Stock Pick From Miscellaneous and Software Sector

Talwalkars Better Value Fitness is one of the largest fitness chains in India, offering a diverse suite of services in fitness including gyms, spas, aerobics and health counselling under the brand ‘Talwalkars’. The Indian fitness and slimming industry is likely to gain prominence in the years to come. Growing disposable income, rising fitness awareness among the people and rising urbanisation are the key drivers for the growth of this industry. The company’s consolidated net sales for the June quarter clocked growth of 14.29 per cent and stood at 458.73 million from Rs 401.36 million over the corresponding quarter of the previous year. In Q1 FY16 the net profit of the company surged to Rs 47.68 million, an increase of 18.28 per cent against Rs 40.31 million in the corresponding quarter of the previous year. The company is focused on improving margins through a franchisee model and improving retention rate. This could be a major trigger for the stock prices to move upwards in the coming days.

Tata Elxsi

Tata Elxsi is a design company that blends technology, creativity and engineering to help customer transform ideas into world-class products and solutions. The company provides product design and engineering and systems integration and support services in India and internationally. The key services offered by the company are embedded product design, industrial design, visual computing labs and system integration. A major part of the company’s software development revenue arises from what is called ‘embedded product development’. This entails development of electronics used in automobiles and by the broadcasting industry. One of the reasons why investors have become gradually excited about this company is the massive opportunity in this segment. It is likely that Tata Exlsi will continue its growth led by automotive, broadcast and consumer electronics’ division which contributes about 75 per cent to its revenues. The stock should be accumulated on dips for healthy gains in the near term.