Reviews

TATA MOTORS 

Ticker : 500570
FV: Rs 2
52-Week H/L: Rs 468/252.55

We had recommended Tata Motors in Volume no. 34, Issue no. 26 (dated April 26, 2018) when the scrip was trading at Rs 358. Our recommendation was backed by factors like strong performance of the commercial and passenger vehicles and attractive valuations. We had reviewed the stock in issue no. 33 (dated June 4, 2018) when it was trading at Rs 283. We had recommended investors to reduce exposure to the stock on poor numbers delivered in Q4FY18. Since the last few weeks, the stock price has corrected as JLR’s future operations in the UK might be curtailed due to Brexit. As part of its strategy, the company is planning huge investments leading to negative cashflows till FY21. Thus, over the short-term period, we urge investors to EXIT the scrip, but one can hold with a long-term prospective.

VINATI ORGANICS 

Ticker: 524200
FV: Rs 2
52-Week H/L: Rs 1122/760.05 

We had recommended Vinati Organics in Volume no. 34, Issue no. 31 (dated May 21, 2018) when the scrip was trading at Rs 980. Our recommendation was based on factors like modest performance in Q4FY18 and capacity expansion. Owing to the exit of its competitor and growing demand for ATBS, the company is expanding its ATBS capacity from 26,000 TPA to 30,000 TPA, requiring an additional capex of ~USD 5.2 million. The key products of the company have diverse applications, leading to the growth in demand and, thereby, traction in the topline. However, due to volatile crude oil prices,the margins would continue to remain under pressure. The company is planning to widen its product portfolio and launch some new products. Considering these factors, we urge investors to HOLD the scrip