Date:26-12-2024 Time: 12:12PM CMP: 409 Report by : Mujadid Saad Evaluation of J.G. Chemicals Ltd for Long-Term Investment 1. Financial Health • Revenue Growth: Revenue grew from ₹398 Cr (Mar 2020) to ₹757 Cr (TTM), with a notable dip in FY 2024 (₹666 Cr). TTM shows recovery. • Net Profit Margin: Improved from ~3.5% (Mar 2020) to ~7.5% (Mar 2024), reflecting better operational efficiency. • Debt-to-Equity Ratio: Reduced to 0.03, indicating financial prudence. • ROE: Declined from 20% (3-year avg.) to 10% last year, suggesting recent inefficiencies. • Free Cash Flow: Significant positive shift to ₹76 Cr (Mar 2024) from marginal levels earlier. • EPS: Fluctuating, with recent growth to ₹14.65 (TTM). Dividend payout remains nil. 2. Market Position • Market Share: Largest zinc oxide manufacturer in India with 30% share; global top 10 producer. • Competitive Positioning: Leader in the sector, leveraging advanced French process technology. • Customer Loyalty & Innovation: Stable but needs further emphasis on innovative applications for diversification. 3. Management and Governance • Leadership Track Record: Stable leadership but lacking aggressive expansion strategies. • Governance: No significant red flags, though dividend policy may signal management conservatism. • Litigation/Ethical Concerns: No notable controversies observed. 4. Industry Trends • Growth Outlook: Positive, driven by increased demand for zinc oxide in industrial and cosmetic applications. • Emerging Trends: Limited focus on ESG initiatives and digital transformation, which are becoming critical in global markets. • Macroeconomic Factors: Vulnerable to commodity price volatility, regulatory changes, and inflation. 5. Risk Analysis • Market Volatility: Sensitive to zinc price fluctuations. • Operational Inefficiencies: Decline in recent ROE and revenue suggests areas of improvement. • Geopolitical Factors: Export reliance makes it prone to global trade dynamics and regulatory risks. 6. Valuation • P/E Ratio: At 29.9, below industry average (34.6), indicating reasonable valuation. • P/B Ratio: Higher than peers but supported by leadership position. • Overall: Stock appears fairly valued with potential for growth. 7. Performance Metrics • ROI/ROA: Moderately improving; needs consistent growth. • CAGR: Sales CAGR at ~15% (3 years); profit CAGR at ~12%. • Achievements: Market leader with improved cash flow and reduced debt. Investment Decision: Yes Justification: 1. Market Leadership: Dominant position with 30% market share in India. 2. Financial Prudence: Strong debt reduction and improving cash flows. 3. Valuation: Fairly valued relative to peers with potential upside as industry demand grows. 4. Growth Prospects: Supported by recovery trends in revenue and net profit. Recommendations for Further Due Diligence: • Analyze customer concentration risks and reliance on exports. • Assess plans for diversification and ESG adoption. • Monitor upcoming quarterly results for sustained recovery in financials.
Tether fud is what we needed . That just makes me more bullish. Starting from the next week i think btc will start to show who she really is . Prepare for the next leg up , it will melt faces . Those who sold now will regret for their entire life. The best is yet to come . If u think this run is over ,then this is your first bull run.
If we dip below .29 we may likely see .20. Short term prediction. Still very bullish macro.
Gold is now stuck between 70 pips of range and we have our supply over 2620-2624 and demand over 2613-2619 The last candle was bullish so we have 3 scenarios for this condition FISRT- If new candle break over our supply zone then we can take buy 120 Pips SECOND- If opening candle rejects our supply zone then we can take sell in the range of 90 Pips THIRD- After rejecting of candle continued to sell and breaks over our demand then we can sell more which make our sell target to 200 Pips NOTE: As this is the end of year so try to use small lots in the zone BEST OF LUCK TRADERS
I am getting long NSE:ACI on this channel break. Starting my position with less than 1% of my account as I believe it will continue lower with the trend. As always, I will continue to add on the next signals.
In NASDAQ:OMGA long. Heavy in this one as I have been in the position for about 2 months, adding on the channel breaks as price goes lower. Currently in at 3% of my account and I am willing to add on this channel break Monday morning if the market opens above it. I am averaged in at about $1.00 meaning I am currently sitting in about 20% drawdown. If prices go lower, I will continue to add gradually until 6% of my account is in the play
Hi traders, Last week SPX500USD made a correction up and retested the whole Daily FVG above. After that this pair dropped again. Next week we could see a correction up and another drop. Trade idea: Wait for the correction up and retest into the 4H FVG's. After a change in orderflow to bearish, you could trade shorts. If you want to see more from my analysis, please make sure to follow me, give a boost and respectful comment. This shared post is only my point of view on what could be the next move in this pair based on my analysis. I do not provide trade signals. Don't be emotional, just trade! Eduwave
The analyst believes that the price of { ADAUSD } will increase in the next 24 hours. This prediction is based on quantitative analysis of the price trend. Please note that the specified take-profit level does not imply a prediction that the price will reach that point. In this framework of analysis and trading, unlike the stop-loss, which is mandatory, setting a take-profit level is optional. Whether the price reaches the take-profit level or not is of no significance, as the results are calculated based on the start and end times. The take-profit level merely indicates the potential maximum price fluctuation within that time frame.
Dear Friends, How I see it: Possible correction. Strong 3W Rejection "Pin Bar ", closed below 100k. I deeply appreciate you taking the time to study my analysis and point of view.
I am long NASDAQ:MRNA with slightly less than 1% of my account. Really strong downtrend but I entered on the channel break which signifies weaker bearish sentiment. I will add up to 5% on this play as prices continue lower