Saturday, July 12, 2014

Steel Strips Wheels Ltd (SSWL) - Seems To Be Back On Track

SSWL designs and manufactures automotive steel wheels since 1991 and is among the leading supplier to Indian & Global Automobile Manufacturers. The product range comprises Steel wheels for Two and Three Wheelers, Passenger cars, Multi utility vehicles, Tractors, Trucks & OTR Vehicles.

SSWL have set up state-of-the-art facilities and deployed an optimized manufacturing process which ensures that the quality and reliability of the products are maintained for their lifetime.
With Technical Collaboration with Ring Techs Co Ltd. (a 100% subsidiary of Sumitomo Metals Ltd., Japan) , SSWL have achieved world class Technical excellence in Wheel manufacturing.
The State of Art facilities of SSWL caters to widest range of Domestic & Global Automobile customers demands with highest quality standards benchmarks.

Strategic Partners:
1) GS Global Corporation (GSGC), South Korea
2) Sumitomo Metal Industries Ltd (SMI), Japan
3) Tata Steel Ltd through Kalimati Investment Company Ltd (KICL), India  

Manufacturing Facilities:
1) Dappar, Punjab
2) Chennai, Tamil Nadu
3) Jamshedpur, Jharkhand (Under expansion)

Client List According To Segment:

1) Passenger Cars (Car wheel) : 
Maruti Suzuki, VW, Renault-Nissan, Mahindra & Mahindra, Tata Motors, Honda Motors and Hyundai Motors.  

2) Tractors (Tractor wheels) : 
New Holland, Mahindra & Mahindra, Tafe tractors, John Deere, Escorts, Sonalika Group 

3) Commercial Vehicles (Tube and Tubeless wheels) : 
Tata Motors, Daimler, Ashok Leyland, Ashok Leyland-Nissan and Swaraj Mazda. 

4) OTR (OTR Wheels)
JCB , Larsen & Toubro & BEML

5) Exports :
PSA Peugeot Citroen (France & Spain), BMW (UK, Germany & Netherland), VW/Audi (Germany & Argentina), Piaggio (Italy), Siam Kubota (Thailand and Japan), Kromag (Austria), Just (Germany) and SWTI (Slovakia), Renault Nissan Group, SSangyong Motors-Korea, CIR Merker-Italy.

Recent Updates (Past 2 Months):

1) SSWL Bags export order from ALCAR After-Market
http://www.bseindia.com/xml-data/corpfiling/AttachHis/Steel_Strips_Wheels_Ltd_070714.pdf

2) SSWL Bags export order from Russian After-Market 
http://www.bseindia.com/xml-data/corpfiling/AttachHis/Steel_Strips_Wheels_Ltd_230514.pdf

3) SSWL Bags Export Order of 1,50,000 wheels from Peugeot-France
http://www.bseindia.com/xml-data/corpfiling/AttachHis/Steel_Strips_Wheels_Ltd_080514.pdf

My Views:
The company faced 2 tough years off-late, after spectacular FY'11 and FY'12, but things seems to be back on track now, looking at the recent recognition and big orders, the company has received. The major risk company might face, as far as the stock price is concerned would be the very high debt, but that is because of nature of business, where they have to fulfill the orders received from the company. The Debt:Equity is close to 2.
I know many people today are considering high debt as a major factor for not investing in a particular company, but personally, I won't mind investing, if I like the company's prospectus, irrespective of their slightly higher debt, like we did with Granules India. If management is capable, they will repay it,  as the size of organization grows.
Nobody can guarantee this, but its about one's own belief in the company.
Another challenge the company might face could be on account of cancellation of orders, in testing times for the clients.

But still, with strong order book, I am expecting the company to grow at 20% CAGR in sales over next 3-4 years.
Economy, not just in India, but especially Europe, will be a decisive factor for their growth, as it has lots of major clients from Europe. If it does grow well over next few years, we could see a very strong re-rating on the counter.
Past year (FY'14), was absolutely flat for the company, with sales growing only 10% over FY13, and that too, because of superb performance in Q4, where they grew about 34% yoy.
Net profit has been flat to negative, in past 2 years. Current annual EPS is around 16, which makes the stock trading at a P/E ratio of 16, which is not too high, looking at the strong client-tele, the company is having.

Safe investors can avoid the stock, because of some negatives mentioned above, but investors having some risk apetite, may invest in the company, hoping for revival in economy.


Please understand the risk factors and other details, before investing in the company.

87 comments:

  1. sir, what is your view on Lloyd electrical ?
    thanks you.

    ReplyDelete
    Replies
    1. Please don't use notations like sir and all...
      You can call me, with my name only...

      I have already mentioned about Lloyd Elect earlier. The company is having very good data, but historically, it has always traded at a low P/E.
      May be there are few doubts about the management among investors.
      Also, don't judge it completely based on Q4 numbers, as they are traditionally better than other quarter, on account of higher AC sales. All major AC manufacturing companies get their coils from Lloyd.
      If you ask my opinion, I am neutral on it, just based on poor history.

      Delete
  2. Another good set of numbers posted by Cera Sanitaryware, with sales growing 28% yoy, and net profit growing by 22%...
    It seems that company is improving on margins now, after a tough last year, as far as profit was concerned.
    Q1s are mostly low revenue generating quarter for the company, but still they were able to show 28% growth.
    Hence it seems evident that they should not face a problem, in achieving 30% sales growth as promised by management in FY'15.
    Probably they will do more than that.

    ReplyDelete
    Replies
    1. Yes, still looking good for long term.

      Thanks
      Anshul

      Delete
  3. Hi Kunal,

    How about wheels india tvs group company recently they given right issue and with decent dividend,and enkei wheels in the same industry as steel strips,just a suggestion no doubt your stock analysis is good but to give the whole picture you should also include the competitors in the same industry and where the company stands in the overall market to give total clarity as some investors do not study the other companies.

    Regards
    ram hyderabad

    ReplyDelete
    Replies
    1. Thanks Ram, I will keep that in mind next time.

      Regarding Wheels India:
      1) It is trading at thrice the market cap of SSWL.
      2) The sales have been declining in past 3 years. (For SSWL, its flat to positive)
      3) The stock is trading at a P/E ratio of 27 (SSWL is at 16)

      Regarding Enkei Wheels, I am not attracted by data, as yet. It might improve later in coming years.
      Right now, the company is fighting to stay in profits, and growth in sales is also very moderate.
      The client-tele is not that strong when compared with something like SSWL.
      It will take time for the company to make their presence felt.

      Hence, overall, among the 3, I like SSWL the most.

      Of course, it is just my opinion as you asked.... :)

      Delete
  4. Thanks Kunal for sharing another good pick. After going through the some details, agreed to your mentioned -ve points regarding sales n profits, debt ratio, slowdown, risks. However, order pipeline that they have is encouraging which gains Positive point in addition to Promoter grp quality. Must past performance. say a kinda risky bet if we look at past performance. But as I learnt from you and other sr. share price goes by performance in long run based on fundamentals which again makes this comp interesting. I was knowing only Wheels India till now.

    Will keep this under radar. BTW...have you vested interest int his comp?
    -mayur

    ReplyDelete
    Replies
    1. Yes, but I entered the stock around Nov 2011, even before I started writing the blog, but then realized that the company was facing tough times, which prompted me from writing about it in detail here.
      But, now as I see things looking good, I decided to put it up over here...

      Delete
    2. Kunal, your view on chaman lal setia exports??
      Not yet become talk of town.
      Kindly provide little detailed fundamental check.
      -Anand

      Delete
    3. Tough sector, with healthy competition..
      If I want to invest in such a sector, I would rather go with the one who has already built its brand, and has a very strong presence. For eg. LT Foods (Daawat Basmati) or KRBL (India Gate Basmati)...
      Investing in an small and upcoming player in such sectors could be a risk. It can surprise you on either side..

      These are just my views on the sector. As such, I am not tracking it...

      Delete
  5. Ricoh India is rocking at Upper Circuit. In the meantime Sushil Finance has recommended a buy with a target price of Rs.280 !!!!RICOH India Ltd: Target price set at Rs 280

    Ricoh India, a 73.6 per cent owned by Ricoh Group headquartered in Tokyo. Ricoh is growth oriented MNC with very high standards of product and services. Given the strong parent pedigree, Ricoh IndiaBSE 4.63 % provides proxy to players like Canon, JP, Konica Monilta and Xerox.

    Ricoh provides rare combination of branded products and IT services which are complimentary to each other for business expansion. Given envi ..

    Read more at:
    http://economictimes.indiatimes.com/articleshow/38368812.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

    ReplyDelete
    Replies
    1. Excellent news that!!!!
      Even in the heavy fall, the markets witnessed last week, the stock was an outperformer.
      Delivery was also very good, clocking more than 60%, on daily basis, with volumes over 1 lakh..
      That's good to see...

      Delete
    2. It's now forming part of my core-holding !!! Reasons are obvious !!! Management has projected a turnover of 3000 crores by FY16-17 with approx 45% CAGR !!! Obviously it should translate into healthy bottom-line. Central Govt has plans to digitalise all the documents as mentioned in Presidential Speech Ricoh will be a big gainer !!!! I have a holding in an IT Company which also markets multi-functional printers, digital duplicators, office automation products and Document Management Services !!!! Lambi Race Ka Ghoda !!!!!

      Delete
  6. Also guide in case of Marico KAYA!!!
    newly listed stock. Eps of 34/- with exceptional items.
    Without it eps of 17/- (for period jan2013 to march2014)
    I think it has become profitable just last year or so.
    Future plan of strategic outer investment.
    Low debt. Take you time to answer, no problem!!
    -Anand.

    ReplyDelete
    Replies
    1. The company looks really good, but do we have any other listed player in same space, otherwise it would be difficult to judge the valuation.
      Investment, if made here, would be more based on the future of the company, so you should be prepared to accept whatever market has to offer.

      Personally, I would wait for sometime until the stock settles down, after recent listing, and then enter in parts based on their performance in coming quarters.
      Just a suggestion. You can definitely ask a specialist before taking your decision, as I am not deep into this company as yet...

      Delete
  7. Hi Kunal,

    Please share your views on eimco elecon.

    Thanks
    Anshul

    ReplyDelete
    Replies
    1. Good stock, it is already in my radar..
      Trying to do risk analysis, on whether the growth is sustainable or not...

      The company was only 3 Kms away from college... :)

      Delete
    2. oh thats great....this is the third stock of mine you have taken interest in...feels good :D

      Delete
  8. Few Recent Research Reports On Some Of Our Stocks

    Buy Cera Sanitaryware; tgt of Rs 1370: Firstcall Research
    Link: http://www.moneycontrol.com/mccode/news/article/article_pdf.php?autono=1127658&num=0

    Buy Dhanuka Agritech; target of Rs 800: IIFL
    Link: http://www.moneycontrol.com/news/recommendations/buy-dhanuka-agritech-targetrs-800-iifl_1115753.html

    Buy Granules India; target of Rs 773: Emkay
    Link: http://rakesh-jhunjhunwala.in/stock_research/wp-content/uploads/Granules_Emkay_Research_Report.pdf

    Buy Ricoh India; target of Rs 280: Sushil Finance
    Link: http://www.moneycontrol.com/mccode/news/article/article_pdf.php?autono=1127865&num=0

    ReplyDelete
  9. Dear Kunal, following scripts are in my portfolio in 10K nos : ILFS manager @ 15/-, TRF @140/-, Bilcare @ 96/-, Panacea Biotec @130/-, HSIL @120/-, Sanghvi Movers @ 89/-, Gitanjali Gems @ 86/-, Suzlon @ 32/- and Texmaco PIpes @ 15/-. Kindly advice if these stocks in long term will give multibagger gains just like Granules or advice other better ones.

    ReplyDelete
    Replies
    1. Hi Salim,

      Among the stocks that I am tracking, I think Bilcare, HSIL and Texmo Pipes are good fundamentally, and has potential to give multibagger returns.
      Gitanjali Gems can surprise you on either side, based on government's decision and policies on gold import.

      Not tracking others.

      Regards.

      Delete
  10. Any view on Suven life sciences?

    ReplyDelete
    Replies
    1. Suven was recommended on this blog in Jun '13 at 24 Rs here:
      http://fundamentalstockideas.blogspot.in/2013/06/few-more-multibaggers-for-long-term.html

      Stock has appreciated almost 5 times, in past 1 years. One can still hold it for long term.

      Delete
  11. Hi Kunal,

    Good to see an Upper Circuit @ 197.05 on Ricoh India counter !!! Going a classical bull wave !!! However, would not rule out profit-taking on the counter to take it down to 180 levels which will again be an excellent buying opportunity !!!

    totalview

    ReplyDelete
    Replies
    1. After the recent run up, it is advisable that new entrants take position after Q1 numbers, to get more ideas and projections about the company.
      Also, because of the fact that price might react heavily if margins surprises on either side...

      Lets see, how things pan out, but as you said, 175-180 seems to be a good entry with long term view...

      Delete
  12. Hi Kunal,

    Just wondering how many stock do you track at a time !!! And what is the broad methodology you adopt !!! Would be part of my learning process !!!

    totalview

    ReplyDelete
    Replies
    1. Well, that's a tough one... :)

      If you are talking about new stocks and their studies, it is reserved for weekends only. If I like a story, I put that name in my watchlist, and track the stock for some time, based on sector, risk etc..

      Among the stocks in my core portfolio, I keep tracking them daily, as far as news flow surrounding the company is concerned.

      Unfortunately, I don't have much for you there, it's just my passion, that is driving my behavior and methodoly in approaching markets. No fixed pattern that I follow. :)

      Delete
  13. Hi Kunal,

    Gulshan Polyols(ex-dividend) and Ricoh India both trading in the same price range of 195-197 today !!!! Any quick suggestion on these counters ?

    totalview

    ReplyDelete
    Replies
    1. I am expecting Gulshan Polyols to start another 25-50% rally from these levels once we have some positives from their quarterly numbers.

      Ricoh, I feel, might show some consolidation, and stay in this range for some time, until we have a surprising result as far as profits are concerned.
      The market cap is approaching 800 Cr now, which is not bad, for a company with present margins around 1-2% against sales of 1000 Cr...
      As you are aware, most of the stocks are driven more based on profit growth rather than sales growth, because, that is considered to be the parameter, which describes the operation efficiency of the company. (Ofcourse, neglecting some miscellaneous expenses.)

      But as always, being a long term investor in some of these names, I am hardly concerned about short term movements. :)

      Delete
    2. When you says "Long Term' - what figures in years generally you keep in mind - 3+ or 5+ or 10+ may be?
      I understand i varies person to person but still curious to know as those words are used by many ppl but end up selling in 1-2 yrs :-)
      -mayur

      Delete
    3. The phrase "long term" is basically used because I don't know, when the stock I am suggesting will come into limelight and start getting its correct value.
      The time it might take to achieve that, may be as small as 1 month, or as long as 5 years also.

      What I basically mean, is that, don't get carried away by short term movements here and there, and stay invested keeping an eye on every news flow, because, if the stock is really good, markets will appreciate it some day.

      The phrase is not time bound, as far as I am concerned

      Delete
  14. Hi Kunal
    What is your opinion on Excel Ind and JAYANT AGRO ORGANICS

    ReplyDelete
  15. Have a look at Wim plast.

    ReplyDelete
    Replies
    1. Very strong fundamentally, but I think the stock has got its reward in past 2 years...
      Discussed about the stock earlier, when it was cheaper...

      At current levels, I think stock is fairly valued...

      In terms of valuations, I think Nilkamal is trading cheaper, in same sector...

      Delete
  16. my queries on Ricoh India:

    heard de-listing got failure for 2-3 times so far now. Why they are looking for delisting each time and what are the chances of getting delisting in future? even if it happens in future what make investors to remain in this counter, when we had to get out of it upon delisting rather and than wait for re-listing? How we'll be get benefited by delisting?

    Pls share your thoughts as I'm nave investor.

    Thanks again.

    ReplyDelete
    Replies
    1. If you have a look at the original recommendation of Ricoh India, it was more about the company's growth, rather than it being a delisting candidate. Later, in comments, I mentioned that it can be considered as a delisting candidate also, as it was the only listed subsidiary of Ricoh Japan.

      Actually, as totalview has mentioned many times over here, that we don't want the company to delist itself, because, it seems there is lots of potential for us, as a shareholder, to grow, with company going very strong with their growth in Indian market, and they have already suggested a very ambitious target of 3000 Cr annual sales by FY'17 in India from 1000 Cr today.

      Delete
    2. Ricoh India has returned a NPM of around 6 per cent in the past upto FY1011 when they were purely a hardware outfit. In the last three years it's a complete transformation of the Company. Now it's an integrated end to end solution company in Office automation with IT being very important revenue earner for the company. I shall not be surprised if by FY17 their tagline is "We also sell hardware" !!!! Now if they are able to produce even an average 5 per cent NPM by March 2017 it will be a whopping around Rs.40 EPS !!!!!! And remember Ricoh India has not only been dotted on line but surpassed the topline target set by them in the last two 3-year plan periods !!!! Why not on bottomline also ?

      Delete
  17. Plastiblends Ind recommended around 115 Rs, has achieved its expected target of 200 Rs in 4 months or so..
    http://fundamentalstockideas.blogspot.in/2014/04/plastiblends-india-merging-ideas-and.html

    One can continue to hold for better returns in long term..

    ReplyDelete
  18. Your views on MANAKSIA Ltd ?
    Company is going to demerge and unlock value.
    any bright prospects in the near term?

    ReplyDelete
    Replies
    1. Not tracking it on a daily basis.... but is a good company...
      Not sure of its multibagger potential yet....

      Delete
  19. Thanks Kunal however would like to know why HSIL with 40% market share is trading at such low value compared to Cera and will it be in 4 figures only after demerge from loss making glass division or before hand due to capacity expansion.

    ReplyDelete
    Replies
    1. Hi Salim,

      First thing, I always judge the valuations based on market cap of the company, and not based on market price. Looking at that, HSIL is presently trading slightly above Cera with a market cap of close 1750 Cr.

      But, you are correct in a way, that with 1700 Cr of annual sales, it is only trading just above Cera, which has about 600 Cr of annual sales. Now, this is something which markets decide based on various factors, such as growth potential of the companies.

      For eg., even in FY'11, HSIL made a net profit of about 87 Cr, where as, it ended FY'14, with just 56 Cr, even after a significant jump in sales from 1000 Cr in FY'11 to 1700 Cr in FY'14. And in FY'12, I think the net profit was double than what it is today.
      That's speaks volumes about the declining margins of the company.
      I understand the reasons behind it, as you mentioned one of them, but then, markets will have a look at the overall performance of the company, and give valuations based on it.
      On the other hand if you look at Cera, in the same period, the sales have grown by 2.5x than what it was in FY'11, and net profit has almost doubled since then.

      This was just one of the factor, that I could understand. Can't be sure about other reasons, as far as HSIL is concerned, as I am not deeply tracking it.

      In any case, both of them are trading at similar P/E ratios, so don't have much complains with the valuations, as far as I am concerned. Let's see, how coming years, pan out for them, and how valuations change based on future performance.

      Btw, you can see a similar pattern with Nilkamal and Wimplast in their sector.

      Delete
    2. In that case how long should investor like me wait considering expansion, govt plans on sanitization and glass div demerger/split or is it best to shift to other multibagger script....I am already on 122% profit!

      Delete
    3. Hi Kunal have you ever tracked shriram needle?

      Delete
    4. I think the sector has lots of potential in the future. I think one of the stock from the sector can be preferred, whether it be Cera or HSIL.
      Valuation wise, both are equal. So its all about future performance now, and no one knows how they are going to be perform. So, go ahead with your belief, I would say...

      Need time to study Shriram Needle.
      I think Firstcall Research came up with a research report on it recently..

      Delete
  20. CORVI getting aggressive on Facebook !!! Look at the latest picture at Ace Tech Mumbai !!! Simply awesome !!!

    ReplyDelete
    Replies
    1. Had a look in the evening...
      Seems like we are going to have another year, of high expenses, and negative margins... :)

      Delete
    2. Seems promoters now want to mop up shares from the market if available in quantity below 30 :-D But now quantity may not be available as Nitin Arora has sold out and the rest are proxies !!! Waiting for quarterly results !!! Concern involved is promoters' intention to pay to retail shareholders !!! Would like to attend AGM if date suits me !! Rather would request you also to join the event !!!

      totalview

      Delete
    3. Hi Kunal,

      Some bulk activity on Photoquip counter today !!! 13K shares traded today in three or four lots @ 29 !!! More important there were buyers for more than 20K shares at the same price !!!! Let us see who has bought it and how it pans out !!!!

      totalview

      Delete
    4. They have updated the pics from their showcase in middle east...
      Just thinking of the marketing expense they are going to bear this year also... :D

      Delete
    5. BAHUT Lambi Race Ka Ghoda :-$

      Delete
    6. Another the day of trading with good volumes !!! More than 6K shares were traded at above Rs.30 with buying orders outstanding through out the day !!! It seems someone/promoters' buying is underway !!!!
      It's coinciding with the visibility of CORVI through FB and shows !!!!! Will it be the return of "achche din" ? :-$


      totalview

      Delete
  21. Your view on cyient? As you are from same industry;)

    ReplyDelete
    Replies
    1. Sorry for the delayed response, I was out of station.

      I might be from the same industry, but as such, I have not preferred IT stocks.
      So far, I have invested in only 2 IT stocks, one was Infinite Computers, which was mentioned in the this blog, and details can be found through link on right hand sidebar, and other was RS Software in 2011. Both the stocks were preferred just on basis of sheer undervaluation.
      As such, not a fan of IT stocks.

      Delete
  22. Hi Kunal,

    Finally, Ricoh India has crossed the Discovered Price of delisting process of i.e.Rs.200 !!!! It's amazing and unimaginable that where promoters have rejected the exit price of Rs.225 and share in the market has crossed the DP of Rs.200 within a month !!! And the way it's moving it's likely to cross even 225 on the eve of ensuing quarterly results !!!! Results are expected to be far better Y-o-Y !!!! Next quarter i.e. September 2014 is likely to be substantially better. I am expecting this counter to travel on the lines of Hitachi Home :-D

    totalview

    ReplyDelete
    Replies
    1. Hi Kunal,

      Incidentally, Ramesh Damani also recommends Ricoh India. Please see link below :

      http://profit.ndtv.com/news/interviews/article-india-in-phase-two-of-bull-market-ramesh-damani-591466

      totalview

      Delete
    2. Excellent news that... the stock might continue to outperform, with few consolidations...
      Apart, from institutional selling, the retail market is also going very strong, which will add to the numbers in coming quarters and that should indirectly help the company improve margins substantially...

      Looking forward to quarterly numbers..

      Delete
    3. Hi Kunal,

      Felt like posting it here too :-$

      "Excellent day for bulls to keep on nibbling the counter !!!! Very fast stock is getting pocketted by those who have a long range for the counter !!!! Still an affordable counter for those who want to invest in counters of blue-chip in the making !!!! Will be much dearer in the months to come !!!"

      totalview

      Delete
    4. Again felt like posting it here too !!! Ricoh was again locked at Upper Circuit @ 210.70 since 12.50 PM !!!

      Last of the lots of those weak-hands who had entered Ricoh India are almost out of the counter under one pretext or the other !!!! Unprecedented churn out of the shareholding pattern of the Company has taken place which is very rarely observed !!!! A counter which had become an arbitrategeurs` darling has very fast become a scrip of those who believe in value buying !!! However, investors` interest and fancy will catch up with the declaration of, to some extent, first quarter results and to a substantial extent after the declaration of second quarter results !!!! All and sundry will start chasing Ricoh India !!!! But right now it`s a counter of accumulation and that too by knowledgeable circles !!!!!

      totalview

      Delete
    5. Look at the NPM at present, what it was in the past uptil 2011 when it was a pure hardware company, what it can be keeping in view the economy of scale and keeping in mind that it is a software company now on 50 : 50 basis by FY14-15 !!!!! Markets have their own way of valuing the stocks and sometime we falter and sometime it`s beyond our imagination :-$

      totalview

      Delete
    6. http://www.indianprinterpublisher.com/news/Turnaround_time_plays_4390.html

      Delete
  23. Hi Kunal I am holding financial technologies shares @ 303/-.......m.cap 1300 crore with book value 580/- and lifetime high of 3400/-. Kindly advice long term views....perhaps a moat and takeover candidate.

    ReplyDelete
    Replies
    1. Not tracking FTIL, and to be frank, earlier also, I mentioned that I tend to stay away from stocks which have been in controversies, time and again...
      As far as the stock price is concerned, it might reward, but still, I prefer to stay away on basis of my personal bias...

      Sorry, can't help you with any analysis there.

      Delete
  24. Forgot to mention that I am holding FT shares = 5000 shares and plan to add equivalent shares. Kindly advice.

    ReplyDelete
  25. Hi kunal,
    Suppose a company(FV10) has issued 50000 of non convertible preference share at 10% dividends annually fv10 and till 2020. So at the time of paying back them (suppose without premium), will company have to pay 5lakh or 50000(fv10)*CMP?
    Thanks and regards

    ReplyDelete
    Replies
    1. I think I did share the link earlier, where all the scenario's are covered...
      Please go through it....
      http://wikieducator.org/Unit_1:_Redemption_of_Preference_Shares

      Btw, I am not much into the details of preference shares and its internal details...

      Delete
  26. Thx but as a company is FT an interesting one?

    ReplyDelete
    Replies
    1. As I am not tracking it, I wont be able to comment on that...

      Delete
  27. what was the entry price of steel strip wheels which you have recommended.please edit it with entry price so that it will be a record for all of us.you have added the entry price of your old recommendation in left side,but unable to see for steel strip.

    ReplyDelete
  28. Hi Kunal, whats your take on resulst of Ganules & DHFL. I must say descent improvements in Granules and expecting even better in H2FY15 so I would continue to hold it. Dont know what to say about DHFL so waiting for your analysis.

    ReplyDelete
  29. Granules India, as expected, came out with another brilliant set of numbers. I am not sure if it did live up to the expectations of many, looking at the rise in price, the stock got, in past quarter. But definitely the stock still seems to be trading cheaper, when compared with its peers.

    In my opinion, the company did very well to show at healthy 36% growth in sales, especially, when we are already, one year after the sharp rise in sales, due to expansion, and a decent increase in utilization of that expansion on quarterly basis. One of the silent contributor was Auctus Pharma, which showed a total sales of 26 Cr.
    The best thing in the result was the 69% jump in EBIDTA margins, which highly proves the increasing efficiency of the company, and assures us, that, someday, the net margins will go above 10%.
    That could significantly re-rate the stock price, apart from debt concerns.
    One can continue to hold it for long term. Not sure on how results will be taken on short term basis, but it has definitely lived upto my expectations, and assures me, that annual EPS is surely going to be around 50 or more in FY'15.

    Regarding Dewan Housing, I would say, the results are pretty decent, but stock has certainly got its reward our past 1 year. The company now stands at a market cap of almost 5000 Cr, which is, by no means, less. One can hold it in core portfolio for steady returns. Not sure of its multi-bagger potential from these levels.
    But for sure, the loan sanctions and disbursements growth numbers still looks promising.


    ReplyDelete
  30. Kunal, I find some good prospects companies.
    Your valuable views will be helpful.
    -Kopran (too much pharma but have a look)
    -Astec life
    -Shilpi cables
    -fortune financial services india

    Thanks, Anand

    ReplyDelete
    Replies
    1. Hi Anand,

      Among the stocks you have mentioned, I like Kopran (would be best if they start paying dividends) and Shilpi Cables.
      Not much idea about others.

      Regards.

      Delete
  31. Hi Kunal referring to above comments and mine queries earlier what good do you find about Kopran (is it going to be multibagger?) v/s Panacea Biotec.

    ReplyDelete
    Replies
    1. Hi Salim,

      I answered the individual query on Panacea earlier, when you asked here:
      http://fundamentalstockideas.blogspot.in/2014/06/tcpl-packaging-probable-candidate-to.html

      I mentioned that I am not following it strictly, so comparison, with someone that I have an eye on, is very difficult. It doesn't mean that, Kopran is good and panacea is bad. It is just that I have seen a bit of Kopran, and not that much of Panacea...
      Please remember that my ideas are subjective to my knowledge.
      Don't misunderstand my postings here.

      The most important point is that, when I like the stock 100%, I would definitely put up a separate post for it. If there are others, where I say I like them, means, I can see some positives in those stocks, and if one has a belief, one can remain invested in it.

      Regards.

      Delete
  32. Thx. Dear Kunal have you gone through tyche industries with ROCE 20 and RONW 15 and EPS 6

    ReplyDelete
    Replies
    1. Trying to understand the reason for unevenness in the results. While FY'14 was excellent till Dec numbers, why so much decline in Mar quarter numbers compared to previous years..
      But the data in balance sheet seems good.
      Need more time to study the company...

      Delete
  33. Kopran will give dividends once it clear consolidated losses accumulated on its balance sheet. About 70cr losses. Another vompany from parijat group, oricon has given uninterrupted dividends. Well , I like to add that I am not in market for dividends.... But ya they show promoters quality in a way.
    Its a different model from my beloved granules. I think it will take 2-3 yrs to clear losses.
    Very good info about kopran... HDFC link...

    http://www.indianotes.com/uploads/article_pdf/2014/hdfc_Kopran_30Apr14.pdf

    ReplyDelete
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