Recommendation from Cement - Major & Specialty Chemicals Sectors
The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.
ORIENT CEMENT LIMITED
CMP - Rs 111.75
BSE CODE : 535754
Volume : 2,13,211
Face Value : Rs 1
Target : Rs 127
Stoploss : Rs 98 (CLS)
Orient Cement, a part of Orient Paper and Industries, is one of the fastest growing and leading cement manufacturers in India. With a total capacity of 8 MTPA, the company serves Maharashtra, Telangana, Andhra Pradesh, Karnataka and parts of Madhya Pradesh, Tamil Nadu, Kerala, Gujarat and Chhattisgarh. The standalone quarterly results of the company report that the net sales and operating income rose by 7.11 per cent from Rs 564.49 crore in Q3FY20 to Rs 604.61 crore in Q3FY21. The operating profit significantly jumped from Rs 57.62 crore in Q3FY20 to Rs 144.06 crore in Q3FY21. The company reported net profit of Rs 53.88 crore in Q3FY21 as compared to net loss of Rs 5.67 crore in Q3FY20. Recently, the Indian environment ministry has given a nod for Orient Cement’s Rs 2,100 crore expansion plan for its Telangana plant. Hence, witnessing a healthy pickup in infrastructure activities and stronger recovery in demand, we recommend BUY.
FINEOTEX CHEMICAL LIMITED
CMP - Rs 78.85
BSE CODE : 533333
Volume : 2,78,576
Face Value : Rs 2
Target : Rs 94
Stoploss : Rs 71(CLS)
Based in Mumbai, Fineotex Chemical is a multinational company engaged in manufacturing of speciality chemicals and enzymes for the textile and garment industry, water treatment industry, leather industry, construction industry, paint industry agrochemicals, adhesives and others. The consolidated quarterly results of the company show that the net sales and operating income rose by an attractive 72.13 per cent from Rs 43.58 crore in Q4FY20 to Rs 75.02 crore in Q4FY21. The operating profit significantly jumped from Rs 7.98 crore in Q4FY20 to Rs 15.76 crore in Q4FY21, registering gain of 97.63 per cent. The company reported net profit of Rs 11.22 crore in Q4FY21 as compared to net loss of Rs 6.13 crore reported in Q4FY20. The company has set up a new manufacturing plant at Ambernath. It has also made a successful entry into home care and hygiene chemicals by launching multiple products across the segment. Hence, we recommend BUY.
(Closing price as of May 03, 2021)