MONEY TIMES TALK
NOVEMBER 11, 2023
As per *market veteran* there is madness in SME IPOs and allotments due to high valuations as most SME stocks declared poor H1FY24 results confirming the game of operators. Investors should not be greedy and chase brass thinking it’s gold!
*Anupam Rasayan,* declares first interim dividend of 5% and fund-raising plans by preferential allotment of Rs.180 cr. to the promoter group at Rs. 945.11/share and convertible warrants totalling Rs. 370 cr. at the same price to FPIs to reduce debts and working capital needs.
*Shriram Pistons & Rings* notched 55% higher Q2 EPS of Rs.25.8 and 68% higher H1 EPS of Rs.48.9, which may lead to FY24 EPS of Rs.100+. Add for 25% gains.
*Nile Ltd*. notched 204% higher Q2 EPS of Rs.27.2 and 45% higher H1 EPS of Rs.44.1, which may lead to FY24 EPS of Rs.90+. Add.
*Voith Paper Fabrics* notched 26% higher Q2 EPS of Rs.22 and 30% higher H1 EPS of Rs.44, which may lead to FY24 EPS of Rs.95+ from Rs.72.3 in FY23. Add for sharp gains.
*Repco Home Finance* notched 47% higher Q2 EPS of Rs.15.5 and 39% higher H1 EPS of Rs.31.7, which may lead to FY24 EPS of Rs.68 from Rs.35.4 in FY23. Add for decent gains.
*Bank of India* notched 76% higher Q2 EPS of Rs.3.7 and 139% higher H1 EPS of Rs.7.5, which may lead to FY24 EPS of Rs.16 from Rs.9.4 in FY23. Add.
*Deep Industries* notched 241% higher Q2 EPS of Rs.4.6 and 119% higher H1 EPS of Rs.9.5, which may lead to FY24 EPS of Rs.28 as against FY23 EPS of Rs.13.8. Accumulate.
*NR Agarwal Industries* notched 38% higher Q2 EPS of Rs.22.2 and 31% higher H1 EPS of Rs.46.1, which may lead to FY24 EPS of Rs.80+ from Rs.58.4 in FY23. Buy.
*Morganite Crucible* notched 113% higher Q2 EPS of Rs.14.9 and 93% higher H1 EPS of Rs.28.8, which may lead to FY24 EPS of Rs.65+ as against Rs.28.9 in FY23. Add for the long term.
*RPP Infra Projects* notched 844% higher Q2 EPS of Rs.4.4 and 417% higher H1 EPS of Rs.7.3, which may lead to FY24 EPS of Rs.17+ as against Rs.7.7 in FY23. Add for 25% gains.
*Sharda Motors* notched 46% higher Q2 EPS of Rs.26.9 and 35% higher H1 EPS of Rs.45.5, which may lead to FY24 EPS of Rs.82 as against Rs.70 in FY23. Buy.
*Raymond Ltd*. reported flat Q2 earnings at Rs.162 cr. on 3.9% higher revenue of Rs.2253.4 cr. Sell.
*Birla Corp’s* Q2 profits stood at Rs.58 cr., on improvement in its cement business from a loss of Rs.56 cr. in Q2FY23. Hold.
*Trent* is now on the radar of most analysts after excellent Q2 results. Add in small lots.
*Welspun Corp* notched Q2 EPS of Rs.14.64 from a negative EPS of Rs.21.16. A big positive. Add.
*GMDC* stock prices posted a strong rebound given its future prospects. Risk-bearing investors may add.
*Dabur* has cash reserve of Rs.7000+ cr. and plans acquisitions. Entry into online business is a distinct possibility. Add for the long term.
*Pantajali Foods* Q2 profits doubled to Rs.255 cr. This Indian FMCG deserves a place in every portfolio. Add.
*Entertainment Network* Q2 NP stood at Rs.6.9 cr. as against a loss in Q2FY23. Add.
*Mayur Uniquoters* regularly reports good results given its strong foothold in the automobile and furniture markets and is poised to grow. Add.
*Piramal Pharma* is looking to grow revenues, reduce debts and control costs in H2FY24. Add for the long term.
*Zydus Lifescience* Q2 NP grew 53% to Rs.801 cr. on the back of growing sales in India and US. It expects a better H2. Add.
*Reliance Industries* intends to raise Rs.20,000 cr. via bonds with a coupon rate of 7.75-7.8%. The funds will be used to refinance existing debts. A safe investment bet. Add.
*Alkyl Chemicals’* Q2 EPS fell 50% to Rs.5.33 from Rs.9.74 in Q2FY23. Sell now and enter later.
*Hawkings Cookers* notched Q2 EPS of Rs.66.58 from Rs.58.28 in Q2FY23. It hopes to cross FY23 profits by a wide margin. Add for the long term.
*Prince Pipes* reported excellent Q2 and H1 results. A big positive. Accumulate.
*Alkem Laboratories* reported an excellent Q2 results with an EPS of Rs.51.90. Add for the long term.
*Bharat Forge* Q2 NP rose 52% to Rs.215 cr. on all-round growth. Add.
*Bajaj Finance* plans to raise Rs.8772 cr. via placement of at Rs.7250/share to augment business development plans. Add.
Many analysts feel that *Zomato* has room for growth in the next few months. Add for 25% gains.
*Nykaa’s* Q2 NP rose 50% to Rs.7.8 cr. on 22% higher revenue. A big positive. Add.
*Crest Ventures* notched Q2 EPS of Rs.11.41 from Rs.2.70 YoY. It is debt free and promoters hold 69.11% and FPIs hold 5.29%. It trades at a P/B of 0.80x and has a RoE of 50.47%, RoCE of 64.98% and RoA of 39%. Add for magnificent gains.
*Cravatex* notched Q2 EPS of Rs.12 and has sold off its loss-making Indian subsidiary. It is highly undervalued as compared to its peers. Add for 25% gains.
*Cosmic CRF* H1FY24 NP grew 744% to Rs.6.79 cr. from Rs.80.49 lakh YoY. Its expansion plan will boost sales and profits going ahead. Buy for 25% gains.
*Aartech Solonics* posted Q2 PAT of Rs.0.36 cr. on sales of Rs.83 cr. as against a loss of Rs.2.06 cr. YoY. It is almost debt free. Add for hefty gains.
*Urban Enviro* H1FY24 PAT grew 1091% to Rs.400.09 lakh from Rs.30.39 lakh in H1FY23 on higher revenue of Rs.4645.98 lakh. Some HNIs are accumulating this counter. Add for multi-bagger gains.
*IND swift laboratories* Q2 PAT rose 76% to Rs.31.65 cr. from Rs.17.24 cr. QoQ. It notched H1FY24 EPS of Rs.8.28, which may lead to FY24 EPS of Rs.16+. It trades at a P/E of 6x and has a BV of Rs.123. It has a RoCE of 13.3% and RoE of 9.59%. Add.
*Markolines Pavement’s* promoters hold 72.18% and DIIs hold 1.82% stake. It has orders worth Rs.385 cr. as of FY23 and Rs.500 cr. are under way having received 2 big orders worth Rs.72.33 cr. Its H1 results are on 14 November. Add.
*Amines & Plasticizers* Q2 PAT rose 149% to Rs.9.29 cr. from Rs.3.72 cr. YoY. Its compounded profit growth is 34% in last 10 years. It has a RoCE of 16.1% and RoE of 13.3%. It is now listed on NSE also. Add for 25% gains.
*Compucom Software* Q2 PAT zoomed 401% to Rs.3.71 cr. from Rs.74 lakh QoQ. The promoters hold 71.37% and HNIs Rithik Munoth holds 1.09% stake. Buy for 25% gains.
*Gujarat Pipavav Port* Q2 PAT rose 52% to Rs.10.77 cr. from Rs.7.09 cr. YoY. An interim dividend of 36% was declared. Keep it on your radar.
*Grauer Weil* Q2 PAT grew 34% to Rs.37.46. cr. from Rs.27.99 cr. YoY. It is debt free and has an equity of Rs.22.67 cr. and reserves of Rs.656 cr. The promoters hold 69% stake. Add.
*Gufic Biosciences*, which allotted 33,33,000 shares to Motilal Oswal at Rs.300/share recently, is available around Rs. 263 and set to cross yearly high of Rs.339. Add.
*Himatsingka Seide* H1 EBITDA rose 195% to Rs.308.39 cr. from Rs.104.70 cr. YoY. It continues to witness stable demand due to an expanding client base and has launched the ‘Himeya’ brand in the last quarter. Stock may cross its 52-week high of Rs.166. Add.
*Indo Amines* Q2 PAT grew 130% to Rs.12.91 cr. from Rs.5.61 cr. YoY. The promoters hold 66.87% stake. It has a RoCE of 17.4% and RoE of 19.6%. Stock may cross its 52-week high of Rs.140. Add.
*Panasonic Carbon* posted H1FY24 PAT of Rs.9.13 cr. from Rs.7.20 cr. YoY. Its equity of Rs.4.80 cr. is supported by reserves of Rs.139 cr. The promoters hold 63.27% stake. It has a RoCE 12.4% and RoE of 9.13%. Add for 25% gains.
*BPL* posted excellent results having licensed Reliance Retail to sell its TVs, washing machines, refrigerators and ACs. It has a BV of Rs.50+ and a mktcap of less than Rs.500 cr. It also holds stake in BPL Medical Devices. Add.
*Modern Diaries* came out of NCLT and posted excellent results. A big positive. Add for hefty gains.
*Ceinsys Technologies* bags orders from Maharashtra for deployment of IOT in water supply and sanitation department. Stock has corrected 20% and offers a good opportunity for gains. Add.
*Centrum Capital* holds 50% stake in Unity Small Finance Bank is expected to do well going ahead. The bank’s NPA declined 5% and Net NPA declined 1%. It now boasts of a deposit of Rs.40,000+ cr. Add.
*Heranba Industries*’ export comprises 48% of its sales, which will grow further in USA and EU. It trades at a P/E of 10x on FY24E. Add for 40% gains.
*Petronet LNG* is a Mini Ratna among the PSUs. It trades at a P/E of 9x. Add for the long term.
*Anmol India* Q2FY24 PAT rose 70% y-o-y and EBITDA grew 98.79% to Rs.9.88 cr. It strategically places stronger emphasis on technology-driven solutions to elevate its operations. Add.
*UR Sugar* to diversify in the procurement, sale, export and trade of a wide spectrum of raw materials, intermediaries and derivatives within the realm of sugar and its by-products. Add.
*Varanium Cloud* managed to create a thriving corporate culture in the Sindhudurg region, a first of this scale, while simultaneously enhancing margins. Add.
*Gujarat Tool Room* bags order worth Rs.416 cr. which marks a strategic expansion in exquisite ornaments. A big positive. Add
*Caplin Point* is a cash rich company which is on a sustainable growth path. It is available at attractive valuation. Add.
*Phoenix Mills* posted excellent results. With commissioning of new malls, its future is even better. Add.
*Marksans* is progressing very well and is cash rich. It has a bright future. Add
*L&T Finance Holdings*, a NBFC, has good fundamentals with promoters like L&T and appears highly undervalued when compared to its peers.