tag:blogger.com,1999:blog-82509451426265044752024-03-05T10:14:15.990+05:30IndianStocksNews.comBest Stocks To BuyUnknownnoreply@blogger.comBlogger135125tag:blogger.com,1999:blog-8250945142626504475.post-33107700221952771242012-06-24T23:24:00.001+05:302012-06-24T23:41:04.698+05:30Kabra Extrusiontechnik - Stock to buy in 2012?Kabra Extrusiontechnik had a bad FY12 financially due to slowdown in Indian polymer consumtion growth. Construction pipes and FMCG packaging oriented polymer consumption is expected to resume it's growth in FY13 and so the growth of Kabra Extrusiontechnik. Does this makes it a stock to buy in 2012?<span id="fullpost"><br />
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<b>BUSIENSS</b><br />
As stated, The polymer consumption in plastic pipes for irrigation, water management, construction, telecom industries and packaging films for edible oils, milk, processed foods and other FMCG products is expected to show healthy growth in FY13 and beyond. Kabra Extrusiontechnik (KETL) is India's leading manufacturer of heavy machinery/plants for plastic processing industry to produce plastic pipes and packaging films. The expected growth will ensure demand for products of company.<br />
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Industry experts believe that investment of nearly $10 billion would be required in the plastic processing industry to meet the future demands. Such big investments in the plastic processing industry will be a key growth driver for sector and so for the company.<br />
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The company has set up one more manufacturing unit at Daman with investment of Rs.35 crores for new products. This additional capacity will be available from FY13 onwards. <br />
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Kabra extrusion has paid dividend consistently for last 7 years in a row. It's current stock dividend yield stands at healthy 5.17%.<br />
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<b>STOCK FINANCIALS</b> <br />
KETL's profits plunged 75% against a 14% fall in its net sales in first three quarters of FY12. This was due to investment in new plant in Daman and increased expenditure due to hike of 30% in local electricity rates. Company's revenues have grown at a CAGR of 16.9% with profit growth at 32.5% in the five-year period ended FY11. Its debt-equity ratio at end September 2011 is at 0.1.<br />
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<b>STOCK VALUATIONS</b> <br />
The stock trades at current stock price of Rs.34. The price-to-earnings multiple (P/E) is at 11.67 and price-to-book value ratio (P/BV) of 1.01. The board has recommended dividend of Rs. 1 per share for 2012 which makes dividend yield at 3% which is not bad. Looking at growth prospects and limited downside, it is a good small cap stock to buy at dips and wait for a year or two to get good investment returns.</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-8515250114685804632011-12-24T22:52:00.000+05:302012-01-03T09:49:43.514+05:30Small cap stock analysis – Piramal Glass<div dir="ltr" style="text-align: left;" trbidi="on">Piramal glass gives you an indirect opportunity to be part of FMCG market in very niche categories of Cosmetics, Perfumes, food-beverage and pharmaceuticals. Why indirect? Because Piramal glass supplies glass packaging to these industries. This business model of theirs directly links them to two of the steady and recession proof sectors of FMCG and pharmaceuticals. Let’s see if this niche business is an opportunity to buy stocks of this <a href="http://www.indianstocksnews.com/2011/12/small-cap-stock-analysis-piramal-glass.html" target="_blank">small cap stock</a> and make money.<span id="fullpost"><br />
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<b> Company</b><br />
<a href="http://www.indianstocksnews.com/2011/12/small-cap-stock-analysis-piramal-glass.html" target="_blank">Piramal Glass Limited (PGL)</a> is a Ajay Piramal owned company from Piramal Group. It manufactures glass containers (flaconnage) for Cosmetics & Perfumery (C&P), Specialty Foods & Beverages (F&B) and Pharmaceuticals industries. The glass containers manufactured by company are used for products such as nail polish, perfumes, skin care creams, foundations and attars in Cosmetics & Perfume industry. Company manufactures amber bottles, amber and flint vials for liquid oral formulations and injectibles for pharmaceutical industry. Bottles for wine, liquor and food are manufactured for food and beverage industry by company. It has manufacturing plants located in the United States, Sri Lanka and India. Piramal Glass markets its products in more than 54 countries worldwide.<br />
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<b>Growth and Financials</b> <br />
Piramal glass is planning to grow its capacity by another 22% by the end of this fiscal. It was a loss making business till FY09. But after FY09, it has performed steadily with growth in its earnings. For FY11, company’s net sales were Rs. 1,218.5 crore (it was Rs 1,104 crore in FY10). Net profit in FY11 was Rs 103.4 crore (Net profit was Rs 3 crore in FY10). Net sales itself has more than doubled in the last five years. The company made a rights issue in 2009 for debt reduction. The debt to equity ratio was 15.7 in 2009 when rights issue was done. Now the debt to equity ratio stands at 2.4. And debt reduction has helped in reducing interest payments. <br />
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The Cosmetics & Perfume segment earns roughly 30% operating margin against 22% for the pharmaceutical and Food & Beverage segments. Cosmetics & Perfume category is increasingly contributing towards revenues for company. Revenue share of it has grown from 35% in FY09 to almost 50% in FY11. This has helped company in growing cash flow over last two years. Due to this higher revenue share and increasing sales, Piramal glass turn around and swung into profits from losses. <br />
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<b> Investment Rationale</b> <br />
Piramal Glass is expecting to increase it’s capacity of manufacturing cosmetics and perfume bottles by 40% and for this, company is setting up new manufacturing facility in Gujarat by March 2012. This capacity increment will make Piramal Glass the world's second largest cosmetics and perfumes bottle manufacturer after France's SGD. As discussed earlier, higher sales and higher profit margins from Cosmetics & Perfume segment has helped the company to improve it’s profitability. Also, company had acquired a US company. This US company has customers such as Calvin Klein, Estee Lauder and similar brands which are very popular in western world and in rest of the world too.<br />
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Piramal Glass, having manufacturing operations in India, has a huge cost advantage over other such companies as most of these companies are based out of Europe. Obviously, cost of production for Piramal Glass is much lower thatn it’s European peers (it is just 46% compared to its European rivals) The company is lining up capital expenditure of Rs 260 crore in the next two years from internal accruals to increase the capacity of Cosmetics & Perfume packaging unit. With the debt reduced in past two years, interest outgo is reduced and will go lower in future increasing net profits.<br />
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<b> Stock Valuation</b><br />
Promoters hold 72.30% as per shareholding pattern, which is excellent. The company has given a growth guidance of 17% CAGR for next two years. At current stock price of Rs.93, the stock trades at a P/E of 9. Company had paid out dividend in August 2011 and the stock dividend yield is at 3.79%. If it continues it’s performance, it could be a <a href="http://www.indianstocksnews.com/2011/12/small-cap-stock-analysis-piramal-glass.html" target="_blank">good dividend yield growth stock</a> in future. At this stock valuation, it is a very attractive stock to buy with 2 years of investment horizon. </div></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-11010348525547060572011-08-03T09:01:00.000+05:302011-08-03T09:01:09.088+05:30Small Cap Stock Story - Tulip Star Hotels<div dir="ltr" style="text-align: left;" trbidi="on">This small cap stock has almost doubled in past 3 weeks. I really do not have any clue whether one should buy stocks of this company. But I would like to share the story I read and you are invited to make and share your judgments. <br />
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Tulip Star is different kind of small cap stock story. They are in battle with another company over a Juhu Centaur Hotel. Juhu Centaur hotel is a six acre property at prime and affluent location in Juhu in Mumbai.<br />
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Tulip Star is fighting a case with Siddhivinayak Realties. Tulip Start has almost won this case as they have recently got the arbitration award for Juhu Centaur Hotel against Siddhivinayak realties.<br />
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Juhu Centaur Hotel is owned by V Hotels Private Limited. Tulip Star holds 50% stake in V Hotels. <br />
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As per the arbitration award, they have to shell out and pay Rs. 73 crores to Siddhivinayak Realties. After this payment, V hotels can sell the property as they want on their terms and conditions. <br />
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This property could have almost 15 lak square feet of developable area. The valuations for this property can go well over Rs. 3000 crores.<br />
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<b>Shareholding pattern of Tulip Star</b><br />
Promoters hold 57%. In this, COX & KINGS holds 30.4%. Also, 33% belongs to associates close to promoters. So 57 + 33 i.e. 90% of the floating stock is not in public domain. What remains is 10% with general public. <br />
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<b>Stock Valuation</b><br />
At current stock price, market cap of Tulip Star is just Rs. 106 crore. Now, the company, with 50% stake in V Hotels, owns the Rs. 3000 crores property with their share of Rs. 1500 crores. <br />
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Tulip Star has 21 crores in debt. At the same time, it has lent 37 crores to V Hotels. This makes it a debt free company. <br />
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So the company like Tulip Star that has net value of at least 1500 crores could have the market cap somewhere close to at least 20% of it’s net value. That is 300 crores. So there is tremendous scope for company’s current market cap of 70 crores to grow in near future. <br />
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I would like to know your opinion on this one. You are invited to share your thoughts using comment form below.<br />
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</span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-12614355975343928172011-07-27T05:13:00.002+05:302011-07-27T05:14:41.338+05:30Small Cap Multi Bagger Stock - Logix Microsystems<div dir="ltr" style="text-align: left;" trbidi="on">Logix Microsystems is a small cap stock that could be a multi bagger in medium term but slightly risky stock due to it's very high FII holdings. Let's have a look at it's stock analysis and why one may consider to buy stocks of this company. <br />
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Logix Microsystems Limited operates in two segments namely enterprise connectivity and security, and Izmo cars solutions. The Company has various solutions such as izmoWeb is an automotive online store for auto dealers. izmoMobi is a mobile Website. izmoRainmaker is an online marketing solution. AddOnAuto involves in-store accessories sales. izmoTele Trak involves call management and tracking. iCRM is an customer relationship management solution for the Automotive industry. iEquity is a database sales solution. iConsult involves sales performance coaching. iService is a automotive service management system. izmoStudio provides digital imagery and interactive media solutions for the automotive vertical. <br />
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Company has regional subsidiaries in Europe, USA and ASIA which are Izmo Europe BVBA, Logix Americas Inc., Midrange Software Pte Ltd and izmo Media.<br />
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Most of the company solutions cater hundreds of auto dealers with over thousands of showrooms and automobile portals such as Yahoo Auto, AOL Auto and some of the auto OEMs General Motors, Ford Motor Co., Mitsubishi Motors, etc. <br />
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Logix Microsystems also operates a web portal www.carazoo.com for Indian market. <br />
Internet has been off lately proving as a big marketing tool for automobile sector due to it’s wide and ever growing reach. Due to very huge user base and low cost to reach that user base automakers have started using internet based interactive websites/application for auto marketing and Logix Microsystems is an established player in catering this market. Logix has an established track record of 7 years in the largest auto market in this world, the US market! <br />
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The company is planning to focus on adding big clients and auto dealers in US as well other big auto markets such as Europe, Asia and home ground India. It plans to tap the auto dealers to strengthen their presence in the auto accessories market. Carazoo division has started growing its customer base allover India. It includes automotive as well as 2 wheeler dealers which are huge in numbers.<br />
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<b>Stock Valuation</b><br />
Logix Microsystems is a micro cap stock with market cap of just Rs.20 crores. With trailing four quarters EPS of Rs 3.89, at current stock price of Rs.16.8, the stock trades at P/E of just 4.33 which is very cheap. The book value of stock stands at Rs. 136.65 It is trading at Price/Book ratio of 0.12 So why is it available at such steep discounted valuations? There could be only one possible reason. The stock has low promoters holding (21.49%), high FII holdings (21.10%) The stocks with high FII holdings are very volatile and so is this small cap stock. It has 52 week high/low of 57/14.7<br />
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The company has a very niche and unique business model with huge opportunities. Looking at the stock valuations, one may buy stocks of Logix Microsystems for medium term gains and it may even prove to be a multi bagger stock.<br />
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</span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-54078877831622159102011-07-18T08:04:00.001+05:302011-07-18T08:07:18.032+05:30Small Cap Stock To Buy - Narmada GelatinRecently I came across a small cap stock recommendation by Ashish Chugh, well known for his hidden gem stocks. He discussed a small company, Narmada Gelatin. Here are details on why he recommends this small cap stock.<br />
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Narmada Gelatin is a 50 years old company from Shaw wallace group and it manufactures Gelatin. It's product, Gelatin is mainly used in food and pharma industry. It is a debt free entity and is available at very attractive stock valuations.<br />
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Company had sales of about Rs.91 crore, it was up by 10% in the same period last year. Profit after tax (PAT) was up by about 15% to Rs9.5 crore. Company has a small equity base of Rs.4 crore. EPS for FY11 was Rs 23.50. At the current stock price of Rs 100, the stock trades at PE of 4.25<br />
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If you take a look at the balance sheet of the company it shows that Narmada Gelatin is a totally debt free company. Net current assets are close to Rs 26 crore as in FY10. The company has investments of Rs 5.5 crore in mutual funds. After adding profit for FY11 into this, the total current assets and cash swells to around Rs.41 crores. With current assets of about Rs.41 crores, the market cap of this debt free company is at Rs 40 crores. This means the business of a company is available virtually free of cost.<br />
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The promoter's holding in this stock is 75%. The recent dividend of Rs.4 puts dividend yield at 4% at current stock price of Rs.100 The book value of the stock is Rs.140 <br />
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Products of Narmada Gelatin are used in Pharma and food industry (FMCG), that makes it a recession proof business.<br />
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Shaw Wallace group has been selling it's many businesses in recent few years. Narmada Gelatin is a good dividend yielding stock with steady growth. If the company is old by Shaw Wallace group, lots of value unlocking would take place. <br />
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All in all, it is a good small cap stock to buy, a hidden gem recommended by Ashish Chugh, below Rs.100.<br />
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</span>Unknownnoreply@blogger.comIndia20.593684 78.9628800000000416.071455499999999 64.319952500000042 35.1159125 93.60580750000004tag:blogger.com,1999:blog-8250945142626504475.post-485667044598238352011-06-19T09:12:00.003+05:302011-06-19T22:37:18.534+05:30MIC Electronics - What to do now?<div dir="ltr" style="text-align: left;" trbidi="on">One of the readers of Indian Stocks News, “Optimist” asked me about my opinion on MIC electronics at it’s current state. Company’s stock price in recent times has been beaten down badly in stock markets. What to do with it now?<br />
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For those who don’t know much about company, MIC electronics is a small cap stock. The company was in business of manufacturing and marketing of semiconductor chips and LED display/lights. As per recent announcement from it’s management, company has decided to go only with LED technology business in future.<br />
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MIC electronics management has already declared their choice of going ahead in business only with LED technology and it’s applications. Let’s first talk about technology. LED (Light Emitting Diode), is a tiny small piece that throws out light by taking eelctricity as input. The best part is, it takes very very less electricity as input that makes it electricity saving lighting solution. Technologywise, it is the best new era lighting technology in market. So is the LED display screens that are used for out door video displays like large outdoor TV/video screens and advertising screens.<br />
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MIC has made these two products as their primary products in business line which has tremendous business opportunities. The problem in company looks to be distrust of people in management and recent lackluster performance of company. This is because of major chunk of shares pledged by promoter and sell of InfoSTEP. Revenue and profits have nosedived due to sell of this company. But it is still a profit making company. <br />
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Looking at recent interview of MD/CEO of MIC (<a href="http://www.moneycontrol.com/news/resultsboardroom/micelectronicstofocusonlyonleddisplayslightings_547263.html" target="_blank">click here for interview</a>), company is focussing only on LED related products and comapny should achieve big breakthrough in 2012. If this happens, company should achieve good growth depending on their efforts.<br />
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I am not saying this is very safe investment, especially looking at promoters shareholding etc. but this is also fact that promoter has invoked few lakh shares from pledged shares due to SEBI's rules. Company's book value as per June 2010 was Rs. 36.34 which is good. We will have to look for it's latest numbers as per June 2011 in near future. Company has Rs0.35 EPS for March 2011 quarter. If we estimate the EPS to be at these levels for, say next 4 quarters, it could be 1.4 and for this forward EPS, P/E at current stock price of Rs15 is only 10.70. The stock is not expensive at this rate. Company had paid dividend in 2007, 2008, 2009 when it was doing good, though not at very high dividend yield, but that shows some shareholder friendly policy. <br />
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I am invested in MIC from last 2 years, although not a big chunk of portfolio but a few thousand shares. I have a long term view and I might even average my investment at this rate in next few days. I will remain invested in this stock for long term portfolio for one reason, I know the LED technology well and MIC is the only player in India in this segment. Even if management does average, they could do okay. It is a high risk high return investment for me. It could be a bit longer wait for investors if company's plans go thru. It is a bet that I will be taking for this reason and wait for at least 3-4 years. <br />
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</span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-86672184760518166622011-06-08T08:43:00.001+05:302011-06-08T08:45:34.379+05:30Small Cap Stock To Buy - Fiem Industries<div dir="ltr" style="text-align: left;" trbidi="on">I recently came across discussion about this small cap stock that I felt could be a multi bagger stock in next few years. I thought to do some stock research to find out why this could be a stock to buy for long term.<br />
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Fiem Industries Limited is a company in the business of automotive components. It manufactures and supplies auto components (automotive lighting and signally equipments being major components), rearview mirror, prismatic mirror, sheet metal parts and moulds, and block and dies for two-wheeler and four wheeler components. <br />
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Fiem industries has formed a JV with Ichikoh Industries, Japan for four wheel and two wheel lamp business. Fiem will hold 34% stake in this JV. Company has signed two memorandoms with Ichikoh Industries Limited of Japan, which is having a worldwide Alliance with Valeo of France called Ichikoh-Valeo Alliance, the worlds No. one manufacturer of Automotive Lighting and Signaling Equipments. <br />
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First MoU is for setting-up a Joint Venture Company for manufacturing of Automotive Lighting & Signaling Equipments for catering to four-wheeler OEM Customers both in Northern and Eastern India. Second MoU is for forming a Strategic Global Fiem-Ichikoh Alliance for acquiring the 2-Wheeler Automotive Lighting business in worldwide market. Under this Alliance, Fiem Industries Limited and Ichikoh Industries Limited will tap global 2-Wheeler Automotive Lighting business by strategic use of core competencies, manufacturing facilities, technical expertise, and sales network of both the companies.<br />
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With Ichikoh forming JV with Fiem, Fiem will get technological benefits from Japanese company. This should translate into better business opportunities, higher revenues and profits in future. <br />
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Company has acquired a new Industrial Plot measuring in June,2010 in Industrial Area Tapukara, Distt. Alwar in Rajasthan. This is strategically located in close proximity to upcoming new Factory of Honda Motorcycle and Scooter India Pvt. Ltd. and existing factory of Honda Siel Cars India Ltd. In this plant, company will set up the facilities of Injection Molding and Paint Shop for which the construction has already been started.<br />
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With these developments going on in company, once Ichikoh alliance starts contributing to company’s financials, stock should definitely get re-rated in stock markets considering growth.<br />
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<b>Stock Valuation:</b><br />
At current stock price of Rs.158, the stock trades at 12 month trailing P/E of 16.52 Company is expected to post EPS of more than 12 for next year. With this EPS consideration and similar valuations, stock price target could be Rs.198 for one year time period. If you consider joint venture with Ichikoh and new opportunities generated by this JV, there could be huge growth for Fiem.<br />
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One may buy stocks of Fiem at current price and at dips for long term capital appreciation. <br />
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</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-29285010681014477652011-05-26T07:42:00.000+05:302011-05-26T07:42:33.135+05:30Buy Stocks of Siyaram Silk Mills on dips<div dir="ltr" style="text-align: left;" trbidi="on">Result update on Siyaram Silk Mills and “Buy Stocks” recommendation and stock analysis with target stock price. It is one of the good small cap stock with no doubts. <br />
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Siyaram Silk Mills is the largest blended fabric manufacturer in India. They are the preferred sourcing partner for many of the leading apparel brands in country. Along with this, they have presence in country’s retail apparel market with brands like Siyaram’s, J.Hampstead and Oxemberg. The presence of these branded apparel is in thousands of retail apparel shops countrywide. <br />
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SSM is expanding at rapid pace from year 2011 till 2013. The company has plans to add 286 looms (479 current looms) in a phased manner over FY2011–13 in the fabric segment. It is also adding 400 machines in its readymade garment (RMG) segment by September 2011. These capacity expansions will definitely help the company to take full advantage of the growing demand in growing apparel consumers market in India.<br />
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<b>Stock Analysis</b><br />
For 4Q FY2011, Siyaram Silk Mills (SSM) has registered strong performance. They have posted 30.2% Y-O-Y growth in net sales to Rs245cr. Net profit has increased 21.8% Y-O-Y growth to Rs19cr. EBITDA increased by 21.4% yoy in 4Q FY2011 to Rs32cr due to higher revenue earnings. For 4Q FY2011, the company posted a 22.6% increase in PAT to Rs187cr on the back of higher revenue and margin expansion.<br />
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<b>Stock Valuation</b><br />
At current stock price of Rs373, the stock trades at reasonable P/E ratio 6 for trailing 4 quarters. Price to book value ratio stands at 1.54. Looking at the expansion under execution in next two years, the stock could provide good investment returns (in the range of 15-20% per annum) in medium to long term. I would recommend to buy stocks of Siyaram silk mills if it dips below the current stock price of Rs 373.<br />
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</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-37819928957064062972011-04-13T18:17:00.001+05:302011-04-13T18:18:44.410+05:30Small Cap Stock To Buy - Fedders Lloyd<div dir="ltr" style="text-align: left;" trbidi="on">Sometime back, I came across a stock analyst on TV recommending <a href="http://www.indianstocksnews.com/2011/04/fedders-lloyd-stock-to-buy-now.html">Fedders lloyd</a> as a <a href="http://www.indianstocksnews.com/2011/04/fedders-lloyd-stock-to-buy-now.html">small cap stock to buy</a> for medium term. Here is a stock report and views on it.<br />
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<a href="http://www.indianstocksnews.com/2011/04/fedders-lloyd-stock-to-buy-now.html">Fedders lloyd</a> provides turnkey air-conditioning solutions to defense, railway and commercial clients. They also sell air conditioners in retail market. <br />
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India has become a consumers economy and appliance businesses are one of the biggest beneficiaries of this. Air conditioners is one such segment where companies are benefiting from increasing demand due to rising disposable incomes from ever growing middle and upper middle class in India. Fedders Lloyd is in good position to ride on this demand and get pie of this market through retail segment.<br />
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Coming is the summer season which is the best for air conditioners selling. If you look at recent results of Fedders Lloyd, it reported sales turnover of Rs.364.57 crores. Compare this to Rs.172.59 crores sales in December 2008. The growth in sales is more than 100%.<br />
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Look at the Net profit and you would be wowed! From Rs.3.5 crores in December 2008 it has jumped to Rs.22.03 crores in December 2010. A seven fold increment in two years.<br />
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Same is the case of EPS that jumped from 1.14 in Dec.08 to 7.16 in Dec.10. All these numbers represent quite a good growth in sales and profits. This makes it Fedders Lloyd a growth stock. <br />
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<b>Stock Valuation</b> <br />
In half year till December 2010, as discussed, company has posted an EPS of close to Rs 7.20 on topline of Rs.360 crores. Coming is the summer season which is always good for AC industry. Fedders Lloyd might be in good position to post EPS of Rs.8 for their year ending in June 2011.<br />
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At current stock price, the stock trades at PE ratio of 5.7 to expected EPS of 16. Industry wide PE is at 13. This shows <a href="http://www.indianstocksnews.com/2011/04/fedders-lloyd-stock-to-buy-now.html">Fedders Lloyd</a> is under valued and ignored stock by market.<br />
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If company keeps growing it's numbers as discussed above, which it will unless something catastrophic happens and halts the growth of entire economy, they might grow sales and profits at above 25% per year. The stock is available at good valuations now and one may buy stocks of Fedders Lloyd for target price of Rs.130-140 for one year.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-61125808094809126352011-03-19T09:43:00.001+05:302011-03-19T09:45:24.765+05:30Cals Refineries Latest News Update<div dir="ltr" style="text-align: left;" trbidi="on">New Delhi, March 18: <a href="http://www.indianstocksnews.com/2011/03/cals-refineries-latest-news-update.html">Cals Refineries</a>, which is setting up a refinery in Bengal, plans to induct Hardt Group affiliates as a strategic investor with management control to overcome its resource crunch.<br />
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Officials said Cals Refineries had entered into agreements to purchase two refineries — Cenco Refining Company (the US) and Atas Refinery (Turkey) — owned by the affiliates of Hardt Group on a refurbished basis for the second phase of Haldia project.<br />
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Atas is owned by international oil majors BP, Shell, & Turcas, while Cenco is majority owned by American multi-millionaire Pat Robertson’s trust. While Cenco is a 50,000-bpd (barrel per day) refinery, Atas’s capacity is around 100,000 bpd.<br />
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Analysts said, “Hardt has a track-record in financing and arranging international refinery relocation projects, which is Cals’ main strategy. The interesting aspect is that the sellers of these refineries — which are some associates of Hardt — have agreed to be equity partners in the project, in return for the refineries. We may have to wait for more clarity to take a view on the project.”<br />
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Cals plans to come out with global depository receipts for over 7 million, which will be purchased by the global investment firm. Cals will pay Hardt 7 million, with 7 million paid in the form of global depository receipts and the balance in cash.<br />
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Sources said it would soon apply to the government for regulatory approvals and later to the Foreign Investment Promotion Board for coming out with the GDR issue.<br />
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Hardt will ensure that the equipment get refurbished before they are delivered to the company and shipped to Haldia for the phase II of the project. The equipment will increase the aggregate refining capacity of Cals’ planned refinery project in Haldia to 200,000bpd.<br />
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In 2008, Cals had entered into an agreement to buy Bayernoil’s Ingolstadt refinery through Lohrmann International, which when dismantled, shipped, and re-erected in Haldia, would form the Phase-I of the project.</div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-24299697356188699172011-03-11T02:51:00.006+05:302011-03-12T19:46:38.186+05:30Small cap stock analysis - INOX Leisure ltd<div dir="ltr" style="text-align: left;" trbidi="on">Here is a <a href="http://www.indianstocksnews.com/2011/03/small-cap-stock-analysis-inox-leisure.html">small cap stock from entertainment business</a> I thought is worth spending some time on it's <a href="http://www.indianstocksnews.com/2011/03/small-cap-stock-analysis-inox-leisure.html">stock analysis</a>.<br />
<span id="fullpost"><br />
<a href="http://www.indianstocksnews.com/2011/03/small-cap-stock-analysis-inox-leisure.html">INOX Leisure</a> is one of the well known movie multiplex operator and exhibitor. It is a subsidiary of another listed company, Gujarat Flurochemicals. INOX leisure has expanded its business in 25 cities with 38 operational properties and 144 multiplex movie screens. INOX leisure has diversified into other businesses, like power, distribution and movie production.<br />
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In recent past, company has acquired Calcutta Cinema which owns nine multiplexes in West Bengal and Assam. Company has plans to expand in two and three tier cities such as Jodhpur, Ahmedabad, Bhopal, Mangalore, Coimbatore, Kanpur, Hubli and Bhubaneswar.<br />
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<span style="font-weight: bold;">Acquisition & Growth</span><br />
<a href="http://www.indianstocksnews.com/2011/03/small-cap-stock-analysis-inox-leisure.html">Inox Leisure</a> has recently acquired Fame India. After this acquisition, Inox Leisure now holds more than 50% stake in Fame India. Fame India has 25 operational properties with 95 movie screens in 12 cities. With this acquisition, INOX and Fame India collectively have properties in 37 cities with 240 movie screens. This makes Inox Leisure biggest movie exhibitor in India after Big Cinemas in terms of number of movie screens.<br />
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This acquisition would provide increased presence and better pricing power to INOX leisure. In FY10, Fame India had revenue of Rs 18 crore from film distribution. A bit more than by Rs 2 crore of Inox Leisure. Fame India has locations where INOX was not present, thus the acquisition give strategic advantage to INOX for wide presence and stronger distribution network. This should translate into increase in earnings.<br />
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Read: <a href="http://www.indianstocksnews.com/2010/12/stocks-to-buy-in-2011.html" target="_blank">Stocks To Buy In 2011</a><br />
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<span style="font-weight: bold;">Stock Financials:</span><br />
INOX leisure had debt of Rs.184 crores in FY10 compared to Rs.44 crores in FY09. Compnay has used this debt to fund the acquisition of Fame India, expansion of screens and acquisition of CCPL multiplexes in West Bengal.<br />
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Due to higher debt, interest costs have increased from around Rs 1 crore in the September 2009 quarter to Rs 3.5 crore in the September 2010 quarter. Company's net profit fell 37% on a y-o-y basis to Rs 3.3 crore due to this high interest cost, more employees and other expenses.<br />
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<span style="font-weight: bold;">Stock Valuation:</span><br />
At the current share price of Rs 45, Inox leisure stock trades at a price-earnings (P/E) ratio of 8. Compared to its peers like PVR (22) and Cinemax (15), it is much lower. Due to acquisitions and growth that comes with these acquisitions, company is definitely going to show strong improvement in earnings. It’s an <a href="http://www.indianstocksnews.com/2011/03/small-cap-stock-analysis-inox-leisure.html">attractive investment opportunity in entertainment business</a> for long term investors at Rs.45.<br />
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<span style="font-family: Arial; font-weight: bold;">Other small cap stocks discussed recently</span><br />
<div><ul><li><a href="http://www.indianstocksnews.com/2011/03/small-cap-stock-to-buy-bliss-gvs-pharma.html" target="_blank">Small cap stock to buy - Bliss GVS Pharma</a></li>
<li><a href="http://www.indianstocksnews.com/2011/03/small-cap-growth-stock-analysis-kabra.html" target="_blank">Small cap growth stock analysis - Kabra extrusion technik</a></li>
<li><a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-agre-developers.html" target="_blank">Small cap stock to buy : Agre Developers</a></li>
<li><a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-fedders-lloyd.html" target="_blank">Small Cap Stock To Buy : Fedders Lloyd</a></li>
</ul></div></span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-38121525591946005712011-03-08T07:15:00.004+05:302011-03-12T19:49:13.647+05:30Small cap stock to buy - Bliss GVS Pharma<div dir="ltr" style="text-align: left;" trbidi="on">I came across a small cap stock discussed in ET Investor's guide. After reading the reasoning and some stock analysis, I thought it could be a good small cap stock to buy for long term investing.<br />
<span id="fullpost"><br />
<a href="http://www.indianstocksnews.com/2011/03/small-cap-stock-to-buy-bliss-gvs-pharma.html">Bliss GVS Pharma</a> is a mumbai based 26 year old export oriented fast growing company. The Company is engaged in manufacturing of female contraceptives, soft pessaries and suppositories. The products are marketed under the brand name 'Today'. Company's products include nonoxynol 9 vaginal contraceptive, 100 milligram (MG) clotrimazole vaginalpessaries and suppositories, and hydrocortisone anal suppositories.<br />
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The Company also manufactures to United States specification vaginal pessaries of Clotrimazole and Povidone Iodine in addition to anal suppositories for treatment of piles. During FY10, exports to unregulated markets contributed over 95% of the total revenues of the company. Bliss has a significant presence in most African markets through selling branded suppository dosages and anti-malarial formulations. Company is the largest manufacturer of suppositories and pessaries in India — selling them under its own brands and manufacturing them for other pharma companies.<br />
<span style="font-weight: bold;"><br />
Growth opportunities for company</span><br />
The company is ramping up its manufacturing capacities to cater to the increasing demand for suppositories. Its new plant in Thane would be in full capacity production mode by September 2011. The company is planning capex of Rs 35-40 crore in FY11 and FY12. They intend to commission an R&D centre in this year.<br />
<br />
<span style="font-family: Arial; font-weight: bold;">Other small cap stocks discussed recently</span><br />
<div><ul><li><a href="http://www.indianstocksnews.com/2011/03/small-cap-stock-analysis-inox-leisure.html" target="_blank">Small cap stock analysis - INOX Leisure ltd</a></li>
<li><a href="http://www.indianstocksnews.com/2011/03/small-cap-growth-stock-analysis-kabra.html" target="_blank">Small cap growth stock analysis - Kabra extrusion technik</a></li>
<li><a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-agre-developers.html" target="_blank">Small cap stock to buy : Agre Developers</a></li>
<li><a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-fedders-lloyd.html" target="_blank">Small Cap Stock To Buy : Fedders Lloyd</a></li>
</ul></div><span style="font-weight: bold;">Stock valuation</span><br />
As on March 2010, company had reserves of 122 crores. For a company with 245 crores market cap, it is very good amount of reserve funds. Company had debt of only 7.64 crore. Company has constantly increasing sales turnover with constant growth in net profits too.<br />
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At current stock price, Bliss GVS Pharma is available at P/E multiple of 5 which is below industry average. Dividend yield comes at 2%. The stock is available near it's 52 week low. One may invest in it for long term (2-3 years minimum).</span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-24628156825232395172011-03-02T07:59:00.006+05:302011-03-12T19:51:31.937+05:30Small cap growth stock analysis - Kabra extrusion technik<div dir="ltr" style="text-align: left;" trbidi="on">Here is one lesser known and less discussed small cap stock, Kabra Extrusiontechnik. This is a steadily growing company and can generate good returns in 2011 and beyond.<br />
<span id="fullpost"><br />
Kabra Extrusion Technik is engaged in the capital goods sector, manufacturing plastic extrusion machinery, specializing in manufacturing of plants to produce a range of plastic pipes like polyvinyl chloride (PVC), high-density polyethylene (HDPE), low-density polyethylene (LDPE), polypropylene (PP) and composite pipes.<br />
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The Company's major products are plastic processing machineries and parts of plastic processing machinery. These products cater two types of industries: Pipe and Films. Company is a domestic leader in extrusion machinery.<br />
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Company recently launched new product for manufacturing drip irrigation tube lines in collaboration with Drip Research Technology Services from US. They are in planning stage to launch new high-speed multi-layer blown films plants in FY 2011.<br />
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The company is also planning to make an investment of Rs.85 crore. This investment will more than double its gross block by FY 2012. India’s plastic consumption could double in next six years.<br />
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Industry experts believe that investment of nearly $10 billion would be required in the plastic processing industry to meet the future demands. Such big investments in the plastic processing industry will be a key growth driver for sector and so for the company.<br />
<br />
<span style="font-family: Arial; font-weight: bold;">Other small cap stocks discussed recently</span><br />
<div><ul><li><a href="http://www.indianstocksnews.com/2011/03/small-cap-stock-analysis-inox-leisure.html" target="_blank">Small cap stock analysis - INOX Leisure ltd</a></li>
<li><a href="http://www.indianstocksnews.com/2011/03/small-cap-stock-to-buy-bliss-gvs-pharma.html" target="_blank">Small cap stock to buy - Bliss GVS Pharma</a></li>
<li><a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-agre-developers.html" target="_blank">Small cap stock to buy : Agre Developers</a></li>
<li><a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-fedders-lloyd.html" target="_blank">Small Cap Stock To Buy : Fedders Lloyd</a></li>
</ul></div><span style="font-weight: bold;">Stock valuations</span><br />
Kabra Extrusion Technik has been growing at 15.5% (sales) for 3 years CAGR. At the same time profit after tax (PAT) has shown 3 year CAGR growth of 43.5%. <br />
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At current price of Rs.59.5, stock trades at P/E of around 8. Dividend yield comes at healthy 5.8%. Kabra extrusion has paid dividend consistently for last 7 years in a row. This makes it a good dividend yielding stock.<br />
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Considering all above mentioned facts, I am adding it to my list of <a href="http://www.indianstocksnews.com/2010/12/stocks-to-buy-in-2011.html" target="_blank">stocks to buy in 2011</a>. <br />
<br />
One may buy stocks in small quantities at all dips for long term investment. It has potential to at least double from current levels in 12-18 months.</span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-44786749190390763972011-01-26T10:11:00.006+05:302011-03-12T19:56:01.819+05:30Small cap stock to buy : Agre Developers<div dir="ltr" style="text-align: left;" trbidi="on">Ashish Chugh, author of Hidden Gems, recently talked about two multibagger small cap stocks to buy on CNBC-TV18. <a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-agre-developers.html">Agre Developers</a> is one of the two small cap stocks he recommended.<br />
<span id="fullpost"><br />
Below is transcript of his discussion on channel CNBC-TV18 outlining merits of Agre Developers as a "<a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-agre-developers.html">small cap stock to buy</a>".<br />
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Agre Developers is a new company which came into existence just about 20-25 days back. It is a Pantaloon group company where there was a scheme arrangement wherein the mall management and mall development business of Pantaloon Retail was demerged and put into a separate company called Agre Developers. Shareholders of Pantaloon Retail were given one share of Rs 10 of Agre Developers for every 20 shares of face value of Rs 2.<br />
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As things stand today, the equity of Agre Developers is about Rs 11 crore and the shareholders of Pantaloon Retail became the shareholders of Agre Developers via the scheme of arrangement. The idea behind this demerger was to enable growth of the mall development and mall management business as a separate entity.<br />
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The current price is about Rs 48-49, equity of Rs 11 crore which means that the marketcap of the company is about Rs 50-55 crore. So you have a Pantaloon group company available at a marketcap of about 50-55 crore. Now, if you see the financials, for the first six months of the current financial year, the revenues are about Rs 45 crore, the company made a net loss of about Rs 1 crore. With annualized revenues of about Rs 90 crore, the marketcap is just about Rs 55 crore, which is not even one time of revenue.<br />
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If you take a look at the balance sheet, the equity is about Rs 11 crore and reserves are close to Rs 250 crore, which means a book value of about Rs 240. As against the book value of Rs 240, you have the stock available at less than Rs 50, which is just about 20% of the book value.<br />
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If you see it in totality, they have a debt of about Rs 85 crore on the balance sheet, which means an enterprise value of about Rs 130-140 crore. As against the enterprise value of Rs 140 crore, the company has got a gross block of about Rs 215 crore and also capital work in progress of Rs 40 crore. Out of this gross block of Rs 215 crore, about Rs 80 crore is hard asset in the form of land and building. This is something which gives a lot of comfort as far as the downside in the stock is concerned.<br />
<br />
<span style="font-weight: bold; font-family: Arial; ">Other small cap stocks discussed recently</span><br />
<div> <ul> <li><a href="http://www.indianstocksnews.com/2011/03/small-cap-stock-analysis-inox-leisure.html" target="_blank">Small cap stock analysis - INOX Leisure ltd</a></li>
<li><a href="http://www.indianstocksnews.com/2011/03/small-cap-stock-to-buy-bliss-gvs-pharma.html" target="_blank">Small cap stock to buy - Bliss GVS Pharma</a></li>
<li><a href="http://www.indianstocksnews.com/2011/03/small-cap-growth-stock-analysis-kabra.html" target="_blank">Small cap growth stock analysis - Kabra extrusion technik</a></li>
<li><a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-fedders-lloyd.html" target="_blank">Small Cap Stock To Buy : Fedders Lloyd</a></li>
</ul></div><br />
They also currently manage about six malls while they have about 24 malls, which will be operational in FY12. In the next one-two years, you can see a massive scalability of operations. Now, this is probably the only listed company involved in mall management business which is a niche business. Being the only listed company and not having any peer group comparison, the valuation, I believe, is just a perception.<br />
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From these levels, the downside looks extremely restricted but given the scalability and the management behind it, this could indeed turn to be a real multibagger if held on for maybe three-five years. If you see the shareholding pattern of the company, promoters hold close to 44%. There is a huge amount of institutional holding in the company - institutions hold close to 37% of the company. A lot of these institutional investors may not be interested in a Rs 50-55 crore marketcap company.<br />
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It is possible that you may see unloading from some of those institutional investors, which maybe an opportunity for the HNI and retail investors. From these levels, the downside looks extremely restricted. There is scalability, which is going to come in the next couple of years and from these levels, the probability of going wrong in the stock seems to be very little.<br />
<br />
Another <a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-fedders-lloyd.html" target="_blank">hidden gem by Ashish Chugh</a> - <a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-fedders-lloyd.html" target="_blank">Fedders Lloyd</a><br />
<br />
</span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-65719091269093040952011-01-26T09:51:00.007+05:302011-03-12T19:58:03.766+05:30Small Cap Stock To Buy : Fedders Lloyd<div dir="ltr" style="text-align: left;" trbidi="on">Ashish Chugh, author of Hidden Gems, recently talked about two multibagger small cap stocks to buy on CNBC-TV18. <a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-fedders-lloyd.html">Fedders Lloyd</a> is one of the two small cap stocks he recommended.<br />
<span id="fullpost"><br />
Below is transcript of his discussion on channel CNBC-TV18 outlining merits of Fedders Lloyd as "<a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-fedders-lloyd.html">small cap stock to buy</a>".<br />
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Fedders Lloyd is a Delhi based company which is primarily into three business segments. They are into refrigeration and air-conditioning, engineering and structural steel business and also operate in the power transmission and distribution business. As far as the air-conditioning and refrigeration business is concerned, they provide air-conditioning solutions mainly for commercial establishments. They cater to institutions like railways, mining, defense segments and corporate sector.<br />
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In the engineering and steel structural business, they provide turnkey fabrication solutions for large industrial projects. In the power transmission and distribution business they provide EPC solutions for power transmission and distribution projects.<br />
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If you look at the financials of the company, FY10 sales were close to Rs 700 crore which were up by 50% compared to FY09. Profit after tax (PAT) was about Rs 40 crore, up from about Rs 11 crore which the company did in FY09. The financial year for this company is from July to June. In Q1 ended September of 2010, they have done sales of close to Rs 190 crore, up by about 18% over the same period last year. Profit after tax was about Rs 11.5 crore, up by about 35%.<br />
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EPS on trailing 12 months basis is close to Rs 15 which means at a current price of about Rs 75-76 the stock is traded at a P/E multiple of just about 5-5.5. If you compare this company with their peer group namely Blue Star and Voltas Ltd, you find a significant undervaluation to the peer group. Voltas and Blue Star, both command a P/E of close to 18-20 times and they have a marketcap of about 1.5 times of their sales.<br />
<br />
<span style="font-family: Arial; font-weight: bold;">Other small cap stocks discussed recently</span><br />
<div><ul><li><a href="http://www.indianstocksnews.com/2011/03/small-cap-stock-analysis-inox-leisure.html" target="_blank">Small cap stock analysis - INOX Leisure ltd</a></li>
<li><a href="http://www.indianstocksnews.com/2011/03/small-cap-stock-to-buy-bliss-gvs-pharma.html" target="_blank">Small cap stock to buy - Bliss GVS Pharma</a></li>
<li><a href="http://www.indianstocksnews.com/2011/03/small-cap-growth-stock-analysis-kabra.html" target="_blank">Small cap growth stock analysis - Kabra extrusion technik</a></li>
<li><a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-agre-developers.html" target="_blank">Small cap stock to buy : Agre Developers</a></li>
</ul></div>In the case of Fedders Lloyd, this company trades at a P/E multiple of about 5-5.5 and as a marketcap to sales of just about 0.35. The marketcap of this company is just about Rs 235 crore and does sales of around Rs 700-750 crore. If you see the balance sheet, this company is asset rich. Out of the total gross block of about Rs 150 crore, they have a freehold land of about Rs 38 crore, a five acre plot which is located at a prime place in South Delhi which maybe very valuable as of now. The main trigger for rerating of Fedders Lloyd is not going to be the property but it is going to be sustainability of earnings. <br />
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The major concern about this company is the low dividend payout. Even though this company makes an earning of about Rs 15, this company pays only Re 1 dividend to the shareholders. That is a bit of a concern. The rerating for the stock could be on account of increased investor friendliness of the company. If they are able to sustain its earnings and grow at the same pace for which it has been growing for the past couple of quarters, I think we could see a rerating of the stock. <br />
<br />
Another <a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-agre-developers.html" target="_blank">hidden gem by Ashish Chugh</a> - <a href="http://www.indianstocksnews.com/2011/01/small-cap-stock-to-buy-agre-developers.html" target="_blank">Agre developers</a> </span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-33887721931897012292010-09-08T07:33:00.002+05:302010-09-08T08:19:08.174+05:30Stock To Buy : Empee DistillariesThis is another stock to buy discussed recently by a stock broker on Moneycontrol who also has advised to buy stocks of <a href="http://www.indianstocksnews.com/2010/09/vls-finance-is-it-stock-to-buy.html" target="_blank">VLS Finance</a>. He has discussed Empee Distillaries as value stock to buy with good potential intrinsic value. Let's see why it is a stock to buy.<br /><span id="fullpost"><br />Empee Distilleries Limited is engaged in the business of manufacturing of Indian made foreign liquor (IMFL) and power. The Company's business segments include Liquor(IMFL), power, sugar and industrial alcoholic plant (IAP).<br /><br />It’s factories include Mevaloorkuppam Village, Sriperumpudur Taluk, Kancheepuram District, Tamil Nadu and Mevaloorkuppam Village, Sriperumpudur Taluk, Kancheepuram District, Tamil Nadu. The two factories at Mevalurkuppam and Palakkad produced 3761337 cases as of March 31, 2009.<br /><br />Empee Distilleries came up with an IPO at Rs 400 in 2007. Current stock price is at RS. 167. The stock has book value of Rs. 132 which is good and near it's stock price. P/E ratio of 13.9 at current stock price is fairly lesser compared to industry standard P/E of 80. Compared to peers like United Breweries, Empee distillaries is available at cheap stock valuations. <br /><br />Market Cap 318.59<br />EPS (TTM) 12.06<br />P/E 13.90<br />P/C 10.99<br />Book Value 132.77<br />Price/Book 1.26<br />Div(%) 50.00%<br />Div Yield(%) 2.98<br />Market Lot 1.00<br />Face Value 10.00<br />Industry P/E 80.86 <br /><br />Empee distillaries has tremendous hidden assets into the company. One of the best is the real estate part where we feel the company would be developing the real estate in the next three years. This real estate development could generate cash flows of more than the current market cap of the company. That means in the next three years the company’s cash flow from the real estate itself will be much more than the current market cap.<br /><br />Empee distillaries has paid a dividend of Rs 6 this year. The dividend yield at this rate is pretty good for even dividend income along with growth opportunities.<br /><br />Company also have a power generation capacity of 10 megawatts. 75% of this generated power is freely salable and only 25% needs to be transferred to Tamil Nadu government. This sale of power adds about Rs 3-4 crores of free cash flow to the bottom-line. Empee distillaries is holding 2.81 crore share of Empee Sugars and Chemicals as investment.<br /><br />Considering the dominating position of company in southern markets, real estate development, small power play and intrinsic value, Empee distillaries is a stock to buy with stock price target of at least Rs. 400 levels in next 2-3 years.<br /><br /></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-46275650848211639152010-09-02T07:17:00.005+05:302010-09-02T08:40:59.818+05:30VLS Finance - Is it a stock to buy ?Recently I read a recommendation to buy stocks of VLS Finance on Moneycontrol by some stock broker. He has discussed VLS Finance as a value stock to buy with good amount of intrinsic value. Let's find out if it is a stock to buy, if yes, at what stock price.<br /><span id="fullpost"><br />VLS Finance Ltd. is a non banking finance company (NBFC). The Company deals/hedges/arbitrages the securities in the capital market and futures, and options securities in the derivative segment. The Company’s subsidiaries include VLS Securities Ltd., VLS Investments Ltd., VLS Asset Management Ltd. and VLS Investment Inc.<br /><br /><span style="font-weight: bold;">VLS Finance's present business:</span><br />* Investment and Merchant Banking activities in 100% subsidiary – VLS Securities Ltd. Registered as a Category I Merchant Banker with the Securities & Exchange Board of India (SEBI) <br />* Proprietary Investments and Equity Research<br />* Corporate Consulting & Advisory Services<br />* Privatization & Infrastructure Finance<br />* Stock Broking in 100% subsidiary – VLS Securities Ltd. Membership to the National Stock Exchange of India Ltd. (NSE)<br /><br />The stock broker discussed about disputed investment of VLS Finance in Delhi metropolitan hotels. It's rough valuations are around Rs. 800 crores. VLS Finance would be holding 87% of this valuation IF court judgment favors VLS Finance.<br /><br />VLS Finance and it's subsidiary holds 14% stocks in Relaxo footware. This stake comes around Rs. 60 crores.<br /><br />I looked at the financial details of VLS Finance. You may <a href="http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=511333" target="_blank">check it here</a>. Company's financial performance is not consistent at all. Variations are big in quarterly numbers. EPS for FY10 was 1.21. For FY 11, if we try to predict it based on June quarters, it would be again around 1 so nothing great in terms of earnings. The facts depending on which stock broker has recommended are: Investment of approx. 60 crores in Relaxo. Current market capital of VLS Finance is Rs. 90 crores. Book value is Rs. 48.41 .<br /><br />At current stock price of 23, stock is available at good discount to it's book value. And disputed investment of VLS Finance in Delhi metropolitan hotel valued at Rs. roughly 600 crores. These facts make VLS finance a stock to buy. Total valuations for VLS could be 600+60+90 i.e. Rs. 750 crores against current market capital of Rs. 90 crores. If the disputed court case judgment favors VLS Finance, it could be valued at market cap of at least Rs. 400 crores. This leaves room for stock price to grow 4 - 5 times and makes VLS finance a stock to buy. <br /><br />Not to forget though, this depends on disputed investment case which is pending in court for judgment. If stock corrects below Rs. 20 levels, one my buy stocks for long term in small quantity.<br /></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-60450638753693725622010-07-27T02:02:00.006+05:302010-07-27T02:27:24.826+05:30SEL Manufacturing - Stock report and commentsKapil Madan, one of Indian Stocks News readers had commented on my year old article, <a href="http://www.indianstocksnews.com/2009/08/small-cap-stock-analysis-sel.html" target="_blank">Small Cap Stock Analysis - SEL Manufacturing</a> and asked me to post my recent views. Taking this opportunity to revisit the article and renew my opinion with a few latest facts.<br /><span id="fullpost"><br />---<span style="font-weight: bold;">Kapil's comment</span>---<br />I could figure out that you wrote this analysis almost an year back when share price of SEL was 67 a share. In the last one year, the share price has seen much ups & downs, specially in the last one month or so. Promotors holdings is going down as well. Also company is coming with an IPO in future. I read somewhere that more than 80% of the equity (other than that of promoters) have changed hands past one month!!<br /><br />Amidst all this, whats your views now on SEL. I am sure 2010 balance sheet is now available for you to review. I and many small & medium investors are curious to know your view on this.<br /><br />Personally, i do not hold any shares of SEL, but definitely planning to acquire some.<br />-----<br /><br />Another regular reader of Indian Stocks News, Devkinandan, have commented on the same:<br />SEL March 2010 Equity - 30.35cr.<br />net profit- 7.79cr.<br />EPS Qtr - 2<br />Promotors holding Mar 08 - 64.5%<br />Dec 08 - 57.27%<br />Sep 09 - 47.43%<br />Mar 10 - 38.67%<br />Promotors lagatar apni holding decreas kar raha hai.March 10 quarter ka net proffit March 09 aur Dec 09 ke adhe se bhi kam hai.DEBT ke bare main Vinay Bhai ne bataya hi hai.<br />-----<br /><br />I just had a look at SEL's latest result ... it says that promoters shareholding is now 19.45% (yes ..it is nineteen). Promoters shareholding is 19.45% and rest 80.55% is with aam aadami (retail investor).<br /><br />You may have a look at the <a href="http://www.bseindia.com/xml-data/corpfiling/AttachHis/SEL_Manufacturing_Company_Ltd1_260710_Rst.pdf" target="_blank">latest SEL manufacturing Results here</a>.<br /><br />The debt on company in March 2009 was Rs. 623 crores. I do not know how much it is in 2010 as I did not get to see it anywhere. But I did get to see that Rs. 34.50 crores was the interest paid by company on it's debt as on DEC. 09 in nine months result.<br /><br />As Devkinandan has pointed out about constantly decreasing promoters shareholding and looking at the latest figures, I don't know why anyone would like to risk one's hard earned money to buy stocks of SEL Manufacturing. Do you want to help promoters in offloading their stocks?<br /><br /></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-48515833549643255702010-07-22T21:22:00.009+05:302010-07-23T01:05:50.803+05:30Small cap stock to buy - Acrysil IndiaCheckout a new <a href="http://www.indianstocksnews.com/2010/07/small-cap-stock-to-buy-acrysil-india.html">small cap stock to buy</a>, Acrysil India, recommended by Ashish Chugh, investment analyst and author of Hidden Gems. He has recently appeared on CNBC TV-18 interview and unearthed his two hidden gem small cap stocks for investors.<br /><span id="fullpost"><br />He has advised investors to buy stock for long-term investment portfolio.<br /><br />Acrysil India is a very small company, which has created a niche for itself in the product which it manufactures. This company manufactures granite and quartz kitchen sinks, which no other company manufactures in India. It has got a virtual monopoly in the granite and quartz kitchen sink. The products of this company has sold under Carysil brand name and that brand is basically become a premium brand for kitchen sinks.<br /><br />Checkout entire verbatim transcript of his <a href="http://www.moneycontrol.com/news/market-outlook/ashish-chugh-unearths-hidden-gems-for-your-portfolio-_471620.html" target="_blank">interview published on Moneycontrol here</a>.<br /><br /><span style="font-weight: bold;">Checkout another </span><a style="font-weight: bold;" href="http://www.indianstocksnews.com/2010/07/small-cap-stock-to-buy-cosmo-films.html" target="_blank">small cap stock recommended by Ashish Chugh</a><span style="font-weight: bold;">: </span><a style="font-weight: bold;" href="http://www.indianstocksnews.com/2010/07/small-cap-stock-to-buy-cosmo-films.html" target="_blank">Cosmo Films</a><br /><br /><span style="font-weight: bold;">Checkout earlier </span><a style="font-weight: bold;" href="http://www.indianstocksnews.com/search/label/Ashish%20Chugh%27s%20Hidden%20Gems" target="_blank">Hidden Gems by Ashish Chugh</a><br /><br /></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-10610398544919065132010-07-22T20:41:00.004+05:302010-07-23T01:06:22.823+05:30Small cap stock to buy - Cosmo FilmsCheckout another <a href="http://www.indianstocksnews.com/2010/07/small-cap-stock-to-buy-cosmo-films.html">small cap stock to buy</a>, <a href="http://www.indianstocksnews.com/2010/07/small-cap-stock-to-buy-cosmo-films.html">Cosmo Films</a>, recommended by Ashish Chugh, investment analyst and author of Hidden Gems. He has recently appeared on CNBC TV-18 interview and unearthed his two hidden gem small cap stocks for investors.<br /><span id="fullpost"><br />He has advised investors to buy stock for long-term investment portfolio.<br /><br />Cosmo Films is a company which manufacturers Bi-axially Oriented Polypropylene Films (BOPP) films and also thermal insulation film. In the thermal insulation film segment this company is the largest player. This company has got two manufacturing plants in Aurangabad, two in Gujarat and besides this the company has got overseas manufacturing facilities in Korea, US and Netherlands.<br /><br />Checkout the entire verbatim transcript of his <a href="http://www.moneycontrol.com/news/market-outlook/ashish-chugh-unearths-hidden-gems-for-your-portfolio-_471620-1.html" target="_blank">interview published on Moneycontrol here</a>.<br /><br /><span style="font-weight: bold;">Checkout another </span><a style="font-weight: bold;" href="http://www.indianstocksnews.com/2010/07/small-cap-stock-to-buy-acrysil-india.html" target="_blank">small cap stock to buy recommended by Ashish Chugh</a><span style="font-weight: bold;">: </span><a style="font-weight: bold;" href="http://www.indianstocksnews.com/2010/07/small-cap-stock-to-buy-acrysil-india.html" target="_blank">Acrysil India</a><br /><br /><span style="font-weight: bold;">Checkout earlier </span><a style="font-weight: bold;" href="http://www.indianstocksnews.com/search/label/Ashish%20Chugh%27s%20Hidden%20Gems" target="_blank">Hidden Gems by Ashish Chugh</a><br /><br /></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-55179026374314025162010-07-20T21:25:00.007+05:302010-07-23T01:06:59.744+05:30Small Cap Stock To Buy - Mahindra Ugine Steel Company<a href="http://www.indianstocksnews.com/2010/07/small-cap-stock-to-buy-mahindra-ugine.html">Stock to buy in metals and steel sector</a>, <a href="http://www.indianstocksnews.com/2010/07/small-cap-stock-to-buy-mahindra-ugine.html">Mahindra Ugine Steel</a> company, had caught my attention when I looked at it's negative PE ratio of -5.21 in FY 2009. It is a small cap stock with big company name tag (Mahindra) around it.<br /><span id="fullpost"><br />I was actually looking for good stocks which were making losses but bare the potential to turn around and start making profits again. There has been a slight delay from my side in posting on Mahindra Ugine as I have already bought stocks of this company at 64 levels around 2 months back. I ignored it meanwhile for sometime as I got busy in my professional life and that I have invested in Mahindra Ugine for long term. 2 - 3 days back I saw some surge in this stock and realised it is already trading at 70 levels now. SO I decided to post asap before it is too late and Indian Stocks News subscribers start cursing me for posting it late.<br /> <br />Mahindra Ugine Steel Co. Ltd. (MUSCO, under SYSTECH sector, belonging to the Mahindra Group is the pioneer & well known manufacturers of alloy steel in the country. The company has three stampings division to manufacture pressed sheet metal components and assemblies in India. The client list is very impressive and all are big names in industry. You can <a href="http://www.muscoindia.com/clients.htm" target="_blank">view the client list here</a>.<br /><br />When you look at the EPS data of company, it was -5.80 for FY 2009, as I have stated earlier about company having negative earnings to price ratio. for FY 2010 EPS was 1.44, company started making profits again. The guidance (estimated EPS) for FY 2011 stands at 5.8 and 7.7 for FY 2012. With this, the P/E ratio for FY 12 is at 9.18 which is very reasonable. <br /><br /><span style="font-weight: bold;">Dividend:</span><br />Company has proposed dividend of Rs 1/- per equity share of Rs. 10/- each, as recommended by the Board of Directors. If it is declared on July 27, 2010, it will be paid on or after July 30, 2010. This dividend return is okay and could increase in coming years as company looks well set for future with capex and expansion plans announced.<br /><br /><span style="font-weight: bold;">Stock price target</span><br />The current stock price is at Rs. 70 Medium term stock price target could be around Rs 80. A good long term stock to buy. And a buy on dips.<br /><br /></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-82046669715792997792010-06-24T18:30:00.002+05:302010-06-24T18:40:30.564+05:30IKF Technologies - Latest NewsIKF Technologies announced today that it has bagged contract from Metlife India Insurance Company. 3- 4 days back, it also announced that it has got a contract from Aircel.<br /><span id="fullpost"><br /><span style="font-weight: bold;">IKF Tech wins BPO contract from Metlife</span><br />The contract work includes providing telecalling activities i.e. BPO and call centre services relating to insurance segment for PAN eastern region initially for a period of 12 months.<br /><br />The contract will further enhance the revenue of the company.<br /><br /><span style="font-weight: bold;">IKF Tech bags BPO contract from Aircel</span><br />The contract work includes providing BPO and call centre services in Eastern region of India which will include Calcutta, the rest of Bengal, North East, Bihar and Orissa and with a capacity of 1,000 work stations.<br /><br />IKF Technologies provides telecom, IT software development, business process outsourcing (BPO) and application maintenance services.<br /><br />Recently, IKF Technologies reported rise of 92.55% in consolidated net profit on y-o-y basis to Rs 100.69 million, while total income increased 27.06% y-o-y basis to Rs 579.37 million for the quarter ended March 2010.<br /><br />Looking at all these developments, future outlook for this small cap stock looks good. A few months back, they had announced the plan to hire 1500 employees. I believe this could become a multibagger stock in long run. Though, lately I did not get to hear anything about their Bio fuel and Internet telecom initiatives. I visited their websites and both the website are down. Does anyone have any insights?<br />Disclaimer: I have invested in this stock.<br /><br /><span style="font-weight: bold;">Related read:</span><br /><a href="http://www.indianstocksnews.com/2008/11/definitive-multi-bagger-in-2012-2015.html" target="_blank">IKF Technologies - For Patient Investors</a><br /><a href="http://www.indianstocksnews.com/2008/11/ikf-technologies-plans-of-investments.html" target="_blank">IKF Technologies - Bio Diesel Story - Buy Stocks To Gain Or Loose</a>.. <br /><br /></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-80002956756576189312010-06-20T00:42:00.006+05:302010-06-30T07:27:30.395+05:30Small Cap Stock To Buy - Jyothi LaboratoriesSmall-cap FMCG stock Jyothy Laboratories has continued its streak of outperforming the broader market indices since August 2009. The stock has nearly tripled in value in the past one year against a 15% rise in the Sensex and a 34% appreciation in ET FMCG Index.<br /><span id="fullpost"><br />The company’s robust financial performance and its foray into new businesses are the major reasons for its superior performance in stock markets. Investors interested in small cap stocks to buy can consider this as a safe stock.<br /><br /><span style="font-weight: bold;">BUSINESS</span><br />The Kerala-based company, which has evolved from a single product proprietary firm to a multi-brand company, involved in the manufacturing and marketing of products in fabric care, mosquito repellant, surface cleaning, personal care and incense sticks. The company’s flagship brand Ujala (fabric whitener) is enjoying a market leadership in its category.<br /><br />Over the years, the company has extended this brand to other product categories such as washing powder and stiffener. Its mosquito repellent brand Maxo has an all-India market share of 22%. Exo, its dishwashing product, has a 24% market share in Southern India and has been raising its market share across the country following its national roll-out in October 2009. The company has also forayed into laundry business by launching a laundry service through its 75% subsidiary Jyothy Fabricare Services (JFSL).<br /><br />The company expects net revenue of Rs 50 crore from this subsidiary this financial year. The company’s most recent venture is the purchase of DEPA technology from DRDO (Defense Research & Development Organisation). This technology offers a repellant formulation that acts as a protection against all blood sucking insects and mosquitoes when applied. This product is slated for a launch in the second quarter of this fiscal and it will be marketed across India and other countries.<br /><br /><span style="font-weight: bold;">GROWTH DRIVERS</span><br />With an aim to increase pan-India presence of its products, the company has increased its spend on advertisements by almost 50% in the year ended March 2010. JFSL is planning to enter Hyderabad, Chennai and Pune and explore franchise route from FY12. The purchase of DEPA technology gives its access to Rs 90-crore outdoor mosquito repellant market, which it expects to touch Rs 200 crore in another two years. With the launch of its product, the company would be able to capture most of this market. It expects this business to contribute 4% to its top line.<br /><br /><span style="font-weight: bold;">STOCK FINANCIALS</span><br />It is a cash-rich company with sound financials. The net sales have grown at a compounded annual growth rate (CAGR) of 12.5% since FY06 to touch Rs 574 crore in the year ended FY10. The net profit jumped by over 11.6% to Rs 80 crore in the same period. To maintain its dividend pay out ratio of 42%, the company increased its dividend per share to Rs 4 from Rs 2 last year.<br /><br />But considering the increase in stock price, dividend yield has fallen from 2.9% to 1.8%. The contribution from fabricare, mosquito repellent, dishwashing products and other is 46%, 31%, 16% and 7% of the revenues, respectively. Brandwise, Ujala has shown a growth of 22.7%, Maxo has shown 28.6%, Exo has shown 50.8% in revenues in FY10. According to the management, JFSL will be able to break even by the end of FY10.<br /><br />Market Cap 1833.09<br />EPS (TTM) 11.03<br />* P/E 22.90<br />P/C 20.26<br />* Book Value 59.58<br />* Price/Book 4.24<br />Div(%) 200.00%<br />* Div Yield(%) 0.79<br />Market Lot 1.00<br />Face Value 1.00<br />Industry P/E 29.89<br /><br /><span style="font-weight: bold;">STOCK VALUATIONS </span><br />The company is at present valued at slightly less than three times its revenues. This stock trades at a price-to-earning (P/E) multiple of around 21.5. The stock seems to be fairly valued at the current levels. It is definitely a mid cap stock to buy and is right investment for long-term investors looking for a company with steady earnings growth and strong free cash flows.<br />Source & Ref: Economic Times & MoneyControl<br /></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-66530187747757815362010-06-17T01:10:00.004+05:302010-06-17T01:20:24.200+05:30Hidden Gems - Stocks To Buy In JuneHere are two small cap stocks to buy in June, discussed by Ashish Chugh, author of Hidden Gems. These two small cap stocks have good potential to fetch very good returns for investor in medium term.<br /><span id="fullpost"><br /><a href="http://www.indianstocksnews.com/2010/06/small-cap-high-dividend-stock-to-buy.html" target="_blank">Tata Metaliks</a> - <a href="http://www.indianstocksnews.com/2010/06/small-cap-high-dividend-stock-to-buy.html" target="_blank">Small Cap High Dividend Stock To Buy</a><br />Tata Metaliks is a part of Tata Group and this has got two manufacturing plants. One is located in West Bengal and the other one is at Redi in Maharashtra. The total capacity is about 6.5 lakh tonne of pig iron and the company claims to be the world’s largest producer of pig iron.<br /><br /><a href="http://www.indianstocksnews.com/2010/06/ivp-limited-hidden-gem-by-ashish-chugh.html" target="_blank">Small Cap Stock To Buy</a> - <a href="http://www.indianstocksnews.com/2010/06/ivp-limited-hidden-gem-by-ashish-chugh.html" target="_blank">IVP Limited</a><br />This is one of the small cap stock to buy in June, as discussed by Ashish Chugh, author of Hidden Gems. was the first large scale Indian venture that offered the latest technology to the Foundry Industry in India.<br /><br /><span style="font-weight: bold;">Also Checkout:</span><br /><a href="http://www.indianstocksnews.com/2010/05/stocks-to-buy-now-hidden-gems-ashish.html" target="_blank">Stocks To Buy Now - Hidden Gems By Ashish Chugh</a><br /><br /><a href="http://www.indianstocksnews.com/2009/10/small-cap-stocks-to-buy-hidden-gems.html" target="_blank">Small Cap Stocks To Buy - Hidden Gems From Ashish Chugh</a><br /><br /></span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-8250945142626504475.post-22152174085423412292010-06-15T22:17:00.003+05:302010-06-15T22:24:07.010+05:30Tata Metaliks - Small Cap High Dividend Stock To BuyThis is another small cap high dividend stock to buy, discussed by Ashish Chugh, author of hidden gems.<br /><span id="fullpost"><br />Tata Metaliks is a part of Tata Group and this has got two manufacturing plants. One is located in West Bengal and the other one is at Redi in Maharashtra. The total capacity is about 6.5 lakh tonne of pig iron and the company claims to be the world’s largest producer of pig iron. This company was performing extremely well till FY08. The company was making profits between Rs 30 and Rs 70 crore for say last four-five years. The company was also making high dividend payments of between 60-70% on a regular basis.<br /><br />FY09 was a bad year for the company. Thanks to the meltdown in the metals which we saw. This company made loss of about Rs 150 crore in FY09. After that the things are beginning to improve. If you see the numbers for the last three quarters the company has made a profit after tax of close to Rs 60 crore. In the March quarter the company has done a PAT of about Rs 24 crore.<br /><br />There are two major things that have happened in the company in the last two years which are going to be hugely positive for the company over a longer term period. One is related to the backward integration and the other one is related to the forward integration. As far as backward integration is concerned company had got licence for about 155 hectors of iron ore mines in Maharashtra. So this is going to reduce the cost of raw material for the company and also it will enable the company to insulate itself against fluctuation in the iron ore prices.<br /><br />The second is that company has put up a ductile iron pipe manufacturing plant in joint venture with a Japanese company which pig iron will be main raw material for manufacture of ductile iron pipe so the company has gone in for higher value added products where the margins are going to be high.<br /><br />This is a company where good potential for profits exist. In the March quarter the company has already done a profit after tax of about Rs 25 crore. Equity capital of the company is about Rs 25 crore which means an EPS of Rs 10 in one quarter. Company has the potential to do about Rs 80 crore of profit in one year which means an EPS of close to Rs 30-35. Once the ductile iron pipe manufacturing and the backward integration is also operational the profits can go up much higher. Market cap of the company at current price is about Rs 300 crore.<br /><br />So you have a Tata Group company which is available at four years of its profits on conservative basis and as higher value addition and backward integration go into operation the profits can only increase. The valuation on the current price is very attractive. There are concerns because the company had skipped dividend last year owing to the loss which it suffered. This year the company has till now not announced any dividend, but these negatives should be utilized by the investors to buy stock at lower levels because the long term potential of the stock looks very good.<br /></span>Unknownnoreply@blogger.com