Varroc Engineering Ltd – Valuations at Through Away Level

Varroc Engineering Ltd  closes   at ₹ 190.05 with  a Loss    of   -4.20  %   on    26-June- 2020   with formation of  a  red  Candle    on Daily  Price Chart.

About the Company : Varroc Engg. is engaged in the business of manufacturing of Automobile components.

The Company has posted Net Sales of ₹ 11,220.8 Cr & Net Profit of ₹ 11.7 Cr in FY2020 and expected to post Net Sales of ₹8922.50 Cr & Net Loss  of ₹290.30 Cr in FY2021 and Net Sales of ₹12503.40 Cr & Net Profit of ₹232.60  Cr in FY2022 and Net Sales of ₹14065.60 Cr & Net Profit of ₹420.60 Cr in FY2023.

Valuations  : The Company is now Trading at X 12.8  of its Value. We have valued the company with its  expected Financial Year 2020 earnings  , which is now almost ~1300%  Premium  to its value & X -0.52  of its FY20201 earning with a Discount  of ~148%   and X 0.64   of its FY20202  earning with a Discount  of ~ 36%. And X0.36 of its FY 2023 earnings with a Discount of ~64%

Free Cash Flow, which is  - ₹1,73.00Cr in FY 2020 will improve to ₹305.20Cr in FY2022 and ₹ 541.30 in FY2023.

The Fare Value of Equity Per Share is ₹295 for FY22 & ₹534 for 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 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |

Selling these Two Over Priced Stocks

1. Glenmark Pharmaceuticals Ltd – The stock is in news after the COVID-19 medicine news. For Its Fabiflu, the market opportunity is expected to be less than Rs 1 bn. , which has less contribution to its Bottom Line. Huge Debt is nowhere to go out of balance sheet.2. Bajaj Holdings & Investment Ltd – Sudden rise in its stakes in Bajaj Finance, makes it Value rich.Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

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 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |

Which Mall developer will Perform Well ?

Top mall developers in India are reworking their rental agreements with retailers after reopening of malls in most cities after Lockdown.

We have find that Brigade, DLF and Prestige are working on rent waivers to the Retailers, with conditions of absence of any outstanding dues by its retail partners.

While Phoenix Mills Ltd is the only developer which has worked out a three-month rent deferral programme for its tenants. It will not affect it balance sheet adversely compare to others.

Valuations : Phoenix Mills Ltd is now Trading atX1.5 of its expected earnings of FY2020 & Margin of Safety (1Yr Bond Yield: Value>1 ) is 1.1

Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

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 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |