Stock Pick From Construction And Textile Sector
Sanket Dewarkar / 23 Jun 2016
DSIJ 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 construction and textile Sector
DSIJ 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 construction and textile Sector
RPP Infra Projects
RPP Infra Projects is one of the leading and growing infrastructure development companies in India with a diversified presence in highways, roads and bridges construction, other civil construction in water management sector, irrigation and also power projects. The company’s order book on April 2016 is worth around Rs 790 crore comprising of 42 per cent orders secured through infrastructure sector, 34 per cent from irrigation and water supply segment, 21 per cent from buildings and 3 per cent from other business areas. It’s main focuses are on small projects in the range of Rs 50-100 crore, which improve the operational efficiency and also enhances liquidity by raising bills faster. The company has consciously decided to avoid getting into BOT projects due to uncertainty in receivables. However, it will continue to bid for EPC projects in future. The company is expecting a revenue growth of 25-30 per cent along with EBIDTA margins of 15-16 per cent in FY17.
Trident
Trident delivers its range of products to more than 100 countries and supplies to 22 of the top-30 global retailers. Around 67 per cent of its textile revenue comes from exports – with the USA contributing around 30 per cent. The company’s net profit that has jumped by 93.3 per cent at Rs 228.4 crore for the year ended March 31, 2016 while revenue has posted negative growth marginally by 2 per cent at Rs 3,705.8 crore in FY16. Its operating profit (EBITDA) has grown by 8 per cent at Rs 750.9 crore along with operating profit margin expanding by 190 bps at 20.3 per cent. Finance cost declined by 34 per cent to RS 136.4 crore from RS 205.9 crore due to repayment of debt at Rs 462.2 crore in FY16. With major capex in the last financial years, strong financial performance in the coming years will enable Trident to generate significant free cash flows.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.