Kerbside
The recommendations provided in this column are taken from various market sources such as brokers, analysts, dealers and investment strategists, etc. These recommendations may not be backed by strong fundamentals. Therefore we advise readers to use their own discretion before investing in these recommendation.
INDEX BASED TRADING
MCX BSE
Code: 534091
CMP: Rs 881.70
The Multi-Commodity Exchange of India (MCX), the country’s largest commodity bourse, reported PAT below market expectations, which was largely impacted by change in valuation method of bond portfolio and lower other income. MCX launched four more options in Q1FY19 on crude oil, copper, silver and zinc. Among all options, the transactions in crude oil are the strongest considering recent volatility. Moreover, gold option turnover increased more than five-fold. As per our sources, discussion with the regulators has started for index-based trading in commodities and it is expected to launch in this financial year. A big positive for the company.
BOUNCE BACK
Bharat Forge
BSE Code: 500493
CMP: Rs 641
Bharat Forge, the flagship company of the Kalyani Group, is a true world leader when it comes to delivering innovative auto component solutions. The stock price of the company has seen correction on the back of worries about potential tariff actions. However, the stock is expected to bounce back amid its positive FY18 performance with 37.5% and 20.8% topline and bottomlline growth. Q1FY19 too is expected to post 20% plus YoY PAT growth with robust June sales growth, despite being a typically weak month. Rating agency Credit Suisse too has upgraded the rating to ‘Outperform’ forecasting FY19 to be very strong with major engines likely to be firing.
ROBUST RESULTS
Havells BSE
Code: 517354
CMP: Rs 634.25
Havells reported robust Q1FY19 results with strong growth across product categories coupled with margin expansion. If technical observations are to be believed, the stock could witness further upmove from the current levels as the stock has witnessed a breakout of a long consolidation along with robust volumes. Hence, this stock could be looked at for short term gains.
AND FINALLY..
Lemon Tree Hotels
BSE Code: 541233
CMP: Rs 78.25
This stock from the hotel sector has been buzzing this year as the occupancy rate recorded highest growth over a decade as per a report. Moreover, factors such as increasing disposable income has presented a rosy picture for this sector. Among all the hotel stocks, the stock of Lemon Tree Hotels looks attractive as it has presence in NCR, Bengaluru, Hyderabad and Chennai, as well as tier-I and tier-II cities of Pune, Ahmedabad and Chandigarh. It plans to enter new markets like Mumbai, Kolkata and Patna and has a development pipeline of 3,000 rooms across 28 new hotels in 21 new cities. Along with this, the company focuses on ‘Value for Money’ and offers attractive room rates for middle income domestic travellers. This hotel stock could light up the fortune of your portfolio.