Rs 1 Crore Portfolio for 2021
AKZO NOBEL INDIA LTD
Face Value : Rs 10
BUY: Rs 2,410.50
Akzo Nobel India Limited is engaged in the manufacturing of paints, varnishes, enamels, etc. On a consolidated financial front, for Q2FY21, the company’s net sales declined by 4.25 per cent to Rs 606.86 crore from Rs 633.82 crore reported in Q2FY20. The operating profit expanded by 38.83 per cent to Rs 110.34 crore in Q2FY21 from Rs 79.48 crore posted in Q2FY20. In Q2FY21, net profit rose by 34.58 per cent to Rs 66.28 crore, when compared to the net profit of Rs 49.25 crore gained in Q2FY20. Being one of the prominent leaders in the paints sector, the company will strongly benefit from its demand growth and hence, we recommend a BUY.
INDO-NATIONAL LTD
Face Value : Rs 10
BUY: Rs 725.00
Indo National Limited is a manufacturer of the famous NIPPO batteries and other products. The company had a difficult first quarter due to the pandemic’s effect on the demand in general but its Q2 results are promising. Its net sales have witnessed an increase of 80 per cent in Q2FY21 as compared to Q1FY21, but on a YoY basis, Q2FY21 saw a hike of 13.86 per cent compared to the previous year’s second quarter. Net profits saw a growth of 538 per cent from Q1 to Q2FY21 and 9 per cent from Q2FY20 to Q2FY21. The company’s earnings are expected to grow as the demand normalises. Hence, we recommend a BUY.
JOHNSON CONTROLS-HITACHI AIR CONDITIONING INDIA LTD
Face Value : Rs 10
BUY: Rs 2,655.05
The company is engaged in the business of manufacturing, selling, and trading of Hitachi brand of air conditioners (ACs), refrigerators, washing machines, etc. On a standalone quarterly front, its net sales de-grew by 17.66 per cent for Q2FY20 to Rs 310.08 crore from Rs 376.59 crore reported in the same period of the previous fiscal year. Its net loss was Rs 19.03 crore in Q2FY21 as compared to the net loss of Rs 0.64 crore incurred in Q2FY20. Hitachi being a global and a well-known brand would cater to the rising demands for air conditioners and related products, going forward. Hence, we recommend a BUY for this stock.
RUPA & COMPANY LTD
Face Value : Rs 1
BUY: Rs 306.50
Rupa & Company Limited is engaged in the manufacturing of knitted apparel, including hosiery. Looking at the consolidated quarterly trends, its net sales for Q2FY21 rose by 5.57 per cent to Rs 302.69 crore from Rs 286.73 crore reported for Q2FY20. The operating profit increased by 53.24 per cent YoY to Rs 68.22 crore in Q2FY21. Its net profit jumped by 41.97 per cent to be Rs 45.40 crore in Q2FY21 as compared to Rs 31.97 crore in Q2FY20. Recently, Abakkus Emerging Opportunities Fund-1 bought around 1.50 per cent stake in the company via a bulk deal. Considering the strong growth potential of Rupa & Company, we recommend a BUY.
TIPS INDUSTRIES LTD.
Face Value : Rs 10
BUY: Rs 318.20
Tips Industries is a well-known entertainment company, which is into the business of audio/video products, film production, and distribution. On a standalone quarterly basis, its net sales surged 40.2 per cent from Rs 11.75 crore in Q2FY20 to Rs 16.47 crore in Q2FY21. The profit after tax grew up massively by more than 150 per cent in the second quarter of FY21 as compared to the second quarter of FY20. This was observed due to a substantial reduction in interest and depreciation costs. Taking into consideration a strong growth in financials and the ever-growing entertainment industry, we recommend a BUY for this stock.
XCHANGING SOLUTIONS LTD
Face Value : Rs 10
BUY: Rs 86.20
Xchanging Solutions provide technology and procurement services, data integration, claim services in the insurance industry and others. The company has seen a slow increase from the first quarter to the second quarter in FY21, but on a YoY basis, the company showcased progress with an increase in the net sales by 11.08 per cent, Rs 52.03 crore at the end of Q2FY21 compared to Rs 46.84 crore in Q2FY20. Operating profit too saw a rise of 9.36 per cent from Rs 16.77 crore in Q2FY20 to Rs 18.34 crore in Q2FY21. The IT sector has witnessed a boost as the focus is slowly increasing towards the online platforms which will benefit the company as well. Hence, we recommend a BUY.