Stock Pick From Banking Industry And Miscellaneous Sector

BSE: 532174 | NSE: ICICIBANK | ISIN: INE090A01021 | SECTOR: Banks- Private Sector

ICICI Bank, India’s largest private sector bank which is also identified as systemically important bank along with state-owned SBI are subjected to higher levels of supervision to prevent disruption to financial services in event of any failure. ICICI Bank reported healthy set of numbers in Q1FY16 as its net interest income grew by 14 per cent YoY resulting in 12 per cent growth in the net profits. NIMs remained stable at 3.54 per cent. The non-interest income grew by 5 per cent YoY and was supported by Rs 347 crore of net forex gain on profit from overseas branches. Asset quality improved marginally on QoQ basis as GNPA and NNPA declined to 3.68 per cent and 1.58 per cent as against 3.78 per cent and 1.61 per cent in Q4FY15. Fresh restructuring during the quarter was higher at Rs 19.6 whereas PCR improved to 69.7 per cent. Th e Tier 1 CAR was healthy at 12.64 per cent.

BSE: 523618 | NSE: DREDGECORP | ISIN: INE506A01018 | SECTOR: MISCELLANEOUS

Dredging Corporation of India (DCI) has been a market leader in dredging, with an estimated market share of about 65-70 per cent of the maintenance dredging and 10-20 per cent capital dredging in the entire country. It carries out maintenance dredging for Haldia Port, Kamarajar (Ennore) Port and Cochin Port. It also does some capital dredging and maintenance dredging in Visakhapatnam Port. It is gearing up to work for Andaman & Nicobar, Daman & Diu, Karwar and Ratnagiri ports. Haldia port accounts for 55 per cent of its total revenues. Recently, the government’s off er to sell 5 per cent of its stake in DCI was subscribed fully subscribed that the floor price for the OFS was fixed at Rs 382 per share. New port development and Clean Ganga project will create additional demand for maintenance activities. On the back of enhanced capacity and higher realisation, we believe maintenance dredging will bolster future revenues.