The Sensex will hit between 53444 and 52444 in the new week

(Gujarat News Correspondent) MUMBAI: The country was rapidly unlocking after the completion of the second wave of Corona transition, with Indian stock markets also booming in the coming days amid a resurgence of economic activity amid cautious maneuvers in the wake of the third wave of worries and vigilance. May occur in the correction zone. Despite the overall good progress of the monsoon against the rising risk factor of inflation, the funds have eased their bullish trade by hitting a record high in the last week. With the end of the long-awaited bullishness beginning last week, the boom in stocks of companies without tailed fundamentals has begun to subside. By managing the index while keeping the Sensex-Nifty high, funds, players, large investors are easing the overbought position with profit booking in small, mid cap stocks. It is also clear that the funds have started shifting portfolios. So in the coming days, it is possible that a major correction may be seen following the exit of funds from stocks that have multiplied many times over. So that care is taken not to get stuck in the stocks of companies without fundamentals i.e. with weak fundamentals. Next week, the market will look at the US dollar against the rupee, along with India's May 30 infrastructure production figures for June and the manufacturing PMI for June 1, July 1, 2021, as well as rising international crude oil prices. On the international front, the United States will look at global markets with bond yields and the steps being taken by various countries to curb inflation. Among these factors, the next week is likely to see the Sensex hit between 7 and 8 and the Nifty spot hit between 19013 and 1917.

Dark Horse: FDC LTD.

Listed on BSE (215), NSE (FDC), Rs. 1 paid-up, fully debt-free, holding 7.5 per cent promoter holding, having 3.17 per cent bonus equity in total equity through 1: 1 share bonus in 2008 and Investor Friendly Ft. ) Is a fully integrated pharma company leading in the manufacturing, marketing of Oral Rehydration Salts (ORS, Electrical Powder) and Ophthalmics. The company also has multi-location facilities for manufacturing in globally recognized, active pharmaceutical ingredients (APIs) as well as finished dosage forms. With Research and Development (R&D) these facilities are available at Roha, Waluj and Sinnar in Maharashtra, Varna in Goa and Badi in Himachal Pradesh.

(A) After giving 1: 1 bonus in the year 2009, the buyback of 2,8,31,018 shares with high premium six times together:

Investor-shareholder friendly FDC Limited has given a 1: 1 share bonus in the year 2006. The market price of the company's shares has been higher from time to time at a premium higher than the market price by announcing the buyback of the shares six times during the years 2006-07 to 2020-21. Has a history of buying back 2,81,018 shares. Out of which, the share price was Rs. 9 at the date of announcement of buyback on August 8, 2009, while the buyback of 21,7,8 shares at the price of Rs. 20 per share was Rs. 107.5 at the date of announcement of buyback on January 30, 2011. Buyback of 2,8,105 shares at Rs. 18 per share, after the announced buyback on May 31, 2016, the share price was Rs. 31.3, when the buyback of 20,8,8 shares at Rs. 110 per share, February 8 The share price was Rs 71.05 on the date after the announcement of the buyback in 2013, when the buyback of 4,50,000 shares at the price of Rs 60 per share, against the share price of Rs 150.0 on the date after the buyback on May 31, 2017 was announced. The buyback of 4,50,000 shares at Rs 50 per share, the share price was Rs 30.5 on the date after the announcement of the buyback on August 8, 2020, when the buyback of 21,8,000 shares at Rs 50 per share, a total of 7 so far. , Has a track record of paying high returns to shareholders at a high premium every time a buyback of 2,81,018 stocks.

(B) Decrease in paid-up equity, increase in promoters' holdings: Promoters on the way to increase their holdings almost every year to 5%:

The promoters of the company seem to be on track to increase their holdings to almost 3 per cent of the SEBI limit almost every year. So the company's paid-up equity is declining and the promoters' holdings are increasing. Promoters' holdings rose from 7.8 per cent in March 2009 to 8.04 per cent in 2009, 7.5 per cent in 2010, 7.5 per cent in 2011, 4.5 per cent in 2012 and 4.50 per cent in 2012. It has increased from 7.5 per cent in 2016 to 8.04 per cent in 2016, from 2.02 per cent in 2016 to 4.5 per cent in 2020 and to 7.5 per cent in March 2021.

(C) Share holding pattern:

Promoter promoter Chandavarkar Family has a holding of 7.5 per cent, mutual funds have a hold of 4.5 per cent, Nippon Life India Trustee has a hold of 7.5 per cent, foreign portfolio investors have a hold of 1.4 per cent, Fidelity Puritan Trust has a hold of 1.7 per cent and Bengal Investment Pvt Ltd has a holding of 1.04 per cent and corporate bodies have a holding of 2.08 per cent. Individual shareholders with up to Rs 3 lakh have 2.31 per cent holdings.

(D) Financial investment value of Rs.5 per share:

As on March 31, 2020, the company has a total investment of Rs 4.5 crore, including Rs 21.5 crore in mutual fund units and Rs 2.09 crore in non-convertible debentures. According to the company's equity, the investment value per share is Rs.

(E) Purchase of land in Mumbai for Rs. 31 crore:

FDC Limited purchased 3 square meters of land in Jogeshwari-West, a suburb of Mumbai, in 2015 for Rs 21 crore. Which we do not have an assessment of today.

(F) Financial Investment Value and Real Estate Investment Value Rs.

Financial investment value is Rs.2 + real estate investment value is Rs.12 plus the total investment value is Rs.2.

(G) Listed on the stock exchange as a public limited company in the year 19, FDC Limited now has accreditations from US-FDA, UK-MHRA, MCC-RSA and UAE. The company is a preferred supplier to global customers, including non-profit organizations such as UNICEF, IDA, MSF and PSI. The company's facility has been audited more than 30 times by regulatory authorities, including the USFDA, UK-MHRA, SA-MCC and Envisa (Brazil), since the first inspection by the USFDA in the 19th year. The facilities of the company have been approved by this authority every time. FDC is the first company in Southeast Asia to offer ophthalmic formulations using blow-fill-seal (BFS) technology.

(H) Export of more than 200 products to more than 50 countries:

FDC sells more than 200 products in India and exports to more than 50 countries, including the United States, the United Kingdom, South Africa, and Japan. The company has been the world's leading manufacturer of ORS for over 15 years and has been a leader in the manufacture of specialized formulations. The company also has anti-infectives, gastrointestinal tracts, ophthalmic chemicals, vitamins / minerals / dietary supplements, cardiac, anti-diabetic, respiratory, gynecological, dermatology and analgesics in the therapeutic segment. FDC's Zifi, Electral, Energel, Vitcofol, Pyrimon, Zocon, Zoxan, Zethrin, Zipod, Zefu, Kotarail and Mycordum are the leading brands in the respective segments in India.

(I) Subsidiaries in developed countries such as the United States, the United Kingdom, and South Africa:

(1) FDC Inc., a 100% wholly owned subsidiary. Is USA. (1) 100% wholly owned subsidiary of FDC International Ltd. and FDC Pharma, United Kingdom (established in 2002). Southampton-UK The subsidiary has its own CGMP warehouse in the UK. It has cold storage facility for temperature controlled sterile ophthalmic products with 100 palettes and in addition to marketing of generics, FDC International also supplies a wide range of ophthalmic products to the livestock pharma marketing companies. (2) FDC SA (PTY) Limited, a subsidiary of 5% holding of the company, South Africa was a 5% holding company of FDC Limited, a joint venture company established in the year 2007, in which Pharma Q Holdings Pvt. Ltd. After acquiring an additional 1,4,000 shares in a secondary acquisition from FDC, it has now become a FDC SA company with effect from July 4, 2020. Which specializes in the sale of pharmaceutical products in South Africa and other African countries.

(J) Bonus:

1: 1 share bonus in the year 2009

(K) Book Value:

Rs.105.5 as on March 2021, expected Rs.12 (as per Rs. 1 paid-up) + Rs.2 per share with expected investment value Rs.

(L) Financial Outcome:

(1) Full year April 2020 to March 2021:

Net income fell to Rs 16.50 crore from Rs 19.15 crore, net profit rose 20 per cent to Rs 301.17 crore from NPM 30.50 per cent to Rs 301.15 crore, and earnings per share stood at Rs 19. 4 to Rs. 13.5.

(2) Expected full year April 2021 to March 303:

Net profit is expected to be Rs 4 crore out of the expected net income of Rs 15 crore and earnings per share-EPS is expected to be Rs 30.5.

(M) Valuation: B:

An investor friendly company should get a P / E of 3 against the average P / E of 3 in the pharma industry, according to which the valuation is single B to raise Rs.500.

Thus (1) 2.7 per cent of the promoters holding, (2) 2.19 per cent of the total equity with bonus equity (3) Six times the market price from 2008 to 2021, a premium higher than the market price, a total buyback of 2.8 crore shares and dividends, dividends. Investor friendly company with a habit of distributing profits to shareholders through (2) Electrol Powder, Oral Rehydration Salts, a brand prevalent in 90% of India's households (3) Active Pharma Ingredients (API) Sales in India, exports to more than 30 countries (2) In the full year 2020-21, net profit increased by 3% to Rs. 201.13 crore, earnings per share increased from Rs. 12.5 to Rs. 12.5, book value Rs. Achieved (2) Expected earnings per share in the expected full year 2021-2 is Rs. 20.5 and expected book value is Rs. 18 + Rs. 2 per share with an investment value of Rs. 15 against the expected Rs. , P / EA of Rs 12.50 is available on NSE against the expected earnings of Rs 61.50.

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 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. (2) Feedback e-mail: The answers given in arjuneyems@gmail.com.