Recommendation From Agrochemicals & Industrial Machinery 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. 

PI INDUSTRIES 

CMP - Rs 884.60
BSE CODE 523642
Volume 42048
Face Value Rs 1
Target Rs 1020
Stoploss Rs 820 (CLS) 

PI Industries is engaged in the manufacture and distribution of agro-chemicals, plant nutrients and plant protection, hybrid seeds and specialty fertilizers. The company’s net sales came in at Rs 707.5 crore for the quarter ended December 2018, up by 31.5 per cent YoY from Rs 537.74 crore in the corresponding quarter last year. The company reported a net profit of Rs 107.3 crore, up by 33.05 per cent as against Rs 80.6 crore in the corresponding period last year. The domestic revenue grew by 9 per cent YoY despite soft demand in the current quarter on account of poor rainfall in rabi and low agri-produce prices. Going forward, the outlook for the company is good considering positive trend in the domestic business where the company’s branded portfolio is expected to drive expansion. The company has also indicated its intentions to enter in the fluorine space and also plans to make significant in roads in the pharma space. We recommend a BUY on the stock 

GREAVES COTTON 

CMP - Rs 123.70
BSE CODE 501455
Volume 43061
Face Value Rs 2
Target Rs 135
Stoploss Rs 114 (CLS) 

Greaves Cotton supplies engines to almost all major OEMs in the country and supplies around 400,000 engines per year. The company is looking to increase its presence in the areas of powertrain and charging and battery swapping technologies.The company’s net sales for Q3FY19 on a standalone basis came in at Rs 506.46 crore, up 13.23 per cent YoY from Rs 447.28 crore in December 2017. The company’s net profit came in at Rs 42.71 crore as against Rs 55.61 crore in the quarter ended December 2017, registering a de-growth of 23.2 per cent. Greaves Cotton is an engine maker for various automobile manufacturers. The company is evolving its business strategy to address future needs of the automotive industry like CNG and electric vehicles. The company operates in four verticals, namely, mobility, farm, power and energy and after-market. The company expects mobility solutions to drive future growth. We recommend a BUY