Money Times Talk- JUNE 11, 2023

*SBI Life* is the acquirer of the life insurance business of Sahara India Life Insurance Co. to protect the interest of the two lakh policyholders. A big Positive. Add. USFDA has closed the inspection of *Zydus Lifescience’s* animal health drug manufacturing facility in Ahmedabad with nil observations. A big positive. Buy. *Lupin’s* Darunavir tablets, which reduce the amount of HIV in the blood, had an estimated annual sale of $308 million in USA as per IQVIA MAT in March 2023. Add. The Tamil Nadu Govt. has waived off 10% local body tax on *Wonderla Holiday’s* Chennai project for 10 years if its commercial operations begin within two years. A big positive. Buy. *Tata Motors* to build a lithium-ion cell plant in Gujarat for Rs.13000 cr. With lithium deposits in J&K and Rajasthan, this business is set to boom. Add for the long term. Plutus Wealth Management has picked up shares of *MTAR Tech* worth Rs.247.22 cr. An indication of things to come. Add. *Eicher Motor* expects double digit growth to continue for the next few years. This visibility merits an Add. *Dahanuka Agri* has hit a 52-week high after the launch of its biological fertilizers and insecticides, that have higher profit margins. Add. *Mazagon Docks Shipbuilders* to rally on its tie-up with Thyssen Krupp of Germany to bid for 6 submarines for the Indian Navy. It already has an order book of Rs.40000+ cr. Add. *Maharashtra Seamless* expects double digit growth in domestic markets and exports to continue for few years. It is also scouting for inorganic acquisitions. Add. Monsoon is on schedule. So, higher demand for fertilizers will generate big profits for *GSFC*. Its CMP is inclusive of a final dividend of Rs.10/share. Buy. *Man Infra* has big expansions on hand as new reality projects in Mumbai could generate good revenue over the next few years. EPC projects on hand are over Rs.980 cr. Add. *Gravita India’s* promoters sold 1.8% equity at Rs.586/share in a block deal leading to a price correction. Sell now and add at a lower price. *HAL* to make Jet engines in India with GE. It will split its share to make it more affordable to investors. A big positive. Add. *Macrotech Developers* has hiked prices by 8% and likely to fare better in FY24, which will help it meet the interest cost on rising debts. Accumulate. *CCL Products* has acquired several coffee brands from the Lofbergs Group, which enables it to access the major supermarkets in the UK. Add. *Tanla Platforms* to acquire VF Digital India for Rs.346 cr. The acquisition of ValueFirst Middle East FZC will give it a footprint in Saudi Arabia, Indonesia and UAE. Buy. *Zydus Life* has received USFDA nod for acid reflux and ulcer drug Esomeprazole Magnesium (delayed-release oral suspension). A big positive. Add. *Indoco Remedies* has received EU GMP certificate from German Health Authority for its manufacturing facility (Plant III) located at Baddi facility. A big positive. Buy. *Torrent Power* to develop 3 Hydro Projects of 5700 MW in Maharashtra at Rs.27000 cr. and employ about 13500 people in the construction over 5 years. Add. *Capacite Infraprojects* has a Rs.224 cr. order for Raymond’s residential project at Thane. In May, it got a Rs.478 cr. order for Godrej’s residential towers at Mahalaxmi in Mumbai. Buy. *GNFC’s* 50KTconcentrated nitric acid to start commercial production in FY24, which will improve its financials. Its new 20 KTPA Formic Acid add on capacity has been commissioned. Buy for the long term. *Indian Bank* notched FY23 EPS of Rs.44.8, which may lead to FY24 EPS of Rs.55+. A reasonable P/E of 8x could take its share price to Rs.450+ in the medium term. Add. *Banswara Syntex* notched FY23 EPS of Rs.33 and is set to garner FY24 EPS of Rs.38+. Buy for 30% gain. West Coast Paper Mills notched 207% higher FY23 EPS of Rs.142.6, which may lead to FY24 EPS of Rs.170+. Buy for 30% gain. J&K Bank posted 139% higher FY23 EPS of Rs.11.4, which may lead to FY24 EPS of Rs.18+. Buy for hefty gains. Mahanagar Gas’ FY23 NP rose 32% to Rs.790 cr. on 77% higher net sales of Rs.6299 cr. on y-o-y basis. It declared a final dividend of Rs.16/share. Add. *Rana Sugar* is specialized in manufacturing Sugar, Alcohol as well as power posted an impressive Q4FY23 as PAT zoomed 173.58%. Add for good returns. *Suzlon Ltd*. recorded highest ever weekly volumes and highest closing after 2018. This turnaround performance, strong future commentary and stock rise points to a bright future. Add. *Prestige Estate* has executed 281 projects, has 57 ongoing projects and plans 44 more with 680+ acres of land bank as at FY23. Management’s strong FY24 guidance is attracting investors. Buy. *Bharat Electronics’* PAT grew 28% to Rs.3006.67 cr. on 15.22% higher sales to Rs.17333.37 cr. Its order book stands at Rs.60690 cr. Stock has given highest ever closing on Friday. Add. *HCC* gave a highly bullish breakout with big volumes in Friday’s negative market. FIIs hold 12.29% and DIIs hold 12.45%. With the big infra boom, it is likely to cross its 52-week high. Add. *Shree Digvijay Cement* posted 90% higher Q4 profit. Its FY24 will be even better given the strong demand for cement, declining coal prices and trebling of capacity to 3 MMTPA. Keep it on your radar. Steel Strips Wheels group company, *Indian Acrylics* posted a very sharp turnaround with Q4FY23 NP at Rs.19.34 cr. as against a loss of Rs.23.84 cr. Add. *Rico Auto’s* Q4FY23 NP zoomed 199% to Rs.25.91 cr. from Rs.8.65 cr. in Q4FY22. Its equity of Rs.13.53 cr. is supported by reserves of Rs.675.72 cr. Keep it on your radar. *Pennar Industries’* FY23 PAT rose 80% to Rs.75.43 cr. from Rs.41.91 cr. in FY22. The management expects strong growth in top line and expansion in margins in FY24. Add. *HSCL’s* FY23 NP catapulted 453%. Its strategic investment in Sicona Battery Technology, Australia, could boost a sharp rise in top line and in margins. Keep it on your radar. *Transformers & Rectifiers’* FY23 NP zoomed 197% to Rs.42.35 cr. from Rs.14.28 cr. in FY22. For Q4FY23, its NP grew 2495%. Add for hefty gains. *Denis Chem* produces sterile intravenous injectables. Its share trades at a P/E of just 14x and the dividend yield is 3%. Varun Daga, managing partner of Dream 11, holds 11.5% stake in it and FIIs hold 20.74%. Add for hefty gains. The consumption story in the upper segment of society is intensifying. Beneficiaries include: *Titan Ltd.,* which keeps growing by space, products and locations. *Trent Ltd.* has the right formula for product positioning and pricing. *Phoenix* is getting established as an upper class mall brand. Their valuations can ignore the standard P/E multiple approach. *Univastu India's* FY23 sales rose 36.67% to Rs.80.13 cr. from Rs.58.63 cr. in FY22 and PAT grew from Rs.5.22 cr. to Rs.6.58 cr. and is expected to rise further. Add. *Cell Point Ltd.’s* NSE SME IPO opening on 15th June is said to be an offer at a P/E multiple of 6.5x, which is indeed attractive.