Recommendation from Agriculture and Defense 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.[EasyDNNnews:PaidContentStart]

SHAKTI PUMPS (INDIA) LTD.


CMP - ₹550.10
BSE CODE 531431
Volume 15,522
Face Value ₹10
Target ₹576 - 600
Stoploss ₹521 (CLS)

Shakti Pumps (India) Ltd is primarily engaged in the manufacturing of pumps and motors of various kinds. It also offers advanced water pumping solutions to a wide range of applications such as irrigation, horticulture, domestic water supply, and commercial and industrial applications. In Q4FY23, the net sales of the company dipped by 52.5 per cent from last year’s same quarter to ₹182.66 crore. The EBITDA level of the company stood at ₹11.47 crore, witnessing a degrowth of 69.94 per cent from the March 2022 quarter. Similarly, the net profit of the company also plunged by more than 89 per cent from the corresponding quarter last year to ₹2.25 crore. In terms of their international endeavours, they have initiated the Uganda project, marking a significant milestone for their company. With their established reputation as a preferred partner in major export markets like the US and the Middle East, the company aims to extend their presence across other continents as well. Hence, we recommend BUY.
 

Hindustan Aeronautics Ltd.


CMP - ₹3102.90
BSE CODE 541154
Volume 71,930
Face Value ₹10
Target ₹3210 - 3240
Stoploss ₹3010 (CLS)

Hindustan Aeronautics Ltd (HAL) is a state-owned aerospace and defence company that manufactures, repairs and maintains aircraft and helicopters. Taking into account the company's quarterly performance, on a consolidated basis, it reported a modest growth of 8.1 per cent from ₹11,558.23 crore registered in Q4FY22, recording total revenue of ₹12,494.67 crore in Q4FY23. When comparing the net profit for the fourth quarter of FY23 to the same quarter last year, it declined 8.82 per cent from ₹3,105.17 crore to ₹2,831.18 crore. With a 29-30 per cent return on equity and capital employed, the company displays strong profitability. Furthermore, the PE ratio is low in comparison to its competitors. The stock can be viewed as a dividend investment as it declares dividends oftenShares of the company have gained over 5 per cent in the past month and have delivered more than 68 per cent returns over the last year. Given the defence industry's optimistic outlook and the company's potential for growth, we recommend BUY.

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