Trading Profit & Capital Growth:

As per a market veteran, trading is for creating the capital and investment is for growing that capital. Without trading how will the capital grow and at what speed? Keep trading, keep earning and keep investing the trading profit to grow faster and multifold. But before that, the trader must acquire technical knowledge from an expert. Always trade with discipline and invest the trading profits only in growth-oriented stocks.

As per a market veteran, in March 2024, stock specific wild volatility will continue but that does not mean that the bear market has begun. This volatility is due to

1) March accounting year end expiry with transfer of huge profits and losses.

2) An important event in USA affecting markets on 18th March 2024.

3) In 97% cases, there will be margin closures from 11th March to 27th March. This happens every year but the market starts rising again in April.

As per astroview, some important turning dates for the month of March are 7, 11, 22 and 28.

Indiabulls Housing Finance is available at attractive valuations and may cross its 52-week high. Add.

• In our 11th Nov MTTs, Gujarat Pipavav recommended at Rs.135 touched new 52-week high of Rs.218.70 and Grauer Weil recommended at Rs.115 touched new 52-week high of Rs.205 during the week.
• In our 13th Jan MTTs, NSE SME Systango Technologies recommended at Rs.275 touched new high of Rs.408. Add.
• In our 10th Feb MTTs, Univastu India was recommended at Rs.134 touched Rs.152.25 and still looks very good. Buy
• In our 17th Feb MTTs, Indotech Transformers recommended at Rs.1030 touched Rs.1182, Rudra Global recommended at Rs.38.70 touched Rs.48 and BF Utilities recommended at Rs.701 touched new 52-week high of Rs.978.
• In our 24th Feb MTTs, National Plastic was recommended at Rs.72.33 touched Rs.88, Artefact Projects recommended at Rs.90.66 touched Rs.98, ABC India recommended at Rs.136 touched Rs.159, Competent Auto recommended at Rs.472 touched Rs.499 and Metro Global recommended at Rs.155 touched Rs.165 during the week.
• H.G. Infra’s WOS, H.G. Solar Projects Pvt. Ltd., bags huge order of Rs.772 cr. from East Central Railway. For Q3, it posted NP of Rs.205.48 cr. from Rs.6.14 cr. in Q2. For 9M, it recorded PAT of Rs.385.53 cr. from Rs.272.42 cr. YoY with an EPS of Rs.59. It has a RoCE of 25.4% and RoE of 29.4%. Buy for decent gains.
• BSE SME Brisk Technovision provides IT solutions to leading corporates. Its IPO in Jan 24 at Rs.156 and was subscribed 47.10 times yet it is available around its IPO price. It has a RoCE of 65.8% and RoE of 50.6%. Buy for hefty gains.
• Godavari Drugs’ Q3 PAT rose 82% to Rs.1.22 cr. from Rs.0.67 cr. For 9M, it posted PAT of Rs.2.89 cr. on sales of Rs.118 cr. with an EPS of Rs.3.83. Add for 30% gains. 
• Almost debt-free Alpa Labs manufacturers & exports ethical drugs, generic drugs, OTC & veterinary products and supplies to reputed pharma cos. For 9M, its net profit jumped 66% to Rs.13.24 cr. from Rs.7.99 cr. YoY on 139.21% higher sales of Rs.96.06 cr., fetching an EPS of Rs.6.31. It is available at an attractive PE of 12x. Buy for 30% gain.
• NSE SME Systango Technologies, H1 NP rose 100% to Rs.8 cr. from Rs.4 cr. YoY. Reputed HNIs Ashish Kacholia holds 4,52,800 shares and added 1,60,000 shares on Nov 2023. It is likely to add 5/6 new clients in Q4 and multiply its top-line by 5x in FY25. Add for decent gains.
• Debt-free Denis Chem Lab produces sterlite intravenous injectables. Its stock is available at attractive valuations with a dividend yield of 3%, M.Cap/sales ratio of just 0.55x. It notched 75% higher Q3 EPS of Rs. 2.31 from Rs.1.32 YoY. Buy for multi-bagger gains.
• Softsol India is into artificial intelligence, machine learning, big data analytics and cloud computing. Promoters hold 73.5% and HNIs hold 23% stake. It notched an EPS of Rs.8.25 in Q3 and is a re-rating candidate. Add.
• Rudra Global Infra hit a new 52-week high of Rs.49.30 on 2nd March with volumes. It manufactures TMT Bars and launched ‘Rudra Inframart’ a construction super market. For 9M, its PAT rose 44% to Rs.13.94 cr. while its sales grew 33%. It trades at a P/E ratio of just 23x. Add.
• Apollo Hospitals Group stock Indraprastha Medical Corporation’s 9M NP grew 58.98% YoY and trades at a P/E of 14.08x as against the industry average of 45.82x. Add for the long term.
• Logistics infra company, TransIndia Real Estate, has a land bank of over 500 acres in urban areas. Recent entry of Blackstone Group of investors is a big positive. Buy.
• In addition to its increasing order book, telecom and defence infra stock HFCL will get huge returns from its 8.19% stake in the new IPO of Exicom Tele Systems Ltd. which will list this week. Add for hefty gains.
• TRF, a TATA Group co., bags order worth Rs.350 cr. from Tata Steel for the coming year whereas its last full year turnover was Rs. 220 cr. It trades at a P/E of 10x. It has a mktcap of less than Rs.500 cr. Add.
• After being taken over, Megasoft has sold its IT business fully and has now ventured into the business of pharma and defence manufacturing. Ace investor, Ashish Chugh, has added it to his portfolio. With a mktcap of Rs.600 cr., this defence stock can turn out to be a multi-bagger. Add.
• Cupid’s promoter, Aditya Kumar Halwasiya, has acquired a huge stake in Tourism Finance Corp. from the open market and preferential allotment last week taking his stake to ~ 20%. Since Cupid rose from Rs.300 to Rs.2700, marketmen expect a repeat in TFCIL. Add.
• With PSU stocks on a roll having shot up 4-5x last year, keep an eye on New India Assurance which has significant chunks in all PSU cos. Add.
• Cambridge Technologies hits multi-year highs, which suggests something is cooking. It might be a possible takeover candidate. Keep it on your radar.
• ThinkInk Picturez expands globally with the launch of Think Star Entertainment Technology LLC in Dubai. Securing a production contract of Rs.45 cr., it has attracted investors like Bank of America, Securities Europe SA and Societe Generale Fund. Buy.
• Maharashtra Corp. acquires a land bank worth Rs.45 cr. close to the Sardar Vallabhbhai Patel stadium in Ahmedabad for a new real estate project, which could generate sales of Rs.120 cr Buy.
• Man Industries has big expansion plans on hand. It is debt-free and has extremely bullish prospects going ahead. Accumulate.
• Pilani Investments holds shares of Grasim, Ultratech and Century Textiles. All these companies have a bright future. Hence, it is likely to appreciate. Add.
• In spite of the current controversy about charges, hospital stocks are bound to do well. Narayana Hrudayalaya seems to be a top pick. Add.
• Automobiles are revving up and Maruti is the dominant player with pan-India distribution and super after sales services. Add.
• Coal India continues its production uptick. This cash rich and under-valued counter deserves a place in every portfolio. Add.
• L&T is getting into super Hi-Tech apart from its great capabilities in infra. It is not expensive even now. Add.
• NSE listed Vertoz Advertising is an ad-tech co. Past week’s corporate actions show new acquisitions overseas and its financials have improved over the last few quarters. Keep track.
• Kamdhenu Ventures in its investor concall stated its growth prospects and hopes to achieve its revenue of Rs. 1,000 cr. by FY28. It recently raised Rs.65.25 cr. via. preference capital from reputed QIBs, to bolster its paints business. Add for the long term.
• Univastu, a diverse construction co. with a market cap of Rs. 165 cr., focuses on civil construction projects. For Q3, it posted revenue of Rs.29.93 cr. vs. Rs.24.53 cr. QoQ and PAT of Rs. 2.49 cr. vs. Rs.1.90 cr. QoQ. Add.
• Aartech Solonics, a turnaround counter, with a Mcap of Rs. 166 cr., operates in the Defence & Power sectors, plans capex at its Mandideep and Parwanoo units. It has the highest-ever order book with potential for multibagger returns.
• Wockhardt, a global pharma and biotechnology co. ranks among the top 3 Indian generic cos. in the UK. It just completed a successful phase 3 study for Nafithromycin and aims to raise Rs.1,600 cr. through a QIP. With recent successes in new vaccines, it is poised for growth.
• SME BSE listed Hemant Surgical Industries manufactures, imports & exports medical disposables, surgical equipment & pharma products. Add for decent gains.
• Natco Pharma posted 128% higher 9M EPS of Rs.55.8, which may lead to FY24 EPS of Rs.70. Promoters hold 50%, MFs hold 5.2%, Insurance Cos. hold 6%, FIIs hold 13% and PCBs hold 2% stake. Buy for hefty gains.
• Canara Bank having 9588 branches, posted 44% higher 9M EPS of Rs.62.4, which may lead to FY24 EPS of Rs. A reasonable P/E of 8x could take its share price to Rs.680. It has announced a share split in the ratio of 1:5. Add.
• Satin Creditcare has an AUM of Rs.11,075 cr. a capital adequacy ratio of 28.7%. It posted 9M EPS of Rs.32, which may lead to FY24 EPS of Rs.45. Buy for 30% gains.
• Repco Home Finance posted 25% higher Q3 EPS of Rs.16.5 and 30% higher 9M EPS of Rs.48.4, which may lead to FY24 EPS of Rs.66 from Rs.35.4 in FY23. Buy for decent gains.
• Shriram Pistons made two acquisitions for Rs.300 cr. and posted 43% higher Q3 EPS of Rs.24.5 and 58% higher 9M EPS of Rs.73.3, which may lead to FY24 EPS of Rs.100 and cash EPS of Rs.125 in FY24. Buy for hefty gains.
• Meghmani Organics into crop protection, crop nutrition and pigments is undergoing Phase-I capex of Rs.540 cr. for expansion of pigments capacity. Buy.
• Karnataka Bank allotted 37,72,730 equity shares at a premium of Rs. 255.06/share to ICICI Lombard General Insurance Company for Rs.98 cr. It posted 9M EPS of Rs.30, which may lead to FY24 EPS of Rs.40. Buy for 25% gains.
• Coal India notched Q3 EPS of Rs.14.7 and 9M EPS of Rs.38.7, which may lead to FY24 EPS of Rs.55+. Buy for 20% gains.
• Chambal Fertilizers posted Q3 EPS of Rs.11 and 9M EPS of Rs.28.3, which may lead to FY24 EPS of Rs.35+. Buy for the long term.
• Salasar Techno bags fresh orders worth Rs.200 cr. for supply of solar structures. A big positive. Add.
• Coal India and BHEL sign a JV for a coal to chemicals business. This looks promising for both the companies. Buy.
• US FDA issues EIR for Alkem’s API manufacturing facility at Mandva. Buy.
• IRDAI registers PB Fintech (Policy bazaar Insurance) to act as a composite insurance broker. A big positive. Buy.
• Venus Pipes to foray into the fittings business at a capex of Rs.175 cr. to be funded by warrants and debts. Buy.
• NTPC arm signs a JV with the Maharashtra State Power Generation Co. for development of renewable energy parks in Maharashtra. A big positive. Buy.
• Reliance Capital to be delisted from the stock exchanges as per Hinduja's resolution plan. Sell immediately.
• Alankit enters into a Rs.23.7 cr. project with the School Education Department of Uttarakhand. Buy.
• Powermech bags orders worth Rs.396.3 cr. from the South East Central Railway for execution of civil construction and electrical works. Add.
• Jana SFB obtains RBI approval for re-appointment of Ajay Kanwal as MD & CEO for the next 3 years, effective March 2027.Add.
• Shakti Pumps receives Rs.84.3 cr. work order from Haryana Renewable Energy Department. Buy.

This is an extract from Money Times Talk, March 2nd 2024. 

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