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Bulls & Bears: D Street Signals

Wassup & down in D Street

By Arrangement with MONEY TIMES 

HCL Tech Q321 Net profit surged 31% to Rs. 3982 cr. YoY beating analysts’ expectations. With attritions at an all-time low, it is confident of higher profitability in the coming quarters. Add.

L&T Finance’s Q3 profits nosedived 51% to Rs. 291 cr. YoY. However the company is recovering QoQ and the share may be retained at the current price.

Hindustan Zinc posted excellent Q3 results with profits jumping 28% to Rs. 2200 cr. YoY. Vedanta group holds around 65% stake and it is one of the best dividend play in the market. Rising prices of zinc and silver point to better profits ahead. Buy.

An Ahmedabad based analyst recommends to buy APM Ind , Banaras Beads, ,Everest Organics, Haryana Ship, Magna Electro Casting, Morpean Lab likely to be the multibagger of 2021-22 , Nitta Gelatine, Precot, Panasonic Carbon, Rajjo Engineering and Samkarg Piston

J.K.Tyre, the leader in radial tyres, posted its best quarterly result with revenue of Rs. 2776 cr. and PAT of Rs. 253.55 cr. translating into an EPS of Rs. 9.10. The management is confident of better times ahead. Buy immediately for handsome gains.

Long term investors can buy Power Grid around Rs. 203. This share is one of the safest bet at just 1.6 times book value and pays handsome dividend of around Rs. 10 per share. Buy.

Nesco plans to modernize its Bombay Exhibition Centre for about Rs. 325 cr. and set up a 40 lakh sq. ft. Infotech park for around Rs. 1800 cr. This share had hit a high of Rs. 816 and is a good buy given the assured business and growth prospects.

Lenders to DHFL will get only 30% of their dues spread over 5 years. The Piramals have made it clear that shareholders will get zero returns. The share may be delisted soon. Sell and exit.

Rallis India, an agro science company and a subsidiary of Tata Chemicals posted good Q3 numbers as profits grew b 20% to Rs. 45.64 cr. Add in small quantities.

Maruti Suzuki has raised the price of select vehicles by up to Rs. 34,000. Its ability to pass on the rising input costs will boost profits. Add.

Health related surgeries postponed in the pandemic are expected to gather momentum and analysts expect sector revenue to grow 20% in the next one year. Buy Max Healthcare and Apollo Hospitals.

Semiconductor shortage has affected passenger car production. We had recommended *Varroco*at Rs. 386 a few days back, which is now above Rs. 420. Still a good buy. Add.

Pig iron and ductile iron major, Tata Metaliks’ Q3 profit jumped 64% to Rs. 75 cr. YoY despite 268% in tax expenses. The share is still a good buy around Rs. 825. Add.

Dixon Technologies is likely to consider a stock split when declaring Q3 results on 2nd Feb. Its superlative working and monopolistic business warrants an immediate buy.

The Budget is expected to give big thumbs up to infrastructure and defense stocks. Add Reliance Infra which has presence in both these sectors. The company is clearing its debts fast and is on a rebound. Buy

Tata Steel BSL, the biggest manufacturer of auto grade steel, has returned to the black with a Q3FY21 profit of Rs. 913 cr. v/s a loss of Rs. 502 cr. in Q3FY20. With a book value of Rs 169, this share is an excellent buy around Rs. 44.

Bajaj Finance shows signs of stress as Q3 profits dipped to Rs. 1146 cr. from Rs. 1614 cr a year ago. Apart from reversing some interest income, the Company is witnessing lower loan disbursals. Sell now buy later at lower prices.

VST Industries, owner of Charminar cigarette, posted Q3FY21 EPS of Rs. 47.73 against Rs. 54.77 in Q3FY20. For 9MFY21, it recorded an EPS of Rs. 154.10. At Rs. 3645, this share is worth adding.

Bajaj Auto posted an excellent Q3 with NP rising 30% to 1716 cr. on a revenue growth of 17% to Rs. 8910 cr. It is witnessing rising volumes and the share is a good buy. Add.

Asian Paints Q3 profits rose 62% to Rs. 1238.34 cr on a 25.2% rise in revenue to Rs. 6788 cr. Growing demand for paints makes this leader in paints an attractive buy.

HAL has successfully test fired a smart anti airfield weapon from Hawk 1 aircraft. This defence major is likely to bag more orders in the ensuing budget. Add.

Jindal Steel & Power plans to manufacture Railway containers presently imported from China, which is a lucrative business. It posted Q3FY21 profit of Rs. 2566 cr. against a loss of Rs. 218.57 cr. in Q3FY20. A good buy.

BSE listed Avantel Ltd designs, develops & manufactures satellite products and services for Boeing, Indian Navy, Railways, Indian Army, DRDO, ISRO, etc. Sources aver that Tata group’s NELCO is eyeing a majority stake in it. Valuation wise, too, it posted Q3 EPS of Rs.12. The stock can easily appreciate 50% from the current level.

SAIL’s recently concluded its OFS at Rs.65/share but the stock now trades around Rs,58. Steel prices are at multi year highs and a 10-20% correction in them is given. In the last steel bull-run, SAIL was quoting in 3 digits and is very likely to see the same levels again. Buy.

After the recent run in tyre stocks, other auto ancillary stocks may follow suit. Radiator manufacturer, Banco Products, trades cheap at a P/E of less than 10x and can easily double from the current level. Buy at every decline.

De Beers has raised diamond prices by 5-10%. *Goldiam International * which makes diamond jewellery, could be in focus in the coming week.

RPG Life Sciences shows signs of life after a dull 2-year period. Any declines towards Rs.400 level would provide a good buying opportunity.

Mallcom (India) Ltd., leading provider Personal Protective Equipment covering head toe notched FY20 EPS of Rs 25 with its presence in over 50 countries as a valued partner of major importers under their brand names. Buy for mega gains.

Welspun Corp, maker of Ductile Pipes, has a new Rs 1200 cr. order from Saudi Aramco taking the total order to Rs 7,100 cr. With a likely FY21 EPS of Rs 24, the share is available at a steep discount of over 40% from its 52-week high of Rs 234. Accumulate for decent gains.

Aries Agro Micronutrients engaged in the business of plant protection, fishery & animal nutrition, Speciality Nutrients, Water Soluble NPK and hydroponics consultancy is expected to notch FY21 EPS of Rs 15+. The share is going cheap. Buy.

ISGEC Heavy Engineering has notched 74% higher net profit in Q2FY21 and 61% higher net profit in H1FY21 on its tiny equity of Rs 7.4 cr. and is likely to notch FY21 EPS of Rs 32-34. Buy.

Nahar Poly Films, manufacturer of a wide range of micron BOPP films, has notched 46% higher net profit posting Q2FY21EPS of Rs 4.9 and is expected to post FY21 EPS of Rs 22-24. A reasonable P/E of 6x can take its share price to Rs 132 in the medium-to-short term. Accumulate.

Vishnu Chemicals, manufacturer and exporter of Chromium and other specialty chemicals has posted 41% higher Q2 net profit leading to FY21 EPS of Rs 28. The share trading at a forward P/E of 5.9x against the industry average P/E of 33 has all the potential to appreciate by 30%. Buy.

Sree Rayalaseema Hypo Strength, manufacturer of organic and inorganic chemicals and big producer of calcium hypochlorite and stable bleaching powder, has posted Q2FY21 EPS of Rs 9.4 and Rs 17.3 in H1FY21 and may notch FY21 EPS of over Rs 35+. The share can double from the current level. Buy for 25% appreciation.

Hinduja Global Solutions has registered Q2 EPS of Rs 39 and H1FY21 EPS of Rs 62 in H1FY21 and may post FY21 EPS of Rs 130+. Robust growth of the Indian BPM Industry, opportunity in US healthcare reforms, larger deals and penetration into the public sector marketplace in Europe & Canada give solid revenue visibility going forward. Buy for 30% upside.

Swelect Energy Systems, formerly Numeric Power, is a leading Solar Power Systems company with state-of-art manufacturing facilities for Solar equipment has reported 68% higher Q2 EPS of Rs 6.7 and 740% higher H1FY21 EPS of Rs 14.3 and share book value of Rs 472. A reasonable P/E of 12x can take its share price to Rs 300 mark at a likely FY21 EPS of Rs 30. Buy.

Indian Metals & Ferro Alloys has notched Q2 EPS of Rs 16 and H1FY21 EPS of Rs 25 and likely FY21 EPS of Rs 50+ on the back of a strong operational performance and healthy market conditions. It also expects imposition of export duty on chrome ore by South Africa to have a positive impact on ferrochrome prices. Accumulate.

Titan Biotech, a leading manufacturer & exporter of biological products used in Pharmaceuticals, Nutraceuticals, Food & Beverages, Biotechnology & Fermentation, Cosmetics, Veterinary & Animal

Feeds, Agro Industries etc. has notched 515% higher Q2 net and 407% higher H1FY21 net profit. It is expected to notch an EPS of Rs 40+ in FY21. Buy this share for 50% appreciation.

(Disclaimer: This content is direct feed from Money Times)

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Bulls & Bears: D Street Signals

Wassup & down in D Street

MONEY TOWER TALK - FEBRUARY 14, 2021

●   PTC India’s Q3FY21 EPS of Rs. 3.61 v/s Rs. 1.64 in Q3FY20 and its 9MFY21 EPS of Rs. 12.84 crossing the full FY20 EPS of Rs. 12.42 points to an FY21 EPS of around Rs. 16. A handsome dividend can be expected and share price is poised for a big jump. Buy.

●   Godrej Properties’ Q4FY21 will be a blockbuster by revenue and profits. With record bookings of Rs. 5915 cr. and the trend continuing, its future is bright. Buy on declines.

● An Ahmedabad based analyst recommends to buy APM Finvest (PAT rose 261% in Q3FY21), Everest Kanto Cylinder, Faze Three Ltd. (PAT rose 28% in Q3FY21), Gallantt Metal (PAT rose 456% in Q3FY21), Haldyn Glass (PAT rose 81% in Q3FY21), Kanpur Plastipack (PAT rose 423% in Q3FY21), Loyal Textiles (PAT rose 3046% in Q3FY21), Magna Electro, Morepen Lab (PAT rose 149% in Q3FY21), Nitta Gelatine (PAT rose 97% in Q3FY21).

●  J B Chemicals plans to diversify into the cardio metabolic segment and create a new product portfolio. Last year, it also launched a diabetic drug. An excellent investment opportunity.

●   Cement output to rise on the back of huge infrastructure allocations in the Budget and big impetus to affordable housing. Buy Ultratech Cement and Shree Cement.

●  High Energy Batteries posted a superb Q3FY21 EPS of Rs. 59.10 v/s Rs. 13.35 in Q3FY20. Its equity is very small but it has a great future. Add.

●   Most analysts have raised target price of M&M after its stellar Q3 performance. Its Q4 is slated to post better results. Add.

●   Bodal Chemicals is in talks with Mawana Sugar to acquire its Chor-alkali business. Buy Bodal Chemicals.

●   Sunteck Reality plans to invest about Rs. 6000 cr. in and around Mumbai and has acquired large parcels of land in Vasai at rock bottom prices during the pandemic. A nice long time buy.

●   Lupin has received USFDA approval for its generic drug Tavaborole topical solution, an antifungal drug. It posted a profit of Rs. 441.35 cr. in Q3 FY21 v/s a loss of Rs 840.36 cr. in Q3 FY20. A good buy at current rates.

●   VST Tillers Tractors posted Q3FY21 EPS of Rs. 35.68 v/s Rs. 4.02 in Q3FY20. Its 9MFY21 EPS of Rs. 90 makes this share an excellent buy.

●  IRB Infra plans to raise Rs. 2200 cr. via NCDs to repay its existing loan of Rs. 1600 cr. and for other general corporate purposes. The share is a good long term investment bet. Add.

●   Bank of India is on a comeback trail with 9MFY21 EPS of Rs.5.83 from a negative EPS of Rs. 9.10 in 9MFY20. The Budget has set aside big funds to recapitalize this bank. Add.

●   Hindalco’s Q3FY21 profit soared 77% to Rs. 1877 cr. With signs of fresh demand emerging, its the next few quarters will be equally good. Buy.

●   Hero MotoCorp Q3 profits rose 14% to Rs. 1067 cr. YoY despite rising production costs. An interim dividend of Rs. 65 plus a special dividend of Rs. 5/share makes this share a compelling long-term investment.

●   Dalmia Bharat’s Q3FY21 profit zoomed 603% to Rs. 183 cr. on higher sales. With big infra money set aside in the Budget, its next two years will be exciting. A good long term buy.

●   Bajaj Electricals reported all-around improvement in Q3. Consumer products revenue was up 34% resulting in EBIT rise of 115% and a NP of Rs. 134 cr. The share merits a buy.

●   HPCL, a Maharatna PSU, posted Q3 EPS of Rs. 15.52 v/s Rs. 4.90 last year. Its 9MFY21 EPS has already crossed Rs. 50 and is an excellent share to add.

●   Gujarat Gas is witnessing substantially high volumes especially from the industrial segment. The strong demand and pricing power will lead to higher profitability. Buy.

●   Meghmani Organics’ Q3 revenue rose to Rs. 657.67 cr. from Rs.522.22 cr. and NP surged to Rs. 106.10 cr. v/s Rs. 76.81 cr in Q3FY20. Its dyes & pigments unit is also faring well. Add.

●   Muthoot Finance, which serves 2 lakh clients per day, presented a good Q3 results. With a capital adequacy ratio above 25%, this stock is a good investment bet.

●   With the automobile industry on an upswing, JBM Auto, an auto components manufacturer, managed to overcome all hurdles in the lockdown. Its better working merits investment.

●   Digispice Technologies, owner of Spice Money, recommended about Rs.22 a month back now trades around Rs.60. As stated earlier, this stock may turn out a 100 bagger. Hold and add more at declines for multifold returns in the short to medium term.

●   V2 Retail came out with excellent Q3 results. This retail stock is a dark horse compared to VMart and D’Mart. Around Rs 145, it’s going cheap. Buy at every decline as it can appreciate 100% from the current level.

●   *Goldiam Internationa*l’s quarterly EPS of Rs.20 makes it a compelling investment idea. It has Rs.300cr. cash against a market cap of just Rs.500cr. and may be the next Vaibhav GLobal. Veteran investor, Ramesh Damani, holds substantial stake in it.

●  Manali Petrochemicals nearly doubled its topline with a Q3 EPS of Rs.5. This only integrated manufacturer of polyols trades cheap at Rs.50 and has the potential to double from current levels.

●   Mangalam Cement from the Birla group posted Q3 EPS of Rs.15. As Century Textiles and Kesoram trade at a substantial premium, a PE multiple of 10x can take its stock price to Rs.500 from the current Rs.265 level. Sachin Bansal holds about 7% stake in it. Will it repeat the magic of JK Tyre after his entry in it? Buy for a 100% gains.

●  * Visaka Industries, Hemisphere Properties and Acrysil India* recommended two weeks back have appreciated between 20-30%. Safe traders can book profits and re-enter at lower levels.

●  RTS Power, manufacturer of transformers, cables, conductors and galvanised steel wire has notched 483% higher net profit in Q3FY21 is expected to maintain the EPS of Rs 12 in FY21. A reasonable P/E of 7 can take its share price to Rs 84 in the medium term. Accumulate.

●   Indian Bank, which amalgamated Allahabad Bank into itself, has notched Q3FY21 EPS of Rs 4.7, 9MFY21 EPS of Rs 12.6 and can notch FY21 EPS of Rs 18+. A reasonable P/E of 10x can take its share price to Rs 180 mark. Buy.

●   Shakti Pumps, pioneer of energy-efficient pumps & motors and solar energy operated pumps has posted Q3FY21 EPS of Rs. 14.4 and Rs. 24.5 in 9MFY21 and is set to end FY21 with an EPS of Rs 42+ and Rs 60 in FY22. The share may touch Rs 750.

● Swelect Energy System’s, a leading Solar Power Systems company in the global energy market, has posted 68% higher Q2 EPS of Rs 6.7 and 740% higher H1FY21 EPS of Rs 14.3. It has cash/investments of Rs 390 cr. and share book value of Rs 472. A reasonable P/E of 12x can take its share price to Rs 300 mark on likely FY21 EPS of Rs 30. Buy.

●   Indian Metals & Ferro Alloys posted 610% higher Q3 EPS of Rs 12 and Rs 37 for 9MFY21, which could lead to FY21 EPS of Rs 50+. Strong operational performance & healthy markets helped boost profits. Any imposition of export duty on chrome ore by South Africa will have a positive impact on ferrochrome prices. Accumulate.

●   Sree Rayalaseema Hypo Strength, manufacturer of organic and inorganic chemicals and major producers of calcium hypochlorite and stable bleaching powder and having a 10 MW of power plant and 11.25 MW of wind power, has posted Q2FY21 EPS of Rs 9.4 and Rs 17.3 for H1FY21. It may notch FY21 EPS of Rs 35+ and the share may double from the current level.

●   Eldeco Housing posted 90% higher Q3 EPS of Rs. 88 against Rs 80 in Q2FY21 and 9MFY21 EPS of Rs 204, which may lead to FY21 EPS of Rs 300 on its equity of Rs 2 cr. With robust projects, this share which made a life-time high of Rs 2694 on 29 Jan 2018 is expected to touch Rs 3500+ mark. Buy.

●  Refex Industries engaged in the material handling of coal ash and a specialist manufacturer and re-filler of Refrigerant gases particularly non-Ozone depleting refrigerant gases to replace Chloro-fluoro-carbons (CFCs). With Q2FY21 EPS of Rs 7.6 and Rs 10 in H1FY21, FY21EPS of Rs 25 is likely. Accumulate for 40% gain.

●   MNC with 75% foreign holding, Ineos Styrolutions India has notched Q3FY21 EPS of Rs 58.6 and Rs 67.6 in 9MFY21. With robust demand and high prices, strong margins may lead to mind-blowing FY22 EPS of Rs 200+. Buy for decent gains.

●  Battery and flashlights maker, Eveready Industries raked 180% higher Q3 EPS of Rs 6.7 and 48% higher 9MFY21 EPS of Rs 18 and may post FY21 EPS of Rs. 28. The Burmans of Dabur have hiked their stake to 19.3%. Buy for 30% gain.

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Bulls & Bears: D Street Signals

Wassup & down in the Street

MONEY TIMES TALK - FEBRUARY 20, 202

•            As cautioned earlier, DHFL shareholders are unlikely to get anything on its takeover by the Piramal group. Uninformed investors must stay away from this operator controlled counter.

•            Amber Enterprises, manufacturer of consumer durables with 25% market share in room air conditioners, is fancied after the recent ban on to imported ACs. Although its share price has run up, it is still a very good long term buy.

•            Rama Phosphates has expanded capacities via two new facilities and is likely to post FY21 EPS of about Rs. 24. Its share is available at a PE of less than 5 v/s industry PE of 11.9. The P/BV is around its CMP of Rs. 108. Buy immediately.

•            An Ahmedabad based analyst recommends to buy Alpa Lab, Andhra Petro, Fiberweb, Gallantt Metal, G G Enggineering, ITD Cementation, Ind Swift Lab, Maan Aluminium, Madhav Marbles Granites, Morepen Labs and Vls Finance

•            Defence major, HAL’s Q3FY21 NP doubled to Rs 853.27cr. v/s Rs. 425.31cr. in Q3FY20 and its EPS jumped to Rs.25.52 from Rs. 12.7. The Rs. 48,000 cr. order for 83 Tejas Light combat aircrafts will boost its profitability further. Buy on every decline.

•            Grasim’s Q3 profits soared 107% to Rs.2152 cr. on 13% higher revenue of Rs. 20,986 cr. on the back of higher consumer demand. It now plans to enter the lucrative paint industry. A very good long term buy.

•            Good times for SAIL. Increased demand, improved margins due to operational leverage and good management are expected to fuel further growth. Right time to buy.

•            Balaji Amines, which doubled Q3 profits with EPS of Rs. 47.44 v/s Rs. 22.83 in Q3FY20, will benefit from our anti-China stance. Its 9MFY21 profit has already surpassed FY20 EPS of Rs. 32.4. An excellent buy at current rates.

•            Tata Steel delivered its best quarter and surpassed its Q3 targets by a whopping margin. The company is confident of reducing its gross debt by over Rs. 12,000 cr. in Q4. Invest.

•            Innerwear major, Lux Industries, posted an excellent Q3FY21 EPS of Rs.22.10 v/s Rs. 13.24 in Q3FY20. Its 9MFY21 profit too was way ahead of 9MFY20 and it will gain by the amalgamation of JM Hosiery (an erstwhile NCLT case). Buy with a horizon of two years.

•            Kalpataru Power’s excellent Q3FY21 with profits surpassing Rs. 204 cr. v/s Rs. 175 cr. and its Brazilian subsidiary set to acquire the controlling stake in FasttelEngenharia makes it a worthy investment for two years.

•            Bharat Dynamics plans to make Anti-tank Guided Missiles for the Indian Army and for exports. Its long term prospects are excellent. Buy.

•            Aurobindo Pharma to shift focus to fermentation based API business for which most Indian drug manufacturers depend on China. An excellent long term bet. Buy.

•            Bank of Maharashtra may be divested soon. With improving profitability on the back of operational efficiency, higher NIM, better CASA ratio and lower NPAs, this share can bounce back fast if it comes into stronger hands. Buy.

 

•            Uflex Ltd declared excellent Q3 results and is faring equally well in the current quarter. The share is available 40% below its trailing book value of Rs. 650. An excellent share to buy.

•            Affle, the largest Indian mobile marketing platform, is going great guns. With low equity capital and high growth potential makes it a great buy for multi-bagger gains in three years.

•            Specialty chemical giant, Kanchi Karpooram has doubled from the price recommended by Money Times a few months back. Restrictions on imports from China is expected to give it a further boost and a bonus issue is not ruled out. Add.

•            PTC India has restarted its upmove. In spite of a week market, this share is going up. A big dividend is on the cards. Add.

•            Granules India wins USFDA approval for potassium chloride capsules for treatment of hypokalaemia and related cardiac arrhythmia. With presence in over 60 countries and profitability on the rise, add at every decline.

•            Wipro’s 5-year strategic partnership with Telefónica (Germany) will transform its Business Support Systems to offer superior customer service in the B2B market segment. This investor friendly share deserves a place in every portfolio.

•            Savita Oil Technologies has announced a buyback at Rs. 1400 per share, which is much above the CMP. The share price is likely to witness a big jump in coming days. Buy immediately.

•            J K Tyre declared an excellent Q3FY21. Its share has corrected from Rs. 145 to Rs. 122, which provides a good opportunity to investors to enter again. Buy.

•            The promoters of Indusind Bank have converted their warrants and have invested around Rs. 2000 cr. This shows their confidence in the company. A good long term buy.

•            NSE listed Sundaram Finance Holdings is the demerged non-financial services entity of Sundaram Finance Ltd. The stock trades cheap at Rs.76 given that it holds investments in the listed and unlisted arms of the TVS group like Sundaram Clayton, IMPAL, Wheels India, Axles India, Brakes India, etc. Ace investor, Radhakishan Damani, holds close to 26 lakh shares in it. A sure-shot multi-bagger.

•            With investments in group companies like Rane Madras, Rane Brake, and Rane Engine, -Rane Holdings also has its own auto ancillary Rane NSK Steering and Rane TRW Steering etc. This stock trades cheap at Rs.600 and can easily appreciate 50%.

•            With US retailers adopting the ‘China+1’ strategy, Indian textile units posted a good Q3. Indo Count Industries with many US retailers as its client can record good traction good forward. It posted the highest ever Q3 revenue with an EPS of Rs.5. The stock trades cheap at Rs.124 and can easily appreciated 50%.

•            Goldiam International recommended at Rs.250 last week rose near 40% to make a new 52-week high of Rs.354 but fell to levels of Rs.310 in the weak market. Buy at every decline for multibagger returns. Its retail website JEWELFLEET.COM is doing well in the US retail markets.

•            Spencer’s Retail strengthened its retail footprint on takeover of Nature’s Basket from Godrej. But the stock trades cheap at a market cap of Rs.700 crore. Other group companies such as CESC, Saregama, Phillips Carbon, etc seem to be doing extremely well. Given the raging bull market and Big Bazaar almost out of the running, the stock can appreciate 50%.

 

•            Schneider Electric introduced the first software centric industrial automation system in India – a business estimated to record incremental growth of $2.58 billion during 2020-24. Schneider posted 11 % higher Q3 Net profit and gave a strong commentary. The stock can give good investment returns. Buy for a target of Rs.200.

•            Aditya Birla Capital is a basket of NBFC, Housing Finance, AMC, Life insurance and Health insurance. It posted 15% PAT growth YoY and sounded very bullish about the future as each business segment achieves scale and high profitability. Buy for a target of Rs.250.

•            JSW Energy has ventured into renewables with its first 810MW hybrid project. Its focus on renewables opens medium term growth plan for the company. The company generates healthy cash flow. Buy for a target of Rs.95.

•            Inclusion of gas in GST will reduce its cost by 10-15% as companies can claim input credit. This will make gas more competitive and many companies will switch to gas. Increased demand from industrial consumers will benefit Petronet LNG, which is trading at 16x FY19 PE and is below industry multiples. Buy for a target of Rs. 340.

•            Capacite Infraprojects’ guidance of Rs. 20000 cr. revenue with EBITDA margin of 18% is strong and positive. The uptick in private real estate and rise in share of government orders and ramping up of projects makes this infra stock very attractive at current levels. Buy for a target of Rs. 290.

•            Jindal Poly Films has notched 63% higher EPS of Rs 45 in Q3FY21 and 69% higher EPS of Rs 128 for 9MFY21. This could lead to an EPS of Rs 175-180 in FY21. A conservative P/E of even 5 can take its share price to Rs 875-900 in the medium term.

•            Nile Ltd., pioneer in organized eco-friendly Lead Acid Battery Recycling for over two decades, has posted Q3FY21 EPS of Rs 20 and 9MFY21 EPS of Rs 27. It may post an EPS of Rs 50 in FY21 and Rs 75 in FY22. Buy for 30% gains.

•            Indo Thai Securities serving corporate clients, affluent individuals and retail investors through over 60 locations has notched Q3FY21 EPS of Rs 5 and Rs 10 in 9MFY21, which could take its FY21 EPS to Rs 15. A conservative P/E of 5x can take its share price to Rs 75.

•            Integrated steel manufacturer, Sarda Energy has notched 174% higher EPS of Rs 32 in Q3FY21 and 48% higher EPS of Rs 65 in 9MFY21 which could lead to an EPS of Rs 100+ in FY21. Buy for 40% gain.

•            Aanta Soya manufactures cooking media with bakery application products for blue chip clients like Britannia, Goodrich, Parle, Priyagold, Pepsico, ITC, Sungold, Haldiram etc. It notched 250% higher EPS of Rs 4.8 in Q3FY21 and 93% higher EPS of Rs 15.7 in 9MFY21, which could take its FY21 EPS to over Rs 21 and to Rs 25-27 in FY22. Buy for 50% gain.

•            IZMO Ltd., formerly Logix Microsystems, a global leader in interactive marketing solutions offers hi-tech automotive e-retailing solutions in North America, Europe, and Asia has notched 36% higher EPS of Rs 6.3 in Q3FY21 and 179% higher EPS of Rs 16.5 in 9MFY21, which could take its FY21 EPS to Rs 23-24. The share may double in the medium term. Buy.

•            Godawari Power & Ispat completed the expansion of the rolling mill and iron ore beneficiation plant in Feb 2020 and posted Q3 EPS of Rs 46 in and Rs 88.4 in 9MFY21, which may lead to FY21 EPS of Rs 120+. The share is expected to advance by 40% going forward. Buy.

 

•            Deccan Cements, manufacturer of a wide variety of cements, has posted 725% higher Q3 EPS of Rs 24 and 56% higher EPS of Rs 66 for 9MFY21, which could take its FY21 EPS to Rs 90 on its small equity of Rs 7 cr. This share, which made a life-time high of Rs 1280 on 28 April 2017, is poised to double in the medium-to-short term. Buy.

•            Kirloskar Oil Engines, the market leader in engines for construction equipment, has notched 44% higher EPS of Rs 4.6 in Q3FY21 is expected to garner FY21 EPS of Rs 13. Some analysts target its share price over Rs. 200 in the medium term. Accumulate.

•            Nava Bharat Ventures manufactures ferro alloys in India, Europe, Middle East, South East Asia and Africa. It posted Q3 EPS of Rs 7.3 and Rs 18 for 9MFY21, which may lead to FY21 EPS of Rs 24. The share is expected to fetch a decent gain of over 40% in the medium term. Buy.

•            Vindhya Telelinks, which is into cables and EPC business, has notched Q3 EPS of Rs 48 and Rs 130 in 9MFY21, which could lead to FY21 EPS of Rs 180. It has sizeable stake in Birla Corporation and Universal Cables too. The share trading at a forward P/E of 4.6x can double. Buy.

•            Coral Laboratories with 2 decades in manufacturing pharmaceutical formulations, nutraceuticals, OTC and herbal medicines has notched 106% higher Q3 EPS of Rs.13 and 324% higher 9MFY21 EPS of Rs 33, which could take its FY21 EPS of Rs 50. A reasonable P/E of 10x can take its share price to Rs 500 in the medium term.

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