Unique Bull Market Strategies:

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.

Strategy in Bull Market: As per market veteran investors often chase rising stocks in a bull market without considering when to sell weaker ones. It's crucial to clean up portfolios by offloading fragile stocks that may crash when the market turns, rather than just focusing on buying the next big thing.

As per market veteran, while investing in SME stocks with good businesses and valuations is fine, 97% are manipulated and lack investment quality. Avoid the lure for quick gains and focus on long-term sustainable returns. Many SMEs have absurd valuations and poor cash flow, often promoted on social media with misleading motives. Stay cautious and invest in stocks with solid history and intrinsic value.

As per market veteran, history repeats due to human nature's weakness, especially greed. Over-trading is a common downfall, costing millions. To succeed, develop better market understanding and trade with strict discipline to rank among the top 0.01% of traders.

Love cricket but have difficulty in understanding investment? Just as Rahul Dravid faced 70% dot balls yet remained a legend, investments like gold and mutual funds often stay flat but deliver returns in cycles. The key is to stay patient during the quiet periods and capitalize on the 30% that bring gains. Understanding this is essential to creating wealth.

Investors often seek new stocks every day, every week or every month, but as per market veteran, true wealth creation comes from focusing on and accumulating a few high-potential stocks.

As per market veteran, trading is crucial for creating capital, while investing is key to growing it. To accelerate wealth, trade to build capital and reinvest profits in growth stocks. Essential technical knowledge and disciplined trading are necessary for success.

• China's move to refinance $5.4 trillion in mortgages is likely to benefit the metals sector.
• As per astrology view some important turning dates are 2, 6, 12 & 18th September 2024.
• In 4th November MTTs, Cosmic CRF given at Rs.263 touched Rs.2210 - a gain of 740%.
• In 25th November MTTs, Bondada Engineering given at Rs.444 touched Rs.3769 during the week - a gain of 749%.
• In 23rd December MTTs, Electrosteel was given at Rs.113 hit Rs.226 during the week - a gain of 100%.
• In 21st January MTTs, HFCL was given at Rs.88 hit Rs.152 during the week - a gain of 73% & still looks good.
• In 16th March MTTs, Ecoplast given at Rs.321 touched Rs.640 during the week, a gain of 99%.
• In 29th March MTTs, TBZ given at Rs.104 touched Rs.213, a superb gain of 105%, now it is better to book profit in TBZ.
• In 6th April MTTs, Jubialnt Pharmova given at Rs.644 touched to Rs.951, Pee Cee Cosma given at Rs.415 touched Rs.619 during the week.
• In 4th April MTTs, HFCL given at Rs.101 touched Rs.152 & still look good.
• In 25th May MTTs, Morepen Lab given at Rs.49 touched Rs.86, Panasonic Carbon given at Rs.517 touched Rs.677 during the week.
• In 1st June MTTs, Anantraj given at Rs.385 touched Rs.636, a gain of 65%, Bharat Seats given at Rs.152 touched Rs.240, a gain of 58%, SNL Bearings given at Rs.365 touched Rs.417 during the week.
• In 8th June MTTs, Bal Pharma given at Rs.115 touched Rs.158, now it is better to book profit fully in Bal Pharma.
• In 15th June MTTs, ABM Knowledge given at Rs.133 touched Rs.171, Anantraj given at Rs.424 touched Rs.636, Metro Global was given at Rs.143 touched Rs.168 & still look good, HFCL given at Rs.118 touched Rs.152 & still look good.? Morepen Lab given at Rs.56 touched Rs.86 during the week.
• In 22nd June MTTs, Cybertech given at Rs.160 touched Rs.264 - a gain of 65%, now it is better to book profit in Cybertech. Kopran given at Rs.253 touched Rs.326, Vipul Orgaanic given at Rs.181 touched Rs.268, Rupa & Company given at Rs.279 touched Rs.362 - a gain of 30%.
• In 29TH June MTTs, BL Kashyap & Sons given at Rs.90 touched Rs.120, TBZ given at Rs.121 touched Rs.213 a gain of 76%, VLS Finance given at Rs.293 touched Rs.387 during the week.
• In 6th July MTTs, BPCL given at Rs.306 touched Rs.365, HFCL given at Rs.130 touched Rs.152 & still look good, Morepen Lab given at Rs.59 touched Rs.86, Pee Cee Cosma given at Rs.446 touched Rs.619 during the week.
• In 13th July MTTs, Deep Ind., given at Rs.318 touched Rs.396, Godavari Drugs given at Rs.103 touched Rs.155 a gain of 50%, Kitex Garments given at Rs.216 touched Rs.392, a superb gain of 81%, now it is better to book profit in Kitex. Super Crop Safe given at Rs.12.60 touched Rs.19.44 - a gain of 54%. Now it is better to book profit in Super Crop Safe.
• In 20th July MTTs, Bharat Seats given at Rs.163 touched Rs.240, Morepen Lab given at Rs.54 touched Rs.86.
• In 27th July MTTs, HFCL given at Rs.123 touched Rs.152 & still looks good, Morepen Lab given at Rs.58 touched Rs.86, Vipul Organics given at Rs.177 touched Rs.268 during the week.
• In 3rd August MTTs, HFCL given at Rs.133 touched Rs.152, Himadri Speciality Chemical given at Rs.467 touched Rs.539 during the week.
• In 10th August MTTs, HFCL given at Rs.132 touched Rs.152 & still look good, TBZ given at Rs.163 touched Rs.213 during the week.
• In 17th August MTTs, ABM Knowledge given at Rs.141 touched Rs171., Anantraj given at Rs.586 touched Rs.636, EKC given at Rs.169 touched Rs.200, Graueir Weil given at Rs.93.52 touched Rs.112, HFCL given at Rs.132 touched Rs.152, Indo Amines given at Rs.161.45 touched Rs.183, PG Foils given at Rs.200 touched Rs.232, Prakash Ind., given at Rs.186 touched Rs.237, Morepen Lab given at Rs.61 touched Rs.86, Nahar Industrial Enter., given at Rs.151.45 touched Rs.168 during the week.
• In last week MTTs 24th August Anantraj given at Rs.586 touched Rs.636, Capacite Infra given at Rs.384 touched Rs.405, GIPCL given at Rs.221 touched Rs.249, Himadri Speciality given at Rs.527 touched Rs.539, ITD Cementation given at Rs.548 touched Rs.575, Morepen Lab given at Rs.80 touched Rs.86, Prakash Ind., given at Rs.208 touched Rs.237, Riddhi Corporate Services given at Rs.80 touched Rs.89 during the week.
• Continental Petroleums posted 291% higher Q1FY25 PAT of Rs.1.29 cr. on its small equity of Rs.2.78 cr. & big reserve of 22.61 cr. Key HNIs hold 7.36%. With a strong ROCE of 16.5% and significant undervaluation, stock is likely to surpass its 52-week high of Rs.114.
• Indo Borax Chemicals posted 35% higher Q1FY25 PAT of Rs.14 cr. on its small equity of Rs.3.21 cr. & huge reserve of Rs.290 cr. With a 100% dividend for FY24 and HNIs hold 3.79%, the stock may surpass its 52-week high of Rs.237.
• Debt-free Multibase, with reserves of Rs.122 cr. and equity of Rs.12.62 cr., posted 61% higher Q1FY25 NP to Rs.3.92 cr. Multibase SA holds 75% and HNI Dipak Kanhaiyalal holds 1.19%. The stock may surpass its 52-week high of Rs.337.
• As per market grapevine Artefact Projects, Chennai Ferrous Industries, Continental Petroleums, HCC, HFCL, Indo Borax, LXCHEM, Mafatlal Ind., Mangalam Drugs Organics, MNC Mulibase India, Prakash Ind., Shilp Gravures may potentially surpass its 52-week high.
• Mangalam Drugs & Organics receives a USD 274,800 grant from The Medicines for Malaria Venture (MMV) for Pyronaridine R&D. With equity of Rs.16 cr. & reserves of Rs.120 cr., it posted higher Q1FY25 NP of Rs.2.68 cr. making it a strong buy. HNIs holds 13.34% stake in it.
• Vinyoflex posted 31% higher Q1FY25 PAT fetching an EPS of Rs.1.67. With equity of Rs.4.32 cr. & reserves of Rs.26 cr., its PE/PB ratios of 10.6x & 1.30x are strong. At Rs.91, it’s a solid pick compared to its 52-week high of Rs.143.
• Artefact Projects bags new orders and cuts debts. With equity of Rs.7.28 cr. & reserves of Rs.52.22 cr., it posted 555% higher NP to Rs.1.44 cr. It trades at a PE of 10x & PB of 0.90x. Stock has potential to surpass its 52-week high.
• With disruptions in Bangladesh, Mafatlal Industries, trading at Rs.177, is a strong pick compared to its 52-week high of Rs.221.
• Laxmi Organic Industries to expand to a 30,000 sq. ft. campus & Rs.5,500 mn. facility in Lote Parshuram. This will nearly double revenues and triple its EBITDA by FY28, signaling strong growth prospects.
• Sumedha Fiscal, a cash-rich co. with a PE of just 6x and FY24 EPS of Rs.9.58 trades at a P/B of 0.88x and regularly pays dividends. It is a strong candidate for re-rating.
• ABC India quotes at a low PE of 9.4x and MCap/Sales ratio of 0.3x. It posted Q1FY25 EPS of Rs.13.66. Promoters hold 65% & HNIs holds 7.62%, Stock shows a breakout potential.
• Available Finance posts Q1FY25 EPS of Rs.34.75, up from Rs.21.33 YoY. It trades at a low P/E of 1.9x & P/B of 0.3x & boasts reserves of Rs.932 cr. against Mcap of Rs.270 cr. It holds 32% stake in Aggarwal Coal and is well-positioned to surpass its 52-week high of Rs. 341.
• Steel City Securities quotes at a low P/E of 12x and offers a 3% dividend yield. With 97% profit rise in Q1FY25 and a 7.27% rise in promoter stake, the stock is well-positioned for growth.
• Denis Chem, a niche debt-free firm specializing in intravenous injectables, posted FY24 EPS of Rs 8.04 up from Rs 5.66. With a M.Cap/Sales ratio of just 0.55x it offers Rs 2.5 dividend. Major stakes are held by two HNIs (23%) and FIIs (20.74%).
• Vaishali Pharma plans a 1:1 bonus and a 1:5 stock split. For Q1FY25, its sales jumped 34.7% YoY to Rs. 18.08 cr., while NP rose 7.1% YoY to Rs. 1.70 cr.
• Mach Conferences & Events IPO opens on 3rd Sept 2024 to raise Rs.125.8 cr. For FY24, it posted revenue of Rs. 237.26 cr., EBITDA of Rs. 34.54 cr. and PAT of Rs. 26.18 cr.
• Sky Industries to showcase its latest sports fastening solutions at the 12th India International Sporting Goods Show and strengthen its market presence and forge new partnerships.
• Dhruv Consultancy secures Rs.4.74 cr. NHAI contract for Independent Engineer Services on the Aligarh-Palwal Highway, enhancing its project portfolio.
• Shera Group expands its Winding Wires and Strips production capacity to 41,130 TPA and meet the growing market demand.
• Shri Keshav Cements & Infra receives a strategic investment from Team India Managers Ltd., raising equity to Rs.17.51 cr., signaling confidence in its growth.
• Patel Engineering and RVNL sign an MOU to collaborate on hydro and infrastructure projects, leveraging combined expertise for excellence.
• Slone Infosystems secures Rs.17.43 cr. contract to supply materials for advanced ICT Labs featuring AI, drones and robotics.
• AVP Infracon wins sub-contracts worth Rs.23.6 cr. for the Bagalur Bypass and Rs.47.2 cr. for the Kallakurichi-Tiruvannamalai Road projects.
• Kaushalya Logistics began logistics services for IP Softcom Pvt. Ltd., a subsidiary of IPSCOM Pte Ltd., Singapore.
• Joindre Capital's revenue doubled last quarter, with a quarterly EPS of Rs.2 and a 3% dividend yield. Stock trades at Rs.62 with a P/E of just 10x. Stock appears undervalued.
• With FSSAI withdrawing the A1/A2 milk label directive, keep an eye on listed milk processors, especially Heritage Foods.
• The Competition Commission’s approval to merge Disney with Reliance’s TV18 puts Network18 in focus. Buy on dips.
• NVIDIA’s strong performance signals potential for domestic semiconductor stocks like Moschip Technologies tied to Taiwan Semiconductor.
• Tata Group stocks have joined the rally; Tata Investment, Tata Elxsi and TRF are worth monitoring.
• A leading brokerage issued a sell report on Mazagon Dock Shipbuilders, forecasting a 77% downside. Any drop near Rs.4000 could be a good entry point.
• Parag Milk Foods trading at a PE ratio of 23.61x v/s the industry average of 41.14x, is poised for potential long-term gains of over 75%.
• Unicommerce Solutions posted 31% higher Q1 NP of Rs. 3.51 cr. Revenue grew 9% YoY to Rs. 27.5 cr. and EBITDA surged 60% YoY to Rs. 4.18 cr. EBITDA margins rose 15.22% from 10.42% YoY.
• FIIs Ebisu Global Opportunities Fund and Minerva Ventures Fund have acquired a stake in Rama Steel Tubes Ltd., which recently entered the defense sector.
• MIC Electronics wins a Northern Railway contract for an Integrated Passenger Information System. It posted 32% YoY rise in Q1 EBITDA and 59% YoY growth in PAT
• GRM Overseas acquires a 44% stake in Virat Kohli-backed ‘Rage Coffee’ advancing its position in the Indian coffee market.
• Nandan Denim to leverage the expanding Indian textile industry with exports projected to hit $65 bn. by FY26 and the domestic market growing to $350 bn. by 2030
• Remedium Lifecare to acquire a significant stake in UAE-based AirOWater Global Trading LLC and is considering issuing FCCBs
• Apollo Micro Systems won order worth Rs. 10.90 cr. from Bharat Dynamics Ltd. and declared L1 for a Controllerate of Naval Armament order, highlighting the defense sector's prominence
• SBC Exports wins Rs,47.38 cr. order from the Directorate of Vocational Education & Training and a repeat export order worth Rs.45 cr., reflecting strong growth in textile exports.
• Muthoot Microfin's new branch in Chodavaram expands its reach to 20 states, serving 3.4 mn. customers and empowering low-income homes and women-owned businesses.
• Natco Pharma's Q1 EPS rose 60% to Rs.37.3, which may lead to FY25 EPS of Rs.100. Promoters hold 50%, FPIs 17.5%, MFs 2.7% and DIs 3.7%, with reported interest from HNIs.
• Rashi Peripherals, a key ICT distribution partner in India, posted Q1 EPS of Rs.8.4, which may lead to FY25 EPS of Rs.32. Stock trades at a forward P/E of 13.4x.
• V-Marc into specialty wires & cables, launches 2 new electrical products: 'Flexi-Tough eB-HFFR' wire & 'eB+ power cables' with advanced E-Beam technology both well-received in the market.
• ROX Hi-Tech invests Rs.50 cr. from its IPO to set up a Network & Security Operations Centre and a Medical Automation Centre in Chennai and a Global Software Delivery Center in Noida.
• IST Ltd., a manufacturer of auto components & precision parts, posts 43% higher Q1 EPS of Rs. 45.2 on its small equity of Rs. 5.8 cr., which may lead to FY25 EPS of Rs. 160.
• Kiri Industries invests Rs.2,450 cr. in a two-phase project to produce 2 lakh tonnes of copper and 5 lakh tonnes of DAP/NPK annually. It hopes to receive $603.8 mn from sale of DyStar.
• International Conveyors manufacturer of fire-retardant anti-static conveyor belting, posts 127% higher Q1 EPS of Rs. 5, which may lead to FY25 EPS of Rs. 15 at a forward P/E of just 5.6x.
• BPCL to invest Rs. 1.7 trillion in 5 years to expand oil refining, fuel marketing, petrochemicals & green energy. Strong long-term outlook.
• J & K Bank posted 26% higher Q1 EPS of Rs.3.8, which may lead to FY25 EPS of Rs.21 on its equity of Rs.110 cr. It trades at a forward P/E of just 5.2x v/s the industry average P/E of 16.6x.
• Federal-Mogul Goetze (India) posted 19% higher EPS of Rs.6.4, which may lead to FY25 EPS of Rs.30+. It trades at a forward P/E of 15.1x as against the industry average P/E of 42.1x.
• DCB Bank posted 15% higher FY24 EPS of Rs.17.1, which may lead to FY25 EPS of Rs. 20+. It trades at a forward P/E of just 5.8x as against the average P/E of 16.6x.
• Golkunda Diamonds posts 710% higher Q1 EPS of Rs.5, which may lead to FY25 EPS of Rs.22. It trades at a forward P/E of just 9.1x as against the industry average P/E of 75x.
• Sandesh Ltd., an Ahmedabad-based Gujarati daily, posted 53% higher Q1 EPS of Rs.66.7, which may lead to FY25 EPS of Rs.300 on its equity of Rs 7.6 cr. It trades at a P/E of just 5.5x with a BV of Rs 1795.
• Vibrant Global posts 103% higher Q1 EPS of Rs.6.1, which may lead to FY25 EPS of Rs.25. It trades at a forward P/E of just 3.2x against the industry average P/E of 22.6x.
• GAIL (Gas Authority of India) posts 78% higher Q1 EPS of Rs.4.8. which may lead to FY25 EPS of Rs.24. Medium-to-short-term prospects appears bright.
• Mafatlal Industries posted FY24 EPS of Rs. 14.2, which may lead to FY25 EPS of Rs.18+. Promoters hold 70% equity. It holds 15.16% of Nocil for a total market value of Rs.730 cr.
• Godawari Power & Ispat, an integrated steel plant with captive power posts 32% higher Q1 EPS of Rs.21, which may lead to FY25 EPS of Rs.86. It trades at a forward P/E of 11x as against the industry average P/E of 30x.
• Jindal SAW posts 67% higher Q1 EPS of Rs.13.8, which may lead to FY25 EPS of Rs.65. It trades at a forward P/E of just 9.8x against the industry average P/E of 30x.
• Manappuram Finance posted 46% higher FY24 EPS of Rs.26, which may lead to FY25 EPS of Rs.30+. Stock trades at a P/E of 7.1x.
• Coral Labs posted 389% higher Q1 EPS of Rs.24.6, which may lead to FY25 EPS of Rs.75. It trades at P/E of 12x as against the industry average P/E of 35.3x. Medium-to-long-term prospects are bright.
• Capacite Infra Projects into project design and construction for real estate and govt. clients posted 125% higher Q1 EPS of Rs.6.3, which may lead to FY25 EPS of Rs.25 from Rs.16.1 in FY24.
• IIFL Securities posted 144% higher NP of Rs.182.2 cr. with Q1 EPS of Rs 5.8, which may lead to FY25 EPS to Rs.25+ from Rs.16.7 in FY24.? Stock trades at a P/E of 8.3x against the industry P/E of 21.7x.
• Aurangabad Distillery will issue bonus shares on 2nd Sept 2024 and unveil capex plans. It produces spirits & potash near Pune posted FY24 EPS of Rs.25.5, which may lead to FY25 EPS of Rs.32.
• Natco Pharma has filed a substantially-complete ANDA for a generic TABRECTA, expecting 180 days of sole marketing exclusivity. TABRECTA recorded $ 126 mn. in U.S. sales for 2023, highlighting strong market potential.
• Recently listed Trom Industries into solar solutions and is trading at low valuations. The IPO proceeds will fund a new solar power plant, potentially driving strong returns.
• Government-owned MTNL, with Mcap of Rs. 3,800 cr., has received cash infusions for bond payments. Ongoing 4G/5G projects and a potential merger with BSNL could boost returns.
• Jay Kailash Namkeen, a microcap in packaged snacks with 186 SKUs, is attractively valued and poised for growth.
• Microcap Globesecure Technologies has appointed industry veterans and secured a Rs. 75 lakh order from Kotak Mahindra Life Insurance signaling potential gains.
• Rudra Global Infra Products, a microcap in TMT bar manufacturing is expanding production and investing Rs. 190 cr. in a solar project and aims for a turnover of Rs. 1,000 cr.
• Aartech Solonics, a microcap in electrical machinery, is reporting turnaround results & has announced a 1:2 bonus & 1:1 stock split, showing strong potential in the power & defense sectors.

This is an extract from Money Times Talk, 30 August 2024, given for education purpose only.

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