5Gem

5 Gems #4

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

 

Bayer Crop, Alphageo and CESC may provide swift run up while Esab and Kanto could be the defensive stocks.
 

Gem 1

Bayer Crop Science Ltd

Weekly Chart CMP 6092.00

  • Face Value:10
  • Book Value: 567
  • PE: 55.8
  • EPS: 109

A Stable business which market revisited and adjusted valuation from a low 2995 (Mar20) to new ATH 6601.25 (Sept20).

Thereafter, the stock corrected to a low of 4921 in Mar21 and is gathering momentum.

The 6-Monthly Chart suggests, Retest is over too as below:

Next round of valuation upside with a steady performance as is always, is expected in range 7600-8200 in next three months with 2nd Quarter results announced by end of Oct21.

June Quarter YOY over last 3 years has improved suggesting scope for further appreciation to maintain the historic PE average Levels.

INVEST CMP 6081 TGT 7600 / 8200 in next 3 months.

Gem 2

Alphageo (India) Ltd

Weekly Chart CMP 337.00

  • Face Value: 10
  • Book Value: 413
  • PE: 6

Low PE is the lucrative point here offering better valuation.

Stock is cyclical to healthy Crude prices at the moment, that gives boost to services been hired. One can look for Short Term gains.

INVEST CMP 337.25 TGT 494 6-Months SL 295.

Gem 3

Everest Kanto Cylinder Ltd

Weekly Chart CMP 100.10

  • Face Value: 2
  • Book Value: 56
  • PE: 10
  • EPS: 13

 

An improved performance since the low in pandemic Quarter June20.

The company probably has benefited more from pandemic than could have been thought otherwise.

 INVEST CMP 100.10 TGT 126 2-3 Months SL 89

Gem 4

Esab India Limited

Weekly Chart CMP 1926.00

  • Face Value: 10
  • Book Value: 168
  • PE: 41

Stock fell to Low of May21.

Assured that in the coming Quarter Jun21, could be better market as stock regained to date till 2022.

It can further rise till 2391 / 2540 Levels on resumption of consumption demand for industrial consumables on which it is dependent for revenues.

Historically, the company always enjoyed High PE and that not be a worry as it is Top of the Line Consumables Brand and is very similar in nature to defensive FMCG sector.

Stock may not erode much of your Portfolio Value in downtrend markets.

INVEST CMP 1926.00 TGT 2391 / 2540 3-6 Months SL 1749

Gem 5

CESC Ltd

Weekly Chart CMP 781.00

  • Face Value: 10
  • Book Value: 745
  • PE: 7.44

A Technical Call in Power sector that offers a swift run as a positional trade.

INVEST CMP 781.00 TGT 961 / 1017 3-6 Months SL 702 .

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