Tower Talk
📌 TVS Motor Company’s August sales fell 15% YoY. The festive season is also not likely to be any better. Stay away from this counter for a while.
📌 The government has approved infusion of Rs.9300 crore in IDBI Bank, which will help it come out of RBI’s PCA (Prompt Corrective Action) framework. A good time to invest at the current beaten down level.
📌 VST Tillers Tractors’ August tractor sales jumped 57% YoY to 813 units. Its future looks bright. Accumulate.
📌 Thomas Cook’s subsidiary, Sterling Holiday Resort, is contributing to its growth. Despite rumours of declining profits, Thomas Cook remains a good buy.
📌 The Carlyle group and General Atlantic (Singapore) are likely to raise their investment in PNB Housing Finance. Moreover, Moody’s has raised its outlook to stable on the back of recent mergers and declining NPAs. Accumulate.🔺
📌 Maruti Suzuki India has announced a two-day shutdown. A total cut of ~30% in August is likely to hamper its profitability. Stay away from this counter for some time.
📌 Lupin joins Boehringer (West Germany) to develop drugs to treat cancer. Accumulate for the long term.
📌 Mahindra & Mahindra plans to launch its first product i.e. trucks and pick-up vans in association with Ford by 2022. An attractive buy.
📌 A weakening rupee against the dollar augurs well for Wipro. Buy for the long term.
📌 Gujarat State Petronet is ramping up its gas pipelines in Gujarat to ensure higher penetration. Accumulate.
📌 Volumes at the Yes Bank counter have started rising again as the bank plans another QIP. Its lost glory may slowly come back.
📌 JSW Steel plans to raise $350 million to refinance its high interest debts. This will improve its profitability. Accumulate.
📌 Hero MotoCorp has launched ‘BS VI Splendor’, which is priced ~12-15% higher than the current version ‘Splendor iSmart’. Its profitability is likely to improve. Accumulate for long term.
📌 Dr. Reddy’s Laboratories has launched an anti-smoking drug in the US markets. A positive for the company. Accumulate.
📌 Cochin Shipyard has received an order for building 23 boats for the Kochi Water Metro Project. Buy for the long term.
📌 Laurus Labs receives Establishment Inspection Report (EIR) from the USFDA for its Visakhapatnam units. The company has a long way to go. Accumulate.
📌 Aditya Birla Capital will raise Rs.2100 crore through a preferential share allotment to certain investors and the promoters. Buy for the long term.
📌 Polyplex Corporation, which is likely to notch an EPS of Rs.100 for FY20, paid a 510% dividend for FY19. The stock is surprisingly available at Rs.444. This potential bonus candidate is a big buy
📌 Going by its FY19 performance, Shreyans Industries is expected to notch an EPS of Rs.38+ for FY20. Buy for about 50% returns in the medium term.
📌 Dhampur Sugar Mills, which posted 89% higher Q1 PAT, has attracted heavy investment buying. The stock may touch Rs.250.
📌 Going by its expansion initiatives, Pokarna is likely to notch a consolidated EPS of Rs.35 for FY20. The stock may touch Rs.180.
📌 Debt-free and cash-rich IT major, Mastek, has posted an EPS of Rs.43 for FY19 on an equity capital of just Rs.12 crore. A reasonable P/E of 12.5x will take its share price to Rs.540.
📌 Mawana Sugars, which posted an EPS of Rs.11 for FY19, is on a debt-reduction drive. It may notch an EPS of Rs.14 for FY20. Buy for about 50% returns.
📌 Going by its Q1 performance, Refex Industries is likely to post an EPS of Rs.25-27 for FY20. Its future looks bright and the stock is available cheap.
📌 Reliance Jio targets 20 million customers for its gigafiber. This is no easy task given its tariffs. However, Jio holds ~70% stake in Den Networks and Hathway Cables, which together have around 15 million customers and are likely to be converted into Jio users. Hathway Cables can be a good long-term bet.
📌 Capacite Infraprojects recently bagged a Rs.4500 crore order from CIDCO to construct affordable houses in Navi Mumbai. It is also a contractor for Oberio, Arihant and many more developers. A dark horse in the realty space.
📌 UFO Moviez is in talks with Jio for content sharing. The stock is available cheap at Rs.146 considering its 52-week high of Rs.392. With 20% dividend yield, this stock looks very attractive.