Tower talk By VR Advisors Date 31 May 2020

TOWER TALK

  1. A banking icon with global exposure is rumored to takeover as our next Finance Minister!
  2. Multiplex chain PVR has planned a Rs.300 crore rights issue. Warburg Pincus and Multiples Alternate Asset Management are likely to participate. Buy.
  3. Bata India, which announced a dividend of Rs.4/ share for FY20, has reported a 57% lower PAT for Q4FY20. Exit for the time being.
  4. Despite the coronavirus lockdown, Trent posted a 27% higher consolidated PAT for Q4FY20. Its long-term prospects look bright. Accumulate.
  5. Due a big curtailment in personal expenses in the retail segment, Aditya Birla Fashion and Retail has posted a loss of Rs.146 crore against the profit of Rs.202.64 crore for Q4FY20. Since, the trend is likely to continue for some time, it would be prudent to stay away from this counter for a while.
  6. Biocon Biologics receives a DCGI approval for Emergency Use of its drug CytoSorb to treat critical COVID-19 patients. A big positive for Biocon. Accumulate.
  7. Housing Finance sector is reportedly witnessing a rise in demand. Add Indiabulls Housing Finance and HDFC.
  8. Tube Investments of India has approved a fresh long-term borrowing of ~Rs.200 crore. For Q4FY20, it posted a higher PAT of Rs.59.46 crore on a revenue of Rs.1,031 crore. This is a good pick from the small cap sector.
  9. Pune-based KPIT Technologies affected by the coronavirus in H1FY21 expects a recovery by Q3FY21. At CMP, it would be prudent to accumulate this share gradually at lower levels.
  10. Quest Investment Advisors buys 14,17,988 shares of JMC Projects (India) at Rs.38.45/share. Positive for the company. Accumulate.
  11. On the back of rising demand, Ujjivan Financial Services reported an 80% higher consolidated PAT of Rs.77.43 crore for Q4FY20. Accumulate.
  12. NTPC has decided to foray into the electricity distribution business and plans to buy a 51% stake in two ADAG utilities in Delhi. Its future looks bright. Accumulate.
  13. “India plans to continue using Hydroxychloroquine among frontline workers”, says ICMR, even as WHO suspends its trial. A positive for Mangalam Drugs Organics, one of the least expensive manufacturers of this drug.
  14. For Q4FY20, Coromandel International posted a 112.2% higher consolidated PAT of Rs.234.20 crore on 8.8% higher sales of Rs.2869.32 crore. With the monsoon expected to be normal this year, this share must be added.
  15. SBI has slashed FD rates. This could result in higher volumes and positively impact its profitability. Add selectively.
  16. On the back of a rising taxes and lower consumption due to COVID-19, United Spirits reported a 57% lower PAT for Q4FY20. Sell now and buy at lower prices.
  17. Stride Pharma Sciences is working vigorously to develop a vaccine for COVID-19. Its working is also excellent. A good long-term buy.
  18. Granules India has received a certification that its drugs do not contain NDMA (N-nitrosodimethylamine) or other harmful chemicals. A positive for the company. Accumulate.
  19. Bosch had to suspend its production due to COVID-19 related complications. The disruptions may weaken its stock price. It would be prudent to stay away for some time.
  20. Indiabulls Ventures is an attractive contrarian buy at ~Rs.73. Strong promoters and good future prospects in reality makes it an excellent buy.
  21. Steel Strips Wheels bags new orders worth €150,000 from Europe and the USA. A big boost for this Automobile component giant which presently reported a decline in profit. Buy selectively.
  22. Kriti Nutrients has attracted the fancy of investors. The share can fetch a gain of 40% going forward on strong fundamentals. Buy.
  23. Sarla Performance Fibers, which is faring well is available at a multi-year low. The share is good for medium-to-short term gain. Accumulate.

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

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