3 hot stock calls from Geojit Financial Services

The diversified product portfolio, broad based customer profile and strong technological tie ups place MIL as a preferred choice for the OEMs.

Additionally, scaling up new product line to drive growth in Alloy wheels & battery business will paint positive outlook to the company. We value at 15x on FY19E and recommend ‘Buy’ rating.

 LG Balakrishnan & Bros Ltd                                              

Rating: BUY

LG Balakrishnan & Bros (LGB) is India’s leading manufacturers in 2wheeler chain transmission (Drive chains) and sprockets with a domestic market share of 75% and around 50% in the replacement market.

We expect the industry to grow by double digit in volume over FY17-19E led by increase in higher disposable income in rural following favourable monsoon and government initiatives, and shift towards premium bikes in the urban sector.

LGB is all set to cater to this growing demand from OEM's through the capacity additions in Jalna and Chennai. We factor revenue and PAT growth of 13% and 18% CAGR over FY17-19E and value at 12x on FY19E EPPS of 58.6.

Ahluwalia Contracts (India) Ltd                                               

Rating: BUY

Ahluwalia Contracts India Ltd (AHLU) is an integrated construction company, that  undertakes designing, engineering, mechanical and civil construction works for residential, institutional, commercial and industrial projects.

The government’s continued focus on infrastructure industry & a healthy order book of 3x TTM provides strong visibility given growing appetite in public and private projects.

AHLU's better return ratios & less leveraged balance sheet also provides competitive edge in winning big ticket projects.  We expect revenue & earnings CAGR of 13% and 22% over FY16-FY19E.