In the last week of 2020, the Sensex will see 45555 breaking 46266

(Gujarat News Correspondent) Mumbai, Ta. 26 December 2020, Saturday

While the calendar year 2020 is shaking the world with the Corona epidemic, this year 2020 has also witnessed a historic upheaval for the Indian stock markets. Corona's lockdown resulted in an economic downturn and an earthquake in the stock market in late March 2020. Which has since shown an unprecedented boom in history. The market is in need of an overboat position right now. But last week, the market initially showed an intra-day correction of more than 2,000 points in the Sensex, showing a correction and then rushed to a record rally. Still, in this record high, caution will be needed in buying stocks. With the December trend in futures and options (F&O) in derivatives coming to an end next week, don't be surprised to see index-based turbulent fluctuations next week.

Unprecedented historic boom with historic crash Boom caution needed at the end of the year 2020

The Indian stock market plunged to a historic high on March 4, 2020 due to the global crisis that led to a global mega lockdown as the Corona epidemic plunged the world into a historic crisis. With a 10 per cent lower circuit in the Sensex, it had plunged more than 3 points on the day, hitting a low of 7.31. Which came to the bottom of 8.30 on March 8, 2020. Along with this, the Nifty 50 index also came down to 710 with a bang of 114 points on March 9, 2020 and showed the bottom of 911.10 on March 9, 2020. This 2030 year of historic bang has also witnessed a historic rise of 4.8 per cent, or 8 points, from the bottom of the record, a new record of 16 and a record rise of 31,904 points, or 2.8 per cent, in the Sensex in a short span of eight months.

November Infrastructure Figures, Corona Vaccine Development, Brexit Deal, Foreign Funds

The development of the corona vaccine will be monitored on the global front with a look at the steady flow of foreign portfolio investors (FPIs) amid the holiday mood in the coming weekend. Along with this, next week's November 31 figures for India's infrastructure production will be released and the US dollar will continue to fluctuate against the rupee. Along with this, the world will also keep an eye on the developments taking place around the Brexit deal on the international front.

Dark Horse: Swaraj Engine Ltd.

Listed on NSE (SWARAJ ENG), BSE (2008202), Rs.10 paid-up, formerly promoted by Punjab Tractors Ltd. and later merged with Mahindra & Mahindra Ltd. and Kirloskar Oil Engines Ltd. in 17 years, shares in 1 year. Promoter Mahindra & Mahindra Limited, which has a market share of 21.5 per cent in the tractor industry in India, has an equity holding of 1.5 per cent and an equity hold of 1.5 per cent. Swaraj Engines Ltd., an equity promoter holding with a book value of Rs. 15 as on March 2020, with an expected book value of Rs. 31 as on March 2021 and an increase of Rs. 114.51 crore in mutual funds. મુજબ According to the book value, the expected book value is Rs. The company is engaged in manufacturing and supply of diesel engines in the range of 3 HP to 4 HP in Mohali-Punjab facilities. The company is equipped with high productivity and defined quality analyzing machines. The company is also active in the manufacturing of high-tech engine components. So far, the company has supplied more than one million engines for fitting in Swaraj tractors. The company's plant has facilities capable of producing Swaraj product mix of any model and is equipped with state-of-the-art high-tech machines.

Swaraj Engines Ltd will expand its annual production capacity from 15,000 units to 1.2 lakh units, with funding from internal sources. The company has sold a record 8.4 engines in the second quarter of the current financial year, with an encouraging performance, an increase of 21.5 per cent. The local tractor industry is the only segment to have been at the forefront of domestic automotive recovery since Kovid, which has seen a steady year-on-year positive growth since May 2020. From April to May 2020, the local tractor industry has seen an average growth of 20 per cent in retail sales volume every month from June to September. Sales of 5,000 units in October grew by 20 per cent. The industry is also expected to recover in the coming days on the back of strong income support from the sowing of good rains this year and the government's continued high spending in the agricultural sector. So the industry is also expected to have a healthy growth of 3 to 4 per cent in the financial year 2021. Local market leader Mahindra & Mahindra will also benefit and Swaraj Engine also plays a good role in the rural economy thanks to its anchor client Mahindra & Mahindra. The company supplies engines to Swaraj brand tractors, with Mahindra & Mahindra's tractor portfolio accounting for 30 per cent.

(1) Book value:

In March 2015, Rs. 216.11, March 2017, Rs. 4.15, March 2017, Rs. 15.5, March 2017, Rs. 18.41, March, 2020, Rs. 15.5, as expected, March 2021, Rs. 41 and mutual funds. As per the investment value of Rs. 114.51 crore, 1,31,9,50 paid-up shares, the additional book value of Rs. 4 per share, the expected book value for March 2021 is Rs.

(2) Bonus History:

1: 1 share bonus in the year 18, 3: 1 share bonus in the year 2006. Thus, through two bonus issues, it has a bonus equity of 2.50% of the total equity.

(2) Dividends:

20% in 2014, 30% in 2015, 200% in 2014, 200% in 2014, 200% in 2020

(2) Share holding pattern:

Promoters Mahindra & Mahindra Limited has an equity holding of 7.5 per cent and Kirloskar Industries has a share of 12.5 per cent, an equity promoter holding of 2.18 per cent, mutual funds have a share of 11.5 per cent, DSP Small Cap Fund has a share of 5.5 per cent and Fund trustees have 1.50 per cent, SBI Magnum Mid Cap Fund has 1.7 per cent, foreign portfolio investors have 1.15 per cent, insurance companies have 1.4 per cent, ICICI Lombard General Insurance Company has 1.4 per cent, high net worth investors Of these, Vikram Chandulal Shah has a holding of 1.4 per cent, Rita Keur Parikh has a holding of 1.4 per cent, corporate bodies have a holding of 7.5 per cent and individual shareholders up to Rs 2 lakh have a holding of 20.5 per cent.

Financial Outcome:

(1) Full year April 2012 to March 2020:

Net earnings fall to Rs 2.50 crore from Rs 21.5 crore, net profit falls to Rs 21.05 crore from Rs 2.8 crore, earnings per share fall to Rs 4.5 from Rs 3.5 Did.

(2) Second Quarter July 2020 to September 2020:

Net income rose to Rs 4.5 crore from Rs 4.5 crore, net profit rose to Rs 2.15 crore from a net profit margin of 4.5 per cent to Rs 2.15 crore, quarterly earnings per share stood at Rs 20. Achieved Rs. 2.5 from Rs.

(2) First Half Yearly April 2020 to September 2020:

Net income fell to Rs 206.5 crore from Rs 2.10 crore, net profit fell to Rs 2.7 crore from Rs 2.31 crore, half-yearly earnings per share fell to Rs 4.5 crore from Rs 4.5 crore. Have achieved.

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

Out of the expected net income of Rs 206 crore, the net profit is expected to be Rs 20 crore and the earnings per share is expected to be Rs 2.11.

(2) Valuation: B:

Even if we give the same P / E to Swaraj Engines Ltd., which gets more than 3 P / E against the average P / E of 80 in the engines industry, the valuation is single B.

Thus (1) promoted by Mahindra & Mahindra and Kirloskar Industries, (2) paying high dividends, giving 3% dividend yield, (3) having 2.50% bonus equity, (3) so far the company has supplied more than 10 lakh engines for fitment in Swaraj tractors. (2) Extending annual production capacity to 18,000 units to 1.2 lakh units. (3) Expected earnings per share for the expected full financial year 2020-21 to be Rs. 3.11 and book value expected to be Rs. 31 in March 2021 and Rs. The stock is currently available on BSE, NSE at a price of only Rs 13.50 with a P / EA of Rs 30.50 as against the expected book value of Rs 4 per share as per the additional book value of Rs 5 per share as per the investment value of Rs 114.51 crore.

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. (3) Our resources for researchers may be of direct or indirect interest, such as broking houses, 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. (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.