Recommendation from Iron & Steel and IT Services & Consulting 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.

VARDHMAN SPECIAL STEELS LTD

CMP - ₹321.45
BSE CODE 534392
Volume 27,518
Face Value ₹10
Target ₹350 - 365
Stoploss ₹312 (CLS)

Vardhman Special Steels is engaged in the manufacturing of billets, steel bars and rods and bright bars of various categories of special and alloy steels. The company manufactures steel billets, steel bars and steel bright bars which cater to sectors such as engineering, automotive, tractor, bearing and allied industries. For the quarter ended December 31, 2022, the company’s total income rose by 14.5 per cent from the previous year’s same quarter to ₹414.06 crore. The net profitability shot up by more than 46 per cent from the corresponding quarter last year to ₹28.46 crore. Leveraging on state-of-the-art manufacturing facilities and vast experience in the domain, the company has developed long-term relationships with reputed and renowned customers globally, which include corporations such as Toyota, Maruti Suzuki, Hyundai, Hero Moto Corp and Bajaj Auto, among others. Given the growth potential in the automotive sector, the company stands to benefit in the long run. Hence, we recommend BUY.

Coforge Ltd

CMP - ₹4,300.70
BSE CODE 532541
Volume 6,305
Face Value ₹10
Target ₹4,650 - 4,720
Stoploss ₹4,240 (CLS)

Coforge is a global digital services and solutions provider that leverages emerging technologies and deep domain expertise to deliver real-world business impact for its clients. The company leads with its product engineering approach and leverages cloud, data, integration and automation technologies to transform client businesses into intelligent, high-growth enterprises. For the quarter ended December 31, 2022, the company’s total income rose by 25.5 per cent from previous year’s same quarter to ₹2,087.6 crore. The net profitability of the firm shot up by more than 20 per cent from the corresponding quarter last year to ₹236.9 crore. The Board of Directors also declared an interim dividend of ₹19 per share. The company has signed the highest number of large deals in its history during Q3FY23 with 11 new clients added in this quarter. The firm has upgraded its FY 2023 annual revenue growth guidance to 22 per cent in constant currency terms and reaffirmed its adjusted EBITDA annual margin guidance. Hence, we recommend BUY