Today's Call 

#Buy the shares of 63 Moons Technology Ltd (erstwhile Financial Technical Ltd) near the CMP of Rs.350, SL: Rs.342, T: Rs.421. 

63 Moons Group is radically transforming from a traditional fintech company to a leading-edge technological enterprise. This evolution focuses on emerging technologies, including blockchain, digital assets, cybersecurity, artificial intelligence (AI) and legal tech. 

63 Moons Technologies Ltd is transforming from fintech to tech enterprise, focusing on blockchain, AI, and cybersecurity. Key initiatives include 63 SATS, 3.0 Verse, and QiLegal. Photo: AngelOne

As mentioned above, the company has forayed into new verticals which will take the scrip to new highs.

63 moons Technologies offers consultancy, computer programming, and related services. It is a global leader in supplying technical intellectual property (IP) and domain expertise for the development and trading of advanced financial markets. These markets are designed to be transparent, efficient, and liquid, covering a wide range of asset classes such as stocks, commodities, currencies, and bonds.

#Accumulate the shares of Vodafone Idea Ltd near Rs.16.57/Rs.16.60, T: Rs.25/Rs.27/Rs.32. Three recent developments involving Vodafone Idea are noteworthy:

💢Financial Guarantee Waiver Request: As reported by The Business Standard on July 11, 2024, Vodafone Idea has approached the Department of Telecommunications (DoT) to request a waiver for a financial bank guarantee worth Rs 24,747 crore, which is due in September 2025. 

This guarantee must be deposited one year prior to the due date, as per spectrum auction rules. A source, who wished to remain anonymous, informed PTI of this request.

The moratorium period for spectrum payment obligations from auctions held until 2016 ends between October 2025 and September 2026. Given the government’s significant stake in the company, it is anticipated that measures will be taken to prevent any adverse impact on Vodafone Idea.

💢 Convertible Debentures Conversion: According to a report by the Economic Times on July 12, 2024, the Indian unit of American Tower Corp (ATC) has asked Vodafone Idea to convert the remaining 1,600 optionally convertible debentures (OCDs) into 160 million fully paid equity shares, representing a small 0.2% stake. Vodafone Idea is working towards this conversion as part of its financial strategy.

💢 Funding and Network Improvements: The India Times reported on July 11, 2024, that Vodafone Idea, bolstered by Rs 215 billion in recent funding, is set to enhance its network quality, potentially slowing subscriber growth for competitors Reliance Jio and Bharti Airtel. S&P Global noted that Vodafone Idea raised most of these funds through a Rs.180 billion follow-on public offer (FPO) completed in April 2024. 

The company plans to issue shares worth Rs.24.6 billion to equipment vendors Nokia and Ericsson to settle outstanding payments. 

Meanwhile, Equity Analysts have set target prices for the company’s shares ranging from Rs.22 to Rs.34, despite expectations of revenue decline due to a lack of network expansion and ongoing subscriber churn. 

Furthermore, on the positive side, the impact of recent tariff hikes by all three telecom operators is expected to be felt from the third quarter of FY25.

In an interesting development, Narendra Modi government is making a killing in the shares of Vodafone Idea Ltd. It acquired its stake in Vodafone Idea Ltd at ₹10 per share, above the then market price of ₹6.85; as per Companies Act regulations. It was a very prudent move of the NDA government.

#Accumulate the shares of BLB Ltd (Rs.18.65) in market dips. In January 2024, media reports indicated that Dream Achiever Consultancy Services Private Limited had announced an open offer for the acquisition of up to 1,37,44,967 (One crore thirty-seven lakh forty-four thousand nine hundred sixty-seven) fully paid-up equity shares of BLB Limited.

The shares have a face value of Re.1 each and represent 26% of the total issued, outstanding, and fully paid-up equity share capital of the company. The offer price was set at Rs.22.60 per equity share, higher than the CMP of the shares, indicating some form safety in terms of investment.

#In another significant development, the shares of Indowind Energy Ltd (Rs.32) made an intraday high of Rs.34.65, a couple of days back. I have been recommending the share since it was near Rs.10. The stock has given multifold returns to patient shareholders. You may book complete profits and wait for dips to enter.

#In an encouraging development, the shares of my recently recommended P C Jewelers Ltd (Rs.70) made a new 52 - week high Today at Rs.70.70. You may book profits and wait for dips to enter again. Congratulations to the shareholders.

 Today's Call

Introduction: BLB Limited specializes in 'Jobbing and Arbitrage,' known for its strong capital commitment and deep understanding of market dynamics and structure. The company's main business is trading and investing in shares and securities. BLB Limited is a corporate member of the National Stock Exchange of India Limited (NSE).

Buy the shares of BLB Ltd near the CMP of Rs.19.50, for targets above Rs.27.

According to ICICI Securities, here are the strengths of the company:

💢 Rising Net Cash Flow and Cash from Operating activity.

💢Company with Low Debt.

💢Increasing Revenue every quarter for the past 2 quarters. Photo: Nirmal Bang.

In a significant development in January, 2024, Dream Achiever Consultancy Services Private Limited, purchased 1.37 crore fully paid-up equity shares from public shareholders at a price of Rs.22.60 per share through an open offer. The total expenditure incurred by Dream Achiever Consultancy on this open offer amounted to Rs 31.006 crore. The face value of BLB Limited shares is Re.1.

Special Offer: If you have a portfolio size of Rs.1 (one) lakh and want to earn a steady income through a steady mix of delivery based (>= 80%) and options trading (<= 20%), then you can go for my profit sharing (70:30 below Rs.10 lakhs -- fixed) arrangement. If you remember, earlier the minimum portfolio size to join me was Rs.2 (two) lakhs.

Procedure:

💢You have to compulsorily open a demat account in my associated Brokerage House.

💢 Provide me, User Name and Password to trade (buy and sell) in your account.

💢The profit and loss will be adjusted every week and settled. If there's any loss, it will be adjusted in the future trade.

💢No stock will be bought in Figures Market, except sometimes a little risk will be taken in the Options Trading with less than 20% of the total portfolio amount (occassionally) to speed up the process and at the same time lower the risk of the money invested. 

💢No margin trading will be done in the account, to maintain a limited risk profile of the portfolio.

💢No other demat account, except those from my associated Brokerage House, will qualify for this offer.

💢This offer is valid till Kali Pooja (Deepawali/Sambat).

💢For more details, please send me a mail at: suman2005s@rediffmail.com or sumanm2007s@gmail.com.

1.

 Today's Call

Introduction:

Ashoka Metcast Ltd is a part of a diversified business group having interests in several sectors, which include: Oil and Gas, Steel, Infrastructure, Electronic Equipments and Real Estate. 

Its flagship Group Company - Gujarat Natural Resources Ltd is engaged in the business of Oil & Gas exploration and production. The company is listed in the BSE.

Buy the shares of Ashoka Metcast Ltd near Rs.20.40/Rs.20.50, for short term targets of Rs.32/37.

Financials:

Market Cap: Rs.50 Cr.

EPS: Rs.2.

TTM P/E: 10.10.

Industry P/E: 44.24.

Book value: Rs.41.83.

Ashoka Metcast Ltd's March, 2024 quarter's Financial Performance: 

Ashoka Metcast's net profit increased by 185.60% to Rs.3.57 crore in the quarter ending March 2024, compared to Rs.1.25 crore in the same quarter of the previous year. During the same period, sales went up by 104.62% to Rs 39.39 crore, from Rs.19.25 crore the previous year.

For the full year ending March 2024, the net profit grew by 48.76% to Rs.4.79 crore, up from Rs.3.22 crore the previous year. Annual sales also rose by 31.34% to Rs.66.25 crore, compared to Rs.50.44 crore in the previous year. 

From Simply Wall:

Ashoka Metcast had ₹127.9m of debt at March 2024, down from ₹157.5m a year prior. However, because it has a cash reserve of ₹15.1m, its net debt is less, at about ₹112.8m.

The latest balance sheet data shows that Ashoka Metcast had liabilities of ₹206.1m due within a year, and liabilities of ₹60.2m falling due after that. On the other hand, it had cash of ₹15.1m and ₹262.8m worth of receivables due within a year. So it actually has ₹11.6m more liquid assets than total liabilities.

This surplus suggests that Ashoka Metcast has a conservative balance sheet, and could probably eliminate its debt without much difficulty. Photo: Markets Guruji.

Special Offer: If you have a portfolio size of Rs.1 (one) lakh and want to earn a steady income through a steady mix of delivery based (>= 80%) and options trading (<= 20%), then you can go for my profit sharing (70:30 below Rs.10 lakhs -- fixed) arrangement. If you remember, earlier the minimum portfolio size to join me was Rs.2 (two) lakhs.

Procedure:

💢You have to compulsorily open a demat account in my associated Brokerage House.

💢 Provide me, User Name and Password to trade (buy and sell) in your account.

💢The profit and loss will be adjusted every week and settled. If there's any loss, it will be adjusted in the future trade.

💢No stock will be bought in Figures Market, except sometimes a little risk will be taken in the Options Trading with less than 20% of the total portfolio amount (occassionally) to speed up the process and at the same time lower the risk of the money invested. 

💢No margin trading will be done in the account, to maintain a limited risk profile of the portfolio.

💢No other demat account, except those from my associated Brokerage House, will qualify for this offer.

💢This offer is valid till Kali Pooja (Deepawali/Sambat).

💢For more details, please send me a mail at: suman2005s@rediffmail.com or sumanm2007s@gmail.com.

 Today's Call

#Re - enter the shares of Vodafone Idea Ltd (Rs.17.41) near the CMP for short term targets of Rs.22 and Rs.28. After the tariff hike and a bounce from Rs.17.30, the stock is looking attractive Moreover, Nuvama expects an inflow of $ 254 million through the passive funds. Also, Vodafone Idea, 5 other stocks expected to enter MSCI index, as per a recent report in Economic Times.

Meanwhile, JM Financial is bullish on Vodafone Idea as they see the telecom space remain in pink after the recent price hike. The stock has witnessed a bump in volumes in the last 3 months along with a bullish pole and flag pattern set up, says the research firm. The analysts gave a target of Rs.24/28 for the stock.

Amar Deo Singh, Head Advisory at Angel One on Monday said the telecom companies will gain from the recent tariff hike as they have not raised tariffs since 2021. 

For Vodafone Idea Ltd (VIL), the analyst said the stock has been like a "slow and steady" performer recently. "It seems that the worst is over for the stock. If it manages to sustain above Rs 21-22 levels, then the stock is headed for significant rally," Singh stated.

#The stock of Swan Energy Ltd (Rs.624) made an intraday high of Rs.628. The value unlocking of the shares will take place after the listing of RNEL, which has the capability to manufacture war ships.

#The shares of Indowind Energy Ltd (Rs.29.99) hit the Buyer Freeze in the NSE. I have been repeatedly advocating a buy and hold in the scrip since it was around Rs.11/12.

#Paravnath Developers Ltd (Rs.12.58) is showing gradual Improvement in fundamentals. The risk taking investors can buy the scrip for short term targets of Rs.21/22.

Front Running and Swan Energy Ltd (Rs.192.15)

Accumulate the stocks from distress selling....

Front-running is an illegal and unethical practice where someone trades in shares based on advance information from a broker, dealer, analyst, or other executive at a market intermediary in their personal accounts, before the trades are executed by that entity.  Photo: The Hindu BusinessLine.

After the name of Swan Energy Ltd, got entangled with Quant Mutual Fund, selling has been witnessed in the counter, especially yesterday when it fell more than 4% in intraday trade, closing near the days low. 

It is to be noted that around 100 stocks out of the basket consisting of 178 that are part of the portfolio of Quant Mutual Fund ended lower, post Moneycontrol's report on Sunday that mentioned SEBI's search and seizure operations on the premises of the fund house. The operation was conducted across two locations – Mumbai and Hyderabad. Quant Mutual Fund is owned by Sandeep Tandon, with assets under management close to Rs.90,000 crore.

It is pertinent to mention here that Quant Mutual Fund has been a top performer, growing its AUM significantly from Rs.258 crore in January 2020 to over Rs.90,000 crore by June 2024. 

However, selling in the counters of Swan Energy Ltd is just a MISNOMER, since allegations of front running is on the fund house and has nothing to do with individual stocks; except creating a negative sentiment on future performance (of the stocks in its portfolio); leading to forced redemptions by the investors -- means there could be sudden increase in supply of the shares of Swan Energy Ltd. 

The prudent investors should therefore accumulate the panic - selling - stocks by the investors of Quant Fund.

Meanwhile, according to Trenlyne, in May 2024, 27 mutual funds bought while only 4 mutual funds sold Swan Energy Ltd, resulting in a net change of 193,576 shares. 

Kirtan Shah from Credence Wealth Advisors LLP noted that Quant MF holds substantial investments in large-cap stocks, with significant exposure to Reliance. He mentioned that liquidity for redemptions isn't a concern but anticipated potential selling in mid and small-cap stocks held by Quant, possibly leading to short-term underperformance.

You need to accumulate, since a major event like RELISTING of the shares of Reliance Naval and Engineering Ltd (RNEL) will take place very soon. Post Listing Swan Energy Ltd will get the tag of Defence Stock, since according to my sources, RNEL has a high probability of getting contract for making WAR SHIPS.

Another major factor fueling the positive sentiment around Swan Energy Limited is its recent success in obtaining a significant order from the Karnataka government. 

The company will be installing India's second-largest solar plant, a pioneering project that highlights Swan Energy’s dedication to sustainable energy solutions. This initiative aligns seamlessly with the Indian government’s ambitious renewable energy targets and is anticipated to greatly enhance the company’s long-term growth.

About Swan Energy Ltd:

Swan Energy Limited, based in Mumbai, Maharashtra, is a global company with a long history dating back to 1909. Owned and managed by the Dave and Merchant families, it operates in three main areas:

Textile: Swan Energy produces and sells cotton and polyester textiles. It has a modern fabric processing plant in Ahmedabad, capable of handling 100,000 meters per day.

Real Estate: This segment focuses on developing and managing residential and commercial properties. The company is known for its high-quality construction and has completed over 24 million square feet of projects.

Energy: Swan Energy plays a crucial role in India’s energy sector with its 5 MMTPA FSRU-based LNG terminal in Jafrabad, Gujarat, the first of its kind in the country.

The company is known for its quality products and services and is always looking for growth and innovation opportunities. 

Some of its notable achievements include the 2018 commissioning of the Jafrabad LNG terminal, winning the “Best Energy Company” award at the CNBC-TV18 India Business Leaders Awards in 2020, and being ranked 10th on Forbes India’s Most Valuable Private Companies list in 2021.

As Swan Energy continues to grow and achieve milestones, it remains a significant player in India’s industrial sector. With a strong focus on renewable energy, the company is well-positioned for a bright future that aligns with India’s energy goals.

Investors and stakeholders are keenly watching its progress, expecting substantial returns in the coming years.

 Today's Calls

#Buy the shares of P C Jewelers Ltd (Rs.50.40) near the CMP for targets of Rs.61/67. The company has come up with better Bottomline in March, 2024 quarter. It is raising Rs.2000 crore debt through rights issue and private placement. Photo: Just Dial.

On June 26, 2024 the price of 10 grams of gold was ~Rs.72,000. Pure 24-carat gold was valued at Rs.72,220 per 10 grams, while 22-carat gold was priced at Rs.66,240 per 10 grams, indicating a drop in price. At the same time, the price of silver dropped to Rs.91,600 per kilogram.

#The share of Vodafone Idea Ltd (Rs.18.04) made a new 52 - week and reached my 1st Target of Rs.18. Book some profits and wait for dips to enter.

#The stock of Parshnath Developers Ltd (Rs.13.70) moved to Rs.13.80. The company came up with satisfactory March quarter results. Accumulate for targets of Rs.17/22. 

#The scrip of J P Associates Ltd (Rs.9.92) made an intraday high of Rs.10.25 yesterday. Accumulate for targets of Rs.17/19.

#Accumulate the shares of Eros International Media Ltd (Rs.19.52) near the CMP. T: Rs.27/32, which it should reach before Durga Pooja.

 Swan Energy Ltd (Rs.618.65): Buy

Target: Rs.1000+

Time: 9 to 12 months.

One of the most influential businessmen in NaMo's India is someone you likely haven't heard of much. If you search for Nikhil V. Merchant online, you'll struggle to find a photograph, profile, interview, or even a quote from the entrepreneur in his fifties. However, his close ties with Narendra Modi are well-known among the top ranks of the Bharatiya Janata Party (BJP) and its government in Delhi. Photo: Instgram.

While other corporate giants make headlines, the promoter of a relatively obscure company, who is believed to have Midas touch, Swan Energy Ltd, is genuinely enjoying "Achche Din" as public sector firms eagerly seek to do business with him. Swan is led by Nikhil Merchant and his father-in-law, Navinbhai Dave, who purchased it from the Goenka group in 1991.

Swan Energy Limited is an Indian business enterprise that operates in the petrochemical, textile, real estate, and energy industries. Textile, Energy, Building/Others, Distribution & Development, Warehousing, Manufacturing, and Power Generation are some of its segments.

Swan Energy's diversified business verticals include Oil & Gas, Petrochemical Manufacturing & Trading, Textiles, and Realty. Its business segments encompass Textile, Energy, Construction/Others, Distribution & Development, Warehousing, Manufacturing, and Power Generation.

Swan Energy Ltd (Rs.618.65) earlier this year raised Rs.3,000 crore from qualified institutional placement of shares, priced at Rs.670 apiece, this is at a premium of ~7.50% with respect to CMP. 

In March, 2024, its natural gas business arm Swan LNG Pvt Ltd prepaid Rs.2,206 crore of loan taken from a consortium of lenders. Post-prepayment, Swan LNG's debt has come down to Rs.1,611 crore and the firm will save around Rs.250 crore in interest cost annually.

Reliance Naval and Engineering Limited (R-Naval) is an Indian company based in Mumbai that builds ships and heavy industrial equipment. It used to be called Reliance Defence & Engineering Limited, Pipavav Shipyard Limited, and Pipavav Defence & Offshore Engineering Limited. The company is working on getting listed again on both stock exchanges.

In March, 2024 Swan Energy announced that in accordance with the order of the Hon'ble NCLT, Ahmedabad Bench dated 23 December 2022, issuance of 1 equity share for every 275 equity shares held by the existing shareholders of RNEL (Reliance Naval and Engineering Ltd) is completed. RNEL is in the process of obtaining the RELISTING approval from the stock exchanges and has made the required payments as demanded by the exchanges. The final listing approval is under consideration of the exchanges. Once the listing of RNEL is done tentatively by August, 2024, the value will unlock.

This acquisition is a strategic move for the company, positioning itself as major player in the commercial and Naval Vessel manufacturing and ship repair company in India. It is poised to become the largest private entity in its domain of operations in India. Moreover, according to my sources, there's a high chance of RNEL getting contracts for making  WAR SHIPS as it is a highly sophisticated company. 

It is to be remembered that Swan Energy is a strategic investor of Successful Resolution Applicant (SRA), i.e., Hazel Mercantile (HML), through a Special Purpose Vehicle, namely Hazel Infra (HIL), to acquire Reliance Naval & Engineering.

In a significant development, in August 2016, India's major public sector oil companies, ONGC, IOC, and HPCL, backed Merchant's favored project—an LNG terminal at Jafrabad port in Gujarat. These three firms reserved 60% of the terminal's capacity, which is a floating storage regasification unit (FSRU). Additionally, the Gujarat government company GSPC reportedly booked 1.5 MT of the terminal's capacity. These offtake agreements have made the LNG venture almost risk-free for Nikhil Merchant.

I am not aware of the final status of its Rs.5600 crore (Rs.56 billion) Floating Storage and Regasification Unit-based liquid natural gas (LNG) import terminal at Jafrabad in Gujarat, but last time I read somewhere that it is in the final stages of completion. This is a massive venture and could alone take the scrip above Rs.1000.

In 2022, Swan Energy, the manufactures and markets cotton and polyester textile products in the country expanded the capacity of its Ahmedabad plant to 3 million metres per month. 

The business aims to tap into retail and export markets in areas including Latin America, South Africa, Vietnam, Bangladesh, Sri Lanka, and the US.

Flip side: Probably, the only notable controversy involving Swan occurred in March 2009, when the Gujarat government under Narendra Modi decided to transfer a 49% stake in the Gujarat State Petroleum Corporation’s Pipavav Power Company Ltd (GPPL) to Swan Energy for Rs.381 crore.

 Today's Calls

#You can take fresh entry at Paytm Ltd near the CMP of Rs.404.75, T: Rs.441, SL: Rs.392. 

There are media reports about Zomato Ltd (Rs.195.50) being in talks with Paytm for acquiring the latter’s movies and event ticketing business. Both the companies confirmed the development but said that the talks were at preliminary stages and no binding agreement was signed. This if happens will be a win - win situation for both the companies. If you remember, I recommended Zomato Ltd near Rs.53, which turned out to be a multibagger. There is rumour of Gautam Adani group, in talks with Paytm Ltd to take a substantial stake in the company.

The Economic Times reported on June 16, 2024 that Zomato is looking to acquire Paytm’s movie booking and events unit, in a deal that may value Paytm’s vertical at around Rs.1,600-1,750 crore. Post the addition of receivables from cinema exhibitors, the valuation could go up to Rs.2,000 crore, according to that report.

#The stock of Indowind Energy Ltd (Rs.25.45) is clocking huge volume today. In the NSE, the volume of shares traded has crossed 18 lakhs. Something could be cooking in the counter. Keep watch.

#The scrip of Vodafone Idea Ltd (Rs.17.10) is getting resistance around Rs.17.40. Unless the shares closes above this level, it might consolidate around the current ranges. Keep SL of Rs.16.70.

#The cost cutting measures of Zee Entertainment Enterprises Ltd (Rs.155.45) should etch a better fundamentals for the company. The company has already turned positive in the March, 2024 quarter. This positive momentum is expected to continue in future. You should keep it in your portfolio, as it rumoured to be closely associated with the BJP government. Target: Rs.197. Photo: Live Law.

#The stock of J P Associates Ltd (Rs.10.74) made an intraday high of Rs.10.94, clocking a huge volume of 68.45 lakhs. Accumulate!

#Meanwhile, Parsvanath Developers Ltd (Rs.13.26) came out with satisfactory set of March, 2024 quarter results.

💢Consolidated net loss of Rs.307.37 crore in Q4FY24 Vs Rs.421.18 crore in Q4FY23, showing an improvement on Y - o - Y basis.

💢However, an elevated Finance cost of Rs.223.46 crore in Q4FY23 Vs Rs.106.37 crore in Q4FY23 is a matter of concern.

💢Fall in sales should not be of much concern for a construction company, because it will deliver when its project gets completed. Hold!! 

 Today's Call

#Accumulate the shares of Zee Entertainment Enterprises Ltd near the CMP of Rs.155 for targets of Rs.170 and Rs.197.The short term correction seems to be over in the scrip. 

#The shares of Sarthak Industries Ltd (Rs.25.50) have not moved up since a long time. This quarter results of the company is expected to be better than Q4FY24.

#Accumulate the shares of Eros International Media Ltd (Rs.20.68) near the CMP for targets of Rs.27/31. The season of the media sector has already kicked off.

#The stock of IDFC First Bank Ltd (Rs.83.40) made an intraday high of Rs.83.94. The stock was recommended around Rs.78 on Twitter (X) last week.

#Buy the shares of Parsvanath Developers Ltd (Rs.14) for short term targets of Rs.19/21. If you remember, I have been recommending the scrip since it was around Rs.7/8.

In the Q3FY24 the company came out with good results. The topline increased by 223.41% & the loss decreased by 89.75% YoY. As compared to the previous quarter the revenue grew by 83.1% and the loss decreased by 77.98%.

Parsvanath Developers Ltd has informed the BSE that the meeting of the Board of Directors of the Company is scheduled on 20/06/2024 ,inter alia, to consider and approve The Audited Financial Results of the Company (both Standalone and Consolidated) for the Quarter and Financial Year ended March 31, 2024, and Recommend dividend, if any, for the Financial Year 2023-24.

#The shares of Indowind Energy Ltd (Rs.26.10) hit the Upper Circuit. I have been advocating a buy on the scrip since some time.

#In a significant development Vodafone Group plans to sell an almost 18% stake in India's Indus Towers for up to $ 2 billion (~Rs.16,500 Cr). This is a significant increase from the approximately 10% stake they initially intended to sell. 

The telecom company, holds 21.50% stake in Indus Towers. It is planning to use the proceeds from the sale to repay debt, according to a report by Reuters.

Moreover a tariff hike of ~20% by telecom Companies can come at any time.

Thus the revised target of Vodafone Idea Ltd (Rs.16.54) is Rs.32.

#My recently recommended Dhanlaxmi Bank Ltd (Rs.44.88) hit the Upper Circuit. It is one of the finest banks from South India.

#Accumulate the shares of J P Associates Ltd (Rs.10.80), for targets of Rs.21/25, as now NCLT will speed up the process of the sale of cement division.

 Today's Call

Buy the shares of Jaiprakash Associates Ltd (J P Associates Ltd) near the CMP of Rs.11.21, for short term targets of Rs.19/21. SL: Rs.9.70.

Founded by Jaiprakash Gaur, the group experienced rapid growth from 2000 to 2006, benefiting from surges in real estate and infrastructure. Jaypee Power Ventures Ltd and the group’s engineering and construction arm, JP Associates Ltd, saw their revenues increase significantly, with annual growth rates of 26.92% and 32.08%, respectively, from 1999-2000 to 2014-15. However, during this period their debts also grew substantially, increasing by 40 times and 20 times, respectively.

Recently, the Allahabad bench of the National Company Law Tribunal (NCLT) directed initiation of insolvency proceedings against debt-ridden Jaiprakash Associates (JAL). The insolvency plea against the company was filed by ICICI Bank and State Bank of India in 2018 and 2022 respectively.

Pronouncing the order, a two-member NCLT bench, comprising members Praveen Gupta and Ashish Verma also appointed an interim resolution professional (IRP). Photo: Just Dial.

Reduction or Debt: The company has been selling its cement plants to reduce debt. In December 2022, Jaiprakash Associates (JAL) and Dalmia Bharat had signed a framework for the acquisition of JAL's cement, clinker and power plants for an enterprise value of Rs.5,666 crore. In April 2023, a definitive agreement was signed between Dalmia Bharat and JAL to acquire the cement business as per the announcement.

Out of its substantial debt of ₹29,805 Cr, JP Associates (Rs.10.80) plans to transfer ₹18,955 Cr to a SPV. This transfer, which is part of a Scheme of Arrangement, awaits approval from the NCLT and has already been endorsed by all relevant stakeholders.

In order to reduce its debt, J P Associates Ltd in November last year, announced a deal to transfer about shares worth Rs.360 crore to ICICI Bank under a settlement agreement.

The company is thus slowly cutting down its debt and currently it needs around Rs.5000 crore to clear off the NCLT mess, which I believe is achievable, without much hassles.

I feel this NCLT move might speed up the process of Cement division sale, which is struck up since 2022.

Coffee Day Enterprises Ltd (Rs.57.30): Buy

Coffee Day Enterprises Ltd (Rs.57.50) is engaged in the trading of coffee beans. The company owns and operates a resort and renders consultancy services. It is also engaged in the coffee business which ranges from procuring, processing and roasting coffee beans to retailing coffee to domestic and overseas customers.

Coffee Day Enterprises Ltd has seven subsidiaries:

💢Coffee Day Global, 

💢Tanglin Retail Reality Developments, 

💢Tanglin Developments, 

💢Giri Vidhyuth (India), 

💢Coffee Day Hotels & Resorts, 

💢Coffee Day Trading and 

💢Coffee Day Econ.

As per media reports, Prashant Jain, the former MD and CEO of JSW Energy, has bought a stake in in Coffee Day Enterprises Ltd, through his personal fund Tikri Investments. He picked up 40 lakh shares, translating to 1.89% stake in the company. The shares were bought at Rs.70.94 apiece, which is much higher than the CMP. Photo: Business Today.

 Today's Calls

India's retail inflation, though exceeded the central bank's target of 4%, has remained within the 2-6% tolerance range for nine consecutive months. Last week, the RBI maintained the policy rate at 6.5%, indicating that interest rate cuts may be delayed as the central bank waits for inflation to stabilize.

According to data from the statistics ministry, retail inflation based on the consumer price index (CPI) dropped to 4.75% in May from 4.83% in April, marking the lowest rate in a year. This moderation was driven by slower price rises in food items like meat, fish, dairy products, vegetables, and spices. Inflation has remained below 5% since March.

Food inflation, which constitutes nearly 40% of the overall consumer price basket, rose 8.69% year-on-year in May, slightly down from 8.70% in April. Food prices have remained high for over a year, largely due to last year's uneven and below-normal monsoon rains. Food inflation has consistently stayed above 8% since November.

Last week, the Reserve Bank of India (RBI) kept the benchmark repo rate unchanged at 6.5%, signaling that interest rate cuts might be delayed. However, Interstingly two monetary policy panel members advocated for a rate cut and a change in monetary stance. The RBI last raised the repo rate to 6.5% in February 2023 and has kept it unchanged since then.

Regulating interest rates is a crucial tool for the central bank to control inflation. Higher interest rates make borrowing more expensive, reducing demand among banks, financial institutions, and the general public, which can decrease consumer spending and inflation.

Meanwhile, the factory output rose 5% in April, up from 4.9% in March and 5.6% in February, following an eight-month low of 2.5% in November. For the April-March (FY24) period, factory output grew by 5.9%, slightly surpassing the previous year's 5.2% growth.

India's economy expanded by an impressive 8.2% in FY24, driven by a 7.8% increase in the January-March quarter, defying fears of a slowdown as manufacturing, electricity, and construction sectors thrived. This strong fourth-quarter growth meant that the actual GDP growth for FY24 exceeded the National Statistical Office's forecast of 7.6%. Fortunately, for FY25, the RBI estimates economic growth at 7.2%.

#Since retail inflation is more or less stable, so while buying stocks we need to focus on rate sensitive sectors like: Real Estate & Construction, Banks & NBFCs, Auto & Auto components, etc. I have already recommended one stock from the banking sector. 

#The stock of Vodafone Idea Ltd (Rs.16.50) is getting bounced from Rs.16.70. For the time being the short term traders can book some profits and re - enter when the scrip closes above that resistance levels. The long term investors can however, hold the stock with a SL at Rs.16.25.

#If food inflation is the problem then you need to buy the scrips from this sector.

#Indowind Energy Ltd (Rs.25.25) hit another Upper Circuit today, before cooling down a bit. The company should do well in the coming days in view of reduction of debt and capacity expansion. 

#There is an excellent news for the shareholders of Debock Industries Ltd (Rs.7.80). 

According to my close sources the company could start mining GRANITE tentatively from July, 2024.

Also, as per some highly placed sources who refused to be named, the shareholding pattern of the company is all set to improve through a REVERSE MERGER of a group company. This is a very encouraging news for the shareholders and could alone push the scrip above Rs.30.

#Those who are still holding or have taken fresh entry into the shares of my recently recommended Paytm Ltd (Rs.402), can hold the same with T: Rs.420 and SL: Rs.392.

#You can start accumulating the shares of Eros International Media Ltd (Rs.20.60), T: Rs.32, SL: Rs.17.

#But the shares of IDFC First Bank Ltd near the CMP of Rs.77.91, T: Rs.88, SL: Rs.76. 

#Buy the shares of Coffee Day Enterprises Ltd (Rs.59) near the CMP for targets of Rs.72/Rs.77, SL: Rs.56. 

In the middle of April, 2024, there was media report that Prashant Jain, the former MD and CEO of JSW Energy, had bought a stake in in Coffee Day Enterprises. Through his personal fund Tikri Investments, Jain picked up 40 lakh shares, translating to 1.89 percent stake in the company. The shares were bought at Rs.70.94 apiece.

#Those who are holding the shares of Rajesh Exports Ltd (Rs.285) can start averaging, as I feel the company in all likelihood, will start manufacturing Lithium-ion batteries from this fiscal. 

I feel the Bottomline fell more due to money being diverted to battery making plant. Once the Lithium Battery comes in the market the stock will cross Rs.1000, as it will be a huge business opportunity, apart from its current verticals. Photo: Swarajya 

 Today's Call

Buy the shares of Dhanlaxmi Bank Ltd near the CMP of Rs.42.50, T: Rs.47, SL: Rs.37. 

A non-performing asset (NPA) is a debt that remains overdue and unpaid for a specified duration. 

Trendlyne Data reports that in Q4FY24, Canara Bank, Punjab & Sind Bank, Bandhan Bank, and Central Bank of India experienced the most significant reductions in NPAs. The net NPA ratio of Dhanlaxmi Bank stood at 1.25% in Q4FY24, Vs 1.27% in Q3FY24.

Dhanlaxmi Bank recorded a net profit of Rs.57.82 crore for the financial year that ended on March 31 (FY24) against Rs.49.36 crore in net earnings received in the previous year. The operating profit for the period came to Rs.69.26 crore.

Total business reached ₹24,687.21 crore from ₹23,205.38 crore, registering a growth of 6.39 per cent. Total Deposits reached ₹14,290.31 crore from ₹13,351.65 crore, a growth of 7.03 per cent. CASA’s share of total deposit was 30.66 per cent.

Retail term deposits registered a growth of 9.17 per cent to reach ₹7,189.75 crore from ₹6,586.01 crore.

Business growth and growth in retained earnings lead to an increase in balance sheet size by 5.49 per cent from ₹15,132 crore to ₹15,962 crore. Earnings per share was ₹2.29. Book Value of shares was ₹40.70 and market capitalization improved from ₹365.60 crore to ₹1,043.67 crore.

In March, the bank’s board approved a rights issue to raise Rs.300 crore. Photo: CNBC TV18.

The recent 15% rise in edible oil prices in May is poised to bolster the financials of Companies like: Adani Wilmar, Emami Agrotech and Sunvin Group. 

Introduction: The present surge in prices of edible oils can be attributed to a confluence of factors affecting both domestic production and international supply chains. Given that India relies on imports for around 60% of its edible oil requirements, the volatility in the global market has significant repercussions on local prices.

India's dependence on imported edible oils such as palm oil, soybean oil, and sunflower oil is substantial, with these oils constituting a major portion of the market. 

Causes: Soybean oil shipments from Brazil and Argentina have encountered significant disruptions due to floods in Brazil and labor strikes in Argentina. Consequently, soybean oil prices have increased by Rs.3-4 per liter. Annually, India needs to import approximately 30 lakh tonnes of soybean oil to meet its demands.

The domestic market for mustard oil is also experiencing a price hike, driven by the extensive procurement of mustard seeds by the National Agricultural Cooperative Marketing Federation of India (NAFED) and the Haryana State Co-operative Supply and Marketing Federation (HAFED). 

Additionally, farmers are withholding their mustard seed stocks, anticipating further price increases, which has resulted in a 15% rise in mustard oil prices.

India's sunflower oil imports, predominantly sourced from Russia and Ukraine, face potential future disruptions due to adverse climatic conditions in these countries. Although it is not currently the season for sunflower oil supply, the anticipated impact of high temperatures on crop yields could exacerbate the situation.

The increased use of palm oil for biodiesel production in Indonesia and Malaysia has also constricted its availability on the global market, pushing up prices further. Indonesia's biodiesel mandate program, which allocates 13.4 billion liters for 2024, has contributed to this trend by maintaining a high blending rate. Palm oil, which makes up 38% of India's edible oil consumption, is thus significantly impacted by these international policies and production trends.

Moreover, the global production of palm oil experienced a seasonal low from January to March, resulting in reduced stocks and affecting both production and imports. 

Indonesia’s palm oil production forecast for 2023-24 stands at 45.8 million tonnes, slightly up from the previous year’s 44.7 million tonnes. 

While soybean oil imports from South American countries have not yet been affected, geopolitical tensions and rising freight rates could pose future challenges for sunflower oil imports from Ukraine and Russia.

Historically, restrictions on palm oil exports by Indonesia and the Ukraine-Russia war had caused a surge in edible oil prices in India. However, a subsequent cooling of prices last year led to increased imports. Companies that capitalized on this price differential by importing large quantities of oil stand to benefit the most from the current price rise.

Furthermore, the growing trend of eating out and the rise in online food purchases have contributed to increased per-capita consumption of edible oil in India. This consumer behavior shift is another factor underpinning the recent price hikes.

Conclusion: The rise in edible oil prices is driven by a complex interplay of global supply chain disruptions, domestic market dynamics, and changing consumer behaviors. 

If the price rises sustains, then companies like Adani Wilmar Ltd (Rs.343)Emami is likely to see improved profit margins. 

However, the sustained high prices pose challenges for consumers and highlight the need for strategic management of both imports and domestic production to stabilize the market. Photo: Business Bar

Q. Why the shares of Adani Wilmar Ltd (Rs.345) didn't perform too well in the recent past and how its future look?

Ans. I feel it fell primarily due to a couple of reasons, apart from other factors.

💢Adani Commodities and Lence Pte had to divest a part of their shareholding between December 26 to January 31, 2024. The two promoter entities of Adani Wilmar planned to sell up to 1.6 crore shares or 1.24% stake in the company as part of the programme to meet the minimum public shareholding norm prescribed by the SEBI. When such huge supplies come in the market all of a sudden, shares of the company are likely to fall. 

💢The company was not doing well till the September quarter due to sudden fall in inventory valuations. 

Now, the 1st episode is over, while the edible oil prices have stabilized in the international markets. 

However, according to the Economic Times, the companies like Adani Wilmar Ltd (Rs.343.50), Emami Agrotech and Sunvin Group said while disruption of Soyabean oil supplies, from Brazil and Argentina is driving up prices, mustard oil prices have risen as NAFED and HAFED have purchased large quantities of mustard seeds.

Also, the company has turned around in the last quarter and future looks bright due to NDA government coming at the center with which it has an umbilical cord relationship.

Also, due to ensuring Festival Season, the demand for edible oil and other FMCG products are set to increase. 

Incidentally, valuing a company solely by its P/E ratio is incorrect, particularly for a growing company like Adani Wilmar, which has a vast reach and numerous factories. Photo: Equity Bulls.

Buy at the CMP of Rs.345, T: Rs.700+, SL: Rs.311.

 Today's Call

Buy the shares of 63 Moons Technology Ltd near Rs.343/Rs.344, T: Rs.441, SL: Rs.331. 

According to The Times of India:

"Jignesh Shah, a notable figure in the tech industry, is making a significant comeback with a focus on new-age technology ventures. Recognized for his past disruptive contributions such as ODIN, MCX, and Energy Exchange, Shah is now poised to explore innovative tech businesses.

Leveraging the momentum of the current tech wave, Shah's promoted company, 63 Moons (formerly Financial Technologies), is diversifying into cybersecurity, blockchain, and legal tech sectors.

Expressing his aspirations, Shah highlighted his desire to establish India's first set of technology "decacorns," aiming for significant growth in these new ventures. Collaborating with global players like Blackberry, Resecurity, and Morphisec, 63 Moons' cybersecurity venture is making strides in introducing new products and services". 

Financials: The Net profit of 63 Moons Technologies came to Rsm8.02 crore in the quarter ended March 2024 as against net loss of Rs.23.78 crore during the previous quarter ended March 2023.

However, sales declined 66.42% to Rs.37.44 crore in the quarter ended March 2024 as against Rs.111.51 crore during the previous quarter ended March 2023.

Impressive Performance in FY24: For the full year, net profit came as Rs.222.51 crore in the year ended March 2024 as against net loss of Rs.16.31 crore during the previous year ended March 2023.

Sales rose 62.86% to Rs.471.76 crore in the year ended March 2024 as against Rs.289.68 crore during the previous year ended March 2023. Photo: Daily Mint.

Adani Wilmar Ltd (Rs.343.20): A screaming Buy:

Adani Wilmar Ltd (AWL), incorporated in 1999 as a 50:50 joint venture between the Adani Group and Singapore’s Wilmar International is among the largest FMCG companies in India. Photo: Loksatta.

By leveraging Adani Group’s extensive port network connectivity and Wilmar’s sourcing capabilities and technical know-how, Adani Wilmar has become the leading edible oil producer in India. 

It is known for its wide range of offerings in edible oils comprising soya bean, sunflower, mustard and rice bran, among others under its well known “Fortune” brand. The company has 23 plants in India, which are strategically located across 10 states, comprising 10 crushing units and 19 refineries. 

Adani Wilmar Ltd is a leader in the edible oil segment and commands a market share of ~18.7% through its Fortune & other brands. Apart from the oil segment, it also offers products like wheat flour, rice, pulses & sugar under its different brands across a broad price spectrum.  Broadly speaking, its product portfolio spans across 3 - categories: 

💢Edible oil, 

💢Packaged food and, 

💢FMCG & industry essentials with further subcategories in the above three categories.

Triggers: 

💢Since Adani Wilmar is a joint venture between the Adani group and Wilmar group it enjoys the backing and networks of the Adani group. 

💢It also has access to Wilmar group’s global sourcing capabilities and technical know-how.

💢It has successfully managed to develop its “Fortune” brand in the edible oil category with leadership position in the last 20 years.

💢With strong brand recall value under its belt, the company has also leveraged the ‘Fortune’ brand to offer a wide array of packaged foods since 2013, including packaged wheat flour, rice, pulses, besan, sugar, soya chunks and ready-to-cook khichdi.

💢The company is one of the FMCG players to enjoy pan-India coverage with its huge distribution network comprising 5,500 - plus distributors across 28 states and eight union territories throughout India catering to over 1.6 million - plus retail outlets.

💢AWL has 23 manufacturing units in India, which are strategically located across 10 states, comprising 10 crushing units and 19 refineries. 

Out of the 19 refineries, 10 are port-based to facilitate use of imported crude edible oil and reduce transportation costs. The remaining are typically located in the hinterlands in proximity to raw material production bases to reduce storage and transportation costs. 

In addition to the 23 plants, it also uses 36 leased tolling units in India, which provide additional manufacturing capacities.

💢Additionally, AWL enjoys strong competitive advantages due to its ability to engage in price-ladder supported by multiple synergies across all three business segments along with access to Wilmar’s market intelligence, which augurs well for the scale-up of its FMCG business.

💢The company exports its products to Middle East, Africa and South East Asia.

💢In Mundra, AWL operates India’s largest single-location refinery, which has a designed capacity of 5,000 TPD. Wilmar International, a global leader in edible oils enjoys a significant leverage in price negotiations and raw material allocation. Adani group on the other hand owns India's largest private sea - port ensuring seamless supply of raw materials to AWL's facilities in India.

💢AWL is also the largest basic oleochemical manufacturer in India. In 2020, AWL forayed ready-to-cook under its flagship Fortune brand.

💢 Recently, the Brokerage Nuvama though cut its target price to Rs.515, from Rs.600, but has maintained a buy.

💢In the near future there could be Palm Oil Shortage followed by rise in price due to Biodiesel Production: There are rumours that reduced availability of Palm oil could be due to the fact that major producers like Malaysia and Indonesia are diverting it for biodiesel production, potentially leading to increased prices.

💢The share of edible oil segment which used to command 85% of Adani Wilmar's revenues, decreased to 74% by September , 2023, making it a less affected candidate by the vagaries of edible oil prices, which is somewhat linked to crude oil prices. The crude oil prices are likely to remain firm in the coming months, as Summer Driving season begins in the US.

The current market cap of Adani Wilmar Ltd (Rs.343.45) is Rs.44,637 crore = Rs.446.37 billion = $ 5.44 billion. The stock of Adani Wilmar Ltd (Rs.343.45) is currently trading near its 52 -week low price.

According to some media reports, the promoters last year wanted to sell 44% (43.97%) stake in the company at $4 billion, which means that the promoters are looking to value the company at ~$9.10 billion.

The current media report suggest that Adani group has decided to put its plans to divest its stake in Adani Wilmar on the backburner for a while as it is not satisfied with the pricing that it is looking for.

Financials: In the September, 2023 quarter, it came up with a consolidated net loss of Rs.130.73 crore as profitability was badly impacted in the cooking oil business. The company had posted a net profit of Rs.48.76 crore in the year-ago period. But the company bounced back in December quarter. The March quarter results were even better due to stabilisation of the edible oil prices.

The FMCG company Adani Wilmar on reported 67% growth in its consolidated net profit to Rs.157 crore for the quarter ended March 2024. The same stood at Rs.94 crore in the year-ago quarter.

Revenue from operations in the reporting period though fell marginally by 5% year-on-year to Rs.13,238 crore. The company had clocked revenues of Rs.13,872 crore in the corresponding period of last year.

Segment wise, the edible oil segment recorded revenue of Rs.10,195 crore in the fourth quarter while the volume grew by 11% year-on-year.

The domestic branded sales volume grew at a faster clip at 13% Y - I - Y compared to overall growth. This is the second consecutive year with faster growth in the branded portfolio, which has resulted in the market share gains.

The food and FMCG segment recorded revenue of Rs 1,341 crore in Q4, with an underlying volume growth of 9% year-on-year.

The overall food and FMCG revenue increased 23% year-on-year resulting in revenues of Rs.4,944 crore. The revenue from branded products in the domestic market has been growing consistently YoY at over 30% for the last 10 quarters.

The company has also been gaining market share in its key products. In edible oils, ROCP (Refined Oil Consumer Pack) market share of AWL has increased by 60bps to 19.0% on MAT basis. In Wheat Flour, its market share has increased by 60bps to 5.60%.

Conclusion: Despite global challenges such as the Russia-Ukraine war, fluctuations in edible oil prices, and inflation worries, it has sustained its margins. The company is projected to increase its market share due to deeper penetration in rural markets and entry into high-margin packaged products. Additionally, the demand outlook is favorable, driven by the ensuring festive season and increased rural demand from the monsoon.

The management is bullish on the future prospects of AWL, as it is witnessing a robust growth in both edible oil and food and FMCG businesses since the beginning of this financial year (2024-25), particularly in May. Comfortable prices, elections, and harvest-related migration to hometowns is set to  boost rural demand for company's products.

As of 03 May, 2024, out of 4 analysts covering the company, 2 analysts have given a Sell rating, 1 analyst has given a Buy rating, and 1 analyst has given a Strong Buy rating, showcasing a mixed sentiment among analysts.

I am bullish on the future growth of the company due to continuation of government policies, since the BJP and its allies returned in Delhi in the recently concluded Lok Sabha polls.

Thus, looking at the current fundamentals and with suitable discounting the fair value comes around Rs.500 - Rs.550. Also, there was no official statement from the company, regarding its stake sale, raising the possibility of another market rumors.

 Market Mantra

#Buy the shares of Adani Wilmar Ltd near the CMP of Rs.347 for targets above Rs.400, since the 4th quarter of FY25 is expected to be better than Q3FY24.  SL: Rs.330.

The good news is that the union government had some months back allowed the import of edible oils at lower tax rates until March 2025.

The price of the shares of Adani Wilmar went down due to sudden drop in the price of Palm oil which is affected by price movements in related crude oils; as they compete for a share in the global vegetable oils market. Weaker crude oil futures make palm a less attractive option for biodiesel feedstock. However, this is past and the company has turned around in the last quarter.

In the recent months the signs of weakening demand growth, and Eight OPEC+ members led by Saudi Arabia and Russia saying they would start phasing out 2.2 million barrels per day in production cuts beginning in October, was the primary cause of fall in Brent Crude prices.

Under the plan, more than 500,000 bpd of crude oil would return to the market by December, and 1.8 million bpd would come back by June of 2025. 

However, there's a silver lining: if at the end of August, fundamental picture looks worse than what we have now, they would pause that addition. So, there's less chance of crude oil going too low from the current market price.

Incidentally, when OPEC+ took the decision it did over the weekend, in a reasonably well-supplied crude market, traders factored in the macro picture alongside a dwindling risk premium, with talk of a ceasefire in Gaza, this actually pushed down the crude oil price. 

Meanwhile, an aide to the Israeli prime minister confirmed on Sunday that Israel had accepted a framework deal for winding down the Gaza war, although the Israeli side called it a flawed deal.

Now the data on U.S. fuel consumption is in focus to chalk the future trajectory of crude oil, especially in light of the start of summer driving season. 

Hence, I feel the brent should rebound and settle above $80 per barrel, triggering a price hike in Palm oil. 

Anyway, Adani Wilmar, is into the manufacturing and selling of cooking oil. Fortune”, its flagship brand, is the largest selling edible oil brand in India. Adani Wilmar is one of the fastest growing packaged food companies in India. Mundra is the one of the largest single location refineries in India with a designed capacity of approximately 5,000 tonnes per day.

#Regarding the domestic stock markets, my personal opinion is that though the Sensex is down 2193 points, but the NDA alliance is comfortably above 272 mark. Thus initial trend do indicate the formation of the next government at the centre by the NDA, albeit with less MP strength. But this will give more teeth to the opposition parties, which is good for democracy. 

#Adani and Ambani group companies would continue to dominate for the next 5 - years. Hence, use dips to buy good stocks.

 Market Mantra

#Buy the shares of P C Jewelers Ltd at Rs.47.70. T: Rs.61, SL: Rs.41. 

Last month P C Jewelers Ltd informed the Exchanges that its board has approved a proposal to raise Rs.2,000 crore through rights issues and preferential allotment of fully convertible warrants. As per media reports, its board has formed a dedicated 'fund raising committee' to decide on the details. 

#Indowind Energy Ltd's (Rs.22.10) Q4FY24 results beat market expectations. Indowind Energy came out with net profit of Rs.61.50 lakh for the March, 2024 quarter. It had posted a loss of Rs.25 crore in the year-ago period. The company's total income shot up to Rs.4.01 crore in the January-March period from Rs.3.93 crore in the same period a year ago. The stock should slowly move towards Rs.41/42, since the following quarter results are likely to be better, due expansion of capacity and reduction of debt.

#Diagnostic Stocks would continue to do well. All my counters, Metropolis Healthcare (Rs.1914.55) Vijaya Diagnostics Ltd (Rs.801.10) and Nidan Laboratories Ltd (Rs.33.85) are up from the Recommended prices.

#The stocks of Zee Entertainment Enterprises Ltd (Rs.152.65) made an intraday high of Rs.160.20. If you are betting for Adani Group, then you can take a look at the Zee group, too. Photo: Live Law

Market Mantra

Buy FCS Software Solutions Ltd (Rs.3.85). T: Rs.7, SL: Rs.3.30.

Financials:

Net Sales of the company came at Rs.9.60 crore in March 2024 up 15.79% from Rs.8.29 crore in March 2023.

Quarterly Net Loss stood at Rs. 1.13 crore in March 2024 Vs Rs.0.13 crore in March 2023.

However, EBITDA stood at Rs.10.74 crore in March 2024 up 445.18% from Rs.1.97 crore in March 2023.

#Book profit in Paytm Ltd (Rs.391). We can again enter later. However, the long term investors can put a SL at Rs.377.

#Debock Industries Ltd (Rs.8) was scheduled to declare March quarter results on 30 May, 2024. But according to my sources, it will probably be declared after 4 June, 2024. 

Additionally, according to my close sources though the company at present is not facing any financial bottleneck and is doing well, but the falling promoter holding from 34.15% in December, 2023 quarter to 9.41% in March, 2024 quarter do raise some concerns. However, there's some silver lining in the cloud which I'll let you know in due course of time. 

Presently, if you are contemplating to take fresh positions, do that only after viewing the March, 2024 quarter results.

#Accumulate the shares of Zee Entertainment Enterprises Ltd (Rs.149.45) for targets of Rs.167/Rs.176.

Zee Entertainment posted Q4FY24 revenue/EBITDA (up 2.7%/38.5% YoY) beating Nuvama’s estimates. Overall, the brokerage increased FY25E/26E revenue forecast by 1.4%/2.6% on the back of improving outlook for FMCG advertisers, but cut EPS by 19%/6% as ZEE is transitioning towards a more focused structure, entailing high one-time costs in FY25. 

Nuvama has upgraded the stock to ‘buy’ from an earlier ‘reduce’ with a revised target of Rs 180.