The recommendations provided in this column are taken from various market sources such as brokers, analysts, dealers and investment strategists, etc. These recommendations may not be backed by strong fundamentals. Therefore we advise readers to use their own discretion before investing in these recommendation.
BUILDING A STRONG PORTFOLIO
Tata Consumer Products
BSE Code: 500800
The company recently announced that it will acquire the entire stake of PepsiCo’s stake in NourishCo Beverages Limited, consequently terminating the joint venture and making NourishCo Beverages a wholly-owned subsidiary of the company. This move is consistent with Tata Consumer’s focus on widening its portfolio in the food and beverages space. Over the last decade, NourishCo has focused on building brands in the healthy hydration space and has Himalayan mineral water, Tata Gluco Plus and Tata Water Plus in its portfolio. This is likely to be a positive development for the stock and we could see some positive momentum in the stock in the short term.
ON AN UPWARD SPIRAL
NSE Code: CDSL
Central Depository Services (CDSL) is one of two depositories in India. The stock has seen huge jump in the volumes along with the rise in the stock price. The 10-day average volume of is around 6.27 lakh whereas on Wednesday the stock has seen nearly threefold jump in the volumes. It is believed that the main reason for the spurt in the volume is that some savvy investors are buying shares of CDSL. On technical grounds, the stock has moved above its important moving average i.e. 20 and 50-EMA. Hence, risk-takers can go for this scrip and hope to make a quick buck.
ON A DISCOVERYTRAIL
BSE Code: 539268
Syngene International is involved in the business activities of scientific research and development. The company reported a 13 per cent rise in its Q4FY20 revenue driven by very strong performance in discovery and development services. It reported a jump of 20 per cent in its consolidated net profit to Rs 120 crore for the quarter ended March 31. The strong financial performance and strong breakout in adverse conditions of the market makes this stock one of the best stocks for short-term trading.
FINDING LUCRATIVE SOLUTIONS
BSE Code: 540005
LTI is a global technology consulting and digital solutions company. The company reported a revenue growth of 15.9 per cent YoY and the net income growth at 12.9 per cent YoY amidst constant currency revenue growth of 4.7 per cent QoQ and 17.4 per cent YoY. The company’s resilient business model, comprehensive digital transformation capabilities and flawless execution helped it to deliver fourth consecutive year of industry-leading double-digit revenue growth in FY20. It announced two large deals in Q4 with net-new TCV in excess of USD 100 million, culminating in a record eight large deal wins for them in FY20. An attractive buy.
(Closing price as of May 20, 2020)