TOWERTALK
JULY 11, 2020
Bodal Chemicals is likely to benefit by the attempt to curb Chinese imports of dyes and pigments. Add.
India defers the decision to cancel Reliance Naval’s Rs. 2,500 cr warship deal, which will help revive the company. Reliance Infrastructure will be a big beneficiary. Add.
Adani Transmission has signed to buy Kalpataru Power’s transmission project for Rs. 1286 crore. Add.
Progressive normalization of operations across segments, especially in the cigarette business, quick recovery in FMCG sales and rising in-home consumption of its products will lead to a quicker recovery in earnings for ITC. A good time to accumulate.
An Ahmedabad-based analyst recommends Anjani Portland Cement, IOL Chemicals & Pharmaceuticals, Pioneer Embroideries, Navkar Corporation and Prima Plastic.
Specialty chemicals major, Kanchi Karpooram, will benefit immensely from the anti-China syndrome. Its working is also good. A strong Buy.
Interglobe Aviation, owner of Indigo Airlines has been downgraded by Crisil as it failed to honour its debt commitments. Practically all Airlines are in a financial crisis. Exit Interglobe.
Cipla has launched its generic version of broad-spectrum anti-viral drug Remdesivir (branded Cipremi), to treat the severe infection of COVID-19. A big positive. Add.
ABB Power has won a Rs. 120 crore order from the Indian Railways. A positive for the company. Accumulate.
The board of Can Fin Homes will soon consider raising funds by issue of equity shares via various routes. Its Q4 results were good and are expected to remain so in the coming quarters too. Add.
The drop in crude oil prices has badly mauled the stock of Selan Exploration. Buy this share as a value pick.
The Covid-19 pandemic shaved off around 21% profits of TCS dollar terms. But the share remains a good buy. Retain.
PNB has declared Rs.3688 crore loaned to DHFL as bad. But going forward, the share may be accumulated as a recovery in its working is not far off. The bank is also set to raise around Rs.10,000 crore via sale of shares and bonds. Buy.
Kiri Industries should gain on the back of its excellent working and the stringent resistance to import of Chinese dyes and chemicals. Start adding at current rates.
Titan has reopened 83% of all its stores across the country. Revenues are slated to rise. Add.
The finance sector is on a rebound. L&T Finance is yet to react to this positive gesture. Accumulate.
Auto shares show signs of recovering. Buy Maruti, the king of the road, in small lots.
The worst times for Indiabulls Housing have been discounted in its current price. In spite of a big amount kept aside as provisions, the prices have not slipped. It may be prudent to add in small quanties.
M&M is reporting pick up in its tractor segment. The rural economy favors this Company. Add.
Larsen & Toubro, India’s largest EPC company with strong presence across various verticals including infra, hydrocarbon and services will be a major beneficiary of an economic rebound. Its share price looks attractive. Buy.
HUDCO posted FY20 EPS of Rs 8.5 on 45% higher net profit. Its Net NPA of 0.19% is among the lowest in the sector while its capital adequacy ratio (CAR) is a robust 56.9%. It’s focused on Housing & Urban Infrastructure projects including Pradhan Mantri Awaas Yojana (PMAY), Expressways, Water Supply projects, etc. Accumulate.
IT company, Expleo Solutions Ltd. (ESL), a subsidiary of Expleo Technology, Germany,(formerly known as SQS Software Quality Systems AG) has posted FY20 EPS of Rs 38.5. With over 150 customers in APAC, USA, UK and the Middle East, the share is poised to advance by over 30% in the medium-to-short term. Buy.
Srikalahasti Pipes (SPL) posted 59% higher NP in FY20 notching an EPS of Rs 40 in FY20. Its backward integrated ferro silicon project and DI Pipes project of 5-lakh TPA will be completed this fiscal and it will be a major beneficiary of Govt infrastructure spends and upcoming water supply projects of Rs, 12, 503 cr. in Andhra Pradesh. Buy for 30% gain.
L &T Technologies (LTTs) a has notched an EPS of Rs 78.3 on its tiny equity of Rs.20.9 crore. Buy for 30% gain going forward.
Globally renowned Va Tech Wabag is a systems specialist and full-service provider of drinking and wastewater plants. Its Rs. 11,600-crore order book will drive its revenue going forward. Its share price could appreciate by over 30% in the medium term.
Cupid Ltd, the largest maker and exporter (91% of revenue) of condoms has notched 162% higher net profit in FY20 with an EPS of Rs. 29.9. Given its healthy order book, we anticipate a better performance in FY21. Buy.
Vindhya Telelinks Ltd. (VTL), which is into cables and EPC business has notched a consolidated EPS of Rs 200 in FY20 on a small equity of Rs 11.8 crore. It has a sizable stake in Birla Corporation and Universal Cables. The share is trading at a forward P/E of just 3.5. Accumulate for hefty gains.
Birlasoft Ltd., part of the multibillion-dollar diversified CK Birla Group, is partnering with Innoveo, the Zurich-based global technology major, strengthening its domain and digital capabilities to rapidly deliver world class solutions with Innoveo’s enterprise-level no-code platform. This is a big positive. Accumulate.
KG Petrochem, engaged in the manufacture and marketing of terry towels, made-ups and garments in India and overseas has notced an EPS of Rs.33.5 in FY20 on its small equity of Rs. 5.8 cr. Buy this share for hefty 100% return.