Recommendations from Finance & Electricals Sector

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.

AAVAS FINANCIERS LTD. 

CMP - Rs. 1883.35
BSE CODE -541988
Volume -886
Face Value - Rs. 10
Target - Rs. 2100
Stoploss -Rs. 1780(CLS)

Aavas Financiers Limited, which was formerly Au Housing Finance Limited, is a housing finance company. It provides home loans to customers belonging to low and middle income segment in semi-urban and rural areas for the purchase or construction of residential properties and also if required for the extension and repair of existing housing units. On the quarterly financial front, the company reported a growth in asset under management (AUM) by 36.2 per cent to Rs. 7,195.1 crore in Q3FY20 from Rs. 5,283.4 crore in Q3FY19. Its net interest income (NII) for Q3FY20 rose by 9.3 per cent to Rs. 135.15 crore in Q3FY20 as compared to Rs. 123.67 crore in Q3FY19. Aavas Financiers gained a net profit of Rs. 67.87 crore in Q3FY20, which is an increase by 20.6 per cent from net profit of Rs. 56.27 crore gained in Q3FY19. Along with healthy growth in its financial performance, the company also has a very diversified and sustainable resource profile. Hence, we recommend a BUY.

DIXON TECHNOLOGIES (INDIA) LTD. 

CMP - Rs. 4296.50
BSE CODE - 540699
Volume - 3,979
Face Value -Rs. 10
Target -Rs. 4820
Stoploss -Rs. 3850 (CLS)

Dixon Technologies (India) Limited is a design-focused products and solutions company. It is engaged in manufacturing products in the consumer durables, lighting and mobile phones markets in India with a product portfolio consisting of consumer electronics, home appliances, lighting products and mobile phones. On the consolidated quarterly front, net sales were reported at Rs. 993.81 crore in Q3FY20, increasing by 25.17 per cent from Rs. 793.974 crore in Q3FY19. The PBDT expanded by 36.86 per cent to Rs. 45.30 crore in Q3FY20 from Rs. 33.10 crore in Q3FY19. Its net profit increased significantly to Rs. 26.30 crore in Q3FY20, thus clocking a growth of 49.09 per cent as compared to Rs. 17.64 crore in Q3FY19. The company continues to focus on new client acquisition and product additions along with higher capacity utilisations to aid revenue and profit growth. Hence, we recommend a BUY.