1. Glenmark Pharmaceuticals:- CMP 591.5 SL 570 TGT 640
Sector: Pharmaceuticals
Industry: Pharmaceuticals – Indian – Bulk Drugs & Formulation
Business Area:
The company is engaged in the development of new chemical entities & new biological entities. Speciality Business: Drug Discovery, Primarily focused in the areas of inflammation, metabolic disorders, and pain. Speciality Business: Formulation Business, The formulation business focuses on therapeutic areas viz. Dermatology, anti-infective, respiratory, cardiac, diabetes, gynecology, CNS & oncology.
Technical Setup:
- Stocks are trading above short, medium & long-term moving averages
- MACD crossover above the signal line
- Price Strength indicated by RSI
Fundamental Setup:
- Company with high TTM EPS growth
- The company has reduced debt
- Growth in net profit with an increasing profit margin
2. Lux Industries:- CMP 1980 SL 1900 TGT 2150
Sector: Textiles Industry: Textiles
Business Area:
The company is primarily engaged in the manufacturing and sales of knitwear. The company has an enduring brand image in the hosiery market.
With the rapid growth that the company has been experiencing, in both sales and profits, constantly expanding and innovating products and production techniques while manufacturing an uncompromising stance on comfort.
The company has operations in India & caters to both domestic and international markets.
Technical Setup:
- Strong price momentum with volume
- Double bottom price formation on daily charts indicating a strong move above CMP1980
- Stocks trading above its all-important moving averages
Fundamental Setup:
- FII & FPI or institution increasing their shareholding
- The company has delivered good profit growth of 22.81% CAGR over the last 5 years
- The company has a good return on equity (ROE) track record: 3 Years ROE 27.66%
3. Carborundum Universal: CMP 571 SL 535 TGT 620
Sector: Capital Goods-Non Electrical Equipment
Industry: Abrasives and Grinding Wheels
Business Area:
The company pioneered the manufacture of Coated Abrasives & bonded abrasives in India in addition to the manufacture of Super Refractories, Electro Minerals, Industrial Ceramics & ceramic fibers.
The Company’s range of varieties of Abrasives, Ceramics, Refractory products & electro-minerals is manufactured across several locations in & outside the country.
Technical Setup:
- Stock Formed Inverted Head & Shoulder kind of price pattern
- Increase in volume with the high delivery percentage in last few trading sessions
Fundamental Setup:
- The company has been maintaining a healthy dividend payout of 20.04%
- Company with reduced debt.
- FII & FPI or institution increasing their shareholding
- ROE & ROA is improving for last 2 years
Investment Pick
4. Gujarat Narmada Valley Fertilizers: CMP 367 TGT 485
Sector: Chemicals Industry: Fertilizers
Business Area:
Gujarat Narmada Valley Fertilizer & Chemical is one of India’s Leading entities engaged in the manufacturing & selling of fertilizers, Industrial chemical products & providing IT services.
Products & Services:
GNFC Fertilizers
GNFC Chemical
5. Information Technology ( For IT related products & services)
Fundamental Setup :
- Stocks are trading at 1.05 times its book value
- The company has delivered good profit growth of 25.77% CAGR over the last 5 years
- Stock is trading at 0.99 times its book value
- Over the last 5 years, the Debt to equity ratio has been 34.23% V/S industry average of 107.62%
- Growth in Net Profit with increasing Profit Margin (QoQ)
- Increasing Revenue every quarter for past 2 quarters
