What sensational did you miss this week?
- NSE Indices Ltd. launched India’s first-ever Real Estate Investment Trust (REIT) and Infrastructure Investment Trust (InvIT) index — Nifty REITs and InvITs Index.
- Retail inflation (CPI) in India stood at 5.66% in March 2023 as compared to 6.95% in March 2022.
What can you learn from this?
- The index launched by the division of NSE has 57.5% weight to realty, 35.6% to power and 6.8% to services. The top constituents of Nifty REIT & InvITs index include Embassy Office Parks REIT (32.9% weight), Powergrid Infrastructure Investment (20.2%), Mindspace Business Parks REIT (15.3%), India Grid Trust (15.3%). Calculation of the risk involved in the asset by lessons from share market training in Noida.
- Understand the relation between Inflation and stock markets by analysing news and market movements, which is taught in depth in a stock market courses online with certificate.
Focused Story of the Week: Fed Meeting Highlights
Fed decided to hike rates by 0.25%. This takes the interest rates to 4.75%-5% which is very high for a developed country like the US.
Fed expects the banking turmoil to cause a recession in later this year. The Fed also highlighted that the banking turmoil is limited to only small banks with poor risk-management practices.
The Committee is strongly committed to returning inflation to its 2 percent objective. But “The process of getting inflation back down to 2% has a long way to go and is likely to be bumpy,” the central bank leader said.
You Ask, We Deliver: Fundamental Analysis of KRBL Ltd.
Requested by: Shailesh2692#9249 from our share market training in Noida
SECTOR: FMCG INDUSTRY: PACKAGED FOODS
Important about the stock as per stock market training institute:
- KRBL is the largest exporter of Basmati Rice from India and India’s first integrated rice company. 35 Basmati seeds sown in India are provided by KRBL. It is also India’s first integrated rice company and possesses world’s largest rice milling plant in Punjab, India spread across 200 acres. It has fully integrated operations in every aspect of basmati value chain, right from seed development, contract farming, procurement of paddy, storage, processing, packaging, branding, and marketing. KRBL’s growing portfolio of the health food segment is to propel growth.
- With 77 Mn Indians living with diabetes & an equal number expected to be pre-diabetic, KRBL further strengthens its health portfolio, by launching a Diabetic Friendly Rice INDIA GATE SUGAR WATCHERS.
- The company has launched brown rice recently.
- The company also commands leadership in various markets around the world.
So, we can see that the company has brought in new products to cater to new segments and along with that it commands leadership in the segments it operates. So as per stock market courses online with certificate, the stock portrays strong fundamentals of the company.
As per share market training in Noida, what its financial sheet says?
Pros:
- Has a very good brand loyalty, and no govt or RnD risk, as per the qualitative analysis from best stock market courses
- ROCE 5Yr is 19.6 % which is decent.
- Interest Coverage ratio is 87.2 which is exceptional, Interest and Other Income also in check.
- Company has a healthy EPS trend and has given dividends consistently
- Promoter holding is at 60.0 %, FII’s stake has increased which is a good sign
- Free Cash Flow of past 5 Yrs is ₹ 1,932 Cr, which is a good sign considering it is in positive.
Cons:
- Sales growth of past 5 Years is 6.01%, which is below average for the sector
- Compounded Profit Growth of 5% which is concerning
- In FY22, company exported 23% of total exports to Iran & currently Iran has stopped buying Indian tea, basmati rice.
Valuation as per share market training in Noida:
- The stock is trading below its 200 Daily Moving Average.
- The stock P/E (11.6) is very much below its sectoral PE (43.9).
But if everything is so good. Why the company commands a very low PE?
Management Analysis as per stock market courses online with certificate:
Market is always superior, and market knows everything. The management of the company has been repeatedly engaged in some fraudulent activities. This poses a serious red flag as per our stock market training institute.
Question of the Week #12
Q. SEBI cannot protect investors from:
- Frauds
- Circuits
- Operator Manipulation
- Pump and Dump Schemes
Answer to Week#11 was Option B: Exponential Moving Average gives more weightage to the current price than Moving Average. This is taught in Technical Analysis in online share market courses.
**Make sure you note your choices somewhere as we will covering the answers in our next issue…
Word of the Week
REITs: Type of Investment Asset in which real estate properties are leased & rental income is distributed amongst shareholders. It is a very good diversification asset for bigger portfolios as per share market training in Noida.
