Friday, November 30, 2012

DE-NORA INDIA - UPDATE

I have recommended a BUY on DE- NORA(India) Ltd on 25th December 2010 @ Rs.79/- ( Old posting HERE ) .Yesterday stock hits its 52 week high @ Rs.256 /- .Recommending to HOLD the stock.

Saturday, November 24, 2012

EON ELECTRIC - WORTH A BET



 

 
The present form of EON ELECTRIC is the result of two de-mergers during past two years. This company (formerly known as INDO ASIAN FUSEGEAR) sold its Switch Gear business to French electric equipment maker Legrand for a consideration close to Rs.500 Cr in 2010.Later in 2011 ,company de-merged its metering business into another company named Advance Metering Technology.After  both of these transactions company is left with lighting products, wires  and wiring accessories , cables and Fan.Now company is concentrating its efforts to develop many new energy efficient products in these categories.LED lighting products is one among them . Since LED is  not using any  hazardous materials like mercury it is expected to get consumers priority over  CFL  in coming years .For getting advanced technology in this field ,EON already tied-up with one Japanese and another European company operating in this field.Recently company ventured into home automation products with the introduction of modular switches .Company’s R & D division introduced indigenously  developed presence sensor technology based lighting accessories  to save energy.Recently company started production of Lithium Ion Batteries from its newly set up plant in Haridwar. Company is claiming this is the first such manufacturing facility in India to produce Lithium Ion batteries to be used in mobile handsets, laptops, cameras, tablets ..etc which is still now imported from China.Company is expecting to garner reasonable market share in this products based on superior quality over cheap Chinese products.
                                     Even the company not started to show black in its bottom line after the  selling of its Switch Gear division and de- merging of metering  business, sharp improvement is visible in its turnover and reduction in loss in recent times ( See Table below)





Out of the total amount received from the selling of  Switch Gear division, company distributed Rs.10/- per share as special dividend,came out with a  buy back program at a maximum price of Rs.130/- per share and most importantly paid back majority of its  debt.After the scheme of later de-merger ,on a rough estimate company is still with a cash balance over Rs.100 Cr where the  market capitalisation of this company is  is just Rs.48 Cr . I believe the well knitted marketing network and well experienced promoters are two big positive factors for this company .EON having enough cash to utilise the available opportunities and the company is already started its capex .I am expecting  the company can back to black in another few quarters  and at current market price of Rs.30/- it is worth for a bet for investors with some risk appetite.Stock is listed both in NSE and BSE.


Link to Company website HERE
Link for latest Annual Report HERE

Saturday, November 17, 2012

SPAN DIAGNOSTICS LTD - BUY




 
 













In a country like India with huge population ,healthcare industry is considered as a promising one and it is showing good growth rate in recent times.Increasing education level and  disposable income,better awareness and various health schemes of governments acting as the catalyst for this rapid growth .Availability of better hospital facilities and awareness of patients  increasing the potential of the players in medical diagnostic Industry.Periodic outbreak of various diseases at various parts of country ensures sustained business for this industry as a whole. Span Diagnostic is a strong player in this industry which is manufacturing and distributing various kinds of diagnostic/pathology lab devices, including sample test devices and regents.SPAN originally started its operations in 1973 as  as Desai Laboratories and changed its name to SPAN DIAGNOSTICS in 1980.This Surat based company having strong technical and marketing alliances with well known global  players like Hitachi Chemical Diagnostics USA,Technoclone GMBH Austria,Biotechnica Instruments Italy ..etc. and having a nationwide marketing network .  At present a major portion of company’s income is coming from reagents manufacturing business for  Immunology, Biochemistry, Microbiology, Serology  and Histopathology .Increasing trend of lifestyle related diseases ensuring sustained growth in this segment.Company is a market leader in testing kits for AIDS and Maleria and a major supplier of testing kits for  government sponsored health programmes. Span also having an approved facility for antibody productions and their purification.

                                                  Company reported steady growth till 2011 and rewarded its minority share holders accordingly .But in last year Span recorded a loss(excluding extra ordinary income) ,thanks to its wrong decision to devote money and effors for developing  its  medical equipments business and overall sluggishness in economy.I feel ,now company realised its mistakes and taking corrective steps .Their decision to sell Hematology analyzers  business to Nihon Kohden India Private Limited and concentrate in their core business of diagnostic reagent manufacturing is part of their changing strategy .In order to tap the export market  company started a joint venture Span Diagnostics South Africa (PTY) Limited with Reindus Health (Pty) Limited for increasing its presence in African Market. Company also planning to enter in US market in near future . SPAN is also planning to aggressively tap the contract manufacturing opportunities for regents.In latest September quarter company reported sharp improvement in its performance where sales increased from Rs.15 Cr to Rs.25 Cr and net profit improved sharply from Rs.56 lakhs to Rs.2.26 Cr .Quarterly EPS is Rs.3.16.To scale up its business to next level,company having plans to sell part of its stake to MNC’s at right valuation.Considering the huge potential of this industry and goodwill of this company we can’t rule out the possibility of such an alliance with global diagnostic majors .If such an alliance materializes that will re write the fortunes of SPAN. On good September results its stock price appreciated recently and now consolidated around Rs.40 .Those with a long term view  may consider SPAN @ CMP of Rs.43.


Link to company website HERE

Link to latest Annual Report  HERE

Friday, November 16, 2012

KAVERI SEED COMPANY - UPDATE

KAVERI SEED COMPANY recommended @ Rs.272 /- on July 5,2010 today  hits its life time high @ Rs.1300/- .Investors with some risk appetite can still hold the stock for long term.

For old posting ,Click HERE

Disc:I have vested interest in KSCL

Thursday, November 15, 2012

BAMBINO AGRO - RESULT UPDATE

Bambino Agro reported a loss of Rs.81 lakhs in November quarter . For the full year 2011-2012 company reported a profit of Rs.3 Cr v/s Rs.1.8 Cr posted last year .After a long gap of 15 years company declared a dividend @ 15 % .During the latest quarter company also reported  its best ever single quarter  sales figure of Rs.70 Cr .Even the company posted a loss in latest quarter I feel promoters are reasonably confident about the future and hence they decided to distribute profit this time.Investors with some risk appetite can still hold it for long term.

 Disc:I have vested interest in BAIL

Saturday, November 10, 2012

DIWALI WISHES ....







WISHING A HAPPY DIWALI AND PROSPEROUS  YEAR AHEAD.THIS TIME I AM CHOOSING  'BRAND' AS THE THEME FOR  STOCK SELECTION.WE ALL KNOW HOW A BRAND IS IMPORTANT FOR COMPANIES AND HOW STOCK MARKET VALUING COMPANIES WITH GOOD BRANDS .WE HAVE MANY EXAMPLES BOTH FROM MNC AND INDIAN SPACE LIKE NESTLE,GSK CONSUMER,P&G,TTK PRESTIGE,PAGE INDUSTRIES..Etc.THEIR BRANDS ARE THEIR BIGGEST ASSETS AND THE MAIN FACTOR DRIVING GROWTH YEAR AFTER YEAR.BUT IT IS A FACT THAT STOCK PRICE OF COMPANIES HAVING GOODS BRANDS ARE HIGHLY PRICED AND OUT OF REACH OF MANY SMALL RETAIL INVESTORS . BUT STILL THERE ARE SMALL BUT GROWING  COMPANIES WITH GOOD BRANDS IN SOME NICHE SPACES.MANY OF THE SELECTED COMPANIES ARE ALREADY RECOMMENDED HERE AND SOME OF THEM ARE TRADING AT THEIR 52 WEEK HIGH LEVELS.SOME STOCKS EARLIER RECOMMENDED FOR PROFIT BOOKING ,BUT NOW CONSIDERED ALL POSITIVE DEVELOPMENTS INCLUDING FINANCIAL PERFORMANCE AND OTHER FACTORS HAPPENED THEREAFTER WHILE SELECTING THESE STOCKS.I BELIEVE EVEN THESE COMPANIES ARE TRADING AT SUBSTANTIALLY HIGHER RATES ,INDIA'S FAVORABLE DEMOGRAPHIC TRENDS WILL DRIVE THE GROWTH OF THESE COMPANIES GOING FORWARD.








 Company :Heritage Foods                

 Industry  : Dairy
 CMP :440
 Initially Rec.Price : Rs.200
 Sales   FY 2008           FY 2012
              Rs.588 Cr        Rs.1394 Cr
Link to Old Recommendation  HERE
Link to Company website       HERE
Link To Latest Annual Report HERE







Company :La-Opala RG                
 Industry  : Houseware
 CMP :Rs165
 Initially Rec.Price : Rs.50
 Sales   FY 2008         FY 2012
              Rs.55 Cr        Rs.115 Cr
 Link to Old Recommendation  HERE
 Link to Company website       HERE
 
  




Company :Bambino Agro                
 Industry  :  Packaged Foods
 CMP : Rs.61                                  
Initially Rec.Price:Rs.40                          
 Sales FY 2008      FY 2011
           Rs.92 Cr        Rs.215 Cr
        Link to Old Rec. HERE
        Link to Company web.HERE




Company :Acrysil        
Industry : Designer H.Wares
CMP :Rs.117                        
Initially Rec.Price : Rs.85 (Adj.to Bonus Issue)
Sales   FY 2008         FY 2012
              Rs.30 Cr        Rs.62 Cr
 Link to Old Recommendation HERE
 Link to Company website       HERE
 Link to Latest Annual Report   HERE 







Company :Orient Bell        
Industry : Building Materials
CMP :Rs.69                        
Initially Rec.Price :NA
Sales   FY 2008         FY 2012
              Rs.214 Cr        Rs.546 Cr
  Link to Company website       HERE
 Link to Latest Annual Report   HERE 

Thursday, November 8, 2012

NITTA GELATINE / NBCC / MULTIBASE - UPDATES

NITTA GELATINE 
CMP Rs.195 ,Recommended @ Rs.87.Company reported a net profit of Rs.6.5 Cr v/s Rs. 70 lakhs  for September quarter compared with same period last year .Recommending to HOLD

Old posting HERE

NBCC

CMP Rs.146 ,Recommended @ Rs.95 reported an 80% jump in net profit for September quarter compared with same period last year .Recommending to HOLD

Old posting HERE

MULTIBASE
CMP Rs.41 ,Recommended @ Rs.35 reported more than 100 % jump in net  profit for September quarter compared with same period last year .Recommending to HOLD

Old Posting HERE

Tuesday, November 6, 2012

BAMBINO AGRO - UPDATE

Board of Directors of Bambino Agro Industries Ltd will meet on November 15, 2012, inter alia, to consider and take on record, the audited financial results for the quarter/year ended September 30, 2012 and to recommend dividend, if any.
                                                                      If the  board decide to declare any dividend this time , this will be the first instance in last 15 years.

Old posting on this company HERE 

Monday, November 5, 2012

Sunday, November 4, 2012

STOCK MARKET BASICS - What is the difference between investing and trading?

COURTESY: INVESTOPEDIA

Investing and trading are two very different methods of attempting to profit in the financial markets. The goal of investing is to gradually build wealth over an extended period of time through the buying and holding of a portfolio of stocks, baskets of stocks, mutual funds, bonds and other investment instruments. Investors often enhance their profits through compounding, or reinvesting any profits and dividends into additional shares of stock. Investments are often held for a period of years, or even decades, taking advantage of perks like interest, dividends and stock splits along the way. While markets inevitably fluctuate, investors will "ride out" the downtrends with the expectation that prices will rebound and any losses will eventually be recovered. Investors are typically more concerned with market fundamentals, such as price/earnings ratios and management forecasts.

Trading, on the other hand, involves the more frequent buying and selling of stock, commodities, currency pairs or other instruments, with the goal of generating returns that outperform buy-and-hold investing. While investors may be content with a 10 to 15% annual return, traders might seek a 10% return each month. Trading profits are generated through buying at a lower price and selling at a higher price within a relatively short period of time. The reverse is also true: trading profits are made by selling at a higher price and buying to cover at a lower price (known as "selling short") to profit in falling markets. Where buy-and-hold investors wait out less profitable positions, traders must make profits (or take losses) within a specified period of time, and often use a protective stop loss order to automatically close out losing positions at a predetermined price level. Traders often employ technical analysis tools, such as moving averages and stochastic oscillators, to find high-probability trading setups.

A trader's "style" refers to the time frame or holding period in which stocks, commodities or other trading instruments are bought and sold. Traders generally fall into one of four categories:


  • Position Trader – positions are held from months to years
  • Swing Trader – positions are held from days to weeks
  • Day Trader – positions are held throughout the day only with no overnight positions
  • Scalp Trader – positions are held for seconds to minutes with no overnight positions
Traders often choose their trading style based on factors including: account size, amount of time that can be dedicated to trading, level of trading experience, personality and risk tolerance. Both investors and traders seek profits through market participation. In general, investors seek larger returns over an extended period through buying and holding. Traders, by contrast, take advantage of both rising and falling markets to enter and exit positions over a shorter time frame, taking smaller, more frequent profits.


Saturday, November 3, 2012

RAPICUT CARBIDES LTD - SMALL,BUT STEADY GROWTH


















During  1970’s and 80’s Indian Cutting tools industry was dominated by two multinational big daddies – Sandvik Asia and Widia India .In 1977 few technocrats resigned from Sandvik Asia and started this company . Rapicut’s manufacturing facility is located at Ankleshwar,Gujarat.Later company took over  Gujarat Drillwell Private Limited and merged the same with Rapicut in 1993.Company producing  various types of Tungsten Carbide products like . T.C. Buttons, Rings, Tips, Inserts, Flats, Bushes, Jute Eyelets, Solid Carbide Cutters,Tungsten Metal powder ..etc which finds applications in Mining,Metal Cutting and Engineering Industries. Company’s client list includes Neyveli Lignite Corporation,Mineral Exploration Corporation Limited , Steel Authority of India Limited ,Tata Iron & Steel Co. Limited ,BHEL ..etc .This small company showing steady growth over past many years .In latest quarter company reported good numbers .This time it is more important to note that this performance came at a time there is severe slow down in its user industries.I believe company now started to eat the market share of some biggies too.Rapicut is now expanding its manufacturing capacities and ready to  move to the next growth orbit . For the past few months  promoters are purchasing shares from open market  which is another point to note.Company is managed by a decent management which  showing their willingness to share the success with minority share holders. This small company raised their dividend payout ratio from 10 % to 30 %  during last four years.For the last FY,company reported a sale of Rs.30 Cr , net profit of Rs.3 Cr and an EPS of Rs.14/-. In the first six months of this FY itself Rapicut posted a turnover of  about Rs.20 Cr and a net profit of 2.15 Cr .Half year EPS is Rs.10/-. Company is expected to perform even better going forward  with some revival in demand from user industries and stability in raw material price.Due to purchases by promoters and good performance in second quarter ,its share price appreciated recently and trading around Rs.86/- .This company having a tiny equity base of just Rs.2.15 Cr  hence liquidity is low.Those with high risk appetite can add small lots at CMP and buy more if there is any dip below  Rs.75/-. Steady growth ,good management,resilience during tough business environment ,decent dividend yield ,possible capacity expansion and increasing promoter confidence ..etc makes it an attractive micro cap stock, but only for brave hearts due to low liquidity.CMP is Rs.86/-

Link to Company website HERE 

Link to latest Annual Report HERE

Discl: I am holding shares of Rapicut Carbides. 

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