In this particular segment, I write the blog on market gossips for the week. Generally, I pick those stocks which are buzzing in the market for some news, orders, the result published, or for any other reason. So, here is the quick list of Stock Market Gossips for the week 16th, 2018.
BUY | HOLD | SELL – What to do?
- With crude prices maintaining above $70 per barrel mark for the whole week, exploration companies could see good buying in the coming weeks. Deep Industries, which has performed good even in bad times (FY17EPS: Rs.25) and consistently paid dividends over the years looks ripe for a 50% upmove.
- With Road Minister now aiming for 40 km a day for building highways, MEP Infrastructure Developers, the giant in developing highways is a good bet in the coming years.
- Om Metals Infraprojects has good orders in its kitty and is also looking to monetise its landbank. The stock trades near its 52-week’s low and can be bought for a good 50% appreciation in the short-term.
- Kakatiya Cement Sugar & Industries will be the largest beneficiary on development of the Telangana region. It has a near monopoly in the region. Investors with 2 year perspective can look to double returns from the current levels.
- Ceat, Harrison Malyalam, Zensar, CESC are all firing on all cylinders. Stel Holdings, which is the holding company of these stocks, should flare up further.
- State Trading Corporation Of India (STC) has turned profitable this year and with MMTC’s and STC’s merger on the cards, STC will benefit immensely since it is Rs.10 paid up (F.V.) and MMTC being Re.1 paid up. The share of STC could double from current levels.
- Sonata Software is reportedly doing well and can be a steady compounder for the next 4-5 years. Small-Cap MFs, too, have shown interest in the stock with HDFC Small-Cap Fund buying the stock recently.
- Kwality is expected to notch an EPS of Rs.5.8 in FY18 and Rs.9 in FY19 post capex. The stock may cross Rs.80 in the medium-term. You may like this: Experts’ Advice For The Week Of 5 Feb To 9 Mar, 2018
- KSE, formerly known as Kerala Solvents, is set to notch an EPS of Rs.220 in FY18. It is a strong bonus candidate as well. The stock trades at a forward P/E of 15.20x against the industry P/E of 52.43x. It has the potential to double in the medium-term.
- Just Dial is expected to post 35-40% higher PAT in FY18. The stock may touch Rs.550 soon on FY18E EPS of Rs.22-24.
- Securities & Intelligent Services (India) (SIS) is expected to report excellent numbers for Q4FY18. This counter has witnessed constant buying by some HNIs and discerning investors. The stock may touch Rs.1500 in the medium term.
- Cox & Kings as part of value unlocking has approved the demerger of the highly profitable Foreign Exchange division (which falls under Leisure – India). CKL’s International business has stabilized after geopolitical volatility last year. Dubai continues to grow rapidly and recovery in the UK business has started after Brexit. CKL is expected to post an EPS of Rs.23/25 in FY18 and Rs.28/30 in FY19. The share has all the potential to cross the Rs.300 mark.
- Veterinary major, Hester Biosciences, shows rising volumes. The share seems poised for higher levels. Buy.
- Goa Carbon posted an excellent Q3 despite its plants shut for 37 days for scheduled maintenance. Also, the Company paid about Rs.4.45 crore for the earlier period and about Rs.3 crore foreign exchange loss this quarter. Grab this share.
- Gravita India announced commencement of commercial production of PPCP Granules from its plant at Chittoor, Andhra Pradesh. A positive for the company.
- The RBI has allowed Future Supply Chain Solutions (one of the largest third-party logistics service providers in India), to raise FPI limit in the company to 49% from 24%.
- Datamatics Global Services has acquired a stake in RJ Globus Solutions, a voice-based BPO company through its step down subsidiary. The Q3 results were also good. Investment is recommended in this Company.
- Laurus Labs off late reports unusually high volumes. Something seems to be cooking. Risk bearing investors may enter.
- Financial Analysts are bullish on Finolex Cables on the back of rising sales, higher EBITDA over the next two years. A good long-term buy.
- At a time when the authorities are bent upon regulating use of plastic bags, it may be prudent to invest in some good paper companies. Buy NR Agarwal Industries and J K Paper for decent gains.
- NMDC is witnessing high demand and rising volumes for its iron ore. The Company is the lowest cost producer in the world and pays a hefty dividend. Buy.
- Dewan Housing Finance has raised 1000 crore via rupee dominated bonds to fund expansion, which signals a revival in the housing finance sector BUY.
- Tata Chemicals is set to buy Allied Silica for Rs.123 crore on a slump sale basis. Positive for the company.
- The Meterology department has forecast a normal monsoon. It would be prudent to add GSFC and GNFC fertilizer share.
- Cineline India is on the prowl again. With big ticket releases scheduled shortly and income from advertisements and rentals from malls, the earnings are set to rise. The share can rise by around 25% in 3 months. Buy.
- Ishan Dyes Chemicals is planning a rights issue to fund expansion. At the CMP of Rs.46.70, this is a good share to buy.
- Mercedes Benz plans to roll out electric vehicles in the next few years. Its engines in India are made by Force Motors. Buy. You may like this: Book Review : Brightest Investment Minds
- Godrej Agrovet, which is struggling at around a price of Rs.700 is witnessing rising volumes and profitability. A good buy for a about 20% gains in the next few months.
- Indiabulls Ventures is being continuously bought by knowledgeable investors on hopes of further investment by FIIs. The share refuses to go down in the down cycles. Risk bearing investors may buy.
- The battle to acquire Fortis Healthcare has intensified with the Munjals of Hero group and Burmans of Dabur have jumped in the fray. Small investors may stand to gain. A good short-term buying opportunity.
- A big positive surprise awaits investors in I G Petrochemicals. The benefits of mergers and expansion will start accruing soon. A good share to add.
- All the bad news in Punjab National Bank has been factored in the current price. At the current beaten down rates, this share must be added with a horizon of two years for decent gains.
- An Ahmedabad based analyst recommends Archies, Diamines & Chemicals, Future Market Networks, IOL Chemicals & Pharmaceuticals, Nelcast & Super Crop Safe. From his last week’s recommendation Dhoot Industrial Finance shot up to Rs.69.95 from 62.20, India Tourism Development Corporation shot up to Rs.502.40 from Rs.456.90, Gujarat Themis Biosyn shot up to Rs.52 from Rs.43.60, Sahyadri Industries shot up to Rs.324 from Rs.272.35. ABC India appreciated 43% from Rs.123.50 on 02-04-18 to Rs.177; Gujarat Themis Biosyns appreciated 24% from Rs.41.70 on 02-04-18 to Rs.52; Pix Transmissions appreciated by 19% from Rs.121.65 on 02-04-18 to Rs.145.05; IOL Chemicals Pharmaceuticals appreciated 14% from Rs.84.20 on 19-03-18 to Rs.95.95; Bajaj Steel Industries appreciated 9% from Rs.201.05 on 12-03-18 to Rs.219.55 and Mangalore Chemicals & Fertilizers appreciated 6% from Rs.61.15 on 02-04-18 to Rs.65 during the week.
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My descriptions, videos, presentations are only for educational and information purposes and under no circumstances should be used for making investment decisions. I cannot guarantee the accuracy of any information provided.
The stocks picks are based on my own research and personal views and sometimes are from newspapers, tv channel program, magazines, etc. In addition, No part of compensation is or will be directly or indirectly related to the views and recommendations of this research. I have not served as an officer director or employee of the company and have not been engaged in the market – making the activity of the company covered in the research report. Hence Consult qualified financial advisor before making any investment decision.