*Money Times Talk*
*July 30, 2023*
*ICICI Bank* Q1FY24 Net profit rose 40% to Rs.9648 cr. Add.
*Gravita* Q1FY24 revenue and NP stood at Rs.727cr. and Rs.52.55 as against Rs.579 cr. and Rs.44 cr. (YoY), respectively. Further it has expansion plans on hand. Add.
*Indraprashta Medical Corporation* share trades at a P/E of 12.86x as against the industry average P/E of 34.77x. It is expected to post excellent results for Q1FY24. Further, if the rumoured merger with Apollo Hospitals materializes, it will boost its stock price. Add for the long term.
*Suzlon* has cumulative orders of nearly 1.6 GW. Its Q1FY24 revenue/EBITDA/EBIDTA margin stood at Rs.1348 cr./ Rs.207 cr./15.4%, respectively. Healthier financials will take its share price to new highs. Add.
*Orient Green* expects a gain of Rs.25 cr. on account of loan swapping with PFC. It also expects good growth in FY24. Add on dips.
Due to a minor problem with suppliers, *Olectra* encountered selling pressure. The current correction offers a good opportunity to Accumulate.
*Jyothy Labs* presented fabulous results for Q1FY24. Its PAT rose 99% YoY to Rs.96.29 cr. The next few quarters are expected to be equally exciting. Add.
*Poonawalla Fincorp* Q1FY24 result was the best in its history with PAT crossing Rs.200 cr. The price momentum may be sustained with improved asset quality, healthier NIM and credit ratings. Add.
*IDBI Bank* Q1FY24 NP rose 62% to Rs.1224 cr. on the back of NII growth and NPA falling to 5.05%. Add.
*Tata Steel* Q1FY24 NP dropped 93% to Rs.525 cr. on weak prices. Sell and wait for better times.
*Canara Bank* notched FY24 EPS of Rs.20.61 as against Rs.12.02 in Q1FY23. The global business is on the rise and so is the NIM. It notched FY23 EPS of Rs.62.04 and this figure is likely to be surpassed in FY24. Buy.
Most analysts have become bullish on *TVS Motors* on strong Q1FY24 sales. The CMP which is already on all-time high may go up further. Risk-bearing investors may enter, with strict stop loss.
*Tata Motors* is thinking of covert its DVR into ordinary shares. DVRs are ordinary shares with differential rights and it may turn profitable to add these shares as there is a price difference between the two. Add.
*L&T* Q1FY24 NP rose 46% to Rs.2493 cr. on the back of healthy order executions. It has also proposed a buy back to the tune of Rs.10000 cr. A special dividend of Rs.6/sh. has been declared. Add for the long term.
*M&M* is restructuring sourcing units to ensure faster supply as it is struggling to align production with demand. It is on a growth path and must be added.
*Asian Paints* notched Q1FY24 EPS of Rs.16.17 as against Rs.10.60 in Q1FY23 and is indicative that FY24 EPS may surpass the FY23 EPS of Rs.42.83. Add for the long term.
*ACC* Q1 PAT has rose 105% to Rs.466 cr. YoY and sales grew 17%. A clear indication of better times. Add.
*Dr Lal PathLabs* Q1 PAT rose 43% to Rs.83 cr. YoY and revenue grew 7.62% to Rs.541 cr. A big positive. Add.
*Sterlite Tech* Q1FY24 PAT rose to Rs.63 cr. from Rs.22 cr. in Q1FY23. The commencement of 5G services will also augur well for this company. Accumulate.
*Indiabulls Housing* is on a comeback trail and is raising funds to augment its working capital. The book value of its share is very high. Add for the long term.
*Indian Hotels* Q1FY24 profit rose 30.3% to Rs.236 cr. YoY. Citing this as a historical quarter, the management has hinted that better times are coming. Add.
*Ambika Cotton Mills* plans to install a 8.33 MW Solar Power Plant for captive consumption, the cost of the project is around Rs.39 crore which will be funded from internal accruals. Add on dips.
The Govt. of Arunachal Pradesh has allotted five projects totaling 5097 MW to *SJVN* which will involve an investment of Rs.50000+ cr. Buy for the long term.
*Federal Bank* has allocated 23 cr. shares at Rs.131.9/share aggregating Rs.3035 cr) to eligible QIBs. It notched 39% higher Q1 EPS of Rs.4.2, which may lead to FY24 EPS of Rs.19+ as against FY23 EPS of Rs.15. Add for good returns.
Government-owned *BPCL* notched 273% higher Q1 EPS of Rs.50 as against FY23 EPS of Rs.9.1. Add for decent gains.
*IIFL Securities* notched 70% higher Q1 EPS of Rs.2.5, which may lead to FY24 EPS of Rs.11+ as against FY23 EPS of Rs 8.2. Buy for 30% gains.
*Canara Bank* notched 72% higher Q1 EPS of Rs.20.6, which may lead to FY24 EPS of Rs.85+ as against FY23 EPS of Rs.62. A reasonable P/E of 7x could take its share price to Rs.600+. Buy.
*Kalyani Steels* notched 159% higher Q1 EPS of Rs.14, which may lead to FY24 EPS of Rs.50 as against FY23 EPS of Rs.38.3. Add.
*Seshasayee Paper* notched 20% higher Q1 EPS of Rs.11.9, which may lead to FY24 EPS of Rs.72+ as against FY23 EPS of Rs.65.7. Add for 30% gains.
*Godfrey Phillips* notched 79% higher Q1 EPS of Rs.48.9, which may lead to FY24 EPS of Rs.180 as against FY23 EPS of Rs.132.8. Buy.
*20 Microns* notched 11% higher Q1 EPS of Rs.4.2, which may lead to FY24 EPS of Rs.18 as against FY23 EPS of Rs.11.9 Buy for 30% gains.
*Sasken Technology* notched 67% higher Q1 EPS of Rs.16.8 and FY23 EPS of Rs.63 in FY23. This could lead to a considerable increase in FY24 EPS. Add.
*Deccan Gold* has finally found gold reserves in it mines and has started processing the same. Further, GPIL and Lloyd Metals have taken a preferential allotment in the company. Buy for hefty gains.
Xiaomi India will source the products from *Optiemus Infracon*, this partnership will give it a global recognition. A big positive. At the CMP of Rs.208, the risk reward seems quite favorable given its 52-Week high of Rs.376. Add.
*Heubach Colorants India* posted some solid results after change in management. It has also guided for continuous growth and margin expansion. Change in promoters and management can do wonders going forward. Buy for multi-bagger returns.
*Sunflag Iron and Steel* stock trades at a mkt-cap of Rs.4000 cr., while it holds stake worth Rs.3500 cr. in Lloyd Metals and Steel alone, resulting in Sunflag being valued at Rs.500 cr. Buy for hefty gains.
*ACC* posted excellent numbers in Q1FY24 by cutting down its operating expenses and increasing margins and has also guided for more improvement going forward. Add.
*Welspun Specialty Solutions* posted Q1FY24 NP of Rs.11.14 cr. as against Q4FY23 NP of Rs.8.06 cr. It is a turnaround story post the takeover by Welspun Group. Add for hefty gains.
*Dhunseri Ventures* posted FY23 NP of Rs.542 cr. as against Rs.360 cr. in FY22 fetching an EPS of Rs.155. It has expansion plans on hand and all its businesses are doing well. Buy for 50% gains.
Consistent performance backed with undervaluation makes *IIFL Finance* an attractive bet. Add.
*Tata Chemicals* is one stock that need not introduction, is a suppressed gem. Time is coming for its discovery. Add.
*Grasim* is heading for better times with its standalone businesses along with value of Ultratech Cement. Add.
*PFC* made its fresh all-time on Friday. For FY23, it has recorded PAT of Rs.15889.33 cr. The book value is its share is Rs.319. Add.
*Hindustan Oil Exploration* posted FY23 NP of Rs.194 cr. as against Rs.20 cr. in FY22. FY24 looks more promising due to big expanded capacity and firm crude oil prices. Keep it on your radar.
*ITD Cementation* FY23 PAT rose 80%. FY24 looks more promising as it has huge order on hand worth Rs.20044 cr. Add.
*TARC* a group company of Anantraj likely to post excellent results in FY24, due to big boom in realty sector. Keep it on your radar
*Texmaco Rail* Q4FY23 PAT rose 222%. It has bagged an order for 20067 wagons worth Rs.6450 cr. and more huge orders are in pipeline. Due to huge order book, 30%+ growth is expected in FY24. Add.
*TAJ GVK Hotels & Resorts* Q4FY23 and FY23 PAT grew 435% and 706%, respectively. Its share trades at a P/E of 18.6x which is cheapest amongst its peers like EIH, Chalet Hotels, Lemon tree etc. Add.
There are rumours that Poonawala Fincrop group or Black stone group may take some stake in *Indiabulls Hsg. Finance.* It can be a big positive if this materializes. Add.
*Sigachi Ind*. will issue 1.1 cr. convertible warrants at a price of Rs.261 to the promoters and certain non-promoter entities. It’s result is on 2 August. Add.
*Gulshan Polyols* has started commercial production in its new 500 KLPD Ethanol plant and has also supplied to Reliance Ind., Nayara Energy, etc. A huge capex re-valued its fixed assets to Rs.800 cr. Due to big expansion and good monsoon, sales and profits likely to jump in FY24-25. Add.
FII’s continuously raising stake in *NCC and Prakash Ind.* Keep both on your radar as both hit new 52-weeks high on Friday.
*Mishra Dhatu Nigam* has open order position of Rs.1622 cr. for Defence. It has played a vital role in the successful launch of the Chandrayaan-3 mission. Add for decent gains.
*Alpine Housing Development* has around 29 acres land under development in six township projects in Bangalore. It is likely to cross its 52-week high very soon. Add.
*ABC India* is a logistics provider available at throwaway valuations, its P/E is just 13x, MCap /sales is 0.3x. Its Q4FY23 EPS was Rs.3.62. Its promoter holds 65% and Adani group also holds stake in the company. Buy for hefty gains.
*Hindustan Tin* is available at very low valuations. Its P/E is just 7x and P/BV is 0.60x. It is also plans to set up an additional plant. It is technically and fundamentally very strong. Add.
*Solitaire Machine Tools* has an exclusive licensee of Cincinnati Milacron of USA and an arrangement with Bocca and Malandrone Sunebo SPA Italy. It is expanding capacities by setting up a new plant at Halol. A big positive. Add for 50% gains.
A market veteran opine that in the bull market all forward going stories get unfold and all Penny stocks looks like GOLD in spite of very poor and negative fundamentals. Be care full and make full due diligence before any purchase. Most of them have already gone up by 300-400% and they are looking for innocent trader/investor to fall for such companies. His watch list for August is *BHEL, HDFC Bank, IRFC, IndusInd bank, Kiran Vyapar, NBCC, Midhani, SJVN, TARC, Tata Communications, Tata Power.*
*Indiabulls Housing Finance* has approved raising of Rs.35000 cr. by issuing NCDs. It is highly undervalued and trades at P/BV of 0.37x. Recently some big names have acquired its shares. Add.
*Univastu* India has good fundamentals and trades at a P/E of 17x. It has acquired Opal Luxury Time Products Ltd. through NCLT for Rs.1.56 cr. A big positive. Add.
*Baid Finserv* plans expansion in Gujarat and Maharashtra. It is also planning to leverage the credit gap in underserved markets. Accumulate.
*TruCap Finance* opens 31 new branches in Q1FY24 taking its total branch count to 103. It focuses more on loan against gold. Accumulate.
*Servotech Power Systems* incorporated a wholly-owned subsidiary for manufacturing and trading of batteries. Its Q1FY24 revenue and EBITDA rose 148.9% and 415.3%, respectively. Accumulate.
*Shree Ram Proteins* rights entitlements (RE) trade on NSE at Rs.0.15. and the rights issue price is Rs.2.30, making the total cost of owning 1 share at Rs.2.45 as against the mkt. price of Rs.2.80. Accumulate RE.