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Weekly ‘MONEY TIMES TALK’

> Rumours are the flavour of power circles and stock markets. The latest is that Piyush Goyal will be the new Finance Minister and Jyotiraditya Scindia to take over the Railways. Marwadi circles are already betting on the Bank Nifty touching 38000!

> DCM Shriram Industries recommended at Rs 280 three weeks back is now Rs 420.

> BN Rathi Securities recommended at Rs 30 two weeks back is now at Rs 39.

> Reliance Industries to infuse Rs. 75000 cr. into the clean energy business. The induction of Aramco chairman on its board signals its commitment to energy. Although the market did not respond to its 44th AGM announcements, this share must be held.

> A Gujarat based analyst recommends to buy Alphageo cum 80% dividend, Aro Granite, D-Link India, JSW Ispat Special Products, Lambodhara Textiles cum 20% dividend, MNC Panasonic Energy India cum 80% dividend, Samkrg Pistons cum 50% dividend, Sakthi Finance, Skipper Ltd.,Sona BLW (sonacoms), UFO Moviez India and Voltamp Transformers cum 250% dividend.

>  Ajooni Biotech, a small cap cattle feed company listed on the NSE only, has tied up with Patanjali for sale of its entire output. The share is available at around Rs. 56. Buy.

RTN Power is working almost at full capacity and its overdue loans have been restructured. It is now expected to make rapid strides. Buy.

>  Vaccine king, Adar Poonawalla of the Serum Institute, after exiting Panacea Biotec completely bought Magma Finance, a NBFC, and a stake in Policybazar, which is headed for an IPO this year.

After Money Times recommended footwear major Khadim, the share price has taken a big jump and is slated to go up further. Add.

> NMDC posted super Q4 results and FY21 EPS zoomed to Rs 20.70 v/s Rs. 11.67 last year. Since iron ore prices are still rising, this year could be even better. Add.

> Shiva Mills’ FY21 EPS soared to Rs. 9.90 v/s Rs. 1.32 last year. This small cotton textile share can be bought in small quantities.

> Omaxe Autos posted Q4 EPS of Rs. 9.44 despite the slowdown in the auto sector. Although it ended FY21 in the red, this small cap auto ancillary stock must be added.

> VST Tillers Tractors’ Q4FY21 EPS skyrocketed to Rs. 14.97 v/s negative Rs 3.91 in Q4 FY20. The full year EPS of Rs. 105.06 calls for immediate buying.

> Auto companies are ramping up to meet the rising demand. M&M should be added as it also has many subsidiaries and investments in varied sectors. Add.

> Cadila and Bayer have extended their JV partnership for 3 years in the wake of the booming pharma industry. Add both.

JSW Cement has forayed into ready-mix concrete (RMC) business which has a growing demand. Add.

5G traction will boost Tech Mahindras’ order book. The share may jump around 30% in a short time. Accumulate.

>  Rana Sugars posted Q4 EPS of Rs. 4.77 and FY21EPS of Rs. 10.27 and the share is poised for a big rise. But as it has disappointed investors in the past, it’s a calculated risk.

>  Just listed Shyam Metalics looks attractive on the back of rising iron ore prices. Risk bearing investors may add small quantities.

> A sudden surge in price and volumes of Rama Phosphates signals a good Q1FY22 as the new capacities will add to profitability. A good share with a year’s perspective. Buy.

> Eldeco Housing posted a super FY21 EPS of Rs. 275.5 v/s Rs. 199.22, which makes it an excellent buy. Its small equity is the cherry in the cake. (CMP: Rs. 2800)

> Ashok Leyland posted good Q4 results but ended FY21 in a loss. The Q4 results signal a sharp turnaround. Add gradually.

>  Indian Bank has raised Rs. 1650 cr. via QIP at Rs. 142.15 per share. This share is on a comeback trail and can be safely added with a horizon of three years.

>  Indraprastha Gas posted a good Q4 with profit rising 31% on a flat revenue of Rs. 1551 cr. and declared a dividend of Rs. 3.60. Its profits may rise further in the next few quarters. A good long term share.

> Thermax’s wholly owned unit has won Rs. 250 cr. order for a claus package and an oxidizer package in the Sulphur recovery unit of a greenfield refinery in South America. Add.

PIL Italica, formerly Peacock Industries, plans to expand to the 5 southern states by setting up, acquiring or leasing plastic injection moulding facilities to enhance production by 3600 TPA.

>  GEE engaged in welding products, copper & copper alloys for 51 years has posted 30% higher Q3 EPS of Rs 1.9 (FV Rs 2) and 55% higher 9MFY21 EPS of Rs 3.4, which could lead to FY21 EPS of Rs 5.8 on its small equity of Rs 4.7 cr. The share trading at a forward P/E of 8x can touch Rs 72.50 at a reasonable P/E of 12.5x.

>  Ineos Styrolutions India, a 75% MNC held, has notched Q4 EPS of Rs 92 and FY21 EPS of Rs 159. With robust demand for styrene products and high market prices of styrolutions with strong margins, it may post FY22 EPS of Rs 200+. The share has all the potential to touch Rs 2000 mark. Buy.

>  Ganesh Benzoplast, manufacturer and exporter of food preservatives, lubricant Additives, API drugs, Sodium Benzoate, Benzoic Acid and Benzaldehyde etc. has notched 12% higher Q3 EPS of Rs 1.9 and 40% higher 9MFY21 EPS of Rs 6.6, which could lead to FY21 EPS of Rs 9. Buy for 30% gain.

>  Amarjothi Spinning, producer of a variety of yarns & 17.6 MW of wind power, has registered 61% higher Q3 EPS of Rs 7.6 and 17% higher 9MFY21 EPS of Rs 16.9, which could lead to FY21 EPS of Rs 25 on its small equity of Rs 6.8 cr. The share is expected to cross the Rs 200 mark. Accumulate.

>  GNFC, manufacturer of fertilizers and chemicals, has posted 29% higher Q4 EPS of Rs 20 and 37% higher FY21 EPS of Rs 44.9. With robust prospects, it may post FY22 EPS of Rs 55+. The share, which made a life-time high of Rs 548 on 24 Oct 2017, has the potential to touch Rs 550 mark. Accumulate.

>  Asian Granito with 8 plants and exports to over 100 countries notched 170% higher Q4 EPS of Rs 6.2 and 33% higher FY21 EPS of Rs 18.6. Higher cash EPS of Rs 35 in FY22 could make it debt-free going forward and notch FY22 EPS of Rs 26+. The share, which made a lifetime high of Rs 617 on 15 Jan 2018, could cross the Rs 300 mark. Accumulate.

>  IIFL Securities with 2500 offices across 500 cities continues to expand having acquired 1.1 million demat accounts from Karvy has notched 108% higher Q4 EPS of Rs 2.4 and FY21 EPS of Rs 7, which may rise to Rs 12+ in FY22. Buy for 40% gain.

>  Securities & Intelligence Services posted Q4 EPS of Rs 6.9 and FY21 EPS of Rs 25, which may lead to FY22 EPS of Rs 35 on the back of labour reforms, clients opting for technology and the economies opening post-Covid. Buy for 30% gain.

>  Anup Engineering from the Sanjay Lalbhai led Atul Group caters to wide range of process industries with its extensive product range and has notched Q4 EPS of Rs 27 and FY21 EPS of Rs 52.5, which could lead to FY22 EPS of Rs 80. The share may appreciate by over 50% going ahead. Buy.

>  Talbros Engineering, leading manufacturer of Axle Shafts for OEMs has four plants with an installed capacity of 30 lakh, has posted 166% higher FY21 EPS of Rs 21.2, which could lead to FY22 EPS of Rs 36. The share, which made a life-time high of Rs 824 on 11 Oct 2017, may touch Rs 500 in the medium term. Buy.

>  Mangalam Cement, a BK Birla group with 5 MMTPA capacity and 17.5 MW power plant and 13.65 MW of wind power has notched 135% higher Q4 EPS of Rs 13.6 and 44% higher FY21 EPS of Rs 44. A P/E of 10x can take the share price to Rs 440 in the medium term. Buy.

> Home furnishing industry is on a roll because of the huge demand from USA. Welspun India & Himatsingka Seide can be considered for investment after due study of the stocks.

>  Investing in the Tractor industry may be a contra call given its high growth and base last year. Buy cash rich Escorts Ltd. available at a mouth-watering price.

> TV ad revenue is on the rise. Sun TV Network may shine. Buy.

>  Tata Teleservice Maharashtra skyrocketed from Re 1 to Rs 40 with a change in strategy. Can something similar happen in NELCO, a Tata group co., which recently amalgamated Tata Net Services into itself? It is India’s leading VSAT provider.

>  Jaspal Bindra’s dream of owning a bank finally comes true with RBI granting a SFB licence to Centrum Capital along with unicorn Bharat Pe, which has lakhs of SME customers and Bindra has the experience of heading Standard Chartered Bank. Buy Centrum at every decline for multi-bagger gains.

>  Big Bull, Rakesh Jhunjhunwala, is extremely bullish on metal stocks and so is T.V. Narendran, MD of Tata Steel, who expects the cycle to last for another 10 years. As steel prices have run up fast, Indian Metals & Ferro Alloys has gone in for expansion. The stock trades cheap at a P/E multiple of 5x and can easily double.

>  TVS Srichakra Tyres from the House of TVS enjoys over 50% market share in the 2-wheeler space and plans to expand. The stock trades cheap at 10x forward earnings while all other TVS group companies trade at a premium between 20x to 30x. A bargain buy!

>  Government’s FAME (II) policy raising the subsidy by 50% per KWh will accelerate the sale of electric two-wheelers. Ampere Vehicles, a subsidiary of Greaves Cotton, will gain big. Technically, the stock has given a multi-year breakout of 4 years. Buy for a target of Rs 260.

>  Aditya Birla Fashion Retail is well-positioned with brands like Forever 21, Allen Solly, Van Heusen and with Jaypore, Ralph Lauren, Ted Baker etc. as the luxury brands. Added to the F & O segment gives this stock the necessary trigger to play the value unlocking theme. Buy for a target of Rs. 300.

>  Summit Securities, the holding company of the Harsh Goenka group comprising Ceat, Zensar Tech, KEC Int’l etc. once valued at Rs 5300 cr. + Rs 200 cr. in mutual funds is trading @ 88% discount to its NAV – lower than 50-75% discount of other groups. Buy at Rs 615 for a target of Rs 900.

>  PharmEasy acquires 66.1% of Thyrocare for Rs.4546 crore @ Rs 1300/share.

>  UFO Moviez India is India’s largest in-cinema advertising platform that reaches almost 200 crore viewers annually through 3,558 screens across 1,201 cities. Two years back, it was traded at Rs 600 level but is now at Rs 94. As businesses open up, it will bounce back in coming quarters. Ace investor, Vallabh Bhanshali, holds 1.62% stake in the company. Buy for 2x returns.

>  Aro Granite has notched 489% higher Q4 profit and has a book value of Rs120 double the CMP of Rs 60. Its new plant in Rajasthan commissioned in FY21 will help post stronger numbers. Buy for a decent gains in the short to medium term.

>  Samkrg Pistons, the leader in piston & rings, has achieved 149% higher Q4 EPS of Rs 7.03, which could lead to FY22 EPS of Rs 25 on the robust prospects of the auto sector. Grab it before it jumps up again. Available cum 50% dividend.

>  Alphageo is the largest onshore integrated seismic service provider in the private sector. It posted FY21 PAT of Rs 16.66 cr. against loss of 10.42 cr.in FY20 and declared 80% dividend. Traded in four figures in 2017, it is now at Rs 296. Rising demand for crude augurs well this co. Add.

>  Panasonic Energy listed on the BSE announced 228% higher FY21 profit and doubled the dividend to 80%. The share is available at an attractive price around Rs 251 cum 80% dividend. Buy it for multi-bagger returns in medium to long term.

>  Gujarat Apollo Industries is attractive at Rs 255 for a target of Rs 330 in three months. Maintain stop loss at Rs 230.

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