Reviews

BHARAT FORGE 

Ticker : 500493
FV: Rs 2
52-Week H/L: Rs799.65/469.95 

We had recommended Bharat Forge in Volume No 35, Issue No. 4 (dated Nov 19, 2018), when the scrip was trading at Rs 586. Our recommendation was based on factors like strong performance in Q2FY19 and expected commencement of new forging and machining facility. In the North American heavy truck market, the volumes declined by 42 percent YoY in December 2018 and orders dipped by 44 percent YoY. It was the second consecutive month registering low volumes. As Bharat Forge caters to the US market, the dip in volumes would have negative impact on its business. The company expects this to be the beginning of earnings downgrade cycle. Last week, the stock made 23-month low considering the expected downgrading in business. Hence, we recommend investors to EXIT the scrip.

ASTRAZENECA PHARMA INDIA 

Ticker: 506820
FV:Rs 2
52-Week H/L: Rs1960/920 

We had recommended AstraZeneca Pharma in Volume No 35, Issue No. 3 (dated Nov 5, 2018) when the scrip was trading at Rs 1702. Our recommendation was based on factors like introduction of new brands and focus on products for diabetic patients. The company has received permission for import and marketing of Olaparib 100 mg and 150 mg tablets in India for treating ovarian cancer among women. Also, it has recently entered into distribution agreement with Abott Healthcare for distributing diabetes medicine Dapagliflozin. In Q2FY19, despite the flat revenue, its EBITDA and PAT increased by 59.2 percent and 42.8 percent QoQ, respectively. EBITDA margin jumped from 5.7 percent to 9.1 percent on a QoQ basis. Considering all these factors, we urge investors to HOLD the scrip.