Bulls & Bears
Money Times Market Tips
✓ Chandni Textiles Engineering Industries has been allotted 5.5 acres industrial land in Malegaon
Textile Park for its technical textiles project.
✓ Tata Sons has acquired the controlling stake (43.35%) in Tejas Networks, a telecom equipment
maker, to help access 5G technology, the next generation communication system. Buy.
✓ Mahindra Finance suffered a loss of Rs. 1,528.76 cr. in Q1FY22 resulting in a negative EPS of Rs.
12.41. The Covid blues are taking a toll. Stay away for some time.
✓ A veteran marketman recommends to buy BDH Industries cum 30% dividend, Betex India,
Godavari Drugs, Mahindra Logistics, MNC Integra Engineering, Indian Sucrose, LP Rings,
Kesoram Industries, Lasa Supergenerics, Laurus Labs, Lithika Infra, MK Exim India, Nelcast,
Rubfila International, Sadbhav Engineering, SNL Bearings cum 45% dividend.
✓ Maruti Suzuki’s Q1 profit fell 62% sequentially due to rising input costs & planned shut downs
due to Covid-19 despit passing on a part of the rising cost to customers. It would be prudent to
stay away for some time.
✓ JSW Steel plans to raise $300mn in offshore loans, to fund expansion. The Company has big
expansion and capex plans of around Rs. 25115 cr. in the next three years. A nice share to add.
✓ The entire cement sector is in a state of boom. Deccan Cements is best placed to report bumper
earnings. Buy immediately for hefty gains in the next two quarters.
✓ Automobile giants are grappling with shortage of semiconductors. For the same reason, Tata
Motors reported a loss of Rs. 4450 cr. in the previous quarters. Buy Moschip which is doing well
and management has forecast better times.
✓ Ashok Leyland is expected to launch its first e-LCV in India by Dec 21. This share has become a
good long term buy.
✓ Coforge (erstwhile NIIT Technologies) posted excellent Q1 results with NP at Rs. 171.7 cr v/s Rs.
39.4 cr in Q4 and Rs. 121.7 cr in Q1FY21. The Company is placed to report better results in the
remaining part of the year. Add.
✓ Apcotex (an associate of Asian Paints) made a big turnaround and reported an NP of Rs. 21.86 cr.
in Q1 v/s a loss of Rs. 6.67 cr. last year. The share merits a buy.
✓ Godawari Power & Ispat’s Q1FY22 has already surpassed the entire profits of FY21. An EPS of
Rs. 123.42 in the first quarter itself makes this share a big buy.
✓ Packaging major Kanpur Plastipack presented its golden jubilee Q1 results with a bang. Income
up by 88% and NP rise of 127% and expected FY22 EPS at around Rs. 28 merits a buy.
✓ Pfizer’s Q1 results point to a Covid boost to its business. With NP at Rs. 200.06 cr., and Q1 EPS at
Rs. 43.69 v/s Rs. 108.77 for the whole year indicates that FY22 will be a bumper year for the
Company. Accumulate.
✓ Kotak Bank’s Q1 net soared 32% to Rs. 1642 cr, on higher income. Although NIM has risen from
Rs. 3724 cr to Rs. 3943 cr, the rising NPAs is a drag. Wait and watch.
✓ The Covid has taken its toll on PVR, which reported a loss of Rs. 219.5 cr in Q1 this year. This
multiplex chain cinema operator is likely to be impacted in the next few quarters too. Sell and stay
away.
✓ Garware Hi Tech Films posted a superior Q1, with profits rising to Rs. 35.83 cr. v/s Rs. 13.61 cr.
in Q120. The management is optimistic about the remaining period of this year. Add.
✓ The boom in the cement sector is showing. JK Lakshmi Cement came out with a healthy profit
figure of Rs. 136.17 cr (Rs. 50.63 cr in Q1FY20) The company is expected to outperform this year
too. A big Buy.
✓ LIC Housing Finance disappointed investors with its Q1 results which fell by 81% to Rs. 153 cr.
due to huge provisioning on account of defaults. Housing loans have the property as collateral
and in the long run, recoveries will ultimately pick up. Retain this share.
✓ EIH Ltd, the Oberoi hotels group, continued to post losses due to covid related issues. The position
is not likely to improve in the near term. Sell.
✓ Hawkins Cookers continued to post superlative working with Q1 profit of Rs. 17.13 cr. v/s Rs.
6.45 cr. in Q1FY21. The EPS was Rs. 32.39 v/s Rs. 12.19 in Q1FY21. The Company has declared an
interim dividend of Rs. 90. Keep accumulating.
✓ Union Bank profits rose three times in Q1 to Rs. 1181` cr. on the back of treasury gains and
doubling of non-interest income and a visible gain on recovery of written off accounts. At current
rates, this share may be added with a view of two years.
✓ Dwarikesh Sugar has shown a marked improvement in its Q1 profits and EPS has gone up from
Re. 0.96 to Rs. 1.44. The yearly EPS stood at Rs. 86. Rana sugars results are also expected soon.
Buy both these reasonably priced sugar companies.
✓ After Open Offer, the control and management of Majesco Ltd. is now with the Aurum group.
Given the real estate and technology experience of its new management, Majesco will create a
digital and technology ecosystem focused on the complete value chain of Real Estate.
✓ Pondy Oxide, manufacturer of Lead and its alloys used for automotive and industrial uses has
notched 322% higher Q1 EPS of Rs 14.8 and is expected to post Fy22 EPS of about Rs 45+. This
share, which made an all-time high of Rs 779 on 24 Oct 2017, could fetch a decent gain of 50%.
Buy.
✓ With two decades of experience in telecom, BFSI, manufacturing, energy & utilities verticals,
Intense Technologies, offers dynamic digital platforms to Fortune 500 clients. It has notched Q1
EPS of Rs 5.3 on its small equity of Rs 4.5 cr., which may lead to FY22 EPS of Rs 15. Buy for 30%
gain.
✓ Eldeco Housing, a leader for 30 years in Lucknow’s housing market- UP’s capital posted 15%
higher Q4FY21 EPS of Rs 70 and 38% higher FY21 EPS of Rs 275 on its small equity capital of Rs
2 cr. The share is expected to gain of 30% from the current level. Accumulate.
✓ IIFL Securities, a key player in the retail and institutional segments with 2500 offices in 500 cities
continues to expand having acquired 11 lakh demat accounts from Karvy, has notched 69% higher
Q1 EPS of Rs 2.2 against FY21 EPS of Rs 7, which may rise to FY22 EPS of Rs 12. Buy for 30% gain.
✓ INEOS Styrolution, a 75% MNC, is a leading global styrenics supplier focused on styrene
monomer, polystyrene, ABS standard and styrenic specialties with world-class production
facilities and products in automotive, electronics, packaging, household, construction, healthcare,
toys & sports, etc. is expected to produce strong Q1FY22 results. Buy for 30% gain.
✓ GHCL, manufacturer of soda ash with 25% market share and into Home textiles, has notched 35%
higher Q4FY21 EPS of Rs 11.7 and FY21 EPS of Rs 34.3. Expansion of its soda ash production &
demerger of the textile and chemical biz is expected to fetch a decent gain of 30% in the medium
term.
✓ Vindhya Telelinks, an M.P. Birla Group co., which is into cable and EPC business of telecom, has
notched 203% higher Q4 EPS of Rs 98 and 14% higher FY21 EPS of Rs 228, is expected to turn
debt-free with strong cash flows within two years. A P/E of 10x could take its share price to Rs
2280 in the medium-to-long term. Add.
✓ NDTV, an independent broadcasting network, has posted 241% higher Q4 EPS of Rs 4.1 (FV Rs 4)
and 189% higher FY21 EPS of Rs 11, which may lead to FY22 EPS of Rs 15+. The share can cross
the Rs 120 mark in the medium term. Add.
✓ Mallcom (India) Ltd., a leading Personal Protective Equipment (PPE) supplier of helmets, face
masks, garments, rainwear, leather gloves, nitrile gloves, and shoes, to 50 countries has notched
156% higher Q4 EPS of Rs 16.7 and 59% higher FY21 EPS of Rs 45.3, which could lead to FY22
EPS of Rs 60 and take its share price to Rs 900 in the medium term.
✓ Cochin Shipyard, the frontrunner in Indian shipbuilding & ship repairs and also serves the
Defence sector, has posted 65% higher Q4 EPS of Rs 17.2 and FY21 EPS of Rs 45.5, which could
lead to FY22 EPS of Rs 55. The share trading at a forward P/E of 6.8x could touch Rs 550 in the
medium term. Buy.
✓ Mazagon Dock Shipbuilders is a leading defence PSU engaged in the construction and repair of
warships submarines, cargo ships, multipurpose support vessels, barges, tugs, dredgers, water
tankers, etc. has notched 217% higher Q4 EPS of Rs 12.9 and 27% higher FY21 EPS of Rs 30.2 and
may post FY22 EPS of Rs 40. The share trades at a forward P/E of 6.5x could touch Rs 400 in the
medium term. Accumulate.
✓ NSE listed Jullunder Motor Agency with 7 regional offices, 77 branches and 75,000 dealers
engaged in distribution of auto spare parts and petroleum products has notched 136% higher Q4
EPS of Rs 4.2 and 63% higher FY21 EPS of Rs 10 on its small equity of Rs 4.6 cr. is expected to post
FY22 EPS of Rs 13. The share may fetch a gain of 40%. Buy.
✓ Generic Pharmasec has upgraded Point of Care Diagnostics by installing Abbot Point of Care 1-
Stat Blood Analysers at 4 Relince group hospitals. In Q4FY21, its net profit grew 446% to Rs 2.51
cr. and has the potential to become the next Morepen Labs and a multi-bagger.
✓ Money Times identified Digispice Technologies around Rs 30. Now it trades around Rs73 and
can double from here before loss making PayTM’s Rs.16,600 cr. IPO is listed. It posted FY21 PAT
of Rs 11 cr. and is available at market cap of just Rs.1667 cr.
✓ Nelcast is the largest jobbing foundry manufacturing Ductile & Grey Iron Castings and the largest
producer of SG iron castings. It posted the highest turnover in last 9 quarters and highest
operating profit in last 10 quarters. In July 21, the stock witnessed the highest volume in the last
decade on a monthly basis. Buy for quick gains.
✓ Laurus Labs a fully integrated pharma and biotechnology company with leadership in generic
APIs and focus on anti-retroviral, Hepatitis C, and oncology drugs has notched 40% higher Q1FY22
EPS of Rs.4.50. The share may rise to Rs 750 in the short term. Accumulate.
✓ BDH Industries, a pharma company, quoting cum 30% dividend may be re-rated for its prime
land in Kandivali East adjoining Big Bazar. It exports over 60 countries. The stock is technically &
fundamentally strong and available at an attractive PE of 13x. Buy for decent gains in short to
medium term.
✓ Integra Engineering, a sheet metal fabricator promoted by a Swiss MNC, makes products for the
railways and the power sector. Big growth has begun as Q1FY22 is very impressive and can be a
good bet for infra play. Equity is very small only Rs.3.43 cr. Buy for good returns in the medium to
long term.
✓ Cash rich & debt-free Hariyana Ship breakers is likely to gain attraction as it is a combination of
the booming ship breaking steel & real estate. It posted turnaround results and is now available
at PE of just 8x with P/B ratio of O.58, book value of Rs.223. Multi-bagger potential.
✓ Dwarikesh Sugar is set to double ethanol production by 2024. Morarka Finance will be the
biggest beneficiary being the holding company.
✓ Packaging companies like Cosmo Films, Uflex, Polyplex continue to gain traction due to growing
demand for packaged goods
✓ Gujarat State Petronet available at PE of 10x is expected to fare better this year and turn debtfree
✓ Rama Newsprint’s mineral water ‘CLEAR’ is available in over 60 hospitals and several retail
chains. It has also tied-up with various hotels and leading airlines such as Air India, Go Air, etc.
This share with a book value of Rs.27 is available below 25 level and can double from hereon.
✓ 70% banks in India and Middle East use software and AMC products of Aurionpro Solutions. It
also has strategic partnership with a UK based MNC to set up data centres in India. The stock at a
P/E of 10x may be a dark horse in the midcap IT software space.
✓ Apar Industries, producer of the widest range of cables and third largest global manufacturer
of transformer oils, came out with blockbuster quarterly results with an EPS of Rs.15. Buy at every
decline for at least 50% gain in the near to medium term.
✓ Firstsource Solutions has corrected nearly 20% from its recent highs. A further fall of 10 % near
Rs 175 level will be a good opportunity for long term investors to get in.
✓ Allied Digital Services’ latest IT service management & digital services management platformADiTaaS, is now globally certified by PinkVERIFY. It is also a standard consulting partner for
Amazon Web Services. The company is also expecting to win big orders. Buy for a target of Rs. 95.
✓ Zensar Technologies’ new CEO, Ajay Bhutoria, has brought back growth after seven quarters of
muted earnings. It has also rebranded its logo. Buy for target of Rs.560.
✓ After a long consolidation, Edelweiss Financial Services has started its move upwards with huge
volumes. The stock is available at 1x book value and is trading cheap compared to its peers. Backed
by marquee investors, buy for a target of Rs.140.
✓ Summit Securities has 32% stake in Ceat Ltd., 20% in KEC International, 20% in Zensar and
Mutual Fund investments worth Rs. 6000 cr. It is debt-free The stock trades @ 87% discount to
its NAV, which is the highest in holding companies that will shoot up to Rs.1350 @ 75% level in a
year.
