzuki 7356.25 (0.81%)
Nestle India 19004.60 (-1.11%)
NTPC 141.30 (-1.33%)
O N G C 157.90 (-3.19%)
Power Grid Corpn 190.25 (-0.08%)
Reliance Industr 2627.40 (-1.26%)
SBI Life Insuran 1186.00 (1.19%)
Shree Cement 28107.75 (1.19%)
St Bk of India 519.15 (1.29%)
Sun Pharma.Inds. 825.10 (1.43%)
Tata Consumer 818.75 (1.22%)
Tata Motors 497.90 (-2.11%)
Tata Steel 1326.15 (-1.30%)
TCS 3489.75 (0.21%)
Tech Mahindra 1567.85 (0.29%)
Titan Company 2460.10 (0.22%)
UltraTech Cem. 7354.20 (1.17%)
UPL 741.50 (3.96%)
Wipro 671.10 (0.44%)

5 short term trades

5 short term trades
by Gautam Upadhyaya 02/06/2018

Short term calls are the buy/sell recommendations generated on the basis of technical and derivative data points with a trading horizon of 2-5 days. The objective is to capture stocks displaying strong momentum or a short-term reversal in trend. Short term calls will be generated in cash and F&O segments. The calls should be executed when the underlying price is quoting within the mentioned range.

1) Reliance Industries Limited - Buy

Stock

Reliance Industries Limited

Recommendation

The stock has formed a large bullish engulfing candlestick pattern and has witnessed a strong bounce from its 200-day EMA backed by a surge in volumes. Derivative data indicates fresh long formation.

Buy/Sell

Range

Target

Stop Loss

Buy (Cash)

1100-1110

1325

960


2) Tata Power Company Limited - Buy

 

Stock

Tata Power Company Limited

Recommendation

The stock is on the verge of a flag pattern breakout on the daily chart and has taken support along the rising trend line. It has also shown positive momentum on the weekly MACD histogram. Derivative data indicates fresh long formation in the stock.

Buy/Sell

Range

Target

Stop Loss

Buy(Cash)

75-76

91.5

65

3) ITC Ltd - Buy

Stock

ITC Ltd

Recommendation

The stock has witnessed a positive bounce from its support levels on the weekly chart (89-period EMA). It has also managed to give a close above its 200-day EMA on the daily chart. Derivative data indicates fresh long positions in the stock.

Buy/Sell

Range

Target

Stop Loss

Buy (Cash)

Rs280-283

Rs324

Rs254

 


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5 Stocks for next week 5th Feb-9th Feb 2018

5 Stocks for next week 5th Feb-9th Feb 2018
by Gautam Upadhyaya 02/06/2018

MARUTI SUZUKI INDIA- SELL


Stock

MARUTI

Recommendation

The stock has breached its support levels on the daily chart and has witnessed a bearish crossover on the daily MACD indicators. Maruti has also given a close below its 10 period EMA on the weekly chart, which affirms our negative view on the stock.

Buy/Sell

Range

Target

Stop Loss

SELL(FEB FUTURES)

8980-9020

8600

9293

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 Day M.A

MARUTI

273140

10000/5804

8028


 

HDFC BANK- SELL


Stock

HDFC BANK

Recommendation

The stock has breached its support levels along the rising trend line and is on the verge of witnessing a bearish crossover on the daily MACD indicator. The stock has formed a shooting star candlestick pattern on the weekly chart.

Buy/Sell

Range

Target

Stop Loss

SELL(FEB FUTURES)

1948-1960

1880

1993

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 Day M.A

HDFCBANK

504763

2014-1294

1743


 

PIRAMAL ENTERPRISES-SELL

Stock

PIRAMAL ENTERPRISES

Recommendation

The stock has faced resistance along the declining trend line and has given a breakdown on the daily chart. Derivative data suggests fresh short position, which is indicated by a rise in O.I and decline in price.

Buy/Sell

Range

Target

Stop Loss

SELL(FEB FUTURES)

2642-2658

2505

2749

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

PEL

47779

3083/1700

2611


 

POWER FINANCE- SELL

Stock

POWER FINANCE

Recommendation

The stock has breached its support levels on the weekly chart after witnessing a sideways consolidation for nearly seven months. The stock has formed a large bearish candlestick patter on the daily chart. Derivative data suggests fresh short formation in the stock indicated by rise in open interest and decline in price. We expect the negative trend to continue in the following week.

Buy/Sell

Range

Target

Stop Loss

 Buy

110-112

104

115.8

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

PFC

29291

169/110

126


 

BRITANNIA LTD- BUY


Stock

BRITANNIA LTD

Recommendation

The stock is in a rising channel formation on the weekly chart and has given a positive bounce from its support levels. We expect the positive momentum to continue in the stock.

Buy/Sell

Range

Target

Stop Loss

Buy

4715-4729

4910

4572

NSE Code

Market Cap(Rs in Cr)

52-week High /low

200 M.A

BRITANNIA 

56787

4963/2918

4258


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5 Stock Tips This Dussehra

5 Stock Tips This Dussehra
by Nikita Bhoota 02/06/2018

Dussehra is considered to be an auspicious festival in India. On this day, Lord Rama has killed Ravana. This festival signifies the victory of good over the evil. Similarly, an investor can overcome their loss-making investments by adding the right stocks in their portfolio. Based on research, fundamentals and valuations, we recommend the following stocks for investment this Dussehra.

Infosys

Infosys is the second largest IT Company in India. The company’s service lines are more focused on discretionary spends like ADM and ERP constituting 67% of the revenues. On the vertical front, BFSI accounts for 33% of the revenue. Geographically, North America contributes ~61.9% of the revenue followed by Europe (~22.5%) in FY17. We expect 11% revenue CAGR over FY17-19E due to pickup in BFSI and retail segment supported by higher customer spends in the US. Similarly, large deal wins will keep the growth momentum. We expect 8% EBITDA CAGR over FY17-FY19E due to increasing focus on cost optimization. We expect 5% PAT CAGR of over FY17-FY19E. The appointment of Mr Nandan Nilekani as the non-executive chairman would restore a sense of security among investors, employees, and clients. We expect an upside of 15% from CMP of Rs 898 over a period of 1 year.

Year Net Sales (Rs Cr) OPM (%) Net Profit (Rs Cr) EPS (Rs) PE (x) BVPS (Rs) P/BV (x)
FY17 68,485 27.2 14,353 62.5 14.4 296.2 3.0
FY18E 70,746 26.6 14,326 62.4 14.4 358.6 2.5
FY19E 76,058 27.1 14,993 65.3 13.8 423.9 2.1

Source: 5paisa research

Aurobindo Pharma

Aurobindo Pharma Limited (Aurobindo) manufactures generic pharmaceuticals and active pharmaceutical ingredients in India. The company's product portfolio is spread across six major therapeutic categories of antibiotics, anti-retrovirals (ARV), CVS, CNS, gastroenterological, pain management, and anti-allergic.  It derived 79% of revenue from generic pharmaceuticals and remaining from active pharmaceutical ingredients in FY17. Geographically, US business contributes 44% to Aurobindo’s total revenue.  We expect 20% revenue CAGR over FY17-FY19E due to strong pipeline of 134 products which majorly includes niche and high value products. Clearance to unit 7 in Hyderabad is also beneficial for the company. Further, recent approval for serum and tablet formulations of gRenvela will also boost the revenues. We expect margins to improve by 110 bps as strategic backward integration of marketing with API manufacturing is expected to reduce the intensity of ongoing pricing pressure. We expect 28% PAT CAGR over FY17-FY19E. We expect an upside of 15% from CMP of Rs 698 over a period of 1 year.

Year Net Sales (Rs Cr) OPM (%) Net Profit (Rs Cr) EPS (Rs) PE (x) BVPS (Rs) P/BV (x)
FY17 15,089 23.1 2,301 39.3 17.5 161.0 4.3
FY18E 16,301 23.2 2,386 40.7 16.9 201.7 3.4
FY19E 18,173 25.5 2,947 50.3 13.7 252.0 2.7

Source: 5paisa research

Manappuram Finance

Manappuram Finance is an NBFC, offering gold loans, microfinance, housing loans and commercial vehicle loans. Its AUM comprised of gold loan (81.4%), microfinance (13.14%), housing finance (2.2%) and others (1%) in FY17. We expect income to grow at 28% CAGR over FY17-FY19E on account of pickup in gold segment. The company is strongly focusing on short-term gold loans owing to current volatility in gold prices. Manappuram is also focusing on housing finance and microfinance and targets to derive 50% of revenue from these segments in next three years. We expect AUM to grow at 20% CAGR over FY17-FY19E. We expect GNPA to remain flat at 0.8% in FY18E. We expect an upside of 18% from CMP of Rs 95 over a period of 1 year.

Year NII (Rs Cr) Net Profit (Rs Cr) EPS (Rs) ROE (%) P/BV
FY17 1,943 726 1.7 24.8 2.8
FY18E 2,185 836 2.0 24.9 2.5
FY19E 2,489 959 2.3 24.9 2.1

Source: 5paisa research

Titan

Titan Company is India’s leading player in branded jewellery, watches and precision eyewear. Its revenue consists of Jewellery (78%), Watches (15%), Eyewear (3%) and others (4%) in FY17. We expect 42% revenue CAGR over FY17-FY19E on account of sub-brand Rivaah in wedding jewellery segment. With this, Titan targets to reach 40% market share in FY21E vs 22% in FY17E. Additionally, the entry in high value studded jewellery will also support the revenue growth. Recently, government has fixed GST rate of 3% (expected 5%) on gold which bodes well for the company. We expect EBITDA margins to improve by 90bps over FY17-FY19E on account of cost saving initiatives by the company. Titan is a debt free company which lends financial stability. We expect 60% PAT CAGR over FY17-FY19E. We expect an upside of 15% from CMP of Rs 587 over a period of 1 year.

Year Net Sales (Rs Cr) OPM (%) Net Profit (Rs Cr) EPS (Rs) PE (x) BVPS (Rs) P/BV (x)
FY17 12,614 9.5 761 8.6 68.5 48.6 12.1
FY18E 15,075 9.9 1,019 11.5 51.1 60.0 9.8
FY19E 17,968 10.4 1,285 14.5 40.6 74.5 7.9

Source: 5paisa research

Asian Paints Ltd (ASL)

Asian Paints is the largest paint manufacturer in India with market share of 53% in decorative paints and has a strong dealer network of ~45000 dealers. We expect revenue CAGR of 14% over FY17-FY19E on account of strong demand for decorative paints due to shorter repainting cycle (repainting forms 65% of the decorative paint demand). ASL is working on 2 Greenfield projects (Mysuru-6,00,000 KL and Vishakhapatnam- 5,00,000KL) to expand its decorative paint capacity.  The first phase of both the capacities- 3,00,000 KL will be completed by FY19E. GST will reduce the tax arbitrage for the unorganized segment (30% of industry) and will provide additional benefit to the organized players in the long run. We expect EBITDA CAGR of 14% over FY17-FY19E due to shift from distemper to external emulsion (high margin) in decorative paint business. We expect PAT CAGR of 11% over FY17-FY19E. We expect an upside of 15% from CMP of Rs 1161 over a period of 1 year.

Year Net Sales (Rs Cr) OPM (%) Net Profit(Rs Cr) EPS (Rs) PE (x) BVPS (Rs) P/BV (x)
FY17 15,290 19.8 2026 21.1 55 79.3 15.1
FY18E 17,244 19.6 2173 22.7 51 93.8 12.8
FY19E 19,908 19.9 2533 26.4 44 110.7 10.8

Source: 5paisa research

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5 Penny Stocks which are not Penny

5 Penny Stocks which are not Penny
by Nikita Bhoota 03/06/2018

Penny stocks are the ones which trade at a very low price. Usually, these stocks lack liquidity and carry high risk. The public information available on these stocks/companies is very limited, which makes it difficult for an investor to understand the future prospects of the business. However, penny stocks with good fundamentals and strong business models have the potential to become multi baggers in the long run. Here are some of these stocks.

Sintex Plastics (SPTL)

SPTL was established by transferring the plastic business (66% of FY17 revenue) and the Prefab & Infra business of Sintex Industries (34% of FY17 revenue). Sintex Plastics, a leading player in custom molding business (mainly composites), stands to benefit from growing trend of composites replacing metal parts across industries. Thus, we expect revenue CAGR of 12.8% over FY18E-20E. We see EBITDA CAGR of 15.6% over FY18E20E due to operating leverage and better product mix over FY18E-20E. Owing to the decline in interest outgo, we expect SPTL to post 17.5% PAT CAGR over FY18E-20E. SPTL is done with its capex cycle and has lowered its focus on w/c intensive Prefab & Infra business, thus enhancing cash generation. This will lead to net debt declining by ~Rs1,500cr over FY17-20E.

Year Net Sales (Rs Cr) OPM (%) Net Profit (Rs Cr) EPS (Rs) PE (x)
FY18E 5,996 15.0% 332 5.6 11.6
FY19E 6,757 15.3% 392 6.6 9.9
FY20E 7,635 15.7% 458 7.8 8.4

Source: 5paisa research

NHPC

NHPC is a hydropower generation company with power generation capacity of 5,171MW in FY17. The company generated 23,275mn units of electricity against a target of 23,000 for FY17. The company is planning a significant expansion of power generation capacity over the coming years. A total of 8,481MW is currently under the clearance/approval stage. This includes plans to setup a thermal plant (1,320MW capacity) through a joint venture. We expect the company to report revenue CAGR of 18.1% over FY18E-20E aided by 7.2% CAGR in generation volumes and Plant Load Factor (PLF) remaining at 62-63% over the same period. We see EBITDA CAGR of 28.2% over FY18E20E aided by better utilization of newly added capacity. We expect PAT CAGR of 20.8% over FY18E-20E.

Year Net Sales (Rs Cr) OPM (%) Net Profit (Rs Cr) EPS (Rs) PE (x)
FY18E 9,031 57.3% 2855 2.8 9.9
FY19E 10,700 63.3% 3,593 3.5 7.9
FY20E 12,600 67.4% 4167 4.1 6.8

Source: 5paisa research

MEP Infra

MEP Infrastructure is independently and collectively engaged in toll projects, OMT (Operate, Manage & Transfer), Hybrid Annuity Model (HAM) and BOT. Due to MEP's JV with San Jose India, it is strategically planning to extend its road development portfolio based on HAM. It has bagged 5 new projects under HAM model worth Rs3,230cr.  MEP has achieved the first milestone for the Nagpur, Package-II and Mahuva to Kagavadar project. The Authority paid the first milestone payment (20% of physical progress) for Nagpur, Package-II and Mahuva to Kagavadar. The appointment date for other two HAM projects is expected shortly. The company has started collecting toll from 124 entry points to Delhi. EPC order book of Rs3,000cr also provides strong revenue visibility. Thus, we expect 27% CAGR in revenue over FY18E-20E. We see PAT CAGR of 39% over FY18E-FY20E.

Year Net Sales (Rs Cr) OPM (%) Net Profit (Rs Cr) EPS (Rs) PE (x)
FY18E 2,444 44.2% 67 4.1 20.9
FY19E 3,877 33.3% 116 7.2 12.0
FY20E 3,994 33.6% 124 7.6 11.3

Source: 5paisa research

IDFC Ltd

IDFC Limited, through its subsidiaries, operates as a non-banking financial company in India. We expect NII to grow at CAGR of ~23% over FY18E-20E led by ~20% growth in credit. Among segments, faster growth is expected to come from retail. Expansion of banking business and non-interest income growth from AMC and securities business will lead to strong loan book growth. Its NIM is expected to expand by ~20bps yoy to 2.30% in FY18E. We foresee non-interest income to grow by ~16% yoy in FY18E supported by the Infra Development Fund worth ~Rs440cr. Alternative Investment Fund is expected to benefit from PE deals and infra debt management. Due to higher granularity, we expect NPA to improve in FY18E. It has increased its focus on branch efficiency, which should improve cost/income ratio.

Year Net Profit (Rs Cr) EPS (Rs) PE (x) P/BV
FY18E 851 5.3 9.8 0.7
FY19E 1,193 7.5 7.0 0.6
FY20E 1,445 9.1 5.7 0.6

Source: 5paisa research

SJVN

SJVN is a power generation company which operates hydro, wind and solar plants. The total power generation capacity at the end of FY17 stood at 1,964.6MW. Hydroelectric sources generate power of 1,912MW with wind and solar accounting for 47.6MW and 5MW respectively. SJVN is also planning to set up a 1,320MW thermal power plant at Buxar, Bihar. The company has committed to develop 1,000MW of solar power generation capacity over the next 5-7 years. We expect the company to report revenue CAGR of 7% over FY18E-20E aided by near ~100% utilization levels over FY18E-20E. We foresee EBITDA CAGR of 6.9% over FY18E-20E aided by better utilization of new capacity added by the end of FY19E. We expect PAT CAGR of 6.9% over FY18E-20E.

Year Net Sales (Rs Cr) OPM (%) Net Profit (Rs Cr) EPS (Rs) PE (x)
FY18E 2,669 78.8% 1561 3.8 9.2
FY19E 2,856 78.7% 1,691 4.1 8.5
FY20E 3,055 78.6% 1784 4.3 8.1

Source: 5paisa research

Disclaimer: Stocks mentioned in this article are not stock recommendations. They get mention in the story on the basis of their performance.

Research Disclaimer

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Secrets of successful trading

Secrets of successful trading
01/08/2018

People who are new to stock markets are often enthusiastic about trading and look for quick and easy ways to become rich. These factors usually restrict their understanding of the market, and they lose out on tactics of trading. Below are ten trading secrets for the newbie traders.

1. Limit the capital investment

Most of the beginners are eager to earn quick money. They have a perception that investing a lot of money during initial days can help them earn money. The most valuable tip for any beginner is that he should spend a limited amount of money as capital initially. It is better to set a percentage limit to the capital invested in one company or trade.

2. Do not expect early profits

The mindset of most of the beginners is to earn short term gains. It acts as a hindrance in rational decision making. Hence, beginners should make sure that they carry the right attitude for trading, not expecting quick profits.

3. Keep a trading journal

Staying updated with recent events and news is essential in the stock market. Trade journals are the best source for gaining knowledge. A trader should get into the habit of reading these journals and relate them to their daily trading.

4. Risk analysis

Risk analysis is critical to evaluate which stocks or securities should an investor invest in. Beginners tend to give less importance to risk analysis. Hence, they are not aware of the impact of loss in trading. It is imperative for traders to understand risk management right from the very beginning so that they can hedge losses.

5. Invest time to understand different techniques

People who start to learn trading are familiar with limited techniques. They become complacent with this procedure and fail to learn new methodologies. To be a successful trader, it is a must to evolve different skills and techniques.

6. Avoid penny stocks

Penny stocks are traded on the stock exchanges and provide high return along with high risk. These stocks have a small market capitalization and lack liquidity. New traders should be cautious of these stocks as they can easily get tempted to buy these stocks in order to earn high returns.

7. Control over emotions

It is very common for beginners to get carried away by emotions. It restricts their rational thinking and they lose focus on their trades. One needs to be in control of emotions irrespective of profits or losses.

8. earn the basics first

A lot of people start trading without actually knowing the basics of the stock market. They are not aware about how the market functions. Lack of knowledge narrows the focus of trader to a single strategy which he is aware of.

9. Avoid leverage

It is always advisable to not use the leveraged money (borrowed) while investing. It increases the price of trading and limits the understanding of the trader.

10. Diversification

Diversification is the process of investing in different instruments in order to minimize risk. It is useful for beginners who lack knowledge about specific sectors. It is always wise to diversify your investments across different sectors and industries. 

Next Article

The Art of Trading

The Art of Trading
01/09/2018

Trading in the share market can be complicated and unpredictable. You must have heard people talk about making and losing money in the share market.

Trading in the share market requires fundamental knowledge of all the factors that influence the demand and supply in the market. Given below are some trading tips that can help you cut your losses by investing in a more efficient way.

  1. Stop loss
  2. Stop loss is a trading tool that allows you to cut your losses while trading in the market. When you put a stop loss at a certain price of your stock, it is automatically sold when the price falls below the stop loss price level. For example, if you have bought shares of a company at Rs100 and you have put a stop loss order at Rs90. If the price falls to Rs90, your shares will be sold automatically, thereby reducing your loss to just Rs10.

  3. Background research
  4. You must thoroughly research the company in which you want to invest in order to make a successful investment decision. Background research involves checking the balance sheet, income statement, cash flow statement, short-term and long-term earnings, and the company's past performance. It will allow you to determine the future growth potential of the company and whether you will be able to get a regular dividend if you choose to invest your money in the company.

  5. Regularly monitoring investments
  6. One of the best trading tips to be successful in the share market is to monitor your investments on a regular basis. Regular monitoring of investments helps you sell your shares immediately if you think they are going to fall below a particular price. Apart from this, you can also earn huge amount of profits by selling your shares at the time when they are at their highest price.

  7. Patience
  8. Investors lose out on great opportunities when they sell their stocks too early. If the price goes slightly higher, they sell the stocks and book whatever profits they get even when they could have made so much more had they waited a little longer. You must be patient and wait for the perfect time before making an investment decision. You should sell your stocks only after analyzing the market trend. If you are sure that the market will not rise any higher, then only you should go ahead with your decision to sell.

  9. Don't follow the herd

One of the most gruesome mistakes you can commit in the share market is to invest just because everyone else is investing. You have to understand that your financial position is in no way similar to any other person. What they might think is a perfect investment for them can turn out to be the worst investment for you. You should make your own decisions after carefully analyzing your financial condition and determining what you stand to gain and lose.

If you are passionate enough about investing in the share market, you should consider following these trading tips as it will help you to build wealth without losing much money.