Financial Weekly

SMART 6th Jan. 2019 to 12th Jan. 2019 34

INVESTMENT

Investment Ideas telegram.me/rupeegains7

NIFTY :- For next week NIFTY has strong support around 10625 levels. Break will take it to
10560-10535 levels. On the upper side NIFTY will face strong hurdle at 10815 levels, cross over
with volume and close above will create short covering at take NIFTY up to 10890-10940 levels…
BANK NIFTY :- For next week BANK NIFTY has strong support around 27025 levels.
Break will take it to 26920-26845 levels. On the upper side BANK NIFTY will face strong hurdle at
27430 levels, cross over with volume and close above will create short covering at take BANK
NIFTY up to 27560 levels…
INVESTMENT IDEAS…
BAJAJ CORP LTD (533229 & NSE) (382) (Face Value Re.1)
Bajaj Corp Limited offers hair care products under the brand names of Bajaj Almond Drops Hair
Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Jasmine Hair Oil, Bajaj Amla Hair Oil, Bajaj Kailash Parbat
Hair Oil, and Bajaj Coco Jasmine Hair Oil. Bajaj Almond Drops Hair Oil is enjoying highest market
share in its segment. The company also provides skin care products, such as creams, face wash,
scrubs, face packs, and soaps under the Bajaj Nomarks brand name.
It has an equity base of just Rs.14.75crore that is supported by huge reserves of around
Rs.477.71crore. The Promoters hold 66.86%, Mutual Funds hold 4.64%, FIIs hold 23.46% while
the investing public holds only 3.95% stake in the company. During Q3FY19, Mutual Funds have
increased their stake by 1.12%.
During H1FY19, GPL posted PAT of Rs.105.42crore on higher sales of Rs.420.70crore fetching
an EPS of Rs.7.15. It has paid 1200% dividend for FY18. Everyone, whose financial advisor is
allowing to trade in this stock for medium to long term can watch with a strict stop loss of Rs.355.
RACL GEARTECH LTD (520073) (61) (Face Value Rs.10)
Incorporated in 1983, Delhi based RACL Geartech Limited manufactures and sells automotive
components to OEMs in the automotive sector primarily in India. The company offers transmission
gears and shafts, reduction gears trains CVT gear boxes, engine timing gears, sub-assemblies,
sprockets and ratchets, precision machined parts, synchronizing cones and rings, and industrial
gears for motorcycles and scooters, three and four wheeler passenger and cargo vehicles, agricul-
tural machinery, tractors, ATVs, light and heavy commercial vehicles, etc. It also exports its prod-
ucts.
It has an equity base of just Rs.9.93crore that is supported by reserves of around Rs.49crore.
The Promoters hold 49.63% while the investing public holds 50.37% stake in the company. Pro-
moters have increased their stake by 1.16% in Sep Qtr which is positive sign.
During Q2FY19, RACL posted 157.67% higher PAT of Rs.2.65crore on 39.84% higher sales of
Rs.44.57crore fetching an EPS of Rs.2.67. During H1FY19, its net profit soared 153.81% to
Rs.4.26crore from Rs.1.68crore in H1FY18 on 45.66% higher sales of Rs.82.88crore fetching an
EPS of Rs.4.29. At CMP stock is trading at PE ratio of just 6.1x.
Everyone, whose financial advisor is allowing to trade in this stock for medium to long term can
watch with a stop loss of Rs.50.
ACKNIT INDUSTRIES LTD (530043) (132) (Face Value Rs.10)
Acknit Industries Limited manufactures and sells industrial safety gloves and garments in India.
It operates through Hand Gloves, Garments, and Power Generation segments. The company of-
Financial Weekly

SMART 6th Jan. 2019 to 12th Jan. 2019 35

INVESTMENT

fers cut and sewn dipped, seamless dipped, cut level 3/5 protection, cut level 5 protection, knitted,
Kevlar, Canadian, welder, driver, cut resistant, heat resistant, and Kevlar leather gloves. It also
provides leather garments, including jackets, bib trousers, aprons, and arm and leg protectors; and
industrial and readymade garments. In addition, the company generates power through windmills.
It also exports its industrial safety gloves and garments.
It has an equity base of just Rs.3.04crore that is supported by reserves of around Rs.40.38crore.
It has a share book value of Rs.135.93 & price to book value ratio is just 0.9x which is impressive.
During H1FY19, its net profit soared 107.37% to Rs.2.11crore from Rs.1.02crore in H1FY18 on
sales of Rs.77.88crore fetching an EPS of Rs.6.94. At CMP stock is trading at PE ratio of just 9.8x.
It is regular dividend paying company and it has paid 15% dividend for FY18.
Everyone, whose financial advisor is allowing to trade in this stock for medium to long term can
watch with a stop loss of Rs.115.

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.