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As India is suffering from a bad phase of coronavirus pandemic, a sudden demand for oxygen has been rising. As a result, the companies that produce oxygen or have the word “oxygen” in their names, are witnessing a strong rally in the stock market.
Due to the increase of COVID 19 patients in Mid April, the demand for medical oxygen rises, which in turn forces the central government to supply oxygen across the country.
Several reports indicate that there is an acute shortage of medical oxygen in the country and many hospitals are struggling to find enough oxygen for the patients.
As a result, the centre took immediate action by banning the supply of medical oxygen for industrial purposes and turned the supply into an essential public health commodity.
Several green corridors have been established to aid the rapid supply of oxygen through oxygen Express trains.
The rising demand for oxygen among Indian patients increases the shares of the companies that produce oxygen or have the word oxygen in their names.
For instance, National Oxygen Limited, Bombay Oxygen Limited and Bhagwati Oxygen - all the firms which are unlisted on the stock exchange - have experienced a sharp rise of 47% in April despite rising uncertainty and weakness in economic health.
From all the above points, one thing is clear that investors are keen to invest in the companies who supply medical oxygen to book good profits till the deficiency of oxygen lasts.
Meanwhile, some investors have mistakenly invested in the companies who have to do nothing with the oxygen, just have oxygen in their names. For example, Bhagwati Oxygen and National Oxygen Ltd are the producers of medical oxygen but Bombay Oxygen has ended its gas operations in 2019. Now it is a Non-Banking Finance Corporation.
Bombay Oxygen Investments Ltd was earlier known as Bombay Oxygen Corp Ltd. During the second wave of Covid 19, the shares of the company have gone up by 110 per cent at the beginning of April.
Here are some oxygen stocks witnessing a Strong Rally amidst the second phase of Covid 19:
1. Bombay Oxygen Investments Ltd:
Bombay Oxygen Ltd is a Non-Banking Finance Corporation (NBFC), that has ended its gas production in 2019. Now the company’s name is Bombay Oxygen Investments Ltd.
The company has a low return on equity of -2.52% for the last 3 years.
The company’s compounded sales for the last 5 years is -32.
The company is nearly debt-free.
The market capitalization of Bombay Investments Ltd is Rs 350.19 Crore.
2. National Oxygen Limited
National Oxygen Limited is an Indian company, primarily produces industrial gas such as Oxygen and Nitrogen.
The company has a market capitalization of Rs 30 Crore.
The 5 years compounded profit growth of the company was 13%.
The company has delivered a poor sales growth of 9.32% in the last 5 years.
Ratios as of March 20 are as follows:
ROCE: 9.85%
Debtors Days: 40
3. Gagan Gas Ltd:
Gagan Gas Ltd is a distributor of fuel gas companies mainly known as LPG have also gone up by 53 % in the last month, despite not having any news of producing oxygen gas.
The CAGR of the company before the second wave of COVID 19 is -10%.
The market capitalization of Gagan Gas is Rs 4 Crore.
For the last 3 years, the company has a low return on equity of 8.57%.
Compounded sales and profit growth for the past 5 years was -4% and -15%.
4. Bhagwati Oxygen Ltd:
Bhagwati Oxygen is a manufacturing company with the main focus on manufacturing industrial gases such as Oxygen and Nitrogen.
The company has a market capitalisation of Rs 4 crore.
The company has a low return on equity of 5.65% for the last 3 years.
As of March 2020, the company has high debtors of 369.87 days.
5. Everest Kanto Cylinder Limited
Everest Kanto Cylinder is India’s largest player in high-pressure gas cylinders with a market share of around 50%. The company has around 150 strong client base from numerous vertices including automobile OEM, city gas distribution, cylinder cascades, medical sector, defense including Bajaj Auto, Hyundai, Toyota, Adani Gas and more.
As per the acute shortage of oxygen cylinders amid the second wave of Covid 19, the company has expected to see a huge demand in its medical equipment segment.
The company has a market cap of Rs 1500 Crore.
The return on equity of the company for the last 3 years is 5.76% which is considered low.
The company has delivered a poor sales growth of 10% over the past 5 years.
6. Linde India Ltd:
Linde India Ltd formerly known as BOC India Ltd is a gas manufacturing company. The stock price has gone high in the past month whereas the stock’s CAGR before the second wave of Covid 19 is registered as 55.3%.
The market cap of Linde India ltd is Rs 15,943 Crore.
The company has had a low return on equity of 5.65% for the last 3 years.
The company is also debt-free.
The CAGR ratio of the company for the past 5 years is 52.75%.
Country’s Oxygen Crisis
The country’s sudden demand for oxygen gave a sharp rise to the oxygen-related stocks that has been driven by the scarcity of the commodity over the past few weeks.
According to several reports, oxygen production has been increased across the country to deal with the COVID 19 infected people.
Due to an excessive shortage of oxygen, the prices of oxygen cylinders in many parts of a country have more than doubled.
The rising demand for oxygen cylinders during the second wave of pandemic uplifted the company’s stock’s prices to a greater extent. However, many research analysts said that the rally of oxygen stocks to be short-lived as the demand for oxygen stocks is influenced by short term liquidity. Hence, it is suggested to check the fundamentals of the company before making any decision in the stock market.
पिछले सप्ताह ब्रेंट कच्चे तेल के भाव अमेरिका-ईरान के बीच हो रही परमाणु डील की वार्ता के दौरान 70 डॉलर प्रति बैरल के स्तरों से टूट कर 65 डॉलर तक फिसल गए। घरेलु वायदा कच्चे तेल के भाव सप्ताह में 5 प्रतिशत तक टूट कर 4550 रुपये प्रति बैरल पर रहे। तेल की कीमतें मार्च के बाद से अपने सबसे बड़े साप्ताहिक गिरावट को दर्ज करने की कगार पर है। अमेरिका और ईरान 2015 के परमाणु समझौते को पुनर्जीवित करने के करीब हैं, जो ईरान के तेल, बैंकिंग और शिपिंग क्षेत्रों पर प्रतिबंध हटा सकता है, और इस प्रकार ईरानी कच्चे तेल की आपूर्ति को बढ़ावा दे सकता है।
उधर, ओपेक समूह ने इस महीने उत्पादन में 350,000 बैरल प्रति दिन की कटौती को कम करना शुरू कर दिया है। ओपेक सामूहिक तेल उत्पादन मई और जून दोनों में 350,000 बैरल प्रति दिन और जुलाई में 400,000 बैरल प्रति दिन से अधिक बढ़ाने के लिए तैयार है। इसके अतिरिक्त, सऊदी अरब भी अगले कुछ महीनों के दौरान धीरे-धीरे १० लाख बैरल प्रतिदिन की अतिरिक्त एकतरफा कटौती को कम करेगा, जिसकी शुरुआत मई और जून दोनों में मासिक उत्पादन में 250,000 बैरल प्रतिदिन की वृद्धि के साथ होगी। कुल मिलाकर, ओपेक के जुलाई तक बाजार में 21 लाख बैरल प्रतिदिन तक लौटने की उम्मीद है।
इस सप्ताह कच्चे तेल के भाव में मंदी रहने की संभावना है। ब्रेंट क्रूड ऑयल में 60 डॉलर पर सपोर्ट है और 71 डॉलर पर प्रतिरोध है। घरेलू वायदा क्रूड ऑइल में 4450 रुपये पर सपोर्ट है और 4900 रुपये पर प्रतिरोध है।
The DOT (Department of Technology) has approved the trial of 5 G technology on the 4th of May.
Post successful trial of 5G technology in India, the company's stocks that offer the 5 G technology have seen high growth. As the news comes out regarding the auction of the 5G network in Q1 of FY22-23, stocks of these companies are growing at a large pace.
Due to COVID 19 outbreak, many people have to work remotely which has highlighted the importance of 5G technology.
Before talking about the companies that are launching the 5G Network in India, let's understand about 5G technology and the companies in India into its segment.
5G is the fifth generation mobile network that comes after the generations such as 1G, 2G, 3G and 4G It is a new global wireless standard network that is designed to connect virtually everyone and everything together that includes machines, devices, objects with people.
If we compare it to 4G, then the 5G network is much faster and more responsive than other generation networks. Also, 5G comes with a greater capacity that will be a real breakthrough for IoT or Internet of Things, AI, machine learning and automate network management.
As per the latest reports from Global Supply Mobile Associations, the 5G network is active in 61 countries. Some of the countries which have enabled 5G technology for its users are Canada, China, Australia, South Korea, the USA and other European nations.
Currently, investments are going on in the 5G Tech in India. The total market size of 5G Tech and related services all over the world amounts to USD 54 billion. It is stated that the market size of 5G will surpass the current amount and will reach around 249.2 billion by the end of 2026, which is more than any countries’ GDP in a year.
1. Tejas Networks
Tejas Networks Limited is a manufacturing company that manufactures telecommunication equipment and has multiple licenses to export its products to several countries. The company designs develop and sell high performance and cost-competitive networking products to telecommunications service providers.
52 Week Performance
If you look at its past performance, the shares of Tejas Networks is standing at its 52 weeks high of Rs 221.5 from a 52 week low of Rs 28.50, thus giving 10 times return. On 11 May, trade experts recommended Tejas as a Buy with a target price of Rs 235 in its research reports.
2. Tech Mahindra
Tech Mahindra is an Indian multinational company known for offering IT and business process outsourcing services. The company’s shares are expected to rise post launching of 5G services in India.
52 Week Performance
If you look at the 52-week performance of the IT company; its 52 week high is Rs 1081.25 and 52 week low was Rs 501.5. Numerous stock brokers and research analysts recommended buying this stock.
The target price range of Tech Mahindra is from Rs 1100 to Rs 1140.
3. Himachal Futuristic Communications Ltd (HFCL)
HFCL is a leading manufacturer of optical fibre cables, optical transport, broadband equipment for the telecommunication industry. The company has a listed track record of more than 30 years. Also, the share price of Himachal Futuristic sets a hit record from a previous 20 years low. This indicates a growth in the company's share.
The scrip's 52 week low is marked as Rs8.70 while 52 weeks high is Rs 38.90.
Moreover, the company has outperformed Sensex Index by 202% and hence it gives 4 times returns from its 52 week low.
4. Bharti Airtel
Bharti Airtel is a blue-chip company and a renowned name in the communication industry that holds around 36% of the market share in the industry as a telecom service provider. Also, the company has already started its trial for the launch of the 5G technology which is the reason behind the stock’s growth.
The stock’s 52-week performance is given as Rs 394.52 week low and Rs 632.52 week high.
5. Reliance Industries
Reliance Jio which is a leading company in the telecom sector is all set to deploy its 5G and its related services such as the Internet of Things (IoT).
Jio is continuously raising its market share because of the company's outstanding performance. If you look at 52-week performance, then the company manages to reach Rs 1393.65 as a 52 week low and Rs 2368.8 as a 52 week high.
The stock is recommended by numerous trade analysts and stock brokers.
One of the most important things about the company is that it has the strongest balance sheet and soon it will be a leader in deciding 5G prices commercially.
6. Vodafone-Idea (VIL)
A company whose stock prices went down post-merger from Rs 30 to Rs, has given almost 6 times returns to its shareholders. Vodafone Idea Limited is the third largest telecommunication service provider for conducting trials of 5 G technology services.
The company’s 52 week low has been recorded at Rs 4.19 while its 52 weeks high is Rs13.8. The scrip of VIL has outperformed the Sensex index by almost 22%.
7. Indus Towers
The company is a merger of two renowned entities Vodafone PLC and Bharti Airtel, formerly known as Bharti Infratel.
Indus Towers has a majority holding of Bharti group, Vodafone group and global investors such as Canadian Pension funds, which makes the company the next Hindustan Unilever in its sector.
Indus tower’s stock performance has been improving day by day as its 52 week low Rs 161.3 and its 52 week high of Rs 282.
8. ITI
ITI is a telecom company that provides telecom equipment to BSNL, MTNL and other Defence departments. The company is known for manufacturing 5G enabled devices to smoothen the test trial of 5G deployment.
As there have been global tension and pandemic issues between India and China, the Indian government has started to promote ITI for its several telecom equipment’ procurements.
The 52 week low for the company is Rs 78.8 whereas its 52 week high Rs 151.6.
9. Smartlink Holdings
The company deals with the trading of telecom equipment goods through its subsidiaries Telesmart SCS Ltd, Digisol Systems Ltd and Synergra EMS Ltd. The company came to the notice because of its manufacturing services of cables and networking devices that will help deploy in 5G services. The company’s 52 week low is Rs 61.4 while it's 52 weeks high of Rs 107.45.
10. MTNL
MTNL is a government company, primarily known for providing telecom services in limited circles. A few months back, MTNL received permission to conduct 5G trials for deploying these services commercially. Its 52 weeks high is Rs 24.4 while its 52 week low was Rs6.68, which makes it a multi-bagger stock.
While previous telecom networks enabled the mobility boom, 5G technology is making devices more friendly and upgrading digitization every day.
Sector: Miscellaneous
Business Area of the Company:
It is one of India's leading securities depositories in India. It offers various services such as account opening, de-materialization, processing delivery receipt instructions, account statement, Re-materialization, pledging, nomination, the transmission of securities, bank account details & SMS services for depository participants.
The company was initially promoted by BSE Ltd. All leading stock exchanges like the BSE Ltd. National Stock Exchange and Metropolitan Stock Exchange of India are also associated with it.
Technical Setup:
Fundamental Setup:
Astral Ltd: CMP 1680 SL 1600 TGT 1820
Sector: Plastic products
Business Area of the company:
This company is the leading manufacturers of plastic pipes. It manufactures plumbing, Drainage, agriculture, Industrial, electrical conduit, and fire sprinkler pipes along with Hauraton surface drainage systems.
It has been a pioneer in introducing CPVC pipes and fittings. The Company offers a wide range of products across piping and adhesives to meet the needs of the real estate sector in India. It has 12 manufacturing units in India and overseas. Astral is delivering the best in its business.
Technical Setup:
Fundamental Setup:
Kabra Extrusion: CMP 181.75 SL 171 TGT 200
Sector: Capital Goods-Non Electrical Equipment
Business Area of the company:
The Company manufactures extrusion lines with matched components, sophisticated automation concepts & tailor-made solutions enabling processors to consistently produce high-quality end products to all its customers.
Technical Setup:
Fundamental Setup:
Company with Zero Promoter Pledge
Promoters increasing shareholding QoQ
Investment Pick: Radico Khaitan CMP 546 TGT 675+
Market Cap: 7296Cr
ROE 17.3%
Dividend Yield 0.37%
Stock P/E 30.2
Sector: Alcoholic Beverages Industry: Breweries & Distilleries
About the company:
Radico Khaitan is one of the oldest and the largest manufacturers of Liquor in India especially Indian Made Foreign Liquor. Also known as Rampur Distillery earlier, started its business in 1943, and it emerged as a major bulk spirits supplier, it is one of the most renowned liquor brands in India.
With more than 75 years of experience in spirits making, it has evolved from being just a distiller of spirits and turned into a leading IMFL company in India. With the unique vision of the promoters, started its brands in 1998 & launched 8 PM Whisky and built a strong manufacturing platform and developing a pan India distribution network to expand its premium brands. It is one of the few companies in India to have developed its entire brand portfolio organically, with in-house capabilities with R&D and customer preferences.
Major Brands – 8-PM Whisky, Magic Moments Vodka, Contessa XXX Rum, and Old Admiral Brandy are some of its well-known brands.
Business Area of the Company:
The company is engaged in the manufacturing and trading of alcoholic products such as Indian-made Foreign Liquor, Alcohol, Country Liquor, etc. The company has its presence in India as well as across global market presence is there too.
Fundamental Setup:
The Indian automobile industry has to go through an amazing change, Now the future of the automobile industry is Electronic Vehicles. The India Electric Vehicle Market was valued at USD 5 billion in 2020 and is expected to reach USD 47 billion by 2026 registering a CAGR of above 44% during the forecast period (2021 - 2026).
The EV has established a market in the USA and other countries with rapid growth in the Indian market. The major benefits of electric vehicles are that it's total pollution-free and with low maintenance. In the USA market, electric vehicles are in great demand and across the globe, the demand seems to increase.
The pandemic hit a lot of industries and one of the major set back is the automobile industry. The sales of vehicles across all the segments have gone down drastically in the country.
The Electric Vehicle market, which had just started to move up and was witnessed a stable rise in its sales, also become a victim of it. Overall, the automobile sector had just started to recover from the first wave of virus when the second, more serious, wave struck earlier this year adding to the misery of the vehicle manufacturers.
But once when things get normal, electric vehicles will witness a boom. With a population of more than 1.3 billion, the market potential of India is second only to China. The world's most populous country has the largest share in the EV market and it contributes to more than 30 pc of the total EV sales around the globe.
The EV market in India has huge potential. One of the reasons for that is an average Indian consumer likes his/her vehicle to be economical and easy on the pocket and the operating cost of an EV is a mere 80 paisa per kilometre, far less than what an ICE-based vehicle costs.
Moreover, battery prices declining since 2010, electric vehicles are expected to become almost as cheap as fuel-powered cars in the future.
India also has a lot to gain from the widespread adoption of e-mobility. Under the 'Make-In-India' program, the manufacturing of e-vehicles and their associated components is expected to increase the share of manufacturing in the country's GDP to 25 per cent by 2022.
The recent uplift in the sales of e-vehicles in the country points towards a rising preference for the same. There is no doubt about it, that the future belongs to EV's with fast-charging batteries and extended driving range.
The government of India also looking to grant some amount under PLI Scheme so that it will boost up the manufacturing of batteries in the country itself.
The major requirement in EV is Lithium-Ion Batteries which is a major requirement for the electric vehicle, several major companies that are manufacturing the same will also get benefited from it.
1. Exide Industries
Headquartered in Kolkata, Exide Industries Ltd manufactures lead-acid storage batteries and inverters. The company manufactures lead-acid storage batteries from 2.5 ampere-hours to 20,600 ampere-hours. The products manufactured by the company include automotive batteries, industrial batteries, and submarine batteries.
Company with a market cap of Rs.15861 & ROE 11.8% with ROCE16.8% & Dividend Yield 2.20%
Brands & Products
With 7 world-class batteries and 2 inverter manufacturing factories across India, it offers the widest battery range for the widest applications, possible. The products are sold across the world, under its brand names EXIDE, CHLORIDE, SF SONIC, CEIL, INDEX & DYNEX.
2. Amara Raja Batteries
The flagship company of the Amara Raja Group is the technology leader and is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry. It is looking to build a Lithium-ion assembly plant soon. The firm is already working in collaboration with different state governments to promote the use of electric vehicles.
Company with a market cap of Rs.13436 & ROE 18.6% with ROCE23.5% & Dividend Yield 1.40%
Brand & Products
Amara Raja is the preferred supplier to major telecom service providers, Telecom equipment manufacturers, UPS sector (OEM & Replacement), Indian Railways, and Power, Oil & Gas among other industry segments.
3. Eveready Industries Ltd
Eveready Industries India is engaged in the business of marketing dry cell batteries, rechargeable batteries, flashlights, packet tea, general lighting products, small home appliances, and confectioneries which come under a single business segment known as Consumer Goods.
Company with a market cap of Rs.2135 & ROE 10.5% with ROCE 15.1% & Dividend Yield 0%
Brands & Products
Dry Cell & Rechargeable Batteries, Flashlights & Lanterns, Lamps & luminaries (Eveready Cell, Power cell)
4. HBL Power
HBL Power Systems Limited is engaged in the business of manufacturing batteries. The Company's segments include Batteries and Electronics.
Company with a market cap of Rs.1055 & ROE 2.99% with ROCE 6.06% & Dividend Yield 0.79%
Brands & Products
Batteries. We manufacture a wide range of specialized batteries in Nickel, Lead, Silver Zinc & Lithium
Electronics: Railway electronics, Defense Electronics & Thyristor control rectifiers.
Sector: Pharmaceuticals Industry: Pharmaceuticals - Indian - Bulk Drugs & Formulation
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.
Sector: Textiles Industry: Textiles
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.
Sector: Capital Goods-Non Electrical Equipment Industry: Abrasives and Grinding Wheels
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.
Sector: Chemicals Industry: Fertilizers
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.
GNFC Fertilizers GNFC Chemical
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