I have recommended a BUY on AVANTI FEEDS @ Rs.68 on Septer13,2011.(Old Posting HERE) Currently this stock is trading around Rs.134/-. An appreciation of almost 100 % in 45 days. One may book profit at current level and re-enter in a dip(if any) around Rs.105-110.
Sunday, 30 October 2011
Friday, 28 October 2011
As the name indicates, this company (CMRL) is based in Cochin,Kerala having manufacturing facilities to produce Synthetic Rutile (45000 TPA), Ferric Chloride (24000 TPA), Ferrous Chloride (72000 TPA) and Cemox18000 TPA.These products are made from Ilmenite using indigenous technology.These products are used in Welding electrodes,abrasives,paints,Effluent treatment,inks,pigments,bricks and tiles..etc.Raw material for these products - ilmenite-is mainly sourced from the beach sands of Kerala.Water desalination plants in Gulf countries are one of the major customers of company's products.Since the number of companies producing these products are very few in India , company is enjoying good margins.For the latest quarter ended September 2011,CMRL posted a turnover of Rs.47 Cr v/s Rs.31 Cr and a net profit of Rs .8.2 Cr v/s Rs.90 lac .Six month EPS is Rs.13.75/-Company is a consistent dividend payer too.Since company is earning major portion of income from exports ,favorable exchange rate situation also helped the company to post good results.Proximity of the source of raw material is one of the biggest advantage of CMRL .One of the major concern about the company is the frequent opposition of local people against sea sand mining.There is also some allegations about some transactions between a public sector unit and CMRL.Being a 20 year old company ,it is expected to handle these local issues effectively .Based on the robust performance there is reasonable chance for appreciation from its current market price of Rs.78/-
Wednesday, 26 October 2011
Happy Diwali
KAVERI SEED COMPANY
FORTIS HEALTHCARE
ADITYA BIRLA NUVO
TATA CHEMICALS
ADITYA BIRLA NUVO
TATA CHEMICALS
YES BANK
Sunday, 23 October 2011
Zicom Electronic Security Systems is probably the only pure BSE listed company from the Electronic Security systems manufacturing industry.It produces various security systems solutions includes Home Alarm Systems,Video door phones,Fire alarm Systems,CCTV Surveillance,Fingerprint Locks,Metal Detectors..etc.Due to the increasing number of theft and burglary incidents scope of such business is increasing in recent times.Company recently introduced 24 x 7 burglary protection at a cost of Rs.16/- per day in the name of of '8 Ka Dum'.Zicom also introduced Security systems for telecom towers.All together the prospects of industry is very bright .The negative side of this company is the background of promoters and some of their recent actions which is not minority shareholder friendly. One of the promoter Mr Pramoud Rao earlier promoted a company(jointly) named Jayanthi Business Machine .After collecting money through an IPO company vanished in few years.In recent times Zicom sold its Building Solutions Group and Special Projects Group,which are mainly focused on government and institutional sales to Schneider electric and now left with retail business.The sold division had a turnover of approximately Rs.180 Cr and the business sold for Rs.224 Cr.In many recent cases this type asset sales are benefiting only the promoters and nothing to the minority share holders and this case too may not an exception.If promoters are really like to save the minority share holders there were many other options like de-merge this business into a separate company ,issue the shares of this company to all share holders in proportion and then sell the entire company to the foreign buyer...etc. Another cause of concern is the lowest promoter holding as low as 20 %. But two points are attracting at this point of time.First one is its improving financials and second is the effort of promoters to hike their stake through open market purchases.We don't know what they are planning now but one thing is sure - this company is in an industry with good potential.If promoters are ready to change their attitude towards minority share holders and willing to utilize the amount generated from the sale of institutional business to grow the retail business, still there is chance.Only high risk investors can take limited exposure at CMP of Rs.38/-
Wednesday, 12 October 2011
I have recommended DFM FOODS on September 19,2010 @ Rs.48/- ( Click HERE for old posting ).Currently it is trading @ Rs.255.65 , an appreciation of more than 500 % in one year.One may book at least part profit at Current market Price.Those who are not interested to take higher level of risk may exit completely .
Tuesday, 11 October 2011
I have recommended a BUY on Indag Rubber @ Rs.95 on July 2,2011. Company reported good numbers for the quarter ended September , where its turnover moved from Rs.36 Cr to Rs.54 Cr and net profit rose 136 %
to Rs.5.24 Cr from Rs.2.22 Cr . Six months EPS is Rs.17.25 v/s Rs.8. Today Indag closed at its all time high @ Rs.143.25 ( up 20%). Long term investors can still HOLD the same .Company also declared an interim dividend of 15%
For old posting , Click HERE
to Rs.5.24 Cr from Rs.2.22 Cr . Six months EPS is Rs.17.25 v/s Rs.8. Today Indag closed at its all time high @ Rs.143.25 ( up 20%). Long term investors can still HOLD the same .Company also declared an interim dividend of 15%
For old posting , Click HERE
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