Hot Chips - Stock Recommendations For Your Portfolio

MOIL | BSE Code: 533286 | Volume: 90000 | CMP: Rs 262

MOIL is into the exploration, development, production and sale of manganese ore in India. It operates 10 mines, six
in the Nagpur and Bhandara districts (Maharashtra) and four in Balaghat district (Madhya Pradesh). MOIL is not only the largest miner of manganese ore in the country (and the fifth-largest globally), accounting for 50 per cent of production volumes, but also one of the lowest cost producers of manganese worldwide, as per the company’s claim. It has 22 million tonnes of reserves, with an average mine life of the reserves at around 20 years. The company plans to augment its reserves by three-four million tonnes by FY14. Its reserves have an average manganese grade of 37 per cent, with some mines having manganese content of 40-42 per cent. China’s steel production is expected to grow at around seven-eight per cent over 2012-2014, which will result in a continuous demand for imported manganese ore. Investors can look at the scrip from a medium-term perspective.

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PRATIBHA INDUSTRIES | BSE Code: 532718 | Volume: 25000 | CMP: Rs 48

Pratibha Industries engages in infrastructure development, including water supply and urban infrastructure. The company’s robust order book of Rs 6159 crore as on 31st December, 2011 provides healthy revenue visibility for the next 30-36 months. The order inflow is likely to remain strong going forward on the back of the government’s thrust on
infra spending. It also has a diversified order book, with a national footprint. The orders flow in from a range of segments like buildings, water, tunnels and roads. The JV model mitigates the risk in executing large-sized projects. It also facilitates a pan-India presence and enhances the company's technical and financial qualification, thus de-risking its business model. During FY12, it has bagged projects in specialised verticals such as microtunneling and metros. Investors can look at the scrip from a medium-term perspective.