Exclussive Tips From Money Times
A Money Times special for BizNewsConnect readers
✓ Hi-tech Gears posted strong FY21 turnaround. From a loss of Rs. 2.28 cr. with negative EPS of Rs.
2.75, it posted profits of Rs. 44.10 cr. with an EPS of Rs. 15.34 and declared a dividend of Rs. 2. At
around Rs. 292, this share may be added.
✓ IRFC reported Q4FY21 EPS of Rs. 1.23 v/s Re. 0.62 in the corresponding quarter last year. For full
year too the EPS stood at Rs. 3.68 v/s Rs. 3.02 previous year. Going by current workings, it looks
likely that current years EPS may be around Rs. 5/-. A good long term buy.
✓ Warren Tea is on a comeback trail with FY21 profit zooming to Rs. 32.45 cr. v/s a loss of Rs. 14.67
cr. Its EPS at Rs. 25.52 calls for a better share price. Buy.
✓ A Gujarat based analyst recommends to buy Acknit cum 15% dividend, BCPL Railway Infra cum
dividend, Indian Acrylics, IOL Chemicals, JP Associates, JP Power, Jindal Stainless Steel,
Mahindra EPC, MK Exim, Pee Cee Cosma Sope cum 30% dividend, Ruby Mills and Vascon
Engineers.
✓ Dixon Technologies, leading electronic goods contract manufacturer, has received approval for
IT hardware manufacturing under the govt’s. PLI scheme. A big boost for the Company. Add.
✓ Godrej Consumer’s Q1FY22 witnessed strong business across all segments. The share may be
bought on expectations of better results.
✓ NMDC has received a LOI for Bailadila iron ore mine spanning 646.596 hectares in the Dantewada
Forest Division, Chhattisgarh. A big positive. Accumulate.
✓ Morepen Laboratories will soon start production of Sputnik Vaccine in India. This business
opportunity will improve its profitability. Accumulate.
✓ Redington India, distributor of IT, mobile and allied electronic products, has approved 1:1 bonus
and fixed as 20 August 21 as the record date and a dividend of Rs. 11.60 has also been announced.
Share price can rise substantially. Add.
✓ Equitas Small Finance Bank posted 15% rise YoY in Q1 FY22 lending to Rs. 17,839cr. With a rise
in CASA ratio, the bank posted a 162.4% jump in NP to Rs. 112.87 cr. Add.
✓ Semiconductor shortage can hamper sales of automobiles. Stay away from Tata Motors.
✓ Paper industry is facing rising demand and the anti-China stance is creating a further shortage. It
would be prudent to buy J.K.Paper and Star Paper.
✓ With double digit volume rise in FMGC goods, both Marico and Godrej Consumer Products can
post higher profitability. Add.
✓ After touching a price of Rs. 110, Reliance Infra has deeply corrected. Investors may start adding
again around Rs. 75.
✓ Bombay Super Hybrid Seeds posted excellent results since last few quarters. After its IPO in
2018 around Rs. 60 per share, the company has already made two bonus issues. Buy.
✓ Lincoln Pharma has entered the fast track. The Company is now debt free and has aggressive
expansion programs. Rising exports and strong financials make this share a good buy.
✓ Cosmo Films is expanding aggressively. FY21 profits were more than double of FY20. Current
year is also expected to be good. A bonus issue is likely. Accumulate.
✓ Recently listed Shyam Metalics posted vastly improved results for Q421 with NP at Rs. 387.7 cr
v/s Rs. 79.93 in Q420. translating into an EPS of Rs. 16.60 v/s Rs. 9.24. For the full year, EPS stood
at Rs. 36.1 v/s Rs. 14.56 last year. The market price of this company has the potential to rise
further.
✓ REC has raised $ 400 mn via bonds to finance the power sector. The bonds are slated to mature in
2027. A good long term bet especially in this overbought market.
✓ Wipro will continue to grow and surprise the market said its CEO, Thierry Delaporte. The
Company also has its hands in the 5G products rollout. A safe bet at all rates.✓ Petrol prices are hovering around Rs. 100 per litre and slated to rise further. Ethanol blenders and
manufacturers are sure to gain. Buy Rana Sugar and Bajaj Hindustan immediately.
✓ There is alarming scarcity in the semiconductor industry. Buy Moschip as the Company is about
to turnaround. It supplies products to distinguished clients the world over. Risk bearing investors
must definitely buy.
✓ Acrylonitrile Butadiene Styrene (ABS) is a superior replacement of metals given its high impact
strength and heat resistance and thus preferred in electrical white goods, automobiles and
electronic sectors. The firming up of ABS prices will boost the profitability of Bhansali
Engineering and Ineos Styrolusion. Buy both.
✓ GNFC, manufacturer of fertilizers and chemicals, has posted 29% higher Q4 EPS of Rs 20 and 37%
higher FY21 EPS of Rs 44.9. Its robust prospects may end FY22 EPS of Rs 55+. This share, which
hit a life-time high of Rs 548 on 24 Oct 2017 can touch Rs 550. Buy.
✓ Power Finance Corp., a Navratna PSU maintains 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 touch
Rs 160 in the near term. Buy.
✓ Indian Bank, which made a lifetime high of Rs 428 on 17 Nov 2017, and amalgamated Allahabad
Bank with itself, has notched FY21 EPS of Rs 27, which may rise to Rs 30+ in FY22. A P/E of 12x
can take its share price to Rs 360 in the medium term. BuyAdd.
✓ 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 share. With likely EPS of Rs 38, the share trades at a forward P/E of 9x.
Accumulate for 33% gain.
✓ LG Balakrishnan & Bros, the No. 1 OEM supplier of Drive Chains for 2-Wheelers and the largest
exporter to USA has posted 356% higher Q4 EPS of Rs 18.5 and 45% higher FY21 EPS of Rs 42.5,
which could end with FY22 EPS of Rs. 60. Buy for 30% gain.
✓ GHCL, manufacturer of soda ash and home textiles with captive power has notched 35% higher
Q4 EPS of Rs 11.7 and FY21 EPS of Rs 34.3. Its expansion in soda ash and proposed demerger of
the textile and chemical biz can fetch a decent 30% gain in the medium term.
✓ NDTV has posted 241% higher Q4 EPS of Rs 4.1 (FV Rs 4) and 189% higher FY21 EPS of Rs 11
and may post FY22 EPS of Rs 15. The share may cross the Rs 120 in the medium term. Add.
✓ Nava Bharat Ventures, manufacturer of all types of ferroalloys operating in India, Europe, Middle
East, South East Asia and Africa, has posted Q4 EPS of Rs. 8.4 and FY21 EPS of Rs. 26, which may
lead to FY22 EPS of Rs. 32. It is selling its sugar plants. The share can fetch a decent gain of over
30% in the medium term. Buy.
✓ Prima Plastics, a competitor of Nilkamal Ltd. with 4 plants in India and 3 abroad has notched a
48% higher FY21 EPS of Rs 13.6 that could rise to Rs 18 in FY22. Buy for 40% gain.
✓ Apar Industries into conductors, cables, speciality oils and lubricants exporting to 100 countries
having competitive edge has notched Q4 EPS of Rs 12.2 and 19% higher FY21 EPS of Rs 42, which
could lead to FY22 EPS to Rs 52. Massive investments over FY21-25 in power transmission and
100% electrification of railways augurs well for it. A reasonable P/E of 14.5x can take its share
price to Rs 754 in the medium term. Buy.
✓ Debt-ridden J P Associates is into engineering, construction & real estate development and
manufacture of cement. Its lenders are looking at a possible resolution outside the Insolvency and
Bankruptcy Code. If this restructuring happens, the stock may give 10x returns.
✓ Jindal Stainless Steel offers a wide range of products including Ferro Alloys, Stainless Steel Slabs,
Hot Rolled Coils, Plates and Sheets, Cold Rolled Coils and Sheets. In FY21, it cut its debt by almost
20%. JSL can now touch Rs.160.
✓ India Pesticides is the sole manufacturer of Folpet Thiocarbamate, a herbicide. It manufactures
over 30 insecticides, fungicides, and herbicides and exports to over 20 countries and exports
account for 62% of its revenue. The stock can touch Rs.500.
✓ Jubilant Industries’ adhesive ‘Jivanjor’ is the second largest brand with 20% market share next
only to Pidilite’s Fevicol. Its recent distribution agreement with US giant, HB Fuller. will be a game
changer. Jubilant is a screaming buy as it trades at a mktcap of just Rs.500cr v/s Pidilite’s mktcap
of over 1lakh cr!
✓ Harrisons Malayalam, the largest producer of Tea in South India along with 9000 tonnes of
rubber, has posted an EPS of Rs.20+ across the last two quarters. With Tea and Rubber prices
skyrocketing, this stock trades cheap at 5x multiple and can easily double from the current level.✓ Saregama’s stock price zoomed from Rs.500 to Rs.3600, Tips Industries from Rs.100 to 1400 but
Shemaroo lags behind around Rs.120 being in the T2T segment. Buy it at every decline for multibagger gains. The ATH of the stock stands at Rs.600.
✓ After a huge decline the stock price, Adani Power seems settled around Rs.110. But now by
acquiring Essar’s power business, it has again come into the limelight.
✓ Long term investors with holding capacity are betting on the future development prospects of
huge land parcels in major cities. Hemisphere Properties holds acres of land in Pune, Kolkata,
Greater Kailash, Chattarpur, etc. Its monetization process should gain pace with a new IAS chief.
Buy at every decline.
✓ TVS Electronics recommended at Rs.171 last week went on to make a new 52week high of Rs.217
appreciating almost 27% in a week.
✓ NMDC has been allotted a mine in Bailadia in JV with Chhattisgarh Mineral Development Corpn.
having reserve of 107 MMT of very high-quality grade 65.39% ore, which is the best in the world.
The mkt value of these reserves is over Rs. 2 lakh crore. Buy for a target of Rs.260.
✓ Capacite Infra, a Mumbai infra company, is available cheap at a mkt cap of just Rs. 1500 cr. It
targets FY22 turnover of Rs. 2000 cr. with PAT of Rs. 125+ cr. The stock is available at a steep
discount to its peers. Buy for a target of Rs.310.
✓ Thomas Cook, the market leader of travel & tourism, may be the biggest beneficiary of the 5 lakh
free tourist visas free till 31st March 2022 as tourism revives after the nationwide vaccination
drive. A V shaped recovery in its fundamentals and stock price cannot be ruled out. Buy for a target
of Rs.120.
✓ Force Motors came out with its highest sales this quarter. Ambulance and travel demand being
so high, the future prospects of the company look very strong. Buy for a target of Rs.3000.
✓ Rajapalayam Mills has 14% stake in Ramco Cements and 10% stake in Ramco Industries valued
at Rs. 3800 cr. Yet, it trades at 82% discount to its NAV and at 6 times to its textile business. Buy
for 50% gain within a year.
✓ Food & food packaging industry are doing well in the pandemic. Both KRBL & LT Foods are doing
well and are reasonably priced with a lot of upside potential.
✓ Similarly in packaging, Uflex is reasonably priced
✓ Colgate & Dabur recommended earlier are touching new highs.
✓ Ace investor Ashish Kacholia added 2.16 lakh shares of IOL Chemicals & Pharma in
Q1FY22 taking his total holding to 9.66 lakh shares. On 1st July 21, CARE upgraded
the co’s. long term bank facility of Rs.140 cr. rating to A+ from A and short-term bank
facility of Rs. 210 cr. to A1+ from A1. Stock is ready to break out of consolidation
mode. Add for quick gains.
✓ Insecticides India’s Q4FY21 EPS skyrocketed to Rs.10.54 v/s negative Rs.3.44 in Q4
FY20. The full year FY21 EPS of Rs.45.43 calls for immediate buying.
✓ Indian Acrylics, a company from the Steel Strip Wheels group, announced a jump of
548% in Q4 PAT. Accumulate it for decent gains in the short to medium term.
✓ BCPL Railway Infra is a dividend paying company with 74% promoter holding. The
stock hit a 52-week high of Rs.114 but is now available around Rs. 54.Buy as it
reported 253%jump in Q4 PAT and has ventured into Ethanol through a subsidiary.
✓ Ruby Mills is a dividend paying company with a share book value of Rs. 299, promoter holding of
around 75%. It announced 121% jump in Q4 PAT. Buy for quick gains.
✓ Vascon Engineers is into EPC and real estate with a share book value of Rs. 39, Marquee investors
hold around 22%. It repaid debt of Rs. 41cr. in FY21, and boasts of a healthy order book of around
Rs. 2109 cr, Buy for decent gains in the short to medium term.
