Weekly ‘MONEY TIMES TALK’
- EP News Service
- Feb 08, 2021
Weekly column ‘MONEY TIMES TALK’ is a very popular round up of stocks / equity markets (BSE / NSE) live news and updates and subtle recommendations from Moneytimes.in
> KPIT Technologies’ Q3 results will help regain the lost ground due to
Covid-19. The Company has an exciting future. Add.
> Shriram Transport is going full throttle and produced best
quarterly results in the last two years. Collection efficiency has reportedly
touched 104% levels. Add.
> Indian Oil declared an interim dividend of Rs. 7.50/share apart
from declaring improved Q3 results. The share is available at its book value
and merits a buying.
> An Ahmedabad based analyst recommends to buy APM Finvest, IOl
Chemicals, Ind Swift Lab, Magna Electro, Morepen Lab, Menon Bearing and Nitta
Gelatine
> Rama Phosphates has commissioned its Udaipur facility to make
LABSA, its Indore facility to make Sulphuric acid is nearly ready and its good
Q3 results with revenue from the new plants will boost its stock prices. Add.
> Dixon Technologies may reduce the FV of its share from Rs. 10 to
Rs. 2 to inject liquidity into its scrip. With Q3FY21 profits more than twice
of Q3FY20 and orders to make Nokia cells its future is rosy. Add.
> The Budget has sharply raised allocation on infrastructure and
affordable housing. Buy Ashoka Buildcon and Dilip Buildcon.
> The budget has allocated Rs. 478196 cr. for defence. Buy HAL, BEL,
M&M, and Bharat Dynamics.
> Escorts posted an 81% jump in Q3NP at Rs. 382.49 cr. on 26% higher
tractor sales. It also makes locomotives for Indian Railways, which has a very
big budget allocation. Add.
> Dahanuka Agritech’s Q3 profits spurted by over 43% on 9% rise in
revenue. The Met department has forecast normal rainfall this year too. A good
long term buy.
> Despite low construction activities, Cera Sanitaryware posted 6%
higher profits on a 3% decline in revenue. With big sops for affordable housing
it will be a big benificiary. Add.
> Dr Reddy’s Laboratories has launched Vigabatrin tablets in the USA.
There is no stopping this drug major. Add in small quantities for long time to
come.
> Money Times was the first to make an exit call on DHFL when it was
hitting upper circuits as retail shareholders are unlikely to fetch any
residual value on their holdings upon takeover by new promoters. The sell call
continues.
> Jubliant Foodworks’ (Domino’s Pizza) Q3 PAT jumped 22% to Rs 124
cr. with cash & cash equivalents rising to Rs. 952 cr. from Rs. 828 cr. at
end September 2020. With the pandemic receding, its current working should also
improve. Add.
> Butterfly Gandhimathi Appliances posted a stellar Q3. Profit at Rs.
28.54 cr. was 9 times higher from Rs. 3.19 cr. in Q3FY20. The share will
continue to rise. Buy.
> With higher tax benefits for first time affordable housing buyers,
the demand is likely to rise. Buy Kolte Patil.
> The government is firm on divesting BPCL this year. Aggressive
bidding will boost its share price. Add.
> With Mumbai resuming rail travel and Mumbai Metro open to all, Reliance
Infra expects to post good results. With release of amounts held up in
arbitration, it could turn around sooner than later. A good bet if held for 3
years.
> REC’s excellent Q3FY21 with EPS rising to Rs. 11.44 in Q3FY21 from
Rs. 8.43 in Q3FY20. Its book value has crossed Rs. 211. Although second interim
dividend was not declared, it is only a few weeks away. Buy for handsome gains.
> Bajaj Steel Industries, the only company producing all cotton
ginning machinery, posted Q3 EPS of Rs. 33.9 and Rs 70 in 9MFY21 on its Rs. 5
share and could end FY21 with an EPS of Rs 100. It has already acquired land in
Butibori (Nagpur) for expansion. The share tradeing at a P/E of 3.2x is expected
to double from the current level and is a strong bonus candidate. Buy.
> LG Balakrishnan & Bros, the top OEM supplier of Drive Chains
with 70% market share and about 50% in the Replacement market, posted 93%
higher Q3 EPS of Rs 17, which can lead to FY21 EPS of Rs 42 and to FY22 EPS of
Rs 55 on robust prospects of the auto sector. The share can rise 50% in the
medium term.
> Vishnu Chemicals manufactures & markets chromium chemicals and
other specialty chemicals has posted 41% higher net profit in Q3FY21, which
could lead FY21 EPS of Rs 28. The share trading at a forward P/E of 5.9x, much
below the industry average P\E of 33, has all the potential to appreciate by
30%. Buy.
> Deccan Cements, manufacturer of a wide variety of cements including
specialty cement conforming to BIS, British and ASTM standards with ongoing
expansions, has posted HIFY21 EPS of Rs 43 that can lead to FY21 EPS of Rs 60+
on its small equity of Rs. 7 cr. The share can appreciate by 30%. Buy.
> Amarjothi Spinning, producer of a variety of yarns having windmills
of 17.6 MW, has clocked an EPS of Rs 8.6 in Q2FY21 and Rs 9.7 for 9MFY21. With
this, Amarjothi is expected to notch an EPS of Rs 22 on its small equity of Rs
6.8 cr. The share is expected to cross the Rs 150 mark. Accumulate.
> Datamatics Global Services, a global IT, Consulting, BPM and Data
Management Company that recently sold 62.5% in Cignex for Rs 124 cr. has
notched 112% higher EPS of Rs 3.8 (FV Rs 5) in Q3FY21. With lower reducing
operating costs, higher EPS of Rs 13 in FY21 is likely. The share may
appreciate by 30%.
> Pitti Engineering, an integrated complete engineering solutions
provider, has expanded capacity from 36,000 to 46,000 TPA for sheet metal
components in engineering products has notched 45% higher EPS of Rs. 3.2 in
Q2FY21 is expected to notch FY21 EPS of Rs 10. A reasonable P/E of 8 can take
its share price to Rs. 80. Buy.
> Angel Broking, India’s 4th largest stockbroking house has notched
137% higher EPS of Rs 9 in Q3FY21 and 251% higher EPS of Rs 24 in 9MFY21. It
made an IPO at Rs 305/share recently is expected to notch an EPS of Rs 37 in
FY21. The share is expected to fetch a gain of about 25%. Buy.
> Eldeco Housing, a leader for over 3 decades in Lucknow, has posted
Q2FY21 EPS of Rs 80 and H1FY21 EPS of Rs 117, which could lead to FY21 EPS of
over Rs 260+ on small equity capital of Rs 2 cr. The share, which made a
life-time high of Rs 2694 on 29 Jan 2018, is expected to touch Rs 3000+ mark.
Buy.
> Substantial investment buying was reported in Vedanta as it
reported 41% higher EPS of Rs 8.9 in Q3FY21 and EPS of Rs 14 in 9MFY21. It is
expected to notch an EPS of Rs 25 in FY21 and Rs 33 in FY22. The share is
likely to appreciate by 30% going forward. Accumulate.
> Linclon Pharmaceuticals has developed 600+ formulations in 15
therapeutic areas has notched 23% higher EPS of Rs 6.7 in Q3FY21 and 17% higher
EPS of Rs 24.8 in 9MFY21 that may lead to FY21 EPS of Rs 32. A reasonable P/E
of 12 can take its share price to Rs 384 in the medium term. Add.
> Prakash Pipes manufacturing PVC Pipes and their related Fittings
along with flexible packaging with state-of-the-art plant for customers in
FMCG, Food, Beverages, Infrastructure, and Pharmaceutical products is expected
to notch an EPS of over Rs 16 in FY21. The share may touch Rs 160 mark. Buy.
> With a strong H1FY21 performance and business prospects driven by
favorable agronomic conditions and strong agri-commodity prices, UPL Ltd has
redeemed the USD 410 million Notes with the cash in hand and de-leverage its
balance sheet. Most analysts projects its target price of Rs 700+.
> Triveni Engineering with 7 sugar mills, 6 co-generation units (103
MW) and 1 distillery spread over 8 locations in Uttar Pradesh has posted 109%
higher EPS of Rs 3.9 in Q3FY21, which would take FY21 EPS of Rs 14 in FY21. It
also manufactures high-speed and low-speed gears and gearboxes for the defence
sector and is also into water & wastewater treatment solutions. Buy for 30%
appreciation
> BSE listed Ishan Dyechemicals posted an excellent Q3 with an EPS of
Rs.3. It has Clariant, Lanxess, Ciba, Pyosa, and many multinationals as its
clients. The stock is available cheap at Rs.55 and can easily appreciate 50%
from hereon.
> Acrysils capacity expansion has begun. With growing demand for home
improvement products it plans another expansion. This stock has can double from
the current level.
> Tata Motors DVR trades less than half the Tata Motors stock price.
Globally, DVRs trade at just 2-5% discount while some even at a premium of
5-10% because of the dividend yield. Buy this stock for the arbitrage it
offers.
> Cosmo Films’ excellent Q3 and an interim Rs.25/share sent its stock
flying to a 52-week high. Some years ago, SRF was trading at similar valuations
and the rest is history. Can Cosmo become the next SRF? Some investors think
so. Buy at every decline.
> Home First Finance saw a subdued listing last week. It operates in
the affordable housing segment but trades at nearly half the valuation compared
to Aavas Finance. The stock is a good buy at every decline.
> SAIL made a good upmove from around Rs.55 to Rs.65. Sources in the
know aver that ace investor, Radhakishan Damani, has bought a chunk in the
Offer For Sale and the stock could see heightened activity going forward.
> Intellect Design’s Q3 numbers matched the management’s forecast. It
has won orders competing with Oracle and Infosys. Speculation is rife that it
may post FY21 EPS of Rs. 20+, which could see its share price headed towards
Rs.600.
> PNB, a large PSU bank is available at a cheap valuation. Like
superb numbers from Canara Bank and SBI, PNB has also delivered good numbers.
Buy with a target price of Rs. 60.
> Som Distillery & Brewery can rebound sharply in the coming
quarters. With 3 million cases sold, it still trades at 50% discount to its
book value. It generated decent cash in H1FY21 despite the pandemic and reduced
its debt. Buy for decent gains.
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