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MONEY TIMES TALK - DECEMBER 16, 2023 ABC India, a full-service logistics provider, is trading at low valuations with PE of just 16x, MCap/ Sales of mere 0.3x. Its FY23 EPS was Rs. 7.86. Promoters hold 65%, HNIs & NRIs hold 9.6% and the ADANI Group also has stake in it. Buy for multibagger gains. NSE SME QMS Medical to acquire Saarathi Healthcare Pvt., which conceptualized & launched one of the first disease management programs in India. Its focus on patient- centric disease management impacts over 1 lakh patients every month. This acquisition will boost QMS’ revenues & PAT. Hold for 40% gain. Buy Jai Corp as it is the highest bidder for debt laden Rolta Ltd. Maruti is the best beneficiary of the auto boom. Cash rich with the wildest range, super distribution, this undervalued stock deserves a permanent place in the portfolio.

MONEY TIMES TALK - DECEMBER 9, 2023 Shri Bajrang Alliance is a pioneer in frozen food under the brand GOELD. It is also a supplier to Jubliant Foods, KFC and has tie up with international Lulu Group for exports. Its associate company has 200 KLPD capacity distillery and ethanol plant from grain. Add for multi-bagger gains. GKB Opthalmics benefits by anti-dumping duty imposed on lenses and is expanding capacity to 40000 lenses per day from internal accruals. Buy for multi-bagger gains. Uravi T & Wedge Lamps to develop on board and off board EV chargers to capture 25% to 30% market share by FY25. Its Q2FY24 NP grew 61% YoY. Promoters hold 73% and HNIs hold 13.81%. Add. M&M plans to double capacity over 4 years and launch most advanced EV models at an investment of around Rs.3500 cr. Add.

India Stock Value Tops $4 Trillion, Narrowing Gap With Hong Kong https://www.bloomberg.com/news/articles/2023-12-06/india-stock-value-tops-4-trillion-narrowing-gap-with-hong-kong

MONEY TIMES TALK - NOVEMBER 25, 2023 Denis Chem trades at attractive valuations with a dividend yield 3%. This Debt free company has mkt.cap./sales ratio of 0.55x. Varun Daga holds 11.5% and FIIs hold 20.74% stake in the company. Buy for multi-bagger gains. Shemaroo Entertainment is available at a mkt.cap. of just Rs.394 cr. All its peers like Saregama, Tips, etc have given multi-bagger returns. Further, its Q2FY24 PAT rose 93% to Rs.4.58 cr. from Rs.2.37 cr. in Q2FY23. Add for hefty gains. Competent Automobiles has a mkt.cap. of just Rs.234 cr. and a BV of Rs.505. Its FY23 sales stood at Rs.1731 cr. and EPS at Rs.41.93. It trades at a P/E of 5.58x and P/B of 0.75x. Recently its board approved the listing of share on the NSE. Add. MK Ventures promoted by Madhusudan Kela trades at a P/E of 20x. A technical breakout may take its share price above its 52-week high of Rs.1726. Add for decent gains.

Morgan Stanley shares 5 key drivers of India's structural bull market https://economictimes.indiatimes.com/markets/stocks/news/5-key-drivers-to-indias-structural-bull-market/go-india/slideshow/105286934.cms

RBI measure towards consumer credit and bank credit to NBFCs 🔸 RBI has increased the applicable risk weights for consumer credit, credit card receivables and credit to NBFCs with immediate effect 🔸 The risk weights for unsecured consumer credit has been hiked to 125% (vs. 100%) while credit card receivable would be risk weighted at 150% (vs. 125% earlier) 🔸 Risk weights on exposure to NBFC has been hiked by 25 percentage points in all cases where the extant risk weightage is below 100%. However, loans to HFCs and loan to NBFCs which are eligible for classification as priority sector shall be excluded 🔸 RBI has also mandated that banks should have board approved internal limit for unsecured consumer credit exposure, which shall be monitored on an ongoing basis by the risk management committee 🔸 All top-up loans against movable assets which are inherently depreciating in nature shall be treated as unsecured loan 🔸 As per RBI data, other personal loan, credit card and NBFC account for ~8.9%, 1.6% and 10.5%, respectively, of total banking system credit 🔸 Risk weights for MFI loans remain unchanged at 75%. Rise in risk weights (or rather restoration) for unsecured personal loans was on expected lines. However, the hike effected on credit cards/NBFCs has come as a negative surprise 🔸 Rise in risk weights for NBFCs is particularly intriguing, as the hike would be over and above the risk weights determined by external rating Impact on Banks - Likely CET-1 impact for large banks 🔸 Higher risks weights shall translate to higher capital consumption, which in turn will likely impact the respective segment’s growth adversely 🔸 Basis higher capital consumption, banks should be asking for higher spreads for such loans as well 🔸 Unsecured personal loans stand at 7-10% of overall loans for SBI, HDFCB and Axis, but appear large for IDFCFB (at ~17%) 🔸 Credit card loans are large for RBL Bank (24% of overall loans) but reasonable at Axis, HDFCB, KMB, IIB at 3.0-4.0% and ~2.4% for IDFCFB while negligible for rest of the banks Source: ICICI Securities research

MONEY TIMES TALK - NOVEMBER 11, 2023 Crest Ventures notched Q2 EPS of Rs.11.41 from Rs.2.70 YoY. It is debt free and promoters hold 69.11% and FPIs hold 5.29%. It trades at a P/B of 0.80x and has a RoE of 50.47%, RoCE of 64.98% and RoA of 39%. Add for magnificent gains. Cravatex notched Q2 EPS of Rs.12 and has sold off its loss-making Indian subsidiary. It is highly undervalued as compared to its peers. Add for 25% gains. Cosmic CRF H1FY24 NP grew 744% to Rs.6.79 cr. from Rs.80.49 lakh YoY. Its expansion plan will boost sales and profits going ahead. Buy for 25% gains. Modern Diaries came out of NCLT and posted excellent results. A big positive. Add for hefty gains. Reliance Industries intends to raise Rs.20,000 cr. via bonds with a coupon rate of 7.75-7.8%. The funds will be used to refinance existing debts. A safe investment bet. Add.

MONEY TIMES TALK - NOVEMBER 04, 2023 Competent Automobiles, leading distributor of Maruti Suzuki cars in North India is available at a mkt. cap of Rs.243 cr. It trades at a P/E of 9.14x and P/B of 0.80x. Its BV is Rs.505 and the promoters hold 75% equity stake. Add for multi-bagger gains. BDH Industries stock trades at a P/E of 14.3x. It has a RoE of 16.27%, RoCE of 19.61% and dividend yield of 2.5%. It notched FY23 EPS of Rs.14.25. Keep it on your radar. Uday Jewellery plans to expand four fold by internal accruals. Wedding season is around but it is yet to show an up-move. The promoters hold 74% of the equity capital and HNIs and corporates hold 20% stake in the company. Add for 30% gains. Artefact Projects stock trades at a P/E of 8.6x and P/B of 0.86x. Its CMP of Rs.64 is way below its private placement price of Rs.111. HNI’s hold 7.26% stake in it and it has a strong order book. It notched FY23 EPS of Rs.7.58. Add. US 10 Year Bond yield is down almost 50 bps, which can be a game changer for Emerging markets. If it sustains below 4.35, there will be strong buying by FIIs as their selling is directly related to the US bond yield. If US bond yields will cool off, money will flow again into equity markets and since India is the best performing major economy, it will attract strong inflows. QMS Medical to acquire Saarathi Healthcare Pvt. Ltd. and Prometheus Healthcare Pvt. Ltd., which may boost its PAT Rs. 30 cr. in FY25. A big positive. Add. Uravi T & Wedge Lamps, a large manufacturer of automotive lamps for instrument clusters and second largest in automotive signaling and parking lamps for all leading OEMs. Keep it on your radar. Maruti is showing huge traction. It has huge expansion plans on hand. Higher models selling better with superior margins. Add.