Recommendation From Diversified & Pesticides & Agrochemicals 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.
INDIAN ENERGY EXCHANGE LTD.
CMP - Rs 430.95
BSE CODE : 540750
Volume : 1,54,830
Face Value : Rs 1
Target : Rs 475
Stoploss : Rs 395 (CLS)
Indian Energy Exchange (IEX) is an Indian electronic system-based power trading exchange regulated by the Central Electricity Regulatory Commission. IEX started its operations on June 27, 2008. In terms of the consolidated quarterly results of the company, net sales and operating income rose by 34.1 per cent from Rs 67.88 crore in Q1FY21 to Rs 91.03 crore in Q1FY22. Operating profit gained 41.35 per cent from Rs 61.34 crore in Q1FY21 to Rs 86.71 crore in Q1FY22. The company reported net profit at Rs 62.10 crore in Q1FY22 as compared to net profit of Rs 42.09 crore reported in Q1FY21, reporting growth of 47.54 per cent. Over the last few quarters while the entire economy has been facing the brunt of the pandemic, IEX achieved the highest volumes and profitability. In this quarter, the company witnessed growth across its product segments led by incremental demand and gradual shift from other power markets. Hence, we recommend BUY.
HERANBA INDUSTRIES LTD.
CMP - Rs 797.30
BSE CODE : 543266
Volume : 31,959
Face Value : Rs 10
Target : Rs 900
Stoploss : Rs 740 (CLS)
Heranba Industries Ltd. is one of the leading agrochemical players in India and manufactures synthetic pyrethroids and its intermediates. It has a wide network of business in India as well as in the global market with a phenomenal growth rate year after year. The consolidated quarterly results of the company reveal that net sales and operating income zoomed by 30.55 per cent from Rs 269.17 crore in Q1FY21 to Rs 351.41 crore in Q1FY22. Operating profit recorded growth of 58.59 per cent from Rs 43.57 crore in Q1FY21 to Rs 69.09 crore in Q1FY22. The company reported net profit at Rs 47.39 crore in Q1FY22 as compared to net profit of Rs 28.58 crore in Q1FY21, reporting a rise of 65.79 per cent. The company’s diversified customer base across geographies helps to mitigate risks and to benefit from expected growth in the agrochemical market. Also, it is well-positioned to exploit opportunities offered by growth in the pyrethroids market. Hence, we recommend BUY.
(Closing price as of Aug 24, 2021)