December 4, 2023

Dear Esteemed Investor,

The Global Markets are showing one of a kind Bull Market traits once again.
Amidst so many uncertainties across US recession, Israel-Hamas rising
tension, Highly volatile Crude Oil prices, tepid festive season, Uncertainty
around State elections results, we believe that the indices have done
reasonably well.

To our surprise, Nifty has not outperformed the global indices from their
October lows, however, we are tiding along very well in this Global Bull
Ride.

Asset classes such as Gold and Silver have also moved up by almost 20% to
40% respectively from the Oct lows.

Dollar Index and Crude have corrected from the October-23 highs.

Sectorally we have seen the magic no different, right from the Realty to
Pharma to Energy to PSE everything has done well.

We believe that like in every phase of Bull Market getting the right mix of
the stocks with winners and identifying potential turnarounds, we have
managed to strike a balance for the current month report.

With the belief that the Glory days for Bull Market still ahead, we present
the last report for the calendar year 2023.

LKP Securities Limited

Mumbai

Disclaimer & Disclosure : LKP Securities Ltd. (CIN-U67120MH1994PLC080039, www.Lkpsec.com) and its affiliates are a full-fledged, brokerage and financing group. LKP Securities Ltd is a
SEBI registered Research Analyst with registration number INH000001758. LKP is a corporate trading member of Bombay Stock Exchange Limited (BSE), National Stock Exchange of India
Limited (NSE) and Metropolitan Stock Exchange of India Limited (MSEI). LKP along with its subsidiaries offers the most comprehensive avenues for investments and is engaged in the busi-
nesses including stock broking (Institutional and retail), merchant banking, commodity broking, depository participant rendered in connection with distribution of primary market issues and
financial products like mutual funds etc.
LKP offers research services to clients. The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company
or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.
Further, the information in the document has been printed on the basis of publicly available information; internal data and other sources believed to be true and are for general guidance
only but which may have not been verified independently. While every effort is made to ensure the accuracy and completeness of information contained, the company takes no responsibility
and assumes no liability for any error/ omission or accuracy of the information. Recipients of this material should rely on their own judgments and conclusions from relevant sources before
making any investment. The investments discussed or recommended in this report may not be suitable for all investors. Opinion expressed is the current opinion as of the date appearing
on the material only. Value of the investments referred to in this material are subject to volatility. Past performance is not a guide for future performance. Investment in securities market
are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the
intermediary or provide any assurance of returns to investors. The securities quoted are for illustration only and are not recommendatory.
Mr. Kunal Bothra (Research Analyst) - SEBI Registered No. INH000005263
 Reco CIE AUTOMOTIVE INDIA LIMITED
Reco : BUY
Fundamental View
Entry Range (₹) : 484 - 492
• The Indian Arm of the Global Auto Parts Major is synchronising its objectives in
Target Range (₹) : 517.6 / 541.2 line with the vision of its parent with a strategic intent to increase its wallet share
with its customers.
Stop Loss below (₹) : 388
• The MNC Auto Component company has a robust business model which aims to
Duration: 6 Months harness technological support of the CIE Group to expand its product offerings in
the rapidly evolving automobile space.

Technical View

Stock Data

Sector : Auto Components

BSE Code : 532756

NSE Symbol : CIEINDIA

FV (₹) : 10

Full MCap (₹ Crs) : 18,391

52-Week Range (₹) : 580 / 282

• Catching the stocks at a turn around points are always tricky, however if these
charts come with interesting patterns as well as a lot of stability, they become a
Shareholding - September 2023 lot more attractive.
13.2%
• CIE India is showing a similar contraction triangular pattern on the daily charts.
6.6%
• The volumes have stagnated, price ranges have fallen down, and the stock has
0.3%
completed a MEAN reversion.
14.2%
• We believe that it’s a matter of time that volumes could make a strong comeback,
65.7%
which could lead to the price breakout soon.
• An interesting Risk Reward bet.
Promoter Mutual Funds
Insurance FPI's
Others

LKP Securities Limited 2

 Reco GAIL (INDIA) LIMITED
Reco : BUY

Entry Range (₹) : 136 - 138.3

Target Range (₹) :
Stop Loss below (₹) :
Duration:
Fundamental View
• With India’s Gas Story beginning its growth journey, we pick GAIL on the back of
145.5 / 152.1 predictability in domestic gas pricing, improving gas transmission infrastructure,
commissioning of new gas pipelines and the new tariff policy which allows
109
recovery of past under-utilisation.
6 Months
• Rising Transmission Volumes for Natural Gas and better gas trading margins
during H2 should help continue the encouraging performance of GAIL witnessed
in H1 of the current fiscal.

Stock Data Technical View

Sector : Gas

BSE Code : 532155

NSE Symbol : GAIL

FV (₹) : 10

Full MCap (₹ Crs) : 89,619

52-Week Range (₹) : 137 / 90

Shareholding - September 2023

• One of the slower moving PSU’s is making a comeback. The stock has just recently
14.2% confirmed a 5 year pattern breakout after moving above the 130 odd level.
51.9%

10.2%
• We believe that the stock could continue to move up with high potential.

• Generally such PSU stocks continue to move in a range of 10-15% higher from the
previous breakout point after a multi year breakout confirmation.
14.8%
• Momentum indicators and oscillators are signalling a strong continuation move in
this “COMEBACK STORY” on GAIL.
8.9%
GOI MFs FPIs Insurance Others

LKP Securities Limited 3

 Reco NHPC LIMITED
Reco : BUY
Fundamental View
Entry Range (₹) : 56 - 57.1
• NHPC with a 7k MW capacity has a 15% market share in Hydro Power and is our
Target Range (₹) : 60.1 / 62.8 pick to play the Clean Energy Theme.

Stop Loss below (₹) : 45 • With a presence across 14 states, NHPC is executing India’s largest Hydro Project
at Subansiri and is taking rapid strides into Renewables.
Duration: 6 Months
• NHPC offers Growth At a Reasonable Price and it’s Compelling Valuations makes
it a preferred bet.

Technical View
Stock Data

Sector : Power Generation

BSE Code : 533098

NSE Symbol : NHPC

FV (₹) : 10

Full MCap (₹ Crs) : 56,554

52-Week Range (₹) : 58 / 37

• The charts of another PSU is at a multi month , multi year high. A closer look at
Shareholding - September 2023 the last 2 years of charts, indicate a steadiness of uptrend for the stock. Where
9.1% from a zone of 20 odd in start of 2021, the stock has now rallied almost 3x.
4.9%
• The strong aspect of the chart is the lack of major as well as prolonged correction
7.6% for the stock in this major rally mode.
• The short term charts are indicative of another Stochastic Oscillator breakout (red
7.4%
line crossing blue dotted line).
71.0%
• Going forward we expect the trend to continue further.

GOI MFs FPIs Insurance Others

LKP Securities Limited 4

 Reco NMDC LIMITED
Reco : BUY
Fundamental View
Entry Range (₹) : 182 - 185.3
• The Iron Ore Miner has set a capex plan of Rs 20bn for this fiscal and is well on
Target Range (₹) : 194.9 / 203.8 course to meet its guidance for the current year.

Stop Loss below (₹) : 146 • Renewed Focus on Mining post the demerger of its Steel Plant coupled with the
changing supply dynamics in Odisha bodes well for NMDC.
Duration: 6 Months
• NMDC has registered a 24% yoy rise in sales volumes during the first 8 months of
the current fiscal and is our pick to play the Mining Theme.

Technical View
Stock Data

Sector : Metals & Mining

BSE Code : 526371

NSE Symbol : NMDC

FV (₹) : 1

Full MCap (₹ Crs) : 53,440

52-Week Range (₹) : 185 / 104

• We are into a phase where many of the PSU stocks are at the cusp of a major
Shareholding - September 2023 multi year breakout.
8.3%
8.2% 8.7% • The charts for NMDC are now confirming almost a decadal breakout.
• This indicates that the stock trends on the medium to longterm could continue to
stay bullish and attractive.
14.1%
• The RSI formed on the monthly charts are at an all time high indicative that the
momentum is just building up and could see extremely high potential going
60.8% forward.

GOI MFs FPIs

Insurance Others

LKP Securities Limited 5

 Reco POONAWALLA FINCORP LIMITED
Reco : BUY

Entry Range (₹) : 408 - 415.3

Fundamental View
• Strong digital-driven AUM growth driven by the strategy to source loans
Target Range (₹) : 436.9 / 456.8 organically, Poonawalla has a healthy capital position with a strong moat on the
liability front.
Stop Loss below (₹) : 328
• AUM rose a robust ~53% YoY and 13.7% QoQ in previous quarter. Disbursements
Duration: 6 Months of Rs78bn grew 151% YoY. Niche financing products and the strong tech focus are
likely to aid expansion of loans at a 40% CAGR over FY23–FY25. Capital adequacy
of 42% should support this strong credit growth.
• NIM held stable at 11.4% despite the rising interest-rate environment as
management contained its cost of funds. Also, management judiciously utilised its
Stock Data one-time profit on sale of its Housing-Finance subsidiary to create a Rs14bn buffer,
which would protect it against delinquencies from the pre-acquisition book.
Sector : NBFC

BSE Code : 524000 Technical View

NSE Symbol : POONAWALLA

FV (₹) : 2

Full MCap (₹ Crs) : 31,451

52-Week Range (₹) : 452 / 243

Shareholding - September 2023

23.2%

1.2%
• The charts for the stock indicate a higher degree of volatility as compared to
many of the other midcap names as well as stocks from the same sector.
62.1%
7.9%
• Interestingly however after every phase of a sharp correction, the stochastic
5.6% oscillator has given a classical sign of turnaround for the stock.
• The turnaround indicates volatility will drop down for the stock and trends will
Promoter MFs FPIs
start to emerge. The recent candlestick pattern is also extremely strong on the
Insurance Others
back of strength of volumes backing the upmove.

LKP Securities Limited 6

 Reco PUNJAB NATIONAL BANK
Reco : BUY

Entry Range (₹) : 80 - 81.8 Fundamental View

• Improvement in Asset Quality coupled with provision coverage ratio of over 90%
Target Range (₹) : 86 - 89.9 makes PNB our pick in the PSU banking space.
Stop Loss below (₹) : 65 • Robust credit growth and attractive valuations gives us comfort on the risk-
reward for PNB.
Duration: 6 Months

Technical View

Stock Data

Sector : Public Sector Bank

BSE Code : 532461

NSE Symbol : PNB

FV (₹) : 2

Full MCap (₹ Crs) : 88,749

52-Week Range (₹) : 84 / 44

• One of the higher beta PSB and an excellent TREND FINDER for the current
calendar year.
Shareholding - September 2023
10.4%
• The stock has moved up by almost 50% or more in this calendar year 2023.

8.9% • The stock is also forming an Inverted Head and Shoulder pattern which is more of
a continuation breakout, rather than a reversal breakout. Such patterns indicate
2.7%
that the stock would rally after a phase of price consolidation.
4.9%
• Near term supports are closer to 70-72 zone for the stock.

73.2%

GOI MFs FPIs Insurance Others

LKP Securities Limited 7

 Reco UNION BANK OF INDIA
Reco : BUY
Fundamental View
Entry Range (₹) : 108 - 110.3
• Union Bank is consistently reporting strong business growth (credit + deposit)
Target Range (₹) : 116 / 121.3 driven by rural and semi urban channels.

Stop Loss below (₹) : 87 • In our view NIMs should sustain with lower cost of funds.

Duration: 6 Months
• Lower Provision expected going forward given the lower NPA formation. Hence,
lower credit cost will lead to superior RoA and RoE.

Technical View

Stock Data

Sector : Public Sector Bank

BSE Code : 532477

NSE Symbol : UNIONBANK

FV (₹) : 10

Full MCap (₹ Crs) : 80,499

52-Week Range (₹) : 116 / 60

• We have witnessed a sort of golden period for many PSU names, especially the
PSB’s where these stocks have done exceptionally well over the past year or so.
Shareholding - September 2023
• Classically these stocks have gone through their odd phases of consolidation in
10% between, just like the charts of Unionbank are suggesting currently.
3% 7%
3%
• This indicates that the stock is again at an attractive risk reward juncture where
the prices had been underperforming.
• Near term resistance is closer to 115-118 zone.

77%

GOI MFs FPIs Insurance Others

LKP Securities Limited 8

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Mumbai-400059
Tel: +91 22 66351234, Email: research@lkpsec.com

LKP Securities Limited 9