Dairy Sector( Update ) : The next upmove is awiating

We are expecting an up-move in the Dairy sector. Reason behind it is worldwide the consumptions of milk products mainly packed products are expected to increase by ~20% in the 2021-23. As a prudent blogger, we are sharing the Financial Details of the Dairy stocks for investor community.

We will publish the most suitable candidate from dairy sector , based on the Valuations and Growth prospects.

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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   |

Apcotex Industries Ltd (523694)- Soaring Rubber prices

Apcotex Industries Ltd (523694) closes   at ₹ 270.80 with  a  Gain  of   +12.60 %   on    06-May-2021  with formation of  a  Long  Green  Candle    on Daily  Price Chart.

About the Company : Apcotex Industries Limited is engaged in the business of producing synthetic emulsion polymers. The Company's product range includes vinyl pyridine latex, carboxylated and non-carboxylated styrene butadiene latexes, acrylic latexes, nitrile latex and synthetic rubber. The Company's range of latexes is used for Tire cord dipping, paper/board coating, carpet backing, construction (concrete modification and water proofing), paints, textile finishing and automotive components. Its high styrene synthetic rubber is used in various applications, such as footwear, automotive components, v-belts, conveyer belts and hoses. Its synthetic latex products for paper include Apcotex PC 200, Apcotex PT 600 and Apcotex PT 750. Its synthetic latex products for construction include Apcotex PC 400, Apcotex TSN100, Apcotex TSN400 and Apcotex TSN543. Its synthetic latex products for textile include Apcotex TX 400, Apcotex TX 500 and Apcotex TX 600. Its manufacturing plants are located at Taloja, Mumbai.

Sector Update : Positive

Strength :  Natural rubber prices have soared 75 per cent from the lows after the pandemic hit demand. It is believed that with rising global demand and limited supplies, prices could test 2010-11 highs of $5 per kg over the next five years. Rubber prices are trading at Rs 168-Rs 170 per kg or $2.3 per kg.

Financials : Apcotex Industries Limited  has posted Net Sales / Revenue   of ₹541.00 Cr & Net Profit of ₹ 44.00Cr in FY2021 and expected to post Net Sales / Revenue   of ₹740.70 Cr & Net Profit  of ₹ 54.80Cr in FY2022.

Valuations  : The Company is now Trading at X 2.38 of its  valuations ( FY2020-21 earnings considered here) with ~128 % premium   and at X1.55 of its FY 2022, which is now almost  ~55%  premium   to its value .

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  0.40  which  makes is attractive after a ~60% fall in market price. The  Equity Value Per Share ( Enterprise Value Method ) is  ₹268.

If We factor its earnings/valuations, its Price arrives at ₹682.50 with consideration FY2022 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   |

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.

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

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