Golden Opportunities During Global Uncertainties:

In keeping with SEBI guidelines, our MTTs which have consistently outperformed market expectations, will no longer feature target prices or recommendations to ‘BUY’ or ‘Add’. Readers must, therefore, exercise their own judgement and evaluate the future prospects of the stock given its past performance, industry prospects in the backdrop of a growing economy and in consultation with their investment adviser.

As per market grapevine, although India is promising with a bright future but scams are bound to surface. The common perception of Indian trader or businessman is that ‘so long I am not caught, why should I worry?’ FPIs are busy with this 1000 points correction and the rally in options has become their mainstream income, which is nothing short of a scam. Though they may call it a business skill, it is nothing but a scam where retail investors are looted. Finance Minister said that there is froth in the F&O segment.

As per astrology view, some important turning dates are 19, 23 & 30rd August 2024. Expect stock-specific profit booking between August 19-30. Be careful for the next few days as Mars is in conjunction with Jupiter since 13th August. This conjunction is a challenging alignment with Saturn, which some astrologers say could restrict opportunities, cloud the vision and block the forward momentum. This negative energy will heighten frustration, restlessness and harsh behaviour. For stock market investors/traders, this period could lead to a pause and a period of heightened volatility.

As per market grapevine, August has seen rumors of correction as 1000 companies exited the pledge list and 1000 companies got added to extra surveillance measure (ESM) list and the Nifty fell 23913 from 25800 before shooting up again to 24541 on Friday. The million-dollar question now is the impact of August's monthly expiry on traders. As per market grapevine, on 4th June, FPIs including George Soros were heavily short and paid the price. HNIs have liquidated 1000 pledged positions with another 1000 likely to move to the ESM list. SEBI may adjust lot sizes to Rs.20 lakh but uncertainty remains when it will happen.

As per market veterans, Q1FY25 results are generally average with only a few standout performances. Most stocks appear overvalued, so investors should analyze results carefully and consult their financial advisor before making new purchases or booking profits. Broad market gains seem limited with future gains likely to be stock-specific and driven by index management.

• As per IMF’s Gita Gopinath, India’s growth better than expected to become 3rd largest economy by 2027. Great news for India and for investors.
• In 25th November MTTs, Bondada Engineering given at Rs.444 touched Rs.3250 during the week - a gain of 632%.
• In 21st January MTTs, HFCL was given at Rs.88 hit Rs.146 during the week - a gain of 66% & still looks good.
• In 17th Feb MTTs, Lehar Footwears given at Rs.132 touched Rs.262 during the week - a gain of 98%.
• In 6th April MTTs, Kaka Industries given at Rs.179 touched Rs.294, Pee Cee Cosma given at Rs.415 touched Rs.599 during the week.
• In 20th April MTTs, Kriti Industries given at Rs.133 touched Rs.258 during the week - a gain of 94%.
• In 27th April MTTs, Kriti Nutrients given at Rs.110 touched Rs.167 during the week - a gain of 52%.
• In 1st June MTTs, SNL Bearings given at Rs.365 touched Rs.415 & still looks good. Vasundhara Rasayan given at Rs.221 touched Rs.398 during the week, a gain of 80%. Now it is better to book profit fully in Vasundhara Rasayan. Anantraj given at Rs.385 touched Rs.605, a gain of 57%& still look good.
• In 8th June MTTs, Crest Ventures given at Rs.417 touched Rs.485 & still look very good, Morepen Lab given at Rs.48 touched Rs.63 & still look very good.
• In 15th June MTTs, Anantraj given at Rs.424 touched Rs.605 & still looks good, HFCL given at Rs.118 touched Rs.146 & still looks good.
• In 22nd June MTTs, Kopran given at Rs.253 touched Rs.288 during the week.
• In 29th June MTTs, BL Kashyap & Sons given at Rs.90 touched Rs.119, VLS Finance given at Rs.293 touched Rs.368 during the week.
• In 6th July MTTs, Pee Cee Cosma given at Rs.446 touched Rs.599 during the week.
• In 13th July MTTs, Kitex Garments given at Rs.216 touched Rs.339, a gain of 57%, Super Crop Safe given at Rs.12.60 touched Rs.19.44 - a gain of 54% during the week. Now it is better to book profit in Super Crop Safe.
• In 20th July MTTs, Morepen Lab given at Rs.54 touched Rs.63 on Friday 2nd August & still looks good.
• Last week in 27th July MTTs, Super Crop Safe given at Rs.13.75 touched Rs.19.44 during the week. Now it is better to book profit. HFCL given at Rs.123 touched Rs.146 & still looks good.
• Morepen Labs' Q1FY25 profit jumped 147%. India's medical devices market to grow 4.5x to $50 bn. by 2030 and reach $250 bn. by 2047. It expands its API capacity to 600 KL and filed 6 new patents. Strong growth outlook.
• PG Foils posted 300% higher Q1FY25 PAT of Rs. 12 cr. with an EPS of Rs. 9.75, up from Rs. 3 cr. in Q4FY24. Stock is attractive at Rs. 199 compared to its 52-week high of Rs. 297.
• GAIL posted 77% higher Q1FY25 PAT and may cross its 52-week high of Rs.246 in August.
• As per market grapevine, Anantraj, Crest, Everest Kanto Cylinder, GAIL, Grauer Weil, HCC, HFCL, ITHL, ITD Cementation, Indo Amines, Prakash Ind., Morepen Labs, Pen Inds., RDB Rasayan, Sagarsoft, Univastu and may surpass their 52 weeks highs.
• Univastu posted 289% higher Q1FY25 NP of Rs.2.1 cr. Keep on your radar.
• Debt-free Grauer & Weil (India) posted 74% higher Q1FY25 NP of Rs. 50.71 cr. from Rs. 29.17 cr. in Q4FY24. With 19.7% ROCE, 26% ROE, Rs. 45.34 cr. equity and Rs. 813 cr. reserves. It has also received AS9100 Aerospace Certification. A strong performer.
• ITC promoted International Travel House posted PAT of Rs. 6.71 cr. on income of Rs. 55.75 cr. with an EPS of Rs. 8.39 and paid 50% dividend for FY24. Stock may surpass its 52-week high of Rs. 781.
• Everest Kanto Cylinder's Q1 PAT surged 113% to Rs. 27.90 cr.? from Rs. 13.11 cr. in Q4FY24 signaling strong growth potential for FY26.
• Pennar Industries posted Q1 PAT of Rs. 26.80 cr. on sales of Rs. 741 cr. & set up a new MEA subsidiary. Its order book at Rs. 800 cr. in India and $ 52 mn. in USA may lead the stock to surpass its 52-week high of Rs. 204.
• Lahoti Overseas posted 943% higher Q1 PAT of Rs.3.86 cr. on its equity of Rs.5.85 cr. with huge reserves of Rs.183 cr. Foreign cos. & NRIs hold 17.02% & 3 HNIs hold 2.60%. Stock may surpass its 52 weeks high Rs.57.
• RDB Rasayan's Q1 PAT rose Rs.7.33 cr. with an EPS of Rs.4.14. Lower crude oil prices may boost future performance. Promoters hold 69.83%, corporates hold 13.23% and HNI Sangeetha S holds 2.16%. Stock may surpass its 52-week high of Rs.185.
• Indo Amines posted 112% higher Q1 PAT of Rs.19.31 cr. ROCE & ROE 17.1 & 17.05 are quite good. Stock may surpass its 52 weeks high Rs.185.
• Crest Ventures, a real estate firm with Rs.10,000 cr. in revenue potential, posted 740% higher Q1 PAT with an EPS of Rs.17.47. Promoters hold 70%, HNIs hold 25%. Stock may post substantial gains.
• Nahar Industrial Enterprises, a vertically integrated textile & sugar producer with 2,500 TCD unit, is expanding into real estate across residential, commercial & warehousing sectors. It trades at a low Price: BV ratio of 0.68x.
• ABM Knowledgeware, a leader in e-Governance and smart city solutions, information security, cyber security, smart water management, SAP practice, technology enabled applications. It has a strong order book & reserves and is a potential game-changer.
• Renaissance Global, which makes branded jewelry for top global brands trades at a low PE of 12x as against the industry average of PE of 40x, making it a strong buy.
• Srestha Finvest's board will meet on 19th Aug 2024 to consider raising funds through equity or convertible instruments.
• Hi-Tech Pipes' Q1FY25 PAT jumped 125% YoY with 35% higher revenue of Rs.866.98 cr. and total sales volumes at 1,22,155 tonnes.
• GRM Overseas' Q1FY25 revenue grew 16% YoY with PBT at Rs.2434.90 lakh and PAT at Rs.1802.32 lakh with an EPS of Rs.3 per share.
• Sarveshwar Foods' Q1FY25 revenue grew 24% YoY with EBITDA up 11% YoY to Rs.1406.45 lakh and PAT up 6% YoY to Rs.308.87 lakh. The board approved a Rs.250 cr. fund raising.
• PC Jewellers' Q1FY25 PAT was Rs.154 cr. with revenue up 499% YoY to Rs.401 cr. 12 out of 14 banks approved its One-Time-Settlement Offer.
• Motisons Jewellers' board approved a Rs.170 cr. fund raise with FII/FPI investors like North Star Opportunities Fund and Eminence Global Fund among the proposed allottees.
• Rama Steel Tubes is entering the defence sector with a new wholly-owned subsidiary, Rama Defence Pvt. Ltd.
• Salasar Techno Engineering's Q1FY25 EBITDA grew 19.6% YoY, revenue grew 12.3% YoY to Rs.2,940 mn. and PAT was Rs.104.9 mn. The order book stood at Rs.24,019 mn.
• Nandan Denim's Q1FY25 PAT jumped 339% YoY with revenue up 30% YoY to Rs.721.62 cr. and EBITDA up 45% YoY to Rs.34.48 cr.
• Srestha Finvest's Q1FY25 revenue grew 1634% YoY to Rs.39.50 cr. and PAT grew 6965% YoY to Rs.31 cr. with PAT margins zooming from 19.27% to 78.50%.
• Eraaya Lifespaces raised Rs.248.50 cr. through a QIP issue to acquire Ebix Inc. for $ 361 mn., with investors like Ebisu Global Opportunities Fund participating.
• Three M Paper Boards plans 25% capacity expansion from the current 72,000 TPA.
• Ashiana Ispat producer of Kamdhenu TMT Bars trades at a P/E of just 3x and P/BV of 1x. At Rs. 47, it's a strong buy.
• Shipping Corpn. posted excellent numbers and trades at a P/E of just 10x. As a divestment candidate, it's the cheapest PSU with potential to double.
• 20 Microns with strong numbers and a positive outlook, is the only chemical stock at a P/E of less than 15x, poised to double in a year.
• Panasonic Carbon delivered good quarterly results and as the only listed MNC at such low valuations, it may easily double.
• Khazanchi Jewellers achieved 232.26% PAT growth.
• Inspire Films to launch Freshh Mint YouTube channel with a new web series.
• Krishca Strapping raised Rs.68.04 cr. for expansion.
• Praveg’s consolidated income soars 98%.
• Eco Recycling Q1FY25 income surged to Rs.12.53 cr., up 86.46% YoY.
• Sky Gold achieved a 121.32% PAT growth in Q1FY25.
• Kaushalya Logistics receives an LOI from Adani Cement to expand in West Bengal.
• Power & Instrumentation (Gujarat) announced unaudited Q1FY25 results.
• AVG Logistic posted 105.90% PAT growth in Q1FY25.
• Supreme Power Equipment’s Q1FY25 PAT grew 25.66% to Rs.3.40 cr.
• Kaushalya Logistics secured contracts with Indian Bulls Enterprise and S T P Ltd.
• Baid Finserv posted Rs.19.35 cr. income with a 58.49% EBITDA margin.
• Patel Engineering's Q1FY25 net profit grew 26% YoY.
• ANI Integrated Services Q1FY25 EPS grew 152.17% YoY.
• Power & Instrumentation (Gujarat) posted an 86% YoY net profit growth.
• Kore Digital posted over 1000% YoY revenue growth in Q1FY25.
• Sky Industries Q1FY25 net profit grew 108% YoY.
• Ducon Infratechnologies in a filing to the BSE & NSE reports of 406% surge in Q1FY25 PAT.
• Indraprastha Medical Corporation, part of Apollo Hospitals, trades at a PB ratio of 22x and PEG ratio of 0.66x, well below industry averages. It's undervalued and set for strong re-rating.
• As the Indian economy improves, direct tax collections surged to Rs. 8.13 tn. (Rs. 8,13,000 cr.) from Rs. 96.87 bn. (Rs. 9,687 cr.) between 1st April and 11th August 2024.
• LIC to invest Rs.1,30,000 cr. in equities in FY25. In Q1FY25, it invested Rs. 38,000 cr. up from Rs. 23,300 cr. YoY while premia rose 20% YoY to Rs. 18,431 cr. in July 2024.
• Repco Home Finance posted 18% higher Q1 EPS of Rs.18, which may lead to FY25 EPS of Rs.80. The share is going cheap at a forward P/E of 5.9x.
• Oil India posts 44% higher Q1 NP of Rs.2016 cr. with an EPS of Rs.12.4 on expanded equity after 1:2 bonus, which may lead to FY25 EPS of Rs.60+. It trades at a forward P/E of just 10.5x.
• Muthoot Micro Finance posted 18% higher NP of Rs.113.2 cr. on 34% higher income of Rs.641 cr. fetching an EPS of Rs.30.2 with net NPA of 0.71%.
• Cheviot leader in jute products posted 55% higher Q1 EPS of Rs.44, which may lead to FY25 EPS to Rs.145 from Rs.115.7 in FY24. It trades at a forward P/E of just 9.6x.
• V-Marc posted 156% higher FY24 EPS of Rs. 11.8 on 129% higher sales of Rs. 565 cr., which may lead to FY25 EPS of Rs. 22.
• Cash-rich Shriram Pistons & Rings posted 15% higher Q1 NP of Rs.530 cr. with an EPS of Rs.26, which may lead to FY25 EPS of Rs.120 from Rs.100 in FY24.
• Aurangabad Distillery posted FY24 EPS of Rs.25.5, which may lead to FY25 EPS of Rs.32 indicating strong medium-term prospects.
• IIFL Securities posted 144% NP of Rs.182.2 cr. fetching Q1 EPS of Rs 5.8, which may lead to FY25 EPS of Rs.25+.? It trades at a forward P/E of just 8.3x against industry average 21.7x.
• Natco Pharma posted 60% higher Q1 EPS of Rs.37.3, which may lead to FY25 EPS of Rs.100. It trades at a forward P/E of just 15x as against the industry average P/E of 35.3x.
• Basilic Fly Studio to invest GBP 5 mn. in its wholly-owned subsidiary, Basilic Fly Studio UK Ltd., to support growth, expansion & potential inorganic opportunities.
• Naman I-Store into retail furniture fixtures & industrial sheet metal fabrication signs an MoU to purchase land for Rs. 5.43 cr.
• Styrenix Performance posted 89% higher Q1FY25 EPS of Rs.34.8, which may lead to FY25 EPS of Rs.135+ and announced a major expansion.?
• Nile Ltd. into Pure Lead and Lead Alloys posted 62% higher Q1 EPS of Rs. 29.9, which may lead to FY25 EPS of Rs. 130. Its long-term prospects look strong.
• Veritas (India), a Swan Energy unit, focuses on chemicals & polymers posted 90% higher Q1 EPS of Rs. 18, which may lead to FY25 EPS of Rs. 85, up from Rs. 70 in FY24.
• ICICI Securities posted 94% higher Q1 EPS of Rs.16.3, which may lead to FY25 EPS of Rs.65+ from Rs.52.5 in FY24. It trades at a forward P/E of 13.32x.
• Capacite Infra Projects into design, construction and management services posted 125% higher Q1 EPS of Rs.6.3, which may lead to FY25 EPS of Rs.25 from Rs.16.1 in FY24.
• ITL Industries, specializing in band saw machines & CNC tube mills, posted 27% higher Q1 EPS of Rs.7.1, which may lead to FY25 EPS of Rs.35 from Rs.28 in FY24.
• Coral Laboratories posted 389% higher Q1 EPS of Rs.24.6, which may lead to FY25 EPS of Rs.75. It trades at a forward P/E of 9.5x as against the industry average P/E of 35.3x.
• Paul Merchants into financial services & forex, posted Q1 EPS of Rs. 43.2, which may lead to FY25 EPS of Rs. 180. It trades at a forward P/E of 4.3x and has strong multibagger potential.

This is an extract from Money Times Talk, part of 'Money Times' publication,17th Aug 2024.

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