Financial Weekly

SMART 1st November 2020 to 7 th

November 2020 36
INVESTMENT

Investment Ideas telegram.me/rupeegains7

NIFTY :- For next week NIFTY has strong support around 11535 levels. Break will take it
to 11425---11290 levels. On the upper side NIFTY will face strong hurdle at 11750 levels, cross
over with volume and close above will create short covering at take NIFTY up to 11835---11950
levels…

BANK NIFTY :- For next week BANK NIFTY has strong support around 23600
levels. Break will take it to 23425---23150---22970 levels. On the upper side BANK NIFTY will face
strong hurdle at 24280---24340 levels, cross over with volume and close above will create short
covering at take BANK NIFTY up to 24800---25000 levels…
INVESTMENT IDEAS…

SALZER ELECTRONICS LTD

(517059 & NSE) (103.45) (Face Value Rs.10)
Salzer is a Leading player offering Total and Customized Electrical Solutions in Switchgears,
Wires & Cables and Energy Management business. It is the largest manufacturer of CAM Oper-
ated Rotary switches & Wire Ducts in India. The Company caters to a wide range of products with
four in-house manufacturing facilities, located in Coimbatore. The Company has a wide distribu-
tion network locally and globally, exporting to many countries. In India, Salzer markets its products
through its own distributors and more than 350 local distributors of L&T. Company will post Q2
numbers on 3rd November which will be good on quarterly basis. Everyone, whose financial advi-
sor is allowing to trade in this stock for short term can watch with stop loss of 98.

GUJARAT THEMIS BIOSYN LTD

(506879) (244.5) (Face Value Rs.5)
Incorporated in 1981, Vapi based Gujarat Themis Biosyn Limited manufactures and sells bulk
drugs on job work basis in India. Its products include Rifamycin-S, an intermediate for the treat-
ment of tuberculosis; and Lovastatin.
Cont....

Some of my recent recommendations

Recomm. Date Stocks Recomm. High Price Appreciation
Rate After (%)
18th May 20 Laurus Labs 87.45 344.9 294%
20th July 20 Surya Roshni 116 236.2 104%
3rd August 20 KANPUR PLASTI 70.65 126 78%
14th September 20 Kopran 69.85 130.95 87%
28th September 20 TEXMO PIPES 14 18.2 30%
26th October 20 INDO THAI SEC 19.65 23.95 22%
Surya Roshni 207 236 14%
Financial Weekly

SMART 1st November 2020 to 7 th

November 2020 37
INVESTMENT
GTBL has an equity base of Rs.7.26 crore supported by reserves of around Rs.34.93 crore. The
promoters hold 74.99% (Themis Medicare holds 23.19% & South Korean company Yuhan Corpo-
ration holds 26.50) in its equity, which leaves 25.01% stake with the investing public.
For Q1FY21, GTBL posted 295% higher PAT of Rs.5.57 crore on 34% higher sales of Rs.15.66
crore and an EPS of Rs.3.84. At CMP, GTBL trades at P/E ratio of just 12.8x. It paid 33% maiden
dividend for FY20. Everyone, whose financial advisor is allowing to trade in this stock for medium
to long term can watch with stop loss of 225.

MANGALAM DRUGS & ORGANICS LTD

(532637 & NSE) (150.15) (Face Value Rs.10)
On 10th August 2020, we had recommended this stock at Rs.82.4. After our recommendations it
has already given 107% appreciation in very short time.
Mangalam Drugs & Organics Limited commenced its manufacturing of Active Pharmaceutical
Ingredients (APIs) and Intermediates at VAPI - Gujarat in 1977. It has a multi-product manufactur-
ing facility on two locations, and an in-house Research & Development laboratory recognized by
the Department of Scientific & Industrial Research, Delhi Govt. of India (DSIR). Over the last three
decades, Mangalam has acquired worldwide reputation as a single stop destination for frontline
Anti-malaria (hydroxychloroquine). Company also has a diversified product range having syner-
gies in operations and economies of scale. Mangalam is amongst the top companies in Asia in all
the products it makes; and is also the largest manufacturer of some of its products in the world.
During Q1FY21, its PAT zoomed 1021.62% to Rs.8.30 crore as against PAT of Rs.0.74 crore on
59.35% higher sales of Rs.103.64 crore fetching an EPS of Rs.5.24.
Company has successfully developed the API Favipiravir which is being advised for the treat-
ment of COVID19. Everyone, whose financial advisor is allowing to trade in this stock for medium
to long term can watch with stop loss of 124.

KABRA EXTRUSIONTECHNIK LTD

(524109 & NSE) (74.80) (Face Value Rs.5)
Kabra Extrustiontechnik Ltd. is the flagship company of Kolsite group and one of the largest
players in the plastic extrusion machinery known for its innovative offerings. KEL specializes in
delivering high performance extrusion solutions for manufacturing pipes and films. It has two manu-
facturing locations in Daman. Company has set up a new of the art manufacturing facility MIDC at
Chakan, Pune for Module and battery packs and has applied for various incentives announced by
the State and Central Government.
Company has an equity base of Rs.15.95 crore supported by reserves of around Rs.236.88
crore.
For H1FY21, KEL posted 520% higher PAT of Rs.5.70 crore on sales of Rs.105.59 crore and an
EPS of Rs.1.79. Everyone, whose financial advisor is allowing to trade in this stock for medium to
long term can watch with stop loss of 62.

Cont....
Financial Weekly

SMART 1st November 2020 to 7 th

November 2020 38
INVESTMENT

KAKATIYA CEMENT SUGAR & INDUSTRIES LTD

(500234 & NSE) (162.15) (Face Value Rs.10)
Kakatiya Cement Sugar & Industries Limited was incorporated in the Year 1979 for the manu-
facture of Ordinary Portland Cement. The installed capacity of the Cement Division of the Com-
pany was increased over the period from the initial 66,000 tpa to 1,98,000 tpa to 2,97,000 tpa at
present, whereas that of the Sugar Division is increased from 2500 tcd to 3200 tcd at present. The
cement plant of the Company is located in Nalgonda District of Andhra Pradesh, whereas the
sugar and power plants are located in Khammam District.
Company has an equity base of Rs.7.77 crore supported by reserves of around Rs.215.85 crore
leading to a share book value of Rs.288. At the current price, the stock trades at a price of 0.57x to
book value. For Q2FY21, it posted 440.87% higher PAT of Rs.6.22 crore on sales of Rs.32.98
crore and an EPS of Rs.8.
Everyone, whose financial advisor is allowing to trade in this stock for medium to long term can
watch with stop loss of 140.

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. Investors 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.

TRIGGERS FOR NOVEMBER SERIES

• US Elections
• Bihar Elections
• Covid 2.0 in US & Europe
• Stimulus Package in US
• Festive Sentiment & Rural Demand
• Remaining Q2FY20 Results & Mgmnt Commentary.
• Now is the time to be cautious in Equity Markets atleast till 10
November
• Money saved is Money earned in the times of uncertainty
• Avoid Leverage-Avoid Overtrading-Always Keep Booking profits
at regular intervals
• Keep some cash in hand for buying on dips