Gammon Infra - CMP 4.9 - Dated10th April 2017

Gammon Infra has given a breakout at Daily and weekly charts and long term charts of Gammon also look very interesting.

Target 1 -6.3, Target 2 - 9 rupees which is 50% higher from First target.

Looking at chart setup Gammon Infra has good upside and reach target of 9 Rupee in next 2-3 Quarters. Fundamentally stock is week as per my understanding and the Management is doing lots of things to improve the fundamentals. They are Selling part of their infra portfolio to reduce the debts.

Disclosure: Analysis is only for study(Educational in Nature) and should not be treated as a call to buy. 

Gammon Infra Daily Chart

Gammon Infra Weekly chart

Sanwaria Agro - CMP 10.9 - 10th April 2017

Starting this post with a disclaimer that I am a student of the stock market. After having achieved mediocre returns from the time I have started Investing(Tips and Reports), I decided to study Technical Analysis. After Studying online resources on Internet was always confused on how much to study and what to Study for Instance Candle Stick Charting, Bar Charting, then comes all the Technical Indicators like RSI, Bollinger Band, MACD, SMA, EMA and what not.

January 2017, decided to cut out the noice and focus on Basics and started studying the Break out Patterns like Triangle breakout, Downward Sloping Trend lines, Upward sloping Trend lines, Supports & Resistances.

Just by Focusing on few things my performance of stock-picking improved a little, I then thought of Documenting my learning and started this blog.

For next week, it seem Nifty trends is downwards but I will stick my neck out and post two stocks Sanwaria Agro and Gammon Infra(In another post) to see how my stock picking does in Down Market.

These are not Recommendations to Buy the stock given in the Blog. This only for study and help you learn the fundamentals of Technical Analysis.

Sanwaria Agro - CMP 10.9 - has broken out on Daily and weekly Charts.

Target 2 - 24.3 in 2 Quarters.

Sarla Performance Fibers - CMP 61 Dated 3April2016

Sarla Performance Fibers

Technical View
Sarla Performance is trading in uptrend channel with support of 71 and Resistance of 75, if it manages to break the channel next targets would be 90 and 101 Respectively based on historical pattern.  RSI is trending above 60

Sarla Performance Daily Chart

Fundamental View
arla Performance Fibers Limited is a leading exporter of Regular as well as High Tenacity Polyester and Nylon Yarns. It started operations 22 years ago as a commodity. SPFL is in the business of manufacturing and distribution of high value added polyester yarn and nylon yarn. SPFL, a 100% export oriented company has multi geographical presence in over 40 countries located in six continents. SPFL has branded clientele in its platter like- Hanes Brands, Gildan, Renfro, American & Efird, Delta Galil, Coats & Jockey. SPFL focuses to expand its global client base. For that they have one marketing centre at Portugal and two distribution centres at Thailand and Vietnam.
SPFL plans to increase its capacity from 9,900 TPA to ~18,000 TPA by End of FY17 and improve utilisation of it plants to 100% from current 30-35%.The company benefits from the duty free exports of goods manufactured inside the US as per NAFTA and CAFTA . CAFTA nullifies all tariffs on over 80 per cent of the US manufactured goods. Due to this, it is in advantageous position as it doesn't have to pay 32 per cent duty vs the other exporters to the US. It is in process to expand the installed Capacity from current 1.5 TPD by four times to 6 TPD for which SPFL will spend around 10 Crores.
In last one year company has invested 3 Crores in Mutual Funds and 5 Crores and Invested 5 Crores in Tata Motor Finance.
It has 1.94 Crore in Reserves and additional 24 Lacs in Share like Arvind Mills, Larson and Turbo , LIC housing, Punjab and National Bank, Hikal and Syngene international. It has cash and Cash Equivalent of 3.3 Crores.

Operations: During the year under review the sales of the Company were Rs. 25,594.13 Lacs as against Rs. 27762.73 Lacs in 2014-15 a slight decline of 7.81 %. The FOB value of exports
Rs. 15,193.24 Lacs compared to Rs 15,693.58 Lacs.
Profitability: The profit before Depreciation, Interest & Tax was Rs. 7,197.69 Lacs as compared to Rs. 5,646.31 Lacs In Previous year, after providing for depreciation of Rs. 1,014.40 Lacs (Previous Year Rs. 913.55 Lacs) & provision for taxation of Rs. 1207.10 Lacs (Previous Year Rs. 1,283.60 Lacs), there was a net profit of Rs. 4,265.83 Lacs as compared to Rs. 2,967.94 Lacs in the Previous Year.

It has an installed capacity of 11,900 tons per annum for manufacturing yarns in Silvassa and 3200 tons per annum for a Dyeing unit at Vapi. Its state of the art 30 tons per day POY plant in Walterboro, South Carolina in the US is now fully stabilized and operating at 30% plus capacity. The company’s emphasis this year will be to focus on increased capacity utilization at its US plant, enhance the proportion of niche end user applications in India, higher value added yarns to leading global apparel brands and companies. The company exports to 45 countries.SPFL also owns Wind Power Capacity of 10.25 MW in totality, out of which 6 MW is located in the state of Maharashtra, 1.25 MW is located in the state of Gujarat and 3 MW is located in the state of Madhya Pradesh. Our plant load factor for the fiscal year 2016 was about 23%. Going forward company plans to increase the load factor to 100% to fully ustilize the capacity which augurs well for company. 

Keeping above factors in mind SPFL will perform well in next 2-3 years, I have personally invested in the stock with Target of 160 rupees in 18-24 months time. 

Surat Textile Mills - CMP 3.99 Dated 30March2017

Surat  Textile Mills -  BSE Code - 530185 Recomended @ 3.99

Surat Textile Daily Chart

Surat Textile Mills Ltd  Weekly Chart

Technical View

May 08 2017 : Surat Textile Mills has given a channel break out above 6.4. check the following chart, Closing above 6.4 on closing basis Surat can double in 6 months time from here. check the chart here -  https://invst.ly/3wseo

April 01 2017 - Surat Textile Mills is oscillating between 3.8 and 5. There is strong Support at 3.78 - 3.95 and Resistance at 5.  Keep a keen watch on the stock as it is bottoming out and is bottom of the Range. 

Nov2016 - Technically  Surat Textile Mills (STM) gave out a breakout from downward channel and reversed the trend on 23rd of September with Good volume to Close on 4.1 to touch a high of 5.2 Rupees. after the break the stock is consolidating in narrow range of 4.4 and 5 which will augur well for STM. 

Fundamental View

Surat Textile Mills Limited is engaged in the manufacturing and selling of polyester filament yarn, polyester chips and spun yarn. The Company operates through three segments: Yarns, Art & Artifacts, and Construction. The Company produces ring spun yarn for domestic market in various ranges, such as 100% polyester, 100% viscose, 100% modal, polyester viscose blend, polyester modal blend in count range of Ne30s to Ne 100s. The Company has doubling, two for one twister (TFO) and yarn gass singing plant with approximately 11,450 spindles in Khadoli village, Silvassa (Dadra and Nagar Haveli). The Company has its manufacturing facilities located at Vareli village, Taluka Palsana, Surat District, and Jolwa village, Taluka Palsana, Surat District.

The total revenue from opera ons for the year 2015-16 declined at `118.99 crore as compared to `129.84 crore in the previous year. The decline in revenue was primarily due to fall in Selling

Prices in tandem with fall in crude oil prices Our focus on operational efficiency with better working capital management and better network helped Company to remain competitive and improve our Earnings Before Interest, Deprecia ton and Tax (EBIDTA). EBIDTA for FY 16 was higher at `6.50 crore as compared to `5.54 crore in the previous year, registering a growth of about 17%. The profi t a? er tax for the FY 2016 also increased to `6.13 crore as compared to `2.56 crore in the previous year. Despite challenging business environment your Company’s total sales of chips in volume was higher at 16094 MT for the year 2015-16 as compared to 9034 MT in the previous year. In value terms sale of chips for FY 16 was higher at `12861.15 Lacs as compared to `8755.56 Lacs in the previous year. The overall produc tion of Chips was higher at 16427 MT during the year 2015-16 as compared to 10062 MT achieved in the previous year.

Revenues Declined from 129.85 in 14-15 to 118.99 in 15-16 due to falling prices. Surat Textile Mills was EBITA positive due to increased focus on Operations efficiency. EBITA was at 6.6 Crores compared to 5.54 in Previous Years i.e. Growth of 17% Profit after Tax was 6.12 Crore to 2.56 Crore in previous year. Sales Volume Increased to 16094 MT from 9034 MT.

Company has repaid Secured Rupee Term Loan from banks to the tune of `51.16 Lacs during the fi nancial year 2015-16. Which will save on outgo of interest cost/finance cost which will lead to better profits in coming quarter. 

We should have a track Surat Textile closely as increased operational efficiency 

and reduced interest cost will give boost to NP of the company, makes it a long term bet with Govt focus on Textile sector with Labor reforms worth 6000 Crore. Our Target is 8.5 Rupees in next 3 Quarters.

Update:

In Q3 2016 Surat Textile gave a better than expected result in-spite of  Demonetization. It will definitely give a good Annual Results.

Update 5th May 2017:
Today Surat Textile has give a break out on Weekly and Monthly Basis, I am expecting a good result from Surat in Jan-Mar 2017 Quarter, post the result its EPS is going to more that double on Annual Basis which will take this share to its all time high of 8.2 in coming 2-3 Months. Stay put and hope you will enjoy the profits.

I will respond to .any .questions in Comments Sections. FOLLOW ME FOR MORE RECOMMENDATIONS. 

Disclaimer: This is not a call to buy / Sell the stock. I am trying and learn from stock market and this Analysis is only for Educational Purpose.