Kajaria Ceramics Ltd – Doubling operating cash flows

Kajaria Ceramics Ltd  closes   at ₹548.45 with  a  Gain   of  +5.40 %   on    29-Sep-2020   with formation of  a  Green Candle    on Daily  Price Chart.

About the Company : Kajaria Ceramics is engaged in a manufacturer of ceramic and vitrified wall and floor tiles

Kajaria Ceramics Ltd  has posted Net Sales / Revenue   of ₹2808.00 Cr & Net Profit of ₹231.20 Cr in FY2020 and expected to post Net Sales / Revenue   of ₹2197.10 Cr & Net Profit  of ₹141.70 Cr in FY2021 and Net Sales / Revenue   of ₹2607.3 Cr & Net Profit of ₹226.80 Cr in FY2022  and Net Sales / Revenue   of ₹3111.70 Cr & Net Profit of ₹304.20 Cr in FY2023.

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

 

Mazagon Dock Shipbuilders IPO & Its Valuations

Mazagon Dock Shipbuilders is a defence public sector undertaking (PSU) shipyard under the department of defence production, Ministry of Defence (MoD) with a maximum shipbuilding and submarine capacity of 40,000 dead weight tonnage (DWT). The company is engaged in the construction and repair of warships and submarines for the MoD and is used by the Indian Navy and commercial clients.

It is a wholly-owned Government of India company, conferred with the "Mini Ratna-I" status in 2006.

The company's business has 2 key operating divisions:

§  Shipbuilding division: This division undertakes building and repairing of naval ships.

§  Submarine and heavy engineering division: This division includes building, repairing, and refitting of diesel electric submarines.

Here are some quick details about this offer:Issue period: 29 September 2020 to 1 October 2020IPO Size: Rs 4.4 billion

Price band: Rs 135 to Rs 145 per equity share

Bid lot: 103 shares and in multiples thereof

Retail Category: Not less than 35% of the net offer

Object of the Issue: The object of the issue is to carry out the divestment of 30,599,017 equity shares by the Government of India constituting 15.17% of the company's pre-offer paid up equity share capital. While the company has also stated the objective of the IPO is to achieve the benefits of listing equity shares on stock exchanges, it will not receive any proceeds from the offer as the entire offer is offer for sale (OFS).

The profit after tax for fiscal 2017, 2018 and 2019 and 2020, were Rs 598.30 crore, Rs.496.20 crore and Rs 532.50 crore and Rs 477.10 crore, respectively.

We have valued the Price of each share based on EPV method and its comes at X3.3 of its FY2020 earnings. Mazagon Dock Shipbuilders‘s share is being offered at ~330% Premium to its FY2020 Earnings at the highest offer price of Rs.145.00.

Source : Various Media Reports and RHP of the company.

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   |

 

Bharti Airtel Ltd – Rising Revenue

Bharti Airtel Ltd  closes   at ₹523.55 with  a  Gain   of  +2.50 %   on    28-Aug-2020   with formation of  a  Green Candle    on Daily  Price Chart.

About the Company : Bharti Airtel Ltd is principally engaged in provision of telecommunication services in India.

Bharti Airtel Ltd  has posted Net Sales / Revenue   of ₹87539.00 & Net Loss   of -₹32183.20 Cr in FY2020 and expected to post Net Sales / Revenue   of ₹100728.10 Cr & Net Loss  of ₹12727.70 Cr in FY2021 and Net Sales / Revenue   of ₹113775.00 Cr & Net Profit of ₹8437.00 Cr in FY2022  and Net Sales / Revenue   of ₹113775.00 Cr & Net Profit of ₹8437.00 Cr in FY2022  and Net Sales / Revenue   of ₹128501.30  Cr & Net Profit of ₹13446.10 Cr in FY2022 .

Sector Update : The industry's revenue will grow at 14-15 per cent in FY21, led by some improvement in average revenue per user (ARPU).^ Source : Media Report

Valuations  : Since the Company has posted New Loss in FY2020 and expected to reduce it losses in FY2021, our model doesn’t value the Loss making cos. As the company is expected to post Priofit in FY2022 and FY2023, it is now Trading at X2.02 of its FY2022 earning and X1.27 of its FY2023 earnings.

Return on Equity (ROE) which is now -4.56 for FY2020 will improve to +17.10% by the FY2023.

The Fare Value of Equity Per Share is ₹259 for FY2022 and ₹413 for FY2023. A Decline in price will make it attractive (~27% fall to reach it FY23 fair value) for Long Term.

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   |