Recommendations from Auto Ancillaries & Miscellaneous Sectors

Ninad Ramdasi / 08 Feb 2024/ Categories: DSIJ_Magazine_Web, DSIJMagazine_App, Hot Chips, Hot Chips, Recommendations

This section gives you some of the momentum stocks which are in buzz for past few days and are expected to give quick returns in a 15-day horizon.

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]

Computer Age Management Services Ltd

CMP - ₹2,942.10
BSE CODE: 543232
Volume: 13,069
Face Value: ₹10
Target: ₹3,100 - ₹3,160
Stoploss: ₹2,820 (CLS)

Computer Age Management Services Ltd (CAMS) has been at the forefront of providing technology-driven financial infrastructure and services to mutual funds and other financial institutions. As the leading registrar and transfer agency in the Indian mutual fund sector, it manages around 70 per cent of the average assets under management as of June 2023. Assessing the financial performance of the company on a consolidated basis, it reflected a notable growth of 18.93 per cent from ₹243.57 crore in Q3FY23, reporting a total revenue of ₹289.68 crore in Q3FY24. The net profit witnessed a significant growth of over 20 per cent, reaching ₹88.54 crore, compared to ₹73.57 crore in the corresponding quarter of the last year. Following the approval of an interim dividend of ₹12 per share by the board, the stock has experienced a notable increase in buying activity. Given this development and the potential for upward movement, we recommend BUY.

JBM Auto Ltd

CMP - ₹2,027.10
BSE CODE: 532605
Volume: 10,265
Face Value: ₹2 T
arget: ₹2,189 - ₹2,240
Stoploss: ₹1,880 (CLS)

The company offers a wide spectrum of auto components, covering contract manufacturing, chassis and suspension systems, pedal boxes, tubular products, as well as safety critical components and assemblies. It delivers complete solutions across various business sectors, encompassing 2-wheelers, 3-wheelers, passenger vehicles, commercial vehicles, as well as farm and construction equipment. Additionally, its operations have expanded into electric vehicles (EVs), EV charging infrastructure, and renewable energy sectors.

When evaluating the financial performance of the company on a consolidated basis, there was a strong revenue growth of 41.25 per cent, increasing from ₹953.05 crore in Q3FY23 to report a total revenue of ₹1,346.17 crore in Q3FY24. The net profit also experienced a substantial gain of over 56 per cent, reaching ₹49.47 crore, as compared to ₹31.69 crore in the corresponding quarter of the previous year. With shares having soared by over 300 per cent in the past year, and given the potential for further growth, we recommend BUY.

(Closing price as of February 06, 2024)

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