Q3 FY'15 Result Updates - SSWL, Somany Ceramics, TCPL Packaging, Ajanta Pharma and Granules India

1) Steel Strip Wheels:

The performance of the company has been improving slowly, and it seems that the worst is certainly over, which was predicted in the original post here:
http://fundamentalstockideas.blogspot.in/2014/07/steel-strips-wheels-ltd-sswl-seems-to.html

The company again came out with decent set of numbers with sales increasing  by 7%. The sales figure didn't looked bad considering the decline in growth for the month of Oct on account of more holidays in that month with festival of Diwali and Dusherra. Plus there was a shut on account of elections in Haryana and Maharashtra. So overall, I feel numbers are looking decent. As per management, SSWL is looking at a volume growth of 16-18 percent for the full year and turnover of around 15-16 percent.
The company is likely to achieve an annual EPS of close to 25, so I don't think the stock is too expensive even at current levels. However, debt levels has been increasing because of nature of business and is the only worry right now. Promoters increasing their stakes is also a positive.

One expert view on the company is also shared on left hand side panel.

2) Somany Ceramics:

Though expensive, the company is growing stronger and stronger, and proving that the given higher valuations are justified, and there is further room for more growth in terms of revenues as well as market cap.
Sales were up by 31% and net profit up by 131%.
Not thinking of commenting much, but sharing few links which speaks a lot about the positives of the company:
Confident of achieving 20% growth in FY15
Somany Ceramics’ new campaign focuses on brand promotion
Somany Ceramics to add 30 mn sq metres capacity in 5 years, scouting for JVs
Swatch Bharat Abhiyan Will Help Sustain Growth — Somany Ceramics

Overall I am still positive on company's prospectus, but on account already existing higher valuations, it may take some time to reward further as far as stock price is concerned.

3) TCPL Packaging:

The stock has given unbelievable returns in very short time since its recommendation here:
http://fundamentalstockideas.blogspot.in/2014/06/tcpl-packaging-probable-candidate-to.html

The results after that has been fabulous which has led to this rally, and once again it did not disappoint. The sales went up by 28% and net profit went up by 169%. If one takes a look at past 2-3 quarters result, they have significantly improved their operating efficiency, which has reflected in their amazing growth in profits. An annual EPS above 30 this year is very likely now, and because of which the stock, even after such rally, is still trading at a P/E ratio below 15, based on expected FY'15 numbers.
At present valuation, I would remain neutral to positive on the company.

4) Ajanta Pharma:

I have no words to describe this company. As I said earlier also, this is one company, which a new entrant can use to learn as an ideal company. Sales once again grew by 21% and profit by 36%.
The company has been able to maintain net profit margins above 20% for past many quarters consistently, which further enhances my confidence in the company.
We have seen company growing from being a small cap to a mid cap company, and if the growth pattern continues this way, I am sure, we will see Ajanta Pharma as one of the major large cap pharma company of India.
Company has approved sub-division of equity shares from face value of 5 earlier, to face value to 2 now. I am still highly positive on the company and their future growth.

5) Granules India:

Flat numbers this time were expected as per recent management interviews, where guided 15% growth in FY'15, even after very good Q1 and Q2. To an extent, there was some production loss due to cyclone in Vizag. The sales grew by 13% and profit by 8%. Lesser growth in profit, was mainly on account of loss through Auctus Pharma.
As per management, Auctus Pharma is expected to post profit in next quarter. Also, they are expecting the company to grow at 26% next year. The Omnichem JV is currently going through clinical trials, and it expected to contribute about 50 Cr in next 2 years or so. This will be very important for the company as Omnichem JV is focused on CRAMS business, which is probably the highest margin business in pharma industry. Also, the company is focusing more towards Finished Dosages, and they are aiming to achieve 65% of their revenues for FDs in next 2-3 years, which indirectly, will improve their margins for standalone business as well.
Overall, if one has a long term view, the company is not trading at high valuation.

I have given my views on the results of above companies, but the decision whether to buy/sell/hold these companies depends on reader.