The new week will see the Sensex collide between 38888 and 38044

(Gujarat News Correspondent) Mumbai, Ta. Saturday 22 August 2020

With the monsoon being very successful across the country this year, this factor has turned out to be a big positive for the Indian economy in the challenging times of the Corona epidemic. The monsoon is likely to prove to be a major positive factor in the coming days as it emerges from the post-epidemic lock-down period leading to a downturn in the economy. In Prime Minister Narendra Modi's mission to make the country self-reliant, the incentives given by the government during the challenging period, the positive effects of various measures to bring money into the liquidity system are now beginning to show in Unlocked India. The rural economy is likely to show good growth in the coming days as the rains recede with good rains. As economic growth picks up in the coming months, the steady flow of investment in Indian stock markets is likely to continue. So the market sentiment is currently positive.

Don't get bogged down in regrets of staying in stocks of companies without fundamentals in a sharp rise: get trapped

In this volatile market, many stocks are currently seen in overbought positions and even stocks of non-fundamental companies are rising abnormally due to operator-stakeholder operations, so investors need to be very careful in this bullish trend. Don't go for less that your full potential. It is advisable to invest only by looking at the fundamentals of the companies. With the market currently looking at an index-based overbought position, any major correction in the coming days will be likely to be cautious, with small, mid-cap stocks likely to become the only sellers in cash stocks.

The end of August will see a flurry of trends: Nifty to fluctuate between 115 and 1115

The August trend in futures and options is set to end on Thursday next week. For several days now, foreign funds have been steadily buying in stocks, strengthening the hold of the bulls. Index-based foreign funds have created an overbought position in the market by the end of August next week. It is likely to look the same. So that bounce caution will be necessary. Along with this, the market will keep an eye on the progress of the monsoon, fluctuations in the value of the rupee-US dollar and the international price of crude oil. On the global front, China's industrial profit figures for July will be released on August 8. While US durables goods orders will be released in July, consumer confidence figures for August and Europe will be released in August.

Dark Horse: Heritage Foods Ltd.

FMCG company Heritage Foods Ltd. (HERITAGE FOODS LTD.), Which earns 4.5 per cent revenue from milk sales, 2.2 per cent sales of milk products, 4.5 per cent fat and 4.05 per cent other products, has quarterly and annual financial results. Out of the remaining stock investments, 1,2,3,20 shares of Future Retail Limited and 2,8,31 shares of Paradise Home Retail are published at the mark-to-closing quarterly annual price table. Investors analyze the table with special care. From here, this article shows only the sale of milk and the profit and loss of FMCG products base operating income per share.

Milk sales during the first quarter of April 2013 to June 2020, with 50% bonus equity through 1: 1 share bonus, ISO 2000 certified, BSE, NSE listed, Rs. , Yoghurt sales have increased by 3%. The Heritage brand has emerged as a leading brand in South India due to its quality with less than one per cent sales cost. The company has maintained a debt-to-equity ratio of 0.5 per cent. Book value of Rs. 100 as per Rs. 3 paid-up, sales of 2,000 liters of milk per day, achieved in the first quarter. Success in opening a total of 1000 franchise outlets, currently expanding in the field of lassi and ice cream. The company has a network of 5,000 distributors for selling milk. The company buys 90% of its milk from farmers. The company is selling its products through milk, yoghurt, buttermilk, lassi, ice cream, frozen dessert, flavored milk, milk shake, cheese, sweets, ghee, butter, skimmed milk powder. In FY2030, the company procured 12.5 lakh liters of milk per day and sold 11.5 lakh liters per day. It also has a processing capacity of 2.50 lakh liters per day. The company has its own 3 special franchise parlors and 12,710 procurement representatives.

The company's 100 per cent subsidiary Heritage Nutivest Ltd., 9 per cent holding subsidiary Skill Raigam Power India Ltd. and 20:20 subsidiary Novadine-France and Heritage and Heritage Novadine Foods Pvt. Ltd. have various types of products.

The company has won the India Food Safety Summit Award, India Dairy Award in the financial year 2017-20. The company has Crisil's long-term rating A-stable and short-term A1.

Value of investing in stocks:

(1) Future Retail Ltd. has 1,3,8,50 shares with a value of Rs. 216.5 crore at a price of Rs. 15 per share. (2) Paradise Home Retail owns 2,8,31 shares, valued at Rs. 2.5 crore at Rs. 3 per share. Thus, the combined value of the investment is around Rs 20 crore. If we calculate the book value of this investment value at Rs. 3.5 and add it to the company's book value of Rs. 4.5 as on March 31, 2020, then the total book value is Rs.

Share holding pattern:

Out of the total holdings held by promoters at 4.50 per cent, mutual funds at 12.5 per cent, Kotak Equity Opportunity Fund at 2.31 per cent, Sundaram Mutual Fund Small Cap at 7.5 per cent, UTI Long Term Equity Fund at 4.5 per cent, Uni. Multi-cap funds have 1.18 per cent. Foreign portfolio investors (FPIs) hold 4.01 per cent of the total holdings, while Doric Asia Pacific Small Cape Mauritius holds 4.61 per cent. Among high net worth investors, V Sudha Sharda has 2.4 per cent and Vinodkumar Harakhchand Daga has 1.91 per cent. Individual shareholders up to Rs 5 lakh have 12.04 per cent stake.

Book value:

Rs 31.5 for March 2018, Rs 12.5 for March 2017, Rs 4.50 for March 2017, Rs 3.50 for March 2017, Rs 4.5 for March 2020, Rs 12 for expected March 2021

Financial results:

(1) Full year April 2012 to March 2020:

Net income rose 4.5 per cent to Rs 5 crore from Rs 20 crore, net profit fell 2.50 per cent to Rs 4.5 crore from NPM 6.15 per cent to Rs 15.5 crore, and earnings per share stood at Rs. Fell from Rs.5.5 to Rs.12.5.

(3) First Quarter April 2020 to June 2020:

NPM has achieved a net profit of Rs 412.8 crore and a net profit of Rs 4.05 crore through 7.8 per cent quarterly earnings per share of Rs 4.5.

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

Net profit expected to grow by 4% to Rs 200 crore, net profit from 7.5 per cent NPM to Rs 12.5 crore, expected to grow by 4%, earnings per share is expected to be Rs 4.5.

(2) Valuation: B:

Even if the FMCG industry's average P / E of 7 is limited to Heritage Food and gives a P / E of 20, the expected earnings per share of Rs 3.5 can go up to Rs 3. Which has been given a valuation single B considering the current market situation. The stock is currently available on the NSE, BSE at a price of Rs 4.5, with an expected earnings per share of Rs 4.5 and a P / EA of only Rs 12.5 against the expected book value of Rs 15. Taking into account the value of Rs 5 per share invested in the company's Future Retail and Paradise Home Retail stocks, the book value per share could be as high as Rs 15.

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 wrong. 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 of Gujarat Samachar will not be responsible for your loss. So invest by recognizing the risk of the stock market.