Recommendation from Compressors / Pumps and Power Generation/Distribution

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.

ROTO PUMPS LTD.
CMP - ₹581.75
BSE CODE 517500
Volume 14,390
Face Value ₹2
Target ₹638 - 650
Stoploss ₹553 (CLS)

Established in 1968, Roto Pumps is a pioneer progressive cavity pump manufacturer in India. It is renowned for offering dependable and efficient pumping solutions to a variety of industries, including wastewater, sugar, paper, paint, oil and gas, chemicals, food and beverage, renewable energy and power. Considering the company’s financial performance, on a consolidated basis it reported a significant growth of 21.58 per cent from ₹47.06 crore registered in Q3FY22, recording total revenue of ₹57.21 crore in Q3FY23. When comparing the net profit for the third quarter of FY23 to the same quarter last year, it climbed by 12.71 per cent from ₹8.19 crore to ₹9.23 crore. Despite having a higher PE ratio, it has very high ROE and ROCE in comparison to its competitors. Over the last five years, the company has achieved healthy profit growth at a CAGR of 41.4 per cent. Its shares have soared more than 60 per cent over the past year and new buying interest has been observed in them. Hence, we recommend BUY.

Tata Power Company Ltd.
CMP - ₹210.25
BSE CODE 500400
Volume 5,12,056
Face Value ₹1
Target ₹224 - 232
Stoploss ₹198 (CLS)

Tata Power Company is primarily involved in the business of generation, transmission and distribution of electricity. It aims to produce electricity completely through renewable sources. It also manufactures solar roofs and plans to build 1 lakh EV charging stations by 2025. For the quarter ended December 31, 2022, the company’s consolidated revenue rose by 30 per cent to ₹14,339 crore and the EBITDA level surged by 53 per cent to ₹2,818 crore from last year’ same quarter. The net profitability of the firm shot up by more than 91 per cent from the corresponding quarter last year to ₹1,052 crore. In the third quarter, the company saw significant strides in various businesses associated with its green energy platform and transmission and distribution business. It has also committed investments in renewables and in Odisha power distribution and has further strengthened its position in rooftop solar and EV charging domains. The order book of the company stood at ₹15,440 crore. Hence, we recommend BUY