Sector Update : The tiles sector will see momentum in the near term with metros and tier-1 cities set to further open up after the September quarter 2020.
Strength : Gradual recovery in demand from the domestic market, as well as robust growth in export orders. The falling cost amid improving volumes are also expected to aid the operating profit margin( Reduction in Gas Prices in Gujarat by 15%). Operating profit margin to improve from 13.8 per cent in FY21 to 16.5 per cent in FY22.
Valuations : Valuations
: The Company is now Trading at X
2..60 of its valuations ( last 4Quaters earnings considered here)at ~160%
premium and at X3.71 of its
FY 2021, which is now almost ~2.71% Premium to its value and X 2.32
of its FY 2022 earning with a premium of ~132% and X1.73 of its FY2023
earning with ~73% premium to its valuations.
Margin of Safety (1Yr Bond Yield: Value>1 ) is now 0.6; any downslide
makes it attractive. The Best Price at X1 EPV to Past Reference(5Yrs) is Rs. 445.
Return on Equity
(ROE) which is now 14.90 for FY2020 will be 7.8% in FY2021 and will improve to
+13.90 % by the FY2023.
Disclaimer : We are
/ may going to take exposure shortly.
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Data
Source | NSE Website | Screener.In | Capital Line |
Money Control |
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 |
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