DSIJ Mindshare

Hot Chips - Stock Recommendations For Your Portfolio

DSIJ selects 2 aggressive stocks picks in every issue, with a 7-15 day horizon based upon the bullish trend during that period. For this issue, we are recommending companies from the IT and FMCG sectors.

GLENMARK PHARMA | BSE Code: 532296 | Volume: 200000 | CMP: Rs 348

Glenmark Pharmaceuticals reported a 34 per cent growth in sales and a 33 per cent growth in PAT for Q4FY12 on a YoY basis. The company profited from core sales growth in the specialty business in India and semi-regulated markets.
Its generics business benefited from the full impact of the dermatology portfolio and 12 new products in the US, new molecules in APIs as well as license income from the EU. A better flow of approvals in oral contraceptives (OC) and a strong portfolio of controlled release drugs helped the company achieve strong growth in the US sales. The focussed approach in key therapeutic areas has helped it to garner better growth in this segment too. The management’s strategy to keep a major part of its exports unhedged has paid off with USD/INR appreciation. The management has given a guidance of 22-25 per cent sales growth in the company’s core business, which also provides a positive bias to the stock. Capex and R&D are expected to touch Rs 250 crore in FY13. Investors can look at the scrip from a medium-term perspective.

Last Seven Days’ Volume Table (No. Of Shares)
DaysVolume
08-May-12 43262
09-May-12 70134
10-May-12 720240
11-May-12 255388
14-May-12 85847
15-May-12 121854
16-May-12 200000


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JUBILANT FOODWORKS | BSE Code: 533155 | Volume: 150000 | CMP: Rs 1179

With a market share of around 70 per cent in the pizza delivery segment and around 50 per cent in the pizza segment, Jubilant Foodworks is certainly a stock to look forward to. Some may go negative on the stock due to the current scenario of high food inflation. However, with significant pricing power (12 per cent price hike) and effective cost management, the company is well poised to maintain its growth prospects going forward. It has a better reach as compared to its competitors, which also works as an added advantage. The management has planned a capex of Rs 150 crore in FY13, which will be focussed on opening more stores of Dominos and Dunkin Donuts. Going forward, similar tie-ups like Dominos and Dunkin Donuts cannot be ruled out. The company has a cash balance of Rs 90 crore in its books. Investors can look at the scrip from a medium-term perspective.

Last Seven Days’ Volume Table (No. Of Shares)
DaysVolume
24-Apr-12 367036
25-Apr-12 49136
26-Apr-12 45178
27-Apr-12 89423
28-Apr-12 7243
30-Apr-12 113965
02-May-12 405000

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