Stock Recommendations For Your Portfolio

After establishing its footprint strongly in its three core generic business segments, Sun Pharmaceutical Industries is now all set to take the next big leap. It is looking forward to establishing its name as a global specialty pharma company. In what can be considered as the initial step in that direction, it has recently acquired US-based DUSA Pharmaceuticals, which is into the niche branded dermatology business. In the past, it has created value through acquisitions and we believe that this would continue going forward too. We feel that Sun Pharma’s track record in executing its projects and plans is an added advantage. The company’s fourth quarter results were splendid, with the bottomline witnessing a growth of 23 per cent on a YoY basis to stand at Rs 1010 crore as against an expectation of Rs 900 crore. The EBITDA too grew by 32 per cent YoY for Q4FY13 to come in at Rs 1280 crore. One can look at this stock from a medium-term perspective.

[PAGE BREAK]

City Union Bank (CUB), one of the oldest south-based private sector banks, has posted better-than-expected numbers in the recently concluded fourth quarter of FY13. Its net profit for Q4FY13 has increased by 15 per cent on a yearly basis to Rs 82.47 crore. This increase was aided by a healthy spurt in its net interest income (NII), which went up by 27 per cent on a yearly basis to Rs 173.31 crore. The Other Income of the bank too saw a decent growth of 32 per cent in the same period to Rs 80.55 crore. Apart from this, there has been an improvement in the asset quality of the bank on a sequential basis, with its Gross NPAs coming down by 10 bps sequentially to 1.13 per cent and the net NPAs remaining flat at 0.63 per cent. We expect better movement in the counter going forward. Investors can look at this stock from a medium-term perspective.