GHCL( Booming Soda Ash+Home Textile Combo): Technical
Positional Buy GHCL cmp 283 Resistance Zone 280/290 Above that Target ~ 312/360. Stop Loss~258 cl basis
FUNDAMENTALS~ 2nd biggest mfr of Soda Ash. Home Textile exports to USA. Stock trading at 6.4xFY22EEPS. Strong conviction investment Idea. TP Rs 450+
TP subject to mkt conditions. Personal due diligence advised
Positional Buy GHCL cmp 283 Resistance Zone 280/290 Above that Target ~ 312/360. Stop Loss~258 cl basis
FUNDAMENTALS~ 2nd biggest mfr of Soda Ash. Home Textile exports to USA. Stock trading at 6.4xFY22EEPS. Strong conviction investment Idea. TP Rs 450+
TP subject to mkt conditions. Personal due diligence advised
DO READ:
🎯PNB earnings were extremely poor with a Core loss of 1900 cr
▪️High trading gains of ~1000 cr and recovery of 3020 cr from Bhushan Power were the key earnings drivers.
▪️Recovery from Bhushan has been netted off against provisions.
▪️Excluding trading gains, Bhushan recovery and Interest reversal, the bank has made a loss of 1900 cr at the pre-tax level.
➡️Yes, PNB has reported a Core loss of 1900 cr for Q4FY21
🎯PNB earnings were extremely poor with a Core loss of 1900 cr
▪️High trading gains of ~1000 cr and recovery of 3020 cr from Bhushan Power were the key earnings drivers.
▪️Recovery from Bhushan has been netted off against provisions.
▪️Excluding trading gains, Bhushan recovery and Interest reversal, the bank has made a loss of 1900 cr at the pre-tax level.
➡️Yes, PNB has reported a Core loss of 1900 cr for Q4FY21
🎯Burmans a step closer to becoming Promoter. Religare allots 16627077 shares in name of Milky Investments and VIC Enterprises ( Dabur group companies).
TP➡️250/300.
Care Health valuation 15000 Cr. High profile investors participating in Fund raising. After debt restructuring is formally approved and put in place, Mohit Burman ( already major shareholder) can assume Promoter mantle
https://m.economictimes.com/markets/expert-view/we-are-gearing-up-for-religare-2-0-rashmi-saluja/articleshow/83235164.cms
TP➡️250/300.
Care Health valuation 15000 Cr. High profile investors participating in Fund raising. After debt restructuring is formally approved and put in place, Mohit Burman ( already major shareholder) can assume Promoter mantle
https://m.economictimes.com/markets/expert-view/we-are-gearing-up-for-religare-2-0-rashmi-saluja/articleshow/83235164.cms
The Economic Times
We are gearing up for Religare 2.0: Rashmi Saluja
“We are positive that the Religare restructuring process will go through .”
ALERT
RAIN is nearing breakout levels with yearly high closing price. Buy/accumulate for a target of Rs.250.
Disclosure: I own the company's shares.
RAIN is nearing breakout levels with yearly high closing price. Buy/accumulate for a target of Rs.250.
Disclosure: I own the company's shares.
*Brokerage Updates on PNB so far*
Jefferies has UNDERPERFORM rating with TP 33
Kotak has REDUCE rating with TP 36
JP Morgan has UNDERWEIGHT rating with TP 37
Credit Suisse has UNDERPERFORM rating with TP 38
Elara Capital has SELL rating with TP 38
*More downgrades likely*
Jefferies has UNDERPERFORM rating with TP 33
Kotak has REDUCE rating with TP 36
JP Morgan has UNDERWEIGHT rating with TP 37
Credit Suisse has UNDERPERFORM rating with TP 38
Elara Capital has SELL rating with TP 38
*More downgrades likely*
🇮🇳 *RAIN INDUSTRIES*: _*In MSCI smallcap*_
_Buying has already started and following FPCs already buying continuously_
▫️Emerging Markets Small Capitalisation Equity Index
▫️Ishares India SC Mauritius Co
▫️PIMCO Equity Series Pimco Rae Fund Emerging
▫️Emerging Markets Small Capitalisation Equity Index
▫️IShares Core MDCI UCITS ETF
▫️Northern Trust Collective Emerging Markets Small
▫️State Street Global Smallcap Equity Ex-US
▫️College Retirement Equities Fund
▫️Integrated Core Strategies Asia PTE Ltd
_Buying has already started and following FPCs already buying continuously_
▫️Emerging Markets Small Capitalisation Equity Index
▫️Ishares India SC Mauritius Co
▫️PIMCO Equity Series Pimco Rae Fund Emerging
▫️Emerging Markets Small Capitalisation Equity Index
▫️IShares Core MDCI UCITS ETF
▫️Northern Trust Collective Emerging Markets Small
▫️State Street Global Smallcap Equity Ex-US
▫️College Retirement Equities Fund
▫️Integrated Core Strategies Asia PTE Ltd
HIDDEN GEM:
*DO READ: Must portfolio buy*
*Prolife industries: CMP:Target: ₹200 (6 to 12 months)*
Only NSE ( 3000 shares Lot size)
Most undervalued dyes and pigment company
*Company trading at just 5-6 forward PE vs peers trading at PE of 30+😱😵*
✅Company has *doubled capacities* and has started reaping its benefits from H2
✅ Promoter is a technocrat
✅ *Dyes prices have sky rocketed from Q3 onwards (sustainable and not just pent up)*
✅ Outlook for dyes and pigments very bright (high growth sector)
*Fundamentals:*♠️
• Highest half yearly sales for H1: ₹33 Cr
• H1FY21 EPS: ₹6.6🔥 (including Q1 of lockdown😮) vs FULL YEAR FY20 EPS: ₹9.9
• *Q3 and Q4 for dyes and pigments sector has been 🚀🚀. Company can report EPS of even ₹8 for H2*
• FY22 estimated EPS: ₹18 (conservative)
Peers sudarshan chemicals trading at PE of 33 and bodal chemicals trading at PE of 30. Looking at company performance, promoter integrity and capacity expansion, company deserves PE of at least 12 which brings us to a target of 200
*DO READ: Must portfolio buy*
*Prolife industries: CMP:Target: ₹200 (6 to 12 months)*
Only NSE ( 3000 shares Lot size)
Most undervalued dyes and pigment company
*Company trading at just 5-6 forward PE vs peers trading at PE of 30+😱😵*
✅Company has *doubled capacities* and has started reaping its benefits from H2
✅ Promoter is a technocrat
✅ *Dyes prices have sky rocketed from Q3 onwards (sustainable and not just pent up)*
✅ Outlook for dyes and pigments very bright (high growth sector)
*Fundamentals:*♠️
• Highest half yearly sales for H1: ₹33 Cr
• H1FY21 EPS: ₹6.6🔥 (including Q1 of lockdown😮) vs FULL YEAR FY20 EPS: ₹9.9
• *Q3 and Q4 for dyes and pigments sector has been 🚀🚀. Company can report EPS of even ₹8 for H2*
• FY22 estimated EPS: ₹18 (conservative)
Peers sudarshan chemicals trading at PE of 33 and bodal chemicals trading at PE of 30. Looking at company performance, promoter integrity and capacity expansion, company deserves PE of at least 12 which brings us to a target of 200
*Jindal Polyfilms - _BUY TP ₹1575_*
Equity - 44cr
*ROE of more than 35%*
ROCE of 33%
Book Value - ₹ 603
*Conservative FY22 Estimates*
▫️Revenue - 4925cr
▫️PAT - 985cr
▫️EPS - ₹225
*Co is trading at just 3.5x Forward P/E*
*FY21 Highlights*
▪️Revenue - 4082cr
▪️PAT - 791cr
▪️EPS - ₹181
▫️Operating margins have increased sharply to 27% vs 18% (+900 bps YoY)
▫️Co has Reduced Debt significantly during FY21
▫️Co has posted profit growth of 19% CAGR over last 5 years which will improve further, given the demand for its products.
▪️ *Co operates in the booming Packaging Films industry and is the largest player. FY22 and FY23 will be the best ever in cos history.*
▪️ *Co is trading extremely cheap at Forward P/E of just 3.5x even on conservative estimates.*
▪️ *Even if it manages to get a modest P/E of 7, stock price will easily cross _₹1575_ on a conservative basis.*
Equity - 44cr
*ROE of more than 35%*
ROCE of 33%
Book Value - ₹ 603
*Conservative FY22 Estimates*
▫️Revenue - 4925cr
▫️PAT - 985cr
▫️EPS - ₹225
*Co is trading at just 3.5x Forward P/E*
*FY21 Highlights*
▪️Revenue - 4082cr
▪️PAT - 791cr
▪️EPS - ₹181
▫️Operating margins have increased sharply to 27% vs 18% (+900 bps YoY)
▫️Co has Reduced Debt significantly during FY21
▫️Co has posted profit growth of 19% CAGR over last 5 years which will improve further, given the demand for its products.
▪️ *Co operates in the booming Packaging Films industry and is the largest player. FY22 and FY23 will be the best ever in cos history.*
▪️ *Co is trading extremely cheap at Forward P/E of just 3.5x even on conservative estimates.*
▪️ *Even if it manages to get a modest P/E of 7, stock price will easily cross _₹1575_ on a conservative basis.*