Recommendation From Finance General & Casting and Forging 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

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

CMP - Rs.400.85  
BSE CODE 540133
Volume 65,799
Face Value Rs.10
Target Rs.425
Stoploss Rs.378 (CLS)



ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. Their insurance products include, term plan, child plan, wealth plan and health plan. On the consolidated financial front, the net sales for Q1FY20 was at Rs.6208.13 crore, up by 14.17 per cent when compared with Rs.5437.82 crore posted in Q1FY19. The company posted an operating loss of Rs.2052.29 crore in Q1FY20, thereby narrowing the loss from Rs.2259.7 crore posted in the same quarter of the previous year. The PAT was at Rs.284.64 crore, up marginally by 1.20 per cent in Q1FY20 versus Rs.281.27 crore posted in Q1FY19. The ROE was 17 per cent. The PE of the stock is 49.94 based on TTM earnings against the industry PE of 45.08x.We recommend a BUY.


AIA ENGINEERING
CMP - Rs.1707.25 
BSE CODE 532683
Volume 23141
Face Value Rs.2
Target Rs.1865 
Stoploss Rs.1640 (CLS)



AIA Engineering Limited is engaged in manufacturing and marketing high chromium consumable wear parts (mill internals) which are generally used as wear parts for the process of grinding in cement, mining, utility, thermal power, etc. It also manufactures and supplies grinding media, shell liners and diaphragms for tube mill applications. AIA Engineering operates in nearly 120 countries. On the consolidated financial front, for Q4FY19, the company posted growth in revenue from operations by 19.24 per cent to Rs.887.22 crore as against Rs.743.85 crore for Q4FY18. The profit before tax fell by 4.51 per cent to Rs.190.25 crore in Q4FY19 from Rs.199.25 crore in Q4FY18. The company’s net profit increased by 2.72 per cent YoY and was Rs.155.89 crore in Q4FY19 compared to the net profit of Rs.151.75 crore posted in Q4FY18. On the annual front, the revenue rose significantly by 24.44 per cent to Rs.3069.49 core for FY19 from Rs.2466.68 crore for FY18. In FY19, PBT stood at Rs.694.40 crore, posting an increase of 18.7 compared to Rs.585 crore in FY18. For FY19, the net profit went up by 15.29 per cent to Rs.511.43 crore from Rs.443.62 crore for FY18. The company also plans to expand its capacity from 340 KT to 490 KT till FY21. We recommend a BUY.

(Closing price as of July 31, 2019)


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