Recommendations From Cement & Finance 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.
HEIDELBERGCEMENT INDIA LTD.
CMP - Rs.196.90
BSE CODE 500292
Volume 35825
Face Value Rs.10
Target Rs.215
Stoploss Rs.185(CLS)
HeidelbergCement India Ltd is engaged in manufacturing of portland cement. Its product portfolio includes Portland Pozzolana Cement (PPC) and Portland Slag cement (PSC). The company has a total cement manufacturing capacity of 5.4 million tons per annum (MTPA) with clinker capacity of 3.4 MTPA. Its products are sold under the brand name of Mycem. On the standalone financial front, its net sales grew 8.34 per cent YoY in Q2FY20 to Rs.519.51 crore. The PBIDT rose 5.34 per cent to Rs.122.81 crore in Q2FY20 compared to Rs.116.58 crore posted in the same period of the previous year. The PAT rose 16.11 per cent to Rs.58.15 crore in Q2FY20 from Rs.58.15 crore posted in Q2FY19. Of recent, to optimize usage of natural resources, improve workforce safety and productivity as well as to ensure stringent environmental compliance and affect cost-effective production, the company continues to invest in automation and digitization of processes across the production chain. We recommend a BUY.
CREDITACCESS GRAMEEN LTD.
CMP - Rs.699.40
BSE CODE 541770
Volume 14489
Face Value Rs.10
Target Rs.760
Stoploss Rs.655(CLS)
CreditAccess Grameen Ltd which was formerly known as Grameen Financial Services Private Ltd is a non-banking financial company. It is engaged in the microfinancing sector, hence its services are focused towards the rural poor and low income households and particularly women. It issues microcredit loans for micro-enterprises, and provides house construction credit, micro insurance, etc. On a standalone basis, the company reported net sales of Rs.391.53 crore for Q2FY20 which increased by 26.41 per cent compared to net sales of Rs.309.72 crore reported for Q2FY19. The PBDT for Q2FY20 stood at Rs.133.22 crore which is a significant increase of 14.67 per cent from Rs.116.18 crore for Q2FY19. The net profit rose by 37.33 per cent in Q2FY20 to Rs.100.88 crore from Rs.73.43 crore in Q2Y19. The company’s executive borrowings and investment committee finalised the terms of issue of unlisted, unrated, senior secured, redeemable, transferable NCDs aggregating to around Rs.214 crore to Nederlandse Financierings Maatschappij Voor Ontwikkelingslanden N.V. (FMO) on preferential basis. We recommend a BUY.
(Closing price as of Nov 05, 2019)