Identify the right pick
State Bank of India, the largest lender in India, churned out highly positive working results for the quarter ended September, 2015.
State Bank of India MP: 243; FV: Re 1
State Bank of India, the largest lender in India, churned out highly positive working results for the quarter ended September, 2015. The bank came out with a 25 per cent higher net profit for the quarter. It reported a rise of over 10 per cent each in deposit collections and loan disbursements. It also revealed that the asset quality has improved, meaning lower NPAs.
Its share had scaled to a high of Rs 335.90 recently on January 15. A technical correction then sent it back to a low of Rs 221.60 on September 8. However, after bottoming out at Rs 221.60, the share is gradually picking up.
On Friday of the last week it closed at Rs 243.25 and with a remarkable gain, especially based on highly encouraging working results. The uptrend as triggered on better working results, is expected to remain for some time and makes this a good bet for short-term trading or long-term investing.
Ramco Cements MP: 373; FV: Re 1
Ramco Cements was earlier known as Madras Cements. In the time of Harshad Mehta-led stock market in 1991-94 boom, its Rs 100 paid up share had reached a level of Rs 40,000 a peace. The share has been split thereafter. Last week, the company came out with excellent numbers for the quarter ended September.
It posted a 52 per cent rise in net profit this quarter when most of the other cement manufacturing companies either posted lower net profits or incurred losses for the period. The share of Ramco Cements had bottomed out at Rs 270 on March 27 this year. The share then rose to a high of Rs 380 in August, but the general downtrend in the markets pushed it back, though only briefly, as it did not remain depressed for long.
When the company came out with excellent working results on Friday, the share responded quite positively and scaled up to close at Rs 373.75, indicating a possibility of further rise in a normal market conditions. The share is recommended for buying for medium to long-term investing.
Motherson Sumi MP: 265; FV: Re 1
Motherson Sumi is one of the leading auto ancillary companies in India. The company has rewarded its long-term investors well with frequent bonus share issues and regular dividend payments. The company came out with excellent working results for the second quarter ended September, 2015.
The company posted a whopping 176 per cent rise in its net profit on a mere 14 per cent increase in sales for the period. This means that whatever additional sales that the company achieved got converted into net profit. The share had recently scaled to a high of Rs 395.85 in August, 2015 but was forced to fall up to Rs 217.30 on October 5, as the markets turned bearish.
However, after having bottomed out at Rs 217.30, it was gradually rising until announcement of excellent working results. It jumped significantly up on Friday following the disclosure of the numbers and closed at Rs 265.75. Thus the share has responded quite positively to better working results and therefore recommended for buying for medium to long-term investing.