TRADING TIPS FOR TODAY

                         

                                      BUY CALL         

                                                                             (AMOUNT IN RUPEES)

COMPANY	BUY AT	STOP LOSS	TARGET
SUN PHARMA	815	803	836
TECH MAHINDRA	524	517	534
RIL	1000	989	1018
LUPIN	1630	1614	1659

BNP PARIBAS TO BUY SHAREKHAN

BNP Paribas will acquire 100 per cent stake in Mumbai-based brokerage firm Sharekhan for an undisclosed sum.

This is the second acquisition by BNP Paribas in the Indian retail broking segment. Earlier in 2007, the company had acquired a 34 per cent stake in Geojit Financial Services.

DR. REDDY'S LAB NET AT RS 626 CR

Dr. Reddy's Lab has posted a net profit of Rs. 626 cr for the quarter ended June 30, 2015 as compared to Rs. 550 cr for the quarter ended June 30, 2014. 

The total Income has increased from Rs. 3536 cr for the quarter ended June 30, 2014 to Rs. 3770 cr the quarter ended June 30, 2015.

The stock rallied 5 percent in today's trade and closed at Rs 3907.

HINDALCO MAY GO FOR 5/25 SCHEME

Hindalco is in talks with banks to refinance around R7,000 crore of loans for two projects — Aditya Aluminium and Utkal Alumina International — under the Reserve Bank of India’s  5/25 scheme. 

FORTHCOMING IPO: HEALTHCARE GLOBAL ENTERPRISES LIMITED

                               

   

ISSUE SIZE	PUBLIC OFFER OF UP TO 31,098,000 EQUITY SHARES
PRICE	NOT DECIDED
FACE VALUE	RS 10
BUSINESS
PROMOTERS	DR. BS AJAI KUMAR, DR. GANESH NAYAK, DR. BS RAMESH, DR. KS GOPINATH AND DR. M GOPICHAND
LISTING	BSE, NSE
BRLM	KOTAK, IDFC, IIFL, YES BANK, EDELWEISS, GOLDMAN SACH
REGISTRAR	KARVY

SYNGENE IPO SUBSCRIBED 32 TIMES

Syngene IPO which closed today has been subscribed to the extent of 32 times.

TWITTER POSTS BETTER NUMBERS IN JUNE QUARTER

Twitter has posted a revenue of  $502 million for JUne 2015 quarter, compared with $312 million a year ago. The company posted a net loss of $137 million, in the same quarter last year, it posted a loss of $145 million.

IPO NEWS : HDFC LIFE PLANS LISTINGS

HDFC Chairman Deepak Parekh says there is possibility of HDFC Life getting listed. Standard Life which holds 26% has expressed its intention increasing the stake to 35%.

CIRCUIT FILTER FOR 17 STOCKS CHANGED BY BSE

BSE has changed the circuit filter for the following scrip/s with effect from July 29, 2015.

Sr. No.	Scrip Code	Scrip Name	Circuit Filter % Revised to
1	500033	Force Motors Ltd	10
2	517206	Lumax Industries Ltd	10
3	532404	Saven Technologies Ltd	10
4	532972	Sankhya Infotech Ltd	10
5	533632	Onelife Capital Advisors Ltd	10
6	522207	Rasandik Engineering Industries India Ltd	10
7	531687	Karuturi Global Ltd	10
8	532341	IZMO Ltd	5
9	539026	SSPN Finance Ltd	5
10	590041	Kavveri Telecom Products Ltd	5
11	522134	Artson Engineering Ltd	5
12	511092	JMD Telefilms Industries Ltd	5
13	511333	VLS Finance Ltd	5
14	531196	Gagan Polycot India Ltd	2
15	530859	Cosboard Industries Ltd	2
16	590087	Ellenbarrie Industrial Gases Ltd	2
17	513173	Steel Strips Infrastructures Ltd	2

MARUTI SUZUKI NET RAISES IN Q1 FY16

Maruti Suzuki  has posted a net profit of Rs. 1193 cr for the quarter ended June 30, 2015 as compared to Rs. 762 cr for the quarter ended June 30, 2014. 

The total Income has increased from Rs. 11666 cr for the quarter ended June 30, 2014 to Rs. 13596 cr for the quarter ended June 30, 2015.

The stock gained Rs 19 and closed at Rs 4195 in yesterday's trading.

SAHARA LOSES MUTUAL FUND BUSINESS LICENCE

SEBI has cancelled the registration of Sahara Mutual Fund saying it was no longer 'fit and proper' to carry out this business and ordered transfer of its operations to another fund house.

SYNGENE INTERNATIONAL IPO FULLY SUBSCRIBED

Syngene International IPO has been fully subscribed on day 2. The IPO closes tomorrow.

VALCAMBI COMES UNDER RAJESH EXPORTS FOLD

Rajesh Exports  has acquired European Gold Refineries, the 100 per cent holding company of Valcambi, for $400 million in an all-cash deal.

Valcambi is the world’s largest precious metals refining company and is headquartered in Switzerland. Valcambi has processed and sold 945 tonnes of gold and 325 tonnes of silver on an average per year during the last three financial years, which is more than the annual consumption of gold in India. 

FII/FPIs NET SELL FOR RS 860 CR

FII /FPIs have net sold for Rs 860 cr in cash market today.

SYNGENE IPO SUBSCRIBED TO THE EXTENT OF 33%

Syngene International IPO has received good response on day 1. The IPO has been subscribed to the extent of 33% of the total offer.

ONGC, GAIL, TATA MOTORS, TATA STEEL AND NMDC HIT 52 WEEK LOW

ONGC (Rs 277), GAIL(Rs 351), Tata Motors (Rs 377), Tata Steel (Rs 257) and NMDC (Rs 111) have hit 52 week low. As of now Sensex is down around 280 and NIFTY 90 points.

SENSEX @1,00,000 IN 2020. WHAT KARVY HAS NOT FACTORED IN

(This article was first published on 05-06-2014)

KARVY Stock Brokings which has been recently barred by market regulator SEBI, from taking up new assignment or launching new schemes for six months in respect of its role as a stockbroker, has come out with a research report wherein it says that Sensex will touch 1,00,000 mark by 2020. 

KARVY has 5 reasons why Sensex will touch that magic figure.

First: Macro-economic revival in India will open opportunities to make strong returns in the next few years. 

Second:  A real GDP growth of 6% along with Inflation of around 7% should lead to a nominal GDP growth of 13%.

Third: KARVY believes that earnings growth for new five to six year business cycle should be at least 20% considering the economy will revive from a very low base.

Fourth: If the infrastructure cycle revives quickly, the earnings growth revival will be faster with even 25% CAGR looking possible. 

Fifth: An earnings growth between 20-25% and multiple re rating from 15x to 16-17x in the next few years can lead to a 25% compounding of Sensex returns, which will take it to 100,000 levels by calendar year (CY) 2020.

What KARVY has not factored in are:

1. Happening of a 'Black Swan' event - like the one occurred in 2008 which led to global melt down. A sub prime crisis. Prior to the global melt down in 2008, Sensex was hovering around 22,000 and experts like KARVY then predicted that Sensex will touch 50,000 mark by 2014. Believing this theory millions of investors jumped in to the market. Then came the melt down. Equity markets across the world plummeted. Within few months Sensex came down to 8000 levels. Most investors lost money, some went bankrupt, few committed suicide. Brokerage houses down sized their operations.  It took nearly 6 years for Sensex to come to the level of 2008. Between June 2008 and June 2014, in full 6 years, the Sensex has moved by just by 3000 points.

2. Mansoon failure - This will apart from deterrent to GDP will be a drag on some segments like FMCG, auto and banks.

3. Fluctuations in currencies of major economies which will hinder our import / export.

4. Regime change / change in the economic policies in countries where in India is a major trading partner. 2016 is a big year for world economy. U S will elect its new president. The incumbent may be not as friendly as the current one. 

5. Slow down in world's major economies like  U S, China and Japan will have an impact on  India's growth story.

6. Terror strike similar to 29/11 which will make the  world economy crawl.

7. Spurt in oil prices internationally, reasons other than production and supply. We import 80% of oil requirements. If oil prices in international markets raises unreasonably as it happened in 2008-09, where in one barrel had touched $ 150, our economy will go for a tailspin.

8. Nature's fury - floods, earth quake and tsunamis. Capital earmarked for development will be diverted towards rehabilitation, will impact growth.

9. Scams, fraud in stock market - similar to one committed by Harshad Mehta and Ketan Parekh. Investors will lose faith in the system, market. We shall be back to square one.

10. Failure of a big bank / financial institution, globally. Money will flow away from equity markets to commodity / other segments.

( KARVY made the above prediction in first week of June, 2014. The sensex was hovering around 25,500 at that time).

TODAY'S QUOTE

True prosperity is the result of well placed confidence in ourselves and our fellow man. Benjamin Burt

SYNGENE INTERNATIONAL IPO OPENS TODAY - APPLY

Syngene International IPO in the price band of Rs 240-250 opens for subscription today.  The IPO is from Biocon stable. The company's business model is good and the is likely  to achieve a CAGR around 25% in the coming years. The company's net has been improving  over the years.  FINANCIALS:                              (RS IN CRORES) 31-03-2015 31-03-2014 31-03-2013 TOTAL REVENUE 872 702 554 NET PROFIT 175 135 102 EPS (Rs) 8.89 6.99 5.81 SHARE CAPITAL 199.1 26.1 26.1 RONW (%) 21 21 20 RISKS: 1. Health care industry reform could reduce or eliminate the business opportunities and otherwise adversely impact the business. 2. Clinical trials create a risk of liability and increased regulations, which may have an adverse impact on the business. 3. The business depends significantly on the continued effectiveness of the information technology infrastructure, and failure of such technology could adversely impact the operations. 4.  The average cost of acquisition of Equity Shares by the Promoter- Biocon is 0.05 per Equity Share. STRENGHT: A.World-class infrastructure, systems and processes that comply with quality standards to serve international markets and successful audits by regulatory authorities such as the FDA and EMA. B. Talented and qualified pool of scientists and an experienced management. C. Integrated service offerings across multiple domains with a proven track-record of successful delivery, reliability, cost efficiency and client satisfaction. D. Strong pedigree.
VALUATION AND RECOMMENDATIONS:
The IPO is from the one of the leading lights of biotechnology industry and respected business house. It has strong pedigree.  Though the valuation is little bit stretched, considering its pedigree and the business segment in which it operates, the premium sought is justified. We strongly recommend the investors to apply for the IPO.