Friday, May 21, 2021

Visaka Industries Ltd (509055) – Now Available at 40% Discount

Visaka Industries Ltd (509055)  closes   at 676.30  with  a  Loss  of   -1.20%   on    14-May-2021  with formation of  a  Small  Red  Candle    on Daily  Price Chart.

About the Company : Visaka Industries Ltd is engaged in the business of manufacture of cement fibre sheets, fibre cement boards & panels, solar panels and synthetic yarn.

Sector Update : Stable

Strength :  1. Yarn business returned to growth in Q4(2020-21)

2. The asbestos cement roofing industry is seeing a strong demand and pricing tailwinds after a disappointing period of 2-3 years. The sharp surge in domestic and international steel prices also seems to be benefiting asbestos sheet manufacturers.

3. Solid progress on market positioning and cost-control initiatives.

Financials : Visaka Industries Ltd has posted Net Sales / Revenue   of 1146.20 Cr & Net Profit of 110.60 Cr in FY2021 and expected to post Net Sales / Revenue   of 1261.30 Cr & Net Profit  of 113.60 Cr in FY2022 and Net Sales / Revenue   of 1367.40 Cr & Net Profit of 126.50 Cr in FY2023. 

Valuations  : The Company is now Trading at X 0.60  of its  valuations ( last 4Quaters earnings considered here) with ~40 % Discount    and at X0.59  of its FY 2022, which is now almost  ~41%  Discount    to its value and  X0.53 of its FY 2023 earning with a Discount   of ~47% .

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  2.60  . The  Equity Value Per Share ( Enterprise Value Method ) is  607.20.

Whats  best in It   : The company appears well-positioned to grow as the building products segment is anticipated to get a boost from government spending on infrastructure projects.Net Cash Accrual has increased from 90.42 Cr in FY2020 to 147.25 Cr in FY2021, whereas Capital Cycle Deterioration is 0.7 ( Below  is good). It appears  as Growth Candidate in our Analysis.

If We factor its earnings/valuations, its Price arrives at 1271.00 with consideration FY2023 earnings.

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   |

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