Saturday, August 30, 2014

Flex Foods - Can Success Be Achieved, The Natural Way?


Flex Foods Limited, part of Uflex Group of companies, started its operations in 1992 as an Export Oriented Unit, located in Dehradun-Uttarakhand (foothills of Himalaya) engaged in Freeze Drying, Air Drying, Individually Quick Frozen(IQF) and Canning of white button mushrooms, fruits & vegetables, culinary herbs and green pepper corns catering to European, US, Canadian, Australian and Domestic market.. The company has its own captive state of art mushroom growing facility with fully equipped mushroom spawn and compost preparation facilities.
The company started its commercial operations in 1992 by establishing an 100% EOU for vacuum freeze dried vegetables mainly mushroom and culinary herbs with a total processing capacity of 2000 MTs per annum.

List of countries where company export:
-USA
-North America
-Canada
-Europe (U K, Germany, Denmark, France, Belgium)
-Australia
-South Africa
-Middle East countries

Flex Foods offers a wide range of Vacuum Freeze Dried, Air-Dried, Frozen and IQF (Individually Quick Frozen) product range of mushrooms, herbs, spices and fruits/vegetables, meeting strict quality & hygiene standards. Canned button mushroom in various shapes and sizes is also available as per the customer requirement. Flex Foods Limited is a single point source of supplier of Frozen / IQF (Individually Quick Frozen), Air Dried, Canned as well as Freeze Dried products to the customers as per their requirements. A tempting food i.e. retail packs of Culinary Herbs for Indian customers are also available in four varieties in Flex Foods.
New Products:
Air Dried & IOF – Stevia
Air Dried – Sugar Beat
Freeze Dried – Jalepeno Pepper – Red
Freeze Dried – Jalepeno Pepper – Green
Freeze Dried – Banana
Freeze Dried – Green Capsicum10
Further, stevia & sugar beat has been cultivated and samples in Air Dried & IOF form have been sent to overseas buyers for their approvals. Customers have asked for improvement in the texture of the product, which will be developed soon. 

Major Risk:
Increase in the prices of raw materials, packing material and fuel
• Food inflation in general
Non-availability of raw materials
• Exchange rate fluctuations
• Changes in fiscal benefits/laws
• Competitive environment with diverse players.
To address these risks, the Company has a single point source supplier of Frozen/IQF, Air Dried as well as Freeze Dried products to the customers as per their requirements with high quality mushrooms and herbs. Though the competition is fierce, the goodwill and the quality of the products offered by the Company are great plus factors and the Company expects to overcome the competition. The Company had expanded its freeze drying capacity by adding print of art freeze dried cabinets.

My Views:
The company remained under my watchlist for long time, since I was busy understanding the scalability of business. But the product portfolio of the company looks good, plus their R&D, which has been continuously coming up with new products, will form its heavy usage, with increasing awareness among people regarding such health oriented products.
Investing in such a company, especially in food sector, is about your belief in the products that company has in its portfolio. If one asks me, I would say, the sale of some of the new products like Stevia, and some culinary herbs, is bound to increase with time. Major advantage I feel, in these products is that, the regular users of these products don't suddenly quit using it. Plus, awareness among people could bring about the increase in sale of these products further. 
The company has been paying very good dividend since long time, which increases my confidence in management, especially, when there has been concerns raised over its management.
The company is growing at a CAGR of 12% in terms of sales, and 22% in terms of net profit in last 5 years. For next few years, it might continue to similar, or slightly better growth, but with time, they will start posting very good numbers, after penetration of their new products in Indian markets.
For Q1 this year, the company posted sales growth of 19%, and net profit growth of approx 100%, which lays down the path for good growth, this year.
Even considering FY'14 earnings, the company is trading at a modest P/E of 7. This year, I am expecting the company to post EPS around 12, which will make the stock look dirty cheap at current market price.


117 comments:

  1. I feel Heritage Food is better option to this in whole FMCG sector...if you their recent presentation they have added many dairy products and increased expansion of retail business...well established player and future looks promising specially considering supply n demand inconsistency in dairy products...
    Again these are my personal views.
    Thanks for bringing another gem.
    -Mayur

    ReplyDelete
  2. Appreciate your view..
    I like Heritage Foods also, and did mention about that earlier...
    However, I see a bigger opportunity in Flex Foods, as it is very small organization when compared to Heritage Foods at present. Plus it has some of the futuristic health oriented products, which I feel, will take over some of the traditional food products..

    Go with your belief, both seems to be good at present..

    ReplyDelete
  3. Dear Kunal,
    I don't think the group is trustworthy enough to warrant an investment.
    Regards.

    ReplyDelete
    Replies
    1. I agree Sameer, many people have shown their concerns over Uflex management...
      Please avoid such stocks, where you have even slightest of doubts..

      Delete
  4. Dear kunal what is the topline and bottomline expectations of gulshan polyols Ltd after the 5 big announcement.

    ReplyDelete
    Replies
    1. This year, I am expecting growth to be around 15%, as most of the benefits will be accessible in second half of this fiscal.... From next year onwards, we can expect 25% growth in sales..
      Difficult to predict net profit growth as it is driven by lots of factors..

      Delete
  5. Best thing which I like about Flex Food is ascendancy curve in their operational parameters !!! And after a long time they have hiked the dividend which oozes confidence. Around Rs.15 crores capex programme was completed during 2013-14 which should generate incremental topline. One very striking feature of the Company - It has got gross fixed assets in excess of Rs.95 crores(net around Rs.52 crores) and sales are just around Rs.65 which shows that assets are very much under-utilised and there is ample scope for top-line to go up !!!!

    ReplyDelete
  6. And don't forget about consistent improvement in their NPMs !!!! Even if they are able to maintain NPM around 20% it will be great !!! Even with a likely topline of Rs.80 crores it should give a PAT of Rs.16 crores resulting in EPS of Rs.13 !!! And this is the silver jubilee year of the Company :) !!!

    totalview

    ReplyDelete
    Replies
    1. Yes, NPM is something which I forgot to mention. This sort of margins is not normal for such small size organizations...
      Even likes of Heritage Foods are operating at 1-3% NPM...

      Delete
    2. Bang here you are ! I checked up Heritage Foods also and it started looking very ordinary !!! High volume low margin Company but you can not ignore market perception !!!

      totalview

      Delete
    3. I shall be attending AGMs of Ricoh India and Gulshan Polyols !!! Framed questions can be put here in order to obtain Management's view on them !!!

      Delete
  7. Hi Kunal, I would like to give you few hints. Please if you could crack this puzzle...Am a big fan of yours...I hope you wont deny..Please let me know this stock....

    This company operating in an Industry with decent growth potential.

    # One promoter of this company is a well experienced veteran in this industry

    # Co promoter of this company is another listed company which is one of the market leaders in an Industry .

    # Promoters are holding more than 50 % stake in this company.

    # Company’s current market cap is less than 25 % of its last year Sales.

    # Face value of Stock is Rs.10.

    # It is listed only in BSE.

    # Company is more than 40 years old and listed in BSE for more than 10 years .

    # In latest June quarter , Company reported growth in top- line and bottom line both on yearly and sequential basis.

    # In latest June quarter , company reported sharp improvement in its OPM and NPM.

    # MD of the company changed during last FY ( 2013-14).

    # At the end of FY 2013 , company's debt is less than Rs.5 Cr.

    ReplyDelete
    Replies
    1. Hi,
      Come out with your cracker !!!!

      Delete
    2. Hi,

      It is AIMCO PESTICIDES.

      Delete
  8. My expectation on Ricoh India was when the PM will be in Japan it's market price will be zooming !!! And I find that it closed last trading day on upper circuit at 270+ !!!! Somehow it's clicking to me as to why it's valuations can not be on the pattern of Just Dial ? I see another Just Dial in the next two years. Now I categorize this counter in niche segment keeping in view Document Management Services business where I wonder whether any Company is listed. However, on technical charts a sharp correction is overdue whether it will happen or not.....

    totalview

    ReplyDelete
    Replies
    1. Finally a Lower Circuit at Ricoh India counter at 257 with 15K shares pending orders :) !!!

      totalview

      Delete
  9. Today Dynemic Products is locked at Upper Circuit (10%) at 52.95 with pending buying orders for more than 3.5 lakh shares !!! Expect some positive developments on the counter !!!

    totalview

    ReplyDelete
    Replies
    1. Pending order is huge... may be there is some informed buying...
      Also, positive development in Ganesha Ecosphere..
      http://www.bseindia.com/xml-data/corpfiling/AttachLive/Ganesha_Ecosphere_Ltd_010914.pdf

      Delete
  10. Kunal, what is your opinion on Indian Toners & Developers. Seems like a good business in a decent growth industry at very cheap valuations. At P/E of 4 and clocking growth rates of 10 - 20% YoY.

    ReplyDelete
    Replies
    1. Not a bad option as far as numbers is concerned...
      Will have to take a deeper look into the business to get more details...

      Delete
  11. Yeah, me too looking into the business model. It is a very competitive replacement market (unless in OEM market) but first up numbers looked good. Globally, printer market will grow slowly as digital sets in, but the pie is so large that a good player can carve a good business.

    ReplyDelete
  12. Dear Kunal,

    Please give ur valuable view on Kalpena Industries, Jai Balaji Industries Ltd., Galaxy Entertainment.
    Regards

    JD

    ReplyDelete
    Replies
    1. Positive on Kalpena Ind for long term..
      Not tracking other 2...

      Delete
  13. Gulshan Polyols was on the lower circuit today around 214.20 and it gave opportunity to acquire decent quantity accepting that it may witness some more correction. But when you like a stock you don't chase the bottom ! :)

    totalview

    ReplyDelete
    Replies
    1. Yes, not a bad chance to enter...
      Actually, some of my friends bought in the range 220-230, after series of upper circuits, those who missed it earlier.....
      However, they are healthy long term investors, so they won't mind.. :)

      Delete
    2. Again on Upper Circuit today at 225.15 !!!! Lambi Race ka Ghoda !!! It gives jolts so that weaker-riders will be thrown away :) !!

      totalview

      Delete
  14. Kunal,your view on Kanoria chemical Please. The net profit is good, sales more than market cap. Can i enter at current price

    ReplyDelete
    Replies
    1. Kanoria Chemicals has been discussed over here earlier.... Please use search functionality to get more insights...
      Yes, it is a good choice for investment....

      Delete
    2. Thanks so much Kunal. Sorry should have used the tool before. However thanks for your patience to answer the same again.

      Gita

      Delete
  15. Hey Kunal, Granules almost touching 800...what do you suggest? I had already booked partial profits around 400 and repented later :) since then m holding tightly and my avg purchase price now came down to 115...m waiting for my target of 1000 sooner or later but still needs your views (words of wisdom)..I can hold another year or two.
    Cheers!

    ReplyDelete
    Replies
    1. If you ask me, I would say there is no need to repent also, if you have sold few shares at more than 100% profit..
      However, if you are thinking of keeping it for 2 years or so, then continue to hold, as there is still lot of potential...
      If company is able to address lower margins and debt issues well, there could sever re-rating from these levels also... don't forget, the company is still trading at a makret cap of around 1500-1600 Cr, which is very less when compared to its peers..
      Lets see how results pan out this year, and how they are able to improve margins, especially with Auctus, which is currently loss making unit.

      Its a hold / buy on dips counter right now in my opinion...

      Delete
  16. Flex should offer opportunity for acquiring it in the range of 61-63 in a market marked by profit-taking which is due and should be available in September itself !!!!

    totalview

    ReplyDelete
    Replies
    1. Market refuses to correct and so is Flex Foods :( !!

      totalview

      Delete
  17. Dynemic Products has shown it's dynamism and ex-dividend it was again locked at Upper Circuit @ Rs.58.20 !!!! Any idea why all of a sudden huge buyers have turned up on the counter?

    totalview

    ReplyDelete
    Replies
    1. Good to see heavy volumes getting traded above 60...

      Delete
  18. And Ricoh, as expected, has come in for a correction after a sharp rise !!! But the counter is capable of giving very sharp upswings as most of the floating stock is in deep pockets now who are unwilling to put them on trading-table !!!! Wait for much much higher price range in the next six to nine months !!!

    totalview

    ReplyDelete
  19. Dear kunal,

    kindly give ur view on Jai Balaji Ind. What will be the effect of SC verdict on this company?

    Regards
    JD

    ReplyDelete
    Replies
    1. Hi JD,

      Unfortunately, I am not tracking Jai Balaji Ind at all, including news flow surrounding the company.
      So, it won't be proper for me, to comment anything on it..

      Regards.

      Delete
  20. Dear Kunal, kindly give your views on KESAR TERMINALS AND INFRASTRUCTURE

    ReplyDelete
  21. Dear Kunal, kindly let me know your view about Control Print, the fundamental looks very strong.

    ReplyDelete
    Replies
    1. Expressed my opinion on it earlier... Highly positive on it....

      Delete
  22. Dear kunal , do you expect a 50 cr sales alone from liquor business of gulshan polyols from second half of this fiscal

    ReplyDelete
    Replies
    1. Difficult to predict upcoming numbers from a new business for a company...
      But have been positive on the company since long, and still positive on it...

      Delete
    2. Don't expect too much from liquor business this year.My estimation is maximum of 15-20 crores this year. This will be a slow moving venture until grain distillery comes into operation which should be a minimum of 18 months away. However, other ventures should do well and generate increased volumes.

      totalview

      Delete
  23. hi kunal i want to know abt manjushree tech i had bought today...... could you tell that can i add more if it goes down further....i m not expert of balanceshet and result so pls give your valuable opinion on this stock.. thanks in advance

    ReplyDelete
    Replies
    1. Yes, it is fundamentally strong company..
      Buy in parts and use dips to add, if you are thinking long term..
      Still has lots of potential..

      Delete
  24. Hi kunal, good to see your blog is gaining popularity and very fresh ideas coming regularly!!
    Your views on astec life, if you have eye on it.
    -Anand Patel

    ReplyDelete
    Replies
    1. Thanks Anand...
      Decent stock. Had an eye on it, but didn't impress me to the highest level..
      I was a bit dissapointed with its Q4 FY'14 numbers.
      However, recent Jun qtr numbers seems good. I personally would wait for few more quarters before making judgement, as I have seen variation in its numbers. But balance is decent enough to take a risk of investment.
      That's my personal opinion.

      Regards.

      Delete
  25. Hi Kunal,

    It seems to me that Dynemic products is under similar kind of accumulation that Camlin Fine was before it jumped multifold.

    Do you think I can buy Dynemic at current levels? Currently I have no holding in it. Please advise.

    Regards.

    ReplyDelete
    Replies
    1. Potential is there, can be a very good long term player...
      I am also not sure, if this is right time to buy or we should wait for lower levels, but I like the company. The decision has to be yours... :)

      Delete
  26. hi kunal why manjushree is falling like this...any bad news or only technical correction..plz reply

    ReplyDelete
    Replies
    1. I don't see any negative news, it might just be consolidation, not sure on that. But you have to understand that stock has given 200% appreciation within 6 months, so these things are bound to happen...
      Also, I don't think it is falling with heavy volumes, like when it was going up, so I wouldn't mind that much....
      If you have some patience, then hold. No other comments as of now.

      Regards.

      Delete
  27. thanks very very much..god bless u..

    ReplyDelete
  28. Hi Kunal,

    Flex Foods might be very good from valuation and growth perspective. However, I would advice you tread cautiously here as the promoters have got very bad reputation. Accordingly to me, no matter how good the company and its prospects look good, if the people managing it are crooks, I would advice to stay far far away from such a company. Go through the below links for more information
    1)http://t.in.com/eIAc

    2)http://t.in.com/0Irg

    3) http://t.in.com/8IzZ

    Thanks,
    Vikas

    ReplyDelete
    Replies
    1. Hi Vikas,

      I have mentioned skepticism about the promoters of UFlex in the original post, and people who are doubtful in such investments can definitely avoid it..
      I am here putting my views on various companies, where I feel business prospectus are good. I have also mentioned why I prefer companies in spite of some negatives.

      However, as I have mentioned every time the final decision has to be taken by individuals, on the basis of what they feel is best suited to their risk profile.

      Thanks for raising this point. It might help few..

      Regards.

      Delete
    2. Thanks for clarifying. Having posted my comment even though it was detrimental to your thesis shows your transparency. Appreciate it and I do like most of your stock picks.

      Keep up the good work.

      Regards,
      Vikas

      Delete
    3. Promoters are better than lot of others and have run away with the public money , The company has been regularly paying dividend. Re rating has now become very relevant.

      Delete
  29. Hi Kunal I am regular follower of your blog. You are really doing great job. Hats off to you!! I have query on Paushak which is doubled in last 7 days only.. I am holding few shares of it. Is there any news you know.. Your expert comment please.. Thanks in advance..

    ReplyDelete
    Replies
    1. I don't see any news flow surrounding the company.
      The stock was attractive when I first posted about it here:
      http://fundamentalstockideas.blogspot.in/2013/11/few-interesting-micro-caps-that-may.html

      At current market price, I don't see any undervaluation. May be there is some informed buying going on, in the counter, on basis of some positive news coming in future.
      Not much idea, as I am not strict follower of this stock.

      Regards.

      Delete
  30. Gulshan Polyols has been consolidating very nicely in the range of 215-225 for the past few days !!! Earlier it completed a technical correction also from 220 to 165 !!! Subject to overall market being good, it's likely to break out shortly and it made efforts in that direction today !!!! Probably market is also waiting for circuit limits to change to enable it to take big leap :) !!!

    ReplyDelete
    Replies
    1. And as expected initiation of break-out gained momentum but it was capped because of limitation of Upper Circuit !!! I seriously consider that this scrip will gain further momentum but because of limitation of Circuit Limits !!!! All in all still a safe investment keeping in view it's trailing earnings and robust future prospects. I am still on accumulation drive :-D

      totalview

      Delete
  31. Hi want to invest in suven life science as the ROCE is 64 and RONW 54….for year 2014…by this how to calculate the price target as it’s current price is 208/-…

    ReplyDelete
    Replies
    1. Difficult to judge the target price based on 2-3 parameters.... I don't go by that way..
      Further achievements in products patents and impressive management interview regarding the same, has aided the current jump in price for Suven....

      If I am not wrong, I think you asked the same question, when it was trading around 110. I think I can only give you similar answer which I had given that time.....
      After such levels of appreciation, it is difficult to predict how it will be taken by markets..
      That's the reason, why I have shared recommended price of all stocks suggested or discussed here..
      Entry price is any stock is important. :)

      Regards.

      Delete
  32. Hai kunal, what are the new upcoming products and projects from gulshan polyols in next two years. They included cement in product list in website. Did they have cement plant or planning.

    ReplyDelete
  33. Sir your View oon Singer India. Can it be bought at CMP?

    ReplyDelete
  34. Replies
    1. Everything seems fine except the debt levels...
      Debt seems to be higher for a company in this sector..
      Will have to find out the reason, before concluding..

      Delete
  35. Whats your view on Control Print? The company's new manufacturing facility at Guwahati for expansion is about to commence from 1st October 2014.

    ReplyDelete
    Replies
    1. Expressed many times, and expressing it again, highly positive on Control Print... :)

      Delete
  36. Flex Food is rocking but I could not buy my quantity :(

    totalview

    ReplyDelete
    Replies
    1. Once again, sudden upmove coming faster than expectations...

      Delete
  37. And again Dynemic Products' dynamism coming to the fore !!! Counter is locked at Upper Circuit @ 64.80 !!!!

    ReplyDelete
    Replies
    1. Some one is accumulating heavily....
      Surprised to see the move coming without any news..

      Delete
  38. And those who have bought Marico Kaya would have transformed their skin through Kaya and glowing :-D !!!! Scrip is locked around 722 !!!! In a short period of just two months it has gone up by more than 225% !!!! What a terrific transformation !!!

    totalview

    ReplyDelete
  39. And I consider Singer India counter to be a blue chip of tomorrow if on Y-o-Y and sequential basis it's topline and bottomline improves in the next two quarters !!!! It's a household name and quite possible investor community may become MAD oh no Me Also Dekko counter :-D

    totalview

    ReplyDelete
  40. Hello kunal, need your opinion on a company from your own field which you don't like for the investment purpose..!!!
    Kellton tech... Preference warrant at 15/-... Good clients as per site)... Healthy growth... Want to know ethicality of management if you can provide some time and study company.
    -Anand

    ReplyDelete
    Replies
    1. Definitely worth a look.... will get back to you after more detailed analysis on it...
      Thanks for the name... :)

      Delete
    2. yes, Kellton tech looks interesting bet...superb growth after acquiring 3 other companies that added good sales on consolidated basis...added in the watch list for further study...but we seek Kunal's opinion who have got a third eye which can screen the company beyond our limitations/scope :)

      Delete
    3. Few que on this....
      -How did they arranged money for acquisition as debt is not there right now?
      -EPS is calculated wrongly, it should be 0.61 for last quarter i think.... Not checked again.
      - segmental break up of revenue from different sector.

      Well... First impression was good.
      Another gem is Marico kaya (bought few at 275/-), if it will come below 600/-, I am planning to sell half of my beloved granules to buy it.... Too good company. If vlcc can make profit of 40cr on sales of 500-600 cr,demanding valuation of 40 cr$=2400 cr in ipo, kaya can also do wonders with margin expansion in coming year. Kaya's fy15 revenue will be flat to negative ( below 362 cr) as DIAL is sold which had 72 cr revenue with 16 cr profit.... But last quarter results are suggesting massive turnaround of india and uae business.... Keep kaya on radar, great future ahead qith 175cr (135/- per share) cash and zero debt.

      Delete
  41. And after a long time Cravatex is locked at Upper Circuit @ 522.65 with decent volumes of more than 7K shares !!!! Any development on this counter ?

    totalview

    ReplyDelete
    Replies
    1. No news.. seems investors have now started finding out hidden gems, when most of the stocks have gone expensive... :)

      Delete
  42. Hi Kunal....kindly advice on dynamic industries with eps 17 an book value 0.7

    ReplyDelete
  43. To add....Dynamic industries is available at 77/-

    ReplyDelete
    Replies
    1. It may attractive valuation wise, but didn't find anything attractive in their product range...
      Will have to dig in more to find out..

      Delete
  44. Replies
    1. I think its not getting traded. It might be suspended for some reasons...
      Not tracking it...

      Delete
  45. what is your view on Munjal Auto and R System Intl?

    ReplyDelete
    Replies
    1. You seem to be new to thi blog...
      Munjal Auto was recommended at 55 Rs here:
      http://fundamentalstockideas.blogspot.in/2014/05/munjal-auto-industries-accelarating.html

      At current price, its a hold.

      Please check left hand side widget for all recommendation so far with their reco price..

      Delete
  46. sir what is your take on punj loyed can it deliver?

    ReplyDelete
    Replies
    1. Not tracking it, but don't find anything so attractive in the data either...

      Delete
  47. Price range and trading volumes for the past six-seven trading sessions are indicating that fresh value based buying has taken place at Gulshan Polyols counter !!!! It's being accumulated with strict discipline !!!! Sharp upward movements shall be seen in a positive market !!! Suggested tight hold even if it reacts adversely in a weak market !

    totalview

    ReplyDelete
  48. Off late, Ricoh India counter has been weak and it has correct from 270+ levels to 250+ range. However, rise has been on higher volumes whereas fall has been on much much lighter volumes say around 30% of the normal volumes !!! Till now, this suggests sideways movements !!!

    totalview

    ReplyDelete
    Replies
    1. See travelling faster now and should cross 300+ in September itself subject to broader markets being good !!

      totalview

      Delete
  49. Hi Kunal...how are you doing....any new picks expected sooner. Also let me know about rubfil international since rubber prices are coming down....

    ReplyDelete
    Replies
    1. Hi Salim,

      I am good. Thank you.. :)
      Not tracking Rubfila Intl. Will come up with a new post very soon.

      Regards.

      Delete
  50. good morning kunal
    wht is ur view on lawreshwer poly...

    ReplyDelete
  51. PNB Gilts a very safe bet with six-month's perspective i.e. upto March 2015 !!! Although I donot believe in targets but it should give 100% annualised profits !!! Best thing about the scrip is that it's price is very tested and Book Value as on 30th September 2014 will be around Rs.40 !!!! And the icing on the cake is dividend yield is around 5% !!! But no fire-works except in case PNB decides to sell out/induct strategic partner/merge with itself in which case it will be a super bonus.

    Disc : Holding good quantity

    totalview

    ReplyDelete
    Replies
    1. Will take a look... Thanks... :)

      Delete
    2. Let me add that all talks have been in the air for quite some time in the last three/four years regarding complete sell out/induction of strategic partner and merger with PNB but could not be concluded for one reason or the other. But if at all anything materialises there will be complete re-rating of the counter and a minimum value of around Rs.40 is assured reason being PNB Gilts is a pure gilt company which invests in govt papers, FDs, call money market, corporate bonds, etc. and book value is almost 99.9% realisable within a span of just ONE HOUR !!! However, a big word of caution time is the essence !!! Incidentally, PNB Gilts is the only listed entity on Indian bourses :) !!!! My frank opinion this counter needs terrific patience but almost without erosion of investment. Since interest rates are likely to fall, I see a minimum of 1.5% fall in repo rates by December 2015, PNB Gilts is going to be a big beneficiary !!!! However, everyone should one's own due diligence !!!

      Delete
  52. Kunal, kaya's one press release suggests operating margin of 8.2 cr for q1... Can you pls make me understand how this 8.2 cr OM? Looking at q1 result, i am not able to calculate that 8.2.. Well again and again I am going through available information on kaya, reviews, produts on flipkart etc.... I can say that in q1, on one side they are talking abt exception items that reduce profit, the profit is bcz of other income ( mostly interest on cash)!!! Well i am sure you have seen financial of kaya... Plz share your views. I will look at it aroud 500, not 600 as written above.
    Also find good review of kellton on fb, glassdor, web news etc... Have you looked into it?
    -anand

    ReplyDelete
    Replies
    1. That is because (Depreciation and Amortization) expense is included in the total expense, in result sheet. While calculating EBIDTA margins, this cost has to be neglected.
      If you add this expense of 2.38 Cr to Point 5 total, which is 5.88 Cr, you will get close to 8.2 Cr...

      Delete
    2. Got it... Thanks

      Delete
  53. Munjal Auto has appreciated 100% since its recommendation 4 months back..
    http://fundamentalstockideas.blogspot.in/2014/05/munjal-auto-industries-accelarating.html

    One can continue to hold for long term. No comments on short term behavior..

    ReplyDelete
  54. Ricoh India, a printing & document solutions and IT services provider, has unveiled a new printing solution that can print medical images like X-Rays on plain paper instead of conventional films. This printing solution will help in bringing down the cost of healthcare delivery, is environmental friendly and makes documentation work flows a lot easier to manage.

    DICOM (Digital Imaging and Communications in Medicine), has changed the practice of Radiology. DICOM has enabled advanced medical imaging applications that has “changed the face of clinical medicine.” From the emergency department, to cardiac stress testing, to breast cancer detection, DICOM is the standard that makes medical imaging work – for doctors and patients.

    Ricoh DICOM print solution is designed specifically for healthcare sector, to meet the needs of Medical Imaging Department. Using this solution all medical images from different modalities like X-ray, CT, MRI, Ultrasound, etc can be directly printed on plain paper by Ricoh MPC2003SP printer. This coloured printer has been specifically customized for this process. The printing solution also impacts the environmental aspects of customer’s daily operations, as DICOM plain paper print reduces the need for chemical-based film processing and equipment, and further can be shredded and recycled.

    One of the major challenges that the Indian diagnostic and health care industry faces is high print cost of medical imaging. It is also tedious to manage multiple printing devices for different medical images, and administration of various output sheets like films and papers. This conventional method and its higher running cost forces the diagnostic industry to compromise on the profits in order to ensure the customer retention. Now with Ricoh’s entry to medical image printing, the cost can be reduced by 50% which will help the Industry to address the above concerns.

    Manoj Kumar, Executive Vice President & CEO – Ricoh India Limited said, “Ricoh has always been at the forefront of bringing innovative products to its customers. Ricoh has launched this printing solution, keeping in mind the affordability of healthcare for the patients and customer satisfaction. We are already leading in Digital Multifunction printers and have a substantial market share of laser printers. With this endeavour, we look forward to cater all printing needs of the healthcare sector and further hope to strengthen our visibility in this space.”

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  55. Hi Kunal,

    I need your opinion about a company called MRO-TEK. This is a Bangalore based company which used to trade at 100+ few years back. Company was badly hit by recession and last 5 years they are posting losses. The points which are of interest here are..
    1. Current market cap of the company is 17 Crores. The assets that company has are worth more about 10 times the current market price. 3.5 Acres Office land in Bellary road, Herbal, Bangalore is worth more than 100 Cr as this is a prime locality now. Company factory is located in 1.76 acres land in electronics city which worth more than 25 Cr. Company factory buildings, machinery, Inventory, brand name are worth another 25 Cr.
    2.Although company posted losses in last 5 years it could manage with the free cash it had on books. Only this year they have taken small loan from bank for working capital.
    3. Company diversified into Solar last year and slowly developing business in this segment.
    4. Management is very honest. They invited Dr. Abdul Kalam for the Silver Jubilee celebrations.
    5. Last 2-3 quarters company posted minimum loss and might turn positive any time soon.
    6. Company coming up with rights issue to raise money and also reward long term share holders.

    Request you to do some analysis from your side and let me know your opinion.

    Regards,
    Jay

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    Replies
    1. Hmm... Interesting... Thanks, will surely take a look...

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  56. Hi Kunal ,

    Do you track Freshtrop Fruits ? How do you rate it , if you like it ..

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  57. Gulshan has created valuable assets !!!! Although it may take two to three quarters to ramp up the operations and started impacting favourably the bottom-line !!! Full benefit to be seen in FY2015-16 !!! They may start working on ENA distillery project shortly and which should be ready any time during FY2015-16 !!!! FY2016-17 may see a topline of around 700 crores just double from 2013-14 !!!!

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  58. Hi Kunal,

    Do you think one can make fresh entry in Flex foods? do you still see it as value buy at CMP? and what is your current opinion about its future growth from here?

    Thanks for all your hard work.
    God bless

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    Replies
    1. Hi Vivek,

      I don't think there has been any change in fundamentals of the company. Just that, it has gone weak technically.

      Regarding whether or not, it can be bought at current market, I would say it depends on investor, as I have mentioned clearly mentioned the positives as well as risk factors..

      Historically, the stocks of Uflex group has traded at low PE, so that also will be one of the factor. I continue to stay positive, but for long term.

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  59. What's your view on the management ... the MD was involved in fraudulent case before... What is your expectation on the same. The only concern for the company seems to be the management.The remaining factors look sound for the company with strong margins and better growth prospects. Please share your view.

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    Replies
    1. Please put your comments on latest thread..

      I agree and have mentioned the same in some earlier comments also...
      That is the reason why most of UFlex group companies are trading at a low P/E
      But here, I am confident of business more than the management...

      The decision to go with it or not should be completely readers call...
      My aim is to put forth the positives and negatives about the company, and probably, I am posting those, where I see more positives..

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