Money Times - - Tower Talk -

Al­chemist, which has in­ter­est in food pro­cess­ing, ho­tels & re­sorts, road tech­nolo­gies, health­care and IT, wit­nessed a turn­around in its Q2FY17 re­sults. The stock is poised for good times. Buy im­me­di­ately. ICICI Bank pro­poses a stake sale in ICICI Se­cu­ri­ties. This value un­lock­ing is likely to be in the in­ter­est of share­hold­ers. Buy. Swaraj Au­to­mo­tives, an emerg­ing global man­u­fac­turer of au­to­mo­tive com­po­nents, re­ported good re­sults for Q2FY17. The stock is avail­able be­low its book value of Rs.118. It is likely to notch an EPS of Rs.16+ for FY18. A good long-term buy.

With oil prices at two-year high, Se­lan Ex­plo­ration Tech­nol­ogy may be the big­gest ben­e­fi­ciary since it sells its prod­ucts to the Gov­ern­ment of In­dia at pre­vail­ing in­ter­na­tional prices. An ex­cel­lent buy in the cur­rent sce­nario. Axis Bank plans to raise Rs.4800-6400 crore through a pref­er­en­tial al­lot­ment of eq­uity/eq­uity linked se­cu­ri­ties to Bain Cap­i­tal. Gu­jarat Gas is likely to de­liver 40-60% earn­ings growth in the next 3 years. An ex­cel­lent buy. Staffing firm, Team­lease Ser­vices re­ported an al­most two-fold rise in Q2 PAT on 21% higher in­come. The man­age­ment ex­pects the next few quar­ters to be equally good. A good buy. VIP In­dus­tries stock is likely en­counter mo­men­tum on the back of 30% higher PAT on 8% higher sales. Jyothy Lab­o­ra­to­ries re­ported 47% higher PAT on flat sales. The stock could ap­pre­ci­ate on ex­pec­ta­tions of higher vol­umes.

Bank of Bar­oda is now the cheapest hous­ing loan provider. This will at­tract big busi­ness and the bank’s prospects should im­prove. Buy for the long-term. Tita­garh Wag­ons is ex­pected to launch au­to­mated track check­ing ve­hi­cles in lieu of lines­men in joint ven­ture with Mer­mec Spa of Italy. This should at­tract huge or­ders on the back of vig­or­ous ef­forts of the Rail­way Min­istry to avoid ac­ci­dents. A big buy.

Gold fi­nanc­ing com­pany, Muthoot Fi­nance re­ported a 53% jump in PAT for Q2FY18. Bharat Forge posted a 61% jump in Q2 PAT. All its di­vi­sions are per­form­ing well. Ac­cu­mu­late. Ru­ral Elec­tri­fi­ca­tion Cor­po­ra­tion, which plans to fi­nance rail­way elec­tri­fi­ca­tion and nu­clear power ca­pac­ity, is also con­tem­plat­ing ven­tur­ing into re­place­ment of old coal fired power plants. Such op­por­tu­ni­ties make this Navratna com­pany a good long-term buy. Aurobindo Pharma re­ported a 29% jump in US sales re­sult­ing in healthy Q2 earn­ings. Ac­cu­mu­late on ev­ery dip. Hin­dus­tan Petroleum Cor­po­ra­tion re­ported a 147% jump in

Q2 PAT on ac­count of higher re­fin­ing mar­gins and in­ven­tory gains. The stock is likely to rise on ex­pec­ta­tions of a good div­i­dend. Hawkins Cook­ers’ Q2 re­sults im­proved sig­nif­i­cantly on the back of new launches and ris­ing mar­ket share. The stock has the po­ten­tial to rise fur­ther. IRB In­fra­struc­ture De­vel­op­ers has man­aged to curb ex­penses, which re­sulted in 65% higher PAT on lower sales. Ef­fi­cient times can boost its share price. Voltas re­ported 32% higher PAT for Q2. New and elec­tric ef­fi­cient range of prod­ucts will only take its share price up­ward. Buy. As­sam Tea prices are firm­ing up as pro­duc­tion de­clined due to ex­ces­sive rains. Ex­port mar­kets are also firm­ing up. It would be pru­dent to buy Dhun­seri Tea In­dus­tries and Goodricke Group. Sin­clairs Ho­tels of the Press­man Ad­ver­tis­ing group is re­port­edly far­ing well and its Q2 re­sults this week could boost the stock price.

In­doco Reme­dies wit­nessed a turn­around in Q2FY18. A good buy at the cur­rent level for in­vestors will­ing to take a small risk.

Ashok Ley­land is striv­ing to boost the sale of its com­mer­cial ve­hi­cles. De­fence or­ders are also ris­ing. The re­cent fo­cus on elec­tric ve­hi­cles also of­fers scope to grow. Vind­hya Telelinks is likely to notch an EPS of Rs.85 in FY18 and Rs.95 in FY19 post ex­pan­sion. It holds a siz­able stake in Birla Corp and Univer­sal Ca­bles, the mar­ket value of which cur­rently is Rs.3125 crore (Rs.2648/share). The stock could touch Rs.1800 on ac­count of its im­prov­ing fun­da­men­tals and fur­ther ex­pan­sion. Go­ing by its ex­pan­sion ini­tia­tives, Steel Strips Wheels is ex­pected to notch an EPS of Rs.52-55 in FY18 and Rs.65-70 in FY19. The stock could cross Rs.1200. UFO Moviez In­dia is ex­pected to notch an EPS of Rs.30 in FY18. A rea­son­able P/E of 20x will take its share price to Rs.600 in the medium-term. The stock has been bought by mar­quee Funds and FIIs. Tata Mo­tors posted ex­cel­lent H1FY18 re­sults with an EPS of Rs.17. Most an­a­lysts ex­pect an EPS of Rs.33-35 for FY18, which will take its share price to Rs.580 in the medium-term on a rea­son­able P/E of 17.5x. Pearl Global In­dus­tries trades at 7x to FY18E earn­ings v/s the in­dus­try av­er­age of 40x. New ca­pac­ity is be­ing added this year. The stock could give 50% re­turns in the short-term. Walc­hand Peo­ple­first has posted good re­sults for Q2. The stock trades cheap at Rs.160 and could eas­ily dou­ble from this level. Univer­sal Ca­bles is slowly and steadily mov­ing into new or­bits. This hid­den gem, which holds stake in Vind­hya Telelink and Birla Corp via its step-down sub­sidiary, trades cheap and could rally just like BBTC. So­ril In­fra Re­sources is a hid­den gem from the In­di­a­b­ulls group. It has bagged mas­sive or­ders from Re­liance In­dus­tries. Buy this undis­cov­ered stock for good gains in the medium-to-long-term. TVS Elec­tron­ics, dis­trib­u­tor of Xiaomi mo­bile phones in In­dia, has seen its rev­enue and profit mul­ti­ply in the last few quar­ters. The com­pany is on a sound foot­ing now and many HNIs have taken po­si­tion in this counter for the long-term. United Brew­eries posted a three-fold jump in Q2 PAT mainly on ac­count of higher sales (up 23%) and vol­ume growth. It has started mov­ing up­wards af­ter many years of con­sol­i­da­tion. Buy for quick gains. An Ahmed­abad-based an­a­lyst rec­om­mends IOL Chem­i­cals & Phar­ma­ceu­ti­cals (IOLCP), NRB Bear­ings and Pudum­jee In­dus­tries. IOLCP is likely to re­port good Q2 num­bers on 13 Novem­ber 2017 and hence, in­vestors with a risk ap­petite can buy the stock with a strict stop loss of Rs.52 for ex­cel­lent re­turns in the medium-to-long-term. From his past rec­om­men­da­tions, Fron­tier Springs ap­pre­ci­ated 176% from Rs.72.40 to Rs.200.05 in 3.5 months; Kuan­tum Pa­per ap­pre­ci­ated 85% from Rs.492.15 to Rs.912 within 4 months; Agri-Tech (In­dia) ap­pre­ci­ated 67% from Rs.82.80 to Rs.138 in 2.5 months; Amines & Plas­ti­ciz­ers ap­pre­ci­ated 60% from Rs.49.40 to Rs.79 in 3.5 months; Kriti Nu­tri­ents ap­pre­ci­ated 57% from Rs.21.50 to Rs.33.80 in 1 month; Nu­cleus Soft­ware Ex­ports ap­pre­ci­ated 29% from Rs.323.45 to Rs.416.90 within 1 month; W.H. Brady & Com­pany ap­pre­ci­ated 26% from Rs.228.50 to Rs.287.95 within 1 month.

The grey mar­ket pre­mium on HDFC Stan­dard Life In­sur­ance Co. IPO has crashed to Rs.3-4 from Rs.14-15 last week.

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