Tower Talk – March 08 – 15, 2019

  1. Shriram Transport Finance intends to tap the overseas market in dollar-bond sales to meet its capex plans. Buy.
  2. Reliance Jio has bought majority stake in Haptik (an artificial intelligence firm) for ~Rs.700 crore. A positive for its parent company – Reliance Industries. Buy.
  3. JK Tyre & Industries has made a preferential allotment of Rs.200 crore to its promoters to part-finance its ongoing TBR (truck and bus radial tyres) capex. Buy for the long term.
  4. Lupin’s Pune facility has cleared the USFDA inspection without any observations. A positive for the company. Buy.
  5. Bharti Airtel has forayed into the fast-growing lucrative E-books segment. Its huge subscriber base will boost its earnings. Buy for the long term.
  6. Navin Flourine International is about to commence its new capacities, which may almost double its existing production. The stock has the potential to deliver about 40-50% returns within a year.
  7. Gujarat Gas has received an order from PNGRB (Petroleum & Natural Gas Regulatory Board) for setting up a natural gas distribution network in different areas of Punjab. A big positive for the company. Buy for the long term.
  8. Nirav Modi is expected to be deported to India shortly and the legal process to recover loans may become faster. It may be prudent to accumulate Punjab National Bank and State Bank of India.
  9. With the government’s focus on blending petrol with ethanol, Praj Industries is likely to benefit. Buy.
  10. L&T Hydrocarbon, a subsidiary of Larsen & Toubro, has received big contracts across various business segments. The management expects some more big ticket orders. Buy for the long term.
  11. Suven Life Sciences has obtained new product patents in Israel, Japan, New Zealand and Sri Lanka. An excellent buy.
  12. PSU oil marketing companies (OMCs) have weakened on the bourses on account of falling crude oil prices. A good opportunity to buy Indian Oil Corporation.
  13. Godrej Properties’ new luxury residential projects in Mumbai provide good earnings and revenue visibility for the next many quarters. Buy.
  14. Glenmark Pharmaceuticals may soon spin off its R&D business into a different entity, which will create value for its shareholders. Accumulate this undervalued stock in small quantities.
  15. The new GST rate slabs have come into force. A good time to buy Prestige Estates, DLF and Oberoi Realty.
  16. Kaveri Seed Co. plans to launch new varieties of hybrid seeds. With monsoon around the corner, its sales are likely to pick up. Buy.
  17. With the steel sector improving, Steel Authority of India is likely to benefit significantly. Accumulate.
  18. After starting a new casino in Sikkim, Delta Corp plans to venture into cruise line services. Its future looks bright. Buy.
  19. Aro Granite Industries is expected to post excellent results for FY19. Buy for the long term.
  20. Tata Power has signed a pact with Indraprasth Gas for setting up integrated roof top solar power projects and electric charging/battery swapping stations. It also received a Rs.1200 crore order from the Ministry of Defence for air surveillance radars. Buy.
  21. An Ahmedabad-based analyst recommends Goldiam International, ITL Industries, Conart Engineers and Jiya EcoProducts.