Techno-Funda Talk Of Agrochemical Major Rallis India

  

RALLIS INDIA((Cmp Rs. 302.85)

Last 3 session Rallis India decisively crossed 290 resistance level. On 17/7/20  to 09/09/20 this 290 level was strong support .After breakdown on 22/9/20 this 290 zone  became  resistance  & fail to cross this resistance level on  29/09/20 , 7/12/20 &  16/12/20.Finally on 6^th January successfully crossed  Rs. 290 hurdle & crossed the blue coloured downtrend line with significant volume.

RSI 69, in bullish zone. In Macd  bullish crossover done. ADX is  34 (25+ Strong Trend). Bollinger Band expands from Squzee which further confirmed upswing. Buying Range Rs.300 –290. Stop Loss Rs. 280. Target 350 very short time.

Fundamentally also the stock is looking Good :-

 Sales revenue & EPS growth @ 6-7 % Year to year, which is Very steady & healthy

Last few year Share Capital is fixed at 19 cr i.e no dilution of Share. reserves consistently increased year to year.Borrowings are decreasing.

Shareholding Pattern:-FII Increase their stake in Last Sept'20Qtr

• Earnings grew by 30.1% over the past year
• Earnings are forecast to grow 17.83% per year
• Company has reduced debt.
• Company is almost debt free.
• Company is expected to give good quarter
• Company has been maintaining a healthy dividend payout of 30.71%
• Good Entry time to consider, as stock is not in overbought zone
• Last 12 years company never in Loss  & maintains healthy increasing profit from 71 cr To 185 Cr.
•  Good  Promoter holding 50.1%
  
  

  "Wide Diversification only required when investors no not understand what they are doing " -Waren Buffett-

Tata Consumer :A Rising Star in FMCG

Tata Consumer Products, is the India’s leading Branded Tea packet company. About 60% of revenue generated from Tea and coffee business. Recently company presented very Good performance not only in Tea business but other food business also presented robust performance in both Inside & outside India.

In the upcoming semi-annual review Tata Consumer Products may be included in the Nifty index for the rebalancing in March ‘2021, said Edelweiss Alternative Research.

ICRA UPGRADED the rating for the short-term instruments of Tata Consumer Products worth Rs 715 crore at A1-plus and also reaffirmed the rating for the long terrm instruments of Tata Consumer Products to 'ICRA AAA' with a stable outlook from AA-plus earlier. The company has low debt with FII / FPI or institutions increasing their shareholding.

In the Beverages business, Tata Consumer Products is the 2nd largest player in branded tea in the world with over 330 million servings everyday across the world. Their brands include Tata Tea, Tetley, Vitax, Eight O’Clock Coffee, Himalayan Natural Mineral Water, Tata Coffee Grand and Joekels. It is home to key brands such as Tata Tea, Tetley, Tata Salt and Tata Sampann.
Their Tata Tea brand is No.1 in terms of volume and No.2 in terms of value. Tetley brand is among the top 3 in the UK and Canada along with Eight O’ Clock which is the 4th largest player in coffee bags in the US.

Financial Snapshot

• TATACONSUM's forecast earnings growth (17.5% per year) is above the savings rate (7%).
  
  
• TATACONSUM's earnings have grown significantly by 22.7% per year over the past 5 years.
  
  
• TATACONSUM's earnings growth over the past year (38.8%) exceeds its 5-year average 
  (22.7% per year).
• TATACONSUM's earnings growth over the past year (38.8%) exceeded the Food industry
  20%. 
• TATACONSUM's debt to equity ratio has reduced from 20.5% to 7.5% over the past 5 years. 
  
  
• TATACONSUM's debt is well covered by operating cash flow (121.5%).
  
  
•  TATACONSUM's dividend payments have increased over the past 10 years. 
  
  
• TATACONSUM's dividends in 3 years are forecast to be well covered by earnings (39.6% payout ratio). 
  
  
• TATACONSUM's portfolio of products ranges from tea, coffee, water and ready-to-drink to salt, pulses, spices, ready-to-eat and more.
  
  The company overall shows promising growth opportunities and business synergies
  

Technical Outlook(Cmp Rs.601.50) 

Last Week Tata Consumer  given breakout just above Rs. 600. Traders & investors may buy keeping stop loss Rs. 550 for the target of Rs. 655+ shortly if sustain above 600. Investors are advised to buy every dips for the log term view & this stock must be in every portfolio.