Recommendation From Real Estate & Cigarettes 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

SUNTECK REALTY

CMP - Rs 488
BSE CODE 512179
Volume 81,151
Face Value Rs.1
Target Rs 540 
Stoploss Rs.458 (CLS)

Sunteck Realty is engaged in the realty and construction business. The company operations are focused on city-centric developments spread across Mumbai Metropolitan Region (MMR). The company’s residential projects include Signature Island, Signia Pearl, Signia Isles and Signia High. The company’s ongoing projects are Oshiwara District Centre (ODC) at Goregaon West, Mumbai, and Sunteck West World at Naigaon in Palghar district. The company has completed structural work at Phase-1 at ODC. The project completion visibility has helped the company to sell in excess of 75 units. The company should launch the next phase and commercial project by Diwali 2019. The construction work at Naigaon site is on course after a record pre-sales of 2,000 units in 2HFY19. Thus, we recommend a BUY.

GODFREY PHILLIPS

CMP - Rs 1159
BSE CODE 500163
Volume 28657
Face Value Rs.2
Target Rs 1290 
Stoploss Rs.1055 (CLS)

Godfrey Phillips is engaged in the manufacture of cigarettes and chewing gum products. The company’s segments are the cigarette and tobacco products, tea and other retail products. The company's subsidiaries are also engaged in investment and real estate business activities. It offers some of the famous brands like Hawk-Eye, Marlboro, Four Square, etc. In Q3FY19, the company’s net sales stood at `659.63 crore in December 2018, up 13.35 per cent from `581.94 crore. The net profit for the company stood at `78.46 crore in December 2018, up 26.57 per cent from `61.99 crore previous year. The company plans to capitalize on the fast-growing retail space via 24x7 convenience stores, build on existing cigarettes export markets to enhance its own-brand sales and continue to expand chewing and confectionary product offerings to suit customer tastes and preferences. Thus, we recommend a BUY.