Please remember, these are not recommendations/ suggestions to buy or sell. Strictly for educational purpose the Indian Economy & Market Research Team has collected these details from the public domain for our subscribers as these couldn’t be a part of our regular monthly magazine.
Rashtriya Chemicals & Fertilizers Ltd. was discussed here in detail in the issue released on January 31. The new development is that Russia, which produces 13 per cent of world’s total output, has suspended fertilizer export. Certainly it will have global impact on prices benefitting Indian companies. Due to this reason last week all fertilizer stocks were up. RCF has come out with impressive Q3 numbers clocking 81 and 45 per cent increase in its sales and profit respectively. On 9 months basis its sales and profit were up by 45 and 111 per cent respectively. Paying a handsome dividend year after year it also has 800 acre land parcel in Mumbai valued more than Rs 10,000 crore which is almost double its market cap.
Dalmia Bharat Rashtriya Chemicals & Fertilizers has five plants with total sugar cane crushing capacity of 36,500 TCD, distillery capacity to 305 KLPD and 119 MW power plant. The company is expanding its distillery capacity by another 285 KLPD making it almost double. On 9 months basis its operating profit and net profit were up by 58 and 53 per cent respectively. In August 2021 it was trading at Rs 517 and now available at only Rs 460. With sugar sector in fancy with many positive developments like ethanol an up move is expected at this counter.
IOL Chemicals and Pharmaceuticals, an API based pharmaceutical company, with substantive manufacturing capacities and expertise in specialty chemicals, has recorded highest Weekly volume last week after July 2020 indicating some big development. Its APIs portfolio covers various therapeutic categories and with 12000 TPA it is the world’s biggest and only backward integrated company producing all Intermediates and Key Starting Materials of ibuprofen. It has been continuously reducing its one product dependency and in last 9 month’s revenue ibuprofen contribution was only 29 per cent which was 53 per cent in the same period earlier. Last week someone has certainly done value buying. This debt free company with a market cap of Rs 2500 crore has Rs 300 crore in its books making it a risk-free investment. The much-awaited upside movement at this counter is good news.
JK Paper has come out with impressive Q3 numbers clocking 37, 62 and 128 per cent increase in its sales, operating profit and net profit respectively. On 9 months basis its sales, operating profit and net profit were up by 42, 98 and 258 per cent respectively. This company is a market leader in copier paper and leading producer of coated and packaging papers. Overall paper demand is increasing and despite bad market sentiment this counter on weekly basis closed at higher level showing its inherent strength. Keep under your investment radar.
Delta Corp has come out with impressive Q3 numbers clocking 105, 813 and 5398 per cent increase in its sales, operating profit and net profit respectively which is highest ever in its history. As the Covid fear has almost evaporated the coming vacation season will be good for country’s leading casino and online gaming company. The counter is desperately trying to go in the triple century orbit and stay there for long.
Laurus Labs has given wonderful performance last week and was up by 8 per cent showing the sector’s revival especially the API basket. From its high of Rs724 the stock has corrected and is available at Rs 440. Its recovery and chart pattern shows that the bad days are behind and it has become a good portfolio pick at this level.
GSFC is one of the largest fertilizer and chemicals company. One of the interesting facts is that beside its own business it has ample stakes in different Gujarat government’s PSUs which make it highly valuable company like it has 19.80 per cent in GNFC, 2.25 per cent in Gujarat Alkalies and 6.82 per cent in Gujarat Gas – all doing wonderfully well. Thus, this debt free company has in its kitty almost Rs 5200 crore investment portfolio yet available trading at only Rs 5500 crore market cap. On the TTM basis also it has registered the highest ever sales, operating and net profit. In January 2018 it made a high of Rs 166 and now available at Rs 140 waiting in the wings to fly any day.
Ruchira Papers, engaged in the manufacturing different kinds of papers from craft to writing papers, has come out with impressive Q3 numbers clocking 27, 143 and 1365 per cent increase in its sales, operating profit and net profit respectively. On 9 months basis its sales was up from Rs 357.29 crore to Rs 422.32 crore and operating profit up from Rs 25.69 crore to Rs 37.55 crore. As the demand in the sector is increasing, with a book value of Rs 113 and trading at Rs 88 it seems a safe bet for investment.
Rupa & Company is the No.1 knitwear brand covering the entire range of knitted garments from innerwear to casual wear with a capacity of seven lakh piece. On TTM basis its sales was Rs 1473 crore, operating profit 285 crore and net profit Rs 206 crore – all impressive numbers and highest ever. Abacus, the Sunil Singhania led firm, which had 16,25,000 shares has bought at Rs 465 another 23,06,000 shares in January and thus at present holds a stake of around 5 per cent. The stock is still trading at the same level. The consistently increasing stake by the firm speaks for it making the counter a good long term portfolio pick.
OUR REGULAR READERS will recollect that IEM Research Team in this associate publication as well as in Money Multiplier has discussed many sugar stocks during last four months like Dwarikesh Sugar, Triveni, Dhampur, Uttam, KM Sugar, Balrampur Chini and Shree Renuka – all are doing very fine on bourses and readers have made money. Indian Economy & Market in fact did a Cover Story in September 2021 on Sugar Sector and recommended 5 stocks.
A seasoned investor and fund manager is bullish on Sun Pharma, NMDC, Cipla, Granules and GHFL so these might be worth a second look.