Vol.
: 337
17 APR ,2017
Index
Market View 1
MARKET VIEW
Company Update 2 THE GEOPOLITI CAL EVENTS HURTI NG THE MARKET SENTIMENT
Around the
Economy 3 The market sentiment was hurt by series of events taken place in last couple of
days. The missile attack on Syria by USA has triggered some strong verbal exchange
Knowledge Corner 3
between USA and Russia. The stance taken by North Korea and continuous disobedi-
Mutual Fund 4 ence to international fraternity has also created a situation where escalation can be
triggered. China is also playing its part while Japan is deeply concerned. Considering
Commodity Corner 5
the above situation the sentiment of market is lowered and FIIs have started booking
Forex Corner 6 profit. The recent event of mega bombing of Afghanistan by USA is also going to be
Report Card 7 contentious issue.
Short Term Call Status 8
Under the circumstances, the other local events have taken back seat. Techni-
Editor & Contributor
Darshana Mishra cally the market can go up to 8950-9000 range. For those investors who have got guts
and tolerance, it is a good opportunity for medium to long term investment.
Special Contributors
Kunal Shah
Dhaval Ghodasara
K a m a l J h a v e ri
M D- Jha ve ri S e curi ti e s
For suggestions, feedback
and queries
jstreet@jhaveritrade.com
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Vol.: 337
17 APR ,2017
Company Update : MARICO LTD
Company Basics Financial Basics Share Holding Pattern
BSE Code 531642 FV (`) 1.00 Holder's Name % Holding
EPS (`) (TTM) 6.39 Promoter 60.00
NSE Symbol MARICO P/E (x) (TTM) 46.32 Public 40.00
EQUITY (` in Cr.) 129.00 P/BV (x) (TTM) 14.70
MKT.CAP (` in Cr.) 38194.99
Outlook and valuation : We recommend ACCUMULATE on the stock as we see expect revenue to grow at 11%
CAGR over FY16-18E. This will be driven by volume growth in Parachute rigid packs, Saffola oil and VAHO helped by
capacity expansion at new plants. We see limited upside with stock trading at ~37x P/E of FY18E. (Target Price-
Rs.340)
Company Overview :
Marico Limited (ML), a leading Fast Moving Consumer Goods (FMCG) player was incorporated on 13th Octo-
ber 1988 under the name of Marico Foods Limited. Marios Products and Services in Hair Care, Skin Care and
Healthy Foods reach out to more than 20 countries in the Middle East, Asian sub -continent, Australia and
USA. With a extensive distribution network of more than 2.5 Million outlets in India and overseas, the company
markets well-known brands such as Parachute, Saffola, Kaya, Sundari and Fiancee to name few, most of
which enjoy leadership positions (No. 1 or No. 2), with significant market shares in respective categories.
Investment rationale for Marico Ltd
Strong brand presence in the domestic market.
Most of its products are major holder in FMCG products.
Marico has strong availability of Youth Products.
The company is entering into male products segment.
Innovation will be high in Foods, edible oils and premium products.
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Vol.: 337
17 APR ,2017
Around The World
Weekly Market Recap :
The inflation based on cons umer price index (CPI) increased to 3. 81% in March 2017 (new bas e 2012=100), compared with 3.65% i n
February 2017. On mac roec onomic data front, industrial production declined 1. 2% in February 2017 over February 2016, snapping 3.3%
growth recorded in January 2017. The manufacturing sector's production dipped 2% in February 2017 mainly contributing to the dip in
industrial production.
Japan's current account surplus stood at 2.81 trillion yen ($25.26 billion) in February, the biggest surplus since March 2016 . China's con-
sumer price index increased 0.9% in March from a y ear earlier, compared with a 0.8% gain in February, the National Bureau of Statistics
said. Sentiment in global markets remained subdued during the week as investors were cautious amid geopolitical tensions in Syria a nd
Nort h Korea.
Market Eye Week ahead :
The major trigger for the market ahead is Q4 and FY2017 results of India Inc. Stocks of public sector oil mark eting companies (PSU
OMCs) will be in focus as a scheduled fuel pric e revision is due during this weekend. IndusInd Bank and Yes Bank will announce March
2017 quarter results on Wednesday, 19 April 2017.
On the global front, China's industrial production data for February 2017 is due on Monday, 17 April 2017. US industrial prod uction data
for March 2017 is set to release on Tuesday, 18 April 2017. US Fed's Beige Book is slated to release on Wednesday, 19 April 2017. Euro-
zone preliminary Markit PMI Composite index for April 2017 is due on Friday, 21 April 2017.
Key Events / Factors to Watch
1. Mon : Re sult: Gruh finance
2. Tue : Result: TCS, VST ind.
3. Wed : Yes bank, Indusind bank, TV 18.
4. Thu: Re sult: Cyient, Hind Zinc.
5. Fri : ACC, HDFC Bank, Fag bearings.
Knowledge Corner :
EARNING PER SHARE (EPS)
The basic measurement of earnings is earnings per share or EPS. This measurement divides the earnings by the num-
ber of outstanding shares. Earnings (or growth towards positive earnings) tell you how healthy a company is.
Why EPS?
The reason you reduce earnings to a per share basis is to compare it with another company. Its important to note here
that the EPS is helpful in comparing one company to another, assuming they are competing companies of the same cate-
gory.
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Vol.: 337
17 APR ,2017
Mutual Fund Corner
Top 10 Sector Break-Ups
Fund Name
Sector Weights Fund (% )
Scheme Name DSP BLACKROCK OPPOURTUNITIES FUND
Financial 30.91
AMC DSP Black Rock Investment Managers Automobile 4.37
Energy 10.82
Type Open Ended & Equity Multi Cap
Healthcare 6.61
Category Open-ended FMCG 6.50
Launch Date May 2000 Technology 7.39
Metals 6.71
Fund Manager Rohit Singhania June 2015 Construction 7.01
Net Assets (` Diversified 5.83
Rs. 1691.1 crore as on Feb 28, 2017
In crore ) Chemicals 3.51
History 2013 2014 2015 2016 Risk Analysis
Volatility Measures
NAV (Rs) 96.43 140.22 148.76 165.37
Standard Deviation 16.24
Total Return (%) 6.46 45.40 6.09 11.16 Sharpe Ratio 1.11
Beta 1.09
Rank (Fund/Category) 32/73 93/145 31/173 10/143
R-Squared 0.86
Alpha 10.60
52 W eek Hi gh (Rs) 96.43 143.65 157.09 180.85
Composition (% )
52 Week Low (Rs) 79.71 92.17 137.98 126.55
Equity 94.65
Net Assets (Rs.Cr) 489.59 802.82 820.70 1266.32 Debt 0.07
Cash 5.28
Expens e Ratio (%) 2.70 2.66 2.65 2.72
Fund Performance v/s Nifty 500 Fund Style
Investment Style
Growth Blend Value
Large
Capit alization
Medium
Small
Fund
Nifty 500
(Rebased to 10,000) Source : - www.valueresearchonline.com
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Vol.: 337
17 APR ,2017
Commodity Corne r
BULLION
FUNDAMENTAL: Bullion gained as concerns over North Korea and the Middle East sent investors scurrying for the safety of bullion and
the dollar wilt ed. Fears of a new weapons test by North Korea as a U.S. carrier group sailed towards the region, as well as w orries about
the forthcoming French presidential election, also kept investors on edge. In an interview in the Wall Street Journal Trump s aid the U.S.
dollar is getting too strong and would eventually hurt the economy. Trump also said he would prefer the Federal Reserve kee p interest
rates low. Consumer sentiment in the U.S. has unexpectedly improved in the mont h of April, according to a report released by t he Uni-
versity of Michigan. The report said the consumer s entiment index rose to 98.0 in April from 96.9 in March. First -time claims for U.S. un-
employment benefits unexpectedly edged lower in the week ended April 8th, according to a report released by the Labor Departm ent.
The report said initial jobless claims dipped to 234,000, a decrease of 1,000 from the previous week's revised leve l of 235,0 00. The La-
bor Department said the less volatile four-week moving average also slipped to 247, 250, a decrease of 3,000 from the previous we ek's
revis ed average of 250,250. Separate reports showed that U.S. produc er prices fell in March for the first time in seven mont h s, but re-
corded the largest year-on-year increase in five years.
RECOMMENDATION : BUY GOLD @ 29300 SL 29000 TGT 29650-29000 BUY SILVER @42300 SL 41400 TGT 43100-43800
BASE METALS
FUNDAMENTAL: Base metals prices last week ended with losses where nickel prices dropped the most by more than 4.5% shrugging off
a tentative recovery in the broader financial markets as geopolitical tensions and fading hopes for a boost to U. S. demand pr essured
prices. Zinc prices dropped by around 1.95% as data showed Chinese mine supply surged by nearly a fifth last year. The global zinc
market moved into a surplus of 19,800 tonnes in February from a deficit of 22, 300 tonnes in January, data from ILZSG showed. In the
first two months of the year, the zinc market was in a deficit of 2,000 tonnes vers us a surplus of 44, 000 tonnes in the s ame period last
year. Zinc continues to see plenty of sellers lined up on every rally amid increasingly aggressive CTA selling and ongoing lo ng liquida-
tion. Copper has faltered after BHP Billiton restarted production in Chile last week and Freeport McMoRan said it was waiting for final
details on a temporary export permit in Indonesia. Copper has faltered after BHP Billiton restarted production in Chile last week and
Freeport McMoRan said it was waiting for final details on a temporary export permit in Indonesia.
RECOMMENDATION : BUY ALUMINIUM @ 125.5 SL 122.5 TGT 127.5-129 SELL COPPER @ 372 SL 378 TGT 364-358 SELL ZINC @ 171 SL
175 TGT 167-162 BUY NICKEL @ 618 SL 600 TGT 635-660
ENERGY
FUNDAMENTAL : Crude oil ended with around 2% gains on weekly basis after the IEA said the market was nearing balanc e, while dat a
showing higher U.S. production kept gains in check. The IEA, said supply and demand in the global oil market was close to mat ching
after a fall in stockpiles in developed countries in March. "It can be argued confidently that the market is already very clo se to balance,"
the agency said in its monthly report. The market has been overs upplied for three years, prompting members of the Organizatio n of the
Petroleum Exporting Countries and some non-OPEC producers to agree to cut output in the first six months of 2017 to rein in the glut.
OPEC data showed members of the group had c ut March out put beyond the level they had promised. The IEA said oil stocks in the Or-
ganisation for Economic Cooperation and Development (OECD) industrialized countries fell by 17. 2 million barrels in March, al though
inventories were still 300 million barrels above the five -year average. OPEC meets on May 25 to consider extending the cuts beyo nd
June. Saudi Arabia, Kuwait and most other OPEC members are leaning towards this if agreement is reached with other producers,
OPEC sourc es told Reuters last month.
RECOMMENDATION : BUY CRUDE @ 3350 SL 3260 TGT 3450-3520 SELL NAT.GAS @ 212 SL 220 TGT 202-192
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Vol.: 337
17 APR ,2017
Commodity Corne r
Forex Corner
Market Recap :
The Indian rupee on Monday was trading little
changed against the US dollar in mid-day trade.
The 10-year bond yield was trading at 6.848%
compared to its previous close of 6.822%. Bond
yields and prices move in opposite directions.
The dollar index, which measures the US cur-
rencys strength against major currencies, was
trading at 100.35, down 0.15% from its previous
close of 100.51 .
Market Eye Week ahead :
The USDINR On daily chart pair below all short term, medium term, and long term moving average which is 20,
100 and 200.Whereas on weekly chart pair has continually taking support at 50WMA. Which suggest short term
trend is bearish. So for trading perspective, one could sell to the level 64.70-64.50 with SL of 65.00 for target of
64.29-64.07
USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 64.07 64.29 64.56 64.78 65.05 64.84 64.35 64.50
EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 67.85 68.28 68.63 69.09 69.41 68.63 68.21 68.70
GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 79.32 80.13 80.65 81.46 81.98 81.16 79.83 80.95
JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 57.31 58.26 58.80 59.75 60.29 59.35 57.86 59.20
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Vol.: 337
17 APR ,2017
J Street Recommendations Report Card
Nifty last week opened at 9225.60, attained a high at 9246.40 and fell to a low of 9144.95. Nifty finally closed the
week at 9150.80 thereby showed a net fall of 0.52%.Resistance will be at 9180 -9216-9274. Lower range for the week
can be 9115-9079-9013. The earlier gap of 9060-8977 was partially filled to a low of 9019 and the same could offer
support.
Top Fundamental Stocks
Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
Petronet 20/02/2017 400 436 490 9% Buy
Escorts 06/02/2017 383 553 590 44% Buy
Edelweiss financial 16/01/2015 117 172 175 47% Accumulate
IOC Ltd 27/02/2017 376 424 470 13% Accumulate
Marico 20/02/2016 255 301 340 18% Buy
Voltamp transformer 13/02/2017 925 1244 1120 34% Buy
Mothersumi 03/04/2017 376 374 440 -1% Buy
LichsgFinc 27/03/2017 608 632 720 4% Accumulate
Asian Paints 10/03/2017 1030 1066 1180 3% Accumulate
Nbcc india 20/03/2017 175 177 210 1% Buy
Alembic Pharmaceuti-
30/08/2016 630 621 732 -1% Buy
cals
Wonderla 25/04/2016 387 389 498 1% Buy
Mold Tek Pack 04/04/2016 49 53 179 7% Buy
Welspun syntex/AYM 23/11/2015 121 81 223 -33% Buy
Ahluwalia contracts 24/08/2015 235 336 368 43% Profit Book
Infinite Computer Sol. 20/07/2015 190 222 255 17% Profit Book
Sadbhav Engineering
04/05/2015 298 330 430 11% Buy
Ltd.
Omkar speciality
16/03/2015 152 179 251 18% Buy
Chemicals
DHFL 16/02/2015 252 390 368 55% Profit Book
M&M 12/01/2015 1238 1271 1450 3% Buy
PTC India Fin. Ser. 07/07/2014 39 48 45 23% Profit book
If you buy the things you don't need, soon you need to sell those things you need.
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Vol.: 337
17 APR ,2017
J Street Short Term Call Status
Sr. BUY/ TRIGGER %
No.
DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
1 28-Feb-17 BEML BUY 1330 1345 1337.50 1397.00 1296 EXPIRE .
2 1-Mar-17 ARVIND BUY 376 381 378.50 396.00 366 TA 4.2
3 2-Mar-17 M&M BUY 1340 1356 1348.00 1410.00 1298 SL -3.7
4 3-Mar-17 ULTRACEMCO BUY 3800 3840 3820.00 3990.00 3710 TA 4.4
5 6-Mar-17 TITAN BUY 434 441 437.50 457.00 423 TA 4.5
6 7-Mar-17 LICHSGFIN BUY 560 570 565.00 594.00 546 TA 5.1
7 8-Mar-17 COLPAL BUY 925 935 930.00 972.00 898 TA 4.6
8 9-Mar-17 ZEEL BUY 507 516 511.50 538.00 491 TA 4.2
9 10-Mar-17 UPL BUY 705 715 710.00 744.00 686 TA 4.1
10 14-Mar-17 JUBLFOOD BUY 1064 1080 1072.00 1127.00 1028 TA 4.4
NA-
11 15-Mar-17
TIONALALUM
BUY 72 73 72.50 81.00 66 EXPIRE .
12 16-Mar-17 JINDALPOLY BUY 348 352 350.00 386.00 315 TA 4.6
13 17-Mar-17 IBULHSGFIN BUY 940 954 947.00 1004.00 912 SL -3.7
14 20-Mar-17 HAVELLS BUY 438 444 441.00 460.00 425 TA 4.4
15 21-Mar-17 CUMMINSIND BUY 900 915 907.50 951.00 874 TA 4.6
16 22-Mar-17 GRASIM BUY 1078 1093 1085.50 1136.00 1044 SL -3.6
17 23-Mar-17 WIPRO BUY 495 523 509.00 523.00 481 SL -3.5
18 24-Mar-17 JETAIERWAYS BUY 476 483 479.50 502.00 461 TA 4.8
19 27-Mar-17 CUMMINSIND BUY 912 922 917.00 958.00 885 TA 4.8
20 28-Mar-17 PETRONET BUY 402 410 406.00 428.00 388 TA 4.7
21 29-Mar-17 ZEEL BUY 525 535 530.00 560.00 507 EXPIRE
22 30-Mar-17 ASIANPAINT BUY 1060 1075 1067.50 1120.00 1028 OPEN
23 3-Apr-17 LT BUY 1565 1580 1572.50 1640.00 1535 TA 4.6
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Vol.: 337
17 APR ,2017
J Street Short Term Call Status
BUY/ TRIGGER %
Sr. No. DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
24 5-Apr-17 JISLJALEQS BUY 98 100 99.00 106.00 94 OPEN .
25 6-Apr-17 MOTHERSUMI BUY 378 382 380.00 398.00 366 OPEN .
26 7-Apr-17 CADILAHC BUY 446 453 449.50 472.00 432 OPEN .
27 10-Apr-17 INFRATEL BUY 345 350 347.50 364.00 333 TA 4.8
28 11-Apr-17 BATAINDIA BUY 565 575 570.00 600.00 550 OPEN .
29 12-Apr-17 IGL BUY 1025 1038 1031.50 1080.00 998 OPEN .
INDUSIND-
30 13-Apr-17 BUY 1430 1455 1442.50 1520.00 1392 OPEN .
BANK
STATUS CALLS RATIO
TA+PB 16 80.00
SL+EXIT 04 20.00
TOTAL 20 100.00
One call on daily basis is given keeping view of short term trading on closing basis.
Time frame and expected % of return is also mentioned with the suggested call.
This call are purely given on technical trading system generated by the Technical Research Desk.
Generally Expected Return on investment is 5-6 % with time horizon of 6-7 days.
Profit Booking update is considered if on an average expected return exceed 3.50-4.00 % against the
Expected return of 5-6%
Risk- Reward ratio percentage wise depends on the volatility of stock Normally it stands ( 3 : 9)
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Vol.: 337
17 APR ,2017
