Recommendation From Electric Equipment & Computer-Software 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.
APAR INDUSTRIES LTD.
CMP - Rs 641.05
BSE CODE : 532259
Volume : 6,942
Face Value : Rs 10
Target : Rs 715
Stoploss : Rs 575 (CLS)
Apar Industries has grown into a diversified billion-dollar company and expanded to over 100 countries as a highly trusted manufacturer and supplier of conductors, a wide variety of cables, speciality oils, polymers and lubricants. The consolidated quarterly results of the company show that net sales and operating income rose by 40.41 per cent from Rs1,288.79 crore in Q1FY21 to Rs1,809.62 crore in Q1FY22. The operating profit recorded at Rs141.31crore in Q1FY21, giving a massive rise from operating profit of Rs39.33 crore recorded in Q1FY22. The company reported net profit of Rs62.29 crore in Q1FY22 as against net loss of Rs23.07 crore reported in Q1FY21. The company has reported a robust set of numbers attributed to pick-up in oil and conductor segment realisations, given the better product mix. The domestic volumes are expected to escalate gradually as the automotive segment recovers. Hence, we recommend BUY.
FIRSTSOURCE SOLUTIONS LTD.
CMP - Rs 203.8
BSE CODE : 532809
Volume : 4,66,766
Face Value : Rs 10
Target : Rs 225
Stoploss : Rs 185 (CLS )
Headquartered in Mumbai, Firstsource Solutions Limited is an Indian business process management company. It provides BPM services to several sectors including banking and financial services, customer services, telecom and media and healthcare. On a quarterly basis, the consolidated numbers of the company report net sales and operating income at Rs1,484.80 crore in Q1FY22, 39.79 per cent higher than Rs1,062.19 crore reported in Q1FY21. The operating profit gained 42.98 per cent from Rs166.68 crore in Q1FY21 to Rs238.32 crore in Q1FY22. The company reported net profit at Rs133.68 crore in Q1FY22 in comparison to net profit of Rs88.67 crore reported in Q1FY21, clocking gains of 50.75 per cent. Recently, the company announced the launch of Firstsource Healthcare Cloud, a new and innovative platform which will support all US’ healthcare products with enhanced access, flexibility and security capabilities. Hence, predicting an improved operational and financial performance of the company in the future, we recommend BUY.