Please remember, these are not recommendations/ suggestions to buy or sell. Strictly for educational purpose the Indian Economy & Market Research Team has collected these details from the public domain for our subscribers as these couldn’t be a part of our regular monthly magazine.
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Last Week’s Performance
Nava Bharat Ventures, was discussed here in the edition released on January 31 when it was trading at Rs 127. Now the stock is available at Rs 162. It is a diversified group with businesses in metals manufacturing, power, mining, agri-business, healthcare and ferro alloys. It is now a MNC, operating in India, South East Asia and Africa. In Q3 it has clocked 44, 50 and 42 per cent increase in its sales, operating profit and net profit respectively. Presently trading at 5.9PE after such phenomenal financial performance the stock is sure to be re-rated shortly. Keep an eye.
Borosil Limited is the mother company and after demerger of Borosil Renewable still it has two other divisions. In that one is its Science and Industrial Product Division. Now the management is planning to demerge this. Like Borosil Renewable again there is going to be a huge value unlocking. On TTM basis it has clocked Rs 804 crore, Rs 136 crore and Rs 68 crore sales, operating profit and net profit respectively which is highest ever. At present price the downward seems limited and provides best opportunity to enter at Rs 340-310 level.
Capacit’e Infraprojects Ltd. is a focused EPC company that provides an end-to-end construction service for buildings and factories across sectors including design and building services. Its IPO came at Rs 250 in 2017 and the stock made a high of Rs 437. But the journey was not sustainable and in 2020 the stock was trading at Rs 70; now available at Rs 140. It has a strong order book of Rs 8500 crore. Out of that 62 percent is from public sector companies like CIDCO and MCGM whereas 38 percent is from private sector. On 9 months basis its sales and operating profit increased 94 and 125 per cent respectively and against Rs 23 crore loss it has posted a profit of Rs 33 crore. With Net Debt to Equity only 0.09 it looks a turnaround story.
Agarwal Industrial Corporation is an integrated petrochemical company and one of the largest producers of Bitumen, designed to help meet the challenges of road, roofing and insulating materials. It is also into bulk Bitumen transportation with 5 vessels, 350 tankers, 7 bulk storage terminals. It has 300 tankers for LPG transportation also. Renewable Energy is the other sector where it has good presence. On 9 months basis its sales, operating and net profit increased 110, 90, and 138 per cent respectively. Trading at 14PE its performance on TTM basis is the highest ever. It can be considered good for long term.
Rudra Global Infra Products, engaged in various businesses like TMT bars, pipes, tubes and wires – all associated with infras and real estate sector, is a household name in Rajasthan and Gujarat. Its IPO came on SME platform now migrated to main board it has been trading between Rs 26-42 during last one year. It has just come out from this range. In January 2018 the stock was trading at Rs 260. In Q3 it clocked 34 and 1705 per cent increase in sales and operating profit and against Rs 5 crore loss registered profit of Rs 2,25 crore. In last 9 months sales has increased 57 per cent and on TTM basis it has posted Rs 42 crore operating profit which is highest ever in its history. With demand in the sector, younger management and 73 per cent promoter stake there is nothing to lose at this counter.
Sportking India is an established name in textile sector with 100 retail garment stores and supplying to many big brands. It has benefitted from the price hike in yarn. In FY 2020 its topline was Rs 1354 crore with Rs 12 crore profit. FY21 the same was Rs1305 crore and Rs 85 crore. In 9 months of FY 22 the topline is Rs 1561 crore with Rs 305 crore profit. In 2020 the stock was available at Rs 50 but moved to Rs 2047 in October 2021. Right now available at Rs 1310. With huge jump in yarn price and fast moving textile sector, trading at just 4.9PE it is attracting investors attention.
HCC was discussed here in the issue dated 5th December when it was trading at Rs 11.80. It went on to reach Rs 18 in this period. On TTM basis its Operating profit is highest after 2016 and net profit highest ever in last 14 years. It is involved with Mumbai Coastal Road project and continuously reducing its debt. The way infra activities are increasing the counter is sure to run fast from hereon.
Sarthak Metals (SMLT) is the biggest exporter of Cored Wire and also supplies to the top steel manufacturing companies like Tata Steel, SAIL, and JSW Steel. Cored Wire is a product of wire injection technology. Trading at 7PE, on 9 months basis its sales, operating and net profit increased 97, 276, and 284 per cent respectively. Once its clients are booming certainly in the reflected glory the stock will go up.
Schneider Electric Infrastructure is engaged in the business of manufacturing, designing, building and servicing technologically advanced products and systems for the electricity network. End markets include Power Generation, Transmission & Distribution, Oil & Gas, Metro, MMM and other Electro Intensive segments, etc. Since 2013 the performance was not very good but Q3 was better as demand has picked In Q3 it clocked 27, 39 and 57 per cent increase in its sales, operating profit and net profit respectively. On last Friday, after 2017 first time the stock gave its highest closing on Weekly basis. If this trend continues it could be a turnaround case.
THE SCOOP OF THIS WEEK
MAHESHWARI LOGISTICS is into three segments. It provides logistical support to cement companies with 100 self and 5000 third party trucks. It is also into trading of coal, lignite, and waste paper. In 2015 it has taken over a recycled paper plant and manufactures craft paper. All the segments logistics, paper and its trading products are booming. Price of lignite is up. On TTM basis it has recorded highest ever operating and net profit. Last two months the counter saw record volumes indicating buying interest.