Recommendation From Other Industrial Goods & Finance 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. 

AIA ENG 

CMP - Rs 1723.65
BSE CODE 532683
Volume 1,827
Face Value Rs 2
Target Rs 1860
Stoploss Rs 1605 (CLS) 

AIA Engineering is engaged in the business of designing, developing, manufacturing and installing and servicing of high chromium wear, corrosion and abrasion resistant parts. These products are mainly used by cements, mining and thermal power generation industries. The company produces a range of high chrome mill internals, which are used as wear parts in the process of crushing/grinding in the cement, mining, utility, thermal power and aggregate industries. On the quarterly financial front, the company has posted 27 per cent YoY growth in net sales to reach Rs 700.20 crore in Q3FY19. The PBIDT came in at Rs 165.23 crore in Q3FY19 as against Rs 126.86 crore, depicting a 30 per cent growth YoY. The PAT expanded marginally by 10 per cent YoY to Rs 129.22 crore in Q3FY19 as against Rs 116.52 crore in the corresponding quarter of the previous year. The shares of the company look attractive and with the company's strong financials we recommend a BUY. 

REC LTD 

CMP - Rs 134.35
BSE CODE 532955
Volume 389,718
Face Value Rs 10
Target Rs 150
Stoploss Rs 121.50 (CLS) 

REC Limited is engaged in financial services and activities such as credit granting. The company provides finance to the power sector. It finances and promotes rural electrification projects all over the country. It provides financial assistance to state electricity boards, state government departments and rural electric cooperatives for rural electrification projects sponsored by them. It provides loan assistance to state power utilities for investments in rural electrification schemes. On the consolidated financial front, the company witnessed a growth of 28.78 per cent to Rs 7,252.24 crore in Q3FY19 from Rs 5631.6 crore in the same period of the previous year. The PBIDT of the company increased by 23 per cent YoY and came in at Rs 5,908 in Q3FY19. The TTM EPS stood at Rs 27.05. The company was trading at a PE of 4.93x on its TTM earnings, as against the industry PE of 5.59x. Looking at the attractive valuations and considering that the stock may perform well on the bourses, we recommend a BUY 

(Closing price as of Feb 12, 2019)