5Gem

5 Gems #8

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

The portfolio is built around FMCG stocks Colgate and Hindustan Foods with faith in ONGC for Crude and LIC Hsg for Housing Finance. A stable niche business Advanced Enzyme is picked as available at a lucrative price for the long term.

Gem1

Colgate-Palmolive (India) Limited

CMP 1734.45

  • Market Cap: ₹ 47,203 Cr.
  • Current Price: ₹ 1,736
  • High / Low: ₹ 1,823 / 1,322
  • Stock P/E: 44.1
  • Book Value: ₹ 42.9
  • Dividend Yield: 2.19 %
  • ROCE: 92.0 %
  • ROE: 75.1 %
  • Face Value: ₹ 1.00
  • Int Coverage: 206
  • Sales growth 3Years: 4.95 %
  • Return over 3years: 16.2 %
  • Debt to equity: 0.08
  • EPS: ₹ 39.4

Technical Call: It tested the earlier Nov19 ATH 1642.00 in Aug21, with a Low 1626.30 and now may see a 2244 (+30%) from here in the next six months.

INVEST CMP 1734.45.00

TARGET:

1947 3mths

2244 6mths

Gem 2

Hindustan Foods Ltd(NDA)

CMP 2045.00    { NSE:HNDFDS }

About:

Hindustan Foods Limited is engaged in contract manufacturing of various FMCG products including food, home care, personal care, beverages etc.

  • P/E: 100
  • BV: ₹ 106
  • FV: ₹ 10.0
  • Int Coverage: 4.17
  • Debt/Equity: 0.96
  • Sales YOY 3Years: +115 %

PE 100 better than average FMCG sector is due to better scalability. Plus Sales Growth 3yrs +115% better than any FMCG itself

Invest CMP 2045.00

TARGET:

  • 2579 3 months
  • 3003 5 months
  • 3426 9 months

SL 1414

Gem 3

Oil & Natural Gas Corporation Limited

CMP 122.15  { NSE: ONGC }

  • Market Cap: ₹ 153,668 Cr.
  • Current Price: ₹ 122
  • High / Low: ₹ 128 / 64.1
  • Stock P/E: 7.19
  • Book Value: ₹ 176
  • Dividend Yield: 2.95 %
  • ROCE: 9.95 %
  • ROE: 7.39 %
  • Face Value: ₹ 5.00
  • Int Coverage: 8.88
  • Sales growth 3Years: -1.98 %
  • Return over 3years: -10.2 %
  • Debt to equity: 0.60
  • EPS: ₹ 17.7

Price hovering around 122 at Oct2008 levels, when Crude was around the same USD 70.

Now, just about the same levels @ 122 but QE Taper can firm USD and send Crude further up. Also with Aviation Consumption normalizing, the basket of Crude may remain firm.

Invest CMP 122.15

TARGET:

  • 149 2months
  • 172 4months
  • 200 6 months

Gem 4

Advanced Enzyme Technologies Ltd

CMP 369.00 { NSE:ADVENZYMES }

  • Market Cap: ₹ 4,097 Cr.
  • Current Price: ₹ 367
  • High / Low: ₹ 504 / 217
  • Stock P/E: 27.3
  • Book Value: ₹ 86.8
  • Dividend Yield: 0.25 %
  • ROCE: 22.8 %
  • ROE: 16.1 %
  • Face Value: ₹ 2.00
  • Int Coverage: 135
  • Sales growth 3Years: 8.67 %
  • Return over 3years: 20.2 %
  • Debt to equity: 0.02
  • EPS: ₹ 13.4

Free from pandemic adversary, its business remained stable.

Earns 43% of its revenues from India, followed by Americas (42%), Europe (7%) and Rest of world (8%).

5 manufacturing facilities in India and 2 in California, USA.

5 R&D facilities, 4 in India and 1 in Germany.

Better stock to Invest if we see a downturn.

ATH 504.00 previous summit, can easily be regained from CMP 366.00

 

Invest CMP 369.00

TARGET:

  • 440 4 months
  • 597 6 months

Gem 5

LIC Housing Finance Limited

CMP 418.55  { NSE:LICHSGFIN }

Total Loan Portfolio CAGR of 12%   (over last 4 Fiscal years).

LIC Housing Finance gets Capital Infusion Rs 2,335 crore via preferential share allotment to LIC @ Rs.514.43 per share that will improve Capital Adequacy Ratio.

Company’s Yield on Advances de-grew to 9.06% last 3 years but would do well next 2-3 years.

Invest CMP 418.55

TARGETS:

  • 456 1 month
  • 529 6months
  • 675 12months

SL 349

 

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