Reviews

KAKATIYA CEMENT & SUGAR 

Ticker : 500234
FV: { Rs 10 52-Week H/L: Rs 440.85/217.35 

We had recommended Kakatiya Cement in Volume No 34, Issue No 7 (dated Dec. 4, 2017), when the scrip was trading at Rs 409. Our recommendation was based on factors such as high margins and robust PAT growth. In Volume No 34, Issue No 22 (dated Mar 19, 2018) when the scrip was trading at Rs 271, we had recommended investors to reduce exposure to the stock. It was based on its disconnection of cement plant by CPCB, which led to decline in topline and profits in Q3FY18. Also, we expect the performance for Q4FY18 would be low. However, in April, the company resumed its operations at the said plant. But too many headwinds in the sugar industry will affect its performance. Hence, we urge investors to EXIT the scrip 

UFO MOVIEZ INDIA 

Ticker: 539141
FV: { Rs 10  52-Week H/L: Rs 610.95/316 

We had recommended UFO Moviez in Volume No. 34, Issue No 7 (dated Dec. 4, 2017), when the scrip was trading at Rs 486. Our recommendation was based on factors such as robust financial growth over FY13-17 and growth in advertisement segment. Recently, the company launched its first multiplex under its franchise brand named Nova Cinemaz. During 9MFY18, the performance has been muted. The company’s expected merger with Qube Cinema might bring a turnaround in its growth. But this turnaround will take time and can be expected from end of FY19. The Q4 ofFY18 can deliver good numbers on the back of uptick in advertisement from the government. Considering the volatility in the market, we see limited upside in the stock and hence urge investors to EXIT the scrip.