Recommendations from Textile Healthcare 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.
Suryaamba Spinning Mills Ltd.
CMP - Rs 183.40
BSE CODE : 533101
Volume : 5,084
Face Value : Rs 10
Target : Rs 205
Stoploss : Rs165 (CLS)
Suryaamba Spinning Mills Ltd. Started in 1993, Suryaamba Spinning Mills Ltd. is a leading manufacturer of speciality synthetic spun yarns. The core competitive strength of the company is its innovative product range, specifically tailor-made for its customers. On a quarterly basis, net sales and operating income were posted at Rs51.17 crore in Q2FY22, a significant rise from Rs25.55 crore reported in Q2FY21. The operating profit of Q2FY21 of Rs1.99 crore improved to Rs5.91 crore in Q2FY22. The company reported net profit of Rs3.10 crore in Q2FY22 as against net loss of Rs0.36 crore reported in Q2FY21. Synthetic yarn products are the most preferred yarns in the textile industry due to their unique features like lower price and uniform availability throughout the year. The future for the synthetic textile industry looks promising, buoyed by both strong domestic consumption as well as export demand in segments of apparel, home furnishing, automotive and filtration, personal care and hygiene applications. Hence, we recommend BUY.
Max Healthcare Institute Ltd.
CMP - Rs 380.20
BSE CODE : 543220
Volume : 1,28,774
Face Value : Rs 10
Target : Rs 418
Stoploss : Rs 358 (CLS)
Max Healthcare Institute Ltd is one of India’s largest healthcare organisations. Almost 85 per cent of its bed capacity is in metro and Tier I cities. The company has witnessed a robust jump of 56.44 per cent in net sales and operating income from Rs650.94 crore in Q2FY21 to Rs1,018.33 crore in Q2FY22. The operating profit also soared from Rs127.34 crore in Q2FY21 to Rs270.36 crore in Q2FY22. The quarter saw a net profit of Rs144.65 crore as compared to Rs16.65 crore in Q1FY21, clocking massive gains. The impressive financial growth was led by strong volumes on the back of robust traction in non-pandemic business i.e. ex-international business. Bearing a range of short and long-term growth triggers namely recovery in international business, improve-ment in payor mix which is the percentage of hospital revenue coming from private insurance companies versus government insurance programs as well as its expansion plans, we recommend BUY.
(Closing price as of Nov 30, 2021)