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Bosch – stock investment

admin — Sun, 29 Jan 2012 06:36:01 +0000

Bosch: Often referred to as pension stock, Bosch is part of Bosch GmbH and is present in India for more than 80 years. Consistent growth in turnover strikes at first glance. It has reported increase in turnover year on year since calendar year 2000. The company commands market share of around 65% in the diesel systems segment. Besides, Bosch has several other divisions like gasoline systems, packaging machinery, starters and generators security technology, automotive after-market and power tools.

Going forward, Bosch would be investing Rs 2200 crore in 2012 and 2013 for expanding its capacities.. The Bosch Group in India added 4,000 more associates in 2011 taking its workforce to 25,000 and would be adding another 7,000 in the next two years. Currently, the company is building a new electrical drives plant in Chennai, which will begin operations in 2012. Expansion plans are also underway at the Nashik, Jaipur and Ahmedabad facilities.

Goodyear India – stock investment

admin — Sun, 29 Jan 2012 06:22:07 +0000

Goodyear India, in which US based Goodyear Tire & Rubber Company holds 74% equity stake, is debt-free and had cash of Rs 217.9 crore on its balance sheet end calendar year 20120, which is equal to 31% of its market value. Its parent is in the tyre business for over 100 years.

In the domestic market, the company has several industry first to its credit like rolling out the country’s largest tyre and launching tubeless tyres.

A price benchmark is available for Goodyear India. In June 2010, the promoters made an attempt to delist the company. However, the voluntary delisting bid failed as the number of shares tendered were lower compared with the minimum number of shares required, as per the Securities Exchange Broad of India’s delisting regulation. The indicative price for delisting was set at Rs 245 but Rs 340 emerged as the discovered price through reverse book building. The company is currently trading at Rs 301.

FAG Bearings India – stock investment

admin — Sun, 29 Jan 2012 06:16:56 +0000

Part of the Schaeffler Group, Germany, which hold 51% equity stake, FAG Bearings India is the second largest player in the domestic bearing market. It is a major original equipment manufacturer supplier of bearings to the automotive, mechanical and electrical engineering industries. The company has reported increase in sales consistently in the last five years and crossed the milestone of Rs 1000 crore in sales in calendar year 2010. FAG launched 94 new products in 2010. Of these, 24 are specifically for the export market.
A debt-free company, with cash of Rs 288 crore end December 2010, FAG reported an impressive 22.3% increase in net sales and 60% in profit in the TIM ended 30 September 2011. No surprise the stock managed to withstand the bear assault in 2011 and reported a gain of 26% in the last one year.

Clariant Chemicals (India) – stock investment

admin — Sun, 29 Jan 2012 06:03:08 +0000

Clariant Chemicals (India): Part of Clariant, Switzerland, Clariant Chemicals (lndia)is the leader in fine and specialty chemicals. It reached a milestone by crossing Rs 1000-crore gross sales in 2010. A debt-free company, cash in hand was over Rs 200 crore end 2010, which is around 12% of its market capitalisation. In February 2011, it sold land and infrastructure at Balkum, Thane in Maharashtra, and booked windfall profit of Rs 240 crore in the first quartet ended 31 March 2011.

At the current market price of Rs 608, Clariant Chemicals’s dividend yield works out to 493%, which is one the highest among the chosen MNCs. In calendar year 2010, it paid dividend of Rs 30 pet share including interim dividend of Rs 10. Its liberal payout ratio stood at 83% of profit in 2010, 72% in 2009, 88% in 2008, and 98% in 2007.

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.

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.

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 BHEL’s average debt equity ratio of 0.01 over the past five years the rating assigned to the stock is 10.