Stock Pick From Transmission And Electrical Sector.

DSIJ 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 Transmission And Electrical Sector.


KEC International

KEC International operates in the businesses of power transmission and distribution and power cables. It operates in five verticals viz. power transmission and distribution; cables; railways; water. On the financial front, KEC International’s revenue declined by 7 per cent to Rs 1785 crore in Q1FY17 as compared to the previous fiscal year. The company’s EBITDA increased by 8.4 per cent to Rs 150 crore in Q1FY17 on a yearly basis. Its EBITDA margin expanded by 110 basis points to 8.4 per cent in Q1FY17 as compared to the same period in the previous fiscal year.  KEC International’s PAT margin expanded by 86 basis points to 1.74 per cent in Q1FY17 on a yearly basis. The company’s order book stood at Rs 2825 crore comprising 52 per cent T&D, 24 per cent from SAE, 7 per cent from cables, 15 per cent from Railways and 2 per cent from solar during Q1FY17.

Crompton Greaves Consumer Electricals

Crompton Greaves Consumer Electricals (GCEL) manufactures and markets a wide spectrum of consumer products, ranging from fans, lamps and luminaries to pumps and household appliances such as water heaters, mixer grinders, toasters, irons and electric lanterns. The company’s total Income increased by 15.4 per cent to Rs 1121 crore in Q1FY17 over the corresponding period of the last year. It has posted an operating profit of Rs 172.5 crore in Q1FY17, registering a growth of 24.4 per cent on a yearly basis. GCEL’s operating profit margin expanded by 110 basis points to 15.4 per cent in Q1FY17 as compared to same period in the previous financial year.