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The recommendations provided in this column are taken from various market sources such as brokers, analysts, dealers and investment strategists, etc. These recommendations may not be backed by strong fundamentals. Therefore we advise readers to use their own discretion before investing in these recommendation

WEAVING BETTER FUTURE 

Arvind
BSE Code: 500101
CMP: Rs413.50 

A textile major Arvind Ltd is one of the largest manufactures of Denim and Woven with annual capacity of 100 and 132 mn meters. Company derived 61% revenue from textile and 31% from branded apparels in FY17. Recently, the company has decided to spin off its branded apparel and engineering business into a separate entity to concentrate only on core business of textiles. The company going forward is likely to invest nearly Rs1500 crore over 3-4 years to enhance its textile business. With this the stock of the company may see some upside ahead.

EMPHASIZING ON PENETRATION 

MphasiS
BSE Code: 526299
CMP: Rs737.55 

The infrastructure technology and applications outsourcing mid-cap company has more than 60% of its stake held by Marble II PTE. To penetrate into cloud and cognitive technologies, the firm is likely to acquire smaller firms operating in those businesses for which the company is ready to invest about 50 million dollars for each of these companies. The company is expecting higher operating profits in the coming financial years, because through automation, it is looking forward to higher revenues and lower its employee growth rate.

THE LENDER TO RAISE MONEY 

Axis Bank
BSE Code:532215
CMP: Rs545

One of the country’s biggest private sector banks, Axis Bank, holds nearly 8% weightage in the Bank Nifty index. The bank, with market cap of nearly Rs1.26 lakh crore, is planning to raise funds by issue of equity-linked securities. The move would be confirmed in its upcoming board meeting scheduled on November 10. Bain Capital is already in talks to invest USD 75-100 crore, i.e. between Rs4800-6400 crore. This may be one of the largest private equity investments so far in any banking transaction.

AND FINALLY..L&T 

BSE Code: 500510
CMP: Rs1218.25

An engineering giant that holds almost 3.8% weightage in the benchmark index Nifty is in talks to sell its non-core business of electric and automation division for a consideration of Rs15000-17000 core. Schneider Electric SE and its consortium partner Temasek is negotiating for the same. L&T’s electric and automation business accounts for 4% of the total order inflow worth Rs5818 crore while the order book of 1% worth Rs2741 crore as at March 2017. Moreover, the segment generated 4% of the total revenue in FY17 accounting to Rs4969 crore. With this the company is expected to focus on its core businesses majorly of infrastructure, power and engineering.