Sensex will see 67333 to close above 66666

Mumbai: On the global front, the re-inflation-inflation factor has alerted the central banks of various countries and now they are thinking of raising interest rates again. The US Although the Federal Reserve kept interest rates unchanged last week, it has warned that the situation is not yet favorable, indicating that one more increase of 0.25 percent is possible this year and that it will cut interest rates by half a percent instead of one percent in 2024. With the effect of which China is trying to bring the economy back on track by taking stimulus measures upon stimulus. But despite this, the situation of instability with uncertainty is still permanent. Stock markets at home followed a historic rally following an expected major correction after the G-20 meeting. Funds, analysts have flagged overvaluation following a wild rally in small, mid-cap companies-stocks, forcing players and investors to shed overbought positions in several stocks. Large gaps have been seen in many stocks. While small, mid-cap Fox funds are now seen shifting some funds towards large-cap stocks. This changing tide has now led to an inevitable correction in the market. Sensex has seen a decline of 1700 points and Nifty more than 475 points. Of course after this correction now the market may show a reactionary improvement. But with the September trend coming to an end in Futures and Options (F&O) markets next week, the index-based market could see a major upheaval and show moves that would make loose ends for players at both ends. Currently in the correction zone, there are still selected stocks with good fundamentals available in the market and it is imperative to invest piecemeal in these stocks. The new week could see the Sensex close above 66666 on the support level of 65333 at 67333 and the Nifty spot on the support level of 19488 to close above 19888 at 20088.

Arjun's Eye : INTERNATIONAL CONVEYORS LTD.

BSE (509709), NSE (INTLCONV), Rs.1 paid-up, 1,95,37,595 shares in six years from 2017 to 2023 through open market purchase and buyback, increasing 33.26 percent holding to 70.65 percent promoter holding. The issuer, holding 67.77 percent bonus equity in total equity through three bonus share issues, INTERNATIONAL CONVEYORS LTD., a company active in manufacturing and marketing of Solid Fabric Reinforced PVC Impregnated and PVC Covered Fire Retardant, Anti Static Conveyor Belting in India since 1978. is The company is currently the second largest manufacturer of PVC solid woven belting in the world and exports more than 90 percent of its production value. Along with this, the company is listed in India with a domestic market share of 40 percent.

Buyback of shares:

In September 2022, the company decided to buy back 39,60,000 shares from the open market at a price of Rs.75 per share, against which the company could buy back 41,21,000 shares at a price of Rs.56.10 per share.

Share Holding Pattern:

Promoters Dabare Wala family holds 70.65 percent holding

Share Split:

In the year 2009, the company split Rs.10 paid-up shares into Rs.1 paid-up shares.

Capital Structure:

Due to buyback of shares, the paid-up equity capital of the company decreased from Rs.6.75 crore to Rs.6.59 crore in March 2022. Now it has further reduced to Rs.6.34 crore.

Promoters Holding:

In the year March 2017, 2,52,344 shares were 37.39 percent. Which at the end of March 2018 increased to 2,85,47,078 shares 42.29 percent, at the end of March 2019 increased to 3,19,19,254 shares 47.29 percent, at the end of March 2020 increased to 49.74 percent of 3,35,73,152 shares. , 61.74 percent of 4,16,73,152 shares at the end of March 2021, 65.97 percent of 4,45,28,951 shares at the end of March 2022, 70.65 percent of 4,47,75,939 shares at the end of June 2023 percent has happened. Thus, the company increased its holding from 37.29 percent to 42.29 percent by buying five percent shares from the open market in 2017-18. While five percent was bought in the year 2018-19. In the year 2019-20, 2.45 percent shares were bought. It increased by 12 percent from 49.74 percent in 2020-21 to 61.74 percent and in 2021-22, 4.23 percent holding was purchased from the open market to 65.97 percent. In this way, in the last six years, the promoters have increased their holding by 33.26 percent by buying 1,95,37,595 shares from the open market at the market price and through buyback.

Bonus History:

1:1 share in 1994, 1:1 share in 1996, 1:1 share bonus in 2009

Dividend: 5% in 2019, 20% in 2020, 100% in 2021, 100% in 2022, 110% in 2023

Book Value: Rs.32.60 as of March 2023 and expected Rs.42.35 as of March 2024

Rs.14.85 per share Investment Value:

As on March 31, 2023, the company has an investment of Rs.63 crores, which has a market value of Rs.94.14 crores as on March 31, 2023, the investment value per equity share of the company is Rs.14.85.

Consolidated Financial Results:

(1) Full year April 2022 to March 2023 : Net income increased to Rs.229 crore from Rs.218.71 crore Net profit margin-NPM increased from 12.54 percent to Rs.28 crore from Rs.16.18 crore. 72 crores, the earnings per share increased from Rs.2.40 to Rs.4.28.

(2) First quarter April 2023 to June 2023 : Net income increased to Rs.57 crore from Rs.55.88 crore, net profit margin-NPM increased from 24.75 percent to Rs.14 from Rs.6.98 crore. 11 crores, the quarterly income per share has increased from Rs.1.03 to Rs.2.21.

(3) Expected Full Year April 2023 to March 2024 : Expected Net Income Rs.250 Crore Net Profit Margin-NPM 24.75% Net Profit Rs.61.85 Crore Expected Earnings Per Share-EPS Rs.9.75 .

Thus (1) The author has no investment in the shares of the above company. Authors may have direct or indirect personal vested interests in research sources. CONSULT A QUALIFIED INVESTMENT FINANCIAL ADVISOR BEFORE MAKING ANY INVESTMENT DECISION. Author, Gujarat Samachar or any other person shall not be responsible for any possible loss on investment.(2) Promoters Dabare Wala family holding 70.65% holding increased to 33.26% through purchase and buyback of shares from open market in last six years (3). (4) International Conveyors Limited with 67.77 per cent bonus equity in total equity through three bonus issues 22 Rs.1 paid-up shares against its expected 2023-24 EPS of Rs.9.75 and expected book value of Rs.42.35, A P/E of only 8.35 is available at Friday September 2023 price of Rs.81.41 on BSE (Rs.81.50 on NSE).