Recommendations from Glass and Breweries & Distilleries Sectors
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.
LA OPALA RG LTD.
CMP - ₹428.20
BSE CODE 526947
Volume 21,451
Face Value ₹2
Target ₹456- 474
Stoploss ₹392(CLS)
La Opala RG is a leading manufacturer and marketer of tableware (opal and glass) in India. The company has three main brands: La Opala (economy opal ware), Diva (premium opal ware) and Solitaire (premium crystal ware). On a standalone basis, the company has witnessed a robust jump of 46.2 per cent in net sales and operating income from ₹92.29 crore in Q2FY22 to ₹134.92 crore in Q2FY23. The operating profit also soared from ₹40.75 crore in Q2FY22 to ₹58.88 crore in Q2FY23. The quarter saw net profit of ₹39.06 crore as compared to ₹27.35 crore in Q2FY23, clocking gains of 42.3 per cent on a YoY basis. The company is planning to expand its capacity and is likely to gain incremental market share. Also, its expansion into borosilicate glass will aid further growth. Hence, we recommend BUY.
UNITED SPIRITS LTD.
CMP - ₹905.55
BSE CODE 532432
Volume 95,214
Face Value ₹2
Target ₹956-980
Stoploss ₹870 (CLS)
United Spirits Ltd. (USL) is the country’s leading beverage alcohol company which manufactures and sells and distributes a wide portfolio of premium brands. The company has posted a marginal surge of 0.9 per cent in net sales and operating income from ₹8,208.80 crore in Q2FY22 to ₹8,282.70 crore in Q2FY23. The operating profit contracted 5.92 per cent from ₹472.90 crore in Q2FY22 to ₹444.9 crore in Q2FY23. On the other hand, the quarter saw a robust jump in net profit which reached ₹548.2 crore in Q2FY23 as compared to ₹286.4 crore in Q2FY22, clocking 91.41 per cent gains. In Q2, the company’s ‘prestige and above’ segment accounted for 75 per cent of net sales and grew 23.1 per cent owing to innovation and renovation done in the prior quarters Based on the drivers triggering the company’s growth such as continued growth momentum and strong mix improvement, we recommend BUY.
(Closing price as of Nov., 15, 2022)