religare morning digest · spicejet ltd. srs ltd. tata motors ltd. uniply industries ltd. unitech...

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Religare Morning Digest

February 16, 2017

Nifty Outlook

VWAP (Expiry till date) Max OI (Call) Max OI (Put)

NIFTY 8690 9000 8500

Markets finally ended the consolidation phase today and slipped nearly a percent. The fall was led by auto major, Tatamotors, which lost nearly ten percent, disappointed by its quarterly result. Soon, other sectoral indices also joined in, which further added pressure on index.

Markets may see further decline ahead but the downside seems capped. Traders should maintain extra caution in Midcap and Smallcap space as they react strongly during the corrective phase. On the other hand, it's an opportunity for those who were waiting some correction to enter as the overall trend is still up.

Sectors to watch

Sector Name Outlook

BANK STABLE

ENERGY STABLE

METAL STABLE

News

Religare Super Ideas**

FII & DII Cash Segment (Rs. in Cr.) Trade Stats

Category Amt. MTD YTD

FII -6 1350 15015

DII -3 2103 35926

NO OF CON-

TRACTS

TURNOVER IN CR

IDXFUTS 280707 19939

IDXOPT 5864499 434701

STKFUTS 653513 45634

Derivative Ideas **

DLF reported a 46.1% decline in Net Profit to Rs. 98.1 Cr in Q3 as compared to Rs. 182.1 Cr in the corresponding quarter last year. Total Income fell 30.2% to Rs. 2,057.9 Cr as compared to Rs. 2,949.5 Cr in the corresponding period last year. Shares closed down 7%.

Housing Development and Infrastructure Limited (HDIL) reported an 84% drop in Net Profit to Rs. 16.2 Cr in Q3 against Rs. 100.3 Cr in the corresponding quarter last year. Total Income fell significantly to Rs. 112.4 Cr in Q3 against Rs. 322.7 Cr in the corresponding quarter last fiscal. Shares closed down 6.9%.

Spicejet reported a 24.5% decline in its Net Profit to Rs. 181.1 Cr in Q3 as compared to Rs. 239.9 Cr in the corresponding quarter last year. Revenue rose 12.5% to Rs. 1,642.4 Cr from Rs. 1,460 Cr against the corresponding quarter last year. Shares closed down 6.8%.

*FII & DII data as on 14th February 2017

Scrip Buy/Sell CMP Initiation

Range SL* Target

MARICO BUY 265.55 262-264 256 285

SRTRANSFIN SELL FEB

FUTS 936.10 938-942 975 870

**Please note that the given technical and derivative recommendations are

"valid for taking position" only on recommended date and in the given range.

*Please note - Stoploss is on closing basis for delivery recommendation and intraday basis for futures recommendation.

Instrument B/S Lot INITIATION

RANGE SL

TAR-GET

ARVIND B 360 PE 2000 2.80-3.20 1 7.80



February 16, 2017

Religare Super Ideas

Investment Pick - Sutlej Textiles

Sutlej Textiles Industries Ltd (STIL) reported subdued numbers for Q3FY17 with a revenue and PAT de-growth of 2% & 1.5% YoY. While the revenue growth was

marginally better, profit growth (both at operating and net level) was below our estimates. EBITDA margin declined by 61bps YoY to 12%.

With market leadership, diversified offerings of value added products, strong clientele and steady capacity addition, STIL is well placed to exploit the available

opportunities in the Textile industry. We are keeping our projections for FY18E and FY19E unchanged, since we expect a meaningful revival in growth from Q1FY18. Maintain BUY with target price of Rs 1,032.

Scrip CMP Target Duration Recommendation Price

SUTLEJTEX 834.75 1,032 9-12 Months 843

ARVIND added around 4.6% of open interest as

fresh short positions. Daily vwap is around 373

levels. Call writing was seen at 380 strike and put

buying (unwinding by writers) was seen at 360

strike. We suggest buying 360 PE as per levels given

below.

Strategy: BUY ARVIND 360 PE AT 2.80-3.20, SL 1,

TARGET 7.80.

Derivative Ideas

Marico Limited (MARICO) Shriram Transport Finance Company

Limited (SRTRANSFIN)

After spending more than a month around its

support zone i.e. 257 level, MARICO has registered

a breakout on 7th February, supported by volume.

Currently, signs of profit taking are visible, as its

over all trend is positive; hence, we suggest traders

to buy on dips.

SRTRANSFIN was trading in narrow range, just

below the confluence zone of its important

medium and long-term averages (100/200 EMA) on

daily chart. Yesterday, i.e. 15th February, profit

taking was witnessed on back of strong volume,

indicating weakness to continue.



February 16, 2017

Religare Investment Calls

Name of the Company Reco Date Reco Price Target Price Upside % Previous day Closing Price

Tech Mahindra 7-Aug-15 534 600 12.4% 495.7

Kotak Mahindra Bank 19-Aug-15 688 900 30.8% 784.3

Glenmark Pharma 10-Sep-15 1,017 1,370 34.7% 927.5

Dabur India 10-Sep-15 275 325 18.1% 265.1

HUL 10-Sep-15 803 1,050 30.8% 850.1

Bajaj Corp 3-Nov-15 416 500 20.3% 369.0

Britannia Inds 23-Dec-15 2,896 3,600 24.3% 3194.4

Nandan Denim 5-Jan-16 150 183 22.0% 114.6

Atul Auto 22-Mar-16 506 580 14.6% 419.8

Talwalkars Better Valkue Fitness 22-Aug-16 252 328 30.2% 221.6

Jamna Auto 2-Sep-16 217 272 25.3% 196.0

SML Isuzu 26-Sep-16 1,300 1,560 20.0% 1186.2

Cigniti Technologies Ltd. 5-Oct-16 419 538 28.3% 384.7

Arman Financial Services 14-Oct-16 260 338 30.0% 218.6

Garware Wall Ropes Ltd. 23-Nov-16 567 686 21.0% 607.8

Indo Count Industries Ltd. 30-Nov-16 155 207 33.5% 165.4

VIP Industries Ltd. 30-Nov-16 118 166 41.0% 145.1

Minda Corporation 06-Dec-16 95 117 23.2% 91.5

Fiem Industries 26-Dec-16 1,089 1,315 20.8% 956.3

Castrol India 26-Dec-16 358 483 34.9% 413.4

Jain Irrigation Systems 26-Dec-16 82 104 26.8% 94.7

LIC Housing Finance 25-Jan-17 526 667 27.0% 548.5

Force Motors 25-Jan-17 4,274 5,210 21.9% 4080.3

Zee Entertainment Enterprises 27-Jan-17 498 592 18.8% 520.7

Swaraj Engines Ltd. 31-Jan-17 1,406 1,736 23.5% 1378.2

Greenply Industries 3-Feb-17 268 304 13.4% 278.7

Manpasand Beverages 7-Feb-17 681 854 25.4% 683.7

Wonderla Holidays 7-Feb-17 380 430 13.1% 372.3

Century Plyboards 8-Feb-17 216 300 38.8% 228.6

Credit Analysis and Research 9-Feb-17 1,381 1,694 23.0% 1371.4

NRB Bearings 9-Feb-17 108 132 22.2% 109.6

Tv Today Network 14-Feb-17 270 360 33.3% 268.8

CRISIL 14-Feb-17 2,078 2,540 22.2% 2051.4

Sutlej Textiles 14-Feb-17 843 1,032 22.5% 834.8



February 16, 2017

Result Calendar — February 2017

Sun Mon Tue Wed Thu Fri Sat

12 13

ALLAHABAD BANK

BLUE CHIP INDIA LTD.

BRITANNIA INDUSTRIES LTD.

CENTURY EXTRUSIONS LTD.

EDUCOMP SOLUTIONS LTD.

FIEM INDUSTRIES LTD.

HINDUSTAN PETROLEUM CORPO-RATION LTD.

IL&FS INVESTMENT MANAGERS LTD.

Kohinoor Techno Engineers Limited

MAN INDUSTRIES (INDIA) LTD.-$

Minda Corporation Ltd

Minda Finance Ltd

NBCC (India) Ltd

NMDC LTD.

PETRONET LNG LTD.

POWER FINANCE CORPORATION LTD.

PTC INDIA FINANCIAL SERVICES LTD.

PRESTIGE ESTATES PROJECTS LTD.

SKF India Ltd

SUNTECK REALTY LTD.

V B Industries Ltd

SATYAM SILK MILLS LTD.

S.V.TRADING & AGENCIES LTD.

14

ADITYA BIRLA NUVO LTD.

ADANI ENTERPRISES LTD.

ADANI PORTS AND SPECIAL ECONOMIC ZONE LTD.

APOLLO FINVEST (INDIA) LTD.

APOLLO HOSPITALS ENTERPRISE LTD.

CAMEX LTD.

CES Limited

Cox & Kings Limited

FINOLEX CABLES LTD.

FORTIS HEALTHCARE LTD.

KOHINOOR FOODS LTD.

KSE LTD.-$

KSS Limited-$

MT EDUCARE LTD.

MAHANAGAR TELEPHONE NIGAM LTD.

NCC FINANCE LTD.

NITCO LTD.

Parag Milk Foods Ltd

PC JEWELLER LTD.

SPICEJET LTD.

SRS LTD.

TATA MOTORS LTD.

UNIPLY INDUSTRIES LTD.

UNITECH LTD.

UNITED TEXTILES LTD.

Vedanta Limited

V.I.P.INDUSTRIES LTD.-$

VOLTAS LTD.

15

ADVANCE LIFESTYLES LTD.

ASAHI INDIA GLASS LTD.

Bansal Roofing Products Ltd

Deep Diamond India Ltd

INDOVATION TECHNOLOGIES LTD.

METROPOLI OVERSEAS LTD.

NESTLE INDIA LTD.

RAJ TELEVISION NETWORK LTD.

16

MACHINO PLASTICS LTD

N2N Technologies Limited

17

SUNDARAM FINANCE LTD.

18



February 16, 2017

Corporate Action Calendar — February 2017 (Cash Dividend)


12 13

Automobile Corp of Goa Ltd

Oil India Ltd

Hikal Ltd

Dr Lal PathLabs Ltd

14

Orbit Exports Ltd

Indian Metals & Ferro Alloys Ltd

Bharat Heavy Electricals Ltd

Redington India Ltd

Great Eastern Shipping Co Ltd/The

MRF Ltd

Credit Analysis & Research Ltd

Creative Castings Ltd

Carborundum Universal Ltd

15

Indian Hume Pipe Co Ltd

NTPC Ltd

Gulf Oil Lubricants India Ltd

Poly Medicure Ltd

16

Page Industries Ltd

Power Grid Corp of India Ltd

Sterling Tools Ltd

Shivalik Bimetal Controls Ltd

Amrutanjan Health Care Ltd

Bosch Ltd

Selan Exploration Technology Ltd

Jayant Agro-Organics Ltd

Menon Bearings Ltd

SNL Bearings Ltd

AVT Natural Products Ltd

Minda Industries Ltd

Accelya Kale Solutions Ltd

Bharat Forge Ltd

17

SRF Ltd

Balkrishna Industries Ltd

Mahanagar Gas Ltd

Tube Investments of India Ltd

Sun TV Network Ltd

18

Corporate Action Calendar — February 2017 (Stock Buyback)


12 13 14 15

Apar Industries Ltd

16 17 18

Corporate Action Calendar — February 2017 (Stock Dividend)


12 13 14

Orbit Exports Ltd

Ishan Dyes And Chemicals

15

16 17 18



February 16, 2017

Corporate Action Calendar — February 2017 (Stock Split)


12 13 14 15

16

Compuage Infocom Ltd

17

Dwitiya Trading Ltd

Allied Computers International Asia Ltd

18

Economic Calendar — February 2017 )


12 13

CPI YoY

Trade Balance

Exports YoY

Imports YoY

14

Wholesale Prices YoY

15

16

17

18



February 16, 2017

Current Portfolio and Performance Summary as on 15th February’17

Stock Sector Entry Date Weight Reco price (`) CMP (`)

Bajaj Corp Consumer Goods May 13, 2016 8.7% 393 369

Magma Fincorp Financial Services June 30, 2016 8.6% 109 98

Apollo Hospitals

Enterprises Healthcare Services July 29, 2016 9.3% 1,362 1,232

Emami Consumer Goods August 3, 2016 9.7% 1,151 1,095

Castrol India Energy August 5, 2016 9.9% 425 413

Punjab National Bank Financial Services October 3, 2016 10.2% 143 140

Minda Corporation Auto Ancillaries October 10, 2016 9.1% 109 91

CRISIL Financial Services February 2, 2017 10.3% 2,000 2,051

Sml Isuzu Auto February 6, 2017 9.6% 1,265 1,186

Cash 14.5%

Total Total 100%



February 16, 2017

Historical Performance as on 15th February’17

Performance Matrix 1-Month 3-Month 6-Month 1-Year Since Inception

Religare Alpha 4.4% 2.2% -2.0% 20.8% 24.9%

Nifty 3.9% 7.6% 0.6% 23.8% 10.7%

Outperformance 0.6% -5.4% -2.6% -3.0% 14.2%



February 16, 2017

Research Product Basket

For cash market trading

Call / Product Call Frequency No. of calls Avg open call duration % funds allocated

Intraday Calls Intraday 2 - 3 < 1 day 25%

Live / RMD Calls Daily 3 - 4 3 - 4 days 30%

Master Pick Weekly 1 1 month 15%

Religare Alpha Opportunity NA 2 - 3 months 20%

Cash NA 10%

For 1L margin*

Total Per Call

25,000 8,000

30,000 4,000

15,000 5,000

20,000 As per weightage

10,000

Intraday Calls These calls are flashed live on Ms Lync and ODIN with the purpose of squaring off positions on the same day. As a policy, we restrict our

intraday cash market calls to less than 4 calls a day. Hence, funds should be allocated accordingly to have provision to trade in all calls.

Live / RMD Calls 2 super ideas are flashed in RMD daily with a view of 3-4 days. Additionally as per market opportunity, we flash live calls during the day

(including BTST calls). 3-4 such calls are made on a daily basis which might be open for 3-4 days. Funds should be allocated keeping in mind that

there will be 7-8 such open calls daily.

Master Pick This is our weekly recommendation shortlisted on the basis of techno-funda analysis. 15% of funds is recommended to be allocated for Master

Pick considering that there will be 3 open calls. The average open duration for this call will be 1 month.

Religare Alpha This is a portfolio of 8-10 stocks which are held with a view of 2-3 months. It is recommended to allocate 20% of funds for building this portfolio

which will provide stability to the overall trading portfolio.

Cash 10% surplus cash in the portfolio should be kept for the purposes of allocating it to opportunities as and when they arrive.

For derivative market trading

Call / Product Call Frequency No. of calls Avg open call duration % funds allocated

Derivative Ideas Daily 1 - 2 1 - 3 days 40%

Live calls Intraday / Daily 1 - 2 3 - 4 days 50%

Cash NA 10%

For 1L margin*

Total Per Call

40,000 40,000

50,000 50,000

10,000

Derivative Ideas 1 derivative idea is shared in RMD daily. It can be a plain vanilla F&O buy/sell call or an option strategy. Funds should be allocated assuming 2

such calls will be open at any time. These calls are open for 3-4 days on an average.

Live Calls These calls are flashed on MS Lync and ODIN during live market hours. These calls can be intraday or with a view of 2-3 days. Funds should be

allocated considering 2 such calls will be open at any time. 3/4 times, these calls will be on Nifty / Bank Nifty only.

Cash It is recommended to hold 10% cash to capitalize on any opportunity that may arise in markets.

For every client, the advisor must allocate a specific proportion of funds for trading and investing depending on the risk taking ability and willingness of the client

and their investment goals.

The below mentioned product basket tries to address the way to deal with the trading portfolio (cash/derivative) for optimum effectiveness of research calls.

It is recommended to divide your trading funds for various types of calls and not invest the entire amount for 1 or 2 calls only.



February 16, 2017

Hitesh Agrawal [email protected]

Ajay Pasari, CFA [email protected]

Ajit Mishra [email protected]

Archana Gude [email protected]

Gaurav Sharma [email protected]

Swati Saxena [email protected]

Manoj M Vayalar [email protected]

Mehernosh Khurshed Panthaki [email protected]

Siji A Philip [email protected]

Vipin Kumar [email protected]

Team Members



February 16, 2017

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[Please note that only in case of multiple RAs, if in the event answers differ inter-se between the RAs, then RA specific answer with respect to questions under F (a) to F(j) below , are given separately]

Nature of Interest ( if answer to F (a) above is Yes : ……………………………………………………………………………………………………………………

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S. No. Statement Answer

Yes No

I/we or any of my/our relative has any financial interest in the subject company? [If answer is yes, nature of Interest is given below this table] No

I/we or any of my/our relatives, have actual/beneficial ownership of one per cent. or more securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance?

No

I/we or any of my/our relative, has any other material conflict of interest at the time of publication of the research report or at the time of public appearance?

No

I/we have received any compensation from the subject company in the past twelve months? No

I/we have managed or co-managed public offering of securities for the subject company in the past twelve months? No

I/we have received any compensation for brokerage services from the subject company in the past twelve months? No

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I/we have received any compensation or other benefits from the subject company or third party in connection with the research report? No

I/we have served as an officer, director or employee of the subject company? No

I/we have been engaged in market making activity for the subject company? No

SS..No. Name(s) of RA.

Signtures of RA

Serial Question of question which the signing RA needs to make a separate declaration / answer

Yes No.

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