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.
Dear Kunal, Do you track Meghamani organics ltd it is a great growth story to be unfolded in coming years it has huge land bank & interestingly Akzo noble MNC may buy huge stake in Meghamani organics ltd if you have time please study fast.Regards
ReplyDeleteAs a layman watching the stock for the first time, I could see that company has not been able to report good growth since past 3 years. In FY'16 also, only Q1 and Q4 were the quarter when they reported good growth, else other quarters saw a kind of de-growth in sales. Also, the margins seems to be a bit less. Due to which, you can also see that ROE is tremendously low.
DeleteDebt levels are also a bit on the higher side..
If it is a story, which is yet to be unfolded, I need some time to review all the factors surrounding the company. Till then, I am not in a position to comment on anything...
Dear Kunal,
ReplyDeleteI'm holding kitex at 575/share and inox wind 311/share.any suggestion on this company?Can i hold both even after reaching my holding price or shall i book no loss/no profit in this..apprieciate your suggestion.thanks for your guide towards small investors.
Regards,
Satheesh
Hi Satheesh,
DeleteSomewhere, I feel confident about growth in Kitex Garments. I tend to trust management and their confidence in expected growth for FY'17. If that happens, and also if they eventually go on to become a debt free company, then I think there would be plenty of positives about the company that investors might look at. I won't comment on price or actions that can be taken...
http://economictimes.indiatimes.com/opinion/interviews/expect-20-growth-in-fy17-sabu-jacob-kitex-garments/articleshow/51694799.cms
This is strictly my views, and should be not be taken as verdict. Let's wait for Q1 results on 20th July, to get more idea.
I don't have much idea about Inox Wind... Sorry for that..
Thanks Brother.God Bless you..
DeleteHi Kunal, with all your permission, may i know what all teh stocks you holding from the stocks you mentioned here -
ReplyDeleteI am tracking Salzer Electronics, Torrent Pharma, Srikalahasthi Pipes, Kitex Garments as a comeback story, Force Motors and Talwalkar Better Value Fitness
Cheers!
Mayur
All of them ;)
DeleteBut as mentioned from last 2-3 months...
Prices has moved up slightly from those levels now..
Hi , Couuld u plz explain why Kitex can be a comeback story?
DeleteAlso please advise ur view after parent company Ricoh wants to infuse capital and kick out Indian promoters
For Ricoh India, you can read comments section here:
Deletehttp://fundamentalstockideas.blogspot.in/2016/03/q3-fy16-result-updates-contd.html#comment-form
No more comments..
Regarding Kitex, I say comeback story as in last 1 year, it has lost more than 50% of its market cap since it made a high of some 1050...
The main reason being management not leaving upto the expectation of making the company debt free, some major clients disappointing and company not able to register historic growth of 20%.
However, when I saw some management videos and read some development about the company, I am a bit confident about company once again clocking 20% growth and net profit will naturally be much higher. Also, I see company becoming debt free this year.
These are strictly my views. Please do your own analysis before investing.
which one is trading very near to your price? The reason asking behind is nothing but margin of safety ;)
ReplyDeleteVery sorry, can't disclose that...
DeleteAnd more importantly, I don't buy a stock at one go. Its always in bits and pieces, as and when I am sitting on cash. So you cant conclude much from my different buying zones... :)
Indocount falling since last few days....any negative you're aware of? If not, time to accumulate i guess.
ReplyDeleteNot aware of any negatives...
DeleteThe decision is up to you as usual..
Dear sir,
ReplyDeletewhat is your view on Maithan Alloys at cmp for long term ?
Thanks,
Ranu
Sorry... not tracking..
DeleteExcellent numbers from Ajanta Pharma and PI Ind even in tough environment....
ReplyDeleteThey continue to justify their high valuations...
Ganesha Ecosphere Ltd has decided to increase its installed capacity by setting up another production line of Recycled Polyester Staple Fibre (RPSF) with capacity of 21,000 Tons per annum (TPA) at its unit situated at Temra, Bilaspur, Distt. Rampur (U.P.), making consolidated RPSF capacity of the Company to 1,08,600 TPA.
ReplyDeleteHope you still track this company? looks positive.
Yes.. of course... the name is considered in this post itself..
DeleteIt is just that I had nothing more to add at that time...
Hi Kunal,
ReplyDeletewe are waiting for your next pick. when it will be any idea ?
Abiding by the SEBI rules, I have stopped giving any direct recommendations and details related to it..
DeleteAs such, I will be only posting result updates. Off-late, I have added 4 companies in result updates, for which there was no detailed post or recommendation. I will continue to add companies in similar fashion only. I will only analyze result.
You have decide what action needs to be taken based on your conviction and analysis. I can only help you with this much.
Hi Kunal,
ReplyDeleteWhat is your view on below stocks after their Q1 results.
Capital First (Purchase price is : 589)
Force Motors (Purchase price is : 3000)
Mold tek Packaging ( purchase price is 40)
Mafatlal Industries ( Purchase price is 260)
Capital First could prove to be decent compounder over the years.
DeleteForce Motors: Performance wise, it is one of the best in the sector. However, I see few issues with management in not paying much attentions towards investor community. Not sure if that changes going ahead.
But still, performance wise, it should keep growing at same pace. Even their balance sheet is very strong.
Not tracking others..
Dear Sir,
ReplyDeleteWhat is your view on Arfin India ?
Sorry..Not tracking it..
DeleteHi Kunal,
ReplyDeletewhat is your veiw on below mentioned stocks ?
Magna Electro Casting
Daikaffil Chemicals india
Manugraph india
CG-VAK software
Fiberweb (India)
Do you think anyone has value to buy at CMP or at what price for long term ?
sorry, not tracking any of the given names..
Deletemagna Electro is very good company and performing consistently. it posted 90% jump in net profits in recent Q in not so favor conditions in same sector...if ur holding then continue to hold as once the sector is revived it can give multifold returns...
DeleteDiscl: Holding it from 112
-Mayur
Thanks for the info Mayur..
DeleteAs such, I am not tracking the same..
pls share your views on century enka and singer india ?
ReplyDeleteBoth are well managed companies...
DeleteCentury Enka has strong fundamentals but company is not placed in one of the better segment in textile sector. Not sure on how to go about this.
Singer India has kept on posting good growth, but they are taking a hit on margins front. Patience might be tested in this case..
Hi Kunal
ReplyDeleteWhat is your view on Dhabriya PolyWood at CMP ?
Not tracking it.
DeleteWhenever anyone puts a new stock, please don't forget to put the positives that you are looking at in the same. It will help me in analyzing the stock..
Thanks..
Hi Kunal,
ReplyDeleteDhabriya PolyWood : Potential is there but need to study more about the reason for sharp fall in profit compared with previous year.
as per my understanding business mode is good.
Thanks.
Thanks. Will take a look.
DeleteHi Kunal,
ReplyDeleteWhat is your view on below stocks.
Valiant communication (getting orders and q1 result is also good.)
Godrej properties
RSWM
Bombay Dyeing and manufecturing company
Thanks...
Godrej Prop is one of the better run company in its sector. I did mention about this earlier also, that if you have to be in Realty sector, then you can think of something like Godrej Prop.
DeleteAs such, I am not into the sector at all.
Same applies for Valiant Communications. Not tracking the sector.
RSWM is good company. If they address their debt issue slightly, the stock might be rewarded.
Didn't find anything attractive in Bombay Dyeing in terms of fundamentals. Please let me know if you are aware of any.
These are strictly my views. Please do your own research before taking any action.
hi kunal
ReplyDeletewhat is your about the following stocks
INEOS Styrolution India
Divyashakthi Granite
Rico Auto Ind
Was tracking Divyashakti earlier, but left it later bcoz of some reasons.
DeleteHowever, it looks decent to me even now.. Will have to go into more details.
I have my doubts on Rico Auto. Not convinced somehow.
Not tracking INEOS Styrolution.
Hi Kunal, whats your views on Salzer results? looks like flat numbers.
ReplyDeletealso, not happy with their decision of going with splits when price is only 250 and descent volumes. your take please?
Agree that it is not a wise decision... However the decision is already deferred in yesterday's meet. So no issues there...
DeleteTalking about results, as per management last year in Q1, they had got a 1 time contract worth 16 cr revenues and 1.9 cr profit, which is almost nil this time.
Barring that, results looks good.
However, markets might not like the results overall, so we might see a little bit of selling.
Having said that, i am personally happy with numbers ignoring the 1 time contract last year. Also the result presentation is also informative and impressive.
Please take your own decision based on your conviction and after consulting expert.
Thanks for your input..yes i missed that one time contract thing..
DeleteAlso, do u track/like Veto switch in almost similar sector?
-mayur
Not gone through the details... will check and let you know...
Deletehi kunal
ReplyDeleteWhat is your view about fineotex chemical
Like the company overall. Came into my radar just few days back. Not yet completed the study.
DeletePositives:
1) In one of the better sector, as it is assumed that specialty chemical industry is expected to grow at good pace is next 2-3 years, and companies are likely to give good returns as good growth might lead to re-rating in the entire sector. We might see increased average P/E for the sector, as it is pretty low right now.
2) Products serving to varied sectors.
3) High promoter holding, and that too increased off-late.
4) Almost debt free.
5) Increasing PAT margins (but this may be because of reduced raw material prices.)
Negatives:
1) Return ratios are not that good (However it is increasing off-late because of higher profitability.)
2) P/E ratio not that low to call it undervalued at present.
3) Consolidated revenue growth last year was not in line with some of the better players in the sector (However Q1 FY'17 was good.)
4) 90% of the revenues coming from only 1 sector which is never a good sign. Slowdown in sector could affect the growth of company.
Thanks brother
Deleteregards
Nafees
respected sir,
ReplyDeletewhat is your comment after the Q1 result of il&fs engineering.
Don't like the company as such. Infact I have never invested in the entire sector.
DeletePlease don't use such notations...
DeleteYou can address me with my first name only.. I like that...
Dear kunal hi.... Can u pls share ur views in following companies for fresh buy at cmp or any best company from following sectors ...
ReplyDeleteSks microfinance
Advanced Enzymes
Water base
ABFRL
Hi Nirav,
DeleteIn SKS, I think most of the good performance is priced in the recent run-up. Journey will now more depend on their future performance. As such, I am not tracking the company.
Advance Enzymes is one of the recent listings, and as such, I don't tend to trust the valuations given to recently listed companies. In most of the cases, I feel they are mostly a bit more stretched than industry average. In most of the cases, profit booking takes place gradually. Having said that, I don't think company is bad. It seems to have very good prospects, but it certainly doesn't have the fundamentals equal to Ajanta Pharma. I am saying that because both are right now, trading at equal P/E based on FY'16 numbers. I would wait for company to deliver some good numbers in coming quarters, to gain some confidence. Potential is definitely there. Take your own call. I am a bit safe side investor. :)
Waterbase, I feel they need to work on consistency. Avanti Feeds is operating with way better fundamentals and growth visibility in similar sector, at least at present.
Good monsoon this year plus implantation of 7th pay commission is likely to increase the purchasing power of common man to an extent. This should help ABFRL.
Regards.
Hello Mr.Kunal,
ReplyDeleteCan you please analyse lincoln pharma's Q1 2017, which seems to be excellent for me, also have a look at their business presentation which is also impressive. For me I feel in by 2020 it could cross 1000.I have a huge allocation as we discussed some time ago.Thanks in advance.
As I said, fundamentally, in terms of results, balance sheet and earning ratios, they are continuously improving. The only concern was what happened in Jan-Mar qtr, with all the buzz surrounding ban in Tanzania.
DeleteThat raised lots of questions on transparency of management.
However, now, with sharing separate press release and such earnings presentation, they are trying to regain investors confidence.
Once they do so, there should be re-rating on the counter as they are trading pretty cheap right now when evaluated based on their earnings.
When that will happen or will it happen any day or not, is the million dollar question.
Till then, there is no harm is applying wait and watch strategy, as good results might help them cap the downside to an extent from current levels.
These are strictly my views.
Regards.
Hey Kunal, Indocount down by 15% today. What's the reason behind it? is it due to cotton price rising or not so great results?
ReplyDeleteI dont see any change in fundamentals..
DeleteThe results were slightly sub-dued when comparing it with growth in past few quarters. The management is still confident of achieving 15-20% growth for the year.
If that is the case, then profitability should be higher by 30% or more because of the increased operation efficiency. Considering that, EPS for the full year would be around 80-85, which makes the stock trading around 10 P/E right now, based on FY'17 earnings.
Where 10 P/E might look ok considering the textile sector, but one has to agree to fact that you don't get a textile company with such a strong balance sheet.
As per the investor presentation, they have further reduced the debt in Q1, and now it stands around 220 Cr or so.
The reason for the fall, might be because of negativity around Welspun India, which is the direct competitor of Indo Count, and as I said, the drop in margins and growth compared to last few quarters.
Dear Kunal,
ReplyDeleteHope you are doing good.I have below stocks in my portfolio,which is in red..may i know your thought whether i can cut the loss or i can average or wait for to turn green.
SKM=-40%
IL&FS= -45%
mindtek = -35%
inox wind = -32%
Tara jewel = -30%
cupid= -25%
Kitex = -20%
Welspun = -20%
God Bless you..
REgards,
Satheesh
Hi Satheest,
DeleteFrom the listed companies, I like Kitex and Cupid.
Not tracking Mindtek. Only into Zensar Tech & Persistent from that sector.
As you might be aware, I don't like Power & Infra sectors at all. So, I might not be the best person to answer that.
Jewellery stocks I have stopped following because of heavy dependency on gold, silver prices, which are highly volatile.
Welspun is good company, but just went through a nightmare as one of its major client cancelled the order over quality issues. One has to agree that impact was much severe on stock price, as the product in question accounts for only 1% of their sales as per management clarification. But these quality issues are slightly worrisome and raises lots of questions on management and their future approach.
As such, I am not deeply into Welspun India. Instead I am following one of its competitor i.e. Indo Count Ind.
Not tracking SKM...
Regards.
Thanks Brother for your guidelines.Have to wait n watch for Kitex,cupid and Welspun. :-)
DeleteWhat is your view on Patels Airtemp?
ReplyDeleteManufacturing sector is showing signs of recovery and this time, we saw that it grew fastest in past 13 months.
DeleteIt seems that the best is yet to come from the sector looking at the efforts government is putting in, and if that happens, Patel Airtemp can be one of the companies which could benefit.
No change in previous opinion. Patience might be required here.
Off-late, we have seen that company just hit its all time high with decent volumes, which is a good sign.
Also, this year saw a good improvement in their balance sheet as well.
Overall, things are looking good as of now.
Time will tell the rest.
Regards.
Sir,
ReplyDeleteYour thoughtful analysis of quarterly results of companies is pleasantly readable without giving any buy/sell comments.Regarding the quarterly results of nitco tiles and indian acrylics ,the former is gradually reducing net loss and later is steadily improving the net profit.Kindly give your valuable comments. Can there be turnaround going forward.
Thanks and regards