Recommendation from Finance and Logistics Sector

Ratin Biswass / 12 Dec 2024/ Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Hot Chips, Hot Chips, Recommendations

Recommendation from Finance and Logistics 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.

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]

PAISALO DIGITAL LTD
CMP - ₹60.93
BSE CODE 532900
Volume 88,243
Face Value ₹1
Target ₹66 - ₹67
Stoploss ₹57 (CLS)

Paisalo Digital Ltd, a non-banking financial company (NBFC), is dedicated to empowering India’s unbanked and underserved population by offering accessible and inclusive financial solutions. In Q2FY25, the company demonstrated remarkable growth, with total revenue growing by 29 per cent to ₹187 crore, compared to ₹145 crore in Q2FY24. Net profit also rose by 5 per cent year-on-year, from ₹47.49 crore to ₹49.91 crore.

Further, the company successfully raised the first tranche of USD 50 million through the issuance of foreign currency convertible bonds (FCCBs). Management emphasised that this FCCB issuance is a significant milestone, strengthening the company’s borrowing profile and positioning it for accelerated growth. Shares of the company have attracted strong buying interest, soaring around 40 per cent in just one month. Looking at the robust growth trajectory and upside potential, we recommend BUY.

North Eastern Carrying Corporation Ltd
CMP - ₹36.61
BSE CODE 534615
Volume 68,728
Face Value ₹10
Target ₹40 - ₹41
Stoploss ₹34 (CLS)

North Eastern Carrying Corporation Ltd (NECC) stands as one of India’s leading logistics companies with a pan-India presence, offering a wide range of services, including freight management and customised logistics solutions, powered by an automated ERP-based system. The company’s renowned clientele includes industry leaders such as ITC Ltd, Hindalco Industries, Mankind Pharma, Cipla, Tata Steel, Tata Consumer Products, APL Apollo Tubes, and TVS.

Shares have seen heightened buying interest following the company’s recent business update. The announcement of a state-ofthe-art, 1,83,000 sq. ft. warehouse facility at Tauru near Gurugram is expected to significantly enhance profitability, as the company has already secured business for the upcoming facility. Despite a broader market selloff, NECC shares have demonstrated resilience, delivering nearly 20 per cent returns over the past three months. Given its promising prospects in the upcoming days, we recommend BUY.

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