The new week will see Sensex breaking 56977 to 56377

MUMBAI: The end of the financial year 2022-23 has been a turbulent one for global markets as a new banking crisis looms. The loopholes in the banking system of America and European countries have shaken people's confidence. News of one disaster after another for the global economy Volatility in the global markets is increasing at present. After the banking crisis, the US attack on Syria and the rapprochement of China and Russia with the US, the possibility of escalating geopolitical tensions in Europe and the possibility of more banks in European countries, financial giants in trouble and reports of more bank collapses in the US, led to a retreat in Indian markets again last week with global markets. have seen In which the government has increased the Securities Transaction Tax (STT) on F&O and has shaken the sentiment in the last days of the financial year. Despite the possibility that the next financial year 2023-24 will be challenging among these factors, in the event that the crisis of America and Europe does not spread to Asia, the investment attractiveness of foreign funds will increase again in the Indian markets in the coming days. So, in the early days of the new financial year, after the correction, the boom can be seen again. In which case there will be a good opportunity to invest in the stocks of companies with good fundamentals in the correction. The end of the March trend and the end of the financial year 2022-23 in the next week will be more likely to increase the cornering of funds into good stocks with a big crash. Along with this, Sensex can be seen breaking 56977 at the resistance level of 58377 and 56377 and Nifty spot breaking 16777 at 16577 at the resistance level of 17111.

In Arjuna's eyes:

SHARDA MOTOR INDUSTRIES LTD.

BSE (535602), NSE (SHARDA MOTOR) Listed, Rs.2 paid-up, fully debt-free, established in the year 1986, IATF16949 : 2016 Certified, Dun & Brad Street 5A 1 Rating, 73.20 percent holding of the promoters of Relan Group , SHARDA MOTOR INDUSTRIES LTD. is one of the leading auto-ancillary companies in the field of manufacturing and SCML and procurement of exhaust systems, suspension systems with latest techniques, design, equipment and modern manufacturing facilities in the automotive industry. The company has 9 manufacturing plants and one research and development center, three sales offices in seven locations in four states in India including Sanand, Pune, Nashik, Chennai, Haridwar. Constantly developing new products with state-of-the-art manufacturing facilities and focusing on innovation and technology upgradation, Sarada Motors focuses on research and development of exhaust systems, catalytic converters, independent suspensions, seat frames, seat covers (two wheelers and four wheelers), soft top canopies and pressed Parts is a market leader in the manufacturing of white goods products. Among its products the company supplies exhaust systems, suspension systems for use in passenger vehicles, commercial vehicles, tractors, generators. While in SCM-Supply Chain Management and Procurement, the company provides complete supply chain facility from sub suppliers to OEMs. Along with this the company has its own two tube mills and three stamping plants in full backward integration. The company has 30 percent market share in India for exhaust systems and 10 percent share in suspension. The company has set up a joint venture with Kinetic Green India to manufacture lithium batteries. The electric vehicle market in India is estimated to reach Rs.50,000 crore by 2025. So opportunities in this sector are expected to increase.

Subsidiaries, Joint Ventures: The Company has its various subsidiaries, holdings, associates, joint ventures. In which (1) UDDIPT MOBILITY INDIA PVT LTD. 74 percent holding (2) EXHAUST TECHNOLOGY PVT LTD. 50 percent holding (3) RELAN INDUSTRIAL FINANCE PVT LTD. 47.12 percent is of holding.

Strategic partnership units: The company has three strategic partnership units including (1)PUREM (earlier known as Eberspcher) GERMANY for exhaust systems (2)Kinetic Green for EV batteries, India lithium batteries (3)Bestop Inc USA for roof systems.

Investment Rs.104 Crore: Cash of Rs.588 Crore: The company has a total investment of Rs.104 crore including investment of Rs.48 crore in non-listed subsidiary joint venture and investment of Rs.56 crore in mutual funds.

In the company's fiscal year 2023 nine-month earnings conference call, CEO Asim Relan said on February 3, 2023, (1) The company has more than Rs.588 crore as on December 31, 2022, including cash and cash equivalent investments and bank balances. (2) The Company will sell the Noida Property Plant in due course. (3) The Company will consider appropriate deals, mergers, takeovers and acquisitions when opportune and maintain good returns to the Company's shareholders.

Major Clients: Major clients of the company include Mahindra, Tata, Cummins, Tefe, Magna, SML Isuzu, Nissan, Escorts, Mann, Isuzu, Force Motors, Ashok Leyland, Kubota among others.

Share holding pattern: Relan Group holds 73.20 percent promoters holding, Foreign Portfolio Investors hold 0.77 percent, Vibgyor Investors and Developers Pvt. Ltd. has 1.18 per cent, Brahm Aranja has 1.02 per cent and individual share capital holders up to Rs 2 lakh have 14.25 per cent.

Book Value: Rs.192.70 as of March 2022, expected to be Rs.259.81 as of March 2023

Financial results:

(1) Full year April 2021 to March 2022 : Consolidated net income increased by 30 percent to Rs.2,285 crore, net profit margin-NPM from 7.2 percent, net profit increased by 123 percent to Rs.149 crore, Earnings per share (EPS) of Rs. .50.19 achieved.

(2) Nine months April 2022 to December 2022 : Nine monthly net income increased by 23 percent to Rs.2039.80 crore and net profit margin-NPM increased by 7.2 percent to Rs.146.75 crore and nine monthly earnings per share- EPS has achieved Rs.49.20.

(3) Expected fourth quarter January 2023 to March 2023 : Expected net income growth of 15 percent to Rs.719.87 crore, net profit margin to 7.4 percent, net profit to Rs.53.27 crore, quarterly earnings per share of Rs.17. 91 is expected.

(4) Expected full year April 2022 to March 2023 : Expected net income of Rs.2759.67 crores, net profit of Rs.199.53 crores from NPM of 7.3% and earnings per share of Rs.67.11 expected.

Thus (1) The author has no investment in shares of the above company. Authors may have direct or indirect personal vested interests in research sources. Consult a qualified certified financial-investment advisor before making any investment decision. The author, Gujarat News or any other person shall not be responsible for any possible loss on investment. (2) Expected full year April 2022 to March 2023 earnings per share Rs.67.11 and expected book value of Rs.259.81 against Rs.2 paid-up share Price of Rs.580.60 on NSE, BSE Industry Average 30 Available at a P/E of just 8.65 against a P/E of .49.