Recommendation from Electrodes & Welding Equipment AND Iron & Steel
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.
DE NORA INDIA LTD
CMP - ₹827.05
BSE CODE 590031
Volume 1,436
Face Value ₹10
Target ₹936 - 970
Stoploss ₹770 (CLS)
De Nora India is a subsidiary of the multinational company De Nora Group, Italy. The company is engaged in the manufacturing, refurbishing and selling of cathode and anode, electrochlorinators and cathodic protection systems. The company is engaged in the manufacturing and refurbishing of chloralkali cells, electrochlorination system, MMO coated titanium anodes for ICCP, platinized anodes for surface finishing and solar Mac™ systems – clean water from clean energy. Recently, the company released Q2FY23 results wherein the total income of the company witnessed a growth of 16.4 per cent to ₹14.97 crore against the previous quarter same year. The net profit had a marginal jump of 0.55 per cent to ₹1.57 crore from the June quarter 2022. The stock has also shown some positive traction as it has given more than 70 per cent returns in just one year and more than 20 per cent returnsin the past five trading sessions. Hence, we recommend BUY
GODAWARI POWER & ISPAT LTD
CMP - ₹401.55
BSE CODE 532734
Volume 23,286
Face Value ₹5
Target ₹434 - 450
Stoploss ₹377 (CLS)
Godawari Power and Ispat Ltd. is primarily involved in the mining of iron ore and the production of iron ore pellets, sponge iron, steel billets, wire rods, HB wire and ferro alloys, as well as the generation of electricity. Taking into account the company's financial performance, on a consolidated basis it reported a growth of 2.57 per cent from ₹1,274.35 crore registered in Q2FY22, recording total revenue of ₹1,307.14 crore in Q2FY23. Comparing the net profit for the second quarter of FY23 to the same quarter last year, it declined 35.8 per cent from ₹267.30 crore to ₹171.60 crore. Higher input cost was the primary cause of the unsatisfactory quarter performance recorded by the metal industry. When compared to the last year's performance, the company's net profit skyrocketed by a whopping 124 per cent. With exceptionally high RoE and RoCE figures that reflect the company's strong profitability position, the stock has the lowest PE ratio among its competitors. Hence, we recommend BUY.