Stock Recommendations For Your Portfolio

GODAWARI POWER & ISPATS | BSE CODE : 532734 | Volume : 57512 | CMP : Rs.154

Godawari Power & Ispat (GPIL) is believed to be on an inflection point as far as its earnings are concerned. The margins going forward are all set to improve further on the back of higher pellet volumes and captive iron ore mining. The recent announcement regarding the start of mine development work at Boria Tibu mine which has a capacity of 0.7 mtpa provides strong visibility on captive iron ore. This is likely to act as a value accretive proposition for the company. Though the stock has seen a good run in its prices, it is believed that there is still some steam left in the company. Also, the results of the company for the March quarter 2014, has also been on the better side. The street is expecting the valuations to catch up in a rapid pace which will drive the prices higher in the near term.

IRB INFRASTRUCTURE DEVELOPERS | BSE CODE : 532947 | Volume : 893335 | CMP : Rs.197

IRB Infrastructure Developers (IRB) which is one of the best plays on the Indian infrastructure story comes with a stable balance sheet, high operating cash flow and a matured road portfolio which is unmatched in this space. With the improvement in the investment cycle and expectations of an improved economy is likely to be beneficial for the company going forward. With new projects and higher traffic growth the value of the BOT portfolio of the company can also improve further. IRB has also bagged three new projects in the last six months which is expected to offer higher IRRs as the competition in this period was virtually non-existent with various players opting out of bids. Moreover, after the earlier bad experiences, these projects were awarded by NHAI post acquiring all necessary approvals for early start of the project. So any hiccups in execution of these projects are not seen as a hindrance.