*TOWER TALK* 🏦 _August 27 - September 02, 2018_

*TOWER TALK* 🏦
_August 27 - September 02, 2018_

🙂 Britannia Industries intends to split its share from Rs.2 paid-up to Re.1 in order to increase liquidity in the counter while making it more affordable to small retail investors. The company has huge expansion plans and is still an excellent buy.

🙂 Atlantia SpA, Cube Highways and Caisse de depot et placement du Quebec (CDPQ) are in separate discussions to
acquire 35-40% stake in Sadbhav Infrastructure Project Ltd (SIPL). Buy Sadbhav Engineering, which holds 70% stake in SIPL.

🙂 The government has asked Oil & Natural Gas Corporation to list its wholly-owned subsidiary - ONGC Videsh Ltd (OVL) on stock exchanges and transfer the proceeds in the form of a special dividend. Buy ONGC for good returns in the next few months.

🙁 The US administration has slapped heavy anti-dumping duties on Indian metal pipes. Off-load Jindal Saw and Welspun Corp as they are most likely to suffer.

🙂 Prataap Snacks intends to buy 80% stake in Avadh Snacks in order to consolidate its position in the market. Buy.

🙂 Force Motors may acquire Man Trucks’ Pithampur facility. A big positive for the company. Also, this stock is yet to participate in the on-going market rally.

🙂 V-Mart Retail has chalked out plans to add 35 stores in this fiscal. Buy for the long-term.

🙂 Aluminium prices are on the rise. National Aluminium Company (NALCO) has the potential to rise by 50% within a year.

🙂 Cement maker Prism Johnson has got on lease a limestone mine for captive use for 50 years. A positive for the company. Buy.

🙂 Indian coal is expected to become costlier due to rising international prices and shortage in the country. Buy Coal India.

🙂 Reports suggest that truck and tractor sales have recorded higher volumes. Mahindra & Mahindra and Escorts may benefit significantly in this booming market. Buy for the long-term.

🙂 TVS Motor Company intends to boost its sales by targeting a volume of 2 lakh units of bikes this year. A decent buy.

🙁 The debt burden of IL&FS Transportation Networks is going beyond control and auditors have red-flagged related risks. Exit immediately.

🙂 Bandhan Bank joins the fray to acquire a controlling stake in PNB Housing Finance. A tug-of-war is quite likely to take the latter’s share price higher.

🙂 Simplex Infrastructures, which is in a sweet spot due to healthy traction of orders, expects 40% jump in profitability in the next 2-3 years. Buy for the long-term.

🙁 Hit by financial crisis, Hindustan Construction Company has decided to cut 10% of its Lavasa staff. It may be prudent to stay away from this counter for some time until the dust settles.

🙂 Emami is eyeing acquisitions in the international markets and the management is confident of its actions. Buy for the long-term.

🙂 The affordable housing incentives make housing finance companies such as Dewan Housing Finance Corporation (DHFL) and Indiabulls Housing Finance look attractive. Both the stocks are likely to continue their upward march. Accumulate.

🙂 Larsen & Toubro plans to utilise Rs.9000 crore of its surplus cash to buy back its own shares at Rs.1500/share. Since the offer is lucrative and its working is strong, investors may offer their holding to take advantage of the market swings and enter again when the markets cool down.

🙂 TTK Prestige, which trades at high valuations, is still being tipped as a good buy on the back of growing rural income. Accumulate in small lots for the long-term.

🙂 Cosmo Films has launched a cast polypropylene (CPP) metalized film with high metal bond strength. This innovation augurs well for the company. Buy.

🙂 Astrazeneca Pharma has received Import and Market permission from the Drugs Controller General of India for its Olaparib tablets, used to treat cancer. A positive for the company.

🙂 An Ahmedabad based analyst recommends ASM Technologies, Alkali Metals, Arihant Capital Markets, Cineline India, IOL Chemicals & Pharmaceuticals, Kriti Industries, Lahoti Overseas, Nelcast and Savera Industries.
From his last week’s recommendations, IOL Chemicals & Pharmaceuticals jumped from Rs.112.2 to Rs.132.1; ASM
Technologies jumped from Rs.110.7 to Rs.118.95; Makers Laboratories jumped from Rs.80.10 to Rs.85.95; and Haldyn Glass jumped from Rs.35.35 to Rs.38.50 in just 1 week!