Kerbside

A PRODUCTION SHORTFALL IN NORTH INDIA

McLeod Russel India
BSE Code: 532654
CMP: Rs.196.10

McLeod Russel India is the world's largest tea growing company. In the month of September, tea production in Assam, which accounts for over 50 per cent of the annual production in the country, dropped by 27 per cent to 81.75 million kg because of unseasonal torrential rain, while the production in West Bengal's Dooars region fell by 19 per cent to 43 million kg in the same month. A production shortfall in North India will result in a supply shortfall and hence prices are expected to improve. An excellent buy in the current scenario.




GST CUT

Speciality Restaurants
BSE Code: 534425
CMP: Rs.140.40

Speciality Restaurants owns and operates restaurant chain, which includes Mainland China, Sigree, Machaan and Oh! Calcutta. With the GST on restaurants cut sharply to 5 per cent, players such as Speciality Restaurants are likely to be big beneficiaries. The demand may witness an uptick post this bold decision to lower the taxation. Additionally, if the sources are to be believed, the stock is being accumulated by HNIs and eagle-eyed investors. Hence, this is a good time to buy this stock.

JUMP IN PROFITS

Minda Industries
BSE Code:532539
CMP: Rs.1100.55

The stock has zoomed up 38 per cent since the beginning of this month and the volumes have been on the higher side as well. The company has reported 73 per cent YoY jump in its consolidated net profit at Rs.73 crore in Q2FY18. While F Ten Minda is into development and manufacturing of car infotainment systems, Minda F Ten is involved in marketing of these products. As per our sources, this stock could be bought for stellar returns.






AND FINALLY..

Sadbhav Engineering
BSE Code: 532710
CMP: Rs.354.15

Sadbhav Engineering reported a decent set of numbers in Q2FY18. Its standalone debt was reduced by Rs.2 bn in 1HFY18 to Rs.14.2 bn and it is expected to reduce further by Rs.2 bn, led by healthy cash flow on a standalone basis. For 2HFY18, the management expects awarding activity from NHAI and MoRTH to pick up, with 37 projects worth Rs.300 bn in the pipeline for bidding. In addition, the company has already submitted bids for two projects worth Rs.18 bn in Karnataka. The company is considering bidding for three projects, collectively worth Rs.10 bn, in the mining sector in 2HFY18. Further, it expects order inflows to pick up in the irrigation segment from Madhya Pradesh, Rajasthan and Karnataka and would bid for projects worth Rs.32 bn. Start accumulating this stock for a decent upside.