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 Banking and Oil & Gas sectors.

YES BANK | BSE Code: 532648 | Volume: 225630 CMP:360

YES Bank, with its focussed approach, has been able to penetrate the salary accounts space, resulting in an enhanced addition of 25000-30000 new accounts per month from just around 6000-7000 earlier. This has helped improve its average savings balances from around Rs 35000 to around Rs 85000 presently. The salary accounts segment constitutes around 60-65 per cent of the new accounts, which is indeed a positive sign. With a small base and an immense scope of penetration in the salary accounts space, better growth in savings deposits over FY13 cannot be ruled out for YES Bank. The branch count is expected to grow by 120 in FY13. The bank plans to further enhance its retail and SME asset portfolio by introducing different loan products. Though the build-up will be gradual, it aims to increase its branch banking portfolio from 18 per cent of the total loans in FY12 to 30 per cent in FY15. One can look at the scrip from a medium-term perspective.

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INDRAPRASTHA GAS BSE Code: 532514 Volume: 258269 CMP: Rs 249

Indraprastha Gas (IGL) has announced an 8.2 per cent hike in the price of CNG effective 7th July, which amounts to Rs 2.90/kg. The hike will be marginally higher at Rs 3.3/kg in Noida, Greater Noida and Ghaziabad. This is the twelfth price hike since March 2010, adding up to a cumulative 81 per cent since then. The price increase was warranted, since the cost of gas has gone up and also due to the fact that LNG has been becoming a preferred fuel. The depreciating rupee has also played a part in the higher costs. Over the last several years, IGL has been able to pass on the rising costs to its customers. Despite a sharp increase in volumes, it has consistently strived to maintain its EBITDA. Some improvement in the margins going forward cannot be ruled out. It is believed that the company will be able to show the same performance going forward too, rewarding investors with better returns.