*SELL and THINK*.

We tend to buy a company's shares when it seems to exhibit good prospects. But, suddenly something happens like an earthquake or terrorist attack and the share prices tumble like the twin towers (9/11).

Retail investors remain trapped and hope that they would recover the purchase price but it rarely ever recovers.
For the last few months, many people ask about YES Bank, DHFL, Rel Capital, etc.
These kinds of once gems, becoming problem companies will also be there in the future.

The powerful Mantra is to make a decision:

Whenever you travel in a taxi and the tire gets punctured, you get down from the taxi, pay the bill and say goodbye to the taxi driver. *You only fix the tire and continue with the journey if it's your own car.*

Whenever there is a major change in the fundamentals of a company, just use this Mantra: *SELL and THINK*

Don't try to apply technical analysis to fundamentally crisis-ridden companies. Just because you have a hammer in your hand (knowledge of technical analysis), don't use it to hit everything that looks like a nail. Please try to understand the basic assumptions of technical analysis. Technical analysis is applicable to only fundamentally sound companies at a given point in time.

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*Stocks To Watch*

Telecom stocks—Bharti Airtel and Vodafone Idea—will be in focus as the long-pending judgment related to the AGR case is expected to pronounce verdict today at around 1 p.m. If the judgement is against the telecom operators then Airtel would have to pay dues worth Rs 21,682 crore, while Vodafone Idea would have to pay around Rs 28,309 crore.

HCL Tech announced a 1:1 bonus share issue. The board of Directors increased the authorized share capital to Rs 600 crore from Rs 300 crore.

IDBI Bank allotted shares worth Rs 4,743 crore to LIC and Rs 4,557 crore to the Government of India through Preferential Issue on Oct. 23.

MTNL to be merged with BSNL. MTNL to act as a subsidiary of BSNL until the merger is completed. PVR has set QIP Floor Price at Rs 1,809.53 each, which is at a premium of 2 percent to the closing prices of Oct. 23.

Jindal Stainless signed MoU with Braithwaite & Co to develop stainless bridges on the sidelines of ongoing International Railway Equipment Exhibition in New Delhi.

Yes Bank clarified on the news of borrower failing to pay Rs 480 crore dues stating that taking possession of mortgaged property has been done in the usual and ordinary course of business.

Sadbhav Engineering’s arm Sadbhav Infra Project has received approval from various authorities for the transfer of its 100 percent stake in 7 special purpose vehicles to Indinfravit Trust. The authority approval for balance 2 projects is under process and at an advanced stage.

Dewan Housing Finance has taken cognizance of key observations made by KPMG in its draft report of special audit of the troubled shadow lender’s books of accounts.

Biocon: Dr. Arun Suresh Chandavarkar’s tenure as CEO and Joint MD to end on Nov. 20. The current CFO Siddharth Mittal will be the new CEO and Joint MD with effect from Jan. 1.

Reliance Capital has defaulted on NCDs interest/principal which were due on Oct. 22.

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Reliance Capital has defaulted on NCDs interest/principal which were due on Oct. 22.

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Q2 Results | Latest & Breaking News on Q2 Results |

Jubilant Foodworks – Q2 FY20 (Unaudited – Cons.)
Share price – 1435

Total revenue from operations at 988.05 Cr
889.78 Cr (11.13%) YoY | 949.11 Cr (4.12%) QoQ

Six month ended revenue: 1947.1 Cr Vs. 1753.01 Cr (11.02%)

Net Profit of 72.98 Cr
75.55 Cr (-3.43%) YoY 71.48 (2.07%) QoQ

Six month ended Net Profit: 144.46 Cr Vs. 147.68 Cr (-2.14%)

EPS (in Rs.) 5.56
5.73 YoY | 5.43 QoQ

Six months ended at EPS: 10.99 Vs. 11.19


View: The result is improved. YoY and QoQ revenue up but profit down mainly for high depreciation in the tune of INR 85 Cr Vs. 39.4 Cr in the corresponding previous quarter and exceptional Item of INR 12 Cr for provision created against investments made by Jubilant FoodWorks Employee Provident Fund Trust, in the corporate bonds of DHFL, Reliance Capital & IL&FS and fully provided for on account of prevailing uncertainties. EBITDA improved significantly despite the slow down in the various sectors.

Business Highlights & Updates:

Standalone Q2FY EBITDA is around INR 235.0 Cr Vs. 147.5 Cr in Q2FY19 Vs. 161.5 Cr in Q2FY19. EBITDA Margin is around 23.8% Vs. 16.7% Vs. 16.4%.

Sales growth for Domino’s Pizza stood at 6.5% for the quarter (i.e. sales growth of stores that were not spilled this FY and PY). Same-Store Growth (SSG) for Domino’s Pizza was 4.9%, lapping a high base of 20.5% last year.

1,283 restaurants as of 30th September 2019 across 276 cities. 1 city/state added (Agartala, Tripura), 1 city exited (Ramnagar, Karnataka) in Q2 FY20. Domino‟s Pizza – 40 Stores opened, 6 Stores closed. Total at 1,283. Store opening highest in the last 15 quarters. Bangladesh: Opened second store in Bangladesh

Dunkin’s Donuts 30 restaurants as of 30th September 2019 across 10 cities.

ROE and ROCE is around 24% and 43% respectively and book value per share is around INR 101 per share and share is currently trading at 14.1x of its book value. The company is currently trading at an annualized PE of around 65 which looks expensive. Promoter holding in the company is around 41.9% and stable in QoQ and YoY, FIIs and mutual fund hold around 34.5% and 13% respectively which is too strong.

Share price high 1518 and now 1422. Jubilant FoodWorks Limited (JFL/Company) is part of the Jubilant Bhartia group and is one of India’s largest foodservice company, with a network of 1,283 Domino’s Pizza restaurants across 276 cities (as of September 30, 2019). The Company has the exclusive rights to develop and operate Domino’s Pizza brand in India, Sri Lanka, Bangladesh, and Nepal. At present, it operates in India, and through its subsidiary companies’ in Sri Lanka and Bangladesh. The Company also has exclusive rights for developing and operating Dunkin’ Donuts restaurants for India and has 30 Dunkin’ Donuts restaurants across 10 cities in India (as of September 30, 2019). JFL has entered into the Chinese cuisine segment with its first owned restaurant brand, ‘Hong’s Kitchen’ and has 1 Hong’s kitchen restaurant across 1 city in India (as of September 30, 2019).
Their brand Dominos Pizza is highly reputed and very famous among the youngster due to youngster population growth in the country and also expansion by the company in various Tier II & Tier III cities with more focus towards online sales of their Pizza and others the growth outlook remain stable. Long term investors can continue with the company with a target price of INR 1800.

Risk: Highly volatile business any negative sentiments against the fast-food chains and restrictions can correct and harm the share price.

Disclaimer: Views are shared based on market research and study and personal in nature. Others can take different views and opinions. Please do a thorough study before entering or exit the shares.
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Business Highlights & Updates:

Advertising Revenue stands at Rs. 809 Cr as against Rs. 868 Cr in H1 of last fiscal. Advertising Revenue stands at Rs. 367 Cr as against Rs. 413.2 Cr in Q2 last fiscal.

EBIDTA stands at Rs. 280.2 Cr (margin of 24%), against EBIDTA of Rs. 272.5 Cr (margin of 22%), in H1 FY2019, after considering forex loss of Rs. 1.7 Cr. EBIDTA was at Rs. 100.6 Cr (margin of 19%), against EBIDTA of Rs. 97.7 Cr (margin of 17%) after considering forex loss of Rs. 1.71 Cr.

Radio Business: Advertising revenues at Rs. 69.3 Cr in H1FY2020, against Rs. 69.4 Cr in H1 FY2019. Advertising Revenue stands at Rs. 31.6 Cr against Rs. 37.7 Cr in Q2 FY2018.

EBIDTA stands at Rs. 20 Cr (margin of 29%) against Rs. 19.1 Cr (margin of 27%). EBIDTA stands at Rs.6.9f Cr (margin of 22%) against Rs. 12 Cr (margin of 32%).

ROE and ROCE is around 14.7% and 22% respectively and book value per share is around INR 105 and share is currently trading at 1.4x of its book value. Company is currently trading at annualized PE of around 9 and it looks good as per Industry benchmark. Promoter holding in the company is around 71.6% which is stable and good. FIIs and mutual funds hold 18.1% and 2.6% respectively. Company is virtually debt-free and three-month debtor realization period which also looks stable in this mark.

The Board of Directors at its meeting held on October 16, 2019, has declared an interim dividend of Rs. 6.50 per equity share of the face value of Rs. 10 each. The same would be paid to all eligible shareholders as on the record date declared by the Company. Last year interim dividend paid was INR 8 per share so, therefore, it's own according to the market situation.

Share price high 208 and now 152. DB Corp Limited (DBCL), India's largest print media company and home to flagship newspapers - Dainik Bhaskar, Divya Bhaskar, Divya Marathi, and Saurashtra Samachar. Its leading newspaper in various north India states. Due to the economic slow down resulting in weak demand and less advertisement spends by various companies their top line has been impacted. Their first-half looks like to challenging in current economic stress. As per the management comments they are working on cost-effective measurement to sustain the bottom line in upcoming quarters.
Long term investor continues with the company with a target price of INR 180. The company is paying a dividend to its shareholders as well.

Disclaimer: Views are shared based on market research and study and personal in nature. Others can take a different view and opinion. Please do a thorough study before entering or exit the shares.
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Latest & Breaking News Reliance Jio (RJIO) Today

Reliance Jio (RJIO) today announced an unconventional price hike that
recovers interconnect usage charge (IUC) for off-net calls (calls to other networks) from subscribers in the form of additional recharge vouchers. Ceteris paribus, this works out to a price hike of about 14%. Still, we believe that additional charges for off-net calls would disincentivize users to call other operators, which would reduce off-net call volumes for RJIO. We assume additional charges to drive up revenue ~5%, which would translate into a ~10% increase in EBITDA. We consider the tax hike from the price-setter is positive for the telecom industry and will provide other operators leeway to hike prices proportionately. As highlighted in our Daylight again report, we anticipated a price hike by RJIO in H2FY20. But the approach the price hike has been taken is perplexing considering it may cause inconvenience and anxiety to subscribers. Other operators may follow the action, but by simply raising the tariff.

Sector outlook: Finally a tariff hike
RJIO has finally taken an unconventional a price hike with a caveat that it will stop charging off-net calls if TRAI reduces IUC charges to zero. We expect RJIO to take further tariff hikes for higher payouts towards InvIT—to fund incremental CAPEX for its FTTH business and bring down net debt. Significant funding to RJIO to grow market share remains the key risk to our thesis. At the current level, Bharti is trading at 4.6x FY21E EV/EBITDA; maintain ‘BUY/SO’ with a target price of INR414. The idea is trading at 7.4x FY21E EV/EBITDA; maintain ‘HOLD/SP’ with a target price of INR7.

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What is fundamental analysis what is its main objective?

Step-1: Politico-Economic Analysis
1. Politico-economic factors affect an industry and a country.
2.Stable political environment necessary for steady, balanced growth.
3.International events impact industries and companies.
4. Countries need foreign exchange reserves to meet its commitments, pay for imports and service foreign debts.
5. The possibility of the devaluation of one’s currency / the appreciation of another currency is a real risk. One can hedge this by entering into forwarding contracts.
6. Restrictive practices or cartels imposed by countries can affect companies and industries. Investors must determine how sensitive a company is to governmental policies and restrictive policies.
7. Foreign debt can be an enormous burden that would eat into a company’s results.
8. Inflation erodes purchasing power. Low inflation indicates stability and companies prosper at such times.
9. Low interest and taxation rates stimulate investment and industry.
10. Domestic savings can accelerate economic growth.
11. The development of a country is dependent on its infrastructure.
12. Budgetary deficits resulting from excessive governmental spending stimulate the economy. It also gives rise to increasing demand and increasing inflation.

Step-2: Economic Cycle
1. Business or economic cycle has a direct impact on the industry and individual companies. It affects investment decisions, employment, demand, and profitability.
2. Four stages of the economic cycle are depression, recovery, boom, and recession.
3. Investors should determine the stage of the economic cycle before investing. Investors should disinvest just before or during a boom.

Step-3: Industry Analysis
1. The importance of the industry can never be understated. The state of the industry will affect company performance.
2. It is important to determine the cycle. These are entrepreneurial or sunrise, expansion or growth, stabilization or maturity, and decline or sunset stages.
3. Investors should purchase in the first two stages and disinvest at the maturity stage.
4. It is better to invest in evergreen industries. The results of cyclical industries are volatile.
5. Investors should consider competition as the greater the competition the lower the profits.
6. It is safer to invest in industries not subject to government controls.
7. Export-oriented industries currently favored by the government.

Step-4:  Company Analysis
1. The final stage of fundamental analysis is company analysis.
2. Areas to be examined are the company, the results, ratios and cash flow.

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What are Blue Chip Stocks?

These stocks are known for their ability to withstand adverse market conditions and yield high returns in favorable market conditions. Mostly, companies with valuable stocks aren't solely premium however conjointly dominant in their trade.

They are enlisted among the best organizations in their respective sectors. Most of the days, a blue-chip stock has records of yielding consistent dividends to its investors over the long run.
These stocks are known for their ability to withstand adverse market conditions and yield high returns in favorable market conditions. Mostly, companies with valuable stocks aren't the only premium but additionally dominant in their industry.

The stock hit new 52-high at intraday at 1,338.00. Meantime, Tita falls 1pc after Morgan Stanley downgrades the stock. Most of these stocks generate stable returns for investors. Because of this consistency, investors are protected from market recessions, inflation, and economic downturns. These companies register consistent annual returns over extended periods of time with a stable debt-to-equity ratio. The average return on equity (ROE), Price-to-Earnings ratio (PE) and also the interest coverage ratio of valuable firms record a steady performance.

For example, Coca-Cola, a blue-chip company, may not experience a recession because it's a menage name and lots of value more highly to drink its products, no matter what economic conditions are like. Nevertheless, stocks of any company can take a hit and lose their blue-chip status.
Many blue-chip stocks, historically, payout dividends to their shareholders. Since blue-chip stocks do not move much at price, they offer dividends to make up for it. Blue-chip stocks have shown that, generally, they make increased and uninterrupted dividend payments over time.
While valuable stocks area units applicable to be used as core holdings within a bigger portfolio, they generally shouldn't be the entire portfolio. A diversified portfolio usually contains some allocation to bonds and cash. Within a portfolio's allocation to stocks, an investor should analyze owning mid-caps and small-caps as well.

● Blue Chip Stocks are thought-about safe investment options as they will endure economic downturns and are not highly volatile. They also present a slow but moderate growth potential. These are typically dividend-paying stocks where the payment is made quarterly. It is advisable to diversify your portfolio when investing in individual stocks, to avoid company risk.
These stocks may not be best suited for the smaller investor owing to the higher price per share increased focus on dividend payments and a
greater drawback risk as against a small upside potential. It is important to be aware of your risk tolerance and financial profile prior to making any investments.
● A valuable refers to a longtime, stable, and well-
recognized corporation.
● Blue-chip stocks are seen as relatively safer investments, with a proven
track record of success and stable growth.
● Blue-chip stocks are still nonetheless subject to volatility and failure, such as with the collapse of Lehman Brothers or the impact of the financial crisis on GM.

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