Stock Recommendations For Your Portfolio

BHAGERIA DYE-CHEM | BSE CODE: 530803  | VOLUME: 80880 | CMP: Rs.207

Established in 1989, Gujarat based, Bhageria Dye-Chem is engaged into the business of manufacturing Pharmaceuticals, dyes stuff, intermediates, specialty products, agrochemicals and pigments. It exports 70 per cent of its production to countries such as Germany, Korea, Taiwan, Japan, USA, EU and the African continent. Its topline increased 26.50 per cent to Rs. 181.62 crore in June’2014 quarter from Rs. 49.75 crore in June’2013 quarter. Also, it has been consistently increasing from the past several quarters. The company has also been able to maintain good profits and profit margins. The profit increased to Rs. 16.58 crore in June’2014 quarter as against Rs. 1.56 crore in June’2013 quarter, up 962.82 per cent. The profit margin has almost tripled in June’2014 quarter on a Y-o-Y basis standing at 9.12 per cent in June’2014 as compared to 3.14 per cent in June’2013. Going forward, given very strong fundamentals of the company, we expect the stock to perform well in the coming trading sessions.

SUDARSHAN CHEMICAL | BSE CODE: 506655  | VOLUME: 3145 | CMP: Rs.1085

Sudarshan Chemical is engaged in the production of organic and inorganic pigments and intermediates and is diversifid into the production of agrochemicals. It is one of India’s leading manufacturers of pigments which contribute to over 30 per cent market share in domestic pigment industry. In a recent stock exchange disclosure, company has announced that it will have a meeting on 19th September to announce the record date for split of its share from face value of Rs. 10 to Rs. 2. It is also going to issue bonus shares in the ratio of 1:1. In FY14, Pigment contributed 90 per cent to the operating revenue and remaining 10 per cent was contributed through Agrochemicals. The company further plans to expand its capacity to tap future growth in the industry. Sudarshan has over 1000 customer base comprising leading manufacturers of paints, inks, plastics and cosmetics.