Sock Pick From Breweries & Software Sector

Sanket Dewarkar / 08 Dec 2016

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations



Radico Khaitan has a strong sales and distribution network with presence in retail and off-trade outlets in relevant segments in different parts of India. The company has 33 bottling units spanning almost the entire country, of which five belong to the company and 28 are contract bottling units. It has collaborated with international players such as Ernest & Julio Gallo of California for distribution of their wines. Radico Khaitan currently sells through over 55,000 retail outlets and over 5,000 on premise outlets. It enjoys plant capacity utilization of more than 90 per cent. Radico Khaintan’s EBITDA margin increased 130 basis points to 13.2 per cent in H1FY17 as compared to the same period in the previous financial year. The company’s net profit margin also expanded by 68 basis points to 3.2 per cent in H1FY17 on a yearly basis. 





Nucleus Software Exports has launched the world's first offline digital cash solutions – PaySe – during the current year. The company has developed this system to connect rural areas for e-payments. It has been a technology service provider to banks since last 30 years. The demonetisation move by the government presents the company with an opportunity to expand, especially in rural areas and semi-urban areas. Five Star Business Finance has signed up with Nucleus Software Exports for cloud-based lending solutions. On the financial front, the company’s topline increased 12.87 per cent to Rs.95.6 crore in Q2FY17, as compared to the same period in previous financial year. Its net profit soared three-fold to Rs.13.7 crore in Q2FY17 on a yearly basis. Nucleus Software Exports cash and cash equivalent stood at Rs.412 crore in Q2FY16.

 
                           

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