The Sensex will hit between 49555 and 48111 in the new week

(Gujarat News Correspondent) Mumbai, Ta. 09 January 2021, Saturday

Corporate India's December quarterly results season has begun. Despite the expected modest results from IT giant Tata Consultancy Services, the funds continued to push ahead with an index-based record-breaking rally in stocks over the weekend after a short-term correction. Foreign portfolio investors continue to buy despite many negative factors globally and at home. In the new era of Corona transition, the U.K. The growing crisis in European countries, including the global economic crisis, on the one hand, and the relentless buying of foreign funds in the Indian market on the other, has come as a surprise. Funds have also continued to buy shares, signaling the introduction of provisions announcing surprise incentives in the forthcoming historic Union Budget by Finance Minister Nirmala Sitharaman. So it is advisable to be extremely cautious in the current surge in stocks amid budget preparations. Even if the budget is very good, the rise in stocks will ease the opportunity for offloading funds.

It is imperative to book profits in Lavlav: the storm that is going on in the midst of budget preparation: avoid the regrets of being trapped.

On the one hand, foreign funds are making huge purchases in stocks on a daily basis, but on the other hand, local funds are selling on a daily basis. So the boom is over now. Regardless of the fundamentals of the companies, investors are now rushing to the market out of regret. At present, many are looking desolate in their respective businesses for profit, so the villagers are rushing to make a fortune in their home-based stocks. Repeatedly, don't be fooled by this boom. Avoid getting caught up in the record highs in stocks of companies without fundamentals. Stakeholders have become proactive in trapping investors in penny stocks of weaker companies, don’t fall into their trap. Even in the midst of budget preparations, it is advisable to stay away from making new big purchases in this storm of relentless record bullishness and relax the stocks and take profits home.

Infosys, Wipro's January 18, HCL Technology's January 12 results look

The corporate results season will now look at Infosys and Wipro's January 13 results and HCL Technologies' January 15 results. On the global front, amid growing concerns over the new form of Corona, the number of cases will be on the rise, along with China and the United States in December. On the global front, the Indian rupee will fluctuate against various currencies against the US dollar and international crude oil prices will be on the lookout. Among these factors, the Sensex is likely to hit between 9 and 2111 next week and the Nifty between 12 and 19111.

Dark Horse: Hindustan Composites Ltd.

Rs 5 paid-up, BSE (303), NSE (HINDCOMPOS), 7.5 per cent promoter holding, 3: 4 bonus in year 13 and 1: 2 share bonus in year 2016 thus having 2.2 per cent bonus equity through two bonus issues. Hindustan Composites Ltd. (HINDUSTAN COMPOSITES LTD.) Has been in India for more than 3 years now, having bought back shares at Rs. 20 against the market price of Rs. 200 per share in 2011 and has current and non-current investment assets of Rs. Leading in the development, manufacturing and sales of products and friction materials. Composites are used in a wide range of industries suitable for general and special applications such as railways, engineering, mining, aerospace, steel, chemicals, petrochemicals, fertilizers, power generation, ship building, atomic NGOs, oils. The technology-driven company is committed to continuous upgradation and development of materials and processes to ensure high quality.

Manufacturing facilities:

The company manufactures two manufacturing plants (A) at Aurangabad-Maharashtra for HCV and LCV and two-wheeler automotive brake linings, automotive disc brake pads, railway brake pads, automotive roll lining. (B) The second plant in Nagpur-Maharashtra manufactures clutch facings- wet mix, molded, dry mix, random round, ceramic buttons and friction sheets, compost sheets and rings, mill board, MB disc, industrial roll lining etc. The company sells more than 10,000 outlets in all the states of India through 12 exclusive distributors and has two depots, one in Kanpur and the other in Kolkata. The company's products are certified by AMECA, and the company exports to more than 20 countries in Latin America, Greece, the Middle East and Southeast Asia. The company has also received the Export Award from the Government of India. The promoter group consists of Rasoi Limited, Rasoi Express Pvt Ltd, JL Morrison and Hindustan Composite Limited.

Hindustan Composite Ltd. ADVICS NORTH INDIA PVT. LTD. Has worked with a joint venture. J Chhaghfainbhaji Rbh. Ng. It is a joint venture between Denso Corporation, Sumitomo Electric Industries Limited, Toyota Motor Corporation and Aishin Seiki Company Limited. Of the four Japanese companies, HCL holds 51 per cent in Compo Advix India Pvt Ltd and Advix (a group of four Japanese companies) holds 4 per cent. The company manufactures disc brake pads and related components for passenger vehicles.

List of foreign customers:

Mercedes, Mann, Benz, Scania, Ford, trailer

List of Indian customers:

Escorts, Sail, Look, NTPC, Tata, Indian Railways, Hindalco, RCF, Mahindra, Reliance Industries Limited, Ashok Leyland, Indian Oil, Tata Steel, TVS Group, Aditya Birla Group etc.

(1) Buyback details:

In 2010-11, when the market share price was Rs 610, the company bought back 2,6,000 shares at Rs 21.5 crore at a price of Rs 50.

(2) Bonus:

3: 4 share bonus in the year 19, 1: 3 share bonus in the year 2016, 4.5% of the total equity is through bonus equity.

(2) Equity holding:

4.5 per cent promoters, 7.5 per cent with corporate bodies and 1.50 per cent with trusts, etc. and thus 18.12 per cent shares are available with individual investors with an investment of up to Rs 5 lakh.

(2) Investment of Hindustan Composites in Quoted Equity:

(A) Holds 51.5% stake in Rasoi Ltd., holding 31,31,9 shares.

(B) JL Morrison India Limited has 12.5 per cent or 2,7,8 shares. It has shares worth Rs 4.5 crore at Friday's closing price of Rs 15.

(C) Apart from this, 2.50 per cent holding through 2,4,000 shares of Surdas Trading and Manufacturing, 1.41 per cent holding through 1,4,000 shares of Goodpoint Advisory Services LLP, Lotus Udyog LLP 1,4,50 shares. 1,40,000 shares of Resources Ltd., 1,400,000 shares of Pallavi Trading & Manufacturing Company Ltd., 1,04,000 shares of Exxon Trading, 5,000 shares of Looklink Advisory Services LLP, 5,000 shares of Silver Trading & 2,000 shares of Noble Business Solutions.

(3) Thus, as on September 30, 2020, the company has a non-current asset of Rs. 3.5 crore and a current asset of Rs. 4.5 crore with a total value of Rs. 2.5 crore. The existing paid-up equity shares are valued at Rs 5 per share with the company's investment at Rs 1,3,8,000.

(2) Book value:

2.50 in March 2018, Rs. 3.50 in March 2017, Rs. 205 in March 2016, Rs. 201.13 in March 2017, Rs. 313.5 in March 2017, Rs. 2.5 in March 2020 and investment value per share Rs.2 with Rs.2, expected Rs.20.50 with March 2021 and investment value per share expected Rs.6.50

Financial results:

(1) Full year April 2012 to March 2020:

Net income fell to Rs 19.04 crore from Rs 12.51 crore, while NPM net profit fell by 4.5 per cent to Rs 19.05 crore from Rs 19.05 crore.

(2) Second Quarter July 2020 to September 2020:

Net income rose to Rs 2.31 crore from Rs 4.5 crore, NPM net profit rose 12.5 per cent to Rs 4.5 crore from Rs 4.5 crore and quarterly earnings per share was Rs 2.50. .

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

Out of the expected net income of Rs 15 crore, net profit is expected to be Rs 20.50 crore and earnings per share is expected to be Rs 30.50.

(2) Valuation B:

Even if the company is given a P / E of 7 against the average P / E of the auto ancillary industry, it can fetch a price of Rs.

Thus, (1) a fully debt-free company of the prestigious Rasoi Limited group, (2) a 4.5 per cent equity promoter holding, (3) a 7.5 per cent bonus equity, and (3) a history of buying back shares at 10 per cent above the market price. ) Aishin Seiko, Toyota, Denso and Sumito, two of Japan's leading companies, have launched a new joint venture with a 5 per cent holding, with the company holding 31 per cent non-current assets and current assets of Rs. Crores of Treasuries i.e. Treasury of Rs. 2 per share. (2) The expected earnings per share as on March 2021 is Rs. 20.50 and the expected book value is Rs. 2.50 and if we add the investment value of Rs. 3.50, against which at present Rs. 2 paid-up shares are available at only Rs. 4.5 on NSE, BSE with a P / EA of 11.51.

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 50% 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. (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 personal decisions at personal risk. The writer, editor and anyone else of Gujarat Samachar will not be responsible for your loss. So invest by recognizing the risk of the stock market.