The new week will see the Sensex jump 37474 to 37777

(Gujarat News Correspondent) Mumbai, Ta. 18 July 2020, Saturday

On the global front, the resurgence of the corona transition and the resurgence of cases in Asia-Pacific countries in Japan and other countries, on the other hand, China's economy has begun to show positive growth again, pushing the world into the Corona conflict. So again, with China on one side and the world on the other, the economic crisis is showing signs of escalating, but Corporate India's results are better than expected in the US in the late June 2020 season of corporate results, with good results from HCL Technology yesterday and HDFC Bank today. The monsoon is succeeding. International crude oil prices have continued to weaken. With these positive factors, corporate India, including Reliance Industries, is succeeding in attracting huge global investment flows. Along with these positive factors, the government's continued efforts to boost economic activity in these challenging times have also led to a resurgence of foreign investment in Indian markets. As a result, the Sensex has crossed the 9000 level and the Nifty has crossed the 10300 level. The market is likely to become more selective in the coming week amid corporate results as well as monsoon progress.

Axis Bank, Bajaj Finance, Hindu. Look at the results of Unilever, ITC, Asian Paints, Larsen, Bajaj Auto

According to corporate results, HDFC Bank's quarterly net profit rose 30 per cent to Rs 4.5 crore and net interest income rose 21 per cent to Rs 12.5.5 crore in challenging times. The company results to be released next week include ACC Bank, Bajaj Finance, Bajaj Finserv, Hindustan Unilever's results on Monday, July 30, ACC on July 21 and Tuesday, July 21, Bajaj Auto, Larsen & Toubro ITC will be monitoring the results of Asian Paints in July.

AGR case verdicts in telecom sector, US stimulus measures, look at manufacturing PMI

The adjustment gross revenue (AGR) case for telecom companies in India will be heard in the Supreme Court next week on July 30. In the midst of the current Corona epidemic on the international front, further measures of possible stimulus by the US and the US manufacturing PMI for the month of July will be released in July and the Euro Area Market Manufacturing PMI in Europe will be released on the same day. Among these factors, the Sensex is likely to jump 5 to 7 next week and the Nifty spot will jump to 11,111 in the next week.

Dark Horse: Cochin Shipyard Ltd.

Cochin Shipyard Ltd., Government of India, listed on BSE (404), NSE (COCHINSHIP), Rs. 10 paid-up, established as a wholly owned subsidiary of the Government of India in 2012 and completed its IPO in 2012 and buyback in 2014. .2% is a promoter holding company. The company, which has been in existence for over four decades, is a leader in the Indian shipbuilding and ship repair industry as well as a well-known enterprise in global shipbuilding. Cochin Shipyard has already exported six ships to various commercial customers outside India, including National Petroleum Construction Company (Abu Dhabi), The Clipper Group (Bahamas), Varun Offshore (Netherlands) and SIGBA AS (Norway).

The company has built and repaired several large ships in India and is currently building a prestigious indigenous aircraft carrier for the Indian Navy. Over the years Cochin Shipyard has become active in the construction of small and more technically sophisticated vessels such as passenger vessels and offshore support vessels, ranging from bulk shipbuilding to changes in shipbuilding requirements of the markets. The company has worked with many leading technology companies in the industry such as Rolls Royce Marine (Norway), GTT (France), Werd Group (Norway) etc. With this the company has added to its credibility in the international markets. Leading customers in the company's shipbuilding include domestic Indian Navy, The Indian Coast Guard, DRDO, A&N Administration and JSW Group. The company has also repaired a variety of vessels, including an upgrade of ships in the oil exploration industry. This includes periodic maintenance, repairs and extending the life of ships.

The growth of the Indian shipbuilding industry has been consistently driven by defense needs. The Indian Navy currently has 16 ships in its fleet, with plans to increase the number to 200 by 203. Which is expected to lead to a large increase in indigenous shipbuilding. In addition, the Indian Navy's indigenization plan is likely to improve the growth of ancillaries and the environment for shipbuilding in the country. According to the Government of India's Vision Draft Defense Production Policy, India is to be ranked among the top five countries in the world in the aerospace and defense industries. It aims to meet the demands of other friendly countries while becoming self-reliant with the active participation of the public and private sectors.

Cochin Shipyard is setting up a new dry-dock at Kochi at a cost of Rs 12 crore, which is expected to be operational by the end of FY207. The dry dock will be able to handle Suezmax, aircraft carriers 2000T displacement, jack-up rigs, ships capable of up to LNG vessels. The company is constructing an international ship repair facility at a cost of Rs 20 crore, which was planned to be operational by FY2021. But delays in the aftermath of the Kovid epidemic are likely to cause some delays in the operation of the Dry Dock and ISRF. The dry dock is expected to be operational by December 207. 41% physical work of dry dock has been completed. The facility will be able to repair up to 4 ships. Which will double the number of the company's annual ship repair capacity. While 8% of ISRF's physical operations have been completed, the facility is expected to be operational by December 2021. The company expects the Hooghly Cochin Shipyard unit to be operational by March 2021. This ISRA and dry dock facility will benefit the ship repair business in FY2075.

Cochin Shipyard has recently lost some bids for floating docs from the Navy and pollution control vessels from the Indian Coast Guard. The company expects opportunities in the next few quarters for bids and orders worth between Rs 150 billion and Rs 150 billion. Including bids for new-age missile vessels. Bids have also been received from DPSUs, L&T, Garden Rich Shipbuilders, MDL. The company will also bid for multipurpose vessels and off-shore petrol vessels, which are currently in the RFP phase. As a result of the current challenging times, the company's revenue is likely to grow modestly in the current full financial year 2020-21. The company currently employs 90% of its employees. Leading customer Indian Navy is postponing the cash flow for the first quarter to the second quarter and Cochin Shipyard, which relies on migrant workers, is expected to delay both its capacity expansion projects. However, the company is focusing on receiving orders for ship-building operations worth Rs 150-150 billion from the Indian Navy in the near future. Along with this there are also opportunities in Coastal Shipping from private sector customers in Europe. So there are ample opportunities for the company to build a ship for the next three years. The company has added to the capacity for fishing vessels by acquiring assets at Tabma Shipyard.

Share holding pattern:

Promoter Government of India has 2.7 per cent, Mutual Funds have 7.5 per cent, Foreign Portfolio Investors have 1.4 per cent, Financial Institutions-Banks have 2.15 per cent, Life Insurance Corporation of India has 1.7 per cent, Insurance companies have Out of the 1.3 per cent, ICICI Lombard General Insurance Company has 1.4 per cent and individual shareholders up to Rs 3 lakh have 4.5 per cent.

Dividends:

120% in 2014, 15% in 2014, 150% in 2020

Book value:

Rs.151.05 for March 2013, Rs.12.05 for March 2016, Rs.4.51 for March 2017, Rs.2.51 for March 2017, Rs.2.50 for March 2020, Rs.5.5 for expected March 2021

Financial results:

(1) Fourth quarter January to March 2020:

Net income rose 4 per cent to Rs 216.5 crore from Rs 4.5 crore, net profit rose 4 per cent to Rs 12.5 crore from Rs 4.31 crore, quarterly earnings per share rose to Rs 5.51 crore Achieved 10.3.

(2) Full year April 2018 to March 2020:

Net profit rose 19 per cent to Rs 2.7 crore from Rs 2.50 crore, net profit rose 5 per cent to Rs 2.7 crore from Rs 31.12 crore, full-year earnings per share-EPS Rs 4.5 Achieved Rs.5.5 crore.

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

Out of the expected net income of Rs. 212.5 crore, net profit of Rs. 3.5 crore is expected and earnings per share is expected to be Rs. 3.5.

(2) Valuation: B:

Even if we give the company a P / E of 9 against the industry average P / E of 10, the share can go up to Rs. 30. Valuation Single B. The stock of the company which is currently on NSE, BSE at Rs. P / EA is available.

Thus (1) one of the leading companies in India in the field of shipbuilding and repairing (3) a high dividend paid by the Government of India holding (2.) a high dividend (3) a high dividend paid (3) a net profit growth of 2% in the recently completed January to March 2020 quarter Achieved 3% growth in net profit from full year April 2018 to March 2020. (2) As a result of Covid-12, earnings per share in the current challenging global financial year 2020-21 rose to Rs. P / EA of only 4.5 is available on NSE, BSE at a price of Rs.

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 author, editor and anyone of Gujarat Samachar will not be responsible for your loss. So invest by recognizing the risk of the stock market.