RECOMMENDATIONS
Technocraft Industries
Ticker : 532804 BUY: Rs.560 Target: Rs.645
The company is engaged in the manufacture of drum closures, tubes and scaffoldings, knitted and crocheted cotton fabrics, textile garments, and preparation and spinning of cotton fibre. On the financial front, the company’s revenue grew by 12.9 per cent YoY in Q2FY18, while its operating profit and net profit increased by 14.03 per cent and 27.5 per cent, respectively, on a YoY basis. In FY17, it had delivered ROE of 16.6 per cent which is better than its peers. It is the second largest manufacturer of steel drum closures and has worldwide market share of 36 per cent. The company is expecting to grow by 15 per cent in FY18. It has scaffolding facilities with capacities of 36,000 MT and 25,000 MT in India and China and the management expects this division to earn Rs 400 crore turnover. Hence, we recommend readers to BUY this scrip.
HAWKINS COOKERS
Ticker : 508486 BUY: Rs.3147 Target: Rs.3620
Hawkins is one of the largest players in the pressure cooker and cookware segment having revenue mix of 81 per cent and 19 per cent, respectively. It has three manufacturing facilities and, over the years, it has sold more than 7.2 crore pressure cookers in the domestic market. The company has huge brand recognition and focuses on introducing innovative products which drives its topline. Its sub-brands ‘Futura’ and ‘Miss Mary’ attract extensive demand in the market. In Q2FY18, the company’s revenue was up by 13.8 per cent YoY and PAT jumped by 55.5 per cent YoY. Its PAT margin improved from 8.4 per cent to 11.5 per cent. In FY17, the company had delivered ROE and ROCE of 54.3 per cent and 63.8 per cent, which is highest amongst its peers. Hence, we recommend readers to BUY this scrip.