Stock Recommendations For Your Portfolio

PIDILITE INDUSTRIES | BSE CODE: 500331 | Volume: 90381 | CMP: Rs 286

Fevicol is a brand that almost all the households in India are aware of. Pidilite Industries, the makers of this brand, is a dominant player in India’s growing adhesive and industrial chemical market. The company has a share of around 70 per cent in its leading brand categories in the organised segment. The two segments, viz. consumer and bazaar (C&B) and speciality industrial chemicals have grown at a CAGR of 18 per cent and 12 per cent from FY07 till FY12. This growth was largely driven by Pidilite’s deep penetration into the domestic market and regular product innovations to leverage its flagship brand Fevicol for launching new products. The company’s wide penetration in rural India with a strong brand image provides Pidilite an edge over its competitors (mostly unorganised). A strong brand and sizeable advertising expenses have created an entry hurdle for other players as well as cheaper imported products. One can look at the stock from a medium-term perspective.

ZYDUS WELLNESS | BSE CODE: 531335 | Volume: 299828 | CMP: Rs 556

Zydus Wellness, a subsidiary of Cadila Healthcare, has posted better-than-expected financial numbers in Q4FY13. The consumer healthcare company has reported 26 per cent growth in its topline to stand at Rs 108 crore. Its net profit came in higher at Rs 38.17 crore, up by 60 per cent on a YoY basis for the quarter. The icing on the cake for investors is that the company has declared a dividend of Rs 6 per share, which gives a dividend yield of 1.08 per cent at its CMP of Rs 556. The company has set a revenue target of Rs 500 crore for FY14, which will mark a 22 per cent growth in the topline in the current fiscal 2013-14. Considering the growth numbers, it can be said that the performance of the company will be better going forward too. One can consider investing in this stock with a medium-term perspective.