Sumit Bilgaiyan Equity99
Nifty is trading in very narrow range since last 5-6 weeks but we have seen some positive stock specific movement in last one month.
Last week, the result season started with muted numbers. Indusind Bank, Bandhan Bank, TCS and Infosys posted their Q3FY19 numbers. All
four companies posted below expectation numbers, but this is just the beginning of the season. Most of the companies will declare their numbers
between January 20 and February 10.
Most of the fund managers and analysts are talking about midcaps. But, we have been talking about midcaps for the last two months and we are quite confident that fundamentally strong midcap and small cap stocks can delivered double digit returns in next 3-5 months. But, stock selection will be very important.
There are bunch of companies who will announce their results such as KPIT, Trident, HT Media, AU BANK, Atul, ICICIGI, HDFC Bank, etc. For
next week, Nifty has strong support at 10,730-10,650 levels and resistance at 10,870-10,940 levels.
Bharat Electronics designs, manufactures, supplies and exports electronic equipment and systems for defense and civilian markets. It has reported excellent results for Q2FY19. Sales grew by 36.7 percent YoY to Rs 3,381.41 crore while EBITDA grew by 44.1 percent to Rs 854.44 crore and PAT increased by 38.5 percent to Rs 571.31 crore as against Rs 412.4 crore. EBITDA margin expanded ~130bps YoY to 25.3 percent.
Its PAT increased by 39.67 percent to Rs 751.04 crore in H1FY19. Its order book increased to Rs 48,995 crore against Rs 41,645 crore on QoQ basis. At CMP, the stock is trading at P/E of just 13.5x.
Being a Navratna Company, it is paying huge dividend to shareholders. It has paid 200 percent dividend for FY18. Technically too, the stock is ready for up move. We are recommending a buy in staggered manner for medium to long term.
With 26 percent equity each from the Galla Family and Johnson Controls (USA), Amara Raja Batteries (ARBL) is the technology leader and one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry.
ARBL supplies automotive batteries under OE relationships to Ford India, Honda, Hyundai, Mahindra & Mahindra, Maruti Suzuki, Ashok Leyland, and Tata Motors, Honda Motorcycles & Scooters India Private Ltd, Royal Enfield, Bajaj Auto Ltd among others. Due to higher raw material prices, company had posted muted numbers for FY18 & H1FY19, but we are expecting better numbers in H2FY19.
During H1FY19, its sales and EBITDA grew by 13.97 percent and 6.02 percent YoY, respectively, while PAT increased by 2.73 percent to Rs 233.26 crore. At the CMP, the stock trades at a P/E of 27x on TTM EPS. Stock has given strong break out on weekly chart. We are recommending a buy in staggered manner for medium to long term.
Apollo Hospital is one of the leading private sector healthcare service provider company. The company operated 70 hospitals with more
than 10,000 beds. It also operates 3,167 retail pharmacies; approximately 500 retail healthcare centers; approximately 148 telemedicine units; and 1 research foundation.
Company has reported excellent results for H1FY19, income has improved by 13.13 percent YoY to Rs 4,000.51 crore while PAT increased by 31.13 percent to Rs 139.14 crore as against Rs 106.11 crore. PBDIT grew by 22.69 percent to Rs 484.46 crore during H1FY19. On technical front stock has formed strong higher top higher bottom formation which is bullish in its nature. We are recommending a buy in staggered manner for medium to long term.
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