Stock Pick From Steel And Finance Sector

INDIA HOME LOAN
 
CMP:Rs.108  | ​BSE CODE:530979  | VOLUME:48161  |  FACE VALUE:Rs.10

India Home Loan offers retail home loan product for affordable housing segment. JM Financial has equity of 24.5 per cent in the company. On financial front, India Home Loan’s NII increased 11 per cent to Rs.78.5 lakh in Q3FY17 as compared to the same period of the previous fiscal year. The company’s other income grew by 177 per cent to Rs.6.3 lakh in Q3FY17 on yearly basis on the account of profit on redemption of mutual funds and interest received on deposits. India Home Loan’s revenue increased 34.89 per cent to Rs.3.95 crore in 9MFY17 as compared to same period in previous financial year. We believe that with experienced management on board, government’s huge thrust on affordable housing sector, the company will continue to command higher valuation in future. We continue to recommend BUY, with a price target of Rs.137 with a stop loss of Rs.100

JINDAL STEEL & POWER
 
CMP:Rs.126  | ​BSE CODE:532286  | VOLUME:4357732  |  FACE VALUE:Rs.1

Jindal Steel & Power’s business segments include iron & steel, power and others. It has an installed steel-making capacity of over 6.75 million tons per annum (MTPA); an installed power generation capacity of approximately 5060 megawatts, and pellet-making capacity of over nine MTPA. On financial front, Jindal Steel & Power’s top line increased 9 per cent to Rs.14760 crore in 9MFY17 as compared to same period in previous financial year. The company’s EBITDA too rose 22 per cent to Rs.3140 crore in 9MFY17 on yearly basis. Its EBITDA margin expanded by 200 basis points to 21 per cent in 9MFY17 on yearly basis. Jindal Steel & Power posted net loss of Rs.2441 crore in 9MFY17 against net loss of Rs.2449 crore in 9MFY16. We recommend to BUY the stock with a target price of 145 and with a stop loss of 115