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CDSL for Swing Trade.As marketing Dynamics have shifted towards the bull run after a long period of consolidation. Nifty witnessed strong rally in last trading day and touched record high. Where lot of sectors and stocks have shown significant run up but CDSL is still available at 30% discount, If we look at its financials there is no red flags concerning its fundamentals. We can anticipate a promising Bull Run extending further in this stock. Technical CDSL has shown significant run up in last 3 months and formed a good trend reversal pattern last week in weekly timeframe. We can see trend line breakout above 1130. For further understanding of the price just add this stock in your watchlist. Buy-1155 Target- 1400, 1500
NSE:CDSLLong
by BullishLine
Best Fundamental Stock with high durability, Buy on levelPositional Trade For Next 2 - 3 Month, Return Upto 20 - 30% Quess Corp Ltd. Buy on level = 390 - 420 (Part Entry) Target = 465-505 (For Next 2 - 3 Month), 550 (For 6 Month) Fundamental view Company with Low Debt Book Value per Share Improving for last 2 years Promoter Holding = 56.74, with Zero Pledge Promoters have increased holdings from 51.90% to 56.74% in Mar 2023 qtr. Potential Buy Zone on P/E basis Current P/E = 27.7 Sector: Software & Services The sector includes companies focused on maintaining, developing and providing internet services, software development, and IT services. Products developed include online databases, interactive services, programming, and system services.
NSE:QUESSLong
by Trade_With_Prakash
BNB Price Prediction, will BNB’s price hit $528.24?BNB’s price at the same time last week was $307.79. It has moved by 1.24% in the past week and is currently at $308.85. Infact, in the past 24 hours, BNB has dumped by -1.70%. There is a slight bearish sentiment in the crypto market. The long term sentiment, however, remains bullish and BNB could hit $490.92 in 2024. The total circulating supply of BNB as of writing this article was $157,886,280 and the market cap of BNB remains at $48,765,651,999. BNB, BNB could hit $528.24 in 2023 BNB’s price prediction for the most bearish scenario will value BNB at $247.08 in 2023 BNB’s previous All Time High was on 10th May 2021 where BNB was priced at $686.31
Long
by tradewith_ritik
Price/Earnings: amazing interpretation #2In my previous post , we started to analyze the most popular financial ratio in the world – Price / Earnings or P/E (particularly one of the options for interpreting it). I said that P/E can be defined as the amount of money that must be paid once in order to receive 1 monetary unit of diluted net income per year. For American companies, it will be in US dollars, for Indian companies it will be in rupees, etc. In this post, I would like to analyze another interpretation of this financial ratio, which will allow you to look at P/E differently. To do this, let's look at the formula for calculating P/E again: P/E = Capitalization / Diluted earnings Now let's add some refinements to the formula: P/E = Current capitalization / Diluted earnings for the last year (*) (*) In my case, by year I mean the last 12 months. Next, let's see what the Current capitalization and Diluted earnings for the last year are expressed in, for example, in an American company: - Current capitalization is in $; - Diluted earnings for the last year are in $/year. As a result, we can write the following formula: P/E = Current capitalization / Diluted earnings for the last year = $ / $ / year = N years (*) (*) According to the basic rules of math, $ will be reduced by $, and we will be left with only the number of years. It's very unusual, isn't it? It turns out that P/E can also be the number of years! Yes, indeed, we can say that P/E is the number of years that a shareholder (investor) will need to wait in order to recoup their investments at the current price from the earnings flow, provided that the level of profit does not change . Of course, the condition of an unchangeable level of profit is very unrealistic. It is rare to find a company that shows the same profit from year to year. Nevertheless, we have nothing more real than the current capitalization of the company and its latest profit. Everything else is just predictions and probable estimates. It is also important to understand that during the purchase of shares, the investor fixates one of the P/E components - the price (P). Therefore, they only need to keep an eye on the earnings (E) and calculate their own P/E without paying attention to the current capitalization. If the level of earnings increases since the purchase of shares, the investor's personal P/E will decrease, and, consequently, the number of years to wait for recoupment. Another thing is when the earnings level, on the contrary, decreases – then an investor will face an increase in their P/E level and, consequently, an increase in the payback period of their own investments. In this case, of course, you have to think about the prospects of such an investment. You can also argue that not all 100% of earnings are spent paying dividends, and therefore you can’t use the level of earnings to calculate the payback period of an investment. Yes, indeed: it is rare for a company to give all of its earnings to dividends. However, the lack of a proper dividend level is not a reason to change anything in the formula or this interpretation at all, because retained earnings are the main fundamental driver of a company's capitalization growth. And whatever the investor misses out on in terms of dividends, they can get it in the form of an increase in the value of the shares they bought. Now, let's discuss how to interpret the obtained P/E value. Intuitively, the lower it is, the better. For example, if an investor bought shares at P/E = 100, it means that they will have to wait 100 years for their investment to pay off. That seems like a risky investment, doesn't it? Of course, one can hope for future earnings growth and, consequently, for a decrease in their personal P/E value. But what if it doesn’t happen? Let me give you an example. For instance, you have bought a country house, and so now you have to get to work via country roads. You have an inexpensive off-road vehicle to do this task. It does its job well and takes you to work via a road that has nothing but potholes. Thus, you get the necessary positive effect this inexpensive thing provides. However, later you learn that they will build a high-speed highway in place of the rural road. And that is exactly what you have dreamed of! After hearing the news, you buy a Ferrari. Now, you will be able to get to work in 5 minutes instead of 30 minutes (and in such a nice car!) However, you have to leave your new sports car in the yard to wait until the road is built. A month later, the news came out that, due to the structure of the road, the highway would be built in a completely different location. A year later your off-road vehicle breaks down. Oh well, now you have to get into your Ferrari and swerve around the potholes. It is not hard to guess what is going to happen to your expensive car after a while. This way, your high expectations for the future road project turned out to be a disaster for your investment in the expensive car. It works the same way with stock investments. If you only consider the company's future earnings forecast, you run the risk of being left alone with just the forecast instead of the earnings. Thus, P/E can serve as a measure of your risk. The higher the P/E value at the time you buy a stock, the more risk you take. But what is the acceptable level of P/E ? Oddly enough, I think the answer to this question depends on your age. When you are just beginning your journey, life gives you an absolutely priceless resource, known as time. You can try, take risks, make mistakes, and then try again. That's what children do as they explore the world around them. Or when young people try out different jobs to find exactly what they like. You can use your time in the stock market in the same manner - by looking at companies with a P/E that suits your age. The younger you are, the higher P/E level you can afford when selecting companies. Conversely, in my opinion, the older you are, the lower P/E level you can afford. To put it simply, you just don’t have as much time to wait for a return on your investment. So, my point is, the stock market perception of a 20-year-old investor should differ from the perception of a 50-year-old investor. If the former can afford to invest with a high payback period, it may be too risky for the latter. Now let's try to translate this reasoning into a specific algorithm. First, let's see how many companies we are able to find in different P/E ranges. As an example, let's take the companies that are traded on the NYSE (April 2023). As you can see from the table, the larger the P/E range, the more companies we can consider. The investor's task comes down to figuring out what P/E range is relevant to them in their current age. To do this, we need data on life expectancy in different countries. As an example, let's take the World Bank Group's 2020 data for several countries: Japan, India, China, Russia, Germany, Spain, the United States, and Brazil. To understand which range of P/E values to choose, you need to subtract your current age from your life expectancy: Life Expectancy - Your Current Age I recommend focusing on the country where you expect to live most of your life. Thus, for a 25-year-old male from the United States, the difference would be: 74,50 - 25 = 49,50 Which corresponds with a P/E range of 0 to 50. For a 60-year-old woman from Japan, the difference would be: 87,74 - 60 = 27,74 Which corresponds with a P/E range of 0 to 30. For a 70-year-old man from Russia, the difference would be: 66,49 - 70 = -3,51 In the case of a negative difference, the P/E range of 0 to 10 should be used. It doesn’t matter which country's stocks you invest in if you expect to live most of your life in Japan, Russia, or the United States. P/E indicates time, and time flows the same for any company and for you. So, this algorithm will allow you to easily calculate your acceptable range of P/E values. However, I want to caution you against making investment decisions based on this ratio alone. A low P/E value does not guarantee that you are free of risks . For example, sometimes the P/E level can drop significantly due to a decline in P (capitalization) because of extraordinary events, whose impact can only be seen in a future income statement (where we would learn the actual value of E - earnings). Nevertheless, the P/E value is a good indicator of the payback period of your investment, which answers the question: when should you consider buying a company's stock ? When the P/E value is in an acceptable range of values for you. But the P/E level doesn’t tell you what company to consider and what price to take. I will tell you about this in the next posts. See you soon!
NSE:HDFCBANKEducation
by Be_Capy
8
GM BREWERIES - 70% RETURNS!!!BUY - GM BREWERIES CMP - Rs. 599 Target - 1: Rs. 810 Target - 2: Rs. 1020 . . Technicals - 1) Bullish Flag BO, supported with high volumes. 2) Historical trend ranging from August' 15 to May' 18 resembles the current trend, indicating a bullish continuation. . . Fundamentals - GM Breweries Limited (NSE:GMBREW) is an Indian company engaged in the manufacture and sale of alcoholic beverages, including country liquor, Indian-made foreign liquor (IMFL), and bulk alcohol. The company operates primarily in the state of Maharashtra, India, and has a market capitalization of around INR 5,570 crores (as of April 12, 2023). 1) Financial Performance: In terms of financial performance, GM Breweries has been steadily growing its revenue over the past few years. In FY2022, the company's net revenue from operations was INR 1,229.38 crores, up from INR 925.59 crores in FY2021, which represents a growth rate of 33%. The company's net profit for FY2022 was INR 180.72 crores, up from INR 130.13 crores in FY2021, representing a growth rate of 39%. The company's profit margins have also been improving over the past few years. 2) Valuation: In terms of valuation, GM Breweries has a price-to-earnings (P/E) ratio of around 13.27x (as of April 12, 2023), which is below the industry average of around 23.27x. This suggests that the stock may be undervalued relative to its peers. The company's price-to-book (P/B) ratio is around 4.15x, which is also below the industry average of around 6.68x. . . This is just a view, please invest at your own risk. . . Follow me for more!
NSE:GMBREWLong
by nilakshgupta
FACT - 72% RETURNS!!!BUY - FACT CMP - Rs. 282 Target - 1: Rs. 380 Target - 2: Rs. 490 . . Technical - 1) Bullish Flag BO supported by high volumes. 2) Targets set using historical data, price movement, and retracement of the flag pole. . . Fundamentals - 1) Financials: Revenue: For the financial year 2021, the company had a total revenue of INR 2,818.96 crores, a decrease from the previous year's revenue of INR 3,266.04 crores. Net profit: The company reported a net profit of INR 215.16 crores for the financial year 2021, compared to a net loss of INR 209.43 crores in the previous year. Debt to Equity Ratio: As of March 2021, the company had a debt to equity ratio of 0.18, which suggests that the company has a low debt burden. Return on Equity (ROE): The ROE for the company for the financial year 2021 was 4.34%. 2) Valuation: The share price of FACT on the National Stock Exchange (NSE) is INR 27.05. The price-to-earnings (P/E) ratio for the company is 12.05, which is below the industry average P/E ratio of 15.67. The price-to-book (P/B) ratio for the company is 0.60, which is lower than the industry average of 1.48. This indicates that the stock may be undervalued. Overall, based on the financials and industry analysis, it appears that FACT is facing a challenging market environment. However, the stock's valuation metrics are relatively attractive, which may be indicative of undervaluation. . . This is just a view, please trade at your own risk. . . Follow me for more!
NSE:FACTLong
by nilakshgupta
Syngene international fundamental and technical analysis About company Syngene initiated their operations as a CRO in 1994 with services in chemistry and biology. Syngene International offers integrated solutions across research, development and manufacturing facilities. Sector Overview The Indian pharmaceutical industry is currently valued at $50Bn. India is a large exporter of pharmaceuticals with over 200 countries that receive Indian Pharma exports. The industry growth has been at a CAGR of 9.43% over the last 9 years. Sector Outlook The pharma industry in India is expected to reach $65Bn by 2024 & $130Bn by 2030. India is the world’s largest supplier of generic medications; which account for 20% of the worldwide supply by volume & supply about 60% of the global vaccination demand. Company’s business Syngene International has over 400 active clients and have 15 collaborations with the top 20 pharmaceutical companies. Their sector expertise includes pharmaceuticals, biotech, nutrition, animal health, consumer goods and speciality chemicals. About the segments Syngene International has their presence in the following segments: •Discovery Services •R&D Centres •Development Services •Manufacturing Services Q3 Numbers Revenue up from ₹768 Cr in Q2 to ₹787 Cr in Q3 OPM up from 28% to 29% NPAT up from 102Cr to 110Cr EPS up from ₹5.53 to ₹2.73 Key Highlights: Performance is excluding impact of Remdesivir manufacturing which had high sales growth the during first quarter of the last financial year. No sales have been recorded in 9MFY23. Revenue from operations grew by 23% YoY, excluding Remdesivir; 28% YoY Revenue growth driven by Discovery Service division & manufacturing division; Biologics. Capex for 9M at HKEX:50 mn Started a program of HKEX:30 mn for a new facility & the Capex will be reflected on the books in the next few Qtrs depending on execution EBITDA up 15% YoY Effective tax rate up from 19% to 21.5% YoY; however, they have a MAT credit of ₹160Cr that will be utilised over the next few years & will keep cash outflow for income tax at minimum pertained tax level Depreciation and amortisation up by 21% YoY due to new investments Recently completed facility will offer end-to-end solutions in drug production development & manufacturing for clinical supplies for small & large molecules Expect the completion of additional 24,000 sqft of lab space, a new compound & mgmt facility in the current qtr. Key Strengths Increase in number of collaborations with emerging biopharma companies Expect to start GMP production this quarter with the completion of sterile fill-finish facility for small scale clinical manufacturing FIIs and DIIs have increased holdings QoQ PAT growth at 5% YoY Completed the US FDA, EMEA and MHRA regulatory audits for commercial scale biologics manufacturing facility Received cGMP certifications from regulatory agencies which put them on track to manufacture drug substance on a commercial scale Weakness PAT growth for full year expected to be in single digits Operating EBITDA margin down from 31.7% in Q3 FY22 to 29.4% in Q3 FY23 EBITDA margin for 9M at 29.7% compared to 31% last year Hedge losses in Q3 FY23 at ₹16Cr compared to a hedge gain of ₹20Cr EBITDA growth lower than revenue growth due to low scale and capacity utilisation in manufacturing Material costs up by 6% YoY Lowest dividend yield in pharma sector Finance cost up from ₹9.4Cr to ₹13.7Cr due to rising interest rates; • Numbers and Ratios Market Cap: ₹24,076 Cr. Stock P/E: 55.9 RoCE: 13.3% RoE: 13.6% PEG: 7.25 Price to Sales: 8.14 Int Coverage: 14.3 NPM: 13.9% D/E: 0.31 • Shareholding Pattern Promoter: 64.86% FII: 16.87% DII: 7.03% Public: 10.77% Others: 0.47% Conclusion The company has expanded its facilities and capabilities, receiving regulatory certifications for commercial-scale biologics manufacturing. While operating EBITDA margin has declined, completion of a sterile fill-finish facility & GMP production is expected to boost profitability.
BSE:SYNGENE
by biokon70
SONACOMS - 90% RETURNS!!!BUY - SONACOMS CMP - Rs 422 Target - 1: Rs. 593 Target - 2: Rs. 806 . . Technical - 1) Bullish Cypher Harmonic Pattern. 2) The stock is at support. 3) Targets have been set using Fibonacci Retracement. . . Fundamentals - 1) Company has opened a new manufacturing plant in Pune. 2) 62.66% YoY growth in EPS. 3) FII holding has increased QoQ. 4) DII holding increased by 8.4% QoQ. 5) The high-value, the high-margin product portfolio is likely to help the company outperform the industry. . . Comment: This chart is for educational purposes only. . . Follow me for more!
NSE:SONACOMSLong
by nilakshgupta
Price / Earnings: Interpretation #1In one of my first posts , I talked about the main idea of ​​my investment strategy: buy great “things” during the sales season . This rule can be applied to any object of the material world: real estate, cars, clothes, food and, of course, shares of public companies. However, a seemingly simple idea requires the ability to understand both the quality of “things” and their value. Suppose we have solved the issue with quality (*). (*) A very bold assumption, I realize that. However, the following posts will cover this topic in more detail. Be a little patient. So, we know the signs of a high-quality thing and are able to define it skilfully enough. But what about its cost? "Easy-peasy!" you will say, "For example, I know that the Mercedes-Benz plant produces high-quality cars, so I should just find out the prices for a certain model in different car dealerships and choose the cheapest one." "Great plan!" I will say. But what about shares of public companies? Even if you find a fundamentally strong company, how do you know if it is expensive or cheap? Let's imagine that the company is also a machine. A machine that makes profit. It needs to be fed with resources, things are happening in there, some cogs are turning, and as a result we get earnings. This is its main goal and purpose. Each machine has its own name, such as Apple or McDonald's. It has its own resources and mechanisms, but it produces one product – earnings. Now let’s suppose that the capitalization of the company is the value of such a machine. Let's see how much Apple and McDonald's cost today: Apple - $2.538 trillion McDonald's - $202.552 billion We see that Apple is more than 10 times more expensive than McDonald's. But is it really so from an investor's point of view? The paradox is that we can't say for sure that Apple is 10 times more expensive than McDonald's until we divide each company's value by its earnings. Why exactly? Let's count and it will become clear: Apple's diluted net income - $99.803 a year McDonald's diluted net income - $6.177 billion a year Now read this phrase slowly, and if necessary, several times: “The value is what we pay now. Earnings are what we get all the time” . To understand how many dollars we need to pay now for the production of 1 dollar of profit a year, we need to divide the value of the company (its capitalization) by its annual profit. We get: Apple - $25.43 McDonald’s - $32.79 It turns out that in order to get $1 profit a year, for Apple we need to pay $25.43, and for McDonald's - $32.79. Wow! Currently, I believe that Apple appears cheaper than McDonald's. To remember this information better, imagine two machines that produce one-dollar bills at the same rate (once a year). In the case of an Apple machine, you pay $25.43 to issue this bill, and in the case of a McDonald’s machine, you pay $32.70. Which one will you choose? So, if we remove the $ symbol from these numbers, we get the world's most famous financial ratio Price/Earnings or P/E . It shows how much we, as investors, need to pay for the production of 1 unit of annual profit. And pay only once. There are two formulas for calculating this financial ratio: 1. P/E = Price of 1 share / Diluted EPS 2. P/E = Capitalization / Diluted Net Income Whatever formula you use, the result will be the same. By the way, I mainly use the Diluted Net Income instead of the regular one in my calculations. So do not be confused if you see a formula with a Net Income – you can calculate it this way as well. So, in the current publication, I have analyzed one of the interpretations of this financial ratio. But, in fact, there is another interpretation that I really like. It will help you realize which P/E level to choose for yourself. But more on that in the next post. See you!
NSE:NIFTYEducation
by Be_Capy