In announcing the 5Gems, we have tried to create a balanced portfolio of stable and aggressive stocks to focus on fundamentals
Only after being satisfied with fundamentals, the pricing part is looking into for a fair price
And even trends that appear to come from price over a certain sector.
It seems the Phthalic Anhydride stocks are showing up well.
Gem 1
GMM Pfaudler Ltd.
CMP 4842.70
GMM Pfaudler (GMM) is the market leader of glass-lined equipment in India with over 50% market share. GMM was a JV between Pfaudler Inc (50.4% stake) and the Ashok Patel family (24.6%) [1]. Pfaudler Inc is a 130-year old German company [2].(Courtesy Screener.com)
- Market Cap ₹ 7,107 Cr.
- High / Low ₹ 5,435 / 3,535
- Stock P/E 110
- Book Value ₹ 308
- Dividend Yield 0.10 %
- ROCE 15.9 %
- ROE 19.9 %
- Face Value ₹ 2.00
- Int Coverage 4.65
- Sales growth 3Years 35.1 %
- Return over 3years 60.8 %
- Debt to equity 1.48
- EPS ₹ 44.1
Expansion in Pharma manufacturing capacities can stoke 50% YOY in the coming two years by March 2024.
Prospects for 9100 or even 10400 by May22 CMP 4842.70.
Gem 2
Refex Industries Ltd
CMP 140.50
Refex Industries is in the business of refilling Refrigerant Gas.
- Market Cap ₹ 297 Cr.
- High / Low ₹ 173 / 75.4
- Stock P/E 8.70
- Book Value ₹ 72.7
- Dividend Yield 1.06 %
- ROCE 44.8 %
- ROE 38.0 %
- Face Value ₹ 10.0
- Int Coverage 4.70
- Sales growth 3Years 102 %
- Return over 3years 91.9 %
- Debt to equity 0.47
- EPS ₹ 16.3
Buy in range 130-135 SL 115
Targets:
- 172 in 1-2 months
- 224 by July22
Gem 3
Thirumalai Chemicals Ltd.
CMP 236.15
Business of Phthalic Anhydride, Food ingredients and fine products, Fine and personal care ingredients.
- Market Cap ₹ 2,426 Cr.
- High / Low ₹ 357 / 81.2
- Stock P/E 10.2
- Book Value ₹ 93.6
- Dividend Yield 0.93 %
- ROCE 19.6 %
- ROE 16.3 %
- Face Value ₹ 1.00
- Int Coverage 15.9
- Sales growth 3Years -6.11 %
- Return over 3years 29.2 %
- Debt to equity 0.18
- EPS ₹ 23.1
Price Catch!.
Good Days ahead for Phthalic Anhydride (An industrial chemical used for large scale production of plasticizers for paints & plastics).
Short Term Target 302 by May22
Gem 4
Balmer Lawrie and Company Ltd
CMP 123.00
Business of Industrial Packaging, Greases & Lubricants, Leather Chemicals, Logistic Services, and Infrastructure, Refinery & Oil Field.
- Market Cap ₹ 2,085 Cr.
- High / Low ₹ 171 / 112
- Stock P/E 13.2
- Book Value ₹ 87.8
- Dividend Yield 4.92 %
- ROCE 8.03 %
- ROE 7.77 %
- Face Value ₹ 10.0
- Int Coverage 14.3
- Sales growth 3Years -3.93 %
- Return over 3years -2.51 %
- Debt to equity 0.08
- EPS ₹ 9.26
The stock did well last 2-3 Quarters beating an average of last three years’ growth, providing scope for better valuation on a short to medium-term basis.
Expect the price to touch 170 from CMP 122.00 in the next 3- 4 months.
Gem 5
Oriental Aromatics Ltd
CMP 762.50
Business of manufacturing Fine chemicals i.e. Camphor, Perfumery & specialty aroma chemicals, fragrances, and flavors.
- Market Cap ₹ 2,588 Cr.
- High / Low ₹ 1,148 / 533
- Stock P/E 27.8
- Book Value ₹ 176
- Dividend Yield 0.33 %
- ROCE 24.4 %
- ROE 20.2 %
- Face Value ₹ 5.00
- Int Coverage 43.9
- Sales growth 3Years 11.9 %
- Return over 3years 40.4 %
- Debt to equity 0.12
- EPS ₹ 27.6
Fair Price to enter at such Lows.
At CMP 762.50 expect to touch 1000 in 3-4 months and then review further.
Nimblr's
Trading Candlesticks Course
08 - 23 Jan
Course + Educational Live Trading
