✓ The government proposes to make REC a subsidiary of Power Finance Corporation. Analysts feel that this move may put financial pressure on REC temporarily but it won’t hamper its business in the long run. Accumulate both the stocks for good returns in the long term.
✓ Tata Steel contemplates to sell its stake in Tata Refractories and its electrical unit to pare debt and concentrate on its core business. A sensible move. Buy.
✓ Laurus Labs has launched a new HIV drug in collaboration with Aspen Pharmacare of South Africa. A positive for the company. Accumulate.
✓ Housing Development Finance Corporation raised Rs.9000 crore by sale of bonds - the largest so far in the housing sector. This shows the confidence of investors in this sector. Buy.
✓ With whistle blowers complaining to SEBI about irregularities at Sun Pharmaceutical Industries, it may be prudent to step aside and wait for the dust to settle. Sell.
✓ In an attempt to turnaround the working of Monnet Ispat and the recently acquired Aferpi mill, JSW Steel plans to merge its business with both these units.
✓ Yes Bank has received regulatory approvals for launching its own Mutual Fund. A big positive for the bank. An attractive buy.
✓ Hindustan Unilever (HUL) plans to merge with GSK’s healthcare business in India. The deal is likely to be EPS accretive for HUL. Buy.
✓ Bombay Dyeing & Manufacturing Co. may soon repay its Rs.2370 crore debt on the back of improved cash flows from its realty business. The next few quarters could be exciting for the company. Accumulate.
✓ State Bank of India has raised Rs.2000 crore through perpetual bonds to meet its long-term needs. A positive for the bank. Buy.
✓ The recent Rs.920 crore order bagged by ONGC has boosted the revenue visibility for Maharashtra Seamless. Buy for two years to reap good returns.
✓ Prakash Industries has reported a good working for the past few quarters and become a value buy. Its power and steel divisions are performing well.
✓ OPEC contemplates a production cut once again. It may be prudent to buy Selan Exploration Technology at the current level.
✓ Wipro shows signs of an imminent breakout with volumes and share price rising. Buy.
✓ Mahindra & Mahindra plans to expand its retail network to expand its customer base. Long-term investors must buy this stock.
✓ Kesoram Industries may soon spin-off its tyre business into a separate entity to realign and recalibrate its business. A wealth creation opportunity for investors.
✓ Lupin has launched the generic version of its Silodosin capsules, which are used to treat prostate gland complications. A positive for the company. Buy.
✓ NHPC has entered into an agreement with State Bank of India for a term loan of Rs.500 crore to fund its long-term capex needs. Buy for the long term.
✓ Aurobindo Pharma may obtain USFDA’s approval for its first bio similar drug in the next 12-18 months, which will boost its revenue and profitability significantly. Buy for the long term.
✓ Oberoi Realty may soon make it to the list of top developers in Mumbai. It may be prudent to add this debt-free company.
✓ Lincoln Pharmaceuticals plans to enhance its capacity. It is likely to notch an EPS of Rs.30 in FY19 based on its H1FY19 EPS of Rs.15. The stock has the potential to cross Rs.300.
✓ BCL Industries posted an EPS of Rs.13.7 in H1FY19 on account of good real estate business. Its edible oil and distillery businesses are also doing well. A reasonable P/E of 7x on FY19E EPS of Rs.20 will take its share price to Rs.140 in the medium-to-long term.
✓ Shreyans Industries is on course to notch an EPS of Rs.30 in FY19. The stock is available cheap and is likely to cross Rs.280.
✓ Sintex Industries is set to notch an EPS of Rs.3.5-4 in FY19. The stock trades cheap at a P/E of just 4x.
✓ Pokarna is likely to notch an EPS of Rs.22-24 in FY19. A reasonable P/E of 10x will take its share price to Rs.200240.
✓ Kriti Nutrients is expected to notch an EPS of Rs.4.5 in FY19 based on its H1FY19 working. A reasonable P/E of 10x will take its share price to Rs.45 in the medium term.
✓ Hinduja Global Solutions is likely to notch an EPS of Rs.95-100 in FY19 and Rs.105 in FY20. The stock may cross Rs.800.
✓ Eros International Media is set to notch an EPS of Rs.27 in FY19. It trades cheap at a P/E of just 3x v/s the industry P/E of 26x. Buy for decent returns in the short-to-medium term.
✓ An Ahmedabad-based analyst recommends IOL Chemicals & Pharmaceuticals, Jagsonpal Pharmaceuticals and Shiva Global Agro Industries.