Nifty Next

Monday, June 1, 2020

Srikalahasthi Pipes Ltd – Under Valued Gem

Srikalahasthi Pipes Ltd closes at ₹148.35 with a Gain of +5.0 % on 01-June- 2020 with formation of a Green Candle on Daily Price Chart.

About the Company : Srikalahasthi Pipes Limited is engaged in the manufacture and supply of ductile iron (DI) pipe. The Company offers public utility services for water infrastructure development. It also produces low ash metallurgical (LAM) coke, sinter liquid metal and power for captive consumption in its integrated complex. In addition, it manufactures and supplies cement and pig iron. Its DI pipes are supplied to various water boards, municipal corporations, military engineer services, railways and contractors across the country for their water infrastructure projects. It offers DI pipes in a range of coatings and linings, including internal lining, which consists of cement mortar lining with Portland Slag cement or Sulfate resisting cement; external coating, which consists of metallic zinc coating with finishing layer of Bituminous Coating, and other linings and coatings, such as High Alumina Cement mortar lining, and Epoxy Coating and Polyethylene Sleeves.

The company has posted Net Sales of Rs.1662.90 Cr & Net Profit of Rs.187.67 in FY2020 and expected to Post Net Sales of Rs.1931.00 Cr & Net Profit of Rs.219.90 Cr in FY2021 .

Valuations : The Company is now Trading at X 0.22 of its Value. We have valued the company with its full Financial year 2020 earnings ( PAT ) with a Discount of ~78% and X 0.19 of its FY21 earnings with a Discount of ~81 % .

Margin of Safety (1Yr Bond Yield: Value>1 ) is now 7.5 ; which indicates Huge Under Valued stock

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 |

Sunday, May 31, 2020

Quess Corp Ltd – Cost Cutting measures will boost Financials

Quess Corp Ltd closes at ₹ 221.55 with a Gain of +5.0 % on 29-May- 2020 with formation of a Small Green Candle on Daily Price Chart.

The company is has post Net Sales of Rs.10991.50 Cr & Net Loss of Rs.-431.87 Cr in FY2020 and and expected to Post Net Sales of Rs. 10828.30 Cr & Net Profit of Rs.336.80 Cr in FY2021 & Net Sales of Rs.13261.0 Cr & Net Profit of Rs.396.40 Cr in FY2022.

Why in Focus : Quess Corp is engaged in the business of providing services in technology solutions, people services, facility management, industrial and internet business. The company is pursuing cost optimization to conserve cash. In April, it reduced its indirect cost by around 20 per cent and drew additional credit line of Rs 100 crore to meet liquidity related issues & decided not to take up any low margin new training programme with the government for now. They are to reduce exposure to low margin IT staffing and focus on the high margin segments.The cos has recently drawn Rs.100Cr addition line of credit to meet any liquidity crunch.

Source : Media Reports.

Valuations : The Company is now Trading at X -0.45 of its Value. We have valued the company with its full Financial year 2020 earnings ( PAT ), which is now almost ~150% Discount to its value & X0.52 of its FY2021 earning with a Discount of ~48% and X 0.49 of its FY2022 earnings with a Discount of ~51% .