Financial Weekly

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INVESTMENT
27th May, 2018 to 2nd June 2018 46
Investment Ideas telegram.me/rupeegains7

AS PER TOWER TALK, SEBI'S MANDATE TO REJIG SMALL CAP & MID CAP STOCKS BY
MUTUAL FUNDS IS COMING TO END ON 31-5-2018. HENCE SELECT GROWTH ORIENTED
SMALL CAPS & MIDCAPS MAY START PERFORMING JUNE ONWARDS. IT MAY BE PRU-
DENT TO START ACCUMULATING GROWTH ORIENTED QUALITY SMALL CAPS-MIDCAPS
SLOWLY BETWEEN MAY END-JULY 2018 FOR GOOD RETURN ON OR BEFORE DIWALI.
NIFTY :- For next week NIFTY has strong support around 10550 levels. Break will take it to
10490-10415 levels. On the upper side NIFTY will face strong hurdle at 10675 levels, cross over
with volume and close above will create short covering at take NIFTY up to 10750 levels…
BANK NIFTY :- For next week BANK NIFTY has strong support around 26005 levels. Break
will take it to 25775 levels. On the upper side BANK NIFTY will face strong hurdle at 26430 levels,
cross over with volume and close above will create short covering at take BANK NIFTY up to
26565-26700 levels…
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INVESTMENT IDEAS…
AXTEL INDUSTRIES LTD
(523850) (77) (Face Value Rs.10)
Axtel Industries Limited manufactures and supplies process engineering equipment and turn-
key systems for the food and pharmaceutical industries in India.
During Q4FY18, net profit soared 245% to Rs.2.45crore from Rs.0.71crore in Q3FY18 on sales
of Rs.30.05crore fetching an EPS of Rs.1.52. Everyone, whose financial advisor is allowing to
trade in this stock for medium to long term can watch with a stop loss of Rs.70.
GUJARAT SIDHEE CEMENT LTD
(518029 & NSE) (35.1) (Face Value Rs.10)
Company manufactures and exports portland cement and clinker. Gujarat Sidhee's plant is lo-
cated in Sidheegram in Gujarat State, India.
During Q4FY18, it has reported PAT of Rs.20.04crore against loss of Rs.12.93crore. For FY18,
it has reported PAT of Rs.31.29crore against loss of Rs.31.26crore. Stock is available at PE ratio of
just 6.7x.
Everyone, whose financial advisor is allowing to trade in this stock for medium to long term can
watch with a stop loss of Rs.28.
MANGALORE CHEMICAL & FERTILIZERS LTD
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(530011 & NSE) (61.55) (Face Value Rs.10)
Incorporated in 1966 by UB group and now part of Zuari group, Bengalure based Mangalore
Chemicals and Fertilizers Limited manufactures, purchases, and sells nitrogenous and phosphatic
fertilizers, and related products in India and internationally.
For Q4FY18, its net profit soared 333% to Rs.20.30crore. For FY18, its net profit zoomed 212%
to Rs.60.58crore.
Everyone, whose financial advisor is allowing to trade in this stock for medium to long term can
watch with a stop loss of Rs.55.
UMANG DAIRIES LTD
(500231 & NSE) (88.5) (Face Value Rs.5)
Incorporated in 1992, Delhi based Umang Dairies Limited provides various dairy products in
India. It is a part of J K Corporation & J K Corporation is having listed companies like J K PAPER,
J K TYRE, J K LAKSHMI CEMENT etc.
During Q4FY18, UDL posted 1983.87% higher PAT of Rs.6.46crore on sales of Rs.69.09crore
fetching an EPS of Rs.2.94.
Everyone, whose financial advisor is allowing to trade in this stock for medium to long term can
watch with a stop loss of Rs.55.
SURYAAMBA SPINNING MILLS LTD
(533101) (71.8) (Face Value Rs.10)
Incorporated in 1992, Nagpur based Suryaamba Spinning Mills Limited manufactures and sells
synthetic blended yarns in India. The company manufactures polyester, polyester/viscose, vis-
cose, and fancy yarns, as well as other blends. It offers synthetic ring spun yarn for weaving, knit-
ting, embroidery, and other industrial applications. An ISO 9001:2008 certified organization,
Suryaamba is a state of art manufacturing unit located strategically at Nayakund, near Ramtek,
District: Nagpur (Maharashtra). Its installed capacity is 62000 spindles. The company exports its
products to the United States, Mexico, Italy, Germany, Spain, Portugal, Switzerland, Belgium, Tur-
key, Egypt, Morocco, Nigeria, Poland, Canada, Peru, Columbia, Brazil, Argentina, Chile,
Bangladesh, and South Africa.
It has an equity base of just Rs.2.93crore that is supported by reserves of around Rs.21.08crore.
The Promoters hold 73.64% while the investing public holds 26.36% stake in the company. Pro-
moters have increased their stake by 0.75% in March Qtr which is positive sign.
Company has reported fantastic numbers for Q3FY18. During Q3FY18, SSML posted 144.44%
higher PAT of Rs.0.44crore on 66.05% higher sales of Rs.40.07crore fetching an EPS of Rs.1.49.
During 9MFY18, its net profit soared 31.64% to Rs.2.08crore from Rs.1.58crore in 9MFY17 on
higher sales of Rs.113.08crore fetching an EPS of Rs.7.10. 9MFY18 PAT was 16.20% higher than
PAT recorded for FY17.
Company will declare its Q4FY18 Nos & dividend on 29th May 2018. One can note here that it
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has not paid dividend since last 2 years and this time it will declare dividend means management
are bullish on company's future.
Everyone, whose financial advisor is allowing to trade in this stock for medium to long term can
watch with a stop loss of Rs.60.
ALUFLUORIDE LTD
(524634) (104) (Face Value Rs.10)
Alufluoride is the only Company in Andhra Pradesh producing high purity Aluminium Fluoride
(AlF3) with technology developed by Alusuisse, Switzerland. This technology facilitates conver-
sion of Fluorine effluents from Phosphatic Fertilizer Complex into Hydrofluosilicic Acid and then to
Aluminium Fluoride. The Company has an installed production capacity of 5000 tons of Aluminium
Fluoride per year and plans to expand further. The project ensues pollution abatement, import
substitution, conservation of natural resources like Fluorspar & Sulphur, cost effective production,
conversion of waste into wealth and earning valuable foreign exchange to the Nation. AlF3 is used
as flux in reducing the melting point of Alumina during the electrolytic process of producing Alu-
minium. Many Aluminium Smelters in India and abroad are using the Company's product with
repeat orders for increased quantities due to its quality and service.
During Q4FY18, net profit soared 106.66% to Rs.2.17crore from Rs.1.05crore in Q4FY17 on
76.04% higher sales of Rs.14.13crore fetching an EPS of Rs.3.10. During FY18, net profit zoomed
80.44% to Rs.6.46crore from Rs.3.58crore in FY17 on 41.83% higher sales of Rs.51.50crore fetch-
ing an EPS of Rs.9.22.
Currently, the stock is trading at just 11.3x.
Everyone, whose financial advisor is allowing to trade in this stock for medium to long term can
watch with a stop loss of Rs.90.
Disclosures: At the time of writing this article, author, his clients & dependent family members may have
positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family
members may make purchases or sale of the securities mentioned in website. Author may have positions in
above stocks so have vested interest obviously in their going up or down as the case may be.
Disclaimer: Investing in any equity is risky. Our recommendations are based on reliable & authenticated
sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Inves-
tors should take their own decisions. We assume no responsibility for any transactions undertaken by them.
The author won't be liable or responsible for any legal or financial losses made by anybody.