Recommendation from Coal & Agrochemicals 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.
CMP - Rs199.45
BSE CODE 533278
Face Value Rs10
Coal India Limited (CIL) is engaged in production and sale of coal. The company offers products which includes coking coal, semi coking coal, non-coking coal, washed and beneficiated coal, middlings, rejects, coal fines or coke fines, etc. On the consolidated financial front, the company reported net sales of Rs23223 crore for Q1FY20 up by 3.64 per cent as compared to the net sales of Rs22407.73 crore reported for Q1FY19. The PBT for Q1FY20 stood at Rs7011 crore, a significant increase by 15.14 per cent from Rs6088.97 crore for Q1FY19. The net profit rose by 22.27 per cent in Q1FY20 to Rs4629.87 crore from Rs3786.44 crore in Q1Y19. The company’s net sales increased by 12.62 per cent YoY in FY19 to Rs92896.08 crore. In FY19, the net profit was Rs17462.18 crore, an increase of 148.09 per cent from Rs7038.44 crore in FY18. The company has signed a deal to mine coking coal in Russia’s far East. The Indian government recently announced approval of 100% FDI under the automatic route in coal mining and associated infrastructure. We recommend a BUY.
CMP - Rs166.65
BSE CODE 500355
Face Value Rs1
Rallis India Ltd mainly deals in agri business and has emerged as one of the leaders in the Indian agrochemical industry. The company is also in the institutional business providing technical and bulk of various molecules to leading companies like Bayer, Syngenta, Excel, UPL, Gharda, Cheminova, etc., and has launched products for control of pest of public health importance. The company is also in the business activities of agri inputs. On the consolidated financial front, the company has reported a rise of 23.79 per cent in its net profit to Rs67.76 crore for the quarter ended June, 2019 as compared to Rs54.74 crore for the same quarter in the previous year. The total income of the company increased by 9.20 per cent to Rs631.22 crore for Q1FY20 as compared with Rs578.02 crore for the corresponding quarter previous year. Net Sales has jumped 8.75 per cent YoY to Rs623.24 crore. The DMA for Rallis India as on Sep 9, 2019 is 158.99. Looking at the above-mentioned factors we recommend a BUY