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 Gossips of the market for the week of 19 March to 23 March 2018.
BUY | HOLD | SELL – What to do?
- The latest grey market premium for the IPO of Bandhan Bank is Rs.16-18.
- Larsen & Toubro has obtained orders worth Rs.2597 crore from the transportation, infrastructure and water treatment sectors.
- Rakesh Jhunjhunwala has bought 3 crore shares of Jaiprakash Associates at Rs.18.30/share. This debt-ridden company seems to have bottomed out. Investors may park limited funds here.
- Unconfirmed reports suggest that I G Petrochemicals may take a big leap as all its divisions are working full throttle and its results for FY18 are expected to be excellent. Buy.
- Maruti Suzuki India plans to overtake M&M in the utility vehicles space. There is no stopping this company. A good buy at any price.
- Kridhan Infra is faring well and its current beaten down share price merits a buy.
- Ishan Dyes & Chemicals, which is into speciality chemicals, is expected to post good numbers for FY18. The stock is stagnant at Rs.47-48 levels. Buy for around 60% appreciation within a year.
- ICICI Securities plans to raise Rs.4000 crore via an OFS and ICICI Bank will be the biggest beneficiary. Buy.
- MMTC intends to issue a bonus, which is sentimentally a positive. The stock may rise further. Buy.
- The government’s decision to extend subsidy to fertilisers till 2020 is a positive for the entire industry. Buy Coromondel International and Rashtriya Chemicals & Fertilizers.
- Strides Shasun has received USFDA approval for its generic Efavirenz tablet used to treat HIV+. A big positive for the company.
- L&T Finance Holdings has raised another Rs.1000 crore through a QIP at a price of Rs.158.60. A good long-term buy.
- Gravita India has obtained an order worth Rs.300 crore from a Singapore-based company. Its Q3 results were also up by around 34%. A good buy. You may like this : Get your investment process back on track in a new financial year
- Morganite Crucible (India), a 75% subsidiary of UK-based Morgan Metal, is evaluating to start trading/ selling Degassing machines to end customers where the parent Morgan’s Degassing Rotor is used. For this purpose, it has signed a Purchase Framework Agreement with Febtech Industries for a period of two years to diversify the product in the domestic as well as overseas market. A good long-term buy.
- With a likely EPS of Rs.40-42 in FY18, Star Paper Mills is the cheapest share in the paper space with a forward P/E of 5.6x. The stock has the potential to touch Rs.340 on a reasonable P/E of 8.5x.
- Buy Rico Auto Industries for decent gains in the medium-term as the on-going capex is likely to be substantially EPS accretive. Analysts project a share price of over Rs.110.
- Vindhya Telelinks is the cheapest share in the infra space. 75% of its revenue is derived from its EPC division. It has ventured into lucrative sewage projects and expects good volumes through this vertical. It is likely to notch a consolidated EPS of Rs.88 in FY18 and Rs.96 in FY19 post expansion. The stock is poised to touch Rs.1500.
- KSE is set to garner an EPS of Rs.220 in FY18 on a small equity capital of Rs.3.2 crore. The stock trades at a forward P/E of 10.6x against the industry average P/E of 40x and it has the potential to double.
- Nandan Denim has posted excellent Q3 results with 57% higher PAT despite the subdued markets. It may post an EPS of Rs.14 in FY18 and Rs.20 in FY19. The stock is poised to touch Rs.200. Its 52-week high is Rs.187.
- Virinchi could notch an EPS of Rs.13 in FY18 and Rs.18 in FY19. It recently diversified into the hospital business and has 550-bed hospitals across three locations in Hyderabad and plans to expand to 700 beds. The stock has the potential to touch Rs.200.
- An Ahmedabad-based analyst recommends Chandni Textiles Engineering Industries, Gufic Biosciences, IOL Chemicals & Pharmaceuticals, Lambodhara Textiles, Sical Logistics, Shilp Gravures and United Bank of India.
- Talbros Automotive Components has won orders worth Rs.35 crore from Dana Spicer India. For Q3FY18, it clocked a 51% higher PAT and is an attractive buy.
- Bharat Heavy Electricals has secured an order worth Rs.736 crore for nuclear steam generators. A good long-term buy.
- Goa Carbon announced that the direction by the Goa State Pollution Control Board to suspend operations stands revoked. A positive for the company. Buy.
- Bank of India has recovered Rs.777 crore worth standby LOC and expects another Rs.2000 crore to be recovered in the next two months. Buy selectively.
- Dilip Buildcon has again emerged as the lowest bidder for a project worth Rs.1004 crore in Madhya Pradesh. Its share price may jump. A good buy. You might like this : Book Review: Brightest Investment Minds
- Yes Bank has recently sold 2.17% stake in Fortis Healthcare. Others may follow suit. Sell.
- Himachal Futuristic Communications is reportedly planning an investment of ~Rs.300 crore to put up an optical fibre manufacturing facility in Telangana. Patient investors may buy for the long-term.
- Bharti Airtel plans to raise Rs.16500 crore via NCDs and Bonds including $1 bn foreign currency bonds to refinance loans and pay for spectrum and raise its market share by ~5%. A big positive.
- Purvankara is contemplating a housing project in Goa at an investment of ~Rs.500 crore, which will boost its profitability. Buy.
- Billionaire Paul Singers Elliot Management Corporation has bought 1.8555 mn ADRs (~0.4% of capital) of Wipro. This may act as a morale booster for the company. Buy.
- PNB Housing Finance is considering a Rs.8000 crore debt issue to fund its expansion programs. A positive for the company.
If you like this blog, then you can read our previous gossip blog here: Click here.
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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.