Stock Recommendations For Your Portfolio

ALEMBIC PHARMACEUTICALS | BSE CODE: 533573 | VOLUME: 120067 | CMP: Rs.305

Alembic Pharmaceuticals offers opportunity to play the growing domestic branded formulations market combined with its US‐centric international generics business. Th e latter has posted around 39 per cent CAGR over FY12‐14 and it is expected that the robust US‐led momentum in international generics to continue while domestic branded formulations growth would be closer to 20 per cent over the next 2‐3 years. Strong revenue visibility stems from the ramp up in FY15 capex guidance, while margin expansion would be back-ended, supported by enhanced focus on specialty therapies within domestic market. Th e company is also attempting to reduce focus on low margin areas in domestic formulations and looks to consolidate its presence in specialty segment with the launch of a third cardio division, upgradation of legacy respiratory therapy and expansion of gastroenterology.

FINOLEX CABLES | BSE CODE: 500144 | VOLUME: 90600 | CMP: Rs.202

Finolex Cables (FCL) has a dominant position in the cable industry which can be attributed to its inherent advantages such as high brand recognition, strong goodwill, sound financial backing and experienced management team. As a part of its diversification strategy, FCL has ventured into switchgears, electric motors and transformers. Going forward, FCL will launch various types of circuit breakers and cabinets in the market by the end of this fiscal. Strong balance sheet, positive free cash flows owing to better working capital management, higher profitability, low capex and debt along with robust ROEs are likely to be value accretive for the company going forward. With the new government’s focus on reviving the activity, FCL’s revenue growth will be led by robust construction activity, significant infrastructure improvement in power and telecom industries and strong automobile production. Positive outlook for the automotive industry also bodes well for automotive wires and cables.