The new week will see the Sensex break 38,222 to 37,666

(Gujarat News Correspondent) Mumbai, Ta. 19 September 2020, Saturday

The situation has become a major concern for the global recession as some countries are taking re-lockdown measures with a view to withdrawing unlock concessions due to the worrisome increase in the Corona transition. Of course, in the midst of this situation, rising unemployment in India and the deteriorating state of industry, the government is again demanding a bigger economic package. But amid falling tax revenue and anticipation of a recession in the country, business sentiment has been shaken by a sharp drop in advance tax payments and a growing demand for financial assistance from states with declining revenues, forcing the government to borrow heavily in the coming days. Any such decision on the economic front could suddenly dampen market sentiment. So it is advisable at the present stage to take the profit home or tie the knot of loss as a precaution in the rise in stocks.

Success of IPO, market likely to shake up in overbought zone despite monsoon positive factor

Investors are likely to be attracted to the primary market in view of the recent overwhelming response to the IPOs of stocks, including Happy Mind, and the IPOs of three companies coming up next week. With the success of this IPO, the rural economy is expected to grow rapidly in the coming days with high growth in the agricultural sector as the monsoon is very successful in the country. Of course, considering the good progress being made in the search for corona vaccine and the success of more vaccine trials in the coming days. The attractiveness of foreign funds in Indian stock markets can be reduced or increased. But now that the US presidential election is approaching, the possibility of panic selling in stocks cannot be ruled out in the face of further deterioration in US-China and Indo-China economic ties. So it would be advisable to ease the bullish trade without straining the stocks. Along with the rupee-US dollar fluctuations, the international market price of crude oil will be monitored by Indian markets along with global markets. Next week, the Sensex is likely to break the 3 resistance level of 9 and the Nifty 115 resistance level of 114 will be seen breaking 111111.

Dark Horse: Cosmo Films Ltd.

Listed on BSE (20616), NSE (COSMOFILMS), Rs.10 paid-up, with a 1: 1 share bonus issue in the year 2005, having a bonus equity share of 2.3% of the total equity, established in the year 191, ISO 9001: 2000, Cosmo Films Ltd. (COSMO FILMS LTD.) With 2004 Certified, British Retail Consortium (BRC) Certifications is one of the global leading companies in specialty films for packaging, lamination and labeling applications. The company is the largest exporter of BOPP Films from India and the company in the world, offering Byxally Oriented Polypropylene (BOPP) Films, Cast Polypropylene (CPP) Films and Byxyley Oriented Polyethylene Teriphthalate (BOPPET) Films. And the world's largest manufacturer of thermal laminating films with sales offices in India, the US, Europe, Japan, Korea and Thailand and global channel partners in more than 30 countries. The company is a leading exporter of BOOP films and exports to more than 100 countries.

Manufacturing Facilities-Capacity:

The company has state-of-the-art manufacturing facilities, including three in India and one in Korea. In India, it is in Waluj-Aurangabad, Karjan-Vadodara, Shendra. While in Asan-Korea, BOPP Films has an annual manufacturing capacity of 1,4,000 tonnes, acquiring GBC Commercial Print in thermal lamination films, and now the world's largest manufacturer, has a capacity of 20,000 tonnes, and 500,000 tonnes of metallized films. Tons, CPP Films has an annual capacity of 10,000 tons. The 100 per cent subsidiary of the company is set to start production of specialty masterbatches in the quarter of FY2021 and production of chemicals in the fourth quarter. The company has six patents in India and three in the United States.

The global demand for BOPP is estimated at 3 million tonnes per annum. Global demand and supply conditions are broadly balanced except for China. At present, the production capacity of BOPP in India is estimated at 4.50 lakh tonnes per annum. India's domestic demand is around 2.50 lakh tonnes. The rest is exported. The Indian BOPP industry is growing at twice the GDP of India. The rapid growth in demand for BOPPs is projected in view of the growing size of the packaged food industries and the growth in people’s eligible income.

Cosmo Films is focusing on 100% water based coatings, oxo-biodegradable films. Along with this is the invention of recyclable laminates. It is also focusing on the sustainable alternative of heat resistant film, transparent heat resistant barrier film, synthetic paper-pulp based paper.

Expansion plan at a cost of Rs.500 crore:

On September 1, 2020, the company announced that it plans to re-install Specialty Polyester Films Line (Bixily-Oriented Polyethylene Terephthalate) by the second quarter of the year 205-2. The company plans to renovate its Waluj-Aurangabad plant site at Rs. The line will work. The plant already has BOPP lines, extrusion coating lines, chemical coating lines, metallizers and CPP lines. The new production line complements the current BOPP's annual capacity of two lakh tonnes. The project will cost an estimated Rs 300 crore. Which will be provided through internal financial sources and loans. The company has a reserve and surplus of Rs 216.5 crore. Over the last few years, the company has managed to get 20 to 5 per cent of its total sales from specialty films. The company has recently invested ૧૦ 1 million in a new R&D center in India. Customized Product Trials has launched a new pilot line for film manufacturing, coating and lamination. The company has recently installed a new high automated 7.5 meter coating line and is capable of both side coating in a single pass. The company will launch a pilot in NCR in the next 12 months with an investment of Rs 15 crore. Which will have to test the ability of the pet care business to start massively going forward. The company currently has a net debt equity ratio of 0.2 as of June 2020.

President Customer List:

Aditya Flexipack, Ulti Packaging, Amcor, American Packaging, Apple, Avery Denition, Beck Ambalaj, Bemis, Britannia, Cadbury, Carlos Berg, Coca Cola, Colgate Palmolive, Con Agra Foods, Konstania Flexil, Konstania Flexil, Forms Est., Flexo Sping, Godfrey Phillips, Hutamaki, ITC Ltd, Chris Flexipex, Mars, McDonald's, Mini Pecan, Nestle, P&G, Parle, Pepsi, Ferro Rocher, Unilever, Cream Bell, Ultimate Packaging, Perfe Including Recti Bankshire, Mr., SMI, United Biscuits.

Share holding pattern:

Promoters hold 2.18 per cent, foreign portfolio investors hold 1.7 per cent, mutual funds hold 0.31 per cent, high net worth investors Anil Kumar Goyal holds 1.7 per cent, Lucky Holding Pvt Ltd holds 1.4 per cent, Cosmo Films ISO Trusts have 2.9 per cent, Equitas Equity Scheme 0.2 per cent, Principal Small Cap Fund 0.2 per cent, Government of the Province of Alberta 0.2 per cent and corporate bodies 7.5 per cent. While the individual shareholders of Rs 5 lakh have 20.5 per cent.

Dividends:

100% in 2014, 100% in 2014, 30% in 2014, 30% in 2014, 150% in 2020

Book value:

Rs.18.05 for March 2013, Rs.211.2 for March 2016, Rs.2.5 for March 2016, Rs.2.5 for March 2016, Rs.2.51 for March 2017, Rs.2.50 for March 2016, Rs. Rs.90.5, expected Rs.3.51 as on March 2021

Financial Outcome:

(1) Full year April 2012 to March 2020:

Net income rose to Rs. 206.5 crore from Rs. 313.5 crore, net profit rose to Rs. 114.5 crore from Rs. 212.10 crore to Rs. Achieved .18.

(3) First Quarter April 2020 to June 2020:

Net income fell to Rs 21.5 crore from Rs 21.05 crore, net profit rose 2.15 per cent to Rs 4.5 crore from Rs 2.8 crore, earnings per share rose to Rs 5 from Rs 12.5 crore. Achieved .50.

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

The full-year earnings per share is expected to be Rs 3.15 per share, with an expected net profit of Rs 15 crore, with an expected net income of Rs 2,108 crore.

(2) Valuation: B:

Even if the company is given a P / E of 7 against the plastic industry's average P / E of 12.5, the share can go up to Rs. Given the current market situation, the valuation is single. B. The stock is currently available on the NSE, BSE at a price of Rs. 219, with a book value of Rs. 4.31 as expected in March 2021 and an earnings per share of Rs. Is.

Thus, BOPP Films, one of the world's leading exporters in 100 countries and one of the world's largest exporters of specialty films for packaging, lamination and labeling applications, has (1) one of the world's largest exporters in 100 countries, with (1) 2.18 per cent promoter holding, 2.8 per cent dividend yield. (2) Bonus equity accounted for 4.5 per cent of total equity (2) Net profit rose 4% in the first quarter from April 2020 to June 2020 (3) Cosmo Films Ltd. For the full year 2020-21, the expected book value is Rs. 4.31 and the expected EPS is Rs. 3.15 against the P / EA of only 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 invested in shares of South Indian Bank in the shares of the above companies. (2) Our resources for researchers such as Broking House, Promoter Views, Personalized , Portfolio management or their team may have a direct or indirect interest. (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. (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.