Stock Recommendations For Your Portfolio

NIIT TECHNOLOGIES | BSE CODE : 532541 | Volume : 15295 | CMP : Rs.393

Apart from better results for Q4FY14, NIIT Technologies in a recently held analyst meet, the company management indicated that it has undertaken various initiatives to catapult the growth trajectory going forward. With increased focus on western markets and defocus from government projects, the company expects the earning momentum to increase going forward. The company is putting all its effort on four fronts which will accelerate growth going forward and which are to grow western markets, scale IMS to attain leadership in Travel & Transport domain and focus on Digital Services. Apart from the four focus areas, what is more encouraging is that the order book of the company for FY14 has grown by 103 per cent on YoY basis with 83 per cent of the fresh business coming from the western market. It is also expected that with lower contribution from government projects an improvement in debtor days and cash-conversion is also on the cards.

TALWALKARS BETTER VALUE FITNESS | BSE CODE : 533200 | Volume : 36109 | CMP : Rs.177

Talwalkars Better Value Fitness posted a growth of 17.7 per cent on YoY basis in its Q4FY14 revenues. It is mainly driven by a mix of growth in value added services like NuForm, Reduce and Zumba as well as sales push from various offerings like New Year, EMI scheme, Women’s day etc. Volume growth was supported by addition of 14 fitness centres in FY14. An expanded gym base yielded operating costs synergies and sourcing benefits which drove a 190 bps YoY rise in the EBIDTA margins. The bottomline also witnessed robust growth of 22.6 per cent on YoY basis. Going forward, the company aims to expand its health clubs in locations which can yield an incremental RoCE of 25 per cent and improve its same store sales from presently 4‐5 per cent to 8‐10 per cent. In terms of expansion plans, company has signed a master franchisee for 30 HiFi (no frills gyms) in Tier III and IV towns over the next three years.