Recommendation from Hotel, Resort & Restaurants and Railways Wagons
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.
MAN INFRACONSTRUCTION LTD
CMP - ₹209.90
BSE CODE 533169
Volume 19,519
Face Value ₹2
Target ₹227 - ₹231
Stoploss ₹202 (CLS)
Headquartered in Mumbai, the company operates through two primary business verticals including construction and real estate development. It serves as an integrated EPC firm, boasting nearly six decades of expertise and proficiency in executing projects across a wide spectrum, including port, residential, commercial, industrial, and road construction segments throughout India. The company has recently acquired a prestigious project in South Mumbai. This venture is anticipated to yield a total sales value exceeding ₹2,100 crore. The company is positioned to attain an anticipated profit before tax exceeding ₹400 crore from this project. The shares are currently trading around 20 per cent lower than their 52-week high of ₹249 on the BSE, indicating potential for further growth. Given the real estate sector's upward growth trajectory, exemplified by record-breaking housing sales, substantial increases in rental incomes, and notable presales figures, the company is poised for expansion. Hence, we recommend BUY.
Titagarh Rail Systems Ltd
CMP - ₹978.50
BSE CODE 532966
Volume 2,07,536
Face Value ₹2
Target ₹1,057 - ₹1,076
Stoploss ₹939 (CLS)
The company excels in developing advanced transportation solutions, encompassing semi-high-speed trains, urban metros, passenger coaches, propulsion equipment, and a diverse range of wagons, including specialized variants. In the past month, the company was presented with an offer from the Railway Board to manufacture and deliver 4,463 BOSM wagons, totalling a contract worth ₹1,909 crore. When assessing the financial performance of the company on a consolidated basis, there was an impressive revenue growth of 24.57 per cent, gaining from ₹766.40 crore in Q3FY23 to report a total revenue of ₹954.68 crore in Q3FY24. The net profit also experienced an outstanding surge of 91.25 per cent, reaching ₹75.03 crore, as compared to ₹39.23 crore in the corresponding quarter of the previous year. Given the government's emphasis on infrastructure development, particularly in the railway sector, and the demonstrated investor confidence reflected in increased buying interest, we recommend BUY.