Saturday, April 26, 2014

MULTIBASE INDIA LTD - REPEAT



 
What is common in Sunshield Chemicals and Multibase India .The easiest answer is – both these companies are operating in same sector ,broadly we can call as ‘Chemicals’. But more than that the ultimate parent company of  both these companies are world leaders in their respective fields.If the ultimate parent of Sunshield Chemicals  ,ie. Solvay is a leader ,the ultimate parent of Multibase is a giant. Multibase India owned by Dow- Corning which is a joint venture between world’s second largest chemical company Dow Chemicals and Corning Inc.Within the specialty space ,Dow corning is specialising in silicon based technology and the global leader in Silicon based specialty chemicals. Company offering more than 7,000 products worldwide.

                                                                                The company we are discussing here – Multibase India – is a 75 % subsidiary of Dow Corning .Company’s manufacturing and R&D facilities are located at Daman.Multibase producing various silicon based products finding applications in Automotive, Personal Care, Personal hygiene, Stationery,Telecommunications and Engineering Polymers.Its thrust area is Automotive segment where company is concentrating mainly in safety products – specifically in Air bags.In India more than 75% people using passenger cars/vehicle without air bag .Currently air bags are common only in high end vehicles and the potential is very vast due to this reason.Since competition is very tough and car makers are keen to offer more and more facilities in vehicle to lure potential buyers , chances for introduction of air bags in mid segment cars are very high and buyers are also preferring this due to safety reason which is most important.In future ,we can’t even rule out the chance for mandatory air bag provisioning in passenger cars which will change the entire picture of demand scenario of company’s major product. Multibase together with its global affiliates is the  global market leader for injected airbag covers has over 15 years of track records in terms of reliability and durability with material approvals at all major US, European and Asian OEM’s.Multiflex® TPO and TPE-S materials produced by the company meets all safety for driver, passenger, knee, side and curtain airbag covers.In addition to this product ,company also producing various products for fluid transportation ,sealing applications,Dash Board finishing products..etc. Other than automotive segment company’s products are finding applications in Personal care and cosmetics,Portable Electronics equipments,Houseware items,Electrical Protection systems ..etc.



At present  the size of operations of this company is not very large  ,but I believe ,the potential is very big .In last FY ,company reported a Sales of Rs.45 Cr and a net profit of Rs.4.5 Cr. The net profit figure reported more than 100 % jump over just previous year. In the latest December quarter,Multibase reported a sales of Rs.13.18 Cr v/s Rs.9.24 Cr and a net profit of Rs.1.44 Cr v/s Rs.0.87 Cr over same period last year.

     


                                                    Click on the image for a better view
 

Dow Corning Corporation ( through Multibase S A) holding 75 % stake (which is the maximum permissible % of promoter holding for a listed company in India) in this company.Another company named Dow-Corning India Pvt Ltd is also operating here which started operation before the takeover of this company by Multibase SA.But to avoid overlapping in products ,both these companies are concentrating in products with different grades.Chances for an integration between both these companies can’t  rule out in future .But if it happens most probably only after a de-listing offer for the share holders of listed entity.( Since it is only a probability or speculation  ,no need to take this part for valuation purpose) .



Earlier I recommended this stock around Rs.35 .But still I feel,this is an under researched stock by investor fraternity and many of the participants are not even  aware that it is an affiliate of a world leading MNC which owns superior  technology and global marketing network.I hope ,the changing consumer preference will boost the demand of company’s products going forward .Recommending this small company for investors with enough patience again @ CMP Rs.55. Stock listed only in BSE.


Link to Company's Global Website HERE

Link to Company website HERE 

Link to latest Annual Report HERE

Link to earlier Recommendation HERE  

Disc: It is safe to assume that I have vested interest in Multibase.

 

50 comments :

  1. Dear sir,

    Your views on Kirloskar oil engines results...

    ReplyDelete
  2. Dear VP - I have a few general questions (not related to Multibase discussion).

    How does one know / find out if a stock is operator driven or not? We hear this quite a bit in some stocks. Why does SEBI not do anything in such cases? Lastly, do you think there is operator activity in Zicom?

    I hope you post the questions and share your thoughts as this will raise general awareness of your readers.

    Regards.

    ReplyDelete
    Replies
    1. If some stocks move very fast people always label it as operator driven .My only concern is whether a stock is under valued ,fairly valued or over valued at a given price point and not whether it is operator driven or not .Some times ,if someone with deep pockets identified a stock and ready to buy that from market continuously that stock may move very fast .In that case no meaning in labeling it as operator driven . I don't think SEBI will take any action for buying shares from open market by paying money and if that is a sin stock market will not sustain.They may ask for explanation as a procedure. But if somebody or some groups is colluding for price rigging through circular trading ..etc that is an offense and punishable.

      Delete
  3. Vpji
    Whats ur view on akshoptifibre and super house. Is there any loss booking point or still holding. Kindly tell.

    ReplyDelete
    Replies
    1. Hold Aksh Optifibre and Superhouse .Review the situation after seeing the trend of rupee value post election out come.

      Delete
  4. Sir
    Whats your view on KESAR TERMINALS?

    ReplyDelete
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    11. Dear Friends,

      Receiving lot of messages on the above subject . Let us leave it here otherwise it will not end anywhere .Better to spend time to discuss about stocks ,which is our prime objective.

      Thanks

      Delete
  6. sir how can u recommend a dow company which was the main culprit in bhopal gas tragedy

    ReplyDelete
    Replies
    1. I think the answer is in your question itself ,it was a tragedy and not an intentional one.

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    2. Dow Chemical Company purchased Union Carbide in 2001, seventeen years after the disaster.

      Delete
  7. No one is benefiting from your recommendations, only operators and some big people are taking advantage for example ur recent call himalaya international opened in upper circuit with 3 lac buyer at 9:07 am. don't you think there is something you need to do or apply thinking on. Please do think about it and do small favor to small investors who always lose money.

    I appreciate your efforts in helping small investors but you fail in execution.

    ReplyDelete
    Replies
    1. It is an issue beyond my control .You should not genalise it .Take the case of Panacea Biotec ,which opened around Rs.119 came down to Rs.116 and closed around Rs.129 on the following Monday of recommendation which is currently trading above Rs.170. The same same stock I recommended around Rs95 level many times and easily available even below the recommended price for many months.If readers are not ready to study the company and always waiting for spoon feeding ,I have nothing to say about that.

      Delete
    2. sir i would request you to come with the idea during stock hours, because trust me no body research abt ur picks most of them just blindly them. i knw u will call it spoon feeding but then that is the truth. you knw what your way of discovering the stock was much better style the way u came up with sequent scientific was much better way. although i have invested very less in your picks .i am your huge fan..totally inspired and learnt a lot from you. u rock sir

      Delete
    3. Dear Ankit

      Purpose is my blog is not create some movement in share price but to help genuine investors to get some idea before entering a stock. For that you need to do own home work in addition to my inputs . On such a work, in some cases you may realise that some stocks may not suitable as per your risk profile.For many of our readers such a detailed study is not possible during market hours and many of them are positional traders too and they need to monitor their trading positions during market hours . In such a situation ,if I post during market hours and at least few of you may jump into the stock just hearing the name and without any back ground check. Chances for caught in wrong stocks ( stocks not suitable for one's risk profile) is high in that case.When I started to post in this blog about 4 years back ,I was posting during market hours and later my readers itself requested to post on Saturday and I accepted it . Even SEBI requested ( not as a rule but as a suggestion) companies to publish result either before market opening or after market closing to avoid price volatility.

      Delete
    4. sir i have learnt a lot from you . i will just request you to atleast think over it again. again I will say i have not invested much but learnt huge from you. you are my guru. so what you will do will do for the best .

      Delete
  8. Sir,

    I need your views on Nilkamal I want to buy this stock.I know you had recommended nilkamal in 2011.But since then due to some issue in the company(mainly capex expansion) it has not moved.
    Can I Buy this at CMP...Can it be a multibagger if i am willing to hold it for next few yeras to come...Please please do reply....

    ReplyDelete
    Replies
    1. No change in my stand on Nilkamal.Keep watching the movement of raw material cost which is related with crude price .

      Delete
  9. Respected Sir,

    Need you view on HSIL.The recent quaterly results shows that it is now on the right track and all the right things which the company has been doing for the last few years is giving postive results now.Can it be bought @CMP.....Can it complete with cera etc...and become multibager.

    Sir please do reply...

    ReplyDelete
    Replies
    1. Good company for long term investors.

      Delete
  10. Sir, please ignore people who publish nasty comments about your posts here. You are selflessly putting in your research ideas without expecting reward. Obviously, you deserve the right to decide when to post these ideas!

    I started seeing your blog recently only and I really wish I had seen it much earlier!

    Thank you very much

    ReplyDelete
  11. Sir,Need your view on Fluidomat.....Being a monopoly player in its sector,can it be a multibagger even from CMP..

    ReplyDelete
    Replies
    1. Fluidomat recommended @ Rs.29 which already gained about 4 times .

      Link below

      http://value-picks.blogspot.in/2010/07/fluidomat-watch-it.html

      At current price ,neutral on this.

      Delete
  12. Dear sir, we enjoy the way stocks runs after your postings on this site...good, at least some is making the money...it is good. This will repeat in bull markets, which we are experiencing. But every bull market has corrections/ big or small and it will give chance those who are left out...what is required is persistence and follow up. This is the key on way to success. Thanks and best regards.

    ReplyDelete
  13. Be happy what you are getting and follow your Portfolio instead of seeing others.
    As I am a small investor, I am learning and earning here without loosing my principle amount. previously i burnt my fingers a lot by paying TIPS.Good by God's grace i am watching only this blog for more than 1 year, really we are happy here. Please don't spoil VP's mood who is geneously & honestly helping investors like us.
    Saturday is a perfect day to study and analyse & decide to buy the recommended stock.
    Surprising whoever is blaming here are anonymous.
    I request VP to avoid anonymous frustrators.
    Dear VP, Please concentrate & help us to learn & earn as usual. Thanks .
    Bhalaji

    ReplyDelete
  14. dear value pick, would you give your comments on Mahindra Ugine in view of its merger with Mahindra CIE, thanks and regards

    ReplyDelete
  15. I have reacted earlier also when people blame a person who does godly service. Let us think in a different way. Why can't you guys open a blog site and start using the same job? Yes. we are giving you options. What is the purpose of blaming him. Do you get some sadistic pleasure or thinking of him stopping this great service to the normal human. Then you are in fools paradise. I know so many shares were idle even after recommendation and later some of them went up 4 times. I can give some examples like sunshield, arrow coated, alpha geo etc. I don't want to waste my productive time. but pls stop blaming others. making money is so hard for common man in a country like India. LET US ALL LEARN AND GROW TOGETHER. GOD BLESS YOU ALL. Sulekha

    ReplyDelete
  16. I have been following the blog and learning day by day. We all are visiting this blog to get gyan. Mr.valuepickji is not send mail or coaxing any body to buy. In ut owm interest pls do not post unwanted comments. Thanks jay muscat

    ReplyDelete
  17. Sir,

    Pancea biotec has appreciated a lot in recent weeks. is it advisable to enter at 170 +??

    thanks

    Thanks

    ReplyDelete
    Replies
    1. Stock appreciated substantially from recommended level . Just HOLD it .

      Delete
  18. great pick. always liked companies which are known for their uniqueness.

    ReplyDelete
  19. Dear VP,

    Please do not pay attention to the negative messages. You are doing a fabulous job I must say. I myself have lost almost 8-9 lakhs during 2004-2013 untill I cam across your blog. I must thank you for the kind of research you are doing and the effort you are putting in to recommend and also answer to the queries not only on the stocks you are recommending but also on some of the good stocks which boarders are asking repeatedly. I have made a profit of approximately Rs. 95,000 from Deember 2013 till date just by sticking with patience to the stocks you recommended ( ofcourse, after doing my study) and convincing myself. Good work.. keep it up.

    With very best regards,

    Imran
    Saudi Arabia

    ReplyDelete
  20. Dear VP please give your commets on wockhardt, are u bullish on the co for long term, thanks nitin

    ReplyDelete
    Replies
    1. Positive on Wockhardt for long term.

      Delete
  21. Hi sir,
    Ur calls are really super... I made a good profits on caplin labs and alphageo. Thanks for that. Whats you view about surya pharma sir. I have purchased it for long term.

    ReplyDelete
  22. Thank you sir. What about UB holdings... whats ur view on that...and yesterday u said about wockhardt today its flying...

    ReplyDelete
  23. Hi sir,
    I just started trading 1 month back. i am following your post from day one.
    whenever you recommend a trade, the next day it reaches the upper cutoff.
    Can you please share your views on NTPC, Hexaware, Kesoram Industries and kalyani steels.

    Thanks

    ReplyDelete

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