Get started

Breakoutstocks

Jayant Agro - A Positional PickAbout the company - The Company is mainly engaged in manufacturing and trading of castor oil and its derivatives such as oleo chemicals. The group is the leading player in India for the castor oil and castor-oil based derivative products. Group has over 5 decades of experience in castor industry. Technical Parameters 1- the price gave a Breakout of Accumulation Range 2- intensity of volume is good at the time of breakout (suggests strength) 3- price looking to reach again at its all time high as monthly time frame suggests uptrend continuation 4- Price formed Flag N Pole chart pattern. 5- All the supporting indicators such as MACD, RSI, Bollinger Bands, are in good mood and suggestion longs. Trade Plan -- we can enter at Current Market Price and add when stock give some dip. -- safe traders can wait for a dip of 5-10% -- Stop loss is mentioned in chart as around 211 -- As there is a breakout of Flag N Pole Chart pattern, we can expect targets as the length of Pole which is around 550-570. Disclaimer- I am not SEBI registered. All the idea shared on this channel are for educational purpose. Consult your financial Advisor for any kind of investment. Thank you KARAN DINGRA
NSE:JAYAGROGN
by KARANN_DINGRA
3
HDFC BANK RE-ENTRY LEVELS FOR SWING TRADING 18/06/2024STOCKS FOR SWING TRADING (SHORT TERM) 18/06/2024 NO.8 #HDFCBANK Re-Entry Price - 1600 (CMP 1596) SL - 1460 TARGET - 1750, 1900, 2000 (10 - 20 - 25%) @jagadheeshjp Disclaimer : All information on this page is for educational purposes only, we are not SEBI Registered, Please consult a SEBI registered financial advisor for your financial matters before investing And taking any decision. We are not responsible for any profit/loss you made.
NSE:HDFCBANKLong
by Jagadheesh_JP
BEPL giving a breakout on bounce. Bhansali Engineering Polymers Ltd. engages in the manufacture and sale of acrylonitrile butadiene styrene (ABS) and styrene acrylonitrile (SAN) resins. Bhansali Engineering Polymers CMP is 99.68. The positive aspects of the company are Company with No Debt, Company with Zero Promoter Pledge, Growth in Operating Profit with increase in operating margins (YoY) and MFs increased their shareholding last quarter. The Negative aspects of the company are Companies not able to generate net cash. Entry can be taken after closing above 100. Targets in the stock will be 103, 106 and 109. The long-term target in the stock will be 113 and 117. Stop loss in the stock should be maintained at Closing below 88. The above information is provided for educational purpose, analysis and paper trading only. Please don't treat this as a buy or sell recommendation for the stock. We do not guarantee any success in highly volatile market or otherwise. Stock market investment is subject to market risks which include global and regional risks. We will not be responsible for any Profit or loss that may occur due to any financial decision taken based on any data provided in this message.
NSE:BEPLLong
by Happy_Candles_Investment
B.L Kashyap & Sons Increasing Strength Can Be Held For Long-TermB.L.Kashyap & Sons Ltd is an EPC company engaged in the business of Construction of Buildings High-Rise Residential and Commercial Complexes, IT Parks, Institutional Buildings. Total: 1,733.68 Cr Order value Company has delivered good profit growth of 71.0% CAGR over last 5 years Projects • More than three decades of rich expertise. • Completed 250 + projects and more than 140 million sq. ft. Design Build Projects • National High-Speed Railways • Sabarmati Station • DLF Downtown • Embassy Flipkart • Redevelopment of Gomti Nagar Station • Hero Honda Motor Plant • Jaipur & Chennai Metro Company coming out of CDR – Moving towards Zero Debt • In the light of global meltdown during 2010 -13 operations of BLK were impacted resulting in stress on the company • BLK entered CDR in 2014 • Currently the company has no long-term debt and has pared its consolidated debt. • Reduction of Debt from 700 to ~ 270 • Currently the company only has CC and BG limits De-risking business model – Residential to Commercial & Governmen • Company has been awarded total orders during financial year 2022-23 to the tune of Rs. 818.9 Cr • The order book closed at Rs. 2402 crore for the year ended March 31, 2023 • Orders worth approx. INR 658 crore and INR 247 crore awarded during the first and second quarter of FY2023 - 24 • Ending 30th June 2023 and the order book stood at approx. Rs. 2838 cr. • Total Order Book stands at Rs. 3005 Cr as of September 2023 • During the quarter, orders were received across multiple segments like railways, business parks, educational institutions, and residential complex Growth driven to Profitability focus • The company has planned capex of approximately INR 25 crores during FY24. Capex for FY22 and FY23 was Rs. 8 Cr and Rs. 19 Cr respectively • BLK is looking at increasing its footprint in the infrastructure space related to its core business, which is high quality structures and their associated works.
NSE:BLKASHYAPLong
by iism-ExpertTrading
EID PARRY INDIA Freshly Broken 83 Weeks HighCompany has delivered good profit growth of 41.5% CAGR over last 5 years Company has been maintaining a healthy dividend payout of 19.7% Expected diversion for Ethanol in SY 2023-24 is ~ 20LMT of Sugar (against 38LMT diverted in SY 2022-23). Overall blending is 12% as of March’24. E20 petrol is available at 12,000 fuel retail outlets and the government targets a pan-India rollout by 2025. Syrup/B Hy diversion to Ethanol restricted from 7 th Dec 2023 and subsequently on 15th Dec 2023, allowed 17 LMT of Sugar diversion (as B Hy) across the country. Additional 10LMT has been allowed in April’24 for supply in Q3 of FY’25. Maximize and grow the Refined / Pharma Sugar Business • Health and wellness segment has been identified to focus on specialty sweetener business • Focusing on Brown sugar and Jaggery as alternate sweetener • To become a sweetening solutions provider for B2B Customers 1. Packaged staples has a large Total Addressable Market (TAM) of ~ INR 9 L Cr • Highly unorganised with only a few pan-India players 2. Overall branded penetration is less than 20%. • Significant growth expected with consumers preferences shifting towards branded products • Coincides with India’s overall growth and expansion of the consumption class 3. Parry’s brand presence and the strong foundation laid through the sweeteners to be leveraged • To further build on the capability to ‘brand the unbranded’ 4. Aspiration to capture >10% of the kitchen shelf in every household in South India The Company made a pioneering leap towards community water resource management projects through its flagship Project NANNEER • Under the first phase, seven lakes and ponds in Oonaiyur area (Pudukkottai and Sivagangai district in TN) were desilted across 250 acres (depth of 1-3 meter) • Under the second phase, twelve lakes and ponds (in the Cuddalore, Tiruppur, Villupuram and Erode districts in TN) were desilted across 127 • The excess desilted soil was utilized to create islands in each of the water bodies. Close to 1100 Million Liters were conserved in Phase 1 and 2. • Currently third phase being planned in TN, KN and AP. • The Company aims to achieve Ten Billion liters of water holding capacity through Project NANNEER by the end of 2026. Increase in Cash Fixed Cost in FY’24 majorly due to: • Manpower capability building for project expansion and new business • CPG infrastructure building • Special repairs undertaken in major plants Lower cane volume by 1.7 LMT over last year further contributed to the increase in CFC/MT Increase in cane cost, drop in recovery & yield due to climatic conditions, restriction in sugar diversion for ethanol has led to drop in EBITDA. The benefits on expansion of distillery capacities are expected to flow in FY’25
NSE:EIDPARRYLong
by iism-ExpertTrading
Pacific Industries Ltd Looking Good After Long CorrectionLooking Good For Long-Term Holding . Good Fundamentals and Business Model Stock is trading at 0.34 times its book value CMP @ 215.30 AND BOOK VALUE @ 629 Quarterly Results Out as..... Item YOY Mar 2024 Sales ⇡ 47% 59.6 EBIDT ⇡ 309% 5.34 Net profit ⇡ 186% 4.72 EPS ⇡ 187% ₹ 6.85 Positive factors • Sustained Improvement in scale of operations marked by total operating income (TOI) above Rs.350 crore along with PBILDT margin above 13% on sustained basis. • Improvement in working capital cycle below 100 days. Key strengths Experienced and qualified management with strong group presence Mr. Jagdish Prasad Agarwal, Chairman and Managing Director of PIL, has more than three decades of experience and looks after overall affairs of the company. He is assisted by Mr. Kapil Agarwal, Executive Director, who has around 13 years of experience in the industry. Further, the promoters are supported with the experienced second-tier management. The company belongs to Udaipur based Geetanjali Group and group concerns include Ojaswi Marbles and Granites Private Limited, Geetanjali Marble, Krishna Marble, Pacific Exports, Pacific Leasing and Research Limited, Yash Processors Private Limited, Pacific Iron manufacturing Limited, Chaitanya international Mineral LLP and Geetanjali University. As per the clarification submitted by PIL to stock exchange on February 21, 2023, Income Tax department has conducted inquiry under section 132 and 133 of Income Tax Act, 1961 from February 16, 2023, to February 21, 2023. As conveyed by PIL’s management to CARE Ratings, there have been no material findings from the inquiry conducted so far. As per disclosure made to stock exchange, PIL will update stock exchange on material information of event, if any. CARE Ratings shall however continue to monitor the developments of the case and its impact, if any on the credit profile of PIL. Established track record of operations and diversified product portfolio PIL was incorporated in the year 1989 and has a track record of more than three decades in the industry having established relationship with its customers and suppliers. The company majorly exports its products to USA, Europe, Indonesia, Vietnam as well as Middle East countries. Over the years, PIL has received various awards and certification, such as “Star Export House” certification from the Ministry of Commerce and Industry, certificate of life member of All India Granite and Stone Association. It also has membership of Centre for Development of Stones and Confederation of Export Unit. Further, the company offers diversified products which includes variety of North Indian and South Indian granites in different styles, color, size and pattern etc. Further, it has flexibility to manufacture different varieties of quartz slabs by blending resins with quartz and other key materials to get slabs with desired colour, hardness and durability. Location advantage with ease of availability of raw material and labour PIL’s processing facility of granites is situated in Rajasthan and Karnataka which has the largest reserve of marbles & granites in India with estimated reserves of 2075.64 crore cubic metres accounting of more than 91% of the total marble reserves of the country. There are many units located in the cities of Rajasthan, Karnataka and Andhra Pradesh which are engaged in the business of mining and processing of marbles and granites. Further, skilled labour is also easily available by virtue of it being situated in the marble & granite belt of India. Moderate profitability albeit moderation in scale of operations PIL’s Total operating income (TOI) declined by 35% y-o-y to Rs. 184.11 crores as against Rs.285.40 crore in FY22. The decline was on account of decrease in quartz sales due to levying of anti-dumping duty in July 2022 by U.S. Department of Commerce and no sales from trading of iron ore in FY23. The anti-dumping duty was subsequently reversed in January 2023. In 9MFY24, PIL achieved sales of Rs. 134.93 crores. PBILDT margin of PIL moderated by 322 bps to 7.55% in FY23 as against 10.46% in FY22 on account of higher raw material cost as well as lower absorption of overhead costs. However, in 9MFY24, PBILDT margin improved to 13.94% on the back of lower manufacturing expenses. Comfortable capital structure albeit moderate debt coverage indicators The capital structure of PIL improved with overall gearing of 0.43x as on FY23 end (1.25x in FY22). Improvement in overall gearing was on account of successful completion of rights issue of Rs.47.53 crore in February 2023 which resulted in augmentation of networth base as well as reduction in o/s debt with repayment of USL from directors/ subsidiaries and repayment of working capital borrowings. The debt coverage indicators however continued to remain moderate in FY23 due to lower profitability with PBILDT interest coverage of 1.72x (4.50x in FY22) and total debt/ GCA of 5.53x (6.20x in FY22)
BSE:PACIFICILong
by iism-ExpertTrading
1
COAL INDIA HAVE BROKEN & SUSTAINED ITS PREVIOUS ALL TIME HIGHPREVIOUS STUDY SHARED ON 06 MAY 2024 .... Company is almost debt free. Stock is providing a good dividend yield of 5.11%. Company has a good return on equity (ROE) track record: 3 Years ROE 51.8% Company has been maintaining a healthy dividend payout of 51.8% New Projects 9MFY24 1 Environmental Clearance : EC has been obtained for 14 Proposals (Incremental EC Capacity of 9.85 MTY). 2 Forest Clearance : 1 proposal of wild life clearance (121.58 Ha) has been secured. 3 CIL has approved 5 Coal Mining Projects with a total capacity of 60.04 MTY and incremental capacity of 33.24 MTY. Solar Power Generation Aim to set up 3GW capacity of solar power projects to become net-zero by FY 25-26. CIL intends to add another 2 GW of renewable energy, aiming for a total installed capacity of 5 GW.CIL is also participating in PAN-India Solar tenders of GUVNL, SECI etc to achieve the target of 5 GW. CIL has entered in an MOU with Rajasthan Rajya Vidyut Utpadan Nigam Ltd to develop Solar Power Project at Solar Park in Rajasthan.
NSE:COALINDIALong
by iism-ExpertTrading
HARSHA ENGINEERS INTERNATIONAL LTDCompany is almost debt free. Company has delivered good profit growth of 56.4% CAGR over last 5 years The combined share of operating losses at China and Romania came down significantly because of China reporting positive profit in Q4 FY 2024. However, Romania continued to report operating losses in Q4 FY 2024. ➢ While the demand situation in Europe both on the Wind as well as on the Industrial front remains subdued, our strategy in Romania is to improve product mix by increasing the share of cages, which is aimed at bringing Romania to Break-even level in FY 2025. ➢ Solar Business has reported a decent growth in top-line as well as profitability, on the back of a favourable renewable policy regime, with our strategy continued to be on limited capital allocation in this segment, but still allowing the same to operate in its natural tangent. ➢ The progress on our Greenfield project is satisfactory and is expected to commission in FY 2025. On a consolidated basis Q4 FY 2024 was the strongest quarter in the current fiscal FY 2024 reflecting an allround improvement in the top line as well as the EBITDA and PAT margins. The consolidated top line of Q4 FY 2024 has shown a growth of 17% over Q3 FY 2024 and 11% over Q4 FY 2023. The consolidated EBITDA of Q4 FY 2024 has also grown by 23% as compared to Q3 FY 2024 and 10% as compared to Q4 FY 2023. ➢ On full year basis, while consolidated top line of FY 2023-24 reflects a marginal growth over FY 2022-23, the EBITDA and PAT of FY 2024, though lower than FY 2023, are still reflecting a significant recovery as compared to H1 FY 2024 and are better than our expectations. ➢ The growth in Bushing business as well as additional demand growth due to China + 1 factor was in line with our expectations. The Progress on outsourcing projects (insourcing to outsourcing) was satisfactory, and the growth in Japan based customers’ segment, though slightly muted, has remained positive. ➢ The expected growth in large size bearing cages segment could not be achieved due to continued global slowdown in the Wind as well as Industrial Segment, but is expected to catch up next Fiscal.
NSE:HARSHALong
by iism-ExpertTrading
Shipping Corporation Of India Showing Expected Up-Side MomentumCompany has reduced debt. Company has delivered good profit growth of 24.4% CAGR over last 5 years Strengths Long track record of operations along with diversified business segment SCIL is one of the largest shipping companies in India with an operational track record of around six decades. It benefits from the experienced management of qualified professionals and nominees of GOI. The long track record has helped them establishing relationships with major PSUs in India like IOCL, HPCL, BPCL, ONGC, etc. The company have diversified business segments which includes crude oil/product tankers, dry bulk, offshore services, and container operations, and has a presence in passenger vessels, chemicals, and gas transportation. SCIL currently has the largest fleet size of 59 vessels; a relatively younger fleet, with an average age of around 11-12 years which helps them in getting better charter rates and achieving higher operating efficiency. Vessels on behalf of third parties, primarily Public-Sector Units (PSUs)/Government Departments/Union Territories are also managed for service income. Currently, SCIL are managing 53 third party vessels. Acuité believes that SCIL will continue to benefit from its long operational track record and established relationship with the PSU's./b] Strategic importance to Government of India With more than six decades of operational track record, SCIL, remains strategically important to the Government of India. The company have been playing a pivotal role towards supplying vessels for the Indian Government key operations such as Mars Orbitter Mission of ISRO (Indian Space and Research Organisation) and other defence missions via agreement with DRDO (Defence Research and Development Organisation). Furthermore, SCIL have created strategic alliances with other governments such as Maldives, Andaman & Nicobar Islands for providing maritime services among islands. They have also been serving projects of national importance by partnering with ONGC and Geological Survey of India (GSI) for offshore services. Apart from that, the company deployed its container vessel on direct "India - Middle East Shipping Service" which connects East & West Coast of India with Middle East ports of Jebel Ali and Hamad and will also cater to other ports in Persian Gulf. Stable business operations The business operations of the company remained stable over the years marked by healthy growth in revenue from operations by -25% CAGR over FY21-23 period. The consolidated company achieved revenues of Rs.5794.01 Cr. in FY23 compared against Rs.4988.08 Cr. in FY22 and Rs.3698.09 in FY21. The improvement in revenue is attributable to significant improvement in liner freight indices and bulk segment due to significant improvement in charter rates. A surge in the tanker charter hire rates helped the Tanker Segment to post significant profits. The dry bulk segment is still recovering from historically bad period and loss of key cargoes such as iron ore exports from India, resulting in long non-profitable ballast legs thereby putting pressure on earnings. Although, in later parts of 2020, dry bulk trade recovered remarkably well on account of stimulus packages given by various governments and with China, the main driver of dry bulk demand, recovering quickly from COVID-19 crisis. Simultaneous occurrence of multiple factors conducive for the dry bulk shipping business, viz., spike in dry bulk materials demand, strong trade in grain, coal and iron ore segments, low active fleet growth maintaining tonnage balance etc. gave a good push to the dry bulk rates. Also. strong trade growth and tapering dry bulk carrier deliveries bode well for the near future. Healthy Financial Risk Profile The financial risk profile of the company remained healthy marked by strong net worth, gearing ratio and comfortable debt protection metrics. The tangible Net worth of the company stood at Rs.6902 crore in FY2023 as against Rs.5974 crore in FY2022. The debt/equity of the company improved and stood comfortably at 0.37x and 0.53x as on 31 March 2023 and 31 March 2022 respectively. The TOL/TNW of the company improved and stood low at 0.66x as on 31 March 2023 compared against 0.82 times as on 31 March 2022 respectively. The debt protection matrices of the compar mained comfortable marked by interest- coverage-ratio of 9.45x and Debt-service e ratio of 2.30x for FY2023. Acuité believes that financial risk profile of SCIL may remain strong owing to no major capex plans and stable profit accretions.
NSE:SCILong
by iism-ExpertTrading
BALAXI Pharmaceutical LTD is Showing Good Strength Can be Held Company has a good return on equity (ROE) track record: 3 Years ROE 47.3%. Debtor days have improved from 71.3 to 56.7 days. Financial Performance Commentary 6 Revenue Higher contribution from the pharmaceuticals business led to y-o-y growth of 20% in revenues for FY23 compared to FY22. The share of LATAM markets increased to 40% of pharmaceutical revenues, highlighting our ability to quickly expand geographical presence. Key contributions to growth came from recently launched operations in markets like Honduras and El Salvador that are showing stronger demand for our products apart from substantial growth in Guatemala and Dominican Republic. Our pharma business in Angola continues to generate strong cash flows that are being re-invested for expanding into new markets EBITDA During the year, operating EBITDA stood at Rs. 59.17 crore, a growth of 7.2% y-o-y. This was on account of increasing contribution from LATAM markets and expansion into newer geographies. EBITDA margin has declined by over 200 bps to 17.6% in FY23 - however, going forward with contribution from the newly entered market rising, there should be a steady rise in our margins Profit After Tax and EPS During the year, Profit After Tax stood at Rs. 45.96 crore. Earnings per Share (EPS) for the year was recorded at Rs. 45.81 compared to Rs. 47.66 in the previous year.
NSE:BALAXILong
by iism-ExpertTrading
4
#HAL just Broken and Closed Above its Previous All Time High Company has reduced debt. Company is almost debt free. Company has delivered good profit growth of 23.9% CAGR over last 5 years Company has a good return on equity (ROE) track record: 3 Years ROE 26.7% Company has been maintaining a healthy dividend payout of 29.6% Company's working capital requirements have reduced from 98.4 days to 38.2 days Strong order book providing healthy revenue visibility HAL's order book remained healthy at ₹84,814 crore as on December 31, 2023 majorly contributed by manufacturing of various models of helicopters and aircraft of around 56,569 crore to be executed over the next five to six years. Major orders in the manufacturing segment pertains to supply of 83 Light Combat Aircraft-Mk1A version (LCA), 70 HTT-40, 6 LCA 10C/FOC, 4 Dornier apart from various aerospace structures for PSLV and GSLV. The ROH order book remained healthy at 28,277 crore and is expected to remain robust in the near to medium term as HAL undertakes the repair and maintenance work of aircraft manufactured by it for its entire life as well as for aircraft manufactured by others for which it has built infrastructure across the country. Furthermore, there remains visibility of future orders with strong order pipeline wherein orders for procurement of new platforms viz. Advanced Light Helicopter (ALH), Light Utility Helicopter (LUH), Additional Su-30, AL31 FP Engines and RD-33 Engines and mid-life upgrade of D0-228 Aircraft aggregating to 55,000 crore are in the advance stage of conclusion and are anticipated to be received within next three to siz months. In addition, orders for procurement of additional 97 Nos of LCA, 156 Nos of Light Combat Helicopter (LCH), 60 Nos Utility Helicopter-Maritime (UHM) including Performance Based Logistics (PBL) Contract, among others aggregating to 158,000 crore have been approved by the Defence Acquisition Council and the orders against the same are anticipated within next 18-24 months. Given the significantly long tenure of its contracts, HAL enters into variable price contracts with its customers, Indian Airforce, Indian Army and Indian Navy, wherein the future escalation is built into the prices excluding forex fluctuation on procurement. The forex fluctuations are paid on an actual basis by the customers. This protects its margins from forex and raw material price escalation to a large extent. However, profitability may get impacted due to time or cost overrun in case there is execution delays at HAL's end. Strong financial risk profile marked by healthy profitability and cash accruals and continued improvement in its collection period HAL continues to have a sizeable scale of operations and the TOI grew y-o-y by 8% to 26,397 crore in FY23 majorly on the back of increase in revenue from repairs and maintenance services. The PBILDT margin stood healthy at 25.68% in FY23. Income tax refund of 1193 crore and ₹973 crore further supported profitability in FY22 and FY23 respectively. The company earned gross cash accruals (GCA) of ₹7,000 crore in FY23 as against 5,634 crore in FY22. Its debt coverage indicators remain strong due to low reliance on external borrowings. The revenue contribution from manufacturing activities declined in FY22 and FY23 y-o-y, as majority of the manufacturing orders were completed, and the new contracts were under manufacturing and in development phase and delivery of the same is expected to be booked in FY25 onwards. Accordingly, its income is likely to get a fillip from FY25 onwards once deliveries start for 83 LCA Mk1A in a staggered manner. In 9MFY24, HAL registered TOI of ₹15,612 crore and profit after tax (PAT) of ₹3,303 crore as against TOI of ₹14,433 crore and PAT of ₹2,970 crore registered in 9MFY23. CARE Ratings expects the profitability and debt coverage indicators to remain healthy, going forward. The total receivables of HAL continued to remain below ₹5000 crore as on balance sheet date for past two years ended FY23 as it had realised substantial payment from government in FY22. The collection period has improved from 135 days in FY21 to 64 days in FY23. HAL also receives advances from its customers against the contracts which constitutes a stable source of funding its working capital requirement. The advances stood robust at 28,981 crore as on March 31, 2023 which further increased to *32,588 crore as on December 31, 2023. Timely realisation of dues and increase in advances has resulted in continued low reliance on debt to fund its working capital requirement. The same resulted in the overall gearing ratio of almost nil as on March 31, 2023. The company has strongly articulated that going forward HAL's debt level is expected to remain low on the back of sustaining its improved collection period.
NSE:HALLong
by iism-ExpertTrading
2
#DLINKINDIA is Near to Break Previous All Time High Company has reduced debt. Company is almost debt free. Company has delivered good profit growth of 28.0% CAGR over last 5 years Company has been maintaining a healthy dividend payout of 39.8% Strengths: Established market position and strong distribution network: D-Link is the market leader in switches and wireless local area network (WLAN) products, with a significant market share. In fiscal 2019, the company introduced a series of high-end products for its enterprise business, including unmanaged long-term power over ethernet (PoE)/PoE plus switches; new generation layer 3 stackable managed switches with advance hardware and software enhancements for better performance, flexibility and ease of management; and industrial grade switches. D-Link has invested in state-of-the-art support infrastructure for both consumers and enterprises, which includes 10 D-Link-owned service centres with more than 50 experts in tier 1 cities, over 23 partner service centres with more than 40 experts in tier 2 / tier 3 cities, partner collection points in more than 105 cities and logistical support in over 190 cities. D-Link Technical Support Centres (DTSC) are manned by over 30 highly skilled engineers providing L1 to L3 support for all retail and enterprise customers. Healthy financial risk profile: Networth was Rs 363 crore as on March 31, 2023, and is expected to increase over the medium term because of steady accretion to reserves and absence of debt repayment. Return on capital employed improved to 36% in fiscal 2023 as profitability increased. In the absence of any debt-funded capex, the financial risk profile is expected to remain healthy over the medium term. Weaknesses: Exposure to intense competition and risks inherent in the networking industry: D-Link mainly operates in the home and small and medium enterprise segments of the networking industry, where profitability is lower than that in the institutional sales segment. The latter is dominated by Cisco India and other new entrants. Profitability in the retail segment is constrained by intense competition and commoditised products. Susceptibility to volatility in input price and currency: Copper, the key input for manufacturing cables is an open market commodity traded globally on exchanges, leading to volatility in its prices. Furthermore, fluctuations in currency also impact profitability, as the company imports about 30% of its traded products. Complete and immediate passing on of cost increases is difficult given the competitive pressure. The company experiences lag of 45-60 days in passing on price hikes. Hence, the operating margin will remain susceptible to fluctuations in raw material prices and currency. D-Link hedges currency exposure up to 70% of the total exposure by entering forward contracts. Liquidity: Adequate Cash accrual, expected at Rs 65-75 crore in fiscals 2024 and 2025, will support liquidity in the absence of any capex or debt obligation. Unutilised bank limit of Rs 10 crore will be adequate to fund the company’s fixed expenses. Cash surplus is expected to remain healthy over the medium term.
NSE:DLINKINDIALong
by iism-ExpertTrading
#GOACARBON Company has reduced debt. Company has a good return on equity (ROE) track record: 3 Years ROE 35.2% Extensive experience, reputed clientele and established t rack record of operations in the CPC segment GCL is a part of Dempo Group, which was established in 1941. The group has diversified operations with a presence in Iron Ore mining and exports, Construction, Publishing, Ship Building, Travel and Trade, among others. GCL has more than five decades of track record in the production of CPC and hence has an established market position amongst the leading producers of CPC in India. The chairman of the company, Mr. Shrinivas Dempo has an extensive experience of over three decades in the industry. GCL caters to reputed companies among the Aluminium Industry, Graphite Industry and Steel Industry which includes Hindalco Industries Limited (HIL), Vedanta Aluminium Limited (VAL), The Kerala Minerals and Metals Limited (KMML), Steel Authority of India Ltd (SAIL) to name a few. GCL has also healthy relations developed over a decade with the various global raw material suppliers such as Kuwait Petroleum Corporation, Oxbow Carbon & Minerals LLC, Mitsubishi Corporation Limited among others. Acuité believes that the established position in the industry and healthy relations with both customers as well as suppliers will help the company to maintain a stable business profile in the CPC segment. Improvement in business risk profile The business risk profile of the company witnessed improvement reflected by growth in revenues during FY2023 and 9MFY2024. The revenue from operations of GCL improved to Rs. 1364.36 Cr. in FY2023 against Rs. 766.12 Cr. in FY2022. Further, the revenues during 9MFY2024 stood in similar range at Rs. 606.42 Cr. The surge in the demand of aluminium while tightening of its supply marked by geo-political issues and consequent sanctions on Russia, which contributes almost 6 percent of the global aluminium supply, has resulted in an implicit effect on the pricing of CPC. The average selling price of the CPC during FY20-21 stood at around Rs. 22,000 per metric tonne which grew to Rs. 42,000 per metric tonne in FY21-22, while as on 9MFY23 the average selling price stood as high as Rs.77,000 per metric tonne. Acuité believes that GCL’s operating performance is susceptible to the changes in pricing of CPC and the same will remain critical for its future growth.
NSE:GOACARBON
by iism-ExpertTrading