INTRESTING FACTS

The highest bull markets in any nation happens when the economy moves from 2 Trillions to 5 Trillions. There are 3 nations who have done it:

- China took 5 Years to go from 2 Trillions to 5 Trillions (2004-2009)
During this time the Hangsang went from 8500 to 32000 – Gain of 4 times.

- USA took 11 years to go from 2 Trillions to 5 Trillions (1977-1988)
The Dow Jones between 1977 to 2000 went from 700 levels to 12000 – Gain of 15 times.

- Japan took 8.5 years to go from 2 Trillions to 5 Trillions (1978-1986)
The Japanese stock market between 1978-1991 went from 2000 to 37000 - Gain of 14 times.

So Historically the mother of all Bull Markets in any nation starts between 2 Trillions to 5 Trillions!

India and the Indian Economy is just getting started.

Join yourself and create wealth by compounding over a long term.

Happy Investing in India

As per our Past Experience and Alalysis Markets are heading a fresh bull run

Next 12-15 months - Overall should do good for Markets & Individual scripts

Nifty had made ATH in OCT 2021 AND THAN RETRACEMENT/CORRECTION was there TILL SUB 15000 OR SAY 15300 ZONE Approx

Now it's trading around 18500

Even charts are saying same thing

Bull run does not means Index will rise everyday.

But up days will be more than down days and sustained rally comes in bull market

But lets see what market gives. Hoping for the best
Market know more than Anyone

DEEPAK NITRITE

Cmp - 2125

Watch out for close above 2120 & 2145

For Fresh upmove

It seems

GNFC has done with Bottom and as Monsoon approaches July - Aug - Sept - oct we can see upmove

Cmp - 584

Keep on Radar

POWER MECH

CAN easily be 5000+ Candidate

Are Markets Sensing Rate Cut

That might be the Reason for Strong upmove in Nifty

POONAWALA FINCORP

FRESH ATH

360

VIKRAM THERMO

88

DEEPAK FERTLIZER

Getting Ready for 650 - 700+

Cmp - 572

ISGEC Heavy Engineering

Cmp - 614

Market cap - 4515cr

52wk High/Low - 642/418

Book Value - 313

Dividend Yield - 0.33%

ROCE - 10.5%

ROE - 8.88%

Strong play in Capital Goods space.

ISGEC is a 90-year old diversified heavy engineering and EPC business. Order book stands at
Rs 8321 CR (March 2023) and the market cap stands at Rs 4515cr

The company has three major divisions:-

1. Manufacturing (34% Revenues)
2. EPC (50% Revenues)
3. Sugar and Ethanol (16% Revenues)

The company is into manufacturing of Boilers, Process Equipment, Presses and Casting. It has a strong presence in EPC projects to help clients with their power projects, Sugar plant and distilleries, Civil Construction, Waste water treatment projects and Air Pollution Control Equipment.

How does an industrial boiler work? realpars.com/boiler/

What is casting?
youtube.com/watch?v=ahqqmC…

ISGEC has presence across the manufacturing space.

Order Book Breakup across Sectors:-

1. Refineries 28%
2. Power 21%
3. Steel, Cement and Aluminium 14%
4. Sugar 13%
5. Chemical and Petrochemicals 12%
6. Railways 2%
7. Others 10%

10% of order book comes from International sales. ISGEC commissioned an ethanol plant in 2021.

ISGEC has a strong clientele base (see attachment)

Q4FY23 Earnings Update:-

1. Sales up 24% YOY
2. PAT up 138% YOY
3. PAT Margins at 4.5%
4. Positive cash flows from operations in FY23 (Huge increase in receivables and payables)
5. Strong balance sheet. No ALM Mismatch with CA>CL and no long-term borrowings.

The EPC segment (50% Revenue) has razor-thin EBIT margins of 4%. The other segments has higher margins averaging around 8%.

It is in the nature of the model to have high CAPEX Model indicated by the low ROE Model.

ISGEC is an interesting model that can benefit immensely if the manufacturing theme comes alive in the next decade for India.

Disc - All views expressed are personal and only for educational and study purpose. Consult your financial advisor before investing or taking any position based on above article

ISGEC

KEEP ON RADAR

CMP - 629

Once crossed & Closed above
645 - 650 zone
Shld see Good upmove