#InvestmentIdeas

MONEY TIME TALKS
16 January 2022

• Jubilant FoodWorks to consider stock split on 2nd Feb along with Q3 results. Although its fundamentals won’t change, it will improve liquidity and the share may rise. Add.
•
• CNG gas prices are being hiked again in Mumbai. Add MGL (Mahanagar Gas).

• *Alembic Pharma* gets USFDA nod for its Dronedarone Tablets to reduce the risk of hospitalization in sinus-related tria fibrillation cases in patients. Add.
•
• *Oberoi Reality* reported strong Q3 sales on the back of heavy bookings. Strong sales of Rs. 1965 cr. will result in higher profits. The Company is also aggressively adding land banks. Buy.
•
• *Gravita* trades at a PE of 20 against the industry average of 44. In Q2, it posted twofold jump in profit to Rs. 37 cr. on 61% rise in revenue. Long-term profits to grow exponentially as its Rs. 300 cr. QIP will enhance capacities. A screaming buy.
•
• The Watch list of a veteran market man for this week includes *Akar Auto, Ang Lifesciences, Banswara Syntex, Denis Chem Lab, Orissa Minerals, Ruchira Papers and Tgv Sraac*.
•
• *Vi* has raised Rs. 5000 cr. via short-term bank loans. Its equity will also get diluted after the Govt. picks up a big stake in exchange for huge spectrum dues. It would be prudent to sell this expensive stock.
•
• RIL may take over the ailing *Sintex Industries*. Risk-bearing investors may add it in small quantities.
•
• *Aurobindo Pharma* to sell a 30-35% stake in its injectables business to PE funds for about Rs. 5000 cr. This may be profit accretive for present investors. Stay invested.
•
• P.Morgan expects the share of *NMDC* (a PSU Navratna ) to touch Rs. 210 in the next few months. The Company recently paid an interim dividend of Rs. 9 per share. The next likely payout is due soon. Keep accumulating.
•
• In an attempt to swap loans bearing lower interest and bring down funding costs, *Vedanta* plans to raise $1 bn. A positive for the Company. Add.
•
• *Imagicaaworld Entertainment* has temporarily shut its theme park and water park in view of the rising Covid-19 cases. This will put pressure on its finances. Sell and stay away for some time.
•
• The Union Budget is likely to make a big allocation for the *Defence sector*. Buy *Bharat Dynamics*, which is all set to capture the market with its latest missiles.
•
• *JTL Infra* has posted 160% higher Q3 profit of Rs. 13 cr. on 130% rise in revenue. Add.
•
• *Tata Tele* rose 3000% last year and 12800% in the last two years (from Rs. 2.25 to Rs. 290) The Company continues to report losses. Best time to exit the stock.
•
• *Federal Bank* plans to divest its NBFC arm (Fedfina) either by way of an IPO or partial offer for sale coupled with an IPO. The share may be retained for some time in view of value unlocking opportunities.
•
• *JSW Steel* is quite bullish on demand for steel due to the pent-up demand from infrastructure and fresh demand from auto and appliances.
•
• Mercedes-Benz India to assemble its flagship EV in India. *Force Motors* will be a big beneficiary as it already makes engines for this automobile giant.
•
• *MindTree*’s Q3 PAT grew 10% Q-o-Q to Rs 438 cr. nearly 35% YoY. The share may witness higher prices in time to come. Add.
•
• *Reliance Industries* to invest Rs 5.95 lakh cr in green energy and other projects in Gujarat in 10 to 15 years. It is also likely to acquire 4.5 lakh acres in Kutch for its various projects. An excellent long-term investment bet.
•
• *Aurionpro Solutions*, a JV of Tata Power and Odisha Govt., has won orders for putting up data centers across Odisha. In Q2, its profits surged 173.85% to Rs 19.58 crore on a 39.40% rise in net sales to Rs 122.23 cr. The share may be accumulated.
•
• Integrated metal producer, *Shyam Metalics* has invested Rs 464 cr. in capex and repaid debts of Rs 469 cr. It has notched 156% higher Q2 EPS of Rs 16.1 and 262% higher H1 EPS of Rs 35.4, which could take its FY22 EPS to over Rs 75. Buy for 30% gain.
•
• *Shiva Mills*, a demerged entity of Shiva Texyarn, manufactures cotton yarn with 10.65 MW of wind power from the Bannari Amman group, has notched Q2 EPS of Rs 5.5, and H1 EPS of Rs 10, which may lead to FY22 EPS of Rs.20+ against FY21 EPS of Rs 9.8. The share could appreciate by 50%. Add.
•
• *Ind-Swift Laboratories* with six manufacturing plants and multiple verticals at multi locations with stringent USFDA regulatory approval has notched 141% higher Q2 EPS of Rs 4.1 and 192% higher H1 EPS of Rs 7.3 against Rs -0.5 in FY21. This may take FY22 EPS to Rs 15+. Buy for 30% gain.
•
• *Indian Metals & Ferro Alloys* has prepaid term debt of Rs 181 cr. paring its long-term debt to Rs 144 cr. to turn net debt-free and declared 1:1 bonus.It notched 228% higher Q2 EPS of Rs 26.6 and 255% higher H1 EPS of Rs 45 (ex-bonus) as against Rs 31in FY21 (ex-bonus adjusted). FY22 EPS could rise to Rs 80 on ex-bonus basis. Accumulate for 30% gain.
• *Bajaj Steel Industries* has registered 30% higher Q2 EPS of Rs 32 (FV Rs 5) and Rs 50% higher H1 EPS of Rs 53.8 as against FY21 EPS of Rs 126. It has been able to tap the US & European market for Continental products and with the ongoing expansion, the share is poised to touch Rs 2000 at a P/E of 12x on FY22 likely EPS of Rs 165. A strong bonus candidate. Buy.
•
• *Jindal Steel Powerv is continuously scaling capacity and efficiencies to capture opportunities. It plans to expand capacity by 85% by FY25 and has notched Q2 EPS of Rs 25.3 against (-Rs 7.6 and 418% higher EPS of Rs 50.3 in H1 in FY21 is expected to notch an EPS of Rs 110+ in FY22 on equity of Rs 102 cr. A reasonable P\E of 7 could take the share price to Rs 770.
•
• With 12 plants across South Asia and a 8,000 strong partner network, *Ramco Industries* is one of the leading building materials manufacturers in South Asia has notched 83% higher Q2 EPS of Rs 17.2 and 56% higher H1 EPS of Rs 26.2 as against Rs 33.4 in FY21. This might lead to FY22 EPS of Rs 45. A reasonable P\E of 8x may take its share price to Rs 360. Accumulate.
•
• *Jammu & Kashmir Bank* posted 150% higher Q2 EPS of Rs 1.4 and 330% higher H1 EPS of Rs 3, which could take FY22 EPS to Rs 8 as against FY21 EPS of Rs 6. The share is expected to fetch a gain of 40%.
•
• *Nahar Industrial Enterprises*, a vertically-integrated textile manufacturer having a 2500 TCD sugar unit has posted Q2 EPS of Rs 8.8 v/s (–) Rs 5.1 and H1 EPS of Rs 17.6 against (-) Rs 2.3 in FY21. This could lead to an EPS of about Rs 35 in FY22. Buy for 30% gain.
•
• Heavy investment buying is seen in *GNFC* manufacturer of fertilizers (32%) and chemicals (68%). It has posted 100% higher Q2 EPS of Rs 18.3 and 265% higher H1 EPS of Rs 33.9, which could lead to an EPS of Rs 75+ in FY22 against Rs 44.9 in FY21. This debt-free share, which made a lifetime high of Rs 548 on 24 Oct 2017, has all the potential to touch Rs 700+ mark. Buy.
•
• *Technocraft Industries*,which makes drum closures, scaffolding, formwork, yarn & fabrics and engineering and design has notched 205% higher Q2 EPS of Rs 26.9 and 158% higher EPS of Rs 54.9 in H1, which could take FY22 EPS to Rs 110 as against FY21 EPS of Rs 53.2. A reasonable P\E of 14x could take the share price to Rs 1540. Buy.
•
• *Ajanta Soya* manufactures Vanaspati, cooking oils with application products for a bakery like biscuits, puffs, pastries etc. has posted 156% higher Q2 EPS of Rs 11.6 and 243% higher H1 EPS of Rs 17 against Rs 15.6 in FY21. This could take FY22 EPS to Rs 40+ in FY22. A P/E of 8x can take the share price to Rs 320. Buy.
•
• *Manaksia Steels* gave a very strong breakout with life time high monthly volumes, which confirms fresh bull-run in this counter. Buy for quick gain.
•
• *KIC Metalics* many posted a sharp turnaround with H1FY22 net profit of Rs.21.52 Cr. v/s loss of Rs.8.53 Cr. in H1FY21. It redeemed Rs.45 Cr. of preference Shares from the recent profits. Its Q3FY22 results on Monday,17th
•
• *Dhampur Sugar* in the field of Chemicals, Distillery, Ethanol, Power & Sugar reported expansion of Distillery at Asmoli from 150 to 250 KLPD is completed. Concentrate for very good return in short to medium term.
•
• *DVL* from the Dhunseri group of Kolkata reported net profit of Rs.156.02 Cr. for H1FY22 v/s Rs.51.63 Cr. for H1FY21 a jump of 202%. Huge reserve of Rs.1834.66 Cr. against equity of Rs.35 Cr. Promoter holding 75%. It paid 25% dividend for FY21. Diversified business. Available at PE of only 3x. Invest for multi-bagger gains.
•
• *Polyspin Exports* has two divisions, FIBC bags & high quality yarn and both are booming. It reported net profit of Rs.4.43 Cr. in H1FY22 v/s Rs. 2.44 Cr. in H1FY21 a jump of 82%. Huge reserve of Rs.44.35 Cr. against very small equity of Rs.5b Cr. FIBC bags are in good demand & yarn prices have risen in the last few months. Buy for good gains in short term.
•
• *Nelcast* is the largest foundry in India for Ductile & grey iron casting. Its products cater to the Railway, construction, mining, general engineering & Indian and global automobiles. Huge reserve of Rs.416 Cr. v/s equity of Rs.17.40 Cr. Buy for good gain in short to medium term.
•
• Sugar stocks are fancied due to the ethanol demand. *Uttam Sugar* reported net profit of Rs.34.63 Cr. for H1FY22 v/s profit of only Rs.20.23 Cr. in H1FY21 a jump of 71%. Ace investor Yogesh Chopra hold 1.21% and Anil Goel family holds 7.05%. Its 52 week high was Rs.307 but is now available around Rs.229.
•
• *Revathi Equipment* reported net profit of Rs.6.01 Cr. for Q2FY22 v/s only Rs.1.07 Cr. in Q2FY21 a mind blowing jump of 462%. Huge reserve of Rs.184.24 Cr. against very small equity of only Rs.3.07 Cr. Promoter holdings 72.58%. Ace investor Dipak Kanaiyalal holds 1.5%. Buy Revathi for very good return in short to medium term.
•
• *SNL Bearings* reported net profit of Rs.5.05 Cr. in H1FY22 v/s only 82 lakh in H1FY21 – a jump of 516%. Big reserve of Rs.40.81 Cr. v/s very small equity of only Rs.3.61 Cr Promoters holding 74.39%. Ace investor M Khedwala holds 2.08%. It paid 45% dividend for FY21. It’s a NRB Bearings group co. Add.
•
• *Veljan Denison* is the cheapest engineering stock. Promoter holding is 75%. It reported net profit of Rs.6.70 Cr. for H1FY22 v/s profit of Rs.1.46 Cr. in H1FY21 a growth of 359%. Buy for multi-bagger gain in medium to long term.
•
• *Vardhman Textiles, Gokak Exports, Infosys, Morarka Finance* recommended earlier are all doing exceedingly well. Looks like the momentum will continue.
• Sugar and ethanol have become structural stories for the coming years. *Praj Industries* is to ethanol what LMW is to textiles.
•
• *Larsen & Toubro* is set to continue its forward march what with its subsidiaries exploding with cash flows with the main line engineering business roaring.
•
• *Chandni Textiles Engineering Industries* board to meet and decide on issue of preference shares to promoters and non-promoters.
•
• *Vama Industries*, a CMMI Level 3 co., has 100% subsidiary in Singapore in hardware, System integration for Enterprise Business, Datacenter is exploring to expand in Internet of Things business.
•
• *Jubilant Pharmova* is an integrated global pharma company in Speciality pharmaceuticals, CDMO and Generics. Stock is trading at attractive valuations of 13 PE. Ace investor Rakesh Jhunjhunwala is increasing his stake every quarter. Expect 50% returns within 1 year.
•
• *B&A Ltd*. with 7 quality tea estates in Assam is likely post FY22 EPS of Rs. 50+ while stock is trading at PE of just 5x. It holds 75% in BA Packing worth Rs.110 cr. more than the market cap of B&A. Buy for 50% returns within 1 year.
•
• *Vishwaraj Sugar* industries has 11000 tonnes per day sugar cane crushing capacity and 150 KLPD Ethanol capacity. Co. recently informed the exchanges that it has developed a technology for sugarcane syrup preservation to enhance ethanol production. Buy for 50% returns in within 1 year.

*Disclaimer*:
• 👉All updates/analysis/posts/discussions are only for education and learning purpose.
• 👉Do consult your financial advisor before taking trades or investment decisions.
👉We are not responsible for any financial losses.