Introduction

Welspun Corp. engages in the manufacture of welded line pipes. It provides Longitudinal Submerged Arc Welded, Spiral Helical Submerged Arc Welded and Electric Resistance Welde pipes and High-frequency Induction Welded pipes. It also provides specialized coating, double jointing and bending facilities.

Observation

As we can see Bullish flag breakout along with last swing high which is 670 levels with good volume. stock trade above all the ema rsi cross 60 from below. If you see monthly chart stock shows a rounding bottom time correction breakout. after breakout stock can retrace till 670 levels for healthy upside move. This cyclical stock aligned with government action.

How to find net Asset Value of any Company? 📖

Advance learning 👇

Net Asset Value (NAV) Approach

Net Asset Value (NAV) Approach is a method used to value a company based on the value of its assets minus its liabilities. It's commonly used for valuing investment funds, such as mutual funds, or companies with significant tangible assets, like real estate firms.

Formula:$\text{NAV} = \frac{\text{Total Assets} - \text{Total Liabilities}}{\text{Number of Shares Outstanding}}$

Example:

Imagine a real estate company with the following financials:

• Total Assets: ₹1,000 crore (including real estate holdings, cash, etc.)
• Total Liabilities: ₹400 crore (loans, debt, etc.)
• Number of Shares Outstanding: 10 crores

NAV Calculation: $\text{NAV} = \frac{1,000 \text{ crore} - 400 \text{ crore}}{10 \text{ crore shares}}$NAV=10 crore shares1,000 crore−400 crore​ $\text{NAV} = \frac{600 \text{ crore}}{10 \text{ crore shares}}$NAV=10 crore shares600 crore​ $\text{NAV} = ₹60 \text{ per share}$NAV=₹60 per share

Interpretation:

• The NAV of ₹60 per share means that each share is backed by ₹60 worth of net assets.
• In practice: If the company’s shares are trading below ₹60, it might be considered undervalued, and if trading above, it might be seen as overvalued, depending on other factors like growth potential.

This method is straightforward but works best for companies with tangible assets. It's less effective for companies with significant intangible assets, like tech firms, where other valuation methods might be more appropriate.

Let's touch fundamentals

Stock PE is 15 which is all time low but stock trade ATH, ROCE 21.62, ROE 21.49, Which is healthy, Debt to equity is .035, Public holding 29%, promoter holding 50%, 

Technical Analysis & indicators 🔍

Bullish Flag

Rounding Bottom

Daily Chart

News of the day

1. Emami Consumer goods company has increased its stake in Cannis Lupus Services India to 47.43% from 30%, according to a Friday filing to the stock exchanges.Cannis Lupus Services India deals in the pet care segment offering ayurvedic and herbal remedies for pets under the brand Fur Ball Story.The rise in shareholding was a result of the conversion of compulsorily convertible preference shares of Cannis Lupus Services held by the company into equity shares.

2. Godrej Agrovet plans to set up a new Oil Palm Processing Milling in Tripura, India under its Oil Palm Plantation businessThe new unit will be set up in the Dhalai district of Tripura, where it already operates a nursery.The company will also set up an advanced Research & Development center for Oil Palm along with a Samadhan center to provide comprehensive support to oil palm farmers.

3. India's National Aluminium Company (NALCO) reported a 76% jump in first-quarter profit on Monday as the company benefitted from shrinking costs and higher prices for the metal.The state-owned firm's consolidated profit jumped to 5.88 billion rupees (₹588 crore in Indian rupees) year-on-year for the three months ended June 30.Global prices of base metals, including aluminium, rose sharply during the quarter due to supply concerns and rising demand, analysts said. Higher commodity prices tend to raise the selling price of metals, which help boost miners' margins.

Educational content

Tue Aug 13, 2024