j street volume 281

7/25/2019 J Street Volume 281

1/10

ex

rketView

1

mpanyUpdate 2

undthe

nomy 3

wledgeCorner 3

tualFund 4

mmodityCorner 5

exCorner 6

ortCard 7

rtTermCallStatus 8

or&Contributor

rgi Shah

cialContributors

eshTrivedi

tyaNahar

suggestions,feedback

queries

[email protected]

Market View:

The concern for slowing world economy

After the subprime crisis in 2008-09, the world is trying to recover from the financial deAlmost all important central banks of the world have used their arms to fight the financialock. But during this process an important element of over capacity in many sectors waddressed. Today with severe fall in oil and commodity prices coupled with over capacworld is grappling with bankruptcy of big corporate and countries as well. This situatilead to slow demand and no growth in the world economy. Economies like Russia, Brapan and China are taking all steps whatever they can to fight the existing problems. Sigslow growth are also coming from US economy and The Fed is likely to have status quorates in the month of March-April. What all this signals implies for Indian market? Yes

good analysts including Mr. Aditya Puri of HDFC Bank opined that early signals of recovvisible in the economy. If the situation in the world worsens from here on, the recoverdian market will also get delayed. Quarter three results are nothing less than disappointall are expecting business friendly budget with GST implementation. Today the only dIndian economy is Government expenditure. How far the government will be able to bthe fiscal side considering the expectations to raise the expenses will be an interesting pwatch in the next budget. The Finance Minister has assured the business community tbudget will not resort to sheer populism and will set road map for 2-3 years. Some imissues may be addressed in the budget will be removal of MAT in certain cases, rationaof TDS, resolving the problem of Retrospective Taxation and so on. It will be really a chfor the team of Finance Ministry to come out with proposals which may satisfy the aspiof large population and to fight the uncertainties and slow down in the global growth. To

the balance sheets of PSU banks will also be on the priority list. If the world economiclems gets stabilized and a normal monsoon in India, the corporate will have some earncovery. Till then, it is advisable to invest with caution and have an eye on the world ecoevents. It is interesting to note here that in a recent interview, RBI Governor Dr. Rajan hthat the problems in China are much bigger than the problems the world faced during thprime crisis.

Technically any rise above 7600/25000 will markets to higher levels and any fall below7240 may see new lower levels.

Kamal Jhaveri

MD- Jhaveri Securities

1 -

281ebruary,2016


2/10

2-

Company Basics

E Code 534312

E Symbol B

UITY ( in Cr.) 39.82

T.CAP ( in Cr.) 656.64

Financial Basics

FV () 10.00

EPS () (TTM) 7.65

P/E (x) (TTM) 21.54

P/BV (x) (TTM) 5.22

BETA 1.2363

RONW (%) 23.24

Share Holding Pattern

Holder's Name % Holdin

Foreign 24.74

Institutions 1.13

Promoters 42.78

Non Prom. 26.88

Public & Others 26.88

Government 0.00

mpany Overview

Educare is engaged in the business of providing education support and coaching services under the

me Mahesh Tutorials. It has its presence in 128 locations across 7 states and union territories of

estment rational

ian Coaching Sector has immense growth opportunitiesording to CRISIL estimates, the Indian coaching industry is expected to clock 17% CAGR (over FY201

m ` 40,187 cr to `75,629 cr. This growth would primarily be driven by rising disposable incomes, incr

usehold spend on education, infrastructural bottlenecks for formal education.

ographical vertical and diversification through various technology initiative

Gayatri Educational Society (Sri Gayatri). Sri Gayatri is one of the leading educational institution frmediate section (XI-XII) in the states of Telangana and Andhra Pradesh. Sri Gayatri currently has 53 co

ead across the two states, with over 33,500 Engineering, Medical aspirants. Through this arrangement, provide to Sri Gayatri, the expertise in teacher training, study material, technology aided teaching me

in development of digital content on the lines of Robomatee of high margin educational Digital Content : Robomate / Advance Robomate

digital content of Robomate received good response from the students after launching of Robomate inouraged by this, MT Educare started content selling to students who are not enrolled with the comine sales through E-Commerce portal also received good response during the year. Presently, productsool, science, commerce, CA and IIT segment are being sold. During the year, content digitization for ISE, Std. XI, XII and JEE Advanced Robomate was completed. Robomate has highest margin of 32-35%.

company has developed 4 pronged growth strategy -1) Focus on national level exams; 2) geographtical expansion expanding in North India, Karnataka, Andhra Pradesh and Telangana for scienc

mmerce; 3) Asset light college tie-up; and 4) Robomate technology driven growth.

uation : MTEDUCARE is trading at 160. We recommend Buy with target price of 230 , valuing

FY18E EPS of 9.24.The stock currently trades at 21.48 x of FY16E, 19.53x of FY17E and 17.75x of FY18

mpany Update : MT Educare Ltd.

281ebruary,2016


3/10

3-

eekly Market Recap :

The Reserve Bank of India kept its benchmark interest rate viz. the repo rate unchanged at 6.75% acheduled monetary policy review on 2 February 2016. The RBI kept the cash reserve ratio (CRR) unch

at 4% of net demand and time liability (NDTL).

The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose to 51.1 in Ja2016 from 49.1 in December 2015.

The seasonally adjusted Nikkei India services purchasing managers' index (PMI) hit a 19-month high at 5anuary 2016. The Services PMI rose from December's reading of 53.6.

arket Eye Week ahead :

On macro front, the government will announce data on gross domestic product (GDP) for Q3 Decembeon Monday, 8 February 2016. GDP rose 7.4% in Q2 September 2015. Data on industrial production for Dber 2015 will be announced by the government after market hours on Friday, 12 February 2016.

The government will also announce on Friday, 12 February 2016, data on inflation based on the consumendex (CPI) for January 2016. CPI inflation inched up to 5.61% in December 2015 from 5.41% in Novembe

On global front, Chinese stock markets remain closed next week for the Lunar New Year holiday.

Events / Factors to Watch

Mon: Q3 GDP data, AIA engineering, Gujarat gas, Inox wind, SRF, TV today network, Repco home finance earning

Tue: Bharat forge, Dr Reddys labs, Central bank,Hindalco, Aurobindo Pharma, PNB, Petronet LNG, SAIL earning

Wed: Ambuja Cements, Bata India, Cipla, Engineers India, GMR infra, Tata chemicals, REC, Finolex cables earnings

Thu: AB Nuvo, BHEL, Ashok Leyland, BEML, Coal India, Hero MotoCorp, ONGC, NCC, Natco Pharma, SBI, Rajesh arnings

Fri: CPI data for the month of January 2016, CEAT, IOC,HPCL,IDBI bank, Godrej Industr ies, Sun Pharma earnings

Sat: Bank of Baroda, Adani ports, Adani power,HDIL, Jindal steel earnings

Relative Strength Index - RSI'

A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine ovend oversold conditions of an asset. It is calculated using the following formula:

RSI = 100 - 100/(1 + RS*). When RSI goes above 70 or below 30, it indicates that a stock is overbought or oversold and vulne trend reversal.

round The World

281ebruary,2016

owledge Corner :


4/10

utual Fund Corner

4-

Source : - www.valueresearchon

nd Name

heme Name Birla Sun Life Tax Relief 96

C Birla Sun Life Asset Management Company Ltd

pe Tax Planning

egory Open-ended and Equity

nch Date March 1996

nd Manager Ajay Garg

Assetsn crore )

Rs. 2010.0 Cr. as on Dec 31, 2015

Top 10 Sector Break-Ups

Sector Weights Fund

Financial 24

Automobile 16

Services 13

HealthCare 8.

Engineering 8.

Technology 6.

Diversified 4.Chemicals 4.

FMCG 4.

Energy 2.

Composition (%)

Equity 97

Debt 2.

Cash -0

Risk Analysis

Volatility Measures

Standard Deviation 14

Sharpe Ratio 1

Beta 0

R-Squared 0Alpha 10

tory 2013 2014 2015 2016

(Rs) 86.06 128.10 137.07 129.25

l Return (%) 9.10 54.54 9.15 -5.71

ifty 50 2.34 23.15 13.21 -0.89

S&P BSE 100 4.72 19.07 10.63 -0.19

k (Fund/Category) 11/37 19/73 7/73 37/81

eek High (Rs) 86.06 128.12 143.72 0.00

Week Low (Rs) 68.31 78.21 126.69 0.00

Assets (Rs.Cr) 1401.31 1808.99 1947.66 0.00

ense Ratio (%) 1.97 2.42 2.32 2.38

Fund StyleInvestment StyleGrowth Blend Value

Large

Medi

Sma

281ebruary,2016

nd Performance v/s S&P CNX Nifty

FundCNX Nify

based to 10,000)


5/10

mmodity Corner

5-

DAMENTAL: Bullion soared this week adding more than 3%, while Gold scaled an eight month peak to settled at 27524 on Friday ased to buy jewelry in the marriage season besides protecting their investments in an asset, which enjoys safe haven status at times of chopkets. As a non-interest bearing asset, dollar-denominated gold becomes less attractive if US interest rates rise. Market players are firmindas dollar extended losses amid fading expectations of a US rate hike this year, boosting appeal of the precious metal - mainly kept goer. The dollar's retreat has been sparked by tepid US data, raising concerns over the strength of the economy and dampening expectationrate increase this year. Falling equity markets, both in developed and developing markets, credit and currency worries in China and monerom major central banks other than the US Federal Reserve have made gold look more attractive. Last week dollar dropped last week asomic data, together with increasing uncertainty in global economic outlook have weighed on hopes of another Fed funds rate hike in Maindex fell four out of five trading days last week, only recovered on Friday following a surprising decline the US unemployment rate. Non-fa

gained +151K in January, compared with market expectations of +192K and a downwardly revised +262K addition in December. Despite thing headline reading, details of the report suggest that US' job market has continued to grow. SPDR Gold Trust, the world's largest goldange-traded fund, also said its holdings rose 0.70 percent to 698.46 tonnes on Friday from 693.62 tonnes on Thursday. Meanwhile, Hedg

money managers boosted their bullish bet in COMEX gold to a three-month high in the week to Feb. 2, U.S. Commodity Futures Trading Cdata showed on Friday. In the week ahead, investors will be looking to Wednesdays testimony by Fed Chair Janet Yellen and Fridaysretail sales for further indications on the strength of the worlds largest economy. Fridays preliminary report on euro zone fourth quarter grbe closely watched amid heightened expectations for more easing by the European Central Bank in the coming months.OMMENDATION : BUY GOLD APR @ 27450 SL 27100 TGT 27850-28100. BUY SILVER MAR @ 35400 SL 34800 TGT 36000-36600.

DAMENTAL : In Base metals Complex Zinc and Lead was the best performer on weekly base and so far this year, gained near to 4 perce

week. Copper rebounded on Friday to see a weekly gain of 1.44% as the PBOC promised additional stimulus and support for the yuan ahe

ar Holiday, while Aluminium and Nickel dropped tracking weakness from LME Aluminium which fell 2.3 percent to end at $1,500, LME lLad

percent to close at $1,770, nickel tumbled 4.4 percent to $8,160. Copper set for a third consecutive week of gains as signs of stabilizatio

ket and a weaker dollar convinced traders to close short positions ahead of Lunar New Year holidays next week in China. Also the dollar

emained on track for weekly losses, as investors braced for US employment figures later in the session for the latest clues on the outlook

eral Reserve's monetary tightening path. The dollar index bounced back from a week of heavy losses after a mixed U.S. jobs report, which

in the unemployment rate to 4.9 percent, the lowest since February 2008, A stronger dollar makes commodities priced in the U.S. curren

nsive for buyers outside the United States. Copper and other base metals, however, are likely to bounce back when the Chinese return fr

. This week we may see some support in Aluminum prices as Noranda Aluminum Holding Corp, a producer of primary aluminum and rolle

coils, filed for Chapter 11 bankruptcy protection on Monday and said it will evaluate its various business operations.

OMMENDATION : SELL COPPER @ 320 SL 328 TGT 312-304. BUY ZINC @ 109 SL 106 TGT 113.50-119. SELL NICKEL @ 570 S 5

530. SELL ALUMINIUM @ 104 SL 106.50 TGT 100.50. BUY LEAD @ 114 SL 109 TGT 118-122.

DAMENTAL : In the week ahead, investors will be looking to Wednesdays testimony by Fed Chair Janet Yellen and Fridays data on U

s for further indications on the strength of the worlds largest economy. Fridays preliminary report on euro zone fourth quarter growth wil

ely watched amid heightened expectations for more easing by the ECB in the coming months. The dollar was boosted after the latest U.S

showed that while the economy added fewer than expected jobs in January, wage growth accelerated and the unemployment rate fell to a

low. The dollar index rose to 96.98 late Friday, off 3.5 month lows hit earlier in the session. A stronger dollar weigh on oil prices while press

amid uncertainty over a possible deal between the OPEC and other major producers to cut output in a bid to reduce one of the largest sup

ecades. Meanwhile Venezuelan Oil Minister was to hold talks with his Saudi counterpart Ali al-Naimi on Sunday. Saudi Arabia cut price

e exports to Europe and Asia on Thursday, in a move designed to defend market share, lowering expectations among traders that the king

illing to participate in a production cut. In its weekly supply report the EIA said crude inventories increased by 7.8mbls last week, maintainin

ommercial crude inventory of 502.7mbls.

COMMENDATION : SELL CRUDE OIL @ 2250 SL 2400 TGT 2060-1920.SELL NAT.GAS @ 148 SL ABV 170 TGT 132-120

BULLION

BASE METALS

ENERGY

281ebruary,2016


6/10

4 -

mmodity Corner

USD/INR

6-

rex Corner

EUR/INR

GBP/INR

JPY/INR

rket Eye Week ahead :

Last week USD-INR pair closed the week almost flat at 67.88.We expect US dollar to meet supply pressure onagainst the rupee. Utilize pullbacks in the USD/INR February contract to sell February futures in the range of 68.16The rupee failed to extend gains and weaken marginally against the US dollar, as oil importers dollar purchasegains from stronger domestic equities.

Level S2 S1 CP R1 R2 High Low Cl

SD/INR 67.60 67.32 68.07 68.35 68.82 68.54 67.79 67


PY/INR 56.63 55.19 57.40 58.84 59.61 58.16 55.95 58


BP/INR 97.10 95.60 98.36 99.86 101.12 99.61 96.85 98


UR/INR 74.38 72.79 75.24 76.83 77.69 76.10 73.65 75

rket Recap :

The domestic currency market opened at Rs 67.84against the dollar and registered an intraday highand low of 67.7950 and 67.86 respectively so faruring the day.

n the spot currency market, the Indian unit was lasteen at 67.82.

he U.S. dollar index, which measures the

greenback's strength against a trade-weightedbasket of six major currencies, rose 0.07% to 97.05.

n the week ahead, investors will be looking toWednesday's testimony by Fed Chair Janet Yellenand Friday's data on U.S. retail sales for further indi-cations on the strength of the world's largest econ-omy.

281ebruary,2016


7/10

Nifty finally closed the week at 7489.10 thereby showed a net fall of 74 points on week to week basis. Hoposition with a stop loss of 7400. Resistance is at 7610. Traders can buy above 7610 with stop loss or 745owards gap of 7674-7741 can happen if movement sustains above 7674. Selling will gain momentum on fall belo

Target remains 7330-7250 on downside.Macroeconomic data, Q3 results of India Inc., trend in global markets, investment by foreign portfolio investors (FPomestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement willrend on the bourses in the near term.

7-

treet Recommendations Report Card

Top Fundamental Stocks

Stocks Rec. Date CMP on Rec. CMP TargetAbsoluteReturn @

CMPSta

Educare 01/02/2016 164 160 230 -2% Bu

ware-Wall Ropes 28/12/2015 425 346 550 -19% Bu

spun syntax 23/11/2015 121 117 223 -4% Bu

co Pharma 02/11/2015 509 488 3183 -4% B

F 21/09/2015 1140 1136 1374 0% Bu

uwal ia contracts 24/08/2015 235 266 368 13% Bu

nite Computer20/07/2015 190 216 255 14% Bu

n Spinners Ltd . 06/07/2015 79 68 94 -14% Bu

nk of Baroda 01/06/2015 163 131 217 -20% Bu

bika Cotton Mil ls 18/05/2015 880 803 1149 -9% Bu

dbhavgineering Ltd.

04/05/2015 298 300 430 1% Bu

kar specialityemicals

16/03/2015 152 186 251 23% Bu

FL 16/02/2015 252 174 368 -31% Bu

Today Network 27/01/2015 222 290 337 31% Bu

M 12/01/2015 1238 1202 1452 -3% Bu

vells India 27/10/2014 274 304 346 11% Bu

C India Fin. Ser. 07/07/2014 39 36 45 -8% Bu

ani Port 05/07/2014 280 212 347 -24% Bu

snotimportantwhetheryouarerightorwrong,Itsabouthowmuchmoneyyoumakewhenyou'rerightandh

chyou

lose

when

you're

wrong.

281ebruary,2016


8/10

7-

treet Short Term Call Status

281ebruary,2016

DATE STOCK BUY/SELL

RANGE RANGE TRIGGERPRICE

TGT SL STATUSRE

14Dec15 YESBANK SELL 682 694 688.00 663.00 655 TA

15Dec15 JUBLFOOD SELL 1425 1450 1437.50 1400.00 1365 TA

16Dec15 PNB SELL 120 123 121.50 117.00 115 TA

17Dec15 KOTAKBANK BUY 686 697 691.50 709.00 712 TA

21Dec

15

ADANIPORT

SELL

258

262

260.00

252.00

270

SL

22Dec15 GLENMARK SELL 920 940 930.00 895.00 970 PB

23Dec15 CANBK SELL 236 242 239.00 231.00 248 TA

24Dec15AURO

PHARMABUY 862 878 870.00 900.00 845 TA

28Dec15HEROMO

TOCOSELL 2715 2665 2690.00 2590.00 2765 TA

29Dec

15

ARVIND

BUY

342

347

344.50

361.00

332

TA

30Dec15 APOLLOHSPT BUY 1448 1475 1461.50 1520.00 1400 TA

31Dec15 ZEEL BUY 423 431 427.00 440.00 414 SL

4Jan15 HAVELLS BUY 320 325 322.50 332.00 310 SL

5Jan15 CADILAHC SELL 320 325 322.50 308.00 335 TA

6Jan15 SBIN SELL 216 220 218.00 210.00 226 TA

7Jan

15

INFY

BUY

1060

1080

1070.00

1030.00

1120

TA

8Jan15 TECHM SELL 506 515 510.50 490.00 532 TA

11Jan16 MARUTI SELL 4200 4270 4235.00 4040.00 4300 TA

12Jan16 M&M SELL 1155 1177 1166.00 1100.00 1195 TA

13Jan16 FEDRALBANK SELL 47.7 48.7 48.20 46.20 51 TA

14Jan16 BANKINDIA SELL 93 97 95.00 90.00 100 TA

15Jan16 TATASTEEL SELL 237 241 239.00 230.00 245 TA


9/10

7-

treet Short Term Call Status

281ebruary,2016

DATE STOCK BUY/SELL

RANGE TRIGGERPRICE

TGT SL STATUS CMP %T

18Jan16 ACC SELL 1220 1242 1231.00 1190.00 1270 TA

19Jan16 HINDPETRO SELL 820 832 826.00 788.00 858 TA

20Jan16 BANKBARODA SELL 124 126 125.00 119.00 129 TA

21Jan16 ALBK SELL 49 51 50.00 47.80 53 SL

22Jan16 DRREDDY BUY 2730 2780 2755.00 2885.00 2680 TA

25Jan16 IGL BUY 564 578 571.00 595.00 550 TA

27Jan16 HAVELLS BUY 298 304 301.00 313.00 287 TA

28Jan16 HINDZINC SELL 158 162 160.00 152.00 166 TA

STAUTS

CALLS

RATIO

TA+PB 25 65.79

SL+EXIT 13 34.21

TOTAL 38 100.00

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 Expected return of 5-6%Risk- Reward ratio percentage wise depends on the volatility of stock Normally it stands ( 3 : 9)


10/10

281ebruary,2016

j street volume 281

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