Q3 FY'16 Result Updates Continued...

1) Camlin Fine Sciences:
This is one company which is placed in a sweet spot because of its great product pipeline, where they find hardly any competition in India, as well as not much competition globally. In spite of such position, the numbers this year has not been up to the mark. All the 3 quarters have seen de-growth in sales, which is tough to believe.
On the positive side, the company has setup a new plant in Dahej, which is likely to boost their sales further as per management. It is expected to operational by FY'19. On the other hand, the company has acquired 65% stake in Mexican company for 53 Cr. The company manufactures specialty intermediate chemicals for feed and food manufacturers, pet food manufacturers and industrial customers.
It will be important to see how these 2 things pans out for the performance of the company in future, as it seems that there is no value unlocking left at this price. However, with company looking to expand in different geographies, there might be a scope for better performance in future and accordingly the price should move. Till then, I continue to remain neutral on it and hope for a better FY'17 in terms of numbers posted by the company.

2) Gulshan Polyols:
After a series of good quarters by the company, we finally saw a poor performance. For the first time in past 2 years or may be more, the company has posted a de-growth in sales for the quarter ending Dec'15. Even in the press release, there is nothing specific about the poor show in sales, but it seems that the overall poor environmental conditions in India could be one of the reason.
On completion of first 9 months, the growth still looks decent with 6% growth in topline and 18% in bottomline. After making a high of 450, the stock has now again started trading below 10 P/E, may be triggered by poor quarterly results.
Overall it still looks better poised for good performance going ahead, based on the updates that were posted here earlier.

3) Plastiblends Ind:
The results might not look the best, but the potential is certainly there. Currently the company exports to 60 different countries, and exports form around 35% of their total revenues. The company is likely to end the year with flat sales around 500 Cr, but the profit has improved by more than 20% over last year.
The company has setup a 4th plant in Kolkata with 66 million pounds capacity to cater to increasing demand in eastern India, which should be operational around Dec'16. Also, its 3rd plant in Surat is about commence operations in next 2-3 months.
Since the inception of discussion on this blog, it had already grew more than 4 times to make a high of about 520, and then on account of overall market conditions, it has consolidated a bit.
For longer term perspective though, it seems that numbers will improve going forward.

4) TCPL Packaging:
So far so good for the company. They have been able to post consistently strong numbers and the same has reflected in their price. It was discussed here 1.5 years back, around Jun'14, when it trading around 100 Rs. It made a high of 700 Rs, which implies staggering growth of investors money in very short period of time. On top of good growth in sales, the company has managed to post a significant jump in net profit over past 6 quarters which has led to such appreciation.
So far in FY'16, the company has showed 18% growth in sales and 23% growth in net profit.
The company's approach towards growth and modernization is quite evident here:
http://www.indianprinterpublisher.com/news/Significant_investment_at_5053.html

5) Steel Strip Wheels:
It is purely a case of one big negative holding all the positives back. The numbers have been fabulous even this year from the company. On top of it, the promoter buying from open market and one of the Korea's largest company in its sector investing in the company at 640 Rs per share are huge positives, though it seems to be completely ignored by the investors.
The biggest problem continues to be their debt levels, which is way too high but it is noticeable that Debt to Equity ratio has improved a lot in past 3 years. For the first nine months ended Dec'15, the company has posted flat sales growth of 2%, but a huge profit growth of 55%, which speaks volumes about company's increasing efficiency. Flat sales is mainly because of general slowdown in demand, but if one goes through the company's filings in last 2-3 months, we can see company has won significant amount of orders from various companies and countries, which should help them sustain growth in future.
If one asks for my opinion on this, I would say, patience and debt management is the key here.

6) Control Print:
Repeatedly giving good performance across the year has finally paid the investors of Control Print, a great return over their investment in past 9 months. On top of it, such a small company giving bonus shares, added fuel to fire, which escalated the stock prices. However, because of overall market falling severely, good consolidation was seen off-late. Such a small company consistently posting 20% net profit margins is a huge achievement. For the first nine months, company has posted 20% sales growth and 26% profit growth.
Company has consistently paid good dividends and have maintained almost debt free status so far.
Overall, the business prospectus looks positive.

Discloure:
I am not a research analyst, nor an investment advisor. Through this post, I am only putting my views, and which has nothing to do with any action that can be taken by readers on any specific company.

Q3 FY'16 Result Updates

First of all, let me clarify that whatever views that I post here are my personal views on quarterly results posted by the company.
Please speak to your financial advisor before taking any actions on any of the below mentioned names.

The views on result expressed below are mostly about company's performance rather than evaluating whether the company's price is fair or not.

1) Ajanta Pharma:
Another strong set of numbers by Ajanta Pharma. The price movement before the quarter indicated that most investors are under impression that their Africa revenues would be affected by slowdown in their currency. However, company duly informed that all the transactions in african countries are happening in USD, as far as what I understood. The same thing got reflected in their results, with revenue growth in african countries turned out to be 40% (probably the best among their geography :)). This could be one of the reason why the price didnt fell much in last week carnage in stock markets. Not sure about that though!!! However, in our discussion here, we are least concerned about stock price movements. In terms of growth yoy, company showed 16% jump in sales and 20% jump in net profit.
Net margins continue to remain near 25%, which is great. The company in their filing has also mentioned that their new facility at Dahej has started taking regulatory filing batches, and the company has started contruction of their new plant at Guwahati, which is expected to be operational by March next year.
All in all, I am still positive about the company and their growth story.

2) Granules India:
Good set of numbers by the company, as net sales were up 8% and profit was up by 15%. The company mentioned that some of their product's pricing is directly linked to raw material prices. Hence with falling crude, they were able to post sales growth of only 8%. The good thing that margins have continued to impress over past 6-7 quarters, and management is still confident of improving it further. The management is expecting 15% revenue growth in Q4, and 15-20% growth in FY'17 over FY'16. If these numbers are delivered and that too, with further improvement in margins, it could be great for the company. The net profit by the next year, could very well be above 150 Crs.
One more positive news came in for the company, which stated that company will start trading in F&O segment from 26th Feb. We can see even more participation from FIIs then. Not sure of its impact on price, especially in current circumstances. :)

3) DHFL & Can Fin Homes:
The overall finance sector has been under tremendous pressure, and most of the companies have been affected because of that. Still, in my opinion, both DHFL and Can Fin Homes continue to look good based on their strong numbers. When discussed here for the first time, DHFL was already a midcap name and Can Fin Homes was small cap co then. Considering that, it was expected that Can Fin Homes is likely to give more returns if conditions are favorable. That was exactly what happened. Now since both are decent size companies, they are expected to follow the market trend in terms of price movement, but their performance is likely to be good, and likely to be better than some of the peers in the sector.
However, considering the current scenario, it is advisable that you take inputs from a finance expert before taking any decisions on these two names, as my knowledge in finance sector is limited.

4) Suven Life Sciences:
This company can be considered as one, where we had plenty of expectations and which has disappointed big time, since past few quarters. Obviously, when we started discussion, it was trading cheaply at 24 Rs. Since then the returns may be good, but their performance off-late has not been upto the mark, and which has reflected in their market cap reducing almost 40% from the highs.
However, they are in business, where their successful research turning to commercial returns could take a bit of time, and hence one has to show patience, if one wants to remain invested here. Lots of commercialization of their products is likely in next 2-3 years.
One can refer to the investor presentation published by the company which is quite elaborative:
http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/B31E1ECC_932E_434A_9C79_EB18ACAD11FF_115122.pdf
The decision in this company can be taken based ones own conviction, as the numbers in this company is not as predictable as may be something like Ajanta Pharma.

5) Cera Sanitaryware:
The company even in the worst of times, is still able to post more than 10% growth in sales, which is commendable. The revenues this quarter were up by 12% and net profit up by almost 25%. The company has attributed the current slump in demand, as a reason of posting lesser growth, as they had guided for 20-25% revenue growth for FY'16, which doesn't seem to be happening after the end of first 3 quarters. The company as usual, gets good amount of government orders in Mar quarters, which is likely to aid growth this time also, as per management. On top of it, their recent acquistion of Anjani Tiles, is about the commence production in middle of march, which will aid some growth for the next year. Till then, it seem, we have to wait for improvement in macros, for company to get back to their historical growth every quarter.
Again, it can be considered as a conviction bet, especially in current circumstances. If one believes, that schemes like housing for all, and few others will succeed, then it will definetely lead to better performance from this sanitaryware giant.

6) Dhanuka Agritech:
Finally, some respite for this agri company, as after 2-3 very flat quarters due to monsoon deficiency, it has finally got back to growth days. Revenues this quarter were up by 15% and net profit was up by 3%. The environmental conditions in India has kept the company's growth in check this year, but still they were able to post decent growth this quarter.
Once we have a good monsoon, the company would be one of the bigger beneficiaries.
The company's 4th facility at Keshwana, Rajasthan is expected to be operational very soon.
Their distributor network has more than doubled in past 8-9 years, which is good to see.
The company operates in one of the better sub-sector in agro-chemical space, which is plant protection, where the consumption is still lowest in India as compared to other countries. We all are aware of how much crop is destroyed by Insects, Fungus and Weeds every year.
All in all, it seems the company has very high capability of delivering good numbers! Let's hope for some respite from rain gods this time!!!

More result updates to follow!!

Discloure:
I am not a research analyst, nor an investment advisor. Through this post, I am only putting my views, and which has nothing to do with any action that can be taken by readers on any specific company.