Recommendations From Miscellaneous & Chemical 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.
Amber Enterprises India Ltd.
CMP - Rs 3,150.25
BSE CODE : 540902
Volume : 12,899
Face Value : Rs 10
Target : Rs 3,450
Stoploss : Rs 2,950(CLS)
Amber Enterprises India Ltd. is a prominent solution provider for air-conditioner OEM/ODM industry in India. The company has a key presence in RACs complete unit and deals in major RAC components with 10 manufacturing facilities across India focusing on different product segments. The consolidated quarterly results of the company reveal that net sales and operating income zoomed significantly percentage-wise from Rs259.45 crore in Q1FY21 to Rs707.93 crore in Q1FY22. The operating profit recorded at Rs49.27crore in Q1FY22 as against operating loss of Rs2.48 crore in Q1FY21. The company reported net profit at Rs11.20 crore in Q1FY22 as against net loss of Rs23.92 crore reported in Q1FY21. The recovery of demand post unlocking, stepping into the commercial AC segment, entry into export markets, participation in the PLI scheme along with multiplying opportunities in the mobility business will contribute in expanding the company’s growth in future. Hence, we recommend BUY.
BASF INDIA LTD.
CMP - Rs 3,617.30
BSE CODE : 500042
Volume : 2,208
Face Value : Rs 10
Target : Rs 3,980
Stoploss : Rs 3,360 (CLS)
BASF India Limited is a leading transnational company in the Indian chemical industry. The company’s portfolio is organised into four segments: chemicals, performance products, functional materials and solutions and agricultural solutions. The consolidated quarterly results of the company indicate that net sales and operating income rose by 68.65 per cent from Rs1,786.49 crore in Q1FY21 to Rs3,012.92 crore in Q1FY22. The operat-ing profit recorded at Rs293.25 crore in Q1FY22, giving a massive rise from operating profit of Rs15.55 crore recorded in Q1FY21. The company reported net profit of Rs197.28 crore in Q1FY22 as against net loss of Rs31.18 crore reported in Q1FY21. The company has obtained strong operational as well as product support from BASF SE, which is one of the leading chemical companies in the world. A higher level of integration between the parent and the Indian arm depicts synergies arising from similar businesses. Hence, we recommend BUY.