Stock Pick from Industrial Machinery & Other Apparels & Accessories Industry

GREAVES COTTON | BSE CODE: 501455 | VOLUME: 35,777 | CMP: Rs. 144 | Face Value Rs. 2

Greaves Cotton, one of India's leading engineering companies, reported a 50.8 per cent jump in its net profit in Q1FY16 that stood at Rs 43.34 crore against Rs 28.74 crore recorded in the same period last year. Total income declined by 10 per cent at Rs 380.66 crore as against Rs 423 crore in Q1FY15 due to complete exit of companyfrom infrastructure segment. EBITDA jumped by 32.9 per cent to Rs 62.24 crore as against Rs 46.82 crore in Q1FY15 due to improvement in EBITDA margins by 571 bps to 16.8 per cent mainly on account of better operating efficiencies. The company's continued focus on adding new OEMs to its fold has resulted in adding Eicher as new customer for a versatile transport vehicle, Multix, in June 2015 which is powered by Greaves engine. The Company is also planning to launch various light agri equipment during the year ahead to provide impetus to its farm equipment business.

LOVABLE LINGERIE | BSE CODE: 533343 | VOLUME: 49,795 | CMP: Rs. 293 | Face Value Rs. 10

Lovable Lingerie is engaged in the business of manufacturing women’s products which includes innerwear and casual wear. The company’s revenue for Q1FY16 grewby 10.5 per cent on yearly basis to Rs 65.5 crore and net profit rose by 18.4 per cent to Rs 12.2 crore in the same period. Margins in the first quarter were slightly lower because of increase in marketing expenses in recently concluded quarter. As per management margins will improve by 100-150 basis points by the year end. Currently, the company’s market share is 20 per cent in the premium segment. The company is aiming for a 15 per cent revenue growth in the current year. For current year, marketing expenses are between 9-10 per cent of revenues, adding that the company has adequate cash reserve and liquidity.