*Good Morning*
Asia’s Richest Man to Plow $10 Billion Into Green Energy
Reliance to Finalize Tie-Up With Oil Giant Aramco This Year
Google and Reliance Jio Unveil Budget Phone for Booming India Market
India Again Urges OPEC+ to Boost Oil Supply Amid Price Concern
India Calls for ‘Affordable’ Oil Supplies in Talks With OPEC
India’s Coal-Dominated Fleet Is Tipping Toward Solar: Sparklines
India Probe Agency Files Case Against CG Power, Gautam Thapar
India Cumulative Monsoon Rainfall 26% Above Normal at June 24
Global Funds Sell Net INR28.9B of India Stocks on Thursday: NSE
Domestic funds buy net 11.4b rupees of stocks
Foreign Investors Sell Net INR2.48B of Indian Equities on June 23
Foreigners Sell Net INR56.8B Indian Equity Derivatives Thursday
OPEC+ Weighs Cautious Supply Hike as Market Begs for Barrels
Jaishankar to begin visit to Greece and Italy on Friday: PTI
India desires normal relations with all neighbors including Pakistan, MEA says: PTI
LIC Housing Finance (LICHF): To issue 45.4m shares to LIC of India at INR514.25 each, LIC stake to rise to 45.24% from 40.313%
Lupin Ltd. (LPC): Otsuka Sues Lupin to Block Copies of Jynarque Kidney Treatment
Asia’s Richest Man to Plow $10 Billion Into Green Energy
Reliance to Finalize Tie-Up With Oil Giant Aramco This Year
Google and Reliance Jio Unveil Budget Phone for Booming India Market
India Again Urges OPEC+ to Boost Oil Supply Amid Price Concern
India Calls for ‘Affordable’ Oil Supplies in Talks With OPEC
India’s Coal-Dominated Fleet Is Tipping Toward Solar: Sparklines
India Probe Agency Files Case Against CG Power, Gautam Thapar
India Cumulative Monsoon Rainfall 26% Above Normal at June 24
Global Funds Sell Net INR28.9B of India Stocks on Thursday: NSE
Domestic funds buy net 11.4b rupees of stocks
Foreign Investors Sell Net INR2.48B of Indian Equities on June 23
Foreigners Sell Net INR56.8B Indian Equity Derivatives Thursday
OPEC+ Weighs Cautious Supply Hike as Market Begs for Barrels
Jaishankar to begin visit to Greece and Italy on Friday: PTI
India desires normal relations with all neighbors including Pakistan, MEA says: PTI
LIC Housing Finance (LICHF): To issue 45.4m shares to LIC of India at INR514.25 each, LIC stake to rise to 45.24% from 40.313%
Lupin Ltd. (LPC): Otsuka Sues Lupin to Block Copies of Jynarque Kidney Treatment
*Reliance Industries Plans To Invest Rs 75,000 Crore In New Energy Business*
Having committed to net-zero carbon by 2035, Reliance Industries Ltd. plans to spend Rs 75,000 crore to build an ecosystem to make solar modules and batteries to hydrogen fuel cells in India.
The world is entering a new energy era, which is going to be highly disruptive. The age of fossil fuels, which powered economic growth globally for nearly three centuries, cannot continue much longer,” Mukesh Ambani, chairman and managing director at RIL, said during the 44th annual general meeting of the oil-to-telecom conglomerate on Thursday.
The company has started work on developing the Dhirubhai Ambani Green Energy Giga Complex on 5,000 acres in Jamnagar, Ambani said.
“It will be among the largest such integrated renewable energy manufacturing facilities in the world." Under the plan, it will build four giga-factories to make and integrate all critical components of the new energy ecosystem:
*Solar photovoltaic modules*
-Batteries
-Electrolyser
-Fuel
-cells.
To create this renewables energy eco-system, Reliance targets to spend Rs 60,000 crore in next three years. Separately, it also plans to invest Rs 15,000 crore on value-chain partnerships and future technologies.
RIL, Tata Consultancy Services Ltd. and HDFC Bank Ltd. are among Indian businesses that have announced net-zero goals. That comes as companies globally switch to sustainable investments and seek suppliers with similar commitments to curb greenhouse emissions.
*Other Highlights From RIL's New Business Plan*
To enable at least 100 gigawatt of solar energy by 2030.
To build two additional divisions to strengthen this ecosystem—a dedicated Renewable Energy Project Management and Construction Division, and a dedicated Renewable Energy Project Finance Division.
Invest in carbon fibre plant for supporting our hydrogen and solar ecosystems.
To use solar energy to decarbonise O2C business.
To use green hydrogen—generated from renewable sources—and CO2 as raw materials to develop a road map for new green chemicals, green fertiliser and e-fuels.
To transform legacy business to net-zero carbon operations.
Having committed to net-zero carbon by 2035, Reliance Industries Ltd. plans to spend Rs 75,000 crore to build an ecosystem to make solar modules and batteries to hydrogen fuel cells in India.
The world is entering a new energy era, which is going to be highly disruptive. The age of fossil fuels, which powered economic growth globally for nearly three centuries, cannot continue much longer,” Mukesh Ambani, chairman and managing director at RIL, said during the 44th annual general meeting of the oil-to-telecom conglomerate on Thursday.
The company has started work on developing the Dhirubhai Ambani Green Energy Giga Complex on 5,000 acres in Jamnagar, Ambani said.
“It will be among the largest such integrated renewable energy manufacturing facilities in the world." Under the plan, it will build four giga-factories to make and integrate all critical components of the new energy ecosystem:
*Solar photovoltaic modules*
-Batteries
-Electrolyser
-Fuel
-cells.
To create this renewables energy eco-system, Reliance targets to spend Rs 60,000 crore in next three years. Separately, it also plans to invest Rs 15,000 crore on value-chain partnerships and future technologies.
RIL, Tata Consultancy Services Ltd. and HDFC Bank Ltd. are among Indian businesses that have announced net-zero goals. That comes as companies globally switch to sustainable investments and seek suppliers with similar commitments to curb greenhouse emissions.
*Other Highlights From RIL's New Business Plan*
To enable at least 100 gigawatt of solar energy by 2030.
To build two additional divisions to strengthen this ecosystem—a dedicated Renewable Energy Project Management and Construction Division, and a dedicated Renewable Energy Project Finance Division.
Invest in carbon fibre plant for supporting our hydrogen and solar ecosystems.
To use solar energy to decarbonise O2C business.
To use green hydrogen—generated from renewable sources—and CO2 as raw materials to develop a road map for new green chemicals, green fertiliser and e-fuels.
To transform legacy business to net-zero carbon operations.
World Markets
Dow + 323
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Nikkei + 144
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Sgxnifty + 6 (15845)
Brent Crude 75.83
Dow Fut + 125
Dollar Index 91.8
Dow + 323
Nasdaq + 98
Dax + 133
Nikkei + 144
Hangseng + 134
Sgxnifty + 6 (15845)
Brent Crude 75.83
Dow Fut + 125
Dollar Index 91.8
Stupendous Q4:Rana Sugar
TP ₹ 45-50
1️⃣Q4FY21 ATH Financials~Revenue 513 Cr NP 73 Cr EPS ₹ 4.77
2️⃣FY22EEPS ₹ 8
3️⃣Only Sugar co in Cattle Feed also
Distillery Division selling Liquor under own Brand
✅16500 TCD Sugar
✅ 500 TCD Sugar beet
✅ 120 MW power
✅ 60 KLPD Distillery
4️⃣Annual revenue 1222 Cr
Possible 50 in 6 months subject to mkt conditions
TP ₹ 45-50
1️⃣Q4FY21 ATH Financials~Revenue 513 Cr NP 73 Cr EPS ₹ 4.77
2️⃣FY22EEPS ₹ 8
3️⃣Only Sugar co in Cattle Feed also
Distillery Division selling Liquor under own Brand
✅16500 TCD Sugar
✅ 500 TCD Sugar beet
✅ 120 MW power
✅ 60 KLPD Distillery
4️⃣Annual revenue 1222 Cr
Possible 50 in 6 months subject to mkt conditions
Possible 3x:SIMRAN FARMS
Time Frame: 24 Months
➡️Mini Venky's in making
👇
Simran farms Ltd: TP 300(1 year)
▶️Mcap just 20% of Annual Sales
▶️2nd Biggest Listed Poultry company
▶️Even if Simran get PERatio of just 5, stock can be 300 (1 year)
➡️ International chains like McDonald KFC Burger King expanding at frantic pace. It means Demand for poultry from organized segment will keep on growing. This smallcap can be held in investment portfolio and not trading
Poultry industry doing exceedingly well as evident from Q4 of Venky which has reported NP of 107 Cs Vs Loss of 97 Cr. Means Simran should also report blockbuster Q4. Due to rising demand for non-veg and expanding QSRs, poultry industry and company like SIMRAN has bright prospects
✅ Glance at Venky’s Q4FY21 (YoY comparison as QoQ not suitable for seasonal products):
*Q4FY21* *Q4FY20*
Revenue 941 661
EBITDA 111🚀 (118)
PBT 107🔥 (97)
✅Looking at above, Simran farms Q4 EPS can be easily ₹20-25 (as there should be tax write back as well due to carry forward losses)
Thus, *FY20EEPS: ₹70-75*🔥🔥
*Share trading at just 1.9 PE*😮😮
Time Frame: 24 Months
➡️Mini Venky's in making
👇
Simran farms Ltd: TP 300(1 year)
▶️Mcap just 20% of Annual Sales
▶️2nd Biggest Listed Poultry company
▶️Even if Simran get PERatio of just 5, stock can be 300 (1 year)
➡️ International chains like McDonald KFC Burger King expanding at frantic pace. It means Demand for poultry from organized segment will keep on growing. This smallcap can be held in investment portfolio and not trading
Poultry industry doing exceedingly well as evident from Q4 of Venky which has reported NP of 107 Cs Vs Loss of 97 Cr. Means Simran should also report blockbuster Q4. Due to rising demand for non-veg and expanding QSRs, poultry industry and company like SIMRAN has bright prospects
✅ Glance at Venky’s Q4FY21 (YoY comparison as QoQ not suitable for seasonal products):
*Q4FY21* *Q4FY20*
Revenue 941 661
EBITDA 111🚀 (118)
PBT 107🔥 (97)
✅Looking at above, Simran farms Q4 EPS can be easily ₹20-25 (as there should be tax write back as well due to carry forward losses)
Thus, *FY20EEPS: ₹70-75*🔥🔥
*Share trading at just 1.9 PE*😮😮
Dhunseri Ventures Ltd: Curtain Raiser ( Part 2)
Will Repent not buying this 💎
✅Super Conviction. Do not miss
🎯FY21 EPS ₹ 66 ( Sixty Six)
🎯Book Value ₹ 458
Full report on 1️⃣Multi location ( Indian and overseas) manufacturing facilities
👇
IDPIL, their petrochemical joint venture manufactures the finest bottle grade PET resin, for packaging of drinking water, carbonated soft drinks, edible oil, pharmaceuticals and many more. IDPIL has two PET resin plants in Haldia (port town in West Bengal) with an⏩⏩ _*effective capacity of 480000 TPA and one plant in Panipat (Haryana) with an effective capacity of 216000 TPA.*_ Massive
Further, the company had entered into a 50:50 joint venture with Indorama Ventures Public Company Ltd. (IVL), a global chemical producer to restart its IVL Dhunseri Polyester Company S.A.E. (Formerly Egyptian Indian Polyester Company S.A.E.) PET facility located in Ain Sokhna free trade zone, North West of the Gulf of Suez in ▶️▶️▶️Egypt with a manufacturing capacity of 540000 TPA
2️⃣Huge land bank, 3️⃣Big treasury portfolio of well known companies ( nearly 2000 Cr) and 4️⃣Equity Stake in group companies will be released on Wednesday
For Exceptional appreciation, Exceptional Re(al)search. No copy paste, no copycat
Will Repent not buying this 💎
✅Super Conviction. Do not miss
🎯FY21 EPS ₹ 66 ( Sixty Six)
🎯Book Value ₹ 458
Full report on 1️⃣Multi location ( Indian and overseas) manufacturing facilities
👇
IDPIL, their petrochemical joint venture manufactures the finest bottle grade PET resin, for packaging of drinking water, carbonated soft drinks, edible oil, pharmaceuticals and many more. IDPIL has two PET resin plants in Haldia (port town in West Bengal) with an⏩⏩ _*effective capacity of 480000 TPA and one plant in Panipat (Haryana) with an effective capacity of 216000 TPA.*_ Massive
Further, the company had entered into a 50:50 joint venture with Indorama Ventures Public Company Ltd. (IVL), a global chemical producer to restart its IVL Dhunseri Polyester Company S.A.E. (Formerly Egyptian Indian Polyester Company S.A.E.) PET facility located in Ain Sokhna free trade zone, North West of the Gulf of Suez in ▶️▶️▶️Egypt with a manufacturing capacity of 540000 TPA
2️⃣Huge land bank, 3️⃣Big treasury portfolio of well known companies ( nearly 2000 Cr) and 4️⃣Equity Stake in group companies will be released on Wednesday
For Exceptional appreciation, Exceptional Re(al)search. No copy paste, no copycat
PBM Polytex Ltd - Set for a Stellar Performance
Tiny Market cap of just 60cr
Book Value 149
Trading at just 0.59x P/B
Debt Free Company
1️⃣Q4FY21 Estimates
▪️Q4 Revenue at 54cr
▪️Q4 PAT at 2.8cr
▪️Q4 EPS at 4.1
2️⃣FY22 estimates suggest huge undervaluation
▫️Revenues at 210cr
▫️PAT estimated at 10.5cr
▫️FY22E EPS of 15.5
✅Trading very cheap at just 5.5x Forward P/E
3️⃣▫️Manufacturer of High Quality & Finest 100% Cotton Yarn
▫️Substantial quantity of yarn is being exported by the Company to various countries
🎯▫️ Co has 80000 Spindles. Replacement cost comes to 320cr, while mkt cap is just 60cr
▫️Co also owns 4 Windmills
▫️ *Co has made a big turnaround in Q3FY21 reporting EPS of 2.51* after few tepid quarters
▫️Co is set to report Stellar numbers for Q4FY21 on the back of the boom in cotton yarn.
▫️ Higher realisations will improve margins further.
4️⃣ Co has become Debt Free and set to reap the rewards now.
🚀 Given the estimates and a modest P/E of 9x, stocks deserves to be 140
**Above TP is subject to market conditions. Personal due diligence advised.
Tiny Market cap of just 60cr
Book Value 149
Trading at just 0.59x P/B
Debt Free Company
1️⃣Q4FY21 Estimates
▪️Q4 Revenue at 54cr
▪️Q4 PAT at 2.8cr
▪️Q4 EPS at 4.1
2️⃣FY22 estimates suggest huge undervaluation
▫️Revenues at 210cr
▫️PAT estimated at 10.5cr
▫️FY22E EPS of 15.5
✅Trading very cheap at just 5.5x Forward P/E
3️⃣▫️Manufacturer of High Quality & Finest 100% Cotton Yarn
▫️Substantial quantity of yarn is being exported by the Company to various countries
🎯▫️ Co has 80000 Spindles. Replacement cost comes to 320cr, while mkt cap is just 60cr
▫️Co also owns 4 Windmills
▫️ *Co has made a big turnaround in Q3FY21 reporting EPS of 2.51* after few tepid quarters
▫️Co is set to report Stellar numbers for Q4FY21 on the back of the boom in cotton yarn.
▫️ Higher realisations will improve margins further.
4️⃣ Co has become Debt Free and set to reap the rewards now.
🚀 Given the estimates and a modest P/E of 9x, stocks deserves to be 140
**Above TP is subject to market conditions. Personal due diligence advised.
*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_
La Tim Metal - BUY for TP 225
✅Q3 EPS was 11.62. Q4FY21 EEPS 14-16
✅After JSW, 2nd biggest player in Coloured Galvanized Coils & Profiles
Our previous article👇
Co trading at Forward P/S of just 0.17x
*Trading extremely Cheap at Forward P/E of just 3.5x*
Tiny Market Cap of Just 90 cr
Book Value - 192
P/B - 0.52
*La Tim has huge land bank of 100 acres in Industrial zone in Khopoli*
*Co has already posted Record Sales & Record Profits in Q3FY21*
▪️Q3 Revenues at 153cr, PAT at 10cr, EPS of ₹ 11.62
*Q4FY21 to be even Better*
▫️We estimates Q4FY21E EPS to be ₹ 14
*FY22 Estimates - BEST EVER PERFORMANCE*
▫️Revenues estimated to be 525 cr (Highest Ever)
▫️PAT estimated at 24 cr
▫️EPS estimated to be ₹ 28
▫️Co manufactures Pre-painted/Colour coated Galvalume & Galvanized Coils & Profiles in multiple thickness, size & colour.
▫️ *The products are import substitution in line with 'Make in India'*
*Huge Expansion Plans*
▫️La Tim is developing 20 acres industrial park at Khopoli & 72 acres industrial park near Dighi Port
▫️Co is also planning to setup new plants at Vishakhapatnam & Nagpur
▫️La Tim group also has interest in Steel manufacturing, Real Estate, Hotels, Resorts & Restaurants, Township Development etc.
✅Q3 EPS was 11.62. Q4FY21 EEPS 14-16
✅After JSW, 2nd biggest player in Coloured Galvanized Coils & Profiles
Our previous article👇
Co trading at Forward P/S of just 0.17x
*Trading extremely Cheap at Forward P/E of just 3.5x*
Tiny Market Cap of Just 90 cr
Book Value - 192
P/B - 0.52
*La Tim has huge land bank of 100 acres in Industrial zone in Khopoli*
*Co has already posted Record Sales & Record Profits in Q3FY21*
▪️Q3 Revenues at 153cr, PAT at 10cr, EPS of ₹ 11.62
*Q4FY21 to be even Better*
▫️We estimates Q4FY21E EPS to be ₹ 14
*FY22 Estimates - BEST EVER PERFORMANCE*
▫️Revenues estimated to be 525 cr (Highest Ever)
▫️PAT estimated at 24 cr
▫️EPS estimated to be ₹ 28
▫️Co manufactures Pre-painted/Colour coated Galvalume & Galvanized Coils & Profiles in multiple thickness, size & colour.
▫️ *The products are import substitution in line with 'Make in India'*
*Huge Expansion Plans*
▫️La Tim is developing 20 acres industrial park at Khopoli & 72 acres industrial park near Dighi Port
▫️Co is also planning to setup new plants at Vishakhapatnam & Nagpur
▫️La Tim group also has interest in Steel manufacturing, Real Estate, Hotels, Resorts & Restaurants, Township Development etc.
Scan Steels Ltd - BUY for TP 70
Equity - 52cr
P/B - 0.60x
▫️ *Fully integrated steel manufacturing company*
▫️Diversified into TMT manufacturing, DRI, Structures, Billets, Roofing Sheets and Power
▫️ *Renowned name in the Iron & Steel Industry in India*
▫️Manufactures TMT rods under the brand name of SHRISHTII TMT
1️⃣ *Best Ever FY22 & FY23 coming*
▪️FY22 Revenue estimated to be 875cr
▪️FY22 PAT at 88cr
▪️FY22E EPS at 17rs
*Trading at just 2x Forward P/E*
2️⃣Quarterly Record Sales & Record Profits:
▫️Q4FY21 Revenue at 240cr
▫️Q4FY21 PAT at 24cr and EPS of 4.5cr
*Tiny Market cap - 180cr*
*Co has reported 24cr PAT in just one quarter (Annualized PAT at 96cr) and market cap is just 160cr*
Equity - 52cr
P/B - 0.60x
▫️ *Fully integrated steel manufacturing company*
▫️Diversified into TMT manufacturing, DRI, Structures, Billets, Roofing Sheets and Power
▫️ *Renowned name in the Iron & Steel Industry in India*
▫️Manufactures TMT rods under the brand name of SHRISHTII TMT
1️⃣ *Best Ever FY22 & FY23 coming*
▪️FY22 Revenue estimated to be 875cr
▪️FY22 PAT at 88cr
▪️FY22E EPS at 17rs
*Trading at just 2x Forward P/E*
2️⃣Quarterly Record Sales & Record Profits:
▫️Q4FY21 Revenue at 240cr
▫️Q4FY21 PAT at 24cr and EPS of 4.5cr
*Tiny Market cap - 180cr*
*Co has reported 24cr PAT in just one quarter (Annualized PAT at 96cr) and market cap is just 160cr*
*Globus Spirits Ltd* 🍻
▶️Largest grain based Extra Neutral Alcohol (ENA) manufacturer in India
▶️Highest Ebidta margin in liquor industry
▶️Lowest Valuation in peer group
▶️TP 1000 coming soon. Possible 1500 in 18 months
Caters to 4 important segments of the alcohol industry
▫️IMIL▫️IMFL▫️IMFL Bottling▫️Bulk Alcohol
▪️Total capacity 160mn Bulk Litres of alcohol
▪️ *140 KLPD of capacity to be added at WB. The total capacity at WB will stand at ~280 KLDP post this expansion*
▫️Capacity Utilization at 99.4% in Q4FY21 vs 88.8% in Q4FY20
▫️Aggregate value segment realizations at Rs. 419 per case in Q4FY21 vs Rs. 373 per case in Q4FY20
▫️Average realization for bulk alcohol increased to Rs. 54.2 per litre in Q4FY21 from Rs. 51.4 per litre in Q4FY20
▫️Value Segment Sale Volumes in FY21 stood at 12.3mn cases vs 11mn cases in FY20
▫️FY21 Realizations at 427 vs 377 in FY20
*Premium Brands*
▫️Governor’s Reserve - Semi-premium whisky segment Segment is about 20m cases
▫️Oakton - Premium whisky segment Segment is about 8.5m cases
▫️L’Affaire Napoleon 3 years Brandy - Premium brandy segment Segment is about 0.5m cases
*_Globus Spirits trades at a forward P/E of just 6.05x and co is bound to get a P/E of 15 which means 150% appreciation possible which implies a TP of 1000 in medium term._*
▶️Largest grain based Extra Neutral Alcohol (ENA) manufacturer in India
▶️Highest Ebidta margin in liquor industry
▶️Lowest Valuation in peer group
▶️TP 1000 coming soon. Possible 1500 in 18 months
Caters to 4 important segments of the alcohol industry
▫️IMIL▫️IMFL▫️IMFL Bottling▫️Bulk Alcohol
▪️Total capacity 160mn Bulk Litres of alcohol
▪️ *140 KLPD of capacity to be added at WB. The total capacity at WB will stand at ~280 KLDP post this expansion*
▫️Capacity Utilization at 99.4% in Q4FY21 vs 88.8% in Q4FY20
▫️Aggregate value segment realizations at Rs. 419 per case in Q4FY21 vs Rs. 373 per case in Q4FY20
▫️Average realization for bulk alcohol increased to Rs. 54.2 per litre in Q4FY21 from Rs. 51.4 per litre in Q4FY20
▫️Value Segment Sale Volumes in FY21 stood at 12.3mn cases vs 11mn cases in FY20
▫️FY21 Realizations at 427 vs 377 in FY20
*Premium Brands*
▫️Governor’s Reserve - Semi-premium whisky segment Segment is about 20m cases
▫️Oakton - Premium whisky segment Segment is about 8.5m cases
▫️L’Affaire Napoleon 3 years Brandy - Premium brandy segment Segment is about 0.5m cases
*_Globus Spirits trades at a forward P/E of just 6.05x and co is bound to get a P/E of 15 which means 150% appreciation possible which implies a TP of 1000 in medium term._*
*Polyspin Exports Ltd - _BUY TP 155_*
_Bright Prospects & Ever increasing Demand_
▫️FY22E EPS estimated at 14 (Conservative)
▫️ *Trading at just 5.5x FY22E EPS*
▫️ *Co has already posted record Sales and Profits in Q2 and Q3*
*Huge Expansion/New Product Line in Progress*
▪️Started production of viscose blended yarn in OE spinning unit
▪️Paper bags manufacturing units to be used for supply of multilayer paper bags for cement packing leading cement manufacturers in India as well as to other units for packing of chemicals, granules, other food products, etc.
▪️ *This new Product line will lead to a Topline growth of atleast 30% from current FY. This will lead to disproportionately higher Profits in coming quarters.*
▪️ *_Better product mix will lead to Significant Expansion of Operating Margins_*
*Operates in 3 major verticals*
▫️FIBC bags ▫️Textile OE yarn ▫️Paper bags
💡 *Ever increasing demand for products will Enhance Sales & Profitability*
💡 *Now LDPE prices (Raw Material) are significantly lower which will enhance Margins and Profits further*
🔹Integrated manufacturer of FIBC Bags
🔹Co has Long experience in both export & domestic market
🔹Reputed brand image in Europe
🔹Strategically placed near sea port TUTICORIN
🔹Manufactures high quality yarn with imported automatic OE Machines, hence fetches better price in the market.
▫️FIBC bags are used in numerous applications like chemical, pharmaceutical, food industries etc
▫️ *Demand for FIBC is increasing constantly at a faster pace*
*Diverse Portfolio of Products*
▪️ Baffle bags / Q bags ▪️ Tubular coated bags ▪️ Asbestos plate bags ▪️ Normal u-panel bags ▪️ Container bags ▪️ Full discharge bags ▪️ One/Two loop bags ▪️ Single/Double/Triple sift-proof bags ▪️ UN certified bags ▪️ Under sling bags ▪️ Circular bulk bags
*_At current valuations Polyspin is trading extremely cheap. Even if it gets a modest P/E of 11, stock bound to reach 155 conservatively._*
*Prospects for FIBC looks promising with rising demand and New Multilayer Paper Bag segment will further add to the Valuations. We advise a Strong BUY.*
_Bright Prospects & Ever increasing Demand_
▫️FY22E EPS estimated at 14 (Conservative)
▫️ *Trading at just 5.5x FY22E EPS*
▫️ *Co has already posted record Sales and Profits in Q2 and Q3*
*Huge Expansion/New Product Line in Progress*
▪️Started production of viscose blended yarn in OE spinning unit
▪️Paper bags manufacturing units to be used for supply of multilayer paper bags for cement packing leading cement manufacturers in India as well as to other units for packing of chemicals, granules, other food products, etc.
▪️ *This new Product line will lead to a Topline growth of atleast 30% from current FY. This will lead to disproportionately higher Profits in coming quarters.*
▪️ *_Better product mix will lead to Significant Expansion of Operating Margins_*
*Operates in 3 major verticals*
▫️FIBC bags ▫️Textile OE yarn ▫️Paper bags
💡 *Ever increasing demand for products will Enhance Sales & Profitability*
💡 *Now LDPE prices (Raw Material) are significantly lower which will enhance Margins and Profits further*
🔹Integrated manufacturer of FIBC Bags
🔹Co has Long experience in both export & domestic market
🔹Reputed brand image in Europe
🔹Strategically placed near sea port TUTICORIN
🔹Manufactures high quality yarn with imported automatic OE Machines, hence fetches better price in the market.
▫️FIBC bags are used in numerous applications like chemical, pharmaceutical, food industries etc
▫️ *Demand for FIBC is increasing constantly at a faster pace*
*Diverse Portfolio of Products*
▪️ Baffle bags / Q bags ▪️ Tubular coated bags ▪️ Asbestos plate bags ▪️ Normal u-panel bags ▪️ Container bags ▪️ Full discharge bags ▪️ One/Two loop bags ▪️ Single/Double/Triple sift-proof bags ▪️ UN certified bags ▪️ Under sling bags ▪️ Circular bulk bags
*_At current valuations Polyspin is trading extremely cheap. Even if it gets a modest P/E of 11, stock bound to reach 155 conservatively._*
*Prospects for FIBC looks promising with rising demand and New Multilayer Paper Bag segment will further add to the Valuations. We advise a Strong BUY.*
🔹 *STOCKS TO WATCH:*
ASHOK LEYLAND, MISHRA DHATU, LIC HOUSING, NATH BIO-GENES, PTC INDIA, ONGC, CG POWER, PRECISION WIRES
Ashok Leyland: Q4 Sl Net Profit 2.41b Rupees Vs Loss 573m (YoY); Est Profit 1.9b | Loss 194m (QoQ) || Q4 Revenue 70b Rupees Vs 38.38b (YoY) || Co Has Recommended A Dividend Of Rupees 0.60 Per Equity Share
Mishra Dhatu Nigam: Q4 Cons Net Profit 747.1m Rupees Vs 401m (YoY) | 601m (QoQ) || Q4 Revenue 3.46b Rupees Vs 2.04b (YoY) || Co Has Recommended Final Dividend Of Rupees 1.58 Per Equity Share
LIC Housing Finance: Co To Issue Shares To LIC At Price Rupees 514.25/Share
Nath Bio-Genes (India): Q4 Sl Net Profit 71.4m Rupees Vs 76.3m (YoY) | Est 42m (QoQ) || Q4 Revenue 550.2m Rupees Vs 601.5m (YoY)
PTC India: Q4 Cons Net Profit 685.6m Rupees Vs 455m (YoY); Est 750m | 1.07b (QoQ) || Q4 Revenue 39.17b Rupees Vs 36.35b (YoY) || Co Recommended A Final Dividend Of 5.50 Rupees/Share
ONGC: Q4 SL Net Profit 67.33b Rupees Vs Loss 32.14b (YoY) | 12.58b (QoQ) || Q4 Revenue 212b Rupees Vs 215b (YoY) || Declared Dividend Of Rupees 1.85/Share
CG Power: CBI Files Case Against Cg Power, Gautam Thapar, Others || CBI Case For Causing Alleged Loss Of Rupees 24.4b To SBI
Precision Wires India: Co Says Due To Second Wave Of Covid-19 There Is Very Significant Impact On Operations From Apr-To Date || Co Says Production/Sales Significantly Lower During Qtr. By About One Third Of Average Of Previous Quarter
🔹 *Earnings Today:*
Balmer Lawrie, Bharat Wire, Finolex Industries, Godfrey Phillip, IGL, India Glycols, Inox Wind, JSW Energy, NCL Industries, PNC Infra, Railtel, Taj GVK, Texmo Pipes, Voltamp Trans
🔹 *Stocks Ban In F&O:*
NIL
ASHOK LEYLAND, MISHRA DHATU, LIC HOUSING, NATH BIO-GENES, PTC INDIA, ONGC, CG POWER, PRECISION WIRES
Ashok Leyland: Q4 Sl Net Profit 2.41b Rupees Vs Loss 573m (YoY); Est Profit 1.9b | Loss 194m (QoQ) || Q4 Revenue 70b Rupees Vs 38.38b (YoY) || Co Has Recommended A Dividend Of Rupees 0.60 Per Equity Share
Mishra Dhatu Nigam: Q4 Cons Net Profit 747.1m Rupees Vs 401m (YoY) | 601m (QoQ) || Q4 Revenue 3.46b Rupees Vs 2.04b (YoY) || Co Has Recommended Final Dividend Of Rupees 1.58 Per Equity Share
LIC Housing Finance: Co To Issue Shares To LIC At Price Rupees 514.25/Share
Nath Bio-Genes (India): Q4 Sl Net Profit 71.4m Rupees Vs 76.3m (YoY) | Est 42m (QoQ) || Q4 Revenue 550.2m Rupees Vs 601.5m (YoY)
PTC India: Q4 Cons Net Profit 685.6m Rupees Vs 455m (YoY); Est 750m | 1.07b (QoQ) || Q4 Revenue 39.17b Rupees Vs 36.35b (YoY) || Co Recommended A Final Dividend Of 5.50 Rupees/Share
ONGC: Q4 SL Net Profit 67.33b Rupees Vs Loss 32.14b (YoY) | 12.58b (QoQ) || Q4 Revenue 212b Rupees Vs 215b (YoY) || Declared Dividend Of Rupees 1.85/Share
CG Power: CBI Files Case Against Cg Power, Gautam Thapar, Others || CBI Case For Causing Alleged Loss Of Rupees 24.4b To SBI
Precision Wires India: Co Says Due To Second Wave Of Covid-19 There Is Very Significant Impact On Operations From Apr-To Date || Co Says Production/Sales Significantly Lower During Qtr. By About One Third Of Average Of Previous Quarter
🔹 *Earnings Today:*
Balmer Lawrie, Bharat Wire, Finolex Industries, Godfrey Phillip, IGL, India Glycols, Inox Wind, JSW Energy, NCL Industries, PNC Infra, Railtel, Taj GVK, Texmo Pipes, Voltamp Trans
🔹 *Stocks Ban In F&O:*
NIL
BODAL CHEMICALS: Q4 CONS NET PROFIT 235.7M RUPEES VS 229M (YOY) | 265M (QOQ) || Q4 REVENUE 4.33B RUPEES VS 3.88B (YOY)
PTC INDIA: Q4 CONS NET PROFIT 685.6M RUPEES VS 455M (YOY); EST 750M | 1.07B (QOQ) || Q4 REVENUE 39.17B RUPEES VS 36.35B (YOY)
WEST COAST PAPER MILLS LTD: Q4 EBITDA RUPEES 2.2B VS 2.5B (YOY); 1.32B (QOQ) || Q4 EBITDA MARGIN 24.2% VS 34.07% (YOY); 22.95% (QOQ)
*Stocks in News*
Bodal Chemicals: The company reported consolidated profit at Rs 21.73 crore in Q4FY21 against Rs 25.84 crore in Q4FY20, revenue rose to Rs 432.73 crore from Rs 368.47 crore YoY.
Asian Granito India: Crystal Ceramics Industries, a material subsidiary of Asian Granito India, has completed 12000 SQMTS/days of glazed vitrified tiles brown field capacity expansion at its Meshana Plant. This capacity addition will increase total capacity of Crystal Ceramics to 36,000 SQMTS/day (square meters per day).
Majesco: Promoter Aurum Platz IT Pvt Ltd acquired 14.31% stake in the company via off market transaction, taking total shareholding to 34.57% from 20.26% earlier.
Pritika Auto Industries: Tano Investment Opportunities Fund acquired 2.78% stake in the company via open market transaction, raising shareholding to 9.68% from 6.9% earlier.
PTC India: The company reported higher consolidated profit at Rs 49.77 crore in Q4FY21 against Rs 47.96 crore in Q4FY20, revenue rose to Rs 3,916.58 crore from Rs 3,634.52 crore YoY.
Indian Bank: The bank raised Rs 1,650 crore via qualified institutional placement (QIP) and set issue price for QIP at Rs 142.15 per share
Bodal Chemicals: The company reported consolidated profit at Rs 21.73 crore in Q4FY21 against Rs 25.84 crore in Q4FY20, revenue rose to Rs 432.73 crore from Rs 368.47 crore YoY.
Asian Granito India: Crystal Ceramics Industries, a material subsidiary of Asian Granito India, has completed 12000 SQMTS/days of glazed vitrified tiles brown field capacity expansion at its Meshana Plant. This capacity addition will increase total capacity of Crystal Ceramics to 36,000 SQMTS/day (square meters per day).
Majesco: Promoter Aurum Platz IT Pvt Ltd acquired 14.31% stake in the company via off market transaction, taking total shareholding to 34.57% from 20.26% earlier.
Pritika Auto Industries: Tano Investment Opportunities Fund acquired 2.78% stake in the company via open market transaction, raising shareholding to 9.68% from 6.9% earlier.
PTC India: The company reported higher consolidated profit at Rs 49.77 crore in Q4FY21 against Rs 47.96 crore in Q4FY20, revenue rose to Rs 3,916.58 crore from Rs 3,634.52 crore YoY.
Indian Bank: The bank raised Rs 1,650 crore via qualified institutional placement (QIP) and set issue price for QIP at Rs 142.15 per share
Pledge Share Details
Emami: Promoters (Sneha Enclave and Sneha Gardens) revoked pledge of 20 lakh shares between June 21-23.
JSW Energy: Promoters (Indusglobe Multiventures and JSW Investments) revoked pledge of 2.36 crore shares between June 21-23. As reported on June 24
Emami: Promoters (Sneha Enclave and Sneha Gardens) revoked pledge of 20 lakh shares between June 21-23.
JSW Energy: Promoters (Indusglobe Multiventures and JSW Investments) revoked pledge of 2.36 crore shares between June 21-23. As reported on June 24
Stocks To Watch
LIC Housing Finance: To issue 4.54 crore shares at Rs 514.25 each to Life Insurance Corporation of India on a private placement basis. LIC’s shareholding in the company after the proposed preferential allotment of shares will increase to 45.24% from 40.31%.
Indian Bank: Approved the closure of QIP on June 24 and set issue price at Rs 142.15 per share. Received application forms for an amount aggregating to Rs 1,650 crore from eligible Qualified Institutional Buyers.
Union Bank of India: Allotted Basel Ill Compliant Tier II Bonds of face value of Rs 10 lakh each aggregating to Rs 850 crore on private placement basis. The coupon rate has been set at 7.19% per annum for a period of 10 years.
Laurus Labs: CARE Ratings has upgraded the credit rating of the long-term banking facilities of the company to AA/Stable from AA-/Positive.
Aarti Industries: Authorised the opening of QIP on June 24. The floor price of Rs 899.77 per share is at a premium of 3.21% to Thursday’s closing price. Board to meet on June 30 to approve the issue price for equity shares to be allotted to the qualified institutional buyers.
PTC India: Approved a Letter of Intent dated June 17, for acquisition of the energy consulting business undertaking of IL&FS Energy Development Company, a group company of IL&FS, for an undisclosed value, on a slump sale basis.
Asian Granito India: Crystal Ceramics Industries, a material subsidiary of the company, has invested Rs 25 crore for capacity expansion at its Mehsana Plant in Gujarat. This capacity addition will increase total capacity of Crystal Ceramics
to 36,000 SQMTS/day. Earnings: JSW Energy, Hindustan Copper, Indraprastha Gas, Balmer Lawrie & Co, Banco Products (India), Oswal Greentech, Finolex Industries, Forbes & Company, Godfrey Phillips India, HCL Infosystems, Orient Refractories, PNC Infratech, Apex Frozen Foods, Antony Waste Handling Cell, Hexa Tradex, India Glycols, Ind-Swift Laboratories, Inox Wind, KCP, Maharashtra Seamless, MSTC, NCL Industries, Pix Transmissions, Puravankara, Shree Renuka Sugars, State Trading Corporation Of India, Tajgvk Hotels & Resorts, Technocraft Industries (India), United Drilling Tools, Voltamp Transformers
LIC Housing Finance: To issue 4.54 crore shares at Rs 514.25 each to Life Insurance Corporation of India on a private placement basis. LIC’s shareholding in the company after the proposed preferential allotment of shares will increase to 45.24% from 40.31%.
Indian Bank: Approved the closure of QIP on June 24 and set issue price at Rs 142.15 per share. Received application forms for an amount aggregating to Rs 1,650 crore from eligible Qualified Institutional Buyers.
Union Bank of India: Allotted Basel Ill Compliant Tier II Bonds of face value of Rs 10 lakh each aggregating to Rs 850 crore on private placement basis. The coupon rate has been set at 7.19% per annum for a period of 10 years.
Laurus Labs: CARE Ratings has upgraded the credit rating of the long-term banking facilities of the company to AA/Stable from AA-/Positive.
Aarti Industries: Authorised the opening of QIP on June 24. The floor price of Rs 899.77 per share is at a premium of 3.21% to Thursday’s closing price. Board to meet on June 30 to approve the issue price for equity shares to be allotted to the qualified institutional buyers.
PTC India: Approved a Letter of Intent dated June 17, for acquisition of the energy consulting business undertaking of IL&FS Energy Development Company, a group company of IL&FS, for an undisclosed value, on a slump sale basis.
Asian Granito India: Crystal Ceramics Industries, a material subsidiary of the company, has invested Rs 25 crore for capacity expansion at its Mehsana Plant in Gujarat. This capacity addition will increase total capacity of Crystal Ceramics
to 36,000 SQMTS/day. Earnings: JSW Energy, Hindustan Copper, Indraprastha Gas, Balmer Lawrie & Co, Banco Products (India), Oswal Greentech, Finolex Industries, Forbes & Company, Godfrey Phillips India, HCL Infosystems, Orient Refractories, PNC Infratech, Apex Frozen Foods, Antony Waste Handling Cell, Hexa Tradex, India Glycols, Ind-Swift Laboratories, Inox Wind, KCP, Maharashtra Seamless, MSTC, NCL Industries, Pix Transmissions, Puravankara, Shree Renuka Sugars, State Trading Corporation Of India, Tajgvk Hotels & Resorts, Technocraft Industries (India), United Drilling Tools, Voltamp Transformers
Insider Trades
Adani Green Energy: Promoter Infinite Trade and Investment bought 10 lakh shares on June 23.
Jubilant Ingrevia: Promoter Miller Holdings Pte bought 3.85 lakh shares between June 22-23.
JK Cement: Promoter Ramapati Singhania sold 2,000 shares on June 23.
Persistent Systems: Promoter Sulabha Deshpande sold 9.980 shares on June 22.
Page Industries: Promoters (Sunder Genomal, Ramesh Genomal and Nari Genomal) sold 12,765 shares between June 21-23.
Surya Roshni: Promoter Surya Roshni Employees Welfare Trust bought 55,000 shares between June 21-23.
Ultramarine & Pigments: Promoters (Sridhar Sundararajan HUF and Kala Sundarvedha) sold 3,531 shares on June 23.
Valiant Organics: Promoter Dhanvanti Gala sold 40,347 shares between June 22-23.
Adani Green Energy: Promoter Infinite Trade and Investment bought 10 lakh shares on June 23.
Jubilant Ingrevia: Promoter Miller Holdings Pte bought 3.85 lakh shares between June 22-23.
JK Cement: Promoter Ramapati Singhania sold 2,000 shares on June 23.
Persistent Systems: Promoter Sulabha Deshpande sold 9.980 shares on June 22.
Page Industries: Promoters (Sunder Genomal, Ramesh Genomal and Nari Genomal) sold 12,765 shares between June 21-23.
Surya Roshni: Promoter Surya Roshni Employees Welfare Trust bought 55,000 shares between June 21-23.
Ultramarine & Pigments: Promoters (Sridhar Sundararajan HUF and Kala Sundarvedha) sold 3,531 shares on June 23.
Valiant Organics: Promoter Dhanvanti Gala sold 40,347 shares between June 22-23.
Trading Tweaks
Ex-Date Interim Dividend: R Systems International
Ex-Date Final Dividend: Supreme Petrochem
Ex-Date Dividend: Vimta Labs
Price Band Revised From 10% To 5%: Somany Ceramics
Record Date Stock Split: Inventure Growth & Securities
Record Date Dividend: Adani Total Gas, Adani Ports and SEZ, Torrent Power
Move Out Of Short-Term ASM Framework: Action Construction Equipment, Future Lifestyle Fashions, Marksans Pharma, Arshiya, Anup Engineering, GTL Infrastructure
Move Into ASM Framework: GTL Infrastructure, NCL Industries
Ex-Date Interim Dividend: R Systems International
Ex-Date Final Dividend: Supreme Petrochem
Ex-Date Dividend: Vimta Labs
Price Band Revised From 10% To 5%: Somany Ceramics
Record Date Stock Split: Inventure Growth & Securities
Record Date Dividend: Adani Total Gas, Adani Ports and SEZ, Torrent Power
Move Out Of Short-Term ASM Framework: Action Construction Equipment, Future Lifestyle Fashions, Marksans Pharma, Arshiya, Anup Engineering, GTL Infrastructure
Move Into ASM Framework: GTL Infrastructure, NCL Industries