TOWER TALK

Money Times - - News -

The gov­ern­ment has hiked the im­port duty on tyres. A pos­i­tive for JK Tyre & In­dus­tries and Ceat. Buy.

The re­cent cor­rec­tion in the mar­ket did not af­fect Ru­ral Elec­tri­fi­ca­tion Cor­po­ra­tion and Power Fi­nance

Cor­po­ra­tion as both the stocks are fun­da­men­tally strong. The gov­ern­ment is also con­tem­plat­ing a merger be­tween them. Buy both the stocks. Con­tra­dic­tory ru­mor about Mr. Rana Kapoor’s likely ex­ten­sion is cre­at­ing volatil­ity in the Yes Bank counter. In­vestors with a risk ap­petite may en­ter.

The re­cent tur­moil in the mar­kets did not af­fect Bio­con at all. Ac­cu­mu­late this fun­da­men­tally strong stock.

De­wan Hous­ing Fi­nance Cor­po­ra­tion and In­di­a­B­ulls Hous­ing Fi­nance con­tinue to bleed. This may be a good time to ac­cu­mu­late these gems from the hous­ing fi­nance sec­tor or av­er­age out. The shrimp sec­tor could with­stand the sell­ing pres­sure seen on the bourses. Buy Water­base.

PTC In­dia is avail­able at a throw­away price be­low its share book value. It re­ported an EPS of Rs.10.78 and a div­i­dend of Rs.4 for FY18. Buy. Crest Ven­tures has re­ported ex­cel­lent re­sults for the last few years. The man­age­ment is san­guine about its fu­ture. A good share to buy. Bata In­dia and Re­laxo Footwears will ben­e­fit from the duty hike on im­ported shoes. Buy both the stocks. L&T Fi­nance Hold­ings has also fallen in line with the mar­ket crash. An ex­cel­lent buy at this level. Graphite In­dia is down more than Rs.200 in one week. Its ex­cel­lent work­ing mer­its a buy. Mahin­dra & Mahin­dra is work­ing on a new trac­tor that costs less than Rs.2 lakh for small and mar­ginal farm­ers. Buy. Hindustan Unilever and Nes­tle In­dia plan to in­crease their prod­uct prices. Buy both the stocks for the long-term. Italy’s At­lantia is in talks to buy the stressed road as­sets of the In­fra­struc­ture Leas­ing &

Fi­nan­cial Ser­vices (IL&FS) group. LIC is also look­ing at var­i­ous op­tions to bail out the com­pany. In­vestors with a risk ap­petite may buy the stock with strict stop losses.

Jet Air­ways (In­dia) once again de­faulted in salary pay­ments to its em­ploy­ees. Stay away from this counter.

Con­trary to spec­u­la­tions, the gov­ern­ment has not hiked duty on gold. Ti­tan Com­pany and Goldiam In­ter­na­tional should bounce back.

Reliance In­fra­struc­ture has be­come fi­nan­cially strong af­ter sell­ing its power dis­tri­bu­tion busi­ness to the Adani group. Buy.

The Man­pasand Bev­er­ages counter has re­cently wit­nessed higher vol­umes and de­liv­er­ies. Some good news may be in the off­ing. Buy.

Goa Car­bon is avail­able at less than half its yearly high. Ac­cu­mu­late this gold mine. With pos­i­tive news cir­cu­lat­ing around the tele­com sec­tor, Hi­machal Fu­tur­is­tic Com­mu­ni­ca­tions looks at­trac­tive af­ter the steep cor­rec­tion in its share price.

The tur­moil in the mar­kets could not dent the share price of Deepak Ni­trite. Some good news may be in the off­ing. Ac­cu­mu­late in small quan­ti­ties.

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 12.5x (in­dus­try P/E is 37.92x) 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.

SML Isuzu, which posted an EPS of Rs.14 for Q1, is likely to notch an EPS of Rs.40 in FY19. The stock may cross Rs.1200.

Data­mat­ics Global Ser­vices is ex­pected to notch an EPS of Rs.14.5 in FY19. With a book value of Rs.98.85, its P/BV ra­tio stands at just 1.05. A rea­son­able P/E of 10.5x will take its share price to Rs.150+ in the medium-term. Rico Auto In­dus­tries is ex­pected to notch an EPS of Rs.6 in FY19 and Rs.7.5 in FY20 post ex­pan­sion. The stock is ex­pected to cross Rs.100 in the medium-term. Jin­dal Poly Films is the cheap­est pack­ag­ing stock avail­able at a for­ward P/E of 6x on FY19E EPS of Rs.45. A rea­son­able P/E of 10x will take its share price to Rs.450.

An Ahmed­abad-based an­a­lyst rec­om­mends 20 Mi­crons, Amar­jothi Spin­ning Mills, Aro Gran­ite In­dus­tries, La­hoti Over­seas, Shilp Gravures, Lam­bod­hara Tex­tiles, Aries Agro and Axis Bank.

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