Recommendation from Diamond & Jewellery and Engineering - Industrial Equipments

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.

MOTISONS JEWELLERS LTD
CMP - ₹188.25
BSE CODE 544053
Volume 2,49,786
Face Value ₹10
Target ₹203.30 - ₹207.10
Stoploss ₹175 (CLS)

Motisons Jewellers Ltd, established in 1997, is a prominent Indian jeweller offering an extensive collection of gold, diamond, kundan, pearl, silver and platinum jewellery, boasting over 3,00,000 designs spanning traditional, modern, and fusion styles. The company demonstrated strong financial performance with a 25 per cent compounded sales growth and a 15 per cent ROE over the past three years. Additionally, it has achieved a robust 56.2 per cent CAGR in profit growth over the last five years. The company approved a raising of ₹170 crore by issuing convertible warrants to three foreign investors (North Star Opportunities Fund, Eminence Global Fund and Nexpact Ltd) that will be used to fuel the company's growth plans. In Budget 2024, the finance minister announced cutting customs duty on gold to 6 per cent, silver to 6 per cent and platinum to 6.4 per cent, aiming to lower jewellery prices, boost sales and increasedomestic production. In light of the Budget 2024 update and fundraising from FIIs, we recommend BUY.

Salasar Techno Engineering Ltd
CMP - ₹19.19
BSE CODE 540642
Volume 69,098
Face Value ₹1
Target ₹20.8 - ₹21.10
Stoploss ₹18 (CLS)

S alasar Techno Engineering Ltd provides end-to-end steel infrastructure solutions, including design, manufacturing and installation for various sectors like telecom, power, solar and railways. The company reported robust financial performance for Q1FY25. Revenue surged 12.41 per cent to ₹294.90 crore, while net profit climbed 3.35 per cent to ₹10.49 crore compared to the same period last year. The company is well-positioned to benefit from the government's massive ₹ 4.76 trillion and ₹2.4 lakh crore investments in power transmission and renewable energy. In Q1FY25, FIIs bought over 3 per cent stake in the company and to further strengthen its market position, STEL has acquired EMC Limited, expanding its service offerings. This strategic move, combined with the company's strong financial performance and robust order pipeline, reinforces its leadership in the engineering and infrastructure sector. Considering the company's strong financial performance and robust order book, we recommend BUY.