What investors want

Vol. XXXIII/11 Setbacks to growth plans are more likely to be forgiven than
Jul 16 – 29, 2018
www.capitalmarket.com opacity and fudging of numbers
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The initial reaction to a long-overdue correction dissolved into panic as the slide of
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...................................................................................................................................... mid and small caps that began early May continued over two months. Of late, even
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...................................................................................................................................... large caps seemed to be losing their stamina in their climb to catch up. An across-
Editor : Mohan Sule the-board secular direction irrespective of performance, usually indicating over- or
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...................................................................................................................................... and bust as they know that policy makers will tighten liquidity to prevent bubbles
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Though all care is taken in arriving at the recommendations
given in this publication, readers are cautioned that prices of sibility. No wonder investors feel irritated due to opportunity missed if the black-
equity shares and debentures may rise or fall in a manner not
foreseen. Readers are advised to take professional advice listed category resumes its strides after a time gap. Like fast food, quick judgments,
before investing. investors have now reckoned, are injurious to health. The valuations at which a public
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MOHAN M SULE
Jul 16 – 29, 2018 CAPITAL MARKET 3
ReadersReact
Lackluster show
The performance in the base
quarter ended March 2017 was
adversely affected by the
after-effects of the note ban
(Q4 of FY 2018: ‘No bounce
seen’, Jun 18-Jul 01, 2018).
On the low base, a few sectors
and companies did well. Yet
the despite the low base,
recovery in rural demand and
accelerated implementation of
road projects failed to sparkle
the overall show.
Sudama Rohra, e-mail
Mutual funds are regularly
deploying liquidity into
equities and debt, enabling the
Indian markets to remain at
higher levels even in the face of
outflow by foreign investors
and irrespective of continuing
lack-luster show from
Corporate India.
Shreyash Rajwade, e-mail
Of late, direct investors and
traders have woken up to the
deteriorating economic macros
and possibility of
unfavourable results in the
Telefolio scrips have a proven
record of over 20 years. Still
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4 Jul 16 – 29, 2018 CAPITAL MARKET
state assembly elections
expected by the end of the
calendar year 2018 and Lok
Sabha polls mid May 2019,
leading to huge political
uncertainty.
Avadhesh Baghel, e-mail
Concerns of rising inflation,
higher oil prices, rupee
depreciation and hardening
interest rates have re-emerged.
However, the benefits of
goods and services tax,
expectation of normal south-
west monsoon, improving
rural consumption and good
global demand are positives.
Roop Kumar Chandel, e-mail
Worse-ever show
The banking sector witnessed
its worst quarterly perfor-
mance as earnings and asset
quality deteriorated in the
quarter ended March 2018
(Banks: ‘Taking it on the
chin’, Jun 18-Jul 01, 2018).
The tightening of recognition
of non-performing assets and
their resolution by the
Reserve Bank of India mid
February 2018 along with
continued asset quality stress
caused a sharp surge in fresh
slippages of loans. The net
interest margins and treasury
income declined sharply.
Provisions for bad loans and
mark-to-market depreciation
of investment surged.
Shivcharan Madavi, e-mail
Cranking up
Automobile makers saw
strong demand from all the
segments in the March 2018
quarter (Automobiles: ‘The
Telefolio Gold
Pick right and enjoy
the full ride
For details contact
www.telefoliogold.com
race heats up’, Jun 18-Jul 01,
2018). The trend is expected
to persist. With the disrup-
tion due to recall of high-
value notes and the transition
to the new indirect tax
behind, the momentum is
expected to continue through
the fiscal year.
Mahesh Jangare, e-mail
On an upswing
Order finalization and execution
of infrastructure projects are
expected to gain momentum as
general elections are due in
May 2019, boosting the
prospects of capital goods
producers (Capital Goods:
‘Local flavour, foreign taste’,
Jun 18-Jul 01, 2018). Private
sector investment continues to
be muted given the tightening of
liquidity and hardening of
interest rates.
Prasad Chandra, e-mail
The recent upswing in oil
prices might induce investment
in the infrastructure as well as
hydrocarbon sectors, espe-
cially in the Middle East and
North Africa as they try to
diversity their economic
activity. Given the competi-
tiveness of domestic capital
goods players, the revival of
opportunities will have a
significant impact on the
bottom lines.
Jatin Patel, e-mail
Trade-off
Cement producers are likely
to face pressure on their
profit margins in the coming
quarters despite rising
consumption and sales
Capitaline is an analyst’s delight, yet
easy to be trained upon. Even web
pages can be called inside the
application.
For details contact
91-022-25229720
volumes Pleasant surprise’,
Jun 18-Jul 01, 2018). The
primary reason is higher pet
coke, coal and diesel prices.
Raman Kanwar, e-mail
Sunny days
After sluggish growth in the
past four years, the industry
saw revival in volumes in the
fiscal year ended March 2018
(FY 2018) as the rural
economy after growing at
around 1-2% in the past four
years expanded 4% (Cement
Products: ‘Building for
raining days’, Jun 18-Jul 01,
2018). It is expected to grow
in high single digit. A normal
monsoon prediction in FY
2019, higher minimum
support price for various food
items, higher spend on the
rural economy and
infrastructure in FY 2019 due
to general elections, increased
focus on affordable housing
and rising consumption of
high value-added products
should bolster the growth of
cement products.
Drupesh Lal, e-mail
Dressing up
Most paint companies are
able to take price hikes in the
decorative segment to offset
raw material rises without
hurting the volumes (Paints:
‘Demand and prices shine’,
Jun 18-Jul 01, 2018).
However, ramping up prices
of industrial paints is a
difficult and lengthy process.
Subham Lele, e-mail
Send your feedback to
readersreact@capitalmarket.com
Capitaline CSS database gives
extensive data on Commodities,
Sectors and the related Stocks.
For details contact
91-022-25229720
Inside
13 | In Focus
Private sector banks
Selecting the winners
Oil Marketing Companies
Poor earnings predictability 08 | Cover Story
Indian Rupee
Kicked down Stocks: Healthy correction
Roads & Highways Small and mid cap stocks witnessing sharp correction could be explored for
Constructing growth investment based on various themes

20 | Marked To Market 70 | Market Watch 90 | Capitalaline Corner

IPO Performance Stocks-Small caps Kalpataru Power Transmission
A lukewarm performance Sparklers and dimmers Powering ahead

23 | Over The Counter

Buying and Selling 79| Apna Money
Mahindra CIE Auto stake-sale One purpose, many ways
Mutual fund Scoreboard
26 | Market Watch Can wife be a co-borrower
of loan without owning home?
Market Report
Checks and balances
32 | Corporate Scoreboard
61 | Consolidated Scoreboard
69 | Stock Watch 89 | IPO Centre 63 | Company Index
ITC TCNS Clothing Co. 67 | Bulletin
A conglomerate of businesses Retailing women wear
68 | Watch List
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6 Jul 16 – 29, 2018 CAPITAL MARKET

CoverStory
CoverStory
Stocks
Healthy correction
Small and mid cap stocks witnessing sharp correction could be explored
for investment based on various themes
US president Donald Trump has triggered a
global trade war by imposing tariffs on cer-
tain imports. The US administration started
moving in this direction from January 2018.
However, significant steps were made in
recent months. Tariffs were levied on im-
ports of certain goods from European
Union, Canada, China and Mexico in June
2018. Europe and China have retaliated.
Even India is on course to fire its own salvo
as the US president is big critic of import
duties on US-made high-end bikes.
Matters could get out of hand and be-
come ugly. As per estimates, the US accounts
for one-fourth of the world’s trade in goods
and services. This is quite a huge number
and a good indicator of the US influence on
global trade. The US is suffering from huge
trade deficits since the past several years.
Trade deficit was US$ 566 billion in the cal-
endar year (CY) 2017.
A full-blown trade war could leave ev-
eryone injured. Interestingly, it could
prove to be a self-inflicting wound for the
US itself as cost of imported raw material
will rise for US-based manufacturers. Sev-
eral economists have already slammed
Trump’s measure.
High crude oil prices are another big
dampener. India meets 75-80% of its crude
oil demand through imports. End June 2018,
the WTI light sweet oil crossed US$ 74 per
barrel in the international markets, a four-
year high. In the domestic market, prices of
petrol and diesel have already skyrocketed
in recent months.
Worse, the US has directed India not to
import crude oil from sanction-hit Iran. High
prices of crude will put upward pressure on
inflation and put economic growth in jeop-
ardy. Industries depending heavily on crude
oil derivatives as raw material might suffer
owing to cost escalation if they are unable
to pass on the increase.
Foreign portfolio investors (FPIs) have
emerged as net sellers in recent times, net
offloading of Rs 3638 crore in June 2018
(till 27 June). They net sold in February,
8 Jul 16 – 29, 2018 CAPITAL MARKET
Ready to run
Orient Cement turned around in FY 2018
after merging with Oirent Paper &
Industries in CY 2012 and 74% stake will
be taken in Bhilai Japee Cement
Face Value: Re 1
CMP Rs 115 as on 09 July 2018. One-year return: -25.88%
S&P BSE Mid-cap index one-year return: -20.49%
April and May as well. On an aggregate ba-
sis, FPIs have net sold Rs 200 crore in CY
2018 till end June. A continuation of the
trend will lead to market correction.
Mid June 2018, the US Federal Reserve
hiked interest rates. It is likely to go for
another two rounds of increase till Decem-
ber 2018. Hardening of interest rates in the
US will make investment in the US treasury
more lucrative compared with overheated
emerging markets including India.
India’s perpetual trade deficit as the
country imports more than it exports might
be a blessing in disguise in a global trade
war. With exports on lower side, duties im-
posed by other countries in trade war likely
to have marginal impact on India’s exports.
However, there will be repercussions. The
Indian rupee plunged to an all-time low of
Rs 69 as against the US dollar in June 2018,
seemingly good news for exporters or ex-
port-oriented industries. But the decline in
the domestic currency will inflict a heavier
damage on the local economy considering
India’s trade deficit.
Trade war, boiling prices of crude oil
and increase in interest rates in the US and
the resultant currency depreciation are glo-
bal issues on which India has very little con-
Stocks
trol. There are limited options for the policy
makers to tackle the situation.
The situation not comfortable at home,
either. Domestic interest rates are harden-
ing. The Reserve Bank of India (RBI) hiked
repo rates (the rate at which the central bank
infuses liquidity into the banking system)
25 basis points or 0.25% in June 2015. In
response, several banks have increased in-
terest rates on various loan products.
If inflation moves north, interest rates
might increase further, considering the fact that
crude oil is ruling at high levels. High interest
rates will bring the consumption story under
cloud. Decline in interest rates was among the
biggest positive side-effects of demonetiza-
tion. Rising interest rate is not good news for
Corporate India, particularly for companies
with highly leveraged balance sheets.
Public sector as well are private sector
banks are getting into shell with increasing
regulatory, media and public scrutiny of their
lending practices owing to mountains of bad
loans. Arrests of top officials of multiple
public sector banks is paralyzing lenders and
might adversely affect credit flows to poorly
credit- rated companies, especially small and
medium enterprises. In a rarest of rare in-
stances, public sector bank Indian Bank
dropped plans to pay dividends in June
2018. It had announced dividend of 60% on
face value of Rs 10 in May 2018.
On the positive side, the Indian Meteo-
rological Department (IMD) had predicted
normal monsoon for the current season.
Agricultural output and rural income will
get a boost, and aid economic growth. The
goods and services tax (GST) completed one
year in July 2018. The hiccups in the imple-
mentation are lessening and there are chanced
the system will be simplified further and tax
rates decreased as collections are rising. GST
collections have been robust from April to
June 2019. GST collection in June 2018
improved to Rs 95,600 crore from Rs 94,000
crore in May 2018. With implementation of
e-way bills under the GST regime compli-
ance is expected to improve.
CoverStory
The general elections will be
held in the next year. The out- Half time
come is crucial as stability is The S&P BSE Small- and Mid-cap index have witnessed healthy correc- Karnataka, Andhra Pradesh, and
needed for policy reforms. The tion as against the S&P BSE Sensex which represents large-cap stocks Madhya Pradesh.
opposition is uniting. The rul-
ing party is being criticized by INDEX CURRENT 52-WEEK / 52-WEEK CORRECTION P/E
its own coalition partners. The ALL-TIME LOW 52-WEEK
scenario is not encouraging as HIGH HIGH (%)
the situation could deteriorate S&P BSE Sensex 35423 36444 31017 -2.8 22.54
to the messy coalition era. S&P BSE 500 14529 15661 13211 -7.2 24.43
The equity market needs to S&P BSE Mid-Cap 15451 18321 14485 -15.7 33.03
be assessed against this back- S&P BSE Small-Cap 16032 20183 14701 -20.6 99.19
drop. The S&P BSE Sensex had Source: BSE
touched a historic high of
36,444 in January 2018. At the current level, Thus, the correction of small- and mid-
the Sensex is less than 3% away from its all- cap stocks is healthy. These were richly
time peak and well above the 52-week low valued compared with large-cap stocks.
of 31,017 in July 2017. The present correction could be a good
At the current level of 15,451, the S&P opportunity to enter quality small and mid
BSE Mid-Cap index has reported a healthy cap companies.
correction of 15.7% from its historic peak Quality small and mid caps can be picked
of 18,321. The S&P BSE Small-Cap, at the based on multiple time-tested parameters.
present level of 16,032, it is 4,151 points, Investors can pick and choose filters based
or 26%, shy from its historic high. on their risk appetite, duration of invest-
Of the 2,742 fairly liquid stocks, 1,323 ment and return expectations.
have touched 52-week or multi-year lows in The selection process can center on
the recent months of July, June and May qualitative factors such as market share, vis-
2018. Of these 1,323 stocks, 53 are from ible and high-recall brands, able leadership,
large-cap category, defined as those with a strong promoter group and mega expan-
market capitalization above Rs 14,000 crore, sion plans that are likely to be funded through
while 161 belongs to the mid-cap category, internal accruals or little debt.
with market value between Rs 2,000 crore Quantitative parameters include a good
and Rs 14,000 crore. The remaining 1,109 track record of bonus share issuance, nil or
stocks are small cap and have market lower debt on balance sheet despite peri-
capitalization below Rs 2,000 crore. The odic expansion in the past, consistent divi-
strides of the Sensex and the decline in mid dend payout policies, steady but high oper-
and large caps is a weird situation that is ating profit margins and steady growth in
difficult to comprehend. turnover, profit and dividend percentage.
Of the 2,742 liquid stocks, 1,853 are Cropping of certain known or unex-
down 30% from their 52-week or multi-year pected development can also make stocks
highs. Of these 1,853, 35 are from the large- interesting. These include turnaround or
cap category, 191 mid cap stocks and 1,627 share buyback, with negligible debt.
small caps. Does the scenario presents a As a basic filter, only profit-making and
buying opportunity for investors? dividend-paying companies in the last five
It is impossible to time the market. The years, with mutual fund presence and mar-
stocks might correct further or recover from ket cap below Rs 5000 crore were selected.
these levels as well. Since the meltdown of CK Birla group member Orient Ce-
the global financial markets in the calendar ment reported a turnaround in the financial
year (CY) 2008 and 2009 and the resultant year ended March 2018 (FY2018) after
economic slowdown, India Inc has focused demerging with Orient Paper & Industries
on consolidating, including emphasizing on in the calendar year (CY) 2012. The eight-
the core business activities by exiting non- million-tonnes-per-annum (mtpa) cement
profitable businesses. Companies are capacity is spread across Devapur in
strengthening their balance sheets by re- Telangana, Jalgaon in Maharashtra and
ducing debt and raising equity. Lot of en- Chittapur in Karnataka. An ambitious ex-
ergy and efforts has been put to shape up. pansion plan will take up the total capacity
The process is still on for several corpo- to 15 mtpa by CY 2020. Ordinary portland
rate groups. cement and pozzolana portland cement are
Jul 16 – 29, 2018 CAPITAL MARKET
Stocks
sold as Birla A1. The main mar-
kets are Maharashtra, Telangana,
An agreement was signed in
P/BV DY May 2017 with the Jaypee
(TIMES) (%) group to acquire a 74% stake in
Bhilai Jaypee Cement, with an
2.91 1.26 integrated capacity of 2.2 mtpa
2.75 1.21 and a separate grinding unit at
2.59 0.94 Nigrie in Madhya Pradesh, with
2.23 0.78 a capacity of two mtpa. How-
ever, the deal was terminated in
May 2018 as both parties failed
to achieve closure. High leverage, with a debt-
to-equity ratio of 1.29 times end FY 2017,
is a matter of concern. Mutual funds con-
trolled 22.35% equity end March 2018.
Essel Propack manufactures plastic
packaging material in the form of multi-
layer collapsible tubes and laminates, used
primarily for packaging of consumer prod-
ucts in the beauty and cosmetics, health
and pharmaceuticals, food, home and oral-
care categories. Nearly 65% of the rev-
enues come from overseas markets, with
Europe and America being the biggest con-
tributors. Moreover, there is around 36%
share in the oral-care tubes market. The
focus is on increasing revenue from the
non-oral care segment to reduce concen-
tration risk.
Operations at the newly commissioned
factory at Dhanoli, Vapi, in Gujarat stabi-
lized in FY 2018. Further, the caps and clo-
sure manufacturing facility was commis-
sioned in-house to save cost and time. A
new factory is being set up near Guwahati
in Assam to make tubes and cater to the
north-eastern market, expected to report
robust growth. Net debt declined Rs 140
crore to Rs 564 crore end March 2018.
Navneet Education is a dual play of
strong brand and high market share. The edu-
cational syllabus-based content provider in
the print and digital medium manufactures
scholastic paper stationery and publishes
general and children books. A wide range of
scholastic non-paper stationery products are
on offer. Over the years, brands have been
nurtured in educational content and scho-
lastic stationery. There is dominant market
share of about 65% in western India in se-
lect segments such as syllabus-based books.
A new range of supplementary books for
students of CBSE and ICSE Boards has
spread the coverage of educational products
across the country.
9
CoverStory Stocks

Key brands include Navneet, Vikas, Gala
and Youva. Syllabus change in Maharashtra
and Gujarat is expected to boost revenues.
Indiannica Learning Pvt Ltd, the erstwhile
Encyclopaedia Britannica, was bought in
December 2016 to cater to the CBSE text-
books market. The acquisition will help in
expanding geographical presence and wid-
ening the product portfolio. Shares worth
Rs 58.2 crore were bought back in FY 2017
at a price of Rs 125 per share including pre-
mium of Rs 123.
Public sector undertaking Moil is the
largest producer of manganese ore in the
country, accounting for nearly half of the
production. The highest-ever production of
1.2 mt of manganese ore was achieved in FY
2018, a growth of 19.5% over the previous
year. The production target is 1.32 mt of
manganese ore and capex target is Rs 200
crore in the current fiscal year.
The aim is to achieve production target of
two mt by CY 2021 and 2.5 mt by CY 2025.
As such, various mine development and ex-
pansion projects have been undertaken. These
include setting up of high speed shaft at the
Balaghat (Madhya Pradesh) and Gumgaon
mines (Maharashtra) with a capital outlay of
Rs 460 crore. Also, to diversify, a ferro alloy
plant, with capacity of 75,000 mtpa, will be
set up at the Balaghat and Gumgaon mines at
a total investment of Rs 419 crore. Solar power
projects, with aggregate capacity of 30.5 MW
are under implementation.
The cash-rich, debt-free company opted
for a buyback in FY 2017 and FY 2018. The
latest buyback was completed in March 2018.
Shares were bought back at Rs 240. The out-
lay was Rs 210.4 crore. Shares worth Rs
863.3 crore, at a price of Rs 248 per share,
were bought back in FY 2017. Bonus shares
in the ratio of 1:1 were issued in FY 2017.
Godfrey Phillips India is fairly con-
sistent with its dividend policies, with pay-
out ranging from 22.7% to 30.5% over the
last 10 years. A dividend of Rs 8 per share
has been declared for FY 2018. US-based
multinational cigarette and tobacco company
Philip Morris International owned 25.1%
equity stake as promoter, while the KK
Modi and family controlled 47.10% end
March 2018. The share is around 12% of
the domestic cigarette market. The Marlboro
brand of cigarettes are manufactured and dis-
tributed under exclusive agreements with
Philip Morris.
Apart from cigarettes, other retail and
consumer presence includes chewing prod-
ucts, confectionary and convenience stores
under the brand 24Seven. Chewing prod-
ucts are sold under brands Pan Vilas, Raag
and Pan Vilas Silver Dewz. Confectionary
brands include Funda Goli and Imli

Discount sale
Small- and mid-cap stocks that have witnessed sharp correction and have mutual fund
presence with unique business propositions
COMPANY CMP CORRECTION MCAP 52-WEEK MUTUAL FUND TTM NET SALES TTM APAT P/E P/BV DY
(Rs) FROM 52-WK (Rs cr) HIGH LOW HOLD (%) (Rs cr) CHG (Rs cr) CHG (%)
HIGH (%) (Rs) (Rs) AS OF (%) (%)
DB Corp 261.2 -33.4 4806.8 392.4 237.5 201803 3.55 2328.5 3.1 324.0 -13.6 14.8 2.49 0.38
Can Fin Homes 339.5 -48.9 4520.6 665.0 328.2 201803 3 1544.3 14.2 301.8 28.3 15.0 3.36 0.59
MOIL 172.9 -39.5 4452.8 285.5 158.5 201803 0.63 1323.5 33.7 422.0 39.5 14.5 1.59 1.50
Elgi Equipments 270.0 -22.9 4278.3 350.0 210.0 201803 11.47 1605.3 17.2 97.0 31.1 44.0 6.21 0.44
Great Eastern Shipping Co 274.2 -43.2 4133.6 482.4 267.1 201803 18.78 2995.5 -2.4 -222.5 PL 0 0.60 2.63
APL Apollo Tubes 1690.1 -34.7 4010.5 2587.0 1444.4 201803 14.79 5156.1 35.5 160.0 5.2 25.1 4.79 0
MCX 751.8 -36.4 3834.2 1181.9 665.0 201806 21.71 259.8 0.2 108.4 -14.4 35.4 2.78 2.26
Godfrey Phillips India 714.4 -44.4 3714.2 1285.8 684.0 201803 1.44 2239.9 -1.5 147.7 8.3 25.5 2.07 1.12
Rallis India 184.4 -36.3 3586.0 289.4 181.0 201803 12.33 1790.9 7.5 167.0 -3.0 21.4 3.01 1.36
Essel Propack 109.0 -31.3 3426.2 158.5 107.0 201806 3.54 2423.9 5.3 176.6 -3.2 19.7 2.74 1.10
Navneet Education 127.0 -31.4 2965.0 185.0 117.5 201803 16.49 1134.6 3.8 153.2 -5.2 23.3 3.94 1.18
Time Technoplast 123.6 -46.9 2795.2 232.6 115.7 201803 9.01 3102.7 12.6 180.4 22.6 15.5 1.90 0.65
La Opala RG 231.4 -37.8 2568.5 372.0 225.0 201803 1.31 259.3 10.2 73.4 18.1 35.0 5.10 0.48
Orient Cement 114.8 -37.6 2351.2 183.8 106.0 201803 22.35 2222.3 18.5 44.2 LP 53.1 2.30 0.65
Tata Coffee 118.2 -35.6 2206.7 183.5 109.5 201803 2.78 1567.3 -2.4 197.7 -6.4 20.7 1.97 1.27
Somany Ceramics 474.8 -51.2 2012.0 973.8 465.0 201803 20.76 1659.6 -7.9 68.3 -24.1 24.5 3.46 0
Gabriel India 136.7 -38.6 1963.0 222.7 128.7 201803 1.24 1834.4 20.8 94.2 14.1 20.8 3.74 1.02
Mayur Uniquoters 407.9 -28.2 1848.7 568.2 315.0 201803 4.69 552.2 15.8 94.1 14.6 19.1 4.11 0.34
Indoco Remedies 173.5 -45.3 1598.8 317.0 167.2 201803 9.91 1017.3 -4.6 41.2 -46.8 38.8 2.37 0.58
Indian Hume Pipe Company 252.6 -57.3 1223.8 591.0 238.0 201803 5.02 1526.0 -10.5 66.1 -33.8 18.6 2.70 1.35
Sequent Scientific 50.0 -59.6 1218.7 123.6 44.7 201803 4.68 928.3 16.4 40.2 LP 52.6 1.88 0.40
Wim Plast 858.7 -46.5 1030.7 1604.0 805.0 201803 5.28 388.6 10.0 44.5 -8.3 23.1 3.47 0.82
Lumax Auto Technologies 135.4 -27.4 922.5 186.4 93.9 201803 3.5 1111.5 15.1 59.4 40.0 15.5 2.04 0
Clariant Chemicals (India) 394.3 -42.7 910.0 687.7 392.1 201803 8.72 1013.6 3.4 21.6 -11.8 42.1 1.46 6.34
Premier Explosives 250.9 -53.2 266.9 536.3 243.0 201806 17.43 265.9 15.5 8.7 -43.6 33.3 1.90 1.00
CMP (current market price) is closing as on 6 July 2018. Consolidated financials considered wherever available. MF : Mutual fund. TTM (trailing 12-months) net sales and adjusted profit after tax (APAT) for period
ended March 2018. LP : Loss to profit. PL : Profit to loss. P/E : Price to earnings ratio. P/BV : Price to book value. DY : Dividend yield. Source: Capitaline Database

10 Jul 16 – 29, 2018 CAPITAL MARKET

CoverStory Stocks

Bargain hunt
Small- and mid-cap companies witnessing healthy correction and scoring high on various qualitative
and quantitative parameters like market share, brands, growth, strong balance sheet and so on
COMPANY HIGHLIGHTS
Time Technoplast With a stable dividend policy and payout ratio ranging from 10% to 15.5% over the last one decade, the polymer caters to diverse
industries such as industrial packaging, infrastructure, lifestyle, composites, auto components and MOx films. The focus is on
replacing metals with polymers in high-performance areas. There is presence in Thailand, Taiwan, Indonesia, Vietnam, Malaysia,
UAE, Bahrain, Saudi Arabia and Egypt.
Somany Ceramics Though on the lower side and in single digits, the operating profit has remained consistent at an average of around 8.8%. The
aggregate capacity of 60 million square meters of ceramics is spread across manufacturing plants at Kadi in Gujarat and Kassar in
Haryana and other joint venture plants. Products include ceramic wall and floor tiles, polished vitrified tiles, glazed vitrified tiles, digital
tiles, sanitary ware and bath fittings. Mutual Funds owned 20.76% equity share capital in the small cap.
Elgi Equipments Six bonus shares have been issued date, with then latest being in CY 2000 and CY 2010 in the ratio of 1:1 on both the occasions. The
product portfolio comprises compressed air solutions ranging from oil-lubricated and oil-free rotary screw compressors, oil-lubricated
and oil-free reciprocating compressors and centrifugal compressors. There are over 400 products with applications across industries.
Mutual funds held 11.47% stake as of March 2018.
Gabriel India The Auto component maker and the flagship of the Anand group issued bonus shares in CY 2012 in the ratio of 1:1. Products consist of
a wide range of ride control products including shock absorbers, struts, andfront forks. Around 56% of the revenues were contributed
by two- and three-wheelers, followed by passenger vehicles (31%) and commercial vehicles (13%).
La Opala RG The owner of popular brand La Opala for opal glassware and tableware is the country’s largest tableware brand. Other brands include
Diva in table ware and Solitaire in crystal ware. These are aimed at premium consumers. Bonus shares were issued in CY 2018 and
CY 2006 in the ratio of 1:1.
Wim Plast The zero-debt company manufactures plastic molded furniture, plastic extrusion sheets, moulds and air coolers. The product basket
includes chairs, storage cabinets, kids’s chairs, stools, dining tables and centre tables. These are sold under the brands Cello, Endura
and Laurel.
Sequent Scientific A turnaround in FY 2018 enabled dividend payout of 10% after a gap of six years. The veterinary formulations and active pharmaceuti-
cal ingredients (API) manufacturer has facilities based in India, Spain, Germany, Brazil and Turkey, with approvals from global
regulatory bodies including USFDA, EUGMP, WHO, TGA among others. The human API business was demerged into Solara Active
Pharma Sciences in October 2017.
Mayur Uniquoters One of the largest producers of the synthetic leather has an installed capacity of 3.05 million linear meters per month. The Zero-debt
company is expanding capacities. Production of PU leather is expected to start in Q1 of FY 2020. Also, the seventh coating line has been
finalised. Advance payment has already been made. As many as 4.5 lakh shares were bought back at Rs 550 per share in FY 2018.
Lumax Auto Tech The auto component maker reduced debt over the last five years and is currently a debt-free company. Capex has been funded
through internal accruals. Global partnerships include Cornaglia SPA of Italy, Mannoh Industrial Company of Japan, Gill Industries Inc of
the USA, Austem Company of Korea, Sipal SPA of Italy, Alpine of Japan, Ituran of Israel and FAE of Spain.
Rallis India The Tata group company is among the country’s leading crop solutions provider, with a comprehensive portfolio of crop protection
chemicals. There are marketing alliances with several multinational agrochemical producers and also a preferred partner for contract
manufacturing for leading global corporations.
Great Eastern Ship India’s largest private sector shipping company is for around 70 years. The shipping fleet includes crude carriers (16.09 deadweight
tonnes or dwt), product carriers (9.87 dwt), gas carriers (2.19 dwt) and dry bulk carriers (11.59 dwt). The Net debt -to -equity ratio
stood at 0.35 times end March 2018. Mutual funds held 18.78% stake end March 2018.
Premier Explosives The portfolio of the products and technologies manufacturer of explosives and accessories includes emulsion and slurry explosives,
LD cartridge explosives and bulk explosives. Andhra Pradesh Industrial Infrastructure Corporation has provisionally offered 202 acres
of land at Routhsurmala in the Chittor district for establishing a unit to manufacture solid propellant.
Clariant Chemicals Among the country’s largest specialty chemical producers is part of Switzerland-based Clariant and makes chemicals, catalysts,
natural resources and plastics and coatings. The Indian subsidiary produces pigments, master batches and additives. Mutual funds
controlled 8.72% equity in the debt-free company.
Indian Hume Pipe Revenue visibility is outstanding, with an order book of Rs 3205 crore mid May 2018, translating into 2x FY 2018 revenues. The
manufacturer, layer and joiner of pipelines. Also, infrastructure development programs are executed on a turnkey basis. Besides water
supply projects, manufacture of concrete railway sleepers are undertaken for Indian Railways.
Source: Companies

Naturalz. These stores offer daily-need rier services, instant photo development, March2018. The aim is to reach 170 stores
groceries, foods, beverages, cosmetics and bill payments, mobile phone recharges and by March 2019. Under examination is geo-
personal-care products, music and movies, movie tickets. As many as 15 stores were graphic expansion of cigarette brands, par-
magazines, domestic and international cou- added to take the total count to 61 end ticularly in south India.

Jul 16 – 29, 2018 CAPITAL MARKET 11

CoverStory
Tata Coffee qualifies for inclusion on
multiple counts including reputed brands and
strong promoters (Tata group). Products
encompass coffee (cultivated area of 7,369
hectares), tea (cultivated area of 2,456 hect-
ares), instant coffee (8,500 million tones or
mt) and pepper (inter-cropped at coffee and
tea estates and annual production of around
1,000 mt). Capacity to make instant coffee
stood at 6,000 mt end March 2018. Instant
coffee brand Tata Coffee Grand is marketed
and distributed by parent Tata Global Bev-
erages in the domestic market. There is pres-
ence in the hospitality business encompass-
ing plantation trails.
Requirements of Tata Starbucks outlets
in the country are met by the coffee roasting
facility at Kushalnagar works, Karnataka.
Subsidiary Eight O’clock Coffee Company
(EOC), acquired in CY 2006, operates in
the US, marketing premium coffee brand
EOC Coffee with over a 150-year legacy.
EOC launched several new products in FY
2018. A freeze-dried coffee unit, with ca-
pacity of 5,000 mt, is being built in Viet-
nam, the first plant outside India. Opera-
tions are expected to start in January 2019.
Listed in CY 2010, DB Corp announced
buyback worth Rs 313 crore at a price of Rs
340 per share in May 2018 through tender
offer on a proportionate basis. The zero-
debt company at the net level had cash
hoardings of Rs 322 crore end March 2018.
In fact, debt has reduced significantly over
the last one decade. Flagship newspaper
Dainik Bhaskar, the country’s largest circu-
lated multi-edition daily, is also the world’s
fourth largest circulated newspaper.
There is presence in over 20 major states
including in Madhya Pradesh, Chhattisgarh,
Rajasthan, Gujarat, Haryana, Punjab,
Chandigarh, Maharashtra, Himachal Pradesh,
Jharkhand, Bihar and Delhi, with multiple
newspaper brands and editions in various
languages. The dailies added 11 crore readers
over four years. The radio business, 94.3 My
FM, operates from 30 stations in seven states
and has leadership position in Madhya
Pradesh, Chhattisgarh and Rajasthan.
Promoted by the public sector Canara
Bank, Can Fin Homes has reported con-
sistent growth in revenues and profit over
the last several years. Under the Vision
2022, the housing finance company aims to
increase the loan-book size to Rs 40000 crore
by March 2022, a CAGR of 26%. The loan
book is expected to touch Rs 19500 crore in
the current fiscal year compared with Rs
12
Steady performer
Can Fin Homes has reported consistent
growth in revenues and profit for several
years and aims to increase loan book to
Rs 4000 crore by FY 2020
Face Value: Rs 2
CMP Rs 345 as on 09 July 2018. One-year return: -47.00%
S&P BSE Mid-cap index one-year return: -20.49%
15743 crore in FY 2018. The salaried and
professional segment accounted for 73% of
the total loan book end March 2018.
The plan is to add 20 new branches to
take the total count to 190 by March 2019.
Currently, there is presence in 19 states and
Union territories. However, 70% of the rev-
enues are derived from the southern region,
primarily Tamil Nadu, Karnataka, Andhra
Pradesh and Telangana. Thus, there is a large
opportunity to tap new business through
geographical penetration.
The gross non-performing asset (NPA)
ratio improved to 0.43% in FY 2018 (0.46%
in FY 2017). The net NPA ratio moved up to
0.20% (0.25%). The capital adequacy ratio,
at 19.1%, is sufficiently higher compared with
the regulatory stipulation of 12%. Distribu-
tion of insurance products is undertaken
through the corporate agency model.
Indoco Remedies has reported stable
operating profit margins between 14.1% and
19.3% over the last one decade. The
Mumbai-based pharmaceutical producer
company has presence in 55 countries.
Around 3.1 lakh doctors generate over 70
million prescriptions a year. The manufac-
turing infrastructure includes six facilities for
formulation and three for bulk drugs. Some
of the manufacturing facilities are approved
by overseas regulators such as FDA of the
US, MHRA of the UK, TGA of Australia
and MCC of South Africa.
The nine marketing divisions have a
strong brand portfolio in various therapeu-
tic segments including respiratory, anti-in-
fective, dental care, pain management, gastro-
intestinal, ophthalmic, cardiovascular, anti-
diabetics and anti-obesity. The top brands
Stocks
in the domestic market include Cyclopam,
Febrex Plus, Sensodent-K, Oxipod and Cital.
International tie-ups with large generic com-
panies include Watson’s the US and Aspen
of South Africa. Mutual funds held 9.91%
stake end March 2018.
APL Apollo Tubes declared dividend of
140% or Rs 14 for FY 2018. Dividend has
gradually stepped from 120% in FY 2017,
100% in FY 2016, 60% in FY 2015, 50%
each in FY 2014 and FY 2013 and 20% in
FY 2012.One of the country’s leading
branded steel products manufacturers oper-
ates six facilities, with aggregate capacity of
1.8 mtpa. Multi-productofferings include
over 500 varieties of MS black pipes, galva-
nized tubes, pre-galvanized tubes, structural
ERW steel tubes and hollow sections.
Products cater to a variety of industries
including urban infrastructures, housing, irri-
gation, solar plants, greenhouses and engi-
neering. The distribution network consists
of over 600 dealers spread across India. Ware-
houses-cum- branch offices are in 20cities.
Six direct forming technology lines were
commissioned in FY 2018 across existing
facilities at Raipur in Chhattisgarh, Hosur
in Tamil Nadu and Murbad in Maharashtra.
Another two lines are to be set across exist-
ing facilities at Sikandarabad in Uttar Pradesh
and Hosur. These are likely to come on
stream in H1 of FY 2019. The total
installedcapacity will go up to two mtpa.
Conclusion
Mid and small caps stocks might correct
further from the current level considering
these two categories continue to command
premium valuation compared with large caps.
Financial performance of companies with
higher linkages with the global markets face
uncertainty owing to potential trade war.
The sharp correction in small- and mid-
cap counters opens up an opportunity to
invest in quality stocks. Presence of institu-
tional investment provides comfort. Com-
panies with strong underline theme or do-
main have better chances of bouncing back
quickly on market recovery. Investors should
opt for theme of their choice based on indi-
vidual preferences and risk appetite.
Over the last decade, several small- and
mid-cap companies have undergone consoli-
dation to face the harsh market realities. Sev-
eral companies have become prudent in their
investments and expansion plans. The cau-
tiousness should be taken as a welcome sign.
— Venkatesh S
Jul 16 – 29, 2018 CAPITAL MARKET
InFocus
InFocus
Private sector banks
Selecting the winners
Consistently gaining the credit market share and maintaining
healthy performance in a challenging environment
Despite a challenging operating environ-
ment, India’s private sector banks (PVBs),
particularly those focused on retail, have
maintained profitability. The healthy per-
formance on various indicators has offset
the negative performance from some pri-
vate corporate lenders. In contrast, public
sector banks (PSBs) recorded deep losses,
with steep increase in non-performing as-
sets (NPAs), in the financial year ended
March 2018 (FY 2018).
The gross NPA (GNPA) ratio of the
banking sector jumped to 11.5% end March
2018 from 9.5% end March 2017, mainly
driven by surge in the GNPA ratio of PSBs
to 14.6% from 11.7%. The net NPA (NNPA)
ratio of PSBs also moved up 8% from 6.9%.
On the other hand, PVBs restricted the rise
in the GNPA ratio to 4.6% from 4% and the
NNPA ratio to 2.3% from 2.1%.
The GNPA ratio of the banking system
might touch a two-decade high of 12.2% by
March 2019, with banks under prompt cor-
rective action (PCA) expected to be the worst
hit, warned the Financial Stability Report
(FSR), released by the Reserve Bank of India
(RBI) on 03 July 2018. Banks undergoing
the RBI’s restrictive PCA framework will be
worse off. The GNPA ratio of these banks is
expected to jump to 22.3% of the advances
end March 2019 from 21% end March 2018.
The share of PSBs in credit delivery has
been gradually coming down. Credit demand
is increasingly being met by PVBs. The share
of PSBs in credit delivery decreased from
79% of total bank credit of PSBs and PVBs
together end March 2013 to 68.9% end
March 2018. PSBs have also given up share
in deposits from 81% end March 2013 to
73.9% end March 2018. More importantly,
PVBs have built more granular deposit base,
with its current-account-savings- account
(Casa) deposits ratio rising consistently to
43.9%, while that of PSBs was relatively
lower at 38.5% end March 2018.
PVBs have generated a higher share of
retail loans, contributing to higher margins.
PVBs are also maintaining a higher credit-
deposits ratio of 95.1% end March 2018,
showing improvement from 92.9% end March
Jul 16 – 29, 2018 CAPITAL MARKET
Scoring high
Retail focused PVBs maintained strong
profitability, offsetting the tepid
performance from some private lenders
and dismal show of PSBs
2017. Despite continuous asset quality pres-
sure and competitive pressure on yields,
PVBs have consistently maintained the net
interest margins (NIMs), with the average of
the margins of 17 PVBs hovering in the range
of 3.3-3.5% for the last many years.
Even as PSBs have reduced their distri-
bution network, with the closure of unviable
branches as well as ATMs, PVBs have con-
tinued to expand their distribution network,
adding more branches and ATMs in FY2018.
The 17 PVBs added 1,217 branches in FY
2018, bolstering the branch network to
24,002 branches. They also added 1,641
ATMs, boosting the ATM count to 58,914
ATMs end March 2018.
Some major PVBs exhibited a strong
performance in FY2018 on various indica-
tors supporting the overall performance of
PVBs, offsetting the weak performance of
some of the private corporate lenders.
India’s largest private sector bank by
business HDFC Bank maintained a strong
loan growth of 19% end March 2018, mainly
driven by retail loans. The Casa deposits ra-
tio was at 43.5% end March 2018. Reported
NIMs were stable at 4.3% and are expected
to sustain in the range of 4-4.4%. A key ap-
proval was received from the Union Cabinet
in June 2018 to raise additional share capital
of up to a maximum of Rs 24000 crore in-
cluding premium over and above the previ-
ous approved limit of Rs 10000 crore. The
composite foreign shareholding cannot exceed
74% of the enhanced paid-up equity share
capital. The approval includes Rs 8500-crore
infusion from parent Housing Development
Finance Corp (HDFC) to maintain the 25.6%
current shareholding, potentially leaving
about Rs 15500 crore to be raised from the
market. There are plans to collect Rs 50000
crore though various debt instruments.
With a network of 4,787 branches and
12,635 ATMs, there were 4.3-crore custom-
ers across 2,691 Indian towns and cities end
March2018. The RBI in September 2017
identified it as India’s domestic systemically
important banks (DSIB).
The success has come largely due to its
focus on retail loans, constituting 57% of the
loan book. It helped maintain growth when
others were struggling with NPAs. For in-
stance, India’s largest private lender ICICI
Bank reported gross NPAs of 8.84% end
March 2018. Country’s third-largest private
lender Axis Bank had 6.77% gross NPAs in
the same quarter. The picture is even worse
for PSBs. Of 21 PSBs, 14 have a GNPA ratio
of over 15% end March 2018.
Kotak Mahindra Bank (KMB) over-
took the country’s largest public sector
lender State Bank of India to become the
second-biggest lender by market capitaliza-
tion, behind only HDFC Bank. The highest
NIMs of around 4.5% were recorded in
FY2018. The shareholders have approved
raising up to Rs 65000 crore to fund busi-
ness expansion.
The loan growth of the bank was strong
at 25% end March 2018. Asset quality im-
proved marginally. The GNPA ratio im-
proved to 2.22% from 2.31%. The NNPA
ratio also declined to 0.98% from 1.09%.
The Casa ratio improved sharply to 50.8%
end March 2018 from 44% end March 2017.
KMB has refused to confirm or deny
merger with Axis Bank, indicating it is open
for inorganic growth. However, the bank has
already proved its mettle after a big merger
with southern bank ING Vysya, which was
almost equal to its balance sheet size, and
had a very good portfolio of SME, agricul-
ture and MNC clients.
Yes Bank achieved various key mile-
stones in FY 2018 and entered the large bank
growth phase, while crossing assets level of
Rs 3 lakh crore, advances level of Rs 2 lakh
crore as well as deposits base of Rs 2 lakh
crore and emerging as the fourth largest
privtate sector bank. Care Ratings has up-
graded ratings on multiple instruments, re-
flecting robust financial performance, credit-
13
InFocus
worthiness, and increasing share of Casa as
well as retail deposits. It has received the Retail vs corporate lending
final regulatory approval from the Securities Retail loans focused private banks maintain strong asset quality
& Exchange Board of India (Sebi) to com- MCAP CMP TOTAL INC PAT P/E P/BV LOAN NNPA CHG IN CMP OVER
mence the mutual fund business. The ap- (%) (%) BOOK(%) (%) 1-MON 1-YEAR
proval is subsequent to the RBI’s approval,
Axis Bank 136756.0 532.6 0.9 -92.5 496.1 2.2 17.8 3.4 -0.9 4.4
followed by Sebi’s in-principle approval re-
Bandhan Bank 69182.7 580.0 27.5 21.0 51.4 7.4 37.4 0.6 16.4 -
ceived subsequently. The fund house will be
City Union Bank 12701.9 173.6 7.6 17.7 21.5 3.1 17.1 1.7 2.1 13.6
called Yes Asset Management (India).
DCB Bank 5570.9 180.5 17.1 22.9 22.7 2.2 28.6 0.7 -1.2 -7.3
The rating upgrade will benefit by re-
Dhanlaxmi Bank 433.9 17.2 -7.0 PL -17.4 0.6 -3.3 3.2 -12.1 -57.1
duction in incremental borrowing cost by
Federal Bank 16503.3 83.5 11.8 5.8 18.8 1.3 25.4 1.7 -3.6 -27.1
about 30-40 basis points (bps) and help to
compete on better terms. The move is NIM- HDFC Bank 558956.4 2146.4 17.0 20.2 32.0 5.3 18.7 0.4 4.7 28.0
accretive. The mutual fund licence will help ICICI Bank 175847.1 273.4 -1.7 -30.9 25.9 1.7 10.4 4.8 -5.2 -6.2
to expand product bouquet and enhance pres- IDFC Bank 13429.2 39.5 5.3 -15.7 15.6 0.9 5.6 1.7 -5.8 -39.5
ence in India’s financial market. The final IndusInd Bank 116199.5 1935.1 18.6 25.7 32.2 4.7 28.2 0.5 2.5 24.0
license has been received from Sebi to launch J & K Bank 2823.3 50.7 -0.9 LP 13.9 0.5 12.6 4.9 -14.0 -41.7
the custodian of securities business. Karnataka Bank 3344.7 118.4 6.4 -28.0 10.3 0.7 28.0 3.0 -0.6 -29.3
NIMs improved to 3.5% for FY 2018 Karur Vysya Bank 7524.4 103.6 3.0 -43.0 21.8 1.2 11.0 4.2 -1.2 -22.6
and are on track to touch 4% by March 2020. Kotak Mah Bank 261549.9 1372.2 12.4 19.7 64.0 7.0 24.7 1.0 4.1 41.8
The cut in savings account deposit rate to Lakshmi Vilas Bank 2601.6 101.7 1.2 PL -4.4 1.1 12.7 5.7 -11.3 -46.5
normal industry level of 3.5% from the cur- RBL Bank 24409.7 579.9 24.8 42.4 38.4 3.7 36.7 0.8 8.8 8.9
rent rate of 6% will contribute 35-40-bp rise South Indian Bank 4098.5 22.7 7.1 -14.7 12.2 0.8 17.0 2.6 -7.9 -21.4
in the NIMs. Advances grew a robust 54% Yes Bank 85634.2 371.4 23.9 26.9 20.3 3.3 53.9 0.6 10.0 22.7
in FY2018. Loans are expected to grow 30% CMP: Current market price as on 10 July 2018. Figures for TTM ended March 2018. Source: Capitaline Databases
and earnings 25-27% for FY2019.
Both GNPAs as percentage of gross ad- achieve the Vision 2020 targets. The loan Kochhar. The bank received the third
vances improved to 1.28% and NNPAs to book surged 37% end March 2018 over whistleblower complaint on irregularities,
0.64% end March 2018. Stressed assets March 2017. The Casa ratio gained to incorrect accounting. The CEO has opted to
(NNPA + securities receipts + restructured 24.3%. NIMs have been consistently im- extend her annual leave till such time that
loans) declined to 1.73% end March 2018 proving and reached a high level of 3.98% in the internal inquiry into allegations against
from 2.41% end December 2017. Q4 of FY2018. On track to reduce the cost- her is completed.
IndusInd Bank’s business volumes grew to-income ratio to 51% by FY2020, the fo- Axis Bank and ICICI Bank are expected
24% to Rs 2.97 lakh crore, driven by 28% surge cus is on further improving the return on to report better performance in the June
in the loan book to Rs 1.45 lakh crore end March equity to 13.5% by Q4 of FY2019. 2018 quarter as the level of their stressed
2018 over March 2017. The thrust is on in- Overall stressed assets declined 26 bps asset has declined substantially.
creasing the customer base to 20 million by CY to 1.48% end March 2018 from 1.74% end
2020. The NIMs remained stable at 3.97% in December 2017. Capital infusion will not be Conclusion
Q4 of FY2018. The Casa ratio improved sub- required for the next seven to eight quarters. India’s private sector banks have continued
stantially to 44% end March 2018. The stake in micro lender Swadhaar to exhibit strong performance in a challeng-
‘No-objection’ has received from the FinServe was hiked to 100% to help expand ing environment. They are consistently gain-
National Stock Exchange of India (NSE) and its financial inclusion initiatives. Swadhaar ing the credit market share. The RBI has
the Bombay Stock Exchange (BSE) for the FinServe offers services to the underbanked warned NPAs in the banking sector will in-
proposed merger with Bharat Financial In- segment in rural and semi-urban areas and crease further in FY2019. PSBs are far more
clusion (BFIL). IndusInd Bank has signed a has a network of 331 branches across 18 prone to fraud than PVBs.
share-purchase agreement with Infrastruc- States with loan book of Rs 2000 crore and The continued struggles of PSBs and
ture Leasing and Financial Services (IL&FS) 7.5 lakh customers. as many as 11 PSBs under the PCA frame-
and other minority shareholders to acquire Axis Bank and ICICI Bank were hit work of the RBI facing restrictions on
100% of IL&FS Securities Services (ISSL), due to various controversies concerning cor- growth will provide further room to PVBs
a subsidiary of IL&FS. It has received RBI’s porate governance, bad loans, asset quality to gain the share in the banking sector away
approval for the proposed transaction. The and higher credit cost. Axis Bank reported from PSBs in addition to existing large
acquisition will help the bank to scale up the first-ever loss of Rs 2188.74 crore since growth opportunities.
the present capital market business and bring listing for the quarter ending March 2018. PVBs require higher additional capital to
new specialized products, hitherto not of- Chief Executive Officer (CEO) Shikha grow faster and gain market share. They are
fered by the bank to its clients. Sharma decided to cut short her fourth ten- well placed to raise it from the market. The
RBL Bank has continued to maintain ure till December 2018. various banking sector reforms on asset qual-
strong growth momentum across all busi- There seems to be no end to the troubles ity resolution will strengthen the sector.
nesses. The performance is on track to plaguing ICICI Bank and CEO Chanda — Vijay Ghutukade

14 Jul 16 – 29, 2018 CAPITAL MARKET

InFocus
Oil Marketing Companies
Poor earnings predictability
Inventory gains to offset the negative impact of falling marketing
margins and gross refining margins
Indian public sector oil marketing compa- The drop in the benchmark Singapore
nies (PSUs OMCs) Indian oil (IOCL), gross refining margins (GRMs), a profit-
Bharat Petroleum (BPCL) and Hindustan ability measure for the refining sector, over
petroleum (HPCL) underperformed broader the past one month because of the decline in
index over the past year even though the petroleum product cracks in various geog-
core operating performance has been strong, raphies including North America, Europe
reflecting the general investor perception that and Asia has also contributed to the fall in
the profit potential of downstream refining stock prices. However, the unsold inven-
companies would get affected by increased tory stockpile is expected to provide some
subsidies and under recoveries. respite to refiners.
Under-recovery is a notional loss in rev- Globally, refining margins have been
enues to the extent the international price of strong over the last three years due to healthy
the fuel is higher than the fuel prices under product demand. While the consumption mo-
the PDS. mentum is likely to remain as strong net refin-
The fear is not unfounded, given elec- ing capacity addition will lag demand growth,
tions in three states and the Lok Sabha polls thereby, supporting the refining margins in
slated within the next 12 months. The Union longer term. Also, tightening marine fuel norms
government has passed on the recent spike will increase demand for light crude as refiners
in crude oil prices to consumers. However, try to minimize heavy bottom products. As a
the policy might change going forward. result, light-heavy differential will expand go-
Retail prices of diesel and petrol in In- ing forward. OMCs with improved refinery
dia have been deregulated and move in line technology can also capitalize on increasing
with global trends. However, that was not heavy crude diet and, thereby, make the most
the case in the end June 2018 quarter. Their of spreads expansion.
prices were not hiked for 19 days from 24 Profitability of the Indian refining sector
April 24 in the run-up to the Karnataka has been on an upswing for the last three
polls. A similar trend was witnessed in the years due to benign crude oil prices. Aggre-
end December 2017 quarter, when elections gate OMCs PSUs’ profit increased to Rs
to the Gujarat assembly were held. 39637 crore in the fiscal year ended March
Brent crude oil witnessed an upward 2018 (FY 2018) from Rs 11217 crore in FY
trajectory in the past two quarters. Prices 2015 as the average Brent crude oil prices
are currently trading at four years high lev- declined to US$ 57.9 per barrel in FY2018 as
els of US $70-75 per barrel. In addition, the against US $ 86.4 per barrel in FY 2015. Profit
depreciation of the rupee has added to the also got a lift from supportive government
woes. The consequent high petrol and die- policies to spare oil companies of subsidy
sel prices are resulting in uncertainty over burden. Under-recoveries of oil marketing
OMCs’ ability to pass them on to the cus- companies dipped to Rs 28237 crore in
tomers. These concerns have weighed on FY2018 from Rs 143738 crore in FY 2014.
the performance of the PSU OMC stocks. With the deregulation of diesel prices in 2014,
Strong operating performance
OMCs PSUs’ profit increased to Rs 39637 crore in the fiscal year ended March 2018
(FY 2018) from Rs 11217 crore in FY 2015
COMPANY CMP MCAP TTM NET SALES TTMPBIT TTM PBIDT TTM PAT TTM EV/ TTM
(Rs) (Rscr) (Rscr) VAR(%) (Rscr) VAR(%) MARGIN (%) (Rscr) VAR(%) EBITDA PE
IOCL 157 152864 424037 17.8 36013 21.0 8.5 21346 11.7 5.8 8.0
BPCL 376 81640 236313 16.9 12031 4.3 5.3 7919 -1.5 8.0 11.7
HPCL 272 41494 218474 17.0 9769 2.2 5.1 6357 2.4 6.8 8.3
CMP as on 9 July 2018
Jul 16 – 29, 2018 CAPITAL MARKET
subsidies are applicable only on domestic
LPG and kerosene supplied through the pub-
lic distribution system are applicable. Un-
der-recoveries on diesel were only up to 18
October 2014. LPG under-recoveries are part
of direct benefit transfer from Q1 of FY2016.
Global oil demand is expected to grow
1.4 million barrels per day (mbd) in CY 2018
due to improved global economic outlook and
strong petrochemical feedstock demand. Glo-
bal oil demand growth was 1.6 mbd in CY
2017 compared with the 10-year average
growth of 1.1 mbd even in a rising crude oil
price environment. Global refinery utiliza-
tion remained high at 82.8% in CY 2017 com-
pared with a five-year average of 81.3%.
India is emerging as a refinery hub and
refining capacity exceeds the demand. The
country’s refining capacity has increased
from a modest 62 million tonnes per an-
num (mtpa) in CY 1998 to 247.566 mtpa
at present, comprising 23 refineries: 18
PSUs, three private sector and two joint
ventures (JVs). The refining capacity is not
only sufficient for domestic consumption
but leaves a substantial surplus also for
export of petroleum products. Since FY
2002, India is a net exporter of petroleum
products. The country exported 44.3 mmt
of petroleum products worth US $ 2170
crore in April-November 2017. India is the
largest exporter of petroleum products in
Asia since August 2009.
Outlook
With several state elections scheduled in FY
2019 and national elections due in May 2019,
the Central government is likely to partially
manage the price of auto fuels (although
petrol and diesel prices are de-regulated) as
international oil prices have increased
sharply to US $75-80 per barrel and the
Indian rupee has also depreciated to around
Rs 68 against the US dollar. Hence, the fre-
quent control of auto fuel prices in the elec-
tion-heavy year could make the marketing
earnings volatile and result in poor earnings
predictability for OMCs. Inven-
tory gains due to higher crude oil
prices could offset the negative
impact of falling marketing margins
TTM MCAP/ and GRMs of the three state-
owned oil fuel marketers in the quar-
SALES
ter ended June. Gross marketing
0.3
margin is the mark-up earned by
0.3
fuel marketers on the sale of every
0.2 liter of petrol and diesel.
— Sandeep Kumar
15
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InFocus
Indian Rupee
Kicked down
The Rupee has already seen a massive decline
and a further drop from hereon could be limited
Indian Rupee fell to a fresh all time low
above 69 per US dollar in first week of July
as heightened concerns about an impending
global trade war and soaring crude oil prices
hit the sentiments. The Rupee has been in a
rapid decline over last few weeks which is a
bit ironic given that the local equities have
steadied from a frantic selloff in March-
April and US dollar index has also been in a
tight range after coming off a one year high.
The local currency, which is down around
8% this year, has been pressured by a sell-
off in emerging markets driven by and on
worries of a widening current account defi-
cit from the rising price of oil, India’s big-
gest import item. The trend in Indian crude
oil imports is expected to stay upward given
the performance on the domestic produc-
tion front. According to Core Industries
output data, Indian Crude Oil production
declined by 2.9% in May 2018 over May
2017. Its cumulative index declined by 1.9%
during April to May 2018-19 over the cor-
responding period of previous year.
Rupee’s latest trends show an interest-
ing picture. The currency had hit a two and
half year high around 63.25 early 2018 but
those gains proved fickle amid a solid spurt
in crude prices. Even a rather moderate re-
covery in local stocks after the NIFTY tested
its six month low of 9950 in March 2018
failed to support the INR. The RBI hiked
interest rates for the first time in four and
half years in June 2018 and indicated further
monetary policy tightening in case if infla-
tion stayed abound. Rising interest rates nor-
mally tend to support a currency though the
INR seems to be oblivious to it right now.
Selling pressure weighed on other emerging
market currencies throughout this period. The
MSCI EM Currency index fell to a one year
low around 1600 early July 2018. The index
has shed around 6% in last six months. Heavy
losses in emerging market equities has been a
primary season for this slide. However, the
INR has slipped much more than the other
EM currencies despite a generally improving
economic scenario.
One of the major reasons for the quick
decline in the INR could be the heavy selling
18
A swift slide
Indian Rupee fell to a fresh all time low
above 69 per US dollar in first week of
July as heightened concerns about an
impending global trade war
US$ vs Indian rupee
by the Foreign Portfolio Investors in the
local markets in recent months. The FPIs
were net sellers for April, May and June
with a massive offloading in debt segments
in particular. The Total FPI investments in
calendar year 2018 stand at -44741 crore till
7th July 2018. The net position in equities
was Rs -4196 crore while the debt market
holding stood at -40543 crore. The FPI had
bought in a total of Rs 2 lakh crore (Rs 51252
in equities and Rs 148808 in debt securities
in CY2017.
A rather distorted trend in exports could
also a factor which could explain why INR
has more or less weary over last couple of
quarters. India’s trade deficit increased to
$160 billion in FY18 from $112.4 billion in
FY17. Pressure on external front stayed in
place even as exports edged up in current
fiscal. The cumulative value of exports for
the period April-May 2018 was $54.77 bil-
lion as against $ 48.65 billion registering a
positive growth of 12.58 %. The Cumula-
tive value of imports for the period April-
May 2018 was $83.11 billion as against $
75.74 billion, rising 9.72%. India’s crude oil
imports during May 2018 were valued at
$11.50 Billion, up 49.46% compared to US
$ 7.69 Billion in May 2017. Oil imports
during April-May 2018 were valued at
$21.91 billion, recording a jump of 45.56%
compared to US $15.05 billion in the corre-
sponding period last year. Oil prices raced
up towards a four year high above $70 per
barrel during this period and stayed elevated
thereafter too.
However, the domestic economic cues
remain supportive. According to the min-
utes of latest RBI meeting, the Gross do-
mestic product (GDP) growth for 2017-18
has been estimated at 6.7%, up by 0.1 per-
centage point from the second advance esti-
mates released on February 28. This increase
in growth has been underpinned by a sig-
nificant upward revision in private final con-
sumption expenditure (PFCE) due especially
to improved rural demand on the back of a
bumper harvest and the government’s thrust
on rural housing and infrastructure. Quar-
terly data suggest that the economy grew at
7.7% in Q4:2017-18 – the fastest pace in
the last seven quarters. Gross fixed capital
formation (GFCF) growth accelerated for
three consecutive quarters up to Q4.
On the supply side, estimates of agri-
culture and allied activities have been revised
upwards, supported by an all-time high pro-
duction of foodgrains and horticulture dur-
ing the year. On a quarterly basis, agricul-
ture growth increased sharply in Q4:2017-
18. Industrial growth also strengthened, re-
flecting the robust performance of manufac-
turing, which accelerated for three consecu-
tive quarters in Q4. The output of eight core
industries accelerated in April on account of
a sharp expansion in coal production, which
reached a 42-month peak. As per the early
results of the Reserve Bank’s April-June
round of the industrial outlook survey (IOS),
economic activity is expected to expand at a
lower rate in Q1:2018-19 due to a signifi-
cant rise in input prices and perceptions of
softening domestic and external demand con-
ditions. However, the manufacturing PMI
remained in an expansionary mode for the
tenth consecutive month in May on the back
of new domestic orders and exports.
Outlook
The recent trends make it clear that the FIIs
have been more dominant in selling their
holdings in debt segment that equity seg-
ment. Given the momentum in global mar-
kets and the lingering concerns about global
trade wars, there is a possibility that the
local stocks might witness a choppy action
in near term. However, the Rupee has al-
ready seen a massive decline and a further
drop from hereon could be limited. It would
take a sharp surge in US dollar index for
INR to break below 70 per dollar levels.
— Sachin Dhabade
Jul 16 – 29, 2018 CAPITAL MARKET
InFocus

Conducive climate
Companies reporting annual data for FY18 and earning more than 4% via exports
COMPANY NET SALES FOREX EARNINGS (FE) FE TO SALES COMPANY NET SALES FOREX EARNINGS (FE) FE TO SALES
(Rs cr) (Rs cr) (%) (Rs cr) (Rs cr) (%)
MPS 218.34 218.18 99.93 Alkyl Amines 616.18 109.09 17.70
Mastek 162.32 160.26 98.73 Saregama India 345.61 60.26 17.44
Infosys 61941 60329 97.40 Guj. Ambuja Exp 3364.43 576.29 17.13
Mindtree 5325 5179.5 97.27 Zee Entertainmen 5795.6 978.9 16.89
TCS 97356 92258 94.76 Mafatlal Inds. 1167.6 190.06 16.28
Cyient 1439.7 1326.6 92.14 Supreme Petroch. 3026.61 480.97 15.89
ASM Technologies 76.19 69.72 91.51 Indo Rama Synth. 2255.64 356.2 15.79
Husys Consulting 22.87 20.65 90.29 Orient Paper 661.36 102.73 15.53
CCL Products 823.33 738.02 89.64 Tuticorin Alkali 133.59 20.36 15.24
Tata Elxsi 1386.3 1237.08 89.24 Essel Propack 829.71 122.57 14.77
Wipro 44710 39180.7 87.63 Goodricke Group 730.26 107.81 14.76
DHP India 52.28 44.66 85.42 Seshasayee Paper 1104.65 158.29 14.33
Indian Metals 1765.6 1487.09 84.23 Solitaire Mach. 16.37 2.34 14.29
Balkrishna Inds 4447.28 3591.58 80.76
Tata Global 3217.32 458.3 14.24
Sasken Technol. 421.4 331.22 78.60
Thirumalai Chem. 1011.61 143 14.14
Kitex Garments 557.25 424.2 76.12
Apcotex Industri 538.25 75.22 13.97
HEG 2750.06 1861.58 67.69
Uflex 3873.75 503.55 13.00
Reliance Inds. 290042 169763 58.53
CEAT 6161.34 760.9 12.35
M M Forgings 620.62 345.46 55.66
GE T&D India 4331.71 528.94 12.21
Asian Hotels (W) 140.33 71.36 50.85
ITC 40627.54 4189 10.31
KDDL Ltd 145.81 73.68 50.53
Artson Engg. 132.1 13.43 10.17
Biocon 2419.2 1205.8 49.84
Tata Steel 59616.82 5898.19 9.89
Suraj 190.2 93.44 49.13
Apollo Tyres 10299.7 973.27 9.45
Asian Hotels (N) 274.44 132.47 48.27
Manugraph India 184.67 16.29 8.82
Atul 3107.49 1483.94 47.75
Rajratan Global 218.37 17.17 7.86
Sundaram Brake 246.98 99.76 40.39
Responsive Ind 1085.91 426.5 39.28 Ashok Leyland 26650.07 2092.7 7.85
Bajaj Auto 25164.92 9281.46 36.88 Info Edg.(India) 915.49 71.7 7.83
Shreyas Shipping 540.59 198.74 36.76 Josts Engg. Co. 90.38 6.79 7.51
Bharat Gears 507.39 169.48 33.40 GlaxoSmith C H L 4316.51 301.4 6.98
Graviss Hospital 47.2 15.36 32.54 Orient Electric 1634.37 112.99 6.91
EIH 1350.28 435.5 32.25 NELCO 31.9 2.15 6.74
Rallis India 1498.42 471.85 31.49 Kirl. Brothers 1912.5 126.58 6.62
Wendt India 129.42 40.61 31.38 Oberoi Realty 974.19 60.48 6.21
Birla Cable 325.05 99.84 30.72 Coromandel Inter 10943.11 618.27 5.65
Oriental Hotels 356.86 108.29 30.35 Tata Power Co. 7536.59 398 5.28
Indian CardCloth 59.19 15.87 26.81 Voith Paper 94.11 4.93 5.24
Rane Engine Val. 379.29 100.88 26.60 Raymond 3011.56 149.58 4.97
NOCIL 967.64 253.96 26.25 Sanghi Inds. 1052.02 49.68 4.72
Bhageria Indust. 366.85 93.1 25.38 Keltech Energies 202.1 9.42 4.66
Carborundum Uni. 1576.23 357.1 22.66 Singer India 421.5 19.09 4.53
Phillips Carbon 2546.98 557.72 21.90 Emami 2353.99 106.29 4.52
Navneet Educat. 1132.24 240.04 21.20 Colgate-Palm. 4187.97 187.57 4.48
Lak. Mach. Works 2496.91 519.62 20.81 Rane Brake Lin. 506.14 22.43 4.43
IFB Agro Inds. 889.09 180.58 20.31 Kirl.Pneumatic 600.5 26.53 4.42
GHCL 2905.65 587.12 20.21 Kesoram Inds. 3587.11 154.89 4.32
Mac Charles(I) 72.96 14.4 19.74 V I P Inds. 1442.68 62.08 4.30
Tinplate Co. 1917.8 372.67 19.43 Suzlon Energy 6166.48 261.44 4.24
Guj. Borosil 198.06 38.47 19.42 Super Sales Ind. 254.3 10.43 4.10
Bimetal Bearings 182.13 34.02 18.68 Exide Inds. 9186.32 371.64 4.05
Internat. Paper 1264 225.83 17.87 Figures in Rs crore, Consolidated figures

Jul 16 – 29, 2018 CAPITAL MARKET 19

MarkedToMarket
MarkedToMarket
IPO Performance

A lukewarm performance
All the issues listed in July 2018 are trading near flat from their offer and listing prices

COMPANY ISSUE TIMES OFFER LIST LIST LIST LIST LIST PRICE HIGH /LOW VAR. (%) VAR(%)
OVER PRICE PRICE PRICE PRICE PRICE DATE 09-JUL-2018 FRM DATE FRM OFFER FRM LIST
CLOSE SUBSCB (Rs) OPEN CLOSE HIGH LOW (Rs) OF LISTING PRICE PRICE
(Rs) (Rs) (Rs) (Rs) (Rs)
Rajnish Wellness 29-Jun-18 1.06 95.00 100.00 100.15 104.70 100.00 9-Jul-18 100.15 105/100 5.42 0.15
Bright Solar 29-Jun-18 1.36 36.00 36.60 36.95 38.40 36.50 9-Jul-18 36.95 38/37 2.64 0.96
Varroc Engineer 28-Jun-18 2.66 967.00 1032.00 1040.55 1062.00 1000.00 6-Jul-18 1040.55 1062/1000 7.61 0.83
Fine Organic 22-Jun-18 8.99 783.00 815.00 822.80 834.00 787.00 2-Jul-18 803.25 860/787 2.59 -1.44
Rites 22-Jun-18 66.95 185.00 190.00 212.70 224.40 190.00 2-Jul-18 195.70 224/190 5.78 3.00
Accuracy Shippi. 14-Jun-18 1.29 84.00 88.00 86.10 90.00 84.00 22-Jun-18 87.00 90/84 3.57 -1.14
Priti Internati. 13-Jun-18 4.84 75.00 81.00 81.25 83.70 81.00 21-Jun-18 97.50 99/77 30.00 20.37
Shreeoswal Seeds 12-Jun-18 3.76 26.00 27.85 27.00 27.85 27.00 20-Jun-18 28.40 31/26 9.23 1.97
Sonam Clock 6-Jun-18 2.26 36.00 37.00 36.95 37.50 36.75 14-Jun-18 36.90 38/36 2.50 -0.27
Palm Jewels 4-Jun-18 1.04 30.00 37.50 35.85 37.50 35.65 12-Jun-18 31.15 38/29 3.83 -16.93
Waa Solar 4-Jun-18 1.41 161.00 158.00 153.15 158.00 152.10 12-Jun-18 66.95 159/55 -58.42 -57.63
Nakoda Group 29-May-18 1.22 35.00 36.00 35.25 36.50 35.25 6-Jun-18 36.75 39/34 5.00 2.08
Arihant Instit. 28-May-18 2.00 30.00 29.95 29.25 30.05 28.75 5-Jun-18 31.40 32/28 4.67 4.84
Latteys Industr. 28-May-18 2.24 66.00 68.00 66.20 68.00 64.60 5-Jun-18 65.45 68/57 -0.83 -3.75
Debock Sales 28-May-18 1.36 20.00 20.95 20.35 21.00 20.10 5-Jun-18 17.35 21/15 -13.25 -17.18
Affordable Robo. 28-May-18 4.39 85.00 90.05 94.55 94.55 86.00 4-Jun-18 107.85 131/86 26.88 19.77
Shree Vasu Logis 25-May-18 1.36 45.00 48.00 48.50 48.70 48.00 4-Jun-18 55.80 56/48 24.00 16.25
Suumaya Lifesty. 25-May-18 1.13 18.00 18.00 17.85 18.00 17.60 4-Jun-18 18.35 19/18 1.94 1.94
Sirca Paints 22-May-18 10.59 160.00 162.00 164.80 165.00 157.00 30-May-18 148.50 165/138 -7.19 -8.33
Megastar Foods 16-May-18 0.00 30.00 30.50 31.00 31.95 30.50 24-May-18 44.90 59/31 49.67 47.21
Innovators 16-May-18 22.54 72.00 72.00 75.60 75.60 69.00 24-May-18 56.80 76/55 -21.11 -21.11
U. H. Zaveri 14-May-18 1.27 36.00 27.00 25.65 27.00 25.65 22-May-18 20.50 32/20 -43.06 -24.07
Five Core Elect. 11-May-18 1.44 140.00 140.90 145.50 147.90 138.00 21-May-18 145.50 148/138 3.93 3.26
Milestone Furn. 11-May-18 3.54 45.00 45.00 44.45 45.45 42.75 21-May-18 30.00 45/21 -33.33 -33.33
Indostar Capital 11-May-18 6.77 572.00 600.00 585.50 606.30 578.50 21-May-18 515.20 607/496 -9.93 -14.13
E2E Networks 7-May-18 69.07 57.00 85.00 89.00 89.25 84.00 15-May-18 69.00 90/64 21.05 -18.82
Akshar Spintex 3-May-18 4.85 40.00 40.00 38.00 40.25 38.00 11-May-18 26.10 40/25 -34.75 -34.75
Indo US Bio-Tech 3-May-18 18.14 51.00 55.05 57.80 57.80 55.05 11-May-18 52.75 64/52 3.43 -4.18
Softtech Engi. 3-May-18 28.44 80.00 88.00 92.40 92.40 84.00 11-May-18 56.00 95/55 -30.00 -36.36
Godha Cabcon 3-May-18 1.61 33.00 31.90 33.05 33.45 30.35 11-May-18 27.20 33/27 -17.58 -14.73
Dhruv Consult. 2-May-18 2.37 54.00 53.40 56.05 56.05 52.55 10-May-18 45.80 59/42 -15.19 -14.23
Dr Lalchand. Lab 27-Apr-18 3.21 30.00 29.95 28.50 29.95 28.50 9-May-18 27.00 30/23 -10.00 -9.85
Aakash Explor. 19-Apr-18 1.28 56.00 55.75 57.00 57.00 53.00 27-Apr-18 33.00 59/33 -41.07 -40.81
Mahickra Chem. 18-Apr-18 25.51 25.00 45.85 45.00 45.85 45.00 26-Apr-18 45.80 55/39 83.20 -0.11
Garv Industries 17-Apr-18 1.42 10.00 10.00 10.00 10.30 10.00 25-Apr-18 7.49 10/7 -25.10 -25.10
Penta Gold 27-Mar-18 0.56 37.00 37.00 37.00 37.00 36.50 25-Apr-18 37.90 42/35 2.43 2.43
Bombay Super Hyb 17-Apr-18 8.60 60.00 60.00 63.00 63.00 57.00 25-Apr-18 142.00 145/57 136.67 136.67
Power & Instrum. 13-Apr-18 8.75 33.00 35.00 34.90 35.90 34.00 23-Apr-18 20.00 36/17 -39.39 -42.86
Narmada Agrobase 11-Apr-18 1.02 32.00 31.45 32.40 32.70 31.00 19-Apr-18 23.50 33/22 -26.56 -25.28
Vera Synthetic 4-Apr-18 3.22 40.00 45.00 42.75 45.00 42.75 12-Apr-18 41.00 49/37 2.50 -8.89
S.S. Infra. Dev. 5-Apr-18 10.52 40.00 42.95 43.10 43.90 41.20 12-Apr-18 25.80 51/23 -35.50 -39.93
Soni Soya 4-Apr-18 2.52 25.00 26.00 25.50 26.00 25.00 12-Apr-18 24.90 26/22 -0.40 -4.23

20 Jul 16 – 29, 2018 CAPITAL MARKET

MarkedToMarket

COMPANY ISSUE TIMES OFFER LIST LIST LIST LIST LIST PRICE HIGH /LOW VAR. (%) VAR(%)
OVER PRICE PRICE PRICE PRICE PRICE DATE 09-JUL-2018 FRM DATE FRM OFFER FRM LIST
CLOSE SUBSCB (Rs) OPEN CLOSE HIGH LOW (Rs) OF LISTING PRICE PRICE
(Rs) (Rs) (Rs) (Rs) (Rs)
MMP Industries 4-Apr-18 1.13 188.00 190.00 199.50 199.50 190.00 12-Apr-18 190.20 256/187 1.17 0.11
AVG Logistics 3-Apr-18 2.05 107.00 113.00 118.55 118.65 112.00 11-Apr-18 97.85 156/90 -8.55 -13.41
Lemon Tree Hotel 28-Mar-18 1.14 56.00 61.60 71.60 73.90 57.30 9-Apr-18 72.85 91/57 30.09 18.26
Taylormade Renew 27-Mar-18 1.14 35.00 36.00 37.80 37.80 35.80 6-Apr-18 32.05 40/27 -8.43 -10.97
Orissa Bengal 26-Mar-18 1.08 30.00 31.90 33.45 33.45 31.90 5-Apr-18 42.00 56/32 40.00 31.66
Kapston Facilit. 23-Mar-18 1.11 92.00 92.50 92.55 93.00 92.10 4-Apr-18 95.20 109/88 3.48 2.92
Lex Nimble Solu. 23-Mar-18 1.03 57.00 58.65 55.35 58.65 55.35 4-Apr-18 44.35 59/31 -22.19 -24.38
Continental Seed 23-Mar-18 1.17 26.00 26.00 25.75 27.30 24.70 4-Apr-18 13.00 27/12 -50.00 -50.00
Mishra Dhatu Nig 23-Mar-18 1.21 90.00 87.00 90.00 90.90 86.35 4-Apr-18 127.60 177/86 41.78 46.67
ICICI Sec 26-Mar-18 0.99 520.00 431.10 445.05 462.70 431.10 4-Apr-18 311.30 463/290 -40.13 -27.79
Benara Bearing 22-Mar-18 1.61 63.00 64.00 61.95 64.00 61.00 3-Apr-18 55.90 69/49 -11.27 -12.66
Giriraj Civil 21-Mar-18 1.09 100.00 101.00 100.10 101.00 100.10 2-Apr-18 139.55 168/100 39.55 38.17
Mittal Life 21-Mar-18 1.03 21.00 21.00 21.00 21.00 21.00 2-Apr-18 23.90 24/21 13.81 13.81
Karda Construct. 21-Mar-18 1.32 180.00 136.00 142.80 142.80 136.00 2-Apr-18 166.45 209/136 -7.53 22.39
Yasho Industries 21-Mar-18 0.94 100.00 101.25 100.25 101.25 100.00 2-Apr-18 108.00 122/100 8.00 6.67
Sandhar Tech 21-Mar-18 6.12 332.00 345.00 322.55 351.45 318.55 2-Apr-18 380.30 451/306 14.55 10.23
Uravi T 20-Mar-18 1.08 100.00 102.50 102.15 102.75 102.00 28-Mar-18 105.00 107/101 5.00 2.44
Hind.Aeronautics 20-Mar-18 0.99 1215.00 1169.00 1128.35 1184.00 1117.60 28-Mar-18 819.60 1184/814 -32.54 -29.89
Bandhan Bank 19-Mar-18 10.52 375.00 485.00 477.20 498.40 455.00 27-Mar-18 556.10 567/455 48.29 14.66
Ridings Consult. 16-Mar-18 1.24 18.00 18.50 18.00 18.50 18.00 26-Mar-18 21.20 27/18 17.78 14.59
Advitiya Trade 16-Mar-18 1.04 15.00 15.01 15.76 15.76 15.01 26-Mar-18 16.65 32/14 11.00 10.93
Active Clothing 16-Mar-18 1.02 65.00 64.95 65.65 66.40 61.75 26-Mar-18 37.50 66/32 -42.31 -42.26
Marvel Decor 15-Mar-18 1.29 57.00 57.75 57.85 59.00 51.00 23-Mar-18 55.80 62/51 -2.11 -3.38
Tara Chand 15-Mar-18 2.36 55.00 49.00 49.05 56.05 47.70 23-Mar-18 40.50 56/40 -26.36 -17.35
Bharat Dynamics 15-Mar-18 1.28 428.00 360.00 390.70 402.80 360.00 23-Mar-18 372.15 428/360 -13.05 3.38
Macpower CNC 14-Mar-18 3.54 140.00 149.00 162.05 164.95 140.00 22-Mar-18 224.25 306/140 60.18 50.50
Shreeshay Engi. 13-Mar-18 1.05 15.00 15.25 15.23 15.25 15.05 21-Mar-18 18.00 19/15 20.00 18.03
Inflame Applian. 8-Mar-18 2.25 54.00 53.35 50.70 53.35 50.70 16-Mar-18 41.00 53/29 -24.07 -23.15
Uniinfo Telecom 7-Mar-18 1.93 55.00 56.00 55.75 56.80 52.50 15-Mar-18 39.00 57/36 -29.09 -30.36
Sarveshwar Foods 7-Mar-18 1.41 85.00 83.00 70.55 83.00 68.05 15-Mar-18 46.35 83/40 -45.47 -44.16
EAST INDIA SEC. 7-Mar-18 1.48 920.00 921.90 930.00 931.00 921.90 13-Mar-18 946.00 958/922 2.83 2.61
H.G. Infra Engg. 28-Feb-18 4.87 270.00 270.00 270.05 276.00 252.60 9-Mar-18 262.65 356/233 -2.72 -2.72
Hindcon Chemical 28-Feb-18 129.57 28.00 33.60 29.30 33.60 29.00 9-Mar-18 22.00 34/20 -21.43 -34.52
Angel Fibers 23-Feb-18 3.12 27.00 28.50 27.10 28.50 27.10 6-Mar-18 28.70 44/27 6.30 0.70
CKP Leisure 23-Feb-18 1.34 30.00 27.00 29.90 30.05 27.00 6-Mar-18 18.00 31/18 -40.00 -33.33
Banka Bioloo 16-Feb-18 1.03 115.00 114.00 115.00 120.00 114.00 27-Feb-18 102.00 120/82 -11.30 -10.53
Aster DM Health. 15-Feb-18 1.18 190.00 182.10 179.85 187.80 176.45 26-Feb-18 167.70 194/140 -11.74 -7.91
Arvee Laborat. 14-Feb-18 2.57 61.00 60.95 62.50 66.50 60.50 22-Feb-18 51.00 67/49 -16.39 -16.32
Bhatia Communic. 12-Feb-18 1.13 150.00 153.95 150.10 153.95 150.00 21-Feb-18 183.60 189/149 22.40 19.26
Tasty Dairy 12-Feb-18 91.92 45.00 50.75 48.35 52.45 48.25 21-Feb-18 35.50 54/34 -21.11 -30.05
South West Pinn. 8-Feb-18 37.61 78.00 93.60 88.30 93.60 75.50 19-Feb-18 71.90 94/66 -7.82 -23.18
Kenvi Jewels 7-Feb-18 1.11 36.00 35.10 39.10 43.20 31.05 16-Feb-18 13.00 43/13 -63.89 -62.96
Mohini Health 7-Feb-18 20.42 42.00 50.40 50.40 50.40 50.40 16-Feb-18 47.50 82/44 13.10 -5.75
Sintercom India 7-Feb-18 36.93 65.00 78.00 78.00 78.00 78.00 15-Feb-18 68.00 92/64 4.62 -12.82
Lorenzini Appar. 6-Feb-18 1.04 10.00 10.20 9.25 10.20 8.25 15-Feb-18 5.25 10/5 -47.50 -48.53
A and M Jumbo 2-Feb-18 5.75 65.00 70.50 66.55 73.80 66.50 12-Feb-18 74.50 96/59 14.62 5.67
Focus Suites Sol 1-Feb-18 172.15 18.00 21.60 21.60 21.60 21.60 9-Feb-18 21.50 43/20 19.44 -0.46
Medico Remedies 31-Jan-18 1.57 100.00 100.00 97.15 100.00 90.00 8-Feb-18 97.00 101/90 -3.00 -3.00
Gujarat Hy-Spin 31-Jan-18 3.93 10.00 10.35 10.81 11.90 10.00 8-Feb-18 7.03 12/7 -29.70 -32.08

Jul 16 – 29, 2018 CAPITAL MARKET 21

MarkedToMarket

COMPANY ISSUE TIMES OFFER LIST LIST LIST LIST LIST PRICE HIGH /LOW VAR. (%) VAR(%)
OVER PRICE PRICE PRICE PRICE PRICE DATE 09-JUL-2018 FRM DATE FRM OFFER FRM LIST
CLOSE SUBSCB (Rs) OPEN CLOSE HIGH LOW (Rs) OF LISTING PRICE PRICE
(Rs) (Rs) (Rs) (Rs) (Rs)
Galaxy Surfact. 31-Jan-18 14.20 1480.00 1520.00 1698.10 1732.00 1520.00 8-Feb-18 1261.80 1743/1240 -14.74 -16.99
Gautam Gems 30-Jan-18 4.60 36.00 34.15 34.60 43.00 28.80 7-Feb-18 105.75 109/29 193.75 209.66
Vasa Retail 29-Jan-18 200.62 30.00 36.00 36.00 36.00 36.00 6-Feb-18 41.50 80/36 38.33 15.28
Ashoka Metcast 25-Jan-18 1.24 20.00 16.00 16.00 16.00 16.00 5-Feb-18 4.52 16/4 -77.40 -71.75
Solex Energy 25-Jan-18 17.91 52.00 43.50 51.20 52.20 42.00 5-Feb-18 39.00 52/39 -25.00 -10.34
Shree Ram Proti. 25-Jan-18 4.27 31.00 28.95 32.55 33.45 28.95 5-Feb-18 29.90 37/29 -3.55 3.28
CRP Risk Mgt. 22-Jan-18 2.00 60.00 48.00 49.70 56.75 48.00 31-Jan-18 52.25 67/34 -12.92 8.85
Amber Enterp. 19-Jan-18 115.32 859.00 1180.00 1237.25 1263.00 1114.10 30-Jan-18 1017.75 1327/883 18.48 -13.75
Newgen Software 18-Jan-18 8.17 245.00 253.00 253.00 266.50 245.95 29-Jan-18 240.65 272/215 -1.78 -4.88
Apollo Micro Sys 12-Jan-18 250.71 275.00 478.00 454.10 479.95 454.10 22-Jan-18 149.00 480/145 -45.82 -68.83
SKS Textiles 11-Jan-18 14.41 150.00 149.90 133.35 151.00 131.10 19-Jan-18 37.95 151/36 -74.70 -74.68
Silly Monks 10-Jan-18 17.43 120.00 144.00 144.00 144.00 144.00 18-Jan-18 86.10 189/85 -28.25 -40.21
Jhandewala Foods 4-Jan-18 263.09 55.00 66.00 66.00 66.00 66.00 12-Jan-18 51.85 94/38 -5.73 -21.44
Rithwik Facility 3-Jan-18 41.38 50.00 60.00 45.45 60.00 43.50 11-Jan-18 46.50 60/32 -7.00 -22.50
Brand Concepts 2-Jan-18 11.01 45.00 54.00 54.00 54.00 54.00 10-Jan-18 36.00 85/33 -20.00 -33.33
Moksh Ornaments 26-Dec-17 96.04 37.00 44.40 44.40 44.40 44.40 3-Jan-18 23.50 62/20 -36.49 -47.07
Ajooni Biotech 22-Dec-17 57.24 30.00 36.00 36.00 36.00 36.00 2-Jan-18 21.55 57/20 -28.17 -40.14
Astron Paper 20-Dec-17 241.14 50.00 114.00 119.70 119.70 113.10 29-Dec-17 112.15 177/101 124.30 -1.62
SMVD Poly Pack 15-Dec-17 14.65 55.00 58.00 53.60 59.00 48.20 26-Dec-17 22.00 59/19 -60.00 -62.07
One Point One 15-Dec-17 82.61 67.00 80.40 80.40 80.40 80.40 26-Dec-17 55.55 111/55 -17.09 -30.91
Kids Medical 14-Dec-17 8.85 30.00 32.40 34.35 36.00 24.50 22-Dec-17 28.70 56/25 -4.33 -11.42
Diggi Multitrade 14-Dec-17 1.94 13.00 13.25 13.03 14.20 12.85 22-Dec-17 6.94 15/7 -46.62 -47.62
Touchwood Enter. 13-Dec-17 4.67 40.00 43.50 48.00 48.00 43.50 21-Dec-17 49.40 83/31 23.50 13.56
MRC Exim 8-Dec-17 5.24 15.00 15.00 12.50 15.00 12.00 18-Dec-17 5.30 15/5 -64.67 -64.67
Future Supply 8-Dec-17 5.57 664.00 674.00 685.80 698.70 660.05 18-Dec-17 664.25 750/620 0.04 -1.45
Shalby 7-Dec-17 2.27 248.00 237.00 239.25 254.65 236.15 15-Dec-17 165.30 274/161 -33.35 -30.25
Ratnabhumi Dev. 6-Dec-17 1.43 63.00 63.45 63.55 64.90 63.00 14-Dec-17 42.05 65/32 -33.25 -33.73
Dynamic Cables 6-Dec-17 69.25 40.00 48.00 48.00 48.00 48.00 14-Dec-17 33.25 72/33 -16.88 -30.73
Innovana Think. 4-Dec-17 2.35 70.00 77.00 83.60 84.00 75.00 12-Dec-17 462.00 462/75 560.00 500.00
Shradha Infrapr. 30-Nov-17 2.64 70.00 69.80 70.25 72.00 68.00 11-Dec-17 48.00 75/37 -31.43 -31.23
ICE Make Refrig. 30-Nov-17 255.96 57.00 68.40 68.40 68.40 68.40 8-Dec-17 89.00 125/68 56.14 30.12
Zodiac Energy 27-Nov-17 102.06 52.00 62.40 51.10 62.40 49.55 5-Dec-17 28.00 63/27 -46.15 -55.13
Felix Industries 27-Nov-17 4.98 35.00 35.50 35.80 36.05 33.75 5-Dec-17 25.15 42/24 -28.14 -29.15
Silver Touch 23-Nov-17 10.33 121.00 120.00 122.00 126.00 120.00 1-Dec-17 121.50 140/120 0.41 1.25
Ambition Mica 21-Nov-17 1.87 42.00 42.05 43.15 44.45 42.00 29-Nov-17 35.05 52/31 -16.55 -16.65
Sharika Enterpr. 17-Nov-17 58.89 43.00 51.60 51.60 51.60 50.15 27-Nov-17 42.00 65/35 -2.33 -18.60
Vertoz Advertis. 16-Nov-17 4.15 108.00 113.00 129.60 129.60 113.00 24-Nov-17 167.60 322/113 55.19 48.32
Pulz Electronics 16-Nov-17 14.33 54.00 64.80 64.05 64.80 58.30 24-Nov-17 29.70 72/28 -45.00 -54.17
Sanghvi Brands 14-Nov-17 2.55 69.00 75.90 82.80 82.80 74.00 22-Nov-17 69.55 182/63 0.80 -8.37
ANI Integrated 10-Nov-17 199.12 100.00 120.00 120.00 120.00 120.00 20-Nov-17 82.00 190/73 -18.00 -31.67
HDFC Stand. Life 9-Nov-17 3.83 290.00 311.00 344.25 369.00 307.65 17-Nov-17 474.30 547/308 63.55 52.51
Khadim India 6-Nov-17 1.60 750.00 727.00 688.50 740.00 677.30 14-Nov-17 783.45 862/645 4.46 7.76
SecUR Credential 3-Nov-17 3.57 205.00 208.00 198.60 219.80 195.00 13-Nov-17 147.00 272/118 -28.29 -29.33
New India Assura 3-Nov-17 1.19 400.01 374.45 362.53 374.50 358.88 13-Nov-17 308.45 382/267 -22.89 -17.63
Mahindra Logis. 2-Nov-17 5.72 429.00 432.00 429.15 433.95 416.55 10-Nov-17 615.10 653/405 43.38 42.38
Reliance Nip.Lif 27-Oct-17 57.25 252.00 294.00 284.00 298.70 278.00 6-Nov-17 234.95 334/206 -6.77 -20.09
Sheetal Cool 18-Oct-17 30.92 80.00 96.00 86.60 96.00 80.50 30-Oct-17 133.55 197/81 66.94 39.11
Kaarya Facilit. 17-Oct-17 17.88 40.00 43.80 48.00 48.00 36.10 27-Oct-17 27.60 68/28 -31.00 -36.99
Note: Price in Rs adjusted for rights, bonus and splits. Var(%) from offer price and list price as on 09 July 2018.

22 Jul 16 – 29, 2018 CAPITAL MARKET

OverTheCounter
OverTheCounter
Ticker trade Roof One Securities bought 17,89,114
shares of Dewan Housing Finance
Companies witnessing big-ticket transactions Corporation at Rs 623.22 and sold
15,39,114 shares at Rs 622.68.
COMPANY CMP M-CAP 52-WEEK (Rs) VARIATION (%) DIVI. P/E RoE
Pari Washington India Master Fund
(Rs) (Rs cr) HIGH LOW 15 DAYS 1-YEAR YLD (%) TTM (%) bought 33.01 lakh shares of Icra at Rs
Windsor Machines 104.1 675.94 159.9 51.2 -5.1 88.42 0.96 39.29 17.31 3290.99. IIFL Management Services sold
Dewan Housing Fin 618.25 19400.6 680 391.8 -2.12 41.14 0.96 16.66 13.96 3.30 lakh shares at Rs 3291.
Balrampur Chini Mills 63.2 1443.73 182.5 58.8 -6.23 -58.5 3.97 6.5 42.71 Alphagrep Commodities bought
Filatex India 42.45 923.29 50.27 24.82 2.86 47.6 0 15.89 16.51 19,22,215 shares of Rites at Rs 208.34 and
Jet Airways (India) 344.9 3918.06 883.65 327.3 -7.88 -41.75 0 0 5.34
sold them for Rs 208.55. Genuine Stock
Ind Metals & Ferro Allo 372.6 1005.16 794.8 288.45 16.62 -32.13 4.19 5.38 16.7
Brokers bought 10,02,540 shares at
ICRA 3,458.00 3424.55 4180 3072.2 3.51 -14.52 0.88 33.54 19.32
Rs 205.83 and sold them for Rs 20.5.90.
CARE Ratings 1,250.80 3685.01 1800 1181.2 -5.34 -21.84 2.99 22.67 29.96
Two Roads Trading bought 11,33,716 shares
Minda Corporation 160.2 3640.1 229 98.8 -4.1 35.25 0.34 52.45 14.35
at Rs 207.88 and sold them for Rs 207.98.
Strides Shasun Ltd 404.3 3620.46 1066.17 334.1 2.8 -56.97 0 3.95 5.52
Shares of Rites settled at Rs 212.70 on
PTC India Ltd 74.45 2203.79 130.2 72.4 -8.14 -25.25 5.34 6.94 9.76
Adani Ports & SEZ 366.1 75817.54 451.55 350.2 -0.2 -1.61 0.54 29.29 20.38
the BSE, a premium of 14.97% over the issue
IDFC 44.6 7119.76 68 43.9 -8.79 -26.4 1.64 49.14 1.53 price of Rs 185 on its debut on 2 July 2018.
Rites 197.15 3943 224.4 190 -7.31 -7.31 1.41 12.73 15.78 It listed at Rs 190, a premium of 2.7% over
8K Miles Software 377.55 1152.19 1024 302.1 -27.42 -31.57 0 238.91 3.1 the issue price of Rs 185, and hit a high of Rs
Uniply Industries 76.8 1091.4 98.3 47 -7.77 23.61 0 129.07 8.09 224.40 and a low of Rs 190, with 55.66 lakh
Indiabulls Ventures 472.7 28597.37 544.6 161 -2.31 183.56 0.16 0 19.32 shares traded. The issue had opened for
Allcargo Logistics 115.5 2837.78 228.8 99.7 7.19 -32.44 1.65 70.96 7.86 subscription on 20 June 2018 and closed on
Mahindra CIE Auto 256.7 9717.32 276.65 199.2 -4.31 8.27 0 104.86 1.99 22 June 2018. The price band for the issue
V2 Retail Ltd 386.55 1317.13 555.45 231 -4.95 59.5 0 44.08 2.34 was fixed at Rs 180 to Rs 185 per share.
Zee Media Corp 25.25 1188.74 50.15 24 -15.27 -34.92 0 29.89 6.15 Goldman Sachs India Fund bought
Varroc Engineering 1,040.55 14027.81 1062 1000 0 0 0.03 327.22 5.2 2,79,041 shares of Fine Organic Industries
Tube Invest of India 241.55 4532.9 307.55 211 6.34 -9.26 0 30.34 27.84 at Rs 815. Shares had settled at Rs 822.80
Just Dial Ltd 570.3 3843.84 648 326.1 0.98 56.74 0 27.89 5.75 on the BSE, a premium of 5.08% over the
Manpasand Beverages 155.8 1783.32 511.83 128.85 9.45 -59.69 0.31 18.21 8.28 issue price of Rs 783 on its debut on 2 July
Fine Organic Inds 805.9 2470.89 859.85 787 -2.05 -2.05 0.93 30.99 27.97 2018. It listed at Rs 815, a premium of 4.08%
Indian Energy Exch 1,627.30 4935.38 1679.95 1405 1.84 0.05 0 37.46 34.81 over the issue price of Rs 783, and hit a high
CMP: Current market price as on 6 July 2018. P/E on standalone numbers based on TTM ended December 2017 wherever of Rs 834 and a low of Rs 787. day. As
data available, RoE: Return on Equity is for the year ended March 2017.
many as 8.83 lakh shares were traded. The
price band for the issue was fixed at Rs 780
Buying and selling to Rs 783 per share.

Mahindra CIE Auto stake-sale

Promoters of Adani Ports SEZ continue to shed holding
and FII divests Indiabulls Venture
Adroit Financial Services bought 13,21,287
shares of Balrampur Chini Mills at Rs 62.65
and sold them at Rs 62.68.
Jasmine Capital Investments bought
1.35 crore shares of Indiabulls Ventures
at Rs 478.Orient Global Cinnamon Capital
was the seller. Jasmine Capital Investments
bought 1.38 crore shares at Rs 471. Cinnamon
Capital was the seller. It held 8.59% stake
on 15 June 2018.
Swapnil Mehta bought 1,53,706 shares
of 8K Miles Software Services at Rs
347.15 and sold 1,18,706 shares at Rs 346.83.
Kotak Mahindra Investments sold 1,70,000
shares of 8K Miles Software Services at
Rs 323.54.
Crossland Trading Co bought 4,06,320
shares of Just Dial at Rs 574 and 3,78,372
shares at Rs 554.26. Shaastra Securities
Trading bought 5,12,400 shares at Rs 573.34
and 4,80,524 shares at Rs 552.10. Crossland
Trading Co sold 4,06,320 shares at Rs 574.54
and 3,78,372 shares at Rs 554.71. Shaastra
Securities Trading sold 5,12,400 shares at
Rs 573.64 and 4,80,524 shares at Rs 552.46.
Indianivesh Capitals bought 3,40,000
shares of Windsor Machines at Rs 104.97.
Savita Holdings sold 14,00,000 shares
of Filatex India at Rs 45.
Shashi Kiran Janardhan Shetty bought
12,29,180 shares of Allcargo Logistics at
Rs 110.
BP Fintrade bought 26,91,992 shares of
Kwality at Rs 21.29. JMP Securities bought
12,59,075 shares at Rs 21.53.Kshitij
Portfolio bought 15,56,409 shares at Rs
21.39. Multipier S and S Adv bought
12,26,094 shares at Rs 22.14.
BP Fintrade sold 26,91,987 shares of
Kwality at Rs 21.49. JMP Securities sold
12,11,575 shares at Rs 21.41. Kshitij
Portfolio sold 15,56,409 shares at Rs 21.73.
Multiplier S and S Adv sold 11,78,352 shares
at Rs 22.11. Dhingra Sanjay sold 13,00,000
shares of Kwality at Rs 22.07.
Shaastra Securities Trading bought
6,28,441 Shares of Jet Airways (India)at
Rs 340.56 and sold them at Rs 340.80.
Wasatch Advisors A/C Wasatch
International Opp Fund bought 21,03,361
shares of Minda Corporation at Rs 173.43.
K R Handloom sold 30,32,321 shares at Rs
173.45. It held 1.99% stake on 21 May 2018.
Camas Investments bought 1,35,26,309

Jul 16 – 29, 2018 CAPITAL MARKET 23

OverTheCounter

At stake
Fluctuations in the holdings of big-ticket investors
QUARTERLY HOLDING %
PROMOTERS FIIs MFs / UTI
COMPANY 30-MAR-18 31-DEC-17 30-SEP-17 30-JUN-17 30-MAR-18 31-DEC-17 30-SEP-17 30-JUN-17 30-MAR-18 31-DEC-17 30-SEP-17 30-JUN-17
Windsor Machines 58.52 58.52 58.52 58.52 0 0 0 0 0.02 0.02 0.02 0.02
Dewan Housing Fin 39.23 39.23 39.24 39.24 19.92 20.81 22.69 25.03 7.3 7.31 6.67 4.14
Balrampur Chini Mills 40.99 39.84 40.94 40.94 21.41 20.61 23.2 22.74 5.76 5.09 6.85 6.12
Filatex India 57.99 57.99 57.99 57.99 0 0 0 0 0.03 0.03 0.03 0.03
Jet Airways (India) 51 51 51 51 5.23 4.96 5.73 6.63 9.16 9.65 8.72 7.33
Ind Metals & Ferro Alloys 58.69 58.69 58.88 58.88 1.29 1.39 1.05 0.23 2.51 4.07 5.11 7.92
ICRA 50.55 50.55 50.55 50.55 10.73 11.08 10.87 11.11 10 10 9.8 9.73
CARE Ratings 0 0 0 0 42.83 43.55 39.36 38.95 13.15 13.63 16.22 17.64
Minda Corporation 64.67 70.21 70.21 70.21 6.25 2.65 2.25 1.77 3.95 1.61 1.62 1.48
Strides Shasun 31.36 31.36 31.12 31.12 30.85 31.64 33.58 33.87 18.61 18.22 15.05 13.99
PTC India 16.22 16.22 16.22 16.22 33.06 34.47 34.37 34.57 18.08 15.4 12.2 11.3
Adani Ports & SEZ 66.27 65.76 63.34 61.92 18.29 18.29 21.99 24.36 2.23 2.2 3.05 3.55
IDFC 0 0 0 0 32.08 33.13 34.26 29.89 16.17 16.02 15.28 17.13
Rites
8K Miles Software Serv 57.4 59.63 60.14 60.14 0.93 1.05 0.65 0 3.63 2.23 2.23 2.23
Uniply Industries 24.52 19.49 33.42 33.22 8.99 8.9 2.09 2 0 0 0 0
Indiabulls Ventures 36.75 35.89 35.89 34.53 23.11 18.12 16.68 16.45 0 0 0 0
Allcargo Logistics 69.11 69.11 69.11 69.11 15.57 15.79 16.66 16.4 4.26 4.78 6.01 6.1
Mahindra CIE Auto 69.84 69.86 69.86 69.9 5.59 5.72 5.47 4.9 6.34 5.71 4.95 5.19
V2 Retail 51.14 51.36 51 51 9.43 9.44 8.8 5.98 1.67 1.79 2.49 1.99
Zee Media Corpo 69.11 69.11 69.11 69.11 6.29 6.21 6.02 6.02 0.27 0 0 0
Varroc Engineering
Tube Invest of India 48.79 48.8 48.8 10.92 10.91 11.71 13.32 14.2 13.44
Just Dial 33.99 34.24 34.26 34.18 35.93 35.21 31.1 31.47 10.17 9.57 6.32 6.2
Manpasand Beverages 44.17 44.12 44.12 44.14 13.35 21.56 21.93 22.19 10.83 11.6 11.46 11.31
Fine Organic Industries
Indian Energy Exchange 0 0 0 7.32 5.37 0 5.57 6.7 6.03
Institutional holding in % including both FIIs and domestic institutions.

shares of Adani Ports & Special Economic
Zone at Rs 369.65. S B Adani Family Trust
sold 1,35,26,309 shares at Rs 369.65 and
2,70,52,618 shares at Rs 369.65.
Foundation Outsourcing India bought
12,97,242 shares of Uniply Industries at
Rs 80.50 and 10,27,465 shares at Rs 81.10.
Arvind Khattar bought eight lakh shares,
or 2.8% equity, of Uniply Industries at Rs
76.2 each. Premier Investment Fund sold
eight lakh shares, or 2.8% equity, at Rs 76.2
each. Kantamneni Keshav sold 10,27,465
shares at Rs 81.10 and 15,35,000 shares at
Rs 80.44.
Participaciones Ineternacionales
Autometal Dos Sociedad Limi bought
1,89,26,895 shares of Mahindra CIE
Automotive at Rs 255. Mahindra Vehicle
Manufacturers sold 1,89,26,895 shares at
Rs 255. It held 17.25% stake end March 2018.
Dhandho India Zero Fee Fund Offshore
bought 2,04,634 shares of Care Ratings at
Rs 1188.24 and 2,04,634 shares at Rs
1188.24.
Albula Investment Fund bought 1.15
lakh shares, or 0.5% equity, of RPP Infra
Projects at Rs 215.
Birla Sunlife Mutual Fund bought five
lakh shares, or 0.6% equity, of Strides
Shasun at Rs 388.94.
India 2020 Fund II bought two lakh
shares, or 0.6% equity, of V2Retail at
Rs 405 each.
JM Financial Mutual Fund sold 83.29
lakh shares, or 0.5% equity, of IDFC Bank
at Rs 46.48 each.
The bank has received no-objection from
the Reserve Bank of India on 4 June 2018
for the proposed scheme of amalgamation.
Previously, the board of IDFC Bank, a
subsidiary of IDFC, at its meeting held on
13 January 2018, had approved
amalgamation of NBFC Capital First,
Capital First Home Finance and Capital
First Securities with itself under Sections
230 to 232 and other applicable provisions
of the Companies Act, 2013. The scheme
remains subject to receipt of approval from
the respective shareholders and creditors
of the amalgamated company and the
amalgamating companies, National
Company Law Tribunal and other statutory
and regulatory approvals.
On 24 April 2018, the bank passed an
enabling resolution for borrowing long-term
funds by issue of redeemable non-convertible
debentures or other debt instruments including
perpetual debt instruments (part of additional
Tier I capital), Tier II capital bonds and long-
term bonds to finance infrastructure and
affordable housing up to Rs 5000 crore in
one or more tranches from domestic and
overseas markets over one year within the
overall borrowing limit of Rs 1.50 lakh crore.
To conform with the RBI guidelines,
IDFC launched a non-operative financial

24 Jul 16 – 29, 2018 CAPITAL MARKET

OverTheCounter

holding company in 2014 to manage its five

Capital change
subsidiaries: IDFC Bank, IDFC MF, IDFC
Alternatives, IDFC IDF and IDFC Securities. Ownership affected by big deals
Interest earned at Rs 2281 crore in the AVERAGE VOLUMES
March 2018 quarter was near flat compared
with a year-ago period.Net profit after CMP DEAL EQTY CAP. CHNG HAND FORTNIGHT YEARLY
adjustment dropped 76% to Rs 41.93 crore. COMPANY (Rs) PRICE(Rs) (%) VOLUME BSE NSE BSE NSE
Nomura India Investment Fund Mother Adani Ports & SEZ 366.1 369.65 2.61 54105236 7153080 2959017 678377 3426648
Fund sold 12.84 lakh shares, or 1.1% equity, Allcargo Logistics 115.5 110 0.5 1229180 143247 402203 67645 421982
of Manpasand Beverages at Rs 137.02 each. Balrampur Chini Mills 63.2 62.65 0.58 1321287 423554 4587279 392031 3841384
Manpasand Beverages has entered into CARE Ratings 1,250.80 1,188.24 0.69 204634 26761 102945 11253 51826
a ten year agreement with Parle Products Dewan Housing Fin 618.25 623.22 0.57 1789114 226850 6425425 327911 4680539
for joint distribution of their products, pan- Fine Organic Inds 805.9 815 0.91 279041 253092 1523163 253092 1523163
India. As a part of this association, both the ICRA 3,458.00 3,290.99 6.67 660108 55082 1075 3242 1995
companies will jointly distribute their Indiabulls Ventures 472.7 474.46 9.04 54668762 2382547 353981 619234 2566058
Ind Metals & Ferro 372.6 372.64 0.52 141016 19696 119988 28441 122711
products across 4.5 million outlets and aim
Jet Airways (India) 344.9 340.56 0.55 628441 420659 4577003 333821 3311380
to achieve a significant market share in their
Just Dial 570.3 563.69 2.64 1777616 363754 4304635 413087 3826532
respective categories. The board on 27 June
Mahindra CIE Auto 256.7 255 5 18926895 48571 2113622 57608 382300
2018 recommended a final dividend of Rs Rites 197.15 207.59 2.03 4058471 1530377 13021633 1530377 13021633
0.5 per equity share (5%). It changed the Strides Shasun 404.3 388.94 0.56 500000 309771 3453800 137543 1360795
auditor after the earlier auditor refused to V2 Retail 386.55 405 0.59 200000 14517 59347 49596 208412
sign the March 2018 quarter results and quit. Varroc Engg 1,040.55 1,027.69 0.82 1107195 2275292 14543041 2275292 14543041
The share capital rose to Rs 57. 22 crore Windsor Machines 104.1 104.97 0.52 340000 73542 174194 64741 233431
end March 2017 from Rs 3.40 end March Zee Media Corp 25.25 26.1 2.05 9672132 45953 304682 125210 697686
2012 due to the IPO in June 2016. Gross 8K Miles Software 377.55 333.12 0.95 288706 172518 1411467 50810 320343
sales increased 29% to Rs 384.76 crore and Adani Ports & SEZ 366.1 369.65 2.61 54105236 7153080 2959017 678377 3426648
operating profit 26% to Rs 81.12 in the Balrampur Chini Mills 63.2 62.68 0.58 1321287 423554 4587279 392031 3841384
March 2018 quarter over a year ago. Filatex India 42.45 45 0.64 1400000 126743 721977 363086 887371
However, the OPM declined a marginal IDFC 44.6 46.48 0.52 8329200 202364 9087463 1039596 7953618
21.08% from 22.56%. APat was up 27% to Indiabulls Ventures 472.7 474.46 9.04 54668762 2382547 353981 619234 2566058
Indian Energy Ex. 1,627.30 1,586.00 1.22 368601 17712 32310 16951 49693
Rs 42.74 core. It has announced a 1:1 bonus
Jet Airways (India) 344.9 340.8 0.55 628441 420659 4577003 333821 3311380
in September 2017.
Just Dial 570.3 564.09 2.64 1777616 363754 4304635 413087 3826532
UBS Principal Capital Asia sold 16.24
Mahindra CIE Auto 256.7 255 5 18926895 48571 2113622 57608 382300
lakh shares, or 0.5% equity, of PTC India Manpasand Bever 155.8 137.02 1.12 1284538 427372 2408310 58782 404877
at Rs 73.08 each. Minda Corporation 160.2 173.45 1.33 3032321 326552 326429 167309 571848
The focus of the provider of power trading PTC India 74.45 73.08 0.55 1624000 114146 2232811 251540 2362181
solutions, promoted as a public-private Rites 197.15 207.74 2.03 4058471 1530377 13021633 1530377 13021633
partnership initiative, is to develop a Tube Invest of India 241.55 222 1.72 3230000 18970 44729 65878 107032
commercially vibrant power market in the Uniply Industries 76.8 79.63 2.37 3362465 306041 268594 115928 320289
country. Trading activities undertaken by PTC Zee Media Corp 25.25 26.1 2.05 9672132 45953 304682 125210 697686
include long term trading of power generated Eqty cap. chng hands: Equity capital that has changes hands. CMP: current market price as on 6 July 2018.
from large power projects as well as short term
trading arising as a result of supply and demand JSGG Infra Developers bought of shelf stable, all-natural and ready-to-serve
mismatches, which inevitably arise in various 48,36,066 shares of Zee Media ethnic food products operates in the prepared
regions of the country. It has since diversified Corporation at an average price of Rs 26.10. foods segment. The capacity is to make over
to become a complete energy solutions The seller was ARM Infra And Utilities. 60,000 meals per day on a two-shift basis in
provider. Consolidated gross sales rose 19.5% Enam Securities bought 11,15,000 shares addition to manufacturing prepared frozen
to Rs 3924.85 crore but OP declined 38% to of Tube Investments Of India at Rs 222 and formed products. Gross sales rose to 11.32%
Rs 110.19, with the OPM getting squeezed to 11,73,374 shares at Rs 222. Kutir Properties to Rs 74.01 crore and OP a marginal 3.7% to
2.83% from 5.26% end March 2017 quarter. bought five lakh shares at Rs 222. Ambadi Rs 16.58 crore, with OPM declining to
Consequently APat was down 18.3% to Rs Investments sold 16,15,000 shares, or 0.88% 22.40% end March 2018 quarter from
64.36 crore. stake, at Rs 222 and 16,15,000 shares at Rs 24.43% end March 2017 quarter. APat was
Societe Generale sold 3.68 lakh shares, 222. Enam Securities acquired 11.7 lakh shares, down 6% to Rs 7.76 crore. 
or 1.2% equity, of IEX Exchange at Rs 1586 or 0.64% equity, at Rs 222 each.
each. Icra IIFL Management Services bought Jupiter India acquired 30,000 shares, The bulk deal transactions took place on the NSE
3.30 lakh shares, or 3.3% equity at Rs 3291 or 1.17% equity, of Tasty Bite Eatables at and the BSE in the fortnight ended 6 July 2018. The
deals could be in different tranches on the same day
each. Punjab National Bank sold 3.30 lakh Rs 7485 each. or spread over several days. The average price per
shares, or 3.3% equity, at Rs 3291. The manufacturer and marketer of a range share is mentioned.

Jul 16 – 29, 2018 CAPITAL MARKET 25

MarketWatch

Different strokes
The headline index continued to gain even as mid and small caps shed value and turned volatile
10900 8800 20500
Nifty 50
10700 Nifty Small cap 200 day SMA
8300 19750

10500 Nifty Midcap 200 D SMA

7800 19000
10300
A Nifty Small 100
ys SM
200-da
Nify 50 7300 18250
10100
Nifty Midcap 100

9900 l l l l l l 6800 l l l l l l 17500 l l l l l l

M’18 A M J J M’18 A M J J M’18 A M J J

Nifty-200-day simple moving average. Nifty-Small cap 200-day simple moving average. Nifty-Mid cap 200-day simple moving average.

Market Report ing oil bill due to the twin whammy of higher
oil prices and a weak rupee on the current

Checks and balances account deficit.

The rupee is down a little over 8% so far
in the calendar year (CY) 2018, making it the
Concerns of a weak rupee balanced by optimism from higher worst performer in Asia, and has depreciated
output by the manufacturing and services sectors by 6.6% in the calendar year (CY) 2017. In
the first six months of CY 2018, overseas
The brightening of the market’s mood on the world, with the rupee closing at its low- investors pulled out nearly Rs 48000 crore
reports of good monsoon and higher manu- est-ever level of 69.0925 per US dollar on from the Indian capital markets, making it
factured and services output was checked 05 July 2018 on continuing pullout by for- the steepest outflow in a decade, following
by a weakening rupee and rising inflation. eign portfolio and institutional investors. high crude oil prices and trade war worries.
Fears of further depreciation of the Indian The exit stemmed from the desire to take In a major blow to expectation that in-
currency were heightened as US and China advantage of a booming US economy and on creasing reliance on domestic production
slapped tariffs on selective imports from concerns of the impact of India’s burgeon- might lead to decline in oil prices, US crude
each other. The increase in minimum sup- stockpiles dropped by almost 10 million
port prices for kharif crop evoked mixed Domestic flavour barrels last week, a larger-than-expected fall,
feelings as the measure had the potency to while supply disruptions in Canada and
How the indices moved
boost rural income as well prices of farm Libya remained in focus.
produce. The precarious state of public sec- VARI (%) Another concern is effect of the policies
tor banks was another area of concern. The NAME 6-JULY-18 PE 15 DAYS YEARLY to address farmers’ distress on fiscal deficit.
pulls and pressures kept large caps range- After two consecutive dry seasons, India
BSE FMCG Sector 11363.56 49.4 2.93 5.95
bound, while mid caps and small caps con- saw two consecutive normal monsoon peri-
BSE IT Sector 13943.23 19.14 2.28 41.44
tinued to shed value. ods. Southwest rains in the current year,
BSE Tech 7151.13 22.61 1.83 28.68
The S&P BSE Sensex has gained nearly too, are forecast to be normal. Instead of
BSE Sensex 35657.86 22.71 0.64 13.67
5% in the calendar year so far, with its re- providing relief, the sharp rise in crop has
BSE Auto 24702.02 23.26 0.6 3.53
turns doubling over the past year. In con- pummelled prices, worsening the woes of
BSE 200 4629.45 23.63 -0.17 9.7
trast, the S&P BSE Mid-cap index is down the agriculture sector. Many states have
S&P BSE Finance 5910.59 37.19 -0.41 10.29
2.3% in the past year and the S&P Small- waived off farmers’ loan.
BSE 500 14587.74 24.59 -0.45 8.77
cap index dipping 1.52%. Their decline has To keep the promise made in the Union
BSE Healthcare 14045.95 33.12 -0.48 -1.35
been particularly sharp in CY 2018, with Budget for 2018-19 to buy agriculture out-
BANKEX 29381.68 48.24 -0.73 10.61
the mid-cap index shedding 13% and the put at 150% of the cost of production, the
S&P BSE Telecom 1147.35 -19.4 -0.83 -14.17
small-cap index losing 17.42% minimum support prices (MSPs) for all kharif
S&P BSE BasicMat 2943.67 14.73 -1.2 -1.7
End of last fortnight, the Trump admin- crops has been raised. The MSP of niger seed
BSE Cap Goods 17524.62 28.3 -1.39 1.52
istration imposed tariffs on US$34 billion has been hiked Rs1827 per quintal, moong
BSE Mid-Cap 15391.62 32.46 -2.39 2.97
worth of Chinese products. The fight esca- Rs 1400 per quintal, sunflower seed Rs 1288
BSE Metal 12620.3 9.16 -2.65 7.2
lated with China in turn slapping import per quintal and cotton by Rs 130 per quintal.
BSE Cons Durable 19584.99 35.92 -2.68 21.72
levies on soya bean and automobiles among Amongst cereals and nutri cereals, MSP
BSE Small-Cap 16059.94 108.36 -2.83 1.71
others. The US president has hinted that of paddy (common) has been raised Rs 200
S&P BSE Indus. 3283.16 29.86 -3.14 -4.66
Chinese goods worth US$ 500 billion could per quintal, jowar (hybrid) Rs 730 per quin-
S&P BSE Utiliti. 1853.38 15.6 -3.87 -5.52
be under tariffs. The moves and counter- tal and ragi Rs 997 per quintal. The highest
BSE Power 1899.78 15.53 -4.45 -14.74
moves have the potential to hurt companies percentage increase in MSP over the previ-
BSE Realty Index 2052.06 11.28 -4.89 -3.43
and consumers in both the largest and the ous year is for ragi (52.47%), followed by
BSE Oil&Gas 13694.66 10.36 -5.2 1.9
second-largest economies in the world. The jowar hybrid (42.94%). Among pulses, apart
S&P BSE Energy 3962.57 13.68 -5.37 14.26
side-effects were felt on currencies around from moong, MSP of arhar (tur) has been

26 Jul 16 – 29, 2018 CAPITAL MARKET

MarketWatch
hiked Rs 225 per quintal, yielding a return
over cost of 65.36% and urad Rs 200 per
quintal, with a return over cost of 62.89% to
maintain inter-crop-price parity. Similarly,
MSP of bajra has been raised Rs 525 per
quintal, yielding a return of 96.97% over cost.
Increased MSPs for pulses are to signal
farmers to increase acreage. Further, en-
hanced MSP is expected to boost produc-
tion of oilseeds and encourage investment in
its productivity and help reduce India's im-
port bill. Increase in MSPs of nutri-cereals
will improve nutritional security and allow
farmers to get higher prices.
The fall-out of the glut in farm produce
last year is making its presence felt in the cur-
rent year, with the dip in total area sown this
year. End first week of July 2018, the acreage
was down 14.7% to 333.76 lakh hectares (ha)
compared with 388.89 lakh hectares a year
ago, year. The area sown under rice dropped
15%, pulses 19.36%, coarse cereals 13%, oil
seeds 13.40% and c otton 24%. However, area
under sugarcane rose 1.61%.
Evan as the moves to boost farmers’ in-
come plays out, output of eight core indus-
tries comprising 40.27% of the weight of
items included in the Index of Industrial Pro-
duction (IIP) rose 3.6% in May 2018, show-
ing moderation in growth from the 4.6% rise
in April 2018. The cumulative growth was
4.1% in April to May 2018. Coal production
(weight: 10.33%) increased 12.1%. Its cu-
mulative index increased 14% in April to May
2018. Crude oil production (weight: 8.98%)
declined 2.9% and the cumulative index de-
clined 1.9%. Natural gas production (weight:
6.88%) declined by 1.4% and the cumulative
index increased 2%. Petroleum refinery pro-
duction (weight: 28.04%) increased 4.9% and
the cumulative index increased 3.9%. Fertil-
izers production (weight: 2.63%) 8.4% and
the cumulative index increased 6.6%. Steel
production (weight: 17.92%) increased 0.5%
and the cumulative index increased by 2.1%.
Cement production (weight: 5.37%) increased
5.2% and the cumulative index increased
10.7%. Electricity generation (weight:
19.85%) increased 3.5% the cumulative in-
dex increased 2.8%.
Confirming the economy’s recovery, the
Nikkei Purchase Managers’ Index (PMI) data
in June 2018 signalled the best improvement
in the overall health of the economy since
October 2016. The seasonally adjusted out-
put index of Nikkei India Composite Pur-
chasing Managers’ Index rose from 50.4 in
May to 53.3 in June, supported by output
growth in both the manufacturing and ser-
Jul 16 – 29, 2018 CAPITAL MARKET
New overseas orders rose for the eighth con-
Commodity flow secutive month. The rate of expansion accel-
Monthly variation : 2.3% erated to the fastest since February.
Yearly variation : 61.4%
Closing price (6 July 2018) : US$ 77.11
Firms increased their purchasing activity
and staffing levels. Although modest, the pace
82
of expansion quickened to the fastest since
77
January. Post-production inventories held by
manufacturing companies rose further in June,
72 but only fractionally. Although modest, job
Brent crude oil in US$ per barrel creation accelerated to the strongest in 2018
67
so far. Jobs growth was evident across con-
sumption, intermediate and investment goods.
62 l
l l l l l
M’18 A M J J Input-cost inflation, however, was the
(+) Appreciation. (-) Depreciation sharpest since July 2014, stretching the pe-
riod of inflation to 33 months. Moreover,
Exchange equation the latest rise was the sharpest since July
2014. Steel and fuel were among the key
Monthly variation : 2.7%
Yearly variation : 6.3%
items that increased in price. Subsequently,
Closing price of US$ (6 July 2018) : Rs 68.88 firms raised their output charges at the fast-
64.6
est pace since February but at the slowest
pace in over a year.
65.6
Despite strengthening demand condi-
66.6 tions, business sentiment was at the weak-
INR/USD
67.6
est level seen since last October. Manufac-
turing companies reported business confi-
68.6
dence towards the 12-month outlook at the
69.6 l l l l l l
weakest level since October 2017. Optimis-
M’18 A M J J
tic projections for output reflected expecta-
(+) Appreciation. (-) Depreciation tions that demand conditions will improve
over the next 12 months.
Following a marginal contraction in
Interesting insight
May, the Indian service sector returned to
Monthly ago : 7.92%
Yearly ago : 6.54% growth in June. The seasonally adjusted
Closing price (6 July 2018) : 7.87% Nikkei India Services Business Activity In-
8.1 dex rose from 49.6 in May to 52.6 in June,
thereby stretching the period of expansion
7.9
to 25 months.
7.7 The latest reading was the strongest seen
7.5
since October 2016 and the fastest since last
India 10-Year Bond June, indicative of a solid rate of expansion.
7.3
The rate of expansion in activity was the
7.1 l l l l l l
sharpest in a year and was supported by the
M’18 A M J J
strongest rise in new business since last June.
(+) Appreciation. (-) Depreciation Reflecting improved demand condi-
tions, jobs growth picked up from May's
vice sectors. The catalysts were primarily five-month low. Information and commu-
manufacturing, followed by services. The nications registered the sharpest growth in
downside was increase in input costs at the staffing levels. Manufacturers also raised
strongest rate since July 2014. their staffing levels in June. Although mod-
India’s manufacturing conditions ex- est, job creation quickened to the strongest
tended their 11-month expansion spree, im- since last December.
proving at the strongest pace since Decem- The rate of accumulation picked-up
ber 2017, supported by the sharpest gains in from May's 11-month low, but was mod-
output and new orders in 2018 so far. The est overall. Stronger demand and delayed
Nikkei India Manufacturing PMI rose to 53.1 payments were the key factors contribut-
in June from 51.2 in May. Output growth ing to higher backlogs.
was reported across all market groups. New Service providers faced higher cost bur-
business placed at manufacturers in June rose dens at the end of the quarter. Upward infla-
to the sharpest degree in CY 2018 so far. tionary pressures emanated from higher fuel
27
MarketWatch

Taking off scooter sales. However, motorcycle sales in-

creased 15% in May 2018, with Hero
BSE 500 companies hitting life-time highs in the fortnight ended 6 July 2018.
Motocorp and Bajaj Auto expanding their re-
STAKE TTM lated market share. 2W sales are usually weak
COMPANY ALL-TIME 52-WEEK PROMO. FIIs MF NPM P/E P/BV during the monsoon season (May-July). Thus,
2W sales volume also declined 4% over April.
HIGH-DATE HIGH (Rs) LOW (Rs) (%) (%) (%) (%)
Despite the surge in manufacturing and
Bajaj Finserv 25/06/2018 6290 4093.6 58.35 7.82 3.78 8.96 35.15 4.66 services, normal power deficit was lower at
Abbott India 26/06/2018 7828 4035 74.99 2.82 5.32 12.13 37.89 8.99 0.6% and the peak power deficit at 1.4% in
Astral Poly 26/06/2018 1059.85 606.1 58.5 19.89 6.4 8.34 67.5 11.66 the first two month of FY2019 compared with
Bajaj Fin. 26/06/2018 2419.55 1372 55.14 19.46 7.78 19.92 50.61 8.18
0.7% and 2% in the same period in FY 2018.
Though pace of new generation capacity addi-
Hexaware Tech. 27/06/2018 475.6 235 71.19 14.59 6.36 12.9 25.7 6.66
tion slowed down, a significant rise in power
IndusInd Bank 27/06/2018 1995 1506.55 14.97 46.45 9.34 20.87 32.69 5.01 deficit is not expected as the overall plant load
Nestle India 27/06/2018 10190 6501 62.76 11.94 2.4 13.14 71.45 28.04 factor (PLF) of thermal power generation ca-
Page Industries 27/06/2018 28759 15089.2 49.01 36.07 5.16 13.6 91.23 37.36 pacity continues to be low. Thus, according to
Dabur India 28/06/2018 397.25 295.9 68.07 17.22 4.32 17.51 47.74 11.45 India Rating, even if the power demand for FY
MphasiS 28/06/2018 1150 560 60.38 22.79 6.68 12.79 25.29 3.91 2019 sustains the 6% growth of FY 2018,
there is not likely to be any major difficulty in
Indian Energy Ex 29/06/2018 1679.95 1405 0 7.32 5.57 57.14 37.48 17.38
meeting the demand given renewable energy
Jyothy Lab. 29/06/2018 249 162.5 66.85 16.42 5.24 10.35 53.55 7.35
supplements the conventional energy in a sig-
Bata India 02/07/2018 864.95 551.2 52.96 6.19 17.5 8.5 48.14 7.23 nificant way over and above increase in PLF
Infosys 03/07/2018 1358 861.5 12.9 35.24 10.6 22.73 17.72 4.32 of thermal power plants.
Godrej Consumer 04/07/2018 1270 860.65 63.25 28.01 0.69 16.73 57.05 13.59 The gradual recovery in manufacturing
Jubilant Food. 04/07/2018 1438.7 519.75 44.94 37.84 8.12 6.93 91.98 18.65 activity in the country with headwinds of
demonetization, goods and services tax, Real
Tata Elxsi 04/07/2018 1374.95 791.48 44.57 9.26 4.65 17.32 35.2 11.49
Estate Regulation and Development Act and
Britannia Inds. 05/07/2018 6369.95 3661 50.7 17.07 5.97 10.21 75.42 22.23
other emission and product specification
Graphite India 05/07/2018 1003.95 169.1 65.21 4.58 5.34 30.88 17.79 6.72 changes behind as well as increased penetra-
HEG 05/07/2018 3840.55 386 61.04 3.97 2.2 39.32 13.05 7.51 tion supported by schemes such as
Asian Paints 06/07/2018 1335.6 1082 52.79 15.08 2.87 12.47 63.7 15.09 Saubhaghya and power-for-all are expected
Hind. Unilever 06/07/2018 1696.35 1087 67.19 12.56 1.64 15.43 69.5 49.91 to sustain the growth.
TCS 06/07/2018 1920.3 1162.5 71.92 16.95 1.81 21.02 28.55 8.6
Reflecting the increased demand for goods
and services and rising input costs, the all-
V-Mart Retail 06/07/2018 2900 1018 54.05 32.24 2.32 6.36 66.83 14.81
India consumer price index (CPI) for indus-
Zydus Wellness 06/07/2018 1485 845 72.54 5.99 4.19 26.24 43.07 8.34 trial workers (IW) increased one point and
Results are on consolidated priority basis for TTM ended 31 March 2018 and companies marked with * TTM ended 31 was pegged at 289 in May 2018. It increased
December 2017. Data as on 6 July 2018.
0.35% between April 2018 and May 2018
costs. They were unable to fully pass on BS-III, which led to significant pre-buying in compared with the rise of 0.36% between
higher input costs to price-sensitive con- March 2017 and inadequate supply of BS- the corresponding months of previous year.
sumers. New orders across the service sec- IV-compliant vehicles. As a result, M&HCV The maximum upward pressure to the change
tor rose further in June. sales volume grew 80%in May 2018 (115% in the index came from the food group, con-
Despite an improvement in demand con- year to date till May 2018). tributing 0.68 percentage points to the total
ditions, business sentiment across the ser- The industry’s sales volume growth change. The year-on-year inflation based on
vice sector dipped to the lowest since last continued to be supported by an uptick in CPI-IW stood at 3.96% for May 2018 com-
October. While optimism was relatively the industrial activity and infrastructure de- pared with 3.97% in April 2018 and 1.09%
weak, firms still anticipate activity to rise velopment. in May 2017. Similarly, food inflation rose
in the year ahead. LCV sales volume registered double-digit 1.66% as against 1.33% increase for April
Leading the manufacturing charge was the growth (up 26%) in May 2017, driven by 2018 and 1.63% decrease in May 2017.
automobile sector. Sales volumes increased demand from consumption-driven and e-com- With elections less than a year away,
12% in May 2018 over May 2017, primarily merce sectors. The PV segment’s sales vol- spend of the Central and state governments,
led by strong growth in the mid and heavy umes spurted 20%. Car sales increased 20%, the mode of financing and its impact on li-
commercial vehicles (M&HCV) volumes. CV surpassing utility vehicle (UV) sales growth quidity in the system will be watched by the
sales grew 43% (57% in CY 2018 till end of 18% for the first time since May 2017. Car market. Government security (g-sec) yields
May 2018 over a year ago). However, the sales picked up due to new product launches. generally showed a hardening trend in the
growth rate moderated over April. CV sales Two-wheeler (2W) sales volume growth quarter ended March 2018.
volume declined in April-May 2018 due to slowed to single digit for the first time since The market is worried that interest rates
the transition to BS-IV emission norms from November 2017, primarily due to a decline in will knock off the repayment schedule of

28 Jul 16 – 29, 2018 CAPITAL MARKET

MarketWatch
corporate borrowers and will adversely af- cies. Total external debt end March 2018 in-
fect the treasury income of banks. As per the Double-edged sword creased 3.3% from end December 2017. The
latest financial stability report (FSR) of the There is concern that higher support external debt-to-GDP ratio stood at 20.5%
RBI, the stress in the banking sector contin- price for farm output and the increasing at end-March 2018, higher than its level of
ues as the gross non-performing advances oil import bill will lead to slippage of 20% at end-March 2017.
(GNPA) ratio has risen further. Profitability fiscal and current account deficit US dollar-denominated debt continued to
of scheduled commercial banks (SCBs) de- 17.0 be the largest component of India's external
clined, partly reflecting increased provision- debt with a share of 49.5%, followed by the
15.5
ing. While this has added pressure on SCBs’ Indian rupee (35.8%), SDR (5.5%), Japanese
regulatory capital ratios, the provision cov- 14.0
yen (4.8%) and euro (3.4%).
erage ratio has increased. Credit growth of The borrower-wise classification
SCBs picked up in FY 2018, notwithstand- 12.5 showed the outstanding debt of both gov-
India VIX
ing sluggish deposit growth. ernment and non-government sectors in-
SCBs’ GNPA ratio rose to 11.6% in 11.0 l
M’18
l
A
l
M
l
J J
l l creased. Debt service payments declined to
March 2018 from 10.2% in September 2017. Rise or fall in India VIX depicts increase or decline in 7.5% of current receipts compared with 8.3%
However, their net NPA (NNPA) ratio reg- volatility in the near term at end-March 2017.
istered only a smaller increase during the China’s official non-manufacturing PMI,
period due to increase in provisioning. to US$ 529.7 billion end March 2018 over its a measure of activity outside factory gates,
The GNPA ratio was up to 22.8% from level end-March 2017. An increase in com- rose to 54.9 in May from 54.8 in April, the
19.4%, whereas the stressed advances ratio mercial borrowings, short-term debt and non- National Bureau of Statistics said. China's
increased to 24.8% from 23.9%. The resident Indian (NRI) deposits primarily led central bank will cut the amount of cash some
stressed advances ratio of sub-sectors such to the rise. The increase was also partly due lenders must hold as reserves, unlocking
as gems and jewellery, infrastructure, paper to valuation loss resulting from the deprecia- about 700 billion yuan (US$108 billion) of
and paper products, cement and cement tion of the US dollar against major curren- liquidity, as it seeks to control leverage
products and engineering increased in March and support smaller companies. The re-
2018 from September 2017. The asset qual- Inflows and outflows quired reserve ratio for some banks will
ity of food processing and textiles sub-sec- drop by 0.5 percentage point, effective 5
Net investment in equities and debt by foreign
tors improved. The provision coverage ra- July 2018, the People's Bank of China said,
portfolio investors and mutual funds
tio increased across all bank groups in a day before the US and China imposed
March 2018 from its level in September DATE FPIs (Rs cr) MFs (Rs cr) tariffs on each other.
2017. Among the bank groups, FBs had the EQUITY DEBT EQUITY DEBT The Bank of Japan (BoJ) held to its
highest provision coverage ratio (88.7%), 22-Jun-18 1240.85 -224.48 1164.63 3219.12 easing policy as widely expected. Its policy
followed by private banks (51%) and pub- 25-Jun-18 319.73 -675.09 -334.99 2623.1 makers voted 8-1 to keep the bank's short-
lic sector banks (47.1%). 26-Jun-18 -413.62 -549.21 -5.59 1777.86 term interest rate at minus 0.1%. The BoJ
Macro-stress tests indicate that under 27-Jun-18 59.19 695.49 1.61 604.92 also pledged to maintain its inflation target
the baseline scenario of current macroeco- 28-Jun-18 -677.74 -995.96 255.16 1312.45 at 2%. The bank said it is too early for the
nomic outlook, SCBs’ GNPA ratio may rise 29-Jun-18 1738.40 37.84 2352.66 1242.18 BoJ to talk about winding down stimulus.
from 11.6% in March 2018 to 12.2% by 02-Jul-18 158.29 -13.89 177.71 5202.18 The country logged its first trade deficit in
March 2019. The system-level capital to 3-Jul-18 -987.24 -186.58 115.46 6257.98 three months in May on a surge in imports
risk-weighted assets ratio (CRAR) may come 4-Jul-18 1074.39 269.02 454.55 8499.70 of aircraft and aircraft engines from the United
down to 12.8% from 13.5% and 11 PSBs 5-Jul-18 250.86 785.86 -243.62 2238.68 States, data from the finance ministry
placed under the prompt corrective action 6-Jul-18 -1177.48 -1411.78 876.14 3627.33 showed. It posted a trade deficit of 578.3
framework might experience a worsening of Jun-18 -4831.23 -10968.62 9231.28 39845.22
billion Yen in May.
their GNPA ratio to 22.3% from 21% in May-18 -10060.03 -19654.15 13618.82 -14085.55
Euro zone finance ministers agreed to
Apr-18 -5552.21 -10035.77 11293.46 20164.82
March 2018, with six PCA PSBs likely ex- ease Greece's debt burden when the
Mar-18 11654.29 -9043.91 9255.51 37977.51
periencing capital shortfall relative to the re- country's bailout ends in August. Greece
Feb-18 -11422.9 -253.85 16165.78 33648.67
quired minimum CRAR of 9%. now has another 10 years to pay back al-
Jan-18 13781.46 8522.92 6212.56 20792.68
Meanwhile, the efforts to strengthen most euro 100 billion ($116 billion) of loans,
Dec-17 -5882.68 2350.23 8333.30 18997.55
the banks continue. Recapitalization of re- Nov-17 19727.65 530.54 12080.10 41978.37 about half the bailout total since 2010, and
gional rural banks (RRBs) has been ex- Oct-17 3055.44 16063.65 9990.50 29088.49 to lend another Euro 15 billion, in part to
tended up to 2019-20 to enable them to Sep-17 -11392.30 1348.89 17456.84 31855.24 help build a cash buffer.
maintain the minimum prescribed capital Aug-17 -12769.70 15446.51 17941.11 36466.82 The European Central Bank (ECB)
to risk-weighted asset ratio (CRAR) of Jul-17 5160.71 18867.15 11799.85 40387.50 said it would phase out some of its easy-
9%. There were 56 RRBs functioning end Jun-17 3616.82 25685.11 9106.11 12617.91 money policies on the back of an improv-
March 2017, providing total credit of Rs CY 2017 51253.47 148806.53 118774.00 383709.00 ing economic picture in Europe. EU lead-
228599 crore. CY 2016 20566.18 -43645.30 46849.50 330205.60 ers agreed to extend their economic sanc-
The run on the rupee has had an adverse CY: Calendar year. FPIs: foreign portfolio investors. tions against Russia for annexing Crimea
on India's external debt. It increased 12.4%, MFs: Mutual funds. from Kiev and backing rebels fighting gov-

Jul 16 – 29, 2018 CAPITAL MARKET 29

MarketWatch

In the limelight
BSE Large caps BSE Mid-caps BSE Small-caps
VARI (%) VARI (%) VARI (%)
NAME 06-JUL-18 PE 15 DAYS YEARLY NAME 06-JUL-18 PE 15 DAYS YEARLY NAME 06-JUL-18 PE 15 DAYS YEARLY
Gainers Gainers Gainers
Graphite India 939.8 17.79 20.96 421.1 Electrosteel St. 24.55 0 69.9 412.53 Alok Inds. 5.42 0 68.85 87.54
HEG 3584.15 13.05 13.05 746.22 Atlas Jewellery 140.35 0 33.99 107.46 Apple Finance 2.39 59.18 60.4 -32.29
GRUH Finance 344.8 69.54 12.08 47.89 Kiri Indus. 594.95 5.21 24.35 108.94 Danube Indust. 2.13 0 60.15 -91.48
Motil.Oswal.Fin. 882.4 23.71 9.23 -21.51 Arshiya 63.4 0 23.83 -5.93 BCPL Internat. 1.42 0 57.78 -91.55
UltraTech Cem. 3951.2 45.67 9.18 -3.58 Ramky Infra 192.65 33.88 17.68 96.38 GTN Industries 16.07 0 50.47 -18.01
Reliance Nip.Lif 236.05 27.67 8.53 Indian Metals 372.6 5.71 16.62 -32.13 Kartik Invest. 560.15 0 49.25
Balkrishna Inds 1200.75 33.29 8.43 39.29 Garware-Wall Rop 1154.4 24.02 16.01 32.67 Kuber Udyog 9.5 19.88 49.14 -49.74
ACC 1373.45 26.76 8.2 -14.74 Poly Medicure 220 27.99 13.96 1.76 Virgo Global 0.58 78.21 48.72
Page Industries 28390.55 91.23 7.67 63.27 Confidence Petro 51.9 50.09 12.22 194.05 Vanta Bioscien. 69.8 1464.47 46.95
Bharti Infra. 298.75 2 2 7.29 -28.01 BLS Internat. 170.85 18.13 12.14 -16.13 Shree Rama News. 31.65 0 43.54 26.1
Losers Losers Losers
Tata Motors 271.15 10.94 -11.55 -37.97 Mirza Internatio 97.1 14.9 -16.18 Nouritrans Exim 3.99 22.5 -37.66
KIOCL 181.65 141.46 -11.82 Jindal Stain. 61.3 8.58 -16.77 -39.97 Gradiente Info. 0.59 6.04 -37.89 -56.3
Adani Enterp. 110.7 16.83 -14.58 -6.59 Johnson Con.Hit 2092.15 56.8 -17.42 -17.66 Kaycee Inds. 2521.1 23.64 -38.57 -12.4
TV18 Broadcast 47.85 1044.99 -14.71 28.11 SREI Infra. Fin. 59.85 7.72 -18.29 5.28 Arihant Super. 68.25 22.36 -39.49 -66.11
ICICI Sec 305.7 17.66 -15 GTPL Hathway 89.95 17.5 -25.97 -47.64 Petron Engg 24.2 0 -39.58 -83.5
HPCL 267.9 5.66 -15.01 -21.14 8K Miles 377.55 7.28 -27.42 -47.64 BIGBLOC Const. 85.75 30.37 -40.41 4.45
IDBI Bank 48.2 0 -16.75 -15.95 Den Networks 61.65 0 -31.27 -31.57 Pincon Spirit 7.29 0.79 -41.91 -89.72
Dilip Buildcon 689.85 16.96 -17.3 51.68 KRBL 309.1 16.75 -32.08 -23.98 JBF Inds. 39.1 0 -42.84 -85.75
NBCC 67.95 32.87 -17.98 -34 Kushal 56.5 12.22 -33.45 -21.4 Waa Solar 63.8 8.67 -55.85
Shriram Trans. 1110.55 17.02 -25.2 0.24 Hathway Cable 18.3 0 -38.38 -64.68 Fedders Electric 23.1 3.84 -56.9 -68.61
Data is on consolidated basis for TTM based on Data is on consolidated basis for TTM based on Data is on consolidated basis for TTM based on
latest results. latest results. latest results. NA: Not available.

ernment troops in east Ukraine, an EU offi- first quarter was trimmed to 2% from 2.2%, prior move upward in rates, according to
cial said. The decision, which will be for- raising doubts if the US Federal Reserve will Morgan Stanley. The peak of 3.12% in CY
mally confirmed in the coming days, will stick to its timetable of two more rate hikes 2018 was hit mid May. The 10-year yield
prolong EU's curbs on doing business with in the remaining portion of CY 2018. The has fallen sharply since then, last seen be-
Russian banking, financial and energy sec- benchmark 10-year Treasury note yield has low 2.9% as a renewed wave of trade ten-
tors for six months until the end of January. peaked for 2018 as trade worries, weaker sions gripped markets and threatened to stall
The growth in the US economy in the emerging markets and a strong dollar cap the global economic growth. Yields fall as prices
rise. Persistent trade disagreements between
Global equity markets President Trump’s administration, the Eu-
Returns in local currencies Returns in US dollars ropean Union and other economic allies have
hampered market performance so far this
COUNTRY INDEX FORT 1 MNTH 3 MNTHS 1 YEAR FORT 1 MNTH 3 MNTHS 1 YEAR year and kept pressure on borrowing costs.
Australia ASX 200 0.8 3.8 8.9 10.0 0.7 1.3 5.1 7.4
Brazil Bovespa 6.2 2.8 -12.1 20.4 2.5 -1.3 -25.7 1.3 Outlook
China Shanghai Composite -4.9 -10.4 -13.3 -14.6 -6.9 -13.6 -18.0 -12.6 The current account deficit is projected at
France CAC 40 -0.2 -1.4 4.0 4.5 -0.2 -1.8 0.2 1.8 2.2% of GDP (30 basis points higher than
India BSE Sensex -0.1 0.6 8.2 13.7 -1.4 -1.2 2.3 6.8 the previous year). The rupee is forecast to
India Nifty -0.5 0.0 6.5 11.5 -1.8 -1.8 0.8 4.7 go to the upper bound of 70 by Q3 of FY
Japan Nikkei 225 -3.2 -4.0 1.6 9.3 -3.7 -4.9 -2.4 12.9 2019. An improvement can be foreseen in
New Zealand NZX 50 Index 0.9 1.6 9.2 19.2 0.0 -1.3 3.1 11.9 CY 2019. Sentiments could improve if the
South Korea KOSPI -3.6 -7.3 -7.1 -4.5 -3.7 -10.6 -11.6 -1.2 earnings season that has begun brings in cheer.
United Kingdom FTSE 100 -0.8 -0.8 8.0 3.6 -0.8 -1.9 2.1 6.7 A weak rupee is likely to boost the IT sec-
Germany DAX -0.7 -2.1 3.3 0.9 0.3 -2.4 -1.5 3.9
tor the most among the export-oriented sec-
Russia MICEX 4.3 3.4 3.3 22.6 4.2 2.6 -6.1 17.9
tors. Consumptions stocks in the automo-
UAE ADX General 1.5 -1.3 0.4 4.7 1.5 -1.3 0.4 4.7
bile sector are set to benefit from the hike in
Mexico IPC 4.8 6.6 6.2 -2.2 10.5 14.6 1.2 -6.9
MSP for kharif crop. Consumer price infla-
Singapore Straits Times -2.9 -7.1 -6.9 -1.2 -2.8 -8.7 -10.2 0.6
USA Dow Jones -0.5 -3.4 1.5 14.2 -0.5 -3.4 1.5 14.2
tion, industrial production and trade balance
USA S&P 500 0.2 -0.7 4.5 13.8 0.2 -0.7 4.5 13.8 data will influence movements. Crude and cur-
As on 06 July 2018. Returns in percentage. rency moves as the US and China trade war
pans out will also be closely watched. 

30 Jul 16 – 29, 2018 CAPITAL MARKET