Recommendation From Realty & Pharmaceuticals 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. 

BRIGADE ENTERPRISES LTD

CMP - Rs. 272.90
BSE CODE 532929
Volume 23,931
Face Value Rs.10
Target Rs.295
Stoploss Rs.257 (CLS)

Brigade Enterprises Ltd is engaged in developing residential, commercial and retail properties primarily in Bangalore and Mysore, and has also developed and is managing a number of serviced apartments under the brand, Brigade Homestead. The company has a uniquely diverse multi-domain portfolio that covers property development, property management services, hospitality and education. The company also engaged in the business of real estate, hospitality, lease rentals. On the financial front, the net sales grew 58 per cent in Q4FY19 YoY to Rs464.57 crore. The PBIDT rose 40 per cent to Rs142.71 crore in Q4FY19 as compared to Rs102.5 crore posted in the same period of the previous year. The PAT rose 50 per cent to Rs65.25 crore in Q4FY19 from Rs43.28 crore posted in Q4FY18. Of recent, Brigade Enterprises is planning to increase the authorised share capital of the company from Rs150 crore divided into 15 crore equity shares of Rs10 each to Rs250 crore divided into 25 crore equity shares of Rs10 each. We recommend a BUY. 



SUN PHARMACEUTICAL INDUSTRIES LTD.

CMP - Rs. 433.25
BSE CODE 524715
Volume 506,834
Face Value Rs.1
Target Rs.470
Stoploss Rs.400 (CLS)

Sun Pharmaceuticals Industries Limited is a pharmaceutical company having US business, Indian branded generics business, emerging markets, global consumer healthcare business and active pharmaceutical ingredients (APIs). The company manufactures generics, branded generics, specialty products, over-the-counter (OTC) products, anti-retroviral (ARVs), APIs and intermediates in a range of dosage forms, which include tablets, capsules, injectables, ointments, creams and liquids. On the financial front, the company reported net sales of Rs2,552.13 crore for Q4FY19, an increase by 11.78 per cent compared to Rs2,283.18 crore for Q4FY18. The PBDT for Q4FY19 stood at Rs1,118.36 crore, a significant increase by 326.01 per cent from Rs262.52 crore for Q4FY18. The PAT rose by 505.96 per cent in Q4FY19 to Rs1,068.06 crore from Rs176.26 crore in Q4FY18. The company’s net sales increased by 29.64 per cent in FY19 to Rs10,303.21 crore from Rs7,947.60 crore in FY18. We recommend a BUY.