Gladiator Stocks Scrip I-Direct IDirect Code Action Target Stoploss Upside Gateway Distriparks GATDIS Buy in the range of 280-289 338 257 19% Time Frame: 6 Months Research Analysts Dharmesh Shah dharmesh.shah@icicisecurities.com Pabitro Mukherjee pabitro.mukherjee@icicisecurities.com Nitin Kunte, CMT nitin.kunte@icicisecurities.com com Vinayak Parmar vinayak.parmar@icicisecurities.com com Dipesh Dagha dipesh.dagha@icicisecurities.com July 6, 2017
Gateway Distriparks (GATDIS): Long term falling channel breakout... CMP: 288.00 Buying Range: 280.00-289.00 00 289 00 Target: 338.00 Stop loss: 257.00 Upside: 19% Stock Data 52 Week High / Low 316.55/210.35 50 days EMA 258 200 days EMA 258 52 Week EMA 262 Face Value ( ) 10 Market Capitallisation ( Cr.) 3150 *Recommendation given on i-click to gain on July 06, 2017 at 10:34 hrs Stock price vs. BSE 500 320 300 280 260 240 220 200 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 GDL BSE500 13,800 12,800 11,800 10,800 9,800 Price performance in last five years 160% 120% 80% 40% 0% -40% 6% 0% 151% -8% -24% Year 2012 2013 2014 2015 2016 Source: Bloomberg, BSE, ICICIdirect.com Research Technical View Gateway Distriparks is a logistics facilitator with three verticals: container freight stations (CFS), inland container depots (ICD) with rail movement and cold chain storage & logistics. The share price of Gateway Distriparks is emerging out of a 30 months corrective phase. The prolonged correction has the underpinning characteristics of a secondary correction within the larger uptrend. In the last eight months, the stock has been consolidating in the broad range of 210-280 indicating a base formation and accumulation by stronger hands ahead of the impending reversal. Breakout past channel augurs well... The entire decline since March 2015 has occurred in a well defined falling channel marking the lower highs and lower lows. The strong up move in current week has seen the stock post a resolute breakout past upper band of the falling channel placed at 257 levels, thereby triggering a major structural turnaround implying end of the secondary corrective phase and resumption of primary uptrend thereby offering fresh entry opportunity Base formation at key value area suggests accumulation by stronger hands The stock witnessed a stupendous rally during 2013-15 rallying from a low of 102 in October 2013 to its life-time high of 458 in January 2015. After rallying four folds in a span of just 16 months, the stock entered into corrective mode to work off the excesses developed in the major up move. The corrective price decline off the January 2015 highs got anchored near key value area of 220-230 being the confluence of the following technical parameters: The previous breakout area of August 2014 placed around 230 levels 61.8% retracement of the preceding major up move from 102 to 458 is placed at 235 levels The rising 52 weeks EMA, which has acted as a major support base for the stock was also placed around 240 level The upper band of the recent falling channel breakout area, which also coincides with the 61.8% retracement of the current up move from 230 to 292 placed around 257 levels is likely to act as major support in the medium term Time wise behaviour also substantiates robust price structure The stock has already spent 30 months to retrace just 61.8% of the previous 16 months up move from 102 to 458. Limited price wise correction and extended time wise consolidation highlight the underlying strength in the trend Momentum oscillators supports positive price bias... Among oscillators, the monthly 14 period s RSI has rebounded from the bull market support reading of 40 and recently generated a bullish crossover above its nine period s average signalling strength in the price trend and augurs well for continuance of bullish momentum. Conclusion Based on the aforementioned observations, we expect the stock to continue with its current up move and retrace at least 50% of the entire corrective decline from 458 to 210 placed around 338 levels in the medium term 2
Gateway Distriparks (GATDIS): Monthly Bar Chart Breakout from long term falling channel signals resumption of up move and offers fresh entry opportunity 16 months rally 458 30 months corrective consolidation 50% retracement @ 338 210 52 Weeks EMA 102 Base formation around 220-230 230 levels -Previous breakout area - 61.8% retracement of previous rally - the long term 52 weeks EMA Monthly RSI has recently generated a bullish crossover thus supports the positive bias in price Source: Bloomberg, ICICIdirect.com Research 3
Strategy Follow up Open Recommendations: Date Scrip Name Rec Price Target Stoploss CMP Return till date (%) 21-Apr-17 Cera Sanitaryware 2934 3680 2520 3047 3.9% 27-Apr-17 Nestle India 6520 7750 5875 6960 6.7% 9-May-17 Larsen & Toubro 1705 2035 1540 1702-0.2% 11-May-17 Rallis India 244.5 295 215 244-0.2% 30-May-17 Zee Entertainment 510 595 510 502-1.6% 31-May-17 17 Mahindra CIE 240 290 212 244 1.7% 8-Jun-17 Hindalco 197 238 177 199 1.0% 12-Jun-17 ABFRL 185 231 156 174-5.9% 13-Jun-17 Info edge 1000 1210 895 1020 2.0% 29-Jun-17 Bharti Airtel 380 432 352 380 0.0% Summary Performance - Recommendations till date Open Recommendations 10 Total Recommendations 172 Yield on Positive recommendations 19.0% Closed Recommendations 162 Yield on Negative recommendations -8.0% Positive Recommendations 122 Strike Rate 75% 4
Notes It is recommended to enter in a staggered manner within the prescribed range provided in the report Once the recommendation is executed, it is advisable to keep strict stop loss as provided in the report on closing basis. The recommendations are valid for six months and in case we intend to carry forward the position, it will be communicated through separate mail. Trading portfolio allocation It is recommended to spread out the trading corpus in a proportionate manner between the various technical research products Please avoid allocating the entire e trading corpus to a single stock or a single product segment Within each product segment it is advisable to allocate equal amount to each recommendation For example: The Daily Dil Calls Cll product carries 3 to 4 intraday recommendations. It is advisable to allocate equal amount to each recommendation 5
Recommended product wise trading portfolio allocation Product Allocations Product wise Max allocation in allocation 1 Stock Number of Calls Return Objective Frontline Stocks Mid Cap Stocks Duration Daily Calls 8% 2-3% 3-4 Stocks 0.5-1% 2-3% Intraday Stocks on the Move 6% 3-5% 7-10 Per Months 7-10% 10-15% 3 Months Weekly Calls 8% 3-5% 1-2 Stocks 5-7% 7-10% 1 Week Weekly Technicals 8% 3-5% 1-2 Stocks 5-7% 7-10% 1 Week Monthly Call 15% 5% 2-3 Stocks 7-10% 10-15% 1 Month Monthly Technical 15% 2-4% 5-8 Stocks 7-10% 10-15% 1 Month Techno Funda 15% 5-10% 1-2 Stocks 10% and above 15% and above 6 Months Gladiator Stocks 15% 5-10% 1-2 Stocks 15% and above 20% and above 6 Months Cash 10% - 100% 6
Pankaj Pandey Head Research pankaj.pandey@icicisecurities.com ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC Andheri (East) Mumbai 400 093 research@icicidirect.com 7
Disclaimer ANALYST CERTIFICATION We /I, Dharmesh Shah, Dipesh Dagha, Nitin Kunte, Pabitro Mukherjee, Vinayak Parmar Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. Terms & conditions and other disclosures: ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities Limited is a SEBI registered Research Analyst with SEBI Registration Number INH000000990.ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. ( associates ), the details in respect of which are available on www.icicibank.com ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining i i a financiali interest in the securities ii or derivatives i of any companies that the analysts cover. The information and opinions in this section have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities. While we would endeavour to update the information herein on reasonable basis, ICICI Securities is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non- rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances. The research recommendations are based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. These research recommendations and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. ICICI Securities will not treat recipients as customers by virtue of their receiving these recommendations. Nothing in this section constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed herein may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of these recommendations. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice. 8
Disclaimer ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months. ICICI Securities or its associates might have received ed any compensation from the companies mentioned ed hereinei during the period preceding twelve months from the date of these recommendations for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction. ICICI Securities or its associates might have received any compensation forproductsorservicesotherthaninvestmentbankingormerchant banking or brokerage services from the companies mentioned herein in the past twelve months. ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates or its Analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts and their relatives have any material conflict of interest at the time of publication of this reports. It is confirmed that Dharmesh Shah, Dipesh Dagha, Nitin Kunte, Pabitro Mukherjee and Vinayak Parmar, Research Analysts giving these recommendations have not received any compensation from the companies mentioned herein in the preceding twelve months. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions ICICI Securities or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the company/companies mentioned herein asof the last day of the month preceding the publication i of these research recommendations. Since Associates (ICICI group companies) of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned herein. It is confirmed that Research Analysts do not serve as an officer, director or employee or advisory board member of the companies mentioned herein. ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented herein. Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned herein. We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities. This report or recommendations are not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. 9