Market News and information.

*Money Times Talk*

 *4 September 2022*

• *Bayer* has launched a pill to treat chronic kidney disease linked to diabetes. A very big positive. Buy.

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• *Rama Phosphates’* big expansion drive at a capex of Rs. 86.25 cr. over 5 years was by internal accruals to maintain its zero-debt status. Its FY23 EPS may cross Rs. 50. Buy for long-term.

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• *Marico* to scale up operations by better reach and higher agility to customers through online sales. This is one of the best FMGC stocks. Add and keep for long term.

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• *Vedavaag Systems* is entering the high value software services of Artificial Intelligence (AI) and Internet of Things (IOT). Its share price, which has fallen from its 52-Week high of Rs 92.45 is poised to hit a new high in the next 12 months. Buy.

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• *GNA Axles* recommended earlier in MONEY TIMES at Rs. 500 has already crossed the Rs. 700 mark. The share is still a hold.

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• *Syngene International* has agreed to acquire a 26% stake inrenewable power producer, O2 Renewable Energy. Add.

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• *Lal Pathlabs* is vigorously trying to improve business prospects by higher volumes and cutting costs. The share may be added.

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• Aluminium prices are in an uptrend again due production cuts in Canada, Europe & USA. *NALCO and HINDALCO* to benefit. Add.

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• *Paradeep Phosphates’* Q1 results and FY22 Directors’ Report clearly indicate that it is on the growth path. Its share which is quoting near its IPO price can double in a year. Buy.

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• *HOEL* to raise Rs. 250 cr. via issue of equity shares and another Rs. 500 cr. via debt for oil exploration. There is a possibility of a Rights issue. Accumulate.

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• *TD Power Systems* to split its Rs. 10 FV of the share to Rs. 2 This will inject liquidity & trading as the share may look affordable to buy. Add in small quantities with strict stop loss limits.

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• *Reddy’s Labs*. is scouting to increase business and has tied- up with a Swiss O to treat neglected diseases. Add.

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• *Zomato* has launched intercity services and hopes to return to the black very soon. Start buying in small lots, but give time for your investments to grow.

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• *Coal India* Chairman has stated at its AGM that it continues to fare exceedingly well in the current year. This cash-rich company deserves a place in every model portfolio.

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• *Paras Defense* stock seems to be consolidating and is on the verge of a breakout. It has the potential to cross Rs. 800 in about six months. Add.

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• Caustic soda plants are closing down in Europe because of gas shortage. Buy *Tata Chemicals* for quick gains.

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• *Tanla Platforms* is mulling a buyback of its shares. At a time when revenue is rising, its smaller equity will boost EPS further. A good short-term and long-term bet. Add.

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• *Escorts Kubota* share is slowly rising and the new management is expected to induce better business visibility. Add.

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• With its 5G launch around the corner, *HFCL* has started its upward march. It may rise another 20% in three months. Buy.

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• As the grave gas shortage makes soda ash companies close down in Europe, *GHCL* (EPS: Rs. 94) and DCW (EPS: Rs. 6.91) are good shares to add.

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• *Dabur* plans to increase FY23 online sales to cross Rs. 100 cr. This FMGC must be added.

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• *HBL Power Systems* has won multiple orders worth over Rs. 600 cr. from the Railways. This share may rise in anticipation of higher revenue visibility. Add.

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• *Mazagon Docks* constructs and repairs warships, submarines and other vessels. It notched 101% higher Q1 EPS of Rs.11.2 against Rs. 30.8 in FY22. Its order book of Rs 43,000 cr. is 7.5x of FY22 revenue and it has identified Rs. 1,60,000 cr. opportunity in the medium term. Its EPS may touch Rs 50. Buy.

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• *Nile Ltd.,* manufacturer of Pure Lead and Lead Alloys, is setting up a Lithium-ion recycling plant and diversifying into natural extracts needed by the nutraceutical, cosmetic, and food industries. Higher demand for its products could lead to FY23 EPS of Rs.90+ against Rs. 80 in FY22. The share, is set to touch Rs 900 in the medium term. Buy.

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• *Dhunseri Ventures*, which is into polyester and PET packaging, is setting up a film packaging unit. It has notched 82% higher Q1EPS of Rs 50.4 against FY22 consolidated EPS of Rs 102.5, which may lead to FY23 EPS of Rs 160+. Buy for 40% gain.

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• *Capacite Infra Projects* offers project design, construction and management services to real-estate developers, builders and government bodies. It notched 548% higher Q1 EPS of Rs 4.2 on 70% higher revenue against FY22 EPS of Rs 7.1, which indicates that FY23 EPS may cross Rs 18. Buy for 20% gain.

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• *Sarda Energy*, integrated steel manufacturer with 20 MMT iron ore mine and 125 MW of hydropower, has notched Q1 EPS of Rs 48.2 as against FY22 EPS of Rs 223.This may lead to FY23 EPS of Rs 230+. Buy for 20% gain.

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• *Suraj Products* producer of Sponge Iron manufactures TMT Bars, Pig Iron and MS Ingots. It notched 34% higher Q1 EPS of Rs 5.5, which may take FY23 EPS to over Rs 24 against Rs 20.7 in FY22. Buy for 20% gain.

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• *Catholic Syrian Bank* has notched 88% higher Q1 EPS of Rs 6.6 against FY22 EPS of Rs 26.4. This could take FY23 EPS to Rs 29. Buy for 30% gain.

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• *Coal India*, the largest coal-producer in the world and a Maharatna PSU, is undergoing massive expansion. It notched 179% higher Q1 EPS of Rs.14.4 against Rs 28.2 in FY22, which may lead to FY23 EPS of Rs 45+. Buy for 30% gain.

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• *RBL Bank’s* Q1 is transformed into a net profit of Rs 201.2 cr. from a net loss of Rs 459.5 cr. YoY on total income of Rs 2, 703 cr. For Q1FY22, it had incurred a net loss due to higher NPA provisions of Rs 1,384.4 cr. The Q1 results indicate that FY23 EPS could be Rs 14.5. Buy for 20% gain.

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• *Antony Waste Handling Cell* notched 39% higher Q1 EPS of Rs 8.2 against 51% higher FY22 EPS of Rs 24. It is doing well with continuous new orders from all quarters and is expected to notch FY23 EPS of Rs 35. Accumulate for 25% gain.

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• *Suryalata Spinning Mills*, one of the largest producers of Synthetic Blended Yarns, has notched 128% higher Q1 EPS of Rs 23 against FY22 EPS of Rs 111.9, which could take FY23 EPS to over Rs 125. Buy for 25% gain.

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• Knowledgeable sources strongly recommend the shares of *Reliance Infrastructure* and *Reliance Power* for the medium term as they expect a strong turnaround and good profits going ahead.

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• With ‘Aatmanirbhar Bharat’ and indigenous defence programs gaining traction, all defence stocks are at record highs. However, *Apollo Mircrosystems* at Rs.148 is way below its all- time high of Rs.500. Its products and solutions are used by ISRO, Ministry of Defence, HAL, BHEL. With bare minimum risk, it could give a quick 50% return in the short term.

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• Hotel stocks have been on a tear on the bourses. *Kamat Hotels*, which runs the Orchid brand of hotels and the Vithal Kamat chain of restaurants trades cheap at a P/E multiple below 5x and could easily double from the current level. Keep it on your radar.

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• Mukesh Ambani has outlined the succession plan at *Reliance Industries* among his three children stating that the next-gen leaders are confidently taking over the reins across its businesses. Any dip towards Rs.2400 will be a good entry opportunity for long term investors.

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• *Lyka Labs* has put up some land holdings in Andheri and Valsad for sale and sought shareholders approval for the same. Seems like the cleaning process is gaining pace after the takeover by IPCA.

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• *Kitex* is participating in a major expansion of Rs.2400 cr. This specialist in infant & Childrenwear has great scope due to its niche market.

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• *Gravita* is a great pick in lead processing. This well-managed company has great potential.

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• *Pondy Oxides*, also from lead processing, is expanding in allied businesses. Virtually debt-free, this company merits special attention.

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• *Sarthak Metals*, a 20% dividend paying co., posted Q1 profit of Rs.8.58 cr. on its modest equity of Rs.13.69 cr. as company’s products are in very good demand. Promoters hold 69.83% and big expansion is planned. The stock is available at a PE of just 7.6x. Buy for good returns by December end.

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• *Vedavaag System* posted Q1 net profit of Rs.2.44 cr. v/s Rs.1.08 cr. in Q4FY22. It’s in the field of internet on things & other e-governance solutions, retail, logistics & educations services. Its 52-week high was Rs.92 but is now available at an attractive Rs.50 cum 6% dividend. Buy for 30% gain.

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• *Indraprastha Medical* available cum 25% dividend is a group company of Apollo Hospitals. For Q1, its net profit shot up sharply to Rs.20.28 cr. Buy for good dividend yield & good gains.

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• Regular dividend paying *Golkunda Diamond Jewellery* posted Q1 net profit of Rs.3.19 cr. v/s Rs.1.19 cr. in Q1FY22 a big jump of 168%. Promoter holding is 73.36%. Grab it.

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• Debt-free *Jai Corp* may prove to be a multi-bagger as it has a very big land parcel of about 3000 acres near the upcoming Navi Mumbai airport apart from other business verticals of manufacturing, SEZ, venture capital, real estate. Promoters own 73% which gives big confidence. Technically, a big breakout is seen on the charts.

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• *Radhika Jeweltech* is recommended by Khambatta Securities for a target price of Rs. 295.

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• NSE listed *Debock Industries* has begun the acquisition of granite mines in the Kishangarh area of Rajasthan.

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• *Riba Textiles* plans to expand capacity by 30%. This 100% exporter of Terry Towels company may deliver 50% returns in 1 year. Its stock trades at a PE of just 7x.

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