Winning Strokes

The India stock markets have recovered from the morning blues. The BSE Sensex was last seen trading at 61,359.93 up 51.02 points (+0.08%), while the Nifty was seen trading at 18,304.85 up 2.75 points (+0.02%). While the Nifty is likely to trade in a range, we are likely to witness a pre budget rally in the mid, small and micro cap counters. Buy good stocks and keep holding till the budget date.

#My Strongly recommended Silgo Retail Ltd hit the buyer Freeze today at Rs.41.60. the stock was recommended in this blog around Rs.33.70. I'm looking for targets of Rs.51/52.

#Buy the shares of Shriram EPC Ltd at Rs.10,  T: Rs.17/21.

There are media reports that the Shriram Group is  in talks to exit Orient Green Power Ltd (Rs.23.50). Interestingly, the Shriram Group through Shriram EPC, is currently the largest shareholder of Orient Green Power Ltd with a 49% stake in it. Hence, this value unlocking could give a huge boost to the financials of Shriram EPC Ltd. Photo: 2: MoneyControl.com

Meanwhile, the price of the shares of Orient Green Power Ltd has almost doubled in the last one month. We should see a corresponding appreciation of the share price of Shriram EPC Ltd (Rs.10). 

Earlier, there were media reports that, the Dubai-based family office Mark AB Capital will take over Shriram EPC, an engineering procurement and construction contractor and part of the financial services conglomerate Shriram group by picking up 26% stake for Rs.350 crore.

In 2017, Shriram EPC Ltd forayed into a completely new business vertical of transport engineering, by winning a Rs 71-crore order; which involved designing, manufacturing and maintaining a second ropeway at the Arulmigu Dandayuthapani Temple in Palani, Tamil Nadu that will serve 1,200 people every hour. For this it had tied up with France's Poma S.A, which has built over 8,000 ropeway installations globally, to supply technology equipment for the project.

Apart from this, the company is into sewage management, renewable energy, building metallurgical plants and in municipal services sector. Photo:1: Indiainfoline.com

There were media reports in December, 2021, that the company is looking to raise funds upto Rs.700 crore. The break - up:

• Rs.350 crores through equities.
• Rs.175 crores by compulsory convertible debentures.
• The balance, Rs.175 crores through non - convertible debentures.

#The stock of Coffee Day Enterprises Ltd (Rs.69.50) made a new 52 - week high today at Rs.73.70. If you remember the stock was strongly recommended at end of last year at Rs.29/31.

#The share of A2Z Infra Engineering Ltd (Rs.12.30) buoyed by Electric Vehicle story and RDF Technology used for waste disposal, hit the buyer Freeze today. 

Meanwhile, the Union Government has made it easier for public and private enterprises to open public charging stations for electric vehicles.

India's EV policy has evolved over time, driven in large part by rising pollution levels, the country's green commitments, and a desire to reduce reliance on crude oil imports.

The list of GoI measures that are directly or indirectly intended to further EV adoption are:

• The scrappage policy, FAME (which is currently in its second phase).
• The PLI scheme for EV components
• Allowing sales of EVs sans batteries.
• Courting bigwigs like Tesla (high import duties notwithstanding)
• Incentivising domestic battery manufacturing.
• Amending the Model Building Bye-Laws to include charging station provisions.
• Liberalisation of the electricity distribution sector.
• Encouraging fossil fuel vending outlets to have EV charging stations.
• The National Electric Mobility Mission Plan.
• GST rate cuts on EVs and batteries.
• Tax incentives on EV auto loans.
• Permit exemption for battery-operated electric vehicles (BEVs) and so on.

The new rules allow any individual or entity to set up public charging stations (PCS) without the need for a licence. This means that (1) EV owners can charge their vehicles at home or at work at domestic tariffs, and (2) public and private entities can obtain Government land to set up and operate PCS on a revenue-sharing basis.

Furthermore, a national online database of all charging stations in the country will be compiled and made available via a web portal and mobile app.

Overall, the goal is to have one PCS in every three-square-kilometer grid in major cities and every 25 kilometres on highways within the next five years.

We can therefore, look for targets of Rs.17/19/24/31/46 in the coming days. Accumulate.

#Accumulate the shares of Global Vectra Helicorp Ltd near Rs.62/63 for targets above Rs.100. 

Under the new policy, the government will establish a dedicated helicopter acceleration cell within the Civil Aviation Ministry to investigate issues affecting the helicopter industry.

As part of the policy, there will be no landing fees or parking deposits for heliports or helicopter companies.

To begin, four Heli Hubs and Training Units will be established in Mumbai, Guwahati, Delhi, and Bengaluru, and helicopter corridors will be established in 10 cities and 82 routes across the country.

Surprisingly, the share is still languishing in the T - group when there is no volume in the counter. The stock exchange regulator is requested to look into the matter and take the necessary actions.

Financials:

According to BSE website the company has a CEPS (TTM) of Rs.41.70. The total income of the company came as Rs.87.26 crore in the September, 2021 quarter as against Rs.68.13 crore in the same quarter previous year.

The net loss of the company got reduced to Rs.1.66 crore as against a loss of Rs.11.07 crore, showing a huge improvement in performance on Q - o - Q basis.

Not only that, the operating profit margin (OPM) of the company almost doubled to 22.03% in September, 2021 quarter as against 12.85% in September, 2022 quarter. 

The net profit margin (NPM) of the company improved to - 2.33% in Q2FY22 as against - 16.99% in Q2FY21, showing tremendous improvement on Y - o - Y basis.