VIMAL OIL AND FOODS is one of the largest
listed companies in edible oil sector. It is the
flagship company of VIMAL group based in
Gujarat .Its products list includes cottonseed
oil, groundnut oil, mustard oil, Soyabean oil,
Sunflower oil and Corn oil. Company having
a strong marketing network with 50 depots ,
1500 distributors and presence in 5 lac retail
outlets across 21 states in India . Company is
selling its products under the brand name
‘VIMAL’ and ‘LIPI’ . Company has also
entered in the space of Table Margarine with
‘VImal Lite’ .Another company producing
margarine is Zydus Wellness . Companies
from the edible oil and food space are going
through a re rating in Indian stock Market.
Another comparable company is JVL Agro
which is in the same space has appreciated
many fold in the recent past. Vimal
posted a turnover of Rs.622 Cr and a net profit
of Rs.3 Cr in last full year.(This is a low margin
high volume business) . But ,for the three months
ended June qtr alone ,company has improved its
performance and posted an EPS of Rs.5.24 .
When we look into the share holding pattern ,
in the first instance we may feel that the promoter
holding is low as 19% .But the entire share
holding put under the large public category is held
by the associated of promoters itself ,thus it takes
to 59%. Moreover , company is now going to
issue 70 lac shares on pref.basis to the promoters,
which an an indication of their confidence in the
company .Using this fund company is planning to
add more value added products and improve its
marketing network. All together , it is a risk less
BUY at CMP around RS.60/-
0 comments:
Post a Comment