The new week will see the Sensex hitting 39888 to 38666

(Gujarat News Correspondent) Mumbai, Ta. Saturday, August 29, 2020

As the monsoon continues to be very successful across the country, the number of coronavirus infections is on the rise, but economic activity in the country is also on the rise, attracting more foreign funds to invest in Indian stock markets. With the Indian economy expected to recover and the monsoon successful, the recovery is expected to accelerate in the coming days, with the incentives being given to industries by the central government increasing the value-buying in foreign investors' stocks at attractive prices. In the weekend of the August trend, funds have rallied sharply in banking and finance stocks, pushing the Sensex above 500 and the Nifty above 11,500. However, given the precautionary warning issued by Reserve Bank of India Governor Shaktikant Das last week, saying the current market boom in the overbought market does not suit the economy, caution may be needed at any time. So now with the rise in fund stocks next week, the index-based market is likely to show a two-way volatility with caution.

GDP Growth Index, Manufacturing-Services PMI Index, Auto Companies Statistics, Dollar, Monsoon Progress

With the monsoon remaining good across the country, we are still looking at the progress of the monsoon in the coming week. India's Gross Domestic Product (GDP) estimates for the first quarter of the current financial year will be released on August 31, 2020 as well as India's infrastructure for July 2020. The market will keep an eye on the manufacturing PMI for August and the services PMI for September 4, 2020. In addition to the corporate results, ONGC's results for the quarter ending June 2020 will be released on September 1, 2020 and Coal India's results will be released on September 2, 2020, as well as the automobile companies' sales figures from August 1, 2020 to August 2020. On the international front, US-China strained relations, China's NBS manufacturing PMI for July will be released on September 1, and Japan's July industrial production figures will be 31, August 2020, and US non-pharma employment will be 31. August. The Market Manufacturing PMI for August is due on September 1. Thus, between the upcoming events in the new week, the Sensex is likely to see a collision between 7 to 8 and the Nifty 115 to 114.

Dark Horse: PNB Gilts Ltd.

BSE (2), NSE (PNBGILTS) Listed, Rs.10 Paid-up, 1: 2 Share Bonus Issue in the year 2016 with 3.5% bonus equity in total equity, Primary Dealership license licensed by Reserve Bank of India PNB GILTS LTD, a preferred and well-known name in the Indian debt market, was established as a wholly owned subsidiary of Punjab National Bank, one of the largest commercial banks in India. PNB Gilts is a leading entrepreneur with a good market share in overall trading turnover, playing a key role in strengthening the local fixed income markets. The company is the only listed primary dealer in India. Supporting the government's borrowing program through underwriting of government securities issues in the company's primary activities as a primary dealer and government securities (G-Sec), treasury bills, state development loans, corporate bonds and other interest rates. Papers etc. include trade. The company has a trading desk operated by experienced professionals with strong research and in-depth market experience. The company, which has completed 3 years of operation, has a diverse customer base in the fixed income market with its vast experience and incredible standards in services. The company's net worth has also increased from Rs 4.5 crore in FY16-17 to Rs 1,008.12 crore at the end of FY2017-20.

The company’s extensive customer list includes provident fund trusts, regional rural banks, cooperative banks, companies, individuals, etc. The company has an independent marketing and sales team for specific customer needs. In addition to having a one-stop shop for all investment needs, the company also offers advisory services to its clients with strong research to manage the government securities portfolio. With strong and reliability, the company provides its customers with highly transparent and timely services in the retail market.

The company has not had any financial impact due to Covid-17 and has estimated that there will be no impact on any liquidity position going forward. PNB Gilts Ltd has received an Ind-IND A1 Plus rating from India Ratings and Research for its Rs 2,000 crore short-term bank loan facility.

Banks, especially PSU banks, can make good treasury profits in a bullish debt market through their massive G-Sec holdings, but their profits are subject to the burden of NPAs, whereas in the case of PNB gilts, they have no credit risk as only G-Sec (Government Securities) ) Is mainly in investing and trading.

Share holding pattern:

Promoters have 2.08 per cent, mutual funds have 0.05 per cent, institutional investors have 0.15 per cent, foreign institutions have 0.05 per cent, corporate bodies have 7.5 per cent and individual shareholders up to Rs 2 lakh have 12 share capital. .2 percent.

Dividends:

11 per cent in 2014, 5 per cent in 2015, 10 per cent in 2015, 12 per cent in 2015, 20 per cent in 2020

Book value:

Rs.50.5 for March 2018, Rs.4.5 for March 2016, Rs.2.51 for March 2017, Rs.2.51 for March 2017, Rs.2.5 for March 2020, Rs.5.5 for expected March 2021

Financial Outcome:

(1) Full year April 2012 to March 2020:

Net income rose 5 per cent to Rs 4.5 crore from Rs 206.5 crore, net profit rose 2.11 per cent to Rs 19.50 crore from Rs 3.50 crore, earnings per share rose to Rs .10.5 was achieved.

(3) First Quarter April 2020 to June 2020:

Net income rose 15 per cent to Rs 21.5 crore from a net profit of Rs 4.5 crore on fair value changes as compared to Rs 12.5 crore, with a net profit jumping 9 per cent to Rs 2.10 crore from Rs 2.50 crore. Registered quarterly earnings per share have increased from Rs 4.21 to Rs 12.50.

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

With an expected net income of Rs 15 crore and a net profit of Rs 212.5 crore, earnings per share is expected to be Rs 4.5.

(4) Valuation: B: The company is getting two P / Es against the average P / E of 21 in the finance sector. Even if we give the same P / E, the valuation is single B so that the share can go up to Rs. One of the first companies to be given primary dealership licenses by the Reserve Bank of India with promoters holding (3) bonus equity in the total equity through a 1: 2 share bonus issue in the year 2016. (2) 5) In the first quarter from April 2020 to June 2020, the net profit rose by 20% and achieved quarterly earnings-EPS of Rs.17.50. (2) Expected full year April 2020 to March 2020 and expected EPS of Rs. The stock is currently available on the BSE, NSE at a price of Rs 1.50 against a price of only 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. (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 of Gujarat Samachar will not be responsible for your loss. So invest by recognizing the risk of the stock market.