Sunday, October 4, 2020

Jyothy Labs Ltd : On a Debt Free Path


Jyothy Labs Ltd closes   at 548.45 with  a  Gain   of  +0.60%   on   01-Oct-2020   with formation of  a  Green Candle    on Daily  Price Chart.
About the Company : Jyothy Laboratories is principally engaged in manufacturing and marketing of fabric care, dishwashing, personal care and household insecticides products. Jyothy Labs Ltd has posted Net Sales / Revenue   of 1711.70 Cr & Net Profit of 17027 Cr in FY2020 and expected to post Net Sales / Revenue   of 1846.75 Cr & Net Profit  of 200.40Cr in FY2021.

Strength : 1. Net debt of the company is about Rs. 80 crore and it is around 3-4 months of net cash flows. At the current rate, there is neither any planned capex nor any major investment plan. By the December quarter, Cos. should be debt-free.

2.. Hopeful for a good business performance in the coming quarters.

 

Valuations  : Valuations  :  The Company is now Trading at X 2..50  of its  valuations ( last 4Quaters earnings considered here)at ~150% premium  and at X1.63  of its FY 2021, which is now almost  ~67%  Premium to its value .

Margin of Safety (1Yr Bond Yield: Value>1 ) is now 0.6; any downslide makes it attractive.

Return on Equity (ROE) which is now 13.62  for FY2020 will improve to  16.07% in FY2021 and EPS will improve from 4.64 in FY2020 to 5.46 in FY2021

Disclaimer : We are / may going to take exposure shortly.

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Data Source | NSE Website | Screener.In  | Capital Line | Money Control |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |


Wednesday, September 30, 2020

Likhitha Infrastructure Ltd. IPO & Its Valuations

Likhitha Infrastructure Ltd  incorporated in 1998, is an oil & gas pipeline infrastructure service provider in India, focused on laying pipeline networks along with the construction of associated facilities. The company also provides Operations & Maintenance (O&M) services to the City Gas Distribution (CGD) Companies in the county. In the last 5 years, the company has laid over 600 km of oil and gas pipelines including steel and Medium-Density Polyethylene (MDPE) networks. The company has its presence in over 16 states and 2 Union Territories.

Here are some quick details about this offer:

Issue period: 29 Sep 2020 to 1 October 2020

IPO Size: Rs.61.2 cr

Price band: Rs.117-120

Bid lot: 125 shares

Retail Category: Not less than 35% of the net offer

Likhitha Infrastructure Ltd  has Net Sales / Revenue   of 87.00 Cr & Net Profit of 7.0 Cr in FY2018 ; Net Sales / Revenue   of 139.00 Cr & Net Profit  of 18.00 Cr in FY2019 and Net Sales / Revenue   of 161.00 Cr & Net Profit of 20.00  Cr in FY2020.

We have valued the Price of each share based on EPV method and its comes at X64.10 of its FY2020 earnings. Likhitha Infrastructure Ltd ‘s share is being offered at Huge Premium to its FY2020 Earnings at the highest offer price of Rs.145.00, which is justified with its High RoE of 28.4 in FY2020 ( 35.5  FY2019) and ROCE of 27.7.

Source : Various Media Reports and RHP of the company.

Disclaimer : We are / may going to take exposure shortly.

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Data Source | NSE Website | Screener.In  | Capital Line | Money Control |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |

Kajaria Ceramics Ltd – Doubling operating cash flows

Kajaria Ceramics Ltd  closes   at 548.45 with  a  Gain   of  +5.40 %   on    29-Sep-2020   with formation of  a  Green Candle    on Daily  Price Chart.
About the Company : Kajaria Ceramics is engaged in a manufacturer of ceramic and vitrified wall and floor tiles
Kajaria Ceramics Ltd  has posted Net Sales / Revenue   of 2808.00 Cr & Net Profit of 231.20 Cr in FY2020 and expected to post Net Sales / Revenue   of 2197.10 Cr & Net Profit  of 141.70 Cr in FY2021 and Net Sales / Revenue   of 2607.3 Cr & Net Profit of 226.80 Cr in FY2022  and Net Sales / Revenue   of 3111.70 Cr & Net Profit of 304.20 Cr in FY2023.

Sector Update : The tiles sector will see momentum in the near term with metros and tier-1 cities set to further open up after the September quarter 2020.

Strength : Gradual recovery in demand from the domestic market, as well as robust growth in export orders. The falling cost amid improving volumes are also expected to aid the operating profit margin( Reduction in Gas Prices in Gujarat by 15%). Operating profit margin to improve from 13.8 per cent in FY21 to 16.5 per cent in FY22.

Valuations  : Valuations  :  The Company is now Trading at X 2..60  of its  valuations ( last 4Quaters earnings considered here)at ~160% premium  and at X3.71 of its FY 2021, which is now almost  ~2.71%  Premium to its value and  X 2.32  of its FY 2022 earning with a premium of ~132% and X1.73 of its FY2023 earning with ~73% premium to its valuations.

Margin of Safety (1Yr Bond Yield: Value>1 ) is now 0.6; any downslide makes it attractive. The Best Price at X1 EPV to Past Reference(5Yrs) is Rs. 445.

Return on Equity (ROE) which is now 14.90 for FY2020 will be 7.8% in FY2021 and will improve to +13.90 % by the FY2023.

Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

Data Source | NSE Website | Screener.In  | Capital Line | Money Control |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |

 


Tuesday, September 29, 2020

Mazagon Dock Shipbuilders IPO & Its Valuations

Mazagon Dock Shipbuilders is a defence public sector undertaking (PSU) shipyard under the department of defence production, Ministry of Defence (MoD) with a maximum shipbuilding and submarine capacity of 40,000 dead weight tonnage (DWT). The company is engaged in the construction and repair of warships and submarines for the MoD and is used by the Indian Navy and commercial clients.
It is a wholly-owned Government of India company, conferred with the "Mini Ratna-I" status in 2006.
The company's business has 2 key operating divisions:

§  Shipbuilding division: This division undertakes building and repairing of naval ships.

§  Submarine and heavy engineering division: This division includes building, repairing, and refitting of diesel electric submarines.

Here are some quick details about this offer:Issue period: 29 September 2020 to 1 October 2020IPO Size: Rs 4.4 billion

Price band: Rs 135 to Rs 145 per equity share

Bid lot: 103 shares and in multiples thereof

Retail Category: Not less than 35% of the net offer

Object of the Issue: The object of the issue is to carry out the divestment of 30,599,017 equity shares by the Government of India constituting 15.17% of the company's pre-offer paid up equity share capital. While the company has also stated the objective of the IPO is to achieve the benefits of listing equity shares on stock exchanges, it will not receive any proceeds from the offer as the entire offer is offer for sale (OFS).

The profit after tax for fiscal 2017, 2018 and 2019 and 2020, were Rs 598.30 crore, Rs.496.20 crore and Rs 532.50 crore and Rs 477.10 crore, respectively.

We have valued the Price of each share based on EPV method and its comes at X3.3 of its FY2020 earnings. Mazagon Dock Shipbuilders‘s share is being offered at ~330% Premium to its FY2020 Earnings at the highest offer price of Rs.145.00.

Source : Various Media Reports and RHP of the company.

Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

Data Source | NSE Website | Screener.In  | Capital Line | Money Control |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |

 


Sunday, August 30, 2020

Bharti Airtel Ltd – Rising Revenue


Bharti Airtel Ltd  closes   at 523.55 with  a  Gain   of  +2.50 %   on    28-Aug-2020   with formation of  a  Green Candle    on Daily  Price Chart.
About the Company : Bharti Airtel Ltd is principally engaged in provision of telecommunication services in India.

Bharti Airtel Ltd  has posted Net Sales / Revenue   of 87539.00 & Net Loss   of -32183.20 Cr in FY2020 and expected to post Net Sales / Revenue   of 100728.10 Cr & Net Loss  of 12727.70 Cr in FY2021 and Net Sales / Revenue   of 113775.00 Cr & Net Profit of 8437.00 Cr in FY2022  and Net Sales / Revenue   of 113775.00 Cr & Net Profit of 8437.00 Cr in FY2022  and Net Sales / Revenue   of 128501.30  Cr & Net Profit of 13446.10 Cr in FY2022 .

Sector Update : The industry's revenue will grow at 14-15 per cent in FY21, led by some improvement in average revenue per user (ARPU).^ Source : Media Report

Valuations  : Since the Company has posted New Loss in FY2020 and expected to reduce it losses in FY2021, our model doesn’t value the Loss making cos. As the company is expected to post Priofit in FY2022 and FY2023, it is now Trading at X2.02 of its FY2022 earning and X1.27 of its FY2023 earnings.

Return on Equity (ROE) which is now -4.56 for FY2020 will improve to +17.10% by the FY2023.

The Fare Value of Equity Per Share is 259 for FY2022 and 413 for FY2023. A Decline in price will make it attractive (~27% fall to reach it FY23 fair value) for Long Term.

Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

Data Source | NSE Website | Screener.In  | Capital Line | Money Control |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |

Somany Home Innovation Ltd – Perfect Kitchen Appliances Player


Somany Home Innovation Ltd  closes   at  91.60 with  a  Loss    of  -1.10 %   on    28-Aug-2020   with formation of  a  Red Candle    on Daily  Price Chart.
About the Company : Somany Home Innovations Ltd. (SHIL) is a newly created Corporate Entity of HSIL Limited, vastly recognised by its Brand Hindware, a leading name in the Indian market. SHIL is focused on servicing end-consumers in the market and is involved in branding, marketing, sales, distribution, trading, service etc. of Consumer Appliances under the Brand name ‘Hindware’, ‘Moonbow’ and Furniture Retail Business under the Brand name ‘Evok’.

Sector Update : The kitchen appliances market in India is estimated at INR 21,500 Cr in 2018 of which 45-50% is contributed by large kitchen appliances.The market is expected to grow at a CAGR of ~12% largely driven by the high growth in the large kitchen appliances segment. The large kitchen appliance market is expected to witness a CAGR of ~15% for next 5 years whereas food preparation and cooking appliance market will grow at a CAGR of ~8% and ~9% respectively. Mixer grinders contributes to 60-65% of food preparation market whereas water purifier is the largest category in large kitchen appliance with 50-55% of the market.

Somany Home Innovation Ltd  has posted Net Sales / Revenue   of 1613.12 Cr  & Net Profit  of 23.11 Cr in FY2020 . Operating Profit  is 88 Cr and Operating Profit margin is 5% and Net Profit margin is 1%.

Valuations  :  The Company is now Trading at X 1.7 of its  valuations of FY2020 earnings.

Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

Data Source | NSE Website | Screener.In  | Capital Line | Money Control |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |


Thursday, August 27, 2020

Thejo Engineering Ltd – Engineering Play & Valuations


Thejo Engineering Ltd  closes   at 683.55 with  a  Gain   of  +5.0 %   on    27-Aug-2020   with formation of  a  Green   Candle    on Daily  Price Chart.
About the Company : Thejo Engineering is an Engineering Solutions provider for Bulk Material Handling, Mineral Processing and Corrosion Protection to the Core Sector Industries like mining, power, steel, cement, ports and fertilizers. The Companys services include belt conveyor installation, maintenance and operations, while its product portfolio covers design, manufacture and supply of engineering products for Bulk Material Handling, Mineral Processing and Corrosion Protection

Thejo Engineering Ltd has posted Net Sales / Revenue   of 201.00 Cr  & Net Profit  of 14 Cr in FY2020 . Operating Profit margin is 13% and Met Profit margin is 7% and Tax Paid 27% in FY2020.

Valuations  :  The Company is now Trading at X 1.0 of its  valuations ( last 4Quaters earnings considered here), which indicates that it is now Trading at Par with its Fair Value.

Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

Data Source | NSE Website | Screener.In  | Capital Line | Money Control |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |


Tuesday, August 25, 2020

Matrimony.com Ltd – A Net Profit Multiplier


Matrimony.com Ltd closes   at 547.45 with  a  Fall    of  -4.30 %   on    21-Aug-2020   with formation of  a  Red  Candle    on Daily  Price Chart.
About the Company : Matrimony.com is engaged in offers online matchmaking services on internet and mobile platforms. The Company delivers matchmaking services to users in India and the Indian diaspora through websites, mobile sites and mobile apps complemented by a wide on-the-ground network in India.
Matrimony.com Ltd has posted Net Sales / Revenue   of 371.80 Cr  & Net Profit  of 29.50 Cr in FY2020 and expected to post Net Sales / Revenue   of 383.30 Cr & Net Profit of ₹42.20 Cr in FY2021 and Net Sales / Revenue   of 435.10 Cr & Net Profit of 62.60 Cr in FY2022  & Net Sales / Revenue   of 474.80 Cr & Net Profit of 96.80  Cr in FY2023 .
EPS which is 13 for FY2020 will improve to 42.0 by FY2023 & OPM from 7.13% in FY2020 to 23.20% by FY2023 and Net Margin from 7.94% in FY2020 to 20.4% during the same period.
Valuations  :  The Company is now Trading at X 3.60  of its  valuations ( last 4Quaters earnings considered here)at ~260% premium  and at X1.74  of its FY 2021, which is now almost  ~74%  Premium to its value  and X1.17  of its FY2022 earnings with a Premium  of ~ 17% & X0.76 of its FY2023 earnings with a Discount of ~24%

The Fare Value of Equity Per Share is 311.00 for FY2021 & 462.00 for FY2022 and 714.00 for FY2023, which Translate the Price of per share  to 2572.00 for FY2023.

Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

Data Source | NSE Website | Screener.In  | Capital Line | Money Control |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |


Balkrishna Industries Ltd – Agri tyre exports will boost its financials

Balkrishna Industries Ltd is Trading   at 1375.95   with  a  Gain   of   + 0.20 %   on    25-Aug-2020   with formation of  a  Green  Candle    on Daily  Price Chart at the time of writing this article.

About the Company : Balkrishna Industries is engaged in the business of manufacturing and selling of Off-Highway Tyres (OHT) in the specialist segments such as Agricultural, Industrial & Construction, Earthmovers & Port, Mining, Forestry, Lawn & Garden and All Terrain Vehicles (ATV).

Balkrishna Industries Ltd has posted Net Sales / Revenue   of 4810 Cr  & Net Profit  of 960Cr in FY2020 and expected to post Net Sales / Revenue   of 4890 Cr & Net Profit of 830 Cr in FY2021 and Net Sales / Revenue   of 5800 Cr & Net Profit of 1060 Cr in FY2022 .

Whats the Future : Management is optimistic to improve the OPM to 28-30% from 77%(FY2020). Doubling the market share in industrial tyre segment (mining and construction). Agriculture tyre exports from India have been strong in US & Europe.

Valuations  :  The Company is now Trading at X 2.0  of its  valuations ( last 4Quaters earnings considered here)at ~100% premium  and at X1.91  of its FY 2021, which is now almost  ~91%  Premium to its value  and X1.49of its FY2022 earnings with a Premium  of ~ 49%.

The Fare Value of Equity Per Share is 719.78 for FY2021 and 919.00 for FY2022.

Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

Data Source | NSE Website | Screener.In  | Capital Line | Money Control |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |


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