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

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

Share-market-tips

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 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.

Share Market Tips For October 2018

Share Market Tips For October 2018: 4th Week

Sanco trans Ltd. (BSE: 523116) (Share Price: Rs.217): Avoid (10 Steps To Pick The Best Stocks)

Valuation: Overvalued with trailing PE of 450.28x.

Reasons to avoid: The market cap of the company is very low. On a consolidated basis, the company has posted negative earnings since last two years. Lack of operational efficiency hitting company's earnings.

Drivers: Shipping and logistics industry is pacing up which reflect in peers' financials. Company still posted poor earnings. The company delivered flat growth of 1.3% since last five years.

Financial: Net sales stood at Rs.82 crores in FY17 vs Rs.76 crores in FY13. EBITDA stood at Rs.9.6 crores in FY17 vs Rs.15 crores in FY13. EPS stood at Rs.1.81 per share in FY17 vs Rs.35.37 per share in FY13.

Bajaj Auto Ltd. (NSE: BAJAJ-AUTO) (Share Price: Rs.2453): Avoid

Valuation: Undervalued stock with TTM PE of 15.85x.

Reasons to avoid: Company posted compressed EBITDA margin in Q2FY19 on account of drop in net realization and higher raw material cost. The 3% y-o-y drop in net realization on vehicles sold, as against expectations of flat realization, was the firms biggest failing. Price cuts and discounts on sales may be the reason. Both pricing pressure to regain market share and higher raw material costs took a toll on margins. Further , festive season mood can set the tone for higher realization but still higher commodity cost can maintain pressure on margins.

Financial: In Q2FY19, company reported sales of Rs 1339 crores vs Rs 1071 crores in Q2FY18. EBITDA margin compressed by 290bps YoY. Net profit stood at Rs 1152 crores vs Rs 1112 crores.

Sterling Biotech Ltd. (NSE: STERLINBIO) (Share Price: Rs.0.78): Avoid

Valuation: Very expensive stock with negative returns.

Reasons to consider: The Enforcement Directorate on filed a supplementary charge sheet under the Prevention of Money Laundering Act, 2002 (PMLA) against promoters of Gujarat -based pharma firm Sterling Biotech and its directors. The investigation revealed that the Sandersara brothers and others had manipulated figures in the balance sheets of their flagship companies and induced banks to sanction higher loans. The total amount of loan fraud as on date is Rs 8,100 crores.

Financial: The company posted negative earnings since last six years. Margin is compressing. Promoters have pledged 62.29% of their holding.

Hindustan Zinc Ltd. (NSE: HINDZINC) (Share Price: Rs.279): Potential Buy

Valuation: Undervalued with TTM PE of 14.10x.

Reasons to consider: Company is financially sound with strong balance sheet. The stock price has corrected recently led by price correction in zinc and lead globally. Future outlook for metal prices is strong with a structurally positive pricing scenario for zinc and lead globally due to mining supply cuts and the metal deficit. Attractive dividend payouts and high free cash flow generation further buttress give a positive stance on the stock

Financial: In H1FY19, Revenue stood at Rs 10,087 crores vs Rs 9885 crores in H1FY18. The company reported PAT of Rs 3733 crores vs Rs 4473 crores in H1FY18. The company announces interim dividend of Rs 20/share.

Share Market Tips For October 2018: 3rd Week

JK Paper (NSE: JK Paper ) (Share Price: Rs.164) : Potential Buy

Valuation: Undervalued with trailing PE of 9.6x.

Reasons to consider: Company posted robust numbers in Q1FY19. Debt free company with healthy margins. Paper industry is doing well owing high demand. ROE improved to ~17%.

Drivers: Favorable demand-supply situation is likely to continue to benefit copier paper segment (CPM) over the medium term in uncoated W&P paper segment which accounts for ~62% of its sales volume. Higher realization fuels financial strength of the company.

Financial: In FY18, ROCE and ROE of the company decreased to 6.7% and 5.3% respectively. Revenue stood at Rs 839 crores, EPS stood at Rs 1.63/share.

Share Market Tips For October 2018: 2nd Week

Suzlon Energy (BSE: SUZLON) (Share Price: Rs.5.76): 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.

Financials: In Q1FY19, the company reported revenue of Rs 1277 crores vs Rs 2174 crores in Q4FY18. Operating margin turn out negative owing to high cost. The company posted negative net profit since last three quarters.

Share Market Tips For October 2018: 1st Week

Infibeam Avenues Ltd (NSE:INFIBEAM) (Share Price: Rs.68.9) : Avoid

Valuation: Overvalued with negative TTM EPS.

Reasons to Avoid: There is no clarity on certain pointers in company. The company had negative auditor observations over the last few years. In, the FY17 company purchased software worth Rs 50 crores from MMS Solutions Pvt Ltd however in the financial statement of MMS shows no revenue and no employees for the year.

Financial: In FY18, ROCE and ROE of the company decreased to 6.7% and 5.3% respectively. Revenue stood at Rs 839 crores, EPS stood at Rs 1.63/share.

Share Market Tips For September 2018

Share Market Tips For September 2018: 5th Week

Rites (NSE: RITES) (Share Price: Rs.234): Potential Buy

Valuation: The company is undervalued with TTM PE of 13.46x

Reasons to consider: RITES intend to increase the 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 the 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: Right now company is having healthy orderbook of Rs 48 bn which provides three years of revenue visibility. Strong financials 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.

JK Paper (NSE: JKPAPER) (Share Price: 164): Potential Buy

Valuation: Undervalued with trailing PE of 9.6x.

Reasons to consider: Company posted robust numbers in Q1FY19. Debt free company with healthy margins. Paper industry is doing well owing high demand. ROE improved to ~17%.

Drivers: Favourable demand-supply situation is likely to continue to benefit copier paper segment (CPM) over the medium term in uncoated W&P paper segment which accounts for ~62% of its sales volume. Higher realization fuels financial strength of the company.

Financial: In FY18, revenue grew to Rs 2844 crores from Rs 2628 crores in FY17. EBITDA margin improved to 22.5%. PAT margin improved to 9% . EPS stood at Rs 14.85/share.

Share Market Tips For September 2018: 4th Week

Intrasoft Technologies (NSE: ISFT) (Share Price: Rs.191): Avoid (10 Steps To Pick The Best Stocks)

Valuation: Overvalued ,trailing PE of 27x which seems to be higher as compared to its close peers.

Reasons to avoid: The company has reported negative sales growth in last two years. Its receivable has increased to 204 days in FY17 which is more than two quarters.

Drivers: The company's business model based on E-commerce retailing and it is majorly in USA. On account of this, higher receivables are eating out the current cash flow of the company.

Financial: On consolidated basis, net profit is stable at Rs 13.7 crores in FY18 vs FY17 but down as compare to FY16 . PAT margin compressed to 1.17% in FY18. ROE and ROCE stood at 10%/ 12% in FY18.

Zicom Electronic Security Systems Ltd(NSE: ZICOM) (Share Price: Rs.9.47): Avoid

Valuation: Poor valuation with negative earnings.

Reasons to avoid: The company has delivered poor growth of 8.06% in last five years. The company has delivered negative return ratios. Promoter's have stake has decreased. Promoter's have pledged more than 72.1% of their holdings. Promoter holding is 10.28%. Contingent liabilities of Rs. 724.14 Cr.

Financial: On YoY basis, company has delivered negative earnings since last couple of years. Splitting year in quarters, the scenario is the same as all quarters are in negative territory. Borrowings increased by more than double in last few years with low-interest coverage rati

RCON International Ltd (IPO) : Potential IPO

About Company: Incorporated in 1976, IRCON International Limited (IRCON) is four decade old government company (under the ministry of railways). It is engaged in the business of engineering and construction mainly specialising in major projects including railways, highways, bridges, flyovers, tunnels, aircraft maintenance hangers, runways, EHV substations, electrical and mechanical works, commercial and residential properties, development of industrial areas and other infrastructure activities. IRCON provides EPC services on a fixed-sum turnkey basis as well as on an item-rate basis for various infrastructure projects. Presently it has 26 project offices and five regional offices to support and manage its business operations throughout India and five overseas project offices in Sri Lanka, Bangladesh, Malaysia, South Africa and Algeria to provide onsite support overseas

Object of the Issue: The object of the offer is to carry out the disinvestment of upto 99,05,157 equity shares by the promoter, and to achieve benefits of listing the equity shares on the Stock Exchanges. The public issue comprises an offer for sale of 99,05,157 equity shares by its promoter, The President of India, acting through the Ministry of Railways, Government of India. The company will not receive any proceeds from the offer and all proceeds will go to the selling shareholder.

Issue Date: Sept 17, 2018- Sept 19, 2018

Price Band: Rs 470-475 per share

Issue Size: Rs 462- 467 crore

Market Lot: 30

Valuation: On valuation front post-IPO IRCON is expecting PE of 11.28x on higher price band at FY18 EPS

Reasons to consider: Company has a strong credit profile that includes non-fund based standby bank limits of Rs 3,120 crore out of which Rs 1,664.77 crore has been utilised. As of March 2018, the financial profile of the company is characterised by healthy profit margins and a comfortable liquidity position. Healthy order book of Rs.22,406.79 crore with a book to bill ratio of ~5x gives healthy revenue visibility.

Financial: On a consolidated basis, over FY16-18, IRCON posted revenue and PAT CAGR of 27% and 2%, respectively. Average EBITDA margins stood at 10.8% and ROE at 10.3%.

Share Market Tips For September 2018: 3rd Week

Varroc Engineering Limited (NSE: VARROC) (Share Price: Rs.1017): Potential Buy

Valuation: Undervalued TTM PE 30.54x as compared to close peers.

Reasons to consider: The company is position among Indias top auto component groups, with a 4% share of global automobile lighting systems and top PV (passenger vehicle) makers as customers. The company also has a 6% share of the premium PV lighting market, which is growing fast. Operating margin and return ratios are lower than peers.

Drivers: As per management forecast that the company is increasing presence in the premium LED lighting segment which will lift realizations and margins. A low-cost manufacturing base and focus on driving up margins, lift the growth prospectus of the company. Presence in the domestic and international market, strong relationship with clients, expansion plans in the process would aid topline.

Financial: Revenue grew from Rs 6951 cr in FY15 to Rs 10378 cr in FY18. PAT rose up to Rs 451 cr in FY18 from Rs 17 cr in FY15. EPS increased to Rs 33.4 per share in FY18 from Rs 1.35 per share in FY15.

Share Market Tips For September 2018: 2nd Week

Uflex (NSE: UFLEX) (Share Price: Rs.305): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Undervalued with TTM PE of 7.09x.Reasons to consider: The company posted healthy numbers in FY18 and Q1FY19 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 have increased to Rs 902 crores in FY18. The net profit has grown from Rs 252 crores in FY12 to Rs 312 crores in FY18.

Sanco Trans Ltd (BSE: 523116) (Share Price: Rs.225): Avoid

Valuation: Overvalued with trailing PE of 450.28x.

Reasons to avoid: The market cap of the company is very low. On a consolidated basis, the company has posted negative earnings since last two years. Lack of operational efficiency hitting the company's earnings.

Drivers: Shipping and logistics industry is pacing up which can reflect in peers' financials. Company still posted poor earnings. The company delivered flat growth of 1.3% since last five years.

Financials:Net sales stood at Rs.82 crores in FY17 vs Rs.76 crores in FY13. EBITDA stood at Rs.9.6 crores in FY17 vs Rs.15 crores in FY13. EPS stood at Rs.1.81 per share in FY17 vs Rs.35.37 per share in FY13.

Share Market Tips For August 2018

Share Market Tips For August 2018: 5th Week

Jet Airways (NSE: JETAIRWAYS) (Share Price: Rs.281): Avoid

Valuation: Negative earnings impacted valuation.

Reasons to avoid: The company has left with no extra cash to run operation not more than 60 days. Employees have been laid off, provision to cut salary by 25%, higher fuel price, rising market share of the competitor like indigo, etc factors are not in favour of the company.

Financial: In FY18, revenue grew to Rs 23,286 crores but operating profit tanked to Rs 23 crores and posted negative earnings.

Dredging Corporation India Ltd (NSE: DREDGECORP) (Share Price: Rs.471): Avoid

Valuation: Overvalued stock with PE of 78.86x.

Reasons to avoid: Interest coverage ratio of the company is low. Earning per share is about to touch zero levels. The company has delivered a poor growth of 3.87% over the last five years. The company has a low return on equity of 2.26% for the last three years.

Financial: Numbers are falling down continuously since FY15. Revenue growth was down in FY17 while slight up in FY18 but overall flat. Numbers are falling like a house of cards. Profit margins are hammered the last couple of years. Operational efficiency of the company is under surveillance.

Share Market Tips For August 2018: 4th Week

Ashok Leyland (NSE: ASHOKLEY) (Share Price: Rs.130): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Fairly valued with trailing PE of 20.96x 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 a relatively lower presence. Hence, overloading ease can have only ~1-2% impact on the company.

Drivers: Scrappage policy expected to come in by Apr-20 will be a major growth driver for the CV industry. Increased government focus on infrastructure spending, pre-buying ahead of BS VI implementation, scrappage policy, shift towards the hub and spoke model and pickup in mining activities would lead the growth momentum to continue for the M&HCV segment. Order from defence 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.

Kalpataru Power Transmission Ltd (NSE: KALPATPOWR) (Share Price: Rs.373): Potential Buy

Valuation: Slightly overvalued as compared to close peers with trailing PE of 26.83x.

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

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.

Pincon Spirit (NSE: PINCON) (Share Price:Rs. 7.95): Avoid

Valuation: Undervalued stock with TTM PE of 0.81x.

Reasons to avoid: The company came in the list of shell companies. Owing to which, it is undergoing forensic audit as of now for misuse of funds.

Financial: Companys latest financial are not available.

Anant Raj (NSE: ANANTRAJ) (Share Price: Rs. 44): Avoid

Valuation: Undervalued stock with TTM PE of 19x.

Reasons to avoid: The company posted flat growth in last five years. Also, higher cost puts pressure on margins. Margins are under pressure as of now excluding other income. ROE is low around 1.4% since last three years.

Financials: The company reported revenue of Rs 480 crores in FY18. Operating margin compressed to 22.9% from 30.2% in FY17. Net profit stood at Rs 67 crores.

Suzlon Energy (BSE: SUZLON) (Share Price: Rs.7.17): 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.

Financials: In Q1FY19, the company reported revenue of Rs 1277 crores vs Rs 2174 crores in Q4FY18. Operating margin turn out negative owing to high cost. The company posted a negative net profit since the last three quarters.

Share Market Tips For August 2018: 3rd Week

Amara Raja Batteries (NSE: AMARAJABAT) (Share Price: Rs.858): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Overvalued with trailing PE of 30.37x.

Reasons to consider: Revenue grown at five year CAGR of 17.6%. The company posted healthy numbers in FY18. The company have ROCE of 30% and ROE of 20%. Excellent track record and robust CapEx plan led to preferred supplier to majority of OEM's.

Drivers: Strong automotive growth drives the growth of the company. Capacity expansion by major OEM's and favourable macro opportunities creates a good platform for the company.

Financial: In FY18, the company recorded sales of Rs 6059 cr vs Rs 5317 cr in FY17. Operating profit stood at Rs 883 cr vs Rs 849 cr in FY17. The company recorded PAT of Rs 471 cr in FY

Lycos Internet Ltd (NSE: LYCOS) (Share Price: Rs. 4.45): Avoid

Valuation: The company has lower valuation as compared to peers.

Reasons to avoid: Promoter's stake has decreased. As far as pledging is concerned, promoter's have pledged 56.57% of their holdings. Company has contingent liabilities of Rs. 61.30 Cr.

Financial: In Q1FY19, expenses margin rose more as compared to sales margin. Company has posted negative earnings since last three years.

Share Market Tips For August 2018: 2nd Week

IG Petrochemical (NSE: IGPL) (Share Price: Rs.505): Avoid

Valuation: Undervalued with trailing PE of 10.68x.

Reasons to avoid: IG Petrochemical is one of the dominant players in Phthalic Anhydride (PA). Anti-dumping duty on PA, which was in force from December 2012 to December 2017, is under review as of now. In the interim, this duty safeguard has been extended till December 24, 2018. But the Directorate General of Trade Remedies has started the sunset review investigation concerning imports of PA originating in or exported from Asian countries like Korea, Taiwan and Israel. In recent, import from Asian countries have increased at CAGR of 30% over FY15-18; which can impact company's business in long run.

Financial: In FY18, the company recorded total income of Rs 1541.5 crores vs Rs 1234 crores in FY17. EBITDA stood at Rs 279.2 crores. The company recorded PAT of Rs 147.4 crores and EPS of Rs 35.53/ share.

Zicom Electronic Security Systems Ltd (NSE: ZICOM) (Share Price: Rs.12.65): Avoid

Valuation: Poor valuation with negative earnings.

Reasons to avoid: The company has delivered poor growth of 8.06% in last five years. The company has delivered negative return ratios. Promoter's have stake has decreased. Promoter's have pledged more than 72.1% of their holdings. Promoter holding is 10.28%. Contingent liabilities of Rs. 724.14 Cr.

Financials: On YoY basis, company has delivered negative earnings since last couple of years. Splitting year in quarters, the scenario is the same as all quarters are in negative territory. Borrowings increased by more than double in last few years with low-interest coverage ratio.

Share Market Tips For August 2018: 1st Week

Escorts (NSE: ESCORTS) (Share Price: Rs.908): Potential Buy (10 Steps To Pick The Best Stocks)

Valuation: Overvalued stock with trailing PE of 27.71x.

Reasons to consider: The company expanded margin by 330 bps to 11.2% in FY18 driven by higher sales, price hike, and cost control initiatives. Escorts achieved tractor volume growth of 26% in FY18 which is more than industry growth rate of 24%.

Drivers: New product launch and gain in market share fuels companys growth. Government initiatives towards increasing farm productivity via more state subsidiary for doubling the agricultural growth and normal monsoon is expected to drive demand for tractors and also reflected in Escorts growth.

Financial: The company has grown at CAGR of 5% in last five years. ROCE of the company improved to 21% in FY18 from 12% in FY14. ROE of the company also improved to 14% in FY18 from 9% in FY14. The company management is expected to improve ROCE to 25-30% by FY22. Also, aims to expand EBITDA margin to 13-14% by FY22.

Indiabulls Housing Finance (NSE: IBUHSGFIN) (Share Price: 1365): Potential Buy

Valuation: Undervalued stock with trailing PE of 14.29x.

Reasons to consider: The company posted robust numbers in Q1FY19. Also, maintains track record of posting healthy numbers. Management targets to gradually increase the share of securitization in its loan book from 10 percent currently to 20 percent over medium to long term; which fuels its growth. Company has also planned to mitigate pressure with a hike in lending rates and higher growth in commercial lending.

Drivers: Healthy growth in AUMs and QoQ expansion in spreads. Healthy growth would drive compounding-led returns.

Financial: In Q1FY19, the company has reported a rise of 30% YoY in consolidated net profit at Rs 1,048.68 crore. Net interest income (NII) was up by 22.1% at Rs 1,690 crore, from Rs 1,400 crore in the year-ago quarter.

Jet Airways (NSE: JETAIRWAYS) (Share Price: Rs.303): Avoid

Valuation: Negative earnings impacted valuation.

Reasons to avoid: The company has left with no extra cash to run operation not more than 60 days. Employees have been laid off, provision to cut salary by 25%, higher fuel price, rising market share of competitor like indigo, etc factors are not in favor of company.

Financial: In FY18, revenue grew to Rs 23,286 crores but operating profit tanked to Rs 23 crores and posted negative earnings.

Nocil (NSE: NOCIL) (Share Price: Rs.173): Potential Buy

Valuation: Undervalued stock with TTM PE of 15.57x.

Reasons to consider: The company reported heathy numbers in Q1FY18. Its a cash rich and debt free company. The company has ROE and ROCE of 16.3%/ 24.5% respectively. 1. Capex- Rs 170 cr. The company has completed phase I of New Mumbai capex is commissioned and operational. Expansion at Dahej is ex[ected to commission by Q3FY19. Considering high demand, the company has announced capex plan of Rs 255 crores in phase II; which is expected to commission by H1FY20.

Drivers: The company is in business of rubber chemicals which has application in tyre and rubber product industry. Tyre industry is growing led by growth in auto industry and imposition of anti-dumping duty on radial Tyres.

Financial: In Q1FY19, revenue grew by 24.7% YoY to Rs 268 crores. EBITDA margin expanded by 449 bps YoY to 29.9%. Net profit grew by 46.7% YoY to Rs 51 crores. EPS stood at Rs 3.08/ share.

Ashok Leyland (NSE: ASHOKLEY) (Share Price: Rs.113): Potential Buy

Valuation: Fairly valued with trailing PE of 18.18x 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 a relatively lower presence. Hence, overloading ease can have only ~1-2% impact on the company.

Drivers: 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.

Financial: In FY18, revenue grew to Rs 23,286 crores but operating profit tanked to Rs 23 crores and posted negative earnings.

 

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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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