For this week, Nifty has strong support at 10,785-10,730 and resistance at 10,940-11,025
Sumit Bilgaiyan
Indian frontline indices witnessed highly volatile moves during the last week but the midcap and smallcap shares saw fresh buying at lower levels.
Despite huge volatility, broader markets outperformed the benchmark as BSE Midcap and Smallcap ended with gains of 2.4 percent and 3.4 percent, respectively. After the Indian Air Force air strike in Pakistan, there are bright chances of the current government coming back to power which is positive sign for sentiment.
Sentiment will improve once geopolitical tensions cool off. So this is the time to accumulate quality stocks in a staggered manner. The island reversal pattern that has occurred on the daily chart is suggestive of some higher levels for the coming week.
For this week, Nifty has strong support at 10,785-10,730 and resistance at 10,940-11,025.
Atul Auto is amongst the fastest growing 3-wheeler companies in India, with presence across 21 states. During nine-month of FY19, its sales grew 19.36 percent to Rs 496.16 crore, EBITDA grew 23 percent to Rs 68.99 crore and PAT increased 20 percent to Rs 41.33 crore.
At CMP, this debt-free company’s stock trades at a P/E ratio of 13.5x. The company's sales were up 13.39 percent at 4,106 units, against 3,621 units during the same period a year ago.
With an equity capital of just Rs 10.97 crore and reserves of Rs 208.42 crore, AAL's share book value works out to Rs 100.63. Technically stock is looking strong on daily and weekly charts. We recommend buying in a staggered manner for medium to long term.
PSP Projects provides construction services across industrial, institutional, residential, social infrastructure, and commercial projects in India. It has reported above-expected numbers for Q3FY19.
Its sales and EBITDA grew 53 percent YoY and 39 percent YoY, respectively, and its PAT grew 41.41 percent to Rs 21.46 crore as against Rs 15.18 crore. During nine-month of FY19, its PAT grew 45.18 percent to Rs 60.11 crore on 51.4 percent higher sales of Rs 705.76 crore.
During 9MFY19, EBITDA grew 49 percent to Rs 115.42 crore as against Rs 77.62 crore. PSP trades at PE ratio of 18x. Promoters have increased their stake by 1.29 percent after listing. Its order book as of December 2018 was worth Rs 2,701 crore. We recommend buying in a staggered manner for medium to long term.
International Paper APPM is one of the largest integrated paper and pulp manufacturers in India. It has reported strong results for Q3FY19, its sales and EBITDA has grown 14.59 percent YoY and 89 percent YoY, respectively, and its PAT has grown 179.22 percent to Rs 57.87 crore as against Rs 20.73 crore.
During nine-month of FY19, its PAT grew 178.47 percent to Rs 140.17 crore on 11.9 percent higher sales of Rs 1,051.95 crore. EBITDA grew 86 percent to Rs 275.86 crore as against Rs 148.69 crore. APPM trades at PE ratio of 10.9x. We recommend buying in a staggered manner for medium to long term.
The author is Founder of Equity99.
Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
