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.

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   |


No comments:

Post a Comment

Thanks for Your Valuable comments. It will make Us to Serve You in Better Way. For Any STOCKS Query ,Please Call NiftyNext +91 880 2230 836.

Subscribe to: Post Comments (Atom)

Disclaimer

The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The above recommendations are based on the theory of Technical Analysis and do not reflect the fundamental validity of the Scrip. www.niftynext..com does 't take any Responsibility for any losses arising from using the Stocks Recommendations.
We( WWW.NIFTYNEXT.COM) are not Registered with Any Regulatory Body in India ie SEBI,NSE,BSE,AMFI or Any Otheres.

Blog Archive