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 of 9 April to 15 April, 2018.
BUY | HOLD | SELL – What to do?
- Opto Circuits, manufacturer of medical equipments and stents, has turned around and is on a comeback trail. A good buy at the current level.
- Escorts Ltd is on a big expansion drive. It’s beaten down share price merits a buy.
- Kwality Ltd, which recently made a QIP at around Rs.116, has fallen steeply. At half the price, the stock is a value buy.
- The rumour of Chanda Kochhar’s involvement in the loan scandal concerning the Videocon group has sparked a big sell off in ICICI Bank. Investors willing to take a small risk may buy it the current beaten down price.
- Meghmani Organics is expected to notch an EPS of Rs.7.5 in FY18 and Rs.10 in FY19 post expansion. A reasonable P/E of 17.5x (industry P/E 33x) will take its share price to Rs.130 in the medium-term and Rs.175 thereafter.
- National Aluminium Company (NALCO), the lowest cost producer of aluminium in the world, is raising its selling price. This PSU stock is worth accumulating for decent gains.
- Indiabulls Housing Finance managed to withstand the market volatility to a great extent. Its inherent strength makes this stock a good buy.
- Akzo Nobel India is planning a buyback. The stock can deliverreasonable returns in the short-term. Buy.
- Suven Life Sciences has received a product patent from the Canadian authorities for the treatment of neurodegenerative diseases. Its patents are valid till 2033. Buy.
- Eicher Motors plans to spend Rs.800 crore on construction of its second plant at Chennai to make the Royal Enfield motorcycle. It also intends to set up plants in Thailand this year. A good buy.
- Dilip Buildcon has obtained orders worth over Rs.2000 crore recently. Analysts predict another 20% rise in its share price in the next 3 months. Aggressive investors may enter.
- L&T Hydrocarbons Engg, Larsen & Toubro’s subsidiary, has obtained construction orders worth Rs.3376 crore from Saudi Aramco. Its Q3 profits were also higher by around 48%. One of the best bets in the market today.
- Lupin has received Establishment License for its Pithampur Unit. One more feather in its cap. Buy for the long-term.
- Arvind plans to make around 40% garments in-house as against 10% currently. Its plan to expand its textile business to Rs.10000 crore over the next 5 years is a distinct possibility. Buy for the long-term.
- Falling rubber prices and strong outlook for the global agri equipment market is driving the share price of Balkrishna Industries. The stock seems to be entering the bull phase. Buy.
- Motherson Sumi System’s acquisition of Rydel, a supplier of interior parts, will add value to its share. There is ample room for appreciation. Buy.
- Dhanuka Agritech is likely to report robust results for Q4. The stock may cross Rs.725 in about 3 months. A good buy.
- The recent sharp correction in Can Fin Homes offers a good buying opportunity. There are talks that Canara Bank may soon revive its plan to sell a big stake in the company. Buy.
- DCB Bank is being recommended by analysts in anticipation of a big rebound in profitability.
- In an attempt to revive its business, Punjab National Bank has revamped its credit approval process and there are signs of improvement. It’s beaten down share price merits a buy.
- Ballarpur Industries plans to sell all the assets of its Malaysian unit – Sabah Forest Industries. A positive for the company. You may like this: Experts’ Advice For The Week Of 5 Feb To 9 Mar, 2018
- Nandan Denim is on course to notch an EPS of Rs.14 in FY18 and Rs.18 in FY19. It has expanded its capacity from 99 MMPA to 141 MMPA thereby making it the largest denim manufacturer in India and the 4th largest in the world. The stock may cross Rs.180.
- Virinchi is expected to notch an EPS of Rs.13 in FY18 and Rs.18 in FY19. It has recently diversified into the hospitals business. It plans to expand its 550-bed hospital to 700 beds. The stock has the potential to touch Rs.200.
- Centrum Capital (CCL) has sold its forex business that contributed ~50% to its revenues to Ebix for Rs.1200 crore, which is nearly 50% of its market cap. It plans to use the proceeds to expand its wealth management, insurance, business loans and housing finance businesses. If Jaspal Bindra’s is to be believed i.e., CCL could be the next Motilal Oswal in the making. Buy for the long-term.
- Gujarat Mineral Development Corporation (GMDC) is expected to notch an EPS of Rs.14-15 (FV: Rs.2) in FY18 based on its 9MFY18 results. The stock is poised to touch Rs.200.
- Muthoot Finance plans to sell Rs.3000 crore worth of debt instruments to fund its expansion plans. Accumulate in small quantities.
- Britannia Industries has again hit a new high of Rs.5188. Bombay Burmah Trading Corporation (BBTC), its holding company, is a screaming buy.
- Hinduja Global Solutions is expected to notch an EPS of Rs.95-100 based on its 9MFY18 results. A conservative P/E of 12.5x will take its share price to Rs.1187-1250.
- With normal monsoon forecasts, the Pump sector could see a good rally in the coming days. Roto Pumps looks quite attractive at the current level. You may like this: Book Review : Brightest Investment Minds
- An Ahmedabad-based analyst recommends Dhoot Industrial Finance, India Tourism Development Corporation, Gujarat Themis Biosyn, Sahyadri Industries, Super Crop Safe and Vadilal Industries. From his last week’s recommendations, ABC India shot up from Rs.123.5 to Rs.149; Gujarat Themis Biosyn shot up from Rs.41.70 to Rs.45.70; Kamadgiri Fashion shot up from Rs.114.4 to Rs.125; and Pix Transmissions shot up from Rs.121.65 to Rs.142 in just 1 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.