Stock Recommendations For Your Portfolio

ASTRAL POLY TECHNIK | BSE CODE: 532830 | Volume: 14167 | CMP: 563  

Astral Poly Technik, which is a licensee of Lubrizol Inc., has an enviable track record as far as the financial numbers are concerned. The company has been a high-growth player witnessing over 40 per cent rise in revenues in the last five fiscals on a CAGR basis. This is a result of strong demand environment, expanding dealership network, and improving brand saliency. The company is set to benefit from the shift in demand towards PVC/CPVC pipes from GI pipes, coupled with its reputation for strong product quality. It is believed that the company is likely to maintain its momentum going forward too. The company’s capacities have multiplied by over five times over the past five years to 65000 MT. Also, the company is planning to further expand its capacities by 40000 MT over the next two years to 105000 MT. One can look at the stock from a medium-term perspective.

TREE HOUSE EDUCATION & ACCESSORIES | BSE CODE: 533540 | Volume: 80% | CMP: 275  

If there is any sector that is insulated from the slowdown in the economy, it is the education sector. Tree House Education and Accessories is one such story. If we look at the quarterly numbers for the company for Q4FY13, it reported a strong set of numbers. Its topline grew by 33 per cent to stand at Rs 29.4 crore and the EBITDA grew by 30 per cent to Rs 14.2 crore on a YoY basis. The net profit grew by a whopping 45 per cent to stand at Rs 7.3 crore. The company has a strong network of 379 pre-schools, out of which maximum are owned and not franchisees. With a higher average household disposable income, the demand for the segment is expected to maintain its momentum going forward too. It follows a dual business model which helps it to maximise its profits. Also, the brand acceptability for the company has been on a rise, which will act as a value accretive proposition for the scrip. One can look at the stock from a medium-term perspective.