Bought 425 now done T1 450 made high 454 done in one session
Hot stocks for the day and short term
SHORT TERM TRADE:-
BUY FROM - 615 - 616
STOPLOSS - 595
TARGET - 680
GRAPHITE: STEEL MINT REPORT SAYS GRAPHITE ELECTRODE PRICES WILL INCREASE BY APPROX. 6% FOR Q3FY22.
Positive for both #GRAPHITE & #HEG
India will global manufacturing hub for Electric Vehicle in next 5 years. Below are few companies to focus:
#GRAPHITE #HSCL #TATAPOWER
India will global manufacturing hub for EV in next 5 years. Below are few companies to focus:
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Data matics #DATAMATICS
Kaveri Seeds #KSCL
Laxmi Organics #LXCHEM
Why Graphite India, HEG Expect A Much Better Second Quarter
Shares of the makers of graphite electrodes, a key input for steelmaking, have surged in the past year as demand recovered, reversing two years of declines. The companies expect consumption to improve in the ongoing quarter. Prices of electrodes rose in the past year as the global economy recovered from the first round of lockdowns in early 2020. As a result, HEG Ltd. and Graphite India Ltd. Have jumped about threefold in the last year.
Q1 Cements Turnaround Operating income rose for both Indian graphite electrode makers in the quarter ended June. For Graphite India, it surged 35% sequentially, while HEG saw an 18% growth. It was driven by higher prices, which was partly offset by slightly lower electrode volumes during the second wave and higher commodity costs.
Margins are expected to improve substantially in the ongoing quarter due to depletion of high-cost electrode and needle coke inventory, Manish Gulati, executive director at HEG, said in an interview to BloombergQuint. He guided for 10-15% sequentially higher electrode prices and capacity utilisation.
Electrode prices rose 10% for both ultra-high-power and high-power grades in April-June. And he expects another 10-15% rise in the second quarter ending September on rising steel production through electric arc furnaces.
Higher Output, Demand Aid Prices
Prices rose because of higher production in North America, South America, European Union and the Middle East where steel scrap is recycled in electric arc furnaces. The global crude steel production excluding China surged 35.8% over a year earlier and 6.2% from the preceding quarter in the three months ended June, HEG’s management said in a conference call
All major steel-producing countries registered a sequential growth except India, where output declined 4.4% because of the second wave. Domestic demand for steel and electrodes, however, started rising from June as lockdowns were eased.
Demand for steel and electrodes is expected to rise in both domestic and international markets, KK Bangur, chairman at Graphite India, said in an analyst call after April-June earnings. Global crude steel production between January and June surpassed crossed 1,000 million tonnes, up 14% over a year earlier, according to World Steel Association data. The output outside China jumped 18%, while it rose 11% in China. What is encouraging is that the rest of the world steel production has outpaced growth in China, Ravi Jhunjhunwala, chairman, managing director and chief executive officer at HEG, said in an interview to BloombergQuint.
This augurs well as the rest of the world produces nearly half the steel via electric arc furnaces, he said.
The China Factor
Since 2016, China has closed about 300 million tonnes of outdated and highly polluting steel production capacity but around 908 million tonnes remain, according to Graphite India’s presentation. Such units are being replaced by environment friendly electric arc furnaces.
China also abolished 13% value-added tax on certain steel exports to reduce steel production and exports. Lower exports from the nation bodes well for other EAF steel-producing nations.
The nation’s steel exports are expected to fall under the government policy to cut or maintain crude steel output at 2020 levels as part of Beijing's goal to achieve carbon neutrality by 2060.
Other Factors Supporting Steel Output
Growth in EAF steel production globally is expected to drive demand for electrodes in the near term.
India’s increased spending on infrastructure and the revival of key sectors such as construction, mining, capital goods and automobiles will have a positive impact on steel production and electrodes demand.
Withdrawal of customs duty in India on scrap imports
Graphite India posted 19.14% growth in Q1 revenue YoY of Rs.610cr. Sequentially, revenue was up 7.96% compared to Rs.565 cr in Q4FY21. Co. makes electrodes for electric arc furnaces in the steel industry the demand for which has been growing and its bull trend is here to stay.
ICICIdirect.com target on GRAPHITE
Price @ Call: 637.5
Graphite India Ltd #GRAPHITE
Net Revenue at Rs. 565.0 crore, Rs. 602.0 crore YoY, Rs. 499.0 crore QoQ (-6.1% YoY, +13.2% QoQ).
EBITDA at Rs. 78.0 crore, Rs. -26.0 crore YoY, Rs. -74.0 crore QoQ.
EBITDA Margin at 13.8%, +1812 bps YoY and +2863 bps QoQ.
Net Profit at Rs. 64.0 crore, Rs. -7.0 crore YoY, Rs. 23.0 crore QoQ.
View: Result is improved. Finally company come out from black.
#LINCOLN Target - Checked
#GRAPHITE Target - Checked
#EIDPARRY Target - Checked
#IEX Target - Checked
#JustDial Kab khoon kholega re Tera , ab to #IOC b badne laga hai ?
ICICIdirect.com target on GRAPHITE
Price @ Call: 692.95
The stock actually suggested at 190 Levels.. today reached the target, high made is 689, Book atleast 60%. So this will make the remaining stocks, completely free.
We have recovered, out capital plus more than FD rate by booking 60% stocks
#GRAPHITE 671 : Crossed 615, next 750 & more.. This post in Positional Trades (Swing,Momentum,Trending,Invest)
#GRAPHITE 557 : Target 615 & more.. in Positional Trades (Swing,Momentum,Trending,Invest) channel on FrontPage
#PRAJIND cmp 183 stoploss 149 target 234
#VAIBHAVGBL cmp 3895 stoploss 3000 target 5000
#CUMMINSIND cmp 881 stoploss 740 target 1090
#APLAPOLLO cmp 1378 stoploss 1050 target 1800
#GRAPHITE cmp 479 stoploss 400 target 600
#KAJARIACER cmp 997 stoploss 840 target 1260
Grasim cmp 1344 stoploss 1120 target 1690
Jktyre cmp 123 stoploss 97 target 152
Nfl cmp 64 stoploss 57 target 79
Keep an Eye On
#TATA METALIKS .....
Keep an eye on 👀
2nd stock to watch out today
#GRAPHITE Buy above 362.70
Immediate Target can be 366
If it breaks 1st target then it can rally till 382
Maintain your stoploss at 357
Points to remember:
- This stock is suggested based on my own analysis. Please do your research before buying
- Always remember stoploss, not the big target
- Views given here is not a tip, rather it is for educational purpose. During the market hours, the conditions may change. So learn to act based on the situation
Stocks to watch Today
Keep them in your watchlist and enter above the given breakout level
#PRESTIGE buy above 299.25
#NMDC buy above 132.00
#KSCL buy above 563.15
#GRAPHITE buy above 340.45
#GAIL buy above 139.65
Watch this video for explanation with chart
AnandRathi target on GRAPHITE
Price @ Call: 281.18
**Graphite** - Q4 FY20 (Audited –Cons)**
Total income from operations 602 Cr
1,693 Cr (-64.46%) YoY | 643 Cr (-6.32%) QoQ
Year ending revenue: 3,094 Cr Vs. 7,858 Cr (-60.61%)
Net Profit of (7) Cr
562 Cr (-101.27%) YoY (353) Cr (101.83%) QoQ
Year ending Net profit: 45 Cr Vs. 3,396 Cr (-98.61%)
EPS (in Rs.) (0.37)
28.74 YoY | (18.08) QoQ
Year ending EPS: 2.30 Vs. 173.80
View: Result is below expectation and continuously declined. YoY revenue significantly declined and company also posted also. However since comparison from QoQ revenue slightly declined but losses significantly reduced.
**Business Updates & Highlights**:
Q4FY20 EBITDA is around INR (3) Cr Vs. 934 Cr in Q4FY19 Vs. (445) Cr therefore declined by 100.7% in YoY and 99% in QoQ. EBITDA margin is (0%) Vs. 55% in Q4FY19.
FY20 EBITDA to Rs. 95 Crores Vs. 5,233 Cr in FY19 therefore declined by 98% in YoY. EBITDA margin of 3% Vs. 67% in FY19.
**Key business updates**
Due to steep fall in electrode prices, Inventory has been recognized on Net Realizable Value as per Ind AS, resulting in a fair value adjustment of carrying inventory. FY2020 – Rs. 584 Crores write down. Q4 FY2020 – Reversal of Rs. 61 Crores out of the write down of Rs. 490 Cores in Q3 FY2020.
In Q3 FY2020 - The Company has recognized loss of Rs. 39 crores as per the Insolvency Resolution process, towards sales made to one of its customers in earlier period
The capacity utilization during the year was 55% as compared to 86% in FY2019.
ROE and ROCE is around 8% and 18% respectively and book value per share is around INR 180 and share is currently trading at 1.2x of its book value. Company is currently trading at annualized PE of around 101 which is too expensive as per Industry benchmark. Promoter holding is around 65.2% in the company which is stable and fair. FIIs and insurance cos hold around 9% and 3.5% in the company. Cash and cash equivalent from operating activities as of March 2020 is around INR 171 Cr Vs. 1,770 Cr as of March 2019. Debt as of March 20 is around INR 416 Cr and cash & cash equivalent as of March 20 is around 2,008 Cr.
Position: Share strong support price is INR 180. Book and exit based on your risk appetite.
**Share View**: Share price high 427 (52 week) and now 203 almost 50% corrected from their peak. Graphite India is the largest Indian producer of graphite electrodes and one of the largest globally, by total capacity. Its manufacturing capacity of 98,000 tonnes per annum is spread over three plants at Durgapur and Nashik in India and Nurnberg in Germany. Graphite electrodes are used in electric arc furnace (“EAF”) based steel mills and is a consumable item for the steel industry. The graphite electrode industry is highly consolidated with the top five major global players accounting for almost 75% of the high end UHP electrode capacity.
Opportunities: Share is currently trading at 80% discount for their all-time high 1100 in 1.5 years back. Global slowdown in steel demand coupled with increased steel exports from China is expected to impact demand of electrodes. Electrode capacities have been ramped up in China. However, EAF capacities have not kept pace due to higher scrap cost and electricity cost thus creating an imbalance. Excess electrode volumes are being exported to other countries at cheaper rates
Risk: India removed antidumping duties on graphite electrodes imported from China in September 2018 which has resulted in increased imports. Steel prices also continue to remain under pressure and combination of these factors have resulted in significant correction of electrode prices. Continuously deteriorated topline as well as bottom line on YoY and QoQ now Covid also further correct the company overall product demand.
Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.
Graphite is running today in intraday. CMP 308
Graphite showing good movement today. Now at 310-312. Looks good for intraday and next few days
Add graphite again for 355-370 tgt
Free call - Start watching - Graphite now at 471-472. From here upside expected
#equity #intraday #nse #nifty #nifty50 #trading #traders #trade #stockmarket
Free call - Graphite blasting big time. CMP 443-444
#equity #intraday #nse #bse #nifty #nifty50