In the weak gone by, Global stock markets witnessed volatile trade as upbeat economic data soothed investor worries about an imminent recession triggered by the Federal Reserve's aggressive interest rate hikes. Global central banks are concerned with higher inflation and on path for higher interest rates to contain inflation. On the data front, US consumer confidence also increased to a near 1-1/2 year high in June. Separate reports showed new orders for key U.S.-manufactured capital goods unexpectedly rose in May, and sales of new single-family homes surged in the same month. European Central Bank president Christine Lagarde has said euro zone inflation has entered a new phase which could linger for some time. While China's Premier Li Qiang said the country's economic growth in the second quarter would be higher than the first and was expected to reach the annual economic growth target of around 5%.
Back at home, domestic markets moved higher triggered by buying from foreign Institutional Investors and the advance of the southwest monsoon also boosted investor sentiment. The Nifty index has achieved a new all-time high, driven by a renewed sense of optimism. Strong institutional flows, healthy macros and robust earnings growth drove domestic market towards its new highs. India's Current Account Deficit (CAD) decreased to $1.3 billion, 0.2% of GDP in Q4FY23. Net foreign direct investment (FDI) recorded a robust sequential rise to $6.4 billion in Q4 from $2.0 billion in Q3. With monsoon kicking in and RBI taken a rate pause, the strong momentum in earnings is likely to continue. Thus at current valuations, market is expected to continue its up move and remain buoyant.
On the commodity market front, CRB faced resistance near 300 and continued to fall this week too, meanwhile dollar index appreciated for the second week. In the bullion counter, gold prices slipped further whereas silver recovered from the low following a string of hawkish signals from Fed officials, most notably Chair Jerome Powell, who reiterated that the bank could hike rates at least two more times this year. However, on MCX, silver closed in red. Gold and silver price are likely to trade in a range of 57500-59000 and 67000- 70000 levels respectively. Base metals prices are under pressure on weak Chinese data amid appreciation in dollar index. China’s manufacturing sector- a key economic driver in the country- shrank in June, while service sector activity also grew less than expected. Crude oil can recover further upto 5900 whereas natural gas is most likely to regain from the low. Some important data scheduled this week are ISM Manufacturing PMI, FOMC Minutes, ISM Services, Non-Farm Payroll and Unemployment Rate PMI, RBA Interest Rate Decision, Inflation Rate of Mexico, Unemployment Rate of Canada etc.
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.
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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 is doing well and it has strong balance sheet and liquidity position. Moreover, the management of the company has taken several targeted measures to achieve operational efficiencies and ensure long-term sustainable growth. The company is key beneficiary of the revival in economic activity and consequently the pick-up in demand for M&HCV. The industrial business is expected to grow in the medium to long term driven by the revival of the capex cycle in India, potential opportunities arising out of various PLI schemes and defence manufacturing in India. The company will be looking at expanding capacities ahead. Thus, it is expected that the stock will see a price target of Rs. 953 in 8 to 10 months’ time frame on current P/BVx of 5.81x and FY24 BVPS of Rs.164.04E
The company has been witnessing improvement in its average room rate and occupancy level. It has ambitious target to become debt free and add strong portfolio of hotels and rooms and operate with stable EBITDA. Its cost optimization has led to improvement in EBITDA margin, which would auger well for the company in terms of more cash generation to fund part of its capex through internal accruals. Thus, it is expected that the stock will see a price target of Rs. 108 in 8 to 10 months’ time frame on current P/BVx of 8.69x and FY24 BVPS of Rs.12.43E.
The stock closed at Rs.167.40 on 30th June, 2023. It made a 52- week low of Rs.133.10 on 28th March, 2023 and a 52-week high of Rs.170.55 on 20thJune, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs. 147.
Stock can be seen trading in a rising channel with formation of higher bottom pattern on daily and weekly interval. Sharp recovery has been witnessed, as prices took support at its 200 days exponential moving average around 145 levels and travelled towards its 52 week high of 170 levels in short span of time. Broadly the stock has managed to give fresh breakout above the Inverted Head & Shoulder pattern while breakout in prices has also been observed on short term charts after forming a Bullish Flag pattern. We expect that the momentum is likely to carry towards new highs after a breakout as rising volumes suggests strength in a current trend. Therefore, one can buy the stock in the range of 165-167 levels for the upside target of 187- 189 levels with SL below 153 levels.
The stock closed at Rs.1051 on 30th June, 2023. It made a 52- week low at Rs.821.90 on 04th July, 2022 and a 52-week high of Rs.1072.15 on 30th January, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs. 967.90.
In recent past stock has witnessed a steep fall from 1020 levels and took support around 920 levels. Since then stock took almost a V shape recovery and once again has managed to surpass above key psychological level of 1000 level. At current juncture stock has managed to give a fresh breakout above the Inverted Head & Shoulder pattern. The breakout has been observed with rise in volumes and with positive divergences on secondary oscillators. Therefore, one can buy the stock in range of 1040-1050 levels for the upside target of 1140-1145 levels with SL below 980 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.
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The market started the July series with a positive note, with a strong comeback by the bulls in recent sessions, resulting in new highs. Nifty has already surpassed the significant psychological level of 19,000, while Bank nifty reached an all-time high during Friday's session. Last week, the IT sector showed promising performance ahead of the result season, witnessing a rebound in stocks such as TCS, INFY, and others. Additionally, there has been buying activity in the Auto, Pharma, and Healthcare sectors, while the Media and Oil & Gas sectors faced some pressure. Currently, the rollover in Nifty is higher than the previous month, which was at 70%. This suggests the potential for further momentum in the Nifty index. Notably, this month's rollover is the highest observed in the last three months. However, the rollover in Bank nifty remained unchanged, indicating a consistent momentum compared to the previous month. The highest call open interest concentration for Nifty is at 19,500, while for put options, stands at 19,000 strike. In Bank nifty, the call and put open interest concentration is at 44,500, which point towards further consolidation in the index. The implied volatility (IV) of calls closed at 9.96%, while for put options, it closed at 10.22%. The Nifty VIX for the week concluded at 10.89%. The PCR OI for the week ended at 1.27.For upcoming week we expect markets to remain buoyant and any dip should be used to create fresh longs.
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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 remained higher last week tracking cues from slower monsoon progress in major producing states that affected the sowing activities adversely. Firmness in turmeric prices will continue to remain due to supply concerns. Production prospects are looking bleak in wake of falling area under turmeric in Maharashtra and Telangana. Adverse weather condition and lower realization will lead to fall in turmeric acreages at least by 10-15%. Arrivals pace is also slower as more than 65% of arrivals have touched the market. About 164 thousand tonnes of turmeric has arrived across India so far in year 2023 since 1st Apr’23 as compared to 159 thousand tonnes of previous year. Export demand for turmeric has improved in recent months that are likely to support prices. India exported about 19.6 thousand tonnes of turmeric in Apr’23 against the 13.76 thousand tonnes of previous year for corresponding month. However, sowing is in initial stage and prices may see profit booking as weather conditions turn favorable for sowing activities. Turmeric Aug contract is likely to honor the support of 9200 levels and will gradually move towards 10200 levels.
Jeera NCDEX July futures extended its rally made the record high of 58235 levels. However, prices have started correcting down from the level due to subdued physical demand. Millers are showing lesser interest in fresh buying with slow down in festive and wedding season demand. Moreover, increased imports of jeera at cheaper rate also impacted market sentiments down. Going forwards, prices are likely to trade sideways as forecast of heavy rainfall in Gujarat in coming week may lead to supply disruption that will cap the major downfall in prices. About 76.52 thousand tones have been arrived so far in year 2023 since 1st April as compared to 73.09 thousand tonnes of the previous year. Inventories are drier as most of the millers are going for need based buying so any correction in jeera will be a buying opportunity for millers and stockist. India exported about 16.28 thousand tonnes of Jeera in Apr’23 against the 9.94 thousand tonnes of the previous year. Jeera July prices are likely to trade in range of 51600 – 61500 levels.
Dhaniya NCDEX July prices are likely to trade higher on increased physical demand. Increased buying by spice makers and slower pace of arrivals in the market has supported firmness in prices. Arrivals have dropped due long spell of rainfall in Gujarat and Rajasthan. Export demand has improved and the news is supporting market sentiments. About 10.68 thousand tonnes of dhaniya was exported in Apr’23 as compared to 3.16 thousand tonnes of the previous year. However, gains in dhaniya are looking limited due to higher production numbers in year the year 2023. There are heavy stocks with farmers as well as stockists that will cap the excessive gains in prices. Dhaniya NCDEX July futures are likely to trade in range of 6300-7000.
Gold prices registered their worst quarter since September last year, holding near 3-1/2 month lows after a slew of strong data prints and hawkish comments from central bank officials raised bets that U.S. rates were to stay higher. Most U.S. central bank policymakers expect they will need to raise interest rates at least twice more by year’s end, Fed Chair Jerome Powell said. A range of indicators from the U.S. suggests that a recession is most likely to be avoided in the country. U.S. jobless claims fell last week by the most in 20 months, pointing to labour market strength that also helped prop up gross domestic product in the first quarter. The overall scenario for gold and precious metals remains challenging, with Powell and European Central Bank President Christine Lagarde preparing markets for more rate hikes. The prospect of higher interest rates are weighing on gold, which was also pressured as the dollar climbed to two-week highs. However, some analysts believe that gold prices could bottom out soon and start to recover. They argue that gold is still a relatively attractive asset, given the current economic and political uncertainty. On COMEX, Gold prices are hovering above $1900 levels, a successful break below the level will push prices to $1860 levels, and on the higher side $ 1960 is strong resistance for the counter. Silver may continue to trade with bearish bias and the possible trading range would be 21.50-23.50 levels. Ahead in the week, gold prices on MCX may continue to witness selling pressure and the possible trading range would be 57000-59000 levels, whereas Silver may trade in the range of 66500-70500 levels.
Crude oil prices may trade in the range as a big drawdown in U.S. oil stocks outweighed concerns that fuel demand will be dented further by more interest rate rises. The strong U.S. economic data and oil stock drawdown comes as Saudi Arabia is planning to further cut output by 1 million barrels per day in July. That's in addition to a broader OPEC+ deal to limit supply into 2024. Refinitiv data showed Russia's seaborne oil exports from Primorsk, Ust-Luga and Novorossiisk will fall to 1.9 million barrels per day (bpd) in July from 2.3 million bpd in June as domestic refineries increase runs, which could further tighten global crude oil supply. The strength of the U.S. economy, evidenced by robust economic data, has played a vital role in supporting crude oil prices. The drawdown in U.S. oil stocks not only alleviates oversupply concerns but also indicates healthy demand for oil, bolstering market confidence in price stability. Ahead in the week, prices of crude oil may continue to witness selling pressure where it may take support near 5500 levels and could face resistance near 6200 levels. The natural gas bull is going amid prospects for warmer temperatures that could see Americans cranking up their air-conditioners more than usual this summer. Working gas in storage was 2,805 Bcf as of, June 23, 2023, according to EIA estimates. This represents a net increase of 76 Bcf from the previous week. Stocks were 566 Bcf higher than last year at this time. Ahead in the week, prices may continue to trade in the range of 196-240 levels where buying near support is advised.
Base metals may trade in range on mixed fundamentals as the prices may get support on Chinese stimulus hopes and decline in exchange inventories, but weak Chinese data and prospects of further rate hikes are weighing on the counter. China's economic growth has slowed in recent months, raising hopes for stimulus. The country plans to promote household consumption and has pledged more steps to boost demand. China’s factory activity in June contracted for a third month, while non-manufacturing activity was at its weakest since Beijing abandoned its strict “zero Covid” policy late last year. Copper may trade in the range of 695-730. Copper supply concerns are also mounting as mine disruptions continue in key producing countries such as Chile and Peru. Copper stockpiles in LME-registered warehouses remains close to its seven-week low, LME data showed. The market is expected to remain in deficit in 2023, which should keep prices elevated. Zinc can trade in range of 203-223. Lead can move in the range of 178-186. Aluminum may trade in the range of 190-208. The inventory of this metal in LME-approved warehouses slid to 531,225 metric tons, the lowest since mid-April, after 3,125 metric tons of outflows, mainly from Port Klang in Malaysia. Cancelled warrants in Port Klang now amount to 80% of the total stock. Steel long (July) is likely to trade in the range of 45000-47500 with weak bias on NCDEX. Global steel demand will likely to decline on weaker offtake by the Chinese construction sector. Steel prices in China fell for the third consecutive week in June, as demand weakened and steel mills increased production.
Cotton prices are likely to trade mixed to down due to muted industrial demand. Reports of rising area under cotton in Gujarat are likely to weigh on market sentiments. Gujarat cotton sowing until June 26 was reported at 13.06 lakh hectares from 10.86 lakh hectares a year ago. Kharif sowing is yet to pick up with advancement of monsoon. North Indian cotton prices have remained almost steady as demand and supply were limited. Cotton arrivals reduced to less than 1,000 bales of 170 kg. Meanwhile, spinning mills were slow in making new purchases due to poor demand from the weaving industry. Cotton MCX July prices are likely to trade in range of 52000-58000 levels. Similarly, Kapas Apr’24 futures are likely to trade in range of 1440-1530 levels.
Cotton seed oil cake NCDEX July futures are likely to trade mixed to high due to slower arrival pace in the market. Surging prices of rival oil meals are likely to keep market sentiments up for cotton seed oil cake. Cotton seed oil cake July prices are likely to trade in range of 2420- 2750 levels.
Guar seed July futures is likely to trade mixed to higher on increased physical demand. Major focus of market has shifted towards sowing progress. Area under guar is expected to fall in year 2023 in wake of significant rise in area under bajra and moong in Rajasthan. Sowing activities is yet to pick up but overall area is likely to be down due to lower realization on guar that will lead to shift in area of guar to other profitable crops. However, weakness in crude oil prices will cap the gains in guar. Guar seed prices will trade in range of 5350-5800 levels in near term wherein Guar gum prices are likely to trade in range of 10200-11500 levels.
Mentha oil July contract is likely to trade sideways to down due to increased supplies in the market. Weather condition has remained favorable for crop progress that has resulted into rise in yield. Prices have dropped to multiyear low due to demand concerns. Export demand of menthol has been bleak that will keep prices under pressure. Mentha oil July prices are likely to trade in range of 870-940 levels.
Castor seed prices are likely to trade mixed to higher on increased buying against limited availability at major trading centers. However, gains will be limited due to higher production and limited export demand of castor oil. Overall Production is estimated at 18.82 lakh tonnes in year 2023 higher by 16% Yo- Y. Castor seed July prices are likely to trade in range of 5550 -6000 levels.
It closed at Rs. 69596.00 on 29th Jun 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 73843.33. On the daily chart, the commodity has Relative Strength Index (14-day) value of 27.388. Based on both indicators, it is giving a sell signal.
One can sell near Rs.69700 for a target of Rs. 67000 with the stop loss of 70500.
It closed at Rs. 211.20 on 29th Jun 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 223.843. On the daily chart, the commodity has Relative Strength Index (14-day) value of 43.359. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 215 for a target of Rs. 205 with the stop loss of 220.
It closed at Rs. 5792.00 on 29th Jun 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 5889.88 On the daily chart, the commodity has Relative Strength Index (14-day) value of 66.888. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 5830 for a target of Rs. 6150 with the stop loss of 5700.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
CRB faced resistance near 300 levels and continued to fall last week too, meanwhile dollar index appreciated for the second week. The U.S. dollar traded higher after Fed Chair Jerome Powell reaffirmed that more rate increases are likely as the leaders of the major central banks sent hawkish signals from the European Central Bank's annual gathering in Sintra. In the bullion counter, gold prices slipped further whereas silver recovered from the low. However, on MCX, silver closed in red. In the energy complex, crude oil recovered from the low and closed sideways. Natural gas prices witnessed profit booking from the higher side. On MCX, crude oil appreciated marginally while natural gas saw some pause in the rally. Oil prices edged higher with Brent poised for its first monthly gain this year, as a big drawdown in U.S. oil stocks outweighed concerns that fuel demand will be dented further by more interest rate hikes. Despite the probably monthly gain, on a quarterly basis, Brent looks set for a loss of around 6% while WTI appears headed for a decline of about 7%. Markets are worried about tightening supply after the U.S. Energy Information Administration (EIA) said crude inventories dropped by 9.6 million barrels in the week ended June 23, far. Base metals were weak on appreciation in dollar index amid by weak Chinese economic data and fears of interest rate hikes. U.S. Gross Domestic Product (GDP) in the first quarter was revised up to a 2.0% annualized rate from the 1.3% pace reported previously. China's manufacturing activity contracted for a third straight month in June, albeit at a slower pace. Non-manufacturing activity also fell in June. Concerns over slowing industrial activity across the globe dented base metals appeal, as traders feared a corresponding slowdown in demand for base metal.
Castor seed enjoyed the recovery. Cotton oil seed cake too closed above 2500 levels. Cotton continued its downward journey. Guar counter zoomed up on El Nino talk. Area under guar is expected to fall in the year 2023 in wake of significant rise in area under bajra and moong in Rajasthan. Sowing activities is yet to pick up but overall area is likely to be down due to lower realization on guar that will lead to shift in area of guar to other profitable crops. In spices, jeera prices slipped from higher side as millers are going for need based buying at prevailing levels, dhaniya closed in green. Coriander couldn’t sustain on higher side. Better realization to farmers will lead to rise in arrivals in the market. Turmeric prices strengthened on slower sowing progress in major producing states like Maharashtra, Telangana and Karnataka caused by bleak monsoon.
The South-West monsoon is considered vital for the cultivation of Kharif crops, which are heavily dependent on rain as the quantity of rainfall determines the production numbers in the case of these crops. Crucially, it is closely linked to the economic growth of the country. According to experts, good and timely rainfall has a positive impact on agricultural production, which is likely to raise consumer demand.
The monsoon, which had a slow start, has now made swift progress, covering numerous regions, including some parts of Maharashtra, entire Karnataka, Kerala, Tamil Nadu, Chhattisgarh, Odisha, northeast India, West Bengal, Jharkhand, Bihar, east Uttar Pradesh, Uttarakhand, most parts of Himachal Pradesh, and some parts of Haryana, the weather office said. Not only has the cumulative rainfall deficit for June 1-26 come down to 18.9 per cent, the monsoon has covered roughly 95 per cent of the country, according to IMD reports. India is expected to get normal rainfall during the southwest monsoon season despite the evolving El Nino conditions, the IMD had earlier said.
Conditions are favorable for further advance of southwest monsoon into some more parts of Gujarat, Rajasthan, Haryana and Punjab during the next 4-7 days, the India Meteorological Department (IMD) said in its latest forecast. Meanwhile, nearly two weeks of relatively good rainfall over many parts of the country has significantly reduced the monsoon deficit for June. However, as of now, Northwest India is the only region that has received better than expected rainfall.
Kerala, the gateway of the monsoon into the country, has received 65 per cent deficient rainfall so far, according to the India Meteorological Department (IMD).
Subnormal rains in the remaining part of the monsoon season (June- September) can potentially impact not only the current kharif. Its effects can extend even to ensuing rabi (winter-spring) crops grown using the groundwater and dam reservoirs that are recharged/refilled during the monsoon.
The current swift progress of monsoon is good for the plantings of rice, millets, maize, cotton, soyabean, groundnut, arhar, moong, urad and other kharif crops. But crops need water not just for their seeds to germinate, but also during the vegetative and early reproductive growth stages when they are developing roots, stems, leaves and flowers. Therefore, July and August rains matter as much as June for the size of the crops to be harvested from September-end.
The Indian rupee has shown resilience and is on track to record its largest monthly gain against the U.S. dollar since January. The currency's performance has been bolstered by consistent foreign equity inflows into the Indian market. Despite challenges such as the weakness of the Chinese yuan and the hawkish stance of the U.S. Federal Reserve, the rupee has managed to hold steady around the 82 level. In June, the rupee outperformed several Asian peers, including the offshore yuan, Thai baht, and Indonesian rupiah. Throughout the month, Indian equities have witnessed a surge of over $3.5 billion in foreign inflows, contributing to the rupee's strength. This influx of funds has propelled both the domestic indices to reach record highs. The significance of these foreign inflows cannot be understated, as they have helped the rupee remain resilient despite external factors. Looking forward, the performance of the Indian rupee will continue to be influenced by global factors, including the actions of the U.S. Federal Reserve, economic indicators, and foreign investor sentiment. The sustained inflow of foreign funds into Indian equities remains a crucial factor in supporting the rupee's strength and stability. Meanwhile Dollar Index gained the most in two weeks after Fed’s resumed its hawkish narrative, which pushed down EURINR and GBPINR from its multi-weeks high. We think the weakness in both euro and pound will continue in next week.
USDINR (JUL)pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 82.21. However, the pair is in neutral territory with a Relative Strength Index (14-day) value of 43.5 on the daily chart. Major support is seen around 81.75 levels, while resistance is expected near 82.6 levels.
One can buy near 82 for the target of 82.6 with the stop loss of 81.7.
GBPINR (JUL)pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 103.85. However, the pair is in neutral territory with a Relative Strength Index (14- day) value of 50.8 on the daily chart. Major support is seen around 103.22 levels, while resistance is expected near 104.7 levels.
One can sell near 104 for the target of 103 with the stop loss of 104.5.
EURINR (JUL) pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 89.4. However, the pair is in neutral territory with a Relative Strength Index (14-day) value of 49.21 on the daily chart. Major support is seen around 89 levels, while resistance is expected near 90.23 levels.
One can sell near 89.5 for the target of 88.5 with the stop loss of 90.
JPYINR (JUL) pair is currently in an Bearish trend as trading below its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 58.34. However, the pair is in oversold territory with a Relative Strength Index (14-day) value of 24.84 on the daily chart. Major support is seen around 56.5 levels, while resistance is expected near 58.35 levels.
One can buy near 57 for the target of 58 with the stop loss of 56.5.
(1.5/5)
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The company intends to utilize the net proceeds from
the issue towards the funding of the following objects:
Investment by way of equity in our subsidiary,
Halaipani Hydro Project Private Limited for the
development of Hydro Power Project (Civil
Construction and Electromechanical Works),
Investment in Garuda Construction project, for
funding long-term working capital requirements,
Acquisitions and other strategic initiatives; and
To fund expenditures towards general corporate
purposes.
Considering the P/E valuation, on the upper end of the price band of Rs.148, the stock is priced at pre issue P/E of 18.22x on an estimated annualised FY23 EPS of Rs.8.13. Post issue, the stock is priced at a P/E of 23.41x on its EPS of Rs 6.32. Looking at the P/B ratio at Rs.148, pre issue, book value of Rs. 126.86 of P/Bvx 1.17x. Post issue, book value of Rs. 131.56 of P/Bvx 1.12x.
Considering the P/E valuation, on the lower end of the price band of Rs.140, the stock is priced at pre issue P/E of 17.23x on an estimated annualised FY23 EPS of Rs.8.13. Post issue, the stock is priced at a P/E of 22.15x on its EPS of Rs.6.32. Looking at the P/B ratio at Rs.140, pre issue, book value of Rs. 126.86 of P/Bvx 1.17x. Post issue, book value of Rs. 131.56 of P/Bvx 1.06x.
Incorporated in 2000, PKH Ventures Limited is engaged in the business of Construction & Development, Hospitality, and Management Services. PKH Ventures executes Civil Construction works for Third Party Developer projects. The Civil Construction business is executed by its Subsidiary and construction arm, Garuda Construction. The company concluded the development of the Delhi Police Headquarters in April 2021, which involved the construction of twin towers of seventeen (17) storeys each, with a complete glass façade and steel bridge connecting the two towers. The company is proposing to develop its own Forthcoming Development Projects, which include real estate development at Amritsar, Punjab; a food park at Jalore, Rajasthan; cold storage park/facilities at Indore, Madhya Pradesh; and a wellness center & resort at Chiplun, Maharashtra.
Established Track Record:The company currently owns and manages two (2) hotels and manage and operate one (1) resort, four (4) restaurants, four (4) banquets and two (2) Spas. The company, through its subsidiary, Garuda Construction provides end-to-end construction services for residential, hospitality and commercial building projects. Garuda Construction has executed seven (7) Civil Construction/Works projects, including the development and refurbishment of its Mumbai Hotels and the construction of the Delhi Police Headquarters on DBFOTA basis in April, 2021 which include construction of twin towers of seventeen (17) storeys each, with a complete glass façade and steel bridge connecting the two towers.
Visible growth:The company is currently engaged in the Civil Construction of six (6) residential projects for Third Party Developers and Promoter Group in the MMR. As of March 15, 2023, the Garuda Construction’s Third Party Developer Order Book was Rs. 468.28 Crore. The company is awarded two (2) Government Projects, viz., the Hydro Power Project and the Nagpur Project with estimated aggregate cost of Rs. 213.83 Crore. Further, the Company has recently been awarded with three (3) Government Hotel Development Projects i.e. Rajnagar Garhi Project, Pahadikhurd Project and Tara Resort Project in the State of Madhya Pradesh on DBFOT basis by way of a letter of award each dated November 4, 2022 from the Madhya Pradesh Tourism Board. The company believes that the increasing number of construction work and projects help it to maintain the momentum of its growth and enhanced reputation.
Asset light model of its Civil Construction business:The company believes in the asset light model approach for its Civil Construction business and rely mostly on third party suppliers for equipment and labours. Following the asset light model, the company believes that the Company has prudently invested its financial resources in equipment and machinery for day-to-day use for its Civil Construction business.
Expand into diversified projects:The company believes that diversifying into new areas in the Construction & Development vertical will increase its financial and technical ability making it eligible to bid for larger future projects and to effectively leverage its experience in the execution of such projects. The Company proposes to develop a multicommodity cold storage facility near Indore at District Khargone in the State of Madhya Pradesh. The land for this project admeasuring 24,940 sq. mtrs. owned by its Promoter has been made available to the Company on revenue sharing basis for a period of thirty (30) years to be effective on the commencement of operations, after necessary approvals are received from the government authorities.
Expanding its Hospitality portfolio: The company considers the hospitality sector to be a growth driver. Over the last five years the sector registered a CAGR of 8.31% from FY15 to FY20. The industry has registered a de-growth of 53% in FY21. The size of the industry has declined from Rs. 4.2 lakh crores in FY20 to Rs. 2.0 lakh crores in FY21. The company intends to expand its restaurants operations by leveraging its hospitality experience and brands in malls, entertainment zones, other high street locations and by bidding for airports service contracts, wherever it sees opportunity.
Leverage its business growth:The company intends to build on its existing relationships with its joint venture partners and also create new joint venture relationships for its future projects, particularly for large value projects in its existing business segments and also for entering into new business segments.
PKH Ventures execute civil construction works for third-party developer projects and have also been awarded two government projects. The company is proposing to develop its own Forthcoming Development Projects, which include real estate development, a food park, cold storage park/facilities, and a wellness center & resort. However, the company derives significant revenues from the Construction & Development vertical and its financial condition would be materially and adversely affected if it fails to obtain new contracts or its current contracts are terminated.
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Bajaj Finserv Asset Management has announced the launch of Bajaj Finserv Liquid Fund and Bajaj Finserv Overnight Fund, two of the first seven schemes that it had filed with the Securities and Exchange Board of India (SEBI). The new fund offer of these schemes is open for subscription and will close on July 4. Bajaj Finserv Liquid Fund is an open-ended scheme that invests in debt and money market instruments with a maximum maturity of up to 91 days and is suitable for creating an emergency fund as it offers easy liquidity and quick redemption options. Designed for entrepreneurs and corporates who constantly need to park large sums of money for a short period until it can be deployed elsewhere, Bajaj Finserv Overnight Fund invests in money market and debt instruments with overnight maturity. Both these Debt Funds are designed for retail, HNI and institutional investors, and will be available across 20,000 mutual fund distributors as well as through the company’s digital channels. This is in line with the company’s overall strategy to create a tech-driven, multi-channel approach to serve investors across various touchpoints and geographies in order to build a future-ready asset management company.
Quant Mutual Fund has launched Quant Healthcare Fund, an open-ended equity scheme investing in the healthcare sector. The new fund offer of the scheme is open for subscription, and it will close on July 11. The performance of the scheme will be benchmarked against S&P BSE Healthcare TRI . The scheme will be managed by Sandeep Tandon, Ankit Pande, Sanjeev Sharma and Vasav Sahgal. The investment objective of the scheme is to seek long term capital appreciation by investing in equity/equity related instruments of companies from the healthcare sector. The scheme will invest at least 80% in healthcare, life sciences, insurance and wellness companies that are expected to benefit from increased investments in healthcare infrastructure and service delivery, including advanced medical technology. These include pharmaceuticals, biotech, hospitals, medical devices, diagnostic services, clinical trials, outsourcing, telemedicine, medical tourism, health insurance, medical equipment, MedTech etc. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter. The scheme will offer a regular plan and direct plan – with growth and IDCW options.
Axis Mutual Fund announced the launch of Axis Nifty IT Index Fund, an open-ended index fund tracking the NIFTY IT TRI. Axis Nifty IT Index Fund will track the NIFTY IT TRI and aim to provide returns before expenses that correspond to the total returns of the NIFTY IT TRI, subject to tracking errors. The minimum investment amount is Rs 5,000 and in multiples of Re 1. Hitesh Das (Fund Manager) would be managing the fund. The main objective of an Index Fund is to replicate a stock market index in terms of the portfolio. All the stocks in these indices will find some representation in their investment portfolio. Essentially, this ensures a performance fairly identical to that of the index being tracked. Within Index Funds, investors have the option to invest in certain Sector Based Index Funds as well, with the aim to capitalize on the growth opportunity provided in that particular sector.
DSP Mutual Fund has filed a draft for a multicap fund. DSP Multicap Fund will be an open-ended equity scheme investing across large cap, mid cap, small cap stocks. The scheme will be benchmarked against Nifty 500 Multicap 50:25:25 TRI. The scheme will be managed by Chirag Dagli, Jay Kothari (fund manager for overseas investments). The investment objective of the scheme is to seek to generate long-term capital appreciation from a portfolio of equity and equity related securities across market capitalization. According to the scheme information document, the minimum application amount will be Rs 100 and any amount thereafter. The minimum installment amount for SIP/SWP/STP will be Rs 100 and any amount thereafter. The scheme's riskometer shows that the scheme will fall in the 'very high risk' category. The scheme will have a regular and a direct plan with growth and IDCW options. The scheme will allocate its assets of around 75-100% in equity and equity related securities, 0-25% in equity and equity related overseas securities, 0-25% in debt and money market instruments, and 0-10% in units issued by REITs & InvITs. The portfolio construction will be based on a “bottom up” approach as well as a “top down” approach.
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