Tuesday, September 12, 2017

Atul Auto Ltd ( ATULAUTO )-A Multi Bagger, Buy/Sell/Hold, Growth Prospects and Recommendation, News and Results, Target Price and Analysis, Views and Outlook, Hot Stocks/Picks, Financial Analysis & Valuations


ATULAUTO closes at 486.55   with  a  Gain      of   + 2.0 %   on    12  Sep 2017   with formation of  a  Green  Candle     on Daily  Price Chart.  Technically  ,   ATULAUTO has entering into a Long Term Bullish Trend. Major Momentum Indicators are   showing Strength on Daily Price Chart. Our NNI index has also turned Positive.
We Recommend to   BUY /    Accumulate     ATULAUTO at   CMP / Lower Level
Super Investor ( If  any ) : Yes / No  (  Name-  Kedia Securities Private Limited )
Mutual Funds House Invested: Yes / No (  Number of MF invested - 5 )
Mutual Funds holding :  11.17 %
FII/FPI holding : 5.14%
Rating Agencies View on the Sector:  Positive  
Trend of the Sector as   per  Report  ( Indian Economy Review, Capital Line , September 2017 ) – Positive
Target: ₹  700-800
Stop Loss  : ₹  445
Time Frame  :  6-12 Months
Disclaimer : We are going to take exposure shortly.



You can reach the author at +91 880 2230 836 or e-Mail : mail@niftynext.com

Euro Leder Fashion Ltd ( 526468 )-A Multi Bagger, Buy/Sell/Hold, Growth Prospects and Recommendation, News and Results, Target Price and Analysis, Views and Outlook, Hot Stocks/Picks, Financial Analysis & Valuations


Euro Leder Fashion Ltd  closes at 17.30   with  a  Gain      of   + 4.80 %   on    11  Sep 2017   with formation of  a  Green  Candle     on Daily  Price Chart.  Technically  ,   Euro Leder Fashion Ltd  has entering into a Long Term Bullish Trend. Major Momentum Indicators are   showing Strength on Daily Price Chart. Our NNI index has also turned Positive.
We Recommend to   BUY /    Accumulate     Euro Leder  Fashion Ltd  at   CMP / Lower Level
Super Investor ( If  any ) : Yes / No  (  Name-  XXX)
Mutual Funds House Invested: Yes / No (  Number of MF invested - 2 )
Rating Agencies View on the Sector:  Positive / Robust
Trend of the Sector as   per  Report  ( Indian Economy Review, Capital Line , September 2017 ) – Positive
Target: ₹  51-70
Stop Loss  : ₹  12.30
Time Frame  :  12-18  Months
Disclaimer : We are going to take exposure shortly.


 You can reach the author at +91 880 2230 836 or e-Mail : mail@niftynext.com

Monday, September 11, 2017

Capacit'e Infraprojects IPO

About the Issue
Capacit’e Infraprojects Limited’s IPO consist of fresh issue of equity shares worth Rs 400 crore with face value of Rs 10 per share. The minimum lot size is of 60 shares. The Issue price band is between Rs 245-250 per equity share. The issue will remain open for subscription from September 13-15, 2017. The company will be listed on both, the BSE and NSE.

Purpose of the IPO
Company would utilize the net proceeds for –
-          Funding working capital requirements
-          Funding purchase of capital assets (system formwork)
-          General corporate purposes

Company background
Capacit’e Infraprojects Ltd. is a company which was incorporated in 2012, engaged in construction of residential, commercial and institutional buildings. It provides end-to-end construction services for residential buildings, multi- level car parks, corporate office buildings and buildings for commercial purposes and buildings for educational, hospitality and healthcare purposes. Its construction includes constructing concrete building structures as well as composite steel structures. Company also provides mechanical, electrical and plumbing and finishing works.

Company operates in the Mumbai metropolitan region (MMR), the National Capital Region (NCR) and Bengaluru. The operations are geographically divided into MMR and Pune, NCR and Patna and Bengaluru, Chennai, Hyderabad, Kochi and Vijaywada. As on May 31, 2017, projects in the West Zone, North Zone and South Zone constituted, approximately 58.93%, 14.29% and 26.79% of the total projects, respectively. Its order book as at May 31, 2017 was of Rs 4,602.47 crore, comprising of 56 ongoing projects. The order book consists of 90.05% residential, 9.58% commercial and 0.37% institutional projects.

It has a reputed client base including Kalpataru, Oberoi Constructions Limited, The Wadhwa Group, Saifee Burhani Upliftment Trust, Lodha Group, Rustomjee, Godrej Properties Limited, Brigade Enterprises Limited and Prestige Estates Projects Limited.

Industry Outlook
India’s construction industry is expected to log materially faster growth, fuelled by spends in road, irrigation, rail and urban infrastructure projects over 2016-17 to 2020-21. Total spending in this period is expected to be in the range of 23-24 trillion, i.e. growth will be at CAGR of 10-12%. Over the next five years, infrastructure projects will provide the maximum construction opportunity at almost 92% of overall construction spend, owing to the central government's continued focus on roads, urban infrastructure and railways.

Some of the key initiatives that are expected to be the growth drivers in the upcoming years are affordable housing, Pradhan Mantri Awas Yojana- Housing for All by 2022, Smart Cities Mission, Slum rehabilitation and many more.

Financial Performance



Revenue of the company has grown at a CAGR of 75.4% over FY14-17. EBITDA has grown at a CAGR of 114.31% and PAT at a CAGR of 156.85% for FY14-17. As of May 31, 2017, the aggregate indebtedness (fund based and non-fund based) outstanding was Rs 477.47 crore, on a consolidated basis. Its debt-equity ratio has improved dramatically from 3.9x in FY14 to 0.51x in FY17. Its RoNW for FY15, FY16 and FY17 was 56.1%, 28.4% and 23.2% respectively.

Valuation and peer comparison



Industry’s average P/E works out 20x. As compared to its peers, we see the company’s issue price is fairly priced.

Our View
Within five years of incorporation, the company has grown at a tremendous rate. Its EBITDA margin has been in double digits and PAT margin has also been decent from past three years. Its valuations are also fair. The company has strong order book and is competent to complete the projects within time. Investors can get good returns in the long run, if the company continues to deliver such robust growth. Considering the above factors, we advise investors to subscribe for the IPO.


*40 or lower – Avoid Investment, 41 to 45 – Risky, 46 to 50 – Invest with limited exposure, 51 to 55 – Investment recommended, 56 & above – Excellent Investment.
Source : http://www.dsij.in/article-details/ArticleID/22718/Capacite-Infraprojects-IPO

ICICI Lombard IPO

About the Issue
The much-awaited IPO of ICICI Lombard General Insurance Company is coming up from September 15-19, 2017. The issue size consists of sale of 8,62,47,187 equity shares with face value of Rs 10 aggregating up to Rs 5,700 crore. The price band ranges between Rs 651-661 per equity share. The minimum lot size consists of 22 shares and in multiples thereon. Post allotment, the company will get listed on both BSE and NSE.

Purpose of the issue
- To achieve the benefits of listing the equity shares of the company on the stock exchanges
- Carry out the sale of 8,62,47,187 equity shares by the selling shareholders. The company will not receive any proceeds from the offer for sale.

Company Background
ICICI Bank Ltd., India’s largest private-sector bank and Fairfax Financial Holdings Ltd., a Canada-based holding company, jointly started this insurance business under the name of ICICI Lombard General Insurance Company Ltd. It commenced its operations in 2002. The company offers a comprehensive and well-diversified range of products, including motor, health, crop/weather, fire, personal accident, marine, engineering and liability insurance, through multiple distribution channels.

In FY17, the company issued approximately 17.7 million policies and its gross direct premium income was Rs 107.25 billion, translating into a market share, on a gross direct premium income basis, of 8.4% among all non-life insurers in India and 18% among private-sector non-life insurers in India. For the quarter ended June 30, 2017, it issued approximately 5.2 million policies and the gross direct premium income was Rs 33.21 billion, translating into a market share, on a gross direct premium income basis, among all non-life insurers in India of 10% and 20.2% among private-sector non-life insurers in India. The claim ratio of the company currently stands at 80 per cent. The company’s key distribution channels are direct sales, individual agents, bank partners, other corporate agents, brokers, and online, through which it serves the individual, corporate and government customers. The company is present in 618 out of 716 districts across India.

The company’s investment policy is designed with the objective of capital preservation and achieving superior total returns within identified risk parameters. It is also focusing on investments in technology and innovation, which is improving its efficiency and increasing its access and reach towards customers.

Industry Outlook
The Indian non-life insurance sector offers different products such as motor, health, crop, fire, marine, liability, travel, aviation and home insurance aimed at meeting different protection needs of retail customers, government as well as corporate customers. The Indian non-life insurance sector has been regulated by the Insurance Regulatory and Development Authority of India (IRDAI). The IRDAI regulates the insurance sector in all states in India and any regulatory changes or product approvals are enforced uniformly across the country.

Indian non-life insurance sector grew at a CAGR of 17.4% between FY2001-17. India was also amongst the fastest growing non-life insurance markets over 2011-16, growing at 14.5%. Despite its size and growth profile, India continues to be an under-penetrated market with a non-life insurance penetration of 0.77% in 2016, as compared with global average of 2.8% of the gross domestic product. As of March 31, 2017, there were a total of 30 companies in the Indian non-life insurance sector, which can be classified as multi-product insurers and single-product insurers. According to CRISIL Research, GDPI for non-life insurers are projected to grow at 15-20% CAGR over fiscal 2017 and fiscal 2022. Strong macroeconomic backdrop, coupled with India’s large working population, rising affluence, rapid urbanisation and rising awareness of risk, would continue to propel the growth of the non-life insurance industry in India.

Financial Performance


The company’s revenue has grown at a CAGR of 25% over last five years. Its profits have grown at a CAGR of 65% over last five years.

Non-life insurance products – Performance & Outlook
The company’s various product segments have shown growth as compared to industry growth, which is as follows –



As the new vehicles will have to be mandatorily insured, strong growth in third party motor insurance premiums is expected and thus the company will have good scope to grow in motor insurance. The Government of India is making various schemes, wherein maximum individuals can insure their health. The company has many opportunities in this segment to reach at par with the industry. The government is encouraging farmers to take up crop insurance, which could be an alternative to loan waiver. Due to this, escalation is seen in penetration of crop insurance. Travel and aviation insurance, included in others, too has a good scope to grow in the upcoming years.

Valuation
On the upper price band of Rs 661 with EPS of Rs 14.32 for FY17, its P/E works out at 46.1x. There were no companies in the insurance industry which got listed on stock exchange. ICICI Prudential Life Insurance Company was the first life insurance company that got listed on BSE & NSE recently. As on March 31, 2017 ICICI Prudential’s P/E was 32.6x. ICICI Lombard General Insurance Company would be the first non-life insurance company to go public. As against ICICI Prudential’s P/E, ICICI Lombard’s issue price seems to be slightly over-priced.

Our View
Several insurance companies, including state-owned ones, are queuing up to launch IPOs, which include companies like SBI Life Insurance Co. Ltd, HDFC Standard Life Insurance Co. Ltd, General Insurance Corp. of India and New India Assurance Co. Ltd. The market of insurance industry is large and is expected to grow at a fast pace. All the players in this industry would have opportunities to grow further. The company’s financial performance has been strong and being the first player to go public, it can have an advantage over others. The strong distribution channel enables the company to expand its customer base. Considering these factors, investors can subscribe to the IPO to reap long-term benefits.

*40 or lower – Avoid Investment, 41 to 45 – Risky, 46 to 50 – Invest with limited exposure, 51 to 55 – Investment recommended, 56 & above – Excellent Investment.
Source : http://www.dsij.in/article-details/ArticleID/22724/ICICI-Lombard-IPO-%E2%80%93-A-safe-bet

Disclaimer

The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The above recommendations are based on the theory of Technical Analysis and do not reflect the fundamental validity of the Scrip.M/S Durgapur Holdings & www.niftynext..com does 't take any Responsibility for any losses arising from using the Stocks Recommendations.
We(M/S Durgapur Holdings & WWW.NIFTYNEXT.COM) are not Registered with Any Regulatory Body in India ie SEBI,NSE,BSE,AMFI or Any Otheres.


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