Money Times Talk

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Get the latest Indian stock / share market highlights, BSE/NSE stock news, business research reports & details - updated daily by Money Times.

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January 08, 2024

• ➢ As per a market veteran, the current craze for SME stocks is noticeable, but all SME are not worthy of investment. There is a concerning trend where investors overlook basic metrics like P/E, RoE and cash flows. It’s crucial to understand that valuation plays a significant role in investment decisions. As the market evolves, investors are likely to recognize the importance of evaluating fundamental aspects sooner rather than later. Strictly stay away from SME or main board shares with poor fundamentals. Since such shares are zooming with huge volumes, please remain cautious and trade/invest with a strict stop loss.
• ➢ Last week’s MTT recommendations, Simran Farms at Rs.173 touched Rs.215, Artefact Projects at Rs.71 hit Rs.95, Resonance at Rs.112 hit Rs.125, BDH at Rs.219 touched Rs.264 and Sagar Cements at Rs.254 hit Rs.304 with huge volumes. Book partial profits at every rise.
• ➢ Gujarat Toolroom acquires 6 hectares of government mines in Zambia and estimates revenue of Rs.700 cr. with a profit margin of 10-12%. A big positive. Add.
• ➢ Siyaram Recycling, founded in 2007, is attracting investor attention for its brass scrap separation and production of brass components, especially for sanitary installations. Buy.
• ➢ Analysts recommend NSE SME stock Trident Techlabs, for its tailored technology solutions in aerospace, defense, automotive, telecommunications, semiconductor and power industries. Buy.
• ➢ Sree Raylaseema Hypo, a chemical manufacturer with a diverse product range boasts of 10 MW power plant and 11.25 MW wind power, it is projected to achieve an EPS exceeding Rs 80 in FY24. Buy.
• ➢ Trigyn Technologies, appraised at CMMI Level 5 (v2.0) by QAI India, showcases its commitment to performance excellence and alignment with global standards. Buy for the long-term gain.
• ➢ Federal Bank posted 19% growth in total deposits and 18% in gross advances to Rs. 2,02,475 cr. for 9MFY24. Its 30% growth in H1FY24 EPS to Rs 8.4 could take FY24 EPS to Rs.18. Buy for 30% gain.
• ➢ Repco Home Finance posted 47% higher Q2 EPS of Rs.15.5 and a 39% higher H1 EPS of Rs. 31.7, which may lead to FY24 EPS of Rs. 68+ from Rs. 35.4 in FY23. Buy.
• ➢ Chamanlal Setia, a rice exporter, with a 23% higher Q1 EPS of Rs. 5.3 could lead to FY24 EPS of Rs.30 (forward P/E 7.1x, compared to the industry average of 42x). Buy for 30% gains.
• ➢ Cigniti, a global leader in independent quality engineering and software testing posted a 25% higher H1FY24 EPS of Rs. 33.2. This could take FY24 EPS to Rs. 75+ from Rs 61.3 in FY23. Buy for 30% gains.
• ➢ Nile, a leading manufacturer of Lead and Lead Alloys posted a 45% higher H1FY24 EPS of Rs.44.1, which may lead to FY24 EPS of 90+. A reasonable P/E of 12x may take the share to Rs. 1000. Add.