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Invest in ZENTEC: Pioneering Next-Gen Defence Solutions◉ Abstract Zen Technologies Ltd is set for strong growth in the Indian defense market. The market is expected to rise from USD 17.40 billion in 2024 to USD 23.05 billion by 2029. The company focuses on advanced training and counter-drone solutions, and is benefiting from government initiatives of promoting indigenous production under the “Make in India” project. Moreover, Indian Govt. plans to double defense spending by FY30. A recent partnership with AVT Simulation will help Zen expand in the U.S. market. With a solid order book of ₹3,500 Crores and a revenue goal of ₹900 Crores for FY2025, Zen is investing heavily in research and development. Although its high PE ratio may suggest it’s overvalued, the company’s strong finances and growth plans indicate good potential for investors. Read full analysis here: ◉ Introduction The Indian Defence Market is expected to experience significant growth in the coming years. According to a recent report, the market size is estimated to be USD 17.40 billion in 2024 and is projected to reach USD 23.05 billion by 2029. ◉ Growth Drivers ● Government Initiatives: The Indian government is heavily promoting indigenous production through initiatives like "Make in India," which aims to reduce dependency on imports and bolster local manufacturing capabilities. ● Increased Defence Spending: India's defence budget is expected to double between FY24 and FY30, with significant allocations for new weapons procurement and R&D. For FY 2023-2024, the budget for new weapons procurement is set at USD 19.64 billion, along with USD 2.79 billion for research and development. ● Geopolitical Tensions: Ongoing border disputes with neighbouring countries such as China and Pakistan necessitate increased military spending and modernization efforts. ● Export Opportunities: Indian defence exports have surged significantly, rising from USD 200 million in FY17 to USD 2.6 billion in FY24, with expectations to reach USD 7 billion by FY30. The government's focus on enhancing export relationships with countries like Italy, Egypt, and Saudi Arabia further supports this growth. This in-depth report shines the spotlight on Zen Technologies , a mid-cap defence company that has carved a niche for itself in the Indian defence landscape. With a keen focus on pioneering training solutions and cutting-edge counter-drone technologies, Zen Technologies has emerged as a significant player in the industry. ◉ Investment Advice 💡 Buy Zen Technologies NSE:ZENTEC ● Buy Range - 2000 - 2050 ● 1st Target - 2500 - 2600 ● Potential Return - 25% - 30% ● 2nd Target - 2800 ● Potential Return - 40% ● Approx Holding Period - 12-14 months ◉ Company Overview Zen Technologies Limited, incorporated in 1996, specializes in designing, developing, and manufacturing cutting-edge combat training solutions and Counter-drone solutions for defence and security forces. The company is committed to the indigenization of technologies that benefit the Indian armed forces, state police forces, and paramilitary forces, providing them with innovative training solutions to enhance their combat readiness. With its headquarters in Hyderabad, India, Zen Technologies Limited has a significant global presence, with offices in India, UAE, and the USA. This widespread presence enables the company to effectively support its clients and partners worldwide. ◉ Market Capitalization - ₹18,858 Cr. ◉ Expansion into U.S. Market ➖ Zen Technologies recently signed a Memorandum of Understanding (MoU) with AVT Simulation to enhance its presence in the U.S. defence sector. This partnership aims to leverage AVT’s expertise in simulation technologies to introduce Zen's products to U.S. defence agencies. ◉ Revenue Projections for FY2025 ➖ Despite a strong start to the fiscal year, with revenues reaching ₹500 Crores in the first half, Zen Technologies' management has set a cautious revenue target of ₹900 Crores for FY2025. ◉ Expansion Plans ➖ Zen Technologies aims to expand into the Navy and Air Force segments through organic growth and acquisitions. ➖ The company plans to acquire Indian and overseas businesses, with deal sizes between ₹100-₹300 Crores. ◉ Investment in R&D ➖ Zen Technologies is investing heavily in research and development (R&D) to drive innovation and stay ahead of the curve. ➖ The company is currently developing new products that are reportedly two generations more advanced than those showcased in 2021. This focus on R&D underscores Zen Technologies' dedication to delivering cutting-edge solutions that meet the evolving needs of its customers. ◉ Order Book Status ➖ A substantial order pipeline of ₹3,500 Crores is in place, with ₹1,200 Crores expected to be executed in the next financial year. ➖ Order inflow is forecasted to pick up significantly towards the end of Q3 and into Q4 of FY2025, positioning for continued growth and success. ◉ Margin Expectations ➖ Management targets 35% EBITDA margin and 25% PAT margin, despite current gross margin pressures due to product and geographical mix changes. ◉ Revenue & Profit Analysis ● Year-on-year ➖ The company's FY24 performance was marked by impressive growth, with sales reaching ₹440 crore, representing a 100% year-over-year increase. ➖ EBITDA also surged significantly, rising to ₹181 crore from ₹73 crore in FY23. ➖ Notably, the company achieved a substantial EBITDA margin of 41%, highlighting its operational efficiency and profitability. ● Quarter-on-quarter ➖ The company's recent quarter sales stood at ₹242 crore, a decline from the previous quarter, but a substantial increase from ₹66 crore in the same quarter last year. ➖ EBITDA dropped to ₹80 crore from ₹111 crore in the previous quarter. ◉ Valuation ● P/E Ratio ➖ The stock's current price-to-earnings (PE) ratio of 93.1 appears overstretched compared to its industry average PE of 51.6. ➖ Furthermore, relative to its 1-year median PE of 76.5, the stock seems overvalued, suggesting potential downside risks. ● PEG Ratio ➖ When we look at the PEG ratio of just 1.64, the stocks looks fairly valued relative to its anticipated earnings growth. ◉ Cash Flow Analysis ➖ The company's operating cash flow experienced a substantial decline in FY24, plummeting to ₹13 crore from a robust ₹116 crore in FY23. ◉ Debt Analysis ➖ With a debt-to-equity ratio of just 0.04, the company enjoys a virtually debt-free status, underscoring its robust financial health and providing a solid foundation for future expansion. ◉ Top Shareholders ➖ In the September quarter, promoters reduced their stake to 51.26% from 55.07% in the previous quarter. ➖ Foreign Institutional Investors (FIIs) have significantly raised their holdings to 5.72%. ➖ Domestic Institutional Investors (DIIs) also increased their stakes, now at 8.05%, up from 3.37% in June. ➖ Conversely, retail investors sold shares, decreasing their holdings to 34.5% from 37.94% in June 2024. ◉ Mutual Fund Exposure ➖ Institutional holdings in Zen Technologies skyrocketed by 550% to 42 lakh shares in October 2024, with 23 funds taking a significant stake, up from 6.4 lakh shares in July. ◉ Bulk Deal Alert ➖ On December 3, 2024, Motilal Oswal Mutual Fund acquired over 11 lakh shares of Zen Technologies through a bulk deal. ◉ Technical Standings ➖ The monthly chart clearly illustrates a strong upward trend in the stock, marked by a series of higher highs and higher lows. ➖ The daily chart also presents a bullish scenario, with the formation of an Ascending Triangle pattern. ➖ A fresh breakout from this pattern is likely to propel the stock to new highs. ◉ Conclusion Following a comprehensive analysis of fundamental and technical indicators, we firmly believe that Zen Technologies is well-positioned for robust growth, underpinned by its innovative solutions and strong research and development capabilities. The company's strategic expansion plans into key markets, particularly the United States, are expected to unlock vast opportunities, driving significant growth in revenue and profitability. This, in turn, is likely to have a positive impact on the company's top-line and bottom-line performance, as well as its share price.
NSE:ZENTECLong
by GoodluckCapital
DIVGIITTSHello Everyone I hope you all will be doing well in your life and your investing as well. Here I have brought a stock that is mostly ready to give Breakout. Divgi TorqTransfer Systems is the name of the stock. CMP is 653. Its IPO price was 590. And it's near that price. Mostly it will not be that 590—IPO price, 580 must be a strong support. Once it gives a breakout above 670, ready to go long. Target as per fibonacci. About  Incorporated in 1964, Divgi Torqtransfer System Ltd manufactures Auto Components and Parts Key Points  Business Overview: Divgi TTS is India’s largest EV Transmission manufacturer. It provides solutions for Manual Transmission and Automatic Transmission. The company specializes in crafting drivetrain systems and related components for a diverse array of vehicles, spanning passenger cars, utility vehicles, commercial vehicles, and agri- cultural machinery. Product Categories: a) 4WD b) MT and synchronisers c) EV Powertrain d) Automatic Transmission Product Profile: a) 4WD Transfer case b) Precision Grinding and Honing operation for transmission components c) Components d) Synchronizers e) EV Assembly f) Transfer Case Export Components g) Manual Transmission h) Automatic /Dual Clutch Transmission Components h) RWD Applications Production Facilities: The company has 4 manufacturing units in Maharashtra and Karnataka, with an installed capacity in terms of pieces per year: Transfer Case-ESOF ~30,000 Transfer Case- Mech ~30,000 TM Coupler-Nextrac ~23,100 Synchronizers Assembly ~504,000 Synchronizers Assembly ~14,58,600 Torq Transfer System ~168,000 Components Gears ~588,000 EV Transmission ~100,000 Clientele: Tata, Mahindra, Toyota Kirloskar, Borg Warner, Force Motors, Ashok Leyland Export Countries: USA, Mexico, UK, Portugal, Germany, China, Korea, and Thailand This is just to boost my confidence. No Suggestions for buying. Disclosure: I am not SEBI registered. The information provided here is for educational purposes only. I will not be responsible for any of your profit/loss with these suggestions. Consult your financial advisor before making any decisions.
NSE:DIVGIITTSLong
by Alleyshah
Mahindra and Mahindra updatecurrently market is on extreme supply if market breaks above 3000 we can expect level up to 3200 if else market can take a retracement for strong demand near 2800 or sell will be continued Hit the like button to Rock !! Show some energy !! Note : ⨻ Check the live market updates and analysis yourself before buy or sell. ⨺ Am not giving any advisory or signals its just my idea for upgrade my knowledge in trading for myself ⨹ This is my pre and post market analysis and my trading journey. Not a suggestion to buy or sell. ⫸ You are responsible for your trading not me ⫷ happy trading 🥰
NSE:M_MLong
by TRADING_MASTER_DAVIS
Electrosteel: The Dark Horse in the Ductile Iron Pipe Industry!Summary ● Electrosteel Castings Limited (ECL) is a prominent Indian company specializing in ductile iron (DI) pipes, fittings, and cast iron (CI) pipes. With a market cap of ₹13,640 Cr, ECL generates 88% of its revenue from India, holding a 28% domestic market share. ● Over the last 3 years, ECL recorded a 29% sales CAGR and 97% profit growth. Its current PE ratio of 15.3 is below the industry average, suggesting undervaluation. ● ECL plans to boost DI pipe capacity to 1 million tons by FY26. The ductile iron pipes industry is poised for growth due to urbanization and government initiatives. ● With its strong market position and robust financials, ECL is well-positioned to capitalize on this opportunity and deliver shareholder value. Investment Advice by Goodluck Capital Buy Electrosteel Casting NSE:ELECTCAST ● Best Buy Range - 210 - 220 ● Target - 275 - 280 ● Potential Return - 28 - 30% ● Approx holding period 8 - 12 months Company Overview Electrosteel Castings Limited produces and supplies ductile iron (DI) pipes, fittings, and accessories, as well as cast iron (CI) pipes, both in India and globally. Their DI pipes and fittings are used in various applications such as water transmission, potable water distribution, industrial water supply, ash-slurry systems, fire-fighting systems, desalination, sewerage, stormwater drainage, and recycling. They also offer ductile iron flange pipes for temporary installations and restrained joint pipes. Additionally, the company supplies metallurgical coke, sinter, sponge iron, ferro silicon, pig iron, and silico manganese ferro alloy, along with cement branded as SPL GOLD. Originally named Dalmia Iron and Steel Ltd, the company was established in 1955 and is headquartered in Kolkata, India. Market Capitalization - ₹ 13,640 Cr. Peer Companies ● Jindal Saw NSE:JINDALSAW - ₹ 22,576 Cr. ● Jai Balaji Industries NSE:JAIBALAJI - ₹ 19,682 Cr. ● Welspun Corp. NSE:WELCORP - ₹ 18,092 Cr. Technical Aspects ● In January 2008, the stock reached an impressive peak of ₹71 but subsequently faced a significant decline. ● The price eventually stabilized around ₹8, leading to an extended period of consolidation. ● During this time, a Rectangle pattern, often referred to as the Darvas Box pattern, took shape. ● After breaking out of this pattern in May 2023, the stock price surged past its previous strong resistance level in October 2023. ● Since then, the stock has maintained its upward momentum and is currently trading just shy of its historical high of ₹226. ● Expectations are high that this momentum will sustain and lead the stock to reach new peaks in the near future. Relative Strength ● The chart clearly illustrates that Electrosteel Castings has greatly outperformed the Nifty Smallcap 250 index, boasting an impressive annual return of 219%, which is truly an outstanding achievement. Revenue Break-up ● Product wise break-up ➖ The primary source of the company's revenue comes from the production of Ductile Iron pipes and fittings, which alone makes up about 86% of its total income. Additionally, the company manufactures Cast Iron pipes, contributing roughly 2.8% to the overall revenue. ● Location wise break-up ➖ The company generates nearly 88% of its revenue from India, where it holds a 28% share of the domestic market. The remaining 12% of its income is sourced from international markets. Revenue & Profit Analysis ● Over the last three years, this stock has recorded an impressive compounded annual growth rate (CAGR) of 29% in sales. Additionally, the total profit growth during this period has been remarkable, achieving a staggering 97% CAGR. ● Furthermore, the company has successfully maintained an operating profit margin of 16%, a notable increase from 10% in FY24. ● For the fiscal year 2024, earnings per share (EPS) have surged from 5.31 in fiscal year 2023 to an impressive 11.97. Currently, the EPS for the past twelve months is at 14.69. ● A closer look at the quarterly results shows that the company reached a record high in quarterly sales, reporting 2,012 crore in June, up from 2,004 crore in the March quarter. This figure significantly exceeds last year's June quarter sales of 1,685 crore. Product Demand Analysis ● Inventory Turnover Ratio ➖ Current Inventory Turnover - 1.82 ➖ Inventory Turnover 3 years ago - 1.70 ➖ These figures indicate that product demand has risen over the past three years. Valuation ● P/E Ratio ➖ The company's current price-to-earnings (PE) ratio is 15.3, which is below its one-year median PE of 15.8. Compared to the industry average PE of 36.76, this suggests that the stock is significantly undervalued at present. ● P/B Ratio ➖ The stock seems to be undervalued, with a price-to-book (PB) ratio of 2.67, particularly when compared with the industry average PB ratio of 5.52. ● Intrinsic Value ➖ Electrosteel Castings is presently priced at ₹220, which is significantly below its intrinsic value of ₹258, suggesting that the stock is currently undervalued. ● Peg Ratio ➖ A PEG ratio of 0.47 suggests that the stock is undervalued relative to its expected earnings growth. Cash Flow Analysis ● The operating cash flow has experienced an impressive leap, climbing to 806 crore from 452 crore in FY23. This remarkable growth highlights the company's robust financial health. Furthermore, the current CFO/PAT ratio stands at 0.9 of its five-year average, reflecting the company's exceptional capability in turning profits into cash efficiently. Debt Analysis ➖ The company's existing debt stands at Rs. 2,332 crore, a figure that is notably low when juxtaposed with its market capitalization of Rs. 13,655 crore. ➖ With a debt-to-equity ratio of merely 0.46, it is clear that the debt burden is manageable for a capital-intensive enterprise, allowing the company ample room to pursue further financing if required. ➖ Examining the balance sheet shows a remarkable decrease in debt, which has fallen from Rs. 2,667 crore last year to the present Rs. 2,332 crore. Capex Plans ➖ The ongoing capital expenditure stands at around ₹700 crores and is on track, with ₹410 crores already utilized by the end of Q1 FY25. ➖ There are ambitious plans to boost the total manufacturing capacity of DI pipes to 1 million tons by FY26. ➖ Additionally, land is being acquired in Odisha for a new Greenfield project focused on DI pipes and fittings. Shareholding Pattern ➖ The promoters currently hold about 46.22% of the company, up from 44.08% in December 2023, indicating growth during the March quarter. ➖ Foreign Institutional Investors (FIIs) have been consistently increasing their stakes, with total holdings reaching 21.16% as of June 2024, a significant rise from 14.93% in June 2023. On a quarter-to-quarter basis, ➖ Domestic Institutional Investors (DIIs) have raised their holdings to 0.44% from 0.36% in the March quarter; however, this represents a notable decline from the 1.68% recorded in the same period last year. Ductile Iron Pipes Industry Outlook ● Advantages of choosing DI pipes over PVC pipes ➖ According to the analysis of the ductile iron pipes market in India, these pipes are made up of approximately 90% recycled materials and are fully recyclable. ➖ Additionally, using ductile iron pipes instead of PVC can lead to an energy consumption reduction of around 40%. ● Ductile Iron Pipes Market Growth ➖ Ductile iron pipes play a crucial role in public infrastructure, serving irrigation, drinking water distribution, sewage, and wastewater systems. ➖ With India's economic growth, the rise of smart cities and projects like Bharatmala Priyojana and the Narmada Valley Development Project is driving the demand for extensive pipeline networks, boosting the ductile iron pipes market. ➖ Factors such as increasing urbanization and government initiatives like Jal Jeevan Mission, AMRUT, and Smart City Mission, focused on delivering drinking water to households, are further fueling this demand. Conclusion ● After thoroughly examining both the technical and fundamental factors, we have concluded that Electrosteel Castings is well-positioned for substantial growth, driven by the increasing market demand for ductile iron pipes, which is likely to positively impact its share price as well.
NSE:ELECTCASTLong
by GoodluckCapital
4
NATCO PHARMA: A Multiyear Breakout Set to Double Your Investment Investment Advice by Goodluck Capital (SEBI Registered) Buy Natco Pharma NSE:NATCOPHARM Buy Range- 1210 - 1220 Target- 1950 - 1960 Potential Return- 60-62% Approx investment period 12 - 14 months TECHNICAL ANALYSIS NSE:NATCOPHARM (1) Back in 2017, Natco Pharma encountered several rejections around the 1,050 level, leading to a subsequent decline. (2) The 500 level has emerged as a crucial support point, allowing the stock to bounce back from this threshold. (3) Although the stock made an attempt to surpass its trendline resistance in July 2021, it ultimately fell short, resulting in another correction before finding support at the 500 level once more. (4) Since March 2023, the stock has been on an upward trajectory, successfully breaking through the resistance level in July 2024. Following this significant multi-year breakout , there is a strong expectation that the stock will remain above the breakout zone, paving the way for a robust upward rally. ● ENTRY & EXIT LEVELS - Look for the best buy levels between 1,210 and 1,220, as this is also the breakout level. However, if the stock begins to consolidate at that level and subsequently breaks out, the upper boundary of this consolidation could present another lucrative entry point. - Based on the chart analysis, it appears that there is a 60% upside potential for this stock, hovering around the 1,950-1,960 level. Moreover, there is a possibility that the stock may surpass this level. FUNDAMENTAL ANALYSIS NSE:NATCOPHARM ● PE RATIO - The stock's current PE stands at 16.9, slightly higher than the 1-year median PE of 14.2 but lower than the 5-year median PE of 26.3. - With an industry PE of 36.6, the stock appears undervalued. ● PB RATIO - The present PB ratio for this stock stands at 3.96, indicating a slightly high valuation but not reaching overvalued territory. ● DEBT TO EQUITY RATIO - The company's debt to equity ratio of 0.06 indicates that it is nearly debt-free. ● PROFIT & LOSS ANALYSIS - Over the last three years, this stock has experienced a remarkable compounded annual sales growth rate of 25%. - The cumulative profit increase over the past three years has been an impressive 49%, indicating a strong upward trend. - The profit margin has seen a significant boost, rising to 44% from 35% YoY. - The EPS growth for FY24 is remarkable, soaring to 77.5 compared to just 39 in FY23. ● CASH FLOW ANALYSIS - There is a substantial increase in operating cash flow, jumping by almost 43% to 1,212 crore from 849 crore in FY23. ● SHAREHOLDING PATTERN - The promoters have consistently held their stakes at 49.71% over the past three quarters. - Over the last four quarters, FIIs have been steadily increasing their investments, in contrast to DIIs who have been offloading their stakes.
NSE:NATCOPHARMLong
by GoodluckCapital
5
IDFC First Bank : 34% to 218% Upside Potential#IDFC First Bank : 01 Jul 2024 "Life is Simple, we make it complicated, So is Trading. Discover Simple, Yet POWERFUL IDEAS." In Play : HH : HL Summary • CMP : 82 • Clean Price Action with Vol favor's BULLS FOOT PRINT • Nice CONSOLIDATION of around 8-10 months • Trading right AROUNG VP mountains - ATH : 100.70 Conclusion • CMP 82 • Looks good for going NORTH • Higher Levels could be around o Imm Higher Levels : 110/124 o Potential Levels : 168/262 Wish You Happy & safe trading "Always Respect Risk" Happy Trading Jai Hind Jai Bharat
NSE:IDFCFIRSTBLong
by DhirajSinghBais
10
Jayshree Tea : 58% to 1284% upside potential#Jayshree Tea 13 Jun 2024 "Life is Simple, we make it complicated, So is Trading. Discover Simple, Yet Powerful Ideas." In Play : HH : HL Summary • CMP : 109.65 • Clean Price Action with Vol favor's BULLS FOOT PRINT with FALSE BREAKDOWN • Nice consolidation for the past 36 months/3 years • Trading right AROUNG VP mountain Conclusion • CMP 109.65 • Looks good for going NORTH • Higher Levels could be around o Short Term : 173/236 o Mid/Long Term : 480/796/1514 Wish You Happy & safe trading "Always Respect Risk" Happy Trading Jai Hind Jai Bharat
NSE:JAYSREETEALong
by DhirajSinghBais
4
TIINDIA BRAKEOUTTTTTTTThis posts are my personally traded stocks daily,I take trade mostly in all the stocks which i post and many more too which i am unable to post,as tradeing view limits my post to only 10 stocks per day,Some hits stoploss,some hits trailing stop loss,some give targets,some ends in cost to cost,some give Very huge profits too,So dont judge this channel on any one trade or one day,U take average of all trades and see the average returns,I am not responsible for any kind of losses or profits u face,PLEASE TRADE ON YOUR OWN RISK. BUY ABOVE HIGH OF BRAKEOUT CANDLE BUY AT 2739.8 SL AT 2608.05
NSE:TIINDIALong
by PSYCHOLOGY_BREAKOUT_TRADER