Indian share market 26-12-21.

 Indian Stock Market Expections 26 December 2021

Bajaj Hindustan, the 3rd largest sugar company, will benefit from higher Ethanol prices. Stock is trading at attractive valuation in terms of mktcap/sales. It may give 50% returns within one year.

  Kirloskar Oil Engines, one of the largest silent Genset maker, trades at attractive PE valuations of 12x. Its 100% NBFC subsidiary to unlock value unlock soon. Buy for 50% returns within one year

  Defence Sector is gathering fancy in the stock market. Much undervalued and promising defence stock Apollo Micro Systems is poised for strong re-rating.

  Dhunseri Tea & Industries and Dhunseri Ventures which lost around 40% from their year high levels on lower volumes are expected to gain their lost ground with their Q3 results.

  Banswara Syntex posted H1 profit of Rs.47.54 cr. v/s Rs.14.93 cr. in H1FY21. It has huge reserves of Rs.352.67 cr. on its equity of Rs.17.12 cr. From its recent high Rs.256, it is now available at Rs.228 at PE of just 9x.

  KIC Metaliks posted a sharp turnaround with H1 net profit of Rs.21.52 cr. v/s loss of Rs.5.83 cr. in H1FY21. Recently, it redeemed Rs 45.10 cr. of Preference Shares from the profits. Now available at a PE of only 4x around Rs.49 against its recent high of Rs.69.

  Simran Farms posted H1 net profit of Rs.8.88 cr. on its small equity of only Rs.3.79 cr. leading to H1 EPS of Rs.23.10. Recently, ace investor Dolly Khanna bought shares at Rs.168, which is now available at PE of 4x around Rs.174 against its high of Rs 211.

  Parsvnath Developers has a  huge land bank and boom in real estate and infra stocks makes it attractive at Rs.22. The stock that once traded at Rs.300+ seems good risk bearing investors. The promoter holds around 70%.

  Southern Petrochemicals posted 629% higher H1 net profit of Rs.98.59 cr. v/s Rs.13.51 cr. for H1FY21. Available at PE of just 5x at Rs.51 against its recent high Rs.68. Company has converted its plant to gas, which has reduced its energy cost.

Vedavaag Systems posted 67% higher H1 net profit of Rs.4.73 cr. v/s Rs.2.84 cr. in H1FY21. The company in getting into emerging technologies such as AI, ML, IOT & CLOUD led by a veteran. Stock is available at Rs.54 against its recent high Rs.69..

👉A consortium led by RIL may buy bankrupt Sintex Industries, a cotton yarn & quality fabric manufacturer supplying products to renowned entities worldwide. With strong hands entering, a good recovery is distinctly possible. Buy.

 👀Indonesia is seeking defense technology from India, especially for its missile programs. Bharat Dynamics will be a big beneficiary. Add.

 👉 Maruti plans to introduce Jimny brand SUV, which is in the global markets for 50 years, to its portfolio. This compact vehicle is already being made and exported to the Middle-East. Add Maruti in small quantities.

 👉Lupin to foray into diagnostics, which is a fast-growing business. As it faces challenges in the US markets including pricing pressures, this small restructuring could bolster its profitability in the long run. Add.

👉 Bank of Maharashtra, a turnaround case, has cut home loan rates by 40bps. It is also revamping its business model. Add with a long-term perspective.

In spite of sharp volatility in CNG and PNG prices, Indraprastha Gas is set to post bumper profits on the back of rising demand. Add.

👉 Volume revival in utility vehicles with a strong order book, M&M is likely to be valued better than what it is now. Add.

👉A large pipeline of blockbuster movies and the big pent-up demand from viewers will lead to a big revival of Inox Leisure. Start accumulating for a 50% likely rise in share price.

👀Rattan India Enterprises is posting higher volumes and rising prices as its E-bikes attract a big demand. It also makes Drones, for which too there is a huge demand. Buy this share before it is too late.

👉 Uflex is one packaging major which has gone unnoticed by investors in spite of its good working. The share is due for a big jump. Add.

👉BEML has signed an MOU with RITES to leverage each other’s expertise and technologies to tap domestic and overseas opportunities. BEML will make railway and metro coaches for the latter. A good share for the long-term.

👉 The stock price of Lyka Labs refuses to soften ever since Money Times recommended it weeks back and continues to rise and is at Rs. 223. With IPCA now its main stakeholder, the business opportunities for it have brightened further. Add even now.

👉 Pfizer has stated that its Covid-19 antiviral pill Paxlovid reduces hospitalization or death by 88% for high-risk patients if treated soon. It is also effective against the Omicron variant. The share price can rise further. Add.

Real Estate developer DLF is expected to start construction of M3M office space construction in Gurugram and will invest Rs. 1500 crore on this project. Add.

👉Amid steep valuations and uncertainty, MFs were reported to be adding Laurus Labs and Alembic Pharma, which according to them have high earnings visibility. Should retail investors remain behind? Accumulate.

👉 The stock of Tata Consumer lost a big ground over the past few months amid the rising pressure cost in the FMGC sector. However, its profitability is reasonably good and it ought to be picked up at the current levels. 

👉 The management of ITC has stated that it is open to demerging its cigarette, FMCC, and IT units at appropriate times. A value unlocking is possible in the long run. Start accumulating.

👉VI (Vodaphone-Idea) plans to get back into the game with a 4x rise in capex to $ 2 bn. It wants to take Jio and Airtel head on. Risk-bearing investors may add with a horizon of three years.

👉 The Committee on Defense has recommended 3 additional Aircraft carriers to the Indian Navy. Obviously, a big chunk of the order will flow to Mazagon Docks. An excellent long-term investment. Buy.

👉Cash rich Manaksia Ltd’s. sponge iron and value-added steel products, pilfer proof closures are used for liquor, liquids, and aluminum rolled products in coil and sheet form used in closures, bus bodies, flooring and general engineering purposes has notched 46% higher Q2 EPS of Rs 5.1 and 89% higher H1 EPS of Rs 9.8, which could take FY22 EPS to Rs 18 against FY21 EPS of Rs 8.2. The share can rise by about 50%. Buy. 

Aries Agro manufacturer of Micronutrients, Crop\Plant Protection, Speciality Nutrients, Water Soluble NPK and Hydroponics and Consultancy since 50 years has notched Q2 EPS of Rs 8.6 and H1 EPS of Rs 13.1, which could take FY22 EPS to Rs 16 as against Rs 13.4 in FY21. The share which made a high of Rs 290 on 24 Oct 2017 could fetch a gain of 40%. Buy.

👉 Shiva Global Agro Industries manufactures fertilizers, soil and crop health products, oil, de-oiled cakes has notched 192% higher Q2 EPS of Rs 3.5 and 134% higher H1 EPS of Rs 8.2, which could take FY22 EPS to Rs 17. A reasonable P\E of 7.5x could take its share price to Rs 127.50. Buy.

The Anup Engineering caters to a wide range of process industries like Oil & Gas, Petrochemicals, LNG, Fertilizers, Chemicals/ Pharmaceuticals, Power, Water, Paper & Pulp and Aerospace with its extensive product range has notched 34% higher Q2 EPS of Rs 16 and 40% higher H1 EPS of Rs 24, which could take FY22 EPS to Rs 68 as against FY21 EPS of Rs 52.5. Buy for 30% gain.

👉 Sree Rayalaseema Hypo Strength, manufacturer of wide variety of organic and inorganic chemicals having a 10MW of power plant and 11.25 MW of wind power has posted 28% higher Q2 EPS of Rs 12 and 31% higher H1 EPS of Rs 22.6, which may take FY22 EPS to Rs 46 against Rs 35.3 in FY21. A reasonable P\E 10x could take the share price to Rs 460. Buy.

👉Indian Metals & Ferro Alloys, which declared 1:1 bonus has notched 228% higher Q2 EPS of Rs 53.2 and 255% higher H1 EPS of Rs 89.9, which could take FY22 EPS to Rs 160 as against Rs 61.7 in FY21 on the back of strong operational performance sustained by healthy market conditions of demand & price have helped boost profitability. Accumulate for 30% gain.

👉Technocraft Industries India, which is in the business of drum closures, scaffolding, formwork, yarn & fabrics and engineering and design and having a power plant of 15 MW has notched 205% higher Q2 EPS of Rs 26.9 and 158% higher H1 EPS of Rs 54.9, which could take FY22 EPS to Rs 110 as against FY21 EPS of Rs 53.2. A reasonable P\E of 14x could take its share price to Rs 1540. Buy.

 👉 Soya manufacturer of Vanaspati and cooking oils with applications products for a bakery like biscuits, puffs, pastries and other applications has posted 156% higher Q2 EPS of Rs 11.6 and 243% higher H1 EPS of Rs 17, which could take FY22 EPS to Rs 40 against Rs 15.6 in FY21. A P\E of 8x may take the share price to Rs 320 going ahead. Buy.

👉 Morganite Crucible manufacturers silicon carbide and clay graphite crucibles used in non ferrous alloys that have applications in auto, industrial machinery, sanitary fittings, electrical equipment, railways, etc. has posted 278% higher Q2 EPS of Rs 9.4 and 1667% higher H1 EPS of Rs 21.4, which could lead to FY22 EPS of Rs 55+ on its tiny equity of Rs 2.8 cr. Buy for 50% gain.

👉Cash-rich Kalyani Steels manufactures various components for commercial vehicles, two-wheelers, diesel engines, bearings, tractors, turbines, defence and rail and undertaking capex has notched 37% higher Q2 EPS of Rs 14.2 and 144% higher H1 EPS of Rs 30.2, which may take FY22 EPS to over Rs 65. The share is poised to touch the Rs 650 mark.

DCM Nouvelle, which commenced yarn and spinning operations in 1991 at Hisar, has notched over 10500% higher Q2 EPS of Rs 22.2 and H1 EPS of Rs 37.8, which could take FY22 EPS to Rs 75+ when it may get debt free also. The share is poised to double. Buy.

👉 The recent acquisition spree of shares from the open market by the promoters of Kitex Garments suggests something is cooking in the company. Buy the stock for a good 30-50% up-move.

👉Despite all the hulabaloo, the Cafe Coffee Day stores as well the machines are still up and running at various locations. Not to forget it has vast plantations as well. With Arabica coffee at a multiyear high, this stock can turn out to be a multi-bagger.

From a 52-week high of Rs.300, the stock price of Tata Motors DVR has corrected to Rs.230 and provides a good entry opportunity for medium to long term investors.

👉 Sadbhav Infra, which used to trade at Rs.100+ now trades at Rs.14 with its 52-week low at Rs.12.50. There were talks of Adani taking over the co. a few months back. At the CMP, the risk-return ratio looks favourable and one can consider investing in the stock.

👉With textile stocks on fire, one can look at Bannari Amman Spinning, which is into spinning as well as garment manufacturing. At Rs.72, the stock trades at a P/E multiple of less than 4x and there’s hardly anything to lose.

Since sugar and ethanol continue to be in the news for good reasons, Praj Industries has a long runway.

 👉Kirloskar Ferrous is one of the fastest expanding companies both organic and inorganic actions. Do not miss.

 👉Vardhaman Textiles has one of the strongest balance sheets in the textile industry. A great option to ride the textile journey.

👉The HCC turnaround story looks promising. Company posted Rs 320 cr. profit in H1FY22. vs loss of Rs 800 cr. in H1 FY21. Don’t miss this infra major for excellent returns in the coming year.

👉PFC posted super Q2 results. With an EPS of Rs10, it can post FY23 EPS of 40+ and the stock has corrected to 3 PE. It’s an opportunity to buy, stock may double in 1 year.

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