Recommendation from Ceramics/Marble/Granite/Sanitaryware and Breweries & Distilleries

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..

CERA SANITARYWARE LTD
CMP - ₹8379.55
BSE CODE 532443
Volume 3,398
Face Value ₹5
Target ₹8450 - 8600
Stoploss ₹7780 (CLS)

The company manufactures and sells an extensive range of products that includes everything from sanitaryware, faucets, and tiles to wellness equipment like luxury showers and steam spaces. With its water-saving twin-flush linked WCs, 4-litre flush WCs, and one-piece WCs, the company has throughout the years set standards in the industry. Considering the company's quarterly performance, on a consolidated basis it reported a growth of 7.98 per cent from ₹397.20 crore registered in Q1FY23, recording total revenue of ₹428.91 crore in Q1FY24. It has reported operating profit growth of 37.73 per cent.Compared to the same quarter last year, the net profit for the first quarter of FY24 soared 42.52 per cent, from ₹39.49 crore to ₹56.28 crore. The board of directors recommended a dividend of ₹50 per equity share of ₹5 each for the financial year 2022-23. Shares of the company witnessed significant buying interest over the past year soaring more than 77 per cent, and are now trading at a 52-week high. Hence, given the upward potential, we recommend BUY. 

United Spirits Ltd
CMP - ₹1019.00
BSE CODE 532432
Volume 33,639
Face Value ₹2
Target ₹1064 - 1090
Stoploss ₹946 (CLS)

United Spirits is the country’s leading beverage alcohol company and a subsidiary of global leader Diageo PLC. The company in its press release declared that, in Q1FY24, the net sales of the company showcased a substantial growth of 28.6 per cent when compared to the previous year's adjusted figures, at ₹2,668 crore. The consolidated EBITDA stood at ₹714 crore, displaying a remarkable surge of 129.4 per cent when compared to the recalibrated figures from the previous year. The company exhibited a noteworthy upswing, with consolidated profit after tax achieving an exceptional growth of over 80 per cent, reaching ₹476.7 crore. Given the expanding population and the upward trajectory of consumption trends, United Spirits is positioned to maintain its leadership stance. From a fiscal standpoint, the company boasts a debt-free status, fortified by a robust cash reserve. This financial strength empowers the company to facilitate the pursuit of well-considered acquisitions to further its strategic objectives. Hence, we recommend BUY.