Dalal Street Investment Journal - July 09, 2019

DSIJ.in JULY 8 - 21, 2019 I DALAL STREET INVESTMENT JOURNAL (^65)
Kerbside
The stock has
witnessed a
smart rally from
the lower levels.
The stock has
recorded more than 10-day average
volumes on Tuesday along with a
sizeable bullish candle. The stock has
managed to close and trade
consistently above its short term
moving average, i.e. 20-DMA, which
is positive for the stock. Also, there
are some murmurs on the D-Street
that some smart traders are buying
this stock in anticipation of a better
performance in the upcoming
quarterly results. Hence, traders with
high risk appetite can initiate a long
position at the current level.
The stock has witnessed an eye-popping upmove in the last two
weeks or so. The stock has rallied over 20 per cent in the
otherwise dull market after it received approval from Gujarat
Electricity Regulatory Commission (GERC) for the power
procurement arrangement of 278 MW between the company’s
UNOSUGEN power plant (capacity of 382.5 MW) and its licensed
distribution business for cities of Ahmedabad, Gandhinagar and
Surat. The approval, with certain stipulations, is for the balance
life of the plant, i.e., for 19 years. According to the grapevine,
there is still a long way to go for the stock price.
RESULTS
AND FINALLY..
Tata Elxsi
BSE Code: 500408
CMP: 921.30 Marico BSE Code: 531642 CMP:373.65
Torrent Power
BSE Code: 532779
CMP: 301.15 The recommendations provided in this column are taken from various market sources such as brokers, analysts, dealers and investment strategists, etc. These recommendations may not be backed by strong fundamentals. Therefore we advise readers to use their own discretion before investing in these recommendation DS (Closing price as of July 02, 2019) The FMCG major, known for its flagship product Parachute oil, is eyeing more launches in the premium personal-care and food categories to shore up margins. One of the key officials of the company has indicated that investment will focus on driving growth rather than just shoring up turnover. The premium new offerings will first be introduced online before extending them to modern trade. Risk-takers can go for this scrip and hope to make some quick buck. The stock of life insurance companies have been in the limelight light on the bourses lately. Out of this pack, our sources suggest that the stock of HDFC Life Insurances still has some steam left. There are multiple tailwinds for the stock. The company posted a strong growth in its market shares, which advanced to 9.24 per cent in May 2018 from 7.07 per cent in January 2019, which is a gain of 217 bps. Moreover, the company’s premiums in the month of May registered a staggering growth of 52.03 per cent YoY. In terms of segmental performance, HDFC Life’s individual single premium in the month of May grew 68.25 per cent YoY. The future prospects of the company look bright and, hence, traders and investors can take a bet on this stock. STRONG GROWTH HDFC Life Insurance Company BSE Code: 540777 CMP:470.00
MARGINS TO IMPROVE