07/11/2021
Guj State Petronet continues to post good earnings. The Q2 EPS of Rs. 5.81 v/s Rs. 4.81 YoY and the rising gas prices augur well for it. Add.
Naveen Jindal led Jindal Steel & Power declared a consolidated Q2NP of Rs. 2584 cr. v/s Rs. 857 cr. YoY. To control rising input costs, the co. is also contemplating to diversifying its coking coal procurement. Buy on declines.
Rajapalayam Mills is undergoing a Rs 330 cr. expansion. This Ramco Cement group textile co. makes a wide range of yarns and holds stake in group cos. It garnered 146% higher Q2 EPS of Rs 113 and 198% higher H1FY22 EPS of Rs 155, which could take FY22 EPS to Rs 260+. A reasonable P/E of 10x could take its share price to Rs 2600 in the medium term. Add.
LG Balakrishnan & Bros, the No.1 OEM supplier of 2-wheeler Drive Chains with 70% market share and the largest exporter to USA has posted 189% higher Q2 EPS of Rs 24.8 and 428% higher H1FY22 EPS of Rs 35.3, which could take the FY22 EPS to Rs 70 on the robust prospects of the auto sector. The share may cross the Rs 1000 mark.
Voith Paper Fabrics, a 74% German MNC, has notched 80% higher EPS of Rs18 in Q1FY22 against EPS of Rs 44 in FY21. With 30% capacity expansion, it is expected to post FY22 EPS of Rs 70. Buy for 30% gain.
MK Exim (India) in multiple domains with manufacturing facilities for fabrics, readymade garments and jewellery has notched 257% higher Q1 EPS of Rs 2.7 against Rs 10.6 in FY21. This could lead to an EPS of Rs 14 in FY22 given the fruits of expansion. The share may cross the Rs 140 mark.
Cash-rich Kalyani Steels manufacturing components for commercial vehicles, two-wheelers, diesel engines, bearings, tractors, turbines, defence and railways has notched 37% higher Q2 EPS of Rs 14.2 and 144% higher H1FY22 EPS of Rs 30.2, which may lead to FY22 EPS of Rs 65+. The share can touch the Rs 650 mark.
Ajanta Soya manufacturing of Vanaspati and cooking oils with bakery application products like biscuits, puffs, pastries etc. has posted 1142% higher Q1 EPS of Rs 5.4, which could take FY22 EPS to Rs 24 against Rs 15.6 in FY21. A reasonable P/E of 8.5x can take its share price to Rs 204 going ahead. Buy.
DCM Nouvelle, from the DCM Group commenced yarn spinning operations in 1991 at Hisar in Haryana. It notched over 10500% higher Q2 EPS of Rs 22.2 and H1FY22 EPS of Rs 37.8, which could take FY22 EPS to Rs 70+. It may turn debt-free in FY22. The share is poised to double. Buy.
Nahar Industrial Enterprises, a vertically-integrated textile manufacturer also having a sugar unit with 2500 TCD has posted Q1FY22 EPS of Rs 8.7, which would lead to FY22 EPS of about Rs 27. The share is expected to double from the current level. Buy.
Dhunseri Ventures, which is setting up a 45,000 TPA polyester packaging plant for Rs 400 cr., has notched Q1 consolidated EPS of Rs 27.7, which could lead to FY22 EPS of Rs 100+ against FY21 consolidated EPS of Rs 66.3. This share can prove to be a multi-bagger. Buy.
Debt-free Seshasayee Paper, which is undergoing capex, has notched 48% higher Q2 EPS of Rs 4.6 and 25% higher H1FY 22 EPS of Rs 7.9, which is expected to clock FY22 EPS of Rs 22 against Rs 17.7 in FY21. The share may cross the Rs 220 mark.
Rubfila International is the only manufacture of talcum coated and silicon coated rubber threads. It declared 142% higher Q1FY22 NP of Rs.11.53 cr. v/s Rs.4.76 cr. YoY. The share has corrected to Rs.100 from Rs. 124 and is an attractive investment. Technically, if it crosses Rs.124, it can rise to Rs.150+. Its Q2 result is on 12th Nov. and expected to be good.
Aries Agro has huge reserve of Rs.198 cr. against its small equity of Rs.13 cr. Reputed market veteran Dolly Khanna holds 1.38% stake. Against book value of Rs.162, the share is available at an attractive valuation of around Rs.139 at PE of just 10x. Its Q2 result is on 12th November.
