TraderRahulPal

Ayurvedic Balm making stock has given Triangle pattern Breakout

Long
NSE:AMRUTANJAN   AMRUTANJAN HEALTH
Hello everyone, i hope you all will be doing good in your life and your trading as well. I have brought a stock which has given breakout of Triangle pattern on weekly time frame, price is sustaining above 50 EMA since 3 weeks, MACD Has also given bullish crossover. There is higher probability we can see upside momentum in near term. Good thing about this stock is this is still trading at discount price, earlier it was trading almost at 50% discount, but recently it has given some upside momentum, still it's on discount around 40%.

About company:-AHCL has been manufacturing ayurvedic balm for pain management since 1893, and is currently managed by the third-generation of promoters. The company is more than 120 years old and is into OTC products in the segments of pain management, women's hygiene, and packaged fruit juice drink.

KEY POINTS
High Market Share in Modern Trade
Amrutanjan has maintained the No. 1 rank in Modern Trade in Head Category with the volume market share of 41.1%* in CY19.

Product Portfolio
The Co. offers a wide range of products in categories like pain management, congestion management, women’s hygiene, beverages, etc.

Revenue Mix FY22
OTC Products - 92%
Beverages - 8%

Geographical Split FY22
Domestic - 98%
Export - 2%

Manufacturing Capabilities
The Co. has 3 manufacturing units: 2 for its OTC products and 1 for beverages. It has a production capacity of 1,600 MT in the OTC manufacturing units. It is in the process of upgrading its beverage plant with state-of-the-art machinery.

Entry into Oral Care Segment
The Co. entered the oral care segment with Stop Pain Dental Gel to offer instant relief from tooth pain and swollen gums.

Launch of Comfy Sanitary Napkins
Amrutanjan entered the women's hygiene segment in FY14, and has scaled it up to a Rs. 50 cr - Rs. 100 Cr business in FY22.

Distribution Network
AHCL’s pain management products are available in ~12 lakh outlets across the country as of Q4 FY22. Comfy’s distribution has reached 3.5 lakh outlets. The Co. has invested in ‘Project M5K’ with the key objective to onboard 5,000 distributors, super stockists, and sub stockists. In FY22, the Company added around 150 super stockists and 1,200 sub-stockists to reach towns/ villages with fewer populations.

Strategic Focus
The Co. continues to focus on expanding distribution, enhancing global footprint, growing its E-Commerce vertical, and controlling costs.


Market Cap
₹ 1,990 Cr.
Current Price
₹ 681
High / Low
₹ 775 / 553
Stock P/E
45.2
Book Value
₹ 89.6
Dividend Yield
0.67 %
ROCE
19.3 %
ROE
14.3 %
Face Value
₹ 1.00
Industry PE
31.9
Debt
₹ 0.66 Cr.
EPS
₹ 15.1
Promoter holding
50.6 %
Intrinsic Value
₹ 337
Pledged percentage
0.00 %
EVEBITDA
30.0
Change in Prom Hold
0.00 %
Profit Var 5Yrs
16.2 %
Sales growth 5Years
11.5 %
Return over 5years
16.4 %
Debt to equity
0.00
Net profit
₹ 44.0 Cr.
ROE 5Yr
21.9 %
Profit growth
5.16 %


Disclaimer:- Please always do your own analysis or consult with your financial advisor before taking any kind of trades.

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Best Regards,
Rahul Pal
(Full Time Trader & Investor)

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