*TOWER TALK*
Indiabulls Housing Finance has sold its part stake in UK’s OakNorth for $440 cr to Boston’s High Sage Ventures to boost its capital adequacy. The stock is turning attractive.
Suven Pharma pregnant with 1:1 bonus posted a good Q1FY21. A 10% rise in the next two months is possible.
Steel Strip Wheels has received big US orders worth $114,000. A good buy.
Hindalco maintains that it will soon return to the pre- Covid level of production and profitability.
IRCTC posted a Q1FY21 loss of Rs.1.54/share as against an EPS of Rs. 4.52 in Q1FY20. Since the Covid pandemic continues, the losses may continue for some time. Sell now buy later.
Hester Biosciences, an animal healthcare and poultry vaccine manufacturer, is setting up a plant in Africa with the help of Bill & Melinda Gates Foundation. Buy or the long term.
Vishal Fabrics has bagged large export orders at the recent Vibrant Gujarat Summit. Its on-going expansion will need 1500 workers and its share price may rise 20% in the near future. Add.
Hindustan Zinc engaged in the mining and smelting of zinc, lead and silver, rock phosphate is reportedly faring very well. Its share price can rally by Rs. 50/- in two months. Add.
Royal Enfield has set up a new assembly unit in Argentina. Buy Eicher Motors as there are big opportunities in the heavy motorcycle segment. Add.
Dr. Reddy’s Labs has tied-up with Russia’s Sovereign fund for clinical trials and distribution of the Sputnik Covid vaccine in India. A big business opportunity. Add.
Dhanuka Agritech has fixed 28 Sept. as the record date for eligible shareholders to tender shares in the buy-back offer at Rs. 1000 per share (CMP: Rs. 825). The share may rise. Add.
Noida based Motherson Sumi has plans to diversify in defence, aerospace, healthcare and information technology in the next few years. A good long term buy.
Advanced Enzymes again gathers fancy with higher prices and volumes on the back of better Q1 and merits a buy.
Ramco Systems has had a dream run since the past few days. It now has an order from European dairy company, Arla, for streamlining its multi-country payroll operation. More news is in the offing. Enter with a strict stop loss.
Aurobindo Pharma to collaborate with the Council of Scientific and Industrial Research to develop vaccines against Covid-19 commercialise it. Add.
Aurionpro Solutions will install and maintain surveillance systems in Govt. establishments for 5 yrs. Around Rs. 74, this share looks good for investment with a 2- year perspective.
Tyche, a leading API manufacturer, has started its upward move again. Going by its Q1FY21 working, it may double its profit this year and the share may cross the Rs. 500 mark. An excellent buy.
Gayatri Projects is the lowest bidder for the water supply in the Kachonda Kalan group of villages in the Lalitpur district of UP. The project is to last 10 years. Around Rs. 18, this share is a good buy.
Max Healthcare Institute, which controls multi-speciality hospitals and covers the entire healthcare spectrum, will declare its Q2 results shortly. This share had hit a price of Rs. 142 but is presently available around Rs. 117. Buy for quick gains.
Lincoln Pharmaceuticals has received the European Union GMP certification for its manufacturing facility in Gujarat, which enables it to market its products to 27 EU countries. It’s the cheapest pharma share and can gain 30% as it’s likely to post an EPS of Rs. 30 in FY21.
GRM Overseas, which exports over 85% of its branded rice and cut its debts by Rs 134 cr., has boosted its net profit by 265% in Q1FY21 YoY. Its FY20 EPS of Rs. 89 is likely to be maintained in FY21 and the share may touch Rs 534 mark at conservative P/E of 6x. Accumulate.
Patels Airtemp manufactures an extensive range of Heat Exchangers, Pressure Vessels, Air-conditioning and Refrigeration equipments and Turnkey HVAC Projects. Its highly scalable business enabled it to post FY20 EPS of Rs 22.2. A reasonable P/E of 8.5x can take its share price to Rs 190 in the medium term. Buy.
Hinduja Global Solutions posted a FY20 EPS of Rs. 97. The robust growth of the Indian BPM Industry, preference for Indian BPM services in the US healthcare reforms and larger deals on the back of penetration and growth in the public sector market in Europe & Canada related to the digital, social media, analytics and automation segments all give it solid revenue visibility going forward. A good medium term by with 25% upside potential.
Bajaj Steel Industries, perhaps the only manufacturer of all cotton ginning machineries, posteda FY20 EPS of Rs 49.7 (FV Rs 5) and 97% higher net profit YoY in Q1FY21. With its presence in USA, it was able to tap the US & European markets and has set up a new unit to cater to them. The share trading at a P/E of 3.5x is expected to double from the current level. Buy.
Kaveri Seed Company, a leader in key crops, is a strong cash generator, pays consistent dividends and buys back its shares regularly at a price higher than the market price. This share can be bought for 30% gain gain of 30% in the medium term as it posted trailing EPS of Rs 51 based on Q1FY21.
Abbott India, a subsidiary of Abbott Labs of USA, develops and distributes over 600 healthcare products has posted 55% higher Q1FY21 net profit and may notch a FY21 EPS of Rs 375+. It is a strong bonus candidate and the share has all the potential to appreciate by over 20%. Buy.
Federal Bank with 1263 branches and 1936 ATM has notched 10% higher net profit in Q1FY21 and is expected to notch an EPS of Rs 9.2-9.5 in FY21. Its net NPA at 1.22% is the lowest in the last 20 quarters. With substantial growth in Deposits and Advances and CASA of 32%, the share trading at a forward P/E of 5.5 has all the potential to appreciate by 30%. Buy.
Malcom (India) Ltd., India’s leading Personal Protective Equipment provider, has notched a FY20 EPS of Rs 25. Present in over 50 countries across 6 continents, it has established itself as an integrated manufacturer and distributor for head to toe protection and is a valued partner of major importers. Buy for mega gains.
Shri Jagdamaba Polymers, a film packaging company having low equity capital of Rs. 88 lakh, is undergoing massive expansion and has posted a FY20 EPS of Rs.31 and may post an EPS of Rs 40 in FY21. Accumulate for decent gains.
Smruthi Organics is planning to expand its product portfolio in its core therapeutic categories of hypertension and diabetes to drive future growth and has notched 35% higher net profit in Q1FY21, which may lead to FY21 EPS of Rs,33 given the two new molecules it is working on. The share is expected to touch Rs 396 mark @12 P/E. Buy.
Gujrat cadre IAS S Aparna, who returned from the World Bank, has been appointed as Secretary, Pharmaceuticals. Apurva Chandra has been made Secretary, Labour and Employment in the GoI.
An Ahmedabad-based recommends Cochin Minerals Rutile, Indian Toners Developers, India Gelatine Chemicals, IOL Chemicals & Pharmaceuticals, Roto Pumps, RDB Rasayans, Sarla Perfomance Fibers (Sarla Poly), Sundram Fasteners, Themis Medicare, Tarmat and Ugar Sugar Works.