🏦 *TOWER TALK* 🏦
_August 20 - 25, 2018_
😐 Although the Q1 results of Deepak Fertilisers & Petrochemicals Corporation were not very impressive, the stock looks attractive at the beaten down level. The management plans to incur capex of Rs.5300 crore, of which Rs.4500
crore will be funded through internal accruals.
🙂 Bharat Electronics has obtained defence orders worth Rs.9200 crore, of which 15% is expected to come in as advances. Supplies will begin in about 2 years and margins of 15-17% augur well for the company. Buy.
🙂 International paper prices are on the rise. J.K. Paper, which can easily utilise its idle capacity to meet the rising demand, offers good investment opportunity.
🙂 Parag Milk Foods is setting up cross border dairies for selling value-added products. Strong brands and growing top-line bode well for the company. Accumulate.
🙂 Aarti Industries is reportedly going great guns. Based on its Q1 results, the company may notch an EPS of Rs.42 this year. Buy.
🙂 PC Jeweller not only posted good numbers for Q1 but also cut down debts by Rs.426 crore on the back of higher sales and lower inventories. The management intends to reduce debts further by Rs.1000 crore in the next two months. An attractive buy.
🙂 Sunteck Realty reported 67% higher PAT for Q1. Its bookings are up by 42% and point towards higher income going forward. A good buy.
🙂 Tata Chemicals reported 14% higher PAT of Rs.270 crore on the back of higher revenues. Buy for the long-term.
🙂 Dewan Housing Finance Corporation reported 35% higher PAT of Rs.435 crore and such performance is likely to
be sustained going forward. Buy.
🙂 Indian Oil Corporation plans to bet Rs.20000 crore on city gas. PAT jumped 50% in Q1 on the back of inventory gains. The company pays good dividends and has great potential going forward. Buy.
🙂 DCM Shriram plans to incur capex of Rs.1300 crore for enhancing sugar cane crushing capacities, chemical and
captive power plants. Buy for the long-term.
🙂 PVR is set to acquire SPI cinemas in a Rs.850 crore cash-cum-stock deal. Buy.
🙂 Zensar Technologies looks good having begun the year on a strong note with 74% higher PAT for Q1..
🙂 Talwalkar Lifestyles reported 27% higher PAT for Q1. Health awareness is least in our country and this business has huge scope in the times to come.
🙂 GAIL (India) looks good for the long-term with gas prices likely to take another small hike. Average natural gas
prices have also risen. The company reported excellent results for Q1 and is expanding its rural reach. Accumulate.
🙂 Bosch reported a strong quarter with 42% higher OAT of Rs.431 crore. The entire industry is on a roll and this auto component major is no exception. Buy.
🙂 Sudarshan Chemical Industries’ profitability in Q1 is higher than the profitability reported for the entire fiscal 2018. Its future looks bright. Buy.
🙂 Hindalco Industries posted good numbers for Q1. The maintenance shutdown at one of its smelters is now over and the management has guided for a better performance going forward. Buy for the long-term.
🙂 The Kotak Mahindra Bank share is slipping on non-compliance of SEBI norms by the promoters (equity dilution).
These minor hiccups will not hamper its working. Accumulate on dips for decent returns.
🙂 Astrazeneca Pharma India has obtained permission from the Indian Drug Controller for import and sale of its
Olaparib tablets used in the treatment of breast cancer. Buy.
🙂 Rajesh Exports posted excellent results for Q1. It has orders worth Rs.44628 crore in hand. This jewel must find a place in every portfolio.
🙂 NBCC (India) has received Rs.250 crore worth orders from SAIL. The company has the potential to overtake bigger giants. A good buy.
🙂 Saksoft is growing at 20-25% and the management believes that the company is at an inflection point. The stock is available at 10x FY19E earnings and has the potential to double from the current level. Buy immediately.
🙂 According to sources, Capital First and IDFC Bank can be bought for 50% returns.
🙂 Patel Engineering posted a consolidated EPS of Rs.2.3 in Q1 on an equity capital of Rs.15.70 crore. It is likely to notch an EPS of Rs.11+ in FY19. The stock is poised to touch Rs.110 on a reasonable P/E of 8.45x.
🙂 Everest Industries is expected to post an EPS of Rs.60 in FY19 based on its Q1 EPS of Rs.18. 8. The stock is expected to cross Rs.700.
🙂 International Paper APPM has posted an EPS of Rs.11 in Q1. Based on its going, an EPS of Rs.50 can be anticipated
for FY19. A reasonable P/E of 15x will take its share price to Rs.750.
🙂 Sintex Industries is set to notch an EPS of Rs.3.5 in FY19. The stock trades cheap at a forward P/E of just 5.62x.
🙂 Some funds and HNIs have evinced interest in Rain Industries after the excellent Q1 working posted by the company, based on which an EPS of Rs.38 can be anticipated for CY18. The stock can cross Rs.300.
🙂 Shreyans Industries is on course to notch an EPS of Rs.30 in FY19. The stock is available cheap and can cross
Rs.280.
🙂 An Ahmedabad based analyst recommends ASM Technologies, Arihant Capital Markets, Cineline India, Freshtrop Fruits, Goldiam International, Haldyn Glass, IOL Chemicals & Pharmaceuticals, Kriti Industries (India), Makers Laboratories and Savera Industries. From his last week’s recommendations, Khaitan Chemicals
& Fertilizers appreciated 12% from Rs.11.59 to Rs.12.99 while Bharat Agri Fert & Realty appreciated 6% from Rs.163.85 to Rs.174.5 in just 1 week!
_August 20 - 25, 2018_
😐 Although the Q1 results of Deepak Fertilisers & Petrochemicals Corporation were not very impressive, the stock looks attractive at the beaten down level. The management plans to incur capex of Rs.5300 crore, of which Rs.4500
crore will be funded through internal accruals.
🙂 Bharat Electronics has obtained defence orders worth Rs.9200 crore, of which 15% is expected to come in as advances. Supplies will begin in about 2 years and margins of 15-17% augur well for the company. Buy.
🙂 International paper prices are on the rise. J.K. Paper, which can easily utilise its idle capacity to meet the rising demand, offers good investment opportunity.
🙂 Parag Milk Foods is setting up cross border dairies for selling value-added products. Strong brands and growing top-line bode well for the company. Accumulate.
🙂 Aarti Industries is reportedly going great guns. Based on its Q1 results, the company may notch an EPS of Rs.42 this year. Buy.
🙂 PC Jeweller not only posted good numbers for Q1 but also cut down debts by Rs.426 crore on the back of higher sales and lower inventories. The management intends to reduce debts further by Rs.1000 crore in the next two months. An attractive buy.
🙂 Sunteck Realty reported 67% higher PAT for Q1. Its bookings are up by 42% and point towards higher income going forward. A good buy.
🙂 Tata Chemicals reported 14% higher PAT of Rs.270 crore on the back of higher revenues. Buy for the long-term.
🙂 Dewan Housing Finance Corporation reported 35% higher PAT of Rs.435 crore and such performance is likely to
be sustained going forward. Buy.
🙂 Indian Oil Corporation plans to bet Rs.20000 crore on city gas. PAT jumped 50% in Q1 on the back of inventory gains. The company pays good dividends and has great potential going forward. Buy.
🙂 DCM Shriram plans to incur capex of Rs.1300 crore for enhancing sugar cane crushing capacities, chemical and
captive power plants. Buy for the long-term.
🙂 PVR is set to acquire SPI cinemas in a Rs.850 crore cash-cum-stock deal. Buy.
🙂 Zensar Technologies looks good having begun the year on a strong note with 74% higher PAT for Q1..
🙂 Talwalkar Lifestyles reported 27% higher PAT for Q1. Health awareness is least in our country and this business has huge scope in the times to come.
🙂 GAIL (India) looks good for the long-term with gas prices likely to take another small hike. Average natural gas
prices have also risen. The company reported excellent results for Q1 and is expanding its rural reach. Accumulate.
🙂 Bosch reported a strong quarter with 42% higher OAT of Rs.431 crore. The entire industry is on a roll and this auto component major is no exception. Buy.
🙂 Sudarshan Chemical Industries’ profitability in Q1 is higher than the profitability reported for the entire fiscal 2018. Its future looks bright. Buy.
🙂 Hindalco Industries posted good numbers for Q1. The maintenance shutdown at one of its smelters is now over and the management has guided for a better performance going forward. Buy for the long-term.
🙂 The Kotak Mahindra Bank share is slipping on non-compliance of SEBI norms by the promoters (equity dilution).
These minor hiccups will not hamper its working. Accumulate on dips for decent returns.
🙂 Astrazeneca Pharma India has obtained permission from the Indian Drug Controller for import and sale of its
Olaparib tablets used in the treatment of breast cancer. Buy.
🙂 Rajesh Exports posted excellent results for Q1. It has orders worth Rs.44628 crore in hand. This jewel must find a place in every portfolio.
🙂 NBCC (India) has received Rs.250 crore worth orders from SAIL. The company has the potential to overtake bigger giants. A good buy.
🙂 Saksoft is growing at 20-25% and the management believes that the company is at an inflection point. The stock is available at 10x FY19E earnings and has the potential to double from the current level. Buy immediately.
🙂 According to sources, Capital First and IDFC Bank can be bought for 50% returns.
🙂 Patel Engineering posted a consolidated EPS of Rs.2.3 in Q1 on an equity capital of Rs.15.70 crore. It is likely to notch an EPS of Rs.11+ in FY19. The stock is poised to touch Rs.110 on a reasonable P/E of 8.45x.
🙂 Everest Industries is expected to post an EPS of Rs.60 in FY19 based on its Q1 EPS of Rs.18. 8. The stock is expected to cross Rs.700.
🙂 International Paper APPM has posted an EPS of Rs.11 in Q1. Based on its going, an EPS of Rs.50 can be anticipated
for FY19. A reasonable P/E of 15x will take its share price to Rs.750.
🙂 Sintex Industries is set to notch an EPS of Rs.3.5 in FY19. The stock trades cheap at a forward P/E of just 5.62x.
🙂 Some funds and HNIs have evinced interest in Rain Industries after the excellent Q1 working posted by the company, based on which an EPS of Rs.38 can be anticipated for CY18. The stock can cross Rs.300.
🙂 Shreyans Industries is on course to notch an EPS of Rs.30 in FY19. The stock is available cheap and can cross
Rs.280.
🙂 An Ahmedabad based analyst recommends ASM Technologies, Arihant Capital Markets, Cineline India, Freshtrop Fruits, Goldiam International, Haldyn Glass, IOL Chemicals & Pharmaceuticals, Kriti Industries (India), Makers Laboratories and Savera Industries. From his last week’s recommendations, Khaitan Chemicals
& Fertilizers appreciated 12% from Rs.11.59 to Rs.12.99 while Bharat Agri Fert & Realty appreciated 6% from Rs.163.85 to Rs.174.5 in just 1 week!
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