Recommendation from Banks - Public Sector and Power - Transmission & Equipment
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.
INDIAN BANK
CMP - ₹215.65
BSE CODE 532814
Volume 2,00,780
Face Value ₹10
Target ₹221 - 232
Stoploss ₹188 (CLS)
Indian Bank is a medium-sized bank offering deposits, loans and services. The bank’s segments include treasury, corporate and wholesale banking, retail banking and other banking operations. In Q1FY23, the interest earned improved from ₹9,625.82 crore to ₹10,165.86 crore. Other income contracted from ₹1,926.78 crore in Q1FY22 to ₹1,731.67 crore in Q1FY23. On the contrary, net profit zoomed 54 per cent, reporting at ₹1,355.59 crore compared to ₹876.45 crore. The company’s gross NPAs have decreased to 8.13 per cent from 9.70 per cent in Q1FY23 whereas capital adequacy ratio, which ensures the lowering of risk of banks becoming insolvent, has improved to 16.8 per cent. Advances have grown 9.1 per cent on a YoY basis whereas deposits zoomed 8.2 per cent with an 8 per cent growth in current and savings account ratio (CASA). The bank has reported a healthy operational performance and also has witnessed improvement in asset quality. Hence, we recommend BUY
KALPATARU POWER TRANSMISSION LTD.
CMP - ₹433.20
BSE CODE 522287
Volume 7,275
Face Value ₹2
Target ₹465 - 480
Stoploss ₹404 (CLS)
Kalpataru Power Transmission Ltd. is a global EPC player with diversified interest in power transmission and distribution, oil and gas pipeline, railways and biomass-based power generation. The company reported good consolidated quarterly numbers for June 2022 with net sales at ₹3,677 crore, up by 14.76 per cent from ₹3,204 crore as of June 2021. The quarterly net profit marginally increased by 1.15 per cent to ₹88 crore from ₹87 crore in the same quarter of the last fiscal. The operating profit improved 2.81 per cent to ₹329 crore for the June 2022 quarter from ₹320 crore for the June 2021 quarter. The margins were impacted by higher commodity prices and freight costs. The company has seen strong order inflows led by order wins in international transmission and distribution space. The new order pipeline is expected to pick up in terms of execution activities in the coming quarters. Hence, we recommend BUY.