5Gem

5 Gems #17

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 Biocon Ltd and LG Balkrishnan & Bros.

Linde, Linc and Kaveri Seeds as torch bearers.

Gem 1

Biocon Ltd

CMP 376.45

It has the largest bio-similar pipelines comprising 28 molecules to be launched over the next decade.

Only Indian company to get FDA approval for 3 bio-similar molecules.

  • Market Cap ₹ 45,275 Cr.
  • High / Low ₹ 425 / 315
  • Stock P/E 64.6
  • Book Value ₹ 65.7
  • Dividend Yield 0.00 %
  • ROCE 10.3 %
  • ROE 10.2 %
  • Face Value ₹ 5.00
  • Int Coverage 12.7
  • Sales growth 3Years 19.9 %
  • Return over 3years 3.99 %
  • Debt to equity 0.60
  • EPS ₹ 5.52

Good Dec’21 YOY Quarter results.

Stock maintains a PE 65 during the last few years.

After it fell Support Line of 370, it is back to regain range above 370 that can over a year lead to 650.

Gem 2

Kaveri Seed Company Ltd

CMP 565.60

Kaveri Seed is among the largest crop producers in India, with presence across 22 states spanning, 12 Agro-climatic Zones of India.

  • Market Cap ₹ 3,300 Cr.
  • High / Low ₹ 817 / 469
  • Stock P/E 16.0
  • Book Value ₹ 228
  • Dividend Yield 0.71 %
  • ROCE 25.5 %
  • ROE 24.9 %
  • Face Value ₹ 2.00
  • Int Coverage 832
  • Sales growth 3Years 8.45 %
  • Return over 3years 0.66 %
  • Debt to equity 0.00
  • EPS ₹ 34.2

Critical Year nearing May2015 Revenues.

Have done well to come out from the mayhem of May2015.

Early Entry at CMP 565 and review. Stay longer once above 700 again till 1075 (ATH Jun’15).

Gems 3

LG Balakrishnan & Bros Ltd

CMP 709.00

The company has a 75% market share in automotive chains in the Indian 2-wheeler industry.

  • Market Cap ₹ 2,214 Cr.
  • High / Low ₹ 715 / 278
  • Stock P/E 10.9
  • Book Value ₹ 310
  • Dividend Yield 1.42 %
  • ROCE 19.6 %
  • ROE 16.8 %
  • Face Value ₹ 10.0
  • Int Coverage 36.6
  • Sales growth 3Years 4.31 %
  • Return over 3years 20.1 %
  • Debt to equity 0.07
  • EPS

Undergoing Scalability and PE Expansion till touches PE 20 over next 1-2 years.

Hold for Long Term.

Short Term expecting 900 by June 22 and 1300 by Dec 22.

Gem 4

Linc Ltd

CMP 290.00

It is an Indian stationery manufacturing company. Engaged in business of Ball Point Pens.

  • Market Cap ₹ 435 Cr.
  • High / Low ₹ 302 / 137
  • Stock P/E 59.8
  • Book Value ₹ 92.1
  • Dividend Yield 0.00 %
  • ROCE -0.63 %
  • ROE 0.05 %
  • Face Value ₹ 10.0
  • Int Coverage 5.53
  • Sales growth 3Years -8.62 %
  • Return over 3years 4.90 %
  • Debt to equity 0.03
  • EPS ₹ 4.90

Among the few companies, who during the Pandemic seems to have reduced their Borrowings over the last two FY’s out of the probability of excess liquidity.

Hoping the company would normalize operations with an expected EPS of 10, PE 50 Target 500 by Dec22.

Gem 5

Linde India Ltd

CMP 2790.90

Linde India Limited, formerly BOC India Limited, is engaged in the gas business.

  • Market Cap ₹ 23,660 Cr.
  • High / Low ₹ 2,947 / 886
  • Stock P/E 91.3
  • Book Value ₹ 299
  • Dividend Yield 0.11 %
  • ROCE 10.4 %
  • ROE 6.83 %
  • Face Value ₹ 10.0
  • Int Coverage 139
  • Sales growth 3Years -10.2 %
  • Return over 3years 61.9 %
  • Debt to equity 0.00
  • EPS ₹ 58.4

Later review on better Qtrly results.

Short term play till 3300 to 3500 CMP 2774.00

 

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