Hot Chips - Stock Recommendations For Your Portfolio

WIM PLAST | BSE CODE: 526586 | Volume: 2901 | CMP: Rs 328

Wim Plast has a strong presence in the markets with a market share of 10 per cent in the Indian plastic moulded furniture market. It markets its products under the brand name ‘Cello’. In the last couple of years, the company has doubled its production capacity with an investment of around Rs 60 crore mainly through internal accruals. During FY11-13, Wim Plast started its four new manufacturing units in Chennai, Haridwar, Kolkata and Daman. The most interesting fact is that these manufacturing units, apart from Daman, enjoy benefit in excise duty and in central sales tax. They also get income tax benefits for a period of 10 years which is likely to provide a competitive edge over its peers.

The manufacturing facilities are strategically located close to major cities and also tier II and tier III cities which in turn give them a larger area to cover and benefit, with regard to its logistics. The other fact is that the company trades at an attractive valuation as compared to its listed peers and one can look forward to this stock from a medium-term perspective.

DCB Bank | BSE CODE: 532772 | Volume: 744000 | CMP: 46.60

With 10 straight quarters of topline growth, DCB Bank has become a force to reckon with in India’s private banking space. The bank’s good results are aided by stronger NIMs, steady asset quality and an improved operating leverage. The bottomline of the bank stood at Rs 34.1 crore as of Q4FY13, witnessing a growth of almost 97 per cent, which is much higher than the street expectations. The bank also added five new branches during the recently concluded quarter of FY13, taking the additions to 10 new branches which is an increase of 12 per cent on a YoY basis.

It fared well on the advances front too, which came in at Rs 6586 crore for this quarter as compared to Rs 5964 crore in the previous one. Despite such a strong growth in advances, DCB Bank has managed to maintain its asset quality. In fact, it actually saw an improvement on the Gross NPAs front, which stood at 3.18 per cent as against 3.80 per cent in December 2012 and were as high as 4.40 per cent in March 2012. One can thus look at the stock from a medium-term perspective.