First of all, I would like to make it clear that, all the stocks mentioned below are very very small companies with market capitalization of less than 50 Cr (except 3) and free float of less than 10 Cr approx.
Such stocks can swing very heavily in either direction. Hence, I am not suggesting anyone to buy/sell, but this post is just based on some research that I have done.
According to current scenario, I rate these stocks high and likely candidate for multibaggers in future. It may change later.
1) Dai-Ichi Karkaria Ltd:
Dai-Ichi Karkare Limited (DIKL) was set up in 1960 as a private limited company for the manufacture of speciality chemicals. The Company entered into technical collaboration with the internationally known speciality chemicals manufacturer Dai-Ichi Kogyo Seiyaku Co. Limited of Kyoto, Japan (DKS) and commenced commercial production in 1963. The Company's plant is located at Kasarwadi, Pune. Speciality chemicals belong to a class of products which are tailor made and function specific. These Chemicals find use in a wide range of industries.
Not one, but there are plenty of indicators that suggests this stock becoming a huge multibagger in the long run.
Promoters of the company are contantly buying shares from open market, and that is very well reflected through the consistent performance of the company in past few years. The growth rate is not great but its consistent.
Off-late, they have been able to post some good numbers, especially Sept'13. May be its an indication of sales picking up, as I could not find anything in press release which shows benefit from any other operations in this quarter. The company has healthy number of assets, due to which the book value stands at 90 Rs vs current market price of 54 Rs. The debt is also very low at 1.13 Cr. The company has always made good profits from their operations. Considering the FY13 EPS of 6, the company at current is trading at PE of 9 vs Industry PE of 27. EPS for Sept'13 quarter alone was 10.5. The company is regularly paying good dividend, and because of good performance, they paid a small special dividend also, this year.
All these factors makes it an interesting script to have a look at.
2) Paushak Ltd:
Paushak is part of the Alembic group of companies situated in Gujarat, India. Alembic Ltd is the oldest pharmaceutical company in India founded in 1907 and has celebrated a "hundred years of excellence". Over the years Paushak has established a multi-product capability in Phosgene & its derivatives manufacturing.
Strengths:
a) 35 years of safe Phosgene handling
b) 100 year history in chemical synthesis
c) In-house R&D and process development capability
d) Infrastructure for progressive scale-up 5L to 10KL
e) Robust quality and safety management systems
f) Continuous cost optimization program
Another low debt company, which has been consistently performing well, and the business seems to have picked up since last year. In FY13, they showed a sales growth of 51% and Net Profit growth of 125% approx vs FY12. After completion of H1 FY14, it seems they will again be able to post a sales growth of close to 40% and net profit growth of 75% approx for the full year. The company has strong promoter holding of close to 67% and they have regularly been paying good dividend. The debt stands at a meager 1.17 Cr, and the book value of 118 Rs is again, higher than the current market price of 104 Rs.
3) Superhouse Ltd:
Superhouse Group , is a multi- unit and multi- product conglomerate with brand leadership in the field of footwear manufacturing and exports. The Group is well equipped with the most modern machineries and a specialized workforce and produces all types of quality leather, leather goods and textile garments that are appreciated all over the world.
A US $75 million group, Superhouse Group has 15 units, with a workforce of over 5000 and a presence in more than 35 countries. Our commitment to quality is reaffirmed by our ISO 9002 certification. Stringent EN 345-norms make us one of the most respected manufacturers amongst importers from European countries. Being equipped with requisite infrastructure and strict adherence to high standards of quality, we are able meet CSA, ANZ & and SABS standards.
The stock was always in the eyes of investors, but I think there was a wait for a dramatic quarter, which could bring the interest back, and it did came in Sept'13 results. Since the day when results were out, the volumes have suddenly took off even when the stock is in PCA segment, with maximum amount of shares going into delivery. The stock price has jumped by 44% in 6 trading sessions after results. Promoters have time and again bought shares from open market in small quantities. The sales growth again is not huge but still consistent. The portability is good. Annual EPS is increasing by 2 Rs every year since FY11. This year, the expectations are much more with very good performance is first 2 quarter of this fiscal mainly because of good earnings from export due to Rs depriciation. The debt is slightly on the higher side in this counter, but still company sits at a strong book value of close to 150 Rs per share vs current price of 75 Rs. Based on FY13 numbers, the company has a PE of less than 4, even at current market price vs an industry PE of 28.
ALL OF THE ABOVE STOCKS ARE TRADING IN PCA SEGMENT.
Apart from these stocks, there is one more which is worth mentioning, thanks to Ipogenius, Arrow Coated Products.
The stock looks very strong fundamentally. I will post more details about it, when I have enough information. The good point is that, it is already suggested by many experts, and hence you will be able to find all the details over there. I will try my best to get something, which is not mentioned on other blogs so far.
Disclosure: I have not invested in any of the stocks mentioned above. Because of PCA segment, and low market capitalization, there is enough risk associated with such stocks. Hence, take your decisions wisely and according to your risk appetite. To an extent, I love taking risk with small amount of money, hence I will try to get into all of these stocks soon, with a small amount.
Sunday, November 24, 2013
Saturday, November 16, 2013
Photoquip India - Q2 Result Update
Financial Results & Limited Review for Sept 30, 2013
Link: Click Here
Management on CORVI Products:
We have very ambitious plans for our CORVI range of products and we are on course. As of date we have logged a turnover of Rs. 1,162 lacs since the commencement of the operations in December 2012. Out of this Rs. 250 lacs was in the the previous financial year 2012-13.
Additionally this month we are launching 3 new products to expand our current range from 4 to 7 products. With their colour / wattage variations the total product portfolio is 72 SKUs as of now.
To repeat we foresee a bright future for CORVI.
Management On Slowdown in Sales of Digital Studio Flash Lights:
Yes, the market for Digital Studio Flash Lights is sluggish, especially on the export front. The off-take is slow as compared to the past. But traditionally the second half has always been better than the first half as it coincideds with the beginning of our festive season and Christmas / New Year abroad. So, even though the demand is sluggish, we hope to bounce back in the second half.
New Ad Of CORVI LED Lights (Thanks to ipogenius for this link):
httpv://www.youtube.com/watch?v=wSiLIlvGY6k
Talking about Q2 Numbers, the biggest positive was that the company has again started making good profit, which was seen after a break of 2 quarters on the account of commencement of new venture by the company, which involves lots of expenses.
Revenues were up by 20% from 15.73 Cr to 18.93 Cr YoY, on the back of good sales of CORVI Products.
Net Profit was up by 45% from 0.6 Cr to 0.88 Cr YoY.
EPS is standing tall this time at 1.82.
My Views:
Everyone knows, that I am not a big fan of net profit, I would rather prefer company showing more growth in sales. But this time, coming to profits was necessary for Photoquip, because many many investors, who believed in bright future of the company had lost interest in the company, because of past few results.
I agree to the fact the company is not able to improve sales in Photographic products, which was their core business, but still it has started its new venture, which is doing slightly better than expected.
As of Oct end, we have a data saying that the total sales of CORVI range of products is 11.62 Cr, out of which 2.5 Cr was in FY12-13. Hence, so far in 7 months, they have been able to sell products worth 9.12 Cr. Going by this pace, if they are able to show a figure of 20 Cr sales by the end FY13-14, I would be more than happy, as it will be considered a very good start for a new venture.
I wont comment much about the stock price movement as of now, but certainly, future looks bright to me.
I, myself is a big fan of innovations, and this company has time and again showed that in their business, hence I am loving it.
One can certainly invest at the current market price.
Link: Click Here
Management on CORVI Products:
We have very ambitious plans for our CORVI range of products and we are on course. As of date we have logged a turnover of Rs. 1,162 lacs since the commencement of the operations in December 2012. Out of this Rs. 250 lacs was in the the previous financial year 2012-13.
Additionally this month we are launching 3 new products to expand our current range from 4 to 7 products. With their colour / wattage variations the total product portfolio is 72 SKUs as of now.
To repeat we foresee a bright future for CORVI.
Management On Slowdown in Sales of Digital Studio Flash Lights:
Yes, the market for Digital Studio Flash Lights is sluggish, especially on the export front. The off-take is slow as compared to the past. But traditionally the second half has always been better than the first half as it coincideds with the beginning of our festive season and Christmas / New Year abroad. So, even though the demand is sluggish, we hope to bounce back in the second half.
New Ad Of CORVI LED Lights (Thanks to ipogenius for this link):
httpv://www.youtube.com/watch?v=wSiLIlvGY6k
Talking about Q2 Numbers, the biggest positive was that the company has again started making good profit, which was seen after a break of 2 quarters on the account of commencement of new venture by the company, which involves lots of expenses.
Revenues were up by 20% from 15.73 Cr to 18.93 Cr YoY, on the back of good sales of CORVI Products.
Net Profit was up by 45% from 0.6 Cr to 0.88 Cr YoY.
EPS is standing tall this time at 1.82.
My Views:
Everyone knows, that I am not a big fan of net profit, I would rather prefer company showing more growth in sales. But this time, coming to profits was necessary for Photoquip, because many many investors, who believed in bright future of the company had lost interest in the company, because of past few results.
I agree to the fact the company is not able to improve sales in Photographic products, which was their core business, but still it has started its new venture, which is doing slightly better than expected.
As of Oct end, we have a data saying that the total sales of CORVI range of products is 11.62 Cr, out of which 2.5 Cr was in FY12-13. Hence, so far in 7 months, they have been able to sell products worth 9.12 Cr. Going by this pace, if they are able to show a figure of 20 Cr sales by the end FY13-14, I would be more than happy, as it will be considered a very good start for a new venture.
I wont comment much about the stock price movement as of now, but certainly, future looks bright to me.
I, myself is a big fan of innovations, and this company has time and again showed that in their business, hence I am loving it.
One can certainly invest at the current market price.
Tuesday, November 12, 2013
Suven Life Sciences - Q2 Result Update
Financial Results with Results Press Release & Limited Review for Sept 30, 2013
Link: Click Here
Communication to investors - Sep 2013
Link: Click Here
Once again the company was successful in delivering numbers which proved to be way beyond expectation of many, and hence the stock continues to be in strong upside momentum.
Below post was written on 4th June 2013, when the stock was trading around 25 levels, and in just 5 months, it has appreciated to 80 levels, the growth of more than 200%.
http://fundamentalstockideas.in/few-more-multibaggers-for-long-term/
Sales showed a 202% growth from 50.3 Cr to 151.5 Cr YoY.
Revenues showed an even better growth of 602% from 6.5 Cr to 45.5 Cr YoY.
As per company, the major thrust in net profit was due to in 1 new product, in addition to 2 products which were already commercialized during first quarter.
EPS now stands at 3.9 from 0.56 YoY.
There was something exciting in Expense segment also, where the R&D expense shooted up to 17.9 Cr from 6.83 Cr last year, which might further help the company in growing stronger.
My Views:
Not sure about new entries, but those holding can continue to hold, if they still have guts to hold for longer term. I am also positive for new entries also looking at the R&D expense of the company. The only worry is that the stock price has already appreciated more than 200% in last 5 months, but still, you never know what levels are sufficient to justify strong growth performance by the company.
Link: Click Here
Communication to investors - Sep 2013
Link: Click Here
Once again the company was successful in delivering numbers which proved to be way beyond expectation of many, and hence the stock continues to be in strong upside momentum.
Below post was written on 4th June 2013, when the stock was trading around 25 levels, and in just 5 months, it has appreciated to 80 levels, the growth of more than 200%.
http://fundamentalstockideas.in/few-more-multibaggers-for-long-term/
Sales showed a 202% growth from 50.3 Cr to 151.5 Cr YoY.
Revenues showed an even better growth of 602% from 6.5 Cr to 45.5 Cr YoY.
As per company, the major thrust in net profit was due to in 1 new product, in addition to 2 products which were already commercialized during first quarter.
EPS now stands at 3.9 from 0.56 YoY.
There was something exciting in Expense segment also, where the R&D expense shooted up to 17.9 Cr from 6.83 Cr last year, which might further help the company in growing stronger.
My Views:
Not sure about new entries, but those holding can continue to hold, if they still have guts to hold for longer term. I am also positive for new entries also looking at the R&D expense of the company. The only worry is that the stock price has already appreciated more than 200% in last 5 months, but still, you never know what levels are sufficient to justify strong growth performance by the company.
Ricoh India - Q2 Result Update (Delisting Approved)
Financial Results & Limited Review for Sept 30, 2013
Link: Click Here
Outcome of Board Meeting (approves Delisting Proposal)
Link: Click Here
There is nothing more left to say in this counter, as almost none was interested to have a look at results today. Only a sparkle, in form of news that mentioned that the board is planning to delist Ricoh India from BSE on Friday, was enough for the stock to hit 20% upper circuit today.
Ricoh India said that the main objectives of the delisting is to obtain full ownership, which will provide the promoter group with increased operational flexibility to support the company's business and to provide an exit opportunity to the public shareholders.
In all of these, one should not forget the fact that, the company came out with very strong set of numbers today.
Revenues stood at 296.22 Cr Vs 159.68 Cr YoY, which means the sales grew by almost 86%.
Compared to the loss of 6.23 Cr last year, the company managed to post a meager profit of 96 Lacs, but still thats an achievement considering the fact that, they suffered a huge 43.75 Cr loss due to rupee depreciation, which was nil last year.
Considering that in profit, the company would have reported an EPS of close 10-11 vs -1.57 last year.
But due to that loss, the EPS stands at 0.01, which is still good when compared with -1.57 last year.
Here, I am not mentioning anything about the target price and all, because now, the prices wont react to current numbers or future speculations anymore. The news about the delisting date and price, would decide the height the upside left in this counter.
Link: Click Here
Outcome of Board Meeting (approves Delisting Proposal)
Link: Click Here
There is nothing more left to say in this counter, as almost none was interested to have a look at results today. Only a sparkle, in form of news that mentioned that the board is planning to delist Ricoh India from BSE on Friday, was enough for the stock to hit 20% upper circuit today.
Ricoh India said that the main objectives of the delisting is to obtain full ownership, which will provide the promoter group with increased operational flexibility to support the company's business and to provide an exit opportunity to the public shareholders.
In all of these, one should not forget the fact that, the company came out with very strong set of numbers today.
Revenues stood at 296.22 Cr Vs 159.68 Cr YoY, which means the sales grew by almost 86%.
Compared to the loss of 6.23 Cr last year, the company managed to post a meager profit of 96 Lacs, but still thats an achievement considering the fact that, they suffered a huge 43.75 Cr loss due to rupee depreciation, which was nil last year.
Considering that in profit, the company would have reported an EPS of close 10-11 vs -1.57 last year.
But due to that loss, the EPS stands at 0.01, which is still good when compared with -1.57 last year.
Here, I am not mentioning anything about the target price and all, because now, the prices wont react to current numbers or future speculations anymore. The news about the delisting date and price, would decide the height the upside left in this counter.
Friday, November 8, 2013
Gulshan Polyols - Q2 Result Update
Financial Results & Limited Review for Sept 30, 2013
Link: Click Here
Rising Demand from Paper and Plastic Industries Drives the Global Calcium Carbonate Consumption, According to New Report by Global Industry Analysts, Inc.
Link: Click Here
Above is one of the reports on demand of Calcium Carbonate, which is encouraging, as Gulshan Polyols Ltd produces over 19 grades of Calcium Carbonate. I found similar reports on demand of Sorbitol also, which shows that sales of Sorbitol will continue to grow at 3.5% till 2018.
Looking at this quarter's number. the sales did continue to grow in the manner it has been in last 4 quarters. But the stock still looks far away from getting the correct valuations, based on its strong book value and consistent profitability.
Net Sales stands at 77.65 Cr Vs 68.39 Cr YoY, which shows 14% growth.
Net Profit stands at 5.13 Cr Vs 4.74 Cr YoY, which shows 8% growth.
Hence the EPS now stands at 6.07 Vs 5.61 YoY.
My Views:
There is still nothing wrong in investment made in Gulshan Polyols at this point of time, but only issue is that, we are not sure when it will start moving up. If you look at any fundamental data, all will suggest you to buy this stock, but still it is stagnant. Promoter holding as on Sep 13 has jumped to 71.94% from 68.87% last quarter. Book value of the company stands at 174 Rs.
Half yearly EPS stands at 14. Even if it continues to report same sort of numbers, it will be able to make annual EPS of close to 30. P/E ratio will come out to be only 2 at current market price, where as the industry P/E stands at 28.
What we can do, is to wait for the stock to get re-rated. Until then, if you are a long term investor, you can definitely make an entry at this price. Otherwise, wait for the stock to start moving up with strong volumes, and then make an entry. The only assurance that can be made now, is that the downside in this stock is very limited.
Link: Click Here
Rising Demand from Paper and Plastic Industries Drives the Global Calcium Carbonate Consumption, According to New Report by Global Industry Analysts, Inc.
Link: Click Here
Above is one of the reports on demand of Calcium Carbonate, which is encouraging, as Gulshan Polyols Ltd produces over 19 grades of Calcium Carbonate. I found similar reports on demand of Sorbitol also, which shows that sales of Sorbitol will continue to grow at 3.5% till 2018.
Looking at this quarter's number. the sales did continue to grow in the manner it has been in last 4 quarters. But the stock still looks far away from getting the correct valuations, based on its strong book value and consistent profitability.
Net Sales stands at 77.65 Cr Vs 68.39 Cr YoY, which shows 14% growth.
Net Profit stands at 5.13 Cr Vs 4.74 Cr YoY, which shows 8% growth.
Hence the EPS now stands at 6.07 Vs 5.61 YoY.
My Views:
There is still nothing wrong in investment made in Gulshan Polyols at this point of time, but only issue is that, we are not sure when it will start moving up. If you look at any fundamental data, all will suggest you to buy this stock, but still it is stagnant. Promoter holding as on Sep 13 has jumped to 71.94% from 68.87% last quarter. Book value of the company stands at 174 Rs.
Half yearly EPS stands at 14. Even if it continues to report same sort of numbers, it will be able to make annual EPS of close to 30. P/E ratio will come out to be only 2 at current market price, where as the industry P/E stands at 28.
What we can do, is to wait for the stock to get re-rated. Until then, if you are a long term investor, you can definitely make an entry at this price. Otherwise, wait for the stock to start moving up with strong volumes, and then make an entry. The only assurance that can be made now, is that the downside in this stock is very limited.
Tuesday, November 5, 2013
Granules India - Latest News
Granules India to buy Auctus Pharma for Rs 120 crore:
Tablet maker Granules India has entered into an agreement to acquire Auctus Pharma, a manufacturer of Active Pharmaceutical Ingredients (APIs), for Rs 120 crore.
"The acquisition of Auctus fits into our strategy of being a fully integrated manufacturer, while diversifying our product portfolio by adding high-value products with significant market demand. Auctus provides Granules with a meaningful API platform with a US FDA approved site to strengthen our finished dosage division,’ Krishna Prasad, Managing Director of Granules India, said in a release issued on Monday.
Auctus manufacturing units:
Hyderabad-based Auctus has two manufacturing facilities, an API facility at Pharmacity in Visakhapatnam and an Intermediate facility in Hyderabad. The API facility has approvals from leading regulatory agencies, including the US FDA.
Auctus’ product portfolio includes 12 APIs as well as key intermediates of those APIs.
Auctus product portfolio:
The portfolio includes APIs in several therapeutic categories such as Antihistaminic, Antihypertensive, Antithrombotic and Anticonvulsant as well as other therapeutic categories.
Auctus currently sells its APIs and intermediates to customers in 50 countries. The team and assets from the acquisition will initially operate as a separate division with Granules.
The acquisition process would be completed in the next three to six months, the Hyderabad-based company said in the release.
R&D unit in Hyderabad
Granules also announced the opening of a 10,000 sq. ft. R&D facility in Hyderabad.
The new R&D unit will focus on full-scale generic API development and will supplement the company’s existing R&D facility in Pune which currently focuses on sustainable technology development.
Source: The Hindu Business Line
About Auctus Pharma:
Auctus Pharma Limited (APL) is amongst India’s top manufacturers of Active Pharmaceutical Ingredients (APIs) and Drug Intermediates for both Domestic and International customers. Our other successful group company (Neo Medichem Pvt. Ltd) was merged with Auctus Pharma Limited. This move shall add strength and synergies to the company, which is promoted by a dynamic team of techno-commercial professionals with extensive experience in the line.
Auctus Pharma operates from their state of the art manufacturing facilities, out of which one unit I situated near Hyderabad and other one at Visakhapatnam. The Company has an R&D intensive work ethic as a result of the futuristic and progressive outlook of the promoters. The full fledged R & D laboratory is therefore, constantly updated with the latest equipment and is always completely geared up for every requirement.
Using their vast and varied expertise, Auctus Pharma manufactures Active Pharmaceutical Ingredients (APIs), Fine Chemicals and Intermediates for their wide clientele across the world
Tablet maker Granules India has entered into an agreement to acquire Auctus Pharma, a manufacturer of Active Pharmaceutical Ingredients (APIs), for Rs 120 crore.
"The acquisition of Auctus fits into our strategy of being a fully integrated manufacturer, while diversifying our product portfolio by adding high-value products with significant market demand. Auctus provides Granules with a meaningful API platform with a US FDA approved site to strengthen our finished dosage division,’ Krishna Prasad, Managing Director of Granules India, said in a release issued on Monday.
Auctus manufacturing units:
Hyderabad-based Auctus has two manufacturing facilities, an API facility at Pharmacity in Visakhapatnam and an Intermediate facility in Hyderabad. The API facility has approvals from leading regulatory agencies, including the US FDA.
Auctus’ product portfolio includes 12 APIs as well as key intermediates of those APIs.
Auctus product portfolio:
The portfolio includes APIs in several therapeutic categories such as Antihistaminic, Antihypertensive, Antithrombotic and Anticonvulsant as well as other therapeutic categories.
Auctus currently sells its APIs and intermediates to customers in 50 countries. The team and assets from the acquisition will initially operate as a separate division with Granules.
The acquisition process would be completed in the next three to six months, the Hyderabad-based company said in the release.
R&D unit in Hyderabad
Granules also announced the opening of a 10,000 sq. ft. R&D facility in Hyderabad.
The new R&D unit will focus on full-scale generic API development and will supplement the company’s existing R&D facility in Pune which currently focuses on sustainable technology development.
Source: The Hindu Business Line
About Auctus Pharma:
Auctus Pharma Limited (APL) is amongst India’s top manufacturers of Active Pharmaceutical Ingredients (APIs) and Drug Intermediates for both Domestic and International customers. Our other successful group company (Neo Medichem Pvt. Ltd) was merged with Auctus Pharma Limited. This move shall add strength and synergies to the company, which is promoted by a dynamic team of techno-commercial professionals with extensive experience in the line.
Auctus Pharma operates from their state of the art manufacturing facilities, out of which one unit I situated near Hyderabad and other one at Visakhapatnam. The Company has an R&D intensive work ethic as a result of the futuristic and progressive outlook of the promoters. The full fledged R & D laboratory is therefore, constantly updated with the latest equipment and is always completely geared up for every requirement.
Using their vast and varied expertise, Auctus Pharma manufactures Active Pharmaceutical Ingredients (APIs), Fine Chemicals and Intermediates for their wide clientele across the world
Sunday, November 3, 2013
Cera Sanitaryware - Q2 Result Update
Financial Results & Limited Review for Sept 30, 2013
Link: Click Here
Results Press Release
Link: Click Here
Company Report
Link: Click Here
Excellent sales growth shown by the company, but was disappointing to see the Net Profit go down YoY basis. But the sales numbers were really impressive considering their majority of India based business.
Revenues stood at 158.76 Cr as against 111.36 Cr a year before, which shows a jump 42.5% in sales.
Net Profit actually came down to 10.62 Cr from 11 Cr a year before. The reason being the Power and fuel expense went up, which is always expected in growing business and high fuel prices, and higher employee benefit expense, up by almost 50 lacs compared to last year, which is good for the future of the company.
My Views:
This is one stock, which is trading at a P/E, which is higher than overall industry. The reason being, investors have lots of confidence in the future prospects of the company. That's why I said earlier, that Cera is definitely not a multi-bagger candidate, but can give you very good returns. If it would have been rightly identified around 200 levels last year, then it would have a multi-bagger from those levels.
Again, before the results, it made a high of 625, but the net profit figures, brought it back to 570 levels. Once it comes to around 550 levels, one can make a fresh entry, for those who missed it at 500 levels. A fall in net profit is never appreciated by short term traders, and hence it is witnessing some profit booking, but I am sure, it will make a comeback, once trader are out.
Link: Click Here
Results Press Release
Link: Click Here
Company Report
Link: Click Here
Excellent sales growth shown by the company, but was disappointing to see the Net Profit go down YoY basis. But the sales numbers were really impressive considering their majority of India based business.
Revenues stood at 158.76 Cr as against 111.36 Cr a year before, which shows a jump 42.5% in sales.
Net Profit actually came down to 10.62 Cr from 11 Cr a year before. The reason being the Power and fuel expense went up, which is always expected in growing business and high fuel prices, and higher employee benefit expense, up by almost 50 lacs compared to last year, which is good for the future of the company.
My Views:
This is one stock, which is trading at a P/E, which is higher than overall industry. The reason being, investors have lots of confidence in the future prospects of the company. That's why I said earlier, that Cera is definitely not a multi-bagger candidate, but can give you very good returns. If it would have been rightly identified around 200 levels last year, then it would have a multi-bagger from those levels.
Again, before the results, it made a high of 625, but the net profit figures, brought it back to 570 levels. Once it comes to around 550 levels, one can make a fresh entry, for those who missed it at 500 levels. A fall in net profit is never appreciated by short term traders, and hence it is witnessing some profit booking, but I am sure, it will make a comeback, once trader are out.
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