Money Times Talk
Dated 21 January 23
The ensuing Union Budget is likely to give a big impetus to defence stocks. *HAL and MTAR* must be added for quick gains.
*Wipro’s* Q3 profits grew 2.8% and revenue grew 14.4%. In spite of the slowdown. The share must be held onto.
*IDFC First Bank* posted 36 % higher Q3 revenue and 115 % growth in Net Profit on YoY basis. For 9MFY23, it recorded NP of Rs 1635 cr. against net loss of Rs 197 cr. in 9MFY22, which will surely lead to its re-rating. Stock may touch Rs 200in one year. Buy.
*Dhunseri Ventures* to post better Q3 on the strength of its business income and strong treasury income. With likely FY23EPS of Rs 200+, its share price can reach Rs 600 +. Buy.
Pune builder, *Kolte Patil’s* Q3 bookings were 28% higher at Rs. 561 cr. The realty sector shows signs of return. Buy.
*Zydus Life Science* has received tentative approval through its US arm to market generic Livominavipran capsules to treat depression. Positive for the Company. Add.
*Federal Bank’s* Q3 NP surged 54% to Rs. 804 cr. on strong core earnings and makes it optimistic about all-around growth & performance in the coming quarters. Add.
Through Jio-bp, *Reliance* has tied-up with Citrogen India’s mobility solutions to install DC fast chargers for EVs. Hold.
*L&T* & Norway’s H2Carrier to develop floating green energy ammonia for industrial use. A big positive. Buy.
*Karnataka Bank* is poised for a new high in its Centenary year. Its Q3 Advances grew 12.37% and CASA stood at 31.91 % while core deposits were Rs.84,592.60 cr. These are big buy signals.
Metals recycler, *Gravita India*, is upgraded by Brickwork Ratings to A2+ indicating better business visibility. FIIs are also adding this scrip to their basket. Add.
*Central Bank’s* strategic co-Lending partnership with Mamta Projects to offer MSME loans at competitive rates and will help the bank to expand its product portfolio.
*Lupin* has USFDA tentative approval to market its generic version of Dolutegravirr and Ripivirine in the treatment of HIV infection. A big positive. Add.
*Spencer’s Retail* is foraying into a new hypermarket format to target value-conscious customers in tier-II towns and beyond. Buy with a two years horizon.
*Raymond* to focus on the big Indian wedding market by setting up 45 out of 80 ethnic wear stores planned. Add.
*TCS* is confident of closing FY23 with 25% margin led by higher efficiency. Hold.
*Bank of Maharashtra,* a divestment candidate, posted a robust Q3 with NP rising to Rs. 775.03 cr. The bank has the highest CASA ratio in the industry at 52.50%. A big buy.
*PTC India* to offload 20% stake to a strategic partner. Some big conglomerates are said to be in the fray. Add at current prices.
A consistent drop in windfall tax is good news for upstream oil companies like *ONGC, RIL, and Oil India*. Accumulate them in small lots.
*ICICI Lombard’s* Q3 NP rose 11% to Rs. 353 cr. The general insurance business continues to remain strong. A good long-term haul.
*Adani Enterprises’* pilot project to develop a hydrogen fuel cell electric truck with Ashok Leyland and Ballard Power. Hydrogen is the fuel of tomorrow. Add Adani or buy from its FPO.
*ITC* to buy ‘Yoga Bar’ (Sproutlife) in a cash deal over 3-4 years. This will help ITC enter the Rs. 4500 cr nutrition market. Add.
*Vedanta* to acquire debt-ridden Meenakshi Energy, an independent power producer, for Rs. 1440 cr. for its 1000 MW power plant in Nellore (AP). Add for the long term.
The Govt. to scrap all vehicles reaching 15 years of age. A big business opportunity for *MSTC*. Add.
*Indusind Bank* posted 58% higher Q3 profit of Rs. 1964 cr. on the back of higher NIM at 4.27%, which is one of the highest in the industry. The bank is sure to be ranked higher . Buy.
*Siemens* received its single largest order of Rs 26,000 cr. for 1,200 locomotives of 9,000 horse power each over 11 years with 35 years of full-service maintenance from the Indian Railways. Add for long term gains.
The Government of Tripura has signed a MoU with NTPCRenewable Energy to develop large sized renewable energy projects in Tripura. Buy *NTPC*.
Morgan Stanley Asia bought 1.98 lakh shares of Tata Steel subsidiary *Tata Metaliks* via open market transactions at an average price of Rs 834.67 per share. Accumulate.
Quant Mutual Fund purchased 10 lakh shares of winemaker *Sula Vineyards* via open market transactions at an average price of Rs 361.82 per share. Buy for the long term.
*Phoenix Mills* has acquired 100% of Janus Logistics and Industrial Parks for Rs 26 cr. Janus owns 33 acres of land parcel in Haryana. Buy.
Swan Energy has raised its stake in *Veritas (India)* to 43.58% from 40.54% earlier having bought 3.04% stake from the earlier promoter Niti Nitinkumar Didwania on 13th January. Add for the long term.
Ashoka Kandi Ramsanpalle Road, a special purpose vehicle (SPV) of *Ashoka Buildcon*, has got the completion certificate for 37.92 km out of 39.98 km total project highway in Telangana. The share looks good for investment.
*DroneAcharya Aerial Innovations* has tied-up with Thailand’s AIT Entrepreneurship Centre for drone and GIS development projects. With this collaboration, the co. will begin operations in Southeast Asia. Buy on declines.
*Cigniti Technologies* to accelerate Digital Assurance and Digital Transformation of global companies with LambdaTest that helps developers and testers ship codes faster. Over 10000 customers and 2+ million users in 130+ countries rely on LambdaTest for testing needs. Buy Cigniti for decent gains.
*Federal Bank* with 1333+ branches and 1900+ ATMs/Recyclers across India has notched 56% higher Q3 EPS of Rs 4 and 60% higher 9MFY23 EPS of Rs 10.4, which may take FY23 EPS of Rs 15+. A reasonable P/E of 10.5x could take its share price to Rs 157. Buy.
*Canara Bank* has a network of 10391 branches and 10830 ATMs and has clocked a 94% higher Q2 EPS of Rs 14.9 and 77% higher H1 EPS of Rs 26.9, which may lead to FY23 EPS of Rs 58+. Buy for 30% gain.
*Vikas Lifecare‘s* infra division has posted Rs 63 crore in sales as at 31st December 2022 after bagging a new order. It has exceeded the targeted sales volume by 5 per cent. Buy.
*Mishtann Foods* posted 70.14% higher Q3 profit of Rs 13.70 cr. from Rs 8.05 cr. YoY on 10.8% higher sales of Rs 163.64 cr. The promoter has been raising his stake through open market purchases as co. ventures into grain-based ethanol. Add.
*Hi-Tech Pipes* has signed an agreement with the UP Government to set up a steel manufacturing facility at an investment of Rs 510 crore. Buy.
*Salasar Techno Engineering* has won an order of Rs 143 cr. from Nepal Electricity Authority that will further strengthen its robust order-book and yield good margins. Add.
*Rama Steel Tubes* to invest Rs 600 cr. in UP on a steel processing unit to support its capacity expansion and strengthen its position in the steel tubes and pipes space. Buy.
*Advik Capital* gets RBI nod for acquisition of shares by Vikas Garg who along with a professional banker will head the co., which posted 108% higher Q2 revenue QoQ and 550% higher Q2 net profit. Invest for decent returns.
Promoter holding in *HKG Ltd.* shot up from 4% to 26% QoQ as Sugar & Ethanol are sunrise sectors now. New management includes Sugar Barons Nikhil and Lava Katti. Buy.
*R & B Denims,* a vertically integrated textile unit, manufactures 30 million metres of denim plans forward integration to manufacture denim garments under its brand. Buy.
*Vikas Ecotech’s* R&D division has tied-up with King Khalid University of Saudi Arabia to strengthen its R&D, Technology Transfers, to boost its growth prospects. Keep on Radar.
On Friday’s negative market, a bullish breakout was seen in *Kolte Patil* Developers as it reported its highest ever quarterly sales of Rs.716 cr. up 28% YOY. Keep it on your radar.
A powerful bullish breakout was also seen in *Kamat Hotels* with volumes on Friday. Its H2 may be spectacular as room tariffs have been aggressively hiked and it is likely to get Rs.125 cr. from sale of a hotel in Andheri. Keep it on your radar for very good returns.
Dividend paying *Samkrg Pistons* is a debt-free auto ancillary available at PE of just 9x compared to its peers commanding a PE of 20 to 81. Its H2 may be very good due to the boom in the auto sector. Buy for 30% gain.
*ITL industries* posted 45% higher Q3 net profit of Rs.3.77 cr. on its small equity of Rs.3 cr. It provides special purpose machines to the booming defence, forgings, heavy engineering, railways etc. Buy for 30% gain.
On Friday’s negative market, a bullish breakout was seen in *Swan Energy* with volumes. Keep it on your radar.
*Datamatics* came out with excellent results and its guidance is bullish. This cash rich company deserves attention.
IT sector has performed better than expected. *TCS and Infosys* remain attractive bets.
*Ruby Mills* is a safe bet in the real estate sector. Regular leasing income and expanded area approved will ensure good returns.
*Tata Power* will lead in clean & green energy by 2025 as it aggressively expands in this sector and targets 1lakh EV charges in the next 3 years. Add this stock for 30% returns in 1 year and 100% returns in 3 years.
*Rain Industries,* largest global producer of coal tar pitch and second largest manufacturer of calcined petroleum coke is into advanced materials and cement production. The stock trades at attractive valuation of 5PE and may give 40% returns in 1 year.
Micro-cap *Alpa Laboratories* has 1500+ products in its portfolio many of which were in great demand post Covid pandemic given the acute rise in cold and cough cases. It also exports its products. The stock trades at PE of 31.2x but can go big considering the market size and its offerings in this sector.
*Globesecure Technologies*, an IT micro-cap of just Rs 89 cr., is focused on cyber security with marquee clients. This stock is expected to reach new hights being the only listed stock in this space. Its liquidity will increase as its lot size stands reduced from 4000 to 2000.
*IDBI Bank’s* privatization has attracted ING Bank of Netherlands and Middle East Bank from the Emirates. Canadian Warren Buffet, Prem Watsa of Fairfax and owner of CSB Bank, Thomas Cook and Quess Corp is a serious contender. Buy for quick 10 to 20% gains.
*Container Corporation of India* is next in the divestment pipeline and its road show has begun. The Adani group is a serious contender as this PSU has great synergies with their port business. Buy for quick 10 to 20% short term gains.