5 must have stocks if Nifty corrects post RBI rate cut

The major event that took place on 4th October 2016 is the Reserve Bank of India's
(RBI) fourth bi-monthly monetary policy meeting. The RBI after the third bi-monthly
monetary policy on 9th August 2016, decided to keep the
policy repo rate unchanged at 6.5 per cent. The RBI in its
monetary policy review yesterday cropped its key
lending rate or the repo rate by 25 basis points to a sixyear low of 6.25 per cent, from 6.5 per cent. Banks are
anticipated to pass on the RBI rate cut to customers.
Yesterdays rate decision, the first in the tenure of new
RBI chief, Urijit Patel, commenced a new era for the
central bank. Today's policy decision was for the first
time initiated by a six-member panel called the monetary policy committee or MPC;
the decision was taken by the RBI governor alone.
The BSE Sensex opened 91.19 points, or 0.32 per cent, up at 28425.74 on Wednesday,
while Nifty opened 37.20 points, or 0.42 per cent, up at 8806.35.
Here are the five stocks you must have in your portfolio if Nifty corrects post RBI
Credit policy.

Escorts Limited
On 5th Oct, the stock dipped 1 per cent, opened at Rs. 410.80.
Escorts traded at Rs. 393 beating its previous one-year high on 27th Sept trade. On
3rd Oct, it followed the same by trading at Rs. 409. On 4th, Escorts share price went as
high as Rs.414.20, breaking its last record high. Currently, Escorts share price is
trading at Rs. 404.60.

Performance
YTD

1-Month

3-Month

1-Year

3-Year

5-Year

10-Year

136.71

22.38

82.34

161.55

67.09

41.62

12.17

S&P BSE Small Cap

10.86

3.78

10.41

18.67

33.28

14.1

7.79

S&P BSE Auto

22.98

2.09

15.13

31.26

26.07

21.86

15.5

Escorts Ltd

Escorts Limited, one of India's leading engineering conglomerates operates in the

high growth sectors of agri-machinery, construction. While the strong sales number
posted by Escorts in the month of September was largely driven by pre-festival
exuberance, industry growth also has been fairly good for the last 5-6 months. The
company had disclosed a net profit of Rs 35.2 crore for the corresponding period of
previous financial year. Turnover increased by 9.3 per cent to Rs 1,051.4 crore in
quarter ending June 2016 as compared toRs 961.4 crore in quarter ended June 2015.

Edelweiss Financial Services Limited

Intraday on Wednesday, Edelweiss share price is quoting above 0.55 per cent at Rs.
121.80.

Performance
Edelweiss Financial Services
S&P BSE Mid Cap
Nifty Financial Services

YTD

1-Month

3-Month

1-Year

3-Year

5-Year

10-Yea

110.09

9.5

62.22

103.98

59.99

35.29

21

1.9

13.71

24.4

33.08

17.5

10.07

14.72

-1.32

10.54

15.62

22.82

16.71

14.87

Caisse de Dpt et Placement du Qubec (CDPQ), the 2nd largest pension fund in
Canada, has inked a long-term partnership with Edelweiss Financial Service Ltd in
order to invest around Rs.5,000 crore (nearly $750 million) in stressed assets and
specialized corporate credit in India, in the coming four years.

CDPQ has also agreed to attain a 20 per cent equity stake in Edelweiss Asset
Reconstruction Co. (EARC). This will permit EARC to access CPDQs funding and
invest in new stressed asset companies it acquires from banks and also offer necessary
capital in assets that will be available on EARC'S book.
The stock traded on its fresh one year high value at Rs. 126.00 on 3rd Oct 2016. The
stock volume too spurted by more than 2.27 times.

The other shareholders in EARC will be a Scandinavian insurance company with a 4

per cent stake, 16 per cent will be held by Indian investors and the balance by the
Edelweiss Group.

Thirumalai Chemicals Limited

Thirumalai Chemicals share price rolled below 0.76 per cent, intraday on Wednesday.
The stock opened at Rs. 650.00 against its previous closing at Rs. 644.30.

Thirumalai Chemicals has grown into a diverse and respected enterprise, expanding
into the manufacture of many other critical Industrial Chemicals: Maleic Anhydride,
Fumaric Acid and Malic Acid and various Fine Chemicals and Derivatives.
The total income from operations dipped 26 per cent. In the current June quarter it
stood at Rs. 167.94 cr against Rs.227.04 cr in the corresponding period last year.
The Net Profit fell by 13.8 per cent in the June quarter and stood at Rs. 15.48 cr
versus Rs.17.96 cr in the same period last year. Nonetheless, since Dec, 2015 quarter
its net profit has shown an upward movement. Therefore, the company is showing
positive growth.

The stock traded at its new 52 week high value at Rs. 667.35 and settled at Rs.
644.30.

Triveni Engineering & Industries Limited

The stock opened at Rs.59, touching the days high and low at Rs. 59.900 and
Rs.58.55.
Performance
YTD

1-Month

3-Month

1-Year

3-Year

5-Year

10-Year

Triveni Engineering

37.79

13.51

-9.47

122.12

68.31

23.08

-1.55

S&P BSE Small Cap

10.86

3.78

10.41

18.67

33.28

14.1

7.79

8.49

-3.59

-0.8

9.83

7.99

17.24

15.33

S&P BSE FMCG

Triveni Engineering & Industries Ltd was incorporated in the year 1932, is a Small
Cap company (having a market cap of Rs 1528.32 Cr.) operating in Sugar sector. For
the quarter ended June 30, it disclosed a huge rise in standalone net profit at Rs 42.80
crore. The company had noted a net loss of Rs 93.48 crore in the same period of
previous financial year. On the other hand, total income from operations shot up to
Rs 600.86 crore during the quarter under review as compared to Rs 504.68 crore in
the year-ago period.
Peer comparison
Market cap
(Rs Cr)

Revenue
(Rs cr)

Net profit
(Rs. Cr)

Net margin
(%)

ROE
(%)

Price to
book

Price to
earnings

Triveni Engineering

1,506.40

2,011.20

103.2

5.08

-1.5

2.18

11.71

Balrampur Chini Mills

Bannari Amman Sugars

2,668.13

2,909.84

282.86

9.57

8.44

1.99

9.43

2,196.42

1,381.92

106.2

7.65

0.11

2.2

20.68

Chemfab Alkalis Limited

Chemfab Alkalies Limited was incorporated in the year 1983, is a Small Cap company
(having a market cap of Rs 293.45 Cr.) operates in Chemicals sector. For the quarter
ended 30th Jun 2016, the company has noted standalone sales of Rs. 30.36 Cr., up

32.46 per cent at Rs. 22.92 Cr from the corresponding quarter last year. Furthermore,
the company has reported net profit after tax of Rs. 6.19 Cr. in latest quarter.

Share Holding

Promoters
Foreign Promoters
General Public
Others
NBFC and Mutual Funds
Financial Institutions

Key Ratio

Revenue per share (Rs)

130
125
120
Revenue per share (Rs)

115
110
105
100
Marc '13

Mar '14

Mar '15

Mar '16

Jun '16

The stock is quoting at Rs. 320.50, on 5th Oct, opened at Rs. 323.60 against its
previous closing of Rs. 319.45.
Escorts, Edelweis, Thirumalai Chemicals, Triveni Engineering and Chemfab Alkalies
are Multibagger stocks for this quarter as identified by Dynamic Levels research
analysts. These are well analysed multibagger stocks, based on analysts technical
and fundamental research, these stocks have traded in very high volumes. As
observed, these companies multiply their earnings per share every year and bears
great potential to grow in the long run.

Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the
research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making
investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Disclosure
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letters or levied minor penalty on for certain operational deviations.
Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research
Analyst/ his Relative:

Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or any compensation or other benefits
from the subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company

Article Written by
Madhurima Chowdhury