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5 Gems #11

In announcing the 5Gems, we have tried to create a balanced portfolio of stable and aggressive stocks.

Gem 1

UPL Ltd Fully Paid Ord. Shrs

CMP 768.65

  • Market Cap ₹ 58,797 Cr.
  • High / Low ₹ 865 / 407
  • Stock P/E 18.2
  • Book Value ₹ 273
  • Dividend Yield 1.30 %
  • ROCE 13.8 %
  • ROE 15.0 %
  • Face Value ₹ 2.00
  • Int Coverage 3.09
  • Sales growth 3Years 30.6 %
  • Return over 3years 14.8 %
  • Debt to equity 1.17
  • EPS ₹ 41.5

Acquisition of Arysta Life science was an upfront cash deal and most of the funds for acquisition was routed through borrowings but with Interest Cover at 3.09 and Sales growth 3yrs average at 30% the acquisition should support the company’s performance.

CMP 768.65

TGT 920 IN 2mths

TGT 1178 by May22

Gem 2

Bharat Bijlee Ltd

CMP 1860.00

  • Market Cap ₹ 1,040 Cr.
  • High / Low ₹ 1,951 / 803
  • Stock P/E 18.3
  • Book Value ₹ 1,889
  • Dividend Yield 0.27 %
  • ROCE 4.91 %
  • ROE 2.91 %
  • Face Value ₹ 10.0
  • Int Coverage 4.98
  • Sales growth 3Years -1.88 %
  • Return over 3years 15.9 %
  • Debt to equity 0.30
  • EPS ₹ 101

Manufactures transformers, electric motors, magnet technology machines and drives & automation system.

Next Capital Goods Cycle could help the company.

Long Term View

TGT 2244 in 2mths

TGT 3579 by May22

Gem 3

Ajanta Soya Ltd

CMP 130.40

  • Market Cap ₹ 210 Cr.
  • High / Low ₹ 152 / 41.0
  • Stock P/E 4.71
  • Book Value ₹ 66.4
  • Dividend Yield 0.00 %
  • ROCE 60.2 %
  • ROE 37.2 %
  • Face Value ₹ 10.0
  • Int Coverage 59.5
  • Sales growth 3Years 39.1 %
  • Return over 3years 69.4 %
  • Debt to equity 0.01
  • EPS ₹ 27.6

Vanaspati plant and refinery is in Alwar, Rajasthan.

Manufactures refined oils for third party/ contract manufacturing for various renowned brands.

The company’s clients include Cremica, Godrej, Britannia, Bikano, Anmol, United Biscuits, Sungold, Harvest Gold, Parle, PriyaGold, PepsiCo, ITC, Haldirams, and others.

TGT 174 in 3months

TGT 230 by May22

Gem 4

India Pesticides Ltd

CMP 321.80

  • Market Cap ₹ 3,715 Cr.
  • High / Low ₹ 364 / 301
  • Stock P/E 27.6
  • Book Value ₹ 49.0
  • Dividend Yield 0.00 %
  • ROCE 52.0 %
  • ROE 41.6 %
  • Face Value ₹ 1.00
  • Int Coverage 53.4
  • Sales growth 3Years 37.8 %
  • Return over 3years %
  • Debt to equity 0.01
  • EPS ₹ 12.0

India Pesticides Ltd (IPL) is one of the fastest-growing agro-chemicals companies in terms of volume of Technicals manufactured and the company majorly operates in two business verticals.

TGT 435 IN 2mths

TGT 611 by May22

Gem 5

Psp Projects Ltd

CMP 561.00

  • Market Cap ₹ 1,851 Cr.
  • High / Low ₹ 552 / 375
  • Stock P/E 14.0
  • Book Value ₹ 162
  • Dividend Yield 0.78 %
  • ROCE 21.8 %
  • ROE 16.5 %
  • Face Value ₹ 10.0
  • Int Coverage 13.0
  • Sales growth 3Years 18.2 %
  • Return over 3years 8.81 %
  • Debt to equity 0.32
  • EPS ₹ 36.7

One-Stop-Shop solution services across the construction value chain ranging from planning and design to construction and post-construction activities, including mechanical, engineering, and plumbing(MEP) work and other interior fit-outs to private and public sector enterprises.

PSP Projects Best Buy @ 460 -480 SL 394 CMP 514.65

TGT 570 2mths

TGT 750 6mths

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