Recommendations From Sugar And Finance-Investments Sector

BALRAMPUR CHINI MILLS | CMP: Rs. 132

BSE Code: 500038 | Volume: 771701 | Face Value: Rs.1

Balrampur Chini Mills has 11 sugar factories in Uttar Pradesh, and has an aggregate crushing capacity of 79,000 tonnes per day. On the financial front, Balrampur Chini’s revenue increased 77.12 per cent to Rs.889 crore in Q2FY17 as compared to the same period in the previous financial year. Balrampur Chini has approved buy back of shares worth up to Rs.175 crore at a price not exceeding Rs.175 per share. The maximum buyback price is more than 30 per cent higher than current market price. The company has fixed January 13 as record date for determining the entitlement and the names of the shareholders, who are eligible to participate in the buyback offer. Axis Capital is manager to the buyback offer. The buyback is subject to receipt of necessary regulatory clearances. Meanwhile, participation in the buyback is voluntary. We are expecting short term gain on the buyback plan of the company.

8K MILES SOFTWARE SERVICES | CMP: Rs. 706

BSE Code: 512161 | Volume: 17619 | Face Value: Rs.5

8 K Miles Software Services is an Internet company. The company is focused on building solutions around cloud computing. Its board of directors has approved the proposal to acquire Cornerstone, a leading healthcare information technology services company at Rs.70 crore. The company is expecting transaction to be closed by the end of FY17. On the financial front, 8K Miles Software Services’ revenue increased 17.63 per cent to Rs.122 crore in Q2FY17 as compared to the previous quarter. The company’s operating profit too rose 15.35 per cent to Rs.42.39 crore in Q2FY17 on a quarterly basis. Its net profit also increased 22.25 per cent to Rs.23.63 crore in Q2FY17 as compared to the previous quarter. 8K Miles Software Services will declare Q3FY17 results on January 9 and we are expecting strong results for the quarter. On strong financials, we recommend investors to buy the stock.