REVIEW OF “SMART PLUS NEWS LETTER” No. 44 Dt. 6-7-2020 Plus News... · Mallcom (India) Ltd. is...

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DHOOM .......... DHAMAKA .......... Company Rate Weekly Diffrence Diffrence Recco. High (in Rs.) (in %) AMAZING Return Smart Gain For Smart Investors Company Rate Weekly Diffrence Diffrence Recco. High (in Rs.) (in %) REVIEW OF “SMART PLUS NEWS LETTER” No. 44 Dt. 6-7-2020 FLASH FLASH STOCK PICKS Sree Rayalseema 125 153 28 22.40 Siemens 1149 1173 24 2.09 Axis Bank 427 453 26 6.09 Cadila HC 366 366 0 0.00 Tasty Bites 13057 13500 443 3.39 Reliance Ind. 1787 1851 64 3.58 TCS 2199 2269 70 3.18 Navin Flurine 1679 1734 55 3.28 STOCK WATCH HDFC Life 572 585 13 2.27 Bharat Forge 357 375 18 5.04 Asian Paints 1697 1745 48 2.83 Infosys 762 794 32 4.20 ACC 1314 1328 14 1.07 Motilal Oswal 600 714 114 19.00 BASF India 1239 1264 25 2.02 HCL Technologies 579 591 12 2.07 Whirlpool 2159 2259 100 4.63 FUNDAMENTAL STOCKS Tata Motors 103 109 6 5.83 Adani Trasnmission 261 265 4 1.53 Ambuja Cement 195 201 6 3.08 Bharat Dynamic 375 427 52 13.87 UPL 444 456 12 2.70 Voltas 558 574 16 2.87 Havells India 579 597 18 3.11 TECHNICAL STOCKS HDFC 1878 1942 64 3.41 HDFC Bank 1074 1125 51 4.75 SBI 185 199 14 7.57 HUL 2172 2185 13 0.60 SMALL CAP STOCKS Sail 30 36 6 20.00 Meghmani Org. 53 58 5 9.43 Guj. Siddhi Cement 31 33 2 6.45 HUDCO 33 37 4 12.12 BEL 97 103 6 6.19 5FSB4Pę ITI 111 134 23 20.72 L&T Fin. 67 71 4 5.97 Tata Power 49 52 3 6.12 NOCIL 89 104 15 16.85 MID CAP STOCKS Granules India 208 226 18 8.65 Exide Ind. 153 157 4 2.61 GIC Housing Finance 95 100 5 5.26 Adani Enterprice 159 168 9 5.66 Radico Khaitan 368 378 10 2.72 Zee Enter 171 180 9 5.26 Century Pllywood 125 142 17 13.60 Deepak NItrite 478 531 53 11.09 /VDMFVT4Pę Finolex Cable 292 307 15 5.14 Steel STrips Wheels 433 442 9 2.08 Issue No. : 45 Vol. : 15 Page : 1 SMART PLUS News Letter (Weekly) Date : 13-7-2020 to 19-7-2020

Transcript of REVIEW OF “SMART PLUS NEWS LETTER” No. 44 Dt. 6-7-2020 Plus News... · Mallcom (India) Ltd. is...

Page 1: REVIEW OF “SMART PLUS NEWS LETTER” No. 44 Dt. 6-7-2020 Plus News... · Mallcom (India) Ltd. is India’s leading Personal Protective Equipment (PPE) brand. Hav-ing a presence

DHOOM..... .. . . . DHAMAKA.... ... . . .

Company Rate Weekly Diff rence Diff rence Recco. High (in Rs.) (in %)

AMAZING ReturnSmart Gain ForSmart Investors

Company Rate Weekly Diff rence Diff rence Recco. High (in Rs.) (in %)

REVIEW OF “SMART PLUS NEWS LETTER” No. 44 Dt. 6-7-2020

FLASH FLASH

STOCK PICKSSree Rayalseema 125 153 28 22.40Siemens 1149 1173 24 2.09Axis Bank 427 453 26 6.09Cadila HC 366 366 0 0.00Tasty Bites 13057 13500 443 3.39Reliance Ind. 1787 1851 64 3.58TCS 2199 2269 70 3.18Navin Flurine 1679 1734 55 3.28

STOCK WATCHHDFC Life 572 585 13 2.27Bharat Forge 357 375 18 5.04Asian Paints 1697 1745 48 2.83Infosys 762 794 32 4.20ACC 1314 1328 14 1.07Motilal Oswal 600 714 114 19.00BASF India 1239 1264 25 2.02HCL Technologies 579 591 12 2.07Whirlpool 2159 2259 100 4.63

FUNDAMENTAL STOCKSTata Motors 103 109 6 5.83Adani Trasnmission 261 265 4 1.53Ambuja Cement 195 201 6 3.08Bharat Dynamic 375 427 52 13.87UPL 444 456 12 2.70Voltas 558 574 16 2.87Havells India 579 597 18 3.11

TECHNICAL STOCKSHDFC 1878 1942 64 3.41HDFC Bank 1074 1125 51 4.75SBI 185 199 14 7.57HUL 2172 2185 13 0.60

SMALL CAP STOCKSSail 30 36 6 20.00Meghmani Org. 53 58 5 9.43Guj. Siddhi Cement 31 33 2 6.45HUDCO 33 37 4 12.12BEL 97 103 6 6.19Tera So 25 35 10 40.00ITI 111 134 23 20.72L&T Fin. 67 71 4 5.97Tata Power 49 52 3 6.12NOCIL 89 104 15 16.85

MID CAP STOCKSGranules India 208 226 18 8.65Exide Ind. 153 157 4 2.61GIC Housing Finance 95 100 5 5.26Adani Enterprice 159 168 9 5.66Radico Khaitan 368 378 10 2.72Zee Enter 171 180 9 5.26Century Pllywood 125 142 17 13.60Deepak NItrite 478 531 53 11.09Nucleus So 270 283 13 4.81Finolex Cable 292 307 15 5.14Steel STrips Wheels 433 442 9 2.08

Issue No. : 45Vol. : 15 Page : 1

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

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FII & DII Activity from 6-7-2020 to 10-7-2020

FII Activity DII ActivityDate Buy Value Sell Value Net Value

6-7-2020 4111.43 3763.08 348.357-7-2020 6580.15 5750.25 829.98-7-2020 5473.24 6468.11 -994.879-7-2020 4516.59 4303.82 212.7710-7-2020 2489.45 3520.45 -1031.00TOTAL 23170.86 23805.71 -634.85

Date Buy Value Sell Value Net Value

6-7-2020 4205.92 3942.45 263.477-7-2020 3512.24 4296.71 -784.478-7-2020 3721.81 4575.22 -853.419-7-2020 2872.1 3675.49 -803.3910-7-2020 2777.56 3208.77 -431.21TOTAL 17089.63 19698.64 -2609.01

Issue No. : 45Vol. : 15 Page : 2

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

Mallcom (India) Limited is provide Knitted gloves, Leather gloves and Textile garments, as well as other Personal Protective Equipments (PPE). Mallcom (India) Ltd. is India’s leading Personal Protective Equipment (PPE) brand. Hav-ing a presence in more than 50 countries in 6 continents, Mallcom has established itself as the integrated manufacturer and distributor for head to toe protection and is a valued partner for major importers in their brand name. All Mallcom products being delivered throughout the globe carry required certifi cations. Mallcom has captive test labs in each of its production units that manages standards and ensures quality. Generous investment in up gradation and innovation on the lab has helped Mallcom to innovate faster and customize products.

Mallcom has been a trusted player in the PPE industry globally for close to four decades. Mallcom produces numer-ous product categories covering head to toe such as helmets, face masks, garments, rainwear, leather gloves, nitrile gloves, and shoes. To provide a one-stop solution, Mallcom also deals in eyewear, ear protection, disposable synthetic gloves, and harness. Mallcom is one of the few companies to have an indigenous expertise with various raw materials such as textile, leather, rubber, and plastic. Mallcom’s manufacturing units are established over 500,000 sqft area at seven different locations, among which six of them are situated in the state of West Bengal. Mallcom has a capacity of producing over 1.5 million pieces of garments annually using fi nest craftsmanship and technical fabrics. The company produces more than 1 million pairs of leather gloves and 1.5 million+ pairs of nitrile gloves every month. The leather for our shoes and gloves is sourced internally from our tannery where the company has the ability to create treated leather also. Mallcom works with leading transporters across the globe. Across the Indian subcontinent and Middle-East, the fi rm sells exclusively through its 75+ trusted dealer network.

Currently it’s traded at 266 Rs with the M.cap of 165.98 Cr. It’s traded at 8.79 P/E. Promoter holds 73.79% without any pledged. ROCE is 19.57 % and ROE is 17.36 %. Due to COVID-19 PPE Demand are high and its industrial PPE segment will do well in longer term. It is potential to give 30% return in 2020.

MALLCOM (INDIA) LTDKanak kumar Patel, Patan, Gujarat, India, Email: [email protected]

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After grand success of our Website www.smartinvestment.in & Our Publications, Smart Investment Weekly (Gujarati & English), Smart Plus News Letter & Smart Bonanza (Gujarati Weekly), Smart In-vestment proudly announces launch of DOW wherein subscribers to this service will be given through SMS/Email Breaking News and Other Buy / Sell Ideas which happen during the week i.e. during the interval of publication of our 2 issues.

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Stocks Reco Date Reco Price Recomm. High AfterADANI POWER 9th April 20 30.25 33.75-36 41.9BAJAJ FIN 9th April 20 2450 2550-2650 34920J K CEMENT 9th April 20 970 1075-1100 1492PRAJ IND 9th April 20 62 67-72 71.8STERLITE TECHNO 9th April 20 70 82-88 138.5L&T FIN 16th April 20 56.5 63-67 74.75M&M FIN 16th April 20 163 181-185 212.7EID PARRY 20th April 20 147.5 165-175 295.8LAURUS LAB 21st April 20 423 445-460 603.85ALEMBIC PHARMA 21st April 20 630 685-700 983.15BAJAJFINSERV 23rd April 20 4730 5150-5300 Stop lossEID PARRY 8th May 20 156 175 295.8ADVANCED ENZYMES 15th May 20 160 185-190 Stop lossGRANULES 19th May 20 164.5 190-200 240LAURUS LABS 19th May 20 438 490-525 603.8CHEMBOND CHEMICALS 20th May 20 171 200 Stop lossPLASTIBLEND India 1st June 20 160 190-200 190 achievedMoldtech Techno 3rd June 20 41 55-60 45.5KALPATARU POWER 5th June 20 218 245 Exit at 215MOIL 5th June 20 141 165 Book pro t at 154TALBROS AUTO 5th June 20 101 120-125 Exit at 100IBULLS HSG FIN 10th June 20 152.5 175 263.45Rain Industries 18th June 20 76 85 102MIDHANI 18th June 20 210 227-235 230

Performance of our last Recommendation

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Issue No. : 45Vol. : 15 Page : 4

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

Hindustan Aeronautics Limited (CMP 942.40)(Script Info: 541154/INE066F01012)

“Make in India” for self reliance in defence production is the spectacular transformation in the Indian defence sector which was brought by the powerful package- Atmanirbhar Bharat hiking the FDI limit from 49 percent to 74 percent. We thank our honorable Prime minister of the nation Shri. Narendra modi and honorable defence minister Shri. Rajnath Singh who has approved Rs.38900 crore deal with Russia to buy MIG-29 fi ghter jets, upgrading over 50 MIG-29s, procuring Su-30 MKI from HAL and for indigenously developing advanced missile, rocket systems amid tension with neighboring countries at the Line of Actual Control (LAC) which will in turn upgrade the armed forces to further strengthen Indian Air force’s fi ghter jet portfolio and missile systems. The company enjoys huge order bookings worth of Rs. 59832 crore as on Nov 2019. Recently, The government will spend around Rs. 10730 crore for procuring 12 Su-30 MKI aircraft from HAL as part of defence portfolio build which adds to its order booking. Hindustan Aeronautics Limited (HAL) – India’s biggest defence company engaged in carrying out design, development, manu-facture, repair and overhaul of aircraft, helicopter, engines and related systems like avionics, instruments and accessories primarily serving Indian defence programme. The company also manufactures the structural parts of various satellite launch vehicles of the ISRO. HAL aspires to achieve operational excellence and would strive towards realizing India’s long cherished dream of self reliance in Aerospace & Defence by catalyzing itself through PM’s vision of “make in India” The company intend to expand the operations through partnerships and collaborations, enhancing customer satisfaction by diversifying further into the civil aircraft for both manufacturing and servicing opportunities. The company tends to develop inhouse capabilities to design and develop specialized products by optimizing operations to become a lead integreator of aircraft platforms by enhancing indignestation to ensure higher indigenous content in the products.The company aims to enhance their export contribution focusing on becoming a 4.0 enabled company. The Government of India holds majority stake of 89.97% as on march 2020. The company posts strong yearly profi ts in FY 2019-20. The consolidated total income in the year was Rs. 218.15 billion (USD 2.88 billion) and net profi t was Rs. 28.97 billion. These fi gures represented year-on year increases of 7% and 22% respectively. Hal attributed strong profi ts in FY 2019-20 to prime programmes including Dhruv Advanced Light Helicopter (ALH) and Tejas light combat Aircraft (LCA). The prospective fi rm anticipates new orders for 83 LCAs and 15 LCHs. The company has achieved export sales of Rs.40504 lakh. The major exports include supply of one Do-228 aircraft to Seychelles People Defence forces, Structural work packages, Forgings, castings and rolled rings to maor aerospace OEMs and Repairables, Spares and services to foreign aircraft operators/ In FY 2018-19, HAL has recorded the highest ever turnover of Rs. 19704.55 crore which is 7.8% increase from the previous year Rs. 18283.86 crore. The profi t after Tax saw a growth of 12% from Rs. 3239,85 crore to Rs. 3627.64 crore while the profi t after tax (PAT) increased by 14.8% from Rs. 1987.42 crore to Rs. 2282.44 crore. Net sales at Rs. 10322.94 crore in march 2020 was hiked by 2.77% from Rs. 10044.57 crore in march 2019. Quarterly net profi t in Q4 2020 was at Rs. 1241.11 crore which got elevated by 5.42%. from Rs.1177.29 crore in march 2019. EBITDA stands at Rs.2654.24 crore in march 2020 up 1.62% from Rs. 2611.84 crore in march 2019. Hindustan Aeronautics Limited EPS has increased to Rs. 37.12 in march 2020 from Rs. 35.21 in march 2019. In coronovirus pandemic, HAL has produced and handed over more than 300 aerosol boxes that act as an insulator between the doctor and the patient to various state governments, as part of its fi ght against COVID-19. It is said that the transparent box acts as an insulator between the doctor and patient and it can signifi cantly reduce the possibility of COVID-19 transmission to doctors and nurses treating cornavirus patients. These boxes are produced at various divisions of HAL across the country. The results are more appreciating and the company tends to cater more hosipitals and state in this hour of need. Moving towards the prospective Future ahead, HAL is in robust position to expand its operations. This spectrum of functioning is linked to several programmes that are transitioning from development to production. These programmes include the light combat Helicopter (LCH), light Utility Helicopter (LUH) and the HTT-40 basic trainer aircraft. By 2025, we expect India to be the third largest aviation market with a demand forcast for over 2000new aircraft in the next two decades, a majority of these being single aisle planes. The company with low debt increasing revenue every quarter for past three quarters and good improvement in annual profi ts for last two years. High dividends with rising dividend yield for last fi ve years and the best PSU fi rm with zero promoter pledge. The company’s future high value order booking enriches the fi rm’s profi tability and makes Investors to feel secured on the investment that they make in HAL being a fi nancially sound defence based PSU stock which has great potential to reap huge returns in the long run.

EVERGREEN STOCK INVESTOR Mr. Mahesh Nathan : Pune- Maharashtra : [email protected]

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Issue No. : 45Vol. : 15 Page : 5

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

Arunkumar : [email protected] WEEK TRADING STRATEGY

Next week Trading Strategy. Next week 13 July to 18 July Trading Strategy.

SOME TRADING IDEA OF NEXT WEEK.INDEX... BUY NIFTY FUT ABOVE 10820 TGT 10920-11030 SL 10740 SELL NIFTY FUT BELOW 10750 TGT 10640-10530 SL 10835 BUY BANKNIFTY FUT ABOVE 22700 TGT 23120-23500 SL 22300 SELL BANK NIFTY FUT BELOW 22500 TGT 22050-21800 SL 22930FUTURE... BUY SBI BK FUT ABOVE 197 TGT 203-208 SL 194 SELL BAJAJFIN BELOW 3300 TGT 3245-3180 SL 3354 BUY DLF FUT ABOVE 148 TGT 153-156 SL 144 SELL BAJAJ AUTO FUT BELOW 2880 TGT 2838-2800 SL 2914DELIVERY CALL BUY SUNTV ABOVE 390 TGT 410-422 SL 376 BUY HDIL ABOVE 3.30 TGT 4.50-5.30 SL 2.60

Global markets turns vola le&

Both side wild movement will be seen in the month of July

To know which stock will outperform in the market?

Join our FREE telegram channel

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Page 6: REVIEW OF “SMART PLUS NEWS LETTER” No. 44 Dt. 6-7-2020 Plus News... · Mallcom (India) Ltd. is India’s leading Personal Protective Equipment (PPE) brand. Hav-ing a presence

Choicest Scrips given here may see SOLID Upmove and rise in coming week….# HOT WEEKLY STOCK FUTURES:1) ONGC (78.55) Rs. 76 stoploss…It may touch 85 to 90…2) DLF (147.75) Rs. 144 stoploss..It may touch 162 to 171…3) Tata Steel (340) Rs. 332 stoploss..It may touch 351 to 360…4) Coal India (131.30) Rs. 128 stoploss..It may touch 144 to 162…5) PFC (83.60) Rs. 81 stoploss…It may touch 90 to 99…6) NMDC (84.30) Rs. 82 stoploss… It may touch 90 to 99…7) Federal Bank (54.20) Rs. 52 stoploss.. It may touch 59 to 63…8) Reliance (1884.50) Rs. 1864 stoploss….It may touch 1908 to 1935…9) IDFC First (27.10) Rs. 25.25 stoploss…. It may touch 30 to 34…10) Tata Motors (107.75) Rs. 104 stoploss..It may touch 117 to 126…# HOT DELIVERY BASED SHORT TERM STOCKS :1) Hind Copper (38.95) SL 35… With solid upmove it may touch 45 to 54…2) TTML (3.75) SL 3… Near term it may touch 5 to 6…3) R Power (3.90) SL 3… Near term it may touch 5 to 6 with upmove..4) South Bank (8) SL 7… Near term it may touch 10 to 12…5) IDFC (19.30) SL 17… Near term it may tocuh 23 to 27…6) MOIL (151.70) SL 140… Near term it may tocuh 171 to 189...7) Ujaas (7.35) SL 6… Near term it may touch to 9 to 12…8) Delta Corp (92.05) SL 89… Near term it may touch 99 to 108…9) KTK Bank (47.20) SL 43…. Moving towards 54 to 63 in near term…10) Bajaj Hind (6.15) SL 5… Strong upmove from 7 to 8 in near term…11) Educomp (3.52) SL 3… In short time it may touch 4 to 5… 12) IRB (122.05) SL 113… In short time it may touch 144 to 162…

Paras K.Ghelani (PG), Research Analyst (Email: [email protected])BAAJ NAJRE

Issue No. : 45Vol. : 15 Page : 6

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

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Nifty & Sensex Movement during the last week Nifty Open High Low Close Diff06-Jul-20 10723.85 10811.4 10695.1 10763.65 156.307-Jul-20 10802.85 10813.8 10689.7 10799.65 3608-Jul-20 10818.65 10847.85 10676.55 10705.75 -93.909-Jul-20 10755.55 10836.85 10733 10813.45 107.710-Jul-20 10764.1 10819.4 10713 10768.05 -45.4 Net Weekly Gains 160.7BSE Sensex Open High Low Close Diff06/07/2020 36,313.46 36,661.66 36,254.02 36,487.28 465.8607/07/2020 36,660.35 36,723.27 36,271.09 36,674.52 187.2408/07/2020 36,738.38 36,828.43 36,234.17 36,329.01 -345.5109/07/2020 36,450.69 36,806.30 36,422.30 36,737.69 408.6810/07/2020 36,555.13 36,748.89 36,401.11 36,594.33 -143.36 Net Weekly Gains 572.91

Issue No. : 45Vol. : 15 Page : 7

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

Page 8: REVIEW OF “SMART PLUS NEWS LETTER” No. 44 Dt. 6-7-2020 Plus News... · Mallcom (India) Ltd. is India’s leading Personal Protective Equipment (PPE) brand. Hav-ing a presence

Issue No. : 45Vol. : 15 Page : 8

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

* Disclaimer :- • Smart Investment will not be responsible / for any loss arising out of investment based on its recommendation. • Though, every care has been taken, we will not responsible for any errors / omissions • All disputes are subject to Ahmedabad jurisdiction

S3 S2 S1 CLOSE R1 R2 R3Nifty 10334 10447 10607 10768 10893 11036 11175Sensex 35109 35595 36110 36594 36950 37415 37846

Jatin Sanghavi (www.jatinsanghavi.com)

HAS THE RALLY FOUND ITS RESISTANCE ? :- After witnessing a stupendous run of almost 3300 points (i.e. 44%) from a Nifty low of 7500, the current Rally nally seems to have found its Resistance. After overcoming a plethora of Resistances in the form of Bearish Island, Bearish Gap, 200 Weekly MA, 61.8% Retracement, the Nifty seems to have found its match in the form of Resistance zone of 10751-10827 which is a result of the con uence of Weekly Bearish Gap and the critical 200dma. Small body candles for the entire week, exactly in the Resistance zone, suggest diffi culty in crossing the Resistance zone. This week seems to be a critical one as it will decide further course of action for the Nifty. A break of Nifty 10631 will open the doors to test the higher bottom at 10194. A downward break of 10194 can pull down the Nifty to Support zone of 9700-9600.

CANDLESTICK STUDY :- On the daily charts, both the indices have formed a Doji. On Thursday, a Bullish Harami was completed but it had little signi cance as it had occurred at the top. Also each day of the week formed small body candles which have little signi cance. On the weekly timeframe, both Sensex and Nifty have formed a small White body Spinning Top. Since the shadows are very small, it can even be classi ed as a Star formation. This formation can have bearish implications if we have con rmatory black body candle next week. Thus candlestick analysis suggests a neutral to bearish bias in the near term.

10751-10884 – STRONG R-ZONE :- After overcoming strong hurdles in the form of Bearish Island, Bearish Gap, 200 Weekly MA and the critical 61.8% Retracement, both the indices nally seems to have found their match in the form of strong Resistance zone formed between Sensex 36950-37011 and Nifty 10751-10884. The above zone is a result of con uence between the Weekly Bearish Gap and the critical 200dma (Sensex - 36963 and Nifty – 10884). Sensex 36950-37011 and Nifty 10751-10827 constitute the critical Weekly Bearish Gap.

BULLISH GAPS AS SUPPORT :- Indices have immediate support in the form of daily as well as weekly Bullish Gap between Sensex 36234-36110 and Nifty 10676-10631. A bearish break of this Bullish Gap, can take the indices down to test the higher bottom at Sensex 34499 and Nifty 10194. A break of this higher bottom, can take the indices further down towards the Bullish Gap on Weekly/Daily timeframe between Nifty 9706-9598.

BULLISH ISLAND CONTINUES :- Bullish Island still holds, whose failure point is below the Low of Opening White Body Marubuzo which is at Sensex 32348 and Nifty 9544. In case of a failure of Bullish Island, Market will go down to test the higher bottoms at Sensex 29968 / Nifty 8806.

TREND REMAINS BULLISH :- Both the indices are well above the Short term average of 20dma (Sensex – 35224 and Nifty – 10387) as well as Medium term average of 50dma (Sensex – 33443 and Nifty 9850). Both the indices continue to remain below the Long term average of 200dma (Sensex – 36963 and Nifty – 10884). Thus the Trend in the Short term as well as Medium term Timeframe is Bullish, whereas the Trend in the Long term Timeframe continues to remain Bearish.

OSCILLATORS SUGGEST BULLISH BIAS :- MACD as well as Price ROC are both positive and continue in Buy mode. RSI (67) suggests bullish momentum. Stochastic Oscillator %K (87) is below %D and hence in Sell mode. ADX (28) suggests UpTrend is strong. Directional Indicators continue in Buy mode as +DI continues above -DI. MFI (59) suggests Positive Money Flow. OBV continues in Buy mode. Buy signal in Bollinger Band continues. Thus majority of Oscillators are suggesting a Bullish bias.

OPTION ANALYSIS :- Options data for July series indicate highest Call Open Interest at the strike of 11500, followed by 11000. Highest Put build-up is at the strike of 10000, followed by 10500. Thus Options data suggest a range with Resistance @ 11000 & Support @ 10500.

DERIVATIVE STRATEGY :- It is suggested to construct a BULL Spread for SRF (CMP – 3894).It is looking Bullish upto at least 4200.Buy 3900 Call @ 155 & Sell 4200 Call @ Rs 55. (July Series Monthly)Cost of Construction is Rs 100. Hence Break-Even Point will be @ 4000.Max Pro t can be Rs 200. Max Loss can be Rs 100.

RUNNING OUT OF STEAM

THIS WEEKS RECOMMENDATIONS STOCK CMP SL Tgt-1 Tgt-2Buy SRF 3894 3814 4017 4145Buy NiiTTech 1592 1559 1642 1693Buy MCX 1324 1296 1367 1413Buy SBICards 703 689 725 749Buy SAiL 36 35 38 40

Page 9: REVIEW OF “SMART PLUS NEWS LETTER” No. 44 Dt. 6-7-2020 Plus News... · Mallcom (India) Ltd. is India’s leading Personal Protective Equipment (PPE) brand. Hav-ing a presence

Issue No. : 45Vol. : 15 Page : 9

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

By Vijaya Kittu M, GetPaidIndia.comUpdates on Select Stocks

The author feelsthat investors should keep a tab on the developments of their invested companies. Readers can reach him on WhatsApp at +91 98495 19188.

1. MARICO, in its recent update, explained the impact of COVID-19 on its sales with volumes having declined. The company,however, assured it is “steadily scaling up its volumes” as of June 2020. The more signi cant fear factor is that domestic sales (which are 77% of its total sales) will get severely impacted going forward. The company made some new launches, including Veggie clean, Mediker, House Protect, Travel Protect, and Saff ola Honey. Overall, its product portfolio is reasonably strong compared to its peers. The stock price outperformance over the BSE FMCG index re ects the premium it enjoys within the sector.

2. HDFC is contemplating to join with other investors to set up a real estate fund to nance stressed projects though it will not be an active player. The capital for this project would be sourced from the fresh capital that the company is planning to raise apart from using it for inorganic opportunities and investments in existing businesses. The fund would be ready to use in the latter part of FY.

3. Employees are relevant stakeholders for the business, and ICICI Bank is recognizing and rewarding them for the eff orts done during COVID-19 times. Reports say that the bank announced an 8% hike for employees of M1 and below grades who worked in customer-facing roles during the lockdown. The hike is applicable from July.Meanwhile, the company board approved Rs. 15,000 crore through Equity in one or more tranches.

4. JLR sales numbers continue to bleed, with retail sales down 42.4% in Q1FY21. June sales are down ~25%. China and North American sales are looking cheerful. Except forCastle Bromwich facility (that will reopen in August), almost all other plants have resumed manufacturing.Meanwhile, KVB and Tata Motors entered into a tie-up allowing existing and new customers of KVB to avail loans. Customers can get a 100% on-road nance with a 6-month holiday period.

5. Jewelry contributes 83% revenues of Titan Company. And because of the lockdown, the retail jewelry sales during May have come down by 80%. A 30% revenue drop was seen in June 2020 on a YoY basis. Stress is visible in other parts of the business. This hints that the Q1 numbers will be signi cantly impacted, and demand recovery will set the course for Q2 numbers.

6. Indian Oil Corporation (IOC) said it is on track for planned capital spending of Rs. 26,143 crores in the scal ending March 2021. It said the easing of lockdown helped it resume about 336 projects worth Rs. 1.04 lakh crores.

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Vol. : 15

SMART PLUS News LetterDate : 13-7-2020 to 19-7-2020

(Weekly)Page : 10 Issue No. : 45

NIFTY 50 Index closed the week (as on Friday) on positive note gaining 160.7.Points approx

Our Option Strategies

Weekly High: 10847.85 ; Weekly Low: 10676.55 ; Weekly Close: 10768.05Nifty 50 Index close on upside this week by approx. 160.7 points. Nifty traded in narrow range compared to last few weeks. On last day of the week there was some profi t booking noticed in index. Reliance again took a charge and lift nifty higher from lower level on last day of the week. Reliance is trading at new life time high. Profi t booking was seen in banking stocks on worry of ris-ing NPA. Some stock specifi c trade should be considered this week. In this week earning and monsoon are the factor which will help nifty to decide further direction. Risk reward is with seller at this level. Immediate resistance for nifty is around 10900 levels. Close above that can lead to next round of buying. Hedge your position completely as per your risk taking capacity. Nifty may fi nd support around 10600 levels. Nifty may remain between 10600 to 10900 this week.

NIFTY: VIEW (BEARISH) TRADE: EXPIRY 30 JULY 2020BUY 10700 PE @ 185.00 1 LOTSELL 10400PE @ 90.00 1 LOTMAX PROFIT : 15375/-MAX LOSS : 7125/-BREAKEVEN: 10605.

Abhijit Mehta. CERTIFIED FINANCIAL PLANNERCM +91 8690190477, [email protected]

CANARA BANK: VIEW (BULLISH)TRADE: EXPIRY 30 JULY 2020BUY 107.5 CE @ 6.00 1 LOTSELL 112.5 CE @ 4.00 1 LOTMAX PROFIT: 15000/-MAX LOSS: 10000/-BREAKEVEN: 109.5.

GODREJ CONSUMERVIEW (BULLISH)TRADE: EXPIRY 30 JULY 2020BUY 700 CE @ 26.00 1 LOTSELL 740 CE @ 12.00 1 LOTMAX PROFIT: 26000/-MAX LOSS: 14000/-BREAKEVEN: 714.

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NIFTY ANALYSIS

STOCK SCAN Chirag R Sanghvi (Certi ed Research Analyst) Mail: [email protected] ; Twitter:- @Chirag_90

*Disclosure:- • This presentation / newsletter / report is strictly for information and illustrative purposes only and should not be considered to be an offer, or solicitation of an offer, to buy or sell any securities or to enter into any Portfolio Management agreements. This presentation / newsletter/ report is prepared by Chirag R Sanghvi. Any dissemination, copying or circulation of this communication in any form is strictly prohibited. Neither me nor any of their respective affi liates or representatives make any express or implied representation or warranty as to the adequacy or accuracy of the statistical data or factual statement concerning India or its economy or make any representation as to the accuracy, completeness, reasonableness or suffi ciency of any of the information contained in the presentation / newsletter / report herein, or in the case of projections, as to their attainability or the accuracy or completeness of the assumptions from which they are derived, and it is expected each prospective investor will pursue its own independent due diligence. In preparing this presentation / newsletter / report, Chirag R Sanghvi is not liable for any loss or damage (direct or indirect) suffered as a result of relay upon any statements contained in, or any omission from this presentation/ newsletter / report and any such liability is expressly disclaimed.

Vol. : 15

SMART PLUS News LetterDate : 13-7-2020 to 19-7-2020

(Weekly)Page : 11 Issue No. : 45

After witnessing a Sideway trend in last week market has fi nally able to close above 10675 level which was acting as a good physiological support level on Hourly Chart from that level we have witness a upside move till 10800-10850 which was tested twice time in previous week and also acting as a resistance Now coming towards the Current Scenario, In upcoming week we saw good weekly closing above 10680 i.e. 10768.05. We might see upside of 11084 but on conditional basis so to achieve that level Nifty has to give close above 10850 on daily basis with high volume. But on contrary there is a crucial Support of 10675 and if we get closed below the support level on daily basis with high volume then we might witness 10350-10300 levels. Also Nifty is able to sustain above it’s 200 DMA. Support: 10500-10350 Resistance:- 11000-11050.

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Vol. : 15

SMART PLUSDate : 13-7-2020 to 19-7-2020 (Weekly)

Page : 12Issue No. : 45

N L

Fundamental StocksStock WatchMCX 1324.00Bharti Airtel 574.00Voltas 516.00ICICI Prud. 418.00United Spirits 636.00Bombay Burmah 1226.00Balkrishna Ind. 1275.00Linde India 696.00Nilkamal 1209.00Bajaj Auto 2995.00Hero Moto 2681.00L&T Info 2108.00`

Stock PicksITI 124.00Chola Invest 208.00IRB Infra 121.00Granules India 234.00Deepak Nitrite 155.00DLF 147.00Sobha Ltd. 236.00Adani Enter. 159.00Hindalco 164.00Tata Consumer 430.00CCL Prudcts 242.00Seamec 416.00

NIIT Techno 1593.00HUL 2224.00SBI 196.00TCS 2043.00Sun Pharma 494.00ICICI Bank 360.00Bandhan Bank 374.00Biocon 414.00Hind. Zinc 189.00HPCL 209.00Aurobindo Pharma 820.00Laurus Lab. 567.00

Technical Shares

Globus Spirits 135.00HDFC Life 592.00Navin Fluorine 1719.00Galaxy Surf. 1562.00SBI Cards 703.00Pidilite 1384.00Escorts 1137.00Reliance Ind. 1878.00Century Tex. 315.00Amar Raja Batt. 696.00Alkem Lab 2421.00SRF 3894.00

First Source 43.00Sail 36.00Karnataka Bank 47.00Meghmani Organics 56.00 A.B. Money 36.00Kamat Hotel 32.00Navkar Corp. 29.00STAR Cement 90.00Prism Cement 50.00Tata Motors 104.00Lamon Tree 24.00Jindal Steel 40.00Equitas 59.00

I.B. Housing Fin. 235.00GHCL 160.00Anjani Portland 137.00Ujjivan 256.00GIC RE 155.00Canara Bank 104.55Tata Coff ee 83.00Zee Enter. 170.00City Union Bank 132.00Bombay Dyeing 98.00PNC INfra 147.00Pioneer Distri. 122.00

Mid Cap Stocks Small Cap StocksIndiGo 1017.00Titan 961.00Bajaj Auto 2895.00IGL 407.00Bharat Forge 359.00ONGC 78.00NTPC 90.00UPL 438.00Infosys 781.00Tata Power 80.00PNB 35.00PVR 1047.00

Sell Stocks

All recommendation provided by Dilip K. Shah. He has not brought / sold any stock advised in this news paper during last one month Stoploos is useful for Short - Medium term investors only* Disclaimer :- • Smart Investment will not be responsible / for any loss arising out of investment based on its recommendation. • Though, every care has been taken, we will not responsible for any errors / omissions • All disputes are subject to Ahmedabad jurisdiction

This week all eyes on...July 14, Tuesday : Indian June 2020 Retail & Wholesale Infl ation Data

Q1 Results of Wipro & Century TextilesJuly 15, Wednesday : Reliance Ind. 43rd AGM & Bank of Japan Intrest Rate

Q1 Results of Infosys, Bandhan Bank, Federal Bank & L&T InfoJuly 16, Thursday : China June 2020 Industrial Production & ECB Meet

July 17, Friday : Q1 FY 21 HCL Techno & ICICI Gen. InsuranceJuly 18, Saturday : Q1 FY21 Results of HDFC Bank & M&M Fin.

Indina Markets likely to open with positive note on MondayMarkets to remain volatile & Stock specifi c during the weekAs more than 160 Quarterly numbers announcement

From corporate, result related stocks to remain in focus

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Issue No. : 45Vol. : 15 Page : 13

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

Cont...

Primary Market -DilipK. Shah

Primary Market witnesses strong movement due to bullish trend in Indian sharemarkets in June-JulyMainboard IPOs, NFOs, Rights Issues, ETF and NCDs issues queue up in this week

Rossari Biotech’s Mainboard Issue with price band of Rs 423 to Rs 425 will open on July 13

Yes Bank’s Rs.1500 crore FPO will open with fl oor price of Rs.12Bharat Bond ETF will enter the market on July 14 to raise Rs.3000 crore to Rs.14000 croreMuthoot Fin Corp’s NCDs issue gets robust response so will close on July 13How much subscrip on will Rossari Biotech’s IPO get and when and how lis ng will be?Ksolve’s NSE SME IPO gets listed with nominal premium but witnessed spurt a erwardsBonlon Ind’s BSE SME IPO with fi xed price of Rs.28 will get listed on July 13

Central Government to raise Rs.20,000 crore through stake sell in Coal India and IDBI BankChina-backed Hyderabad based Gland Pharma approaches SEBI to raise Rs.5000 crore

Are Yes Bank’s FPO, A.B.Fashion’s Rights issue and Bharat Bond ETF worth subscrip on?

The Indian sharemarket’s forward movement is continue despite CORONA pandemic, lock down and poor results in March 2020 quarter. Indian indices - Sensex and Nifty - have witnessed spurt of around 20% in last three months, of which 9 to 10% spurt has been witnessed in June only. As the rally has continued in July, Nifty has crossed 10,800 and Sensex has crossed 36,800 level.

The bullish trend in the secondary market has provided a lease of life to the primary market as a result of which mainboard issues, NCDs, ETF and FPO issues have queued up in the market.

Insight into the last week issues:-

SME Issues:-Ksolves listing :- The issue with fixed price of Rs.100 got listed at Rs.101.15 on July 6 and

then went up to Rs.106.90 and down to Rs.101.95 before closing at Rs.106.90. It crossed Rs.108 level on Friday.

Bonlon Industries :- Rs.10.52 crore IPO opened on June 30 and closed on July 3 with 1.36 times subscription. It will get listed on July 13.

NCDs issues:-Muthoot Finance :- The issue with base price of Rs.100 crore opened on June 29 and has

got more than two times subscription. So it may close on July 13 ahead of its scheduled closing date of July 17.

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Issue No. : 45Vol. : 15 Page : 14

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

yk MkÃíkknLkk Main - line IPO Ãkh yuf Lksh (Non SME)Sr Company Issue Open Dt. Issue size Off er price Min. Rs. 1,00,00 Rs. 2,00,000 Lis ng Lead Ra ng Remark Issue Close Dt. (Rs. Cr.) (Rs.) App. Limit Limit Manager (Out of 50)

1 Rossari 13-7-2020 Fresh Issue 11,76,470 423 to 425 35 Shares 210 Shares 455 Shares BSE Axis Bank

Biotech 15-7-2020 (Rs. : 50 Cr.) + (Rs. 14,875) (Rs. 89250) (Rs. 1,93,375) NSE ICICI Sec. (Book Building) OFS : 1,05,00,000 Eq.

38%Expensive(Apply for long term)

Cont...

Subscription gure of Muthoot Fincorp.

Category No. of Bond Issue Off ered/ Subscribed Reserved 10-7-2020Cat. 1 QIB 50,000 0.00xCat. 2 NII 2,50,000 2.95xCat. 3 HNI 7,00,000 1.88xTotal 10,00,000 2.06x

Lis ng Informa on ofKSOLVES NSE SME

IPONSE Symobol KSOLVESLis ng Date 6-7-2020Off er Price Rs. 100.00Lis ng Price Rs. 101.95Lis ng Day High Rs. 106.90Lis ng Day Low Rs. 101.95Lis ng Day Close Rs. 106.90

Shares Amt.35 14,87570 29,750105 44,625140 59,500175 74,375210 89,250

Rossari BiotechMain Line IPO

Lot size & Price for RetailShares Amt.245 1,04,125280 1,19,000315 1,33,875350 1,48,750385 1,63,625420 1,78,500455 1,93,375

This week’s Issues:-Rossari Biotech Mainboard Issue :- The primary market willwitness some move-

ment the next week. Mumbai-based specialty chemical company will raise Rs.493.49 crore by offering the shares with face value of Rs.2 at price of Rs.423 to Rs.425. The issue will open

on July 13 and close on July 15. It will get listed on BSE and NSE.When the face value of Rs.2 is converted in Rs.10, the price

goes up to Rs2115 to Rs.2125. The P/BV is 7.52 and P/E is 34. So the valuation is costlier. However, considering the fancy in chemical sector it can given good return in long term.

In the anchor book, institutional investors from India and abroad have invested Rs.149 crore. The shares have been allotted to SBI MF, ICICI Prud.MF, HDFC MF, White Oak, Malabar, Goldman Sachs and HSBC Life. More details are given in separate box.

Subscription :- It may get 8 to 10 times subscription in retail segment, while it may go up many times in HNI and QIB.

Allotment : July 20, 2020.Refund :- Fund will be unlocked on

July 21 and shares will be deposited on July 22.

IPOs Off er Price Premium Kostak Price Subject to

Name (Rs.) (Rs.) *Min. Appl. Sauda

Rossari 423 to 425 145 to 150 500 to 525 3200

ABF (RE) 55 17.85

(H : 23)

Yes Bank -- 0.50 to 0.75 500

(FPO) (Rs. 2 Lakh Application price Rs. 3000)Don’t subscribe IPO only on the basis of Grey premium.

Check the fundamentals of IPO Before Investing

Grey Markets Premium

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Issue No. : 45Vol. : 15 Page : 15

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

Subscrip on Figures of SME IPO (Dt. 19-6-20)IPO Lis ng Day SubscribedBonlon Industries BSE SME Issue Closed on 3-7-2020 1.36x

Lis ng on 13th July, Monday at BSE SME Pla orm

Tentative Timetable for Various IPOs Rossari Yes Bank Biotech (FPO)Issue Closes 15-7-2020 17-7-2020Finalisa on of Basis of Allotment 20-7-2020 22-7-2020Refund / Unblocking of Fund from ASBA 21-7-2020 23-7-2020Credit of Equity Shares to Demat A/c. 22-7-2020 24-7-2020Lis ng on BSE / NSE 23-7-2020 27-7-2020

Sr Company Issue Open Bond size F.Value Min. Listing Rating Recomm. Issue Close (Rs. Cr.) (Rs.) App.

29-6-2020 Base Size of Rs.100 Cr. 1,000/- 10 NCDs BSE Apply1. Muthoot to with an option to Retain (Rs.10,000) CRISIL A/Stable for Fincorp. 17-7-2020 Oversubscription up to Lead manager : BWR A+/Stable Long Term Rs. 60 Cr. Vivro Financial Services Aggregating Rs. 160 Cr.

Non Convertible Debenture (NCD) Issues at a Glance

Yes Bank’s Rs.1500 crore FPOwill open with fl oor price of Rs.12

Private sector bank’s FPO will enter the market on July 15 to raise Rs.15,000 crore. Shares worth Rs.200 crore have been reserved for employees. The floor price is Rs.12 and cap price is Rs.13. Anchor investor bidding will be on July 14. In this issue 50% is reserved for QIB, 15% for HNI and 35% for retail.

As per the reports, SBI is likely to invest Rs.1760 crore to retain its 48% stake. The anchor investors will invest Rs.4500 crore. American asset manager Tildon Park, LIC, HDFC AMC and HDFC Standard Life, ICICI Life Insurance, Max Live Insuarnace, ICICI Prudential are likely to invest in the issue.

Allotment will be on July 20, fund unblock on July 23 and share deposit will be on July 24. Listing will be on BSE and NSE on July 27. Despite crash in share price, it offers 50% discount.

Sr Company Issue Open Dt. Issue size Off er price Market Lis ng Lead Manager Recomm. Issue Close Dt. (Rs. Cr.) (Rs.) Lot 1 Yes Bank 15-7-2020 11,55,12,82,051 12 to 13 1000 Shares BSE Axis Bank, BoA Merrill Lynch, Apply Ltd. to Eq. Shares (F.V. 2) (Rs. 13000) NSE Ci group Global, HSBC, Kotak, for (FPO) 17-7-2020 (Rs. 14,984.62Cr.) SBI Capital, Yes Bank Ltd. Long Term* Rs. 1 Discount for Employee

yk MkóknLkk FPO Ãkh yuf Lksh

Listing :- It may get listed on July 23 around Rs.525 to Rs550.

PSU Disinvestment :- The gov-ernment is planning to raise Rs.20000 crore by stake sell in Coal India and IDBI Bank. If Coal India’s valuation doesn’t remain attractive, the government will buy back shares.

Gland Pharma : - China-backed injectable drugs manufacturer Gland Pharma is planning to raise Rs.5000 crore to Rs.6000 crore from the market. It will be the first company’s whose patent is with China’s Fosun Pharma. The merchant bankers are City, Kotak capital, Nomura and Haitong Sec.

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Issue No. : 45Vol. : 15 Page : 16

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

Aditya Birla Fashion and Retail (ABFRL) Right En tlement

Right Issue Opened 8-7-2020Right Issue Closed 22-7-2020Partly Paid Equity Shares 9,04,65,693 Eq. Shares Rs. 995 Cr.Off er Price Rs. 110Investors will have pay by July 22, 50% (Rs. 55 Per Share)Remaining Amount will be paidOn January 2021 25 % (Rs. 27.5 Per Share) On July 2021 25% on July 2021

Price Movement on 10-7-2020Open : 23.00 ; High : 24.95 ; Low : 17.95 ; Closed : 19.10

Recommenda on : Value Bet

Aditya Birla Fashion Right Issue Aditya Birla Fashion Rights Issue:- The biggest apparel company of India is coming up with Rs.995 crore Rights Issue on July 8 off ering 9.05 crore equity shares. The rst 50% will be paid at time of application and remaining 50% in two installments in January 2021 and July 2021.

Recommendation :- The stock has crumbled by more than 56% from 52 week high and is now trading around Rs.121. It has brands like Louis Phillipe, Van Hussen, Park England and Pantaloons in its portfolio. It will reduce debt by 25% and will also cut the cost. It may report EBITDA of Rs.600 crore in FY2020. It will be a beautiful gift for the investors.

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Issue No. : 45Vol. : 15 Page : 17

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

Bharat Bond ETF: Second tranche : April 2025 & April 2031 Issue Opens on July 14 & Closes on July 17

Off er 2 Variants 5 Year (Mature in April 2025) 10 Year (Mature on April 2031)Bharat Bond FoF : April 2025 Income over the target maturity pointBharat Bond FoF : April 2031 Income over the Index Yield : 2025 5.49% Indica ve Yield on 9 July 2020Index Yield : 2031 6.64% Indica ve Yield on 9 July 2020Fund Raise Between Rs. 3000 Cr. to 14000 Cr.Retail Investment in the 2025 Bond Minimum Rs. 1001 and in Mul ple of Rs. 1 therea er Maximum amount of Rs. 2,00,000Fund Manager Fund Manager Mr. Dhawal Dalal (Managing the Scheme Since Incep on)Co-Fund Manager: Mr. Gautam Kaul (Managing the Scheme Since Incep on)Name of the Trustee Edelweiss Trusteeship Company LimitedIssuers (April 2025) PFC, REC, Power Grid, Na onal Housing, Indian Oil, Na onal Bank for Agricluture, HPCL, NHPC, Export - Import Bank of India, Indian Railway Finance, NTPC, Nuclear Power Corpora onIssuers (April 2031) PFC, REC, Power Grid, NHAI, Nuclear Power, Indian Railway Finance, HUDCO, NHPC

Bharat Bond ETF will enter the market on July 14 to raise Rs.3000 crore to Rs.14000 crore

Bharat Bond ETF :- Bharat Bond Exchange Traded Fund Tranche-2 is open-ing on July 14. It will be of two maturity period. The issue with 10 years maturity period will mature in April 2031 and ve year period will mature in April 2025. The bond will raise fund between Rs.3000 crore to Rs.14000 crore, which will be invested in public sector companies with AAA rating like PFC, REC, Power Grid in limit of 15%.

Total 25% shares are reserved for retail investors, while rest will go to QIB. The minimum application for 2025 bonds will be Rs.1001 and then after in mul-tiple of 1 with maximum investment of Rs.2 lakh.

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Issue No. : 45Vol. : 15 Page : 18

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

Grey Market MovementGrey Market unlocked with

New mainboard issue in the primary marketRossari Biotech premium, interest rates and

subject to counters witness movementABFRL RE share prices crumbled a er

witnessing premiums of 40%Yes Bank FPO interest rates counter

witnessed huge movementSudden jump in Rossari Bio IPOs Premium at Saturday eveningThe grey market has swung into movement after almost four months with Rossari Biotech

mainboard IPO.

Rossari Biotech The premiums touched Rs.45 on July 6, while interest deals took place around Rs.400.

However, on July 7, the premiums went up to Rs.95/100 and interest on minimum application went up to Rs.400, while subject to deals started at Rs.1400/1500. On July 8, interest remained stable at Rs.400 but premiums touched Rs.130 and subject to Rates went up to Rs.2700. Currently, the interest is stable at Rs.400, but premiums have crumbled to Rs.113/116 and

subject to rates have got up to Rs.3300/3500.

AB Fashion Rights IssueIt has witnessed a huge volatility. The deals have started on Right Entitlement platform

from July 8 at price of Rs.110 and also witnessed premiums of 40%. The RE value, which is difference between Intrinsic Value and Share Price, was Rs.23, which went up to Rs.32 and

low to Rs.15. On Friday, the RE price was Rs.17.85.

Yes BankThe minimum application interest rates are Rs.900 and the interest for Rs.2 lakh applica-

tion is Rs.2700.As per the grey market sources during the Saturday evening there was a big jump in the premium,

Kostak & Subject to price of Rossari Biotech IPO. Kostak prices of Yes Bank IPO also up from Rs. 2700 to 3000 for Rs. 2 Lakh application. Thoush kostak prices of Minimum application crashed from Rs. 900 to Rs. 500

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Otherside of Coin“ The averages cost of equity shares to the promoters is Rs. 4.16 & Rs. 4.17 and off er priced is Rs. 423 to 425“ Face value of Equity shares is Rs. 2 hence if it is converted in face value of Rs. 10 then offer price will be Rs. 2115 to

2125 per shares.“ It has issued bonus shares in the ratio of 6:5 in December 2015“ Top-5 Customers constituted 43.95% revenue.“ Companies do not have any long term agreement with customers.“ Its high working capital & labor intensive and hazardous segment.“ Company will not receive any proceeds from the off er for sale“ RONW & ROCE has gone down in FY20

Recommendation : At current offer price considering P/BV of 7.52 & PE of 33.75 issue appears overpriced. However looking to the steady & Strong financial performance, asset high model, huge expansion (i.e. 2.5x by FY21), diversi cation in New segment, leading in textile chemicals, wide customer base including MNCs, booster dose from government with incentive in export, its future looks bright, investors may apply for Long term.

Rossari Biotech Main Line IPOIssue Opens on 13th July & Closes on 15th JulyPrice Band Rs. 423 to 245 ; Lis ng on BSE / NSE

At Current off er price considering high P/BV & PE, issue appears overpricedLooking to the strong fundamentals, Asset light model,

diversifi ca on, huge expansionWide client base, Government trust, outlook seems bright

Investors may apply for long term in this IPOIncorporated in 2009, Rossari Biotech Ltd is a manufacturer of textiles specialty chemicals. It provides customized

solutions to the apparel, animal & poultry feed, and FMCG industries by off ering a diversi ed product portfolio. Rossari Biotech operates in 18 countries including India, Bangladesh, Vietnam, and Mauritius. As per the F&S Report published on 30th Sept 2019, it is the largest textile specialty chemical manufacturer in India. The business of the company can be classi ed into three main categories which are textile specialty chemicals; animal health & nutrition products; and home, personal care & performance chemicals. The company has 1,948 different products range under these three categories. Most of the products of the company are manufactured in-house. Rossari Biotech also has two R&D facili-ties in Silvassa and Mumbai locations to focus on new product development, formulations, and cost competitiveness. It has more than 194 distributors across India and 27 distributors spread in other 17 countries.

Par culars (Rs. Cr.) FY 18 FY-19 FY-20Total Revenue 300.43 517.12 603.82Pro t After Tax 25.40 45.68 65.23EPS 5.25 9.44 13.42RONW (%) 34.08 43.32 31.79

Financial Performance Consolidated BasisIssue Details • Issue Opens on 13th July & Closes on 15th July, 2020• Object of the issue : Re/Pre Payment of certain indebtedness

availed by the Company, Working Capital Requirment• Issue S ize : 1,16,76,470 Equity Shares (Fresh Equity :

11,76,470 = Rs. 50 Cr.) • OFS : 1,05,00,000 Eq. Shares• Face Value Rs. 2, Total Rs. 493.91 to 496.49 Cr. . • Offer price

Rs. 423 to 425 Per Share• Minimum Lot : 35 Shares Shares • Listing : BSE NSE Platform• BRLM’s : Axis Bank, ICICI Sec. • Registrar : Link Intime India Pvt. Ltd. • Company Management : Mr. Edward Menezes and Mr. Sunil Chari.• Pre Issue Promoter Holding : 95.06% • Issue Constitutes : 22.49% of the post issue paid up capital• Average of last 3 Yrs. EPS Rs. 10.73 & RONW 36.02% • Industry Peer Group PE Ratio : 30• Pre IPO Equity Capital Rs. : 10.15 Cr.Post IPO Eq. Capital Rs. 10.39 Cr.• Pre IPO P/BV Ratio : 7.52 (NAV : 56.48) • Post IPO asking P/E on Fully diluted equity : 33.75• BRLM’s performance : Total 31st issue from BRLM in last 3 Years. 17 Issues opened with premium & 14 issue opened

with Discount.

Issue No. : 45Vol. : 15 Page : 19

SMART PLUS N e w s L etter(Weekly)

Date : 13-7-2020 to 19-7-2020

Page 20: REVIEW OF “SMART PLUS NEWS LETTER” No. 44 Dt. 6-7-2020 Plus News... · Mallcom (India) Ltd. is India’s leading Personal Protective Equipment (PPE) brand. Hav-ing a presence

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Smart Investment Weekly 1 Year 2 Years 3 Years1. Gujarati Edition 1800 3200 45002. English Edition 1100 1850 2650

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