TOWER TALK

  July 23 - July 29, 2018

 1. 💊 *Glenmark Pharmaceuticals* has received final ANDA (abbreviated new drug application) approval for its Colesevelam Hydrochloride medicine. BUY for the long-term.

 2. 🎛 *Bharat Electronics* has signed a MoU with Saab, Sweden, for jointly marketing L-B and 3D Air Surveillance Radars, primarily for the defence and civil security. A big POSITIVE for the company.

 3. 💸 The government is likely to infuse ~₹2816 crore into *Punjab National Bank* to strengthen its balance sheet. ACCUMULATE and hold for two years to reap good returns.

 4. 🚛 *Ashok Leyland* reported excellent results for Q1FY19 with an EPS of ₹1.26 vs ₹0.38 in Q1FY18. A worthy BUY.

 5. 💸 *South Indian Bank* does not have any asset quality concerns and has reasonable valuations. Its current share price merits a BUY.

 6. 👔 *Bombay Dyeing & Manufacturing Co.* is aggressively promoting its own brand of shirts ‘Cezari’ through its exclusive outlets. ACCUMULATE.

 7. 🏭 Auto component major *Jay Bharat Maruti* reported excellent results for Q1. The stock is available at a P/E of 15x vs the industry average of 36x. Maruti Suzuki holds around 36% stake in the company. An excellent BUY.

 8. 🏘 *Oberoi Realty* offers an upside of around 20% from the current level on account of new launches. It recently made a QIP allotment of ~₹1200 crore priced at ₹500/share. A good BUY.

 9. 🍤 The management of *Waterbase* is slowly increasing its stake via open market operations. The stock is available cheap at nearly one-third its 52-week high rate. Don’t miss this opportunity to BUY.

 10. 💉 *Aurobindo Pharma* is expected to buy Apotex’s commercial operations to expand its European business. BUY for the long-term.

 11. 💸 *Federal Bank* reported 25% growth for Q1 on account of better quality assets and growing demand for loans and advances. The next few quarters are also expected to be good. A good BUY.

 12. 🏭 India’s biggest pure play consumer company *Hindustan Unilever* posted double-digit sales growth in Q1 on the back of higher rural demand. BUY.

 13. 🏭 *Britannia Industries* is setting up a greenfield unit in Assam at a capex of ₹200 crore to cater exclusively to the northern territories. The stock is poised to rise further. BUY.

 14. 💸 *Bandhan Bank* reported 47% higher PAT for Q1 at ₹481.71 crore. Its future looks equally good. BUY.

 15. 📽 *Zee Entertainment Enterprises* reported 19% YoY growth in ad revenue and over 31% growth in PAT. BUY for the long-term.

 16. 🏗 An associate of *Kridhan Infra* has received a new project worth ₹222.6 crore. A positive for the latter since it holds 51% stake in the associate company. The stock seems under-priced. BUY.

 17. 💊 *Cadila Healthcare* plans to raise up to ₹1000 crore via various options to fund its expansion plans. It may be prudent to BUY this share.

 18. 🏭 *JK Tyre & Industries* reported PAT of ₹64.24 crore in Q1 on the back of robust sales. Its FY19E EPS is likely to cross ₹11. The stock has the potential to appreciate around 50% within a year. BUY.

 19. 📱 *Idea Cellular* is losing ground to big operators due to tough competition. It may be prudent to SELL your holdings.

 20. 🚰 *Srikalahasthi Pipes* is one of the biggest manufacturers of ductile pipes in India. Its share is available cheap at a trailing P/E of just 7x and merits a BUY.

 21. 🏭 *Reliance Industries* contemplates raising ₹40000 crore this year to expand its consumer business. BUY.

 22. 💉 *Sun Pharmaceutical Industries* has received USFDA approval for its Infugem injection used to treat cancer. A big POSITIVE.

 23. 🖥 *Mindtree* reported 30% higher PAT for Q1. It has 339 active clients and a headcount of around 19,000 employees. BUY for the long-term.

 24. 🛢 *Sintex Industries* is set to notch an EPS of ₹3.5 in FY19. The stock trades cheap at a forward P/E of just 5x. BUY.

 25. 🔋 The robust Q4 and FY18 results posted by *Indo-National (Nippo Batteries)* were ignored by investors. Its share book value is just ₹560 on a small equity of ₹3.75 crore. The stock is poised to cross ₹700 in the short-term. BUY.

 26. ⚗ *KSE (formerly Kerala Solvents)*, which posted an EPS of ₹218 in FY18 on a small equity of ₹3.2 crore, is likely to notch an EPS of ₹260 in FY19. It is a strong bonus candidate as well. A forward P/E of 13x (industry P/E is 35x) will take its share price to ₹3900 in the medium-term.

 27. 💻 *Honeywell Automation*, which posted an EPS of ₹283 in FY18, is expected to notch an EPS of ₹368 in FY19. The stock is poised to touch ₹25000. BUY.

 28. 🏭 *Hinduja Global Solutions* is expected to notch an EPS of ₹115+ in FY19 and ₹128 in FY20. The stock is likely to touch ₹1200. BUY.

 29. 📞 *Vindhya Telelinks* is available cheap at a forward P/E of 6x and is expected to rise to ₹1500 on a P/E of 10x. BUY.

 30. 🎥 *Eros International Media* has posted excellent numbers for Q4FY18 and FY18. It has a strong pipeline of theatrical and original content, which is yet to be fuelled by a ₹1000 crore JV investment with Reliance. The stock may head towards the ₹200 mark. BUY.

 31. 💳 *Cox & Kings* has approved the demerger of its highly profitable Foreign Exchange division, which falls under Leisure-India. Its International business has stabilized after the geopolitical volatility last year. It is expected to notch an EPS of ₹28 in FY19. The stock has the potential to cross ₹280 on a reasonable P/E of 10x. BUY.

 👁‍🗨 An Ahmedabad based analyst recommends *Damodar Industries* and *Hitech Corporation*.

 📣 The latest grey market premium for the IPO of *TCNS Clothing Co.* is ₹10-12.

 📣 The latest grey market premium for the IPO of *HDFC Asset Management Co.* is ₹350-360 and the cost of its minimum application form is ₹1300-1350.