Recommendations from Construction - Contracting & Auto Ancillaries 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. 

J KUMAR INFRAPROJECTS LTD.

CMP - Rs 196.95
BSE CODE : 532940
Volume : 36,066
Face Value : Rs 5
Target : Rs 215
Stoploss : Rs 180 (CLS)

J Kumar Infraprojects Limited is engaged in construction activities. The company’s operations include construction of roads, bridges, flyovers, subways, over-bridges, skywalks and railway terminus and stations, among others. Considering the standalone quarterly results, the net sales rose by 2.92 per cent from Rs 793.03 crore in Q3FY20 to Rs 816.21 crore in Q3FY21.The operating profit dipped from Rs 126.86 crore in Q3FY20 to Rs 122.32 crore in Q3FY21, which is 3.58 per cent. The net profit declined by 19.36 per cent to Rs 44.91 crore in Q3FY21 as compared to Rs 55.69 crore in Q3FY20. The order book of the company expanded during the recent quarter, totalling up to orders worth Rs 22,952 million as of FY21. The company is also focusing on strong cash flow management through collection and improving working capitalization. Considering these factors which will enhance the growth of the company, we recommend BUY for this scrip.

TALBROS AUTOMOTIVE COMPONENTS LTD.

CMP - Rs 226.80
BSE CODE : 505160
Volume : 9,235
Face Value : Rs 10
Target : Rs 245
Stoploss : Rs 210(CLS)

Talbros Automotive Components is an automobile component manufacturer in the segments of twowheelers, passenger cars, light and heavy commercial vehicles, agriculture equipment, and industrial and off-road vehicles. Looking at the consolidated quarterly results, the net sales rose by 35.72 per cent from Rs 95.43 crore in Q3FY20 to Rs 129.52 crore in Q3FY21. The operating profit jumped from Rs 11.70 crore in Q3FY20 to Rs 21.13 crore in Q3FY21 by 80.66 per cent. The net profit significantly increased to Rs 7.85 crore in Q3FY21 as compared to Rs 2.17 crore in Q3FY20. The exports of the company’s products have surged from 20 per cent in FY20 to 24 per cent in the current year and the company aims to increase exports to 30 per cent in the coming five years. The vehicle scrappage policy of the government for the private sector will boost the demand for automobiles. Predicting the growth of company owing to its optimistic expansion plans, we recommend a BUY for this stock.

(Closing price as of March 09, 2021)