Buy Mirc Electronics @ Rs. 7.50 Target Rs. 15 Plus immediate Target Rs. 10

Credit 

www.onida.com (Mirc Electronics Ltd)

MIRC Electronics Limited (MIRC) takes into account comfortable capital structure with low overall gearing and sufficient liquidity cushion available with the company backed by moderate working capital utilization levels. Ratings also derive strength from comprehensive product portfolio spanning over TVs, Washing machines, ACs and microwaves with brand equity presence for more than over three decades as well as experienced management.

MIRC’s deteriorating operational performance in FY19 and Q1FY20 marked by declining total income and profitability, inherent business risk characterized by higher competition in the industry, technology obsolescence risk and operating profit susceptibility to volatile forex rates.

Going forward, MIRC’s ability to improve its scale of operations and profitability in the wake if increasing competition as well as maintain the capital structure with efficient working capital management.

MIRC is promoted by Mr Gulu. L. Mirchandani (Chairman) and Mr Vijay. J. Mansukhani (MD). Promoters of the company have been associated with the consumer durable industry since more than three and half decades. Promoters of the company are supported by professional management team for heading different divisions of the company

TVs and ACs contributed 82% to the revenues in FY19 as compared to 87% in FY18. However, AC and washing machine segments are growing majorly, further mitigating the dependence on one particular product segment. ACs were the major contributor to revenue in FY19 as compared to TVs in FY18.

MIRC has brand recognition in Indian Electronic consumer durable market as “Onida” since 1981. MIRC has a robust network of dealers throughout the country. As on March 31, 2019, MIRC has 3000 dealers/distributors across pan India. Besides the offline channels, the brand “Onida” also has online presence through e- commerce retailers.

MIRC operates in a very competitive industry dominated by large MNCs with global presence. Presence of large number of players and low product switching cost results in low brand loyalty from consumers. Company faces technology obsolescence risk, thus efforts on product innovation and differentiation is needed which in turn further increases cost. Effective marketing strategies for product penetration is necessary to compete in the industry. There is an import threat in domestic consumer durable markets, especially from Chinese competitors. To compete and mitigate the competitive intensity, MIRC has relaunched brand “IGO” with a view to target millennials and will be available on online platform.

Laffans Petro Ltd. Buy @ Rs. 12.87 Target Rs. 25 within a year immediate Target Rs. 18 to Rs. 20

👍🚀🚀🚀

Positive Points

• Market Cap is only 10 crore
• Mutual Fund and Stock holding is Rs. 45 Crore
• Company has purchase New building worth Rs. 6 crore
• Liability is Zero "0"

Negative Point

• Company is not in any Manufacturing activity
• Only doing Trading Business of Chemical
• Low Volume , Illiquid Stock Script

About the Company

Laffans Petrochemicals Limited (an ISO 9001 - 2000 Company) set up in 1994 to manufacture ethylene oxide derivatives such as Ethoxylates, Glycol Ethers, Acetates, Triethonal-amine, and Brake fluids is located in Ankleshwar, Gujarat.The company entered into collaboration with global leader Huntsman chemicals in 2009 for manufacturing of ethylene oxide derivatives under Huntsman brand and technology. Laffans was the single largest buyer of Ethylene Oxide in India. The unit was acquired by Huntsman Corporation in first quarter of 2011. Laffans is currently focused on Trading and logistic activities based on its established trade name across the chemical sector.

The plant set up under technical assistance of Reliance Industries Ltd is in proximity to E.O supply from Reliance, Hazira. This ensures uninterrupted supply of its basic feedstock which cannot be imported due to its hazardous nature. The unit had commissioned India's largest loop reactor with state - of the - art - controlled system from ROSE MOUNT for consistent quality, This ensures a faster reaction rate and minimum residence time of un reacted EO, which results in high purity ethoxylates with low color, odor and aldehides. The minimum free EO and Dioxane content eliminates interface in the subsequent application.

This multipurpose unit geared to produce Polyethylene Glycols and EO condensates of Alkyl Phenols, Fatty Alcohols, Fatty Acids and Natural Oils also manufacture Esters of stearates & oleates, Ethoxylates , Glycol Ethers , Ethanol Amines. The unit was acquired by Global leader Huntsman Corporation in first quarter of 2011.

SJVN Ltd. buy @ Rs. 25 Target Rs. 35 within 6 month

सतलुजजल विद्युत निगम लिमिटेड (पूर्वनाम, नाथपा झाकड़ी पावर कारपोरेशन लिमिटेड- एनजेपीसी) की स्थापना 24 मई1988 को हिमाचल प्रदेश में सतलुज नदीबेसिन और किसी भीअन्य स्थान पर परियोजनाओं कीआयोजना कर इनके सर्वेक्षणसे लेकर निर्माण तकके कार्य करने एवं इनकापरिचालन व रख-रखावकरने हेतु भारत सरकारतथा हिमाचल प्रदेश सरकार के संयुक्त उपक्रमके रूप में कीगई थी। सतलुज जलविद्युत निगम लिमिटेड कीवर्तमान प्राधिकृत शेयर पूंजी रु.4500 करोड़ है।

नाथपाझाकड़ी जलविद्युत स्टेशन - एनजेएचपीएस (1500 मेगावाट) सतलुज जल विद्युत निगमद्वारा निष्पादन के लिए हाथमे ली गई प्रथमपरियोजना है।

एसजेवीएन की भविष्य की परियोजनाएँ एवं योजनाएँ

एसजेवीएन वर्तमान में 1500 मेगावाट क्षमता के नाथपा झाकड़ी जलविद्युत स्टेशन का प्रचालन एवं 412 मेगावाट क्षमता की रामपुर जल विद्युत परियोजना का निर्माण कर रहा है। 775 मेगावाट क्षमता की लूहरी जल विद्युत परियोजना तथा 40 मेगावाट क्षमता की धौलासिद्ध जलविद्युत परियोजना के निष्पादन अनुबंधों पर हिमाचल प्रदेश सरकार के साथ 27 अक्टूबर 2008 को हस्ताक्षर किए गए हैं। इसके अतिरिक्त एसजेवीएन उत्तराखण्ड राज्य में 252 मेगावाट की देवसरी जल विद्युत परियोजना, 59 मेगावाट की नैटवार मोरी तथा 45 मेगावाट की जाखोल सांकरी जल विद्युत परियोजनाओं का भी निर्माण कर रहा है। हिमाचल प्रदेश सरकार ने एसजेवीएन को हिमाचल प्रदेश में खाब जल विद्युत परियोजना (1020 मेगावाट) डीपीआर बनाने के लिए भी सौंपी है और उम्मीद है कि एसजेवीएन ही इसका निर्माण करेगा।

कंपनी ने अब देश की सीमाएं लांघकर खुली बोली के आधार पर नेपाल में अरुण-III जलविद्युत परियोजना (402 मेगावाट) हासिल की है। इसके अतिरिक्त कंपनी को भूटान में वांग्चू जल विद्युत परियोजना (600 मेगावाट) तथा खोलोंग्चू जल विद्युत परियोजना (650 मेगावाट) नामक दो परियोजनाओं की डीपीआर बनाने/उन्नयन करने का कार्य भी सौंपा गया है। कुल मिलाकर देखा जाए तो अगले कुछ सालों में एसजेवीएन के अरबों डालर लागत वाली परियोजनाओं के प्रचालन एवं निर्माण क साथ संबंद्ध होने की संभावना है।

South indian Bank Buy @ current Price of 10.33 Targer Rs. 20+++ within 1 year

About us
SIB is a major private sector bank headquartered in Thrissur, Kerala India. As on 30 September 2019, it had 870 branches, four service branches, 52 extension counters and 20 regional offices spread across more than 27 states and three union territories in India.

Performance of the Bank Despite the challenges and stress faced by the banking industry during the year under review, your Bank had achieved a net profit of Rs 247.53 crore for FY 2018-19. The net profit for the previous financial year was Rs. 334.89 crore. The Key financial highlights for FY 2018-19 can be summed up as under: 

The Bank has achieved a total Business of Rs.1,44,056.04 crore, consisting of deposits of Rs.80,420.12 crore and gross advances of Rs.63,635.92 crore as on March 31, 2019. With focus given on low-cost deposit sources, CASA has grown from Rs.17,141.74 crore as on March 31, 2018 to Rs.19,467.15 crore as on March 31, 2019, recording a growth rate of 13.57%.  During the year 2018-19, the gross advances of the Bank registered a growth of 15.47%, to touch Rs.63,635.92 crore. 

The capital plus reserves of the Bank has moved up from Rs.5,241.22 crore to Rs.5,335.33 crore. During the year 2018-19, Bank could recover NPAs to the extent of Rs.506.10 crore (recovery including up-gradation of Rs.265.16 crore), as against the target of Rs.500.00 crore. 

The book value per share has been increased from Rs.28.98 to Rs.29.48 as on March 31,2019. 

The bank has been successful in widening its network across India with 870 Branches; 53 Extension counters; 1322 ATMs; and 84 CRMs/CDMs.  There has been a growth of 131% in Mobile Banking activation, 35% growth in Internet Banking Corporate activation and 25% growth in Internet Banking Retail activation. During the year Bank was honoured with significant Institutional recognitions, awards and accolades for various initiatives undertaken.

The Bank has implemented an advanced LOS software as one of the major projects, to equip its Central Processing centres to handle large volumes of proposals, to bring more transparency and control and to reduce the turnaround time (TAT) in processing the loan applications. The Bank accords utmost importance to enhancement of skills of staff members. Training Programmes are conducted at SIB Staff Training College (SIBSTC), Thrissur and at seven Regional Training Centres (RTCs) for development of professional skills. Training programmes are designed to develop competency of operating personnel while imbibing the SIBIAN‟s spirit and culture through an effective learning process. The success of these programmes reflects on the enhanced organizational productivity. SIBSTC and the RTCs identify skill gaps in the personnel and provide support for qualitative improvement. Staff members are also nominated to external training centers for being trained in specialized areas as well as to have higher exposure. During the financial year 2018-19, the Bank has imparted training to 4,014 officers, 1,802 clerks and 54 sub staff in various aspects of banking operations. A total of 5,870 staff members were trained during the FY 2018-19, which is about 70% of total staff strength of 8440 as on March 31, 2019. 

This is in consonance with the Bank‟s priority of continuous up-gradation of skills to ensure that the staff members meet the rising expectations of customers and discharge services professionally covering the entire gamut of banking operations. 

Signet Industries buy @ current Price of Rs. 18.55 one Year Target Rs. 35

https://www.groupsignet.com/index.html

About the Company 

Incorporated in 1985, Signet is engaged in trading and distribution of polymers such as polypropylene (PP), high density polyethylene (HDPE), poly vinyl chloride resin (PVC); along with manufacturing of plastic pipes and fittings for MIS and construction segment and moulded plastic goods for household use and furniture. Manufacturing operations of the company commenced in 2011 at its plant in Pithampur, Madhya Pradesh, equipped with a capacity of 28,320 MTPA as on March 31, 2015. Besides, the company also has a wind power generation capacity of 1.4 megawatts (MW) in the states of Maharashtra and Rajasthan.

Established operations and experienced promoters in polymer trading and plastic products business: Signet has established operations of over two decades in polymer trading and has also established a strong foothold in the plastic products business, including MIS, with over four decades of experience of its principal promoter in the business. The company had earlier envisaged buying out the engineering division of one of its group concerns; however, it has now shelved this acquisition plan.

Steady demand outlook for the plastic pipes industry; albeit with intense competition: Demand outlook for the Indian plastic pipes is expected to be steady with increased government spending in construction & infrastructure sectors alongwith thrust on the agriculture sector and focus on MIS; by way of higher targeted production and improved productivity through greater availability of credit. However, the industry remains exposed to high competition and limited pricing power; on account of fragmentation in the industry which can put pressure on its profitability margins.

H T Media Ltd buy @ current price of Rs. 13.80 Target Rs. 30

HT Media is engaged into the business of providing entertainment, radio broadcast and all other related activities through its Radio Stations operating under brand name Fever 104, Fever and Radio Nasha.

About the Company

Hindustan Times Ltd (HTL), a KK Birla group company, held 69.5% stake in HTML as on September 30, 2019. HTL demerged its print media business into HTML in July 2003. HT, the leading English daily in Delhi that was inaugurated by Mahatma Gandhi in 1924, is HTML's flagship product. Other publications include Hindustan and Mint; a women's Hindi magazine, Kadambini; and a children's magazine, Nandan. HTML has presence in the FM radio space through Fever 104 FM, Radio Nasha and Radio One; and has internet portals such as shine.com.

* Established market position of publications
HT is the third-largest English daily in India, with a circulation of about 9 lakh copies during January-June 2019, as per circulation audit by Audit Bureau of Circulation (ABC). Hindustan is also the fourth-largest circulated Hindi daily, with circulation of around 19 lakh copies for the same period, as per ABC data.
 
According to the Indian Readership Survey (IRS) Q2 2019, Hindustan is the second most read newspaper among Hindi dailies, while HT is the second most read English daily. HT's strong market position in NCR and Hindustan's leadership position in UP, Bihar and Jharkhand, should continue to support overall business risk profile.
 
* Strong financial flexibility
Capital structure draws support from the sizeable liquid surplus of Rs 2,280 crore as on September 30, 2019, which comfortably exceeded total debt of Rs 1,120 crore. Gearing was healthy at 0.45 time as on March 31, 2019, and is expected to remain stable over medium term. Debt protection metrics for fiscal 2020 are expected to improve moderately in line with mild recovery in profitability, with interest coverage expected at rise to more than 4 times for fiscal 2020 from 2.83 times in fiscal 2019.

Annexure - List of entities consolidated Names of Entities Consolidated Extent of Consolidation Rationale for Consolidation Hindustan Media Ventures Ltd Fully Consolidated Related business and common promoters HT Digital Media Holdings Ltd Fully Consolidated Related business and common promoters HT Music and Entertainment Company Ltd Fully Consolidated Related business and common promoters HT Education Ltd Fully Consolidated Related business and common promoters HT Learning Centers Ltd Fully Consolidated Related business and common promoters India Education Services Private Limited Fully Consolidated Related business and common promoters HT Global Education Fully Consolidated Related business and common promoters Topmovies Entertainment Ltd Fully Consolidated Related business and common promoters Firefly-e-Ventures Ltd Fully Consolidated Related business and common promoters HT Mobile Solutions Ltd Fully Consolidated Related business and common promoters HT Overseas Pte. Ltd Fully Consolidated Related business and common promoters Next Mediaworks Ltd Fully Consolidated Strong business linkages Next Radio Ltd Fully Consolidated Strong business linkages Syngience Broadcast Ahmedabad Ltd Fully Consolidated Strong business linkages

 

IDFC BUY @ 35 Target in 1 year Rs. 55

DFC Limited’s (IDFC) good standing and its strong financial flexibility, by virtue of being the main holding company of the IDFC Group. IDFC holds a 100% stake in IDFC Financial Holding Company Limited (IDFC FHCL), which, in turn, holds an equity stake in IDFC First Bank (rated [ICRA]AA+(Stable)/[ICRA]A1+), IDFC Asset Management Company Limited (IDFC AMC), IDFC Securities Limited and IDFC Infrastructure Finance Limited (IDFC IFL; rated [ICRA]AAA(Stable)/[ICRA]A1+). However, as part of its strategy, IDFC plans to divest its stakes in various subsidiaries. While it has already sold the business of IDFC Alternatives, it has signed a definitive agreement with National Investment and Infrastructure Fund II (NIIF II) for the sale of its majority stake in IDFC IFL. The good market value of the company’s holdings in IDFC First Bank1 and the strategic holdings in the unlisted companies of the Group support IDFC’s liquidity profile. This, coupled with investments in mutual funds and cash and cash equivalents of around Rs. 500 crore as on September 30, 2018, provides liquidity cushion. The rating also factors in IDFC’s strong capitalisation levels with a net worth of Rs. 9,775.53 crore, on a standalone basis as on September 30, 2018, with nil borrowings. ICRA, however, takes note of the company’s dependence on dividend income from investee companies (mainly IDFC First Bank and IDFC AMC) as the primary source of income and thus the credit profile of these entities would have a key bearing on the ratings for IDFC. 

Strong market position by virtue of being a key holding company of IDFC Bank – IDFC, through IDFC FHCL (100% subsidiary of IDFC), holds a significant stake in IDFC First Bank (stake of ~40% in the merged entity of IDFC Bank and Capital First Limited). Apart from this, the company has 100% stake in IDFC AMC and IDFC Securities Limited. IDFC recently sold the businesses of IDFC Alternatives. It also entered into a definitive agreement with NIIF II for the sale of its majority stake (81.48% as on September 30, 2018) in IDFC IFL. The transaction is subject to regulatory approvals.

Comfortable liquidity – The company has a comfortable liquidity profile given the investments in mutual funds and cash and cash equivalents of around Rs. 500 crore as on September 30, 2018, which provide liquidity cushion. IDFC also has holdings in various unlisted companies (IDFC IFL, IDFC AMC and IDFC Securities). The liquidity is expected to be further supported by the proceeds from the sale of its stake in IDFC IFL. While IDFC also has a shareholding of ~40% in the merged entity of IDFC First Bank, the stake in IDFC First Bank can, however, be diluted to 20% only in October 2020. 

Strong capitalisation and low gearing targets – On a standalone basis, IDFC had a strong net worth of Rs. 9,775.53 crore as on September 30, 2018 with nil borrowings. The strong current capitalisation and low gearing target, going forward, are credit positives. The capitalisation profile of the merged bank (IDFC First Bank) is expected to remain at a comfortable level without any capital requirement in the near to medium term. Hence, no equity infusion would be required from IDFC in the short to medium term. ICRA expects IDFC to maintain prudent capitalisation levels going forward, as well.  

by : - Thakor Mistry

GSFC Accumulate at Current Price of 68 and lower Target Rs. 100++ Sureshot.

 Gujarat State Fertilizers and Chemicals

52 Week High is Rs. 118 and this is the lowest price. 

You can accumulate it Now. Target Rs. 100++

Gujarat State Fertilizers & Chemicals Limited (GSFC) is an Indian manufacturer of fertilizers and Industrial Chemicals. GSFC was founded in 1962. Oil and gas discoveries in Bombay High and South Basin triggered the birth of 8 new generation fertilizer plants to fulfill the growing food needs of India.

The company is listed on the Bombay Stock Exchange with the Security Code 500690, and as at Monday 28 September 2014 it had a market capitalisation of Rs 3,030.42 crore.[1] GSFC maintains its headquarters in Vadodara in the state of Gujarat, on the Vadodara-Ahmedabad National Highway.[2] It manufacturers plastics, nylons, fibers, industrial gases and varied chemicals including urea, ammonia, ammonium sulfate, sulfuric acid, phosphoric acid & diammonium phosphate, Caprolactam, Malemine, Methanol.[3]

In 1976, GSFC entered into a joint venture with the State Government of Gujarat by setting up a plant in Bharuch which trades as Gujarat Narmada Valley Fertilizers & Chemicals Limited.

GSFC’s product range includes fertilizer products (manufacturing) like Di-Ammonium Phosphate (DAP), Urea, AS, Ammonium Phosphate Sulphate (APS) and industrial chemical products like Caprolactam, Nylon-6 (N-6), Melamine, Nylon chips, MEK Oxime, etc. Furthermore, GSFC trades in DAP, Methanol, Melamine and other fertilizer as well as Industrial products.

GSFC’s operations are marked by high level of vertical integration across both fertilizers and industrial products division. GSFC meets its ammonia requirements for manufacturing of fertilizers such as urea, AS and APS and few industrial products through captive production. Furthermore, captive production of caprolactam is used for manufacturing N-6. The integrated manufacturing facilities attempt full utilization of available resources.

Total Operating Income (TOI) of GSFC improved by ~35% during FY19 from Rs.6346 crore in FY18 to Rs.8576 crore in FY19 mainly on the back of higher trading income of DAP. PBILDT margin moderated from 10.23% during FY18 to 9.77% during FY19 mainly because of higher trading income; otherwise absolute PBILDT improved from Rs.649 crore in FY18 to Rs.838 crore in FY19. Overall gearing ratio of GSFC remained stable at 0.15x as on March 31, 2019 with stable working capital borrowings. Subsidy receivables decreased marginally from Rs.1,719 crore at FY18 end to Rs.1,658 crore at FY19 end mainly due to release of withheld AS subsidy. Also, its debt coverage indicators marked by interest coverage & Total debt / PBILDT improved during FY19.

Surat Textile Mill buy @ Re. 1 Target Rs. 5

About the Company 

Incorporated in 1945, Surat Textile Mills Limited (STML) is part of the Garden Group (rated CARE D) is engaged in manufacturing of polyester chips (with an installed capacity of 24,500 Metric Tonnes Per Annum- [MTPA]), partially oriented yarn (POY) and polyester filament yarn (PFY) (with an installed capacity of 5000 MTPA). STML’s manufacturing facilities are located in Jolwa village in Palsana Taluka of Surat. STML procures raw material [mainly purified terephthalic acid (PTA), mono-ethylene glycol (MEG)] largely from the domestic suppliers sells its products mainly in the domestic market. 

Key Rating Strengths

Experienced promoters in the textile business: 

STML belongs to the Garden Group that has vast experience in the polyester intermediates and textiles industry. At the helm of its management are the Managing Director, Mr. M. R. Momaya, and CFO Mr. Yogesh Papaiya, who have an established track record of over 3 decades in the textile industry and have helped STML to develop strong business relations with its stakeholders

Modest scale of operations: 

STML is engaged in manufacturing of PET Chips and Partially Oriented Yarn (POY) having a manufacturing capacity of 24,500 MTPA and 5,000 MTPA respectively. STML derives majority of its revenue through supply of PET chips to larger textiles manufacturers who utilise PET chips as a raw material for further processing to manufacture manmade fibres. STML’s 5,000 MTPA yarn manufacturing unit has resumed production in FY18. Resumption of production along with improved sales volume led to 44.58% increase in Total Operating Income to Rs. 203.16 Crore in FY18 from Rs. 140.52 Crore in FY17. However, given weak demand, yarn manufacturing operations were suspended in March 2018. Going forward, ability of STML to maintain its scale of operations in the intensely competitive market is a key rating sensitivity. 

Comfortable gearing lead to comfortable debt coverage indicators: 

Gearing continues to remain comfortable due to minimal leverage and moderate net worth. Overall gearing stood at 0.14 times in FY18 (0.02 times in FY17). The slight increase in gearing level was on account of relatively higher utilisation of cash credit utilisation as on March 31, 2018 which stood at Rs.1.5 Crore as compared to nil in the previous period. Given comfortable gearing levels, debt coverage indicators continue to remain healthy with interest coverage ratio at 16.31 times in FY18 (38.11 times in FY17). However, significant increase in leverage which may impact gearing levels and ultimately debt service capability is a key rating sensitivity 

Liquidity: 

The liquidity position of the company continues to be comfortable on account of significant liquid investments in the form of mutual funds which stood at Rs.55 Crore as on February 2019. Further utilisation of cash credit limit is minimal which provides additional liquidity comfort..