Recommendations from Infrastructure - General and Household & Personal Products 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.
ADANI PORTS AND SPECIAL ECONOMIC ZONE LIMITED
CMP - Rs 798.15
BSE CODE : 532921
Volume : 11,78,264
Face Value : Rs 2
Target : Rs 885
Stoploss : Rs 740 (CLS)
Adani Ports and Special Economic Zone Limited (APSEZ) is known as India’s largest private multi-port operator. APSEZ represents a large network of ports with India’s largest SEZ at Mundra. As regards the consolidated quarterly results of the company, its net sales and operating income improved by 23.51 per cent from Rs 2,921.19 crore in Q4FY20 to Rs 3,607.90 crore in Q4FY21. The operating profit surged up by massively from Rs 1,078.71 crore in Q4FY20 to Rs 2,775.48 crore in Q4FY21. The company reported significant increase in net profit at Rs 1,327.15 crore in Q4FY21 as compared to net profit of Rs 344.47 crore reported in Q4FY20. It reported that ports excluding Mundra achieved a CAGR of 38 per cent, fuelling exponential growth. Strategic partnerships, as for example with Total in LNG and LPG business and MSC and CMA-CGM in the container business, will provide further investment impetus. Hence, we recommend BUY.
VIP INDUSTRIES LIMITED
CMP - Rs 382.70
BSE CODE : 507880
Volume : 53,111
Face Value : Rs 2
Target : Rs 425
Stoploss : Rs 350(CLS)
Headquartered in Mumbai, VIP Industries is India’s largest luggage manufacturer which produces and markets luggage and travel accessories. It is the world’s third-largest and Asia’s largest luggage maker. As regards the consolidated quarterly results of the company, its net sales and operating income took a dip by 21.78 per cent from Rs 310.66 crore in Q4FY20 to Rs 243 crore in Q4FY21. The operating profit shrunk by 49.31 per cent from Rs 38.47 crore in Q4FY20 to Rs 19.5 crore in Q4FY21. The company reported net loss of Rs 3.78 crore in Q4FY21 as compared to net profit of Rs 9.52 crore reported in Q4FY20. However, in spite of the shaky financial performance for the quarter, the company is well-placed in its liquidity position as it continues to be positive on cash. The company has shifted sourcing of products from China to Bangladesh. Hence, owing to the company’s strong manufacturing capabilities in Bangladesh for soft luggage, we recommend BUY.
(Closing price as of June 01, 2021)