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Soccer World Cup 2018 is gradually coming to an end. But not before a lot of action has happened on the pitch. It has left many losers and some winners and ultimately, only one team will be crowned the champions! So, far so good. While it is all very well to watch the multiple thrills-per-second action, the same kind of focus should also be applied elsewhere - on financial planning. It can decide the fate of your future, so it is much more critical. Far from that eventuality, people in fact often complain of paucity of time when it comes to financial planning. If spending time on your passion is important, so is your future. So, here is an attempt to catch football fans' attention regarding financial planning:&nbsp;

Forward/Striker

Forwards are the players who remain upfront, aggressively playing and scoring goals for the team. They might be the most important part of the team in football, but in the world of finance that is not the case! Don't be a 'Forward' in financial planning. Do not try to make money aggressively in the stock market. Prudent approach would be to go for proper asset allocation i.e. investing proportionately in equity and debt, while keeping some cash handy.&nbsp;

Mid-fielders&nbsp;

Midfielders are generally positioned on the field between their team's defenders and forwards. They can attack and defend too and at the same time they also try to control various aspects of the game to favour their team. In financial planning, being a mid-fielder means investing in some balanced funds. These funds are the combination of midcap and largecap stocks with some proportion of debt investment. Balanced funds keep the balance between equity and debt asset classes steady.

Defenders&nbsp;

A defender's primary role is to prevent the opposing team from scoring goals. They are the 'protectors'. In the world of finance, defenders are such financial instruments that manage your risks, protecting you from unforeseen events. These financial instruments include life insurance, term plans, mediclaim etc. Investing in gold and fixed income plans also fall under this category.

Fouls and misconduct

While in football, referee penalises the player who interferes with the active play of the game, fouls in stock market may cost you dearly. The best way to invest in stock market is to do it via systemic investment plan (SIP). One should never try to time the market. It is close to impossible for even most assiduous investors to buy at low points and sell at high point. Therefore, one should always invest in a periodic manner via SIPs lest a sudden foul (crash), erodes your money by a good margin.&nbsp;

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Goal-oriented approach

The most striking similarity between football and financial planning is goal-oriented approach to play and invest, respectively. As in football, players keep looking for striking goals, investors must also aim at meeting their financial goals when they plan their finances to meet their current and future needs.

If you play the game right, you will end up rich -&nbsp; a winner!&nbsp;

While it is all very well to watch the multiple thrills-per-second action, the same kind of focus should also be applied elsewhere - on financial planning. It can decide the fate of your future, so it is much more critical.


How to get rich: These footballing lessons on financial planning will make you wealthy

Rakesh Jhunjhunwala is an ace investor and he also has a favourite stock that has brought him great success over the years. However, there are good times and then there are bad ones. So, what should one do in a changing scenario? Titan Company, a widely tracked stock on Dalal Street, has shed 11 per cent from its all-time high hit on April 18, 2018. Recently, Jhunjhunwala sold 1.25 crore shares, or 1.4 per cent stake, in the jeweller between May 21 and June 28. However, experts do not see it as a big concern, and sees up to 20 per cent upside on the counter against Monday's close.&nbsp;&nbsp;

"Titan stock is down 16 per cent from the recent peak and has underperformed the Sensex by 18 per cent over the past three months. We think this offers a compelling entry point for longterm investors," said global brokerage Morgan Stanley in a research note dated July 1, upgrading the stock to 'overweight'.&nbsp;&nbsp;

As Titan comprises major portion (over 70 per cent) of Jhunjhunwala's portfolio, the big bull trimming his stakes in his favourite stock had to send alarm bells, especially because Jhunjhunwala offloaded stakes just a couple of days after he grilled the Titan management with some hard hitting questions.

Jhunjhunwala grills management

During Titan's conference call held in May, Rakesh jhunjhunwala highlighted that the company's margins from watches in the March quarter slipped to 7.11 per cent against 15.5 per cent reported in the December quarter. "Since there was hardly a drop of 8 per cent and the margins were up by 7 per cent, was there some one-time expense correction mentioned?," asked Jhunjhunwala.&nbsp;

"We had one exceptional thing in Q4, which is the stockists, we corrected them, we sort of rationalised it, this is one-time," the management clarified, adding there was no cost involved because they reversed the sale. "We took back stocks from RS, because we are consolidating them into other RS, we did not sell to them and therefore there is a drop in sales," they explained.&nbsp; 
&nbsp; 
Titan Company had written off Rs 75 crores in the March quarter for an investment it made in Favre Leuba. Jhunjhunwala checked with the management as to how much the company proposes to write off in the coming quarters. The management said it does not expect to write off any further.

While management did clear his doubts, the ace investor still pared his holding in Titan to 6.54 crore shares, or 7.37 per cent stake, from 7.79 crore shares, or 8.78 per cent stake, as of May 21, 2018.&nbsp;

Should you buy?

However, experts caution retail investors should not get influenced by the investment strategies of big investors like Rakesh Jhunjhunwala.

If brokerage Ambit Capital is to be believed, Titan is set for a long stint of high growth driven by wedding jewellery (32 per cent CAGR) over FY18-22E, resulting in doubling of sales per square foot. The brokerages sees earnings CAGR of 33 per cent over FY18-23E as wedding season, scope to add new stores and GST-led formalisation will drive growth in the near to long-term.&nbsp;

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Although Titan still commands punchy valuations (44x FY20E EPS), Ambit has a buy rating on the stock with a target price of Rs 1,030.&nbsp;

For Morgan Stanley, Titan remains one of its favorite plays on urban discretionary consumption growth in India.

"Risk reward now appears favorable at current valuations. We upgrade Titan to OW. We roll forward our residual income model to June 2019 to derive our revised target price of Rs1,080, implying a 29 per cent upside from the current levels," said Morgan Stanley in a research note. Target price of Rs 1,080 against Monday's closing denotes 20.39 per cent upside on the stock.&nbsp;

"Currently,F2020e P/E would be 37x for Titan. This should be viewed in the context of 29% F2018-20e earnings CAGRs, implyingF20e PEG of ~1.3x," the global brokerage added.

"Titan stock is down 16 per cent from the recent peak and has underperformed the Sensex by 18 per cent over the past three months. We think this offers a compelling entry point for longterm investors," said global brokerage Morgan Stanley.


On Rakesh Jhunjhunwala's favourite stock, here is what Morgan Stanley has done; should you buy?

One year since Goods and Services Tax regime came into being, and even government officials would agree India’s greatest tax reform in over a decade is far from being perfect. Despite all rollbacks and changes in the last twelve months, it has not achieved what it should have i.e. the rationalisation of tax rates, simplified returns filing procedure, checks and balances against tax evasion tactics and leveraging technology for formalisation of economy. However, not all could be written off as bad.

While GST may not have evolved into a one-nation-one-tax, it did abolish string of taxes that we couldn't have counted even on the fingers of both hands.

“Numerous cess (+23) and taxes (+15) have resulted into one single platform of GST and tax rates of 0-5-12-18 and 28 per cent. As we look back on GST’s last one year, the hiccups that came along were widely and broadly expected. These hiccups have been fixed and recent introductions such as e-waybill are something that will attract much larger base,” said Mustafa Nadeem, CEO, Epic Research.

According to Deepak Jasani, Head - retail research at HDFC securities, nationwide one tax and market, beginning of widening of tax base, faster movement of goods and lower logistics costs are some of the key positives that GST brought in.

Besides, GST turned out to be effective and efficient broadly from the standpoint of various stakeholders such as consumers, business persons and government.

“The GST benefited consumers without showing any initial inflationary trend, unlike global experience, for industry, the subsuming of multiple central and state levies into one GST along with seamless input-tax credit has been a boon and for the government, GST regime has resulted into significant increase in the tax base and tax collections thereof,” said Sachin Vasudeva, Senior Partner at SCV &amp; Co. LLP.

Talking about tax collections, GST collections during financial year 2017-2018 stood at Rs 7.19 lakh crore. While collections were strong in the first three months, they tapered off post October 2017 before touching an all-time high monthly collection of Rs 1.03 lakh crore in April 2018. Tax collections in May stood at Rs 94,016 crore.

“Going forward the anti-evasion is being put on the table and it will further strengthen and improve the numbers,” believes Nadeem.

As we move into the second year of GST, taking a look at some of the low points of last twelve months is prudent to rectify them, going forward.

“Under GST, businesses were saddled with compliance burden which was in stark contrast to ‘ease of doing business’ being propagated by the government, the number of amendments and tweaking in law by way of circulars, notifications, press release, clarifications, orders etc added to the complexity of GST law,” said Vasudeva of SCV &amp; Co. LLP.

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“Carrying forward the legacy of interpretation and classification disputes were a headache too, which were further worsened by contrary advance rulings pronounced by Authority for Advance Rulings of various states,” he added.

To avoid the classification disputes, the government must work upon the cumbersome procedural requirements and abolishing the existing multiple tax rate structure.&nbsp;

The government touted the GST as Good and Simple Tax. However, in its present avatar, GST is only a Good but not a Simple Tax. “If the government actually wants to make GST into a Good and Simple Tax then it should look at making the law simpler in terms of the compliance burden and start trusting the tax payers,” said Vasudev.

GST may not have evolved into a one-nation-one-tax, it did abolish string of taxes that we couldn't have counted even on the fingers of both hands.


One year of GST: The hits and the misses, and what lies ahead

One year of GST: India’s one-year tryst with Goods and Services Tax (GST) has received mixed response from experts and stakeholders. If there were some operational challenges, businesses accrued some benefits too. The initial transition phase was full of anxieties, but the government extended full support to ensure smooth transition.&nbsp;

“With the extension of several timelines during initial months, relaxation of compliance keeping it limited to only GSTR3B and GSTR1 filings, reduction in prices on account of anti-profiteering rules benefiting the end users, it seems that the people of India have accepted GST on a positive note,” said Sanjay Agarwal, Partner, TASS Advisors.

With monsoon session around the corner, Agarwal expects some more relaxations in the GST rules that will make it more user-friendly, improving business appetite in India,” he added.&nbsp;

Nikhil Kamath, Co-founder, Zerodha also although acknowledged the GST has brought in with it a lot of short term hardships, but the long term benefits for the economy are definitely in store. “Going forward, a simpler tax regime will bring an added layer of transparency and will make it harder for tax invaders,” he said.&nbsp;

On completing one year of GST, let’s take a look at sectors which benefited most out of GST, and the ones where improvement is still needed:

Negative impact

Real estate

According to Kamath of Zerodha, GST tax would swell negative remarks around real-estate sector and will increase the cost of the new homes by 8 per cent, which in turn may cease the demand by 12 per cent.

Building products: tiles, cables, wires, plywood, laminates etc&nbsp;

According to Edelweiss Securities, there was a significant increase in unorganised trade in these segments due to free movement of goods and lack of surveillance measures. However initial e-way bill implementation impact on unorganised trade is encouraging.

Cement space:

Cement sector is still witnessing subdued demand despite the overall need due to various large scale projects. “The online system is appreciable but the online availability to each and every business is something that demands the infrastructure to be PAN India as adaptability will take time,” said Mustafa Nadeem, CEO, Epic Research.

Neutral impact:

Electrical equipment and appliances: Fans, lighting, pumps

So far there have been no major changes in fans and lighting segment, except for marginal increase in organised player market share in fans segment - however not material, said Edelweiss.

Apparels industry:

No major change was witnessed in apparels industry wherein 70 per cent market is dominated by unorganised players.&nbsp;&nbsp;

Positive impact:

Plastic products (Pipes, furniture):&nbsp;

GST has led to higher growth for organised players as the source of raw material is tracked leading to decline in tax evasion.

Jewellery: Significant shift was witnessed towards organised players led by GST, demonetisation and other regulatory measures adopted by the government.

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Batteries- after market:&nbsp;

Signs of shift of trade from unorganised to organised market was visible post GST in aftermarket segment.

FMCG

A lot of FMCG companies have managed to pass over the benefits to end consumers by way of price cut or additional grammage, said Deepak Jasani, Head of Retail Research, HDFC Securities.

One year of GST: A tumultuous ride - Sectoral impact

The Indian rupee sank to a lifetime low of 69.10 against the US dollar by plunging 49 paise on Thursday as a combination of factors from rising crude oil prices, stronger dollar to widening current account deficit put pressure on the rupee. At the interbank foreign exchange market, the rupee opened at 68.87 a dollar against 68.61 previously and sank to 69.10 in morning deals, falling 49 paise.&nbsp;

"Dollar-Rupee pair finally achieved, what it could not for past five years. This was the fourth attempt and it succeeded," said Kotak Securities on rupee breaching the 69 mark.

The brokerage believes as long as rupee maintains 68.50, rupee's bull trend will remain intact, but a close below 68.50 may take it to 70 mark against dollar.

"Technically, USD-INR is still in a bull trend as long as 68.50 is intact on Spot. If the pair close below 68.50, we can assume that another top is in place and then we will play for lower levels. As long as above 68.50, buy on decline. Above 69.00, we can see the pair aim for 70.00 on spot," said Kotak Securities.&nbsp;

Here are 5 reasons why Indian rupee is under pressure against US dollar:&nbsp;

1) Trade war between US and China: Mid-term polls in US during November 2018 are fast approaching, and with this, US president Donald Trump has raised his rhetoric on trade war, which is an election issue in America. "China is caught right in the middle of the trade fiasco, which is causing capital flight in China. As a result, Chinese yuan is spiraling lower and that is bad news for rupee too, as weaker yuan, in parity terms drags down INR too," said Kotak Securities in its forex insight note.&nbsp;

2) Higher oil prices: Global oil prices have climbed after the US asked its allies to end all imports of Iranian oil by November. Concerns over supply disruptions in Libya and Canada also pushed prices higher. Brent crude futures were trading above $77 per barrel on Thursday.

Higher oil prices do not bode well for Indian currency as oil refiners' rupee demand increase significantly. India imports 80 per cent of its oil demand.&nbsp;

3) Strong US economy: The US economy is coming out of woods with the US Federal Reserve gradually settling in a high inflation rate era. The central bank raised interest rates by 25 basis points in its last monetary policy meeting earlier in the month. The US Fed is expected to continue with hiking rates and lower reserves in the system. That is a bad news for emerging market currencies, including Rupee.

4) Political risk in a pre-election year: An election year in the country always throws jitters in the stock and currency market. This is not going to go away soon, as elections are still a year out. Besides, financial conditions are tigthening in the economy as RBI has begun the rate hike cycle, which is bad for domestic equity and bonds as it discourages FII inflows and makes rupee weak.

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5) Non-deliverable forwards: Non-deliverable forwards of rupee are traded after the domestic forex market closes at 5 pm. NDF rupee contracts are traded in places like New York, Singapore and Dubai where traders and firms take positions in rupee-dollar to hedge their exposures, as well as make profits trading on different prices, also known as arbitrage.&nbsp;&nbsp;

KN Dey, managing partner at forex advisory firm United Financial although acknowledged the fundamentals are against the rupee's strength, but said fundamentals are not so bad that is pushes the currency beyond crucial 70 mark.&nbsp; "The recent fall in the rupee is purely on account of its weakness in NDF market because oil prices or the dollar index have not shown any dramatic move that they put heavy selling pressure on the rupee," he said.&nbsp;

Rupee's NDF contracts had hit 69.20 against dollar overnight.&nbsp;&nbsp;

Indian rupee plunges to lifetime low of 69.10 vs US dollar; 5 reasons why 

The Indian rupee depreciated by 44 paise to breach its crucial 69 level against US dollar for the first time ever. The heavy sell-off came on the back off stronger dollar and higher oil prices, leading to fears of wider current account deficit and foreign portfolio outflows.

The rupee fell to 69.07 in intraday trade compared to yesterday’s close of 68.63. The local currency had hits its previous all-time intraday low on November 24, 2016 at 68.86 against the dollar. The all-time closing low stands at 68.82, breached on August 28, 2013.

On a year-to-date basis, the rupee has shed 8.1 per cent, the worst performer among Asian currencies.

Experts remain hopeful the Reserve Bank of India (RBI) would step in to prevent further losses in the currency.

“We expect the RBI may intervene aggressively around 68.80-68.85 levels to defend the currency. But if 68.86 level is taken out then we may see sharp depreciation in the rupee in coming sessions and it may move towards 70.00-70.50 levels immediately," said Rushabh Maru, Research Analyst, Anand Rathi Commodities after rupee closed at 19-month low in the previous session.&nbsp;

The expert believes rising crude oil prices, trade war concerns, strength in the dollar index and weakness in the emerging market currencies are key factors for the rupee depreciation. Steady capital outflows and worsening domestic macroeconomic fundamentals are also contributing to rupee depreciation.&nbsp;

"Exporters are reluctant to hedge their exposure in the current market as the rupee is weakening every day. On the other hand, 68.00 levels is very good support for the USD-INR. We are seeing importers buying on every dip in the USDINR,” Maru said.&nbsp;

However, KN Dey, managing partner at forex advisory firm United Financial, begs to differ. He does acknowledge the fundamentals are against the rupee's strength, but those are not so bad that the currency breaches the crucial 70 mark, he said.&nbsp;

Dey believes weakness in rupee's value in Non Deliverable Forward (NDF) market has triggered the recent sell-off in rupee. NDF rupee contracts are traded in places like New York, Singapore and Dubai where traders and firms take positions in rupee-dollar to hedge their exposures, as well as make profits trading on different prices, also known as arbitrage. These contracts are called non-deliverable because no delivery of currencies is involved. The contracts are settled by paying the difference between the NDF and spot rates.

"The recent fall in the rupee is purely on account of its weakness in NDF market because oil prices or the dollar index have not shown any dramatic move that they put heavy selling pressure on the rupee," he said.&nbsp;

Rupee's NDF contracts had hit 69.20 against dollar overnight.&nbsp;&nbsp;

The rupee fell to 69.07 in intraday trade compared to yesterday’s close of 68.63. The local currency had hits its previous all-time intraday low on November 24, 2016 at 68.86 against the dollar. The all-time closing low stands at 68.82, breached on August 28, 2013.


Indian rupee falls to all-time low; will it breach 70 vs dollar? Here is why it will not

This is a story about a company whose initial public offering (IPO) may have received a lukewarm response. However, significantly, 25 years on, the stock has made many investors crorepati. How? Had you bought 100 shares by investing Rs 9500 in its IPO in 1993, you would have accumulated Rs 5 crore by now! The growth potential of this technology company is such that experts still see strong gains on the stock for those who buy into it.&nbsp; &nbsp; &nbsp;

The company is none other than Infosys, which made its debut on Dalal Street on June 14, 1993. One share bought at Rs 95 issue price has turned into 346 shares now. So, had you picked just one share at Rs 95, you would have been sitting on profits of a whopping Rs 4.9 lakh by now. This means a compound annual growth rate (CAGR) of 36 per cent over the last 25 years.&nbsp; &nbsp;

Ironically, the company's IPO remained 'barely subscribed' when it tested waters in the primary market. As was the norm then, Enam, the merchant banker and underwriters to the offer, came forward to the company's rescue. Vallabh Bhansali, co-founder &amp; chairman, Enam group picked up the unsubscribed portion of the IPO. Over the years, Enam has made a fortune on its Infosys investment.&nbsp;

As Dalal Street wishes Happy Birthday to Infosys, global brokerage UBS Securities came out with a fresh report on Thursday maintaining a 'Buy'rating on the stock with a target price of Rs 1355 per share. The brokerage believes company's revenues are likely to be in line with guidance. It sees improved margin confidence as US hiring turned out to be less expensive than expected.&nbsp;

Goldman Sachs noted Infosys is trading at a sharp discount to TCS, despite having similar growth profile. The brokerage has a 'Buy' rating on the stock too.&nbsp;&nbsp;

The share price of the Bengaluru-based company has outperformed the market by surging 23 per cent so far in 2018. By comparison, the Sensex gained just 5 per cent.

On Wednesday, a day ahead of its silver jubilee, Infosys stock touched a record high of Rs 1,284 on the BSE, surpassing the previous high of Rs 1,278 on June 3, 2016.

"Infosys is back to life with the new and stable management. The company will return to growth trajectory with stable margins as rupee tailwinds will support future investments. We remain buyers in the stock. Robust capital allocation and buybacks provide support," said Amit Chandara, IT analyst at HDFC Securities.

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So far in last 25 years, the company has offered bonus for seven times. The stock got split once in 1999.&nbsp;

The IT major was the first Indian company to bring in employee stock options (Esops). Many of its employees became dollar millionaires in all these years.&nbsp;

The company became a trendsetter in India voluntary adopting global governance standards such as producing quaterly earnings, innovative way of recognising employees through human resource valuation reporting, and its outreach to global investors by providing financial statements in GAAPs of seven countries in their own languages, V Balakrishnan, former chief financial officer at Infosys wrote in Livemint.&nbsp;&nbsp;

Had you bought 100 shares by investing Rs 9500 in its IPO in 1993, you would have accumulated Rs 5 crore by now! The growth potential of this technology company is such that experts still see strong gains on the stock for those who buy into it.&nbsp; &nbsp; &nbsp;


Infosys celebrates silver jubilee on Dalal Street! Rs 10k invested 25 years ago have turned into Rs 5 cr

The recent rout in midcap and smallcap stocks led to up to 60 per cent fall in these counters, especially on the back of market regulator Sebi including some of them into the Additional Surveillance Mechanism (ASM) list. Another contributing factor was the restructuring of mutual fund schemes according to new Sebi norms, and even the rich valuations contributed to the recent losses.&nbsp;

The Nifty Midcap and Smallcap indices tanked up to 7 per cent in the last one month against Nifty's flat performance during the same period. Vakrangee (down 62 per cent), KSK Energy Ventures (down 58 per cent), Manpasand Beverages(down 54 per cent), IVRCL (down 52 per cent), and Arrow Greentech (down 44 per cent) were the leading losers among smallcap stocks.&nbsp;&nbsp;

"Midcaps have struggled over the last few months, resulting in their underperformance versus large-caps. Over the last 12 months, midcaps have delivered 8 per cent returns, as against 12 per cent by the Nifty. However, over the last five years, midcaps have outperformed the Nifty by 63 per cent," said brokerage Motilal Oswal Securities in a research note.&nbsp;

With this recent fall in midcap and smallcap stocks, experts believe this has given an opportunity to dip into quality stocks at lower levels as not all stocks that have suffered ASM sell-off are of bad quality. "Some of midcap and smallcap stocks witnessed hefty selling pressure due to Sebi's surveillance mechanism, but fundamentally, there is nothing wrong with these companies," said Vikas Sethi, MD, Sethi Finmart.

Sethi advised segregating the good and bad quality stocks to make money in quality midcap and smallcap counters in the next three to six months.&nbsp;
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<table class="tableizer-table">
	<thead>
		<tr class="tableizer-firstrow">
			<th>Company</th>
			<th>Returns (last one-month)</th>
			<th>PE ratio</th>
		</tr>
	</thead>
	<tbody>
		<tr>
			<td class="rtecenter">Rain Industries</td>
			<td class="rtecenter">-33%</td>
			<td class="rtecenter">9.7x</td>
		</tr>
		<tr>
			<td class="rtecenter">Avanti Feed</td>
			<td class="rtecenter">-32%</td>
			<td class="rtecenter">18.4x</td>
		</tr>
		<tr>
			<td class="rtecenter">Ajanta Pharma</td>
			<td class="rtecenter">-24%</td>
			<td class="rtecenter">17.6x</td>
		</tr>
		<tr>
			<td class="rtecenter">Eros International</td>
			<td class="rtecenter">-20%</td>
			<td class="rtecenter">5.6x</td>
		</tr>
		<tr>
			<td class="rtecenter">Gujarat Alkalies</td>
			<td class="rtecenter">-16%</td>
			<td class="rtecenter">8.5x</td>
		</tr>
		<tr>
			<td class="rtecenter">GSFC</td>
			<td class="rtecenter">-15%</td>
			<td class="rtecenter">9.5x</td>
		</tr>
		<tr>
			<td class="rtecenter">Muthooth Finance</td>
			<td class="rtecenter">-14%</td>
			<td class="rtecenter">8.6x</td>
		</tr>
		<tr>
			<td class="rtecenter">MRPL</td>
			<td class="rtecenter">-13%</td>
			<td class="rtecenter">4.6x</td>
		</tr>
		<tr>
			<td class="rtecenter">IRB Infra</td>
			<td class="rtecenter">-12%</td>
			<td class="rtecenter">9.2x</td>
		</tr>
	</tbody>
</table>

Going by data, Rain Industries, Avanti Feed, Ajanta Pharma, Eros International, Gujarat Alkalies, GSFC, Muthooth Finance, MRPL and IRB Infra, which dipped anywhere between 33 per cent to 12 per cent in the last one month, are trading at attractive valuations now. Besides, we have compiled a list of 8 stocks by two experts where decent returns could be earned.&nbsp;

Vikas Sethi, MD, Sethi Finmart

1) Tinplate Company of India

Target price: Rs 250

<ul>
	<li>Tata Group firm</li>
	<li>Metal shares are shining following robust Q4 numbers</li>
	<li>Valuations attractive</li>
</ul>

2) HIL 
&nbsp; 
Target price: Rs 2700

<ul>
	<li>Market leader in roofing and building solutions</li>
	<li>Distribution network strong</li>
	<li>Good monsoon to build rural demand</li>
	<li>HIL financials are robust</li>
</ul>

3) Graphite India

Target price: Rs 1200

Well-known firm in electrode segment 
The stock is available at cheap valuations 
New contracts being signed at higher prices&nbsp;

4) Jamna Auto

Target price: Rs 150

<ul>
	<li>The company is into supplying auto components for commercial vehicles&nbsp;</li>
	<li>9 manufacturing plants across country</li>
	<li>Big clients such as Ashok Leyland and M&amp;M</li>
</ul>

Avinash Gorakssakar, HoR, Joindre Capital

5) Excel Industries

Target: Rs 1550

<ul>
	<li>The company is into agrochemical business</li>
	<li>Agrochemical demand to boost on good business</li>
	<li>The company is debt-free</li>
</ul>

6) Himadri Speciality Chemical

Target price: Rs 160

<ul>
	<li>Market leader in coal tar pitch with 70% share</li>
	<li>The company is into advanced carbon segment too</li>
	<li>Profit grew three-fold in FY18</li>
	<li>The company is focusing on product expansion</li>
	<li>Big clients in tyre and aluminium sectors</li>
</ul>

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7) Radico Khaitan

Target price: Rs 510

<ul>
	<li>Well-known firm in liquor segment</li>
	<li>Robust sales in FY18 at Rs 6270 crore&nbsp;</li>
	<li>Net profit in FY18 came in at Rs 123 crore from Rs 80 crore (YoY)</li>
	<li>Investment in consumption stocks to be profitable going ahead</li>
</ul>

8) Man Industries

Target price: Rs 150

<ul>
	<li>The company is into pipe manufacturing</li>
	<li>The company's order book is worth Rs 1800 crore</li>
	<li>FY18 profit increased to Rs 64 crore from Rs 33 crore (YoY)</li>
	<li>The company is focusing on debt reduction</li>
</ul>

Rain Industries, Avanti Feed, Ajanta Pharma, Eros International, Gujarat Alkalies, GSFC, Muthooth Finance, MRPL and IRB Infra, which dipped anywhere between 33 per cent to 12 per cent in the last one month, are trading at attractive valuations now.


Midcap sale on Dalal Street: These 8  quality stocks have just turned cheaper

Sensex and Nifty shrugged off the rate hike by Reserve Bank of India (RBI) with the 30-share index rallying as much as 327 points post RBI policy announcement. With the big event now gone, experts believe focus will shift to global cues, even as they observed that markets are still expensive. However, consumption theme looks good, they added.&nbsp;

The Sensex ended at 35,178, up 275.67 points, while the broader Nifty50 closed at 10,684, up 91.50 points.

"The two most important things that I observed from RBI policy is i) private consumption in urban and rural India has made a comeback, and ii) output gap has narrowed i.e. capacity utilisation is at high levels, which, with the multiplier effect, will boost private investment as well," said independent market expert Ajay Bagga.

As RBI policy is over, Bagga believes market focus will shift to global cues.&nbsp;

"It's a relief that the big event is now gone. Investors will now focus on US Federal Reserve's policy review, wherein it is expected to hike rates," he said.

Market expert Anand Tandon, meanwhile, advised investors not to go whole hog on equities. "Just because market has reacted positively to the RBI policy, it doesn't mean one should quickly buy stocks. Don't forget that frontline companies are still expensive, and nobody is interested in those where valuations are cheaper as earnings visibility is yet to come in those counters."&nbsp;

The expert maintained markets are still expensive and one should not hurry into creating or churning the portfolio.&nbsp;

Motilal Oswal, Chairman &amp; MD, Motilal Oswal Securities said RBI governor Urjit Patel changed the rate little higher as at this juncture that was the best thing to do. Oswal sees Nifty hitting 11,000 in the short-term, while he advised investing into mid cap mutual funds.&nbsp;

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"India is in a situation where anything sharp can hurt economy. If we raise the Interest rates too fast and too sharp, and try tightening the money supply, it can hurt the corporate earnings, which are just about on cusp of expanding. Lowering of interest further was not the case at all as global volatility due to crude and rate tightening never offered that option," Oswal said.

&nbsp;"At current levels markets are looking little expensive but for a reason of expectations of earning momentum kicking in. We think even the mid cap correction is overdone and selectively mid-caps should start stabilizing. It would be a good idea to commit some capital into well managed mid cap mutual funds as the recovery in earnings will bring the quick buoyancy. Broad markets are currently holding well and we think have a case to move higher towards 11k Nifty mark in short term,” he added.&nbsp;

RBI monetary policy review meet: With the big event now gone, experts believe focus will shift to global cues, even as they observed that markets are still expensive. However, consumption theme looks good, they added.&nbsp;


Sensex shrugs off RBI repo rate hike, rises 275 points; this is where you can eye profits now 

After a dream run in 2017, the midcap and smallcap stocks are going through a blood bath with the BSE Smallcap and BSE Midcap indices losing 17 per cent and 14 per cent, respectively from their respective lifetime highs touched in January this year. Among individual stocks, Manpasand Beverages, CG Power, PC Jeweller, Avanti Feeds, Radico Khaitan, McLeod Russell and HDIL tanked up to a massive 35 per cent in the last one week.&nbsp;

The BSE mid-cap index and BSE small-cap index are down 12.84 per cent and 15.66 per cent respectively so far in 2018, while the Sensex is up 2.49 per cent during the same period.

Here are three reasons behind the steep fall in mid and smallcap counters:

1. Additional Surveillance Measures:&nbsp;The major reason behind the recent sell-off is Additional Surveillance Measures (ASM) imposed by market regulator Securities and Exchange Board of India (Sebi).&nbsp;&nbsp;Sebi has identified about 30 stocks in ASM list to look into their operations closely. This additional mechanism kicked off on June 1, with ASM&nbsp;stocks facing the heat.&nbsp;

Reacting to this,&nbsp;Manpasand Beverages (down 34 per cent), CG Power (down 28 per cent), Avanti Feeds (down 27 per cent), Caplin Point Lab (down 26 per cent), Aban Offshore (down 22 per cent) and PC Jeweller (down 20 per cent) tanked sharply.&nbsp;

2. Re-classification of mutual fund schemes:&nbsp;Another reason behind steep selloff is Sebi's mandate to reclassify the mutual fund schemes as per market regulator's circular. With fund managers churning their mutual fund portfolios to realign with fresh directives, many mid and smallcap stocks are facing selling pressure.

3. High valuations:&nbsp;The mid and smallcap stocks were trading at exorbitant valuations, running ahead of time for the last few quarters. Analysts believe this is the much-needed correction that we are seeing now. "Midcaps (down 6.8 per cent in May) underperformed the Nifty in May and lagged Nifty on a trailing 12 month basis (8 per cent return v/s Nifty’s 12 per cent)," said Motilal Oswal Securities in a recent report.&nbsp;&nbsp;
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<table class="tableizer-table">
	<thead>
		<tr class="tableizer-firstrow">
			<th>Company</th>
			<th>One-week return</th>
		</tr>
	</thead>
	<tbody>
		<tr>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
		</tr>
		<tr>
			<td>Manpasand Bevarages</td>
			<td>-34%</td>
		</tr>
		<tr>
			<td>CG Power</td>
			<td>-28%</td>
		</tr>
		<tr>
			<td>Avanti Feeds</td>
			<td>-27%</td>
		</tr>
		<tr>
			<td>Caplin Point Lab</td>
			<td>-26%</td>
		</tr>
		<tr>
			<td>Aban Offshore</td>
			<td>-22%</td>
		</tr>
		<tr>
			<td>PC Jeweller</td>
			<td>-22%</td>
		</tr>
		<tr>
			<td>HDIL</td>
			<td>-20%</td>
		</tr>
		<tr>
			<td>NOCIL</td>
			<td>-19%</td>
		</tr>
		<tr>
			<td>Minda Corp</td>
			<td>-18%</td>
		</tr>
		<tr>
			<td>Suzlon</td>
			<td>-17%</td>
		</tr>
		<tr>
			<td>Meghmani Organics</td>
			<td>-17%</td>
		</tr>
		<tr>
			<td>Radico Khaitan</td>
			<td>-16%</td>
		</tr>
	</tbody>
</table>

"Due to this sharp underperformance in May 2018, the premium of midcaps v/s large caps narrowed from 23 per cent to 19 per cent," added the brokerage.&nbsp;

Meanwhile, UBS Securities is underweight on smallcap and midcap stocks due to fading support at the interest rate and retail flow fronts.

“The economic growth cycle is less strong now than in historical tightening periods, and this is reflected in earnings cuts. The rise in interest rates is not counter-cyclical,” UBS Securities said in a note on Monday.

“SMIDS (small and mid caps) have started underperforming with rising interest rates recently. We expect this to remain an overhang; our UBS economist forecasts a 50bp (basis points) repo rate hike in FY19,” the report added.

“The best of local retail flows supporting SMID outperformance may be behind us, at least cyclically. Local flows follow returns, not the other way around,” the report said, adding UBS is underweight small- and mid-cap stocks as an asset class in its portfolio positioning recommendation.

UBS Securities is underweight on smallcap and midcap stocks due to fading support at the interest rate and retail flow fronts.


Bloodbath in markets: Why Manpasand Beverages, PC Jeweller, Avanti Feeds tanked in last one week

Investors in Manpasand Beverages are in trouble as the FMCG firm's share price hit the lower circuit for the third session in a row on Tuesday. The stock has been under pressure ever since the company’s auditor Deloitte Haskins &amp; Sells refused to audit the company’s March quarter results, as the company, it said, failed to provide enough details on its financials.

With a 10 per cent fall today, the&nbsp;Manpasand Beverages&nbsp;scrip has plunged 49.87 per cent to Rs 223.50 in the last seven sessions. The sharp plunge on the counter is reminiscent of the crash seen in shares of Vakrangee earlier this month. Vakrangee auditor Price Waterhouse &amp; Co too resigned 'in the absence of adequate and relevant information and explanations'. Vakrangee share price has fallen a whopping 92 per cent so far this year.

It appears Manpasand Beverages could meet the same fate. "It is another stock that is on its way to becoming something like Vakrangee, or PC Jeweller or Reliance Communications. you name it," said Mustafa Nadeem, CEO at&nbsp; Epic Research.

Deloitte resigned a day before the company was scheduled to announce its fourth quarter results.

While Manpasand Beverages called the auditor's resignation ahead of results a mere ‘coincidence’, analysts say retail investors must not look at stocks of companies where management integrity is in doubt.

“The common thing is first compliance issues and second the debt. In recent times when the market has unearthed some of the gems any company that even has an iota of concern related to Debtor Compliance are being hammered to the point that they are left with almost 90 per cent erosion of share price,” Nadeem said.

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The expert expects the stock to test Rs 150-120 mark in coming one month. "Manpasand Beverages is a completely avoid. In these kind of cases, it's purely dumping and no one cares about technicals or fundamentals. We have seen that in Vakrangee and PCJ. Any investor should get out the first chance they get. Any official statement by company or newly appointed auditors will give us that opportunity," he said.

Meanwhile, Atlanta, a construction and engineering, has also joined the list of companies whose auditors resigned. The stock tanked 20 per cent, hitting the lower circuit, after company's auditor Price Waterhouse Chartered Accountants stepped down saying the Atlanta did not share significant information and&nbsp; observations by tax authorities as requested.&nbsp;

Manpasand Beverages called the auditor's resignation ahead of results a mere ‘coincidence’, but analysts say retail investors must not look at stocks of companies where management integrity is in doubt.


Manpasand Beverages tanks 50%; Tip: here is what investors must do

HDFC Bank share price rallied nearly 4 per cent on Thursday on BSE after the bank's shares listed on New York Stock Exchange spiked a whopping 8 per cent overnight. The HDFC Bank American Depository Receipt (ADR) advanced as much as 8.6 per cent to $105.17 on NYSE.

The gains came after Securities and Exchange Board of India (SEBI) announced that it is discontinuing with the institutional trading series (6 lakh series) with effect from 1 July 2018 in the equity segment. The fact that the local window for FII buying will open on the same day, it will trigger huge demand for HDFC Bank stock in the domestic market tomorrow.&nbsp;

"The buying could be more than $1 billion on June 1. We expect the local stock to move up sharply," said Macquarie in a research note.&nbsp;&nbsp;

The FII limit is usually full in HDFC Bank at 75 per cent due to the huge demand among foreign investors. The bank on Wednesday allotted fresh shares under employee stock options, resulting in a dilution of equity. This has open a fresh opportunity for FIIs to lap up the stock.&nbsp;

"Now that this will be the last opportunity for FIIs to buy HDFC Bank, we think that the scrapping of FII window will increase the quantum of buying that will come in on June 1," said Macquarie.&nbsp;

What is 6 Lakh Series?&nbsp;

6 Lakh Series is popularly known as the FII Trading Window, where only foreign investors trade among themselves. FII trading window comes into play when foreign investors are barred from trading in a stock.&nbsp;

This is how Macquarie explains it: There is a separate window on which only FIIs trade so that FIIs still have the option of buying the stock. Since the buyer will be purchasing from another FII, it ensures that there is no change in FII shareholding of the stock.

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Now that the window has been discontinued, FIIs cannot buy an FII restricted stock even by paying a premium. They can sell an FII restricted stock only to a local – which means they will realise no premium while selling.&nbsp;

"Note that as FIIs sell to locals, the FII shareholding will fall after a while and the concerned stock will come out of restriction again," said Macquarie.&nbsp; 
&nbsp;

SEBI&nbsp;announced that it is discontinuing with the institutional trading series (6 lakh series) with effect from 1 July 2018 in the equity segment. The fact that the local window for FII buying will open on the same day, it will trigger huge demand for&nbsp;HDFC Bank stock in the domestic market tomorrow.&nbsp;


This is why HDFC Bank shares will see huge demand tomorrow; stock already up 4% today

At a time when returns on fixed deposits (FDs) are not attractive and volatility in equity markets is rising, non-convertible debentures (NCDs) appear to be the new fad among investors looking for secure investment options.&nbsp; Just today, JM Financial launched its NCD worth Rs 300 crore at 9.2-9.7 per cent coupon rate with an option to retain another Rs 400 crore. Housing finance firm DHFL last week launched its NCD worth Rs 3000 crore with a green shoe option of Rs 9000 crore, totalling Rs 12,000 crore. The issue that offered 8.56-9.1 per cent interest rate received robust response and closed on May 24, well ahead of planned closure on June 4.&nbsp; &nbsp;

Experts believe if one has excess capital to lock in for few years, NCDs are definitely a better choice than FDs. The prevailing rates on FDs are ruling around 7 per cent.

Murthy Nagarajan, Head-Fixed Income, Tata Mutual Fund believes NCDs are the flavour of the season as these are being offered at attractive coupon rates.

“Locking your money for 5-10 years at a coupon rate of 9-10 per cent is definitely a good option,” he said, adding retail investors must check promoters' credibility, and the credit rating history before subscribing to the issue.

Lakshmi Iyer, CIO — Debt &amp; Head Products, Kotak Mahindra Asset Management Company echoed similar thought, adding it's a win-win situation for issuer and investors both.&nbsp;&nbsp;

“NCDs are a good way for issuer to diversify the mode of its borrowing, and since it’s a public issue, retail investors can participate and benefit from the relatively higher interest rates,” said Lakshmi Iyer, CIO — Debt &amp; Head Products, Kotak Mahindra Asset Management Company.

So, what are NCDs?

NCDs are debt financial instruments with a fixed tenure. These are issued by companies to raise capital for business purposes. Unlike convertible debentures, NCDs can't be converted into equity shares of the issuing company at a future date. The interest rate on NCDs is higher than traditional instruments and these are fairly liquid too i.e. one can sell their NCD before maturity in secondary market.

Tax implications:

The interest income on NCDs is taxed as per individual’s tax slabs. But, a short-term capital gain tax is levied if someone sells it on the exchange within a period of one year. After one-year, long-term capital gains tax is imposed at 20 per cent rate with indexation.

“So far as taxes are concerned, there is a marginal tax on interest income, and if you buy it in your wife's or child's name, taxation will be even lower,” said Nagarajan of Tata MF.&nbsp;

Three risks factors to keep in mind:

Interest rate risks

Interest rates look set to go up as global crude oil prices are back on a rising spree, and with this, the high-inflation era. While the assured return on maturity is mostly certain, redeeming your investment before maturity in the secondary market may not fetch one good rates as bond prices fall when interest rates go up.

“Interest rate risk can be mitigated if individuals hold the investment up to maturity. So allocate that proportion of money where you are sure, you do not require immediate liquidity,” Iyer suggested.

Liquidity risk

Although NCDs are listed on the stock exchange, people willing to exit prematurely may not find buyers in the secondary market, especially so for low-rated NCDs. "NCDs are semi-liquid to illiquid in the sense that investors may not get any takers in the secondary market due to low volumes," said Iyer.&nbsp;

Credit risk

By investing in an NCD, investors do run the risk of the company defaulting on the future payment. To mitigate that, one should thoroughly check the credibility of the concerned firm. Rating agencies like Icra, India Ratings and Crisil etc evaluate NCD issuers and assign a credit rating to the company based on its ability to generate cash consistently and pay investors on time. For example, DHFL issue was rated AAA, while JM Financial has AA rating on its issue.

All-in-all, NCDs are definitely a better choice than FDs for low risk takers. However, post-tax returns are attractive only for those in lower income tax slab.

&nbsp;DHFL NCD issue that offered 8.56-9.1 per cent interest rate received robust response and closed on May 24, well ahead of planned closure on June 4.&nbsp; &nbsp;


What are NCDs? Definition, risk factors, tax implications and more 

Fuel rates in India are shooting through the roof with both petrol and diesel prices hitting record highs. Brent crude overseas getting costlier is just one reason why! Brent crude is hovering around $80 per barrel now. The biggest irony here is the fact that we paid lesser for our fuel back in 2013 when Brent crude ruled well above $100 - in fact, it neared $150 before rolling back. Now, it's $80 and yet petrol and diesel prices that consumers are paying are at their&nbsp;costliest&nbsp;&nbsp;ever levels.

Why this paradox?

Back then, when the world was reaping the benefits of a crash in crude prices, Indian government preferred not to pass on the benefits to consumers and instead hoarded the windfall by increasing taxes on the fuel. Between November 2014 and January 2016, the government hiked excise duty on crude 9&nbsp; times. Since then, excise duty has been reduced only once, in October, 2017. In Budget 2018, the government did slash basic excise duty by Rs 2 per litre for petrol and diesel, doing away with additional excise duty of Rs 6 too, but a simultaneous levy of road cess of 8 per cent nullified the cut in excise duty.

Besides excise duty, there are other taxes that inflate the fuel prices at home. And not to forget the fluctuation in Rupee against dollar.&nbsp; &nbsp;

Here's is an explainer on bumper tax that we pay on petrol and diesel prices:

(Data as on May 23, 2018)

Stage one: Import/Refining by OMCs

According to data available on BPCL the crude price for OMCs after factoring in the Cost &amp; Freight (C&amp;F) price on moving average basis comes in at $86.28 per barrel. At Rs 67.45 per dollar exchange rate, this will amount to Rs 5820 per barrel.&nbsp;

1 barrel = 159 litre or Rs 36.6 (Rs 5820/159) per litre

Stage two: Price Charged to Dealers Without Excise &amp; VAT

After refining and factoring in their margin, OMCs charge Rs 37.63 from the dealers, according to BPCL.&nbsp;&nbsp;

Stage three: Excise duty

Now Centre levies excise duty of Rs 19.48 per litre on petrol. This turns the petrol prices at Rs 57.11.&nbsp;

Stage four: Dealer Commission

Dealer commission is fixed at Rs 3.62 per litre for petrol. Now the petrol prices&nbsp;rise to Rs 60.73.&nbsp;

Price Build-up of Petrol at Delhi at BPCL Retail Pump Outlets

[[{"fid":"39360","view_mode":"default","type":"media","link_text":null,"attributes":{"height":233,"width":1009,"class":"media-element file-default"}}]]

Source: BPCL

Stage five: Value Added Tax (VAT)

VAT varies for various states and cities. It is charged at 27 per cent in New Delhi. 27 per cent of Rs 60.73 would be Rs 16.4. Add this into Rs 60.73 along with Rs 0.25 pollution cess. Final petrol price comes in at Rs 77.13 for Delhi as on May 23, 2018.&nbsp;

As OMCs pay Rs 36.6 per litre for petrol and we are charged over Rs 77, effectively we're paying more than 100 per cent tax on petrol. A similar kind of exercise, with different numbers, is carried out for diesel too.

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Be that as it may, now all eyes are resting on the government as to what measures it will take to provide relief against skyrocketing fuel prices to consumers.&nbsp;

The biggest irony here is the fact that we paid lesser for our fuel back in 2013 when Brent crude ruled well above $100 - in fact, it neared $150 before rolling back. Now, it's $80 and yet petrol and diesel prices that consumers are paying are at their&nbsp;costliest&nbsp;&nbsp;ever levels.


100% tax on petrol prices! This is how fuel prices are fixed

Avengers: Infinity War movie, which became one of India's highest grossers, has a tale to tell about the stock markets. The Hollywood blockbuster crossed the Rs 200 crore mark in less than 15 days since its release in India on April 27. Compare this with January-March 2014 data of a little over Rs 400 crore for all Hindi films, and you will know how urban momentum is picking pace fast. There are other signs and trends that investors need to look at too. Here is how Nilesh Shah, managing director at Kotak Mahindra AMC eloquently explains it all:&nbsp; &nbsp;

"One Hollywood blockbuster of today earns just as much as all Bollywood movies put together could do in an entire quarter. Look at auto companies. The waiting period for Maruti Suzuki's Baleno is four months. Not to forget the results that FMCG firms posted. Fast-food chains like Domino's and McDonald's logged 25 per cent sales growth in the quarter gone by. All this tell you urban momentum is positive," he said.&nbsp;

He further said rural economy is showing signs of improvement too. "Tractor sales are registering strong numbers. Non-listed player Sonalika Tractors last year recorded highest sales ever in its history. The loan recovery rate for micro-finance institutions is also improving," he said.&nbsp; &nbsp;

With these signals, it is no brainer that consumption theme will rule the roost in the coming months amid uncertain global and domestic macro environment.&nbsp;

Global brokerage CLSA in a recent report said that March quarter results indicate urban discretionary consumption has been doing well and management commentary indicates rural consumption is growing. “We believe that it’s an opportune time to raise weightings in consumption plays. Consumer staples are the best way to play the rural consumption theme, but valuation multiples of 40x-55x is a major challenge,” said CLSA.

"Consumption will benefit from government increased popularity on spending on welfare programs," it added.&nbsp;

Here are five consumption stocks that look set to perform well over next 12 months that investors can look at positively:

1) PVR

We expect screen additions to accelerate over the next couple of years led by opening of previously delayed screens and marginal improvement in mall development activity. PVRL’s execution is almost flawless with industry leading operating metrics because of its presence in the best catchment areas across cities. However, good content is the only driver of earnings because of it being a high operating leverage business. Forthcoming movie pipeline appears to be strong and we expect PVRL’s consolidated EBITDA to post a strong CAGR of 21 per cent over FY18-20E (on a depressed base). Given PVRL’s brand and execution capabilities coupled with lack of outdoor entertainment options and India’s love for movies should keep the stock in vogue. Maintain Outperformer with a price target of Rs 1,568 (14x FY20E EV/EBITDA). (IDFC Securities)

2) INOX Leisure

Inox’ strong growth trajectory has been the key driver of the operating leverage led earnings. The ad growth of 30 per cent plus for the last four quarters has been very impressive and has outperformed PVR. On the valuations front, Inox, which is trading at 10.9x FY20E EV/EBITDA, is at ~25 per cent discount to PVR. However, given the strong traction in ad revenues, we expect the discount to narrow eventually. We maintain our BUY recommendation and value the stock at 12.8x FY20E EV/EBITDA (15% discount to target EV/EBITDA multiple of PVR) to arrive at a target price of Rs 360/share from earlier Rs 335. We continue to prefer Inox over PVR. (ICICI Securities)

3) Jubilant FoodWorks

Jubilant Foodworks’ (JFL) 4QFY18 revenues grew 27 per cent yoy to Rs 7.8 bn, 4 per cent above EE, on strong SSSg of 26.5% (EE: 21%). JFL continued to reap operating leverage benefits led by strong SSSg and cost-control initiatives, which pushed up EBITDA margins by 651bps yoy to 16.4 per cent. With the new strategy yielding strong growth over the past one year, the platform is set for the next phase of growth, which would be sustainable in our view. Accordingly, we raise our FY19/FY20 sales estimates by 3 per cent to 7 per cent; we also upgrade our EBITDA estimates by 10 per cent to 18 per cent to factor in the higher-than-expected new store additions. Reiterate ADD with a Jun’19 TP of Rs 2,738 vs Rs 2,330 earlier set at a 60 times TTM EPS of Rs 45.6. (Equirus Securities)

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4) Hindustan Unilever

Four key trends are particularly relevant for HUL resulting in an elevation in its earnings growth trajectory compared to the past – (i) its rapidly improving adaptability to market requirements, (ii) its recognition of Naturals as a key sub-segment across categories, (iii) continuing strong trend toward premiumization and (d) extensive plans to employ technology. On a target multiple of 51x Mar’20E EPS (15% premium to three-year average due to 
significantly improving business fundamentals), we get a TP of Rs 1,805 from Rs 1,515 earlier. Maintain Buy. (Motilal Oswal Securities)

5) Titan Company

We envisage Titan to extend its growth run led by share gains, entry in new segments and retail expansion. Moreover, rising share of studded jewellery, cost optimisation and operating leverage are likely to aid margin. Hence, we raise our target multiple to 55x (from 52x) FY20E EPS and arrive at revised TP of Rs 1,160 from earlier Rs 978. We maintain ‘BUY/SO’. At CMP, the stock is trading at 46.7x FY20E EPS. (Edelweiss Securities)

Avengers: Infinity War movie&nbsp;crossed the Rs 200 crore mark in less than 15 days since its release in India on April 27. Compare this with January-March 2014 data of a little over Rs 400 crore for all Hindi films, and you will know how urban momentum is picking pace fast.


Aprajita Sharma