Recommendation from Bank - Public and Cement Sector

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.

CENTRAL BANK OF INDIA
CMP - ₹48.11
BSE CODE 532885
Volume 15,27,888
Face Value ₹10
Target ₹53 - 55
Stoploss ₹44.50 (CLS)

Founded in 1911, the Central Bank of India holds the distinction of being the first Indian commercial bank entirely owned and managed by Indians. The divisions of the public sector bank encompass treasury operations, corporate/ wholesale banking, and retail banking. Within the treasury operations segment, activities involve transactions with government and other securities, money market operations, and forex operations. In Q2FY24, the bank experienced a strong year-on-year growth of 19.43 per cent in interest earned, reaching a total of ₹7,350.66 crore, compared to ₹6,154.95 crore in the same quarter of the previous year. The total income showed a stellar growth of 19.07 per cent, and the net profit skyrocketed more than 90 per cent to reach ₹605.43 crore. Growth is propelled by initiatives focused on improving asset quality and reducing NPAs. Also, stronger balance sheets and growing demand are fostering an expansion in bank loan growth. Shares have climbed around 80 per cent in the last six months, and given the 52-week high of ₹55.99, there is potential for further growth. Hence, we recommend BUY.

JK Lakshmi Cement Ltd
CMP - ₹884.50
BSE CODE 500380
Volume 13,126
Face Value ₹5
Target ₹942 - 970
Stoploss ₹822 (CLS)

A part of the esteemed JK Organization, JK Lakshmi Cement Limited has been a prominent figure in the cement industry. It holds a strong presence in the cement markets of Northern, Western, and Eastern India. Pioneering the use of coloured bags, it stands as the first cement manufacturer in India to do so, offering a diverse product portfolio to meet various construction needs. Assessing the financial performance of the company on a consolidated basis, it reflected a notable growth of 14.63 per cent from ₹1,373.55 crore in Q2FY23, reporting a total revenue of ₹1,574.53 crore in Q2FY24. The consolidated net profit witnessed a significant growth of over 50 per cent, reaching ₹92.67 crore, compared to ₹61.03 crore in the corresponding quarter of the last year. Shares have recently witnessed a rally, surging 12 per cent over the last month and reaching a new 52-week high. Given the optimism surrounding the construction sector, along with the company's robust financials and strong parental support, we recommend BUY.