Recommendations From Diversified & Electric Equipment 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.
GIC HOUSING FINANCE LTD.
CMP - Rs 187.75
BSE CODE : 511676
Volume : 86,387
Face Value : Rs 10
Target : Rs 210
Stoploss : Rs 172 (CLS)
The primary business of GIC Housing Finance Limited is granting housing loans to individuals and to persons or entities engaged in the construction of houses or flats for residential purposes. On a quarterly consolidated financial front, the income from interest was reported at Rs 289.91 crore for Q4FY21, a decrease by 7.11 per cent as compared to Rs 312.21 crore reported for Q4FY20. The total income calculated for Q4FY21 fell by 35.35 per cent to Rs 307.22 crore from Rs 317.08 crore in Q4FY20. For Q4FY21, the company reported net profit of Rs 79.7 crore compared to net profit of Rs 26.42 crore reported in Q4FY20, gaining significantly.The company has reported a strong performance in the fourth quarter of FY21. The housing finance companies are expected to regain profitability and the growth trajectory in FY22 while the stabilising of the corona virus cases still remains a concern area. Hence, we recommend BUY.
APAR INDUSTRIES LTD.
CMP - Rs 565.45
BSE CODE : 532259
Volume : 4,530
Face Value : Rs 10
Target : Rs 640
Stoploss : Rs 520 (CLS)
Apar Industries has grown into a diversified billion-dollar company and expanded to over 100 countries as a highly trusted manufacturer and supplier of conductors, a wide variety of cables, speciality oils, polymers and lubricants. In terms of consolidated quarterly results of the company, the net sales and operating income rose by 6 per cent from Rs 1,792.02 crore in Q4FY20 to Rs 1,899.46 crore in Q4FY21. The operating profit rose 2.81 per cent from Rs 107.26 crore in Q4FY20 to Rs 110.27 crore in Q4FY21. The company reported net profit at Rs 47.62 crore in Q4FY21 as compared to a net profit of Rs 23.33 crore reported in Q4FY20, indicating significant growth. The management expects the business segments of cables and conductors to gain traction from H1FY22, particularly from HTLS and OPWG conductors. Also, the transformer oil volume is expected to improve by 5-6 per cent while industrial and automotive segments are expected to rise in double digits. Hence, we recommend BUY.
(Closing price as of July 13, 2021)