Stock Pick From Metal And Textile Sector.

RCI Industries & Technologies is engaged in the manufacturing of copper wire, lead free solders, tin-alloy solders, copper, brass, stainless steel-strips, international and domestic trading of ferrous and non-ferrous metals used in a range of electrical and industrial applications. RCI Industries & Technologies' revenue increased 38.48 per cent to Rs.381 crore in Q3FY17 as compared to same period in previous financial year. The company's EBITDA boosted more than two times to Rs.11.74 crore in Q3FY17 on yearly basis.

Its net profit also increased almost three folds to Rs.7.17 crore in Q3FY17 on YoY basis. RCI Industries & Technologies' net profit margin expanded by 98 basis points to 1.88 per cent in Q3FY17 on yearly basis. Seeing the strong financial numbers, we recommend to buy the stock with a target of Rs.272 with a stop loss of Rs.220.

SUMEET INDUSTRIES
 
CMP:34.05  |  ​BSE CODE:514211  | VOLUME:170433  |  FACE VALUE:10

Sumeet Industries is engaged in the business of polyester filament yarn. It offers various polyester products, including poly propylene (crimped and fully drawn) yarn, pre-oriented yarn (POY), polyester yarn, polyester chips, texturised yarn and dope dyed. It also manufactures carpet yarn or polyester multi filaments yarn (bundle yarn), fancy yarns and multiply yarn. Sumeet Industries export its products to countries, such as Saudi Arabia and Argentina.

Its board of directors has approved issue of equity shares upto Rs.60 crore by way of rights issue. It also evaluated the proposal of setting up coal based Captive Power Plant which will further reduce our power cost. The company is also setting up new texturising machines, which will also improve profit margins with estimated capital expenditure of Rs.100 crore. On company's expansion drive, we recommend to buy the stock with a target price of Rs.49 and with a stop loss of Rs.25.