Vol.

: 333
20 MAR ,2017

Index

Market View 1 MARKET VIEW

Company Update 2
RE-RATING OF INDIA IS EXPECTED
Around the
Economy 3 As we know that the current economic situation of India is an ideal one for any

Knowledge Corner 3 country. Almost all important parameters of economy are in healthy situation. The out-
come of current election has convinced the international fraternity that ongoing reforms
Mutual Fund 4
will be on fast track and will be dip enough to impact all the sectors of economy. For
Commodity Corner 5 capital market, the political stability is very important and the same is meaningfully
achieved in India. The socio, economic and political reforms will change the face of the
Forex Corner 6
country and lift the GDP and per capita income of the population. Under the circum-
Report Card 7 stances the international investor fraternity is likely to rerate Indian corporate sector
and meaningful inflow from FIIs is likely to come chasing Indian equities.
Short Term Call Status 8

Editor & Contributor

Darshana Mishra Under the circumstances the investors having medium to long term view will be
benefited as the market is a trend market rather than a trading market. Technically,
there is a strong base near 8900-8700 level and with this strong base it is likely to
Special Contributors
Kunal Shah scale new heights.
Dhaval Ghodasara

For suggestions, feedback

and queries
Kamal Jhaveri
jstreet@jhaveritrade.com
MD- Jhaveri Securities

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20 MAR ,2017

Company Update : PETRONET LNG LTD

Company Basics Financial Basics Share Holding Pattern
BSE Code 532522 FV (`) 10.00 Holder's Name % Holding
EPS (`) (TTM) 19.71 Promoter 50.00
NSE Symbol PETRONET P/E (x) (TTM) 19.48 Public 50.00

EQUITY (` in Cr.) 750 P/BV (x) (TTM) 4.52

MKT.CAP (` in Cr.) 28800.00

Outlook and valuation : We recommend BUY on the stock on account of expansion plans at Dahej plant by
FY17E. Also increased by cut of custom duty and expansion of Kochi-Mangalore pipeline. We target stock to
trade at EV/EBITDA of 8.14x in FY17E. (Target price of Rs.460)

Company Overview :
The Government of India, in July of the year 1997 approved the formation of a Joint Venture Company (JVC) for securing
competitive Liquefied Natural Gas (LNG) supply and for development of facilities for the import and utilization of LNG. The
GAIL (India) Ltd (GAIL), Oil & Natural Gas Corporation Ltd (ONGC), Indian Oil Corporation Ltd (IOCL) and Bharat Petroleum
Corporation Ltd (BPCL) formed Petronet LNG Limited as a Joint Venture company. The Company was incorporated in 2nd
April of the year 1998 to import LNG and set up LNG terminals in the country; it involves India's leading oil and natural gas
industry players. It has (LNG) receiving and regasification terminal at Dahej, Gujarat. Petronet also has a strategic partner-
ship with French-based Gas Company, GAZ De France and a LNG sale and purchase agreement with Ras Laffan Liquefied
Natural Gas Company, Qatar for the supply of LNG in India.

Investment rationale for Petronet LNG

As against expanded capacity of 15mmtpa, Petronet has got firm usage for 16.75mmtpa. It already operated at annualized rate of
12.4mmt in 1HFY17. Hence, we do not have much of a concern about utilization of Dahej facility.

We expect Dahej facility to ramp up to 15mmtpa by FY18. The facility is expected to expand to 17.5mmtpa in the next phase. Addi-
tionally, work has started on the Kochi-Mangalore pipeline. Even if this is not completed, we expect Kochi refinery expansion to
raise utilization of Kochi LNG terminal to 20% in FY18.

Once the Kochi-Mangalore pipeline is completed, utilization would ramp up to 50%. For long-term growth, the company is also con-
templating on LNG terminals overseas.

Petronet completed its 5mmtpa expansion at Dahej at a cost of INR20b. Any green field LNG terminal of 5mmtpa would cost
~INR50b. This makes Dahej the cheapest alternative available to the consumers.

Cut down of LNG Custom duty from 5% to 2.5% by government and government focus on providing gas fuel to all households.

Once Vizag port has been started, Petronet will be able to supply gas to all the major steel producer located in Chhattisgarh, Odisha
& Jharkhand.

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Around The World

Weekly Market Recap :

Domestic stock markets registered strong gains in the truncated week ended Friday, 17 March 2017, on the back of thumping victory for
the Bharatiya Janata Party (BJP) in the Uttar Pradesh assembly elections. Another data showed that India's exports rose 17.48% at
$24.49 billion in February 2017 over February 2016. Imports rose 21.76% to $33.38 billion in February 2017 over February 2016.

US Federal Reserve raised interest rates by 0.25% as expected without accelerating its timeline for future tightening. The Bank of Japan
(BOJ) left policy unchanged on Thursday, 16 March 2017, sticking with its expansionary measures even though other major central
banks, including the Federal Reserve, are shifting away from years of unusually aggressive stimulus.

Market Eye Week ahead :

Shares of Avenue Supermarts may get listed on the bourses next week. The IPO received strong response from investors. The govern-
ment expects to complete the process for implementation of the Goods and Services Tax (GST) in the current session. GST is slated to be
implemented from 1 July 2017.

Among the key global events, the China's CB Leading Economic Index for February 2017 is scheduled to release on Tuesday, 21 March
2017. The minutes of the Bank of Japan's (BOJ) monetary policy meeting will be out on the same day. Eurozone Markit PMI Composite
data for the month of March 2017 is slated to release on Friday, 24 March 2017.

Key Events / Factors to Watch

1. Mon : Bd Meet: HCL Tech, Hind Zinc
2. Tue : Dividend: CRISIL, Shilpa medicare
3. Wed : Dividend: Sun TV
4. Thu: Dividend: Ajanta pharma, Engineers india
5. Fri : BD Meet: REC Ltd, Atul Ltd.

Knowledge Corner :
INITIAL PUBLIC OFFERING (IPO)

Initial public offering is the process by which a private company can go public by sale of its stocks to general public. It
could be a new, young company or an old company which decides to be listed on an exchange and hence goes public.

How it works?
After IPO, the company's shares are traded in an open market. Those shares can be further sold by investors through
secondary market trading.

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Mutual Fund Corner

Top 10 Sector Break-Ups
Fund Name
Sector Weights Fund (%)
Scheme Name BIRLA SUNLIFE ADVANTEGOUS FUND
Financial 32.34
AMC BSL Asset management Company Automobile 10.85
Energy 10.87
Type Open Ended & Equity Multi Cap
Healthcare 7.35
Category Open-ended FMCG 3.66
Launch Date Feb 1995 Technology 4.75
Metals 7.61
Fund Manager Satyabrata Mohanty Oct 2011 Construction 5.97
Net Assets (` Diversified 6.19
Rs. 2693.5 as on Feb 28, 2017
In crore ) Communication 2.60
History 2013 2014 2015 2016 Risk Analysis
Volatility Measures
NAV (Rs) 173.66 278.11 292.67 317.48
Standard Deviation 18.21
Total Return (%) 7.23 60.14 4.77 8.48 Sharpe Ratio 1.17
Beta 1.15
Rank (Fund/Category) 27/73 9/145 59/71 31/143
R-Squared 0.80
Alpha 12.33
52 Week High (Rs) 173.76 280.58 314.86 362.13

52 Week Low (Rs) 136.14 164.16 272.70 252.92

Composition (%)
Equity 97.92
Net Assets (Rs.Cr) 278.89 393.02 580.62 1857.45 Debt 3.31
Cash -1.23
Expense Ratio (%) 2.87 2.85 2.81 2.39

Fund Performance v/s S&P BSE 100 Fund Style

Investment Style
Growth Blend Value
Large
Capitalization

Medium

Small

Fund
S&P BSE 200
(Rebased to 10,000) Source : - www.valueresearchonline.com

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Commodity Corner

BULLION
FUNDAMENTAL: Bullion prices dropped as growing expectations for a March rate hike in the U.S. and a stronger U.S. dollar continued to
weigh on the precious metal. The greenback remained broadly supported after a number of Federal Reserve officials this week ex-
pressed their support for a March rate hike. The U.S. Department of Labor said initial jobless claims declined by 19,000 to 223,000 in the
week ending February 25 from the previous weeks total of 242,000. Fed Chair Janet Yellen added her influential voice, saying a hike
this month would be "appropriate" if economic data hold up. Federal Reserve policymakers who have recently signaled a pending U.S.
interest rate rise are correct given the growing confidence and aggregate demand in the economy and stock market since the U.S. elec-
tion, the Fed's vice chairman said. "If there has been a conscious effort (to raise expectations for a rate hike) I'm about to join it," Stanley
Fischer told an economists' forum, when asked about comments by other Fed officials this past week that have boosted market odds of
a March rate hike.

RECOMMENDATION : SELL GOLD @ 29500 SL 29850 TGT 29150 SELL SILVER @43100 SL 43800 TGT 42440-41800.

BASE METALS

FUNDAMENTAL: Base metals prices ended with mixed node where nickel and copper ended with gains followed by losses in zinc and
lead prices as data from China, including manufacturing and service sector activity, cast doubt over the sustained growth of the world's
second-largest economy. Nickel gained as support seen after update that the Philippines could consider banning exports of unprocessed
minerals such as nickel in an effort to promote value addition in the mining sector, a senior environment official said. "It is one of the op-
tions that has to be considered not only by the DENR (Department of Environment and Natural Resources) but by the entire govern-
ment," DENR Undersecretary Maria Paz Luna told reporters. Ms Luna spoke after a meeting with other government officials tasked to
conduct a second review of 28 mines ordered closed or suspended by the environment ministry. Prices remained supported on the po-
tential for supply disruption from the world's top nickel ore exporter, but miners said following in the foosteps of neighbouring Indonesia
wouldn't be viable without big government incentives.

RECOMMENDATION : SELL ALUMINIUM @ 129 SL 132 TGT 126.50-124 SELL COPPER @ 404 SL 412 TGT 395.5-388 SELL ZINC @ 189
SL 193 TGT 186-183 SELL NICKEL @ 745 SL 765 TGT 728-710

ENERGY

FUNDAMENTAL : Crude oil dropped as record-high U.S. crude stockpiles were seen jeopardizing OPECs efforts to drain a global sur-
plus. Also pressure seen as stung by a stronger dollar and as concerns over a record build-up in U.S. stockpiles weighed on the market,
with producers boosting shale oil production. Russia's February oil output was unchanged from January at 11.11 million barrels per day
(bpd), energy ministry data showed, with its cuts from October 2016 levels remaining at 100,000 bpd or a third of what was pledged by
Moscow under its agreement with the Organization of the Petroleum Exporting Countries (OPEC). Official U.S. data also showed that
crude inventories in the world's biggest oil consumer rose for an eighth straight week to a record 520.2 million barrels last week. But
even as U.S. oil production rose and Russian output held steady, OPEC boosted already strong compliance with the group's six-month
deal to 94 percent, cutting output for a second month in February, a survey found. Russian Energy Minister Alexander Novak said it was
too early to say if the deal to reduce oil production would be extended beyond the end of June.

RECOMMENDATION : BUY CRUDE @ 3480 SL 3350 TGT 3620-3720 SELL NAT.GAS @ 191 SL 199 TGT 182-175

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Commodity Corner
Forex Corner
Market Recap :

The Indian rupee on Monday strengthened further

against the US dollar after foreign investors con-
tinued to buy in local equity and debt markets.

The 10-year bond yield was trading at 6.868%,

compared to its Fridays close of 6.863%. Bond
yields and prices move in opposite directions.

The dollar index, which measures the US cur-

rencys strength against major currencies, was
trading at 100.13, down 0.17% from its Mondays
close of 100.30.

Market Eye Week ahead :

The USDINR On daily chart pair below all short term, medium term, and long term moving average which is 20,
100 and 200.Whereas on weekly chart pair has continually taking support at 50WMA. Which suggest short term
trend is bearish. So for trading perspective, one could sell to the level 65.80-65.50 with SL of 66.20 for target of
65.20-65.10.

USD/INR
Level S2 S1 CP R1 R2 High Low Close
USD/INR 64.70 65.13 65.75 66.18 66.80 66.36 65.31 65.57

EUR/INR
Level S2 S1 CP R1 R2 High Low Close
EUR/INR 69.08 69.79 70.32 71.03 71.56 70.85 69.61 70.50

GBP/INR
Level S2 S1 CP R1 R2 High Low Close
GBP/INR 79.11 80.10 80.75 81.74 82.39 81.35 79.75 81.10

JPY/INR
Level S2 S1 CP R1 R2 High Low Close
JPY/INR 56.82 57.40 57.73 58.31 58.64 58.05 57.14 57.99

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J Street Recommendations Report Card

Nifty last week opened at 9091.65 attained a low at 9060.50 and moved up to a register a high at 9218.40. Nifty finally closed the
week at 9160.05 thereby showed a rise of 225 points on week to week basis However, weekly chart candle was positive at the end
of the week. The candle is like a stalled pattern candle which suggests that upside momentum will continue on sustained rise
and close above 9218.The gap at lower range now is 9060-8977 and the body gap gets closed at 8934.Support for the week can be
9146-9074 and the gap is 9060-8977. Weaker opening and correction first to 9146-9074 or in the gap of 9060-8977 can be used for
buying with a stop loss of 8800.
Top Fundamental Stocks
Absolute
Stocks Rec. Date CMP on Rec. CMP Target Return @ Status
CMP
Petronet LNG 20/02/2017 400 391 490 -2% Buy

Escorts 06/02/2017 383 524 575 37% Buy

Edelweiss financial 16/01/2017 117 137 175 17% Acculumate

IOC Ltd 27/02/2017 376 373 470 -1% Acculumate

Alembic Pharma-
30/08/2016 630 603 732 -4% Buy
ceuticals
Coromandel
25/07/2016 235 325 308 38% Profit book
International
Capital First 06/06/2016 552 721 660 31% Profit book
Wonderla Holidays 25/04/2016 387 392 498 1% Accumulate
Mold-Tek Packaging 04/04/2016 138 49 179 0% Buy
Garware-Wall Ropes 28/12/2015 425 693 550 63% Profit book
AYM Syntax 23/11/2015 121 76 223 -37% Buy
Natco Parma 02/11/2015 509 800 636 57% Buy

SRF 21/09/2015 1140 1629 1374 43% Profit book

Ahluwalia contracts 24/08/2015 235 322 368 37% Profit book

Infinite Computer
20/07/2015 190 223 255 17% Buy
Sol.
Sadbhav
04/05/2015 298 305 430 2% Buy
Engineering Ltd.
Omkar speciality
16/03/2015 152 156 251 3% Buy
Chemicals
DHFL 16/02/2015 252 361 368 43% Accumulate
M&M 12/01/2015 1238 1303 1452 5% Buy
Havells India 27/10/2014 274 445 346 62% Profit book
PTC India Fin. Ser. 07/07/2014 39 39 45 0% Profit book
Rule no 1: Never lose money. Rule no 2: Never forget Rule no.1. Warren buffet

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20 MAR ,2017

J Street Short Term Call Status

Sr. BUY/ TRIGGER %
No.
DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
1 1-Feb-17 NBCC BUY 268 272 270.00 283.00 260 EXPIRE .

2 2-Feb-17 M&M BUY 1285 1296 1290.50 1350.00 1250 TA 4

3 3-Feb-17 UPL BUY 730 738 734.00 766.00 712 EXPIRE .
4 6-Feb-17 COALINDIA BUY 324 328 326.00 341.00 315 TA 3.6
5 7-Feb-17 SIEMENS BUY 1220 1234 1227.00 1282.00 1184 SL -3.8
6 8-Feb-17 CESC BUY 800 808 804.00 840.00 776 TA 4.2
7 9-Feb-17 GAIL BUY 483 488 485.50 505.00 471 TA 4.22
8 10-Feb-17 MOTHERSUMI BUY 345 352 348.50 366.00 337 TA 3.8
9 13-Feb-17 EMAMILTD BUY 1135 1145 1140.00 1190.00 1100 SL -3.8
10 14-Feb-17 INFY BUY 976 988 982.00 1024.00 949 TA 4.2
11 15-Feb-17 TECHM BUY 502 508 505.00 528.00 487 EXPIRE .
12 16-Feb-17 IGL BUY 1040 1052 1046.00 1094.00 1011 SL -3.6

13 17-Feb-17 BAJFINANCE BUY 1090 1105 1097.50 1149.00 1060 SL -3.8

14 20-Feb-17 L&TFIN BUY 115 117 116.00 122.00 112 TA 4.2

15 21-Feb-17 HEXAWARE BUY 212 216 214.00 225.00 206 TA 4.2
16 22-Feb-17 DISHTV BUY 92 94 93.00 98.50 88 TA 4
17 23-Feb-17 KTKBANK BUY 125 128 126.50 134.00 121 TA 4.2
18 28-Feb-17 BEML BUY 1330 1345 1337.50 1397.00 1296 EXPIRE .

19 1-Mar-17 ARVIND BUY 376 381 378.50 396.00 366 TA 4.2

20 2-Mar-17 M&M BUY 1340 1356 1348.00 1410.00 1298 EXPIRE .
21 3-Mar-17 ULTRACEMCO BUY 3800 3840 3820.00 3990.00 3710 TA 4.4
22 6-Mar-17 TITAN BUY 434 441 437.50 457.00 423 TA 4.5
23 7-Mar-17 LICHSGFIN BUY 560 570 565.00 594.00 546 TA 5.1
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J Street Short Term Call Status

BUY/ TRIGGER %
Sr. No. DATE STOCK RANGE RANGE TGT SL STATUS
SELL PRICE RETURN
24 8-Mar-17 COLPAL BUY 925 935 930.00 972.00 898 TA 4.6
25 9-Mar-17 ZEEL BUY 507 516 511.50 538.00 491 OPEN .

26 10-Mar-17 UPL BUY 705 715 710.00 744.00 686 OPEN .

27 14-Mar-17 JUBLFOOD BUY 1064 1080 1072.00 1127.00 1028 TA 4.4

NA-
28 15-Mar-17
TIONALALUM
BUY 72 73 72.50 81.00 66 OPEN .

29 16-Mar-17 JINDALPOLY BUY 348 352 350.00 386.00 315 TA 4.6

30 17-Mar-17 IBULHSGFIN BUY 940 954 947.00 1004.00 912 OPEN .

STATUS CALLS RATIO

TA+PB 17 80.95

SL+EXIT 04 19.05

TOTAL 21 100.00

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 the
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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