Saturday, December 20, 2014

GTS - 8 ANSWER --- SALZER ELECTRONICS





 Salzer Electronics is a Coimbatore based company established in 1985 with technical collaboration of Saelzer Schaltgerate Fabrik, GmbH., Germany. Company manufacturing various products finding applications in transmission and control of power. Its product list includes Rotary Switches, Terminal Connectors,Relays,Motor Control Products, cable Ducts,Energy Savers, Toroidal Transformers, Modular Switches..etc.  Company having five manufacturing facilities – four in Tamilnadu and one in Himachal Pradesh .India’s largest infrastructure conglomerate Larsen & Toubro is the single largest share holder in this company with more than 26 % stake in it. In addition to the financial interest in Salzer  , L&T supporting  to market the  products of Salzer  and close to 35 % of total sales of Salzer is coming through L&T.Salzer is the largest producer of Rotary switches in Asia and market leader in India. Company is the only approved supplier of Rotary Switches to Nuclear Power corporation of India  and the largest supplier to Indian Railways.Company is a preferred supplier for GE India and Schneider Electric.

                                                                       Demand for company’s products are mainly linked with the growth of power and infrastructure sectors  which reported slow pace in past few years. Even during this period Salzer could continuously increase its top line as well as export income. Company now concentrating in power saving solutions for Corporations and Municipalities.After successful completion of such projects in Coimbatore and Madurai municipalities company now received an order worth Rs.106 Cr for implementing similar project at Erode and surrounding areas.Company   now planning to increase its attention in premium products like Modular Switches..etc . In order to increase its presence in overseas countries , recently Salzer formed an overseas marketing company named Salzer Global Services, LLC in USA . With a strong supporter like L&T , Salzer is in a better position to utilize emerging opportunities once there is revival in infrastructure and power  sectors.Salzer is the largest supplier of Rotary Switches to Indian Railways too . For the past few years sourcing from Railway came down due to their poor financial health, but the new government’s initiatives to revive Railway is also expected to benefit Salzer in a big way .  On expectation of revival  of demand from such  major customers , company management is confident to achieve 20 % CAGR for next few years .Recently company insiders also bought shares from open market even above Rs.200 ( Disclosure Link HERE) which may take an indication of increasing confidence .



In last FY , company  reported a  turnover of Rs.245 Cr and a net profit of Rs.8.5 Cr . In this FY , Company already reported a net profit close to Rs.6.5 Cr in the first half itself and expected to close the year with 13-14 Cr NP if there is revival in economy .



Conclusion



With the strong support of L&T and possible revival in its user industries , company is expected to report decent growth going forward . Order flow to project division in the field of energy management under PPP model is also expecting to increase and recent order of Rs.106 Cr in an indication for the potential of this  business. When I initiated this exercise ,Stock price of Salzer was around Rs.150 , but it  gained more than 80 % in last one week.I believe, the ‘Value’ factor missing at this price after the  sharp run up in such a short period and hence not suggesting any aggressive buy at current rate for new entrants . Considering its future potential, those  entered at lower level  can still hold it for long term,   and new buyers can consider fresh buy  in corrections , if any .

Link to Company website HERE





84 comments :

  1. Thank you very much for suggesting good pick for long term investment.

    ReplyDelete
  2. Who guessed it in start will b smiling big and those couldn't will be in delima to buy it or not as rate have appreciated alot.
    Guys long term opportunity is what VP sir says so either invest or wait for price adjustments.
    But will surely added this jems into my long term portfolio.
    Thanks VP sir

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  3. Sir pl share your view on surya roshni

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  4. It's still undervalued against havells etc.

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  5. Sir..the PE of this company is low compared to Crompton and havells....I still see great value ahead sir

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  6. Dear VP sir,

    I found another stock while searching for gts-8. It is Titan Biotech. Promotors have been alloted huge number of stocks at price higher than current market price. Company reporting top line growth for last 5 years. Promoter holding currently at 48% and debt to equity is less than 0.5

    Sir, request you to please give your view on Titan Biotech

    Thanks for your time and patience :)

    ReplyDelete
    Replies
    1. Not sure about the scalability of the business of Titan Biotec

      Delete
  7. At this price also it is buy.

    ReplyDelete
    Replies
    1. Each and every person following different parameters for stock selection .A stock slightly over valued based on value based parameters may be fairly valued on growth based parameters .

      Delete
  8. This comment has been removed by the author.

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  9. Sir please change ur policy of asking gts question..this stock was @ 150 when u asked the gts n now it is on 280...it is worth buying now...no!! I don't think so...sir this is my humble request u that if u ask any gts question then ask on Friday after 4 o'clock and give the answer on Sunday evening...I knw u have no intentions of any undue advantage from ur gts but people with strong fundamentals take undue advantage of the investors like us...this time I will not buy this stock just because many traders have make position in it.. And I also advice ppl not to buy @ this current price as the traders should given a lesson that u r here not for short term gains...hope u will publish my comment..as I have very much faith on u

    ReplyDelete
    Replies
    1. Hi Pradeep,
      What is the use of GTS if answer is given on Sunday, no one will do any research.... as the answer is anyway going to be published???

      Sir,
      I think the best thing to do is to reduce the Guess time from a week to less - like 2 to 3 days. Publish on Wednesday 4pm. If some one is really good to find it in such short span, he/she deserves it.

      Delete
    2. Thanks a lot Pradeep. I hope few more guys like you stay away so that I will be able to buy this stock on Monday before it hits UC.

      Delete
  10. I will add this Gem in my portfolio tomorrow for investment as prospect for the company are very bright.

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  11. A video profile of the company.. https://www.youtube.com/watch?v=t0tT27lDiZs

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  12. Good Morning Sir.
    Thanks once again for suggesting such a good scrip.

    Have a nice weekend.
    Bye.

    ReplyDelete
  13. A good Gem to buy

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  14. Sir value factor not missing.. I am adding huge quantity tomorrow.. Same thing happened with aimco yet it doubled.

    ReplyDelete
  15. No matter how much this stock has appreciated in a week, but I will definitely add this stock in my portfolio at whatever price available on Monday because as VP is saying as per growth potential there is still value which is left in the stock.

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  16. I will also add this stock on Monday, don't know It will be traded at more than 80% from current price in coming week. So I think strong hands should pick this value stock.

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  17. Sir, Can I add Salzer at this level for long term. I have seen many times that stock price goes up and small investor like us keeps on waiting for price correction and later buy it at higher price.

    ReplyDelete
    Replies
    1. I never said it is a bad company . Each ones risk taking capacity is different and having right to take own decision . Since I should post my opinion in a public forum I can only express it only with a conservative stand and suitable even for below average risk takers .

      Delete
  18. Some of readers are behaving like kid. They are saying intelligent students gets more marks. Ofcourse they will get. They worked so hard all these years to build their fundamentals.

    Apply the same logic on stock market also.

    ReplyDelete
  19. Great Buy at this level as well..if you get it..

    ReplyDelete
  20. Dear Sir,

    Your clue no. 9... DE Ratio was mentioned as less that 0.5. As per MC it's 0.82!!.

    Thanks

    ReplyDelete
    Replies
    1. In the comment session of GTS posting I clearly stated that the data based on Annual Report . Inviting your attention to Page No.9 of latest AR.

      Delete
  21. Being a long term investor one should go with excellent pick. I agreed in participation of trader for short term. But growth is the most attractive parameter. If an investor buy 10% cheaper what is the wealth it going to create. In long term one can create wealth. On Monday I am going to add in my portfolio. If growth is there one can see 4 digit rate in future. Why to worry about short term corrections in aimco same situation was there. I could not add any stock due to waiting of correction. Pls its an opportunity for long term investor. People posting above comment might be trader why to worry of trader. Real investor never think of trader. MKT run because of all people present in MKT. If all people becomes investors who else will be buyer n seller.

    At every gts stock get double each time. Just study each gts pls. VP suggest gts when it might be unique in that segment.

    So don't wait much create wealth. Add on every dips. VP sir always look value of stock from growth perspectives.

    ReplyDelete
  22. VP sir, trust me, the same people who are frustrated and asking you to post GTS on Friday evening are the same people who will complain that a stock is in continuous UC when you post a stock suggestion or complain that a stock value has fallen when there is a slight correction like incase of Polyplex,Hindustan Tin or HMVL. They don't want to see the long term potential and just see that price has increased a little when they are buying. All of them expect that the price should be flat when they buy, and once they buy it should always go in upward direction and never come down.

    ReplyDelete
  23. sir your take on granules india for long term (5 years). i have been in search of good co with good potential and good fundamental for investment for long term investment (3-5 years). but i am very confused. i have started buying skm, arrow, and probably start buying oriental carbon..after good study and conviction from my side and your useful input.pls suggest about granule india for long term

    ReplyDelete
    Replies
    1. CMP of granules is around Rs.740 which recommended here around Rs.75 . One can still HOLD .

      Delete
  24. Dear Sir,
    None of my comments are posted here. Sorry if i made any mistake. Please make my comments also visible. Thanks in advance.

    ReplyDelete
    Replies
    1. Pls check whether any question with same meaning answered to someone else in recent days .Avoid posting as 'Anonymous'

      Delete
  25. Sir, I am awestruck by your skills to identify multibaggers! Hats off to you sir. Thank you :)))))

    ReplyDelete
  26. So many Anonymous guys want to still buy even when VP cautions that it is already fully valued and new entrants can consider buying in corrections? Looks like some one has bought huge quantity in anticipation to sell it on Monday and now feeling tensed and posting continuously with different names that they still want to buy. I believe it is the same guy spamming.

    Normal investors should use common sense and enter this stock only on corrections. Al people who bought to make quick bucks are going to sell in next week or so and exit.

    ReplyDelete
  27. what I learned from stock market is dont run behind the stock, consider it as miss opportunity, there will be plenty of opportunity ahead. Be desciplined in your investment, and protect your hard earned money. Thanks

    ReplyDelete
    Replies
    1. Read comments posted below GTS -8 posting Yesterday during market hours ( around 12.14 PM) . I clearly mentioned this fact .

      Delete
  28. I don't understand why many people are telling that GTS should be posted on a Friday. If they put in the hard work, they can also crack the GTS answer right? or are they trying to tell that I am not ready to put the hard work and everything should be spoon fed to me?

    What is the fun in a game when there is no reward in the end and also you increase your stock market knowledge in the process.

    ReplyDelete
    Replies
    1. I agree with the above comment. Why should one be worried if others are experienced and make quick decisions. If one feels price of a stock is too much, they can wait for correction or buy in stages. Why worry about others making money or equal opportunity. It's your money and your call only.

      Delete
    2. I also agree. This is sudden gush of investor taking the demand and supply for the stock to an unsustainable levels due to heavy demand from all corners of investor. If you can crack and take investment then it is good. Also look at recent reco by ValuePick and they are available at reco'ed level like Hind Tin works but nobody talks about that or are happy studying or accumulating these kind of stock... many want to make quick bucks forgetting the long term gain they will make..

      GreyCells

      Delete
  29. VP sir pls continue doing good work. you are genuine godfather of retail investors. your long term performance is excellent. better than those free and paid tips given on TV, internet and other newspapers and magazines

    ReplyDelete
  30. Yes Jeune you are right.I am 6 month old in Share market and guessed the right stock in the third day but was not sure so I will purchase it now on Monday. I dont mind about the cmp. Out of 4000 + scrips in Bse and Nse , choosing the best growth oriented scrip is most important. I think we should all be thankful to VP for helping us.
    As far as GTS is concerned it is an opportunity for us to learn about fundamentals. Those who are guessing it earlier knows better than us so deserve more wealth than us. Why people are jealous of them. I am happy that I got a very good scrip at only 277.15

    ReplyDelete
  31. Sir your view on asahi india and saint gobain?

    ReplyDelete
    Replies
    1. Asahi is a decent one , not tracking saint gobain

      Delete
  32. It would be fair to all if GTS is posted on wednesday after 3:30pm

    ReplyDelete
    Replies
    1. That is not a good suggestion. I actually cracked the answer on the 4th day. Everybody may not have the time and knowledge to find the answer with in a day or two.

      Delete
    2. That would give very less time for analysis.

      Delete
  33. Sir your views on Daikaffil Chemicals please???

    ReplyDelete
  34. Sir,
    Please share your views on Flex Foods.

    ReplyDelete
  35. Dear VP sir,
    This is the first time in this blog history that a scrip opened in lower circuit after reco.. Why the so called value investors are not putting their money? This is time for you VP sir to think whether to continue guessing series in this manner. The basic motive in stock market is making money irrespective of value. Thanks dipu

    ReplyDelete
    Replies
    1. VP nvr came to us asking to invest in the stocks which have been recomennded by him,once he selects a stock we can go through it and if we feel its worth then only we can put our money into tht at our own risk, as simple as tht

      Delete
    2. I will also loose all money I made through one of the suggestion from this blog. I got it on Friday so no escape for me. Now if it correct by say 30% then it may take may 6months to just recover the loss!

      Delete
  36. Sir I have identified Sudarshan Chemicals as a potential long term buy. Can you share your thoughts on it. Regards

    ReplyDelete
  37. Dipu

    Purpose of this blog is not keep a bright history but help readers to invest in the right stock at right price.I can't suggest to buy a stock at any price and tell profit is assured .I can think only from the side of genuine long term investors and not from the side of positional traders or speculators . It is a fact few may caught on the wrong foot , but I think it is not the genuine investors who work hard to find out the stock and studied the fundamentals of company but those got names through short cuts like social media sharing ..etc and tried to make quick bucks . I can't betray investors for the happiness of speculators or short term players by suggesting to buy the stock at any rate.

    ReplyDelete
    Replies
    1. Amazing reply sir...hats off to you...please continue with your GTS series as it helps us to study stocks. :)

      Delete
    2. VP, i feel tht thr is no point for you to give an explanation as you nvr told anyone to invest in the stocks that have been picked by you, you just suggest a stock based on ur reasearch it doesnt mean tht we shud blindly beleive it and put our money....

      Delete
  38. @Dipu Sreedharan,
    Dont forget that the stock made a historical rise of 80% within a week and VP Sir only suggested against aggressive buying. Now a healthy consolidation is happening which is most welcome for all value investors for accumulating a multibagger. My request to VP Sir is to continue GTS whatever format, it has been very educative and rewarding for me. God Bless.
    Ravi

    ReplyDelete
  39. I never asked VP sir to stop GTS series but raised my concern in continuing in this manner. Because VP sir itself had to admit that the value factor is missing aftet one week run up in price . People are following VP sir blog very closely and traders/speculators are using this blog to make quick money.

    ReplyDelete
    Replies
    1. Dinu - let the traders/speculators make quick bucks.. Let us all be a wise investor.. Note - every sharp rise will have a sharp fall.. Enjoy the ride n thrill of finding amazing stocks! :)

      Delete
  40. @Dipu Sreedharan,
    'Value factor' differs person to person and what if the price crosses, say Rs.400 in the next few days/weeks? Also, traders/speculators are all part of the market and nobody can do anything about them. The only question is, whether it is a quality stock with multibagger potential and are you a longterm investor.

    ReplyDelete
  41. Respected sir I need your valued opinion even if you are not tracking this stock, pl help me. Associated alcohol & brewery 3 yr CAGR on rev and profit is 35% roe at 11% promoter holding 58% (increased stake by 8%) book value 70 gros block at 145 cr sept qtr debt fy 15 at 50 cr fy 15 exp rev 300 cr 36 cr ebita np 13 cr eps 15 promoter is decent. Only supplier of triple distelled grain spirit to diageo Smirnoff only bottler of single malt whisky glen Drummond and bottling agreement for Haig scotch. ENA supplier to radico , tilak nagar own IMFL brand red white, jamesmcgill whisky, jamagian rum, London brige gin. He has grain and molasses based distellers very modern plant in khargone madhyapradesh. Please just throw some light even if not tracking it because I found it INTERSETING but as an seasoned investor you may find something I am missing. God bless you and your family for helping small investors like us.

    ReplyDelete
    Replies
    1. How one can say opinion only on the basis of reported numbers ?. Have you studied the promoter pedigree.?

      Delete
  42. Sir what happened with salzer electronics.is any bad news or something else .plz tell sir I'm not in market from last 4 days.

    ReplyDelete
    Replies
    1. Nothing happened. It is a good company and suggested to enter at right price.

      Delete
  43. Dear Vp sir salzer has corrected 20% in last 2 days. If it opens at lower circuit tomorrow does it make a ' value ' buy at those levels? Even promoters had few days ago bought salzer @ 210 odd levels.

    ReplyDelete
    Replies
    1. If it fall 10 % more ,one can start looking into it with a long term view .Better to accumulate.

      Delete
  44. Finally u said to accumulate i am following u since last one year , i have never got a share at the price u recommended. Its good for all of the follower to accumulate, since now it is in the near range at which it was recommended.

    ReplyDelete
  45. dear vp sir..
    Future make in india will be improve it's benefit of salzer electronics ltd..?
    Thanking you sir

    ReplyDelete
  46. Dear Sir, on 18th & 19th one of the promoter of salzer Mr Kantilal Wakharia
    sold considerable number of shares, can you shade any light on this development please.

    ReplyDelete
    Replies
    1. Dear Friend

      Who told you Mr Kantilal Wakharia is a promoter of Salzer ?

      Delete
    2. In the june 2014 shareholding kanyilal wakaria is appearing in the promoter category.... Kindly Check

      Delete
    3. He already re-classified as non promoter

      Delete
  47. Hello VP sir,

    i was try to ask you many time about "Meghmani Organics" but not getting any reply.. can you please tell me about Meghmani Organics.. i am interested to buy this stock. and i have already 1000 @ price of 24.70.. so can i hold for 1 year.. ?

    Thanks in advance.

    ReplyDelete
    Replies
    1. Dear Patel

      Many times in the past I replied that I am not tracking it, may be in reply to some other's question.

      Delete
  48. As somebody asked about associated alchlol in this blog the promoter is anand kumar kedia a well known industrialist in madhya Pradesh and a decent guy there plant is very modern and situated in khargone, madhyapradesh. This is what you call pedigree and what do you mean by reported numbers is there any unreported numbers.

    ReplyDelete
  49. sir, thanks for your value-able advice and reports for stock selection. from your past recommendation people are trusting u and have faith on you. I am sure that u r also benefiting from faith of peoples. my concern is that when you recommending stock to investors let them decide is it right price to invest or to wait for correction. i am sure people have learned from your stock stock selection and those who are reading full report about know about it. key point is to individual should decided is it right price to invest or wait.

    ReplyDelete
  50. Sir
    Your views on Apar industries... Seems similar to this company with good growth potential

    ReplyDelete
  51. vp sir, what abt DION SOFTWARE, I am holding on for last 7 months but it is only going down from my purchase price of rs. 120, do u think I need to exit or hold for another few months, pls advice. I asked many times. God bless

    ReplyDelete
  52. Hi VP sir,
    i am today see the SALZER ELECTRONICS. it is around Rs 235. i feel it is at good price to buy after your suggest it given good up move now it seem it is corrected. after your suggestion i am not seeing any big negative news in the stock. expect L&T sell his stack 13.66% in this counter which you post largest share holder.
    can you suggest buy in this level.
    Thanks
    Anil

    ReplyDelete

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