Stock Recommendations For Your Portfolio

EXIDE INDUSTRIES| BSE CODE: 500086| VOLUME: 359439| CMP: Rs.173

Exide industries is one of the leading manufacturers of lead-acid storage batteries for automotive and industrial applications in India. It has a strong clientele base comprising of Mahindra, Maruti, Hero, Volkswagen etc. With the auto automobile sector showing some signs of recovery the sales are expected to increase. This will be a big positive for the auto ancillaries’ such as Exide industries. Lead, one of the most important raw material in manufacturing process has been stable on the pricing front, trading at USD 2105.24/mt in January-March’2014 as against USD 2300/mt in January-March’2013. So, the raw material cost will significantly go down improving the topline of the company. The net profit of the company increased 16.68 per cent to Rs.  185.30 crore in June’2014 quarter as against Rs.  158.80 crore in same quarter last year. Its price to earnings stands at 27x in June’2014 quarter as compared to 26.05x in March’2014 quarter. With the expected increase in automobile sales, strong brand presence and distribution network; exide industries is expected to do well in coming trading sessions.

HATSUN AGRO | BSE CODE: 531531 | VOLUME: 9829 | CMP: Rs.303

Hatsun Agro Product is the largest private diary in the country. Hatsun’s revenues have doubled in the past four years to Rs.  2,500 crore in FY14; its net profit has more than quadrupled during the period to Rs.  81 crore. From the current EBITDA margin of 7.5 per cent, the company intends to improve the margin to 10 per cent in the next couple of years through cost-effectiveness. The company will meet on September 23, to consider issue of shares on a preferential basis. Hatsun Agro focuses in branded products of ice cream, milk, curd, paneer and other things. In FY14, the company derives 96 per cent of the revenue from branded products; earlier 75 per cent revenue comes from branded.