Recommendations From Infrastructure and Chemical Sector

Dalal Street Investment Journal India's No 1 investment magazine selects two aggressive stock picks in every issue, with a 15 day horizon based upon the bullish trend during that period. For this issue, we are recommending companies from the Infrastructure and Chemical Sector  in Hot Chips Column

CMP: Rs 143.85 BSE Code: 532966 Volume: 6,68,889 Face Value: Rs 2

Titagarh Wagons is one of the leading private sector wagon manufacturers in India. The company has over a period of time diversified itself from an only wagon manufacturer into an EMU/MEMU, metro rail coaches, defence projects, heavy equipment products manufacturing too. TWL is the only Indian company having acquired key technologies to manufacture modern metro trains and high speed trains through its acquisition of Firema Transporti. Recently, the company’s Italian subsidiary Titagarh Firema Adler SpA (TFA) obtained a new order worth Euro 65 million (Rs 475 crore) for double deck trains. The order book of the company at a consolidated level including TFA and Titagarh Wagons AFR, its French wagon making subsidiary, now stands at Rs. 2,800 crore. Titagarh is also planning to invest in its Uttarpara (West Bengal) unit to start manufacturing metro coaches in India under the Make in India initiative. Titagarh Wagons will remain in focus in the coming weeks ahead of the rail budget that's presented in the current month.

CMP: Rs 117.50 BSE Code: 500199 Volume: 23,556 Face Value: Rs 10

I G Petrochemicals (IGPL) is a leading player in Phthalic Anhydride (PAN) which is used in industries such as flexible PVC, plastics, paints, construction, transportation and marine. Two months ago, the company entered into a joint venture agreement through its subsidiary with Dubai Natural Gas Co., UAE ("DUGAS") for the manufacturing of Maleic Anhydride with a capacity of 45,000 MTPA. In H1FY16, the company’s net profit jumped by around thee fold at Rs 42.35 crore as against Rs 14.86 crore in the same period of the previous year. Its operating income grew by 71 per cent to Rs 73.3 crore with margin expanded by 700 bps at 14 per cent. Meanwhile, topline declined by 18 per cent to Rs 531.9 crore due to drop in the average realisation. On valuation front, the stock is 9.9 times of price to earning of Rs 11.82 on TTM basis.