Market View 19/03/2015

Capital First Ltd (CAFL IN) – QIP Details: Issue Size : USD 40.05 mln with option to upsize to USD 48.06 mln , Indicative Size: 6,410,257 to 7,692,307 Equity Shares SEBI Minimum Floor Price : INR 409.90 Indicative Issue Price : INR 390 Closing Price: INR 397.60 on NSE as on 19TH MARCH 2015 Dilution (Post Issue) : 7.14 % to 8.45%

BUY TTK Prestige MOTILAL ON TTK PRESTIGE - INITIATING COVERAGE We expect revenue to grow at a CAGR of 23% over FY15-17, led by 31% CAGR in nonstick cookware

business, 23% CAGR in pressure cooker business, and 17% CAGR in appliances business. With operating leverage, we expect EBITDA to post 35% CAGR and PAT to post 41% CAGR over FY15-17. Led by better asset utilization, we expect return ratios to improve (RoCE to improve from 23% to 34% and RoE to improve from 22% to 24%). Given minimal reinvestment needs, annual free cash flow should improve to INR1.7b over FY15-17. The stock trades at 30.8x FY16E and 21.7x FY17E EPS. We initiate coverage with a Buy rating with a target price of INR5,000 valuing the stock at 30x FY17E EPS of INR167.5.

>Nifty call options added 1.06 lac lots in open interest & put options added 0.43 lac lots in open interest (All Expiry). Most activity seen in Mar15, 8800 call traded 18.49 lac lots, carrying open interest of 2.16 lac lots, witnessed open interest increased by 9.05% & Mar15, 8700 put traded 15.74 lac lots, carrying open interest of 1.38 lac lots, witnessed open increased by 3.44% 

 >Bank Nifty call options added 7908 lots in open interest & put options reduced 13023 lots in open interest. (All Expiry) Most activity seen in Mar15, 19500 call traded 1.37 lac lots, carrying open interest of 0.25 lac lots, witnessed open interest increased by 17.8% & Mar15, 19000 put traded 0.94 lac lots, carrying open interest of 0.15 lac lots, witnessed open interest decreased by 27.52% 

 *GAIL:- activity seen in 390 call added by 20.33% open interest. Short Covering in stock, closed at 389.55 up by 2.13%. Future open witnessed decreased by 0.9%. Highest Open interest carrying in 390 Put of 217 lots i.e. 12.99% & 390 Call of 315 lots i.e. 18.85%, total option open interest of 1671 lots.

 *IOC:- activity seen in 350 call reduced by 20.17% open interest. Long Buildup in stock, closed at 350.65 up by 0.2%. Future open witnessed increased by 0.38%. Highest Open interest carrying in 360 Put of 101 lots i.e. 7.26% & 360 Call of 427 lots i.e. 30.68%, total option open interest of 1392 lots. 

*COLPAL:- activity seen in 2000 call added by 17.11% open interest. Short Covering in stock, closed at 2040.25 up by 0.8%. Future open witnessed decreased by 0.42%. Highest Open interest carrying in 2050 Put of 44 lots i.e. 8.32% & 2150 Call of 97 lots i.e. 18.34%, total option open interest of 529 lots. 

*IBREALEST:- activity seen in 75 put reduced by 15.05% open interest. Long Unwind in stock, closed at 70.1 down by 4.16%. Future open witnessed decreased by 2.68%. Highest Open interest carrying in 75 Put of 44 lots i.e. 2.55% & 85 Call of 433 lots i.e. 25.1%, total option open interest of 1725 lots.

 *JUSTDIAL:- activity seen in 1400 call added by 11.74% open interest. Short Covering in stock, closed at 1400.75 up by 10.6%. Future open witnessed decreased by 7.45%. Highest Open interest carrying in 1300 Put of 250 lots i.e. 11.49% & 1400 Call of 279 lots i.e. 12.83%, total option open interest of 2175 lots