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Tata Steel Ltd. has a strong presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products. It has a target to increase domestic steelmaking capacity to 30 MTPA by 2025. In FY22, the company produced 839,000 tonnes of direct reduced iron (DRI), 684,000 tonnes of crude steel and 672,000 tonnes of rolled products. In Q2FY23, the company witnessed a small dip of 0.84 per cent from Q2FY22 in its consolidated revenue of ₹59,878 crore. The EBITDA levels fell by more than 62 per cent from last year’s same quarter to ₹6,271 crore. The company’s net profit dipped by 89 per cent from the corresponding quarter last year to ₹1,297 crore. In Q3FY23, Tata Steel India’s crude steel production stood at 5 million tonnes and was up 4 per cent on YoY and QoQ basis. Deliveries stood at 4.73 million tonnes and were up 7 per cent YoY primarily driven by 11 per cent growth in domestic deliveries, which also led to improvement in product mix. Automotive and special products’ segment deliveries stood at 2 million tonnes and were up 7 per cent on YoY basis, surpassing the previous best recorded in 9MFY19. In the last six months, the stock has shown positive traction as it has gained over 29 per cent. The company is expected to have positive operations in India in 2023. Hence, we recommend BUY. 





Hi-Tech Pipes Limited (HTPL) is a well-known brand in the Indian piping industry. The company’s products are used in a variety of industries, including infrastructure, telecommunications, defence, power distribution, railways, airports, real estate, automobiles and agriculture. Considering the yearly performance, on a consolidated basis the net profit of company soared 76.85 per cent to ₹40.33 crore as against ₹22.80 crore during the previous year. Also, net sales rose by 40.15 per cent to ₹1,878.85 crore as against ₹1,340.63 crore during the previous year ended March 2021. Considering the company’s quarterly performance, sales growth has slowed in comparison to previous quarters. It reported a growth of 29.89 per cent from ₹460.79 crore registered in Q2FY22, recording total revenue of ₹598.53 crore in Q2FY23. Unfortunately, when comparing the net profit for the second quarter of FY23 to the same quarter last year, it plunged by a massive 56.77 per cent from ₹10.05 crore to ₹4.34 crore. Shares of Hi-Tech Pipes are currently trading close to their 52-week high. The stock’s price-to-earning (PE) ratio is extremely high whereas its ROE and ROCE are both moderate. We advise you to look for companies in the same industry that are available at much lower valuations and have better growth and return ratios. As a result, in the case of Hi-Tech Pipes, we recommend AVOID.   

Bikaji Foods International Limited is one of the leading fast-moving consumer goods (FMCG) brands in India.Over the years, the company has utilised the power of ethnic snacking to win hearts all around the world. With a diverse range of products and creative packaging, the company has strengthened its commitment to bringing true Indian flavour to the rest of the world. The product line of the company is divided into six major categories: bhujia, namkeen, packaged sweets, papad, western snacks and other snacks, which primarily include gift packs and cookies. 

Considering the company’s quarterly performance, on a consolidated basis it reported a growth of 31.83 per cent from ₹437.68 crore registered in Q2FY22, recording total revenue of ₹576.97 crore in Q2FY23. It has reported strong EBITDA growth of 40.59 per cent. When comparing the net profit for the second quarter of FY23 to the same quarter last year, it soared by a significant 43.53 per cent from ₹28.51 crore to ₹40.93 crore. At the time of writing this report, the company has a market value of ₹10,200 crore.

Promoters hold a sizable 75.97 per cent stake in the company while non-institutional investors own the remaining 24.03 per cent. The company recently announced that Hanuman Agrofood Private Limited (HAPL) had been acquired as a subsidiary after the company purchased 99.65 per cent of HAPL’s equity. Investor response to the IPO issue had been excellent. The scrip debuted strongly with an attractive listing premium when it was listed on exchanges in November 2022. In less than two months, shares soared by nearly 30 per cent. The stock’s price-to-earning (PE) ratio is higher than that of its competitors in the industry. However, the company was favoured due to its strong global presence, established brand visibility, good profitability position and significant shareholding by the promoter group. Given the optimistic outlook for the FMCG sector and the company’s potential for further growth, we recommend BUY. 





RSWM Ltd. is a textile manufacturer and exporter of synthetic, blended, mélange, cotton, specialty valueadded yarns and also manufactures fabrics, denim and green polyester fibre. The company primarily produces different varieties of yarns for hosiery, carpet, denim, technical textiles, industrial applications, denim fabric and synthetic fabric for renowned brands. The company exports to more than 78+ nations globally like Africa, South East Asia, Europe, the Middle East and the USA with a geographical split of domestic (67 per cent) and export (33 per cent). 

In Q2 FY23, the company’s net sales rose marginally by 0.08 per cent from last year’s same quarter to `953.07 crore. The EBITDA level was down by 26.39 per cent from September 2021 quarter to ₹81.63 crore. RSWM’s net profit went down by 55.02 per cent from the corresponding quarter last year to ₹20.13 crore. For FY 23-24, the company has planned major capacity expansions which includes the addition of 30,000 spindles to its existing mélange yarn capacity and 51,000 spindles for compact cotton yarn. 

It also plans to add 7 lakh metres per month to the denim unit. Further, the company wants to enter the knitted fabrics market with a planned capacity of 400 MT per month. The company has invested around ₹410 crore in the expansion of denim, cotton melange yarn, knits business and modernisation and balancing equipment across all its units. This project commenced commercial production on July 1, 2022. Additional capex of ₹315 crore is to be invested in the expansion of spinning capacity in Banswara. The project is underway and expected to be operational in FY24. The stock has shown weak performance as it has fallen more than 42 per cent in the last one year, more than 10 per cent in one month and more than 20 per cent in the last six months. However, with such planned expansion in their capacities, it will be interesting to see how it will affect their revenues. Hence, we recommend HOLD.