Punjab National Bank (532461) – One Bank with Double Gain

Punjab National Bank (532461) closes   at ₹43.10  with  a   Fall  of   -1.50%   on    04-June-2021  with formation of  a  Small  Red  Candle    on Daily  Price Chart.

About the Company : Punjab National Bank is India's first Swadeshi Bank. PNB is a Banking and Financial service bank owned by the Government of India with its headquarters is in New Delhi, India. It is the second largest PSU after SBI in India

Financials : Punjab National Bank has posted Net Sales / Revenue   of ₹81866.00 Cr & Net Profit  of  ₹2562.00 Cr in FY2021 .

Valuations  : The Company is now Trading at X 1.1   of its  valuations of its FY2021 earnings with ~10% Premium and X0.47 of its FY2022 earnings with ~43% Discount to its value.

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  1.4  which  makes is attractive .The  Equity Value Per Share ( Enterprise Value Method ) is  ₹43.10

Latest Management Update : 1. PSBs have identified bad loans worth ₹84,000 crore to be transferred to the proposed government­-backed bad bank National Asset Reconstruction Company Ltd (NARCL)This public sector lender has also identified bad loans worth ₹8,000 crore that it intends to transfer in the first phase

2.Punjab National Bank (PNB) expects its bottomline to be at least ₹6,000 crore this fiscal.

If We factor its FY2022 earnings/valuations, its Price arrives at ₹90.70

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

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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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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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Sudarshan Chemical Industries Ltd (506655) – Pigment Player

Sudarshan Chemical Industries Ltd (506655) closes   at ₹669.25  with  a   Fall  of   -0.20%%   on    01-June-2021  with formation of  a  Small  Red  Candle    on Daily  Price Chart.

About the Company : Sudarshan Chemical Industries manufactures and sells a wide range of Organic and Inorganic Pigments, Effect Pigments. The Group also manufactures Pollution Control Equipment, Size Reduction Equipment and Grinding Equipments for industrial applications

Strength :  Two major global players shifting away from the pigment business could act as a tailwind for  ndian pigment manufacturers

Financials : Sudarshan Chemical Industries Ltd has posted Net Sales / Revenue   of ₹ 1864.10 Cr & Net Profit  of  ₹141.10Cr in FY2021 and expected to post Net Sales / Revenue   of ₹2163.10 Cr & Net Profit of ₹161.70 Cr in FY2022 & Net Sales / Revenue   of ₹2477.50 Cr & Net Profit of ₹201.80 Cr in FY2023

Valuations  : The Company is now Trading at X 2.0   of its  valuations of its FY2021 earnings with ~100% Premium and X1.72 of its FY2022 earnings with ~70% premium and X1.38 of its FY2023 earnings with ~38% premium.

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  -0.8  which  makes is attractive after a ~20% fall in market price. The  Equity Value Per Share ( Enterprise Value Method ) is  ₹665.80.

Latest Management Update : Exports accounted for 49 per cent of revenues for the pigment segment; Specialty pigments constituted 68 per cent of the revenues for pigment segment in Q4; The company’s Capex is planned to build and concentrate onincreasing specialty pigments in its mix; It is about to finish its Capex plan of ₹600 crore in FY22; Sales from the total Capex will ramp up gradually over 3­4 years. This Capex has a revenue potential ₹1,000­1,200 crore at full capacity. Additional Capex for FY22 is ₹135 crore, which will be used to build infrastructure; and raw material price inflation is about 2­2.5 per cent.

If We factor its FY2023 earnings/valuations, its Price arrives at ₹970.00

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   |

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