Warren Buffett Quotes

Tuesday, April 15, 2014

PAPER PRODUCTS / SEQUENT SCIENTIFIC - UPDATES

PAPER PRODUCTS LTD


Paper products recommended @ Rs.61 ( Recommendation HERE) hits its life time high (adjusted to stock split)   today @ Rs.102 . Still recommending to HOLD this MNC stock for long term

SEQUENT SCIENTIFIC LTD

This stock initially recommended to Rs.138 and repeatedly requested to HOLD despite poor working results thereafter .Today stock hits its 52 week high @ Rs.235 .I believe company is now started the ground work to become a niche play in selected segments and recent exit from specialty chemical business and formation of new joint venture company with Shasun Pharma is only a beginning in this direction. After subscribing lot of shares through preferential offer in last two years,promoters recently acquired shares from open market too even at a price higher than Rs.200. Requesting to HOLD this stock with patience for long term.

You can access detailed report on this stock HERE


Saturday, April 12, 2014

PANACEA BIOTEC LTD - REPEAT







No introduction about Panacea Biotec is necessary to my regular readers.We have discussed more than once about the reasons for a sharp fall in its share price from  Rs.400 level to below Rs.100 level. Panacea Biotec – the second largest vaccine maker in our country – passes through  some tough business environment   during past 3-4 years.Earlier many of its vaccines excluded from  the WHO per-qualification criteria  and debt related issues resulted in erosion of more than 50% of its peak net worth. Now ,after many quality related inspections  UNICEF permitted the company to resume the supply of vaccines. (  Read details HERE) . On the other side company is in the process of reducing its debt burden and already admitted for a CDR.I believe ,this is the turn around time for Panacea Biotec and the right entry point too .Company is expected to report better numbers from this quarter onwards and strongly recommending to enter in Panacea at CMP of Rs.107 with a medium to long term view. Stock listed in both exchanges .

Link to Company Website HERE



Disc : I have vested interest in Panacea Biotec 

Thursday, April 10, 2014

CANFIN HOMES - UPDATE

Canfin Homes earlier recommended @ Rs.145 ( Old posting HERE) , hits its life time high Yesterday  @ Rs.225 .Still requesting to HOLD this stock for long term.

Monday, April 7, 2014

RHODIA INDIA ( FORMERLY ALBRIGHT AND WILSON CHEMICALS) - EXIT






Rhodia India earlier  recommended @ Rs.185  ( Old posting HERE) which is currently trading around Rs.1160. At current market price,this stock appreciated more than  500 % from initially recommended level.Recently its parent company accepted a de-listing price of Rs.1200 and currently stock is trading just  below Rs.40 of this de-listing price.Since security transaction tax ( STT) is not payable while offering shares directly to the company ,investors may liable to pay higher level of tax if offering the shares in de-listing offer .Hence requesting to completely EXIT from this stock through market .
 
                                                                       I hope at least few of my readers with enough patience enjoying this 500% return in 3 year time period .

Happy Investing

Saturday, April 5, 2014

GTS-5 ANSWER ------- PANASONIC ENERGY INDIA COMPANY LTD





Panasonic Energy India Company is a 58 % subsidiary of Japanese multinational electronics company  Panasonic Corporation. Company is the manufacturer of  batteries and lighting products india. It is one of the top three producers of these products and selling under two brands- NOVINO and Panasonic.Company selling Zinc Carbon batteries,Alkaline Batteries,Rechargable Batteries and Torches.PEIL having two manufacturing facilities in India ,one each at Vadodara( Gujarat and Pitambur ( Madhya Pradesh)  .India is a country with very low per capita consumption of batteries compared with many other countries which is expected to grow going forward.Potential  of battery operated electronic components like remote control,toys ..etc are increasing and this trend offering the possibility of  steady growth .Recently company introduced rechargeable batteries under the brand “SANYO –Eneloop” .Company sourcing part of its raw material requirements from overseas and any appreciation in Rupee will help the company to increase margins.Even in adverse exchange ratio situation in past few quarters ,company reported better numbers by increasing operational efficiency.


Valuation and Recommendation


Company reported a turnover of Rs.174 Cr  and a net profit of Rs.5.04 Cr in 9 months ending December where as its last full year profit was only Rs.2.46 Cr .Company is expected to report an EPS of Rs.9-10 in full year v/s Rs.3.28 reported  last year . In FY 2012-13  company distributed a dividend of 20 % and it may hike  to 25 or 30 % in this year.

                                                                                     On valuation basis this stock is not too much expensive even at current level but it appreciated substantially (about 20 % ) in last week alone ,hence we can’t rule out the chance for a mild correction .Because of this reason  recommending to enter after a consolidation if you  are an investor with  low to medium risk appetite.

Link to company website HERE

Disc : I have vested interest in PEIL 

Friday, April 4, 2014

GTS - 5 - UPDATE

This time received 72 correct answers from the following readers in my e-mail and as comments below the post.


ABHIJEET MUKHARJEE
ABHISHEK KARWA
ACHIN JAIN
AKHILESH JHAWAR
AMEEDUDDIN MOHAMMED
AMIT
ANAD KUMAR JHA
ANAND GADIYAR
ANAND PATEL
ANANDAMURTHY K.
ANKIT KHEMKA
ANSHUL BHAL
ARAVIND BODDUPALLI
ARAVIND DESHPANDE
ARUN KP
ASHISH
ATUL
AVANI DHRUV
BALASUBRAMANIAN KRISHNAMURTHI 
CHIRAG KARANI
DEEPAK KUMAR PRASAD
DEVARAJ MANOHAR
GIRISH NALGIRKAR
HARESH PHULWANI
HARSHAD DESHPANDE
JOE ALEX
KHALID MOHD
KISHAN RAVIA
KJB MATHEW
MADAN MOHAN
MANAS DAS
MAYUR AGARWAL
MAYUR NARSUDE
MEGHA DESHPANDE
MEHUL B SONI
MIDHUN MANHAS
MUTHU KUMAR
NAGARAJ AKKILI
NAGARAJAN T
NAOMIE MREDHA
NAWAZ QUADRI
NILESH BUTALA
NITHIN JAMES
NITIN AGGARWAL
NITIN JAMES
OM PRAKASH CHOPRA
PRAKASH K
R.MATHI
RAHUL
RAHUL BINNANI
RAM GOPAL DHAKA
RAVI VAKAYIL
RAVIRAJ BHAT
RISHU GARG
SANIA
SANJAY SHARMA
SANKET CHAUDHARI
SANTHOSH KUMAR S.
SHAHEER EDAKKAZHIYUR
SHAWN SUNNY
SHEKHAR
SONIA KAPUR
SOURABH AGARWAL
SUMANT BHADRI
SUNIL BALE
SUNIL LATTHE
SUSHIL GUPTA
T S REDDY
THIRUPPATHI RAJ
TUSHAR BAJPAI
VARUN GOENKA
VEERENDRA KUMAR JAIN
VIKAS JOSEPH
VISHAL PALIWAL

Tuesday, April 1, 2014

GUESS THIS STOCK -5







 
Thanks for your overwhelming response to previous questions in this series.This is the fifth one .Try to find out the name of company from the below indications and send it to valuepick@rediffmail.com by Friday noon. Name of readers with the correct answer will be posted on Friday Evening .It is only an effort to stimulate your thought process , stock picking skills and to familiarize some unknown stocks , never take it as a competition .

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# Only few companies operating in this sector with a nationwide marketing network


# Company is one among the largest five producers of its product in India 


# Company is a debt free one


# It reported top line growth continuously in past five years without any interruption 


# Company is  a big beneficiary of Rupee appreciation 


# Its current total market cap is ¼ of its last year  top-line.


# Company never skipped dividend in last 12 years


# Company reported more than 100 % increase in net profit in this 9 months itself over last full year.

# Promoter stake under single entity /Individual is more than 50 % in this company

# Its  Face Value  is Rs 10.

# Stock not recommended earlier
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* Please don't expect any reply related with correct answer before Saturday.




Saturday, March 29, 2014

CAMPHOR & ALLIED PRODUCTS LTD - JOINING HANDS WITH A WORLD LEADER















 Camphor and Allied Product is a niche play in Indian Specialty Chemical Segment. It is  the largest exporter of specialty aroma chemicals from India . Its product range includes fragrance chemicals such as amberone, pharmaceutical products like  camphor and terpineols, aromatic chemicals like  citwanene, and  industrial chemicals such as alpha pinene.This company taken over by one of India’s largest fragrance manufacturer Oriental Aromatics Limited in 2008 at a price of Rs.167 per share.Using the modern technology of Dupont ,USA  CAPL is the largest manufacturer and pioneer in Turpine Chemistry in India. Company’s  products are mainly  exported to Europe, UK and US for use in flavours, fragrances, pharmaceuticals, soaps, cosmetics, tyres, paints , varnishes...etc.

                                                                                           Not only the status of India’s largest aroma chemicals manufacturer but its new relation with  AganAroma & Fine Chemicals    which is a subsidiary of Makhteshim Agan Group -an affiliate of ChemChina - ( Chem China is  the largest Chinese chemical company ) creating interest in CAPL . As per the agreement with Agan  ,high margin products produced at company’s new plant located at Vadodara will be marketed by Agan worldwide . Agan will also provide technology expertise to camphor. Company claiming this  is the world’s most advanced plant for manufacturing high margin Musk and related products.Last year company started commercial production from this facility and the recent results of the company speaking for itself.

Now company is planning to give priority to reduce its debt .Last year company sold a non core land asset to limit the dependency of debt for setting up the new plant.Last year company also skipped the dividend due to this reason .With robust performance in  ongoing financial year ,let us hope the company will back to dividend list in this year.In the latest  December quarter  CAPL reported a turnover of Rs.77 Cr ( last year same period Rs.54 Cr) and net profit of Rs.8.20 ( Rs.4.5 Cr) .For the nine months  of this FY ,CAPL reported a net profit  of Rs.14.53 Cr and an EPS of Rs.28.30 .Now company completed major capex and result of the same started to flow .



                                       Click on the figure for a better view


CAPL  is  in a  niche segment backed with strong support of a world leader but  a less researched company  by market participants  . With revival in western economies, scaling up the production capacity to full utilization level ( Currently around 75-80 % level) , reduction in debt using improving cash flow ,possibility for  further expansion in relationship with Agan  ..etc ,  company is expected to report even  better numbers going forward.


Recommending to invest with a long term view at CMP of Rs.182 .Stock listed only in BSE


Link to Company website HERE

Link to Agan Aroma HERE

Link to Makhteshim Agan Group Web site HERE

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



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