1) Steel Strip Wheels:
Finally some good reward for the long awaited story. Have been waiting for many quarters of good performance to reflect in stock prices. But finally, consistency in performance paid off to an extent. Another good quarter by the company with sales going up by 5% and net profit up by a whopping 55%. The sales numbers look flat on account of price reduction passed on to customers because of lower steel prices. In terms of volumes the growth was pretty decent compared to its peers.
For the entire year, company saw a 55% jump in net profit, which had led the EPS for the entire year stand at 40. All the performance ratio have seen significant improvement because of higher profits. The debt to equity ratio also improved on account of higher reserves and debt levels remaining almost flat against last year.
The capacity utilization at 3 of its major plants have gone up by 4%. The management is confident of achieving at least 10% volume growth this year. However, if you see the monthly numbers so far, it is seen around avg 14%, which is very good. Results might continue to impress for few quarters hopefully. Korean company being allotted around 2 Lac shares at a price of 640 Rs per share, is also indicative of business strength the company possesses.
2) Dhanuka Agritech:
So far so good, as far the monsoon is concerned this year, and this would give a huge sigh of relief for the agrochemical companies. One of the bigger beneficiary would be Dhanuka Agritech. The fundamentals of the company has always been strong with a good business model, great management and an impressive balance sheet. The only thing going against the company was poor monsoon in last 2 years. This year, it is looking good so far, and IMD is still confident of country getting 107% of long moving average rainfall in the country. This could significantly boost sales for Dhanuka Agritech. The stock prices on account of the same has already escalated and it is again trading around its all time high levels.
3) Control Print:
Another blockbuster quarter for the company. Net profit was up 85% and sales was up 17%.
No change in views from last post shared here:
http://fundamentalstockideas.blogspot.com/2016/02/q3-fy16-result-updates-continued.html
Currently the company enjoys 18-19% market share and they are confident of getting to 25% in couple of years.
http://www.moneycontrol.com/news/business/targetting-25-market-sharea-coupleyears-control-print_6915241.html
The company also started trading at NSE.
4) Plastiblends Ind:
No updates on it after the last shared post here:
http://fundamentalstockideas.blogspot.com/2016/02/q3-fy16-result-updates-continued.html
The result this quarter looked slightly better than the ones posted in past 3 quarters in FY'16.
Balance sheet had a little bit of negative as the debt levels increased from 20 Cr to 70 Cr. However, that seems to be mainly because of their new operation commencements.
One of its competitor is Masterbatches, Poddar Pigments is also looking very well poised for future growth. Both the companies are expected to perform in similar fashion going ahead, with the prediction of this industry expected to grow at 15-20% CAGR for next 5 years.
5) Gulshan Polyols:
After a poor performance in Q3, the company made a strong comeback in Q4, and registered a 21% jump in sales to go with 27% jump in net profit. For the year FY'16, company saw a 10% jump in sales and 20% jump in profit, which is quite reasonable.
I have to accept the fact the company has not shown the growth expected out of it. One of the biggest reason is that they have faced stiff competition in market off-late. Earlier, there were products where they had monopoly of being the sole producer. The situation is not same now, with good competition around. The balance sheet also seemed poor with increasing debt levels.
One of the positives is that the company is conducting trial run of maize based processing plant and aims to start production of starch powder from Q2 FY'17. Also, the company is still trading around 10 P/E which seems slightly less when compared to the industry P/E.
Overall I would be neutral on this company, as I am not sure on how company will deliver in growing competition. FY'17 would be interesting to watch out as far as their growth is concerned.
6) Ganesha Ecosphere:
For the first time in their history, the company has achieved debt to equity ratio of less than 1. The ratio was more than 2 till FY'14, but it has improved significantly in past 2 years. Apart from that, the numbers also has been impressive this year, and the trend is likely to continue. No other updates from last post.
7) Camlin Fine Science:
Again, a bit of neutral view on this. The result for the past year was not impressive. However, they continue to enjoy good market share for some of highly used products. The company is continuously looking for acquisitions to grow further. We will have to wait and watch if that pays well for the company. The company's new presentation look very promising:
http://www.camlinfs.com/docs/Investors_presentation2016.pdf
8) TCPL Packaging:
Off-late we saw another re-rating, after the first one which was massive and it took stock from 100 odd levels to 500-600 levels. The second re-rating saw it jump from 550 levels to 750 levels in no time. No doubt, one has to agree with the fact that it seems fairly priced now. But, we have seen plenty of reports which says that with monsoon playing out well this season, we could see a uptick in fmcg space, which would indirectly benefit TCPL packaging.
Both ROE and ROCE now stands above 20%, which is phenomenal.
Dividend has also picked up well since last 2 years on higher profitability.
Found one interesting article on TCPL recently:
http://rakesh-jhunjhunwala.in/maha-gatbandhan-stock-pick-of-ramesh-damani-dolly-khanna-vijay-kedia-anil-kumar-goel-will-benefit-from-patanjali-fmcg-boom-sharekhan/
9) Garware Wall Ropes:
Another company with flat topline growth and again due to lower crude prices. The net profit growth was superb for all the quarters this year, and they finally ended the year with 43.7% growth.
On business outlook, there is no change from the last post:
http://fundamentalstockideas.blogspot.com/2016/03/q3-fy16-result-updates-contd.html
10) PI Ind:
One more company, which could be benefitted from good monsoon. However, it is not the sole factor for PI Ind, unlike Dhanuka Agritech. Good amount of their revenues comes from CSM segment. For Q4, the company posted 9% growth in sales, and 58% growth in net profit, mainly due to lower taxation this quarter. For the full year, sales grew by 9% and profit by 29%. One has to agree with the fact that this has been their lowest growth for past many years. The management has attributed this to below average monsoon and some deferred payments in CSM because of softness in global markets.
However, on the positive side, the management is confident of achieving 18-20% growth this year. Their CSM order book has strengthened further from 790 mn $ to 850 mn $. Debt to equity ratio stands at 0.11%, which is quite good. Interesting the company mentioned that they initiated business in pharma segment through CRAMS, which will be high margin initiative. 3 of their molecules got commercialized last year, and 3 more are expected this year. With agro chemical spaces contributing about 40% of their revenues, it will be interesting to see, how results will look, if we have above normal monsoon this year. On top of it, we have strong order book for CSM, which enhances my confidence in their growth outlook.
11) FIEM Ind:
Excellent numbers reported by the company, with sales growing 25% and net profit up by 45%. For the entire year FY'16, the sales were up by 20% and profit was by 35%, which can be considered as one of the best performance in its sector. The benefit was largely due to LED segment, which reported sharp growth.
One of the major positives to look forward to is that the biggest client of FIEM Ind, Honda Motors, reported excellent growth in first 3 months this year. This would get reflected in Q1 numbers of FIEM Ind. Infact, sales of its second biggest customer TVS Motors was also pretty good. Also, their order book in LED segment is not yet complete. This will also help in reporting good numbers.
Plenty to look forward to as far as growth in concerned. However, one also needs to note that stock price has appreciated by almost 50% since we started discussion here, and it is now trading very close to 4 figure mark.
12) Indo Count Ind:
In FY'12, the company stood at Reserves of -1 Cr against debt of 350 Cr. In FY'16, the company stands at reserves of almost 600 Crs against debt of 320 Cr. This speaks highly about the management's competency, and the strength of business. The ROE and ROCE both stands at close to 50% this year, which is outstanding. As far as results are concerned, in Q4, they posted 15% growth in sales and 135% growth in net profit, largely on account of CDR payment of 25 Cr last year. Barring that also, the results looked quite decent, and better than most textile companies in India. On business front, there is no change in views from what was shared here:
http://fundamentalstockideas.blogspot.com/2016/03/q3-fy16-result-updates-contd.html
Apart from these names, off-late, I am tracking Salzer Electronics, Torrent Pharma, Srikalahasthi Pipes, Kitex Garments as a comeback story, Force Motors and Talwalkar Better Value Fitness since past 2-3 months.
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.
Finally some good reward for the long awaited story. Have been waiting for many quarters of good performance to reflect in stock prices. But finally, consistency in performance paid off to an extent. Another good quarter by the company with sales going up by 5% and net profit up by a whopping 55%. The sales numbers look flat on account of price reduction passed on to customers because of lower steel prices. In terms of volumes the growth was pretty decent compared to its peers.
For the entire year, company saw a 55% jump in net profit, which had led the EPS for the entire year stand at 40. All the performance ratio have seen significant improvement because of higher profits. The debt to equity ratio also improved on account of higher reserves and debt levels remaining almost flat against last year.
The capacity utilization at 3 of its major plants have gone up by 4%. The management is confident of achieving at least 10% volume growth this year. However, if you see the monthly numbers so far, it is seen around avg 14%, which is very good. Results might continue to impress for few quarters hopefully. Korean company being allotted around 2 Lac shares at a price of 640 Rs per share, is also indicative of business strength the company possesses.
2) Dhanuka Agritech:
So far so good, as far the monsoon is concerned this year, and this would give a huge sigh of relief for the agrochemical companies. One of the bigger beneficiary would be Dhanuka Agritech. The fundamentals of the company has always been strong with a good business model, great management and an impressive balance sheet. The only thing going against the company was poor monsoon in last 2 years. This year, it is looking good so far, and IMD is still confident of country getting 107% of long moving average rainfall in the country. This could significantly boost sales for Dhanuka Agritech. The stock prices on account of the same has already escalated and it is again trading around its all time high levels.
3) Control Print:
Another blockbuster quarter for the company. Net profit was up 85% and sales was up 17%.
No change in views from last post shared here:
http://fundamentalstockideas.blogspot.com/2016/02/q3-fy16-result-updates-continued.html
Currently the company enjoys 18-19% market share and they are confident of getting to 25% in couple of years.
http://www.moneycontrol.com/news/business/targetting-25-market-sharea-coupleyears-control-print_6915241.html
The company also started trading at NSE.
4) Plastiblends Ind:
No updates on it after the last shared post here:
http://fundamentalstockideas.blogspot.com/2016/02/q3-fy16-result-updates-continued.html
The result this quarter looked slightly better than the ones posted in past 3 quarters in FY'16.
Balance sheet had a little bit of negative as the debt levels increased from 20 Cr to 70 Cr. However, that seems to be mainly because of their new operation commencements.
One of its competitor is Masterbatches, Poddar Pigments is also looking very well poised for future growth. Both the companies are expected to perform in similar fashion going ahead, with the prediction of this industry expected to grow at 15-20% CAGR for next 5 years.
5) Gulshan Polyols:
After a poor performance in Q3, the company made a strong comeback in Q4, and registered a 21% jump in sales to go with 27% jump in net profit. For the year FY'16, company saw a 10% jump in sales and 20% jump in profit, which is quite reasonable.
I have to accept the fact the company has not shown the growth expected out of it. One of the biggest reason is that they have faced stiff competition in market off-late. Earlier, there were products where they had monopoly of being the sole producer. The situation is not same now, with good competition around. The balance sheet also seemed poor with increasing debt levels.
One of the positives is that the company is conducting trial run of maize based processing plant and aims to start production of starch powder from Q2 FY'17. Also, the company is still trading around 10 P/E which seems slightly less when compared to the industry P/E.
Overall I would be neutral on this company, as I am not sure on how company will deliver in growing competition. FY'17 would be interesting to watch out as far as their growth is concerned.
6) Ganesha Ecosphere:
For the first time in their history, the company has achieved debt to equity ratio of less than 1. The ratio was more than 2 till FY'14, but it has improved significantly in past 2 years. Apart from that, the numbers also has been impressive this year, and the trend is likely to continue. No other updates from last post.
7) Camlin Fine Science:
Again, a bit of neutral view on this. The result for the past year was not impressive. However, they continue to enjoy good market share for some of highly used products. The company is continuously looking for acquisitions to grow further. We will have to wait and watch if that pays well for the company. The company's new presentation look very promising:
http://www.camlinfs.com/docs/Investors_presentation2016.pdf
8) TCPL Packaging:
Off-late we saw another re-rating, after the first one which was massive and it took stock from 100 odd levels to 500-600 levels. The second re-rating saw it jump from 550 levels to 750 levels in no time. No doubt, one has to agree with the fact that it seems fairly priced now. But, we have seen plenty of reports which says that with monsoon playing out well this season, we could see a uptick in fmcg space, which would indirectly benefit TCPL packaging.
Both ROE and ROCE now stands above 20%, which is phenomenal.
Dividend has also picked up well since last 2 years on higher profitability.
Found one interesting article on TCPL recently:
http://rakesh-jhunjhunwala.in/maha-gatbandhan-stock-pick-of-ramesh-damani-dolly-khanna-vijay-kedia-anil-kumar-goel-will-benefit-from-patanjali-fmcg-boom-sharekhan/
9) Garware Wall Ropes:
Another company with flat topline growth and again due to lower crude prices. The net profit growth was superb for all the quarters this year, and they finally ended the year with 43.7% growth.
On business outlook, there is no change from the last post:
http://fundamentalstockideas.blogspot.com/2016/03/q3-fy16-result-updates-contd.html
10) PI Ind:
One more company, which could be benefitted from good monsoon. However, it is not the sole factor for PI Ind, unlike Dhanuka Agritech. Good amount of their revenues comes from CSM segment. For Q4, the company posted 9% growth in sales, and 58% growth in net profit, mainly due to lower taxation this quarter. For the full year, sales grew by 9% and profit by 29%. One has to agree with the fact that this has been their lowest growth for past many years. The management has attributed this to below average monsoon and some deferred payments in CSM because of softness in global markets.
However, on the positive side, the management is confident of achieving 18-20% growth this year. Their CSM order book has strengthened further from 790 mn $ to 850 mn $. Debt to equity ratio stands at 0.11%, which is quite good. Interesting the company mentioned that they initiated business in pharma segment through CRAMS, which will be high margin initiative. 3 of their molecules got commercialized last year, and 3 more are expected this year. With agro chemical spaces contributing about 40% of their revenues, it will be interesting to see, how results will look, if we have above normal monsoon this year. On top of it, we have strong order book for CSM, which enhances my confidence in their growth outlook.
11) FIEM Ind:
Excellent numbers reported by the company, with sales growing 25% and net profit up by 45%. For the entire year FY'16, the sales were up by 20% and profit was by 35%, which can be considered as one of the best performance in its sector. The benefit was largely due to LED segment, which reported sharp growth.
One of the major positives to look forward to is that the biggest client of FIEM Ind, Honda Motors, reported excellent growth in first 3 months this year. This would get reflected in Q1 numbers of FIEM Ind. Infact, sales of its second biggest customer TVS Motors was also pretty good. Also, their order book in LED segment is not yet complete. This will also help in reporting good numbers.
Plenty to look forward to as far as growth in concerned. However, one also needs to note that stock price has appreciated by almost 50% since we started discussion here, and it is now trading very close to 4 figure mark.
12) Indo Count Ind:
In FY'12, the company stood at Reserves of -1 Cr against debt of 350 Cr. In FY'16, the company stands at reserves of almost 600 Crs against debt of 320 Cr. This speaks highly about the management's competency, and the strength of business. The ROE and ROCE both stands at close to 50% this year, which is outstanding. As far as results are concerned, in Q4, they posted 15% growth in sales and 135% growth in net profit, largely on account of CDR payment of 25 Cr last year. Barring that also, the results looked quite decent, and better than most textile companies in India. On business front, there is no change in views from what was shared here:
http://fundamentalstockideas.blogspot.com/2016/03/q3-fy16-result-updates-contd.html
Apart from these names, off-late, I am tracking Salzer Electronics, Torrent Pharma, Srikalahasthi Pipes, Kitex Garments as a comeback story, Force Motors and Talwalkar Better Value Fitness since past 2-3 months.
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.
