Stock Recommendations For Your Portfolio

NIIT Technologies | BSE CODE: 532541 | Volume: 23000 | CMP: Rs 356

NIIT Technologies has recently has created a new niche in the travel and transportation segment. More importantly, the company has recently shifted its focus on the non-linear in the BPO front, which will help to add to the margins and reduce costs over a period of time. It is also looking at the areas of intellectual property (IP) and package implementation, which are comparatively higher margin businesses, and in which it is still gaining traction. In addition, the company has an executable order book over the next 12 months. Its present order book stands at a value of USD 248 million. The company has a strong clientele including Virgin Group, SATS and British Airways, to name a few. It has maintained a consistent dividend payout ratio over the year, which is an added advantage. It is also investing in cloud computing, analytics, enterprise mobility and collaboration, which the management believes has great potential going ahead. One can look at investing in the counter from a medium-term perspective. 

BIOCON | BSE CODE: 532523 | Volume: 310000 | CMP: Rs 471

Biocon is once again grabbing the attention of investors. The most important factor that the market is taking into consideration is that the company’s domestic business, which contributes nearly 15 per cent of the revenues, is witnessing a CAGR of more than 30 per cent. The company is also poised to see better growth in the bio-pharma business, as the penetration level of immunosuppressants and insulin grows. The recent launch of Trastuzumab, which is used for treating breast cancer, also gives revenue visibility going forward. The Global Phase III trials have been initiated for the drug Herceptin, and have been completed for rh‐Insulin. The company is also one of the front‐runners in the regulated biosimilars market in the US and Europe. The stock has witnessed a run-up in the past few sessions, but it is believed that there still has some steam left. It has also been heard that some of the big domestic fund houses which have exited their position in the stock earlier have re-entered the counter.