Stock Recommendations For Your Portfolio

GUJARAT GAS COMPANY | BSE CODE : 517385 |Volume :17219 | CMP :Rs 245

The decline in the volumes that Gujarat Gas has seen in the last few years is likely to reverse as the company is expanding into new territories which encompass large industrial belts. Also, the industrial activity is expected to pick up gradually going forward. The main trigger is that the company is looking forward to the availability of cheap gas from nominated fields of ONGC and Oil India which will enable Gujarat Gas to bring down CNG prices. This in turn is likely to spur the demand for CNG. Also, the company has changed its mix with regards to segments like power generation, process heat and combined heat & power, whereby better margin process heat contribution has increased to 80 per cent from 35 per cent in CY10. The sharing of network and gas swapping with GSPC is likely to be value accretive going ahead. Even if the gas prices are raised from April 2014, Gujarat Gas will be relatively less impacted as domestic APM gas accounts for only 15 per cent of its supply.

JK LAKSHMI CEMENT | BSE CODE : 500380 |Volume :30374 | CMP :Rs 97

with strong presence in the north, east and west regions of the country, JK Lakshmi Cement (JKLC) is likely to benefit from an improved demand in its key markets, which in turn would support higher dispatches and realisations. The strong base of the company viz. the north and the north-west regions (especially Rajasthan/ Gujarat) have witnessed the steepest price hikes. The hike is in the range of up to `40-70 per bag, with sharper hikes in the non-trade segment. The hike was mainly due to the shutdown of the plant by Binani Cement, which has driven supply shortage in the north, and some improvement in demand. In Rajasthan, the SC verdict on sand mining, which could have led to pricing pressure, was deferred till March 31. The company is doubling its capacity to 10 mtpa by FY15-end as per schedule. Also, the company is expanding its footprint in other parts of the country, which in addition, is likely to augur well for the company.