Hot Chips - Stock Recommendations For Your Portfolio
2/21/2013 9:00 PM Thursday
PAGE INDUSTRIES | BSE CODE: 532827 | Volume: 511 | CMP: INR 3331
Page Industries is engaged in the manufacture and sale of innerwear under the brand of Jockey. The company’s license agreement with Jockey to manufacture and distribute the Jockey brand has been extended till 2030 in India. Jockey commands premium pricing among innerwear brands for men. The extension of license for around 20 years indicates a strong revenue visibility for the company going forward. Overall, the company has a market share of around 55 per cent in the innerwear market. What needs to highlighted is that in spite of volatility in commodity cost and a sharp increase in the excise duty, Page Industries has shown a commendable pricing power, resulting in stable operating margins. The company’s presence in the premium category gives it an edge over its peers. The company is likely to keep up its decent performance going forward. One can look at the stock from a medium-term perspective.
CERA SANITARYWARE | BSE CODE: 532443 | Volume: 13269 | CMP: INR 416
A healthy performance witnessed by Cera Sanitaryware in the recently concluded December quarter shows its strength and indicates a smooth road ahead on its path of success. The company witnessed better volumes growth that has led to a significant rise in the profitability and the topline of the company. Moreover, the company’s products have been well received by the market and its capacity expansion plan is quite on track. This will increase Cera’s production range of wall and vitrified tiles at its manufacturing facility in Kadi in Mehsana district of Gujarat. The company’s tile capacity has already expanded to 2.7 million pieces in the recently concluded quarter and is further expected to reach the 3 million pieces target going forward. The management expects the fourth quarter of the present fiscal to be better, backed by new launches which are expected to garner substantial revenues. One can look at the stock from a medium-term perspective.
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