Financial Weekly
28th Nov. 2021 to 4 th
Dec. 2021 17
RESEARCH REPORT
Last week, we recommended DYNAMIC CABLES as Smart Research Report stock.
During the week we saw heavy selling in the market but stock made a high of 95.25
from 75.95 and recorded almost 25% appreciation during a highly negative market.
CORDS CABLE INDUSTRIES
(532941 & NSE) (49.65) (Face Value Rs.10)
Cords Cable Industries Limited Particulars Half Year Ended
(CORDS) is a specialized Control & In- H1FY22 H1FY21 % Var.
Sales 194.36 132.41 46.78
strumentation cable company offering
PBT 4.02 1.78 125.84
wide range of cable products to multiple PAT 2.97 1.12 165.17
industries. CORDS has over 3 decades of rich experience and enjoys a strong brand image
in the B2B segment. CORDS designs, develops and manufactures a varied range of Power,
Control, Instrumentation, Thermocouple Extension / Compensating and Communication cables.
The company's state of the art manufacturing plants are located in Rajasthan at 2 locations.
Company's current capacity stands at ~65,000 Kms p.a. spread across 2 manufacturing
facilities in Rajasthan. Chopanki unit has a capacity of ~30,000 Kms p.a. while Kahrani unit
has a capacity of ~35,000 kms p.a. The cables cater to various areas which include oil &
gas, hydrocarbons, airports, railways, metro rail, smart cities as well as power sector.
It has an equity base of Rs.12.93 crore that is supported by reserve of Rs.135.80 crore.
The Promoters hold 51.64% while the investing public holds 48.36% stake in the company. It
has a share book value of Rs.115 & price to book value ratio is just 0.43x which is impres-
sive and lowest against peers.
For Q2FY22, PAT jumped 52% to Rs.1.52 crore from Rs.1 crore in Q2FY21 on 27.06%
higher sales of Rs.105.98 crore fetching an EPS of Rs.1.19. During H1FY22, its PAT rose
165.17% to Rs.2.97 crore from Rs.1.12 crore in H1FY21 on 46.78% higher sales of Rs.194.36
crore fetching an EPS of Rs.2.32.
Currently, the stock trades at a P/E of 10.35. Its recent high rate was Rs.153.95 which
was formed on 6th November 2017. Stock is available at 68% lower levels from its recent
high level.
On account of strong fundamentals and robust technical, it is likely to achieve decent
levels in 9-12 months. Keep stop loss of Rs.43 for your buying.
Financial Weekly
28th Nov. 2021 to 4 th
Dec. 2021 24
SMART
BUY OF THE WEEK
Dark Horse
Dark Horse-1
SUTLEJ TEXTILES & INDUSTRIES LTD
(532782 & NSE) (83.90) (Face Value Re.1)
Sutlej Textiles and Industries Limited Particulars Half Year Ended
(STIL), an ISO 9001:2015 certified Com- H1FY22 H1FY21 % Var.
Sales 1372.79 657.47 108.80
pany, is one of India's largest spun dyed
PBT 167.31 -11.01 -
yarn manufacturer part of the K K Birla PAT 62.07 -42.95 -
group. Under the leadership of Mr. C. S. Nopany, Executive Chairman of STIL, a Char-
tered Accountant and Master of Science in Industrial Administration from Carnegie
Mellon University, the Company has focused on value added yarns and home textiles.
Over the years, the Company has also successfully carved out a niche for itself and is
holding leadership position in the dyed yarn and cotton mélange yarn segment. The
total spinning capacity of the Company presently stands at 420,384 spindles.
With an equity capital of Rs.16.38 crore and reserves of Rs.995.84 crore, STIL's
share book value works out to Rs.61.80 & stock traded at P/BV of just 1.36x. The
promoters hold 63.96% of the equity capital which leaves 36.04% stake with the invest-
ing public.
For Q2FY22, STIL reported PAT of Rs.41.68 crore as against LOSS of Rs.4.72
crore on 68.80% higher sales of Rs.786.05 crore and an EPS of Rs.2.54. During H1FY22,
it reported PAT of Rs.62.07 crore as against LOSS of Rs.42.95 crore on 108.80%
higher sales of Rs.1372.79 crore and an EPS of Rs.3.79. Currently, the stock trades at
a P/E of just 13.6x. It paid 30% dividend for FY21.
Investors can accumulate this stock with a stop loss of Rs.70. It may give very
good returns in medium to long term.
Cont...
Financial Weekly
28th Nov. 2021 to 4 th
Dec. 2021 25
Dark Horse-2
ALKALI METALS LTD
(533029 & NSE) (90.90) (Face Value: Rs.10)
Alkali Metals is one of the leading Chemi- Particulars Quarter Ended
cal suppliers in India and USA for indus- Q2FY22 Q2FY21 % Var.
trial and specialty chemicals, raw materi- Sales 25.39 11.74 116.27
Op. Profit 4.66 1.88 147.87
als and minerals. Alkali Metals manufac-
PAT 3.19 0.07 4457.14
tures variety of products ranging from Al-
kali Metal Derivatives, Amino Pyridines, Tetrazoles, Cyclic compounds and Fine chemicals.
Company also provide Sodium metal along with other chemicals, APIs and raw material
additives for manufacturers in diverse industries.
It has an equity base of Rs.10.18 crore that is supported by reserves of around Rs.40.70
crore. The promoters hold 69.64%, while the investing public holds 30.36% stake in the
company.
During Q2FY22 it has reported fantastic numbers. For Q2FY22, AML posted 4457.14%
higher PAT of Rs.3.19 crore on 116.27% higher income of Rs.25.39 crore and an EPS of
Rs.3.20. During H1FY22, it recorded PAT of Rs.2.46 crore against loss of Rs.0.76 crore on
58.78% higher income of Rs.38.87 crore fetching an EPS of Rs.2.29.
Stock is looking highly attractive at CMP for an investment purpose. Investors can
accumulate this stock with a stop loss of Rs.80. It may give very good returns in
medium to long term.
Past review of Smart Buy of Week
“Smart Dark Horse” in negative market
Recomm. Date Stocks Recomm. Achieved Appreciation
Rate Rate (%)
4th Oct 21 AGAR IND 339 439 29%
25th Oct 21 ARO GRANITE 65.6 80.55 23%
DIWALI 2021 PRAVEG COMM 116.1 133.6 15%
Last Week M K EXIM 90.65 115.55 27%
Financial Weekly
28th Nov. 2021 to 4 th
Dec. 2021 42
Investment Ideas telegram.me/rupeegains7
Last week, we recommended Alpa Laboratories. During the week we saw
heavy selling in the market but stock made a high of 64.30 from 52.80 and
recorded almost 22% appreciation during a highly negative market.
NIFTY
For next week NIFTY has strong support around 16935 levels. Break will take it to 16765---
16720 levels. On the upper side NIFTY will face strong hurdle at 17225 levels, cross over with
volume and close above will create short covering at take NIFTY up to 17370 levels…
BANK NIFTY
For next week BANK NIFTY has strong support around 35720 levels. Break will take it to 35360-
--35050 levels. On the upper side BANK NIFTY will face strong hurdle at 36400 levels, cross over
with volume and close above will create short covering at take BANK NIFTY up to 36750---37100
levels…
INVESTMENT IDEAS
H P COTTON TEXTILE MILLS LTD
(502873) (112.80) (Face Value Rs.10)
Established in 1981, H P Cotton Textile Mills is a former, Dora Group Company - one of the
leading textile groups of the country, specialises in manufacturing cotton yarns and threads. HP
Threads is a popular brand of products from HP Cotton Textile Mills Limited, one of largest export-
ers of cotton specialty yarns and cotton sewing threads from India. The company has a strong
market reputation for its high-quality products, and this is evident from the fact that they are ex-
ported to over 63 countries worldwide.
It has an equity base of just Rs.3.81 crore that is supported by reserves of around Rs.24.18
crore. The Promoters hold 63.87% while the investing public holds 36.13% stake in the company.
For Q2FY22, HPCTML reported 433.33% higher PAT of Rs.2.72 crore as against PAT of Rs.0.51
crore on 35.34% higher sales of Rs.33.51 crore and an EPS of Rs.7.14. During H1FY22, it re-
ported 297.89% higher PAT of Rs.5.65 crore as against PAT of Rs.1.42 crore on 52.88% higher
sales of Rs.64.44 crore and an EPS of Rs.14.82. Currently, the stock trades at a P/E of just 5.5x.
Stock is already corrected 20% from recent high. Everyone, whose financial advisor is allowing to
trade in this stock for medium to long term can watch with stop loss of 95.
Disclosures: At the time of writing this article, author, his clients & dependent family members may have
positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family
members may make purchases or sale of the securities mentioned in website. Author may have positions in
above stocks so have vested interest obviously in their going up or down as the case may be.
Disclaimer: Investing in any equity is risky. Our recommendations are based on reliable & authenticated
sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Inves-
tors should take their own decisions. We assume no responsibility for any transactions undertaken by them.
The author won't be liable or responsible for any legal or financial losses made by anybody.
Financial Weekly
28th Nov. 2021 to 4 th
Dec. 2021 43
Primary Market - Dilip K. Shah
Secondary Market under dark clouds, while Primary Market witness full spring
Share Market Vs IPO markets: Bear grips secondary market, bull rides primary market
Calendar year 2021 creates a history in terms of listing and number of IPOs: Many new records set
Out of 09 companies listed in November 04 are in discount: Latent View gave 282% returns
This week two mainboard, 1 BSE SME and 9 Rights issues are in the market
Star Health's issue with offer price of Rs. 870-900 will open on November 30: Lacks fancy
Tega Ind's issue with offer price of Rs. 443-453 will open on December 1: will get attraction
Allotment declared in Go Fashion: Vibrant listing expected on November 30
Latent View's IPO got listed with 169% premiums: Crosses Rs. 700 level after listing
Tarsons Prod's issue got listed with 4% premiums at Rs. 662 but went up by 21% after listing
The Indian Share Markets are under dark clouds for the 2nd week in November with Sensex
eroding by 1650 points and Nifty by 133 points in the 3rd week and 2528 points and 738 points
respectively in 4th week taking total losses of 4178 points and 871 points in the month.
However, the primary market is not affected by it as the investors are getting good premiums on
listing of IPOs.
In short, Secondary Market and Primary Market are moving in opposite directions.
* Calendar Year 2021 leads in IPO and Listing among many other things :- Calendar year
2021 has turned out to be a milestone for Indian Share Markets in terms of historic level of Sensex
and Nifty, Market Cap, Number of IPOs and listing at premiums. Till now, 53 IPOs have entered the
Cont...
Grey Markets Premium
IPOs Offer Price Premium Kostak Price Subject to
Name (Rs.) (Rs.) *Min. Appl. Sauda
Go Fashion 655 to 690 480 - 490 -- --
Star Health 870 to 900 18 - 20 -- --
(Seller)
Tega Ind. 443 to 453 225-230 -- --
(Buyer)
Adani Wilmar -- 150 to 160 -- --
Don't subscribe IPO only on the basis of Grey premium.
Before Investing check the fundamentals of IPOs
