Indo Count Industries Ltd (521016) - Good Financial Improvement

Indo Count Industries Ltd (521016)  closes   at ₹139.40  with  a  Gain  of   +1.10 %   on    06-May-2021  with formation of  a  Small  Red  Candle    on Daily  Price Chart.

About the Company : Indo Count Industries Ltd (ICIL) is one of India’s largest home textile manufacturers. It is engaged in the business of manufacture of bedding, quilts pillows, sleeping bags and preparation and spinning of cotton fiber including blended cotton. The company has focused on some of the world’s finest fashion, institutional and utility bedding and sheets and has built significant presence across the globe. Over the years, the company has successfully carved out a niche for itself and has become a total bedding resource. The company’s annual capacity is 90 million metres.

Sector Update : Positive

Strength :  1. The company is strongly moving towards the B2C and D2C segments through high-quality product offerings across varied price points, building visibility through digital campaigns and leveraging omnichannel and e-commerce distribution. It has increased its focus on brand promotion in the US, Europe, the Middle East and India through 10 active brands. Innovation and technological capabilities along with licensed brands, patents and trademarks will further strengthen brand offerings

2. The management team is set to explore various opportunities to enhance capacities and markets. The total capex will be `200 crore and will be funded by a mix of internal accruals and debt and is expected to be operational in H2 of FY 2022. These investments are expected to increase the revenue by `600 crore over the next two years, post commissioning. The stock is trading at an adjusted PE multiple of 12.82x, which is well below its industry average PE. The total debt to equity ratio is 1.21.

 

Financials : Indo Count Industries Ltd  has posted Net Sales / Revenue   of ₹2277.00 Cr & Net Profit of ₹201.00 Cr in FY2020

Valuations  : The Company is now Trading at X 1.50  of its  valuations ( last 4Quaters earnings considered here) with ~50 % premium .

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  1.0 which  indicates it is now Trading at fully priced level, price.

Whats  best in It   : Home is taking centre-stage with consumer spending increasing due to more time spent at home on account of the new ‘work from home’ and ‘social distancing’ culture. Value-added products of health and hygiene are witnessing unprecedented surge in demand. Factors such as reduction in interest rates, buoyant property market, demand pick-up in suburbs and smaller cities of US are contributing to the demand revival. US holiday retail sales grew 8.3 per cent in 2020 over the same period in 2019. Despite unprecedented challenges, consumers and retailers demonstrated incredible resilience this holiday season.

If We factor its earnings/valuations, its Price arrives at ₹318 with consideration FY2024 earnings.

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

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Alkem Laboratories Ltd(539523)- No 1 in anti­infectives.

Alkem Laboratories Ltd(539523 closes   at ₹2796.35 with  a  Gain  of   -+0.70%   on    26-April-2021  with formation of  a  Small  Green  Candle    on Daily  Price Chart.

About the Company : Alkem Laboratories Limited is a pharmaceutical company. The Company is engaged in the development, manufacture and sale of pharmaceutical and neutraceutical products. The Company operates through two segments: pharmaceutical and investing. The Company produces generics, generic drugs, active pharmaceutical ingredients (APIs) and neutraceuticals, which it markets in India and approximately 50 countries internationally, primarily the United States. The Company offers various products, such as CLAVAM 375, CLAVAM BID DRY SYRUP, CLAVAM INJ 300MG, FREEAIR NASAL SPRAY, PAN 40MG INJECTION (VIAL), PAN/40MG TABLETS, PROWEL DRY SYRUP (30ML), TAXCLAV 100 DT TABLETS, SATROGYL O DRY SYRUP, XONE/500MG VAIL, MEROSURE KIT 500, MEROSURE 500 MG and ZADONASE, among others. The Company has approximately 16 manufacturing facilities, of which 14 manufacturing facilities are at geographically diversified locations in India and two in the United States.

Sector Update : Positive

Strength :  1. It is ranked No 1 in anti­infectives. In the chronic segment, too, it has managed to raise its market share despite a smaller presence.

Financials : Alkem Laboratories Ltd  has posted Net Sales / Revenue   of ₹8344.40 Cr & Net Profit of ₹1127.10 Cr in FY2020 and expected to post Net Sales / Revenue   of ₹8967.60 Cr & Net Profit  of ₹1635.40 Cr in FY2021 and Net Sales / Revenue   of ₹10067.20 Cr & Net Profit of ₹1602.20 Cr in FY2022  and Net Sales / Revenue   of ₹11113.60 Cr & Net Profit of ₹1821.70 Cr in FY2023.

Valuations  : The Company is now Trading at X 1.90  of its  valuations ( last 4Quaters earnings considered here) with ~90 % premium   and at X1.23 of its FY 2021, which is now almost  ~23%  premium   to its value and  X 1.25 of its FY 2022 earning with a premium  of ~25% and X1.10 of its FY2023 earning with ~10%  premium to its valuations.

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  0.80  which  makes is attractive after a ~20% fall in market price. The  Equity Value Per Share ( Enterprise Value Method ) is  ₹2687.10

Whats  best in It   : Alkem Laboratories Ltd  is now available at EPS of 94.30(FY2020), which will improve to 151 by FY2023, Free Cash Flow will rise to ₹1359.50 Cr in FY2023 from ₹237.40 Cr during the same period.Book Value per Share will  be ₹822 in FY2023, which is ₹515 in FY2020.

If We factor its earnings/valuations, its Price arrives at ₹4795 with consideration FY2023 earnings.

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

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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   |

 

 

Balrampur Chini Mills Ltd (500038) : Improvement in the business risk profile

Balrampur Chini Mills Ltd (500038) closes   at ₹266.55  with  a  Fall  of   -0.50%   on    23-April-2021  with formation of  a  Small Red  Candle    on Daily  Price Chart.

About the Company : BCML is one of the largest sugar producers in India. The operations of the company are forward integrated, manufacturing ethanol, using molasses' a by-product of sugar, and power, using cogeneration from bagasse,  generated out of sugar manufacturing. Its facilities consist of ten sugar mills in Uttar Pradesh with a combined capacity of 76,500 tonnes per day (TPD) of sugarcane, 520 kilo litres per day (KLPD) of distillery and 165.2 megawatt [MW] of saleable cogeneration capacity. The Saraogi family, the promoters, held 41.21% of the company's equity capital as on December 31, 2020.

Sector Update : Positive

Strength :  1. Established market position and diversified revenue profile 2. Superior and improving operating efficiencies 3. Comfortable financial risk profile

Weaknesses : 1. Susceptibility of business performance to downturn in the sugar business 2. Exposure to regulatory changes in the sugar industry

Financials : Balrampur Chini Mills Ltd  has posted Net Sales / Revenue   of ₹4741.30 Cr & Net Profit of ₹509.30 Cr in FY2020 and expected to post Net Sales / Revenue   of ₹4995.00 Cr & Net Profit  of ₹486.90 Cr in FY2021 and Net Sales / Revenue   of ₹5104.20 Cr & Net Profit of ₹610.50 Cr in FY2022  and Net Sales / Revenue   of ₹5450.10 Cr & Net Profit of ₹712.70 Cr in FY2023.

Valuations  : The Company is now Trading at X 0.70 of its  valuations ( last 4Quaters earnings considered here) with ~30% Discount  and at X0.69 of its FY 2021, which is now almost  ~31%  Discount  to its value and  X 0.55  of its FY 2022 earning with a Discount  of ~45% and X0.47 of its FY2023 earning with ~53 %  Discount to its valuations.

Margin of Safety (1Yr Bond Yield: Value>1 ) is now 2.1 which  makes is attractive as available at almost ~50% Deep Discount.  The  Equity Value Per Share ( Enterprise Value Method ) is  ₹265.80

Whats  best in It   : Balrampur Chini Mills Ltd  is now available at EPS of 14.60(FY2020), which will improve to 35.50 in FY2023, Free Cash Flow will rise to ₹675.50 Cr in from ₹595.20Cr during the same period.Book Value per Share will  be ₹166 in FY2023, which is ₹108 in FY2020.

If We factor its earnings/valuations, its Price arrives at ₹562 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   |