Recommendation From Pharma & Diversified Sector
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.
FDC LIMITED
CMP - Rs. 247.75
BSE CODE - 531599
Volume - 7,264
Face Value - Rs. 1
Target - Rs.270
Stoploss - Rs. 228(CLS)
FDC Limited is a pharmaceutical company engaged in the manufacture of specialized formulations and oral rehydration salts (ORS). It has multi-location manufacturing facilities for APIs, as well as finished dosage forms. Its facilities are located at Roha, Waluj and Sinnar in Maharashtra, Verna in Goa and Baddi in Himachal Pradesh. On a quarterly consolidated front, the company reported net sales of Rs. 321.22 crore in Q3FY20, up by 25.39 per cent from Rs. 256.17 crore in Q2FY20. Its operating profit in Q3FY20 jumped by 68.92 per cent to Rs.105.76 crore from Rs. 62.61 crore in Q3FY19. Similarly, the company reported a net profit of Rs. 74.14 crore in Q3FY19, up by 61.98 per cent from Rs. 45.77 crore in the same quarter for the previous fiscal year. Owing to the company's positive financial performance, we recommend a BUY on FDC Limited.
RITES LIMITED
CMP - Rs. 318.05
BSE CODE- 541556
Volume - 29,357
Face Value - Rs. 10
Target - Rs. 345
Stoploss - Rs. 295 (CLS)
RITES Limited is a wholly-owned government company and was awarded the Mini Ratna status in 2002. It is an engineering consultancy company, specialising in the field of transport infrastructure. On a consolidated quarterly front, the company’s net sales posted growth of 15.87 per cent to Rs. 619.82 crore in Q3FY20 from Rs. 534.92 crore in Q3FY19. PBDT stood at Rs. 208.92 crore in Q3FY20, up by 3.30 per cent from Rs. 202.25 crore in Q3FY19. The net profit grew by 8.29 per cent to Rs. 147.03 crore in Q3FY20 from Rs. 135.78 crore in the same quarter for the previous fiscal year. The export business of Rites continues to witness healthy growth. With a strong order pipeline from railways and expected increase in other infrastructure projects from roads, highways and construction projects, the company is expected to witness a growth momentum. Thus, we recommend a BUY.