Tower talk By VR Advisors Date 17 May 2020

TOWER TALK

  1. Everest Industries is witnessing huge buying interest. Its working and performance merits better rating. A good buy at ~Rs.176.
  2. The government has announced a very big impetus to the power sector. REC and Power Finance Corporation can be the major beneficiaries. A big positive. Accumulate.
  3. For Q4FY20, Shree Cement posted a higher PAT of Rs.536 crore on a revenue of Rs.3415 crore. The infrastructure sector is slowly opening up. Accumulate.
  4. VST Tillers Tractors has resumed operations at all its plants. The ensuing monsoons are predicted to be normal. A good opportunity to start adding.
  5. Mahindra Holidays Resorts India is witnessing a big fall in business due to the COVID-19. It would be prudent to sell the share as the business is not likely to rebound for some time.
  6. On the back of increasing demand, Indian Oil Corporation is ramping up its operating level to 80% of the rated capacity. It is also resuming its intermediary petrochemicals manufacture. Accumulate.
  7. Piramal Enterprises posted a lower PAT of Rs.74.59 crore for Q4FY20. Revenues too presented a poor picture. It would be prudent to sell.
  8. For Q4FY20, Subex witnessed a two-fold jump in PAT of Rs.31.99 crore on a mere 5% rise in revenue. A big positive. Accumulate.
  9. Abbott India receives FDA emergency use authorization for the COVID-19 antibody blood test on the Alinity-I system. It plans to ship 30 million blood samples globally (at 50% capacity). This could be a big impetus to the Indian arm. Add.
  10. Bharti Airtel to claim GST refund of Rs.923 crore for the period July-September of 2017. This would be a big morale booster and help its liquidity. Add.
  11. For Q4FY20, NIIT Technologies posted 11% higher PAT of Rs.102 crore, which is 20% higher YoY and a dividend of Rs.11/ share has been declared. In a scary market, this is a good share to add.
  12. For Q4FY20, Astec LifeScience posted a 145% higher PAT of Rs.31.17 crore. The stock has withstood the prevailing uncertainty in the market. Retain and add.
  13. Ajanta Pharma is likely to post higher profits in the next few quarters. Its Ayurvedic brands are faring well and are boosted by the COVID-19 crises. Add.
  14. To restore confidence in the housing market, the government promises big investments to improve the liquidity of housing finance companies. Reliance Home Finance can be considered a good contrarian call. Buy.
  15. Amansa Holdings acquires 21,11,780 shares of Cyient at Rs.205/share-. A big positive for the company. Investors with an appetite for risk may enter with a strict stop loss.
  16. ICICI Bank reported a 20% growth in its standalone profits for Q4FY20 but missed targets set by analyst. Its long-term prospects are positive as higher provisioning on account of COVID-19 is unlikely to be repeated. Add at declines.
  17. Carlyle group is likely to acquire a ~74% stake in Sequent Scientific. This will trigger an open offer. A positive for the company. Buy.
  18. TV Today Network, which has maintained its leadership with India Today and Aaj Tak in the Hindi news segment. It posted a 17% higher PAT in Q4FY20 and an EPS of Rs 23.4 for FY20. A good share to accumulate for ~40% returns.
  19. Jindal Poly Films is expected to notch an EPS of Rs.80-85 in FY20. The share is the cheapest in the packaging space. Buy for ~40% appreciation in the medium term.
  20. A sugar analyst strongly recommends Avadh Sugar Energy and Magadh Sugar Energy, both of which have fared well in 9MFY20. For FY20, Avadh is expected to post an EPS of Rs.55+ and Magadh Rs.42. Buy for ~30% returns.
  21. Mahanagar Gas is currently the sole authorised distributor of CNG and PNG in Mumbai and adjoining areas. Its planned Capex in Pen, Uran and Karjat areas along with steady growth in Mumbai provides strong visibility of volume growth in the medium to long term. Buy for ~20% appreciation.
  22. With an EPS of Rs.27 for 9MFY20, Rajratan Global Wire is expected to register an EPS of Rs.36. The share is expected to fetch decent appreciation of ~30% in the medium term. Buy.
  23. Murugappa group sugar major, EID-Parry (India), with 43, 400 TCD and 160 MW of power and distillery is on courseto notch an EPS Rs.25. The share expected to cross the Rs.200 mark. Accumulate.
  24. For 9MFY20, Vindhya Telelinks posted an EPS of Rs.168. With a sizable stake in Birla Corporation and Universal Cables, it may notch a consolidated EPS of Rs.210-220 in FY20 on a small equity of Rs.11.8 crore. It trades at a forward P/E of 2.6x. Accumulate.
  25. Bhageria Industries, which is into dyes and chemicals, is all set to post an EPS of Rs.15 in FY20. Accumulate for medium term gains.
  26. Hinduja Global Solutions posted a 106% higher PAT in Q3FY20. Going by its Q3 and 9MFY20 results, it is likely to notch an EPS of Rs.100+ for FY20. Accumulate.

Disclaimer : Stock Market Investment Is Subject To Market Risk Please Consult Your Financial Advisor Before Investing

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