You can reach the author at +91 880 2230 836 or e-Mail : mail@niftynext.com
Wednesday, April 14, 2021
Monday, March 29, 2021
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.
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 |
Sunday, March 28, 2021
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).
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.
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.
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 |
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