Watch Our Live Call Update: December 2017

Sunday 31 December 2017

Capitalstars| Top 10 stocks rose up to 137% in 2017, but can still rally up to 26% in 2018 :- 30 Dec, 2017

The market is expected to continue its rally next year as well, but the gains may be less compared to 2017 as the coming year is expected to be volatile due to events like state elections and full-fledged Budget of Modi government before going into general elections 2019, experts suggest.

What a year it was! The 30-share BSE Sensex registered 28 percent gains in the year 2017 to end at a record closing high on the last day of the year.

The broader markets not only participated in the bumper rally but also outperformed frontline indices as the Nifty Midcap surged 48 percent. All sectoral indices, too, closed the year on strong note barring Pharma.

The solid rally was largely led by liquidity, which was the king in passing year, followed by Modi government reforms, assembly elections, hopes of corporate earnings growth and positive global cues.

The market is expected to continue its rally next year as well, but the gains may be less compared to 2017 as the coming year is expected to be volatile due to events like state elections and full-fledged Budget of Modi government before going into general elections 2019, experts suggest.

Here is a list of 10 stocks that rallied up to 137 percent in 2017, still have potential to increase up to 26 percent in the coming year:

Brokerage - Motilal Oswal

Dabur India | Rating - BUY| Target - Rs 410 | Return 17%

Nearly 50 percent of Dabur’s domestic sales come from rural India – the highest proportion among FMCG companies – making it an ideal play on rural revival.

For Q2FY18 rural sales grew by 11 percent, faster than its growth in urban sales at 10 percent. Worries on both the wholesale channel due to GST implementation and rural sales are receding faster than expected.

L&T | Rating: BUY| Target Rs 1,440 | Return 15%

Larsen & Toubro (L&T) is exposed to several levers across business/geographic segments and has emerged as the E&C partner of choice in India, which provides a robust foundation to capitalise on the next leg of the investment cycle.

Under its new five-year strategic plan to FY21, LT aims to - 1) grow sales at 12-15 percent CAGR to reach Rs 2 lakh crore by 2021; 2) expand margins to 11.2 percent, up 120bp over FY16, driven by higher profitability in key manufacturing verticals (power, process, forgings and Katupalli yard) and hydrocarbons; 3) unlock value via asset sales to drive return on equity (ROE) to 18 percent from 12 percent in FY16; and 4) reduce working capital to 18 percent of sales from 24 percent currently.

Oberoi Realty: Rating BUY | Target Rs 580 | Return 21%

Oberoi Realty is a Mumbai-focused premium real estate developer, with a presence in the residential, commercial and hospitality segments. It enjoys EBITDA margins of more than 50 percent.

Its residential portfolio comprises 19msf of the developable area, providing strong growth and cash flow visibility over the next 10-12 years. The recent foray into affordable housing completes its bouquet of offerings and should help it enjoy tax incentives.

It plans to multiply its annuity portfolio from 1.6msf to 4.2msf by launching two new malls and an office complex on its existing land bank, which is fully paid for. The expansion will result in leasing income increasing by 4x over the next five years.

Nilkamal: Rating - BUY| Target - Rs 2,215 | Return 21%

Nilkamal is a market leader with 32 percent share in the moulded furniture segment and sells about 1.4 million plastic chairs per annum (one of the largest in India). The plastics division (89 percent of revenue) has grown consistently at 8.3 percent CAGR over FY12-17.

The retail division, @home has a turnaround from negative EBIT to Rs 3.2 crore EBIT profit in FY17. Over FY12-17, Nilkamal's revenue and PAT grew at 7/17 percent as EBITDA margin expanded by 110bps.

We expect margins to further improve. The company has free cash flows with very low leverage (D/E of 0.14x FY17). The return ratios (RoE) improved from 10 percent in FY15 to 18 percent in FY17.

Motherson Sumi: Rating BUY | Target - Rs 458 | Return 21%

Motherson Sumi has four divisions wiring harness (15 percent), polymers (52 percent), mirrors (28 percent) and others components (5 percent), operates 230 plants in 37 countries and has an enviable track record of strong performance with an unwavering focus on capital allocation.

It is in a sweet spot to benefit from evolving disruptive global automotive trends, which would drive its next wave of growth. The latest acquisition of PKC strengthened its presence in commercial vehicle wiring harness segment.

Premium valuations are justified considering sharp improvement in post-tax RoCE (around 21.2 percent in FY20 versus average around 13.4 percent in last 5 years) and the possibility of stronger than expected earnings growth. Value the stock at 25x FY20E consolidated EPS with target price Rs 458.

Brokerage - Axis Direct

SBI Life Insurance: Rating BUY| Target - Rs 850 | Return 21%

SBI Life with its unparalleled distribution network, leadership in new business premium (NBP) among private insurers, strong management team and top quartile service ratios is a proxy play to the huge opportunity in India’s life insurance space.

We expect 19.5 percent enterprise value CAGR over FY17-20E to Rs 28,200 crore driven by around 30 percent CAGR in Value of New Business (VNB) to Rs 2,270 crore in FY20E. We initiate coverage with Buy rating and target price of Rs 850.

InterGlobe Aviation: Rating BUY| Target - Rs 1,505 | Return 26%

It is best placed to capitalise on domestic passenger traffic growth. Indian aviation industry is the fastest growing in the world. The domestic passenger traffic posted CAGR of around 13 percent over last decade (grew at 17 percent YoY in CY17 YTD).

Indigo’s key moat is its low operating cost. Bulk orders help in negotiating significantly lower purchase prices for aircrafts which generate cash incentives – a key driver for its cash flows and earnings.

Endurance Technologies: Rating BUY| Target - Rs 1,550 | Return 14%

Endurance Technologies (ETL) ticks all the boxes of what we like in an auto component firm – (1) high economies of scale – given that it’s the largest 2-wheeler auto component player; (2) one-stop-shop for OEMs – given its strong presence in 4 key products; (3) diversified in terms of products/geography; and (4) consistently outperformed underlying industry.

We see ETL as the best way to play the 2Ws theme in India. Given its unmatched scale, strong R&D, and 4 key products under 1 roof (castings, suspension, transmission, and brakes), it’s a one-stop-shop for OEMs that anyway strive to consolidate their vendor base. Our target price of Rs 1,550 values the company at 15x FY20 EV/EBITDA - a slight premium to its leading auto component peers.

Godrej Agrovet: Rating BUY| Target - Rs 648 | Return 14%

We rarely see companies where all factors align, viz: (1) secular business with deep moat; (2) attractive industry dynamics; (3) strong corporate governance; and (4) excellent management team under a great leader. Godrej Agrovet (GAVL) is one such opportunity.

GAVL will continue its multi-year secular growth; tremendous growth potential in each segment as each business segment. GAVL operates in is either under-penetrated (animal feed) or in high growth areas (dairy, poultry, agri-inputs).

It has strong financials; more than 40 percent PAT CAGR over past 7 years, minimal working capital requirement, RoCE of around 20 percent, high asset turn (~5x). We expect 20 percent PAT CAGR over FY17-21.

Brokerage - HDFC Securities

Jagran Prakashan: Rating BUY | Target - Rs 215 | Return 26%

Jagran Prakashan is India's leading media and communication group. It has a pan India footprint with interests spanning across Print, OOH, Radio and Digital.

The radio industry is expected to grow at an excellent rate going forward due to an increase in listenership. Digital Advertising is the fastest growing vertical in the Indian M&E industry and going forward, we expect high growth on the back of higher internet speed, low cost of bandwidth and Government’s push for ‘Digital India’.

We recommend Jagran Prakashan Buy at CMP of Rs 170.45 (10x of FY20 EPS) and add on decline of Rs 154 for the sequential targets of Rs 199
(12.1x of FY20 EPS) and Rs 215 (13.1x of FY20 EPS).


CapitalStars Award Winning , SEBI registered , ISO certified investment advisory company. We provide intraday & positional services in Equity , derivative ,commodity & currency. Our research is highly skilled & experienced .


Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Saturday 30 December 2017

Capitalstars |Share tips | CS OPENING BELL: 29, Dec 2017

Capitalstars| CS OPENING BELL:


NIFTY SPOT UP 22@10502
SENSEX UP 92@33942
BANK NIFTY FUTURES DOWN 15 @25527
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CapitalStars Award Winning , SEBI registered , ISO certified investment advisory company. We provide intraday & positional services in Equity , derivative ,commodity & currency. Our research is highly skilled & experienced .


Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Friday 29 December 2017

Capitalstars| SEBI orders Axis Bank to conduct internal probe : 28 Dec, 2017


SEBI’s probe reveals Bank's leaked result closely matched with actual figures

SEBI had initiated a preliminary examination in the matter of circulation of unpublished price sensitive information (UPSI) through WhatsApp groups. During the course of preliminary examination, it was observed that in respect of Axis Bank Limited, the messages circulated in WhatsApp groups almost matched with the quarterly financial results of Axis Bank for June 2017, which were published subsequently.

SEBI has therefore asked Axis Bank to conduct an internal enquiry into the source of alleged leakage of UPSI and strengthen its system. SEBI has directed Axis Bank to complete the inquiry within a period of 3 months from the date of the order, and within 7 days from the completion thereof, the Bank has to file a report to SEBI in that regard.

Axis Bank has commented by saying that it has been working closely with SEBI during preliminary examination. The Bank adheres to the highest norms of corporate governance and re-iterated its commitment to adequacy of processes, systems and controls, particularly to prevent unauthorised access to UPSI.

Mr Rajesh Dahiya, ED, Corporate Centre Axis Bank has said, “the Bank will work closely with SEBI and the best experts in the field to investigate the matter and will take action as appropriate”.

This news raises uncertainity on the Bank's future, as the results of the probe will determine if any material person is involved in the leakage and what kind of action SEBI takes.

Axis Bank Ltd is currently trading at Rs549.25, down by Rs5.3 or 0.96% from its previous closing of Rs554.55 on the BSE.

CapitalStars Award Winning , SEBI registered , ISO certified investment advisory company. We provide intraday & positional services in Equity , derivative ,commodity & currency. Our research is highly skilled & experienced .


Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Thursday 28 December 2017

Capitalstars| CS OPENING BELL: NIFTY SPOT DOWN 15@10515

Capitalstars| CS OPENING BELL:


NIFTY SPOT DOWN 15@10515
SENSEX UP 10@34015
BANK NIFTY FUTURES DOWN 45 @25628
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CapitalStars Award Winning , SEBI registered , ISO certified investment advisory company. We provide intraday & positional services in Equity , derivative ,commodity & currency. Our research is highly skilled & experienced .


Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Wednesday 27 December 2017

Capitalstars |Share tips | CS OPENING BELL: 26, Dec 2017

Capitalstars|CS OPENING BELL; 


NIFTY SPOT UP 10@10500
SENSEX UP 22@33960
BANK NIFTY FUTURES DOWN 55 @25612
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CapitalStars Award Winning , SEBI registered , ISO certified investment advisory company. We provide intraday & positional services in Equity , derivative ,commodity & currency. Our research is highly skilled & experienced .


Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Monday 25 December 2017

Capitalstars | Commodity tips |Markets likely to remain range-bound in holiday week amid lack of triggers | Share Tips Expert:- 25 Dec, 2017


Stock markets are likely to trade sideways amid lack of fresh triggers in a holiday-shortened week ahead, say experts.

Stock markets are closed today for Christmas.

"Now that market has already priced-in the positive aura raised on the political front, going forward valuation and transition of reforms into earnings will be the key catalyst to fuel the market sentiment.

"For the week ahead, due to lack of fresh triggers, year end and extended holidays, domestic market is likely to trade sideways but with a positive bias," said Vinod Nair, Head of Research, Geojit Financial Services.

Volatile trading sessions may also be seen amid derivatives expiry on Thursday.

"Going forward we expect quarterly numbers to be very important and that may give a broader cue for market and how will they act in coming months.

"With that, GDP and expectations of Budget and so on will keep investors on their toes," said Mustafa Nadeem, CEO, Epic Research.

Over the last week, the Sensex advanced, notching up a significant 477.33 points, or 1.42 per cent. The Nifty was up 159.75 points, or 1.54 per cent.

CapitalStars Award Winning , SEBI registered , ISO certified investment advisory company. We provide intraday & positional services in Equity , derivative ,commodity & currency. Our research is highly skilled & experienced .


Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Saturday 23 December 2017

Capitalstars| Share tips Expert| Rs 67,141 crore raised through IPOs in 2017: Will 2018 offer a better deal? :- 23 Dec, 2017


Calendar 2017 saw a flurry of IPOs supported by liquidity, which pushed the benchmark indices to record highs. The surging stock market on the back of return of foreign institutional investors, and strong investor sentiment, creating a bullish investment climate and historically low volatility as the government's economic reform initiatives have led to a rush of new issues and stellar performance by the newly-listed stocks. 

With various government policies going in favour of faci .. 

Moreover, the IPO market got a boost on the back of government plan to divest its holdings in some of the public sector undertakings. 

Also, a surge in the secondary market has encouraged many companies to go to public in search of better valuations. Actually, weak performance of gold, real estate, or bank fixed deposits has forced investors to shift to equities as the preferred source of investment. A total of 36 companies from the various sectors -- namely insurance, financial services, FMCG, hospitals and logistics -- have raised nearly Rs 67,141 crore during CY2017, which is also a record at least in last 10 years. 

To note, insurance companies namely ICICI Lombard General Insurance, SBI Life Insurance, HDFC Standard Life Insurance, General Insurance Corp and New India AssuranceBSE -0.64 % have hit the market to raise close to Rs 45,000 crore. The contribution through new listing to Indian market-cap is at a seven-year high of 3 per cent. 

Beyond getting listed, a favourable IPO market has helped several promoters to raise much-needed capital for business expansion and working capital needs. 

On the flip side, current market valuations have offered a great opportunity to existing investors. PE investors that wanted to exit companies garnered huge money through the offer for sale route. 

IPOs are attractive investments. The current upsurge is expected to last as long as the upswing in the secondary market continues. Some companies such as ICICI Securities, ACME Solar Holdings, HG Infra, Indiamart and Krishna Institute of Medical Sciences -- to name a few -- are expected hit the market in CY2018. 

Undoubtedly, the IPO market has rewarded investors with good returns and it is expected that it would continue to perform in 2018 as well. The performance of the recently-listed companies will determine the future course for the IPO market. 

CapitalStars Award Winning , SEBI registered , ISO certified investment advisory company. We provide intraday & positional services in Equity , derivative ,commodity & currency. Our research is highly skilled & experienced .


Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Capitalstars |Share tips Expert | CS OPENING BELL: 22, Dec 2017

Capitalstars|CS OPENING BELL; 


NIFTY SPOT UP 26@10465
SENSEX UP 92@ 33850
BANK NIFTY FUTURES UP 15 @25635
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CapitalStars Award Winning , SEBI registered , ISO certified investment advisory company. We provide intraday & positional services in Equity , derivative ,commodity & currency. Our research is highly skilled & experienced .


Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Friday 22 December 2017

Capitalstars |Share tips Expert | CS OPENING BELL: 21, Dec 2017

Capitalstars|CS OPENING BELL; 


NIFTY SPOT UP 10@10457
SENSEX UP 22@33805
BANK NIFTY FUTURES DOWN 32 @25630
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CapitalStars Award Winning , SEBI registered , ISO certified investment advisory company. We provide intraday & positional services in Equity , derivative ,commodity & currency. Our research is highly skilled & experienced .


Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Thursday 21 December 2017

Capitalstars|CS OPENING BELL; NIFTY SPOT UP10@10484

Capitalstars|CS OPENING BELL; 


NIFTY SPOT UP10@10484
SENSEX UP 18@33852
BANK NIFTY FUTURES DOWN 42 @25665
Quick Trial-http://www.capitalstars.com/free-trial/
Register Now..!!! 

CapitalStars Award Winning , SEBI registered , ISO certified investment advisory company. We provide intraday & positional services in Equity , derivative ,commodity & currency. Our research is highly skilled & experienced .


Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

Wednesday 20 December 2017

Capitalstars |Share tips Expert | CS OPENING BELL: 19, Dec 2017

Capitalstars| CS OPENING BELL ; 


NIFTY SPOT UP 38@10425
SENSEX UP 122@33725
BANK NIFTY FUTURES UP 85@25697
Quick Trial-http://www.capitalstars.com/free-trial/
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CapitalStars Award Winning , SEBI registered , ISO certified investment advisory company. We provide intraday & positional services in Equity , derivative ,commodity & currency. Our research is highly skilled & experienced .


Investment & Trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance.CapitalStars Investment Adviser: SEBI Registration Number: INA000001647