Wednesday, October 30, 2013

GRANULES INDIA -RESULT UPDATE










Granules India reported a 52 % rise in top line and an 87 % jump in net profit for the quarter ended September compared with same period of last year. Half year EPS is close to Rs.15 which is almost equal to last full year EPS .Management expressed their confidence in attaining more customer approvals in the second half which will help the company to scale up the business further.

Company closed down its Singapore subsidiary which is a dormant one and not  commenced any activity so far with a  Share Capital of the just  Rs.5 lakhs. No negative impact on that account.

In addition to this ,today India Government imposed an anti dumping duty of Rs.50000 ( approx) per ton on the imported paracetamol from China , which will indirectly help the company . ( Read the news HERE )



In addition to the ongoing capacity expansions for existing products ,Company's new joint venture with Belgium based  Ajinomoto Omnichem for producing high margin niche API's are expected to start functioning at the end of next financial year.  

At the time of June quarter result  I recommended a BUY around Rs.140 level for those having some risk appetite  .( Originally recommended @ Rs.79 HERE ) .Now raising the buy price to Rs.160 and recommending a HOLD at CMP for long term for further gain.


Disc: I have vested interest in GIL

16 comments :

  1. Dear VP ji,
    It would be better if u start giving comments on all of your recommendations (as and when results come). There are lot of picks currently at far below than recommended. We get confuse whether to hold or book loss and exit. For example, Mangalam Cement, KSB pump, HEG, etc. and lot more. Atleast all together u can put table of your previous recommendations. Thanks and looking your great help in this regard.

    ReplyDelete
    Replies
    1. In most of the cases I am replying through e-mails or as comments below the posts. Except in the case of few stocks I feel, many of the readers are taking only a short term views and not holding the stock as a genuine investor.If I feel at least few people still holding the stock and result is something special on the upper side or lower side - there will be separate postings.

      Delete
    2. I completely understand your view Valupick sir. But a naive investor would not have control over their emotions and would want to buy all ur recommendations but practically that is not possible. they try to get rid of some of ur earlier recommendation to accommodate the new ones and this can be dangerous too.

      On another note---- What are your takes on HSIL

      Delete
  2. Dear Vp,
    Mr. Atim kabra purchased 6 lac shares in Astra Microwave just before the results. Are you expecting big things there as well?

    ReplyDelete
    Replies
    1. This guy is increasing his stake continuously .No change in previous positive views on Astra

      Delete
  3. I was actually expecting this post from you. After following u for nearly 3 years ...The time has come when I may make some serious gains ..

    Keep up the good work

    ReplyDelete
  4. Sir,
    your take on Torrent Power at current price. The results are bad but it seems like its getting discounted at curent price.

    can one buy stock for long term

    ReplyDelete
    Replies
    1. The issue of power cos is that there is not a specific method to calculate tariff based on the raw material cost ,as in the case of petrol price. Some clarity in this matter may re-rate this sector.

      Delete
  5. Whats ur take on Marksans Pharma post result?

    ReplyDelete
  6. Dear sir,
    Advance happy diwali wishes to you and to your family. sir your previous recommendation Marksan which yielded more than 100% profits released their results, kindly give your valuable thoughts on this result, whether to book profit or hold for further gain, since you had mentioned it is only for risky investors, your quote at this juncture is required sir, thanks a lot sir.

    ReplyDelete
  7. Still waiting for some clarification on debt repayment .At present neutral on it ,will again take a call once company announced the means of finance for debt settlement.

    ReplyDelete
  8. Dear Valuepick,

    Happy Diwali to you and your Family members.

    I share with you the joy of able to sustain in this ruthless market mainly by the courage provided by your blogging.

    You have been stable in your research and contribution over the ups and downs of the market and this shows you are a very good hearted and matured person.

    On this festive occassion, we wish you Good Health and Prosperity all the way.

    Wishing you a Happy Deepawali once again, we wait for your Diwali Picks.

    Thanking You Sir, Arun Kumar, Hyderabad.

    ReplyDelete
  9. Sir your view on Ashapura Minechem Results
    Can we hold/accumulate ?

    ReplyDelete
  10. Wish you and your family very happy Diwali VP sir!!!!

    Selvi

    ReplyDelete
    Replies
    1. Wishing the same to you and your families.

      Delete

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