*TOWER TALK*
*OCTOBER 14, 2023*
*As market veteran* opines that politico-economic crises offer splendid opportunities for investment that must be grabbed for excellent returns. Understand the opportunity & take advantage. In October-November many such opportunities are likely to emerge as it is the nature of the stock market to go down time to time.
*Bajaj Healthcare* recommended by Money Times 2 years back is ruling high. It has just completed the construction of India’s first Alkaloid extraction plant to process 2500 TPA of Poppy Straw and 300 TPA of Poppy Gum and is the leader in opium processing.
*Solar Industries* bags fresh orders worth Rs.1853 cr. from Coal India. A big positive. Add
*Indiabulls Housing* prepays NCDs worth Rs.1800 cr., which shows its financial strength. The current beaten-down share price merits buying. Accumulate.
*TCS* Q2 NP rose 9% and it has announced a buyback of shares worth Rs.17,000 cr. Add for the short term.
*Laurus Labs* to fund gene therapy research at IIT Kanpur and acquire rights to the gene therapy product develop. Add.
*Maruti* plans to invest over Rs. 1.25 lakh cr. towards expansion and new launches, over the next few years, as revealed by the company in a presentation to the shareholders and analysts. Buy at every opportunity.
MLMML, a subsidiary of *M&M* to make electric vehicles, has received Rs.300 cr. from IFC, towards last-mile mobility solutions. Add.
Realtors expect record FY24 sales as unsold inventory is at a decade’s low. Add *India Bulls Real Estate*.
Analysts expect a big revival in the working of large-cap steel companies. Buy *Tata Steel*
*BOB* to raise Rs.10,000 cr. infra bonds to garner long-term capital. Add.
Reports suggest that there is a big surge in the number of investors in the stock market. Buy *CDSL* for hefty gains.
*GMR Infra* gets a Rs.4000 cr. loan to build Vizag International Airport. Add for the long term.
*Sterling & Wilson* misses a payment deadline to lenders amid a liquidity crisis. It is trying to raise Rs.1500 cr. in the form of fresh debt. Sell.
*HCL Tech* Q2 NP rose 9.92% YoY to Rs.3833 cr. and revenue grew 8% and it declared an interim dividend of Rs.10. Add.
*MOIL* is on the run. Institutions are acquiring large quantities and its passing through biggest rally in the last one decade. Add.
*KP Energy* wins new order from Aditya Birla Renewable Energy to develop of 23.1 MW wind energy project to be completed in FY25. Add.
*SJVN* subsidiary has bagged a 100 MW solar power project worth Rs.600 cr. in Rajasthan. A big positive. Add.
*NMDC* is in the race to acquire rights to mine lithium. Add for the long term.
*HDFC Life* Q2 profits rose 15% to Rs.385 cr. It is a safe investment bet. Add in small lots.
*Ashok Leyland* bags orders for 1666 new buses from Tamil Nadu Govt. to be executed between November 2023 and March 2024. A big positive. Add.
Tata Power Renewable Energy, a subsidiary of *Tata Power,* gets $425 mn. from the US IDFC for its greenfield project in Tamil Nadu. Add for the long term.
*Hindustan Zinc* is set to deploy GreenLine's LNG-powered fleet in its supply chain and transportation operations. Add on dips.
*Coal India’s* H1FY24 production of coal grew 34 MMTs or 11.3% YoY to 333 MMTs. All its production subsidiaries clocked growth. Add on dips.
*Cigniti Technologies* achieves higher levels of Trusted Information Security Assessment and Quality Engineering Services. It notched FY23 EPS of Rs.60, which may lead to FY24 EPS of Rs.72+. Buy.
Asirvad Micro Finance’s IPO of Rs.1500 cr., to boost parent *Manappuram Finance* that notched 77% higher Q1 EPS of Rs.5.9, which may lead to FY24 EPS of Rs.22+. Add for 30% gains.
*NLC India* bids for 810 MW Grid Connected Solar photovoltaic power projects set up in 2000 MW Pugal Solar Park in Tehsil, Rajasthan. Add.
*Maruti Suzuki India* will invest upto Rs.50,000+ cr. by FY31 to double its capacity to 4 million vehicles p.a. It notched Q1 TTM EPS of Rs.321 and FY23 EPS of Rs.222. Add on dips for the long term.
*G R Infraprojects* and *Patel Engineering* consortium JV Dibang executed a contract agreement with NHPC for the construction of civil works worth Rs.3637 cr. Buy both for decent gains.
*Satia Industries* to supply 34000 MT paper worth Rs.340 cr. for printing textbooks by the Rajasthan and the Maharashtra Textbook Corporations. Accumulate.
*Shreyans Industries* notched 281% higher Q1 EPS of Rs.23.1, which may lead to FY24 EPS of Rs.70+ as against FY23 EPS of Rs.53. Add for 25% gains.
*Canara Bank* notched 72% higher Q1 EPS of Rs.20.6, which may lead to FY24 EPS of Rs.85 as against FY23 EPS of Rs.61. It is available at a P/E of just 4.4x. Add for 30% gains.
*IIFL Securities* notched 70% higher Q1 EPS of Rs.2.5, which may lead to FY24 EPS of Rs.11+ as against FY23 EPS of Rs.8.2. Add for 30% gains.
Quant MF has acquired 2.48% stake in *Karnataka Bank*, which is expected to notch FY24 EPS of Rs.47. Buy for 25% gains.
With a Rs.4,500 cr. size of the domestic waste management industry, the prospects of *Antony Waste Management Cell* appear bright. It notched FY24 EPS of Rs.24.4. Add for the long term.
*Hindustan Tin Works* manufacturer of 2 crore tin cans/month plans to set up another plant to meet the robust demand. Stock available at a P/E of 9x and P/Bv of just 7. Keep track for good gains.
*Colab Cloud* is a new age platform focused on Artificial Intelligence (AI), Data Analytics, Cyber Security, Augmented Realty (AR), Virtual Realty (VR), Web 3.0 and Metaverse – all the attributes for multibagger returns.
*TGV Sraac* is available at PE of just 5x. With negligible debt and ROE of 40%, its share price can bounce back as price of caustic soda is at a yearly high and it has huge expansion plans. Buy for hefty gains.
NSE listed *QMS Medical Allied Services* is into medical and healthcare devices and organizes diagnostics & healthcare camps which can be a game changer. Buy for multiple gains.
*NTC Industries* is a cash rich cigarette manufacturer with prime land in Kolkata & has a cigarette license worth many times more than its market cap. It posted bumper Q1 results. Keep on radar for 30% gain.
*IRB Infra’s* H1FY24 toll revenue is up by 20% to Rs.2386 cr. v/s Rs.1984 cr. in H1FY23 and the growth momentum is likely to continue. Keep on radar for 20% gain.
On Friday 20% buying cap imposed on MNC *Integra Engg*. on announcement of huge capacity addition of 75,180 square feet. Present capacity is 1,78,313 square feet. Keep on radar for good gains.
80% dividend paying, *Plastiblends India* notched 126% higher Q2 net profit of Rs.9.53 cr. Promoters bought shares from market & increased their stake to 64.21%. Its equity of Rs.13 cr. is backed by reserves of Rs.385 cr. Add for good returns.
*B.L.Kashyap & Sons*, is a leading civil engineering & construction company, hit a new 52 week high with volume on Friday on news of Rs.167 cr. order from Delhi International Airports. Keep on radar for 20% gains.
With high occupancy during G-20 in Sept, World Cup in Oct & Dipavali in Nov, *Royal Orchid Hotels* is likely to fare well & the stock may cross its 52 weeks high Rs.385. Keep it on your radar.
*Shree Ganesh Remedies* into API intermediates for human health & veterinary, specialty & fine chemicals will double its capacity by Dec. 23. Its Q1FY24 NP grew by 66%. Keep on radar for 30% gain.
As per an Astro view, the high & low of 13th Oct may work as strong resistance & support levels for the next 25 days.
*Vakrangee* has entered in to an arrangement with JK Cement for lead generation for sale of grey cement through Vakrangee Kendra networks. Keep on radar. 52 weeks high of Vakrangee is Rs.33.
Keep on radar *Accelya, Anantraj, BF Utilities, HCC, Indo Tech Transformers, ITD Cementation, Kiran Vypar, Jain Irrigation, Midhani, NCC, PNC Infra, RCF, Ruchira Papers, Rana Sugars, SGRL, Satin Credit, Techno Electric Engineering & Vakrangee* for good return in short term. However, trade/Invest with strict stop loss due to Sept. QTR. Results seasons.
Hella Infra has come out with an open offer for Jindal backed *Shalimar Paints*. Its share has been rallying since and has immense potential given its brand value. Add for hefty gains.
*Genesys International*, a mapping co., trades at a mktcap of Rs.1000 cr. is backed by ace investor, Ashish Kacholia. It has to catch up with MapmyIndia with a mktcap of Rs. 10000 cr. Keep track
With a book value of Rs.450+, *Ganges Securities* looks a safe bet. Earlier, there were talks that it plans to sell its processed food and tea business. Keep it on your radar.
*Phoenix Mills* is the true reflection of the Indian consumption story with a sustainable growth including footprint. Must add.
*Larsen & Toubro* is the true reflection of the Indian infra story. New orders of high value keep pouring in but valuation is still not aggressive
An unexpected representative of the Indian defense story is *Bharat Forge*, a broad-based business conglomerate. Must find a good place in everyone's portfolio
*Sheetal Diamonds,* a fast-growing diamond manufacturer, supplier and exporter of an exclusive range of Real Natural Loose Diamonds and Diamond Jewellery is acquired by Rajnishkumar Singh, the visionary of Rajnish Wellness’ success with Dava Discount stores.
*IFL Enterprises* collaborates with Charter Paper Pty Ltd., which may invest upto A$10 million (approx. Rs. 53 cr.) in IFL Enterprises Ltd. for the upcoming operations. Add
*Servotech Power Systems* and EMCOR Power Solutions form a strategic partnership to revolutionize EV Charging Infrastructure in India upto 1000 sites. The company also approved 20% dividend for FY23. Add
*Alpa Laboratories* is poised to spurt after better Q2 results. It posted 13% Q1 growth in NP and is trading at a PE of 12.48x against industry average of 40.38x and PB ratio of 1.17 against industry PB ratio of 4.74. Buy.
*HFCL* posted 43.40% growth in NP in Q1FY24. Still better results expected in its Q2FY24 this week. Giant strides are in store for the stock. Buy.
*Rudra Global Infra Products* has fixed 18 Oct as record date for 2:1 stock split and 1:1 bonus, which will boost its liquidity on the stock exchange and may offer better returns.
*Univastu India* into integrated engineering, procurement and construction services with reputed clientele has good order inflows. Its ROCE of 19.1%, ROE of 15.9%, and PE of 20.9x, which makes it a attractive buy.
*Ausom Enterprise* trades in financial and commodity markets, dealing generation and distribution of electricity and construction is a undervalued stock trading at 1.118x of its BV and is likely to move forward.