Get started

IPO

TATVA ready for some good movesTatva Chintan Pharma Chem Limited is a manufacturer of a diverse portfolio of structure Directing Agents, Phase Transfer Catalysts, electrolyte salts for batteries, and Pharmaceutical and Agrochemical Intermediates, and other Speciality chemicals. WHY IT MIGHT GIVE A GOOD MOVE NOW: Tatva's IPO's QIB was oversubscribed by 185.23 times. Meaning, institutions that planned to buy 50,000 shares got only 269 shares in the allotment. After the IPO Listing, the price dropped by 20.62% obviously due to listing gains enjoyed by retailers. For 11 weeks the share price formed a base and gave good time for big hands to accumulate. On the 12th week the price broke out of the IPO Listing price with huge volumes (the day before & the day after also) Out of 5.29 lac shares traded that day, 3.23 lac were traded in the last 30 minutes. This confirms my hypothesis of the Entry of big hands during the breakout. The price then tested 2 times the IPO listing high and took good support on it. Tatva's Q2 results also dropped on 22nd October (before 3 big volume days) and the Q2 numbers beat both QoQ & YoY numbers which might be the trigger. Key Points of the Company Leading Chemical Manufacturer Tatva Chintan operates in the space of niche specialty chemicals and is a globally recognized specialty chemical player with several market-leading products in its portfolio. The co. is the largest and only commercial manufacturer of structure-directing agents for zeolites in India (second globally) and caters to a wide range of industries across the globe. Product portfolio: The company has manufactured over 154 products which can be divided into the following four broad categories Structure Directing Agents (40% of the revenue) The Company’s SDAs are quarternary salts which are chemicals used in the Zeolite application. Zeolites have varied applications it is promoted with transition metals such as copper and iron to be active for selective catalytic reduction. Phase Transfer Catalysts (27% of the revenue) PTC’s are widely used in green chemistry applications and are used for a variety of industrial processes. Phase transfer catalysts are a type of catalyst that allows a reactant to be migrated from one phase to another. Electrolyte salts for supercapacitor batteries (1% of the revenue) The Company’s electrolyte salts are used in the manufacture of supercapacitor batteries, which are used in automobile batteries and other batteries. The Company is the largest producer of electrolyte salts for supercapacitor batteries in India. Pharmaceutical, agrochemicals, and other specialty chemicals (30% of the revenue) The products manufactured by the company under this category are used in the manufacture of various pharmaceutical and agrochemical products as intermediates, disinfectants, and catalysts, and solvents. In addition, the company also manufacture specialty chemicals under this category that are used in dyes and pigments, personal care ingredients, flavor, and fragrance sectors The Company has 47 products under their SDA product portfolio, 48 products under the PTC product portfolio, 6 products under the electrolyte salts for supercapacitor batteries portfolio, and 53 products under their PASC portfolio. Manufacturing facilities The Company operates through two manufacturing facilities situated at Ankleshwar and Dahej in Gujarat, both of which are strategically located very close to the Hazira port. These manufacturing facilities have an annual installed reactor capacity of 280 KL and 17 Assembly Lines. Exports-driven The company derives a majority of its revenue through exports (71% of the revenue) with Germany, the U.S., and China together accounting for 54.20%. Its top 10 customers constitute 60% of revenue. Clientele List The customers of the Company include Merck, Bayer AG, Asian Paints Ltd., Ipox Chemicals KFT, Laurus Labs Ltd, Tosoh Asia Pte. Ltd., SRF Limited, Navin Fluorine International Limited, Oriental Aromatics Ltd., Atul Limited and many others. R&D Infrastructure The company has a dedicated R&D facility, recognized by the DISR at Vadodara, Gujarat. The company has developed 53 products in the last three years which contributed 6.5 Crs revenue for the company. Successful listing The company got listed on the secondary exchanges on July 29 2021 with a 114% premium from its issue price. The 500 Crs issue got subscribed 180 times and became the most over subscriber IPO of 2021. The issue constituted of 275 Crs Offer for sale by the promoters and a fresh issue of 225 Crs. Growth Strategies: Expanding the Manufacturing Capabilities: The Company has consistently grown its manufacturing and production capabilities. The Company’s aggregate manufacturing capacity has increased at a CAGR of 20.59% from an aggregate reactor capacity of 82 KL and zero Assembly Lines in FY2010 to 280 KL Reactor Capacity and 17 Assembly Lines as of FY21. The company will expand its Dahej Manufacturing facility and upgrade its R&D Infra with a CAPEx to the tune of 170 Crs. Expand the existing product portfolio The Company plans to continue to increase offerings in their current business segments as well as diversify into new products by tapping into segments which in the view of the company’s management have attractive growth prospects.
NSE:TATVALong
by AmanSaraf
5
Tatva Chintan Pharma- China Plus one Theme?Tatva Chintan Pharma- Recent IPO - CMP 2250- Mcap 4989 Cr There is no Margin of Safety Currently in Valuations if i look it as a Long Term bet. However- Currently China Factor is Keeping Speciality Chemical Companies Afloat and Bouyant. As long as sentiments are good, Valuations can go Crazy. Speciality Chemicals can be a good Theme to Trade. Incorporated in 1996, Tatva Chintan Pharma Chem Limited is a chemical manufacturing company that manufactures structure directing agents (SDAs), phase transfer catalyst (PTCs), pharmaceutical and agrochemical intermediates, and other specialty chemicals. It is among the largest manufacturer of SDAs for zeolites in India. The company serves customers across industries i.e. automotive, petroleum, agrochemicals, dyes and pigments, paints and coatings, pharmaceutical, personal care, and others. Its products are not only sold in India but also export to 25+ countries all over the world such as the USA, Germany, South Africa, China, and the UK. In FY 2020, total export contributed to 76% of total revenue from operations. Merck, Bayer AG, Ipox Chemicals, Laurus labs, Navin Fluorine International Limited, Atul Limited, Otsuka Chemicals, SRF Limited, Hawks Chemical Company, Firmenich Aromatics Prod Pvt Ltd, and Divi's laboratories are a few of customers of the company. Currently, it has two manufacturing facilities at Ankleshwar and Dahej in Gujarat. Competitive strengths Leading manufacturer of structure directing agents and phase transfer catalyst. Diversified product portfolio. Global market presence with customer base across industries. Strategically located manufacturing facility in Gujarat with close proximity to Hazira Port. Experienced promoters and managers team. Strong financial performance track record. Company Promoters: Ajaykumar Mansukhlal Patel, Chintan Nitinkumar Shah, and Snehkar Rasiklal Somani are the company promoters.
NSE:TATVALong
by StrategicAlpha
LIVE MARKET VIDEO - WHY I BOUGHT HDFC AMC AFTER IT FELL 6%!!In this video, I share my basis for buying the shares of HDFC AMC at 2882 today morning after it fell from 6%. If you recall, yesterday, I had shared a video why should one invest in AMC of Fund Houses rather than their MF schemes and today is a classoc example of why one should invest in its equity. I hope you like this video which is for Information & Educational purposes only and not an advice. Happy X ! Umesh 29-9-21
NSE:HDFCAMCLong
by AVENUESOFINVESTMENT
1
WHY SHOULD YOU INVEST IN THE UPCOMING IPO OF ADITYA BSL AMC IPO?WHY SHOULD YOU INVEST IN THE UPCOMING IPO OF ADITYA BIRLA SUN LIFE AMC IPO ? HDFC AMC IPO Details IPO Opening Date Jul 25, 2018 IPO Closing Date Jul 27, 2018 Issue Type Book Built Issue IPO Face Value ₹5 per equity share IPO Price ₹1095 to ₹1100 per equity share Market Lot 13 Shares Min Order Quantity 13 Shares HDFC AMC lists at 58% premium over issue price SECTIONS HDFC AMC lists at 58% premium over issue price 52 Week High 3365 52 Week Low 2270 Listed at 1738 So an initial investment of 13*1100 shares would have meant investing INR 14,300. At its CMP on 27-9-21 EOD, it would have been worth INR41,171 Or 2.61 times your investment!! Do you need any more explanations? Why invest in HDFC MF schemes when you can invest in transparent and tradeable shares of the same company that give better ROI! Note -- I am not a SEBI regd. Analyst or advisor. All information and experiences shared here are for awareness and educational purposes only. 27-9-21
NSE:HDFCAMCLong
by AVENUESOFINVESTMENT
BANK NIFTY rescues NIFTY for a changeNIFTY 50 EOD ANALYSIS -08-09-21 IN SUMMARY O / H / L / C 17375.75 / 17383.4 / 17254.20 / 17353.5 H-L = 149 points VIX 14.41 / -3.29% FII DII: -802 Crores Likely open: BANK NIFTY holds the key. Based on the numbers looks a flat to a positive open. CHART BASED CONCLUSIONS NIFTY played negative today and did not even bother to go past the opening high made and ended the day just below the P Close. In the process, it has not only done a lower high but also made a lower low by drifting towards 17250 and dangerously close it. Soon as Europe opened, the sell-off started and lasted for an hour or so, and then, there was the usual jerks-driven relief rally only to end flat. On the daily charts, it has formed a hammer pattern indicating good bounce from the lower areas. NIFTY WEIGHT LIFTERS & DRAGGERS The Weight Lifters KOTAK BANK 03 HDFC BANK 03 ICICI BANK 02 TITAN 02 HUL 01 TOTAL 11 The Draggers NESTLE 04 INFOSYS 04 TCS 04 BAJAJ FINANCE 03 RELIANCE 03 TOTAL 18 Lifter - Draggers = -07 The above is what mattered in the end. It looks like the rest of the scrips had no role to play or it was too insignificant by EOD. POSITIVES NIFTY ended flat and recovered more than 90 points after the sell-off. BANK NIFTY changed the corner and was the savior for NIFTY. Even though the private banks have not contributed significantly, their not being negative helped the indices to maintain their levels. RELIANCE and HDFC recovered well from their respective lows which came in handy in ensuring that NIFTY closes flat. NEGATIVES NIFTY could not go anywhere near 17400. NIFTY breached the recent swing lows and drifted towards 17250. INFOSYS and TCS have been showing continued weakness. MARUTI has been falling yet again after a good recovery a couple of sessions ago. FIIs DIIs remain net sellers. TRADING RANGE FOR 08-09-21 17000-17200 is the support base.17400-450-500 may be the resistance area for NIFTY. BANK NIFTY support stays at 36200-400 and resistance at 37000-37200. INSIGHT / OBSERVATIONS The price action in INFOSYS appeared to be managed if one looks at the candles for the last 2 hours. There were spikes and sell-off as if 1700 CE writers had a point or two to prove in ending the day below 1700. MARUTI fell more than 1.5% but it seems to have made no impact on NIFTY which is indeed surprising as, at one stage, the fall was close to 100 points. The star of the day was KOTAK BANK as it almost single-handedly changed the tide for NIFTY and therefore BANK NIFTY. The strong up move prompted other banks to also chip in. It now needs to be seen if it can hold on to the momentum possibly created by it being included in the LIC IPO proceedings. Interesting expiry tomorrow - will the God that rings in Auspicious Beginnings help NIFTY close the week at a new ATH? Or will the IT biggies with RELIANCE like to keep dragging NIFTY? Wait and Watch! What do you feel about this? Thank you, and Happy Money Making! Umesh 08-09-21 P.S. If you choose to comment on the above, please do so with your analytical view rather than merely passing a comment. Your presentation of the view held by you would help other readers as well. NOTE -- This write-up is not a prediction mechanism for the movement of Indices in the Indian markets as the markets are unpredictable in nature. I may refer to many data points in the article but I do not base my view on any of these standalone. In fact, I prefer to react to the price moves than predict the price moves. I also do not review Open Interest. Whatever data points I am using, are all stated in the article. The article title, as well as its contents, can at best be stated as --- This Is How I Read Nifty. I hope I have been able to set the expectations right.
NSE:NIFTY
by AVENUESOFINVESTMENT
ABCAPITAL – mid-term pick► Aditya Birla Capital had seen a weekly breakout in mid-February ► After breakout, stock is consolidating, forming a triangular pattern ► Entry can be taken on break of triangular pattern or pullback to the triangle ► Based on news of SEBI clearing draft red herring prospectus for Aditya Birla Sun Life AMC, there might be a gap up opening on Monday breaking out the triangle pattern Usually prices move before news comes to retail participants, however looks like this is not the case with ABCAPITAL ► Aggressive position not suggested, ideal size would be 1% of portfolio size ► Stop-loss is essential for every trade ► Our stop-loss is 110 on daily closing basis Disclaimer - holding positions since February breakout Disclaimer: All investments and trading in the stock market involve risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments is a personal decision that should only be made after thorough research, including a personal risk and financial assessment and the engagement of professional assistance to the extent you believe necessary. The trading strategies or related information mentioned in this article is for informational / educational purposes only.
NSE:ABCAPITALLong
by Market-Thalaivaa
7
TRADING Vs INVESTING - PART 2 - ZOMATO IPO SPECIALFor the purposes of writing this series, I have assumed that the reader is not having a large capital base as, given the current scenario, an average person would find it hard to release funds that can be used for trading / Investing. Tax definition of Trading & Investing In a very simple manner, the key difference between Trading and Investing can be explained in the following manner --- Trading gains would be considered as business income for a trader or as a short-term capital gain for an investor attracting the applicable income tax rate. Investing gains would be considered as long-term capital gains attracting a lower rate of income tax. So if I invest in 100 Shares of Reliance at 2100 and sell it within 10 days at 2300, I would end up making a short-term capital gain of 100*200 = 20,000 if trading is not my business income. And I would end up making a taxable income of 20,000 if trading was part of my business income. Now, if I sell the shares bought above after 367 days at 1950, I would end up incurring a business loss of 100*150 = 15,000 if trading was part of my business income. However, I would end up incurring 15,000 as a long-term capital loss if I was not a trader and trading was not part of my business income or I was a salaried person. Why look at IPOs? Historically, IPOs have attracted lots of retailers as on many occasions, they have offered bumper listing gains and the retailers would generally seek quick and riskless gains from the investments made.Logically, the words “ quick and riskless” do not go hand in hand and certainly not with an “investment”. The reason being that investments tend to be for a longer period of time than other means of savings or money-making. In my view, for a retail person, with limited means to risk their precious capital, IPOs generally offer a good way to start the Investment journey. SEBI has made IPO investments an affordable process for the retail category as the lot size or the minimum amount that one can invest is around 15,000. One can always apply for multiple lots but if I cannot afford more than 15,000, IPO is the best way to go forward. The major downside of an IPO is that the information related to the company and its financials is available only as part of the prospectus which has to be filed. And retailers would not be having the time as well as the required knowledge to understand, interpret and evaluate the same. Also, would it make time sense to spend a few days or at least a few hours for an investment that may or may not click per expectations? I do not feel so. With IPOs, there is a 50-50% chance of it being a success on the expected lines. My experience has not been very encouraging as I have rarely been one of the allottees of the IPOs and when I did get allotment for ICICI PRU LIFE, this is what happened -- Listing Day Trading Information . IPO Price Open Low High Last Trade Volume BSE ₹334.00 ₹329.00 ₹295.50 ₹333.90 ₹297.65 12,720,399 NSE ₹334.00 ₹330.00 ₹295.15 ₹333.90 ₹297.55 89,058,658 The IPO base price was 334 and listed at 330 and closed at 297 - a fall of 11 % on a listing day. The day happened to be a big news day when around mid-morning, the news of the surgical strike was made public and the markets had tanked. The outcome was that the morning excitement of witnessing a listing gain faded with the gloom of a sharply discounted closing price. I ended up holding it for quite some time and made the typical mistake of exiting just above my cost. From the chart, it is very clear what followed thereafter was a steady rise and I would have been better off had I been an investor than a trader. Then What Should I do? Over the last few years, I have become somewhat wiser in dealing with lottery allotments as and when I get. The last was with Nazara Tech. I applied only because of RJ backing and hoped that it would get listed at a good premium. I was lucky this time and got an allotment . When the day had come, I had already decided that if the listing is at a good premium, I will take my capital out and let the shares representing the profits made remain in my holdings for as long as I can. So when it got listed at a super-premium and then made a high of 2024, I decided to exit around 1950 but by the time I could place the order and got filled, I got the exit price as 1920. A gain of = 65% just for parking my funds for about 2 weeks! That is certainly not bad. My capital was made free on the day of the listing and which I use as and when I feel to use it for the next IPO - it is now going to be Zomato. So in this case, my 65% gain would be treated as my business income as I am a full-time trader and if I am able to hold on to my profit based holdings in Nazara for another 260+ days, then I would be eligible to claim any gains out of if as a long term capital gain. As of 09-07-12, the lowest price was 1432 - a good 272 away from my cost price, and assuming I exit at 1432 in the future, I would have earned another 23% gain over the 65% gain which I am holding in the form of Nazara shares. This is how I propose to manage other IPOs . So my next try would be for Zomato. A lot is being said about it - good/bad. I am going to ignore both the views and apply and see if I get an allotment and if I get allotted, I will have to think about what to do when it gets listed and at what price. Why worry about something that is nowhere in sight? I hope the above helps you get an idea about how you can make a beginning in the world of “Investing” in the simplest possible manner. I would love to read your views and experience about IPOs. Thank you for your time and Happy Investing! Umesh P.S. Disclaimer - The views expressed here are purely for educational and informational purposes only and not a recommendation or advice in any manner. I am not a SEBI regd., so please consult your financial advisor or be your own decision-maker as you may deem fit.
Z
by AVENUESOFINVESTMENT
STOVEKRAFTSwing TrAdE options: After Box Break-Out now forming Descending Triangle Pattern, Depends on the break-Out stock moves further. Current Price- 595 P/E- 23.8 (less among competitors) Short time target: 650, 690 Med Time target: 730(Pole Extension) Pros: Company has reduced debt. Company has delivered good profit growth of 30.97% CAGR over last 5 years Debtor days have improved from 47.73 to 36.00 days. Note: Its revenue contribution was Kitchen Appliances (88%) and Home Appliances (12%) in FY20. The improved product mix resulted in profit expansion. Happy Trading Abd
NSE:STOVEKRAFTShort
by TN_ERNMAT