Winning Strokes

The Indian bourses were on roll last Friday, after an Economic Times report indicated that the NDA government is examining possible changes to the capital gains tax regime to make it simpler, including rationalisation of the multiple holding periods.

The BSE Sensex closed at 61,795.04 up a massive 1,181.34 points (+1.95%) while the Nifty50 ended the day at 18,349.70 up by a whopping 321.50 points (+1.78%). 

In a significant positive development, foreign investors (FIIs/FPIs) have invested nearly Rs.19,000 crore in Indian equities so far this month, owing primarily to a slowing trend in US inflation and a weakening dollar.

On Monday, the markets are likely to consolidate around the current ranges. The future direction of the market will come from global cues and also from the current earning session.

However, since November Effect has kicked in, the investors should do well to buy momentum counters from the small, mid and micro cap space. I am bullish on Oil & Gas, Construction, Textile, Renewable Energy and Restaurant sectors.

#Coffee Day Enterprises Ltd (Rs.52.75) came up with good September quarter results. 

Net profit of Coffee Day Enterprises Ltd came at Rs.5.67 crore in the quarter ended September 2022 as against net loss of Rs.84.85 crore during 66 move towards my targets of Rs.84/91. The restaurant sector has been doing well since lifting of Nation Wide Lockdown. Accumulate in dips.

#Aban Offshore Ltd (Rs.49.60), India's largest oil exploration company in the Private Sector, came up with good September quarter numbers. 

Quarterly Net Loss of Aban Offshore Ltd came at Rs. 207.53 crore in September 2022 down 16.34% from Rs. 248.07 crore in September 2021.

This means the cost overrun or margin shrinkage through legacy orders has substantially come down in Q3FY23.

However, Net Sales were at Rs.94.88 crore in September 2022 down 32.37% from Rs.140.28 crore in September 2021.

The buoyancy in the crude oil prices and lowering of the number of low value legacy orders will take the scrip to Rs.71/72. Remain Invested.

#I have recommended the share of the Tata Group Company, Tata Teleservices Ltd (Rs.100.30) on last Friday at around the CMP for long term targets of above Rs.250.

According to a Business Standard report, the Tata Group Company, Tata Teleservices Ltd (Rs.100.30), is restructuring its telecom business, which is spread across various companies, by making additional investments in Tata Teleservices and exploring opportunities in 5G-based segments by providing back-end services.

It is pertinent to mention here thar in June, 2022, the NDA government at the centre allowed enterprises to set up captive non - public networks to buy 5G spectrum directly from the DoT, in order to establish their isolated networks.

Meanwhile, while Tata Teleservices continues to focus on enterprise businesses, the group has brought in Tata Communications to provide 5G-based services such as automated equipment quality inspection, inventory management, and asset tracking. Although the group sees 5G as a significant opportunity, it has refrained from purchasing the more expensive 5G spectrum. However, to stay in the game, it will most likely focus, on value-added services.

#Dilip Buildcon Ltd's (Rs.224.45) debt is nothing as compared to Tata Steel. At the end of the June quarter Tata Steel had a gross debt of ₹82,597 crore and net debt of ₹54,504 crore. As of March, 2022, the total debt of Dilip Buildcon (Rs.224) was Rs.8,783 Cr. While Reserves & Surplus was at Rs.4189.92 Cr.

The company has an order book of Rs.25,000 - plus crores. It is a blue chip company from the construction space and is rumoured to have some connections (invisible hand) with the current Madhya Pradesh government.

The HDFC Securities has already provided a target of Rs.369 for the scrip. However, I feel it will slowly move towards Rs.500 - plus, as the cost overruns or margin shrinkage from legacy projects comes down from this quarter. Accumulate!!

#Accumulate the shares of Orient Green Power Company Ltd (Rs.8.60) and RTN Power Ltd (Rs.4.20) because of the commencement of November Effect.