TECHNICAL BUY OF THIS PHARMA PLAYER- Dishman Carbogen Amcis Ltd:

Dishman Carbogen Amcis Ltd is a fully integrated CRAMS player working with global pharmaceutical innovators, has a global presence with development and manufacturing facilities across Europe, India, and China. We provide end-to-end, integrated, high-value, niche CRAMS offering, right from process research and development to late-stage clinical and commercial manufacturing facilities along with the supply of Active Pharmaceutical Ingredients (API) to innovator pharmaceutical companies. In the weekly chart, this stock breaks out above Rs.213 forming an Inverted Head and Shoulder. Buy at CMP-237 with target-400 within one year maintaining the stop loss 200

RALLIS INDIA REVIEW FOR BUYING

RALLIS INDIA

After Recoomendtion on 9/01/2021 @Rs 302, Rallis India touched Rs.362.60.forming a recent top. Then undergoes correction confirming an uptrend channel. Now after bottoming out starts the upward journey for targeting Rs. 360. The double RED line at Rs. 270-300 is very strong support which was Resistance from the Year 2015. So above 360-365. A new upward journey will be started targeting 490.

In this weekly chart, RSI takes support from 40 levels. Macd stars converging for a bullish crossover.ADX(DMI) Bullish blue line(DI+) ready to go upside again after touch & kiss yellow line(DI-) which provides more confidence for rising up of price. 

Most Undervalued Electrical Vehicle Related Stock for Future Multibagger

Amara Raja Batteries Ltd(NSE: AMARAJABAT) CMP-Rs.721 

Amara Raja Batteries (ARBL), the flagship company of the Amara Raja Group is a leading manufacturer of automotive batteries under the brands - Amaron and PowerZone

 The organization is the TECHNOLOGY LEADER and is the biggest producer of lead-acid batteries for both mechanical and auto applications in the Indian stockpiling battery industry. 

In India, Amara Raja is the preferred supplier to major telecom service providers, Telecom equipment manufacturers, UPS sector (OEM & Replacement), Indian Railways and to Power, Oil & Gas, Passenger Vehicles, Three Wheelers, Two Wheelers, Commercial Vehicles, Farm Vehicles, Inverters. Additionally, Amara Raja Industrial Batteries offers a wide scope of battery arrangements in portions like UPS, Telecom, Railways, Defense, and Motive.

Most investors are disappointed who already stay invested in Electrical vehicle-related Stocks in perception for EV Boom but fruits are not riped till now. But remember this is high time to invest in Electrical vehicle-related Stocks. I have found out this  very strong potential and undervalued growth stock which is fundamentally very strong for its consistent growth potential

Financial Health

 -: Previous year & Future Sales And Profit Growth Estimation:-

Ø     Amara Raja Batteries Ltd's earnings have grown by 5.5%, whereas share price has declined -6.6% CAGR over the past five years, indicating the company’s share price is likely undervalued.

Ø    Amara Raja Batteries Ltd share price has appreciated 20.3% annually (CAGR) over the past ten years.

Ø    Amara Raja Batteries and Exide Industries each have 30% market share in this industry in India

Ø    Amara Raja Batteries already has a foreign partner. Johnson Controls holds a 26% stake in the company. Johnson Controls has the uniqueness to provide technical support and gain a stake in the company.

52 weeks High / Low Ratio	1026/665 =1.54	<2.2 is Good
Current Ratio	1.96	> 1.25 is Good,	A liquidity ratio that measures a company's ability to pay short-term obligations. The higher the current ratio, the more capable the company is of paying its obligations.
Quick Ratio (x)	0.85	> 1 is Good,	The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets
Sales growth	15%	CAGR >15% for last 7-10 years	Growth should be consistent year on year. Ignore companies where a sudden spurt of sales in one year is confounding the 10 years performance. Very high growth rates of >50% are unsustainable.
Price to Sales ratio (P/S ratio)	1.56	< 1.5 is Good	James O’Shaughnessy: Buy if P/S ratio is < 1.5 and sell if >3
Price to Book value Ratio(P/B Ratio)	2.93 (Last 10 year average 3.44)	For a Good Company 3 – 6 is Ok & < 4 is very good	A stock is termed as undervalued if it has a lower P/B ratio. A low P/B ratio may also mean a company has some problems with its fundamentals.
Return On Asset (%)	11.8	> 5% is Good, < 5% is Not Good	An indicator of how efficient management is at using its assets to generate earnings. Calculated by dividing a company’s annual earnings by its total assets
Return On Equity (%)	16.2%	> 10% is Good,	Also called Return on net worth, it measures a company’s profitability by revealing how much profit a company generates with the money shareholders have invested, it is calculated by dividing the net profit after tax by shareholder's fund For high-growth companies you should expect a higher ROE.
Cash Flow from Operation	802 Cr	CFO>0	Positive CFO necessary
Tax Payout	26%	>30% Good	The tax rate should be near the general corporate tax rate unless some specific tax incentives apply to the company.
Profitability (Net profit Margin)	9%	>8 is Good	Look for companies with sustained operating profit & net profit margins over the years
P/E ratio	17.4 Industry P/E 21.4	<Industry P/E is Good.	The P/E ratio is the most widely used parameter to analyze whether the stock of any company is overvalued or undervalued at any point in time. It is calculated by dividing the current market price (CMP) of stock by profit/earnings per share (EPS).
Dividend Yield (%)	1.52%	> 0 is Good, Higher is better	A financial ratio that shows how much a company pays out in dividends each year relative to its share price. The dividend yield is calculated as annual dividends per share divided by market price per share.
P/E to Growth ratio (PEG ratio)	3.15	<1 is Good	The price/earnings to growth ratio (PEG ratio) is a stock's price-to-earnings (P/E) ratio divided by the growth rate of its earnings for a specified time period. The PEG ratio is used to determine a stock's value while taking the company's earnings growth into account and is considered to provide a more complete picture than the P/E ratio.
Promoter shareholding	Promoter-28.1% Public- 34.6 % FII-22.1 % DII-15.24 %	> 30% (Must for Promoter)	Higher the better
Interest Coverage Ratio	88	> 2 is Good, (For Banks & NBFC this is not Valid)	It is used to determine how easily a company can pay interest on outstanding debt. It is calculated by dividing a company's EBIT by interest expenses.
Debt Equity Ratio	0.02	< 1 is Good, (For Banks & NBFC this is not Valid)	A measure of a company's financial leverage is calculated by dividing its total liabilities by stockholders’ equity. The debt/equity ratio also depends on the industry in which the company operates.

FAIR/INTRINSIC VALUE OF AMARA RAJA BATTERIES 

What is the Intrinsic Value of AMARA RAJA BATTERIES?

As of 09-Sep-2021, the Intrinsic Value of AMARA RAJA BATTERIES is Rs. 989.31 determined based on Median of the 3 historical models.
Fair Value [Median EV / EBIDTA Model] : Rs. 952.80
Fair Value [Median EV / Sales Model] : Rs. 1,016.93
Fair Value [Median Price / Sales Model] : Rs. 989.31
Median Fair Value of AMARA RAJA BATTERIES: Rs. 989.31

As of 09-Sep-2021, AMARA RAJA BATTERIES is trading at a Discount of -27% based on the estimates of Median Intrinsic Value!

Technical Analysis

In the weekly chart,  Price confluence at Rs. 683, which is very good support & price follows a downtrend channel & tries to break this trend channel to go upside. If price sustains above Rs. 730.

6th UP TARGET 2111.46 5th UP TARGET 1730.62 4th UP TARGET 1495.21 3rd UP TARGET 1259.81 2nD UP TARGET 1125.00 1sT. UP TARGET 1020.00

Weekly RSI Now 41.5 & return from level 30. MACD converged fully & ready to cross the signal line(Redline). So Investors Must take a look to buy this gems stock Keeping stop loss @ 650.

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“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.” – By Paul Samuelson

Technical Buy Wipro Limited

Buy  IT Giant Wipro Limited for multi fold Return(CMP-469.20)

From Jan 21 Wipro limited was in correction phase as flat movement .last week created a new high after good result.Buy at this level & dips @ 450 for the conservative target to 525 short term & then 600.
Support Level are   450/430/400

Bhansali Engineering-A Technically Bullish Stock

 Bhansali Engineering is Ready to Huge Up move(CMP-163.80)

On daily chart Bhansali Engineering has formed an ideal symmetrical Triangle.On 7/4/21 price just cross downtrend resistance line .If price sustains above Rs.160.It would be a good opportunity to buy this Bullish trending stock Targeting Rs.230 Short to medium term keeping Stop loss Rs.153.

Happy investing.

TECHNICAL TALK OF BULLISH BREAKOUT STOCKS

 KANCHI KAPOORAM LIMITED(CMP Rs. 818)

After 12/3/21 Kanchi Kapooram starts nonstop upward journey crossing previous top 562.From 16/2/21 to 26/03/21 corrected 50 % Fibonacci retracement following downtend channel which is technically a BULL FLAG PATTERN.Just before 3 session a bullish breakout of bull flag done.So for short to medium term stock may shoot up targeting Rs. 1075 keeping Stop loss Rs.700.

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Which is The No 1 FMCG Company In India ?

Our Everyday life is solely dependent on FMCG (Fast Moving Consumer Goods) products from morning to night.This Sector is the India's fourth largest sector & engaged 3.2 million people directly or indirectly.The demand of FMCG products are growing rapidly.Due to low cost & very fast consumption, FMCG products are produced in large volume. This sectors basically covers Processed foods, Drinks,Beverages,Personal care products,Medicines,Cleaning Products,Toiletries,Office Supplies
Today we have done detailed fundamental comparison of  top 6  FMCG Companies in India. This companion is based on Quality & Valuation.

Comparison Of 6 good FMCG Companies by  Fundamental Analysis.

Companies selected for analysis

      1) GODREJCP                        2) MARICO                                    3) HINDUNILVR

      4) DABUR                               5) ITC                                             6) TATA CONSUMER

Process Of Analysis & Understanding of Rank & Score considering Quality & Valuation

A) Comparison considering Quality

Here , 1 means that the company has scored lowest points and 5 means the company has scored highest points.

Here we have analysed considering ten matrices as below :

         1) Current Ratio                                 2) Return on Capital Employed(ROCE)   

         3) Return on Equity (ROE)               4) Retun on Asset (ROA)            

         5) Debt to Equity Ratio(D/E)            6) Inventory Turnover Ratio

        7) Interest Coverage Ratio                8) Operating Profit Margin             

        9) 5 year sales & Profit Growth        10) 5 year sales & Profit Growth    

Comparing  the quality aspects HINDUNILVR is Ranked One &  GODREJ CONSUMER Is Ranked Sixth.

A) Comparison considering Valuation

Here we have valued Stock Price((Highest(6) to Lowest(1)) considering ten matrices as below :

        1) Price/ Earning  to Earnings Growth Ratio(PEG Ratio)    2) Price to sales Ratio (P/S ratio)   

        3) Price to Book Value (P/B Ratio)                                       4) Price/ Earning (PE Ratio)            

        5) Dividend Yield (D/Y ratio)                                                 6) EV/EBITDA Ratio(Lower Better)

        7)EV/Sales Ratio                                                                   8) PEXPB (Lower Better)             

        9) Price to free Cash Flow (Price /FCF)                             10) Price To Graham No(lower Better)    

Comparing  the Valuation  aspects ITC is Ranked One (Cheapest Price) & DABUR is Ranked Sixth (High price).

Please note that this is not any buy and sell recommendation , only a comparative study for education purpose only.

Technical & Fundamental View Of FMCG Major ITC

ITC has diversified product portfolio in Branded Packaged Foods, Personal Care, Education and Stationery, Agarbattis & Safety Matches, Lifestyle Retailing, Cigarettes & Cigars, Hotels, Paperboards & Specialty Papers, Packaging, Agri-business & IT.

ITC seeks to be emerge as an engine of growth in the Indian economy through a vibrant portfolio of future-ready businesses that are well poised to serve the emerging needs of  future market. The synergies between ITC’s diverse businesses lend competitive strength to each other. ITC aspires to be a leader in every business segment that it operates in, whilst creating sustained value for all stakeholders.

ITC has made tremendous effort to decrease its dependence on cigarette business. It has been successfully able to mobilise all its funds generated from the business of Tobacco, in other fast-growing sectors like FMCG, Agri- products, and hospitality chains. 

-:Fundamental Analysis :-

 -:Company Snapshot & Brand Strength :-

   1) Runs 13 Business in 5 Segments.

    2) Over 60 New Products launched in 1919-1920

    3)  ITC exports 90 Countries

    4)  40 lacks farmers are involved

    5) ITC’s FMCG products are available in 60 
        lacs retail outlets.

    6) ITC’s FMCG products are  available in  6
         million retail outlets

    7) Aashirvaad is No. 1 in branded Atta

    8) Bingo! Is No. 1 in Bridges segment of Snack
        Foods (No.2 overall in Snacks & Potato 
        Chips) 

     9)  Sunfeast is No. 1 in Cream Biscuits

10) Classmate is No. 1 in Notebooks

11) YiPPee! is No. 2 in Noodles.

12) Fiama is No.2 in Body Wash

13) Mangaldeep is No. 2 in Agarbattis (No. 1 in Dhoop segment)

-:Financial Health:-

-:Sales & Profit Growth:-

• Last 10 Years Compounded Sales Growth 10%
• Last 10 Years Compounded Profit Growth 14%
• Stock is providing a good dividend yield(4.66%)
• Company has been maintaining a healthy dividend payout

-:Free Cash Flow Trend Analysis:-

Free cash flow is the money  which  has left over after it has paid for everything it needs to continue operating—including buildings, Property, plant, equipment, payroll, taxes, and inventory.It is also Called Owner's earnings.

     Year -    2015           2016           2017             2018                2019                 2020

     FCF -   6543 Cr    7451 Cr       7505 Cr       10291 Cr          9414 Cr          12248 Cr            

Over the last 5 years, ITC has maintained free cash flow growth has been 13.36%, vs industry average of 13.93%. This consistent growth of cash flow is very good for company as well as investors.Such cash flow indicates that company has robust potential to grow in future.

-:Liquidity Analysis:-

Over the last 5 years, ITC has maintained free cash flow growth has been 13.36%, vs industry avg of 13.93%
Company has been maintaining a healthy dividend payout

Company is almost debt free (Debt to equity ratio-0.01)

Current Ratio-2.91 (>1.25 is Good) (A liquidity ratio that measures a company's ability to pay short-term obligations. The higher the current ratio, the more capable the company is of paying its obligations.)

Current Ratio-2 (>1 is Good)( The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets)

So Company has good Liquidity which help company to  survive in adverse time also.

-:Profitability Analysis -

Company is consistently maintaining High Return Of Equity (ROE>15 Very Good) & High Return Of Capital Employed(ROCE>15% is Good) & Good ROA

-:Valuation -

• The Present Price to Earning Ratio(PE ratio) is 14.47 Which is lower than industry average 49.4
• EPS is steadily growing from Rs. 4.30 in 2011 to Rs. 12.31 in 2020

Conclusion : Analyzing all financial data, In respect of long term view ITC is a Very good investment bet & as per my view every investor must consider to include this dark horse in Portfolio.

Technical View

CMP of ITC is Rs. 217.85. ITC Recovers from March low low Rs.135 slowly following the uptrend Channel drawn red line.Now last 6 session price consolidate between Rs.200-220 & preparing to break out the channel.

The One interesting observation to be noted that  Price mostly respects magic lines of green channel of  89 Moving Average, from very beginning of up journey .

In chart, 3 red arrows indicates efficient resistance by channel, 5 blue arrow shows good support zone.

In middle of June '2016 , green arrow shows that after breakout of green channel ,price steadily up move.

Now again that similar situation is arising if  price able to cross the green channel & price sustain above Rs.225,don't miss the opportunity to buy for multibagger return .

Another notable observation is that from January'20 , significant volume increased which never observed earlier. 

So watch out very closely in coming week.

Support =200-204
Resistance =237/276/315/354(Medium to long Target)