AGARWAL PACKERS EYES INVESTORS Markets keenly await roll out of GST Market Khabar STOCK SCAN FUTURES & OPTIONS

Mumbai, June 25: Logistics firm Agarwal Packers & Movers has said it will “very soon” bring on board a strategic investor after meeting certain revenue targets and may go for an IPO in the next three years.

The Delhi-based firm has also drawn up a `650crore investment plan for the next three years. “We are waiting for the topline to get better,” the family-owned firm’s chairman Ramesh Agarwal said.

He said the company clocked a revenue of `500 crore last year and it plans to induct a “strategic partner” once the revenue crosses `550-600 crore. The share sale to a strategic investor would be “very soon”, Mr Agarwal said.

The company, which is into surface transport and door-to-door delivery, was planning to raise up to `100 crore by offloading 10 per cent stake to a private equity investor two years ago, but Mr Agarwal said he has abandoned those plans and would like to have a strategic investor rather than a financial one.

But he did not disclose how much equity he is ready to part with or how much would be valuation. The firm is targeting to take the revenue to `1,000 crore over the next three years, and he said once it reaches that level, it will be looking at a share sale.

True to predictions, on the back of news flow on GST implementation, FIIs attitude and progress of monsoon; Indian markets were in consolidation mode during the week ended.

Closing divergently, the Sensex ended 81 points higher at 31,138 and the Nifty closed 13 points lower at 9,575. Fall in the BSE mid-cap and smallcap indices by 1.5 per cent and 1.8 per cent indicates “tiredness” of bulls. It is pertinent to observe that FIIs were net sellers and DIIs were net buyers during the week.

Prime Minister Narendra Modi’s visit to US may provide clues over resolution of H-1B visa imbroglio and some contentious trade issues.

All eyes are on the implementation of GST from the midnight of June 30, so that it should be effective as per the deadline set by the GST Council.

Tax experts indicate that the impact on automobile, transportation, pharmaceutical and FMCG sectors can be positive while it could be negative for textiles industry and services like technology, telecom, banking, insurance etc.

Observers feel that a sharp fall is possible only if monsoon disappoints or there is delay in the revival of economy or some negative global event.

Q1 earnings may provide cues on post demonetisation recovery of economy.

Near term trend will be dictated by the implementation of GST, progress of monsoon, the dollar-rupee exchange rate, investment pattern of foreign institutional investors and international crude oil prices.

For the week ahead, chartists predict trading range of 30,750-31,500 and 9,425-9,750 for the indices. Key supports for the indices are at 30,925 & 30,750 and 9,500 & 9,425.

Rasandik Engineering Industries India is engaged in manufacturing of sheet metal components for cars, trucks, tractors, two wheelers and three wheelers; Die & Tools; and TWB. It supplies fuel tanks to a range of automobiles. Its white goods are airconditioner body stampings and assemblies, refrigerator body stampings and washing machine body stampings. Buy on declines for target price of `250.

Graphite India is engaged in the manufacturing graphite electrodes, graphite equipments, steel, glass reinforced plastic (GRP) pipes and tanks and generation of hydel power. The company operates through three segments: Graphite and Carbon, Steel and Others. It is the single largest manufacturer of High Speed Steel (HSS) in the country. HSS is used in the manufacture of cutting tools such as drills, taps, milling cutters, reamers, hobs, broaches and special form tools. Buy for target price of `240 in medium term.

Control Print is engaged in the coding and marking system along with related components, accessories, consumables and services. Its product portfolio includes continuous inkjet printers (CIJ), drop-on-demand valvejet printers (LCP), thermal transfer over-printers (TTO), thermal drop-on-demand inkjet printers (TIJ), laser coders, thermal ink coders, high resolution piezo drop-on-demand inkjet printers (HR), and related consumables and spares. Increasing adoption of TIJ, TTO, and LCP printers is expected to drive the company growth higher. The Company caters to a range of industries, such as personal care, food and beverage, FMCG, pharma, construction materials, extruded products. Buy for target price of `500. Ahead of the settlement week brisk stock specific trading was seen in the derivative segment. Volatility is likely in the coming truncated week due to expiry of June derivative contracts.

The maximum call open interest concentration is at 9,700 calls and around 9,500 puts indicating strong resistance and support at these levels.

Sentiment indicators like implied volatility, open interest, put/call ratio and VIX suggest mild correction from current level. Track rollovers for spotting winners and losers of coming derivative series.

Changes initiated by Sebi in client margin funding to be implemented from July 1 will have impact on trading volumes indicate broking houses. With the shadow of GST looming large, expect strong sectoral moves say observers.

Strong buying interest was seen in FMCG space. Stay invested in HUL, Dabur, ITC and Godrej Consumer.

US visit may trigger activity in technology counters. Use corrections to buy HCL Tech and TCS.

Resilience in cement stocks will continue for some more time say industry watchers. Buy on declines ACC, Ambuja Cements, India Cements and Ultratech.

Oil marketing companies IOC and BPCL witnessed good selling at higher levels. Sentiment over dynamic pricing of fuels looks short lived.

Stocks looking good are Ambuja Cements, Dabur, ITC, ICICI Bank, NBCC, Petronet LNG, Reliance Capital, Sun Pharma and Tata Elexi. Chartist’s Corner: A trader cannot hope to eliminate risk, he (or she) must learn to live with risk. Emotional highs and lows are key levels when the price level itself is clearly driven by strong emotion.

C. Kutumba Rao is an avid follower of stock markets. This newspaper is not liable for decisions made on the basis of this column. Views expressed in the article are personal views of the writer. ■ ■ ■

THERE HAS been a renewed interest in the logistics sector, which stands to benefit under the GST regime

MANY PRIVATELY OR closely held firms are looking to raise money through financial or strategic investors