Recommendation From Pharmaceuticals & Steel 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.
KOPRAN LIMITED
CMP - Rs 128.75
BSE CODE : 524280
Volume : 2,12,478
Face Value : Rs 10
Target : Rs 145
Stoploss : Rs 116 (CLS)
Kopran Ltd. is an integrated pharmaceutical company which is committed to the manufacture and supply of international quality formulations and active pharmaceutical ingredients worldwide. On a consolidated quarterly basis, the net sales rose by 11.84 per cent from Rs 100.19 crore in Q3FY20 to Rs 112.06 crore in Q3FY21. The operating profit jumped from Rs 13.56 crore in Q3FY20 to Rs 25.37 crore in Q3FY21, registering gain of 87.06 per cent. The company reported net profit of Rs 15.71 crore in Q3FY21 as compared to net profit of Rs 6.31 crore in Q3FY20, increasing significantly. Going the way forward, Kopran plans to file DMFs for all new molecules in regulated markets, as a result gaining a significant share in the market. It has also planned to undertake up-gradation and expansion of three blocks at its Mahad facility in Q4 to fulfil the increasing demand of existing products and also manufacture new molecules that are being developed. Hence, we recommend BUY.
VARDHMAN SPECIAL STEELS LIMITED
CMP - Rs 161.35
BSE CODE : 534392
Volume : 38,839
Face Value : Rs 10
Target : Rs 180
Stoploss : Rs 145 (CLS)
Being placed among the leading producers of special and alloy steels, Vardhman Special Steels Limited serves the diverse requirements of hot rolled bars for engineering, automotive, tractor, bearing and allied industries. The company incorporates some of the most advanced manufacturing facilities with equally reliable support facilities. On a standalone quarterly basis, the net sales rose by 53.05 per cent from Rs 187.94 crore in Q3FY20 to Rs 287.65 crore in Q3FY21. The operating profit spiked up from Rs 7.85 crore in Q3FY20 to Rs 42.64 crore in Q3FY21, registering a massive gain. The company reported net profit of Rs 21.67 crore in Q3FY21 as compared to net profit of Rs 1.81 crore in Q3FY20, increasing significantly. In the steel sector huge scope for growth is offered by India’s comparatively low per capita steel consumption and the predicted boost in consumption due to increased infrastructure construction and the thriving automobile and railways sectors. Hence, we recommend BUY.
(Closing price as of April 19, 2021)