Recommendation From Textiles- Manmade & Construction and contracting -Civil Sector
SRF LTD
CMP - Rs.3010.85
BSE CODE 503806
Volume 45,403
Face Value Rs.10
Target Rs.3200
Stoploss Rs.2850 (CLS)
SRF Ltd produces refrigerants, engineering plastics and industrial yarns in India.The company also manufactures polyester films and fluorospecialities. The business areas of the company includes chemicals, packaging films and yarn. On the financial front, the net sales grew 27.98 per cent in Q4FY19 to Rs.2034.81 crore as against Rs.1,589.98 crore posted in the same quarter of the previous year. The PBIDT grew by 42.31 per cent and stood at Rs.387.94 crore in Q4FY19, from Rs.272.61 crore posted in Q4FY18. The PAT was Rs.190.89 crore in Q4FY19 as against Rs.123.91 crore posted in Q4Fy18, thus witnessing a growth of 54 per cent YoY. Recently, SRF has entered into a definitive agreement to sell its engineering plastics business to DSM, the life sciences and material sciences company in an all-cash transaction, amounting to Rs.320 crore. The company's engineering plastics business manufactures multiple grades of engineering plastic compounds, catering to the automotive and electrical industries. We recommend a BUY.
KARDA CONSTRUCTIONS
CMP - Rs.214.30
BSE CODE 541161
Volume 1,232
Face Value Rs.10
Target Rs.238
Stoploss Rs.198(CLS)
Karda Constructions is a small-cap company having a market cap of Rs.263.59 crore in the construction, contracting and civil sector. Its core activities include construction contracts and real estate development of residential projects and residential-cum-office spaces projects. The revenue reported for Q4FY19 by the company was Rs.34.46 crore, which has grown by 39.74 per cent compared to the revenue of Rs.24.66 crore Q3FY19. The PBDT decreased by 15.38 per cent to Rs.3.41 crore in Q4FY19 as against Rs.4.03 crore for Q3FY19. Compared to the net profit of Rs.3.22 crore in the third quarter of FY18, it is 15.22 per cent lower at Rs.2.73 crore for the fourth quarter of the same fiscal. On the annual front, the company has recorded a revenue of Rs.105.30 crore for FY19. The PBDT and PBT were Rs.16.31 crore and Rs.16.04 crore, respectively. The net profit for FY19 was Rs.12.10 crore. Under its brand name ‘Hari', Karda Construction has few upcoming property projects. We recommend a BUY.
(Closing price as of June 18, 2019)