Stock Recommendations For Your Portfolio

A Powerful Equation

KALPATARU POWER TRANSMISSION LTD.

KALPATPOWR | BSE CODE: 522287 | VOLUME:133466 | CMP: Rs.242 | FACE VALUE: Rs.2

Kalpataru Power Transmission (KPTL) is a leading player in the power sector conducting EPC business. During the first half of FY15 the company reported 29 per cent growth in PAT at Rs 84.56 crore and its topline grew by 19 per cent to Rs 2,234 crore. The order book position for KPTL is about Rs 5,500 crore of which about 2/3rd order book is from the international market. It has received orders of around Rs 900 crore so far in FY15. KPTL now is qualified for most of the large orders from the railway and pipeline sectors. Its infrastructure order book stands at Rs 568 crore. A large amount of traction is expected in the railways and infrastructure pipelines in the future. Overall the KPTL management expects FY15 sales growth to be around 12-15 per cent and for FY16 the sales growth will be upwards of 15 per cent while the EBITDA margin for FY15 is expected to be around 10 per cent.

Getting Into Top Gear

GUJARAT AUTOMOTIVE GEARS LTD.

GUJAUTO | BSE CODE: 505712 | VOLUME:49302 | CMP: Rs.340 | FACE VALUE: Rs.2

Gujarat Automotive Gears (GAGL) is a leading manufacturer and exporter (around 98 per cent of the sales) of tractor and truck parts like king pins and transmission components for the European and North American markets, serving the aftermarket and OEMs for truck and tractor parts. It has presence in countries like Germany Italy, United Kingdom, Egypt, Sri Lanka, Singapore, Malaysia, Thailand, Belgium, Dubai, Australia United States of America, etc. It’s a debt-free company. The company’s promoters have consistently increased their stake, currently at 67.11 per cent as on December 31, 2014 - up from 63.34 per cent a year ago. GAGL will hold a board meeting on January 30, 2015 to discuss and approve the Q3 FY15 result and to review the status of the merger of the company with Him Teknoforge that has acquired substantial stake in the company at Rs 1,137 per share (FV Rs 10 per share) in 2013.