What sensational did you miss this week?
- Indian Railways earned revenue of Rs 2.4 lakh Cr during April 2022 – March 2023 (financial year), up by around Rs 49,000 Cr.
- India’s gems and jewellery exports rose 2.48% year-on-year in 2022-23 to Rs 3 lakh Cr: Gem & Jewellery Export Council.
- Government-owned steel companies have cleared loans of around Rs 7,673.95 Cr from various MSMEs during Financial Year 2023: Steel Ministry.
What can you learn from this?
- Fundamental Analysis learnt from stock market courses online with certificate of IRCTC and figuring the key characteristics of a monopoly. Refer to the Video in Focus Section for more!
- Sectoral Analysis learnt from online share market courses of the Jewellery Sector in India and finding out the best companies from the sector.
- Sectoral Analysis learnt from share market training in Noida of the Steel Sector in India and finding out the best companies from the sector.
Upcoming IPOs:
- Mankind Pharma IPO opens on 25.4.23 & closes on 27.4.23 which has fixed price band for its IPO at Rs 1,026 to Rs 1,080 per share. It develops, manufactures, and markets pharmaceutical formulations across various acute and chronic therapeutic areas and several consumer healthcare products. It has one of the largest distribution networks of medical representatives in the Indian pharmaceutical market. Over 80% of doctors in India prescribed their formulations and has been ranked number 4th in terms of domestic sales during the Financial Year 2022.
- Avalon Tech IPO listed at Rs 431 per share on BSE, a discount of 1.15%. On NSE, it listed flat at Rs 436.
Not to miss updates:
- To check if your Demat is KYC Registered, Click Here!
- SGX Nifty will get delisted from the Singapore Exchange. It will be relisted as ‘NSE IFSC Nifty’ from July 3.
Story of the Week: El Niño and its massive effects
El Niño is a climatic pattern that describes the unusual warming of surface waters in the central and eastern part of tropical Pacific Ocean. This unusual warming of surface waters affects ocean currents, fish populations and wind flows.
EL Niño is linked with poor southwest monsoon rains across India as observed in 2009,2014,2015 and 2018.
According to statistics, about 60% of the time there will be a probability of drought in India during an El Niño year. Chances of below-normal rain will be 30%, while the prospect of normal rain remains very rare at 10%.
Sectors that will affected the most as per stock market training institute:
Agriculture- For every 1 degree of increase in temperature, the yields of various fruits, grains and vegetables are expected to decline by 3-7%. The productivity of agricultural produce reduces by 20-40% in El Niño. Thus, the fertilizer and agrochemical sector will also be hit.
FMCG- The FMCG companies will be hit as low rainfall will result in rise in prices of agricultural produce. As per best stock market courses, it will result a rise in product prices sold by FMCG Companies.
Secondly, if the farmers income is affected due to El Nino then the rural spending will also be impacted.
Banking- The credit off take can also be affected if the inflation rises and rural demand slows down.
Automobile- The tractor sales will be impacted if the agricultural produce is ruined as per stock market courses for beginners free.
You Ask, We Deliver: Fundamental Analysis of ION Exchange
Requested by: Manan from our ISMA 2.0 course, our share market training in Noida
About the company:
Ion Exchange is a pioneer in water, wastewater treatment & environment solutions and caters to various industries, institutions, homes & communities. The company is one of very few companies worldwide with complete range of solutions for Water, Wastewater Treatment, Solid Waste Management and Waste to Energy.
The company has three segments:
1. Engineering- It provides complete solutions in water & waste treatment. It derives 58% of revenues from this segment.
2.Chemicals- It provides range of resins, specialty chemicals. It derives 34% of revenues from this segment.
3.Consumer Products- It provides safe drinking water and a clean environment to individuals and Institutions.
Marquee Clients
The company has several marquee clients -NTPC, Reliance, JSW, IRCTC, BHEL, Tata Group, Taj Hotels, Holiday Inn, Hyatt Regency, Oberoi Hotels, Apollo Hospitals and Unilever Group etc. The group also caters to players in other sectors such as auto, food and beverages, paper, pharma, chemical and cement.
The company also has long term relationship with some of these clients and the company provides products according to the client’s personalized needs. This results in customer stickiness.
Strong Demand
Robust governmental initiatives, such as the Atal Mission for Rejuvenation and Urban Transformation, National Mission for Clean Ganga, Jal Jeevan Mission, and community drinking water schemes contribute to the growth of the Indian water and wastewater treatment market.
Innovation
It has developed a new product which removes Uranium from the Ground water, and the cost-effective method has got good traction in the rural area.
Strong Order book
The company has total order book of ₹2923 crore, including the Sri Lanka and UP projects, provides a strong visibility.
Expanding ROCE
The company’s ROCE in the last 8 years has steadily expanded from 17% to 36%.
Risks- Delay in execution of the Sri Lanka project due to economic crisis and political unrest.
What its financial sheet says as per stock market courses online with certificate?
Pros:
- Has a very good brand loyalty, and no govt risk as stock market training institute
- ROCE 5Yr is 35.2 % which is great
- Interest Coverage ratio is 29.1 which is very good, Interest is in control.
- Company has a healthy EPS trend and has given dividends consistently.
- FIIs & DIIs stake has increased (from 2020) which is a good sign as per best stock market courses
- Free Cash Flow of past 5 Yrs is ₹ 432 Cr, which is a good sign considering it is in positive.
- Compounded Profit Growth of 41% which is exceptional as per online share market courses.
Cons:
- Has some RnD risk stock market courses for beginners free
- Promoter holding is at 27.0 % which is little concerning.
- Sales growth of past 5 Years is 9.34%, which is above average for the sector.
- Other Income is slightly higher than it should be.
Valuation:
- The stock is trading above its 200 Daily Moving Average.
- The stock P/E (25.4) is at par to its sectoral PE (24.4).
Technicals
The company is in a strong uptrend and outperformed Nifty by a great margin as per charts analysed by stock market course in noida
Question of the Week #13
Q. Which of the following commodities CAN NOT be traded in MCX (Commodity Market Exchange in India)
- Gold Petal
- Aluminium
- Black Pepper
- Wheat
Answer to Week#12 was Option 2: SEBI cannot protect investors from Circuits.
**Make sure you note your choices somewhere as we will covering the answers in our next issue…
Word of the week
AUM: AUM or Asset under Management is the total money that is invested in a mutual fund scheme. AUM should not be too low (not many people are invested into it) and not too high (fund manager will face issue in investing in small and mid-cap stocks). Thus, Expense Ratio and XIRR must also be taken into picture along with Exit load as per stock market courses online with certificate.
