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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
Thangamayil shining: The strong financials caused a price surge!Company Overview Thangamayil Jewellery Limited (TMJL) is a rapidly growing company in India with a chain of retail jewellery stores in Tamil Nadu. They specialize in selling Gold, Silver, Diamonds, and Platinum, with gold being the main source of income. The majority of their ornaments are purchased from dealers in states like Andhra Pradesh, Gujarat, Kerala, and West Bengal for sale in their stores. Established in 1947, Thangamayil is headquartered in Madurai, India. Market Capitalization ● Current Market Cap - ₹ 5,128 Cr. ● Market Cap 3-years back - ₹ 802 Cr. ● The figures indicate that the company has increased over six times in the past three years, which is truly remarkable. Revenue & Profit Growth ● In the last three years, this stock has demonstrated an impressive compounded annual growth rate of 28% in its sales figures. ● Meanwhile, the total profit growth during this period has been a modest 12%. ● The company has successfully maintained a operating profit margin of 6%, which has risen from 4% in FY24. ● For the fiscal year 2024, the earnings per share have seen a remarkable increase, soaring from 29.10 in fiscal year 2023 to 44.91. Increasing Product Demand ● Inventory Turnover Ratio ➖ This ratio typically assists in determining whether the growth in sales is primarily due to rising product prices or if it is also influenced by increased demand for the product. ➖ Current Inventory Turnover - 3.14 ➖ Inventory Turnover 3 years ago - 2.63 ➖ These figures indicate that product demand has risen over the past three years. Valuation ● P/E Ratio The company's present price-to-earnings (PE) ratio stands at 42.3, significantly higher than its 1-year median PE of 31. When we look at the industry average PE of 31.6, it indicates that the stock might be considered somewhat overvalued at this time. ● PEG Ratio The company has a PEG ratio of 1.3, indicating that its current P/E ratio is valid. ● Intrinsic Value ➖ Thangamayil Jewellery is currently trading at ₹1870, which is nearly 2.5 times its intrinsic value of ₹764, indicating that the stock is overvalued at this moment. ➖ When we compare Thangamayil to its competitors, such as Titan and Kalyan Jewellers, some interesting insights emerge. Titan's current market price (CMP) stands at ₹3560, which is nearly 5.5 times its intrinsic value of ₹652. Meanwhile, Kalyan Jewellers has a CMP of ₹545, approximately 4.7 times its intrinsic value of ₹115. ➖ These numbers don't necessarily indicate that Titan and Kalyan Jewellers are overvalued; rather, they suggest that Thangamayil could be an attractive investment choice. Debt Analysis ● Debt to Equity Ratio ➖ The company carries a debt of approximately ₹532 Cr., resulting in a debt-to-equity ratio of 1.08. ➖ When discussing debt, it's important to note that for a small-cap company, this isn't necessarily a major concern. The key factor to consider is whether the company can consistently meet its loan interest payments. ➖ To assess this, we should examine the interest coverage ratio. ● Interest Coverage Ratio With an interest coverage ratio of 5.62, it’s evident that the company is well-equipped to manage its loan interest payments regularly. Cash Flow Analysis ● Operating cash flow has seen a remarkable surge, soaring to 330 crore from just 10 crore in FY23. ● The CFO/PAT ratio is currently at 0.74 of the five-year average, indicating that the company is quite proficient at converting its profits into cash. Shareholding Pattern ● The promoters have maintained their 67.33% stake for the last three quarters. ● Foreign Institutional Investors (FIIs) have been steadily raising their stakes since June 2023, now holding 1.08%. ● Domestic Institutional Investors (DIIs) have also grown their stakes to 12.08% in June 2024, up from 11.46% in June 2023. ● At the same time, retail investors have been consistently selling their shares over the past few quarters. Mutual Fund Holding ● Notable small-cap funds such as SBI Small Cap Fund and DSP Small Cap Fund have made substantial investments in this stock, representing 0.63% and 1.55% of their total assets under management, respectively. ● Additionally, ICICI Prudential Exports and Services Fund has recently added (in July 2024) its position in this stock, accounting for approximately 1.11% of its overall portfolio value. Technical Aspects ● From a technical standpoint, this stock appear to be currently overextended. Any pullbacks could provide a valuable opportunity to take positions. ● Stock Volume & Delivery surged by 3.4 times & 3.2 times respectively vis-a-vis their 5 day average with a 5.48% move in price. Conclusion While the company primarily functions in Tamil Nadu, it's fascinating to note that this state accounts for the largest portion (40%) of India's overall gold consumption. Furthermore, the company is gearing up to make its mark in the Chennai market by launching a flagship store along with 3-4 satellite locations. Given the increasing demand for gold jewelry, we anticipate that Thangamayil Jewellery will thrive in the industry in the years ahead.
NSE:THANGAMAYLLong
by GoodluckCapital
1
A Healthcare Face-Off: Apollo vs. Narayana◉ Abstract India's hospital industry is growing rapidly, valued at ₹8.35 lakh cr. ($98.98 B) in 2023, with a projected CAGR of 5.8-8.0% from 2024 to 2032. Apollo Hospitals and Narayana Hrudayalaya are two leading players, with Apollo being the largest private hospital network and Narayana Hrudayalaya known for cost-effective cardiac care. Narayana Hrudayalaya appears undervalued with a P/E ratio of 33.5 and more profitable (ROCE: 27%), making it an attractive investment option. Apollo Hospitals seems overvalued with a P/E ratio of 83.4 but remains viable for strategic entry points. Both companies are poised for growth driven by increasing healthcare demands and infrastructure expansion. Read full analysis here........ ◉ Introduction The hospital industry in India is experiencing significant growth, with the market valued at approximately ₹8.35 lakh cr. ($98.98 B) in 2023. Projections indicate a robust compound annual growth rate (CAGR) of 5.8% to 8.0% from 2024 to 2032, potentially reaching between 13.87 lakh cr. and 16.33 lakh cr. ($164.4 B - $193.6 B) by 2032, depending on various market analyses. ◉ Growth Drivers of the Indian Hospital Industry ● Increased Healthcare Expenditure: ➖ Rising public and private spending on healthcare, with government health expenditure aiming for 2.5% of GDP by 2025. ➖ Expanding middle class with higher disposable incomes and greater access to health insurance. ● Technological Advancements: ➖ Adoption of healthcare technologies such as telemedicine and robotic automation, improving service delivery. ➖ National Digital Health Blueprint promoting innovations in e-health. ● Policy Support and Foreign Investment: ➖ Favourable government policies allowing 100% FDI in healthcare, attracting significant investments. ➖ Public-private partnerships enhancing healthcare access, especially in underserved areas. ● Demand for Specialized Services: ➖ Increasing incidence of lifestyle diseases driving demand for specialized healthcare. ➖ Growth in medical tourism as India becomes a preferred destination for cost-effective treatments. These factors are collectively propelling the growth of the hospital industry in India, positioning it for a promising future. ◉ Key players in the Indian hospital sector 1. Apollo Hospitals leads the sector with a market capitalization of approximately ₹98,646 Cr, establishing itself as the largest private hospital network in India. 2. Max Healthcare closely follows, boasting a market capitalization of around ₹97,820 Cr. 3. Fortis Healthcare is another key participant in the market, with a market capitalization of ₹48,249 Cr. 4. Global Health also ranks among the premier healthcare institutions, holding a market capitalization of ₹28,786 Cr. 5. Narayana Hrudayalaya is recognized for its cost-effective cardiac care services and maintains a notable market share with a market capitalization of ₹26,086 Cr. In this report, we will conduct an in-depth analysis and comparison between two of India's leading healthcare providers, Apollo Hospitals and Narayana Hrudayalaya. This comprehensive evaluation will assess their technical and fundamental aspects, ◉ Company Overviews ● Apollo Hospital NSE:APOLLOHOSP Apollo Hospitals was founded in 1983 by Dr. Prathap C Reddy, a visionary in the evolution of modern healthcare in India. As the first corporate hospital in the country, Apollo Hospitals is celebrated for leading the charge in the private healthcare transformation. Today, Apollo Hospitals stands as Asia's leading integrated healthcare services provider, boasting a strong footprint throughout the healthcare landscape. This includes a diverse range of services such as hospitals, pharmacies, primary care and diagnostic clinics, as well as various retail health models. ● Narayana Hrudalaya NSE:NH Narayana Hrudayalaya Limited is involved in providing medical and healthcare services both in India and abroad. It functions through two main divisions: Medical and Healthcare Related Services, and Others. The organization is responsible for acquiring, owning, and managing a variety of healthcare facilities, including hospitals, clinics, health centres, diagnostic centres, and nursing homes, among other related operations. Its range of services encompasses cardiology, cardiac surgery, nephrology, urology, neurology, neurosurgery, endocrinology, orthopaedics, internal medicine, obstetrics, gynaecology, pediatrics, neonatology, gastroenterology, and oncology. Additionally, the company is active in the health insurance sector. Established in 2000, its headquarters is located in Bengaluru, India. ◉ Technical Analysis ● Apollo Hospitals ➖ The stock faced a significant obstacle near the 5,800 level, resulted in a steep drop. ➖ It later found support around 3,500 and rebounded. ➖ Following an extended period of consolidation, the price developed a Rounding Bottom pattern. ➖ A breakout ensued, leading to a price increase, but it encountered resistance close to 6,800, which triggered a pullback to the breakout point. ➖ Following a successful retest, the price surged past the previous high, reaching a new peak at 7,545. ➖ However, due to prevailing negative market sentiments, the price has since retraced and is currently trading just above its immediate support zone. ● Narayana Hrudalaya ➖ The stock price is overall in an uptrend. ➖ After reaching an all-time high close to the 1,445 level, the price experienced a decline and has since entered a consolidation phase. ➖ A Symmetrical Triangle pattern has formed on the chart. ➖ We expect an upward breakout from this pattern, which could lead to a significant price rally. ◉ Relative Strength ➖ The chart reveals that both Apollo and Narayana Hrudayalaya have underperformed the Nifty Healthcare index. Although Apollo has given a descent 31% return, Narayana lagged significantly, yielding a modest 17% return. In contrast, the Nifty Healthcare index delivered an impressive 41% return. ◉ Service Wise Revenue Breakdown ● Apollo Hospitals The company operates through three primary segments, each contributing significantly to its revenue. ➖ Healthcare services account for approximately 52% of total revenue, forming the largest share. ➖ The retail pharmacy business generates nearly 41% of total sales, while the retail health and diagnostics segment contributes the remaining 7%. ● Narayana Hrudalaya ➖ The company operates exclusively in the healthcare services sector, deriving all its revenue from this single segment. ◉ Revenue & Profit Analysis ● Apollo Hospitals Year-over-Year ➖ The company's fiscal year 2024 performance was marked by strong growth, with revenue reaching ₹19,059 crore, a 15% increase from ₹16,612 crore in FY23. ➖ EBITDA surged to ₹2,394 crore, up from ₹2,065 crore in FY23, while the EBITDA margin improved to 13% from 12%. Quarter-over-Quarter ➖ In the latest quarter ending September 2024, the company achieved its highest-ever sales of ₹5,589 crore, significantly up from ₹5,086 crore in June 2024. This quarter-on-quarter growth has been consistent since March 2022. ➖ EBITDA for the quarter was an impressive ₹816 crore, a 21% increase from ₹675 crore in June 2024. ➖ Diluted EPS (LTM) rose substantially to ₹83.31 from ₹72.13 in June 2024. ● Narayana Hrudalaya Year-over-Year ➖ In FY24, our company achieved remarkable sales growth, surging 11% to ₹5,018 crore from ₹4,525 crore in FY23. ➖ EBITDA soared to ₹1,173 crore, up from ₹987 crore in the same period, with an impressive EBITDA margin of 23%. Quarter-over-Quarter ➖ Our quarterly sales reached an all-time high of ₹1,400 crore in September, representing a 4% increase from ₹1,341 crore in June. ➖ Although EBITDA growth was modest, it still improved to ₹308 crore in September from ₹304 crore in June 2024. ➖ However, Diluted EPS experienced a decline, dropping to ₹38.85 from ₹39.72. ◉ Valuation ● P/E Ratio ➖ Apollo Hospitals' current P/E ratio stands at 83.4, down from its 1-year median of 107.7. However, this remains significantly above the industry average of 56.9, indicating overvaluation. ➖ In contrast, Narayana Hrudalaya's P/E ratio of 33.5 is slightly above its 1-year median of 32.8 and substantially below the industry average, suggesting undervaluation. ● P/B Ratio ➖ Apollo's P/B ratio of 13.15 indicates considerable overvaluation compared to the industry average of 7.18. ➖ Narayana Hrudalaya's P/B ratio of 8.14 also suggests overvaluation, albeit to a lesser extent. ● PEG Ratio ➖ Narayana's PEG ratio of 0.49 positions it as an attractive investment opportunity, especially when compared to Apollo's considerably higher PEG of 2.43. ◉ Profitability Analysis ➖ Apollo Hospitals ROCE - 15% in FY24 ➖ Narayana Hrudalaya ROCE - 27% in FY24 The significant difference in ROCE between the two healthcare giants underscores Narayana Hrudalaya's superior profitability. Narayana's impressive ROCE of 27% demonstrates its ability to efficiently utilize its total capital, comprising both equity and debt, to generate substantially higher returns. ◉ Cash Flow Analysis ➖ Apollo Hospitals has demonstrated impressive growth in its operating cash flow, surging 39% to ₹1,920 crore in FY24 from ₹1,377 crore in FY23. This robust growth underscores the company's efficiency in converting profits into cash, highlighting its strong financial health and liquidity position. ➖ In contrast, Narayana Hrudalaya has shown sluggishness in turning profits into cash, with its operating cash flow declining 2% to ₹1,067 crore in FY24 from ₹1,085 crore in FY23. ◉ Debt Analysis ➖ Apollo Hospitals' debt stands at ₹7,371 crore, resulting in a debt-to-equity ratio of 0.98, which, although relatively high, is not alarming. However, the company's low interest coverage ratio of 4.69 raises concerns about its ability to service its debt. This vulnerability may complicate repayment of borrowed loans, potentially straining Apollo's financial stability. ➖ In contrast, Narayana Hrudalaya's debt of ₹1,703 crore and debt-to-equity ratio of 0.53 indicate robust financial health. Furthermore, its impressive interest coverage ratio of 8.34 suggests the company is well-positioned to manage its debt obligations, ensuring greater financial flexibility and stability. ◉ Shareholding Pattern ● Apollo Hospitals ➖ In the September quarter, Foreign Institutional Investors (FIIs) increased their stake in Apollo Hospitals to 45.37%, up from the previous quarter. ➖ Conversely, Domestic Institutional Investors (DIIs) reduced their holdings to 19.94%, a significant decrease from 24.77% in the last quarter. ● Narayana Hrudalaya ➖ In contrast, Narayana Hrudalaya witnessed a decline in institutional investor holdings. FIIs reduced their stake to 9.69%, down from 10% in the previous quarter. ➖ Domestic Institutional Investors (DIIs) also decreased their holdings to 7.9%, down from 8.22% in the June quarter. ◉ Conclusion Following a comprehensive analysis of both technical and fundamental aspects, we conclude that Narayana Hrudalaya appears to be favorably positioned from a valuation perspective, presenting an attractive investment opportunity. However, this does not diminish Apollo Hospitals' potential. Although the stock currently appears overvalued, investors can consider accumulating shares during dips, making it a viable option for those seeking strategic entry points. The healthcare sector's promising growth trajectory, fueled by rising healthcare demands and infrastructure expansion, positions both companies for potentially excellent returns in the near future.
NSE:APOLLOHOSPLong
by GoodluckCapital
2
Cosmic Collision: DLF & Oberoi Realty Clash in Real-Estate Space◉ Abstract The Indian real estate market is growing fast and is expected to reach $1 Trillion by 2030. Two big companies in this field are DLF and Oberoi Realty. DLF makes most of its money from commercial properties mainly through rental income, while Oberoi Realty focuses on homes. Both companies are doing well, but Oberoi Realty is growing faster and making more profit. DLF's stock price might go up soon after being stable for a long time. Oberoi Realty's stock has been going up steadily. Both companies don't have too much debt and are attracting investors. DLF seems expensive when you look at its price compared to earnings, while Oberoi Realty looks like a better deal. Oberoi Realty is also spending more on growing its business. In the end, both companies are in a good position to benefit from India's growing economy and increasing demand for real estate. ◉ Introduction The Indian real estate sector has witnessed significant growth in recent years, driven by increasing demand, policy reforms, and infrastructure development. Two prominent players, DLF Limited and Oberoi Realty Limited, have been at the forefront of this growth, shaping the country's urban landscape. Both companies have established themselves as leaders in the industry, with a strong presence in residential, commercial, and retail segments. ◉ Indian Real Estate Sector: Future Growth Prospects India's real estate market is expected to register significant growth in the coming years, driven by a number of factors. Here's a quick summary of the key trends: ● Market size and GDP contribution: The market size is expected to reach US$ 1 trillion by 2030, up from US$ 200 billion in 2021, and contribute 15.5% to GDP by 2047. ● Residential market growth: The residential market is witnessing strong growth, with the value of home sales reaching an all-time high of Rs. 3.47 lakh crore (US$ 42 billion) in FY23. Demand is surging in top 8 cities across mid-income, premium, and luxury segments. ● Retail and office space: The retail and office space segments are also growing rapidly. Gross leasing in top 7 cities crossed 60 million sq ft for the first time in 2023, with technology companies leading leasing activity. ● Data centers: Data center demand is on the rise, with an expected increase of 15-18 million sq ft by 2025. ● Housing shortage: There is a significant housing shortage in urban areas, with the current shortage estimated at 10 million units. An additional 25 million units of affordable housing are required by 2030. Overall, the Indian real estate sector presents a promising picture for growth and development. The sector is benefiting from a number of factors, including a growing economy, rising urbanization, and increasing disposable incomes. This is leading to strong demand for both residential and commercial properties. ◉ Company Overviews ● DLF NSE:DLF DLF Limited, along with its subsidiaries, focuses on colonization and real estate development across India. Their activities encompass land acquisition, project planning, construction, and marketing. The company specializes in developing and selling residential projects, while also managing commercial office spaces and retail properties, including malls and hospitality ventures. Notably, it owns The Lodhi Hotel and Hilton Garden Inn in New Delhi, as well as the DLF Golf & Country Club in Gurugram. Additionally, DLF is involved in leasing, maintenance, power generation, and recreational services. Established in 1946, DLF Limited is headquartered in Gurugram and operates as a subsidiary of Rajdhani Investments and Agencies Private Limited. ● Oberoi Realty NSE:OBEROIRLTY Oberoi Realty Limited, along with its subsidiaries, focuses on real estate development and hospitality in India. It operates in two main segments: Real Estate and Hospitality. The company develops and sells various projects, including residential, commercial, hospitality, retail, and social infrastructure. It also leases office and retail spaces. Additionally, it manages hotel operations, which include room sales, food and beverage services, and related offerings, as well as constructing residential apartments and providing property management services. Established in 1998, the company is based in Mumbai, India. ◉ Market Capitalization ● DLF - ₹ 2,26,256 Cr. ($26.8 B) ● Oberoi Realty - ₹ 68,970 Cr. ($8.2 B) ◉ Relative Strength The chart vividly demonstrates that neither company has managed to surpass the performance of the real estate sector over the past year. The realty sector has achieved an impressive return of 94%, while DLF and Oberoi Realty have delivered returns of 73% and 67%, respectively. ◉ Technical Aspects ● DLF ➖ Since its listing in July 2007, DLF reached an impressive peak of ₹ 1046 in January 2008. ➖ However, the stock faced a significant decline following the Lehman Brothers crisis later that year. ➖ After enduring a lengthy period of consolidation lasting eight years, the price stabilized around ₹ 66 in February 2016 and began its upward trajectory. ➖ Now, after nearly 17 years of consolidation, the stock is trading just below a critical resistance level, with a breakout anticipated in the near future. ● OBEROIRLTY ➖ Since its launch in December 2010, Oberoi Realty has shown a consistent upward trajectory ➖ During this ascent, the stock formed a Bullish Pennant pattern, and after breaking out, it surged to an all-time high of ₹ 1970 in September 2024. ➖ Currently, it is trading just below this peak. Analysts expect the stock to continue its upward momentum and reach new heights in the coming days. ◉ Revenue Breakdown ● DLF DLF mainly generates its revenue from real estate development, concentrating on both commercial and residential areas. Significantly, the commercial real estate sector contributes a considerable 74% of the company's total revenue, largely through rental income. ● OBEROIRLTY The company predominantly earns around 97% of its revenue from the real estate development sector. Furthermore, it also participates in the hospitality industry, which adds the remaining 3% to its overall revenue. ◉ Revenue & Profit Analysis ● DLF ➖ Over the past three years, DLF has recorded a modest compounded annual growth rate of 6% in sales. ➖ Despite this, the company has seen remarkable profit growth, which surged by 33% during the same timeframe. ➖ Currently, DLF enjoys a robust operating profit margin of 33%, an increase from 30% in FY23. ➖ In fiscal year 2024, earnings per share have jumped to 11.02, up from 8.22 the previous year, reflecting a consistent upward trend in EPS over the last four years. ● OBEROIREALTY ➖ In the last three years, Oberoi Realty has achieved an impressive compounded annual growth rate of 30% in sales. ➖ Profit growth has closely mirrored this success, with a CAGR of 34% during the same period. ➖ The company currently boasts an outstanding operating profit margin of 55%, a figure that continues to rise. ➖ While the EPS growth from FY23 to FY24 is modest, with EPS standing at 52.99 compared to 52.38 the previous year, the overall trend in EPS has been positive over the last four years. ◉ Valuation ● P/E Ratio ➖ DLF's current price-to-earnings (P/E) ratio stands at 79.6, slightly exceeding its 1-year median P/E of 76.7. However, when juxtaposed with the industry average of 34.4, it becomes evident that DLF is significantly overvalued at this time. ➖ In contrast, Oberoi Realty presents a P/E ratio of 31.50, which is just above its 1-year median P/E of 29.6. Yet, when compared to the industry P/E of 34.4, it appears to be undervalued. ● P/B Ratio ➖ DLF's price-to-book (P/B) ratio is 5.74, indicating a substantial overvaluation relative to the industry average of 3.54. ➖ Similarly, Oberoi Realty also seems overvalued with a P/B ratio of 4.98. ● PEG Ratio ➖ Oberoi Realty's PEG ratio of 1.83 positions it as an attractive investment opportunity, especially when compared to DLF's considerably higher PEG of 4.79. ◉ Profitability Analysis ➖ DLF ROCE - 6% in FY24 ➖ OBEROIRLTY ROCE - 15% in FY24 ➖ These numbers clearly demonstrate that Oberoi Realty is more profitable than DLF, as it efficiently leverages its total capital—comprising both equity and debt—to yield higher returns. ◉ Capex Analysis ● DLF ➖ The cash flow statement for DLF reveals a negative capital expenditure, indicating that the company is selling or disposing of its existing capital assets. ➖ This suggests a strategic decision to reduce its portfolio of office spaces and similar fixed assets, as they are no longer deemed necessary. ● OBEROIRLTY ➖ In contrast, Oberoi Realty has ramped up its capital expenditure from 601 crore to 677 crore compared to the previous year. ➖ This increase is a positive sign for the company, reflecting its ambition for expansion and growth in the market. ◉ Cash Flow Analysis ➖ DLF has demonstrated impressive growth in its operating cash flow, rising to 2,539 crore from 2,375 crore in FY23. ➖ Oberoi Realty has also performed exceptionally well, transforming its cash from operations to an impressive 2,810 crore, marking a significant recovery from a considerable negative of 2,383 crore in FY23. ◉ Debt Analysis ➖ DLF demonstrates robust financial health with a manageable debt level of 4,894 crores and an impressive debt to equity ratio of just 0.12, signaling that debt is not a significant issue for the company. ➖ On the other hand, Oberoi has a debt of 2,495 crores, resulting in a debt to equity ratio of 0.18, which indicates that the company is also not worried about its debt situation. ◉ Shareholding Pattern ● DLF ➖ Currently, Foreign Institutional Investors (FIIs) possess a 16.17% stake, reflecting a decline from the previous quarter. ➖ On the other hand, Domestic Institutional Investors (DIIs) have increased their holdings to 4.81% as of the June quarter, a slight rise from 4.77% in the last quarter. ● OBEROIRLTY ➖ Foreign Institutional Investors (FIIs) have made a notable increase in their investment in this stock, now holding 18.05%, up from 16.96% in the last quarter. ➖ Conversely, Domestic Institutional Investors (DIIs) have reduced their stake to 12.30%, down from 12.83% in the March quarter. ◉ Conclusion After a comprehensive assessment of the technical and financial metrics, we have concluded that Oberoi Realty has surpassed DLF in terms of valuation, profitability, revenue growth, and future expansion prospects. However, this does not imply that DLF cannot enhance its performance in the future. In fact, DLF is on the verge of a significant multi-year breakthrough, and if this happens, it could create an excellent opportunity for investors to take advantage of any price declines. In the end, both companies exhibit strong growth potential as they are leaders in the real estate sector. As the economy continues to grow, both Oberoi Realty and DLF are well-positioned to capitalize on this expansion.
NSE:DLFLong
by GoodluckCapital
3
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
GRINDWELL next moveGRINDWELL started sell trend and also making trend line liquidity forbreak upside if break above 2440 we can expect uptrend up to 2810 if breaks bellow 2320 we can expect 1980 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:GRINDWELLLong
by TRADING_MASTER_DAVIS
AUBANK - LONG TERM INVESTMENT CANDIDATE ?AU Small Finance Bank Limited is engaged in providing a range of banking and financial services including retail banking, wholesale banking, treasury operations and other services. CMP - 565 AUBANK is currently trading in a support zone & looking good for long term investing perspective. I am allocating my investment allocation at CMP. Targets I'm expecting are 785 & 850 which is 40-48% upside from current level. My SL would be 500. Disclaimer - Do not consider this as a buy/sell recommendation. I'm sharing my analysis & my investment position. You can track it for educational purposes. Thanks!
NSE:AUBANKLong
by akshit_official
Welspun Corp could excel in your Investment PortfolioInvestment Advice by Gooodluck Capital (SEBI Registered) Buy Welspun Corp NSE:WELCORP ● Buy Range (1) - CMP (current market price) ● Buy Range (2) - 660 - 665 ● Buy Range (3) - 620 - 630 ● Target - 960 - 970 ● Stoploss - below 500 ● Potential Return - 50 - 52% --------------------------------------- Approx investment period 18 - 24 months Company Overview Welspun Corp Limited manufactures and sells steel pipes, coatings, plates, and coils in the US, Europe, Saudi Arabia, and India. The company offers helically, longitudinally, and electric resistance welded pipes, pig iron and ductile iron pipes, billets, thermo mechanically treated rebars, stainless steel pipes, tubes, and bars. Its products are used in various industries, including oil, gas, water transmission, infrastructure, and defense. The company was incorporated in 1995 and is based in Mumbai, India. Sector - Iron & Steel Technical Analysis (1) In January 2008, the stock faced significant resistance around the 500 level, leading to a substantial price correction. (2) Over time, it established a support base near the 45 level, from which it began to rebound, climbing back towards the 300 level. (3) However, the stock struggled to break past the 300 threshold and eventually retreated to its former support. (4) Following this, it entered an extended phase of consolidation until it finally broke through the 300 level in July 2023. (5) This pivotal moment propelled the stock into strong upward momentum, culminating in a multi-year breakout at the 500 mark after nearly 16 years. (6) Subsequently, the stock not only maintained this breakout level but has also begun to steadily rise. Entry, Target & Stop-loss ● Entry with Capital allocation strategy (1) consider adding 40% of your desired quantity at the current market price. (2) The second buying opportunity will be in the 660-665 range, where you can also add another 40% of your quantity. (3) If the price dips to the 620-630 range, that will present the best buying opportunity. Make sure to reserve 20% of your quantity to take advantage of this level. ● Target Chart analysis indicates a promising upside potential of above 50% for this stock from the current level, with a target around the 960 to 970. There is also a strong likelihood that the stock could exceed this target. ● Stoploss It is crucial to implement a strict stop-loss below the 500 level, as we anticipate that the stock may encounter challenges if it drops to this point. Fundamental Analysis ● Stock Valuation ● (1) Intrinsic Value ➖ The current price-to-earnings ratio for the stock is 14.5. ➖ The median price-to-earnings ratio for the stock over the past year stands at 15.4, while the earnings per share for the trailing twelve months is 45.55. ➖ This leads us to calculate the intrinsic value of the stock as follows: 15.4 * 45.55 is equals to 701.47. ➖ With the current market price hovering around 695, which is below the intrinsic value of 701, it clearly indicates that the stock is considerably undervalued right now. (2) P/B Ratio The present PB ratio for this stock stands at 3.06, indicating a slightly high valuation but not reaching overvalued territory. ● Debt Analysis ● (1) The company's current debt is Rs. 1,949 crore, which is quite minimal compared to its market capitalization of Rs. 17,249 crore. (2) With a debt-to-equity ratio of just 0.35, it’s evident that the debt level is relatively low for this type of capital-intensive business, providing the company with the flexibility to secure additional funding as needed. (3) A glance at the balance sheet reveals a significant reduction in debt, dropping from Rs. 3,381 crore last year to the current Rs. 1,949 crore. ● Revenue Break-up ● (1) Product wise break-up The company generates its revenue through three primary product categories: ➖ HSAW Pipe, which accounts for approximately 76% of the total revenue, ➖ LSAW Pipe, contributing close to 15% of the total revenue, ➖ ERW Pipe, responsible for about 8% of the total revenue. (2) Location wise break-up The company derives approximately 54% of its revenue from India. Additionally, Welspun Corp. operates facilities in the USA and Saudi Arabia, contributing around 8.6% and 34.2% to its overall revenue, respectively. ● Profit & Loss Analysis ● (1) Over the past three years, this stock has achieved an outstanding compounded annual growth rate of 34% in sales. (2) The cumulative profit increase over the past three years has been an impressive 21%, indicating a strong upward trend. (3) The profit margin has seen a significant boost, rising to 9% from 5% YoY. For the fiscal year 2024, the growth in earnings per share is striking, skyrocketing to 42.41 from 7.90 in fiscal year 2023. ● Cash Flow Analysis ● Operating cash flow has seen a remarkable surge, soaring to 1,306 crore from a negative 185 crore in FY23. ● Shareholding Pattern ● (1) As of the June 2024 quarter, the promoters own a notable 50.03% stake in the company. (2) Goldman Sachs possesses a notable 10.51% share in the company, reflecting a slight decline from 10.70% in March 2024. (3) Domestic Institutional Investors (DIIs) have reduced their stakes since the previous quarter, yet they still hold over 9%, which remains quite significant. ● Conclusion ● The steel industry in India is set for expansion, bolstered by new government initiatives. Lower import duties on essential raw materials, combined with heightened public investment in infrastructure and housing, are anticipated to greatly enhance the sector's performance. Therefore, we are excited to see how Welspun Corp will thrive in the near future.
NSE:WELCORPLong
by GoodluckCapital
1
PSB Breakout Long Buy predictionPunjab & Sind Bank is engaged in the Business of Deposits, Loans & Advances, and Remittances & Collections. If we look at the chart: The market has broken multiple bullish pattern confirmations. It has a broken flag & pole, and descending triangle while having a very strong volume at the breakout. If we look at the RSI, its crossing 60 to the upside can be a good sign of long-term bullish for the stock. Investors of short term traders can proceed with the stock as follows: you can execute the trade with R:R of 1:4. Plan of Action: Buy: LTP (64-65) Stop loss: 60 Target1: 76 Final target 82
NSE:PSBLong
by finnova_
6
SONACOMS Bullish breakout predictionSona BLW Precision Forgings, an India-based automotive technology company, designs, manufactures, and supplies engineered automotive systems and components, including differential assemblies, gears, and EV Traction motors. If we look at the chart: The market has broken to the upside with very good volume. The market has broken the trendline to the upside. Also, the market is receiving support at 200 EMA. After the support, it has consolidated and then given a bullish hammer. We can make an entry with Risk:Reward: 1:2.6. Plan of Action: Buy: 651-655 Stop loss: 614 Final Target: 747
NSE:SONACOMSLong
by finnova_
Central Bank Breakout analysis to buyCentral Bank of India is a commercial bank. The Bank's segments include Treasury Operations, Corporate/Wholesale Banking, Retail Banking and other Banking business. The Treasury Operations segment includes dealing in government and other securities, money market operations and Forex operations. If we look at the chart: The market has broken multiple bullish pattern confirmations. It has a broken Sideways Range, Head and shoulder, while having a very strong volume at the breakout. If we look at the RSI, its crossing 60 to the upside can be a good sign of long-term bullish for the stock. Investors of short term traders can proceed with the stock as follows: you can execute the trade with R:R of 1:2. Plan of Action: Buy: above 69.40 Stop loss: 66 Target1: 75.75
NSE:CENTRALBKLong
by finnova_