1. Dalmia India:
Angel Broking is overwhelmed towards the country’s leading cement company for the 42% feature as it has set a target of Rs. 2650. According to the brokerage, the corporate East and West is a game on the ramp of volume due to new additional powers. The company is in the midst of a capacity building strategy of roughly ~ 8MTPA (~ 5.4MTPA on FY22E and ~ 2.6MTPA on FY23E, mainly in East and Murali) that could improve going forward.
Well-defined capital allocation coverage, strong demand setting will help future price efficiency
“Furthermore, the company has set a clear capital allocation policy and plans to increase its capacity by 15% CAGR and reach 110-130 MTPA by FY”, the brokerage report noted. Brokers believe that the demand setting tends to remain tight due to the incentive of infrastructural spending. “We expect cement volume CAGR to be around 12% in FY-2E due to strong demand and capacity exploitation,” the report added.
2. Safari industry:
The brokerage agency offers a ‘buy’ score to the main baggage firm Safari Industries. Direct instructions indicate that a management space in a public transport and moving from unorganized sector to organized home can be convenient for baggage manufacturer.
The broad distribution community, centralized product strategies and diversified products combine to support development:
Achieving the firm’s distribution is commendable and to improve it, Safari has a centralized product strategy and a combination of diverse products that can facilitate and strengthen future development. “Safari will report strong top-line as well as bottom-line growth behind strong growth in the organized sector, broad distribution network, strong brands and promoter initiatives,” Angel Broking said in his report.
3. Galaxy Surfactants:
Brokerage agency Angel Broking is the market chief for oleo-chemical-based surfactants, betting on Galaxy surfactants and favoring a ‘buy’ worth Rs 1 million. 3594, upwards of 18% from the final traded price by August 17, 2021.
Excessive Margin Specialty Care Merchandise, focus on increasing its contribution to the development of strong links with MNC
As much as the firm is working to increase its share of extra margin specialty care merchandise, it is now responsible for about 40% of corporate revenue and the rest is contributed by Skills Surfactant Enterprise. Moreover it supplies not only Indian but also international MNCs but also their cooking ingredients in the United States, EU and Mena area. “We expect fiscal year FY22 to register a strong growth due to the recovery in the exposure and specialty segment of the company’s personal and home care segment.”
4. Jindal Steel and Strength:
Angel Broking recommends a ‘buy’ in the inventory of Jindal Steel and Power, the country’s largest iron and metal firm. The international metal cycle, like many other products, has seen a change in developed countries due to the demand for normalization as the economies there have opened up after the Kovid risk. Now with the massive increase in demand, the price of metal in the world market has gone up.
The removal by Jindal Steel makes the corporate a ‘re-rating’ candidate
The company posted a good number of numbers in the last quarter of FY22 due to agency metal costs in the domestic market. This is even when all the low-cost iron ore from the corporate Saradha mine has been omitted. The debt of the firm is significantly Rs. 8000 crore in FY2022 which should be rebuilt within inventory. “At the current level the stock is trading at EV / EBIDTA of 4.0xFY2022 EBIDTA and paying the price due to the rise of the global steel cycle”, the brokerage report noted.
Disclaimer:
The shares listed in the article are taken from Angel Broking’s brokerage report and need not be understood as a funding recommendation. The firm and the creator will not be liable for any loss in the name of the funds taken on the basis of this report.