*MONEY TIMES TALK*
*OCTOBER 29, 2023*
*Market veteran* opines that till Nov end, stock specific wild volatility is expected and also suspects pump and dump by big players before the elections results in 5 states. Stay alert, stay cautious, stay light and trade/invest with strict stop loss till Nov end.
*Eco Recycling* recommended here two years back has posted excellent Q2FY24 results as Total Income zoomed to Rs. 1008 lakh from Rs. 575 lakh with Net Profit of Rs. 612 lakh as against 343 lakh YoY. The EPS has short up from Rs.1.78 in Q2FY23 to Rs. 3.17 in Q2FY24.
*Ceinsys Tech* bags Rs.248.4 cr. order from the State Water & Sanitation Mission and Water Supply & Sanitation Deptt. of the Govt. of Maharashtra with centralized IoT platform for Jal Jeevan Mission Projects. Add for the long term.
*Styrenix Performance Materials* notched 138% higher Q2 EPS of Rs.32.1 and H1FY24 EPS of Rs.50.5, which may lead to FY24 EPS of Rs.110+ from FY23 EPS of Rs.104 and declared an interim dividend of Rs.22/share. Add for 25% gains.
Zero-debt *Tai Industries* notched FY23 EPS of Rs.7.7 on its small equity of Rs.6 cr. Buy for 30% gains.
*Cigniti Technologies* achieves Label 2 in Trusted Information Security certification with Maturity Level 3 for Digital Assurance & Quality Engineering Services. It notched FY23 EPS of Rs.60, which may lead to FY24 EPS of over Rs.72+. Buy.
*Shilp Gravures* notched 359% higher Q1 EPS of Rs.6.3, which may lead to FY24 EPS of Rs.20+ from FY23 EPS of Rs.12.7. Add for 25% gains.
*J&K Bank* notched 48% higher Q2 EPS of Rs.3.7 and 64% higher H1 EPS of Rs.6.9, which may lead to FY24 EPS of Rs.17 from FY23 EPS of Rs.12.3. Buy for 25% gains.
*West Coast Paper Mills* notched 32% higher Q1 EPS of Rs.37.2, which may lead to FY24 EPS of Rs.178+ from FY23 EPS of Rs.143. Add for hefty gains.
*Dhanlaxmi Bank’s* deposits, advances and gold loans grew 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.
*Best Agrolife* notched 126% higher Q1 EPS of Rs.38.3, which may lead to FY24 EPS of Rs.120+ from FY23 EPS of Rs.81.3. Buy for 25% gains.
A market veteran strongly recommends fundamentally sound shares like *Canara Bank, Indian Bank, Karur Vysya Bank, Karnataka Bank, Manappuram Finance, IIFL Securities, Shriram Pistons and Savita Oil* for decent gains in the medium term.
*Walchandnagar Industries* supplied critical components for the Gaganyaan project thereby establishing its capabilities in the space projects. Add on dips.
*Bajaj Hindustan* has cut its debt from Rs.4500 cr. to Rs.500 cr., which led to the dismissal of an insolvency petition against it. A big positive. Buy.
*ICICI Bank* Q2 NP rose 35.8% YoY to Rs.10,261 cr., driven by a sharp fall in provisions, while asset quality improved. Q2 NII grew 23.8% to Rs.18,308 cr. and both its total Q2 end deposits and advances grew by over 18%. Add.
*GNFC* to convene a board meeting to consider a buyback at a higher than the CMP if possible. Add.
*GSFC* holds nearly 20% stake in GNFC. Thus, its share price is bound to take a big jump. Buy.
The Defence Ministry has awarded *Mazagon Docks* Rs.2310 cr. for the construction of an instructional ship. A big positive. Add.
Central Govt. to initiate a Green Energy Corridor Phase II worth Rs.20,771 cr. for 13 GW interstate transmission lines of renewal energy in Ladakh. *Power Grid* to be a big beneficiary. Add.
*Yes Bank* Q2 NP grew 47.4% to Rs.225.21 cr. Its NPA is consistently reducing. Add.
*IRCON* has huge orders and the proposed Middle-East international corridor to Europe should provide big impetus. Add on dips for hefty gains.
*Cochin Shipyard* sitting on a big order book position of Rs.22000+ cr. to split the FV of its share and declare dividends. Add.
*L&T Finance* Q2 profit rose 46% YoY to Rs. 595 cr. and recorded highest ever quarterly retail disbursements of Rs.13,499 cr., up 32% YoY. Add.
*Kotak Mahindra Bank* Q2 NP grew 24% YoY to Rs.3,191 cr. while operating profit grew 29% YoY to Rs.4,610 cr. and the asset quality improved. Add.
*Aurobindo Pharma's* arm gets an USFDA nod for the hypogonadism drug Testosterone Cypionate Injection USP. A big positive. Add.
*Tech Mahindra* Q2 NP declined 62% to Rs.494 cr. The management stated that the pain will continue for the coming quarters as well. Sell.
The steep correction in the markets has brought down the price of *Karnataka Bank* to below Rs.220. It is likely to notch FY24 EPS of Rs.47+. Add for hefty gains.
*Nestle* has refuted allegations that it is slashing its product price in spite of price of inputs falling. A big positive. Add for the long term.
*Jubilant Food* Q2 NP declined 26% to Rs.97.20 cr. Sell.
*Ultratech Cement* has some big expansion plans that will fructify by December. Add.
*Titan* to launch an invitation-only 17,000 sq. ft. in retail store in New Delhi to sell luxury jewellery with a minimum ticket size of Rs.10 lakh. A big positive. Add.
*VI* Q2 net losses were Rs.8738 cr. despite 2% rise in average revenue per unit (ARPU) and revenue remained flat at Rs.10,716.3 cr. Sell and enter later.
*Asian Paints* continues to report better results, its Q2 NP rose 53% to Rs.1232 cr. Add.
*Canara Bank* Q2 NP grew 43% to Rs.3606 cr. on the back of lower provisions and higher NII. Add even though it expects a marginal pressure on NII in the next two quarters.
Warburg Pincus-backed *Home First Finance* Q2 NP grew 37% to Rs.54.3 cr. on the back of healthy business growth. Add for the long term.
As per a *market veteran* over 3200+ co. results including BSE SME and NSE SME, are likely to be declared between 30th Oct to 15th. As some stocks may rise while others may fall, it will be wise to trade/invest only after a deep study of Q2FY24 results.
*Shetron’s* Q1FY24 NP rose 77% from Q4FY23. The promoters hold 64.18% and HNIs hold 15.42%. Its Q2 result will be declared on 30th Oct. Keep it on your radar.
*Swan Energy* hit new high of Rs.390 on 27th Oct with huge volumes. Keep it on your radar.
Technically, *Career Point* looks very good. Keep it on your radar.
*QMS Medical* has two portals www.qmsmas.com and www.qmsmeds.com and 3 business verticals. It has asset light business model and available at an attractive valuation. Stock is set to cross its 52-week high Rs.236. Add for the long term.
As per an *Astro view,* wild volatility is expected till 16th Nov due to the Chandra Grahan on 28/29th Oct. The Nifty may test 18600-18300.
*Indian Toners & Developers* to benefit from anti-dumping duty imposed on Toner from China, Malaysia & Taiwan. The promoters hold 69% and HNIs hold 4.84%. Stock available at a P/E of 11x. Add for 30% gains.
*Vaishali Pharma’s* exhibition in Spain from 24-26 Oct will introduce its new brand ‘HEALTH E’ for local online market. It is likely to cross its 52-week high of Rs.194. Keep it on your radar.
Recently listed, *Plaza Wires* plans to set up a unit with a capacity of 8,37,000 coils p.a and 8700 km p.a. Buy.
*Univastu India* trades cheap compared to its peers. It is engaged in EPC services for civil, structural construction and infrastructure sector projects. Keep it on your radar.
*BPL* ties-up with Reliance Retail for TVs, washing machines, refrigerators and ACs. Its BV is Rs.50+ and has a mkt-cap of Rs.500 cr. Further, it also holds stake in BPL Medical Devices. Add for hefty gains.
*Venus Remedies* bags marketing rights for Philippines and UK to market its cancer related drugs. Buy.
*Satin Creditcare* posted good Q2 results but trades cheap compared to small banks like Ujjivan and Equitas,. Add for 30% gains.
*GMDC* trades cheap and further decline to Rs.320-350 would be a good buying opportunity. Add for the long term.
*Maruti* is on a revenue and profitability upside. Strong management quality can see a great growth. Add for the long term.
*Nestle* proved that it has conquered the sluggishness. It plans to launch new products and incur huge capex. Add.
*Indian Hotels* posted excellent results and has multiple management contracts. Need not worry about the P/E in this directionally strong story. Add.
The India Mobile Congress 2023 points to the growing prospects of 5G products. *HFCL* will be its biggest beneficiary. The stock fell below its recent QIP price of Rs. 69 and can give impressive returns. Buy.
*Sadhana Nitro Chem’s* facility is the second plant globally to manufacture PAP from Nitrobenzene. It posted good H1FY24 numbers and PAT rose 24% YoY. Buy.
*IFL Enterprises* has an order book of Rs.650 cr. and promoters are increasing their stake. Board may consider bonus and dividend. Add.
*Sheetal Diamonds*, a fast growing manufacturer, supplier and exporter of rail, natural, loose diamond and diamond jewellery has risen 25% since recommended 2 weeks back. There is still steam left in the stock.
*South India Bank* has posted good Q2 numbers. Stock is trading at 5x of FY23 earnings. Buy now and on declines for target price of Rs. 35 within one year.