After Tuesday, the Street will talk of the Union Budget. Hence focus on stability & growth over the next 5 years, which will elevate corporate earnings.
MONEY TIMES TALK -JUNE 01, 2024
As per a technical expert if BJP gets 325-340 seats, the Nifty will move-up as life time high shorts of 2.97 lakh contracts are seen. Open Interest at a lifetime high of Rs.1.39 lakh cr. on expiry day suggest that insiders are long but FPI/retailers are short. Nifty RSI is 47 and many have predicted a 25% fall if BJP does not come to power. Hence stay long with fundamentally strong stocks. However, if NDA gets seats below 295 a sharp correction is likely. But if INDI forms the government, 20-30% correction is possible.
As per market veteran four points to remember before any big event.
1. Avoid trying to predict the market move.
2. Do not keep over leveraged positions.
3. Keep yourself calm & composed
4. We can all talk endlessly on how market will react but we will only come to know when it happens
Trading Lessons from film ‘SHOLAY’ characters.
1. Jai – The Strategic Trader: Jai’s calm and strategic mindset mirrors a trader who plans every move and stays composed under pressure.
2. Veeru – The Risk-Taker: Veeru’s bold & daring nature represents a trader who takes calculated risks to maximize profits.
3. Gabbar Singh – The Market Manipulator: Gabbar’s dominance and control reflect market forces that traders must navigate carefully.
4. Thakur – The Resilient Trader: Thakur’s resilience and determination symbolizes a trader who bounces back from losses and never gives up.
5. Basanti – The Emotional Trader: Basanti’s emotional responses illustrate the pitfalls of trading with emotions rather than logic.
6. Sambha – The Loyal Advisor: Sambha’s loyalty and support highlight the importance of having a reliable mentor or trading partner.
By embodying the best traits of these characters, traders can improve their strategies, manage risks better and ultimately achieve greater success in the market.
As per market veteran, the next 5 years are more important than the next 5 days. Election results event will also pass with flying colors. We all have been waiting for the verdict of the new government since-long and it will be clear by this week. The volatility will be there for sure due to exit polls or even ‘sell-on-news’ syndrome. But one thing is clear to me that the next 5 years are more important. After Tuesday, the Street will talk of the Union Budget. Hence focus on stability & growth over the next 5 years, which will elevate corporate earnings.
In 21st October MTTs, Techno Electric & Engg. recommended at Rs. 514 touched Rs.1450, a gain of 182%.
In 11th May MTTs, DCM Shriram Inds. recommended at Rs.195 touched Rs.235.
In 18th May MTTs, ITD Cementation recommended at Rs.391 touched Rs.418, Kabra Extrusiontechnik recommended at Rs.384 touched Rs.417, Andhra Petro recommended at Rs.90 touched Rs.111, PNC Infratech recommended at Rs.458 touched Rs.574, IRB Infra recommended at Rs.69 touched new high of Rs.76.55 during the week.
Last week in MTTs of 25th May 2024, Cords Cable recommended at Rs.207.50 touched Rs.222, Thakkers Developers recommended at Rs.219 touched Rs. 248, Universal Starch recommended at Rs.167 touched Rs. 209, MK Ventures Capital recommended at Rs.2224 touched Rs.2585, Panasonic Carbon recommended at Rs.517 touched Rs.535 during the week.
Bharat Seats manufactures seating systems, NVH components & body sealing parts for 4-wheelers, welded frame assemblies for 2-wheelers and seating system for Indian Railways. Promoters hold 74.59% and 6 reputed HNIS hold 3.51%. It FY24 NP stood at Rs.25.05 cr. and dividend raised to 80% from 70% in FY23. Buy for good gains.
Panasonic Carbon India notched PAT of Rs.18.51 cr. and raised 120% dividend. Its small equity of Rs.4.8 cr. is backed by huge reserve of Rs.152 cr. Keep on radar for multi bagger gains.
National Fittings’ FY24 NP shot up to Rs.5.84 cr. and declared 15% dividend. 20 HNIs hold 16.61%. Its 52 weeks high is Rs.195. Buy for hefty gains.
Smruthi Organics recorded 120% higher Q4 NP of Rs.1.52 cr. on higher income of Rs.39.66 cr. and declared 15% dividend. Its 52 weeks high is Rs.219. Buy for 25% gains.
Sky Industries notched 161% higher PAT of Rs.6.10 cr. for FY24 and announced 10% final dividend. Its FY24 operating cash flow rose 353% to Rs.8.25 cr. Promoters hold 58.11% and 15 HNIs hold 20.36%. Buy for 35% gains.
Vasundhara Rasayan notched FY24 PAT of Rs.5.86 cr. on its small equity of Rs.3.18 cr. Its 52 weeks high is Rs.285. Buy for hefty gains.
Anantraj’s Q4 revenue stood at Rs. 453 cr., up 56% YoY and NP jumped 71% YoY to Rs. 84 cr., which will help it turn debt-free status by Dec 2024, Net debt ending Q4FY24 stood at Rs. 290 cr. Keep on radar for decent gains.
Rudra Global Infra notched 50% higher FY24 NP of Rs.20.76 cr. It has venture into Aerospace & Defence with a new subsidiary ‘Rudra Aerospace and Defence Pvt. Ltd.’ Keep on radar for 50% gains.
Andhra Petrochemicals posted 628% higher Q4 EPS of Rs 5.17 and declared 20% dividend as against 15% last year. It is the largest manufacturer of Oxo alcohols and is available at forward PE of just 5x. Buy for huge gains.
ABM Knowledgeware posted 140% higher NP of Rs.5.63 cr. with an EPS of Rs 7.18 in FY24. Promoters hold 67% stake and it trades at a P/E of just 17x. A re-rating candidate, buy for decent gains.
Shri Bajrang Alliance posted Q4 EPS of Rs 16.33 against Rs.8.18 QoQ and EBITDA rose 395%. It posted FY24 PAT of Rs.40.86 cr. with an EPS of Rs. 45.40. It trades at an attractively PE of just 6x. Its 52 weeks high Rs.353. Buy for multi-bagger gains.
Debt-free Denis Chem, posted FY24 EPS of Rs 8.04 compared to Rs.5.66 last year and declared 25% dividend v/s 20% last year, M.Cap / Sales is just 0.55x. Varun Daga, managing partner of billion dollar Dream 11 holds 11.5% stake, FIIs hold 20.74%. Its 52 weeks high is Rs.223. Buy for multibagger gains.
RDB Rasayan posted FY24 PAT of Rs.24.23 cr. fetching an EPS of Rs.13.68 cr. Its 52 weeks high is Rs.185. Buy for 40% gains.
Gujarat Intrux has reserves of Rs.58.56 cr. on its small equity of only Rs.3.44 cr. Promoters hold 58.31% and 5 HNIs hold 6%. For FY24, it posted 27% higher PAT of Rs.7.41 cr. and raised dividend to 100% from 70% last year. Its 52 weeks high is Rs.400. Buy for 45% gains.
SNL Bearings has reserves of Rs.56 cr. on its small equity of Rs.3.61 cr. Promoters hold 74.39%. For FY24, it posted PAT of Rs.7.82 cr. and raised dividend to 70% from 65% last year. Its 52 weeks high is Rs.445. Buy for 50% gains.
Franklin Industries into contract farming and agri processing closed at Rs. 7.79 on Friday, 31st May 2024. Its rights issue at Rs. 3.58 for Re.1 paid-up share is therefore an attractive offer.
Adani Power, largest thermal power producer with 15,210 MW capacity across 8 plants, contributes 6% to the nation’s thermal power generation. Constructing a 3,600 MW project in MP with a capex of Rs. 12,100 cr., it trades at a PE of 14x. It may hit a 4-digit target in the short term given India’s power demand and its valuation.
Tata Power, the largest integrated power co. is transitioning to renewables and aims to establish 100,000 EV charging stations by 2025. With top-to-bottom presence in electricity generation, transmission, distribution, and strong financial performance it is poised for solid growth.
Rudra Global Infra Products manufactures TMT Bars meeting global standards, serving top clients like L&T, Reliance and Adani. With doubled production capacity and impressive Q4FY24 results, it now trades at a low PE of 22x offering potential for growth.
Inspire Films launches ‘Freshh Mint,’ a digital label offering original web series and quick-hit content for young adults. This venture will also explore new revenue streams through exhibition, distribution, licensing & merchandising.
PhantomFX’s strong FY24 is by acquisition of Tippett Studio and new partnerships promise significant growth & innovation. Future plans include expansion into animation & gaming focused on global markets and leveraging AI & partnerships.
Nintec Systems’ Q4 profits zoomed 159% and margins expanded by 8%. Its revenue jumped 70.39% and EBITDA soared 143.65% YoY, reflecting strong operational performance.
Digikore Studios hires notable figures like Jason Sperling and Marina Abramyan in USA and Canada to bolster its talent pool and aims to maintain its success trajectory.
AVG Logistic’s FY24 PAT zoomed 283% and declared 12% dividend this year as against 10% in FY23.
QMS Medical Allied Services posted 41% higher FY24 PAT driven by its expansive Patient Service Programs, offering specialized screening tests nationwide.
Praveg’s Q4 income surged 76% YoY on expansions including tent cities in Ayodhya and Lakshadweep, a resort in Gujarat’s Blackbuck National Park and significant fundraising for further development.
Kaushalya Logistics’ FY24 revenue surged 134%. In Q4, it expanded its C&F operations in partnership with Dalmia Bharat establishing a new hub depot for JK Cement in Varanasi and extend operations to 50 new depots across Central India.
Kontor Space, the first co-working space company to get listed on the stock exchange, posted FY24 revenue of Rs.11.03 cr.
Dhruv Consultancy Services’ Q4 PAT zoomed 410% while FII/FPI holdings multiplied 27x QoQ as the number of foreign investors rose 7x, indicating the growing global reported an outstanding confidence.
Shri Keshav Cement & Infra generated Rs.97.93 cr. in FY24 from its Cement business, Rs. 19.88 cr. from its solar business, and Rs.8.63 cr. from its other businesses.
Maiden Forgings posted FY24 income of Rs. 237 cr. as sales rose 18% from 29,131 MT in FY23 to 34,451 MT in FY24.
Power & Instrumentation (Gujarat) achieved 62% growth in FY24 NP reflecting substantial YoY improvement in financial metrics including impressive growth in both EBITDA and NP.
Rockingdeals Circular Economy into B2B e-commerce specializes in bulk trade of excess and open-box inventory offering refurbished products, announced 228.39%. growth in H2 income of Rs. 49.85 cr.
Thaai Casting posted 171.95% higher FY24 PAT of Rs.1369.89 cr. and a PAT margin of 15.10%, reflecting a YoY rise of 485 bps.
Kontor Space posted FY24 revenue of Rs.11.03 cr. with PAT of Rs. 1.95 cr. from its 7 co-working centers across 6 key locations covering an area of 96,300 sq. ft. with a total seating capacity of 2,400.
Inspire Films’ FY24, its total income stood at Rs.30.44 cr. with NP of Rs.2.57 cr., achieving an EBITDA margin of 19% and a net profit margin of 8.44%.
Phantom Digital Effects posted FY24 total income of Rs.90.43 cr. with 48.89% higher NP of Rs. 4.11 cr.
Sigachi Industries’ FY24 revenue rose Rs. 3989 mn., EBITDA grew 30.49% and PAT recorded a robust growth. The board has recommended a dividend. Add.
Nandan Denim’s FY24 revenue stood at Rs. 2010.08 cr., EBITDA grew 40.67% YoY and PAT grew by a staggering 8384.91% YoY to Rs. 44.97 cr. Buy.
Remedium Lifecare’s FY24 revenue skyrocketed 692% to Rs. 4042 cr., EBITDA jumped 312% YoY and PAT zoomed 560% YoY to Rs. 33 cr. Add.
Standard Capital Markets’ FY24 revenue zoomed 142.72%, EBITDA grew 146.50% YoY to Rs. 2312.63 lakh and PAT soared 380.69% YoY to Rs. 1071.02 lakh. Buy.
Salasar Techno Engg’s. FY24 revenues grew 20.25% to Rs. 1208 cr., EBITDA jumped 33.34% YoY and PAT rose 31.55% YoY to Rs. 52.94 cr. Add.
Sakuma Exports’ board recommends final dividend of 5% as revenue surged to Rs. 2140 cr., while the net profit jumped 42.49% to Rs. 39.97 cr. Buy.
Krystal Integrated Services’ board recommends 15% dividend as revenue grew 45.1% YoY to Rs. 1,026.8 crore, EBITDA rose 37.8% to Rs. 68.7 cr. and PAT stood at Rs. 49.0 cr. Add.
Davangere Sugar Co. expands capacity by 45 KLPD and targets additional sugar cane growing area by 15000 acres. It also commissioned 35 TPD capacity CO2 processing plant. Buy.
Suratwwala Business Group’s revenue soared 97% YoY, EBITDA skyrocketed 989% and PAT rose 31% to Rs.27.80 cr. The board has also approved borrowing power up to Rs. 250 cr. Buy.
Lorenzi Apparels to convert 2,47,230 warrants into 2,47,23,00 equity shares of FV of Re.1 each, out of the 10,38,37,10 warrants allotted on 5th Oct 2023 on a preferential basis. Add
NECC’s Q4FY24 revenue stood at Rs. 9184.16 lakh and PAT grew 39% YoY to Rs. 802.20 lakh. Buy.
Srestha Finvest’s Q4FY24 revenue zoomed 462% YoY, PAT stood at Rs. 506 lakh and Net PAT (total comprehensive income) stood at Rs. 1767.74 lakh. Add.
SBC Exports unveils expansion strategy, looks to increase export volumes. It will also aim to launch 50 franchise stores in high-potential markets and open 30 retail stores in Tier -2 & Tier 3 cities. Add
Coral Laboratories into pharmaceuticals for 20+ years has an equity of only Rs.3.6 cr. and BV of Rs.492. It posted FY24 EPS of Rs.44.2. A reasonable P/E of 20x could take its share price to Rs.800. Buy.
Golkunda Diamonds a leading manufacturer and exporter of diamond studded gold jewellery, has posted FY24 EPS of Rs.13.8. Accumulate.
Morganite Crucible manufactures silicon carbide and clay graphite crucibles used in non-ferrous metals. It posted FY24 EPS of Rs.52 on its small equity of just Rs.2.8 cr. and cash of Rs.50 cr. Buy.
Indian Hume Pipe’s 20:80 JV bags orders of Rs.1138 cr. from the Public Health and Municipal Engineering Department of Telangana and has revenue-share agreement with Kalpataru and Raymonds. It posted FY24 EPS of Rs.15. Buy for the long-term.
Sandesh Ltd. a Gujarati newspaper publishing from seven centres has posted FY24 EPS of Rs.249.3. It trades at a P/E of just 5.3x and has a BV of Rs.1795. Add on dips.
Canara Bank with 9588 branches (including 3 overseas) has posted FY24 EPS of Rs.16.8. A reasonable P/E of 8.5x could take its share price to Rs.142. Add.
Natco Pharma posted 97% higher FY24 EPS of Rs.77.3. Promoters hold 50%, MFs 4%, Insurance cos. 6%, FIIs 16% and PCBs 2%. A reasonable P/E of 20x could take its share price to Rs.1546. Add.
Styrenix Performance Materials with products application in automotive, electronics, packaging, household, construction, healthcare, toys and sports has posted FY24 EPS of Rs.98.3. Buy for 20% gains.
Bharat Dynamics’ Q4 NP zoomed 113% to Rs.288.8 cr. QoQ on 42% higher revenue of Rs.854 cr. Post stock-split, it still looks strong and has the potential for hefty returns. Add.
Jio Financial to expand its loan solutions with loans on mutual funds and home loans and unveiled the beta version of the Jio Finance App that offers UPI, digital banking and loans on mutual funds. Add for the long term.
KIMS Hospital signs a lease agreement to establish a 350-bed super-specialty hospital at the Peoples Education Society (PES) campus. A big positive. Add.
Schneider Electric, a digital transformation of energy management and automation provider to invest Rs. 3,200 cr. and expand its industrial footprint by 2026. Add.
Jindal Stainless to invest Rs.5,400 cr. and expand its melting & downstream capacities. It also plans to set up a JV in Indonesia for a stainless-steel melt shop and enhance its melting capacity by 40%. Add.
National Aluminium Q4 NP grew 108% to Rs.1015 cr. QoQ on higher revenue of Rs.3579 cr. FY24 belongs to metals and this PSU is a safe bet. Add.
GRSE is executing 7 shipbuilding projects including 3 Advanced Frigates, 4 Survey Vessels & 8 Anti-Submarine Warfare Shallow Water Crafts. It may split the share going ahead. Add for multi-bagger gains.
SBC Exports to venture into retail, franchising and increase exports by 30% in emerging markets of Asia, Africa and South America with regional offices in key markets. Add.
Subex’s arm wins contract worth $1.1 million from telecom operator in Europe for fraud management on Hyper Sense AI /ML platform. A big positive. Add.
Tata Steel plans capex of Rs.17,000 cr. with ~ 75% aimed to meet the booming domestic demand. Add for the long term.
Money Times Talk is part of ‘Money Times’ Publication.
Disclaimer: Do your due diligence before taking any investment decision.
