Financial Results & Limited Review for Dec 31, 2013
Link: Click Here
Results Press Release
Link: Click Here
CRISIL Recent Report on Cera Sanitaryware
Link: Click Here
Revenues stood at 160 Cr Vs 128 Cr YoY, growth of 25%.
Net Profit stood at 10.76 Cr Vs 12 Cr YoY, a growth decline of 10% YoY.
EPS at 8.5 Vs 9.48.
For the nine months ended Dec'13 Vs Dec'12
Revenues stands at 445.5 Cr Vs 329.9 Cr, growth of 35%.
Net Profit stands at 32.57 Cr Vs 32.27, growth of 1%.
I am not too far from CRISIL report which suggests that the stock is over-valued currently. But, again, as I said earlier also, it is more because of very bright future speculated ahead, for the company. The growth of 25% might seem reasonable to few, but actually its a big achievement when compared with its peers. The largest sanitaryware manufacturer in India, Hindware Sanitaryware (HSIL), reported a decline in sales this quarter, which confirms the depression in industry and forces investors to put their investment in a good growth story like Cera.
Fundamentally, even CRISIL have rated this stock 4/5.
Few important points derived from Conference Call with Cera found in ResearchBytes:
1) The margins were hit because of higher input cost, which is probably, the story, with all manufacturing companies.
2) As the company started focusing more on faucetware, which is less margin business than sanitaryware, the operating margins are expected to be under pressure for some time. Last year, they achieved operating margin of 17%, which is unlikely this time. It will take time for the company to build on margins. But the good thing is that the company is able to build on revenues because of such business, as it is higher in demand.
3) The company is taking some steps to improve margins by 2 ways
a) By reducing the input cost. They have set up 2 windmills for power generation for starters to achieve that.
b) By increasing the prices across all segments
4) At present, the company has around 10000 dealers across India and they are expecting it to grow by 20% in coming years. As they are providing "Value For Money" solutions to customers, they are not much concerned about competition.
5) The company has a strong market share of 30% in Tier II and Tier III cities, and it is slightly higher in South India.
6) They have confirmed that they are ready to enter in JVs for expansion. Their advertisement expense is close to 5% of total sales.
7) Even in difficult times, the company is expecting the topline to grow by close to 30% in coming 2-3 years.
My Views:
As said, the stock is over-valued, but long term investors can continue to hold. The future is bright here, as seen now. For those, looking for new entries can look to enter in dips, and average out if it goes down further.
When I posted first time about Cera, I gave a very conservative target predicting the difficult times ahead, here:
http://fundamentalstockideas.in/cera-sanitaryware-a-safe-investment/
I stick to that same target for now, and will be upgrading further, if company continues to outperform.
All the best!!!!!
Saturday, February 15, 2014
Saturday, February 8, 2014
Dhanuka Agritech - Q3 Result Updates
Financial Results & Limited Review for Dec 31, 2013
Link: Click Here
Board declares Interim Dividend:
Dhanuka Agritech Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 06, 2014 inter alia, has declared Interim Dividend @100% (Rs. 2 per Equity Share having Face Value of Rs. 2/- each) for the Financial Year 2013-14. The payment date of the Interim Dividend shall be on or before March 07, 2014.
Dhanuka to invest Rs 50cr on new plant; eyes Rs 750cr revenue: (For those who missed the news earlier)
Link: Click Here
Decent numbers given by Dhanuka Agritech in terms of sales, and a very good net profit to go with that.
Revenues stood at 167 Cr Vs 139.6 Cr YoY, a growth of 20%
Net Profit stood at 21.27 Cr Vs 11.68 Cr YoY, a growth of 82%, which was higher than expected.
Hence, EPS stood at 4.25 Vs 2.34 YoY.
For the nine months so far,
Revenues stands at 586.52 Cr Vs 451.13 Cr YoY, a growth of 30%.
Net Profit stands at 70.67 Cr Vs 46.57 Cr YoY, a growth of 51.75%.
EPS for the nine months stands at 14.13 Vs 9.31.
In the link above, as they mentioned, it seems they will be able to achieve 750 Cr revenues this fiscal. Sales of somewhere close to 165 Cr, would help them achieve the figure of 750 Cr for FY14, which doesn't look difficult as of now. To do so, they will have post a growth of 24% in sales, for the next quarter.
The net profit growth this fiscal has been remarkable, and it purely justifies the high P/E ratio for the company, when compared with its peers.
The PAT margin was seen at 12.75 this quarter. With company continuously posting a better growth in net profit than revenues, the margins will continue to impress, and it seems, they should be able to achieve PAT margins of at least 12.5% for FY14, whereas it was close to 11% last year. Once they gain more and more popularity among farmers, it won't be difficult for them to post PAT margins in the range of 15-20%, in future, as they will save plenty required in brand building.
According to company's Managing Director M K Dhanuka: "During this quarter, despite the weak economic environment, we have achieved superior sales growth. Our new products have been enthusiastically received by farmers and continue to gain market share. South and West zones are our key markets and have done well. We are happy that our branding initiatives, including advertisements featuring Amitabh Bachchan as Brand Ambassador have helped us achieve this sustainable growth and we are confident of achieving even better growth in future."
My Views:
Going by the numbers, one would feel that 20% growth in sales, is not that great, but understanding the nature of business they are in, its very difficult to achieve such growth also, in off-season. Still, they have plenty of scope to improve, and their brand building expense, will help them achieve further growth. Good dividend is being paid by the company twice a year, which will bring more stability to stock price.
I personally feel, that, in off-season quarters, people will find plenty of opportunities to enter the stock, as the interest among the traders and investors would be lesser in these quarters. Hence some dips in between are inevitable.
Recommending a hold for those who are already invested, and suggesting a buy on dips strategy for those who are looking for new entry. But always make sure to study things yourself, before taking such decisions. :-)
Link: Click Here
Board declares Interim Dividend:
Dhanuka Agritech Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 06, 2014 inter alia, has declared Interim Dividend @100% (Rs. 2 per Equity Share having Face Value of Rs. 2/- each) for the Financial Year 2013-14. The payment date of the Interim Dividend shall be on or before March 07, 2014.
Dhanuka to invest Rs 50cr on new plant; eyes Rs 750cr revenue: (For those who missed the news earlier)
Link: Click Here
Decent numbers given by Dhanuka Agritech in terms of sales, and a very good net profit to go with that.
Revenues stood at 167 Cr Vs 139.6 Cr YoY, a growth of 20%
Net Profit stood at 21.27 Cr Vs 11.68 Cr YoY, a growth of 82%, which was higher than expected.
Hence, EPS stood at 4.25 Vs 2.34 YoY.
For the nine months so far,
Revenues stands at 586.52 Cr Vs 451.13 Cr YoY, a growth of 30%.
Net Profit stands at 70.67 Cr Vs 46.57 Cr YoY, a growth of 51.75%.
EPS for the nine months stands at 14.13 Vs 9.31.
In the link above, as they mentioned, it seems they will be able to achieve 750 Cr revenues this fiscal. Sales of somewhere close to 165 Cr, would help them achieve the figure of 750 Cr for FY14, which doesn't look difficult as of now. To do so, they will have post a growth of 24% in sales, for the next quarter.
The net profit growth this fiscal has been remarkable, and it purely justifies the high P/E ratio for the company, when compared with its peers.
The PAT margin was seen at 12.75 this quarter. With company continuously posting a better growth in net profit than revenues, the margins will continue to impress, and it seems, they should be able to achieve PAT margins of at least 12.5% for FY14, whereas it was close to 11% last year. Once they gain more and more popularity among farmers, it won't be difficult for them to post PAT margins in the range of 15-20%, in future, as they will save plenty required in brand building.
According to company's Managing Director M K Dhanuka: "During this quarter, despite the weak economic environment, we have achieved superior sales growth. Our new products have been enthusiastically received by farmers and continue to gain market share. South and West zones are our key markets and have done well. We are happy that our branding initiatives, including advertisements featuring Amitabh Bachchan as Brand Ambassador have helped us achieve this sustainable growth and we are confident of achieving even better growth in future."
My Views:
Going by the numbers, one would feel that 20% growth in sales, is not that great, but understanding the nature of business they are in, its very difficult to achieve such growth also, in off-season. Still, they have plenty of scope to improve, and their brand building expense, will help them achieve further growth. Good dividend is being paid by the company twice a year, which will bring more stability to stock price.
I personally feel, that, in off-season quarters, people will find plenty of opportunities to enter the stock, as the interest among the traders and investors would be lesser in these quarters. Hence some dips in between are inevitable.
Recommending a hold for those who are already invested, and suggesting a buy on dips strategy for those who are looking for new entry. But always make sure to study things yourself, before taking such decisions. :-)
Wednesday, February 5, 2014
Suven Life Sciences - Q3 Result Updates
Financial Results with Results Press Release & Limited Review for Dec 31, 2013
Link: Click Here
Communication to investors - Dec 2013
Link: Click Here
Don't see over 40% margins; open to partnerships: Suven
Link: Click Here
Much to the expectations of markets, Suven came out with another strong set of numbers. The reactions on stock after the results suggested that, it was almost expected. More than four-fold jump in net profit was almost a non-event, at least for today.
Revenues stood at 119.42 Cr Vs 62.39 Cr YoY, registering the growth of 92%.
Net Profit stood at 36.43 Cr Vs 7.75 Cr YoY, registering the growth of 370%.
EPS stood at 3.12 from 0.66 YoY.
For the nine months ended in FY14 so far Vs nine months of FY13,
Revenues has grown by 109%.
Net Profit has grown by 403%.
R&D expenditure has grown by 43%.
The growth in profit was a result of prelaunch supplies of 3 products under CRAMS, as per management.
Suven’s major thrust on innovative R&D in Drug Discovery continues with a spending of 35.6 Cr
(9.27% on revenue) for the nine months period ended Dec ’2013.
Suven has 614 product patents for 18 inventions and 35 process patents.
The number of active CRAMS project during the period was 98.
SUVN-502 undergoing phase 1b clinical trial in USA.
In addition to this, the interview with management, as seen in link above, draws a good picture regarding company's future.
My Views:
Not much to say after what is mentioned above. The numbers speaks for itself. The stock was trading around 24, when it was suggested on this blog around Jun '13:
http://fundamentalstockideas.in/few-more-multibaggers-for-long-term/
The management has been able to justify the price rise, and hence the stock is able to stay around all time high levels, even after posting a 200% price jump in past 8 months.
Most importantly, being a small cap company, they have managed to show very strong margins, which is why, they have been highly appreciated by the investors. The R&D expense continues to impress, and forcing us to stay invested with the company for long term.
Recommending a hold on this stock for now, and raising the target of 100 Rs for now.
Link: Click Here
Communication to investors - Dec 2013
Link: Click Here
Don't see over 40% margins; open to partnerships: Suven
Link: Click Here
Much to the expectations of markets, Suven came out with another strong set of numbers. The reactions on stock after the results suggested that, it was almost expected. More than four-fold jump in net profit was almost a non-event, at least for today.
Revenues stood at 119.42 Cr Vs 62.39 Cr YoY, registering the growth of 92%.
Net Profit stood at 36.43 Cr Vs 7.75 Cr YoY, registering the growth of 370%.
EPS stood at 3.12 from 0.66 YoY.
For the nine months ended in FY14 so far Vs nine months of FY13,
Revenues has grown by 109%.
Net Profit has grown by 403%.
R&D expenditure has grown by 43%.
The growth in profit was a result of prelaunch supplies of 3 products under CRAMS, as per management.
Suven’s major thrust on innovative R&D in Drug Discovery continues with a spending of 35.6 Cr
(9.27% on revenue) for the nine months period ended Dec ’2013.
Suven has 614 product patents for 18 inventions and 35 process patents.
The number of active CRAMS project during the period was 98.
SUVN-502 undergoing phase 1b clinical trial in USA.
In addition to this, the interview with management, as seen in link above, draws a good picture regarding company's future.
My Views:
Not much to say after what is mentioned above. The numbers speaks for itself. The stock was trading around 24, when it was suggested on this blog around Jun '13:
http://fundamentalstockideas.in/few-more-multibaggers-for-long-term/
The management has been able to justify the price rise, and hence the stock is able to stay around all time high levels, even after posting a 200% price jump in past 8 months.
Most importantly, being a small cap company, they have managed to show very strong margins, which is why, they have been highly appreciated by the investors. The R&D expense continues to impress, and forcing us to stay invested with the company for long term.
Recommending a hold on this stock for now, and raising the target of 100 Rs for now.
Tuesday, February 4, 2014
Can Fin Homes - Q3 Result Updates
Financial Results & Limited Review for Dec 31 2013
Link: Click Here
The consistent performance of the company continues with yet another strong set of numbers. The story of growing 10% every quarter continues, which makes a 40-50% growth YoY, which is more than appreciable for a company involved in housing finance.
At the start of this fiscal, company had about 69 branches across India. The management has plans to achieve 85 by the end of this fiscal. The additional branch network is expected to provide increased market penetration to cater to the evolving needs of our existing customers and tapping a growing potential customer base in tier II and III towns in the country.
Revenues stood at 151.7 Cr Vs 102.8 Cr YoY, indicating a growth of 48%.
Net Profit stood at 20.3 Cr Vs 12.6 Cr YoY, indicating a growth of 61%.
EPS stood at 9.9 Vs 6.2 YoY.
Primary reason for growth was increase in net interest income which was up by 38%, and flat expense incurred by the company in this quarter.
My Views:
Once again, we have a company which seems to have a very bright future. But what we, as an investors are concerned with is the stock price movement. Similar to Dewan Housing, there is a huge upside possible, but certainly can't be guaranteed, because we are not the policy makers in this country. Government and RBI policy will continue to guide their prices for now. Fundamentally, both the companies, are very strong, and can be held for long term, but not sure of the returns one can get, it may be huge, it may be flat.
Not looking in that direction, I think the fair value of the company now seems to be around 225 considering its peers. Earlier, when I posted about the stock in June 13, I gave a target of 200
http://fundamentalstockideas.in/few-more-multibaggers-for-long-term/
Upgrading it to 225 as of now, and of course, this is not considering any severe policy changes in the country.
Investors have to understand the associated risk before investing. Rest is one's own decision.
Link: Click Here
The consistent performance of the company continues with yet another strong set of numbers. The story of growing 10% every quarter continues, which makes a 40-50% growth YoY, which is more than appreciable for a company involved in housing finance.
At the start of this fiscal, company had about 69 branches across India. The management has plans to achieve 85 by the end of this fiscal. The additional branch network is expected to provide increased market penetration to cater to the evolving needs of our existing customers and tapping a growing potential customer base in tier II and III towns in the country.
Revenues stood at 151.7 Cr Vs 102.8 Cr YoY, indicating a growth of 48%.
Net Profit stood at 20.3 Cr Vs 12.6 Cr YoY, indicating a growth of 61%.
EPS stood at 9.9 Vs 6.2 YoY.
Primary reason for growth was increase in net interest income which was up by 38%, and flat expense incurred by the company in this quarter.
My Views:
Once again, we have a company which seems to have a very bright future. But what we, as an investors are concerned with is the stock price movement. Similar to Dewan Housing, there is a huge upside possible, but certainly can't be guaranteed, because we are not the policy makers in this country. Government and RBI policy will continue to guide their prices for now. Fundamentally, both the companies, are very strong, and can be held for long term, but not sure of the returns one can get, it may be huge, it may be flat.
Not looking in that direction, I think the fair value of the company now seems to be around 225 considering its peers. Earlier, when I posted about the stock in June 13, I gave a target of 200
http://fundamentalstockideas.in/few-more-multibaggers-for-long-term/
Upgrading it to 225 as of now, and of course, this is not considering any severe policy changes in the country.
Investors have to understand the associated risk before investing. Rest is one's own decision.
Tuesday, January 28, 2014
Granules India - Q3 Result Updates
Financial Results with Results Press Release & Limited Review for Dec 31, 2013
Link: Click Here
As expected, strong set of numbers delivered by Granules India, with a huge growth in net profit, which was the reason for stock reaching these 52 weeks high levels and sustaining there.
On Standalone basis,
Revenues stands at 262 Cr Vs 173 Cr YoY, which is a growth of 50.5%.
Net Profit stands at 23 Cr Vs 5.4 Cr YoY, which is a growth of almost 325%.
EPS for the first time, goes above 10, and is precisely at 11.39.
On Consolidated basis,
Revenues stands at 284 Cr Vs 195 Cr YoY, which is a growth of 46%.
Net Profit stands at 21.8 Cr Vs 5.8 Cr YoY, which is a growth of almost 275%.
EPS works out to be 10.8.
So far this year, the company has reported sales of 778 Cr. Looking at this number, and with good expectation in coming quarter as well, I expect the company to post annual sales of close to 1090 Cr for the full year, which will be above their target of 1000 Cr. In terms of profit, I expect it to be somewhere around 75 Cr, which again, would be way above their expectations.
EPS for the full year will be around 36, which means, at current market price of aout 220 Rs, it is trading at a P/E multiple of 6.
Looking at numbers, its tough to see that consolidated numbers are slightly sub-dued when compared with standalone numbers in terms of growth and margins. But Granules, being a company which is generating 90% of its revenues from standalone unit only, the performance of subsidiaries hardly matters, as of now. It will take some time for subsidiaries to perform well, and contribute to increasing sales and profit figures.
The company still needs to focus on improving margins. Even with huge growth in net profit, they are still lagging when it comes to net profit margins, as compared to their peers. So I am expecting further such growths in net profit going ahead. If that happens, there will be a huge re-rating on the counter. If you check the numbers of Ajanta Pharma, you will find that they are having similar sales figure, but net profit of Ajanta is 3 times the net profit of Granules, this quarter. It used to be around 5-6 times that of Granules earlier. Now that Granules has started posting good net profit, it is going in right direction.
My Views:
Most of things are clear from stats that I mentioned above, and I, because of that, continue to be very positive on the stock with a longer term view. With result just announced, and with highly volatile market conditions, you can expect the stock to trade violently on either side for few days. But those who are seriously long term investors, can invest around any levels from 200-250, and hold it, till it becomes a 5000 Cr revenue generating organization as promised by management, someday. :-)
Obviously, we wont do that blindly. We will stay updated with every news about the company and our actions will follow accordingly.
GRANULES INDIA - Redefining Partnership
httpv://www.youtube.com/watch?v=NDSX9SvcWdQ
Link: Click Here
As expected, strong set of numbers delivered by Granules India, with a huge growth in net profit, which was the reason for stock reaching these 52 weeks high levels and sustaining there.
On Standalone basis,
Revenues stands at 262 Cr Vs 173 Cr YoY, which is a growth of 50.5%.
Net Profit stands at 23 Cr Vs 5.4 Cr YoY, which is a growth of almost 325%.
EPS for the first time, goes above 10, and is precisely at 11.39.
On Consolidated basis,
Revenues stands at 284 Cr Vs 195 Cr YoY, which is a growth of 46%.
Net Profit stands at 21.8 Cr Vs 5.8 Cr YoY, which is a growth of almost 275%.
EPS works out to be 10.8.
So far this year, the company has reported sales of 778 Cr. Looking at this number, and with good expectation in coming quarter as well, I expect the company to post annual sales of close to 1090 Cr for the full year, which will be above their target of 1000 Cr. In terms of profit, I expect it to be somewhere around 75 Cr, which again, would be way above their expectations.
EPS for the full year will be around 36, which means, at current market price of aout 220 Rs, it is trading at a P/E multiple of 6.
Looking at numbers, its tough to see that consolidated numbers are slightly sub-dued when compared with standalone numbers in terms of growth and margins. But Granules, being a company which is generating 90% of its revenues from standalone unit only, the performance of subsidiaries hardly matters, as of now. It will take some time for subsidiaries to perform well, and contribute to increasing sales and profit figures.
The company still needs to focus on improving margins. Even with huge growth in net profit, they are still lagging when it comes to net profit margins, as compared to their peers. So I am expecting further such growths in net profit going ahead. If that happens, there will be a huge re-rating on the counter. If you check the numbers of Ajanta Pharma, you will find that they are having similar sales figure, but net profit of Ajanta is 3 times the net profit of Granules, this quarter. It used to be around 5-6 times that of Granules earlier. Now that Granules has started posting good net profit, it is going in right direction.
My Views:
Most of things are clear from stats that I mentioned above, and I, because of that, continue to be very positive on the stock with a longer term view. With result just announced, and with highly volatile market conditions, you can expect the stock to trade violently on either side for few days. But those who are seriously long term investors, can invest around any levels from 200-250, and hold it, till it becomes a 5000 Cr revenue generating organization as promised by management, someday. :-)
Obviously, we wont do that blindly. We will stay updated with every news about the company and our actions will follow accordingly.
GRANULES INDIA - Redefining Partnership
httpv://www.youtube.com/watch?v=NDSX9SvcWdQ
Ajanta Pharma - Q3 Result Updates
Financial Results & Results Press Release for Dec 31, 2013
Link: Click Here
Another strong set of numbers from Ajanta Pharma. The company has been consistently doing well over last few quarters, and now it seems they have made a habit of declaring net profit growth of more than 50% YoY.
Revenues stands at 301 Cr from 229 Cr last year, which means a growth of 31% in sales.
Net Profit stands at 62 Cr from 33 Cr last year, which means a growth of 92% in profits.
EPS stands at 17.75 for this quarter.
Exports contributed to 65% of their total sales.
The company is looking good to post an annual revenues of close to 1130 Cr, a growth of 35-40% over last year.
Full year EPS is expected to be around 60, which means, company, right now is trading at a P/E of 15.
The company continues to increase their R&D expense, which is encouraging.
R&D expense stands at 39 Cr against 28 Cr last year.
It also continues to file more and more ANDA with US FDA. This year, they have already filed 8 ANDA, with 4 of them in this quarter itself. The total stands at 22, out of which 20 are pending for Approval.
In this quarter, Company has filed 109 product registration dossiers in emerging markets. They already have over 1400 product registrations, and around 1380 product under registration process.
One of the major highlight was their growth in domestic markets.
They generated 98 Cr from domestic markets this quarter, a growth of 38% YoY.
As per IMS MAT Dec 2013, Ajanta has improved its overall ranking to 40th rank in Indian Pharmaceutical Market.
Company has launched 8 more products this quarter, hence making a total of 19 in FY14 so far.
My Views:
The growth story so far, has been excellent. But many investors are now asking whether such growth is sustainable or not. I am still positive, but now, only with an intention to get good returns over my investment. Multi-bagger returns from here on looks slightly difficult. The company already has a market capitalization of 3200 Cr, which is slightly higher as of now, but it can prove to be less, if growth continues in same fashion going ahead.
The gain of 300% last year, was a big surprise, but with strong results coming every quarter, the company certainly has not failed in justifying the price rise so far.
I am still awaiting a word on their 2 new plants in Gujarat.
I would recommend a partial profit booking around 1000 for those who are invested since last 1 year, as it is always a good idea, to book some profits time and again, even if company is continuously performing well. Hold on to rest of the quantity, with a hope that new products will continue to bring more revenues for the company, and initiation of 2 new plants, will add to that.
Link: Click Here
Another strong set of numbers from Ajanta Pharma. The company has been consistently doing well over last few quarters, and now it seems they have made a habit of declaring net profit growth of more than 50% YoY.
Revenues stands at 301 Cr from 229 Cr last year, which means a growth of 31% in sales.
Net Profit stands at 62 Cr from 33 Cr last year, which means a growth of 92% in profits.
EPS stands at 17.75 for this quarter.
Exports contributed to 65% of their total sales.
The company is looking good to post an annual revenues of close to 1130 Cr, a growth of 35-40% over last year.
Full year EPS is expected to be around 60, which means, company, right now is trading at a P/E of 15.
The company continues to increase their R&D expense, which is encouraging.
R&D expense stands at 39 Cr against 28 Cr last year.
It also continues to file more and more ANDA with US FDA. This year, they have already filed 8 ANDA, with 4 of them in this quarter itself. The total stands at 22, out of which 20 are pending for Approval.
In this quarter, Company has filed 109 product registration dossiers in emerging markets. They already have over 1400 product registrations, and around 1380 product under registration process.
One of the major highlight was their growth in domestic markets.
They generated 98 Cr from domestic markets this quarter, a growth of 38% YoY.
As per IMS MAT Dec 2013, Ajanta has improved its overall ranking to 40th rank in Indian Pharmaceutical Market.
Company has launched 8 more products this quarter, hence making a total of 19 in FY14 so far.
My Views:
The growth story so far, has been excellent. But many investors are now asking whether such growth is sustainable or not. I am still positive, but now, only with an intention to get good returns over my investment. Multi-bagger returns from here on looks slightly difficult. The company already has a market capitalization of 3200 Cr, which is slightly higher as of now, but it can prove to be less, if growth continues in same fashion going ahead.
The gain of 300% last year, was a big surprise, but with strong results coming every quarter, the company certainly has not failed in justifying the price rise so far.
I am still awaiting a word on their 2 new plants in Gujarat.
I would recommend a partial profit booking around 1000 for those who are invested since last 1 year, as it is always a good idea, to book some profits time and again, even if company is continuously performing well. Hold on to rest of the quantity, with a hope that new products will continue to bring more revenues for the company, and initiation of 2 new plants, will add to that.
Tuesday, January 21, 2014
Dewan Housing - Q3 Result Updates
Financial Results & Limited Review for Dec 31, 2013
Link: Click Here
Board declares Interim Dividend:
Dewan Housing Finance Corporation Ltd has informed that the Board of Directors of the Company at its meeting held on January 20, 2014, inter alia, have declared an interim dividend for the financial year 2013-2014 of Rs. 3/- per share i.e. 30% on equity shares of Rs. 10/- each fully paid up.
See 20-22% growth rate going ahead: Kapil Wadhawan, Dewan Housing
Link: Click Here
So, we kick off the earning season for the quarter starting wih Dewan Housing.
Strong set of numbers declared by the company, especially, when we compare it with Gruh Finance, that declared its numbers last thursday.
Revenues stood at 1301 Cr from 840 Cr in same quarter last year, a growth of 55%.
Net Profit stood at 138.39 Cr from 91.24 Cr last year, a growth of 52%.
Housing Loan sanctioned amounted to 5938.55 Cr from 3922.13 Cr last year, a growth of 51%.
Disbursements went up to 4030.23 Cr as against 2983.32 Cr, showing a growth of 35%.
For Gruh Finance, the growth in above terms were 31%, 25%, 31% and 22% respectively.
The tier two and tier three markets still continue to be extremely strong for DHFL and continue to give out consistent margins. So the company is on track after the completion of nine months, in terms of overall earnings for the entire financial year.
My Views:
Based on the numbers, the stock continues to look cheaper even at current market price of 215 Rs. But, as you know, the biggest challenge is the sector, in which it is operating. Every RBI policy on interest rates, will have an impact on the stock price, no matter what the fundamentals of the company are. Hence, one has to be very careful while making an entry in such stocks. He/She has to be ready, to accept the risk, if there is any downfall because of certain government policy.
The stock was suggested in June 13, and the target given was 250 Rs.
http://fundamentalstockideas.in/few-more-multibaggers-for-long-term/
For now, I stick to that target, because we are not sure on what sort of policies are going to be implemented tomorrow.
Recommending a hold for those who already bought, and would advice new entrants to understand the risk well before making any investments now, as it has appreciated more than 100% since Sept 12. With a P/E ratio of 5.22, book value of 252 Rs per share, and market cap of 2749 Cr, I feel it is slightly under-valued.
Rest is ones own decision. :-)
Link: Click Here
Board declares Interim Dividend:
Dewan Housing Finance Corporation Ltd has informed that the Board of Directors of the Company at its meeting held on January 20, 2014, inter alia, have declared an interim dividend for the financial year 2013-2014 of Rs. 3/- per share i.e. 30% on equity shares of Rs. 10/- each fully paid up.
See 20-22% growth rate going ahead: Kapil Wadhawan, Dewan Housing
Link: Click Here
So, we kick off the earning season for the quarter starting wih Dewan Housing.
Strong set of numbers declared by the company, especially, when we compare it with Gruh Finance, that declared its numbers last thursday.
Revenues stood at 1301 Cr from 840 Cr in same quarter last year, a growth of 55%.
Net Profit stood at 138.39 Cr from 91.24 Cr last year, a growth of 52%.
Housing Loan sanctioned amounted to 5938.55 Cr from 3922.13 Cr last year, a growth of 51%.
Disbursements went up to 4030.23 Cr as against 2983.32 Cr, showing a growth of 35%.
For Gruh Finance, the growth in above terms were 31%, 25%, 31% and 22% respectively.
The tier two and tier three markets still continue to be extremely strong for DHFL and continue to give out consistent margins. So the company is on track after the completion of nine months, in terms of overall earnings for the entire financial year.
My Views:
Based on the numbers, the stock continues to look cheaper even at current market price of 215 Rs. But, as you know, the biggest challenge is the sector, in which it is operating. Every RBI policy on interest rates, will have an impact on the stock price, no matter what the fundamentals of the company are. Hence, one has to be very careful while making an entry in such stocks. He/She has to be ready, to accept the risk, if there is any downfall because of certain government policy.
The stock was suggested in June 13, and the target given was 250 Rs.
http://fundamentalstockideas.in/few-more-multibaggers-for-long-term/
For now, I stick to that target, because we are not sure on what sort of policies are going to be implemented tomorrow.
Recommending a hold for those who already bought, and would advice new entrants to understand the risk well before making any investments now, as it has appreciated more than 100% since Sept 12. With a P/E ratio of 5.22, book value of 252 Rs per share, and market cap of 2749 Cr, I feel it is slightly under-valued.
Rest is ones own decision. :-)
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