The Sensex will see a collision between 31222 to 30088 and the Nifty 9222 to 8888

(Gujarat News Correspondent) Mumbai, Ta. May 23, 2020, Saturday

Despite the recent announcement of an economic stimulus package of Rs 20 lakh crore by the central government to rescue the country from the Great Depression caused by the Corona epidemic, the Reserve Bank of India has also taken steps to alleviate the liquidity crunch in the country and provide temporary relief to people. The move is inadequate and the market, like this heart-wrenching peacock, has lashed out at banking-finance stocks last week.

Even the Reserve Bank of India (RBI) itself has acknowledged that it is extremely difficult to get the economy out of this predicament and has downgraded India's economic growth-GDP growth forecast for the current financial year. Even the international rating agency Moody's has predicted that India's economic growth will now be minus zero, giving a clear signal that the coming months, not the coming months, will be extremely challenging for the economy and corporate India.

Despite the slowdown in the lockdown, the first two quarters of the current financial year are likely to see corporate India weaken and rising global geopolitical tensions on the global front will continue to shake Indian markets, given signs that it will take a long time to get the economy back on track. So constant caution will be needed to follow the uptrend in the next final week of the May trend.

Stock markets will be closed on Monday for Eid

In the new week, the stock markets will be closed on Monday, May 9, 2020 on the occasion of Ramadan Eid. So in the coming four days of the end of May's Futures and Options (F&O) trend, the continued offloading of foreign funds will stop or increase and index-based fluctuations are likely to erupt amid a look at the Hong Kong case, including US-China trade tensions. Along with rising crude oil prices next week, rupee-US dollar fluctuations, China's industrial production growth for the month of April 2020, the data to be released in May 2020 and Japan's industrial production for the month of April 2030. Will remain. So next week, the Sensex is likely to see a collision between 215 and 2009 and the Nifty between 6 and 7.

Dark Horse: Bajaj Consumer Care Ltd.

BSE (3), NSE (BAJAJCON) Listed, Rs. 1 Paid-up, Sugar, Consumer Goods, Power Generation and Infrastructure Development Shishir Bajaj Group's Bajaj Consumer Care Ltd. .) Was established by Kamalnayan Bajaj in the year 18 as Bajaj Sevashram for production and sale of hair oils and other beauty products. The company is currently in the hair oil category with brands like Bajaj Almond Drops Hair Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Kailash Parbat Hair Oil, Bajaj Coco Jasmine Hair Oil. The company's flagship brand Bajaj Almond Drops Hair Oil ranks second in the Indian market with a premium, its penetration penetration has increased from 12.5 per cent to 20.1 per cent in FY2017-20 and is one of the highest price per unit in the industry. The company sells its products through more than 3,000 stockists in more than 3 million retail outlets.

Bajaj Consumer Care owns three of the three manufacturing factories in India, one in Himachal Pradesh, one in Uttarakhand and one in Guwahati. The third party has two units in Himachal Pradesh, one in Baroda and two in Uttarakhand. The company’s manufacturing units are GMP certified. The company has more than 4 employees in India. The company had earlier acquired the Nomarks brand and entered the Rs 2,000 crore market in the skin care category. The company has a portfolio of brands like Bajaj Nomarks Cream, Bajaj Nomarks Face Wash, Bajaj Nomarks Scrub, Bajaj Nomarks Wet Face Pack, Sunscreen, Nomarks Shop etc. in this skin care sector. The company has recently launched a new product Bajaj Nomark Hand Sanitizer. The company continues to grow its international business presence and now sells its products in more than 50 countries in SAARC countries, the Gulf and the Middle East, Asian and African countries. Company U.A.E. And has its registered subsidiary offices in Bangladesh.

In India, 5% of households use hair oils. The top 10 hair oil brands account for 4.5 per cent of the total branded hair oil market. In this large and fast-growing Rs 12.5 crore category, CAGR growth has been more than 11.1 per cent in the last two years.

Share holding parton:

Out of the promoters holding 3.04 per cent, mutual funds 31.2 per cent, ICICI Prudential Equity Savings Fund 3.7 per cent, HDFC Trustee 1.4 per cent and Reliance Capital Trustee 3.08 per cent. Lloyd George Investment Company Public has 1.4 per cent, Matthew India Fund has 2.4 per cent, Battery Investments Mauritius has 2.4 per cent, Goldman Sachs India has 1.8 per cent, Goldman Sachs India has 1.8 per cent and foreign portfolio investors have 1.9 per cent. Opportunity Fund has 1.50 per cent and Saif India Holdings has 1.4 per cent. ICICI Lombard General Insurance Company has 1.50 per cent. Corporate bodies have 1.3 per cent and individual shareholders up to Rs 3 lakh have 2.08 per cent.

Dividends:

20% in the year 2014, 1150% in the year 2016, 1150% in the year 2013, 1150% in the year 2016, 1500% in the year 2016, 1500% in the year 2016

Dividend pay-out ratio:

4.5 per cent in March 2016, 7.5 per cent in March 2016, 2.15 per cent in March 2016, 7.5 per cent in March 2016 and 4.5 per cent in March 2017

Book value:

Rs.5.5 for March 2018, Rs.2.5 for March 2016, Rs.0.02 for March 2017, Rs.2.5 for March 2016, Rs.2.5 for March 2016, Rs.4.51 for expected March 2020

Financial Outcome:

(1) Full year April 2016 to March 2018:

Net income rose to Rs. 206.5 crore from Rs. 31.41 crore, net profit rose to Rs. 2.15 crore from Rs. 216.5 crore, earnings per share increased from Rs. 17.5 to Rs. Did.

(3) Third Quarter October 2014 to December 2018:

Net income fell 2.7 per cent to Rs 211.5 crore from Rs 4.5 crore, net profit fell 19.5 per cent to Rs 30.05 crore from Rs 20.05 crore and quarterly earnings per share was Rs. Achieved 4.5.

(2) First nine months April 2013 to December 2018:

Net income rose one per cent to Rs 2.15 crore from Rs 4.8 crore, net profit rose 0.41 per cent to Rs 19.01 crore from Rs 12.51 crore, and nine monthly earnings per share stood at Rs 11.5 crore. Have achieved.

(2) Expected full year April 2018 to March 2020:

Out of the expected net income of Rs 4.5 crore, the net profit is expected to be Rs 4.5 crore and the earnings per share is expected to be Rs 12.5.

(2) Valuation: B:

Even if the company is limited to an average P / E of 30 in the personal care industry and gives only a P / E of 10, the valuation is single M / s. The stock is currently available on the NSE, BSE at a price of Rs 121.50 against the expected EPS of Rs 12.5 with a P / EA of only Rs 3.5.

Thus (1) Bajaj Group has a 3% promoter holding, (2) a leader in the hair oil sector, (3) a 1,200 per cent dividend payer in 2016, a high 7.8 per cent dividend pay-out ratio, (3) a mutual fund and a Foreign portfolio investors have 5.04 per cent shareholding (2) per share in NSE, BSE against the expected earnings per share of Rs. 15.5 and expected book value of Rs. P / EA of .6 is available.

Manoj Shah: Research Analyst (SEBI REG. NO. INH000000107)

The author is a SEBI Registered Research Analyst: Disclosure cum (readers should take special note) Warning: (1) The author has no investment in the shares of the above companies. (2) Our resources for researchers may be of direct or indirect interest to brokers, promoter views, personal research analysts, portfolio management or their team. (3) Maintaining a 30% stop loss from the Reachers price, in particular, is advice and warning. (2) Valuation H, BB, BBB, Top Gainers These are all possibilities, so don't invest temptingly. (2) Generally, out of every 10 scrips, 4 scrips are true and 4-5 scrips are false. This type of research is excellent. (3) Feedback E-mail: All the above points also apply to the answers given in arjuneyems@gmail.com. (2) The reader class, the investor class to take their own personal decisions at personal risk. The writer, editor and anyone else of Gujarat Samachar will not be responsible for your loss. So invest by recognizing the risk of the stock market.