Jhaveri diwali 2019

JHAVERI Diwali Picks 2019 (Samvat 2076) This year was unprecedented in view of the wealth destructions in the market But many factors including the Government initiatives have potential to limit the down side and provide good investment opportunity in select sectors and scripts Factors like  Good Monsoon  Corporate Tax Cut  Bottoming Out Of NPA in Banks  US Policy to shift Investment From China  Business Friendly stance of RBI  Attractive Valuation Will be a driving force in the market in next Samvant Year We are of the opinion that from medium to long term perspective (from to years) , it is advisable to focus on quality stocks having clear visibility of revenue growth and cash generation There are every chance that big selling by FPIs and FIIs has come to an end with liquidity easing by the Central Banks of the World The risk of Global recession and decline in Global growth rate is always there but focusing only quality stocks with good management will be fruitful from medium to long term perspective Wish you a Very Happy Diwali and A Prosperous New Year! JHAVERI Diwali Picks 2019 (Samvat 2076) Company CMP Recommendation Buy Range Target Range Larsen & Toubro Limited 1424 Buy 1320-1500 1680-1740 ICICI Bank Limited 441 Buy 384-460 540-564 HCL Technologies Limited 1090 Buy 1010-1130 1258-1280 SBI Life Insurance Company Limited Marico Limited Avenue Supermarts Limited (Dmart) Zydus Wellness Limited Reliance Nippon Life Asset Management Limited Amara Raja Batteries Limited 909 384 Accumulate Buy 840-940 360-400 1022-1049 480-510 1917 Accumulate 1860-1940 2160-2230 1661 Accumulate 1530-1750 1960-2020 272 Buy 230-290 346-364 666 Buy 624-700 796-840 1390 Accumulate 1310-1420 1580-1660 Reliance Industries Limited * BV and PBV multiples are for banks and NBFCs # CMP as on October 14, 2019 Larsen and Tubro CMP: Rs 1424 Company Overview: Sector: Infrastructure Market cap (Rs crore) 199,853 Cr 52-week high/low (Rs.) 1607.00 / 1182.50 P/E Ratio 22.19 ROCE 13.46 % Sales Growth 11.72 % Dividend Yield 1.26 % SOURCE: JHAVERI SECURITIES LTD Larsen & Toubro Limited (L&T) is a technology, engineering, construction and manufacturing company It is one of the largest and most respected companies in India`s private sector More than seven decades of a strong, customer-focused approach and the continuous quest for world-class quality have enabled it to attain and sustain leadership in all its major lines of business L&T has an international presence, with a global spread of offices A thrust on international business has seen overseas earnings grow significantly It continues to grow its global footprint, with offices and manufacturing facilities in multiple countries The company`s businesses are supported by a wide marketing and distribution network, and have established a reputation for strong customer support .The company also in the business activities of Power, Infrastructure, Electrical & Electronics, Engineering Construction, Metallurgical & Material Handling ICICI Bank Ltd Sector: Bank - private sector Market cap (Rs crore) 281,201 Cr 52-week high/low (Rs.) 458.65 / 310.20 P/E Ratio 41.58 ROCE 4.82 % Sales Growth 6.68 % Dividend Yield 0.23 % SOURCE: JHAVERI SECURITIES LTD CMP: Rs 441 Company Overview: ICICI Bank Ltd is India`s second-largest bank The service offered by the company includes Deposits, Loans , Cards, Investments & Insurance & Demat In the NRI segment services offered include Money Transfer, Bank Accounts, Investment, Home Loans, Insurance, Loans against FD etc HCL Technologies Ltd Sector: IT – Computer Software Market cap (Rs crore) 149,346 Cr 52-week high/low (Rs.) 1190.00 / 920.00 P/E Ratio 15.06 ROCE 30.67 % Sales Growth 24.74 % Dividend Yield 0.73 % SOURCE: JHAVERI SECURITIES LTD CMP: Rs 1090 Company Overview: HCL Technologies Ltd is a leading global IT services company It has portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO The company also in the business activities of IT services, Infrastructure Services, Business Process Outsourcing Services SBI Life Insurance Company Ltd Sector: IT – Insurance Company Overview: Market cap (Rs crore) 87,735 Cr 52-week high/low (Rs.) 892.50 / 495.00 P/E Ratio 71.70 ROCE 23.39 % Sales Growth 32.16 % Dividend Yield 0.23 % SOURCE: JHAVERI SECURITIES LTD CMP: Rs 909 SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif SBI Life extensively leverages the State Bank Group relationship as a platform for cross-selling insurance products along with its numerous banking product packages such as housing loans and personal loans Marico Ltd CMP: Rs 384 Sector: IT – FMCG Market cap (Rs crore) 49,114 Cr 52-week high/low (Rs.) 404.00 / 295.10 P/E Ratio ROCE 41.29 40.80 % Sales Growth 6.82 % Dividend Yield 1.25 % SOURCE: JHAVERI SECURITIES LTD Company Overview: Marico is engaged in business is branded Consumer products Avenue Supermarts Ltd (Dmart ) Sector: IT – Retail Company Overview: Market cap (Rs crore) 116,735 Cr 52-week high/low (Rs.) 1945.05 / 1125.75 P/E Ratio 107.63 ROCE 25.57 % Sales Growth 36.76 % Dividend Yield 0.00 % SOURCE: JHAVERI SECURITIES LTD CMP: Rs 1917 Avenue Supermarts is primarily engaged in the business of organized retail and operates supermarkets under the brand name of D-Mart Zydus Wellness Ltd Sector: IT – Health and wellness Market cap (Rs crore) 9,502 Cr 52-week high/low (Rs.) 1860.20 / 1085.00 P/E Ratio 42.31 ROCE 6.44 % Sales Growth 28.56 % Dividend Yield 0.30 % SOURCE: JHAVERI SECURITIES LTD CMP: Rs 1661 Company Overview: Zydus Wellness is headquartered in Ahmedabad and the Company manufactures an innovative range of health and wellness products across three manufacturing facilities one in Gujarat and two in Sikkim that are distributed and marketed panIndia Reliance Nippon Life Asset Mgmt Ltd Sector: Asset Management companies Market cap (Rs crore) 15,959 Cr 52-week high/low (Rs.) 289.05 / 120.20 P/E Ratio ROCE 32.65 28.19 % Sales Growth 7.73 % Dividend Yield 2.30 % SOURCE: JHAVERI SECURITIES LTD CMP: Rs 272 Company Overview: Reliance Capital Asset Management Limited is a privately owned investment manager The firm manages equity and fixed income mutual funds for its clients It also manages exchange traded funds for its clients The firm invests in the public equity markets It is a subsidiary of Reliance Capital Ltd Reliance Capital Asset Management Limited was founded in 1995 and is based in Ahmedabad, India Amara Raja Batteries Ltd CMP: Rs 666 Sector: auto ancillaries Company Overview: Market cap (Rs crore) 11,345 Cr 52-week high/low (Rs.) 807.50 / 572.60 Amara Raja Batteries Limited (ARBL) is engaged in manufacturing of industrial and automotive batteries The company has been supplier to big companies like Ashok Leyland, Fiat, General Motors, Hindustan Motors, Honda, Hyundai, Mahindra & Mahindra, Maruti and Tata Motors, Daimler Chrysler and Ford P/E Ratio 22.18 ROCE 23.00 % Sales Growth 13.73 % Dividend Yield 1.07 % SOURCE: JHAVERI SECURITIES LTD Reliance Industries Ltd CMP: Rs 1390 Company Overview: Sector: Refineries Market cap (Rs crore) 869,953 Cr 52-week high/low (Rs.) 1417.50 / 1016.40 P/E Ratio 21.62 ROCE 11.69 % Sales Growth 27.60 % Dividend Yield 0.47 % SOURCE: JHAVERI SECURITIES LTD Reliance Industries Ltd is India`s largest private sector enterprise, with businesses in the energy and materials value chain The company works under different business segments: Exploration and Production, Petroleum Refining and Marketing, Petrochemicals, Textiles and Retail Products and brands offered by the company includes: Crude oil and natural gas, LPG, Propylene, Naphtha, Gasoline, Jet/Aviation Turbine Fuel, Superior Kerosene Oil, High Speed Diesel, Sulphur, Petroleum Coke, Polypropylene, High Density Polyethylene, Low Density Polyethylene, Linear Low Density Polyethylene, Polyvinyl Chloride, Poly Olefin, Suitings, Shirtings, Readymade Garments, Furnishing fabrics, Day curtains, Automotive upholstery, Suiting's, Ready-tostitch, Take away fabric, Fleet management services, Highway hospitality services, Vehicle care services, Linear Alkyl Benzene, Paraxylene, Purified Terephthalic Acid, Mono Ethylene Glycol, Staple Fiber, Filament Yarn, Texturised yarn, Twisted yarn, Moisture management yarn, Quality certified sleep products & Polyethylene terephthalate Disclaimer: Jhaveri Securities Limited (“JSL” or “Research Entity”) is regulated by the Securities and Exchange Board of India (“SEBI”) and is licensed to carry on the business of broking, depository services and related activities The business of JSL and its Associates (list available on www.jhaveritrade.com and www.jetrade.in ) are organized around five broad business groups –Commodities, Financial Markets, General Insurance and Life Insurance This Report has been prepared by Jhaveri Securities Limited in the capacity of a Research Analyst having SEBI Registration No INH000003291 and distributed as per SEBI (Research Analysts) Regulations 2014 This report does 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conflict of interest with respect to any recommendation and related information and opinions at the time of publication of research report or at the time of public appearance JSL may have proprietary long/short position in the above mentioned scrip(s) and therefore should be considered as interested The views provided herein are general in nature and not consider risk appetite or investment objective of any particular investor; readers are requested to take independent professional advice before investing This should not be construed as invitation or solicitation to business with JSL Compliance Officer: Mr Shailesh Singhal; Tel: 0265 - 6161200; email id: compliance@jhaveritrade.com; For any queries or grievances kindly email igc@jhaveritrade.com Registered Office: JHAVERI SECURITIES LTD 301/302 Payal Tower-II, Sayajigunj, Vadodara 390005 Tel No.91-265- 6161200 SEBIRegn Nos.: BSE/ NSE/ MCX - Commodity: INZ000199232, Mutual Fund: ARN 3524 Disclaimer: Client should read the Risk Disclosure Document issued by SEBI & relevant exchanges and the T&C on www.jhaveritrade.com; Investment in securities market are subject to market risks, read all the related documents carefully before investing  ... Singhal; Tel: 0265 - 6161200; email id: compliance@jhaveritrade.com; For any queries or grievances kindly email igc@jhaveritrade.com Registered Office: JHAVERI SECURITIES LTD 301/302 Payal Tower-II,... www.jhaveritrade.com and www.jetrade.in ) are organized around five broad business groups –Commodities, Financial Markets, General Insurance and Life Insurance This Report has been prepared by Jhaveri. .. 1607.00 / 1182.50 P/E Ratio 22.19 ROCE 13.46 % Sales Growth 11.72 % Dividend Yield 1.26 % SOURCE: JHAVERI SECURITIES LTD Larsen & Toubro Limited (L&T) is a technology, engineering, construction