The new week will see Sensex breaking 60777 to 60111

MUMBAI: With the end of the year economists predicting global economic growth to slow down in 2023, the US has surprisingly overtaken the US. Sentiment has been dampened by the Federal Reserve raising interest rates by half a percentage point at its meeting, signaling that it will maintain high interest rate policy next year, and other European countries also raising interest rates. With this, the year 2022 is about to end, the activity of foreign funds in the market is likely to decrease from the next week in the holiday mood of Christmas vacation. Amidst these circumstances, Sensex may break the resistance level of 61911 at 60777 at 60111 and Nifty spot at 18444 at the resistance level of 17911 at 17911. .

Dark Horse : Salzer Electronics Ltd.

BSE (517059), NSE (SALZERELEC), Listed, Rs.10 Paid-up, 1:1 Share Bonus Issuer in 1995, ISO 9001:2008, ISO 14001, OHSAS 18001:2007 Certified, 1985 M/S. Established for the design and manufacturing of world class CAM operated rotary switches in technical collaboration with Saelzer Schaltgerate Fabrik, GmbH, Germany and with a track record of 23 years of continuous profitability and 19 years of continuous dividend payout, Salzer Electronics Limited Load Break Switches, Wiring Ducts, Terminal Connectors, Selector Switches, Ammeter Switches, Voltmeter Switches, DC Disconnectors, Electro Magnetic Relays and Magnetic Wires along with Modular Wiring Accessories and Allied Specialty Products Manufacturing, Marketing through Five Manufacturing Facilities, Exporting through Direct Marketing Network of 40 International Distributors in over 50 Countries is a company that does The company has its own registered patents for rotary switches and has five products under patent process. The company is India's leading manufacturer of rotary switches and provides customized electrical solutions for PV application switches and PVC wiring ducts (channels). Apart from this, the company is the sole manufacturer of NG savers and street light controllers. Sulzer Electronics is the largest supplier of Rotary and Load Break Switches to Indian Railways.

Major Clients: Major clients of the company include CED, Schneider Electrical, Premier Valeo, V-Guard, BHEL, GE, Indian Railways, Alstom, Siemens, ABB, ELGI, LMW, L&T, Pltrons, Sears Seating, C3Controls, YOKOGAWA, NPCL-NUCLEAR POWER CORPORATION OF INDIA has. The company is supplying its products to the large solar industry and railways-Metro and Indian Railways. A company with strong global customer relationships, GE is Schindler's preferred supplier and Nuclear Power Corporation's sole accredited supplier. It is also the largest supplier of rotary and load brake switchgear to Indian Railways.

Share holding pattern: Promoter holding 32.34 per cent (Promoter holding will increase by 6.00 per cent to 38.85 per cent from 32.34 per cent due to allotment of 17,00,000 convertible share warrants), foreign portfolio investors hold 6.00 per cent, HMG Globetrotters have 5.28 percent, NRIs have 4.24 percent. Among the high net worth investors, Tarun Kantilal Vakharia has 1.55 percent, Sharmeen Nasir has 1.16 percent, Zaki Abbas Nasir has 1.53 percent. Corporate bodies hold 5.41 per cent and individual share holders up to Rs 2 lakh hold 37.37 per cent.

Allotment of 17 lakh convertible share warrants to the promoters on preferential basis: As per the decision taken by the board of directors of the company dated 13th December 2022, allotment of 17,00,000 convertible share warrants to the promoters group at a price of Rs.278.50 per share on preferential basis, out of this allotment of Rs. .11,83,71,000 will be collected. The warrants will be eligible to be converted into equity shares within 18 months from the date of allotment. With this, the holding of promoters in the company will increase by 6 percent from 32.34 percent to 38.85 percent.

74.91 percent holding in KC Industries Ltd. worth Rs.23 per share: Sulzer Electronics holds 74.91 percent promoter holding in listed subsidiary KC Industries Ltd. (504084). The promoter holding of 47,546 shares is valued at Rs.36.78 crore at the price of Rs.7736 per share. That means Sulzer has an investment value of Rs.23 per share in this company. While as on March 31, 2022, the company has an investment of Rs.3.10 crore in various mutual funds. Which is worth Rs.1.95 per share. With which the total investment value per share is Rs.25.

Book Value: Book Value Rs.222 in March 2022, expected to be Rs.250 in March 2023

Financial Result:

(1) Full year April 2021 to March 2022 : Net income increased to Rs.806.01 crore from Rs.627.93 crore Net profit increased to Rs.24.20 crore from Rs.21.38 crore from NPM three percent Earnings-EPS per share has increased from Rs.12.93 to Rs.14.14.

(2) First half April 2022 to September 2022 : Net income increased by 38.38 percent to Rs.490 crore from Rs.353.75 crore, NPM increased by 4.02 percent to Rs.19 from Rs.12.14 crore. 70 crores and reported a half-year earnings per share-EPS of Rs.11.77 from Rs.7.41.

(3) Expected second half October 2022 to March 2023 : Expected net income at 30% growth Rs.588 crore Net profit at 4.15% NPM at Rs.24.40 crore Expected half-year earnings per share-EPS at Rs.15.27 is expected.

(4) Expected Full Year April 2022 to March 2023 : Expected Net Income Rs.1078 Crore NPM-Net Profit Margin 4.09 Percent Net Profit Rs.44.10 Crore Earnings Per Share-EPS Rs.27.04 Expected is

(5) Valuation : B :

Given the company's P/E of 14 against the industry average P/E of 60, Sulzer Electronics Ltd., the stock could reach Rs.378 on expected earnings, though considering the current market conditions, valuation single B . Investors should also keep a stop loss of 15 to 20 percent as per their risk-taking ability on investing in the stock. The stock is currently trading at Rs. Price of .248.80 is available at P/E of 9.20.