Index MarketView 1CompanyUpdate 2AroundtheEconomy 3KnowledgeCorner 3MutualFund 4CommodityCorner5ForexCorner 6ReportCard 7 Editor&ContributorMargiShahSpecialContributorsAsheshTrivediAdityaNaharForsuggestions,feedbackandqueriesjstreet@jhaveritrade.com

Market View: RBI is expected to cut the rate

Considering the global environment and local factors, the RBI is expected to cut the rates on 29th September, 2015. The market has already factored in the 25bps cut in advance. Meanwhile Prime Minister Modi is successful in convincing the western world about the optimism he has created for the economy in the country and outside. The Silicon Valley Stal-warts are more or less agreeing about the opportunities thrown by the campaign Make in India and Digitalize India. Defense industry in US is also enthralled by the defense strategy adopted by the Indian government. Considering the fragile global outlook and lingering uncertainty in China coupled with continuous selling by FII have made the strategy of selecting the stocks more important. Even within this challenging atmosphere, some companies have achieved a turnaround performance in the June quarter. On back of lower commodity prices, increasing operational efficiency and very tight financial strategy some companies have performed wonderfully in the last one year and duly rewarded by the market. For e.g. Britannia Industries, CCL Product, Essell Propack, Emami, Amrutanjan, Vadilal, Kokuyo Camlin, Cipla and Dishman Pharma. Those investors, who invest with medium to long term outlook and are look-ing for midcap turnaround stories can study this interesting stocks (This is not a recommenda-tion but a proposal to study the stocks). The recent Rupee depreciation has clearly put the Technology sector on the investment horizon. The companies having good earning in Dollar terms in their overall revenue are clearly going to benefit the most. The only threat will be slowing world economy and shrinking IT budget by the big international corporate giants. Jennet Yellen has also expressed her feelings about the rate hike in the year 2015 depending on the flow of data. Considering all this events and a long vacation in the Chinese markets & Indian market will remain volatile within the range of 7700 to 8100. Kamal Jhaveri MD- Jhaveri Securities

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Vol.: 26228th September,2015

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Company Basics

BSE Code 503806

NSE Symbol SRF

EQUITY (` in Cr.) 57.42

MKT.CAP (` in Cr.) 6582.92

Financial Basics FV (`) 10.00 EPS (`) 52.74 P/E (x) 21.74 P/BV (x) 2.90 BETA 1.3170 RONW (%) 10.52

Share Holding Pattern Holder's Name % Holding Foreign 16.04 Institutions 12.59 Promoters 52.38 Non Prom. 0.00 Public & Others 15.17 Government 3.82

Company overview SRF Limited is multi-product, multi-business organization and industrial intermediate segment. The company was incorporated in 1970. The business divisions of the company include Technical Textile Business, Chemical Business, Packaging Films Business and Engineering Plastics Business. The company has 12 production plant across the globe. Out of 12 nine in India and the remaining in Dubai, South Africa, Thailand. It is market leader in majority of its product. SRF has strong presence in international market with exporting around 75 countries. Investment Rational SRF is one of the leading and sole domestic supplier of HFC 134 a and growth in passenger vehicles spur sales

This elements contributed 23% of SRFs fluorochemicals revenues. The market-size of HFC-134a in India is 8.0KTPA, which is expected to rise with the rise of automobile and refrigerator sales. We estimate HFC-134as consumption to clock 10.1% CAGR till FY20 as sales of passenger vehicles pick up from FY17 (HFC-134a gas is used as refrigerants in cars). With a capacity of 17.5KTPA, SRF is the sole domestic producer of R-134a and its market share increased to 41% in FY15. Imports have broadly remained flat at ~4,700 MT during the past 5 years.

Specialty Chemical is on strong footing

SRF is on a strong footing in Specialty Chemicals, as it is knowledge driven and has high entry barriers. We expect the business to grow at a CAGR of 28% over FY15-17 to `1005.40 Cr. Given that it is a niche business, we believe it will continue to enjoy PBIT margin of 35%.

Packaging Business has a good strength The total demand for films in India is 360,000 MT/year and is growing at 10%. Capacity utilization swings between 73% and 86%. Currently, the industry is operating at peak utilization of ~86%. With higher capacity utilization, film manufacturers have begun enjoying higher margins.

Valuation : SRF Ltd. is currently trading at 15.74x FY16E EPS of Rs.72.80 and 12.51x FY17E EPS ofRs. 91.60, valued the stock at 15xFY17E (three year average) with the target price of Rs. 1374.

Company Update : SRF Ltd.

Vol.: 26228th September,2015

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Weekly Market Recap :

On the global front, European Central Bank (ECB) Chief Economist Peter Praet on Monday, 21 September 2015, reiterated the bank's readiness to modify its trillion-euro bond-buying program should economic turbulence merit action.

In China, latest data showed that a preliminary measure of Chinese factory output fell to its lowest level in six and a half

years in September 2015. In the United States, St. Louis Fed President James Bullard and Atlanta Fed President Dennis Lockhart separately made

the case for an increase in US interest rates this year.

Market Eye Week ahead : Among key domestic events lined up for the week, the Reserve Bank of India's (RBI) fourth bi-monthly monetary policy

review for the year 2015-16 is scheduled on Tuesday, 29 September 2015. The RBI had kept its benchmark lending rateviz. the repo rate unchanged at 7.25% after a monetary policy review on 4 August 2015.

Shares of automobile companies will be in focus as companies start announcing monthly sales volume data for

September 2015 from Thursday, 1 October 2015. The Nikkei India Manufacturing PMI data for the month of September 2015 is due on Thursday, 1 October 2015. The

seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) declined to 52.3 in August from 52.7 inJuly.

KEY EVENTS/FACTORS TO WATCH 1. Tues: RBI monetary policy 2. Thurs: September auto sales data

Systematic Risk

The risk inherent to the entire market or an entire market segment. Systematic risk, also known as un diversifiable risk, volatility or market risk, affects the overall market, not just a particular stock or industry. This type of risk is both unpredictable and impossible to completely avoid. It cannot be mitigated through diversification, only through hedging or by using the right asset allocation strategy.

For example, putting some assets in bonds and other assets in stocks can mitigate systematic risk because an interest rate shift that

makes bonds less valuable will tend to make stocks more valuable, and vice versa, thus limiting the overall change in the portfolios value from systematic changes. Interest rate changes, inflation, recessions and wars all represent sources of systematic risk because they affect the entire market. Systematic risk underlies all other investment risks.

Around The World

Vol.: 26228th September,2015

Knowledge Corner :

Mutual Fund Corner

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Source : - www.valueresearchonline.com

Fund CNX Nify (Rebased to 10,000)

Fund Name Scheme Name Birla Sun Life MNC Fund

AMC Birla Sun Life Asset Management Company

Type Others

Category Open-ended and Equity

Launch Date December 1999

Fund Manager Ajay Garg

Net Assets (` In crore ) Rs. 2400.4 crore as on Aug 31, 2015

Fund Performance v/s S&P CNX Nifty

Top 10 Sector Break-Ups Fund (%)

Automobile 20.96 Financial 17.41 FMCG 14.87 Healthcare 12.16 Engineering 10.74 Chemicals 9.78 Cons Durable 4.15 Services 3.87 Construction 1.85 Technology 0.82

Fund Style

Investment Style Growth Blend Value

Large

Medium

Small

Capitalization

Composition (%) Equity 96.83

Debt 4.57

Cash -1.40

Risk Analysis Volatility Measures Standard Deviation 16.42

Sharpe Ratio 1.58 Beta 0.79 R-Squared 0.48 Alpha 19.37

Vol.: 20418th August, 2014

Vol.: 26228th September,2015

History 2012 2013 2014 2015 NAV(Rs) 267.14 294.26 502.89 589.14

TotalReturn(%) 42.37 10.15 70.90 17.15

+/CNXNifty 14.67 3.39 39.51 20.78

+/CNXMNC 14.08 2.41 28.43 9.86

Rank(Fund/Category) 7/31 6/32 6/55 -

52WeekHigh(Rs) 267.14 294.26 502.89 630.80

52WeekLow(Rs) 187.34 235.76 270.73 503.55

NetAssets(Rs.Cr) 364.13 412.78 852.49 -

ExpenseRatio(%) 2.33 2.91 2.72 -

Commodity Corner

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Vol.: 20418th August, 2014Vol.: 26228th September,2015

FUNDAMENTAL:Gold prices last week ended with around one percent gains as a weak U.S. dollar sparked short covering whereas silver prices set-tled flat as upbeat U.S. second quarter growth data added to expectations for a rate hike before the end of the year. However gains were limited as in-vestors worried over the timing of a U.S. interest rate hike. Federal Reserve Chair Janet Yellen said after markets closed on Thursday that she ex-pected the central bank to begin raising rates later in 2015, as long as inflation remained stable and the U.S. economy was strong enough to boost employment. It marked the first time Yellen personally supported a 2015 rate hike since July. Yellen's stance represents a stark contrast from her position last week when the Federal Open Market Committee only disclosed that 13 of 17 of its members were in favor of raising rates this year. The data prompted short covering and safe-haven bids amid worries about global economic growth, which could delay the tightening of U.S. monetary policy. U.S. equities came under pressure. Data on Friday supported the view that the Fed could begin raising rates this year. U.S. gross domestic product rose at a 3.9 percent annual pace in the second quarter, up from 3.7 percent reported last month. Earlier in the month, the Fed delayed a long-anticipated rise in U.S. rates, citing concerns over the global economy and improving investor sentiment towards gold. Holdings in SPDR Gold Trust, the world's top gold- backed exchange-traded fund, rose for a fourth straight session on Friday. Gold prices have been well-supported since the Fed decided to leave short-term interest rates unchanged last week, amid concerns over soft inflation and the effects of recent market volatility on the U.S. economy. Russia raised its gold holdings by another 29.5 tonnes in August, adding to its reserves for a sixth straight month, while Jordan and United Arab Emirates both emerged as buyers in July, according to International Monetary Fund data on Thursday. Several Federal Reserve officials are scheduled to speak this week, keeping the focus of the bullion market firmly on U.S. monetary policy. RECOMMENDATION : SELL GOLD @ 27000 SL 27450 TGT 26550-26100.SELL SILVER @ 36600 SL 37200 TGT 35800-35100. FUNDAMENTAL: Gold prices last week ended with around one percent gains as a weak U.S. dollar sparked short covering whereas silver prices settled flat as upbeat U.S. second quarter growth data added to expectations for a rate hike before the end of the year. However gains were limited as investors worried over the timing of a U.S. interest rate hike. Federal Reserve Chair Janet Yellen said after markets closed on Thursday that she ex-pected the central bank to begin raising rates later in 2015, as long as inflation remained stable and the U.S. economy was strong enough to boost em-ployment. It marked the first time Yellen personally supported a 2015 rate hike since July. Yellen's stance represents a stark contrast from her position last week when the Federal Open Market Committee only disclosed that 13 of 17 of its members were in favor of raising rates this year. The data prompted short covering and safe-haven bids amid worries about global economic growth, which could delay the tightening of U.S. monetary policy. U.S. equities came under pressure. Data on Friday supported the view that the Fed could begin raising rates this year. U.S. gross domestic product rose at a 3.9 percent annual pace in the second quarter, up from 3.7 percent reported last month. Earlier in the month, the Fed delayed a long-anticipated rise in U.S. rates, citing concerns over the global economy and improving investor sentiment towards gold. Holdings in SPDR Gold Trust, the world's top gold- backed exchange-traded fund, rose for a fourth straight session on Friday. Gold prices have been well-supported since the Fed decided to leave short-term interest rates unchanged last week, amid concerns over soft inflation and the effects of recent market volatility on the U.S. economy. Russia raised its gold holdings by another 29.5 tonnes in August, adding to its reserves for a sixth straight month, while Jordan and United Arab Emirates both emerged as buyers in July, according to International Monetary Fund data on Thursday. Hedge funds and money managers raised their bullish bets in COMEX gold futures and in the week to Sept. 22, U.S. Commodity Futures Trading Commission data showed on Friday. Several Federal Reserve officials are scheduled to speak this week, keeping the focus of the bullion market firmly on U.S. monetary policy. RECOMMENDATION : SELL COPPER @ 342 SL 355 TGT 334-325.SELL ZINC @ 109.00 SL 112.50 TGT 105.50-102.00. SELL NICKEL @ 668 SL 90 TGT 640-620.SELL ALUMINIUM @ 106.00 SL 108.50 TGT 102.50-100.00. SELL LEAD @ 112.00 SL 115.00 TGT 108.00-105.00. FUNDAMENTAL: Crude oil prices rallied amid indications U.S. oil drillers are cutting back on production following a collapse in prices over the summer. Industry research group Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. decreased by four last week to 640, the fourth straight weekly decline. A lower U.S. rig count is usually a bullish sign for oil as it signals potentially lower production in the future. Crude oil prices have been under heavy selling pressure in recent months, as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated. Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production. The EIA said gasoline stockpiles rose 1.4 million barrels, compared with the Reuters poll which called for a 819,000-barrel gain. In crude oil, market intelligence firm Genscape added to positive sentiment by estimating a draw of nearly 810,000 barrels in the week ending Sept. 15 from storage tanks at Cushing, Oklahoma, the main delivery point for U.S. crude futures, according to sources who have seen the data. Whereas natural gas prices dropped last week as demand for the fuel was likely to remain limited after meteorologists predicted mild fall weather in much of the U.S. in the weeks ahead. Demand for natural gas is expected to be moderate this week as cooler weather moves across the eastern part of the U.S. Meanwhile, weather in the west will be warmer before cooling off as the week progresses. Data released Thursday showed that U.S. natural gas supplies rose much more than expected last week. According to the Energy Information Administration, natural gas storage increased by 106 billion cubic feet, above forecasts for a gain of 96 billion cubic feet. Supplies rose by 96 billion cubic feet in the same week last year, while the five-year average change is an increase of 83 billion cubic feet. The EIA's next storage report slated for release on Thursday, October 1 is expected to show another hefty build of approximately 100 billion cubic feet for the week ending September 25. Recommendation : BUY CRUDE OIL @ 2960 SL 2850 TGT 3090-3200. SELL NAT. GAS @ 178 SL 185 TGT 172-165.

BULLION

BASE METALS

ENERGY

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Commodity Corner

USD/INR

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Forex Corner

EUR/INR

GBP/INR

JPY/INR

Market Eye Week ahead :

The USD INR pair moved in line with our expectations inched up higher but ended with a doji candle which indicates lack of confidence among the bulls at higher levels. 66.45 is the immediate resistance on the upside and prices are likely to reverse the direction from the same.

We expect the US dollar to meet supply pressure on rallies against the rupee. Any pullback in the USD/INR October

contract should be used to sell. Sell USD/INR September futures in the range of 66.82-66.92 with target 65.90-65.70.'

Level S2 S1 CP R1 R2 High Low Close

USD/INR 65.79 65.37 66.04 66.46 66.71 66.29 65.62 66.21

Level S2 S1 CP R1 R2 High Low Close

JPY/INR 54.75 54.12 55.10 55.73 56.08 55.45 54.47 55.38

Level S2 S1 CP R1 R2 High Low Close

GBP/INR 100.37 99.72 101.43 102.08 103.14 102.50 100.79 101.01

Level S2 S1 CP R1 R2 High Low Close EUR/INR 73.58 72.73 74.14 74.99 75.55 74.70 73.29 74.43

Market Recap :

Vol.: 26228th September,2015

The Indian rupee appreciated against the dollar in early trades on Monday, 28 September 2015 on fresh selling of the American currency by exporters.

In the spot currency market, the Indian unit was last

seen trading at 66.07. On Thursday, the rupee had dropped 18 paise against the US dollar to close at 66.16.

The dollar index, which measures the US currencys

strength against major currencies, was trading at 96.167, down 0.12% from its previous close of 96.269.

Nifty Closed fell 122 points last week and ended the week at 7868 levels. Nifty has strong resistance at 7930 and 8000.

We expect Nifty to test 7800 7725 - 7660 on downside. Weekly Support comes at 7600. Macroeconomic data, trend in global markets, investment by foreign portfolio investors (FPIs), the movement of rupee

against the dollar and crude oil price movement will dictate trend on the markets in the week ahead.

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J Street Recommendations Report Card

Top Fundamental Stocks

Stocks Rec. Date CMP on Rec. CMP Target Absolute Return @

CMP Status

SunPharma 03/07/2015 831 861 1041 4% Buy

InfiniteComputerSol. 20/07/2015 190 168 255 -12% Buy

NitinSpinnersLtd. 06/07/2015 79 57 94 -27% Buy

BankofBaroda 01/06/2015 163 184 217 13% Buy

AmbikaCottonMills 18/05/2015 880 854 1149 -3% Buy

SadbhavEngineering 04/05/2015 298 283 430 -5% Buy

CARELtd. 20/04/2015 1666 1117 2250 -33% Buy

SetcoAutomotiveLtd. 30/03/2015 242 230 304 -5% Buy OmkarspecialityChemicals

16/03/2015 152 173 251 14% Buy

DHFL 16/02/2015 252 208 368 -17% Buy

TVTodayNetwork 27/01/2015 222 243 337 9% Buy

M&M 12/1/2015 1238 1221 1452 -1% Buy

HavellsIndia 27/10/2014 274 246 346 -10% Buy

AllCargoLogistics 05/08/2014 260 293 342 13% Buy

PTCIndiaFin.Ser. 07/07/2014 39 43 45 11% Buy

AdaniPort 05/07/2014 280 307 347 10% Hold

Ahluwaliacontracts 24/08/2015 235 256 368 9% Buy

L&T 05/07/2014 1750 1430 1866 -18% Buy

SRFLtd. 21/09/2015 1140 1122 1374 -2% Buy

It'snotimportantwhetheryouarerightorwrong,Itsabouthowmuchmoneyyoumakewhenyou'rerightandhowmuchyoulosewhenyou'rewrong.

Vol.: 26228th September,2015

Vol.: 26228th September,2015