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 

PORTFOLIO DIVERSIFICATION 

Manappuram Finance
BSE Code: 531213
CMP: Rs154.55 

Manappuram Finance is India’s leading gold loan NBFC with a consolidated asset under management (AUM) of Rs. 19,438 crores. The company has 4,351 branches across eight business verticals and boasts of a geographical presence across 28 states and 4 UTs. In an attempt to avoid concentration risk over its gold business, the company has diversified its business into various areas, such as microfinance, vehicle and housing finance, and SME lending. Its diversification efforts, which began in FY15, have started to pay off as its non-gold businesses held 25.5 per cent of the company’s consolidated AUM in FY19. Considering that Manappuram Finance did well on the growth and profitability aspects, and as it is well capitalize, the company’s performance will improve significantly going forward.Hence, it is a good stock, which can add glitter to your portfolio 

HIGH EXPECTATION 

BEL
BSE Code: 500049
CMP: Rs116.50 

BEL is one of the key players with strong research and manufacturing capabilities in the defense space in India. BEL recognizes outsourcing as one of the strategic tools to achieve cost benefits and also complement the strengths of private sector to build a strong industrial base. Market operators are bullish on this stock and expect it to spurt in the short term. Those willing to take some risk may buy the scrip for some decent gains. 

BREAKOUT 

OIL India
BSE Code: 533106
CMP: Rs172.60 

A renowned technical analyst is recommending his clients to add the stock of Oil India in their portfolio with a medium term perspective. In his report, he has stated that the company, which was trading sideways till last week, has generated a resolute breakout above the range with a robust volume, recently. Further, the stock is trading above its key moving average and also, the leading indicator RSI is featured in the bullish zone. Hence, it makes a perfect buy candidate for momentum traders. 

DEALER STRENGTH DOUBLED 

KEI Industries
BSE Code: 517569
CMP: Rs548.30 

KEI Industries is amongst India’s top three wire and cable manufacturers, with a comprehensive product portfolio, ranging from housing wires to extra high voltage (EHV) cables. The company sells its cables in 45 countries across the world and its export, which contributes 13 per cent to the overall revenue, clocked a CAGR of 16 per cent during the period of FY07-18. Over FY13-19, the company’s dealer strength has more than doubled, enabling it toraise the share of revenues from the retail segment, continuously. Also, fund houses are confident of this stock. As a result, the number of funds holding this stock has increased by 26 per cent YoY in Q1FY20 to 122. The recent announcement by the government of slashing corporate tax rate will benefit the company. 

KEI Industries is expected to post strong financial performance in the current quarter, which can take the stock price to another level. Investors with medium term view can buy this stock.