TOWER TALK
14 January 23
The government and LIC together to sell their 60.72% stake in *IDBI Bank*. The bids received can trigger its stock price to shoot up. Add.
*TGV SRAAC* Ltd.could record FY23 EPS of Rs 46+. Even a conservative PE of 5x will take its share price beyond Rs 230 against the Specialty Chemicals industry average PE Ratio of 12.98x. Buy and hold for the medium term.
In the FY24 Union Budget on 1st Feb, huge sums may be allocated for modernising the defense forces. *HAL* will be one of the biggest beneficiaries. Buy.
to spend Rs18,000 cr. on the upkeep of Vande Bharat trains. *Texmaco Rails* can be a big beneficiary. Add.
‘Recycle or perish’ is the new mantra. *Gravita* with plants across the globe is set to reap a big harvest in recycling metals and plastics. The share may double in 15 months. Buy.
*Lal Path Labs* plans to ramp up its western India operations. A positive for the Company. Add.
The pessimism at the hawkish stance of the RBI has led to high expectations about banks. Add *Karnataka Bank* for further gains.
*Affle India* to be a big beneficiary of the PLI scheme for producing many electronic items that were hitherto being imported. A good long-term haul.
The rising volumes and share price of *PFC* suggest the long-awaited Bonus issue and better Q3 results to be declared shortly. The 2nd interim dividend is likely to be around Rs. 6. Add
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A big rebound in the automotive industry and strong prospects of growth may drive the stock price of *Samvardhana Motherson* to higher levels. Add.
*Sona Comstar* acquires Serbian sensors maker Novelic and has now started building a third business vertical of ADAS Sensors and Software to enhance vehicle autonomy and automation. A good buy.
*Container Corporation* posted 5% higher Q3 throughout of 10.85 TEU (twenty-foot equivalent units) YoY. The profits for the quarter are likely to be higher. Add.
In a TV interview, the *MTAR* MD said that it expects to witness exponential growth in coming quarters. Add for good returns.
*Poonawalla Fincorp* to raise Rs. 4000 cr. to meet its growing business requirements. A good investment bet.
*Infosys* posted 9.4% growth in NP to Rs. 6548 cr. Its management has signaled revenue growth in FY23 and that attrition rates are falling. Positive for the company. Add.
*Ganesh Housing* is attracting investor interest. Some good news may be in the offing. Risk-bearing investors may enter with strict stop-loss limits.
*Bank of India* to declare Q3 results on 17th Jan. Expectations are high. A good short-term and long-term haul.
JP Morgan and Bank of America have downgraded *Airtel* ratings citing delays in tariff hikes. The shares are likely to be dumped by investors. Sell now and consider buying later.
*Sterling & Wilson* to foray into EV gear and charging equipment, Hydrogen Gsensets, etc. for domestic and export markets. The new business will give a big boost to the Company. Add.
*Paytm* shares are falling on the back of big sale by anchor investors. The trend may continue. Bottom fishing not advisable. Sell and stay away.
*Anand Rathi Wealth* posted 20% higher Q3 revenue of Rs. 140 cr. with 35% rise in NP to Rs. 43 cr. Its AUM (assets under management) has surged to Rs. 1017 cr. Add.
*Allcargo* has acquired 75% stake in European rival, Fair Trade, for Euro 12 mn that has a fair value around Euro 16mn. Add.
*Tata Motors* has stated that EVs may constitute 50% of its sales by 2030. The gigantic ambition merits a buy.
*Rail Vikas Nigam’s* joint venture with ISC Projects has been awarded the supply and commissioning of ballastless track for the Surat Metro Rail Project Phase-1 worth Rs. 166.26 cr. With a higher book-to-bill ratio, the share can be bought for medium-term gains. Add.
GoI and LIC will sell their 60.72% stake in IDBI Bank as part of the disinvestment and the government’s stake will reduce to 15%. Buy LIC and *IDBI Bank* for good gains.
*Mukand Ltd.* has transferred 45.94 acres of land at its Kalwe/ Dighe facility in Thane, Maharashtra, to AGP DC Infra Two Pvt. Ltd. for Rs 796.46 cr. Buy
*HCL Technologies* is the primary IT partner of ODP Corporation’s end-to-end IT operations and enterprise-wide digital transformation to support ODP’s business strategy in its Office Depot, ODP Business Solutions and Veyer business units. Add.
*National Fertilizers* has clocked 9MFY23 growth of 27% in fertilizer sales of YoY. It reported total fertilizer sales of 49.71 lakh MT compared to 39.25 lakh MT, which is the best in its history. Add on declines.
Heavy investment buying is seen in *J Kumar Infra* as it notched 67% higher Q2 EPS of Rs. 9 and 76% higher H1 EPS of Rs. 17.1, which may lead to FY23 EPS of Rs. 36 on its strong order book. Accumulate for 30% gain.
*Dhruv Consultancy Services* has bagged an order of Rs 11.18 cr. from the National Highways Authority of India, Navi Mumbai. Buy for the long term.
*Antony Waste Handling Cell* notched 28% higher Q2 EPS of Rs. 8.2 and 34% higher H1 EPS of Rs. 16.5 in as against FY22 EPS of Rs. 24 and is doing well with good orders from all quarters. It may notch FY23 EPS of Rs. 38+. Accumulate for 30% gain.
Buy under-priced *Chamanlal Setia* for 20% gain as govt. lifts rice export curbs as the domestic supply improves. Based on the current trend, it is expected to notch FY23 EPS of Rs 18. Buy.
*GIC Housing Finance*, a PSU, has notched 24% higher Q2 EPS of Rs. 10.4 and 99% higher H1EPS of Rs. 17.7 as against Rs. 32.2 in FY22. This could lead to FY23 EPS of Rs 45. Buy for 20% gain.
*Rain Industries* with a global calcination capacity, CPC blending, coal tar distillation, advanced materials and cement production in 8 countries has notched 71% higher Q3CY22 EPS of Rs. 12 and 100% higher 9MCY22 EPS of Rs. 40 as against Rs. 17.3 YoY. This could take CY22 EPS to over Rs. 45. Buy for 30% gain.
*Shilp Gravures*, the pioneer and leader in Electro-Mechanical Engraving, has garnered 68% higher Q2 EPS of Rs. 6.4 and H1 EPS of Rs. 7.8 which may take FY23 EPS to around Rs. 18+ on its equity of Rs. 6.1 crore. Buy for 30% gain.
*Geekay Wires*, manufacturer and exporter of variety of steel wires, has notched 79% higher Q2 EPS of Rs. 3 and 78% higher H1 EPS of Rs. 5.8 as against Rs. 8.7 in FY22. It is all set to garner FY23 EPS of Rs. 14 on the back of solid demand in India and abroad. Buy for 30% gain.
*Sarveshwar Foods* of J&K is more than a rice processor with the ‘Nimbark’ brand of organic foods and is raising fresh capital at Rs.81/share for future growth. Keep it on radar for good gains as most rice processors have given ample returns.
Debt-free & good dividend paying *Sinclair Hotels* has 9 iconic hotels but available at attractive valuation and is the cheapest hotel share. It recently sold 1-acre extra land in Kolkata for Rs.27 cr. and has huge cash reserves. Keep it on your radar for multi-bagger returns.
*RCF Ltd*. is the 4th largest producer of fertilizers and recorded its highest ever quarterly performance due to shortage in global markets. Its H2 working should also be very good. Stock is available at an attractive valuation & FIIs are raising their stake. It could be a jackpot share!
*Nelcast* manufactures grey & ductile castings for automobiles & railways. Around 25% of its revenue is from exports and the depreciating Rupee is beneficial. Buy for 20+ gain.
*Mishra Dhatu Nigam,* manufacturer of special steels & super alloys for defence, nuclear, aeronautics & space applications, has set up an armour facility at Rohtak to be commissioned shortly and will be a big game changer. Keep it on your radar for very good return.
*Kolte Patil* reported its highest ever quarterly sales of Rs.716 cr. up 28% YOY. Keep it on your radar.
On Friday, 13th January, a multi-year bullish breakout was seen with volumes in *Kamat Hotels*. Keep it on your radar for very good returns in the short term.
Regular dividend paying *Samkrg Pistons* is a debt-free auto ancillary available at PE of just 9x compared its peers commanding a PE ranging from 20 to 81. If it closes above its 52-week high of Rs.195, a new trading range of Rs.225-250 can open up.
Dividend paying *Cochin Minerals & Rutile* posted H1 net profit of Rs.26.66 cr. on its small equity of Rs.8 cr. giving an annu1lized EPS of Rs.68. Keep it on your radar for quick 20-30% gain.
100% dividend paying *WPIL Ltd*. posted 37% higher H1 net profit of Rs.47.89 cr. It has huge reserves of Rs.646 cr. on its small equity of only Rs.9.77 cr. Promoters hold 70.69% and are buying shares from the market, which is a positive sign. Keep WPIL on your radar for very good returns.
*Duroply Industries* posted H1 net profit of Rs.2.25 cr. v/s loss of Rs.3.49 cr. in H1FY22. Results in H2FY23 may be better due to boom in real estate. If stock closes above its 52-week high of Rs.193, a new trading range of Rs.225-250 can open up.
*Universal Auto Foundry* posted 1825% higher H1 profit of Rs.5.39 cr. v/s only Rs.28 lakh in H1FY22. Its H2FY23 may be better due to the boom in the auto sector. Keep on your radar for very good returns in short term. If it closes above its 52-week high of Rs.148, a new trading range Rs.175 to 200 can open up.
*Larsen & Toubro* continues to attract big orders. Its subsidiaries are money spinning machines. A reasonable valuation makes this counter attractive.
Small IT projects are less prone to be shelved and smaller IT companies do not face problems of attrition. In this space, *Datamatics Global* is worth considering.
The Godrej group is aggressive on growth and *Godrej Agrovet* is a new runner from the group.
*Heranba Industries* is into agro-chemicals with almost 48% sales from exports. Stock trades at just 9x FY23E earnings. Last 3 years ROCE was 42%. It’s a debt-free co. with strong promoter holding. Buy for 40% returns in 1 year.
*Veto Switchgears & Cables* manufactures domestic cables, industrial cables, electrical accessories & LED lighting. It is now focusing on sales by expanding its distribution network. The stock trades at a PE of just 7x to FY23E earnings. Buy for 40% returns in 1 year.
*BCL Industries*, one of the largest grain-based distilleries and alcohol producer, has announced a major fund raising by a preferential issue of convertible warrants to fund its expansion plans. Buy.
*Ducon Infratechnologies*, a leading fossil fuel/clean coal co. is venturing into green energy via Hydrogen fuel. It installed India’s first sea water flue gas desulfurization system for Reliance Energy. With more green energy units lined up, it has great prospects. Buy.