Kerbside

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

STEELY MARCH TO PROFITS
Steelcast Limited
BSE Code: 513517
CMP: ₹528



Steelcast Limited (SCL) is engaged in the business of manufacturing steel and alloy steel castings, catering to a host of OEMs for diverse industrial sectors. In Q2FY23, 99 per cent of its revenue was clocked from OEM sales while 1 per cent was derived from the replacement market. The company’s geography-wise revenue distribution stands at 63 per cent from exports and 37 per cent from the domestic market. Contributing to increase operational efficiencies has been the company’s working capital cycle of 100 days, down from 143 days before and an inventory cycle of 41 days. In addition, it has a reduced short-term debt of ₹46.6 crore. Interestingly, 80 per cent of its power needs would be met by two plants – hybrid and solar – which are likely to be commissioned by March 2023. This share may be added for handsome gains.   

RIDING ON BIG ORDERS

PSP Projects Limited
BSE Code: 540544
CMP: `706.60

PSP Projects Limited is a multidisciplinary construction company offering a diversified range of construction and allied services across industrial, institutional, government, government residential and residential projects in India. In recent days the company has bagged back-toback orders worth ₹121.51 crore and 115.48 crore, respectively. With the receipt of these orders, the total order inflow for FY23 till date amounts to ₹1,948.58 crore. Moreover, one of the market birdies says that HNIs are bullish on this stock and have been seen placing buy orders in huge quantities. The testament of this is the fact that we have seen sharp up-move in the stock along with robust volume. One may buy this stock for good return in the short to medium term.  

PLOTTING AN UPWARD CURVE

Ahluwalia Contracts Limited 
BSE Code: 532811 
CMP: ₹455

Ahluwalia Contracts (AHLU), a beneficiary of infrastructure and industrial capex in India, provides turnkey solutions in the construction of vertical structures (buildings). With an experience of five decades and a witness to multiple capex cycles in India, it has consistently delivered positive operating cash flow. One of the leading brokerage houses of India expects the company to witness its highest ever order inflow and year-end order book in FY23E at ₹7,300 crore. Given the management’s clear focus on execution with working capital management, investors and traders can add now or repent later.   

IN A COMFORT ZONE

Vardhman Special Steels Limited.
BSE Code: 534392 
CMP: ₹276.30

The company is amongst India’s leading producers of special steels catering to diverse sectors of automotive, engineering, tractor, bearing and allied industries. It saw improved realisation per tonne YoY as it had gradually been passing on the raw material price hike to customers. The company stays put to meet its revised target of 195,000 tonnes for the year and in the best-case scenario it can exceed this figure and touch 200,000 tonnes. It can give good appreciation from the current level and hence this is an opportunity that invites serious attention.