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Stock Market Tips for the week

Presenting MONEY TIMES TALK for the week beginning December 12, 2021
 
🍓 NMDC is to pay Rs.9 interim dividend. Value unlocking is certain as its steel division is de-merged with FY22 EPS of Rs. 38 + and final dividend of around Rs. 5 is likely. The current BV of Rs. 120 may climb to Rs. 140 by year-end. Buy immediately.

🍓 Big movement is likely in Morepen Labs as the demand for its products is rising fast. The share is being tipped to double in a year from now. Add.

🍓 Defence stock, Apollo Micro Systems is set to post an impressive performance Q3 onwards and may end with FY22 EPS of Rs 12. A big spurt in its share price is likely with long term target of Rs 300. Stay invested and add.

🍓 The Watch list of a veteran marketman this week includes Ador Fontech, Acknit, Aro Granite, Exxaro Tiles, Godavari Drugs, Hubtown, Hindustan Hardy, IVP Ltd, Ind Swift Lab, Jasch Ind., KIC Metaliks, Lahoti Overseas, Lambodhara Textiles, NMDC, PBM Polytex, RTS Power, Rishiroop, SNL Bearings, Sarthak Metals, Steel Strips Infra, Simran Farms, Steel City Securities (only at NSE), Vedavaag, Vodafone idea and Windsor Machines.

🍓 Godrej Properties has tied up with the TDI group to develop an ultra-luxury residential project around Connaught Circus, New Delhi. Add.

🍓 Prestige Estate posted very good Q2 results with NP surging 27% on the back of sales at Rs. 2112 cr. It is launching several new projects. A good share to add.

🍓 International shrimp prices are rising. It may be prudent to add Apex Frozen Foods and Waterbase.

🍓 The government plans to divest Nalco in the next few months. A second dividend is also likely and its re-rating may follow. Buy for hefty gains.

🍓 Gravita, recycler of Battery lead, has attracted huge volumes and the share price too has crossed Rs. 240 in line with our recommendations. Add this potential multi-bagger.

🍓 Global brokerages are bullish on Reliance Industries expecting its new energy business to drive growth. Add.

🍓 DLF plans to launch projects worth Rs. 1800 cr. in the second half of this year. A good long-term investment.

🍓 Kiri Industries wins its long-drawn case in the Singapore Supreme Court which can result in a big inflows. Risk bearing investors may enter.

🍓  FIIs are lapping up big quantities of Sequent Scientific. Money Times recommended this share over a year back when prices around Rs. 54. Accumulate with a horizon of two years.

🍓 Volumes of YES Bank are soaring on news of a big bounce back in its working. Its card division too reported better business. Buy.

🍓 Honda Power India has started moving up this week due to renewed interest by big investors. With annualized EPS of 100+, it's one of the cheapest MNC stock. Strong long term buy.

•     Dilip Buildcon, an efficient infrastructure company, plans to float an infrastructure trust (InvIT) and expect to garner about Rs. 4000 cr. Add.

•     Jio-BP and M&M have signed an agreement to jointly develop electric vehicle-related products and services including EV charging solutions. Buy M&M.

•     Coal India looks attractive at around Rs. 150. It is one of the most cash-rich companies and a second bout of dividend is a distinctly possibility. Add.

•    Escorts is gradually venturing into uncharted territories and a share price of Rs. 2000+ is likely in the short term. Buy.

•    Reliance has hiked its stake in HFCL via the QIP route to 5% by investing Rs. 138 cr. confirming the booming opportunities in the 5G Sector. Start accumulating for handsome profits.

•    Hospital chains plan to increase treatment packages by 5 to 10% from January 22. Fortis and Apollo Hospitals can be big beneficiaries. Add.

•    Lyka Labs zoomed in line with our expectations last month but saw some profit booking last week. The upper circuit on Friday indicates that weak hands have exited as the share has started moving up again. Add.

•    The govt. plans to offer around Rs. 76,000 cr. over the next six years via the PLI scheme for setting up over 20 semiconductor design, component manufacturing, and fabrication units. Bosch Ltd. will be a big beneficiary. Add.

•    Ucal Fuel Systems supplies engine assemblies and machined components for automobiles, engineering and defence with subsidiaries in USA has notched 150% higher Q2 EPS of Rs 4.5 and H1 EPS of Rs 8.8 v/s minus Rs 4.8 in H1FY21, which could take FY22 EPS to Rs 20 from Rs 13.1 in FY21. Buy for 30% gain.

•    SAB Industries established in 1978 develops modern infrastructure with expertise in construction projects. It notched Q2 consolidated EPS of Rs 27.4 and H1 EPS of Rs 33, which could lead to FY22 consolidated EPS of Rs 50+. A P/E of just 5x can take its share price to Rs 250 mark. Buy.

•    Bajaj Steel Industries has posted 30% higher Q2 EPS of Rs 32 (FV Rs 5) and 50% higher H1 EPS of Rs 53.8, which could take FY22 EPS to Rs 160 as against Rs 126 in FY21. With its presence in USA, it was able to tap the US & continental markets and with its ongoing expansion, the share is poised to touch Rs 2000 at a P/E of 12.5x and is a likely bonus candidate. Buy.

•    Shree Ajit Pulp & Paper Mills with 1,08,000 TPA is one of the top recycled Kraft Paper manufacturers. It bought a paper unit from NR Agarwal Industries and initiated expansion and earned 33% higher Q2 EPS of Rs 11 and 211% higher H1 EPS of Rs 27.4, which may take FY22 EPS to over Rs 63 against FY21 EPS of Rs 46. A reasonable P/E of 10x can take its share price to Rs 630. Buy.

•    50 year old Beekay Steel manufactures quality steel products like sections, bright bars, structurals, TMT bars, Spring Steel and crane rails etc. across four plants. It notched 83% higher Q2 EPS of Rs 16.1 and 282% higher H1 EPS of Rs 42.6, which could take FY22 EPS to Rs 85 from Rs 41.4 in FY21. A reasonable P/E of 8.5x can take its share price to Rs 722 going ahead. Buy.

•    GNFC manufacturing fertilizers (32%) and chemicals (68%) has posted over 1000% higher Q2 EPS of Rs 15.6 and 265% higher H1 EPS of Rs 33.9, which could lead to FY22 EPS of Rs 62 against Rs 44.9 in FY21. The share with a lifetime high of Rs 548 in 2017 can touch Rs 600 mark. Buy.

•    Him Teknoforge, a manufacturer of quality forgings and machined components and a Tier-1 supplier to top Automobiles, E-Vehicles, OEMs, Railways, Defence, Aftermarket and Exports has posted 43% higher Q2 EPS of Rs 4 v/s Rs 2.8 and H1 EPS of Rs 7.7 v/s minus Rs 2.3 in H1FY21, which could take its FY22 EPS to Rs 15 from Rs 6.5 in FY21. The share could cross the Rs 150 mark. Buy.

•    OIL India, the second-largest PSU in oil & gas exploration and production, has notched 29% higher Q2 EPS of Rs 10.6 and 86% higher H1 EPS of Rs 20.3, which may take FY22 EPS to Rs 45 against FY21 EPS of Rs 37.5. Buy for 30% gain.

•    KIC Metaliks’ Mini Blast Furnace capacity of 1,65,000 TPA of pig iron for manufacturing hot metal has notched Q2 EPS of Rs 3 (FV Rs 2) v/s Rs -0.5 and H1 EPS of Rs 6 v/s –Rs 1.9, which could take FY22 EPS to Rs 15 against FY21 EPS of Rs 2.8. The share may double from the current level. Buy.

•    Shyam Metalics & Energy, an integrated metal producer, is expanding capacities and reduced its loan by Rs 469 cr. in H1. It posted 156% higher Q2 EPS of Rs 16.1 and 262% higher H1 EPS of Rs 35.4, which may take its FY22 EPS to Rs 75. A reasonable P/E of 7x could take its share price to Rs 525. Buy.

•    SMC Global is a one-stop investment solutions co. serving over 18 lakh investors in 500 cities in India and abroad with Rs 3000 cr. turnover. SMC has notched 85% higher Q2 EPS of Rs 3.6 and 44% higher H1 EPS of Rs 5.9, which could take FY22 EPS to over Rs 14 from Rs 8.9 in FY21.. Buy for 30% gain.

•    Debt-free Seshasayee Paper, which is undertaking capex, has notched 48% higher Q2 EPS of Rs 4.6 and 25% higher H1 EPS of Rs 7.9, which can lead to FY22 EPS of Rs 22 against Rs 17.7 in FY21. The share may cross the Rs 220 mark.

•    The 5G rollout and recent acquisition of Tejas Networks by the Tata Group make it a compelling buy for 50% appreciation from the current levels. Ace investor, Vijay Kedia, still holds 3.42% stake in it.

•    Manali Petro is safe investment given its ridiculously low P/E ratio. It should reap in a few more good quarters of record profits and the downside risk is very limited in case of a market fall. A good stock for 50% appreciation.

•    Parsvnath Developers seems to be rising from the ashes. The stock that once traded at Rs.300+ looks good at Rs.22 levels. The promoter holds close to 70% stake in it and the litigations about its land in Delhi seem to be over. The stock can turn out to be a multi-bagger.

•    GIC has bought 15% stake in IRB Infra at Rs.212. With a maximum downside risk of 10%, one can buy the stock at Rs.223 for a safe 50% return from the current levels.

•    Considering Lyka Lab’s FY22 EPS of Rs.25+ post IPCA’s takeover, a conservative P/E ratio of 25x would take the stock to Rs.500. Buy on every decline for multi-bagger returns.

•    Manali Petro is safe investment given its ridiculously low P/E ratio. It should reap in a few more good quarters of record profits and the downside risk is very limited in case of a market fall. A good stock for 50% appreciation.

•     Asian Granito leading manufacturer of Tiles of Quartz, Marble etc. across 9 plants with capacity of 30 million sq.mtrs.is now focused on boosting exports. The stock trades at a PE multiple of just 7x v/s the industry average of 40x. It has the potential to double in a year.

•     HCC recommended here has given 70% returns within 1 month.

•    Generic Pharmasec is upgrading the Point of Care diagnostics at the Reliance group of Hospitals in Mumbai, Jamnagar, Bharuch, Surat and other centres. This order is a game changer for the company.

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