Winning Strokes 

The domestic bourses witnessed selling pressure yesterday, dragged down by the sectors such as Banking, Financials and IT; due to a combination of factors including mixed global market performance and Moody's downgrade of the US credit rating outlook. Despite that buying was seen in PSU Banks and Metal Shares.

The BSE slipped by 325.58 points or 0.50% to end the day at 64,933.87. The Nifty 50 index lost 82 points or 0.42% to close at 19,443.55.

Incidentally, it is after almost 4 - months that I've decided to put some inputs on my blog. I was not able to upload the blog due to, teething work pressure from all sides. However, I kept on updating on my recommendations in Twitter (X). Let's look at few of my recommended counters.

#RTN Ltd which I recommended around Rs.3/Rs.3.10 made a new 52 - week high at Rs.9.20. All my targets have been achieved. Interstingly those investors who were reluctant to buy the scrip at Rs.3 are now buying at almost 3 - times that price.

#Zomato Ltd (Rs.122.20) made a new 52 week at Rs.126.35. If you remember it was recommended around Rs.50/53 last year. The stock as expected turned out to be a Multibagger. 

#The high tech IT services and VC company XELPMOC Design and Tech Ltd (Rs.84.95) didn't come up with good results in the September, 2023 quarter. However, I'm looking at its investments in start up, which over a period is expected to give good returns. It did cross to Rs.94.70 after my recommendation. We can expect the stock to cross Rs.100 by the end of this year.

#Meanwhile, due to some unknown reasons the stock exchange regulators have put the stock of Indowind Energy Ltd (Rs.16.20) in the ESM category and have not increased the circuit limits even after its impressive September quarter results. The SEBI should explain to the shareholders the reason for such outlandish moves. However, I'm expecting the scrip to make new 52 - week highs in the coming days.

#Those who have money but do not have time, can contact me for managing their demat accounts.

For this you don't have to give me any advance money. All you need to do is to have a portfolio of Rs.2 lakhs (negotiable), open a trading account in my associated Brokerage House and allow me to trade on your behalf. This is will be a safe investment technique with no F&O calls. The investments will be done in good small and mid cap counters. The profits will be shared in the ratio of 60:40 ratio in all portfolios below Rs.10 lakhs. Above Rs.10 lakhs it will be 70:30 and above Rs.1 crore it will be 75:25 between you and me. All your earlier losses will be covered.

#I have recommended MMTC Ltd (Rs.52.95) based on the some media reports. MMTC has recently announced its ambitious mining plans of rare minerals like lithium, cobalt, silicon, etc. The Union Cabinet has also approved amendment of 2nd schedule of Mines & Minerals Act for specifying rate of royalty in respect of Lithium, Niobium and Rare Earth Elements. Once the mining ⛏️ starts, the whole business of MMTC Ltd  will take a dramatic turn. 

India has an ambitious plan of mining of rare minerals like, lithium, cobalt, silicon etc, which are critical components towards clean energy. Given the global shift towards clean energy the rare mineral market is expected to witness significant growth.

Moreover, any government will not close any government enterprise just on the eve of elections. This is a simple fact. We can look for immediate targets of Rs.71/96.

#Buy the shares of Adani Transmission Ltd (Rs.759) for targets of Rs.950/Rs.111. Last month, Adani Energy Solutions Ltd inaugurated Warora-Kurnool Transmission Line,  covering 1,756 circuit km across Maharashtra, Telangana & Andhra Pradesh. It's set to reinforce the national grid, enabling power transmission of 4,500 MW between Western & Southern regions.

Adani Energy Solutions Ltd recorded strong set of earnings during the Q2FY24 quarter. Its consolidated profit jumped 46.10% to Rs.284 crore in the quarter that ended on September 30, 2023 as against Rs.194 crore in the year-ago period.

#My recommended FCS Software Solutions Ltd (Rs.2.85) also made a new 52 - week high at Rs.3.45. When a stock makes a new high, the general rule book says to accumulate the scrip in market dips. I'm expecting the scrip to cross Rs.5 in the near future.

#Another of my strongly recommended counters Suzlon Energy Ltd (Rs.39.20) also made a new 52 week high at Rs.40.55. Here also, the investors who were not interested to buy the scrip around Rs.6.10 are now entering at the CMP. Those who have entered the scrip when I recommended must be having an excellent time. Congratulations to you.

#The share of Rajesh Exports Ltd (Rs.438.70) is consolidating at the current levels for the next round of upmoves. The company will come up with September quarter results today.

In June 2023, its net sales came at Rs.1,465.66 crore up 12.91% from Rs..1,298.07 crore in June 2022. Its quarterly Net Profit came at Rs.57.73 crore in June 2023 up 84.8% from Rs.31.24 crore in June 2022.

The EPS of Rajesh Exports has increased to Rs.10.48 in June 2023 from Rs.9.20 in June 2022.

In January this year there was a news report on ETN News that, Bengaluru-based Rajesh Exports, one of the three selected participants in the Government of India's ₹18,100 crore Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage, has signed a tripartite agreement with the Union Ministry of Heavy Industries and the Department of Industries and Commerce, Government of Karnataka, for setting up a battery cell manufacturing facility in the state.

As per the requirement of the PLI Scheme, the company has incorporated a 100 percent subsidiary firm 'ACC Energy Storage Pvt Ltd' for the execution of the 5 GWh project for manufacturing advanced chemistry lithium-ion cells for making battery packs for EVs and energy storage. 

Valcambi, is world’s largest Swiss gold refinery. Rajesh Exports imports gold directly from mines round the world & refines it in India & in Valcambi . 

India’s largest gold refinery in Bengaluru’s Whitefield was set up by city-based Rajesh Exports, one of the world’s largest gold refiners, at Rs 350 Cr. The facility has the capacity to process 600 tonnes per annum, which is about 67% of India’s total gold consumption per year. If its fundamentals are to be believed then the intrinsic value of the scrip comes around Rs.3300.

Infact according to Alphaspread.com, the base case intrinsic valuation of Rajesh Exports Ltd (Rs.437.75) is near my valuable of Rs.3200/3500.

Its profit outlook over the next few years is a strong asset. Its low valuation, with P/E at 8.2 and 4.94 for the ongoing fiscal year and 2024 respectively, makes the stock pretty attractive with regard to earnings multiples.

#My recommended Nahar Spinning Mills Ltd (Rs.259.20) came out with good set of numbers for the September, 2023 quarter. During the coming months the textile stocks are expected to move up, a seasonal move. We can look for targets of Rs.311/320 in the coming days. 

References:

🏵️Live Mint

🏵️ETN News 

🏵️Capital  Market.

🏵️The Business Standard