Weekly ‘MONEY TIMES TALK’
- EP News Service
- Jun 14, 2021
✓ IOL Chemicals posted an excellent FY21 with PAT of Rs.
444.56 cr. v/s Rs.359.79 cr. and EPS of Rs. 76.21 v/s Rs. 63.51 and stepped the
dividend from Rs.4 to Rs.6. The expansion underway is financed by internal accruals.
Add.
✓ Asahi Songwon Colors posted FY21 EBITA rise of 44% and
declared a dividend of Rs. 3.50 on an EPS of Rs. 26.29 v/s Rs. 18.60 in FY20.
The stock merits a buy.
✓ Analyst are giving a big thumps up to Bharat Forge on
expectations of rising exports and defense orders. Add.
✓ The fortunes of Indiabulls Housing are changing after its
recent tie-up with HDFC Bank. DIIs and FIIs are also adding the share to their
holdings. Its asset light balance sheet and expectation of another dividend can
fuel another rally. Add.
✓ A Gujarat based analyst recommends to buy Archit
Organosys, BSE, Den Networks, Hindustan Construction Co.,Lasa Supergenerics,
Munjal Auto, Music Broadcast(Radio City), Mrs. Bector’s Food Specialities, RDB
Realty Infrastructure, Shilpa Medicare and Tourism Finance Corporation of
India.
✓ Big defence warship orders are flowing to Indian makers.
As a contrarian call, it makes sense to buy Reliance Naval around Rs. 3 as it
may be taken over by some giant.
✓ The management of PNB has guided that the Bank may notch
a PAT of Rs. 6000 cr. from Rs. 2000 cr. FY21. Add for multi-bagger returns.
✓ Bank of Baroda will set-off Rs. 11048 cr. loss against
the share premium account. It makes no difference in the financials and its
capital adequacy ratio will fall and create a false panic in the market. Stay
away for some time.
✓ Water technology major, Va Tech Wabag’s Q4 profits were
higher by 57% at Rs. 47 cr. Revenue from operations topped Rs. 999 cr. An
excellent long term investment. Add.
✓ Teamlease Services, a leading Human Resources company,
posted a stellar Q4 with NP rising to Rs 19.6 crore from a net loss of Rs 29.4
crore in Q4FY20. All its businesses have surpassed the pre-Covid levels with
strong headcount growth. Add.
✓ The Govt. has approved 708 proposals for construction of
3.61 lakh houses under the PMAY (urban) scheme. HUDCO will be a big
beneficiary. Buy.
✓ A sudden jump in the share price of Titan Biotech is
indicative of superlative results, which are around the corner. Buy this
multi-bagger before it is too late.
✓ The unlocking process has begun. Wonderla Holidays is
likely to bounce back soon. Start accumulating at these beaten down rates.
✓ Fairchem Organics has been posting better results. This
small cap company reported FY21 EPS of Rs. 32.63 v/s Rs. 26.65 last year. A
good long term investment.
✓ Marksans Pharma has issued convertible warrants to its
promoters and other QIP investors convertible into shares at Rs. 74 per share.
Retail investors may take a cue and add.
✓ The Management of Power Grid is scheduled to meet after a
week to consider the issue of bonus share. The Company is a good long term buy.
Add.
✓ Suven Pharma has entered in a tech transfer deal with
CSIR-IICT for COVID-19 drug Molnupiravir and 2-DG. A positive for the Company.
Add.
✓ Tide Water to consider splitting of its share, issue
bonus shares and dec ide on payment of dividend. Its consolidated net profit
jumped 58% to Rs 36.66 cr. on 19.6% rise in net sales to Rs 364.68 crore in Q4
FY21.
✓ Anil Ambani has made it clear that he will increase his
holding in Reliance Infra. SBI too has withdrawn the ‘fraud’ tag on some ADAG
companies. This news will help boost its share price. Add.
✓ Cables and wires major, Polycab plans to double its
revenue by 2026. Profits are expected to rise faster on the back of robust
demand and rising prices. Add.
✓ Cera Sanitaryware posted Q4 NP at Rs. 49.26 cr.
translating into a quarterly EPS of Rs. 35.19. FY21 EPS was Rs. 77.45 v/s. Rs.
28.63 last year. The share must be added.
✓ Mazagon Docks posted an excellent FY21 with NP at Rs.
527.65 cr. translating into an EPS of Rs. 25.48 v/s Rs. 21.09 last year. Buy
for huge returns as this defence PSU bags order after order.
✓ Talbros Engineering, a leading manufacturer of Axle Shafts
for OEMs is a strong company with a share book value of Rs 124. It posted Q3
EPS of Rs 7.3 and Rs 6.3 in Q2FY21 is expected to notch FY21 EPS of Rs 25. Buy.
✓ Cash rich Manaksia Ltd. has notched 176% Q3 EPS of Rs 4
and 9MFY21 EPS of Rs 9.3. Itpaid a dividend of Rs 10.5/share (FV Rs 2) or 525%
in FY20 and is likely to notch FY21 EPS of Rs 15. Buy for 50% gain.
✓ DOT has issued the guidelines for Rs. 12,200 cr. PLI
(Production-Linked Incentive) scheme for telecom and networking equipment
manufacturers like Sterlite Technologies, ITI, Birla Cable, Vindhya Telelinks,
Tejas Network and Universal Cables. Vindhya Telelinks is grossly underpriced
considering a likely FY21 EPS of Rs 180. Buy.
✓ Asian Granito has notched 170% higher Q4 EPS of Rs 6.2
and 33% higher FY21 EPS of Rs 18.6. A higher cash EPS of Rs 26 in FY21 would
make it debt-free going forward and notch FY22 EPS of Rs 28+. The share, which
made a lifetime high of Rs 617 on 15 Jan 2018, could cross the Rs 300 mark.
Accumulate.
✓ Universal Starch-Chem engaged in the starch business and liquid
glucose and dextrose has notched Q3FY21 EPS of Rs 5.7 and 9MFY21 EPS of Rs 8.6
on its small equity of Rs 4.6 cr. This could lead to an EPS of Rs 15 in FY21.
The share is expected to fetch 50% appreciation.
✓ NDTV, an independent broadcasting network, has posted 241%
higher EPS of Rs 4.1 (FV Rs 4) and 189% higher FY21 EPS of Rs 11 and may post
FY22 EPS of Rs 15+. The share could cross the Rs 120 mark in the medium term.
Add.
✓ Deccan Cements, manufacturer of a wide variety of
cements, has posted 725% higher Q3 EPS of Rs 24 and 56% higher 9MFY21 EPS of Rs
66, which could take FY21 EPS to Rs 90 on
its small equity of Rs 7 cr. The share, which made a
lifetime high of Rs 1280 on 28 April 2017 is poised to double in the
medium-to-short term. Buy.
✓ Eveready Industries notched 180% higher Q3 EPS of Rs 6.7
and 48% higher 9MFY21 EPS of Rs 18 and may post FY21 EPS of Rs 28. Recently,
the Dabur promoters increased their stake to 19.3%. Buy for decent gain of 25%.
✓ Rain Industries, one of the largest calcined petroleum
coke manufacturer with interests in cement, coal tar distillation and specialty
chemicals manufacturers having facilities has notched 90% higher Q1CY21 EPS of
Rs 6.1, which could lead to CY21 EPS of Rs 25. The share may touch Rs 250 mark.
✓ Indian Metals & Ferro Alloys has notched Q4 EPS of Rs
24 and FY21 EPS of Rs 62 on the back of strong operational performance and
healthy market conditions. The imposition of export duty on chrome ore by South
Africa will have a positive impact on ferrochrome prices. Accumulate for 30%
gain.
✓ Escorts Ltd, an automotive engineering co. in the agri-machinery,
tractors, construction machinery, material handling, and railway equipment etc.
has notched 67% higherFY21 EPS of Rs 92. People in the know expect FY22 EPS of
over Rs 110. Buy for 30% gain.
✓ Gallant Metal, which has an integrated steel plant for
sponge iron, mild steel billets, TMT bars etc. has notched 344% higher Q3 EPS
of Rs 4 and 194% higher 9MFY21 EPS of Rs 5.3, which could lead to FY21 EPS of
over Rs 10. Buy for 30% gain.
✓ Standard Greases and Specialities, a leading lubricating grease
manufacturer in Asia and Andrew Yule have bought 350100 shares in organic
chemical manufacturer Archit Organosys as it posted an encouraging 9MFY21 and
expects to turn around in Q4. Buy it on BSE for hefty gains.
✓ Tourism Finance Corporation’s stellar Q4 with NP rising
49% to Rs. 18.18 cr. v/s Rs. 12.17 cr. last year is an invitation to buy as its
management is optimistic about the future as unlocking begins. The stock trades
cheap and can give a quick 50% return.
✓ Mukesh Ambani group’s media stocks displayed a strong run
-up last week. DEN Network recorded a strong technical break out on record
weekly volumes. It is a good buy for 30% returns in the short term.
✓ Lasa Supergenerics, a leading manufacturer of veterinary
and human APIs, has added a new product Oxyclozanide, which is in huge demand.
Buy for good returns in short to medium term.
✓ Munjal Auto, a Hero MotoCorp group company, posted mind
blowing FY21 results with 401% higher PAT of Rs. 20.63 crore on 72.74% higher
sales of Rs.2134.38 crore. Buy for decent return in the short to medium term.
✓ Colgate kaa abhi bhi jawab nahin. The company has posted
super results but the stock is available at an attractive valuation lower than
the FMCG pack.
✓ Chyawanprash is good for health, even more so for Dabur
in the pandemic as demand exceeds supply. Even its ‘Red’ toothpaste is doing
well.
✓ Gilette has a cutting edge as it is available at much
lower valuation than its historical multiple.
✓ The 20% ethanol blending in petrol in future from the current
10% will benefit Gulshan Polyols, a debt free co.,that manufactures grain based
ethanol. The share trades cheap @Rs.170 and has yet to participate in the
ethanol based rally in sugar stocks. It can double from hereon.
✓ NELCO, a Tata group co., to amalgamate Tata Net Services
into itself. Tata Net is an internet service provider and a VSAT line provider.
A huge positive for the co. Buy at every decline for multi-bagger gains.
✓ Digispice Technologies recommended at Rs.30 last week has
doubled at Rs.60. The stock started correcting after inclusion in the T group
and ASM list. Any dip near Rs.40-45 levels would be a good buying opportunity
afresh.
✓ Shemaroo Music has become the 21st most subscribed YOU
TUBE channel in the world. Shemaroo Entertainment can monetize its vast content
library the way Saregama turned around after its new CEO monetized its library.
Keep Shemaroo on your radar.
✓ BN Rathi Securities posted the highest ever profit for
FY21 but the stock is well below its all-time high of Rs.52. It is trading at
an attractive PE of 4 and 0.6 times to Book value with 4% dividend yield. It
may give 50% returns within 1 year.
✓ Easy Trip Planner is a zero debt co. and only profitable
player providing comprehensive travel services. It ranks 2nd by booking volume
and 3rd by booking revenues and has tiedup with Just Dial Ltd to provide Air
Travel Services. The stock could give 2x to 3x return.
✓ Shilpa Medicare has tied-up with Dr. Reddy`s Labs for production
& supply of Sputnik V vaccine. It is expected to manufacture 100 – 200 mn
doses of vaccine. It’s a good buy for good returns in the near term.
✓ Hindustan Construction Company`s JV won an order of Rs.
1147 cr. for construction of 7.95 km of Chennai Metro Rail apart from metro
work in Mumbai, Delhi, Pune & Bangalore. Stock could give superb 2x-3x
returns.
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