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Whispers October 2018

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By IE&M Research

Stay put till mid-December

Domestic equity market has been radiating bearish sentiment since last many trading sessions amid weak global cues and rupee’s fresh fall against the US dollar. Some of the well-known names including BhartiAirtel, BhartiInfratel, Eicher Motors, Bandhan Bank, HUDCO, Indiabulls Real Estate, ICICI Securities, J.KumarInfraprojects, Jaiprakash Power Ventures, Jubilant Industries, KewalKiran Clothing, Max Financial Services, Supreme Industries, Tata Communications, TPL Plastech, Walchandnagar Industries and Zuari Global have hit 52-week lows. A very prominent analyst known for his accurate predictions has been advising his clients to stay on cash and not to get into the averaging game or fresh buying. He feels that venturing out with fresh fund before mid December would be a very bad idea.

Andhra Petrochemicals Ltd.  
BSE Code/ NSE: 500012/ ANDHRAPET; Face Value: Rs10; CMP: Rs 63
52 Weeks H/L (Rs) 85 – 35.15; Market Cap Rs (crore): 590

 

The company has a leadership position in 2-EH, I butanol and N butanol. The prices of all these chemicals have firmed up considerably since last few months and continue to remain strong. APL was established with a capacity to produce 30,000 MTPA of Oxo Alcohols at Visakhapatnam, Andhra Pradesh. The Plant has recently undergone an Optimization & Modernization Scheme to increase the capacity to 73,000 MTPA. Q1FY19 results were bumper where revenue went up from Rs115 crore to Rs165 crore and profit went up from Rs one croreto Rs31 crore. EBIDTA margins went up from 5.25% to 23.5%. Q2 result also expected to be strong and at par with Q1FY19 result. If that happens then  after two quarters of strong result market may re-rate the stock.

 

Mahindra Holidays & Resorts India Ltd.
BSE Code/ NSE: 533088 /MHRIL; Face Value: Rs10; CMP: Rs 212
52 Weeks H/L (Rs) 404/ 208.35; Market Cap Rs (crore): 2925

 

Mahindra Holidays & Resorts India Ltd., is a Mid Cap company operating in hospitality sector. For the quarter ended 30-06-2018, the company has reported a Standalone sales of Rs 234.54 crore, down -20.80 % from last quarter sales of Rs 296.15 crore and down -13.20 % from last year same quarter sales of Rs 270.22 crore. Company has reported net profit after tax of Rs 13.73 crore in latest quarter. The company had posted a net profit of Rs 32.33 crore for the corresponding period of the previous fiscal.Company has more than 50 resorts and has seen lot of traction in past few years. The way disposable income in India is increasing it is valid to assume that people will be traveling more than ever. Stock is available at a depressed price due to some accounting changes etc. Investors can use this opportunity to accumulate.

(Disclaimer: Readers must not forget that these are not recommendations and may not be backed by strong fundamentals. The information has been collected by IE&M team from analysts, brokers, fund managers and other market sources. Great care should be taken before taking any decision based on this information as the source might be prejudiced.)

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