5Gem

5 Gems #12

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

The Portfolio focuses on stability, keeping in mind, we are investing in a matured bullish market.

Astral should provide a backbone stock for this 5GEM Portfolio with Lumax and Arrow Greentech for the sprint.

Blue Star & Greaves Cotton for a long-term scenario over a year.

Gem 1

Blue Star Ltd

CMP 1039.00

  • Market Cap ₹ 10,011 Cr.
  • High / Low ₹ 1,092 / 701
  • Stock P/E 67.3
  • Book Value ₹ 92.5
  • Dividend Yield 0.38 %
  • ROCE 12.7 %
  • ROE 8.96 %
  • Face Value ₹ 2.00
  • Int Coverage 5.36
  • Sales growth 3Years -2.77 %
  • Return over 3years 18.3 %
  • Debt to equity 0.51
  • EPS ₹ 15.4

Expected to show a good working for 21-22 and 22-23 with orders in hand and new orders as the economy returns back to normal.

Blue Star CMP 1039.00

TGT 1357 3months

SL 949

Gem 2

Astral Ltd

CMP 2310.95

  • Market Cap ₹ 46,309 Cr.
  • High / Low ₹ 2,434 / 1,028
  • Stock P/E 90.3
  • Book Value ₹ 104
  • Dividend Yield 0.08 %
  • ROCE 29.5 %
  • ROE 23.6 %
  • Face Value ₹ 1.00
  • Int Coverage 66.3
  • Sales growth 3Years 15.3 %
  • Return over 3years 53.9 %
  • Debt to equity 0.04
  • EPS ₹ 25.5

Coming out of a pandemic, it would be a good stock to maximize revival in the economy as enjoying a good envied position in the markets.

Better Valuation prospects are juicy at CMP 2301.95 even if stock markets turn dull.

At 2019 EPS 9.87 max Price Jan20 was 937 PE 94.

At 2021 EPS 20.31 max Price Oct21 was 2433 PE 119.

At 2022 Expected EPS 25 Estimated Max Price Projected 3000 CMP 2301 @ PE 120. 

Expected Targets:

3130 by Jan22

3700 by May22

Gem 3

Greaves Cotton Ltd

CMP 152.80

  • Market Cap ₹ 3,538 Cr.
  • High / Low ₹ 184 / 73.0
  • Stock P/E
  • Book Value ₹ 31.8
  • Dividend Yield 0.13 %
  • ROCE 3.37 %
  • ROE 4.44 %
  • Face Value ₹ 2.00
  • Int Coverage 3.89
  • Sales growth 3Years -5.75 %
  • Return over 3years 7.52 %
  • Debt to equity 0.06
  • EPS ₹ -0.48

Last 3 years Sales Growth -5.75% is now a thing of the past.

The Ranipet plant can work wonders for the next 2 years of sustained growth.

Though caught in the intra-day trading net @ 134 on 16Nov21 13:30 for Investment.

The stock can be picked even now @ CMP 153.00.

It has been picked up even on 30Dec20 @ 86 to touch 184 on June 21.

Expecting an EPS 7 for Mar22 with PE 25 Price 175.00.

Targets:

  • 206 by Jan22
  • 242 by April 22

Gem 4

Lumax Industries Limited

CMP 1495.00

  • Market Cap ₹ 1,387 Cr.
  • High / Low ₹ 1,820 / 1,220
  • Stock P/E 28.9
  • Book Value ₹ 492
  • Dividend Yield 0.47 %
  • ROCE 7.51 %
  • ROE 3.70 %
  • Face Value ₹ 10.0
  • Int Coverage 4.53
  • Sales growth 3Years -4.73 %
  • Return over 3years -4.31 %
  • Debt to equity 0.92
  • EPS ₹ 51.3

Leader in Automotive Lighting

Increasing vehicular traffic post-pandemic supports retail businesses which may have been affected by the pandemic.

OEM consumption is back to normal.

Target 1937  in 3-4 months.

Gem 5

Arrow Greentech Ltd

CMP 130.80

  • Market Cap ₹ 183 Cr.
  • High / Low ₹ 183 / 44.1
  • Stock P/E 24.7
  • Book Value ₹ 59.0
  • Dividend Yield 0.00 %
  • ROCE 7.90 %
  • ROE 8.33 %
  • Face Value ₹ 10.0
  • Int Coverage 11.0
  • Sales growth 3Years 14.9 %
  • Return over 3years 12.1 %
  • Debt to equity 0.03
  • EPS ₹ 5.27

Arrow Greentech is back on the recovery path.

Time to Invest now.

Target 200 in next 3-4 months.

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