Recommendation from Computer & Infrastructure - General Sectors

The scrips in this column have been recommended with a 15-day 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.
NIIT LTD. 

CMP - Rs 278.60
BSE CODE : 500304
Volume : 2,94,113
Face Value : Rs 2
Target : Rs 305
Stoploss : Rs 255 (CLS)

NIIT Limited is a leading skills and talent development corporation that is building a manpower pool for global industry requirements. Having been set up in 1981 to help the nascent IT industry overcome its human resource challenges, today the company has a footprint in over 30 countries, furnishing a vast and comprehensive array of talent development programmes. Their two main lines of business are corporate learning skills and careers. The company posted strong results for Q4FY21. Net sales jumped by 30.47 per cent from Rs 211.1 crore in Q4FY20 to Rs 275.5 crore in Q4FY21. EBITDA for Q4FY21 grew by 21.30 per cent as compared to EBITDA posted in Q4FY20. PAT proliferated rapidly from Rs 0.5 crore in Q4FY20 to Rs 46.5 crore in Q4FY21. Improving deal velocity, growing contribution of new customers and opportunity acceleration in India are the key growth drivers for the company in the coming quarters. Hence, we recommend BUY.

VA TECH WABAG LTD.

CMP - Rs 360.75
BSE CODE : 533269
Volume : 65,793
Face Value : Rs 2
Target : Rs 400
Stoploss : Rs 325 (CLS)

With its presence in four continents, VA Tech Wabag Limited is a pure-play water technology multinational offering a wide range of solutions focused on conservation, optimisation, recycling and reuse of resources, directed at addressing water challenges across the world. In terms of consolidated quarterly results of the company, the net sales and operating income rose by 27.28 per cent from Rs 785.06 crore in Q4FY20 to Rs 999.25 crore in Q4FY21. The operating profit rose by 1.98 per cent from Rs 76.44 crore in Q4FY20 to Rs 77.95 crore in Q4FY21. The company reported net profit at Rs 42.29 crore in Q4FY21 as compared to net profit of Rs 31.09 crore reported in Q4FY20, bagging gains of 36.02 per cent. During the second wave of the pandemic, the company was able to maintain its execution momentum and the impact on revenue in coming quarters is likely to be restricted owing to the fact that engineering projects have not suffered much due to localised lockdowns. Hence, we recommend BUY.

(Closing price as of June 29, 2021)