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Buy, Dump or Hold

Stock Market Tips for the week

Money Talk, courtesy MONEY TIMES 

Readers are advised to exercise caution while investing as stock market movements are unpredictable  - Editor

🍓 JBM Auto has bagged an order from Delhi Transport Corpn. for supply, operation and maintenance of 200 EV busses, under its Fame II EV Policy. More such orders are likely. A good buy.

🍓 Balrampur Chini, one of the large sugar mills, posted 6% higher Q2 PAT of Rs 83 crore despite a 5.9% fall in total revenues to Rs. 1213 crore as compared to Q2FY21. Add.

🍓 Motherson Sumi, a specialised automotive components manufacturer, is raising Rs. 1000 cr. by unsecured NCDs to meet growing business requirements. Its Q2 profits rose sharply and indicates its better business prospects. Add.

🍓 Wockhardt, a research-based pharma and biotech co., posted a stellar Q2. Consolidated NP zoomed to Rs. 34 cr. from Rs. 4 cr. in Q2FY21. It won 4 patents during the quarter and has a total of 770 patents under its sleeves. Accumulate.

🍓 As per veteran marketman, the market will now be stock specific. Companies that posted good results and have good potential for growth will go up. Inflation is matter of concern and if it spins out of control, RBI will be forced to raise interest rates. Be careful, be stock specific and be watchful.

🍓*KarurVysya Bank’*s Q2 PAT rose 44% YoY to Rs 165 cr. The total NPAs now stand a Rs. 3971.64 cr. as against Rs.4167.49 crore as on 30 June 2021 and Rs 3998.43 crore as on 30 Sept 21. Accumulate.

🍓 *Britannia’*s Q2 net profit slipped 23% to Rs. 384 cr. because of rising crude palm oil prices and packaging materials. The share price slipped to Rs. 3621 from its recent high of Rs. 4162. The Company is a strong FMGC play and the dips may be used to add.

🍓 Gems &Jewellery major, Goldiam International, clocked Q2 revenue of Rs. 174.84 cr v/s 88.25 cr in Q2 of last year, resulting in a higher EPS of Rs. 8.85 on its Rs. 5 FV share. The half yearly EPS of Rs. 19.41 is considered very good compared to FY21 EPS of Rs. 30.26. Buy.

🍓 CRISIL posted 25% surge in Q2 NP to Rs. 113cr. on 17% higher income of Rs. 570.96cr. Buoyancy in the capital market and pick-up in economic activity will help it post better earnings in future. Add in small quantities.

🍓 Innerwear major, Page Industries (JOCKEY brand) posted 45% higher Q2 PAT of Rs 161 crore YoY. Sales momentum is also picking up. Add.

 

🍓 PNB reported sharp recovery in collections of bad loans. This is a good sign for the bank and it makes sense to start accumulating.

🍓 TVS Motors, third largest 2-wheeler maker, is in talks to raise up to $ 500 mn. for its EV subsidiary to give it scale and flexibility. The company is also scouting for a strategic partner. A good long term bet.

🍓 Bank of Baroda’s NP jumped 24% on the back of drop in provisions and higher other income. Its CEO, Sanjiv Chadha, reiterated that the worst is over and its asset quality will only improve with time. A good time to add BOB.

🍓 L&T looks strong on the back of huge orders especially from the infrastructure, hydrocarbon and defence orders. This evergreen company is still underpriced. Buy.

🍓 Union Bank of India recommended 6 weeks ago has given stellar returns of 40 percent. From CMP of Rs 50 it has potential to double compared to similar numbers posted by Indian Bank. Strong Buy.

🍓 GE Power traded volumes have been steadily increasing after superb results posted by the Company. It shows that this share is being accumulated by FIIs, DIIs and Mutual Funds since past 2 weeks. It's potential to be a multibagger is sure with 3 to 4 times returns. Buy for Long term.

🍓 Karnataka Bank is moving its head office in next 2 years from existing 1.3 Lakh sq ft space to 2.3 Lakh sq ft. in Mangaluru city. It's Management growth potential can be analysed and the free space would probably be sold or leased to others. Excellent Buy.

  • Muthoot consistently posts improved performance. The latest financial results too point a big jump this year. A good buy in times of turmoil.
  • The govt. has raised the price of ethanol to woo sugar industries to enhance production. Praj Industries, the engineering giant that makes machinery for making ethanol, will be one of the biggest beneficiaries. Add.
  • Most brokerages are bullish on the  M&M stock. Its SUVs will pick up and the small slackness in tractor sales will not hamper profits. The share is slowly rising. Accumulate gradually.
  • NALCO posted an excellent Q2 with NP jumping to Rs. 760.22 cr. from Rs. 107.27 cr. in Q2FY21. This translates into an EPS of Rs. 4.07 v/s Re. 0.57 last year. An interim dividend of Rs. 2 has been declared. Since the demand for aluminum continues to rise, this share can double in a year’s time. BUY immediately.
  • Hindalco’s Q2 stunned investors with a 783% rise in NP from Rs. 387 cr last year to Rs. 3417 cr. on the back of exceptional performance by all divisions. A must buy share.
  • Yes Bank is expected to post much better results this year. Around Rs. 13 this share looks a good bet. Add.
  • Gujarat Fluorochemicals  made investors happy with the big jump in EPS of Rs. 18.66 v/s Rs. 7.21 YoY. Good reason to add.
  • Mayur Uniquoters, maker of artificial leather for furnishing and footwear, posted bumper Q2 results with consolidated NP rising 48% to Rs. 29.52 cr. on a 77% rise in total revenue to Rs.196 cr. The consistency in its profits over years merits a buy.
  • SMC Global, a well-diversified financial services co. serving over 18 lakh investors in 500 cities with turnover of over Rs 3000 cr. has notched 85% higher Q2 EPS of Rs 3.6 in and 44% higher H1FY22 EPS of Rs 5.9 as against FY21 EPS of Rs 8.9, which could lead to FY22 EPS of Rs 14 +. Buy for 40% gain.
  • Shyam Metalics & Energy, an integrated steel producer is expanding capacities having notched 156% higher Q2 EPS of Rs 16.1 and 262% higher H1FY22 EPS of Rs 35, which could take its FY22 EPS to Rs 75. A reasonable P/E of 10x could take its share price to Rs 750. Add.
  • JBM Auto has won an order for 200 Fully Built Low Floor Electric AC Buses from Delhi Transport Corporation under Govt. of India’s Flagship Fame II (Faster Adoption and Manufacturing of Electric Vehicle) Policy. Buy for long term.
  • Lyka Labs, manufacturer of pharma formulations and Active Pharmaceutical Ingredients, is expanding its lyophilised capacity by 50% having notched Q2 EPS of Rs 10.4 against –Rs 2 and H1FY22 EPS of Rs 17.2 against -4.1 YoY. This could lead to FY22 EPS of Rs 38+. Buy for 50%
  • India Glycols, lead producer of mono ethylene glycols/oxides, is setting up two new distilleries with ethanol manufacturing. It notched 1550% higher Q1 EPS of Rs. 65 and may clock FY22 EPS of about Rs 200. The share can fetch hefty gains in the medium to short term. Must in every portfolio.
  • Talbros Engineering, leading manufacturer of Axle Shafts for Vehicles, has posted 94% higher Q2 EPS of Rs 12.2 and 314% higher H1FY22 EPS of Rs 18.6 against FY21EPS of Rs 21.2,which could lead to FY22 EPS of Rs 40. The share could touch Rs 480 in the medium term. Buy.
  • J. Kumar Infraprojects, an EPC company in construction of urban infra projects including Metros, Flyovers, Bridges etc. has notched 478% higher Q2 EPS of Rs 5.4 and 634% higher H1FY22 EPS of Rs 9.7 as against Rs 8.4 in FY21. This could take its FY22 EPS to Rs 22. Buy for 30% gain.
  • Nahar Industrial Enterprises, a vertically integrated textile manufacturer having a sugar unit with 2500 TCD has posted Q2 EPS of Rs 8.8 v/s – Rs 5.1 and H1FY22 EPS of Rs 17.6 against – Rs 2.3 in FY21. This could lead to FY22 EPS of about Rs 35. Buy for 30% gain.
  • KIC Metaliks’ 1,65,000 TPA pig iron manufacturing built on TATA Korf Technology and annular Sinter Plant has notched Q2 EPS of Rs 3 (FV Rs 2) v/s Rs -0.5 and H1FY22 EPS of Rs 6 v/s –Rs 1.9 against FY21 EPS of Rs 2.8. This could take FY22 EPS to Rs 15. The share may double from the current level.
  • OIL India, the second-largest hydrocarbon exploration and production PSU has notched 29% higher Q2 EPS of Rs 10.6 and 86% higher H1FY22 EPS of Rs 20.3 against FY21 EPS of Rs 37.5. This may take FY22 EPS to Rs 45. The share can fetch a decent gain of about 30%. Buy.
  • Bank of India with 5108 branches5551 ATMs and presence in 18 countries and NPA of 2.8% only with CASA of 39.5% has clocked 65% higher Q2 EPS of Rs 2.8 and 19% higher H1FY22 EPS of Rs 5 against Rs 6.4 in FY21. This could lead to FY22 EPS of Rs 12. The share is poised to advance by over 30%. Buy.
  • Bajaj Steel Industries perhaps the only company in the world producing machinery for all cotton ginning technologies has posted 30% higher Q2 EPS of Rs 32 (FV Rs 5) and Rs 50% higher H1FY22 EPS of Rs 53.8. With a bumper H2 as usual, it may post FY22 EPS OF Rs 160 and the share may touch Rs 2000 at a PE of 12.5x. A bonus candidate. Buy.
  • Ind-Swift Labs has notched 141% higher Q2 EPS of Rs 4.1 and 192% higher H1FY22 EPS of Rs 7.3 v/s – Rs 0.5 in FY21. This may take FY22 EPS to Rs 15. Buy for short-term gain as it will take some time for the group to win back investor confidence.
  • Finolex Cables has steadily diversified into electrical appliances and lighting products and is giving tough competition to established brands like Havells. The stock is available at a P/E multiple of 15x whereas Havells trades at 50x. Buy at every decline for 100% gains.
  • Lumax Auto Technologies posted an excellent Q2 with both the topline and bottom-line rising almost 50%. It is the sole supplier for auto lighting, air intake systems, seat frames, auto gear shift levers to top cars like XUV700, Tata Nexon and Punch, Skoda Kushaq. Big Daddy Minda Industried trades at a mktcap of Rs.26000 cr. whereas Lumax is available at a mktcap of less than Rs.1000cr. Sure to double!
  • BSE-listed  Andhra Petrochemicals, a debt-free co. came out with excellent Q2 numbers with an EPS of Rs.10. The govt. has imposed an anti-dumping duty for 5 years on the products it manufactures for the textiles, food and healthcare industries. At Rs.140, there’s nothing to lose as the stock can give a quick 50% gain.
  • Cerebra Integrated, India’s largest recycling and refurbishment company, is faring well. With clients like Dell, Daikin, Amazon, Epson, Apple, Huawei, IBM, LG,etc., the stock trades cheap at a market cap of less than Rs.1000 cr and has a long way to go from here.
  • An analyst tracking the pharma space expects  RPG Lifesciences and Lyka Labs to grow exponentially in the coming years and sees their stock price doubling from the current levels. Buy at every decline.
  • KCP Sugar & Industries Corp. has recorded impressive Q2 results with Net Profit of Rs 8.56 cr. in against a loss of Rs 4.67 cr in Q2FY21. It deserves a Buy call.
  • Vedavaag Systems has recorded good Q2 results with 53.67% growth in revenues and 59.6% growth in Net Profit YOY. The share available at just Rs 58.30 deserves a Buy call for multi-bagger returns over an year.
  • Renaissance Global into gold & diamond jewellery is undergoing transformation and venturing into retail. Tremendous scope since the industry is moving at great speed.
  • Electric Controls is a supplier to Lakshmi Machine Works (LMW). It may be a good idea to ride the textile boom through this co. as it holds shares in LMW.
  • Sugar industry is under transformation and Dwarikesh Sugar is a good stock to hold. Investors can also opt to buy Morarka Finance, which holds almost 80% in Dwarikesh Sugar.
  • Tilaknagar Industries, maker of Mansion House Brandy and other IMFL brands, is a turnaround candidate. Its promoters have released the pledge on 1.5mn shares or 1.11% stake. Co. has fulfilled its debt obligations and signed a 10-year deal with alcohol-beverage giant Pernod Ricard and shifted to an asset light model. It plans raise funds for working capital facilities. This counter can be 5 bagger to 10 bagger in the long term.
  • Jagsonpal Pharma’s 117% jump in H1FY22 net profit of Rs.14.16 cr. v/s Rs.6.53 cr. in H1FY21 led to an attractive interim dividend of 80%. It has huge reserves of Rs.112.51 cr. on its small equity of Rs.13.10 cr. and the promoters hold 70.34% stake. In August, it launched two formulations and got very good response from the market. Buy for good returns in the medium to long term. Technically, if it crosses its 52 week high of Rs.203, it can rise to Rs.225+.
  • Pooja Entertainment is a pioneer in creating content for Indian cinema and has a large content library & a strong distribution network. It posted consolidated Q1 EPS of Rs.16 and has many big ticket films lined up and is also working on content for various OTT platforms. This company boasts of a strong bala

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