Recommendations from Engineering & Infrastructure 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.
KABRA EXTRUSION TECHNIK LIMITED
CMP - Rs 133.75
BSE CODE : 524109
Volume : 10,507
Face Value : Rs 5
Target : Rs 148
Stoploss : Rs 122 (CLS)
Kabra Extrusion Technik Limited is engaged in the sale of plastic extrusion machinery and also manufactures allied equipment. It specializes in providing plastic extrusion machinery for manufacturing pipes and films. Looking at the quarterly consolidated financial performance, the net sales for Q3FY21 declined by 6.54 per cent to Rs62 crore from Rs66.34 crore posted in Q3FY20. The company reported PBDT for Q3FY21 at 10.97 and at Rs7.05 crore for Q3FY20. The net profit for Q3FY21 contracted by 0.51 per cent to Rs5.80 crore in Q3FY21 compared to Rs5.84 crore in Q3FY20. Since the company is considered to be one of the largest players in the plastic extrusion machinery known for its innovative offerings, going forward it is expected to continue to its upward business trend. Hence, we recommend BUY.
LIKHITHA INFRASTRUCTURE LIMITED
CMP - Rs 133.75
BSE CODE : 543240
Volume : 73,145
Face Value : Rs 10
Target : Rs 310 Stoploss : Rs 260 (CLS)
Likhitha Infrastructure Limited provides infrastructure construction services. The company offers fabrication, erection, installation, and testing and commissioning of underground pipelines and gas distribution network. On the standalone financial front, the net sales for Q3FY21 grew by 49.15 per cent to Rs58.37 crore from Rs39.14 crore reported in Q3FY20. The operating profit expanded by 26.32 per cent to Rs13.41 crore in Q3FY21 compared to Rs10.62 crore posted in Q3FY20. The company gained a net profit of Rs9.51 crore in Q3FY21 which is an increase by 39.62 per cent compared to the net profit of Rs6.81 crore reported in Q3FY20. The company’s growth outlook looks positive based on its strong financial performance for the recent quarter. Hence, we recommend BUY.
(Closing price as of Feb 23, 2021)