Monday, June 28, 2010


Sukhjit starch and chemicals is one of the largest
manufacturer of starch and starch derivatives in 
India. Company has four units one each in Punjab,
Andhhra Pradesh,West Bengal and Himachal. 
Company’s products are widely used in industries
like Confectionery, Bakery ,Preserved food,
Baby foods,Ice creams..etc. All of these
industries are closely related with direct
consumer spending. Company is a preferred
supplier of well known firms like Wrigley
India Ltd., Dabur India Ltd., Perfetti
India Ltd.,Godrej,  Parle, and  Cadbury.
Citing the vast scope in consumer industries,
company is now planning to start another
Greenfield plant near the existing site at
West Bengal with a capital outlay of Rs.50 Cr.
Entire amount for the expansion will be funded
through term loans and internal accruals.
For the last financial year company posted a
turnover of Rs.259 Cr and a net profit of
Rs.15 Cr with an EPS of Rs.20/-. Sukhjit also
declared a dividend of 60% for its Rs.10/-
FV shares.It is expected to perform even
better in coming years. Open market purchase of
shares by promoters are also a positive factor.
A decent medium to long term BUY at current level
of Rs.169/- which is at a price earning multiple
of 8.5. Keep an eye on maize prices which is the
raw material of the company and prone to
wild fluctuations  due to monsoon effect. 


  1. Dear Valupick Sir,

    U already commented on anil products for my query previously.

    But anil products vs Sukhjit. which gives good return over 4-6 years :)

  2. What's your opinion on Universal starch chem.

  3. Dear Mahesh
    Anil product is equally good,I have just considered the mentality of management in rewarding share holders through Bonus and dividend while comparing both these companies.

  4. Hi Valuepick,

    What's your take on Edserv?
    I found it interesting because of Suresh Kalpathi invested into it and the education sector which it caters to ?
    Some people also say it is the next Educomp in making....
    Please advice ?


  5. Company is over 50 year old,with consistent dividend and bonus track record.Major player in Indian starch market.large expansion plan on the anvil with no equity expansion.Very good pick for value investor

  6. Valuepick sir,

    Thanks so much, i learned one more lesson : "I have just considered the mentality of management in rewarding share holders through Bonus and dividend while comparing both these companies. "

    Which i didnt took in to account while doing R&D of stock.

    Thanks once again.

  7. Dear Valuepick Sir,

    I wanted to know your view on "JOCIL LTD"

    Thank you.

  8. Dear Mahesh

    I am not tracking this one ,sorry..

  9. KOPRAN bse code 524280@42/= is a great turnaround story of 2010.Exactly the same happend with LUPIN when it was quoting at 62/= way back in 2002 and looking at the low price I bought the stock in huge quantity.Lupin is now trades at 1900+ ex 1:1 bonus.I feel same thing is happening here with KOPRAN and looks super multibagger from hereon.In fact,it is another LUPIN in making.Good opportunity to grab such stocks and held on for super duper profits.Cheers.



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