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

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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 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.

Phoenix Mills Ltd (NSE: PHOENIXLTD) (Share Price: Rs.574.90): Potential Buy

Valuation: Attractive with TTM P/E of 31.56x.

Reasons to consider: The companys Wakad Project in Pune to get environment clearance in Q3FY19. Company expects to commence construction latest by Q4FY19. Its Lucknow project has all the required approvals and it expects to be operational by Q3FY20 which is ahead of schedule by almost one year. It is expected that 4.6 million square feet of strong cash-generating retail space to become operational between FY21 to FY23. It has average rental income in its largest retail mall chain of Phoenix Market City (PMC), of around Rs. 116.75 per square feet. With strong addition of new rental spaces company will generate more revenues in coming quarters. Its rental income for H1FY19 rose by 16 per cent YoY. At the same rate company will achieve overall top line growth of 15 to 20 per cent higher than last fiscal year.

Drivers: Companys rental income is likely to boost as it will add almost 90 per cent new capacity via new malls in new as well as same locations. Also with renewals of rental contracts will have very positive impact of about 20 per cent on annual basis. Hence even at these margins EPS is expected to grow up to 25 - 30 till FY20.

Financials: On financial front, company posted robust results for Q2FY19. The consolidated income from operations for the quarter came in at Rs. 404.73 crore from Rs. 370.62 crore, registering 9.2 per cent yoy increase. EBITDA for the quarter rose by 11.1 per cent yoy to Rs. 198.19 crore with a corresponding margin expansion of 82 bps. EBITDA margin for the quarter stood at 49 per cent. The net profit for the quarter came in at Rs. 66.61 crore as against Rs. 42.29 crore, registering yoy increase of 57.5 per cent. The PAT margin for the quarter stood at 16.45 with corresponding margin expansion of 504 bps from last years 11.41 net profit margin.

Tata Chemicals Ltd (NSE: TATACHEM) (Share Price: Rs.693.55): Potential Buy

Valuation: Undervalued with TTM P/E of 7.24x

Reasons to consider: The company plans to grow and acquire about 40-45 per cent market share in this segment. The company has announced capex of Rs. 2400 crore for capacity expansion at the Mithapur facility. This would result in enhanced soda-ash capacity by about 200,000 MT, salt production by 400,000 MT and upgraded turbines for higher efficiency with a reduction in carbon footprint. Notably, it has announced its foray into the Lithium-ion battery sector to develop cell chemistries to meet Indian application which is likely to be catalyst for the company in long run as batteries forms almost one-third of the cost of the overall e-vehicle cost. The nutraceuticals project is expected to be commissioned by Q1FY20E. Furthermore, the company is divesting its fertiliser business,which is generally a low margin segment, to focus towards specialty chemical business and farm business.

Drivers: The company added nutrimixes like khichdi and chila mix to its portfolio and looks to launch more such products as it believes the market is still under-penetrated.

Financials: On the financial front, looking at the recently concluded quarter Q2FY19, the consolidated revenue came in at 2960.66 crore as against Rs. 2690.19 crore in the corresponding quarter last year, registering 10 per cent yoy increase. Consumer products business registered an overall growth of 22 per cent over same quarter of previous year. Basic Chemistry Products witnessed 7 per cent yoy and Specialty Products division registered 12 per cent yoy growth. EBITDA for the quarter declined marginally by 5.6 per cent yoy to Rs. 602.03 crore with a corresponding margin expansion of 338 bps. EBITDA margin for the quarter stood at 20.33 per cent. The PAT for the quarter came in at Rs. 371.63 crore as against Rs. 346.9 crore in the corresponding quarter last year, yoy increase of 7.14 per cent.

Share Market Tips For January 2019: 2nd Week

Uniply Industries (NSE: UNIPLY) (Share Price: Rs.58.80): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Fairly valued with TTM P/E of 24.32x.

Reasons to consider: Company has posted a robust jump in topline as well as bottomline during recent quarter Q2FY19. The companys Q2FY19 revenue mix is comprised of interiors & furniture related products (62%), Construction (36%) and wood related products (2%). Also, with GST implementation, the company remains well-poised to gain market share from unorganized players (65%).

Drivers: Overall building solutions industry is expected to grow at 7% CAGR by 2022 and home furnishings would be the largest contributor to the same. Also, office and institutional furniture will drive the demand in this industry. Moreover, this industry is dependent upon the growth in real estate and hospitality & tourism sectors.

Financial: Uniply industries consolidated revenue for Q2FY19 came in at Rs.120.26 crore as against Rs. 91.71 crore in the same quarter last fiscal, registering 31.1% you increase. This was primarily driven by volume growth furniture products which saw growth of 7% YoY. In addition to that companys construction business was able to produce revenue of Rs.41.92 crore. On operational front, EBITDA for the quarter rose by 28.3% yoy to Rs. 21.35 crore from Rs. 16.64 crore last year with a corresponding margin contraction of 39 bps. EBITDA margin for the quarter stood at 17.8 % The net profit for the quarter came in at Rs.8.85 crore as compared to Rs. 6.15 crore during same quarter last fiscal, showing yoy increase of 43.9%.

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 companys 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 Infras topline in Q2FY19 to Rs. 443.1 crore, representing 38 per cent growth over the corresponding quarter of last year. The companys 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.

VRL logistics (NSE: VRLLOG) (Share Price: Rs.268) Potential Buy

Valuation: Fairly Valued with TTM P/E of 30.75x.

Reasons to consider: The companys goods transportation segment revenue increased by 17% led by increase in tonnage by 10.5% and increase in realization per ton by almost 7%. Also, lower lorry expenses improved the margins despite jump in fuel cost. Going ahead, the management expects tonnage would further improve the goods transportation revenue. On the capex front, in goods transportation business, it has reduced the plan to purchase of vehicles to 680-700 from 1200 as it can cater the demand with this capacity. The downward movement in diesel prices would improve the operating performance in H2FY19 as Diesel prices has corrected in last two months

Drivers: The management plans to renew some of the bus transport license coming up in next year for another 4 years. On the debt front, the net debt reduced from Rs. 63 crore as on March 31, 2018 to Rs. 54 crore as on September 30, 2018.

Financial: On the financial front, looking at the recently concluded quarter Q2FY19, the standalone revenue came in at Rs. 517 crore as against Rs. 452 crore in the corresponding quarter last year, registering 14% yoy increase. The EBITDA for the quarter fell by 3% yoy to Rs. 54 crore as against Rs. 56 crore in the corresponding quarter last year, with a corresponding margin contraction of 188 bps. EBITDA margin for the quarter stood at 10.5%. The PAT for the quarter came in at Rs. 20.6 crore as against Rs. 21.6 crore in the corresponding quarter last year, yoy decline of 4.5%.

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 QFY19, 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.

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.

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.

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%.

Share Market Tips For December 2018

Share Market Tips For November 2018

Share Market Tips For November 2018: 5th Week

Centum Electronics Ltd (NSE: CENTUM) (Share Price: Rs.381): Avoid (10 Steps To Pick The Best Stocks)

Valuation: Expensive stock.

Reasons to Avoid: The company posted negative earnings in last two quarters owing to higher cost of debt. Though operating margin has compressed to 5.4% in FY18 from last two years. Cash flow per share is also negative. Improvement is leverage status and operational efficiency would give financial strength to the company.

Financial: In Q2FY19, the company reported revenue of Rs 231 crores. Operating margin stood at 5.76% in Q2FY19. The company registered a loss of Rs 3.37 crores in PAT.

Share Market Tips For November 2018: 4th Week

Suzlon Energy (BSE: SUZLON) (Share Price: Rs.5.55): Avoid

Valuation: Expensive stock.

Reasons to avoid: Promoter's have pledged more than 99% of their holdings and holding is low: 19.79%. Promoter's stake has decreased. Debt is increasing continuously.

Financial: In Q2FY19, the company reported revenue of Rs 1204 crores vs Rs 1157 crores in Q2FY18. Operating margin turn out negative owing to high cost. The company posted negative net profit since last three quarters.

Apollo Tyres Ltd (NSE: APOLLOTYRE) (Share Price: Rs. 225): Potential Buy

Valuation: Undervalued with TM PE of 14.30x.

Reasons to Consider: The havoc created by floods at two of its manufacturing plants in South India, a transport strike and volatile raw material prices, could not prevent Apollo Tyres Ltd. from increasing its global sales by 23% in the second quarter of its FY19.

Drivers: The government has recently imposed a five-year anti dumping duty on the import of radial tyres from China; which is positive for the company. The company has multiple manufacturing facilities in India, Hungary and the Netherlands, with a vast manufacturing and sales network around the globe.

Financials: Apollo Tyres reported a decent increase in consolidated net profit at Rs 146 crore for the second quarter of the current financial year, as against Rs 140 crore in the same quarter of last fiscal. The total income during Q2FY19 stood at Rs 4,269 crore as against Rs 3,496 crore in the year ago period.

Share Market Tips For November 2018: 2nd Week

Page Industries (NSE: PAGEIND) (Share Price: Rs.25450): Avoid(10 Steps To Pick The Best Stocks)

Valuation: Overvalued with TTM PE of 73.03x.

Reasons to Avoid:The company comes under bracket of higher valuation. In recent quarter, the company reported a sharp slowdown in growth. Revenue and profit grew around 10% in the Q2FY19. Thats much lower than in the preceding five quarters, when revenue grew in the range of 17-22%, while profits were up 21-44%. Volumes also stagnant with a 0.1% drop as sales in the mens innerwear segment decelerated. Late arrival of festive season is one of the reason for volume slowdown. Revival in volume is awaited.

Financial: The company has reported net sales of Rs.1524.04 crores during H1FY19 as compared to Rs.1331.51 crores in H1FY18. The company has reported net sales of Rs.1524.04 crores during H1FY19 as compared to as compared to Rs.1331.51 crores in H1FY18. The company has reported EPS of Rs.194.61 in H1FY19.

Bharti Infratel Ltd (NSE:INFRATEL) (Share Price: Rs.262): Avoid

Valuation: Stock is overvalued at current levels with PE of 19.3x.

Reasons to avoid: Bharti Infratel (BHIN) has received a notice from Vodafone-Idea for exit of 27,447 co-locations on a consolidated basis. Management indicated that this should lead to a net reduction in monthly rental revenue by INR600-650m on a consolidated basis. This implies a likely decline of 9%/13% in rental revenue/EBITDA. The impact, however, is likely to be less severe than our expectation we were forecasting a net reduction of ~INR970m per month (i.e. a likely decline of 14%/20% in revenue/EBITDA not built in our estimates).

Financial:The 27,447 co-locations to be exited account for 13.7% of the total co-locations (200,778) on a consolidated basis as of 1QFY19. Management indicated that this is likely to result in a reduction in net monthly rental revenue by INR600-650m on a consolidated basis, i.e., 9%/13% impact on rental revenue/EBITDA. Although rental revenue would be hurt by the exits, the impact will be less severe than our expectation. We were forecasting a rental revenue impact of ~INR970m per month, i.e., a 14%/20% decline (not built in our estimates) on 1QFY19 consolidated rental revenue/EBITDA, arrived on the basis of the current rental rate of INR35,276.

Parsvnath Developers Ltd(NSE:PARSVNATH) (Share Price: Rs.8.45): Avoid

Valuation: Company is posting losses since last three years. There's no sign of recovery yet.

Reasons to avoid: The company's promoters have pledged 89.5% of their holdings. The company is sitting on high debt with a debt to equity ratio of 1.58x. The company has delivered poor growth of -20.98% over past five years and its return on equity of 2.18% over the last three years to have been very low. The company has contingent liabilities of Rs.255.48 crore.


Financial:Realty firm Parsvnath Developers Ltd has posted a net loss of Rs 21 crore in the second quarter of this fiscal. Its net loss stood at Rs 33 crore in the year-ago period. Total income fell marginally to Rs 23 crore during the July-September period of this fiscal year from Rs 24 crore in the corresponding period of the previous year.

Indian Hotels Company (NSE: INDHOTEL) (Share Price: Rs.131) : Avoid

Valuation:: Overvalued stock with TTM PE of 178x.

Reasons to avoid:: The company has delivered poor growth of 1.85% over past five years. Company has low interest coverage ratio. Numbers are uncertain for the company through the years. Peers are stable and posting in line number with market expectations. Short term stability is under threat.

Financial:: Looking at QoQ numbers, lot of uncertainty has been seen. Company reported narrowed consolidated net loss to Rs 5.57 crore for the quarter ended September 2018. The company had posted a net loss of Rs 59.95 crore for the corresponding period last fiscal. Total income stood at Rs 981.15 crore for the quarter under consideration as against Rs 864.18 crore in the same period a year ago.

Ashok Leyland (NSE: ASHOKLEY) (Share Price: Rs.118): Potential Buy

Valuation: Fairly valued with trailing PE of 18.91x as compared to close peers.

Reasons to consider: The company posted healthy numbers in FY18. The management expects to continue its strong growth over FY19, on the back of domestic infra-led M&HCV demand, hub & spoke model doing well and international markets performing well. Overloading restrictions seem to have eased only in UP and Rajasthan, where Ashok Leyland has relatively lower presence. Hence, overloading ease can have only ~1-2% impact on the company.

Drivers: The company reported 17 per cent increase in its total sale at 15,149 units for the month of October, 2018. Scrappage policy expected to come in by Apr-20 will be a major growth driver for the CV industry. Increased government focus on infrastructure spend, pre-buying ahead of BS VI implementation, scrappage policy, shift towards hub and spoke model and pickup in mining activities would led the growth momentum to continue for the M&HCV segment. Order from defense sector fuels topline of the company.

Financial: Net revenue increased by 30% to Rs 26,170.3 cr in FY18. EBITDA rose by 23.4% to Rs 2711.2 cr in FY18. PAT is up by 25.5% to Rs 1534.8 cr in FY18.

Share Market Tips For November 2018: 1st Week

Uflex (NSE: UFLEX) (Share Price: Rs.298)

Valuation: Undervalued with TTM PE of 6.6x.

Reasons to consider: The company posted healthy numbers in FY18 and Q2FY19 as well. High margin Aseptic's margins would benefit company at margin front.

Drivers: Uflexs Aseptic revenues are expected to start from H2FY19. Uflex will be the second player in the segment in India after Tetra Pack. The company expects to garner market share of 23-24%. Capex, continuous innovation and product portfolio expansion poised well for growth.

Financial: For year FY12, the company posted revenues of Rs 4515 crores and since then it has given steady growth and have managed to reach revenue size Rs 6697 crores in FY18 . The EBITDA of the company in FY12 was Rs 636 crores which has increased to Rs 902 crores in FY18. The net profit has grown from Rs 252 crores in FY12 to Rs 312 crores in FY18.

Kalpataru Power Transmission Ltd. (NSE: KALPATPOWR) (Share Price: Rs.356): Potential Buy

Valuation: Undervalued with trailing PE of 15.38x.

Reasons to consider: The company posted healthy numbers in last five years. Revenue grew at an approximate 10% CAGR in last five years. The company has a strong order book of Rs.12,404 crore in FY18. Significant improvement in utilization levels average utilization over 80% for FY18.

Drivers: Government thrust for electrification would boost company's growth. Healthy order inflow gives a long-term revenue visibility. The company expect Rs 9,000-10,000 cr order inflow in FY19; Expect railways biz to grow at 40% over next 2 years.

Financial: Revenue grew by 18% in FY18 to Rs.2,756 crore. EBITDA margin expanded to 11.5% by 300 bps. PAT is up by 110% to Rs.34 crore.

Oil and Natural Gas Corporation Ltd. (NSE: ONGC) (Share Price: Rs.153) : Avoid

Valuation: Undervalued stock with TTM PE of 8.86x.

Reasons to avoid: The government has announced a 10% higher price for natural gas at $3.36 per million British thermal unit for six month period beginning October 1. State-owned Oil and Natural Gas Corporation (ONGC) will barely break even at the new natural gas price. Also, the buyback route is being seen as a tool to meet the years divestment target by the government, in which ONGC is one of the name. For ONGC, looking at its total free cash and liquid investment, the buyback seems a bit hefty and amounts to around 42% of its total cash and liquid investments. If buyback happens, It might put ONGC in a tough spot, which could have an impact on the companys dividend payments.

Financial: In FY18, the company recorded total income of Rs 362,246 crores. PAT stood at Rs 23,355 crores vs Rs 26,359 crores in FY17. DE is at 0.5x. EPS stood at Rs 17.23/share.

ICICI Bank Ltd. (NSE: ICICIBANK) (Share Price: Rs.342): Potential Buy

Valuation: Overvalued with TM PE of 62.60x. and PB of 2.12x.

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.

Driver: 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.

 

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Niveza Research Desk : We are a team of stock market nerds trying to stay ahead of the herd. We spend our grey cells everyday to a pave a smooth road for our clients in the shaky world of stock market. While tracking the mood swings of the market we bring our clients the most rewarding deals.

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