Recommendation from Software and Engineering - Industrial Equipments 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]

ACE SOFTWARE EXPORTS LTD
CMP - ₹457.10
BSE CODE 531525
Volume 43,940
Face Value ₹10
Target ₹555 - ₹640
Stoploss ₹388 (CLS)

ACE Software Exports Ltd is an established player in the software solutions sector. The product portfolio includes software consulting to develop custom solutions for CMS, CRM, ERP, etc. The new initiative includes special CoEs for next-gen technologies like AI/ML, Data Analytics, and Cloud services. The company is transitioning from a pure service company to a more balanced approach, intending to achieve a 60:40 service-toproduct ratio by 2025.The upcoming product launches, such as SmartPPS - a scheduler designed for large engineering companies using high-end ERPs, an AI-powered sales assistant, and 'RotaWiz,' an automated rostering tool for the healthcare sector in Australia, all bring unique value to their respective markets. With minimal debt and strong liquidity, ASEL's financial strength is underscored by the promoters' commitment to a 100 per cent subscription in the upcoming rights issue. Funds from the rights issue will support product launches and digital transformation initiatives. Hence, we recommend BUY.

Thermax Ltd
CMP - ₹5,331.70
BSE CODE 500411
Volume 9,484
Face Value ₹2
Target ₹5,840 - ₹6,000
Stoploss ₹5,040 (CLS)

Thermax Ltd stands as a prominent conglomerate in the energy and environment space, widely regarded as a trusted partner in driving the energy transition. With a comprehensive portfolio that includes clean air, clean energy, clean water, and chemical solutions, the company brings robust capabilities to clients focused on sustainability and efficiency. Operating 14 manufacturing facilities across India, Europe, and Southeast Asia, Thermax also oversees 43 subsidiaries in India and globally. For Q1FY25, the company reported a notable 13 per cent year-on-year revenue growth to ₹2,184 crore, while net profit soared by an impressive 82 per cent year-on-year to ₹110 crore. Recently, Thermax signed an agreement to acquire a 100 per cent stake in Buildtech Products India Pvt Ltd for around ₹72 crore, a move that strategically enhances its position in the construction chemicals market. After delivering over 80 per cent returns year-to-date, shares are experiencing renewed buying interest. Given this momentum and potential for further gains, we recommend BUY.

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