Money Times Talk
31 December 2022
• *Eco Recycling*, profitable recycler of electronic waste, is a robust performer and potential multi-bagger as India takes the lead to reduce the carbon footprint. Buy this futuristic stock.
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• Food ministry to give 100% incentive to mills for sugar sacrificed for ethanol production. Add *Bajaj Hindustan*.
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• Budget 2023-24 will focus on Green Energy. *Suzlon and Orient Green Power* must be added.
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• *SPL Industries* is a big beneficiary of low cotton prices and may post FY23 EPS of about Rs 13. A PE multiple of just 10x, against Apparel average PE ratio of 50.53, could take its share price to Rs 130.
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• *Likhita Infrastructure*, which lays gas pipelines, is undertaking a big expansion. This share is a potential a multi-bagger. Buy.
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• FPIs are reportedly lapping up shares from the defense sector. *MTAR* looks like an excellent share for the long-term bet. Add.
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• Textile companies to take-off on the back of govt. incentives and shift in business from China to India. Add *Gokuldas Exports and Nitin Spinners*.
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• Now that China is slowly opening up, the New Year will start ringing for metal shares. Buy *NMDC and GPIL*.
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• As Budget preparation nears, Railway stocks start moving up. *Texrail* can run up to decent levels. Add.
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• Despite the fire at one of its units, many analysts are bullish on *Laurus Labs* due to its strong business prospects, its robust R&D, and capacity expansion. Add.
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• The pre-Budget rally may usher a boom for efficient banks. Buy *Karnataka Bank, Central Bank, Bank of India*.
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• The GST rate cut on ethanol will help *Praj Industries* bounce back and recover the Rs100 it lost in the past 12 months.
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• The Union Budget is sure to push the EV sector. *Gravita* is already marching ahead to other countries and expanding capacities. The share may double in another two years. Buy.
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• *Hariom Pipes* to buy R P Metals’ galvanizing business spread over 13.83 acres in TN for Rs. 55 cr. Buy.
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• *Poonawalla Fincorp* targets a Rs. 50,000 cr. loan book in five years, said its chairman in an interview. The share may be added with a long-term perspective.
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• *Chalet Hotels* is abuzz on expectation of improved working and witnessed heavy volumes on rising prices. Risk-bearing investors may add this share with strict stop-loss limits.
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• The biological arm of *Strides Pharma* has won USFDA nod for a key ANDA and co. posted Q2 consolidated net profit of Rs 22.83 cr. v/s loss of Rs. 162 cr. YoY. A good share to add.
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• *Mahindra CIE Automotive* witnessed an upsurge at the sale of its loss-making arm – the German forging business. Accumulate the share gradually.
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• *Ceat* expects to move ahead in 2023 with a firm grip on falling input costs and rising demand from OEMs and replacement markets. The share may rise by about 50% in a year. Add.
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• India has successfully tested hypersonic missiles joining USA, Russia, and China and propelled us to the 7th rank in missiles. Add *Bharat Dynamics*.
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• Analysts expect FMCG major *ITC* to outperform HUL in terms of growth and performance in 2022. Add.
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• Fertilizer stocks are rallying on talks of a subsidy hike. *GSFC, GNFC, and Zuari Agro* look attractive bets among the lot. Add.
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• Tata Power Renewable, a subsidiary of *Tata Power*, is likely to set up a 255 MW green power plant in Karnataka. Add.
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• *Deep Industries* has won a 3-year order of Rs.135.2 cr. from ONGC for hiring its gas compression services at Balol GGS I. Add on declines.
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• *Gateway Distriparks* has acquired 99.92% stake in Kashipur Infrastructure & Freight Terminal for Rs 144.5 cr. Buy for the long term.
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• *Alkem Laboratories* to dilute 8% stake for Rs 161.5 cr. in its subsidiary, Enzene Biosciences, to investors overseas. The funding will propel capacity expansions in India and USA. Accumulate on declines.
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• *SJVN* has won a 100 MW wind power project at Rs 2.90 per unit on a build-own-and-operate basis through an e-reverse auction. Add for 30% gain.
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• Market grapevine has it that *Chennai Petroleum* may garner FY23 EPS of about Rs 225. The share is going cheap. Buy.
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• *Jullundur Motor Agency (Delhi)*, among the largest auto spare parts distributors catering to about 75,000 dealers, is expected to notch FY23 EPS of Rs 11+. Buy for 30% gain.
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• Heavy investment buying is seen in *Shriram Properties*, which made an IPO at Rs.118 in December 2021. The share may appreciate by 25%. Buy.
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• Debt-free *Sandesh Ltd*, Gujarati daily with 7 editions, has notched 50% higher H1EPS of Rs 75.7, which may take FY23 EPS to Rs.150 from Rs 119 in FY22. Add for 25% gain.
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• *Time Technoplast* has received a Rs. 75 cr. repeat order from Adani Total Gas to supply CNG Cascades made from Type-IV Composite Cylinder. Add.
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• *Cigniti Ltd* , global leader in Independent Quality Engineering & Software Testing Services, has posted 77% higher H1 EPS of Rs 26.2, which may lead to FY23 EPS of Rs 52+ as against Rs 32.7 in FY22. Buy for 30% gain.
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• *Shreyans Industries*, manufacturer of writing & printing paper, has posted 202% higher EPS of Rs 21.1, which may take FY23 EPS to about Rs 35. Buy for 30% gain.
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• *Uflex Ltd* , market leader in flexible packaging and undergoing expansion, has notched 30% higher H1 EPS of Rs 78.3, which may lead to FY23 EPS of Rs 185+ against FY22 EPS of Rs 152. The share may advance by 30%. Buy.
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• With *Reliance Industries* venturing into chocolates with the acquisition of *Lotus Chocolate*, Gujarat based chocolate manufacturer Dangee Dums should be on your radar as it could also be an acquisition target.
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• *Chaman Lal Setia* has given multi-year breakout. The stock has been consolidating for long and has a long way to go. It is one the best rice exporters from India. At Rs.131, it can be bought for a good 50% return.
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• *Lloyd Steel* Industries witnessed good activity in recent weeks. This micro-cap with over 50% promoter holding has diversified into engineering and has business traction. A multi-bagger in the making.
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• Carlyle invested over Rs 3500 cr. in *Piramal (PPL) Pharma* for 20% stake. The stock has corrected to Rs.115 from a high of Rs.200 and should be on your radar for the long term.
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• With FIIs and several MFs lapping up stock of *Nykaa* @ Rs170+, long-term investors can accumulate the stock at Rs 140-150 levels for a safe 50% return.
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• Good short-term gains possible in *Maha Rashtra Apex Corpn* after the sale of Kurlon.
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• *Hindustan Aeronautics* is available at a mouth-watering valuation. A solid order book makes it a safe stock.
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• High risk, high reward bearing investors can look at *Balkrishna Industries and Gokaldas Exports*.
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• *Bonlon Industries*, manufacturer of copper wire and rods, is on an expansion spree and eyeing more countries to export to. Add.
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• NSE listed *Ajooni Biotech* has bagged an export order for its cattle feed products after the success of its Rights issue that will boost profitability. Keep an eye.
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• *Easy Trip Planners* of ‘Ease My Trip’ fame, a leading online travel platform, is offering referral incentives & discounts to shareholders. Its entry in Middle-East markets with its tie-up with Go Air First airline could boost its prospects.
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• *IRB Infrastructure Developers* SPV, Udaipur Tollway Ltd., has raised Rs 700 cr. through NCDs on a private placement basis to refinance project debts. Kotak Bank has given the stock a Buy call.
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• *Dev Information Technology* has acquired a blockchain co. and sold majority stake in Dev X, which will improve its prospects with the proceeds.
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• *HKG Ltd’s * takeover by sugar industrialist, Lava Katti, will benefit by the reduction in GST on ethanol-based companies. Add.
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• *Gautam Gems, a processor & polisher of diamonds, is diversifying into wind and solar energy. Buy.
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• *Ducon Infratechnologies*, a fossil fuel/clean energy company has ventured into Green energy via Hydrogen fuel. Keep this micro-cap on your radar.
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• *Allied Digital Services* is an IT Services co. into designing, developing & deploying digital solutions with end-to-end IT infra services, enterprise applications and integrated solutions. Stock trades at PE of just 8x. Buy for 50% gains in 1 year.
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• *Summit Securities*, holding co. of the RPG Group with Rs 5800 cr. in Ceat, Zensar Tech., KEC Int’l, etc. and Rs 300 cr. in mutual funds, PMS, Spencer & Co. trades at 89% discount to NAV- much lower than other groups. Buy for 50% gain in 1 year.
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*Disclaimer*
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