Its been long since I posted anything on this blog, primarily due to busy personal schedule. Hearty apologies for that as I too miss readers company on this blog. Some of you have been very helpful in providing me with the valuable details and others have given me motivation to go ahead with this blog, irrespective of any material gains.
Off-late, I have had some free time and hence I thought I would put something on the blog, so that discussion can proceed as earlier, which might enhance our involvement in individual companies with some numerical as well as factual data.
As you all might be aware, the new SEBI rule doesn't allow any individual to recommend a buy/sell/hold call on specific stock or on overall markets, without being registered as Research Analyst certified by SEBI. The rule is definitely for the betterment of common people, and there is no point on being against the rule.
Since I am not a research analyst, nor an investment advisor, I wont be giving any specific call of buy/sell/hold on any company. I am only an investor in Indian Markets and expressing my opinion based on my limited knowledge. My comments on any company should not be taken as recommendation. It will only be my persoanl views. Each reader is requested to do his/her analysis, and consult their financial advisor before taking any decision.
We will only use this blog as a medium to discuss the companies that I or you, think, is having a possible bright future or even just for knowledge purpose.
At the onset, let us revisit all the stocks that have been discussed so far on this blog in present scenario:
1) Ajanta Pharma:
The company continues to outperform, with its sales and profit growth over the years, and last few quarters has not been an exception to that. The stock price has been under pressure for last few months, but that short term behavior hardly matters, when business is growing so well.
The stock has already gone up close to 13 times since we started discussing it, even at current price.
Looking at financials of the company, I am still positive, and with 2 new plants close to commencing operations, I think the growth rate might continue at same pace.
The company's operation efficiency is improving with every quarter. The net profit margins are nowadays close to 25.
Apart from good CAGR in sales and profit, other performance ratios like ROE, ROCE, D/E are also looking great for the company.
2) Granules India:
There has been so much buzz about this company nowadays, that now I dont think, I need to post any details about company's result or other financials, to prove how well, the company is growing.
Almost all the research house are coming up with the positive report on Granules India.
Earlier, there used to be times, when I had to fight many people on this blog to prove that Granules India will be doing good in future with their agrresive expansion plans and improvement in operational effiency. I feel the company has proved me right as far as last few results are concerned; otherwise as you all are aware, nobody can predict the future. :)
3) Ricoh India:
This company is on a dream run, and its performance over past few quarters have justified such a run up. The stock has already gone up by 20 times from the date it was first discussed on this blog.
Still positive on the company's performance in the long run if things go on as expected by management here:
http://www.thehindu.com/business/Industry/ricoh-india-bets-on-it-services-to-sustain-growth/article7689846.ece
http://www.business-standard.com/article/companies/ricoh-india-aims-to-quadruple-revenues-by-end-of-fy17-115042000967_1.html
4) Dewan Housing Finance:
This is still one of my favorite company as far as housing finance names are concerned.
The results have been good over the years, and as I said earlier also, if Prime Minister's vision of Housing For All by 2022, comes true, then this company should benefit.
We started discussing the stock here when it was trading at 158 Rs (unadj), which implies a price of 79 Rs as of today, after 1:1 bonus declared by the company.
In my views, the company should perform well in coming quarters/years, however, one's own conviction is very important in this sector.
5) Can Fin Homes:
When we started discussing this company here, very few people were aware of this name. However, their past growth and quick expansion were too attractive at that time for me to post my views on it. The stock was languishing at price of 140 or so at that time.
However, based on its continuous positive performance, it has caught attention of many investors by now and the stock was accordingly rewarded.
At current price, I would remain neutral on it.
6) Suven Life Sciences:
Fundamentally a good company, but, the it has not been able to deliver as far as results are concerned for past many quarters now. However, management is quite hopeful of resumption of growth from next year. Off-late, they have got plenty of product patents in various countries as well as many of their molecules going for clinical trials in US.
All these should contribute to revenues sooner or later. The company is mostly into high margin CRAMS business, which is why all the ratios based on returns are looking awesome.
If we look at it with a longer term perspective, the company is not very expensive even at these escalated levels. Once growth returns, the P/E should come down considering current market price.
7) Gulshan Polyols:
When we started discussing the stock here, it was a case of sheer undervaluation. The stock was trading around 75 Rs with a P/E of close 2. Generally, those kind of valuations are seen in companies with some or the other fundamental issue like high debt and other. However, that also was not the case with Gulshan Polyols.
Today it is trading aroung 420 Rs, but still, if we consider P/E ratio, it is still close to 10.
Strong set of clients, and introduction into grain base liquor business, still keeps me positive about the company's performance in longer term. Plenty of other details about this company can be found by using Search functionality on this blog.
8) Cera Sanitaryware:
Close to 4 times from the day we started discussing it, but still, has fallen almost 40% from its high in recent times on the back of assumptions that the company is not able to grow as expected. The minor hiccups on the upside and downside, are part and parcel of life for any country or company for that matter. So is the case with Cera. Off-late, they have not posted growth as it used to post earlier, and also the management has reduced the growth guidance for FY16 from 25% earlier to 20% now.
Even with the modest growth right now, the company is able to grow in all segments which is good to see. The company has recently entered into a joint venture agreement with Anjani Tiles for setting up a plant to manufacture high-quality ceramic vertified tiles, in Andhra Pradesh. The company has also decided to open offices in Dubai in order to increase exports to West Asian countries.
Overall, I still feel there is plenty of scope for the company to grow at a pace it was growing earlier, and with increased government initiaitves for Swatch Bharat, it seems possible in future.
9) Camlin Fine Sciences:
Nothing more to add as of now, from the earlier discussion that we had on this counter. It has already grown close to 10 times from the day, we started discussion here. One can rely on his/her analysis here, by referring to the facts on this blog, if required.
10) TCPL Packaging:
This company certainly has delivered much more than what I expected of it, in the original post. The results have been above expectations in past 2-3 quarters. The execution is also improving which can be seen through improved margins for the company. The net margins are above 6 now, from 2-3 levels in 2014. It seems the company is likely to sustain those margin levels and accordingly the stock has been rewarded.
The stock is already 6 times since we started discussing here.
11) Steel Strip Wheels:
We started discussion on this when it was trading around 290 levels. The stock has not got appreciated a lot from there, however, in terms of performance, I feel there is tremendous growth potential is this company. They have been receiving plenty of orders, and on top of it, the execution has improved, which is reflected in net profit growth every quarter. The net profit growth has been in the range from 50%-200% yoy for the past 4 quarters, which is very good to see.
The promoters are also aggressively buying in this counter as of now.
Hoping to see even better results in coming quarters.
12) Control Print:
Again, not much to add as of now from our earlier discussion. It has appreciated a lot in recent past, because of consistently good numbers. Management is also very good. Already we have seen dividend coming twice this year, and on top of it, recently, the management has declared Bonus share in the ratio of 1:2. Good to see the management of such a small company looking to share the profits.
13) Somany Ceramics:
Views same as for Cera Sanitaryware
14) Garware Wall Ropes:
Another company like TCPL Packaging which has surprised one and all, with its performance in terms of sales as well as profits.
I am still positive about their business prospectus. Here are some of the links which enforces me to think so:
http://www.thehindubusinessline.com/economy/agri-business/garwarewall-ropes-bets-big-on-protected-farming-aquaculture/article7444111.ece
http://www.financialexpress.com/article/companies/garware-wall-ropes-conferred-with-the-top-exporter-award-by-the-plastics-export-promotion-council/153540/
http://www.business-standard.com/article/companies/garware-wall-ropes-eyes-rs-1000-crore-business-by-2017-115061500585_1.html
It can be assumed that I have either stopped tracking or not deeply into the names which might have been discussed earlier on this blog, but is not seen in the list above.
Currently, the stocks I am studying are PI Ind, Talwalker Better Value Fitness, Indo Count Ind, Patel Airtemps, FIEM Ind and Lincoln Pharma.
I repeat, the above mentioned details, are just my views on the specific companies, and they by no means, imply any sort of recommendation of buy/sell/hold.
Each reader has to take their own decision by analyzing themselves or by consulting a private financial advisor.
Off-late, I have had some free time and hence I thought I would put something on the blog, so that discussion can proceed as earlier, which might enhance our involvement in individual companies with some numerical as well as factual data.
As you all might be aware, the new SEBI rule doesn't allow any individual to recommend a buy/sell/hold call on specific stock or on overall markets, without being registered as Research Analyst certified by SEBI. The rule is definitely for the betterment of common people, and there is no point on being against the rule.
Since I am not a research analyst, nor an investment advisor, I wont be giving any specific call of buy/sell/hold on any company. I am only an investor in Indian Markets and expressing my opinion based on my limited knowledge. My comments on any company should not be taken as recommendation. It will only be my persoanl views. Each reader is requested to do his/her analysis, and consult their financial advisor before taking any decision.
We will only use this blog as a medium to discuss the companies that I or you, think, is having a possible bright future or even just for knowledge purpose.
At the onset, let us revisit all the stocks that have been discussed so far on this blog in present scenario:
1) Ajanta Pharma:
The company continues to outperform, with its sales and profit growth over the years, and last few quarters has not been an exception to that. The stock price has been under pressure for last few months, but that short term behavior hardly matters, when business is growing so well.
The stock has already gone up close to 13 times since we started discussing it, even at current price.
Looking at financials of the company, I am still positive, and with 2 new plants close to commencing operations, I think the growth rate might continue at same pace.
The company's operation efficiency is improving with every quarter. The net profit margins are nowadays close to 25.
Apart from good CAGR in sales and profit, other performance ratios like ROE, ROCE, D/E are also looking great for the company.
2) Granules India:
There has been so much buzz about this company nowadays, that now I dont think, I need to post any details about company's result or other financials, to prove how well, the company is growing.
Almost all the research house are coming up with the positive report on Granules India.
Earlier, there used to be times, when I had to fight many people on this blog to prove that Granules India will be doing good in future with their agrresive expansion plans and improvement in operational effiency. I feel the company has proved me right as far as last few results are concerned; otherwise as you all are aware, nobody can predict the future. :)
3) Ricoh India:
This company is on a dream run, and its performance over past few quarters have justified such a run up. The stock has already gone up by 20 times from the date it was first discussed on this blog.
Still positive on the company's performance in the long run if things go on as expected by management here:
http://www.thehindu.com/business/Industry/ricoh-india-bets-on-it-services-to-sustain-growth/article7689846.ece
http://www.business-standard.com/article/companies/ricoh-india-aims-to-quadruple-revenues-by-end-of-fy17-115042000967_1.html
4) Dewan Housing Finance:
This is still one of my favorite company as far as housing finance names are concerned.
The results have been good over the years, and as I said earlier also, if Prime Minister's vision of Housing For All by 2022, comes true, then this company should benefit.
We started discussing the stock here when it was trading at 158 Rs (unadj), which implies a price of 79 Rs as of today, after 1:1 bonus declared by the company.
In my views, the company should perform well in coming quarters/years, however, one's own conviction is very important in this sector.
5) Can Fin Homes:
When we started discussing this company here, very few people were aware of this name. However, their past growth and quick expansion were too attractive at that time for me to post my views on it. The stock was languishing at price of 140 or so at that time.
However, based on its continuous positive performance, it has caught attention of many investors by now and the stock was accordingly rewarded.
At current price, I would remain neutral on it.
6) Suven Life Sciences:
Fundamentally a good company, but, the it has not been able to deliver as far as results are concerned for past many quarters now. However, management is quite hopeful of resumption of growth from next year. Off-late, they have got plenty of product patents in various countries as well as many of their molecules going for clinical trials in US.
All these should contribute to revenues sooner or later. The company is mostly into high margin CRAMS business, which is why all the ratios based on returns are looking awesome.
If we look at it with a longer term perspective, the company is not very expensive even at these escalated levels. Once growth returns, the P/E should come down considering current market price.
7) Gulshan Polyols:
When we started discussing the stock here, it was a case of sheer undervaluation. The stock was trading around 75 Rs with a P/E of close 2. Generally, those kind of valuations are seen in companies with some or the other fundamental issue like high debt and other. However, that also was not the case with Gulshan Polyols.
Today it is trading aroung 420 Rs, but still, if we consider P/E ratio, it is still close to 10.
Strong set of clients, and introduction into grain base liquor business, still keeps me positive about the company's performance in longer term. Plenty of other details about this company can be found by using Search functionality on this blog.
8) Cera Sanitaryware:
Close to 4 times from the day we started discussing it, but still, has fallen almost 40% from its high in recent times on the back of assumptions that the company is not able to grow as expected. The minor hiccups on the upside and downside, are part and parcel of life for any country or company for that matter. So is the case with Cera. Off-late, they have not posted growth as it used to post earlier, and also the management has reduced the growth guidance for FY16 from 25% earlier to 20% now.
Even with the modest growth right now, the company is able to grow in all segments which is good to see. The company has recently entered into a joint venture agreement with Anjani Tiles for setting up a plant to manufacture high-quality ceramic vertified tiles, in Andhra Pradesh. The company has also decided to open offices in Dubai in order to increase exports to West Asian countries.
Overall, I still feel there is plenty of scope for the company to grow at a pace it was growing earlier, and with increased government initiaitves for Swatch Bharat, it seems possible in future.
9) Camlin Fine Sciences:
Nothing more to add as of now, from the earlier discussion that we had on this counter. It has already grown close to 10 times from the day, we started discussion here. One can rely on his/her analysis here, by referring to the facts on this blog, if required.
10) TCPL Packaging:
This company certainly has delivered much more than what I expected of it, in the original post. The results have been above expectations in past 2-3 quarters. The execution is also improving which can be seen through improved margins for the company. The net margins are above 6 now, from 2-3 levels in 2014. It seems the company is likely to sustain those margin levels and accordingly the stock has been rewarded.
The stock is already 6 times since we started discussing here.
11) Steel Strip Wheels:
We started discussion on this when it was trading around 290 levels. The stock has not got appreciated a lot from there, however, in terms of performance, I feel there is tremendous growth potential is this company. They have been receiving plenty of orders, and on top of it, the execution has improved, which is reflected in net profit growth every quarter. The net profit growth has been in the range from 50%-200% yoy for the past 4 quarters, which is very good to see.
The promoters are also aggressively buying in this counter as of now.
Hoping to see even better results in coming quarters.
12) Control Print:
Again, not much to add as of now from our earlier discussion. It has appreciated a lot in recent past, because of consistently good numbers. Management is also very good. Already we have seen dividend coming twice this year, and on top of it, recently, the management has declared Bonus share in the ratio of 1:2. Good to see the management of such a small company looking to share the profits.
13) Somany Ceramics:
Views same as for Cera Sanitaryware
14) Garware Wall Ropes:
Another company like TCPL Packaging which has surprised one and all, with its performance in terms of sales as well as profits.
I am still positive about their business prospectus. Here are some of the links which enforces me to think so:
http://www.thehindubusinessline.com/economy/agri-business/garwarewall-ropes-bets-big-on-protected-farming-aquaculture/article7444111.ece
http://www.financialexpress.com/article/companies/garware-wall-ropes-conferred-with-the-top-exporter-award-by-the-plastics-export-promotion-council/153540/
http://www.business-standard.com/article/companies/garware-wall-ropes-eyes-rs-1000-crore-business-by-2017-115061500585_1.html
It can be assumed that I have either stopped tracking or not deeply into the names which might have been discussed earlier on this blog, but is not seen in the list above.
Currently, the stocks I am studying are PI Ind, Talwalker Better Value Fitness, Indo Count Ind, Patel Airtemps, FIEM Ind and Lincoln Pharma.
I repeat, the above mentioned details, are just my views on the specific companies, and they by no means, imply any sort of recommendation of buy/sell/hold.
Each reader has to take their own decision by analyzing themselves or by consulting a private financial advisor.
