1
EQUITY
Latest 1 Day P/E* P/B*
SENSEX 31,449.0 0.8 23.2 2.9
NIFTY 9,794.2 0.9 22.9 2.9
CNXMIDCAP 17,853.7 2.8 31.3 2.2
14-Aug-17
*Source: Bloomberg
NET INFLOWS (Rs. Crs.) 11-Aug-17
NET MTD YTD
FII (1829.4) (7416.0) 33252.2
MF** (38.4) 19971.3 30080.4
*YTD From January till date **As on 10-Aug-17
16 August 2017
Sushil Financial Services Private Limited Member BSE : SEBI Regn.No. INB/F010982338 | NSE : SEBI Regn.No.INB/F230607435. Regd. Office : 12, Homji Street, Fort, Mumbai 400 001. Phone: +91 22 40936000 Fax: +91 22 22665758 Email : [email protected]
Please refer to important disclosures at the end of the report For private Circulation Only.
15-Aug-17
Latest Points % Chg.
NIKKEI 225 * 19756.8 3.5 0.0
HANG SENG * 27267.7 92.8 0.3
DOWJONES 21999.0 5.3 0.0
NASDAQ 6333.0 (7.2) (0.1)
SGX NIFTY FUT* 9810.0 14.0 0.1
INFY 15.5 0.0 0.1
HDFC BANK 95.6 0.4 0.4
ICICI BANK 9.0 0.1 0.9
TATA MOTORS 29.5 (0.3) (1.0)
WIPRO 6.1 0.0 0.2
DR REDDY 30.8 0.1 0.2
* At 08:20 a.m. IST on 16-Aug-17
WORLD INDICES & INDIAN ADRs (US$)
COMMODITIES 14-Aug-17
Latest Points % Chg.
GOLD 1273.4 1.8 0.1
CRUDE OIL (WTI) 47.8 0.2 0.4
CRUDE OIL (Brent) 51.1 0.3 0.5
FII ACTIVITIES IN DERIVATIVES 14-Aug-17
FII Net Buy (Rs.
Crs)
Open
Interest
Ch. in Open
Int. (DOD)Index Futures (452.6) 23960.6 (1.4)
Index Options 1556.6 86551.6 2.7
Stock Futures 571.3 56138.9 2.2
Stock Options (2.5) 9776.8 2.9
14-Aug-17
Closing % Chg.
Dollar Index 93.9 0.00
Rs. / $ 64.1 (0.03)
Rs. / EURO 75.6 0.19
Rs. / UK Sterling 82.6 (0.75)
EXCHANGE RATE
G.SEC. YIELD 14-Aug-17
Yield (%)
GS CG2025 8.2% 6.52
US 10 Year Gsec 2.27
KEY OVERNIGHT DEVELOPMENTS
Wall Street ended little changed on Tuesday as declines in Home Depot and
other retailers following results offset upbeat US retail sales data. Asian
shares were mostly higher in early Wednesday trade as investors digested
earnings releases from regional corporates and a resurgent dollar
MUST KNOW….
Suzlon Energy surges as company turns profitable in Q1 (Rs.17, +14%)
Britannia(#) aims to increase distribution footprint post-GST (Rs.4173, +2%)
DLF (##) zooms as promoters may sign rental arm stake sale deal with GIC this month (Rs.181, +17%)
RBL Bank (#) raises Rs.1680 crore via preferential sale of 3.26 cr shares (Rs.497, +1%)
Dredging Corp shares surge aftr strong operational nos in Q1 (Rs.575, +5%)
RCom soars post NCLT approval to Brookfield deal, merger with Aircel (Rs.24, +16%)
Expect increased movement in deal pipeline to continue: eClerx (#) (Rs.1285, +2%)
Cipla (#) jumps after management's FY18 outlook (Rs.570, +5%)
Hope to achieve 20-25% growth in overall sales in FY18: Godawari Power (Rs.118, -8%)
L&T Technology Services (#) bets big on E&RD; expects FY18 revenue above industry estimates (Rs.730, 0%)
Vinati Organics rises on buyback approval (Rs.1011, +4%)
Guiding double digit growth on India front: Cox & Kings (Rs.270, +1%)
Titan sees up to 30% rise in sales with stores expansion (Rs.630, +4%)
Reliance Industries (##), BP to submit revised investment plan for KG-D6 gas finds (Rs.1573, +2%)
IDBI Bank posts Q1 net loss of Rs.853 cr; asset quality worsens (Rs.52, -1%)
Eveready Industries turns to Ujala for its LED vertical (Rs.321, +1%)
Getting ready to focus more on increasing our revenues, says Zee Media (Rs.36, 0%)
Grasim Q1 profit grows 8% to Rs.347 cr, topline up 13% (Rs.1109, +5%)
Zydus (##) settles patent case over Aptalis' drug Canasa (Rs.485, +1%)
Don't expect big increase in gas prices this year: Indraprastha Gas (##) (Rs.1295, +6%)
Tata Power Q1 PAT at Rs.221 cr; operating profit jumps 12% (Rs.80, +4%)
Apollo Hospitals (#) Q1 net profit dips 51% at Rs.35.21 cr (Rs.1192, -2%)
ITDC Q1 net profit jumps two-fold at Rs.18.75 cr (Rs.483, +9%)
Expect to see normal business Q3 onwards: SH Kelkar & Co (Rs.258, +3%)
Natco(#) shares gain on getting final approval for kidney drug (Rs.739, +5%)
2
Corporate Announcements & Financial Scoreboard Suzlon Energy surges as company turns profitable in Q1 (Rs.17, +14%)
Shares of Suzlon Energy rose as the company turned profitable in the quarter ended Jun 2017. The
company has reported net profit of Rs.63.7 crore in the quarter ended Jun 2017 (Q1FY18) against the loss
of Rs.257 crore, in the same quarter last fiscal. Revenue of the company increased 62.5% at Rs.2,676 crore
versus Rs.1,646 crore. The board approved the issuance of redeemable non-convertible debentures (NCDs)
to the extent of Rs.900 crore on private placement basis in one or more tranches for replacement of
existing debt subject to approval of shareholder in the ensuing annual general meeting of the company.
The company's 22nd AGM will be held on Sept 22, 2017. The securities issue committee of the company
has at its meeting held on Aug 12, 2017 approved allotment of 2,89,74,999 equity shares of Rs.2 each on
conversion of 7438 USD 546,916,000 step-up convertible bonds due Jul 2019 of USD 1,000 each at a
conversion price of Rs.15.46 per equity share with a fixed rate of exchange on conversion of Rs.60.225 to
USD 1.
Britannia (#) aims to increase distribution footprint post-GST (Rs.4173, +2%)
After facing initial GST hiccups, FMCG major Britannia is looking at increasing its distribution footprint and
winning market share from local players. The company, which witnessed de-stocking in trade channels due
to migration to GST, said the new tax regime has brought a level playing field. "Our key strategic focus area
is to increase distribution footprint, grow rural and win (market) share from local players," Britannia said in
a presentation to the analysts. It said it would target local/regional players in specific category/geography.
The company also said its other key focus areas include entering one new geography every year and enter
new product categories as it aspired to be a total food company. Last year, Britannia, whose main business
segments are bakery and dairy, had entered into a joint venture (JV) agreement with Greece's Chipita SA to
manufacture and sell ready-to-eat filled croissants. Currently, the work is underway to establish operations
of the JV. It is also scouting for profitable growth opportunities, especially in the bakery segment, to
strengthen its position as a leading food company in the country. In order to increase its international
business, the company said it is also evaluating entry through local manufacturing in high potential
markets, which are currently not accessible through exports routes due to high trade barriers. Britannia is
present in more than 70 countries, its key geographies being West Asia, Africa, Americas, Asia Pacific and
SAARC. Britannia is also looking at driving premiumisation through innovation and attain cost leadership
through efficiencies and wastage reduction. Britannia Industries had reported a 1.40% decline in
consolidated net profit to Rs.216.12 crore for the Jun quarter, impacted by the GST roll-out and subdued
growth in international business. The company had posted a net profit of Rs.219.21 crore in the Apr-Jun
period a year ago. Its net sales were up 6.41% to Rs.2,300.93 crore as against Rs.2,162.16 crore in the
corresponding period of the previous fiscal.
DLF (##) zooms as promoters may sign rental arm stake sale deal with GIC this month (Rs.181, +17%)
DLF shares rallied on likely deal between the company's promoters and Singapore's sovereign wealth fund
GIC for rental arm stake sale soon. In Oct 2015, DLF had announced that its promoters would sell their
entire stake in DLF Cyber City Developers Ltd (DCCDL), which holds the bulk of the commercial assets of the
group. The promoters had in March this year entered into an exclusivity pact with GIC to negotiate on this
transaction. Both the parties are likely to sign definitive agreement by end of this month, PTI said quoting
unnamed sources. Sources had earlier said the deal is likely to be valued at around Rs.12,000-13,000 crore.
The promoters would infuse a large portion of proceeds from this proposed deal into DLF, which in turn
3
would use this amount to cut its net debt that has reached nearly Rs.26,000 crore. In a conference call with
analysts, DLF's Senior Executive Director (Finance) Saurabh Chawla said the proposed transactions is at the
"fag end of the process" and hoped that the deal would be concluded in the near future. Chawla said after
the agreement between the two parties, GIC would approach the Competition Commission of India (CCI)
for approval, while DLF will have to seek shareholders nod. He said the CCI approval could come by early
November. DLF is expected to achieve a rental income of over Rs.3,000 crore in the current fiscal, of which
about Rs.2,600 crore pertains to the DCCDL. Meanwhile, the realty major's profit in Q1FY18 fell sharply by
58.4% year-on-year to Rs.109 crore but rest of earnings remained good with revenue rising 9.7% to
Rs.2,047.7 crore compared with same quarter last year. Operating profit grew by 21.3% to Rs.903.1 crore
and margin expanded by 420 basis points to 44.1% in Q1.
RBL Bank (#) raises Rs.1680 crore via preferential sale of 3.26 cr shares (Rs.497, +1%)
RBL Bank (former Ratnakar Bank) announced its capital infusion of Rs.1,680 crore by selling 3.26 crore
shares for Rs.515 per share on a preferential basis to marquee investors. The bank issued 32,621,354 (or
3.26 crore) equity shares on a preferential basis at a price of Rs.515 per share, adding Rs.16,799,997,310
(Rs.1,680 crore) to the paid-up capital, RBL bank said in a statement. The small private sector lender had
received approval for the capital raise from its Board of Directors on Jul 7, 2017 followed by approval from
its shareholders at its annual general meeting held on Aug 04, 2017. Some of the key investors who have
participated in this capital raise are CDC Group, Multiples Alternate Asset Management, HDFC Standard Life
Insurance Company, Global IVY Ventures, ICICI Lombard General Insurance Company and Steadview
Capital. Motilal Oswal Investment Advisors Private acted as advisors to the transaction. Vishwavir Ahuja,
MD and CEO, RBL Bank said, "RBL Bank is well poised to capitalise on the various growth opportunities
available through both the organic as well as inorganic route. This infusion will give us the desired flexibility
and enable us to maintain our growth momentum." Srini Nagarajan, Managing Director and Head of South
Asia, CDC Group Plc said, "We strongly support RBL Bank’s strategy to expand and provide a range of
financial services to under-served parts of the market. CDC’s further equity investment is made on the back
of the bank’s strong performance since our original investment in 2014 and will continue to support the
bank’s commitment to financial inclusion, as well as the financing of SMEs and agribusiness."
Dredging Corporation shares surge after strong operational numbers in Q1 (Rs.575, +5%)
Dredging Corporation India shares rallied after the state-run reported strong operational numbers in the
quarter ended Jun 2017. Net profit during the quarter fell by 2.5% year-on-year to Rs.3.9 crore but revenue
grew by 10.8% to Rs.157.9 crore compared with same quarter last year. Operating profit jumped 26.7% to
Rs.37.3 crore and margin expanded 290 basis points to 23.6% compared with corresponding quarter of
previous fiscal.
RCom soars post NCLT approval to Brookfield deal, merger with Aircel (Rs.24, +16%)
Reliance Communications surged after National Company Law Tribunal has passed order, allowing Aircel-
Reliance Communications merger and Brookfield tower sale. The tribunal on Monday overruled objections
of Bharti Infratel, GTL and Ericcson. Further, according to a media report, the deal will help the company
reduce its debt by Rs.11,000 crore. The company was in the news recently after the debt situation at the
company raised questions. Bonds of the company have taken a hit on global exchanges, while back home,
the shares also took a hit. Having said that, the buzz of rejig plans, including asset monetisation plans,
boosted the stock.
4
Expect increased movement in deal pipeline to continue: eClerx (#) (Rs.1285, +2%)
eClerx Services reported a steady quarter. In an interview to media, Rohitash Gupta, CFO of the company
spoke about the results and his outlook for the company. Margins contracted due to wage hikes, he said.
Last couple of quarters, we have seen year-on-year increase in our deal pipeline every quarter and we hope
this movement will continue, he added. We are well placed to unleash the global delivery model, said
Gupta.
Cipla (#) jumps after management's FY18 outlook (Rs.570, +5%)
Cipla shares rallied after the company's outlook for current financial year 2017-18 post Q1 earnings.
Company's chairman Y K Hamied on last Fri said even as the industry faces several hurdles, the
government's new drug policy will boost the pharma sector. He is hopeful that the company will generate
sustainable and profitable topline growth in FY18. "In the US, we are eyeing over 20 ANDA filings,
strengthening the execution of key launches and building our specialty focus in respiratory and CNS," said
Cipla managing director and CEO Umang Vohra. The company filed three products in Q1FY18 and filing is
expected to intensity in the remaining part of the fiscal with a target to file 25 ANDAs in the full year. Cipla
posted 21% rise in net profit to Rs.409 crore on a year-on-year basis for the first quarter ended Jun 30
reigning in expenses and enhancing operational efficiency. Revenues declined 3% to Rs.3525 crore while
EBITDA margins stood at 18.3% gaining 6% YoY. "Despite the impact of GST on India business, we had a
very healthy quarter from an operational perspective," Umang Vohra said, adding the quarter saw EBITDA
margins expanding to over 18% driven by strong focus on enhancing operational efficiency and control on
spends.
Hope to achieve 20-25% growth in overall sales in FY18: Godawari Power (Rs.118, -8%)
In an interview to media, Dinesh Gandhi, Director of Godawari Power & Ispat spoke about the results and
his outlook for the company. Market conditions have improved in the last one year time and that is
reflecting in our numbers, said Gandhi. We hope to achieve 20-25% growth in overall sales in the current
year, he added. On debt front, he said on consolidated level it is close to Rs.2,200 crore including Rs.200
crore of working capital debt. We hope to reduce debt by about Rs.100 crore in current year, he added.
L&T Technology Services (#) bets big on E&RD; expects FY18 revenue above industry estimates (Rs.730,
0%)
In times of uncertainty caused by the rising protectionist attitude in large markets such as US and UK, L&T
Technology Services is betting big on its engineering and R&D services, CEO Keshab Panda told Neha
Alawadhi. The company also expects a double digit revenue growth in constant currency terms for FY18,
slightly above industry estimates.
Vinati Organics rises on buyback approval (Rs.1011, +4%)
Shares of Vinati Organics rose as the company has approved the buyback of its shares. The company at its
meeting held on Aug 11 has approved a buyback proposal for purchase of up to 2,00,000 equity shares of
Rs.2 each (0.39%), from all the shareholders of the company on a proportionate basis through the tender
offer route at a price of Rs.1200 per equity share, aggregating to approximately Rs.24,00,00,000. The
company's Q1 net profit was down 12.8% at Rs.31.1 crore versus Rs.35.7 crore, in a year ago period.
Revenue of the company was up 13.6% at Rs.196.9 crore versus Rs.173.3 crore. In an interview to media,
Vinati Saraf Mutreja, ED of Vinati Organics discussed the company's Q1 performance. Q1 is historically low
5
on volumes, said Saraf. Have positive outlook for the future, she added. Saraf also expects revenue and
operating profit growth of 15% in FY18. She also sees a 10- 15% growth in Iso Butyl Benzene (IBB). Seeing
opportunities to increase market share by 15%, said Saraf.
Guiding double digit growth on India front: Cox & Kings (Rs.270, +1%)
Cox & Kings reported a steady set of Q1 earnings. In an interview to media, Peter Kerkar, Group CEO of the
company discussed more about the company's performance. India story is still particularly strong for us.
With goods and services tax (GST) coming in, things seem to have settled down slightly and we are guiding
double digit growth on the India front, he said. We see phenomenal growth on the topline for Meininger.
We will double Meininger room capacity in next 12-13 months, he added. Speaking on education business,
he said, it is a stable business, we have added on some more capacity which should roll in next year.
Titan sees up to 30% rise in sales with stores expansion (Rs.630, +4%)
Titan Co, India's biggest listed jeweller, expects its jewellery sales to rise by 20-30% in 2017/18 fiscal year
ending Mar, as it plans to add more than two dozen retail stores to boost its presence in small towns, a
senior company official said. "We are planning to add 25 to 30 stores on franchise basis this year on top of
existing around 250 stores," Sandeep Kulhalli, senior vice president, retail and marketing at Titan, told
Reuters. The company's total income in Jun quarter surged 43% to Rs.40.50 bn ($632.6 mn) from a year ago
due to higher jewellery sales during annual Hindu and Jain holy festival of Akshaya Tritiya. The
government's efforts to bring transparency in bullion trading by making large cash transactions illegal and
mandating tax code for such deals is also helping the company, he said. "Earlier people were buying from
small jewellers as they were not asking for PAN card or accepting cash. With the government restrictions,
they don't see any benefit in buying from small jewellers," Kulhalli said.
Reliance Industries (##), BP to submit revised investment plan for KG-D6 gas finds (Rs.1573, +2%)
Reliance Industries and its partner BP Plc of UK will by year end submit a revised investment plan for the
four satellite gas discoveries in the flagging KG-D6 block by integrating their development with two other
nearby finds. Senior executives in the joint venture said four deepsea satellite gas discoveries -- D—2, 6, 19
and 22 are planned to be developed together with D29 and D30 finds in the Krishna Godavari basin of KG-
D6 block. The four satellites and the other two finds (D29 and D30), R-Series and MJ gas discoveries, are
the ones on which RIL and BP had in mid-June this year announced investing Rs.40,000 crore to reserve the
flagging production from KG-D6 block. They said development of the six satellite finds are being taken up
together while D-34 or R-Series and D-55 (MJ) would have separate development plans. The government
had in 2012 approved a USD 1.529 bn plan to produce 10.36 mn standard cubic meters per day of gas from
four satellite fields of block KG-DWN-98/3 (KG—D6) by 2016-17. The four fields have 617 bn cubic feet of
reserves and can produce gas for eight years. However, the companies did not begin the investment citing
uncertainty over gas pricing. Now that the government has allowed a higher gas price of USD 5.56 per mn
British thermal unit for yet-to-be- developed gas finds in difficult areas like the deepsea, RIL and BP have
decided to take up their development. This rate is comparable with USD 2.48 per mmBtu for currently
producing fields. The executives said these four finds are now been clubbed together with D29 and D30
discoveries, which had been held up over conformity tests. They however did not give investment numbers
saying a slump in global energy prices and services market will only see lesser amount of money being
spent. RIL-BP combine do not plan to alter the USD 3.18 bn investment plan for D-34 or R-Series gas field in
the same block, which was approved in Aug 2013. About 12.9 mmscmd of gas for 13 years can be produced
from from D-34 discovery, which is estimated to hold recoverable reserves of 1.4 trn cubic feet. A separate
6
development plan for the MJ find would be submitted by mid-2018, they said. RIL has so far made 19 gas
discoveries in the KG—D6 block. Of these, D—1 and D—3 —— the largest among the lot —— were brought
into production from Apr, 2009, but output has fallen sharply from 54 mmscmd in March, 2010, to 3-4
mmscmd. MJ is the only other field that was put to production. Together, the three fields today produce
6.4 mmscmd. Other discoveries have either been surrendered or taken away by the government for not
meeting timelines for beginning production.
IDBI Bank posts Q1 net loss of Rs.853 cr; asset quality worsens (Rs.52, -1%)
Public sector bank IDBI Bank reported a net loss of Rs.853 crore against Rs.241 crore profit posted during
the same period last year. The lender posted a fall of 18% in its net interest income at Rs.1,402 crore
against Rs.1,706 crore year on year. Net interest income is the difference between interest gained and
interest expended. On the asset quality front, gross and net non-performing assets (NPAs) soared. Gross
NPAs came in at Rs.50,173 crore against Rs.44,752 crore in the previous quarter. The ratio came in at
24.1% against 21.2%. Meanwhile, the net NPAs were reported at Rs.29,580 crore against Rs.25,206 crore.
The net NPA ratio came in at 15.8% against 13.21%.
SJVN records highest ever generation of power in Q1 (Rs.31, 0%)
SJVN reported a muted performance for Q1 of FY18. In an interview to media, RN Misra, Chairman and
Managing Director of SJVN spoke about the results and his outlook for the company. The company has
recorded highest ever generation of power, 3,498 mn units, during this quarter, he said. The total revenue
is lower by Rs.300 crore due to tariff regulation, he added. Speaking about receivables, he said, compared
to last year June 2016, they are almost half this year. On Nepal project, Misra said that the investment
decision is already there and we are expecting the first package to be awarded in a month.
Eveready Industries turns to Ujala for its LED vertical (Rs.321, +1%)
Battery maker Eveready Industries is betting on the government's Ujala scheme to expand its LED lighting
business with an aim to break into the big league in India. The company's annual report for 2016-17 is a
pointer to its aggressive plans of growing LED lighting operations by foraying into professional lighting B2B
(business to business) with the launch of indoor and outdoor luminaires. "We are also proactively bidding
for government supply under the Ujala scheme," Eveready Industries Managing Director Amritanshu
Khaitan said. During the year, the company had executed government orders worth Rs.46.50 crore for LED
lights. The 110-year old company, which commands over 50% market share in dry cell battery business,
said it has set up separate sales and distribution channel to cater to electrical outlets and B2B customers.
On outlook, the battery maker plans to develop its own line of professional and infrastructural lighting
solutions for office, industries, showrooms and road lighting. Eveready Industries is set to focus on
widening the electrical outlet network in the next two years through which it intends to capture growth in
the lighting business. Net sales from the LED category in 2016-17 stood at Rs.299.17 crore, which is
expected to be a significant turnover growth driver in years to come. The products in the segment include
LED bulbs, tubelight batten sets, indoor luminaire range, LED street lights, LED flood lights and digital LED
battery operated and solar lanterns.
Getting ready to focus more on increasing our revenues, says Zee Media (Rs.36, 0%)
Zee Media Corporation reported a steady set of numbers and margins improved but operating costs were
higher. In an interview to media, Sumit Kapoor, CFO of the company spoke about the results and his
outlook going forward. Post DNA demerger, our debt is sub of Rs.100 crore, so we are not very high on the
7
debt, said Kapoor. However, we are in the process of arranging for debts for the radio (Reliance Broadcast
Networks) acquisition and we have tied up couple of facilities wherein the upfront fees and other related
charges have come as part of finance cost. It's not a regular feature but has affected our finance cost in the
quarter, he added. "From here on we are now getting ready to focus more on increasing our revenues,"
said Kapoor. Kapoor expects radio acquisition to be complete anytime in ongoing quarter. On BTVi
acquisition news front, he said we are in an open market, deals do keep coming in for us but we have
already acquired radio business. It's time for us to consolidate that business and look in for operational
synergies before we look in for other deals.
Grasim Q1 profit grows 8% to Rs.347 cr, topline up 13% (Rs.1109, +5%)
Grasim Industries standalone net profit grew by 8.2% year-on-year to Rs.347.2 crore in quarter ended Jun
2017. Revenue during the quarter increased 12.7% to Rs.2,986.5 crore compared with Rs.2,649 crore in
same quarter last fiscal. EBITDA (earnings before interest, tax, depreciation and amortisation) rose 5.2%
year-on-year to Rs.555.3 crore but margin contracted 140 basis points to 20.3% in Apr-Jun quarter.
Zydus (##) settles patent case over Aptalis' drug Canasa (Rs.485, +1%)
Zydus group firm Cadila Healthcare said patent litigation relating to Aptalis' drug Canasa used for treatment
of ulcerative colitis has been settled. As a result of the settlement, the company's "US subsidiary, Zydus
Pharmaceuticals (USA) Inc, will be able to market its generic version of Canasa in the United States
beginning on Jun 13, 2019, or earlier under certain circumstances," Cadila Healthcare said in a statement.
Zydus Cadila had earlier received tentative approval from the United States Food and Drug Administration
(USFDA) to market its generic version of Canasa (mesalamine suppository 1 g), it added. Canasa is indicated
to treat mildly to moderately active ulcerative colitis. The company's product will be produced at the
group's topical plant at Ahmedabad, Cadila Healthcare said.
Don't expect big increase in gas prices this year: Indraprastha Gas (##) (Rs.1295, +6%)
Indraprastha Gas reported strong margins in the first quarter. In an interview to media, ES Ranganathan,
MD of the company discussed the Q1 performance. Nearly 3,000-4,000 private cars and 1,000 taxis getting
converted into compressed natural gas (CNG) per month, said Ranganathan. He expects challenges in
industrial segment going ahead because of natural gas not being in goods and services tax (GST). However,
he expects volume growth (ex-Gurugram) of 10-11% going ahead. On tariff front, he said we are not
expecting any big increase in the gas cost going forward in this year.
Tata Power Q1 PAT below estimates at Rs.221 cr; operating profit jumps 12% (Rs.80, +4%)
Tata Power reported 68% increase in the Jun quarter net profit at Rs.221 crore against Rs.131.2 crore
posted during the same period last year. The consolidated revenues grew 2% at Rs.6,969 crore against
Rs.6,838 crore year on year. On an operating level, the earnings before interest, taxes, depreciation and
amortisation grew 12% to Rs.1,831 crore against Rs.1,635 crore posted during the same quarter last year.
Meanwhile, the operating margin was reported at 26.3%.
Apollo Hospitals (#) Q1 net profit dips 51% at Rs.35.21 cr (Rs.1192, -2%)
Healthcare major Apollo Hospitals Enterprise reported a 51.21% dip in standalone net profit at Rs.35.21
crore, mainly on account of rise in expenditure for the first quarter ended Jun 30, 2017. The company had
reported a net profit of Rs.72.17 crore for the corresponding period of previous fiscal, Apollo Hospitals
Enterprise said in a BSE filing. However, standalone income from operations of the company rose to
8
Rs.1,684.46 crore for the quarter under consideration as against Rs.1,465.43 crore for the same period year
ago. The company's board also took note of resignations of Habibullah Badsha, Raj Kumar Menon and
Rafeeque Ahamed as independent directors with effect from today, Apollo Hospitals said. The board has
approved the appointment of BVR Mohan Reddy as an additional director with effect from Aug 14, 2017 to
hold office as an independent director, it added.
ITDC Q1 net profit jumps two-fold at Rs.18.75 cr (Rs.483, +9%)
State-run India Tourism Development Corporation (ITDC) reported a two-fold jump in net profit at Rs.18.75
crore for the first quarter ended Jun 30, 2017. The company had posted a net profit of Rs.9.41 crore during
the same period of previous fiscal, ITDC said in a BSE filing. Total income during the quarter under review
stood at Rs.96.19 crore as against Rs.91.41 crore in the year-ago period, up 5.22%. The company's revenue
from the hotel division during the period was Rs.63.77 crore as compared to Rs.66.59 crore in the
corresponding quarter of last fiscal. The state-run firm is looking to divest or offload its stake in all hotels
run by it except Ashok and Samrat hotels in the national capital. The company said the process of
divestment is going on. The hotels in which the divestment is under process include, Hotel Pondicherry
Ashok, Hotel Jaipur Ashok, Hotel Kalinga Ashok and Hotel Lalitha Mahal Palace, among others. The
government is looking at leasing ITDC hotels with management right to private companies as part of its
efforts to monetise the properties owned by the state-run firm.
Expect to see normal business Q3 onwards: SH Kelkar & Co (Rs.258, +3%)
SH Kelkar and Company has reported a subdued quarter with a decline in revenues. In an interview to
media, Kedar Vaze, Group CEO of the company spoke about the results and his outlook going forward.
There will be some carry over impact of goods and services tax (GST) de-stocking in Q2 and from Q3
onwards we will see normal business, he said. There will be a rebound on the demand of the product, he
added. Speaking about utilising the cash on books, he said, we will continue to look at possible joint
venture (JV), acquisitions.
Natco (#) shares gain on getting final approval for kidney drug (Rs.739, +5%)
Natco Pharma said it got final approval for generic Lanthanum Carbonate chewable tablets of 500 mg
(base), 750 mg (base), and 1000 mg (base) dosage forms. Lanthanum Carbonate is a generic equivalent of
Shire's Fosrenol Chewable Tablets and reduces the serum phosphate in patients with End Stage Renal
Disease (ESRD). Patients with ESRD typically have high blood phosphate levels that sucks calicium from
bone leading to rickets and other bone diseases. Natco said the product, a first generic, will be launched
shortly in the USA market. Fosrenol chewable tablets had US sales of USD 122.4 mn as per the year moving
annual total (MAT) ended Jun. Natco and Lupin entered into an agreement on Sept 1, 2008 to jointly
commercialise generic equivalents of Fosrenol chewable tablets.
Expect 50-60% growth in FY18, says Man Industries (#) (Rs.87, +7%)
Man Industries (India) reported a steady quarter. In an interview to media, RC Mansukhani, Chairman of
the company spoke about the results and his outlook going ahead. Full year guidance is 50-60% growth;
this means we will cross Rs.1,700 crore in FY18, said Mansukhani. He further said that the current order
book is at Rs.1,800 crore.
9
Information Of Bulk Deals – 14th Aug 2017 On BSE
Scrip Name Name Of Client BUY (B) / SELL (S)
Quantity Shares
Trade Price/ W Avg. Price
Bellacasa Indu Jain S 60,000 120.15
Capmanfi Mansukhbhai Mohanbhai Rupapara S 19,000 5.2
Sctl Jhaveri Trading And Investment Pvt Ltd S 30,000 47.75
Stampede Lopa Saumil Bhavnagari S 1,397,057 7.37
Stampede Mahavir Industries Limited B 1,371,000 6.96
Taalent Indian Seamless Enterprises Ltd S 25,000 141.5
Taalent Vishkul Leather Garment Pvt Ltd B 25,000 141.5
Tirin Jupiter Management Company Private Limited S 50,813 23.76
Veerenrgy Arpita Ilesh Patel B 67,093 34.34
Information Of Bulk Deals – 14th Aug 2017 On NSE
Scrip name Name of Client BUY (B) / SELL (S)
Quantity Shares
Trade Price/ W Avg. Price
Aarvee Denims & Exports Deg Deutsche Investitionsentwicklyng Sgess S 149627 34.15
Akash Infra-Projects Ltd. Mansi Munjal Patel B 97000 79
Akash Infra-Projects Ltd. Vishwamurte Trad Invest Pe Ltd S 81000 79
Ganges Securities Limited Zaki Abbas Nasser B 65000 59.47
Prakash Industries Ltd. Bnp Paribas Arbitrage B 990366 107.05
Sintex Plastics Tech Ltd Mv Scif Mauritius S 3930753 101.93
Vadivarhe Sp Chem Ltd Mangal Savitri Bizcon Pvt Ltd B 72000 113.29
Winsome Yarns Limited Capston Capital Partners B 600000 1.95
Winsome Yarns Limited Ramapati Consultants Private Limited S 490000 1.95
10
Disclosures Under SEBI (Prohibition Of Insider Trading) Regulations, 2015
Company Name Name of Acquirer / Seller Securities Held pre Transaction
Securities Acquired / Disposed Number Value Transaction Type
Securities held post Transaction
Period
HDFC Ltd Kankane Abhishek 8717 (0.00) 25 44693 Disposal 8692 (0.00) 31/07/2017
HDFC Ltd . Kankane Abhishek 8692 (0.00) 50 89278 Disposal 8642 (0.00) 01/08/2017
HDFC Ltd . Kankane Abhishek 8642 (0.00) 25 43404 Disposal 8617 (0.00) 09/08/2017
HDFC Ltd Ashish Choudhury 3600 (0.00) 250 445638 Disposal 3350 (0.00) 31/07/2017
HDFC Ltd . Vyas Deepak L 10813 (0.00) 1,900 3231292 Disposal 8913 (0.00) 11/08/2017
HDFC Ltd Himmat Singh Bhayal 1415 (0.00) 1,400 2448544 Disposal 15 (0.00) 10/08/2017
HDFC Ltd Sunil Gupta 3000 (-) 3,000 396540 Disposal (-) 05/07/2017
Crisil Ltd. Rahul Prithiani 2621 (-) 1,696 3130555.56 Disposal 925 (-) 09/08/2017
Dabur India Ltd. Sunil Duggal 4588680 (0.26) 54,845 16783118 Acquisition 4643525 (0.26) 11/08/2017
Kotak Mahindra Bank Ltd. Dipak Gupta 1330356 (0.07) 5,000 4962482.00 Disposal 1325356 (0.07) 11/08/2017
Itc Ltd. Abhishek Kumar 57740 (0.00) 11,000 2988020.00 Disposal 46740 (0.00) 10/08/2017
Itc Ltd. J P Rao 33000 (0.00) 33,000 9010980.00 Disposal 0 (0.00) 10/08/2017
Itc Ltd. Kasturi Iyengar 42000 (0.00) 2,000 547000.00 Disposal 40000 (0.00) 10/08/2017
Itc Ltd. Kasturi Iyengar 40000 (0.00) 2,000 543000.00 Disposal 38000 (0.00) 11/08/2017
Itc Ltd. Manish Kumar 70890 (0.00) 36,000 9794300.00 Disposal 34890 (0.00) 09/08/2017
Itc Ltd. Nakul Anand 1007475 (0.01) 2,00,000 54390000.00 Disposal 807475 (0.01) 11/08/2017
Itc Ltd. Prantik Ray 12880 (0.00) 12,880 35214578.00 Disposal 0 (0.00) 10/08/2017
Itc Ltd. Rajkumar Rathinavelu 20000 (0.00) 20,000 5507193.00 Disposal 0 (0.00) 08/08/2017
Itc Ltd. Ramasamy Sambasivam Annadurai 10000 (0.00) 4,000 1090120.00 Disposal 6000 (0.00) 09/08/2017
Itc Ltd. Rohit Vishal Gupta 204515 (0.00) 81,150 22208840.00 Disposal 123365 (0.00) 10/08/2017
Itc Ltd. Suresh Ramamurthi 50280 (0.00) 15,000 4089600.00 Disposal 35280 (0.00) 10/08/2017
Itc Ltd. Subhashish Chakrabarty 11190 (0.00) 5,000 1369550.00 Disposal 6190 (0.00) 10/08/2017
Itc Ltd. Koushik Choudhury 32000 (0.00) 1,000 292350.00 Disposal 31000 (0.00) 28/07/2017
Modison Metals Ltd.-$ Modison Copper Pvt Ltd 96918 (0.30) 4,525 249819.64 Acquisition 101443 (0.31) 11/08/2017
Modison Metals Ltd.-$ Rakesh Shyamvir Singh 10000 (0.03) 2,000 107531 Acquisition 12000 (0.04) 11/08/2017
Gruh Finance Ltd. Sm Palia 195000 (0.05) 5,000 2492974 Disposal 190000 (0.05) 03/08/2017
Natco Pharma Ltd. Kantamani Ratna Kumar 49250 (0.03) 26,750 19119245.15 Acquisition 76000 (0.04) 11/08/2017
11
Freshtrop Fruits Ltd. Ashok V Motiani 1732389 (14.26) 10,000 938521 Acquisition 1742389 (14.34) 11/08/2017
Linc Pen & Plastics Ltd.-$ Divya Jalan 3300 (0.02) 1,000 248299 Acquisition 4300 (0.03) 11/08/2017
Icici Bank Ltd. Raghav Singhal 6564 (0.00) 6,564 1912000 Disposal (-) 10/08/2017
Icici Bank Ltd. Anindya Banerjee 1100 (0.00) 1,100 332970 Disposal (-) 02/08/2017
Icici Bank Ltd. Anindya Banerjee 6000 (0.00) 6,000 1706375 Disposal (-) 11/08/2017
Icici Bank Ltd. Sumit Sanghai 15000 (0.00) 5,000 1435000 Disposal 10000 (0.00) 10/08/2017
Indusind Bank Ltd. Mahesh Singh Baghel 1340 (-) 1,340 1474000 Disposal Nil (0.00) 10/03/2017
Indusind Bank Ltd. R.Uppily 990 (-) 990 1573110 Disposal Nil (0.00) 27/07/2017
Indusind Bank Ltd. Shiladitya Sen 1858 (-) 778 927182 Disposal 1080 (0.00) 25/08/2016
Indusind Bank Ltd. Srinivas Kappaganti 1715 (-) 200 285754 Disposal 1515 (0.00) 11/04/2017
Indusind Bank Ltd. Srinivas Kappaganti 1515 (-) 400 570932 Disposal 1115 (0.00) 12/04/2017
Indusind Bank Ltd. Srinivas Kappaganti 1115 (-) 300 424683 Disposal 815 (0.00) 24/05/2017
Indusind Bank Ltd. Shiladitya Sen 510 (-) 12 13635 Disposal 498 (0.00) 11/07/2016
Mro-Tek Realty Ltd Umiya Holding Pvt Ltd 5884434 (31.49) 6,165 367388 Acquisition 5890599 (31.52) 14/08/2017
Yes Bank Ltd. Parag Gorakshakar 2200 (-) 200 349800 Disposal 2000 (-) 11/08/2017
Yes Bank Ltd. Sumit Gupta 484500 (0.11) 200 345831 Disposal 484300 (0.11) 10/08/2017
Yes Bank Ltd. Asheesh Maroo 37000 (0.01) 6,000 10890000 Disposal 31000 (0.01) 31/07/2017
Capital First Ltd. Amitosh Misra 28250 (0.02) 1,250 947200 Disposal 27000 (0.02) 19/07/2017
Capital First Ltd. E Narayanan 17000 (0.01) 500 396610 Disposal 16500 (0.01) 07/08/2017
Capital First Ltd. Reshma Narang 3500 (-) 2,500 1906428.60 Disposal 1000 (-) 20/07/2017
Career Point Ltd. Pramod Maheshwari 1604924 (8.85) 25,699 2539389 Acquisition 1630623 (8.99) 11/08/2017
Anisha Impex Ltd Sunil Kumar Malik 6570100 (39.98) 20,000 235000 Acquisition 6590100 (40.10) 12/08/2017
Sps Finquest Ltd Kalpana Pramod Shah 48300 (1.07) 8,000 9.76 Lakhs Acquisition 56300 (1.25) 14/08/2017
Gulf Oil Lubricants India Ltd Gulf Oil International (Mauritius) Inc 35171787 (70.78) 3,47,437 280939793.46 Acquisition 35519224 (71.48) 11/08/2017
K.C.P.Ltd. V R K Grandsons Investments P Ltd 5553232 (4.31) 800 83136 Disposal 5470096 (-) 07/08/2017
K.C.P.Ltd. V R K Grandsons Investments P Ltd (-) 700 73192 Disposal 5469396 (-) 07/08/2017
K.C.P.Ltd. V R K Grandsons Investments P Ltd (-) 8,800 893904 Disposal 5460596 (4.24) 08/08/2017
12
Rating Scale This is a guide to the rating system used by our Institutional Research Team. Our rating system comprises of six rating categories, with a corresponding risk rating.
Risk Rating Risk Description Predictability of Earnings / Dividends; Price Volatility
Low Risk High predictability/ Low volatility
Medium Risk Moderate predictability / volatility
High Risk Low predictability/ High volatility
Total Expected Return Matrix Rating Low Risk Medium Risk High Risk
Buy Over 15 % Over 20% Over 25%
Accumulate 10 % to 15 % 15% to 20% 20% to 25%
Hold 0% to 10 % 0% to 15% 0% to 20%
Sell Negative Returns Negative Returns Negative Returns
Neutral Not Applicable Not Applicable Not Applicable
Not Rated Not Applicable Not Applicable Not Applicable
Please Note
stocks; we have enhanced our return criteria for such stocks by five %age points.
“Desk Research Call” is based on the publicly available information on the companies we find interesting and are quoting at attractive valuations. While we do not claim that we have compiled information based on our meeting with the management, we have taken enough care to ensure that the content of the report is reliable. Although we have christened the report as “Desk Research Calls” (DRC), we intend to release regular updates on the company as is done in our other rated calls.
For any information or suggestion, please contact the below mentioned…
Nishita Shah ([email protected])
Sushil Financial Services Private Limited Member BSE: SEBI Regn.No. INB/F010982338 | Member NSE: SEBI Regn.No.INB/F230607435.
Office: 12, Homji Street, Fort, Mumbai 400 001. Phone +91 22 4093 6000 Fax +91 22 2266 5758
“Research Analyst – SEBI Registration No. INH000000867”
Disclaimer
This report has been furnished to you for your general information only and should not be reproduced, re-circulated, published in any media,
website or otherwise, in any form or manner, in part or as a whole, without the express consent in writing of Sushil Financial Services Private
Limited. This Research Report is meant solely for use by the original recipient to whom it is sent and is not for circulation. Any unauthorized use,
disclosure or public dissemination or copying of information (either whole or partial) contained herein is prohibited.
This Report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or
needs of individual clients. The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or
construed to be neither advice/offer for the purpose of purchase or sale of any securities mentioned herein. Past performance is not a guide for
future performance, future returns are not guaranteed. Opinions expressed herein are subject to change without notice. Investor should rely
on information/data arising out of their own investigations. Investors are advised to seek independent professional advice and arrive at an
informed trading/investment decision before executing any trades or making any investments. The price and value of the investments referred
to in this material and the income from them may go down as well as up, and investor may realize losses on any investments. This Report has
been prepared on the basis of publicly available information, internally developed data and other sources believed by us to be reliable. Sushil
13
Financial Services Private Limited or its directors, employees, affiliates or representatives do not assume any responsibility for, or warrant the
accuracy, completeness, adequacy and reliability of such information / opinions / views. None of the directors, employees, affiliates or
representatives of company shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages/loss etc
whatsoever from the information/opinions/views contained in this Report and investors are requested to use the information contained at
their risk. We do not undertake to advise you as to any change of our views expressed in this Report.
Sushil Financial Services Private Limited (SFSPL) and its connected companies, and their respective Directors, Officers and employees or their
relative, may have a long or short position in the subject companies mentioned in the report and it may not be construed as potential conflict
of interest with respect to any recommendation and related information and opinions. Reports based on technical and derivative analysis
center on studying charts company’s price movement, outstanding positions and trading volume, as opposed to focusing on a company’s
fundamentals and, as such, may not match with a report on a company’s fundamental analysis. SFPSL has different business segments/Divisions
with independent research separated by Chinese walls catering to different set of customers having various objectives, risk profiles, investment
horizon, etc. and therefore may at times have different contrary views on stocks sector and markets. Research Report may differ between
SFSPL’s RAs on account of differences in research methodology, personal judgment and difference in time horizons for which recommendations
are made. User should keep this risk in mind and not hold - SFSPL, its employees and associates responsible for any losses, damages of any type
whatsoever.
This Report is not intended to be a complete statement or summary of the securities, market or developments referred to in this document.
SFSPL or its affiliates or employees are under no obligation to update the information. SFSPL or its affiliates or employees shall not be in any
way responsible and liable for any loss or damage that may arise to any person from any inadvertent error in the information contained in this
report.
SFSPL or its affiliates and/or its employees may have financial interest in the subject companies. SFSPL or its affiliates and/or employees may
have 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.
SFSPL or its associates or its Research Analyst have not received any compensation or other benefits from the subject companies or third party
in connection with the research report. SFSPL/its Associates/ Research Analyst/ his Relatives may have any other material conflict of interest at
the time of publication of the research report
SFSPL/its Associates/ Research Analyst/ his Relatives have not managed or co-managed public offering of securities, have not received
compensation for investment banking or merchant banking or brokerage services, have not received any compensation for product or services
other than investment banking or merchant banking or brokerage services from the subject companies in the last twelve months.
There are no material disciplinary action that been taken by any regulatory authority impacting equity research analysis activities.
Top Related