Sr. No.

Name of the Company 18th July, 2014 Closing Price Number of stocks
1 DB Corp 321.85 310.70
2 Marksons Pharma 33.1 3021.15
3 Divi's Lab 1495.6 66.86
4 Natco Pharma 1100 90.91
5 J.K. Cement 394.15 253.71
6 Motilal Oswal Financial Services 243.1 411.35
7 Jaypee Infratech 37.15 2691.79
8 Indraprastha Gas 373.95 267.42
9 Blue Star 303 330.03
10 IFB Industries 151 662.25
Batch Number-8
Total
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
1,000,000
Batch Number-8
Sr. No. Name of the Company
1 DB Corp
2 Marksons Pharma
3 Divi's Lab
4 Natco Pharma
5 J.K. Cement
6 Motilal Oswal Financial Services
7 Jaypee Infratech
Batch Number-8
8 Indraprastha Gas
9 Blue Star
10 IFB Industries
Reason 1
Media Industry is estimated to growth at a rate of over 15.2%
CAGR due to digitization and high preferance of local content in
print media. DB Corp is the market leader in this with a strong
distribution network. To put things in perspective, DB Corp's
Gujarati Edition has been launched in Mumbai thereby
boosting the sales in the region
Company has recently received ANDAs approval from US FDA
and are in the processof approval for more products giving it
more access to US market.
Increased production due to recent capacity augmentation
program at their DSN SEZ plant.
Natco Pharmarecently received tentative approval for its 6
drugs including Oseltamivir, Glatiramer etc. and have a strong
product pipeline for next 5 years which promises sustainable
growth.
Strong 22%/43% and 10%/28% yoy growth in white
cement/wall putty in FY 13 /FY 14 increased market share. Also
it has 13% CAGR in EPS for last 5 years and a Beta of 1.15
Venturing into Home Financing through its arm Aspire Home
Finance Corporation. Housing is one of the priority sector of the
new government and hence this business will grow.
Yamuna Expressway toll collection has been increasing
consistently. It was able to replace its high cost debt with low
cost debt from IDBI. Although the company is in the
Infrastructure industry its Debt to Equity ratio is only 1.21. The
net profit margin too is 21.09% which is high as compared to
industry average.
Batch Number-8
Strong foothold in Delhi NCR region and gaining presence
elsewhere too. Govt. decision to double the gas pipeline in the
country is a boost
Amalgamation with its subsidiaries BSDEL and BSEML
expected to increase in operational efficiency
Addition of AC's in the appliances product line expected to
boost topline
Reason 2
The company's Q1FY15 results were better than broker estimates
so there is a very positive sentiment among investors
New products launched in FY12 and FY13 generated revenues of
Rs 274mn in FY13.We expect the new products to drive future
growth of the company.
Expected 30% growth in the revenues and a 53% surge in the net
profit of the company in Q1FY2015 which is better than the
industry average rate.
Started expansion in to new geographies like China, Brazil,
Singapore etc. leading to a bigger and growing market for its
products.
UAE white cement project launched. JK Cements 0.6m-ton plant
in Fujairah, the UAE, was fully operational in Mar 2014. It is
expected to operate at ~50 percent utilisation in FY15 and
gradually increase.
With industries growing, capital markets will be one of the largest
beneficiaries and thus Motilal's Brokerage arm will benefit. The
asset management and private equity subsidiaries are showing
great growth
It has the right to develop 25 mn sqmt of land along Yamuna
Expressway. Development of integrated townships along the
Yamuna expressway is a huge opportunity which is being
leveraged.
Batch Number-8
CNG segment growing at 11% CAGR for the past four years;
PNG emerging as the high growth segment growing at a pace of
46% CAGR
Large order book expected in the coming quarter; previous year
will be cleared in the coming quarter
High beta - 1.8 ; Low P/E 28 when compared to industy P/E of 41
Reason 3
It is a regional player and its popularity enables it to command a
premium over national players (Due to this popularity it has the
ability to take price hikes). DB Corp operates in 4 languages
Billions of US$ worth of drugs going off patent each year in US.
Marrksons Pharma is tieing up with multinationals, generic
companies and distributors for the distribution of its products in
the US.
Low P/E 22.6 when compared to industy P/E of 27; recent 1000%
dividend to shareholders is a being seen as huge positive
Recently, Bombay High Court upheld the compulsory license
granted to Natco Pharma on Nexavar of Bayer's patented kidney
cancer drug which boosted Natco's business. In another case,
Supreme Court Chief Justice Roberts has denied Teva's
application for an injunction seeking to prevent launch of a
generic version of Copaxone which furhter benefitted Natco
Pharma.
Increase in capacity. Rajasthan project to boost grey cement
growth. Grey cement over FY11-14 had recorded a meagre 2
percent CAGR due to capacity limitations at the North plant and
subdued demand in the South-West. The new 3m-ton grey cement
project in Rajasthan coupled with improved demand in South-
West is expected to result in a 17 percent volume CAGR over
FY14-17. Infrastructure requirements, real estate boom will
The operating profit margin is very high at 83% way above
industry average. Net profit margin of 40.82% in FY 13 is also
high. It indicates that it has been efficient in minimizing its costs.
Healthcare is high growth sector and the company started a
subsidiary Jaypee Healthcare, which was incorporated in 2012.
Once the 504 bed multi speciality hospital commences its
operations, it would be a booster for Jaypee's revenues.
Batch Number-8
Healthy valuation ratios with ROE 20%,PE of 12.6
The companys Electro Mechanical Projects and Packaged Air-
conditioning Systems (EMPPAC) division, which contributes ~57
percent to total revenues, will benefit from an expected revival in
the economy as the division caters mainly to
institutional/commercial clients.
Margins grew 122% in the previous quarter; a large client base
expected to show a good growth in the upcoming fiscal
Roll No. Name Batch No.
C016 Kriti Goyal
C018 Rahul Gupta
C022 Rohan Jain
C024 Ashwini Karkera
C033 Ajit Nayak
C037 Jay Parikh
8
Name of the Company-Week 1 25th July, 2014 Closing Price Number of stocks
1 DB Corp 323.1 309.45
2 Marksons Pharma 33.7 3012.05
3 Divi's Lab 1498.1 66.80
4 Natco Pharma 1095.8 91.42
5 J.K. Cement 383.7 252.24
6 Motilal Oswal Financial Services 231.8 406.50
7 Jaypee Infratech 33.2 2695.42
8 Indraprastha Gas 370.95 267.67
9 Blue Star 293 327.28
10 IFB Industries 155.8 658.76
Total
Batch Number-0
Portfolio Value Name of the Company-Week 2 25th July, 2014 Closing Price Number of Stocks
99984.53 DB Corp 323.1 309.45
101506.02 Marksons Pharma 33.7 3012.05
100073.48 Divi's Lab 1498.1 66.80
100178.27 Natco Pharma 1095.8 91.42
96783.96 J.K. Cement 383.7 252.24
94227.64 JK Lakhsmi Cement 220.9 426.56
89487.87 Maruti Suzuki 2509.3 35.66
99290.69 Indraprastha Gas 370.95 267.67
95892.65 Unichem Laboratories 207.55 462.02
102635.05 IFB Industries 155.8 658.76
980060.16 Total
Batch Number-0
Portfolio Value
99984.53
101506.02
100073.48
100178.27
96783.96
94227.64
89487.87
99290.69
95892.65
102635.05
980060.16
Batch Number-0
Name of the Company Reason 1
1
DB Corp
Media Industry is estimated to growth at a rate of
over 15.2% CAGR due to digitization and high
preferance of local content in print media. DB Corp
is the market leader in this with a strong
distribution network. To put things in perspective,
DB Corp's Gujarati Edition has been launched in
Mumbai thereby boosting the sales in the region
2
Marksons Pharma
Company has recently received ANDAs approval
from US FDA and are in the processof approval for
more products giving it more access to US market.
3
Divi's Lab
Increased production due to recent capacity
augmentation program at their DSN SEZ plant.
4
Indraprastha Gas
Strong foothold in Delhi NCR region and gaining
presence elsewhere too. Govt. decision to double
the gas pipeline in the country is a boost
5
Natco Pharma
Natco Pharmarecently received tentative approval
for its 6 drugs including Oseltamivir, Glatiramer etc.
and have a strong product pipeline for next 5 years
which promises sustainable growth.
6
J.K. Cement
Strong 22%/43% and 10%/28% yoy growth in white
cement/wall putty in FY 13 /FY 14 increased market
share. Also it has 13% CAGR in EPS for last 5 years
and a Beta of 1.15
7
J K Lakshmi Cement
It has been to minimze its cost in different areas. It
has reduced the power consumption per MT of
cement by 9%. It has reduced the fuel consumption
per MT of cement by 5% in last 5 years. It has
reduced the cost of debt on long term financing
through annual resetting
Batch Number-8
8
Maruti Suzuki
The four wheeler industry especially Maruti is
posting very strong volumes. This has helped it
increase its revenues and profits. The EPS of the
company has increased at a CAGR of 17% from
2010 to 2014
9
Unichem Laboratories
Revenue grew by 9.6 % year on year which was
driven by strong export revenues. Export
formulation will be key growth driver for the
company. The EBITDA margins are 15% which
reduced because of new pricing policy which has
affected the domestic portfolio.
10
IFB Industries
Addition of AC's in the appliances product line
expected to boost topline
Name of the Company exited after week 1 Reasons
Jaypee Infratech
Net profit of Jaypee Infratech declined 43.27% to Rs
45.96 crore in the quarter ended June 2014 as
against Rs 81.01 crore during the previous quarter
ended June 2013. This declined results is against the
expected performance
BlueStar
Company performance was expected to outperform
due to the merger. The efficiency hasn't increased
as expected
Motilal Oswal Financial Services
We expected Motilal Oswal to outperform the Q1
results with better saales and EPS. However the
company has performed as expected and hence we
expect profit booking for next few days
Reason 2
The company's Q1FY15 results were better than
broker estimates so there is a very positive
sentiment among investors
New products launched in FY12 and FY13 generated
revenues of Rs 274mn in FY13.We expect the new
products to drive future growth of the company.
Expected 30% growth in the revenues and a 53%
surge in the net profit of the company in Q1FY2015
which is better than the industry average rate.
CNG segment growing at 11% CAGR for the past
four years; PNG emerging as the high growth
segment growing at a pace of 46% CAGR
Started expansion in to new geographies like China,
Brazil, Singapore etc. leading to a bigger and
growing market for its products.
UAE white cement project launched. JK Cements
0.6m-ton plant in Fujairah, the UAE, was fully
operational in Mar 2014. It is expected to operate at
~50 percent utilisation in FY15 and gradually
increase.
Infrastructure sector is a booming sector and
favourable policies by the government will increase
funding to this sector and thus help cement
business to grow. Additionally, prices of cement
have increased by 10% which will be reflected in the
profits and revenues of the company
Batch Number-8
The cash from operating activities has been
increasing manifold which is a good sign of a healthy
company. The Debt to Equity ratio of the company
is 0.07 which is very low as compared to the peers.
The inventory turnover ratio is also low which
justifies that they are managing their production
effectively.
The domestic API business has grown 81% Year on
Year. The company has acquired one API facility in
Maharashtra whose effects will be seen on
quarterly results in Q3 or Q4 FY15
High beta - 1.8 ; Low P/E 28 when compared to
industy P/E of 41
The sales were supposed to increase due to better
toll collection and increased selling of houses
through the Yamuna Expressway. However the
economic activity has not provided that impetus
resulting in declined sales of 8% Q-O_Q basis
The scenario of the company would be clear once
the quarterly results are out and there will be more
clarity on the growth of the company
Market sentiments as a whole has been on
downside and we expect this to continue for
another few weeks. This along with the fact that the
companies expenses has increased due to lower
commission margins will not be able to fetch us gain
in the portfolio and hence we decided to move out
of BFSI sector
Reason 3
It is a regional player and its popularity enables it to command
a premium over national players (Due to this popularity it has
the ability to take price hikes). DB Corp operates in 4 languages
Billions of US$ worth of drugs going off patent each year in US.
Marrksons Pharma is tieing up with multinationals, generic
companies and distributors for the distribution of its products
in the US.
Low P/E 22.6 when compared to industy P/E of 27; recent
1000% dividend to shareholders is a being seen as huge
positive
Healthy valuation ratios with ROE 20%,PE of 12.6
Recently, Bombay High Court upheld the compulsory license
granted to Natco Pharma on Nexavar of Bayer's patented
kidney cancer drug which boosted Natco's business. In another
case, Supreme Court Chief Justice Roberts has denied Teva's
application for an injunction seeking to prevent launch of a
generic version of Copaxone which furhter benefitted Natco
Pharma.
Increase in capacity. Rajasthan project to boost grey cement
growth. Grey cement over FY11-14 had recorded a meagre 2
percent CAGR due to capacity limitations at the North plant
and subdued demand in the South-West. The new 3m-ton grey
cement project in Rajasthan coupled with improved demand in
South-West is expected to result in a 17 percent volume CAGR
over FY14-17. Infrastructure requirements, real estate boom
will increase demand for cement.
Company's greenfield project of 27 lakh ton at Durg in
Chattisgarh is going to start its operations in Q3 FY 15 which
will lead to growth in revenues and thus profitability. Other
projects such as Kiln project, Jhajjar expansion started its
operations in 2014
Batch Number-8
The budget has increased the tax slabs and hence the
disposable incomes of the consumers has increased. This will
increase spending on automobiles and luxurious items.
The domestic business has been hit due to new pricing policy.
The management has strategically focused its attention on
international markets and hence this will have a positive impact
on the profitability. Also the Medical representative
productivity is low and company has shifted its focus on
improving the MR productivity which is also a positive sign
Margins grew 122% in the previous quarter; a large client base
expected to show a good growth in the upcoming fiscal
We wanted to diversify our portfolio to risk in our portfolio and
hence we had to remove Jaypee Infratech which was resulting
in higher correlation
We wanted to diversify our portfolio to risk in our portfolio and
hence we had to remove Bluestar which was resulting in higher
correlation. Consumer durable was changed to Maruti Suzuki a
large cap stock which would provide stable returns
Also, the replacement of other stocks in the portfolio along
with Motilal Oswal Financial Service Ltd. was resulting in higher
correlation and thus we decided to add other stock to reduce
the risk associated
Name of the Company-Week 2 1st August, 2014 Closing Price Number of stocks Portfolio Value
DB Corp 323.45 309.45 100092.84
Marksons Pharma 32.55 3012.05 98042.17
Divi's Lab 1495.95 66.80 99929.86
Natco Pharma 1078.65 91.42 98610.41
J.K. Cement 400.75 252.24 101084.63
JK Lakhsmi Cement 267.45 426.56 114084.12
Maruti Suzuki 2586 35.66 92223.18
Indraprastha Gas 380.5 267.67 101846.90
Unichem Laboratories 207.75 462.02 95985.06
IFB Industries 200.75 658.76 132246.38
Total 1034145.54
Batch Number-8
Name of the Company-Week 3 25th July, 2014 Closing Price Number of Stocks Portfolio Value
DB Corp 323.45 309.45 100092.84
Aurobindo Pharma 707.25 138.62 98042.17
Divi's Lab 1495.95 66.80 99929.86
Hero Moto Corp 2596.55 37.98 98610.41
J.K. Cement 400.75 252.24 101084.63
JK Lakhsmi Cement 267.45 426.56 114084.12
Maruti Suzuki 2586 35.66 92223.18
Indraprastha Gas 380.5 267.67 101846.90
Unichem Laboratories 207.75 462.02 95985.06
IFB Industries 200.75 658.76 132246.38
Total 1034145.54
Batch Number-8
Name of the Company
1
DB Corp
2
Hero Moto Corp
3
Divi's Lab
4
Indraprastha Gas
5
Aurobindo Pharma
6
J.K. Cement
Batch Number-8
7
J K Lakshmi Cement
8
Maruti Suzuki
9
Unichem Laboratories
10
IFB Industries
Name of the Company exited after week 2
Natco Pharma
Marksans Pharma
Reason 1 Reason 2
Media Industry is estimated to growth at a rate of over
15.2% CAGR due to digitization and high preferance of
local content in print media. DB Corp is the market leader
in this with a strong distribution network. To put things in
perspective, DB Corp's Gujarati Edition has been
launched in Mumbai thereby boosting the sales in the
region
The company's Q1FY15 results were better than
broker estimates so there is a very positive
sentiment among investors
Two-wheeler is the only segment in the Indian
Automotive industry which is likely to report 10-12%
volume growth in H1FY15 as against flat to declining sales
for passenger cars and CVs, respectively. Strong product
portfolio and new launches of Splendor iSmart including
the new Xtreme, Karizma and ZMR are driving volumes
across markets
HMCL has reported a 8.67 percent increase in its
total sales at 5,29,862 units in July 2014. It had sold
4,87,545 units in the same month last year. With thr
Q1 results expected on 5th August, the stock looks a
bagger.
Increased production due to recent capacity
augmentation program at their DSN SEZ plant.
Expected 30% growth in the revenues and a 53%
surge in the net profit of the company in Q1FY2015
which is better than the industry average rate.
Strong foothold in Delhi NCR region and gaining presence
elsewhere too. Govt. decision to double the gas pipeline
in the country is a boost
CNG segment growing at 11% CAGR for the past
four years; PNG emerging as the high growth
segment growing at a pace of 46% CAGR
Aurobindo Pharma has shown robust revenue growth led
by a strong US pipeline. Recent acquision of Actavis is
expected to drive revenues to 24% CAGR over the next 3
years. A strong US pipeline (170 pending ANDAs) and
launches in low-competition segment would scale-up the
US business (16 percent CAGR).
Backward integration plans in India and focus on
product mix would result in greater scale and
profitability. 250 new product launches (1200+
currently) is expected to drive the margins to
around 13-15% in next 4 years
Strong 22%/43% and 10%/28% yoy growth in white
cement/wall putty in FY 13 /FY 14 increased market
share. Also it has 13% CAGR in EPS for last 5 years and a
Beta of 1.15
UAE white cement project launched. JK Cements
0.6m-ton plant in Fujairah, the UAE, was fully
operational in Mar 2014. It is expected to operate at
~50 percent utilisation in FY15 and gradually
increase.
Batch Number-8
It has been to minimze its cost in different areas. It has
reduced the power consumption per MT of cement by
9%. It has reduced the fuel consumption per MT of
cement by 5% in last 5 years. It has reduced the cost of
debt on long term financing through annual resetting
Infrastructure sector is a booming sector and
favourable policies by the government will increase
funding to this sector and thus help cement
business to grow. Additionally, prices of cement
have increased by 10% which will be reflected in the
profits and revenues of the company
The four wheeler industry especially Maruti is posting
very strong volumes. This has helped it increase its
revenues and profits. The EPS of the company has
increased at a CAGR of 17% from 2010 to 2014
The cash from operating activities has been
increasing manifold which is a good sign of a healthy
company. The Debt to Equity ratio of the company
is 0.07 which is very low as compared to the peers.
The inventory turnover ratio is also low which
justifies that they are managing their production
effectively.
Revenue grew by 9.6 % year on year which was driven by
strong export revenues. Export formulation will be key
growth driver for the company. The EBITDA margins are
15% which reduced because of new pricing policy which
has affected the domestic portfolio.
The domestic API business has grown 81% Year on
Year. The company has acquired one API facility in
Maharashtra whose effects will be seen on
quarterly results in Q3 or Q4 FY15
Addition of AC's in the appliances product line expected
to boost topline
High beta - 1.8 ; Low P/E 28 when compared to
industy P/E of 41
Reasons
The portfolio was heavily weighed in favour of Pharma,
and we felt the need to remove this overdependence and
diversify our portfolio.
The stock had gained on the recent Bombay High
Court ruling upholing the license granted to Pharma.
The stock has shown signs of correcting itself, the
muted performance of Pharma last week also
helped our decision.
The portfolio was heavily weighed in favour of Pharma,
and we felt the need to remove this overdependence and
diversify our portfolio.
The scenario of the company would be clear once
the quarterly results are out and there will be more
clarity on the growth of the company
Reason 3
It is a regional player and its popularity enables it to command
a premium over national players (Due to this popularity it has
the ability to take price hikes). DB Corp operates in 4 languages
HMCL has gained 2.90% market share at the cost of 4.9%
market share loss of Bajaj Auto in the motorcycle
segment.Hero MotoCorp become the first Indian two-wheeler
maker to have a manufacturing facility in Latin America, where
it has set up its wholly-owned subsidiary in Colombia HMCL
Colombia SAS, strengthening the latin american market.
Low P/E 22.6 when compared to industy P/E of 27; recent
1000% dividend to shareholders is a being seen as huge
positive
Healthy valuation ratios with ROE 20%,PE of 12.6
Is among one of seven global companies that have signed sub-
licensing agreement with UN backed medical licencsing pool for
the manufacture of generic drugs -atazanavir and dolutegravir
Increase in capacity. Rajasthan project to boost grey cement
growth. Grey cement over FY11-14 had recorded a meagre 2
percent CAGR due to capacity limitations at the North plant
and subdued demand in the South-West. The new 3m-ton grey
cement project in Rajasthan coupled with improved demand in
South-West is expected to result in a 17 percent volume CAGR
over FY14-17. Infrastructure requirements, real estate boom
will increase demand for cement.
Batch Number-8
Company's greenfield project of 27 lakh ton at Durg in
Chattisgarh is going to start its operations in Q3 FY 15 which
will lead to growth in revenues and thus profitability. Other
projects such as Kiln project, Jhajjar expansion started its
operations in 2014
The budget has increased the tax slabs and hence the
disposable incomes of the consumers has increased. This will
increase spending on automobiles and luxurious items.
The domestic business has been hit due to new pricing policy.
The management has strategically focused its attention on
international markets and hence this will have a positive impact
on the profitability. Also the Medical representative
productivity is low and company has shifted its focus on
improving the MR productivity which is also a positive sign
Margins grew 122% in the previous quarter; a large client base
expected to show a good growth in the upcoming fiscal
Markets have begun correcting in the last week with SENSEX
dropping by 2.5%, and the downward momentum is expected
to continue next week too. Underperforming stocks had to be
removed.
Markets have begun correcting in the last week with SENSEX
dropping by 2.5%, and the downward momentum is expected
to continue next week too. Underperforming stocks had to be
removed.
Name of the Company-Week 2 8th August, 2014 Closing Price Number of stocks
1 DB Corp 322.05 309.45
2 Aurobindo Pharma 722.15 138.62
3 Divi's Lab 1500.8 66.80
4 Hero Moto Corp 2591.75 37.98
5 J.K. Cement 421.65 252.24
6 JK Lakshmi Cement 260.25 426.56
7 Maruti Suzuki 2622.6 35.66
8 Indraprastha Gas 350.9 267.67
9 Unichem Laboratories 214.2 462.02
10 IFB Industries 193.75 658.76
Total
Batch Number-8
Portfolio Value Name of the Company-Week 3 8th August, 2014 Closing Price
99659.60 Sanofi India 3116.25
100107.67 Aurobindo Pharma 722.15
100253.84 Divi's Lab 1500.8
98428.12 Hero Moto Corp 2591.75
106356.41 J.K. Cement 421.65
111012.87 Godrej 327
93528.43 Maruti Suzuki 2622.6
93923.98 Astra Microwave 133.55
98965.10 Unichem Laboratories 214.2
127635.05 Lupin 1160.45
1029871.08
151
100000
Batch Number-8
Number of Stocks Portfolio Value
31.98 99659.60 3119.8 99773.13
138.62 100107.67 767.2 106352.7
66.80 100253.84 1460.9 97588.51
37.98 98428.12 2510.55 95344.35
252.24 106356.41 484.7 122260.1
339.49 111012.87 333 113049.8
35.66 93528.43 2666.55 95095.8
703.29 93923.98 131.55 92517.41
462.02 98965.10 211.3 97625.23
109.99 127635.05 1183.4 130159.3
Total 1029871.08 1049766
4.976626
662.2516556 150066.2252
Batch Number-8
Name of the Company
1
Sanofi India
2
Hero Moto Corp
3
Divi's Lab
4
Lupin
5
Aurobindo Pharma
6
J.K. Cement
Batch Number-8
7
Godrej
8
Maruti Suzuki
9
Unichem Laboratories
10
Astra Microwave
Name of the Company exited after week 2
IFB industries
JK Lakshmi Cement
DB Corp
Indraprastha Gas
Reason 1 Reason 2
Recently, Sanofi india inked a marketing & distribution
pact with Emcure for cancer drugs, which will further
intensify its sales in India. The Pharma industry has called
for a dialogue with Govt. authorities rather than a Court
battle over price control issue, which is being seen as a
positive sign by the market.
Companies have seen a correction in their stock
prices this week, however Sanofi has remained
positive indicating its strong fundamentals.
Two-wheeler is the only segment in the Indian
Automotive industry which is likely to report 10-12%
volume growth in H1FY15 as against flat to declining sales
for passenger cars and CVs, respectively. Strong product
portfolio and new launches of Splendor iSmart including
the new Xtreme, Karizma and ZMR are driving volumes
across markets
HMCL has reported a 8.67 percent increase in its
total sales at 5,29,862 units in July 2014. It had sold
4,87,545 units in the same month last year. With thr
Q1 results expected on 5th August, the stock looks a
bagger.
Increased production due to recent capacity
augmentation program at their DSN SEZ plant.
Expected 30% growth in the revenues and a 53%
surge in the net profit of the company in Q1FY2015
which is better than the industry average rate.
Lupin owns a healthy product pipeline for its US business
(200 ANDAs filed, 103 approved and 72 launches), which
includes some limited competition products to take care
of sustained sales growth with abou 20% CAGR for the
next four or five years.
Lupinhas inked a marketing pact with South Korea's
LG Life Sciences to launch its anti-diabetes drug in
India which will help the company to further
strengthen its diabetes portfolio enabling it to grow
deeper into the segment and fuel sales growth.
Aurobindo Pharma has shown robust revenue growth led
by a strong US pipeline. Recent acquision of Actavis is
expected to drive revenues to 24% CAGR over the next 3
years. A strong US pipeline (170 pending ANDAs) and
launches in low-competition segment would scale-up the
US business (16 percent CAGR).
Backward integration plans in India and focus on
product mix would result in greater scale and
profitability. 250 new product launches (1200+
currently) is expected to drive the margins to
around 13-15% in next 4 years
Strong 22%/43% and 10%/28% yoy growth in white
cement/wall putty in FY 13 /FY 14 increased market
share. Also it has 13% CAGR in EPS for last 5 years and a
Beta of 1.15
UAE white cement project launched. JK Cements
0.6m-ton plant in Fujairah, the UAE, was fully
operational in Mar 2014. It is expected to operate at
~50 percent utilisation in FY15 and gradually
increase.
Batch Number-8
Better than expected Q1 results announced on 9-Aug will
drive the prices upwards in short term.
Strong Fundamentals coupled with high growth. Its
operating profit (EBITDA) jumped 54.3 percent to Rs
125 crore in the quarter gone by and margin
expanded by 110 basis points to 5.4 percent.
The four wheeler industry especially Maruti is posting
very strong volumes. This has helped it increase its
revenues and profits. The EPS of the company has
increased at a CAGR of 17% from 2010 to 2014
The cash from operating activities has been
increasing manifold which is a good sign of a healthy
company. The Debt to Equity ratio of the company
is 0.07 which is very low as compared to the peers.
The inventory turnover ratio is also low which
justifies that they are managing their production
effectively.
Revenue grew by 9.6 % year on year which was driven by
strong export revenues. Export formulation will be key
growth driver for the company. The EBITDA margins are
15% which reduced because of new pricing policy which
has affected the domestic portfolio.
The domestic API business has grown 81% Year on
Year. The company has acquired one API facility in
Maharashtra whose effects will be seen on
quarterly results in Q3 or Q4 FY15
Approval of increase in FDI limit in defence to 49% on
Thursday
It has a strong book order with contribution from
Exports at Rs3,800mn, Defence at Rs3,940mn,
Space at Rs280mn and Metrological & Telecom at
Rs110mn, which guarantees strong growth in its
revenues.
Reasons
After giving supernormal returns for the past 3 weeks we
are exiting this stock as it has began correcting
The Q1 results has been factored in the stock price
movements and is now moving past it
JK Lakshmi has given us the expected returns after its
strong quaterly results
We wanted to reduce cement stocks in our portfolio
because of the volatality the market is undergoing
this week and we believe it to continue next week
We decided to move out of media sector as the sector is
not giving us expected results in short term
The stock has high correlation with the index and
we feel that the market will continue to correct in
this week
We decided to move out of energy sector because of the
volatality the market is undergoing this week and we
believe it to continue next week;
Quaterly results is above estimate but primarily due
to lower depreciation at INR368m (-31% YoY, -34%
QoQ) on a lower rate as per Companies Act 2013
else the performance is as per expectation and
already reflects in the stock price; Volumes below
estimate: CNG volumes were below estimates due
to stoppage of offtake by some industrial
consumers.
Reason 3
The stock is currently trading underpriced with it P/E ratio
below than the pharma industry average of 27.35. One of the
value stock in pharma sector
HMCL has gained 2.90% market share at the cost of 4.9%
market share loss of Bajaj Auto in the motorcycle
segment.Hero MotoCorp become the first Indian two-wheeler
maker to have a manufacturing facility in Latin America, where
it has set up its wholly-owned subsidiary in Colombia HMCL
Colombia SAS, strengthening the latin american market.
Low P/E 22.6 when compared to industy P/E of 27; recent
1000% dividend to shareholders is a being seen as huge
positive
In recently declared results,its EBITDA margin have reached an
exceptional level of 32.2% and management has raised its full-
year EBITDA margin outlook to 28-30%. We expect that the
company surplus scenario is likely to continue for the next
three years, which will keep its growth story in the coming
quarters also.
Is among one of seven global companies that have signed sub-
licensing agreement with UN backed medical licencsing pool for
the manufacture of generic drugs -atazanavir and dolutegravir
Increase in capacity. Rajasthan project to boost grey cement
growth. Grey cement over FY11-14 had recorded a meagre 2
percent CAGR due to capacity limitations at the North plant
and subdued demand in the South-West. The new 3m-ton grey
cement project in Rajasthan coupled with improved demand in
South-West is expected to result in a 17 percent volume CAGR
over FY14-17. Infrastructure requirements, real estate boom
will increase demand for cement.
Batch Number-8
The stock has given at Breakout at 325, The RSI is 70.10, MACD
is 10.88 and William R% is 0.81 all indicating further upside
for a period of 7-10 days.
The budget has increased the tax slabs and hence the
disposable incomes of the consumers has increased. This will
increase spending on automobiles and luxurious items.
The domestic business has been hit due to new pricing policy.
The management has strategically focused its attention on
international markets and hence this will have a positive impact
on the profitability. Also the Medical representative
productivity is low and company has shifted its focus on
improving the MR productivity which is also a positive sign
Astra Micros Net sales rose to Rs.1,874 mn and Net profit
stood at Rs.191mn for Q1FY15, as against the guidance of
Rs.2,000mn in Net sales and Rs.250mn in Net profit. This is
leading to a start of bull run on stocks in the market.