Sunday, May 13, 2012

NITTA GELATIN INDIA LTD - BACK TO BLACK






Nitta Gelatin( Formerly Kerala Chemicals) is a 46 % subsidiary of Japan based Nitta Glatin Inc.Kerala State Industrial Development Corporation (KSIDC) is the joint promoter with 34% stake .Company is manufacturing Edible and Pharmaceutical grade Gelatine,Ossein,Di Calcium Phospate ..etc.Company along with its subsidiary having three manufacturing facilities in India – Two in Kerala and One in Maharastra.Its products are mainly used in the processing of Confectionery,Diary products ,Beverages and for manufacturing gelatine Capsules.Last year company diversified into value added products like GELIXER COLLAGENPEP , SEEDAID, NUTRIGOLD, MEAT MEAL, CHITOSAN..etc . Due to unprecedented rise in its raw materials  (Crushed Bone and Hydrochloric Acid ) and increased advertisement cost  for  new products, company reported lower profit  in last year .But now it is slowly coming out of red and posted good profit in latest quarter by passing on its increased raw material cost to consumers and successful diversification into value added products..Due to pollution issues chances of substantial  new capacity addition is very low in the country.For the latest quarter ended March 2012, Nitta posted a turnover of  Rs.68.73 Cr v/s Rs.49 Cr and a net profit of Rs.4.57 Cr (excluding other income) v/s a loss of Rs.1.67 Cr .For the full year Consolidated EPS is Rs.5.58/-. If company can exhibit the same performance shown in latest quarter,chances for strong re rating can’t be ruled out for this investor friendly company from current level of Rs.87/-

52 comments :

  1. Sir,

    What's your view on Sterling Bio for long term ?

    Regards,
    Kumaran

    ReplyDelete
  2. Bit Skeptical on Sandesara Group

    ReplyDelete
  3. sir your views on jindal poly, the buy back is over can we see some up views , your thoughts pls.....

    ReplyDelete
  4. Dear Sir
    Veljan Denison is at 52 week low. Is there any change in fudamentals.

    ReplyDelete
    Replies
    1. Last qtr was not good due to over all sluggishness in user industries.

      Delete
  5. sir

    any call on orchid chemicals, gei industrial systems and nile after the dismal results and deep correction.can one buy it now??

    ReplyDelete
    Replies
    1. Orchid - Disappointing performance
      Gei - In line with expectation with slow Industrial growth mainly in Power and Refining Sector.

      Nile- Buy only after the exit of GMM Pfudler

      Delete
    2. Sir,

      Why do you prefer to buy Nile only after the exit of GMM Pfaudler?

      Delete
  6. What is your advice on Mercator lines?

    ReplyDelete
  7. Dear sir,

    Whats your view on bharat gears ? still its a good bet to buy at CMP ?

    Thanks
    Vishal

    ReplyDelete
    Replies
    1. Dear Vishal

      I don't think there is any fundamental change in Bharat Gear in last two weeks

      Delete
  8. What is your take on Orchid Chemicals. Remember you had recommended it as a buy. Do you suggest a hold or sell in this case! The outcome is bad!

    ReplyDelete
    Replies
    1. Recommended @ Rs.161/- and later touched a high of Rs.320/- and now @ Rs.127/-. Recent performance is disappointing and company could not meet its guidance.

      Delete
    2. Should we hold Orchid Chemicalsnow or should we sell it at loss?

      Delete
  9. dear valuepick ji, your views on noida toll bridge and bliss gvs pharma please....
    thanks in advance
    senthil

    ReplyDelete
  10. Dear Senthil

    Not tracking Noida Toll,more than once commented about Bliss GVs.Pls search

    ReplyDelete
  11. sorry and thank you valuepick ji

    ReplyDelete
  12. sir ur view on prajay engineers syndicate..?

    ReplyDelete
  13. HI valuepick

    whats the reading for aries agro results and ur valuable recommendation?..

    rgds
    zain.

    ReplyDelete
    Replies
    1. Not upto the expectation but it already discounted in CMP

      Delete
  14. How about Elder Healthcare ? It has already announced its result . Is it a buy a CMP .

    ReplyDelete
    Replies
    1. Performance was not good due to higher interest cost .May shift to Granules or Igarashi Motors.

      Delete
    2. sir u have any views on clariant chemicals

      rgds

      srj

      Delete
  15. do you have any comments on the below report

     Even though significant headwinds remain in the form of policy inaction, high current deficit and the weak rupee, high fiscal deficit and resurgent inflation, it appears that a few things have improved marginally.
     Recent decline in commodity prices is one among them and it is good for Indian macro environment.
     Postponement of GAAR provision and the possibility of change in some of the onerous conditions (the burden of proof on tax payers) is another positive, which would reduce foreign investors’ concerns slightly.
     At the current levels, it seems that the market valuation has de-rated to 12.5 P/E multiple and 2.1 times of P/BV (price to book value). At this level, it seems that many of the negatives have been discounted.
     Considering current P/E, P/B ratio and implied earnings growth vis a vis risk free rate of returns, the market is unlikely to drift down heavily and the maximum downside may be 3-5%.
     Target for the Sensex for 2012 remains at 18500 before the year end.
     Though the Sensex is at 16000 now, it is actually close to 13000 from the FII’s perspective when adjusted for USD, because of the weakness of the rupee.
     In the current scenario, stock selection is the key to outperformance. The focus is on companies with good execution, cash generation, good returns ratios and no management related concerns.
     For stock selection, three strategies can be followed- good stocks at reasonable prices, likeable laggards; market recovery plays.
     Hero Motocorp, Tata Motors, Idea Cellular, Cairn India and Power Grid Corporation are included in the first category.
     Likeable laggards; these are very good stocks but the current performance is not up to themark. L&T, NTPC and SAIL are included in this category.
     Third category is meant for investors who believe that the market is bottomed out and would want to play the recovery. For such investors, ICICI Bank, State Bank of India and Wipro are good plays.

    ReplyDelete
    Replies
    1. Generally not tracking large caps.In my opinion , inability of govt to take decisions is the biggest negative at this point.

      Delete
  16. dear sir,
    your respected comment about LGS global, company having all the good thing including great result recantly, is correcting only.
    thanks

    ReplyDelete
    Replies
    1. No clear Idea about the credibility of the promoters of LGS

      Delete
  17. Do you track la-opala. It has announced for considering dividend on 21st May. In spite of this good news the stock is ham-erred today. Is it operators play or something really wrong with the company.

    Deepak
    deep275@gmail.com

    ReplyDelete
  18. SIR UR COMMENT ON CENLUBE

    ReplyDelete
    Replies
    1. No change in my previous opinion on Cenlube .Recommended at Rs.20 and now at Rs.32 -, a HOLD for me.

      For old posting

      http://value-picks.blogspot.in/2010/06/cenlub-industyries-keep-watching.html

      Delete
  19. Dear Sir, Any call on PG foils? Last qtr was not up to mark, But how is the fundamentals of the company?

    ReplyDelete
  20. Sir, any news about schneider results, any date

    ReplyDelete
  21. What is your view Piccadily Agro at present.

    ReplyDelete
    Replies
    1. Positive on all sugar stocks for long term

      Delete
  22. Dear V.P

    Thanks for your views.

    Please give me your views on GATEWAY DISTRIPARK, PANASONIC ENERGY,CLARIANT CHEMICALS......

    ReplyDelete
  23. Hold Clariant,Neutral on the rest

    ReplyDelete
    Replies
    1. Thanks VP ONE MORE REQUEST How do you find Navin Fluorine 237 EPS/ 400 BV/ 17 Rs.dividend but price is moving up at all. Can 1 buy in quantity with time frame of 2 yrs

      Delete
  24. Dear sir,
    Pls comment on fairfield atlas post result
    Regards

    ReplyDelete
  25. Is is time to revisit VIP industries

    ReplyDelete
  26. Dear Deepak

    I think better stocks are available

    ReplyDelete
    Replies
    1. Thank you Sir. I was just getting attracted to its 52wk low price . Its out of my radar now. Thank you so much.

      Delete
  27. ValuePick,

    Any view on India Gelatin...Will it follow Nitta Gelatin???

    Thanks
    Amit Kumra

    ReplyDelete
  28. ValuePick,

    Any view on India Gelatin...Will it follow Nitta Gelatin???

    Thanks
    Amit Kumra

    ReplyDelete

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