14 DALAL STREET INVESTMENT JOURNAL I JULY 10 - 23 , 2017 DSIJ.in^
(Closing price as of July 04, 2017)The scrips in this
column have been
recommended
with a 15-day investment
horizon in mind and
carry high risk. Therefore,
investors are advised to
take into account their risk
appetite before investing,
as fundamentals may
or may not back the
recommendations.
GRANULES INDIA
ASHOK LEYLAND
BSE CODE
532482BSE CODE
500477Volume
180575Volume
2642193Face Value
` 1Face Value
` 1CMP - ` 140
CMP - `99.
T
he company is a manufacturer of
Paracetamol and is engaged in
pharma manufacturing chain from
API to finished dosages. It is mulling
capacity expansion for its major drugs
Paracetamol, Metformin and Guaifenesin,
for which it is incurring capex of ` 300
crore. Apart from this, the company has
recently entered into CRAMS business
through a JV with Omnichem and has
ventured into making of Rx drugs and has
filed ANDAs. On the financial front, it
posted a PAT growth of nearly 17 per cent
in Q4FY17 despite tepid revenue growth
of just 0.7 per cent. On an annual basis, it
posted a robust PAT growth of nearly 39
per cent despite of revenue de-growth in
FY17. Taking into consideration of a
forward FY18 P/E of nearly 17 and 30 per
cent PAT CAGR over FY17-19, we
recommend a Buy, for a target of ` 161
and with a stop loss of `125.A
flagship of the Hinduja Group, the
company is one of the top commercial
vehicle manufacturers and holds
market share of nearly 27 per cent in trucks in
India. Recently, the company has reported 11
per cent MoM growth in its June sales where
LCVs and M&HCVs posted 29 per cent and
6 per cent growth, respectively. To comply
with the recent BS IV norms, it has come up
with iEGR technology and is expected to
boost fuel efficiency and give cost advantage.
The company is simultaneously expecting
growth in its CV business by increasing its
product line. On the defence front, it is
expected to focus on tactical, armed and
tracked vehicles. Financially speaking, the
company posted robust revenue and PAT
growth of 46.5 per cent and 194 per cent
respectively in Q4FY17. On an annual basis,
it has posted tepid 5.7 per cent revenue
growth while posting strong PAT growth of
213 per cent. With favourable monsoons,
product diversification and cost reduction
plans, we recommend Buy in the stock for a
target of `112 and a stop loss of `94.Scrip’s Movement
1201251301351401451.Jun 12.Jun 22.Jun 4.JulLast Seven Days’ Volume Table
(No. of Shares)Days Volume
23-Jun-17 1,19,
27-Jun-17 1,87,
28-Jun-17 1,88,
29-Jun-17 95,
30-Jun-17 47,
3-Jul-17 1,85,
4-Jul-17 1,80,Issue No 14 ,June 12 - 25, 2017
SRG Housing Finance 186.00 192.75 3.
NCL Industries 206.00 225.50 9.
Issue No 15 ,June 26 - July 9, 2017
VIP Clothing 67.85 70.00 3.
Tata Elxsi 1618.00 1688.00 4.
*Highest price after our recommendationsHot Chips of Last One Month
Reco. Peak Likely
Price After Gain
(`) Reco* (%)868890929496981001021.Jun 12.Jun 22.Jun 4.JulScrip’s Movement
Last Seven Days’ Volume Table
(No. of Shares)
Days Volume
23-Jun-17 3,83,
27-Jun-17 5,22,
28-Jun-17 7,20,
29-Jun-17 5,77,
30-Jun-17 6,48,
3-Jul-17 56,32,
4-Jul-17 26,42,193 D
SRecommendationsRecommendations Equity
20172017