IGI Logo

Nifty Outlook

Markets traded volatile and ended with a cut of over half a percent. Initially, the benchmark opened on a subdued note, tracking mixed global cues and remained range-bound thereafter. Consequently, the Nifty index settled around the day’s low to close at 15,209 levels. Among the sectoral indices, power, capital goods and energy ended higher while IT, healthcare and banks closed in the red. On the flip side, the broader markets outperformed and ended almost unchanged. We’re seeing healthy correction however there’s no shortage of trading opportunities. We thus reiterate our view to focus more on stock selection and using dips to add quality stocks. On the benchmark front, Nifty has next support at 15,050 levels.

News

* Dr. Reddy announced the launch of Capecitabine Tablets, USP a therapeutic equivalent generic version of Xeloda (capecitabine) Tablets approved by the USFDA.

* GMM Pfaudler announced that it has successfully acquired a majority stake of its parent, the Pfaudler Group from the private equity firm Deutsche Beteiligungs AG Fund VI, after receiving all necessary regulatory approvals.

* Lupin announced the launch of Posaconazole Delayed-Release Tablets, 100 mg, after its alliance partner AET Pharma US Inc. (part of Tiefenbacher Group) received an approval for its ANDA from the USFDA.

Derivative Ideas

TATACONSUM added around 6% in open interest addition as LONG buildup was seen in it in till closing time. Current chart pattern also indicates further up move in its price. We suggest buying TATACONSUM as per below levels

Strategy:- BUY TATACONSUM IN CASH AT 630 SLOSS AT 620 TRGT 650

Investment Pick - Britannia Industries Ltd.

Britannia Industries (BRIT) posted mixed numbers wherein revenue was below our expectation while profit grew strong. Revenue came in at Rs 3165.6cr, up by 6.1% YoY. On operational front, its EBITDA grew by 21.7% YoY to Rs 611.5cr, while margin expanded by 248bps on the back of cost efficiencies measures. The company reported healthy growth of 22.4% YoY in net profit at Rs 452.6cr with margin expansion of 190bps YoY to 14.3%. Going forward, we remain positive on the company’s long term growth as the focus would be enhancing sales, improving margins via cost efficiency measures and strengthening distribution reach. Maintain a Buy. Going forward, BRIT strategy would be to drive strong growth by launching new and innovating products, focus on brand building and strengthening distribution reach. Besides its efforts on improving margins via cost efficiency would be its core agenda. Apart from this, strong growth momentum from rural and international businesses will continue to support and lead to market share gains. Further along with the optimistic management plan the company has strong balance and decent cash flow which would aid growth. Thus, we have a positive view on the stock for long term and have maintained a buy rating on the stock with a target price of Rs 4,265.

Buy Britannia Industries Ltd @ 9-12 Months CMP 3,389.45  TGT 4,265

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer http://ex.religareonline.com/disclaimer

SEBI Registration number is INZ000174330

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer