Saturday, May 28, 2011

TASTY BITE ETABLES - TIME TO RE-ENTER






Tasty Bite Etables is one of my old recommendation @ Rs.165 on 27th February 2010 . Thereafter it touched a high of Rs.346/- on 19th July 2010 and now quoting around Rs.145/-.  Everything was negative for this company in last year .This list includes , sharp rise in raw materials ( onion and other vegetables ) , unfavorable exchange rate of currency, bad financial conditions of economies to where its products are exported ..etc. Now almost all these factors are slowly  changing in favor of the company. In last quarter company shows some early signs of revival. Tasty bite is also doubling its capacity now and capex is through internal accruals and debt.This is the right time to re-enter in Tasty Bite with a three year view .Stock is expected to appreciate more than 100 % in the mentioned time frame.

For more details about this company , Read the old posting HERE

Wednesday, May 25, 2011

INFRASTRUCTURE STOCKS

Smart investors are always making money from stock market by investing in stocks of out of favor sectors and waiting patiently. Such a contra view is not easy for many of the investors because they are influenced by the surroundings and the opinions of analysts playing in popular business channels. These analysts are generally finding value in any stock only when it touches new highs.I think , infrastructure stocks are currently going through such a phase - neglected by every one. Long term value investors can by good stocks from this sector now .But one thing to remember ,buy only companies with strong execution capacities and lower debt.


Tuesday, May 24, 2011

DFM FOODS LTD - RESULT UPDATE

I have recommended a BUY on DFM FOODS @ Rs.48/- ( Old Report HERE) which is currently trading @ Rs.126/-. Yesterday company reported good  performance in fourth quarter.Its turnover in fourth qtr is Rs.35.14 Cr v/s Rs.20.45 an  increase of 72 %  and net profit jumped to Rs.2.58 Cr v/s Rs.64 lac. In the full year ,company posted a sales of Rs.120 Cr and a net profit of Rs.8.32 Cr . On an equity base of  Rs.10 Cr  full year EPS is Rs.8 + .Company showing overall improvement including margins. One may hold at current level and BUY on declines below Rs.100/-

Friday, May 20, 2011

APW PRESIDENT SYSTEMS - A DARK HORSE IN MAKING ?












APW President Systems is a mid size IT  Infrastructure company manufacturing standard and customized enclosure systems.Other than IT,company's products are used in sectors like Telecom and Electronics.Company having three manufacturing facilities in India located at Pune,Bangalore and Puducherry.Company's main products includes Server Rack's ,Networking Racks,Industrial Cabinets,Street Side Enclosures..etc.Company also exporting its products to various countries includes USA ,UK ,Australia ,Middle East countries..etc. APW manufacturing these products in Standard size and Customized form.APW entered various technical and marketing alliances with various foreign companies like Avocent Corporation,United Technologies,Vette Corp...etc.Company's products have good prospects considering
Indias untapped rural market for IT infrastructure ,Power..etc.                                                       
                                                                             In a landmark development which may change the entire fortune of the company ,recently French major Schneider Electric bought 75 % of APW Presidents systems from its Indian Promoters and through open offer. This deal happened @ Rs 195/- per share. Even if Schneider Electric made aggressive acquisitions in India in last few years - which includes part of the security solutions business of Zicom Electronics and Digilink business of  Smartlink Networks - acquisition of APW is the only buyout of a listed company . In all other cases Schneider bought only the assets of listed companies and not the company in full.There may be even a chance of integration of these companies in future .In such a case , either a de-listing offer for APW or a merger of other companies with APW can be expected. Even if such an integration not happened , Digilink's requirements for enclosures may be sourced from APW , being both companies are owned by the same parent. The money power ,managerial expertise and large share of business of Schneider  will surely benefit APW going forward.The old management including MD steps down and new nominees of Schneider appointed this week in APW.Company posted a loss in December qtr and back to black in latest March qtr. I think ,the loss posted in December was the effect of a balance sheet cleaning just before changing hands. Open offer by Schneider was @ Rs.195/- and and its share price moved from Rs.135/- to Rs.195/- on the news of Schneider's acquisition . Now it corrected to Rs.140- 145 level.Considering the strength of the MNC  parent  and its aggressive growth plans , APW President Systems may turn as a dark horse, provided that the parent company is not doing any foul play to de-list it at cheaper rate. Chances are very rare for such a play considering the reputation of Schneider. CMP is around  Rs. 145/-



Wednesday, May 18, 2011

OPTO CIRCUIT - RESULT UPDATE

I have recommended a BUY on Opto Circuit @ Rs.260/- ( Old Report HERE) which is currently trading @ Rs.295/-. Yesterday company reported  robust performance in fourth quarter.Its turnover in fourth qtr is Rs.545 Cr v/s Rs.335 Cr and net profit jumped to Rs.111 Cr v/s Rs.66 Cr. In the full year ,company posted a sales of Rs.1077 Cr and a net profit of Rs.260 Cr . Management again proved its investor friendly approach by declaring a dividend of  45 % . A Superb performance again .HOLD it

Sunday, May 15, 2011

PUNEET RESINS





Puneet Resins is Rishiroop group company manufacturing various types of Rubber chemicals and PVC Compounds and different forms of rubber.Company manufacturing the products under three brand names 'Vulcanol' ,'Vinoprene' and 'Vinoplast'.The first one  Vulcanol is a Vulcanised Vegetable Oil used in industries like Rubberised fabrics, Rubber threads ,Gaskets...etc.The next two are NBR/ PVC blends used in the manufacturing of various types of Hoses,auto parts..etc.Company's performance is improving in recent times and it is expected to post its best ever result in this FY. For the 9 months ended December ,company posted a turnover of Rs.37 Cr ,net profit of Rs.3.65 Cr and an EPS of Rs.7 . Share price is currently trading around Rs.34/- with a  P/E multiple of just 4 on the expected full year EPS. If the management shows better corporate governance ,there is fair chance for a re rating from current level.

Wednesday, May 11, 2011

GEI INDUSTRIAL SYSTEMS - EVENT UPDATE




I have recommended a BUY on GEI Industrial Systems @ Rs.120/- on 28th June 2010 ( Old Report HERE).In an important development ,today company signed an agreement for technology tie- up with Switzerland based Innospin .This will help the company to produce air cooled condensers for power plants upto 5000 MW capacity in 2013 onwards. GEI is the pioneer in this technology in India and the new agreement is a landmark development for company's next phase of Growth. Currently it is trading @ Rs.204/- . A good one for long term Investors - HOLD it.

Tuesday, May 10, 2011

SACHETHA METALS - CATCH IT







Sachetha Metals is a small company manufacturing Kitchen utensils,Non stick cookware,Kadai..etc.
For the full year ended March 2011,Company posted a turnover of Rs.52 Cr v/s Rs.45 Cr and a net profit of Rs.92 Lac v/s Rs.62 lacs. At present most of the company's products are low margin items but there is enough scope for expansion into related products with higher margin.Now company is planning to start a manufacturing facility for Aluminium sheets and coils.This backward integration will help the company to save margins to an extent.For the last few months ,promoters are actively purchasing shares from open market .Risk takers may BUY  it at CMP  around Rs.22/-

Saturday, May 7, 2011

GANDHIMATHI APPLIANCES - REPEAT









I have recommended GANDHIMATHI APPLIANCES  for high risk takers @ Rs.73 on 28th August 2010.( Read it HERE) .In my old post ,I clearly mentioned that the main concern about this company is the attitude of its promoters and not its business prospects. Gandhimathi has posted two quarterly results thereafter.Now I feels that the management is  realizing  the importance of a fair corporate governance,transparent accounting ,concentration in business- to create wealth.In recent numbers ,company has shown excellent growth  .( I still feels they hide something in their old results.) .It is known that company is also launching more products and expanding its reach. The brand value of their brand 'Butterfly ' is immense ( at least in South India) and the opportunities are unlimited for their products in a country like India with huge population. Company is going to declare  its March quarter  result on 12th May  , which is  expected to be a  continuation of the strong growth shown in last two quarters.Even after more than 150% rise over the previously recommended price , still there is scope for multibagger  kind appreciation from current level of Rs. 194/-

Wednesday, May 4, 2011

NITCO LTD - RESULT UPDATE

For the quarter ended March 2011, Net profit of Nitco rose 346.00% to Rs 11.15 crore in  as against Rs 2.50 crore during the previous quarter ended March 2010. Sales rose 84.56% to Rs 191.94 crore in the quarter ended March 2011 as against Rs 104.00 crore during the same period  ended March 2010.For the full year ended March , Sales rose 58.94% to Rs 640.50 crore against Rs 402.97 crore and net profit jumped to to Rs 26.29 crore from a loss of Rs.8.71 crore. Full year EPS is Rs.8.20 . Nitco was earlier recommenced @ Rs.62 and currently trading @ Rs.64/- .HOLD It

Monday, May 2, 2011

DE- NORA(INDIA) - RESULT UPDATE

I have recommended a BUY on DE- NORA(India) Ltd on 25th December 2010 @ Rs.79/- ( Old posting HERE ) .Currently it is quoting @ Rs.105/- .In march qtr ,company posted a turnover of Rs.6 Cr v/s Rs.3 Cr and a net profit of Rs.1.25 Cr v/s a loss .Order book position is also showing improvement over last year.Company also declared a dividend of  50% on FV. 10 shares .HOLD it for further gains.

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