Stock Martket BSE » multibagger indian stocks

Redington India – Stock Investment

admin — Thu, 05 Jan 2012 03:44:27 +0000

Redington India is a Chennai based and a young company whose stock fell to a low of Rs 66.50 in late January, 2011. For many stock market analysts who think this company as a future bluechip one, that fall provided an opportunity of picking it up at a cheap price.

This, coupled with highly improved quarterly working results as announced by the company made the share go back on rising track. The share, therefore, reached a high of Rs 102 sometime n July, 2011. However, by the time the share reached this peak, the markets had already turned extremely bearish and that ultimately pulled this share down to a low of Rs 65.05 on Monday of the previous week. The Rs 65.05 bottom being almost identical to that of Rs 66.50 of January, 2011 attracted many long-term buyers once again for falling for it they thought the share had reached a level from where it could once again rise. They proved to be right as the share then entered a rising trend and in the last week, when the markets were marked down every successive day from Tuesday till Friday, the share of Redington recorded gains every successive day. The share has thus entered a fresh bullish phase and can be expected to go further up in the days to come in a favourable market, and therefore, suggested for buying at every decline.

Orchid Chemicals – stock investment

admin — Wed, 16 Nov 2011 02:26:08 +0000

Orchid Chemical

BSE ID : 524372

NSE ID : ORCHIDCHEM

CURRENT PRICE 159.10

Established in 1992 as an export-oriented unit (EOU), Orchid Chemicals & Pharmaceuticals Ltd. (Orchid) is a vertically integrated company spanning the entire pharmaceutical value chain from discovery to delivery with established credentials in research, manufacturing and marketing. We today rank among the top 15 pharmaceutical companies in India and enjoy a multi-therapeutic presence across segments.

For FY11, on a consolidated basis, company reported total income of Rs. 1,786 crore and earned PAT of Rs. 156 crore. EPS for the year was Rs. 22.64. This results in historic PE of 8.2 times.

During H1FY12, total income on a consolidated basis was Rs. 915 crore, while PAT was Rs. 38 crore, resulting in EPS of Rs. 5.34.

But for the exceptional losses (pre-tax) of Rs. 77 crore on account of exchange loss on FCCBs in Q2FY12 and Rs. 11 crore for one-time closure cost of a plant for some time, the PAT was lower. However write-back of provisions on account of reversal of rebates and discounts of Rs. 80 crore (post-tax) did off-set the same.
On the operating front i.e. EBITDA level, performance was on expected lines with margins being in the lower twenty percentage range. EBITDA for the first half of FY12 stood at 195 crore as against Rs. 420 crore earned in FY11, with margins being 21% and 23% respectively.

During FY11, company acquired a US-based marketing company Karalex Pharma LLC to strengthen its presence in the regulated US market.

As on 30th September 2011, company’s equity stood at Rs. 70.44 crore, of which 29.83% was held by promoters while 18.30% was under institutional holding

Thermax – stock investment

admin — Mon, 17 Oct 2011 02:26:02 +0000

Thermax

BSE ID : 500411

NSE ID : THERMAX

CURRENT PRICE 425.25

Thermax Ltd. is an INR 4,935 crore (USD 1.11 Billion) company, providing a range of engineering solutions to the energy and environment sectors

Thermax Ltd, eadquartered in Pune, India and operate globally through 19 International offices, 12 Sales & Service offices and 4 Manufacturing facilities – three of which are in India and one in China.

The domestic market has shown a growth of 28.3%, and the export revenue has grown by 54.1%. Energy segment has contributed 77% and remaining 23% has come from environment for the current quarter. Barring Chinese subsidiary, which is the new company, all subsidiaries are in the profit in Q1FY12

Operating profit surged to Rs.1136.94 million from the corresponding quarter previous year of Rs.959.67 million

Supreme Industries – stock investment

admin — Sun, 18 Sep 2011 06:59:05 +0000

BSE : 509930

CMP : 206.55

Supreme Industries (SIL) is acknowledged as the leader in plastics industry in India, processing over 200,000 tonnes of polymers annually. It offers a wide range of plastic products, categorised into four broad heads—plastic piping and fitting system (44 per cent), consumer products (11 per cent), industrial products (21 per cent) and packaging products (24 per cent). SIL’s 60 crore of export products reach over 20 countries, including the UK, Australia and countries in the Middle East.

Financial performance

Over the past 10 years, the company’s turnover and profit has grown at a compounded rate of 17 per cent and 36 per cent, respectively. The returns on capital has improved from 9.76 per cent in June 2001 to 39.80 per cent in June 2011. Products made by the company are either to meet just-in-time customers’ requirements, or freight intensive products, or patented products where the company is enjoying exclusive right to produce in this part of the world. Thus, Supreme has managed to hold its gross profit margins at 14-15 per cent in the recent years.

The company lias been in capacity expansion mode and has planned to achieve a processing capacity of 5,9 5,000 tonnes in 2014-15 from the current capacity of 2,03,530 tonnes. Going by the good growth potential in all the product segments where the company operates, and due to the increased demand coming from automotive, agriculture, industrial and consumer sectors, SIL at the current price of 208.70 and a price- earning-ratio of 15 offers good value to long-term investors.

EdServ – Stock Investment

admin — Tue, 16 Aug 2011 03:14:48 +0000

EdServ is World’s first 4th generation education company that uses technology to efficiently synchronize manpower demand and supply in number and skills right from development to deployment.

EdServ Softsystems Limited is incepted in Mar 2001 as Lambent Softsystems P Ltd., with an objective of providing niche training solutions, customised software solutions, and placement consulting on contract as well as permanent basis to both Corporate and Institutional clients. The company successfully provided staffing solutions to premier clients during 2002 to 2004

The company has developed web based applications and mobile applications which will enable users to access Edserv turorials and other career related services on mobile. The company has created applications on various formats including applications for Blackberry and for Smartphone and has tied up with Blackberry and Samsung

The company has achieved over 100% jump in Sales Revenues, OPM of over 47% and a PAT of Rs.41.22 crores resulting in an EPS of Rs.27. At the CMP of Rs.137, the stock trades at a PE Multiple of 5.10.

Crompton Greaves – Stocks To Watch

admin — Fri, 05 Aug 2011 03:33:32 +0000

Crompton Greaves

BSE – 500093

CMP – 160

CGL is a leading player in the power transmission and distribution (T&D) equipment and services business in India. In an industry dominated at the top echelons by large MNCs, the company is India’s largest private sector enterprise engaged in designing, manufacturing and marketing high technology electrical products and services related to power generation, transmission, distribution as well as executing turnkey projects. CGL is organised into three business segments viz., Power Systems, Industrial Systems, and Consumer Products. Presently, the company is offering a wide range of products such as power and industrial transformers, high-tension circuit breakers, railway signaling equipments, lighting products, fans, pumps etc

The company’s recent performance has been dampened by slow order inflow from the power systems segment. Further, rise in commodity prices and execution of few legacy orders with high input costs led to margin erosion. Issues pertaining to land acquisition, lack of coal linkages, delayed environmental clearances and rising cost of funds have dogged the power sector which happens to be CGL’s largest source of income.

Debt to equity ratio: A highly leveraged business is the first to get hit during times of economic downturn, as companies have to consistently pay interest costs, despite lower profitability. Considering CGL’s average debt equity ratio of 0.2 over the past three years which we expect to decline to 0.1 over the next three, the rating assigned to the stock is 8.

Bharat Heavy Electricals – Stock Investment

admin — Fri, 05 Aug 2011 03:29:06 +0000

Bharat Heavy Electricals Ltd

Bharat Heavy Electricals Limited (BHEL) is India’s largest public sector engineering company catering to the power and infrastructure sectors. The company has a 25-year history of consistent profitability and manufactures over 180 products for industries like power generation and distribution, transportation, and renewable energy. The company’s operations are organised around two major business segments – power (79% of FY11 revenues) and industry (21%). The company has around 46,000 employees and 15 manufacturing units. The company currently has an equipment manufacturing capacity of 15,000 MW, which it plans to take up to 20,000 MW by the end of March 2012.

Sales: BHEL has earned average annual revenue of about US$ 6.1 bn over the last five years. The company earned around US$ 9.2 bn in sales in FY11 itself. BHEL’s size and scale of operations gives us a lot of comfort. We thus assign a low-risk rating of 10 to the stock on this parameter.

Long term EPS growth: BHEL has grown its net profits at a CAGR of 28.1% in the past three years. Further, during the next three years, we expect the CAGR in profits to be 10.9%. As such, the rating assigned to the stock on this factor is 6.

Dividend payout: A stable dividend history inspires confidence in the management’s intentions of rewarding shareholders. BHEL’s average payout ratio has been 26.2% over the past five fiscals, which we expect to be around 25.4% during the next three. Thus, we have assigned a rating of 7.

Zee Entertainment – Stocks To Watch

admin — Sat, 23 Jul 2011 02:58:54 +0000

Zee Entertainment (Zee) is India’s largest vertically integrated media and entertainment company, encompassing the content-to-consumer value chain; television content, broadcasting, cable networks, films, music and animation. Zee TV is India’s first private TV channel and covers nearly 95 million Indian television homes. It reaches an estimated 500 m people across 167 countries. Though the channel did not face competition in the initial years of its launch, it has been losing market share in recent years to competition from other channels like Colors and Sony.

Sales: Zee Entertainment’s revenues have been fluctuating in the past 3 years. On an average the sales has been equal to 547 US$ mn. Going forward, the company is expected to earn a CAGR of 12% over the next three years. Since, the sales have not grown consistently; we assign medium risk with a rating of 4.

Long-term EPS growth: We expect the company’s net profit to grow at a CAGR of 16% between FY11 and FY13 (CAGR of 18% during FY08-FY11). We believe that the current advertising scenario is only a short term phenomenon and would improve in the next couple of years. Thus, we rate the stock at 5 based on this parameter.

Dividend payout: Zee Entertainment had an average dividend payout of 24% over the last 3 years. We expect a dividend payout of 25% going forward as well. The rating assigned on this parameter is 5.5.

Promoter holding: A larger share of promoter holding indicates the confidence of people who run the company. We believe that a greater than 40% promoter holding indicates safety for retail investors. At the end of June 2011, the promoter holding in Zee Entertainment stood at 43%. We have thus assigned a low-risk rating of 7 to the stock.

Debt to equity ratio: A highly leveraged business is the first to get hit during times of economic downturn, as companies have to consistently pay interest costs, despite lower profitability. We believe that a debt to equity ratio of greater than 1 is a high-risk proposition. Zee Entertainment has been paying off its debt thereby reducing the debt to equity ratio. At present the debt to equity is negligible and it has been 0.1 for the last three years on average. We assign a low risk rating of 8.5 on this.

Setco Automtotive – Stock Investment

admin — Mon, 18 Jul 2011 02:46:51 +0000

Setco Automtotive Limited (estd 1982) was jointly promoted by the Sheth Family & The Govt. of Gujarat. In 1984 the Company Kalol Plant went into Production of Clutches for the Automotive Industry in a small way.

Setco Automotive is a premier manufacturer of clutch products for the Automotive and hydraulic products for Construction Equipment Industry. In addition Setco also manufactures precision engineering components like complex and deep drawn pressings and forgings and castings that are machined and heat treated.

Setco Automotive posted stellar performance for quarter as well as FY11 with a consolidated turnover of Rs. 352.91 Cr. in FY11, a growth of 36% Y-o-Y. While the top-line grew by 61% Y-o-Y and 39% M-o-M to Rs. 107.7 Cr. in Q4FY11.

The Auto Industry has grown by 25% in FY10 and 27% in FY11. On the whole 17.3 million vehicles where sold in India in FY11 over 13.6 million vehicles in FY10.

The financial performance of the company has improved considerably. The top-line increased by 36% to Rs. 352.91 Cr. while the profits of the company grew by 134% to Rs. 33.5 Cr

Sun Pharma Adv – Stocks To Watch

admin — Fri, 15 Jul 2011 13:06:02 +0000

Sun Pharma Adv

BSE ID : 532872 NSE ID : SPARC

Target of Rs 120

The company formed in 2007, when India’s leading speciality pharma company, Sun Pharmaceutical Industries Ltd, separated out its active projects in drug discovery and innovation into a new company. This was done in order to bring in the right focus and opportunity for growth for these projects that address international markets. A team of scientists has been working since the year 2000 on these projects which are now at different stages of preclinical and clinical development.

The company has launched two products in India namely Latanoprost BAK free ophthalmic solution and Timolol once-daily. Timolol is also targeted for other emerging markets. The DPI launch has been delayed from 3Q FY11 to 2Q FY12 on the back of the product complexity which resulted in more time to resolve some technical issues. SPARC after completing PII trials of PICN (Paclitaxel Injection Concentrate for Nanodispersion) plans to launch it in 2013. Launch in other emerging markets will take time as it may require additional studies. In US, SPARC is currently developing higher strength doses of Keppra-XR and plans to file in 3Q FY12 (approval expected in 10-months time). The other drug Baclofen PIII trial delayed due to FDA negotiations. The earliest product launch in the regulated market could be of Latanoprost BAK-free as the company has initiated two PIII studies in 2Q FY11 which are expected to be completed by 3Q FY12.