Money Times Talk
02 October 2022

• *GSFC* is one of the best fertilizers and chemicals stock ignored by investors. At Rs. 130, it quotes at a PE multiple of just 4.5 against the industry average PE of 12.86 and quotes below its book value of Rs. 296. An excellent buy.
• *ONGC*, the largest oil-producer, is quoting very low and must be added at every decline. It is also a very good dividend play,
• *Godrej Properties* acquires a 7-acre land Bengaluru’s Indira Nagar extension. Positive for this growing company. Add.
• *DCM Shriram Industries* business verticals of Sugar & distillery, Rayon & Nylon, Organic Chemicals are already faring well. But the new leg-up comes from its newly permitted Drones & Defence goods vertical. Buy for impressive gains.
• Time is running out for DMRC to pay around Rs. 4000 cr. to *Reliance Infrastructure*. A big booster for the stock. Buy.
• *HFCL’s* state-of-the-art Polymer Compounding facility to produce Polyolefin compounds used in manufacturing Optical Fiber Cables is a game changer and big positive. Add.
• Commercial vehicle loan provider, *Shriram Transport Finance*, to raise debt by Redeemable NCDs for onward financing. Add.
• *Paras Defence, HAL and BEL* to benefit from contracts to weaponize Israeli drones under ‘Make in India’ and the IAF’s ‘Project Cheetah’. Add for long term.
• Newly listed *Harsha Engineers* is being accumulated by interested circles on expectations of its excellent working going forward. Add.
• The Bombay High Court has quashed irrelevant and false FIRs registered against *Indiabulls Housing Finance*. Having gone into stronger hands, this is a good long-term haul. Add.
• *Ramco Cements* has commissioned its 5th cement plant as the demand for cement is rising and the industry will flourish in the next year or two. Add.
• *Genesys International* has partnered with Bentley Systems for 3D mapping of Indian cities. This new venture can bring in higher revenue and profits. Add.
• Caustic soda manufacturer, *DCW Ltd* has managed to withstand the market onslaught due to a big shortage of this commodity in Europe. Add.
• Specialty chemical manufacturer, *GNFC*, has corrected by about Rs. 150 and is an excellent buy at Rs. 630. Buy.
• BSE listed *Filatex Fashions* (previously Unisocks), manufacturer of knitted socks, has several orders from leading brands. Add this small-cap hosiery company in small lots.
• *Coal India* expects to sell 8-9 crore MTs of coal through e-auction in FY23. Considering the strong demand and high prices in the global markets, it will rake in good money. Add.
• *Oil India* will further reduce its debt by about Rs. 1000 cr. this year and pay higher dividend. Add this stock in times of crises.
• At the slightest demand, the stock price of *Rama Phosphates* takes a leap because it is fundamentally strong and has inherent strength. Below Rs. 195 it is a good buy.
• The Tyre industry holds a firm grip. Lower crude prices will also aid rising profits. Buy *JK Tyres and Ceat*.
• *TVS Motor* is very optimistic about its working over the next few years and is flush with orders. A good long-term buy. Add on declines.
• *Blue Dart Express* has raised prices rise of all services to partly offset rising costs. Its share price,too, has started rising. Buy.
• Indian Railways plans to spend over Rs.1,00,000 cr. to develop the railway lines and the stations. *Texmaco Rails* should be a big beneficiary. Buy with a horizon of two years.
• *Dilip Buildcon* is the lowest bidder for a Rs. 723 cr. project in Phase 2 of the Ahmedabad Metro Rail project. The share must be definitely added.
• *Canara Bank* has clocked 69% higher EPS of Rs 12 in Q1 as against FY22 EPS of Rs 32.5. Despite the improving fundamentals, the share is available at a steep discount of 23% to its 52-week high of Rs 272. A likely EPS of Rs 50 in FY23 could take its share price to Rs 350 at a P\E of 7x.

• Debt-free *Career Point* has diversified into Test Preparation, K-12 Schools, Residential Coaching, e-Learning, Private Universities, and Skill Development with e-Learning. It notched 42% higher Q1 EPS of Rs 5.2 as against Rs 12.6 in FY22, which may take FY23 EPS to Rs 20. Buy for 30% gain.
• *Coal India*, the largest coal producer in the world and a ‘Maharatna’ PSU, is in a massive expansion. It notched 179% higher Q1 EPS of Rs 14.4 against Rs 28.2 in FY22, which may lead to FY23 EPS of Rs 45+. Buy for 30% gain.
• *Rain Industries* one of the largest calcined petroleum coke, cement, tar distillation, and specialty chemicals manufacturer with plants in 8 countries has upgraded of the Cement capacity to 2.8 MMTPA from 2.033 and notched 184% higher Q2CY22 EPS of Rs 19.9 against CY21 EPS of Rs 16.8, which would lead to a much higher EPS in CY22. Accumulate for 30% gain.
• *LG Balakrishnan & Bros*, the No. 1 OEM supplier of Drive Chains, supplies forgings to all 2 Tier OEMs in and is the largest exporter to USA. It posted 55% higher Q1 EPS of Rs 16.3 against FY22 EPS of Rs 78.2, which may take FY23 EPS to Rs 90+. Buy for 25% gain.
• *CSB Bank (former Catholic Syrian Bank)* with total business of Rs 37,300 r. has notched 88% higher Q1 EPS of Rs 6.6 against FY22 EPS of Rs 26.4. This could take FY23 EPS to Rs 30+. Buy for 25% gain.
• *Uflex Ltd.*, the market leader in flexible packaging, is undergoing expansion and has notched 42% higher Q1 EPS of Rs 51.9 against Rs 152 in FY22. With a likely EPS of over Rs 190 in FY23, the share may advance by 30%. Buy.
• *Antony Waste Handling Cell* posted 39% higher Q1 EPS of Rs 8.2 against FY22 EPS of Rs 24. It is growing with new orders and may notch FY23 EPS of Rs 35. Accumulate for 25% gain.


• *Sportking India* exports 45% of its sales to 30 countries including USA. A vertically integrated business of yarn, fabrics, garments and retail, it is expanding and setting up 10MW solar power. It posted 135% higher Q1 EPS of Rs 62.5 against FY22 EPS of Rs 308, which indicates that FY23 EPS could be maintained at Rs310. Buy this undervalued stock for 25% gain.


• *NLC India (Neyveli Lignite)*, a public sector enterprise engaged in mining lignite and generation of power through lignite-based thermal power plants, is undergoing various expansions. It notched Q1 EPS of Rs 3.7 as against Rs 6.7 in FY22, which indicates FY23 EPS could be Rs 16+. Buy for 30% gain.
Debt-free *Karur Vysya Bank* has notched 110% higher Q1 EPS is Rs 2.9 (FV Rs 2) on its equity of Rs 160 cr. This could take FY23 EPS of Rs 13 as against FY22 EPS of Rs 8.4. The share, which made a high of Rs 129 in 2017 could touch Rs 130 mark. Buy.
• *Dhunseri Ventures* through its subsidiaries & associates, is into manufacturing and selling PET resins, food products and infrastructure. It is in an expansion mode in BOPET and BOPP resins by next year and expanding in the food business in USA. Stock trades at a PE multiple of just 2. Buy and hold for mutli-bagger returns.
The triumvirate of Tata companies like *Titan, Trent and Tata Chemicals* bought as a basket can get your money into a multiplier zone.
• *Electrosteel Castings* makes pipes used in water projects is available at a throwaway price.
• *Ramco Cements* is from a reputed group. Its expansion project has just got commercialised. Reasonable valuation and bright future makes it an attractive proposition.
• Small cap *Rudra Global Infra Products* engaged in Ship recycling, oxygen plant, Induction Furnace, Re-rolling mill has ventured into defence space with a new subsidiary. With the defence stocks skyrocketing, this counter can give multifold returns.
• *IL&FS Investment Managers*, an old and large private equity fund manager, has raised and managed over $3.5 billion from investors like Indian Banks & Institutions, global investors include U.S. Pension Funds, Endowments, Foundations and Sovereign Wealth Funds. Stock is highly undervalued and can outperform in coming months.

• Recently listed *Syrma SGS Technology* is an engineering and design co. that provides integrated services and solutions to OEMs from the initial product concept to volume production and is present in most industry verticals with marquee clients. Stock may touch Rs 350 soon.
• FIIs one of the highest have raised their stake in *Lancer Container Lines* to a whopping 14% – one of the highest investments by FIIs in a year.
• NSE listed *Debock Industries* has started acquisition & mining of granite. Khambatta Securities has projected a target price of Rs 65.