By -
Image
SumanSpeaks Independent Capital Markets & Geopolitical Intelligence  Small-Cap Steel · Capacity Expansion Story Vraj Iron & Steel at ₹126: A Small Mill Building a Much Bigger Ambition Trading close to book value, backed by a near debt-free balance sheet, and sitting on a freshly-approved ₹450 crore greenfield project in Bastar — Vraj is one of the few micro-caps where the next two years' capacity roadmap is already on paper. India's steel story runs through its infrastructure spend, and Vraj Iron & Steel Ltd (₹126) sits right inside that value chain. At around ₹126, the stock trades close to its book value of roughly ₹125-130 a share, at an earnings multiple near 12x. That is not an expensive tag for a company that has just commissioned new capacity, approved a new rolling mill, and greenlit a large greenfield expansion — all inside the last six months. The bigger story here is not what Vraj ear...
Post a Comment
By -

Q. Why the shares of Adani Wilmar Ltd (Rs.345) didn't perform too well in the recent past and how its future look?

Ans. I feel it fell primarily due to a couple of reasons, apart from other factors.

💢Adani Commodities and Lence Pte had to divest a part of their shareholding between December 26 to January 31, 2024. The two promoter entities of Adani Wilmar planned to sell up to 1.6 crore shares or 1.24% stake in the company as part of the programme to meet the minimum public shareholding norm prescribed by the SEBI. When such huge supplies come in the market all of a sudden, shares of the company are likely to fall. 

💢The company was not doing well till the September quarter due to sudden fall in inventory valuations. 

Now, the 1st episode is over, while the edible oil prices have stabilized in the international markets. 

However, according to the Economic Times, the companies like Adani Wilmar Ltd (Rs.343.50), Emami Agrotech and Sunvin Group said while disruption of Soyabean oil supplies, from Brazil and Argentina is driving up prices, mustard oil prices have risen as NAFED and HAFED have purchased large quantities of mustard seeds.

Also, the company has turned around in the last quarter and future looks bright due to NDA government coming at the center with which it has an umbilical cord relationship.

Also, due to ensuring Festival Season, the demand for edible oil and other FMCG products are set to increase. 

Incidentally, valuing a company solely by its P/E ratio is incorrect, particularly for a growing company like Adani Wilmar, which has a vast reach and numerous factories. Photo: Equity Bulls.

Buy at the CMP of Rs.345, T: Rs.700+, SL: Rs.311.

Comments

Post a Comment

Popular posts from this blog

By -
Image
Hikaru Nakamura and Atousa Pourkashiyan: A Checkmate in Love – A Grand Union Forged on the 64 - Squares.... Introduction: Hikaru Nakamura, a name synonymous with modern chess, is a prodigy-turned-legend whose brilliance has redefined the contours of the game.  A five-time U.S. Champion, his fearless strategies and dynamic online presence have made him an unparalleled force in the chess world. In 2023, however, the grandmaster made headlines for a personal milestone: his marriage to the courageous and equally accomplished chess player, Atousa Pourkashiyan. Atousa, a Women's Grandmaster (WGM), is a celebrated chess player and a symbol of resilience. Her bold decision to compete without a hijab during the 2022 World Rapid and Blitz Championship became a landmark moment in the global spotlight. This act was a direct expression of solidarity with the Mahsa Amini protests in Iran, where women have continued to fight against oppressive mandates, demanding the freedom to choose their attir...
Read more
By -
Image
Critical Red Flags at Rajesh Exports Ltd – Shift to Z Group Signals Deep Governance Issues. ~Sumon Mukhopadhyay. ------------------------------------ Company: Rajesh Exports Ltd (Rs.180.35). Date: January 5, 2026. Subject: Non-Compliance Leading to Z Group Classification and Investor Risks. =============== Executive Summary: A Major Regulatory Warning: As of early January 2026, Rajesh Exports has been reclassified into the Z Group (BZ Series) on both BSE and NSE. This punitive category is reserved for companies with serious compliance failures. The primary trigger: Persistent delay in submitting the Reconciliation of Share Capital Audit Report (required under Regulation 76 of SEBI's Depositories and Participants Regulations) for multiple consecutive quarters, including those ended June and September 2025. This isn't just administrative oversight—it's a serious red flag indicating potential mismatches between issued shares, demat holdings, and company record...
Read more
By -
Image
SYRMA SGS Technology Ltd (Rs.611); P owering Growth Through Data Centers and Medical Devices with Its New Pune Facility. Introduction : Syrma SGS Technology Ltd (Rs.611) is making strategic moves in high-growth sectors such as data centers and medical devices, positioning itself as a leader in the electronics manufacturing industry.  The company's newly inaugurated Pune facility is set to become a key driver of revenue growth and market expansion. This development not only supports Syrma’s commitment to the data center and healthcare industries but also enhances shareholder value through innovation and scalability. Photo : Business Line. ---------------------------------- Key Facility Details: Revolutionizing Operations Facility Scale: Spanning 26.5 acres, the new campus is designed to support 1.20 million square feet of manufacturing space, with 60,000 square feet operational in Phase 1. Investment : ₹150 crore in Phase 1, with further investment planned to scale operations. Job C...
Read more