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
