Recommendation from Auto Ancillaries - Castings/Forgings and Iron & Steel Sector
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Hot Chips, Hot Chips, Recommendations
The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.
The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations .
PTC INDUSTRIES LTD
CMP - ₹13,748.00
BSE CODE 539006
Volume 751
Face Value ₹10
Target ₹14,848 - ₹15,123
Stoploss ₹12,876 (CLS)
The company has been manufacturing engineering components for critical and supercritical applications in industries such as defence, oil & gas, LNG and ships & marine for the last 50 years. It exports products to various countries worldwide, serving renowned customers like Rolls Royce, Siemens, among others. The company's consolidated annual financial performance demonstrated impressive growth, with revenue soaring by 17.16 per cent from ₹219.26 crore in FY23 to ₹256.88 crore in FY24. Net profit also witnessed a significant surge, growing by 63.53 per cent to ₹42.22 crore, up from ₹25.82 crore the previous year. The company has recently approved raising funds up to ₹700 crore through QIP. It has also announced a partnership with leading entities in the Indian defence and aerospace sector to advance the 'Make in India' initiative. Given the government's emphasis on domestic manufacturing and the optimistic outlook within the defence sector, we foresee significant upside potential. Consequently, we recommend BUY.
JTL Industries Ltd
CMP - ₹218.60
BSE CODE 534600
Volume 46,146
Face Value ₹2
Target ₹236 - ₹240
Stoploss ₹203 (CLS)
The company is one of the largest producers of Electric Resistance Welded (ERW) steel pipes and among the top section pipe and tube manufacturers in India, with a production capacity exceeding 6 lakh metric tonnes per annum. It offers over 1,000 SKUs in this segment and has a global footprint spanning five continents and more than 20 countries. When assessing the company's financial performance, on a consolidated basis, there was an impressive net profit growth of around 21 per cent, surging from ₹25.37 crore in Q1FY24 to ₹30.70 crore in Q1FY25. Revenue saw modest growth, reaching ₹515.38 crore compared to ₹504.80 crore in the corresponding quarter of the previous year. The company recently announced the opening of its fundraising initiative through the issuance of QIPs. Sales volume increased by 10.8 per cent year-on-year to 85,674 MT in Q1FY25. The first phase of Nabha Steels and Metals, commercialised in June, contributed 10,726 MT to the total sales. Considering the potential for consistent growth, we recommend BUY.