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.

CAPEX CYCLE

Larsen & Toubro
BSE Code: 500510
CMP: Rs. 1504.95



L&T is India’s largest engineering and construction (E&C) company. The company operates in various key segments, including hydrocarbon, infrastructure, power, process industries, and defence. The likely recovery of India’s capex cycle, especially infra capex investments in road, railways, urban infrastructure and airport is likely to see strong push due to stable government at the Centre. Also, the growth from hydrocarbon sector would benefit the company substantially with double digit revenue growth and faster order book expansion. With the IIP numbers indicating a gradual recovery in the capital investment cycle, this stock is set to witness a perfect upswing.

STOCK ACCUMULATION

VIP Industries
BSE Code: 507880
CMP: Rs. 471.45

VIP is now the second largest player in the world and largest in Asia, commanding about 50 per cent of the market share in the luggage market in India. The company’s key brands are VIP, Skybags, Alfa, Aristocrat, Carlton and the latest entrant in the ladies handbag space Caprese. The stock has seen steady climb over the last week or so, despite the sharp sell-off seen in the markets. Our sources indicate that smart people are accumulating the stock in anticipation of some big announcement, which could induce a fantastic rally in the stock price.

BRIGHT PROSPECTS 

PI Industries
BSE Code: 523642
CMP: Rs. 1198.75



The company is a leading player in the domestic agricultural inputs sector, primarily dealing in agrochemicals and plant nutrients. In the contract manufacturing export segment, its business interests include dealing in custom synthesis and contract manufacturing of chemicals, which constitutes techno-commercial evaluation of chemical process, process development, lab and pilot scale-up, as well as commercial production. As per our sources, the future prospects of the company looks bright and this is the right time to pick this stock.

AND FINALLY.. 

Redington
BSE Code: 532805
CMP: Rs. 109.40



The stock markets have been volatile lately and not many stocks are witnessing a breakout. However, one of the leading technical analysts of country’s top institution suggests that during such a phase, if any of the stock witnesses a breakout, it should be accumulated in a phased manner as when the market starts participating, these stock will be the first to run-up. Hence, he suggests accumulating Redington as the volumes have seen a spike along with the price. Short term investors/traders can accumulate this stock with a proper stop loss.

(Closing price as of June 18, 2019)