Tower Talk

*Tower Talk*

📍 Mercedez Benz (India) reported a 12% sales growth in the last six months. Force Motors, which makes engines for Benz, is a big beneficiary. Buy.
📍 Tata Steel reported a 7.8% jump in Q1 sales. The next few quarters are expected to be equally good. A good buy.
📍 Indiabulls Real Estate has entered into an agreement with Blackstone to sell its commercial assets in Chennai for Rs.850 totalling crore calendar year so far. A positive for the company.
📍 CARE has upgraded the credit rating of Yes Bank’s Bonds from AA+ to AAA. The bank has also received SEBI’s license to launch its custodian of securities business. A positive for the company.
📍 Tata Motors plans to incur capex of ~$1000 mn and launch about a dozen new models in the next few years. Its current beaten down share price merits a buy.
📍 KEC International has obtained new orders worth Rs.1357 crore in the transmission and distribution (T&D) segment. A big positive for the company.
📍 Companies engaged in the shrimp feed business are expected to report bumper profits for Q1. Buy Avanti Feeds, Apex Frozen Foods and Waterbase.
📍 Based on excellent Q1 results, Prakash Industries is expected to post an EPS of ~Rs.43 in FY19. The stock is likely to come out from the ASM category in a few days. An excellent buy.
📍 China has decided to reduce import tariffs on cancer drugs from India. Natco Pharma and Biocon must be bought.
📍 Sterlite Technologies will buy 100% stake in Italy’s Metallurgica for ~$54.3 mn through debt financing and
internal accruals. A big positive for the company.
📍 Lupin has received USFDA’s approval for its malaria drug Hydroxychloroquine sulphate tablets. Buy.
📍 Dish TV India reported a major turnaround in Q1. The management expects the rest of the year to be equally good. Buy.
📍 ICRA expects the auto-component industry to show CAGR growth of 10-12% over the next few years. Buy Minda Industries.
📍 The replacement demand for tyres is picking up. It may be prudent to accumulate JK Tyre Industries.
📍 India’s largest software exporter TCS reported a 23% jump in PAT to Rs.7340 crore. Better times ahead. Buy.
📍 IndusInd Bank reported a 24% jump in PAT to Rs.1035.72 crore driven by higher NIM (net interest margin) and other income. Accumulate.
📍 An announcement about LIC making an open offer to the shareholders of IDBI Bank is boosting its share price. A fairly good buy at the current level.
📍 FPIs are dumping their holdings in Manpasand Beverages. Once this ends, the stock will resume its northward journey. Hold on to your investments.
📍 Phillips Carbon Black is scheduled to commence its 50,000 TPA plant at Mudra in Gujarat in the next few months. Another 30,000 TPA plant at Palej in Gujarat will be ready by Q1FY20. This ~Rs.4000 crore capex augurs well for the company. Buy immediately.
📍 Can Fin Homes, a subsidiary of Canara Bank, plans to raise up to Rs.6000 crore via NCDs (non-convertible debentures) on private placement basis to expand its home loan business. Buy.
📍 Realty major Sobha Ltd has sought shareholders’ approval to raise up to Rs.700 crore via NCDs on private placement basis to execute its real estate projects. A big positive. Buy.
📍 Punjab National Bank (PNB) and Carlyle together intend to sell 51% stake in PNB Housing Finance. This will help PNB to combat NPA casualties caused by the Nirav Modi group. Buy.
📍 The latest grey market premium for the TCNS Clothing Co. IPO is Rs.26-28 and HDFC AMC IPO is Rs.155-160.

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