Recommendation from Cement - Building Materials & Dyes - Pigments 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.  

ORIENT REFRACTORIES LTD

CMP - Rs 258.60
BSE CODE - 534076
Volume - 77,855
Face Value : Rs 1
Target : Rs 290
Stoploss: Rs 235 (CLS)

Orient Refractories Limited is engaged in the business of manufacturing refractories and monolithics as well as trading of refractory items. The company is a globally operating supplier of refractory products, systems and services for steel industries. On a consolidated quarterly basis, the net sales rose by 19.41 per cent from Rs 168.24 crore in Q3FY20 to Rs 200.88 crore in Q3FY21. The operating profit jumped from Rs 29.41 crore in Q3FY20 to Rs 35.99 crore in Q3FY21, clocking gain of 22.35 per cent. The company reported net profit of Rs 24.39 crore in Q3FY21 as compared to net profit of Rs 19.77 crore in Q3FY20. The Indian steel industry has a good chance to grab the existing opportunity as steel mills are pulling their socks up for a boost in demand from overseas buyers with the pandemic having choked up supplies from China. Hence, considering the company’s strong financial performance and positive growth prospects, we recommend BUY.

BODAL CHEMICALS LTD. 

CMP - Rs 97.40
BSE CODE : 524370
Volume : 2,12,810
Face Value : Rs 2
Target : Rs 110
Stoploss : Rs 86 (CLS)

Bodal Chemicals is an India-based company which through its subsidiaries manufactures dyestuffs, dyes intermediates and basic chemicals. The products of the company cover a range of chemicals, which are used as raw materials for dye intermediates and dyestuff. On a consolidated quarterly basis, the net sales rose by 12.19 per cent from Rs 326.36 crore in Q3FY20 to Rs 366.15 crore in Q3FY21.The operating profit jumped from Rs 27.84 crore in Q3FY20 to Rs 45.63 crore in Q3FY21, registering gain of 63.92 per cent. The company reported net profit of Rs 27.17 crore in Q3FY21 as compared to net profit of Rs 12.63 crore in Q3FY20. There is an improvement recorded in the worldwide demand scenario for the chemical sector. The company believes itself to be on a strong growth path with a stable standalone business model, improvement in performance of all subsidiaries and introduction of new capacities via expansion or diversification and acquisition. Hence, we recommend BUY.

(Closing price as of April 06, 2021)