Tuesday, October 30, 2012

HERITAGE FOODS ,NARMADA GELATINE ,BAMBINO AGRO - UPDATES

HERITAGE FOODS
This stock recommended as a buy below Rs.200/- .Today hits 52 week high @ Rs.394 and closed @ Rs.376/-, reported September quarter result as follows:




Related Readings :
Link -1

Link-2

Old posting HERE

NARMADA GELATINE
This stock recommended @ Rs.95/- and currently trading @ Rs.127/-, reported September quarter result as follows:


Old Posting HERE

BAMBINO AGRO INDUSTRIES LTD
Recommended @ Rs.40/- and currently trading @ Rs.54/-.Today company filed its latest share holding pattern to BSE .In September quarter ,holdings under promoter category increased slightly which currently stands @ 74.32 %

Old posting HERE




Monday, October 29, 2012

DE-NORA INDIA --- RESULT UPDATE

I have recommended a BUY on DE- NORA(India) Ltd on 25th December 2010 @ Rs.79/- ( For Old posting HERE ) .Currently it is quoting @ Rs.163/- .In September qtr company reported good numbers as follows   .HOLD it for further gains.












Saturday, October 27, 2012

EASTERN GASES - CHANGING POLICIES , CHANGING FORTUNES ?









Changes in government policies always impacting industries and companies.Eastern gas is a stock we discussed  last year almost at the current price level.Since the policy of government on LPG subsidy changed substantially and some positive developments already happened in the company ,looking into it once again.

                                                 Reduction in then number of subsidized cylinders giving more opportunity to private sector players in this sector .Eastern Gases ( BSE Code 590080) is one of the very few listed companies from this industry and it is an important point to note that this company increasing  profits in past five consecutive years even in the previous unfavorable business environment.This Kolkata based company engaged in the distribution of commercial LPG in 17 and 33 kg cylinders.At present company supplying Cylinders in West Bengal, Bihar and Orrisa from its own bottling plant situated at Durgapur under the brand name ‘EASTGAS’ .Company also supplying bulk LPG for industries .Recently company started its first auto LPG dispensing station in West Bengal and planning to start a pan India network for the same.In the changed environment company also studying the viability of home cylinder distribution too  not only in Eastern region but in south and Central India .For expanding their business  they are now going to start few LPG bottling plants in this area .For the FY 2012 ,Company posted a turnover of Rs.135 Cr which is more than a 9 fold rise from FY 2008. The changed government policy is expected to bring a better level playing field for private sector players compared with the previous situation and in future we can’t rule out a chance for complete cost based price fixing policy as it happened in the case of Petrol few years back. At present subsidized  home cylinders are illegally diverted for commercial purpose in a big way .As a next step government is expected to introduce a  system for directly crediting the subsidy amount to the bank account of consumers .This method will put an end to the diversion from home to commercial use .In such a situation people will be forced to use home cylinder only for that purpose and commercial cylinder for commercial purpose .Such a situation  will definitely help private players who already established infrastructure facilities for distributing commercial cylinders.

This is a stock for investors with enough patience at CMP of Rs.19

Link to company website HERE

Link to latest Annual Report HERE 
 
SHRI MATRE POWER & INFRASTRUCTURE LIMITED (FORMERLY -

SHRI SHAKTI LPG LTD ) BSE CODE - 531322



Another listed company from this sector is Shree Sakthi LPG which distributed LPG Cylinders under the brand name Shakti Gas earlier .They almost stopped the distribution activities due to the subsidy issue ,but still maintaining all infrastructure facilities .We can’t rule out re starting of their operations going forward.Recently they decided to write off all their losses by reducing the face value of the stock.An interesting point here is that this company is still  a debt free one.This stock is currently trading around at a throw away price of below  Rs.2 /-.I have not dig deep into this stock and mentioning it for your information purpose only ,hence ensure necessary due diligence before acting on.One more point - both stocks are illiquid.

Link to company website HERE

Link to latest Annual Report HERE 

Thursday, October 25, 2012

GRANULES INDIA / HEG LTD - RESULT UPDATES

 GRANULES INDIA
 
Granules India initially recommended at Rs.79/- ( Old posting HERE) and currently trading around Rs.190/-

Today company declared good results with a rise of more than 200 % in net profit compared with same period last year. Recommending to hold the stock for long term

For details and management's comment ,click HERE
For latest information on company's joint venture with Ajinomoto Omnichem ,Click HERE


HEG LTD 

HEG Ltd earlier  recommended at Rs.218 /- ( Old posting HERE) and currently trading around Rs.232/-
Company posted 165 % jump in next profit in latest September quarter,Recommending to hold it  for long term






GODREJ INDUSTRIES - BOOK PARTIAL PROFIT

I have recommended a BUY on   Godrej Industries @ Rs.186 /- on March 20 ,2011(Old Posting HERE)  .Currently stock is trading near to its  52 week high @ Rs.310 , an appreciation of about 70 % .Those with low risk appetite can book partial profit and others can still hold the same for long term.

Wednesday, October 24, 2012

INDO AMINES LTD - KEEP IT IN YOUR RADAR





Indo Amines Ltd ( IAL - BSE CODE 524648)  may be an unknown stock to many of you .Even this stock  is not a widely discussed one  , this  company is a silent performer showing steady business growth for the past many years.IAL originally incorporated as Techno chemical industries in 1979 and later changed its name to the present one.This Thane based company manufacturing various types of  Specialty,Fine and Performance chemicals finding applications in Petroleum industry,Agrochemicals,Pharmaceuticals ,Construction and Fertiliser.Company operating three manufacturing facilities in India at Thane,Baroda and Mumbai.It is one of the largest producers of fatty amines in India..Its turnover grow  from Rs.85 Cr to Rs 200 Cr during 2008-1012 period.But the growth in bottom line was slow compared with top line growth. The following points demanding a close look at the company now even if it is trading at its 52 week high price. First one is , company’s plan to concentrate in high margin products  including some new additions to its existing products list .Effect of this initiatives already started reflecting in first quarter itself where its net profit improved 100 % compared with last year same period.Second is ,promoters of the company now subscribing  4300000 warrants at a price of Rs.17/-  and also merging  some of their privately held companies into this listed entity.These process will increase their stake in the listed company from the current level of 56 % to near the maximum permissible level  . Excluding this ,promoters already hiked their stake in recent past very aggressively through preferential allotments. (For details ,click HERE) Another point is ,In a recent filing to BSE, (To read ,click HERE) company informed their decision to set up a new plant at Dhule, Maharastra with a capital outlay of  Rs.20 Cr .At present company having some debt in its balance sheet but promoters decision to pump more money through equity route will bring down the debt equity ratio going forward.Watching the trend of past few trading sessions ,I feel  some kind of an accumulation is going on in this stock and it is a stock worth keeping in our watch list and high risk investors may even add a small quantity with a long term view.This Rs.200 Cr turnover, dividend paying  company is trading with  a market cap of just Rs 28 Cr  @ CMP Rs.29/-

Link to Company website HERE

Saturday, October 20, 2012

ADITYA BIRLA CHEMICALS - BETTER TIMES





Adiya Birla Chemicals is a member of Aditya Birla Group .This company taken over by Aditya Birla Group  in 2005 and now it is a 51% subsidiary of Hindalco Industries.ABCIL manufacturing inorganic chemicals, like  caustic soda, chlorine, resins , hydrochloric acid, aluminium chloride , bleaching powder ..etc.Its products find applications in sectors like Soaps and Detergents ,Pulp and paper,Textiles ,Water treatment,Dyes and colours ,Aluminium ,Food Processing ,Lubricants .etc .After the acquisition by Aditya Birla Group , company added capacities substantially and also included many new products into its offering.Last year Company completed a large acquisition by buying out Kanoria Chemical’s chloro chemicals division at a cost of Rs.830 Cr.With this acquisition ABCIL’s caustic soda capacity increased  from 1,05,000 tpa to 2,20,000 tpa.Now ABCIL is upgrading the caustic soda plant of this facility by most modern technology with a capital outlay of another Rs.150 Cr . Renovated plant is expected to re-start commercial production in next few months.This new technology will increase capacity and reduce power cost substantially ,which will reflect in margins going forward. Chlor Alkali business is cyclical in nature and it is going through better times . Considering the tight supply demand conditions in favor of Chlor –Alkali producers  ,further price hikes also expected in next few quarters . This company will be one of the biggest beneficiary of the emerging opportunities  in this sector backed by the large capacity and strong management capabilities of Aditya Birla Group. Company raised its debt level to fund the above mentioned large acquisition but a favorable pricing situation for its products is expected support the cash flow going forward. Investors with medium  term view may consider it @ CMP of Rs.89,  and keep a close watch on the price trend of its products.Sock is traded both in NSE and BSE


Link to Company Website HERE

Thursday, October 18, 2012

HONDA SIEL POWER PRODUCTS - BOOK PARTIAL PROFIT

I have recommended a BUY on HONDA SIEL POWER PRODUCTS on October 8,2011 @ Rs.337 .(For Old posting Click HERE) .Yesterday stock hits its 52 week high @ Rs.570 , an appreciation of about 70%. Low risk investors may book partial profit and those with high risk appetite can still HOLD the stock with a long term view.

Wednesday, October 17, 2012

SABERO ORGANICS GUJARAT LTD - RESULT UPDATE

I have recommended a BUY on Sabero Organics @ Rs.55/-(For old report Click HERE) which is currently  trading around Rs.143/-. For the quarter ended September 2012, company posted excellent result .Operating income increased from Rs.105 Cr to Rs.141 Cr  .After a gap of five quarters company back to black with a profit of Rs.4 Cr where it was a loss of Rs.16 Cr in last year same quarter.Under the new management of experienced Murugappa group , company is expected to grow ahead .Recommending to HOLD and those with some risk appetite can even consider a BUY with long term view at CMP of Rs.143/-

Tuesday, October 16, 2012

HIKAL LTD - BOOK PARTIAL PROFIT

I have recommended a BUY on Hikal Ltd  @ Rs.269/- on March 18,2012.( For old Posting Click HERE) .Yesterday stock hits  its 52 week  high of Rs.467 before closing @ Rs.450 ,an appreciation of about 65 % in 7 months . Requesting to  book partial profit at CMP and Hold the rest cost free.

Saturday, October 13, 2012

BAMBINO AGRO INDUSTRIES - REPEAT





Bambino Agro is a stock I recommended last year almost at the current rate.Thereafter company altered its Memorandum of Association to venture into some  un related fields .On the basis of this decision ,later I expressed some negative opinion on this stock.After touching a low of Rs.24 now it recovered and ruling close to its 52 week high price of Rs.40 .Now it is learned that ,even the company altered its MOA, it is not in a hurry to move into these fields and decided to concentrate in its core business.Hence re-looking into this  once again.


 










BAMBINO is a  well known brand with pan India marketing network.Company selling pasta, macaroni , noodles and a number of ready to eat items under the BAMBINO brand . Company producing almost 75 items  from 4 manufacturing facilities. Even this company is in operation for the past many years with a good brand recall ,its financial performance so far not creating any excitement.Higher debt level and a possible conflict of interest due to more entities owned by the same promoters are the key reasons for concern.If the promoters are willing to change their mind there is huge scope for wealth creation in this company .Since they hold almost 75 % stake in it, it is easy to dilute some stake and raise funds to bring down debt burden.Considering the brand value and the premium valuations realised in some private equity deals in food sector  it is not an impossible task. In the past I have recommended two companies which faces same situation ( Butterfly Gandhimathi ( to read click HEREand DFM Foods - HERE ) and later we realised what has happened with a change in the attitude of management .The market capitalisation of both these companies improved multi fold after some minor proactive steps taken by the management of both these companies.Here in the case of BAMBINO too this is very relevant and the same miracle is possible just by some simple initiatives by the promoters.I believe this will happen in future and they will not waste the big opportunity available .In recent times company expanding to new territories  and introducing various new products.To ramp up its sales force, company recruited many employees in recent past. To sell its ready to eat items BAMBINO started to open retail outlets in multiplexes. Earlier company entered into a distribution tie up with Domino's Pizza ( For details click HERE). Even in the financial front too , company improving its performance in past few quarters. For the quarter ended June 2012 net profit rose 91.55% to Rs 1.36 crore as against Rs 0.71 crore during the previous quarter ended June 2011. Company's year ending is in September and it already posted an EPS of Rs.4.8 in nine months  against last full year EPS of Rs.2.34 .I feel , now things are started to move slowly in the right direction.If management is willing to take some steps like reducing debt,increasing corporate governance standards ..etc  ,this stock will be a multi bagger in long term even from its 52 week high price of Rs.40/-.

Disc:I have vested interest in BAIL

LINK TO COMPANY'S RECENTLY RENOVATED WEBSITE  HERE

  


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