Stock Pick From Iron & Steel Products and Broadcasting & Cable TV Sector

BHARAT WIRE ROPES: BSE CODE:539799 | Volume : 74,885 | Face Value: Rs.10 | CMP - Rs.91.40

Bharat Wire Ropes is engaged in manufacturing of wires, wire ropes, slings and stranded wires, among others. The company manufactures wire ropes for various sectors, including general engineering, fishing, elevators, cranes, material handling, power transmission, suspension bridges, onshore/offshore oil exploration, ports and shipping, mining, defence and railways. Bharat Wire Ropes begins commercial production from manufacturing facility at Chalisgaon in Maharashtra. The company’s capacity utilisation at current plant is at 50 per cent to 55 per cent. It has plans to start exporting to China. On financial front, Bharat Wire Ropes’ operating profit margin expanded by 307 basis points to 10.8 per cent in Q3FY17 on a yearly basis. Its net profit also boosted almost double to Rs.42 lakh in Q3FY17 as compared to same period in previous fiscal year. We recommend BUY, with a price target of Rs.105 with a stop loss of Rs.88.

DISH TV INDIA: BSE CODE: 532839 | Volume : 1,75,11,571 | Face Value : Rs.1 | CMP - Rs.110

Dish TV has expanded its portfolio by adding 23 new channels including nine high-definition channels and 14 standard definition channels, taking the total count of channels and services to more than 615. The new rate rules proposed by the regulator Telecom Regulatory Authority of India (TRAI) is going to help the company. From April 1, the new rules will break up subscriber payments into capacity charge and pay-TV revenue. The mandated capacity charge is Rs.130 for the first 100 free-to-air channels, and an additional Rs.20 for every incremental 25 channels. The Information and Broadcasting Ministry has set cut-off date for Phase IV of digital addressable system (DAS) to March 31, 2017 to switch over to digital mode of transmission. Mandating of phase IV digitisation, price revision from April 1 will fuel the demand in future. The company also expanded its channel to grab more attention of subscribers. We recommend Buy, with a price target of Rs.125 with a stop loss of Rs.100.