Recommendations from Miscellaneous & textiles 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.
SIS Ltd
CMP - ₹ 548.90
BSE CODE :540673
Volume : 76,463
Face Value : ₹ 5
Target :₹ 620
Stoploss : ₹ 500 (CLS)
The Security and Intelligence Services Group is a market leader in security, facility management, and cash logistics’ services and operates in India, Australia, Singapore and New Zealand. The company is engaged in providing security and related services, facility management services, cash logistics services and alarm monitoring and response services. On a quarterly basis, the consolidated numbers of the company reported a 10 per cent increase in revenue at ₹ 2,600.8 crore as compared to ₹ 2,357.5 crore in the previous year for the same quarter. The operating profit was ₹ 104.4 crore in Q3FY22 as against ₹ 128.9 crore in Q3FY22. The net profit rose marginally to ₹ 100.6 crore compared to the net profit posted in Q3FY21 which was at ₹ 99 crore. The company has posted its highest-ever revenue and PAT in Q3FY22. The management believes that the continuing impetus on capital expansion spending-led growth shall provide strong tailwinds for SIS to accomplish its Vision 2025 goals. Hence, we recommend BUY.
Century Enka Limited
CMP - ₹ 591.60
BSE CODE :500280
Volume : 24,624
Face Value : ₹ 10
Target Rs640
Stoploss : ₹ 543 (CLS)
Century Enka is the largest producer of Nylon Filaments Yarn (NFY) and second-largest manufacturer of NTCF in India. Century Enka offers a broad product basket of NFY comprising of Monofilaments, Mother Yarn, FDY, draw textured, dope-dyed yarns, TOW, draw wound yarns. It has two plants in Pune and Bharuch to manufacture products meeting stringent quality standards. The sales of the company rose by 41.06 per cent to ₹ 561.93 crore in Q3FY22 as compared to the same period last year. Operating profit was at ₹ 70.1 crore vis-à-vis ₹ 44.7 crore in Q3FY21. Net profit of Century Enka rose 55.77per cent to ₹ 50.58 crore in the quarter ended December 2021 as against ₹ 32.47 crore during the previous quarter ended December 2020. The company’s Board members have approved a capital expenditure of ₹ 240 crore to become more competitive in tyre reinforcement market and ₹ 23 crore for increasing the capacity of draw texturized yarn and mother yarn. With a rock-solid quarterly performance, this company offers value addition. Hence, we recommend BUY.
(Closing price as of Feb 08, 2022)