The Stock for "NO LOSS NOVEMBER"- "Dr. Reddy's Laboratories "

Dr. Reddy's Laboratories is an Indian multinational pharmaceutical company based in Hyderabad and Telangana.The Company was established by Anji Reddy the company has over 190 medications, 60 active pharmaceutical ingredients (APIs) for drug manufacture, diagnostic kits, critical care, and biotechnology products. The Company produce in three segments: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Proprietary Products. The company's manufactures and markets a wide range of pharmaceuticals in India and overseas.Dr. Reddy’s had six FDA plants producing active pharmaceutical ingredients in India and seven FDA certified plants making patient ready medications five of them in India and two in the UK. 
Company’s Products 
Therapeutic Focus: 

  • Therapeutic Focus banner Understanding patient and partner needs deeply and then developing products. 
  • Oncology: Cancer is a disease that requires specialized treatment and care at every stage. 
  • Cardiovascular: Dr Reddy’s has developed a wide and varied portfolio of anti-hypertensive medicines to bring good health to the millions affected by this condition. 
  • Anti-Diabetic: Dr. Reddy’s has established products like Metformin, Glimepiride, and Glicazide to ensure good health to diabetics. 
  • Dr. Reddy's Laboratories bought the established brands of Belgian drug maker UCB SA in South Asia for 8 billion rupees ($128.38 million) 
  • Dr. Reddy's Laboratories announces the launch of sevelamer carbonate tablets in the U.S. market. 
  • The District Court of United States has delivered judgment in favor of Dr Reddy’s Laboratories ruling that the proposed generic version of Suboxone (buprenorphine and naloxone) sublingual film does not infringe US patent as asserted by Indivior 
  • Dr. Reddy's Lab signed a licensing pact with XenoPort for their experimental treatment to treat plaque psoriasis 

Fundamental Analysis 
Dr Reddys Laboratories Ltd is an integrated global pharmaceutical company. The company has market capitalization of 39734.72 crore and turnover of 9719.80.The company offers a portfolio of products and services including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars, differentiated formulations and News Chemical Entities (NCEs) through their three businesses - Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products. Their major markets include India, USA, Russia and CIS, Germany, UK, Venezuela, S. Africa, Romania, and New Zealand. 

  • The stocks pe ratio is 32.95 and the industry pe ratio is 38.15 which shoes that the stock is undervalued 
  • The company is maintaining healthy dividend payout of 17.60%. 
  • The stock’s pe is also low compared to its peers like cadila health care, primal enterprises. 
  • Company is going to declare its quarterly results on 31st oct which is expected to be positive in terms of increase in PAT and net sales. 
  • The company’s other operating income is increasing yoy basis from 97.50 Crocr to 115 Crore 

Technical Analysis 
The stock recovered from its monthly support level of 1900, it has touched this low in August 2017. Since then the stock recovered nearly 25 percent. The stock is in tight consolidation range since last 4 to 5 weeks forming a pennant pattern. If we draw a Fibonnaci Retracement from the Monthly low 386 made in February 2009 to the all-time of 4386 it is observed that it has recovered from 61.8% of this swing. A strong break out of consolidation range is expected this month with high volume. 

  • Break out of the Pennant pattern is confirmed above 2430 
  • 100 day EMA also formed and strong resistance near 2430 on daily chart and hence break out above this resistance is expected to be powerful 
  • It may face a resistance of weekly trend line drawn from its life-time highs, the resistance would be aroun 2550 
  • RSI on Weekly chart also near 50 and if moves above it will confirms the break out 
  • 2240 is the key support and should not be breached, further 1900 is the 2nd key support 
Go for buy above 2435 levels in cash and if you trade in futures than buy above 2444 only. A target of 2600 to 2800 is expected till the expiry of the November contract, maintain stop loss below 2270 


Supports and Resistance (Monthly) 

  • Resistance 1- 2475 Support 1- 2270 
  • Resistance 2- 2630 Support 2- 2175 
  • Resistance 3- 2820 Support 3- 1900

The Stock for "NO LOSS NOVEMBER"- "WELSPUN CORP LTD"

Welspun Corp Ltd is the second largest manufacturer of large diameter pipes in the world based in Mumbai, Maharashtra. It is a flagship company of the $3 billion (₹129 billion) Welspun Group. The US$ 3.5 billion Welspun Group is one of India’s fastest growing conglomerates having registered a CAGR of 30% over the last decade. It conduct a 1.65 mtpa plant in Anjar, Gujarat which is being increased to 2.1 mtpa .This company’s pipe and coating facility is spread across 740 acres and has an annual capacity of 350,000 tons. The company has five business are Pipes, Plates & Coils; Home Textiles; Steel; Infrastructure; and Energy. In the first two is verticals. 
Technical Chart


The company Best in - HFW (High Frequency Welded), ERW (Electric Resistance Welded), HSAW (Horizontal Submerged Arc Welded), LSAW (Longitudinal Submerged Arc Welded), Plates & Coils, Bends and a portfolio of Coatings for the most critical applications. 
  • Some company's projects in recent times include large off shore and on shore projects which have an American multinational energy corporation, American natural gas and crude oil Pipeline Company and an Indian conglomerate holding company. 
  • The company Bestowed By FICCI and Nace International for FICCI Quality Systems Excellence Award for Manufacturing and Nace International Corrosion Awareness Award in 2014 
  • In the Line Pipe sector Welspun has to its credit some of the most famed projects including the world’s deepest pipeline project in the Gulf of Mexico, U.S.A, heaviest pipeline project in the Persian Gulf, highest LNG pipeline project in Peru and longest pipeline project from Canada to the US 
  • The company submitted a proposal to Madhya Pradesh State Industrial Development Corporation to reestablishment the Dewas Industrial Water Supply Project under the Madhya Pradesh Infrastructure Development. 
  • Some company's pipe client Abu Dhabi Gas Industries (GASCO), Anadarko Petroleum Corp USA, Bharat Petroleum Corporation Limited etc. 
Fundamental Analysis 

Welspun corp has a market capitalization of 3886.89 crore and turnover of 4482.56 crore.The company has a strong foothold in more than 50 Countries, employs over 24,000 people and has as many as 100,000+ shareholders. The company has reduced net debt by approximately 2,500 millionover the year.The company is prepared to meet the growing demand and is in a position to meet the stringent requirements and standards of high-grade line pipes. It plans to increase the capacity of its pipe plant by 75% to 1.75 million tons to meet growing demand for oil pipelines. 
  • The stock has Price to Earnings ratio of 14.51 and its Industry P/E is 23.76. It shows it is an undervalued stock in its industry 
  • It’s Price to Book value is 2.15 also not very high. And EPS (Earning per share is also fair at 10.10 
  • The company’s 2nd quarter result is expected to declared on 30 October and Financial analysts expects a positive result 
  • It stands at number 3 among its competitors Jindal Saw, APL Apollow and Maharastra Seamless 
  • The company has reduced its debts. 
Fundamentals
Market cap
3886.89 cr.
Face value
Rs. 5
Book value
Rs. 107.86
EPS
Rs. 10.10
52 Week H/L
Rs. 146/55.05
Listed at
NSE/BSE
P/E Ratio
14.51
Industry P/E
23.76
The Welspon Corp gains nearly 75% from the last one year. The stock is very strong on technical charts. It was in a tight consolidation range from one month and on Friday 27 October it gave break out above resistance level of 146 and also sustains above this resistance level. If we draw a trend line on daily chart from the low of 24 May 2017 then it also supports the uptrend. On Weekly chart the stock formed a Rounding Bottom pattern and a strong break out is expected in the next week. 
  • The break out of Rounding bottom pattern is expected above 157
  • Earlier in December 2010 and January 2011. 145-148 was the potential reversal zone 
  • In February 2012 and August 2010 the stock fell down from nearly 150 level and so If it breaks above these levels a strong bull rally is expected 
  • 21 day EMA works as a strong support and stock is likely to bounce back if it fell down on 21 day EMa 
  • 130 is the strong support level and should be hold buy the stock in orderto continue strong up trend. 
  • Buy Welspun Corp above 149 is recommended and watch for the break out above 157, if it breaks then add more shares and wait for the target of 172-188, It may achieve till the end of the next month  
Supports and Resistance (Monthly) 
  • Resistance 1- 157 Supports 1- 130 
  • Resistance 2- 172 Supports 2- 118 
  • Resistance 3- 192 Supports 3- 107

"No Loss in November Stock"-- Torrent Power

Torrent Power is one of the leading company in the Indian power sector, promoted by the Rs. 18,500 crore+ Torrent Group. It is an integrated power utility and is one of the largest private sector players in India having interests in power generation, transmission, distribution and manufacturing and supply of power cables. The company has under-construction wind power plants aggregating to 338 MW. The gas based plants of the Company possess greater environmental value. Its current operations are in the states of Gujarat and Maharashtra and Uttar Pradesh. 

  • The India’s oldest utilities – The Surat Electricity Company Ltd and The Ahmedabad Electricity Company Torrent turned them into first rate power utilities in terms of operational efficiencies and reliability of power supply. 
  • The Company distributes power to over 3 million customers annually in its distribution areas of Ahmedabad, Gandhinagar, Surat and Dahej SEZ (Gujarat), in Bhiwandi (Maharashtra) and in Agra (Uttar Pradesh). 
  • The Cables Unit manufactures Power Control Cables and is one of the market leaders in HT Power Cable segment with a capability of up to 132 kV XLPE Cables. 
  • The company is developing their brown field project, the 382.5 MW gas based combined cycle power plant adjacent to the existing sugen plant, for which the EPC Contract has been awarded to Siemens. 

Fundamental Analysis 

Torrent Power Ltd is one of the leading brands in the Indian power sector. The company is engaged in generation, transmission and distribution of power. The company has a generation capacity of 1647.5 MW and distributes power to more than 3 million customers annually in Ahmedabad, Gandhinagar, Surat, Bhiwandi and Agra. The company has market capitalization of 12993.47 crore.The company is implementing a 1200 megawatt gas based power project at Dahej in South Gujarat. The project, called the DGEN Power Project, is being implemented in a phased manner starting with a 400 megawatt first phase. The company is also in the process of expanding the capacity of its SUGEN plant near Surat. 

  • Company has been maintaining a healthy dividend payout of 18.95% 
  • Company’s sales has increased in last quarter from 2440.80 to 3047.23 crore. 
  • Operation profit has been increased from 686.30 to 783.55 crore in last quarter. 
  • Net profit of the company increased from 134.52 to 197.90 crore. 
  • Company’s compounded profit growth in 3 years is 67.57%. 

Technical Analysis 

Torrent Power shows multiple technical signals to buy for the next month. It recovered from the support of strong trend line drawn from the lows of August 2014, June 2015, November 2016 and June 2017. It gained nearly 100 points or nearly 60 percent from 175 to 278 since the last week of June 2017. In the last week it has given strong break out of resistance level on weekly chart 
  • The stock has formed long-term double bottom pattern on weekly chart, the target of the pattern is 320 
  • It also breaks last 10 weeks volume highs and that confirms the break out 
  • ADX also signals start of an uptrend with crossover 
  • 273 was the earlier monthly resistance but the stock breached that and made a high of 277.95 
  • The stock closed near 270 and strong buying is expected above 273 
  • The Lot size for torrent power in derivatives is 6000 and stock may turn a jackpot for derivative traders so it is highly recommend for futures contract 

Buy Torrent Power November futures above 276 target 295-310 Stop loss below 255 holding period till Expiry of the contract 
Supports and Resistance (Monthly) 

  • Resistance 1- 295 Supports 1- 257 
  • Resistance 2- 313 Supports 2- 244 
  • Resistance 3- 330 Supports 3- 229

Torrent Power Weekly CHART

ITC LIMITED SPECIAL REPORT From CAPITALHEIGHT

ITC LIMITED 

Indian Tobacco Company (ITC) Ltd. is the multi business enterprise and is the third largest packaged food company in India. The Company is active in the domain of FMCG, Hotels,Paper boards, Packaging, Agri Business and Information Technology. The Company has completed 100 years in 2010, established in 1910 with the name ok Imperial Tobacco Company of India Ltd. At the earlier stages the company’s main focus was on Tobacco Products. In the 1970’s it started business in non-tobacco products. Recently the company has announced that ITC will target Rs 1 lakh crore income from FMCG business by 2030. Currently the revenue from FMCG business for FY 2017 crosses Rs. 8000 Crore. 
  • Major Cigarette brands includes wills Navy Cut, Gold Flake, Insignia, Classic, Bristol
  • Major Food brands Include AashirvaadAata, Sunfeast, Bingo, yippee 
  • Other brands Fiama Di Wills, Classmate, Wills life Style, MangaldeepAgarbattis 
  • Hotels includes Welcom Hotel, India’s 2nd largest Hotel Chain 
  • ITC features on the Forbes Global 2000 rankings for 2012 at position 841. 
Fundamental Analysis 
ITC has a market capitalization of $US 50 billion and turnover of $ 8 billion. ITC plans to invest 25,000 cr funds to strengthen non tobacco business. ITC grows faster than its peers Britannia and Nestle in the past 13 years with a CAGR of 17.97%. If it will grow with the same CAGR till 2030 than it will achieve the set target of 100000 cr. 
  • The company’s revenue from cigarettes is around 34,000 cr. and total revenue is around Rs. 55,000 cr. 
  • It covers nearly 80 percent of the Indian Tobacco market. 
  • ITC has reported net profit of Rs. 2560 cr in the last quarter i.e. June 2017 
  • ITC is the cheapest stock to buy among its peers in terms of price to book value 
  • ITC plans to open 40 new hotels, with 5000 rooms to magnify its hospitality business. 
  • The consolidated revenue from hotel business increased to 1414 cr from 1257 cr in FY 2016-17 
  • It’s price to earnings ratio is near to Industry P/E, signals it is not over valued 
  • ITC’s hotel chain in the country, reported 6.1 per cent growth in gross revenue at Rs 304.89 crore during the first quarter 2017 
  • ITC is the most liquid stock among its peers Britannia (4280), Godrey Phillips (966), and VST (2826), ITC is only Rs.262 per share split at Face value of Re. 1 
Fundamentals
Market cap
318872 cr.
Face value
Rs. 1
Book value
Rs. 38.19
EPS
Rs. 8.54
52 Week H/L
Rs. 367.7/ 222
Dividend Payout
475.00%
Listed at
NSE/BSE




Technical Analysis 
The stock has corrected nearly 30% from its all-time high of 367 and currently trading near 260.It is also the level which ITC breaks in February 2017. 265 was the key reversal level in December 2014, then in February 2015 and then in September 2016. The stock fell down every time when in the last 3 years when it comes near 265, but in February this year it breaks out this level and gains nearly 30 % in last months. Now 265 became the key support level and a reversal is expected. 
  • It has strong trend line support drawn from the lows of February 2016 
  • 100 day EMA also supports the stock which works good on ITC weekly chart 
  • RSI forming a hidden divergence on weekly chart also signals a recovery in the stock 
  • The stock has corrected nearly one third of its value, Now a good level to start buying 
  • 265 earlier became three times monthly resistance now may support the stock. 
Technically the stock may take a bounce from its supports and it can target 295-300 level in the next month, Technical stop loss should be below 240.

www.capitalheight.com/freetrial.php

Give Missed Call at +91 830-630-830-8