The Sensex will see a break of 38222 and a level of 38022

(Gujarat News Correspondent) Mumbai, Ta. 12 September 2020, Saturday

The country's economy is in crisis with a steady rise in cases during the Corona epidemic. The Indian government is now likely to be forced to borrow heavily in this very bad time of the economy. With the economic situation worsening and the steady decline in industrial production, the growing unemployment problem in industries and companies is likely to take a turn for the worse, forcing the government to come up with a new massive stimulus package for incentives. Given the need for huge funds for this, you will not be surprised if the next day brings a major upheaval for the economy and the market. With the possibility of a massive erosion in the stock market next week, the Sensex is likely to see a break of the resistance level of 7 to 203 and the resistance level of the Nifty spot of 114 is likely to see a break of 114 to 114. Next week will look at the US Federal Reserve's September 13, 2020 policy meeting, the Bank of England, the Bank of Japan meeting, the August figures for China's industrial production and the US retail sales figures.

Government will be forced to take massive borrowings: 21 out of 52 recommendations to be sold in last one year

Due to Reliance Industries, the market has shown a recovery of nearly 50 per cent today from the low of Nifty 310 at 1130, which is the result of this situation. Reliance Industries' Nifty and high weightage in the Sensex have been the savior of stock market sentiment and listed stocks. At present, it seems unlikely that the Nifty will go above 11,500. Covid's second-highest number of cases in the world, the number of job losses rising every day, the first three months of this fiscal year full loss, while the average industry may have improved by 20% in the second quarter of July-September 2020, but the average revenue-revenue in these six months, PBIT and pet-net profit have been borne by maximum industries except some industries. If we continue our portfolio with the hope that the future will be good, the opportunity may prove to be lost. So we recommend selling 21 of the 52 Scripps-Stocks that have been advised in the last one year. Currently only 21 scrips continue under recommendation. We will try to increase the number of stocks again when there is a new boom or market stabilization. We advise every investor to reduce their investment portfolio by 30% to 40% in these circumstances and keep cash on hand.

SEBI's decision will give a golden opportunity of exit to those who have already invested heavily in small cap and mid cap.

The Securities and Exchange Board of India (Sebi) yesterday announced a decision to make it mandatory for mutual funds to maintain a portfolio of 5% each in their multi-cap funds, large-cap, mid-cap and small-cap. But every decision has two aspects. What matters is whether the decision is in the best interest of the mutual fund. Fund managers of mutual funds decide how much to keep in a small and mid-cap ratio. Now, if someone says keep it at 5%, it is not decided whether it will improve the performance of the fund or not. Now, from Monday to January 2020, this small, mid-cap event will be a golden opportunity for those who have bought holdings in the respective companies in percentage-percentages. While the net worth of salaried small and middle class investors who invest rupee in SIP-Systematic Investment Plan decreases. So that now medium and small investors do not withdraw and stop their capital investment from multi-cap funds.

Dark Horse: WPIL LTD.

WPIL LIMITED, a BSE-listed company (209) with a paid-up of Rs 10, a promoter holding of 7.5 per cent, was renamed WPIL in 19 after it started as Johnston Pump India in 19. The company was acquired by Prakash Agarwal of Kolkata from BM Khaitan Group in 2006. Has been working in the field of design, development, manufacturing, installation, marketing, spare parts and other works of pumps, etc. in the field of irrigation, irrigation, large irrigation schemes, thermal power, nuclear power and other plants of various sizes for vertical and horizontal pumps. Earning income. The company has expanded its business globally and now has manufacturing facilities in the United Kingdom, Italy, France, Switzerland, South Africa, Zambia, Australia and Thailand. The company's continuous investment in manufacturing and R&D covers 17 manufacturing locations. It covers the entire process of pump manufacturing including casting, fabrication, machining, assembly and testing. The company's local conventional pump division is close to Delhi, the only manufacturer of large submersible sea water lift pumps up to 1,200 kW in India. The company has five manufacturing plants in India. The company has manufacturing facilities at the Kolkata-based Local Engineered Pump Division and three plants in an area of ​​20,000 square feet.

(1) It has six manufacturing units in India. Of these, two are in Kolkata, one in Ganipur-2, Parganas District-West Bengal, one in Ghaziabad-Uttar Pradesh and two in Maharashtra. Apart from this, the company has stakes in 11 other subsidiaries, joint ventures. So that the importance of the company’s consolidated results outweighs the standalone. (2) WPIL LIMITED Company itself and its subsidiaries. (A) holds 51.8% stake in ATURIAL INTERNATIONAL PTE LIMITED. (B) MATHERS FOUNDRY LIMITED has a 51.5 per cent stake in the UK. (C) STERLING PUMPS PTE LIMITED AUSTRALIA has a 5% stake. (2) The company has expanded its reach in global markets and increased its achievement. (D) WPIL SOUTH AFRICA HOLDINGS PTY LTD, SOUTH AFRICA has 51.5% stake in (E) APE PUMPS PTY LIMITED, SOUTH AFRICA has 51.5% stake. (F) 31.3%. (G) RUTSCHI FLUID AG. SWITZERLAND has a 51.5% stake in (H) GRUPPO ATURIA SPA has a 31.5% stake in (I) PSV ZAMBIA LIMITED (ZAMBIA) has a 31.5% stake. (K) CLYDE PUMP INDIA PVT LTD has entered into a joint venture with India by acquiring 50% stake. (J) WPIL (THAILAND) CO.LTD. With a share of 70.12 per cent. (K) GLOBAL PUMPS SERVICES FZE has a 31.5% stake. (L) The company acquired GRUPPO ATURIA, a mid-size Italian group of companies in Italy in the financial year 2015 itself, after being acquired by FINDER POMPE in this European subsidiary. Was performed. Through which the company has strengthened its position in the oil and gas business. (2) Thus WPIL with 11 subsidiaries, one joint venture, one associate company with 5% to 100% stake in a total of 12 companies, India, South Africa, Thailand, United Kingdom, Zambia, Singapore, Australia, France, Switzerland. It has acquired a share in the pump industry in a total of 16 countries. The company is in the next stages of negotiations to modernize Mathers-UK's real estate assets.

The company has an order book of Rs 1,000 crore as on February 2020, which was Rs 2.91 crore as on June 1, 2017. The company is expected to see further improvement in operations from the second half of FY2021-21 after orders pick up in FY2030. The Mega Jal Jeevan Mission is expected to have major opportunities by 203. The global pump market is currently being affected by the Corona epidemic, but increased demand in the building and construction, oil and gas as well as mining industries in recent years and increased investment in developing nations have fueled industrialization in Asia Pacific and Latin America. After Kovid, new investments are expected in the developed markets of Europe and North America.

Share holding pattern:

Promoters Hindustan Udyog Ltd has 4.5 per cent, Ashutosh Enterprises Ltd has 12.5 per cent, Prakash Agarwal has 2.02 per cent, VN Enterprises has 7.5 per cent and promoters have a total holding of 4.5 per cent and mutual funds. Out of the 7.5 per cent holdings, Kotak Small Cap Fund has 2.4 per cent. Foreign portfolio investors have 1.04 per cent. Corporate bodies have 4.5 per cent. While Jehlik Promoters & Fincon Pvt. Ltd. Individual share capital holders with a share capital of up to Rs 5 lakh and the public has a holding of 6.9 per cent.

Book value:

Rs 2.15 in March 2018, Rs 4.51 in March 2018, Rs 305.5 in March 2017, Rs 4.5 in March 2018, Rs 4.50 in March 2020, Rs 4.5 in expected March 2021

Financial results:

(1) Full year April 2012 to March 2020:

On a consolidated basis, net income fell from Rs 114.5 crore to Rs 206.5 crore, net profit fell to Rs 5.50 crore from Rs 13.5 crore, earnings per share fell from Rs 19.50 to Rs 4.5. Did.

(3) First Quarter April 2020 to June 2020:

Consolidated net income rose three per cent to Rs 301.5 crore from Rs 12.5 crore, with a net profit of Rs 2.8 crore and a quarterly earnings per share of Rs 4.5 crore, compared to a net loss of Rs 2.17 crore in the same period last year. Have achieved.

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

Expected consolidated net income is expected to be Rs 4.5 crore, net profit is expected to be Rs 4.5 crore and earnings per share is expected to be Rs 2.5.

(2) Valuation: B:

Even if WPIL holds 7.5 per cent promoter holding against the average P / E of the industry as a whole and the company is limited to P / E against the expected book value of Rs 4.5, even if we calculate P / E of Rs. Valuation Single B in anticipation of being able to reach Rs

Thus, (1) 7.2 per cent of promoters including Hindustan Udyog Limited, (2) six plants in India and 12 plants abroad, a total of 17 plants in the pump industry, (3) 11 subsidiaries and one joint venture (4) from April to June of the first quarter of the current year. The best candidate for the portfolio is (2) the expected consolidated earnings per share of Rs. 2.3 against the expected consolidated share of Rs. Only 3.50 P / EA is available.

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.

Changes in the recommendation of stocks made in one year as Dark Horse: SELL recommendation to sell now out of 21 shares bought (BUY)

Of the stock-scrips recommended in the last one year as Dark Horse, 21 are recommended for sale, which readers should take note of. Here is the recommended price of the shares of these companies on the recommended date and the closing price of the last 11, September 2020 in brackets.

(1) Sinclairs Hotels Rs.21.10 (Rs.50.50), (2) Clariant Chemicals India Rs.302.5 (Rs.2), (2) Kamadhenu Ltd. Rs.100.5 (Rs.2.05), (2) 3M India Ltd. Rs.315.10 (Rs.12,8.50), (2) KEI Industries Ltd. Rs.2.50 (Rs.2.15), (2) TTK Prestige Ltd. Rs.2.50 (Rs.2.15), (2) Hind Rectifiers Rs.503.50 (Rs.12.50), (2) Sika Interplant Systems Ltd. Rs.12.5 (Rs.2.5), (2) Caltech NGS Ltd. Rs.20.5 (Rs.0.02), (10) Maithan Alloys Ltd. Rs.2.50 (Rs.2), (11) Shriram City Union Finance Ltd. Rs.150.5 (Rs.2.5), (15) Honda CL Power Products Ltd. Rs.116.5 (Rs.1008.50), (15) HDFC Bank Ltd. Rs.117.50 (Rs.107.50), (15) Ircon International Ltd. Rs.2.50 (Rs.2.5), (15) ISGEC Heavy Engineering Ltd. Rs.21.5 (Rs.2.5), (15) JMC Projects India Ltd. Rs.21.05 (Rs.21.50), (12) Associated Alcohols and Beverages Ltd. Rs.2.15 (Rs.2.05), (15) Waste Cost Paper Mills Ltd. Rs.12.05 (Rs.17.50), (15) Cochin Shipyard Ltd. Rs.5.5 (Rs.2.50), (20) Dalton Cables Ltd. Rs.2.5 (Rs.2.5), (21) Heritage Foods Ltd. Rs.2.5 (Rs.2.5).