Financial Weekly

SMART 7th October to 12th October 2019 32

INVESTMENT

Investment Ideas telegram.me/rupeegains7

NIFTY
For next week NIFTY has strong support around 11130 levels. Break will take it to 11085-11000
levels. On the upper side NIFTY will face strong hurdle at 11275 levels, cross over with volume
and close above will create short covering at take NIFTY up to 11325-11410 levels…
BANK NIFTY
For next week BANK NIFTY has strong support around 27575 levels. Break will take it to 27250-
26950 levels. On the upper side BANK NIFTY will face strong hurdle at 28250 levels, cross over
with volume and close above will create short covering at take BANK NIFTY up to 28670-28750
levels…
INVESTMENT IDEAS…
ALKALI METALS LTD (533029 & NSE) (46) (F. V. Rs.10)
Alkali Metals is one of the leading Chemical suppliers in India and USA for industrial and spe-
cialty chemicals, raw materials and minerals. Being one of the top chemical manufacturing compa-
nies, company manufacture and supply chemicals to industries in multitude verticals. Company is
specialized Industrial Chemical Suppliers in providing its clients with fast and reliable chemical
shipments to enable a seamless flow of raw materials. Being the best Chemical suppliers in India
and USA, Company has profound experience in synthesizing chemicals economically and con-
tinuously.
It has an equity base of just Rs.10.18crore that is supported by reserve of around Rs.41.85. The
Promoters hold 69.64% while the investing public holds 30.36% stake in the company.
During Q1FY20, Company posted 31.77% higher income of Rs.21.36crore with 447.06% higher
PAT of Rs.1.86crore fetching an EPS of Rs.1.82.
Currently, the stock trades at a P/E of just 14.3x. Its recent high rate was Rs.106.4 which was
formed in January 2018. Stock almost corrected 57% from recent high. It paid 12% dividend for
FY19.
Alkali Metals Limited has received an Establishment Inspection Report (EIR) from United States
Food and Drug Administration (US FDA) for its Visakhapatnam Unit in Andhra Pradesh. The
Visakhapatnam unit manufactures Active Pharmaceutical Ingredients (APls) and other Chemical
intermediates. The EIR from USFDA indicates closure of the inspection and that the Unit is in
acceptable state of Compliance of Current Good Manufacturing Practice (CGMP). This is highly
beneficiary for Company's future.
Everyone, whose financial advisor is allowing to trade in this stock for medium to long term can
watch with a stop loss of Rs.36.
ALUFLUORIDE LTD (524634) (98.7) (F. V. Rs.10)
Alufluoride is the only Company in Andhra Pradesh producing high purity Aluminium Fluoride
(AlF3) with technology developed by Alusuisse, Switzerland. This technology facilitates conver-
sion of Fluorine effluents from Phosphatic Fertilizer Complex into Hydrofluosilicic Acid and then to
Financial Weekly

SMART 7th October to 12th October 2019 33

INVESTMENT
Aluminium Fluoride. The Company has an installed production capacity of 5000 tons of Aluminium
Fluoride per year and plans to expand further. The project ensues pollution abatement, import
substitution, conservation of natural resources like Fluorspar & Sulphur, cost effective production,
conversion of waste into wealth and earning valuable foreign exchange to the Nation. AlF3 is used
as flux in reducing the melting point of Alumina during the electrolytic process of producing Alu-
minium. Many Aluminium Smelters in India and abroad are using the Company's product with
repeat orders for increased quantities due to its quality and service.
It has an equity base of just Rs.7crore that is supported by reserve of around Rs.32.96. The
Promoters hold 59.29% while the investing public holds 40.71% stake in the company. Promoters
increased their stake by 5.69% during CYFY19 which is positive sign. During Q1FY20, Company
posted higher income of Rs.17.51crore with higher PAT of Rs.3.42crore fetching an EPS of Rs.4.43.
Currently, the stock trades at a P/E of just 8x. Its recent high rate was Rs.199 which was formed
in September 2018. Stock almost corrected 49% from recent high.
Everyone, whose financial advisor is allowing to trade in this stock for medium to long term can
watch with a stop loss of Rs.85.

Disclosures: At the time of writing this article, author, his clients & dependent family members may have
positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family
members may make purchases or sale of the securities mentioned in website. Author may have positions in
above stocks so have vested interest obviously in their going up or down as the case may be.
Disclaimer: Investing in any equity is risky. Our recommendations are based on reliable & authenticated
sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Inves-
tors should take their own decisions. We assume no responsibility for any transactions undertaken by them.
The author won't be liable or responsible for any legal or financial losses made by anybody.