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In this article, we will study about Jagatjit Industries Limited and its business. We will also discuss about Jagatjit Industries Limited Share Price Target from 2025 to 2030. So let us begin.

Company Overview

Jagatjit Industries Limited (JIL) was founded in 1944. The company started its journey with Jagatjit Chemical and Pharmaceutical Works and Jagatjit Laboratories in 1946, followed by the launch of its distillery in 1948. Over the decades, JIL has established itself as a pioneer in the industry, producing several premium brands, including the famous Aristocrat and Teachers whiskies. In 2023, JIL received approval for its Ethanol plant, marking another significant milestone in its long history.

Business Overview

Jagatjit Industries Limited is a global leader in the premium drinks segment, operating the largest integrated distilleries in Asia for manufacturing potable alcohol. The company is a trailblazer in India, being the first to have in-house capabilities for producing molasses and non-molasses based potable alcohol through fully automated distillation plants. Beyond alcoholic beverages, JIL’s diverse product range includes malt, malt extract, nutritious planned food, milk powder, ghee, dairy products, and malted milk foods.

Recent Financial Performance

In the quarter ended June 2024, the company’s sales decreased by 11.75% compared to the same quarter in June 2023, dropping from ₹174.11 crore to ₹153.65 crore. Additionally, the company’s financial performance worsened significantly, with a net loss of ₹4.26 crore in June 2024, compared to a net profit of ₹2.74 crore in June 2023. This resulted in a negative change of 255.47% in net profit, indicating a sharp decline in profitability.

Key Financial Metrics

The company’s Market Cap stands at ₹971 crore, reflecting its overall valuation in the stock market. The Price to Earnings Ratio (P/E) is notably high at 357.07, significantly above the industry average of 39.6, indicating that the stock may be overvalued compared to its peers. The Debt to Equity ratio is 3.56, which suggests the company is heavily leveraged, relying more on debt than equity for financing. Lastly, the Return on Equity (ROE) is 11.1%, showing a moderate level of profitability in generating returns for shareholders relative to the equity invested.

Also Read – Promoters Increase Stake by Acquiring 6.16 Lakh Shares in NBFC

Stock Performance till now

The stock has given a return of 10% CAGR in the past 10 years.

Share Price Target

While it’s tough to predict exact prices, you can use a simple method to guess future prices.

For example, if a stock is currently at ₹100 and the company has grown by 18% per year, you might expect the stock to grow at a similar rate if the company continues to perform well. The company’s growth refers to an increase in its revenue and profits.

If the company keeps growing at 18% per year, the stock might increase to about ₹118 (₹100 + 18% of ₹100).

On the other hand, if the stock has been falling by 10% due to poor financial performance, the price might drop to around ₹90 (₹100 – 10% of ₹100).

Remember, these are just rough estimates. Markets are inherently uncertain, and predicting exact future prices is nearly impossible.

Focus on the fundamentals of the business and make decisions accordingly. Whether to stay invested or to exit depends entirely on the financial performance of the company. Stay informed through regular analysis.

Don’t know how to analyze a company? Join our YouTube channel to learn fundamental analysis for free – Feel The Candlesticks

Share Holding Pattern

Promoters hold a significant stake of 87.34% in the company, which shows their confidence in the company’s long-term profitability.

The Bottom Line

The company operates the largest integrated distilleries in Asia, producing premium brands like Aristocrat and Teachers whiskies. JIL is also known for its diverse product range, including dairy products and malted milk foods. Despite recent market challenges, the company remains committed to innovation and profitability, as evidenced by its approval for an Ethanol plant in 2023 and strong promoter confidence with a significant 87.34% ownership stake. JIL’s focus on growth positions it well for future success.

Disclaimer: This information is for educational purposes only and does not constitute financial advice. Always conduct your own research and consult with financial professionals before making investment decisions.

Visit the official site for more information

In the world of trading, two important concepts often used by traders are Institutional Buying Zones (IBZ) and Institutional Selling Zones (ISZ). These zones are closely linked to support and resistance levels on price charts. Understanding these concepts can help you create a more effective IBZ and ISZ trading strategy while avoiding potential pitfalls. So, let’s begin the lesson.

What is IBZ in Trading?

IBZ simply means Institutional Buying Zone.

IBZ is a price range where large institutional investors, such as mutual funds or hedge funds, are likely to buy a stock in significant quantities.

These investors have the power to influence the market due to the large volumes they trade. When institutions buy, they typically do so at price levels where they believe the stock is undervalued or has strong potential to rise.

The IBZ is often identified as a support zone on a price chart. A support zone is a level where the price tends to stop falling and starts to rise. This happens because there is strong demand for the stock at that level. When institutions buy at these levels, it reinforces the support, making it harder for the price to drop below that zone.

For example, if a stock consistently finds buyers around ₹100, this level could be considered a support zone. If large institutions are buying at this price, it becomes an Institutional Buying Zone. Traders who recognize this zone may also buy, expecting the price to rise.

What is IBZ in Trading?

ISZ simply means Institutional Selling Zone.

ISZ is the opposite of an IBZ. It is a price range where large institutional investors are likely to sell off their holdings.

When these institutions decide to sell, it can lead to a decrease in the stock’s price due to the large volumes being offloaded.

The ISZ is often identified as a resistance zone on a price chart. A resistance zone is a level where the price tends to stop rising and starts to fall. This occurs because there is strong selling interest at that level. When institutions sell at these levels, it reinforces the resistance, making it difficult for the price to move higher.

For instance, if a stock consistently faces selling pressure around ₹150, this level could be considered a resistance zone. If large institutions are selling at this price, it becomes an Institutional Selling Zone. Traders who recognize this zone may decide to sell or avoid buying, expecting the price to fall.

How do IBZ and ISZ Relate to Support and Resistance?

Support and resistance levels are key concepts in technical analysis.

• Support is a level where a stock’s price tends to find buying interest, preventing it from falling further.
• Resistance is a level where the price tends to find selling interest, preventing it from rising further.

When we talk about IBZ and ISZ, we are essentially talking about support and resistance levels where large institutional players are involved. The involvement of these large players makes these zones even more significant.

IBZ as Support: When a stock enters an IBZ, it means that institutions are likely to buy the stock, creating a strong support level. This support level is where the price is less likely to fall below because of the high demand from these big players. Traders often look for buying opportunities in these zones, expecting the price to bounce back.

ISZ as Resistance: When a stock enters an ISZ, it indicates that institutions are likely to sell their holdings, creating a strong resistance level. This resistance level is where the price is less likely to rise above because of the strong selling pressure. Traders often look for selling opportunities in these zones, expecting the price to drop.

Also Read – What is a Candlestick Chart?- 7 Important Things to Know

How to Use IBZ and ISZ in Your Trading Strategy?

Understanding where IBZ and ISZ are on a price chart can be very useful in developing a trading strategy. Here are a few tips on how to use these zones effectively:

1. Identify the Zones: Look for these zones in higher time frames. Higher time frame support and resistance are basically IBZ and ISZ. Use technical analysis tools to identify potential IBZ and ISZ on your price chart.
2. Follow the Trend: If the overall trend is up, consider buying in the IBZ. If the trend is down, consider selling in the ISZ.
3. Watch for Confirmation: Before entering a trade, wait for confirmation that the price is respecting the IBZ or ISZ. This could be a reversal pattern or a strong price movement in the expected direction.
4. Manage Your Risk: Always set stop-loss orders to protect yourself from unexpected market movements. For example, if you buy in an IBZ, set your stop loss just below the support level.
5. Be Aware of False Breakouts: Sometimes, the price may temporarily break through a support or resistance level, only to return back. These are known as false breakouts. It’s important to confirm the breakout before taking action.

Conclusion

Understanding Institutional Buying Zones (IBZ) and Institutional Selling Zones (ISZ) can give you an edge in trading. By recognizing these zones as areas of strong support and resistance, you can make more informed decisions about when to buy or sell.

Also Read – What is Price Action in trading?-12 Important Questions Answered

Hindprakash Industries Limited, through an official communication dated August 23, 2024, announced the record date for determining the eligibility of shareholders to receive the final dividend for the financial year ending March 31, 2024. The record date has been set for September 6, 2024, applicable to equity shares with a face value of ₹10 each.

The final dividend, if approved at the upcoming Annual General Meeting (AGM), will be disbursed to eligible shareholders within 30 days from the date of approval.

Company Overview

Hindprakash Industries Limited was started in 2008. It is a well-known company in India. It has a strong presence in the chemical manufacturing industry. Over time, the company has gained a good reputation by providing a variety of products and services to its customers.

Business Overview

Hindprakash Industries focuses primarily on the manufacturing and trading of dyes, intermediates, auxiliary chemicals, and other merchandise. These products are essential in various industries, including textiles and pharmaceuticals, where they play a crucial role in production processes. The company’s diverse product portfolio allows it to cater to a broad range of industrial needs, ensuring its significant role in the market.

What is the latest update?

On August 23, 2024, Hindprakash Industries made an important announcement regarding the final dividend for the financial year ending March 31, 2024. The company has set September 6, 2024, as the record date to determine which shareholders are eligible to receive the dividend. This means that if you own shares of the company as of this date, you may be entitled to receive a dividend. The final dividend will be paid out within 30 days after it is approved at the company’s upcoming Annual General Meeting (AGM).

Read the official notification here

Recent Financial Performance

Hindprakash Industries recently released its financial results for the quarter ending in June 2024.

As shown in the table above, the company’s sales dropped by 18.22%, reaching ₹22.48 crore in June 2024, down from ₹27.49 crore in June 2023. Similarly, the net profit saw a significant decline of 55.17%, falling to ₹0.26 crore from ₹0.58 crore during the same period last year.

Key Financial Metrics

With a market cap of ₹157 crore, has a higher valuation compared to its industry peers, as shown by its P/E ratio of 130 against the industry average of 41.2. The stock is also trading at a premium with a P/BV of 3.13 compared to the industry’s 2.09.

Also Read – What is Dividend? – Complete Guide in Simple Words

Stock Performance

Shareholding Pattern

Promoters own about 75% of the company, showing their strong confidence in it.

The Bottom Line

Hindprakash Industries Limited has announced an important date for shareholders, especially those looking forward to receiving the final dividend for the financial year 2023-2024. However, the company’s recent financial performance shows some challenges, with significant declines in both sales and net profit. Investors and stakeholders will be keeping a close watch on how the company navigates these challenges and whether it can bounce back in the coming quarters.

for more information, visit the official site

Disclaimer: This information is for educational purposes only and does not constitute financial advice. Always conduct your own research and consult with financial professionals before making investment decisions.

Ashoka Buildcon Limited, a Fortune India 500 company and one of the leading highway developers in India, has recently secured a significant project by emerging as the Lowest Bidder (L-1) for a major contract awarded by the Mumbai Metropolitan Region Development Authority (MMRDA). The project, valued at ₹478 crore plus applicable GST, involves the design and construction of an elevated road connecting key locations in the Mumbai region.

Company Overview

Ashoka Buildcon Limited is a Fortune India 500 company and one of the leading highway developers in India. Established in 1976, Ashoka Buildcon has grown through its unwavering commitment to quality, safety, consistency, and environmental consciousness.

The company is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Business Overview

Ashoka Buildcon is engaged in the construction and infrastructure industry.

The company is an integrated player in the Engineering, Procurement, and Construction (EPC), Build-Operate-Transfer (BOT), and Hybrid Annuity Model (HAM) segments.

The company is involved in various sectors, including highways and bridges, power (EPC), railway works, buildings (EPC), city gas distribution, and smart infrastructure. Additionally, Ashoka Buildcon is involved in the sale of Ready Mix Concrete (RMC). The company has executed or is executing 41 Public-Private Partnership (PPP) projects and has a presence in over 20 states in India.

What is the latest update?

Ashoka Buildcon Limited has emerged as the Lowest Bidder (L-1) for a significant project awarded by the Mumbai Metropolitan Region Development Authority (MMRDA). The project involves the design and construction of an elevated road connecting various key locations in the Mumbai region, including Kalyan-Murbad Road, Badlapur Road, and Pune Link Road. This project, valued at ₹478 crore (plus applicable GST), is an Engineering, Procurement, and Construction (EPC) contract, and is expected to be completed within 36 months, including the monsoon period. The project is awarded by a domestic entity.

Read the official notification here

Recent Financial Performance

• The sales increased by 27.39% from ₹1935 crore in June 2023 to ₹2465 crore in June 2024.
• The net profit saw a significant increase of 119.44%, rising from ₹72 crore in June 2023 to ₹158 crore in June 2024.

Also Read – What do you mean by Net Profit? – Explained

Key Financial Metrics

Stock Performance

Shareholding Pattern

The Bottom Line

In summary, Ashoka Buildcon Limited continues to solidify its position as a leading player in the infrastructure sector. The company’s recent success in securing a ₹478 crore project from the Mumbai Metropolitan Region Development Authority underscores its expertise and reputation in the industry. Furthermore, the impressive financial performance in the June 2024 quarter, with a 27.39% increase in sales and a remarkable 119.44% rise in net profit, reflects the company’s strong operational capabilities and strategic growth.

For more information, visit the official site

Disclaimer: This information is for educational purposes only and does not constitute financial advice. Always conduct your own research and consult with financial professionals before making investment decisions.

Interest rates play an important role in the economy of a country. When the Federal Reserve (Fed) changes interest rates, it impacts borrowing, spending, and investment. This, in turn, affects the stock market in the US and around the world. Let’s talk about how this works.

What is Federal Reserve?

The Federal Reserve, also known as the Fed, is the central bank of the USA, which controls the interest rates for borrowing money. It creates monetary policies to influence the availability and cost of money. The Fed controls three tools of monetary policy:

• open market operations
• the discount rate
• reserve requirements.

What is the impact of Interest Rates on Economic Activities?

Borrowing Costs

When the Fed raises interest rates, borrowing money becomes more expensive. This means:

• Higher Loan Costs: Loans for buying homes, cars, and funding businesses become costlier. There comes a decline in the number of people availing this loan. And also comes the decline in the sales of the company dealing such products and services.
• Reduced Borrowing: People and businesses borrow less because loans are more expensive.
• Lower Spending and Investment: With higher borrowing costs, spending and investment decrease, slowing down economic activity.

Savings

Higher interest rates also make saving money more appealing:

• Higher Returns: Banks offer better interest rates on savings accounts and bonds.
• Increased Savings: People save more money instead of spending it.

Demand-Side Effects

When borrowing is costly and saving is attractive, people spend less:

• Reduced Spending: Less money is spent on goods and services.
• Lower Demand: Lower demand for goods and services can help control inflation.

Inflation Control

Higher interest rates help control inflation:

• Lower Prices: With reduced spending and investment, demand for goods and services decreases. This can help keep prices from rising too fast.
• Expectation Management: If people believe the Fed will control inflation, they are less likely to demand higher wages and prices, which helps keep actual inflation low.

Also Read – Inflation and CPI Explained – What’s the Effect on the Stock Market?

Impact on the US Stock Market

Higher interest rates can significantly affect the stock market in the US:

Lower Borrowing Costs

• Increased Expenses: Companies face higher costs for loans, which can reduce their profits.
• Lower Profits: When company profits decrease, their stock prices might go down.

Consumer Spending

• Reduced Spending: Higher interest rates mean people are less likely to borrow and spend money.
• Lower Sales: Companies sell fewer products and services, which can lead to lower stock prices.

Investment Decisions

• Bond Attraction: Higher interest rates make bonds and savings accounts more attractive than stocks.
• Stock Selling: Investors might sell stocks to invest in bonds, causing stock prices to fall.

Business Investments

• Fewer Projects: Companies might cut back on new projects or expansions due to higher borrowing costs.
• Slower Growth: Slower growth can make investors sell shares, leading to lower stock prices.

Market Sentiment

• Uncertainty: Higher interest rates can create uncertainty about the economy’s future.
• Market Volatility: This uncertainty can lead to more ups and downs in the stock market as investors react to news about interest rates.

Sector Impact

• Tech and Growth Stocks: Companies that rely on borrowing to grow can see their stock prices drop more sharply.
• Financial Stocks: Banks and financial institutions might benefit from higher interest rates because they can charge more for loans, potentially raising their stock prices.

Global Impact of US Interest Rates

1. Global Borrowing Costs

• Higher Costs for Companies: When the US raises its interest rates, the cost of borrowing money in US dollars goes up for companies all over the world. Many companies, even those outside the US, take out loans in US dollars because the dollar is a stable and widely used currency. But when interest rates rise, these companies have to pay more money back on their loans. This can reduce their profits because they have to spend more on interest payments. As a result, their stock prices might go down because investors expect lower profits.

2. Investment Flows

• Attraction to US Investments: Higher US interest rates make investments in the US more appealing. For example, US government bonds become more attractive because they offer higher returns. This means that investors from all over the world might move their money into US investments to take advantage of these better returns.
• Outflows from Other Markets: When investors move their money to the US, they often pull it out of other countries’ stock markets. This can lead to lower stock prices in those countries because there’s less investment money flowing into them. For countries that rely on foreign investments to grow their economies, this can be a big problem.

3. Currency Exchange Rates

• Stronger US Dollar: When US interest rates go up, the US dollar often becomes stronger compared to other currencies. This happens because higher interest rates attract more foreign investment into the US, which increases the demand for the dollar. A stronger dollar means that American goods become more expensive for buyers in other countries. At the same time, goods from other countries become cheaper for American buyers.
• Impact on Other Countries: Countries that export a lot of goods to the US may struggle when the dollar strengthens. Their products become more expensive in the US, so they might sell less. This can hurt their economies because they earn less from their exports. If these countries rely heavily on exports to the US, their stock markets might also suffer as their companies’ profits decline.

4. Market Sentiment

• Uncertainty: Higher US interest rates can create uncertainty in global financial markets. Investors might worry about how these higher rates will impact economic growth, not just in the US but worldwide. When investors are uncertain, they tend to be more cautious, which can lead to slower economic growth.
• Volatility: This uncertainty can also cause more volatility in global stock markets. Volatility means that stock prices can swing up and down more dramatically than usual. For example, if there’s news that the US might raise interest rates again, stock markets around the world could react sharply, either rising or falling depending on how investors feel about the news.

5. Trade and Commodities

• Higher Trade Costs: When US interest rates rise, it can become more expensive to finance international trade. Businesses that need to borrow money to buy and sell goods across borders might face higher costs, which can slow down global trade. This can be especially challenging for countries that rely heavily on exports.
• Commodity Prices: Many commodities, like oil and gold, are priced in US dollars. When the dollar gets stronger, it usually leads to lower prices for these commodities. This can hurt countries that export these goods because they earn less money for each unit they sell. For instance, if a country relies on oil exports, a stronger dollar might mean they earn less for each barrel of oil they sell.

6. Emerging Markets

• Capital Flight: Emerging markets, or developing countries, can be hit hard by rising US interest rates. Investors might decide to pull their money out of these markets and invest in the US instead, where they can get better returns. This outflow of money, known as capital flight, can cause problems for these countries because they lose the investment they need for growth.
• Currency Depreciation: When money leaves emerging markets, the value of their currencies can drop. This depreciation makes it more expensive for these countries to pay back loans that are in US dollars. If their currencies weaken too much, it can lead to a financial crisis because they might struggle to pay back their debts.

Conclusion

Interest rates set by the Fed have a broad impact. They influence borrowing, spending, and saving in the US. These changes affect the US stock market, with impacts on profits, consumer spending, and investment. Furthermore, US interest rate changes ripple across global markets, affecting borrowing costs, investment flows, currency values, and market sentiment. Understanding these relationships helps in making informed investment decisions.

Visit the Federal Reserve’s Official Website

When investing in stocks, two key financial metrics to keep an eye on are Net Profit and EPS (Earnings Per Share). These two are closely related, and logically, you would expect them to move in the same direction. However, there are times when a company’s Net Profit increases, but its EPS decreases. This might seem confusing, but there are several reasons why this happens. In this article, we’ll explore these reasons in simple terms.

What is Net Profit?

Net Profit is the actual profit that a company makes after paying all its expenses, taxes, and other costs. It is often referred to as the “bottom line” because it’s the final figure on a company’s income statement. This is the amount of money that the company has earned after everything is paid for, and it’s an important indicator of the company’s financial health.

What is EPS?

EPS stands for Earnings Per Share. It is a way to measure how much profit a company makes for each share of its stock. To calculate EPS, you divide the company’s Net Profit by the total number of shares that are outstanding (owned by shareholders).

EPS is important because it gives investors an idea of how profitable a company is on a per-share basis.

The Relationship Between Net Profit and EPS

Since EPS is calculated using Net Profit, you would expect that if Net Profit increases, EPS should also increase. Similarly, if Net Profit decreases, EPS should decrease too. This is the general rule, but there are exceptions.

Why EPS Can Decrease Even When Net Profit Increases?

Dilution of Shares

Dilution of shares happens when the total number of a company’s shares increases. The number of shares increases, but it causes a reduction in the percentage value of ownership of each share. When this happens, even if the Net Profit goes up, the profit is spread across more shares, which can cause the EPS to go down. Here are some examples of how shares can be diluted:

ESOP (Employee Stock Option Plan)

• What It Is:
  An ESOP is a program that gives employees the option to buy company shares at a fixed price. It’s a way to reward and motivate employees.
• How It Causes Dilution:
  When employees use their stock options to buy shares, the total number of shares increases. Since the same profit is now divided among more shares, the EPS can decrease.

QIP (Qualified Institutional Placement)

• What It Is:
  A QIP is a way for companies to raise money by selling shares to large institutional investors, like mutual funds or insurance companies. They are also called qualified institutional buyers (QIBs).
• How It Causes Dilution:
  When a company issues new shares through a QIB, the number of total shares increases. This can dilute the EPS because the profit has to be shared among more shares.

Rights Issue

• What It Is:
  A rights issue is when a company offers new shares to its existing shareholders at a lower price than the market value. This allows shareholders to buy more shares at a discount.
• How It Causes Dilution:
  When shareholders buy these new shares, the total number of shares increases. This increase can dilute the EPS since the profit is now divided among more shares.

FPO (Follow-on Public Offer)

• What It Is:
  An FPO is when a company that is already listed on the stock exchange issues additional shares to the public. It’s similar to an IPO, but the company is already publicly traded.
• How It Causes Dilution:
  When a company offers more shares to the public, the total number of shares increases. Just like with a rights issue or QIB, this can dilute the EPS because there are more shares over which the profit is spread.

Conclusion

In summary, while Net Profit and EPS are closely related, they don’t always move in the same direction. An increase in the number of shares can cause EPS to decrease even when Net Profit is on the rise. Understanding these factors helps investors make better decisions by seeing the full picture of a company’s financial situation.

Also Read – What is Dividend? – Complete Guide in Simple Words

On August 16, 2024, an entity within the Promoter Group of Piramal Enterprises Limited (PEL) bought 616,615 equity shares on the National Stock Exchange (NSE). This represents 0.27% of the company’s total paid-up share capital. Because of this purchase, the Promoter Group’s stake in PEL increased from 46.03% to 46.30%.

Read the Official Notification Here

Company Overview

Piramal Enterprises Limited (PEL) is a diversified Non-Banking Financial Company (NBFC) that operates in retail lending, wholesale lending, and fund-based platforms. PEL has a strong technology platform powered by artificial intelligence (AI), which allows it to offer innovative financial solutions across various sectors. In retail lending, PEL focuses on serving under-served and unserved markets in India, with a presence in 26 states and a network of 501 branches catering to over 1.3 million customers.

In wholesale lending, PEL provides financing to real estate developers and corporate clients, and has formed strategic partnerships with global financial institutions like CPPIB, APG, and Ivanhoe Cambridge. Additionally, PEL holds a 50% stake in Pramerica Life Insurance, a joint venture with Prudential International Insurance Holdings.

Significance of the Transaction

It is notable that the Promoters/Promoter Group did not participate in PEL’s share buy-back in 2023, which suggests that they may have opted to increase their stake through open market purchases instead.

Increase in Promoter Holding

The Promoter Group’s stake in the company increased by 0.27%, from 46.03% to 46.30%, which signifies a marginal but positive reinforcement of the promoters’ confidence in the company.

Demonstrated Confidence

The promoters have shown ongoing confidence in PEL’s growth and future potential, reflecting their trust in the company’s business fundamentals and strategic direction.

No Participation in Buy-Back (2023)

It is notable that the Promoters/Promoter Group did not participate in PEL’s share buy-back in 2023, which suggests that they may have opted to increase their stake through open market purchases instead.

Stock Performance

Also Read – Inflation and CPI Explained – What’s the Effect on the Stock Market?

Important Financial Metrics

PEL (Piramal Enterprises Limited) has a market capitalization of ₹21,711 crore and a Price to Earnings (P/E) ratio of 172.94, calculated based on trailing twelve months (TTM) earnings. This elevated P/E ratio indicates that the stock is priced at a premium compared to its earnings over the past year, especially when compared to the industry average of 20.9.

The Price to Book Value ratio stands at 0.81, which is below the industry average of 1.87, suggesting the stock might be undervalued relative to its book value. The company’s Return on Equity (ROE) is 1.25% and its Return on Capital Employed (ROCE) is 3.91%, showing modest returns on equity and capital.

PEL has a debt to equity ratio of 2.02, indicating high leverage. Its Return on Assets (ROA) is 0.43%, and it offers a dividend yield of 1.05%, providing some returns to investors. The enterprise value of ₹70,876 crore reflects the total value of the company, including both debt and equity.

Shareholding Pattern

Promoters have increased their holding to 46.30% of the company’s shares, indicating significant insider ownership. Foreign Institutional Investors (FIIs) account for 17.19%, reflecting a moderate level of international investment. Domestic Institutional Investors (DIIs) hold 13.02%, demonstrating institutional interest from within the country.

The Bottom Line

The purchase of shares by the Promoter Group indicates a continued belief in the future growth of Piramal Enterprises Limited. The slight increase in shareholding reaffirms the promoters’ long-term commitment to the company and its strategic direction. The transaction could be viewed positively by the market as it showcases the promoters’ confidence in the company’s value creation potential.

Disclaimer: This information is for educational purposes only and does not constitute financial advice. Always conduct your own research and consult with financial professionals before making investment decisions.

Adani Wilmar Limited (AWL) has notified the exchanges about the successful completion of the acquisition of a 67% stake in Omkar Chemical Industries Private Limited (OCIPL). This marks a significant move in its business growth. AWL has positioned itself to strengthen its presence in the specialty chemicals sector. This acquisition is a key milestone for AWL as it diversifies its operations and taps into new market opportunities.

Read the Official Notification

Company Overview

Adani Wilmar Limited is a joint venture between Adani Enterprises and Wilmar International. It was founded in 1999. It is a major player in the Indian food and beverage industry. It is India’s largest processor of palm oil and has diversified into various segments, including edible oils, foods, and now specialty chemicals.

Facts to know about the specialty chemical sector

The specialty chemicals market in India is experiencing rapid growth, with the industry projected to expand at a CAGR of over 12% from 2020 to 2025. This growth is fueled by strong demand from end-user sectors like food, automobile, real estate, and cosmetics. The market, valued at USD 32 billion, represents 22% of India’s overall chemicals and petrochemicals market and accounts for over 50% of all chemical exports. Indian manufacturers have benefited from low-cost production, abundant manpower, and supportive government policies like the PCPIR and PLI schemes.

As global manufacturers face higher costs and stricter regulations elsewhere, India is becoming an attractive alternative for specialty chemicals production. The Indian market is poised for substantial growth as companies focus on research and development, capital investments, acquisitions, and expanding the domestic market. Investor confidence and strategic corporate spending will be crucial in driving sustainable growth in the industry.

AWL’s entry into this market aligns with these industry trends, positioning the company to capitalize on future growth opportunities.

Also Read – This Cable Making Company has Announced a Share Buyback worth ₹112 Crore

Stock Performance

Key Financial Metrics

Adani Wilmar Ltd has a market capitalization of ₹47,217 crore and a Price to Earnings (P/E) ratio of 73.63, which is significantly higher than the industry average P/E of 35.4. This indicates that the company may be valued more expensively compared to its peers.

The Price to Book Value (P/BV) ratio stands at 5.71, also higher than the industry average of 2.86, suggesting that the market perceives the company as having a strong asset base relative to its book value. Despite this, the Return on Equity (ROE) is relatively low at 3.65%, which might imply that the company is not generating high returns on its equity.

The company maintains a low Debt to Equity ratio of 0.29, indicating a conservative use of debt.

The Profit After Tax (PAT) for the quarter is ₹324 crore. The company has a negative PEG ratio of -17.2, indicating that its earnings growth may not justify its current valuation. The sales growth is negative at -5.61%, but profit growth is strong at 72.9%, indicating an improvement in profitability.

Share Holding Pattern

Disclaimer: This information is for educational purposes only and does not constitute financial advice. Always conduct your own research and consult with financial professionals before making investment decisions.

HEG Ltd is a prominent company of the LNJ Bhilwara group and is India’s leading graphite electrode manufacturer. Recently, it announced a stock split in the ratio of 1:5. Each equity share with a face value of Rs. 10/- will be split into 5 equity shares with a face value of Rs. 2/- each. The decision was approved on August 13, 2024, and is subject to the approval of the members through a Postal Ballot. The company will announce the Record Date for the stock split very soon.

Read the official notification here

About HEG Ltd

HEG Ltd is a key player in the graphite electrode manufacturing industry, with one of the largest integrated Graphite Electrode plants in the world. The company is known for processing sophisticated UHP (Ultra High Power) Electrodes and has a strong presence in both domestic and international markets.

HEG Ltd Shares Performance

HEG shares have experienced mixed performance over different timeframes. Over the past 6 months, the stock surged by 22%, but it has declined by 16% in the last 3 months. In the last 1 year, the stock soared by 15%, and over the last 2 years, it gained 56%. However, the stock has seen a decline of 14% in the last 3 years. Despite this, HEG shares have offered a return of 98% over the last 5 years.

The 52-week high price of HEG shares on the BSE is Rs. 2744.60 per share (as of May 22, 2024), while the 52-week low price is Rs. 1466.85 per share (as of October 26, 2023).

Weak Q1 Results Trigger Sharp Decline in HEG Shares

HEG Ltd reported its Q1 FY25 results, which revealed a significant decline in profitability. The company’s standalone net profit for the quarter ended June 30, 2024, dropped to Rs. 2.58 crore, down from Rs. 97.56 crore in the corresponding quarter of last year. Standalone revenue from operations also declined to Rs. 571 crore, compared to Rs. 671 crore in the same quarter of the previous year. The total standalone income for the quarter was Rs. 592 crore, down from Rs. 698 crore in the corresponding quarter of last year.

Following the announcement of these weak financial results, HEG shares witnessed a sharp decline of over 8% on the BSE, with the current market price standing at Rs. 1994.75 per share.

Also Read – This Cable Making Company has Announced a Share Buyback worth ₹112 Crore

HEG Ltd Share Holding Pattern

Here’s a table presenting the shareholding pattern for June 2024:

• Promoters: Their stake has remained relatively stable with a minor decrease to 55.12%, indicating a slight reduction in their shareholding.
• FIIs (Foreign Institutional Investors): Their share has decreased to 6.06%, down from previous levels, reflecting a reduction in their investment.
• DIIs (Domestic Institutional Investors): DIIs have increased their stake to 13.08%, showing a significant rise and growing confidence in the company.
• Public: The public’s shareholding has decreased to 25.08%, marking a decline from earlier periods.

Disclaimer: This information is for educational purposes only and does not constitute financial advice. Always conduct your own research and consult with financial professionals before making investment decisions.

Suprajit Engineering Limited is a prominent player in the automotive components industry. It has announced a significant buyback plan worth ₹112 crore for its equity shares on 14th August, 2024. The record date for this buyback is August 27, 2024.This article provides an in-depth analysis of the buyback and also includes details about the company, its financial performance, and the implications of the buyback for shareholders.

Company Overview

Suprajit Engineering Limited was established in 1985. It has grown into one of the leading manufacturers of automotive cables and halogen bulbs. The company supplies its products to a wide range of sectors, including the automotive, non-automotive, and aftermarket segments. Over the years, It has expanded its global footprint and It caters to customers in several countries. The company’s commitment to quality, innovation, and customer satisfaction has strengthened its position as a trusted supplier in the automotive industry.

Financial Performance

Suprajit Engineering Limited reported a strong financial performance for the quarter ended June 2024. The company’s net profit increased by 15.16%, reaching ₹38.14 crore, compared to ₹33.12 crore in the same quarter of the previous year. Additionally, revenue saw an 8.12% rise, amounting to ₹734.86 crore, up from ₹679.68 crore in the June 2023 quarter. This growth reflects the company’s ability to enhance profitability and maintain a steady increase in revenue.

Here’s a table summarizing Suprajit Engineering Limited’s financial results for the quarter ended June 2024:

The revenue growth has been driven by both domestic and international sales, showcasing the company’s competitive edge and market demand for its products.

Important Financial Metrics

Shareholding Pattern

Here’s a table summarizing the shareholding pattern of Suprajit Engineering Limited for June 2024:

Promoters hold a significant stake in the company, which is often seen as a positive indicator of their confidence in the company’s long-term growth potential.

Buyback Details

The buyback plan announced by Suprajit Engineering involves repurchasing up to 15,00,000 equity shares at a price of ₹750 per share. This buyback price is almost 38% higher than the closing price on Wednesday. This buyback represents approximately 1.08% of the company’s total outstanding shares and amounts to a total value of ₹112.5 crore. It will be conducted through a tender offer, which allows shareholders to tender their shares at the specified price within a designated time frame.

The record date for determining the eligibility of shareholders to participate in the buyback is August 27, 2024. Shareholders who hold shares as of this date will be eligible to tender their shares in the buyback.

Read the full details here – Official Notification

Implications of the Buyback

The decision to buy back shares is often a strategic move by companies to optimize their capital structure, return excess cash to shareholders, and signal confidence in the company’s future. In the case of Suprajit Engineering, the buyback serves several purposes:

1. Enhancement of Shareholder Value: By reducing the number of shares outstanding, the company aims to increase the earnings per share (EPS), which can potentially lead to an appreciation in the share price.
2. Efficient Capital Allocation: The buyback allows the company to utilize its surplus cash in a manner that benefits shareholders directly. This can be particularly appealing to investors seeking returns in the form of capital gains rather than dividends.
3. Positive Market Signal: A share buyback is often interpreted as a sign that the company’s management believes the shares are undervalued. It sends a positive signal to the market about the company’s financial health and growth prospects.
4. Improved Return on Equity (ROE): By reducing the equity base, the buyback can lead to an improvement in the company’s return on equity, making the company more attractive to investors.

Also Read – Bondada Engineering Announced the Stock Split Date

Conclusion

The buyback announced by Suprajit Engineering Limited is a clear indication of the company’s strong financial position and management’s confidence in its future growth. For shareholders, the buyback offers an opportunity to realize value either by tendering their shares at a premium or by holding onto a potentially more valuable stake in the company.

This buyback is expected to positively impact the company’s share price and overall market perception, making it a noteworthy event for both existing and prospective investors. As with any investment decision, it is essential for shareholders to consider their individual financial goals and consult with a financial advisor to determine the best course of action.

In conclusion, Suprajit Engineering’s buyback is not just a financial maneuver but a strategic initiative that aligns with the company’s long-term growth objectives and commitment to enhancing shareholder value.

Disclaimer: This information is for educational purposes only and does not constitute financial advice. Always conduct your own research and consult with financial professionals before making investment decisions.