Recommendations From Infrastructure And Engineering Sector
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Dalal Street Investment Journal India's No 1 financial 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 Air conditioner and Engineering sectors.
BEML
BSE Code: 500048
FV: 10
Volume: 81069
CMP: 949
BEML is in the manufacturing of rail coaches and spare parts and also mining equipments. Its business segments include mining & construction, rail & metro and defence production. The trading division deals in non-company products. The company secured order of Rs 900 crore for the supply of metro coaches to Kolkata East-West Metro line from the Ministry of Defence. BEML started manufacturing and supply of metro cars during 2002 and is reliable ‘Make in India’ partner in Metro Rolling Stock. The company supplied 700 metro cars to Delhi Metro Rail Corporation (DMRC). It also supplied coaches to Bangalore and Jaipur Metro Project. On financial front, BEML’s revenue increased by 32.35 per cent to Rs 764 crore in Q3FY16 as compared to same period in previous financial year. The company reported net profit of Rs 3.1 crore in Q3FY16 against net loss of Rs 11.42 crore in Q3FY15. New orders would be good trigger for the stock to move upwards in coming days.
Sadbhav Engineering
BSE Code: 532710
FV: 1
Volume: 13091
CMP: 209
Sadbhav Engineering, an infrastructure company has operating segments viz. construction & engineering, and BOT (toll & annuity). The company has constructed over 4200 kilometers of roads and highways (national and state highways). On financial front, Sadbhav Engineering’s revenue increased by 4.27 per cent to Rs 753 crore in Q3FY16 as compared to same period in previous financial year. The company’s EBITDA too rose by 0.62 per cent to Rs 73.86 crore in Q3FY16 on yearly basis. Its net profit declined by 27.51 per cent to Rs 27.35 crore in Q3FY16 as compared to same period in previous fiscal year. Sadbhav Engineering transferred 20 per cent equity stake held in Mumbai Nashik Expressway to BIF Holdings at aggregate amount of Rs 72 crore. The company invested about Rs 10.4 crore in FY06 and sold at almost seven times money invested. After divestment of stake the stock would have good traction in near term.