The new week will see the Sensex 35888 and Nifty 10610

(Gujarat News Correspondent) Mumbai, Ta. Saturday, June 27, 2020

Although the world is still worried about the Corona epidemic, the world is also worried about reviving the global economy and economic activity is being accelerated by unlocking, but again the cases of Corona infections have become increasingly difficult to keep the economy afloat, according to Standard & Poor's. Indian stock markets have seen gains in the past week. With rising tensions on the border between India and China and growing public outcry against China in the face of growing industrial-economic activity across the country, the growing movement of Chinese troops across the country's various borders is now a cause for concern. The rising geopolitical tensions in the coming days will necessitate extreme caution as the US is worried about the war with India and Pakistan's support for China. Of course, in this worrying environment, the rising value buying in stocks by funds, companies with good fundamentals at very attractive prices by big players is also indicative. So small, mid-cap stocks will continue to be attractive in the index-based next week with the possibility of an even bigger uptick.

Next week, the services PMI for the month of June 2020, which will be released on July 9, 2020, as well as the June 30, the manufacturing PMI for China, will be released on June 30. The US manufacturing PMI for July 1 and the non-pharma payroll employment for June 2020 will be released on July 2, 2020. With this, the results of ONGC's fourth quarter will be released on June 30, 2020. Along with this, the market will keep an eye on the vehicle sales figures of automobile companies for the month of June 2020 which will be released next week. Between these events, the Sensex is likely to see a jump of 6 to 9 and the Nifty to 10,110 with a jump of 10,310.

Dark Horse (1): Nucleus Software Exports Ltd.

BSE (21,904), NSE (NUCLEUS) listed, Rs 10 paid-up, 1: 2 shares in 2001, 1: 1 shares in 2008, 1: 1 shares in 2008, three bonus issues, 3.81% of total equity through three bonus issues. Nucleus Software Exports Ltd., which has a bonus equity and a promoter holding of 7.5 per cent, has been providing credit-lending and transaction banking products to the global financial services industry for over 15 years. The company's software operates in more than 200 Fi National Institutions in more than 50 countries. Which provides support in retail lending, corporate banking, cash management, mobile and internet banking, automotive finance and other business areas.

The company's two flagship products are built on modern technology. In which Finnav has won 10 times as the best selling landing solution in the world. Finnaxia is an integrated global transaction banking solution for offering efficient and innovative global payments and receivables, liquidity management and business internet banking services by banks worldwide.

Among the company's products are lending-lending, transaction banking, digital channels and business analytics. These products-solutions company various industries Retail Banking-Auto Loans, Personal Loans, Housing Loans, Education Loans, Gold Loans, Credit Cards, Corporate Banking-Dealer Funding, Bills Discounting, Working Capital Funding, Transaction Banking-Payments, , Working Capital Management, Financial Supply Chain Management, other sectors such as Automotive Finance, Retail Finance, Non Banking Financial, Companies Mutual Banking and Islamic Banking. The company's products are installed in more than 50 countries.

The company's major customers:

Among the top 15 banks in the world, three customers belong to the company and three of the top 10 automotive finance companies have customers. First Valley Bank, Abu Dhabi Housing Authority, ADIB, Alaval Bank, Amcon, Apple, Atlas Finance, Accuset, Bank of Florida, Bangkok Bank, BBK, Philippine Business Bank, BOB Finance, BOQ, BAFEA CRDB Bank, Centrum, DCB Bank, Dhanlaxmi Bank, Duniya, Eastwest, Fidelity Life Financial Services, Five Star Business Finance Ltd., Finova Capital, Fullerton Credit, HDFC Bank, HDFC Bank, HDB Financial, , L&T Finance, Mannapuram Home Finance, NIB Bank, RAK Bank, PNB, Roha Housing Finance, Religare Commercial Loans, Prudential Finance, Shubham Housing Finance Company, Shinshei Bank, SMC Finance, Toyo.

Share holding pattern:

Promoters own 4.5 per cent, ICICI Prudential Technology Fund has 1.31 per cent, FPI-Fidelity Puritan Trust-Fidelity Low-Priced Stock Fund has 3.08 per cent, Arjun Jain has 1.50 per cent and individual shares up to Rs 3 lakh. Capital holders hold 15.50% of the stock.

Book value:

Rs.151.05 for March 2018, Rs.151.5 for March 2016, Rs.12.5 for March 2017, Rs.151.5 for March 2017, Rs.12.05 for March 2020, Rs.30.18 for March 2021

Financial Outcome:

(1) Full year April 2012 to March 2020:

Net income rose to Rs 4.5 crore from Rs 4.5 crore, NPM net profit rose to Rs 3.05 crore from Rs 4.5 crore, up 2.4 per cent, and earnings per share rose to Rs 4.05 crore. Achieved .0.05.

(2) Expected full year April 2020 to March 2021:

The expected net income is Rs 3 crore and the net profit is Rs 110.50 crore and the earnings per share is expected to be Rs 2.10.

(2) Valuation: B:

As the company provides credit-lending and transaction banking products to the global financial services industry, business has been less affected during the lockdown, while growth in mobile and internet banking and the use of credit cards have maintained business opportunities. Even if the company is given a P / E of 7 against the average P / E of 12 in the computer-software medium and small sector, the share can go up to Rs 50, considering the current market situation, the valuation single B. J Nucleus Software Exports Ltd. shares are currently on the BSE, NSE. But at a price of Rs 2.50, the expected earnings per share for the year 2020-21 is Rs 2.10 and the expected book value is Rs 30.15 against a P / EA of only Rs 2.05.

Dark Horse (2): West Coast Paper Mills Ltd

BSE (2007), NSE (WSTCSTPAPR) listed, Rs. 3 paid-up, West Coast Paper Mills Ltd., a reputed company in India and abroad for more than 21 years as a premium brand in the paper industry. The company has been able to produce extensive portfolio of wood-free papers and high-quality boards in many brands, with a vision of continuous upgrading of its processes and technology to offer uniform quality of customized products. Includes 500 GSM commercial to premium grade papers and boards. The six different product segments include writing, printing, business stationery, specialty, industrial and packaging.

The company has a strong presence in the paper of security and high-value grades. Which manufactures Vesco brand MICR check paper, bond, parchment, azure led, super shine, duraprint, alkali-resistant paper etc. It also offers a range of 50 to 200 GSM of cup stock and coated duplex boards.

The company operates with six versatile machines with an installed capacity of 250,000 tonnes per annum. The company has added a daily capacity of 200 tons of state-of-the-art voice paper machine.

The lockdown as a result of the Corona epidemic has had a negative impact on the company’s production, with short-term impact on demand. The company expects the situation to improve in the second quarter of FY21.

Andhra Paper Mills becomes a subsidiary of the company through acquisitions: Promoter sells 15.50 per cent holding in offer for sale

The company is owned by International Paper Investments (Luxembourg) S.A. 1,3,05,05 equity shares and IP International Holdings Inc. International Paper APPM Ltd's 8% holding with a total of 4,31,7 shares from and before and in October 2017 a further 13.50% share purchase in the company, a total of 3.50% share holding purchase was renamed as Andhra Paper Limited with its subdivision from January 8, 2020. . The promoters' holdings in the subsidiary have since risen to 8.50 per cent. The sale in Andhra Paper Mills Ltd. has been reduced to 3% as per SEBI guidelines by selling 12.5% ​​holding through Waste Cost Paper Mills in the two days of June 3 and 4, June 2, 2020 through offer for sale. Promoter Waste Cost Paper has received Rs 15 crore from the sale of this 15.50 per cent holding. In addition to the offer for sale, Bright Star Investments, a company owned by Radhakishan Damani, a well-known investor in Andhra Paper Mills Ltd., bought 500,000 shares at Rs. 206.5 per share on Friday, June 7, 2020. Shares of Andhra Paper Mills closed at Rs 311.50 on the BSE on Friday, June 4, 2020.

Share holding pattern:

Promoter-owned 2.18 per cent, mutual funds have 2.7 per cent, Reliance Capital Trustee-Nippon India Small Cap Fund has 2.4 per cent, L&T Mutual Fund has 2.15 per cent, others have Abacus Emerging Opportunity Fund. Foreign portfolio investors have 2.4 per cent, General Insurance Corporation of India 1.08 per cent. While individual shareholders with up to Rs 5 lakh have 12.51 per cent.

Book value:

Rs.15 for March 2018, Rs.30 for March 2020, Rs.305 for expected March 2021. Of course Andhra Paper Mills Ltd. As a subsidiary of the company and holding 2.3 crore shares in the company at West Coast Paper Mills, the current investment value per share is Rs. 4 crore, which adds up to a book value of Rs. As expected.

Financial Outcome:

(1) Full year April 2012 to March 2020:

Net earnings rose to Rs 2.8 crore from Rs 12.5 crore, net profit rose to Rs 206.5 crore from Rs 3 crore, earnings per share rose to Rs 4.05 from Rs 4.5 crore. .

(2) Expected full year April 2020 to March 2021:

With an expected net income of Rs 2.5 crore and a net profit of Rs 3 crore, earnings per share is expected to be Rs 30.

(2) Valuation: B:

Even if we give the company a P / E of 7.50 against the paper industry's average P / E of 7.5, the share can go up to Rs 313. Given the current market situation, a valuation single B has been given. The company's stock is expected to earn Rs 30 per share for the year 2020-21 and the expected book value of Rs 305 (Rs 3 with a holding value of Rs 3 per share in Andhra Paper Mills) at Rs 19.05 on NSE, BSE. P / EA of 3 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. (2) 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. (2) 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.