It is mandatory for new car owners to take a 3-year insurance cover and new 2-wheeler owners to take a 5-year insurance cover September onwards. GIC Housing Finance to benefit significantly.
Bajaj Auto plans to expand its 3-wheeler and quadricycle capacity following the government's decision to exempt electric vehicles (EVs) and automobiles run on alternative fuel from permit requirements. An excellent buy. I.T. services major Wipro has obtained a $1.5 billion 10-year deal from Alight Solutions. A big positive for the company.
Coal India reported a 3.2% rise in output at 38.8 MMT last month. Coal prices are also on the rise on the back of higher demand. To meet the government’s financial targets, the company is likely to pay a hefty dividend this year as well. Buy. Jindal Steel & Power plans to break up its business into different entities and trim its Rs.42000 debt by selling its Oman unit. This move may turn out to be a wealth creating opportunity for investors. Maruti Suzuki India reported marginally lower sales in August. A good opportunity for investors to accumulate the stock if its share price falls. Buy.
Food major Britannia Industries is showing signs of a breakout on the back of higher sales and improving EBITDA.
The stock may touch Rs.7250. Manpasand Beverages, which was beaten down due to adverse news, seems to be recovering. Investors with a risk appetite may enter. FMCG major Marico expects a double-digit volume growth in the next 3-5 years. Buy for the long-term. GAIL, the country’s largest gas transportation and marketing company, plans to set up battery charging stations for EVs. Buy for the long-term. Mahindra & Mahindra has introduced Marazzo (a multi-utility vehicle) priced at Rs.10,00,000 in an attempt to compete with Toyota’s Innova and Maruti’s Ertiga. A positive for the company. Aurobindo Pharma is close to acquiring Sandoz’s US portfolio dermatology business for $1 billion. A big positive for the company. ITC plans to compete with Amul, Coca Cola and Britannia Industries with the launch of its milk-based drinks. Accumulate.
Reports suggest that some foreign investors are keen on buying a stake in Reliance Home Finance. The stock has corrected sharply. Accumulate. Unconfirmed reports about falling prices of Aluminium have pulled down the share price of National Aluminium Company (NALCO). The stock will recover soon.
With the US dollar becoming stronger, Indian pharma companies stand to gain. Biocon has already started its upward march. Buy. Sagar Cements reported 24% higher consolidated cement sales at 2,47,051 tonnes in August 2018 over August 2017. A worthy buy.
Sun Pharmaceutical Industries derives a major portion of its revenue from exports. The strengthening of the US dollar will augur well for the company. Buy.
JK Paper has lifted the lockout at one of its plants. Now with its routine operations back on track coupled with bright industry prospects, better profitability can be expected. Buy for the long-term. Reports suggest that Page Industries may enter the women’s innerwear market. Buy.
Amara Raja Batteries, India’s second largest traditional battery maker, plans to build a lithium-ion assembly plant in Andhra Pradesh to increase its market share. Accumulate.
Meghmani Organics is expected to notch an
EPS of Rs.11 in FY19 and Rs.14 in FY20 post expansion. A reasonable P/E of 10.80x (industry P/E is 39.93x) will take its share price to Rs.137.5 in the medium-term and Rs.175 thereafter.
Based on its Q1FY19 EPS of Rs.11, International Paper APPM is expected to notch an EPS of Rs.50 in FY19. A reasonable P/E of 15x will take its share price to Rs.750. Based on its Q1FY19 EPS of Rs.104, Honeywell Automation is expected to notch an EPS of Rs.390+ in FY19. The stock is poised to cross Rs.25000.
Patel Engineering has posted a consolidated EPS of Rs.10 in FY18 on an equity capital of just Rs.15.7 crore. The stock is poised to touch Rs.75.
Some analysts are very bullish on Nestle India, which posted 50% higher PAT in Q2CY18. The stock is poised to touch Rs.12500.
Yes Bank is expected to post an EPS of Rs.23 in FY19. The stock trades at a forward P/E of 16.52x and P/BV of 2.9x. A reasonable P/E of 20x will take its share price to Rs.460. The stock trades cheap compared to RBL Bank, which trades at a forward P/E of 37.73x and P/BV of 3.86x.
An Ahmedabad based analyst recommends Amal, Crest Ventures, Lahoti Overseas, Ruchira Papers, Patel
Engineering, Pressman Advertising and Savera Industries. From his last week’s recommendations, Indraprastha Medical Corporation jumped from Rs.49.30 to Rs.52 while Vivimed Labs jumped from Rs.65.70 to Rs.69.90 in just 1 week! From his previous recommendations, Rishabh Digha Steel & Allied Products appreciated 165% from Rs.39.50 in December 2017 to Rs.104.90; Globus Spirits appreciated 56% from Rs.128.45 in August 2018 to Rs.200; and Haldyn Glass appreciated 17% from Rs.35.35 in August 2018 to Rs.41.3 last week!