Money Times Talk

18 December 22

Swiss brokerage, *Credit Suisse*, believes India is growing faster than what is captured by our official data and is a strong case for an upgrade of equities outlook in view of India’s GDP acceleration in 2023.

*Bajaj Healthcare’s* outlook appears to be improving after its singular role in opium processing for govt. bodies. In two BSE filings over the last two days, promoter Anil Jain has acquired 11500 shares of the co. Keep track.

*VIP Clothing*, manufacturer of leading brands of undergarments, has roped in Sunil Alagh, a marketing icon and former MD of Britannia Industries, as a strategic advisor. Keep this stock on your radar.

ICRA has upgraded the bank credit facilities of *Panama Petrochem* in view of its better results on the back of higher capacity utilization. This share may be added.

*Ircon International* wins Rs 122 cr. order from Sri Lanka Railways for commissioning the signalling system. Even otherwise, it is flush with an order book for the next four years. A Big buy.

Manufacturer of Chlor-Alkali products, Castor Derivatives and Fatty Acids, *TGV SRAAC Ltd* notched 528% higher Q2 EPS of Rs 8.8 and 883% higher H1 EPS of Rs 22.6 is set to post FY23 EPS of Rs 44+. Share price to cross its 52-week high of Rs 182. Buy for 30% gain.

*NTPC* to raise Rs 500 cr. via NCDs for funding its capex requirements. The increased capacities will boost its profitability. Buy for the long term.

*HG Infra* has been declared as the lowest bidder for the National Highway Authority of India for a Rs 997 cr. road project in Haryana. Add.

*Apollo Hospital* to raise Rs 105 cr. via NCDs to be allotted to ICICI Bank to enable the it to provide comprehensive, high-quality hospital services, including medicines to patients. Add.

*Tata Motors* has decided to hike the selling prices of all its vehicles by 2% from January 2023 to offset the impact of rising input costs and also boost profitability. Add.

Robust FMCG demand is pushing the share prices of small-cap companies like *Sapphire Foods and V-Mart*. Add both.

Small-cap cattle feed maker, *Ajooni Biotech* backed by the Patanjali group and other conglomerates plans a big expansion. Buy with a horizon of two years.

*Bimetal Bearings*, leading manufacturer of Engine Bearings, Bushings, etc. posted an excellent Q2 and is reportedly faring well. Its tiny equity and about 75% promoter stake merits a buy.

The *One 97 Communications (Paytm)* board has okayed a share buyback worth Rs, 850 cr. funded by internal accruals. Its share price may rise in sympathy. Good for making quick short-term gains.

Acquisition of JP’s cement capacity can be a big game-changer for *Dalmia Bharat* as it gains a foothold in Central India. Add in small quantities.

*P&G’s* Net profit fell 18% in FY22 on the back of high input costs despite 8% rise in revenue. Switch to *Marico*.

*Torrent Pharma* has inked a marketing pact with Boehringer Ingelheim for its anti-diabetic drugs. Positive for Torrent. Add selectively.

*Poonawalla Fincorp* to sell its housing finance unit to the TPG arm for Rs. 3900 cr. The idea to pursue its core business is a big positive. Add.

*HDFC Bank* acquires 7.75% stake in Mintoak, a payments-led fintech platform providing a digital point of sale and value-added services for merchants. Positive for the bank. Add.

*Hindustan Foods* has acquired Reckitt Benckiser’s Baddi plant to expand its Healthcare and wellness segment. Add.

*Wipro’s* multi-year digital partnership with Finastra from the Middle East is to align with the region’s vision and digitize to bolster cross-border trade. Add for the long term.

*Arfin India*, a small cap Gujarat company, has bagged an export order worth Rs. 350 cr. from Saudi Arabia for supplying aluminum deox and other non-ferrous products. Add.

Oil exploration stocks may rally with the Govt. slashing windfall tax on crude prices. Add *ONGC, RIL and Oil India* in small quantities.

After a run-up in stock prices, many banks have witnessed a correction. *DCB Bank* may be added for quick gains.

Steel industry seems to be turning around. *Tata Steel,* the industry leader, remains the most favourite.

*Kalyani Steels* is the biggest beneficiary of the progress made by sister unit, Bharat Forge and the automobile industry. Significant amount of cash makes it even more attractive.

*GPIL (Godawari Power & Ispat)* should also be able to scale up. Its own iron ore mines protect it from ore price volatility.

*Star Housing Finance*, a rural focused HFC has effected 1:1 bonus and split its share 1:2 as an investor friendly move. Add.

NSE listed *Servotech Power Systems* has inked a deal with National Solar Energy Federation to implement solar powered EV Charger enabled carport. Its board has also approved subdivision of its share to FV of Rs.2 each.

*Integra Essentia* is on an expansion & diversification spree by acquiring a rice processing unit as a JV to supply rice to FCI and export it to the Middle- East. It has also acquired a stake in retail chain.

*Heranba Industries* with its value chain of Technicals, Formulations & Intermediates exports almost 48% of its agrochemicals. Its stock trades at just 10x to FY23E earnings and better FY24 post expansion.This scrip may touch 4 digits mark within 2 years.

*Madhusudhan Industries* is a group company of CERA sanitaryware. Its main income is from land lease to Cera and income from investments worth Rs 18 cr. in mutual funds and bank deposits of 12 cr., which is more than double its mkt cap of Rs 12 cr. Buy for 50% returns within 1 year.

*Competent Automobiles* is an auto retailer with 49 outlets of Maruti Suuzuki & Nexa in Delhi, Haryana and HP with sales of Rs.1400 cr., EPS of Rs.34.6, PE at 7x and BV of Rs.464 and PB ratio of just 0.56. Stock quotes at throwaway valuation at mkt cap of only Rs.169 cr. Keep on radar.

*Sinclairs Hotels* with 9 iconic hotels at beautiful locations is available cheap. It recently sold its land in Kolkata for Rs.27 cr. and is now cash surplus with Rs.87 cr. It posted bumper H1 profit of Rs.7.28 cr. on its small equity of Rs.5.43 cr. Buy for good gains.

SKM Egg Products posted 312% higher H1 profit of Rs.18.93 cr. v/s Rs.4.59 cr. in H1FY22. It is expanding capacity 3-fold and is a beneficiary of low GM soya prices. Its Q3 & Q4 may be bumper due to the high winter demand overseas and depreciating rupee. Buy for very good returns.

*PNC Infratech* posted H1 net profit of Rs.298 cr. due to Govt’s focus on road & infra. Q3 & Q4 may also be very good. Keep on your radar.

Pennar Industries posted 110% higher H1 net profit Rs.30.46 cr. v/s Rs. 14.48 cr. in H1Y22. It may post better Q3 & Q4 due to very big order book. Buy for 35% gain.

*HCC* posted Q2 profit of Rs.319 cr. v/s loss of Rs.279 cr. in Q1FY23. It has reportedly won Rs.1300 cr. arbitration award. With debt cuts finalized & finance cost set to fall to Rs.400 cr. Keep on radar for 35% gain.

*Kamat Hotels* to issue preferential warrants convertible into one equity share at Rs.97 each totalling Rs.57.19 cr. to the promoter group and a non- promoter person. For H1, it posted profit of Rs.7.47 cr. v/s big loss of Rs.17.60 cr. in H1FY22. It is likely to post good Q3 due to festive sales.

As agri & fertilizers share are fancied, *Aries Agro* posted H1 EPS of Rs.16.44 with its four new manufacturing units now operational. Its the cheapest agro share. Keep on radar.

*Lambodhara Textiles* posted 52% higher H1 net profit of Rs.11.55 cr.v/s Rs.7.62 cr. in H1FY22. Huge reserve of Rs.78 cr. on its small equity of 5 cr. makes it attractive. Promoters have increased their holding to 73%. Yet available at an attractive PE of just 4.3x. Keep on your radar.