5Gem

5 Gems #16

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

Two good stocks providing good compounding entry are ATUL and Kirloskar Bros.

Jash, Selan and Jayant Agro as sprinters.

Gem 1

Atul Ltd

CMP 9267.00

This company segments, namely Life Science Chemicals and Performance & Other Chemicals, under seven sub-segments, namely Aromatics, Bulk Chemicals and Intermediates, Colors, Crop Protection, Floras, Pharmaceuticals and Polymers.

  • Market Cap ₹ 27,531 Cr.
  • High / Low ₹ 10,975 / 6,220
  • Stock P/E 40.7
  • Book Value ₹ 1,437
  • Dividend Yield 0.21 %
  • ROCE 24.0 %
  • ROE 18.3 %
  • Face Value ₹ 10.0
  • Int Coverage 109
  • Sales growth 3Years 2.02 %
  • Return over 3years 39.0 %
  • Debt to equity 0.01
  • EPS ₹ 228

Expansion Plan Projects like Mono-Chloro-Acetic acid (MCA) could provide growth for next 1-2 years.

Good time to Buy and Hold for Compounding.

At this price, it is an ideal compounding candidate better than any Mutual Fund.

Expect +40%; Target 13353 by Jun22.

Gem 2

Kirloskar Brothers Limited

CMP 370

Complete fluid management solutions for large infrastructure projects in the areas of water supply, power plants, irrigation, oil & gas, and marine & defense.

  • Market Cap ₹ 2,958 Cr.
  • High / Low ₹ 505 / 131
  • Stock P/E 17.2
  • Book Value ₹ 138
  • Dividend Yield 0.81 %
  • ROCE 15.3 %
  • ROE 15.7 %
  • Face Value ₹ 2.00
  • Int Coverage 7.17
  • Sales growth 3Years -0.71 %
  • Return over 3years 35.2 %
  • Debt to equity 0.33
  • EPS ₹ 21.6

Another Good Compounder Stock at this price can be a gem in your portfolio.

Best Buy @ 346-352 ; TGT 550 SL 315

Gem 4

 Selan Exploration Technology Ltd.

CMP 150.50

Oil & Gas exploration with Government of India (GOI) for Bakrol, Lohar, Ognaj, and Karjisan fields.

  • Market Cap ₹ 229 Cr.
  • High / Low ₹ 180 / 113
  • Stock P/E 32.2
  • Book Value ₹ 217
  • Dividend Yield 3.32 %
  • ROCE -2.18 %
  • ROE 1.02 %
  • Face Value ₹ 10.0
  • Int Coverage 44.8
  • Sales growth 3Years -14.0 %
  • Return over 3years -6.82 %
  • Debt to equity 0.00
  • EPS ₹ 4.68

Expect a good couple of years for oil exploration business and scope for PE expansion.

Expect the price to touch 220; SL 111.

Gem 4

Jash Engineering Ltd

CMP 484.00

Water and Waste Water Pumping Stations and Treatment Plants, Storm Water Pumping Stations, Water Transmission Lines, Power, Steel, Cement, Paper & Pulp, Petrochemicals, Chemical, Fertilizers, and other process plants.

  • Market Cap ₹ 574 Cr.
  • High / Low ₹ 628 / 220
  • Stock P/E 19.8
  • Book Value ₹ 124
  • Dividend Yield 0.00 %
  • ROCE 21.0 %
  • ROE 21.6 %
  • Face Value ₹ 10.0
  • Int Coverage 4.80
  • Sales growth 3Years 19.7 %
  • Return over 3years 69.6 %
  • Debt to equity 0.58
  • EPS ₹ 24.4

Right time to Enter

Expect 775 by June22; SL 411

 

Gem 5

Jayant Agro-Organics Ltd.

CMP 224.50

Manufacturing and trading of castor oil and its derivatives such as oleochemicals.

  • Market Cap ₹ 675 Cr.
  • High / Low ₹ 324 / 118
  • Stock P/E 8.81
  • Book Value ₹ 140
  • Dividend Yield 0.44 %
  • ROCE 16.2 %
  • ROE 13.6 %
  • Face Value ₹ 5.00
  • Int Coverage 7.35
  • Sales growth 3Years -13.7 %
  • Return over 3years 0.77 %
  • Debt to equity 0.59
  • EPS ₹ 25.5

Expect +20% rise over next 2months

Target 290; SL 194 closing basis

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