5Gem

5 Gems #15

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

Related Articles

Leave a Reply

Your email address will not be published.

Check Also
Close
Back to top button