Weekly Markets Sentiment_19082017

Markets were up about 1.2% for the week. Sentiment has turned cautious if not negative. As expected, Nifty did show a good dead cat bounce for the week. However it failed to close above 9900 firmly. Cut short by a holiday and a long holiday weekend, markets managed to stay in the green for the week. The close could have been better but for the Infy saga. The fundamental news flow was the reason markets took a tanking on the last day. Street is nostalgic again with the Infosys board room war drama. October had seen Tata Group wage in a battle that dragged for months. This time it is the IT giant. Buyback of 13k crore was approved and Mcap of 22k+ was eroded.

Technically speaking, soured sentiment will have a fizzle out effect. Sell on rallies is the rumor. 9900 is pivotal resistance and 10k is a distant dream. Those trapped will wait and new entrants are likely to come in at a lower range. The recent sub 9700 lows are bound to be tested again. Sentiment is not bullish and bottom seems far away. 9500 has seen aggressive writing and should act as a base. It is crucial that Nifty defend its 50-DMA around 9800 for short-term balance.

Fundamentally speaking, after the recent fall, we are still expensive. Results were mix pack and not that great. Fund flows continue from the domestic investors. DII keeps pumping in the SIP and retail money. FII is a strong seller. Barring one odd bulk deals, they sold every single day to the tune of 1000cr! Time will tell who will have the last laugh but for now liquidity is gushing and supporting the market.

Globally, uncertainty continues to grip markets. White House drama held the US markets in the negative zone with Dow below 22k. The tensions of Korea are still clear and present. Markets there too have a liquidity support. Jobless claims in US came in at the lowest in a long time.

Sectors to watch for the next week – Pharma. Continue to bottom pick individual stocks, Nifty Pharma should find its bottom soon. Better be a buyer of the last 10% fall than the last 10% rise. Metals should continue to do well. World over metal prices are rising. Nifty Metal should hit a new high given the momentum. All other sectors are wait and watch. Sell on rise is the theme.

Morning Business News Round Up_August 18,2017

Morning Business News :

  • Quarterly headline inflation in first half to be between 2-3.5%: RBI
  • Govt mulls FDI norms easing in print media, construction, retail
  • Doubling of minimum wages to hit exports, jobs: AEPC
  • NPPA may lose power to fix drug prices in new policy
  • Govt extends GST return filing deadline to Aug 28
  • GTC puts land parcel on the block for third time
  • Economists expect GVA to grow higher at 6.3-6.5% in Q1FY18
  • After shell firms, govt looks to weed out defunct LLP firms
  • Mutual funds pip FIIs in net investments
  • Moody’s upgrades Asia steel industry outlook to stable from negative
  • Tata Global to introduce ready-to-drink green tea
  • Grant Thornton: PE funding up 48% to $1.22 billion in July
  • India hopes to shoot up in World Bank’s ‘ease of doing business’ ranking
  • Draft pharma policy dilutes powers of pricing regulator
  • Infra fund to start lending soon, close to finalising investments
  • Srei Infrastructure arm to hit capital markets to raise Rs. 1,800-2,000 crore
  • 18 PSBs among top 20 banks with highest gross NPA ratios: CARE
  • Taking aim at China, India tightens power grid, telecom rules
  • SBI planning IPOs of two regional rural banks in the next one year
  • South-west monsoon deficit could worsen farm distress
  • Govt unwilling to let PSU banks skip bond payments, says Fitch
  • Infosys board to consider first-ever share buyback on 19 August
  • Airtel to hold shareholders, creditors meet in September on Telenor merger deal

Image result for Airtel

  • Two-thirds of power utilities bullish on digitisation: Survey
  • India sees over 15% growth in foreign tourist arrivals
  • DLF-GIC deal for 40 pct stake in DLF rental arm enters final lap
  • Crackdown on shell companies: Sebi to take stock next month
  • Incomplete drought recovery may be the new normal
  • Revenue dept’s probes source of data on black money: Jaitley
  • Insurance cos lead primary market offering

Forthcoming SME IPO_Seven Hills beverages Ltd

SME IPO : Seven Hills Beverages Limited

Issue Opens 18-Aug-17
Issue Closes 23-Aug-17
Issue Price 26
Lot Size 4000
Issue Size 4.16 cr
Lead Manager Aryaman Financial Services Ltd
Registrar Bigshare Services Pvt Ltd
Platform NSE Emerge

Registered Office: Gat No. 206, Khatwad Phata, Vill-Pimpalnere, Tal. Dindori, Nashik – 422 004.

Corporate Office: 302 Divine Tej, Thatte Nagar, College Road, Nashik- 422 005.

Promoters :

  • Mr. Sandeep Palwe
  • Mr. Nayan Palwe
  • Mrs. Charushila Lathi

Profile:

We are engaged in the business of manufacturing packaged drinking water for Bisleri International Pvt. Ltd. We
operate as “Co-packers” for “Bisleri” wherein we manufacture the bottles at our plant in order to avoid any possible
contaminations and carry out the filling of purified water as well as final sealing and packaging. The water purification process is carried out in multiple stages to ensure that the water is free from all forms of bacteria and is in accordance with the process and standards of Bisleri International Pvt. Ltd and also BSI Manual namely IS 14543 : 2004 for Packaged Drinking Water.

Our manufacturing plant spread across almost 2 acres of owned land is located at Dondori, Nashik in the state of
Maharashtra. We have been augmenting the manufacturing capacities of this plant from time to time and the plant has a current installed capacity of 32,85,000 boxes (with each box consisting of 12 bottles each). This makes us a strong partner for “Bisleri” in meeting the requirements of packaged drinking water supply in Nashik and areas nearby such as Shirdi, Aurangabad etc.

Object of the Isuue :

  • Working Capital Requirements
  • Funding Expenditure for General Corporate Purposes

Financials :

 

16-17 15-16 14-15 13-14 12-13
total Assets 680.13 416.68 339.82 496.89 466.67
tottal reveue 873.39 674.84 692.09 569.83 605.68
PAT 137.09 -13.91 -11.29 -79.25 -82.76
DEBT 137.41 460.27 363.79 307.96 255.33

 

EPS : 9.49/share

P/e @ share issued: 2.74

RoNW : 43.29 %

Net Asset Value Per share : 8.49/share

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Morning Business News Round Up_August 17,2017

Morning Business News :

  • Tatas to scrap all ties with Mistry’s group, putting huge money at risk
  • Infosys board to consider share buyback on August 19
  • Cabinet approves CGST refund scheme
  • Cabinet clears India, Sweden MoU signing on IPR
  • Cairn moves court against capital gains tax order
  • Tata Motors now eyeing India’s EV market: Rajan
  • Wipro to manage Bangladesh telecom firm’s IT services
  • Trai proposes changes in MNP rules to curb request rejection
  • Cabinet approves new mechanism to quicken strategic disinvestment
  • Sebi eases rules for lenders buying stake in distressed companies
  • Govt forms panel to recast National Mineral Policy 2008
  • Centre extends anti-dumping duty on Chinese chemical import by 5 years
  • IDFC PE sells entire 24% stake in Seaways Shipping to promoters
  • Biocon withdraws applications to sell two cancer drugs in Europe
  • India-focused offshore funds, ETFs see inflow of $4.6 bn
  • Petronas keen to buy stake in IOC’s LNG terminal
  • Cabinet approves raising ₹9,020 cr for Long Term Irrigation Fund
  • NSE to introduce seamless corporate announcement filing mechanism

Image result for NSE

  • States take over Rs. 2.09 lakh cr DISCOM debt
  • Solar power sector may face capex pressure, robust capacity addition
  • Govt moves to disallow more of Reliance-BP-Niko’s KG-D6 cost
  • Aurobindo Pharma, Intas in race for Teva’s European assets
  • Banks pick old, smaller accounts to refer to NCLT
  • RBI to maintain ‘prolonged pause’ before next repo rate cut: HSBC
  • Thyssenkrupp says it has no timeline on Tata Steel joint venture deal
  • 42% Indians willing to pay premium for prompt customer service: Report
  • Farmers to get crop loans at subsidised 7 pct, Aadhaar link a must: RBI
  • Warren Buffett bids goodbye to General Electric; dumps all stake in the iconic company
  • Anti-dumping duty likely on a chemical from Canada, China, EU
  • Alibaba to help SMEs expand their business to global markets
  • Revenue dept’s probes source of data on black money: Jaitley
  • Sensex climbs 322 pts as geo-political tensions recede
  • Tata Power’s Q1 output recorded at 12.4 bn units

Morning Business News Round Up_August 16,2017

Morning Business News :

  • China’s debt is on a dangerous trajectory, warns IMF
  • Swiss party opposes black money pact with India
  • UK to seek ‘temporary customs union’ after Brexit
  • JioPhone to hit sector, erode revenues: Voda to DoT
  • Government slaps $264 million penalty on RIL, BP
  • Wilful defaulters owe Rs 92K cr to PSU banks
  • Corporate earnings hit fresh roadblocks in Q1
  • Debt assets swell 32% to Rs 11 lakh cr amid easing of rates
  • Google to pay Apple $3 bn to remain default search engine on iOS devices
  • State-run EESL to procure 10K electric cars for various ministries
  • PAN deactivation jolt for tax evaders in stock market
  • TVS Motor acquires 24% stake in online marketplace RentOnGo

Image result for RentOnGo

  • Gold imports jump over 2-fold to $12.35 bn in Apr-July
  • Tata Global Beverages to launch Himalayan mineral water in US
  • ONGC eyes doubling gas production in 5-6 years
  • Paper sector capacity expansion hit by pulp wood shortage
  • Insolvency resolution proceedings delay Lanco Infratech Q1 results
  • 18 lakh people, Rs. 1.75 lakh cr deposits under scrutiny: PM
  • IDBI Bank still a prisoner of bad loans as malaise deepens
  • Nearly 200 inactive LLPs face deregistration
  • NCLT admits Reliance Communications’s petition for Aircel merger
  • Sebi in talks with other regulators to streamline pricing of corporate bonds
  • Carmakers say policy U-turns putting India plans out of gear
  • India’s real GDP growth to average at 7.4% over 2017, 2018: Deutsche Bank
  • Investments key to ensure growth in the country: Subba Rao
  • Sick PSUs closure have gone very well: Arvind Panagariya
  • Trade deficit in India falls to $11.5 bn as exports rise 3.9 pct
  • Life insurers’ new biz premium up 47% to Rs 20,428-cr in July
  • Fuel demand up 1% in July to 15.8 mt
  • RIL, BP to submit revised plan for KG-D6 gas finds
  • Sebi steps up surveillance on money laundering activities

Weekly Markets Sentiment_12082017

Markets finally gave into the hands of the bears. Sentiment all of a sudden turned for the worse. Nifty cracked over 3.5% for the week. Sensex is down over 1400 points. For reasons one can think of this correction was coming. However the manner in which it has come is shocking for many. Midcap/Smallcap have take a beating that was not envisaged. Some of the names have fallen 15-20% in a week. Results seasons continue unwind. Banking space – BoB/SBI continue to bleed with no improvement in NPAs and slippages. In the auto space Tata Motors came out with disappointing numbers and got punished.

Technically we has mentioned 9900 as critical support. This broke effortlessly. 9800 broke as effortlessly and Nifty tested 9700. Put writers had to unwind a lot of positions. Call writing increased and now 10k becomes a hurdle – one that will not be crossed with ease. The intermediate bottom at 9450-9500 will be tested. A very short-term dead cat bounce or some consolidation can be expected.

Fundamentally speaking markets after this brutal fall is still overbought. This can be the starting of a deeper correction. Too early to call bottom but there is enough steam on the way down. SEBI order, N. Korea war, China etc are all excuses and post-facto events. At this juncture we are at a crossroads. Results are not supporting valuations and one will see its consequences.

Globally markets mirrored one another. Dow fell considerably before stabilizing on Friday. Global situation had always been soft. May be the August fallacy plays out and world over the markets fall another 3-5%. Geopolitical tensions are prevalent. They were earlier as well and are still today. The markets may have a reason to fall now.

As one would expect IT should do okay in this bloodbath. Pharma is on a new low – keep your eyes open for capitulation and pain to do some bottom fishing. Strongest sectors is the metals and commodity space. Watch for some of the front line names in that sector as they will lead the recovery. In the after math of this correction – remember – good quality will always bounce back.

Forthcoming IPO_Servotech Power Systems Ltd

Forth Comming SME IPO : Servotech Power Systems Limited

Issue Opens 9-Aug-17
Issue Closes 14-Aug-17
Issue Price Rs. 31/-
Issue Size 15.13 cr
Lot size 4000
Lead manager Sarthi Capital Advisors Pvt Ltd
Registrar Bigshare Services Pvt Ltd

Promoters : Mr. Raman Bhatia Mrs Sarika Bhatia

Registere Office : 806, Crown Heights, Hotel Crown Plaza, Sector 10, Rohini, New Delhi-110085.

Profile : Initially, our Company was manufacturing Inverters, UPS and Servo Stablizers under the brand name
“SERVOTECH”. We started production of LED products in the year 2011. We are selling LED products under
the brand “SAARA”. We manufacture energy efficient luminaries for residential, industrial, and commercial
applications. Our products include LED light bulbs, LED downlights, LED flood light, LED panel lights, LED
tube lights, LED bay lights, outdoor lights (street lights, floodlights).

Objects of the Issue:

  1. Meet Working Capital  requirements
  2. General Corporate Purpose
  3. Issue Expenses

Financials :

16-17 15-16 14-15 13-14 12-13
Total Assets 5918.49 4392.95 3236.64 1985.76 1587.94
Total Reveue 8320.95 5171.01 3218.36 3395.85 2634.25
PAT 505.84 117.2 81.21 83.58 34.36

Return on Net worth : 38.5 %

Net Asset Value Per Share :12.83

EPS : 4.94

P/E at which share issued : 6.28

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Forthcoming SME IPO_ Geekay Wires Limited

SME IPO : Geekay Wires Limited

Issue Opens 9-Aug-17
Issue Closes 14-Aug-17
Issue Price 33
Lot Size 4000
Issue Size 10.99 cr
Lead Manager Aryaman Financial Services Ltd
Registrar Bigshare Services Pvt  Ltd
Platform NSE Emerge

Promoters:

  • Ghanshyam Dass
  • Ashish Kandoi
  • Anuj Kandoi
  • Kandoi Industries India Private Limited

Profile:

We are backed by a strong infrastructural base, which is well equipped with latest technology, advance machines and equipments which assist us in maintaining the quality and quantity of wires. We have a strong focus on manufacturing process and have a full‐fledged quality testing laboratory and well qualified and experienced personnel. All raw‐materials and consumables are tested at various stages in manufacturing process as per stipulated standards to ensure good quality products which confirms to ISO standards.
Today with robust infrastructure & testing facilities we are in the preferred-vendor list of PGCIL and in many State Transmission & Distribution Companies, electrical contractors, corporate engaged in turnkey business of creating infrastructure for power transmission & distribution, cable & conductor manufacturing, etc. Our products are not only accepted in India but we have received accolades from overseas customers as well.

Object of the Issue:

  • Long term working capital requirement
  • General Corporate Purposes
  • Issue related expenses

Financials:

16-17 15-16 14-15 13-14 12-13
total Assets 6470.05 4273.37 4001.34 2935.9 2344.19
tottal reveue 6715.64 8105.6 6112.07 4024.73 2680.16
PAT 65.28 65.12 22.54 16.97 18.14
DEBT 5031.3 2298.42 1823.97 1898.38 1557.14

EPS : 1.31

P/E @ share issued : 25.19

RoNW : 9.73%

Net Asset Value Per share: 13.42

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Forthcoming SME IPO_Lexus Granito

SME IPO : Lexus Granito (India) Limited

Issue Opens 9-Aug-17
Issue Closes 11-Aug-17
Issue Price Band Rs. 41-45/-
Lot Size 3000
Issue Size 25.92 cr
Lead Manager Pantomath capital advisory Pvt Ltd
Registrar Bigshare Services Pvt. Ltd.
Platform NSE Emerge

Promoters:

  1. Nilesh Detroja
  2. Hitesh Detroja
  3. Anilkumar Detroja
  4. Pavan Blackrock Pvt. Ltd.

Profile: Our Company is engaged in manufacturing, trading and marketing of vitrified ceramic tiles and wall
tiles for the domestic and international markets. Till date we were outsourcing manufacturing of wall
tiles to third party manufacturers, however recently we have set up our own wall tiles manufacturing
unit at our existing facility thereby integrating our operations and strengthening our routes in the
industry. Our manufacturing facility is situated at Morbi, Gujarat and is spread over more than 4
hectares. Our manufacturing facility is well equipped with requisite plant and machineries and other
facilities. We also have an in-house laboratory, enabling the company to develop new colours, besides
facilitating conducting of tests and analysis of various products. Our quality system with respect to
manufacture of our products has been ISO 9001:2008 certified. Further we have also been issued
Certificate of Compliance by UK Certification & Inspection Ltd for our quality systems covering the
design, manufacture and final inspection of the products. We manufacture and market our products
under the brandname ―Lexus

Object:

  1. Working Capital Requirements
  2. General Corporate Purpose

Financials:

16-17 15-16 14-15 13-14 12-13
total Assets 16439.35 9798.09 5910.54 6022.14 6972.31
tottal reveue 16473.11 10226.87 8090.04 5925.34 6365.39
PAT 508.82 320.2 203.04 31.99 156.17
DEBT 7315.98 4867.45 2586.04 2647.47 3035.38

EPS: 2.32

P/E @ share issued: 17.5-20 approx

RoNW: 8.56%

Net Asset Value Per Share : 25.20

For More Info Click Here

Bidding, Prospectus , application form , Ratio analysis.

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Morning Business News Round Up_August 08,2017

Morning Business News :

  • Airtel may sell 3.7% stake in Bharti Infra for Rs 2500 cr
  • Bankers review progress of 12 large NPA accounts
  • PSU banks write off Rs 2.49 lakh cr of loans in 5 yrs
  • Iron ore worth Rs 1,900 cr illegally extracted: CAG
  • Eros in talks with Apple to sell its content library
  • ONGC to pump $150 mn in Colombia, Kazakh & B’desh
  • Note ban, GST make a dent in smartphone shipments
  • Irdai directs LIC to reduce stakes in L&T, ITC to 15% by Dec 2018
  • Sebi mulls extending derivatives market timing
  • GIC Re files for IPO; might raise Rs 6,000 cr
  • Tata Steel swings back to profit in Q1 at Rs 921 cr
  • Zero tax certification for foreign remittances under I-T lens
  • Govt may impose anti-dumping duty of $452 a tonne on certain Chinese tyres
  • Idea-Vodafone deal gets conditional nod from SEBI, bourses

Image result for Idea-Vodafone deal gets conditional nod from SEBI, bourses

  • SUVs, luxury cars to cost more as GST cess hiked to 25%
  • Govt annuls fifth round of coal mines auction on tepid response
  • SAT puts off hearing on IRDAI-Sahara Life to August 10
  • IRDAI working with govt to create a simple platform for KYC
  • Vodafone-Idea merger gets conditional nod from Sebi, exchanges
  • July sovereign gold bonds to start trading from Tuesday
  • Global investors line up for stake in Bhushan Steel
  • Bank of India to raise up to Rs626 crore via STCI Finance stake sale
  • Reliance Jio’s plea on Airtel ads on internet speeds dismissed
  • GAIL seeks reworking of US LNG price deal
  • Exporters facing difficulties in GST transition period: EEPC
  • Air India disinvestment: Government to float request for proposal for merchant bankers
  • Securitisation market volume clips past $1.02 trillion in FY17
  • RBI appears more tolerant of currency strength
  • Trai plans to brush up Net speed testing methodologies
  • DeMo effect: ITR filings for 2016-17 grow 25% to 2.82 cr
  • Government asks Basmati exporters to conform to EU pesticide standards