Stock Updates

Waterbase Recommended at Rs 49  on 31st march,2015 and currently trading at 161.30(more than three times,reached a high of 176.90 on 15th October,2015 )
Recommended to sell one third of the quantity bought and hold rest 2/3rd  as profit.

Sunil Hi tech Recommended at Rs 150 Currently trading at 300.85,can sell half of it to cover investment and hold rest half as profit.

Anil Limited Recommended at Rs 200 Currently trading at 274.10(Appreciation of 37.05%)
Recommended to hold

Shilpi Cable Recommended at Rs 50,Currently trading at 66.55,Recommended to hold

Jindal Stainledd Recommended at Rs 41,Currently trading at 47.Recommended to hold

Munjal Auto Recommended at rs 75,Currrently trading at Rs 85.Recommended to hold.

Nikhil Adhesive Recommended at rs 33.5,Currently trading at rs 38. Recommended to hold

Nitin Fire Recommended at rs 36.5,Currently trading at rs 41.20. Recommended to hold

Roto Pumps Recommended at rs 83.75,Currently trading at rs 76. Recommended to hold

Narmada Gelatine Recommended at rs 145,Currently trading at rs 159.30. Recommended to hold

Recommended to hold other shares too.

TORRENT CABLES

BACKGROUND

-Part of multi faceted Torrent group which includes Torrent Pharma,Torrent Power

-Cables market can be broadly classified into telecommunication cables,house wire and cables and power cables.Power cables is mainly used for conveying electricity in power transmission and distribution network.

-Torrent cables is One of the market leaders in HT(HIGH TENSION OR HIGH VOLTAGE) POWER CABLE SEGMENT with manufacturing capabilty of upto 132 KV XLPE (Cross linked polythene)CABLES
Low tension,High Tension and PVC cables

-Clients include State Electricity Boards,Private Sector,Corporate companies etc

-Products includes HT,LT,EHV ower cables and control cables.
75% of company revenues come from High tension Cables and 25% of revenues come from Low Tension cables

Positives/Opportunies

-Future outlook looks bright with all time high order book as on 31st march,2015

-Launch Of deen dayal gram jyoti yojana of 43000 crores for rural areas augmention the transmission and sub transmission distribution infrastructure

-Approval of IPDS (Integrated power development scheme) of 32000 crores  for urban areas involving strengthning of sub transmission and distribution  infra.

-Identification of Power sector as a key sector and Power for all initiative



Recommended at current market price of 158

Lycos Internet /Ybrant Digital Value Pick Share

Background

-Ybrant digital offically named Lycos Internet,one of the first search engines on the world wide web.

-Pioneering in intelligent spidering search techonolgy

-Has three major divisions

-LYCOS Media-: which involves a network of websites lycos.com,tripod,angelfire,Gamesville,WhoWhere and LYCOS mail,have 40 local sites in 120 languages with a community spanning across 170 countries.

-LYCOS Advertising-:Services businesses,agenecies and online publishers worldwide in meeting their digital marketing needs.Clients includes MTV,Samsung,Viacom,Maruti Suzuki,Airtel,sony,Coca Cola,Star India,Lenovo,ING,British Airways,Qatar Airways,titan,Unilever,P&G,Hyundai Motors,Icici bank,LIC and ITC.
Serves 35-40 billion impressions across the globe

-LYCOS Life Dedicated to future of communication and Information in which everyday objects will be connected to Internet  also known as 'Internet of Things'.

Innovative products LYCOS Band and LYCOS Ring which does wireless tap to transfer functions,unlocks the phone with just a tap,pedometer ,calorie counter etc.
 and innovative service like LYCOS TV and ONETAG initated by LYCOS Media.

-Employs 500 people in 24 offices worldwide.

POSITIVES

-Revnues have increased from 35 crores in 2006 to 1650 crores in 2015(that's Something)

-LYCOS has established a relevant presence in Global digital marketing eco system which includes Affiliated with 2000 plus advertisers,140 plus agencies, Owned publishing network 28 million unique visitors per month.

-Complementary services based on In-house technolgies which includes Digital Media Planning and buying Customisable applications and Widget and Search optimization support and Managment.

Negatives/threats

-Rapid Technological entails huge capital investment and jeopardise business sustainability.

-Business can be affected by Privacy legislations and Regulations

-Enhanced Competition in US markets may squeze revenue and Margins


Highly Recommended at current price of 26.40

Wonderla Holidays Valuepick Share Multibagger

Background

-Company was founded in the year 2002 and promoted by V guard Industries promoters Mr. Chittilapilly
-Owns and operates two amusement parks in Kochi and Bangalore Respectively
-Planning to start a new park in Hyderabad 
-More than 1 Crore visitors till now in Kochi since 2000 and more than 75 lakhs in Bangalore since 2005

Positives

-Inhouse Manufacturing facility of Rides in Kochi gives a cost effective competitve edge over others thereby increasing profit margins

-Ample Land parcels available with the company which can be fruitful for further expansions
81 acres in Bangalore 93 acres in Kochi and 49 acres in Hyderabad
gives them an edge over new players since land acquisition for developing is a very expensive process now.

-Rise in disposable income among youth and Positioning of parks as tourist destinations like Disneyland etc basically a holiday destination rather 'one day outing' will be a driving factor  

-Turnover has increased from 91 crores in 2011 to 192 crores in 2015


Negatives

-Very Capital intensive industry and Long gestation period 

-Continuous investment  needed in branding and marketing efforts to avoid brand dilution

-Competition and Concentrated revenue stream Since Revenue mostly depends on entry tickets a  reduction in entry price by a competitor will affect its sales as well although there are currently no large parks operational in bangalore and Kochi.


Recommended at current price of 275

Anil Limited Value pick Multibagger

Background

-Pioneer in Corn wet milling business with 70 years of experience
-Products include Native strach,chemical starch,Modified starches,liquid glucose,corn syrup and sorbidol.
-Caters industries including textile,paper,food and beverages,pharmaceuticals and chemicals.

POSITIVES

-New product development including coating grade starch,binder for mosquito coil,coke briquette binder,instant laundry starch,high temperature resistance starch for oil drilling

-Client list includes big heavyweights of industry Heinz,Cadbury,Proctor & gamble,Nestle,Hindustan lever,Parle,Ravalgon,ITC,Coalgate,Arvind mills,Century textiles,etc

-International markets include middle east,japan,sri lanka,south afric etc

-Sales have increased to 824 crores

NEGATIVES

-High debt is a big concern for this company 





Recommended only for high risk investors at current price rs 200

Roto Pumps Valuepick Multibagger

Background

-Founded in the year 1968 by Ram Ratan Gupta to manufacture progressive capacity pumps
-Manufacturing processes in the field of metal cutting and rubber processing.
-Expanded its manufacturing base in Noida on 20000 sq meters land TRIPLING the company's capacity.
-Overseas warehouses and Marketing offices in Australia,UK,Germany.

POSITIVES

- Pumps are needed by many industries from waste water to oil and gas and Paper,Construction,food and beverages to shipping and many more.

-therefore its directly linked with the above industrialization and infrastructure development

-Ganga Revival Plan will be a big opportunity for the industry

-Set up of 100 smart cities and home for all by 2022 again will be a plus

-With the startup of German and US Subsidiaries Export markets will be in focus and expansion plans will be ongoing there providing opportunity to grow

-Export Sales have increased though domestic sales have come marginally down due to lower spending by government but Oil and Gas and Ma

ring and Naval Expansion and upgradation will be beneficial in future for Roto Pumps

NEGATIVES

-Threats from Competition have significantly affected sales and margins

-Cheap Imports from China and Overseas affecting sales

-Exchange rate fluctuations affects the margins as well Since major sales compromises of exports only.

Recommendation

Highly recommended at current market price of 76 rs.

SHILPI CABLE TECHNOLOGIES LTD- a Value Pick Share Multibagger

BACKGROUND

-Part of 30 years of Shilpi Group founded in the year 2006

-The product range include cables,copper wires,wiring harnesses,cable accessories.

-Catering to Automotive,telecom and consumer durable sectors

-Engaged with E&Y for it's growth plan

POSITIVES

- New Capacities in Aurangabad,bahadurgarh and hosure operational,Revenues will get a substantial boost from these capacities.

-Company has started exports also to south america,africa,middle east and south east asia.

-Launching a initiative in B2C Segment for house wire and switches which will give to revenue boost

-Mobile Penetration is increasing and so is data consumption it will be imperative for telecom companies for solutions to address and capacity issues which is crucial for company's growth

-Vehicular production is increasing every year inturn consumption of domestic components is driven which is a growth opportunity for the company supplying cables

THREATS NEGATIVES

-Slow down in the economy is a major threat since its market is consumer companies driven.

-Ever increasing input costs for wire and cables 

-Although promoters have increased their share holding but they have pledged 78% of their shares which can have a negative impact on its share price.

CONCLUSION

Very good at cmp of 50.20 right now for high risk investors only.

FEW COMMON MISTAKES COMMITTED BY INVESTORS

1.) Indian consumers are great at bargaining items in the shopping market and finding great deals but when it comes to stock market they are not always value minded .Please do your homework before investing in any Stock,Commodity or any financial instrument.

2.) Behavioral mistake thinking that In front of the trading screen,you are a better stock picker or a gifted person with special power ,its not the reality .
Pick stocks on the basis of  analysis and due diligence.
Its your hard earned money.

Do not getting emotionally attached with stocks.You have EMOTIONS but Stocks/Companies, they don't have any.

3.)Constantly moving money around is costly and ill advised and at the same time a set and forget it can be just as damaging.
Give some time to stocks decide what you want short term or medium term gains or long term gains do profit booking accordingly then re invest in market.But generally Ideal is hold it for medium term atleast,long term will be great but donot forget it completely keep yourself update with whats happening in the companies of which stocks you hold.

4.)Buying whatever is performing well thinking they have missed on something and buying at higher prices like people buying gold and silver at higher prices few years down the line their investment has gone down as much as 50% , a classic example of Asset bubble.

Buying something which has performed well in past very few times its a reason to buy but assuming that share will rise because it has in past is road to ruins.

5.)Don't focus on one sector ,DIVERSIFY is the key Complete absence of Diversification can be a painful experience.

6.)Don't rush in,building positions on stocks ,keep cash in hand,invest in more measured fashion


7.)Last but not the least DON'T GIVE UP-Most common mistake is giving up and closing down their investment after a bad start.The key is not to make same mistake again and keep an open mind.

AVT NATURAL PRODUCTS LIMITED_BRIGHT FUTURE

BACKGROUND

-Promoted by AV Thomas Group specialising in extraction of colors and flavours from Natural Resources set up in 1996

-Marigold cultivation in 35000 acres of land with 100000 metric tonnes production with 30000 farmers on contract.

-Located in Kochi, Kerala and Post harvest Processing centres in Tamil Nadu and Karnatka.

-




POSITIVES

-AVT is in Proximity to the source raw materials and logistical advantage of import and export facilities with sea,air and road within its reach.

-Revival of feed grade price and in food grades,volumes has been dropped to meet client requirement

-Focus on innovation developing high yield hybrid for marigold production will be cost effecient

-in spices,high value niche products has paid off well

-made investments in Decaf business

-instant tea business is a challenge but since it's first supplies,future looks bright

-


Negatives

-Volatility of rupee is not encouraging

-has made new investments,time is required to establish in those markets

Recommended at current price of 30.80 rs

NAVNEET EDUCATION LTD Proven winner Stock , holds a lot of value!!

BACKGROUND

-Set up in 1959 is an educational syllabus based content provider in print and digital medium

Manufacturer of Scholastic paper stationary and publisher of general and Children books

-Published more than 5000 titles

-Products sold under the names 'Navneet',Vikas,Gala,Grafalco,FfUunN and Boss.

-State of Art Manufactruing facilities in Virar,Guma,Dantali,Silvassa.

-Ventured into Digital Learning with  eSense in 2009,used by 15500 classrooms uptil 2015 in Gujarat and Maharashtra.

-Forayed into Pre School Business under the name 'Leapbridge Education' with 7 Pre schools in Pune and Mumbai

-Acquired a minority stake in School Management company owning 61 state board schools in Andhra Pradesh and 12 cbse schools in Maharashtra.

POSITIVES

-Stationary segment grew 17% year on year basis

-Digital learning will continue to perform better with more penetration in state board schools in Gujrat and Maharasthra.

-Dominant Market share in Western India of approx 65%

-Exports of paper stationary adding up to volumes

NEGATIVES

-Rising Input cost ever increasing raw material costs

-Companies relies on intellectual property rights and propritory right which may not be adequately protected under current laws and the industry is prone to defamation suits etc

-Highly competitive industry with lot of changes happening every moment and need to adapt those changes to remain in business.

Highly Recommended at current market price of 94 rs for medium to long term.

NARMADA GELATINES Value Pick Multi Bagger

BACKGROUND

-Set up in 1961 also known as shaw wallace gelatines ,located in Madhya Pradesh

-Does Manufacturing of Ossein and Gelatines abd by product di calcium phosphate 

-Gelatine is natural animal protein composed of various amino acids required for human nutrition.

-Wide usage in pharmaceutical,edible,photographic and other technical industries.

-The Company Was awarded Capexil award for gelatine exports

-Sound Management team including a director of gelatine manufacturing association of asia pacific



STRENGTHS

-Gelatine is a only natural gelling protein of commercial inportance ,there is no satisfactory alternative or substitute for gelatine.

-Rapid growth of pharmaceutical industry in india and across the globe which drives the gelatine industry.

-Growing use of gelatine in Food and beverages  and Cosmetics industries

-The office international des epizooties ,paris  contiued the status of india as 'Negligible risk' as far as BSE categorisation is concerned which is a good opportunity for this industry.

-Strategically located in Madhya Pradesh close to its essential inputs .

-Total Revenues increased from 87 crores in 2009-10 to 140 crores in 2014.

-

NEGATIVES

-Upward trend in raw materials and non availability of good quality raw materials

-import of poor quality gelatin in India which is a health concern too and affects proper price realisation for domestic players

-Alternatives for the by-product DCP(Di Calcium Phosphate)are emerging could be a concern in future

-Growing regulatory issues in food and Pharma industry directly affects players in this industry.



Recommended at current market price of 145 for long term .

Stock Updates

Sunil Hitech-

Just after 2 months of recommendation at rs 150 ,it reached Rs  314  (doubled) on 7th on July currently trading at 275 still recommended to hold.

Waterbase Ltd-

Recommended at rs 49,Reached  Rs 91(appreciation of 80%) on 15th of July,currently trading at rs 84 still recommended to hold.

All Other shares still recommended to hold.

JINDAL STAINLESS-Growth Unlimited

BACKGROUND

Jindal Stainless, a part of the $ 18 billion USD, OP Jindal group is the largest integrated 

manufacturer of stainless steel in India and is ranked amongst the top 10 stainless steel manufacturers in the world, with a capacity of 1.8 million tons.

JSL product range includes: Ferro Alloys, Stainless Steel Slabs, Blooms, Hot Rolled Coils, Plates and Cold Rolled Coils/ Sheets, Stainless Steel Strips for Razor Blade Steel and Coin Blanks for mints in India & EU.

FINANCIAL PERFORMANCE JSL’s (Standalone) gross revenue for the financial year ended 31st March, 2014 at `12,942 crore as against `11,091 crore in fy 12-13, has been highest ever, a growth of 17% year-on-year, mainly due to increased volume of sales at the new plant at Jajpur. Exports sales surged to `3,482 crore from `3,220 crore in fy 12-13 with year-on-year growth of 8% and Domestic sales grew by 20% to `9,460 crore from `7,871 crore in fy 12-13. Profit before depreciation, interest and taxes stood at `886 crore as against `615 crore in fy 12-13.

POSITIVES

Today with a crude stainless steel production of 3 mmt, India ranks as the third largest producer and second largest consumer of Stainless Steel.

Over the past 5 years imports from China have gone up by close to 700%. Apart from dumping activities, large scale circumvention of import duties is also rampant. But, with new government promising to focus on growth of domestic manufacturing and on the infrastructure sector,stainless steel sector will get a boost.

Strong sales push in hitherto less penetrated market segments like nuclear power, industrial, process industries, oil & gas and kitchenware segments in domestic market contributed significantly to this growth.Special drive has been organized in hitherto untapped segments like elevators, pumps, plumbing, sugar, rice and petrochemical industries.

Promoters stake has increased.

NEGATIVES

Company has low interest coverage ratio.

Company has a low return on equity of -28.12% for last 3 years.

Contingent liabilities of Rs.5134.92 Cr.

Promoters have pledged 71.84% of their holding

Highly recommended at cmp 41 price right for medium to long term perspective.

NITIN FIRE PROTECTION - Value Pick Multibagger

Nitin Fire Protection

Background

-Promoted by Nitin Shah manufacturing Fire extinguishers and fire fighting equipments

-Existence in fire protection space since 29 years, have expanded foot hold not only in India but also in United Arab Emirates, South Asia & Europe.

-NFPIL is associated with Beijing Tianhai Industry Company Ltd. (B.T.I.C), China for contract manufacturing of High Pressure Seamless Cylinders for Industrial Gases(BTIC got manufacturing capacity of 1.5 million  cylinders per Annum ) 

-Diversification in CNG by forming Nitin Cylinders Ltd., Manufacturer’s of High Pressure Seamless Cylinders, having manufacturing facility at Vishakapatnam SEZ, Andhra Pradesh and Divestment joint venture with Worthingtion Industries limited 

-Acquired 40% stake in a Dubai based fire protection company ‘NEW AGE COMPANY – LLC’ 

Major Clients

INOX Air Products, Indraprastha Gas Limited (IGL), BOC, Praxair, Air Liquide etc.

Positives

-large scale fire protection system installation  across india (5000 direct and 20000 indirect)

-Revenue increase by 44% post Middle East venture

- Factors contributing growth 

A) Increasing awareness through media for protection from fire 

B) Threat of heavy losses due to fire 

C)Strict rules by Governement for fire protection

-55% of revenue comes from UAE 

world expo 2020 will be held in UAE will push the growth further in this market.

Negatives

-Despite a lot of media,ignorance is still there among small and medium companies and cooperative residential societies which hinders it's growth 

Conclusion

At Cmp 36.5,it's superbly attractive !!a definite buy!!

Nikhil Adhesives - WoW Value Pick

 NIKHIL ADHESIVES 

Background 

-Manufacturing various types of polymer emulsions that are used for different applications. 

-In this business for over 28 years and has three manufacturing units located at Dahanu (Maharashtra), Silvassa(Gujarat) and at Dahej(Gujarat). 

-The current production capacity is 60000T p.a. which can be enhanced. 

-Acquired the emulsion business of Mafatlal Dyes & Chemicals Ltd. in 2003 and its products are sold under the brand name Mahacol,Emditex, Emdilith, Emdicryl

Positives/Strengths

-Strengthened Brand Image resulting in sales growth of 26%

-Addition of capacity at Dahej plant lead Production capacity increase by 13%

-Backward integration by manufacturing Plasticizers important ingredient of emulsions

-Dividend payout is at 32.5% which is very satisfactory.

Negatives/Risks

- Fluctuating Foreign Exchange lead to loss due to import of raw material

-Slow pace of growth in Construction Sector 

-Increase in the cost of Vinyl acetate monomer important raw material for manufacturing emulsions.

Conclusion

Highly recommended at current market price of 33.5

Munjal Auto Industries Ltd- a multi-bagger Value Pick to bet on

Background 

-Munjal Auto Industries Ltd., (MAIL) promoted by Munjals(Hero group) is a TS 16949 and ISO 14001 accredited, leading auto component manufacturing company in India producing Exhaust systems complete for two wheelers and four wheelers, Spoke rims for two wheelers, Steel Wheel Rims for Two Wheelers and Four Wheelers, Fuel Tanks for Four wheelers, Seat Frames for four wheelers and other automotive assemblies.

-Technical collaboration with Samsung Industries Ltd. of Korea for the manufacture of Fuel Tanks for Four Wheelers. 

-The largest manufacturer of the exhaust systems in the world, manufacturing close to 22,000 systems per day. Besides the company produces more than 10,000 spoke rims for motorcycles and steel wheel rims every day.

Major Clients

Tata Motors limited

Tata Johnson Controls Automative Limited

Piaggio Vehicles

General Motors India

Hero Motocorp limited

Suzlon

Risks/Threats

-Hero Motors contributes maximum to the revenue,one customer concentration

-Fuel price increase has an adverse impact in automobile industry,it's a concurrent feature in india barring last 10 months when internationally oil is down.

-Environment Regulations

-Increase in the price of raw materials — nickel, paints, steel, etc.

-Fierce competition from organised and unorganised players in the auto ancillary sector.

Positives

-Strong Experienced Management support 

-continuous research and development 

-very wide product range which includes both for two wheeler and four wheeler.

-largest exhaust systems manufacturer

-Healthy dividend payout

-Good free Cash Flows

-debt is reduced 

RECOMMENDATION

At current market price of 75,the company looks really attractive and under valued.Its highly recommended at this price.

Sunil Hi Tech Engineers Limited - Growing Value Company

SUNIL HITECH ENGINEERS LIMITED

Background
Sunil Hitech was incorporated on 29th May 1998. 

Engaged in the niche segment of Fabrication, Erection & Testing and Commissioning of 

Bunkers, ESPs, Boilers, TG sets in the Power Plants, both in Private & Public sector.

Habit of Fast track Completion of Projects(Ironic for Indian Companies)

Few examples 

Fast track construction of 500 MW, 7th unit at Chandrapur, Completed 8500 MT of Power House Structures in 18 months against 24 months schedule.

Fast track construction JPL’s 2x250MW, Raigad Project and completed TG area structural works with an achievement of 13200MT of Fabrication & 11500MT of erection in a year.

U-2 Chandrapur STPS Completed Reheater replacement within the scheduled time of 25 days & complete total replacement of Condenser Tubes in a record time of 35 days

Completed total replacement of LTSH, Economiser Coils, HRH including Hangers, terminal 

and supply tubes replacement was done in a span of 25 days involving 5400 HP Joint 

at Tuticorin TNEB.

CLIENT LIST
The Company’s customer portfolio comprises reputed names like the NTPC, Chhattisgarh State Power Generation, BHEL, BALCO, Reliance Energy, Jaypee Group, JSW Steel, Punj Lloyd, Tata Projects, Adani Power, L&T, RINL, Mahadiscom, Hindalco, Dodson-Lindblom, Maharashtra State Transmission, Tamil Nadu Electricity Board, Skoda Exports, Punjab PWD, Gujarat State Electricity Corporation

Positives

Revenue CAGR of 15.32% over the past five years 

Strong EBIDTA CAGR of 7.30% over the past five years 

Net profit CAGR of 2.51% over the past five years Consistent dividend payout; cumulative dividend distribution of 5.65 crore over past 5 years

Negatives

Debt is over 380 crores

Recommendation

Highly recommended at current market price of Rs 150 .

Waterbase limited- a promising Value Pick multibagger

Waterbase Limited- a promising multi bagger

Another Avanti Feeds in Making!!

Based in Nellore, Andhra Pradesh

Background 

-Waterbase Ltd was the first to introduce Feed for the Vannamei Species in India and today has a very dominant share of the Vannamei Species feed Market. 
-The Company has a well established distribution network and is well respected for its Technical excellence.
-The Company today is working to full capacity in its feed mill and has invested in additional
Machinery to enhance its capacity to meet the demands. Presently Vannamei species has been
extensively introduced in Andhra Pradesh and it is expected that once infrastructure is in place
it will be introduced in the other states of Orissa, Tamil Nadu, West Bengal, Gujarat and
Maharashtra.

-The reduction in the Anti-dumping duty by United States and decreasing exports from other South East Asian countries especially Thailand helped to increase the exports of Shrimps from India. The overall industry's Shrimp Export grew by about 33.50% over the previous year.

Threats / Risks and concerns 

-An unfavourable monsoon would lead to increased input costs like feed and in turn may affect the growth of shrmp farmers. Delayed monsoon has affected power generation in Andhra Pradesh, which is one of the major producers of Vannamei shrimps. 

- The price of Raw Materials like Soya, Fish meal, Wheat etc have risen to record highs which continue to be of concern to the industry. 

-Disease has devastated the shrimp industry in Thailand, Vietnam, China and Malaysia over the last few years. India has been free of disease but like all living technologies, this continues to be a threat.

Performance of the Company
The company has performed well over the last year. The Turnover has increased by 45% and the profit before tax increased by 169%.

Positives

Company has reduced debt from 25.11 crores to 11.85 crores nearly halved it.

Promoter's stake has increased

Net Profit after tax increased from 13.57 to 18.01 crores

Negatives

Company is not paying dividends despite with increased profits.

Conclusion
At the CMP of 49.5 rs and a market cap of around 190cr, this is a great level to enter the stock for medium to long term.It is for high risk investors.