MONEY TIMES TALK
OCTOBER 24, 2021
❇️ Indian Energy Exchange has announced 2:1 bonus. Its share price may rise further on expectations of better working. Add.
❇️ HFCL is included in the 31 companies for the PLI scheme, which entails an investment of Rs. 3345 cr. over the next five years. Money Times once again recommends this scrip for big long-term gains.
❇️ Now that PNB Housing has junked its Rs 4000 cr. QIP issue to private equity fund Carlyle, it now proposes to tap alternate sources of funds. Business is brisk and a rights issue is a distinct possibility. Start adding.
❇️ It is always good to strike a balance between attack and defence. Markets are up and going strong. In such times, it would be prudent to shift some money to defensive stocks such as REC, NMDC, Polyplex and Indiabulls Housing.
❇️ A veteran marketman recommends to buy Artefact Projecs, Easy Trip Planners, GNFC, Gujarat Alkalies & Chemicals, Ganesh Benzoplast, Indian Toners Developers, Lahoti Overseas, Nath Industries, Punjab Alkalies & Chemicals, Rubfila International, Steel Strips Infrastructures & Timex Group India
❇️ Triveni Engg., one of the largest sugar manufacturers and a leader in high speed gearboxes and water treatment solutions, is likely to post good numbers over the next few quarters. Buy.
❇️ HUL posted good Q2 numbers with 9% rise in standalone net profit of Rs 2,187 cr. on the back of 11% higher revenue of Rs. 12516 cr. and declared an interim dividend of Rs. 15. Add this evergreen FMCG share with a long term perspective.
❇️ CONCOR posted 37% rise in Q2 PAT of Rs. 253.72 cr. and declared an interim dividend of Rs. 4. Add this logistics stock for appreciation in share price within two years.
❇️Ultratech’s working signals higher profitability. Add.
❇️The CEO of HCL Tech, Mr. C Vijaykumar, recently informed media of new deals that could result in strong Q3 earnings. Buy.
❇️ Sunteck Reality has acquired 110 acre river front parcel of land at Pen-Khopoli with development potential of about 5mn sq ft and a revenue of Rs 2500 cr. over 7 yrs. A good long term investment bet.
❇️ Avenue Supermarkets (D’mart) posted good Q2 results which compared to Q2FY21. However its share price seems to have run up much ahead of its intrinsic worth. A good time to exit.
❇️ CG Power, a global leader in management and application of electrical energy, posted 72% higher Q2 NP of Rs. 188 cr. on 119% higher revenue of Rs. 1454 cr. The share may be added in small quantities.
❇️ Big Bull, Rakesh Jhunjhunwala, has bought 1 crore shares of Tata Motors DVR and upped his stake to 3.93%. This morale booster may push up prices further. Add.
❇️ UPL has announced that its subsidiary, UPL Global, has acquired 80% stake in PT Excel Meg (Indonesia), which is engaged in wide range agrochemicals and fertilizers. At CMP, this looks a good share to add.
❇️ Asian Paints’ Q2 profit tumbled 28.2% in spite of 33% rise in revenue. Sell now and let prices cool before re-entering. Media reports hint of some manipulation at the top level. Stay alert.
❇️ L&T Finance’s Q2 profit fell 10.2% on drop in interest income due to shrinkage in the loan book. A deep correction may be an opportunity to add. Wait till the share price cools.
❇️ SVP Global, a small yarn manufacturer trading in textiles and jewelry also, posted encouraging Q2 results with NP of Rs 40.85 cr. and EPS of Rs. 3.32. Around Rs. 112, this share is an attractive buy for investors with an appetite for risk.
❇️ P&G plans to pump Rs. 500 cr. in rural markets to boost growth. This evergreen share must be added.
❇️ Tata BSL is at rock bottom prices around Rs. 76. Its half-yearly EPS was Rs. 10+ and it could emerge nearly debt-free in about a year. This is a sure shot long term winner. Add.
❇️ Rain Industries, largest producer of calcined petroleum coke, is also into cement, tar distillation and specialty chemicals in 8 countries. Its upgraded Cement Grinding Mill’s expanded capacity is 2.8 MMTPA. With 90% higher Q2CY21 EPS of Rs 7 and H1CY21 EPS of Rs 13.1, it may end CY21 with an EPS of Rs 30. The share could touch the Rs 300 mark.
❇️ Cash rich Dhunseri Ventures has notched Q1 consolidated EPS of Rs 27.7, which may lead to FY22 EPS of Rs 100 against FY21 consolidated EPS of Rs 66.3 on its equity of Rs 35 cr. The share has the potential to double from the current level. DVL is setting up a 45,000 TPA polyester packaging plant. Buy.
❇️ Shree Ajit Pulp & Paper Mills, leading recycled Kraft Paper manufacturer, will buy the writing & printing paper assets of NR Agarwal Industries for Rs 99 cr. It posted 1269% higher Q1 EPS of Rs 17.8, which could take FY22 EPS to Rs 65 against FY21 EPS of Rs 46. A reasonable P/E of 10x could take its share price to Rs 600. Buy.
❇️ Mangalam Cement, a BK Birla co. with 5 MMTPA capacity and 17.5 MW power plant and 13.65 MW of wind power has notched 190% higher Q1 EPS of Rs 14.9, which could take FY22 EPS to Rs 60 as against FY21 EPS of Rs 40.8. Buy for 30% gain.
❇️ Mazagon Dock Shipbuilders, leading public sector undertaking engaged in constructing and repairing warships and submarines and other commercial vessels notched 27% higher FY21 EPS of Rs 30.2 may post FY22 EPS of Rs 35-36. The share available at a forward P/E of 7.6x could touch Rs 400 in the medium term. Accumulate.
❇️ Gujarat Craft Industries, manufacturer of PP/ HDPE coated woven products earning 80% from exports has notched 31% higher Q1 EPS of Rs 4.7, which may lead to FY22 EPS of Rs 15 against FY21 EPS of Rs 7.2. The share may cross the Rs 100 mark. Buy.
❇️ MK Exim (India) with expansion projects in manufacturing fabrics, readymade garments and jewellery has notched 257% higher Q1 EPS of Rs 2.7, which may lead to FY22 EPS of Rs 14 against FY21 EPS of Rs 10.6. The share may cross the Rs 100 mark.
❇️ Jammu & Kashmir Bank posted 1000% higher Q1 EPS of Rs 1.4. The bank is expected to garner an EPS of Rs 8 in FY22 against FY21 EPS of Rs 6. The share is expected to fetch a gain of 50%. Buy.
❇️ Savita Oil Technologies, pioneer in petroleum specialty products, is now a well-diversified co. marketing its products in over 75 countries that posted 631% higher Q1 EPS of Rs 55.6, which would take FY22 EPS to Rs 230 against Rs 159 in FY21. The share, which made a lifetime high of Rs 1822 on 9 Aug 2012, is expected to fetch a decent gain of 40%. Buy.
❇️ Shilp Gravures, the leader in Electro-Mechanical Engraving, has garnered 1433% higher Q1 EPS of Rs 4.6, which may lead to FY22 EPS of Rs 20 against FY21 EPS of Rs 16.7. This share, which made a lifetime of Rs 180 on 11 Oct 2017, is expected to advance by 40%. Buy.
❇️ Cash rich Manaksia Ltd. produces sponge iron and value-added steel products, pilfer proof closures for liquor, toiletries and medicine bottles, aluminum rolled products for fabrication and general engineering purpose has notched 155% higher Q1 EPS of Rs 4.7, which could take FY22 EPS to Rs 15 against FY21 EPS of Rs 8.2. The share may appreciate by 50% going forward. Buy.
❇️ Tata Teleservices Maharashtra has strengthened its portfolio of enterprise grade solutions and partnered with Zoom Video Communications to offer world-class unified communication solutions to enterprises. Last week, it launched a smart internet leased line. Tata Sons holds 75% stake in the co. and going by its recent initiatives, it seems it has big plans for this co. Buy for multi-bagger returns.
❇️ Hikal has signed a 10-year deal with a multinational pharma co. a few months back and then the stock price zoomed from Rs 350 levels to Rs 700+. After last week’s carnage in the mid-caps, it has corrected and offers an opportunity to both short term and long term investors to enter @ Rs.500. Buy for decent gains.
❇️ With the growing retail investor viewership of business channels like CNBC and CNBC Awaaz, TV18, which owns both these channels and many more is a great buy. It recorded the most profitable year in FY21 and also came up with an exceptionally good Q2. Buy for the long term for double the share price.
❇️ As the Modi government promotes ‘Make In India’ and Indian goods imposing ant-dumping duty on all foreign goods, Mirc Electronics, owner of the Onida brand, can be a good takeover candidate. The stock has corrected nearly 20% from its recent highs and provides a good entry opportunity
❇️ IRB Infrastructure engaged in construction work in accordance with EPC contracts provides operation and maintenance services and undertakes trading activities. Stock is available at a market cap of just Rs10,319 cr. against economic value (EV) of Rs. 26585 cr. Promoters hold 58.46% stake in the company. Invest in this counter for a target price of Rs 400.
❇️ Private sector banks are recording improved Q2. Karnataka Bank’s board meet of 28th Oct. is likely to record net profit of around Rs 125 cr. with quarterly EPS above Rs 4 on its present book value of Rs 214. The stock gives high valuation comfort at the current level below Rs 70. Its re-rating in the coming days can be a big surprise.
❇️ With a reducing interest burden, Reliance Power may record net profit of above Rs 100 crore in the 2nd quarter. With the worst behind it, the stock will fetch better support in view of its improved prospects and its much higher book value of Rs 40.63.
❇️ Among the defence segment stocks, Apollo Micro Systems offers the best valuation comfort and deserves better support in the coming days.
❇️ Ginni Filaments, manufacturer of cotton yarn and knitted fabrics, is a market leader in non-woven fabrics, garment exports, wipes and filter segments, posted FY21 EPS of Rs 6 and FY22E EPS of Rs 7 is trading at an attractive PE of 4x. Buy it for 50% returns in 1 year.
❇️ All power sector are doing well since 6 months. But PFC, which won the ‘Maharatna’ status recently, still trades at less than 3 PE and 0.5x to book value. It is a re-rating candidate and a value buy for 50% returns in 1 year.
❇️ RFC is the most undervalued NBFC with zero NPAs and deserves attention.
❇️ Swaraj Engines does not command the valuation it deserves. It is a dominant supplier of tractor engines with no marketing or receivables issue as M&M is its biggest buyer.
❇️ It’s the time for capital goods now. Thermax Ltd. is the company to watch.
❇️ Aro Granite posted 790% jump in Q1 PAT. Due to rising demand, it plans to expand capacity as sales rise from 40 containers to 60-70 containers per month. Technically, if it crosses its 52 week high of Rs 79, it can go up to Rs 100+.Its Q2 results will be declared on 29th October.
❇️ CG-VAK-Software & Exports has purchased land worth Rs15 cr. for expansion. Its services of E-commerce, Healthcare, Education, Cross platform solutions, cloud computing, software testing, big data & digital marketing will boost its business many fold. Such a vast business is available at a PE of just 13x. Technically, if it crosses its 52 week high of Rs 222, it can rise to Rs 250+.
❇️ Vipul Organics is a specialty chemical player that serves textiles, paints, printing inks, cosmetics, food, plastics etc. Promoters have raised their stake by about 10% in last 2 years as company expanded many fold in the last 18 months. Buy for multi-bagger returns. Technically, if it crosses its 52 weeks high of Rs 229, it can touch Rs 250+.
❇️ Dividend paying KPT Industries is a niche player in the power tools industry. It recently introduced E-cart ‘Pushpak’ for carrying & dumping garbage. Its low equity of Rs.1.70 cr. is backed by huge reserve of Rs.29.43 cr. but stock is available at PE of just 8x. A potential multi-bagger. Technically, if it crosses its 52 weeks high of Rs 177 with volumes, it can rise to Rs 200+.
❇️ Timex Group India is a part of Timex group, which has multiple operating units worldwide. Recently, renowned fund Baupost bought the controlling stake in Timex USA. With very good margins, Timex listed only on BSE, is a multi-bagger in the wearable segment. Timex is a mini Titan in the making. Its Q2 result is due on 27th October.
❇️ As per an astrological forecast, 25th October to 16th November will witness stock specific activity with wild volatility. So till 16 November trade/invest with a strict stop loss or avoid.
❇️ Steel City Securities from the booming broking & E-Governance field listed on the NSE is available of PE of just 10x. Promoters have raised their stake by 6%. The booming stock markets augur well for its future and it is a potential multi bagger. Technically, if it crosses its 52 week high of Rs 99, it can touch Rs 125+. RDD