Vinyl Chemicals (I) Ltd ( 524129 ) - Rising VAM prices will add at Bottomline

Vinyl Chemicals (I) Ltd ( 524129 ) closes   at ₹146.75 with  a  Loss  of   -3.70%   on    14-May-2021  with formation of  a  Red  Candle    on Daily  Price Chart.

About the Company : Vinyl Chemicals (India) Ltd. is engaged in trading of chemicals. The Company is involved in the business of selling various specialty chemicals to textile, paints and adhesive sectors. The Company is engaged mainly in trading of Vinyl Acetate Monomer (VAM). The VAM is imported/sourced from various global suppliers and distributed/traded in India

Sector Update : Positive

Strength :  VAM costs surged 186% YoY and 19.1% QoQ.

Financials : Vinyl Chemicals (I) Ltd  has posted Net Sales / Revenue   of ₹404.00Cr & Net Profit of ₹11.00 Cr in FY2021.

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  1.1  which  makes is attractive after a ~10% fall in market price. The  Equity Value Per Share ( Enterprise Value Method ) is  ₹140.

Whats  best in It   : Vinyl Chemicals (I) Ltd is a Debt Free Company  .Owners Cash profit has turned positive and it finds place in our Growth Candidate matrix.

If We factor its earnings/valuations, its Price arrives at ₹198 with consideration FY2022 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   |

 

Railtel Corporation of India Ltd (543265) - Participate in India's digitization drive

Railtel Corporation of India Ltd (543265)     closes   at ₹125.60  with  a  Loss  of   -1.70%   on    14-May-2021  with formation of  a  Red  Candle    on Daily  Price Chart.

About the Company : RailTel is a "Miniratna" PSE of Government of India focusing on providing broadband and VPN services. RailTel was formed in 2000, with the objective of creating nationwide broadband, telecom and multimedia network, to modernize train control operation and safety system of Indian Railways. RailTel's network passes through around 5,000 stations across the country, covering all major commercial centers

Sector Update : Positive

Strength :  Strong Orderbook Offers Revenue visibility mainly with Indian Railways

Financials : Railtel Corporation of India Ltd  has posted Net Sales / Revenue   of ₹1128.10r & Net Profit of ₹141.10 Cr in FY2020 and expected to post Net Sales / Revenue   of ₹1358.60 Cr & Net Profit  of ₹185.80 Cr in FY2021 and Net Sales / Revenue   of ₹1675.70 Cr & Net Profit of ₹263.70Cr in FY2022 ;Net Sales / Revenue   of ₹2063.70 Cr & Net Profit of ₹324.0 Cr in FY2023 and Net Sales / Revenue   of ₹2445.0Cr & Net Profit of ₹381.50 Cr in FY2024.Valuations  : The Company is now Trading at X 3.6  of its  valuations ( last 4Quaters earnings considered here) with ~260 % premium   and at X1.3 of its FY 2021, which is now almost  ~30%  premium   to its value and  X 0.94 of its FY 2022 earning with a Discount   of ~6% and X0.76 of its FY2023 earning with ~24%  discount to its valuations and ~35% Discount to its FY2024 earnings.

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  ₹119.700

Whats  best in It   : Railtel Corporation of India Ltd   is a Debt Free Company  and now available at EPS of 4.40 (FY2020), which will improve to 11.90 by FY2024,

If We factor its earnings/valuations, its Price arrives at ₹256 with consideration FY2024 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   |

 

 

NACL Industries Ltd ( 524709 )- Healthy gross cash accruals strengthening Balance Sheet

NACL Industries Ltd ( 524709 )  closes   at ₹47.35 with  a  Loss  of   - 0.60 %   on    12-May-2021  with formation of  a  Large Red  Candle    on Daily  Price Chart.

About the Company : NACL Industries Limited, formerly Nagarjuna Agrichem Limited, is holding company, which is engaged in the business of agri inputs. The Company is involved in the business of crop protection. It manufactures technicals (active ingredient (AI)) and formulations. It manufactures pesticides, insecticides, acaricides, herbicides, fungicides and other plant growth chemicals. Its Formulation Business is primarily in the Indian Market. It has a range of branded formulations. It also exports technicals and formulations, and does toll manufacture for various companies. It manufactures a range of technicals, such as Acephate, Myclobutanil, Profenofos and Pretilachlor. It offers insecticides, including Cannon, Conserve and Dimite; fungicides, including Nagarjuna Mass Plus and Nagarjuna Combi Plus; herbicides, including Eraze, Point and Rhino, and plant growth regulators, including Nagarjuna Nutri G and Nagarjuna Nutri Plus.

Sector Update : Positive

Strength :  1. Healthy gross cash accruals, improvement in liquidity marked by reduced reliance on working capital borrowings due to efficient working capital management while maintaining healthy cash and liquid funds.2. Introduction of new products

Financials : NACL Industries Ltd has posted Net Sales / Revenue   of ₹1015.00 Cr & Net Profit of ₹17.00 Cr in FY2020 and expected to post Net Sales / Revenue   of ₹1138 Cr & Net Profit  of ₹38 Cr in FY2021 .

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  1.1  which  makes is. The  Equity Value Per Share ( Enterprise Value Method ) is  ₹41.50

Whats  best in It   : NACL Industries Ltd  is now available at EPS of  0.87 (FY2020), which will improve to 1.98 in  FY2021, Return on Equity is 5.22% , ROA is 3.63%, Book Value per Share is ₹18.50 and Cos.  Has paid dividend of ₹ 0.10 per share in FY2020.

If We factor its earnings/valuations, its Price arrives at ₹65 with consideration FY2021 earnings, ₹85 with consideration FY2022 earnings & ₹110 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   |