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Angel Broking Pvt Ltd

Published on 3/03/2021 9:59:07 AM

Buy GNA Axles Ltd CMP (Rs.) 390 Target (Rs.) 500 Upside (%) 28.3

Rationale - GNA Axles is one of the leading suppliers of rear axles to the Auto industry and is expected to be one of the biggest beneficiaries of the revival in the CV cycle. The company derives 60% of its revenues from exports while the balance 40% of the company’s revenues comes from the domestic market. GNA is expected to be one of the biggest beneficiaries of strong growth outlook for truck sales in US and Europe markets which are witnessing strong recovery in demand. US which accounts for almost 40% of the company's revenues has been registering strong class 8 truck sales. At current level  the stock is trading at a P/E multiple of 9xFY23E,given inexpensive valuations we believe that the stock offers value at current levels and  recommend a BUY on the company.

 

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 3/03/2021 9:58:30 AM

Buy HCL Technologies Ltd CMP (Rs.) 954 Target (Rs.) 1,161 Upside (%) 21.7

Rationale - HCL Tech is amongst the top four It services companies based out of India and provides a vast gamut of services like ADM, Enterprise solutions, Infrastructure management services etc. Management has highlighted that demand and supply related issues are now over for the company and the deal pipeline has improved significantly since September led by cloud related services. Management has guided for 2.0-3.0% qoq growth in revenue in constant currency terms for the rest of the year providing visibility.

 

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 3/03/2021 9:57:49 AM

Accumulate Shriram City Union Ltd CMP (Rs.) 1,566 Target (Rs.) 1,800 Upside (%) 15.0

Rationale - Shriram City Union Finance is part of the Shriram group and is in the high margin business of lending to small businesses which account for 57.3% of the loan book as of end FY20. The company posted a good set of number s for the quarter due to positive surprise on the asset quality front. It reported a strong 50% sequential growth in disbursement for the quarter which led to a 3.7% qoq growth in AUM to ~ Rs. 28,500 crore. We are positive on the company as we believe that the worst is over in terms of asset quality which along with positive growth momentum should lead to a rerating for the company.

 

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 3/03/2021 9:57:11 AM

Buy Carborundum Universal Ltd CMP (Rs.) 521   Target (Rs.) 600 Upside (%) 15.1

Rationale - Carborundum Universal (CUMI) is part of the Murugappa group and is a leading manufacturer of abrasives, industrial ceramics, refractories, and electro minerals in India having application across diversified user industries. The company is expected to benefit from improving demand scenarios across its end user industries such as auto, auto components, engineering, basic metals, infrastructure, and power. While demand from the Auto sector has been robust we expect demand from metal industry pick up  given  increased economic activity.

 

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 3/03/2021 9:56:38 AM

Buy PNC Infratech Ltd CMP (Rs.) 264  Target (Rs.) 340 Upside (%) 28.7

Rationale - PNC Infratech is a mid-sized  road EPC player rwith a strong and healthy order book. On an F20 basis it has a book to bill ratio of more than 3.5x. Its entire order book is from the public sector, where risk of cancellation is low. The stock is trading at discount to historical average valuations. It offers a favorable risk-reward ratio.

 

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 3/03/2021 9:56:05 AM

Buy Federal Bank Ltd CMP (Rs.) 83 Target (Rs.) 110  Upside (%) 32.1

Rationale - Federal bank is one of India’s largest old generation private sector banks with total assets of Rs. 1.9 lakh cr. with deposits of Rs. 1.56 lakh cr. and a loan book of Rs.  1.2 lakh cr in F21.

 

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 3/03/2021 9:55:31 AM

Buy Escorts Ltd CMP (Rs.) 1,311 Target (Rs.) 1,573 Upside (%) 20.0

Rationale - Escorts is a prominent tractor player domestically with market share in excess of 11%. With rural India relatively less impacted due to Covid-19, record food-grain procurement by government agencies as well as better than expected Kharif crop in 2020, we expect the tractor industry will continue to outperform the larger automobile space in FY21. The company has also reported a strong growth of 25.7% YoY in Q3FY21 which is expected to continue  into the fourth quarter driven by strong demand.

 

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 3/03/2021 9:54:28 AM

Buy NRB Bearings Ltd CMP (Rs.) 117 Target (Rs.) 150 Upside (%) 27.8

Rationale - NRB is one of the leading suppliers of bearings to  Auto companies and has a wide customer base.The company has also been focusing on exports markets in order to diversify its revenue base and posted a good set of numbers for Q2FY21 as revenues grew by 4.6% YoY while PAT was up by 56% YoY. The management has highlighted that exports growth should be in excess of 20% for FY21. We believe that the company is ideally placed to capture the growth revival in the auto  segment while exports will be another growth avenue for the company

 

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 3/03/2021 9:53:57 AM

Buy Narayana Hrudayalaya Ltd CMP (Rs.) 430 Target (Rs.) 575 Upside (%) 33.7

Rationale - Narayana Hrudayalaya is engaged in providing economical healthcare services, specifically surgery related to cardiac. Company having 21 hospitals with Operational beds of 5920. Company major revenue comes from Bangalore and Kolkata region with 38% and 28% respectively

 

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 3/03/2021 9:53:15 AM

Accumulate Galaxy Surfactants Ltd CMP (Rs.) 2,331 Target (Rs.) 2,569 Upside (%) 10.2

Rationale - Galaxy Surfactants is a market leader in oleochemical-based surfactants, which is used in personal and home care products including skin care, oral care, hair care, cosmetics, toiletries and detergent products. The company has been increasing its share of high margin specialty care products in it’s portfolio which now accounts for ~ 40% of it’s revenues while the balance is accounted for by the performance surfactant business. The company has a very strong relationship with MNC clients like Unilever, P&G, Henkel, Colgate-Palmolive and supplies raw materials to them not only in India but also in US, EU and MENA region. Though the company’s operations had been impacted due to the Covid-19 outbreak in Q1FY21 we expect revenues to bounce back strongly in Q2FY21 given the company’s exposure to the personal and home care segment and recovery in the specialty segment. We recommend a buy on the stock with a target price of Rs. 1997.

 

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164