27/10/2018
🏦 *TOWER TALK* 🏦
_October 29 - Nov 04, 2018_
✍ *Asian Paints* seems to be losing its sheen. Its Q2 PAT fell around 15%. Stay away from this counter till the market stabilises.
✍ *HDFC Bank*, which reported 21% higher PAT for Q2 at Rs.5005.73 crore, is reportedly faring well in the current quarter as well. Buy.
✍ *Persistent Systems* has reported a Rs.43 crore exposure to the IL&FS group. Its Q2 results also failed to cheer investors. Stay away from this counter.
✍ *Oberoi Realty’s* Q2 consolidated PAT jumped over 2x on the back of higher bookings and projects. Buy for the long term.
✍ *Hindustan Zinc* reported 29% lower PAT for Q2 on account of higher input cost and lower revenue. Investors may, however, hold the stock in view of the special dividend of Rs.20/share.
✍ There is no stopping *Alembic Pharmaceuticals,* which reported 64% higher PAT for Q2 due to a one-time supply shortage in the US markets. The gains are likely to continue to Q3 as well. Hold.
✍ *Jubilant Lifesciences* reported 67% higher PAT for Q2, mainly on account of robust sales from the pharma segment. Its Q3 is likely to be equally good. Buy.
✍ *Inox Leisure*, which operates around 536 screens in 66 cities across 19 states, reported flat to positive results for Q2. Hold.
✍ *Bajaj Finance* reported robust numbers for Q2 with 54% higher PAT. Buy.
✍ *Zee Entertainment Enterprises* has secured a US patent for its technology platform in the home entertainment segment. A big positive for the company. Buy.
✍ *PNB Housing Finance* has raised Rs.1775 crore for expanding its business. Its commercial papers (CPs) were fully subscribed, which testifies its inherent strength to meet its obligations. Accumulate.
✍ *Havells India* is focused on introducing new consumer electronic products and improving its distribution network. Buy for the long-term.
✍ Value buying is gradually emerging in good quality housing finance company (HFC) stocks. *Buy IndiaBulls Housing Finance* immediately for stellar gains.
✍ *TVS Motor Company* is geared up for growth. The stock looks good for the long-term in spite of stagnant profits.
✍ *HCL Technologies* beat street estimates with 15% higher PAT for Q2. The management expects 11% higher revenue for FY19 and its bottom-line will also improve. Buy.
✍ The government is focused on enhancing crop production using drip irrigation systems. Buy *Jain Irrigation Systems* for good returns.
✍ All rating agencies have re-affirmed their AAA rating for *Dewan Housing Finance Corporation,* which seems to have been overlooked by investors. The current correction phase offers an excellent opportunity to enter.
✍ With decent earnings visibility, fertiliser majors *Gujarat State Fertilizers & Chemicals and Deepak Fertilisers & Petrochemicals Corporation* look good. Buy.
✍ Contrarian buying and going against the tide fetches good returns sometimes. It may be prudent to buy *Apex Frozen Foods, Waterbase and Avanti Feeds* for an investment period of two years.
✍ *National Aluminium Company* invites investor attention. An imminent buy-back coupled with higher profits for FY19 augurs well for the company. Buy immediately.
✍ IT major *Larsen & Toubro Infotech* reported 47% higher PAT for Q2 on account of higher growth in its digital services segment. The management is optimistic about the company’s future. Buy for the long-term.
✍ *Mahindra & Mahindra Financial Services* reported a two-fold increase in Q2 PAT. The current meltdown in the market could not dent its share price, which shows its inherent strength. Buy.
✍ *Kriti Nutrients*, which reported 40% higher PAT for Q2FY19 and 66% higher PAT for H1FY19, is likely to notch an EPS of over Rs.4.5 for FY19. A reasonable P/E of 10x will take its share price to Rs.45 in the medium-term.
✍ _An Ahmedabad-based analyst recommends *Acknit Industries, IOL Chemicals & Pharmaceuticals, Shilp Gravures and VTM*_
