TOWER TALK

Money Times - - Tower Talk -

State Bank of In­dia plans to raise Rs.26000 crore via sale of non-core as­sets and stake to in­fuse liq­uid­ity. A big pos­i­tive for the bank. Buy. HSIL aims to achieve a turnover of ~Rs.500 crore in FY19 on the back of its on-go­ing ex­pan­sion. Buy for quick gains. JSW Steel has lined up Rs.1000 crore to set up a new steel pipes and plates fa­cil­ity in Texas. Buy for the long-term. Vi­nati Or­ganic re­ported ex­cel­lent re­sults for Q2 with twice the prof­itabil­ity re­ported in the pre­vi­ous cor­re­spond­ing quar­ter. An ex­cel­lent buy. Blue Dart Ex­press is ex­pected to con­tinue its up­ward march on the back of its ex­cel­lent Q2 re­sults. Buy. Minda Cor­po­ra­tion could not re­port higher prof­itabil­ity in spite of higher rev­enues. Its mar­gins seem to be un­der pres­sure. Stay away from this counter. Yes Bank shows signs of a come­back. Its Q2 work­ing was also good. Buy.

Es­corts re­ported higher rev­enue and prof­itabil­ity in Q2FY19. The stock looks at­trac­tive at the cur­rent beaten down lev­els.

Larsen & Toubro con­tin­ues to out­per­form backed by a grow­ing or­der book. Buy for the long-term. Jaguar Land Rover con­tin­ues to be a drag on Tata Mo­tor. It may be pru­dent to stay away from this counter for the next few quar­ters.

Hous­ing Devel­op­ment Fi­nance Cor­po­ra­tion re­ported 25% higher PAT for Q2. Its loan book has also grown by ~17%. Buy.

Megh­mani Or­gan­ics has fallen un­nec­es­sar­ily due to spec­u­la­tion about a change in its share­hold­ing. Ac­cu­mu­late. De­wan Hous­ing Fi­nance Cor­po­ra­tion has bought back Rs.2000 crore worth com­mer­cial pa­pers be­fore ma­tu­rity. This will in­stil con­fi­dence among in­vestors who were wary of the com­pany’s fi­nan­cials. Buy. GNFC re­ported ex­cel­lent re­sults for Q2. The stock is likely to re­bound soon. Buy. Ris­ing vol­umes and higher de­liv­er­ies at the Axis Bank counter in­di­cates that the stock is set to rise. Buy. Ajanta Pharma shows signs of a re­bound. With some new prod­ucts to be launched, the com­pany seems to have a bright fu­ture. Buy.

A big re­bound in the share price of PC Jew­eller along with high vol­umes sug­gests that some good news may be in the off­ing. The man­age­ment in­tends to re­pay banks a big amount as pre­ma­ture pay­ment. Buy. IG Petro­chem­i­cals is ex­pected to re­port ex­cel­lent re­sults for Q2. The stock is avail­able at less than half its peak level. Buy im­me­di­ately. In­ter­na­tional crude oil prices are fall­ing grad­u­ally. It may be pru­dent to buy In­dian Oil Cor­po­ra­tion. Na­tional Alu­minium Com­pany has crossed its re­sis­tance lev­els. The pro­posed buy back will boost its share price

fur­ther. Buy.

Jay Bharat Maruti seems to re­bound­ing with strength on the back of on-go­ing ex­pan­sions. Buy. Eimco Ele­con re­ported 315% higher PAT for H1FY19 and is likely to notch an EPS of Rs.40 in FY19 since its H2 is al­ways bet­ter. The stock may cross Rs.600. Tor­rent Power is ex­pected to notch an EPS of Rs.25 in FY19 based on its ro­bust H1FY19 re­sults. The stock may cross Rs.375 at a rea­son­able P/E of 15x. Just Dial re­ported 29% higher PAT for Q2. The stock is poised to touch Rs.600. Jin­dal Poly Films is the cheap­est pack­ag­ing share avail­able at a for­ward P/E of just 6x on FY19E EPS of Rs.45. A rea­son­able P/E of 10x will take its share price to Rs.450. Bosch is ex­pected to notch an EPS of Rs.580-600 for FY19. It will an­nounce its buy­back price this week along with its Q2 re­sults. The stock has the po­ten­tial to cross Rs.24000.

Af­ter sell­ing its ed­u­ca­tion busi­ness for Rs.4378 crore (Rs.263/share), Cox & Kings may look at sell­ing its hos­pi­tal­ity ver­ti­cal when the op­por­tu­nity arises. Buy for the short-to-medium term.

An Ahmed­abad-based an­a­lyst rec­om­mends Aries Agro, Hind Rec­ti­fiers, ITD Ce­men­ta­tion, Kal­lam Tex­tiles, Menon Bear­ings, Nitin Spin­ners and Ruchira Pa­per. From his pre­vi­ous rec­om­men­da­tions, Bal­ram­pur Chini Mills jumped 70% from Rs.66.4 to Rs.113.20 in 4.5 months; Amar­jothi Spin­ning Mills jumped 25% from Rs.93 to Rs.115.90 in 1 month; and Shilp Gravures jumped 10% from Rs.103.1 to Rs.113 in just 1 week! An as­tro-techno an­a­lyst fore­casts 20 Mi­crons, Ruchira Pa­pers and IOL Chem­i­cals & Phar­ma­ceu­ti­cals to be the po­ten­tial multi­bag­gers of Sam­vat 2075.

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