Biocon’s recent management meet with Stewart Investors is indicative of further expansion plans. Accumulate the stock at every decline. Coal India has approved an interim dividend of Rs.7.25/share for FY19. Buy for the long term. Infibeam Avenues has collaborated with IBM (India) to develop, implement and promote Blockchain applications for clients in India on LinuxOne. The stock is available at rock bottom levels. An excellent contrarian buy. The government’s decision to infuse another Rs.41000 crore into the banking system may boost the share price of Punjab National Bank. Buy. Indian Hume Pipe Co. has received a Letter of Acceptance (LoA) for a contract worth Rs.502.89 crore from Andhra Pradesh Drinking Water Supply Corporation. Its future prospects look good. Buy. Bank of India plans to sell 28.96% stake in Star Union Dal-ichi Life Insurance for ~Rs.1200 crore to meet its working capital requirements. A positive for the Bank. Buy.
To raise funds, the government has asked Indian Oil Corporation to pay a high dividend. Apart from good dividend yield, the workings of IOC are also improving. Buy. Oil & Natural Gas Corporation’s Rs.4000 crore buyback has started. A high interim dividend is also a possibility. Although the buyback is just 2% of its total equity, the resultant EPS will rise. A good opportunity to accumulate the stock.
In spite of aluminium stocks tanking on concerns of USA lifting sanctions on Russian company Rusal, National Aluminium Co. is worth accumulating at the current level. Although crude oil prices are falling, Selan Exploration Technology is still a good buy. This cash-rich company is planning a buyback.
The popular ‘Jawa’ motorbike launched by Mahindra & Mahindra (M&M) will give Eicher a tough fight in the market. Further, the two-wheeler market is set to grow 8-10% this year. Buy M&M.
An arm of Sun Pharmaceutical Industries has received relief from a US court in a patent infringement case. A positive for the company. Accumulate. Siemens will benefit from the government’s thrust on infrastructure spending. The company has beaten industry averages even in times of crisis. Buy. J.B. Chemicals & Pharmaceuticals, which currently trades at a discount to its peers, presents a good investment opportunity on the back of positive cash flows and debt-free status. The stock may rise by 50% within a year. Cipla, which was facing supply constraints at one of its US plants, seems to have overcome the hurdles. Its sales in USA are bound to improve. Accumulate.
The government is taking serious steps to bring the NBFCs out of their financial tightness. It may be prudent to buy L&T Finance Holdings. Vedanta plans to set up a 4.5 MMTPA steel plant in Jharkhand. This brownfield plant, at Bokaro will help the company enhance its capacity and profitability. Buy. USA based Blackstone group has signed a definitive agreement with Indiabulls Real Estate to buy 50% stake in its Udyog Vihar (Delhi) property for ~Rs.464 crore. Its prospects look good. Buy.
ITC has expanded its dairy portfolio with the launch of Sunfeast Wonderz Milk. This lucrative step will prove beneficial for the company. Buy.
Maruti Suzuki’s ‘Swift’ model seems to be on a comeback mode. This evergreen share deserves a place in every portfolio. Accumulate in small lots.
The falling crude oil prices will benefit tyre companies the most. Buy J.K. Tyre & Industries for big gains. Rico Auto Industries is expected to notch an EPS of Rs.6.5 in FY19 and Rs.9 in FY20 post expansion and improvement in margins. Buy for around 40% returns in the medium-to-long term. Hinduja Global Solutions is expected to notch an EPS of Rs.95-100 in FY19 and Rs.105 in FY20. The stock is likely
to touch Rs.800. Kriti Nutrients is expected to notch an EPS of Rs.4.5 in FY19 based on its H1FY19 results. A reasonable P/E of 10x will take its share price to Rs.45 in the medium term. Lincoln Pharmaceuticals, which posted 92% higher consolidated PAT for H1FY19, plans to enhance its capacity. Based on its FY19E EPS of Rs.30, the stock has the potential to cross Rs.300. Chennai Petroleum Corporation is expected to post excellent results for FY19 on account of falling crude oil prices. Buy for around 50% returns in the medium-to-long term. Datamatics Global Services is expected to notch an EPS of Rs.14 for FY19. With a share book value of Rs.98.85, its P/BV works out to just 1.07x. The stock is likely to touch Rs.147-150 on a reasonable P/BV of 1.6x and P/E of 10.5x in the medium term. Eimco Elecon (India), which reported 316% higher consolidated PAT for H1FY19, is likely to post an EPS of Rs.40 for FY19. The stock may cross Rs.600. Vindhya Telelinks is expected to notch a consolidated EPS of Rs.225+ for FY19. The stock is poised to touch Rs.3000.
An Ahmedabad-based analyst recommends Acknit Industries, Ajanta Pharma, Cupid, Gujarat State Fertilizers &
Chemicals and Super Crop Safe.