IndianMarketPulse-Investment Advice

We recommend traders to accumulate IGL in the range of Rs 279 to 275 with a price target of Rs 320 – 340 levels respectively. A stop loss should be placed below Rs 250 on a closing basis. After forming a strong base near Rs 240, Indraprastha Gas (IGL) saw a spectacular run-up during late June 2018 through early August 2018. Subsequently, it witnessed a decent profit booking and corrected towards Rs 273 – 275. Looking at the daily chart, the previous daily resistance of early June 2018 which was acting as a strong resistance had reversed its role post breakout and is likely to provide strong support. The daily RSI (14) is approaching towards the 40 levels. Hence, we recommend traders to accumulate IGL in the range of Rs 279 to 275 with a price target of Rs 320 – 340 levels respectively. A stop loss should be placed below Rs 250 on a closing basis. MORE WILL UPDATE SOON!!

We expect earnings to come at Rs. 1390 Cr, leading to an EPS of Rs 24.3 in FY20 and maintain a buy.   The continuing strong demand due to the anti-dumping duty and sales of higher-ton CVs is benefiting Apollo Tyres, in our view. Hence, we expect double-digit replacement growth in FY19, too. Strong growth in truck radial tyres. The company plans to increase its Radial capacity in Chennai from 10,000 tyres a day to 12,000 by September 2018. The Hungary plant’s capacity is expected to be increased by FY19 to 16,000 tyres a day and would be the volume growth catalyst in FY19 and FY20. Operating margin of its European business to improve from 2.6% in FY18 to 4% in FY19. The company has started foundation work for a new passenger-car-tyre plant in Andhra Pradesh and expects volumes to scale up in FY20. We expect revenue to clock a 19% CAGR over FY18-20 to Rs. 21,100 Cr and expect the margin to expand from the present 11.1% in FY18 to 12.5% in FY20. Accordingly, we exp...