TOWER TALK 29-05-2017

TOWER TALK 29-05-2017
 Gulf Oil Lubricants India’s FY17 PAT climbed 21% on 12% higher sales. The automobile industry is faring well and the next few quarters are expected to be equally good. Accumulate.
 ‘Achhe Din’ are here for Kajaria Ceramics. Affordable housing projects and inclusion of the stock in the major indices will boost its valuation.
 Titagarh Wagons is a good buy as it expects big orders from the Indian Railways based on its huge expansion plans.
 International Health plans to acquire Fortis Healthcare and Fortis Malar Hospitals. A right prescription for healthy growth. Buy both the stocks.
 APL Apollo Tubes posted robust Q4 and FY17 results with an EPS of Rs.62 for FY17. An attractive buy.
 Thirumalai Chemicals posted excellent Q4 and FY17 results with dividend payout of Rs.18.75/share. It may post and EPS of ~Rs.100 in FY18. A screaming buy at the current level.
 Motherson Sumi Systems has huge expansions lined up for its three plants coming up in India. A good long-term haul.
 Speciality chemical leader, Aarti Industries, is on a roll with profits for FY17 beating market expectations and an EPS of Rs.37. A good long-term buy.
 CARE has downgraded Reliance Communications. The stock is likely to fall further. It would be prudent to sell and re-enter at lower levels.
 Dish TV India’s posted PAT of Rs.109 crore for FY17 on the back of higher subscription revenues and the same is likely to continue. Buy.
 Globus Spirits is on a high. Demonetisation seems to have had no impact on its earnings. The management is sanguine about its future earnings as well. Accumulate.
 Larsen & Toubro expects to bag a big pie of defence orders worth Rs.40000 crore that are likely to be floated by the government.
 State Bank of India has witnessed a slowdown in its NPA build-up and a positive turnaround in the demand for loans augurs well for its growth. Buy.
 ONGC and Oil India will not have to share oil subsidy in 2018. A positive for both companies.
 Ashok Leyland continues to beat market expectations. The current sluggishness is solely due to supply constraints. The Company expects margins to stay high and its outperformance merits a buy.
 The textile industry will grow at a healthy pace over the next few years. Sumeet Industries, which posted a 106% jump in PAT, is a choice addition to your portfolio.
 RBI is considering imposing a ban on branch expansions by United Bank of India. Dividend restrictions are also possible. Sell immediately.
 Post demerger, Sintex Industries has become a must buy. Its EPS of Rs.3, huge expansion plans and high volumes suggest that the stock is poised for a big hit.
 Himatsingka Seide, a leading manufacturer of silk garments, posted good results with 45% jump in FY17 EPS at Rs.18.5. Accumulate.
 Lincoln Pharmaceuticals is expected to notch an EPS of Rs.15.5 in FY17 and Rs.20 in FY18 post expansion. The stock is likely to touch Rs.300.
 Talwalkars Better Value Fitness may post an EPS of Rs.22 in FY17 and Rs.27 in FY18. A reasonable P/E of 12.5x will take its share price to Rs.338 in the medium-to-long term.
 Steel Strips Wheels is expected to notch an EPS of Rs.50 in FY17 and Rs.56-60 in FY18 going by its expansion initiatives. The stock may cross Rs.800.
 Global Vectra Helicorp posted an EPS of Rs.16 (Cash EPS Rs.40) for FY17 and is all set to notch an EPS of Rs.20 in FY18. The stock is heading towards the Rs.200 mark.
 Some brokerages have a buy rating on Yes Bank with a price target of Rs.1800-2000. Long-term investors will reap a rich harvest in this counter.
 TGB Banquets & Hotels has ventured into frozen food after selling off its Surat Hotel for Rs.150 crore. Its market cap stands at Rs.181 crore. Watch the stock zoom to Rs.100 soon.
 Kamat Hotels (India) has posted excellent results for FY17 with PAT of Rs.44 crore and an EPS of Rs.19. Buy for multibagger returns.
 Maithan Alloys has corrected over 20% from its 52-week high made recently and is ripe for a sharp up-move again. The stock could touch Rs.700.
 Looking at the share prices of Ceat and CESC, Stel Holdings could easily double or treble from the current level.
 MTNL is likely to monetize its surplus land which is at prime locations across Mumbai. Also, its merger with BSNL is on the cards. Watch its share price double soon.
 At a time when big pharma companies are suffering on account of USFDA issues, Orchid Pharma recently obtained USFDA clearance for its facility along with an ANDA approval. This stock may be a dark horse.
 Star Paper Mills is a hidden gem in the paper space. The stock is grossly undervalued and can easily double from its current level.
 An Ahmedabad-based analyst recommends Balasore Alloys, Cineline India, IOL Chemicals & Pharmaceuticals, Munjal Auto Industries (available cum 100% dividend and cum 1:1 bonus), Manpasand Beverages, Super Crop Safe and Zee Learn.