Capri Global Capital Ltd - Revisit After A Long Time

First of all, the link where the stock was discussed for the first time here:
http://fundamentalstockideas.blogspot.in/2013/04/money-matters-financial-services-ltd.html

A US based real estate investment group had taken the control of the company when it got its name changed from Money Matters earlier, to Capri Global Capital Ltd, (CGCL) and they own about 50% of the shares.
Quintin E Primo III is non executive chairman of the Capri Global Capital India.
Details about board of directors and their profile:
Link: http://www.cgcl.co.in/about-us/board-of-directors.html

This should significantly reduce the risk that one feel investing in the company, after what happened in 2010, which is given in previous post.

As part of business activities, CGCL is predominantly focused into Asset Financing and Lending business. The Wholesale Lending Business segment provides specialized and holistic solutions to Indian corporates helping them build and grow their businesses with initial funding, mezzanine financing, acquisition financing etc. We focus on products in the structured credit space backed by adequate collaterals and cash flows to build a secured and quality wholesale lending portfolio.

In FY'14, the wholesale lending division disbursed loans amounting to 380.10 Cr, with overall income from the division’s lending book increasing by approximately 28% to 103.44 Cr as compared to 81.03 Cr earned in the previous year.
The division’s outstanding disbursement stood at 505.11 Cr as on March 31, 2014, growing from ` 391.17 Cr during FY'13.
Loan Book of the Company stood at 736.16 Cr in FY'14 as compared to 426 Cr in FY'13 showing a growth of 73% during the year.
Disbursements to the MSME sector in FY'14 was close to 224 crores, an increase of 564% over the previous year, while the disbursements to wholesale lending business aggregated 379 crores in FY'14, showing a healthy growth of 29% over the previous year.

The Company continued to drive the businesses with renewed energy and build on the platform created over the last two years. Company has identified industry clusters with high business potential and has opened branches at Delhi, Mumbai, Ludhiana, Ahmadabad, Pune, Surat & Rajkot to tap customers in the Micro Small & Medium Enterprise (MSME) segment.
Going forward it is planned that the MSME vertical would far exceed the disbursements of the Wholesale lending vertical. Management also has plans to leverage balance sheet during the next fiscal and has received encouraging response from public sector banks.

Few important and good points to have a look at:

1) The company continues to stay debt free.

2) On account of that and others, the book value of the company has gone up to 272 Rs per share now, which means the stock is trading at 0.6 times of book value.

3) Again in the first quarter of FY'14, the promoters accumulated 5% shares from open market, taking a total promoter holding to almost 74%.

4) The company is still trading at a P/E ratio of close to 7.

Major Risk:

1) Rajesh Sharma still holds about 25% share of the company.

2) Cash flow continues to remain negative since FY'11, though it has come down a bit.

Disclosure:

Valuation wise, the company may be trading cheaper, but as I always say, conviction is the biggest factor in stock markets. What happened earlier, will always be at the back of every big investor's mind. Hence those, who are not prepared to make such investments, can still prefer to be with Dewan Housing and Can Fin Homes, on a safe side, which were recommended earlier on this blog.

The only point for bringing this here again, is that, I genuinely feel, this is among rare stocks which haven't been given any appreciation in the just past rally, though with a reason.

No targets will be given. The recommendation is just about company's performance, which is expected to improve further.
Those with a decent risk appetite can consider this as a seriously good option for long term investment, especially those who missed it earlier
Please go through all the details given here so far, as well as on internet, before deriving a conclusion on the same.

ALL THE BEST!!!!

Control Print - Printing Their Own Way To Glory

Utilizing close to two decades of experience in the Coding & Marking Industry, Control Print has developed a philosophy that consists of partnering with the leading global players technologically. The company utilizes their unsurpassed local manufacturing infrastructure and highly motivated skilled workforce to provide the best engineered and most cost effective products and solutions for the entire range of manufacturing industries which include Automotive, Agro-Chemicals, Metals, FMCG, Pharmaceutical, Food & Beverage, Wire, Cable, & Pipe, Construction Materials, and Commercial Printing.

With company's extensive nationwide coverage of more than 120 well trained sales and service engineers, 9 offices, and 60 back end staff, Control Print provides the highest levels of pre and post sales support for a consistent, reliable, high quality customer experience.

Control Print Limited has two modern manufacturing centers located at Vasai, on the outskirts of Mumbai, and Nalagarh, Himachal Pradesh. Aesthetically designed and fully equipped, these facilities are complete with all the necessary support tools, services and amenities required to ensure the highest quality of products and services consistently. In addition to manufacturing capabilities each center has comprehensive service training facilities for external as well as internal customers.

Solutions Provided:
1) Continuous Inkjet Printer
2) Large Character Printer
3) Hot Roll Coder
4) Thermal Transfer Overprinter
5) Laser
6) Consumables
7) Digital Printing
For details, visit http://www.controlprint.com/solutions.html

Strategic Partners:

1) KBA Metronic:
KBA-Metronic Aktiengesellschaft is a medium-size technology company which specializes in the development, design, production, marketing and service of printing and coding systems. Metronic AG is also a leader in patented innovation.

2) Macsa:
Macsa has an impressive history with more than 90 years of experience, and to know its history, one must go back to 1908 when the company Framun located in Manresa (Barcelona) set up the manufacture of rubber stamps. A few years later, this company started to distribute machinery and consumables for rubber stamp manufacturers all over Spain.

My Views:
Thanks to some of the viewers of this blog, that I came across this company, and was highly impressed at the first look itself. Later on, as I kept studying the details, I found it more and more attractive, with lots of potential seen ahead for the company. Currently, they are operating at a very small level, but are expected to keep growing and achieve greater glory in future.
In the process of studying itself, I found stock appreciating from 140 to almost 200 levels, but I still feel, it has plenty more to achieve.
The company is virtually debt free, plus management has been paying very good dividend over the years.
The company has been growing at a CAGR of 15% in sales and 43% in net profit. Over the years, the company has been able to maintain very good net profit margins and last year, they were able to see it at 15%, which is generally considered very high for company with market cap of meager 176 Cr.
Last year, the company posted an EPS of 15.55 annually, which accounts for P/E ratio of 12.5 at current market price. The Q1 numbers for FY'15 were attractive enough to boost our confidence in the company, and expecting it to grow very well in all parameters this year.
The company is trying to mark its presence is entire sub-continent, with company completing the registration of its branch in Sri Lanka and is currently under the process of obtaining other statutory registration for the branch to be operative, as seen in notice of FY'14 annual result.
The balance shows a good growth as far as company's fixed assets are concerned which is another good sign. I am expecting the company to post annual sales of 110 Cr this year, with net profit of close to 18-20 Cr.
Since May 14, the stock price has almost tripled from 65 to 200 levels or so. Hence one can make entry based on his/her risk profile, and according to what one feels is the correct price to enter.
I feel the company should keep growing at a good pace, and price should follow.

Off-late, I have seen plenty of stocks getting appreciated very quickly and giving returns in excess of 100% within few months. I hope such experiences do not change the entire concept of long term investment in the mind of investors. When I say, long term, it still means, that I am talking about an investment with a time frame in excess of 2 years, with a constant check on the updates from company time to time.