SMC's quarterly basket: Buy Greaves Cotton, ITD Cementation India and Allcargo Logistics

SMC | April 20, 2015, midnight


GREAVES COTTON LIMITED


We recommend a buy in the stock of GREAVES COTTON for a short-term perspective. The stock is trading at its good support level with good fundamental records and is expected to move up from this level. It made a 52 week low Rs. 114.20 and 52 week high of Rs 162.40. Buy around at 138 with a closing below stop loss of Rs.128 levels for the target of Rs.154.


The Company sustains its leadership position through seven state-of-the-art manufacturing units which produce world class products backed by comprehensive marketing and service / parts network throughout the country . Ongoing R&D efforts of innovation through frugal engineering and technology will continue to nurture the fundamental business model and enable continued leadership in the segments of operation. As per management of the company , in FY'17, decent pickup in demand for the engines would give good strength to the return on equity (RoE) and earnings per share (EPS).


ITD CEMENTATION INDIA LIMITED


We recommend a buy in the stock of ITD CEMENT A TION for a short-term perspective. The stock is trading at its good support level with good fundamental records and is expected to move up from this level. It made a 52 week low Rs. 61.00 and 52 week high of Rs 140.10. Buy around at 136 with a closing below stop loss of Rs.125 levels for the target of Rs.157.


The Company has maintained its focus on project selection for bidding after due evaluation of risks, profitability and project cash flow and has been able to build a strong and diverse order book. The Company is also in the L1 status on a couple of large contracts, which are likely to be converted into firm contracts. The management of the company is confident of improving its performance in the coming years through lots of government initiatives , focus on execution of orders and positive cash flow.


ALLCARGO LOGISTICS LIMITED


We recommend a buy in the stock of ALLCARGO LOGISTICS for a short-term perspective. The stock is trading at its good support level with good fundamental records and is expected to move up from this level. It made a 52 week low Rs. 61.00 and 52 week high of Rs 140.10. Buy around at 182-183 with a closing below stop loss of Rs.167 levels for the target of Rs.212.


The company is also one of the fastest growing service providers in the contract logistics space. With these capabilities, it is well placed to provide an unparalleled coastal shipping service which adds value to its customers' logistics requirements.

 

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