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Hello everyone welcome you all to the my blog article where you learn stock markets in detail so friends today in this video i will be analyzing some small cap stocks very small companies which i believe can perform well in the future so we will do their detailed analysis we will look at the you know company details and do the technical analysis as well and we will see whether one should invest in them now if he has at what price and how much profit you know these stocks can generate so the first talk that i would like to analyze now this company it is the largest provider of cancer care in india under the hcg brand it owns and operates comprehensive cancer diagnosis and treatment services which include radiation therapy medical oncology and surgery and it has a network of consisting of 25 comprehensive cancer centers including the center of excellence in bengaluru
one centre in africa each of the comprehensive cancer center offers comprehensive cancer diagnosis and treatment services at a single location furthermore free standing diagnostic centers and daycare chemotherapy center offer diagnosis and medical oncology services respectively and the name of this particular company is healthcare global services uh healthcare global enterprises limited so hcg is the first stock and i think this is a very good company for the future and i believe uh this stock has a potential to generate some good returns so it is expected to turn around the operating profitability and you know we expect it’s operating a bit of margin to improve by 680 bps over effect 21 to 24 earnings majority driven by the first point is increasing average occupancy rates 53 to 58 percent that would bring operational leverage and then we have increasing arpu be led by an increase in international patients and high-end works then operating leveraging new centers that have already achieved break-even variable and fixed costs comprise 35 percent and 65 percent in hospitals and therefore i believe strong operating leverage in new centers may improve margins 12 to 15 percent over 5 21 to 24 earning this company intends to focus on consolidation over fi 22 to 24 earnings while incurring minimal capex and there would be significant reduction of losses given the improvement in profitability of the new centers cost reduction measures undertaken by the company reduction in depreciation and finance charges and with the rising incidence of cancer in recent years india has significantly improved the process for cancer diagnosis and treatment recent advancement have also transformed cancer care and given hopes to millions of people and oncology you know it is the fastest growing industry in the healthcare market reporting a 13 percent cagr over fi 16 to 19 and hcg has outpaced the industry growth and reported revenue cgr of 19 percent and new patients registration see a year of 24.6 percent over 16 to 19 respectively the company’s ar pob reached 38 000 uh 345 around 21.9 percent on plus 21 percent in quarter to five 22 year on year due to high end works and is expected to improve further with the increase in the volume of international patients so overall you know i believe it’s a good stock to bet for the future so now let’s look at the chart so if you see uh the stock recently went below the 200 moving average and made a low of around 210 rupees then it recovered very nicely in the last few days and now it’s again back above all the important moving averages so that’s a good sign so 240 uh can be a price to look at because that is where some very good support is there plus moving average zone is there and also rsi is now looking good stock has shown some good momentum volume has been more than average and looks like it might give a breakout very soon about 260 and i believe once it you know gives breakout above this level there can be some fresh rally from here and the stock can you know generate some good returns so it’s a good company in my opinion and if you want to invest in i believe 240 can be the area where one can look to buy this stock 240 is the price where i would like to enter in this company so very good stock for the future hold it for a few years and it can give some very good compounder returns now let’s look at the second stock another very interesting company so this talk uh if you look at the returns the last 10 year this company is up around 1683.18 percent now that is very good returns and uh company can repeat the returns as well and in the last five year it is up to 164 percent 75 percent in three year 150 percent in two years continuously trading higher and it has a dividend yield to 0.3 percent so this company though it is a engage in manufacturing of corn starch derivatives soya derivatives feed ingredients cotton yarn and eatable oils since its incorporation in 1991 the firm strives to serve the food pharmaceutical feed and many other industries with a long-term growth strategy in the agro processing sector and the company you know it is the largest maize processing company in india with installed capacity of 3000 tons per day and company’s products include liquid glucose sorbitol dextrose and hydros dextrose monohydrate maltodextrin and high fructose corn syrup and the firm you know it has india’s second largest soybean crushing capacity with six plants located across gujarat madhya pradesh and maharashtra with combined capacity of more than 4600 tpd
it also has capacity for edible oil around 1200 tpd and wheat miling and the company has one plant located at himmatnagar which is in gujarat for its cotton yarn segment with a capacity of 6520 spindles it has recently entered into an agreement with a large textile company to provide this plant on a dedicated basis for contract manufacturing the company’s client if you talk about the company’s major clients they have some very big companies like dhaba mondelez asian paints patanjali nestle colgate heinz itc hul biocon parley cargill india agrotec foods and bl agro oil so these all you know famous companies uh are one of you know companies client and it also has four plants located at himmatnagar in gujarat sitar ganch in uttarakhand hublin karnataka and chalisga in maharashtra and all these states are major maze growing areas and the company has proposed an equity issuance for fundraising up to 1000 crore and the firm has a market share of 25 percent it buys raw materials in bulk once a year around the in harvesting season typically in march giving them a four to five percent procurement cost advantage uh compare to the peers and the company has reduced that uh which is a positive side right now uh it is almost debt free so that’s also a good signal and it is suspected to give a good quarter coming quarter can be good and it has also delivered good profit growth of twenty eight point three nine percent siege over the last five years and healthy long term growth as operating profit has grown by an annual rate of 28 percent and it has also declared possible results for the last five consecutive quarters and friends the name of this uh company is gujarat abuja exports limited gael let’s look at the chart so if you see uh this stock is trading near 190 196 is the exact price and if you want to buy i would suggest to wait for some correction uh below 175 i believe one can enter in this stock and uh hold it for a few years i think it will create some good wealth for the investors it can achieve targets of 500 i believe in the next two to three years so this was my analysis of two stocks i hope you liked my analysis see you again soon with another stock analysis video till then goodbye take care happy trading happy investing
