Budget week will see Sensex close above 71444 at 72111

Sensex 69666 support and Nifty 21055 support level

Mumbai: As the GDP-economic growth figures of the US for the quarter ending December 2023 are overall good, record bullishness is seen in the US markets. Global markets strengthened over the weekend amid easing inflation and expectations of a rate cut and the possibility of a reversal of interest rate cuts. While corporate results in the Indian stock markets followed by continued massive sell-off in stocks by Foreign Portfolio Investors-FPIs in the last week has seen caution in higher-head stocks. However, due to continuous buying by local funds, institutional investors, the market is seeing a major decline. Along with this, with budget fever now in the midst of the turmoil of the Lok Sabha elections, the market is currently showing a two-way swing movement in the zone of consolidation with correction since last week. As usual, F&O call-options have fooled traders-gamblers in January.

Amid speculations of budget provisions, the market is likely to witness an index-based crash amid expected caution at the start of next week as the Union Budget is scheduled to be presented on Thursday, February 1. As this budget is a vote-on account in the run-up to the Lok Sabha polls, there will not be a major provision announced, but hinting at a populist budget provision, Finance Minister Nirmala Sitharaman is likely to announce provisions that will please all sections, reviving market sentiments and paving the way for fresh post-Budget bullish records. Don't be surprised if you give. Of course, as it takes time to understand some important provisions along with budget week and speculations of provisions, as always, it will be necessary to be very careful in trading stocks during the budget week. At present 70 percent of the stocks in the market are over valued, i.e. valuation has become expensive, so now instead of giving preference to the sector, the remaining Among the 30 percent stocks, it will be imperative to focus on investing in stocks with attractive valuations. In the budget week, Sensex may close above 71444 at 69666 support level at 72111 and Nifty spot at 210555 support at 21777 at 21555.

Arjun's Eyes : INVESTMENT & PRECISION CASTINGS LTD.

BSE (504786) listed only, Rs.10 paid-up, having NBCL Certification as per ISO 14001:2004 & 18001:2007, ISO/TS 16949 & ISO 9000, ISO/IEC 17025:2017 criteria, INVESTMENT & PRECISION CASTINGS LIMITED (INVESTMENT & PRECISION CASTINGS LIMITED-IPCL), a leading company in investment casting business in India, established since 1975, having 93 percent bonus equity in total equity through three bonus share issues, established business under technical collaboration with Arwood International, USA. In the year 1983, the company M/s. After entering into technical collaboration agreement with Furstlich Hohenzollernsche Huttenverwaltung, (Zollern Group), Germany in the year 1987 M/s of Japan. Associated Foundries Engineering Co. Ltd., Japan entered into a technical license agreement for the manufacture of very large weight investment castings.

According to a statement from the company chairman, the company has developed highly complex thin-walled aluminum castings, which are used in the radar system of India's indigenously developed fighter plane Tejas. In addition, the company has set up a vacuum investment castings facility to boost its technology leadership in India, with applications in the aerospace and automotive industries as well as orthopedics.

Company Products and Facilities:

The company has three plant-manufacturing facilities located at Bhavnagar in Gujarat. In which the first plant in automotive has a capacity of 1560 tons per annum, the second plant has a capacity of 1200 tons per annum, the third plant has a capacity of 60 tons per annum for aerospace and defense. The company has the processing capability of 10 grams to 200 kilograms and sizes up to 750 mm and minimum thin walled castings of 2 mm. Along with this, the company has the processing capacity to supply large weight castings of less than 50 pieces or more than 10 lakh pieces of castings annually for automotive applications. The company has products for Automotive, Aerospace, Turbochargers-For Diesel Engines, Power Plants, Pumps & Valves, Medical Implants, Electrical & Instrumentation, General Engineering, Electronics, Compressors, Artisan Castings, Machined Components Barstock. Company Automotive, Agricultural Machinery, Construction Equipment, Electric Power Generation Equipment, Food and Dairy Equipment, Hand Tools, Pneumatic-Hydraulic Equipment, Machine Tools, Mining Equipment, Printing Machinery, Packaging Machinery, Paper Processing Machinery, Oil Field Equipment, Electric Switchgear, Quality focused companies have customers in the wide range of industries like Textile Machinery, Railways, Pumps & Valves etc.

Bonus history: 1:1 share in 1998, 1:1 share in 2004 and 3:1 share bonus in 2006

Share holding pattern: Promoters Tamboli family holds 51.91 percent, high net worth investor Rekha Nimish Shah holds 10 percent, corporate bodies hold 1.35 percent and individual shareholders up to Rs.2 lakh hold 30.67 percent.

Book Value: Rs.147 in March 2021, Rs.146 in March 2022, Rs.157 in March 2023, Expected Rs.182 in March 2024, Expected Rs.211 in March 2025

Financial Results:

(1) Full year April 2022 to March 2023 : Net income increased by 28 percent to Rs.170.57 crore Net Profit Margin-NPM from 3.30 percent Net profit to Rs.18 lakh increased by 3150 percent to Rs.5.56 crore Earnings per share-EPS rose to Rs.11.12 from Rs.0.36.

(2) First half April 2023 to September 2023 : Net income increased by 9.65 percent to Rs.91.77 crore, NPM increased by 6.31 percent, net profit increased by 690 percent to Rs.5.79 crore and earnings per share was Rs.11. 57 has been achieved.

(3) Expected second half October 2023 to March 2024 : Expected net income of Rs.95 crores from NPM 7% net profit of Rs.6.65 crores and earnings per share expected to be Rs.13.13.

(4) Expected full year April 2023 to March 2024 : Earnings per share expected to be Rs.25 with expected net income of Rs.187 crores and expected net profit of Rs.12.50 crores.

(5) Expected Full Year April 2024 to March 2025 : Expected Net Income Rs.205 Crore Earning Expected Net Profit Rs.14.50 Crore Expected Earnings-EPS Rs.29 per share.

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. The author, Gujarat Samachar or any other person shall not be responsible for any possible loss on investment.(1) Having 51.91 percent promoter holding (2) Having 93 percent bonus equity in total equity through three bonus share issues (3) Automobile, Defense & Manufactures casting-forging products for other industries (4) Rekha Nimish Shah owns 10% public shareholding (5) Expected full year April 2024 to March 2025 Expected Earnings per Share-EPS Rs.29 and Expected Book Value Rs.211 Shares now (As of January 25, 2024) Group XT (Periodic Call Auction) on BSE only has a P/E of 20.62 available at a price of Rs.597.50 against Casting & Forging industry average P/E of 38. The company should have a P/E of 30.