Q3 FY'15 Result Updates - Ganesha Ecosphere, Flex Foods, Garware Wall Ropes, Camlin Fine Sciences, Munjal Auto, Dhanuka Agritech And Suven Life Sciences

Off-late, if one has observed, I have stopped discussing about Can Fin Homes and Dewan Housing, as both of them have now became a very stable organization, and they are likely to continue their good performance over the years, with their prices expected to continue giving steady returns over a period of time. Can Fin Homes was first discussed when it was trading around 140 Rs and Dewan Housing was first discussed when it was trading around 158 Rs here:

http://fundamentalstockideas.blogspot.in/2013/06/few-more-multibaggers-for-long-term.html

Since then, both have already given great returns. As both being very stable now, one can easily take his/her decision on these 2 companies.

1) Ganesha Ecosphere:

The result this quarter remained muted but that doesn't seem to be a big worry, as far as future growth is concerned. For the nine months ended Dec'14, the sales have grown by 35%, but profits have remained in check on account of almost 6 times higher tax and almost double finance cost. If one looks at EBIDTA numbers, then the profit has also gone up by 27% for first nine months, which is not at all bad.

On top of it, as per the press release, the company said that the commercial production of Recycled Polyester Staple Fibre (RPSF) has been started at Company’s unit situated at Temra, Bilaspur, Distt. Rampur (U.P.), w.e.f. 01.12.2014. The unit is having installed capacity of 21,000 TPA and taking this into account the consolidated RPSF capacity of the Company will reach to 87,600 TPA.

Also, the company gets further encouragement looking at the fact that the new jersey of Indian Cricket Team for the World Cup 2015 is made from recycled plastic bottles:

http://www.sportskeeda.com/cricket/indian-cricket-team-new-jersey-33-recycled-plastic-bottles

Overall, I continue to be positive on the company for long term.

2) Flex Foods:

Again, we have a company, which has kept on growing in sales, but failed to show good profits, which has got plenty of traders/investors go against it. However, once again, if we look at results of nine months, sales are up by 19% and profit up by 24%, which is again, not bad. The company is likely to end the year with EPS of close to 10, which will make it look very cheap at current market price. However, it is not necessary the investors will definitely reward it, on account of some poor reputation of management among investors/traders, but definitely it is worth considering for investment, if one has some risk potential.

For safe investors, it is advisable that they take their own decision based on their risk profile after looking at overall data.

3) Garware Wall Ropes: 

Good set of numbers posted by the company, except slightly lesser growth than expected. Sales for the quarter grew by 9% and profit by 45%. For the nine months, the sales have gone up by 18% and net profit by 60%, which is good going by the company, especially in tough sector.

Not much to comment or update here, as company seems to be on track. 

Still positive on the company.

4) Camlin Fine Sciences:

This company has been a revelation. It has certainly gone up way beyond my expectation, especially, after I first wrote about it in Feb last year. At that time it was trading at 12 Rs (adj to stock split):
http://fundamentalstockideas.blogspot.in/2014/02/camlin-fine-sciences-hidden-player-in.html
It is expected that the company will report very good consolidated numbers at the end of the year, and hence flat to positive standalone numbers were not affecting its journey. However, the standalone numbers this quarter did look amazing with sales growing by 19% and profit by 41%. This led to another rally in stock price, along with listing of company's shares in NSE, which added fuel to fire.
Good to see that company gave a highlight of consolidated numbers this time, which is looking decent.
It is tough to judge the stock at current market price, especially after seeing it go up by 8 times in past 1 year. However, based on its possible future growth and market share of its anti-oxidants, I continue to remain positive on the company.

5) Munjal Auto:
First time in many years, I have seen the company reporting flat sales, which raises few concerns. But there are lot many positives about the company, which forces me to be still positive on it before being judgmental based on just 1 quarter numbers.
The company has very reputed management with good client tele, They have very consistent profit growth for past 5 years. ROE over many years has been really good. Their approach towards investors by paying good dividend over the years and many more. All these data, keeps me still hopeful and positive about the company and its possible good growth in future.

6) Dhanuka Agritech:
Not much to comment about the numbers this quarters, as it is expected to remain flat. But still, the company does not fail to deliver at least some growth as far as topline and bottomline are concerned which is good to see.
On account of poor rain this year, the company cut its revenue growth guidance to 7-8%, which is fair especially after poor rainfall in most parts of the country this year.
On positive side, the company just launched one more product, which could cut the farmers cost by half:
http://economictimes.indiatimes.com/news/economy/agriculture/dhanuka-agritech-launches-herbicide-for-sugarcane-crop/articleshow/46200486.cms
Considering the fact that stock was recommended around 158 Rs, and it is now trading at 520 Rs with a high P/E, it would fair enough to assume that I would be neutral on stock.

7) Suven Life Sciences:
The stock has already turned 10 bagger since its first discussion on this blog here:
http://fundamentalstockideas.blogspot.in/2013/06/few-more-multibaggers-for-long-term.html 
The company has very strong fundamentals which has led to this rally, plus their concentration on CRAMS business, which is one of the most profitable business in pharma industry. The market capitalization of the company has already crossed 3000 Cr, which is good to see.
It seems that the stock has entered the league of safe stocks, which can be considered for steady returns with lesser risk.
However, after such levels of appreciation in past 1.5 years, it is advisable that readers take their own call based on their risk profile.