Super 7 Picks - August 2021

Techno Funda Report - August 2021

BP Equities Private Limited (www.bpwealth.com)

B P W E A L T H

Techno Funda Return For April, 2021 : 0% , Nifty Return For April, 2021 : -1.6%

Performance Tracker April 2021

Sr. No. Company Recommendation Reco Price (Rs) Target Price (Rs) Status

1 ACC Buy 1913 2240 Exit at 1888

2 BAJAJ-AUTO Buy 3743 4220 SL triggered

3 DIVISLAB Buy 3578 4070 Target Achieved

4 HCLTECH Buy 1003 1130 SL triggered

5 ICICIBANK Buy 594 690 SL triggered

6 ITC Buy 220 270 SL triggered

7 NAVINFLUOR Buy 2738 3170 Target Achieved

Performance Tracker May 2021


1 BALKRISIND Buy 1745 2100 Target Achieved

2 CIPLA Buy 910 1070 Exit at 935

3 FEDERALBNK Buy 78 98 Profit booked at 89

4 IPCALAB Buy 2105 2500 Profit booked at 2300

5 MFSL Buy 896 1030 Profit booked at 960

6 POWERGRID Buy 220 260 Profit booked at 238

7 RELIANCE Buy 1962 2320 Profit booked at 2090

Techno Funda Return For May, 2021 : 6.30% , Nifty Return For May, 2021 : 5.50%



B P W E A L T H

Performance Tracker June 2021


1 AXISBANK Buy 744 890 Exit at 750

2 BHARATFORG Buy 663 830 Profit booked at 767

3 CANBK Buy 158 195 SL triggered

4 METROPOLIS Buy 2487 3010 Target Achieved

5 PEL Buy 1783 2130 Target Achieved

6 RELIANCE Buy 2072 2430 Profit booked at 2248

7 TECHM Buy 1026 1260 Profit booked at 1100

Techno Funda Return For June, 2021 : 3.90% , Nifty Return For June, 2021 : 1.71%

Performance Tracker July 2021


1 APOLLOTYRE Buy 227 275 Exit at 225

2 BIOCON Buy 408 470 SL triggered

3 CROMPTON Buy 447 530 Profit booked at 490

4 HINDUNILVR Buy 2487 2790 SL triggered

5 ICICIGI Buy 1553.50 1760 SL triggered

6 IGL Buy 563 660 Exit at 545

7 MANAPPURAM Buy 173 198 Target Achieved

Techno Funda Return For June, 2021 : -1.60% , Nifty Return For June, 2021 : 0.30%



B P W E A L T H

9th August, 2021

Research Team

[email protected]

022-61596406

Index

Company Recommendation Price (Rs) Entry Range (Rs) Target Price (Rs) Stop Loss (Rs) Page No.

ASHOKLEY BUY 134 CMP 160 124 1

BATAINDIA BUY 1673 CMP 1900 1560 2

CUMMINSIND BUY 900 CMP 1040 839 3

GODREJIND BUY 590 CMP 700 548 4

HCLTECH BUY 1050 CMP 1250 980 5

HDFC BUY 2628 CMP 2980 2460 6

IPCALAB BUY 2171 CMP 2540 2020 7

2nd Feb ,

Buy

COMMERCIAL VEHICLES

Technical View

1. The stock has registered breakout from the falling trendline with supportive volumes which is

bullish signal for medium term trend

2. The stock has reversed finding support around 21 EMA, this average has acted as good support

on intermediate declines in past which suggests the recent trough to act as strong support.

3. Also, stock has surpassed the supply zone of 130-133 which is bullish signal for short term trend.

4. RSI has surpassed falling trend line and has surpassed the 60 levels suggests strength in price

and compliments bullish view on price.

We recommend to BUY ASHOKLEY at CMP for the target of 160 with a stop loss of 124 in

short term.

Investment Rationale

Leading company of the prestigious Hinduja Group which has a diversified presence across

industries

Ashok Leyland Limited (ALL) is the flagship company of Hinduja group founded by Shri Parmanand

Deepchand Hinduja more than hundred years back. The Hinduja group is a conglomerate which has

presence inter alia in Banking & Finance, Transport & Energy, Technology, Media and Renewables

industries and the group’s operations span across 70 countries. Hinduja group acquired stake in ALL

in 1987; since then ALL has grown to become one of the major companies of the Hinduja Group.

Long track record of operations with strong brand image and distribution network

ALL has a long track record of operations of over 70 years with a diversified product profile consisting

of Buses, Trucks, Light vehicles, Defence vehicles, Engines, Gensets, etc., with vehicle weight ranging

from 2.5T to 55T, catering to the LCV-GC, M&HCV-GC, LCV-PC and M&HCV-PC segments. Over the

years, ALL has become a synonymous name in the bus segment, wherein it is among the global top

five players in this segment. ALL is one of the leading players in domestic M&HCV segment with

strong market position through a variety of product offerings.

Execution Data

Target (Rs) 160

Stop loss (Rs) 124

Buying Range (Rs) CMP

Last Close Price (Rs) 134

% change Weekly 1.02

Weekly Oscillator Direction

13 WMA Upwards

21 WMA Upwards

50 WMA Upwards

RSI Buy Mode

MACD Buy Mode

ASHOKLEY

1

B P W E A L T H

Sector Outlook Neutral

Stock

BSE code 500477

NSE Symbol ASHOKLEY

Bloomberg AL IN

Reuters ASOK.BO

Key Data

Nifty 16,238

52WeekH/L(Rs) 143/49

O/s Shares (mn) 2936

Market Cap (Rs bn) 393.8

Face Value (Rs) 1

Average volume

3 months 1,87,60,440

6 months 2,38,97,270

1 year 3,50,35,020

Technical View (Weekly Chart)

1

4

2

3

2nd Feb ,

Buy


LEATHER AND LEATHER PRODUCTS

Execution Data

Target (Rs) 1900

Stop Loss (Rs) 1560





13 WMA Upwards

21 WMA Upwards

50 WMA Upwards

RSI Buy Mode

MACD Buy Mode

Technical View

1. The stock had earlier witnessed breakout from medium term falling trend line which is bullish

signal for medium term trend.

2. The stock has witnessed five week consolidation breakout which is bullish signal for short term

trend.

3. The stock has reversed strongly finding support at 21 WEMA which also coincides with falling

trend line support which indicates strong support for the stock.

4. RSI heading higher and has surpassed 60 levels which suggests strength and compliments bull-

ish view on price.

We recommend to BUY BATAINDIA at CMP for the target of 1900 with a stop loss of 1560 in

short term.


A strong financial risk profile characterized by zero debt, stable liquidity conditions and reli-

able debt coverage indicators

Over the past several years, BIL has remained debt free and has primarily utilized non-fund based

limits from banks. The company also has significant liquidity cushion with Rs. 1,000 crore of cash and

liquid investments as of March 2021. ICRA notes that the entire capital expenditure in past few years

has been made from internal accruals.

Healthy operational profile with strong brand equity and established distribution network

BIL has an established track record of 90 years and a pan-India presence. The company has a diver-

sified product portfolio and sells through an extensive retail and distributor network. It sells rubber,

canvas, leather and plastic footwear through 1,472 retail stores, including MBOs and 221-franchisee

stores.

BATAINDIA

2

B P W E A L T H

Sector Outlook Positive

Stock

BSE code 500043

NSE Symbol BATAINDIA

Bloomberg BATA IN

Reuters BATA.BO

Key Data

Nifty 16,238

52WeekH/L(Rs) 1736/1215

O/s Shares (mn) 129


Face Value (Rs) 5

Average volume

3 months 27,95,820

6 months 51,26,570

1 year 1,15,68,060

1 2

4

3

2nd Feb ,

Buy

DIESEL ENGINES

Technical View

1. The stock has registered breakout from the long term falling resistance trend line which is bullish

signal for medium term trend.



3. Recently stock has given breakout from Bullish Flag price pattern which is bullish signal for short

term trend.

4. RSI has formed bullish reversal pattern against price which is bullish signal and compliments

bullish view on price.

We recommend to BUY CUMMINSIND at CMP for the target of 1040 with a stop loss of 839 in

short term.


Levers in place for sustained demand in domestic market

Domestically, demand for power generation was strong, led by construction sector. However, lock-

down, following the second wave of the pandemic, derailed the recovery. Government’s focus on

infrastructure to kick start the economy will lead to sustained demand in domestic market for power

gen-sets. Data localisation policy will provide further impetus. In the industrials, mining continues to

do well. Railways will recover once it operates at capacity.

Experienced promoters and long-term cooperative relationship with the directors of Cummins

India Co., Ltd. (Cummins)

Promoters, given their experience of about 35 years in trading in diesel generators, and their spares

and service, helped set up a network of reputed customers across Maharashtra and Madhya

Pradesh, resulting in repeat orders .Benefits from the promoters' extensive experience in trading in

diesel engines, and their spares and service should continue.

Execution Data

Target (Rs) 1040

Stop loss (Rs) 839



% change weekly 5.69


13 WMA Upwards

21 WMA Upwards

50 WMA Upwards

RSI Buy Mode

MACD Buy Mode

CUMMINSIND

3

B P W E A L T H


Stock

BSE code 500480

NSE Symbol CUMMINSIND

Bloomberg KKC IN

Reuters CUMM.BO

Key Data

Nifty 16,238

52WeekH/L(Rs) 933/412

O/s Shares (mn) 277


Face Value (Rs) 2

Average volume

3 months 13,88,720

6 months 14,63,260

1 year 15,04,090


1

4

3

2

2nd Feb ,

Buy


ANIMAL FEED

Technical View

1. The stock has registered breakout from falling resistance trend line which is bullish signal for

medium term trend.



3. The stock has reversed strongly hitting up sloping trend line which is bullish signal for medium

term trend.

4. RSI has formed bullish reversal pattern against price which is bullish signal and compliments

bullish view on price.

We recommend to BUY GODREJIND at CMP for the target of 700 with a stop loss of 548 in

short term


Diverse business segments reduce dependence on single business

On a standalone basis, GIL’s business is structured into three major business divisions

(oleochemicals, finance and investments and estate management), while its investee entities have

interests in and leadership positions across diverse business areas (including property development,

oil palm plantation, animal feeds and agri-inputs, dairy, personal care and household care). Further,

GIL has recently announced expansion and diversification into housing finance and non-banking fi-

nance business. This reduces GIL’s dependence on a single business segment.

Leadership position in the domestic oleochemicals industry

The company is one of the market leaders in the domestic oleochemicals industry with presence in

various sub-segments (like fatty acids, fatty alcohols, glycerine and surfactants). GIL also caters to

export markets through this segment.

Execution Data

Target (Rs) 700

Stop loss (Rs) 548





13 WMA Upwards

21 WMA Upwards

50 WMA Upwards

RSI Buy Mode

MACD Buy Mode

GODREJIND

4

B P W E A L T H


Stock

BSE code 500164

NSE Symbol GODREJIND

Bloomberg GDSP IN

Reuters GODI.BO

Key Data

Nifty 16,238

52WeekH/L(Rs) 674/352

O/s Shares (mn) 337


Face Value (Rs) 1

Average volume

3 months 7,11,820

6 months 5,56,920

1 year 4,00,900

1

2

3

4

2nd Feb ,

Buy


COMPUTERS - SOFTWARE

Technical View

1. The stock has registered breakout from parallel channel with supportive volumes which is bullish

signal and increases the reliability of the breakout.

2. The stock has given multi week consolidation breakout which occurred at the 21 WEMA support

which is bullish signal for short term trend.

3. MACD is inching higher and has given bullish crossover after food amount of time which is bull-

ish signal and compliments bullish view on price.

We recommend to BUY HCLTECH at CMP for the target of 1250 with a stop loss of 980 in short

term


Presence across diverse verticals and service lines

HCL Technologies is the third-largest, listed Indian information technology (IT) services provider in

terms of revenue. It has established a diverse industry-vertical portfolio which has enabled it to better

mitigate the Covid-19 induced sector-specific slowdown in fiscal 2021. Financial services segment

contributed 21.1% of revenues during fiscal 2020, followed by manufacturing (20.7%), technology &

services (16.2%); other segments in life sciences & healthcare, retail & CPG and others contributed

the remaining 42.0%.

Healthy financial risk profile

HCL Tech has a healthy capital structure with comfortable debt to equity ratio of 0.11 and a large net

worth of Rs 59,913 crore as on June, 2021. Debt-protection metrics are robust, with interest coverage

ratio of 34.9 times. HCL Technologies is expected to invest in niche acquisitions to strengthen its

existing portfolio in the medium term and will be largely funded from its cash surplus and healthy ac-

cruals.

Execution Data

Target (Rs) 1250

Stop loss (Rs) 980





13 WMA Upwards

21 WMA Upwards

50 WMA Upwards

RSI Buy Mode

MACD Buy Mode

HCLTECH

5

B P W E A L T H


Stock

BSE code 532281

NSE Symbol HCLTECH

Bloomberg HCLT IN

Reuters HCLT.BO

Key Data

Nifty 16,238

52WeekH/L(Rs) 1073/678



Face Value (Rs) 2

Average volume

3 months 47,33,840

6 months 56,58,540

1 year 73,50,230

1

2

3

2nd Feb ,

Buy


HOUSING FINANCE

Technical View

1. The stock has reversed sharply hitting the demand zone 2380-2400 levels which is bullish signal

for medium term trend.



3. The stock has surpassed the supply zone of 2600-2620 levels which is bullish signal for short

term

4. RSI has formed bullish reversal pattern against price and has surpassed falling trend line which

is bullish signal and compliments bullish view on price.

We recommend to BUY HDFC at CMP for the target of 2980 with a stop loss of 2460 in short

term


Strong franchise and market position with a proven track record

HDFC is the largest housing finance company in India, with a strong franchise, wide geographical

presence and proven ability to grow while protecting its margins in an extremely competitive mort-

gage finance market. HDFC reported an overall growth of 10% in AUM (Asset Under Management)

to Rs. 574,136 crore as at June, 2021 from Rs 531,186 crore in the previous year, driven by 14%

growth in individual loan book, thereby increasing the share of individual loan book to 78%.

Stable asset quality indicators

Given HDFC’s focus on the prime salaried segment, its overall asset quality indicators remained

comfortable with Gross NPAs at 2.24% of the loan portfolio as at June 30, 2021. The overall collec-

tion efficiency ratio for individual loans has improved during the month of June 21 to pre-COVID lev-

els at 98.3% compared to 98.0% in March 2021. Given the challenges in the operating environment

due to Covid-19 related lockdown, there could be some increase in delinquencies, however HDFC

has strong credit quality indicators in place.

Execution Data

Target (Rs) 2980

Stop loss (Rs) 2460





13 WMA Upwards

21 WMA Upwards

50 WMA Upwards

RSI Buy Mode

MACD Buy Mode

HDFC

6

B P W E A L T H


Stock

BSE code 500010

NSE Symbol HDFC

Bloomberg HDFC IN

Reuters HDFC.BO

Key Data

Nifty 16,238

52WeekH/L(Rs) 2895/1623



Face Value (Rs) 2

Average volume

3 months 30,99,330

6 months 36,07,150

1 year 43,33,370

1

4

2

3

2nd Feb ,

Buy


PHARMACEUTICALS

Technical View

1. The stock has reversed finding support at rising trend line which is bullish signal for medium term

trend.



3. The volumes has increases on the advance days while decline on the down days which is bullish

signal and signal strength in trend.

4. RSI has reversed finding support at neutral zone (50 levels) and now heading higher which is

bullish signal and suggests strength in trend.

We recommend to BUY IPCALAB at CMP for the target of 2540 with a stop loss of 2020 in

short term


Well established position in domestic formulations, with presence in diverse segments

Ipca is among India's top 20 pharmaceutical companies. Product portfolio has been expanding in the

fast-growing therapeutic segments and includes cardiovascular (CVS), antidiabetic, and dermatology

drugs.

Authorized manufacturing facilities with focus on R&D

The company has 17 manufacturing plants across India which have accreditations from agencies

such as UK’s Medicine and Healthcare Products Regulatory Agency (MHRA), World Health Organi-

zation (WHO), European Directorate for the Quality of Medicines (EDQM), India’s Central Drugs

Standard Control Organization along with several country wise regulatory approvals. The wide infra-

structure of the company is well served with large pool of Intellectual Property knowhow supported by

large team of in-house scientists. The R&D expenditure of the company during FY 20 was Rs.101.04

crores (2.35% of total turnover) as against Rs.89.35 crore (2.50% of the turnover) in FY 19.

IPCALAB

7

B P W E A L T H


Stock

BSE code 524494

NSE Symbol IPCALAB

Bloomberg IPCA IN

Reuters IPCA.BO

Key Data

Nifty 16,238

52WeekH/L(Rs) 2455/1786

O/s Shares (mn) 127


Face Value (Rs) 2

Average volume

3 months 2,51,710

6 months 2,65,920

1 year 3,81,800

Execution Data

Target (Rs) 2540

Stop loss (Rs) 2020





13 WMA Upwards

21 WMA Upwards

50 WMA Upwards

RSI Buy Mode

MACD Buy Mode

1

2

3

4

Research Desk Tel: +91 22 61596406

Disclaimer Appendix

Institutional Sales Desk Tel: +91 22 61596403/04/05

Analyst (s) holding in the Stock : Nil

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FINRA and might not be an associated person of the BP Equities Pvt. Ltd. (Institutional Equities).

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Super 7 Picks - August 2021

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