UDAIPUR CEMENT - FUNDAMENTALS and TECHNICALS - BULLRUN COMING
Udaipur Cement Works Limited (UCWL), incorporated on 15th March 1993, has its registered office at Jaipur, Rajasthan. The company presently is a subsidiary of Indian Cement Manufacturing Company, JK Lakshmi Cement Limited, which is part of reputed business conglomerate JK Organisation (JKO) that has rich business legacy of more than 135 years. UCWL manufactures cement under the brand name-Platinum Heavy Duty Cement.
FUNDAMENTALS:
> It is a Small Cap company with a market cap of just Rs.953 Cr.
> The ROCE is at 16% and ROE is at super 30% which is very impressive. Positive.
> Stock P/E is at just 15 which makes the valuation very attractive as compared to the sector P/E at 23. Positive.
> Higher than Industry Revenue Growth: Over the last 5 years, revenue has grown at a yearly rate of 52.03% vs industry avg of 12.41%. Positive.
> Increasing Market Share: Over the last 5 years, market share increased from 0.06% to 0.35%. Positive.
> Higher than Industry Net Income: Over the last 5 years, net income has grown at a yearly rate of 47.72% vs industry avg of 18.8%. Positive.
> Debts: The company have Debts of Rs. 523 Cr as per Mar 21 Balance Sheet but the good thing is that it has been taken for business expansion.
> Very robust Topline and Bottomline, continuously increasing on YoY basis.
> The company is increasing its cash reserves on YoY basis too.
> OPM is rapidly growing in last 5 years which is wonderful, it is at 20% as per Mar 21 Balance Sheet, company has also delivered good profit growth of 63% CAGR over last 5 years, that's a super positive sign.
> Promoters holding is intact at 72.54% that is a good sign, like they trust their own business and staying invested.
TECHNICALS:
> On the chart stock have recently gave Breakout after making wonderful Rounding Bottom Pattern since June 17.
> It is trading above 100 and 200 DMAs.
> Volume is picking up significantly as compared to last few quarters as highlighted by blue box at the bottom, lot of accumulation is going on and the stock is getting ready for a wonderful bull run.
With the construction sector coming on track throughout the country as the Covid restrictions easing up slowly in multiple states, the stock have very good potential to become a multibagger.
Fresh Buy - AT CMP i.e. 30
Old Buy – Hold
First Target – 38.5, but I’m into this for a long haul.
Risk Management Tip: Never invest more than 5% of your capital in any single stock.
Happy Investing!
ShareMktSchool
FUNDAMENTALS:
> It is a Small Cap company with a market cap of just Rs.953 Cr.
> The ROCE is at 16% and ROE is at super 30% which is very impressive. Positive.
> Stock P/E is at just 15 which makes the valuation very attractive as compared to the sector P/E at 23. Positive.
> Higher than Industry Revenue Growth: Over the last 5 years, revenue has grown at a yearly rate of 52.03% vs industry avg of 12.41%. Positive.
> Increasing Market Share: Over the last 5 years, market share increased from 0.06% to 0.35%. Positive.
> Higher than Industry Net Income: Over the last 5 years, net income has grown at a yearly rate of 47.72% vs industry avg of 18.8%. Positive.
> Debts: The company have Debts of Rs. 523 Cr as per Mar 21 Balance Sheet but the good thing is that it has been taken for business expansion.
> Very robust Topline and Bottomline, continuously increasing on YoY basis.
> The company is increasing its cash reserves on YoY basis too.
> OPM is rapidly growing in last 5 years which is wonderful, it is at 20% as per Mar 21 Balance Sheet, company has also delivered good profit growth of 63% CAGR over last 5 years, that's a super positive sign.
> Promoters holding is intact at 72.54% that is a good sign, like they trust their own business and staying invested.
TECHNICALS:
> On the chart stock have recently gave Breakout after making wonderful Rounding Bottom Pattern since June 17.
> It is trading above 100 and 200 DMAs.
> Volume is picking up significantly as compared to last few quarters as highlighted by blue box at the bottom, lot of accumulation is going on and the stock is getting ready for a wonderful bull run.
With the construction sector coming on track throughout the country as the Covid restrictions easing up slowly in multiple states, the stock have very good potential to become a multibagger.
Fresh Buy - AT CMP i.e. 30
Old Buy – Hold
First Target – 38.5, but I’m into this for a long haul.
Risk Management Tip: Never invest more than 5% of your capital in any single stock.
Happy Investing!
ShareMktSchool