This time, as I do not see any changes in fundamentals of our old stocks, so I will cover only new names in discussion of Q1 results in detail.
But before jumping onto new names, here is the quick update on some of our old names.
Ajanta Pharma posted another spectacular quarter which led stock to new all time high and a landmark figure of 2000, which makes the stock as our first 20 bagger company in exactly 4 years since its initial discussion here :)
http://fundamentalstockideas.blogspot.in/2012/09/ajanta-pharma-rewriting-future-of-india.html
Granules India saw another good quarter, where Omnichem JV started giving desired results. However, according to new accounting practice, the sales from JV cannot be considered in company's income from operations, which is why we saw moderate sales growth. However, profits were included and hence we saw close to 40% growth. The sales from JV is likely to be flat for Q2 and Q3. So, one can expect moderate results in those 2 quarters, as profits will be minimum on back of low sales, but Q4 is likely to be very good. JV is likely to post 90 Cr sales in Q4, and profit share of Granules could be roughly around 5 Cr.
Capri Global Capital and Ganesha Ecosphere's investors finally saw some reward with stock hitting new highs off-late, and showing more than 100% gains from our first discussions on respective companies.
NBFC sector saw a tremendous rally off-late as the future expectations from the sector are pretty high. From our list, we had Can Fin Homes and Dewan Housing, and they didn't disappoint either. Dewan Housing has turned out to be 4-bagger and Can Fin Homes, a massive 12-bagger companies for us, since their respective inception on this blog.
Suven Life Sciences, Gulshan Polyols, Plastiblends, TCPL Packaging, Control Print, Somany Ceramics, Flex Foods and Cera Sanitaryware posted moderate results, and it was one of the reasons, why they didn't participate in recent rally. However, don't think any of them is going fundamentally weak. They have already given us good returns.
Camlin Fine Science has been disappointing from last few quarters, and hence I am losing a bit of interest in the company. The higher valuation is just because of its monopoly in certain products, however, results are not giving good vibes, about the company. Last quarter was slightly better. Since it has already given us more than 700% returns and now trading above 30 P/E, I would be neutral on the company.
The best performers off-late for us are Steel Strip Wheels (SSWL) and Garware Wall Ropes to an extent. SSWL is the classic case of patience paying the investors. For 5 years from Mar 2011 to Mar 2016, there was no growth in stock price, in spite of moderate to good performance over the same period. And since Mar'16 to Sep'16, we saw a 100% jump in stock price. Improving sales in terms of volumes, improving margins, improving return ratios (because of improving margins), continuously strengthening balance sheet, receiving healthy orders from some of the best auto brands, all together led to increasing investors confidence, and some respite for small retail investors like you and me in terms of some good return after long wait.
Now going through results of some of the newly followed companies
1) PI Ind:
This is one company, where I feel the fundamentals are as strong as Ajanta Pharma, in terms of growth, return ratios and strength of balance sheet. Definitely the stock has performed over the years based on its performance, and there is no sign of undervaluation, however, time and again, it has posted numbers which seem to be slightly above expectation especially on profit front, because of its operation efficiency, good product mix and better tax management. On revenue front, where, for first time, we saw subdued performance in FY'16, has also shown good improvement, with sales growing 15% in Q1, on back of 20% growth in CSM business. One of the reason for poor performance last year, was lack of growth in domestic agro chemicals business, which was attributable to poor monsoon. The same is also looking good this year, with country registering normal rainfall. This could lead to even better Q2, where we can see around 20% or more sales growth.
The company order book is continuously strengthening and it now stands at 850 million dollars.
Apart from 15% sales growth in Q1, the net profit growth surprised again with 48% growth yoy.
Company continues to remain almost debt free.
Because of stock already being traded at high P/E, one can think of it as a steady compounder, but if the performance continues to impress, it can lead to even better P/E ratio going ahead.
2) FIEM Ind:
Company continues to be the fastest growing company in auto-ancillary segment, among all the major names. The same is achieved on back of strong performance from 2 of its biggest clients namely., Honda Motors and TVS Motors. For Q1 FY'17, company reported around 20% growth in both sales and profit. Since its initial discussion on the blog, we have already seen 30% jump in stock price, on the back of such strong numbers. The balance sheet kept on improving over the years and this year was no different. The debt:equity ratio is going closer to 0.5 now. The return ratios have been spectacular considering the sector. ROE and ROCE both are close to 25%. Dividend policy also has always been very good and improving.
Management is further expecting the LED business to go up by 4-5 times this year with sustainable margins.The monthly numbers from Honda and TVS motors for the first 2 months of this quarter also has been pretty good, which should indirectly reflect in Q2 results of FIEM Ind.
On top of it, FIEM Ind has signed MOU to set up JV with Su Kam Power systems for the purpose of selling and marketing of LED lighting products. This way, they will make their presence felt in retail market as well.
3) Indo Count Ind:
Following the frightening events of Welspun India, we saw indirect impact on Indo Count. However, the issue has no link to Indo Count, and it would not be fair to assume that the same could happen with Indo Count as well. So far, Indo Count haven't received any intimation from any of its client for quality. In Q1 FY'17, company reported 8% growth in sales and 16% growth in net profit. Company increased its capacity last year to 68 million meters per annum, and they are planning to increase it to 90 million meters per annum by 2017.
Because of continuously management focus on improving margins, the company is currently the best in terms of return ratios in textile sector. ROCE stands at 48% and ROE stands at close to 60%. Almost unbelievable numbers for a company in such sector.
As I always mention, the improvement in balance sheet is extremely pleasing. From debt restricting in 2008, 2016 was the first year, when the Debt:Equity went below 1, almost close to 0.5. The good news is that it has improved further with management reducing the debt further in Q1 FY'17. They are planning to become debt free soon.
Having said all these, there are always some internal risk in textile segment, with some quality issues and fluctuations in raw material prices. So, one has to be careful and be aware, while thinking of investment in this sector.
4) Lincoln Pharma:
Already had so much discussion about the company in comments section even after Q1 numbers, I don't think I have anything more to add. It is good to see that management has started taking every effort possible to regain the investors confidence since the Tanzania ban massacre.
5) Salzer Electronics:
Started following the company since Mar'16, as mentioned in previous post. Its a complete new sector for me, so not much idea about the sectorial benefits or negatives that the company might be impacted with.
It is mainly into 4 types of businesses namely. industrial switchgear, copper wires and cables, building segment and the energy management services. Switchgear business contributes about 40% of their revenues at present. Copper wires & cables business contributes around 45% at present. The energy management business depends on the order book and hence the results or contribution from it could vary. For the year FY'16, the company posted 28% growth in sales and 42% growth in net profit.
For Q1 this year, the numbers were absolutely flat, but that was because the company received a contract from energy management service worth 15 Cr revenues and 1.9 Cr profit in Q1 last year, which was almost nil this year. Barring that, the results in Q1 were also pretty good, and management is confident of achieving 20% sales growth this year as well, excluding energy management service for known reasons.
The company has signed an agreement with IPD group in Australia, one of the leading distributor and wholesaler in Australia. They will be branding Salzer's products in Aus and NZ.
They have already shipped their first consignment for the same.
The company is still pretty small and has a long way to go, but definitely, there seems to be some potential to do so.
Some of the stocks which are currently followed by me but not mentioned here are Force Motors, Torrent Pharma, Srikalahasthi Pipes, Talwalkar Better Value Fitness, Pricol and Poddar Pigments.
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.
But before jumping onto new names, here is the quick update on some of our old names.
Ajanta Pharma posted another spectacular quarter which led stock to new all time high and a landmark figure of 2000, which makes the stock as our first 20 bagger company in exactly 4 years since its initial discussion here :)
http://fundamentalstockideas.blogspot.in/2012/09/ajanta-pharma-rewriting-future-of-india.html
Granules India saw another good quarter, where Omnichem JV started giving desired results. However, according to new accounting practice, the sales from JV cannot be considered in company's income from operations, which is why we saw moderate sales growth. However, profits were included and hence we saw close to 40% growth. The sales from JV is likely to be flat for Q2 and Q3. So, one can expect moderate results in those 2 quarters, as profits will be minimum on back of low sales, but Q4 is likely to be very good. JV is likely to post 90 Cr sales in Q4, and profit share of Granules could be roughly around 5 Cr.
Capri Global Capital and Ganesha Ecosphere's investors finally saw some reward with stock hitting new highs off-late, and showing more than 100% gains from our first discussions on respective companies.
NBFC sector saw a tremendous rally off-late as the future expectations from the sector are pretty high. From our list, we had Can Fin Homes and Dewan Housing, and they didn't disappoint either. Dewan Housing has turned out to be 4-bagger and Can Fin Homes, a massive 12-bagger companies for us, since their respective inception on this blog.
Suven Life Sciences, Gulshan Polyols, Plastiblends, TCPL Packaging, Control Print, Somany Ceramics, Flex Foods and Cera Sanitaryware posted moderate results, and it was one of the reasons, why they didn't participate in recent rally. However, don't think any of them is going fundamentally weak. They have already given us good returns.
Camlin Fine Science has been disappointing from last few quarters, and hence I am losing a bit of interest in the company. The higher valuation is just because of its monopoly in certain products, however, results are not giving good vibes, about the company. Last quarter was slightly better. Since it has already given us more than 700% returns and now trading above 30 P/E, I would be neutral on the company.
The best performers off-late for us are Steel Strip Wheels (SSWL) and Garware Wall Ropes to an extent. SSWL is the classic case of patience paying the investors. For 5 years from Mar 2011 to Mar 2016, there was no growth in stock price, in spite of moderate to good performance over the same period. And since Mar'16 to Sep'16, we saw a 100% jump in stock price. Improving sales in terms of volumes, improving margins, improving return ratios (because of improving margins), continuously strengthening balance sheet, receiving healthy orders from some of the best auto brands, all together led to increasing investors confidence, and some respite for small retail investors like you and me in terms of some good return after long wait.
Now going through results of some of the newly followed companies
1) PI Ind:
This is one company, where I feel the fundamentals are as strong as Ajanta Pharma, in terms of growth, return ratios and strength of balance sheet. Definitely the stock has performed over the years based on its performance, and there is no sign of undervaluation, however, time and again, it has posted numbers which seem to be slightly above expectation especially on profit front, because of its operation efficiency, good product mix and better tax management. On revenue front, where, for first time, we saw subdued performance in FY'16, has also shown good improvement, with sales growing 15% in Q1, on back of 20% growth in CSM business. One of the reason for poor performance last year, was lack of growth in domestic agro chemicals business, which was attributable to poor monsoon. The same is also looking good this year, with country registering normal rainfall. This could lead to even better Q2, where we can see around 20% or more sales growth.
The company order book is continuously strengthening and it now stands at 850 million dollars.
Apart from 15% sales growth in Q1, the net profit growth surprised again with 48% growth yoy.
Company continues to remain almost debt free.
Because of stock already being traded at high P/E, one can think of it as a steady compounder, but if the performance continues to impress, it can lead to even better P/E ratio going ahead.
2) FIEM Ind:
Company continues to be the fastest growing company in auto-ancillary segment, among all the major names. The same is achieved on back of strong performance from 2 of its biggest clients namely., Honda Motors and TVS Motors. For Q1 FY'17, company reported around 20% growth in both sales and profit. Since its initial discussion on the blog, we have already seen 30% jump in stock price, on the back of such strong numbers. The balance sheet kept on improving over the years and this year was no different. The debt:equity ratio is going closer to 0.5 now. The return ratios have been spectacular considering the sector. ROE and ROCE both are close to 25%. Dividend policy also has always been very good and improving.
Management is further expecting the LED business to go up by 4-5 times this year with sustainable margins.The monthly numbers from Honda and TVS motors for the first 2 months of this quarter also has been pretty good, which should indirectly reflect in Q2 results of FIEM Ind.
On top of it, FIEM Ind has signed MOU to set up JV with Su Kam Power systems for the purpose of selling and marketing of LED lighting products. This way, they will make their presence felt in retail market as well.
3) Indo Count Ind:
Following the frightening events of Welspun India, we saw indirect impact on Indo Count. However, the issue has no link to Indo Count, and it would not be fair to assume that the same could happen with Indo Count as well. So far, Indo Count haven't received any intimation from any of its client for quality. In Q1 FY'17, company reported 8% growth in sales and 16% growth in net profit. Company increased its capacity last year to 68 million meters per annum, and they are planning to increase it to 90 million meters per annum by 2017.
Because of continuously management focus on improving margins, the company is currently the best in terms of return ratios in textile sector. ROCE stands at 48% and ROE stands at close to 60%. Almost unbelievable numbers for a company in such sector.
As I always mention, the improvement in balance sheet is extremely pleasing. From debt restricting in 2008, 2016 was the first year, when the Debt:Equity went below 1, almost close to 0.5. The good news is that it has improved further with management reducing the debt further in Q1 FY'17. They are planning to become debt free soon.
Having said all these, there are always some internal risk in textile segment, with some quality issues and fluctuations in raw material prices. So, one has to be careful and be aware, while thinking of investment in this sector.
4) Lincoln Pharma:
Already had so much discussion about the company in comments section even after Q1 numbers, I don't think I have anything more to add. It is good to see that management has started taking every effort possible to regain the investors confidence since the Tanzania ban massacre.
5) Salzer Electronics:
Started following the company since Mar'16, as mentioned in previous post. Its a complete new sector for me, so not much idea about the sectorial benefits or negatives that the company might be impacted with.
It is mainly into 4 types of businesses namely. industrial switchgear, copper wires and cables, building segment and the energy management services. Switchgear business contributes about 40% of their revenues at present. Copper wires & cables business contributes around 45% at present. The energy management business depends on the order book and hence the results or contribution from it could vary. For the year FY'16, the company posted 28% growth in sales and 42% growth in net profit.
For Q1 this year, the numbers were absolutely flat, but that was because the company received a contract from energy management service worth 15 Cr revenues and 1.9 Cr profit in Q1 last year, which was almost nil this year. Barring that, the results in Q1 were also pretty good, and management is confident of achieving 20% sales growth this year as well, excluding energy management service for known reasons.
The company has signed an agreement with IPD group in Australia, one of the leading distributor and wholesaler in Australia. They will be branding Salzer's products in Aus and NZ.
They have already shipped their first consignment for the same.
The company is still pretty small and has a long way to go, but definitely, there seems to be some potential to do so.
Some of the stocks which are currently followed by me but not mentioned here are Force Motors, Torrent Pharma, Srikalahasthi Pipes, Talwalkar Better Value Fitness, Pricol and Poddar Pigments.
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, may i expect you to help me in finalising decision on omkar speciality
ReplyDeleteNot strictly tracking, but like the company overall.
DeleteVery high pledging is a serious issue, however they are planning to address this issue.
Debt:Equity ratio improving every year, is a big positive.
Growth has never been issue off-late. In spite, it is expected to improve further in 2018, with capacity going to be doubled by then. In fact, this year also, we can expect around 15% growth.
Having said all that, margins has been issue for the company, apart from high pledging. Margin expansion is necessary to improve return ratios, otherwise, it starts looking fair valued even at 10 P/E.
Q1 was good. Hope to see similar performance for the year.
If results for the year turns out to in line with Q1, and pledging is reduced throughout the year, we might see a re-rating.
Patience might be key here as of now.
Regards.
thanks Kunal.As per management guidance in conference calls i am reasonably confidant on next quarters on margin expansion and growth.capital intensive business may be similar to Ganesha.but Ganesha held strong even worst scenario of crude so rerating happened.not very confident whether Omkar can pass raw material fluctuations to customers.b ut it can be buy at further dips as management seems capable.Thank you for help.
Deletethough performing great off late ,salzer electronics valuations are on higher side so was the price range bound after a big runup years back considering business it's in and track record .do you differ my opinion
ReplyDeleteSector is kind of unique and we don't have many listed players with exactly same product pipeline as Salzer. So, I don't think, it is easy to judge a fair value.
DeleteI am relying more on their future prospects, and with company signing an agreement with IPD group, as mentioned in above post, it seems to be a huge positive, and could drive to growth in coming years, as far as I feel.
However, this is strictly my opinion.
Sir,
ReplyDeletewould you please give your valuable comment on nitco and indian acrylics after the 1st qtr result.the former is gradually reducing the loss in each quarter and the later is improving its net profit steadily.Can there be turnaround.kind regards
Have been saying time and again, please don't use words like Sir and all.
DeleteNitco could benefit from good monsoon and 7th pay commission, but fundamentals does not seem to be good at present. I have not studied their product pipeline and their presence in India in detail, so I cannot share detailed information on possible turnaround. However, as you said, it is minimizing losses off late, but growth is still not coming as expected, and that is somewhere expected because of tough competition in the sector.
I would prefer to wait for some more quarters before taking any convincing decision on it.
Not tracking Indian Acrylics.
Regards.
Hello Kunal,
ReplyDeleteGood to see you back. Missed you badly. Hope you're fine.
Would like to know your opinion about Rane Madras Limited.
They're into auto-ancillaries. Two divisions. The Steering-Suspension division is pretty old and they are supposedly one of the market-leaders in the country. The Die-casting products division is pretty new though.
The Rane group is old enough. And nothing negative is heard about their corporate governance.
All of the Rane group stocks are on fire right now (particularly Rane Brake Lining Ltd). Is this value unlocking? Or is it operator game?
Would love to know your opinion about the Rane group companies, Rane Madras Ltd in particular. Please check out the fundamentals. Being a long-term investor, not much interested in short-term technicals.
As you've asked not to address you as "Sir"; so Dear Kunal, thanks a lot for guiding us through the mazes of stock market.
Hi Bishan,
DeleteI am pretty good. Thank you.
Sharing my opinion on Rane Madras.
First of the all, the stock is currently trading above 35 P/E. I am generally not comfortable with auto ancillary stocks trading above 25 P/E.
Secondly, the margin performance has been very poor.
They are not able to improve their margins, and in fact, it is actually getting weaker. Hence their return ratios are also affected to an extent.
ROE of close to 10% is not something that I generally like.
Apart from that, if you see their balance, that is not pleasing to eyes either.
Now, let's compare Rane Madras with something like FIEM Ind. FIEM Ind is currently trading around 20 P/E.
Margins have continuously improved over the years.
ROE and ROCE both are sitting comfortably above 20%.
Balance sheet has been improving over the years, and now they have brought the Debt:Equity ratio very close to 0.5.
Another benefit is the product pipeline of FIEM Ind. Their entry into LED segment could be a huge positive and is likely to grow at rapid pace in coming years. 2 of their biggest client are showing good performance in recent times.
As you said that Rane group has good reputations and never had any corporate governance issues, that probably could be the reason why it is trading at such high P/E.
If growth comes along with margin improvement, there could be a value here as well.
But I would like you to compare it once with FIEM Ind, or even SSWL for that matter, and let me know your views.
I understand that FIEM and SSWL both had wonderful past 6 months, where both of them has gained around 100%, but still at current valuation, I would request you to compare.
As usual, strictly my views.
Loved your last line, by the way. :)
Regards.
Thanks Kunal. Meticulous, as always.
DeleteI already own Fiem and I think that Fiem is a real multibagger in making.
Will delve deeper into SSWL.
Thanks again for such a prompt response, that too with so much of details.
You're amazing, really.
Hi Kunal,
ReplyDeleteYour view on APL Apollo tubes
Thanks,
Ravi
Hi Ravi,
DeleteLike the company overall, but I am able to not understand the rational behind valuation gap between APL Apollo and Srikalahasthi Pipes. Both can be considered in almost same sector.
Based on 2016 numbers, APL Apollo posted net profit of 100 Cr, whereas Srikalahasthi posted 158 Cr.
Margins are more than double for Srikalahasthi, when compared to APL Apollo.
ROE and ROCE for Srikalahasthi is again double when compared to APL Apollo.
Balance sheet situation is almost same for both.
Cash flow is slightly better for APL Apollo.
But in spite of all these, I am not getting why there is valuation gap, when some of the parameters for Srikalahasthi Pipes are much better than APL Apollo.
I may be missing some factor, but not sure of it yet, which could justify this huge gap.
I am not against the valuation of APL Apollo, I would still say, it has good potential to grow, especially if our manufacturing sector continue to perform.
But I just raised a doubt that was in my mind.
Regards.
Hi Kunal, Please share your views on Goodyear India growth prospects considering good monsoon this time.
ReplyDeleteEverything is good about the company, but you should be ready to bear the consequences of volatility in rubber prices.
DeleteIf you have the appetite to digest that, then I don't think it is a bad option.
However, it doesn't seem to be a case of undervaluation to me.
One can bet on growth in auto sector seen off-late.
Finally, you have a take your call here. :)
Regards.
Kunal Bhai , very happy ur back.we really miss ur suggestions.
ReplyDeleteRegards,
Anil Kumar
Hyderabad
Hi Anil,
DeleteActually I started writing on this blog again since last 9 months or so, not exactly sure, but its been a long time. May be you might not have visited the site.
Anyways, happy to see you too and thanks for the compliment.
As far as suggestions are concerned, we will only be discussing quarterly results on this blog, and that too, strictly in terms of fundamentals. No buy/sell call.
Queries will definitely be answered if I have the knowledge of the same.
Regards.
do you think Poddar Pigments trading at reasonable valuation and still can be considered at cmp/
ReplyDeleteMore than the valuations, I like their business. They are into masterbatches and we don't have many listed players in that segment. The segment is expected to perform very well going ahead, at least for next few years.
DeletePlastiblends, another company in that segment is also followed here. Both have decent prospects looking at the size of opportunity in coming years.
However, these are strictly my views.
Regards.
Hello Kunal,
ReplyDeleteAmong the below new stocks followed by you,
Indo Count Industries
Lincoln Pharma
Salzer Electronics
Force Motors
Torrent Pharma
Srikalahasthi Pipes
Pricol
Poddar Pigments
FIEM Ind
based on the current valuation, which all are is a reasonable buy with minimum downside risk? I just wanted to know your view only and not considering it as your recommendation.
Thanks.
I understand your question, but you also need to know the fact that I can't control the prices, or calculate what could be the limit of downside, that a particular company might face.
DeleteWhat I can give you is just brief idea about the company in one sentence which might help you.
1) Indo Count: Riskiest in terms of sector, as well as events that recently occurred with peers. Performance and fundamentals wise, still the best in the sector in my opinion.
2) Lincoln Pharma: Performance will be extremely good in coming few quarters. However, management needs to be proactive in improving their image further in front of investors. That can certainly lead company to new highs in all terms.
3) Salzer Electronics: Not a case of under-valuation. But lots of opportunity as far as its business is concerned, especially with their entry into retail segment, by making a partnership with one of the largest player in its country.
4) Force Motors: One more company, which will keep on performing well. It can be considered slightly undervalued when compared to similar performers, but that comes with a reason. As far as I feel, management is somewhere responsible in not be paying much attention to investors. Rarely I see a communication from management regarding their prospects or investor presentation or anything like that. This could be a mild negative.
5) Torrent Pharma: Decent company with good revenue visibility for few years. No negatives as such.
6) Srikalahasthi Pipes: The company itself is well placed and with good order book which can drive growth. However, the other group companies are not performing well, and it could be one of the negatives if at all any. Most of the other things are looking good.
7) Pricol: Reasonable valuations at present, but plenty of opportunity especially with revival in auto sector. They also have very good presence internationally, which could keep on driving growth. Like the efforts put in by management and their confidence looking at their own company and its future, at least till 2020 as seen in one of the video.
8) Poddar Pigments: Replied to one of the query above.
9) FIEM Ind: Again, no undervaluation at present and much more stable when compared to some others in the sector, but plenty of opportunities ahead considering their product pipeline as well as growth of their major clients.
This is all I could do for you. Hope that helps!!!
Regards.
Thanks for your quick detailed response for my question. You have provided more details than what I was expecting, which will help me doing more research on them before I make a buying decision.
DeleteI am a new member to your blog, but I must say that the quality of analysis and responses to queries are extremely impressive!
Appreciate your good work on this blog and thank you again for sharing your knowledge with us.
Thank you for those kind words!!!
DeleteRespected kunal ji .....
ReplyDeleteKindly suggest five stong fundamental companies with great viability of future earning with multifold returns abilities
I think I m not expecting much from ur side as genius like u.....
Regards
Varun
Hi Varun,
DeleteNo respected, no ji and no genius. You can consider me at same level as you are.
Coming to your question, I hope you understand my limitations in suggesting things like that. Please bear with me for that.
The stocks that I am tracking are anyways listed on this blog.
If you have any queries related to those companies, you can definitely put it over here. But I am not sure on how much will I be able to help you with price specific information.
Regards.
Any thoughts on Banco Products and Nocil?
ReplyDeleteBoth the names are strong fundamentally.
DeleteNocil has got my attention off late, so still trying to study it.
However, positive on Banco.
Dear Kunal,
ReplyDeleteHope you are doing well.God bless you..Is any of this below stocks are in your radar?.any thoughts please
Optiemus Infracom
Veto Switchgears and Cables
Fiberweb India
Regards,
Satheesh
Thanks Satheesh, I am doing good.
DeleteSorry, not tracking any of these. Can't misguide you unnecessarily.
Regards.
Hi Kunal
ReplyDeleteHow about roto pump
Neutral... Not so positive at present...
DeleteHi Kunal, Your views on sree rayalaseema hi-strength hypo ltd. Company as completed the expansion and hoping to see big jump in top and bottom line numbers on coming quarters.
ReplyDeleteNeed to have a detailed look.. Need some time...
DeleteHello Kunal, Whats your view on Magna Electro Casting. Company has posted good results YOY basis
ReplyDeleteSales growth not coming as expected. Manufacturing sector revival will be the key factor. However, profitability is getting better off-late, as well as some improvement seen in balance sheet..
DeleteNeutral currently, might change my views if good performance is repeated.
You can follow this thread:
Deletehttp://forum.valuepickr.com/t/magna-electro-casting-limited/7612
It seems a detailed study is being done by experts...
Since I am not following it, I would request you to rather trust them..
Dear Kunal, Do you know any listed Indian company associated With Tic Tac(R) most likely in pharma space, you or any of our blog reader know this company.Best Regards
ReplyDeleteDear Kunil G
ReplyDeletePlease Suggest and Reply.
studied competent automobile recently opened three 3 nexa showrooms.
total showrooms 14
workshops 12
all baleno brezza etc cars having waiting periods.
Can one buy afresh this stock.
fundamentally also will grow further.
Competent also owns 20 Acres Prime area land in Goa.
maruti has already shown double digit growth rate in july and august and in september also today given highest ever domestic sales growth 25% growth in sales., all of which will also reflected in competent automobile also so eps will also come near rs 30.
ipo price was 70 and now after 20 years after promoters have increased shareholdings to maximum level will start rewarding themselves and shareholders, special dividend, bonus etc all will come as see ceat etc have grown more than 10 times in a short time.
- my target for competent auto is rs 400 for the long term.
Please Suggest Reply.
Harpreet Singh
9034313000.
Auto sector is definitely in a sweet spot atleast for few quarters, considering good monsoon and 7th pay commission. But the sort of business that they are in, I have never studied such a company (I mean the company in that sector.)
DeleteNumber wise, things are looking good, but unsure of what could be the fair value, for this sort of company.
Regards.
Hi Kunal,
ReplyDeleteHope you are doing good.
I would like to thank you for so many good ideas since i started following your blog couple of years back. I am still holding many of the gems and continue reading your updates or replies.
Would like to know your view on Rexnord Electronics.
Kindly let me know when you get time.
Thank you.
Best regards,
jaskirat
Hi Jaskirat,
DeleteThanks for those kind words.
Regarding Rexnord, I definitely like the company, as it has a very decent product pipeline, which could drive growth in coming years, considering the consistent rise in mean temperature across India, along with increase in standard of living.
However, it is still a small org, and which is reflected in company not being able to achieve good margins. But if they keep on growing well, that will keep on incrementing their margins, and hence improving all their return ratios.
For now, 20 P/E is definitely fair, and it cannot be considered a case of undervaluation. But growth in business, and improvement in margins, is the key. However, can't say for how much time, we might have to wait for such assumptions to turn into reality.
Another positive is that they kept a good check on their balance sheet, as it is prone to look bad in some of the small orgs especially in this type of business.
Overall, I like the business, but would prefer to keep a continuous watch on its progress, as small companies could pose an equal risk as reward.
Regards!!!
Thank you Kunal. Appreciate your detailed reply.
DeleteHi Kunal, pls share your views on S P Apparal. Ashish Kacholia scoop up nearly 2% stake in it. I see debt issue but profit growth is superb. Can it be next Kitex?
ReplyDeleteHi Mayur, sorry for the delayed response.
DeleteSomehow, I missed it completely.
For now, we don't have much data to analyse, so too early to predict in my opinion, if it can replicate some of the best!! The business model and target customers are of different category.
I need some time to check its prospectus, before I can comment on possible future growth, as you mentioned.
Some experts picking up good quantity from open market is always a positive.
Any of above stock can we enter at current level
ReplyDeleteSorry Srinivsan, I am not authorized to give that answer..
DeleteYou pick up these names, try to study, and let me know if you have any doubts, I will surely try to help you with that..
But can't disclose recommendation sort of things openly...
Hope you understand!!!
Hi,
ReplyDeleteI have 1200 shares of Indosolar at Rs12. This share is not moving at all. Please let me know if this is a good stock to hold for long term perspective or better to book loss now.
Thanks
Ramakrishna
The business area is good, but things are not looking good at present as far as the company's financial details are concerned. And in any case, these sort of companies will take their own time to stabilize, if at all, in the long run.
DeleteTake a call based on your conviction.
Regards!!!
Hi Kunal, Please share your views on Salzer Q2 results. Do you expect better margins in second half of FY 17?
ReplyDeleteHi Venu Gopal,
DeleteI think the numbers are decent considering lack of revenues from EMS segment, which is probably their highest margin segment.
The good part is that their main business lines are witnessing good growth. EMS business is anyways little random and unpredictable.
Also the development in Three Phase Dry Type Transformer, where the trial is expected to start in November and invoicing from December.
If you go through their latest result presentation, they have detailed very well about their future growth drivers which looks promising.
Regards!!!
wakeup Kunal!!!!...from demonetisation sleep. It is all over now......jokes apart, come back buddy and start sharing thoughts on good stocks - for investor folks.
ReplyDeleteI will only be sharing my thoughts on quarterly results, where in I have discussed about few new names as well:
Deletehttp://fundamentalstockideas.blogspot.com/2016/11/q2-fy17-result-updates.html
Nothing apart from those that I am tracking right now... :)
Will continue to do so after every quarter..