Recommendation From Telecom Services & Agricultural Products Sector

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.

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BHARTI INFRATEL
  
CMP - Rs379
BSE CODE 534816
Volume 38874
Face Value Rs10 

Bharti Infratel is a vendor to the largest three telecom operators Bharti Airtel, Vodafone and Idea, which together contribute 81.7% of the revenue market share. It holds a portfolio of nearly 90,955 telecom towers as of Q2FY18, of which 39,264 are owned and 51,691 are from Indus Towers in which the company holds 42% stake. Considering the financials, the company has posted justifiable growth of 9.5% and 22% in revenue and PAT, respectively, in FY17. The company's lower debt and negative interest lends it financial stability. Going forward, the 'Smart City' initiative by the government would enable demand for telecom infrastructure; which has already started in Bhopal and Vadodara. Moreover, the green initiatives are expected to lower costs in the long run. We recommend a Buy in the scrip. 

ADVANCED ENZYME TECHNOLOGIES 

CMP - Rs302.50 
BSE CODE 540025 
Volume 108770 
Face Value Rs2 

Aglobal manufacturer of enzymes and probiotics, the company is engaged in research, development, manufacturing and marketing of proprietary products developed from enzymes, animal field supplements and micro-organisms. Its exports contributed 34% to the total revenue in FY17. It follows a strategy of acquisitions to increase capabilities and penetrate further into Europe, followed by Latin America and Asia. It is also attempting a diversification in palm oil extraction, detergents and bio-diesel enzyme segments. With this aim, the company acquired controlling stake in Malaysian Palm Techno Ventures, distributor of enzyme-based solutions for palm oil extraction. Financially, the company overcame the drop in its revenue and PAT in the June quarter by clocking growth of 30.6% and 38.4%, respectively, in the September quarter. The company's annual financial performance has shown consistent growth since FY15. The company expects the revenue to hit the Rs1000-crore mark in the coming 5 fiscals through organic and inorganic growth. We recommend a BUY in the scrip.