Short Term Investment Pick:NGL Fine-Chem Ltd

By | November 12, 2010

Fundamental Perpective

NGL Fine-chem Ltd is a manufacturer of pharmaceuticals and intermediates for usage in veterinary and human health. Company caters to various global companies to custom manufacture high quality pharmaceuticals with reliability and flexibility.
Utilizing its expertise in complex multi-stage organic synthesis, company continues to expand their product portfolio with new products. Company has established a strong presence in global pharmaceutical companies with its commitment to
competitive prices, delivery schedules, international quality standards and constant technological upgradation. The Company was incorporated on December 18, 2981 as a Private Limited Company in the State of Maharashtra. The Company became a
Deemed Limited Company by virtue of Section 43A of the Companies Act, 1956 on 29.12.1993 and the necessary alternation to the Certificate of Incorporation was duly obtained from the Registrar of Companies, Maharashtra. The Company has deleted
the restrictive clauses in the articles of association by passing a special resolution on May 20,1994 and has become a Public Limited Company. The Company has got its registered office and factory at New Bombay. The Company was promoted by Mr.
A.G.Lawande, Mr.R. J. Nachane joined Mr.A.G.Lawande for actively participating in the management of the company in 1989.

Quarterly results
Jun ‘ 10  Mar ‘ 10   Dec ‘ 09      Sep ‘ 09       Jun ‘ 09
Sales                                                                          7.64         6.83         6.90         7.20            7.03
Operating profit                                                     1.39         0.58         1.17          1.47            1.94
Interest                                                                      0.09        0.10          0.08         0.04            0.07
Gross profit                                                               1.31         0.53           1.14         1.51             1.89
EPS (Rs)                                                                     1.18         0.52           0.98         1.36            1.38

It has an equity base of Rs.3.09crore that is supported by reserve of around Rs.8crore leading to a book share value around Rs.22.10. The promoters hold 66.68%, non promoter corporate bodies hold 11.85% while the investing public
holds 21.46% stake in the company.

For FY10, it recorded net sales of Rs.28.02crore with net profit of Rs.2.71crore against net sales of Rs.24.63crore with net profit of Rs.1.68crore in FY09. (Net profit zoomed 61% on yearly basis). The FY10 EPS was Rs.4.36. At current level,
the stock is available at a forward P/E multiple of just 5.55.

Complied from a Report Fundamental Analysis

Daily Chart of NGL

Looking at Daily Chart Resistance comes around Rs 26 and support at 50 DMA at Rs 23.

Stock is having Golden Cross Formation as 5EMA>50 SMA >100 SMA>200 SMA.

Its a kind of BUllish set up and can lead the Stock to higher levels if golden formation persists.

STOCH is forming higher low formation as indicated in charts and RSI is also on support trendline.

Weekly Chart

Looking at Weekly chart Support is seen at 50 SMA @23 and resistance  at rs 26-28 range.

For higher tgts Resistance of Rs 26-28 should be cleared with volumes.

2 thoughts on “Short Term Investment Pick:NGL Fine-Chem Ltd

  1. lalit

    very good analysis,excellent mixture of fundamental & technical analysis
    keep it up.but i request you to come out every week with one stock only that is low in price n good on fundamentals.secondly no body teaches fundamental analysis on any website.if you could take initiative that would be appreciated.

    thanks & regards

    lalit singh

    http://www.stocksmarketanalysis.blogspot.com

Leave a Reply