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Mumbai: Global inflation has been coming under control for some time now and last week there were reports of global central banks delaying the start of interest rate cuts as US inflation data again came in higher than expected. But the weekend again saw global markets rally behind US stock markets. Domestically, with India now busy preparing for the Lok Sabha elections, the Indian stock markets again saw normal gains over the weekend after index-based two-way swings. Local funds managing indices are keeping Sensex, Nifty higher as consolidation is not shaking the market sentiment. Even among small and midcap stocks, 70 percent of the shares are overvalued, despite caution in making new purchases, investors are being prevented from moving away from the market. Now keep an eye on the global market activities in the coming week, on February 22, the Reserve Bank of India and the US. The minutes of the most recent meeting of the Federal Reserve will be monitored. Along with this, geopolitical factors also influence the market and even a spark can shake the market sentiment. Therefore, caution will be necessary in making new purchases in shares at high prices. In the new week, fluctuations may be seen between Sensex 73111 to 71666 and Nifty spot 22222 to 217777.
Arjun's eyes: Prakash Industries Limited.
BSE (506022), NSE (Prakash), Rs 10 Paid-up Prakash Industries Limited (Prakash Industries Limited), started in 1980 with a focus on steel, power, mining businesses, is now fast leading in manufacturing value added Steel Products in Indian Steel Industry. Galli is emerging as one of the leading entrepreneurs. With technology intensive products, the company has moved forward with first mover advantage in a highly competitive and challenging industry, always producing products in an innovative way to reduce costs and maximize the utilization of resources. Moving forward with this strategy, the company established a state-of-the-art technology integrated steel plant at Champa Khas, Chhattisgarh. The company is continuously emphasizing on backward integration to ensure continuous supply of quality raw materials. The company has set up facilities for manufacturing Wire Rods, HB Wires and TMT Bars. The Company has its own Aryan Ore mines to meet the Company's Aryan Ore requirement for manufacturing Sponge Aryan.
Manufacturing Facilities: The company operates through five manufacturing plants. Of which three are in Chhattisgarh, one in Orissa and one in Tamil Nadu. Presently the company has a self-sufficient power generation plant and is completely self-sufficient in terms of power for the integrated steel plant and future expansion projects. For Aryan Ore, the raw material required for manufacturing steel products, the company was earlier supplying from private mines operating in Orissa. Now to achieve backward integration and reduce operating costs and ensure uninterrupted supply, the company has started sourcing Aryan Ore from Sirkaguttu mine in Keonjhar district of Odisha. This mine has been allotted to the company for 50 years. The company has over a decade of experience in operating coal mines in Chhattisgarh. At present the company meets its coal requirement mostly through long term coal linkage with SECL (a subsidiary of Coal India Company). The company plans to manage more coal mines in the near future with a focus on backward integration, considering expansion plans into sponge production and steel production at an integrated steel plant. The company has been allotted Bhaskarpara coal mine in Chhattisgarh, which has estimated reserves of 46.91 million tonnes of high grade coal. The company aims to commission the mine within the current financial year subject to regulatory approvals.
Prakash TMT Bars have high strength and ductility while maintaining the best surface finish and other features required for TMT Bars using the company's No Twist Block Technology. The company has set up wire rod and wire drawing facilities at Raipur-Chhattisgarh for manufacturing high quality wire rods as part of the process of forward integration. Additionally, the company's steel melting shop has an annual manufacturing capacity of 12.5 lakh tonnes of billets and blooms through the induction furnace route. The company is one of the largest manufacturers of ferro alloys in India. The annual production capacity of the company is 1.3 lakh tonnes. Keeping in mind the environmental protection, the company has established a wind power generation farm at Muppandal Khas in Tamil Nadu.
Book Value: Rs 161.89 in March 2021, Rs 157 in March 2022, Rs 165 in March 2023, Potential Rs 185 in March 2024, Potential Rs 208 in March 2025
Bonus History: 1:2 in 1992, 1:2 in 1995, thus the company has 14.53 per cent bonus equity of the total equity through bonus issue.
Share holding pattern: As of March 2021, promoters' stake in the company was 40.98 percent i.e. 7,33,84,732 shares. From April 2021 to March 2022, the promoters have increased their stake from 40.98 percent to 42.94 percent by purchasing 35,18,983 shares from the open market. Whereas from April 2022 to March 2023, the promoters again bought 6,63,182 shares from the open market and increased the holding to 43.31 percent. Whereas in the first nine months of the current financial year, from April 2023 to December 2023, the promoters' stake has increased to 44.24 percent i.e. a total of 7,92,223 shares by purchasing 16,60,323 more shares from the open market. Thus, in the last 33 months, promoters have increased their stake by 3.26 per cent from 40.98 per cent to 44.24 per cent by purchasing 58,42,491 shares from the open market. In the current financial year, promoters have increased their stake from 44.11 percent to 44.24 percent by purchasing 2,34,045 shares in the open market.
Major investors: Dolly Khanna holds 1.17 percent stake and Mukul Mahavir Aggarwal holds 1.4 percent stake in the company till December 2023.
financial result:
(1) Full year April 2022 to March 2023: Net income declined by 12.24 percent to Rs 3455 crore, Net profit margin-NPM increased by 5.51 percent to Rs 190.48 crore, Net profit increased by 12.83 percent to Rs 190.48 crore. – EPS has achieved Rs 10.64.
(2) Third quarter October 2023 to December 2023: Net income increased by 16.79 per cent to Rs 891.93 crore, with Met credit entitlement at Rs 13.70 crore and NPM at 9.03 per cent, net profit increased by 78 per cent to Rs 80.56 crore. Rs 4.49 per share has been recorded.
(3) First nine months April 2023 to December 2023: Net income increased by 16.35 per cent to Rs 2840.11 crore, including credit entitlement of Rs 45.28 crore and NPM increased by 9.13 per cent, with net profit increasing by 96 per cent to Rs 259.40 crore. Crore and achieved earnings of Rs 14.48 per share.
(4) Expected for full year April 2023 to March 2024: Full year earnings per share are expected to be Rs 20.14, with net income of Rs 3939 crore and net profit of Rs 361 crore.
(5) Expected full year April 2024 to March 2025: Earnings per share are expected to be Rs 23.40 from estimated net income of Rs 4530 crore and net profit of Rs 1490 crore.
Thus (1) The author has no investment in the shares of the above company. Authors may have direct or indirect personal vested interests in research sources. Consult a qualified investment financial advisor before making any investment decisions. The author, Gujarat Samachar or any other person will not be responsible for any possible loss on investment. (2) In the 33 months since March 2021, promoters' stake increased from 40.98 percent to 3.26 percent by purchasing 58,42,491 shares in the open market. . .24 per cent (3) 96 per cent increase in net profit for the first nine months April 2023 to December 2023 to achieve EPS of Rs 14.48 (4) Expected full year March 2024 to April 2025 Expected EPS of Rs 23.40 and expected book value Up from Rs 10 at Rs 208, the company's paid share is available at Rs 183 on NSE, BSE as of February 16, 2023, at a P/E of 7.82 against an industry average P/E of 20.