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T
VOL. XXIV No. 8

A TIME COMMUNICATIONS PUBLICATION

Monday, 29 04 December 2014

S
Pages 20

Rs.15

Markets to remain range

bound
By Sanjay R. Bhatia
Mirroring the weak global market cues, the domestic
markets continued the downtrend struggling to sustain
above the 50-day SMA. The markets remained volatile and
choppy due to the F&O expiry and year-end NAV
considerations for the FIIs.
The FIIs remained net sellers in the cash segment but
turned net buyers in the derivatives segment. Domestic institutional investors (DIIs), however, continued to remain net
buyers and were seen supporting the markets at lower levels. The breadth of the market remained neutral amidst higher
volumes.
The Parliament session ended with a logjam in the Upper House. Since the BJP government found it difficult to pass the
Insurance FDI bill in the Rajya Sabha, it adopted the ordinance route, which is a make shift arrangement for the time
being. The Rupee traded around the 63.50 mark against the green buck, while crude oil prices continued to soften on the
back of OPEC countries reiterating that they would not cut production and would let the market forces decide the crude
price. The US markets continued to move higher
on the back of good economic numbers while
Russia was able to bail itself out with help from
the Chinese government.
Technically, the prevailing negative technical
conditions weighed on the market sentiment
leading to selling pressure. The Nifty is still
placed below its 50-day SMA, which is a short
term negative. The Stochastic and KST all are
placed below their respective averages on the
daily and weekly charts. Further, the MACD is
placed below its average on the daily charts
while the RSI is placed below its average on the
weekly charts. These negative technical
conditions would lead to intermediate bouts of
selling pressure especially at higher levels.
However, the prevailing positive technical
conditions still hold good and would help the
A Time Communications Publication

markets witness buying support at lower levels. The RSI has moved above its average on the daily charts. Further, the
MACD is placed above its average on the weekly charts. The Nifty is still placed above its 100-day SMA and 200-day SMA.
Further, the Niftys 50-day SMA and 100-day SMA are placed above Niftys 200-day SMA, which is known as the Golden
Cross breakout. These positive technical conditions would lead to regular buying support at lower levels.
The -DI line is placed above the ADX line and +DI line on the daily charts and is also placed above the 31 level but has
come off its recent highs indicating that sellers are covering shorts regularly.
The markets are poised crucially. The Nifty is placed below its 50-day SMA, which would lead to further selling pressure.
Now it is important that buying support emerges regularly and the Nifty moves above its 50-day SMA placed at 8265
levels. Otherwise, the markets could fall further and the Nifty could test the 7968 support level. The markets are likely to
remain range bound and lacklustre due to the year-end holidays. In the meanwhile, the markets would take cues from
crude oil prices and the Dollar-Rupee Exchange Rates, which is trading above the 63.50 mark.
Technically, on the upside the BSE Sensex faces resistance at the 27355, 27600, 28500, 28766 and 29000 levels and
seeks support at the 27000, 26752 and 26108 levels. The support levels for the Nifty are placed at 8250, 8216, 8180,
7968, 7779 and 7723 while it faces resistance at 8350, 8536 and 8623 and 8700 levels.

BAZAR.COM

Planning a profitable 2015

By Fakhri H. Sabuwala
At every New Year, its time for new resolutions both in the personal and
financial aspects of living even as the resolutions made are forgotten and broken
during the course of the year. Nevertheless, it is a human trait to resolve knowing
the implications. The New Year is the time to revisit ones past, review ones
weaknesses and resolve to correct the same in the coming year.
Many investors at the turn of New Year 2015 may be feeling left out. The rally
from BSE Sensex 18000 in September 2013 to 28800 in November 2014 was
unexpected in the early months and kept a good number of investors out of the
game. Not only that, the investors were left so unconvinced that instead of riding
the wave of teji they jumped off the bull wagon! Investors are driven by
experience that overlooks the changing realities of the situation. Experience has
taught them a bitter lesson in missing out at booking profits last time the Sensex had rallied. Also, the overdependence of
investors on the business channels and multiplicity of opinions expressed therein have left him confused.
Hence this, New Year 2015 it would be prudent to resolve and set your financial planning right and re-check the
mathematics therein.
The inflationary pressures of the last three years have left little in the hands of investors. Hence keeping finances in
check would be a necessity. Maintaining finances in tune to meet your goals is no rocket science. In fact, a common sense
approach is all that is needed. And if you have your bearings at the right place, chances of going wrong are less.
Let 2015 usher in some rethink in your approach. A recast of the dice is all that one needs to do. Given below are few
points to help you navigate better in the woods of opportunities and optimize on them.
(1) In case you are an ardent secondary market investor, you need to get into the stocks of companies whose growth you
are convinced about. Get into them by the self styled SIP route by buying a certain number of shares or of a certain value.
Your conviction in the stock and its growth story may dispel fears of liquidating the investment in case the market
corrects. One may be tempted to buy more on such opportunities, which is a true time-tested contrarian approach.
(2) Give a serious thought on the stress laid on a certain idea or a segment by the higher ups in the government. After a
silent Congress PM for over a decade, India now has a vocal PM who displays his thoughts vocally and identifies the
growth areas and the specific sectors, which makes it much easier for investors. For example, Digital India is outof-thebox thinking and so much in tune with the growing technology. Digital India opens immense opportunities for broad
bandwidth sellers, fibre optic companies, cellphone and computer manufacturers, service providers, servers,
communication towers, online business providers, online payment programme developers, couriers etc.
A Time Communications Publication

Similarly, the promulgation of GST could open immense opportunities for easy movement of goods throughout the
country. A big investment push in Railways, too, offers a great opportunity for investors taking into account the profile of
the concerned minister.
(3) In mutual funds investments, if an investor is smart enough to select the fund and the scheme, he can opt for direct
investment route and save on annual charge and thereby get slightly higher returns.
(4) Avoid short-term trades and pay no heed to officious tips.
(5) Plan your retirement fund in a way that it does not coincide with any accrued liabilities of that day. With time,
decrease your exposure to high risk investments and turn to low risk, high safety instruments. Peace of mind must be
retained at all costs in retirement.
(6) Obtain an efficient health insurance plan that not only covers you but the family too. Opt for floater policy or a family
policy with substantial coverage taking into account the rising medical costs.
(7) File your own tax returns. Not only will it save you hefty fees of a chartered accountant but give you an insight and
understanding on the various heads of incomes you have and the exemptions you can opt for.
(8) Last but not the least, let your investments flow in this order..... Home first, life and medical insurance second and last
come the equities.
Wishing all Money Times readers a Very Happy and Prosperous 2015.

TRADING ON TECHNICALS

Near term band: 27851-26469

By Hitendra Vasudeo
Last week, the BSE Sensex opened at
27479.86 and registered a high at
27851.09, fell to a low of 27091.38 and
closed the week at 27241.28 and thereby
showed a net fall of 130 points on a weekto-week basis.
The support cluster is still important for
the near term to short-term, which is the
demand zone of 26550-25910. For the
extreme near term, the band of movement
can be 27851-26469.
The last major swing on the weekly chart is
from 17448 in August 2013 to 28822 in
November 2014 the 23.6% retracement of
this rise is placed at 26100. The last higher
bottom was at 25910.
The demand zone of 26550-25910 could be put under test once again unless an immediate rise and close above 27851 is
witnessed.
In the event of a fall and weekly close below the demand zone of 25910 expect the 38.2% retracement of the rise from
17448 to 28822 to be tested which is placed at 24486.
The daily chart is below the 10-day variable average, which indicates a down trend as of Friday, 26 December 2014. The
weekly chart is still in an uptrend as the weekly charts closing is still above the 10 weeks of variable moving average.
In next few days, the next course of directional movement can be witnessed as the Sensex moves out of the band 27851
to 26469 on the daily chart on a closing basis.
Weekly resistance levels are placed at 27394-27698-27851. Weekly support will be at 26938-26178- 25910.
BSE Mid-Cap Index
A Time Communications Publication

Uncertainty in the mid-cap index is likely to prevail till the decisive movement above 10600 is not witnessed. Wider
band of movement for mid cap index is 10600-9400. Selectively, stock wise movements from the mid-cap could be seen
but collectively the index might remain in a consolidation, distribution or indecisive band.
BSE Small-Cap Index
For BSE Small-Cap index the wider band is 11600 to 10200. Resistance will be at 11100. Pullback within the fall from
11600 to 10240 could be seen if the resistance of 11100 is crossed. Like the mid cap index, the small cap index also
appears to be indecisive with near term to short term objective to exit long on the rise.
BSE Bankex
BSE Bankex made a new high last week but closed lower. The high registered last week was 21665 and closed at 21253.
Upper shadow on the candlestick can be seen. A shooting star/inverted hammer suggest that further rally in BSE Bankex
can be seen above 21700.
CNX PSU BANK
Last week, we saw positive movement in the PSU Bank, CNX PSU Bank index was positive and gained. Further rally in
PSU Bank can be seen on a breakout and close above 4350. The bias is to move higher to test the resistance of 43004350. Support cluster is at 4100-4000. Weakness can be seen below 4000. The outlook remains positive looking at last
weeks breakout in PSU Banks.
Strategy for the week
Traders long can keep the stop loss at 25900. Lower support levels of 26938-26178 could be an opportunity to
accumulate index based stocks with a stop loss of 25900. The higher range of 27698-28457 can be used to exit long and
book profits. Final breakout above 28900 is essential in order to further rally. A pullback towards the recent peak of
28822 may be seen, which could be an opportunity to cut long positions and book profits.
WEEKLY UP TREND STOCKS
Let the price move below Center Point or Level 2 and when it move back above Center Point or Level 2 then buy with whatever
low registered below Center Point or Level 2 as the stop loss. After buying if the price moves to Level 3 or above then look to book
profits as the opportunity arises. If the close is below Weekly Reversal Value then the trend will change from Up Trend to Down
Trend. Check on Friday after 3.pm to confirm weekly reversal of the Up Trend.
Scrips

EICHER MOTORS
AMARA RAJA BATTERIES
ING VYSYA BANK
BAJAJ FINANCE
YES BANK

Last
Close

Level
1

Level
2

Center
Point

Level
3

Level
4

Relative
Strength

Weekly
Reversal
Value

Up
Trend
Date

15113.00
820.00
856.00
3461.00
741.65

Weak
below
14508.0
783.0
840.0
3269.0
721.0

Demand
point
14680.7
788.7
843.3
3320.0
725.3

Demand
point
14940.3
814.3
852.7
3410.0
737.4

Supply
point
15372.7
845.7
865.3
3551.0
753.7

Supply
point
16064.7
902.7
887.3
3782.0
782.2

73.5
71.5
70.2
69.7
68.5

14742.3
779.3
849.8
3317.8
730.2

26-12-14
23-10-14
10/10/2014
31-10-14
26-12-14

WEEKLY DOWN TREND STOCKS

Let the price move above Center Point or Level 3 and when it move back below Center Point or Level 3 then sell with whatever high
registered above Center Point or Level 3 as the stop loss. After selling if the prices moves to Level 2 or below then look to cover short
positions as the opportunity arises. If the close is above Weekly Reversal Value then the trend will change from Down Trend to Up
Trend. Check on Friday after 3.pm to confirm weekly reversal of the Down Trend.
Scrips

RIL COMMUNICATONS
TATA STEEL
ONGC (OIL&NAT.GAS CO
BIOCON
G.E.SHIPPING

Last
Close

80.45
398.15
344.05
417.15
350.85

A Time Communications Publication

Level
1

Level
2

Center
Point

Level
3

Level
4

Demand
point

Demand
point

Supply
point

Supply
point

Strong
above

71.4
370.3
320.5
377.7
315.9

77.5
389.3
337.4
405.9
340.9

80.7
399.3
347.7
423.0
356.0

83.6
408.2
354.3
434.2
365.9

83.8
409.4
358.0
440.0
371.0

Relative
Strength

28.61
34.46
37.21
38.20
38.31

Weekly
Reversal
Value

Down
Trend
Date

88.90
28-11-14
416.90 21-11-14
349.04 14-11-14
441.85 12/12/2014
378.71 12/12/2014

EXIT LIST
Last
Close

Scrip

Supply
point

Supply
point

Supply
point

408.80

Strong
above

Demand
point

ASTRAL POLY TECHNIK

385.25

399.69

417.91 447.40

245.3

B.A.S.F. INDIA

1200.00

1225.57 1252.00 1278.43 1364.00

777.6

BHARAT PETR.COR(BPCL

643.00

675.48

395.5

COLGATE-PALMOLIVE (I

1764.00

1792.30 1820.50 1848.70 1940.00 1314.3

DR. REDDY'S LABORATO

3130.00

3289.96 3361.00 3432.04 3662.00 2086.0

HAVELL'S INDIA

270.10

286.73

298.08

309.42 346.15

94.4

HEXAWARE TECHNOLOGIE

196.35

205.93

210.62

215.32 230.50

126.4

HINDUSTAN UNILEVER

751.00

776.47

786.50

796.53 829.00

606.5

INFO EDGE (INDIA)

848.35

877.52

899.00

920.48 990.00

513.5

INFOSYS

1950.00

2013.36 2049.00 2084.64 2200.00 1409.4

692.00

708.52 762.00

J.M.FINANCIAL

45.65

48.26

49.32

50.39

53.85

30.2

KAJARIA CERAMICS

556.20

564.29

571.55

578.81 602.30

441.3

KAVERI SEED COMPANY

784.15

807.79

819.00

830.21 866.50

617.8

TATA MOTORS

485.05

496.12

504.50

512.88 540.00

354.1

VOLTAS

237.90

252.99

259.10

265.21 285.00

149.4

BUY LIST
Last
Close

Scrip

KALPATARU POWER TRAN

216.15

Demand Demand Demand

point
point
point

202.48

193.43

184.37

Weak
below

Strong
above

Strong
above

155.05

279.2

356.0

PUNTER'S PICKS
Note: Positional trade and exit at stop loss or target whichever is earlier. Not an intra-day trade. A delivery based
trade for a possible time frame of 1-7 trading days. Exit at first target or above.
BSE
Code

Last
Close

Demand
Point

Strong
above

Weak
below

Supply
point

ARROW TEXTILES
GOLD LINE
PDSMFL

533068
538180
538730

23.00
498.00
203.35

22.55
496.50
199.00

23.75
498.00
204.95

21.80
495.10
195.00

25.0
499.8
211.1

SHREE CEMENT

500387

9294.00

9262.00

9347.00

8919.00

9611.5

Scrips

Supply
point

Risk
Reward

ARROW
TEXTILES
GOLD LINE
PDSMFL
SHREE
10039.5 CEMENT
26.9
502.7
221.1

TOWER TALK
At least four top brokers with many retail and online clients are adopting the smart route to provide smarter trading
and investment applications and are on the verge of rewriting the retail participation story.
FM's strict directives to bankers on attaching the assets of defaulters gives the banks the cutting edge. This was
visible in the share prices of PSU banks. 2015 will be the year of the Financial sector in general and PSU banks in
particular.
The second phase of the Make in India campaign starts next week, which will throw up new investment
opportunities for businessmen and corporates.
Infosys is redrawing its strategies with its new head preparing to make it the next gen service provider. Changing
with the times makes it an investment jackpot. No wonder, the big bull calls Infosys a company for all seasons.
FIIs inflows are 10% of DIIs inflows. Such an anamoly seldom happens but whenever it does it is an indication that
the worst is over. Its time to get into a stock picking drive!
A Time Communications Publication

 Heavy investment buying has been reported in the counter of ISGEC Heavy Engineering. With the extended HNIs
and fund buying, the share is expected to touch Rs.8000 mark.
Some investment buying has been reported in the counter of UltraTech Cement. The share is poised to appreciate
by 20%.
Some funds are active buyers in JK Tyre. The share is expected to touch the Rs.750 mark at a reasonable P/E ratio of
10 for FY15.
Shares of the packaging giants, Uflex and Jindal Poly Film have produced excellent H1FY15 results and are poised
to jump by 30% in the medium-to-short-term.
JVL Agro is all set to post an EPS of over Rs.5 in FY15 and Rs.6 in FY16. The share is expected to gain 50% in the
medium-term.
BPL Ltd, the erstwhile consumer electronics giant, is rising once again. It has entered into many new segments like
smart home solutions, medical devices, solutions for Power & Telecom sectors etc. If things go as planned, the stock
could turn out to be a 100- bagger.
The stock of Spicejet is expected to hit the Rs.50 mark once the funds required are in place.
Dolly Khanna, the multibagger stock picker, has accumulated more than 1% equity of Nucleus Software. Watch out
for the scrip to zoom in coming days.
Shivam Auto, the Munjal group auto part maker, is expected to double its revenue & net profit in the next 3 years.
The stock of Aksharchem has been accumulated by people in the know how about its operations. It is likely to post
a quarterly EPS of Rs.20 in the quarter ended 31 December 2014.
BF Investment, BF Utilities, Kalyani Steel all Baba Kalyani group companies are expected to double from the
current levels according to the market grapevine.
US aircraft manufacturer Boeing is keen on acquiring Axiscades Engineering, which is into aircraft designing and
boasts of Boeing as its top client. Investment bankers over that the deal could happen at 50% premium to the CMP.
An Ahmedabad based analyst recommends Puneet Resins and Shree Dinesh Mills as hot buys for the week.

BEST BET

Sharon Bio-Medicine Ltd

Code: 532908 Last Close: Rs.25.40
By Sanjiv Pednekar
Incorporated in 1989, Sharon Bio-Medicine Ltd. is a fast growing Pharmaceutical company. involved in manufacturing
intermediates and finished dosages. It also has a division operating under the name SA-Ford, which is OECD GLP
certified and specializes in pre-clinical and toxicology studies on animals. Growing at around 50% year-on-year, Sharon
has a work force of over 500 personnel operations spanning across seven locations in India and one overseas location
and a market presence in over 45 countries. Sharon has predominantly been known for its strengths in the development
& manufacture of pharmaceutical products in the category of intermediates and active pharmaceutical ingredients
(APIs). In 2007, it ventured into the finished products segment and set up oral solid dosage manufacturing facility at
Dehradun, in Uttarakhand. Since then, its formulation business is increasing its contribution to the company's business.
Its long term focus is to be an integrated service provider for its customers and develop competitive advantage for its
customers throughout its life cycle.
Equity: Sharon's equity base is reasonable at Rs.21.11 crore when we compare it with its FY14 turnover of Rs.1313.76
crore and net profit of Rs.69.61 crore.
Reserves & Book Value: The company has huge reserves of Rs.242.71 crore and the Book Value of the share has risen
from Rs.23.10 in FY13 to Rs.33.60 in FY14.

A Time Communications Publication

Dividend: The company has consistently paid dividends between 10% to 18% for the last 9 years. It has declared 18%
dividend for FY14 as against 15% in FY 13.
Face Value: The face value of its share is Rs.2 and it is listed on both the BSE and the NSE.
Bonus History: The company had issued liberal bonus of 1:1 in 2014.
Market Capitalization: Sharon Bio had a market capitalization of Rs.360 crore an on 23-12-2014.
Share Holding: The Promoters hold 60.20%, FIIs hold 1%, private corporate bodies hold 31.09% and the investing
public hold 8.70%
Financial Performance: Sharon BioMedicine has declared highly encouraging
financial performance over the last five years.
It recorded an impressive performance for
FY14, turnover rose 24% from Rs.1059.50
crore in FY13 to Rs.1313.76 crore in FY14.
Operating
profit,
too,
moved
up
proportionately from Rs.120.11 crore in FY13
to Rs.157.06 crore in FY14. After making
higher provisions for interest at Rs.53.13
crore as against Rs.42.77 crore in FY13, gross
profit of the company improved by over 35%
from Rs.78.22 crore in FY13 to Rs.105.66
crore in FY14. The company paid higher tax
amount at Rs.15.13 crore in FY14 as against
Rs.12 crore in FY13 and has made higher
provisions for depreciation at Rs.15.35 crore
as against Rs.12.04 crore in FY13.
The company has improved its net profit by
over 28% from Rs.54.19 crore to Rs.69.61
crore in FY14.

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It has maintained its financial performance in

Q2FY15 whereby its turnover increased marginally from Rs.315.40 crore in Q2FY14 to Rs.324.91 crore in Q2FY15. The
operating profit improved by 16.61% from Rs.31.38 crore to Rs.36.58 crore in Q2FY15. Gross profit rose marginally
from Rs.24.13 crore to Rs.25.65 crore in Q2FY15. After making lower provisions for taxation at Rs.3.12 crore for Q2FY15
as against Rs.3.38 crore in Q2FY14, and after making lower provisions for depreciation at Rs.3.02 crore as against
Rs.4.03 crore in Q2FY14, net profit of the company surged by over 17% from Rs.15.43 crore in Q2FY14 to Rs.18.10 crore
in Q2FY15. For FY15, the company is expected to improve its EPS from Rs.6.59 to Rs.8 on a conservative basis.
Market Price: Currently, Sharon Bio's share is trading around Rs.34 and is in a declining mode. After touching a 52week low at Rs.31.50, it moved up sharply to touch a high of Rs.90 within a few months. Profit booking at higher levels
brought it to the current level. From current level the downward risk is minimum. Although the technical side is weak,
its fundamentals are very strong. Being an investor friendly share, it is unlikely to stay at a low level for long. Pharma
Industry's P/E ratio is around 18. With an expected EPS of Rs.8 in FY15, it discounts the share price by less than 5.
Investors are therefore advised to accumulate this share at every decline in small lots only to reap rich rewards within a
year.

STOCK ANALYSIS

Divyashakti Granites Ltd: For solid gains

By Devdas Mogili
Divyashakti Granites Ltd (DGL) is a 23-year old Hyderabad (Telangana) based company established in 1991. The
company is engaged in the manufacture of polished granite slabs, tiles and monuments. Its manufacturing units are
located in the Narsapur mandal of Medak district in Telangana State. Mr. N.Hari Hara Prasad is the Managing Director of
the company.
A Time Communications Publication

The company is engaged in manufacturing and sale of polished granites. It processes quality raw blocks not only from
India but also from Brazil, Norway, Finland, Ukraine, Saudi Arabia, South Africa, Angola, Madagascar and other African
countries etc. DGLs unique selling position (USP) lies in its capability to produce exotic stones in exquisite colors,
textures and finishes.
Divyashakti Granites was the brain child of the Groups former Chairman, the late N.V. Rattaiah, a civil engineer by
profession who conceptualized, developed and managed landmark buildings in Hyderabad that have gone on to change
the very cultural and social milieu of the city. What began as an auxiliary division to provide granite for his construction
projects grew at an explosive pace to become a 100% Export Oriented Granite Processing Unit and an undisputed leader
in South East Asia.
In FY14, the company exported polished granite slabs and polished monuments. Its granite slabs include baltic brown,
black galaxy, black pearl, blue pearl, blue pearl silver and butterfly green. After making a mark in the US market, DGL
plans to expand its operational ambit to countries like Canada, France etc.
Performance: For FY14, it reported a total income of Rs.65.90 crore with net profit of Rs.9.89 crore posting an EPS of
Rs.9.60.
Financial
Highlights:

( Rs in lakh)

Particulars

Q2FY15

Q2FY14

H1FY15

H1FY14

FY14

Total Income

1940.64

2046.72

3688.62

4188.84

6590.08

Total Expenses

1482.96

1516.54

2807.09

2872.21

5075.63

Other Income

5.66

5.81

6.76

6.65

10.48

Finance Cost

1.45

2.25

3.04

4.99

8.99

Tax Expenses

113.69

201.71

223.22

288.16

526.90

Net Profit

348.20

332.03

662.03

1030.13

989.04

Equity
(FV:Rs.10)

1030.08

1030.08

1030.08

1030.08

1030.08

Reserves

6628.07

6187.90

6628.07

6187.90

5966.03

EPS (Rs)

3.38

3.22

6.43

10.00

9.60

Latest Results: The company recorded encouraging Q2FY15 results for the quarter ended 30 September 2014 as it
registered a Total Income of Rs.19.41 crore with net profit of Rs.3.48 crore posting an EPS of Rs.3.38 as against Rs.3.22
recorded in Q2FY14.
Financials: DGL has an equity base of Rs.66.28 crore with a share book value of Rs.74.35. It is a zero debt company with
RoCE of 23.13% and RoNW of 15%. The stock is trading at 0.61 times its book value.
Share Profile: The companys share with a face value of Rs.10 is listed and traded on the BSE under the B group and hit
a 52-week high/low Rs.57/Rs.22.05. At its current share price Rs.42.65, DGL has a market capitalization of Rs.44.14
crore against the total revenue of Rs.66 crore indicating attractive market cap:sales ratio.
Dividends: The company has been paying dividends as follows: FY14-15%, FY13-15%, FY12-15%, FY11-15%, FY1015%, FY09-15%, FY08-15%, FY07-15%, FY06-15%, FY05-15%, FY04-10%, FY03-10%.
Shareholding Pattern: The promoters hold 55.16% equity stake while the balance 44.84% is with non-corporate
promoters and the investing public.
Prospects: India is among the leading countries in mining and export of granites and is rich in granite reserves. Indian
granites are the most sought-after and extensively used in building construction and massive structural works
throughout the world. It is well-known in the international market not only for its elegance and aesthetic quality but also
for its durability.

A Time Communications Publication

The Granite Industry has received wide publicity and corporate importance in the last few years and has now emerged
as a thrust export area with several corporate houses, supported by expert professionals trained in all aspects entering
the sector with sophisticated world-class machinery and making it an organized one.
India is one of the leading nations in the production and export of Granite and other stones. Granite is a very hard
crystalline, igneous or metamorphic rock primarily composed of feldspar, quartz and lesser amounts of dark minerals.
India has vast resources of granite with about 110 varieties of different colours and textures such as black, grey, pink,
multi coloured, etc. These varieties are used to produce monuments, building slabs, titles, surface plates etc. However,
the popular varieties are mainly found in South India.
Granite in the form of slabs and tiles has several attractive features, which, inter alia, includes extra-fine mirror-polish,
scratch-free glossy surface and durability. Granite compares well with other floor and wall application materials such as
ceramics and marble. Mining for granite is done manually.
In the light of the above, companies like Divyashakti Granites, which have carved out a place for themselves in the export
markets have bright future going ahead. Exports constitute major portion of their revenues and the offtake is expected
to be robust owing to overall growth prospects on the domestic and export fronts.
Conclusion: Ever since its inception in 1991, Divyashakti Granites Ltd. has carved out a niche for itself for producing
world-class granites. Despite its short history, it has grown into one of the largest 100% Export Oriented Granite
Processing Units in a wide spectrum of colors, textures and finish, to customers world-wide.
At its current market price of Rs.42.65, the share discounts less than 4.5 times its FY14 EPS of Rs.9.60. In view of its
encouraging performance, unique selling proposition, regular payouts, good export presence, zero debt status, attractive
price:book value and market cap:sales ratio, the share offers value for money. The share may be added to ones portfolio
for significant gains in the medium-to-long-term.
Moreover, the share price is available at below its book value indicating good margin of safety even for risk averse
investors. Its peer group companies like Pokarna Granites are quoting at a P/E multiple of over 40 whereas Divyashakti
Granites is available at a meager P/E multiple of less than 5 indicating the scope for solid gains in the medium-to-longterm from the counter.

MARKET REVIEW

Momentum leads Dow to 18,000

By Devendra A. Singh
The BSE Sensex (30-share index) settled at 27,241.78 declining 130.06 points and the NSE Nifty closed at 8,200.70
edging lower 24.50 points for the week ended Friday, 26 December 2014. The key bourses fell in 2 out of the 4 trading
sessions last week.
Equity markets tumbled for the week on anxiety of the global worries that still hover around the Indian markets. The
benchmark Sensex witnessed profit booking on the depreciation of the Indian rupee (INR) against the US Dollar due to
the widening current account deficit (CAD) and impact of the economic meltdown in Russia and China hampering
investors sentiment.
On the other hand, the US benchmark Dow Jones Industrial Average (DJIA) hit a milestone on Tuesday, 23 December
2014, by crossing the psychological 18,000 mark for the first time as market participants stayed bullish on the US
economic growth data. The Dow jumped above 18,000 level and is up about 175% from a 12-year closing low hit on
Monday, 9 March 2009.
The net investment by Foreign Institutional Investors (FIIs) into equities stood at Rs.3,430 crore (US $570 million)
during 1-19 December 2014, while the total inflows into the debt market during the same period were Rs.10,808 crore
(US $1.75 billion) taking the total to Rs.14,239 crore (US $2.3 billion) the latest data showed.
Moreover, FIIs are pumping funds into debt in order to take advantage of the higher yields.
On the Indian Rupee front, for the last one and a half month the INR has declined against the US Dollar at an accelerating
pace in the latter part of November and December 2014.

A Time Communications Publication

The Rupee has been depreciating since the beginning of November 2014. Other major currencies globally have also
plunged against the US Dollar.
There are many factors pulling down the Rupee such as the rising CAD, the US Dollar getting stronger, investors
sentiment hampered due to the global crisis and correction in Brent crude prices.
On the US macro-economic front, data showed that the worlds largest economy has expanded at the fastest and
strongest pace in more than a decade as consumers and businesses spent more than previously estimated. Also, a
stronger job market, a stronger housing market and rising stocks boosted the growth.
The US Gross Domestic Product (GDP) grew at a 5% p.a. from July-September 2014-the biggest advance since the Q3 of
2003, the Commerce Department data showed in Washington. This growth exceeded the prior quarters rise of 4.6%.
Retail sales leapt better-than-expected 0.7% in November 2014 - the strongest growth that the Commerce Department
has reported since March 2014.
The improved reading was a result of an increase in personal consumption that was more than the Commerce
Department had initially reported, as well as greater federal, state and local government spending, rising exports and
residential fixed investment. Imports, however, decreased.
A separate report showed orders for US durable goods unexpectedly declined in November 2014 as corporate
investments stagnated.
Last week, the US Federal Reserve on Wednesday, 17 December 2014 signalled that it was on track to raise interest
rates sometime in 2015, dropping a pledge to keep rates near zero for a considerable time in a show of confidence in the
US economy.
After a week of turbulence in global financial markets, the Fed looked firmly beyond economic difficulties in the Euro
zone, Japan and Russia and offered a mostly upbeat assessment of the US economys prospects.
Further, the crude oil scenario shows that the Brent crude prices fell below $60/barrel and are hovering around $5960/barrel its weakest level since May 2009 on slowing of Chinese factory activity.
Saudi Arabia said, OPEC will not cut oil production even if the price drops to $20/barrel and it is unfair to expect the
cartel to reduce output if non-members do not.
The decision sent global crude prices tumbling, worsening a price drop that has seen them fall by around 50% since June
2014. Slower demand growth and a stronger dollar have also contributed to the slump.
Last week, the central bank of Russia hiked its key interest rate by 6.5% points to 17% on Tuesday, 16 December 2014
in an attempt to stop the rouble from depreciating. The US dollar is strengthening and becoming stronger against most
currencies.
Key indices surged on Monday, 22 December 2014, on buying by foreign funds on the US Fed policy outlook. The Sensex
rallied 329.95 points (+1.21%) to close at 27,701.79. The Nifty was up 98.80 points (+1.20%) to close at 8,324.
Key indices fell on Tuesday, 23 December 2014, on the global worries and depreciation of the Indian rupee. The Sensex
tumbled 195.33 points (-0.71%) to close at 27,506.46. The Nifty was down 57 points (-0.68%) to close at 8,267.
Key indices extended the correction on Wednesday, 24 December 2014, as FIIs kept selling-off equities. The Sensex
plunged 297.85 points (-1.08%) to close at 27,208.61. The Nifty was down 92.90 points (-1.12%) to close at 8,174.10.
The Indian stock market was closed on Thursday, 25 December 2014 on account of Christmas.
Equity markets managed to settle higher on Friday, 26 December 2014, on buying of stocks. The Sensex registered small
gains of 33.17 points (+0.12%) to close at 27,241.78. The Nifty was up 26.60 points (+0.33%) to close at 8,200.70.
The Sensex lost 130.06 points to close at 27,241.78 last week.
Indian corporate will start revealing their Q3FY15 earnings from next month. Market participants will closely watch the
management results, which could cause a revision in their future earnings forecast of the company in FY15.
Investors will keep watching Russia and China economic behavior, which is another crucial factor that will decide the
global market movements in the near-term.
The Markit economics is scheduled to reveal Chinas HSBC PMI figures for December 2014 on Wednesday, 31 December
2014.
A Time Communications Publication

10

GURU SPEAK

Bears fight back!

The headline Market Set to Revive in last weeks column was apt as the market revived on the first day itself i.e.
Monday, 22 December 2014, despite the F&O expiry worries scheduled on Wednesday, 24 December 2014 and the
Christmas holiday on next day 25th December 2014.
The BSE Sensex rose to a high of 27725.27 followed by CNX Nifty to 8330.95 on 22 December 2014
thus recovering almost 50% of the loss that the market experienced at its low of 26469 on
Wednesday, 17 December 2014. The Sensex fell from a high of 28827 to a low of 26469 i.e. a loss of
2353 points till Wednesday, 17 December 2014 in just a week or so, which created a panic and
alarm in the market and nobody expected the recovery to be so strong and so fast.
BSE Sensex recovered 1256 points from 17 December low in intra-day trading in 5 working
sessions ending on Monday, 22 December 2014 providing a strong relief rally to soothe the market
By G. S. Roongta
sentiment. However, there were several important events like the poll results in Jharkhand and
Jammu & Kashmir that were bound to impact the stock markets if the verdict went against the BJP especially as it was
faced with serious problems in Parliament as the proceedings in the Rajya Sabha stood paralyzed with frequent
disruptions and adjournments.
Besides, there was the F&O expiry scheduled for Wednesday, 24 December 2014, when large scale outstanding positions
were likely wind-up or roll-over to the January 2015 series. Since the market was in a bull grip, the bull position needed
to be wound-up first as bears who had short-sold recently were waiting to cover their positions at a profit.
Hence after a handsome gain of 330 Sensex points on Monday, 22 December 2014, the market again started reacting to
face the F&O expiry as well as the poll results due on Tuesday, 23 December 2014. As a result, the Sensex tumbled 195
points to close at 27506.46 on Tuesday. Correspondingly, the Nifty fell 57 points at 8257.
On Wednesday, 24 December 2014, the bulls liquidated part of their bull positions as expected. The Sensex lost 297.85
points to close at 27208.61. The roll-over in Nifty Futures was reported to 65% and it varied between 60-70% for
individual stocks.
Thus the market wiped out Mondays gain of 330
points and slipped into the red by 163 points in the
Roongtas Panchratna
first three days of trading, which could not be
recovered on the last day of trading on Friday, 26
is almost risk-free at 80:20: :Reward: Risk ratio
December 2014, as the market was closed on
Although the stocks recommended in the Panchratna
Thursday, 25 December 2014, on account of
quarterly
newsletter launched on 1st April 2014 are for the
Christmas. On Friday, the Sensex closed with a gain of
long-term upto 3 years, the 15 stocks featured have already
33.17 points at 27241.78 while the Nifty gained 26.60
outperformed till 10th December 2014 as follows:
points to close at 8200.70. This time, the roll-over in
the bear positions was higher indicating a tough battle
% gains at High
No. of stocks
ahead between the bulls and the bears.
> 100%
2
However, the market closed with a loss of 130.06
76-91%
3
points last week as against a gain of 21 Sensex points
> 54%
2
in the earlier week. On the Nifty, the loss for the week
24-35%
4
was 24.50 points and the four days of trading
> 17%
1
comprised two days of gain and two days of losses.
3.5-8%
3
The winter session of Parliament has come to an end
15
and it stands adjourned till the next budget session in
2015. The NDA Government has, therefore, decided to
Thus all the 15 stocks have gained with some in just a matter
issue an ordinance both for the Land Act bill and the
of few days only. Their long-term outlook is even brighter.
Insurance bill since it could not succeed in passing
Now get your copy of the 4th edition of Roongtas Panchratna
them in the Rajya Sabha. Both these bills are very
due on 1st January 2015.
important from the business & industry point of view
and are a matter of prestige for the Narendra Modi
To subscribe contact us on 022-22616970 or email us at
Government, which has won the elections on the
moneytimes.support@gmail.com
slogan Sab ka saath, sab ka vikaas and cannot afford
to delay the development process.
The government is moving fast to start the reform process while allotting coal blocks by March 2015 and was keen to
enact the Land bill and the Insurance bill but has no option but to adopt the ordinance route.

A Time Communications Publication

11

In corporate developments, the Aditya Birla Group is moving fast to enhance its cement capacity through mergers and
acquisitions to reach 70 MMTPA as it has recently acquired the 4.5 MMTPA capacity of the Jaypee group for Rs.5,700
crore. As a result, the share of J.P Associates rose 10% on Wednesday 24 December 2014 whereas the UltraTech stock
rose by 70 points on this news.
With a clear majority in Jharkhand and the second largest party in a neck-to-neck fight with the PDP in Jammu &
Kashmir, the BJP has emerged stronger on the national stage and likely to pursue its agenda of development more
aggressively. Going forward, the next three months till March 2015 are full of excitement from the stock market point of
view. With the dawn of the New Year 2015, the following events are significant for stock markets:
1. From 10 January 2015, the Q3FY15 corporate results will start pouring in which are likely to be better than Q1FY15
and Q2FY15
2. Thereafter, the government will be busy preparing the Union Budget 2015-16 and the market will be full of
expectations and enthusiasm
3. Government divestment of Rs.30-40 thousand crore in PSU units
4. Coal block allotment is likely to be completed by March 2015 as per the supreme court directive
5. RBIs monetary policy review in February 2015 will soften interest rates considering the zero WPI
6. Economic survey of 2014-15 and guideline for 2015-16
7. Railway budget followed by the Union Budget, which will be the NDA governments full budget unlike last year when
it inherited the UPA governments budget proposals. Hence it is sure to contain industry friendly proposals
8. Fiscal deficit in 2015-16 will be considerably lower on account of the cutting subsidy on petrol, diesel and fertilizers
9. Since government spending in 2014-15 was lower, it will help contain fiscal deficit at 4.1% as budgeted
10. Stock market sentiment to remain buoyant as FIIs will remain net buyers and crude oil prices will be at historical
lows benefitting trade and industry
11. With lower lending rates in 2015-16, GDP growth will rise above 6.5% and refract huge investments in power and
infrastructure and breathe new life into projects stalled for want of finance
These developments will determine the mood of the market in 2015-16. Already, the Nifty Futures premium for January
2015 series is quoting at a premium of Rs.65 as are several stocks like Grasim. Hence the market is likely to open bullish
initially but profit booking at higher levels is sure to emerge.
The Reserve Bank of India has announced 30 June 2015 as the final deadline for exchanging high denomination notes
issued before 2005. This move is perhaps geared to curb the circulation of forged currency as also stem the circulation of
black money in the economy. This is a good step to unearth black money in the economy.
The 4th edition of Panchratna is ready and will be released on 1st January 2015 and like the previous three editions
should reward subscribers with handsome returns. This time I have selected low priced stocks with sufficient liquidity
at all times so that both buying and selling can be carried out with ease. Already subscribers have enjoyed stupendous
profits by investing in the stocks recommended in these issues.

STOCK WATCH
By Amit Kumar Gupta

CARE Ltd. (Code: 534804) (CMP: Rs.1439.75) (TGT: Rs.1570)

Credit Analysis and Research (CARE) Ltd. is a credit rating company that offers a range of rating and grading services
across a diverse range of instruments and industries and also provides general and customized industry research
reports. The companys services include grading services, research services, technical assistance services and risk
management solutions. The companys grading services include initial public offer (IPO) grading, equity grading, and
grading of various types of enterprises, including energy service company (ESCO), renewable energy service company
(RESCO), shipyards, maritime training institutes, construction companies and rating of real estate projects among
others. In July 2014, the company acquired CARE Kalypto Risk Technologies and Advisory Services Private Ltd.
CARE Ltd., the second largest company by market share, is a pure play on the rating business with ~99% (Rs.230 crore)
of its FY14 core revenue generated from the rating segment. The highlight of CAREs business is its best-in class EBITDA
margin of 60%+ and PAT margin of 50%+. Its business model is asset light in nature with not much capex (Rs.10-15
A Time Communications Publication

12

crore) while it generates strong operating cash flows. Post listing, its dividend payout ratio has improved from 30%
(FY12) to 63% (FY14), which may grow to ~73% by FY17E. It paid a special dividend of Rs.65 in H1FY15 already.
Considering the improving economic outlook with the expected upturn in the investment cycle, peaking of interest rates
and gradual structural development of the bond market, we have factored in 18% PAT CAGR in FY14-17E to Rs.210
crore vs. 12% CAGR seen in FY11-14. We initiate coverage with a BUY rating.
CARE earns the best margin among rating agencies with 64% EBITDA margin and 56% PAT margin in FY14. These
strong margins can be attributed to: i) relatively lower employee cost ii) high proportion of large ticket bank loans &
bonds (high margin business) and iii) offices being largely owned saving on lease rents. Going ahead, margins are
expected to decline from 64% in FY14 to 62% by FY17E owing to its rising focus on the low margin SME business and
rising staff costs.
CARE Ltd. has been maintaining >Rs.400 crore of cash equivalent on its balance sheet that is 10% of its market cap.
Efficient utilisation for propositions like acquisition, higher dividend or buyback of shares, will be positive for
shareholders.
CARE has emerged as a strong player in the rating business with strong margins & improving market share with best
brand recall after Crisil. It has a strong RoE of 27% for FY14 and potential to enhance it to 46% by FY17E. We value
CARE at 30x FY17E EPS (~50% discount to Crisils core rating business multiple) and advise to buy the stock for a target
price of Rs.1568.
Technical Outlook: CARE Ltd. is very strong on the charts and has been making higher highs and higher lows in the
daily chart and very strong in all time frames with a rounding bottom pattern. The stock is also trading above all
important moving averages like 200-DMA & 100-DMA.
Start accumulating at this level of Rs.1440 and on dips to Rs.1430 for medium-to-long-term investment and price target
of Rs.1570+ in the next 6 months.
*******

Hi-Tech Gears Ltd. (Code: 522073) (CMP: Rs.276.85) (TGT: Rs.325)

Hi-Tech Gears Ltd was incorporated in 1986 and is an auto component manufacturer engaged in the business of gears
and transmission components.
It manufactures gears and transmission components. Its principal products include gears and transmission shafts and
timing gears. Hi-Tech (E-Soft) is a division of the company that is engaged in the business of engineering software
solutions. The companys other products include precision forgings, two wheeler transmission components, engine and
transmission components, and PTU shafts. The companys plants are located in Bhiwadi in Rajasthan and Manesar in
Haryana.
For Q2FY15, it recorded a turnover of Rs.109.6 crore
as against Rs.89.7 crore in Q2FY14 with EBITDA of
Rs.12 crore in Q2FY15 as against Rs.13.4 crore in
Q2FY14 leading to a net profit of Rs.3.1 crore against
Rs.3.7 crore in Q2FY14.
The company is changing the name by prefixing 'The'
making it 'The Hi-Tech Gears Ltd' subject to
necessary approvals & sanctions.
For H1FY15, it registered a growth of 18.32% in net
sales to Rs.209.2 crore from Rs.176.8 crore in
H1FY14.
The Debt:Equity Ratio (DER) of the company was
0.15 as on 31 March 2014.

Fresh One Buy Daily

Fresh One Buy Daily is for investors/traders who are keen to
focus and gain from a single stock every trading day.
With just one daily recommendation selected from stocks in
an uptrend, you can now book profit the same day or carry
over the trade if the target is not met. Our review over the
next 4 days will provide new exit levels while the stock is still in
an uptrend.
This low risk, high return product is available for online
subscription at Rs.2500 per month.
Contact us on 022-22616970 or
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Net Sales and PAT of the company is likely to grow at a CAGR of 11% and 3% over 2013 to 2016E respectively.
Outlook & Conclusion: Earning per share (EPS) of the company for FY15E and FY16E is estimated at Rs.8.71 and
Rs.9.38 respectively. At the current market price of Rs.241.85, the Hi-Tech Gears stock trades at a P/E ratio of 27.77x
FY15E and 25.78x FY16E respectively.
A Time Communications Publication

13

On the basis of EV/EBITDA, the stock trades at 9.04x for FY15E and 8.4x for FY16E. Price:Book Value of the stock is
expected to be at 2.88x and 2.7x respectively for FY15E and FY16E. We advice to buy it with a target price of Rs.320, for
medium-to-long-term investment.
Technical Outlook: Hi-Tech Gears is very strong on the daily chart and has been making higher highs and higher lows
and is very strong in all time frames with an uptrend channel pattern. The stock is also trading above all important
moving averages like 200-DMA & 100-DMA.
Start accumulating at this level of Rs.277 and on dips to Rs.240 for medium-to-long-term investment and price target of
Rs 325+ in the next 6 months.

Stock Watch
PERFORMACE REVIEW (April July 2014)
In keeping with its unblemished performance in 2013-14, the Stock
Watch scrips in 2014 15 have begun to perform equally well.
Given below is the review of the first 13 issues of 2014 15 wherein
20 out of 26 scrips have posted gains of over 50%
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26

Date of
Recom.
12-05-14
21-04-14
28-04-14
07-04-14
12-05-14
14-04-14
28-04-14
09-06-14
07-07-14
05-05-14
23-06-14
14-04-14
16-06-14
14-07-14
26-05-14
02-06-14
07-04-14
23-06-14
07-07-14
19-05-14
30-06-14
14-07-14
16-06-14
09-06-14
02-06-14
21-04-14

Scrip Name
National Building Construction Corp.
KNR Constructions
Gabriel India Ltd
V-Guard Industries
TVS Motor Company
Can Fin Homes
CCL Products
PTC India Financial Service (PFS)
Blue Star Infotech
Finolex Cables
Banco Products
Info Edge (India)
Dishman Pharmaceuticals
Gujarat Fluorochemicals
Techno Electric & Engineering
AIA Engineering
Sun Pharmaceuticals
DCB Bank
Pidilite Industries
Marico Ltd
Suprajit Engineering
Unichem Laboratories
Jaypee Infratech
Voltas Ltd
Tata Consultancy Service
IPCA Laboratories

Recom.
Price (Rs.)
230.00
99.50
34.95
464.00
111.00
231.00
54.80
29.00
181.00
136.00
96.00
548.00
110.00
484.00
237.00
752.00
572.00
78.00
333.00
227.00
105.00
196.00
31.00
218.00
2144.00
791.00

Target
(Rs.)
265
130
46
520
135
250
75
38
240
165
125
690
160
550
290
900
640
85
370
250
125
250
45
250
2300
875

High
Acheived
922
333
99
1150
266
548
167
65
387
284
184
1015
197
816
394
1230
932
124
515
350
146
268
42
286
2840
907

Gain
%
300
235
183
148
140
137
131
124
114
109
92
85
78
69
66
64
63
59
55
40
39
37
35
31
32
15

EXPERT EYE
By Vihari

Stylam Industries: Laminating gains

Shares of branded products are attracting sizable investment buying. For instance, shares of Century Ply, Greenply, La
Opala etc have been accumulated by discerning investors in the last one year and lifted their market price dramatically.

A Time Communications Publication

14

Stylam Industries Ltd. (SIL) (Code: 526951) (Rs.75) is one such share, which can be can be acquired for the decent
gains in the long-term.
Incorporated in 1991 as a private limited company,
Golden Laminates, SIL started its journey to success by
manufacturing luxury grade decorative laminated
sheets for both residential as well as industrial
applications. The plant is located at Chandigarh and SIL
is recognized as an Export House by the Government of
India. Combining the industrious efforts and wide
experience of its promoters, SIL now deals in industrial
as well as advanced grade laminates i.e. post forming
and Antistatic laminates under the brand name
STYLAM. SIL had tapped the capital market in 1996
and is promoted by Mr. Jagdish Gupta.
Using advanced technology and modern equipment to
assure maximum production of laminates in minimum
time it has a capacity of 64 lakh sheets per annum. It
deploys sophisticated moulds of various finishes from
France & Germany to ensure the development of the
best laminates.
SIL is ISO 9001:2008 certified which indicates the
integrity, quality and reliability of the company. The
design and efficiency of its laminates have won the
company the award of CE Marking and have helped it
retain a dominant market share in exports, which
constitute over 55% of sales.
During FY14, net profit soared 66% to Rs.6.8 crore on
34% higher sales of Rs.187.5 crore and the FY14 EPS
stood at Rs.9.3 Vs Rs.5.6 in FY13. In view of the
expansion and diversification, SIL did not declare any
dividend. During Q2FY15, net profit rose 5% to Rs.2.3
crore on flat sales of Rs.53 crore and the quarterly EPS
stood at Rs.3.2. For H1FY15, net profit jumped 50% to
Rs.4.5 crore on 18% higher sales of Rs.89 crore and the
H1FY15 EPS is Rs.6.1.

Invest with G.S. Roongta

in 2015
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The fourth and final quarterly edition will be
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Considering the buoyant demand for its products and to improve its market share, SIL had enhanced the capacity from
48,00,000 to 64,00,000 sheets per annum at a cost of Rs.15 crore.
SIL is diversifying into the service sector and venturing into BPO activities at an estimated capital outlay of Rs.33 crore.
It has taken a term-loan of Rs.21 crore for the project and Haryana State Industrial Infrastructure Development
Corporation (HSIIDC) has allotted 5572 sq. metres of land at the Panchkula Technology Park, Haryana for setting up the
BPO. Revenue from this project will commence from 2015-16, which will strengthen the leverage of the company.
SILs equity capital is Rs.7.3 crore and with reserves of Rs.27.3 crore, the book value of its share works out to Rs.47. The
value of the gross block including capital work-in-progress of Rs.18.4 crore works out to Rs.72 crore. Its DER at 2:1 is a
bit high as SIL had taken loans in FY13 for the aforesaid capex. The promoters hold 58.8% in the equity capital. PCBs
hold 8.3%, which leaves 32.9% with the investing public.
The Decorative laminate segment is forecast to grow 5.5% per annum to 12.4 billion square feet in 2015, in USA alone.
Demand will also be stimulated by the consumer perception of decorative laminates being the workhorse surfacing
material that provides a low-cost, low maintenance, durable surface.
The major end-use segments are Residential Construction, Residential Replacement and the Commercial Sector i.e.
Furniture and interior infrastructure. With the sharp growth in the real estate sector on the back of higher disposable

A Time Communications Publication

15

income of the countrys middle class, exponential growth in the demand for interior infrastructure products is
anticipated.
Since cement, plywood, laminates and steel related products are an essential part of construction right from the first
brick to the final stage of furnishing the demand for these products is directly related to the growth of infrastructure and
the real estate sector, the demand for companys products is expected to remain buoyant.
SIL has penetrated into
newer markets for
exports. In the domestic
market, it has expanded
the customer base by
the offering a wide
range of products for all
sorts of customers i.e.
premium products for
high-end
customers,
and value for money
products for the mass
of
middle-class
customers.
Continuous
improvement in SILs
business will lead to
higher revenue and
profitability
going
forward. Based on the
current going, SIL is
expected to post an EPS
of Rs.13-14 in FY15.
At the current market
price of Rs.75, the share
is available at a P/E of
just 5.8 on FY15
earnings.
A
conservative P/E of just
8 will take its share
price to Rs.104 in the
medium-term. The 52week high/low of the
share
has
been
Rs.104/18.

Releasing on 1st January 2015

Winners of 2015
Here is the Performance Review of Winners of 2014
th

Like the past 8 years, the 9 year performance of Winners of 2014 was incomparable.
Of the 20 stocks identified 12 months back, 18 have achieved the Book Profit level. The other 2 were
also in profit and may still achieve the target by year end.
Sr. Scrip Name
Close
Book Profit
High of
Profit %
No.
31-12-13
Level
2014
to High
1 Apollo Hospitals Ent.
946
1105.7
1246.50
31.77
2 M&M Finance Serv.
321.05
391.1
342.00
6.53
3 Bata India
1057
1199.3
1413.40
33.72
4 Dr. Reddy's Labs
2533
2817.7
3666.25
44.74
5 Sundaram Finance
625.5
684.7
1400.00
123.82
6 Tata Consultancy Ser.
2170.95
2534.3
2839.70
30.80
7 Accelya Kale Solution
761
943.3
1026.15
34.84
8 IPCA Laboratories
721
822.7
906.85
25.78
9 Bajaj Finance
1574
1788
3385.00
115.06
10 Agro Tech Foods
549.55
614.6
704.00
28.10
11 HCL Technologies
1263
1481.3
1776.25
40.64
12 ING Vysya Bank
611
717
873.00
42.88
13 Havell's India
158
177.14
346.90
119.56
14 KPIT Technologies *
171.55
207.8
191.00
11.34
15 Zensar Technologies
355.85
417.5
685.00
92.50
16 F D C
129.4
155.6
170.70
31.92
17 Apollo Tyres
107.15
128.6
242.95
126.74
18 CMC
1632
1828.3
2407.00
47.49
19 Arvind
136.7
162.7
341.50
149.82
20 Tech Mahindra
1838.05
2177
2734.00
48.74
* On 11-12-14, KPIT Technologies rose to a high of Rs.198 thus gaining 15.42%.

Close
10-12-14
1131.45
322.55
1282.40
3401.60
1250.45
2507.90
996.50
712.25
3195.60
602.55
1572.55
853.35
310.20
182.80
596.60
153.40
227.70
1919.05
272.60
2571.50

Current
Profit/Loss %
19.60
0.47
21.32
34.29
99.91
15.52
30.95
-1.21
103.02
9.64
24.51
39.66
96.33
6.56
67.65
18.55
112.51
17.59
99.41
39.90

For just Rs.6000, book your copy of the 10th edition and welcome the New Year in
the company of Winners of 2015!
For subscription details contact us on 022-22616970 or
email us at moneytimes.support@gmail.com

*********

Lincoln Pharma: For decent gains

The shares of Lincoln Pharma Ltd (LPL) (Code: 531633) (Rs.71) is recommended for decent gains in the long term
because of its improved fundamentals.
Incorporated in 1979, LPL has a 30,000 sq. mtrs. ultramodern manufacturing facility near Ahmedabad covering all the
major dosage forms like Tablets, Capsules, Injectables, Syrups, Ointments, etc Ahmedabad.
LPL came out with a public issue in February 1996 to part-finance its project. Zullinc Healthcare and Lincoln Parenterals
are its subsidiaries. LPL was promoted by Mr. Rajani G. Patel Lincoln Parenterals Pvt. Ltd., Karnavati Distributors Pvt.
Ltd., Down Town Travels and Shelavi Paper Mills are the other group companies.
It has three different buildings for Tablets, Capsules and Injectables and a separate building for Quality Control. An
ultramodern laboratory with state-of-the-art equipments ensures in-house quality for each product. Its products are
A Time Communications Publication

16

designed for all therapeutic segments with special emphasis on Gynaecological and Orthopaedic specialties. It is one of
the fastest growing pharma players focused on Generics & Speciality products, reaching customers in over 50 countries.
Manufacturing facilities at Lincoln Pharmaceuticals are in accordance with WHO-GMP standards. LPL is accredited with
GMP and ISO 9002 certifications.
LPL has successfully developed an overseas network for its formulations. It has obtained drug registration for about 100
pharmaceuticals formulations in over 10 African countries and it manufactures neutral label products for International
Pharma Marketing companies.
In FY14, net profit rose 10% to Rs.9.7 crore on 8% higher sales of Rs.215 crore. The FY14 EPS stood at Rs.6.7 against
Rs.4 in FY13. During Q2FY15, net profit zoomed 106% to Rs.7 crore on 39% higher sales of Rs.78 crore and the
quarterly EPS stood at Rs.4.3. For HFY15, net profit soared 68% to Rs.10.2 crore on 32% higher sales of Rs.127 crore
and the H1FY15 EPS stood at Rs.6.3.
LPL equity capital is Rs.16.3 crore and with reserves of Rs.82.5 crore, the book value of its share works out to Rs.61. The
value of the gross block is Rs.90 crore. The promoters hold 32.6% in its equity capital, PCBs hold 41.8% and with foreign
holding of 3.5% leaves 22.1% with the investing public.
Right since inception, Lincoln has put a major thrust on developing innovative and technology based products aimed at
optimizing the use of drugs for better therapeutic purposes. Its R&D Centre is equipped with sophisticated instruments
and equipments for in-house physical, chemical and microbiological analysis of all products.
A dedicated group of technocrats man the R&D centre. New product development, Quality improvement of existing
products, process development and validation are undertaken here. Its ceaseless efforts to develop products by using
Optimized Drug Delivery ensures greater potency & effectiveness, lesser side-effect & toxicity levels, better stability, and
lower cost leading to greater accessibility, ease of administration and best patient compliance.
The domestic pharmaceutical industry is pegged at about $22.5 billion (Rs.1,38,830 crore), which is expected to touch
US $27 billion (Rs.1,66,590 crore) in 2016 and $55 billion (Rs.3,39,350 crore) by 2020 at a CAGR of 15-17% indicating
its scorching growth. (McKensey)
India produces 20% of generic drugs in the world and is the third largest producer of drugs by volume and 14th largest
by value. There is a huge export potential for the Indian pharmaceutical industry as exports of drugs and
pharmaceuticals grew by 25% (YoY) to $14.84 billion (Rs 90,500 crore) in FY14.
Overall, the Indian Pharmaceutical Industry could grow by 11-12% in FY14 from 13.5% in FY13.
Lincolns R&D is keeping pace with the changing pharmaceutical technology. As a result of its focused research, Lincoln
has filed a patent for NAMSAFE a hepato-protective combination of Nimesulide with Recemethionine and a product
patent for the protective combination of nimsulide with racemethionine and several more patent applications are in the
pipeline.
The LPL management is cautiously optimistic about its better prospects in 2014-15 and believes that the year will go a
long way in stabilizing its growth path. The
company also undertakes job work of various
Free 2-day trial of
national and multinational companies and has
Live Market Intra-day Calls
added new products to its existing product range.
The company has also embarked upon setting up a
A running commentary of intra-day trading recommendations
new USFDA plant to cater to the domestic as well
with buy/sell levels, targets, stop loss on your mobile every
as regulatory markets. This would also help the
trading
company to perform better in the coming years.
day of the moth along with pre-market notes via email for
Rs.4000 per month.
LPL has been improving its fundamentals every
Contact
Money
Times on 022-22616970 or
year. Based on its H1FY15 results, an EPS of Rs.14
moneytimes.support@gmail.com
to register for a free trial
can be anticipated in FY15, which may rise to
Rs.17 in FY16. At the current market price of
Rs.71, the Lincoln Pharma share trades at a forward P/E of 5 on FY15E earnings and 4.3 times its FY16E earnings. The
share is recommended with a target price of Rs.100 in the medium-term and fetch a gain of 35%.

TECHNO FUNDA
A Time Communications Publication

17

By Nayan Patel

Kanpur Plastipack Ltd

BSE Code: 507779
Last Close: Rs.76.20
Kanpur Plastipack Ltd. manufactures and sells flexible intermediate bulk container (FIBC) products. It also offers
HDPE/PP woven sacks and bags including laminated and unlaminated bags, printed and unprinted bags, pallet covers,
food grain bags, fertilizer bags, cement bags as well as valve bags, bale wraps, liner bags and gusseted bags. In addition,
the company provides PP/HDPE woven fabrics that comprise laminated, unlaminated, circular, and circular cut open
fabrics and various accessories used in the manufacture of FIBCs and woven bags, including webbings, PP filler cords,
dust proof cords, tie strings, B-locks, and velcro. Further, it offers ventilated interlocked, ventilated without interlocked,
conductive food grade application fabrics; and a range of polypropylene multi-filament yarn used in various industries.
Additionally, the company acts as a consignment stockist of Indian Oil Corporation Ltd. and JJ Plastalloy Pvt. Ltd. and
exports its products worldwide. Kanpur Plastipack Ltd. was founded in 1971 and is based in Kanpur, Uttar Pradesh.
It has an equity base of just Rs.7.96 crore that is supported by reserves of around Rs.36.50 crore, which is 4.58 times its
equity leading to a share book value of Rs.55.86. The promoters hold 69.19% while the investing public holds 30.81%
stake in the company.
Financial Performance
(Rs. in crore)

H1FY15

H1FY14

FY14

FY15(E)

FY16(E)

Sales
125.70
96
214.51
260
295
PBT
8.84
8.51
15.67
Tax
2.58
2.32
4.80
PAT
6.26
6.19
10.87
14
18
EPS (Rs.)
7.87
7.77
13.36
17.58
22.61
For H1FY15, KPL has reported sales of Rs.125.80 crore as against Rs.96 crore in H1FY14. Despite higher provisioning for
income tax, profit after tax rose to Rs.6.26 crore and the EPS for H1FY15 stood at Rs.7.87.
For FY15, KPL may deliver net sales of Rs.260 crore with net profit of Rs.14 crore translating into an EPS of Rs.17.58
while for FY16, it may record net sales of Rs.295 crore with net profit of Rs.18 crore translating into an EPS of Rs.22.61.
The scrip is trading at 4.1xFY15(E) EPS &3.2xFY16(E) EPS, which is extremely low compared to its peers. It paid 12%
dividend for FY14. Investors can buy this stock with a stop loss of Rs.60. One the upper side, it will zoom up to Rs.90-95
levels in the medium-term and to Rs.140 level in next 12-16 months.

FUTURES WATCH
By Vinod Harlalka
Given below are the Top 10 Gainers & Losers in the Futures segment in the December 2014 expiry.

No
.
1
2
3

Scrip
SUNTV
SKSMICRO
CANBK

Nov.
Exp.
Closing
27-11-14
318.45
347.25
383.10

TOP 10 GAINERS
December 2014 Expiry
Open
High
Low
28-11-14
322.60
355.30
389.80

A Time Communications Publication

390.60
411.30
444.75

311.45
343.00
389.25

Close

Diff.
%

24-12-14
373.50
401.15
440.50

17.29
15.52
14.98
18

4
5
6
7
8
9
10

ORIENTBANK
UNIONBANK
MRF
TVSMOTOR
INDUSINDBK
ALBK
UBL

286.05
204.65
33188.3
0
231.55
720.65
115.10
744.95

290.10
207.40

331.00
233.65

281.60
204.50

328.40
227.00

14.81
10.92

33621.00
233.75
729.70
116.65
752.65

39750.00
263.25
802.50
137.30
860.45

33461.40
224.45
725.70
112.10
735.95

36266.80
253.00
785.05
124.90
807.70

9.28
9.26
8.94
8.51
8.42

TOP 10 LOSERS
No.

Scrip

1
2
3
4
5
6
7
8
9
10

RCOM
JISLJALEQS
UNITECH
RELINFRA
HDIL
GMRINFRA
HAVELLS
TATASTEEL
JUSTDIAL
VOLTAS

Nov.
Exp.
Closing
27-11-14
106.45
83.40
19.35
598.55
80.50
19.85
310.20
460.15
1565.75
272.95

Open
28-11-14
106.75
85.30
19.65
606.65
81.00
20.05
313.15
464.15
1614.00
276.70

December 2014 Expiry

High
Low

107.30
87.15
20.15
620.00
84.95
20.05
347.20
477.70
1629.30
286.50

77.75
63.70
13.85
475.30
58.50
15.35
250.70
388.60
1221.00
233.15

Close

Diff.
%

24-12-14
79.10
66.55
16.10
498.15
67.90
16.80
264.25
394.20
1343.75
234.35

25.69
20.20
16.80
16.77
15.65
15.37
14.81
14.33
14.18
14.14

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Printed & Published by R.N. Gupta for the proprietors Time Communications (India) Ltd. and printed by him at The Urdu Press 79-A, Jairaj Bhai

Disclaimer: Investment recommendations made in Money Times are for information purposes only and derived from sources that are deemed to
Lane, Mumbai 400 008. Registration No.: 63312/91, REGD. NO. MH/MR/South - 72/ 2006-08
be reliable but their accuracy and completeness are not guaranteed. Money Times or the analyst/writer does not accept any liability for the use of
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A Time Communications Publication

19

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