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.
Heartiest Diwali wishes to all the readers.....
ReplyDeleteHope this Diwali brings lots of prosperity to you and your family,..
Mahurat Trading Session will be held today from 6.15 PM to 7.30 PM for 75 mins....
ReplyDeleteCera is the next ttk prestige kunal. It will very soon occupy the second position in indian sanitaryware segment, one shouldnt be bothered much about qtr to qtr results, still if you see cera's half yearly result has stood at 21cr against 20cr last year the increase in revenue above 50 % is no ordinary feat.i firmly believe that this will trade above 1000rs by next year end.It deserves....regarding management,they walk the talk:-) hence i am vested in this beauty...i will continue buying cera even at 1000rs.
ReplyDeleteAny thoughts about how the next two quarters may pan out for cera, will the expenses keep rising or you think they may curtail it to present levels.
ReplyDeleteAnother stock i am accumulating is avanti feeds. Kindly let me know your thoughts.
ReplyDeleteAvanti Feeds has shown probably the best growth story among all small cap companies....
ReplyDeleteI mentioned about the stock earlier in the comments section of some other post and I mentioned that, I am involved in doing risk analysis for holding this stock for long term.....
Currently the company is performing brilliantly, and based on current numbers, it is still undervalued at a PE of 5....
The company is involved in export of shrimps to foreign markets, which is generating most of the revenues for them.... My only concern is that, whether this demand for shrimp will keep on growing continuously, or is there an end to it somewhere....?
In any case, if there is a slowdown in demand (which is nowhere close to current scenario of increasing demand every year), then, the share price might take a hit...
I would only advise that, keep on holding it till its in the uptrend, and enjoy the profits.... but keep an eye on it. If you anytime find that stock has fallen about 20-25% continuously, there should be something to do with the demand of shrimp... Check it out and try to book profits immediately in that case...
For now, that doesnt look like happening in the short term,.... so you can defnitely continue to hold.... the fair value is somewhere close to 300 for now...
Agree with you there, but difficult to say if it will hit 1000 by next year.....
ReplyDeleteFor that to happen, company has to increase profitability by a good margin...
If the company is able to generate an EPS of 60-70 annually, then that magical price of 4 figures is possible....
As I mentioned earlier also, that this stock is trading at a PE higher than overall industry.... so the company has to live up to that expectations of investors...
And by expectations, I just dont mean revenue growth, but also the growth in net profit....
I am not sure by when it can hit 1000, but for sure, I am not getting out of this stock in short term, even if they disappoint a few in terms of net profit in a quarter here and there...
For me, if company is going strong with revenue growth, I will stick to it.....
If you say, it deserves 1000 by next year, I would agree with you, but unfortunately, the price is not in our hand... :-)
Lets hope for the best!!!!!!
Thanks a ton kunal.
ReplyDeleteYes kunal, the demand of shrimps in india alone has gone up by 50%, their brand veenamai requires a temp of 25 to 30deg,ideal for indian conditions acc to management. So this could be a multibagger,as it is a food stock.
ReplyDeleteI will definitely try to figure out this... and if required, will consult with the management to get their views on it soon... :-)
ReplyDelete