The August streak was very good for TI stocks. What kind of rollover will happen to the September series?
This August series was really good. Although the average for medium and small capital was slightly corrected, that gave really good ratings for the good companies. We will see that inventory or sector rotation is underway. Over the next 3-4 months, IT will definitely do well along with FMCG and Banking.
Even the shares of the Adani Group are starting to perform very well. What kind of goal do you expect at Adani Ports and what is the trigger point?
Adani Ports is an economic growth game. This company maintains a large number of ports and terminals in our country. It is one of the biggest players in this sector. In the coming days, as the economic growth improves, imports and exports will increase as well, and this will certainly benefit Adani ports.
The company also received a letter from the Andhra Pradesh Maritime Board alluding to the approval of the takeover offer of approximately 10.4% of the shares of GPL from the Andhra Pradesh government. The investor increased his participation from 63.74% to 63.79%, which indicates his confidence in the company.
The company also likes monopoly in this field and benefits from increasing imports and exports in India. Adani Ports will be doing well in the next few days. I kept my stop loss at Rs 675 and target levels of Rs 830 for the next four to six months. Adani Ports is now available at a very good price of Rs 723. The latest high was about 900 rupees. I think it's a very good review and a very good choice.
Why do you like Likhitha Infra? What is the trigger there?
Likhitha Infra is the biggest beneficiary of the investment being made in gas infrastructure and the government is really involved in developing and expanding this space in our country. Likhitha Infra is a debt free infrastructure company. PAT has grown at a compound annual growth rate of 63% over the past five years and the company has reported good numbers for the first quarter of FY22, with PAT being nearly 10 times higher year over year, while sales grew 229%.
The stock was available at Rs 480 at the latest high and is currently available at Rs 356 levels, so the valuations are good too. I think it's a very good buy. For Likhitha, the stop loss will be set at Rs 310 and the target levels will be Rs 440 for four to six months.
The latest pick, Heranba, is a recent listing, but there have been a lot of chemical IPOs in the past few days. Have you also looked at the IPO side of the market?
Yes sure, but the euphoria seen in the IPO market only stopped because the market was also weak and sentiment waned because we are at the top of the market. But Heranba is the best stock of agrochemicals geared towards growth. It has excellent fundamentals with a ROC of about 45.3%, an ROE of about 36.3% and a PE of 0.10x.
The company has achieved good earnings growth of around 5.59% compound annual growth rate (CAGR) over the past five years. The company holds 20% of the market share in DOM pyreteroid and is present throughout the value chain. It posted really good numbers in the first quarter.
During an investor conference with management, they said that the second and third quarters will be better than the first, which was really good. So even though it is a recently listed company, given its very good fundamentals, I think Heranba would be a very good choice. From now on, the stop loss will be set at Rs 700 and the target levels for Heranba will be Rs 900. Currently, Heranba is available at Rs 775-776 levels.
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