Ajanta Pharma - Q4 FY'14 Result Updates

Financial Results & Results Press Release for March 31, 2014
Link: Click Here

Board recommends Dividend:
Ajanta Pharma Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 05, 2014, inter alia, have recommended dividend @ Rs. 10/- per equity share on the face value of Rs. 5/- each, subject to approval of shareholders at the ensuing Annual General Meeting to be held in 2014.

Independent Press Release PDF
Link: Click Here

New Investor Presentation
Link: Click Here

Used few good words to describe the performance of the company some 21 months ago, when I started putting my views on this blog. Then had to use more such words, as the performance continued to impress every quarter. I thought at some point of time, after few such quarters, the numbers will stabilize, and then, finally, I will have to rest my words on praising the company.
But it seems a never ending process....
Sorry no new words left this time.. :)

Coming straight to numbers,
For Q4 FY'14,
Revenues stood at 311 Cr vs 249 Cr yoy, growth of 25%.
Net Profit stood at 70 Cr vs 29 Cr yoy, growth of 159%.
EPS stood at 19.94 vs 7.71 yoy.

For the full year FY'14 vs FY'13,
Revenues stood at 1110 Cr vs 839 Cr, growth of 32%.
Net Profit stood at 221 Cr vs 101 Cr, growth of 118%.
EPS stood at 62.83 vs 28.78.

The consolidated numbers are having similar ratios, so not much to mention over there.
Consolidated EPS for the full year FY'14, stood at 66.54.

My Views:
Lots of positives to be taken from the Press Release as well as New Investor Presentation. The company has filed one more ANDA with US FDA, which takes the total tally of ANDA pending for approval to 21. The management expects 2-3 ANDA approval in FY15. 24 new products were launched in FY14, out of which 5 were in Q4. R&D expense stood at 50 Cr vs 37 Cr last year, which is highly encouraging.
The biggest positive is the growth in India sales. In Q4, company showed 33% growth in India sales, and for the full year, it stood at 32%. Such growth in India & other emerging markets will reduce the dependency of profit on dollar rupee fluctuations.
The only issue is with the update on their upcoming facilities in Gujarat. According to previous presentation, it was expected to be commercialized in Q1 FY'15, whereas in the latest presentation, it is being shown as Q1 FY'16. We will have to get clarity on that from the management.

Coming to stock price, I don't think, Rs fluctuation will make that big a difference going ahead, as their sales in emerging markets is growing very strong, especially in India. At CMP, the stock is trading at a P/E multiple of 16, which is fair. But the company should continue the growth in bottom line going ahead. Hence stock price appreciation should continue in my opinion, but can't guarantee the pace of moving ahead, as it has appreciated tremendously in past 2 years.
Recommending a hold for current investors, and those with good patience can look for new entry at current levels also, using every dips to buy more. Upgrading the target price to 1500 now, keeping long term view in mind.
All the best!!!

Can Fin Homes & Dewan Housing - Q4 FY'14 Result Updates

CAN FIN HOMES

Financial Results & Auditors Report for March 31, 2014
Link: Click Here

Board recommends Dividend:
Can Fin Homes Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 26, 2014, inter alia, have recommended a dividend at Rs. 6.50/- per share (face value Rs. 10/- per equity share) for the financial year 2013-14, to be declared at the 27th annual general meeting of the Company to be held on or before September 30, 2014.

New Investor Presentation:
Link: Click Here

For Q4 FY'14,
Total Income stood at 161.67 Cr Vs 113.23 Cr yoy, growth of 43%.
Net Profit stood at 20.11 Cr Vs 15.54 Cr yoy, growth of 29%
EPS stood at 9.8 Vs 7.6

For full year FY'14 Vs FY'13
Total Income stood at 578 Cr Vs 392.7 Cr, growth of 47%.
Net Profit stood at 75.71 Cr Vs 54.12 Cr, growth of 40%.
EPS stood at 37 Vs 26.4.

My Views:
The growth continues to be stronger on account of higher net interest income. The loan book of the company has grown by 46% as seen in new investor presentation, and it is expected to grow stronger going ahead. The management is very confident about coming year, because of further addition of new branches, from existing 83 branches in 15+ states of the country.
With EPS of 37, the company is still looking cheaper, when compared with its peers in terms of P/E ratio. Not considering the ill-effects of election outcome, I change my target to 300 now, from earlier target of 200, given here:
http://fundamentalstockideas.blogspot.in/2013/06/few-more-multibaggers-for-long-term.html


DEWAN HOUSING

Financial Results for March 31, 2014
Link: Click Here

Board recommend Final Dividend & Special Dividend:
Dewan Housing Finance Corporation Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 30, 2014, has recommended dividend to be paid out of current year profits @ Rs. 2/- per equity share to the equity shareholders as final dividend along with additional special 30th Anniversary celebration dividend @ Rs. 3/- per equity share, aggregating to Rs. 8/-, per equity share for the year 2013-14.

Latest Investor Presentation (Jan '14)
Link: Click Here

For Q4 FY'14,
Total Income stood at 1417.08 Cr Vs 1716.6 Cr yoy, decline of 17%.
Net Profit stood at 141.17 Cr Vs 196.63 Cr yoy, decline of 28%.
EPS stood at 11 Vs 16.77.

For the full year FY'14 Vs FY'13,
Total Income stood at 4969.68 Cr Vs 4078.94 Cr, growth of  22%.
Net Profit stood at 529 Cr Vs 451.85 Cr, growth of 17%.
EPS stood at 41.23 Vs 38.47.

My Views:
The numbers for this quarter were disappointing, but for the full year, the growth of 22% is not that bad. In the year, the company showed 29% increase in sanction of housing loans. As you all know, we entered the script just based on sheer undervaluation, rather then preferring the sector. In that sense, the script is still slightly cheaper, but being a mid-cap, the expectations are always higher. Hence you are bound to see, ups and downs, if the numbers don't turn out to be favorable. It would not be a wrong move, to do some profit booking, as it is already trading almost 50% higher from the recommended price, seen in link above. As said earlier also, if you are ready to face challenges from election outcome, one can still continue to hold remaining shares, at this price. Looking at this quarter numbers, I would like to change the earlier target of 250 to 275 now for long term.
For safe players, new entry in both the stocks, is not suggested before election outcome.

Cera Sanitaryware - Q4 FY'14 Result Updates

Financial Results for March 31, 2014
Link: Click Here

Board recommends Dividend:
Cera Sanitaryware Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 25, 2014, inter alia, has transacted the following:
-Recommended a dividend of Rs. 5/- (100%) per fully paid-up equity Share of Rs. 5/ each.
-Re-appointed Shri Vikram Somany as Chairman and Managing Director for a period of 3 years w.e.f. July 01, 2014.

Results Press Release
Link: Click Here

The growth shown by Cera Sanitaryware is almost unbelievable, considering the sector it operates it.
Commenting on above statement, Vikram Somany, CMD, Cera Sanitaryware, said that "Cera has once again demonstrated that it enjoys overwhelming customers' preference and support. This is evident from the fact that our growth has been achieved in spite of market witnessing signs of slow down".

According to Business Line, Cera has maintained key position in the country’s sanitaryware market, which has a total size of Rs 2,700 crore with a market share of 23% from 18% earlier.
According to management, after success on market acceptability with Sanitaryware and faucets, Cera has now forayed into tiles more aggressively. The company offers tiles consist of HD digital wall tiles with matching floor tiles and also digital polished glazed vitrified tiles.
Broking houses see promising future for the company. An Angel Broking report on Cera after the results announcement said, “Considering the low-penetration level of sanitation in India, change in lifestyle of the people, increasing nuclear families and real estate growth; the sanitaryware industry growth is on an uptrend. Thus, with increasing awareness about the brand ‘Cera’ and its recently expanded capacity, Cera is well placed to benefit from the growth in the sanitaryware industry.” 

Talking about numbers,

For Q4 FY'14,
Revenues stood at 218.19 Cr Vs 154.56 Cr YoY, a growth of 41%.
Net Profit stood at 19.34 Cr Vs 13.93 Cr YoY, a growth of 39%.
EPS at 15.28 Vs 11.01.

For the full year FY'14 against FY'13,
Revenues stood at 663.69 Cr Vs 487.87 Cr, a growth of  36%.
Net Profit stood at 51.91 Cr Vs 46.21 Cr, a growth of 12%.
EPS at 41.02 Vs 36.51.

My Views:
Sales growth of more than 40% in a sector, where other major companies are struggling to show positive growth, is a big achievement. The net profit this quarter is highly satisfactory, unlike last quarter, where it showed a decline, compared to previous year. With EPS of 41, the stock is trading at a P/E multiple of 21, which is higher than industry P/E. But the way, company is growing, it definitely deserves whatever the markets has to offer.
In the notes section of result, the company has mentioned that "As part of Green Initiative, the company has decided to install Solar Power Energy at Kadi for Captive use." Good to see that company is also concerned about the environment. Its a matter of pride being a shareholder of such a company.
Despite being an expensive stock, I would recommend a hold at current market price, for long term.
Investors with good patience and longer term view, can even make fresh entry at current levels, and use every dips to buy more.
Not changing my initial recommended target of 1000 Rs for now.

Granules India - Q4 FY'14 Result Updates

Financial Results for March 31, 2014 
Link: Click Here

Board recommends Final Dividend:
Granules India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 24, 2014, inter alia, has recommended a final dividend of Rs. 3.50 per share representing 35% of Paid Up Capital for the financial year 2013-14.

Press Release:
Link: Click Here 

New Investor Presentation:
Link: Click Here

The stellar performance continues for Granules India with company clocking highest ever revenues once again, and it seems that the company met all the expectations from the utility of capacity expansion at Gagillapur facility, which commenced a year ago.
The company during Jun '13 mentioned that, with expansion, they are expecting the sales of 1000 Cr for the full year, and they almost got 1100 Cr.
The R&D expense has almost gone up by 200%, which further enhances the confidence about the future of the company.

Last year, Finished dosages accounted for minimum sales, among API, PFI and itself, and this year, they were able to turn it around with finished dosages accounting for maximum sales out of 3. Its good for the company, as finished dosages is the highest margin business among the 3. Hence, if it continues to improve, we might see further growth in net profit compared to sales.
The company is confident of improving utilization further in future, as they did this year.

Speaking of consolidated numbers,
For Q4 FY'14,
Revenues stood at 317 Cr Vs 204 Cr, registering a growth of 55%.
Net Profit stood at 23.62 Cr Vs 12.41 Cr, registering a growth of 90%.
EPS stood at 11.68 Vs 6.18

For full year FY'14,
Revenues stood at 1096 Cr Vs 764 Cr, a growth of 46%.
Net Profit stood at 75.23 Cr Vs 32.57 Cr, a growth of 131%.
EPS stood at 37.2 Vs 16.21

My Views:
The company was surely able to justify the severe rise in stock price over last 1 year from 100 to 310 levels. But it seems that the story is not ending here. If the results continue to impress in same way, we might see another such journey in times to come. With annual EPS of 37, the stock is still trading at a P/E below 10, even after more than 200% rise in last 1 year. That speaks largely about the undervaluation still existing in the stock price.
With management looking confident of achieving similar growth going ahead, it raises the confidence level of investors in the company.
Still won't be giving any specific target on the counter, but looks like, one can continue to buy/hold for long term. I will keep on posting further updates if any.

Note:
Recommendation made above is without considering the hazardous impact that election outcome can have on stock markets. So, one has to take his/her own decision based on ones own belief.
All the best!!!!

Plastiblends India - Merging Ideas And Surging Ahead

Plastiblends India Limited is India’s largest manufacturer and exporter of Colour & Additive Master Batches and Thermoplastic Compounds for the Plastic Processing Industry.
Masterbatch is a solid or liquid additive for plastic used for coloring plastics (color masterbatch) or imparting other properties to plastics (additive masterbatch)

Plastiblends is headquartered in Mumbai. The company's world class manufacturing facilities are located at Daman, Gujarat & Roorkee, Uttarakhand with an annual manufacturing capacity over 75,000 MT. The company produces masterbatches for Polyolefins including BOPP, PET, PBT, ABS, HIPS & EVA.

The company exports to more than 40 countries worldwide and have a strong foot hold in the global market.
The company's production capacity has grown more than 10 times since the year 2000.

Serving Markets:
1) Agriculture
2) Household Appliances
3) Automation & Transportation Industry
4) Electrical, Electronics & Telecommunication
5) Healthcare & Pharma
6) Packaging
7) Textiles
8) Wire & Cables

The Masterbatch market in India is expected to grow at a CAGR of 23% till 2018, which means, the good performers in the sector have plenty of scope to improve their growth.
Link: Click Here

The company is looking to double its capacity by 2015. Along with some nominal expansions that will take place at its existing plants that are situated in Daman and Roorkee, the company is looking forward to set up a new manufacturing unit.
Link: Click Here

Speaking of numbers, the company has been growing steadily over the years, and this year, has not been an exception. The company has grown with a CAGR of 20% in sales, from 2009 to 2013. The profits growth has been varying because of instability of production cost over the past few years. The situation is getting better off-late.
For the first nine-months ended Dec'13, the company has shown,
Sales growth of 16% and Net Profit growth of 84%.
The company has consistently paid good dividend, and is expected to continue the trend.

My Views:
Again historically, March quarters have been good for the company, and considering a moderate growth of 16% again for this quarter, the company should post a total sales of 132 Cr, which will take their annual sales to 475 Cr, from 408 Cr last year. We might see a big jump in net profit for the full year, where I am expecting the company to end the year, with net profit figure of 26 Cr Vs 15 Cr posted last year. That will take their full year EPS to 20. Taking that figure into mind, the company is trading at a P/E multiple of 6 as against industry P/E of 22. Historically, if you see, the stock has never traded above P/E multiple of 8. So, even if we consider the P/E of 8, then stock should be around 160 levels.
Important thing to note here is that, since Aug'13, the stock has already jumped more than 100%, hence one can expect sub-dued stock performance for some time, or even mild downside, we don't know, but again, taking all above factors into consideration, stock is looking very good for long term right now.

Note:
As we all know, General Election 2014 is about to commence from 7th April, and results are expected to be announced on 16th May. The outcome of elections may have hazardous impact on stock markets, if results don't turn out to be favorable. So, if you are a very safe player, its better advised to enter post result declaration, in any of the recent stocks discussed here. If you have some risk appetite, you can invest in these testing times, and wait for things to settle down after elections, if something favorable doesn't happen.
All the best!!!!

Manjushree Technopack - Packing The FMCG, Food & Pharma World

One Of The Better Company In One Of The Worse Sector!!!!!!

Founded in 1977 by Vimal Kedia, Manjushree started as a small umbrella manufacturing unit in Guwahati, Assam and thereafter in 1984 forayed into manufacturing of flexible plastic packaging. Manjushree came up with its first IPO in 1995 in order to raise funds for establishing its PET bottle manufacturing unit in Bangalore.  Today, Manjushree is the largest converter of PET and Preforms in India with an installed capacity of 80,000 MTPA and caters to the packaging needs of a large section of the FMCG fraternity. Besides PET, Manjushree also manufactures Oxygen Barrier Retortable Multilayer and Stretch Blow Moulded bottles - both of which were brought into India for the first time by Manjushree.

Manjushree has built expertise in all kinds of rigid plastic packaging solutions, including – PET, PP, Multilayer-
barrier containers and PET preforms that utilize European, Japanese and Canadian technologies. In the last year,
it has commissioned two more state of the art Husky System for PET Preforms and four ASB blows moulding machines to manufacture PET bottles for the beverage and bottled water industry.

Products:
1) PET - Jars and Bottles
2) PP (Poly Propelene) - Jars and Bottles
3) Multilayer Barrier Containers
4) Hot Fill PET Bottles
5) Other Moulded Products

Industries Served By Manjushree Technopack:
- Tea & Coffee - Pharmaceuticals - Confectionery - Fruit juices - Aerated Beverages
- Liquor - Sauces & Ketchups - Household cleaners - Pickles - Health Supplements
- Mineral water - Promotional items - Spices

The Packaging Industry is considered to be one of the world’s largest diversified sector and is ranked 9th
amongst the top 10 industry sectors in the world. The total size of the Indian packaging industry is about $25 billion with an annual growth rate of about 13-15% per annum.

Manjushree has forayed into new segments to diversify like liquor, personal care, dairy and edible oils. Companies such as United Spirits, Reckitt Benckiser, Bacardi, Diageo and Big cola for PET bottles and PET Preforms business have been added to the company’s portfolio in the past few quarters.

Find entire list of clients here:
Link: Click Here

According to management, the company stepped up promotional activities in international markets through active participation in various international exhibitions and conferences. The latest manufacturing facility in Bidadi that is set up with an investment of Rs. 150 crore has boosted Manjushree’s current production capacity to 80,000 million tonne per annum. It is a LEEDs certified eco-friednly manufacturing plant with cutting-edge automation and modernization.
Going strong in line with company’s expansion plans, the construction of the fourth unit, which is a green-field project in Harohall Industrial Area in Bangalore is underway and is expected to be completed by March 2014.
Moving beyond FMCG and liquor, Manjushree has made significant inroads into sectors such as dairy, agro-chemicals and specialized pharma segment - nutracenticals.

Moving onto numbers now,
Over the past 5 years, company has been growing at a CAGR of 27.5% in sales, and 26.3% in net profit.
For the first 9 months ending Dec '13,
The Revenues have grown by 22% YoY, and Net Profit has declined by 14% YoY.
The numbers are muted mainly because of higher input cost aided by Rs depreciation.
The good thing is that the exports are growing significantly over last 1 year, and the company is taking steps to improve it further.
In times to come, I think the profits will go back to normal, and sales, on the other side, will continue to impress, hence future looks bright. But that can take its own time.

Major Risks:
The company debt levels are a bit on the higher side, but that is because of the business model of the company, justified by CRISIL below. Finance cost is very high off-late.

According to CRISIL, Manjushree will maintain steady revenue growth, supported by healthy demand from its end-user segments, and its established position in the plastic packaging industry, over the medium term. Manjushree's operating profitability is expected to be sustained at healthy levels of 19-21% over the same period. The company's financial risk profile is also expected to remain adequate, supported by steady cash generation; however its gearing levels, will continue to remain at average levels despite some moderation (from levels of 1.8 times at March 31, 2013), due to continuing partly debt funded capital expenditure (capex) and working capital intensive nature of operations.

My Views:
At CMP of 155, the stock is trading at P/E ratio of 8.7 based on Mar '13 numbers. The ratio is expected to be around 9 after results of Mar '14, as the profitability is expected to be slightly lower than Mar '13. The ratio makes Manjushree much cheaper than its peers. The revenues for FY14 is expected to be around 430 Cr, and profit is expected to be around 22 Cr. Off-late, we have seen good amount of promoter buying also in the counter, which raises hopes of company performing much better in quarters to come.
The company has paid dividends regularly, thought not a very high one.
Do enough research work before making investment in the company, as suggested every time.

Dynemic Products - The Name Behind Colors Of Modern Life

Dynemic Products Ltd. is an ISO 9001:2000 & HACCP Certified Company. The company is one of the major manufacturer and exporter in India, offering complete range of Food Colors, Lake Colors, Blended Colors, FD&C Colors & Dye Intermediates.
Dynemic believes in continuous development by incorporating the latest technology to achieve better quality. Dynemic's colours are 100 % safe for human consumption and as per international standards.
Manufacturing facilities include two well equipped plants spread over 50000 Sq Mt of area. Plants are HACCP (Hazardous Analytical Critical Control Point) & ISO 9001:2000, ISO 14001 (Environment Management System) certified.
From inception, The company has laid emphasis on eco-friendly process development for food color and lake colors etc., with high yield and minimum waste & emission levels.

The food colors manufactured by Dynemic Products have variety of Applications such as:
1) Confectionary
2) Beverages
3) Proceed Food
4) Bakery Products
5) Dairy Product
6) Pet Foods
7) Pharmaceuticals
8) Cosmetic & Personal Care Products
The detailed product level application can be found here:
http://www.dynemic.com/application.html#

Moving onto fundamentals now. The stock has been able to grow steadily in highly competitive markets.
This year has been a revelation so far. This year, so far, i.e. for first nine months of FY14,
Sales have grown by 28% over last year.
Net Profit have grown by 151% over last year.
Sales have grown on both, domestic and exports front, for all 3 quarters this year, which is great.
Major R&D expense last year, was one of the responsible factors for good increase in sales and profit, which was expected by the company as per the annual report of FY13.
Last year, for the first time, Company got its Credit Rating through CRISIL, where they assigned BBB/stable on long term and short term bank facilities.

The industry is pollution prone, hence company had installed MEE for treating the effluent generated by both the units as per GPCB norms. This was the major reason, why company saw a decline in net profit last year. But that is past now. They will get benefited going ahead, as there are plenty of companies in their competition, who have not yet installed the same.

Major Risk:
1) Highly competitive market
2) Increase in manufacturing cost on account of higher power and gas prices
3) Strict Pollution norms
4) Exchange Rate Fluctuations

The company has been consistently paying good dividend. Even at current market price, the dividend paid last year makes the dividend yield stand at 4.6%, which is excellent. With good profit this year, the company might pay even better dividend.

Also, recently, the company has been allotted a plot in Dahej - III Industrial Estate having plot area of 80000 sq.mt. Company is planning to start Unit III for manufacturing Dye Intermediates and other Allied chemicals.
This could further boost the development plans of the company.

My Views:
The company is expected to end the FY14 with sales figure of 110 Cr and net profit of 10 Cr, which will take their full year EPS to 9.5. So at current market price, the stock is trading at a P/E ratio of 3, which suggests the undervaluedness of the stock. The stock might face some pressure as stock has already jumped 50% from its result day this quarter, but that should not be a worry for long term investor.