Winning Strokes

The trading pattern of the Singapore stock exchange's SGX Nifty suggests that the Nifty could open with a 40-point gap up. Overseas, Asian equities are up on Monday on expectations that the Federal Reserve would stop rate hikes this month following a mixed US jobs report, while crude oil jumped after Saudi Arabia vowed significant output cuts in July. You now have to pick up good small and mid cap stocks for the upcoming June - September rally. Photo: Equity Bulls.

#The stock of Zomato Ltd (Rs.71.15) made an intraday high of Rs.73.20. With this move all the short term targets have been achieved. Book profits and wait for dips to enter.

#The stock of Dhani Services Ltd (Rs.34.35) is consolidating at the current ranges. One of companies, Yaari Digital Integrated Services Ltd (Rs.12.90), whose promoter is Sameer Ghelaut, hit the upper circuit last Friday. This is expected to give a positive rub off to the shares of Dhani Services Ltd, since Dhani Services Ltd (Rs.34.35) also has Sameer as the promoter. Keep accumulating for targets mentioned in Twitter and Facebook.

Wikipedia: Sameer Gehlaut (born 3 March 1974) is an Indian businessman. He is the founder and chairman of the Indiabulls Group, a diversified financial services group with businesses in housing and consumer finance through independent and listed companies in the Indian stock exchanges.

Sameer Gehlaut's Indiabulls Housing Finance is India's second biggest mortgage lender. An engineer from India's elite Indian Institute of Technology, Delhi, Gehlaut started online brokerage Indiabulls with two college pals in 1999. Gehlaut took the company public in 2004 and moved into real estate scooping up prized land in Mumbai in public auctions. Gehlaut is building a Mandarin Oriental hotel in London's Mayfair area.

Dhani offers a range of products across both fintech and healthtech services. On the financial services front, customers can choose from a suite of products to help manage all their financial needs on a daily basis. Dhani is also home to an online store through which customers can get their hands on all daily need items. Its other financial services include investing, trading, and growing their wealth through smart stock broking solutions.

#There were news reports that Prestige Estates has bought out DB Realty Ltd's (Rs.84.10) stake in two ventures that are engaged in real estate projects in Mumbai, for ₹1,176.5 crore.

In DB Realty, Rekha Jhunjhunwala, wife of the late investor Rakesh Jhunjhunwala, hold about 1.4 per cent stake.The stock should cross Rs.100 in the near future as it's debt has come down to ₹976.54 crore. Hold with a SL of Rs.76.

#The share of A2Z Infra Engineering Ltd (Rs.8.15) which is into two happening sectors like Waste Management and erection of Telecom Towers, could be accumulated for targets of Rs.12/14. The 5G telephony service requires lot of telecom towers, especially in cities. Hence, the demand for telecom towers will continue to see an upward trajectory. Accumulate!! 

#Nahar Spinning Mills Ltd (Rs.262.10) should do well in the coming days. According to news reports, Nahar Spinning Mills has last year undertaken an expansion plan of 31200 spindles. The project's construction is proceeding well. Orders for the machinery have already been placed, and the project is planned to be completed by June 2023. After the expansion is completed, the company's spindle capacity will stand at 5,73,376 spindles and 1080 rotors. The stock is expected to cross Rs.400 in the near future. 

In addition, the company is adding 8 Vortex machines with 96 positions each to its spinning unit. The machinery orders have already been placed. The project is expected to be completed by June, 2023.

Furthermore, the Company's upgrading of the spinning and garment facilities is proceeding as planned. Under this plan, the corporation will replace the 33 old Ring Frames with the New Ring Frames. In addition, new Speed Frames, Card Machines, and Contamination and Control Machines are being installed. The machines have already been ordered, and the modernisation is expected to be completed by June, 2023. Accumulate!!

#Since crude oil is showing some positive momentum, you can buy the shares of Aban Offshore Ltd (Rs.40) near the CMP for short term targets of Rs.47/51.

#The stock of RTN Power Ltd (Rs.3.50) has started to move up. Accumulate for targets of Rs.4.30/Rs.4.60.

#The stock of the pharma giant Wockhardt Ltd (Rs.169.90) is trading at a dirt cheap price. Accumulate for targets of Rs.221/272.

Wockhardt is a global pharmaceutical and biotechnology organisation providing affordable high quality medicines across the world.

It has 14 comprehensive manufacturing facilities across India, US and Europe which are approved US FDA, UK MHRA and EAMA compliant sites.

Wockhardt is a global pharmaceutical and biotechnology organisation providing affordable high quality medicines across the world. It has 14 comprehensive manufacturing facilities across India, US and Europe which are approved US FDA, UK MHRA and EAMA compliant sites. Wockhardt has a global footprint with 75% of its business outside India. It is present in various segments like generics, biotechnology, injectable and antibiotic discovery. Wockhardt is focusing in 4 areas of business to be the strategic pillars for future growth. 

• First is the pharmaceutical business in UK, India, US and emerging markets. 
• Second is the manufacture of vaccine in UK under collaboration with Serum Institute to supply it globally. 
• Third is the entire injectable insulin portfolio in the diabetes Biologcal space. 
• Lastly is the deep commitment of the company in the research and development space for new drug discovery. 

The company has done an entire restructuring in its US business by closing down its manufacturing facility in Morton Grove in Chicago, USA, which was a significant drain on its financial performance. 

Wockhardt expects to save about USD 12 million in losses which it was incurring. But the company has identified the product portfolio to be now manufactured by a third party at a certified facility and will continue to maintain the sale of the product with approx 40% gross margin. 

The company has also recently concluded an agreement with Serum Institute to manufacture 150 million doses per year of vaccine at its UK facility for a period of 15 years and for which it has received £10 million contribution. 

Additionally, apart from the contract manufacturing there is a joint venture component in the agreement wherein there will be a profit sharing of 51:49, in favour of Wockhardt. 

The company has a significant presence in the antibiotic segment and is among the largest company in the world to have a comprehensive end to end discovery and development program. 

The deleveraging undertaken by the company over the last five years have resulted in the long term external debt going down from a whopping Rs.3,200 crore to about Rs.600 crore.

The Wockhardt stock has been in a downturn over the last few years due to high debt and falling sales. But now with external debt restructuring, fresh capital infusion and new contract agreements the company is poised to do well over the next few years. There is a new vision and energy in the company during the last one year and this should propel the Wockhardt to newer heights. The Wockhardt stock quoting at Rs.169.90 on the bourses can be accumulated by portfolio investors for long term solid gains. It has the potential to become a multibagger.