In the weak gone by, global stock market got boosted as investors bet data showing signs of a slowdown in the labour market would ease pressure on the Federal Reserve to further raise interest rates this year. However European stocks fell after the latest round of price data suggested inflation may not yet be fully on the retreat in the euro region. Meanwhile, China’s factory activity in August shrank for a fifth straight month, while non-manufacturing activity hit a new low for the year — signs that the slowdown in the world’s second-largest economy may not yet have bottomed out. The official manufacturing purchasing managers’ index came in at 49.7 in August, according to data from the National Bureau of Statistics released. Official data also showed China’s official non-manufacturing PMI falling to 51.0 in August — compared with 51.5 in July and 53.2 in June.
Domestic stock markets started on a strong note as healthy macroeconomic prints, including the June quarter GDP numbers and August GST revenue prints, were other positive factors that underpinned market sentiment. India posted a GDP growth rate of 7.8 percent for the June quarter following which foreign firms Nomura and Deutsche Bank raised their FY24 growth forecast by 40 and 20 basis points. On the data front, the Manufacturing Purchasing Managers' Index, compiled by S&P Global, jumped to 58.6 last month from 57.7 in July, the highest since May. The Goods and Services Tax (GST) revenues for August 2023 have shown a growth of 11 per cent year on year due to increased compliance and less evasion. An 11 per cent growth roughly translates to around Rs1.60 lakh crore. Going forward, select auto stocks could be in focus which will react to monthly sales numbers. Global factors as well as domestic factors such as update on monsoon and other macroeconomic data will give direction to the markets. Investors too expects that foreign players will be on the buy side; reversing the trend this month as the economy grew at its quickest pace in a year in the first quarter.
On the commodity market front, Commodity markets experienced an uptrend as renewed demand pushed prices to higher levels, with the CRB index closing above 316 points. Bullion prices saw an upside due to the decline in the dollar index and yields. Gold and silver will trade in a range of 58500-60500 and 73000-75200 respectively. Crude oil prices are on rise on expectations that cuts by the OPEC+ group of oil producing nations, led by Saudi Arabia, would continue through the end of 2023. It is expected to trade in upper band of 6800-7100. Base metals may trade with positive bias. In agri, spices can see both side moves on mix triggers. Cotton prices are likely to continue its upward journey. GDP of Switzerland, Japan, Euro Area and Australia, Interest rates decision by RBA and BoC, ISM Services PMI, Inflation Rate of Mexico and Germany, Unemployment Rate of Canada etc are many triggers for the commodities this week.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBIregistered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
The views expressed are based solely on information available publicly available/internal data/ other reliable sources believed to be true.
SMC does not represent/ provide any warranty express or implied to the accuracy, contents or views expressed herein and investors are advised to independently evaluate the market conditions/risks involved before making any investment decision.
DISCLAIMER: This report is for informational purpose only and contains information, opinion, material obtained from reliable sources and every effort has been made to avoid errors and omissions and is not to be construed as an advice or an offer to act on views expressed therein or an offer to buy and/or sell any securities or related financial instruments, SMC, its employees and its group companies shall not be responsible and/or liable to anyone for any direct or consequential use of the contents thereof. Reproduction of the contents of this report in any form or by any means without prior written permission of the SMC is prohibited. Please note that we and our affiliates, officers, directors and employees, including person involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities thereof, of company (ies) mentioned herein or (b) may trade in this securities in ways different from those discussed in this report or (c) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instrument of the company (ies) discussed herein or may perform or seek to perform investment banking services for such Company (ies) or act as advisor or lender / borrower to such company (ies) or have other potential conflict of interest with respect of any recommendation and related information and opinions, All disputes shall be subject to the exclusive jurisdiction or Delhi High Court.
SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
The company has achieved outstanding operational and financial performance as compared to the previous quarter with recovery in petrochemicals, new energy and retail segment, financial services and sustained growth in Digital Services business. Moreover, it continues to deliver multiple growths across businesses and ongoing investments and acquisitions would continue to drive the next leg of growth. Retail, Telecom, and new energy are poised to become the upcoming growth drivers over the next two-to-three years, given the growth initiatives in each of businesses with a focus on the India opportunity. Thus, it is expected that the stock will see a price target of Rs.2888 in 8 to 10 months’ time frame on 1 year average P/E of 25.99x and FY24 EPS of Rs.111.11.
The strong growth across products segment in Q1FY2024 along with improved margins indicates strong demand for the company’s products. The focus in the EV system manufacturing and capacity expansion in existing product line such as lighting, wheels and switches indicates sustained business growth going forward. The growing order book in the EV segment also indicates future growth visibility. Thus, it is expected that the stock will see a price target of Rs.701 in 8 to 10 months time frame on a two year average P/BV of 8.28x and FY24 (E) BVPS of Rs.84.65.
The stock closed at Rs.96.95 on 01st September, 2023. It made a 52-week low of Rs.73.20 on 28th September, 2022 and a 52- week high of Rs.97.50 on 01st September, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 86.50
From almost last one year, the stock has been trading in a broader range of 75-95 levels with prices holding well above its 200 days exponential moving average on weekly charts. Last week, the stock has made its 52 week high of 97.50 and witnessed a fresh breakout above its key resistance level of 95 after a prolong consolidation phase of nearly eight months. The momentum in prices has picked up along with a rise in volumes as well which points towards long buildup into a stock. Therefore, one can buy the stock in the range of 95-97 levels for the upside target of 113-114 levels with SL below 87 levels.
The stock closed at Rs.4599.15 on 01st September, 2023. It made a 52-week low at Rs.3764.80 on 27th January, 2023 and a 52-week high of Rs.4950 on 15thMay, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.4394.
In recent past stock made a “Double Bottom” pattern on daily charts, around 4200 levels and seen a sharp bounce thereon , as once again momentum into the prices has taken the stock once again above its 200 days exponential moving average on daily charts. Now, from last one month prices can be seen fluctuating in broader range of 4400-4600 zone as consolidation into the prices have kept the stock to witness some sideways moves over the weeks. At current juncture the fresh breakout has been observed on the charts as prices can be seen rising above the falling trend line of long term downward sloping channel. The rise in volumes along with rise in price suggests. Fresh long build up into a stock. Therefore, one can buy the stock in the range of 4600-4590 levels for the upside target of 5000-5050 levels with SL below 4350 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
Charts by Reliable software
On the weekly chart, both the Nifty and Bank Nifty indices concluded with marginal gains. Nifty closed in green after 5 consecutive losses on weekly chart. Buying interest was seen in metal stocks followed by auto and consumer durable stocks last week. Conversely, there was a trend of profit-taking in oil & gas, FMCG and pharmaceutical stocks. In the analysis of derivative data for Nifty, there was visible put writing in 19,300 strike, where the highest put open interest was recorded at 19300 followed by 19400 strike. Conversely, call writers seemed less active in Nifty, with the highest open interest at 19600 strike followed by 19500. In Banknifty, the highest call open interest was observed at 44,500 strike, followed by 45,000 strike. On the put side, the highest call open interest was noted at 44,000 strike followed by 43900. Moving to implied volatility (IV), call options for Nifty settled at 10.42%, while put options concluded at 10.89%. The Nifty VIX, a measure of market volatility, concluded the week at 12.06%. The Put-Call Ratio Open Interest (PCR OI), standing at 1.44 for the week, indicated a higher inclination towards put writing over calls. Looking forward to the upcoming week, it is anticipated that Nifty's trading range will be between the level of 19,200 and 19,600. Traders are advised to monitor the India VIX closely, as it is trading near to the support level. A rebound in India VIX could be expected in the coming weeks. Stock specific buying can be expected ahead. “Buy on dips” is recommended until Nifty trade above 19200 levels.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric prices are expected to trade mixed to down in wake of forecast of revival of monsoon rainfall in central and southern region in month of Sep. IMD has projected that rainfall activity is likely to be above normal over most parts of south Peninsular India and over Central India that will ease the weather concerns. Sluggish export enquires could be another factor which will keep prices under pressure in near term. Export demand has slowed down with sharp rise in prices as India exported only 18.3 thousand tonnes in June’23 as compared to 18.5 thousand tonnes of previous year. NCDEX has imposed Event based Additional Surveillance Margin (E-ASM) of all running contract of turmeric till 20thSep that will cap the gains in turmeric prices. Government is mulling to come with some measures to control surging prices of spices. However, losses are likely to be limited due to limited availability of quality crop in the market. Weaker production prospects in Maharashtra and Telangana supported by fall in area is likely to cap the major downfall in prices. Turmeric Oct prices are likely to trade in range of 13000-17400 levels.
Jeera futures are expected to witness recovery in prices with increased festive demand at prevailing levels. Drier stocks with millers and limited supply of quality produce are likely to keep prices firm in near term. However, export is still subdued due to improved global supplies. Indian Jeera prices are still uncompetitive that keeping export sluggish. Export of Jeera dropped in June’23 with reduced buying by China as India exported only 9.2 thousand tonnes of jeera as compared to 20.4 thousand tonnes of previous year. Pipelines are dry due to weaker crop and stocks are likely to remain tighter unless new crop touches the market. Jeera Prices are likely to trade in range of 51000-61000 levels.
Dhaniya NCDEX Sep prices are likely to trade mixed to down due to subdued domestic demand. Weakness in dhaniya will remain continue due to adequate domestic supply. However, losses are likely to be limited with increased export demand. Export demand of dhaniya has been good that will cap the downfall in prices. India exported about 11.3 thousand tonnes of dhaniya in June’23 as compared to 2.4 thousand tonnes of previous year. India exported about 46.7 thousand tonnes during time period of Apr-June’23 against the 8.7 thousand tonnes of previous year. China, Malaysia and UAE have been the major buyers of Indian coriander in year 2023. Overall arrivals of dhaniya has been higher so far since Apr’23 due to larger crop size but higher export is likely to restrict the losses. Dhaniya prices are likely to trade in range of 6900-7700 levels.
Gold posted its second consecutive weekly gain, benefitting from reduced prospects of U.S. interest rate hikes this year. This shift followed a week filled with significant data releases, culminating in the highly anticipated jobs report later in the day. Declines in U.S. Treasury yields and the weakening of the dollar throughout the week increased the appeal of gold for holders of other currencies. In July, U.S. consumer spending experienced its most substantial increase in six months. However, the deceleration in monthly inflation rates solidified expectations that the Federal Reserve would maintain its current interest rates next month. Atlanta Fed President Raphael Bostic argued against any further U.S. interest rate hikes, contending that monetary policy is already sufficiently tight to bring inflation down to the targeted 2% level over a "reasonable" timeframe. Furthermore, Japan's factory activity contracted for the third consecutive month in August, as revealed by a survey conducted on Friday. The CFTC Gold Non-Commercial Net positions stood at 101,000, indicating a decrease compared to the earlier data of 121,000. This decline in non-commercial net positions suggests that there has been a reduction in bullish sentiment among speculators in the gold market. CFTC Gold Non-Commercial Net positions stood at 101,000, indicating a decrease compared to the earlier data of 121,000. This decline in non-commercial net positions suggests that there has been a reduction in bullish sentiment among speculators in the gold market. Looking ahead to the upcoming week, it appears that gold prices could experience a correction. The 58,900 level is expected to act as a support, while the 60,000 mark may serve as a resistance point. On the other hand, silver is anticipated to encounter resistance in the vicinity of 78,000, with support likely to be found around 73,800.
Crude oil prices witnessed a significant surge of over 6%. This boost was driven by a noteworthy depletion in U.S. commercial crude oil inventories, which had dropped by a substantial 34 million barrels since mid-July. This decline contributed to a growing perception that the oil market was tightening, resulting in a recovery in spot prices and calendar spreads. Surveys conducted by the U.S. EIA revealed that commercial crude inventories had diminished in five out of the last six weeks. Simultaneously, U.S. field production of crude oil saw a 1.6% increase in June, reaching 12.844 million barrels per day, the highest level since February 2020, before the onset of the pandemic that severely impacted fuel demand and other oil products. Regarding natural gas, gross production in the U.S. Lower 48 states experienced a slight decline, falling by 0.1 billion cubic feet per day (bcfd) to 114.9 bcfd in June, following a record 115.0 bcfd in May, as indicated by the EIA's monthly 914 production report. These fluctuations influenced both spot prices and calendar spreads by altering the amount of readily available oil for traders and refiners. Additionally, the Biden administration directed measures to counteract potential oil shortages and upward price pressure arising from Russia's invasion of Ukraine and the subsequent U.S. and EU sanctions. While strategic oil releases were conducted to address these concerns, they concluded by the end of June. Subsequently, the Department of Energy has been gradually replenishing the SPR with nearly 3 million barrels, in line with their plan to do so during periods of relatively lower prices. Ahead in the week, Crude oil prices may continue to trade higher, the possible trading range would be 6650-7100. Natural Gas prices may continue to trade higher and the trading range would be 200-240.
Base metals may trade with positive bias as China rolled out more measures to support its yuan and property market, a key demand sector for metals. China's factory activity surprisingly returned to expansion in August, with supply, domestic demand and employment improving, suggesting official efforts to revive growth might be having some effect. Beijing has issued a raft of measures to revive its crisis-hit property market, the latest including lowering the existing mortgage rate for first-time home buyers and the down payment ratio in some cities. However, China's manufacturing activity contracted for a fifth straight month in August, an official survey showed, extending a streak of weak macroeconomic data that have weighed on metals prices. Copper may trade in the range of 725-760. Global demand for copper will likely be aided by the electric vehicle market and a fast-growing India economy, ANZ analysts said in a note, expecting India's demand to exceed 1.5 million tons in 2025, up 40% from 2022 levels. Zinc can trade in range of 210-230. Lead can move in the range of 183-193. Aluminium can trade in the range of 196-210 with bullish bias on expectations of robust demand from top consumer China where stocks of the metal are low. China's aluminium imports jumped 20.1% in July from a year earlier to 231,452 tons. Aluminium stocks at three major Japanese ports slipped 1.9% to 350,600 metric tons as of end-July, from 357,490 metric tons in the prior month, Marubeni Corp said. Steel long (Sept) is likely to trade in the range of 45900-47500. India's steel exports have plummeted by 33% due to sluggish international demand and intensified competition from Chinese steel producers.
Cotton prices are likely to trade sideways to down in anticipation of betterment of crop condition as IMD has projected good rainfall ahead in central India during Sep. Bleak export demand and muted industrial buying will put pressure on prices. However, losses are likely to be limited in wake of weaker production prospects of upcoming season. Cotton area across India reported at 122.58 Lakh Ha as on 25th Aug in year 2023 Vs 124.82 lakh Ha of previous year. Cotton MCX Sep prices are likely to trade in range of 5800-62500 levels. Similarly, Kapas Apr’24 futures are likely to trade in range of 1530-1640 levels.
Cotton seed oil cake NCDEX Sep futures are likely to trade mixed to down on sluggish buying in domestic market. However, reports of fall in area under cotton will cap the losses. Price seasonality of cotton seed oil cake suggest prices fall in Sep. Cocud prices are likely to trade in range of 2700-2950 levels.
Guar seed Sep futures is likely to trade sideways to higher due to prevailing concerns over lower production in Rajasthan. Sowing area dropped in Rajasthan by 10% %-o-Y to 27.34 lakh Ha in year 2023. Drier weather in Rajasthan has sparked the worries of yield losses that will support firmness in prices. Guar seed prices will trade in range of 5900-6750 in near term wherein Guar gum prices are likely to trade in range of 11900-14500 levels.
Mentha oil Sep contract witnessed sharp recovery in prices due to short covering in the market. Stockists are showing buying interest with emerging fresh export enquires for menthol. Overall production of mentha oil is likely to be down on yearly basis due to lower acreages that will cap the downfall in prices. Mentha oil prices are likely to trade in range of 990- 1080 levels.
Castor seed prices are likely to trade mixed to down on reports of rise in area under castor in Gujarat. Castor Sowing activities are running on positive note as about 7.67 lakh Ha was sown under castor as on 25th Aug across India Vs 6.51 lakh Ha of previous year. Moreover, slack demand of castor oil will also keep prices down in near term. Castor seed Sep prices are likely to trade in range of 5900- 6600 levels.
It closed at Rs. 735.60 on 31st Aug 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 731.08. On the daily chart, the commodity has Relative Strength Index (14-day) value of 66.269. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 737 for a target of Rs. 750 with the stop loss of 730
It closed at Rs. 231.60 on 31st Aug 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 219.68. On the daily chart, the commodity has Relative Strength Index (14-day) value of 55.778. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 224 for a target of Rs. 240 with the stop loss of 216.
It closed at Rs.6175.00 on 31st Aug 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs.6223.70 On the daily chart, the commodity has Relative Strength Index (14-day) value of 50.521. Based on both indicators, it is giving a buy signal.
One can buy near Rs.6180 for a target of Rs. 6450 with the stop loss of 6040.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
In the week gone by, Commodity markets experienced an uptrend as renewed demand pushed prices to higher levels, with the CRB index closing above 316 points. Bullion prices saw an upside due to the decline in the dollar index and yields. Gold prices upside was aided by a weaker dollar as softer-than-expected U.S. economic data spurred bets that the Federal Reserve will have limited headroom to keep raising rates. Gold and silver closed above 59300 and 74000 respectively. Energy commodities also saw resurgence in interest. U.S. crude oil prices gained, rising for a third month in row, on expectations that cuts by the OPEC+ group of oil producing nations, led by Saudi Arabia, would continue through the end of 2023. Russian Deputy Prime Minister Alexander Novak said that Moscow had reached a new deal with its peers in the Organization of Petroleum Exporting Countries and allies (OPEC+) to further cut supplies, and will outline more reductions in production next week. Sixmonth U.S. crude oil futures traded as low as $3.83 below crude for front month delivery, the steepest discount since Nov. 17, signaling tight supplies and encouraging inventory draws. The dollar index faced resistance and dropped from the 104.4 level. Copper prices showed strong gains for the third consecutive week. Aluminum and lead witnessed a robust recovery, while zinc continued its upward trajectory for the second week in a row. China's manufacturing activity shrank again in August, an official factory survey showed, fuelling concerns about weakness in the world's second-biggest economy; limited the upside of industrial metals.
In agri, cotton oil seed cake futures recovered from the low and closed near 2800. Castor seed tried to recover weekly losses in the later part of the week. Guar counter closed weak. It was a bearish week for spices. NCDEX has imposed Event based Additional Surveillance Margin (E-ASM) of all running contract of turmeric till 20thSep that will cap the gains in turmeric prices. Government is mulling to come with some measures to control surging prices of spices. Bleak export enquires are still a concerns for exporters as demand from China has dropped in recent weeks, exerted pressure on jeera prices. Mentha prices zoomed up on low production issue. Below normal supplies and increased buying by stockists with emerging fresh export enquires for menthol supported mentha prices. Kapas prices rose on shrinking supplies at domestic market. Reports of lower acreages and firmness in ICE cotton prices also supported market sentiments up.
India is the second largest consumer of gold globally after China, with annual gold demand of around 800–900 tonnes, and an important position in global markets. Despite this, India has no role in determining the gold prices in the global markets. Giving a major boost to India’s aspiration of having its own International Bullion Exchange and paving the way for India to play a larger role in the global bullion market, India International Bullion Exchange IFSC Limited (IIBX) was launched by the Prime Minister of India, Shri Narendra Modi on 29th of July 2022. IIBX is regulated by International Financial Services Centres Authority (IFSCA).
IIBX data show that between the launch on July 29, 2022 and August 31, 2023, the total trade volume has been reported at 984 kg (worth $58.55 million).
The products available for trade
Registered jewellers on the exchange and vaults
The exchange has two vault operators-Sequel Global and Brinks India-and the regulator is in the process of approving another vault operator. The regulator will also approve setting up of a bullion refinery in the GIFT-IFSC. A cumulative storage capacity for approximately 125 tonnes of gold and 1,000 tonnes of silver is planned at the GIFT City.
Advantages of Bullion Spot Exchange
The dollar index, which had surged by more than 5 points in the past six weeks, faced significant resistance around the 104.35-104.40 range, signaling an overbought condition. This week, it experienced a noteworthy correction, snapping a six-week winning streak. This correction was primarily triggered by indications of a potential slowdown in the US economy, leading to heightened speculation that the Federal Reserve might halt its ongoing policy tightening measures. Market sentiment also turned cautious as investors eagerly awaited the release of a pivotal US monthly jobs report, expected to shed light on the labor market's performance and offer insights into the broader economic landscape. Presently, the dollar index has shifted from its overbought territory to a more neutral stance. However, the overall trend remains bullish, contingent on its ability to maintain levels above its critical moving averages, with substantial support identified around the 103 level. On the upside, resistance is notable around the 106.00 mark. The future trajectory of the dollar index will significantly hinge on its capacity to sustain levels above the crucial 103 support. A break below this support could potentially result in a transition from a bullish trend to a sideways one. Regarding the USDINR pair, it has been consolidating within the range of 82.50 to 83.00 over the past few trading sessions. Importantly, it has managed to stay above its major moving averages, suggesting a mild bullish bias for the pair. The trading environment is currently neutral, indicating room for potential momentum. Considering the overall bullish trend in both the dollar index and USDINR, along with the recent correction, the pair's price movement appears poised for confirmation in the current scenario.
USDINR (SEPT)pair is currently in an Mild Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 82.74. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 52.71 on the daily chart. Major support is seen around 82.35 levels, while resistance is expected near 83.2 levels.
One can buy near 82.5 for the target of 83.2 with the stop loss of 82.1
GBPINR (SEPT)pair is currently in an Mild Bearish trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 105.06. However, the pair is in Neutral territory with a Relative Strength Index (14- day) value of 46.33 on the daily chart. Major support is seen around 103.8 levels, while resistance is expected near 105.5 levels.
One can sell near 105 for the target of 104 with the stop loss of 105.5
EURINR (SEPT) pair is currently in an Mild Bearish trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 90.23. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 44.46 on the daily chart. Major support is seen around 89 levels, while resistance is expected near 90.45 levels.
One can sell near 90 for the target of 89 with the stop loss of 90.5
JPYINR (SEPT) pair is currently in an Mild Bullish trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 57.32. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 44.76 on the daily chart. Major support is seen around 56.4 levels, while resistance is expected near 57.8 levels.
One can buy near 57 for the target of 58 with the stop loss of 56.5
(2/5)
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The company intends to utilize the net proceeds from
the issue towards the funding of the following objects:
Funding the working capital requirements of the
company.
General corporate purposes
Considering the P/E valuation, on the upper end of the price band of Rs.98, the stock is priced at pre issue P/E of 13.58x on FY23 EPS of Rs.7.22. Post issue, the stock is priced at a P/E of 18.98x on its EPS of Rs.5.16. Looking at the P/B ratio at Rs.98, pre issue, book value of Rs. 30.56 of P/Bvx 3.21x. Post issue, book value of Rs. 49.75 of P/Bvx 1.97x.
Considering the P/E valuation, on the upper end of the price band of Rs.93, the stock is priced at pre issue P/E of 12.89x on FY23 EPS of Rs.7.22. Post issue, the stock is priced at a P/E of 18.01x on its EPS of Rs.5.16. Looking at the P/B ratio at Rs.93, pre issue, book value of Rs. 30.56 of P/Bvx 3.04x. Post issue, book value of Rs. 49.75 of P/Bvx 1.87x.
Incorporated in 2002, Ratnaveer Precision Engineering Limited manufactures stainless steel finished sheets, washers, solar roofing hooks, pipes, and tubes. Ratnaveer Precision Engineering has 4 manufacturing units out of which two units; Unit-I and Unit-II are located at GIDC, Savli, Vadodara, Gujarat, Unit-III is located at Waghodia, Vadodara, Gujarat, and Unit-IV is located at GIDC, Vatva, Ahmedabad, Gujarat. The company manufactures SS finishing sheets, SS washers, and SS solar mounting hooks at Unit I and SS pipes & tubes at Unit II. Unit III and Unit IV are dedicated to the backward integration process.
Synergistic Business Model focused on Backward Integration: The company has developed a synergistic system of backward integration whereby it processes the waste being generated in manufacturing of its products for converting back into the raw material which is utilized again in manufacturing. Thus, the raw material required is also being generated in-house, while the waste being produced in the manufacturing process is being completely utilized, ensuring economies of scale and minimal wastage.
Wide product portfolio and multiple designs: Its portfolio comprises of over 2,500 SKUs of SS washers. Having a wide range of products not only enables it to meet the trends and ever changing demands of its customers but also gives company an edge to efficiently compete with its competitors. Its product portfolio also includes diversified variety of stainless steel pipes in various specifications and sizes having wide applications in varied industries.
Customer Diversification: The company sells its products both in the domestic as well as international markets. In the domestic market, it sells its products to the manufacturers as well as traders/ stockists and end customers whereas in the international market it supplies its products through traders/stockists in the International market. It has been exporting since incorporation and as on March 31, 2023, some of the countries it is exporting to including but not limited to Germany, UK, Spain, Netherland, etc. Revenue contribution from its top 10 customers is Rs.147.20 Crore, Rs.190.70 Crore and Rs.238.06 Crore contributing 35.60%, 35.35%, 38.84%, and 49.62%, for Fiscals 2021, 2022 and 2023, respectively.
Diverse, longstanding and growing global customer base: The company has a diverse base of customers present in Indian and European geographies, as of March 31, 2023, as a result of its marketing efforts. Its global customer base helps it limit its dependency on a specific customer, industry or geography thereby reducing financial and concentration risk. Its service offerings have led to consistent customer retention rates. Its long-standing relationship with its customers is evidenced by its customer retention rate. Its growth strategy in these markets will be to create strong local presence and connect and expertise with required development capabilities to exploit growth potential offered by these markets. Its strong focus will remain on acquiring new customers, retaining existing customers and offering good quality products.
Continue to add to product portfolio by introducing new designs: Ratnaveer intends to expand its portfolio of SS washers by adding circlips to the product line, it currently offers over 2,500 SKUs of SS washers including inner ring washers, spring washers, nord lock washers, retaining rings, internal tooth washers and external tooth washers of different sizes and specifications. The Company’s strategy is focused towards introducing new product designs to cater to the requirements of its customers as well as garnering the attention of more customers. This helps in strengthening the relationship with the existing customer network through a wide range of products while also onboarding new customers from untapped geographies.
Ratnaveer Precision Engineering has created a niche place in SS cold-rolled products that are widely used globally. The company has posted steady growth in its top and bottom lines for the reported periods. However, the company is dependent on a few customers for a major part of its revenues. Even a significant portion of its domestic sales are derived from the western and north zone and any adverse developments in this market could adversely affect its business.
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Helios Mutual Fund has filed a draft document with Sebi to launch a flexi cap fund. Helios Flexi Cap Fund will be an open-ended equity scheme investing across large cap, mid cap and small cap stocks. According to the scheme information document, the investment objective of the scheme is to generate long-term capital appreciation by investing predominantly in equity and equity related instruments across market capitalization. The performance of the scheme will be benchmarked against NIFTY 500 TRI. The scheme will be managed by Apurva Sharma. The minimum application amount will be Rs 5,000 and in multiples of Re 1 thereafter. The minimum investment amount for weekly and fortnightly SIP will be Rs 500 and in multiples of Re 1 thereafter with minimum 24 instalments. The minimum investment amount for monthly SIP will be Rs 1,000 and in multiples of Re 1 thereafter with minimum 12 instalments. For quarterly SIP frequency, the minimum investment amount will be Rs 3,000 and in multiples of Re 1 thereafter with minimum four instalments.
Kotak Mutual Fund has launched Kotak Multi Asset Allocation Fund, an open-ended scheme investing in equity, debt and money market instruments, commodity ETFs and exchange traded commodity derivatives. The new fund offer or NFO of the scheme is open for subscription, and it will close on September 24. The investment objective of the scheme is to generate long term capital appreciation by investing in equity and equity-related securities, debt and money market instruments, commodity ETFs and exchange traded commodity derivatives. The performance of the scheme will be benchmarked against NIFTY 500 TRI (65%) + NIFTY Short Duration Debt Index (25%) + Domestic Price of Gold (5%) + Domestic Price of Silver (5%). The scheme will be managed by Devender Singhal, Abhishek Bisen (debt investment), Hiten Shah (arbitrage investment), Jeetu Valechha Sonar (commodities investment), and Arjun Khanna (foreign securities). The minimum investment amount is of Rs 5,000 and in multiples of Re 1 for purchases and of Re 0.01 for switches. The minimum investment amount for SIP is Rs 500 (subject to a minimum of 10 SIP instalments of Rs 500 each).
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