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Autoancillary

Bharat Seats Ltd - Long Term Investment OpportunityIncorporated in 1986, Bharat Seats Limited (BSL) is a joint-venture (JV) between the Indian promoters Relan Group (25.9%), Maruti Suzuki India Limited (14.81%) and Suzuki Motors Corporation (14.81%) involved in manufacturing of cars seats floor carpets for MSIL and two-wheeler seats for Suzuki Motorcycle India Private Limited (SMIPL). BSL is promoted by Mr. Rohit Relan and his family. BSL is the sole supplier for seat sets for several key models of MSIL. Expansion of Manufacturing Facilities: The company has manufacturing facilities located at Gurgaon, Manesar and Borakalan in Haryana. Further, it is in the process of setting up another facility in Surendra Nagar (Gujarat), expected to be operational by April 2021. First Patent and product for Railways: R&D team has designed Modular Berth for Indian Railways. Co. has registered its First Patent. This is a unique design for quick replacement of defective pads/trims rather than replacing complete Berth. R&D: The co. had worked on developing Seating Systems for Hatch-Backs, Sedans and SUV segment vehicles, moulding floor carpets for 4-wheelers, extrusion components for vehicle roof and windshield installation for Maruti Suzuki India Limited. They also recently developed Seats and the complete frame assembly (2-Wheelers) for Suzuki Motorcycle India Private Ltd. Focus: BSL is planning to adopt new technologies and features to enhance seat comfort and value addition for customers, manufacturing products at global quality standards, leverage expertise of technology partners and build local capabilities in key areas e.g. high tensile stampings and high tensile tooling development. Develop vacuum foaming seats for 2-wheelers to improve aesthetics and ride comfort for end customer. Enhance NVH product capabilities and introduce additional NVH products with TAA partner support. Bharat Seats also plans to design and develop new extrusion products to increase product range. FUNDAMENTALS: > It is a Small Cap company with a market cap of just Rs.290 Cr. Very small company. > The ROCE and ROE is at 7.25% and 4.18% respectively. > OPM is at 6% as per Mar 21 Balance Sheet. > Stock P/E is at 18 which makes the valuation very attractive as compared to Industry P/E of 32.4. > Robust Topline and Bottomline, continuously increasing on QoQ basis. > Debts: The company have Debts of Rs . 31 Cr as per Mar 21 Balance Sheet which is much below the acceptable limits as compared to Reserves. > Reserves: It is Rs. 110 Cr as per Mar 21 Balance Sheet. > Promoters holding is above 74.59% as per March 21 Balance Sheet and maintained over 74% since last 10 years, like they trust their own business and staying invested. > FIIs and DIIs have negligible investment in the company. TECHNICALS: > The stock has taken long 3+ years to make a wonderful rounding bottom pattern after taking support at Rs.29 levels. It ready to give breakout with huge volume. > On the chart stock is continuously in UPTREND since March 2020 Covid fall. > Increasing Long Volume towers as indicated by blue arrows at the bottom indicates that lot of accumulation is going on in the stock continuously. > Compare the recent volume with the volume when the stock was falling. Stock is picking up momentum. > Trading above 100 and 200 DMAs, this talks about the strength in the bull run of this stock. Now if we look at the market from broader perspective, Automobile industry is in good momentum specially all small and midcap Auto Ancillary business. Maruti Suzuki India Limited and Suzuki Motorcycle India Private Limited are the major client of this company and if you look at their numbers, it’s increasing with a good pace even in this slowdown market. This trade will test your patience, enter only if you are ready. Fresh Buy - AT CMP i.e. Rs.92 Old Buy – Hold Target 1 & 2 –172 (87%) & 271 (+194%). Risk Management Tip: Never invest more than 5% of your capital in any single stock. Your likes and comments motivate me to bring more profitable studies like this. Happy Investing! ShareMktSchool
BSE:BHARATSELong
by ShareMarketSchool
motherson sumiMotherson sumi: on 7th april posted technical chart of motherson sumi kindly refer accordingly, it has retested the breakout of channel and gives its target. after that it formed HNS pattern at top and goes in retracement mode. presently it formed W pattern with following features: 1. up-wedge breakout with volume. 2. Neckline breakout with volume. 3. strong candle close on daily chart can show new 52 week high with sl of 222 on daily closing basis in 90 days. will track for nxt 3 months n will grab FNO opportunities which gives good RR. will update if taken any fno trade.
MLong
by yogeshna
Samkrg Pistons & Rings - Bull Run in Auto Ancillary Samkrg Pistons & Rings Ltd , set up in March 1985, is in the manufacture of Pistons, Piston pins and Piston-rings for the automotive markets. It has plants at Hyderabad and Srikakulam near Visakhapatnam. SAMKRG caters mainly to the two-wheeler segment (accounted for 95% of its revenue in FY20). Exports: Exports were about 13% of net sales in FY 20. The Co. exports its automotive products to more than 15 customers from different countries. The Co. supplies its aftermarket products to more than 24 countries. It exports to countries like Russia, South Korea, Japan, Brazil, Colombia, etc. Capex: The Co. had spent about Rs 20 crore during FY 19 towards upgrading the facilities to meet BS VI norms. R&D: Total R&D expenditure - 0.25% as a % of Net Sales Focus: The Co. is focusing exports to developed Countries like Europe, U.K, France, Germany, Spain, Brazil and Russia. It is planning to make exports reach 20% of the Turnover. FUNDAMENTALS: > It is a Small Cap company with a market cap of just Rs.231 Cr. Very small company, huge growth potential. > The ROCE and ROE is at 15% and 11% respectively which is very good considering the size of the company. Positive. > Book Value to Market Value ratio is 1.3 which means the company have overall stable fundamentals and not very costly. Positive. > Stock P/E is at 13.3 which makes the valuation very attractive as compared to the industry P/E at 33. Positive. > OPM of the company is very much stable if not growing, it is at 16% as per Mar 21 Balance Sheet and last 5 year average is 17%. > Stable Topline and Bottomline, continuously increasing on QoQ basis. Rapidly increasing on QoQ basis after the Covid slowdown. > Debts: The company have Debts of only Rs.4 Cr as per Mar 21 Balance Sheet which is nothing as compared to its Reserves. We can call this a debt free company which is wonderful. > Reserves: It is Rs. 156 Cr as per Mar 21 Balance Sheet. Continuously increasing since last 10 years. > Promoters holding is intact at 66.88% since last 10 years, like they trust their own business and staying invested. No change at all. TECHNICALS: > The stock has taken long 3.5 years to make a wonderful rounding bottom pattern after taking support at Rs .23 levels. It has given breakout recently with huge volume concentration. Rounding bottom pattern is the most profitable chart pattern in technical studies. > On the chart stock is continuously in UPTREND since March 2020 Covid fall. > Increasing Long Volume towers as indicated by blue arrows at the bottom indicates that lot of accumulation is going on in the stock continuously. > Trading above 100 and 200 DMAs this talks about the strength in the bull run of this stock. Company's massive client base includes all big names in the industry. Few of them are Kawasaki, Honda, Royal Enfield, Vespa, Bajaj, Mahindra, Atul Auto, LML, Kirloskar and TVS. Company have strong financials and numbers are continuously increasing on YoY basis specially after the Covid slowdown. It has also increased its production capacity very recently, investing in R&D to add more products to its portfolio, aggressively focusing on increasing its export volume specially to developed countries. Now if we look at the market from broader perspective, Automobile industry is in good momentum specially all small and midcap Auto Ancillary business. The company have great client base. It certainly is a good buy. Fresh Buy - AT CMP i.e. Rs.241 Old Buy – Hold Target – Rs.420 Risk Management Tip: Never invest more than 5% of your capital in any single stock. Your likes and comments motivate me to bring more profitable studies like this. Happy Investing! ShareMktSchool
BSE:SAMKRGLong
by ShareMarketSchool
1
Breakout in LGBBROSTLD(Low PE stock)..Good Structure observed in LGBBROSLTD volumes picking up in uptrend and dry up in consolidation For momentum players Above 412 IF BO Happened then SL is below 325(this week low) Target is 483-550 For Long Term investing Buy at CMP Add on dip and weak if close below 270 Market Cap--₹ 1,239 Cr. Stock P/E--9.29(Low PE) ROCE--19.9 % ROE--16.8 % Mcap FF (Cr.)-- 643.66 Please maintain SL closing basis as this is small cap stock Risk 1-3% of your capital(so plan position sizing base on this) My trading view ideas past accuracy (for traget-1 ) around 71%(Please maintain your SL)
NSE:LGBBROSLTDLong
by nikhilgodhani