WEEKLY

REPORT

ISSUE – 2 DATE : 20-03-21

TABLE OF CONTENTS
• Long Term Fundamental Pick – ITC Limited

• Long Term Fundamental Pick – John Cockerill India Limited

• Long Term Fundamental Pick – Bajaj Consumer Care Limited

• Long Term Fundamental Pick – Galaxy Surfactants Limited

• Technical Charts with Levels and Support

• Update on Earlier Recommendation

• Stock with their trend in Last Trading Week

• Book of the Week

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 ITC LIMITED

ITC Limited is an Indian multinational conglomerate headquartered in Kolkata, West Bengal, and is one of the largest diversif ied
players in India with its presence in businesses such as cigarettes, FMCG, hotels, papers, packaged foods and confectionery, apparels,
stationery, and many products. The Company is the market leader in the domestic cigarette and is one of the largest hotel chains by
revenue and profitability, with a strong room inventory.

BUSINESS AREA OF COMPANY:

During the year first six decades of the Company's existence they were primarily devoted to the growth and consolidation of the
Cigarettes and Leaf Tobacco businesses, but later the seventies witnessed the beginnings of a corporate transformation. The Company
now has established a vibrant portfolio of 25 world-class Indian brands including Aashirvaad, Sunfeast, Yippee! Bingo! B
Natural, ITC Master Chef, Fabelle, Sunbean, Fiama, Engage, Vivel, Savlon, Classmate, Papercraft, Mangaldeep, Aim, and others. The
Company has spun off its information technology business into a wholly-owned subsidiary ITC Infotech India Ltd to pursue emerging
opportunities in this area.
During the period of Covid-19, the Company through its popular brand Savlon commenced the production of Savlon masks and
sanitizers and tied up with Zomato for “contactless” food delivery.ITC has been focusing on de-risking its business model by reducing
dependence on its core cigarette business by scaling up the fast-growing consumer goods and hotel businesses.
ITC's Branded Packaged Foods business is one of the fastest-growing food businesses in India, and also in key geographies of North
America, Africa, the Middle East, and Australia.
Recently, the Company has acquired a 100% stake in Sunrise Foods, launched a new range of fragrances, introduced unique “Dark
Milk” chocolate, entered into a strategic partnership with Amway, launched 70 new products in H1FY2021 which are registering good
robust growth.
 ITC LIMITED

FUNDAMENTALS OF THE COMPANY:

The Company has a Market Capitalization of around 2.50 lakh crores with 1,230 crores outstanding shares. LIC holds around
16.25% stake in the Company while Tobacco Manufacturers (India) Limited holds around 24.23% stake. 350 Mutual Funds
(aggregating to 9.35% stake), 866 Foreign Portfolio Investors (aggregating to 13.31% stake), 68 Insurance Companies
(aggregating to 21.57% stake), 126 Financial Institutions (aggregating to 8.01% stake) holds a stake in the Company. The
stock trades at 4 times the Book Value and at a PE Multiple of 18.24 against the Industry PE of 74.12 times.

The Company has reported an EPS of 11.14 times with an ROE of 23%-26% and continuously reporting ROCE of 32%-36%
over the past years.

Despite the Company being involved in such a diversified business with continuous R&D on the launching of new products,
the Company is a DEBT FREE Company and has consistently announced hefty dividends.
 ITC LIMITED

FINANCIALS :

Gross revenue stood flat at Rs. 11,976 crores as compared to Rs. 11,871cr during the quarter ended September-19. Profit
Before Tax stood decreased by 11% during the quarter to 4,274cr as compared to 4,807cr during the quarter ended
September-19.
Q2FY2021 performance of the Company was disrupted by localized lockdowns in South metros and large towns affecting
cigarette sales having a significant impact on the core cigarette business.

Non-cigarette FMCG Consolidated revenues grew by 16% during the quarter from 3,398cr in June-20 to 3,930cr in Sep-20.
Margins of non-cigarette FMCG are expected to increase in the coming years helped by an increase in the scale of new
launches and a better revenue mix.
Hotel business posted a sharp decline of 81% in revenue and is expected to underperform during the FY 20-21 owing to the
disruption in tourism and business however, the long-term potential of this sector is intact.
Essential consumer goods such as staples, noodles, biscuits, dairy, sanitizers, etc. witnessed robust demand and gained
market share. Manufacturing of these categories has scaled up to 100%. Most of these categories are registering robust
growth.
Revenue of the agricultural business grew by 12% y-o-y from 2,647cr during the quarter ending Sep-19 to 2,985cr during
the quarter ending Sep-19 driven by trading opportunities mainly in oilseeds and rice
 ITC LIMITED

RECENT UPDATE : ITC IS IN PROCESS OF READYING A DEMERGER PLAN INTO 3 COMPANIES :

➢ HOTELS
➢ FMCG
➢ INFOTECH
This event shall take a long period of time and thus is a stock for Investors and not traders.

As economic activities pick up the pace, we expect growth prospects to improve across all of ITC’s verticals in the months
ahead,

We recommend this Company on all above parameters at CMP of 222 and on dips, with our Targets of: -

Long term:- 50% to 80% from CMP in next 15 – 24 months. We would suggest adding this stock on all
dips or you can buy it in SIP form also.
 JOHN COCKERILL INDIA LIMITED
ITC LIMITED

John Cockerill India Ltd., formerly known as Flat Product Equipments (India) Limited {FPE} was incorporated in 1986 and
promoted by Late T.R. Mehta, Gold Medalist in Metallurgy and a leading Technocraft.
The Belgian Group CMI (Cockerill Maintenance & Ingenierie) completed the acquisition in 2008 and FPE was now renamed
to CMI FPE Limited.

BUSINESS AREA OF COMPANY:

The principal activities of the Company comprise of Manufacturing and Installation of cold rolling mills complexes,
processing lines, chemical processes, thermal processes and automation equipment for ferrous and non-ferrous industries
worldwide.
It caters its offerings to business, governments and communities engaged in the sector of Energy (Industry Boilers, Steam
Generators), Defence (Weapon Systems and Training Solutions), Environment (Water Treatment and Air Pollution
Treatment) and Transport and Infrastructure Services.

CORPORATE GOVERNANCE:

The Chairman – Mr.Joao Felix Da Silva , Managing Director – Mr. Vivek Bhide and Independent Director - Mr. D. J.
Balaji Rao have vast experience in different domains and are alumni of IIT & Harvard Business School.
 JOHN COCKERILL INDIA LIMITED
ITC LIMITED

FUNDAMENTALS :

The John Cockerill Group have presence in more than 22 countries spread over 5 Continents.
The Company has a Market Capitalization of 350-400 Crore and Dividend Yield of 0.69% (Latest Dividend was 50% i.e. Rs.5/- on
FV of Rs.10).
The Promoters (CMI – Belgian Group MNC) holds 75% of the stake in the company, while Mutual Fund (PGIM India Midcap
Opportunities Fund, currently 1.2%) and DII have been gradually increasing their stake every quarter.
The Company has a ROE of 11.92% and ROCE of 14.07% as per the latest financials.
The biggest positive factor for our Company is being Debt Free in spite of being in the business of manufacturing of Engineer ing
Products.

FINANCIALS :

During the Financial Year 2019-20, the Company recorded revenue from contracts of 34,873.58 lakhs as compared to 48,730.84 lakhs
in the previous Financial Year. Out of this revenue from contracts 63.86% came from Exports.
The Company registered a Profit after tax (PAT) of 2,374.50 lakhs in the year 2019- 20 as compared to 3,509.74 lakhs in the previous
Financial Year.
Due to Covid Pandemic, the Company had reported low turnover in Q1 & Q2 and has reported loss as per the latest financial reported
results.
The Company is pursuing new orders worth 700 crores from various domestic and overseas customers of which prospects worth 70
crores are in very advanced stage. Apart from this, the Company is working on back-up opportunities worth 1,000 crores.
 JOHN COCKERILL INDIA LIMITED
ITC LIMITED

LATEST RESULTS UPDATE :

The Company has reported great quarterly results, reflecting a strong revival of the business. The Company posted 491.34%
q-o-q basis in Revenue from Operations from 17.43cr in Sep-20 to 103.07cr in Dec-20. The decline in results on y-o-y basis
stands at 10%.PAT of 1.33cr has been reported as compared to Net Loss of 11.42cr in September-20. On comparison with
Dec-2019, the Company has reduced its Employee benefit expenses and Finance costs from 129.68cr in Dec-19 to 71.40cr in
Dec-20. The business is yet to reach pre-covid levels,but with strong revival back in business, good number for revenue and
PAT can be expected in coming quarters.

We recommend this Stock at CMP of 834 and dips till 710 with Closing basis SL of 670 and targets upto
1250 – 1500+ in 15 – 18 months.
 GALAXY SURFACTANTS
ITC LIMITED LIMITED

Galaxy Surfactants (GSL) incorporated in 1986, is one of the India’s leading manufacturers of surfactants and other specialty
ingredients for the personal care and home care industries. The Company’s products have a special place in a number of
applications in the space of consumer centric personal care and home care product. This includes skin care, oral care, hair
care, cosmetics, toiletries and detergent products. Over the years, Galaxy Surfactants has significantly expanded and
diversified its product portfolio, client base and geographical footprint with customers including some of the leading
multinational, regional and local players in the home and personal care industries. Currently, GSL’s product portfolio
comprises over 200 product grades, which are marketed to more than 1,700 customers in over 70 countries.

BUSINESS AREA OF COMPANY:

The products of the Company are organized into the following product groups:

➢ Performance Surfactants: The portfolio of performance surfactants comprises over 45 product grades, and includes
anionic surfactants and non-ionic surfactants; and

➢ Speciality Care Products: The Specialty Care Products group comprises over 155 product grades, and includes amphoteric
surfactants, cationic surfactants, UV filters, preservatives, preservative blends and surfactant blends, speciality ingredients
such as mild surfactants, syndet and transparent bathing bars and proteins, fatty alkanolamides and fatty acid esters, and
other care products
 GALAXY SURFACTANTS
ITC LIMITED LIMITED

GSL has evolved from being a local supplier to FMCG companies in India to being a global supplier to FMCG companies
across major geographies, such as India, AMET, Asia Pacific (APAC), Americas (North and South) and Europe.The
diversified customer base currently comprises multinational, regional and local FMCG companies, including, inter alia,
Cavinkare Private Limited, Colgate-Palmolive (India) Limited, Dabur India Limited, Henkel, Himalaya, L’ORÉAL, Procter
& Gamble Home Products Private Limited, Reckitt Benckiser and Unilever.
At present, it has 7 strategically-located manufacturing facilities, out of which 5 are located in India and 2 are located
overseas. The Company has set-up 1 pilot plant at Tarapur, Maharashtra and Jhagadia, for the scaling up of new products and
processes from lab-scale to plant-scale.
As on 31st Mar-20, the Company has 5 wholly owned subsidiaries in USA, Egypt, Mauritius and Germany for global
operations.

FUNDAMENTALS OF THE COMPANY:

The Company has a Market Capitalization of around 8,300 crores with equity size of 3.54 crores outstanding shares of Face
Value of Rs.10. The Promoter holds 70.93% stake in the Company, while Mutual Funds are holding 12.92% stake via 14
different schemes. FII’s hold around 3.49% stake, rest being held by Non Institutions.
The shares trades at 7 times the Book Value and at a PE Multiple of 29.20 times against the Industry PE of 63 times. The
Company has been continuously reporting ROE of 18%-20% and ROCE of around 25% over the past years. The Company is
also a Dividend paying from the past many years.
 GALAXY SURFACTANTS
ITC LIMITED LIMITED

FINANCIALS:

Consolidated Revenue from operations during the Financial Year 19-20 stood at 2596.38 crores against 2762.99 embarking a
de-growth of over 5%.
However, Profit before Tax showed growth with PBT of 288.84 crores in FY 19-20 as compared to 276.85crores reflecting
minor growth despite fall in revenue.
The business of the Company was not much impacted during Covid-19 as revenue was nearly pre-covid levels and the same
has been reflected during the first 3 quarters of FY 20-21.

On the basis of future growth in revenue of the Company, we recommend this Company on all above parameters at CMP of
2365 and on dips till 1900 with SL of 1700 on closing basis and our Targets of 3000 – 3200 in 12 to 15 months .
 BAJAJ CONSUMER CARE LIMITED
ITC LIMITED

Bajaj Consumer Care is an Indian Consumer Goods Company and part of the pioneer Bajaj Group, founded by Jamnalal
Bajaj. The history of Bajaj consumer care can be traced back to 1953, when Mr. Kamalnayan Bajaj established Bajaj
Sevashram to market and sell hair oils and other beauty products.Bajaj Consumer care today, is one of the largest player in
the overall hair oil segment with its key brand, Bajaj Almond Drops Hair Oil.

BUSINESS AREA OF COMPANY:

The Company being the largest player in the hair oil segment, holds a number of brands like Bajaj Amla Hair Oil, Bajaj
Jasmine Hair Oil, Bajaj Almond drops cool, Bajaj Kailash Parbat Thanda Tel with Bajaj Almond Drops Hair Oil being its
flagship brand. Slowly, over the period of years, the Company acquired Nomarks and entered into skin care products ranging
from Face Wash (Bajaj Nomarks for Dry Skin Face wash) to Fairness Creams (Bajaj Nomarks for Dry Skin Cream for
Blemish Free Glowing Fairness) to Soaps and Scrubs (Bajaj Almond Drops Moisturising Soap and Bajaj Nomarks Herbal
Scrub Soap) and many more products. The Company has now ventured into oral and Dental care brands like Bajaj Red Tooth
Powder (Red / Kala Dant Manajn)
The Company has set up eight production facilities including third party operations to cover footprints across India and
overseas. Broadly Hair oil & skin care products are manufactured at factories situated in Himachal Pradesh, Uttarakhand &
Guwahati regions.
 BAJAJ CONSUMER CARE LIMITED
ITC LIMITED

The Company has further incorporated subsidiaries in UAE and Bangladesh to ensure focused business and enter into global
markets.
With continuous R&D and with the purpose of creating innovative products for the customers, Bajaj Zero Grey Anti
Greying Hair Oil was launched on Ecommerce platforms and in select Pharmacy outlets earlier in April-2020.
Further during the pandemic, the Company had decided to enter the hand sanitizer market with a brand new product, the
Bajaj Nomarks Hand Sanitizer. The sanitizer marked the entry of Bajaj Consumer Care in the Personal Hygiene Segment
and diversification of the business.

FUNDAMENTALS OF THE COMPANY:

The Company has a Market Capitalization of around 3900 crores with equity size of 14.75 crores outstanding shares of Face
Value of Rs.1. The Promoter holds 38.04% stake in the Company, while Mutual Funds are holding 16.84% stake via 7
different schemes. FII’s hold around 24.80% stake, rest being held by Non Institutions and QIB.
The shares trades at 5.40 times the Book Value and at a PE Multiple of 20.67 times against the Industry PE of 63.67 times.
The Company has been continuously reporting ROE of 33%-45% and ROCE of around 50% over the past many years. The
Company is also a Dividend paying from the past many years.
 BAJAJ CONSUMER CARE LIMITED
ITC LIMITED

LASTES UPDATE :

Promoter level debt stood at Rs. 643 crore as on September 2019 with promoter’s pledge at 62.8% of its total shareholding. The
promoters of BCCL had sold ~22% stake in the secondary market in October 2019 for Rs. 700 crore. The promoters have repaid the
entire personal debt using the proceeds of the sale and with that, there are no pledges remaining on the stock. Thus, after the stake
sale, the promoter’s shareholding has come down to 38% from 60% earlier with no pledges.

FINANCIALS:

In FY 2019-20, the Company achieved revenue of 844.20 crores as compared to 909.35 crores in FY 2018-19 marking a de-growth
in revenue of around 8%.
The profits for the year before taxes remained at 230.88 crores in FY 2019-20 as compared to 288.26 crores in FY2018-19
registering a decline by around 20% in profitability.
The Company has Investments of approx. 446cr in Government Securities, Bonds and Mutual Funds with negligible borrowing of
20cr (being borrowing under ‘Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit’ for lower interest rates).

We recommend this Company on all above parameters at CMP of 268.60 and on dips till 200 with Closing basis SL of 176
with our Targets upto 550 – 640 in next 18 – 24 Months.
ICRA LIMITED
ITC LTD.
LAURAS LAB
GOKUL REFOILS SOLVENT LTD.
VISHNU CHEMICALS LTD.
 Update on Earlier Recommendation

Stock Name Recommended Recommended High post Percentage

Date Price Recommendation Returns

DELTA CORP 14/3/2021 188.3 201.95 7.24%

WELSPUN INDIA 14/3/2021 80.5 87.6 8.81%

INDOSTAR 14/3/2021 338.85 380 12.14%

DILIP BUILDCON 14/3/2021 653.6 SUPPORT ZONE -4.37%

BREACHED
MEGHMANI ORGANICS 14/3/2021 103.8 128.7 23.98%
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 Stock with their trend in Last Trading Week

STOCKS WITH DAILY TRENDING UP STOCKS DAILY CLOSING DOWN

No. Stock Name CMP No. Stock Name CMP

1 Visagar Polytex 0.95 1 CESC 608.20

2 Oil Country Tubular 5.85 2 Exide Industries 187.20

3 Deepak Fert – Petro 235.80

3 Dhampur Sugar Mills 180.15
4 Alkyl Amines Chem 5335.30
4 DIC India 395.90
5 Motor – General Fin 20.40
5 Bajaj Hindustan Sug 6.40
INVESTORS KNOWLEDGE

INVESTMENT SHOULD BE AN
ADDICTION, WITH AGE THE
SEGMENT OF INVESTMENT MAY
CHANGE , BUT NOT THE HABIT !!
INVESTORS KNOWLEDGE
A very special Thanks and Regards to all the members from :

Owner and Chief Advisor

Shreyansh Sheth

Technical Analyst Content Creator Research Analyst

Darpan Solanki Adesh Jain CA Divesh Jain
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