5 Stocks to Buy Today: September 3, 2021

Stocks to Buy Today - 3rd September 2021
03/09/2021

Every morning our analysts scan through the markets universe and chose the best momentum stocks to buy today. The stocks are recommended from a wider list of momentum stocks and only the best ones make it to the top 5 list. We also update on the performance of earlier recommendation every morning to help you with your trading journey. Here is a list of five momentum stocks to buy today. The average holding period could be between 7-10 days on average.

List of 5 Stocks to Buy Today

1. Varun Beverages Ltd. (VBL)

Varun Beverages Limited is the second largest bottling company of PepsiCo's beverages around the globe. The company manufactures, bottles and distributes beverages and is a part of the RJ Corp group that caters to sectors such as hospitality, food and beverages (“F&B”), education, healthcare, diagnostic laboratories and stem cell banks.

VBL Stock Details for Today: 

- Current Market Price: 882

- Stop Loss: 868

- Target: 920

- Holding Period: One week buy

5paisa Recommendation: Uptrend is likely to continue for this stock, thus making it our top recommendation for stocks to buy today. 

 

2. Cummins India Ltd. (CUMMINSIND)

Cummins India Limited is the India's leading manufacturer of diesel and natural gas engines. The company designs, manufactures, distributes and services diesel and alternative fuel engines from 2.8 to 95 liters, diesel and alternative-fueled power generator sets of up to 3000 kW (3750 kVA). It comprises of 3 business units - Engine, Power Systems, and Distribution.

CUMMINSIND Stock Details for Today: 

- Current Market Price: 1,040

- Stop Loss: 1,010

- Target 1: 1,080

- Target 2: 1,115

- Holding Period: One week buy

5paisa Recommendation: The trend lines look very strong on chart, and this momentum keeps this stock one of our best buys of the day.

 

3. Happiest Minds (HAPPSTMNDS)

A Mindful IT Company, enables digital transformation for enterprises and technology providers by leveraging a range of disruptive technologies such as: AI, blockchain, cloud, digital process automation, internet of things, robotics/drones, security, virtual/augmented reality, etc. Happiest Minds is headquartered in Bangalore, India with operations in the U.S., UK, Canada, Australia and Middle East.

HAPPSTMNDS Stock Details for Today: 

- Current Market Price: 1,488

- Stop Loss: 1,450

- Target: 1,560

- Holding Period: One week buy

5paisa Recommendation:  Our technical analysts observe a breakout on chart, that looks promising.

 

4. IndiaMART(INDIAMART)

IndiaMART is the largest Indian online B2B marketplace that connects buyers with suppliers. With 60% market share of the online B2B Classified space in India, the channel focuses on providing a platform to Small & Medium Enterprises (SMEs), Large Enterprises as well as individuals.

INDIAMART Stock Details for Today: 

- Current Market Price: 8,153

- Stop Loss: 8,000

- Target: 8,550

- Holding Period: 5 days

5paisa Recommendation:  With very strong volumes observed on this stock, it will likely be push upward, thus featuring it on our list of stocks to buy today.

 

5. Jubilant FoodWorks Ltd. (JUBLFOOD)

Jubilant FoodWorks Limited is an Indian food service company based in Noida, Uttar Pradesh. The company holds the master franchise for Domino's Pizza in India, Nepal, Sri Lanka and Bangladesh, for Popeyes in India, Bangladesh, Nepal and Bhutan, and also for Dunkin' Donuts in India. 

JUBLFOOD Stock Details for Today: 

- Current Market Price: 4,116

- Stop Loss: 4,025

- Target 1: 4,235

- Target 2: 4,350

- Holding Period: One week buy

5paisa Recommendation:  It is likely that the buying trend will be renewed, based on technical analysis. Thus, making it to our list of top 5 stocks to buy today. 

As we promised, here's how our previous stock call recommendations have worked. 

 

Performance of our Previous 'Buy' Stock Calls

1. POLYCAB has hit its set target and is at a steady growth of 9.3% in 3 days

2. NAVINFLUOR projects a profit of 7.3% in 4 days

3. RADICO went up by 5% intra-day

4. PNCINFRA went up by 4.4% intra-day

5. UBL went up by 4.2% intra-day

6. SBILIFE went up by 2.5% intra-day

7. BTST CENTURYTEX went up by 4% over and above the recommended price

 

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Chemplast Sanmar rallies smartly post tepid IPO

Chemplast Sanmar rallies smartly post tepid IPO

Chemplast Sanmar IPO, part of the Sanmar group of Tamil Nadu, had recently closed its mega Rs.3,850 crore IPO in the month of August. The response had been tepid at just about 2.17 times subscription and the stock had dipped to a discount to the issue price post listing. 

However, in the last two weeks since listing, the stock has recouped 21% from the lows and is currently 13.7% above the issue price of Rs.541. On 02 September, the stock had closed at Rs.615, after touching a high of Rs.621. From the recent lows of Rs.510, this represents a 20.6% bounce in the stock price. What exactly has triggered this sharp rally in Chemplast?

There were two key reasons for the rally. Firstly, as committed in the IPO filing, the company has used up the proceeds of the fresh issue to repay non-convertible debentures of Rs.1,238 crore. The fresh issue proceeds of Rs.1,300 crore was almost entirely used up as committed as on 31-Aug. This largely benefits the company’s solvency ratios.

Secondly, this NCD was backed by the promoter holdings in the shares of Chemplast Sanmar and the shares of Chemplast Cuddalore Vinyls. With the NCD being fully repaid, these shares have been released from pledge on 31 August and currently there is not a single share of the promoters that is under pledge. Pledged shares tend to make traders jittery and the combination of pledge release and loan repayment boosted the stock price.

There is also a more fundamental pitch favouring the company. It is India’s largest manufacturer of specialty paste PVC resin, which finds extensive applications in the Agro-chemical and pharmaceutical sectors. 

In addition, Chemplast has a diversified product portfolio including chlor-alkali, caustic soda and chlorine, making it a de-risked chemical play. The loan repayment and pledge release has allowed markets to focus on the core strengths in the product portfolio of Chemplast Sanmar.

 

Also Read: 

Upcoming IPOs in 2021

IPOs in September

Next Article

Ami Organics IPO subscription Day-3

Ami Organics IPO subscription day 3
IPO
by 5paisa Research Team 03/09/2021

The Rs.570 crore IPO of Ami Organics, consisting of Rs.200 crore fresh issue and Rs.370 crore OFS, had been fully subscribed on Day-1 itself. As per the combined bid details put out by the BSE, Ami Organics IPO was subscribed 64.54X overall at the close of Day-3, with bulk of the demand coming from the HNI and QIB segment. The issue has closed for subscription on Friday, 03 September.

As of close of 03 September, out of the 65.42 lakh shares on offer, Ami Organics saw bids for 4,222.36 lakh shares. This implies an overall subscription of 64.54X. The granular break-up of subscriptions was tilted in favour of retail investors.

 

Ami Organics IPO Subscription Day-3
 

Category Subscription Status
Qualified Institutional (QIB) 86.64 Times
Non-Institutional (NII) 154.81 Times
Retail Individual 13.36 Times
Total 64.54 Times

 

QIB Portion

The QIB portion saw 86.64X subscription with demand for 1,606.52 lakh shares against 18.54 lakh shares available; net of anchor placement. On 31 August, Ami Organics did anchor placement of Rs.171 crore to QIB investors like SBI MF, Nippon MF, Malabar Fund, Kuber Fund, UTI MF, IIFL Asset Management, Elara India, Birla Sun Life, Kotak Life etc. 

HNI Portion

The HNI portion got subscribed 154.81X (getting applications for 2,177.32 lakh shares against the quota of 14.06 lakh shares). Funded applications and corporate applications, contributed in a big to the last day subscription.

Retail Individuals

The retail portion got subscribed 13.36X at the close of Day-3, showing strong retail appetite. Among retail investors; out of the 32.82 lakh shares on offer, valid bids were received for 438.52 lakh shares, of which bids for 331.43 lakh shares were at the cut-off price. 

The IPO is priced in the band of (Rs.603-Rs.610) and has allocated a quota of 35% for retail and 50% for QIBs.
 

Also Read: 

Upcoming IPOs in 2021

IPOs in September

7 Interesting Things to Know Before Investing in Ami Organics IPO

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Reliance Industries (RIL) Share Price at 52 Week High, Why?

Reliance Industries Share Price Increases

The share price of Reliance Industries (RIL) touched a new 52 week high of ₹2,394.30 today. With today's rise in Reliance share price, the market capitalisation of the country's most cherished company rose above ₹15 lakh crore. It is the top most listed company by market capitalization on NSE and BSE.

Reliance Industries shares have seen strong buying interest as the retail arm of the company, Reliance Retail Ventures (RRVL) acquired controlling stake in Just Dial Limited.

On September 01, 2021, Just Dial, according to the preferential issue, allotted 2.12 crore equity shares of Rs10 each at a price of ₹1,022.25 per equity share (including a premium of ₹1,012.25 per equity share) representing 25.35% of the post-preferential issue paid-up share capital of Just Dial to RRVL.

Earlier, on July 20 this year, RRVL acquired 1.31 crore equity shares of Rs10 each of Just Dial at Rs1,020 per equity share from VSS Mani on the floor of the stock exchange through the block window facility. The acquisition represents 15.63% of the post-preferential issue paid-up equity share capital of Just Dial.
With that, RRVL currently holds 40.98% stake in Just Dial.

RIL closed at ₹2,388.2 up 4.12% on BSE sensex today i.e. September 3, 2021.

About Reliance Industries

Reliance Industries Limited (RIL) is one of India’s largest private sector enterprise, a vertically-integrated company with business interests in energy and materials value chain. The group’s activities span across E&P, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), retail, shale gas and telecom services.’

Reliance Industries Share Price Historical Performance:

Source: Ace Equity


The above chart shows that the stock jumped as much as 29.6% in the past one year. The stock closing low was ₹1,843.15 and closing high of ₹2,388.25 between the period September 3, 2020 to September 3, 2021. The stock generated 13.1% return from September 3, 2020 to September 3, 2021.

5paisa Stock Review on Reliance Industries

We are positive on the stock from a long-term point of view given the strong outlook for O2C businesses. Further, the increasing focus on retail business and strong performance of telecom vertical makes the investment further promising.

Technical Analysis of Reliance Industries Stock

Trend of stock is bullish, stock ended the session with big bullish candle on Friday. Prices formed higher highs and higher lows which is a positive sign for coming sessions. As per Bollinger bands, stock managed to close above its upper Bollinger band which also indicates buying may continue in stock. RSI placed above 70 level which is a overbought zone so buy on dips strategy one can use ahead.

Next Article

JSPL to Separate Power Business to Worldone for Rs.7,401 crore

JSPL to Separate Power Business to Worldone for Rs.7,401 crore
05/09/2021

On 03-Sep, shareholders of Jindal Steel & Power (JSPL), approved the proposal to sell 96.42% stake in Jindal Power Limited to Worldone. It must be noted that Worldone is a promoter group company of the Jindal family. The special resolution was passed by shareholders of JSPL with 97.12% votes supporting the resolution.

The consideration of Rs.7,401 crore will entail two parts. It will entail a cash pay-out of Rs.3,015 crore to JSPL. In addition, Worldone will also assume Rs.4,386 crore worth of liabilities and obligations of JSPL which are in the form of intercorporate deposits (ICD) and capital advances given by Jindal Power to JSPL. However, the final outcome was not smooth sailing all along.

The original meeting to seek shareholder approval was set in May-21. However, that meeting was cancelled after proxy advisors strongly objected to the low pay-out. Subsequently, Worldone sweetened its offer and agreed to pay a cash component plus assumption of liabilities of JSPL. However, there are still objections on the arms-length issue since the buyer of JPL, Worldone, is a Jindal group company. 

Notwithstanding the objections, the resolution has got a decisive vote of 97.12% of shareholding and the deal is now likely to be executed. There are some distinct benefits for JSPL from this sale. Firstly, the deal will eliminate Rs.6,566 crore of debt in the books of JSPL attributable to the Jindal power business. Secondly, it allows JSPL to focus on its core steel business, which is seeing strong demand at present. 

Above all, this sale will help JSPL to reduce its carbon footprint, something all metal companies are trying to do. This move also gives JSPL a more favourable positioning in terms of its ESG (Environmental, Social, Governance) metrics and is expected to be valuation accretive.

Next Article

Ami Organics IPO Allotment - How to Check the IPO Allotment Status

Ami Organics IPO Allotment
IPO
05/09/2021

The Rs.570 crore IPO of Ami Organics, consisting of Rs.200 crore fresh issue and Rs370 crore OFS, was subscribed 64.54X overall at the close of bidding on 03 September. The basis of allotment will be finalized on 08 August. If you have applied for the IPO, you can check your allotment status online. 

You can either check your allotment status on the BSE website or the IPO registrar, Link Intime. Here are the steps.

Checking the allotment status of Ami Organics on BSE website

Visit the BSE link for the IPO allotment by clicking on the link below https://www.bseindia.com/investors/appli_check.aspx 

Once you reach the page, here are the steps to follow.

•    Under Issue Type – Select Equity Option
•    Under Issue Name – Select Ami Organics from the drop down box
•    Enter the Application Number exactly as in the acknowledge slip
•    Enter the PAN (10-digit alphanumeric) number
•    Once this is done, you need to click on the Captcha to verity that you are not a robot
•    Finally click on the Search Button

The allotment status will be displayed on the screen in front of you informing about the number of shares of Ami Organics allotted to you.

Checking the allotment status of Ami Organics on Link Intime (Registrar to IPO)

Visit the Link Intime registrar website for IPO status by clicking on the link below:
https://linkintime.co.in/MIPO/Ipoallotment.html

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Ami Organics from the drop down box.

•    There are 3 options. You can either access the allotment status based on PAN, Application Number or DPID-Client ID combination.

•    Select the appropriate option you want to use and enter the details (PAN / Application Number / DPID-Client ID)

•    Finally, click on the Search button

The IPO status with number of shares of Ami Organics allotted will be displayed on the screen.