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.