Godrej Consumer Products Ltd (532424) : Global operations will add value

Godrej Consumer Products Ltd (532424) closes   at ₹710.15   with  a  Gain of   +4.40%   on    26-March-2021  with formation of  a  Green Candle    on Daily  Price Chart.

About the Company : Godrej Consumer Products is engaged in a fast moving consumer goods Company, manufacturing and marketing Household and Personal Care products.

Sector Update : Positive

Strength :  1. The company is eyeing a double digit revenue growth and 17%-18% margins in key markets such as Africa 2. Double-digit growth on the back of strong demand in rural markets and recovery in urban areas.3. The soaps category will see 15 per cent growth

Weaknesses : 1. Increase in the cost of raw material such as palm oil and packaging material.

Financials : Godrej Consumer Products Ltd has posted Net Sales / Revenue   of ₹9910.80Cr & Net Profit of ₹2143.00 Cr in FY2020 and expected to post Net Sales / Revenue   of ₹10911.30 Cr & Net Profit  of ₹2448.10 Cr in FY2021 and Net Sales / Revenue   of ₹11922.50 Cr & Net Profit of ₹2690.50 Cr in FY2022  and Net Sales / Revenue   of ₹13097.70 Cr & Net Profit of ₹3005.90 Cr in FY2023.

Valuations  : The Company is now Trading at X 4.10 of its  valuations ( last 4Quaters earnings considered here) with ~310% Premium  and at X1.82 of its FY 2021, which is now almost  ~82%  Premium to its value and  X 1.62 of its FY 2022 earning with a premium  of ~62% and X1.48of its FY2023 earning with ~48%  premium to its valuations.

Margin of Safety (1Yr Bond Yield: Value>1 ) is now 0.4, which  makes is attractive after ~60% decline in CMP. The  Equity Value Per Share ( Enterprise Value Method ) is  ₹702.70

Whats  best in It   : Godrej Consumer Products Ltd is now available at EPS of 14.60(FY2020), which will improve to 20.9 in FY2023, Debt is ₹1148.50 Cr inFY2020 will Decline to ₹320.70 by Fy2023 and Free Cash Flow will rise to ₹2171.10 Cr in from ₹1436.10 Cr during the same period.The cos is planning to go for capex, will rise from ₹152.00Cr in FY2020 to ₹285.0 Cr in FY2023; Return on Assets from 10.90% to 12.60% and Book Value per share from ₹77.30 to ₹101.00 by FY2023.

If We factor its earnings/valuations, its Price arrives at ₹1964.00 with consideration FY2023 earnings.

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   |

 

 

Trident Ltd : Outlook Turned Positive on Financial Strength and Business Growth

Trident Ltd  closes   at ₹13.70   with  a  Fall  of   -0.60%   on    26-March-2021  with formation of  a  Red  Candle    on Daily  Price Chart.

About the Company : Trident Limited, the flagship company of the Trident Group, is a leading manufacturer of yarn, Bath Linen, Bed Linen and wheat straw-based paper, Chemicals and Captive Power. Currently, the company has manufacturing facilities in Barnala (Punjab) and Budhni (Madhya Pradesh).

 Sector Update : Healthy over the medium term

Strength :  1. Diversified revenue with leading market position in the home textiles segment, and established position in WPP(writing and printing (WPP) paper.2. Strong operating efficiency driven by integration of operations 3. Strong financial risk profile

Weaknesses : 1. Exposure to volatility in cotton prices and rupee 2. Working capital-intensive operations 3. Susceptibility to slowdown in the end-user market and to competition in the home textiles segment

Financials : Trident Ltd  has posted Net Sales / Revenue   of ₹4738.00 Cr & Net Profit of ₹340.00 Cr in FY2020 and expected to post Net Sales / Revenue   of ₹4550.00 Cr & Net Profit  of ₹340.00Cr in FY2021 and Net Sales / Revenue   of ₹5660.00Cr & Net Profit of ₹520.00 Cr in FY2022  and Net Sales / Revenue   of ₹6400.00 Cr & Net Profit of ₹670.00Cr in FY2023.

 Valuations  : The Company is now Trading at X 2.70 of its  valuations ( last 4Quaters earnings considered here) with ~170% Premium  and at X1.26 of its FY 2021, which is now almost  ~26%  Premium to its value and  X 0.82 of its FY 2022 earning with a Discount  of ~18% and X0.64 of its FY2023 earning with ~36%  Discount to its valuations.

Margin of Safety (1Yr Bond Yield: Value>1 ) is now 0.6, which  makes is attractive after ~40% decline in CMP. The  Equity Value Per Share ( Enterprise Value Method ) is  ₹13.00.

Why We are Running behind Trident Ltd : The aggregate revenues are expected to grow by ~15% p.a. as against CAGR (compounded annual growth rate) of ~2% during fiscal 2018 to 2020, led by continued traction in home textiles and cotton yarn as well as recovery in the paper segment as well as commissioning of planned capacity addition.

If We factor its earnings/valuations, its Price arrives at 57.90 with consideration FY2023 earnings.

 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   |

 

Anupam Rasayan India Limited : IPO & Its Valuations

Anupam Rasayan India Ltd (ARIL) is one of the leading companies engaged in the custom synthesis and manufacturing of specialty chemicals in India. It commenced business as a partnership firm in 1984 as a manufacturer of conventional products and has, over the years, evolved into custom synthesis and manufacturing of life science related specialty chemicals and other specialty chemicals, which involve multi-step synthesis and complex technologies, for a diverse base of Indian and global customers. Its key focus in its custom synthesis and manufacturing operations is developing in-house innovative processes for manufacturing products requiring complex chemistries and achieving cost optimization.

Here are some quick details about this offer:

Issue period: Mar 12 – Mar 16, 2021

IPO Size: Rs. 757.3 – 760.0 cr

Price band: Rs. 553 –555 (discount of Rs.55 for eligible employees)

Bid lot: 27 equity shares and in multiples thereof.

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

 Anupam Rasayan India Limited has  Net Sales / Revenue   of ₹501.50 Cr & Net Profit  of ₹50.21Cr in FY2019 and Net Sales / Revenue   of ₹528.88Cr & Net Profit of ₹52.98  Cr in FY2020 & Net Sales / Revenue   of ₹539.22 Cr & Net Profit of ₹48.10 Cr in 9 months of FY2021.

Financial Cost of the Cos. Was  ₹24.35Cr in FY2019 and increased  to ₹49.63Cr in FY21 with increase of Fixed Assets of ₹ 667.66 Cr in FY2019 to ₹972.64Cr in FY2021. PATM % was 9.5 in FY2019, 9.8%in FY2020 & 8.5% in FY2021.

We have valued the Price of each share based on EPV method and its comes at X0.50 of its FY2021 earnings(9Months). Anupam Rasayan India Limited ‘s share is being offered at 50% Discount  to its FY2021 (9Months) Earnings at the highest offer price of ₹555.00

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   |