Recommendation From Food Processing & Diversified Sector

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. 

NESTLE INDIA 

CMP - Rs.11965.55 
BSE CODE 500790
Volume 1,316
Face Value Rs.10
Target Rs.12900
Stoploss Rs.11350 (CLS)

Nestle India Limited is a company having business operations in food and beverage peoducts. For Q4FY19 the company reported a revenue of Rs.3002.95 crore, which is an increase by 8.91 per cent compared to the revenue of Rs.2,757.24 reported for Q4FY18. PBDT stood at Rs.779.28 for Q4FY19. In Q4FY19, the net profit rose by 9.25 per cent to Rs.463.28 crore from Rs.424.03 crore. Looking at the annual financial trend, the company follows a January to December accounting period. Thus, the net sales in the accounting year ended December 2018 were Rs.11,292.27 crore, which is an increase by 10.79 per cent compared to the net sales of Rs.10,192.18 in the accounting year ended December 2017. The PBDT stood at Rs.2,764.62 and Rs.2,181.55 crore for accounting year ended December 2018 and December 2017, respectively. The net profit increased by 31.16 per cent for accounting year ended December 2018 to Rs.1,606.93 crore from Rs.1,225.19 crore for the accounting year ended December 2017. 


DCM SHRIRAM LIMITED 

CMP - Rs.568.55
BSE CODE 523367
Volume 10,919
Face Value Rs.2
Target Rs.635
Stoploss Rs.530 (CLS)

DCM Shriram conducts business in fertilisers, sugar and caustic soda products. The company manufactures urea, di-ammonium phosphate, pesticides, hybrid bioseeds, cement, Plaster of Paris, etc. The company’s manufacturing facility is located at Kota, Rajasthan. On the financial front, the company reported net sales of Rs.1,874.29 crore for Q4FY19, an increase of 20.89 per cent as compared to the net sales of Rs.1,550.35 crore reported for Q4FY18. The PBDT for Q4FY19 stood at Rs.411.79 crore, which is a significant increase by 380.84 per cent from Rs.85.64 crore for Q4FY18. The net profit rose by 366.34 per cent in Q4FY19 to Rs.288.48 crore from Rs.61.86 crore in Q4Y18. The company’s net sales increased by 11.16 per cent in FY 19 to Rs.7,684.38 crore from Rs.6,912.99 crore in FY18. The PBDT stood at Rs.1,335.24 crore and Rs.1,023.93 crore for FY19 and FY18, respectively. In FY19, the net profit increased by 31.72 per cent to Rs.906.83 crore from Rs.688.44 crore in FY18 

(Closing price as of July 02, 2019)