Reviews

DCM SHRIRAM INDUSTRIES

Ticker: 523369 FV: Rs.10
52-Week H/L: Rs.385/191.05

We had recommended DCM Shriram Industries in Volume No 34, Issue No 3 (dated Nov. 6, 2017), when the scrip was trading at Rs 340. Our recommendation was based on factors such as capacity expansion of alcohol with stable sugar prices. The sugar industry in India is struggling with two major crisis of surplus sugarcane production and falling prices since past 4-5 months. This had an adverse impact on the company as 70 per cent of its revenue is generated through the sugar segment. In the short term, the industry will continue to face pricing pressures. Recently, the company has forayed into defence equipment manufacturing which will develop and grow in the upcoming years. We expect limited upside in the stock price and as our target date has reached, we urge investors to EXIT the scrip.



TEAMLEASE SERVICES

Ticker: 539658 FV: Rs.10
52-Week H/L: Rs.2948/1026.50

We had recommended Teamlease Services in Volume No 34, Issue No 21 (dated Mar. 12, 2018), when the scrip was trading at Rs 2185. Our recommendation was based on factors such as robust financial growth and low-cost model. The company is penetrating in the temporary staffing market, which is expected to rise on favourable industrial tailwinds. Also, it has expanded its market in specialised staffing for telecom and IT, which will augur well for the company in the near term. It has forayed into new verticals and has introduced value-added services which will help it to grow going forward. Investors can hold the scrip for the medium term, but as our target price was achieved, we recommended investors to BOOK PROFIT on April 24, 2018.