Money Times - - Tower Talk -

Con­fec­tionery gi­ant, Bri­tan­nia In­dus­tries, is on an ex­pan­sion drive. Its strong brand im­age has made this stock an all-time favourite. A bonus issue is also on the cards. Buy for hefty gains.

Power Grid Cor­po­ra­tion of In­dia has se­cured a $500 mn loan from Asian De­vel­op­ment Bank for its green en­ergy cor­ri­dor and high volt­age di­rect cur­rent links in Tamil Nadu and Ker­ala.

Su­ven Life Sci­ences has se­cured a prod­uct pa­tent in Ja­pan for the treat­ment of neuro-de­gen­er­a­tive dis­eases. These patents are valid till 2034. A big pos­i­tive.

The In­fosys stock has re­bound on re­ports of Nan­dan Nilekani re­turn­ing to head the com­pany. Its plans to spend Rs.13000 crore in a buy back at Rs.1150/share, which will add mus­cle to the share.

Natco Pharma’s Q1 PAT soared 91% to Rs.94 crore on 39% higher sales. It re­ceived FDA ap­proval for its generic Lan­thanum Car­bon­ate Tablets used to treat end stage re­nal dis­eases. Buy. HDFC Stan­dard Life In­sur­ance Com­pany has filed a draft red her­ring prospec­tus with SEBI. HDFC will be a big ben­e­fi­ciary from the list­ing of its in­sur­ance arm. Buy.

The re­cent cor­rec­tion pro­vides a good op­por­tu­nity to buy Premco Global, a lead­ing man­u­fac­turer of wo­ven and knit elas­tic and non-elas­tic nar­row fab­rics, tapes and web­bings for the ap­parel, lin­gerie, med­i­cal, footwear, lug­gage, fur­nish­ing and au­to­mo­tive in­dus­tries. McNally Bharat En­gi­neer­ing Com­pany, a turnkey so­lu­tions provider, has re­ceived an EPC or­der worth Rs.514 crore for 8MMTPA Coal Han­dling Plant at Odisha. Ac­cu­mu­late. Ba­jaj Elec­tri­cals has ob­tained an or­der worth Rs.391.45 crore from the Trans­mis­sion Cor­po­ra­tion of Te­lan­gana, which will take 18 months to com­plete. In its at­tempt to main­tain a lean bal­ance sheet, Kolte-Patil De­vel­op­ers re­cently di­vested a land par­cel in Wakad, Pune for Rs.161 crore. Lower debt will en­able the man­age­ment to sus­tain a com­pet­i­tive edge and sus­tain growth. A good long-term buy. Shakti Pumps (In­dia) is con­sol­i­dat­ing and is ripe for another jump. Ac­cu­mu­late at around Rs.500 for a 20% jump within six months.

Tata Global Bev­er­ages’ pre­mium nat­u­ral min­eral wa­ter brand ‘Hi­malayan' is set to en­ter the US mar­ket soon. With more prod­ucts await­ing a sim­i­lar launch, this FMCG com­pany is a good long-term buy. NBCC In­dia's con­sol­i­dated PAT for Q1 climbed 30% YoY to Rs.61.27 crore on sales of Rs.1549 crore. The com­pany has a strong or­der book and the man­age­ment ex­pects its work­ing to be bet­ter in the quar­ters to come. Prakash In­dus­tries re­cently re­duced its debt by around Rs.110 crore by con­ver­sion of FCCBs. The beaten down share price of­fers a good op­por­tu­nity to en­ter.

The share price of both Power Fi­nance Cor­po­ra­tion and Ru­ral Elec­tri­fi­ca­tion Cor­po­ra­tion has fallen steeply from their re­spec­tive 52-week highs. Both these Navratna com­pa­nies con­tinue to fare well and are good buys. Reliance Cap­i­tal will al­lot free shares of Reliance

Home Fi­nance to its share­hold­ers in an equal pro­por­tion of their hold­ings by way of de­merger.

This value un­lock­ing propo­si­tion will ben­e­fit its share­hold­ers. Buy.

Indo Count In­dus­tries has clar­i­fied that its work­ing is in line with the guid­ance and that the re­cent fall in its share price was spec­u­la­tive in na­ture. Its clients and their orders are in­tact. Its share price may re­cover soon.

Ah­luwalia Con­tracts (In­dia) posted good re­sults for Q1 with 37% higher PAT at Rs.29.5 crore on 65% higher rev­enue at Rs.504 crore. Its fi­nance cost has also halved. A good time to buy. Alkem Lab­o­ra­to­ries has re­ceived USFDA nod for its rhini­tis drug - Aze­las­tine Hy­drochlo­ride Spray. Bharat Elec­tron­ics in­tends to al­lot a 1:10 bonus. Although the ra­tio is mea­gre, it does hint at the good times the com­pany is en­joy­ing. It may be a good time to add. Sources in the know expect Bhushan Steel to dou­ble from the cur­rent level. Lib­erty House of Lon­don has shown keen in­ter­est to the len­ders to buy the com­pany. Piramal, too, is in the race. With steel prices on the rise and Bhushan Steel's en­vi­ous clien­tele of top au­tomak­ers, the stock is likely to fetch a quick re­turn. HEG and Graphite In­dia make elec­trodes for Elec­tric Ve­hi­cles. Elec­trode prices have risen by 5x and the stock prices of both com­pa­nies have nearly dou­bled. They still have a long way to go. HCL In­fos­ys­tems’ re­cent tie-up with Ap­ple will take it to great heights. Ir­re­spec­tive of the low mar­gins in the distri­bu­tion busi­ness, this tie-up will lead to many more tie-ups with other com­pa­nies in the long run. The stock has strug­gled for years now and this might be the turn­ing point.

An Ahmedabad-based an­a­lyst rec­om­mends Agri-Tech (In­dia), Pat­spin In­dia, Rishi­roop and Sree Ray­alaseema Al­ka­lies & Al­lied Chem­i­cals. From his last week’s rec­om­men­da­tions, HT Me­dia jumped 10% from Rs.86.80 to Rs.95.60 while Smartlink Net­work Sys­tems jumped 9% from Rs.88.95 to Rs.97.40 within a week!

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