Stock Recommendations For Your Portfolio

Kajaria Ceramics | BSE Code: 500233 | Volume: 149440 | Price: 245   

Kajaria Ceramics has been able to post a strong set of numbers for Q2FY14 as compared to its peers. The company posted an EBITDA of Rs 65.3 crore, marking a growth of nine percent. The Profit After Tax for the quarter ended September 2013 came in at Rs 27 crore. The operating profit margins, however, have remained under some pressure, mainly due to higher energy costs. But this phenomenon is likely to see a reversal going forward. The turn in the tide is expected because of the price hikes effected by the company in the month of October 2013. The strong leadership position and brand equity that it enjoys in the Indian markets are other factors that make this a good investment pick. The company has also been able to reduce its debt burden. It has some aggressive capex plans, whereby it intends to take its capacity from 43.6 MSM (million square metres) to 58.5 MSM by FY15. One can look at this stock from a medium-term investment perspective.

Bajaj Electricals | BSE Code: 500031 | Volume: 116630 | Price: 159

Bajaj Electricals (BEL), one of the key players in the consumer durable sector, has been able to maintain its dominance over the years. This can be substantiated by the strong growth in its sales, with a CAGR of 25 per cent for the past six years. Also playing an important part are that the company’s 4100+ dealers and its 400000-strong retail network for lighting (86000 and 45000 for fans and appliances respectively) across India. The company is banking on the under-penetrated rural markets going forward, which is likely to take it to the next orbit of growth. Adding to its revenue visibility is an order worth Rs 757 crore that BEL’s engineering & project (E&P) division has bagged from North and South Bihar Power Distribution companies for various transmission-related works under the Rajiv Gandhi Grameen Vidyutikaran Yojana. These orders will be executed over the next 24 months. Investors can consider this stock for some medium-term gains.