Recommendations From Domestic Appliances And Software Sector

Dalal Street Investment Journal India's no 1 Financial Magazine selects two aggressive stock picks in every issue, with a 15 day horizon based upon the bullish trend during that period. For this issue, we are recommending companies from the Domestic Appliances and Software sectors. 

Bajaj Electricals

Bajaj Electricals has posted phenomenal set of numbers in Q3FY16 by posting net profit of Rs 29.3 crore as compared to net loss of Rs 52.2 crore in Q3FY15. Its revenue grew by 10.8 per cent at Rs 1,151.5 crore in Q3FY16 as against Rs 1,039.2 crore in Q3FY15. The company has showed a strong turnaround in the lighting and engineering & project (E&P) segments with revenue growth at 26 and 10 per cent YoY, respectively. The company expects both these sectors will continue to do well due to enough orders in hand. In EPC segment, it has order of about Rs 2,900 crore still in hand and therefore Q4FY16 should be strong. Now the company does n’t have any other legacy project and legacy problem, so it is going to keep improving quarter-on-quarter. In FY17, the company also expects double digit growth in consumer durables segment along with good margin.

Hexaware Technologies

Hexaware Technologies, a leading IT-services company has reported 13.9 per cent jump in its net profit at Rs 99.4 crore for the quarter ended December 2015 as against net profit of Rs 87.3 crore in the year-ago period. Consolidated revenues rose 15.1 per cent to Rs 819.5 crore in the Q4CY15 as against Rs 711.8 crore in the same quarter of CY14. Despite being a challenging quarter, the company has witnessed a steady addition of nine clients across all its key focus areas. Going forward, we believe this client acquisition strategy would help Hexaware in gaining new orders. It has healthy cash flow from operations of Rs 346 crore in CY15 and zero debt on its books. Besides, it has maintained a decent dividend payout over the years. Strong deal pipeline, scalability of new deal wins coupled with client mining efforts are likely to boost its revenue traction going forward.