IGI Logo

Nifty Outlook

Markets settled marginally lower as participants preferred to book profit at higher levels. The benchmark opened on a firm note following supportive global cues however profit-taking in the index majors erased all the gains and pushed the index lower. Eventually, the Nifty index ended lower by 0.2% at 15,815 levels. Amongst the sector, a mixed trend was witnessed wherein metal, healthcare and FMCG ended with gains whereas IT, capital goods and oil & gas ended with losses. The broader markets outperformed wherein both midcap and smallcap ended higher by 0.6% and 0.5% respectively

Markets may react to the announcements made by the Finance Minister(FM) in early trades on Tuesday which were primarily focused on boosting the economic recovery and supporting the vulnerable sectors and individuals impacted due to COVID. We reiterate our bullish view and suggest continuing with a stock-specific trading approach. Among the sectors, banking has the potential to trigger the next up move.

News

* NTPC declares commercial operation of Unit-2 of 660 MW capacity of Tanda Super Thermal Power Station Unit-2 of 660 MW capacity of Tanda Super Thermal Power Station, Stage-II (2 x 660 MW) is hereby declared on commercial operation.

* NLC India reported its numbers wherein consolidated revenue was down 7.5% YoY at Rs 2,839.6 cr versus Rs 3,069.3 cr. Its Consolidated net profit was up 54.6% at Rs 753 cr versus Rs 487 cr.

* Escorts Agri Machinery (EAM), division of Escorts Limited, shall be increasing the prices of its tractors effective July 1, 2021. There has been a steady rise in commodity prices necessitating a price hike to offset the impact of the continuing inflation. The increase in prices would vary across models and variants.

Derivative Ideas

APOLLOTYRE FUTS added around 9% in open interest as LONG buildup was seen in it. Current chart pattern also indicates further up move in its price. We suggest buying in APOLLOTYRE in cash as per below levels.

Strategy:- BUY APOLLOTYRE BETWEEN 227-228 STOPLOSS 223 TARGET 239.

Investment Pick - Laxmi Organic Industries Ltd.

Incorporated in 1989, Laxmi Organic Industries Ltd is a leading manufacturer of Acetyl Intermediates and Specialty Intermediates, with almost three decades of experience in large-scale manufacturing of chemicals. The company’s products are largely used in various high-growth industries such as pharmaceuticals, agrochemicals, dyes & pigments, inks & coatings, paints, printing & packaging, adhesives, etc. They have two manufacturing facilities in Mahad, Maharashtra with one each for both products. Further, they have expanded operations globally, with a presence in over 30 countries.

Laxmi Organic operates in a specialty chemical space that has high entry barriers and is capital intensive. However, the company is well-placed with a strong product portfolio and technologically driven R&D and manufacturing facilities. Going forward, the company intends to innovate new products, undertake contract manufacturing and expand its geographical presence which will increase revenue as well as market share. Besides, they have plans to expand their manufacturing capabilities for the Acetyl Intermediates and fluoro-chemical which augurs well for future growth. On the financial front, we have estimated revenue and PAT to grow at a CAGR of 15% and 20% over FY21-23E. We have a positive view on the company’s long-term growth plans thus we have initiated coverage on the stock with a buy rating and a target price of Rs 279.

Buy - Laxmi Organic Industries Ltd. @ 9-12 Months CMP 221.8 TGT 279

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 Disclaime