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Weekly ‘MONEY TIMES TALK’

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

> Manappuram Finance plans to hive off Ashirwad Microfinance. With a loan portfolio of Rs. 5360 cr. across 23 states and 25 lakh customers, this may be a good value unlocking opportunity. Buy and retain for 2 years.

> After the takeover of Bhusan Steel & Power, JSW Steel is keen to acquire Nilachal Ispat Nigam, a PSU. This expansion cum diversification plan can be a long term positive. Buy.

> GSFC engaged in crop protection solutions, fertilizers and chemicals posted excellent Q3 results and is also faring well in Q4. With forecast of a normal monsoon, the share is a good buy.

> An Ahmedabad based analyst considers Andhra Petro, Caprihans India, Cheviot, Gee, Haldyn Glass, H P Cotton, Ind Swift Lab, Klrfm, Likhitha Infra, Pioneer Embroideries, Pressman,Rana Sugars, Rubfila International, Religare Samrat Pharma and Vikram Thermo as potential multi-baggers of 2021-22

> Be cautious on Graphite India as it is fraught with big risks. Its welding sector is still not out of the woods while sales and profitability is on the decline. Only investors with deep pockets and long-term vision may consider this stock.

> IOL Chemicals & Pharmaceuticals is faring well and the deep correction in its share price is another lucrative opportunity. A new grass root plant is expected to start soon. Buy before it zooms again.

> Specialty steelmaker, Mukand Ltd., has sold 55 acres of surplus land in Thane for Rs. 801 cr. to repay its debt. It has also sold its 51% stake in Mukand Sumi for about Rs 714 cr. Buy for the long term.

> Steel prices are rising globally. NMDC has raised its lump iron ore price by 5%. Both SAIL and NMDC are good shares to add at current prices.

> IRCON is likely to declare bonus shares, as per information submitted to the exchanges. Add for the long term.

> IDFC Bank to raise up to Rs. 3000 cr. via QIP at a floor price of Rs. 60.34. Although this scrip looks fully priced, it is a good long-term hold. Add.

> Three more Rafale Jets taking the total to 14 enlarges the business opportunity for Reliance Infrastructure. It has also sold Reliance Centre for Rs. 1200 cr. to repay YES Bank debt. The company is on its way to become debt-free. Buy.

> Varun Beverages, the Indian bottler of Pepsico, witnesses rising volumes. As per company estimates, it expects 20-22% volume growth during the next two years. Buy.

> HAL has logged a mindboggling Rs. 22,700 cr. in top line on the back of IAF dues in spite of production cut and interruptions on account of Covid-19. A second interim dividend is likely followed by a bonus issue. Add.

> HCC has won a case against NHAI and expects to get around Rs. 1259 cr. as conciliation proceeds. Positive for HCC.

> Dixon Technologies has met the investment targets to become eligible for the 6% PLI incentives. A big positive. Price will rise substantially in a year. Buy.

> Bharti Airtel and Vodafone Idea have failed to pay their AGR installment by 31st March 2021. Price may dip marginally. Stay away for some time.

> Indraprastha Gas has signed a long-term gas supply deal with Delhi Transport Undertaking to supply CNG to its buses for 10 years. A big positive. Add.

> Ashok Leyland reported robust sales of 15,761 units in India (up by 810%). Results for Q4 are likely to be verry good. Add.

> Interglobe Aviation (Indigo Airlines)  has started 14 new flights under the Udaan Scheme to avail of incentives to encourage operations from unserved and underserved airports, and keep airfares affordable. Positive for the Company.

> Hawkins’ strong Q3 earnings and running at full capacity with new products, is expected to report a bumper Q4 and for the whole year too. Add.

> Jubliant Food is being tipped to gain by about 35% from the current level on better working results. In the last three years, the Company has reported over 22% CAGR.

> IZMO Ltd., a global leader in interactive marketing offering hi-tech automotive e-retailing solutions in North America, Europe, and Asia, has notched 36% higher Q3 EPS of Rs 6.3 and 179% higher 9MFY21 EPS of Rs 16.5, which could lead to FY21 EPS to Rs 23. The share may rise by over 100% in the medium to short term. Buy.

> Bajaj Steel Industries producing machinery for all cotton ginning technologies has registered Q3 EPS of Rs 33.9 (FV Rs 5) and Rs 70 for 9MFY21, which could lead to FY21 EPS of Rs 100. It has already acquired land in Butibori, Nagpur for expansion. The share trading at a P/E of 4.4x is expected to double from the current level and is a bonus candidate. Buy.

> LG Balakrishnan & Bros., the top supplier of Drive Chains with 70% market share and largest exporter to the US has achieved 93% higher Q3 EPS of Rs 17, which can lead to FY21 EPS of Rs 42 and to Rs 55 in FY22 on robust prospects of the auto sector. The share may advance by over 50% in the medium term. Buy.

> Ajanta Soya produces Vanaspati and cooking oils with bakery products like biscuits, puffs, pastries and other applications for blue-chip clients has notched 250% higher Q3 EPS of Rs 4.8 and 93% higher 9MFY21 EPS of Rs 15.7 that could lead to FY21 EPS of Rs 21. The expansion completed in Dec 2020 may boost FY22 EPS to Rs 25. Buy for 50% gain.

> Expleo Solutions, MNC from Expleo Group GMBH, posted Q3 EPS of Rs 12.3 and 9MFY21 EPS of Rs 38.5 is all set to garner FY21 EPS of Rs 60. This underpriced share has all the potential to touch the Rs 750 mark at a P/E of 12.5x in the medium term. Accumulate.

> Debt-free Kalyani Steels from the $3 billion Kalyani Group, manufactures various components for commercial vehicles, two wheelers, diesel engines, bearings, tractors, turbines, defence and rail is set to garner FY21 EPS of Rs 40. Its share may touch Rs 450 mark. Buy.

> Datamatics Global Services into global IT, Consulting, BPM and Data Management recently sold its 62.5% stake in Cignex for Rs 124 cr. and notched 112% higher Q3 EPS of Rs 3.8 (FV Rs 5). Reducing operating costs would result in a higher FY21 EPS of Rs 13 and the share can appreciate by 25% going forward. Buy.

> Talbros Engineering, leading manufacturer of Axle Shafts for cars, trucks, tractors, etc. is a strong company with a share book value of Rs 124. The recovery in the auto sector will push its earnings going forward and is expected to notch FY21 EPS of Rs 20+. Buy.

> Two decades-old, SP Apparels is a fully integrated manufacturer & exporter of knitted garments under the ‘Crocodile’ brand with 26 manufacturing facilities. With Q3 EPS of Rs 7.7 and 9MFY21 EPS of Rs 15, it is expected to notch FY21 EPS of Rs 23. The share could advance by 40% going forward. Add.

> Brightcom Group, formerly Lycos Internet, engaged in providing digital marketing services, and the development of computer software and services with three major divisions of media, software services and future technologies may notch FY21 EPS of Rs 10. The share may rise 40%. Buy.

> Cash surplus Welspun Corp has sold its plates and coil mills division to JSW Steel for Rs 848.5 cr. and sell its 43 MW power plant to Welspun Captive Power Generation for Rs 66.9 cr. Last week, it bagged a Rs 777 cr. order from the Middle East and expected to post Fy21 EPS of Rs 25. Shareholders can expect a hefty dividend. Buy.

> Adani Group has been on a roll in FY21 with its stocks surging from 500% to 1000%. But Adani Power has been lagging behind. If sources are to be believed, its delisting will happen near its IPO price of Rs.150. Buy at every decline.

> Digispice Technologies has corrected 50% from its peak and looks good for fresh investment. Its subsidiary, Spice Money, was recognized as one of the best BFSI brands by ET. Had it been a start-up, its valuation would have been around Rs.5000 cr. whereas it is available at a valuation of close to Rs.1000cr. A screaming buy.

> Jubiliant Ingrevia into speciality chemicals and life sciences chemicals was recently demerged from Jubiliant Lifesciences. It is a value buy around Rs.270 and can easily appreciate 50% from current levels. Compared to its nearest competitor; recently listed Laxmi Chemicals, the stock trades at nearly half the valuation.

> Jubiliant Industries plans restructuring its agro and consumer division. Its consumer brand ‘Jivanjor’ adhesive competes with the likes of Fevicol. The stock can get rerated from the current levels and can easily double hereon.

> Hemisphere Properties recently raised Rs.700 cr. to pay the stamp duty of its Delhi land bought from GoI. The stock is a goldmine and trades cheap at a market cap of just Rs.4000 cr. Buy for multi-bagger gains.

Disclaimer: The views and investment tips expressed by investment experts on Moneytimes.in are their own; however ExpresPost.in does not guarantee the accuracy, adequacy or completeness of any information. Readers are advised to check with certified experts before taking any investment decision.

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