J Street Vol 295
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Market View
Focus On International Events & Clarity On P-Notes Route To Invest In India
The minutes of Fed meeting in the month of April was released before two days and as usu
members of the committee have expressed their opinion to up the rates in the month of June me
the flow of data justifies the same. On back of this, the dollar gained the strength and a conse
built that at least one or two rate hikes will be delivered by Fed in this calendar year. There are
data flow from the Europe, Japan, China and US which do not suggest any meaningful ec
recovery and points to uncertainty and ranged bound market. Unprecedented stimulus programs
central banks of the world did not yield expected results and many economic experts believe
present situation is a lull before a storm.
Locally, much awaited changes in the international treaties have taken place and the concern
expressed about the future of P-Notes. On Thursday evening, The SEBI board in its meeting de
make significant changes in the regulations governing P-Note issuances in line with the
amendments in international treaty with Mauritius and the recommendations made by SIT for
suggest issues related with black money. Now the question arises that how much impact this c
relating to P-Notes will have on the market. The current data and preparedness by the big FIIs s
that there will be a minimum or no impact on the market due to new regulations about P-Notes
last many months, there is a discussion amongst The Government, FIIs, SEBI and FPIs that The
Government wants clarity for the identity of ultimate P-Note holder. From January 15th onwa
investment through P-Notes is decreasing continuously.
From the pick of 50% of the total investment by FPI in India, today the P-Notes represent only
the total investment which stands at 2.23 lakh crore in absolute terms. Against this nearly 29
FPIs (Foreign Portfolio Investors) have registered with SEBI in 2015-16. While in 2014-15, 144
have registered with SEBI. So there is a tendency to shift from P-Notes to direct route re
registration with SEBI. Those investors who do not want to show their identity will not have p
invest in India. The Government has consulted big P-Note issuers like Morgan Stanley, Goldman
JP Morgan and Credit Suisse before finalizing the P-Note changes. As per their opinion the depe
on the P-Notes to invest in India will go down further from 10% at current level as the issuers
compelled to have very robust compliance system in place. The application of Domestic Anti
Laundering Laws to all ODI issuers will definitely discourage the issuers of P-Notes. It is certain
exposure through P-Notes will reduce going forward but the certainty and clarity will encourage in
to come through proper registration and transparency as the data of FPI do suggest. Technica
market has a strong support at 7550-7650 range but the global events will be important to watch
actions in the market in near term.
K a m a l J h a v e r i
M D - J h a v e r i S e c u r i t i e s
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Company Basics
E Code 538268
E Symbol WONDERLA
UITY ( in Cr.) 56.50
T.CAP ( in Cr.) 2250.14
Financial Basics
FV ( ) 10.00
EPS ( ) TTM) 10.41
P/E (x) (TTM) 38.26
P/BV (x) (TTM) 5.68
BETA 0.6705
RONW (%) 20.00
Share Holding Pattern
Holder’s Name % Holdin
Foreign 12.38
Institutions 4.38
Promoters 70.99
Non. Promoters 0.00
Public & Others 9.01
Govt Holding 3.25
uation : WONDERLA is trading at 403 . We recommen d “Accumulate” with target price of 498 ,
16.62.The stock currently trades at 32.47x of FY 16E, 27.93xof FY17E and 22.98x of FY
mpany Update : Wonderla Holidays Ltd.
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eekly Market Recap :
arket Eye Week ahead :
Debt to Equity Ratio
The debt-to-equity ratio (debt/equity ratio, D/E) is a financial ratio indicating the relative proportion of entity's equity and debtnance an entity's assets. This ratio is also known as financial leverage.
Optimal debt-to-equity ratio is considered to be about 1, i.e. liabilities = equity, but the ratio is very industry specific beepends on the proportion of current and non-current assets. The more non-current the assets (as in the capital-intensive ind
he more equity is required to finance these long term investments.
round The World
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owledge Corner :
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utual Fund Corner
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Source : - www.valueresearchonlin
nd Name
heme Name Kotak Emerging Equity Scheme Regular Plan
C Kotak Mahindra Asset Management Company Ltd
e Small Cap
egory Open-ended and Equity
nch Date March 2007
nd Manager Pankaj Tibrewal
Assets
Rs. 817.5 crore as on Mar 31, 2016
Top 10 Sector Break-Ups
Sector Weights Fund
Financial 17
Engineering 13
Cons Durable 10
Chem ica ls 9.
Services 9.
Construction 6.
Healthcare 6.
Textiles 4.
Techno logy 4.
Metals 3.
Composition (%)
Equity 95
Debt 4.
Cash 0.
Risk Analysis
Volatility Measures
Standard Deviation 19
Sharpe Ratio 1
Beta 1
R-Squared 0
Alpha 15
tory 2013 2014 2015 2016
(Rs) 13.14 24.61 26.68 26.41
l Return (%) -5.07 87.32 8.42 -1.02
Nifty 50 -11.83 55.93 12.48 0.20
S&P BSE Mid Small
Index -0.42 32.95 0.38 3.12
k (Fund/Category) 29/32 17/50 25/41 8/36
e e k H i g h ( R s ) 14.22 24.61 27.86 -
Week Low (Rs) 9.78 12.31 24.35 -
Assets (Rs.Cr) 69.33 274.15 792.54 776.16
ense Ratio (%) 2.79 2.89 2.71 -
Fund StyleInvestment StyleGrowth Blend Value
Large
Medi
Sma
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nd Performance v/s S&P CNX Nifty
FundCNX Nify
based to 10,000)
http://www.valueresearchonline.com/
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mmodity Corner
USD/INR
6-
rex Corner
EUR/INR
GBP/INR
JPY/INR
rket Eye Week ahead :
USDINR ended the past session with hanging man candlestick after a bull candle. This indicates for soracement of the recent gains and the same can be used to initiate long positions.
Daily MACD and RSI which has recently entered the positive zone is supporting the view. The daily chaport comes at 67.00 levels and target on upside remains 68.40.
Level S2 S1 CP R1 R2 High Low Cl
SD/INR
Level S2 S1 CP R1 R2 High Low Cl
PY/INR
Level S2 S1 CP R1 R2 High Low Cl
BP/INR
Level S2 S1 CP R1 R2 High Low Cl
UR/INR
rket Recap :
The USD has been strengthened last week
against high beta commodity currencies and the
Yen, as energy prices touch 6-month
highs.US dollar index is trading above the 95.00
mark, surged after the FOMC April meeting min-
utes were reported.
The report presented a hawkish tone whereinhe US FED has remained confident about the
mproving economic conditions domestically.
Odds for a rate hike in June have gone up after
he statement and making the Rupee
depreciated in last week from 67.02 to 67.56.
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Nifty las t week opened at 7831.20, attained a high at 7940.10 and fell to a low of 7735.75. Nifty finallythe week at 7749.70 thereby showed a net fall of 65 points on week to week basis. We had said last week that ong and holding the same can maintain the stop loss at 7678. Use rise from 7814-7992 to exit long and take pr
Re-enter long on close above 7992. The view for current week is also same. The ADX is below 20 on daily chartshow markets will be range bound in near term. Expect further correction on fall and close below 7678. If thpens then expect 7577-7516 to be tested.
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treet Recommendations Report Card
Top Fundamental Stocks
Stocks Rec. Date CMP on Rec. CMP Target
AbsoluteReturn @
CMPSta
Jamna Auto 22/02/2016 133 148 181 11% B
MT Educare 1/2/2016 164 177 230 8% B
rware-Wall Ropes 28/12/2015 425 334 550 -21% B
AYM Syntax 23/11/2015 121 107 223 -12% B
Natco Pharma 2/11/2015 509 452 636 -11% B
SRF 21/09/2015 1140 1200 1374 5% B
luwalia contracts 24/08/2015 235 271 368 15% B
finite Computer
Sol.20/07/2015 190 213 255 12% B
bika Cotton Mills 18/05/2015 880 857 1149 -3% B
Sadbhav
ngineering Ltd.4/5/2015 298 260 430 -13% B
mkar speciality
Chemicals16/03/2015 152 177 251 16% B
DHFL 16/02/2015 252 187 368 -26% Accum
V Today Network 27/01/2015 222 321 337 45% B
M&M 12/1/2015 1238 1294 1452 5% B
Havells India 27/10/2014 274 364 346 33% B
TC India Fin. Ser. 7/7/2014 39 36 45 -8% B
Adani Port 5/7/2014 280 177 347 -37% Accum
ld-Tek Packaging 4/4/2016 138 158 179 14% B
onderla Holidays 25/04/2016 387 398 498 3% Accum
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treet Short Term Call Status
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treet Short Term Call Status
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One call on daily basis is given keeping view of short term trading on closing basis.Time frame and expected % of return is also mentioned with the suggested call.
This call are purely given on technical trading system generated by the Technical Research Desk.Generally Expected Return on investment is 5-6 % with time horizon of 6-7 days.Profit Booking update is considered if on an average expected return exceed 3.50-4.00 % against Expected return of 5-6%Risk- Reward ratio percentage wise depends on the volatility of stock Normally it stands ( 3 : 9)
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