Hotchips - THOMAS COOK (INDIA) & JBF INDUSTRIES

THOMAS COOK (INDIA)     BSE Code: 500413    Volume: 751000       CMP: Rs 72.80

Thomas Cook (India) (TCI) is the largest integrated travel and travel-related financial services company in India. It has recently been witnessed that the traction in the counter has returned and the largest contributor to its revenues i.e. the foreign exchange business has been experiencing improved activity. That is because the travel-related business, including ticketing, outbound travel, and inbound travel is making a northward move. The company also plans to double its branch network to increase its presence in India. A good chunk of the company’s stake is being taken over by one of the largest fund houses in India and they are taking a keen interest in the daily activity of the stock. The forthcoming Commonwealth Games may also bring in some increased investor interest in the stock which looks like an ideal candidate for one’s portfolio for medium to short-term gains.

JBF INDUSTRIES             BSE Code: 514034     Volume:  475000    CMP: Rs 154.40

JBF Industries has successfully evolved itself from a pure textile company to a fully grown petrochemical one. Its revenue has grown at a compounded annual growth rate (CAGR) of 62 per cent in the last five years. In order to maintain this growth rate it has expanded its capacities, product profile, and geographical presence both organically as well as inorganically in a timely manner. The company is also expanding its reach in the petrochemical chips market, which is growing at a rapid pace of 25 per cent per annum in India. It is further increasing its capacity in the value-added product space of BOPET and partially oriented yarn (POY) which will result in higher sales volume and margins. Both FIIs and DIIs have increased their stake marginally in the company. The stock can be looked at for gain in the short to medium-term perspective.