Shrew Renuka is the largest sugar refiner and Ethanol Producer in India. Company accounts for almost 20% of India’s international sugar trade. It also has 21% market share in India’s fuel ethanol market. Total Income of company for quarter July-September was Rs.2,050 crore. Government of India is also giving importance to this sector and may consider about debt restructuring of Sugar Sector. Any relief for sugar companies in future would help them to earn higher profit. Stock of Shree Renuka is available at very low price and looks attractive when we compare it with other sugar companies. Therefore, I would advice to hold Shree Renuka for long term target of Rs.20.50.
IFCI, also known as Industrial Finance Corporation of India, is a government owned Development Bank. Its main work is to cater to the long-term finance needs of the industrial sector. As IFCI is available at lower price, i think one can hold it for long term target of Rs.39. New method that has been used up by few companies for Reducing debt is to Convert most of the Debt into Equity. Government can also use this method, and if they execute something like this or any other debt restructuring plan in future for company, IFCI would gain more than 60 percent. Either, government can also use its Assets for reducing debt and making IFCI more profitable company.
Sunil Hitech Engineers
Sunil HiTech Engineers Limited (SHEL) is a Engineering, Procurement & Construction Company in India. On 1 December, company declare ex-date for bonus. Now the stock is around Rs.13. Total income of company have some potential for future. Fundamently, company is good to invest but according to technical charts, stock can slide to Rs.10. If you are/was planning to invest money in sunil hitech for long term, i think you can invest in it.
HCC or Hindustan Construction Corporation has business in Engineering & Construction, Real Estate, Infrastructure, Urban development & Management. Lavasa, a planned hill city set in the Sahayadri Mountains near Pune is among the most important projects of HCC which is under developing stage. Total income of company was around Rs.900 crore for quarter July-September. Order Book of Company is really active and includes major projects worth more than Rs.1500 crore. HCC has already shown climb in his price from levels of 21 after Government decision of giving 3/4 value of pending projects. Future of Infrastructure companies is going to be very interesting and positive. If someone have some position in stock, he or she can try to wait for more higher levels that may be 52. I think traders who had invested in HCC around Rs.27/24 or below, should keep lowering their position at every price break.
Diamond Power is a power sector company which works in manufacturing of power transmission equipments. Its portfolio mainly consist of equipment that includes Conductors, Power Cables-HV, LV & UHV and Transformers. While analysing balance sheet of company, i found that most of the income beside interest and tax was going into other expenses. EBITA of company is not really good. And structurally, stock does not look attractive. Therefore, I would advice to stay away from this stock.
Unitech Limited is one of the leading Real Estate company in India. So far Unitech has built more than 100 residential projects. Nirvana Country in Gurgaon is an integrated development complete with villas, apartments, offices, retail spaces, schools and clubs. Unitech has also developed world-class malls like Metro Walk in Rohini, The Great India Place in Noida, and Central in Gurgaon. Income from operations of company for quarter July-September was around Rs.373 crore. Overall portfolio of company is great but the problem of debt on its book will going to be very serious stress for company in future. In short time, Company have to take any major action against their debt. Price of stock is something around Rs.4. As Now, nothing is left to loose in this stock. Therefore, I think investors can hold it for target of Rs.6.70 in this year.
Himachal Futuristic Communication Limited (HFCL) basically works and provide solutions for Railways, Homeland Security, Smart Cities and Defence. Company has also some work in telecommunication sector. I feel Financial numbers and Balance sheet of HFCL are something not good. Technical chart of stock is really bad enough to make it worst. I would advice investors to stay away from this stock.
Have any question related to this post! Feel free to ask through comment box given below.