|May 7, 2017||Sanjiv Bhasin||Dish TV, Engineers India, Equitas Holdings, Godrej Properties, Gujarat Pipavav Port, NBCC, Reliance Power||Reliance Power is our dark horse which can be re-rated. The results were far ahead of the market. It should be a big beneficiary of the power, 73% prime load factor and so on.
Gujarat Pipavav is at Rs 160. Compared to the valuation you give Adani Port, the fair value is closer to Rs 225, 43% is owned by APM and there was some rumours of them exiting which the company has denied. The global freight, Baltic Freight Index and the global trade is looking robust so that should be an added beneficiary.
Dish TV has borne the brunt because of the Reliance Jio effect. That is misplaced. Their ad revenues, their subscription base, all are showing a healthy growth and we think that could be an outperformer going forward.
We have been regularly very, very bullish on NBCC, EIL and Godrej Property, buy on decline for a 20% upside by the end of the year.
Equitas Holdings numbers will get priced in. We have a buy on this and a longer term rating of Rs 200. Pedigree management, small-midcap banking licence and most of the weakness as far as the last quarter delinquencies already played out. The asset quality could only improve. Given the professional management, this would be one of the better-better stocks which we have in the microfinance which can actually be an outperformer in the next two years.
Free Stock Market Tips & Recommendations By ExpertsSeveral leading stock market experts daily offer free stock tips and recommendations about which stocks to buy and sell. Some experts offer tips for intraday trading purposes. Others offer recommendations of high-quality stocks for long-term investment.
Some experts who are knowledgeable about stocks and whose views are valuable include pundits like Rakesh Jhunjhunwala, Ramesh Damani, Basant Maheshwari, Samir Arora, Dolly Khanna, Vijay Kedia, Ashwani Gujral, Porinju Veliyath, Sudarshan Sukhani, Ambareesh Baliga, SP Tulsian, Prakash Diwan, Mudar Patherya, Sandip Sabharwal, Daljeet Kohli etc
All of these experts are highly trustworthy and are known for their honesty and credibility. Some stocks recommended by these experts have become huge multibagger stocks and have created immense wealth for investors.
On this page, we will set out all the stock picks and recommendations of the experts in a systematic manner so that they can be tracked and we can see how much are the gains for investors and traders who follow them.
You can filter the data between fundamental analysis and technical analysis.
|Date||Stock Expert||Stock||Buy or sell advice|
|May 5, 2017||Avinnash Gorakssakar||Dewan Housing Finance, Gujarat Ambuja Exports||Gujarat Ambuja Exports was incorporated in 1991 and largely specialises in agro processing, especially soya oil processing. It is also into cotton yarn and power generation. In fact, almost 50% of the revenue comes from agro processing. Another 40% comes from a starch through corn processing and this has been a very value added kind of segment for the company.
The cotton yarn business is not a very significant business. It contributes about 6%, power contributes about 3% to 4%. Coming to the financials of the company, it has been posting quite reasonably good numbers since the last couple of years.
Last year, the company posted a top line of Rs 2700 crore, EBITDA of Rs 185 crore and a bottom line of Rs 100 crore last year. The traction in the first nine months of the current financial year that is FY17 has continued pretty well. We have seen a top line of almost Rs 2300 crore for the first nine months which is up by almost 30% odd while both EBITDA as well as the bottom line have multiplied by almost 70%.
In fact, the company has already recorded a bottom line of Rs 125 crore for the first nine months as compared to Rs 100 crore last year.
Most of the improvement has come in from the maize processing unit where margins are almost as twice as that of the soya unit.
The second stock we like is a housing finance stock which we had recommended earlier also. It is Dewan Housing Finance. We believe that Dewan Housing Finance is going to be a key beneficiary of the affordable housing segment and is a very prominent player in the tier-2, tier-3 city markets.
The company’s overall loan book consists of almost 75-80% retail borrowers, about 20% comes from the corporate loan book and clearly loan against property constitutes another 15-20%.
Looking at the kind of growth in the loan book in the last three quarters, the company has done commendably well despite the kind of demonetisation impact and we believe that at least 19-20% loan book growth is easily possible.
In fact, in terms of asset quality the management has been quite strong on its credit monitoring mechanism and the asset quality levels both at the gross and the net level are quite low, in fact below 1%.
Our sense is that not only the fourth quarter for FY17 is going to be a strong quarter but clearly FY18 is also going to be a very strong quarter.
We expect for FY17, the company should post a profit of Rs 921 crore and thereafter for FY18 and FY19, the average growth in the profit should be about 17-18% with strict monitoring on the asset quality.
We suggest that investors should buy at the current level and despite the stock having moved up there is a good potential and a risk reward ration even from the current levels. We have a target of around Rs 501 over the next 12-15 months.
|April 13, 2017||Anand Rathi, Siddharth Sedani||Britannia Industries, UPL||Buy Britannia Industries multibagger. If you look at the Q4 numbers, the volume growth is expected to be around 4% and revenue growth around 18.5%. Demonetisation will impact the numbers a little bit but overall if you look at the January to March quarter, in terms of rising input prices, it is negated and offset by the hike in input costs. The premiumisation of the products has helped gain a market share for Britannia and they have increased their market share by 150 bps against Parle. Overall, in terms of new product launches and product mix, Britannia looks very interesting with a medium to long term horizon and a target of Rs 3750.
UPL is my second wealth creation idea. We are quite optimistic on the rural theme. We believe in terms of agri inputs and crop protection, UPL fits the bill. Exports account for 75% odd production , while 20-25% is for domestic market. We believe UPL can grow 19% CAGR in terms of sales is concerned for next two years. Margins can be intact around 22% to 23% in terms of EBITDA operating margins. With 13 times FY19 valuation, UPL in terms of rural theme and agri inputs looks very interesting with a target of Rs 1095.
|April 13, 2017||Dharmesh Kant||Bharat Electronics, Tata Motors, Yes Bank||For FY18, the top three ideas which one can bet on is from the defence sector. Bharat Electronics is poised for a very good and meaningful year. Nothing has happened in the defence sector on the announcement front so we are now close to having some good contract deals and they will get the first mover advantage. Already it has a very strong balance sheet, 20 plus ROEs, 20% plus kind of CAGR growth on the earnings front and order book is robust at 3.5x for next three years. So that is one idea where you can expect a doubler out there.
Yes Bank from the private sector banking space is very good investment theme playing out. Management expects 20-22.5x kind of loan book growth which we think is feasible given the track history of Yes Bank and the way they have been targeting various segments be it retail or MFI and the corporate segment, so that is the second idea.
The third idea would be from the automobile space, Tata Motors would be the top pick out there. I think lot of valuations play and valuation catch up play is poised for Tata Motors. The JLR has been doing phenomenally well and with new launches specifically the F-Pace if you go and see it is amazing vehicle. So those launches will have a good traction for Tata Motors and domestic CV cycle is around the corner to turn around. So again a good value buy.
Of these three stocks, Yes Bank may look to be expensive as of now but the type of growth trajectory which will unfold it is justifiable. So these three are the multibagger ideas I think one can invest into for one year perspective.
|April 13, 2017||Ashish Kapur||Cera Sanitaryware, Hindustan Sanitaryware, Kajaria, Orient Bell||Buy Orient Bell. There are lots of buoyancy in the market on the back of the housing boom. We have seen housing finance companies really go up in the last few months. We have also seen cement, steel and other building material companies prices sky rocket. In the building material space, there is also a tile companies while the established players like Kajaria, Hindustan Sanitaryware, Cera Sanitaryware all have done very well and are quoting at very high valuations, my pick in this segment remains Orient Bell.
The company is still available at a very reasonable valuation partly because its financials are yet to show any significant improvement. The company took over Bell Ceramics in 2010 December and turned it around in a record time of 15 months but because of this takeover, the financials have taken time to improve and if you compare it with its peers it is available at very reasonable and a deep discount valuation.
|April 13, 2017||Ashish Kapur||Elecon Engineering||Elecon Engineering has two divisions – material handling and transmission. On the material handling equipment, over last few years, it has performed pretty badly on the back of very tepid economic and industrial growth. However, we are seeing signs of pickup. The order book has shown a traction of 43% and there are visible signs of recovery happening in this segment. Now given that and given the fact that we are expecting industrial growth to pick up going forward, the material handling equipment should do very well going forward. The other good thing with this company is that they have a very wide range of products in this segment and cater to nearly every industry, so to that extent it is a very visible and sustained growth going forward.|
|April 1, 2017||Stock Axis||Jayant Agro||Jayant Agro-Organics Limited (JAOL) is an emerging global oleochemical company with leadership in the castor-based specialty chemicals industry. With proven research capabilities, strict adherence to stringent quality controls conforming to International Standards and flawless record of honoring delivery schedules it is no wonder that Jayant Agro-Organics Ltd. is the preferred partner of choice worldwide for sourcing of castor oil and castor oil derivatives. With the long-term approach we have adopted to the industry it is no wonder that we balance your requirement equations not only chemically but also economically.
Largest player in Castor oil and derivatives:
India accounted for more than 90% of total global castor oil exports. India's global dominance makes IAPL a global giant too, with the company providing about a fourth of the world's castor oil. Castor oil and its derivatives are unique in the sense they can replace crude oil in certain applications in the chemical industry.
Vithal Castor Polyols Private Limited – expansion in JV:
Vithal Castor Polyols (VCP) is an Indo-Japanese joint venture between JAOL (50%), Mitsui Chemicals Inc. (40%), and Itoh Oil Chemical Co. Ltd (10%) founded in 2013. Vithal Castor Polyols will manufacture castor oil based polyols. VCP has set up a manufacturing plant at GIDC Jhagadia, Gujarat, in April 2016 with capacity of 8000 MT per annum at a capex of Rs.33 crores. The plant has recently being commissioned and hence is at low utilization level. Mitsui has tied up with a Korean company in order to market JAOL’s products across the world. At full capacity, the management expects to garner revenue of Rs. 100-120 crore. This JV will also use castor oil manufactured by IAPL for doing value addition.
India’s dominance in castor seeds world:
India is a global giant in castor seed, supplying about 80-85% of the world's production. India produces 1.3 million tonnes castor seed annually from which around 600,000 tonnes oil is extracted, valued at around Rs 4,500 crore (90% of global output). Castor is a perennial crop but is grown as an annual crop for economic purpose. It is cultivated in the arid and semi- arid regions in the world. Unlike other plant-based oils, castor oil is not a vegetable oil and is largely used for various industrial applications in the chemical and oil industries. Lubricants, paints, engineering plastics like nylon, healthcare/personal care and electronics are some of its biggest end-uses.
India is the largest producer of castor seed in the world, followed by China and Brazil. Gujarat, Rajasthan, and Andhra Pradesh are three major castor-producing states in India. India’s share in the global production has been increasing from year to year. During the last decade, India’s share grew from nearly 62% in 2002–03 to 75% in 2012–13 to 80-85% now.
|April 1, 2017||Kunal Bothra||Amara Raja Batteries, BEML||The first stock which I am recommending at this hour is a buy on Amara Raja Batteries. We have seen that from March first week onwards, when the stock was trading at Rs 810-815 levels, post that we have seen a decent rally shaping up. In this processm it has formed a bullish triangular pattern.
The breakout of this triangular pattern is closer to 880-885 on spot levels and the stock seems to have gathered some decent momentum of late and is broken about this particular price pattern formation.
I believe that now the stock should start a decent sort of an uptrend. Traders could look at a target of at least Rs 925- 930 on Amara Raja Batteries, keep a stop loss of Rs 870 and go long.
The second stock is a buy on BEML. It is a very interesting chart. Over the last two-three months, we have seen a decent recovery shaping up for the stock. However, of late, it was consolidating in a Rs 45-50 band. With the price action on Friday, the stock should have broken this consolidation and should start its uptrend. The volumes also have increased significantly for the stock. So a buy on BEML is what I am recommending at current levels with the target of at least Rs 1440, keep a stop loss of Rs 1320 and go long.
|April 1, 2017||Sumeet Nagar||Avanti Feeds||Avanti Feeds is a company that a lot of people have had concerns about. There is fear about what can happen because of disease and the volumes can just plummet, the market can go down, the market share can go down -- without really digging deeper and understanding it. If you do a lot of work and try to understand that what happened in Thailand was a set of issues specific to that country and those kind of risks are very difficult to replicate in India. Here, you have a company which is very strong. There are two players with combined 80% plus market share and that means they do something specialised.
To be able to establish that, we have to go to a number of shrimp farms across the country, meet a lot of people, understand their advice, talk to people from Thailand and what happened there. You have to do a lot of research to find out why this investment is actually safer vis-a-vis people’s fears. If you honestly cannot answer the fact that we know something about this company or investment better than other people out there, then basically you are just camping because whenever you are buying somebody else is selling and that is a very good construct to have in mind to make sure that you really understand the business well and you understand it from a long term perspective as opposed to what is happening in the next one or two quarters.
|March 25, 2017||Prateek Agarwal||Apollo Tyres, Ashiana Housing, Ceat Tyres||Real estate is something that we are not so very focussed on while the policy environment has been getting better for real estate. The budget was helpful, the focus on low cost housing was very welcome and frankly if you look at Mumbai suburbs, very high end flats could now be actually termed as low cost housing given that 1100 square foot would seem like luxury even in Bombay suburbs. So real estate, in terms of policy, is clearly getting better.
As for tyre stocks, rubber prices had moved up sharply which caused stress on Q3 numbers. Maybe, it will cause some amount of stress on Q4 as well, but going forward the numbers should come back pretty strongly.
Also, tyres were perceived as a commodity business for a very long period of time, moving on the gyrations of the input prices. However, over time, tyre companies have been able to add value. Earlier if they were just giving the number, Rs 7000 per ton of rubber used now that same numbers maybe touching Rs 40000. That has happened because in terms of market space, market share has moved to two-wheelers and cars over trucks and that is a more value added part of the market.