Buy Cochin Shipyard on declines for Long Term

Company Background :

Cochin Shipyard Limited is an India-based company. The Company is focused on providing cater to clients engaged in the defence sector in India and clients engaged in the commercial sector. In addition to shipbuilding and ship repair, the Company offers marine engineering training. The Company’s docks include ship repair dock and shipbuilding dock. 

Ship repair dock is enables to accommodate vessels with a maximum capacity of 125,000 DWT. In addition, ship repair dock offers a flexible range of products such as, tankers, product carriers, bulk carriers, passenger vessels, high bollard pull tugs, and air defence ship. Shipbuilding dock can accommodate vessels with a maximum capacity of 110,000 DWT. The Company has built a variety of vessels ranging from bulk carriers, tankers and passengers ships to offshore support vessels and port crafts.

Stock Performance:

Company came with IPO this year and we can track performance for last 3 months

The scrip has touched a low of 196 and a high of 282.  The delivery volumes have increased indicating increased interest by investors.  Large deals indicate fund buying at lower levels.

3 months - 4.42%
1 month - minus 3.54%
2 weeks - minus 2.54%
1 week - minus 2.3

Recommendation :

After touching 580 the scrips has been trending down and is now at an inflection point.

Buy and add to your long term portfolio.  In the short term 520 will be a good resistance point.  Scrip can reach  Target price of 625 in next 3 months and 750 for 12 months holding in view of the quarter on quarter improvement in financials

Raghav
Equity Analyst

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

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Buy Coffee Day - A Lot will happen now !

Company Background :

Coffee Day Enterprises Limited primarily operates café coffee outlets in India and internationally. It operates through Coffee and Related Business, Integrated Multimodal Logistics, Financial Services, Leasing of Commercial Office Space, Hospitality Services, and Investment segments. The company operates a network of 1,682 café outlets under the Café Coffee Day, The Lounge, and The Square names in 241 cities; 537 Coffee Day Xpress kiosks in 22 cities in India; and 41,845 vending machines in corporate workplaces and hotels, as well as provides coffee beans and powder through its 415 Fresh and Ground Coffee retail stores. 

It also provides integrated logistics services, such as port handling, road and rail, logistics, container freight stations, and mining. In addition, the company develops and manages technology parks and related infrastructure for information technology (IT)/information technology enabled services (ITeS) enterprises in Global Village and Tech Bay, Karnataka. Further, it owns and operates three luxury resorts located in Chikmagalur, Bandipur, and Kabini, Karnataka under The Serai brand name; and offers wealth management, broking, portfolio management, and investment advisory services, as well as investments in other companies. Additionally, the company exports cured coffee to Europe, the Middle East, and Japan. Coffee Day Enterprises Limited was founded in 1993 and is headquartered in Bengaluru, India.

Stock Performance:

During the last 1 year the scrip has given following returns 

The scrip has touched a low of 196 and a high of 282.  The delivery volumes have increased indicating increased interest by investors.  Large deals indicates fund buying at lower levels.

1 year - 30.39%
6 months - 6.93%
3 months - 6.22%
1 month - 18.54%
1 week - minus 1.96

Recommendation :

Buy and add to your long term portfolio. The scrip may correct in the short term, and Rs.290 is the support level in case of a correction.  Target price of 325 in next 3 months and 400 for 18 months holding in view of the quarter on quarter improvement in financials

Investment Rationale :

Largest chain of coffee shops spread across India.  Robust income and margins ever growing consumer base.

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 - 9880080321

Sell - Vodafone Idea

Company Background :

Idea Cellular Limited is an India-based company engaged in wireless telecommunication services. The Company operates in two business segments: Mobility Services, which provides global system for mobile communication (GSM) based mobile and related telephony services, and International Long Distance (ILD), which provides international long distance services. It is a mobile telecommunications operator offering voice, data and other value added services (VAS). It provides GSM-based second-generation (2G) services in approximately 20 service areas in India. 

The Company offers third generation (3G) services in over 20 service areas. It offers 3G services in over 10 service areas pursuant to spectrum allocated to it and in remaining service areas through intra-circle roaming (ICR) arrangements with other mobile telecommunication service providers. It also offers fourth generation (4G) services in over 10 service areas through 1800-megahertz (MHz) spectrum.

Stock Performance:

During the last 1 year the scrip has given following returns 

12 months - -47%
6 months - -29%
3 months - -14%
1 month - -43%
1 week - -14%

Recommendation :

Sell this scrip as the sector is fiercely competitive with predatory pricing. 


Raghav
Equity Research Analyst

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

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

Ashok Leyland - Buy for longterm

Company Background :

Ashok Leyland Limited is a holding company. The Company is engaged in Commercial vehicles and related components. Through its subsidiaries, it is engaged in manufacturing and trading in Medium and Heavy Commercial Vehicle, Light Commercial Vehicles, Passenger vehicles, automotive aggregates, vehicle financing and engineering design services. 

It offers a range of 18 to 80-seater buses under categories, such as city application and electric buses. It offers a range of trucks, which include long haul trucks, mining and construction trucks, and distribution trucks. It designs, develops and manufactures defense vehicles for armed forces. It offers Light Vehicles, which include DOST, PARTNER, STiLE and MiTR. 

It offers power solutions for electric power generation, agricultural harvester combines, earth moving and construction equipment, and marine and other non-automotive applications. It has operations in India, Sri Lanka, Bangladesh, Mauritius, the Middle East and Africa.

Stock Performance:

During the last 1 year the scrip has given following returns 

6 months - 37%
3 months - 49%
1 month - 1%
1 week - minus 3.5%

Recommendation :

Buy and add to your long-term portfolio.  In the short term, Rs.150 will be a good resistance point.  Q3 sales will be muted and the share price may hover around 130 levels till early 2018.

Investor can look at TVS Motor in the automobile sector which could give superior returns over next 10 years 

Raghav
Equity Research Analyst

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

www.facebook.com/SmartInvestor3/
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Mail - intellinvestor@gmail.com

Buy Sail

Company Background :

Steel Authority of India Limited is a holding company. The Company is engaged in the manufacturing of flat products, such as hot rolled (HR) coils, HR plates, cold rolled (CR) coils, pipes and electric sheets, and long products, such as thermo mechanically treated (TMT) bars and wire rods. The Company's segments include Bhilai Steel Plant (BSP), Durgapur Steel Plant (DSP), Rourkela Steel Plant (RSP), Bokaro Steel Plant (BSL), IISCO Steel Plant (ISP), Alloy Steels Plant (ASP), Salem Steel Plant (SSP), VISL, POWER COMPANIES and OTHERS. 

It also offers rails, structurals, merchant products, electric resistance welded pipes, spiral welded pipes and silicon steel sheets. It operates and owns over five integrated steel plants at Bhilai, Durgapur, Bokaro, Rourkela and Burnpur, and approximately three special steel plants at Salem, Durgapur and Bhadravati. Its unit, Chandrapur Ferro-Alloy Plant (CFP), produces ferro-alloys. It also has SAIL Refractory Unit (SRU) at Bokaro

Recommendation :

Buy and add to your long term portfolio.  With the impending awarding of large construction projects by Government of India, company stands to gain.  With a sound balance sheet and a good management makes it a compelling buy.

This scrip has a great potential to move higher and higher in next 2 years.  Both the long term and short term investors will be rewarded well with consistent growth in profitability and bottom line. 

The steel sector has seen a sell out in the month of Feb 2019 and is now staging a recovery.  

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