Buy, Hold, Sell – Finally, It’s Up To You
Market tips for the week – By Arrangement with MONEY TIMES
MUMBAI, May 23 (The CONNECT) – Investment tips for the week.
• Escorts posted over two-fold jump in Q4 NP from Rs.128 cr. to Rs.285.4 cr. (YoY) on strong sale of tractors and construction equipment and FY21 EPS stood at Rs. 92.15, which makes it an excellent buy.
• Cipla reported a 73% jump in Q4 NP to Rs. 412 cr. on a revenue of Rs. 4606 cr. It is reportedly making drugs to treat the deadly Black fungus. Add.
• Monte Carlo Fashions had suspended operations due to Covid but has now resumed sales. Its FY21 EPS was good at Rs. 31.98 and a dividend of Rs. 15 has been declared. Add in small quantities.
• An Ahmedabad based analyst recommends to buy BCL Industries Ltd., Central Bank of India, Cochin Minreals Rutile Ltd., Dhunseri Ventures Ltd., Denis Chem Lab, De Nora India Ltd., Hindustan Tin Works Ltd., Ind Swift Laboratories Ltd., Indo Amines Ltd., NCC Ltd., Panasonic Carbon India Co. Ltd., Religare Enterprises and Wockhardt.
• Aarti Industries, which had announced a bonus issue, is one of the most valued companies in the specialty chemicals segment. It is reportedly faring extremely well. This investor friendly company must be added.
• Happiest Minds posted a strong set of Q4FY21 numbers but the share price did not move. Use this opportunity to add before it shoots up.
• Linear Alkylbenzene prices are on the rise. The new capacity created by Rama Phosphate will add to its growth and profitability. Expected FY21 EPS will be Rs. 20+. Buy.
• HCL Tech plans to hire 1000 tech professionals in UK to support its clients based there. This signals a rising business trend. Add.
• Natco has signed agreement with Eli Lilly for its anti-Covid drug in India. Positive for Natco. Add.
• Dr. Reddy’s will soon make an anti-Covid drug that will reduce oxygen dependency in patients and provide the Company a big business opportunity. Add.
• Gland Pharma’s Q4 and FY21 results suggest rising profits. The share looks underpriced and can be added for the long term.
• Canara Bank’s Q4FY21 NP of Rs. 1010 cr. against Q4FY20 loss of Rs. 6567 cr. on the back of lower provisions and raising funds via QIP augurs well. A good long term buy at CMP.
• Astral Ltd. posted excellent Q4 results as its EPS shot up to Rs. 8.69 from Rs. 2.54 last year. FY21 EPS was a handsome Rs. 20.13 v/s Rs. 12.34 in FY20. The share must be added.
• Indiabulls Housing’s Q4 profit has doubled to Rs. 276 cr. from Rs. 137 cr. YoY leading to an EPS of Rs. 6.20 v/s Rs. 3.27. An interim dividend of Rs. 9 per share of Rs. 2 has been declared. The share is an excellent investment. Buy.
• The recent cyclone Tauktae has blown off the rooftops of many shanties and is a boon in disguise for Sahyadri Industries maker of asbestos sheets and other building materials. Its volumes and share price are already rising. Buy.
• Relaxo Footwear’s Q4 net profit soared 97% YoY to Rs. 102 cr. This company may be added as a long term portfolio pick.
• Unichem Labs has received USFDA approval for its generic anti-depressant amitriptyline Hcl tablets. Positive for the Company.
• Indian Oil declared its highest ever profit for FY21 with an EPS Rs. 23.07 v/s minus EPS of Rs. 0.97 in FY20 on the back of higher inventory valuations. It declared a final dividend of Rs. 1.50 in addition to an interim of Rs. 10.50 paid earlier. Add.
• J.K. Tyres came up to market expectations as FY21 EPS doubled to Rs. 12.97 v/s Rs. 6.12 in FY20. Add.
• Cosmo Films presented stunning FY21 results with net profit at Rs. 237 cr. The EPS stood at Rs. 125.7 v/s Rs. 59.2 in FY20. The share is also a bonus candidate. Buy.
• JK Lakshmi Cement numbers indicate that the cement boom has begun. Its FY21 EPS of Rs. 34.45 v/s Rs. 21.08 in FY20 on the back of government’s push for infrastructure merits a buy.
• Bank of India recommended last week is up 10%
• Indiabulls Real-Estate recommended last week is up 20%
• Justdial has a new CEO, Prasun Kumar, formerly with Magicbricks. High volume buying seen in the stock as Jdmart may be an Indiamart in the making. Buy for long term target of Rs. 2000 and medium-term target of Rs.1400.
• Shalimar Paints is very well placed technically and has given a multi-year breakout. Paint industry is faring well and Shalimar came out with good numbers. Buy for a target of Rs.150.
• JaiCorp is breaking out from long consolidation with good volumes. Buy for a target of Rs.180.
• Can Shemaroo do wonders? The stock is available at a marketcap of just Rs 250 odd cr. v/s Saregama with a marketcap of Rs.4000cr. It may well become an acquisition target. Buy on every decline for multi-bagger gains.
• RPSG Ventures, holding co. of FirstSource, has a marketcap of just Rs.1000cr v/s FirstSource’s mktcap of Rs.10000cr. This dark horse can give multifold returns.
• GOOGLE has rolled out its news showcase and partnered with a number of publishers including HT Media, which trades cheap at Rs.22 and can give a quick 50% returns.
• HSIL, leading manufacturer of sanitaryware, plastic pipes and fittings also manufactures glass containers & PET bottles. It is reported to have secured large orders to manufacture glass vials for Covid-19 vaccines. Buy at every decline.
• 3i Infotech has applied to the NCLT to reduce its equity capital. According to punters, what happened with Subex can happen with the stock of 3i Infotech!
• SV Global Mill’s first land Development plan on 4.5 acres in Bangalore may end with Rs.150cr. profit after 2 yrs. It also has 25 acres prime land in Bangalore and Chennai worth Rs1000cr. Buy with a target of Rs100 in 1 year and for multi-bagger returns later.
• DCW Ltd., sole producer of C-PVC, benefits most by the anti-Dumping Duty on its subsidized import, Kotak Securities has invested Rs. 410cr. in co.’s NCD & OCD. The stock may touch Rs.60.
• Dish TV India engaged in Direct to Home television and Teleport services has launched DishSMART Hub to access OTT apps. With RoCE of 10.2% and Mcap of Rs. 2375cr., the stock trades at PE of just 3.44x against industry average of 23.6x. The stock may double.
• BCL Industries into solvent extraction, edible oil, distillation, ethanol and real estate may post the highest ever FY21 going by peer comparisons. Buy for 50% gain.
• Packaging cos. posted excellent Q4FY21 numbers. Hindustan Tin Works may also post mind blowing numbers. With a book value of Rs. 150 and insurance cos. holding 9.83%, expect decent returns in the short term
• Ind Swift Laboratories, the largest standalone producer of 32 APIs across 18 therapeutic segments sold in 70+ countries. It has 11 products in pipeline with 4 set to commercialize in FY22. lt may be a multi-bagger of 2022. Buy.
• GEE, formerly General Electrodes & Equipment, into welding products, copper and copper alloys has notched 30% higher Q3 EPS of Rs 1.9 (FV Rs 2) and 55% higher 9MFY21 EPS of Rs 3.4, which could lead to an 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 70 on a reasonable P/E of 12.5x.
• NDTV, an independent broadcasting network known as NDTV India and NDTV 24×7 has posted 242% higher Q4 EPS of Rs 3.2 (FV Rs 4) and 189% higher FY21 EPS of Rs. 11. A reasonable P/E of 10x can take its share price to Rs 110 in the medium term.
• Pitti Engineering, the complete engineering solutions provider has expanded capacity to 46,000 MT for sheet metal components for engineering products and notched 77% higher Q3 EPS of Rs. 2.3 and may post FY21 EPS of Rs 10. A reasonable P/E of 8x can take its share price to Rs 80. Buy.
• Universal Starch-Chem producing liquid glucose and dextrose products for the Food, Pharmaceutical, Textile, Paper & Adhesive industries has notched Q3FY21 EPS of Rs 5.7 and 9MFY21 EPS of Rs 8.6 on its small equity of Rs 4.6 cr., which could lead to FY21 EPS of Rs 15. The share can gain 50%.
• Trigyn Technologies contracted by New York Power Authority (NYPA) for comprehensive services including Offshore Development and Maintenance Solution & Services to the IT industry has posted 288% higher Q4 EPS of Rs 4 and 24% higher FY21 EPS of Rs 20.1. A conservative P/E of 7.5x can take its share price to Rs 150 in the medium term. Buy.
• Apar Industries, which makes conductors, Cables, Speciality Oil and Lubricants and exports to 100 countries has notched 58% higher Q3 EPS of Rs 21.6 and may post FY21 EPS of Rs 48. A reasonable P/E of 15x can take its share price to Rs 720 in the medium term. Buy.
• Integrated steel manufacturer, Sarda Energy, has approved the expansion of ferroalloys of 36 MVA (50,000 TPA) and notched 532% higher Q4 EPS of Rs 38.7 and 197% higher FY21 EPS of Rs 104. Buy for 50% gain.
• Manaksia Ltd. is into sponge iron, value added steel products for automobile and construction, pilfer proof (PP) closures used for liquor, FMCG and pharmaceutical sectors and aluminum rolled products in coil & sheet forms has notched 176% higher Q3 EPS of Rs 4 and 9MFY21 EPS of Rs 9.3 and paid FY20 dividend of Rs 10.5 on its Rs 2 FV share or 525% is likely to notch FY21 EPS of Rs 15. The share may appreciate by 50% going forward. Buy.
• Vindhya Telelinks from the M.P. Birla Group is into cables and EPC business is the cheapest telecom share with a forward P/E of 4.8x on likely FY21 EPS of Rs 180 (9MFY21 EPS: Rs 130). A reasonable P/E of 10x can take its share price to Rs 1800 in the medium-to-long term. Buy.
• Jasch Industries into PU, PVC synthetic and PU resin products and machines for automotive upholstery, footwear, leather, technical garments, healthcare, etc. has expanded its PVC coated fabrics capacity and posted 119% higher Q3 EPS of Rs 3.5 and 111% higher 9MFY21EPS of Rs 5.7 and may post FY21 EPS of Rs 10 and Rs 14 in FY22. Buy for 40% appreciation.
• Century Enka from the BK Birla Group has approved capex of Rs.240 cr. to strengthen its position in the tyre reinforcement market by modernization of plant and augmenting capacity by ~30% and Rs.23 cr. for expanding the capacity of draw texturized yarn and mother yarn. Having posted Q4 EPS of Rs 22 and FY21 EPS of Rs 32, it is expected to notchFY22 EPS of Rs 50+ Buy for 40% gain.
