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Weekly ‘MONEY TIMES TALK’

TCS will take over the operational management of Virgin Atlantic Airlines. Although the financial part of the transaction has not yet been disclosed, this is a positive for TCS. Add.


DLF has posted strong Q4 FY21 NP at Rs. 477 cr. on strong residential demand against a loss of Rs. 1860 cr. in Q4 FY20. Although FY21 consolidated revenue was lower at Rs. 4385 cr., the current year looks promising. Add.


SAIL’s Q4 NP surged 31% to Rs. 3470 cr. due to operational efficiency. The Company posted its highest ever quarterly performance, which makes this stock a good buy.


Hinduja Global shares are soaring on talk of stake sale in its healthcare arm. As the share price has trebled from Rs. 716 to Rs. 2528, investors need to be very careful before taking a plunge.


A Gujarat based analyst recommends to buy Allied Digital Services, Arihant Capial Markets, Acknit, Cebbco, Centrum Capital, Century Extrusions, Elecon Engineering, Ganesh Benzoplast, Lambodhara Textiles, Mahalaxmi Rubtech, Panasonic Energ, Pitti Engineering, Religare Enterprises, Singer India, Solitaire Machine Tools and Zee Learn.


Deccan Cement’s results confirm the boom in the cement industry. ItsQ4 EPS stood at Rs. 15.76 v/s negative Rs. 1.11 in Q4FY20. FY21 EPS was Rs. 82.19 v/s Rs. 40.44 in FY20, which augurs well for the company. A good buy at current rates.


Digital advertising & marketing giant, Brightcom, witnessed buying by strong investors as it posted FY21 EPS of Rs. 8.88 and it is slated to declare dividend on 28th June. Around Rs. 14, this share looks like a steal. Buy.


Power Finance posted a super FY21 EPS of Rs. 44 v/s Rs. 27 in FY20. Instead of running behind speculative stocks, prudent investors should add this counter for long term gains.


Jio has started the field trials of its 5G services. HFCL, which makes equipment for 5G, is one of the best buys. Add.


LIC Housing reported a 97% rise in Q4 disbursals. Its FY21 EPS stood at Rs. 54.32 v/s Rs. 47.63 in FY20. An excellent and safe share to add.


Satin Creditcare faces hard times on the collection front. Against FY20 EPS of Rs. 28.69 last year, the FY21 EPS was a negative Rs. 2.26. Sell and stay away.


Ashok Leyland has acquired Switch Mobility Automotive to boost the electrical vehicle (EV) sector. Add.


The pandemic seems to have favored entertainment giant Tips Industries. Its NP shot up from Rs. 11.45 cr to Rs. 43.55 cr, and the EPS jumped from Rs. 7.92 to Rs. 32.72. Add.


Power Grid posted an excellent FY21 with NP at Rs. 12,062 cr. v/s. Rs. 10,955 cr. in FY20. The EPS stood at Rs. 23.01 and it declared 1:3 bonus. Add.


Lupin has got USFDA approval to market sevelamer-hydrochloride tablets to control serum phosphorus in patients with chronic kidney disease. A positive for the Company. Add.


HDFC Mutual Fund has picked up a stake in Balkrishna Industries. This morale booster for this stock. Add.


Asahi India Glass posted a good EPS of Rs.5.47 in spite of the Covid-19 lockdowns. The pentup demand and Q4 EPS of Rs. 3.46 indicates better times ahead. Hold.


Emessar Bio, recommended a month back at Rs. 23.25 has doubled to Rs. 47. The share refuses to come down and may be held for some more time.


Footwear major, Khadim India, posted Q4 EPS of Rs. 6.42 against Q3 EPS of Rs. 2.47 and a negative Rs. 11.06 in Q4FY20. Although FY21 ended in a negative zone, the Company can recover fast due to the pent up demand. Add in small lots.


A small knee-jerk reaction in the stock market sent Titan Biotech tumbling from Rs. 410 to Rs. 348. But its financials remain intact and it is slated declare excellent Q4 & FY21 results. Buy.


Caplin Point, which is into Generic drugs and has a big foothold in Central America, has witnessed a huge rise in volumes and price. A mini correction has made this share more affordable. Grab it before it jumps up again.


Nile Ltd., manufacturer of Lead and its alloys has notched FY21 EPS of Rs 46.2 on its small equity of Rs 3 cr. It is now setting up a Lithium ion recycling plant and diversifying into natural extracts to meet the needs of the nutraceuticals, cosmetics and food industries. This share that hit an all-time high of Rs 1164 on 07 Nov 2017, is all set to touch Rs 900.


Tyroon Tea Company, manufacturer of CTC and Orthodox teas, has notched 999% higher Q3 EPS of Rs 9.7 and 9MFY21 EPS of Rs.36. Given the seasonal business of tea, it could notch FY21 EPS of Rs 26 on its small equity of Rs 3.5 cr. The share may double from the current level.


LG Balakrishnan & Bros., the leader of Drive Chains, has achieved 356% higher Q4 EPS of Rs 18.5 and 45% higher FY21 EPS of Rs 42.5, which could lead to FY22 EPS of Rs 60 on the robust prospects of the auto sector. The share can advance by 50%. HDFC Asset Management is a buyer in the counter.


Voith Paper Fabrics, a 74% German MNC, has notched 26% higher Q4 EPS of Rs15 and 10% higher FY21 EPS of Rs 61.7. With 30% expansion of capacity, it is expected to post FY22 EPS of Rs 75. Buy for 30% gain.


Debt-free Lincoln Pharma notched 42% higher Q4 EPS of Rs 6.3 and 21% higher FY21 EPS of Rs 31 is the cheapest pharma stock. With a likely FY22 EPS of Rs 38, the share trades at a forward P/E of 8.1x. Accumulate for 30% gain.


Suryaaamba Spinning, manufacturer of 100% polyester & viscose spun yarns and blended synthetic yarns, has garnered 151% higher Q4 EPS of Rs 10.5 and FY21 EPS of Rs 14.5 is expected to notch FY22 EPS of Rs 18 on its small equity of Rs 2.9 cr. The share may appreciate by 30%. Buy.


Chennai Petroleum Corporation has notched Q4FY21 EPS of Rs 16.3 and FY21 of Rs 17.3 due to higher refinery margins. The share is likely to touch Rs 160 in the short term.


Deccan Cements, manufacturer a wide variety of cements and undergoing expansions has posted 847% higher Q4 EPS of Rs 15.8 and 103% higher FY21 EPS of Rs 82.2 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.


Ajanta Soya, manufacturer of Vanaspati and cooking oils with applications for bakery products having blue-chip clients has notched 250% higher Q3 EPS of Rs 4.8 and 93% higher 9MFY21 EPS of Rs 15.7, which could lead to FY21 EPS of Rs 21 and FY22 EPS of Rs 25. Buy for 50% gain.


Power Finance Corp, a Navratna PSU with a healthy loan book and low NPAs, has notched 522% higher Q4 EPS of Rs 11.1 and 65% higher FY21 EPS of Rs 44.5. The share is poised to scale up to Rs 160 in the near term. Buy.


Scan Steels with plants in Odisha and Karnataka for sponge iron, billets and TMT rods & steel manufacture has notched Q4 EPS of Rs 4.5 and FY21 EPS of Rs 5.9. This could lead to FY22 EPS of over Rs 18. Its share book value is Rs 57. Buy for 100% gain.


Dhunseri Ventures has notched Q4 consolidated EPS of Rs 33.7 and FY21 consolidated EPS of Rs. 66.3 is expected to announce liberal bonus. Given a P/E of 8.5x, the share could touch Rs 563 in the medium term.


ISGEC Heavy Engineering has received a fabrication order of national importance from Tata Projects. ISGEC has notched 14% higher Q3 EPS of Rs.9 and 40% higher 9MFY21 EPS of Rs.25.1 on its tiny equity of Rs 7.4 cr. It is likely to notch FY21 EPS of Rs 35 and FY 22 EPS of Rs 40. The share may head towards Rs 750 mark. Buy.


Zee Learn is revolutionising education with the fastest growing chain of K-12 schools with ‘Mount Litera Zee School’ and Asia’s No 1 pre-school network ‘Kidzee’ in its portfolio. With good fundamentals and low valuations, there is a 50% upside potential in this counter.


The Pasricha family, promoters of TCNS Clothing, have bought 1.5 lakh shares at an average price of Rs.53.14 and acquired 0.6% stake in Pioneer Embroideries. Will Pioneer rock like TCNS Clothing in the stock market?


Heritage Foods is trading at an attractive PE of just 13 against the industry average of 46 and a market cap less than its FY21 sales against the industry average of 3 times sales, which has attracted some HNIs. On re-rating, it can fetch 50% gain in the short term.


Century Extrusions made its highest weekly closing since 1st November 2016. It is one of India’s largest pure play aluminum extrusion manufacturer. Technically, it is a very strong breakout after 5 years on the charts. Buy.


Elecon Engineering posted its highest ever operating profit of Rs.186 crore in the last 8 years and also the highest operating profit margin in the last 12 years. A huge turnaround is seen in its business. Buy.


Pitti Engineering has notched 1279% higher Q4 EPS of Rs 6.62 and 68% higher FY21 EPS of Rs 8.97. Buy for a decent return in the short to medium term.


Allied Digital Services and its subsidiaries have bagged multi -year deals worth Rs. 133 crore. Mr.Nitin Shah, CMD, said that the hard work of the last few years on internal transformation is paying off. Buy for decent gain in the short to medium term.


RPP Infra Projects is available at 9 PE only with a very good order book position. Technically, if it crosses Rs.69, it may cross Rs.76 fast. But if it crosses Rs.77 with volumes, it may cross its 52-week high of Rs. 83 very fast. Buy for good return in the short term.


Lambodhara Textiles board to meet on 25th June for FY21 results and dividend. Huge volumes on Friday at its 52 week high of Rs.89.20 technically indicates that the results may be superb. Buy for decent gain in the short term


Solitaire Machine Tools announced 114% jump in FY21 net profit. Buy for decent gains in the short to medium term


With natural rubber prices hitting the roof, usage of synthetic rubber is bound to rise. Apcotex Industries, promoted by ex-MD of Asian Paints, the leading producer of synthetic rubber will see better days ahead and can turn out to be a multi-bagger.


Despite threats from e-commerce, Redington posted one of its best quarters. With 5% dividend yield, 30% of market cap in cash, and a trailing P/E of less than 10x, one wonders why this stock cannot be a multi-bagger?.


Marksans Pharma sold nearly 10% stake to Orbid Asia Fund @ Rs.74/share and the promoter has allotted 10 lakh warrants to himself @ Rs.74. The stock trading at Rs.84 could double in the medium term and the downside seems limited.


Ambalal Sarabhai, the leading API producer of the black fungus disease, has seen its share price correct from about Rs.65 to Rs.34. The co. posted Q4FY21EPS of Rs.2. A decline towards Rs.30 would be a good entry point for a quick 50% gain.


Mr. Jasti of Suven Lifesciences is confident of launching a blockbuster drug for the treatment of Alzhiemer by the next financial year. He has taken preferential allotment @ Rs.82/share to infuse money for R&D in the co. The stock trades cheap @ Rs.92 and can be a hero or zero as the drug development progresses.


The IPO market continues strong as ever with the grey market buoyant in Gujarat. The New Issues commanding handsome premiums are: India Pesticides: Rs. 90-93; Shyam Metalics: Rs.130-133; Dodla Dairy: Rs.90-93; Sona BLW: Rs.3-4; KIMS: Rs.23-25. Readers are warned not to be carried away by such unofficial premia rates as they merely reflect the brokers' sentiment and are often manipulated to market an IPO.


Rossari Biotech’s growth to accelerate following its acquisition of speciality chemical maker Unitop Chemicals and commissioning its green-field facility at Dahej in Gujarat. The stock has consolidated for a month now and is ready for an up-move. Buy above Rs. 1235 for a target of Rs.1400.


MSTC Telangana to auction government land parcels on its e-auction platform, which will greatly benefit the co. in coming quarters. The auto scrapping policy is a booster for it as Mahindra Cero plans 25 automotive recycling units along with it by 2025. Buy MSTC for a target of Rs.380.


Solar pumps is a priority for the government. As Shakti Pumps leads in this segment, the stock can go places from hereon.


IFB Industries has expanded its air-conditioner manufacturing capacity to meet the growing demand of its brand and outsourcing for others. Will it be as popular as IFB washing machines & dishwashers, which have a waiting list?


TTK Prestige is being consistently re-rated on the back of better results, widened product range and penetration in untapped markets. A blue-chip with great potential.

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