Recommendations from Pharmaceuticals & Plastic Products Sectors

This section gives you some of the momentum stocks which are in buzz for past few days and are expected to give quick returns in a 15-day horizon.

ALEMBIC PHARMACEUTICALS LTD 

CMP - Rs 632.50
BSE CODE 533573
Volume 16,789
Face Value Rs 2
Target Rs 700
Stoploss Rs 583(CLS) 

Alembic Pharmaceuticals Limited is engaged in developing formulations and active pharmaceutical ingredients (APIs). It focuses on antiinfective, analgesic and cough and cold therapies, etc. On the consolidated financial front, the company reported net sales of Rs 1,209.13 crore for Q3FY20 which increased by 18.76 per cent compared to net sales of Rs 1,018.15 crore reported for Q3FY20. The PBT for Q3FY20 stood at Rs 275.91 crore, registering a growth of 31.98 per cent from Rs 209.06 crore for Q3FY20. The net profit rose by 34.46 per cent in Q3FY20 to Rs 227.31 crore from Rs 169.06 crore in Q3FY20. The company’s net sales increased by 25.68 per cent in FY19 to Rs 3,934.68 crore from Rs 3,130.81 crore in FY18. The PBDT stood at Rs 864.55 for FY19 as compared to Rs 646.73 for FY18, thus expanding by 33.68 per cent. In FY19, the company’s net profit rose by 40.78 per cent to Rs 592.57 crore from Rs 420.91 crore in FY18. Alembic Pharmaceutical’s growth is backed by consistent and successful product launches. Hence, we recommend a BUY.

ASTRAL POLY TECHNIK 

CMP - Rs 1,187.30
BSE CODE 532830
Volume 6,079
Face Value Rs 1
Target Rs 1300
Stoploss Rs 1100 (CLS) 

Astral Poly Technik is engaged in the production of plastic products and primarily deals with the business of manufacturing and trading of pipes, fittings and adhesive solutions. On the consolidated quarterly front, net sales were reported at Rs 678.3 crore in Q2FY20, increasing by 8.46 per cent from Rs 625.4 crore in Q2FY19. The company’s operating profit increased by 34.54 per cent to Rs 85.7 crore in Q2FY20 from Rs 63.7 crore in Q2FY19. Its net profit increased significantly to Rs 82.3 crore in Q2FY20 as compared to Rs 45.1 crore in the same quarter for the previous fiscal year. Astral Poly Technik has created a pull factor amongst retail customers through superior branding which gives it pricing power over its peers. Moreover, the company’s innovative and superior product offerings, pan-India distribution network, strategically located plants, and focus on branding are the key drivers that will boost earnings’ growth. We thus recommend a BUY.