PUNTER PICKS

Money Times - - Tower Talk -

Note: Po­si­tional trade and exit at stop loss or tar­get which­ever is ear­lier. Not an in­tra-day trade. A de­liv­ery based trade for a pos­si­ble time frame of 1-7 trad­ing days. Exit at first tar­get or above.

Note: SA-Strong Above, DP-De­mand Point, SP- Sup­ply Point, SA- Strong Above, RS- Strength Lupin is set to launch its generic Potas­sium Chlo­ride Oral So­lu­tion. A pos­i­tive for the com­pany. Buy. With Chanda Kochhar step­ping down, the growth path for ICICI Bank is wide open. An at­trac­tive buy. Mahin­dra & Mahin­dra has en­tered the re­tail leas­ing mar­ket and ex­pects this busi­ness to con­trib­ute 5-7% to

ac­crued sales. Buy.

State Bank of In­dia has raised the tar­get for loan port­fo­lio pur­chase from NBFCs. The in­vest­ment will in­fuse the much needed liq­uid­ity into the mar­ket. Buy. In­di­a­b­ulls Hous­ing Fi­nance has hiked its home loan rates and has posted ex­cel­lent re­sults for Q2 with an in­terim div­i­dend of Rs.10. Also, the man­age­ment has guided a 20% growth this year. The stock is a po­ten­tial bonus can­di­date as well. Buy. Ker­ala Ayurveda has col­lab­o­rated with Sanghvi Brands Ltd to de­velop Ayurveda well­ness re­sorts. The stock is avail­able at 50% dis­count to its 52-week high. Buy. Gar­den Reach Ship­builders & En­gi­neers, which had a sub­dued list­ing on the bourses, is re­port­edly do­ing well. The cur­rent sce­nario of­fers a good op­por­tu­nity to buy if you missed it. L&T Fi­nance Hold­ings has clar­i­fied that it does not have any ex­po­sure to IL&FS bills of ex­change and there­fore is in a safe zone. Ac­cu­mu­late. Maruti Suzuki In­dia, which re­cently flagged off about 50 elec­tric ve­hi­cles for field test, mer­its a buy. PI In­dus­tries has a strong or­der book and sus­tained capex plans for the next few years. It may grow at ~20% CAGR over the next two years. Buy.

FMGC ma­jor, ITC, is trad­ing around 16% be­low its in­trin­sic worth. Buy.

The Can­fin Homes counter has wit­nessed heavy vol­umes and the stock is likely to make a new high soon. Buy. Re­laxo Footwears ex­pects a 25% growth in vol­umes with a turnover of ~Rs.2500 crore sales this year. It also in­tends to add about 50 stand­alone out­lets. Buy for the long-term. HCL Tech­nolo­gies plans to in­vest ~Rs.750 crore to set up two fa­cil­i­ties in Andhra Pradesh, which will cre­ate about 7,500 jobs over the next ten years. Buy.

The truce be­tween the pro­mot­ers of Yes Bank will def­i­nitely ben­e­fit the bank in many ways. Buy im­me­di­ately. Zee En­ter­tain­ment En­ter­prises, which re­ported 24% higher rev­enues dur­ing Q2FY19, is ex­pected to fare well this year. Buy.

Axis Bank, which has an ef­fi­cient work­force, shows signs of a break­out. An ex­cel­lent buy. HEG and Graphite In­dia have started ris­ing again after Bank of Amer­ica Mer­rill Lynch ini­ti­ated a heavy cov­er­age. The prospects of both com­pa­nies are slated to im­prove sig­nif­i­cantly. A big buy. Dilip Build­con has re­ceived a huge or­der worth ~Rs.1000 crore from Coal In­dia. The man­age­ment is eye­ing around 30% CAGR over the next two years. Buy. Timken In­dia has turned at­trac­tive on amal­ga­ma­tion plans of ABC Bear­ings. The stock has the po­ten­tial to rise ~30% within a year. Buy.

Tata Con­sul­tancy Ser­vices re­ported 23% higher PAT at Rs.7901 crore for Q2FY19. An ever­green stock. Buy. BSE is avail­able at at­trac­tive P/E val­u­a­tions of 12x FY19E earn­ings with 6% div­i­dend yield. The stock has the po­ten­tial to touch Rs.1000 again within a year. Press­man Ad­ver­tis­ing with a 70% div­i­dend track record and a book value of Rs.15.13 for its Rs.2 paid-up share is an at­trac­tive buy at a P/E of 9.38 against the in­dus­try av­er­age P/E of 27.43. Shreyans In­dus­tries, which posted good re­sults for Q1FY19, is on course to notch an EPS of Rs.30 for FY19. The stock trades cheap and has the po­ten­tial to cross Rs.280. Hin­duja Global So­lu­tions is ex­pected to notch an EPS of Rs.105 for FY19 and Rs.115 for FY20. The stock may touch Rs.1200. Bosch is ex­pected to notch an EPS of Rs.600 for FY19 based on its Q1FY19 EPS of Rs.140+. The stock is likely to cross Rs.24000 go­ing for­ward. Pokarna is all set to notch an EPS of Rs.22 in FY19. A rea­son­able P/E of 10x will take its share price to Rs.220. After re­port­ing ex­cel­lent num­bers for Q1FY19, Vind­hya Telelinks is ex­pected to notch a con­sol­i­dated EPS of Rs.160+ for FY19. A rea­son­able P/E of 12.5x will take its share price to Rs.2000. Go­dawari Power & Is­pat is ex­pected to notch an EPS of Rs.85 for FY19. Buy for 50% re­turns in the medium-term. KSE, which re­ported an EPS of Rs.45.75 for Q1FY19, may notch an EPS of Rs.260 in FY19. Gen­er­ally, its sec­ond half is al­ways bet­ter. A rea­son­able P/E of 15x (in­dus­try P/E is 35x) will take its share price to Rs.3900 in the medium-term. More­over, the stock is a strong bonus can­di­date. Rico Auto In­dus­tries aims to achieve a turnover of Rs.2000 crore by 2020. It is on track to notch an EPS of Rs.6.5 for FY19 and Rs.9 for FY20. The stock is poised to cross Rs.100. Veto Switchgears & Ca­bles is likely to notch a con­sol­i­dated EPS of Rs.18 in FY19. The stock is avail­able at a steep dis­count of 65% from its all-time high and has the po­ten­tial to touch Rs.150. Andhra Petro­chem­i­cals, which re­ported 3000% higher PAT of Rs.31.47 crore for Q1FY19, is ex­pected to post ex­cel­lent re­sults in Q2 as well. It has en­hanced its pro­duc­tion ca­pac­ity from 30,000 TPA to 73,000 TPA. Buy. An Ahmed­abad-based an­a­lyst rec­om­mends Ack­nit In­dus­tries, Hind Alu­minium In­dus­tries and IOL Chem­i­cals & Phar­ma­ceu­ti­cals. From his last week’s rec­om­men­da­tions, Goldiam In­ter­na­tional jumped 11% from Rs.70.10 to Rs.78 in just 1 week!

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