INTERESTING FACT:
FD Return rate : 5.5%
Tax rate: 30%
Post tax nominal return rate : 3.85%
Inflation rate : 6%
Real return rate: -2.15%.
This is the "guaranteed return" everyone in india is practically getting currently.
But In stock market everyone want to get 10 - 20 % on everyday
FD Return rate : 5.5%
Tax rate: 30%
Post tax nominal return rate : 3.85%
Inflation rate : 6%
Real return rate: -2.15%.
This is the "guaranteed return" everyone in india is practically getting currently.
But In stock market everyone want to get 10 - 20 % on everyday
𝗥𝗲𝗹𝗶𝗴𝗮𝗿𝗲 𝗘𝗻𝘁𝗲𝗿𝗽𝗿𝗶𝘀𝗲𝘀: 𝙍𝙚𝙜𝙖𝙞𝙣𝙞𝙣𝙜 𝙞𝙩𝙨 𝙡𝙤𝙨𝙩 𝙜𝙡𝙤𝙧𝙮
𝐓𝐏 𝟐𝟎𝟎/𝟐𝟓𝟎
🎯 Expecting 2 BIG Corporate Triggers in coming months
Religare Ent which was once considered to be Goldman Sachs of India in early 2008 and had spectacular debut on listing went through the worst times in last 7 years due to lousy promoters who turned notorious. However, since the company was professionally managed they managed to build top class franchisee. They sold their AMC business to Invesco which is doing great. As of now look at valuations:
𝘾𝙖𝙧𝙚 𝙃𝙚𝙖𝙡𝙩𝙝 (𝙛𝙤𝙧𝙢𝙚𝙧𝙡𝙮 𝙍𝙚𝙡𝙞𝙜𝙖𝙧𝙚 𝙝𝙚𝙖𝙡𝙩𝙝): 𝙍𝙀𝙇 𝙝𝙤𝙡𝙙𝙨 𝙖𝙗𝙤𝙫𝙚 71% 𝙞𝙣 𝙞𝙩. 𝙄𝙩’𝙨 𝙫𝙖𝙡𝙪𝙖𝙩𝙞𝙤𝙣 𝙞𝙨 𝙩𝙞𝙥𝙥𝙚𝙙 𝙖𝙩 200/ 𝙨𝙝𝙖𝙧𝙚 𝙬𝙝𝙞𝙘𝙝 𝙢𝙚𝙖𝙣𝙨 𝙘𝙡𝙤𝙨𝙚 𝙩𝙤 10000 𝘾𝙧 𝙫𝙖𝙡𝙪𝙖𝙩𝙞𝙤𝙣. 𝙊𝙩𝙝𝙚𝙧 𝙢𝙖𝙟𝙤𝙧 𝙞𝙣𝙫𝙚𝙨𝙩𝙤𝙧𝙨 𝙞𝙣𝙘𝙡𝙪𝙙𝙚 𝙆𝙚𝙙𝙖𝙧𝙖, 𝘾𝙤𝙧𝙥 𝙗𝙖𝙣𝙠. 𝘾𝙤𝙢𝙥𝙖𝙣𝙮 𝙞𝙨 𝙜𝙧𝙤𝙬𝙞𝙣𝙜 𝙖𝙩 𝘾𝘼𝙂𝙍 50%+ 𝙖𝙣𝙙 𝙬𝙞𝙡𝙡 𝙘𝙡𝙤𝙨𝙚 𝙮𝙚𝙖𝙧 𝙬𝙞𝙩𝙝 𝙘𝙡𝙤𝙨𝙚 𝙩𝙤 2800-3000 𝙘𝙧 𝙬𝙧𝙞𝙩𝙩𝙚𝙣 𝙥𝙧𝙚𝙢𝙞𝙪𝙢
2 year forward basis valuation comes to 10k crores approx if you see valuation matrix of 2-2.5x of written premium. Professionally managed company under able leadership of Anuj Gulati(ex Icici Lombard) since inception.
Broking and distribution: we believe this business will soon be sold for close to 300 cr. A great franchisee with top line of above 200 cr but made losses due to top heavy management and excess over heads. Senior management has been a drag as a lot of performers left 3 years back to a leading wealth management firm. However, still has a lot of retail base and B2B business so good valuation on that basis.
Rfl(Religare finvest ltd): This has been a big drag due to which REL valuations are depressed. Was to be sold to TCG but did not pass RBI test or may be REL new management led by Bay Capital felt they can get better valuation. They have paid almost debt of 4000cr + to banks and expects debt restructuring to go through for remaining 5000cr + , if this happens then one can expect REL to see its old glory.
🎯🎯Another trigger is Religare could get FD ( 600 cr + Interest for 6-7 years) back from LVB which is now taken over by DBS as it was wrongfully adjusted against liability of ex promoters. Religare has water tight case
3rd trigger could be RFL going to Ugro Capital(promoters are ex Religare top management). In any event this is going to be big . Looking at above scenarios REL looks good for 150+ without RFL being sorted out in immediate future and above 250 if RFL issues can be sorted out anytime soon. Current investors and management led by Rashmi Saluja are working tirelessly to get the shine back on this diamond.
Personal diligence advised
𝐓𝐏 𝟐𝟎𝟎/𝟐𝟓𝟎
🎯 Expecting 2 BIG Corporate Triggers in coming months
Religare Ent which was once considered to be Goldman Sachs of India in early 2008 and had spectacular debut on listing went through the worst times in last 7 years due to lousy promoters who turned notorious. However, since the company was professionally managed they managed to build top class franchisee. They sold their AMC business to Invesco which is doing great. As of now look at valuations:
𝘾𝙖𝙧𝙚 𝙃𝙚𝙖𝙡𝙩𝙝 (𝙛𝙤𝙧𝙢𝙚𝙧𝙡𝙮 𝙍𝙚𝙡𝙞𝙜𝙖𝙧𝙚 𝙝𝙚𝙖𝙡𝙩𝙝): 𝙍𝙀𝙇 𝙝𝙤𝙡𝙙𝙨 𝙖𝙗𝙤𝙫𝙚 71% 𝙞𝙣 𝙞𝙩. 𝙄𝙩’𝙨 𝙫𝙖𝙡𝙪𝙖𝙩𝙞𝙤𝙣 𝙞𝙨 𝙩𝙞𝙥𝙥𝙚𝙙 𝙖𝙩 200/ 𝙨𝙝𝙖𝙧𝙚 𝙬𝙝𝙞𝙘𝙝 𝙢𝙚𝙖𝙣𝙨 𝙘𝙡𝙤𝙨𝙚 𝙩𝙤 10000 𝘾𝙧 𝙫𝙖𝙡𝙪𝙖𝙩𝙞𝙤𝙣. 𝙊𝙩𝙝𝙚𝙧 𝙢𝙖𝙟𝙤𝙧 𝙞𝙣𝙫𝙚𝙨𝙩𝙤𝙧𝙨 𝙞𝙣𝙘𝙡𝙪𝙙𝙚 𝙆𝙚𝙙𝙖𝙧𝙖, 𝘾𝙤𝙧𝙥 𝙗𝙖𝙣𝙠. 𝘾𝙤𝙢𝙥𝙖𝙣𝙮 𝙞𝙨 𝙜𝙧𝙤𝙬𝙞𝙣𝙜 𝙖𝙩 𝘾𝘼𝙂𝙍 50%+ 𝙖𝙣𝙙 𝙬𝙞𝙡𝙡 𝙘𝙡𝙤𝙨𝙚 𝙮𝙚𝙖𝙧 𝙬𝙞𝙩𝙝 𝙘𝙡𝙤𝙨𝙚 𝙩𝙤 2800-3000 𝙘𝙧 𝙬𝙧𝙞𝙩𝙩𝙚𝙣 𝙥𝙧𝙚𝙢𝙞𝙪𝙢
2 year forward basis valuation comes to 10k crores approx if you see valuation matrix of 2-2.5x of written premium. Professionally managed company under able leadership of Anuj Gulati(ex Icici Lombard) since inception.
Broking and distribution: we believe this business will soon be sold for close to 300 cr. A great franchisee with top line of above 200 cr but made losses due to top heavy management and excess over heads. Senior management has been a drag as a lot of performers left 3 years back to a leading wealth management firm. However, still has a lot of retail base and B2B business so good valuation on that basis.
Rfl(Religare finvest ltd): This has been a big drag due to which REL valuations are depressed. Was to be sold to TCG but did not pass RBI test or may be REL new management led by Bay Capital felt they can get better valuation. They have paid almost debt of 4000cr + to banks and expects debt restructuring to go through for remaining 5000cr + , if this happens then one can expect REL to see its old glory.
🎯🎯Another trigger is Religare could get FD ( 600 cr + Interest for 6-7 years) back from LVB which is now taken over by DBS as it was wrongfully adjusted against liability of ex promoters. Religare has water tight case
3rd trigger could be RFL going to Ugro Capital(promoters are ex Religare top management). In any event this is going to be big . Looking at above scenarios REL looks good for 150+ without RFL being sorted out in immediate future and above 250 if RFL issues can be sorted out anytime soon. Current investors and management led by Rashmi Saluja are working tirelessly to get the shine back on this diamond.
Personal diligence advised
FOR EDUCATION/INFORMATION PURPOSE.
TECHNICAL BUY CALL:
Religare Enterprise. The stock has given 52-week breakout in the charts on strong volumes. Can be bought at ~ Rs.115 for an initial target of Rs.150 (3-4 weeks) & then at Rs.200 on a longer time frame (2-3 months). Keep appropriate stop loss.
Alert: Due diligence is advised.
Disclosure: I own the company's shares.
TECHNICAL BUY CALL:
Religare Enterprise. The stock has given 52-week breakout in the charts on strong volumes. Can be bought at ~ Rs.115 for an initial target of Rs.150 (3-4 weeks) & then at Rs.200 on a longer time frame (2-3 months). Keep appropriate stop loss.
Alert: Due diligence is advised.
Disclosure: I own the company's shares.
SHIVA MILLS: HIGH MARGINS!
Shiva Mills Ltd had reported 12% NP margin for Q3FY21. Apart from boom in cotton yarn prices, another factor is that _*Shiva Mills is fully self reliant for power requirements*_ Company has Wind Energy. Value of wind energy installations alone is 40 cr whereas mcap is just 51 Cr
*Shiva mills CMP ₹59*
Target: ₹120-130
Q3 EPS: ₹6
Looking at other cotton yarn companies results (Sportking, Nitin spinners, DCM nouvelle),
*estimate of Q4 EPS: ₹9 (conservative)*
*FY21 EPS estimate: ₹26* (company trading at just *2.4 forward PE*)😱
✅Even if stock gets very low multiple of 5, stock price deserves to be 130
Investors interested in a detailed report can check our previous reports on the same
Shiva Mills Ltd had reported 12% NP margin for Q3FY21. Apart from boom in cotton yarn prices, another factor is that _*Shiva Mills is fully self reliant for power requirements*_ Company has Wind Energy. Value of wind energy installations alone is 40 cr whereas mcap is just 51 Cr
*Shiva mills CMP ₹59*
Target: ₹120-130
Q3 EPS: ₹6
Looking at other cotton yarn companies results (Sportking, Nitin spinners, DCM nouvelle),
*estimate of Q4 EPS: ₹9 (conservative)*
*FY21 EPS estimate: ₹26* (company trading at just *2.4 forward PE*)😱
✅Even if stock gets very low multiple of 5, stock price deserves to be 130
Investors interested in a detailed report can check our previous reports on the same
*Panchmahal Steel* - _Stellar Q4 Performance_
TP: ₹ 100/ near term
▪️Revenue came
at 113cr vs 93cr _(+22% QoQ)_ vs 71cr _(+59% YoY)_
▪️EBITDA came at 29cr vs 8.72cr _(+233% QoQ)_ vs 0.3cr _(+9567% YoY)_
▪️EBITDA margin at 25.7% vs 9.4% _(+1630 bps QoQ)_
▪️PAT came at 11cr vs 4.3cr _(+156% QoQ)_ vs loss of 25cr YoY
▪️ _*Q4 EPS came at 5.78 _(+156% QoQ) vs 2.24 vs Negative EPS of 2.7 YoY*_
*Finance cost came significantly lower at just 1.6cr vs 2.6cr QoQ*
TP: ₹ 100/ near term
▪️Revenue came
at 113cr vs 93cr _(+22% QoQ)_ vs 71cr _(+59% YoY)_
▪️EBITDA came at 29cr vs 8.72cr _(+233% QoQ)_ vs 0.3cr _(+9567% YoY)_
▪️EBITDA margin at 25.7% vs 9.4% _(+1630 bps QoQ)_
▪️PAT came at 11cr vs 4.3cr _(+156% QoQ)_ vs loss of 25cr YoY
▪️ _*Q4 EPS came at 5.78 _(+156% QoQ) vs 2.24 vs Negative EPS of 2.7 YoY*_
*Finance cost came significantly lower at just 1.6cr vs 2.6cr QoQ*
RANA SUGAR: DoW Updates
1) Denofwealth estimates Q4 NP at 24-25 Cr Vs Loss last year
2) HoS case of regulatory agency is closed. If true, it will be big trigger
3) HoS debt of one bank settled at 50 pct haircut
RANA SUGAR: OTS ( debt restructuring done. Now co bound to show much higher margins)
Buy even now for REAL MULTIBAGGER gains
👉Only Sugar co in Cattle Feed also
✅ _*Distillery Division selling Liquor under own Brand*_
👉McapxSales ratio Lowest in peer group
Dark Horse:Rana Sugar
TP: Rs 35
Rationale:
1) Very low debt after completion of OTS, paving way for super profits
2) Q3 NP 20 Cr
3) Export subsidy not accounted so far
4) Q4 NP can be 25 Cr Vs Loss YoY ( export subsidy to come in Q4)
5) _*Stock tdg 2xFY22EEPS*_
6) Mcap only 0.2xFY22 Sales
✅16500 TCD Sugar
✅ 500 TCD Sugar beet
✅ 120 MW power
✅ 60 KLPD Distillery
_*Q4 NP can be 25 Cr Vs Loss YoY. Stock can be 20 Immediately after Q4*_
Annual revenue 1300 Cr
Possible 20 by June End, subject to mkt conditions
Possible 35 in 12 months subject to mkt conditions
1) Denofwealth estimates Q4 NP at 24-25 Cr Vs Loss last year
2) HoS case of regulatory agency is closed. If true, it will be big trigger
3) HoS debt of one bank settled at 50 pct haircut
RANA SUGAR: OTS ( debt restructuring done. Now co bound to show much higher margins)
Buy even now for REAL MULTIBAGGER gains
👉Only Sugar co in Cattle Feed also
✅ _*Distillery Division selling Liquor under own Brand*_
👉McapxSales ratio Lowest in peer group
Dark Horse:Rana Sugar
TP: Rs 35
Rationale:
1) Very low debt after completion of OTS, paving way for super profits
2) Q3 NP 20 Cr
3) Export subsidy not accounted so far
4) Q4 NP can be 25 Cr Vs Loss YoY ( export subsidy to come in Q4)
5) _*Stock tdg 2xFY22EEPS*_
6) Mcap only 0.2xFY22 Sales
✅16500 TCD Sugar
✅ 500 TCD Sugar beet
✅ 120 MW power
✅ 60 KLPD Distillery
_*Q4 NP can be 25 Cr Vs Loss YoY. Stock can be 20 Immediately after Q4*_
Annual revenue 1300 Cr
Possible 20 by June End, subject to mkt conditions
Possible 35 in 12 months subject to mkt conditions
*RDB Rasayans Ltd _(BUY for TP 175)_*
Small cap Jumbo bag mfr for Jumbo returns
▫️Tiny Mkt cap of 140cr
▫️9MFY21 PAT ~ 16cr
▫️9MFY21 EPS ~ 9rs
▫️ *Debt Free Company*
▪️Q4FY21E EPS estimated to be 4rs, which implies FY21 EPS of 13rs
▪️FY22E Revenues at 115cr
▪️FY22E EPS of 18rs (Can be even better)
▪️ *Co trades at forward P/E of just 4.5x FY22E EPS*
▫️RDB Rasayan is a dominant player in FIBC bags from eastern zone having advantage over its competitions as its plant along with expanded capacity is at HALDIA where the raw material availability is easy.
▫️RDB Rasayan has specialisation in carbon coated FIBC bags that too of 500 to 2000 kg size.
▫️Has installed capacity of 25 Lac Bags of Woven Sack bag & 2 Lac Jumbo bags per Month.
▫️Exports 30% of products to European Countries
▫️Scrapping of anti dumping duty on polypropylene is a big positive as cost of imports fell substantially. Polypropylene is used for manufacture of woven sacks for cement, foodgrains, sugar, fertilizer, bags for fruits and vegetables as also film packaging. This will lead to huge margin expansion as cost of Raw Materials will be significantly lower.
▫️Also co's Kharagpur expansion is completed which has added good volume growth in Q2 and Q3.
▫️Polyproplene prices already reduced by Rs. 3500 per ton which will lead to ~ 4-5% reduction in cost of Raw Materials.
FY22 is set to be the best ever in terms of both Topline & Bottomline growth and will witness huge margin expansion.
▫️Another advantage for the co will be to move the idle cash parked in ICD to MF industry back. Earlier co had invested in MF. With investment in MF the dividend will raise yield from current post tax 5 to 6 pc to almost 14% (MF generally give 14 pc on average). If you see RDB rasayan has huge other income of Rs 9.76cr. The dividend earned will not be liable to tax and pre tax earnings could become post tax earnings if co announced dividend to the extent of dividend earned. Section 80 M comes handy here.
*Even with our conservative estimates RDB Rasayan looks highly undervalued and we suggest a strong BUY with conservative TP of 175.*
_Above TP is subject to market conditions. Personal due diligence advised_
Small cap Jumbo bag mfr for Jumbo returns
▫️Tiny Mkt cap of 140cr
▫️9MFY21 PAT ~ 16cr
▫️9MFY21 EPS ~ 9rs
▫️ *Debt Free Company*
▪️Q4FY21E EPS estimated to be 4rs, which implies FY21 EPS of 13rs
▪️FY22E Revenues at 115cr
▪️FY22E EPS of 18rs (Can be even better)
▪️ *Co trades at forward P/E of just 4.5x FY22E EPS*
▫️RDB Rasayan is a dominant player in FIBC bags from eastern zone having advantage over its competitions as its plant along with expanded capacity is at HALDIA where the raw material availability is easy.
▫️RDB Rasayan has specialisation in carbon coated FIBC bags that too of 500 to 2000 kg size.
▫️Has installed capacity of 25 Lac Bags of Woven Sack bag & 2 Lac Jumbo bags per Month.
▫️Exports 30% of products to European Countries
▫️Scrapping of anti dumping duty on polypropylene is a big positive as cost of imports fell substantially. Polypropylene is used for manufacture of woven sacks for cement, foodgrains, sugar, fertilizer, bags for fruits and vegetables as also film packaging. This will lead to huge margin expansion as cost of Raw Materials will be significantly lower.
▫️Also co's Kharagpur expansion is completed which has added good volume growth in Q2 and Q3.
▫️Polyproplene prices already reduced by Rs. 3500 per ton which will lead to ~ 4-5% reduction in cost of Raw Materials.
FY22 is set to be the best ever in terms of both Topline & Bottomline growth and will witness huge margin expansion.
▫️Another advantage for the co will be to move the idle cash parked in ICD to MF industry back. Earlier co had invested in MF. With investment in MF the dividend will raise yield from current post tax 5 to 6 pc to almost 14% (MF generally give 14 pc on average). If you see RDB rasayan has huge other income of Rs 9.76cr. The dividend earned will not be liable to tax and pre tax earnings could become post tax earnings if co announced dividend to the extent of dividend earned. Section 80 M comes handy here.
*Even with our conservative estimates RDB Rasayan looks highly undervalued and we suggest a strong BUY with conservative TP of 175.*
_Above TP is subject to market conditions. Personal due diligence advised_
*Nahar Ind Ent: Must Buy Textile Stock*
TP: ₹ 130-150
Screamingly Attractive:
✅ Tdg @ 1xFY22E Ebidta
✅PE Ratio 2xFY22EEPS
✅ Mcap 0.12xAnnual Revenue
✅ Book Value ₹ 184
🎯Q4 sets New Record:
▫️Revenue came at 467cr vs 420cr _(+12% QoQ)_ vs 411cr _(+14% YoY)_
▫️EBITDA came at 71.2cr vs 33cr _(+90% QoQ)_ vs 35cr _(+456% YoY)_
▫️EBITDA margin at 15.3% vs 7.9% _(+740 bps QoQ)_ vs 8.5% _(+690 bps YoY)_
▫️PAT came at 40.2cr vs 4.57cr _(+780% QoQ)_ vs loss of 1cr YoY
▫️ *Q4 EPS came at 10.1 vs 1.15 _(+780% QoQ)_ vs Negative EPS of 0.66 YoY*
Our earlier Report👇
NAHAR IND ENT:TP Rs 150
Time Frame:18 months
Cheapest Textile Stock
💎Mcap just 11%xFY22E Sales
Capex 2100 Cr for similar capacity new plant
Stock had traded at 170 when Sensex was 1/3rd of current levels
🎯🎯Yarn▶️Fabric➡️Garment⏩⏩Retail
🌈Cotton County Retail Ltd being merged with Nahar Ind Ent
✅ CMP 0.35xBook
✅Tdg @ 1.2xFY22EEbidta
✅ Quoting @ 3.2xFY22EEPS
✅Mcap only 11%xFY22E Revenue
*Excellent Q3FY21*
🚀🚀EBITDA 33cr vs 6cr _(+450% QoQ) vs 21cr _(+57% YoY)_
🚀🚀PAT 5cr vs 20cr Loss QoQ vs 2.7cr _(+85% YoY)_
🚀🚀EPS ₹ 1.13 vs (-5.09) QoQ vs 0.66 _(+85% YoY)_
_*Decent Capacities*_
# 271000 Spindles for Yarn
#7832 Rotors for Yarn
#110 million mtr Fabric capacity
# 13 TPD Yarn dyeing ( big)
#53 MW captive Power Plant
# 2500 TCD Sugar plant
# Total 7 plants
✅Mcap 220 Cr Vs 148 Cr Ebidta ( FY18)
✅Mcap 220 Cr Vs 2000- Cr Revenue
PAST FINANCIALS~
💎FY18- Revenue 1759 Cr, Interest 71 Cr, Depreciation 66 Cr, NP 18 Cr *Ebidta 148 Cr*
💎 FY19-Revenue 1866 Cr, Interest 67 Cr, Depreciation 79 Cr, Profit (22Cr), *Ebidta 118 Cr*
💎 FY20-Revenue 1573 Cr, Interest 65 Cr, Depreciation 71 Cr, Profit (25 Cr) *Ebidta 91 Cr*
FY18 was moderate year. However, performance had declined in subsequent 2 years as globally, yarn/Fabric prices had declined 10-15%
NAHARINDUS has reported only 1 Cr Ebidta in H1FY21 due to lockdown as plants operated at around 25% capacity
🌈 Current Cotton Textile boom can last for next 2 years at least. Stock can make New Lifetime HIGH
TP: ₹ 130-150
Screamingly Attractive:
✅ Tdg @ 1xFY22E Ebidta
✅PE Ratio 2xFY22EEPS
✅ Mcap 0.12xAnnual Revenue
✅ Book Value ₹ 184
🎯Q4 sets New Record:
▫️Revenue came at 467cr vs 420cr _(+12% QoQ)_ vs 411cr _(+14% YoY)_
▫️EBITDA came at 71.2cr vs 33cr _(+90% QoQ)_ vs 35cr _(+456% YoY)_
▫️EBITDA margin at 15.3% vs 7.9% _(+740 bps QoQ)_ vs 8.5% _(+690 bps YoY)_
▫️PAT came at 40.2cr vs 4.57cr _(+780% QoQ)_ vs loss of 1cr YoY
▫️ *Q4 EPS came at 10.1 vs 1.15 _(+780% QoQ)_ vs Negative EPS of 0.66 YoY*
Our earlier Report👇
NAHAR IND ENT:TP Rs 150
Time Frame:18 months
Cheapest Textile Stock
💎Mcap just 11%xFY22E Sales
Capex 2100 Cr for similar capacity new plant
Stock had traded at 170 when Sensex was 1/3rd of current levels
🎯🎯Yarn▶️Fabric➡️Garment⏩⏩Retail
🌈Cotton County Retail Ltd being merged with Nahar Ind Ent
✅ CMP 0.35xBook
✅Tdg @ 1.2xFY22EEbidta
✅ Quoting @ 3.2xFY22EEPS
✅Mcap only 11%xFY22E Revenue
*Excellent Q3FY21*
🚀🚀EBITDA 33cr vs 6cr _(+450% QoQ) vs 21cr _(+57% YoY)_
🚀🚀PAT 5cr vs 20cr Loss QoQ vs 2.7cr _(+85% YoY)_
🚀🚀EPS ₹ 1.13 vs (-5.09) QoQ vs 0.66 _(+85% YoY)_
_*Decent Capacities*_
# 271000 Spindles for Yarn
#7832 Rotors for Yarn
#110 million mtr Fabric capacity
# 13 TPD Yarn dyeing ( big)
#53 MW captive Power Plant
# 2500 TCD Sugar plant
# Total 7 plants
✅Mcap 220 Cr Vs 148 Cr Ebidta ( FY18)
✅Mcap 220 Cr Vs 2000- Cr Revenue
PAST FINANCIALS~
💎FY18- Revenue 1759 Cr, Interest 71 Cr, Depreciation 66 Cr, NP 18 Cr *Ebidta 148 Cr*
💎 FY19-Revenue 1866 Cr, Interest 67 Cr, Depreciation 79 Cr, Profit (22Cr), *Ebidta 118 Cr*
💎 FY20-Revenue 1573 Cr, Interest 65 Cr, Depreciation 71 Cr, Profit (25 Cr) *Ebidta 91 Cr*
FY18 was moderate year. However, performance had declined in subsequent 2 years as globally, yarn/Fabric prices had declined 10-15%
NAHARINDUS has reported only 1 Cr Ebidta in H1FY21 due to lockdown as plants operated at around 25% capacity
🌈 Current Cotton Textile boom can last for next 2 years at least. Stock can make New Lifetime HIGH
PNB: Another positive
PNB holds 37% stake in PNB Housing ( mcap 10600 Cr). Valuation of PNB Housing likely to increase further
It will intrinsic value to PNB
PNB holds 37% stake in PNB Housing ( mcap 10600 Cr). Valuation of PNB Housing likely to increase further
It will intrinsic value to PNB
Buy before Q4FY21 as stock will spurt ( like Nahar Spinning and Nahar ind Enterprise)
➡️Q4 EPS can be Rs 11-12
SAMBANDAM SPG:Dirt Cheap
BSE code 521240
TP Rs 200
🌈Stock tdg @ 2.7xFY22EEPS and mcap 0.9xFY22E ebidta
SAMBANDAM Spinning Mills Ltd has 110000 spindles manufacturing 100% cotton yarn for domestic and export markets
Q3FY21 vs Q3FY20:
Sales 70 Cr Vs 45 Cr
PAT zooms 760% to 3.61 Cr Vs 42 lakh
✅EPS Rs 8.47 Vs 98 paise
Q3FY21 ebidta is 10.25 Cr
🎯Sambandam Spg has 100% captive power generation, resulting in lower power cost. Further, Sambandam is ranked in Top 10 Spinning Mills with highest Productivity
Sambandam Spinning should achieve minimum EPS of Rs 30 for FY22.
Mcap of 35 Cr is lower FY22E Ebidta of 40 Cr
💎New Spinning mill with similar capacity will entail 450 Cr Investment
Smallcap for Big appreciation
Personal due diligence advised. TP subject to mkt conditions
➡️Q4 EPS can be Rs 11-12
SAMBANDAM SPG:Dirt Cheap
BSE code 521240
TP Rs 200
🌈Stock tdg @ 2.7xFY22EEPS and mcap 0.9xFY22E ebidta
SAMBANDAM Spinning Mills Ltd has 110000 spindles manufacturing 100% cotton yarn for domestic and export markets
Q3FY21 vs Q3FY20:
Sales 70 Cr Vs 45 Cr
PAT zooms 760% to 3.61 Cr Vs 42 lakh
✅EPS Rs 8.47 Vs 98 paise
Q3FY21 ebidta is 10.25 Cr
🎯Sambandam Spg has 100% captive power generation, resulting in lower power cost. Further, Sambandam is ranked in Top 10 Spinning Mills with highest Productivity
Sambandam Spinning should achieve minimum EPS of Rs 30 for FY22.
Mcap of 35 Cr is lower FY22E Ebidta of 40 Cr
💎New Spinning mill with similar capacity will entail 450 Cr Investment
Smallcap for Big appreciation
Personal due diligence advised. TP subject to mkt conditions
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Business Standard
Ø Non-banks' NPAs may rise to 4.5-5 per cent by March 2022: Icra
Ø GMR, Adani, Godrej Properties among 9 companies qualified to redevelop the iconic CSMT railway station
Ø Sugar production up 13 pc to 305.68 lakh tonnes during Oct'20 - May'21
Ø Gold traders write to Finance Ministry to increase settlement period of gold metal loan
Ø SBI invites bids from ARCs for two accounts for recovering Rs 409 crore
Ø CIL's coal offtake jumps 38 per cent to 55 million tonnes in May
Ø Second Covid wave threatens India's long-term credit rating, warns Moody's
Ø ITC adjusted PAT rises 6.5% in Q4, declares final dividend of Rs 5.75
Ø Credit losses set to decline for most Asia Pacific banks, says S&P
Ø Sebi permits off market transfers to ease fund relocation to IFSC
Ø Suzlon bags order to develop 252 MW wind power project from CLP India
Ø Sebi bans eight, including 2 company staff, for insider trading in Infosys
Business Line
Mint
Ø SBI’s Ecowrap revises FY22 GDP projection to 7.9% from 10.4%
Ø Without gas transmission pact with GSPL, IGX’s growth is hit: Mediratta
Ø TVS Motor total sales down 30 per cent in May
Ø PNB to write to IRDAI on stake sale plan in Canara HSBC OBC Life, says MD and CEO
Ø Maruti Suzuki sales decline 71 per cent in May over April
Ø Rolex Rings gets SEBI nod to launch IPO
Ø BRICS call for reforming United Nations, IMF, WTO and WHO
Ø OPEC+ set to sign off on July increase as market tightens
Ø Govt waives registration certificate issuance, renewal fee for EVs
Ø Sebi kicks in higher peak margin on day trade from today
Ø Wadhawan moves SC against NCLAT stay against his offer for DHFL
Ø PNB slashes MCLR across select tenors from today
Financial Express
Business World
Ø BSE SME, BSE Startups seek listing of small enterprises in ICT exports; partner with industry body ESC
Ø Revenue from shrimp export to jump 20% in CY21: Crisil
Ø BSE StAR MF Logs Record 1.14 Cr Transactions Worth Rs 30,938 Cr In May
Ø Rupee Falls For 2nd Day, Declines 28 Paise To 72.90 Against Dollar
GM jsk stock in news route,gspl, mtar,lykalab,burnpurcem, Laxmi org, jswsteel,emamipaper,NMDC,jenburkipharma,panacea bio,motherson. Negative stocks eicher,hero,gujgas,infosys. Nifty range 15500-15700.