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Welcome to Market Insights.
In this edition, Aditya Trading Solutions (ATS Research) advise investors to leverage the current opportunity, and accordingly recommend quality stocks for mid- to long-term investments. At the same time, for investors looking for stocks with an over 40% upside potential in a year, Nirmal Bang recommend a south based small cement company. In other articles, Prabhudas Lilladher upgrade their rating on India's leading state-controlled coal-miner to BUY, and SMC recommend Aarti Industries and Essel Propack on fundamental grounds while JK Tyre and Sparc Systems on technical reasons. As usual, we also have a technical query answered by our experts in the 'Ask an Expert' section.
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|Buy this cement stock for 43% upside potential in a year|
|According to Nirmal Bang, at the CMP of Rs 92, this south based small cement company is trading at 3.8x its FY16E EV/EBITDA. Valuing its business at 5x FY16E EV/EBITDA, they recommend a price target implying an upside potential of 43% in a year. They believe that the scrip looks like an attractive investment opportunity among small-cap stocks and hence recommend a BUY for it.
|Prabhudas Lilladher upgrade from 'Accumulate' to 'Buy' on this state-controlled miner|
|According to Prabhudas Lilladher, this miner has dropped ~25% from its peak and has underperformed the indices as a result of a change in investor sentiments as well as due to combination of concerns like overhang on the proposed stake dilution by the government and weakness seen in the e-auction segment. Although the stake dilution would remain as an overhang in the immediate period, the government is unlikely to divest the stake at the current depressed valuations, especially when significant improvements are seen in the company's operational performance and efforts are in place to achieve ~900m tonnes offtake target in 2020.
| Authors whose contributions have been included in this edition: Aditya Trading Solutions, Nirmal Bang, Prabhudas Lilladher, and SMC
Stocks discussed in this edition: NCL Industries, Coal India, Aarti Industries, Essel Propack, JK Tyre, and Sparc Systems
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|Fundamental picks: These stocks have an upside of 36% and 22% respectively|
|According to SMC, expanded capacities would enable Aarti Industries to increase its volumes in the high growth end user applications of polymers, specialty pigments and agro chemicals, while the leverage on the capacities Essel Propack has built up will aid in improving in margins. Looking forward over the next 8-10 months, SMC is recommending these two scrips for the respective upside potential they hold.
|Technical Calls: Buy JK Tyre and Sparc Systems|
|According to SMC, the 200 days Exponential Moving Average (EMA) of JK Tyre on the daily chart is currently at Rs102.41, and investors can buy the stock in the range of 103-105 levels placing stop-loss at 99 levels. Similarly, the 200 days Exponential Moving Average (EMA) of Sparc Systems on the daily chart is currently at Rs361.34, and investors can buy the stock in range of 350-355 levels placing stop-loss at 338 levels.
|Featured Technical Call for today by Stock4Gains
Remain in / buy keeping revised SL @ 990
The stock likely to shoot up to 1060-1075 and then to 1110-1135 in very short span
|Ask an Expert - An answer to your question is just an e-mail away!|
|One of our readers and an active investor had approached our experts sharing his portfolio of 21,91,822.66 featuring 23 stocks and seeking advice on it. As always, Rakesh Rathod was prompt enough to analyse the entire portfolio and advise on which stocks to hold and which stocks to sell.
Do you have any such queries? Please feel free to post them on our Ask an Expert section and have your queries answered by our experts.
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