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D Street Signals For This Week

What to buy or sell

What to buy, sell or hold this week - Money Times tips

  • Dr. Reddy’s Labs has received nod from DRDO for its new anti-Covid drug. A big positive for this company. Buy.
  • GE Shipping posted an excellent FY 21 with an EPS at Rs. 62.38 v/s Rs. 13.91 in FY20 and declared 90% dividend. The rising Baltic freight index translates into rising freight rates. A good long term share to add.
  • HFCL posted a stellar Q4 with NP rising exponentially to Rs. 84.67 cr. v/s Rs. 5.78 cr. last year. The management is optimistic on the back of growing demand from Indian and overseas markets. Buy and retain for 2 years.
  • Interglobe Aviation (Indigo Airlines) plans to raise Rs. 3000 cr. via QIP. It is one of the fastest growing low-cost carriers in the world and can be bought selectively with strict stop loss limits.
  • Neuland Laboratories posted Q4 profit of Rs. 17 cr. against a loss of Rs. 9.3 cr. in Q4FY20 due focus on complex APIs and the CMS business. The co. will continue this sustainable growth.
  • Granules India posted 38% rise in Q4 NP at Rs. 128 cr. on 33% rise in revenue to Rs. 799 cr. It also made some new launches and more products are in the pipeline. Add.
  • Huhtamaki India’s Q1CY21 PAT fell 41% YoY to Rs. 16.7 cr. from Rs. 27.31 cr. in Q1CY20. Although the packaging industry is faring well, these results are disappointing. Investors advised to exit.
  • Linde India’s Q1CY21 PAT spurts to Rs 303 cr. from Rs. 39.03 cr. in Q1CY20 on the back of frantic oxygen demand in the current Covid-19 pandemic.
  • Saregama, which is into entertainment including regional and Indian films and songs posted 151% higher Q4 NP at Rs. 37 cr. The company expects the performance to continue. Add.
  • ITDC Cementation has won a Rs. 950 cr. order from GoI for roads & bridges, drainage, waste management and sewage plants, etc. A positive for the Company. Add.
  • Mucomycosis, also called black fungus, threatens patients recovering from Covid as it can cause loss of vision and even death. Gufic Biosciences’ Lypobampoterech helps to cure this disease. A big jump is price in its share is imminent. A screaming buy.
  • Although the near term demand can be under pressure, Kansai Nerolac can be a key beneficiary of the recovery in decorative and industrial paints. A good long term bet. Add.
  • Navin Fluorine is confident of notching higher sales and long term contracts in the high value segment. The share price may continue its onward march. Accumulate.
  • The Union government has approved Rs. 18100 cr. PLI sops to battery manufactures to cut reliance on imported products. Amararaja Batteries can be a big beneficiary. Buy.

 

  • Cairn India, a Vedanta group company, has kickstarted oil exploration in Rajasthan’s Aishwaria Barmer Hills and expects this facility to grow at 20% CAGR for some years. Add.
  • Asain Paints’ Q4 NP jumped 81% to Rs. 869.69 cr. on 44% higher revenue of Rs. 6651.43 cr. The company is also ramping up its production capacities. This share is an evergreen buy and deserves to be in every portfolio.
  • UPL’s Q4 NP jumped 74% to Rs. 1361 cr. on 14.83% rise in revenue to Rs. 12,796 cr. The forecast of a normal monsoon will contribute for higher sales & profit. An excellent buy.
  • Although analysts were skeptical about the auto ancillaries, Apollo Tyres Q4 NP rose 26% to Rs. 287.27 cr. on 38.7% rise in revenue to Rs. 4927.27 cr. Buy.
  • Pidilite’s Q4 NP soared 96.4% to Rs. 307.44 cr. on 45% jump in sales to Rs. 2235.52 cr. An excellent long-term investment.
  • Godrej Agrovet has acquired a stake in Astec Life Sciences. Long term prospects look good for both. Add both.
  • Voltas’ Q4 NP jumped 49% to Rs. 239 cr. The hot season that has just started will contribute to higher sales & profits in the near future. A good long-term investment.
  • MMRDA to value the Versova-Andheri-Ghatkopar metro line means money coming to Reliance Infra and help it clear its debts. Rising volumes and share price indicate better Q4 results. Buy for exponential gains.
  • Capital goods sector is back in action given the excellent numbers from SIEMENS. With the revival in the sector, BGR Energy Systems may turnaround in Q4FY21 and the stock has made the highest weekly closing since 27 May 2019. Technically it looks superb. A must buy for quick returns.
  • IOL Chemicals may announce a lower Q4 profit compared to the first 3 quarters due to a sharp decline in demand and in the rate of its main products Ibuprofen.
  • Shilp Gravures board meet is on 18 May. On Friday, 14 May, it hit a new 52-week high and is expected to post good results and an attractive dividend. A low risk, high profit investment.
  • Hyderabad stockbroker, B.N. Rathi Securities is faring well and likely to post FY21 EPS of Rs.8 with a higher dividend. Buy for a quick 30% gain.
  • Securities and Intelligence posted Q4 EPS of Rs 6.9 and FY21 EPS of Rs 25, which could rise to Rs 35 in FY22. It foresees key triggers in labour reforms, client preference to technology, and the opening up of economies post Covid-19. Buy for 30% gain.
  • Shree Ajit Pulp & Paper Mills, one of the top recycled Kraft Paper manufacturers, has posted Q3FY21 EPS of Rs 18.1 and Rs 27 for 9MFY21. This could lead to an EPS of Rs 40+ in FY21 on small equity of Rs 5.3 cr. A reasonable P/E of 10x can take its share price to Rs 400. Buy.
  • Angel Broking, India’s 4th largest stockbroking house with a market share of 6.3% has posted 229% higher Q4EPS of Rs 12.5 and 261% higher FY21 EPS of Rs 38.8 on its post IPO capital of Rs 81.8 cr. A likely FY22 EPS of Rs 45 and a P/E of 12.5x can take its share price to Rs 562. Buy.

 

  • Deccan Cements manufactures a wide variety of cements and has expanded. It posted 725% higherQ3 EPS of Rs 24 and 56% higher 9MFY21 EPS of Rs 66, which could take FY21 EPS to Rs 90 on its small equity of Rs 7 cr. The share, which made a lifetime high of Rs 1280 on 28 April 2017, is poised to double in the medium-to-short term. Buy.
  • Ajanta Soya manufacturing Vanaspati and cooking oils with bakery products like biscuits, puffs, pastries etc. for blue-chip clients like Britannia, Goodrich, Parle, Priyagold, Pepsico, ITC, Sungold, Haldiram etc, has notched 250% higher Q3 EPS of Rs 4.8 and 93% higher 9MFY21 EPS of Rs 15.7, which could yield FY21 EPS of over Rs 21. With its expansion over in Dec 2020, it may end FY22 EPS with Rs 25. Buy for 50% gain.
  • Indo Thai Securities serving corporates, affluent individuals and retail investors for 20 years has notched Q3 EPS of Rs 5 and 9MFY21 EPs of Rs 10, which may lead to FY21 EPS of Rs 15. A conservative P/E of 5x can take its share price to Rs 75. Accumulate.
  • Eveready Industries notched 180% higher Q3 EPS of Rs 6.7 and 48% higher 9MFY21 EPS of Rs 18 in 9MFY21 and may post FY21 EPS of Rs 28. The Dabur promoters holding 19.3% may hike their stake further. Buy for a decent 30% gain.
  • The Great Eastern Shipping with 33 tankers and 13 dry bulk carriers will buy a second hand Supramax Bulk Carrier of about 56,103 DWT and also eyeing Shipping Corporation of India. The share may touch Rs 600 mark as it could post FY21 EPS of Rs 60 +. Buying by funds and the promoter is reported on the counter. Accumulate.
  • IIFL Securities, a key player in the retail and institutional segments with 2500 offices across 500 cities, continues to expand after acquiring 1.1 million demat accounts from Karvy. It posted 108% higher Q4 EPS of Rs 2.4 and FY21 EPS of Rs 7, which may rise to FY22 EPS of Rs 12. Buy for 50% gain.
  • Nava Bharat Ventures, manufacturer of ferro alloys, is now a multinational operating in India, Europe, Middle East, South East Asia and Africa and operates several power plants of 743 MW capacity. It posted Q3 EPS of Rs 7.3 and 9MFY21 EPS of Rs 18 and may notch FY21 EPS of Rs 24. After selling its sugar plants, the share may rise over 40% in the medium term. Buy.
  • Technocraft Industries, which makes drum closures, scaffolding, formwork, yarn & fabrics and into design & engineering with a 15MW power plant has notched Q3 EPS of Rs 17, 9MFY21 EPS of Rs 39.3, and is expected to end FY21 with an EPS of Rs 55. The share may touch Rs 550 on a P/E multiple of 10x. Buy.
  • Chamanlal Setia, a leading rice exporter, has notched 18% higher Q3 EPS of Rs 3.8 and 89% higher 9MFY21 EPS of Rs 11.7, which may lead to FY21 EPS of Rs 16. The share can advance by 25% going forward. Buy.
  • Anup Engineering from the Arvind Lalbhai group caters to the Aerospace, Oil & Gas industries. It came out with excellent quarterly numbers with an EPS of Rs.28. The stock trades cheap at Rs.670 and can give a quick 25% returns.

 

  • Borosil Renewables posted a quarterly EPS of Rs.5. It is running at full capacity and plans to treble its capacity. The stock trades cheap at Rs.270 at a forward P/E of 10x and can easily double. Buy at every decline for multi-bagger gains.
  • Goldiam International’s e-commerce sales were nearly 20% sales within a year of launch. This debt-free co. with net cash balance of Rs.300 crore is trading cheap and may become the next Vaibhav Global. Buy at every decline for multi-bagger gains.
  • The govt. has approved PLI for lithium ion batteries worth nearly Rs.18000 cr. Kabra Extrusion is a hidden gem in this space as it already has the knowhow through its foreign partner Kolsite and already manufactures batteries for EVs in the 2-3 wheeler space. A dark horse.
  • Technically, PSU banks show very good strength and are giving good breakouts on the charts with good volumes. Bank of India gave a breakout above Rs. 70. Buy for a target of Rs. 90.
  • Indiabulls Real Estate posted strong quarterly results and its corporate restructuring will be over in 2021. Technically, the stock has good support at Rs. 80 and has made a base here. Risk: reward is quite favourable. Buy for a target of Rs. 110.
  • An Ahmedabad based analyst recommends to buy BGR Energy Systems, Dhunseri Ventures, Ind-Swift Labs, Loyal Textile Mills, Lahoti Overseas, Rajoo Engineers, Shilp Gravures, Vipul Organics and Vasundhara Rasayan.

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