MARKET WIZARD NEWSLETTER ISSUE 26

🎯Fundamental Stocks

▶️ D B Corp Ltd
▶️ Ion Exchange (India) Ltd
▶️ JSW Ispat Special Products Ltd
▶️ RPP Infra Projects Ltd

🎯Technical Stocks

▶️ Orissa Minerals Ltd
▶️ Salzer Electronics Ltd
▶️ S H Kelkar and Company Ltd


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Rakesh Jhunjhunwala's recent acquisition of a stake in Zydus Cadila's animal healthcare business has been funded by Barclays: Report.

Read at: https://www.moneycontrol.com/news/business/barclays-backs-rakesh-jhunjhunwalas-zydus-cadila-deal-report-7430791.html?utm_source=telegram&utm_medium=social

#MarketsWithMC: Take a look at the 10 stocks that moved the most last week.

Read at: https://www.moneycontrol.com/news/trends/sports-trends/why-does-playing-tennis-make-so-many-pros-miserable-7430681.html?utm_source=telegram&utm_medium=social

Florida is in the grip of its deadliest wave of #COVID19 since the pandemic began, a disaster driven by the highly contagious #DeltaVariant.

Read more at: https://www.moneycontrol.com/news/world/florida-grapples-with-covid-19s-deadliest-phase-yet-7430861.html?utm_source=telegram&utm_medium=social

#MCWeekendReads: Pheroza Godrej's Cymroza Art Gallery completes 50 years in October.

Read her interview to Deepali Singh about the early days of the gallery, what she wanted to do then and her art goals now: https://www.moneycontrol.com/news/trends/features/pheroza-godrej-the-two-cs-conservation-and-curatorship-are-what-i-am-focusing-on-7422381.html?utm_source=telegram&utm_medium=social

#MarketsWithMC: Here's how top market analysts foresee the market moving in the coming week 👇

https://www.moneycontrol.com/news/business/markets/consolidation-coming-after-market-rises-4-in-a-week-heres-what-analysts-say-7430671.html?utm_source=telegram&utm_medium=social

#ICYMI: After being moved at least three times due to the pandemic, the new James Bond movie ‘No time to die’ is finally set to release on September 30.

Read at: https://www.moneycontrol.com/news/trends/james-bond-film-no-time-to-die-to-release-on-september-30-check-trailer-here-7414051.html?utm_source=telegram&utm_medium=social

#MCPersonalFinance: SBI Balanced Advantage and ICICI Prudential Flexicap broke records and amassed the highest inflows seen for open-ended equity schemes.

But are #investors really all that keen to invest in NFOs? Kayezad E. Adajania decodes: https://moneycontrol.com/news/business/personal-finance/do-record-nfo-collections-of-sbi-and-icici-mutual-funds-suggest-retail-investors-are-ready-for-more-7414301.html?utm_source=telegram&utm_medium=social

Shilp Gravures is the pioneer and undisputed leader in Electro-Mechanical Engraving, has garnered 1433% higher Q1 EPS of Rs 4.6, which could lead to FY22 EPS of Rs 20 against FY21 EPS of Rs 16.7 on its small equity of Rs 6.1 cr. The share, which made a lifetime of Rs 180 on 11 Oct 2017 is expected to advance by 40%. Buy.

Technocraft Industries India, which manufactures drum closures, scaffolding, formwork, yarn & fabrics and engineering and design and has a 15MW power plant has notched 145% higher Q1 EPS of Rs 28.6, which could lead to FY22 EPS of Rs 85 against FY21 EPS of Rs 53.2. The share has the potential to touch Rs 1062 at a P/E of 12.5x. Buy.

Gujarat Craft Industries, manufacturer and exporter of PP/ HDPE coated woven products with diverse products like PE Tarpaulin, Plastic Sheeting, PP /HDPE Woven Fabric, Woven Sacks, Flexible Intermediate Bulk Containers/Bulk bags exports 80% of production has notched 31% higher Q1 EPS of Rs 4.7, which may lead to FY22 EPS of Rs 15+ against FY21 EPS of Rs 7.2. The share may cross the Rs 100 mark. Buy.

Alphageo (India), a provider of seismic survey data, processor of 2D and 3D seismic data and interpretation services for oil exploration and production has notched Q1 EPS of Rs 23 Vs minus Rs 22.5 (YoY) on a small equity of Rs 6.4 cr. This could lead to FY22 EPS of Rs 50+ and the share may cross the Rs 600 mark. Accumulate.

Morganite Crucible, 75% MNC of Morgan Metal, UK manufactures Silicon Carbide and clay graphite crucibles used to produce non-ferrous alloys has posted 1104% higher Q1 EPS of Rs 12 on its tiny equity of Rs 2.8 cr. This could lead to FY22 EPS of Rs 60. The share is poised to gain over 75% from the current level. Buy.

The GNFC share is going cheap as it posted Q4FY21 EPS of Rs 20, which could lead to FY22 EPS of Rs 65 against FY21 EPS of Rs 45. The share, which made a lifetime high of Rs 548 on 24 Oct 2018, could fetch a decent gain of 40%. Buy.

Rajapalayam Mills, a Ramco Cement group co. manufactures & exports a wide range of yarns. Its 14% stake in Ramco Cements, 9.7% in Ramco Industries and 2.4% in Ramco Systems is valued at Rs 3,675 cr. It has garnered 598% higher Q1 EPS of Rs 41.4, which could lead to FY22 EPS of Rs 140 against FY21 EPS of Rs 117.6. A P/E of 12x could take its share price to Rs 1680 in the medium term. A must in every portfolio.

Apar Industries, which is into Conductors, Cables, Speciality Oil and Lubricants exported to 100 countries has notched Q1 EPS of Rs 16.3 v/s – Rs 6 (YoY), which could lead to FY22 EPS of Rs 65+ as against FY21 EPS of Rs 42. The Rs 1.8 lakh cr. investment in power transmission between FY21-25 and 100% Railway electrification drive augur well for its future. A reasonable P/E of 14.5x can take its share price to Rs 942 in the medium term. Buy.

Heavy investment buying is noticed in the counter of Vedanta Ltd as the mining major achieved 312% higher EPS of Rs 11.4 in Q1FY22, which could lead to FY22 EPS of Rs 50 against Rs 32 in FY21. A reasonable P/E of 10x could take its share price to Rs 500. Buy cum interim dividend of Rs 18.50.

Faze Three Autofab, manufacturer of automotive textiles, posted its highest ever profit for FY21 and 209% higher Q1FY22 net profit of Rs.3.11 v/s Rs.1.01 in Q1FY21. Veteran HNI, Ashish Kacholia, bought 675688 shares of its sister co. Faze Three. Buy for good medium to long term returns. A close above Rs.135, can take it above Rs.150.Promoters hold 74.92%.

40 year old BSL Ltd. posted Q1FY22 net profit of Rs.2.53 cr. v/s loss of Rs.5.70 cr. in Q1FY21. Promoters hold 56.44% of its small equity of Rs.10.29 cr.,insurance cos. hold 2.85% & veteran HNI Sangeetha S holds 4.04%. Stock is available at PE of only 7. Buy for good returns in short to medium term.

Cash rich James Warren Tea may be a multi-bagger. With 7 tea estates and market cap of Rs.145 cr. and reserves of Rs.106 cr. you get huge tea estates for just Rs.39 cr. Available at PE of just 4.5x, trailing EPS of Rs.62 and promoter holding of 72.5%. Buy for good returns.

Foods & Inn processor of fruits pulp & vegetables posted 346% higher Q1 net profit of Rs.6.11 cr. v/s Rs.1.37 cr. in Q1FY21 on its small equity of Rs.5.03 cr. and huge reserves of Rs. 177.44 cr. A potential multi-bagger in the medium to long term.

Jaysynth Dyestuff posted 543% higher Q1 net profit of Rs.1.93 cr. v/s only Rs 30 lakh in Q4FY21 on its equity of Rs 87 lakh and reserves of Rs 83.53 cr. Record date for 20% dividend is 9th Sept. Promoters hold 74.75%, Stovec Industries holds 1.99% stake. Buy for good return in short to medium term.

Rana Sugars posted mind blowing Q1FY22 profit of Rs.54.11 cr. v/s loss of Rs.2.67 cr. in Q1FY21with EPS of Rs.3.52. It is also into cattle field while its distillery sells liquor under its own brands. The stock has corrected from Rs.38 to Rs.26 and is the cheapest sugar share. Buy for good return in the medium to long term.

Tinplate Co. of India recommended in the last issue zoomed over 40% in the week as Tin prices soared 60%. Hindustan Tin Works recommended two weeks back trades cheap at Rs.132 and can be kept on the radar for a quick 25% appreciation.

Meghmani Organics targets FY24 revenue of Rs.3000 cr. from Rs.1500 cr. at present. The stock trades at Rs.130 and should be bought at every decline for medium to long term.

Pitti Engineering, the largest exporter of electrical laminations, is witnessing unprecedented orders. The stock has corrected from a high of Rs.200+ to Rs.156 level and is ripe again for an upmove.

Capacite Infra, a sub-contractor to all leading builders like Oberoi, Godrej, Arihant should be kept on radar. The stock has nearly halved from its high due to the pandemic. With an order book of Rs.8000 cr+ the stock is worth a punt for 50% appreciation.

Renuka Sugars, the largest manufacturer of ethanol, is a steal and will be the biggest turnaround story in the sugar space given govt. plan to allow 20% ethanol blending with petrol as auto fuel.

Stel Holdings recommended @ Rs 138 last week rose to make a new 52 week high of Rs.175 appreciating almost 27%. Traders are advised to book profits.

Nelco recommended @ Rs. 470 last week rose to make a new 52 week high of Rs.593 appreciating almost 26% in a week. Traders are advised to book profits.

The jute industry is faring well and this debt-free sector is a good investment option for investors seeking safety & steady returns. It will be rewarding to study Cheviot, Ludlow & Gloster.

Deepak Nitrite continues its upward journey with rising profitability. Watch its share price grow and market cap march ahead.

GNFC is one of the most attractive scrips in the market. This cash rich co. with stabilised TDI business could have 50% upside.

Panchsheel Organics, manufacturer of active pharma ingredients, intermediates & finished formulations for both human & veterinary therapies, plans to boost exports by 4% to 10%, which will raise revenue and profits. Buy it for quick 50% returns.

Medinova Diagnostics, a subsidiary of Vijaya Diagnostics trades at a market cap of 4 times to FY22E sales and 17 times to FY22E earnings v/s industry average of 14 times to sales and 60 times to earnings looks attractive. Buy for 50% gains in the short term.

Sunteck Reality has announced its mega Vasind housing project ‘Forest World’, which is expected to garner a strong response. CSLA projects a share target price of Rs 470 from the current Rs 375.
BS

*Consolidated debt of steel industry at 9-year low on robust earnings: Icra*

The industry’s consolidated borrowings now are at their lowest levels since March 2012.

*The domestic steel industry’s consolidated debt narrowed to a nine-year low of Rs 2 lakh crore as of July-end 2021,* rating agency Icra said on Thursday, *revising the sector’s outlook to ‘positive’ from ‘stable’.*

"Given the strong earnings growth and capex curtailments following the pandemic related uncertainty, steelmakers started to aggressively deleverage since the second quarter of FY2021. *This trend is reflected by the industry’s consolidated debt levels declining to Rs 2 lakh crore in end-July 2021, from Rs 2.6 lakh crore in end-July 2020, registering a sharp decline of over 21% in a short span of a year,”* Icra said.

"On taking a closer look at *the industry’s consolidated borrowing per metric tonne of installed capacity, it stood at $180 in July 2021, shrinking by almost half from $350 prevailing in November 2008.* This suggests that domestic *steel companies are now significantly less leveraged than in FY’2009, when the last steel supercycle ended, following the global financial crises,”* it said.

The agency said benefitting from a low base and improved demand from several steel-consuming sectors, *domestic consumption to grow at around 12% in the current fiscal. Last fiscal, consumption saw a 7% contraction over the previous fiscal. “The steel production growth in FY’22 is likely to be higher at around 14%, getting traction from the increasing trend in net finished steel exports,”* said Jayanta Roy, senior VP & group head, corporate sector ratings, Icra.

*"Our assessment indicates that net exports are expected to increase to around eight million tonne (MT) in the current year from six (MT) in FY’21, as domestic mills try to increase their export footprint, given the opportunity to fill up the vacuum left by the Chinese mills due to the Government’s curbs,”* Roy added.

*On the supply front, from JSW Steel and NMDC, eight MT of new capacities are expected to hit the market in the current year to take the installed capacity to 150 MT, but the same is likely to be absorbed by incremental steel consumption of 12 MT expected in FY’22.* This will lead to *revising the industry’s capacity utilisation rates to 78% in FY’22 from 72% in FY’21.* Within that, *the leading mills however are expected to operate at a significantly higher capacity utilisation.*