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.

TURNKEY PROJECTS

KEI Industries
BSE Code: 517569
 CMP: Rs. 499.60



KEI Industries is engaged in manufacturing wide variety of cables including low tension (LT), high tension (HT), extra high voltage (EHV) and stainless steel (SS) wires. The segment-wise Q4FY19 revenue was: cables 70% (Rs. 9,748 mn), turnkey projects: about 28 per cent (Rs. 3,865 mn) and stainless steel wires: about 2 per cent (Rs. 371 mn). Currently, the capacity utilisation is at 85% and the management plans to improve it further in FY20. The key demand drivers for the company will be government initiatives such as ‘Housing for All by 2022’, affordable housing under ‘Pradhan Mantri Awas Yojana’, and 100 Smart Cities. Low working capital requirements and better realisation will improve margins and make the retail segment the backbone of KEI’s growth model.

HEALTHY GROWTH

Aditya Birla Capital
BSE Code: 540691
CMP: Rs. 103.90

Aditya Birla Capital is the financial services platform of the Aditya Birla Group. The company focused on improving its operations in key verticals- housing finance, AMC and life insurance. The company’s top executive said that health insurance business will break even in three years. The company has efficiently steered a tough liquidity period for NBFCs in 2HFY19, with a solid performance on cost of funds, healthy growth rates and stable asset quality. The stock price is likely to rise in the near term.

RISING VOLUMES

REC
BSE Code: 532955
CMP: Rs. 148.70



REC is a Navratna company under the Ministry of Power. The company’s main business is to finance power sector. Rising volumes along with surge in price indicates that smart accumulation is going on in the stock. Also, there is murmur on D-Street that a favourable announcement is due for the stock in the coming weeks, which is likely to set the stock on fire. Traders and investors with a risk appetite may accumulate this stock for smart gains.

AND FINALLY..

Trent
BSE Code: 500251
CMP: Rs. 412.45



One of the renowned technical analysts of the D-Street is recommending this stock to his HNI clients. The stock has witnessed a breakout along with robust volumes and has seen a follow-through move as well, which indicates that the breakout is reliable. He suggests that the stock has the potential for decent upmove from the current levels. Hence, traders with high risk appetite may take a trading position in this stock with proper stop loss.

(Closing price as of June 04, 2019)