Tit - bits

#As expected the scrip of Hathway Cable and Datacom Ltd, hit the buyer freeze at Rs.21.40 on the news of the launch of JoFibre. If you remember the scrip was recommended in this blog around Rs.18.80/19.10 ranges.

#The stock of  P C Jewellers Ltd (Rs. 27.65) today fell with low volumes, indicating a probable end of the corrective phase. You should accumulate the scrip in every decline for short term targets of Rs.37/41.

It is India's 2nd largest Jewellery company and has a good number retail stores and hence you are not throwing your money in a drain.

Meanwhile, India February Gold futures rose on December 5 on the worries regarding an early settlement of Sino-US trade deal. Many eperts are suggesting  investors to use "Buy - on - dips strategy", as long as Gold trades above Rs. 38,000 levels.

#Buy the scrip of Wockhardt Ltd at around

Photo: Fierce Pharma

Rs.251/255 for short term targets of Rs.317/291. A deal is brewing in the short which can propel the scrip up-to Rs.500 levels in the medium term.

Moneycontrol last month reported that the drugmaker Cipla Ltd could be a front-runner to acquire select business segments of Wockhardt Ltd (Rs.251).

According to the sources,  Wockhardt Ltd, wants to reduce its debt burden and is seeking a valuation between Rs.2,400 crore and Rs.2,700 crore.

So far, its promoters have been infusing funds to ensure that the company doesn’t default on its debt repayment obligations. In FY19, they infused Rs.250 crore in the form of redeemable preference shares, in order to refinance the company’s outstanding preference debt.

The company, during the half year ended September 30, 2019, said it had repaid Rs.408 crore towards various long term debt obligations as per schedule.

Total long term outstanding debts as on September 20, 2019 were Rs.2,098 crore as compared to Rs.2,789 crore as on September 30, 2018 and Rs.2,469 crore as on 31st March, 2019.

Its gross debt to equity ratio as on September 2019 stood at 0.94. Promoters have so far pledged totally 5.06% of total share capital of the company (comprising of 56 lakh equity shares) on various dates which includes pledge created on 8.5 lakh shares on November 20 this year.

Wockhardt employs over 7,000 people and has a presence in the US, UK, Ireland, Switzerland, France, Mexico, Russia and many other countries. Around 72% of the company’s revenues comes from exports. Therefore, depreciation of INR Vs USD is positive for the company.

Bibliography: Moneycontrol