Q4 Result and Press Release: Click Here
Board recommends Dividend:
Thangamayil Jewellery Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 24, 2013, inter alia, has recommended a dividend of 50% i.e. Rs. 5/- per equity share of face value of Rs. 10/- each subject to share holders approval in the ensuing Annual General Meeting.
My Views:
As expected, the results proved to be disappointing, and it seems that the trend might continue at least for next quarter. But still there are many positives that can be taken from the results.
If one compares revenues YoY, you will still find around 17-18% growth which is not bad during tough times.
Of course, we should not neglect the fact that this is probably the first time, company has reported loss. EPS of -4.
So its important to know the reasons, apart from recent disaster with gold, that contributed to heavy expenses.
If we look at the press release, it says, that Advertising and Publicity expense, has gone to 13 Crs from 2 Crs last year same quarter (which indicates an expense increase by 650%). To add to that, Employee Benefit expense has gone up to 6.6 Crs from 3.1 Crs.
Both these expenses, looks good for long term, even if it has resulted into loss as of now.
Considering the fact that promoters have been buying around 190-200 levels, and also some buying around 250-275 levels, the fundamentals of the company still looks promising.
With new branches coming up every few days, and no change in demand of gold in South India, I would advice people to still hold and may be buy on dips.
Dividend of 5 Rs per share seems to be disappointing, considering the fact that last year, at around same stock price, they gave a dividend of 7 Rs per share. But that is evident seeing the fact that the net profit for the year ended March 2013 is exactly half to that of year ended March 2012.
Take your own decision after proper analysis, because this stock is dependent on a commodity, and price of commodity doesn't vary based on fundamentals, it varies according to demand and supply.
Saturday, May 25, 2013
Tuesday, May 21, 2013
Infinite Computers Ltd. - Latest News
Financial Results & Auditors Report for March 31, 2013
Link: Click Here
Board recommends Final Dividend
Link: Click Here
Press Release
Link: Click Here
Infinite Computers Enters The Elite List of Respected Software Companies, To Receive Coveted
Link: Click Here
Q4 traditionally weak quarter, Q3 strong
Link: Click here
My Views:
If we just look at the standalone numbers for this quarter, it has been disappointing compared to last quarter i.e. Q3-FY13. But as per the management, "Q3 has always been a very strong quarter, and Q4 has been a weak one for the company."
If we agree with them and go back and compare the numbers with same quarter last year, then one can get a sigh of relief that still there has been a significant growth YoY.
Revenues has grown by 23% and net profit has grown by a staggering 125%, which is not bad.
The company has a record of paying good dividend to its investors, which is another good sign.
Another important point is that, promoters were on a buying spree when the stock was around 150-160 levels, and they haven't sold a single share yet.
Current Market trend is negative for this script, hence it might see lower levels, but its looking good for long term.
Link: Click Here
Board recommends Final Dividend
Link: Click Here
Press Release
Link: Click Here
Infinite Computers Enters The Elite List of Respected Software Companies, To Receive Coveted
Link: Click Here
Q4 traditionally weak quarter, Q3 strong
Link: Click here
My Views:
If we just look at the standalone numbers for this quarter, it has been disappointing compared to last quarter i.e. Q3-FY13. But as per the management, "Q3 has always been a very strong quarter, and Q4 has been a weak one for the company."
If we agree with them and go back and compare the numbers with same quarter last year, then one can get a sigh of relief that still there has been a significant growth YoY.
Revenues has grown by 23% and net profit has grown by a staggering 125%, which is not bad.
The company has a record of paying good dividend to its investors, which is another good sign.
Another important point is that, promoters were on a buying spree when the stock was around 150-160 levels, and they haven't sold a single share yet.
Current Market trend is negative for this script, hence it might see lower levels, but its looking good for long term.
Monday, May 6, 2013
Trading an Illiquid Stock
Due to new SEBI guidelines, approximately 2100 stocks were moved to illiquid stocks category, effective 8th April 2013.
Circular prepared by SEBI for illiquid stocks.
Link: Click Here
How to trade an illiquid stock:
1) 6 periodic call auction sessions (1 hour each) would be held daily.
First session will start at 9.30 AM, and the last would be at 2.30 PM. From a session of 1 hours, 45 minutes will be for order entry, order modification and order cancellation, 8 minutes will be for order matching and trade confirmation and remaining 7 minutes shall be a buffer period for closing the current session and facilitating the transition to next session.
2) To trade, one can place the order between 9.30 AM and 10.15 AM, and respectively going ahead for every session. User won't be allowed to place any orders from 10.15 AM to 10.30 AM. This time period will be used for settling trades. If a matching trade is found between yours and someone else's order (buy and sell), that will be settled in 15 mins period.
3) If there is no match found for your order, in that session, your order will be cancelled. It wont be carry forwarded to next session. Hence, you will have to place your order again, if it doesn't get executed, in a particular session.
Because of the above rule, one cannot place the order in the morning and leave, like what it was, before. One has to keep an eye on a particular session, to get his order executed.
Among all the stocks suggested on this site, Photoquip India, Money Matters Financial Services, Gulshan Polyols and Cravatex are trading in this category.
I have tried my best to explain trading on illiquid stocks categorized by SEBI.
Still, if someone is unclear, please feel free to post your queries here.
Circular prepared by SEBI for illiquid stocks.
Link: Click Here
How to trade an illiquid stock:
1) 6 periodic call auction sessions (1 hour each) would be held daily.
First session will start at 9.30 AM, and the last would be at 2.30 PM. From a session of 1 hours, 45 minutes will be for order entry, order modification and order cancellation, 8 minutes will be for order matching and trade confirmation and remaining 7 minutes shall be a buffer period for closing the current session and facilitating the transition to next session.
2) To trade, one can place the order between 9.30 AM and 10.15 AM, and respectively going ahead for every session. User won't be allowed to place any orders from 10.15 AM to 10.30 AM. This time period will be used for settling trades. If a matching trade is found between yours and someone else's order (buy and sell), that will be settled in 15 mins period.
3) If there is no match found for your order, in that session, your order will be cancelled. It wont be carry forwarded to next session. Hence, you will have to place your order again, if it doesn't get executed, in a particular session.
Because of the above rule, one cannot place the order in the morning and leave, like what it was, before. One has to keep an eye on a particular session, to get his order executed.
Among all the stocks suggested on this site, Photoquip India, Money Matters Financial Services, Gulshan Polyols and Cravatex are trading in this category.
I have tried my best to explain trading on illiquid stocks categorized by SEBI.
Still, if someone is unclear, please feel free to post your queries here.
Tuesday, April 30, 2013
Ajanta Pharma - Latest News
Ajanta Pharma - Financial Results & Results Press Release for March 31, 2013
Link: Click Here
Ajanta Pharma - Press Release
Link: Click Here
Ajanta Pharma - Board recommends Dividend
Ajanta Pharma Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 30, 2013, inter alia, have recommended Dividend @ Rs. 6.25 per equity share of the face value of Rs. 5/- each, subject to approval of Shareholders at the ensuing Annual General Meeting to be held on July 13, 2013.
Ajanta Pharma - Allotment of Shares under ESOS, 2011
Ajanta Pharma Ltd has informed BSE that the Compensation Committee of Directors at its meeting held on April 30, 2013, has allotted 16,800 fully paid up equity shares of Rs. 5/- each. These shares have been allotted upon exercising of options granted to the employees under Employees Stock Option Scheme - 2011 of the Company.
My Views:The results to me looks outstanding as I can see the revenue growth of 40% for 3rd consecutive quarter, which can be considered nothing less than an unbelievable performace by the company.
Hats Off to the management!!!!!!!
If one asks me, I would say long term investor are advised to stay invested (But, everyone can take their own decision)
I expect a target of 1000 by end of year. (If the growth story continues in similar fashion)
I wont be commenting on any short term movements... :-)
Link: Click Here
Ajanta Pharma - Press Release
Link: Click Here
Ajanta Pharma - Board recommends Dividend
Ajanta Pharma Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 30, 2013, inter alia, have recommended Dividend @ Rs. 6.25 per equity share of the face value of Rs. 5/- each, subject to approval of Shareholders at the ensuing Annual General Meeting to be held on July 13, 2013.
Ajanta Pharma - Allotment of Shares under ESOS, 2011
Ajanta Pharma Ltd has informed BSE that the Compensation Committee of Directors at its meeting held on April 30, 2013, has allotted 16,800 fully paid up equity shares of Rs. 5/- each. These shares have been allotted upon exercising of options granted to the employees under Employees Stock Option Scheme - 2011 of the Company.
My Views:The results to me looks outstanding as I can see the revenue growth of 40% for 3rd consecutive quarter, which can be considered nothing less than an unbelievable performace by the company.
Hats Off to the management!!!!!!!
If one asks me, I would say long term investor are advised to stay invested (But, everyone can take their own decision)
I expect a target of 1000 by end of year. (If the growth story continues in similar fashion)
I wont be commenting on any short term movements... :-)
Saturday, April 27, 2013
Granules India - Latest News
Granules India expects 30% growth in FY14
Link: Click Here
Granules India - Financial Results for March 31, 2013 (Audited)
Link: Click Here
Granules India - Press Release
Link: Click Here
Granules India - Allotment of Equity Shares:
Granules India Ltd has informed BSE that the Share Transfer and Shareholders / Investors Grievance Committee at their meeting dated April 25, 2013 has approved to allot 5,000 equity shares in consequent to exercise of options under ESOP 2009.
Granules India - Board recommends Final Dividend:
Granules India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 25, 2013, inter alia, has recommended a Final dividend of Rs. 2.00 per share representing 20% of Paid Up Capital for the financial year 2012-13.
Link: Click Here
Granules India - Financial Results for March 31, 2013 (Audited)
Link: Click Here
Granules India - Press Release
Link: Click Here
Granules India - Allotment of Equity Shares:
Granules India Ltd has informed BSE that the Share Transfer and Shareholders / Investors Grievance Committee at their meeting dated April 25, 2013 has approved to allot 5,000 equity shares in consequent to exercise of options under ESOP 2009.
Granules India - Board recommends Final Dividend:
Granules India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 25, 2013, inter alia, has recommended a Final dividend of Rs. 2.00 per share representing 20% of Paid Up Capital for the financial year 2012-13.
Tuesday, April 9, 2013
Money Matters Financial Services Ltd (Capri Global) - The Comeback Journey
In 2010 end, there was a big housing loan scam that rocked the nation, and Money Matters Financial Services Ltd.(MMFSL) was proved to be the biggest culprit in that scam.
The stock was trading at 712 Rs on 16th Nov 2010, and the same script hit a low of 47.5 Rs on 16th May 2011. Promoters sold 15% shares from open markets as soon as the scam hit the media, and the CEO of the company was put behind the bars.
Link For Details Of Scam: http://en.wikipedia.org/wiki/2010_housing_loan_scam_in_India
The good thing was that promoters knew that they didn't do anything wrong with the results of the company or anything like that, hence it was always on the back of their mind that they will rise again one day.
2-3 consecutive quarters after the scam, they reported heavy losses, but they ensured that they cleared all their debts (generated because of scam) in that same period.
When the script hit a low of 47.5 Rs, the promoters of the company bought back 5% shares from open market (Around 23rd May, 2011). That was the time, we felt like, a better future can be expected from the company. After those 2 horrible quarters, they went back into profits, and that boosted my confidence in the company and their future.
Then in 2012 again, as soon as the month of April came, Promoters again bought back 5% shares from open market at an avg price of 75-80 Rs.
The journey of revenues for company since Sept 2011 has been unbelievable.
Sep 11 - 83 Crs
Dec 11 - 149 Crs
Mar 12 - 183 Crs
Jun 12 - 214 Crs
Sep 12 - 293 Crs
Dec 12 - 508 Crs
The month of April is here again. And as expected, the promoters have started buying again.
On 4th and 5th of April 2013, they have acquired around 4.71 Lakh shares which are worth almost 5 Cr Rs.
As per my calculations, 5% shares would be equivalent to 16 Lakh shares (approx.)
Hence we can expect the acquisition to continue for few more days.
The Major Worry: Lots of people have asked me about the safety of investing in a company, which has already been in one of the scam. The worry among investors is pretty much valid, and probably, that is the reason why stock hasn't gone up more than 180 Rs levels, even after spectacular performance quarter after quarter.
I believe in this script doesn't mean that each and every one following this board should.
Each one is requested to analyze the script themselves and take decisions further.
Also, if anyone is afraid, calculate your risk taking ability before investing in the company.
Disclosure: I have invested in the company since May 2011 at an avg price of 53-54 Rs, and will continue to hold, as I can see further 5% acquisition by the promoters in the company.
Success is not in never falling, but rising everytime you fall!!!
The stock was trading at 712 Rs on 16th Nov 2010, and the same script hit a low of 47.5 Rs on 16th May 2011. Promoters sold 15% shares from open markets as soon as the scam hit the media, and the CEO of the company was put behind the bars.
Link For Details Of Scam: http://en.wikipedia.org/wiki/2010_housing_loan_scam_in_India
The good thing was that promoters knew that they didn't do anything wrong with the results of the company or anything like that, hence it was always on the back of their mind that they will rise again one day.
2-3 consecutive quarters after the scam, they reported heavy losses, but they ensured that they cleared all their debts (generated because of scam) in that same period.
When the script hit a low of 47.5 Rs, the promoters of the company bought back 5% shares from open market (Around 23rd May, 2011). That was the time, we felt like, a better future can be expected from the company. After those 2 horrible quarters, they went back into profits, and that boosted my confidence in the company and their future.
Then in 2012 again, as soon as the month of April came, Promoters again bought back 5% shares from open market at an avg price of 75-80 Rs.
The journey of revenues for company since Sept 2011 has been unbelievable.
Sep 11 - 83 Crs
Dec 11 - 149 Crs
Mar 12 - 183 Crs
Jun 12 - 214 Crs
Sep 12 - 293 Crs
Dec 12 - 508 Crs
The month of April is here again. And as expected, the promoters have started buying again.
On 4th and 5th of April 2013, they have acquired around 4.71 Lakh shares which are worth almost 5 Cr Rs.
As per my calculations, 5% shares would be equivalent to 16 Lakh shares (approx.)
Hence we can expect the acquisition to continue for few more days.
The Major Worry: Lots of people have asked me about the safety of investing in a company, which has already been in one of the scam. The worry among investors is pretty much valid, and probably, that is the reason why stock hasn't gone up more than 180 Rs levels, even after spectacular performance quarter after quarter.
I believe in this script doesn't mean that each and every one following this board should.
Each one is requested to analyze the script themselves and take decisions further.
Also, if anyone is afraid, calculate your risk taking ability before investing in the company.
Disclosure: I have invested in the company since May 2011 at an avg price of 53-54 Rs, and will continue to hold, as I can see further 5% acquisition by the promoters in the company.
Success is not in never falling, but rising everytime you fall!!!
Sunday, February 10, 2013
Tough times Never Last, But Tough Stocks Do
Looking at the quick success achieved by Ajanta Pharma and Thangamayil Jewellery, it seems that making money is so easy in Indian Markets, but it isn't.
They were able to achieve the early success because they were able to post numbers beyond expectations most of the times.
In small caps, as they say, posting numbers which are just as expected doesn't light up the eyes of big investors who actually has the capacity to take the stock to new levels.
For eg., We saw in Ajanta Pharma that, it used to make nearly 10000 volumes a day, on a consistent basis. But suddenly, from 23rd Jan (i.e. the day when they declared results), I haven't seen the stock doing volumes even less than 1.5 lakhs in a day. So, was there a sudden change in fundamentals of the company?
The answer is No. It is just that, big institutes, suddenly fell in love with the company's fundamentals and they took the stock to new levels. And this could happen any day with any company. Not just the day when they post strong numbers.
If we go back and say that Ajanta Pharma posted a strong Q3 numbers due to which the stock went up, then let me remind all, that this time, Ajanta Pharma's revenues went up by 40% YoY and net profits went up 75% YoY, whereas if you check Q2 results, their revenues again went up by 40% and net profit actually went up by 85%. But still the stock got hammered after Q2 results, it came down from 447 to 358 levels and this time, it went up from 409 to 670 levels. So, this is something, I feel, one cannot predict, but we atleast try to be sure, that it will happen some day.
They were able to achieve the early success because they were able to post numbers beyond expectations most of the times.
In small caps, as they say, posting numbers which are just as expected doesn't light up the eyes of big investors who actually has the capacity to take the stock to new levels.
For eg., We saw in Ajanta Pharma that, it used to make nearly 10000 volumes a day, on a consistent basis. But suddenly, from 23rd Jan (i.e. the day when they declared results), I haven't seen the stock doing volumes even less than 1.5 lakhs in a day. So, was there a sudden change in fundamentals of the company?
The answer is No. It is just that, big institutes, suddenly fell in love with the company's fundamentals and they took the stock to new levels. And this could happen any day with any company. Not just the day when they post strong numbers.
If we go back and say that Ajanta Pharma posted a strong Q3 numbers due to which the stock went up, then let me remind all, that this time, Ajanta Pharma's revenues went up by 40% YoY and net profits went up 75% YoY, whereas if you check Q2 results, their revenues again went up by 40% and net profit actually went up by 85%. But still the stock got hammered after Q2 results, it came down from 447 to 358 levels and this time, it went up from 409 to 670 levels. So, this is something, I feel, one cannot predict, but we atleast try to be sure, that it will happen some day.
1) Granules India Ltd:
The company, right now is going through the toughest time of their career in stock markets, even after posting a record revenues of 195 Crs this quarter. The reason being, people expected it to post numbers which included the revenues from the capacity expansion by the company in this quarter. The only option left for management to get back the faith of investors (atleast those same investors, who took the stock from 55 to 230 levels within 9 months), is to make some positive announcements. One can be further promoter buying, for the remaining 0.5% allowed for the year, one can be through a notice suggesting the completion of capacity expansion and making sure that they contribute to sales for this quarter, and last one would be to wait and watch this quarter results directly in April.
Somehow, the company needs to get out of the tough times.
The company, right now is going through the toughest time of their career in stock markets, even after posting a record revenues of 195 Crs this quarter. The reason being, people expected it to post numbers which included the revenues from the capacity expansion by the company in this quarter. The only option left for management to get back the faith of investors (atleast those same investors, who took the stock from 55 to 230 levels within 9 months), is to make some positive announcements. One can be further promoter buying, for the remaining 0.5% allowed for the year, one can be through a notice suggesting the completion of capacity expansion and making sure that they contribute to sales for this quarter, and last one would be to wait and watch this quarter results directly in April.
Somehow, the company needs to get out of the tough times.
2) Cravatex Ltd:
The company posted Q3 numbers on 8th Feb, and not surprisingly, they were again below expectations. The revenues went down by 10% YoY and net profit took a severe hit, and was down almost 58% YoY.
They would find it difficult to get back to heavy profits, unless the rupee gets stronger. Till then, they should find ways to grow their revenues more and more.
The updated website looks cool and promising, but it is definitely going to be tough for them, as the investors had lots of expectations from the company, just a year back, when it made a high of 799 Rs around April, and that was after the company provided bonus shares 1:1
Let's see, if the company is able to weather this storm and get back the confidence of investors in future.I have found a quote for both the companies and it says:
"Prosperity is a great teacher; adversity is a greater. Possession pampers the mind; privation trains and strengthens it"
The company posted Q3 numbers on 8th Feb, and not surprisingly, they were again below expectations. The revenues went down by 10% YoY and net profit took a severe hit, and was down almost 58% YoY.
They would find it difficult to get back to heavy profits, unless the rupee gets stronger. Till then, they should find ways to grow their revenues more and more.
The updated website looks cool and promising, but it is definitely going to be tough for them, as the investors had lots of expectations from the company, just a year back, when it made a high of 799 Rs around April, and that was after the company provided bonus shares 1:1
Let's see, if the company is able to weather this storm and get back the confidence of investors in future.I have found a quote for both the companies and it says:
"Prosperity is a great teacher; adversity is a greater. Possession pampers the mind; privation trains and strengthens it"
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