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.
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.
Thanks. keep posting the update.
ReplyDeleteSure... Will do that..
DeleteHi Kunal, Could you please guide as what is the reason for continuous fall in Control print share price. TIA.
ReplyDeleteWhat I can see is that in some of the popular forums, people have raised questions on their net working capital day which is very high around 200 days and poor cash generation inspite of making decent profits.
DeleteAs I read it in report by ICICIDirect, the same is high because of their business model where they keep enough inventory of spare parts in hand so as to serve the customer with a quick delivery, unlike some other companies which might order inventory depending on the need.
As such, if you compare its peers, with 120 Cr sales and 20 Cr net profit, it is trading close to 500 Cr market cap, which is a bit high. However the valuation is more because of high performance in past few quarters.
If the results continue to impress further, we might see a better valuation in future.
The decision to buy/sell/hold should one's own and it should not be derived from above comments.
Thanks a lot Kunal for quick response.
Delete