Hot Chips - Stock recommendations for your portfolio

COX & KINGS | BSE Code: 533144 | Volume: 182000 | CMP: Rs 180

The recent acquisition of Holidaybreak by Cox & Kings represents a transformational step providing both critical mass and scale in critical international regions. The complementary nature of the two businesses will diversify the company’s revenue streams, both on the product and geographical bases. Significant opportunities lie ahead, which may further drive revenues and margin growth of the consolidated business. Leisure travel, which accounts for around 89-90 per cent of the organic revenues, is showing robust growth mainly driven by the improved distribution network and the competitive package offering. The focus on increasing its reach via franchisees is expected to improve the distribution network to 300 outlets in Tier II and Tier III cities by the end of CY13. A consistent improvement in products and services has enabled the company to maintain its growth momentum at a CAGR of 40 per cent during FY08-11. One can look at the scrip from a medium-term perspective.

Last Seven Days' Volume Table (No. of Shares)
Days	Volume
13-Feb-12	186700
14-Feb-12	119784
15-Feb-12	286667
16-Feb-12	77176
17-Feb-12	363033
21-Feb-12	159444
22-Feb-12	182000

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DEN NETWORKS | BSE Code: 533137 | Volume: 92000 | CMP: Rs 96 

Den Networks reported a growth of five per cent in its consolidated revenues for Q3 FY12, driven by a robust 19 per cent YoY growth in its cable business. There has also been a blip, with a 10 per cent YoY fall in revenues from its distribution joint venture, Media Pro (erstwhile Star-Den). However, as the distribution joint venture is more of a pass through entity only, the profitability of the company wasn’t hit and may not impact its results going forward too. As mandatory digitisation is being put into place, the company has imported around four lakh set top boxes and has tied up supplies of another 2.5 million set top boxes. The stock looks like an attractive candidate for one’s portfolio from a medium-term perspective, as it may be value accretive going forward.

Last Seven Days' Volume Table (No. of Shares)
Days	Volume
13-Feb-12	46075
14-Feb-12	366622
15-Feb-12	154488
16-Feb-12	135952
17-Feb-12	50290
21-Feb-12	45715
22-Feb-12	92000

Disclaimer: The scrips in this column have been recommended with a short-term 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.