Recommendations from compressors & chemical 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.
Ingersoll- Rand (India) Ltd.
CMP - Rs 1,412.70
BSE CODE : 500210
Volume : 7,551
Face Value : Rs 10
Target : Rs 1,550
Stoploss : Rs 1,300 (CLS)
Ingersoll Rand is a global market leader with a broad range of innovative and mission-critical air, fluid, energy, specialty vehicle and medical technologies, providing services and solutions for increasing industrial productivity and efficiency. On a quarterly basis, the standalone numbers of the company reported net sales and operating income at ₹ 248.92 crore in Q2FY22, a significant rise of 67.97 per cent from ₹ 148.19 crore reported in Q2FY21.The operating profit of Q2FY21 of ₹ 28.39 crore improved to ₹ 39.18 crore in Q2FY22. The company reported a net profit at ₹ 26.03 crore in Q2FY22 as compared to the net profit of ₹ 18.3 crore reported in Q2FY21. The company is known for its superior quality products in the segment from the customers’ perspective. The industries requiring the products manufactured by the company are growing, which provides it with a huge opportunity to enlarge its market share and reach out to new customer base. Hence, we recommend BUY.
VINATI ORGANICS LTD.
CMP -₹ 2,124.20
BSE CODE :524200
Volume : 2,668
Face Value : ₹ 1
Target : Rs 2,300
Stoploss : Rs 1,990 (CLS)
Vinati Organics is a leading manufacturer of specialty chemical and organic intermediaries with global market leadership in its two key products, namely, 2- Acrylamido 2 Methylpropane Sulphonic Acid (ATBS) and Isobutyl Benzene (IBB). Starting with IBB and subsequent foraying into IB, ATBS, Butyl Phenols, the company is now moving towards antioxidants. The company has witnessed a robust jump of 70.47 per cent in the net sales and operating income from ₹ 219.44 crore in Q2FY21 to ₹ 374.10 crore in Q2FY22. The operating profit also soared from ₹ 85.52 crore in Q2FY21 to ₹ 114.57 crore in Q2FY22. The quarter saw a net profit of ₹ 81.33 crore as compared to ₹ 62.04 crore in Q1FY21, clocking impressive gain of 31.1 per cent. The company’s vertical integration into antioxidant is likely to expand the revenue visibility, whereas the strong demand from ATBS is expected to support operating margins. Hence, on the back of better growth outlook, we recommend BUY.
(Closing price as of Jan 21, 2022)