ashika weekly report

• Global markets have been concerned with rising inf lation in the US and

the chances of a retreat of monetary stimulus and tightening of rates

could spook emerging markets , as funds flows out to the developed

ones. Economic data set have also been strong from US, Eurozone to

Japan.

• Although, global economic recovery could just stop from being broad-

based because of r is ing covid-19 cases in many parts of the world.

• Despite the risks of second wave derail ing the economic growth, markets

haven’t factored anything adverse.

• This could be because of the fact that majority of the pol icymakers are

stil l on a wait and watch mode. Even the Q4FY21 corporate earnings

season has been a strong one and management have opined that the

ground reality is less severe than last year because of the better

preparedness and proactive approach to deal with contingencies .

• In fact the industrial production figures have depicted growth from last

year and retail inf lation has soothed.

• However , global rise in commodity prices would eventually be reflected

and so far managements have dealt with them through marginal price

hikes and cost optimization measures and hoping for the commodity

price inf lation to subside in next s ix months.

• Needless to say, the lockdowns in majority of states have resulted in

downgrades of FY22 GDP estimates, although earnings estimates haven’t

been revised lower .

• Among the major results declared this week, Godrej Consumer Products,

BASF, Granules India , Siemens, Apollo Tyres , Asian Paints, Pidil ite

Industries, UPL Ltd, Voltas, IEX, PolyCab India , Vedanta, Escorts,

Macrotech Developers , L&T posted decent or strong set of results while

Lupin, Cipla, Dr . Reddys, Indigo Paints are the ones which disappointed.

• While majority of management have outlined 2nd wave as a major risk

together with commodity inflation, they are hopeful of things looking up

in second half of the year .

ASHIKA GROUP

• Berger Paints: Tgt- 815• Chambal Fertilisers: Tgt- 304

1008, RAHEJA CENTRE, 214, NARIMAN POINT, MUMBAI-400 021, PH- 022 – 6611 1700, EXTN. - 704

WWW.ASHIKAGROUP.COM

ASHIKA GROUP

• Berger Paints is the second largest paint companies

in India with presence both in decorative and

industrial paint. The decorative paints contribute

80% to the annual topline. Berger paints commands

17% market share in the organized decorative

market paints category. With ~ 6 lakhs metric tonnes

of annual manufacturing capacity, Berger has

presence across all categories of Premium, Budget

and Economy products.

• It is believed that despite pandemic related

challenges, the long term growth story of decorative

paint remains intact with key growth drivers such as

shortening repainting cycle, rising aspirations and

urbanization level suggests a structural growth

story. Unlike industry leader, Berger Paints has high

revenue exposure from non-metros. Hence, it is

better positioned to cater to increased demand in

tier II , tier III cities where unorganized players have

had a significant hit due to supply issues.

Since Jan’21 the stock has witnessing

rangebound price action with prices taking

support around 700 levels for multiple

number of times. In the process the stock has

resulted in to form a bullish Symmetrical

Triangle formation. Hence the stock can be

bought with a price target of 815

CMP: Rs 749Target : Rs. 815 (+ 8.8%)


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• Chambal Ferti l isers & Chemicals Ltd is India‟s largest

private sector Urea manufacturer. Its three hi -tech

nitrogenous fertil izer plants are located at Gadepan,

District Kota, Rajasthan, with an instal led capacity of

~3.3 mtpa , sold under „Uttam Veer‟ brand, primarily in

North and West India. It also trades in complex

ferti l izers l ike DAP, MOP, NPK ferti l izers, crop protection

chemicals ( insecticides, fungicides & herbicides), seeds,

sulphur, micro-nutrients, complex fertil isers and city

compost etc.

• Chambal is India‟s largest private Urea manufacturer

with robust distribution network and has set -up a new

Urea plant to bridge structural demand supply gap.

Company is well -placed to reap the benefits of reforms

such as amendment in Modif ied NPS -II I , DBT of ferti l izer

subsidy and possible steps towards removing price

regulations on Urea in the long term. Company’s

leadership in urea and eff icient operational performance

with the commissioning of Gadepan 3 should support

consistent earnings growth.

ASHIKA GROUP

The stock had been grinding around the

support zone of 210-220 for the past couple

of weeks. The said support level coincides

with the upward sloping trendline since

Mar’20 onward and the previous resistance

turned support of Apr’18. Presently price has

witnessed a surge with a large volume

buildup. Hence the stock can be bought

with a price target of 304

CMP: Rs 271Target : Rs. 304 (+ 12.0%)


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ASHIKA GROUP


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ASHIKA GROUP

Broader trend in the

market continues to be

positive though the new

trading range for the Index

l ies within 33300-34700. On

the oscillator front it had

trading in overbought

condition for an extended

period of t ime, now with

the requisite correction

Index in well placed

maintain its elongated

rally. Immediate support

emerge from the 200dma

placed at 33375

Index had been witnessing

whipsaws for the past couple

of weeks though in technical

parlance the crucial support

level of 1300 remains

perfectly in place. However ,

breach of which might drag

the Index lower towards i ts

50DMA at 1200-1205 levels .


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• Industr ial production in the U.S. increased by less than

expected in the month of Apri l by 0.7 percent after

soaring by an upwardly revised 2.4 percent in March.

• First-time claims for U.S. unemployment benefits fell by

more than expected in the week ended May 8th to

473,000, a decrease of 34,000 from the previous week's

revised level of 507,000.

• Euro area industrial production rose 10.9 percent year-on-

year after a 1.8 percent fall in the previous month, which

was revised from 1.6 percent.

• Policymakers are looking forward to review the Eurozone

economic and inflation outlook, and the duration to

continue stimulus in the monetary policy session in June,

the minutes of the latest rate-setting session of the

European Central Bank showed Friday.

• Japan's leading index which measures the future

economic activity, grew to 103.2 in March from 98.9 in

February.

• Overall consumer prices in China were up 0.9 percent on

year in Apri l , shy of expectations for 1.0 percent and up

from 0.4 percent in March.

USA

Europe

Asia

ASHIKA GROUP


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On the daily time frame

consecutive bear candle

carrying lower high low

indicates of an extended

breather after past five sessions

up move (14461-14966) and it

seems that , breakout above

the upper band of

consolidation (15000) has been

delayed. However it seems that

the Index is unlikely to breach

the key support threshold of

14200 as it coincides with the

100 days EMA and the 61.8%

retracement (13596-15432)

ASHIKA GROUP


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The daily price action formed

consecutive bearing candle

with a lower high low signalling

corrective bias however it can

be expected that the index to

hold above the immediate

support area of 31500-32000 as

it coincides with the 61.8% of

preceding seven sessions up

move (30405-34287).

ASHIKA GROUP


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India will have to invest heavi ly in infrastructure in order to recover

from the economic havoc brought on by the coronavirus pandemic,

even if that means going in for deficit financing, according to a UN

expert . (BS)

At the beginning of 2021, when S&P Global Ratings forecast Indian

gross domestic product growth at 11% for the coming financial year,

the number looked eminently achievable. (BS)

Industr ial production was up 22.4 per cent in March on a low year-

on-year (YoY) base against a 3.4 per cent contraction in February, the

data released by the National Statistical Office showed. (BS)

A sharp rise in exports in Apri l is giving a hope that the ambitious

target of USD 400 bill ion merchandise shipments can be achieved

this year, Commerce and Industry Minister Piyush Goyal said. (BS)

Indian retai l inflat ion likely eased to a three-month low in Apri l on

softening prices for vegetables and other perishable foods, a Reuters

poll suggested, bringing the headline rate closer to the midpoint of

the Reserve Bank of India’s medium- term target . (BS)

Localised lockdowns, a semiconductor shortage, and a surge in

Covid-19 cases at factories have led to a slowdown in mobile phone

manufacturing and sales in Apri l-May, heads of several companies

told Business Standard. (BS)

ASHIKA GROUP


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Tata Consultancy Services has launched a cloud-based

subscription solution to help the media and publishing industry

transform customer experience and shift to subscription-based

order-to-cash processes for physical and digital content.

Cadila Healthcare said its wholly-owned Zydus Animal Health and

Investment Limited (ZAHL) has entered into a Business Transfer

Agreement with Zenex Animal Health India Private Limited to sell

its animal healthcare business for Rs 2,921 crore.

Hindustan Construction Company said it has in joint venture with

KEC International won a Rs 1,147 crore order from Chennai Metro

Rail . The stake of HCC in the JV is 51 per cent (Rs 585 crore) .

Lumax Group is investing Rs 250 crore in capital expenditure this

fiscal to set up an electronics plant at Bawal in Haryana and

augment capacity at the Sanand plant in Gujarat .

Dr Reddy's Lab has entered into a royalty-free, non-exclusive

voluntary licensing agreement with Eli Li l ly and Company for the

manufacture and commercialisation of Baricitinib in the country

for treatment of COVID19.

NBCC is in the race to acquire Jaypee Infratech under the

insolvency resolution process, have submitted revised bids and

improved their offers for financial creditors . According to sources,

NBCC and Suraksha group submitted their revised bids

ASHIKA GROUP


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• Solara : Tpg Growth Iv Sf Pte Ltd Sell 1336495 Shares @ Rs. 1557.26

• Coforge : Axis Long Term Equity Fund Buy 617284 Shares @ Rs. 3240

• Solara : Aditya Bir la Sun Life Flexi Cap Fund Buy 390000 Shares @ Rs.

1552.05; Classic Opportunit ies Fund Buy 257823 Shares @ Rs.

1552.05; Aditya Bir la Sun Life Mutual Fund Buy 194000 Shares @ Rs.

1552.05

• Reliance Infrastructu Ltd : Indusind Bank Ltd Client A/C Sell 3332875

Shares @ Rs. 49.16

• Insect ic ides (India) Limi : Insect ic ides India Limited Buy 264000 Shares

@ Rs. 544.74

• Reliance Infrastructu Ltd : Indusind Bank Ltd Client A/C Sell 7240127

Shares @ Rs. 49.83

• Astec : Godrej Agrovet Ltd Buy 200000 Shares @ Rs. 1199.76

• Sakthi Sugars Ltd. : Asset Reconstruct ion Company India Limited Sell

902389 Shares @ Rs. 16.18

• Cyient : Cyient Associate Stock Option Scheme 2021 Trust Buy 600000

Shares @ Rs. 769.97

• ---

• Yaari i Dig Integr Ser Ltd : Bnp Paribas Arbitrage Buy 1000000 Shares

@ Rs. 91.2; Morgan Stanley Asia (Singapore) Pte. - Odi Buy 950000

Shares @ Rs. 90.9

• Rossell India Limited : Elara India Opportunit ies Fund Limited Sell

300000 Shares @ Rs. 126.47; Elara India Opportunit ies Fund Limited

Sell 215000 Shares @ Rs. 127.88

10.05.21

13.05.21

12.05.21

11.05.21

14.05.21

ASHIKA GROUP


WWW.ASHIKAGROUP.COM

Asian Paints : Net Revenue at Rs. 6651 .4 crore, +43 .5% YoY and -2.0% QoQ.

EBITDA at Rs. 1318 .3 crore, +53 .4% YoY and -26.3% QoQ. EBITDA Margin at

19.8%, +128 bps YoY -652 bps QoQ. Net Profi t at Rs. 869.9 crore . +81 .1%

YoY and -31 .3% QoQ.

Larsen & Toubro Ltd . : Net Revenue at Rs. 48087.9 crore, +8.7% YoY and

+35.1% QoQ. EBITDA at Rs. 8205.4 crore, +16.3% YoY and +35.3% QoQ.

EBITDA Margin at 17.1%, +111 bps YoY and +2 bps QoQ. Net Profi t at Rs.

3820.2 crore, +11 .4% YoY and +44.2% QoQ.

Pidi l i te Industr ies : Net Revenue at Rs. 2235.5 crore, +44.7% YoY and -2.8%

QoQ. EBITDA at Rs . 460.8 crore, +53 . 1% YoY and -28. 1% QoQ. EBITDA

Margin at 20.6%, +113 bps YoY and -726 bps QoQ. Net Profi t at Rs. 307.4

crore, +96.4% YoY and -31 .1% QoQ.

Dr . Reddys Laboratories Ltd . : Net Revenue at Rs. 4768.2 crore, +7.2% YoY

and -3.5% QoQ. EBITDA at Rs. 1053 .2 crore, +11% YoY and +95.3% QoQ.

EBITDA Margin at 22.1%, +75 bps YoY and +1118 bps QoQ. Net Profi t at Rs.

557.3 crore, -28.7% YoY and +1897.5% QoQ.

Cipla Ltd . : Net Revenue at Rs. 4606.5 crore, +5 .3% YoY and -10.9% QoQ.

EBITDA at Rs. 796.2 crore, +25.7% YoY and -35.3% QoQ. EBITDA Margin at

17.3%, +281 bps YoY and +-653 bps QoQ. Net Profit at Rs. 411 .5 crore,

+72.5% YoY and -45.2% QoQ.

Lupin: Net Revenue at Rs. 3783.1 crore , - 1 .6% YoY and -5.8% QoQ. EBITDA

at Rs. 707.6 crore, +34.7% YoY and -9.1% QoQ. EBITDA Margin at 18.7%,

+504 bps YoY and +-68 bps QoQ. Net Profit at Rs. 464.4 crore, +18.7% YoY

and +5.2% QoQ.

UPL: Net Revenue at Rs. 12796.0 crore, +14 .9% YoY and +40.2% QoQ.

EBITDA at Rs. 2651 .0 crore, +39.2% YoY and +20.4% QoQ. EBITDA Margin

at 20.7%, +363 bps YoY and +-341 bps QoQ. Net Profi t at Rs. 1361 .0 crore,

+73 .6% YoY and +44.2% QoQ.

ASHIKA GROUP


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ASHIKA GROUP

DATE FII CASH DII NET

10-May-21

11-May-21

12-May-21

13-May-21

14-May-21

Total

MTD

YTD


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ASHIKA GROUP


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Indian Rupee remained

subdued this week. With

possible RBI intervention

around 73.30 levels, rupee

has been facing difficulty to

rise further. The currency is

l ikely to remain range

bound move next week as

well unless any wild swings

are seen in dollar globally.

ASHIKA GROUP


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ASHIKA GROUP


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The Index has been on a

significant uptrend with

successive higher high

formation. Since mid

Aug’20 the Index has been

trading decisively within

the upward sloping

channel l ine. However the

elevated support for the

Index now lies around 190-

195, breach of which might

distort the existing

uptrend and corrective

decline towards the

200DMA at 175-177 can be

seen.

Prices came under pressure

during the week as a broader

surge in commodity prices,

labor shortage and much

stronger-than-expected

consumer prices data this

week have stoked inflation

concerns that could force the

U.S. Federal Reserve to raise

interest rates. Raising rates

typically boosts the U.S.

dollar , which in turn

pressures oil prices because

it makes crude more

expensive for holders of other

currencies

ASHIKA GROUP


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CORPORATE ACTION

ASHIKA GROUP


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OFSS 17-May-21 3694.5 200.00 5.41

CAPPL 18-May-21 591.1 1.50 0.25

COFORGE 18-May-21 3348.8 13.00 0.39

SUNDRMFAST 18-May-21 680.3 3.40 0.50

VISAKAIND 18-May-21 615.2 10.00 1.63

IRBINVIT 19-May-21 55.7 0.00

POWERINDIA 19-May-21 1709.7 2.00 0.12

MINDSPACE 20-May-21 290.0 0.00

KENNAMET 24-May-21 1163.9 20.00 1.72

WELSPUNIND 24-May-21 101.3 0.15 0.15

AVANTEL 27-May-21 427.7 4.00 0.94

CIGNITI 27-May-21 376.0 2.50 0.66

JMFINANCIL 28-May-21 79.3 0.50 0.63

TATACOFFEE 28-May-21 160.5 1.50 0.93

HDFC 31-May-21 2421.8 23.00 0.95

INFY 31-May-21 1316.8 15.00 1.14

HUHTAMAKI 9-Jun-21 269.9 3.00 1.11

RALLIS 9-Jun-21 311.7 3.00 0.96

ASIANPAINT 10-Jun-21 2773.6 14.50 0.52

NAM-INDIA 10-Jun-21 341.5 5.00 1.46

TATACONSUM 10-Jun-21 645.1 4.05 0.63

VTMLTD 10-Jun-21 25.1 0.60 2.40

HINDUNILVR 14-Jun-21 2376.8 17.00 0.72

TATACHEM 14-Jun-21 702.7 10.00 1.42

LINDEINDIA 16-Jun-21 1719.5 3.00 0.17

SRTRANSFIN 16-Jun-21 1327.4 6.00 0.45

TATAINVEST 16-Jun-21 1067.8 24.00 2.25

KANSAINER 17-Jun-21 555.1 4.00 0.72

TATAPOWER 17-Jun-21 101.5 1.55 1.53

TATASTEEL 17-Jun-21 1132.1 25.00 2.21

SUPREMEIND 21-Jun-21 2122.3 17.00 0.80

BEPL 22-Jun-21 155.4 1.00 0.64

SUPPETRO 25-Jun-21 700.8 12.50 1.78

HAPPSTMNDS 29-Jun-21 728.8 3.00 0.41

HDFCLIFE 30-Jun-21 670.8 2.02 0.30

VAIBHAVGBL 30-Jun-21 855.8 1.50 0.18

ASTEC - 1257.5 1.50 0.12

ATUL - 8201.6 20.00 0.24

BAJAJ-AUTO - 3848.4 140.00 3.64

BAJAJFINSV - 10968.1 3.00 0.03

BAJAJHLDNG - 3500.4 40.00 1.14

BAJFINANCE - 5328.0 10.00 0.19

BASF - 2466.6 10.00 0.41

BLUEDART - 5241.0 15.00 0.29

CARBORUNIV - 567.6 1.50 0.26

CHOLAFIN - 526.6 0.70 0.13

CHOLAHLDNG - 565.2 0.55 0.10

COROMANDEL - 768.6 6.00 0.78

DCMSHRIRAM - 677.8 3.80 0.56

DWARKESH - 51.1 1.25 2.45

GODREJAGRO - 528.8 8.00 1.51

GRANULES - 321.7 0.75 0.23

GRINDWELL - 1209.7 9.50 0.79

HEROMOTOCO - 2811.0 35.00 1.25

HIL - 3747.2 25.00 0.67

HSIL - 199.5 4.00 2.01

ICRA - 3184.9 27.00 0.85

KAYCEEI - 2950.0 30.00 1.02

M&MFIN - 151.1 0.80 0.53

MAHEPC - 140.9 1.20 0.85

MAHLOG - 534.9 2.50 0.47

MAHSCOOTER - 3380.5 50.00 1.48

NAVINFLUOR - 3142.5 6.00 0.19

ORIENTELEC - 280.3 1.25 0.45

PONNIERODE - 192.5 5.00 2.60

SAINTGOBAIN - 75.0 1.00 1.33

SESHAPAPER - 153.7 2.50 1.63

SHRIRAMCIT - 1574.6 13.00 0.83

SKFINDIA - 2313.3 14.50 0.63

SKYIND - 91.0 1.00 1.10

SWARAJENG - 1550.4 69.00 4.45

TECHM - 952.0 30.00 3.15

VSTIND - 3172.6 114.00 3.59

WENDT - 3345.3 20.00 0.60

ZYDUSWELL - 2145.0 5.00 0.23

CORPORATE ACTION

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Ashika Stock Broking Limited (“ASBL”) started its journey in the year 1994, and is presently offering a wide

bouquet of services to its valued clients including broking services, depository services and distributorship of

financial products (Mutual funds, IPO & Bonds). It became a “Research Entity” under SEBI (Research Analyst)

Regulations 2014 in the year of 2015 (Reg No. INH000000206).

ASBL is a wholly owned subsidiary of Ashika Global Securities (P) Ltd., a RBI registered non-deposit taking

NBFC Company. ASHIKA GROUP (details enumerated on our website www.ashikagroup.com) is an integrated

financial service provider inter alia engaged in the business of Investment Banking, Corporate Lending,

Commodity Broking, Debt Syndication & Other Advisory Services.

There were no significant and material disciplinary actions against ASBL taken by any regulatory authority

during last three years except routine matters.

The research recommendations and information are solely for the personal information of the authorized recipient and does not construe

to be an offer document or any investment, legal or taxation advice or solicitation of any action based upon it. This report is not for public

distribution or use by any person or entity, where such distribution, publication, availability or use would be contrary to law, regulation or

subject to any registration or licensing requirement. We will not treat recipients as customer by virtue of their receiving this report. The

report is based upon the information obtained from public sources that we consider reliable, but we do not guarantee its accuracy or

completeness. ASBL shall not be in anyways responsible for any loss or damage that may arise to any such person from any inadvertent

error in the information contained in this report. The recipients of this report should rely on their own investigations.

Research reports are being prepared and distributed by ASBL in the sole capacity of being a Research Analyst under SEBI (Research

Analyst) Regulations 2014. The following disclosures and disclaimer are an essential part of any Research Report so being distributed.

•ASBL or its associates, its Research Analysts (including their relatives) may have financial interest in the subject company(ies). And, the

said financial interest is not limited to having an open stock market position in /acting as advisor to /having a loan transaction with the

subject company(ies) apart from registration as clients.

•ASBL or its Research Analysts (including their relatives) do not have any actual / beneficial ownership of 1% or more of securities of the

subject company(ies) at the end of the month immediately preceding the date of publication of the source research report or date of the

concerned public appearance. However, ASBL's associates may have actual / beneficial ownership of 1% or more of securities of the

subject company(ies).

•ASBL or its Research Analysts (including their relatives) do not have any other material conflict of interest at the time of publication of the

source research report or date of the concerned public appearance. However, ASBL's associates might have an actual / potential conflict of

interest (other than ownership).

•ASBL or its associates may have received compensation for investment banking, merchant banking, brokerage services and for other

products and services from the subject companies during the preceding 12 months. However, ASBL or its associates or its Research

analysts (forming part of Research Desk) have not received any compensation or other benefits from the subject companies or third

parties in connection with the research report/ research recommendation. Moreover, Research Analysts have not received any

compensation from the companies mentioned in the research report/ recommendation in the past twelve months.

•The subject companies in the research report/ recommendation may be a client of or may have been a client of ASBL during the twelve

months preceding the date of concerned public appearance for investment banking/ merchant banking / brokerage services.

•ASBL or their Research Analysts have not managed or co–managed public offering of securities for the subject company(ies) in the past

twelve months. However, ASBL's associates may have managed or co–managed public offering of securities for the subject company(ies)

in the past twelve months.

•Research Analysts have not served as an officer, director or employee of the companies mentioned in the report/ recommendation.

•Neither ASBL nor its Research Analysts have been engaged in market making activity for the companies mentioned in the report /

recommendation.

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