Sensex will hit between 73888 to 72111 in the new week

Mumbai: US Despite a clear indication in the minutes of the recent meetings of the Federal Reserve and the Reserve Bank of India that inflation-adjusted interest rates are unlikely to be cut in the short to medium term, IT chip manufacturing giant Nvidia Corp's results on the global front and the company's strong business outlook in the new era of AI kept Indian markets in line with global markets. Stock markets have extended a record bullish streak at the end of a two-sided rout. Although the market sentiment remains positive, the number of stocks and scrips participating in the bull market has started to decrease, which clearly shows that funds, investors have become cautious in their selection of stocks. As many stocks are trading at overvaluation, these stocks are seeing profit booking on the one hand. While other choices still offer attractive valuations, the fund's investment in stocks continues to be attractive. On the global front, China is trying to stabilize its economy and markets by taking Yenken-style measures. But still a crisis of confidence has seen global funds flock to markets in Japan and Europe. Funds have also been bullish in US markets as jobless claims in the US continue to fall. Next week is likely to show two-way volatility with market consolidation amid continued global market watch and preparation for Lok Sabha elections in India. Sensex can be seen hovering between 73888 and 72111 and Nifty spot between 22444 and 21888 in the new week amidst attraction in elite stocks.

Arjun's Eye : Huhtamaki India Ltd.

BSE (509820), NSE (HUHTAMAKI), Rs.2 paid-up, 67.73 per cent promoter holding by Finnish multinational HUHTAMAKI, Indian subsidiary HUHTAMAKI INDIA LTD. in existence since 1935 Innovative offerings from packaging converter through blueloop technology The company is moving towards providing sustainable packaging solutions and moving forward with a vision to become the first choice of customers in sustainable packaging solutions by 2030. (Certified for Environmental Management, ISO 9001:2015, ISO 14001:2015 & OHSAS 18001:2007, ISO 45001:2018 Certified, the company has completed the installation of Blueloop assets at Silvassa in the fourth quarter of calendar year 2023. These products are sustainable and affordable. The company is part of Finland-based global food packaging giant Huttamaki OYJ, a leader in providing primary consumer packaging and decorative labeling solutions in India.

Consolidation of manufacturing facilities: The company has consolidated five manufacturing sites in calendar year 2023. So the manufacturing sites have reduced from 15 to 10 sites as of December 2023. Manufacturing facilities have been shifted keeping in view the changing market dynamics, customers and cost effectiveness benefits. With 10 manufacturing sites across the country, the company has strengthened Potha's capabilities and leadership in labeling solutions by acquiring Webtech Labels Pvt Ltd and Positive Packaging Industries Ltd and merging with itself as well as the Indian operations of Mohan Mutha Polytech Pvt Ltd and Ajanta Labels.

Segments and Industries: The company provides its products, packaging solutions covering food packaging, healthcare, personal and home care, labels, pet food, tube laminates and other specialty segment industries. In which food packaging includes biscuits, juices, ice cream, confectionery, soups, sausages, cereals, ready mills, dairy and baby food. While beverages include coffee, juices, non-alcoholic drinks, powdered beverages and nutrition drinks, teas, liqueurs and cocktails. Healthcare includes liquids, balms, creams, gels or dermatology medical devices transdermal patches and wound dressings solids and powdery products. Personal and home care includes shops, shampoos, creams, toothpaste, cosmetics, beauty care products. Labels include food, beverage, personal and home care, healthcare, pharmaceuticals. While pet food includes dry pet food, wet pet food. While tube laminates include beauty care, oral care, others. Other specialties include digital printing solutions, engraved cylinders, promotions and security specialized pouches, thermoforms, other non-food.

Major Customers: Huttamäki Finland MNC Packaging Group has presence in 70 countries across five continents with Indian units accounting for 27.65 percent of total turnover in exports. The company is leading the premium segment of packaging offering. Major clients of the company include Britannia, Cadbury, Castrol, Cola Cola, Dabur, Emami, EverReddy, GlaxoSmithKline, Godrej, Unilever, ITC, Marico, Nestlé, Pepsi, Perfetti, P&G, Tata Tea, TTK-LIG, Wipro, Colgate Palmolive. , Glaxo etc.

Book value: December 2021 Rs.94, December 2022 Rs.100, December 2023 Rs.154, expected December 2024 Rs.176, expected December 2025 Rs.200

Bonus history: 1:4 share in 1987, 1:2 share bonus in 1993. Also has 10 percent bonus equity in the total equity.

Financial Results : (Financial year ending December)

(1) Full year January 2022 to December 2022 : Net income increased by 13.85 percent to Rs.3000 crore and net profit margin-NPM from 16.54 percent to Rs.2.27 crore in the previous year, net profit to Rs.49. 64 crores and achieved an EPS of Rs.6.57 per share (previous year negative EPS of Rs.3).

(2) Full year January 2023 to December 2023 : Net income decreased by 14.35% to Rs.2565 crores, NPM increased by 4.87% to Rs.125 crores, net profit increased by 152% to Rs.125 crores, Earnings per share - EPS achieved by Rs.16.27 (which is exclusive of extraordinary other income.) With extraordinary other income the income has been Rs.2565 crores. The company got an extraordinary other income of Rs.370 crore by selling its Thane plant in 2023. Taking into account the extraordinary profit, the net profit comes to Rs.409.63 crore and with this extraordinary profit, the full year earnings per share-EPS comes to Rs.54.24.

(3) Expected Full Year January 2024 to December 2024 : In this 75th year of the company expected net income of Rs.2763 crore expected NPM at 6 percent expected net profit of Rs.166 crore expected full year EPS of Rs.22.

(4) Expected Full Year January 2025 to December 2025 : Expected Net Income Rs.3000 Crore Expected NPM 6.06 Percent Net Profit Rs.185 Crore Expected Earnings-EPS Rs.24.50 Expected.

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) 67.73 percent Huttamaki Finland promoted MNC company (3) Consolidation of manufacturing footprints-sites reduced from 15 to 10 sites and Blueloop despite decline in revenue. Earnings growth by providing innovative sustainable packaging solutions through technology (4) Earnings of Rs.370 crore extraordinary from sale of Thane plant in 2023 and achieving earnings per share of Rs.54.24 (5) Expected earnings per share in full year 2025 -EPS Rs.24.50 and expected book value Rs.200 against Rs.2 paid-up share 23 on BSE, Feb 2024 price of Rs.349.55 (Rs.347 on NSE) industry average P/E of only 14 against 27 A P/E of .30 is available.