Weekly ‘MONEY TIMES TALK’
- EP News Service
- Oct 11, 2021
We are excited to bring to you a weekly column ‘MONEY TIMES TALK’ a very popular round-up of stocks/equity markets (BSE / NSE) live news and updates and subtle recommendations from Money Times.
✓ Analysts expect that the rising gas price to boost the profitability of Reliance, ONGC and OIL. Add them for gains over the year.
✓ The Indian realty market shows signs of rapid recovery. Add Sunteck Realty, which has launched a megaproject.
✓ A veteran marketman recommends buying Andhra Petrochemicals, BDH Industries, Bank of Baroda, Duncan Engineering, Fluidomat, Grauer & Weil, LKP Securities, Rana Sugars and Steel City Securities (NSE only).
✓ They say a rising tide lifts all boats. Penny stocks are rising without fundamentals. Avoid such shares if you don’t want to sink!
✓ APL Apollo Tubes to gain from the surge in the infrastructure and construction boom. It has a strong distribution network, high capacity and latest technology. Add.
✓ Ratnamani Metals has received orders worth Rs. 145 cr. for stainless steel and carbon steel pipes. Even at Rs. 2200 this share is a good buy.
✓ Allied Digital Services bags a Rs. 165 cr., 5-year contract from a global company to manage and transform its IT infrastructure and workplace enterprise services. Positive for the Company.
✓ HFCL has bagged a Rs. 288 cr. order from Railtel Corpn. for setting up a secured optical packet for the network for the Defence forces. Company to soon declare Q2 results with big announcements. Add now or repent later.
✓ Automotive components major, Sansera Engineering still trades around its issue price of Rs. 750. It has assured niche business from leading groups. An excellent share to add.
✓ Piramal Enterprises to demerge its pharmaceutical business and simplify its corporate structure. This could be a wealth creation opportunity for investors too. Add.
✓ NTPC has signed an MOU with Électricité de France S.A. to explore potential power project development opportunities in the Gulf, Asia, Europe and Africa. Positive for NTPC. Add.
✓ A strong demand for its newly launched XUV 700 SUV is pushing up volumes and price of the M&M share. Add.
✓ Ramkrishna Forgings has inked an MOU with US based technology partner to develop EV components. At current rates of around Rs. 1190, the share is still a good buy.
✓ The stock price of Indian Oil is rising on the back of rising fuel prices and proposed EV charging stations. Add.
✓ Analysts aver that concern over steel prices being under pressure is overdone and steel stocks can surge again. SAIL and NMDC are good shares to buy.
✓ Indiabulls Housing witnessed heavy buying on reports that big hands wanting to buy out the Company at heavy premium to market prices. Add at every decline.
✓ The global shortage of coal will lead to inflation but positive for Coal India. This Navratna share must be bought immediately.
✓ Some oil refineries plan to foray into Green Hydrogen. BPCL and HPCL can be big beneficiaries. Add.
✓ Led by strong recovery in demand, BMW posted 46% jump in sales so far. Force Motors makes most of the components and engines for this car and may report bumper profits. Buy.
✓ Motherson Sumi is set to acquire a majority stake in CIM Tools Pvt. Ltd. to enter the aerospace arena and in line with its Vision 2025. Buy with long term perspective.
✓ Cadilla has received tentative approvals from USFDA for its acne treatment cream. A positive for the Company.
✓ Maharashtra Seamless, the largest manufacturer of Seamless Steel Pipes and Tubes has garnered 400% higher EPS of Rs 28.6, which could lead to an EPS of above Rs 75 in FY22 against FY21 EPS of Rs 30. The share can fetch a gain of about 30% in the medium to short term.
✓ Suryaaamba Spinning Mills with its wide range from 100% polyester and viscose spun yarns as well as blended synthetic yarns, has clocked Q1FY22 EPS of Rs 8.9 v/s minus Rs 3.3 inQ1FY21 and FY21 EPS of Rs 14.5. Its FY22 EPS is likely to be Rs 28 and the share may fetch a gain of 75%. Buy.
✓ Uflex Ltd, the market leader in flexible packaging and undergoing various expansions, has notched 34% higher Q1FY22 EPS of Rs 36.6 against FY21 EPS of Rs 117. With a likely FY22 EPS of Rs 145, the share could double from the current level in the medium term. Buy.
✓ For over 50 years, Dhunseri Tea has been a progressive, quality-focused Indian tea producer of Flavored tea, Red tea, Herbal tea, Green Tea, Orthodox Tea, Lal Ghora, and Black Ghora tea. It has notched 74% higher Q1 EPS of Rs 24.8 which could lead to FY22 EPS of Rs 60 against FY21 EPS of Rs 40. The share trading at a forward P\E of just 4.7x can advance by 40% to Rs 400 mark. Accumulate.
✓ Mazagon Dock Shipbuilders is engaged in constructing and repairing warships, submarines, cargo ships, multipurpose support vessels, barges and border outposts, tugs, dredgers, water tankers, etc. has notched 27% higher FY21 EPS of 30.2 and may post FY22 EPS of Rs 36. The share available at a forward P\E of 6.8x could touch Rs 400 in the medium term. Accumulate.
✓ Apar Industries into Conductors, Cables, Speciality Oils and Lubricants has notched Q1 EPS of Rs
16.3 v/s minus Rs 6 (YoY) which could take FY22 EPS to Rs 65+ as against FY21 EPS of Rs.42. A reasonable P\E of 14.5x can take its share price to Rs 942 in the medium term. Buy.
✓ Savita Oil Technologies, a pioneer in petroleum specialty products in India, evolved to become a well-diversified with a global reach, marketing its products in over 75 countries worldwide has reported 631% higher Q1EPS of Rs 55.6 which would take FY22 EPS to Rs 230 against Rs 159 in FY21. The share is expected to fetch a decent gain of 50%. Buy.
✓ Mangalam Cement having 5 MMTPA capacity has notched 134% higher Q1 EPS of Rs 13.6 and 44% higher FY21 EPS of Rs 40.8. Based on the current going and strong demand of cement, MCL is expected to post FY22 EPS of Rs 50. A reasonable P\E of 10x can take its share price to Rs 408 in the medium term and Rs 500 thereafter. Buy.
✓ 90 years old Rajapalayam Mills, a Ramco Cement group textile major produces & exports a wide range of yarns. It holds 14% stake in Ramco Cements, 9.7% in Ramco Industries and 2.4% in Ramco Systems valued at Rs 3,650 cr. It has garnered 598% higher Q1 EPS of Rs 41.4 which could lead to FY22 EPS of Rs 145 against FY21 EPS of Rs 117.6. A P\E of 12x could take its share price to Rs 1740 in the medium term. Must for every portfolio.
✓ Meghmani Organics, manufacturer of pigments and agrochemicals and undergoing an expansion of Rs 310 cr., has notched Q1 EPS of Rs 2.7, which could lead to FY22 EPS of Rs 12+. The management is targeting sales of Rs 3, 000 cr. in the next two years. The strong cash flow will make it debt-free this year and it may announce further capex. The share could gain 30%. Buy.
✓ Cochin Shipyard is yet to participate in the ongoing bull-run. It is a frontrunner in Indian shipbuilding & ship repairs and has emerged as the lowest bidder in the 6-vessel tender from the Indian Navy for the next generation missile vessels worth about Rs 10,000 cr. The formal contract signing is expected shortly. Buy for the long term.
✓ Rain Industries one of the largest producers of calcined petroleum coke and cement, tar distillation, specialty chemicals with manufacturing facilities in 8 countries across 3 continents has notched 90% higher Q2CY21 EPS of Rs 7 and H1CY21 EPS of Rs 13.1, which could lead to CY21 EPS of Rs 30. The share could touch the Rs 300 mark.
✓ The stock price of BPL Ltd. has skyrocketed from Rs.30 odd level to Rs.160+ in a month on news of Reliance acquiring it. MIRC Electronics, owner of the ONIDA brand of TVs, ACs, Mircowaves, Washing Machines, Dish Washer etc. trades cheap at a mktcap of less than Rs 500cr.against FY21 revenue of Rs.700cr and can be a good takeover candidate.
✓ Tractors India in which Krupp of Germany holds 20% stake is looking to delist the co. from the bourses. According to sources in the know, the delisting may happen at 100% premium to the current market price. Buy for immediate gains.
✓ GFL Ltd., the holding co. of Inox Leisure, parent co. of unlisted Inox Infrastructure and Inox Renewables Ltd. trades cheap at a mktcap of less than Rs.1000cr whereas its holding alone in Inox Leisure is valued upwards of Rs.2000cr+. Trigger for the stock price will be the listing of Inox Infrastructure and Renewables going forward. Accumulate for a good 50% appreciation from the current levels.
✓ We all know how the fortunes of Hind ZInc changed after its takeover by Anil Agarwal led Vendanta. Agarwal is keen to buy out Hindustan Copper as well. If the deal materializes, it would be a blind buy for multi-bagger returns.
✓ Dredging Corporation and Abu Dhabi govt. backed National Marine are likely to sign a JV for technology transfer and working together on projects. A big boost for the co. Buy the stock at every decline.
✓ Nelco recommended in this column many times from Rs.350-400 levels has reached Rs.900. It is safe to book profits and enter Tata Teleservices (Maharashtra) Ltd.. With a risk of 20%, this stock can give 100% appreciation from the current level.
✓ Chalet Hotels - which manages the Marriott, Renaissance, Westin, Novotel brands of hotels and the Inorbit Malls is seeing unprecedented demand. It came out with an IPO at Rs.400 trades at Rs.240 odd level. Its valuation seems reasonable compared to its peers. It can give a good 50% appreciation from the current level.
✓ S Chand Limited has launched an app called ‘Learnflix’ that competes directly with Byju's, which sells for Rs.20000 directly to customers whereas S.Chand sells it to schools at Rs.2000 and it has tie-ups with around 40000s schools. Byju's valuation is at 1lakh cr+ whereas SChand trades at Rs.500cr odd valuation. If it succeeds, sky is the limit for the stock. A Screaming Buy!
✓ Sandur Manganes & Iron Ore is the largest private miner of manganese and recently started its 1MMTPA steel plant along with 30MW Waste heat recovery boilers and 24 MVA ferro furnace. The stock trades at less than 4 times to FY22E earnings. Buy for 50% returns in 1 year
✓ BNA Ltd operates 8 tea gardens in Assam and posts strong Q2 results every year. The stock trades at 4 times to FY22E earnings and its mkt cap is lower than the value of its holdings value in BA Packaging. Buy for 30% quick gains.
✓ JP Power, engaged in generation of power, cement grinding, captive coal mining, and transmission of power has ROCE of 7.18%. Company`s PAT has grown at a CAGR of 22.03% over last 5 years. Stock trades at just 0.55 times its book value. Expect this counter to be 5x in the medium term.
✓ Bank of Baroda has a vast network across India. It has many subsidiaries & JVs and has a Capital Adequacy Ratio of 12.93% & CASA ratio of 37.93%. It is a huge beneficiary of Air India’s takeover by the Tatas as it had the highest exposure to it and will benefit from the privatization drive. Expect this stock to double.
✓ Coal shortage and the energy crisis offers unprecedented opportunity to Gujarat Industries Power Company which has captive coal mines. Investors can look forward to the stock achieving a target price of its book value Rs 173.88 in the long term.
✓ Apollo Micro Systems posted FY21 turnover of Rs 203.72 cr on its equity of Rs 20.76 cr. against Paras Defence and Space Tech’s turnover of Rs 144.51 cr. on an equity of Rs 206.63 cr. in the same period. Recently, it won two defence orders worth Rs 64.92 cr. It is the best buy in the defence sector with 150% profit potential.
✓ Punjab National Bank has decided to divest its stake of Rs 218.50 cr in the Canara Bank promoted insurance venture CHOICE. Expected inflow at a conservative estimate is Rs 15,295 crore. A great buy.
✓ Andhra Petrochemicals is doing well and will improve further as the demand for its products is high and the anti-dumping duty imposed on chemical imports. Its Q1 net profit skyrocketed to Rs.62.74 cr. from net loss of Rs.1.94 cr. in Q1FY21 and it posted FY21 EPS of Rs.7.38. Technically, if it crosses its 52 week high of Rs 197 with volumes it can rise to 225-250+ in the medium to long term.
✓ BDH Industries, a regular dividend paying pharma company, exports therapeutic formulations to over 60 countries. The stock is technically & fundamentally strong and available at an attractive PE of 12.5x. Buy for decent gains in the short to medium term. Technically, if it crosses its 52 week high Rs.180 with volumes, it can rise to 200+
✓ Duncan Engineering, manufactures industrial pneumatics and off highway tyre valves and accessories and is a subsidiary of Oriental Carbon and Chemicals belonging to the JP Goenka group. On its very small equity of Rs.3.69 cr., promoter holding is 74%. Stock is available at PE of 8x. Buy it for good returns.
✓ Debt-free, cash rich Fluidomat Ltd. manufactures couplings. For Q1, its net profit soared 738%. Stock is available at very attractive valuations. Buy for good returns in the short to medium term. If it crosses its 52 week high of Rs.169 with volumes, it can go up to Rs. 200+.
✓ Grauer & Weil is debt-free with over Rs.250 cr. cash in books and owns the Growel Mall at Kandivali. Yet its market cap is only Rs1500 cr. with very good return ratios & working capital cycle. Its Q1 net profit Rs.19.50 cr. v/s Rs.1.11 cr. in Q1FY21 was a blockbuster jump of 1657% in profit. Its equity of Rs.22.67 cr. is backed by huge reserves of Rs.491.36 cr. Buy for good return in medium to long term.
✓ Mumbai based LKP Securities posted 172% higher Q1 net profit of Rs.3.77 cr. v/s Rs1.36 cr. for Q1FY21. The boom in the stock market augurs well for its future. If it crosses its 52 week high Rs.17.70 with volumes, it may rise to Rs.20-23 in the short to medium term.
Disclaimer: The views and investment tips expressed by investment experts on Money Times 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.