In the week gone by, global markets moved higher as investors weighed strong earnings, easing travel curbs and U.S. infrastructure spending against inflation risk that may lead to tighter monetary policy. The fact that the US markets didn't shook in spite of unexpectedly high inflation and the European markets shrugged off the inflation fears reflect the underlying strength of this global rally despite high valuations. The U.S. dollar headed for its best week in almost five months against major peers, amid bets for earlier Federal Reserve interest rate hikes after data this week showed the fastest U.S. inflation in three decades. China markets also rose supported by property giant Evergrande avoiding default again and hopes Beijing would give the broader sector support. Japan markets too closed high buoyed by expectations of a stable government and more fiscal stimulus after Prime Minister Fumio Kishida's ruling party held on to a majority in a parliamentary election.
Back at home, domestic markets moved higher amid gains across global markets. On the flip side, there is a concern over high valuations as well as global cues impacting FPI inflows. As per the monthly Economic Review prepared by the ministry, rapid vaccination and teeming festivities will push India's ongoing recovery resulting in narrowing of demand-supply mismatches and greater employment opportunities. The review also stated that armed with necessary macro and micro growth drivers, the stage is set for India's investment cycle to kickstart and catalyse its recovery towards becoming the fastest growing economy in the world. In another development, RBI has opened gilts to retail investors via new direct platform. Going forward, healthy quarterly earnings combined with production growth will keep investors` sentiments high. Besides, the movement in global markets as well as fluctuations in currency (especially in the dollar) and crude prices will be closely tracked.
On the commodity market front, CRB traded up marginally; closed above 250 levels. Most of the commodities prices improved despite a significant upside move in dollar index. The dollar was set for its best week in five months. Investors continued to bet that higher-than-expected inflation would prompt central banks to hike interest rates quicker than expected. Although easy monetary policy has given gold a boost thus far, its appeal may diminish if central banks start hiking interest rates. Gold and silver are likely to trade in a range of 48200-49700 and 65000-69000. Crude rally may see some pause. On MCX, 5600-5700 is a major support zone. Oil seeds are consolidating in a range and we can expect a marginal buy in short term. GDP Growth Annualized Prel and Inflation Rate of Japan, Employment Change and GfK Consumer Confidence of UK, GDP Growth Rate QoQ 2nd Est and YoY 2nd Est and Core Inflation Rate of Euro Area, Retail Sales of US, Core Inflation Rate and Inflation Rate Canada etc are some very important triggers scheduled this week.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBIregistered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
The views expressed are based solely on information available publicly available/internal data/ other reliable sources believed to be true.
SMC does not represent/ provide any warranty express or implied to the accuracy, contents or views expressed herein and investors are advised to independently evaluate the market conditions/risks involved before making any investment decision.
DISCLAIMER: This report is for informational purpose only and contains information, opinion, material obtained from reliable sources and every effort has been made to avoid errors and omissions and is not to be construed as an advice or an offer to act on views expressed therein or an offer to buy and/or sell any securities or related financial instruments, SMC, its employees and its group companies shall not be responsible and/or liable to anyone for any direct or consequential use of the contents thereof. Reproduction of the contents of this report in any form or by any means without prior written permission of the SMC is prohibited. Please note that we and our affiliates, officers, directors and employees, including person involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) may trade in this securities in ways different from those discussed in this report or (c) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instrument of the company (ies) discussed herein or may perform or seek to perform investment banking services for such Company (ies) or act as advisor or lender / borrower to such company (ies) or have other potential conflict of interest with respect of any recommendation and related information and opinions, All disputes shall be subject to the exclusive jurisdiction or Delhi High Court.
SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
The company's strong market position is supported by access to the latest technology and brand equity of its parent, diverse product portfolio, wide geographical reach and established track record of timely execution of projects.The business portfolio highly mirrors that of Siemens AG. The company will also maintain its strong financial performance, given its conservative financial policy and robust capital structure.Thus, it is expected that the stock will see a price target of Rs.2761 in 8 to 10 months time frame on a current P/BV of 8.58x and FY22E BVPS of Rs.321.82.
healthy project pipeline which will ensure sales momentum and healthy cash flow visibility over the near-to-midterm.
The company is doing well and according to the management, the momentum will continue for the company given the low- interest rate, strong brand recognition and market consolidation. Residential launches remain on track to hit the market in Borivali, Goregaon and Thane. Thus, it is expected that the stock will see a price target of Rs.1135 in 8 to 10 months’ time frame on current P/Bv of 3.58x and FY23 BVPS of Rs.317.16.
The stock closed at Rs. 4146.95 on12thNovember, 2021. It made a 52-week low at 1105.10on11thNovember,2020 and a 52-week high of 4390.00 on 19th October, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at 2863.78
Short term, medium term and long term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts. Apart from this, it is forming a “Bull Pennant” pattern on weekly charts, which is considered to be bullish. On the technical indicators front such as RSI and MACD are also suggesting buying for the stock. Therefore, one can buy in the range of 4050-4080 levels for the upside target of 4500-4600 levels with SL below 3870 levels. The
The stock closed at Rs 211.20 on 12th November, 2021. It made a 52-week low of 155.60 on 24th August, 2021 and a 52- week high of 274.30 on 08th January, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at 200.62.
As we can see on charts that stock was consolidated in the wide range of 160-220 levels with positive bias for six months and formed an “Inverse Head and Shoulder” pattern on weekly charts which is bullish in nature. Last week, stock tried to give the breakout of pattern but couldn’t hold the high levels, still managed to close in positive territory with positive bias so further upside is expected from current levels. Therefore, one can buy in the range of 205-208 levels for the upside target of 240-245 levels with SL below 195 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
SOURCE: RELIABLE SOFTWARE
Charts by Reliable software
Indian markets recovered sharply as bulls made a strong back in the week gone by. Nifty indices once again reclaimed 18100 levels as IT, reality and power stocks outshine the markets.From derivative front, call writers cover their short positions held at 18000 strike. On the other hand, put writers added hefty open interest at 18000 strike and holds maximum open interest of nearly 54 lakh shares.Implied volatility (IV) of calls closed at 14.14 % while that for put options closed at 14.99. The Nifty VIX for the week closed at 16.65%. PCR OI for the week closed at 1.04. Last week Nifty has manage to close above its 20 days exponential moving average on daily charts which points towards positive bias for upcoming sessions. We expect index to move towards 18250-18300 levels in upcoming sessions. On downside now 18000-17900 zone will likey to provide strong support to markets
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric futures (Dec) slipped to 5-week low and recovered last week due to good demand at lower prices. Now it is expected to trade towards 8000 levels with support at 7200. The downtrend looks limited as production of turmeric may be lower than expected due to lower area in Telengana and unseasonal rains. There is expectation of good export demand. In the first 6-months (Apr- Sep) of FY 2021/22, exports down 26% to 77250 tons Vs last year but still at par with 5-year average as prices have higher by 30% y/y throughout the year. Jeera futures (Dec) closed higher for the 4th consecutive weekand expected to trade in a range of 15550- 17000 levels with positive bias. Demand increased in both domestic, export front, and is supposed to increase further. This season jeera production in Syria and Turkey was limited due to bad weather, which increases the demand for Indian cumin. However, exports of jeera for Apr-Sep were down by 14% Y/Y at 1.39 lakh tonnes but expected improve in coming months. As the Cumin area in Gujarat, progresses the old stocks will be available in the market in large volumes. Dhaniya futures (Dec) traded positive last week due on improved physical demand and likely to trade higher towards 8750 levels if it breaks 8450. There is a strong support at 8000. Coriander sowing in Rajasthan and Gujarat as not picked yet. Exports has been down 12.7% during Apr-Sep period to 24500 tonnesVs 28000 tonnes last year but 11% higher compared to 5-year average. Late monsoon rains in Rajasthan and Madhya Pradesh will see good area under coriander crop in coming season.
Gold prices neared a five-month high, after strong U.S. consumer price data prompted a rush into the precious metal seen as a hedge against inflation. Gold rose and hit its highest level since mid-June, after data showed U.S. consumer prices rose at their fastest pace in 31 years in October, underscoring signs inflation could stay uncomfortably high well into 2022. Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of gold, which pays no interest. Gold has scaled new peaks over the past few sessions after major central banks indicated last week interest rates would remain low in the near term, with the Federal Reserve maintaining its stance that inflation was “transitory”. However, since then, Fed officials have raised concerns about longer-lasting inflation. Elsewhere, silver jumped to $25.390 per ounce, its highest since Aug. 6. U.S. producer prices increased solidly in October, driven by surging costs for gasoline and motor vehicle retailing, suggesting that high inflation could persist for a while amid tight global supply chains related to the pandemic. The dollar index soared to its highest since July 2020, pressuring bullion by increasing its cost to buyers holding other currencies. But the metal is still on track for its biggest weekly gain since May 7, after U.S. consumer prices recorded their sharpest one-year jump in 30 years last month. Ahead in the week, gold prices on MCX may trade in the range of 48500-50500 levels and on COMEX it may trade in the range of $1820-$1900. Silver on MCX may trade in the range of 66000-70200 levels whereas on COMEX it may trade in the range of $24.90-$26.10 with positive bias.
Soybean futures (Dec) closed in positive for the 3rd consecutive week as demand for soybean is good. It expects to trade towards 5800-6000 levels with some positive bias with support at 5300. Internationally prices have increased due to expectation of lower ending stocks in coming season. Peak arrival period in 2021 is delayed by about a month due to late withdrawal of monsoon. As per USDA November monthly report, soybean production in India hike by 8% to 11.9 million tonnes m/m. Higher prices of soymeal sharply lower the exports to 5,831 tonnes in September from 68,576 tonnes in the year-ago period. The government is very vigilant in reviewing the implementation of stock limit on Oilseeds and edible oil to keep prices under control. Edible oil prices have corrected for the second consecutive week and expected to trade in a broad range. The Government has cut the basic duty on CPO, Crude Soybean Oil and Crude Sunflower Oil from 2.5% to NIL to control prices. Moreover, edible oil prices in domestic market have corrected in October due to record imports of edible oil (17 lakh tonnes) in September and reduction of import duty on edible oils. However, tariff value on edible oils is capping further decline. The Agri-cess on these Oils also reduced from 20% to 7.5% for CPO and 5% for Crude Soybean Oil and Crude Sunflower Oil. As per MPOB monthly data, end-October palm oil stocks in Malaysia up 4.42% m/m to 1.83 mt while production was higher by 1.3% to 1.73 mt and exports plunged 12.03% to 1.42 mt.Ref Soy oil futures (Dec) may trade in range 1160-1200 similarly CPO futures (Dec) likely to trade in range of 1080-1120 levels.
Oil prices slumped, hit by a surge in the dollar after U.S. President Joe Biden said his administration was looking for ways to reduce energy costs amid a broader surge in inflation. Brent and U.S. crude futures dropped sharply at the end of the session as traders sold out of riskier assets, including stocks and commodities, driven by expectations that central bankers will take steps to curb rising prices. OPEC, said in its monthly report released Thursday that it expects oil demand to average 99.49 million barrels per day in the fourth quarter of 2021, down 330,000 barrels from last month's forecast. Consumer inflation data on Wednesday showed U.S. prices were rising at a 6.2% yearover- year rate, their fastest rate in three decades, and may spur both the White House and U.S. Federal Reserve to take action to head that off. That boosted the dollar, which often trades inversely to oil. Ahead in the week, crude oil may trade with sideways to bearish bias where it may take support near 5750 levels and could face resistance near 6200. Natural gas prices dipped in the previous week on rising output, and lower demand over the next two weeks because of increased nuclear and wind power generation. U.S. natural gas use rose significantly week over week, led primarily by an increase in the residential/commercial sector. According to the EIA, total U.S. natural gas demand rose by 5.7% week over week, which marks a second consecutive week of significantly increasing demand. The largest increase in demand was in the residential and commercial sectors. Ahead in the week prices may move in tight range of 350-390.
Cotton futures (Nov) traded lower but recovered last week and expected to trade in a range of 31000 – 33250 with little negative bias. The arrivals of kapas have started increasing in the physical. Cotton prices in the physical market are high at the time of arrival of the new crop due to concerns about a likely fall in the production. The outstanding stock of cotton is also low globally, while China's import demand remains higher. CCI also increased its selling price by 5500 per candy this month. For 2021/22, CAI has estimated cotton crop at 360.13 lakh bales higher than last year by over 7 lakh bales. Guar seed futures (Dec)closed lower for the second consecutive week on profit booking and new season arrivals. It is likely to trade lower towards 5800 with resistance at 6800. Currently, the prices are higher by 50% y/y on lower production prospects, multi-year lower stocks and good export demand. Arrival of new season guarseed declined in the physical market as the prices have corrected last week. The area under guar this season in Rajasthan was down at 21 lakh hac, lowest acreage in a decade. Guar gum exports expected to pick-up in coming weeks due to increase in US rigs. Castor Seed (Dec) closed flat last week but have recovered well from 2-week low. However, we expect the prices to trade lower towards 6300 with resistance at 6650. Due to higher area in Gujarat, there is expectation of higher production in the coming season. However, persistent export demand throughout the year for castor oil and meal may keep the prices at higher levels as stocks are lower with the oilmills. Castor meal exports down y/y by 23% in September while Castor oil exports down 25% y/y.
Industrial metals may trade in the range on mixed fundamentals. The prices may pressurize as the dollar firmed on bets of an earlier U.S. interest rate hike that could slow down the pace of global economic recovery. The dollar headed for its best week in almost five months against major peers, amid expectations of a sooner-than-expected rate increase from the Federal Reserve following a surprisingly strong reading on U.S. inflation. An early rate hike could trim liquidity in financial markets and slow recovery in the world’s biggest economy. Copper is often used as a gauge of global economic health. Codelco’s Chinese customers are reluctant to sign up for copper supply in 2022 at the highest premium in seven years because of strong backwardation in the copper market. Copper may trade in the range 720-760 levels. Nickel rose amid tight supplies, firm demand particularly from the battery industry, and forced spot buying as producers hoard materials for next year. Production has been hit badly in the Philippines, the top producer of the metal due to the rainy season. Elsewhere, nickel demand for stainless steel production is expected to decline due to ongoing power constraints in China and the slowing Chinese economy. Ahead in the week nickel may trade in the range of 1480- 1580 levels. Zinc prices dropped amid concerns that economic growth is slowing in China. Zinc on MCX may trade in the range of 268-285. Lead may trade with positive bias where it may trade in the range of 185-193. Aluminium gained supported by solid demand from the manufacturing industry and as energy consumption restrictions persist. Aluminium may continue to trade positive and the range would be 200-225.
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SILVER MCX (DEC) contract closed at Rs. 66,965.00 on 11th Nov 2021 . The contract made its high of Rs. 73999.00 on 03rd Jun’2021 and a low of Rs. 58150.00 on 30th Sep’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs 64764.60. On the daily chart, the commodity has Relative Strength Index (14-day) value of 62.932.
One can buy near Rs. 66000 for a target of Rs. 69500 with the stop loss of 64200.
COPPER MCX (NOV) contract closed at Rs. 737.65 on 11th Nov’2021. The contract made its high of Rs. 809.70 on 18th Oct’2021 and a low of Rs. 693.00 on 01st Oct’2021. The 18- day Exponential Moving Average of the commodity is currently at Rs. 742.41. On the daily chart, the commodity has Relative Strength Index (14-day) value of 47.454.
One can buy near Rs. 730 for a target of Rs. 765 with the stop loss of Rs. 710.
MCX COTTON (NOV) contract was closed at Rs. 32480.00 on 11th Nov’2021. The contract made its high of Rs. 33850.00 on 02nd Nov’2021 and a low of Rs. 24680.00 on 31st Aug’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 32025.31. On the daily chart, the commodity has Relative Strength Index (14-day) value of 63.138.
One can buy near Rs. 32300 for a target of Rs. 33500 with the stop loss of Rs 31700.
CRB traded up marginally; closed above 250 levels. Most of the commodities prices augmented despite a significant upside move in dollar index. The dollar was set for its best week in five months. Investors continued to bet that higher-than-expected inflation would prompt central banks to hike interest rates quicker than expected. Safe haven buying returned bullion counter too. Gold futures climbed for consecutive second week, stretching their winning streak into a sixth straight session to mark another settlement at the highest since mid-June on continuing concerns about high inflation in the U.S. Inflation soared to three-decade highs in October in the U.S., with the consumer price index (CPI) growing 6.2% year-on-year and 0.9% month-on-month. The core CPI rose 4.6% year-on-year and 0.6% month-on-month. Silver was just few points shy away from 67000 levels. Energy counter traded dull. Oil was down as a strong dollar continued to fuel bets that the U.S. Federal Reserve will hike interest rates earlier than expected in response to high inflation. The market is moving away from a strong economic recovery driven by a revival in demand for goods, which in turn has stoked energy demand, toward recovery in demand for services. Natural gas prices continued to trend lower as negative momentum perpetuated. Natural gas in storage was 3,618 Bcf as of Friday, November 5, 2021, according to EIA estimates. The weather is expected to be warmer than normal throughout most of the mid- West and the West and more relaxed than average in the south East during the next two weeks. All base metals moved up despite rise in dollar index. China exported 15,545 tonnes of refined lead in September, the highest monthly tally since 2007. The country has turned significant net exporter for the first time since 2018.The global nickel market is forecast to flip from a 62,000- tonne deficit in 2021 to a 78,000-tonne surplus next year.
In agricounter , edible oil and oilseeds tried to make from lower side. Internationally prices have increased due to expectation of lower ending stocks in coming season. This season peak arrival period delayed by about a month due to late withdrawal of monsoon. Cotton saw a pause in the rally. The arrivals of kapas have started increasing in the physical. Guar counter closed down on continued profitbooking. The arrival of new season guarseed declined in the physical market as the prices have corrected during the last two days. In spices, turmeric saw strong rally as demand is good at lower prices. The downtrend looks limited as production of turmeric may be lower than expected earlier due to lower area in Telengana and unseasonal rains.Dhaniya was also firm. Traders and stockists are offloading stocks in the mandis of Gujarat and Rajasthan due to steady demand as the sowing season is commencing soon.
Highlights
The report has eased concerns that the Biden administration will tap its SPR to curb what it sees as an excessive run-up in oil prices. President Joe Biden has been vocal in calling on OPEC to raise output beyond their quota levels, and senior officials of the administration have hinted in recent days that Biden might take action in the week started Nov. 7. The price of Brent has risen more than 60% this year and hit $86.70, a three-year high, on Oct. 25, supported by supply restraint by OPEC+ and recovering demand.
This week Indian rupee logged its biggest rise against the U.S. currency in two weeks amid continued foreign inflows into local initial public offerings. However, the upside in rupee was limited as FIIs are injecting into hedge basis which pushed the forward premia higher. In a truncated week, rupee was further supported by exporter’s dollar selling. Next week we will resumes Fed’s policy outcome that may guide the USDINR pair along with heavy inflows from IPO proceeds of Paytm that aims to raise $2.44 billion via a share sale next week in India’s biggest public listing. From the majors, Euro plunged this week vs dollar as higher inflation print in Euro zone with lower growth prospect pushed the single currency lower. In rupee terms euro too faced the heat below 87.00. Next week we do think that after the Fed meeting outcome, EURINR is likely to fall further towards 86.20. While pounddollar pairs remains the most volatile counter in the G10 pairs. Despite rate hike expectations from the Bank of England, pound unbales to hold its gains as renewed concerns over Brexit created negative sentiment in GBP pairs. Parallely GBPINR has tumbled from 103 to 102 this week. Going forward we think GBPINR may get some scope to raise further subject to Bank of England roll-out its November monetary policy.
USD/INR (NOV) contract closed at 74.4825 on 11-Nov-21. The contract made its high of 74.5950 on 11-Nov-21 and a low of 73.8725 on 09-Nov-21 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 74.8125.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 43.30.One can buy at 74.25 for the target of 75.25 with the stop loss of 73.75.
GBP/INR (NOV) contract closed at 99.9975 on 11-Nov-21. The contract made its high of 101.0600 on 08-Nov-21 and a low of 99.9350 on 11-Nov-21 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 101.7725
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 29.42. One can sell at 100.25 for a target of 99.25 with the stop loss of 100.75.
| 02nd NOV | Belarus threatens to cut off EU gas as migrant crisis escalates |
| 02nd NOV | India economy roars back but price rises threaten recovery |
| 02nd NOV | A weakened UK economy emerges from the Covid mist |
| 01st NOV | White House fights inflation threat |
| 01st NOV | UK economic growth slows in third quarter despite September pick-up |
| 01st NOV | US consumer prices rise at fastest pace in three decades |
| 01st NOV | UK Brexit minister tells EU to ‘stay calm’ over Northern Ireland threats |
| 01st NOV | Fed warns of risks posed by Chinese real estate |
| 01st NOV | Senior Fed official signals possibility of rate rise in 2022 |
EUR/INR (NOV) contract closed at 85.5700 on 11-Nov-21. The contract made its high of 86.3725 on 10-Nov-21 and a low of 85.5200 on 11-Nov-21 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 86.6700.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 25.87. One can buy at 85.20 for a target of 86.20 with the stop loss of 84.70.
JPY/INR (NOV) contract closed at 65.5100 on 11-Nov-21. The contract made its high of 65.9225 on 10-Nov-21 and a low of 65.3450 on 11-Nov-21 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 66.0525.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 32.45. One can sell at 65.50 for a target of 64.50 with the stop loss of 66.00.
(2/5)
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Considering the P/E valuation, on the upper end of the price band of Rs.662, the stock is priced at pre issue P/E of 48.97x on FY21 EPS of Rs.13.52. Post issue, the stock is priced at a P/E of 51.09x on its EPS of Rs.12.96. Looking at the P/B ratio at Rs.662, pre issue, book value of Rs. 52.80 of P/Bvx 12.54x. Post issue, book value of Rs.78.83 of P/Bvx 8.40x.
Considering the P/E valuation, on the upper end of the price band of Rs.635, the stock is priced at pre issue P/E of 46.97x on FY21 EPS of Rs.13.52. Post issue, the stock is priced at a P/E of 49.00x on its EPS of Rs.12.96. Looking at the P/B ratio at Rs.635, pre issue, book value of Rs. 52.80 of P/Bvx 12.03x. Post issue, book value of Rs.78.83 of P/Bvx 8.06x.
Tarsons Products Limited is a leading Indian life sciences company with more than three decades of experience in the production and supply of labware products. The company's product portfolio is classified into three broad categories including consumables, reusables, and others. As of March 31, 2021, the company has a diversified product portfolio with over 1,700 SKUs across 300 products. Trason's products are used in various laboratories across research organizations, academic institutes, pharmaceutical companies, Contract Research Organizations (CRO), diagnostic companies, and hospitals.
Leading Indian supplier to life sciences sector with strong brand recognition and quality products: The Company is an Indian labware company engaged in the designing, development, manufacturing and marketing of consumables, reusables and bench-top equipment. Its ability to offer differentiated, user friendly, reliable quality and cost-effective products has enabled it to develop strong brand recognition and consumer loyalty in key domestic and overseas markets.
Provide a diverse range of labware products across varied customer segments: The company is among the top three labware manufacturing companies in India, providing an extensive range of laboratory consumables, reusables and ‘others’ product categories. As of June 30, 2021, it had a diversified product portfolio with over 1,700 SKUs products across 300 distinct products. Recently, in the calendar year 2018, it has set up a PCR line for production of a wide range of PCR products.
Well-equipped and automated manufacturing facilities: The company currently operate five manufacturing facilities in West Bengal as of June 30, 2021. Its manufacturing capabilities are vertically integrated with design and development being carried out in-house. All its manufacturing facilities have injection moulding and extrusion blow moulding machines which are well complemented with advanced automation technologies.
Wide geographic reach through its pan India sales and distribution network: The company has a pan India sales and distribution network that enables it to cater to a wide range of end customers, thereby ensuring effective penetration of its diverse range of products. As a result of its pan India distribution network and its ability to distribute products on a pan-India basis, it believes it has been able to develop a comprehensive customer base that differentiates the Company from its competitors. Its distribution network across India comprises over 141 authorized distributors as at June 30, 2021. Its extensive and dedicated distribution network enables it to serve its customers in an efficient and timely manner.
Strengthening its foothold in its existing markets and expanding its product portfolio: Its strong presence in India and scale of operations allows it to increasingly focus on branding and promotional activities and enhance its visibility in the labware industry. It intends to continue enhancing its brand awareness and customer loyalty through promotional and marketing efforts.
Enhancing its manufacturing capacities in existing product categories to leverage industry growth drivers: In order to capitalize on growth opportunities, the company seeks to invest in physical and operational infrastructure to expand its manufacturing capabilities with a focus on expanding its capacities in existing product categories and diversifying its product portfolio by launching new products.
Increasing its global footprint in the overseas market: The company intends to enter into arrangements with key distributors in these regions to explore business opportunities in new overseas markets. Going forward, the company seek to secure a few leading customers of its ODM sales in USA and Europe which the company believe will further expand its customer base in overseas market.
The company is a plastic labware company enjoying the most preferred vendor status. Healthrelated segments have expanded post-pandemic, this augurs well for the company. The issue appears reasonably priced based on its financial data and future prospects. However, over 85% of the IPO proceeds would go to selling shareholders. Such IPO proceeds would not help a company getting benefitted for the future.
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SBI Mutual Fund, Kotak Mutual Fund, and Nippon India Mutual Fund witnessed the highest inflows in the second quarter of the financial year, according to a Morningstar report. Aditya Birla Sun Life Mutual Fund, IDFC Mutual Fund, and Franklin Templeton Mutual Fund witnessed largest outflows during the period.SBI Mutual Fund saw inflows of Rs 39,282 crore. A significant part of the net inflow in SBI Mutual Fund was due to its NFOs of SBI Balanced Advantage Fund and a couple of equity ETFs. Kotak Mutual Fund witnessed inflows of Rs 20,649 crore in the same period. Nippon India Mutual Fund garnered Rs 13,290 crore.Fund houses that saw the highest net outflows were Aditya Birla Sun Life with Rs 3,453 crore, IDFC with Rs 3,119 crore, and Franklin Templeton with Rs 2,123 crore.The second quarter of fiscal-year 2021-22 saw the new fund offerings of a total of 32 open-end funds (including ETFs) and 11 closed-end funds. Cumulatively, these funds mopped up around Rs 49,283 crore.
Strong inflows in new fund offers (NFOs) and a stable SIP book helped equity mutual funds attract a net investment of nearly ₹40,000 crore in the three months ended September 2021, a two-fold growth from the preceding quarter.The inflow pushed the asset base of equity mutual funds (MFs) to ₹12.8 lakh crore by September-end, from ₹11.1 lakh crore at the end of June, data with the Association of Mutual Funds in India (Amfi) showed.As per the data, the equity category witnessed flows to the tune of ₹39,927 crore in September quarter, as compared to an inflow of ₹19,508 crore in the June quarter.Equity mutual funds have been witnessing continuous inflows since March. Prior to this, equity schemes had consistently witnessed outflows for eight months from July 2020 to February 2021.
IDFC Mutual Fund has launched the IDFC Multi Cap Fund, an open-ended equity scheme that aims to create wealth over the long term by investing in a portfolio of large cap, mid cap and small cap equity and equity-related securities.The New Fund Offer will open for subscription on November 12 and close on November 26.According to the press release, the fund will be managed based on the ‘3-D Power’ strategy.'Diversity' feature highlights that the fund is mandated to invest at least 25% each in large cap, mid cap and small cap, with the flexibility to invest the balance as per the fund manager’s view.The 'Discipline' feature conveys the underlying intent to reduce risk by restricting the maximum allocation to mid-cap and small-cap stocks, and by limiting the possibility of fund manager style drift.The 'Dependability' aspect highlights the stock-selection process that will target quality management, focused capital allocation policies, a strong balance sheet and operating cash flows.
IIFL Asset Management has announced the launch of IIFL Quant Fund. This fund is an actively-reviewed, quantitative rule-based fund. The New Fund Offer (NFO) opened on 8 November and closes on 22 November. The fund will be managed by ParijatGarg and it will be benchmarked against S&P BSE 200 TRI.According to the press release, the fund aims to invest in stocks that show growth or defensive characteristics. The IIFL Quant Fund will have periodic rebalancing and review. The investment objective of the fund is to generate long term capital appreciation for investors from a portfolio of equity and equity-related securities based on Quant theme. Quality stocks will be screened, based on quantitative portfolio construction methods and techniques.The fund house also says that as this fund is based on quantitative rules, it is mainly driven by investment process over discretion, thereby avoiding market cap and behavioural biases. Further, the methodology and portfolio construction of the fund are back-tested across time periods and validated.
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