What kind of levels are you watching out for Nifty and what advice are you telling your HNI investors on approaching the market?
Nifty has been getting into a consolidation zone from February 2021 when it scaled the 15,000 mark. The level of 14,300 is acting as a support point for the index, while the hurdle is at 15,000. If Nifty closes above 15,000, then the 15,400-15,500 trajectory will open up. For Nifty Bank, that has not been performing as well as Nifty, 33,500 is the next hurdle. If we get a closing above those levels along with volumes, 34,000-34,300 will be the next levels for Nifty Bank.
is one of your stock picks. Can you explain why you like it and what kind of targets can be achieved if one were to have a horizon of 6-8 months?
The pharma space has started buzzing again due to the increase in Covid cases. Glenmark was consolidating within a range in the last few days. April numbers show that sales has increased by around 150% because of Fabiflu drug. I am expecting very great numbers from Q1 of FY22 as well. I am expecting great sales and EBITDA numbers in the coming days. I have a target of around Rs 750.
The entire ecosystem around sugar is also buzzing. You have Uttam Sugar Mills on your radar. How much money can one make if one one were to get into it right now?
Ethanol and sugar prices in countries like Brazil and Thailand have like gone up and so we are having good opportunities here in India. My selection of Uttam Sugar is based on a few parameters. Firstly, it belongs to the Uttam Group. Harnessing the full potential of sugarcane has enabled it to develop the most modern sugar complex in India with facilities to produce refined sugar, sulphur-less sugar, white plantation sugar, ethanol, etc. The company has successfully implemented incinerated boilers at their distillery units at Barkatpur. On the equity side, their capital is around Rs 38.14 crore and the reserves are very large at Rs 268 crore. The book value is going to work out at Rs 80.20. The promoter is holding around 75 per cent and some huge investors are also holding stakes.
During the 9 months of FY21, Uttam Sugar reported around 91.31% higher PAT of around Rs 32 crore and higher sales of around Rs 1,265 crore, fetching an EPS of around Rs 8.37. On current market price, it is trading at a PE ratio of around 8.15. The entire sugar space is doing good. I have a target of Rs 200 on Uttam Sugar and one should keep a stop loss at Rs 134 on the stock.
You have been tracking IOL Chemicals for sometime now. What kind of targets you have for the stock?
IOL Chemicals is the largest producer of ibuprofen and has around 30 per cent share in the global market. It is the largest producer of ethyl acetate at a single location in India. It is the second largest producer of Isobutylbenzene IBB, with 30 per cent share in global market. It has over 12 new products in the pipeline. During the 9 months of FY21, it recorded a PAT of Rs 369 crore on sales of Rs 1,506 crore, fetching an EPS of Rs 63.45. The stock is trading at a PE ratio of 8 and the company has recently pointed Dr Sanjay Chaturvedi as its CEO. He has a good experience in specialty chemicals. IOL Chemicals is ready to go upwards technically also. I have set a target of Rs 750 on the stock while a stop loss is placed around Rs 625 for the trade.