Stock Analysis: GEM Enviro Management Limited

2 days ago

Introduction:
GEM Enviro Management Limited is a waste management firm that was founded in February 2013 and focuses on recycling all packaging trash, including plastic waste.
Business Services:
1. EPR consulting and fulfillment for plastic waste
2. Collection and recycling of waste plastic from industry
3. Recycled product marketing and sales
4. Business Responsibility and Sustainability Reporting (BRSR) and ESG consulting
Revenue Split: 82.5% goes to EPR consulting and fulfillment for plastic waste
Industrial plastic waste collection and recycling: 17.5%

Fundamentals:
Market Cap: ₹ 340 Cr. Stock P/E: 30.1 (Ind. P/E: 34.4) 👍
ROCE: 52.5 % 👍 ROE: 38.8 % 👍
3 Years Sales Growth: 10% 3 Years Profit Growth: 25% 👍
3 Years ROE 45.4% 👍

Cons: Stock is trading at 7.00 times its book value 👎

Technicals:
GEM Enviro Management Limited is a recently listed firm.
It has been in a downtrend since reaching 323 levels in mid July 2024.
It is trading in a strong consolidation zone between 142 and 197 levels.
For any significant upside momentum, the stock has to take strong support around 20 EMA (Black Line)
with a strong volume.
The bullish trend can be confirmed once the 20 EMA (Black Line) traverses past 50 EMA (Orange Line) and 100 EMA (Sky Blue Line) in the weekly closing.
Resistance levels: 197, 290, 323
Support levels: 142
Note: As per technical analysis, downside risk is minimum and upside potential is huge.