Money Times Talk

*Money Times Talk*

*August 6, 2023*

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The Blackstone Group has acquired over 71 lakh shares of *Indiabulls Housing Finance*. MFs and FIIs, too, are continuously acquiring. Add for hefty gains.

Analysts expect a rise in the stock price of *Reliance Industries* due to upcoming AGM on 28 August 2023, at which some important announcements can be made. Hold/Add.

*IDFC* Q1FY24 results were subdued in the absence of its AMC business which was sold in March 2023 to facilitate its merger with IDFC First Bank. Adding its network of 450 branches to the Bank will give a big boost to the merged Bank. Strong re-rating is expected in both IDFC & IDFC First Bank shares. Add.

*Reliance Capital* posted turnaround Q1 results but has still a long way to go. Risk bearing investors may enter with strict stop loss limits.

*Zomato* reported Q1 profits of around Rs.2 cr. as against a loss of Rs.186+ cr. in Q1FY23. This turnaround situation may boost the stock price. Accumulate.

*Bharti Airtel* recorded Q1FY24 PAT of Rs.1612 cr. on the back of rising average revenue per unit (ARPU). Total capex spend for Q1FY24 was Rs10486 cr. Add.

*Adani Power’s* Q1 PAT rose 83% YoY to Rs.8759 cr. The plant load factor (PLF) was also positive. All parameters point to rising profits. Add.

*Dabur India’s* Q1 NP rose 5% to Rs.464 cr. which was not in line with market expectations. However, selling is not advised. Retain.

*MRF* posted higher Q1 NP of Rs.589 cr. Its share looks good at any price. Add.

*Tube Investments*’ Q1 PAT grew 10% YoY to Rs.214 cr. in spite of rising input costs. Its share price looks underpriced. Add.

*Ambuja Cements* profits grew 20% on improved operational efficiencies and higher other income. It has also acquired 56.74% in Sanghi Cements for Rs.5000 cr. Its share is posed to fare better in FY24. Add.

*Mankind Pharma’s* Q1 profit rose 66% to Rs.464 cr. on the back of higher volumes and strong traction in chronic therapy segment. Add.

*Welspun Enterprises* posted all-around growth in profit, sales and profit margins. It has an order book of Rs.9600 cr. Add.

*Coal India* plans to change its name to CIL Energy India to reflect its future business plans beyond coal mining. Add.

*HPCL* notched Q1FY24 EPS of Rs.43 as against a negative EPS of Rs. -63.26 in Q1FY23. A big positive. Add.

*Power Grid* has good long-term prospects and plans to invest Rs.1.8 lakh crore over the next few years. Although its Q1 profit fell by 5%, it still remains a good buy. Add.

The bearings industry is expected to grow by about 11% in FY24. *Menon Bearings*, which has large domestic and export orders can be a good investment. Add.

*Eicher Motors* is riding ahead on its highest ever Q1 profits of Rs.918 cr. It is many steps ahead of its competitors as stated by its MD, Mr. Sidharth Lal. Add.

*LIC Housing Finance’s* Q1 NP rose 43% to Rs.1323.6 cr. on the back of strong performance in the NIMs. Further, the individual home loan segment grew 10%. Add for the long term.

*Karnataka Bank’s* Q1 PAT rose 225% to Rs.70.7 cr. Casa Ratio and Capital adequacy norms stood at 32.19% and 17% respectively. It expects this performance to continue. Add for hefty gains.

*Kansai Nerolac Paints* notched Q1FY24 EPS of Rs.9.13 as against Q1FY23 EPS of Rs.1.93 and surpassing FY23 EPS of Rs.5.86. A big positive. Add for decent gains.

Singapore based global investment firm, Temasek, is set to invest Rs.1200 cr. in the passenger EV segment of *M&M Ltd*. A big positive. Add.

*Kalyan Jewellers* is on a big expansion mode and plans to open 11 showrooms across India. Add.

*SBI’s* Q1 NP rose 178% to Rs.16884 cr. Besides, its slippages were also within tolerance levels. Add.

*Deep Industries* notched 58% higher Q1 EPS of Rs.4.9, which may lead to FY24 EPS of Rs.22 as against FY23 EPS of Rs 13.8. Add for 30% gains.

*MSTC* notched 63% higher Q4 EPS of Rs.10.9 and 22% higher FY23 EPS of Rs.34.4. Heavy investment buying could take the share price to new highs. Add.

*Geekay Wires* notched 219% higher Q1 EPS of Rs.8, which may lead to FY24 EPS of Rs.37 as against FY23 EPS of Rs 26. Its share trades at a P/E of 7.6x as against its peer DP Wires which trades at a P/E of 13.6x. Accumulate.

*20 Microns* notched 11% higher Q1 EPS of Rs.4.2, which may lead to FY24 EPS of Rs.16+ as against FY23 EPS of Rs.11.9. Add for 30% gains.

*Venus Remedies* has received marketing authorisation for key cancer drugs from Philippines, Paraguay, Georgia and Moldova. Further, its oncology product registrations have gone up to 506 with marketing approvals from four more countries. Add.

*Karnataka Bank* notched 225% higher Q1 EPS of Rs.11.8, which may lead to FY24 EPS of Rs.46+ as against FY23 EPS of Rs.37.7. Accumulate.

*NR Agarwal* notched 24% higher Q1 EPS of Rs.23.8, which may lead to FY24 EPS of Rs.68 as against FY23 EPS of Rs.58.4. Accumulate.

*Oriental Carbon* notched 9% higher Q1 EPS of Rs.9.9, which may lead to FY24 EPS of Rs.55+ as against FY23 EPS of Rs.48.7. Accumulate for the long term.

*Petronet LNG* posted 15% higher Q1 EPS of Rs.5.5, which may lead to FY24 EPS of Rs.25+ as against Rs.22.2 in FY23. Add for the long term.

*Cigniti* notched 44% higher Q1 EPS of Rs.16.3, which may lead to FY24 EPS of Rs.70 as against FY23 EPS of Rs.61.3. Add.

Adani has again started its acquisition spree by recently acquiring Sanghi Cement. *Saurashtra Cement* trades the cheapest in the lot on a per tonne basis. Keep it on your radar.

Since govt. is insisting on Chinese cos. to localize operations, all electronics manufacturers to set base here or outsource from Indian cos. *Optiemus Infracon* recommended last week rose 20% while *Palred Technologies* has tied-up with a Chinese mobile manufacturer. Keep them on your radar.

*SKM Egg* shows phenomenal growth in both topline and bottom-line. Its share trades at a P/E of less than 10x. Add for 50% gain.

*Som Distilleries* has tied-up with Heinekein and has licenses from several states for whisky and beer sales. This gives it headroom to grow consistently for the next 5-10 years. Add on dips.

*Deccan Gold* recommended last week rose from Rs.75 to Rs.110. Prudent to book some profits and re-enter at lower levels.

*M&M* story is revving up and all its investee companies are doing well. It is available at very attractive valuation. Add.

In spite of good results and unique portfolio, *Bosch* is ignored. It is bound to be re-rated. Add.

*Navin Fluorine* is getting stronger. If one ignores the short term, this is a blue chip at an undemanding valuation specially considering the huge capex. Add for the long term.

*TNPL* has various business such as paper, paper boards, cement and power generation. Its stock trades at a P/E of 4x on FY24E. Add for 30% gains.

*Summit Securities* is available at 89% discount to its holding of Rs.8800 cr. in KEC, ZENSAR and CEAT. Add for decent gains.

*RattanIndia Enterprises* comprises of tech focused new age businesses including e-commerce, electric vehicles, fintech and drones. In EVs, its Revolt Motors leads in E-motorcycles while subsidiaries NeoSky and Throttle Aerospace Systems are leaders in the drone industry. Last week, its stock recorded highest weekly volume and formed a flag pattern break out. Add for hefty gains.

*Rudra Global Infra* doubled its TMT bars capacity to 2.4 lakh TPA. For FY23, its PAT rose 64.65% to Rs.13.88 cr. It has given second best weekly closing in last 5 years & ready for an upmove. .

*HCC*, leader in building infra projects, recorded Q1FY24 PAT of Rs.52.7 cr. as against loss of Rs.280.7 crore. Its order book stood at Rs.13568 cr. Further, a right issue may be on the card. Add for 50% gains.

*Satin Creditcare Network* recorded Q1FY24 PAT of Rs.88 cr. as against loss of Rs.210 cr. Its AUM grew 26% to Rs.9535 cr. Management expects 25%+ growth in FY24. Looking at the P/BV, it is the cheapest listed MFI company. Add.

*Univastu* India’s last 5 years PAT grew at a CAGR of 19%. Infra stocks are in dream bull run. Add.

*Midhani* hit new 52-week high Rs.390 on 4th August. It has played a vital role in the successful launch of the Chandrayaan-3. Its Q1FY24 results are on 8th August. Keep it on your radar.

*Texmaco Rail* posted Q1FY24 NP of Rs.8.53 cr. as against huge loss of Rs.24.35 cr. in Q1FY23. It awaits an order of 10000 wagons. Further, it expects exports to rise going forward and plans to raise fund via. QIP. Keep it on your radar.

Companies in earth moving, earth equipment and mining related activity are in big demand. *Gujarat Apollo*, a debt-free company, posted 52% rise in FY23 profit. It has a BV of Rs.406. Due to the new mining policy, FY24 looks more promising. It is available at 20% cum dividend. Add for hefty gains.

*Aries Agro* has bought 1-acre land in U.P. to shift its factory from a leased premise and also expand. It posted FY23 profit of Rs.20.23 cr. with an EPS of Rs.15.56. Its BV is Rs.187 and RoCE is 14.4%, respectively. FIIs are raising their stake too. Due to a good monsoon FY24 looks more promising and its Q1FY24 results are on 10th August. Add.

Authum Investment bought 726113 shares of *Veranda Learning* taking its total stake to 6%+. VL’s enrolments zoomed to 4 lakh from only 60k last year. It made 3 new tie-ups to enhance and diversify its revenue. Its Q1FY24 results are on 9th August. Keep it on your radar.

*Time Technoplast* posted FY23 net profit of Rs.223.77 cr. with an EPS of Rs.9.69. It has an equity base of Rs22.61 cr. and reserve of Rs.2046.60 cr. Ntasian discovery India fund holds 6.72% of the equity capital. Its Q1FY24 results are on 10th August. Add for hefty gain.

*Godrej Agrovet’s* Q1FY24 NP rose 365% to Rs.107.08 cr. from Rs.23.47cr. in Q4FY23. FIIs and DIIs hold 9.7% and 6.6% of its equity capital. In July 23, it was allotted 47000-acres in Telangana for expansion. Its conference call with analysts will be held on 8th August. Add for hefty gains.

*Pacific Industries* notched FY23 EPS of Rs.17. It has reduced its debt. Its 52-weeks high is Rs.303 and is now available at Rs.136, against a BV of Rs.610. Its Q1FY24 results are on 10th August. Add for quick gains.

Big developments in railways is *IRFC*, which will sign a MoU with RITES to strengthen their cooperation in financing and development of Railway projects. IRFC share is available at a P/E of 9x. Its Q1FY24 results are on 11th August. Add for decent gains.

*RTS Power* has huge clientele which includes defence, railways, state electricity boards, telecom players and private electricity producers. It is a debt free company available at P/BV of 0.84x. The promoters hold 74% of the equity capital. Add for multi-bagger returns.

*COSCO INDIA* is available at a market cap of Rs.100 cr. only. It exports products to over 35 countries and is the exclusive distributor of Adidas, Reebok and Stiga in India. Technically, its share is poised for a big break out. Add for decent gain.

*ABM Knowledgeware,* pioneer in smart city solutions, boasts of high reserves, big order book, promoter holding of 67% and available at throwaway valuation. Its share trades at a P/E of 15x. Its Q1FY24 results are on 11th August. Keep it on your radar.

*ITD Cementation* hit a new 52-week high of Rs.189 on 2nd August. Further, it has a huge order book of Rs.20044 cr. on hand. Its Q1FY24 results are on 7th August. Keep it on your radar.

*Debock Industries* has commenced Granite and Marble mining by acquiring huge mines near Udaipur. A big positive. Add.

*Lancer Container Lines’* board will meet on 10th August to consider bonus issue. Its WOS Lancia Shipping LLC (Dubai), has entered into a JV agreement for vessel operations. A big positive. Add for hefty gains.

*Kamdhenu Ventures* has posted excellent results for Q1FY24 with high growth in profits and revenues. Saint Capital Fund bought 350000 shares in the company. Add.

*Baid Finserv* plans expansion in Gujarat and Maharashtra. It has posted excellent results with profits up by 131% and revenues jumping. Add.

*TruCap Finance* opened 31 new branches in Q1FY24 taking the total to 103 branches. It plans to focus on loan against Gold. Add.

*Money Times Talk is part of 'Money Times' publication.bs.*