Stock Recommendations For Your Portfolio

HAVELLS INDIA | BSE CODE: 517354 | Volume: 42752 | CMP: Rs 675

Last Seven Days’ Volume Table (No. of Shares)
Days	Volume
14-Jun-13	24810
17-Jun-13	15231
18-Jun-13	29479
19-Jun-13	49036
20-Jun-13	43141
21-Jun-13	14479
22-Jun-13	42752

Havells India has posted decent numbers for the concluding quarter of FY13. On a standalone basis, the revenues grew by 12 per cent and the EBITDA grew by 12.5 per cent on a YoY basis. The growth in revenues can be attributed to strong growth across various segments except for cables and wires, which was impacted by a 17 per cent decline in the industrial cable division. For a full year, the company has witnessed a revenue growth and EBITDA growth of 16.9 per cent and 17.2 per cent respectively on a YoY basis. This is much better than its other listed peers. Havells is consolidating its economic position by strengthening its presence around direct consumers and increasing its dealership network. Going forward, the company has planned new launches which are likely to act as value accretive for the stock prices. One can look at the stock from a medium-term perspective.

BRITANNIA INDUSTRIES | BSE CODE: 500825 | Volume: 7557 | CMP:  Rs 646

Last Seven Days’ Volume Table (No. of Shares)
Days	Volume
14-Jun-13	11140
17-Jun-13	11119
18-Jun-13	10197
19-Jun-13	6963
20-Jun-13	8238
21-Jun-13	7904
22-Jun-13	7557

The performance of Britannia Industries on the financial front for Q4FY13 had been quite encouraging. The company has reported an expansion of 280 basis points in its EBITDA margins. This expansion is the highest since Q4FY09. The reason for such a high expansion can be attributed to the benign input cost environment. The input costs remained favourable as sugar prices are down by 16 per cent from its peak level, palm oil prices are lower by 25 per cent and wheat prices are down by six per cent. There has been good growth across high margin products like cake, bread and rusk which have grown at more than 25 per cent CAGR in the last three years. Another highlight of the company is that its subsidiaries are no more a drain and contributed to an EPS of Rs 2.1 in FY13. The dairy business is the front-runner in this respect. We believe that the company is likely to maintain its good performance going forward too. One can look at the stock from a medium-term perspective.