The Sensex will hover between 45999 and 44111 in the new week

Nifty will fluctuate between 13555 and 12999

The market has long been in the overbought zone, requiring caution

The global economy is also on the verge of recovery in the hope that the end of the pandemic will come to an end with the success of global vaccine development efforts and the fact that more than 45 out of 200 vaccine candidates are front-runners and some of these vaccines are being approved by various countries. Global markets are booming. But with cases of new corona coming to the fore at an alarming rate in the United States, the fear of being forced to spend the Christmas lockdown this time around, and the uncertain results of vaccine research, there is always uncertainty as to when and which companies will have the exact vaccine. Under these circumstances, reports that the country is preparing for a network including distribution in various countries for vaccination have painted a picture of the end of the epidemic. But being cautious in the wake of this bullish storm, it would be advisable to book a profit now, realizing that the current record-breaking bullish streak has provided an invaluable opportunity for profit booking. It will not take long to create a scenario that makes it difficult to resell stocks in a sudden major correction as the market has been running in the overbought zone for a long time, so caution will be required.

Extensive inflows of foreign funds, IIP's October figures, inflation figures

With foreign funds-FPIs pouring heavily into Indian stock markets daily, it remains to be seen how long it will continue to stagnate and what the market will be like if it stops. With this, the development of the corona vaccine will be the main focus of global markets next week. India's Industrial Production Growth (IIP) for October will be released on Friday, December 11, 2020, and the General Consumer Price Index (CPI) for November will also be released on Friday. On the international front, US factory orders and inflation will be monitored next week as employment growth in the US slows. Along with this, global markets will keep an eye on China's November balance of trade figures and Japan's third-quarter GDP growth figures. Among these factors, the Sensex is likely to hover between 45999 to 44111 and the Nifty between 13555 and 12999 in the new week.

Dark Horse: Savita Oil Technologies Ltd.

BSE (524667), NSE (SOTL), listed, paid-up Rs. With an investment value of Rs.140 per share with an investment value of Rs.196.52 crore, the promoters have bought 5.31 lakh shares in buybacks in the last two years to increase their holding from 71.58 percent to 71.75%, ISO 14001: 2005 Certified, Savita Oil Technologies (SOTL) (formerly Savita Chemicals) Savita Oil Technologies Ltd. is a leader in petroleum specialty products in India. The company produces a wide range of Transformer Oils, Liquid Paraffins, White Oils, Automotive, and Industrial Lubricants, Coolants and Greases. Innovation-Innovative Focused Company and R&D Facilitated Company play a key role in developing Innovative Products and Solutions. The company is the only carbon positive petroleum specialty company in Asia. The company produces 110 million units of wind power annually.

Manufacturing capacity:

The company has world-class manufacturing facilities in Maharashtra and Silvassa Nagar Haveli and Daman and Diu Union Territories, with the company number one in the lube oil and lubricants category and number 42 in Fortune India and exports to 75 countries. The company also has windmills at 18 locations in Maharashtra, Tamil Nadu, and Karnataka with a capacity of 54.15 MW.

The company has a diversified product portfolio, which is used in industries including power generation and distribution, automotive, thermoplastic rubber, FMCG, plastics, pharmaceutical, agriculture, refrigeration, polymers. The company also has a notable BTB business. The company has a network of more than 52000 franchise dealers-workshops and 445 distributors.

Despite the lockdown in recent days, the company has continued to supply key raw material inputs to the pharmaceutical and power sectors.

Buyback-Dividend:

(1) In March 2018, the promoters increased their holdings from 71.58% to 71.63% by buying back a total of 280,000 shares at 25% dividend and 2% of the total paid-up equity at Rs.1605 per share.

(2) In June 2019, 25% dividend and 1.75% paid-up equity were again bought back at Rs.1605 per share for a total of 2,51,000 shares, and the promoter holding was increased from 71.63% to 71.75%.

(3) In March 2020, for the non-taxable year 2019-20, 200% dividend, 3% dividend yield was given. 

Shareholding pattern:

Holdings of Mehra Parivar-Promoters and Associates are 71.75%, Mutual Funds hold 11.66%, HDFC Trustee Company holds 9.07%, L&T Mutual Fund holds 2.59%, Foreign Portfolio Investors-FPIs have a stake of 4.3 And others have 4.05% and individual shareholders up to Rs 2 lakh have 8.16%.

Book value:

Rs.405.30 in March 2016, Rs.452.79 in March 2017, Rs.518.80 in March 2018, Rs.594.61 in March 2019, Rs.617.28 in March 2020, Rs.692 in expected March 2021 and Rs. .140 Expected Rs.832 with investment value

Mutual funds, investment value in stocks:

The company has a combined investment value of Rs 196.9 crore in mutual funds and stocks at Rs 139.66 per share.

EPS-earnings per share:

Rs.23.50 in 2016, Rs.64.11 in 2017, Rs.88.11 in 2018, Rs.79.80 in 2019, Rs.67.97 in 2020, Rs.74.76 in expected year 2021

Financial Outcome:

(1) Full year April 2019 to March 2020:

Net profit fell 10% to Rs 2,046.17 crore from Rs 2,262.52 crore, net profit fell 16% to Rs 95.64 crore from Rs 114.27 crore, full-year earnings per share of Rs 80.4 to Rs 68.

(2) Second Quarter from July 2020 to September 2020:

Net profit fell 11% to Rs 481.37 crore from Rs 541.94 crore, net profit rose 50% to Rs 37.62 crore from Rs 24.02 crore, and quarterly earnings per share stood at Rs 26.73.

(3) First Half Yearly from April 2020 to September 2020:

Net income fell 31% to Rs 744.34 crore from Rs 1047.42 crore, net profit fell 10% to Rs 48.32 crore from Rs 53.41 crore, and achieved 6 months earnings per share of Rs 34.34.

(4) Expected full-year April 2020 to March 2021:

The expected net income is Rs 1745.62 crore and the net profit is Rs 105.20 crore and the earnings per share is expected to be Rs 74.76.

(5) Valuation: B:

Even if we give the same P / E as the average P / E of the petrochemicals industry is 11 P / E, even if we give the same P / E, the valuation is single B.

THUS

(1) Holding 71.75% promoter holding

(2) Promoter holding increase by buying back 5.31 lakh shares at Rs.1605 per share in the last two years

(3) Mutual funds and stocks with an investment value of Rs 196.52 crore with a value of Rs 140 per share.

(4) Having 82.23% bonus equity in total equity through 2: 3 share bonus issue in the year 2006.

(5) The number one company in the lube oil and lubricants category and ranked 42nd in Fortune India and exports to 75 countries.

(6) Maharashtra, Tamil Nadu, and Karnataka with windmills at 18 locations with a capacity of 54.15 MW wind power generation and the only carbon positive petroleum specialty company in Asia.

(7) Expected full year from April 2020 to March 2021 with an expected book value of Rs.74.76 per share with an expected book value of Rs.692 and mutual fund and shares with an expected book value of Rs.140 per share. P / EA of 9.47 is available on BSE at Rs.708.35.

Manoj Shah: Research Analyst (SEBI REG. NO. INH000000107)

The author is a SEBI Registered Research Analyst: Disclosure cum (readers should take special note)

Warning

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