Recommendation from Miscellaneous & Cement 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. 

Crisil Ltd.

CMP - Rs 3,223.80
BSE CODE : 500092
Volume : 16,816
Face Value : Rs 1
Target : Rs 3,600
Stoploss : Rs 2,930 (CLS)

CRISIL is one of the best known credit rating agencies in India, renowned for its agile and innovative practices. Recently CRISIL declared a positive set of numbers in Q2FY22 and the stock has outperformed the markets since declaring the above results. For the September quarter the income from operations for the quarter was up 17.7 per cent and for the nine months it was up by 15.2 per cent. The PAT for the quarter was up by 25.1 per cent and for the nine months it was up by 21.5 per cent. Profit after tax increased to Rs 112.9 crore as compared to Rs 90.2 crore in the corresponding quarter of the previous year. CRISIL declared Rs 9 per share dividend. The consolidated total income for the quarter ended September 30, 2021, was up by 15.7 per cent to Rs 603.8 crore as compared to Rs 522 crore in the corresponding quarter of the previous year. Profit after tax increased to Rs 112.9 crore compared with Rs 90.2 crore in the corresponding quarter of the previous year. The new offering of CRISIL on risk and sustainability has helped deepen its presence across client segments. Technically the stock is in an intermediate uptrend and is seen rising with volumes. Hence, we recommend BUY.

PRISM JOHNSON LTD.

CMP - Rs 132.75
BSE CODE : 500338
Volume : 18,407
Face Value : Rs 10
Target : Rs 147
Stoploss : Rs 120 (CLS)

Prism Johnson is India’s leading integrated building material company. Recently the company announced a positive set of results. The company has declared 8.4 per cent YoY revenue growth in Q2FY22 due to healthy growth in HRJ and Prism RMC Division. Cement revenue was marginally down due to the monsoon and annual shutdown. Prism Cement constituted 39.6 per cent of Q2FY22 revenues, HRJ constituted 39.4 per cent and Prism RMC constituted 21 per cent of the revenues. Operating free cash flow (pre-capex and investments) was Rs 648 million in Q2FY22 on account of profits generated with stable working capital. Prism Johnson has a strong balance-sheet with net debt to TTM EBITDA at 1.8x as of September 30, 2021. The stock is in an intermediate uptrend. Hence, we recommend BUY.

(Closing price as of Nov 15, 2021)