Recommendation from a Finance - NBFC and Engineering & Construction 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.[EasyDNNnews:PaidContentStart]

TATA INVESTMENT CORPORATION LTD.

CMP - ₹3311.15
BSE CODE 501301
Volume 33,671
Face Value ₹10
Target ₹3560 - 3600
Stoploss ₹3080 (CLS) 

Tata Investment Corporation Ltd, a non-banking financial company, predominantly specialises in investing in a diverse portfolio of assets, encompassing both publicly traded and privately held equity shares, debt securities, mutual funds and other financial instruments across a wide spectrum of industries. Considering the company’s financial performance, on a consolidated basis, it reported a notable growth of 48.8 per cent from ₹101.88 crore registered in Q1FY23, recording total revenue of ₹151.60 crore in Q1FY24. The net profit for the first quarter of FY24 grew significantly to ₹146.81 crore compared to ₹89.94 crore in the same quarter last year. The company is almost debt-free and has consistently maintained a robust dividend payout. Shares have soared more than 23 per cent in the last month, resulting in nearly a 60 per cent return over the past six months. Considering the 52-week high of ₹3,522 per share on the BSE, shares have the potential for further growth. Hence, we recommend BUY. 

IRCON International Ltd.

CMP - ₹159.95
BSE CODE 541956
Volume 31,19,376
Face Value ₹2
Target ₹173 - 178
Stoploss ₹142 (CLS) 

I RCON International embarked on its journey in 1976 with a primary focus on railway construction. However, it began diversifying its operations evolving into an integrated engineering and construction Public Sector Undertaking (PSU). It specialises in executing large and technologically complex infrastructure projects across a spectrum of sectors. Considering the company’s financial performance, on a consolidated basis, it reported a considerable growth of 35.73 per cent from ₹2,001.91 crore registered in Q1FY23, recording total revenue of ₹2,717.15 crore in Q1FY24. The net profit for Q1FY24 grew to ₹187.36 crore compared to ₹144.57 crore in the same quarter last year. The company attracted significant investor attention by securing a contract agreement with Sri Lanka Railways, Ministry of Transport, Sri Lanka, with a contract value of ₹122 crore. Shares of the company have recently seen a robust rally, climbing around 15 per cent in just 5 trading sessions, following the announcement that the Department of Public Enterprise has conferred Navratna status upon the company. Hence, we recommend BUY. 

(Closing price as of October 17, 2023)

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