1) Dhanuka Agritech:
The company lived up to their expectations of achieving 750 Cr sales in FY'14, which was expressed earlier by the management, if I remember correctly. They only fell short by some 10 Cr, which is acceptable.
26% growth in sales and 45% growth in net profit, is highly appreciable for the full year, considering the fact that the major jump in revenues comes in Sept Qtr only.
The full year ended with the EPS of close to 19, which makes the P/E ratio stand at 16.
Most of undervaluation in the stock is now erased, as far as I feel.
Now its about the performance in coming quarters, and coming years.
Lots of mutual fund buying happened in this quarter, which also keeps our hopes alive in the script.
The company has paid the dividend for the 2nd time this year, taking the total to 4 Rs per share so far, which is not bad either.
There also has been lots of speculation about El-Nino effect this year. For those, who are skeptical about the event, can always book profits and play safe, as the stock has already appreciated more than 70%, since its recommendation here in Dec '13.
For long term investors, ready to wait for more than a year or so, can continue to hold for stable returns from here on.
2) Plastiblends India:
As usual, the company continues to grow steadily in terms sales, but every time, with better utilization, which has resulted in high net profit this year. For the full year FY'14, the company has showed 14% growth in sales, and 77% growth in net profit, which is exceptional. The 27 Cr of net profit achieved this year, translates to an EPS of 21 for the full year.
Even after the rise seen in stock price in past few days, it is still trading at a P/E multiple of less than 7, based on FY'14 earnings.
The transparency of management is also seen by the fact that they have declared 5 Rs dividend, on account of higher profits this year.
Still looks a good bet for long term.
More details about the company can be found in recent post here:
http://fundamentalstockideas.blogspot.in/2014/04/plastiblends-india-merging-ideas-and.html
3) Manjushree Technopack:
Excellent set of numbers declared by Manjushree Technopack, with top line growing by 20% and bottomline by a staggering 73%. For the full year FY'14, sales grew by 21% and net profit grew by 9%, which is fair, considering the strong customer base that they have. Gradually, with time, as the utilization improves, and Rs appreciates against dollar, we can see a big jump in net profit as well, the way we did see this quarter.
Markets have already given some attention to stock, which can be seen by the fact that stock has appreciated by almost 50%, since it's recommendation here, some 2 months back.
Patient investors can still stay invested as the stock, even after such rally, is trading at a P/E multiple of 12, which is not that high considering the business model of the company, and its future prospects.
The company has added new industry segment like dairy, nutraceuticals and edible oils in their existing portfolio.
Manjushree has committed an investment of Rs 5 crores towards setting up the Plastics Recycling Innovation Centre, slated to be completed by March 2015. The centre will pave the way for new exploration and research in reuse of PET plastic waste. It will house an R&D centre, an auditorium, a museum, a library and a demo centre which will be accessible to public.
Lots of value ahead as far as I feel.
Initial Recommendation Link: http://fundamentalstockideas.blogspot.in/2014/03/manjushree-technopack-packing-fmcg-food.html
4) Suven Life Sciences:
The company seems to have made a habit of showing extravagant growth in sales and net profit. This year has been a revelation for them as they have ended the year with sales growth of 95% and net profit growth of 367%, which is unbelievable. The growth in profit during the year was due to the supply of pre-launch quantities of intermediates for 3 NCE’s under CRAMS.
Suven’s major thrust on innovative R&D in Drug Discovery continues with a spending of Rs 47.9 Cr which is 9.387% of total revenues.
The Board has proposed a Dividend of Re. 0.50 per share, with an additional Special Silver Jubilee year dividend of Rs. 2.00 per share, aggregating to Rs 2.50 per share.
We have seen plenty of their products getting patents in various countries this year, which would further contribute to growth of the company.
With very heavy profits achieved this year, their annual EPS for FY'14, stands at 12.34, which means that, even after 300% increase in past 1 year, the P/E ratio still stands at 7.61.
Seems good but there is a twist.
Out of 510 Cr revenues achieved this year, 170 Cr was on account of pre-launch of 3 NCE. Hence, removing that, we can say that, company has achieved 340 Cr sales this year. The company expects to post sales of 400-450 Cr and net profit of 80-90 Cr next year, which is not comparable with this year, because of those pre-launch.
As per management, the margins may come down to 13-14% next year. They expect to spend 60 Cr on R&D next year, from 48 Cr this year.
Stock is looking good at present, if you are a long term investor, may be, for more than 2 years. It will be interesting to see, how markets reacts to the news of revenues and profits from pre-launch, which could drive the stock in short term.
All the best!!!!!
The company lived up to their expectations of achieving 750 Cr sales in FY'14, which was expressed earlier by the management, if I remember correctly. They only fell short by some 10 Cr, which is acceptable.
26% growth in sales and 45% growth in net profit, is highly appreciable for the full year, considering the fact that the major jump in revenues comes in Sept Qtr only.
The full year ended with the EPS of close to 19, which makes the P/E ratio stand at 16.
Most of undervaluation in the stock is now erased, as far as I feel.
Now its about the performance in coming quarters, and coming years.
Lots of mutual fund buying happened in this quarter, which also keeps our hopes alive in the script.
The company has paid the dividend for the 2nd time this year, taking the total to 4 Rs per share so far, which is not bad either.
There also has been lots of speculation about El-Nino effect this year. For those, who are skeptical about the event, can always book profits and play safe, as the stock has already appreciated more than 70%, since its recommendation here in Dec '13.
For long term investors, ready to wait for more than a year or so, can continue to hold for stable returns from here on.
2) Plastiblends India:
As usual, the company continues to grow steadily in terms sales, but every time, with better utilization, which has resulted in high net profit this year. For the full year FY'14, the company has showed 14% growth in sales, and 77% growth in net profit, which is exceptional. The 27 Cr of net profit achieved this year, translates to an EPS of 21 for the full year.
Even after the rise seen in stock price in past few days, it is still trading at a P/E multiple of less than 7, based on FY'14 earnings.
The transparency of management is also seen by the fact that they have declared 5 Rs dividend, on account of higher profits this year.
Still looks a good bet for long term.
More details about the company can be found in recent post here:
http://fundamentalstockideas.blogspot.in/2014/04/plastiblends-india-merging-ideas-and.html
3) Manjushree Technopack:
Excellent set of numbers declared by Manjushree Technopack, with top line growing by 20% and bottomline by a staggering 73%. For the full year FY'14, sales grew by 21% and net profit grew by 9%, which is fair, considering the strong customer base that they have. Gradually, with time, as the utilization improves, and Rs appreciates against dollar, we can see a big jump in net profit as well, the way we did see this quarter.
Markets have already given some attention to stock, which can be seen by the fact that stock has appreciated by almost 50%, since it's recommendation here, some 2 months back.
Patient investors can still stay invested as the stock, even after such rally, is trading at a P/E multiple of 12, which is not that high considering the business model of the company, and its future prospects.
The company has added new industry segment like dairy, nutraceuticals and edible oils in their existing portfolio.
Manjushree has committed an investment of Rs 5 crores towards setting up the Plastics Recycling Innovation Centre, slated to be completed by March 2015. The centre will pave the way for new exploration and research in reuse of PET plastic waste. It will house an R&D centre, an auditorium, a museum, a library and a demo centre which will be accessible to public.
Lots of value ahead as far as I feel.
Initial Recommendation Link: http://fundamentalstockideas.blogspot.in/2014/03/manjushree-technopack-packing-fmcg-food.html
4) Suven Life Sciences:
The company seems to have made a habit of showing extravagant growth in sales and net profit. This year has been a revelation for them as they have ended the year with sales growth of 95% and net profit growth of 367%, which is unbelievable. The growth in profit during the year was due to the supply of pre-launch quantities of intermediates for 3 NCE’s under CRAMS.
Suven’s major thrust on innovative R&D in Drug Discovery continues with a spending of Rs 47.9 Cr which is 9.387% of total revenues.
The Board has proposed a Dividend of Re. 0.50 per share, with an additional Special Silver Jubilee year dividend of Rs. 2.00 per share, aggregating to Rs 2.50 per share.
We have seen plenty of their products getting patents in various countries this year, which would further contribute to growth of the company.
With very heavy profits achieved this year, their annual EPS for FY'14, stands at 12.34, which means that, even after 300% increase in past 1 year, the P/E ratio still stands at 7.61.
Seems good but there is a twist.
Out of 510 Cr revenues achieved this year, 170 Cr was on account of pre-launch of 3 NCE. Hence, removing that, we can say that, company has achieved 340 Cr sales this year. The company expects to post sales of 400-450 Cr and net profit of 80-90 Cr next year, which is not comparable with this year, because of those pre-launch.
As per management, the margins may come down to 13-14% next year. They expect to spend 60 Cr on R&D next year, from 48 Cr this year.
Stock is looking good at present, if you are a long term investor, may be, for more than 2 years. It will be interesting to see, how markets reacts to the news of revenues and profits from pre-launch, which could drive the stock in short term.
All the best!!!!!
