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Please remember, these are not recommendations/ suggestions to buy or sell. Strictly for educational purpose the Indian Economy & Market Research Team has collected these details from the public domain for our subscribers as these couldn’t be a part of our regular monthly magazine.
Himachal Futuristic Communications Limited, engaged in telecom products, has raised Rs 600 crore via QIP and allotted 8,72,72,727 Equity Shares at the issue price of Rs 68.75 to 21 buyers like Reliance Ventures, Quant MF, IIFL Wealth, and Elara India amongst others. In last 6 months its sales, operating profit and net profit were up by 33, 67 and 135 per cent respectively. On TTM basis it has recorded Rs701 crore operating profit. Engaged in high-class R&D products it would be the biggest beneficiary of government’s last mile connectivity and introduction of 5G. The company will declare its result on Monday and may see some volatility but it could prove a long race horse.
EID Parry (India) has 6 sugar factories with 40,300 ton per day cane crushing capacity, 5 distilleries of 297 KLPD capacities and a 140 MW power plant. This Murugappa group company is thus active in sugar, ethanol and nutraceutical business. However, with a market cap of Rs 9200 crore it has 56.39 per cent stake in the group company Coromandel International which has a market cap of Rs23,000 crore. Thus the calculation makes the company the best in most fancied sectors sugar as well as fertilizer space indirectly.
Lux Industries is the largest player in hosiery with 14 per cent market share. With above 100 products, 16 brands and mega film stars as brand ambassador on TTM basis it has registered 21 per cent operating profit margin which is highest. In last 6 months its sales, operating profit and net profit were up by 66, 91 and 100 per cent respectively. On TTM basis it has recorded the highest ever sales, operating profit and net profit. Its peer group company Dollar Industries has given 50 per cent return in January so far whereas Lux didn’t show any up move. But industry watchers are confident that it will shine in the reflected glory certainly very soon.
GE T&D India, an MNC, is a leading player in the power transmission and distribution business. After long uneven performance the capital goods sector is showing good momentum. The counter at Rs 475 made all time high in January 2018 but now available at Rs 140 only. It has enough space to move up which hopefully it will as the sector performance indicates.
Manakasia Steel is the flagship Company of the Manaksia Group and its major products include Cold Rolled Steel Sheets & Coils, Galvanized Steel Sheets & Coil and Color Coated Steel Sheets & Coils. In last 6 months its operating profit and net profit were up by 37 and 43 per cent respectively. On TTM basis it has recorded the highest ever operating profit and net profit. In last 15 days it has shown the highest ever traded monthly volume in its history. The up move coupled with volume shows some big investors are showing interest. At Rs 49.50 it is completing its long term rounding bottom break out and ready for an up move.
Granules India was earlier discussed in our 7th and 10th edition when it was trading at around Rs 305, now available at Rs 357. During last 18 months it was in consolidation period. On technical charts first a pole was formed before moving to sideways trend. Now a flag pattern is visible which indicates that from here on a new uptrend will start. The counter had made its high at Rs 438 in December 2020 and now slowly may inch towards reclaiming that point.
Taj GVK Hotels & Resorts manages some of the prestigious properties in the hotel sector. Delta Corp’s Q3 performance has clearly given a message that companies active in tourism and hotel industry will declare good results. Also cases of new variants are increasing but the government doesn’t seem in mood to declare lockdown. Taj GVK had made an all-time high at Rs 342, available at just Rs 143 may cross double century in next 2-3 months if all goes well as expected.
Ramky Infra is an integrated construction and infrastructure development. It has delivered a range of construction and infra projects in sectors such as water, wastewater, transportation, irrigation, industrial construction, power transmission & distribution, residential, commercial and retail property. Modi government has in last 6 years has done 26 lakh capex in infra and more is in pipeline. The counter can show strong momentum and be a part of the rally that comes immediately before the budget in infra sector.
EaseMyTrip was the lone leading online platforms which came out with IPOs in 2021, where Promoters holding was above 75 per cent otherwise most wanted an easy exit for themself and their investors. With its resilient business model the company has clocked a four-fold jump in profit in the Q2FY22 and acquired 1.5 crore flight/hotel booking users. Its board has approved issuance of bonus shares. The investor friendly company appears to be good for long term.
Sobha Limited was touted to be Infosys of real estate sector due to its corporate governance when its IPO came in November 2006. In last editions we discussed Sunteck Realty, Oberoi, Kolte Patil and Lodhas – all gave wonderful returns. The sector faced a downside trend for 15 years, yet Sobha continuously gave dividend and never skipped a single year. It also didn’t raise money through equity. In last 6 months its sales and net profit were up by 53 and 159 per cent respectively. Q3 business updates are provided very good and the counter may reach four figure. We feel the sector may prove to be the Sector of the Year.
Despite the third wave of Covid engulfing the country, Dalal Path still finds its regulars looking up at the TV screen and discussing stocks. Some of the names our team heard are – Triveni Turbine, Jain Irrigation, Aegis Logistics, Jubilant Ingrevia and Raymonds. Might be worth a second look.
THE SCOOP OF THIS WEEK
BHARAT DYNAMICS is one of the manufacturers of ammunitions and missile systems. In last 6 months its sales was up 143 per cent and against Rs 52 crore losses it has recorded a profit of Rs 22 crore. Being active in a unique space the counter can move up substantially as it always happens that these types of counters are in momentum before the budget.
