Kerbside
The recommendations provided in this column are taken from various market sources such as brokers, analysts, dealers and investment strategists, etc. These recommendations may not be backed by strong fundamentals. Therefore we advise readers to use their own discretion before investing in these recommendation
STRONG NUMBERS
International Paper
APPM BSE Code: 502330
CMP: Rs515.75
The shares of paper companies have been buzzing on the bourses lately. One of the stocks which look pretty attractive is International Paper APPM. The company has reported strong set of numbers for the quarter ended September 2018. The revenue for the quarter surged to Rs336 crore as against Rs285 crore during the previous quarter ended September 2017. The company posted almost a six-fold jump in net profit to Rs37.44 crore in quarter ended September as against Rs5.76 crore during the quarter ended September 2017. The stock is ripe for another fresh leg of upmove.
RABI CROP UPL
BSE Code: 512070
CMP: Rs712.50
Post the announcement of the September quarter earnings, the stock has witnessed strong buying interest. UPL reported a constant currency growth of 12 per cent YoY in revenue with 4 per cent growth contributed by price increase and 8 per cent by volume. The erratic rainfall in Maharashtra and Andhra Pradesh affected consumption of cotton. However, companies believe that water reserves in dams in southern India are good and, therefore, the prospects of Rabi crop are good. The management has maintained a positive growth outlook. The optimistic mood among farmers in Latin America and new products are estimated to keep up the growth impetus.
LONG POSITIONS
Munjal Auto Industries
BSE Code: 520059
CMP: Rs65.25
The company is a leading auto component manufacturing company in India producing exhaust systems for two-wheelers and four-wheelers. The company also produces spoke rims for motorcycles and steel wheel rims. There is a strong buzz that the stock may come out with an announcement that may induce positive sentiments in the stock. A cartel of HNIs has been tracking the stock closely and, at the same time, has created long positions on the stock. Hence, investors with high risk appetite may create a long position in the stock.
AND FINALLY..
Escorts
BSE Code: 500495
CMP: Rs675.55
The engineering and farm equipment maker reported a 32.4 per cent surge in the net profit at Rs102.7 crore for the quarter ended September, 2018 as compared to the net profit of Rs77.6 in the corresponding period last fiscal. The revenue from operations stood at Rs1,398.4 crore, up by 15.4 per cent YoY. The management has maintained a positive outlook for FY19 with 12-15 per cent growth for the domestic tractor industry and over 30 per cent growth for the construction equipment industry. The railway division is also expected to witness decent growth. All in all, this stock could drive your portfolio with decent returns in the short-medium term.