Are you worried with the current market correction?? Not be so.. it's a healthy sign for further rallies .. Nifty has corrected by around 4% from a peak of around 5530 mid August & currently at 5350 levels. All my stocks are available @recommended prices or on slight dips which is a golden chance for those to enter who have missed the bus so far!! Correction are wonderful buying oppurtunities & India Inc is a growing chapter after 2008 recession.. So BUY NOW... Make use of current market dip...
I believe Nifty is poised to make new highs - cross 6250 mark by 2011 March !! So make the right move... Please dont be disturbed by -ve market sentiments from a few analysts ..
REMEMBER : Undervalued Stocks of stable companies with strong earnings growth will continue to ride on beyond market corrections ... The only thing we should be cautious is a near recession which I dont see currently !
Tuesday, August 31, 2010
Monday, August 30, 2010
Dujodwala Products Limited - BUY NOW!
Business: Today I bring up another star player in field of Commodity chemicals & Resins – DUJODWALA PRODUCTS LIMITED – a pioneer in the field of Rosin and Terpene Chemicals. Based out of Maharashtra, DPL changed gears a couple of years back & forayed into producing variety resins – comes out to be the Game changer for the company which has been inflating its bottom-line and earnings exponentially Q over Q. DPL has its own indigenous state-of–art production plants equipped with most modern machinery and test laboratory facilities to meet the toughest norms of international quality controls. They produce Camphor derivatives, pine oils, Rosin, Turpentine oil derivatives and a range of Resin variants covering the following potential big markets:
- Pharmaceuticals / Pesticides
- Adhesives/Paints/Benzon
- Perfumery products / Pooja & Aarti products / Agarbathis / Nail polishes / varnishes
- Tyres / Rubber
- Textile / Leather derivatives
- Printing Inks
… & many more industries.. the list is endless.. the market reach & base is infinite …
Financials : The company has posted a Trailing Twelve Months - TTM EPS of 8.36 (whopping 1200% up from FY09) with a topline of 145.8 crores and Profit of 7.21 crores (whopping 1300% from FY09). The company continues to grow zooming northwards declaring mind-blowing June10 Q results (believe me !!) – an EPS of 5.23 (compared to 0.76 last FYQ1). Going forward, considering infinite addressable market and strong earnings growth, this company seems heading straight for an annualized EPS of more than 15 this FY itself. At current price of 57 Rs – you don’t have to think twice .. DPL is seriously undervalued and available at a PE of less than 4. The stock is a SURE SHOT BUY!!
Positives – The company has a strong SHP which increased from 41% to 44% now in last 4 years – you see that promoters are very confident about future performance & growth.
- Paid up equity capital has not increased in last 2-3 years.
- DPL has reach in almost every business vertical & in a country of 120 crores population you can easily imagine the horizontal demand explosion.
- This stock is recession proof.
Negatives – There are a few competitors in the organized sector.
Conclusion : The stock has a decent run so far this year to reach 54-58 levels. Time to HURRY UP to buy DUJODWALA PRODUCTS LIMITED at current levels before DII & FII start investing. Beyond doubt, this stock has the potential to double in next 6-7 months duration visualizing an EPS of 15+ on a conservative basis this FY. If the company continues to perform well as shown by its profits & earnings, the stock is a long term hold.
- Pharmaceuticals / Pesticides
- Adhesives/Paints/Benzon
- Perfumery products / Pooja & Aarti products / Agarbathis / Nail polishes / varnishes
- Tyres / Rubber
- Textile / Leather derivatives
- Printing Inks
… & many more industries.. the list is endless.. the market reach & base is infinite …
Financials : The company has posted a Trailing Twelve Months - TTM EPS of 8.36 (whopping 1200% up from FY09) with a topline of 145.8 crores and Profit of 7.21 crores (whopping 1300% from FY09). The company continues to grow zooming northwards declaring mind-blowing June10 Q results (believe me !!) – an EPS of 5.23 (compared to 0.76 last FYQ1). Going forward, considering infinite addressable market and strong earnings growth, this company seems heading straight for an annualized EPS of more than 15 this FY itself. At current price of 57 Rs – you don’t have to think twice .. DPL is seriously undervalued and available at a PE of less than 4. The stock is a SURE SHOT BUY!!
Positives – The company has a strong SHP which increased from 41% to 44% now in last 4 years – you see that promoters are very confident about future performance & growth.
- Paid up equity capital has not increased in last 2-3 years.
- DPL has reach in almost every business vertical & in a country of 120 crores population you can easily imagine the horizontal demand explosion.
- This stock is recession proof.
Negatives – There are a few competitors in the organized sector.
Conclusion : The stock has a decent run so far this year to reach 54-58 levels. Time to HURRY UP to buy DUJODWALA PRODUCTS LIMITED at current levels before DII & FII start investing. Beyond doubt, this stock has the potential to double in next 6-7 months duration visualizing an EPS of 15+ on a conservative basis this FY. If the company continues to perform well as shown by its profits & earnings, the stock is a long term hold.
Friday, August 27, 2010
Poddar Pigments - BUY !
Business : Jaipur based Poddar Pigments Limited is coming out with flying colors – Yes, PPL produces colored Dyes and Pigments used in Textiles, Plastics & packaging, Engineering compounds, molding machines etc. The company claims to be the pioneer in India for fibre-grade Master-batches with a capacity of 8400 TPA and the first in India for creating Master-batches for dope dyeing for Poly propylene, Nylon & polyester multifilament yarn & fibres. Looking at its product offerings & portfolio, well, no prizes for guessing that its pigments will always be in increasing demand from domestic as well as international customers. The potential markets for PPL products looks really impressive -
- Knitted Fabrics (Socks, Sportswear and undergarments etc.)
- Carpets (Floor coverings)
- Woven Fabrics (Medicinal and Sanitary clothing)
- Household Textiles (Upholsteries, Textile Wall coverings, Garments etc)
- Non-woven - Hospitals and other sanitary supplies.
Financials : For FY2009-10, the company posted an EPS of 12.10 (almost 4 times of FY09) with a topline of 162.4 crores and net Profit of 14.20 crores (up whopping 257% from FY09). The company continues to be in sync with its exponential growth pattern declaring decent June10 Q results – an EPS of 2.49 (compared to 2.04 last year). Looking at the potential market reach and growing orders – this company seems pacing for an annualized EPS of more than 12 this FY also. At current price of 48 Rs – this stock is highly undervalued and available at a PE of less than 4.5. The stock is a DECENT BUY and one can hold this stock long for strong upside in time to come.
Positives : The company has a strong SHP which increased from 41% to 55% now in last 6 years – in fact, last year company management did a buyback of its shares from the market which highlights that future looks bright for Poddar Pigments – speaks volumes about promoters confidence in the company.
Positives : The company has a strong SHP which increased from 41% to 55% now in last 6 years – in fact, last year company management did a buyback of its shares from the market which highlights that future looks bright for Poddar Pigments – speaks volumes about promoters confidence in the company.
- PPL has a topline of more than 150 crores on an Equity base of just 10.61 crores – impressive !
- its Debt/Equity ratio is less than 0.5 and it’s backed by good working capital management.
- Poddar Pigments has a huge up growing addressable market.
Negatives : There are a few competitors in the unorganized sector.
- It addresses textile market largely which is a cyclic sector but icing on the cake ~ we are currently in a textile boom cycle.
Conclusion : The stock has been hovering around 44-49 range for some time which makes a perfect buying zone. The recent revival in company with strong Q figures makes Poddar Pigments a SAFE BUY @ CMP of 48 Rs for decent returns in medium to long term. The stock has definitely the potential to double at least in next 8-9 months duration visualizing an EPS of 12+ this FY. If the company continues to perform well as shown by its profits & earnings, the stock is a hold for 2-3 years term for further strong gains.
Monday, August 23, 2010
MANJUSHREE TECHNOPACK LTD - Buy !
Business : Ever wondered who is behind designing and packaging jars/containers for Horlick, Bournvita, Boost, Tang, Vicks, Kissan ketchups, Kinley/Limca/Fanta & coca cola beverages etc ???
Today, I bring to you another multibagger in the making- MANJUSHREE TECHNOPACK LTD - a recenlty listed Bangalore based packaging solutions provider with an experience of over two decades in providing its customers with cutting edge plastic packaging solutions. Founded in 1977 by Vimal Kedia as a Umbrella manufacturing company, Manjushree forayed into manufacturing of Plastic Flexible packaging in 1984. The company has answer for every packaging ask - Be it Preforms, Pet Jars and Bottles to Retortable Oxygen barrier Multilayer containers. Today, Manjushree is the largest converter of PET and Preforms in India with an installed capacity of 30,000 MTPA and caters packaging solutions to more than 60% of FMCG clients. We all know that PET containers are not that cheap in market and hence arose a need to develop a container with the attributes of PET, but at a lower cost. MT rose to occasion and came out with a breakthrough innovation - Polypropylene (PP) containers - offers a balance of clarity, impact strength and cost. MT is the pioneer of PP ISBM technology in India.
Financials : For FY2009-10, the company declared a topline of 152.5 crores (35% up from FY09) and net PAT of 10.57 crores (up 41% from FY09) with annualized EPS of 7.80 (whopping 41% up from FY09). The company continues further to declare outstanding results for Q1FY2011 – net Profit of 59 crores (62% growth over Q1 last FY) and an EPS of 3.88. Looking at the organic & horizontal volume expansion with expanding FMCG sector – this company is clearly heading for an annualized EPS of more than 14 in this FY itself. At current price of 68 Rs – this stock is highly undervalued and available at a PE of less than 5. The stock is a MUST BUY and one can expect a huge upside in time to come.
Positives – The company has an outstanding SHP which increased from 54% to 57% now in last 2 years – entrust promoters confidence in the company.
- Manjushree has been growing at CAGR of almost 25% for last 5 years. I can safely visualize this growth rate to continue for next few years based on the aggressive expansions the company has been undertaking.
- MT serves all variety of markets from Spices, Mineral waters to Pharmaceuticals, Liquor etc.
- Manjushree clients include biggies like Cadbury, Heinz, Pfizer, TTK Healthcare, Nestle, ITC, Unilever, PEPSI, Coca Cola, P&G, Bisleri etc to name a few. The list is ever growing ~~~
- MT has opened and is managing the only MUSEUM in India dedicated to packaging - It presents the world of product packaging that spans almost a hundred years. On display are tins, boxes, vanity kits, biscuit boxes, wine bottles, water dispensers and much more. A treat to the eye.
Negatives – None
Conclusion : The stock has corrected a little from its peak of 75 /- this year. Start accumulating MANJUSHREE TECHNOPACK at current price and on dips and I can easily foresee a target of 120-130 in next 8 months estimating an EPS of 14+ this FY. I won’t define a timeline to hold as MT seems to be a giant in the making. This counter looks very strong and the stock is a hold for long term.
Financials : For FY2009-10, the company declared a topline of 152.5 crores (35% up from FY09) and net PAT of 10.57 crores (up 41% from FY09) with annualized EPS of 7.80 (whopping 41% up from FY09). The company continues further to declare outstanding results for Q1FY2011 – net Profit of 59 crores (62% growth over Q1 last FY) and an EPS of 3.88. Looking at the organic & horizontal volume expansion with expanding FMCG sector – this company is clearly heading for an annualized EPS of more than 14 in this FY itself. At current price of 68 Rs – this stock is highly undervalued and available at a PE of less than 5. The stock is a MUST BUY and one can expect a huge upside in time to come.
Positives – The company has an outstanding SHP which increased from 54% to 57% now in last 2 years – entrust promoters confidence in the company.
- Manjushree has been growing at CAGR of almost 25% for last 5 years. I can safely visualize this growth rate to continue for next few years based on the aggressive expansions the company has been undertaking.
- MT serves all variety of markets from Spices, Mineral waters to Pharmaceuticals, Liquor etc.
- Manjushree clients include biggies like Cadbury, Heinz, Pfizer, TTK Healthcare, Nestle, ITC, Unilever, PEPSI, Coca Cola, P&G, Bisleri etc to name a few. The list is ever growing ~~~
- MT has opened and is managing the only MUSEUM in India dedicated to packaging - It presents the world of product packaging that spans almost a hundred years. On display are tins, boxes, vanity kits, biscuit boxes, wine bottles, water dispensers and much more. A treat to the eye.
Negatives – None
Conclusion : The stock has corrected a little from its peak of 75 /- this year. Start accumulating MANJUSHREE TECHNOPACK at current price and on dips and I can easily foresee a target of 120-130 in next 8 months estimating an EPS of 14+ this FY. I won’t define a timeline to hold as MT seems to be a giant in the making. This counter looks very strong and the stock is a hold for long term.
Sunday, August 22, 2010
ORIENT CERAMICS & INDUSTRIES LTD - BUY !
Business : I have been tracking this upcoming giant for some time – a tile manufacturer and walls & floor decorator – ORIENT CERAMICS & INDUSTRIES LTD. OCIL since its inception in 1977 has been at the forefront of innovation in home décor ever since and is the pioneer in the manufacturing of Ultra Vitrified Tiles in India. Under the expert guidance of Mr. M K Daga, the foremost ceramic tile technologist in India, the company has grown strength to strength and has expanded in terms of size, scale, network, product portfolio and revenues. It got listed on the BSE in 1993 and on the National Stock Exchange (NSE) in 2007. For the first time, an Indian company has hired a European Designer to unleash next generation innovative tile suits. OCIL manufactures one of the widest range of Non-Vitrified, Vitrified, Ultra Vitrified and 3rd Fired Decorative Tiles for walls, floors & facades. Starting with an initial installed capacity of 4,000 TPA in 1977, the company’s production capacity has grown multifold and stands at 220000 TPA today.
Financials : For FY2009-10, the company posted revenues of 269.75 crores (up 13% from FY09) and PAT of 11.46 crores (up 80% from FY09) with annualized EPS of 10.88 (up 80% from FY09). The company continues its fairy tale declaring outstanding results for Q1FY2011 – net Profit of 5.31 crores (whopping 249% growth over Q1FY2010) and an EPS of 5.04 (250% zoom over Q1FY2010). Looking at prolific success of its newly launched decor ranges – Europa and Stiler – the company is heading for an annualized EPS of around 18+ in this FY itself. At current price of 85 Rs – this stock is seriously undervalued and available at a PE of around 5. The stock is a sure shot buy and one can expect a huge upside in time to come. The downside looks limited.
Positives – The company has an outstanding SHP which increased from 70% to 74% now in last 8 years – speaks volumes of promoters confidence in the company.
- OCIL clientele in the real estate development space includes biggies like DLF, Unitech, Parsvnath, Shobha Developers, Rahejas, L & T, Rites, CPWD, MES, AAI and several medium scale builders.
- Orient products have been extensively used in the construction of the prestigious Rashtrapati Bhawan in addition to beautifying structures like India Habitat Centre (New Delhi), Delhi High Court, Kolkata Airport, DMRC Stations among others.
- Orient Tiles client base is not only found in India, but are also spread across Europe, South East Asia, Middle East and the SAARC countries.
Negatives – None.
Conclusion : Start accumulating ORIENT CERAMICS & INDUSTRIES LTD at current price and on dips and I can foresee an EPS of 18 or more this FY. Hold the stock for 2-3 yrs timeline for 250-300% gains. This stock is a MUST in your portfolio and could be held even for long term.
Friday, August 20, 2010
TT Limited - A Giant in the Making - BUY Now !
Business : Jockey (Page Industries) and VIP (VIP Industries) are known to all! But today I bring you another dark horse in this garment vertical – TT Limited. A 60 year old flagship company of T.T. Group, TT Ltd. is a self contained textile producer and garment manufacturer. TT Brand is a popular innerwear brand in Northern India and a household name for various consumer products as well as Industrial products in India and in more than 30 countries of the world. The Company has recovered smartly from deep recession of 2008-09 and registered a turnover of 353 crores (45% higher than FY2008-09) and a net profit of 10.47 crores for FY2009-10 with an annualized EPS of 4.87. Continuing on the exponential growth track, the company recorded highest ever profit for its June2010 Q - a topline of 113.99 crores (75% growth over June09 Q) and a bottom-line of 4.33 crores (1700% growth over June09 Q). Therefore, with an exponential growth drive and a June Q EPS of 2.02 ,one can easily forecast current FY annualized EPS to be 8 or more. At a price of around 38 /- currently, the stock is available damn cheap at PE of less than 5 and is a MUST BUY !!
Expansion Spree: The Company is expecting to grow its garments business by 100% this FY and other business segments like yarn and fabric at normal 20%. Overall for FY 2011, the Company is projecting a growth of 40% in turnover and profits. The Company launched 51 new products under its innerwear and casual wear segment in March and is aggressively growing its dealer network. Further a 100% increase in advertisement budget has been made to increase the brand equity of its household brand TT. The firm has chalked out a Rs 300 crores expansion plan for over the next 2-3 years. Apart from textiles, the Company plans to increase its presence in the “Clean Energy” segment by expanding its wind power capacity. However the biggest focus of company would be on its garments business under the brand of TT. Further a 100% increase in advertisement budget has been made to increase brand equity of its brand TT. The Company has also made a foray in value added organic products. It has got certification from Control Union, Europe and is exporting organic yarn in a big way. Further it has currently introduced range of organic innerwear - GREEN VESTS & BRIEFS for the first time in India. It also now plans to diversify its knitwear markets to Middle East and Africa where product requirements are similar to India.
Positives : The company has very strong SHP with promoter stake constantly rising from 35% to 53% in last 8 years. I don’t need to say more on the promoter’s trust and confidence in the company.
- In last 2 years company has not increased its paid up equity share capital.
- TT is a "Only cotton" Company and produces its own in-house Cotton yarn and fabrics.
Negatives – I can’t think of any except a healthy competition from Jockey & VIP brands.
Remark : Start accumulating TT Limited between 36-40 range and I can see sure shot FY11 earnings of 8 EPS. That suggests a target of around 80- 100 in another 10 months time. The way this company is expanding its not far when we have another VIP in the making and the stock could be held for 2-3 years timeline for a 3-4 bagger returns. It’s a stock to buy and hold for long term.
Expansion Spree: The Company is expecting to grow its garments business by 100% this FY and other business segments like yarn and fabric at normal 20%. Overall for FY 2011, the Company is projecting a growth of 40% in turnover and profits. The Company launched 51 new products under its innerwear and casual wear segment in March and is aggressively growing its dealer network. Further a 100% increase in advertisement budget has been made to increase the brand equity of its household brand TT. The firm has chalked out a Rs 300 crores expansion plan for over the next 2-3 years. Apart from textiles, the Company plans to increase its presence in the “Clean Energy” segment by expanding its wind power capacity. However the biggest focus of company would be on its garments business under the brand of TT. Further a 100% increase in advertisement budget has been made to increase brand equity of its brand TT. The Company has also made a foray in value added organic products. It has got certification from Control Union, Europe and is exporting organic yarn in a big way. Further it has currently introduced range of organic innerwear - GREEN VESTS & BRIEFS for the first time in India. It also now plans to diversify its knitwear markets to Middle East and Africa where product requirements are similar to India.
Positives : The company has very strong SHP with promoter stake constantly rising from 35% to 53% in last 8 years. I don’t need to say more on the promoter’s trust and confidence in the company.
- In last 2 years company has not increased its paid up equity share capital.
- TT is a "Only cotton" Company and produces its own in-house Cotton yarn and fabrics.
Negatives – I can’t think of any except a healthy competition from Jockey & VIP brands.
Remark : Start accumulating TT Limited between 36-40 range and I can see sure shot FY11 earnings of 8 EPS. That suggests a target of around 80- 100 in another 10 months time. The way this company is expanding its not far when we have another VIP in the making and the stock could be held for 2-3 years timeline for a 3-4 bagger returns. It’s a stock to buy and hold for long term.
Thursday, August 19, 2010
SIMRAN FARMS - Buy Now !!
Business : Simran Farms is an Indore based company engaged in Poultry vertical. The company is growing thick and fast as we see March 2010 turnover is more than 136 crores. On an equity base of just 3.8 Crore company the firm has posted an EPS of Rs.9/- There are not many listed players in Poultry segment other than the known Venkys India and Srinivasa Hatcheries. If we analyze company’s recent performance, an EPS of 7.35 in FY09 has grown leap & bounds to an EPS of 9.19 in FY2010. Icing on the cake, latest June 2010 quarter EPS of 5 makes me feel confident of FY11 earnings of nothing less than 16 EPS. Currently hovering around 54-58 Rs range, this stock is available at a PE ratio less than 4 and is dirt cheap by all means - a MUST buy !!
Positives : Since listing in 2002, Simran farms have a very strong SHP (share holding pattern) with promoter stake around 36%. I foresee increase in promoter’s stake in time to come considering company’s prolific growth.
- In last 2-3 years company has not increased its equity share capital and has no plans in near future too.
Negatives – Company does not have a website but I guess the day is not far when the company will officially launch its website. It does hinder some transparency from company management side but its earnings growth speaks volumes.
- Please note that Poultry stocks are cyclic in nature because every 3-4 years, one or the other kind of chicken flu arises & that’s the time to get out of poultry stocks!!
Remark : Start buying SIMRAN FARMS between 50-60 range and I can see sure shot FY11 earnings of 16 EPS. That suggests a target of around 140- 160 in another 8-10 months. Depending upon future performance which looks promising this stock could be held for 2-3 years timeline for a 3-4 bagger returns. I strongly believe that Simran can turn out to be next Venkys India in the making.
Positives : Since listing in 2002, Simran farms have a very strong SHP (share holding pattern) with promoter stake around 36%. I foresee increase in promoter’s stake in time to come considering company’s prolific growth.
- In last 2-3 years company has not increased its equity share capital and has no plans in near future too.
Negatives – Company does not have a website but I guess the day is not far when the company will officially launch its website. It does hinder some transparency from company management side but its earnings growth speaks volumes.
- Please note that Poultry stocks are cyclic in nature because every 3-4 years, one or the other kind of chicken flu arises & that’s the time to get out of poultry stocks!!
Remark : Start buying SIMRAN FARMS between 50-60 range and I can see sure shot FY11 earnings of 16 EPS. That suggests a target of around 140- 160 in another 8-10 months. Depending upon future performance which looks promising this stock could be held for 2-3 years timeline for a 3-4 bagger returns. I strongly believe that Simran can turn out to be next Venkys India in the making.
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