Money Times Talk
09 January 9, 2022

• *Tech Mahindra* to acquire Seattle based Allyis Green Investment for $ 125mn, which will enable it to bolster its digital experience solutions. Add.

• *Reliance Industries* arm Reliance New Energy is buying UK based sodium-ion battery firm Faradion Ltd, for 100 mn pounds as its technology has significant advantages over lithium-ion and lead-acid batteries. This big business opportunity merits a buy.

• *Gravita India* to raise its authorized capital and funds by way of preferential allotment/QIP to finance expansion plans. This battery recycling company has a great future. Add at every decline.

• A veteran market man recommends *Available Finance, Dynamic Cables, Deepak Spinners, D B Realty, Kalyani Steels, KIC Metalics, KM Sugar, Motilal Oswal Financiasl, Revath Equipments, Rishiroop, Orissa Minerals, Rain Industries., Sunteck Realty, SNL Bearings, Uttam Sugar and Veljan Denison*.

• *Reliance Industries* is now the promoter of Sterling & Wilson Renewal Energy after acquiring 26% shares from the Shapoorji Pallonji Group. After the proposed open offer, RIL will hold around 40% stake in it.

• *NCC* has received 5 new orders worth Rs. 1898 cr. orders from state government agencies. Start accumulating.

• *Hindustan Zinc* posted 11% jump in integrated metal output of 261,000 MT in Q3FY22. Unit metal prices have also risen and will lead to much higher profitability. Buy.

• Rise in sugar prices by 17% to boost both revenue and profitability. Buy *Rana Sugar and Balrampur Chini*.

• Cement is poised for demand recovery in the near term. Add *Deccan Cement* which has a high-efficiency ratio and has seen a steep price correction. Buy now for quick money.

• The *Maruti Suzuki* stock has been range-bound for six months. But its new launches, revised prices and easing cost pressure should give a fillip to it. Investors may start adding.

• *Vedanta* has raised Rs. 1000 cr. from IDBI Bank and Canara Bank for general corporate purposes. It plans to spin off its aluminum, steel, and oil & gas business into separate entities. This will result in value unlocking. Add.

• *Monte Carlo Fashions* recorded its highest-ever sale of Rs. 665.95 cr. on the back of bone-chilling winter, revenge shopping, and festive and wedding season sales. Add in small lots.

• *Ircon International* has emerged as the L-1 bidder for the Rs.861 cr. upgradation and 4-laning of the Haridwar Bypass at Uttarakhand. Add.

• *Bank of Maharashtra*’s gross advances for Q3 grew over 23% to Rs. 1, 29,052 cr. A good opportunity to add at these low prices.

• Production cuts in China, rising profitability and a sharp correction in steel stocks prices make *NMDC, SAIL and JSW Steel* attractive buys.

• Growing consumerism and rising economic activity is boosting the topline of logistic companies like *TCI Express, Blue Dart, Mahindra Logiscis, Gati* and Add these stocks.

• *Bajaj Auto* expects its electric vehicles to account for around 15-20% of the 2-wheeler market in the next about 5 years. A very good long-term investment. Buy.

• *Dr Reddy’s Labs* to launch its Covid-19 antiviral molnupiravir capsules around Rs. 1400 for full treatment. This big business opportunity makes this pharma stock a compelling buy.

• Sales of FMGC products grew 11% in December 21. This means that packaging material makers like *Polyplex and Cosmo Films* have also performed better. Buy them.

• *Vardhaman Textile* board to split stock on its 22nd Jan meeting. The rising liquidity may boost its stock price. The working of the company is also good. Add.

• *AU Small Finance Bank*’s surging Q3 deposit of Rs. 44,278 cr. v/s Rs. 29,708 cr. in Q3FY21 and disbursements too continue to grow. Add.

• *L&T* has Rs.2500-5000 cr. worth orders for Water and Effluent treatment plants. A good long term haul. Add.

• *Samkrg Pistons & Rings*, which notched 13% higher Q2 EPS of Rs 7.1 and 100% higher H1 EPS of Rs 6, is likely to post FY22 EPS of Rs 20. The share may cross the Rs 200 mark. Buy.
• *LG Balakrishnan & Bros*., the No. 1 supplier of 2-wheeler Drive Chains and the largest exporter to USA, has posted 178% higher Q2 EPS of Rs 24.8 and 411% higher H1 EPS of Rs 35.3, which may take the FY22 EPS to Rs 65+. Buy for 30% gain.

*Shree Ajit Pulp & Paper Mills* has earned 33% higher Q2 EPS of Rs 11 and 211% higher H1 EPS of Rs 27.4, which may take FY22 EPS to Rs 63+ from Rs 46 in FY21. A reasonable P/E of 10x can take its share price to Rs 630. Buy.

• Cash-rich*Kalyani Steels* manufactures components for commercial vehicles, two-wheelers, diesel engines, bearings, tractors, turbines, defence and railways, is undertaking capex and notched 37% higher Q2 EPS of Rs 14.2 and 144% higher H1 EPS of Rs 30.2, which may take FY22 EPS to Rs 65+. The share is poised to touch the Rs 650 mark.

• *DCM Nouvelle*, which commenced yarn spinning in 1991 at Hisar has notched over 10500% higher Q2 EPS of Rs 22.2 and H1 EPS of Rs 37.8, which could take FY22 EPS to Rs 75+. It may be debt free by end FY22 and the share may double. Buy.

• *Khaitan Chemicals*, manufacturer of SSP fertilizer, Sulphuric Acid, edible Soya Oil etc. posted 164% higher Q2 EPS of Rs 2.9 and 163% higher H1 EPS of Rs 5, which may lead to FY22 EPS of Rs 11. The share trading at a forward P\E of 5x could double from the current level. Buy.

• *Bharat Gears* manufactures a wide range of Ring Gears and Pinions, Transmission Gears and Shafts, Differential Gears, Gear Boxes for the automotive industry has notched Q2 EPS of Rs 8.5 v/s (-) Rs 2.2 and H1 EPS of Rs 15.4 v/s (-) Rs 16.4, which could lead to FY22 EPS of Rs 28. The share may gain 30%. Buy.

• *Shiva Global Agro Industries*, an emerging leader in the agro products domain, manufactures fertilizers, soil and crop health products, oil, de-oiled cakes, etc. has notched 192% higher Q2 EPS of Rs 3.5 and 134% higher H1 EPS of Rs 8.2, which could take FY22 EPS to Rs 17. A reasonable P\E of 7.5x could take its share price to Rs 127.50. Buy.

• Debt-free *Savita Oil Technologies* is a pioneer in petroleum specialty products marketed in over 75 countries worldwide. It posted 51% higher Q2 EPS of Rs 40.4 and 181% higher H1 EPS of Rs 96.3, which could take FY22 EPS to Rs 235 from Rs 159 in FY21. Buy this prospective bonus candidate for 50% gain.

• *GNFC* manufactures fertilizers (32%) and chemicals (68%). It posted 1000% higher Q2 EPS of Rs 15.6, which could lead to FY22 EPS of Rs 60 as against Rs 44.9 in FY21. The share has the potential to touch the Rs 550 mark. Buy.

* *OIL India*, the second-largest oil exploration and production PSU has notched 29% higher Q2 EPS of Rs 10.6 and 86% higher H1 EPS of Rs 20.3, which may take FY22 EPS to Rs 45+ against FY21 EPS of Rs 37.5.. Buy for 30% gain.

• *Rajapalayam Mills*, a Ramco Cement group textile major holding 14% stake in the Ramco Cements valued at Rs 3,397 cr., 9.7% in Ramco Industries worth Rs 222 cr. and 2.4% in Ramco Systems valued at 34 cr., has garnered 146% higher Q2 EPS of Rs 113 and 198% higher H1 EPS of Rs 155, which could take FY22 EPS to Rs 260+. A reasonable P/E of8x could take its share price to Rs 2080. Add.

* *IFB Agro Industries* manufactures singe grain pure Indian Made Indian Liquor, Extra Neutral Alcohol and bottles alcoholic beverages. It notched 27% higher Q2 EPS of Rs 22.6 and 150% higher H1 EPS of Rs 39.9, which could take FY22 EPS to Rs 80+. The share could fetch a gain of 40%. Buy.

• A hidden gem in the EV space is *Precision Camshafts*. The co. has retrofitted 600 vehicles, which have driven over 100 million miles and is testing state govt. buses in Maharastra. Retrofitting electric vehicle kit on an ICE engine presents a huge opportunity. A sureshot multi-bagger.

• *Jain Irrigation* is reportedly close to attract an investment of Rs.2500cr from global players for its PVC Pipes division. Its mktcap stands is close to Rs 2200 cr. Buy for a quick 50 % return.

• Microcap stock, *Sundaram Multipap* has expanded into online education with educational content that caters to the online digital industry. It already has reputed clients in its fold. A potential multi-bagger if things turn out right for this stock.

• *Jubilant Industries*, manufacturer of JivanJor adhesive, has doubled from the recommended levels of 350-400 to Rs.800. Last week the stock corrected from highs of Rs.800+ to Rs.690 odd levels and provides good entry point for the medium to long term investors.

• IT sector is the most consistent going forward. Stocks to focus on are *TCS, Infosys and HCL*.

• *Vardhaman Textile* in the booming textile sector stands out for its super management, strong balance sheet and great pedigree. Top choice in textile sector.

• *Gokaldas Exports* is another scrip through which the strength of the textile industry can be harnessed.

• *Riba Textiles* is an export oriented Terry Towels and Tufted Mugs manufacturer and exports them to 30 countries. An international brand trading at 8 times to earnings and its recent capacity expansion will further boost sales and profits in FY23. Buy for 50% returns within 1 year.

• *Ambica Agarbatti Aroma & Industries* is leading manufacturer of agarbattis in withover Rs. 100 crore in yearly sales. It also has Two 4 star hotel properties in Chennai and Vizaq and has recently entered into Camphor products and Pooja oil. Buy it for 50% returns within 1 year.

• *Power Finance Corporation* trades at extremely low valuation of PE of just 2x and
8% dividend yield of FY23E earning. This Maharatna improved its Net NPA to 1.9% in H1FY22 from 2.1% in FY21. *PFC* holds 52% stake in *REC* too. Buy it for 50% returns within 1 year.

• In the Sugar sector, *KCP Sugar & Industries Corporation* may deliver surprising returns. Buy & hold for medium term for impressive returns.

• Defence stock, *Apollo Micro Systems*, which retracted to the current level from its recent high of Rs 190.85 offers excellent returns for the medium term investors. Buy and hold.

• *Scandent Imaging*, pioneer in independent imaging solutions of dental and ENT issues and runs a chain of hospitals and is poised for a major expansion. Add.

• *Satia Industries*, a fully integrated maker of writing & printing paper from wood & agro waste, has completed its expansion project with a new paper machine before schedule, which will boost profitability. Buy.

• NSE listed *Airan Ltd*.has signed a service agreement with Standard Chartered Bank for outsourcing its transaction processing in 34 countries beginning with India from December 2021. A good investment idea.

• *Global Textiles* has launched new stretchable, eco-friendly and sustainable apparel for middle-aged customers`

• *Akar Auto* posted H1 net profit of Rs.2.70 cr. v/s loss of Rs.3.81 cr. in H1FY21. Ashok Leyland, Bajaj Auto, BHEL, Force Motors, Greaves, Kirloskar, Mahindra, Piaggio, Tata Motor etc. are its clients. It also export to Australia, Europe, Japan & USA and other countries. Promoters hold 73.06%. Stock looks attractive.

• *Rattanindia Power* is attracting investors. It can reward those who believe in high risk – high profit. Risk takers can pursue.

• *ANG Lifesciences India* posted 2108% higher H1 net profit of Rs.33.78 cr. on its small equity of Rs.10.37 cr. It owns & operates 7 manufacturing facilities and has a product portfolio of 100+ products. The company is confident of achieving revenue of Rs.400 Cr. for FY22. Its 52 week high was Rs.800. Looks very attractive at CMP of Rs.481.

• *HFCL* reported H1 net profit of Rs.169.44 cr. v/s Rs.72.10 cr. for H1FY21. The 5G auctions are likely in May 22 wherein HFCL will be a big participant. Recently, it received an export order of 4 million euros from Europe. Keep accumulating.

• *Rana Sugars* posted 757% higher H1 operating profit of Rs.88.03 cr. v/s Rs.10.27 cr. in H1FY21. Currently, stock trades at PE of only 3x. It is the most diversified cattle feed, ethanol, liquor, power & sugar facility and market leader in Punjab in medium liquor sector. It is also the cheapest sugar stock on the bourses.

• With a network of 41 branches & 755 franchisees, *Aditya Birla Money* will fare well in the booming stock markets. It can attract investors & traders because of a breakout with big volumes on Friday. Its Q3 results on 13 Jan are expected to be good due to the boom in the primary and secondary markets.