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Friday, May 21, 2021

Visaka Industries Ltd (509055) – Now Available at 40% Discount

Visaka Industries Ltd (509055) closes at ₹676.30 with a Loss of -1.20% on 14-May-2021 with formation of a Small Red Candle on Daily Price Chart.

About the Company : Visaka Industries Ltd is engaged in the business of manufacture of cement fibre sheets, fibre cement boards & panels, solar panels and synthetic yarn.

Sector Update : Stable

Strength : 1. Yarn business returned to growth in Q4(2020-21)

2. The asbestos cement roofing industry is seeing a strong demand and pricing tailwinds after a disappointing period of 2-3 years. The sharp surge in domestic and international steel prices also seems to be benefiting asbestos sheet manufacturers.

3. Solid progress on market positioning and cost-control initiatives.

Financials : Visaka Industries Ltd has posted Net Sales / Revenue of ₹1146.20 Cr & Net Profit of ₹110.60 Cr in FY2021 and expected to post Net Sales / Revenue of ₹1261.30 Cr & Net Profit of ₹113.60 Cr in FY2022 and Net Sales / Revenue of ₹1367.40 Cr & Net Profit of ₹126.50 Cr in FY2023.

Valuations : The Company is now Trading at X 0.60 of its valuations ( last 4Quaters earnings considered here) with ~40 % Discount and at X0.59 of its FY 2022, which is now almost ~41% Discount to its value and X0.53 of its FY 2023 earning with a Discount of ~47% .

Margin of Safety (1Yr Bond Yield: Value>1 ) is now 2.60 . The Equity Value Per Share ( Enterprise Value Method ) is ₹607.20.

Whats best in It : The company appears well-positioned to grow as the building products segment is anticipated to get a boost from government spending on infrastructure projects.Net Cash Accrual has increased from ₹90.42 Cr in FY2020 to ₹147.25 Cr in FY2021, whereas Capital Cycle Deterioration is 0.7 ( Below is good). It appears as Growth Candidate in our Analysis.

If We factor its earnings/valuations, its Price arrives at ₹1271.00 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 |

Goldiam International Ltd ( 526729 ) - Gems are always Cash Rich

Goldiam International Ltd ( 526729 ) closes at ₹425.50 with a Gain of +4.60% on 21-May-2021 with formation of a Green Candle on Daily Price Chart.

About the Company : Goldiam International is engaged in the business of Manufacturers and exporters of studded gold and silver jewellery

Strength : 1. Strengthening its presence in the US, driven by its focus on lab-grown diamonds, which have been gaining popularity.

2. Focusing on growing e-commerce sales, the company aims to reach a larger audience and improve its profitability and working capital cycle

Financials : Goldiam International Ltd has posted Net Sales / Revenue of ₹365.00 Cr & Net Profit of ₹47.00 Cr in FY2020 and expected to post Net Sales / Revenue of ₹357.00 Cr & Net Profit of ₹67.00 Cr in FY2021 .

Valuations : The Company is now Trading at X 0.80 of its valuations ( FY2021 earnings considered here) with ~20 % Discount.

Margin of Safety (1Yr Bond Yield: Value>1 ) is now 1.80 which makes is attractive. The Equity Value Per Share ( Enterprise Value Method ) is ₹398.80

Whats best in It : Goldiam International Ltd is a Debt Free Company and now available at EPS of 21.14 (FY2020), which will improve to 30.08 by FY2021 & a regular Dividend Payment company. Cash equivalents form about 40 per cent of the market cap.

If We factor its earnings/valuations, its Price arrives at ₹773.00 with consideration FY2024 earnings. ( ₹951.20 for FY2025 Earnings Basis).

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

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