Free Share Market Tips Today: Stop & Read Before You Invest In Stocks

Free Share Market Tips Today: Stop & Read Before You Invest In Stocks

Share-market-tips

Various popular stock market news portals and TV channels discuss trending stocks and provide free share market tips based on technical charts and often without in-depth research. Our research desk analyses these trending stock market tips and provides their 360-degree analysis in a single place so you can avoid making wrong decisions with your hard earned money.
Disclaimer: Stocks and opinions below are for informational purposes and shouldn't be taken as a final advice from Niveza India. You shouldn't rely on this free advice solely and do your own research to arrive at the final conclusions. Our final stock recommendations are sent via SMS and Email to paid subscribers of Our Premium Products.

Share Market Tips For September 2018: 4th Week

Intrasoft Technologies (NSE: ISFT) (Share Price: Rs.191): Avoid (10 Steps To Pick The Best Stocks)

Valuation: Overvalued ,trailing PE of 27x which seems to be higher as compared to its close peers.

Reasons to avoid: The company has reported negative sales growth in last two years. Its receivable has increased to 204 days in FY17 which is more than two quarters.

Drivers: The company's business model based on E-commerce retailing and it is majorly in USA. On account of this, higher receivables are eating out the current cash flow of the company.

Financial: On consolidated basis, net profit is stable at Rs 13.7 crores in FY18 vs FY17 but down as compare to FY16 . PAT margin compressed to 1.17% in FY18. ROE and ROCE stood at 10%/ 12% in FY18.

Zicom Electronic Security Systems Ltd(NSE: ZICOM) (Share Price: Rs.9.47): Avoid

Valuation: Poor valuation with negative earnings.

Reasons to avoid: The company has delivered poor growth of 8.06% in last five years. The company has delivered negative return ratios. Promoter's have stake has decreased. Promoter's have pledged more than 72.1% of their holdings. Promoter holding is 10.28%. Contingent liabilities of Rs. 724.14 Cr.

Financial: On YoY basis, company has delivered negative earnings since last couple of years. Splitting year in quarters, scenario is same as all quarters are in negative territory. Borrowings increased by more than double in last few years with low interest coverage rati

Larsen & Tourbro (NSE: LT) (Share Price: Rs.1334): Potential Buy

Valuation: The stock seems to be overvalued with trailing PE of 24.39x as compared to its close peers.

Reasons to consider: Diversified business with portfolio of projects, infrastructure development, manufacturing, IT & financial services. Order inflow grew by 7% in FY18. Uninterrupted payment of dividend with dividend payout of 48% in FY18. Also the improved ROE to 15.9% in FY18 also suggests the promising growth.

Drivers: Large diversified order book with book to bill ratio of ~ 3.5x gives revenue visibility for next three years. The company has signed an agreement with Schneider Electric for sale of its Electrical & Automation segment. Sale of E&A segment is capable of generating cash flow of ~Rs 100 bn in FY20.

Financial: In FY18, revenue is up by 9.5% to Rs 1,19,700 crores driven by infra, hydrocarbon and services businesses. EBITDA grew by 22% to Rs 13,600 crores. PAT up by 22% to Rs 7400 crores. EPS stood at Rs 52.62 / per share.

Reliance Home Finance (NSE: RHFL) (Share Price: Rs.65.20): Potential Buy

Valuation: Fairly valued with trailing PE of 16.75x as compared to close peers.

Reasons to consider: Reliance Home Finance's loan book recorded robust growth of 33 percent YoY and stood at Rs 16,380 crore. Asset quality remained intact, with the reported GNPA at (same levels as FY17) 0.8%. Provision coverage ratio stood at 47 percent up from 26 percent in FY17.

Drivers: Affordable housing segment driving loan book growth of the company. Also, focus on small ticket lending, and strict policy measures keep NPA under control. The company expects to maintain cost/income ratio in the current levels.

Financial: AUM increased to Rs. 16380 crores (+47%) as on FY18. In FY18 disbursements grew by 19% YoY to Rs 8,700 crore. Gross NPAs remained stable at 0.8%; NIMs improved to 3.9% in FY18 vs 3.4% in FY17. Return on Equity is at 15.1%.

RCON International Ltd (IPO) : Potential IPO

About Company: Incorporated in 1976, IRCON International Limited (IRCON) is four decade old government company (under the ministry of railways). It is engaged in the business of engineering and construction mainly specialising in major projects including railways, highways, bridges, flyovers, tunnels, aircraft maintenance hangers, runways, EHV substations, electrical and mechanical works, commercial and residential properties, development of industrial areas and other infrastructure activities. IRCON provides EPC services on a fixed-sum turnkey basis as well as on an item-rate basis for various infrastructure projects. Presently it has 26 project offices and five regional offices to support and manage its business operations throughout India and five overseas project offices in Sri Lanka, Bangladesh, Malaysia, South Africa and Algeria to provide onsite support overseas

Object of the Issue: The object of the offer is to carry out the disinvestment of upto 99,05,157 equity shares by the promoter; and to achieve benefits of listing the equity shares on the Stock Exchanges. The public issue comprises an offer for sale of 99,05,157 equity shares by its promoter, The President of India, acting through the Ministry of Railways, Government of India. Company will not receive any proceeds from the offer and all proceeds will go to the selling shareholder.

Issue Date: Sept 17, 2018- Sept 19, 2018

Price Band: Rs 470-475 per share

Issue Size: Rs 462- 467 crore

Market Lot: 30

Valuation: On valuation front post-IPO IRCON is expecting PE of 11.28x on higher price band at FY18 EPS

Reasons to consider: Company has a strong credit profile that includes non-fund based standby bank limits of Rs 3,120 crore out of which Rs 1,664.77 crore has been utilised. As of March 2018, the financial profile of company is characterised by healthy profitability margins and a comfortable liquidity position. Healthy orderbook of Rs 22,406.79 crore with book to bill ratio of ~5x gives healthy revenue visibility.

Financial: On a consolidated basis, over FY16-18, IRCON posted revenue and PAT CAGR of 27% and 2%, respectively. Average EBITDA margins stood at 10.8% and ROE at 10.3%.

Share Market Tips For September 2018: 3rd Week

Varroc Engineering Limited (NSE: VARROC) (Share Price: Rs.1017): Potential Buy

Valuation: Undervalued TTM PE 30.54x as compared to close peers.

Reasons to consider: The company is position among Indias top auto component groups, with a 4% share of global automobile lighting systems and top PV (passenger vehicle) makers as customers. The company also has a 6% share of the premium PV lighting market, which is growing fast. Operating margin and return ratios are lower than peers.

Drivers: As per management forecast that the company is increasing presence in the premium LED lighting segment which will lift realizations and margins. A low-cost manufacturing base and focus on driving up margins, lift the growth prospectus of the company. Presence in domestic and international market, strong relationship with clients, expansion plans in process would aid topline.

Financial: Revenue grew from Rs 6951 cr in FY15 to Rs 10378 cr in FY18. PAT rose up to Rs 451 cr in FY18 from Rs 17 cr in FY15. EPS increased to Rs 33.4 per share in FY18 from Rs 1.35 per share in FY15.

Sasken Technology (NSE: SASKEN) (Share Price: Rs. 1039): Potential Buy

Valuation: Undervalued with trailing PE of 18.64x.

Reasons to Consider: One of the company in automation technology. Improvement in margin and revenue since last three years. Company is Debt free with Healthy FII & MF holdings. Revenue share of India-29%, NA-39%,Europe-25% and rest is from others. No client accounts for more than 10% of revenue.

Drivers: Margin improvement shows operational efficiency which enhances the profitability of the company. It is one of the company in automation technology places it at sweet spot. Dollar appreciation would bode well for the company in the near term.

Financial: Company is debt free with healthy dividend payout ratio of 20%. In FY18, revenue rose to Rs 503 crores. EBITDA margin improved to 21%. EPS stod at Rs 48.17/ share.

Dixon Technologies Ltd (NSE: DIXON) (Share Price: Rs.2744): Potential Buy

Valuation: Overvalued with trailing PE of 50.41x.

Reasons to consider: Continues growth with CAGR of ~30% in last five years over healthy order book. The company shifting production from Dehradun to Tirupati which has increased its cost and compressed margin but shifting will get complete by July, and this will reduce expenses through better efficiencies. The company maintains ROCE above 25% in last three years.

Drivers: The company has forayed into security systems and manufactures CCTV's and video recorder which sees strong demand. Owing to which it has increased planning to enhance its camera manufacturing capacity to 400,000 units from 100,000 units at present. Companys lighting products, home appliances and mobile phone segment sees double digit growth led by low electronic penetration and pick up in domestic consumption.

Financial: In FY18, revenue grew by 14.3% to Rs 2858 crores. EBITDA up by 26.1% to Rs 117 crores. PAT up by 28% to Rs 60.9 crores

Share Market Tips For September 2018: 2nd Week

Uflex (NSE: UFLEX) (Share Price: Rs.305): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Undervalued with TTM PE of 7.09x.

Reasons to Consider: The company posted healthy numbers in FY18 and Q1FY19 as well. High margin Aseptic's margins would benefit company at margin front.

Drivers: Uflexs Aseptic revenues are expected to start from H2FY19. Uflex will be the second player in the segment in India after Tetra Pack. The company expects to garner market share of 23-24%. Capex, continuous innovation and product portfolio expansion poised well for growth.

Financial: For year FY12, the company posted revenues of Rs 4515 crores and since then it has given steady growth and have managed to reach revenue size Rs 6697 crores in FY18 . The EBITDA of the company in FY12 was Rs 636 crores which has increased to Rs 902 crores in FY18. The net profit has grown from Rs 252 crores in FY12 to Rs 312 crores in FY18.

Rites (NSE: RITES) (Share Price: Rs.262): Potential Buy

Valuation: The company is undervalued with TTM PE of 14.97x

Reasons to consider: RITES intend to increase scale of operations in railway infrastructure sector by taking up turnkey projects and expansion of services for metro and airport projects too. Further, it also plans to increase share of business in renewable energy generation and power procurement for Indian Railways, manufacturing of wagons and joining upcoming opportunities like station development. This could meaningfully improve its order book and thereby lead to incrased revenues.

Drivers: Right now company is having healthy orderbook of Rs 48 bn which provides three years of revenue visibility. Strong financials and expanding international foothold bodes well for the company in the longer run.

Financials: Revenue from operations has increased at a CAGR of 12% from Rs 10,12.68 cr in the FY15 to Rs 1663 cr in the FY18, and its PAT has increased from Rs 3,12.21 cr in FY15 to Rs 3,65 cr in the FY18.

RBL Bank (NSE: RBLBNK) (Share Price: Rs.588) : Potential Buy

Valuation: Overvalued with TTM PE and PB of 36.78x and 3.66x respectively.

Reasons to Consider: It is one of the fastest growing private banks with the Aggressive management.. NIM expanded to 3.04% in FY18 from 2.56% in FY17. ROA also improved to 1.16% in FY18.

Drivers: Bank is expected to see healthy profitability due to improving advances & loan mix, higher CASA, lower cost ratios and improving asset quality.

Financial: In FY18, the bank reported interest earned to Rs 4561 crores over Rs 3713 crores in FY17. Provisions and contingencies stood at Rs 367 crores vs Rs 239 crores in FY17. PAT grew to Rs 639 crores vs Rs 446 crores. CASA improved to 24.32% while ROE at 11.61%.

JM Financial (NSE: JMFINANCIAL) (Share Price: Rs.117): Potential Buy

Valuation: Undervalued stock with trailing PE of 15.87x as compared to close peers.

Reasons to consider: The company registered 37% growth in revenue in FY18 and 25% growth in net profit. Also, it forayed into SME lending which has shown good performance. Strong profitability, adequate capitalization and comfortable asset quality shows financial strength of the company.

Drivers:The company having diversified financial service profile with strong brand image. Ramp up in fund based lending business in past three years augur well for company's growth.

Financial:In Q4FY18, revenue of the company increased to Rs.80 cr in Q4FY18 (vs Rs 11.4 cr in Q3FY18). Net profit increased to Rs 49 cr in Q4FY18. EPS rose to Rs.0.61/share.

Sanco Trans Ltd (BSE: 523116) (Share Price: Rs.225): Avoid

Valuation: Overvalued with trailing PE of 450.28x.

Reasons to avoid: The market cap of the company is very low. On a consolidated basis, the company has posted negative earnings since last two years. Lack of operational efficiency hitting company's earnings.

Drivers: Shipping and logistics industry is pacing up which can reflect in peers' financials. Company still posted poor earnings. The company delivered flat growth of 1.3% since last five years.

Financials:Net sales stood at Rs.82 crores in FY17 vs Rs.76 crores in FY13. EBITDA stood at Rs.9.6 crores in FY17 vs Rs.15 crores in FY13. EPS stood at Rs.1.81 per share in FY17 vs Rs.35.37 per share in FY13.

Share Market Tips For August 2018

Share Market Tips For August 2018: 5th Week

Escorts (NSE: ESCORTS) (Share Price: Rs.869): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Overvalued stock with trailing PE of 27.71x.

Reasons to consider: The company expanded margin by 330 bps to 11.2% in FY18 driven by higher sales, price hike, and cost control indicatives. Escorts achieved tractor volume growth of 26% in FY18 which is more than industry growth rate of 24%.

Drivers: New product launch and gain in market share fuels companys growth. Government initiatives towards increasing farm productivity via more state subsidiary for doubling the agricultural growth and normal monsoon is expected to drive demand for tractors and also reflected in Escorts growth.

Financial: The company has grown at CAGR of 5% in last five years. ROCE of the company improved to 21% in FY18 from 12% in FY14. ROE of the company also improved to 14% in FY18 from 9% in FY14. The company management is expected to improve ROCE to 25-30% by FY22. Also, aims to expand EBITDA margin to 13-14% by FY22.

Jet Airways (NSE: JETAIRWAYS) (Share Price: Rs.281): Avoid

Valuation: Negative earnings impacted valuation.

Reasons to avoid: The company has left with no extra cash to run operation not more than 60 days. Employees have been laid off, provision to cut salary by 25%, higher fuel price, rising market share of competitor like indigo, etc factors are not in favor of company.

Financial: In FY18, revenue grew to Rs 23,286 crores but operating profit tanked to Rs 23 crores and posted negative earnings.

Dredging Corporation India Ltd (NSE: DREDGECORP) (Share Price: Rs.471): Avoid

Valuation: Overvalued stock with PE of 78.86x.

Reasons to avoid: Interest coverage ratio of the company is low. Earning per share is about to touch zero levels. The company has delivered poor growth of 3.87% over last five years. The company has a low return on equity of 2.26% for last three years.

Financial: Numbers are falling down continuously since FY15. Revenue growth was down in FY17 while slight up in FY18 but overall flat. Numbers are falling like a house of cards. Profit margins are hammered last couple of years. Operational efficiency of the company is under surveillance.

Astra Microwave Products (NSE: ASTRAMICRO) (Share Price: Rs.97): Potential Buy

Valuation: Undervalued stock as compared to close peers with trailing PE of 13.8x.

Reasons to consider: Astra-microwave products Ltd (AMPL) is leading designer and manufacturer of wide array of radio frequency systems, microwave chips, microwave based components and subsystems for Defence, Telecom and Space. The company posted healthy numbers in FY18.


Drivers: Healthy order book of Rs 503 cr whereas order intake guidance was given of Rs 600 cr for FY19E. Company to benefit from improvement in demand for radars and subsystems due to ongoing indigenous missiles programmes. Meanwhile, companys focus in new projects will drive future growth.

Financials: In FY18 PAT grew by 7% YoY to Rs 61 cr. EBITDA margins improved by 510bps due to execution of higher margin domestic orders

Jain Irrigation Systems (NSE: JISLJALEQS) (Share Price: Rs.85): Potential Buy

Valuation: Undervalued with trailing PE of 17.13x.

Reasons to consider: Revenue grew by 24.4% YoY led by agro processing business followed by Hi- tech and plastic business.

Drivers: Improvement in the overall growth from agro segment largely led by spices, newly acquired Innova foods along with introduction of fruit pulps in the retail segment could improve overall outlook for the company. Increasing MIS order book for project business also provides strong revenue visibility for hi-tech segment.

Financial: In FY18, the company posted revenue of Rs 7947 cr. The company reported EBITDA of Rs 1055.4 crore. ROE and ROCE is 4.9%/ 10.1% repectively. EPS is Rs 4.3 per share.

Share Market Tips For August 2018: 4th Week

Ashok Leyland (NSE: ASHOKLEY) (Share Price: Rs.130): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Fairly valued with trailing PE of 20.96x as compared to close peers.

Reasons to consider: The company posted healthy numbers in FY18. The management expects to continue its strong growth over FY19, on the back of domestic infra-led M&HCV demand, hub & spoke model doing well and international markets performing well. Overloading restrictions seem to have eased only in UP and Rajasthan, where Ashok Leyland has relatively lower presence. Hence, overloading ease can have only ~1-2% impact on the company.

Drivers: Scrappage policy expected to come in by Apr-20 will be a major growth driver for the CV industry. Increased government focus on infrastructure spend, pre-buying ahead of BS VI implementation, scrappage policy, shift towards hub and spoke model and pickup in mining activities would led the growth momentum to continue for the M&HCV segment. Order from defense sector fuels topline of the company.

Financial: Net revenue increased by 30% to Rs 26,170.3 cr in FY18. EBITDA rose by 23.4% to Rs 2711.2 cr in FY18. PAT is up by 25.5% to Rs 1534.8 cr in FY18.

Kalpataru Power Transmission Ltd (NSE: KALPATPOWR) (Share Price: Rs.373): Potential Buy

Valuation: Slightly overvalued as compared to close peers with trailing PE of 26.83x.

Reasons to Consider: The company posted healthy numbers in last five years. Revenue grew at an approximate 10% CAGR in last five years. The company has a strong order book of Rs.12,404 crore in FY18. Significant improvement in utilization levels average utilization over 80% for FY18.

Financial: Revenue grew by 18% in FY18 to Rs.2,756 crore. EBITDA margin expanded to 11.5% by 300 bps. PAT is up by 110% to Rs.34 crore.

Pincon Spirit (NSE: PINCON) (Share Price:Rs. 7.95): Avoid

Valuation: Undervalued stock with TTM PE of 0.81x.

Reasons to avoid: The company came in the list of shell companies. Owing to which, it is undergoing forensic audit as of now for misuse of funds.

Financial: Companys latest financial are not available.

Anant Raj (NSE: ANANTRAJ) (Share Price: Rs. 44): Avoid

Valuation: Undervalued stock with TTM PE of 19x.

Reasons to avoid: The company posted flat growth in last five years. Also, higher cost puts pressure on margins. Margins are under pressure as of now excluding other income. ROE is low around 1.4% since last three years.

Financials: The company reported revenue of Rs 480 crores in FY18. Operating margin compressed to 22.9% from 30.2% in FY17. Net profit stood at Rs 67 crores.

Suzlon Energy (BSE: SUZLON) (Share Price: Rs.7.17): Avoid

Valuation: Expensive stock.

Reasons to avoid: Promoter's have pledged more than 99% of their holdings and holding is low: 19.79%. Promoter's stake has decreased. Debt is increasing continuously.

Financials: In Q1FY19, the company reported revenue of Rs 1277 crores vs Rs 2174 crores in Q4FY18. Operating margin turn out negative owing to high cost. The company posted negative net profit since last three quarters.

Share Market Tips For August 2018: 3rd Week

Amara Raja Batteries (NSE: AMARAJABAT) (Share Price: Rs.858): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Overvalued with trailing PE of 30.37x.

Reasons to consider: Revenue grown at five year CAGR of 17.6%. Company posted healthy numbers in FY18. The company have ROCE of 30% and ROE of 20%. Excellent track record and robust capex plan led to preferred supplier to majority of OEM's.

Drivers: Strong automotive growth drives growth of the company. Capacity expansion by major OEM's and favourable macro opportunities creates good platform for the company.

Financial: In FY18, the company recorded sales of Rs 6059 cr vs Rs 5317 cr in FY17. Operating profit stood at Rs 883 cr vs Rs 849 cr in FY17. The company recorded PAT of Rs 471 cr in FY

Varroc Engineering Limited (NSE: VARROC) (Share Price: Rs.977): Potential Buy

Valuation: Undervalued TTM PE 29.02x as compared to close peers.

Reasons to consider: The company is position among Indias top auto component groups, with a 4% share of global automobile lighting systems and top PV (passenger vehicle) makers as customers. The company also has a 6% share of the premium PV lighting market, which is growing fast. Operating margin and return ratios are lower than peers.

Drivers: As per management forecast that the company is increasing presence in the premium LED lighting segment which will lift realizations and margins. A low-cost manufacturing base and focus on driving up margins, lift the growth prospectus of the company. Presence in domestic and international market, strong relationship with clients, expansion plans in process would aid topline.

Financial: Revenue grew from Rs 6951 cr in FY15 to Rs 10378 cr in FY18. PAT rose up to Rs 451 cr in FY18 from Rs 17 cr in FY15. EPS increased to Rs 33.4 per share in FY18 from Rs 1.35 per share in FY15.

Lycos Internet Ltd (NSE: LYCOS) (Share Price: Rs. 4.45): Avoid

Valuation: The company has lower valuation as compared to peers.

Reasons to avoid: Promoter's stake has decreased. As far as pledging is concerned, promoter's have pledged 56.57% of their holdings. Company has contingent liabilities of Rs. 61.30 Cr.

Financial: In Q1FY19, expenses margin rose more as compared to sales margin. Company has posted negative earnings since last three years.

Rites (NSE: RITES) (Share Price: Rs.318): Potential Buy

Valuation: The company is undervalued with TTM PE of 17.97x

Reasons to consider: RITES intends to increase scale of operations in railway infrastructure sector by taking up turnkey projects and expansion of services for metro and airport projects. Further, it also plans to increase share of business in renewable energy generation and power procurement for Indian Railways, manufacturing of wagons and joining upcoming opportunities like station development. This could meaningfully improve its order book and thereby the revenues.

Drivers: Right now company is having healthy orderbook of Rs 48 bn which provides three years of revenue visibility. Expanding international foothold and strong financials plays well for the company.

Financials: Revenue from operations has increased at a CAGR of 15.60% from Rs 10,12.68 cr in the FY15 to Rs 1353.35 cr in the FY17, and its PAT has increased at a CAGR of 7.63% from Rs 3,12.21 cr in FY15 to Rs 3,61.66 cr in the FY17.

Share Market Tips For August 2018: 2nd Week

Dixon Technologies Ltd (NSE: DIXON) (Share Price: Rs.2535): Potential Buy

Valuation: Overvalued with trailing PE of 47.23x.

Reasons to consider: Continues growth with CAGR of ~30% in last five years over healthy order book. The company shifting production from Dehradun to Tirupati which has increased its cost and compressed margin but shifting will get complete by July, and this will reduce expenses through better efficiencies. The company maintains ROCE above 25% in last three years.

Drivers: The company has forayed into security systems and manufactures CCTV's and video recorder which sees strong demand. Owing to which it has increased planning to enhance its camera manufacturing capacity to 400,000 units from 100,000 units at present. Companys lighting products, home appliances and mobile phone segment sees double digit growth led by low electronic penetration and pick up in domestic consumption.

Financial: In FY18, revenue grew by 14.3% to Rs 2858 crores. EBITDA up by 26.1% to Rs 117 crores. PAT up by 28% to Rs 60.9 crores

IG Petrochemical (NSE: IGPL) (Share Price: Rs.505): Avoid

Valuation: Undervalued with trailing PE of 10.68x.

Reasons to avoid: IG Petrochemical is one of the dominant players in Phthalic Anhydride (PA). Anti-dumping duty on PA, which was in force from December 2012 to December 2017, is under review as of now. In the interim, this duty safeguard has been extended till December 24, 2018. But the Directorate General of Trade Remedies has started the sunset review investigation concerning imports of PA originating in or exported from Asian countries like Korea, Taiwan and Israel. In recent, import from Asian countries have increased at CAGR of 30% over FY15-18; which can impact companys business in long run.

Financial: In FY18, the company recorded total income of Rs 1541.5 crores vs Rs 1234 crores in FY17. EBITDA stood at Rs 279.2 crores. The company recorded PAT of Rs 147.4 crores and EPS of Rs 35.53/ share.

Nocil (NSE: NOCIL) (Share Price: Rs.180): Potential Buy

Valuation: Undervalued stock with TTM PE of 16.59x.

Reasons to consider: The company reported heathy numbers in Q1FY18. Its a cash rich and debt free company. The company has ROE and ROCE of 16.3%/ 24.5% respectively. 1. Capex- Rs 170 cr. The company has completed phase I of New Mumbai capex is commissioned and operational. Expansion at Dahej is ex[ected to commission by Q3FY19. Considering high demand, the company has announced capex plan of Rs 255 crores in phase II; which is expected to commission by H1FY20.

Drivers: The company is in business of rubber chemicals which has application in tyre and rubber product industry. Tyre industry is growing led by growth in auto industry and imposition of anti-dumping duty on radial Tyres.

Financial: In Q1FY19, revenue grew by 24.7% YoY to Rs 268 crores. EBITDA margin expanded by 449 bps YoY to 29.9%. Net profit grew by 46.7% YoY to Rs 51 crores. EPS stood at Rs 3.08/ share.

Zicom Electronic Security Systems Ltd (NSE: ZICOM) (Share Price: Rs.12.65): Avoid

Valuation: Poor valuation with negative earnings.

Reasons to avoid: The company has delivered poor growth of 8.06% in last five years. The company has delivered negative return ratios. Promoter's have stake has decreased. Promoter's have pledged more than 72.1% of their holdings. Promoter holding is 10.28%. Contingent liabilities of Rs. 724.14 Cr.

Financials: On YoY basis, company has delivered negative earnings since last couple of years. Splitting year in quarters, scenario is same as all quarters are in negative territory. Borrowings increased by more than double in last few years with low interest coverage ratio.

Mahanagar Gas (NSE: MGL) (Share Price: Rs.967): Potential Buy

Valuation: Undervalued stock as compared to close peers with TTM PE of 19.83x.

Reasons to Consider: 5 new CNG stations have become operational in Raigad. The company has put 3 bids in the 9 th round of gas bidding and management is quite confident of winning the 3 bids in the coming quarters. Healthy ROE of 24%.

Drivers: Drop in price of R-LNG by 20% aid margins. Expected rise in volume of CNG and PNG fuels company's growth.

Financial: In Q1FY19, revenue grew by 16.7% YoY to Rs 619.3 crores. EBITDA up by 4% YoY to Rs 210.9 crores. EPS up by 2.9% to Rs 13.1/share.

Share Market Tips For August 2018: 1st Week

Escorts (NSE: ESCORTS) (Share Price: Rs.908): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Overvalued stock with trailing PE of 27.71x.

Reasons to consider: The company expanded margin by 330 bps to 11.2% in FY18 driven by higher sales, price hike, and cost control indicatives. Escorts achieved tractor volume growth of 26% in FY18 which is more than industry growth rate of 24%.

Drivers: New product launch and gain in market share fuels companys growth. Government initiatives towards increasing farm productivity via more state subsidiary for doubling the agricultural growth and normal monsoon is expected to drive demand for tractors and also reflected in Escorts growth.

Financial: The company has grown at CAGR of 5% in last five years. ROCE of the company improved to 21% in FY18 from 12% in FY14. ROE of the company also improved to 14% in FY18 from 9% in FY14. The company management is expected to improve ROCE to 25-30% by FY22. Also, aims to expand EBITDA margin to 13-14% by FY22.

Indiabulls Housing Finance (NSE: IBUHSGFIN) (Share Price: 1365): Potential Buy

Valuation: Undervalued stock with trailing PE of 14.29x.

Reasons to consider: The company posted robust numbers in Q1FY19. Also, maintains track record of posting healthy numbers. Management targets to gradually increase the share of securitization in its loan book from 10 percent currently to 20 percent over medium to long term; which fuels its growth. Company has also planned to mitigate pressure with a hike in lending rates and higher growth in commercial lending.

Drivers: Healthy growth in AUMs and QoQ expansion in spreads. Healthy growth would drive compounding-led returns.

Financial: In Q1FY19, the company has reported a rise of 30% YoY in consolidated net profit at Rs 1,048.68 crore. Net interest income (NII) was up by 22.1% at Rs 1,690 crore, from Rs 1,400 crore in the year-ago quarter.

Jet Airways (NSE: JETAIRWAYS) (Share Price: Rs.303): Avoid

Valuation: Negative earnings impacted valuation.

Reasons to avoid: The company has left with no extra cash to run operation not more than 60 days. Employees have been laid off, provision to cut salary by 25%, higher fuel price, rising market share of competitor like indigo, etc factors are not in favor of company.

Financial: In FY18, revenue grew to Rs 23,286 crores but operating profit tanked to Rs 23 crores and posted negative earnings.

Nocil (NSE: NOCIL) (Share Price: Rs.173): Potential Buy

Valuation: Undervalued stock with TTM PE of 15.57x.

Reasons to consider: The company reported heathy numbers in Q1FY18. Its a cash rich and debt free company. The company has ROE and ROCE of 16.3%/ 24.5% respectively. 1. Capex- Rs 170 cr. The company has completed phase I of New Mumbai capex is commissioned and operational. Expansion at Dahej is ex[ected to commission by Q3FY19. Considering high demand, the company has announced capex plan of Rs 255 crores in phase II; which is expected to commission by H1FY20.

Drivers: The company is in business of rubber chemicals which has application in tyre and rubber product industry. Tyre industry is growing led by growth in auto industry and imposition of anti-dumping duty on radial Tyres.

Financial: In Q1FY19, revenue grew by 24.7% YoY to Rs 268 crores. EBITDA margin expanded by 449 bps YoY to 29.9%. Net profit grew by 46.7% YoY to Rs 51 crores. EPS stood at Rs 3.08/ share.

Ashok Leyland (NSE: ASHOKLEY) (Share Price: Rs.113): Potential Buy

Valuation: Fairly valued with trailing PE of 18.18x as compared to close peers.

Reasons to consider: The company posted healthy numbers in FY18. The management expects to continue its strong growth over FY19, on the back of domestic infra-led M&HCV demand, hub & spoke model doing well and international markets performing well. Overloading restrictions seem to have eased only in UP and Rajasthan, where Ashok Leyland has relatively lower presence. Hence, overloading ease can have only ~1-2% impact on the company.

Drivers: Scrappage policy expected to come in by Apr-20 will be a major growth driver for the CV industry. Increased government focus on infrastructure spend, pre-buying ahead of BS VI implementation, scrappage policy, shift towards hub and spoke model and pickup in mining activities would led the growth momentum to continue for the M&HCV segment. Order from defense sector fuels topline of the company.

Financial: Net revenue increased by 30% to Rs 26,170.3 cr in FY18. EBITDA rose by 23.4% to Rs 2711.2 cr in FY18. PAT is up by 25.5% to Rs 1534.8 cr in FY18.

Financial: In FY18, revenue grew to Rs 23,286 crores but operating profit tanked to Rs 23 crores and posted negative earnings.

Share Market Tips For July 2018

Share Market Tips For July 2018: 4th Week

Parsvnath Developers Ltd (NSE: PARSVNATH) (Share Price: Rs.11.75): Avoid

Valuation: Company is posting losses since last three years. There's no sign of recovery yet.

Reasons to avoid: The company's promoters have pledged 89.5% of their holdings. The company is sitting on high debt with a debt to equity ratio of 1.58x. The company has delivered poor growth of -20.98% over past five years and its return on equity of 2.18% over the last three years to have been very low. The company has contingent liabilities of Rs.255.48 crore.

Financial: The company posted net sales of Rs.108 crore in FY18 vs Rs.249 crore in FY17 while PAT is at a loss of Rs.117 crore in FY18 vs (Rs.34) crore in FY17.

Kalpataru Power Transmission Ltd (NSE: KALPATPOWR) (Share Price: Rs.365): Potential Buy

Valuation: Slightly overvalued as compared to close peers with trailing PE of 19.66x.

Reasons to consider: The company posted healthy numbers in last five years. Revenue grew at an approximate 10% CAGR in last five years. The company has a strong order book of Rs.12,404 crore in FY18. Significant improvement in utilization levels average utilization over 80% for FY18.

Drivers: Government thrust for electrification would boost company's growth. Healthy order inflow gives a long-term revenue visibility.

Financial: Revenue grew by 18% in FY18 to Rs.2,756 crore. EBITDA margin expanded to 11.5% by 300 bps. PAT is up by 110% to Rs.34 crore.

Dredging Corporation India Ltd (NSE: DREDGECORP) (Share Price: Rs.479): Avoid

Valuation: Overvalued stock with PE of 78.86x.

Reasons to avoid: Interest coverage ratio of the company is low. Earning per share is about to touch zero levels. The company has delivered poor growth of 3.87% over last five years. The company has a low return on equity of 2.26% for last three years.

Financials: Numbers are falling down continuously since FY15. Revenue growth was down in FY17 while slight up in FY18 but overall flat. Numbers are falling like a house of cards. Profit margins are hammered last couple of years. Operational efficiency of the company is under surveillance.

Bata India (NSE: BATAINDIA) (Share Price: Rs.897): Avoid

Valuation: Overvalued as compared to close peers with trailing PE of 47.07x

Reasons to avoid: Revenue growth will be lower than peers due to increased competition. Currently stock will is trading at all time high levels.

Drivers: New brand Hush Puppies" are loosing market share on account of unavailability of stock due to poor inventory management at store level. In such case other organized players might gain market share than Bata India.

Financials: In Q4FY18, net sales down by 602% QoQ to Rs 632.3 cr. EBITDA margin compressed to 13% QoQ from 16.5% in Q3FY18. PAT done by 23.6% QoQ to Rs 52.1 cr.

Astra Microwave Products (NSE: ASTRAMICRO) (Share Price: Rs.98.8): Potential Buy

Valuation: Undervalued stock as compared to close peers with trailing PE of 13.8x.

Reasons to consider: Astra-microwave products Ltd (AMPL) is leading designer and manufacturer of wide array of radio frequency systems, microwave chips, microwave based components and subsystems for Defence, Telecom and Space. The company posted healthy numbers in FY18.

Drivers: Healthy order book of Rs 503 cr whereas order intake guidance was given of Rs 600 cr for FY19E. Company to benefit from improvement in demand for radars and subsystems due to ongoing indigenous missiles programmes. Meanwhile, companys focus in new projects will drive future growth.

Financial: In FY18 PAT grew by 7% YoY to Rs 61 cr. EBITDA margins improved by 510bps due to execution of higher margin domestic orders.

Share Market Tips For July 2018: 3rd Week

Mahindra & Mahindra (NSE: M&M) (Share Price: Rs.908): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Undervalued stock with trailing PE of 15.07x.

Reasons to consider: Continuous volume growth at average growth rate of ~8-10%. Healthy ROE of around 19-20%. Cash rich company.

Drivers: The company's aim is to increase the revenue share of global FES to 50% from ~35% currently by focusing on small farmers, key agriculture markets such as USA, Mexico, Brazil and Turkey , tractors and other relayed products, & strategic alliances. Long-term demand outlook remains healthy on account of normal monsoon and government focus on infrastructure in rural India.

Financial: Revenue increased by Rs 47577 cr in FY18 vs Rs 41895 cr in FY17. EBITDA margin improved to 24.5% in FY18. Net profit stood at Rs 4623 cr in FY18 vs Rs 3890 cr in FY17.

Refex Industries (NSE: REFEX) (Share Price: Rs.13.5): Avoid

Valuation: Overvalued stock with PE multiple of 22.13x.

Reasons to Avoid: Promoter holding is low, I.i, 31.5% which is low as compared to closed industry peers. Promoter's stake has decreased. Promoters have pledged 27.69% of their holdings. The company has contingent liabilities of Rs.48 crore against earnings of 0.46 crore in FY18.

Financial: Numbers are uncertain for the company. Both quarter and annual numbers are way below expectations. Lack of operational efficiency is hammering the company down.

Dixon Technologies Ltd (NSE: DIXON) (Share Price: Rs. 2835): Potential Buy

Valuation: Overvalued with trailing PE of 53x.

Reasons to Consider: Contious growth with CAGR of ~30% in last five years over healthy order book. The company shifting production from Dehradun to Tirupati which has increased its cost and compressed margin but shifting will get complete by July, and this will reduce expenses through better efficiencies. The company maintains ROCE above 25% in last three years.

Drivers: The company has forayed into security systems and manufactures CCTV's and video recorder which sees strong demand. Owing to which it has increased planning to enhance its camera manufacturing capacity to 400,000 units from 100,000 units at present. Companys Lighting products, home appliances and mobile phone segment sees double digit growth led by low electronic penetration and pick up in domestic consumption.

Financial: In FY18, revenue grew by 14.3% to Rs 2858 crores. EBITDA up by 26.1% to Rs 117 crores. PAT up by 28% to Rs 60.9 crores.

IG Petrochemical (NSE: IGPL) (Share Price: Rs. 443): Avoid

Valuation: Undervalued with trailing PE of 9.64x.

Reasons to Avoid: IG Petrochemical is one of the dominant players in Phthalic Anhydride (PA). Anti-dumping duty on PA, which was in force from December 2012 to December 2017, is under review as of now. In the interim, this duty safeguard has been extended till December 24, 2018. But the Directorate General of Trade Remedies has started the sunset review investigation concerning imports of PA originating in or exported from Asian countries like Korea, Taiwan and Israel. In recent, import from Asian countries have increased at CAGR of 30% over FY15-18; which can impact companys business in long run.

Financial: In FY18, the company recorded total income of Rs 1541.5 crores vs Rs 1234 crores in FY17. EBITDA stood at Rs 279.2 crores. The company recorded PAT of Rs 147.4 crores and EPS of Rs 35.53/ share.

Sterlite Technologies (NSE: STRTECH) (Share Price: Rs.303): Potential Buy

Valuation: Overvalued with trailing PE of 36.49x as compared to close peers.

Reasons to Consider: The company has announced the signing of agreements for acquisition of a European specialised optical fibre cable manufacturer Metallurgica Bresciana (Metallurgica) in all cash deal for the total consideration of Rs 367 crore which is to be funded by the mix of internal accruals and European debt instruments.

Drivers: The acquisition will provide Sterlite an access to European market, which will eventually help to increase its global market share for optical fibre products and would help to bring in new tier 1 customer. The new OF capacity expansion would bring in additional revenue opportunity of ~Rs 1000 crores at the full capacity by FY20.

Financial: In FY18, operating income grew by 24% to Rs 3206 crores. EBITDA grew by 44.4% to Rs 749 crores. PAT up by 66% to Rs 334.3 crores. EPS stood at Rs 8.4 / share.

Share Market Tips For July 2018: 2nd Week

Larsen & Tourbro (NSE: LT) (Share Price: Rs.1293): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Overvalued with trailing PE of 24.72x as compared to close peers.

Reasons to consider: Diversified business with portfolio of projects, infrastructure development, manufacturing, IT & financial services. Order inflow grew by 7% in FY18. Uninterrupted payment of dividend with dividend payout of 48% in FY18. Improves ROE to 15.9% in FY18.

Drivers: Large diversified order book with book to bill ratio of ~ 3.5x gives revenue visibility for next three years. The company has signed an agreement with Schneider Electric for sale of its Electrical & Automation segment. Sale of E&A segment is capable of generating cash flow of ~Rs 100 bn in FY20.

Financial: In FY18, revenue is up by 9.5% to Rs 1,19,700 crores driven by infra, hydrocarbon and services businesses. EBITDA grew by 22% to Rs 13,600 crores. PAT up by 22% to Rs 7400 crores. EPS stood at Rs 52.62 / per share.

Zicom Electronic Security Systems Ltd (NSE: ZICOM) (Share Price: Rs.14.7): Avoid

Valuation: Poor valuation with negative earnings.

Reasons to avoid: The company has delivered poor growth of 8.06% in last five years. The company has delivered negative return ratios. Promoter's have stake has decreased. Promoter's have pledged more than 72.1% of their holdings. Promoter holding is 10.28%. Contingent liabilities of Rs. 724.14 Cr.

Financial: On YoY basis, company has delivered negative earnings since last couple of years. Splitting year in quarters, scenario is same as all quarters are in negative territory. Borrowings increased by more than double in last few years with low interest coverage ratio.

Uttam Value Steels Ltd (NSE: UVSL) (Share Price: Rs.0.15): Avoid

Valuation: Poor valuation with negative earnings.

Reasons to avoid: The company has delivered poor growth of -1.81% in last five years. The company has delivered negative return ratios. Promoter's have pledged more than 47% of their holdings. Lack of operational efficiency by the company dragged the company down.

Financial: On YoY basis, company has delivered negative earnings since FY14. Splitting year in quarters, scenario is same as all quarter are in negative territory.

Educomp Solutions (NSE: EDUCOMP) (Share Price: Rs.2.85): Avoid

Valuation: Poor valuation with unstable operational efficiency.

Reasons to avoid: Promoters have pledged more than 85% of their holdings. The company has a negative return on equity since last few years. Contingent liabilities are increasing on the Y-o-Y basis. Working capital management looking down as current ratio and quick ratio both are going up on account of high accounts receivable. The company is facing stiff competition in the industry as it is impacting margins.

Financials: Company is posting negative earnings since last few years. Revenues have come down drastically. Cash flows are negative as well.

Bata India(BSE: BATAINDIA) (Share Price: Rs.841): Avoid

Valuation: Overvalued as compared to close peers with trailing PE of 48.11x

Reasons to avoid: Revenue growth will be lower than peers due to increased competition. Currently stock will is trading at all time high levels.

Drivers: New brand Hush Puppies" are loosing market share on account of unavailability of stock due to poor inventory management at store level. In such case other organized players might gain market share than Bata India.

Financials: In Q4FY18, net sales down by 602% QoQ to Rs 632.3 cr. EBITDA margin compressed to 13% QoQ from 16.5% in Q3FY18. PAT done by 23.6% QoQ to Rs 52.1 cr.

Share Market Tips For July 2018: 1st Week

Amara Raja Batteries (NSE: AMARAJABAT) (Share Price: Rs.783): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Fairly valued with trailing PE of 28.49x.

Reasons to consider: Revenue grown at five year CAGR of 17.6%. Company posted healthy numbers in FY18. The company have ROCE of 30% and ROE of 20%. Excellent track record and robust capex plan led to preferred supplier to majority of OEM's.

Drivers: Strong automotive growth drives growth of the company. Capacity expansion by major OEM's and favorable macro opportunities creates good platform for the company.

Financial: In FY18, the company recorded sales of Rs 6059 cr vs Rs 5317 cr in FY17. Operating profit stood at Rs 883 cr vs Rs 849 cr in FY17. The company recorded PAT of Rs 471 cr in FY18.

Lycos Internet Ltd (NSE: LYCOS) (Share Price: Rs. 4.1): Avoid

Valuation: The company has lower valuation as compared to peers.

Reasons to avoid: Promoter's stake has decreased. As far as pledging is concerned, promoter's have pledged 35.92% of their holdings. Company has contingent liabilities of Rs. 61.30 Cr.

Financial: In Q1FY18, expenses margin rose more as compared to sales margin. Company still managed to post better earnings than earlier years.

A2Z Infra Engineering (NSE: A2ZINFRA) (Share Price: Rs.20.4): Avoid

Valuation: The company is overvalued with negative earnings.

Reasons to avoid: The company posted negative margins and final profit. Also, promoters of the company have pledged 96% of their shares.

Drivers: The board of the company approved the issuance of 8 crore equity shares to lenders as a one-time settlement. The company belongs to power sector which is growing slowly as of now. It impacted company's earnings.

Financial: In Q1FY18, net sales down by 34% QoQ to Rs.112 crores. EBITDA and PAT witnessed negative numbers.

Viceroy Hotels Ltd (NSE: VICEROY) (Share Price: Rs.7.00): Avoid

Valuation: Stock is overvalued with poor fundamentals.

Reasons to avoid: Promoters have pledged more than 60% of their holdings. Promoter holding is 24% only. The company has interest coverage ratio. The company has delivered poor growth of 2.43% over past five years.

Drivers: The hotel industry is looking much stable as the government is taking a lot of efforts in making the majority of places in India as tourist spots. The hotel industry is in a lower slab of GST. It will be driving factor for the industry.

Financials: Company posted negative earnings in FY17. Signs of recovery are bleak. Debt is increasing with low-interest coverage. Due to lack of operational efficiency, margins are getting hammered.

Escorts Ltd (NSE: ESCORTS) (Share Price: Rs.867): Potential Buy

Valuation: Overvalued with trailing PE of 30.98x.

Reasons to consider: The company is one of the prominent players in auto and tractor industry with market share of 10.4% in tractor segment and 55% market share in material handling equipment. The company has 53 dealers and 120 touch points. The company posted healthy numbers in FY18. EBITDA margin improved led by volume growth and cost control initiative.

Drivers: Increasing market share led by new product launch and network expansion augurs well for the company. Operating margin will be intact as company passes rise in raw material price to end customer by 0.8% in April 2018.

Financials: In Q4FY18, revenue grew by 41% YoY to Rs 1436 cr led by volume growth of 57% in tractor business. EBITDA margin expanded by 480 bps YoY. PAT is up by 153% YoY to Rs 113 cr.

Share Market Tips For June 2018

Share Market Tips For June 2018: 5th Week

Mahindra & Mahindra (NSE: M&M) (Share Price: Rs.896): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Undervalued stock with trailing PE of 14.86x.

Reasons to consider: Continuous volume growth at average growth rate of ~8-10%. Healthy ROE of around 19-20%. Cash rich company.

Drivers: The company's aim is to increase the revenue share of global FES to 50% from ~35% currently by focusing on small farmers, key agriculture markets such as USA, Mexico, Brazil and Turkey , tractors and other relayed products, & strategic alliances. Long-term demand outlook remains healthy on account of normal monsoon and government focus on infrastructure in rural India.

Financial: Revenue increased by Rs 47577 cr in FY18 vs Rs 41895 cr in FY17. EBITDA margin improved to 24.5% in FY18. Net profit stood at Rs 4623 cr in FY18 vs Rs 3890 cr in FY17.

Reliance Home Finance (NSE: RHFL) (Share Price: Rs.59.80): Potential Buy

Valuation: Fairly valued with trailing PE of 15.97x as compared to close peers.

Reasons to consider: Reliance Home Finance's loan book recorded robust growth of 33 percent YoY and stood at Rs 16,380 crore. Asset quality remained intact, with the reported GNPA at (same levels as FY17) 0.8%. Provision coverage ratio stood at 47 percent up from 26 percent in FY17.

Drivers: Affordable housing segment driving loan book growth of the company. Also, focus on small ticket lending, and strict policy measures keep NPA under control. The company expects to maintain cost/income ratio in the current levels.

Financial: AUM increased to Rs. 16380 crores (+47%) as on FY18. In FY18 disbursements grew by 19% YoY to Rs 8,700 crore. Gross NPAs remained stable at 0.8%; NIMs improved to 3.9% in FY18 vs 3.4% in FY17. Return on Equity is at 15.1%.

Varroc Engineering Limited (IPO) : Potential Buy

About the Company: Varroc Engineering Limited is a global tier-1 (tier-1 companies are companies that directly supply to original equipment manufacturers ("OEMs")) automotive component group. It designs, manufactures and supplies exterior lighting systems, plastic and polymer components, electricals-electronics components, and precision metallic components to the passenger car, commercial vehicle, two-wheeler, three-wheeler and off-highway vehicle ("OHV") OEMs directly worldwide.
Varrocs position among Indias top auto component groups, with a 4% share of global automobile lighting systems and top PV (passenger vehicle) makers as customers. The company also has a 6% share of the premium PV lighting market, which is growing fast.

Object of the Issue: IPO is an offer for sale, company will not receive any proceeds from the IPO whereas it will create brand equity for the company by listing in the market. This offer for sale (OFS) comprising of 2,01,21,730 equity shares with face value of Rs 1 per share. The IPO size is worth Rs 1945.77 crore.

Listing details:

Issue Date: June 26, 2018- June 28, 2018
Price Band: Rs 965-967 per share
Lot Size: 15 Shares
Valuation: The company has PE of 28.9x considering the upper price band of Rs 967 with EPS of Rs 33.4 for FY18. Companys PE is less than average industry PE of 42.6x.

Reasons to Consider: The company is position among Indias top auto component groups, with a 4% share of global automobile lighting systems and top PV (passenger vehicle) makers as customers. The company also has a 6% share of the premium PV lighting market, which is growing fast. Operating margin and return ratios are lower than peers. As per management forecast that the company is increasing presence in the premium LED lighting segment which will lift realizations and margins. A low-cost manufacturing base and focus on driving up margins, lift the growth prospectus of the company. Presence in domestic and international market, strong relationship with clients, expansion plans in process would aid topline.

Financial: Revenue grew from Rs 6951 cr in FY15 to Rs 10378 cr in FY18. PAT rose up to Rs 451 cr in FY18 from Rs 17 cr in FY15. EPS increased to Rs 33.4 per share in FY18 from Rs 1.35 per share in FY15.

Astra Microwave Products (NSE: ASTRAMICRO) (Share Price: Rs.104): Potential Buy

Valuation: Undervalued stock as compared to close peers with trailing PE of 14.92x.

Reasons to Consider: Astra-microwave products Ltd (AMPL) is leading designer and manufacturer of wide array of radio frequency systems, microwave chips, microwave based components and subsystems for Defence, Telecom and Space. The company posted healthy numbers in FY18.

Drivers: Healthy order book of Rs 503 cr whereas order intake guidance was given of Rs 600 cr for FY19E. Company to benefit from improvement in demand for radars and subsystems due to ongoing indigenous missiles programmes. Meanwhile, companys focus in new projects will drive future growth.

Financial: In FY18 PAT grew by 7% YoY to Rs 61 cr. EBITDA margins improved by 510bps due to execution of higher margin domestic orders.

Share Market Tips For June 2018: 4th Week

Rites IPO : Potential Buy

About the company: RITES is a leading player in the transport consultancy and engineering sector in India. The company provides diversified and comprehensive solutions in all facets of transport infrastructure and related technologies. It has significant presence as a transport infrastructure consultancy organization in the railway sector. It also provides consultancy services across other infrastructure and energy market sectors including urban transport, roads and highways, ports, inland waterways, airports, institutional buildings, ropeways, power procurement and renewable energy. The company has experience spanning 44 years and has undertaken projects in over 55 countries including Asia, Africa, Latin America, South America and Middle East regions.

Objective of issue: IPO is an offer for sale through which company is going to divest 2,52,00,000 equity shares or 12.60% stake by the Government of India worth Rs 466.20 crores for face value of Rs 10. The company intends to use the proceeds from the IPO to finance projects like leasing of locomotives, rolling stock and other equipments, investment in BOT and BOOT projects, maintenance facilities, to build training centre at Gurgaon etc.

Listing details:

Issue Date- June 20, 2018 June 22, 2018
Issue Price- Rs 180-185 per share
Lot Size- 80 shares
Valuation: The company is undervalued with upper price band PE of 11x for 9MFY18 (EPS Rs 12.14) and 10x for FY17 (EPS- Rs 17.63) with no close peers.

Reasons to consider: RITES intends to increase scale of operations in railway infrastructure sector by taking up turnkey projects and expansion of services for metro and airport projects. Further, it also plans to increase share of business in renewable energy generation and power procurement for Indian Railways, manufacturing of wagons and joining upcoming opportunities like station development. This could meaningfully improve its order book and thereby the revenues. Right now company is having healthy orderbook of Rs 48 bn which provides three years of revenue visibility. Expanding international foothold and strong financials plays well for the company.

Financial: Revenue from operations has increased at a CAGR of 15.60% from Rs 10,12.68 cr in the FY15 to Rs 1353.35 cr in the FY17, and its PAT has increased at a CAGR of 7.63% from Rs 3,12.21 cr in FY15 to Rs 3,61.66 cr in the FY17.

Pitti Engineering (NSE: PITTIENG) (Share Price: Rs.88): Potential Buy

Valuation: Overvalued as compared to close peers with trailing PE of 23.53x.

Reasons to Consider: The company posted healthy numbers in Q4FY18. Equity of company is Rs 14.92 cr with huge reserves of Rs 134 cr. The company reduced debt to 0.57x as of no from 1.72x in FY17.

Drivers: The company is manufacturer of stator & rotor core assemblies, die cast rotors, high precision machine components, pole assemblies, specialized electrical steel lamination, etc. It also manufactures special lamination and stamping for all kind of machines. Stable industrial growth provides good demand for the company.

Financials: In Q4FY18, net sales grew by 40% YoY to Rs 127 cr. EBITDA margin rose to 14.65% vs 8.39 in Q4FY17. PAT increased by whopping 1993% YoY to Rs 2.7 cr.

Jamna Auto Industries Ltd (NSE: JAMNAAUTO) (Share Price: Rs.89): Potential Buy

Valuation: Overvalued with trailing PE of 28.43x as compared to close peers (less than last few weeks trailing PE of 31x).

Reasons to Consider: The company posted strong Q4FY18 numbers. The company enjoys healthy leverage status with D/E of 0.3x. The company maintains ROE of 33%.

Drivers: The company placed well to ride commercial vehicle sales cycle. The company has strategical location advantage with facility at close proximity to OEM players which saves logistic cost and also keep market share intact with high entry barrier to new players.

Financials: In Q4FY18, net sales grew by 26.7% to Rs 596 cr YoY. EBITDA margin stood at 15.01%. PAT up by 47.27% to Rs 46.72 cr.

Bata India (NSE: BATAINDIA) (Share Price: Rs.825): Avoid

Valuation: Overvalued as compared to close peers with trailing PE of 48.11x

Reasons to avoid: Revenue growth will be lower than peers due to increased competition. Currently stock will is trading at all time high levels.

Drivers: New brand "Hush Puppies" are loosing market share on account of unavailability of stock due to poor inventory management at store level. In such case other organised players might gain market share than Bata.

Financials: In Q4FY18, net sales down by 602% QoQ to Rs 632.3 cr. EBITDA margin compressed to 13% QoQ from 16.5% in Q3FY18. PAT doen by 23.6% QoQ to Rs 52.1 cr.

TCS (NSE: TCS) (Share Price: Rs.1841): Potential Buy

Valuation: Overvalued as compared to close peers with trailing PE of 27.3x.

Reasons to consider: The company posted healthy numbers in FY18 led by double digit growth in cloud and cyber security services. Low attrition rate of average 11% and healthy utilization rate plays well for the company.

Drivers: Stable currency led to currency growth in coming times. Retail vertical to drive growth in CY18. Tepid headcount addition would keep margin healthy. The board of directors of the company has approved a proposal to buyback up to 7,61,90,476 equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore , at Rs 2,100 per equity share.

Financials: In FY18, revenue has grown by 4.4% to Rs 1,23,104 cr. Operating income stood at Rs 30,502 cr with margin of 24.8%. Net income stood at Rs 25,826 cr with margin of 21%. EPS is Rs 134.19/share.

Share Market Tips For June 2018: 3rd Week

Ashok Leyland (NSE: ASHOKLEY) (Share Price: Rs.142): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Fairly valued with trailing PE of 23.79x as compared to close peers.

Reasons to consider: The company posted healthy numbers in FY18. The management expects to continue its strong growth over FY19, on the back of domestic infra-led M&HCV demand, hub & spoke model doing well and international markets performing well. Overloading restrictions seem to have eased only in UP and Rajasthan, where Ashok Leyland has relatively lower presence. Hence, overloading ease can have only ~1-2% impact on the company.

Drivers: Scrappage policy expected to come in by Apr-20 will be a major growth driver for the CV industry. Increased government focus on infrastructure spend, pre-buying ahead of BS VI implementation, scrappage policy, shift towards hub and spoke model and pickup in mining activities would led the growth momentum to continue for the M&HCV segment. Order from defense sector fuels topline of the company.

Financial: Net revenue increased by 30% to Rs 26,170.3 cr in FY18. EBITDA rose by 23.4% to Rs 2711.2 cr in FY18. PAT is up by 25.5% to Rs 1534.8 cr in FY18.

Fine Organics Industries Ltd (IPO) (Price band: Rs.780 to 783): Potential Buy

Valuation: Consolidated EPS for Dec 2017 is Rs 26.38/share and for FY17 is Rs 25.56/share which gives PE of 30.63x with upper price band of Rs 783 per share, which is slightly overvalued.

Reasons to consider: The company posted healthy numbers in last five years. The company is market leader and largest producer of oleochemical based additives in India and a stronger player globally. Strong R&D capability and strategically located manufacturing facility at Mumbai plays well for the company. These additives have application in consumer and processed food, cosmetics, plastics, and packaging material. Sectors like consumer goods and FMCG drives growth of the company. Rising rural income and increasing demand for FMCG goods augurs well for the company.

Financial: Revenue increased to Rs 789.2 cr in FY17 from Rs 497.5 cr in FY13. Total assets build up to Rs 457.6 cr in FY17 from Rs 255.3 cr in FY13. PAT rose to Rs 79.4 cr in FY17 from Rs 20.8 cr in FY13. ROE for FY17 is 24.65%.

Uttam Galva Steels (NSE: UTTAMSTL) (Share Price: Rs.11.65): Avoid

Valuation: Poor valuation with negative earnings.

Reasons to avoid: The company has delivered poor growth of -3.4% in last five years. The company has delivered negative return ratios.

Drivers: High debt company with low interest coverage ratio. Lack of operational efficiency by the company dragged the company down. The headwind of the industry is also not in support in the current market.

Financials: On YoY basis, the company has delivered negative earnings since FY14. Splitting year in quarters, the scenario is same as all quarters are in negative territory.

JM Financial (NSE: JMFINANCIAL) (Share Price: Rs.132): Potential Buy

Valuation: Undervalued stock with trailing PE of 17.39x as compared to close peers.

Reasons to consider: The company registered 37% growth in revenue in FY18 and 25% growth in net profit. Also, it forayed into SME lending which has shown good performance. Strong profitability, adequate capitalization and comfortable asset quality shows financial strength of the company.

Drivers: The company having diversified financial service profile with strong brand image. Ramp up in fund based lending business in past three years augur well for company's growth.

Financial: In Q4FY18, revenue of the company increased to Rs.80 cr in Q4FY18 (vs Rs 11.4 cr in Q3FY18). Net profit increased to Rs 49 cr in Q4FY18 . EPS rose to Rs.0.61/share.

Share Market Tips For June 2018: 2nd Week

Kalpataru Power Transmission Ltd (NSE: KALPATPOWR) (Share Price: Rs.442): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation:Slightly overvalued as compared to close peers with trailing PE of 24.22x.

Reasons to consider: The company posted healthy numbers in last five years. Revenue grew at an approximate 10% CAGR in last five years. The company has a strong order book of Rs.12,404 crore in FY18. Significant improvement in utilization levels average utilization over 80% for FY18.

Drivers:Government thrust for electrification would boost company's growth. Healthy order inflow gives a long-term revenue visibility.

Financial:Revenue grew by 18% in FY18 to Rs.2,756 crore. EBITDA margin expanded to 11.5% by 300 bps. PAT is up by 110% to Rs.34 crore.

Parsvnath Developers Ltd (NSE: PARSVNATH) (Share Price: Rs.12.75): Avoid

Valuation: Company is posting losses since last three years. There's no sign of recovery yet.

Reasons to avoid: The company's promoters have pledged 89.5% of their holdings. The company is sitting on high debt with a debt to equity ratio of 1.58x. The company has delivered poor growth of -20.98% over past five years and its return on equity of 2.18% over the last three years to have been very low. The company has contingent liabilities of Rs.255.48 crore.

Financial:The company posted net sales of Rs.278.9 crore in FY17 vs Rs.405.94 crore in FY16 while PAT is at a loss of Rs.144 crore in FY17 vs Rs.37.16 crore in FY16.

Flexituff International (NSE: FLRXITUFF) (Share Price: Rs.38.6): Avoid

Valuation: Undervalued stock with trailing PE of 16.14x as compare to closed peers.

Reasons to avoid: The company's promoters have pledged 81.26% of their holdings. The company is sitting on high debt with a debt to equity ratio of 1.99x.

Drivers:High debt of the company is eating out the bottom line. Further, the pledged share percentage is much higher due to there's not a clear long-term picture of the company.

Financial: The company posted net sales of Rs.1,467 crores in FY17 vs Rs.1,325 crores in FY16. EBITDA margin stood at 12.59% in FY17 while PAT margin stood at 0.39% in FY17 which is very low.

Intrasoft Technologies (NSE: ISFT) (Share Price: Rs.471): Avoid

Valuation: Overvalued stock with trailing PE of 48.68x as compare to closed peers.

Reasons to avoid:The company posted negative sales growth in last two years. Its receivable has increased to 204 days in FY17 which is more than two quarters.

Drivers: The company's business model based on E-commerce retailing and it is majorly in the USA. On account of this, higher receivables are eating out the current cash flow of the company.

Financial:On consolidated basis, sales registered de-growth by 58% in FY17. PAT margin compressed to 33.5% in FY17 vs 142.8% in FY16. ROE and ROCE stood at 3.46%/ 4.07% in FY17 vs 41.4% / 42.6% in FY16.

Splendid Metal Products Ltd. (NSE: SMPL) (Share Price: Rs.0.90): Avoid

Valuation:Company is posting negative earnings since 2013.

Reasons to Avoid: The company's promoters have pledged 100% of their holdings. The company has low-interest coverage ratio. The company has delivered poor growth of -18.15% over past five years as well as has low returns on equity of -19.63% for last three years.

Financial: The company has been posting negative results since 2013. Operating margins have been continuously falling down and losses are increasing in folds now. Compared to FY17, in FY18 the company posted two-fold more losses. Interest expenses are increasing year after year.

Graphite India Ltd. (NSE: GRAPHITE) (Share Price: Rs.0.90): Avoid

Valuation: Stock is undervalued with training PE of 18.05x.

Reasons to Avoid: The company has reduced its debt and now it can be considered as a virtually debt free company. The company has been maintaining a healthy dividend payout ratio as well. The company has improved realization and higher capacity utilization. Stock is in circuit now but can be considered after it will start trading normally.

Financial:Numbers are improving with healthy profit margins. Company has outperformed market by posting seven-fold jump in its net profit. The growth is driven by a combination of higher volumes, price realization and capacity utilization which is increased from 74% to 85% y-o-y.

Share Market Tips For June 2018: 1st Week

Refex Industries (NSE: REFEX) (Share Price: 13.8): Avoid (10 Steps To Pick The Best Stocks)

Valuation: Overvalued stock with PE multiple of 22x.

Reasons to consider: Promoter holding is low, I.i, 31.5% which is low as compared to closed industry peers. Promoter's stake has decreased. Promoters have pledged 27.69% of their holdings. The company has contingent liabilities of Rs.48 crore against earnings of 0.46 crore in FY18.

Financial: Numbers are uncertain for the company. Both quarter and annual numbers are way below expectations. Lack of operational efficiency is hammering the company down.

Flexituff International (NSE: FLRXITUFF) (Share Price: Rs.46.5): Avoid

Valuation: Undervalued stock with trailing PE of 16.14x as compare to closed peers.

Reasons to avoid: The company's promoters have pledged 81.26% of their holdings. The company is sitting on high debt with debt to equity ratio of 1.99x.

Drivers: High debt of the company is eating out the bottom line. It's very difficult to form a clear long-term picture of the company due to the high pledged share percentage.

Financial: The company posted net sales of Rs.1,467 crores in FY17 vs Rs.1,325 crores in FY16. EBITDA margin stood at 12.59% in FY17 while PAT margin stood at 0.39% in FY17 which is very low.

Axiscades Engineering Technologies (NSE: AXISCADES) (Share Price: Rs.139): Avoid

Valuation: Overvalued with trailing PE of 64.43x as compared to peers.

Reasons to avoid: Operating profit of the company has been impacted due to higher project costs from the US since last one year, which in turn is eating out its net profit.

Drivers: The company has a global presence in the aerospace engineering sector and one of the niche players.

Financial: In Q1FY18, net sales down by 16% Y-o-Y to Rs 53 crores. EBITDA margin stood at 6.2% vs 16.93% in Q1FY17. PAT is negative.

Share Market Tips For May 2018

Share Market Tips For May 2018: 4th Week

JM Financial (NSE: JMFINANCIAL) (Share Price: Rs.132): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Undervalued stock with trailing PE of 17.39x as compared to close peers.

Reasons to consider:The company registered 37% growth in revenue in FY18 and 25% growth in net profit. Also, it forayed into SME lending which has shown good performance. Strong profitability, adequate capitalization and comfortable asset quality shows financial strength of the company.

Drivers: The company having diversified financial service profile with strong brand image. Ramp up in fund based lending business in past three years augur well for company's growth.

Financial: In Q4FY18, revenue of the company increased to Rs.80 cr in Q4FY18 (vs Rs 11.4 cr in Q3FY18). Net profit increased to Rs 49 cr in Q4FY18 . EPS rose to Rs.0.61/share.

Kaveri Seed Company Ltd (NSE: KSCL) (Share Price: Rs.495): Avoid

Valuation: Undervalued stock as compared to industry peers with TTM PE of 15.29x.

Reasons to avoid: Expected price cut of cotton seed would impact company's top line by 5% and also margin can come under pressure due to high input and labor cost.

Drivers:Promoters have pledged more than 40% of their holdings. Interest coverage ratio is low. Operating margins are going down due to higher expenses. Being 60% product portfolio from cotton seed placed the company in direct impact. The company is looking forward to enhance in non cotton seed product but it will take some time.

Financial: The company posted weak numbers in Q4FY18. Revenue down by 52% QoQ to Rs 44 cr. EBITDA and PAT numbers were negative.

Uttam Galva Steels (NSE: UTTAMSTL) (Share Price: Rs.12): Avoid

Valuation:Poor valuation with negative earnings.

Reasons to avoid: The company has delivered poor growth of -3.4% in last five years. The company has delivered negative return ratios.

Drivers: High debt company with low interest coverage ratio. Lack of operational efficiency by the company dragged the company down. The headwind of the industry is also not in support in the current market.

Financial: On YoY basis, the company has delivered negative earnings since FY14. Splitting year in quarters, the scenario is same as all quarters are in negative territory.

Adhunik Industries (NSE: ADHUNIKIND) (Share Price: Rs.60.5): Avoid

Valuation:Poor valued with PE of 116x.

Reasons to avoid: As compared to industry peers, return ratios are low for the company. Market share is low as well and decreasing on Q-o-Q basis. Most of the times stock remain in the circuit as the volume is too low.

Drivers: Even after getting stability in the steel sector, the stock is travelling downward only while most of the closed peers are on the performing side. The company has delivered poor growth in last five years.

Financials: Revenue growth is continuously down with stable earning, but operating margins are getting hammered with negative operating cash flows. Debt is on increasing side as well.

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Housing Development and Infrastructure Ltd (BSE: HDIL) (Share Price: Rs.26.5): Avoid

Valuation: Undervalued stock with trailing PE of 7.8x.

Reasons to avoid:Company has delivered poor growth of -18.47% over the past five years. Company has a low interest coverage ratio as well as low return of equity since the last three years. Contingent liabilities are increasing.

Financials:Quarter numbers are little unstable while yearly numbers have shown uncertainty till date. Both revenue and earnings growth are declining. Margins are getting hammered year after year. Close peers are looking much stronger.

Share Market Tips For May 2018: 3rd Week

Bharat Electronics (NSE: BEL) (Share Price: Rs.125): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Overvalued stock with trailing PE of 18x as compared to close peers.Reasons to consider: The company posted healthy numbers over last five years. ROE improved to 17.63% from 14.52% in FY13. Slow down in order inflow and shrinking operating margin impacted the company. BEL is Indias one of the largest PSU in defence segment. It is a key beneficiary in defence capital expenditure. The company has a competitive profile.Drivers: Upcoming orders in H1FY19 from Akash (about Rs.60 bn), LR SAM- 7 ships (Rs 90 bn) can pace up the order inflow. The company also has many large projects in hand with revenue visibility till FY21. Its order book is slated to grow over the next few years because of steady demand for its existing product range, potential orders from high-value projects (e.g., tactical communication systems) and growth opportunities in the non-defence/export segments.Financial: Revenue of the company increased to Rs.8654 cr in FY17 from Rs.6272 cr in FY13. EBITDA margin expanded to 25.56% in FY17 from 20.53% in FY13. EPS rose to Rs.6.20/share from Rs.3.45/share in FY13.

Liberty Shoes Ltd. (NSE: LIBERTSHOE) (Share Price: Rs.202): Avoid

Valuation: Overvalued stock as compared to industry peers with PE of 59x.
Reasons to avoid: The company has delivered poor growth of 3.38% over last five years. The company has a low return on equity of 7.93% for last three years. Promoters' stake has decreased. The company has low-interest coverage ratio. Financial: Quarter, as well as annual numbers, are on the falling side for the company. Lack of operational efficiency is hurting the company the most. Investors are trying to pull out their investment for the stock. Margins are falling continuously.

Ginni Filaments Ltd. (NSE: GINNIFILA) (Share Price: Rs.25.9): Avoid

Valuation: Overvalued stock as compared to industry peers with PE of 34x.

Reasons to avoid: The company has delivered poor growth of 1.43% over past five years. The company has a low return on equity of 7.62% for last three years.Drivers: Promoters have pledged more than 40% of their holdings. Interest coverage ratio is low. Operating margins are going down due to higher expenses.Financial: Quarter numbers are uncertain for the company. The case is nearly same for yearly results. Peers are posting stable growth numbers while the company is finding it difficult to survive in closed competition. Debt is on the growing side while repayment is slow and low.

Royal Orchid Hotel (NSE: ROHLTD) (Share Price: Rs.219): Avoid

Valuation: Overvalued stock with a troubled operational performance of the company.Reasons to avoid: Earnings, as well as revenue growth, are in the negative territory. The company has delivered poor growth of 0.23% for last five years. The company has the return on equity of -0.89 for last three years.Financials: On the YoY basis, the company is posting negative growth as far as the revenue and earnings are concerned. Cash flows are negative, too. The company lacks operational efficiency.

Aplaya (BSE: 511064) (Share Price: Rs.1.25): Avoid

Valuation: Overvalued stock as compared to industry peers with PE of 519x.Reasons to avoid: The company has delivered poor growth over the years. Due to poor earnings, the company has low return ratios. Promoter holding is low at 9.57%.Financials: Quarter numbers are falling for the company over the quarters. The case is nearly same for yearly results. Peers are posting stable growth numbers while the company is finding it difficult to survive in the close competition. Debt is on the growing side while repayment is slow and low.

Share Market Tips For May 2018: 2nd Week

Ganesha Ecosphere (NSE: GANECOS) (Share Price: Rs.636): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation:Overvalued stock with trailing PE of 25.29x as compared to close peers.
Reasons to consider: Revenue of the company grow at CAGR of 11.8% over last five years. Company reduced debt to 0.35x from 1.82x in FY14. The company is financially sound.
Drivers: The company has received an approval for the allotment of 26,52,520 equity shares of face value of Rs 10 each at a price of Rs 377 per share (including premium of Rs 367 per equity share) to raise upto Rs 100 crore. The company is one of Indias key player in PET recycling industry which having potential to capture untouched market.
Financial: In Q3FY18, revenue of the company increases to Rs 180 cr vs Rs 169 cr YoY. Operating profit is up to Rs 22 cr vs Rs 20.78 cr in Q3FY17. EPS stood at Rs 4.83/ share as against Rs 3.86/share.

UCO Bank (NSE: UCOBANK) (Share Price: Rs. 19.1) Share Market Tip: Avoid

Valuation: Overvalued stock with trailing PE of 451x as compare to closed peers.Reasons to avoid: The bank is stuck in legal war as CBI registered complaint against CMD. Investor need to hold stock with 2-3 years of vision to see recovery in bank
Financial: Numbers are poor for the bank. Bank is making continuous losses. Last couple of years were tough for the bank. Entire banking sector is in troubles now but UCO Bank is ahead in the list.

Lasa Supergenerics (NSE: LASA) (Share Price: Rs.83.5): AvoidValuation: Overvalued with negative earnings.

Reasons to avoid: CFO of the company Mr. Manish Chandrakant Bhosle resigned on 31st Jan 2018. High debt company. Weak Q3FY18 numbers.
Drivers: Weak pharma sector. Promoter's stake has decreased. The company has low-interest coverage ratio. Promoters have pledged 15% of their holdings. Volume is too low for good investor to survive.Financials: Earnings are negative. Ultimately company posted most of the return ratios, valuation ratios are on the negative side. Borrowings are on higher side and repayment is low.

Ginni Filaments Ltd. (NSE: GINNIFILA) (Share Price: Rs.27.8): Avoid

Valuation: Overvalued stock as compared to industry peers with PE of 34x.
Reasons to avoid: The company has delivered poor growth of 1.43% over past five years. The company has a low return on equity of 7.62% for last three years.
Drivers: Promoters have pledged more than 40% of their holdings. Interest coverage ratio is low. Operating margins are going down due to higher expenses.
Financial:Quarter numbers are uncertain for the company. The case is nearly same for yearly results. Peers are posting stable growth numbers while the company is finding it difficult to survive in closed competition. Debt is on growing side with repayment is slow and low.

Vardhman Holding (NSE: VHL) (Share Price: Rs.3814): Avoid

Valuation: Undervalued stock with trailing PE of 6.39x as compared to close peers.
Reasons to avoid: Low volume stock with uneven earning trend. In current quarter margins got contracted and earnings are down by 98% Q-o-Q.
Drivers: The company earns by investing in debt, equity and real estate asset which is in positive trend at present, still it is not reflecting in the company earnings.
Financial: In Q1FY18, net sales down by whopping 98% to Rs.3.91 crore Q-o-Q. EBITDA down by 98% Q-o-Q and 56% Y-o-Y. PAT of the company also tanked by 98% Q-o-Q and 61% Y-o-Y to Rs.2.63 crore.

Share Market Tips For May 2018: 1st Week

Apex Frozen Food (NSE: APEX) (Share Price: Rs.636): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Overvalued as compared to close peers with trailing PE of 81.36x.
Reasons to consider: Higher capacity with better utilization. Diversified geographical mix with the USA, UK and EU zone. New processing plant t in Ragampeta, East Godavari, with a total capacity of 20,000 MTPA is expected to be commissioned in Q2FY19. This capacity expansion will cater to growing demand.
Drivers: Increase in seafood intake. Seafood industry growing led by aquaculture production. Rising demand for Shrimp and Tuna in the USA (20-22% in 2020P) is driving its market share increase in consumption, globally. India is gaining market share on the back of its quality output at competitive prices.
Financial: Total income has grown at CAGR of 29% over last five years. EBITDA margin expanded to 7.8% in FY17 led by growing in-house farming and share of VAP. PAT grew at a CAGR of 28% over last five years. The company improved DE to 0.09x as of now from 1.14x in FY17.

Dredging Corporation India Ltd (NSE: DREDGECORP) (Share Price: Rs.610): Avoid

Valuation: Overvalued stock with PE of 433x.
Reasons to avoid: Interest coverage ratio of the company is low. Earning per share is about to touch zero levels. The company has delivered poor growth of 3.87% over last five years. The company has a low return on equity of 2.26% for last three years.
Financial: Numbers are falling down continuously. Revenue growth was down in FY17 while H1FY18 was poor as well. Numbers are falling like a house of cards. Profit margins are hammered last couple of years. Operational efficiency of the company is under surveillance.

Cineline India (NSE: CINELINE) (Share Price: Rs.78.5): Avoid

Valuation: Undervalued stock as compared to closed peers with PE of 20x.
Reasons to avoid: The company has delivered poor growth of -37.83% over last five years. The company has a low return on equity of 7.88% for last three years. Promoters have pledged 25.78% of their holdings.
Financial: Debt is on the increasing side while revenue is stable. Cash component is on the lower side. Quarter numbers were little uncertain while annual numbers were on the improving side.

Dr Reddys Laboratories (NSE: DRREDDY) (Share Price: Rs.2,140): Avoid

Valuation: Overvalued stock with PE of 32x.
Reasons to avoid: Promoter holding is just 28%. USFDA is adding troubles to pharma sector and most of the companies are under surveillance.
Drivers: Company has delivered poor growth of 7.37% over last five years. Due to USFDA troubles, investors are getting cautious and avoiding to invest pharma sector.
Financial: Numbers are falling down continuously. Revenue growth was down in FY17 and H1FY18 was poor as well.

Emkay Global Finance (NSE: EMKAY) (Share Price: Rs.154.5): Avoid

Valuation: Overvalued stock with trailing PE of 92x where industry PE is 59x. The stock is trading nearly 6 times of its book value.
Reasons to avoid: Financial numbers are not certain. There's a lot of uncertainty in the operational performance of the company.
Financial: Earnings nearly declined by 50% in FY17. Q1FY18 was significantly better as the company managed to cut down expenses and it ultimately reflected in earnings. But considering last few quarters, performance is under the shadow of a doubt.

Share Market Tips For April 2018

Share Market Tips For April 2018: 4th Week

Avanti Feeds (NSE: AVANTIFEED) (Share Price: Rs.2482): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Undervalued stock as compared to close peers with trailing PE of 25.19x.
Reasons to consider: Avanti feeds is a lead exporter of prawn & fish feed and shrimp processor from India. The company has grown at ~47% CAGR over the last five years. The company recorded strong financial numbers in last five years and in Q3FY18 as well owing to the rise in seafood demand over other forms of meat.
Drivers: India is well placed with the natural coastal line for this industry. The first crop of shrimp is progressing well. Also, international shrimp prices are reasonably stable which creates a win-win situation for the company. Also, the company is going to announce shares split and bonus shares at their board meeting on 9th May 2018.
Financial: During Q3FY18, consolidate revenue, EBITDA and net profit grew by 32%/ 131%/ 127% respectively. EPS stood at Rs 9.74 / share.

Capacite Infraprojects (NSE: CAPACITE) (Share Price: Rs.361): Potential buy

Valuation: Overvalued stock as compared to close peers with trailing PE of 35.52x.
Reasons to consider: Capacite Infraprojects is the fastest growing construction company. The company focuses on residential, commercial and institutional buildings. The company has grown with CAGR of ~86% over the last three years.
Drivers: The company has a healthy order book of ~Rs.6024 crores as on date with repeated client base and exclusive focus on MMR, NCR, Pune, Hyderabad, Bengaluru, Chennai and Kochi. It provides revenue visibility at ~4.5x. Strong, experienced management team and modern system framework worked well for the companys growth.
Financial: Strong financial performance over last four years shows financial strength of the company. Revenue grew from Rs.214 crores in FY14 to Rs.1157 crores in FY17. PAT also grew to Rs.70 crore in FY17 from Rs.4.1 crore in FY14. In 9MFY18, the company posted robust numbers. Total income, EBITDA and PAT grew by 16.4%/ 12.2%/ 33% respectively. Meanwhile, EBITDA margin expanded by 73 bps points. EPS stood at Rs.10.43/ share.

Sanco Trans Ltd (BSE: 523116) (Share Price: Rs.245): Avoid

Valuation: Overvalued with trailing PE of 450.28x.
Reasons to avoid: The market cap of the company is very low. On a consolidated basis, the company has posted negative earnings since last two years.
Drivers: Shipping and logistics industry is pacing up which can reflect in peers' financials. The company delivered flat growth of 1.3% since last five years.
Financials: Net sales stood at Rs.82 crores in FY17 vs Rs.76 crores in FY13. EBITDA stood at Rs.9.6 crores in FY17 vs Rs.15 crores in FY13. EPS stood at Rs.1.81 per share in FY17 vs Rs.35.37 per share in FY13.

Uttam Value Steels Ltd (NSE: UVSL) (Share Price: Rs.0.20): Avoid

Valuation: Poor valuation with negative earnings.
Reasons to avoid: The company has delivered poor growth of -1.81% in last five years. The company has delivered negative return ratios.
Drivers: Promoters have pledged more than 47% of their holdings. Lack of operational efficiency by the company dragged the company down.
Financials: On YoY basis, the company has delivered negative earnings since FY14. Splitting year in quarters, the scenario is same as all quarters are in negative territory.

Gangotri Textiles Ltd (NSE: GANGOTRI) (Share Price: Rs.0.05): Avoid

Valuation: Stock with falling fundamentals and poor valuation.
Reasons to avoid: Company has delivered negative growth over last few years. Interest coverage ratio is low. Promoters' holding is just 24%. Contingent liabilities are 122.95 crores.
Drivers: Company is engaged in manufacturing of cotton yarn, specificity yarn, fabric and ready-made garments. Demand is good for the products but the quality of the company products is little inferior as compared to peers.
Financials: The last couple of years company has shown significant improvement, but on YoY basis, the company is still delivering negative earnings. The market share of the company is low.

Share Market Tips For April 2018: 3rd Week

L&T Financial Holding (NSE: L&TFH) (Share Price: Rs.166): Can be considered

Valuation: Overvalued as compared to close peers with trailing PE of 24.18x and PB of 2.70x.
Reasons to consider: Newly appointed MD in July 2016, has a sole focus to achieve ROE of 20% by FY20. ROE of the company is improving continuously to 15.91% in Q3FY18 from 9.09% in Q1FY16. L&TFH committed to achieving its ROE target by cutting down defocused business and focusing on its core business area. It also has robust loan book with strong growth record from every segment (22.6% YoY in Q3FY18).
Drivers: Strong parentage from management, the company would be able to grow business in future as well on account of good traction from microfinance, real estate and housing finance segment. The company also improved GNPA 31 bps QoQ. Improving asset quality, strong parentage and controlled expenses poised well for companys growth.
Financials: In Q3FY18, disbursement grew by 87.9% YoY leading to strong loan book growth of 22.6% YoY. Net interest margin improved by 67 bps QoQ to 6.85% led by rural and housing segments. On asset quality, GNPA improved by 352 bps QoQ to 5.49% and NNPA improved by 443 bps QoQ to 2.87%. AAUM in Investment Management business increased 71.4% YoY.

Gayatri Sugars Ltd. (BSE: 532183) (Share Price: Rs.14.9): Avoid

Valuation: Undervalued stock as compared to industry peers with PE of 6.77x.
Reasons to avoid: The company has delivered poor growth of 2.1% over the past five years.
Drivers: Promoters have pledged more than 40% of their holdings. Interest coverage ratio is low. Operating margins are going down due to higher expenses.
Financials: Earnings are uncertain. YoY numbers were negative for the company whereas quarter growth is unstable. Debt is on increasing side.

Thirani Projects Ltd. (BSE: 538464) (Share Price: Rs.53): Avoid

Valuation: Overvalued stock as compared to industry peers with PE of 861x.
Reasons to avoid: Stock is trading 5 times its book value. Promoter holdings is low i.e. 20%.
Drivers: Margins were hammered down. Return ratios were also low. It is getting difficult for the company to survive the competition.
Financials: Quarter numbers are uncertain for the company. In the last couple of years, the company has shown significant improvement. However, on YOY basis the company is still delivering negative earnings. The market share of the company is low.

Ginni Filaments Ltd. (NSE: GINNIFILA) (Share Price: Rs.32): Avoid

Valuation: Overvalued stock as compared to industry peers with PE of 34x.
Reasons to avoid: The company has delivered poor growth of 1.43% over past five years. The company has a low return on equity of 7.62% for last three years.
Drivers: Promoters have pledged more than 40% of their holdings. The interest coverage ratio is low while the operating margins are going down due to higher expenses.
Financials: Quarter numbers are uncertain for the company. The case is nearly same for yearly results. Peers are posting stable growth numbers while the company is finding it difficult to survive the close competition. Debt is on the growing side with slow and low repayment.

A2Z Infra Engineering (NSE: A2ZINFRA) (Share Price: Rs.28.45): Avoid

Valuation: Overvalued with negative earnings.
Reasons to avoid: The company has weak financials as margins and final profit are both in the negative. Also, promoters of the company have pledged 96% of their shares.
Drivers: The company's board approved the issuance of 8 crore equity shares to lenders as a one-time settlement. The company belongs to the power sector which is growing slowly at this point. These developments have impacted the company's earnings significantly.
Financials: In Q1FY18, net sales down by 34% QoQ to Rs.112 crores. EBITDA and PAT witnessed negative numbers.

Share Market Tips For April 2018: 2nd Week

Bandhan Bank (NSE:BANDHANBNK) (Share Price: Rs.529): Can be considered

Valuation: Overvalued stock as compared to close peers with trailing PE of 57.13x and PB of 7.14x.
Reasons to consider: Bank has unique business model focused on serving underbanked and underpenetrated markets. Consistent track record of growing quality asset and liability franchise. Bank has a cost-efficient distribution network. Bank recorded consistent financial performance since last two years.
Drivers: Banks unique model is ideal for financial inclusion drive by the government with 55% of branches in the rural area. The experienced management team can drive ROE more than 14% in coming years.
Financials: In 9MFY18, the bank has earned NIM of 9.86%. The cost to income ratio stood at 35.38%. ROA stood at 4.07%. Gross advances increased by 33% while net interest income grew by 27% and profit after tax increased by 21% on YoY basis.

ABM International (NSE: ABMINTLTD) (Share Price: Rs.35.1): Avoid

Valuation: Stock is undervalued with PE multiple of 72x.
Reasons to avoid: Company has delivered poor growth of 6.8% over past five years. The company has a low return on equity of 4.08% for last three years. The company has contingent liabilities of Rs.13.76 Cr. The company might be capitalizing the interest cost.
Financials: Revenue growth is poor for the company over last five years. Uncertainty has been seen as far as business is concerned. Closed peers are performing strongly making way difficult for the company to survive in the hunt.

OK Play India (BSE: 526415) (Share Price: Rs.81): Avoid

Valuation: Overvalued as compare to peers with trailing PE of 368.60x.
Reasons to avoid: The company having debt with DE of 1.38x as of now. Revenue witnessed degrowth of 21% in FY17. It is not seeing any uptick in volume which can boost topline.
Drivers: Promoters have pledged 68.26% of their holding. The company has a portfolio of plastic toys and auto parts still it is not picking up momentum since past years.
Financials: ROE is low to 0.2% in FY17. PAT margin is flat at 0.03% in FY17. EPS was negative till FY16 and in FY17 is slightly positive to Rs.0.03 which is very low as compared to peers.

NCC (NSE: NCC) (Share Price: Rs.127): Avoid

Valuation: Overvalued stock with expensive valuation as compared to closed peers. The stock is trailing at PE of 121, which is too high.
Comment: Promoter's holding is just 19.56%. Promoters' have pledged more than 29% of their holdings. Contingent liabilities of the company have reached to Rs.1,673 crores.
Drivers: Standalone debt of the company has increased substantially to Rs.1794. The slowdown in execution and delay in payments had led to a significant rise in working capital for NCC in last few years.
Quarterly performance: Q1FY18 was significantly stable for the company as compared to last few quarters due to Nagpur metro project. But the company has to work on its execution pace in order to keep revenue visibility improving.
Annual performance: YOY performance of the company is going down since the last couple of years. Cash flows are negative whereas de-growth in revenue as well as in earnings has been seen.

Adhunik Industries (NSE: ADHUNIKIND) (Share Price: Rs.88): Avoid

Valuation: Poor valued with PE of 88x.
Reasons to avoid: As compared to industry peers, return ratios are low for the company. Market share is low as well and decreasing on Q-o-Q basis. Most of the times stock remain in the circuit as the volume is too low.
Drivers: Even after getting stability in the steel sector, the stock is travelling downward only while most of the closed peers are on the performing side. The company has delivered poor growth in last five years.
Financials: Revenue growth is continuously down with stable earning but operating margins are getting hammered with negative operating cash flows. Debt is on increasing side as well.

Share Market Tips For April 2018: 1st Week

Adani Enterprises (NSE: ADANIENT) (Share Price: Rs.148): Can be considered

Valuation: Stock is overvalued with PE multiple of 23x.
Reasons to consider: Company has low interest coverage ratio. Company has delivered poor growth of -1.06% over last five years. ROE of the company is low as compared to close peers.
Drivers: Promoter's have pledged 28.91% of their holdings. Company has contingent liabilities of Rs. 7206 cr. Adani Enterprices recently sold 100% stakes in subsidiary firm Adani Energy Ltd. Kindly be in touch with news.
Financials: Q3FY18 was much better. Company has posted good numbers and have shown intent of improvement. But considering Q2FY18, it looks difficult for the company management to match last year's performance.

Royal Orchid Hotel (NSE: ROHLTD) (Share Price: Rs.176): Avoid

Valuation: Overvalued stock with troubled operational performance of the company.
Reasons to avoid: Earnings as well as revenue growth are in the negative territory. Company has delivered poor growth of 0.23% over last five years. Company has return on equity of -0.89 for last three years.
Financials: On Y-o-Y basis, company is posting negative growth as far as the revenue and earnings are concerned. Cash flows are negative too. The company lacks operational efficiency.

Emco Ltd (NSE: EMCO) (Share Price: Rs.12.35): Avoid

Valuation: Uncertain with uncertain numbers.
Reasons to avoid: The company has low-interest coverage ratio. Nearly zero growth in last five years.
Drivers: The company is dealing with operational troubles. Return ratios are unable to contribute. Contingent liabilities increasing year after year and has touched to Rs.777 crore.
Financials: Fundamentals of the company are not in support of the business of the company. Revenue growth looks uncertain on the YoY basis. Financial troubles are adding uncertainty on the earnings side.

Uttam Galva Steels (NSE: UTTAMSTL) (Share Price: Rs.14.5): Avoid

Valuation: Poor valuation with negative earnings.
Reasons to avoid: The company has delivered poor growth of -3.4% in last five years. The company has delivered negative return ratios.
Drivers: High debt company with low interest coverage ratio. Lack of operational efficiency by the company dragged the company down. The headwind of the industry is also not in support in the current market.
Financials: On YoY basis, the company has delivered negative earnings since FY14. Splitting year in quarters, the scenario is same as all quarters are in negative territory.

Ginni Filaments (NSE: GINNIFILA) (Share Price: Rs.33): Avoid

Valuation: Overvalued stock as compared to industry peers with PE of 34x.
Reasons to avoid: The company has delivered poor growth of 1.43% over past five years. The company has a low return on equity of 7.62% for last three years.
Drivers: Promoters have pledged more than 40% of their holdings. Interest coverage ratio is low. Operating margins are going down due to higher expenses.
Financials: Quarter numbers are uncertain for the company. The case is nearly same for yearly results. Peers are posting stable growth numbers while the company is finding it difficult to survive in closed competition. Debt is on the growing side while repayment is slow and low.

FRAUD ALERT:

In this week fraud messages with Niveza's name have been making the rounds. The SMS does not provide a client ID. The SMS also states that you should buy a certain amount of shares, which we at Niveza India never do. Here's our actual analysis of the stock.

Aplaya (BSE: 511064) (Share Price: Rs.2.28): Avoid

Valuation: Overvalued stock as compared to industry peers with PE of 519x.
Reasons to avoid: The company has delivered poor growth over the years. Due to poor earnings, company has low return ratios. Promoter holding is low as well i.e. 9.57%
Financials: Quarter numbers are falling for the company over the quarters. The case is nearly same for yearly results. Peers are posting stable growth numbers while the company is finding it difficult to survive in closed competition. Debt is on growing side with repayment is slow and low.

Share Market Tips For March 2018

Share Market Tips For March 2018: 5th Week

Talbros Automotive Components (NSE: TALBROAUTO) (Share Price: Rs.279): Can be considered

Valuation: Compared to peers the valuation is fair with a trailing PE of 17.75x.
Reasons to consider: The company has achieved its target for Q3FY18 where it has achieved growth of 28% as against industry growth rate of 16%. The management is confident of achieving the target revenue of Rs.675-725 crores by FY20. Strong JV, clients and industry tailwinds fare well for the company's growth.
Drivers: The auto sector's performance was mainly due to improved rural sentiments, good monsoons (sale of tractors, etc), increased production of BS-IV compliant vehicles. The above factors and the upcoming BS-VI emission loan and safety norms will help in sustaining growth in the coming years. The company is already BS-IV compliant and also ready with BS-VI products. The company also has a healthy order book.
Financials: In 9MFY18, total income increased by 17% to Rs.377 crores. EBITDA margin expanded to 12.08%. PAT grew by 52.08% and PAT margin expanded to 4.70%.

Housing Development and Infrastructure Ltd (NSE: HDIL) (Share Price: Rs.40): Avoid

Valuation: Undervalued stock with trailing PE of 11.12x.
Reasons to avoid: Company has delivered poor growth of -18.47% over the past five years. Company has a low interest coverage ratio as well as low return of equity since the last three years. Contingent liabilities are increasing.
Financials: Quarter numbers are little unstable while yearly numbers have shown uncertainty till date. Both revenue and earnings growth are declining. Margins are getting hammered year after year. Close peers are looking much stronger.

Royal Orchid Hotel (NSE: ROHLTD) (Share Price: Rs.162): Avoid

Valuation: Overvalued stock with troubled operational performance of the company.
Reasons to avoid: Earnings as well as revenue growth are in the negative territory. Company has delivered poor growth of 0.23% over last five years. Company has return on equity of -0.89 for last three years.
Financials: On Y-o-Y basis, company is posting negative growth as far as the revenue and earnings are concerned. Cash flows are negative too. The company lacks operational efficiency.

Kilburn Engineering (NSE: KILBUNENGG) (Share Price: Rs.75.5): Avoid

Valuation: Undervalued stock as compared to peers. Currently trading at a trailing PE of 15.60x.
Reasons to avoid: The company witnessed flat growth in topline in last three years and at the same time its margins were under pressure. The company has delivered poor growth in the last few years.
Drivers: Recently company promoters raised stake in the company from 57% to 60% from the open market. As per company management, topline can remain flat for next one year.
Financials: Debt is on the increasing side. In Q1FY18, net sales were down by 40% Q-o-Q to Rs.30 crores. EBITDA down by 50% to Rs.2.66 crores. PAT down by 37% to Q-o-Q to Rs.1.11 crores. Margins came down drastically.

Flexituff International (NSE: FLRXITUFF) (Share Price: Rs.55): Avoid

Valuation: Undervalued stock with trailing PE of 16.14x as compare to close peers.
Reasons to avoid: The company's promoters have pledged 81.26% of their holdings. The company is sitting on high debt with debt to equity ratio of 1.99x.
Drivers: The company's high debt is eating out from the bottom line. The pledged share percentage is also much higher which does not give a long-term clear picture of the company.
Financials: The company posted net sales of Rs.1,467 crores in FY17 vs Rs.1,325 crores in FY16. EBITDA margin stood at 12.59% in FY17 while PAT margin stood at 0.39% in FY17 which is very low.

Share Market Tips For March 2018: 4th Week

Ganesh Benzoplast (NSE: 523586) (Share Price: Rs.82): Can be considered

Valuation: Undervalued as compared to close peers with trailing PE of 16.76x.
Reasons to consider: The company posted stellar numbers in Q3FY18. The company has reduced its finance cost which aids improvement in profit margin. The company has good brand image and loyalty of customer and has a monopoly in sodium benzoplast in India.
Drivers: The company caters to infra (liquid storage ) and chemical segment. Expanded storage capacity at JNPT and Cochin terminals which is able to add ~ Rs 90 crores in topline. The company is in process of the demerger of its chemical and liquid storage business to ensure greater focus.
Financials: In Q3FY18, income grew by 57.67% to Rs.46.56 crores. EBITDA grew by 42.02% YoY. PAT grew by 151% YoY while EPS increases to Rs.1.55 in Q3FY18.

Damodar Industries Ltd (NSE: DAMODARIND) (Share Price: Rs.126.50): Can be considered

Valuation: Undervalued as compared to close peers with trailing PE of 12.64x.
Reasons to consider: Damodar Industries provides quality products (synthetic blended yarns) at an affordable price. Healthy cash flow and reduced finance cost show the operational efficiency of the company.
Drivers: Lower wages than developed countries attract more exports. Rising per capita income, shifting interest towards branded products, superior quality products and favourable government policies support company's growth.
Financials: In Q3FY18, total revenue grew by 3.11% QoQ to Rs.155 crores. Improves operational efficiency lifted up net profit 26.67% QoQ/ 79.39% YoY to Rs.3.69 crore.

Kids Medical System (NSE: 540812) (Share Price: Rs.53): Avoid

Valuation: Poor valuation numbers.
Reasons to consider: Peer group companies are much stronger. Numbers are stable for the peer group. The stock has low volume. Market capitalization is too low. Low market cap and low volume together add risk in the stock.
Drivers: Stock used to be in circuit most of the times and investors' capital can get stuck in such stock and even can lose a lot of it.
Financials: Numbers are uncertain because of the size of the company. With the revenue and the earnings generated by the company, it is difficult to advance for any ratio.

Mangal Credit and Fincorp Ltd. (NSE: 505850) (Share Price: Rs.3.53): Avoid

Valuation: Stock is overvalued as compared to peers.
Reasons to consider: Closed peers are much stronger and well-known players of the sector. Promoter's stake has decreased. The company has a low return on equity of 2.46% for last three years. Capitalization of the company is low and considering the size of the company, it is difficult to survive with the strong peer group.
Drivers: Stock is low volume. Low volume usually attracts circuit and investors' capital gets stuck.
Financials: Numbers are stable considering the size of the company. Future is uncertain.

Educom Solutions (NSE: EDUCOMP) (Share Price: Rs.4.8): Avoid

Valuation: Poor valuation with unstable operational efficiency.
Reasons to consider: Promoters have pledged more than 85% of their holdings. The company has a negative return on equity since last few years. Contingent liabilities are increasing on the YoY basis.
Drivers: Working capital management looking down as current ratio and quick ratio both are going up on account of high accounts receivable. The company is facing stiff competition in the industry as it is impacting margins.
Financials: Company is posting negative earnings for last few years. Revenues have come down drastically. Cash flows are negative as well.

Share Market Tips For March 2018: 3rd Week

Indian Toners & Developers (NSE: 523586) (Share Price: Rs.249): Can be considered(10 Step Process To Confirm If It's A Buy)

Valuation: Undervalued stock as compared to close peers with trailing PE of 15.26x.
Reasons to consider: The company is the largest manufacturer and exporter of compatible toners for use in laser printers, the new age digital machines, multi-function printers, analogue copiers as well as wide format printers and copiers. It has a capacity of 3600 MT per annum. Consistent financial performance since last five years.
Drivers: Growth in IT sector, urbanization would likely fuels company's growth. The company has PAN India presence with 120 distributors, 600 dealers,1500 refillers and 44,000 photocopy outlets. PAN India presence of the company aids to cater the demand of every sector. It has a huge untapped market to catch with a global capacity of ~225000 TPA with after market share of 25%. Compatible product pricing helps to gain market share.
Financials: Revenue grown by five year CAGR of 13.4%. It has improved EBITDA margin from 20% to 22% in last five years. PAT of the company grown to Rs.21.6 crores in FY17 from Rs 10.9 crores in FY13.

Flexituff International (NSE: FLRXITUFF) (Share Price: Rs.63.8): Avoid

Valuation: Overvalued stock with trailing PE of 24.59x as compare to closed peers.
Reasons to avoid: The company's promoters have pledged 81.26% of their holdings. The company is sitting on high debt with debt to equity ratio of 1.99x.
Drivers: High debt of the company is eating out bottom line also pledged share percentage is much higher which does not give a long-term clear picture of the company. Also, rising commodity prices can hamper margin of the company.
Financials: The company posted net sales of Rs.1,467 crores in FY17 vs Rs.1,325 crores in FY16. EBITDA margin stood at 12.59% in FY17 while PAT margin stood at 0.39% in FY17 which is very low.

Idea Cellular Ltd. (NSE: IDEA) (Share Price: Rs.81): Avoid

Valuation: Stock is overvalued with poor fundamentals.
Reasons to avoid: On the monthly basis, the company is losing its subscriber base. In the month of July 2017, the company lost 2.3 million subscribers. Following to this, company's total customer base has decreased to Rs.19.39 crores. Data shows that the subscribers are opting to port to other networks. In the last couple of years, the company lost its market share more than 50%.
Drivers: Reliance Jio already has threatened entire telecom sector. Idea is one of the biggest losers of this. On monthly basis, the company is losing ARPU. In order to stay in the hunt, the company is losing margins just to match the offers provided by the peer group. Reliance Jio is giving offers with nearly zero margins.
Financials: Debt is rising on YoY basis. Return ratios are delivering negative results. The last couple of quarters were marginally stable but recovery is looking little far from here.

Adhunik Industries (NSE: ADHUNIKIND) (Share Price: Rs.73): Avoid

Valuation: Poor valued with PE of 88x.
Reasons to avoid: As compared to industry peers, return ratios are low for the company. Market share is low as well and decreasing on Q-o-Q basis. Most of the times stock remain in the circuit as the volume is too low.
Drivers: Even after getting stability in the steel sector, the stock is travelling downward only while most of the closed peers are on the performing side. The company has delivered poor growth in last five years.
Financials: Revenue growth is continuously down with stable earning but operating margins are getting hammered with negative operating cash flows. Debt is on increasing side as well.

Educomp Solutions (NSE: EDUCOMP) (Share Price: Rs.5.25): Avoid

Valuation: Poor valuation with unstable operational efficiency.
Reasons to avoid: Promoters have pledged more than 85% of their holdings. The company has a negative return on equity since last few years. Contingent liabilities are increasing on the Y-o-Y basis.
Drivers: Working capital management looking down as current ratio and quick ratio both are going up on account of high accounts receivable. The company is facing stiff competition in the industry as it is impacting margins.
Financials: Company is posting negative earnings for last few years. Revenues have come down drastically. Cash flows are negative as well.

Share Market Tips For March 2018: 2nd Week

HG Infra Engineering Ltd (NSE: HGINFRA) (Share Price: Rs.268): Can be considered(10 Step Process To Confirm If It's A Buy)

Valuation: Overvalued as compare to closed peers with post-IPO PE of 27.15x.
Reasons to consider: HG Infra is Jaipur based infrastructure construction, development and management firm with a focus on road projects including highways, bridges and flyover. The company got a good track record of last five years. Earnings growth is also higher due to reduced interest cost.
Drivers: HG Infra also got healthy order book, robust financial performance and good track record of previous projects. The experienced management team and sectoral tailwind make it attractive.
Financials: Revenue and net profit stood at Rs.1059 crores and Rs 53 crores respectively in FY17. Company's revenue, EBITDA and PAT grew at five-year CAGR of ~34%/ 27.5%/ 37% respectively.

Mirc Electronics (NSE: MIRCELECTR) (Share Price: Rs.47.8): Can be considered

Valuation: Overvalued as compared to closed peers with trailing PE of 35.47x.
Reasons to consider: The company has been posting healthy numbers since March 2017 quarter. The company launched new inverter air conditioners and looking to double its revenue from air conditioner segment to about Rs.720 crores.
Drivers: The company has 8% of market share which they expect to grow to double-digit in a year which can aid topline. The company is well placed in seasonal demand for AC.
Financials: In Q3FY18, the company recorded revenue of Rs.131 crores vs Rs.147 in Q3FY17. Operating profit stood at Rs.9.29 crores vs negative operating profit of Q3FY17. PAT grew to Rs.2.94 crores in Q3FY18 YoY.

Emco Ltd. (NSE: EMCO) (Share Price: Rs.16): Avoid

Valuation: Uncertain with uncertain numbers.
Reasons to avoid: The company has low-interest coverage ratio. Nearly zero growth in last five years.
Drivers: The company is dealing with operational troubles. Return ratios are unable to contribute. Contingent liabilities increasing year after year and has touched to Rs.777 crore.
Financials: Fundamentals of the company are not in support of the business of the company. Revenue growth looks uncertain on the YoY basis. Financial troubles are adding uncertainty on the earnings side.

Uttam Galva Steels Ltd. (NSE: UTTAMSTL) (Share Price: Rs.15.20): Avoid

Valuation: Poor valuation with negative earnings.
Reasons to avoid: The company has delivered poor growth of -3.4% in last five years. The company has delivered negative return ratios.
Drivers: High debt company with low interest coverage ratio. Lack of operational efficiency by the company dragged the company down. The headwind of the industry is also not in support in the current market.
Financials: On YoY basis, the company has delivered negative earnings since FY14. Splitting year in quarters, the scenario is same as all quarters are in negative territory.

Share Market Tips For March 2018: 1st Week

SREI Infrastructure Finance (NSE: SREINFRA) (Share Price: Rs.83.6): Can be considered

Valuation: Stock is trailing at PE multiple of 12.8x.
Reasons to consider: In the business of project financing, the key segment in which SREI lends include power projects, the transport sector as well as social and commercial infrastructure projects. The business witnessed strong growth in last few years led by new power and road sector loans.
Drivers: Company has skilled workforce with experienced business unit. Promoter's stake has increased.
Financials: Earnings are improving both QoQ and YoY. Return ratios are improving. Margins are strong.

ONGC (NSE: ONGC) (Share Price: Rs.187.5): Can be considered

Valuation: Stock is trailing with PE multiple of 13.15x.
Reasons to consider: Company is virtually debt free. Strong operational efficiency helped the company to keep margins intact.
Drivers: Company is high profit making with strong revenue growth. The company produces nearly 30% of India's crude oil requirement. It contributes nearly 70% of India's crude oil production and around 80% of India's natural gas production.
Financials: Numbers are progressive. Quarter after quarter company has improved its performance. Profit margins are strong as compared to peers. Ratios are improving.

India Cements Ltd (NSE: INDIACEM) (Share Price: Rs.159): Avoid

Valuation: Overvalued as compared to close peers with trailing PE of 49.27x
Reasons to avoid: Promoters have low shareholding of 28.37% and 43.83% of pledged holding. The company is not able to grow in operating profit margin since last two years. On 9MFY18 basis, margins of the company compressed by 271 bps on YoY basis.
Drivers: Strong demand in industry and higher volume; driving growth. Though increase in fuel cost dents the margins of the company.
Financials: In Q3FY18, net sales down by 4.3% YoY to Rs.1,213 crores. EBITDA margin compressed to 13.79% YoY. PAT down by 56.8% to Rs.15.24 crores.

Kesar Petroproducts Ltd (NSE: 524174) (Share Price: Rs.42.25): Avoid

Valuation: Undervalued as compare to close peers with trailing PE of 13.42x.
Reasons to avoid: Kesar Petroproducts has history of the violation of SEBI norms by promoters. Also, some of the directors do not receive any compensation or sitting fees. As per the annual report, CEO of the company receives Rs.3,10,000 as a compensation.
Drivers: The company has turnaround story since FY14 after change in management. It can be seen in numbers i.e. improvement in topline and margins. Though there is a change in the business model the same has not been mentioned by the company. As per FY13-FY14 annual report, the company has started high margin CPC Crude production but they did not mention when the operation actually commenced. It also has low capacity utilization i.e. below 40% in every segment.
Financials: In 9MFY18, revenue increased by 3.4% to Rs.130 crores YoY. EBITDA increased by 58.4% YoY to Rs.31.4 crores. PAT increased by 71.1% t Rs.24.9 crores.

Virtual Global Education (NSE: 534741) (Share Price: Rs.1.21): Avoid

Valuation: Undervalued as compared to close peers with trailing PE of 12.43x.
Reasons to avoid: Promoters have low shareholding of 28.37%. In Q3FY18, the company posted weak numbers on YoY and QoQ basis. The company has increased its receivables to 102 days in FY17 from 64 days in FY16 which is very high.
Drivers: Education and training sector has lot of competition due to unorganised players. Also, higher receivables puts pressure on operational efficiency in future.
Financials: Debtors turnover ratio slips to 3.56x in FY17 as compare to 5.71x in FY16. EPS is constant to Rs 0.05/share in FY17 and FY16.

Share Market Tips For February 2018

Share Market Tips For February 2018: 4th Week

Voltamp Transformers (NSE: VOLTAMP) (Share Price: Rs.1133.40) Share Market tips: Can be considered(10 Step Process To Confirm If It's A Buy)

Valuation: Undervalued stock with trailing PE of 15.06x as compared to close peers.
Reasons to consider: The company posted healthy numbers in Q3FY18. The company is cash rich with a parcel of land in hand where it is planning to set up a new facility. Undervalued status of the company makes it more attractive. It has shown continuous improvement in topline and operating profit margin since last four years.
Drivers: The company is engaged in manufacturing of oil-filled power and distribution transformer and dry type transformers which have application across sectors in power generation. Expected revival in power sector and investment cycle poised well for company's growth. Also, the order book of Rs.330 crores provides better revenue visibility over next two quarters.
Financials: In Q3FY18, the company posted revenue of Rs.160 crores vs Rs.110 crores in Q3FY17. EBITDA stood at Rs.31 crores vs Rs.14.30 crores YoY. The company posted EPS of Rs.23.33/share vs Rs.9.22 crores in Q3FY17.

Lasa Supergenerics (NSE: LASA) (Share Price: Rs.127.75): Avoid

Valuation: Overvalued with negative earnings.
Reasons to avoid: CFO of the company Mr. Manish Chandrakant Bhosle resigned on 31st Jan 2018. High debt company. Weak Q3FY18 numbers.
Drivers: Weak pharma sector. Promoter's stake has decreased. The company has low-interest coverage ratio. Promoters have pledged 15% of their holdings. Volume is too low for good investor to survive.
Financials: Earnings are negative. Ultimately company posted most of the return ratios, valuation ratios are on the negative side. Borrowings are on higher side and repayment is low.

Ginni Filaments Ltd. (NSE: GINNIFILA) (Share Price: Rs.34.8): Avoid

Valuation: Overvalued stock as compared to industry peers with PE of 34x.
Reasons to avoid: The company has delivered poor growth of 1.43% over past five years. The company has a low return on equity of 7.62% for last three years.
Drivers: Promoters have pledged more than 40% of their holdings. Interest coverage ratio is low. Operating margins are going down due to higher expenses.
Financials: Quarter numbers are uncertain for the company. The case is nearly same for yearly results. Peers are posting stable growth numbers while the company is finding it difficult to survive in closed competition. Debt is on growing side with repayment is slow and low.

A2Z Infra Engineering (NSE: A2ZINFRA) (Share Price: Rs.33.75): Avoid

Valuation: The company is overvalued with negative earnings.
Reasons to avoid: The company posted negative margins and final profit. Also, promoters of the company have pledged 96% of their shares.
Drivers: The board of the company approved the issuance of 8 crore equity shares to lenders as a one-time settlement. The company belongs to power sector which is growing slowly as of now. It impacted company's earnings.
Financials: In Q1FY18, net sales down by 34% QoQ to Rs.112 crores. EBITDA and PAT witnessed negative numbers.

Viceroy Hotels Ltd. (NSE: VICEROY) (Share Price: Rs.15.95) (Share Market tips): Avoid

Valuation: Stock is overvalued with poor fundamentals.
Reasons to avoid: Promoters have pledged more than 60% of their holdings. Promoter holding is 24% only. The company has interest coverage ratio. The company has delivered poor growth of 2.43% over past five years.
Drivers: The hotel industry is looking much stable as the government is taking a lot of efforts in making the majority of places in India as tourist spots. The hotel industry is in a lower slab of GST. It will be driving factor for the industry.
Financials: Company posted negative earnings in FY17. Signs of recovery are bleak. Debt is increasing with low-interest coverage. Due to lack of operational efficiency, margins are getting hammered.

Share Market Tips For February 2018: 3rd Week

Firstsource Solutions (NSE: FSL) (Share Price: Rs.47.50) (Share Market tips): Can be considered

Valuation: Undervalued stock with trailing PE of 10.61x as compared to close peers.
Reasons to consider: The company posted strong Q3FY18 numbers with margin expansion. The company has healthy valuation numbers making it more attractive. Healthcare segment of the company posted robust numbers in Q3FY18.
Drivers: The company won eligibility contract from one of the largest healthcare systems in North America where the company would be one of the preferred partners of customers to deliver service directly to their hospitals. Also, reduction in US tax rate is positive for the company.
Financials: In Q3FY18, the company posted net sales growth of 0.3% YoY to Rs.863 crores. EBITDA margin expanded to 13.09%. PAT grew by 42.7% YoY to Rs 99.55 crores. EPS grew by 40.78% YoY to Rs 1.45/per share.

Reliance Naval and Engineering Ltd (NSE: NAVAL) (Share Price: Rs.40.5) (Share Market tips): Avoid

Valuation: Valuation is down with negative earnings.
Reasons to avoid: Return ratios are falling as earning is negative. The contingent liability is increasing. Margins are getting hammered. There is lack of control on expenses.
Drivers: Entire promoter's holding is pledged. Promoter's holdings are less than 30%. The company has low interest coverage ratio. Peer group is much stronger as far as the business model is concerned.
Financials: Company has delivered negative earnings in last few years. Cash flows are negative as well. Comparing with industry numbers, debt to equity is too high for the company.

Supreme Tex Mart Ltd (NSE: SUPREMETEX) (Share Price: Rs.2.15) (Share Market tips): Avoid

Valuation: Negative earnings dragged the valuation down.
Reasons to avoid: Lack of operational efficiency hammering the margins. Debt is increasing continuously where repayment has nearly dried up.
Drivers: On the industry level, peers are much stronger as compared to the company. Considering negative earnings, return ratios are flat. Operating cash is negative as well. It's difficult for a company to survive with such operations.
Financials: Company is unable to manage expenses as compared to the revenue generated. EBITDA margins are negative. Start from revenue to net profit, negative growth has been seen. Cash profit is negative.

Godawari Power and Ispat (NSE: GPIL) (Share Price: Rs.560) (Share Market tips): Avoid

Valuation: Overvalued with negative earnings.
Reason To Avoid: The company is sitting on high debt and also promoters of the company have pledged 44.29% of their shares.
Drivers: Slow power sector growth affecting companies earnings. Also, high debt cost is eating its net profit.
Financials: Net sales of the company down by 8.86% to Rs.1,804 crores. The company registered negative earnings in FY17 on account of higher finance cost.

A2Z Infra Engineering (NSE: A2ZINFRA) (Share Price: Rs.34.5) (Share Market tips): Avoid

Valuation: The company is overvalued with negative earnings.
Reasons to avoid: The company posted negative margins and final profit. Also, promoters of the company have pledged 96% of their shares.
Drivers: The board of the company approved the issuance of 8 crore equity shares to lenders as a one-time settlement. The company belongs to power sector which is growing slowly as of now. It impacted company's earnings.
Financials: In Q1FY18, net sales down by 34% QoQ to Rs.112 crores. EBITDA and PAT witnessed negative numbers.

Share Market Tips For February 2018: 2nd Week

Pondy Oxide (NSE: 532626) (Share Price: Rs.574) Share Market tips: Can be considered

Valuation: Undervalued stock as compared to close peers with trailing PE of 9.76x.
Reasons to consider: Pondy Oxide is one of the top players in the battery industry. The company is India's leading producer of lead having a presence in lead alloys and PVC additives which are supplied to the battery, chemical and PVC manufacturers. Owing to the business background, it has grown at CAGR of 20% in last five years.
Drivers: Lead prices are trading closer to $ 2609/tonne which increase by 31% YoY. It would benefit coming in coming quarter. It has acquired land at Kancheepuram District for constructing a facility of manufacturing zinc metal (capacity- 9000 MT/annum), zinc oxide (capacity- 3600MT/annum).
Financials: In Q3FY18, the company posted a good set of numbers with PAT of Rs.8.04 crore against Rs.7.05 crore QoQ and Rs.6.97 crore YoY. EPS stood at Rs.14.42/ share and Rs.36.69/ share in 9MFY18.

Emco Ltd (NSE: EMCO) (Share Price: Rs.19.9) (Share Market tips): Avoid

Valuation: Uncertain with uncertain numbers.
Reasons to avoid: The company has low-interest coverage ratio. Nearly zero growth in last five years.
Drivers: The company is dealing with operational troubles. Return ratios are unable to contribute. Contingent liabilities increasing year after year and has touched to Rs.777 crore.
Financials: Fundamentals of the company are not in support of the business of the company. Revenue growth looks uncertain on the YoY basis. Financial troubles are adding uncertainty on the earnings side.

NCC (NSE: NCC) (Share Price: Rs.114) Share Market Tip: Avoid

Valuation: Overvalued stock with expensive valuation as compared to closed peers. The stock is trailing at PE of 121, which is too high.
Comment: Promoter's holding is just 19.56%. Promoters' have pledged more than 29% of their holdings. Contingent liabilities of the company have reached to Rs.1,673 crores.
Drivers: Standalone debt of the company has increased substantially to Rs.1794. The slowdown in execution and delay in payments had led to a significant rise in working capital for NCC in last few years.
Quarterly performance: Q1FY18 was significantly stable for the company as compared to last few quarters due to Nagpur metro project. But the company has to work on its execution pace in order to keep revenue visibility improving.
Financials: YOY performance of the company is going down since the last couple of years. Cash flows are negative whereas de-growth in revenue as well as in earnings has been seen.

OK Play India (BSE: 526415) (Share Price: Rs.114) Share Market Tip: Avoid

Valuation: Overvalued as compare to peers with trailing PE of 368.60x.
Reasons to avoid: The company having debt with DE of 1.38x as of now. Revenue witnessed degrowth of 21% in FY17. It is not seeing any uptick in volume which can boost topline.
Drivers: Promoters have pledged 68.26% of their holding. The company has a portfolio of plastic toys and auto parts still it is not picking up momentum since past years.
Financials: ROE is low to 0.2% in FY17. PAT margin is flat at 0.03% in FY17. EPS was negative till FY16 and in FY17 is slightly positive to Rs.0.03 which is very low as compared to peers.

Gangotri Textiles Ltd (NSE: GANGOTRI) (Share Price: Rs.0.15) Share Market Tip: Avoid

Valuation: Stock with falling fundamentals and poor valuation.
Reasons to avoid: Company has delivered negative growth over last few years. Interest coverage ratio is low. Promoters' holding is just 24%. Contingent liabilities are 122.95 crores.
Drivers: Company is engaged in manufacturing of cotton yarn, specificity yarn, fabric and ready-made garments. Demand is good for the products but the quality is little inferior for the company products as compared to peers.
Financials: The last couple of years company has shown significant improvement, but on YoY basis company still delivering negative earnings. Market share of the company is low.

Share Market Tips For February 2018: 1st Week

UPL (NSE: UPL) (Share Price: Rs.748) Share Market tips: Can be considered

Valuation: Fairly valued as compared to closed peers with trailing PE of 18.68x.
Reasons to consider: Diversified fully integrated agrochemical player with a footprint across the globe. Healthy and improving operating margin to ~21% since last two years. Higher return on equity of 37% shows financial strength of the company. Sales are growing with CAGR of 16% since last five years.
Drivers: In Budget-2018, government has announced many agriculture sector related schemes which would fuel sectoral growth. Also, global agro-chemical demand drives the sales growth of the company aided by strong global footprint. Product portfolio fits well in industry tailwind.
Financials: Sales grew by 16% in FY17 to Rs.16,312 crores. Operating margin stood at 21.31% while PAT margin stood at 10.42% in FY17. PAT of the company registered growth of 69% to Rs.1,752 crores in FY17.

Uttam Value Steels Ltd (NSE: UVSL) (Share Price: Rs.20.80) Share Market Tip: Avoid

Valuation: Poor valuation with negative earnings.
Reasons to avoid: The company has delivered poor growth of -1.81% in last five years. The company has delivered negative return ratios.
Drivers: Promoter's have pledged more than 47% of their holdings. Lack of operational efficiency by the company dragged the company down.
Financials: On YoY basis, company has delivered negative earnings since FY14. Splitting year in quarters, scenario is same as all quarter are in negative territory.

Flexituff International (NSE: FLRXITUFF) (Share Price: Rs.70.2) Share Market Tip: Avoid

Valuation: Overvalued stock with trailing PE of 24.59x as compare to closed peers.
Reasons to avoid: The company's promoters have pledged 81.26% of their holdings. The company is sitting on high debt with debt to equity ratio of 1.99x.
Drivers : High debt of the company is eating out bottom line also pledged share percentage is much higher which does not give a long-term clear picture of the company. Also, rising commodity prices can hamper margin of the company.
Financials: The company posted net sales of Rs.1,467 crores in FY17 vs Rs.1,325 crores in FY16. EBITDA margin stood at 12.59% in FY17 while PAT margin stood at 0.39% in FY17 which is very low.

Share Market Tips For January 2018

Share Market Tips For January 2018: 4th Week

Poddar Pigment (NSE: PODDARMENT) (Share Price: Rs.306) Share Market tips: Can be considered

Valuation: Undervalued stock as compared to close peers with trailing PE of 16.44x.
Reason to Consider: Company is cash-rich which gives room for organic and inorganic expansion and growth in future. Undervalued status of the company as compared to peers like Sudarshan Chemicals (PE- 40.44x) and Ultramine Pigments (PE- 27.6x) makes it more attractive.
Drivers: Company is in the manufacturing of colour and additives for dyeing of synthetic fibres, packaging, plastic products, cables etc which caters to consumer industry. These industry segments are always in demand in which company is well placed.
Financials: In FY17, the company reported revenue of Rs 329 crores vs Rs 325 crores in FY16. It is a zero debt company. ROCE and ROE stood at 24% and 17%. EBITDA margin improved to 9.68% from 8.78% in FY16. EPS stood at Rs 19.22 vs Rs 17.29 in FY16.

Gati (NSE: GATI) (Share Price: Rs.138) Share Market Tip: Avoid

Valuation: Stock is trailing with PE multiple of 28x.
Reasons to Avoid: Promoters stake has decreased. The company has delivered growth of 7.33% percent over past five years. Promoters have pledged more than 81.25% of their holdings.
Drivers: Gati is an Indian multinational courier delivery services company headquartered in Hyderabad, India. The company is engaged in the business of supply chain solutions with express distribution and also offers warehousing, freight forwarding, trading, cold chain, e-commerce and fulfilment services. Green India Venture Fund has sold 9.50 lakh shares of Gati. The fund house has offloaded these shares at Rs 134.19 on the NSE on November 21, 2017.
Financial: Quarter numbers were uncertain as far as revenue is concerned. Net earnings were stable though. Other income has contributed a lot to driving earnings on growing side.

Jindal Stainless Ltd (NSE: JSL) (Share Price: Rs.121) Share Market Tip: Avoid

Valuation: Overvalued stock with trailing PE of 31x where industry PE is 18x.
Reasons To Avoid: Promoters stake has decreased and the company has delivered a poor growth of 1.04% in last five years. Promoters have pledged more than 91% of their holdings.
Drivers: Jindal Stainless is reportedly planning to establish an incubation center for agriculture technology (agri-tech) startups. The company will set up the same in collaboration with the Japanese company Future Venture Capital Company. In the year of flat earnings, adding cost in incubation center can add debt to the company.
Financial: After the disastrous performance of FY16, the company has managed to deliver with positive earnings in FY17. Q1FY18 was flat as earnings were nearly zero as compared to negative earnings of the same quarter last fiscal.

Vardhman Holding (NSE: VHL) (Share Price: Rs.5280) Share Market Tip: Avoid

Valuation: Undervalued stock with trailing PE of 6.39x as compared to close peers.
Reasons to Avoid: Low volume stock with uneven earning trend. In current quarter margins got contracted and earnings are down by 98% Q-o-Q.
Drivers: The company earns by investing in debt, equity and real estate asset which is in positive trend at present, still it is not reflecting in the companys earnings.
Financial: In Q1FY18, net sales down by whopping 98% to Rs.3.91 crores Q-o-Q. EBITDA down by 98% Q-o-Q and 56% Y-o-Y. PAT of the company also tanked by 98% Q-o-Q and 61% Y-o-Y to Rs.2.63 crores.

Axiscades Engineering Technologies (NSE: AXISCADES) (Share Price: Rs.202) Share Market Tip: Avoid

Valuation: Overvalued with trailing PE of 64.43x as compared to peers.
Reasons to Avoid: Operating profit of the company has got impacted due to higher project cost from the US from last one year, which in turn is eating out its net profit.
Driver: The company has a global presence in the aerospace engineering sector and one of the niche player. Company's project cost from the US is affecting its margins as per management which is yet to improve.
Financial: In Q1FY18, net sales down by 16% Y-o-Y to Rs 53 crores. EBITDA margin stood at 6.2% vs 16.93% in Q1FY17. PAT is negative.

Share Market Tips For January 2018: 3rd Week

Sandur Manganese & Iron Ores (NSE: 504918) (Share Price: Rs.1336) Share Market tips: Can be consider

Valuation: Undervalued as compared to close peers with trailing PE of 13.95x.
Reason to Consider: The company witnessed sales growth since last three years at CAGR of around 12%. Also, it has shown operational efficiency by improving margin to double-digit up to 20% as compared to last two years which results in earnings growth.
Drivers: The growth in the production of manganese ore in India is highly correlated to the growth in the production of steel. Considering push for infrastructure, realty and rise in auto demand driving steel sector demand; which is a positive sign for manganese and iron ore industry.
Financials: It is zero debt company. In FY17, revenue grew by 57% to Rs.422 crores. ROE and ROCE stood at 14.22% and 23.63% respectively. Operating margin grew to 24.56%. It reported FEPS of Rs 62.22/per share vs Rs.8.44/per share in FY16.

Claris Lifesciences (NSE: 533288) (Share Price: Rs.365) Share Market Tip: Avoid

Valuation: Stock is trailing with PE multiple of 1x.
Reasons to avoid: Promoters have pledged more than 30% of their holdings. Promoters have decreased their stake. The company has a low return on equity of 7.16% for last three years. Dividend payout is on the lower side as well.
Drivers: Claris Lifesciences has received a letter from the promoter Athanas Enterprise to consider delisting of shares of the pharma company from the stock exchange. The promoter/promoter group currently holds 50.13% of the share capital of the company.
Financial: Results are not in support of the company. Both quarter and annual earnings were in trouble for last few years. Operating margins are negative as well.

MIRC Electronics Ltd (NSE: MIRCELECTR) (Share Price: Rs.49.7) Share Market Tip: Avoid

Valuation: Stock is trailing with PE multiple of 64x.
Reasons to avoid: Promoters have pledged more than 30% of their holdings. The company has delivered negative growth of -14.64 over past five years. Promoters stake has decreased. The company has low-interest coverage ratio.
Drivers: MIRC Electronics, which owns the Onida brand, has received board's approval for raising of an equity investment of Rs.144.12 crore from marquee investors to meet its long-term working capital and corporate requirements. The board has approved the issue of 1.92 crore equity shares and 1.92 crore warrants convertible into equity shares on preferential basis at issue price of Rs 37.53 to its several non-promoters.
Financial: Topline and bottom line both are uncertain due to uncertainty in business. Operational efficiency is hammered down the last couple of years. Though earnings were much stable as compared to FY15 and FY16. There is a marginal recovery in the business model but still lagging consistency.

Godawari Power and Ispat Ltd (NSE: GPIL) (Share Price: Rs.520) Share Market Tip: Avoid

Valuation: Overvalued with negative earnings.
Reason To avoid: The company is sitting on high debt and also promoters of the company have pledged 44.29% of their shares.
Driver: Slow power sector growth affecting companies earnings. Also, high debt cost is eating its net profit.
Financial: Net sales of the company down by 8.86% to Rs.1,804 crores. The company registered negative earnings in FY17 on account of higher finance cost.

Jaiprakash Associates (NSE: JPASSOCIAT) (Share Price: Rs.21.9) Share Market Tip: Avoid

Valuation: Overvalued with negative earnings.Reason To Avoid: Jaiprakash Associates experiencing selling pressure across all its business segments. The company is sitting on high debt and is undergoing debt restructuring process.Driver: The company is selling its assets to reduce its debt which is indirectly affecting earnings and enterprise value.Financial: Gross revenue of the company stood at Rs.6,757 crores in FY17 vs Rs.9,306 crores in FY16. The company posted negative earning for FY17 on account of higher finance cost.

Share Market Tips For January 2018: 2nd Week

JM Financials (NSE: JMFINANCIL) (Share Price: Rs.164) Share Market Tip: Avoid

Stock Investment Tip: Can be considered (10 Step Process To Confirm If Its A Buy)
Valuation: Overvalues with trailing PE of 22.22x.
Reasons to Consider: The company has posted continuous growth since last five years at five-year CAGR of ~21% in revenue front. The company also has healthy dividend payout ratio.
Drivers: Diversified business model in NBFC sector serves well for the company. Its lending profile growing on account of real estate growth under various government norms like RERA and Affordable Housing. ARS business of the company is in a sweet spot.
Financials: Gross income stood at Rs.2,359 crores in FY17 vs Rs.1,684 crores in FY16. AUM grew to Rs.1,2469 crores in H1FY18 vs Rs.11,874 crores in FY17. PAT grew to Rs.470 crores in FY17 vs Rs 400 crores in FY16.

Gangotri Textiles ltd (NSE: GANGOTRI) (Share Price: Rs.0.15) Share Market Tip: Avoid

Valuation: Stock with falling fundamentals and poor valuation.
Reasons to Avoid: Company has delivered negative growth over last few years. Interest coverage ratio is low. Promoters' holding is just 24%. Contingent liabilities are 122.95 crores.
Drivers: Company is engaged in manufacturing of cotton yarn, specificity yarn, fabric and ready-made garments. Demand is good for the products but the quality is little inferior for the company products as compared to peers.
Financial: The last couple of years company has shown significant improvement, but on YoY basis company still delivering negative earnings. Market share of the company is low.

Emco Ltd (NSE: EMCO) (Share Price: Rs.22.70) Share Market Tip: Avoid

Valuation: Poor valuation with uncertain numbers.
Reasons To Avoid: Interest coverage ratio is low. The company has delivered poor growth of less than one percent in last five years.Drivers: The company is dealing with operational troubles. Return ratios are on the negative side. Contingent liabilities of the company has touched to Rs.777 crore.
Financial: Fundamentals of the company are on the negative side. Revenue growth looks uncertain on the Y-o-Y basis. The company is unable to deliver positive earnings for last five years.

Sanco Trans Ltd (NSE: 523116) (Share Price: Rs.260) Share Market Tip: Avoid

Valuation: Overvalued with trailing PE of 84.78x.
Reasons to Avoid: Market cap of the company is very low. On a consolidated basis, the company posted negative earnings since last two years.
Drivers: Shipping and logistics industry is pacing up which can reflect in peers financials. The company delivered flat growth of 1.3% since last five years.
Financials: Net sales stood at Rs 82 crores in FY17 vs Rs 76 crores in FY13. EBITDA stood at Rs 9.6 crores in FY17 vs Rs 15 crores in FY13. EPS stood at Rs 1.81 per share in FY17 vs Rs 35.37 per share in FY13.

Uttam Value Steels Ltd (NSE: UVSL) (Share Price: Rs.0.40) Share Market Tip: Avoid

Valuation: Poor valuation with negative earnings.
Reasons to Avoid: The company has delivered poor growth of -1.81% in last five years. The company has delivered negative return ratios.
Drivers: Promoters have pledged more than 47% of their holdings. Lack of operational efficiency by the company dragged the company down.
Financial: On YoY basis, the company has delivered negative earnings since FY14. Splitting year into quarters, the scenario is the same as all quarters are in negative territory.

Share Market Tips For January 2018: 1st Week

UPL (NSE: UPL) (Share Price: Rs.770) Share Market tips: Can be considered

Valuation: Fairly valued as compared to closed peers with trailing PE of 20.78x.
Reasons to Consider: Diversified fully integrated agrochemical player with a footprint across the globe. Healthy and improving operating margin to ~21% since last two years. Higher return on equity of 37% shows financial strength of the company. Sales are growing with CAGR of 16% since last five years.
Drivers: Global agrochemical demand drives the sales growth of the company aided by strong global footprint. Product portfolio fits well in industry tailwind.
Financial: Sales grew by 16% in FY17 to Rs.16,312 crores. Operating margin stood at 21.31% while PAT margin stood at 10.42% in FY17. PAT of the company registered growth of 69% to Rs.1,752 crores in FY17.

Emami Ltd (NSE: EMEMILTD) (Share Price: Rs.1340) Share Market Tip: Avoid

Valuation: Stock is overvalued with PE multiple of 95x.
Reasons to Avoid: Over last five years, the company has delivered poor growth of 11.39%. Promoters have pledged 29% of their holdings.
Drivers: Emami Ltd is acquiring 30% stake in Helios Lifestyle Pvt Ltd for an undisclosed amount whereby the stake will be acquired by December 2018 through the infusion of required funds. Helios owns the fast-growing male grooming brand The Man Company which sells a range of premium grooming products for bath & body, beard, shaving and perfume and sold online through the company's own website.
Financial: Quarter numbers are uncertain whereas annual numbers are falling continuously since last five years. Net earnings slipped from Rs.402 cr in FY14 to Rs.340 cr in FY17. EPS is falling and margins are flat as well.

Flexituff International (NSE: FLRXITUFF) (Share Price: Rs.92.0) Share Market Tip: Avoid

Valuation: Undervalued stock with trailing PE of 16.14x as compared to closed peers.
Reasons to Avoid: The company's promoters have pledged 81.26% of their holdings. The company is sitting on high debt with debt to equity ratio of 1.99x.
Drivers: High debt of the company is eating out bottom line also pledged share percentage is much higher which does not give a clear long-term picture of the company.
Financials: The company posted net sales of Rs.1,467 crores in FY17 vs Rs.1,325 crores in FY16. EBITDA margin stood at 12.59% in FY17 while PAT margin stood at 0.39% in FY17 which is very low.

Axiscades Engineering Technologies (NSE: AXISCADES) (Share Price: Rs.224) Share Market Tip: Avoid

Valuation: Overvalued with trailing PE of 64.43x as compared to peers.
Reasons to Avoid: Operating profit of the company has got impacted due to higher project cost from the US for last one year, which in turn is eating out its net profit.
Driver: The company has a global presence in the aerospace engineering sector and one of the niche player. Company's project cost from the US is affecting its margins as per management which is yet to improve.
Financial: In Q1FY18, net sales down by 16% Y-o-Y to Rs.53 crores. EBITDA margin stood at 6.2% vs 16.93% in Q1FY17. PAT is negative.

Emco Ltd (NSE: EMCO) (Share Price: Rs.22.95) Share Market Tip: Avoid

Valuation: Poor valuation with uncertain numbers.
Reasons To Avoid: Interest coverage ratio is low. The company has delivered poor growth of less than one percent in last five years.
Drivers: The company is dealing with operational troubles. Return ratios are on the negative side. Contingent liabilities of the company has touched to Rs.777 crore.
Financial: Fundamentals of the company are on the negative side. Revenue growth looks uncertain on the Y-o-Y basis. The company is unable to deliver positive earnings for last five years.

Share Market Tips Till 2017

Share Market Tips For 4th Week Of December 2017

JM Financials (NSE: JMFINANCIL) (Share Price: Rs.150)

Stock Tip: Can be considered
Valuation: Overvalues with trailing PE of 22.22x.
Reasons to Consider: The company has posted continuous growth since last five years at five-year CAGR of ~21% in revenue front. The company also has healthy dividend payout ratio.
Drivers: Diversified business model in NBFC sector serves well for the company. Its lending profile growing on account of real estate growth under various government norms like RERA and Affordable Housing. ARS business of the company is in a sweet spot.
Financials: Gross income stood at Rs.2,359 crores in FY17 vs Rs.1,684 crores in FY16. AUM grew to Rs.1,2469 crores in H1FY18 vs Rs.11,874 crores in FY17. PAT grew to Rs.470 crores in FY17 vs Rs 400 crores in FY16.

MBL Infrastructure (NSE: MBLINFRA) (Share Price: Rs.27) (Share Market Tips):Avoid

Valuation: Stock is undervalued but fundamentals are poor.
Reasons to Avoid: Numbers are not showing any growth. Promoters have pledged more than 35% of their holdings. Promoter holding is low, i.e. 21.74%. Contingent liabilities of Rs.1092 crore. Interest coverage ratio is low.
Drivers: Government already has given a bigger push to infra sector but the company failed to capitalise the free run of the sector. Most of the closed peers have delivered significantly well in last few years but due to lack of operational efficiency, the company hardly managed to survive.
Financial: Construction and engineering sector is doing well but the company failed to show positive results. On YoY basis, the company is showing continuous downtrend as earnings are hardly making any positive impact on investors. Margins are hammered in the last couple of years.

Idea Cellular Ltd (NSE: IDEA) (Share Price: Rs.102) Share Market Tip: Avoid

Valuation: Stock is overvalued with poor fundamentals.
Reasons to Avoid: On the monthly basis, the company is losing its subscriber base. In the month of July 2017, the company lost 2.3 million subscribers. Following to this, company's total customer base has decreased to Rs.19.39 crores. Data shows that the subscribers are opting to port to other networks. In the last couple of years, the company lost its market share more than 50%.
Drivers: Reliance Jio already has threatened entire telecom sector. Idea is one of the biggest losers of this. On monthly basis, the company is losing ARPU. In order to stay in the hunt, the company is losing margins just to match the offers provided by the peer group. Reliance Jio is giving offers with nearly zero margins.
Financial: Debt is rising on YoY basis. Return ratios are delivering negative results. The last couple of quarters were marginally stable but recovery is looking little far from here.

NCC (NSE: NCC) (Share Price: Rs.135) Share Market Tip: Avoid

Valuation: Overvalued stock with expensive valuation as compared to closed peers. The stock is trailing at PE of 121, which is too high.
Comment: Promoter's holding is just 19.56%. Promoters' have pledged more than 29% of their holdings. Contingent liabilities of the company have reached to Rs.1,673 crores.
Drivers: Standalone debt of the company has increased substantially to Rs.1794. The slowdown in execution and delay in payments had led to a significant rise in working capital for NCC in last few years.
Quarterly performance: Q1FY18 was significantly stable for the company as compared to last few quarters due to Nagpur metro project. But the company has to work on its execution pace in order to keep revenue visibility improving.
Annual performance: YOY performance of the company is going down since the last couple of years. Cash flows are negative whereas de-growth in revenue as well as in earnings has been seen.

Adhunik Industries (NSE: ADHUNIKIND) (Share Price: Rs.97) Share Market Tip: Avoid

Valuation: Poor valued with PE of 88x.
Reasons to Avoid: As compared to industry peers, return ratios are low for the company. Market share is low as well and decreasing on Q-o-Q basis. Most of the times stock remain in the circuit as the volume is too low.
Drivers: Even after getting stability in the steel sector, the stock is travelling downward only while most of the closed peers are on the performing side. The company has delivered poor growth in last five years.
Financial: Revenue growth is continuously down with stable earning but operating margins are getting hammered with negative operating cash flows. Debt is on increasing side as well.

Share Market Tips For 3rd Week Of December 2017

NOCIL (NSE: NOCIL) (Share Price: Rs.182)

Share Tip: Potential Buy
Valuation: Undervalued stock with PE of 12.75x.
Reasons to Consider: Stock is still undervalued and has great potential as far as valuation and business model is concerned. Optimum utilisation of new plant helped in enhancing earnings.
Drivers: Looking at the numbers, 60 65% of the global consumption of rubber is by automotive tyres, with the rest used in - footwear production, latex products, cycle tyres and tubes, and OTR tyres among others. It supplies all domestic tyre manufacturers in addition to several international tyre companies and has around 3,200 clients in the non-tyre segment.
Financial: In FY17 company had delivered strong growth in term of earnings whereas net income surged by 54%. Q1FY18 was remarkable too with the rise of 46% in the net earnings. The company has managed to reduce debt from Rs.150 crore in FY15 to Rs.19 crore in FY17.

KGN Industries (BSE: 531612) (Share Price: Rs.1.96) Share Market Tip: Avoid

Valuation: Stock is overvalued with poor fundamentals.
Reasons to Avoid: The company has delivered poor growth of -27% over last five years. Numbers are actually static and so is the business.
Drivers: The business model of the company is not stable. Neither any expansion plans are on the cards nor any focus on stabilising the existing business.
Financial: Company is posting poor results continuously, both on QoQ and YoY basis. Return ratios are negative and margins are going down.

Jindal Drilling Industries (NSE: JINDRILL) (Share Price: Rs.157) Share Market Tip: Avoid

Valuation: Stock is overvalued with PE multiple of 50x.
Reasons to Avoid: Peers are much stronger. The company has delivered poor growth of -15.79% over last five years. Strict government regulations mean limited operational efficiency which directly affects margins. Increase in raw material cost affects the profitability of the company.
Drivers: Possibilities of reduction in subsidies on natural gas by the Government of India is causing a fall in demand. There is a lot of economic instability and fluctuations in India's policies which threats operations.
Financial: Numbers are falling since FY12. The company has hardly posted anything positive. Margins are falling continuously.

Nitin Fire Protection (NSE: NITINFIRE) (Share Price: Rs.7.1) Share Market Tip: Avoid

Valuation: Poor valuation with negative numbers.
Reasons to Avoid: Return ratios are on the negative side. Promoters have pledged more than 30% of their holdings. Contingent liabilities rose to Rs.224 crore. Promoter's stake is decreasing Q-o-Q basis.
Drivers: Looking at mutual funds data, few big players were on the selling side of the stock in last 6-8 months.
Financial: FY17 was considerably down for the company as earnings came down to the negative region even revenue has shown significant growth. Lack of operational efficiency dragged the numbers down.

Repro India (NSE: REPRO) (Share Price: Rs.812) Share Market Tip: Avoid

Valuation: Overvalued stock with PE of 123x.
Reasons to Avoid: Promoter's stake has decreased. The company has delivered a poor growth of -3.8% over last five years. The stock is trading 4 times its book value.
Drivers: Peer set is lower valued as compared to the company.
Financial: Company has delivered negative earnings in the last couple of years while cash flows are negative as well which points out lack of operational efficiency of the company. Falling profit margins with the negative return on equity.

Share Market Tips For 2nd Week Of December 2017

ACI Infocom Ltd (NSE: 517356) (Share Price: Rs.9.60)

Stock Tip: Avoid
Valuation: Overvalued with trailing PE of 438x.
Reason to Avoid: The company has low promoters holdings of 20.66%. The company's business is earning revenue but not able to maintain margin which results in very low earnings.
Drivers: the company is into IT hardware (manufacturing floppy disc) which is out of pace on account of new technology. Also, the company forays into real estate segment with small and mid-size projects on records but yet to pace up with current competitors in markets.
Financials: The company has very low ROCE and in ROE in the range of ~1% since last five years. The company has low cash in hand up to Rs.0.06 crores as of now which does not provide enough safety cushion.

Sanco Trans Ltd (NSE: 523116) (Share Price: Rs.260) Share Market Tip: Avoid

Valuation: Overvalued with trailing PE of 84.78x.
Reasons to Avoid: Market cap of the company is very low. On a consolidated basis, the company posted negative earnings since last two years.
Drivers: Shipping and logistics industry is pacing up which can reflect in peers financials. The company delivered flat growth of 1.3% since last five years.
Financials: Net sales stood at Rs 82 crores in FY17 vs Rs 76 crores in FY13. EBITDA stood at Rs 9.6 crores in FY17 vs Rs 15 crores in FY13. EPS stood at Rs 1.81 per share in FY17 vs Rs 35.37 per share in FY13.

Apollo Tyres (NSE: APOLLOTYRE) (Share Price: Rs.249.60) Share Market tips: Can be considered

Valuation: Undervalued with trailing PE of 18.78x as compare to closed peers.
Reason to Consider: The company is going through CapEx plans which can be seen in FY19/FY20 earnings. Currently, the rise in raw material prices and weak European market performance impacted earnings on YoY basis but QoQ basis raw material prices are stable which would support EBITDA margin on QoQ basis.
Drivers: Government imposes Anti-dumping duty on Chinese Tyres which would aid volume growth in future. Also, stable raw material prices on QoQ basis would give stable margins in the forthcoming financial year.
Financials: In Q2FY18, revenue grew by 5.9% QoQ and 12.7% YoY to Rs 3476 crores. EBITDA margin stood at 10.5% vs 8.4% in Q1FY18. PAT grew by 58.8% QoQ to Rs 140 crores.

Ujjivan Financial Services (NSE: UJJIVAN) (Share Price: Rs.363.05) Share Market Tip: Avoid

Valuation: Overvalued with negative earnings
Reason to Avoid: Ujjivan reported a loss in PAT due to the higher provision related to bad assets generated during demonetization. AUM growth is also subdued to ~3%.
Drivers: Degrowth in MFI and micro individual loans. Higher transition cost impacted margins and may result in low profits in FY18.
Financials: In Q2FY18, Interest income down by 3% YoY to Rs 339.3 crores. EBITDA down by 55% YoY resulting into negative PAT. Gross AUM is flat at Rs.6.7 crores. GNPA stood at 4.99%.

Infosys (NSE: Share Price: Rs.1016) Share Market Tip: Avoid

Valuation: Stock is fair valued.
Reasons to Avoid: Promoter holding is low in the company i.e. 12.75%. The company has a new management. Though Mr.Nandan Nilekani is there but the company has a new CEO as well. Investors are waiting to hear something from him regarding new plans for the company and the strategies he wants to put forward. Better strategy from investor's point of view could be to give some time to the company to get settle down.
Drivers: IT sector is going sideways for a long time and adding to this, change in top management for the company can take some cooling period. The stock is near resistance levels. Mr.Parekh is set to assume charge of the company that is recovering from a year-long acrimony between the previous management and the founders, led by N R Narayana Murthy.
Financial: Numbers are stable on YoY and QoQ basis. Little uncertainty has been seen during last few quarters. Margins are stable.

Share Market Tips For 1st Week Of December 2017

KEC International (NSE: CMP: 313) (KEC)

Share Tip: Can be considered
Valuation: Fairly valued with trailing PE of 23.67x as compared to close peers
Reasons to consider: Government of India recently launched Saubhagya scheme which aims at Power for all across the country by December 2018. This scheme would be beneficial for the company as it is one of the prominent players in power transmission and distribution.
Drivers: The company is sitting on a heavy order book as of date worth approximately Rs.14,500 crores at domestic and international front. Also, the company gets most of the orders form Power Grid Corporation which helps in providing transmission lines to villages. Power Grid Corporation is also the beneficiary of Saubhagya scheme.
Financial: The company registered growth of 6% Y-o-Y in Q1FY18 in revenue. PAT rose by whopping 104% Y-o-Y to Rs 63 crores. EBITDA margin improved to 9.3% in Q1FY18 vs 8.4% in Q1FY17.

Reliance Naval and Engineering (NSE: RNAVAL)(CMP: 36.2) (Share Market Tips): Avoid

Valuation: Stock is overvalued with poor fundamentals.
Reasons to Avoid: Promoters have pledged 100% of their holdings. Interest coverage ratio of the company is low and debt is increasing. The company has delivered poor growth of -22.58% over past five years.
Drivers: In the defence sector, peers look much stronger. Peers have stronger order book with intact revenue visibility.
Financial: Last 3-4 years were in trouble for the company. The company posted continuous losses. The company is dealing with negative cash flows. The story is same on QoQ basis. Nearly all quarters are on the negative side. Return ratios are negative. Debt is on the higher side and rising over the years.

Viceroy Hotels Ltd (NSE: VICEROY) (CMP: 16.75Share Market Tip: Avoid

Valuation: Stock is overvalued with poor fundamentals.
Reasons to Avoid: Promoters have pledged more than 60% of their holdings. Promoter holding is 24% only. The company has interest coverage ratio. The company has delivered poor growth of 2.43% over past five years.
Drivers: The hotel industry is looking much stable as the government is taking a lot of efforts in making the majority of places in India as tourist spots. The hotel industry is in a lower slab of GST. It will be driving factor for the industry.
Financial: Company posted negative earnings in FY17. Signs of recovery are bleak. Debt is increasing with low-interest coverage. Due to lack of operational efficiency, margins are getting hammered.

Flexituff International (NSE: FLRXITUFF) (CMP: 80.1) Share Market Tip: Avoid

Valuation: Undervalued stock with trailing PE of 16.14x as compare to closed peers.
Reasons to Avoid: The company's promoters have pledged 81.26% of their holdings. The company is sitting on high debt with debt to equity ratio of 1.99x.
Drivers: High debt of the company is eating out bottom line also pledged share percentage is much higher which does not give a long-term clear picture of the company.
Financials: The company posted net sales of Rs.1,467 crores in FY17 vs Rs.1,325 crores in FY16. EBITDA margin stood at 12.59% in FY17 while PAT margin stood at 0.39% in FY17 which is very low.

Axiscades Engineering Technologies (NSE: AXISCADES) (CMP: 140.65) Share Market Tip: Avoid

Valuation: Overvalued with trailing PE of 64.43x as compared to peers.
Reasons to Avoid: Operating profit of the company has got impacted due to higher project cost from the US from last one year, which in turn is eating out its net profit.
Driver: The company has a global presence in the aerospace engineering sector and one of the niche player. Company's project cost from the US is affecting its margins as per management which is yet to improve.
Financial: In Q1FY18, net sales down by 16% Y-o-Y to Rs 53 crores. EBITDA margin stood at 6.2% vs 16.93% in Q1FY17. PAT is negative.

Share Market Tips For 5th Week Of November 2017

JM Financials (NSE: JMFINANCIL) Share Market Tips: Can be considered (CMP: 149 as of 1/12/2017)

Valuation: Overvalues with trailing PE of 22.22x.
Reasons to Consider: The company has posted continuous growth since last five years at five-year CAGR of ~21% in revenue front. The company also has healthy dividend payout ratio.
Drivers: Diversified business model in NBFC sector serves well for the company. Its lending profile growing on account of real estate growth under various government norms like RERA and Affordable Housing. ARS business of the company is in a sweet spot.
Financials: Gross income stood at Rs.2,359 crores in FY17 vs Rs.1,684 crores in FY16. AUM grew to Rs.1,2469 crores in H1FY18 vs Rs.11,874 crores in FY17. PAT grew to Rs.470 crores in FY17 vs Rs 400 crores in FY16.

BS Limited (NSE: BSLIMITED) Share Market Tip: Avoid (CMP: 1.30 as of 1/12/2017)

Valuation: Overvalued stock with negative earnings.
Reasons to Avoid: The company has posted weak numbers in last five quarters consistently. It has negative earnings on account of higher operating expenses and negative growth in top line.
Drivers: Promoters have pledged ~54% of their holdings. Though power sector has pace up, but it is not seen in numbers of the company.
Financials: In Q2FY18, the company posted revenue of Rs.7.9 crores vs Rs.228 crores in Q2FY17. The company posted negative PAT and hence earnings are also negative.

Fortis Healthcare (NSE: FORTIS) Share Market Tip: Avoid (CMP: 145 as of 1/12/2017)

Valuation: Stock is fairly valued with PE of 22x.
Reasons To Avoid: Promoters stake has decreased. Promoters have pledged more than 82.55% of their holding. The company has delivered poor growth of 11.81% over past five years. Return ratios are low for the company.
Drivers: Health minister JP Nadda on Tuesday sought a detailed report from Fortis Memorial Research Institute in response to allegations of medical negligence and overcharging in its treatment of a seven-year-old girl who died of dengue, and Haryana is expected to probe the allegations. This may drag the stock further down in coming time.
Financial: In last four years, the company improved its operational performance and the same has reflected in the numbers. But FY18 is not in line with the expectations. First two-quarters of FY18 were way below expectations for the company. December used to be better and company might be hoping something better during December quarter.

OK Play India (BSE: 526415) Share Market Tip: Avoid (CMP: 143.05 as of 1/12/2017)

Valuation: Overvalued as compare to peers with trailing PE of 368.60x.
Reasons To Avoid: The company having debt with DE of 1.38x as of now. Revenue witnessed degrowth of 21% in FY17. It is not seeing any uptick in volume which can boost topline.
Drivers: Promoters have pledged 68.26% of their holding. The company has a portfolio of plastic toys and auto parts still it is not picking up momentum since past years.
Financials: ROE is low to 0.2% in FY17. PAT margin is flat at 0.03% in FY17. EPS was negative till FY16 and in FY17 is slightly positive to Rs.0.03 which is very low as compared to peers.

Adlabs Entertainment (NSE: ADLABS) Share Market Tip: Avoid (CMP: 69 as of 1/12/2017)

Valuation: Overvalued as earnings are negative.
Reasons to Avoid: The company witnessed an increase in debt (DE 2.67x) which weakens the balance sheet. Also, higher interest payment is affecting the net profit of the company.
Drivers: The company has many close competitors which affect the footfall growth. Low footfall growth can affect the topline as well as the margin of the company.
Financials: Net sales for FY17 is flat to positive. Net sale Stood at Rs.239 crores in FY17 vs Rs.234 crores in FY16. Net cash flow is negative since last two years.

Share Market Tips For 4th Week Of November 2017

Technocraft Industries (NSE: TIIL) Share Market tips: Can be considered

Valuation: Stock is undervalued with training PE of 13.75x
Reasons To Consider: The company has approved buyback of shares at Rs.525 per share. Also, sales grew at CAGR of ~2%. Net cash flow is also healthy for last six years.
Drivers: The company has diversified portfolio which consists of steel pipe, drum closure, textile and power infrastructure segment. The company is set to perform well due to traction in China for drum closure and infra push by the Indian government for scaffolding business.
Financials: The company has shown operational efficiency by improving EBITDA and PAT margin from 14.41%/ 7.25% in FY15 to 19.84%/ 10.75% in FY17. It also exhibited financial strength by improving ROE and ROCE from 12.69%/ 15% in FY15 to 15.98%/ 16.75% in FY17.

EIH (NSE: EIHOTEL) Share Market Tip: Avoid

Valuation: Stock is overvalued with training PE of 13.75x
Reasons To Avoid: The stock is currently overvalued as compared to close peers and trading at much higher level. The company posted weak numbers in Q2FY18 results. At margin front, the company is struggling to maintain the same pace, which affects its operational efficiency.
Drivers: The company is in expansion phase which would take time to reflect in numbers.
Financials: Revenue down by 10% to Rs.1,277 crore in FY17. ROE and ROCE down to 3.84%/ 5.1% in FY17 from 4.45%/6.99% in FY16.

HEG (NSE: HEG) Share Market Tip: Avoid

Valuation: Stock is overvalued with PE of 71x.
Reasons To Avoid: Company has delivered poor growth of -9.6% over past five years. The stock is near 52-week high side and considering current numbers, it is looking difficult for the company to carry the same momentum in coming quarters. Return ratios are negative since last three years.
Drivers: The domestic market is the main driver for the company. Recently, the company has done new acquisitions and focusing on new products and services. The company has a high investment in research and development which may affect ROI of the company. Raw material cost is rising which is ultimately hammering margins.
Financial: Considering the last couple of years, the company is posting negative earnings nearly in all quarters. Though in few quarters company tried hard to improve performance, but again delivered on the same line of loss. Ultimately, YoY performance was also hammered due to lower margins. In FY17, margins slipped around 80% as compared to FY16.

DLF (NSE: DLF) Share Market Tip: Avoid

Valuation: Stock is overvalued with PE of 135x.
Reasons To Avoid: Company has delivered poor growth of -4.27% over last five years. Borrowings increased in last year and interest coverage ratio of the company is low. Return ratios are low as well. High-interest payments are hammering down profit margins of the company. The book value of the company is 138.
Drivers: Company has the benefit of its exposure to businesses, segments and geographies which reduces the impact of economic cycles. There is limited global exposure as most of their business is in India.
Financial: On the YoY basis, operating margins improved in FY17, but high-interest payment hammered net earnings. In FY17, net earnings jumped nearly 100% but considering recent quarter performances of the company, there could be a sharp decline in the earnings of FY18. The company posted a sharp decline in revenue which increased uncertainty in the bottom line. Compared to the quarter ended September FY17 where net earnings were Rs.204.6 crore, in same quarter FY18, the company managed to deliver net earnings of Rs.12.57 crore.

Fortis Healthcare (NSE: FORTIS) Share Market Tip: Avoid

Valuation: Stock is fairly valued with PE of 22x.
Reasons To Avoid: Promoters stake has decreased. Promoters have pledged more than 82.55% of their holding. The company has delivered poor growth of 11.81% over past five years. Return ratios are low for the company.
Drivers: Health minister JP Nadda on Tuesday sought a detailed report from Fortis Memorial Research Institute in response to allegations of medical negligence and overcharging in its treatment of a seven-year-old girl who died of dengue, and Haryana is expected to probe the allegations. This may drag the stock further down in coming time.
Financial: In last four years, the company improved its operational performance and the same has reflected in the numbers. But FY18 is not in line with the expectations. First two-quarters of FY18 were way below expectations for the company. December used to be better and company might be hoping something better during December quarter.

Share Market Tips For 3rd Week Of November 2017

National Peroxide (NSE: NATPEROXIDE) Share Market tips: Can be considered (CMP: 2206 as of 16/11/2017)

Valuation: Overvalued as compare to peers with trailing PE of 24.05x.
Reasons To Consider: Revenue of the company growing since last three years at CAGR of ~3%. Operating profit margin improved to 28% in FY17 from 14% in FY15. Net profit margin also improved to 18% in FY17 from 3% in FY15. It's a zero debt company.
Drivers: Company is a pioneer producer of Hydrogen Peroxide in the industry. Pulp and paper industry is a key customer of Hydrogen Peroxide. The outlook for pulp and paper industry is positive. The government may impose anti-dumping duty on imported Hydrogen Peroxide which would be one big move in companies basket.
Financials: Net sales grew by 18% YoY to Rs.76.8 crores in Q2FY18. EBITDA margin improved to 35.87% in Q2FY18 vs 32.43% in Q2FY17. PAT margin improved to 23.35% in Q2FY18 vs 18.72% in Q2FY17.

Gateway Distriparks (NSE: GDL) Share Market Tip: Avoid ( CMP: 251.05 as of 16/11/2017 )

Valuation: Overvalued as compared to peers with trailing PE of 53.13x.
Reasons To Avoid: The company posted degrowth in net sales since last three years. Also, it is unable to sustain margin which affected its EPS which is down to Rs.6.84 per share in FY17 vs Rs.17.27 per share in FY15.
Drivers: Company is facing cash crunch problem. Meanwhile, promoters have a low shareholding in the company up to 26% and promoters have pledged shares of Rs.189.68 crores.
Financials: ROCE has decreased to 6.97% in FY17 vs 17.64% in FY15. Cash flow per share decreased to Rs.5.64. Revenue growth is flat in FY17 to 1.6%.

OK Play India (BSE: 526415) Share Market Tip: Avoid (CMP: 143.05 as of 16/11/2017)

Valuation: Overvalued as compare to peers with trailing PE of 368.60x.
Reasons To Avoid: The company having debt with DE of 1.38x as of now. Revenue witnessed degrowth of 21% in FY17. It is not seeing any uptick in volume which can boost topline.
Drivers: Promoters have pledged 68.26% of their holding. The company has portfolio of plastic toys and auto parts still it is not picking up momentum since past years.
Financials: ROE is low to 0.2% in FY17. PAT margin is flat at 0.03% in FY17. EPS was negative till FY16 and in FY17 is slightly positive to Rs.0.03 which is very low as compared to peers.

Adani Enterprises (NSE: ADANIENT) Share Market Tip: Avoid ( CMP: 157 as of 16/11/2017 )

Valuation: Stock is overvalued with PE of 26x.
Reasons To Avoid: Company has low-interest coverage ratio. Return ratios are low as compared to closed to peers. EPS nearly halved in the last couple of years.
Drivers: Raw material prices are increasing which is ultimately hammering margins of the company. Promoters have pledged more than 20% of their holdings.
Financial: Q2FY18 was negative for the company. Debt is on the increasing side due to which interest payment grew significantly. The case is nowhere different in the YoY performance of the company. Due to increase in raw material cost, expenses jumped instantly.

Bharat Financial Inclusion (NSE: BHARATFIN) Share Market Tip: Avoid ( CMP: 967 as of 16/11/2017 )

Valuation: Stock is overvalued with PE of 46x.
Reasons To Avoid: Return ratios came down drastically. Profit margins are hammered due to rise in expenses.
Drivers: Company has low-interest coverage ratio. Promoters' stake is decreasing quarter on quarter. Promoters' holding is too low, i.e. 1.65%.
Financial: Bottom line is uncertain as debt is increasing year on year. Interest payment is increasing significantly.

Aditya Birla Fashion and Retail (NSE: ABFRL) Share Market Tip: Avoid ( CMP: 152 as of 16/11/2017 )

Valuation: Stock is overvalued with PE of 221x.
Reasons To Avoid: Abof kick-started reasonably well as it's performance is reflected in quarterly earnings of the company. Numbers were uncertain.
Drivers: Aditya Birla Group is reportedly bringing down the shutters of its fashion e-tailing venture, Aditya Birla Online Fashion as it failed to compete against the deep discounting-led model of rivals Flipkart and Amazon. Company cutting salaries of their employees in order to remain on the profit side. Aditya Birla has shut down Trendin.com last year for the same reason.
Financial: On QoQ basis, the company has started reducing its losses. Its revenue is growing. Under expenses head, depreciation and interest payment dragging the profit down. The case is same on the YoY basis as well. Plans are looking unorganized.

Share Market Tips For 2nd Week Of November 2017

Gandhi Special Tubes (NSE: GANDHITUBE) Share Market tips: Can be considered

Valuation: Undervalued stock with trailing PE of 15.02x as compare to close peers.
Reasons To Consider: The company posted sales growth at CAGR of ~5% in last three years. It is a zero debt company. It also improved its operating margin from 30% in FY15 to ~42% in FY17.
Drivers: The company belongs to steel tubes and pipes sector which is going to be the next booming thing. Government's push for infrastructure sector will drive the company's growth.
Financials: In Q2FY18, the company posted revenue of Rs.29.78 crores in Q2FY18 vs Rs.30.6 crores in Q2FY17. Operating margin increased to 46.47% vs 39.68% in Q2FY17. EPS stood at Rs.5.91 per share vs Rs.5.19 per share in Q2FY17.

Lupin (NSE: LUPIN) Share Market Tip: Avoid

Valuation: Overvalued with trailing PE of 20.8x as compared to close peers.
Reasons To Avoid: Price correction over last six months reason for the weak FY18. The company also posted weak numbers in Q2FY18.
Drivers: Revenue of the company declined in the current quarter at USA geography due to rise in competition gGlumetza and gFortamet ; also surging pricing pressure due to the consolidation of players in the USA. Meanwhile, USFDA issued a warning letter for its manufacturing plants at Goa and Indore.
Financials: In Q2FY18, the company posted revenue of Rs.3952 crores in Q2FY18 vs Rs.4290 crores in Q2FY17. Operating margin declined to 23.4% vs 24.6% in Q2FY17. EPS stood at Rs.10.07 per share vs Rs.14.68 per share in Q2FY17.

Revathi Equipment (NSE: REVATHI) Share Market Tip: Avoid

Valuation: Overvalued with trailing PE of 47x.
Reasons To Avoid: The company is posting weak numbers since last two quarters. Also, the margin of the company compressed dramatically.
Drivers: At the macro front, overall production of the economy improved which is not seen in company's top line. Its sales witnessed degrowth of more than 40% in current quarter.
Financials: In Q1FY18, the company posted revenue of Rs.21.5 crores in Q1FY18 vs Rs.30.8 crores in Q1FY17. Operating margin declined to negative vs 6% in Q1FY17. The company posted negative earnings in the current quarter.

United Breweries (NSE: UBL) Share Market Tip: Avoid

Valuation: Overvalued stock with PE of 88x.
Reasons To Avoid: Company has delivered poor growth of 5.86% over last five years. The company is lagging expansion plans. As compared to closed peers, the company has a low return on equity of 11-13%.
Drivers: Margins hit a lot during last year and continuing to hit due to increased expenses. As far as the demand for the product is concerned, last quarter was poised as few new entrants hit the company.
Financial: Financial numbers took a hit due to operational performance. Adding to this, GST made the market worst for the company.

Punj Lloyd (NSE: PUNJLLOYD) Share Market Tip: Avoid

Valuation: Poor valued stock.
Reasons To Avoid: Company has delivered poor growth of -8.54% during last five years. Contingent liabilities are increasing and have touched Rs.1,810 crore.
Drivers: Return ratios are on the negative side. Promoters have pledged more than 61.98%. Margins are falling on Q-o-Q basis and no signs of any improvement as far as operations are concerned.
Financial: On Q-o-Q basis, numbers are uncertain when closed peers are looking much stable as far as earnings are concerned. On Y-o-Y basis, last three years were in trouble as the company delivered negative earnings.

Share Market Tips For 1st Week Of November 2017

Dilip Buildcon (NSE: DBL) Share Market tips: Can be considered

Valuation: Over valued with trailing PE of 28.27x as compared to close peers.
Reasons to Consider: The company posted continuous revenue growth by CAGR of 35% in last 5 years. Also it has a strong order book as of date. The management of the company aims at revenue and PAT growth of 10-15% in FY18. The company has ~Rs.2,550 crores of gross debt and do not wish to raise more rather it is focusing on reducing cost of debt in coming time.
Drivers: Bharatmala Project fuels the growth of the company. Considering good track record of execution of past projects, Dilip Buildcon would benefit in the future from this project.
Financials: Net sales grew by ~24% to Rs.5,097 crores. ROA improved to 5% in FY17 vs 3.87% in FY16. PAT grew by 56% to Rs.361 crores in FY17.

Adlabs Entertainment (NSE: ADLABS) Share Market Tip: Avoid

Valuation : Over valued as earnings are negative.
Reasons to Avoid : The company witnessed increase in debt (DE 2.67x) which weakens the balance sheet. Also, higher interest payment is affecting the net profit of the company.
Drivers: The company has many close competitors which affects the footfall growth. Low footfall growth can affect the topline as well as margin of the company.
Financials: Net sales for FY17 is flat to positive. Net sale Stood at Rs.239 crores in FY17 vs Rs.234 crores in FY16. Net cash flow is negative since last two years.

Reliance Naval and Engineering Ltd (NSE: RNAVAL) Share Market Tip: Avoid

Valuation: Poor valuation with negative earnings.
Reasons to Avoid: Return ratios are negative. Contingent liabilities are increasing. Margins are going down. There is no control on expenses.
Drivers: Promoter's have pledged entire holdings. Promoter's holdings is less than 30%. Interest coverage ratio of the company is low. Peer group looks better valued as compared to the company.
Financial: Company is delivering negative earnings since last few years. cash flows are negative as well. Debt to equity is more than 7, which is too high as compared to industry data.

Praj Industries (NSE: PRAJIND) Share Market Tip: Avoid

Valuation: Overvalued stock with PE of 45x.
Reasons to Avoid: The company has delivered poor growth of -3.69% over last 5 years. Return ratios are negative.
Drivers: Promoter's holding is around 32%. Dependency ion sugar prices is high and there used be lot of fluctuation in sugar prices.
Financial: On YoY basis, company has delivered falling sales growth. Operating margins impacted by 20% in last couple of years. Net profit slipped from Rs 60 Cr during FY15 to Rs 30 Cr in FY17.

Uttam Value Steels Ltd (NSE: UVSL) Share Market Tip: Avoid

Valuation: Poor valuation with negative earnings.
Reasons to Avoid: The company has delivered poor growth of -1.81% in last five years. The company has delivered negative return ratios.
Drivers: Promoter's have pledged more than 47% of their holdings. Lack of operational efficiency by the company dragged the company down.
Financial: On YoY basis, company has delivered negative earnings since FY14. Splitting year in quarters, scenario is same as all quarter are in negative territory.

Share Market Tips For 4th Week Of October 2017

Deccan Cements (NSE: DECCANCE) Share Market tips: Can be considered

Valuation: Undervalued stock as compared to peers. Currently trading at trailing PE of 17.8x.
Reasons to consider: The company is undervalued as compared to close peers. The company has grown by 13.5% in last three years. It also has delivered the return on investment in the range of 15-20% from last two years. It is a low debt company with DE of 0.08x.
Drivers: Rising civil infrastructure and sound financial status of the company fuels its growth.
Financial: In Q1FY18, net sales grew by 14.6% Y-o-Y to Rs.160 crores. EBITDA grew by 4.7% YoY to Rs.24.54 crores. PAT stood at Rs.11.38 crores.

Emco Ltd (NSE: EMCO) Share Market Tip: Avoid

Valuation: Poor valuation with uncertain numbers.
Reasons To Avoid: Interest coverage ratio is low. The company has delivered poor growth of less than one percent in last five years.
Drivers: Company is dealing with operational troubles. Return ratios are on the negative side. Contingent liabilities of the company has touched to Rs.777 crore.
Financial: Fundamentals of the company are on the negative side. Revenue growth looks uncertain on the Y-o-Y basis. Company is unable to deliver positive earnings since last five years.

Dish TV (NSE: DISHTV) Share Market Tip: Avoid

Valuation: Negative valuation with instability in numbers.
Reasons To Avoid: Promoter's have pledged more than 68% of their holdings. Interest coverage ratio of the company is low. Margins have dried last fiscal. Debt is on increasing side.
Drivers: H1 FY18 was significantly down for the company as both the quarters were on the non-performing side. Company was unable to generate any profits.
Financial: Last couple of years were on the non-performing side as hardly any growth in sales has been seen. Due to lack of operational efficiency, margins have been impacted.

Dr. Reddys Laboratories (NSE: DRREDDY) Share Market Tip: Avoid

Valuation: Overvalued stock with PE of 32x.
Reasons to Avoid: Promoter holding is just 28%. USFDA is adding troubles to pharma sector and most of the companies are under surveillance.
Drivers: Company has delivered poor growth of 7.37% over last five years. Due to USFDA troubles, investors are getting cautious and avoiding to invest pharma sector.
Financial: Numbers are falling down continuously. Revenue growth was down in FY17 and H1FY18 was poor as well.

Jindal Stainless Ltd (NSE: JSL) Share Market Tip: Avoid

Valuation: Overvalued stock with trailing PE of 31x where industry PE is 18x.
Reasons To Avoid: Promoters stake has decreased and company has delivered a poor growth of 1.04% in last five years. Promoters have pledged more than 91% of their holdings.
Drivers: Jindal Stainless is reportedly planning to establish an incubation center for agriculture technology (agri-tech) startups. The company will set up the same in collaboration with the Japanese company Future Venture Capital Company. In the year of flat earnings, adding cost in incubation center can add debt to the company.
Financial: After the disastrous performance of FY16, company has managed to deliver with positive earnings in FY17. Q1FY18 was flat as earnings were nearly zero as compared to negative earnings of same quarter last fiscal.

Reliance Nippon Share Market Tip: Avoid

Valuation: Overvalued stock with PE of 36x.
Reasons to Avoid: Future revenue and profit are largely dependent on the growth, value and composition of AUM of schemes. Dependency on third-party distribution channels and other investment products.
Drivers: Comprehensive suite of products with distinguished investment track record. The company is focused on inorganic growth through strategic acquisition.
Financial: Results were flat in FY17 as compared to FY16. Last quarter was significantly stable but growth was on the poised side.
Comment: You may get good value at the time of listing.

SREI Share Market Tip: Avoid

Valuation: Overvalued stock with PE of 60x.
Reasons to Avoid: Numbers are uncertain for the company. Analyzing last five years data, the sector was on growing side. Even though, the company delivered without any particular trend.
Drivers: Lack of operational efficiency hit the market share of the company in last few years. The company delivered significantly stable growth but as far as closed peers are concerned, growth looks lagging.
Financial: Operating income increased in FY17 as compared to FY16. But analyzing earlier years, again we can see some instability. Digging more on Q-o-Q basis, uncertainty increases.
Comment: You can get good value at the time of listing.

Share Market Tips For 3rd Week Of October 2017

National Aluminum Company Ltd. (NSE: NALCO) Share Market tips: Can be considered

Valuation: Fairly valued with trailing PE of 25.14x as compare to peers.
Reasons to Consider: The company has highest dividend payout ratio of around 65% amongst other PSU companies. The company showing sales growth since last two years on account of an uptick in volume and value of aluminum. It is also showing improvement in operating margin since last two years.
Drivers: Global demand for aluminum is surging which results in increase in price of Aluminum. The company is positioned well with healthy mining capacity and the majority of market share, to get the benefit of the global scenario.
Financial: Net sales stood at Rs.7543 crores in FY17 vs Rs.6817 crores in FY16. Operating profit stood at Rs 1040 crores in FY17 vs Rs.959 crores in FY16. The company registered PAT of Rs.667 crores in FY17.

Flexituff International (NSE: FLRXITUFF) Share Market Tip: Avoid

Valuation: Undervalued stock with trailing PE of 16.14x as compare to closed peers.
Reasons to Avoid: The company's promoters have pledged 81.26% of their holdings. The company is sitting on high debt with debt to equity ratio of 1.99x.
Drivers: High debt of the company is eating out bottom line also pledged share percentage is much higher which does not give a long-term clear picture about the company.
Financials: The company posted net sales of Rs.1,467 crores in FY17 vs Rs.1,325 crores in FY16. EBITDA margin stood at 12.59% in FY17 while PAT margin stood at 0.39% in FY17 which is very low.

Intrasoft Technologies (NSE: PRAKASH) Share Market Tip: Avoid

Valuation: Overvalued stock with trailing PE of 48.68x as compare to closed peers.
Reasons to Avoid: The company posted negative sales growth in last two years. Its receivable has increased to 204 days in FY17 which is very high more than two quarters.
Drivers: The company's business model based on E-commerce retailing and it is majorly in the USA. On account of this, higher receivables are eating out current cash flow of the company.
Financial : On consolidated basis, sales registered de-growth by 58% in FY17. PAT margin compressed to 33.5% in FY17 vs 142.8% in FY16. ROE and ROCE stood at 3.46%/ 4.07% in FY17 vs 41.4% / 42.6% in FY16.

Mahindra Lifespace Developer Ltd. (NSE: MAHLIFE) Share Market Tip: Avoid

Valuation: Overvalued stock with trailing PE of 23.54x as compared to peers.
Reasons to Avoid: The company is not able to maintain operational efficiency since last two years.
Drivers: The company possess a healthy portfolio of commercial plus housing projects at most of the tier l and tier 2 cities. As per data, growth in reality sector slows down since demonetization. Also, the company is not able to maintain healthy operating margin and sales growth since last two years.
Financial: Net sales stood at Rs 762 crores in FY17 vs Rs 1086 crores in FY15. Operating margin stood at 4.95% in FY17 vs 37.46% in FY16.

Share Market Tips For 2nd Week Of October 2017

Voltamp Transformers (NSE: VOLTAMP) Share Market tips: Can be considered

Valuation: Undervalued stock with trailing PE of 16.25x which is attractive as compared to peers.
Reasons to Consider: The company posted continuous sales growth in last three years. Also, it has improved operating margin in the same period. After the slowdown in transformer and distribution industry, now there is a turnaround on account of electrification wave. In such scenario, the company is sitting on cash of Rs.300 crore which is a positive sign.
Drivers: "Saubhagya Scheme" by the government to electrify every corner of the country by Dec FY18, fuels the growth of the company. Also, the stable operating performance and zero debt status of the company supports its growth trajectory.
Financials: Revenue stood at Rs.666 crores in FY17 vs Rs.488 crores in FY14 . EBITDA margin improved to 14.6% in FY17 vs 8.54% in FY14. PAT margin also improved to 10.2% in FY17 vs 5.38% in FY14. ROCE and ROE also jumped to 18.16% / 13.5% in FY17 vs 8.28% / 6.30% in FY14.

Prakash Industries (NSE: PRAKASH) Share Market tips: Can be considered

Valuation: Undervalued stock with PE of 15.85x which is significantly reasonable as compared to industry PE of 18.95x.
Reasons to Consider: Return ratios are on the stable side with good growth. Debt is flat for the company with better repayment on the Y-o-Y basis.
Drivers: Margins have improved two folds since last couple of years. Point of concern for the company is that promoters have pledged more than 60% of their holdings. Investors need to keep an eye on this.
Financial: Numbers are on the positive side for the company. Earnings have grown nearly three folds in FY17. Operating profit increased to double-digit this fiscal.

(Prakash Industries is one of Rakesh Jhunjhunwala's holdings. We at Niveza follow Rakesh Jhunjhunwala's investment philosophy but this should not be looked at as our stock recommendation. Please read our take on Rakesh Jhunjhunwala stock picks and how investors should perceive them - https://goo.gl/w1zwBV )

Adhunik Industries (NSE: ADHUNIKIND) Share Market Tip: Avoid

Valuation: Poor valued with PE of 88x.
Reasons to Avoid: As compared to industry peers, return ratios are low for the company. Market share is low as well and decreasing on Q-o-Q basis. Most of the times stock remain in the circuit as the volume is too low.
Drivers: Even after getting stability in the steel sector, the stock is travelling downward only while most of the closed peers are on the performing side. The company has delivered poor growth in last five years.
Financial: Revenue growth is continuously down with stable earning but operating margins are getting hammered with negative operating cash flows. Debt is on increasing side as well.

Nitin Fire Protection (NSE: NITINFIRE) Share Market Tip: Avoid

Valuation: Poor valuation with negative numbers.
Reasons to Avoid: Return ratios are on the negative side. Promoters have pledged more than 30% of their holdings. Contingent liabilities rose to Rs.224 crore. Promoter's stake is decreasing Q-o-Q basis.
Drivers: Looking at mutual funds data, few big players were on the selling side of the stock in last 6-8 months.
Financial: FY17 was considerably down for the company as earnings came down to the negative region even revenue has shown significant growth. Lack of operational efficiency dragged the numbers down.

Ruchi Infrastructure (NSE: RUCHINFRA) Share Market Tip: Avoid

Valuation: Poor valuation with negative numbers.
Reasons to Avoid: Return ratios are on the negative side. Assets are coming down on the Y-o-Y basis. Numbers are volatile and uncertain throughout. Margins have dried.
Drivers: Within the same segment, a lot of players are having strong fundamentals and market share of the company is low as well. It is getting difficult for the company to survive in the competition.
Financial: Earnings of the company are negative since last few years while debt is increasing significantly. Cash flows are uncertain as well.

Supreme Tex Mart Ltd (NSE: SUPREMETEX) Share Market Tip: Avoid

Valuation: Poor valuation with negative numbers.
Reasons to Avoid:Company is dealing with negative margins. The company is showing lack of efficiency as far as operations are concerned. Debt is increasing continuously where repayment has nearly dried up.
Drivers: On the industry level, peers are getting much stronger as compared to the company. Return ratios are on the troubled side. Operating cash is negative as well. It's difficult for a company to survive with such operations.
Financial: The last couple of years were in trouble for the company as numbers have come down dramatically. Start from revenue to net profit, negative growth has been seen. Cash profit is negative.

Share Market Tips For 1st Week Of October 2017

Vedanta (NSE: VEDL): Potential BUY

Valuation: Fairly valued at current level as compared to peers with trailing PE of 20.03x.
Reasons To Consider: On the global front, prices of basic metals like lead, aluminum, and zinc are surging due to the shortage of supply. Vedanta is well positioned to benefit from strong zinc and aluminum demand as Hindustan Zinc (HZL) and Bharat Aluminium Company (BALCO) are under its wing. Commodity side is looking for a safer bet considering current demand.
Drivers: Strong infrastructure growth in Indian economy, base metal supply shortage, the high market share of the company in the domestic market and global footprint along with strong balance sheet are acting as driving force for the company. On top of that, Industry valuation is already on the lower side.
Financial: Vedanta is a cash-rich company with free cash flow of Rs.13,312 crores. The company has reduced gross debt by Rs.4,115 crores in FY17 and has planned to reduce further by Rs.6,200 crores in FY18. The company registered net sales growth of 12.3% to Rs.72,225 crores. Also, it has witnessed growth in EBITDA margin to 39% vs 30% in FY16. The company also paid the highest ever dividend of Rs.7,099 crores in FY17.

Gammon India (NSE: GAMMONIND) Share Market Tip: Avoid

Valuation: Poor valuation as most of the part in financial statements is negative.
Reasons to Avoid: Promoters have pledged more than 90% of their holdings. The contingent liability is on the higher side. The company has delivered poor growth of -1.53% over past five years.
Drivers: Company has operations majorly in Asian and African countries. Global presence is low. The company is trying to penetrate in the US and Europe but competition is huge there and strict regulations may hamper entry of the company globally.
Financial: Y-o-Y basis, company is continuously delivering negative earnings. Cash flows are negative throughout. Debt is on the increasing side. Reserves and Surplus are negative. Margins are negative as well.

Reliance Communication (NSE: RCOM) Share Market Tip: Avoid

Valuation: Poor valuation with an unstable business model.
Reasons to Avoid: JIO has given a major hit to most of the telecom service providers. The company has already lost its market share and still with most attractive offers JIO is hammering other service providers too.
Drivers: Spectrum issues came into the picture again where Reliance Jio, Airtel and Idea are on the gaining side while Reliance Communication will be on paying side. This will add to the existing pile of debt of the company.
Financial: The company is already dealing with troubles with their Y-O-Y and Q-o-Q numbers. Also, profit margins are going down because of the heavyweight competitors.

Educomp Solutions (NSE: EDUCOMP) Share Market Tip: Avoid

Valuation: Poor valuation with unstable operational efficiency.
Reasons to Avoid: Promoters have pledged more than 85% of their holdings. The company has a negative return on equity since last few years. Contingent liabilities are increasing on the Y-o-Y basis.
Drivers: Working capital management looking down as current ratio and quick ratio both are going up on account of high accounts receivable. The company is facing stiff competition in the industry as it is impacting margins.
Financial: Company is posting negative earnings since last few years. Revenues have come down drastically. Cash flows are negative as well.

The Byke Hospitality (NSE: BYKE) Share Market Tip: Avoid

Valuation: Overvalued with trailing PE of 21.62x.
Reasons to Avoid: Operational efficiency of the company is coming under threat. The company registered degrowth in this quarter as compared to last year same quarter by a big margin.
Drivers: The company runs its business on the asset-light model which is experiencing tough competition from various online and other organised platforms available in the hotel industry. Debt is growing and repayment has been on the slower side.
Financial: In Q1FY18, net sales down by 51% Q-o-Q and 40% Y-o-Y. EBITDA down by 27% Q-o-Q.

Kilburn Engineering (NSE: KILBUNENGG) Share Market Tip: Avoid

Valuation: Undervalued stock as compared to peers. Currently trading at trailing PE of 15.60x.
Reasons to avoid: The company witnessed flat growth in topline in last three years and at the same time its margins were under pressure. The company has delivered poor growth in last few years.
Drivers: Recently company promoters raised stake in the company from 57% to 60% from the open market. As per company management, topline can remain flat for next one year.
Financial: Debt is on increasing side. In Q1FY18, net sales down by 40% Q-o-Q to Rs.30 crores. EBITDA down by 50% to Rs.2.66 crores. PAT down by 37% to Q-o-Q to Rs.1.11 crores. Margins came down drastically.

Share Market Tips For 5th Week Of September 2017


KEC International (NSE: KEC) Share Market tips: Can we consider?

Valuation: Fairly valued with trailing PE of 23.67x as compared to close peers
Reasons to consider: Government of India recently launched Saubhagya scheme which aims at Power for all across the country by December 2018. This scheme would be beneficial for the company as it is one of the prominent players in power transmission and distribution.
Drivers: The company is sitting on a heavy order book as of date worth approximately Rs.14,500 crores at domestic and international front. Also, the company gets most of the orders form Power Grid Corporation which helps in providing transmission lines to villages. Power Grid Corporation is also the beneficiary of Saubhagya scheme.
Financial: The company registered growth of 6% Y-o-Y in Q1FY18 in revenue. PAT rose by whopping 104% Y-o-Y to Rs 63 crores. EBITDA margin improved to 9.3% in Q1FY18 vs 8.4% in Q1FY17.

Lakshmi Energy (LAKSHMIEFL) Share Market Tip: Avoid

Valuation: Overvalued stock with negative numbers.
Reasons to Avoid: The company is having higher debt. The company is witnessing decreasing numbers in sales volume due to increase in competition.
Drivers: The company has registered degrowth in sales as of now with low operational efficiency. In last three years, the company has registered two times negative operating margins.
Financial: The company has a debt to equity ratio of 2.28x. It has negative earnings in the bottom line. Revenue growth is flat to negative.

Satin Creditcare Network (SATIN) Share Market Tip: Avoid

Valuation: Overvalued stock with negative numbers.
Reasons to Avoid: Demonetisation in the month of November 2016 has affected most of the businesses of the company. This directly affects its two-quarter numbers subsequently i.e. Q4FY17 and Q1FY18.
Drivers: Demonetisation has impacted 75% of the territories of the company. Which results in a delay in repayments coming in and has also impacted collection efficiency which the company is trying to improve.
Financial: The company registered negative earnings on account of higher operational expenses. PBT is down by 57% on yearly basis and PAT down by approximately 58%.

Axiscades Engineering Technologies (AXISCADES) Share Market Tip: Avoid

Valuation: Overvalued with trailing PE of 64.43x as compared to peers.
Reasons to Avoid: Operating profit of the company has got impacted due to higher project cost from the US from last one year, which in turn is eating out its net profit.
Driver: The company has a global presence in the aerospace engineering sector and one of the niche player. Company's project cost from the US is affecting its margins as per management which is yet to improve.
Financial: In Q1FY18, net sales down by 16% Y-o-Y to Rs 53 crores. EBITDA margin stood at 6.2% vs 16.93% in Q1FY17. PAT is negative.

The Byke Hospitality (BYKE) Share Market Tip: Avoid

Valuation: Overvalued with trailing PE of 21.62x.
Reasons to Avoid: The company registered degrowth in this quarter as compared to last year same quarter by a big margin.
Drivers: The company runs its business on the asset-light model which is experiencing tough competition from various online and another organised platform available in the hotel industry.
Financial: In Q1FY18, net sales down by 51% Q-o-Q and 40% Y-o-Y. EBITDA down by 27% Q-o-Q.

Share Market Tips For 4th Week Of September 2017

Deccan Cements (NSE: DECCANCE) Share Market tips: Can we consider

Valuation: Undervalued stock as compared to peers. Currently trading at trailing PE of 17.8x.
Reasons to consider: The company is undervalued as compared to close peers. The company has grown by 13.5% in last three years. It also has delivered the return on investment in the range of 15-20% from last two years. It is a low debt company with DE of 0.08x.
Drivers: Rising civil infrastructure and sound financial status of the company fuels its growth.
Financial: In Q1FY18, net sales grew by 14.6% Y-o-Y to Rs.160 crores. EBITDA grew by 4.7% YoY to Rs.24.54 crores. PAT stood at Rs.11.38 crores.

DLF (DLF) Share Market Tip: Avoid


Valuation: Overvalued stock as compared to peers. Currently trading at trailing PE of 56.33x.
Reasons to Avoid: The company is overvalued and underperforming as compared to closed peers.
Drivers: The company plans to launch project only after obtaining occupancy certificate which can result into weak earnings followed by negative cash flow.
Financials: In Q1FY18, net sales down by 8% Q-o-Q to Rs.2,048 crores. EBITDA stood at Rs.903 crores. PAT down by 23% to QoQ to Rs.121 crores.

A2Z Infra Engineering (A2ZINFRA) Share Market Tip: Avoid


Valuation: The company is overvalued with negative earnings.
Reasons to Avoid: The company posted negative margins and final profit. Also, promoters of the company have pledged 96% of their shares.
Drivers: The board of the company approved the issuance of 8 crore equity shares to lenders as a one-time settlement. The company belongs to power sector which is growing slowly as of now. It impacted company's earnings.
Financial: In Q1FY18, net sales down by 34% Q-o-Q to Rs.112 crores. EBITDA and PAT witnessed negative numbers.

Dish TV (DISHTV) Share Market Tip: Avoid

Valuation: Overvalued stock as compared to peers. The stock is currently trading at trailing PE of 143.86x.
Reason to Avoid: The company posted weak earnings and currently overvalued as compared to peers.
Drivers: The company is facing the challenge to sustain in the competitive environment which has slowed its growth.
Financial: In Q1FY18, net sales down by 14% Y-o-Y to Rs.442 crores. EBITDA down by 74% Y-o-Y to Rs.24.23 crores. PAT witnessed negative growth.

Kilburn Engineering (KILBUNENGG) Share Market Tip: Avoid


Valuation: Undervalued stock as compared to peers. Currently trading at trailing PE of 15.60x.
Reasons to Avoid: The company witnessed flat growth in topline in last three years and at the same time its margins were under pressure.
Drivers: Recently company promoters raised stake in the company from 57% to 60% from the open market. As per company management, topline can remain flat for next one year.
Financial: In Q1FY18, net sales down by 40% Q-o-Q to Rs.30 crores. EBITDA down by 50% to Rs.2.66 crores. PAT down by 37% to Q-o-Q to Rs.1.11 crores.

Share Market Tips For 3rd Week Of September 2017

NOCIL (NOCIL): Potential Buy


Valuation: Undervalued stock with PE of 12.75x.
Reasons to Consider: Stock is still undervalued and has great potential as far as valuation and business model is concerned. Optimum utilisation of new plant helped in enhancing earnings.
Drivers: Looking at the numbers, 60 65% of the global consumption of rubber is by automotive tyres, with the rest used in - footwear production, latex products, cycle tyres and tubes, and OTR tyres among others. It supplies all domestic tyre manufacturers in addition to several international tyre companies and has around 3,200 clients in the non-tyre segment.
Financial: In FY17 company had delivered strong growth in term of earnings whereas net income surged by 54%. Q1FY18 was remarkable too with a rise of 46% in the net earnings. The company has managed to reduce debt from Rs.150 crore in FY15 to Rs.19 crore in FY17.

Shivam Autotech (SHIVAMAUTO) Share Market Tip: Avoid


Valuation: Overvalued stock with unstable operational performance..
Reasons to Avoid: Lack of operational efficiency with increased competition hammered company's over performance. In order to survive in competitive market, company has cut down margins..
Drivers: Demand for the products like different types of gears, transmission shafts, cold and warm forged components are good enough but competition by small players is too good for the company to increase the profit margin. This has hit the companys profit margin in last few quarters..
Financial: Even after improved demand, company is posting negative earnings. The company failed to manage their expenses. Profit margins declined significantly. Good demand has been seen in last quarter.Cash flows are on the negative side as well.

Repro India (REPRO) Share Market Tip: Avoid


Valuation: Overvalued stock with PE of 123x.
Reasons to Avoid: Promoter's stake has decreased. Company has delivered a poor growth of -3.8% over last five years. Stock is trading 4 times its book value.
Drivers: Peer set is lower valued as compared to the company.
Financial: Company has delivered negative earnings in the last couple of years while cash flows are negative as well which points out lack of operational efficiency of the company. Falling profit margins with a negative return on equity.

JBM Auto (JBMA) Share Market Tip: Avoid

Valuation: Overvalued stock with PE of 37.44x.
Reasons to Avoid: Competitors have hit the market in numbers. Market share of the company came down last quarter.
Drivers: Strong demand has been seen for the products in which the company is dealing in. But small players have disturbed the market for the company by compromising with their margins and ultimately the company has to cut their margins in order to survive in the strong competitive market.
Financial: Company reported 61% fall in its earnings for the first quarter ended June, 2017. On Y-o-Y basis, the company has shown significant growth which ultimately reflected in the performance of the stock till date.

Emkay Global Finance (EMKAY) Share Market Tip: Avoid


Valuation: Overvalued stock with trailing PE of 92x where industry PE is 59x. Stock is trading nearly 6 times of its book value.
Reasons to Avoid: Financial numbers are not certain. Lot of uncertainty in operational performance of the company.
Financial: Earnings nearly declined by 50% in FY17. Q1FY18 was significantly better as the company managed to cut down expenses and it ultimately reflected in earnings. But considering last few quarters, performance is under the shadow of a doubt.

Asian Granito (ASIANTILES) Share Market Tip: Avoid

Valuation: Overvalued stock with PE of 40x which is way too high.
Reasons to Avoid: Return on net worth is continuously falling, in fact in FY17 was on the negative side. Business model is not clear and revenue realisation is doubtful too.
Financial: Revenue dropped by 5% nearly in FY17 while earning showed a dramatic fall of 31.62%. On Q-o-Q basis, earnings in last quarter declined by 31%.

Royal Orchid Hotel (ROHLTD) Share Market Tip: Avoid


Valuation: Overvalued stock with troubled operational performance of the company.
Reasons to Avoid: Earnings as well as revenue growth both are in the negative territory. The company has delivered poor growth of 0.23% over last five years. The company has a return on equity of -0.89 for last three years.
Financial: On Y-o-Y basis, company is posting negative growth as far as the revenue and earnings are concerned. Cash flows are negative too. The company lacks operational efficiency.

Jindal Stainless Ltd (JSL) Share Market Tip: Avoid


Valuation: Overvalued stock with trailing PE of 31x where industry PE is 18x.
Reasons to Avoid: Promoters stake has decreased and company has delivered a poor growth of 1.04% in last five years. Promoters have pledged more than 91% of their holdings.
Drivers: Jindal Stainless is reportedly planning to establish an incubation center for agriculture technology (agri-tech) startups. The company will set up the same in collaboration with the Japanese company Future Venture Capital Company. In the year of flat earnings, adding cost in incubation centre can add debt to the company.
Financial: After the disastrous performance of FY16, company managed to deliver in FY17 with positive earnings. Q1FY18 was flat as earnings were nearly zero as compared to negative earnings of the same quarter last fiscal.

Vardhman Holding (VHL) Share Market Tip: Avoid


Valuation: Undervalued stock with trailing PE of 6.39x as compared to close peers.
Reasons to Avoid: Low volume stock with uneven earning trend. In current quarter margins got contracted and earnings are down by 98% Q-o-Q.
Drivers: The company earns by investing into debt, equity and real estate asset which is in positive trend at present, still it is not reflecting in the companys earnings.
Financial: In Q1FY18, net sales down by whopping 98% to Rs.3.91 crores Q-o-Q. EBITDA down by 98% Q-o-Q and 56% Y-o-Y. PAT of the company also tanked by 98% Q-o-Q and 61% Y-o-Y to Rs.2.63 crores.

BHEL (BHEL) Share Market Tip: Avoid


Valuation: Overvalued stock with trailing PE of 65x as compared to close peers.
Reasons to Avoid: The power equipment manufacturing company BHEL has poor growth rate of -9% in last five years. Also, the power sector does not see much uptick in the near future.
Drivers: The company got order of the Bullet Train which is minuscule as compared to its revenue of ~Rs 30,000 crores. This opportunity can't give much material impact on business.
Financial: The company witnessed de-growth in its net sales in past five years i.e.Rs.48,117 crores in FY13 vs Rs.28,222 crores in FY17. EBITDA also stood at Rs.1,827 crores in FY17 vs Rs.10,511 crores in FY13. PAT of the company stood at Rs.496 crores vs Rs.6,615 crores in FY13.

Share Market Tips For 2nd Week Of September 2017

Vedanta (VEDL): Potential BUY


Valuation: Fairly valued at current level as compared to peers with trailing PE of 20.03x.
Reason To Consider: On the global front, prices of basic metals like lead, aluminum and zinc are surging due to the shortage of supply. Vedanta is well positioned to benefit from strong zinc and aluminium demand as Hindustan Zinc (HZL) and Bharat Aluminium Company (BALCO) are under its wing.
Drivers: Strong infrastructure growth in Indian economy, base metal supply shortage, the high market share of the company in the domestic market and global footprint along with strong balance sheet; are acting as driving force for the company.
Financial: Vedanta is cash-rich company with free cash flow of Rs.13,312 crores. The company has reduced gross debt by Rs.4,115 crores in FY17 and has planned to reduce further by Rs.6,200 crores in FY18. The company registered net sales growth of 12.3% to Rs.72,225 crores. Also, it has witnessed growth in EBITDA margin to 39% vs 30% in FY16. The company also paid the highest ever dividend of Rs.7,099 crores in FY17.

Dr. Reddy (DRREDDY) Share Market Tip: Avoid

Valuation: Overvalued as compared to peers. Currently valued at trailing PE of 30x.
Reason to Avoid: The US is the main territory for the company as ~50% revenue share is from the US. Currently, the company has a pending pipeline of ~90 approvals which can affect revenue from the US market. Also, currently company comes under cautious view as it might receive applicable approval for EU-GMP only if it passes CAPA test result.
Driver: US product portfolio, pending approval, pricing pressure, macro economic headwind and delay in EU-GMP are some of the issues driving the company's fundamentals.
Financial: In Q1FY18, net sales down by 6.7% QoQ to Rs.3,316 crores. EBITDA down by 45% QoQ to Rs.323 crores. PAT down by 83% to Rs.57 crores QoQ.

Godawari Power & Ispat Ltd (GPIL) Share Market Tip: Avoid

Valuation: Overvalued with negative earnings.
Reason To Avoid: The company is sitting on high debt and also promoters of the company have pledged 44.29% of their shares.
Driver: Slow power sector growth affecting companies earnings. Also, high debt cost is eating its net profit.
Financial: Net sales of the company down by 8.86% to Rs.1,804 crores. The company registered negative earnings in FY17 on account of higher finance cost.

Jaiprakash Associates (JPASSOCIAT) Share Market Tip: Avoid

Valuation: Overvalued with negative earnings.
Reason To Avoid: Jaiprakash Associates experiencing selling pressure across all its business segments. The company is sitting on high debt and is undergoing debt restructuring process.
Driver: The company is selling its assets to reduce its debt which is indirectly affecting earnings and enterprise value.
Financial: Gross revenue of the company stood at Rs.6,757 crores in FY17 vs Rs.9,306 crores in FY16. The company posted negative earning for FY17 on account of higher finance cost.

MEP Infrastructure Developers Ltd (MEP) Share Market Tip: Avoid

Valuation: Undervalued stock as compared to peers. Currently valued at trailing PE of 17.9x.
Reason To Avoid: The company is sitting on high debt and undergoing debt restructuring process which is eating its net profit.
Driver: Rising infrastructure growth does not support company's topline which registered de-growth since last three years.
Financial: Revenue down by 9.2% in FY17 to Rs.1,729 crores vs FY16. EBIT down by 14.7% to Rs.507 crores in FY17. PAT stood at Rs.109 crores after adding exception item of Rs.158 crores in FY17 vs PAT of (Rs.366) crores in FY16.

Praj Industries (PRAJIND) Share Market Tip: Avoid

Valuation: Overvalued stocks with PE of 32x, too high compared to closed peers.
Reason To Avoid: Peers are troubling the company with the profit margins. Small players are appearing in numbers and already have dented business significantly.
Drivers: Company is dealing with troubles as it was under IT scanner due to alleged income tax evasion which tarnished the image of the company. Operational cost hammered the margins of the company.
Financial: Q-o-Q was significantly down as earnings were near to 0. A dramatic change in revenue, nearly 30% decline. Y-o-Y results were down as well pointing troubles in operational efficiency of the company.

Global Vectra Helicorp (GLOBALVECT) Share Market Tip: Avoid

Valuation: Fairly valued stock with company specific troubles.
Reason To Avoid: Company is dealing with internal operational troubles.
Drivers: Delay in ONGC deal is adding worries to the engaged investors. New investors are waiting for the outcome of the deal in order to enter. As most of the area is under rain threat, this quarter is on a sluggish side.
Financial: Global Vectra Helicorp has registered 57 percent de-growth in its June quarter (Q1FY18) at Rs.90 lakh due to higher tax rate against profit of Rs.2.2 crores in Q1FY17. On Y-O-Y basis, cash flows are on the declining side with falling earnings and increasing debt. Profit margins have declined nearly 50%.

Torrent Pharma (TORNTPHARM) Share Market Tip: Avoid

Valuation: Overvalued stock with PE of 33x higher than industry PE of 31x.
Reason To Avoid: Increased USFDA scrutiny across the globe regarding cGMP issues, pricing pressure due to client consolidation in the US. The Brazilian market remained dicey due to political turmoil with frequent changes in regulations and pricing.
Drivers: US revenue declined by 37% Y-o-Y mainly due to the high base of gAbilify exclusivity in the US. On the domestic front, the impact of GST transactions is expected to remain for a couple of quarters.
Financial: Net profit fell 36% Y-o-Y mainly on account lower operational performance and higher taxation. Return ratios declined by nearly 50%.

Wockhardt (WOCKPHARMA) Share Market Tip: Avoid

Valuation: Overvalued stock with poor valuation and negative numbers.
Reason To Avoid: Company is breaking its support levels due to the poor operational efficiency of the company. The global business had a hit last year. Revenue visibility is uncertain.
Drivers: Global business is on declining side where the company is losing its market share year after year. Recently, the company received approval for ANDA injections but failed to gain momentum due to higher competition by close peers.
Financial: Company is posting negative earnings since last three-four years. Operating margins have declined.

Idea Cellular (IDEA) Share Market Tip: Avoid

Valuation: Overvalued stock dealing with major operational as well as margin troubles.
Reason To Avoid: On the monthly basis, the company is losing its subscriber base. In the month of July 2017, the company lost 2.3 million subscribers. Following to this, company's total customer base has decreased to Rs.19.39 crores. Data shows that the subscribers are opting to port to other networks. In the last couple of years, the company lost its market share more than 50%.
Drivers: Jio is the real threat for players like Idea Cellular. Every new scheme launch by Jio is troubling the company market share. Even after getting approval for the merger with Vodafone, Idea Cellular is losing it's ARPU. In order to match offers of peers, the company is compromising with its margins and it is ultimately reflecting in its financial health.
Financial: Debt is on increasing side with negative earnings. Return ratios are ultimately delivering negative results. FY17 was significantly down for the company.

Share Market Tips For 1st Week Of September 2017

NCC (NCC) Share Market Tip: Avoid


Valuation: Over valued stock with expensive valuation as compared to closed peers. The stock is trailing at PE of 121, which is too high.
Comment: Promoter's holding is just 19.56%. Promoters' have pledged more than 29% of their holdings. Contingent liabilities of the company have reached to Rs.1,673 crores.
Drivers: Standalone debt of the company has increased substantially to Rs.1794. The slowdown in execution and delay in payments had led to a significant rise in working capital for NCC in last few years.
Quarterly performance: Q1FY18 was significantly stable for the company as compared to last few quarters due to Nagpur metro project. But the company has to work on its execution pace in order to keep revenue visibility improving.
Annual performance: YOY performance of the company is going down since last couple of years. Cash flows are negative whereas de-growth in revenue as well as in earnings has been seen.

Marico (MARICO) Share Market Tip: Avoid


Valuation: Company is trailing near the higher end of PE. Little expensive stock.Comment: De-stocking already had hit the performance of the company during last quarter due to GST and it is expected to carry the same momentum in coming couple of quarters.
Drivers: Within the segments, few products like Saffola Oats and edible oil took a hit during last year on account of high competition and de-stocking due to GST has also hurt the company.
Quarterly performance: June quarter was down by 4.86% compared to the fiscal year. Earnings were also on the down side. VAHO segment's volume declined by 8% last quarter.
Annual performance: All over urban to rural, performance of the company looked weak as most of the segments showed de-growth and decreased market share as well. The Y-O-Y performance was below company's estimates and it is expected to carry the same momentum for next quarter.

India Cements (INDIACEM) Share Market Tip: Avoid


Valuation: Expensive at current levels as the stock is trailing near PE of 35 whereas return ratios are decreasing as well.
Comment: Promoters' holding is 28.21%. Promoters' have pledged 43.83% of their holdings. Low promoters' holding with pledged shares adds more risk for investors.
Drivers: Company's business is dependent on south regions, especially AP and Telangana. Last quarter development pace slowed down in both the states, which ultimately hampered the performance of the company. Adding to this, operations of few plants were on hold due to the government circular on increased pollution and violation of norms.
Annual performance: Cash flows were near to zero levels. Net profit was on the declining side as well.

Voltas (VOLTAS) Share Market Tip: Avoid


Valuation: Over valued stock with PE on the higher end of the average, i.e. 32.
Comment: Promoters' holding is 30% only. AC segment is giving threats to hit profit margins due to intensified competition. Inventory de-stocking is affecting the profitability. The company has a weak share in industry convergence towards inverter ACs.
Macro Drivers: Instability in Qatar region hitting the company's account books hard as Qatar accounts nearly 50% of the international order book.
Drivers: Voltas is willing to lose the market share rather than compromising on margins. Demand usually stands muted during the 2nd quarter of the financial year.
Quarterly performance: Even after better revenue growth, the company posted negative earning in Q1FY18. Geographical performance of the company was on declining side.

JSW Steel (JSWSTEEL) Share Market Tip: Avoid


Valuation: Expensive stock as compared to peers.
Comment: Promoters' have pledged more than 45% of their holdings.
Drivers: Consolidated net debt increased steeply due to IND-AS impact and increase in working capital.
Quarterly performance: Q1FY18 quarter was significantly down. Revenue de-growth has been shown by the company while net profit is hit nearly by 50%.

Ujjivan Financial Services (UJJIVAN) Share Market Tip: Avoid


Valuation: Over valued stock with PE 71. Closed peers are much better valued.
Comment:The company took a major hit post-demonetisation and it is not yet looking comfortable with their ongoing operations.
Drivers: Recently CDC group sales stake in Ujjivan Financial Services for over Rs.212 crores.
Quarterly performance: Q1FY18 performance was on poor side as expenses surged way above revenue. Due to higher expenses, net profit of the company came down sharply.

Axis Bank (AXISBANK) Share Market Tip: Avoid


Valuation: Over valued stock with expensive valuation as compared to closed peers. The stock is trailing at PE of 35, which is too high.
Comment: Slippages by 3.5% in Q1FY18. The doubtful watch list of the loan book. Rise in GNPA at 5.5% as compared to last three years.
Drivers: Net Interest Income growth reduced to 7.5% in FY17. Axis Bank's exposure limits to 8 accounts out of 12 accounts named by banking regulator which creates dark clouds around its asset quality.
Annual performance: GNPA stood at 5.5x. NNPA stood at 2.3x. The rise in GNPA and NNPA questions the asset quality of the company. PAT showed de-growth of 5.3% to Rs.36792 mn.

Jet Airways (JETAIRWAYS) Share Market Tip: Avoid


Valuation: Fairly valued stock with trailing PE of 16.8x as compared to peers.
Comment: The company is having high debt with negative net worth (DE -3.31x). Margins of the company got impacted by higher aviation turbine fuel prices. The company is experiencing rising competition from domestic carriers.
Annual performance: Sales are flat at Rs.21,552 crores. EBITDA down by 50% to Rs.1,151 crores. PAT down by 66.73% to Rs.390 crores. EBITDA margin stood at 5.7% in FY17 vs 10.5% in FY16. PAT margin stood at 1.9% in FY17 vs 5.4% in FY16.

Tata Consultancy Services (TCS) Share Market Tip: Avoid


Valuation: Over valued stock with expensive valuation as compared to closed peers. The stock is trailing at PE of 18.01x.
Comment: Industry headwinds, rupee appreciation and slow down in IT spending is not in favour of the company.
Company Driver: TCS's growth momentum slowed down to ~9% in FY17 as compared to 15% in FY16 on account of industry headwinds.
Quarterly performance: Net sales flat at Rs.29,584 crores. EBITDA down by 8.84% QoQ/5.41% YoY to Rs.7,413 crores. PAT down by 10.15% QoQ/ 5.82% YoY to Rs.5,950 crores.

Share Market Tips For 4th Week Of August 2017

Infosys Ltd. (INFY) Share Market Tip: Avoid


Valuation: Undervalued (Fair Price: Rs.846, Current Price: Rs.915).
Reasons to Avoid: Infosys is undervalued as compared to closed peers but as of now this is a high risk stock.
Macro Drivers: Recent data indicated lack of spending by clients in BFS and Retail verticals. US immigration law is adding threat. Limited market dependency as 80% of company revenue constitutes from North America and Europe.
Drivers:: Now CEO and MD of Infosys Mr.Vishal Sikka resigned.
Quarterly performance: IT giant Infy is posting flat results continuously. During last quarter, margins were impacted by 0.5% on account of INR appreciation and higher variable pay to its employees by 8% to 14%.
Annual performance: Cash flows were negative for FY18 and earnings are moving down as well. More troubles are getting added day after day. Better to avoid as of now.

Apollo Hospitals (APOLLOHOSP) Share Market Tip: Avoid


Valuation: Overvalued (Fair Price: Rs.895, Current Price: Rs.1076)
Quarterly performance<: Even after posting better results, Apollo Hospitals is in down trend. Stock is trailing at PE of 61.
Drivers:: Promoter's have pledged more than 65% of their holdings, a real threat.Annual performance: YoY results are continuously down and QoQ is not stable as well. Even after having good expansion plans, revenue visibility is a little blur. Increasing debt with falling profit margins. Margins are under pressure due to regulation on 'stent' pricing and higher guarantee fees to the doctors.

Tata Motors (TATAMOTORS) Share Market Tip: Avoid


Valuation: Undervalued (Fair Price: Rs.343, Current Price: Rs.383)
Annual performance: Since last couple of years, cash flows of the company were negative. Margins had a hit during last year as production in UK plant was stopped. The stock is in downtrend continuously.
Drivers:: Company already has loosed commercial vehicle market share from 60% to 44%, which is a huge fall indeed. The primary reason for ballooned loss for last year was mismanagement with regards to the inventory of Bharat stage III vehicles that were rendered useless by the Supreme court judgement. Better to stay away from this falling knife. Huge investment in JLR can reduce company to a cashless position as JLR segment is continuously under-performing.

Bank of Baroda (BANKBARODA) Share Market Tip: Avoid


Valuation: Expensive (Fair Price: Rs.126, Current Price: Rs.143)
Annual performance: Bank of Baroda is already troubled with NPAs and NIMs rise. Management is expecting NIMs to find some stability in coming quarters.
Quarterly performance: Last quarter Bank had a disadvantage of couple of very large corporate accounts slipping through Rs.1,800 crores of slippage. This will milk rise in NPAs in coming quarters. Peer set is looking much stable where one can bet on

Punjab National Bank (PNB) Share Market Tip: Avoid


Valuation: High risk (Fair Price: Rs.124, Current Price: Rs.143)
Quarterly performance: In Q1, NIIs rose by 4%. Bank is having contingent liabilities of nearly Rs.3,58,610.5 crores.
Annual performance: Return on equity of the bank is 0.62% for last 3 years. Technical trend is down as well. NPAs are on increasing side. NPAs could rise in coming quarters which could clearly trend the stock downside. Hardly any upside could be there as far as next few quarters are concerned.

Religare Enterprises Limited (RELIGARE) Share Market Tip: Avoid


Valuation: Overvalued (Fair Price: Rs.43, Current Price: Rs.58)
Fundamental Performance: Return on Equity for last few years is on poor side, nearly 0.35% only, which is too low as compared to closed peers. Profit margins are falling while debt is on increasing side. Too much risk is involved.
Drivers:: Promoter's have pledged more than 85% of their holdings. Recently company suffered a cyber attack as well. Promoter's stake is on decreasing side.

Housing Development & Infrastructure (HDIL) Share Market Tip: Avoid


Valuation: Overvalued (Fair Price: Rs.55, Current Price: Rs.61)
Annual performance: Company has delivered poor growth of -8% over last five years. Contingent liabilities touched Rs.1,785 crores last year. As compared to closed peers, PE ratio of the company is too high.
Fundamental Performance: Cash flows of the company are negative with continuously falling earnings. Return on equity for last three years is around 2.15% which is significantly lesser as compared to closed peers.

Bharat Heavy Electricals Ltd. (BHEL) Share Market Tip: Avoid


Valuation: Overvalued (Fair Price: Rs.110, Current Price: Rs.127)
Annual performance: Continuously falling revenue since last four years with increasing debt.
Fundamental Performance: Company has low return on equity of 4.13% for last three years. PE is comparatively too high and investment in the stock looks little risky this time. The company has delivered poor growth of -9.22% over past five years. Return ratios are negative.

 

ABOUT AUTHOR

Niveza Research Desk : We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells everyday to a pave a smooth road for our clients in the shaky world of stock market. While tracking the mood swings of the market we bring our clients the most rewarding deals.

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