Fundamentals

CEREBRA INTEGRATED TECHNOLOGIES LTD

Ticker: 532413 BUY: Rs.65
Target: Rs.73

The company's mainstream business segment is e-waste management and other segment includes annual maintenance contracts and electronic manufacturing services related to hardware products. It has set up offices in the Middle East and has more than 170 re-sellers. Recently, it has forayed into the refurbishment market, which has a strong potential in India in the long run. The company is currently operating at processing capacity of 36,000 tonnes p.a., with potential to increase to 96,000 tonnes p.a. Every year, India generates 18.5 lakh metric tonnes of e-waste, which shows that the company has huge potential to grow in this segment, going forward. For Q4FY18, its revenue and PAT increased tremendously by 90.9 per cent and 1080 per cent YoY, respectively. Considering its unique business model and robust growth, we recommend it as a BUY.



RELAXO FOOTWEARS LTD.

Ticker: 530517 BUY: Rs.713
Target: Rs.815

The company is engaged in manufacturing of diversified products like casuals, joggers, school and leather shoes. It has pan India presence with high penetration in southern and western regions. On the financial front, in Q4FY18, the company's revenue was up 17.2 per cent on a YoY basis. The EBITDA for the quarter rose by 36.1 per cent YoY and EBITDA margin stood at 17.5 per cent , which is highest as compared to the last few quarters. Its PAT has jumped by 68.8 per cent YoY, led by rise in revenue and lower finance costs. Currently, it has 300 outlets in India, which it plans to expand by adding 40 more in FY19. It expects double digit growth for FY19. It is also planning to foray into kids' and women's footwear categories, which are still underpenetrated. Thus, we recommend it as a BUY.