Recommendation from Iron & Steel and Pharmaceuticals & Drugs Sector

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.

HI-TECH PIPES LTD
CMP - ₹129.15
BSE CODE 543411
Volume 54,176
Face Value ₹1
Target ₹141 - ₹144
Stoploss ₹120 (CLS)

Hi-Tech Pipes ranks among the top five pipe manufacturers in India. It specialises in producing steel tubes and pipes for a diverse range of industries, including infrastructure, telecommunications, defence, railroads, airports, real estate, and automobiles. The company boasts a robust direct marketing presence across over 20 states, supported by a network of more than 450 dealers and distributors throughout India. The company's yearly financial performance showcased impressive growth, with an 18.64 per cent growth in revenue, rising from ₹1,860.55 crore in FY23 to ₹2,207.42 crore in FY24. Net profit also saw a significant uptick, growing by 17.29 per cent to ₹33.90 crore, up from ₹28.90 crore the previous year. Rural growth is primarily driven by agriculture. Therefore, agricultural solutions, including pumps and pipes, are expected to be a key focus area in the upcoming government budget. Given the sector's potential and the promising growth prospects of the company, we recommend BUY.

Caplin Point Laboratories Ltd
CMP - ₹1,510.25
BSE CODE 524742
Volume 28,153
Face Value ₹2
Target ₹1,662 - ₹1,670
Stoploss ₹1,405 (CLS) 

The company is a leading player in India's pharmaceutical industry, specialising in R&D and the manufacture of finished formulations, APIs, and clinical research. With over 4,000 product registrations worldwide, Caplin Point Laboratories offers more than 650 pharmaceutical formulations spanning over 36 therapeutic segments. The company's annual financial performance demonstrated remarkable growth, with revenue surging by 18.25 per cent from ₹528.61 crore in FY23 to ₹625.09 crore in FY24.Additionally, net profit experienced a substantial rise, climbing 21.11 per cent to ₹283.71 crore, compared to ₹234.26 crore the previous year. With a debt-free status and a robust balance sheet, the company is well-positioned to maintain stable earnings growth across various business cycles. Recently, there has been significant buying interest in the stock. With shares having delivered over 90 per cent returns in the past year, there is a potential upside of 7 per cent to reach its 52-week high of ₹1,617 per share on the BSE. Therefore, we recommend BUY.