Buy Greenply

Company Background :

Greenply Industries Limited is an interior infrastructure company. The Company is engaged in the business of manufacturing plywood and allied products, medium density fiberboards (MDF) and allied products through its factories at various locations. The Company's segments include Plywood & Allied Products and Medium Density Fibre Boards & Allied Products. The Plywood & Allied Products segment is engaged in the business of manufacturing and trading of Plywood, block boards, veneer, doors, and other wood panel products through its wholesale and retail network. 

The Medium Density Fibre Boards & Allied Products segment is engaged in the business of manufacturing of Medium Density Fiberboards and other allied products through its wholesale and retail network. The Company offers a portfolio of residential and commercial products comprising plywood and block boards, MDF, wood floors, flush doors, and decorative veneers. The Company offers Wood floors under the brand name Green Floormax.

Financial Performance :

Greenply Industries Ltd (Greenply) is India’s leading plywood and medium density fibreboard (MDF) manufacturer with market share of 26% (organized plywood) and 30% (MDF) in India. The company has a presence in over 300 cities across 21 states serviced through a well-entrenched distribution network of 2,497 dealers and authorized stockists. We estimate revenue CAGR of 19.1% over FY18E-20E. This will be led by increasing urbanization and rising spend on home improvement. 

The company is planning to increase its plywood capacity by 40% and MDF capacity by 100% to meet the increasing demand. The entire capacity is to be operational from FY19E onwards. Thus, we expect the company to be ready to take advantage of the market share gains post the implementation of GST. We expect EBITDA CAGR of 20.4% over FY18E-20E on the back of increasing mix of value added products. We see PAT CAGR of 16.4% over FY18E-20E.

Stock Performance:

During the last 1 year the scrip has given following returns 

The scrip has touched a low of 190 and a high of 401.  

1 year - minus 33.12%
6 months - minus 46.63%
3 months - minus 12.22%
1 month - 1.48%
1 week - minus 5%

Recommendation :

Buy and add to your long term portfolio.  In the short term 220 will be a good resistance point.  The scrip may correct in the short term, and Rs.180 is the support level in case of a correction.  Hold long term for a Target price of 325 in next 12 months and 420 for 18 months holding in view of the quarter on quarter improvement in financials


Raghav
Equity Research Analyst

Smart Investor 
Equity Research
No.24 Pattamal Plaza
3rd Cross Kammanahalli
BANGALORE 560084

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Mail - intellinvestor@gmail.com
Whatsapp - 90083-77660 

Buy Arvind on declines

Company Background :

Arvind Limited is a textile company. The Company's principal products/services are finished fabrics and garments. Its segments are Textiles; Brands and Retail; Real Estate, and Others. The Textiles segment includes fabric, yarn and garments. The Brands and Retail segment includes retailing of branded garments, apparels and fabrics. The Real Estate segment includes real estate development. 

The Others segment includes electronics, technical textile, construction, e-commerce and project activity. It also manufactures cotton shirting, denim, knits and bottom weights (Khakis) fabrics, and jeans and shirts garments. The Company, through its subsidiary, Arvind Lifestyle Brands Limited, markets branded apparel and licenses international brands in India. Its brands portfolio includes international brands, such as Arrow, US Polo, Izod, Elle and Cherokee. It also operates MEGAMART apparel value retail stores. It also has presence in telecom business directly and through joint venture companies.

Products / Market share

We are a fashion powerhouse that is also building new age homes;
We are a global leader in apparel manufacturing that is also transforming water management; 
A denim pioneer that is a trailblazer in advanced materials;
A wearable technology manufacturer that is also delivering state-of-the-art engineering solutions.

That’s where a US$ 1.5 billion dollar conglomerate stands today.
Where we aren’t just driven by bottom lines and profits, but able and willing to drive social impact;
Where our CSR and sustainability initiatives are slowly but surely changing lives and making a difference to thousands.  From being just a textile company, it has come a long way and are striving every day to create opportunities where none exist.

Today, the fabric made by Arvind can go around the earth 6 times over.  2 pieces of apparel are sold by an Arvind managed brand, every second in India.  Arvind owns 22 global patents for environmental solutions, and is the largest fire protection fabric producer in the country;  Also managing 15 global apparel brands of the likes of Tommy Hilfiger, US Polo, CK, GAP, Nautica, and Sephora.

Company has 42,000 employees across verticals ranging from retail to advanced materials, environmental and social solutions to real estate, apparel to agriculture, believe that at Arvind, the possibilities are endless. It just depends on how you fashion them. It is this philosophy that has helped us touch people’s lives through innovative and pioneering solutions since 1931. And it is this philosophy that continues to drive us to change tomorrow for the better.

Source : www.arvind.com

Stock Performance:

During the last 1 year the scrip has given following returns 

The scrip has touched a low of 355 and a high of 478.  The delivery volumes have increased indicating increased interest by investors.  Large deals indicates fund buying at lower levels.

1 year - 1%
6 months - 3.63%
3 months - 14.22%
1 month - minus 15.48%
1 week - minus 2%

Recommendation :

Buy and add to your long term portfolio.  In the short term 380 will be a good resistance point.  The scrip may correct in the short term, and Rs.390 is the support level in case of a correction.  Target price of 450 in next 3 months and 500 for 18 months holding in view of the quarter on quarter improvement in financials

Investment Rationale :

Largest manufacturer of denim fabric India.  Robust income and margins ever growing consumer base.

Raghav
Equty Research Analyst

Smart Investor 
Equity Research
No.24 Pattamal Plaza
3rd Cross Kammanahalli
BANGALORE 560084

www.facebook.com/SmartInvestor3/
www.twitter.com/smartinvestor
Mail - intellinvestor@gmail.com
Whatsapp - 90083-77660 

Buy Tata Elxsi

Company Background :

Tata Elxsi is an Indian design company and a part of the Tata Group. It provides design and technology services for product engineering and solutions across industries including broadcast, communications, and automotive. It has various business units like broadcast, transport, communication, industrial design, and medical.

It has design studios, development centers, and offices worldwide. Tata Elxsi is a listed company and headquartered in Bangalore, India. Apart from Bangalore, it also has offices in Mumbai, Pune, Chennai, Trivandrum, Kolkata and Chandigarh.

Financial Performance :

Tata Elxsi Ltd., incorporated in the year 1989, is a Mid Cap company (having a market cap of Rs 8450.29 Crore) operating in Information Technology sector.

Tata Elxsi Ltd. key Products/Revenue Segments include Software Development Charges which contributed Rs 1201.01 Crore to Sales Value (97.40 % of Total Sales) and Traded Goods which contributed Rs 32.03 Crore to Sales Value (2.59 % of Total Sales)for the year ending 31-Mar-2017.

For the quarter ended 31-03-2018, the company has reported a Standalone sales of Rs 375.38 Crore, up 8.64 % from last quarter Sales of Rs 345.54 Crore and up 15.13 % from last year same quarter Sales of Rs 326.05 Crore Company has reported net profit after tax of Rs 70.29 Crore in latest quarter.

Stock Performance:

During the last 1 year the scrip has given following returns

1 year - 59%
3 months - 32%
1 month - 16%
1 week - 5%

Recommendation :

Buy on declines and add to your long term portfolio.  Do not plan to sell unless you have better investment options.

Raghav
Equity Analyst

Smart Investor 
Equity Research
No.24 Pattamal Plaza
3rd Cross Kammanahalli
BANGALORE 560084

www.facebook.com/SmartInvestor3/
www.twitter.com/smartinvestor
Mail - intellinvestor@gmail.com
Whatsapp - 9880080321

FSL Buy on declines and hold !

Company Background :

Firstsource Solutions Limited is a provider of a range of business process management services across the customer life cycle delivered through transaction processing. The Company's segments include Banking, Financial Services and Insurance and Non-Banking, Financial Services and Insurance. Its geographic segments has 48 global centres as of FY17 including USA and Canada, UK, India and Rest of the world. It is involved in information technology-enabled services, including business process outsourcing. The verticals contributed 32.2%, 31.8% and 35.8% respectively to the company’s revenue during the financial year 2017.

Its product portfolio includes productized solutions in Customer Interaction Analytics (First Customer Intelligence), Web Chat (First Chat), Process Automation (First Smartomation), Workforce Management (First WF Suite), Complaints Management (First Resolve) and First Digital. It works with both the payer and provider segments of the United States healthcare industry. The Company provides its services to a range of sectors, including healthcare, telecommunications and media, banking and insurance

Stock Performance:

During the last 1 year the scrip has given following returns

1 year - 97%
6 months - 62%
1 month - minus6%
1 week - 1.73%

Recommendation :

Buy on declines and add to your long term portfolio.  Do not plan to sell unless you have better investment options.

Raghav
Equity Analyst

Smart Investor
Equity Research
No.24 Pattamal Plaza
3rd Cross Kammanahalli
BANGALORE 560084

www.facebook.com/SmartInvestor3/
www.twitter.com/smartinvestor
Mail - intellinvestor@gmail.com
Whatsapp - 9880080321

Bharat Electronics Limited - Buy for long term

Company Background :
Bharat Electronics Limited is engaged in design, manufacture and supply of electronics products/systems for the defense requirements, as well as for nondefense markets. The Company's principal products/services include weapon systems, radar and fire control systems, and communication. Its defense products include defense communication; radars; naval systems; command, control, communications, computers, and intelligence systems; weapon systems; telecom and broadcast systems; electronic warfare; electro optics, and solar photovoltaic systems. 

Its non defense products include turnkey system solutions; civilian radars; e-governance systems, and homeland security. Its other range of products include electronic voting machines, communication equipment, radar warning receiver and casings. It offers electronic manufacturing services in areas of printed circuit board assembly and testing; precision machining and fabrication; opto electronics components and assemblies, and offsets, among others.

Stock Performance:
The company has made stock split from a face value of INR 10 to Re.1 during the year.

The scrip has touched a low of 135 and a high of 189.  The delivery volumes have increased indicating increased interest by investors.  Large deals indicates fund buying at lower levels.

During the last 1 year the scrip has given following returns 

12 months - minus 46.3%
3 months - minus 39%
1 month - minus 20%
1 week - minus 11.73%

Technicals :
Stock has traded lower than  100 day and 200 day moving average but lower than 20 day and 50 day moving average. This indicates the scrip is likely to go down further

Recommendation :
Buy and add to your long term portfolio.  In the short term 115 will be a good resistance point.  Buy on declines for a target price of 175 in next 18 months  holding in view of the improvement in financials

Raghav
Equty Research Analyst

Smart Investor 
Equity Research
No.24 Pattamal Plaza
3rd Cross Kammanahalli
BANGALORE 560084

www.facebook.com/SmartInvestor3/
www.twitter.com/smartinvestor
Mail - intellinvestor@gmail.com
Missed Call / SMS- 90083-77660