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!