22nd Feb 2019 | 12:04 PM IST

Free Share Market Tips Today: Stop & Read Before You Invest In Stocks

Various popular stock market news portals and TV channels discuss trending stocks and provide free share market tips based on technical charts and often without in-depth research. Our research desk analyses these trending stock market tips and provides their 360-degree analysis in a single place so you can avoid making wrong decisions with your hard earned money. Here are the share market tips for holding duration of around six months.

Disclaimer: Stocks and opinions below are for informational purposes and shouldn't be taken as a final advice from Niveza India. You shouldn't rely on this free advice solely and do your own research to arrive at the final conclusions. Our final stock recommendations are sent via SMS and Email to paid subscribers of Our Premium Products.

Share Market Tips For February 2019: 4th Week

Timken (NSE: TIMKEN) (Share Price: Rs.541.95):Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Fairly Valued at TTM P/E 33.81x.

Reasons to consider: Timken India (TIL) reported strong Q3FY19 numbers. TIL is now reporting merged entity numbers, i.e. Timken + (erstwhile) ABC Bearings.TIL has executed capex for railway bearings and tapered railway bearings at a cost of Rs.125 crore and Rs. 64 crore, respectively. Both capacities are now operational. In the railway segment, TIL expects new opportunities to open up in the ‘passenger coach’ segment.

Drivers: Indian Railways is planning to outsource ‘maintenance of bearings’ for existing wagons/locomotives to large OEMs. TIL being a frontrunner in this space, intends to capitalise on this as well.

Financial: On the financial front the revenues came in at Rs.384.9 crore, up 38.1% YoY.Gross margins were at 45.6% vs. 36.9% YoY. EBITDA margins were at 14.4% vs. 7.4 YoY. Gross margins, EBITDA margins were lower in Q3FY18 due to a change in product mix and high input prices during the quarter.Accordingly, absolute EBITDA and PAT grew 168.1% and 188.2% to Rs. 55.6 crore and Rs. 26.4 crore, respectively.

Bharat Forge (NSE: BHARATFORG) (Share Price: Rs.479): Potential Buy

Valuation: Fairly Valued with TTM P/E 24.97x

Reasons to consider: The management highlighted completion of two greenfield facilities in India that have the potential to achieve | 1000 crore of sales in next three years. BFL continues to focus on new technology and is well equipped to adapt to changing industry dynamics (mainly lighter vehicles) due to stringent emission control norms, EV space, usage of aluminium in PV and upcoming defence & aerospace opportunity.

Drivers: The company has a strong order backlog with class 8 trucks production expected at ~335,000 units in CY19E over ~325,000 units in CY18. This will ensure double digit topline growth will sustain, going forward.

Financial: On the financial front, the revenue for the quarter Q3Fy19 has jumped 21.7% to Rs.1692.5cr. It has reported a healthy profit of 35.9% to Rs.309.8cr from Rs 228 crore in same period last year.Domestic revenue in Q3FY19 grew by 17 percent YoY to Rs 673.9 crore and exports increased by 25 percent to Rs 975.5 crore.

JM Financials (NSE: JMFINANCIL) (Share Price: Rs.74.45): Potential Buy

Valuation: Attractive with TTM P/E 9.97x.

Reasons to consider: The company has entered into financing of affordable housing segment and also looking at having exposure in retail business. With post-money equity valuation of upto Rs. 7,175 crore for its NBFC subsidiary JMFCSL, JM Financial (Rs. 225 crore) along with external investor (Rs. 650 crore) will infuse Rs. 875 crore. This may lead to increase in the net worth of JMFCSL by 50 per cent.

Drivers: As banks are diminishing in Capital adequacy ratio and ability to give loan at lower rate, refinancing also offer a good opportunity for the company and will act as a major driver.

Financial: On the financial front, looking at the recently concluded quarter Q2FY19, the total consolidated revenue came in at Rs. 975.70 crore, showing 27 per cent YoY jump. The net profit after tax and before minority interest stood at Rs. 240.27 crore, posting 14 per cent YoY jump. Gross NPA and Net NPA stood at 0.5 per cent and 0.4 per cent respectively as of September 30, 2018 compared to 0.6 per cent and 0.5 per cent respectively as of June 30, 2018. The total loan book stood at Rs. 17108 crore as of Q2FY19 as against Rs. 16442 crore as of Q1FY19.

Ashok Leyland (NSE: ASHOKLEY) (Share Price: Rs.79.30) (Share Market tips): Avoid

Valuation: Undervalued with TTM P/E 12.52x.

Reasons to avoid: The revenue has declined due to reversal in the MHCV sales cycle.The domestic MHCV industry volumes fell 11% in Nov’18-Jan’19, compared with a 22% increase in YTD FY19. This decrease was attributed to surplus capacity with fleet operators, deferment of purchases during elections, increasing cost of ownership, and a high base.Ashok Leyland has lost its share from 34.2% in FY18 to 32.5% in FY19 YTD.

Financial: On the financial front the revenue for the quarter Q3Fy19 has drastically declined by 15.26% YoY to Rs.6245.21cr. Its net profit has declined by 21.44% to Rs.381 cr YoY. Operating profit margins for Q3FY19 contracted 140 bps y-o-y to 10.3%, pushing down the Ebitda (earnings before interest, tax, depreciation and amortisation) by 22.5% y-o-y to Rs.650 crore.

Share Market Tips For February 2019: 3rd Week

ACE (NSE: ACE) (Share Price: Rs.75.30): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Undervalued with TTM P/E 13.28x

Reasons to consider: ACE, a market leader in the ‘pick & carry’ cranes segment (>60% market share) currently enjoys a demand tailwind. Introduction of newer value added products is expected to boost topline while increasing utilisation levels will provide operating leverage benefits to aid ACE’s bottomline.

Drivers: Robust sales of ‘pick and carry’ cranes with launch of newer product, whereas boost in tractor sales will drive its margin further.

Financial: On the financial front the revenue for the quarter grew ~30% YoY to Rs.362.6 crore mainly driven by robust growth in cranes & tractors i.e. agri equipment segment,EBITDA margin fell ~250 bps YoY to 7.2% largely due to impact of higher steel prices (COGS, up ~460 bps YoY), offset by operational efficiencies due to incremental demand growth. EBITDA was at Rs. 26 crore, down 4.1% YoY. PAT de-grew 9.4% YoY to Rs.14.9 crore.

Tata Steel (NSE: TATASTEEL) (Share Price: Rs.465.80): Avoid

Valuation: Undervalued with TTM P/E 3.22x

Reasons to avoid: TATA has highly profitable operations in India, but its capital allocation and the track record of turning around acquired assets have been poor. Both Bhushan Steel and Usha Martin’s steel business acquisition has been expensive, which will drag earnings for years.Recent loss of iron ore production at Vale post breach of tailing dam has pushed up iron ore and scrap by 15-20%, which will eventually move steel prices higher on the slightest recovery in steel demand and can drive up the stock for some time, but it is unlikely to be sustainable. Hence we urge investors to avoid the particular scrip.

Financial: On the financial front the revenue for the quarter Q3Fy19 grew by 24.5% yoy to Rs41,220cr,EBITDA stood at Rs6,734cr, up 16.4% yoy.EBIDTA margin fell by 115bps yoy to 16.3%. Adjusted Net Profit stood at Rs1,714cr .Net debt at the end of Q3FY19 stood at Rs1.01 lakh cr with cash and current investments at Rs8,549cr.

Cochin shipyard LTD (NSE: COCHINSHIP) (Share Price: Rs.342.05): Potential Buy

Valuation: Undervalued with TTM P/E 9.50x

Reasons to consider: CSL has a healthy order book of Rs. 1607 crore plus L1 status for ASW vessels (Rs. 5392 crore). It is also likely to receive order for phase III of IAC,which is likely to be ~Rs. 10,270 crore (Rs. 3000 crore as fixed price contract and Rs. 7270 crore as cost-plus contract). This takes the total order backlog to Rs. 17,569 crore (adding ship repair orders of ~Rs.300 crore).

Drivers: CSL has planned a huge capex of ~Rs.3000 crore over FY18-21E (Rs. 2768 crore for the new larger size dry dock and repair facility, Rs.100 crore for Hooghly Cochin Shipyard and Rs.150 crore for developing docks at Mumbai, this initiative will help to drive the stock further.

Financial: On the financial front, revenue for the quarter Q3FY19 rose strong by 16.5% YoY to Rs.716.4 crore. Shipbuilding revenues grew 35.4% YoY while ship repair revenues de-grew 20.7% YoY. We expected revenue of Rs.671.5 crore for the quarter EBITDA margins came in at 22.1% vs. 22.3% YoY. Gross margins declined 190 bps YoY due to higher contribution from the shipbuilding segment. Employee expenses grew only 6.9% YoY. Absolute EBITDA grew 15.5%YoY to Rs.158.5 crore Other income declined 2.5% YoY to Rs.49.7 crore. Accordingly, PAT grew 14% YoY to Rs.147.6 crore

Apollo Hospitals (NSE: APOLLOHOSP) (Share Price: Rs.1119.15): Potential Buy

Valuation: Fairly valued with TTM P/E 54.78x

Reasons to consider: The company is expected to benefit from the capex (addition of ~2,500 beds, 30% of its current capacity) it completed over FY14-17. While 11 new hospitals are yet to breakeven, its existing hospitals enjoy RoCE of 21.6%, which will increase with improving efficiency.

Drivers: Positive industry macros and maturing hospital profile will act as a major driver.

Financial: On the financial front, the revenue for the quarter Q2Fy19 grew by 15.3% yoy to Rs2,090cr due to double digit growth in the hospital and pharmacy revenues. EBITDA grew by 16.6% yoy to Rs257.8cr in Q2FY19 vs. Rs221.1cr in Q2FY18. EBITDA margins stood at 12.3% in Q2FY19 vs. 12.2% in Q2FY18 and 11.9% in Q1FY19. This was due to the margin improvement in both hospital and pharmacy segments. PAT grew by 11.4% yoy to Rs79cr in Q2FY19 vs. Rs70.9cr in Q2FY18

Vodafone Idea Ltd: (NSE:IDEA) (Share Price: Rs.29.90): Avoid

Valuation: Stock is trading at a TTM EPS of Rs.-12.23

Reasons to avoid: Muted revenue performance and network opex were the key reasons for the subdued performance.Competitive intensity is expected to remain high, Idea and Vodafone are more vulnerable to lose subscriber base during merger integration.

Financial: Vodafone Idea on reported a consolidated net loss of Rs 5,004.60 crore for the third quarter ended December 31, 2018.As on December 31, 2018, Gross debt stood at Rs 1,23,660 crore, including deferred spectrum payment obligations due to the Government of Rs. 91,480 crore. Cash and cash equivalents were Rs 8,900 crore, resulting in net debt of Rs 1,14,760 crore.

Share Market Tips For February 2019: 2nd Week

Bayer cropscience ltd. (NSE: BAYERCROP) (Share Price: Rs.4248.95): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Over valued with TTM P/E 48.30x.

Reasons to consider: Bayer CropScience recorded 29% yoy revenue growth to Rs6.2bn in Q3FY19 driven by strong performance from rice, fruits and the vegetables segments. Bayer’s recently announced merger with Monsanto India will lead to product portfolio expansion. Management remains confident on positive growth in FY20E driven by product innovations.

Drivers: Better product mix and merger may add speed and efficiency and will drive the stock further.

Financial: On the financial front the revenue for the quarter Q3FY19 has ballooned by 29.5 per cent yoy to Rs.621cr as compared to the same quarter of the previous corresponding year.The EBITDA for the quarter stood at Rs46.6cr as against Rs22.6cr in Q3FY18, an increase of 106.2%. EBITDA margin contracted significantly by ~279bps yoy to 7.5% in Q3FY19. The net profit after tax for the company came in at Rs27.5cr in Q3FY19, up 157% yoy

SRF LTD (BSE: SRF) (Share Price: Rs.2227.95): Potential Buy

Valuation: Fairly valued with TTM P/E 22.28x

Reasons to consider: Agro-speciality chemicals reported solid growth on a yoy basis, helped by new product additions and improved demand from key global agro innovators. Management is optimistic on better performance from the speciality chemical segment in the coming quarters along with margin expansion led by an improving global agro-chemical market. As a result, management continues to maintain ~40% yoy growth visibility in the Agro-speciality chemicals segment for FY19.

Drivers: Growth in chemical segment with addition capex of Rs.2.2bn backed with spurt in packaged film business will drive the stock further.

Financial: On the financial front, the revenue for the quarter Q3FY19 has substantially increased by 40.6% yoy to Rs.1964.04 crore as compared to the same quarter of the previous corresponding year.The operating profit for the quarter stood at Rs331cr, up 42.9% yoy. The EBITDA margin (excluding forex impact) for the quarter expanded ~27bps yoy to 16.9% in Q3FY19.The net profit for the quarter stood at Rs165.71cr, up 26.3% yoy.

NBCC (NSE: NBCC ) (Share Price: Rs.54.35): Potential Buy

Valuation: Fairly Valued with TTM P/E 26.45x

Reasons to consider: Till September ended quarter the company has bagged orders worth almost Rs. 10,000 crore, this resulted into overall order book of Rs. 80,000 crore which gives strong revenue visibility for the next 4-5 years. Besides, it has maintained its order inflows guidance of Rs. 25,000 crore for FY19. The government has announced modernization of 400 railway stations with an investment outlay of Rs. 1 lakh crores. NBCC’s management has retained its revenue guidance for FY19E at 30–35 per cent.

Drivers: The company has obtained approval from the supreme court to start the construction of two redevelopment projects Netaji Nagar and Sarojini Nagar. The management indicated that construction work for these projects would resume from the first month of 2019.

Financial: During Q2FY19, the company’s standalone net sales surged almost 36.6 per cent to Rs. 1,541 crore from corresponding quarter of previous fiscal. However, EBITDA for the quarter declined almost 30 per cent to Rs. 59.11 crore from corresponding quarter of previous year. This can be attributed to change in accounting standard which resulted into decline in EBIT margin of PMC segment. The adoption of new accounting standards resulted into change in accounting treatment of advance payment of PMC margins. But higher other income led 16 per cent yoy growth in net profit to Rs. 85.96 crore.

BHEL (NSE: BHEL) (Share Price: Rs.63): Avoid

Valuation: Undervalued with TTM P/E 21.85

Reasons to avoid: Sharp decline in gross margin as well as power segment (contributes 78% to sales), registered muted growth of 3% YoY,Order inflow for the quarter stood at INR77b (-36% YoY) and we build in order inflow of INR340b for FY19. 9MFY19 order inflow stood at INR172b, rising long term receivables is a key concern to avoid the stock.

Financial: On the financial front the revenue for the quarter Q3fy19 has marginally increased by 10.1 per cent to Rs.7336 cr, as compared to the same quarter of the previous year. EBITDA stood at Rs219cr, down 17.5% yoy , EBIDTA margin fell 100bps yoy to 3%. Net profit in the quarter ended December 2018 stood at Rs192cr.

Share Market Tips For February 2019:1st Week

Yes Bank (NSE: YESBANK) (Share Price: Rs. 185.3): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Fairly valued at TTM P/E of 10.47x

Reasons to consider: The company’s loan book is likely to grow ~30 per cent in FY19, while risk weighted assets growth would be slower than loan growth. Current focus within retail loans was on building a quality loan portfolio and, hence, yields are low. As the book grows, yields would increase (after FY20), when the bank starts taking-on additional risk.

Drivers: Better capital adequacy and lowering slippages are expected to put yes bank back to top in best asset quality class. Recently the stock has corrected heavily. The management succession plan is yet to be finalised and settled. Thus, at current valuation there is a good scope for value creation

Financial: On financial front, NII for Q3FY19 stood at Rs. 2666.41 crore. The NII rose by 41 per cent. The total income during this period stood at Rs. 8849.81 crore as compared to Rs. 6492.56 crore for same period last fiscal. Further gross slipages stood at Rs. 2297 crore. The IL&FS exposure was seen at Rs. 2530 crore which is the reason to see increase in NPAs. The provision coverage ratio was noted at 44.44 per cent. The net profit after tax noted at Rs. 1001.85 crore. The total loan book stood at Rs. 244000 crore which grew by 42 per cent YoY. The CASA ratio for the quarter stood at 33.3 per cent. Important ratios such as return on assets and return on equity stood at 1.1 per cent and 14.4 per cent respectively on annual basis.

Biocon Ltd. (NSE: BIOCON) (Share Price: Rs.663.25): Potential Buy

Valuation: Attractive with TTM P/E 47.36x

Reasons to consider: The company’s entry in the biosimilars business is a long term positive for the company.Biocon-Mylan has recently received an approval for Trastuzumab and Pegfilgrastim in US, this will help the company to grow its profit over next five years.

Drivers: The key growth driver is its biosimilars as most product under this segment are gaining market share and generating healthy revenue.

Financial: On the financial front the revenue from operations stood at Rs 1,540.8 crore for the quarter Q3fy19, against Rs 1,057.9 crore.EBITDA grew by 71.7% yoy to Rs380.7cr in Q3FY19 vs. Rs221.7cr in Q3FY18. EBITDA margins in Q3FY19 stood at 24.7% vs. 21% in Q3FY18 and 25.7% in Q2FY19. PAT grew by 136.3% yoy to Rs217.2cr in Q3FY19 vs. Rs91.9cr in Q3FY18.

Teamlease Services Limited (NSE: TEAMLEASE) (Share Price: Rs.2613): Potential Buy

Valuation: Fairly valued with TTM P/E of 46.72x.

Reasons to consider: :Company's consolidated sales grew 27% YoY as the company added 7.5k associates and ~4k NETAP trainees. The company is likely to get benefit from growth of organised flexi-staffing,We estimate TeamLease to end FY19 with employee associates of 155k plus and we assume 17-18k addition in FY20, implying 10% plus headcount growth.

Drivers: Improving margin and lower tax rate (sec 80JJAA) will act as a major driver to further ramp up its business.

Financial: On the financial front the revenue for the quarter Q3FY19 grew by 27.7% yoy and 7.5% qoq to Rs1,172.23cr. EBITDA came in at ~Rs25cr, up 37.1% yoy and 2.0% qoq.The EBITDA margin expanded 14bps yoy, but contracted 11bps qoq to 2.1%. Reported PAT grew by 37.3% yoy and 1.3% qoq to ~Rs25cr.

Ram Ratna Wires (BSE: 522281) (Share Price: Rs.121): Potential Buy

Valuation: Fairly valued at TTM P/E of 11.48

Reasons to Consider: Company’s net profit has grown at a CAGR of 45.8 percent over the last three years. It is supplier to both OEMs and the players belonging to the replacement market. Its client base includes top brands like Emerson, Crompton Greaves, Cummins, Siemens, Schindler, Godrej group, etc. It has planned an expansion programme under which a greenfield project is in progress, RRWL has acquired 60 percent majority stake in a domestic company by investing Rs 10 crore. The acquired company manufactures copper tubes, which are used in the air conditioners and refrigerators. It has a capacity of 250 MT per month of copper tubes, which the company intends to take to 3000 MT per month over a span of three years

Drivers: Through the acquisition and joint venture, major traction in the top-line and margins is expected in the near term. Also, the demand for copper wires is increasing on the back of growth seen in electric power sectors.

Financial: On financial front, standalone revenue for Q2FY19 came in at Rs. 296.81 crore as compared to Rs. 236.15 crore for same period last year, registering 25.7 percent yoy increase. At operating level EBITDA for the quarter fell by 17.3 percent yoy to Rs. 13.7 crore from Rs. 16.57 crore with a corresponding margin contraction of 240 bps. EBITDA margin for the quarter stood at 4.6 percent. This margin contraction was aided by higher depreciation along with higher manufacturing costs. Net profit for the quarter came in at Rs. 3.48 crore which was Rs. 7 crore in same quarter of last fiscal, registering yoy decline of 50.5 percent. PAT margin saw contraction of more than 180 bps.

Share Market Tips For January 2019

Share Market Tips For January 2019:4th Week

Coal India (NSE: COALINDIA) (Share Price: Rs.240.55): Potential Buy

Valuation: Undervalued with TTM P/E of 13.20x

Reasons to consider: The company expects incremental revenue of around Rs. 6421 crore on account of upward revision of non-coking coal prices. Further, rising demand from the non - power sector and increasing e-auction prices will benefit the company in the coming quarters. In FY19, the company will supply 513 million tonnes of coal and 12 million tonnes through e-auction to the power sector.

Drivers: The demand for coal is estimated to be 900-1,000 MTPA by 2020 and 1,300-1,900 MTPA by 2030. Also, new mines might be required to meet the demand and achieve the targets set by Coal Vision 2030.

Financial: Coal India consolidated revenue for the second quarter ended September 30, 2018 came in at Rs. 24209.33 crore as compared to Rs. 19171.73 for the same period last fiscal, registering 26.3% you increase. EBITDA for the quarter rose by 221.7% yoy to Rs. 5925.5 crore with a corresponding margin expansion of 1487 bps. EBITDA margin for Q2FY19 stood at 24.5%. The net profit for the quarter came in at Rs. 3084.7 crore as against Rs. 370.43 crore in the same quarter last year, yoy increase of 732.7%. PAT margin during the period stood at 12.73%.

ICICI Bank Ltd. (NSE: ICICIBANK) (Share Price: Rs.365): Potential Buy

Valuation: Overvalued with TM PE of 68.28x. and PB of 2.31x.

Reasons to consider: The bank posted healthy numbers in Q2FY19. Robust fee growth (17% up YOY), sustain NIM. Asset quality improved- Gross non-performing assets (GNPA) eased to 8.54% in Q2FY19 over 8.81% in Q1FY19. Net NPA also improved to 3.65% from 4.19% during the period.

Drivers: The company posted better than expected numbers in Q2FY19. The bank posted uptick in growth, strong operational performance and sustain NIM. The pullback in asset quality and uptrend in coverage were inspiring.

Financial: In Q2FY19, Net interest income (NII), grew 12.41% YOY to Rs 6,417.6 crore with good loan growth of 12.8% YoY and margin improvement. NIM improves by 14bps QoQ. Domestic loan growth for the quarter was at 16% YoY. Deposits also registered a double-digit growth in Q2, growing 12% YoY to over Rs 5.58 lakh crore.

Share Market Tips For January 2019: 3rd Week

VIP Industries (NSE: VIPIND) (Share Price: Rs.512): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Overvalued with TTM PE of 46.05x

Reasons to consider: VIP Industries is India's leading luggage brand with 55 % organized market share, leading player in terms of value in backpacks and making inroads into ladies handbags. Five years CAGR sales growth is at 12%. Debt free company.

Drivers: New segment is ladies handbag is next driver with $ 1 billion market to tap. Experienced team investing in brand and now own capacities (Bangladesh) should drive revenue over next five years.

Financial: In Q2FY19, revenue grew to Rs 402 crores vs Rs 309 crores in Q2FY18. The company recorded operating profit at Rs 53 crores vs Rs 43 crores in Q2FY18. PAT up by 37.5% YoY to Rs 33 crores.

Sun Pharmaceutical Industries Ltd. (NSE: SUNPHARMA) (Share Price: Rs.385): Avoid

Valuation: Overvalued with TTM PE of 37.8x.

Reasons to avoid: The company is battling over corporate governance issues. Also, recently its US subsidiary has started voluntarily recalling 13,918 cartons of Vecuronium Bromide Injection of 10 mg and 20 mg strengths from US market at hospital level, following the identification of "particulate matter identified as glass" in the product.

Financial: In Q2FY19, company reported revenue of Rs 6937 crores vs Rs 7224 crores in Q1FY19. Company reported loss of Rs 107 crores in PAT.

Share Market Tips For January 2019: 2nd Week

Capacite Infra projects Limited (NSE: CAPACITE) (Share Price: Rs.248.40): Potential Buy

Valuation: Undervalued with TTM P/E of 18.61x

Reasons to consider: The company’s order book in Q2FY19 stood at Rs. 10,900 crore, which translates into book-to-bill of almost 6.8x, which gives revenue visibility for the next 6 to 7 years. During the first half of FY19, Capacite has received orders worth Rs. 1807 crore from the private sector, out of which 65 per cent are repeat orders from the existing clients. This proves the strength of Capacite's client relationship for the long term, which generates repeat orders from them. On the back of healthy order book and repeated orders, the company expects sales to grow at 25 per cent CAGR over next 2-3 years.

Drivers: Revival of the real estate sector, coupled with consolidation in the sector, which would further push up the order book. Apart from the strong order book, improving working capital cycle and healthy balance sheet will drive the stock further.

Financials: On the financial front, the strong execution of orders boosted Capacite Infra’s topline in Q2FY19 to Rs. 443.1 crore, representing 38 per cent growth over the corresponding quarter of last year. The company’s EBITDA for the quarter surged almost 34.8 per cent yoy to Rs. 64.6 crore. However, EBITDA margin for the period contracted marginally by 29 bps yoy to 14.6 per cent. This was due to initial cost for new projects that the company started executing in the quarter. In line with the operational performance, it also reported stellar growth of around 31 per cent in net profit to Rs. 17.6 crore as compared to the same quarter of the previous fiscal, but the net profit margin for the quarter declined marginally by 30 bps yoy.

Subros (NSE: SUBROS) (Share Price: Rs.268): Potential Buy

Valuation: Fairly Valued with TTM P/E of 22.27.

Reasons to consider: Subros being the largest automotive AC systems company is placed very well considering the potential in PV sales growth. Subros is a major beneficiary of the government policy which has made use of air blowers compulsory in trucks and Subros has ~70 % market share in the truck segment & 40% share in PV segment. Further, the company expects to execute railway orders worth Rs. 17 crore in FY18 and Rs. 26 crore in FY19E.

Drivers: According to SIAM (Society for Indian Automobile manufacturers), the PV industry is expected to grow by 10.7% CAGR over FY18-21E. On the operational front, the company expects to gradually reduce the import content to 25% over the next 2-3 years to improve margins.

Financial: The company's standalone revenue for the quarter Q2FY19 came in at Rs. 564.03 crore as against Rs. 497.15 crore in the corresponding quarter last year, registering an increase of 13.5% YoY. The EBITDA for the quarter rose by 8.7% YoY to Rs. 59.31 crore as against Rs. 54.57 crore in the corresponding quarter last year, with a corresponding margin contraction of 46 bps. The EBITDA margin for the quarter stood at 10.5%. The contraction was led by higher staff cost and higher other expenses such as selling & distribution expenses like freight and packaging material .The PAT for the quarter came in at Rs. 23.81 crore as against Rs. 15.08 crore in the corresponding quarter last year, an increase of 58% YoY.

Share Market Tips For January 2019: 1st Week

Nestle India Ltd. (NSE: NESTLEIND) (Share Price: Rs.11059): Avoid(10 Steps To Pick The Best Stocks)

Valuation: Overvalued with TTM PE of 67.99x.

Reasons to Avoid: “Lead in Maggi� case is again in talk which can impact stock in short run until dust settle down. As per reports lead in Maggi is below detectable limits which was reported on justices by court that as to why they should eat noodles if there is any lead.

Financial: In Q2FY18, company reported revenue of Rs 2939 crores vs Rs 2514 crores in Q2FY18. Operating profit stood at Rs 792 crores. Company recorded PAT of Rs 446 crores against Rs 343 crores in Q2FY18.

GM Breweries Ltd. (NSE: GMBREW) (Share Price: Rs.644): Avoid

Valuation: Undervalued with TTM PE of 14.10x.

Reasons to avoid: The company posted weak numbers in Q3FY19. The company's Q3 net profit declined by 25.1% at Rs 16.7 crore from the profit of Rs 22.3 crore reported in the same quarter last year. EBITDA margin compressed to 20% vs. 29%. Its total expenses for the quarter rose to Rs 425.5 crore, an increase from Rs 401 crore in the corresponding quarter last year. Also, states are expected to hike taxes on liquor -- one of the top three revenue sources -- as they need to plug the fiscal hole arising from bearing the burden of farm-loan repayments. Any rise in tax will impact alcohol demand as companies will have to pass the additional levy to consumers.

Financial: In Q£FY19, revenue up 6% YoY at Rs 124.6 crore versus Rs 117.9 crore. PAT down 25% YoY at Rs 16.71 crore. Earnings per share (EPS) of the company came in at Rs 9.14 against Rs 15.25 in the year-ago period.

Rites (NSE: RITES) (Share Price: Rs.260): Potential Buy

Valuation: The company is undervalued with TTM PE of 13.48x

Reasons to consider: RITES intend to increase scale of operations in railway infrastructure sector by taking up turnkey projects and expansion of services for metro and airport projects too. Further, it also plans to increase share of business in renewable energy generation and power procurement for Indian Railways, manufacturing of wagons and joining upcoming opportunities like station development. This could meaningfully improve its order book and thereby lead to increased revenues.

Drivers: As of Sept 2018, Rites order book stands at Rs 6183 crores, with several central and state government ministries, departments, corporations, authorities and public sector undertakings. Strong financial and expanding international foothold bodes well for the company in the longer run.

Financials: Revenue from operations has increased at a CAGR of 12% from Rs 10,12.68 cr in the FY15 to Rs 1663 cr in the FY18, and its PAT has increased from Rs 3,12.21 cr in FY15 to Rs 3,65 cr in the FY18.

 

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What is a multibagger stock? A stock which can give you manyfold returns. Yes, that's true. Multibagger stocks are defined in a similar manner. The legendary investor Peter Lynch has termed Multibagger stocks in his book One Up On Wall
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Best Multibagger Stocks And Sectors For 2019

A Multibagger Stock is the one which can give manifold returns. Here is the list of stocks and sectors which are expected to turn to be multibaggers in the upcoming years. Disclaimer: Stocks and opinions below are for informational
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