Closing Price-Week 1Batch Number-8Sr. No.Name of the Company18th July, 2014 Closing PriceNumber of stocksTotal1DB Corp321.85310.70100,0002Marksons Pharma 33.13021.15100,0003Divi's Lab1495.666.86100,0004Natco Pharma110090.91100,0005J.K. Cement394.15253.71100,0006Motilal Oswal Financial Services243.1411.35100,0007Jaypee Infratech37.152691.79100,0008Indraprastha Gas373.95267.42100,0009Blue Star303330.03100,00010IFB Industries151662.25100,000
1,000,000
Reason-Week 1Batch Number-8Sr. No.Name of the CompanyReason 1Reason 2Reason 31DB CorpMedia Industry is estimated to growth at a rate of over 15.2% CAGR due to digitization and high preferance of local content in print media. DB Corp is the market leader in this with a strong distribution network. To put things in perspective, DB Corp's Gujarati Edition has been launched in Mumbai thereby boosting the sales in the regionThe company's Q1FY15 results were better than broker estimates so there is a very positive sentiment among investorsIt is a regional player and its popularity enables it to command a premium over national players (Due to this popularity it has the ability to take price hikes). DB Corp operates in 4 languages2Marksons Pharma Company has recently received ANDAs approval from US FDA and are in the processof approval for more products giving it more access to US market.New products launched in FY12 and FY13 generated revenues of Rs 274mn in FY13.We expect the new products to drive future growth of the company.Billions of US$ worth of drugs going off patent each year in US. Marrksons Pharma is tieing up with multinationals, generic companies and distributors for the distribution of its products in the US.3Divi's LabIncreased production due to recent capacity augmentation program at their DSN SEZ plant.Expected 30% growth in the revenues and a 53% surge in the net profit of the company in Q1FY2015 which is better than the industry average rate.Low P/E 22.6 when compared to industy P/E of 27; recent 1000% dividend to shareholders is a being seen as huge positive4Natco PharmaNatco Pharmarecently received tentative approval for its 6 drugs including Oseltamivir, Glatiramer etc. and have a strong product pipeline for next 5 years which promises sustainable growth.Started expansion in to new geographies like China, Brazil, Singapore etc. leading to a bigger and growing market for its products.Recently, Bombay High Court upheld the compulsory license granted to Natco Pharma on Nexavar of Bayer's patented kidney cancer drug which boosted Natco's business. In another case, Supreme Court Chief Justice Roberts has denied Teva's application for an injunction seeking to prevent launch of a generic version of Copaxone which furhter benefitted Natco Pharma.5J.K. CementStrong 22%/43% and 10%/28% yoy growth in white cement/wall putty in FY 13 /FY 14 increased market share. Also it has 13% CAGR in EPS for last 5 years and a Beta of 1.15UAE white cement project launched. JK Cements 0.6m-ton plant in Fujairah, the UAE, was fully operational in Mar 2014. It is expected to operate at ~50 percent utilisation in FY15 and gradually increase.Increase in capacity. Rajasthan project to boost grey cement growth. Grey cement over FY11-14 had recorded a meagre 2 percent CAGR due to capacity limitations at the North plant and subdued demand in the South-West. The new 3m-ton grey cement project in Rajasthan coupled with improved demand in South-West is expected to result in a 17 percent volume CAGR over FY14-17. Infrastructure requirements, real estate boom will increase demand for cement.6Motilal Oswal Financial ServicesVenturing into Home Financing through its arm Aspire Home Finance Corporation. Housing is one of the priority sector of the new government and hence this business will grow.With industries growing, capital markets will be one of the largest beneficiaries and thus Motilal's Brokerage arm will benefit. The asset management and private equity subsidiaries are showing great growthThe operating profit margin is very high at 83% way above industry average. Net profit margin of 40.82% in FY 13 is also high. It indicates that it has been efficient in minimizing its costs.7Jaypee InfratechYamuna Expressway toll collection has been increasing consistently. It was able to replace its high cost debt with low cost debt from IDBI. Although the company is in the Infrastructure industry its Debt to Equity ratio is only 1.21. The net profit margin too is 21.09% which is high as compared to industry average.It has the right to develop 25 mn sqmt of land along Yamuna Expressway. Development of integrated townships along the Yamuna expressway is a huge opportunity which is being leveraged.Healthcare is high growth sector and the company started a subsidiary Jaypee Healthcare, which was incorporated in 2012. Once the 504 bed multi speciality hospital commences its operations, it would be a booster for Jaypee's revenues.8Indraprastha GasStrong foothold in Delhi NCR region and gaining presence elsewhere too. Govt. decision to double the gas pipeline in the country is a boostCNG segment growing at 11% CAGR for the past four years; PNG emerging as the high growth segment growing at a pace of 46% CAGRHealthy valuation ratios with ROE 20%,PE of 12.69Blue StarAmalgamation with its subsidiaries BSDEL and BSEML expected to increase in operational efficiencyLarge order book expected in the coming quarter; previous year will be cleared in the coming quarterThe companys Electro Mechanical Projects and Packaged Air-conditioning Systems (EMPPAC) division, which contributes ~57 percent to total revenues, will benefit from an expected revival in the economy as the division caters mainly to institutional/commercial clients.10IFB IndustriesAddition of AC's in the appliances product line expected to boost toplineHigh beta - 1.8 ; Low P/E 28 when compared to industy P/E of 41Margins grew 122% in the previous quarter; a large client base expected to show a good growth in the upcoming fiscal
Batch DetailsRoll No.NameBatch No.C016Kriti Goyal8C018Rahul GuptaC022Rohan JainC024Ashwini KarkeraC033Ajit NayakC037Jay Parikh
Closing Price-Week 2Batch Number-0Name of the Company-Week 125th July, 2014 Closing PriceNumber of stocksPortfolio ValueName of the Company-Week 225th July, 2014 Closing PriceNumber of StocksPortfolio Value
1DB Corp323.1309.4599984.53DB Corp323.1309.4599984.532Marksons Pharma 33.73012.05101506.02Marksons Pharma 33.73012.05101506.023Divi's Lab1498.166.80100073.48Divi's Lab1498.166.80100073.484Natco Pharma1095.891.42100178.27Natco Pharma1095.891.42100178.275J.K. Cement383.7252.2496783.96J.K. Cement383.7252.2496783.966Motilal Oswal Financial Services231.8406.5094227.64JK Lakhsmi Cement220.9426.5694227.647Jaypee Infratech33.22695.4289487.87Maruti Suzuki2509.335.6689487.878Indraprastha Gas370.95267.6799290.69Indraprastha Gas370.95267.6799290.699Blue Star293327.2895892.65Unichem Laboratories207.55462.0295892.6510IFB Industries155.8658.76102635.05IFB Industries155.8658.76102635.05Total980060.16Total980060.16
Reason-Week 2Batch Number-8Name of the CompanyReason 1Reason 2Reason 3
1DB CorpMedia Industry is estimated to growth at a rate of over 15.2% CAGR due to digitization and high preferance of local content in print media. DB Corp is the market leader in this with a strong distribution network. To put things in perspective, DB Corp's Gujarati Edition has been launched in Mumbai thereby boosting the sales in the regionThe company's Q1FY15 results were better than broker estimates so there is a very positive sentiment among investorsIt is a regional player and its popularity enables it to command a premium over national players (Due to this popularity it has the ability to take price hikes). DB Corp operates in 4 languages2Marksons Pharma Company has recently received ANDAs approval from US FDA and are in the processof approval for more products giving it more access to US market.New products launched in FY12 and FY13 generated revenues of Rs 274mn in FY13.We expect the new products to drive future growth of the company.Billions of US$ worth of drugs going off patent each year in US. Marrksons Pharma is tieing up with multinationals, generic companies and distributors for the distribution of its products in the US.3Divi's LabIncreased production due to recent capacity augmentation program at their DSN SEZ plant.Expected 30% growth in the revenues and a 53% surge in the net profit of the company in Q1FY2015 which is better than the industry average rate.Low P/E 22.6 when compared to industy P/E of 27; recent 1000% dividend to shareholders is a being seen as huge positive4Indraprastha GasStrong foothold in Delhi NCR region and gaining presence elsewhere too. Govt. decision to double the gas pipeline in the country is a boostCNG segment growing at 11% CAGR for the past four years; PNG emerging as the high growth segment growing at a pace of 46% CAGRHealthy valuation ratios with ROE 20%,PE of 12.65Natco PharmaNatco Pharmarecently received tentative approval for its 6 drugs including Oseltamivir, Glatiramer etc. and have a strong product pipeline for next 5 years which promises sustainable growth.Started expansion in to new geographies like China, Brazil, Singapore etc. leading to a bigger and growing market for its products.Recently, Bombay High Court upheld the compulsory license granted to Natco Pharma on Nexavar of Bayer's patented kidney cancer drug which boosted Natco's business. In another case, Supreme Court Chief Justice Roberts has denied Teva's application for an injunction seeking to prevent launch of a generic version of Copaxone which furhter benefitted Natco Pharma.6J.K. CementStrong 22%/43% and 10%/28% yoy growth in white cement/wall putty in FY 13 /FY 14 increased market share. Also it has 13% CAGR in EPS for last 5 years and a Beta of 1.15UAE white cement project launched. JK Cements 0.6m-ton plant in Fujairah, the UAE, was fully operational in Mar 2014. It is expected to operate at ~50 percent utilisation in FY15 and gradually increase.Increase in capacity. Rajasthan project to boost grey cement growth. Grey cement over FY11-14 had recorded a meagre 2 percent CAGR due to capacity limitations at the North plant and subdued demand in the South-West. The new 3m-ton grey cement project in Rajasthan coupled with improved demand in South-West is expected to result in a 17 percent volume CAGR over FY14-17. Infrastructure requirements, real estate boom will increase demand for cement.7J K Lakshmi CementIt has been to minimze its cost in different areas. It has reduced the power consumption per MT of cement by 9%. It has reduced the fuel consumption per MT of cement by 5% in last 5 years. It has reduced the cost of debt on long term financing through annual resetting Infrastructure sector is a booming sector and favourable policies by the government will increase funding to this sector and thus help cement business to grow. Additionally, prices of cement have increased by 10% which will be reflected in the profits and revenues of the companyCompany's greenfield project of 27 lakh ton at Durg in Chattisgarh is going to start its operations in Q3 FY 15 which will lead to growth in revenues and thus profitability. Other projects such as Kiln project, Jhajjar expansion started its operations in 20148Maruti SuzukiThe four wheeler industry especially Maruti is posting very strong volumes. This has helped it increase its revenues and profits. The EPS of the company has increased at a CAGR of 17% from 2010 to 2014The cash from operating activities has been increasing manifold which is a good sign of a healthy company. The Debt to Equity ratio of the company is 0.07 which is very low as compared to the peers. The inventory turnover ratio is also low which justifies that they are managing their production effectively.The budget has increased the tax slabs and hence the disposable incomes of the consumers has increased. This will increase spending on automobiles and luxurious items. 9Unichem LaboratoriesRevenue grew by 9.6 % year on year which was driven by strong export revenues. Export formulation will be key growth driver for the company. The EBITDA margins are 15% which reduced because of new pricing policy which has affected the domestic portfolio.The domestic API business has grown 81% Year on Year. The company has acquired one API facility in Maharashtra whose effects will be seen on quarterly results in Q3 or Q4 FY15The domestic business has been hit due to new pricing policy. The management has strategically focused its attention on international markets and hence this will have a positive impact on the profitability. Also the Medical representative productivity is low and company has shifted its focus on improving the MR productivity which is also a positive sign10IFB IndustriesAddition of AC's in the appliances product line expected to boost toplineHigh beta - 1.8 ; Low P/E 28 when compared to industy P/E of 41Margins grew 122% in the previous quarter; a large client base expected to show a good growth in the upcoming fiscalName of the Company exited after week 1ReasonsJaypee InfratechNet profit of Jaypee Infratech declined 43.27% to Rs 45.96 crore in the quarter ended June 2014 as against Rs 81.01 crore during the previous quarter ended June 2013. This declined results is against the expected performanceThe sales were supposed to increase due to better toll collection and increased selling of houses through the Yamuna Expressway. However the economic activity has not provided that impetus resulting in declined sales of 8% Q-O_Q basisWe wanted to diversify our portfolio to risk in our portfolio and hence we had to remove Jaypee Infratech which was resulting in higher correlationBlueStarCompany performance was expected to outperform due to the merger. The efficiency hasn't increased as expectedThe scenario of the company would be clear once the quarterly results are out and there will be more clarity on the growth of the companyWe wanted to diversify our portfolio to risk in our portfolio and hence we had to remove Bluestar which was resulting in higher correlation. Consumer durable was changed to Maruti Suzuki a large cap stock which would provide stable returnsMotilal Oswal Financial ServicesWe expected Motilal Oswal to outperform the Q1 results with better saales and EPS. However the company has performed as expected and hence we expect profit booking for next few daysMarket sentiments as a whole has been on downside and we expect this to continue for another few weeks. This along with the fact that the companies expenses has increased due to lower commission margins will not be able to fetch us gain in the portfolio and hence we decided to move out of BFSI sectorAlso, the replacement of other stocks in the portfolio along with Motilal Oswal Financial Service Ltd. was resulting in higher correlation and thus we decided to add other stock to reduce the risk associated
Closing Price-Week 3Batch Number-8Name of the Company-Week 21st August, 2014 Closing PriceNumber of stocksPortfolio ValueName of the Company-Week 325th July, 2014 Closing PriceNumber of StocksPortfolio Value
DB Corp323.45309.45100092.84DB Corp323.45309.45100092.84Marksons Pharma 32.553012.0598042.17Aurobindo Pharma707.25138.6298042.17Divi's Lab1495.9566.8099929.86Divi's Lab1495.9566.8099929.86Natco Pharma1078.6591.4298610.41Hero Moto Corp2596.5537.9898610.41J.K. Cement400.75252.24101084.63J.K. Cement400.75252.24101084.63JK Lakhsmi Cement267.45426.56114084.12JK Lakhsmi Cement267.45426.56114084.12Maruti Suzuki258635.6692223.18Maruti Suzuki258635.6692223.18Indraprastha Gas380.5267.67101846.90Indraprastha Gas380.5267.67101846.90Unichem Laboratories207.75462.0295985.06Unichem Laboratories207.75462.0295985.06IFB Industries200.75658.76132246.38IFB Industries200.75658.76132246.38Total1034145.54Total1034145.54
Reason-Week 3Batch Number-8Name of the CompanyReason 1Reason 2Reason 3
1DB CorpMedia Industry is estimated to growth at a rate of over 15.2% CAGR due to digitization and high preferance of local content in print media. DB Corp is the market leader in this with a strong distribution network. To put things in perspective, DB Corp's Gujarati Edition has been launched in Mumbai thereby boosting the sales in the regionThe company's Q1FY15 results were better than broker estimates so there is a very positive sentiment among investorsIt is a regional player and its popularity enables it to command a premium over national players (Due to this popularity it has the ability to take price hikes). DB Corp operates in 4 languages2Hero Moto CorpTwo-wheeler is the only segment in the Indian Automotive industry which is likely to report 10-12% volume growth in H1FY15 as against flat to declining sales for passenger cars and CVs, respectively. Strong product portfolio and new launches of Splendor iSmart including the new Xtreme, Karizma and ZMR are driving volumes across marketsHMCL has reported a 8.67 percent increase in its total sales at 5,29,862 units in July 2014. It had sold 4,87,545 units in the same month last year. With thr Q1 results expected on 5th August, the stock looks a bagger.HMCL has gained 2.90% market share at the cost of 4.9% market share loss of Bajaj Auto in the motorcycle segment.Hero MotoCorp become the first Indian two-wheeler maker to have a manufacturing facility in Latin America, where it has set up its wholly-owned subsidiary in Colombia HMCL Colombia SAS, strengthening the latin american market.3Divi's LabIncreased production due to recent capacity augmentation program at their DSN SEZ plant.Expected 30% growth in the revenues and a 53% surge in the net profit of the company in Q1FY2015 which is better than the industry average rate.Low P/E 22.6 when compared to industy P/E of 27; recent 1000% dividend to shareholders is a being seen as huge positive4Indraprastha GasStrong foothold in Delhi NCR region and gaining presence elsewhere too. Govt. decision to double the gas pipeline in the country is a boostCNG segment growing at 11% CAGR for the past four years; PNG emerging as the high growth segment growing at a pace of 46% CAGRHealthy valuation ratios with ROE 20%,PE of 12.65Aurobindo PharmaAurobindo Pharma has shown robust revenue growth led by a strong US pipeline. Recent acquision of Actavis is expected to drive revenues to 24% CAGR over the next 3 years. A strong US pipeline (170 pending ANDAs) and launches in low-competition segment would scale-up the US business (16 percent CAGR).Backward integration plans in India and focus on product mix would result in greater scale and profitability. 250 new product launches (1200+ currently) is expected to drive the margins to around 13-15% in next 4 yearsIs among one of seven global companies that have signed sub-licensing agreement with UN backed medical licencsing pool for the manufacture of generic drugs -atazanavir and dolutegravir6J.K. CementStrong 22%/43% and 10%/28% yoy growth in white cement/wall putty in FY 13 /FY 14 increased market share. Also it has 13% CAGR in EPS for last 5 years and a Beta of 1.15UAE white cement project launched. JK Cements 0.6m-ton plant in Fujairah, the UAE, was fully operational in Mar 2014. It is expected to operate at ~50 percent utilisation in FY15 and gradually increase.Increase in capacity. Rajasthan project to boost grey cement growth. Grey cement over FY11-14 had recorded a meagre 2 percent CAGR due to capacity limitations at the North plant and subdued demand in the South-West. The new 3m-ton grey cement project in Rajasthan coupled with improved demand in South-West is expected to result in a 17 percent volume CAGR over FY14-17. Infrastructure requirements, real estate boom will increase demand for cement.7J K Lakshmi CementIt has been to minimze its cost in different areas. It has reduced the power consumption per MT of cement by 9%. It has reduced the fuel consumption per MT of cement by 5% in last 5 years. It has reduced the cost of debt on long term financing through annual resetting Infrastructure sector is a booming sector and favourable policies by the government will increase funding to this sector and thus help cement business to grow. Additionally, prices of cement have increased by 10% which will be reflected in the profits and revenues of the companyCompany's greenfield project of 27 lakh ton at Durg in Chattisgarh is going to start its operations in Q3 FY 15 which will lead to growth in revenues and thus profitability. Other projects such as Kiln project, Jhajjar expansion started its operations in 20148Maruti SuzukiThe four wheeler industry especially Maruti is posting very strong volumes. This has helped it increase its revenues and profits. The EPS of the company has increased at a CAGR of 17% from 2010 to 2014The cash from operating activities has been increasing manifold which is a good sign of a healthy company. The Debt to Equity ratio of the company is 0.07 which is very low as compared to the peers. The inventory turnover ratio is also low which justifies that they are managing their production effectively.The budget has increased the tax slabs and hence the disposable incomes of the consumers has increased. This will increase spending on automobiles and luxurious items. 9Unichem LaboratoriesRevenue grew by 9.6 % year on year which was driven by strong export revenues. Export formulation will be key growth driver for the company. The EBITDA margins are 15% which reduced because of new pricing policy which has affected the domestic portfolio.The domestic API business has grown 81% Year on Year. The company has acquired one API facility in Maharashtra whose effects will be seen on quarterly results in Q3 or Q4 FY15The domestic business has been hit due to new pricing policy. The management has strategically focused its attention on international markets and hence this will have a positive impact on the profitability. Also the Medical representative productivity is low and company has shifted its focus on improving the MR productivity which is also a positive sign10IFB IndustriesAddition of AC's in the appliances product line expected to boost toplineHigh beta - 1.8 ; Low P/E 28 when compared to industy P/E of 41Margins grew 122% in the previous quarter; a large client base expected to show a good growth in the upcoming fiscalName of the Company exited after week 2ReasonsNatco PharmaThe portfolio was heavily weighed in favour of Pharma, and we felt the need to remove this overdependence and diversify our portfolio.The stock had gained on the recent Bombay High Court ruling upholing the license granted to Pharma. The stock has shown signs of correcting itself, the muted performance of Pharma last week also helped our decision.Markets have begun correcting in the last week with SENSEX dropping by 2.5%, and the downward momentum is expected to continue next week too. Underperforming stocks had to be removed.Marksans PharmaThe portfolio was heavily weighed in favour of Pharma, and we felt the need to remove this overdependence and diversify our portfolio.The scenario of the company would be clear once the quarterly results are out and there will be more clarity on the growth of the companyMarkets have begun correcting in the last week with SENSEX dropping by 2.5%, and the downward momentum is expected to continue next week too. Underperforming stocks had to be removed.
Closing Price-Week 4Batch Number-8Name of the Company-Week 28th August, 2014 Closing PriceNumber of stocksPortfolio ValueName of the Company-Week 38th August, 2014 Closing PriceNumber of StocksPortfolio Value
1DB Corp322.05309.4599659.60Sanofi India3116.2531.9899659.603119.899773.13199843672Aurobindo Pharma722.15138.62100107.67Aurobindo Pharma722.15138.62100107.67767.2106352.7066910273Divi's Lab1500.866.80100253.84Divi's Lab1500.866.80100253.841460.997588.51035404144Hero Moto Corp2591.7537.9898428.12Hero Moto Corp2591.7537.9898428.122510.5595344.34991057225J.K. Cement421.65252.24106356.41J.K. Cement421.65252.24106356.41484.7122260.0580148826JK Lakshmi Cement260.25426.56111012.87Godrej327339.49111012.87333113049.8076331087Maruti Suzuki2622.635.6693528.43Maruti Suzuki2622.635.6693528.432666.5595095.79619878748Indraprastha Gas350.9267.6793923.98Astra Microwave133.55703.2993923.98131.5592517.40880918619Unichem Laboratories214.2462.0298965.10Unichem Laboratories214.2462.0298965.10211.397625.234849652210IFB Industries193.75658.76127635.05Lupin1160.45109.99127635.051183.4130159.260261526Total1029871.08Total1029871.081049766.26472122
4.9766264721
151662.2516556291150066.225165563
100000
Reason-Week 4Batch Number-8Name of the CompanyReason 1Reason 2Reason 3
1Sanofi IndiaRecently, Sanofi india inked a marketing & distribution pact with Emcure for cancer drugs, which will further intensify its sales in India. The Pharma industry has called for a dialogue with Govt. authorities rather than a Court battle over price control issue, which is being seen as a positive sign by the market.Companies have seen a correction in their stock prices this week, however Sanofi has remained positive indicating its strong fundamentals.The stock is currently trading underpriced with it P/E ratio below than the pharma industry average of 27.35. One of the value stock in pharma sector2Hero Moto CorpTwo-wheeler is the only segment in the Indian Automotive industry which is likely to report 10-12% volume growth in H1FY15 as against flat to declining sales for passenger cars and CVs, respectively. Strong product portfolio and new launches of Splendor iSmart including the new Xtreme, Karizma and ZMR are driving volumes across marketsHMCL has reported a 8.67 percent increase in its total sales at 5,29,862 units in July 2014. It had sold 4,87,545 units in the same month last year. With thr Q1 results expected on 5th August, the stock looks a bagger.HMCL has gained 2.90% market share at the cost of 4.9% market share loss of Bajaj Auto in the motorcycle segment.Hero MotoCorp become the first Indian two-wheeler maker to have a manufacturing facility in Latin America, where it has set up its wholly-owned subsidiary in Colombia HMCL Colombia SAS, strengthening the latin american market.3Divi's LabIncreased production due to recent capacity augmentation program at their DSN SEZ plant.Expected 30% growth in the revenues and a 53% surge in the net profit of the company in Q1FY2015 which is better than the industry average rate.Low P/E 22.6 when compared to industy P/E of 27; recent 1000% dividend to shareholders is a being seen as huge positive4LupinLupin owns a healthy product pipeline for its US business (200 ANDAs filed, 103 approved and 72 launches), which includes some limited competition products to take care of sustained sales growth with abou 20% CAGR for the next four or five years. Lupinhas inked a marketing pact with South Korea's LG Life Sciences to launch its anti-diabetes drug in India which will help the company to further strengthen its diabetes portfolio enabling it to grow deeper into the segment and fuel sales growth.In recently declared results,its EBITDA margin have reached an exceptional level of 32.2% and management has raised its full-year EBITDA margin outlook to 28-30%. We expect that the company surplus scenario is likely to continue for the next three years, which will keep its growth story in the coming quarters also.5Aurobindo PharmaAurobindo Pharma has shown robust revenue growth led by a strong US pipeline. Recent acquision of Actavis is expected to drive revenues to 24% CAGR over the next 3 years. A strong US pipeline (170 pending ANDAs) and launches in low-competition segment would scale-up the US business (16 percent CAGR).Backward integration plans in India and focus on product mix would result in greater scale and profitability. 250 new product launches (1200+ currently) is expected to drive the margins to around 13-15% in next 4 yearsIs among one of seven global companies that have signed sub-licensing agreement with UN backed medical licencsing pool for the manufacture of generic drugs -atazanavir and dolutegravir6J.K. CementStrong 22%/43% and 10%/28% yoy growth in white cement/wall putty in FY 13 /FY 14 increased market share. Also it has 13% CAGR in EPS for last 5 years and a Beta of 1.15UAE white cement project launched. JK Cements 0.6m-ton plant in Fujairah, the UAE, was fully operational in Mar 2014. It is expected to operate at ~50 percent utilisation in FY15 and gradually increase.Increase in capacity. Rajasthan project to boost grey cement growth. Grey cement over FY11-14 had recorded a meagre 2 percent CAGR due to capacity limitations at the North plant and subdued demand in the South-West. The new 3m-ton grey cement project in Rajasthan coupled with improved demand in South-West is expected to result in a 17 percent volume CAGR over FY14-17. Infrastructure requirements, real estate boom will increase demand for cement.7GodrejBetter than expected Q1 results announced on 9-Aug will drive the prices upwards in short term.Strong Fundamentals coupled with high growth. Its operating profit (EBITDA) jumped 54.3 percent to Rs 125 crore in the quarter gone by and margin expanded by 110 basis points to 5.4 percent.The stock has given at Breakout at 325, The RSI is 70.10, MACD is 10.88 and William R% is 0.81 all indicating further upside for a period of 7-10 days.8Maruti SuzukiThe four wheeler industry especially Maruti is posting very strong volumes. This has helped it increase its revenues and profits. The EPS of the company has increased at a CAGR of 17% from 2010 to 2014The cash from operating activities has been increasing manifold which is a good sign of a healthy company. The Debt to Equity ratio of the company is 0.07 which is very low as compared to the peers. The inventory turnover ratio is also low which justifies that they are managing their production effectively.The budget has increased the tax slabs and hence the disposable incomes of the consumers has increased. This will increase spending on automobiles and luxurious items. 9Unichem LaboratoriesRevenue grew by 9.6 % year on year which was driven by strong export revenues. Export formulation will be key growth driver for the company. The EBITDA margins are 15% which reduced because of new pricing policy which has affected the domestic portfolio.The domestic API business has grown 81% Year on Year. The company has acquired one API facility in Maharashtra whose effects will be seen on quarterly results in Q3 or Q4 FY15The domestic business has been hit due to new pricing policy. The management has strategically focused its attention on international markets and hence this will have a positive impact on the profitability. Also the Medical representative productivity is low and company has shifted its focus on improving the MR productivity which is also a positive sign10Astra MicrowaveApproval of increase in FDI limit in defence to 49% on ThursdayIt has a strong book order with contribution from Exports at Rs3,800mn, Defence at Rs3,940mn, Space at Rs280mn and Metrological & Telecom at Rs110mn, which guarantees strong growth in its revenues.Astra Micros Net sales rose to Rs.1,874 mn and Net profit stood at Rs.191mn for Q1FY15, as against the guidance of Rs.2,000mn in Net sales and Rs.250mn in Net profit. This is leading to a start of bull run on stocks in the market.Name of the Company exited after week 2ReasonsIFB industriesAfter giving supernormal returns for the past 3 weeks we are exiting this stock as it has began correctingThe Q1 results has been factored in the stock price movements and is now moving past itJK Lakshmi CementJK Lakshmi has given us the expected returns after its strong quaterly resultsWe wanted to reduce cement stocks in our portfolio because of the volatality the market is undergoing this week and we believe it to continue next weekDB CorpWe decided to move out of media sector as the sector is not giving us expected results in short termThe stock has high correlation with the index and we feel that the market will continue to correct in this weekIndraprastha GasWe decided to move out of energy sector because of the volatality the market is undergoing this week and we believe it to continue next week; Quaterly results is above estimate but primarily due to lower depreciation at INR368m (-31% YoY, -34% QoQ) on a lower rate as per Companies Act 2013 else the performance is as per expectation and already reflects in the stock price; Volumes below estimate: CNG volumes were below estimates due to stoppage of offtake by some industrial consumers.
