I have recommended a BUY on Camlin fine chemicals on 12 March 2011 @ Rs.56/- which is currently trading around Rs.90/- . Considering the potential of the company , there is enough scope for appreciation even from current level .So one should hold it for long term . Old Report HERE
Tuesday, 28 June 2011
Saturday, 25 June 2011
Industries with Cyclical nature offering excellent opportunities for long term value investors. Cement industry is a perfect example for this . Currently most of the cement companies are going through a bad situation because of over capacity due to slackness in construction activities . Higher cost of funds on account of a series of interest rate hikes and delay in taking decisions on various infrastructure projects by governments due to recent allegations adding fuel to the fire. But as a vital part of nation building this industry offering fair chances for long term investors. India cements is a south based cement company which is selling its products under three main brands - Sankar , Coromandel and Raasi.Through its subsidiary, Trishul Concrete Products ,company is offering ready mix concrete solutions from its Hyderabad plant.Performance of most of the cement companies from the south were muted due to the reasons mentioned above and the share prices has corrected sharply . Long term sluggishness in any industry will ends in consolidation and improvements in realisations thereafter. India cement is trying to reduce its energy cost by commissioning mini power generation facilities and acquiring coal mines abroad.Benefits of this efforts are expected to impact positively from next financial year onwards.In addition to the over all trend in Cement Industry , India cement is currently trading at its multi year low mainly because of some external factors too.Company's name is mentioned in the ongoing Kalaignar TV related allegations.The recently changed political situation in its home state is also against the company.As a result of all these negatives, India Cement is currently trading around Rs.68/-which is its three year low .Considering many facts , India cement is a value buy for investors but only with a long term view. Buy your first lot at current level and add in dips.
Wednesday, 22 June 2011
AVT Natural Products is a stock discussed in many investor forums in recent times from a level of Rs.140/- onwards. This world leader in food grade marigold oleoresin is now trading around Rs.200/- . What catching the attention even after a sharp rise in stock prices in a weak market is the activity of its promoters. A V Thomas group is a reputed and well known group in South India and mainly engaged in plantation related businesses.In one sense, they are also known as a conservative group( about business) even if they have rewarded its share holders through continuous dividend payout and a bonus.It is surprise to see that such a group is very aggressively hiking their stake through open market purchases. There is nothing unusual in hiking stake by promoters from open market when market is in a weak situation and stock is available at cheap valuations.But here the story is something different. They have acquired substantial shares in last month around Rs.150/- through open market operations and now continuing their purchase even at Rs.200/- which is almost its life time high( after last bonus).There are many possibilities , Company's business is showing robust growth in recent times and its new marketing agreement with US based Kemin for exclusive supply of marigold oleoresin is expected to bring big business to AVT. It is also known that the company is going to introduce some more value added products in near future. Currently , promoters are holding close to 70 % of the total equity of this company as per the March share holding pattern. But through the recent open market purchases it is expected to reach near 75 % . We can't predict whether there will be any de-listing offer is planned in future , but can't write off even this chance considering the history of this group . They came out with an open offer for their only other BSE listed company - Neelamalai Agro- in 2000 at a price of Rs.65 /- but fails to collect the required quantity at that time . Currently, Neelamalai is trading around Rs.386 /- . So anything is possible , let us wait and see ...
Saturday, 18 June 2011
Indian pharma industry is growing steadily over the past many years and it it is expected to do soin future. Along with the sales of big pharma companies , some allied products manufactures are also showing decent growth.Vikram Thermo is such a company.It is a manufacturer of coating polymers used in pharma industry.Coating for tablets are used mainly for the purpose of moisture protection, control release ( sustained release), to keep the flavour and taste. ..etc .Company's manufacturing facility is located near Ahmedabad with an R & D facility.Other than coating polymers company is also manufacturing thickening agents and aromatic chemicals.Its 'Drugcoat' brand is one of the well accepted brands in this industry. Company is showing steady growth over the past many years .In FY 2011 , Vikram posted a turnover of Rs.32 Cr v/s Rs.21 Cr and a net profit of Rs.3 Cr v/s Rs.2 Cr. On an equity base of Rs.5.58 Cr ,full year EPS is Rs.5.4/- .It is also a regular dividend payer too.It is a stock to watch for low risk takers aiming steady growth and reasonable dividend yield . CMP is Rs.25/-
Wednesday, 15 June 2011
ION Exchange is one of the few listed players in water management solutions.Company is offering total water management solutions for home and industry needs.Its water purifiers under the brand name Zero- B is a pioneer product in this category.Due to the scarcity of water ,p otential of this industry is immense. ION is a turnkey supplier of these type solutions for various industrial needs. Company having strong alliances with foreign majors for latest technologies in this sector. This list includes Ireland based Butler Manufacturing Services (BMS), French company Elf Antar SA,Swedish firm Nordic Water Products ..etc. Company having lot of subsidiaries and associate companies . One among them is ION Exchange enviro farms limited .This company is running bio-intensive organic agri-horticulture farms for producing various agri products using organic inputs.Currently it runs organic farms measuring more than 900 acres at various states in India.
Company also marketing its organic products under the brand names ' Organic World' and 'Organic Fresh'. This industry having huge potential in future. Even if ION exchange is a pioneer in water treatment and exists for a long period , its financial performance is telling another story .Promoters inability to encash the available opportunities and implementing successful business plans is a real concern.But after a long time company is now showing some hopes . Management is also taking some steps to give more focus on each divisions and product segments of the company.There is also opportunities for unlocking value in the form of de-merger of non core businesses like Organic farming to a separate entity.For the financial year ended FY 2011 , company posted a turnover of Rs.501 Cr (433 Cr) and a net profit of Rs.6.6 Cr (1.4 Cr) . Considering the opportunities available in the core business and the chances of the de merger of organic farming business in future , risk takers can take limited exposure @ CMP of Rs.135/-
Tuesday, 14 June 2011
Monday, 13 June 2011
Multibase India Ltd is originally started operations as Synergy Poly in 1992. Company’s main product is thermoplastic elastomeric compounds includes master batches of synthetic resin, polypropylene, rubber compounds, thermoplastic master batches, silicone rubber ..etc.Company came through a two step change in management control and now a part of Dow-Corning (France)which is a subsidiary of Dow Corning Corporation USA ,a joint venture of American chemical giant Dow Chemicals and Corning Inc ., a world leader in specialty glass and ceramics.Company’s products are used mainly in sectors like Automotive, Personal Care, Personal hygiene,Stationery ,Telecommunications etc. It is unfortunate to see that ,even if the current promoters behind this company are world leaders in their respective fields and the products having good potential in a country like India,they are not giving sufficient priority to this company.As a result of their negligence and overall recessionary situation in past few years led the company into loss .Last year company moved to profit and in FY 2010-11 ,company posted a profit of Rs.2.91 Cr and an EPS of Rs.2.31.If the promoters are really interested in this company , the potential is huge for this MNC with the patronage of conglomerates like DOW Chemicals and Corning Inc. Keep an eye on the developments in this company which may be a multi bagger ,only moot question is the attitude of promoters. Currently it is quoting around Rs.31, where even huge loss making MNC’s are trading in three digits.
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