Sumit BilgaiyanEquity99
We have seen sharp correction in Nifty and Sensex at starting of the week and saw strong recovery from lower level during the week. Market has discounted worst news like resignation of RBI Governor and State Election’s verdict. We have seen strong rally in midcap and smallcap stocks during the week as per our expectation.
Our markets will perform with global markets in coming days, however, we are expecting stock-specific momentum to continue and quality midcap and smallcap stocks will perform well. Many important events are also lined up in this week which will drive the market. FOMC will meet on December 18 and 19. GST council will meet on December 22.
For the week, Nifty has strong support at 10,725-10,675 levels and resistance at 10,890-10,940 levels.
Our past recommendations like Bajaj Auto, Siemens, GSFC, Hero Motocorp, Maharashtra Seamless, Britannia Industries, M&M Finance, L&T Finance Holdings, etc. have given fantastic returns in very short term.
L&T Technology Services (LTTS) is a listed subsidiary of Larsen & Toubro focused on Engineering and R&D (ER&D) services. Company offers consultancy, design, development and testing services across the product and process development life cycle.
Its customer base includes 52 Fortune 500 companies and 51 of the world’s top ER&D companies, across industrial products, medical devices, transportation, telecom & hi-tech, and the process industries.
Company has posted strong numbers for Q2FY19. During Q2FY19, its net profit increased by 56 percent to Rs 191.8 crore from Rs 123 crore on YoY basis on 41 percent higher income of Rs 1266.1 crore. It’s PAT increased by 76 percent to Rs 389.9 crore and income grew by 40 percent to Rs 2418.3 crore in H1FY19.
LTTS trades at PE ratio of 25x. LTTS won 6 multi-million dollar deals across Industrial Products, Process Industry and Telecom & Hi-tech. Its Revenues from digital & leading-edge technologies increased to 33 percent and grew by 66 percent YoY. It has paid 800 percent dividend for FY18 & 375 percent interim dividend for FY19. We are recommending a buy in staggered manner for medium to long term.
KEI manufactures and markets Extra-High Voltage (EHV), Medium Voltage (MV) and Low Voltage (LV) power cables. Serving both retail and institutional segments, KEI has emerged as a one-stop shop for products and services, with its growing presence in the Engineering, Procurement and Construction (EPC) services domain further strengthening its leadership position.
Company has posted strong numbers for Q2FY19. During Q2FY19, its net profit increased by 45 percent to Rs 41.37 crore from Rs 28.50 crore on YoY basis on 33 percent higher sales of Rs 996.79 crore. It’s PAT increased by 31.4 percent to Rs.73.55 crore and sales grew by 23 percent to Rs 1880.69 crore in H1FY19.
KEI trades at PE ratio of 18x. Its pending order is approximately Rs 3401 crore plus L1 Rs 540 crore of EPC , EHV & Export. We are recommending a buy in staggered manner for medium to long term.
Gujarat Fluorochemicals (GFL) is the largest producer of chloromethanes, refrigerants and Polytetrafluoro-ethylene (PTFE) in India. It is fully focused on and diversified within fluorine chemistry, making refrigerant gases, fluorointermediates and a host of fluoropolymers.
The company is a part of THE INOX GROUP, which is diversified across the industrial gases, engineering plastics, refrigerants, chemicals, cryogenic engineering, renewable energy and entertainment sectors.
Company has posted strong numbers for Q2FY19. During Q2FY19, its net profit increased by 684 percent to Rs 468.3 crore from Rs 59.8 crore on YoY basis on 69 percent higher sales of Rs 1479.5 crore. It’s PAT increased by 420 percent to Rs 615.5 crore and sales grew by 45 percent to Rs 2839.2 crore in H1FY19.
GFL trades at PE ratio of 14x. It has paid 350 percent dividend for FY18. We are recommending a buy in staggered manner for medium to long term.
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