Recommendations from Pesticides & Agrochemicals and Construction 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.

FINE ORGANIC INDUSTRIES LTD

CMP - ₹5,095.80
BSE CODE 541557
Volume 4,801
Face Value ₹5
Target ₹5,500 - 5,600
Stoploss ₹4,820 (CLS)

Founded in 1970, the company has gradually expanded its offerings and now boasts a wide-ranging derivatives portfolio featuring over 450 products. All are derived from natural plant-₹ oils and oleochemicals, serving over 5,000 end-users spread across more than 70 countries worldwide. Considering the company's quarterly performance, on a consolidated basis it reported a decline of 26 per cent from ₹747.74 crore registered in Q1FY23, recording total revenue of ₹547.17 crore in Q1FY24. Compared to the same quarter last year, the net profit for the first quarter of FY24 fell 37 per cent, from ₹159.80 crore to ₹99.77 crore. Conversely, the stock is currently trading with a PE ratio of 27, which is lower than the industry average. Furthermore, it boasts a remarkable RoE of 49 per cent. The shares have experienced a decline of 10 per cent on a YTD basis, but there appears to be potential for growth, especially when considering their 52-week high of ₹7,316 per share on the BSE. Hence, we recommend BUY.
 

Sunteck Realty Ltd

CMP - ₹433.00
BSE CODE 512179
Volume 29,911
Face Value ₹1
Target ₹464 - 483
Stoploss ₹392 (CLS)

Sunteck Realty Ltd is a Mumbai based real estate developer focused on developing premium residential and commercial properties across the Mumbai Metropolitan Region (MMR). In the June 2023 period, the company reported net sales of ₹70.57 crore, marking a significant decline of 50.82 per cent from June 2022. Furthermore, the EBITDA for June 2023 amounted to ₹10.39 crore, showing a substantial decrease of 79.39 per cent from June 2022. For the same quarterly period, the company incurred a net loss of ₹6.74 crore in June 2023, representing a substantial decrease of 127 per cent when compared to June 2022. The company could potentially enhance its pre-sales growth by launching future projects in a timely manner. Since the onset of the pandemic, the company has incorporated six projects, covering an extensive area of approximately 25.5 million square feet. Additionally, the company is currently in negotiations for certain deals and anticipates finalising three of them in the near future. Hence, we recommend BUY.

(Closing price as of September 18, 2023)