Arrow Coated Products recommended about three months back @ Rs.12.40 ( Old Recommendation Link HERE) which hits its 52 week high today @ Rs.22 .For the latest September quarter Company reported more than 300 % increase in net profit.Recommending to HOLD the stock.
Tuesday, 19 November 2013
Monday, 18 November 2013
This stock recommended on May 18, 2013 @ Rs.340 ( Recommendation Link HERE) which hits its 52 week high today @ Rs.627 .For the quarter ended September, Company reported a turnover of Rs.152 Cr and a net profit of Rs.18 Cr .It is expected to report good performance in second half too.Still recommending to HOLD this stock.
Thursday, 14 November 2013
At a time ,one of my old recommendations -Vesuvius India (Recommendation Link HERE) - recorded its 52 week high price ,recommending another stock from the same sector. IFGL refractories is the flagship company of SK Bajoria group.Company manufacturing Continuous Casting Refractories and Special grade Refractories which find applications in steel industry. Refractory ,in general ,means a class of materials which are produced from nonmetallic minerals and possess capability to withstand heat and pressure .Now IFGL has grown as an Indian multinational with manufacturing facilities located in Brazil, China, Czech Republic, Germany, India, UK and USA. Krosaki HarimaCorporation Japan ,a subsidiary of world’s second largest steel maker NipponSteel Corporation holding about 15 % stake in IFGL.Growing through acquisitions is the strategy of IFGL and it reached the current stage through many acquisitions in the past.In 2005 ,IFGL acquired Monocon group of UK with factories in Brazil,China,USA and UK.In 2006, Goricon Group came to the fold of IFGL .In 2008 ,IFGL acquired Hofmann Ceramic GMBH of Germany with manufacturing facilities in Germany ,USA and Czech Republic.In 2010 ,Ohio ( USA) based EL Ceramics LLC added with it .With all these acquisitions company grown as one of the worlds largest manufacturer of refractories.These acquisitions broadened company’s product portfolio which now consist of Isostatic Refractories,Tube Changer Systems,Cast Products and Monolithics,Slide Gate refractories,Slide gate systems and Foundry Ceramics.In addition to these products for steel industry ,IFGL manufacturing Bio Ceramics for dental,orthopedic and ophthalmic applications.
Fate of refractory companies closely related with the growth of steel industry.Now steel industry world around showing some earlier signs of revival.As a global player ,IFGL is expected to get immense benefit from this revival.Its technical collaboration and equity participation with one of the world leaders also helping the company to adopt latest technology in manufacturing process. A major portion of company’s income is from exports and the currency valuation of currency is also positive for it.
IFGL having a good balance sheet too.Even after these series of acquisitions ,company ‘s debt equity ratio is just 0.55 .For the latest September quarter,on a consolidated basis company reported a Sales of Rs.201 Cr v/s Rs.181 Cr .Net profit improved sharply from Rs.4 Cr to Rs.19 Cr. Half year EPS is Rs.9.70 which is more than the full year figure of last year.Company having an uninterrupted dividend paying record for the past four years.Promoters holding more than 70 % stake( NIL pledged) in the company and another 7 % is held by large investors.At a time the steel industry is showing revival ,I expect IFGL will report its best ever performance in this full year.Even after improvement in its stock price in recent times ,@ CMP Rs.49 ,IFGL is currently trading @ one year forward P/E of just 3 .Considering industry’s improving prospects,stabilization of production from its newly built plant at Kandla SEZ and out performance of company in its financials, I don’t expect any scope for deep correction,hence recommending a BUY @ CMP Rs.49 .Stock listed both in NSE and BSE.
Link to Company website HERE
Disc: I have vested interest in IFGL
Monday, 11 November 2013
LaOpala RG initially recommended @ Rs.66 ( Old posting HERE) which is currently trading @ Rs.561.Company reported a turnoverof Rs.40 Cr v/s Rs.37 Cr and net profit of Rs.5.89 Cr to Rs.4.47 Cr in.September quarter .EPS is Rs.5.56 v/s Rs.4.42 .
Recommending to HOLD the stock
Britannia Industries earlier recommended @ Rs.493 ( old posting HERE ) ,which is currently trading around Rs.875 .Today company reported good numbers for the quarter ended September where turnover is Rs.1740 Cr v/s Rs.1542 Cr and net profit is Rs.98 Cr v/s Rs.59 cr .
Recommending to HOLD the stock
Friday, 8 November 2013
Amara Raja Battery is a company which need no explanation for investors .It is one of the star performer in Indian stock market for the past many years. Company is the second largest battery maker in India next to Exide and the leader in Industrial battery segment.Company having a 26% equity participation and technical collaboration with US conglomerate JohnsonControls.ARB introduced VRLA technology in India and with this ARB emerged as a strong competitor to then undisputed leader - Exide.From an Industrial battery maker ,now ARB grown as a known player in automotive segment and currently the share in auto-industrial batteries stand as 60:40 .In auto sector itself ,company’s major sales coming from replacement market where the margins are almost double compared with OEM supply.To mitigate the impact of slow growth in auto sector ,company is now looking into home UPS segment where potential is immense due to power shortage issues.
Since company is running near to 100% capacity utilisation in all segments ,it is now expanding its production capacities across segments.Part of this expanded capacity will be commercialised in the second half of this FY and and the rest in next FY.It is increasing its Medium Valve Regulated Lead Acid (MVRLA) battery capacity from 1.8 million unit per annum to 3.60 million units per annum (production to start from Q3 FY 2013-14) , Large Valve Regulated Lead Acid (LVRLA) battery capacity from 760 million Ah per annum to 1 billion Ah per annum (production to start from Q4 FY 2013-14), Four-wheeler battery capacity from 5.6 million unit per annum to 8.2 million units per annum (production to start from Q2 FY 2014-15), Two-wheeler battery capacity from 4.8 million unit per annum to 8.4 million units per annum (production to start from Q3 FY 2013-14). As per company estimates its revenue will increase by Rs.1675 Cr due to this capacity expansion.I believe .company’s brands AMARON,QUANTA,POWER STACK,POWER SLEEK,POWER ZONE ..etc will eat the market share of the main competitor in a big way once the capacity expansion completed.
Led by a team of rural youth ,Amara Raja always paying much attention to practical wisdom and hard work in managing and growing their company rather than copy book style theoretical approach.In last five years its profit grown from Rs.80 Cr to Rs.286 Cr and the ongoing capacity expansion may take it to a new level. Company is going to declare its second quarter result on 14thNovember.Due to capacity constraints and unfavourable currency movements during this quarter ,possibility for a temporary blip in performance can’t be ruled out .If it happens and there is any knee jerk reaction on account of this ,an entry around Rs.280 is an excellent opportunity for long term investors.
Link to Websites
Disc: I have vested interest in ARB
Monday, 4 November 2013
Granules India to buy Auctus Pharma for Rs 120 crore
Hyderabad, Nov 4:
Tablet maker Granules India has entered into an agreement to acquire Auctus Pharma, a manufacturer of Active Pharmaceutical Ingredients (APIs), for Rs 120 crore."The acquisition of Auctus fits into our strategy of being a fully integrated manufacturer, while diversifying our product portfolio by adding high-value products with significant market demand. Auctus provides Granules with a meaningful API platform with a US FDA approved site to strengthen our finished dosage division,’ Krishna Prasad, Managing Director of Granules India, said in a release issued on Monday.
Auctus manufacturing units
Hyderabad-based Auctus has two manufacturing facilities, an API facility at Pharmacity in Visakhapatnam and an Intermediate facility in Hyderabad. The API facility has approvals from leading regulatory agencies, including the US FDA.Auctus’ product portfolio includes 12 APIs as well as key intermediates of those APIs.
Auctus product portfolio
The portfolio includes APIs in several therapeutic categories such as Antihistaminic, Antihypertensive, Antithrombotic and Anticonvulsant as well as other therapeutic categories.Auctus currently sells its APIs and intermediates to customers in 50 countries. The team and assets from the acquisition will initially operate as a separate division with Granules.The acquisition process would be completed in the next three to six months, the Hyderabad-based company said in the release.
R&D unit in Hyderabad
Granules also announced the opening of a 10,000 sq. ft. R&D facility in Hyderabad.
The new R&D unit will focus on full-scale generic API development and will supplement the company’s existing R&D facility in Pune which currently focuses on sustainable technology development.
Link to Auctus Pharma HERE
Link to Auctus Pharma HERE
---------------------------------------------------------------------------------------
Courtesy : The Hindu Business Line.
Friday, 1 November 2013
Recommending few stocks below for your consideration on this special event :
· IDFC (CMP Rs.112)
# Showing good resilience even in tough business environment.
# Expecting improvement in target sectors
# Good balance sheet
# Potential candidate for banking License, which may help (at least sentimentally) for a re-rating .
Link to company website HERE
Link to company website HERE
DEWAN HOUSING FINANCE (CMP- Rs.160)
# India’s third largest housing finance company .
# Good presence in low and middle income segments of Tier II and III cities ,where the real potential lies in.
# Cheaply valued stock from this sector with a P/E of less than 5 which is 1/3rd of the average P/E of other companies in the same sector.
TATA STEEL (CMP- Rs 336)
# Expecting improvement in target sectors
# Effect of recent and ongoing capacity expansion
· WOCKHARDT (CMP – Rs.445)
# Distressed valuation due to regulatory overhang
Recently discussed the current situation of Wockhardt in detail .Due to pending USFDA decision, better to avoid buying this stock in single lot.Buy only 30% of the desired qty now and wait with patience .If USFDA decision is negative ,one may get better opportunity to buy more either at the time of announcement or at the time of declaration of the quarterly result post implementation of decision
·
·
Subscribe to:
Posts (Atom)
