Recommendations from Couriers & Chemicals Sectors
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.
BLUE DART EXPRESS
CMP - Rs 4081.05
BSE CODE : 526612
Volume : 3,438
Face Value : Rs 10
Target : Rs 4,500
Stoploss : Rs 3,710 (CLS)
Blue Dart Express provides integrated air and ground transportation. Its network is spread across countries providing distribution services, supply chain solutions and customer clearance. On a YoY basis, selling and distribution expenses saw a dip of 8.31 per cent, showing results of the costefficiency initiatives run by the company. Operating profit too came in strongly at Rs 233.24 crore, 75.36 per cent higher than Rs 133.01 crore from previous year’s quarter, which indicates the company’s capacity to steer back to the pre-pandemic levels. Net profit also saw an increase of 189.14 per cent which amounts to Rs 42.33 crore in Q2FY21. The company will be giving the Government of India the logistics support that will be required when the probable vaccine does arrive. Also, healthy revenues and initiatives to optimise costs make the stock an attractive bet. It has gained 5.31 per cent in the last 15 days. Considering these parameters, we recommend BUY.
VINATI ORGANICS LTD
CMP - Rs 1219.80
BSE CODE : 524200
Volume : 57,079
Face Value : Rs 1
Target : Rs 1,320
Stoploss : Rs 1,140 (CLS)
Vinati Organics Limited is into the business of manufacturing of organic and inorganic chemical compounds and nitrogenous energetic compounds having spread over 22 countries it exports products to customers across the US, Europe and Asia. Looking at the standalone quarterly financial results of the company, its net sales dipped by 11.92 per cent from Rs 249.14 crore in Q2FY20 to Rs 219.44 crore in Q2FY21. The operating profit de-grew even by 22.99 per cent at Rs 85.52 crore in Q2FY21 as compared to Rs 111.05 crore in Q2FY20. Net profit came in at Rs 62.04 crore in Q2FY21, inching down 43.61 per cent as against Rs 110.01 in Q2FY20. Possessing core strengths like cost-efficiency, captive research, local leadership, synergic integration, strong collaboration and an environment-friendly approach, Vinati Organics poses itself to be a company constantly thriving to outgrow the market. The stable credit ratings assigned to Vinati Organics include the long track record and experience of the promoters in speciality organic chemicals. Considering the above parameters we recommend BUY.
(Closing price as of Dec 29, 2020)