Monday, June 28, 2021

Why Adani Enterprises Ltd will make new highs ?

Adani Group is now entering into digital world. It has incorporated  Adani Digital Services Ltd.on 7th June 2021 with authorised capital of Rs.7.5 Crore.

Adani Digital Services Ltd is a RBI registered Payment solution provider will capture the Digital world in India which will grow to USD 84 Billion by 2025 at a CAGR of 22%.

As per our initial analysis, Adani Enterprises Ltd will be beneficial of this initiative.

Friday, June 25, 2021

Thyrocare Technologies Ltd (500312) – PharmEasy’s parent API Holdings acquiring is a gamechanger

Thyrocare Technologies Ltd (500312)  closes   at 1448.05 with  a  Gain   of   +6.20%   on    25-June-2021  with formation of  a  Long  green Candle    on Daily  Price Chart.

About the Company : Thyrocare is the largest B2B player in the diagnostics space and has a network of over 3,330 collection centres across 2,000 towns in India. It operates a multi-lab model with 1 mega central processing lab, two zonal processing labs and 13 regional processing labs across the country.

Sector Update :  India’s ehealth sector reached about $1.4 billion GMV in 2020 and is expected to grow around 10 times over the period of CY20-25. The industry is expected to grow its GMV by $11-15 billion by CY25.

Financials : Thyrocare Technologies Ltd  has posted Net Sales / Revenue   of 494.60 Cr & Net Profit of  113.10 Cr in FY2021 and expected to post Net Sales / Revenue   of 564.30Cr & Net Profit of 141.90 Cr in FY2022 & Net Sales / Revenue   of 635.60 Cr & Net Profit of 164.00 Cr in FY2023 and Net Sales / Revenue   of 741.30 Cr & Net Profit of 183.30 Cr in FY2024.

EPS will be improved from 21.4 in FY2021 to 31.50 in FY2023 & 20.40 in FY2023, Free Cash Flow will increase from 88.00 Cr to 172.50Cr during the same period. Book Value Per Share will increase from 80.80 to 92.0 in FY2023 & RoA will increase to 24.6%  by FY2023.

Valuations  : The Company is now Trading at X 4.10  of its  valuations of its FY2021 earnings with ~310% Premium and X3.24 of its FY2022 earnings with ~224% Premium & X2.80 of its FY2023 earnings with ~180%  premium and X2.51of its FY2024 earnings with ~151%  premium.

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  0.40   which  makes is attractive after ~60% dip in price. The  Equity Value Per Share ( Enterprise Value Method ) is  1445.10

If We factor its FY2024 earnings/valuations, its Price arrives at 2368 (without considering PharmEasy).

Market Sentiment   Update : Our Nifty Next Indictor (NNI) is now at 120.04 as on 25-June-2021, which suggests the Return on Equity Investment will be 8.4% in next 6Month; 1.7% in 12M & -5.0% (Negative) in 24M( Based on Historical data).

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

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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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Oil & Natural Gas Corpn Ltd (500312) – Raising production, reviving existing fields & Rising global oil and gas prices will be add-on in PAT

Oil & Natural Gas Corpn Ltd (500312)  closes   at 120.90 with  a  Fall   of   -0.90%   on    25-June-2021  with formation of  a  Long Red  Candle    on Daily  Price Chart.

About the Company : ONGC is the largest crude oil and natural gas Company in India, contributing around 71 per cent to Indian domestic production

Financials : Oil & Natural Gas Corpn Ltd  has posted Net Sales / Revenue   of 360572.00 Cr & Net Profit of  16249.00 Cr in FY2021 and expected to post Net Sales / Revenue   of 414660.00Cr & Net Profit of 27684.60 Cr in FY2022 & Net Sales / Revenue   of 448621.90 Cr & Net Profit of 25709.00 Cr in FY2023.

EPS will be improved from 12.92 in FY2021 to 22.0 in FY2022 & 20.40 in FY2023, reduction of debt from 98335.70Cr to 90926.40Cr with increase in Free Cash Flow from 1130.80 Cr to 14492.00 during the same period. Book Value Per Share will increase from 172 to 198 in FY2023 & RoE will increase from 6.07 to 10.7 by FY2023.

Valuations  : The Company is now Trading at X 0.60   of its  valuations of its FY2021 earnings with ~40% Discount and X0.33 of its FY2022 earnings with ~67% Discount & X0.65 of its FY2023 earnings with ~65%  Discount.

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  2.8   which  makes is attractive at currenct price. The  Equity Value Per Share ( Enterprise Value Method ) is  120.90

If We factor its FY2023 earnings/valuations, its Price arrives at 204.34 (Conservative approach applied).

Market Sentiment   Update : Our Nifty Next Indictor (NNI) is now at 120.04 as on 25-June-2021, which suggests the Return on Equity Investment will be 8.4% in next 6Month; 1.7% in 12M & -5.0% (Negative) in 24M( Based on Historical data).

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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Monday, June 21, 2021

Tube Investments of India Ltd (540762) – Rising Demand for premium MTB and kids cycles

Tube Investments of India Ltd (540762) closes   at 1192.15 with  a  Fall   of   -3.30%   on    18-June-2021  with formation of  a  Long Red  Candle    on Daily  Price Chart.

About the Company : Tube Investments of India Limited is an India-based mobility focused manufacturing company. The Company is engaged in manufacturing products for automotive and industrial applications. It operates through three segments: engineering, bicycles and metal formed products. The engineering segments is engaged in manufacturing cold drawn welded (CWD) and electric resistance welded (ERW) tubes, tubular components, large diameter tubes for hydraulic cylinders and off-road applications, and special grade cold rolled steel strips (CRSS). The bicycles segment is engaged in manufacturing and marketing a wide range of bicycle brands, fitness equipment and accessories. The metal formed products segment is engaged in manufacturing and supplying auto and industrial chains, blanking components, motor casings and metal formed products for automotive, industrial and railway segments

Strength  : 1. Sales are likely to touch 1.45crore units in FY22 compared to 1.2 crore in the last fiscal.  According to most sellers, the key drivers of demand are the surge in non­contact and non­equipment fitness sports due to social distancing norms. Of the four major segments — standard cycles, export range, premium and kids cycles — only premium and kid segments have driven up the demand.

2. In the 2020 fiscal the kids and premium segment cumulatively enjoyed a 40 per cent share of the overall cycle sales& it will increased to 50% in FY2022

3. Demand for cycles was mostly driven by metropolitan and Tier-1 cities, where demand grew by almost 100 per cent.

Financials : Tube Investments of India Ltd  has posted Net Sales / Revenue   of 6083.30 Cr & Net Profit of  286.30 Cr in FY2021 and expected to post Net Sales / Revenue   of 5355.60 Cr & Net Profit of 452.10Cr in FY2022 & Net Sales / Revenue   of 6183.20 Cr & Net Profit of 468.20 Cr in FY2023.

EPS will be improved from 14.85 in FY2021 to 29.50 in FY2023, reduction of debt from 209.50Cr to 66.00Cr with increase in Free Cash Flow from 125.20 Cr to 525.50 during the same period. Book Value Per Share will increase from 113 to 161 in FY2023.

Valuations  : The Company is now Trading at X 4.80   of its  valuations of its FY2021 earnings with ~380% Premium and X3.05 of its FY2022 earnings with ~205% premium & X2.95 of its FY2023 earnings with ~195% premium

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  0.30   which  makes is attractive after a ~70 Decline in Price . The  Equity Value Per Share ( Enterprise Value Method ) is  1000.60

If We factor its FY2023 earnings/valuations, its Price arrives at 1922.

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

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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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Monday, June 14, 2021

Sectors to Perform Well in 2021-2023

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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Sunday, June 6, 2021

Bharat Forge Ltd (532760) – Export & defence will strengthen its Balance sheet

Bharat Forge Ltd (532760) closes   at 751.10 with  a   Gain  of   +7.90%%   on    04-June-2021  with formation of  a  Long Red  Candle    on Daily  Price Chart.

About the Company : Bharat Forge is engaged in the manufacturing and selling of forged and machined Compoundant for auto and industry sector.

Strength : 1.the US government’s $6 trillion budget with focus in multiple areas including transportation is expected to boost demand for commercial vehicles (CV).

2.Profitability of its international subsidiaries have also improved from 5 per cent three years ago to double digits (10 per cent) now.

3.The company has acquired Sanghvi Forgings which will help it tap growth opportunities in the infrastructure and renewal energy space.

4.The strong class 8 commercial vehicle & Industrial segment (oil and gas space with demand coming back on rising crude oil prices )is doing well.

Financials : Bharat Forge Ltd has posted Net Sales / Revenue   of 6336.30 Cr & Net Loss  of - 126.40 Cr in FY2021 and expected to post Net Sales / Revenue   of 8481.30 Cr & Net Profit of 809.30 Cr in FY2022 & Net Sales / Revenue   of 10034.70 Cr & Net Profit of 1140.20 Cr in FY2023.

EPS will be improved from -2.70 in FY2021 to 24.0 in FY2023, RoE from 3.44% to 18.50%, RoA from 1% to 9.02% along with reduction of debt from 1808.50Cr to 1211.00 with increase in Free Cash Flow from 536.90 Cr to 981.40 during the same period.

Valuations  : The Company is now Trading at X 2.59   of its  valuations of its FY2022 earnings with ~159% Premium and X1.84 of its FY2023 earnings with ~84% premium ( We have not valued the company for FY2021 since it has posted Net Loss)

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  0(Zero)  which  makes is attractive .. The  Equity Value Per Share ( Enterprise Value Method ) is  740.70.

If We factor its FY2023 earnings/valuations, its Price arrives at 1056

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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Disclaimer

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