MONEY TIMES TALK
OCTOBER 07, 2023
*Coal India’s* H1FY24 sales rose 3.4% to 294.8 MMTs on the back of increased demand from the electricity sector. Add.
*NMDC* share price is expected to cross Rs.180 due to its potential power to foray into the lithium business. Add.
*Hero MotoCorp* immediately announced a price hike across all its products. A big positive. Add.
*Emami* announced its foray into the juice category with a strategic investment in Axiom Ayurveda Pvt. Ltd. It is in for better times. Buy.
*Pearl Global* is expected to notch Q2FY24 EPS of Rs.25. Its share trades at a P/E of 14x as against the industry average of 54x. Add.
*Voltas* Q1 results indicates a rising topline and bottomline. Its share is poised to reclaim its lost ground. Add.
Oil exploration companies are struggling for rigs as oil is slowly becoming costlier. It would be prudent to Add *Dolphin Offshore.*
*Cochin Shipyard* order book is bulging. The recent correction in prices provides an excellent opportunity to accumulate. Add for 25% gains.
*Som Distilleries* is working at full capacity and the FY24 results are expected to be excellent. Add.
*Gabriel India* is touching new highs. Although it is doing well, the big spurt merits some profit booking. Sell.
*Bharat Forge* bagged large defense orders. A big positive. Add for good returns.
Government is considering imposing anti-dumping duties on isopropyl from China. *Deepak Fertilizers* could be a big beneficiary. Add.
*GMR Airport* is reportedly faring very well. Add.
Post-merger, *HDFC Bank* reported an all-around improvement on the back of rising deposits. Add.
The Indian Air Force has plans to acquire 156 Prachabd Light Combat Helicopters. *HAL* will be a big beneficiary. Accumulate.
*Bajaj Finance* plans to raise a Rs.10,000 cr. via QIP and other sources. A right issue cannot be ruled out. Add.
*L&T’s* order book is swelling with the Saudi construction boom. It has now become one of the top EPC contractors in Asia. Add.
*MRPL* is continuously increasing its crude oil throughput. It plans to enter the biofuel and alternate energy sectors which will improve its business prospects. Buy.
*Zydus Life Science* expects to launch Vascepa. It has 62 ANDAs pending for approval. Its share trades at a P/E of less than 22x as against the industry average of 30x+. Add.
*PNC infra* received a certificate of completion for the 8-lane expressway in the Panchmahal-Delhi. Its order book stands at Rs.18,900 cr. Add.
Ace investor, Porinju Veliyath, is reportedly buying big quantities in *Kerala Ayurveda*. A seemingly good buy. Add.
*Apollo Micro Systems* is setting up a new plant in Hyderabad to make defense electronics product. A big positive. Add.
The JV of *NCC and J. Kumar Infra* bagged a Rs.6,301 cr. contract for the twin tunnel from Film City, Goregaon to Khindipada, Mulund. Buy both.
*Ircon Int’l.* has a Rs.122 cr. contract from Sri Lanka Railways for the signalling and telecommunication system. Its order book stands at Rs.40,000 cr. Buy for decent gains.
*Karnataka Bank* to issue up to Rs.3.34 cr. equity shares to 4 insurance company and Mutual Funds at Rs.239.52/share on a preferential basis. Add for 25% gains.
*Cigniti Technologies* is recognized as a leader in Everest Group's Quality Engineering Services PEAK Matrix Assessment 2023. It notched FY23 EPS of Rs.60, which may lead to FY24 EPS of Rs.72+. Buy.
*KPI Green Energy* has been awarded a LoI for a 145.20 MW Wind-Solar Hybrid Power Project by Ayana Renewable Power Four Pvt. Ltd. Add.
*RSWM’s* Lodha Unit in Banswara commences commercial production from 25th Sept it notched FY23 EPS of Rs.26. Add for the long term.
*Shyam Metalics* ventures into energy storage with battery-grade Aluminum foil, a critical component in lithium-ion cells it notched FY23 EPS of Rs.34. Add for the long term.
*RPP Infra Projects* wins Rs.300.4 cr. order for road and drain works adding to its order book of Rs.3200 cr. For Q1FY24, it notched 188% higher EPS of Rs.2.8, which may lead to FY24 EPS of Rs.15+. Add for 30% gains.
*Repco Home Finance* notched 30% higher Q1 EPS of Rs.15.2, which may lead to FY24 EPS of Rs.62+ as against FY23 EPS of Rs.50.6. Add.
*Zen Technologies* wins Rs.227.65 cr. order from Defence Ministry, which takes its order book to Rs.1467.3 cr. Add on dips.
*Chamanlal Setia* notched 23% higher Q1 EPS of Rs.5.3, which may lead to FY24 EPS of Rs.28+ as against FY23 EPS of Rs.22.7. Add for 40% gains.
*Best Agrolife* notched 126% higher EPS of Rs.38.3, which may lead to FY24 EPS of Rs. 115+. Add for 30% gains.
*Dhanlaxmi Bank’s* deposits, advances and gold loans rose 8.2% to Rs.137.9 cr., 13.2% to Rs.103 cr. and 26.6% to Rs.26 cr., respectively. Its total business grew 10.3%. Add.
*Karur Vysya Bank’s* advances rose 14.1% YoY in H1FY24, which is higher than its 5-year CAGR of 5.38%. Further, its deposits and total business grew 13.2% to Rs.83,068 cr. and 14.15% to Rs.1,53,514 cr., respectively. Accumulate.
*IndusInd Bank’s* net advances and deposits rose 21% YoY and 5% QoQ to Rs.3,14,928 cr. and 14% YoY and 4% QoQ at Rs.3,59,819 cr., respectively as of H1FY24. It posted 30% higher Q1 EPS of Rs.27.3, which may lead to FY24 EPS of Rs.125 as against FY23 EPS of Rs.96. Accumulate.
*Federal Bank’s* total deposits and gross advances grew 23% YoY to Rs.2,32,871 cr. and 20% to Rs.1,95,973 cr., respectively as of H1FY24., which indicates a robust performance. Add.
*CSB Bank’s* total deposits, gross advances and gold loans grew 21.2% to Rs.25,438.5 cr., 27.2% to Rs.22,468.4 cr. and 32.3% to Rs.10,618 cr., respectively. Add for the long term.
*Capacite Infraprojects* bags a repeat order worth Rs.281 cr. from Raymond for a project at Thane. Buy.
*J&K Bank’s* business, deposits and advances rose 12% to Rs.2.18 lakh cr., 9.4% to Rs.1.27 lakh cr. and 15.9% to Rs.91,680 cr., respectively as of H1FY24. It is expected to notch FY24 EPS of Rs.16+. Buy for 20% gains.
*Tara Chand* is a great beneficiary of the upcoming infra boom. Accumulate.
*All E Technologies* has huge cash in the books and is not fully valued yet. Add.
*Oriana Power* is engaged in renewable energy and is likely to scale up multifold. Add.
*Plaza Wire’s* IPO was heavily oversubscribed 161 times. 42.84 times in QIB, 388 times in HNI and 375 times in retail category. Given this oversubscription listing at higher rate is likely.
*Hariyana Ship Breakers* notched FY23 EPS of Rs.6.78 and trades at a P/E of 13x and P/B of 0.37x. It has a book value of Rs.223 and is a big beneficiary of the scrapping policy. Keep track.
*TCM* has 4 subsidiaries, TCM Solar, TCM properties, TCM Healthcare and I-Spark Learning Solutions. With all business growing exponentially, it can be a multi-bagger. Add.
*Artefact Projects* wins 4 big orders worth Rs.31 cr. and the order book has visibility for next 5 years and has cut debt by pre-payment of Rs.5 cr. Five reputed HNIs hold 7.26% stake. It is now available at Rs.58. against preferential share issue at Rs.111 in the past. Add for hefty gains.
*Godrej Agrovet* into animal feed, crop protection, dairy, palm oil, poultry and processed foods posted 365% higher Q1FY24 NP against Q4FY23. A big bullish breakout with volumes was seen on Friday. Keep track.
*Lahoti Overseas* Q1 PAT rose 73% to Rs.3.01 cr. from Rs.1.74 cr. in Q4FY23. It trades at a P/E of 7x and its market cap: sales suggests a sharp rise in its share price. Reputed HNIs Sangeetha S. holds 1.14%, Rishi Gupta holds 1.10%, Anil G. Bhagwani holds 2.03% and the promoters hold 59.81% stake in the company. Add for decent gains.
Promoters of *HP Cotton Textile* are bullish as they converted warrants into equity at Rs.135/share as yarn prices are rising and re-rating of this share is likely. They hold 64.90% & 4 HNIs hold 9.94% stake. Friday saw a big bullish breakout on the charts. Add for 30% gains.
*Radio City* to embed FM in mobile for news on radio, which is very profitable. Friday bullish break out came with volumes. Add for hefty gains.
*Vaishali Pharma* Q1FY24 NP rose 264% QoQ. Its 52-week high was Rs.194 and is available at Rs.133. Add for decent gains.
With high occupancy during G-20 in Sept and now due to the World cup, *ITDC* is likely to fare well and the stock may cross its 52-week high. Keep it on your radar.
*Techno Electric & Engineering* Q1FY24 NP grew 146% to Rs.53.87 cr. from Rs.21.87 cr. in Q1FY23. With high growth segments like transmission, FGD, AMI, data centers it hopes to bag orders for smart meters and has spent Rs.1400 cr. on making a data center at Chennai. Add for 30% gains.
Debt-free *PBM Polytex* with 70% promoter holding and reserve of Rs.117 cr. its book value stands at Rs.181 and the P/B is just 0.52x while the market cap is Rs.70 cr. Add for 40% gains.
*Pyramid Technoplast* repays debt of Rs.40 cr. and turns debt-free. It added 1,20,000 units of IBC capacity and plans to invest Rs.40-50 cr. in FY24-26 funded by internal accruals and grow 20-25%. Add.
*Shree Ganesh Remedies* will double its capacity by Dec. 2023. Its Q1FY24 NP grew 66% to Rs.4.75 cr. from Rs.2.87 cr. in Q1FY23. The promoters hold 69% and 3 HNIs hold 5.62% stake in the company. Add for 30% gains.
On Friday 6th Oct, fresh buying and delivery of over 2 crore shares in *HCC* suggests that something is cooking. FIIs hold 12.29% and DIIs hold 12.45%. Add for 30% gains.
*Jain Irrigation* Q1FY24 PBT rose 185% YoY. It has an equity base of Rs.129 cr. and reserves of Rs.5056 cr. FIIs and DIIs hold 14% stake in the company. Add for 30% gains.
*Marksans Pharma* has received USFDA approval for Guaifenesin tablets and also received final approval from USFDA for Esomeprazole tablets. A big positive. Add for 30% gains.
*Peninsula Land* Q1FY24 NP rose 372% to Rs.60.46 cr. from Rs.12.81 cr. in Q1FY23. Its borrowing fell drastically to Rs.424 cr. in FY23 from Rs.2422 cr. in FY18 and is likely to become debt-free soon. Add for 40% gains.
*Vedavaag Systems* is expected to record excellent results in Q2FY24 and is poised to cross its 52-week high in 2024. Add for the long term.
Citroen cars are now finally seen on the roads. Citroen parent Groupe PSA has a JV with AVTEC Ltd. for making cars in India. *Hindustan Motors* has a stake in AVTEC. Further, the recently launched ‘C3 Aircross’ is seeing good demand. Add.
Software companies should be looked for in the coming week due to the buyback announcement by *TCS*.
*Nucleus Software* has consolidated for quite a while and looks ready to move up. Add.
*GMR Power* has fallen from Rs.50 to Rs.35, providing a good opportunity to buy. Recently, it bagged orders worth Rs.5000+ cr. from various state governments. Add.
*GMDC* hopes to double its revenue in coming years and foray into mining of rare earth minerals. Its new chief is considered close to the PM, which will have a salutary effect on the co. Add for multi-bagger gains.
*Summit Securities* is available at 88% discount to its holding of Rs.8800 cr. in CEAT, ZENSAR and KEC International. Add for hefty gains.
*Prima Agro* came out from long consolidation and its expanded capacity will deliver good profits in FY24. It is expected to notch FY24 EPS of Rs.5. Add for 40% gains.
Rajnishkumar Singh, the visionary behind Rajnish Wellness’ success with ‘Dava’ discount stores, has acquired of *Sheetal Diamonds*, which is a big positive. Add.
*Sadhana Nitro Chem* is on a high growth trajectory and expects enhanced profitability from its new plant. It exports its products to highly developed markets. Add.
*BLS International* has signed a contract with the Ministry of Foreign Affairs and Trade of Hungary to provide visa outsourcing services in Uzbekistan, Oman and Qatar. Add.
*Rama Steel Tubes* to benefit from the robust demand for steel from sectors such as real estate, infrastructure and automobiles. This demand and softer material prices will boost profitability. Add.
*Rudra Global* announced stock split and bonus. Its stock is transferred to ESM stage 1 and its circuit limit will be 5% from Monday. Add for hefty gains.
*Maheshwari Logistics* has large fleet of 114 vehicles and affiliation with 3000 to 4000 third party vehicles. In FY23, it achieved paper production of 89680 MT. Looking at the recent volume trends, some big move is expected in this counter. Add.
*Univastu India* a construction company with PWD class 1A unlimited, CIDCO Class 1A unlimited certificate. Its clients include Govt. agencies like CIDCO, Sport Authority of Goa, PWD Ahmednagar etc. At a P/E of 18.8x, it looks highly undervalued compared to its peers. Add.