The Sensex will see a collision between 38638 to 37637 and the Nifty between 11333 and 11033

Mumbai, Dt. 25 July 2020, Saturday

At a time when the global economy is facing challenges amid the Corona epidemic, each country is trying to come up with economic packages to save its economy from this crisis. But in the new round of corona, the increasing number of corona cases in different countries and the number of new cases registered in India every day has increased to 30,000. Despite the softening of global markets, the relentless buying of foreign funds and foreign portfolio investors in the Indian stock market has pushed the Sensex above 7,000 and the Nifty above 11,000 last week. However, the big boom in Reliance Industries in this round of boom has been in the role of president. Along with this, the rise in banking-finance, FMCG, pharma, IT stocks has also accompanied. The correction in the overbought position of the market has been overdue for several days, but the bulls, the bulls, have kept the bullish cycle afloat by not giving a shit. However, as the market situation becomes more volatile, bullish trading will be leveled at the bears, and the possibility of a major upheaval cannot be ruled out as the July trend in derivatives ends next week. So caution will be required in index based trading.

Look at the results of Reliance Industries, State Bank, HDFC, Bharti Airtel, Kotak Bank, Dr. Reddy's

As the monsoon is showing good progress in the country now, the current year is also likely to see good growth in the agro-rural sector. The country's economic growth is expected to accelerate through higher growth in the sector in the event of a recovery from the Corona era. On the basis of which recovery is expected in automobile, FACG, finance-banking sector. But it will be difficult to say how long the transition of these cores will last, as a big correction is expected at any time with the market booming shocks and caution will be required in bullish trading. Large erosion in the market has stalled as corporate results are reported to be weaker-than-expected for the quarter ending June 2020. Now, next week, the results of Reliance Industries will be released on July 20, along with the results of HDFC Limited on the same day, the results of Kotak Mahindra Bank, Tech Mahindra and Bharti Infratel will be announced on July 7, 2018. GlaxoSmithKline Pharma, Bharti Airtel's results and Indian Oil Corporation and State Bank of India's quarterly results for the end of June 2020, which will be released on July 31, 2020.

On the international front, look at US Federal Reserve interest rates, China, Japan and Europe.

On the international front, further development of rising US-China tensions next week, as well as interest rates to be announced by the US Federal Reserve on July 3, 2020, China's NBS Manufacturing PMI for July, will be released in July 31, with the U.S. The euro area will keep an eye on the July inflation figures for July 2020. Thus, next week will be the end of the July trend in derivatives, with the Nifty likely to hit between 115 and 1105 and the Sensex between 7 and 8.

Dark Horse: DELTON CABLES LTD.

Listed only on BSE (2020), Rs. 10 paid-up, holding 2.50% promoter holding, established by Ram Kumar Gupta in the year 19, having a total equity of 21.5% bonus equity through 3: 1 share bonus issue in the year 2016, India Leading in the development of the electrical industry, ISO 2001 to 2015, ISO 15001 to 2016, OHSAS 19001 to 2008 Certified Dalton Cables Ltd. (DELTON CABLES LTD.) The company, which has prestigious awards including the Export Engineering Promotion Council (EEveme), exports products to more than 20 countries and employs more than 200 people, provides product solutions to 17 different business segments. These include telecommunications, oil-gas, cement and steel, power and mining, water treatment plants, sewage treatment plants, transportation, railways, NGOs, premise infrastructure, aerospace, defense.

Manufacturing Facilities-Products:

The company has its own state-of-the-art manufacturing facilities in Faridabad-Haryana. The company's products include Power and Control Cables, Instrumentation Cables, Building Wires, Flexible Cables, Medium Voltage Cables, ABC Cables, Railway Signaling Cables, Solar AC-DC Cables, Cat Five Cables, Cat Five-Cat Cables, Cat Five-Cat Cables, Cables, Telephone Cables, Drop Wire, Coaxial Cable, Welding Cable, Cathodic Protection Cables, Thermocouple & Compensating Cables, Special Cables. The company's specialty cables are used in various applications - Marine, Oil & Gas (Offshore and Onshore), Extreme Fire Condition, High Corrosive Environment, Traffic Signaling, Aircraft, Space Station, Automobiles, Anti-Theft Cable, VVF Cable. While switchgear includes various MCBs and various changeover switches as well as various distribution boards.

List of leading customers:

The list of major customers of the company includes General Electric, Honeywell, ABB, Indian Oil Corporation, Indian Railways, Larsen & Toubro, NTPC, Punj Lloyd, Reliance, Sail, Suez, Delhi Metro, Tata Steel, Yokogawa, Siemens, BHEL, Airports and Power Grid Corp, JSW, BSNL, Advance Systec, Dusan, OPGC, Ericsson.

The company derives 40 per cent of its total turnover from wires and cables. The slowdown in the global and Indian economies has affected the company's operations over the last three financial years. However, with the FY2030 recovery, the company has seen a steady profit growth in all product verticals with an increase in market share. The company has received confirmed orders from various PSUs. From FY2017 to FY2030, the company has taken a number of steps to reduce both its operating costs and working capital levels. Following the introduction of these additional funds by the promoters, the company's gearing ratio has also improved with the reduction in the interest expense burden of the company to 1.15 * in FY2017 and further improved to 0.5 * in FY2050.

Liquidity:

Dalton Cables has been able to see a steady improvement in its liquidity position since March 2015. The liquidity situation has improved significantly by raising Rs 30 crore non-core assets and unviable units by the promoters in March 2017 and raising funds in FY18.

The wire and cable market in India accounts for about 40 per cent of the electrical industry, and is growing at a CAGR of 3 to 4 per cent. The rise of the government, government schemes like DDUGJY, IPDS, Pradhan Mantri Sahaj Bijli Har Ghar Yojana and recent policies and regulatory initiatives are expected to give a boost to the sector. Global investors are also considering investing in India in view of the huge market potential for high voltage and extra high voltage cables.

Dalton Cables has been able to bring all its units under one roof in Faridabad and reduce operating costs such as wages, power and fuel and other administrative costs through consolidation. However, the business continues to face stiff competition from other major cable manufacturers as it seeks large working capital due to some risk factors. At the same time, the fact that the demand-supply situation depends mainly on the infrastructure sector will have a direct impact on the company's revenue growth and profitability.

Share holding pattern:

Among the high net worth investors, Hulas Rahul Gupta has 1.50 per cent, Mahendra Girdharilal has 2.4 per cent, Prashant Jayantilal Patel has 1.05 per cent, corporate bodies have 7.5 per cent, Sua Explosives and Accessories. Ltd. holds 1.7 per cent and individual shareholders up to Rs. 3 lakh hold 12.5 per cent.

Book value:

Rs.5.5 in March 2018, Rs.5.5 in March 2020, expected Rs.4.5 in March 2021

Financial results:

(1) Full Fiscal Year April 2018 to March 2020:

Net income rose to Rs 12.5 crore from Rs 4.08 crore, with a net profit of Rs 30.8 crore through NPM 7.5 per cent (last year 2016-17. 3 crore.) Compared to Rs. 3.15 crore, the earnings per share has reached Rs. 3.15 crore.

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

With an expected net income of Rs 12.5 crore, net profit of Rs 4.05 crore through 7.5 per cent NPM is expected to earn Rs 10.81 per share.

(2) Valuation: B:

Even if the company is given a P / E of 7 against the average P / E of Cables-Power and others at 17.50, the stock can reach 30, which is given a valuation single B considering the current market situation.

Thus (1) with 2.50% promoter holding (2) 3: 1 share bonus issue in the year 2013 with 31.2% bonus equity in total equity (3) More for quality cables, wires and switchgear products in India. With a successful record of years (2) Customer list of reputed domestic and foreign companies, Existing its products in more than 30 countries Existing (3) Expected full year April 2020 to March 2021 Earned earnings per share Rs. The stock is currently only available on the BSE at a price of Rs 4.5 against a P / EA of Rs 4.5.

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. (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.