*Money Times Talk 26 November 22*
*Tata Consumer* is set to acquire banded water company Bisleri for about Rs. 7000 cr. A big positive for the Company. Add.
The removal of export duty on Iron ore and steel products will boost the steel industry, which is reeling under a heavy burden. Buy *Tata Steel, GPIL and NMDC* for one year.
*ABFRL* to bring luxury brand Galeries Lafayette to India by 2024. This is a good long-term haul in this margin business. Add.
In the booming Textile Apparel space, ongoing consolidation in *SPL Industries* seems to be over. Analysts project a short-term target of Rs 110, medium-term target of Rs 160 and long-term target of Rs 220+. Hold and Add.
PSU Banks are riding the credit wave. Buy *Canara Bank, Bank of India and Union Bank* for quick gains as they are expected to post strong numbers in the next few quarters.
Money Times had advised against investing in the IPO of INOX Green Energy. Since the share has listed in the red, switch to *Orient Green Power,* which has now turned profitable.
Liquor major *SDBL (Som Distilleries & Breweries)* is reportedly having a hay day on rising sales and profitability. Buy for one year for bumper gains.
Indian Air Force plans to buy 114 fighter planes. *HAL* will bag the maintenance orders that will follow over and above its huge order book position. The stock is a potential multi-bagger.
LIC has bought 1,95,81,049 shares or 2.011% equity of Tech Mahindra from the open market, which indicates its excellent working. Add *Tech Mahindra*.
*DCW* plans to double its CPVC capacity by adding another 10KTs capacity, the demand for which is unstoppable. Add.
The hosiery industry is faring well and companies in this sector are flush with rising local and global demand. *VIP Clothing and Filatex Fashions* must be added with a long-term perspective.
*MBL Infra,* an engineering, procurement and construction (EPC) services company, has won an arbitration award of about Rs. 10 cr. against the PWD for its residential project in Delhi. Add this small-cap infra company.
Consumer goods companies expect demand to pick up as winter stocking gains pace. Add *Marico and Dabur.*
Big govt orders are paving the way for construction companies to rebound.
Add *Dilip Buildcon and Ashok Buildcon*.
*Tilaknagar Industries* is reportedly the largest manufacturer & exporter of brandy from India. This will definitely reflect in its financials. A good buy at current prices.
Home loans provider, *Can Fin Homes*, to announce an interim dividend. Its current working is also good. Add.
Defence major, *DCX Systems*, is substantially lower than its listing price, which is an opportunity to buy it now. Its CEO had hinted of some upcoming major orders to the media. Buy.
*Ugar Sugar* may become the first company to earn foreign exchange by exporting ethanol. It is also enhancing its capacity 5 times in the next one year. A screaming buy!
*Deepak Fertilizers* to supply Nitric Acid to Aarti Industries for 20 years, which is valued over Rs. 8000 cr. Add.
*PNB* has received the nod of DIPAM to sell its 15.22% stake in UTI AMC in order to realize gains on its investment. The share price may spurt again. Buy.
*Indiabulls Housing* gave a surprise jump in share price and volumes, which signals some good news. After takeover by stronger promoters, it is reportedly faring much better. Buy.
*Rushil Décor* has lined further expansion of laminates for Rs. 60 cr. It notched 244% higher EPS of Rs 13.4 and H1 EPS of Rs 27.1 and is likely to post FY23 EPS of Rs 60 +.
*SPIC (Southern Petrochemicals),* a $2 billion Muthiah group fertilizer conglomerate posted 85% higher Q2 EPS of Rs 5.7 and 88% higher H1 EPS of Rs 9.2 as against Rs 8.8 in FY22. This indicates that FY23 EPS could be Rs 19+. Buy for 30% gain.
*GSFC (Gujarat StateFertilizers)* has notched 24% higher Q2 EPS of Rs 7.2 (FV Rs 2) and 72% higher H1 EPS of Rs 15.8, which may result in FY23 EPS of Rs 30 as against Rs 22.6 in FY22. Buy for steady appreciation.
Cash rich *Seshasayee Paper* has garnered 285% higher Q2 EPS of Rs 17.7 and H1 EPS of Rs 27.7 as against FY22 EPS of Rs 18.3. This could take the FY23 EPS to about Rs 60. Buy for 30% gain.
*Karnataka Bank* has notched 230% higher Q2 EPS of Rs 13.2 and 128% higher H1 EPS of Rs 16.9, which indicates that FY23 EPS may be Rs 35+. Buy for a target of over Rs 180.
*Jammu & Kashmir* Bankposted 124% higher Q2 EPS of Rs 2.5 and H1 EPS of Rs 4.2, which indicates that FY23 EPS could be Rs 10 against FY22 EPS of Rs 6. The share may fetch a gain of 40%. Buy.
*Voith Paper Fabrics* (formerly Porrits & Spencer), a German MNC with 74% equity stake has posted 22% higher Q2 EPS of Rs 17.4 and 5% higher H1 EPS of Rs 34, which may lead to FY23 EPS of Rs 72. Buy for 25% gain.
*Canara Bank* has clocked a 94% higher Q2 EPS of Rs 14.9 and 77% higher H1 EPS of Rs 26.9 as against FY22 EPS of Rs 32.5. A likely FY23 EPS of Rs 55 may fetch a cool gain of 30%. Buy.
*Titan Bio* posted 43% higher Q2 EPS of Rs 11 and 9% higher H1 EPS of Rs 20.1, which may take FY23 EPS to Rs 35 as against Rs 30.7 in FY22. Add.
*DCB Bank* posted 112% higher H1 net profit of Rs.209.50 cr. v/s Rs. 98.70 cr. in H1FY22. Its NPAs & provisioning have also drastically reduced and may have more surprises for investors. Buy for good returns in short to medium term.
MNC *Accelya Solutions India* is a leading global provider of technology platforms, software & services to the travel & transport industry. It posted Q2 net profit of Rs.33.11 cr. v/s Rs.25.17 cr. last year. Buy for very good returns in the short to medium term.
*Ind-Swift Lab* posted H1 PAT of Rs.45.22 cr. on its equity of Rs.59.08 cr. leading to an EPS of Rs 7.65 in 6 months. Available at PE of only 4. Keep on your radar.
*RCF* posted 73% higher H1 net profit of Rs.562 cr. v/s Rs.325 cr. in H1FY22. Its board meeting is scheduled on 29th November to consider declaration of Interim dividend. Keep on your radar.
*Anant Raj* posted 171% higher H1 net profit of Rs.57.52 cr. v/s Rs.21.24 cr. in H1FY22. Keep it on your radar.
*Nesco* will continue to post better results going forward as this cash rich co. has undertaken a Rs. 1800 cr. expansion. A multi-bagger in the making.
*Nirlon* is another real estate rental co. that can give steady returns.
*Ruby Mills* at Dadar in Mumbai has a long way to go as income will rise once it rents out the newly constructed areas.
*Hi-Tech Pipes*, leading manufacturer of ERW pipes, has approved issue of convertible equity warrants to the promoters, QIBs and HNIs. Add.
HNI Samip Adani has picked up 60,000 shares in *Dev Information Technology,* which had teamed up with Adani Institute of Digital Technology Management and Orena Solutions to upskill IT students. Buy.
*Compuage Infocom* declared encouraging results and is on an expansion spree financed by its Rights issue. It plans a major expansion in a new technology area. Keep it on your radar.
*Birlasoft Ltd* – a mid-cap, debt-free IT company of the CK Birla group, has hired a Wipro veteran as the next CEO. Stock may give 10% to 20% in the short term on news of senior level hires, big tie-ups or collaboration with global giants for future assignments
*Sree Rayalaseema Hi-Strength Hypo Ltd.,* manufacturer of industrial chemicals, posted excellent H1 results with an EPS of Rs. 34.71 vs Rs 22.64 in H1FY22 and 60% higher topline. Buy for a quick 30% return.
*NXT Digital,* a listed company of the Hinduja group, has completed corporate re-structuring and absorbed the unlisted Hinduja Leyland Finance (HLF) with itself. Given the net worth, leadership and AUM base of HLF, the current market cap is peanut and a renowned NBFC is getting listed quietly without much fan-fare. Buy for long term wealth creation.
*Money Times Talk is part of 'Money Times' publication*