Vol.

: 257
24th August,2015

Index

MarketView
1 Market View:

The Panic Grips the World Market

CompanyUpdate
2
The sentiment in equity, bond and currency market is badly affected due to the devaluation of Chinese

currency and the reasons for the same. The devaluation of Chinese currency by about 5% has created
Aroundthe
the currency war situation in the world market. To repair the falling economy, the central bank of any
Economy

3 country and the government are resorting to the tools which can create ripples in the world market. Dr.
Rajan has warned the central banks of the world before one year or so that they must restrict the

temptation to resort to the techniques which can have the cascading effects over the world. The econKnowledgeCorner 3 omy of China is having great influence in the economy of the world and they must act with responsibility

while taking drastic steps to revive their economy. The Chinese devaluation has caused fall up to 10% to
MutualFund
4 30% in the value of currencies of many emerging countries like Brazil, South Africa and South East
Asian countries. The US Dollar, Euro and Pound have gained substantially in last week putting the US

Fed to rethink the interest rate hike in September. The hot money invested in emerging countries includCommodityCorner5 ing India is being withdrawn on back of falling value in currency.

ForexCorner
6 On Friday, the Dow Jones has fallen by more than 500 points. Why this is happening? The facts and
figures announced in last one month or so in China are really of concern. The Chinese economy seems

to be facing recession. The concern of this recessionary trend in other economies is increasing day by
ReportCard
7 day. The falling price of commodities and crude oil are an evidence of this situation. As India is the
biggest importer of oil & commodities, it will be most beneficial for the country like India. But if the world

PositionalCallStatus8 economy shrinks, India cannot get away and that is the reason why the Indian Rupee depreciates only
by 4% till to date but the falling currencies and nervous sentiment has triggered selling spree in the In
dian market by FIIs as they stand to lose in the environment of falling Indian Rupee. Under this circum
stances, the short term scenario is volatile and unpredictable with negative bias. But for long term
investors, this is a golden opportunity to accumulate the stocks which is in growth trajectory and can
Editor&Contributor
take the advantage of falling currency. The Pharma and Tech sector are the real beneficiaries in the curMargiShah
rent scenario. But those investors, who are leveraged and having short term view are the ones to take

the heat of the situation. So reduce leverage and have long term view in the current economic scenario
of the world and India.

SpecialContributors
Technically, any fall below 7940 may take the market to 7740. Any rise above 8350 / 8530 may bring
AsheshTrivedi
back some confidence in the market.
VimulSolanki

Kamal Jhaveri

MD- Jhaveri Securities

Forsuggestions,feedback
andqueries
jstreet@jhaveritrade.com

-1-

Vol.: 257
24th August,2015

Company Update : Ahluwalia Contracts (India) Ltd

Financial Basics

Company Basics
BSE Code
NSE Symbol
EQUITY (` in Cr.)
MKT.CAP (` in Cr.)

532811

FV (`)
EPS (`)

2.00
9.56

AHLUCONT

P/E (x)

24.91

P/BV (x)
BETA
RONW (%)

4.74
1.6817
3.55

13.40
1594.97

Share Holding Pattern

Holder's Name
Foreign
Institutions
Promoters
Non Prom.
Public & Others
Government

% Holding
15.49
5.92
66.87
6.44
5.29
0.00

Valuation : AHLUCONT is currently trading at 17.76X FY16E EPS of `13.20 and 14.43x FY17E of `16.00, Valued the
stock at 22x FY17E with target price of ` 368.

Company overview
ACIL is an integrated construction company, offering turnkey solutions in engineering and designing to public and
private sectors. The company is primarily in the business of construction of wide range of structural building and
manufacture of Ready Mix Concrete. They are having business interests in varied segments including IT Parks,
Retail, Multi Storied Housing Complexes, Industrial Complexes, Luxury Hotels, Hospitals and Commonwealth
Games Village & Stadium. In the past five years, ACIL has executed more than 50 projects.
Investment Rational
Strong Order book
ACIL has a robust order book built on the strengths of its strategically focused direction, expertise and strong execution capabilities. The order book comprises of 65% orders from Government sector against 32% as on 31st
March, 2014. The company is also currently L1 in projects worth Rs3.5 bn which includes projects like
Indraprastha Institute of Information Technology (IIIT), Delhi of Rs2.6 bn Hospital building (HSCC) at Kolkata of
Rs800 mn.
Tie-up with Russian company
Ahluwalia contracts ltd. has entered into technology tied up with KUB STROY Russia to build structures using a
patented high speed pre-cast construction technology. The company expects huge opportunity in the institutional
and affordable housing segment and expects this technology to play a key role the mass housing projects.
Increasing urbanisation trend
Today, about 31% of Indias population lives in the urban areas. It is much lower than its emerging market peers49% in china, 54% in Indonesia, 78% in Mexico, and 87% in Brazil. However, Indian economy is in quest of a
rapid change in the pace of urbanisation that will dominate what it has witnessed in the past decade. Indian economy is slated to grow to 43% , housing a population of about 540 million. This will help the company to receive
more order inflows and thereby improving the margins of the company.
- 2-

Vol.: 257
24th August,2015

Around The World

Weekly Market Recap :

The Reserve Bank of India (RBI) on 19 August 2015 granted in-principle approval to a total of 11 applicants including RIL for setting
up payments banks.

Global credit rating agency Moody's Investors Service reportedly trimmed its forecast for India's economic expansion for the current
fiscal year to 7% from its previous forecast of 7.5% due to drier-than-usual weather conditions.

The Federal Reserve is inching closer to the first interest rate increase in nearly a decade, minutes of the central bankers' latest
meeting indicated on 19 August 2015.

In global news, Chinese manufacturing activity shrank for a sixth straight month in August. The Caixin/Markit flash purchasing managers' index dropped to 47.1 in August from July's final reading of 47.8.

Market Eye Week ahead :

The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month August
2015 series to September 2015 series.

World equity markets and emerging market currencies have recently witnessed selling pressure as investors fretted over slowdown in
China's economic growth. China's decision last week to devalue its yuan has intensified investor concerns that weakness in the
world's second-largest economy will crimp global growth, particularly among China's northern Asian competitors in the exports market.

KEY EVENTS/FACTORS TO WATCH

1. Mon-wed: Navkar Corporation IPO
2. Tue- Thu: Pennar engineering building systems India Ltd. IPO, Shree Pushkar Chemicals & fertilizers IPO

Knowledge Corner :
Reverse Takeover - RTO'

A type of merger used by private companies to become publicly traded without resorting to an initial public offering. Initially, the private
company buys enough shares to control a publicly traded company. The private company's shareholder then uses their shares in the
private company to exchange for shares in the public company. At this point, the private company has effectively become a publicly traded
one. Also known as a "reverse merger" or "reverse IPO"

RTOs are undertaken by private companies in order to become publicly traded without having to go through an initial public offering (IPO).
While this move heavily reduces the costs of migrating from a private to a public listing, a reverse takeover does not generate the capital
inflow characteristic of an IPO.

- 3-

Vol.: 204
Vol.: 257
18th August, 2014
24th August,2015

Mutual Fund Corner

Top 10 Sector Break-Ups
Fund (%)

Fund Name
Scheme Name

Franklin India Balanced Fund

AMC

Franklin Templeton Asset Management India

Private Ltd

Type

Equity-oriented

Category

Open-ended and Hybrid

Launch Date

December 1999

Fund Manager

Sachin Padwal-Desai & Anand Radhakrishnan

Net Assets
(` In crore )

Rs. 571.6 crore as on Jul 31, 2015

History

2012

2013

2014

2015

NAV (Rs)

54.84

58.48

86.00

92.27

Total Return (%)

24.21

6.64

47.05

7.30

+/- VR Balanced

1.67

0.26

21.10

6.40

Rank (Fund/Category)

20/29

14/32

16/59

17/71

52 Week High (Rs)

54.84

58.51

86.26

94.03

52 Week Low (Rs)

44.12

49.55

57.04

85.34

Net Assets (Rs.Cr)

209.15

202.27

307.10

2.34

2.73

2.90

Expense Ratio (%)

Fund Performance v/s S&P CNX Nifty

Financial

19.75

Automobile

9.33

Technology

7.65

Healthcare

7.31

Services

4.61

Diversified

3.93

Communication

3.02

Engineering

2.92

Energy

2.55

Chemicals

1.91

Risk Analysis
Volatility Measures
Standard Deviation

11.03

Sharpe Ratio

1.39

Beta

0.94
0.86

R-Squared
Alpha

7.50

Composition (%)
Equity

65.92

Debt

31.24

Cash

2.84

Fund Style
Investment Style
Growth

Blend

Value

Medium
Small

Fund
CNX Nifty
(Rebased to 10,000)
- 4-

Capitalization

Large

Source : - www.valueresearchonline.com

Vol.: 204
Vol.: 257
18th August, 2014
24th August,2015

Commodity Corner
BULLION
FUNDAMENTAL: Bullion prices rallied last week where gold gained by around 5.70% and silver gained by more than two percent supported by weakness in rupee and with investors seeking the safe haven appeal of the precious metal as the riskier equity assets continued to decline sharply
globally on mounting evidence that China is having a rough patch economically. The FOMC appears sharply divided on whether inflation is moving
close to a level it deems appropriate to start raising short- term rates. World stocks tumbled towards their worst week of the year, while the dollar index hit its lowest in two months after Chinese factory data added to doubts that the U.S. Federal Reserve will raise interest rates next month. Gold had
already rebounded last week from July's 5-1/2 year low, boosted by minutes of the Fed's last policy meeting, which dented expectations for an imminent rise in U.S. rates. Gold has come under heavy pressure this year from expectations that the Fed would raise rates for the first time in nearly a decade, lifting the opportunity cost of holding non-yielding bullion while boosting the dollar. Colombia slashed its gold holdings by two-thirds last month,
adjusting its reserves for the first time in years, as spot prices sank in a bullion rout, International Monetary Fund data showed. The South American
country slashed its holdings by 6.5 tonnes, leaving just 3.77 tonnes, the data showed. It was the first time in at least two years the country had changed
its reserves of bullion, according to sources. latest study report published by GFMS Thomson Reuters forecasts Indian gold demand to jump by 11% in
2015. The report states that the rupee price of gold will decline by 15% during the year, which will trigger fresh purchases of the yellow metal. The
yearly gold demand in India is likely to touch 936 tonnes in 2015, 11% higher when compared with the countrys gold demand of 842.7 tonnes
during the entire year 2014.
RECOMMENDATION : BUY GOLD @ 27100 SL 26600 TGT 27800-28200.BUY SILVER @ 35800 SL 34800 TGT 36600-37500.

BASE METALS
FUNDAMENTAL: Bullion prices rallied last week where gold gained by around 5.70% and silver gained by more than two percent supported by weakness in rupee and with investors seeking the safe haven appeal of the precious metal as the riskier equity assets continued to decline sharply globally
on mounting evidence that China is having a rough patch economically. The FOMC appears sharply divided on whether inflation is moving close to a
level it deems appropriate to start raising shortterm rates. World stocks tumbled towards their worst week of the year, while the dollar index hit its lowest
in two months after Chinese factory data added to doubts that the U.S. Federal Reserve will raise interest rates next month. Gold had already rebounded last week from July's 5-1/2 year low, boosted by minutes of the Fed's last policy meeting, which dented expectations for an imminent rise in
U.S. rates. Gold has come under heavy pressure this year from expectations that the Fed would raise rates for the first time in nearly a decade, lifting
the opportunity cost of holding non-yielding bullion while boosting the dollar. Colombia slashed its gold holdings by two-thirds last month, adjusting its
reserves for the first time in years, as spot prices sank in a bullion rout, International Monetary Fund data showed. It was the first time in at least two
years the country had changed its reserves of bullion, according to sources. The world's largest gold-backed exchange-traded fund, New York's SPDR
Gold Shares, reported an inflow of 3.6 tonnes, its first rise in more than a week. latest study report published by GFMS Thomson Reuters forecasts Indian gold demand to jump by 11% in 2015. The report states that the rupee price of gold will decline by 15% during the year, which will trigger fresh
purchases of the yellow metal. The yearly gold demand in India is likely to touch 936 tonnes in 2015, 11% higher when compared with the countrys
gold demand of 842.7 tonnes during the entire y ear 2014. Looking ahead to next week, fresh commentary coming out of the Fed Economic Symposium
in Jackson Hole, Wyoming may fuel further volatility in interest rate expectations amid the ongoing deterioration in global market sentiment. In addition,
the second revision on 2Q GDP will also be in focus with consensus estimates calling for an upward revision to an annualized rate of 3.2% q/q, up from
2.3%. With the threshold for a 2015 rate hike driftin g higher, a weaker-than-anticipated print could further
RECOMMENDATION : SELL COPPER @ 340 SL 348 TGT 332-324.SELL ZINC @ 118 SL 122 TGT 114.20-111. SELL NICKEL @ 685 SL 710 TGT
645-620.SELL ALUMINIUM @ 103 SL 106 TGT 100-98.50.SELL LEAD @ 114 SL 117 TGT 111-109.

ENERGY
FUNDAMENTAL : Crude oil prices ended with around 3.45% losses followed by more than two and half percent losses in natural gas prices. Where
crude oil dropped on signs of U.S. oversupply and weak Chinese manufacturing and notching the longest weekly losing streak in almost three
decades. Crude dipped below the $40 threshold following weekly data that showed U.S. energy firms added two oil drilling rigs last week, the fifth increase in a row. The rise in the number of rigs emerging after a second quarter lull in prices is adding to concerns U.S. shale production is proving slow to respond to falling prices, prolonging a global glut. Energy markets slid early in the day as world stock and currency markets joined an extended rout across raw materials this week, a slump accelerated on Friday by data showing activity in China's factory sector, a huge user of
many commodities, shrank at its fastest pace in almost 6-1/2 years in August. With deepening gloom over demand growth from the world's secondbiggest oil user, and expectations for a significant build-up in surplus oil stocks this autumn, most oil traders were unwilling to fight the tide. The
current collapse in oil prices, the second this year, has raised alarm within the OPEC, including some of its core Gulf members. However, there is no
indication they will reverse their policy of keeping production wide open to defend market share, delegates told. Naturalgas settled down as moderating heat forecast for the U.S. will cut air conditioner use and fuel demand from power plants. Gains in gas inventories will accelerate in the coming weeks with the waning summer heat, pressuring prices. Surging production has helped stockpiles climb 21 percent faster than the five-year
average since inventories began a seasonal increase in April. Gas futures have traded mostly between $2.60 and $2.95 since the start of the third
quarter. Gas stockpiles have expanded by 1.569 trillion cubic feet from the end of March to 3.03 trillion cubic feet on Aug. 14, a U.S. Energy Information Administration report Thursday showed. The five-year average for the same period is 1.299 trillion.
RECOMMENDATION : SELL CRUDE OIL @ 2720 SL 2850 TGT 2620-2550.SELL NAT.GAS @ 182 SL 190T GT 172-165.

- 5-

Vol.: 257
24th August,2015

Commodity Corner

Forex Corner

Market Recap :

The Indian rupee tumbled to its lowest level in two

years on Monday, 24 August 2015 following sustained capital outflows even as the US currency
weakened overseas. Rupee slumped to as low as
66.52 per dollar, its lowest since September 2013,
as Asian markets came under fears of a China-led
global economic slowdown.

Besides, strong dollar demand from importers and

banks, and heavy losses in domestic equity markets
weighed on the local currency.

Last week, the dollar fell more than 1% against the

euro and the yen on Friday as weak factory data
from China added to concerns over slowing global
growth and added to worries that the Federal
Reserve may delay hiking interest rates.

Market Eye Week ahead :

For this week, above 65.94 keep view for exit long positions in USDINR pair. On upside above 65.94 near term rise till
66.23-66.52 can be possible targets for traders holding long position.

If close below 65.94 and sustain then support can be seen at 65.44-64.93. From medium to long term view, this week
USDINR pair likely to remain range bond bound medium term investors can take long position for 66.23-66.52 targets. If
breaks 65.94 then expect 65.44-64.32 as stabilization zone for dollar from long term.

USD/INR
Level

S2

S1

CP

R1

R2

WRV

High

Low

Close

USD/INR

64.93

65.44

65.72

66.23

66.52

64.32

66.01

65.21

65.94

Level

S2

S1

CP

R1

R2

WRV

High

Low

Close

EUR/INR

71.07

72.72

73.60

75.24

76.12

71.15

74.47

71.95

74.37

Level

S2

S1

CP

R1

R2

WRV

High

Low

Close

GBP/INR

101.32

102.33

103.00

104.02

104.69

100.22

103.67

101.99

103.35

Level

S2

S1

CP

R1

R2

WRV

High

Low

Close

JPY/INR

51.85

52.83

53.35

54.32

54.84

52.04

53.86

52.37

53.81

EUR/INR

GBP/INR

JPY/INR

-- 46--

Vol.: 257
24th August,2015

J Street Recommendations Report Card

Traders long and holding the same can keep the stop loss at 7735-7700. Weakness and correction may be set in for near
term to short term on fall below 7735-7700. On fall and close below 7735-7700 further correction till the levels 7590-7500
of can be seen. Subsequently, deeper correction will be seen. Traders may look for rise to 8312-8453 to exit long.

Macroeconomic data, the progress of monsoon rains, trend in global markets, investment by foreign portfolio investors
(FPIs), the movement of rupee against the dollar and crude oil price movement will dictate trend on the market.

Investors continue to watch the progress of the monsoon rains which will have a bearing on food prices and rural income.

Top Fundamental Stocks

Stocks

Rec. Date

CMP on Rec.

CMP

Target

Absolute
Return @
CMP

Ahluwalia contracts

24/08/2015

235

235

368

0%

Buy

Sun Pharma

03/07/2015

831

891

1041

7%

Buy

Infinite Computer

20/07/2015

190

182

255

-4%

Buy

Nitin Spinners Ltd.

06/07/2015

79

72

94

-9%

Buy

Bank of Baroda

01/06/2015

163

183

217

12%

Hold

Ambika Cotton Mills

18/05/2015

880

777

1149

-12%

Buy

Sadbhav Engineering Ltd.

04/05/2015

298

315

430

6%

Buy

CARE Ltd.

20/04/2015

1666

1209

2250

-27%

Buy

30/03/2015

242

214

304

-12%

Buy

16/03/2015

152

173

251

14%

Buy

DHFL

16/02/2015

504

424

736

-16%

Buy

TV Today Network

27/01/2015

222

192

337

-13%

Buy

M&M

12/01/2015

1238

1240

1452

0%

Buy

Havells India

27/10/2014

274

248

346

-10%

Buy

All Cargo Logistics

05/08/2014

260

282

342

8%

Buy

PTC India Fin. Ser.

07/07/2014

39

39

45

0%

Buy

Adani Port

05/07/2014

280

335

347

20%

Hold

L&T

05/07/2014

1750

1633

1866

-7%

Buy

Setco Automotive
Ltd.
Omkar speciality
Chemicals

Status

It'snotimportantwhetheryouarerightorwrong,Itsabouthowmuchmoneyyoumakewhenyou'rerightandhow
muchyoulosewhenyou'rewrong.
- 7-

Vol.: 257
24th August,2015

J Street Short Term Call Status

BUY/
SELL

Sr.
No.

DATE

STOCK

13/07/15

IDFC

14/07/15

CANBK

15/07/15

4
5

16/07/15
17/07/15

20/07/15

21/07/15

22/07/15

23/07/15

10
11

24/07/15
27/07/15

12

28/07/15

ASIANPAINT BUY

846855

13

29/07/15

KOTAKBANK BUY

722730

14

30/07/15

BHEL

15

03/08/15

SIEMENS

16

04/08/15

17

TRIGGER
TGT
PRICE

%
RETURN

SL

STATUS

CMP

148

PB

163.60

6.23

282

SL

282.00

4.57

887

SL

887.00

3.59

714
263

PB
PB

782.00
287.85

3.99
5.05

1240

TA

1369.00

6.54

1222

PB

1323.80

3.42

171

SL

171.00

4.80

939

SL

939.00

3.59

380
50.05

SL
TA

380.00
69.00

4.52
22.12

850.00 902941

816

TA

902.00

6.12

722.00 770803

696

SL

696.00

3.60

PB

289.65

3.08

TA

1552.00

6.74

BHARAT
FORGE

281.00 300318 270

1552
BUY 14431458 1454.00
1378
1632
1248
BUY 11551168 1160.00
1103
1337

TA

1248.00

7.59

05/08/15

YESBANK

BUY

805

SL

805.00

3.59

18

06/08/15

INFY

1040

TA

1148.00

6.49

19

07/08/15

GLENMARK

1001

SL

1001.00

4.48

20

10/08/15

BPCL

914

SL

914.00

3.59

21

11/08/15

JINDALSTEL

74

PB

87.45

7.10

22

12/08/15

M&MFIN

23

13/08/15

24

14/08/15

- 8-

RANGE

BUY 154155.50 154.00 164175

BUY

295.50
298.50

295.50 316334

975
1012
KSCL
BUY 752760 752.00 809874
HEXAWARE BUY 274277 274.00 293315
1369
M&M
BUY 12851298 1285.00
1434
1377
MINDTREE BUY 12801293 1280.00
1467
161.50
150.55
CAIRN
SELL
162.80
163.50
138
1038
HCLTECH
BUY 974987 974.00
1087
TATAMOTORS BUY 398402 398.00 425451
IBREALEST BUY
5558
56.50 63.5069
HINDUNILVR BUY

BUY

920929

920.00

281284

835843

835.00 889939

1148
1203
1105
BUY 10371048 1048.00
1158
1011
BUY 948958 948.00
1057
BUY 8182.30 81.65 91101
BUY 10781089 1078.00

BUY

261264

261.00 279295

251

SL

251.00

3.83

SUNPHARMA BUY

859868

863.50 916946

828

TA

946.00

9.55

719727

723.00 769803

690

PB

748.00

3.46

CIPLA

BUY

Vol.: 257
24th August,2015

J Street Short Term Call Status

Sr.
No.

DATE

STOCK

BUY/
SELL

RANGE

25

17/08/15

ARVIND

BUY

291294

26

18/08/15

ICICIBANK

BUY

299303

27

19/08/15

28

20/08/15

LT

29

21/08/15

DRREDDY

STAUTS

CALLS

RATIO

TA+PB

14

48.28

SL+EXIT

15

51.72

TOTAL

29

100.00

TRIGGER
PRICE

SL

STATUS

CMP

%
RETURN

291.00 314339

275

SL

275.00

5.50

299.00 319334

288

SL

288.00

3.68

2991

SL

2991.00

3.52

1735

SL

1735.00

3.50

4110

SL

4110.00

3.52

ULTRACEMCO BUY 31003130 3100.00

TGT

3302
3458

1915
2006
4536
BUY 42604300 4260.00
4751
BUY 17981816 1798.00

One call on daily basis is given keeping view of short term trading on closing basis.
Time frame and expected % of return is also mentioned with the suggested call.
This call are purely given on technical trading system generated by the Technical Research Desk.
Generally Expected Return on investment is 5-6 % with time horizon of 6-7 days.
Profit Booking update is considered if on an average expected return exceed 3.50-4.00 % against the
Expected return of 5-6%
Risk- Reward ratio percentage wise depends on the volatility of stock Normally it stands ( 3 : 9)

- 9-

Vol.: 257
24th August,2015