Month: December 2023

Archean Chemical Industries Ltd has a BUY rating on the stock with a target price of Rs 810/share, implying an upside of 33% from the CMP

Submitted by on December 24th, 2023

Archean Chemical Industries Ltd. (ACIL) offers multiple MOATS which are expected to translate into key growth drivers going forward as the company slowly ramp-up its Bromine Derivative capacity along with its traditional secured Salt business and soon-to-be-revived Sulphate of Potash business. We believe ACIL is well placed in the bromination space given i) Strong industry growth drivers; increased usage of Bromine in agrochem and pharma chemistries, ii) Forward integration into highvalue business with strong demand from the largest geographies in the world,and iii) Well-nurtured long-term relationship with customers. The stock currently trades at 10x FY25E EPS. We value the stock at 14x FY25E EPS and initiate coverage with a BUY rating on the stock with a target price of Rs 810/share, implying an upside of 33% from the CMP.

Download Pdf of research report on : Click here to Download

Image uploaded by :

Top stock recommendations of large-cap, blue chip & small-cap stocks for CY 24

Submitted by Suresh Talwar on December 23rd, 2023

Large caps to glide on along with midcaps and smallcaps

Indian equities are poised to enter CY24 on a buoyant note. As we enter election year, we present our prognosis for CY24 and reiterate our CY30 target of 50000 presented in CY23 edition.
Our prognosis is a culmination of triangulation model which projects Nifty CY24 target of 24700 while key support is placed at 18900. Sectoral leadership and our bottom up stock analysis indicate glaring resemblance with CY04-CY07 bull run.
Key themes:
✓ Historically, equity returns in General Election Year has been positive on nine out of eleven occasions (Median 17%)
✓ Empirically (since past four decades) Fourth year of a Decade has always been rewarding with Median 15% returns
✓ Large caps, which have been laggards, to catchup post couple of years underperformance
✓ Capital Goods & Infra, PSU, Metal, Energy turning to be leaders after decadal underperformance, while BFSI and IT would maintain their upward trajectory
✓ Technically, global market setups becomes more supportive as US and European indices are coming out of two years of hiatus

Download Pdf of research report on , : Click here to Download

Image uploaded by Suresh Talwar :

Tarsons Products can be a multibagger after new acquisition

Submitted by Jeevan Amar on December 22nd, 2023

Tarsons Products surges 8% on new acquisition; Stock Market LIVE Updates

Shares of the laboratory plastic ware producer rose over 8% today after the company announced that it will acquire two German medical distributors named- Nerbe R&D GmbH and Nerbe plus GmbH through its subsidiary. The estimated cost of the acquisition is €10 to €15 million, subject to change according to the closing adjustments.

Download Pdf of research report on : Not Available

Image uploaded by Jeevan Amar :

Tarsons Products can be a multibagger after new acquisition

Multibagger Rockingdeals Circular Economy hits upper circuit on robust results

Submitted by Jeevan Amar on December 22nd, 2023

Shares of Rockingdeals Circular Economy Ltd hit the upper circuit of 20% today due to robust results.

 

The IPO had opened 125 percent higher on debut on November 30 after its initial public offering of the SME was subscribed over 213 times.

The stock opened at Rs 300 on the NSE SME platform from its issue price of Rs 140 a share. At 10am, the stock was trading at Rs 315, up 125 percent from its issue price.

The SME IPO, which was open to bids from November 22 to 24, saw overwhelming subscription levels with 201.42 times buying in the retail category, 47.4 times in QIPs, and 459 times in NIIs.

The Rs 21-crore IPO was an entire fresh issue of 15 lakh shares. The company plans to use the net proceeds for working capital needs and brand positioning, marketing, and advertising.

Corporate Capitalventures Pvt Ltd managed the IPO, with Bigshare Services Pvt Ltd as the registrar and Ss Corporate Securities as the market maker for Rockingdeals Circular Economy IPO.

Established in 2005, Rockingdeals specialises in bulk trading of excess and open-boxed inventory, offering services to help companies efficiently dispose of surplus stock. Their seamless and transparent process benefits both sellers and buyers, creating a win-win scenario.

With over 18 categories of Stock Keeping Units (SKU), Rocking Deals deals with electrical appliances (Syska, Havells, LG, etc.), apparel & footwear (Zara, Nike, etc.), speakers (Boat, JBL, Gizmore), mobiles, accessories, and various other products. These items are sourced from e-commerce vendors like Snapdeal (Juscorp), Flipkart, Amazon affiliates, companies like GO Auto, Salora International, Zazz Technology Connect Private Limited, and dealers/distributors like Matrix Housewares, Raj Agency, Sudhi Enterprises, etc.

For FY23, the firm reported a net profit of Rs 1.54 crore against Rs 14.37 lakh a year ago. Revenue for the year stood at Rs 15.18 crore versus Rs 15.33 crore last year.

Download Pdf of research report on : Not Available

Image uploaded by Jeevan Amar :

Multibagger Rockingdeals Circular Economy hits upper circuit on robust results

Cochin Shipyard is up 4% due to new contract. Read research report

Submitted by Amar Shah on December 21st, 2023

Cochin Shipyard surges on new contract

🔹News: Cochin Shipyard has signed a contract worth ₹488.25 crore with the Ministry of Defence for the repair and maintenance of Indian naval ships.

🔹Impact: Shares of the state-owned shipyard are up by 4%.

Download Pdf of research report on : Not Available

Image uploaded by Amar Shah :

Cochin Shipyard is up 4% due to new contract. Read research report

Wardwizard Innovations Multibagger is up 5.4% due to MOU with BEEAH Group

Submitted by Nimesh on December 20th, 2023

Wardwizard Innovations signed an MoU with Sharjah (UAE) based BEEAH Group to manufacture electric vehicles. As part of strategic alliance, both companies will conduct feasibility studies for the production electric vehicle in the UAE.

🔹Impact: Shares of the electronic vehicle manufacturer are up by 5.4%.

Download Pdf of research report on : Not Available

Image uploaded by Nimesh :

Wardwizard Innovations Multibagger is up 5.4% due to MOU with BEEAH Group

Can Fin Homes is up 45% YoY. It is a buy for target price of Rs 908

Submitted by Mohan Kumar on December 20th, 2023

Fixing for governance; building for durability

CANF has embarked on a journey to strengthen its governance framework and add new pillars to drive its next leg of sustainable and profitable growth. CANF has historically been one of the most durable franchises delivering healthy growth (25% AUM CAGR during FY11-FY23) and steady earnings (25% earnings CAGR during the same period). We believe that the recent incidence of fraud at one of the branches was an outlier event with the necessary corrective actions in place to mitigate the operational risk. CANF’s recent investments to widen its sourcing channels are likely to augment its customer funnel, thereby adding more legs to balance sheet growth. We reiterate our BUY rating on CANF with RI-based TP of INR 908 (implying 2.2x Sep-25 ABVPS) and our top pick among HFCs.

▪ Reinforcing the governance framework: Mr Suresh Iyer, the new MD & CEO, has been focusing on three key aspects: further strengthening of core functions, tech transformation for driving throughput and diversifying sourcing channels to augment growth. We believe these measures are likely to address the operational risks (such as the recent fraud at one of the branches) while also offering new growth catalysts.

▪ Augmenting the customer funnel: CANF is adding new sourcing channels to reduce its dependence on DSA-sourced business, currently at 82% (FY19: 51%). The new sourcing channels include sourcing from builders (approved project finance), process debottlenecking to drive higher throughput from branches, and digital sourcing (yet to be implemented). While DSAs remain a low-cost sourcing channel (~40bps of pay-out), channel diversification is likely to ensure a larger customer funnel and a wider customer profile.

▪ Exercising upside levers to scale: With >75% of its net total assets qualifying as housing finance for individuals, CANF has significant room to scale its non-housing portfolio. CANF is gradually building up this non-housing portfolio through measures such as longer-tenor LAP. Further, incremental branch additions have been skewed towards non-southern states that offer larger deployment opportunities.

▪ Investments to drive near-term higher opex ratios: CANF has embarked on an investment phase with branch additions (~15-20 annually) and tech transformation (INR 2.5bn of total cost over seven years), which is likely to drive opex ratios higher from ~16% currently to ~18% in the near term. We opine that these investments are an absolute must, given tech investments by most peers and relatively muted branch additions in the recent past.

▪ Profitability, growth intact; valuation remains attractive: Despite a ~45% rally in the stock price since our initiation in Apr-23, we believe CANF is attractively valued for the potent combination of medium-term growth (17% CAGR over FY23-26E) and profitability (17-18% RoE) that the franchise is poised to deliver.

Download Pdf of research report on : Click here to Download

Image uploaded by Mohan Kumar :

Can Fin Homes is up 45% YoY. It is a buy for target price of Rs 908

Research Report on best PSU Banks to buy

Submitted by Shyam Sundar on December 19th, 2023

Earnings outlook steady; well poised for Re-rating 2.0 PSBs have delivered a strong performance since FY22, with the Nifty PSU Bank Index outperforming the Nifty-50/Bank Nifty by 87%/ 78%. We earlier resumed coverage on the entire PSB sector in CY21 enthused by their improving business/earnings outlook. We estimate top six PSBs under our coverage to report PAT of INR1.5t/INR1.7tn in FY25/FY26, while sector RoA/RoE improves to 1.2%/17.9% by FY26E. Several PSBs have raised capital from the market and have shored up their capitalization levels, which will enable healthy balance sheet growth, particularly as the capex cycle recovers after the general elections. We thus estimate ABV for our coverage PSBs to grow at a healthy 16-22% range over FY24-26. We believe that sustained and consistent performance on return ratios and a conducive macroenvironment can drive further re-rating of the sector. We introduce FY26E and rollforward target prices for our PSBs coverage universe. We thus revise our TP for SBI (INR800), BoB (INR280), INBK (INR525), UNBK (INR150), CBK (INR550), PNB (INR90). Top picks: SBIN, BOB and CBK.

Download Pdf of research report on : Click here to Download

Image uploaded by Shyam Sundar :

Dolly Khanna Portfolio sparkles with multibagger gains. Check her latest portfolio.

Submitted by Mohan Kumar on December 17th, 2023

Dolly Khanna’s present portfolio is as follows:

STOCK CMP (Rs) NOS of Shares VALUE % to portfolio
Chennai Petro 691.55 2,412,020 ₹1,668,032,431.00 41.65
KCP 40.9 1,432,638 ₹58,594,894.20 1.46
Monte Carlo Fashions 705.65 401,512 ₹283,326,942.80 7.07
Nitin Spinners 340 656,338 ₹223,154,920.00 5.57
Mangalore Chem 124.2 1,437,990 ₹178,598,358.00 4.46
Prakash Pipes 442 774,451 ₹342,307,342.00 8.55
Pondy Oxides 443.7 356,523 ₹158,189,255.10 3.95
Talbros Auto 305.8 193,215 ₹59,085,147.00 1.48
Control Print 944.35 193,582 ₹182,809,161.70 4.56
Tinna Rubber 598.8 221,932 ₹132,892,881.60 3.32
Deepak Spinners 257.25 118,743 ₹30,546,636.75 0.76
Simran Farms 170.05 54,496 ₹9,267,044.80 0.23
Prakash Industries 181.05 1,798,140 ₹325,553,247.00 8.13
Som Distilleries 290.3 873,429 ₹253,556,438.70 6.33
Salzer Electronics 416.1 177,599 ₹73,898,943.90 1.85
Rajshree Sugars 53.2 347,035 ₹18,462,262.00 0.46
National Oxygen 115.9 56,973 ₹6,603,170.70 0.16
Total ₹4,004,879,077.25 100.00

At least 6 stocks owned by Dolly Khanna, whose portfolio is managed by her husband Rajiv Khanna, have given multibagger returns inching up to 228% in 2023.

Data available till the end of the September quarter on ACE Equity showed that Khanna owned 18 stocks in her portfolio out of which Chennai Petroleum, Talbros Automotive, Prakash Pipes, Tinna Rubber and Control Print have given multibagger returns this year. We have excluded stocks that were not owned by her.

Prakash Industries has also given multibagger returns in the last one year but it is not considered in this list as the stock was not in her portfolio in December 2022.

Chennai Petroleum Corporation

Chennai Petroleum owns one of the largest standalone refineries in south India with a capacity of 10.5 mtpa. Khanna owned 1.62% stake in the company, the stock of which has rallied around 228% this year.

“The stock is highly sensitive to GRMs: a $1/bbl change in the GRM alters EPS by 43.2%. We retain our Buy rating with a 12-mth TP of Rs775, valuing the stock at 4.5x FY25e EV/EBITDA,” Anand Rathi said.

Talbros Automotive

Khanna’s stake in Talbros stood at 1.57% at the end of quarter ended September 30 versus 1.50% at the end of

the June ended quarter, according to the public shareholding data available on the BSE.

Market maven Vijay Kedia also owns 1.22% stake in the company, the shares of which have rallied around 173% in 2023.

Prakash Pipes

The smallcap with a market capitalisation of just around Rs 1,000 crore has also rallied around 171% this year. Khanna owned around 3.24% stake in the company.

Tinna Rubber And Infrastructure

Tinna Rubber is another smallcap in Khanna’s portfolio that has more than doubled in the last one year. The ace investor owned 1.3% stake in the company at the end of Q2.

Control Print

Shares of smallcap Control Print have rallied around 130% in the last one year. Khanna’s ownership stood at 1.21%.

Download Pdf of research report on : Not Available

Image uploaded by Mohan Kumar :

Dolly Khanna Portfolio sparkles with multibagger gains. Check her latest portfolio.

Top 3 Picks for 2024 from the realty sector by JMFICS

Submitted by Amar Shah on December 14th, 2023

Investment Theme for 2024 – Realty

As shared in our previous reports, Realty Index has given a decadal breakout – 14 years to be precise which means next 12 -24 months could be dominated by this sector. Realty Index can potentially double from current level of 770 in the next 2 years. Our Target is 1500.

Largecaps have already shown a big move led by DLF (our Diwali Pick) but we feel now is the time for the Mid and Small Caps to join the party.

Here are our Top 3 Picks from the space:

1. IBREALEST (CMP 87)
2. RUSTOMJEE (CMP 605)
3. DBREALTY (201)

Targets can be anywhere in the 2x to 2.5x i.e. a possible upside for more than 100% in next 2 years.

2023 belonged to PSE’s while 2024 can very much he dominated by Real Estate stocks. It will be a straight upmove so keep buying on dips.

Stay Bullish, Stay Invested 👍🏻

Regards,
Rahul Sharma
JM Financial Services Ltd.

Download Pdf of research report on : Not Available

Image uploaded by Amar Shah :