Hot Chips - Stock Recommendations For Your Portfolio
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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 printing and banking sectors.
REPRO INDIA | BSE Code: 532687 | Volume: 3672 | CMP: Rs 238
Repro India provides various services like pre-print, print, print-on-demand, logistics and web storefront solutions. The company is mainly focussed on the education publication business, as this is a growing segment among the emerging markets. Its focus on education is evident from the fact that over 86 per cent of its revenues come from this sector. The company has four facilities at Navi Mumbai, Chennai and Surat. Going ahead, Repro is planning to focus on digital delivery. This is on account of the growing demand for customised short runs of book orders and fulfillment solutions.
| Last Seven Days’ Volume Table (No. of Shares) |
|---|
| Days | Volume |
| 19-Jun-12 | 5834 |
| 20-Jun-12 | 16832 |
| 21-Jun-12 | 3085 |
| 22-Jun-12 | 3327 |
| 25-Jun-12 | 41961 |
| 26-Jun-12 | 97559 |
| 27-Jun-12 | 3672 |
The management has stated that the market is growing by 40 per cent and will be worth around USD 300 billion by 2016. The company’s June 2012 quarter results are expected to be good, and may be a trigger for the stock price. Investors can look to the scrip from a mediumterm perspective.
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ALLAHABAD BANK | BSE Code: 532480 | Volume: 132000 | CMP: Rs 148
Allahabad Bank, which had a loan book size of Rs 111145 crore in FY12, is well placed among its peers, with strong NIMs, healthy asset quality and superior return ratios. The bank has been able to sustain a high growth in advances, which has been above the industry growth rate over the past three-four years. The management expects the bank’s advances to grow at around 21 per cent for FY13. The retail and MSME customer segment of the bank has been the key driver of loan growth. Retail advances grew by 16 per cent in FY12, whereas MSME advances grew by 28.3 per cent.
| Last Seven Days’ Volume Table (No. of Shares) |
|---|
| Days | Volume |
|---|
| 19-Jun-12 | 164302 |
| 20-Jun-12 | 148338 |
| 21-Jun-12 | 232233 |
| 22-Jun-12 | 218953 |
| 25-Jun-12 | 347945 |
| 26-Jun-12 | 154209 |
| 27-Jun-12 | 132000 |
The management has hinted at increasing the share of the retail book from the present 13.6 per cent to 17 per cent by FY13 and 20 per cent by FY14. The bank has been able to maintain a comparatively stable asset quality. Investors can look to the scrip from a medium-term perspective.
Hot Chips of Last One Month
| Reco Price | Peak after Reco Price* | Likely Gain(%) |
|---|
| Issue No 13 , June 4 - 17, 2012 |
|
| |
| Zydus Wellness | 374.00 | 429.00 | 14.71 |
| JK Cement | 139.00 | 152.00 | 9.35 |
| Issue No 14 , June 18 - July 1, 2012 |
|
| |
| Balkrishna Industries | 260.00 | 260.5 | 0.19 |
| Glaxosmithkline Consumer | 2647.00 | 2668 | 0.79 |
*Highest price after our recommendations
(Closing price of June 27, 2012)
The scrips have been recommended with a short-term investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.