Kerbside

The recommendations provided in this column are taken from various market sources such as brokers, analysts, dealers and investment strategists, etc. These recommendations may not be backed by strong fundamentals. Therefore we advise readers to use their own discretion before investing in these recommendation

A CONSTRUCTIVE CHOICE

Ultratech Cement
BSE Code: 532538
CMP: Rs.4277.25

After three rounds of stimulus which did not impress the market participants, recently the finance minister announced a cut in corporate tax rates from 35% to 25.17%. This measure is expected to result in EPS upgrade for the cement sector. As per our sources, UltraTech Cement would benefit the most and the taxes saved would be utilised for capacity expansion and to reduce debts. Further, the recent announcement from the FM is likely to propel the capex outlook. As per murmurs on the D-Street, there is expectation that government-related spending will be a bigger driver for volume growth. Hence, the above mentioned factor makes this stock a perfect choice for the short-medium term.

WORTH BANKING ON

Kotak Mahindra Bank
BSE Code: 500247
CMP: Rs.1601.25

The company reported a strong growth of 18 per cent in the loan book in Q1FY20 and going forward, it is confident of maintaining the loan growth guidance of 20 per cent for FY20. The company has increased sponsorship from institutional investors at 5.7 per cent YoY increase in the number of funds invested in the stock during the last quarter. Also, the banks will be among the biggest beneficiaries of the move by the government. Market gossip has it that this scrip is headed northwards on strong buying by bull operators. Those with high risk appetite can take their bets on this scrip to make some quick gains.

TASTY TREAT

Britannia Industries
BSE Code: 500825
CMP: Rs.3036.10

The company is one of the leading Indian biscuit, bakery and dairy products’ manufacturer. It holds famous biscuit brands under its product portfolio such as Good Day, Tiger, Bourbon, etc. The stock had been underperforming and it was under pressure ever since Managing Director Varun Berry said that if the consumer is thinking twice even for an Rs.5 product then there is some serious issue in the economy. But, after the recent announcement of corporate tax cut the stock has witnessed a strong up-move along with strong volumes. According to market sources, they believe that the current rally in the stock has more legs to unfold as strong players have started accumulating this stock.

GET A SUGAR RUSH
Balrampur Chinni
BSE Code: 500038
CMP: Rs.171.60

An analyst from one of the leading broking firms in the country is recommending clients to buy this stock for short to medium term. Also, if we look at the shareholding pattern for the quarter ended June 2019, foreign portfolio investors have increased their stakes. This stock is likely to sweeten the portfolio of investors. However, we advise traders to initiate a long position with a proper stop-loss.

(Closing price as of Sept 25, 2019)