Recommendation from Finance - Investment and Textiles & Apparel Sectors

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.

JM FINANCIAL LTD
CMP - ₹118.55
BSE CODE 523405
Volume 31,54,343
Face Value ₹1
Target ₹128 - ₹130
Stoploss ₹110 (CLS)

J M Financial Ltd is an integrated and diversified financial services group with key business segments including Integrated Investment Banking, Mortgage Lending, Alternative and Distressed Credit, Asset Management, Wealth Management, and Securities business (Platform AWS). The company provides tailored solutions that address the evolving needs of institutional and individual investors. In some notable developments, the closing AUM of the mutual fund business tripled to ₹9,318 crore from ₹2,811 crore in June 2023. Additionally, the company launched its digital broking platform, ‘BlinkX,’ and is gearing up for the next phase of growth. When assessing the company's financial performance on a consolidated basis, there was a net profit growth of around 6 per cent, surging from ₹175.30 crore in Q1FY24 to ₹185.78 crore in Q1FY25. Shares of JM Financial Ltd recently experienced a strong technical breakout, reaching a new 52-week high of ₹119.70 per share on the BSE. Considering its further upside potential, we recommend BUY.

Kitex Garments Ltd
CMP - ₹401.40
BSE CODE 521248
Volume 591,531
Face Value ₹ 1
Target ₹434 - ₹442
Stoploss ₹373 (CLS)

Kitex Garments Ltd is one of the leading manufacturers and exporters of children's apparel in India, specialising in the production of infant wear. Based in Kerala, the company is a key player in the global textile and garment industry, with a strong presence in international markets, particularly in the United States and Europe. When assessing the company's financial performance on a consolidated basis, there was an impressive revenue growth of around 31 per cent, surging from ₹145.78 crore in Q1FY24 to ₹190.44 crore in Q1FY25. Additionally, net profit experienced an extraordinary rise, climbing 242 per cent to ₹26.68 crore, compared to ₹7.81 crore the previous year. The company announced that its Annual General Meeting (AGM) will be held on September 28, 2024, during which it will consider a dividend on equity shares.Over the past three months, the shares of Kitex Garments Ltd have more than doubled, significantly boosting investor wealth. Given the strong financial performance and further growth potential, we recommend BUY.