is one of your picks. What kind of money can investors make in this one?
IRB Infra is the largest private toll highway road developers, having assets of more than Rs 51,000 crore. It owns two InVITs as well. It is part of the national corridor projects. The central government has been focusing on developing highways and working on the Bharatmala project.
Companies like IRB Infra will really benefit from these projects. Also FASTag becoming mandatory has helped the company as manpower requirement has been reduced and toll collection has increased. The future of IRB Infra is really great. It has not participated in the recent rally and so there is a opportunity at the current price level. The target set here is around Rs 140 and stop loss is at Rs 100.
Your next pick actually is a cement company. Midcap and smallcap cement companies are yet to catch up with their large cap peers. Why do you like Anjani Portland? What kind of returns can the investors make in that one?
Anjani Portland is based in south India. It has a major presence in most of the southern states except Andhra as well as in Maharashtra and Goa. The company is looking to expand in Andhra Pradesh. The total equity of the company is just Rs 25 crore and it has big reserves of Rs 276 crore. It is a debt-free company and in Q3, the sales were reported at Rs 104 crore. The operating profit increased by 114%, net profit increased by 250% and in nine months, net profit has increased by 90%. So, it is available at a low PE multiple of 8.5%.
The company has been paying an increased dividend. In FY18, they paid around 20%. In FY19, they paid 25% and for year FY20 they have paid 50% dividend. The stock was trading in a range of Rs 200-235 in the last four months. It is ready to give a breakout. I have set the target at Rs 275 and kept stop loss at Rs 210.
What about Surya Roshni? That is one stock which a couple of PMS guys have started nibbling into. Compared Bajaj Electricals, Havells in the same space, it has yet to perform. Can this stock make decent returns going forward?
I recommended this stock near Diwali. At that point of time it was trading around Rs 200 levels. The company has diversified business and is working in different verticals like steel pipes, steel bricks as well as consumer durables. The ERW Pipes segment is the largest exporter from India and the performance of the company has been great.
In Q3, the sales increased by 13%, operating profit increased by 21% and net profit increased by 77%. In the pipeline segment, the demand is super high. The other consumer durable companies are very highly valued. Surya Roshni is available at very attractive valuations and looking good for investment. I am setting the target for Surya Roshni around Rs 420 and one must keep stop loss at Rs 340.
