India Cements - Buy

INDIA CEMENTS - BUY

Company Background :

The India Cements Limited is a cement company. The Company's brands include Sankar Super Power, Coromandel King and Raasi Gold. These brands are also available under sub brands, such as Shankar Shakti and Coromandel Super Power. The Company's plants are located in various locations in India, including Malkapur, Vishnupuram, Chilamkur, Yerraguntla, Vallur, Sankari, Dalavoi, Sankarnagar, Banswara and Parli.

The Company, based on customer requirement, also supplies its brands in High-density polyethylene (HDPE), Paper and Laminated packing. It produces both the variants viz Blended Cement, as well as Ordinary Portland Cement under different grades.

The Company's subsidiaries include ICL Securities Ltd., ICL Financial Services Ltd., ICL International Ltd., Industrial Chemicals & Monomers Ltd., Trishul Concrete Products Ltd., PT. Coromandel Mineral Resources, Trinetra Cement Ltd., Coromandel Mineral Pte Ltd., Coromandel Electric Company Ltd. and India Cements Infrastructures Ltd.

Stock Performance :

 During the last year it has doubled from its bottom and technically looking extremely bullish

Future Outlook :

All Cements stocks are doing very well post Union Budget where there is a visible push for infra projects.

Our Recommendation : BUY

We are expecting the stock to scale new highs. Buy on declines and hold for a target price of Rs.250 holding period of 6 months.

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No.24 Pattamal Plaza
3rd Cross Kammanahalli
BANGALORE 560084

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Infosys - Avoid

Company Background :

Infosys Limited is engaged in consulting, technology, outsourcing and next-generation services.

The Company, along with its subsidiaries, provides business information technology services comprising :-

application development and maintenance,
independent validation, infrastructure management,
engineering services comprising product engineering and life cycle solutions and business process management;
consulting and systems integration services comprising consulting,
enterprise solutions,
systems integration and advanced technologies;
products, business platforms and solutions to accelerate intellectual property-led innovation,
including Finacle, its banking solution, and offerings in the areas of Analytics, Cloud and Digital Transformation.

Its segments are Financial Services and Insurance (FSI), Manufacturing and Hi-tech (MFG & Hi-TECH), Energy & utilities, Communication and Services (ECS), Retail, Consumer packaged goods and Logistics (RCL), and Life Sciences and Healthcare (LSH).

Stock Performance :
Not going anywhere - gets support around INR 900 and struggling to get past 1050

Future Outlook :
IT / Software Services industry is under cloud many blue chips are languishing and for the next year or 18 Months we do not expect any spectacular movement

Avoid

Smart Investor -
Equity Research

No.24 Pattamal Plaza
3rd Cross Kammanahalli
BANGALORE 560084

Whatsapp -09880080321
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Lupin Limited - Avoid

I was attracted last year by impressive product range and fundamentals. Alas i bought around 1625 and exited around 1540 after holding for few months !

Company Background :-
Lupin Limited is a pharmaceutical company. The Company is engaged in producing, developing and marketing a range of branded and generic formulations, biotechnology products and active pharmaceutical ingredients (APIs) across the world.

The Company offers products in the cardiovascular, diabetology, asthma, pediatrics, central nervous system, gastro-intestinal, anti-infectives and non-steroidal anti-inflammatory drug therapy areas. The Company also offers solutions in the anti-tuberculosis (anti-TB) and cephalosporins therapy areas.

The Company along with its subsidiaries has manufacturing locations spread across India, Japan, the United States, Mexico and Brazil. It has a pipeline of biosimilars addressing therapies, such as oncology, anti-inflammatory, anti-viral, rheumatoid arthritis, endocrinology, diabetes, ophthalmology and women's health.

The Company's products include Antara, Methergine, Methylphenidate, Glumetza, Gluconorm, Tonact, Rcinex and Ramistar, among others.

For more info about company - www.lupinpharmaceuticals.com

Stock Performance :
Not going anywhere - gets support around INR 1400 and struggling to get past 1600

Future Outlook :
Pharma industry is under cloun many blue chips are languishing and for the next year or 18 Months we do not expect any spectacular movement

Avoid

Demonitisation Effect - Sectors / Stocks to Avoid

The ‘demon’ in demonetization is in the beginning. On November 8, Indian Prime Minister Narendra Modi announced in a broadcast to the nation that Rs500 ($7.40) and Rs1,000 currency notes would no longer be recognized legally as currency. “Great,” said Corporate India, economic commentators, foreign investors, international think tanks and global rating agencies. “Masterstroke,” echoed the Confederation of Indian Industry (CII).

The aim behind the government’s action was to combat tax cheating, counterfeiting and corruption. Eliminating large denominations makes it harder to hide large amounts of cash. Modi noted that the move complements the country’s swachh bharat abhiyan (Clean India campaign). “For years, this country has felt that corruption, black money and terrorism are festering sores, holding us back in the race towards development,” he said. “To break the grip of corruption and black money, we have decided that the currency notes presently in use will no longer be legal tender from midnight tonight.” Added Finance Minister Arun Jaitley: “The goal of this is to clean transactions, [to] clean money.”

Sectors that will be impacted by this move where Cash is king and people tend to stack up for essentials and not luxuries.

1.  Travel and Tourism Sector - Thomas Cook, Cox & Kings, Mahindra Holidays, Wonderla, PVR
2. Automotive - Tata Motors, Ashok Leyland, Maruti, Hero Honda, TVS Motors
3. Tyres - Balkrishna Industries, Ceat, JK Tyres
4. Clothes - Arvind, Century Textiles, Nandan Denim, Bombay Dyeing, ABFRL, Pantaloon Retail
5. Realty - DLF, Prestige, Purvankara, 
6. Cement - ACC, Gujarat Ambuja, Shree Cement

Turn around in these scrips can be expected only after April 2017 which is 5 months away from now.

Datamatics - Buy

Company Background :
Datamatics Global Services Limited is a provider of information technology and business process outsourcing, and consulting services. The Company provides business aligned next-generation solutions to a range of industry verticals for various enterprises across the world. It provides varied business processes, including finance and accounting (F&A), enterprise document management, enterprise content management, collaboration and portals, business intelligence data warehousing (BIDW) and analytics, big data, application development, support and testing, engineering and embedded solutions, and mobility. 

It offers a range of independent testing and validation services. It also provides customized application management services. Its next-generation solutions and the services span across a section of industries, including banking and finance, healthcare, insurance, manufacturing, market research, publishing, retail and international organization

Stock Performance :
During the last 1 year the scrip has gained more than 80% from the lows of Rs.44 it has reached a 52 week high of 74 recently

During the last 6 months scrip turned bullish the scrip has gained more than 82% from the lows of Rs.44 it has reached a 52 week high of Rs.72 

During the last 3 months has been good gained more than 20% from the lows of Rs.51 it raced to Rs.63

One month - High 65 and Low of Rs.54 currently hovering around peak levels.

Industry Outlook : 
IT services industry with specific on contract staffing has gained traction with the entry of Team Lease.  The recently concluded IPO of Quess Corporation by more than 145 times bears testimony.  with re rating of the sector we expect exciting times ahead.

Our Recommendation :
For long term returns looking for capital protection and decent appreciation buy around current levels and hold for 12 months for a target price of Rs.121 giving almost 100% return.

Raghav

Smart Investor -
Equity Research

No.24 Pattamal Plaza
3rd Cross Kammanahalli
BANGALORE 560084

Whatsapp -09880080321
Smart Investor