Tit - bits

#Today I recommend Wockhardt Ltd (Rs. 250.05) for the short term on the media news that Cipla Ltd is in advanced talks with the company for a stake sale; which the latter wants to lap up.  

Wockhardt Ltd had a total debt of Rs.3,367 crore as on March 31, 2019 and its current market capitalisation stands at around Rs.2,767.82 crore. It has a diversified product portfolio with a presence in therapeutic segments such as cardiology, dermatology, diabetes, respiratory, etc. The catch Point is: it export portfolio is around 70%. I'm expecting the scrip to double from the current price within January,  2020.

#The stock price of P C Jewellers Ltd (Rs.27.50) is testing its immediate supports. With no definite news of signing of the US  - China Trade Deal,  the gold prices are likely to remain buoyant. 

Also,  the RBI has kept the Repo Rate unchanged, on inflation fear.  This is positive for the Gold sector. 

Source: BSE

Moreover, if the FM, Nirmala Sitaraman increases the IT limit for the Indians in the upcoming budget, then the 1st sector which will get a positive effect is the Retail.  The company has a number of retail stores all over India. 

Apart from this the current marriage season is likely to keep the bullion market buoyant. 

Gold prices in India are down about ₹2,000 per 10 gram from their September highs. This may lift retail demand of gold, say many analysts.

"With doubts emerging about a U.S.-China trade talk, we expect investor demand for safe-haven assets, such as gold-backed ETFs, to increase," an ANZ analysts said in a note.

In the International markets Gold gained about 15% so far this year, which could be its biggest annual gain since 2010, mainly bolstered by the impact of the prolonged U.S.-China trade war on the global economy.

Financials: The last two quarter results of P C Jewelers Ltd are not that bad as is made out to be. For H1FY20, the Cash EPS is Rs.2.69.

If we interpolate this figure for the whole year the cash EPS for FY20 comes around Rs.5.38. This easily gives a P/E oHYf around 5, which is much less than the industry P/E of around Rs.30. 

Now, if we apply this simple method of rough valuation to the share price of P C Jeweler Ltd, then the yearly target of the stock of P C Jeweller Ltd becomes Rs.167/170, which incidentally is near its 52 - week high price. 

After giving suitable discounts, we can get the approximate March - April price target of around Rs.117/121. 

Hence,  I would suggest the medium to long term investors to buy the scrip of P C Jeweller Ltd at the CMP of around Rs.27.50 and keep holding. 

Note: If you have a portfolio size of about Rs.3/5 lakhs and is finding difficulty in making money on consistent basis,  then you can go for my profit sharing scheme,  of 70:30 ratio between you and me. There is no compulsion nor any lock in period,   you can walk out of this process at any time,  if you are not happy.