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Finvestedge Weekly Market Insights



v  Hindustan Aeronautics has been granted approval for enhancement of working capital to Rs.12050 crore from Rs.7300 crore. Its profitability, which was 115% higher in Q2, is expected to remain strong going forward. A good PSU bet for the long term.

v  In spite of lower revenue, Kamath Hotels posted 74% higher PAT for Q3 due to tight control on expenses. Accumulate.

v  Titan’s trading volumes spurted after ace investor Rakesh Jhunjhunwala increased his stake in the company. Some positive news may be in the offing. Accumulate.

v  Despite a rise in slippages, Axis Bank posted 4.5% higher PAT for Q3. The management is optimistic about its FY20 results. Accumulate for good returns.

v  Edelweiss Financial Services claims to have not violated any foreign exchange regulations. A good contrarian buy.

v  With new product launches, Hawkins Cookers expects a much better performance in the next few quarters. Accumulate.

v  Power Grid Corporation of India bagged 13 out of 20 projects under competitive bidding. With a high dividend yield of ~5% and higher income on fresh projects, its future looks bright. Buy.

v  Reliance Infrastructure plans to become debt-free in a year or two. A good contrarian buy at Rs.22 considering its huge assets, positive arbitrage money in queue and lucrative businesses in hand.

v  Ujjivan Small Finance Bank doubled its profits to Rs.90 crore in Q3 with stable asset quality and NPAs at 0.04%. Accumulate.

v  Dr. Reddy’s Laboratories is steadily moving upward. With new product launches on the anvil, this is a good long-term bet.

v  Shrimp prices are on the rise due to the increasing demand from the US markets, which absorbs about one-third of the ~Rs.140000 crore Indian shrimp exports business. A good time to buy Apex Frozen Foods, Avanti Feeds, Waterbase and Zeal Aqua.

v  With 47% higher PAT for Q3, SBI Life Insurance Co. could rise further.

v  Raymond’s Q3 consolidated PAT zoomed 393% to Rs.196 crore on 13% higher sales of Rs.1885 crore. Accumulate.

v  Larsen & Toubro posted robust results for Q3 with 15% higher PAT of Rs.2352 crore. This stock deserves a place in every portfolio.

v  Volumes in the Shriram Transport Finance Co. counter have risen of late. Its NCD issue was also fully subscribed. A positive for the company.

v  Although RBL Bank’s Q3 PAT fell 69%, the management is confident of cleaning up its balance sheet by this fiscal year end. Hold.

v  The top-line of Butterfly Gandhimathi Appliances is growing due to its tie-ups with online sales agencies. This kitchen appliances stock is under-priced compared to its peers. Accumulate.

v  Cipla has received USFDA observations for its Goa facilities. However, the management does not expect it to affect its top-line. Investors can accumulate this stock on dips.

v  The housing finance sector is likely to get a good boost in the upcoming Budget. A good time to accumulate Indiabulls Housing Finance.

v  Granules India posted excellent results for Q3 with 44% higher EBITDA and an improvement in margins from 18% to 23%. Buy for solid returns within a year.

v  Lincoln Pharmaceuticals is the cheapest share available in the pharma space. With FY20E EPS of Rs.28-30, the stock is likely to fetch over 25% returns in the short-to-medium term.

v  Going by its Q2FY20 results, Jindal Stainless (Hisar) is likely to notch an EPS of Rs.13 for FY20. Buy for good returns.

v  With FY20E EPS of Rs.18+, NCL Industries (formerly Nagarjuna Cement) is amongst the cheapest shares in the cement industry. Accumulate.

v  Bajaj Steel Industries is likely to notch an EPS of Rs.75 for FY20. A conservative P/E of 5x will take its share price to Rs.375 in the medium-to-long term.

v  Meghmani Organics is likely to notch an EPS of Rs.11-12 for FY20. It is setting up a 50,000 TPA Epichlorohydrin project based on Epicerol technology at a capex of ~Rs.275 crore. Its future looks bright. Accumulate.


Disclaimer :
This is strictly for informational purposes only. It is not a solicitation to buy, sell in securities or other financial instruments. FINVESTEDGE do not accept culpability for losses and/or damages arising based on information in this post. Contact your investment advisor before investing.





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