Winning Strokes

The domestic bourses are doing pretty well. The BSE Sensex was last seen trading at 58,940.55 up 529.57 points (+0.91%), the Nifty has been trading comfortably above the supports mentioned in my earlier post and is now trading at 17,482.60 up 170.80 points (+0.99%). The Indian bourses will continue to trade in the Green till Deepawali, with occasional bouts of buying and selling. You should accumulate good stocks at reasonable valuations.

#Buy the shares of Bajaj Hindustan Ltd near the CMP of Rs.10.60, for targets of Rs.17/19. SL: Rs.9.70.

Bajaj Hindusthan Sugar has 14 (fourteen) manufacturing plants, all located in Uttar Pradesh. It ranks amongst the top two sugar producers in India along with Shree Renuka Sugars.

Record-high sugar prices are seen in the European Union --- nearly three times levels seen a year ago following extreme weather and a surge in energy costs. The government of India should now allow sugar companies to do massive exports to EU. Photo: Equity Bulls.

#Buy the shares of Steel Authority of India Ltd (Rs.79), for short term targets of Rs.85/87.

#The stock of Coffee Day Enterprises Ltd (Rs.50.40) made an intraday high of Rs.51.50. The Book Value of the shares of Coffee Day Enterprises Ltd is a whopping Rs.178.61 Vs CMP of Rs.50.

Which one is Cheaper? 

As of Sept, '22, Tata Coffee (Rs.215.80, FV: Re.1) had ₹11.1b of debt. It has ₹2.17b in cash => Net debt ~₹8.95b or Rs.895 Cr. 

Debt of Coffee Day Enterprises (Rs.50.40), FV: Rs.10) is ~Rs.1500 Cr + valuation of 20,000 acre of coffee plantation business + plus Rs.1000 Cr - plus valuation of its veding machine business + Cafe Coffee Day business + buoyancy in the Robusta Coffee beans.

The stock of Coffee Day Enterprises Ltd should double from the CMP.

#The stock of RTN Power Ltd is waiting for the next level of upmove. Buy the shares at the CMP and keep holding for targets of Rs.10/12.

Both its Amravati and Nasik plants have huge land holdings (I mentioned about the quantum of land in my earlier posts). The company hopes to become debt free within 2025. Accumulate!!

#The stock of Aban Offshore Ltd (Rs.51.35), India's largest offshore drilling companies in the private sector, made an intraday high of Rs.52.50. The high crude oil prices will push up its bottomline. Accumulate for targets of Rs.72/77.

#The share of my old favourite Indowind Energy Ltd (Rs.14.45) hit the buyer freeze today in the opening trade. If you remember, I have been continuously recommending the scrip, since the last few weeks. Hope you have either taken fresh holdings or have averaged your previous purchases.

The company is shortly having a board meeting, where it is expected to deliberate about the proposed Rs.50 Cr, rights issue. It is a low debt company into wind energy sector. 

Its Q1FY23 results were fine.

#The stock of Nahar Spinning Mills Ltd (Rs.301.50) made an intraday high of Rs.309.05. It is a part of the portfolio of the ace investor, Dolly Khanna, whose portfolio is managed by her husband.

The company has superb fundamentals. Once, the textile rally picks up momentum the stock will double from the current price. Accumulate!!

#The stock of Dilip Buildcon Ltd (Rs.219.60) made an intraday high of Rs.224. The company has a massive order book of ~Rs.27,000 crores. Accumulate!!