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Bikaji Foods acquires Hanuman Agrofood

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The recently listed company Bikaji Foods International Ltd is making news for good reasons. Stock was 4% up on the Wednesday after strong second quarter performance and acquisition of Hanuman Agrofoods. The ethnic snacks player Bikaji Foods got listed with 8% on 322.80 in the month of November. Since then it has given more than 30% returns to shareholders who continued to hold the shares from IPOs. Bikaji Foods made high of 415.35 on 7th December 2022 after the stellar Q2 performance. Market cap of Bikaji reached Rs 10290 Crores after this price movement. Net Profit grew by 43.2%, Revenue grew by 32%, EBITDA margin came 11.4% thanks to softening of raw materials prices. Many categories showed double digit growth. Valuations wise Bikaji Foods International Ltd shares are now very expensive as compared to other FMCG players. In the separate filing with the exchanges, company announced that it will exercise the ‘right of conversion’ of preferential shares of Hanuman Agrofoods into equity shares. Under this 28,13,050 compulsory convertible cumulative preference shares will be converted into equity shares making Hanuman Agrofood Pvt Ltd. a Subsidiary of Bikaji International Foods Ltd. Bikaji Foods shares have given tremendous returns to investors and it is very expensive share now. New entry is not recommended at these levels. Due to upcoming Christmas and New year season we may see good demand in Snacks business. Company will continue to perform good in the coming quarters. We can wait for the sizeable correction in the stock to make fresh entry. Those who have shares of Bikaji can book partial profit and hold the remaining shares. Disclaimer: Stocksbaazigar Mr. Deepak Doddamani is not a SEBI registered advisor. He is NSE’s Certified Investment Analysis Professional, NSE’s Certified Marketing Professional Level – 4, AMFI registered Mutal Funds distributor and Authorized Person with IIFL Securities Ltd. This post is for educational purpose and Stocksbaazigar is not responsible for any Profit/Loss of reader. Please consult your financial advisor before taking any investment decision.

J K Paper acquires HPPL and SPPL

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Stock of JK Paper was 4% up on Tuesday morning and made high of 436. It closed near 415.20 after the profit-booking by traders. This intraday rally in stock was a response to the news that came on Monday evening about J K Paper’s acquisition of HPPL and SPPL. Here is the full story. On Monday, in the filing with SEBI, J K Paper said that it is acquiring Mumbai based Horizon Packs Pvt Ltd and Uttarakhand based Securipax Packaging Pvt Ltd. 85% acquisition will take place immediately and remaining 15% will take place over 3 years duration. J K Paper has entered in separate Share Purchase and Shareholder’s Agreements with both the companies. Accordingly it informed that the purchase consideration of for acquisition of 85% equity shares of HPPL will be Rs 19.33 per equity share of 10 Rs each and for acquisition of 85% equity shares of SPPL it will be Rs. 1256.95 per equity share of 100 Rs. each. J K Paper will acquire 26.92 Crore share of HPPL and 4.63 Lac shares of SPPL under the considerations mentioned above. E-Commerce based-delivery businesses brought golden days to Paper Industry. Corrugated Brown Boxes are widely used by many E-Commerce players for delivery of products to their customers. JK Paper already manufactures and supplies corrugated packaging papers to various industries. It’s upcoming Ludhiana facility will also focus more on manufacturing of packaging papers. With acquisition of HPPL and SPPL, J K Paper will now become the largest Corrugated Packaging Manufacturer in India. Horizon Packs Pvt Ltd has six manufacturing plants across India while Sucuripax Packaging has facility in Roorkee where Corrugated Packaging or Brown Boxes papers are manufactured. J.K Paper is spending Rs 578 Crores for these acquisitions to become leader in this segment. I have already done detailed Fundamental Analysis of J K Paper on this stock and recommended it for long term when it was consolidating between 130-160 range few years ago (Iin the year 2019). You can read it here. Now stock it above 400+ levels. It has already given 180% returns from its 52 week low. Hence, I feel that fresh entry in this stocks should be avoided. Stock is over-valued and need to be cooled down considering the dream run it has given. If you already have it, you can hold it by keeping your Stop Loss at 398. Disclaimer: Please note Stocksbaazigar Mr Deepak Doddamani is not a SEBI Registered Advisor. He is NSE’s Certified Investment Analysis Professional and NSE’s Certified Marketing Professional Level – 4, Authorized Person at IIFL Securities, AMFI registered Mutual Funds Distributor having 10+ years of experience in the market. Please consult your Financial Advisor before taking any Investment decisions. This post is an Educational post and Stocksbaazigar is not responsible for your Gains/Losses. Thank You.

Performance of stocks listed in last three years

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Performance of IPOS

Primary Market participants take utmost benefits of price discovery mechanism of IPO listings. Most of the times they earn good listing gains. But sometimes things don’t work in their favor. Either Market conditions don’t support or valuations seems too high. IPOs listed in discount, keep breaking down further. Hence Investors take losses and exit rather than holding those stocks and facing big losses further. There were also IPO Opportunities in which Primary Market investors have made 50-80% listing gains. Exiting the Stocks listed on Discount during IPO listing is easier decision than to decide EXIT strategy of Stocks which list at high premium and still see further buying interest. Booking partial profits and holding rest of the stocks with Stop loss is common practice to deal such situation. If your pocket permits you can hold those stocks for long term. Very few people manage to do it. As per human psychology Riding Profits is more difficult decision that sitting on losses for long times. This is due to fear of losing Listing Gains which are visible in front of you. Only deep pockets allow some investors to overcome this fear. When we see Technical Analysis Expert Prakash Gaba Sir holding HDFC bank stocks from IPO times, we feel, “Oh ! I wish I could do that too”. It is easy to say but hard to do. Can we hold stocks listed in IPO for atleast 3 years? OK, Let’s check out how IPOs in the last three years performed to understand this. I have uploaded IPOs which are listed in Calendar years 2019,2020, 2021 and recent listings upto 25th Sept 2022. Total 118 stocks listed in the above mentioned period and their absolute returns is shown in the tables. Please note, I am discussing only those IPOs in details which have doubled the wealth of Investors. First let us see how IPOs listed from 2019 performed. You can see 85 stocks are still trading in profits since their listing prices; 32 Stocks out of these 118 stocks have doubled the wealth of Investors. 33 stocks out of 118 are trading in Negative which amounts to 27% of the total IPOs listed. But Prices of 8 out of them have more than halved which can be termed as very heavy losses. PayTm (-68%), Survoday Small Finance Bank (-67%), Cartrade Tech (-60%), Fino Payments Bank (-58%), Sterling and Wilson Solar (-57%), AGS Transacts technologies (-52%), Windlas Biotech Ltd (-50%) and PB Fintech Ltd (-50%) are the stocks which are down by more than 50% since their listings. As I mentioned in the start of this paragraph, we will discuss stocks that gave more than 100% returns in details now. For easier analysis, I have shared more details about them in the separate post here. Disclaimer: Stocksbaazigar Mr. Deepak Doddamani is not a SEBI registered Research Analyst. He is NSE’s Certified Investment Analysis Professional, NSE’s Certified Marketing Professional Level-4, AMFI registered Mutual Funds Distributor, Authorized Person at IIFL securities ltd, MBA and B.Tech. This post is for educational purpose. Please consult your financial advisor before taking any investment or trading decision. Thank you.

Diwali 2022 picks by Stocksbaazigar

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Diwali 2022

Today on the 22nd Sept 2022 Indian stock markets reacted to the 75 bps rate hike by Fed. The hawkish commentary of Jerome Powell and his determination to arrest inflation on any cost (by rising rates till 4.6% till 2023 end) has not been taken positively by the markets. US Markets and other foreign markets were down and SGX Nifty gave negative cues in the morning. It was clear that Nifty and Bank Nifty both will open negative but it was interesting to see whether buying will happen or not at the dips? Indian Markets have shown great resilience thanks to Liquidity by FIIs and DIIs. China Plus One helped Indian Markets in last two years. Europe Plus One is helping in this year. Europe is facing high inflation and energy crisis. America is facing Slowdown and some countries are standing on the edge of Recession. Fortunately Indian Markets seems little decoupled by whatever is happening globally. Whether it is inherent strength of Indian Markets or just a bubble waiting to get burst only time will tell. Currently Rupee has depreciated to record levels, inflation is concern, and Stocks are trading at inflated valuations. None of these are affecting sentiments of Indian investors. 16500 has become very strong support level on Nifty. So even if Markets fall from here, we might see good buying opportunity only. Samvat 2079 showed some really interesting stories in India. Stocks which outperformed in the year 2020-21 saw huge profit booking. Tata 1Mg’s disruption and increasing competition in pathology sectors saw heavy decline in stocks like Metropolis, Dr Lal Pathlabs and Thyrocare in this year. Hospital stocks too corrected heavily as Covid-waves were really mind than earlier waves. IT stocks which gained good traction during Work From Home culture of Covid-Times saw 20-30% corrections from their highs. Steel, Aluminum and Mining sector stocks which were roaring high due to increased prices corrected too. Surprisingly rate sensitive stocks like NBFCs and Banks kept Nifty and Bank Nifty managed to higher levels. Auto Numbers were better than last year and Stocks like M & M, Escorts were real winners. Adani Group stocks gave multi-bagger returns to their investors and made Adani second richest person in the world briefly on 17th Sept 2022. Analysts who used to say “Never go short on India” started saying “Adani ko short nahi karneka”. Credit Insights warning about Adani Group’s companies being ‘Deeply overleveraged’ was completely neglected by the Indian Retail Investors. Gautam Adani decided to cancel his plans to de-list Adani Power seeing how much trust retail Investors have in his stocks. In the year 2022, Boycott Bollywood and Cancel culture affected Entertainment and Films Distributions stocks adversely. Aviation stocks saw huge correction due to high Fuel prices and frequent incidents which affected safety of the passengers. Hotel and Amusement Park stocks saw good rise thanks to increasing footfalls. They even raised their Prices which increased their margins. Due to high inflation, investors are hiding in FMCG stocks like ITC, HUL etc. ITC moved faster than Rajdhani Express this year shutting mouth of all the Meme-Makers. Now as the September months is about to end and Navratri and Dusshera is around the corner, we must focus on Festival stocks which can give good returns till Diwali 2022. Diwali is starting from 19th November this year. Stocksbaazigar believes that Defense Sector stocks, Adani Group stocks and Auto Sector stocks which are now highly overvalued might see some profit booking and other sectors which are directly or indirectly linked to Festival season will do good. Sugar sector stocks, Paper Stocks, have given good returns till date due to their high demand and low supply. So I am not mentioning them separately. But yes, Diwali is all about Sweets and Balrampur Chini stock should make your portfolio sweeter. Titan and Kalyan Jewellers might also do good. Tanishq is much aspired and trusted brand in this segment. Hence Titan will be my first choice. Stocks related to Shoes (Bata, Metro, Relaxo) and Clothes (ABFRL, Nykaa, Arvind, Raymonds) etc. can be kept on radar. People do buy lot of things on EMI during Flipkart Big Billion and Amazon Great Indian Festivals. Credit Card companies stocks, Bajaj Finserve and Bajaj Finance stocks etc. can be bought to play this story. Home Appliances made major buying Items during Diwali after Electronics and Clothing. So stocks like Dixon tech, Voltas etc. can be included for two months. In the Beverages, United Spirits can be accumulated. Remember you can hold it till New Year too. Other stocks like Logistics companies which have been corrected can make to your short term portfolio. All Cargo, Snowman logistics seems highly corrected. Diwali can never be completed without lights. Havells, Surya Roshni etc. neglected stocks might surprise you in the coming days. Many people prefer that their new vehicles should reach their homes on Dusshera. But booking of those happens almost 4-6 months ahead. So I don’t think Four-Wheeler can make to my list of Diwali stocks. But I can definity include Bajaj Auto, Hero MotoCorp and TVS in this list. In short, this year Diwali will be much bigger as India has came out of Covid completely. We saw how Ganesh Utsav was celebrated. I am expecting same enthusiasm and same joys in Diwali 2022. People may not be spending much in regular days, but they are spending good on Festivals in 2022 year. So let’s be bullish on Market irrespective of Global cues. We can make good Money till Diwali if we select right stocks and allocate right funds for them. This is just a guiding post. You must do your own research or take advice from your Financial Advisor. Disclaimer: Stocksbaazigar Mr.Deepak Doddamani is not a SEBI registered research analyst. He is NSE’s Certified Investment Analysis Professional, NSE’s Marketing Professional level – 4, AMFI registered Mutual Fund distributor, Authorized Person of IIFL Securities and MBA, B.Tech. He is active in market since 2009.

Fear of Missing Out

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‘Fear of Missing Out’ (FOMO) factor in the Stock Market is driving so much liquidity in Market that every bearish move is being negated by Buyers immediately. On Wednesday when a bearish engulfing pattern was seen in the Nifty Chart, Bears tried to short Market immediately after it opened gap down on Thursday. But Buyers were ready with their cash to invest on every dip, and Nifty managed to close near 10300. On Friday 26th March again Nifty closed above 10300. Nifty is holding 10300 from the last three sessions which clearly shows that it can move towards 10600 again. When Nifty made a bottom at 7511 in the March month many Investors didn’t invest in the market as they were fearing further fall in the Market. Analysts who come on Business Channels talked about 6500, 6100 then. Those who invested at those levels are sitting on 30-35% profits now as most of the stocks gave good rally in the last 3 months. Some even made 52 weeks high. Traders started booking profits since 10,000 levels on Nifty. Still Nifty continued to move towards 10600 thanks to FOMO factor in the Market. Stocksbaazigar won’t be surprised if Nifty attains much bigger targets like 10800, 11000 in the coming days due to this strength in the Index. Nifty will fall again to 7377 again from where it started rallying in a rising wedge pattern. The only question is WHEN? Dow Jones showed good correction on Friday. It has closed near its major support level. But a similar situation of FOMO is prevailing in the US Markets. Fed infused liquidity in the market, provided with stimulus packages, and ensured that Markets won’t crash beyond certain levels. From the experience of the 2008 financial crisis, they learned their lessons and were quick to understand that only ‘Liquidity infusion’ can boost the confidence of Investors in falling Market. Trump Govt started buying Bonds, made some policy changes in lending, and also focussed on reducing China-US Trade war tensions to save their economy. Every accusation on China for spreading Coronavirus fuelled the Trade war between the USA and China in the April-May months. From June, we have seen that President Trump has stopped tweeting about China as he understood that it can affect markets again. FAANG stocks (Facebook, Amazon, Apple, Netflix, Google) are performing well. Foreign Portfolio Investors are searching for cheaper investing avenues like emerging markets to park their money again. They are ready to take Risk-On trades again which is helping Indian stock markets. FIIs are net buyers in Indian Equities in the last 3 months. In India, RBI and Govt of India too ensured that there won’t be any liquidity crunch in the Market. Banks and NBFCs are no more in panic mode. Moratorium related mandates are given by honorable Supreme Court, so there is no confusion anymore. Investors are doing ‘delivery based buying’ in stocks like Bajaj Finance, HDFC Ltd, etc. which shows that they are ready to go against the verdict of Brokerage firms which reduced ratings of these stocks. After Franklin Templeton’s Credit Funds issue, investors redeemed their money from Credit Funds but they continued to do their SIPs in Equity Mutual Funds even during Lockdowns. Many new investors joined the investors club of India. A record number of Demat accounts were opened by brokerage companies in the last 3 months and many investors started the first SIP of their lives during this pandemic. This liquidity in Market increased strength of Market and reduced fear considerably. It attracted investors who were sitting on cash. They were waiting for Market Crash after the second wave of CoronaVirus but Nifty didn’t give up. It took support at 9500 levels and gave a rally of 1000 points in no time. If Nifty remains above 10300 for some more time and keeps achieving higher targets like 10600, 10800; fear of missing out factor will increase further which will take Nifty to 11000 or even 11200 before December 2020 Nifty is trading at 26 PE which seems highly expensive if we consider the earnings of companies in Q1 of FY 2020-21. RSI level is also showing that Nifty is in overbought territory. More than 1 Crore people in the world are infected by Coronavirus now, still Capitalist Market is not seeing it as a NEGATIVE trigger for bringing Indices down. In such a situation, every correction in the Market will only act as a buying opportunity. The V-shaped recovery in the Market has increased greed on Investors. Retail investors will get bull-trapped by big traders very soon. But the question remains the same – WHEN? Sometimes, we fear that it is the Traders Market, as fundamentals don’t support the current levels. But on the other hand, we understand that the market is forward-looking. It has already discounted the effect of a pandemic on economics for the FY 2020-21 and it is rationalizing itself for the Next financial year from right now. Traders with good trading skills don’t fear uncertainty. In fact, they love volatility as it helps them gain more. Only Investors are in a dilemma whether they should wait with Cash in hand or should invest (due to FOMO factor)? Stocksbaazigar suggests you to stop timing the market. You can never catch the bottom. All you can do is analyze the charts and speculate based on it. Investors kept waiting for right levels and Nifty ran by 3000 points, if they had invested it earlier they might have gained good capital gains so far. I hope they won’t regret after Nifty reaches 11,000. If they start investing in small quantities now and keep on adding more in every market fall, they will still remain in the Game. So it’s always better to stay invested rather than feeling left out. Create a watchlist of good fundamental stocks where you want to invest and add small quantities at every dip in the stock prices. Keep your positions light and well-diversified. If you will follow … Read more

Fundamental Analysis of JK Paper

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Company Profile Company Name: J K Paper Ltd Industry: Paper and Paper Products House Name: Singhania (HS) Group Year of Incorporation: 1960 Regd Office: Songadh, Gujrat Website: https://www.jkpaper.com BSE Code: 532162 NSE Code: JKPAPER Market Cap: Rs. 2736.04 Cr Category: Small Cap company About JK Paper Ltd: JK Paper Ltd is one of the leading Paper and Paper Products manufacturing company in India. It is a part of J.K Organization and comes under the Harsh Pati Singhania (HS) Group. It has two large integrated paper manufacturing units in India. The first unit JK Paper Mills was commissioned in 1962 in Rayagada Odisha. JK Paper Ltd. took over Central Pulp Mills of Songadh Gujarat in 1992-1993. Central Pulp Mills, an Integrated Paper and Pulp established in 1966. JK Paper Ltd has recently taken over The Sirpur Paper Mills, an ailing paper mill, located at KagazhNagar of Telangana district by acquiring 76.37% of stake. Sirpur Paper Mills was incorporated in 1938 with a capacity of 1,38,000 tonnes per annum capacity. The combined capacity of JKPM and CPM is around 4,55,000 TPA. The Sirpur Paper Mills will add more capacity to JK Paper when it gets functional after renovation. With the upgradation plans, JK Paper can reach more than 7,00,000 TPA production within the next 2 yrs. Product Portfolio of JK Paper Ltd JK Paper Ltd is one of the leading players in the Indian Paper Industry. It has a large distribution network of 188 wholesalers, 10 depots, 4 regional marketing offices, and more than 4000 dealers through which it sells its products. Office papers- JK Cedar , JK Copier, JK Easy Copier, JK Sparkle ,JK Copier Plus and JK Excel Bond. New brands ‘JK CMax’ and JK Max. Printing & Writing Papers- JK Cote , JK Ledger, JK SHB, JK Evervite, JK Finesse ,JK Elektra, JK Lumina, JK Ultraprint, JK Esay Draw Packaging boards- JK TuffCote, JK Ultima ,JK TuffPac , JK IV Board Speciality Papers- MICR Cheque paper, Parchment , Cedar digital JK Paper Ltd is a leading exporter of branded copier paper in India which exports its copier papers to 35 countries. It is also in top two players in coated Paper and High-End Packaging Boards. Segment wise market share of JK Paper Ltd. JK paper ltd enjoys a 28% market share of the paper Industry in India. It is eyeing for 37% market share in Branded Copier paper segment. Currently, in this segment, they have a 24% market share. In the coated paper they are the second largest manufacturer of India with 12% market share. In the packaging paper segment they are market leader with 11% market share. Paper Industry in India Paper Industry in India is a growing Industry. The digitalization hasn’t affected its growth at all. The demand for paper is currently about 15 million tonnes. The overall paper consumption is estimated to reach 24 million tonnes in 2024-25. This industry consumes about 3% of the wood from Indian forests. Rest it relies on an agroforestry initiative for pulp production. Around 1,25,000 Hectares of land in India is under pulpwood plantations. Paper Industry is a very capital intensive technology. Indian Paper Industry has invested over $ 5 Bn in the capacity increase, technology up-gradation, and acquisitions, etc. Anti-dumping duty on Uncoated copier paper It was observed in the last 2 years that uncoated copier papers from Indonesia, Thailand, and Singapore were imported in India at very low prices than which it was sold globally. On the demand of the domestic Paper Industry, Government fixed an Anti-dumping duty on the uncoated copier papers recently. The recommended import price of this paper is decided at $855 per MT. If the import is done below this price, custom will collect the difference as an anti-dumping duty. Paper Prices Trend in India In the last few months, Pulp prices came down by almost $120 per MT which also affect paper prices. Paper prices were down by $100 per MT in the Global Market. In India as per the ASEAN policy, the duty on paper is Zero. Therefore the prices are benchmarked with the landing prices of the paper. JK Paper used 71% of its Pulp from its own Plantations produced in the vicinity of the Paper Mills and imports very small amount of Paper-Pulp. This gives the company a good pricing power over its competitors. Apart from pulp prices, the fluctuations of the dollar also affect the pricing power of India. When China decided to ban the import of mixed waste, they started buying shooting pulp prices. On the other hand, globally mixed waste prices decreased it helped Indian Paper Industries which used cheap mixed waste for production. This helped the industry in the realization of profits. J K Paper Ltd share price details Closing Price on NSE on 11th April 2019 is 153.30 52 Week Low/High of JK Paper Ltd share price is 97.30/194.20 Face Value is Rs. 10 Book Value of JK Paper Ltd share is 92.49 Company P/E is 6.86 vs Industry P/E 11.90 EPS-TTM 22.36 Returns: 1 yr (6.7%), 3 yrs (225.58%) and 5 yrs (363.99%) Shareholding pattern Financials of JK Paper Ltd. Views of Stocksbaazigar on the JK Paper Ltd. stock JK Paper has given tremendous returns to Investors in last 5 yrs thanks to the growing demand of Paper in India. The globally decreased Pulp Prices may not reach the highs at which they were in the next 3-5 years. So clearly, the Indian Paper Industry will show good performance in the upcoming quarters too. The major advantage of JK Paper is it doesn’t depend much on the import of raw materials. They are integrated Paper Pulp production and Paper Manufacturer. It helps them raise the prices of different paper segments by 1,2,3% thanks to the margin they enjoy. JK Paper Ltd is increasing its capacity and utilizing up to 103% of its capacity. They have a target to increase it up to 110% soon. The effect of GST reduced demand for FMCG products in 2017 which … Read more

Navin Fluorine International Ltd Analysis

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In the summer the demand for coolers, refrigerators and air-conditioners is very high. You will always see smart money investing in stocks like Symphony Ltd, Bluestar, Voltas etc. Very few investors understand the importance of refrigerants gases manufacturers in share market. It is because they fail to connect the link between these chemical companies with summer. It is important to focus on companies like SRF and Navin Fluorine during summer. The reason behind choosing NFIL over SRF is the consistent performance of NFIL in the last 5 years (return of 985% in 5 yrs) and the possible upside in the year 2019. Before starting the Fundamental Analysis of NFIL let’s see some details about the company. Company Profile Company Name: Navin Fluorine International Ltd Company Website: www.nfil.in House Name: P.Mafatlal Group Industry: Chemicals -Others Year of Incorporation: 1998 Regd Off: Vile Parle, Mumbai Market Capital: Rs. 3647.96 Cr Date of Listing: 30th Sept 2003 Sectors: Fine and Speciality Chemicals, Crop Sciences, Refrigerants, and Life Sciences etc. Fundamental Analysis of Navine Fluorine International Ltd. As the name suggests company focusses on Fluorine Chemistry which is an essential part of the Refrigeration industry. Navin Fluorine has a brand called Mafron under which it manufactures refrigeration gases. It also produces inorganic fluorides which are required in pharma and agro sectors. The inorganic fluorides are also used in other industries like Oil and Gas, Glass, Abrasive and electronics too. The third important business of NFIL is large scale manufacturing of Specialty Fluorochemicals required for Agriculture, Pharmaceutical and Petrochemical Industries. It manufactures fluorine-based intermediaries for the speciality chemical industry. The fourth segment of NFIL is CRAMS. Navin Fluorine International Ltd. offers Contract Research and Manufacturing Services for custom chemical synthesis of fluorinated compounds. Navin Fluorine Share Price Current Market Price on NSE on 07/04/2019 is 735.75 52 Week High/Low of NFIL are 579.70/820 Face value: Rs. 2 Number of Outstanding shares: 4,94,46,885 P/E : 23.96 vs Industry P/E : 22.68 EPS-TTM (Rs): 30.71 Book Value/ Share: 199.2 Returns: 1 yr (-8%), 3 yrs( 121%) and 5 yrs (985%) Shareholding pattern of NFIL Promoters: 31.03% General Public: 28.17% NBFC and Mutual Funds: 16.46% Foreign Institutions: 16.08% Others: 7.21% Financial Institutions: 1.06% Key financials of Navin Fluorine Comment: Over the years Navin Fluorine has become highly Cash-rich company with No-debt on it. It has good Assets over liabilities and good cash reserves. Comment: Navin Fluorine is a profitable entity and performing really good. The company has become a Midcap company from a Small Cap company now due to its consistent performance. Comment: NFIL is paying good dividend to its investors. On the completion of its 50 yrs it also announced special dividend. Stocksbaazigar on Navin Fluorine International Ltd. After listening to the Con call of Navin Fluorine on YouTube, I can fairly say that Management of company is confident about the growth from their core business and expecting 30-32% year on year growth. After the laws on Carbon Footprints, organized players like Navin Fluorine International Ltd which was dominant player in Refrigerant gases well-diversified within the Fluoro-chemical businesses which has increased its Product line for better. The acquisition of Manchester Organics Ltd added a portfolio of over 27000 compounds and 3000 IPs to the NFIL. In Dewas, Madhya Pradesh NFIL made strategic investments in cGMP pilot and Multi-purpose plant. As this stock has performed really well in last decade, investors should buy it only on dips and hold them with strict stop losses. Chart of NFIL is really good too. From January to April there is a good delivery-based buying in it. Navin Fluorine International Ltd. company is fundamentally really strong and looks attractive on Technical parameters too. All the 4 BUs of Navin Fluorine will show good growth in the future. A stock of NFIL is a good buy with Stop loss at 698 for the 1-year Target Price of 850. I won’t be surprised to see if the stock over-performs and touches 890 till Dec 2019. Disclaimer: Please note, Stocksbaazigar Mr. Deepak Doddamani is not a SEBI Registered Advisor. He is NSE’s Certified Investment Analysis Professional and NSE’s Certified Marketing Professional Level – 4. Do not consider this post as Recommendation. Stocksbaazigar won’t be responsible for your Profit/Loss. This is an Educational post and should be treated like one. Thank You. Navin Fluorine International Ltd fundamentals explained by Stocksbaazigar

Arvind Fashions Ltd

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Arvind Fashions Ltd Listed Arvind Ltd, India’s leading textile company got demerged on 26th November 2018 into Arvind Ltd (demerged entity), Anup Engineering and Arvind Fashions Ltd. On the 27th November, Arvind Ltd share was trading at 311 Rs per share. On 28th Nov after ex-date, the stock opened at 91 Rs per share and since then we are seeing a gradual decrease in the share price of Arvind Ltd. as most of the debts are now with this parent company. On the other hand, Investors who wanted to get benefited by the corporate action are highly disappointed to see a listing of Arvind Fashions Ltd at the half of the estimated price. Listing fiasco of Arvind Fashions Ltd Analysts suggested that Arvind Fashions Ltd should list between Rs 1200 to 1400 per share. But on 8th March 2019, it listed on Rs. 591.75 per share. For every five shares of Arvind Ltd. investors got 1 share of Arvind Fashions Ltd. formerly known as Arvind lifestyles ltd. So ideally, the base price should have been (311*5) around 1500. Instead, it was taken as 311.5, a share price before the demerger date. Anup Engineering listed at the proper price but Arvind Fashions Ltd disappointed the Investors. The stock closed on the upper circuit of 621.3 by 10 a.m. on listing day i.e. 8th March 2019. Investors are aware of this listing fiasco. Some expert thinks that Price Discovery mechanism happens only once and therefore on Monday 11th March, stock prices won’t get adjusted to 1200+ range. But there are few exceptions who believes that Stock Exchanges will re-adjust the price so that Investors won’t feel cheated. It is important to understand that stock has demerged into 3 different companies now and not in 2. Hence, it may not be a listing fiasco, as some of the Investors are claiming. One thing is confirmed that Arvind Fashions Ltd share will move upwards from here circuit to circuit till it reaches its True price/ Intrinsic price. What should Investors do now? Retail Investors who aren’t aware of this may sell the stocks in a loss in a day or two after listing. It is an opportunity for others to take Fresh positions in the Arvind Fashions Ltd shares. The trick to buy stocks which opens at the upper circuit is very simple. On the trading day (T-day) you have to place an order at 4.99% from the closing price of (T-1) previous trading day during Pre-open session i.e. 9:00 a.m. to 9:07 a.m. to take a chance. If you are lucky, you will get an entry in the stock. But one has to be very careful about newly listed stocks as they are very volatile and can show irregular fluctuations in the share price. History of Arvind Ltd Arvind Fashions Ltd is the fastest growing company of Lalbhai Group. Arvind Ltd (founded as Arvind Mills) is India’s largest Denim Maker established by Padma Bhushan Kasturbhai Lalbhai in Gujarat during British Raj. This group has diversified businesses in different sectors wiz. Textiles, Chemicals, Retail, Engineering, Real estate, Beauty Products etc. Arvind Ltd. took great benefit of Swadeshi Movement during the Independence struggle and became one of the largest Khadi, Dhoti, Saree maker in India. Kasturbhai started with one textile company inherited from his Father in 1917 and then went ahead to buy 12 more textile mills from his competitors (mostly relatives) till 1931. His involvement in freedom struggle and friendship with Gandhiji helped him gain good political and social stand in the Society which indirectly helped his Lalbhai Group. Kasturbhai believed in giving back to Society. Ahmedabad University, IIM Ahmadabad etc. are standing on the lands donated by the Trust of Kasturbhai Lalbhai. There was a phase in Kasturbhai’ s life when Arvind Ltd was under tremendous debt and faced allegations of tax evasion and misappropriation in accounts. He got a clean chit after few years but lost his energy and his health during the legal battle. He retired from business in 1977. In January 1980, he died at the age of 85 in Ahemadabad. Second Innings of Arvind Ltd. The second Inning of Arvind Ltd was started by a new Generation of Lalbhai family. India’s first ever home-grown denim brand Flying Machine was born in 1980. In years to come, Arvind Ltd became the fourth largest manufacturer of Denim Clothes in the World. In 1993, Arvind Ltd introduced International brand ‘Arrow’ to India by opening their flagship stores. By 1995 they introduced Mass Market concept to India through their MegaMart. The year 1995 was a landmark year in the company history thanks to the launching of Ruf n Tuf jeans which was an instant hit in the 90s. Akshay Kumar was the brand ambassador of Ruf n Tuf brand. Arvind Ltd brought brand Excalibur and Wrangler to India in 1997 and 1999 respectively (which are now part of ‘Unlimited’). The association with Globally branded apparells kept increasing in New Millenium too. Arvind Ltd brought Tommy Hilfiger (2004), GANT sportswear (2006), Cherokee (2007), US Polo Association (2009), Nautica, Elle (2012), Ed Hardy, Hanes Innerwear (2013), Calvin Klein (2014), The children’s place, GAP (2015) etc. to India through exclusive licencing and joint ventures. Arvind Ltd. brought Shoe brands like Arrow, USPA, Flying Machine (2015) and Aeropostale (2017) to India. It also launched its own Men’s wear brands like Creyate (2014) and True Blue (2016) in this decade. In the 2016 company entered Online retailing through its e-commerce website nnnow.com On the 8th March 2019, the demerged entities of Arvind Ltd wiz Arvind Fashions Ltd and Anup Engineering listed on the stock exchanges. Shareholder of Arvind Ltd were allotted One share of Anup Engineering (formerly Anveshan Heavy Engineering) for every 27 shares of Arvind Ltd while One share of Arvind Fashions Ltd for every 5 shares of Arvind Ltd.

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