Recommendation from Textile - Machinery and Wood & Wood Products 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.

INTEGRA ENGINEERING INDIA LTD
CMP - ₹260.40
BSE CODE 505358
Volume 1,39,107
Face Value ₹1
Target ₹285 - ₹290
Stoploss ₹245 (CLS)

Integra Engineering India Ltd, offers a comprehensive suite of solutions for the railway industry. Their expertise encompasses the design and manufacture of sheet metal and wiring, electro-mechanical solutions, components for locomotive propulsion systems, interior parts for metro and semi-high-speed trains, and advanced railway control systems. The company's consolidated annual financial performance showcased a revenue growth of 10.26 per cent, surging from ₹133.16 crore in FY23 to ₹146.82 crore in FY24. The company has maintained a robust return on equity track record, with a 3-year average return of 25.9 per cent. The railway industry has experienced unprecedented growth, fuelled by robust government support and significant budgetary allocations. In the Interim Budget 2024, the finance minister announced an 11.1 per cent increase in capex for the fiscal year 2024-25, with ₹2,52,200 crore allocated to the railways. Given the optimism sur rounding the industry and the company's potential to capitalise on emerging opportunities, we recommend BUY.

Rushil Decor Ltd
CMP - ₹372.40
BSE CODE 533470
Volume 69,098
Face Value ₹10
Target ₹402 - ₹410
Stoploss ₹346 (CLS)

Rushil Decor has emerged as a leader in the Indian decorative high-pressure laminates market. With a presence spanning more than 51 countries worldwide, the company has evolved into one of India's foremost manufacturers of laminates and complementary products. When assessing the company's financial performance on a standalone basis, there was an impressive revenue growth of around 16 per cent, surging from ₹192.82 crore in Q1FY24 to ₹223.50 crore in Q1FY25. Over the last five years, the company has achieved a compound annual growth rate (CAGR) of 20 per cent in revenues, 27 per cent in EBITDA, and 25 per cent in profit after tax (PAT). The company has initiated a greenfield project in Mansa, Gujarat, adjacent to the existing facilities, with operations expected to commence in Q3FY2025. The new facility will feature a flexible product line focused on the production of jumbo-size laminates. Hence, considering the company's strong financial performance, global market presence, and promising future projects, we recommend BUY..