tag:blogger.com,1999:blog-144103282024-03-07T01:31:41.511+05:30Indian Stocks"When one knows Thee, then alien there is none, no door is shut..
Oh, grant me my prayer that I may never loose touch of the One in the play of the many"What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.comBlogger277125tag:blogger.com,1999:blog-14410328.post-84114841401006226662019-06-21T10:55:00.001+05:302019-06-21T14:54:35.312+05:30Tilaknagar Industries: Market Leader in Brandy!!.. Kingfisher Loosing ground.??.We are all well aware than "Mansion House" Brandy is the most popular Liquor brand of Tilaknagar, we also know its a millionaire brand (sells more than a million cases every year) 84% of sales is Brandy for Tilaknagar, Volume wise 4.98 million cases of brandy was sold by tilaknagar in year ending March 2018<script type="text/javascript">
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I would assume atleast 2.5 - 3 milllion cases would be just Mansion house brandy.. and rest would be Courrier Napoleon (semi-premium range)</div>
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the question is what are the ground realities... actual data from the ground level .. Liquor being a controlled product and heavily taxed and a source of revenue.. govt data is available.. though not easy to mine or to extract..</div>
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I have got data for Kerala State and presenting raw data here for every one.</div>
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- Every month what ever liquor is selling its replaced from warehouse.. so that each store has the liquor which is selling (in demand) and not something the public does not want..</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2ZgPwiZuT6oswrglDHK5JnFMqiVzQnlBrev02Nwjs8Gx_0pGXtd4tw3kJYANavsq6yQFPvm0DmBSqBPDBM8342BQcrKXecJ-RGhEnK09kAs0nyFXtbMeTt9Va_2JVxiuIbf-29g/s1600/Mansion-house-kerala-replenish.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="680" data-original-width="767" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2ZgPwiZuT6oswrglDHK5JnFMqiVzQnlBrev02Nwjs8Gx_0pGXtd4tw3kJYANavsq6yQFPvm0DmBSqBPDBM8342BQcrKXecJ-RGhEnK09kAs0nyFXtbMeTt9Va_2JVxiuIbf-29g/s320/Mansion-house-kerala-replenish.jpg" width="320" /></a></div>
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As can be seen for location : "BLM Overbridge" most selling Brandy is Mansion House.</div>
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with 10.60% replacement market share</div>
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The other important thing worth mentioning is that this list did not contain.. Honey Bee Brandy or Mcdowell No1 Brandy..(largest selling brandy brands in India & the world) so either Mcdowell No1 & HoneyBee is being discontinued .. or the cheaper brands have to be pushed by the Supplier and demand is not generated!! (I'm guessing/speculating based on data available..) </div>
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Another important thing is Kingfisher brand of beers seems to be trailing to " British Empire Ultra Premium Beer" [SNJ Breweries Pvt limited] by huge margin..</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYg0tK3klWLEnsMw3eFraLG_JMISYjUrh-uOHq1fV_Jh3xjEcCwuVzdSNILb8fFVCDhq7-qoG54qK2DQjQyxGJKJ6Rsi0-6dVbc4iIUP_rTz9of_V2O308iiA2A_OYcmT1Ef8aTA/s1600/Kingfisher-demand.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="641" data-original-width="754" height="272" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgYg0tK3klWLEnsMw3eFraLG_JMISYjUrh-uOHq1fV_Jh3xjEcCwuVzdSNILb8fFVCDhq7-qoG54qK2DQjQyxGJKJ6Rsi0-6dVbc4iIUP_rTz9of_V2O308iiA2A_OYcmT1Ef8aTA/s320/Kingfisher-demand.jpg" width="320" /></a></div>
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this is not good news for United Breweries shareholders.. I hope they have their ears on the ground to face the challenge .. and nip it at the bud!!..</div>
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Raw data for "BLM Over bridge" location in kerala has been provided for all to evaluate and make an informed decision.. (its a bit too long so please right click and open on a new tab to see it in detail)</div>
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you can see data for whiskey - vodka & rum also for "BLM Overbridge" location to get an idea about what's selling in Kerala in March/April 2019! </div>
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PN: "BLM Over bridge" is just one sample location and not necessarily a good sample.. so please do your own deep dive to come to any conclusion... this is my own study for my own personal review.. not a comprehensive industry wide database.. </div>
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<span style="color: red;"><b>Conclusion: Tilaknagar has a MCap of just: 188cr ..& sales of 1800cr (approximately for march 2019 guess-estimate) and its the market leader based on ground realities (data from kerala) .. Its definitely very cheap for a market leader in Premium brandy space.. and over the next 10 yrs we can easily expect Tilaknagar to be a multibagger (once it gets its debt fixed..) Tilaknagar is an 86yrs old company so Tilaknagar Industries has seen its fair share of up & down days & should be still around for decades to come.. Good time to add/invest when stk is at rock bottom..</b></span></div>
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<span style="color: red;"><b>United Breweries seems to have a new challenger[SNJ Breweries Pvt Limited] and needs to pull up its socks ..else it could very well see the floor disappear from under its feet..</b></span></div>
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<b>PN: I am not a sebi registered investment advisor, this is just data based on my person research and its not comprehensive... Please do your own research and consult a registered investment adviser before investing.. I do have investments in Tilaknagar Industries.</b></div>
What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com21tag:blogger.com,1999:blog-14410328.post-83185323570460825172019-05-14T02:33:00.001+05:302019-05-17T16:17:15.880+05:30Tilaknagar: Liquor consumption in Kerala<div>
Tilaknagar Industries</div>
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CMP: 13.50, Market Cap:172.4cr</div>
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Kerala is the largest liquor consuming state in India .. and fortunately data is available for Kerala at <script type="text/javascript">
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<a href="http://ksbc.kerala.gov.in/">http://ksbc.kerala.gov.in/</a> website.</div>
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The interesting fact is "Brandy" is the most consumed Indian Made Foreign Liquor consumed in Kerala .. RUM is second and then down the line is whiskey..</div>
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Top Selling Brands in Kerala:(April 2019)</div>
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No:1) No1 Mcdowell Brandy : 13.19% market share</div>
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No:2) No1 HoneyBee Brandy : 7.40% market share</div>
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No:3)OLD Port Deluxe RUM : 6.29% market share</div>
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No:4)JAWAN SPECIAL XXX RUM: 5.98% market share</div>
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No:5)CLASSIC GRANDE MATURED XXX RUM: 3.49% market share</div>
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No:6)MCDOWELL NO1 CELEBRATION RUM: 2.78% market share</div>
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No:7)COURRIER NAPOLEON GOLD BRANDY: 2.75% market share (<b><span style="color: red;">Tilaknagar Brand</span></b>)</div>
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No:8)MANSION HOUSE FRENCH BRANDY: 2.52% market share (<b><span style="color: red;">Tilaknagar Brand</span></b>)</div>
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No:9)FARMERS XXX RUM: 2.38% market share</div>
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No:10) WHITE MISCHIEF CLASSIC BRANDY: 2.26% market share</div>
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no doubt the market leader is United spirits with 3 brands in top 10 and with 23%+ market share its a commanding lead over everyone else... but we are looking at tilaknagar and where does tilaknagar stand in this "rat race"</div>
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Lets add the <b>price/"Landed cost"</b> of 750 ml case for above mentioned top 10 selling IMFL in kerala state</div>
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No:1) No1 Mcdowell Brandy : 13.19%, Landed cost: <b>631.06</b></div>
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No:2) No1 HoneyBee Brandy : 7.40%, Landed cost: <b>631.06</b></div>
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No:3)OLD Port Deluxe RUM : 6.29%, Landed cost: <b>514.81</b></div>
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No:4)JAWAN SPECIAL XXX RUM: 5.98%, Landed cost: <b>426.55</b></div>
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No:5)CLASSIC GRANDE MATURED XXX RUM: 3.49%, Landed cost: <b>572.45</b></div>
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No:6)MCDOWELL NO1 CELEBRATION RUM: 2.78%, Landed cost: <b>585.07</b></div>
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No:7)COURRIER NAPOLEON GOLD BRANDY: 2.75%, Landed cost: <b>613.33</b> (<b><span style="color: red;">Tilaknagar Brand</span></b>)</div>
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No:8)MANSION HOUSE FRENCH BRANDY: 2.52%, Landed cost: <b>928.32</b> (<b><span style="color: red;">Tilaknagar Brand</span></b>)</div>
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No:9)FARMERS XXX RUM: 2.38%, Landed cost: <b>427.49</b></div>
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No:10) WHITE MISCHIEF CLASSIC BRANDY: 2.26%, Landed cost: <b>651.15</b></div>
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So as everyone can see.. at the premium end of the market... the top selling IMFL in kerala is "Mansion House Brandy" priced @ 928.32 (landed cost) </div>
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I did some more digging into the top 20 brands in kerala and other top 20 brands with price above 900/- are</div>
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Ranked 13 MCDOWELL VSOP BRANDY: 1.65% market share, Landed Cost: <b>921.15</b></div>
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so in the top 20 selling brands on IMFL in Kerala the largest liquor consuming state in India.. </div>
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Tilaknagar Mansion House brandy is most selling premium IMFL with 2.52% market share</div>
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2nd spot goes to MCDOWELL VSOP BRANDY with 1.65% market share..</div>
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Tilaknagar "COURRIER NAPOLEON GOLD BRANDY" is the brand that Tilaknagar is planning for competing for market share with United Spirits brands. Honey Bee & MCD No1 Brandy. priced close to Honey Bee & Mcdowell No 1 Brandy..</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioUJiHnjqp08-JEakZB2GOhyphenhyphenYY80VYhYmfBA_WBfI63DXVsAZH_Czci4uCsptPIRFm2rmcpCLdyAeRS_jePKquWl5ehCUBTA7gg5It5fsSiA-ahKADJ9q4SSsMmDpckVAToVUkYw/s1600/tilaknagar-prices-kerala.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1432" data-original-width="1600" height="286" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioUJiHnjqp08-JEakZB2GOhyphenhyphenYY80VYhYmfBA_WBfI63DXVsAZH_Czci4uCsptPIRFm2rmcpCLdyAeRS_jePKquWl5ehCUBTA7gg5It5fsSiA-ahKADJ9q4SSsMmDpckVAToVUkYw/s320/tilaknagar-prices-kerala.jpg" width="320" /></a></div>
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Landed Cost of Tilaknagar Brands & United Spirits Brands (above)</div>
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top selling brands in kerala for the month of April 2019(below)</div>
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recently govt has mandated that companies need to report their borrowing levels to the stock exchanges.. and Tilaknagar Industries has reported a borrowing of 280cr .. in BSE website..</div>
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United spirits reported 750cr of borrowing</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZpn9VZfmhW6VKd9WhUiAlnUQ8oWfj5Pad5p30XlPnDjpkmRyv6s78Uvr_HOKDWmLdP31Sb-WO1R0LX4hONSBNL9RrkFs6MPfOjQYO7ewEirEO-p88OBG9wePTQTftLJrIJyJ2NA/s1600/unitedSpirits-debt.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="725" data-original-width="643" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZpn9VZfmhW6VKd9WhUiAlnUQ8oWfj5Pad5p30XlPnDjpkmRyv6s78Uvr_HOKDWmLdP31Sb-WO1R0LX4hONSBNL9RrkFs6MPfOjQYO7ewEirEO-p88OBG9wePTQTftLJrIJyJ2NA/s320/unitedSpirits-debt.png" width="283" /></a></div>
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<b><span style="color: red;">Conclusion: Tilaknagar is going full steam ahead with cleaning its books.. and with premiumisation strategy.. </span></b><b><span style="color: red;">@175cr market cap with 280cr of debt as of March 2019... company seems to have turned the tide.. the books will start looking a lot more presentable next year... expect the stock price to start ticking up.. as market takes notice of the change in fundamentals.. </span></b></div>
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<b><span style="color: red;">PN: this is not a recommendation service.. its my thought process or brain dump..for my own tracking purposes.. please consult a SEBI registered investment advisor before investing...</span></b></div>
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What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com16tag:blogger.com,1999:blog-14410328.post-88334042030019811042018-08-22T01:38:00.000+05:302018-08-22T01:38:06.221+05:30Tilaknagar is being accumulated??Tilaknagar Industries<script type="text/javascript">
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CMP: 15.30 Market Cap: 191.14cr</div>
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Tilaknagar was discussed on December 04,2017<a href="http://whatsup-indianstockideas.blogspot.com/2017/12/tilaknagar-industries-picture-tau-abhi.html" target="_blank">(Link)</a> .. the logic was the stock had just turned bullish..stock price was: 21.55... 200Day EMA:14.45, 50 Day EMA:16.59 </div>
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So the golden cross was formed (50 Day EMA (16.59) crossing the 200 Day EMA (14.45) from low to high) ... since then tilaknagar stock has corrected to around 200 Day EMA .. but some interesting developments have happened.</div>
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New investors have accumulated the stock.</div>
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If you see latest june 2018 shareholding data..</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgIvZmxHdAepSwoTktlda-NQuD1jIBW1E141ApBgjG28o6UDoC25itDS4dUgZ-bdPHA9pb8goBnUDofxjuNuAE8yX7HDJKstCZDNud0O03QpVlZRo_D-bAB8ByTDHLUjOUgHZeLFg/s1600/tilaknagar-june2018-sh.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1013" data-original-width="818" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgIvZmxHdAepSwoTktlda-NQuD1jIBW1E141ApBgjG28o6UDoC25itDS4dUgZ-bdPHA9pb8goBnUDofxjuNuAE8yX7HDJKstCZDNud0O03QpVlZRo_D-bAB8ByTDHLUjOUgHZeLFg/s320/tilaknagar-june2018-sh.jpg" width="258" /></a></div>
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The largest public Shareholder in Tilaknagar on june 30,2018 is:</div>
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Aqua Proof Wall Plast Pvt Limited holding: 40,58,530 shares.</div>
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In March 30,2018 the largest shareholder in Tilaknagar was:</div>
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Aqua Proof Wall Plast Pvt Ltd. holding: 26,09,043 shares.</div>
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In Dec 30,2018 there was nobody from Public holding more than 1% shareholding.. which means at the max Aqua Proof Wall Plast Pvt Ltd was holding less than 12,47,5612 shares.</div>
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so in past 6 months (Jan 2018 to 30 june 2018) Aqua Proof Wall Plast Pvt Ltd has purchased: close to 30 lakh shares of Tilaknagar from the open market..</div>
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If we dig deeper.. we find that one of the directors of Aqua Proof Wall Plast is also a director in Anand Rathi Securities.</div>
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Also Anand Rathi Securities has given loan to tilaknagar promoters (loan against shares) shares pledged is: 5,00,00,000(5 cr shares) </div>
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In March 2018 results .. balance sheet statement show that tilaknagar has some 66-67cr in cash in hand...</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiAuy3e0Gsb7B3q86owAX0PcpSYc0qhyphenhyphentZe19gsd9jNaIPPy6IPVDbyHXe7lITLE4AkDnC0Ic2YGr99qq0YU9aTLZ-EsVUacM5ILgDgPZDWcMs9Q-pIBh_OdKxz7HzQbD9czd65Vw/s1600/March-2018-balancesheet.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1343" data-original-width="910" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiAuy3e0Gsb7B3q86owAX0PcpSYc0qhyphenhyphentZe19gsd9jNaIPPy6IPVDbyHXe7lITLE4AkDnC0Ic2YGr99qq0YU9aTLZ-EsVUacM5ILgDgPZDWcMs9Q-pIBh_OdKxz7HzQbD9czd65Vw/s320/March-2018-balancesheet.jpg" width="216" /></a></div>
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further digging shows that Tilaknagar of 15 May 2018 paid and closed(paid back all dues) .. a loan from Edelweiss Asset reconstruction company..worth 65 cr..</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgAq_HPy9nJ1KcobsiQ7HQMvQMIAbrSSeQvyiWsPF027UUtEH8yOOd6XYy_EjMimcTV74mfIu6OeK2EoZKsH1Tu4V7ciekTMaK8Q01NcfSgpc3B4T7roM8-owJydENJ3-K0P0ysPg/s1600/Loan-payment-may-2018.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1066" data-original-width="1049" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgAq_HPy9nJ1KcobsiQ7HQMvQMIAbrSSeQvyiWsPF027UUtEH8yOOd6XYy_EjMimcTV74mfIu6OeK2EoZKsH1Tu4V7ciekTMaK8Q01NcfSgpc3B4T7roM8-owJydENJ3-K0P0ysPg/s320/Loan-payment-may-2018.jpg" width="314" /></a></div>
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if we piece all the parts together.. </div>
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1. company has been reporting losses but on march 2018 balance sheet.. tilaknagar had some 66-67cr in cash.. </div>
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2. On May 15,2018 tilaknagar pays off some 65cr of loan(closes the loan: Date of Satisfaction) </div>
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3. we see Aqua Proof Wall Plast aggressively buying into tilaknagar stock.. (40 lakh shares in 6 months..)</div>
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4. we also see tilaknagar issuing stock options to top management @ rs13/- per share..</div>
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If we take all these pieces together ... I'm certain.. Tilaknagar has turned the tide... and is on the way to recovery. very rapid purchase of equity by Aqua Proof wall Plast indicates we are about to see some positive announcement which will change the view of the market toward tilaknagar..</div>
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I would say its time to back up the truck and load up on tilaknagar.. </div>
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<b><span style="color: red;">PN: I am not providing any investment advice.. its a blog of my thought process ... for me to review based on which i take my investment decision.. Please do your own deep dive and consult a SEBI registered investment consultant before investing..</span></b></div>
What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com28tag:blogger.com,1999:blog-14410328.post-51526684323048954682018-06-24T03:26:00.001+05:302018-06-24T03:26:26.736+05:30Ester Industries: Value Added ProductsEster Industries<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhG_zea8-mq2fgZzZuKXWSjUuq6urQp-VRxXiU9gwYqdydOuabbGkisek6T0mqUk-cryNKBMJTGcyW1MQOSBlk-koxLlAHcIp9wT-mIgg9bcmHhm1hEVLZInPKhim0qSQyTy6j98A/s1600/Ester-logo.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="61" data-original-width="128" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhG_zea8-mq2fgZzZuKXWSjUuq6urQp-VRxXiU9gwYqdydOuabbGkisek6T0mqUk-cryNKBMJTGcyW1MQOSBlk-koxLlAHcIp9wT-mIgg9bcmHhm1hEVLZInPKhim0qSQyTy6j98A/s1600/Ester-logo.png" /></a></div>
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CMP: 48.8</div>
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MCap: 406.96cr</div>
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Sales: 824.5cr</div>
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Net Profit: 5.29cr</div>
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<a href="http://www.esterindustries.com/">http://www.esterindustries.com</a></div>
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<b>Customer satisfaction through Innovation, Development and Partnership</b></div>
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Backed by 30 years of industry expertise, Ester manufactures Polyester Films, Specialty Polymers and Engineering Plastic compounds. Polyester Films find applications primarily in flexible packaging while Specialty Polymers find applications into niche areas including rigid packaging, textiles etc. The Engineering Plastics business processes various materials for industries like Automotive, Electrical & Electronics, Appliances and Telecom. We take pride in offering complete solutions to our customers even for their most demanding needs. We also partner with our customers to derive a sustainable competitive advantage through customized development projects.</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgb1Oc4ZpWIve8qQR_aoky5TVBIIQgANvXxwC0rLZ6K4b3G0ncI6c2jWnnfm8fzRxiZ59NYV5wOxkJG0M3sXJoTpng_PeD_hPasyhfqvtT_vlJ37HhVPFgwBzDLD_VydsmbGYtk-w/s1600/Ester-chart-1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="637" data-original-width="940" height="270" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgb1Oc4ZpWIve8qQR_aoky5TVBIIQgANvXxwC0rLZ6K4b3G0ncI6c2jWnnfm8fzRxiZ59NYV5wOxkJG0M3sXJoTpng_PeD_hPasyhfqvtT_vlJ37HhVPFgwBzDLD_VydsmbGYtk-w/s400/Ester-chart-1.jpg" width="400" /></a></div>
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Ester Industries Stock has corrected from a high of 78 to 48.8 a 37% drop from its 52 week high..</div>
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and quoting close to its 5 yrs (999 days) EMA (exponential moving average) of 42.36.</div>
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As you can see the stock bounced back from its 999day EMA levels before..</div>
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The company has a pretty good cash flow from operations .. 5 yrs Avg Cash Flow from Operations is: 53.74cr (5 yrs Average!! Wow) while 5 yrs avg Net Profit is 0.33cr.. (profits seem suppressed)</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKvpsujr8z9BqoQV2CYMmJcWfR-58jHdKP93fLyR0TgFQk2Uhx4NoCcvX37-j7K79cmDGGIWxOv2-l7j4YZDXEfMGAn1XV7EKvOMeII16bp2XFmo6FxLdjDdyLuyBr458eH1Td4g/s1600/Ester-cashflow1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="328" data-original-width="761" height="171" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhKvpsujr8z9BqoQV2CYMmJcWfR-58jHdKP93fLyR0TgFQk2Uhx4NoCcvX37-j7K79cmDGGIWxOv2-l7j4YZDXEfMGAn1XV7EKvOMeII16bp2XFmo6FxLdjDdyLuyBr458eH1Td4g/s400/Ester-cashflow1.jpg" width="400" /></a></div>
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If we look at the Income (Profit Loss ) statement the company has been reporting low profits consistently..</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgcDjzCrh9t1dVtCW0hKwPyO9aoXwhMJXPILFswUPLBW8ZPA-Ls2BzFDWNruCuNOK8pYZiTBNuOKDPgqHV9rcyTNyJuOmIuxyNS3jLlP58ekKV4fpXff5kqJBAJ8oUezSLadTJF7Q/s1600/Income+Statement.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="783" data-original-width="784" height="398" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgcDjzCrh9t1dVtCW0hKwPyO9aoXwhMJXPILFswUPLBW8ZPA-Ls2BzFDWNruCuNOK8pYZiTBNuOKDPgqHV9rcyTNyJuOmIuxyNS3jLlP58ekKV4fpXff5kqJBAJ8oUezSLadTJF7Q/s400/Income+Statement.jpg" width="400" /></a></div>
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Will the low profit margin change in the future??.. I think so.</div>
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1. Company in the past few yrs has been trying to increase its Value added business where margins are better.</div>
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2. Company signed an agreement with Dupont in past few yrs to do joint development of products using Dupont ingredients.</div>
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3. Based on this agreement and Esters R&D ...Ester has developed number of new products & has filed Product & Process Patents (which have been accepted in US)</div>
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4. Shaw Industries Group Inc USA which is a Berkshire Hathaway (Warren Buffett) company and largest carpet manufacturer in the world. Shaw Industries has approved "Stain Resistant Master Batch MB-03" This will impart permanent Stain Resistance to nylon carpets this is agreement for 90cr worth of sales (2500 tonnes) every year..</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-Dk1uPz27FUK7Ila0G4jqwddFSXB077u8xOG4ChpfelaqULKUQeM_dL8vIoBsnL1t_ZD8iHd1pscbP2LvHr7hP0TkXvjW0JPVhopGs7-Xbli8yGdDSj3AR067VQ-hy1xIKOdrMA/s1600/Ester-Shaw.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1600" data-original-width="677" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-Dk1uPz27FUK7Ila0G4jqwddFSXB077u8xOG4ChpfelaqULKUQeM_dL8vIoBsnL1t_ZD8iHd1pscbP2LvHr7hP0TkXvjW0JPVhopGs7-Xbli8yGdDSj3AR067VQ-hy1xIKOdrMA/s640/Ester-Shaw.jpg" width="268" /></a></div>
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This Agreement is for sales of about 90cr.. which is like 10% of its annual sales of 800-900cr..</div>
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But I believe every carpet manufacturer would like to sell "Permanent stain resistant carpets" so I'm sure other companies(competitors) will also follow suite and purchase from Ester Industries. Stain Resistant carpets could be the norm .. rather than an exclusion... as carpets are long term purchase item and every manufacturer would prefer stain resistant carpets..</div>
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If you look at the March quarterly & year end data.. Q4 Quarterly Profits are 5.42cr and Full year end Net Profit is: 5.58cr... Considering 5 yrs avg Operating cash flow of 50cr.. I would say reporting 25cr net Profit should not be that difficult.. with the new patents and related products sales .. I expect significant Margin improvement .. we can expect over the next few yrs that Ester can report 45-55cr net profit.. which is a 10x increase in Net profit..</div>
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there are already 4 products which are patent protected which have been accepted by customers..</div>
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with agreement with Dupont.. you can directly get acceptability and open number of doors to new clients..</div>
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There are some things of concern such as almost 15% shares in public domain are held by one company Vettle International limited.. and these shares were issued @ rs 10 per share.. Vettle International initially had some 20% stake and has been selling some stock which could put downward pressure on stock price</div>
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Ii would say issuing 20% stake to an unknown company is not possible by promoters.. so Vettle is part of public holding .. but definitely known to the promoters indirectly.</div>
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<span style="color: red;">Conclusion: Ester produces value added products using commodity petroleum products.. with agreement with Dupont and getting patent protected products in the market is a big leg up and should improve margins. Company has good cash flows and can easily report 10x increase in profit in the near future.. Stock is attractively priced and available close to its 5 yra EMA (42.36)</span></div>
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I<a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/13bb5105-0855-406b-b11d-8097995b75ca.pdf" target="_blank">nvestor Presentation Q4-2018</a></div>
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What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com12tag:blogger.com,1999:blog-14410328.post-82645020772196040072018-04-15T23:12:00.000+05:302018-04-15T23:12:17.319+05:30Birla Precision Technologies: Comeback kid!!<div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRYoOmUqG7ZiKGCROiGORUogiBu6e_C5YfebRO72nWh-2_GHcVLfcUaQLQyJWW2g0CV7AqFgWkW9S6hWO-AFhBamN8qroAMa90H4uY448XnBMRKStO5b7Wp-gAbfDPzSpE0RIBzg/s1600/bpt_rev_r1_c1.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="115" data-original-width="900" height="50" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgRYoOmUqG7ZiKGCROiGORUogiBu6e_C5YfebRO72nWh-2_GHcVLfcUaQLQyJWW2g0CV7AqFgWkW9S6hWO-AFhBamN8qroAMa90H4uY448XnBMRKStO5b7Wp-gAbfDPzSpE0RIBzg/s400/bpt_rev_r1_c1.jpg" width="400" /></a></div>
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Birla Precision Technologies<div>
CMP: 8.17</div>
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Market Cap: 43.02Cr</div>
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Sales: 155.37Cr (March 2017)</div>
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<a href="http://www.birlaprecision.in/company-profile.html">http://www.birlaprecision.in/company-profile.html</a></div>
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Birla Precision Technologies Ltd (BPT) the erstwhile Birla Kennametal Ltd was established in 1986, as a joint venture company between YBG (Yash Birla Group) and Kennametal Inc, USA In July 2007. YBG acquired the stake of Kennametal in the JV consequent upon which Birla Kennametal was renamed as “Birla Precision Technologies” (BPT). BPT continues to be a primary vendor of Kennametal worldwide –USA, Germany and APAC supplying rotating tool holders in AT3 class. Besides, BPT also exports in a large way to other major customers in the USA, Europe and in recent times to the Far East including China</div>
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Leveraging its core competency of machining, forward integration into machining of precision components and castings was a natural progression and catering to global giants like Cummins, Knorr-Bremse, Husco International .</div>
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Yash Birla Group sold its Dagger Frost cutting tool division to Samvardhana Motherson Group (SMG) in 2009 .. though the remains of the cutting tool business with Yash Birla Group is a division of Birla Precision called "Indian Tools Manufacturers" <a href="https://www.indiantool.com/">https://www.indiantool.com/</a></div>
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The other division is: Birla Kennametal division which makes rotating tool holders AT3 Class.. Here Kennametal shareholding has been bought by Yash birla Group and name of the company was changed from Birla Kennametal to Birla Precision Tools. <a href="http://www.birlaprecision.in/index.html">http://www.birlaprecision.in/index.html</a></div>
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The third division is "machine casting division" which makes Automotive components and exports it to automotive customers like Cummins and Honeywell.. this division was done in collaboration with "Perucchini of italy"</div>
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Birla Precision had debt restructuring and as part of it all companies related to automotive tools have been merged into Birla Precision as separate divisions mentioned above.. (consolidation of business) </div>
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Now the promoters have recently (April 13,2018) passed a resolution for preferential allotment of shares to promoter company in Birla Precision. </div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJsPhMXLKERrt4NV3qXRsWI0F2jClHmkC6gkyNoWPMgAsoOSbqKyCGsNraHqQeQnzohQ-RZ0D-x-om7yDw2Rhyl3yG_qLMN6Ea0MnXo4e5JTeNEXICJh1eYNNTR1RceCAZ498P9g/s1600/birla-precision-allotment.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="701" data-original-width="792" height="283" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJsPhMXLKERrt4NV3qXRsWI0F2jClHmkC6gkyNoWPMgAsoOSbqKyCGsNraHqQeQnzohQ-RZ0D-x-om7yDw2Rhyl3yG_qLMN6Ea0MnXo4e5JTeNEXICJh1eYNNTR1RceCAZ498P9g/s320/birla-precision-allotment.png" width="320" /></a></div>
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The company shares are also at rock bottom prices and turned bullish (golden Cross)</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpQzmB8o_xtiDxjrleC2VROvNcsdmhmLSEF97mWg7U7z-QSrqne1sDkxDdraqAB_Y8JWXDBe7Pknxy-7LxwuXUZezULu02XIylepY_0ir-HPg3zUaxHbxti8NLrKAcXRSEeFAoVw/s1600/birla-Precision-Golden-Cross.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="547" data-original-width="883" height="198" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhpQzmB8o_xtiDxjrleC2VROvNcsdmhmLSEF97mWg7U7z-QSrqne1sDkxDdraqAB_Y8JWXDBe7Pknxy-7LxwuXUZezULu02XIylepY_0ir-HPg3zUaxHbxti8NLrKAcXRSEeFAoVw/s320/birla-Precision-Golden-Cross.png" width="320" /></a></div>
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<b><span style="color: red;">Conclusion: Book value is 18, cmp is: 8.17 and has recently shown some movement..</span></b></div>
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<b><span style="color: red;">Considering the consolidation of all automotive and tools related business with Birla Precision and the subsequent preferential allotment to promoters.. Birla Precision looks like a long term bet on the Yash Birla group turning the company profitable.. Birla Precision has all the right ingredients just needs to think big.. and work towards it.. Invest is my view..</span></b></div>
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<b><span style="color: red;"><br /></span></b></div>
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<b>PN: this is not an investment advice.. it is my though process and a timeline for my point of view.. Pls consult a SEBI registered advisor.. and do your own deep dive..<br /></b></div>
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<b><span style="color: red;">=happy investing</span></b></div>
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<b><span style="color: red;">whatsup-indianstockideas.blogspot.com</span></b></div>
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What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com11tag:blogger.com,1999:blog-14410328.post-85404841133014599842018-04-12T08:04:00.000+05:302018-04-12T08:04:12.882+05:30Manugraph: Bullish undertone..Manugraph<script type="text/javascript">
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CMP: 47.5 Mcap:144.47cr..</div>
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Was just looking at Manugraph.. </div>
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Feb 7,2018 outcome of Board meeting states:</div>
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Board approves proposal to merge 100% subsidiaries and group companies with Manugraph..</div>
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WOW!!! Thats BIG Really BIG News!!</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZPP3cb4t_yuNAfW7x9_cD_HmBiVhmA0RumKfXJaasi05szBz_vygBRyyBSbW9ykn3-VjgbBD3hIm43ZRMg5250kj-kS3eyPNjK-FLkerbLsvFeCyOb_YIaqKRN9bagMNGM0nKDQ/s1600/merger-manugraph.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="755" data-original-width="649" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZPP3cb4t_yuNAfW7x9_cD_HmBiVhmA0RumKfXJaasi05szBz_vygBRyyBSbW9ykn3-VjgbBD3hIm43ZRMg5250kj-kS3eyPNjK-FLkerbLsvFeCyOb_YIaqKRN9bagMNGM0nKDQ/s400/merger-manugraph.png" width="343" /></a></div>
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now if I look at companies with similar addresses as manugraph</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhkFHxhtCa9ah7TSn7IrDZ8MI2dBeYUW95p4rw14Hs8yuzWFXDdtKswDZsuM25wWaa5MDG-og89tD6xpQk6s_0adcXKS8N7zi1vEq-VppXIrZm8cfg6ecSz2OLnRqkqSix-tdTnEw/s1600/promoter-companies.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="642" data-original-width="981" height="209" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhkFHxhtCa9ah7TSn7IrDZ8MI2dBeYUW95p4rw14Hs8yuzWFXDdtKswDZsuM25wWaa5MDG-og89tD6xpQk6s_0adcXKS8N7zi1vEq-VppXIrZm8cfg6ecSz2OLnRqkqSix-tdTnEw/s320/promoter-companies.png" width="320" /></a></div>
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it states there are 2095 companies with similar addresses.. I checked a few... not all 2095 companies have same promoters as manugraph..(the one marked is not a promoter company) but to say the list above is the complete list of companies owned by promoters would also be wrong..</div>
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So all said and done.. the statement that promoters are going to merge group companies into manugraph.. means we are going to see value unlocking.. </div>
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predicting when that will happen .. would be speculating.. </div>
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No of shareholders:</div>
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Dec 2017: 11,221 </div>
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Dec 2016: 11,942</div>
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Dec 2015: 12,248</div>
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Dec 2014: 11,873</div>
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Dec 2013: 12,404</div>
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lowest no of shareholders in past 5 yrs!!</div>
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Lets close by saying this is an interesting development to be kept in mind.. with bullish undertones..</div>
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=happy investing</div>
<div>
whatsup-indianstockideas.blogspot.com</div>
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What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com26tag:blogger.com,1999:blog-14410328.post-33894469818074471602018-04-10T19:08:00.000+05:302018-04-11T14:42:15.491+05:30Eastern Silk: Discounted stock.. Exporter of Silk <div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1psJSquPahLyAZogN5aJhlBzzXbOQtK9csbWhnBye0gX6ZYZZjiQg5rfY2zaHv-j3dhP9dor8IdXMzrDqQ8vfe_-7YKubqQKRxHj_tcjumiIBNiGbh73ucSudCzrsgsKmFSe3gA/s1600/eastern-silk-logo.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="140" data-original-width="400" height="112" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj1psJSquPahLyAZogN5aJhlBzzXbOQtK9csbWhnBye0gX6ZYZZjiQg5rfY2zaHv-j3dhP9dor8IdXMzrDqQ8vfe_-7YKubqQKRxHj_tcjumiIBNiGbh73ucSudCzrsgsKmFSe3gA/s320/eastern-silk-logo.png" width="320" /></a></div>
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Eastern Silk Industries<script type="text/javascript">
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CMP:3.40</div>
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MCap: 27.08cr</div>
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March 2017: Sales:63.42cr, Net Profit: 45.06Cr</div>
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<a href="http://www.easternsilk.com/">http://www.easternsilk.com/</a></div>
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ESIL a Kolkata based company incorporated in April 9, 1946 before Independence and it got its current name in 1975. The chairman is Mr. Shyam Sunder Shah. The company is engaged in various multifaceted activities like manufacture of silk yarn, fabrics and made ups, home furnishings, fashion fabrics, double width fabric, scarves, laces, melts and embroidered fabrics.</div>
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The company has been recognized as a Golden Star Export House by the Government of India. Sales are mainly from export markets. US and Europe account for about two – third of the company’s exports. Other export destinations comprise Australia, Middle East, Canada, Japan, New Zealand and Scandinavian & EFFTA countries. Its equity shares are traded on the Bombay Stock Exchange and National Stock Exchange.</div>
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ESIL is one of the largest high – end fabric manufactures in the World. Facilities at ESIL’s factory and design center are constantly upgraded as new technology is developed, to keep it on the cutting edge of industry. A wealth of technical and designing expertise accumulated over the years is put to work in developing new designs/blends.</div>
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The engineers, technicians and Supervisors in the production units are experienced and well qualified. The production is done round the clock. The whole production units are humidity and temperature controlled. The highly automated production facilities and through control systems are both highly efficient and environmentally friendly.</div>
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Manufacturing Facility</div>
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ESIL is a composite unit having the entire operations from softening, widening, doubling, twisting, dyeing, weaving and embroidery to finishing under one roof. Sophisticated processes from design to weaving are performed by the latest computerized systems,. The result is a co oriented and continuous operation that provides maximum efficiency and productivity. These steps have boosted ESIL’s reputation as a producer that can respond to customer demands for unique and sophisticated products.</div>
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Design Studio</div>
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ESIL has made an impact on global decorative fabrics industry with its world class designs and technology as well as diverse product lines, ranging from pure silk to blends from decorative furnishings to bridal wears. ESIL is constantly expanding its line up of value – added products and extending global distribution network to improve the quality of services it provides to their worldwide customers.</div>
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unit 1: </div>
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411, Telugarahalli Road, Anekal</div>
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Bangalore – 562 106</div>
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unit 2:</div>
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No.39, Kammasandra Agrahara,</div>
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Kasaba Hobli, Anekal,</div>
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Bangalore – 562 106</div>
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unit 3:</div>
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Plot No. 209, Phase 3</div>
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Bommasandra Village,</div>
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Attibele Hobli</div>
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Bangalore - 560099</div>
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unit 4:</div>
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Falta Special Economic Zone,</div>
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24 Paraganas (South)</div>
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West Bengal</div>
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The company was referred to BIFR (Board for Industrial & Financial Reconstruction) but in Dec 2016 the company was removed from under BIFR. The company has been paying back its dues to banks/financial instutions and ARC (Asset Reconstruction Companies) on a one time settlement basis.. all these One time settlement done with ARC & Lenders by the company has resulted in 119.96Cr Waivers (last year: 58.24Cr)</div>
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Another point worth mentioning is that the company has Preferential capital of 14Cr while Equity capital is: 15.79Cr.. Preferential capital is supposed to receive preferential dividend which the company has not distributed so most likely the equity shares will not receive any dividend in the near future (preferential capital has first right over dividend distribution..)</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhy_cJQ6u6z-3AephLkzm93U7BTf6RqZ0CKG_d94wE7tX63Pd5enaWg12gWjvXi7s-Nu2EZ8FyIagFZtenheVui_bAXC6VbYyYlAiyLs5OpQ5nsKF9N4z6OC8vjxHDKEOzxFYx5jw/s1600/eastern-chart.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="494" data-original-width="763" height="207" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhy_cJQ6u6z-3AephLkzm93U7BTf6RqZ0CKG_d94wE7tX63Pd5enaWg12gWjvXi7s-Nu2EZ8FyIagFZtenheVui_bAXC6VbYyYlAiyLs5OpQ5nsKF9N4z6OC8vjxHDKEOzxFYx5jw/s320/eastern-chart.png" width="320" /></a></div>
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Looking at the stock price the stock has been in dumps and it seems to be just turning around.. at current prices there is not much to loose..</div>
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if you look at the cash flows from operation</div>
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March 2017 Cash Flows from Operations before Exceptional Items: 29.19Cr</div>
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March 2016 Cash Flows from Operations before Exceptional Items: 30.38Cr</div>
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March 2015 Cash Flows from Operations before Exceptional Items: 7.92Cr</div>
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March 2014 Cash Flows from Operations before Exceptional Items: 47.74Cr</div>
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March 2013 Cash Flows from Operations before Exceptional Items: 6.41Cr</div>
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5 yrs avg cash flow from operations: 24.32Cr</div>
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Forgot to add export data.. (latest that I have .. pls dont ask how i got it.. :-))<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEihZioM0phr7t2ZGPRhhgLxuwT7iO0-6SW2Yv61g81NS3Jbckk6046uswmLw-MQVq4QuGErN7qNxEH4N-zeqHO6vyaJJs7EuED8H8Kc6ucXePgN0oseab86NtVoUS1xQdilgG2Llw/s1600/export-data.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="813" data-original-width="676" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEihZioM0phr7t2ZGPRhhgLxuwT7iO0-6SW2Yv61g81NS3Jbckk6046uswmLw-MQVq4QuGErN7qNxEH4N-zeqHO6vyaJJs7EuED8H8Kc6ucXePgN0oseab86NtVoUS1xQdilgG2Llw/s320/export-data.png" width="266" /></a></div>
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<span style="color: red;"><b>Conclusion: Eastern Silk is a well established company.. with regular exports from Bangalore and Calcutta.. Preferential equity means most likely no dividend payout by the company to equity shareholders .. The company as such seems to be well established and has positive cash flows.. With the change in govt attitude and banks lending to only solvent companies we can expect companies to start reporting profits... in year 2011 Eastern silk had sales of 600cr @ Mcap of just 27Cr when 5 yrs avg cash flow from operations is:24.32Cr I think its highly undervalued and we can expect market to give it a better capitalization in the future as the company fortunes turn for the better... Stock price seems to be just rising above its lows breaking above the 5 yrs EMA: 3.88.</b></span></div>
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<span style="color: red;"><b><br /></b></span></div>
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<span style="color: red;"><b>PN: this is a blog of my thought process.. pls do your own deep dive before investing.</b></span></div>
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What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com14tag:blogger.com,1999:blog-14410328.post-80828420488795182972018-03-13T18:28:00.002+05:302018-03-13T18:28:52.202+05:30IOL Chemicals & Pharmaceuticals Limited. (IOLCP)IOLCP<script type="text/javascript">
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CMP:76.30</div>
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MCap: 430.53Cr</div>
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IOLCP is part of the Trident Group of companies located in North India. Company was established in 1986, IOLCP is India's one of the leading generic pharmaceutical company, and is significant player in the Organic chemicals space. IOLCP has wide presence across various therapeutic categories like, Pain Management, Anti-diabetic, Anti hypertensive, Anti Convulsants, etc. </div>
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Our capabilities are nurtured by pursuing & implementing the high standards of excellence in our operations. By delivering consistent results & quality we have earned the admiration of customers and stakeholders. Innovative Strengths & Strong Growth have made us the market leaders. We have built up our expertise responding to diverse customer requirements Our products cater to the key industrial sectors of Pharmaceutical, Flexible Packaging, Paint & Lamination, Ink, Pesticides, etc. Efficient teamwork & strong associations have guided us to success. Accolades for our environmental policies have come from the highest levels of power. </div>
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Through an unwavering focus on Quality, Commitment & Delivery, we have charted our way to success in our operations and have won the admiration of our customers. Our success is built on the strong pillars of innovation, quality, & dedicated customer service. By incorporating these & other business strengths, we have boosted our capabilities to maintain the leading edge in the industry & earn the loyalty of our customers.</div>
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IOLCP is focused towards Quality, technology upgradation and expansion has provided an unwavering path of success. Every milestone achieved has left behind a remarkable footprint in the growth chart of the organization.</div>
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<ul>
<li>1986 Incorporation of IOL Chemical & Pharmaceuticals</li>
<li>1991 Commencement of Acetic Acid production</li>
<li>1996 Commencement of Ethyl Acetate Production</li>
<li>1999 Commencement of Acetic Anhydride Production</li>
<li>2000 Commissioned Ibuprofen Plant</li>
<li>2006 Commissioned Co-Generation Plant</li>
<li>2009 Commissioned Iso-Butyl-Benzene, Mono Chloro Acetic Acid & Acetyl Chloride Plant</li>
<li>2012 Commissioned Multipurpose Plant</li>
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API: Under API division in Pain Management and its derivative and salts, in Life Style Drugs Metformin Hyderochloride, Lamotrigine, Fenofibrate Clopidogrel Bi sulphate Ursodeoxycholic acid and many more are developed for commercial distribution across the globe. Company is focusing on generic product development and cost effective commercialization. Presently, 6 API's are already commercialized and 10 API's are in the advance stage of development</div>
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Speciality Chemicals: The Speciality Chemicals division produces Ethyl Acetate from organic alcohol for use in a variety of end products in markets, including flexible packaging, pharmaceuticals, textiles, food processing, pesticides and paint industries</div>
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The major product is Ibuprofen (commonly known as Brufen) IOLCP manufacturers inhouse chemicals required for ibuprofen ie. IsoButyl Benzene (IBB), Mono Chloro Acetic Acid (MCA) & Acetyl Chloride. </div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqTr3vMESSGMFkO5S4aNU2icOa0-am7tt0CQz64rUrRSqs2aj71gU2H816Di2Fx2ge4wWjWaaigLGHZHzLFVSuQYqWhoDRxlrAI0ZylDGEQTHeA4wDWFtydFg1e1Pe265OhzVt9g/s1600/Income-Balance-Cash.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1600" data-original-width="1253" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqTr3vMESSGMFkO5S4aNU2icOa0-am7tt0CQz64rUrRSqs2aj71gU2H816Di2Fx2ge4wWjWaaigLGHZHzLFVSuQYqWhoDRxlrAI0ZylDGEQTHeA4wDWFtydFg1e1Pe265OhzVt9g/s320/Income-Balance-Cash.png" width="250" /></a></div>
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Sales have steadily increased over the years.. IOLCP is all set to cross 1000Cr in sales this year.. with sales increasing 3x in past 10 yrs.. from 300Cr (2008) to now 1000+Cr in 2018..</div>
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Net Profits are also the highest in past 10 yrs.. though the margins are in low single digits.. (1-2%) </div>
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In general we should expect netprofit of 5-6% which on sales of 1000Cr should result in profits of around 50-60Cr</div>
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Cash flows from operations have also been fairly steady and increasing.</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOispFUBqGvDHYqViCxktZzMJsTuzm6wRK2IRwJIy1bPnXPfCq3FsLGidp0lNVSaf9JTCoI49_NBgfs5qZpBn8-MiDmHKN6WhYN7FzXkKSUtJVoMLo20ZVqMSA_m9Kc3aCbDA1kQ/s1600/iolcp-chart.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="546" data-original-width="765" height="228" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhOispFUBqGvDHYqViCxktZzMJsTuzm6wRK2IRwJIy1bPnXPfCq3FsLGidp0lNVSaf9JTCoI49_NBgfs5qZpBn8-MiDmHKN6WhYN7FzXkKSUtJVoMLo20ZVqMSA_m9Kc3aCbDA1kQ/s320/iolcp-chart.png" width="320" /></a></div>
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Stock seems to have bottomed out and ready to begin its upward journey.. </div>
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Dec 2015: Promoter stake: 39.92% No of shareholders: 9,193</div>
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Dec 2016: Promoter stake: 39.92% No of shareholders: 12,009</div>
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Dec 2017: Promoter stake: 41.19% No of shareholders: 21,923</div>
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There has been no new issue of shares but the promoter stake has increased.. also Trident is listed as a non promoter entity .. when clearly it should be in associates.. or promoter group..</div>
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Lot of corporate shareholders.. looks like promoters had stake through other companies and they are re-organizing their stake.. Stock price should have reflected the increase in sales and profits but that seems to be missing.. </div>
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<b><span style="color: red;">Conclusion: IOLCP is part of the trident group of companies.. which is a well established business house. IOLCP is concentrating in Ibuprofen market and has backward integrated and is increasing capacity..Promoters seem to be re-arranging their shareholding and this could be the reason the stock is quoting at attractive levels.. good time to accumulate for long term investors..</span></b></div>
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PN: this is for my blog and is a timeline for my own though process.. Please do your own deep dive before investing and take assistance of SEBI recognized advisor.. </div>
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<a href="https://www.bseindia.com/bseplus/AnnualReport/524164/5241640317.pdf" target="_blank">Annual Report 2017</a></div>
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<a href="https://www.bseindia.com/bseplus/AnnualReport/524164/5241640316.pdf" target="_blank">Annual Report 2016</a></div>
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<a href="https://www.bseindia.com/bseplus/AnnualReport/524164/5241640315.pdf" target="_blank">Annual Report 2015</a></div>
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<a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/44805b35-cc47-4170-834e-4b3c492a188c.pdf" target="_blank"><br /></a></div>
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<a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/44805b35-cc47-4170-834e-4b3c492a188c.pdf" target="_blank">Ibuprofen capacity increase as 7200Tonne capacity Fully utilized, Metformin production started</a></div>
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What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com7tag:blogger.com,1999:blog-14410328.post-81244087496685172072018-03-04T11:18:00.000+05:302018-03-04T11:18:10.338+05:30Williamson Magor: Hidden Hidden Hidden Gem..Williamson Magor:<script type="text/javascript">
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<div>
CMP:104.9</div>
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MCap: 113.78Cr<br />
Consolidated Sales March 2017: 64.37Cr<br />
Consolidated Net profit: -ve 13.99Cr<br />
<a href="http://wmtea.com/">http://wmtea.com/</a><br />
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The Company came into existence as a Corporate Entity on 10th March, 1949 when it was incorporated under the name 'MACNEILL & BARRY LIMITED' to do business inter alia as General Merchants, Agency Business and Manufacture of all kind of articles.<br />
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The Company became a Multidivisional Company with interests among other things in Manufacture of Tea, Jute, Engineering and Reprographic Items. The Company also had Agency and Trading Divisions.<br />
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The year 1975 was a land mark year for the Company when the then Williamson Magor & Co. Limited who were primarily engaged in the business of Growing and Manufacturing of Tea was amalgamated with the Company whereupon the name of the Company was changed to 'Macneill & Magor Limited'.<br />
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Williamson Magor & Co. Limited, had a long history in tea business dating back to the year 1868 and is considered to be one of the pioneers of tea business in India. As a result of the amalgamation, the Company became a major tea Company in the country while having various other business in its fold. Later, the Company changed its business strategy and decided to hive off all divisions other than tea to a few newly set up companies within the group.<br />
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In lieu of transfer of the said business the Company was allotted substantial number of shares by the Transferee Companies as consideration for the business so transferred. On completion of the process the Company again changed its name to Williamson Magor & Co. Limited in 1992 having principal business of growing and manufacture of tea and investments in group companies. Later the tea business was also hived off in favour of certain group companies as a result of which the Company became a pure Investment and Group Shareholding Company.<br />
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The Company accordingly made an application to the Reserve Bank of India for registering itself as a Non-Banking Financial Company (NBFC). The Company was granted the required licence to act as an NBFC by the Reserve Bank of India on 31st March, 2003 and since then the Company is in the said business with substantial investments in the group companies like McLeod Russel India Limited, Eveready Industries India Limited, Kilburn Engineering Limited, McNally Bharat Engineering Company Limited etc.,<br />
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The Company is listed on the Bombay Stock Exchange, The National Stock Exchange of India, The Calcutta Stock Exchange and the Gauhati Stock Exchange.<br />
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The Company owns a ten storey building at Four Mangoe Lane, Surendra Mohan Ghosh Sarani, Kolkata 700001 where the Registered Office of the Company is situated. The Company being the major Group Shareholding Company, the Group is popularly known as Williamson magor group.<br />
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<b>History of WM group:</b><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjroO2K6ocmVsqTb0BguOCZNym-33k7EfkTmaLb0GuPEjCHgw1QE56fZDAAlxioew4WKanbuxNmyk0FC_fZasgAFd4l3Ao9llZx11MONgoVd3z7SJOz-qif_OuHIiE10dBa4wqNGg/s1600/JHW.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="180" data-original-width="122" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjroO2K6ocmVsqTb0BguOCZNym-33k7EfkTmaLb0GuPEjCHgw1QE56fZDAAlxioew4WKanbuxNmyk0FC_fZasgAFd4l3Ao9llZx11MONgoVd3z7SJOz-qif_OuHIiE10dBa4wqNGg/s1600/JHW.jpg" /></a></div>
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The history of the Williamson Magor Group dates back to 1866. In that year, Captain J H Williamson, who was already involved in the management of tea estates in Assam, met R B Magor, an assistant with the Great Eastern Hotel in Calcutta. Their subsequent meetings and association led to the signing of the First Partnership Deed of the company in 1869. This was valid for a period of two years.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhN82pBX9W4YhTrKyzF54zw1HWLptOfn9rCZMAIKe3DYPJyV1_q1DHyhz5kJShEfDipgtEI_Z4dLhln_OvVPUjNX-9fDQI9rC7pA-QQ23MlFIrR4FxeK94vhi6o2dVlxlQKJrTuoQ/s1600/magor.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="200" data-original-width="130" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhN82pBX9W4YhTrKyzF54zw1HWLptOfn9rCZMAIKe3DYPJyV1_q1DHyhz5kJShEfDipgtEI_Z4dLhln_OvVPUjNX-9fDQI9rC7pA-QQ23MlFIrR4FxeK94vhi6o2dVlxlQKJrTuoQ/s1600/magor.jpg" /></a><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOS-VmNQIVMgp4vhtm6WvD1xor1Rb8AcB1T58QQHBJbB3y5u_gJD3iijdSjHyTJMqxVgX_0VeZp0pZLH5YBduQbUuSmeI-8CznbzSNdeZsBMsxjVj_pZHz9L5cpehP0v6ZroRCcQ/s1600/BMK.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="139" data-original-width="109" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiOS-VmNQIVMgp4vhtm6WvD1xor1Rb8AcB1T58QQHBJbB3y5u_gJD3iijdSjHyTJMqxVgX_0VeZp0pZLH5YBduQbUuSmeI-8CznbzSNdeZsBMsxjVj_pZHz9L5cpehP0v6ZroRCcQ/s1600/BMK.jpg" /></a>The agreement was renewed in 1871 and by 1875, its term was increased to five year periods. The company had its first office premises at 7 China Bazar Street. J H Williamson died in 1898. George Williamson, who had already withdrawn his capital from the business in 1879, died in 1903. In 1904, the Partnership Deed was renewed with R B Magor and J H Williamson's brother - in - law, Robert Lyell, enjoying an equal share. Williamson Magor & Co. worked closely with its London partnership, George Williamson & Co., the firm which a few years earlier had been started by James Williamson's brother, George.<br />
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The fortunes of the Williamson Magor Group grew along with the boom in the Indian tea industry. By the turn of the century, the company was handling the affairs of 44 tea estates. The Group also became involved in other businesses, including coal. Although the Indian tea industry continued to prosper during the First World War, there was an immediate post - war slump around 1920. The situation became worse with the Wall Street crash of 1929 and the ensuing depression. The production levels of tea far outstripped consumption. George Williamson, the London end of the partnership and Williamson Magor, the Indian end of the partnership, consolidated their position in the tea industry through the twenties and the thirties.<br />
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R B Magor died in 1933. His grandson, Richard Magor introduced B M Khaitan to the Group. Initially, Briju Khaitan supplied tea chests and fertilisers to the company and had become a friend of Pat Williamson, a grandson of J H Williamson. Williamson Magor & Co. was converted into a Limited Company in 1954. In 1961, a crisis loomed over the company when B Bajoria, an investor, acquired nearly 25% stake in the Bishnauth Tea Company, the flagship in the Williamson Magor Tea Estates. The Khaitan family provided the money to buy out Bajoria's stake. B M Khaitan was invited to join the board of the company and later, in the face of stiff resistance, went on to become Managing Director of the Group.<br />
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The Guthrie family was the majority shareholder in the McLeod Russel Group. In 1987, they decided to sell their tea plantations in India. B M Khaitan negotiated with them and bought out the estates. This meant the Williamson Group became the largest private tea producer in the world. George Williamson went on to acquire and manage tea estates in East Africa. This effort was pioneered by Richard Magor. In April 2001, George Williamson & Company, Kolkata and Williamson Magor & Company, Kolkata mutually decided to separate and work independently. As a result, George Williamson & Company, London ceased to be the overseas partners and selling agents for Williamson Magor & Company, who forged their own links and have now developed a competent overseas sales network.<br />
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The offices of the Williamson Magor Group were shifted from 7 China Bazar Street to 4 Mangoe Lane in 1894. Originally known as Hampton Court, the premises was redeveloped through the mid 1960s.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWaa7XGBnR790CPRSqP8MF92bur_6GMNxJvENM6WdTnHXaXREzpQuu1i5FlRh-sZStmpUglk1031IcEBryRGOkvMRIUSzfauuf716a_VjYnhnYn53arysFI32bf_j7tevpLFbZJA/s1600/oldbuilding.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="118" data-original-width="140" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiWaa7XGBnR790CPRSqP8MF92bur_6GMNxJvENM6WdTnHXaXREzpQuu1i5FlRh-sZStmpUglk1031IcEBryRGOkvMRIUSzfauuf716a_VjYnhnYn53arysFI32bf_j7tevpLFbZJA/s1600/oldbuilding.jpg" /></a></div>
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Mangoe Lane tells its own story. It was lined with mango trees on both sides and presumably took its name from these, though why the 'e', which normally appears only in the plural from 'mangoes', should have been tagged on is not known.<br />
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The foundation stone of the splendid new building was laid on the 24th January, 1966 by Mrs. O. J. Roy.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgauKglbNFnT8QXhW8XO2_Qk1DYPlpbRGQ-GtjErSHkvBJtWRnY3n4lAQzX5Z8iCN1CExje7XkVJpZ_LTnVF51DkrqmP92JGPECUIH8IYAf8L6VFnjKtQcSMdkOGM1CNAnX36UHfw/s1600/newbuil.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="207" data-original-width="117" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgauKglbNFnT8QXhW8XO2_Qk1DYPlpbRGQ-GtjErSHkvBJtWRnY3n4lAQzX5Z8iCN1CExje7XkVJpZ_LTnVF51DkrqmP92JGPECUIH8IYAf8L6VFnjKtQcSMdkOGM1CNAnX36UHfw/s1600/newbuil.jpg" /></a></div>
Rising nine floors from street level, with an attractive penthouse on top of the ninth storey, the building, with its somewhat severe lines, is in keeping with modern trends of architecture.<br />
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One of the most important features of the eighth floor is the very well-equipped tea tasting room, which is situated on the north side or front of the building in order to provide optimum working conditions for the "spitting" staff.<br />
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The ten storey block - which stands to the present day - was officially opened in 1968. This asset proved to be a valuable investment as a number of floors were let out...<br />
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Williamson magor as such does not have much sales or profits to show.. it does however have number of listed companies where Williamson magor has large shareholding. As already mentioned It has shareholding in:<br />
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Eveready Industries (Indias largest battery maker and worlds one of the top 5 battery makers) Sales:1418Cr <br />
Shareholding: 23.40%<br />
<a href="http://www.evereadyindia.com/">http://www.evereadyindia.com/</a><br />
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Mcleod Russell India Limited is worlds largest bulk tea producer in tea estates in India, Srilanka, Vietnam, Africa. 39,770 hectares of tea estate and 100 million Kg of tea sold every year.<br />
Sales: 1485Cr<br />
Shareholding:10.65%<br />
<a href="http://www.mcleodrussel.com/">http://www.mcleodrussel.com/</a><br />
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Mcnally Bharat Engineering Company is an engineering company providing tunrkey solutions in power, Steel, coal mining, ports, Aluminium, material handling, mineral processing,Cement, Water, Oil & Gas and Infrastructure sectors such as Buildings & Townships, High Rises, Roads, Metro, Rail etc. Over 350 plants have been constructed on a turnkey basis by MBE till date. Sales :1924Cr Shareholding: 23.26%<br />
<a href="http://www.mcnallybharat.com/">http://www.mcnallybharat.com/</a><br />
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Kilburn Engineering: Specialized for nearly four decades in Process Design, Manufacture, Supply, Installation and Commissioning of various critically customized process equipment for diverse applications<br />
Sales: 136cr<br />
Shareholding: 32.58%<br />
<a href="http://www.kilburnengg.com/">http://www.kilburnengg.com/</a><br />
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Majerhat Estate & developers limited:<br />
Sales: not listed<br />
Shareholding: 49%<br />
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D1 Williamson magor Biofuels<br />
Shareholding: 15.70%<br />
Sales : not listed<br />
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Company has invested in preference shares issued by Mcnally Bharat Engineering worth 500Cr and Williamson magor has taken loan for the same.. this has increased its debt burden.<br />
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Financially the company looks like its in doldrums with losses .. but its all because of the re-capitalization of Mcnally bharat engineering.<br />
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What really caught my eye if this:<br />
No of shareholders decreasing every year..<br />
Dec 2015: 8449<br />
Dec 2016: 8191<br />
Dec 2017: 6926<br />
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As can be seen there has been a major decrease in the no of shareholders which means accumulation has happened by strong hands...<br />
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If you see the annual report March 2017.. the company has conveniently left out its significant asset heavy companies from its consolidated results because: (Unavailability of IGAAP compliant financial statement)<br />
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if you include these associates in consolidated results..<br />
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Books Value should be up by: 6774.96(lakhs Eveready industries) + 2381.12 (lakhs Mcnally bharat)<br />
Increase in book value: 91.56Cr<br />
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Profits not consolidated: 9191.65 (lakhs Eveready industries) + (-ve) 5875.19 (Lakhs Mcnally Bharat) Increase in Profits: 33.16Cr<br />
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Current Market Cap of Williamson Magor is: 113.78Cr<br />
Book Value is 92Cr<br />
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so include the associates not included (according to annual report march 2017) and book value doubles and loss becomes a profit..<br />
Now if you look at the books company has taken close to 500-600Cr in loans to invest in Mcnally bharat engineering which means Williamson has assets now.. worth atleast 1000-1200Cr worth at current valuations..<br />
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Now 500-600Cr is on loan so Im sure the management would like to turn this around ASAP as it is incurring interest payout.. so we could see a turnaround in Mcnally bharat engineering .. (which is also attractively priced)<br />
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This will increase WM(Williamson magor) consolidated profits and it will also reduce its debt (loaned money will be returned.. )<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgEDmn0JUsZay0smiWFlQabS-6n4sZK7mUgT__uzytbRLBMAVXANlUKgrd5irj9cEqdarkpyJyzw6KWKfCyBGQSJyFk3FxK2DQx9gR1mz6KzPKxi5Rg7-jix8sA-4JDB54sTTSgdw/s1600/williamson-magor-chart.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="541" data-original-width="770" height="280" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgEDmn0JUsZay0smiWFlQabS-6n4sZK7mUgT__uzytbRLBMAVXANlUKgrd5irj9cEqdarkpyJyzw6KWKfCyBGQSJyFk3FxK2DQx9gR1mz6KzPKxi5Rg7-jix8sA-4JDB54sTTSgdw/s400/williamson-magor-chart.png" width="400" /></a></div>
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If you see the charts.. we can see that Williamson magor is breaking out and setting new long term highs.. even when its reporting losses..<br />
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<span style="color: red;"><b>Conclusion: </b> Williamson Magor is about 100yrs old company..it broke itself into multiple parts and became an asset/holding company. over the years these associates have entrenched themselves into heavy engineering, tea business and battery business. They have other unlisted associates in the real estate business. As the parent holding company Willaimson magor has substantial holdings in all these associates which should be more than its current market cap of 110Cr. With the new understanding that being rich is good .. these closet asset rich companies could easily unlock their hidden wealth.. listed companies have sales worth 3500Cr which means we can expect 35x return for long term investors.. </span><br />
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<span style="color: red;"><b>PN: this blog is for my own investment though process.. and not a recommendation for investors to buy/sell shares.. please do your own deep dive before investing and take advise from registered investment advisors.. I am not an Investment advisor..!!</b></span><br />
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What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com7tag:blogger.com,1999:blog-14410328.post-27318511538663472672017-12-04T23:50:00.001+05:302017-12-04T23:50:34.290+05:30Tilaknagar Industries: Picture Tau Abhi Baaki Hai!!<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8c1UbXU_MwhEPJneaKKlQ8E83k_bgiIDUt_c_upzjKuZhJn2HZ_0pmqFzj6Q11dj-kf6xbx0hPwRx5Ga6iFjIbj_1BXEJFL258wsnFCVGmQcOKslpTXoK5-O79i94Z256wkbIzQ/s1600/logoTilaknagar.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="156" data-original-width="261" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8c1UbXU_MwhEPJneaKKlQ8E83k_bgiIDUt_c_upzjKuZhJn2HZ_0pmqFzj6Q11dj-kf6xbx0hPwRx5Ga6iFjIbj_1BXEJFL258wsnFCVGmQcOKslpTXoK5-O79i94Z256wkbIzQ/s1600/logoTilaknagar.png" /></a></div>
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Tilaknagar Industries:<script type="text/javascript">
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CMP:21.55</div>
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Market Cap: 268.85Cr</div>
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March 2017</div>
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Consolidated Sales: 490Cr </div>
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Net Profit: -ve 276Cr(loss)<br />
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Tilaknagar is up about 100% from its 52 week low 10.2</div>
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Tilaknagar Industries Ltd. (TI) is a leading player in the liquor industry and manufactures Indian Made Foreign Liquor (IMFL). Established in 1933 as Maharashtra Sugar Mills Ltd. (MSM), the company transitioned to the liquor business in 1987. Over its 75 year existence, TI has grown to be an organisation committed to quality, excellence and integrity.</div>
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TI which is the erstwhile "The Maharashtra Sugar Mills Limited" (MSM) was promoted in 1933 by the illustrious industrialist and visionary Shri Mahadev L Dahanukar popularly known as Babasaheb Dahanukar. The company was then engaged in the manufacture of sugar and allied products.</div>
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Babasaheb’s efforts were guided by noted freedom fighter Lokmanya Balgangadhar Tilak, and he named the factory complex 'Tilaknagar' as a token of respect for Lokmanya Tilak. The company had an unfailing record of paying dividend for more than 50 years. In deference to the policy of the Government to have all sugar businesses in the country under the control and management of Co-operative Societies formed by farmers, the Company had to stop its sugar business in 1987.</div>
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Tilaknagar Distilleries & Industries Ltd. was promoted as a 100 per cent subsidiary of The Maharashtra Sugar Mills Ltd. The year 1973 saw TI diversify into the businesses of Industrial Alcohol, Indian Made Foreign Liquor (IMFL) and Sugar Cubes. Both Maharashtra Sugar Mills Ltd. and Tilaknagar Distilleries & Industries Ltd have been merged to form Tilaknagar Industries Ltd. with effect from August 6, 1993.</div>
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Since then TI has been engaged in the business of manufacture and distribution of spirit and Indian Made Foreign Liquor (IMFL). There has been no change in the promoter of the company. The ‘Dahanukar family’ continues to be the promoter of TI(Tilaknagar Industries), sharing the same vision and values of the founders.</div>
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Due to its core competency in alcoholic beverages and conscious efforts, TI swiftly established its distinct identity in the liquor industry. Today TI’s brand portfolio consists of unique and diverse brands that enjoy excellent consumer preference solely due to their quality and value for money.</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjzNzl4pGMMEgiyrUjOOzFQZXW7xhtWbh_AvsK3ESduGqtTKDeRL4ncoNmNUkLP1krC0vXdA1fjUYaek8sSXJ5hJA-FQ_IwG04a8vLuZzwR_H6npWuur3xGa67sS_Jpf4g56Cj5tA/s1600/TI-chart.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="489" data-original-width="762" height="256" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjzNzl4pGMMEgiyrUjOOzFQZXW7xhtWbh_AvsK3ESduGqtTKDeRL4ncoNmNUkLP1krC0vXdA1fjUYaek8sSXJ5hJA-FQ_IwG04a8vLuZzwR_H6npWuur3xGa67sS_Jpf4g56Cj5tA/s400/TI-chart.png" width="400" /></a></div>
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Looking at the long term charts we can see that TI is quoting close to lifetime Lows..</div>
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999EMA (5 yrs exponential moving avg) is: 24.89<br />
On 27th Nov 2017 TI days high was 25(above its 5 yrs EMA) stock closed @ 23.95</div>
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looking at the chart the stock seemed to have bottomed out...</div>
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Looking at the consolidated balance sheet: we can see the reason for dismal share price..</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiO9x9lqzwGoffo8EgnKnx4Nfs6mVpy-2ZnPKwfKz3Dk-FmucHwuWMiKj6FqS0mjIB5chLht7oZA5KRMy0DYyh-24X1aeCp21bntkpfsI2MguME6xXKFI-G_VQ7TTnDIBTxHvl-dw/s1600/ConsBalance-TI.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1373" data-original-width="793" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiO9x9lqzwGoffo8EgnKnx4Nfs6mVpy-2ZnPKwfKz3Dk-FmucHwuWMiKj6FqS0mjIB5chLht7oZA5KRMy0DYyh-24X1aeCp21bntkpfsI2MguME6xXKFI-G_VQ7TTnDIBTxHvl-dw/s320/ConsBalance-TI.png" width="184" /></a></div>
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We can see that:</div>
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- Reserves are negative. the book value is -ve... company seems to have run out of reserves as it has been reporting losses for past few years..(visible in income statement)</div>
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- Long term debt 190cr (2017) is lowest in past 5 yrs.. looks to be a good development but short term debt 633cr (2017) is at highest in past 5 yrs. As we will see the company is having problem raising finances.. and seems to be using short term loans to meet its funding requirements.</div>
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- Capital work in progress of 124Cr ( for past few yrs) for a company with 509Cr of Tangible assets is way too high.. something is not right with this number.. either the capital work in progress is actually on hold.. or something else.. </div>
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- Bonus in Equity share is 108Cr while equity is 124.75Cr so 86% of equity capital is bonus.. so the company seems to have given liberal bonus to shareholders and it indicates a shareholder friendly management.</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi91vLDyb5Nkq_RENcfzdMFnncYRDs-YnzQEmFZDd_nVtxY1vtQsTijOkHfWbL3kYUWTGglcPfq7ZW_JZsm1b6AY7ctX5DdVD7VhDmnpP6fdAuG2vpA1HwBm5ya3H7E7WaPpDOyXw/s1600/TI-Income.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1078" data-original-width="797" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi91vLDyb5Nkq_RENcfzdMFnncYRDs-YnzQEmFZDd_nVtxY1vtQsTijOkHfWbL3kYUWTGglcPfq7ZW_JZsm1b6AY7ctX5DdVD7VhDmnpP6fdAuG2vpA1HwBm5ya3H7E7WaPpDOyXw/s320/TI-Income.png" width="236" /></a></div>
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Income statement is also not a pretty picture.</div>
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- sales have increased to 490cr (2017) from 461cr a growth of 6%..</div>
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- cost of Material/Total revenue = 62% (2017) Vs 44% (2015)</div>
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clearly a price increase is required..</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiobCBNiQEHukbnzT_BjexXcnu62vil6DzAnM7FncMABH7aBpMTht6rhjJZ4s2_d5nPbrBSQusAVdXXoqKI6BiQU0vApcNdBZmERiKOWR4fNLXMt-xyMJ1n0PwRoRk2Ew4SWCEiVQ/s1600/CostOfMaterial.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="173" data-original-width="704" height="78" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiobCBNiQEHukbnzT_BjexXcnu62vil6DzAnM7FncMABH7aBpMTht6rhjJZ4s2_d5nPbrBSQusAVdXXoqKI6BiQU0vApcNdBZmERiKOWR4fNLXMt-xyMJ1n0PwRoRk2Ew4SWCEiVQ/s320/CostOfMaterial.png" width="320" /></a></div>
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- Finance cost has increased to 156.4cr(2017) from 125cr(2016)</div>
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Important to understand that interest cost is different from finance cost.</div>
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Finance cost = interest cost + other finance related expenses.. dont know if repayment of loans is also included in financial cost?.. having said that in AR-2017(Annual Report March 2017) the debt has increased..<br />
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Total debt 31 March 2016: 945.125cr , 828.45cr (secured debt including interest due) & 116.66cr unsecured debt (including interest due)<br />
Total debt End of 31 March 2017: 1077.348cr, 970.73cr is secured debt(including interest due) + 106.61cr (unsecured debt including interest due)<br />
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so there is an increase in debt by 132.23cr.., unsecured debt is down by 10cr..<br />
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Sept 2017 Quarterly results(not yet out) include half yearly data and balance sheet data.. so we will get some idea about how things have progressed.. in past six months.. Personally I feel we will not see a reduction in debt.. as company still needs additional cash for working capital.. we might however see an increase in topline sales..<br />
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Till now there is nothing to say that tilaknagar is still tumbling down the rabbit hole or its digging its way out .. well I was looking at the financial ratio data..<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPEKbKRxxIZ1SdG6hE9MJIU3LOjSWCvsQSuxGeGNlUFKgxvQOxt2r1l_akHYG3XskVEjqGy8DpWos47o_jdYoqvI-LZCfWXSqCxvrZjYEt4EtqE_vB1mExpOx0Y2Gavd71OztU9Q/s1600/TI-financialRatio.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="574" data-original-width="1430" height="160" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPEKbKRxxIZ1SdG6hE9MJIU3LOjSWCvsQSuxGeGNlUFKgxvQOxt2r1l_akHYG3XskVEjqGy8DpWos47o_jdYoqvI-LZCfWXSqCxvrZjYEt4EtqE_vB1mExpOx0Y2Gavd71OztU9Q/s400/TI-financialRatio.png" width="400" /></a></div>
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ROA(Return on Assets), ROE(Return on Equity), ROCE(Return on Capital Employed) all are deep in negative territory.. and that's not a good sign..<br />
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There is however one Financial Ratio: Cash Conversion cycle... which has turned -ve (and that's good) -ve 41.18<br />
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Cash conversion cycle is nothing but : Net Current Assets. A -ve net current asset means the company is generating a float from its operations. Current Assets -Current Liabilities.<br />
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The Company in its every day operations buys raw material(inputs) and Sells its product(output)<br />
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The raw material seller (input provider)gives a say 60 day payment period. (current Liability)and<br />
The Product Buyer (Output buyer) also asks for a 60 day payment period..(current Asset)<br />
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Now if we say Ask the Input provider for 70 Days payment period.. And(increasing Current Liability)<br />
we ask the Product buyer also to pay by 45 days ..that means effectively (decreasing Current Assets)<br />
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70-45 = 25 days... I as the producer will get 25 days float!!. interest free... effectively the 70 day payment period provided by the supplier is enough for me to sell the product and get the payment back.. and infact I can earn 25 Days of Float!!..<br />
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Looking at the cash conversion cycle.. it looks like Tilaknagar is generating a 41 day float..<br />
total sales is 490Cr assuming 200 days in a year (stock market is open for 200 days in a year)<br />
that's like 2.45Cr of sales in a day.. float of 41 days means = 41x2.45 = 100.45Cr of float (1 day)<br />
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Now you might say all this is wishful thinking .. well lets look at a Super Blue Chip Like Hindustan Unilever Ltd and look at its cash conversion cycle..<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidThU3e0KG4EFbVRQ1pfwENjIfh8x1kKWkXlr3gb7VwhXsNNzECu4zaHNkUy1vjnwPFHIsFxDbgDh3RqCpMSoAQMsmIOpECVzmM6Ko8SzntxvK4bv0LMtxTzUXCkKxLMfrA_Tm6w/s1600/HUL-FinancialRatio.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="562" data-original-width="1435" height="156" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidThU3e0KG4EFbVRQ1pfwENjIfh8x1kKWkXlr3gb7VwhXsNNzECu4zaHNkUy1vjnwPFHIsFxDbgDh3RqCpMSoAQMsmIOpECVzmM6Ko8SzntxvK4bv0LMtxTzUXCkKxLMfrA_Tm6w/s400/HUL-FinancialRatio.png" width="400" /></a></div>
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Holy Cow!!!..<br />
Cash Conversion Cycle: -ve for past 10 yrs..<br />
10 yrs Avg Cash Conversion Cycle for HUL: -ve 30.94!!<br />
and look at the ROCE, ROE,ROA.. Off the Charts!! HUL is like google.. generates only free cash !!!<br />
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Also March 2017 Annual report indicates some big name investor (Chug family) invested in Tilaknagar Industry stock..<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgLOiZd2gB1KTdX_WOaVI14oJ7W1ysnhCpS6lJR6tf2B_IHWE3YJuA-bDbBzyRmaVaDN0dEGx8d6sy-JpIioOlpmneSxMpSVbynKRQgQNXBM1Rps26f24TtQJZP1PZ08Ae2R2JWQ/s1600/TI-T10-shareholder.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="577" data-original-width="1022" height="225" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgLOiZd2gB1KTdX_WOaVI14oJ7W1ysnhCpS6lJR6tf2B_IHWE3YJuA-bDbBzyRmaVaDN0dEGx8d6sy-JpIioOlpmneSxMpSVbynKRQgQNXBM1Rps26f24TtQJZP1PZ08Ae2R2JWQ/s400/TI-T10-shareholder.png" width="400" /></a></div>
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<span style="color: red;"><b>Conclusion: </b>Tilaknagar is still swimming with the sharks.. but if you see carefully the management is improvising.. changing strategy .. looking to turn around the ship .. towards safer waters.. Its still not shipshape .. but within a few years I bet we will not be able to recognize Tilaknagar. Company was formed in 1933 and has faced tough challenges before.. Mansion House is a well established Leading Brand of Brandy.(2nd largest selling brandy in India). Mansion House Whiskey is also very good!! (I dont drink but my dad does) I'm sure the current management has the tenacity to come out of this in flying colours.. Long Term INVEST.. CHEERS!!</span><br />
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PN: This blog is not for suggesting or giving any investment advice.. it is more of a time log of my investment journey.. Pls do your own deep dive and get advise from a SEBI registered investment advisor (I am not an investment advisor!!)<br />
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=happy Investing<br />
whatsup-indianstockideas.blogspot.com<br />
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What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com5tag:blogger.com,1999:blog-14410328.post-78341446447399135342017-10-23T21:05:00.000+05:302017-10-23T21:05:12.830+05:30How Are We Doing Diwali 2017<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px;">Wishing All Investors. Readers & Visitors A Very Happy, Healthy and Prosperous New Year...</span><br style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px;" /><span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px;">Let us start with a review of performance of stocks reviewed/recommended in this blog.</span><div class="separator" style="clear: both; text-align: center;">
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px;">A total of 34 stocks have been reviewed in the blog. Hypothetically anyone who invested 10,000/- in each recommended stock (at the recommended price) would have invested 3,40,000/- and on Oct 20,2017 the market value of the stocks would be 14,11,393/- giving you an absolute value of 315% increase in your investment... including dividend it would be 330%. </span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px;">If invested in only recommended best buy stocks (GAEL,NHPC, Tata Communications, Tata Power) would have resulted in an absolute value of 359% increase</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px;">If invested in only dividend paying stocks the absolute value return is: 406.85%..</span></div>
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<span style="color: #333333; font-family: Georgia, serif;"><span style="background-color: white; font-size: 13px;">Nifty and Sensex over the same period have given absolute return of 134% and 127% (approximately 15% per annum) our returns have been around 315% (approximately 37.5% per annum) </span></span></div>
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<span style="color: #333333; font-family: Georgia, serif;"><span style="background-color: white; font-size: 13px;">of course these are not strictly comparable.. as NIFTY does adjust the stocks that make up the index... while ours is a constant list.. with only additions and no subtractions...</span></span></div>
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<span style="color: #333333; font-family: Georgia, serif;"><span style="background-color: white; font-size: 13px;">The markets are doing well and will continue to do well.. the underlying reason is the rush of liquidity..</span></span></div>
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<span style="color: #333333; font-family: Georgia, serif;"><span style="background-color: white; font-size: 13px;">At an international level a large part of the bank funds (Quantitative Easing money ) was parked with the FED earning some 0.25% and importantly outside the financial market hands....With increase in FED rates.. This QE fund has moved out of the FED books into the financial market increasing liquidity.. </span></span></div>
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<span style="color: #333333; font-family: Georgia, serif;"><span style="background-color: white; font-size: 13px;">In India the sudden interest of indian public to invest in financial assets </span></span><span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px;">instead of gold and real estate has increased the amount of domestic capital available.. pushing FII money to the "back bencher" state </span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px;">also with govt interest in identifying the true owners of assets by linking them with Aadhar numbers (biometric identity) it is removing duplicate PAN number holders.. </span></div>
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<span style="color: #333333; font-family: Georgia, serif;"><span style="background-color: white;"><span style="font-size: 13px;">HNI investors who were hiding their wealth using multiple/fictitious PAN account numbers are now feeling the heat and so we are seeing that everyone is coming clean with their assets..</span></span></span></div>
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<span style="color: #333333; font-family: Georgia, serif;"><span style="background-color: white;"><span style="font-size: 13px;">Banks under strict Basel-III guidelines are giving loans to financially sound companies.. forcing management to report strong cash flows and healthy bottomlines.. </span></span></span></div>
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<span style="color: #333333; font-family: Georgia, serif;"><span style="background-color: white;"><span style="font-size: 13px;">with India entering into the golden age with highest population of working age indians..(also known as Demographic Dividend) we can expect demand for goods to be steadily increasing for the next 10 years..</span></span></span></div>
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<span style="color: #333333; font-family: Georgia, serif;"><span style="background-color: white;"><span style="font-size: 13px;">All things are pointing to a steady increase in market value of stocks.. we will see corrections but should be small corrections.. </span></span></span></div>
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<span style="color: #333333; font-family: Georgia, serif;"><span style="background-color: white;"><span style="font-size: 13px;">There are possible bottlenecks.. One thing that could be a black swan event is "peak oil" i.e. oil price rising to economically unsustainable levels..(which could manifest in global escalation in conflict) BASEL-III though is sapping out liquidity by reducing the turnover rates of money.. it could result in demand contraction world wide and have -ve side effect on indian growth story.. </span></span></span></div>
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<span style="font-family: Georgia, serif;"><span style="background-color: white;"><span style="font-size: 13px;"><b style="color: #333333;">Conclusion:</b> <span style="color: red;">India should see steady increase in demand due to good demographic data.. growth in India is given.. so its positive for companies. most stocks are priced to perfection but there are stocks discussed which are still fairly priced. remain invested is the suggestion.. as corrections will be short lived.. (Not counting Peak oil Black swan event..) </span></span></span></span></div>
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What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com11tag:blogger.com,1999:blog-14410328.post-84704292599761856552017-08-27T00:57:00.000+05:302017-08-27T00:57:27.081+05:30Kulkarni Power Tools: Deep Value.Kulkarni Power Tools: <br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgadc71NGUCMGzV38q4J05Kruj8H_NMshzDQvoZuOF3M2N2y8FS_ABnIYKd2FDiV5n7hx9mYev_lo0HZwejCv-l57DCNtdWetclfUr7re_4js86TvdxJuRu71ECBA9oF4XacbjRQw/s1600/kpt-power-tools-logo.gif" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" data-original-height="60" data-original-width="192" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgadc71NGUCMGzV38q4J05Kruj8H_NMshzDQvoZuOF3M2N2y8FS_ABnIYKd2FDiV5n7hx9mYev_lo0HZwejCv-l57DCNtdWetclfUr7re_4js86TvdxJuRu71ECBA9oF4XacbjRQw/s1600/kpt-power-tools-logo.gif" /></a></div>
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CMP: 30.05</div>
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MCap: 10.22Cr</div>
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Sales March 2017:69.22Cr</div>
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Net Profit: -7.16Cr</div>
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<a href="http://www.kpt.co.in/" target="_blank">http://www.kpt.co.in/</a></div>
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KPT.. <span style="color: red;"><u><i>Where Positive Change is the Only Constant</i></u></span></div>
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Over the last 25 years, since its inception, KPT has kept pace with change. An in-depth understanding of changing customer requirements has guided us into delivering world-class quality, in the manufacturing and marketing of electric power tools.</div>
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The story of KPT goes further back. It was founded in 1976 as a Joint Venture with Black&Decker, USA. The first sign of radical change occurred in 1993, when KPT celebrated its independence.</div>
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Today, our state-of-the-art plant at Shirol, Maharashtra, specializes in manufacturing Electric Power Tools, Spares, Control Motors and Blowers.</div>
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Over the years, our quality products, supported by our sincere service has helped us garner the faith of many discerning names, as loyal customers.</div>
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But for us at KPT, that not a reason to celebrate, but to reinvent ourselves. So that we can address the rapidly changing demands of the 21st century. </div>
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KPT has three Divisions:</div>
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<li style="text-align: justify;"><b>KPT Blowers</b></li>
<li style="text-align: justify;"><b>KPT Power Tools</b></li>
<li style="text-align: justify;"><b>KPT Shakti Tools</b></li>
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<b>KPT Blowers: </b>In 2004, KPT entered in business to manufacture Roots (Positive Displacement) Blowers / Exhausters. These Blowers / Exhausters are required for Water / Effluent / Sewage Treatment Plants, Pneumatic Conveying Systems, Dairy and Bakery Industry, Petrochemical, Chemical, Fertilizers, Glass, Power Plants, Mining, Agriculture, Food Processing Plants, etc</div>
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<b>Applications: </b></div>
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Ore Processing :- Cake Blowing, Combustion air, Vacuum filtration</div>
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Distilleries: - Liquor moving, Conveying Of grains etc.</div>
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Fishery :- Aeration of fish Tanks, Removal of eggs from fish, Agitation of washing tanks</div>
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Glass : -Pneumatic Convey of vac. Holding of sheet glass for transfer ,Evacuation of test chamber</div>
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Steel mills – Blast furnace air supply, coke oven exhauster, fly ash collections, combustion air for open health furnace.</div>
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Coal :- Coal Washing, Tunnel ventilation, Dust Collection</div>
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Conveying :- Pneumatic, Vacuum, or combination for material such as coal, salt, cement ,sand, feeds, fly ash, sugar, starch, carbon black, transfer material from trucks, hoppers</div>
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Food Processing :- Flower / sugar Conveying,</div>
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Sugar :- Pneumatic Conveying, sulphdization, Aeration of storage bins, vacuum filtration</div>
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Water Treatment :- Saline Water, Desalinization, salt water Desalinization</div>
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Sewage: - Aeration in activated sludge plants – Industrial, municipal, communities.</div>
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<b>KPT Power Tools:- </b>KPT product range includes Drills, Angle Grinders, Sanders, Polishers, Tile Cutters, Cut-off Saws, Valve Master Refacer's, etc.</div>
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KPT products are used in - Bus Body Building, Rail Coaches, Ship Yards, Fabrication Work, Pipe Laying for Refineries, for electrician / plumber / wood working etc.</div>
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<b> KPT Shakti Tools:- </b>KPT introduces a new range of SHAKTI TOOLS & many more...</div>
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SHAKTI TOOLS range includes Garden Tools, Pressure Washers, Vacuum Cleaners, Drills, Grinders, Rotary Hammers, Demolition Hammers, Diamond Tools, Wall Chasers, Mixers, Water Grinders, Vibrators, Marble Cutters, Planers, Routers, Trimmers, Saws, Cordless Tools, Car Polishers, Sanders, Bench Top Tools, Detectors, Measuring Lasers and Artisan Tool Kits. </div>
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<b>Clients:- </b>Voltas, Infosys, Wipro, Crompton Greaves, Kirloskar, Prism Cement, Aditya Birla Cement, Ambuja Cement, Alstom Projects, Asian Paints, Forbes Gokak, Bhushan Steel, Tata Steel, Siemens, NALCO, NMDC, HEG, INDOFIL, Indian Oil, IPCL(Reliance Industries), Mahindra & Mahindra, L&T, Ranbaxy, P&G, Coco Cola, GSK, Nestle, Jubilant, NTPC, Thermax, BGR Energy, ITC, Rainbow Papers, TNPL, Taj Hotels.</div>
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Power Tools, Blowers and spares are the three main segments, Grinders & sanders make up 23% of sales, Root blowers: 18%, Drills :13% (Business activites contributing more than 10% of sales)<br />
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KPT exports its products to Middle East, Africa, Nigeria and South Africa, South East Asia and SAARC countries under brand name "POWERMASTER".<br />
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<a href="http://www.kpt.co.in/investor-relation/financial-results/KPT-Annual-Report-2016-17.pdf" target="_blank">Annual Report -2016-17</a><br />
<a href="http://www.kpt.co.in/investor-relation/financial-results/KPT-Annual-Report-2016-Final.pdf" target="_blank">Annual Report-2015-16</a><br />
<a href="http://www.kpt.co.in/investor-relation/financial-results/2014-15-Annual-Financial-Report.pdf" target="_blank">Annual Report-2014-15</a><br />
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KPT seems to be a well run company..reporting losses as promoters are increasing stake in the company..<br />
June 2014: Promoter holding: 43.8%<br />
June 2015: Promoter holding: 48.04%<br />
June 2016: Promoter holding: 48.08%<br />
June 2017: Promoter holding: 48.22%<br />
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looking at the Cash Flows from Operations: 10yrs Avg Cash Flows from Operations: +ve 6.95Cr while current market cap is: 10.22Cr (CMP:30.05) The promoters are it seems of conservative in nature...<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHea-OuwxE6U9x38QgE7swyWuFWaGA3uTWbEaUk6zqyogI5GN0xXTImJ7a3X2sNB9elApDeWPjL9VGmSJNLBeSpL99UWNQk4zDLCDua2y2BvI1igeyg_WWQFFo58_lbXTwSIwEmQ/s1600/KPT+Cash+flows.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="286" data-original-width="1166" height="97" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhHea-OuwxE6U9x38QgE7swyWuFWaGA3uTWbEaUk6zqyogI5GN0xXTImJ7a3X2sNB9elApDeWPjL9VGmSJNLBeSpL99UWNQk4zDLCDua2y2BvI1igeyg_WWQFFo58_lbXTwSIwEmQ/s400/KPT+Cash+flows.png" width="400" /></a></div>
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5 yrs EMA is 36.94 so right now you can buy kulkarni power tools at a price below its 5 yrs avg price of 36.94..<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKyRLxB7GCDYq6LYpHbwW65FqwHjpiM1WltVvvuW_MTmLusF-WAygcRqvc8ar2q72Yk6to8Q9PQnaGPGQLBeKxb2PmGMv9HV1zcgVg-73vPtPFBC5GxA1XziFOipmK-dggjUpC0w/s1600/Chart-KPT.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="497" data-original-width="770" height="257" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgKyRLxB7GCDYq6LYpHbwW65FqwHjpiM1WltVvvuW_MTmLusF-WAygcRqvc8ar2q72Yk6to8Q9PQnaGPGQLBeKxb2PmGMv9HV1zcgVg-73vPtPFBC5GxA1XziFOipmK-dggjUpC0w/s400/Chart-KPT.png" width="400" /></a></div>
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<span style="color: red;">Conclusion: KPT initially started off with Black & Decker and has the right lineage.. with experience they decided to part ways and build their own Power Tool Brand (KPT, Shakti, Power Master).. the company prefers to maintain a low profile.. Power Tools increase the productivity of employees and the country as a whole.. I'm sure as India moves to the next level.. Power tools demand is going to increase through the roof.. and KPT will be there to benefit from it. With GST in place we can expect a more level playing field against chinese imports and KPT and indigenous manufacturers need to lobby for better protection.. I went to a shop to buy a drill and there it was a Chinese drill and it had a market price of 500/- INR printed on it.. I protested to the shopkeeper.. that's its written 500/- and you are saying its cost is 1800/- well he said that to avoid taxes the printed price is always like this for Chinese products.. Players like KPT should step forward and get meaningfull/effective legislation.. well further research landed me to KPT...so some good came out of it..</span></div>
<span style="color: red;">=happy investing</span><br />
<span style="color: red;">whatsup-indianstockideas.blogspot.com</span><br />
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</script>What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com12tag:blogger.com,1999:blog-14410328.post-36015934620849279542017-07-28T22:07:00.000+05:302017-07-28T22:07:20.448+05:30CenLub Industries: Hidden Gem..<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3VqsXh3MN8Ini4eoDH2LVbCpAcXtJXYPRqN_OeDVI_2rQ83oRbUEEnianj8J5dVTL3_2qiNUbfhnhZMv4IDwIjHu9ot2mce3fWVKx0uPkDU3XI1ljcX18Tre-ZnM1ObwLpMglnQ/s1600/Cenlube-logo.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="65" data-original-width="201" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3VqsXh3MN8Ini4eoDH2LVbCpAcXtJXYPRqN_OeDVI_2rQ83oRbUEEnianj8J5dVTL3_2qiNUbfhnhZMv4IDwIjHu9ot2mce3fWVKx0uPkDU3XI1ljcX18Tre-ZnM1ObwLpMglnQ/s1600/Cenlube-logo.jpg" /></a></div>
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CenLube Industries:</div>
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CMP:56.50 </div>
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MCap: 23.28Cr</div>
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Consolidated March 2017: Sales: 35.53Cr, Net Profit: 1.74Cr</div>
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<a href="http://www.cenlub.in/">http://www.cenlub.in/</a></div>
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<a href="http://www.bseindia.com/stock-share-price/stockreach_annualreports.aspx?scripcode=522251&expandable=0">Annual Reports </a></div>
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Lubrication is a prime requirement for all machines, equipments or plants as it adds to the life and efficiency of the the machine by reducing wear and tear of its parts. The lubricating oil forms a film between the moving parts which results in lesser friction and correspondingly less heat generation in the machine, thereby keeping the working temperature of machine parts within safe operating limits. Wear and tear of parts is thus greatly reduced resulting in fewer breakdowns, greater machine utility, lower maintenance cost and longer machine life.</div>
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Cenlub Industries Limited, a Public Limited Company having its registered office at Plot No. 233-234, Sector-58, Ballabgarh, Faridabad - 121 004, Haryana. Basically the company is in the field of design, manufacture and supply of Centralised Lubrication System for various Machines, Plants and Equipments.<br />Registered office / Plant-1<br /><br />It is a listed company at Bombay Stock Exchange incorporated under the Companies Act, 1956 by Registrar of Companies, Delhi & Haryana in the year 1992.<br /><br />The company has been promoted, mainly, by Mr. V.K. Mittal , Managing Director - a Mechanical Engineer with M.Sc. (Physics), M.Sc. Mech. Engg. specialization in Machine Tools from Moscow. He has worked at senior position in TELCO for more than a decade. He started working on import-substitution of lubrication systems for machine tools in 1977 and has been instrumental in making the company a profitable concern in this field. In recognition of his capabilities, Haryana Government bestowed "Prize for Enterpreneurship" on him for 1987 - 88. He has widely travelled overseas and is fully aware of the latest trends in this field.</div>
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The company has 17 offices all over India to take care of Sales and Service i.e. Aurangabad, Ahmedabad, Bangalore, Bhuvaneshwar, Dhanbad, Chandigarh, Chennai, Coimbatore, Faridabad, Hyderabad, Jamshedpur, Kolkata, Mumbai, Pune, Rourkela, Rajkot and Visakhapatnam.<br /><br />The company is having 3 manufacturing units as under, which are totally independent:-</div>
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The total number of employees are around 225.<br /><br />The company has its own proprietary items of Lubrication Pumps and Accessories and most of them are existing for the last 35 years.<br /><br />The company has the capability to take turn-key projects from concept to commissioning. These projects are basically related to Plant Lubrications for Steel, Power, Paper, Sugar etc. which are normally approved on blue print stage before taking up for manufacturing.<br /><br />The company has bagged the following prestigious awards :-<br /></div>
<ul style="text-align: justify;">
<li>"FIE foundation" award for import substitution activity at IMTEX'86 exhibition.</li>
<li>Transworld Trade Fair "Gold Medal" selection award in the year 1987.</li>
<li>"Entrepreneurship" award by Government of Haryana in the year 1987-88.</li>
<li>"Best display" award in the 9th Indian Engineering Trade Fair in the year 1991.</li>
<li>"Business Sphere" award for the year 2008-2009 for most respected No.1 Company in Lubrication System.</li>
<li>"Udyog Ratan" award by Institute of Economic Studies (IES) in the year 2009.</li>
</ul>
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Client lists is like the who-who's of indian industry:</div>
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<b>Machine tools:</b></div>
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ACE DESIGNERS, ACE SYSTEM, ALEX,BATLIBOI,BFW,CADMACH,EMTL (ELECTRONICA MACHINE),GALAXY,GEDEE WEILER,GH INDUCTION, HARISH,HEC,HILDEN, HMT, IMPACT, ISGEC, JYOTI CNC, LMW,LOKESH, MAC POWER, MARSHALL, MICROMATIC,NUGEN,PARI, PMT, PRECIHOLE, PREMIER, SCARLO, TAL MANUFACTURING, WINDSOR, ETC.</div>
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<b>Steel Plants:</b></div>
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ADHUNIK METALLIC,ARMECH,BEEKAY ENGG.,BHUSHAN STEEL, BHUVEE PROFILES, BHUWALKA STEEL, ELECTROSTEEL CASTING, ELECTROSTEEL STEELS, ESSAR STEEL, GRADUATE AGRO, H.N. CONSTRUCTION, HULAS STEEL INDS., INDIAN METAL FERRO ALLOYS, ISPAT METALLIC, JINDAL ISPAT STEEL,JINDAL STEEL- HISSAR, JINDAL STEEL-RAIGARH, KINNERA STEEL, KUDERMUKH IRON & STEEL, LLOYDS STEEL,LOI WESMAN, MAHARASHTRA SEAMLESS, MAHINDRA UGINE, MALVIKA STEEL, MIDEAST INTEGRATED STEEL, MUKAND, MULTIFORM MACHINERY, REMI METAL, RENUKA EQUIPMENTS, REYMONDS STEEL, ROLLCON INTERNATIONAL, SAIL - ALLOY STEEL PLANT, SAIL - BHILAI STEEL PLANT, SAIL - BOKARO STEEL PLANT, SAIL - DURGAPUR STEEL PLANT, SAIL - INDIAN IRON & STEEL CO., SAIL - ROURKELA STEEL PLANT, SAIL - SALEM STEEL PLANT, SAIL - VISVESVARAYA IRON & STEEL, SARDA ENERGY & MINERALS, SUNFLAG IRON & STEEL, TATA METALLIC, TATA STEEL GROWTH SHOP., TISCO, TRF, TUNGBHADRA STEEL, UNITED SEAMLESS TUBULAAR, VIDYUT METALLICS,VISAKHAPATNAM STEEL PLANT, WELSPUN STEEL, ETC.</div>
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<b>Sponge Iron Plants: </b><br />A.S.R. MULTIMETALS,ACTION ISPAT & POWER, AGNI STEEL,AIRAN STEEL & POWER, AMBAY SPONGE, AMOD SPONGE, ANAND ISPAT, ANIDITA TRADE & INVESTMENT, ANKIT METAL & POWER, AYARSE PLC, ETHIOPIA, BASAI STEEL, BHAGWATI SPONGE, BHASKAR STEEL, BIMALDEEP STEEL, BINDAL SPONGE, BMM ISPAT, BS SPONGE, CP SPONGE IRON, CREST STEEL & POWER, DAMODAR ISPAT, EVEREST IRON & STEEL-ETHIOPIA, GAGAN RESOURCES, GRACE INDS. LTD., GREWAL ASSOCIATES, HIMA ISPAT, HINDUSTAN CALCINED, HI-TECH MINERAL, HYDERABAD INDS., IDCOL KALINGA IRON, IND AGRO SYNERGY, IST STEEL & POWER, JANKI CORP LTD., JHARKHAND ISPAT, JINDAL SPONGE, KHETAN SPONGE, KOHINOOR ISPAT AND POWER, LAKSHMI GAYATRI STEEL,MA CHHINNAMASTIKA STEEL, MA SAMLESHWARI, MAA CHINNAMASTIKA ISPAT, MAA MAHAMAYA INDUSTRIES, MONNET ISPAT LTD., NAVKAAR ISPAT, NR SPONGE, OCL, PADMAVATI FERROUS, PHIL ISPAT PVT. LTD.,PT DELTA, INDONESIA, RAIGARH ISPAT & POWER, RAJURI STEELS & ALLOYS, RASHMI METALIKS,REACTIVE METAL, REAL ISPAT, RELIABLE SPONGE IRON, RLJ CONCAST, RUNGTA MINES, S.K. SARAWAGI & CO.,SAI SINDHU SPONGE IRON, SATYA POWER AND ISPAT, SEN FERRO ALLOYS, SESHA SAI ISPAT, SHIVALAY ISPAT & POWER, SHREE BAJRANG POWER & ISPAT, SHREE METALLIC, SHREE NAKODA ISPAT, SHREE RADHA INDS.,SHREE SHIVSHAKTI STEEL, SHYAM STEEL, SMC POWER, SUMI VAYAPAAR, SUNVIK STEEL, SURANA INDUSTRIES, THAKUR PRASAD SAO & SONS, TIRUPATI UDYOG, TRIMULA SPONGE IRON, USHA MARTIN, VENKATESHWARA SPONGE, VIJAYA SPONGE & ISPAT,VINAYAK STEEL, ETC.,</div>
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<b>Cement Plants:</b></div>
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ABG CEMENT, ACC, BHAVYA CEMENT, BINANI CEMENT, CHUNAR CEMENT (JAYPEE),DALMIA CEMENT - ARIYALUR, DALMIA CEMENT - DALMIA PURAM,DALMIA CEMENT - KADAPPA,ECO CEMENT, FALCON - BEHRAIN., GRASIM CEMENT, GUJARAT AMBUJA, J.K. CEMENT, JAYPEE BALAJI CEMENT, KAMDHENU CEMENT, KARCEMENT, KAZAKHSTAN, LAKSHMI CEMENT, MADRAS CEMENT, MAIHAR CEMENT, MILLENIUM CEMENT, ORIENT CEMENT, PRISM CEMENT, SAGAR CEMENT, CEMENT, SHREE CEMENT, STAR CEMENT, ULTRATECH, VASAVADATTA CEMENT, VIKRAM CEMENT, ZUARI CEMENT, ETC,</div>
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<b>Sugar Plants</b>: We are the original equipment supplier to Sugar Plant machine
manufacturers such as ISGEC, KAY
IRON,
CIMMCO, TRIVENI etc. We have already supplied our lubrication systems to
various major
Sugar
Plants in India as well as abroad and some of them are:</div>
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ACUCAREIRE XINAVANE, MOZAMBIQUE, AMR SANGAM SUGAR, AP SUGAR, BAJAJ HINDUSTAN, BIJNORE SUGAR MILL, CHADHA SUGAR MILL, CHANDPUR SUGAR MILL, CONSOLIDATED FARMING, ZAMBIA, D. S. M. SUGAR MILL, DALMIA SUGAR, DAURALA SUGAR, DHAMPUR SUGAR MILLS, DSCL SUGAR, EASTERN SUGAR, NEPAL, ENERAGRO PROJECT, ECUADOR, HUTATMA KISAN AHIR SAHAKARI, INDIAN CANE POWER, J.K. SUGAR, JAY MAHESH SUGAR,KAMLAPUR SUGAR MILL, KHOTOLI SUGAR, KISAN SAHKARI CHINI MILL, LOKMANGAL SUGAR, MAWANA SUGAR, MODI SUGAR, MUKERIAN SUGAR, MUZAFFARNAGAR SUGAR MILL, NANDGANJ SIHORI SUGAR MILL, NORTHLAND SUGAR, PALWAL SUGAR MILL, RAMGARH SUGAR, RAVALGAON SUGAR, RELIANCE SUGAR, NEPAL, SAKHOTITANDA, SAKTHI SUGAR, SARASWATI SUGAR MILLS, SARAYA SUGAR MILLS, SHAMBAHOLI SUGAR MILL, SHREE TATYASAHEB KORE WARANA, SIEL SUGAR, SRI RAM SUGAR MILLS, NEPAL, SUGAR CORPORATION, UGANDA, SUPREME RENEWABLE ENERGY, SYAN SUGAR, TITAWAI SUGAR, ETC<br /> </div>
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<b>Power Plants:</b></div>
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ADAMTILLA, ADHUNIK TPS, ADITYA MAHAN, AMARKANTAK, ANPARA TPS, APGENCO RAMAGUNDAM PS, AZARBIZAN HEP, BAIRA SIUL, BAJAJ HINDUSTAN, BAKRESWAR, BANSAGAR, BARAGRAN, BASKANDI, BHOOPALAPALLY THER.POWER, BHUSAWAL TPS, BUDGE-BUDGE, CHAMERA, CHANDIL, COAL INDIA,DB POWER, DEHARKHAND, DVC- CHANDRAPURA, DVC DURGAPUR, GANGUWAL, GGSR BHATINDA, GIRAL LIGNITE POWER, GNTPS, BHATINDA, GOKAK FALL HYDRO, GUNGWAL & KOTLA, GGS REFINERY(CAPTIVE POWER), HARIDWAGANJTPS, HARINAGAR, IOCL - PANIPAT, JINDAL DERANG, JPL RAIGARH, KALI NADI, KAPHERKHEDA TPS, KHADANA, KHANDONG, KODERMA TPS, KOPILI, KOTLA, KUTTIYADI, MALANA, MATHON TPS, MODIPONE, MUKERIAN, NAJHARI, NTPC ARAVALLI, NTPC BONGAIGAON, NTPC DADRI, NTPC ENNORE, NTPC MAUDA, NTPC NABI NAGAR, NTPC RIHAND, NTPC SIMAHDHRI, NTPC VINDYACHAL, PARAS TPS, PARBATI, PARLI TPS, RAICHUR TPS, RAIPUR POWER N ISPAT, RAJGHAT, RANJIT SAGAR, REL DAHANU, RELIANCE ENERGY, ROURKELA STEEL PLANT, ROURKELA TPS, SANTHALDI TPS, SANTHALDIH TPS, SARAVATI HYDRO ELECTRIC, SARDAR SAROVAR, SATPURA, SHREE SINGAJI, SIKKA TPS, TALA, TAMILNADU STATE ELECTRICITY BOARD, TATA JOJOBERA TPS, UKAI TPS, VASANTHARAO DADA PATIL SSK, VIJAYAWADA THERMAL POWER, VIKAS SSK, ETC<br /> </div>
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<b>Paper Plants/Mills:</b></div>
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ANDHRA PAPER MILL, BINDLAS PAPER MILL, CENTURY PAPER MILL, GRD PAPER, ITC- BHADRACHALAM, K.R. PULP & PAPER, MADHUBATI PAPER MILL, MAGNUM VENTURES,MECANO PAPER, MOHIT PAPER MILL, MUKERIAN, MULTIWAL PULP & PAPER, ORIENT PAPER MILL, RAMA PAPER MILL, RAMA SHYAMA PAPER, SATIA PAPER, STAR PAPER MILL, UNITED PAPER MILL, ETC.</div>
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<b>Miscellaneous:</b></div>
BALMERLAWRIE, BOSCH, DANIELI,DLW, FL SMIDTH, GODREJ, HINDALCO, HONDA MOTOR, HUMBOLT, HV TRANSMISSION, KIRLOSKAR BROTHERS, L&T, KANSBAHAL, L&T POWAI, LEITNER SHRIRAM, MAHINDRA & MAHINDRA, MOHIT PAPER MILL, MARUTI, NUPOWER, PAHARPUR COOLING TOWER, PARADEEP PHOSPHATE, PP ROLLING, PRAJA MECHANICAL, RCF, RENUKA EQUIPMENTS, RIETER, SAMKRG PISTONS, STEEL STRIPS, TOSHIBA MACHINE, VAYUNANDANA,VELJAN, WMI KONECRANES, ETC<br /><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2OFfrtEoFfxrjiPduSW45bfvJbD0BXODjyLhjlevkISsBawCuEi6lhEjGYdIHJrDQgC5PMAFrwrjG_iyI6YzF4fqf46U7bli0SqaVwpFmh2BLDMkLdrU2vOxlApnC3i0bddIWlA/s1600/Cenlube-Chart.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="490" data-original-width="763" height="256" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2OFfrtEoFfxrjiPduSW45bfvJbD0BXODjyLhjlevkISsBawCuEi6lhEjGYdIHJrDQgC5PMAFrwrjG_iyI6YzF4fqf46U7bli0SqaVwpFmh2BLDMkLdrU2vOxlApnC3i0bddIWlA/s400/Cenlube-Chart.png" width="400" /></a></div>
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<b>Exports to Countries:</b> Initially for two decades the company was busy in catering to the Indian market and prior to the inception of the company, basically lubrication units were imported. Having catered efficiently the Indian market, the company started contributing to the world market. Now the company is exporting its products to :- BAHRAIN, DUBAI, ETHIOPIA, FINLAND, GERMANY, HOLLAND, HONDURAS, INDONESIA, IRELAND, ITALY, KENYA, MALAYSIA, NEPAL, PHILIPPINES, SAUDI ARABIA, SHARJAH, SOUTH AFRICA, SRI LANKA, TANJANIA, THAILAND, UGANDA, USA, VIETNAM, ZAMBIA, ETC.<br /><br />
<b>Balance Sheet</b> <br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHQKmzXs99YEXFaCqrqe_eu-k_p7YNDVga4gaVYCjj_EyqoT_YPmyEXv7_rLsCwEA-jm4Q_uBL-77zgbThcP4aiZ2FwbBjFl3GGhBWbIMO1i8isU83NeIeFPuVspHbLM1hw08Tzg/s1600/CenLube-BalanceSheet.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1171" data-original-width="787" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHQKmzXs99YEXFaCqrqe_eu-k_p7YNDVga4gaVYCjj_EyqoT_YPmyEXv7_rLsCwEA-jm4Q_uBL-77zgbThcP4aiZ2FwbBjFl3GGhBWbIMO1i8isU83NeIeFPuVspHbLM1hw08Tzg/s400/CenLube-BalanceSheet.png" width="268" /></a></div>
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<b>Income Statement:</b> <br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjlpZYqVtDrvuqXGmNVL7R8nP0pcUvlhd_L3rQQOsEKjEtCtkXS9i0_w-gNgV5USmqfmCxD5MZBQfgpOXtBXWm1S9ujFPP7Lyd0tbFMMWUljnQFVHC6COy8Q_tI6Ss9FRi8iwGOVg/s1600/CenLube-IncomeStatement.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1225" data-original-width="789" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjlpZYqVtDrvuqXGmNVL7R8nP0pcUvlhd_L3rQQOsEKjEtCtkXS9i0_w-gNgV5USmqfmCxD5MZBQfgpOXtBXWm1S9ujFPP7Lyd0tbFMMWUljnQFVHC6COy8Q_tI6Ss9FRi8iwGOVg/s400/CenLube-IncomeStatement.png" width="257" /></a></div>
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<b>CashFlows: </b><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhej9bVon55YMkC422im62dgaZWfzrscIKQ5xPCNc17n1OQh4yGrGOU5eVKsTjZDZXyzplj1Lp8gbCGvn9t0RXLDH-XjBdSmTWaQpR8rFE1ZGJJYjyxk1RtBhYvngj3xxp4el5dLw/s1600/CenLube-CashFlowStatement.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="382" data-original-width="799" height="190" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhej9bVon55YMkC422im62dgaZWfzrscIKQ5xPCNc17n1OQh4yGrGOU5eVKsTjZDZXyzplj1Lp8gbCGvn9t0RXLDH-XjBdSmTWaQpR8rFE1ZGJJYjyxk1RtBhYvngj3xxp4el5dLw/s400/CenLube-CashFlowStatement.png" width="400" /></a></div>
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Company seems to be very small considering the client base.. so either there are other ways the company management seems to take out benefits .. else the client list is rock solid.. Capital investment for March 2016 is 3.5Cr out of which 3.4Cr is in buildings.. 1Cr invested as advance for flat at Noida and Faridabad, 45 lakhs for a flat in banaglore, so company is moving into the business of property management.. </div>
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March 2015 3.2Cr spent for plot in Faridabad .. wonder where that went in 2016?.. </div>
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Latest announcement 13 July 2017 to BSE indicate that the subsidiaries and associates have been merged with CenLube Industries. ie. MiniHyd Hydraulics Limited & Ganpati Handtex Pvt limited. If you look at the consolidated data subsidiaries will add additional debt burden to CenLube and zero topline.. which is negative but consolidation of nonlisted associates and subsidiaries should result in increase in promoter shareholding.. and hopefully better disclosures and higher EPS in the future..</div>
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<span style="color: red;"><b>Conclusion: </b>Cenlube Industries and many similar small/microcap companies which are market leaders are feeling the pressure of Modi-nomics. better income disclosure, tightening of loans by basel-III also is reducing the possibility of nonlisted entities from getting credit.. if you dont have sufficient income it will be difficult to get credit lines from banks.. I expect Cenlube to start reporting "realistic numbers" which should translate to higher topline and bottomline and higher stock prices.. Since the merger of associates and subsidiaries is after July we will have to wait for September shareholding data to see how much the promoter shareholding has increased...over past 5 yrs promoter shareholding has increased by 2% I would recommend "BUY Now" as company is undiscovered and still very attractively priced..7-8Cr cash in hand 23.8Cr market cap..its attractively priced.. and actual sales numbers and profits should improve in the future.</span></div>
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</script>What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com8tag:blogger.com,1999:blog-14410328.post-4897780411186186982017-06-29T17:34:00.001+05:302017-07-17T01:58:20.333+05:30Bemco Hydraulic: Hidden GemBEMCO Hydraulic <br />
CMP:185.6<br />
Market Cap: 40.59Cr<br />
Year Ended March 2017<br />
Sales: 42.53Cr<br />
Net Profit: 3.62Cr (includes: 2.82Cr Exceptional item)<br />
<a href="http://www.bemcohydraulics.net/">http://www.bemcohydraulics.net/</a><br />
<a href="http://www.fluidik.co/">http://www.fluidik.co/</a><br />
<a href="http://www.bemcohytech.in/">http://www.bemcohytech.in/</a><br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgF4MYTE2fCpSNb89toqcIv_9_w8QsKk3eSh_pKlf_o-xNyJ8Pw2CAtcK8UxEP2ejOqzDili5ew5ssbX3LU9qe6hzOd7AgQAQuaWflw5Xq48MAGvueMms3DZTCs51CtDATwSkU-5g/s1600/Bemco-Logo.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="177" data-original-width="651" height="87" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgF4MYTE2fCpSNb89toqcIv_9_w8QsKk3eSh_pKlf_o-xNyJ8Pw2CAtcK8UxEP2ejOqzDili5ew5ssbX3LU9qe6hzOd7AgQAQuaWflw5Xq48MAGvueMms3DZTCs51CtDATwSkU-5g/s320/Bemco-Logo.png" width="320" /></a></div>
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Bemco Hydraulic was incorporated in 1957. It is now a premier producer of Hydraulic press equipments.</div>
BEMCO, originally an Engineering Craftsman's shop in the late thirties has risen to be a premier manufactures of Portable re-railing equipment, Light weight re-railing equipment, Hydraulic Re-railing equipments, Re-railing Systems, Hydraulic press, Wheel fitting press, Straightening press. Our Portable Rerailing Equipment is designed for re-railing cars and locomotives. The light weight of the rerailing equipment makes it a useful tool in solving re-railing problems safely.<br />
BEMCO now has a well planned and adequately equipped manufacturing setup where every infrastructure is available to design, develop and produce a mega range of Hydraulic press and Light weight Portable re-railing Equipments.BEMCO, by collaborating with Vogel of Germany and Towler Brothers of U.K manufactured the first ever indigenously produced Hydraulic press.<br />
<a href="http://www.bemcohydraulics.net/images/stories/pdf_doc/Rerailing%20and%20Rescue.pdf"> Re-railing and rescue Equipment catalogue</a><br />
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BEMCO major clients are:<br />
1. Indian Railways, 2. BHEL, 3. BEML, 4. ESCORTS, 5. NFC(Nuclear Fuel Complex), 6. BARC(Bhabha Atomic Research Center), 7. HMT, 8.Ministry of Defense, 9. Kirloskar, 10.FORCE Motors, 11.Siemens, 12.ABB, 13.AMCO, 14.Ashok Leyland, 15.BFW(Bharat Fritz Werner), 16. L&T, 17.CA, 18.Denso, 19.Eicher, 20.FAG, 21.TIMKEN, 22.GRSE, 23. Hero Group, 24.HCL, 25.Honda, 26.Indo Nippon Electricals, 27.Atlas Cycles, 28. Jai Parabolic Springs, 29.Kalyani Group, 30. Lemken, 31. KEC International, 32.Whirlpool, 33. KSB, 34.Lucas TVS, 35. Brakes India, 36. Avon cycles, 37. Mahindra, 38. MICO, 39.NBC Bearings, 40. New Holland, 41.NRB Bearings, 42. Indian Ordinance Factories, 43.Panasonic, 44.Piaggio, 45.Rane (Madras), 46.Rane, 47.RSB Group, 48. Salem Steel, 49.Sintex industries, 50.Sona Steerings, 51.SRF, 52.SUNFAB, 53.Sundram Fastner, 54.Suzuki, 55.TELCO, 56.TAFF, 57.Toyota, 58.TTK Prestige, 59.TVS, 60.Vespa, 61. Vikram Sarabhai Space Center, 62.Voltas, 63.Bharat Forge, 64.Wheels India, 65.ZF India.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi55NItNtmaoIY5s2IA10h-o99WFC_yLbMPIzEYiuJHUWnX6i6TDME3vpGVB7xt57fHm3kVQV2Ccij4H_0v9nfw3dDqp-rLNLpLTagYuxdRZwSLNy7BnyItMd7kLgqr7wequCDWMg/s1600/Bemco-Financials.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1600" data-original-width="616" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi55NItNtmaoIY5s2IA10h-o99WFC_yLbMPIzEYiuJHUWnX6i6TDME3vpGVB7xt57fHm3kVQV2Ccij4H_0v9nfw3dDqp-rLNLpLTagYuxdRZwSLNy7BnyItMd7kLgqr7wequCDWMg/s400/Bemco-Financials.png" width="153" /></a></div>
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Bemco Total Issued Equity Capital: 5.39Cr out of which Equity Capital: 2.19Cr, Preferential Equity:3.20Cr<br />
Bemco Hydraulics has Preferential capital which is being given 11% interest..<br />
March 2013 Equity Capital: 1.45Cr, Preferential Capital:3.38Cr<br />
March 2014 Equity Capital: 1.79Cr, Preferential Capital:3.20Cr<br />
March 2016 Equity Capital: 2.19Cr, Preferential Capital:3.20Cr<br />
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the Equity capital is increasing while the Preferential capital is reducing.. which is an indication of better days for equity shareholders.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCjNI0GhS01FGIFbtKE67AvgRioFpdGm1Gq6mEm1t6dIx4DRLoP8I_l7Ug4UuQ2mPcyqHQB0dM6_p-D4VQ68alM2h6ta5GOF3VUhr1xDZXQzFvza1NZpAPUw_70eeoWbTeJWUwFA/s1600/bemco-march-2017-IncomeStatement.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1034" data-original-width="1071" height="308" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjCjNI0GhS01FGIFbtKE67AvgRioFpdGm1Gq6mEm1t6dIx4DRLoP8I_l7Ug4UuQ2mPcyqHQB0dM6_p-D4VQ68alM2h6ta5GOF3VUhr1xDZXQzFvza1NZpAPUw_70eeoWbTeJWUwFA/s320/bemco-march-2017-IncomeStatement.png" width="320" /></a></div>
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Latest Year ending March 2017 Results. <br />
Stand alone profits have an exceptional item 2.8Cr which is writeback of "Deferred Payment Liabilities"<br />
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Also if you see the Reserves<br />
March 2016: -87.27Lakhs<br />
March 2017: +ve3789.92Lakhs (37.89Cr)<br />
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Property Plant and Equipment:<br />
March 2016: 697.52 lakhs (6.9Cr)<br />
March 2017: 4212.35lakhs (42.12Cr)<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgbASRsOrqih0FpQGAyfBHmHLgGVQEF1u4KPfIx0dAsAyMVA4bqtqsSSIZDD8z8NkjigQ5NH6sjZg1GEWfQzo4d1rZihNBy75a9pgXQXv1F2N7rD11wvX7WXvE2gAGGnMAhi156Dg/s1600/bemco-march-2017-balanceSheet.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1429" data-original-width="991" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgbASRsOrqih0FpQGAyfBHmHLgGVQEF1u4KPfIx0dAsAyMVA4bqtqsSSIZDD8z8NkjigQ5NH6sjZg1GEWfQzo4d1rZihNBy75a9pgXQXv1F2N7rD11wvX7WXvE2gAGGnMAhi156Dg/s400/bemco-march-2017-balanceSheet.png" width="276" /></a></div>
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So looks like the books are being cleaned/strengthened.. so that the company has respectable assets and earnings, liabilities (preferential capital) is being reduced.. I would say its all due to BASEL-III guidelines..<br />
Companies can no longer get access to capital if they do not have a strong balance sheet or income/profits.<br />
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Also with AADHAR being linked with PAN .. fictitious PAN/individual investors on paper is a thing of the past..shareholders have to be identified.. and hence stock prices will reflect true value..<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiV_FwUcj6k7nOBrbr7vi5B8n_0y34NE8K1LiAFiLtXB1bJL017LZoM_IC-bLqu6FAD3N4RiSr0qzCoLwh1AGf0YPBJsyOj5RuYL1l8W1Xe9VBIobOeAYXBGM_otpKfPXTvGBHItg/s1600/Bemco-Chart.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="496" data-original-width="760" height="260" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiV_FwUcj6k7nOBrbr7vi5B8n_0y34NE8K1LiAFiLtXB1bJL017LZoM_IC-bLqu6FAD3N4RiSr0qzCoLwh1AGf0YPBJsyOj5RuYL1l8W1Xe9VBIobOeAYXBGM_otpKfPXTvGBHItg/s400/Bemco-Chart.png" width="400" /></a></div>
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CMP:185.6 <br />
Market Cap:40.59Cr<br />
March 2017 Total Shareholder funds: 43.29Cr<br />
which means Book Value is higher than CMP..??? EPS with exceptional income @ 16.99<br />
giving a PE of 11, Book Value of 197.6<br />
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Another interesting observation is demat shares<br />
Public shareholding: 5,53,430 share out of which only 3,52,700 shares are in demat form (63% available for trading) ie Free float is: 3,52,700 x 185.6 = 6.5Cr<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0G6uQcngUn2VA4ywF-bky8MORmPWe9S7eAGcHEBlucn_5TMeYujgyzEkiGHLKZrsWeIyJwNWmNsS_Uxo-vaahd9tKEtDEkXXI89MFHtWIYBVEFRB8q2T27dn96ucVlW8Y-VfgPw/s1600/Bemco-shareholding.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="625" data-original-width="1044" height="238" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0G6uQcngUn2VA4ywF-bky8MORmPWe9S7eAGcHEBlucn_5TMeYujgyzEkiGHLKZrsWeIyJwNWmNsS_Uxo-vaahd9tKEtDEkXXI89MFHtWIYBVEFRB8q2T27dn96ucVlW8Y-VfgPw/s400/Bemco-shareholding.png" width="400" /></a></div>
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If you look at the detailed public shareholding.. actual demat shares with public (shareholders with shareholding less than 2 lakh (20,000 shares)) is just 82,659 shares ie 82.659 x 185.6 = 1.53Cr Free Float<br />
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<span style="color: red;">Conclusion: Bemco Hydraulic is a well established name in its line of business.. Hydraulics is required in heavy industry as well as in Shopfloor automation.(robotics). company has also started manufacturing low power consumption hydraulic systems which would be used in automation activites in the industry. With make in India and involvement in Railway, space, defence and heavy industry I expect topline to improve. Management is also converting its preferential capital into Equity which means management expects equity to do well in the future... its a good long term buy.. Hidden Gem. </span><br />
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</script>What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com6tag:blogger.com,1999:blog-14410328.post-88875118114283356992017-06-16T04:18:00.000+05:302017-06-16T04:18:02.905+05:30Manugraph India: RevisitedManugraph India was recommended in Sept 9,2010 @ 50.10 Market Cap: 152.84Cr<br />
Today Sept 15,2017 Manugraph CMP is: 50.05 Mcap 152.15Cr.<br />
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Manugraph is still struggling to report profits and recently reported that its American subsidiary "Manugraph Americas" has filed for bankruptcy protection. There is also report of Workers going on Strike..<br />
Is there something we are missing out here??..<br />
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All those who have followed manugraph India know that its the market leader in India with about 70% market share as well as it has developed new presses with double width and speeds upto 70,000 cph(copies per hour) after purchasing DGM, Manugraph has incorporated new technologies and started manufacturing high speed presses of 60,000 to 70,000cph. Manugraph also has the distiction of always paying dividends to shareholders even when it was reporting losses..<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtHuUyYq2q6MPJIu2t-cprD5SMkywiDlELkyAR0axRCEqGES8x5uveMDaDztX9w6vtbRFSxnlEQPAOSxkMY8oHx6YWp392hdWyhvO_sK6-aBNTaLYbvjujKKQSCrGQdHGgtAfuUw/s1600/manugraph-cph.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1600" data-original-width="525" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtHuUyYq2q6MPJIu2t-cprD5SMkywiDlELkyAR0axRCEqGES8x5uveMDaDztX9w6vtbRFSxnlEQPAOSxkMY8oHx6YWp392hdWyhvO_sK6-aBNTaLYbvjujKKQSCrGQdHGgtAfuUw/s400/manugraph-cph.png" width="130" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSIfgAacTswRV8e-q8kA2EStDZ_MhN_lEI7zBiv5099W9CDItrn9mT6k72r0Sy2_EIalLSL6TOkd5Otfta8ihR1UZHMJXk6oLCi997WsU_8ZDll8IeligYZ7S9U9mYUd_713AcnQ/s1600/Manugraph-PrintPack.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="970" data-original-width="675" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjSIfgAacTswRV8e-q8kA2EStDZ_MhN_lEI7zBiv5099W9CDItrn9mT6k72r0Sy2_EIalLSL6TOkd5Otfta8ihR1UZHMJXk6oLCi997WsU_8ZDll8IeligYZ7S9U9mYUd_713AcnQ/s400/Manugraph-PrintPack.png" width="278" /></a></div>
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So maybe stock price wise... the stock looks like its going nowhere, Manugraph the company is live and kicking.. what caught my eye (and the reason for suggesting a buy is the shareholding pattern for Manugraph.)<br />
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March 2016 Largest Public shareholder is : Reliance Mid-Cap Small Cap Fund: 17,09,978 shares.<br />
Total public shareholders in March 2016: 12,369 shareholders<br />
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One year later: March 2017: Largest Public shareholder (Reliance Mid-Cap Small-Cap fund) is no longer a shareholder in manugraph but the Total Public shareholders in March 2017: 12,243 shareholders<br />
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So even as the largest shareholder has sold manugraph shares (17 lakh shares)... Number of public shareholders has decreased by 12369-12243 = 126 shareholders.<br />
Ideally when large shareholders dump shares in the market.. the shares should be distributed across number of small shareholders increasing the no of shareholders for manugraph..... but Surprise Surprise<br />
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So not only has the 17,09,978 shares been accumulated by strong hands.. It seems the strong hands have accumulated shares from the open market from other small shareholders<br />
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HNI(High Networth Investors) holding more than 2 lakh face value shares(1 lakh shares as manugraph is Rs 2 face value shares):<br />
March 2016: No of shareholders: 6, No of shares:11,57,701 shares, Percentage: 3.81%<br />
March 2017: No of shareholders: 9, No of shares: 19,85,969 shares, Percentage:6.53%<br />
3 people have added: 19,85,969 - 11,57,701 = 8,28,268 shares (@ 50 worth 4.14Cr)<br />
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No of small shareholders (holding less than 2 lakh face value shares):<br />
March 2016: No of Shareholders:11,574, No of shares:69,09,845 shares, Percentage: 22.72%<br />
March 2017: No of shareholders: 11,411, No of shares:70,32,023 shares, Percentage: 23.12%<br />
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Even in small shareholder category..as the no of shares has increased by 1,22,178 shares, number of shareholders has reduced by 163 shareholders (11,574-11,411=163) there is consolidation at all levels..<br />
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So from what I see Big money is accumulating Manugraph shares..<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYl3MPFWiTOE5H5-mi-LpsOCjGqpVHy0WHotQivb5lDRqIfI3Gq0TawFW7U2F1gRd6BJ1dJou3-v_TQeFELftjcMARV4PAaN82MwjZZBgNlZMmT-k8rAT8DlKbJE_BKF5LJLrflw/s1600/Manugrapg-MArch-2016.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1559" data-original-width="1059" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhYl3MPFWiTOE5H5-mi-LpsOCjGqpVHy0WHotQivb5lDRqIfI3Gq0TawFW7U2F1gRd6BJ1dJou3-v_TQeFELftjcMARV4PAaN82MwjZZBgNlZMmT-k8rAT8DlKbJE_BKF5LJLrflw/s400/Manugrapg-MArch-2016.png" width="271" /></a></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-BO26UFKq3ImXTVADSQZDOs2ICteHnNNcYnvCiulARbWjJbHECeoPOqB57ucKH_07vGLbrGMJpVRTvU2hIebBuWCP8VnnrF_RdkSgT3iMZv8KQvA9OfOc3wXzrIvw4Io6RVKCeA/s1600/Manugraph-March-2017.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="1383" data-original-width="1083" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj-BO26UFKq3ImXTVADSQZDOs2ICteHnNNcYnvCiulARbWjJbHECeoPOqB57ucKH_07vGLbrGMJpVRTvU2hIebBuWCP8VnnrF_RdkSgT3iMZv8KQvA9OfOc3wXzrIvw4Io6RVKCeA/s400/Manugraph-March-2017.png" width="312" /></a></div>
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If you look at the charts.. manugraph has just turned bullish after 8 long years..<br />
200Day EMA (Exponential Moving Average) has moved Above 999 Day EMA (kind of Extra Long Golden Cross) [Golden Cross is when 50Day EMA moves above 200Day EMA] <br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhs_fTnHz6l9TlDkmDXBARK1fhhBNq6JwipLGlpEdtYmX9uo1QFgUSOyd1JEJcWEPZXECC6-ndQ4RHMUdTeuqAHLawzsC2JZp6gYUuqnecHj_xUkQGrdAfXEf1kdwtN8JuY1bPHkw/s1600/Manugraph-Chart-2017.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="507" data-original-width="793" height="255" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhs_fTnHz6l9TlDkmDXBARK1fhhBNq6JwipLGlpEdtYmX9uo1QFgUSOyd1JEJcWEPZXECC6-ndQ4RHMUdTeuqAHLawzsC2JZp6gYUuqnecHj_xUkQGrdAfXEf1kdwtN8JuY1bPHkw/s400/Manugraph-Chart-2017.png" width="400" /></a></div>
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<b><span style="color: red;">Conclusion: On the face of it Manugraph seems to be still in doldrums.. with losses being reported and with Manugraph Americas filing for bankruptcy.. and Workers going on a strike..</span></b><br />
<b><span style="color: red;"><br /></span></b>
<b><span style="color: red;">But looking at the shareholder data.. there are some big investors who have accumulated Manugraph shares and technically also the share seems to be growing stronger every day..</span></b><br />
<b><span style="color: red;"><br /></span></b>
<b><span style="color: red;">We as investors have to decide what does our conviction say? I would personally say Buy!!</span></b><br />
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<b><span style="color: blue;">PN: This is not a recommendation service.. I maintain this blog to review my own thought process and investment logic... Please do your own deep dive before investing</span></b><br />
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Rasandik Engineering India Limited.<br />
<a href="http://www.rasandik.com/home.htm">http://www.rasandik.com/home.htm</a><br />
CMP:65.80<br />
Market Cap: 31.09Cr<br />
Equity:47.3 Lakh Shares. 4.73Cr (Face Value:10/-) <br />
Sales (March 2016): 214.55Cr<br />
Net Profit: 1.14Cr<br />
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Rasandik established in 1986 as manufacturers of Fuel Tanks & Sheet Metal Components has been pioneering new frontiers in Tailor Welded Blanks(TWB), Engineering Solutions, Tooling and Product Design. The use of high level of automation, robotics, softwares like Catia, Unigraphics, Hyperform and Rasandik’s passion for innovation and latest technology have triggered a chain reaction catapulting it to its ‘pioneering market leader’ status today. Company caters to the following Product Sectors:<br />
- Sheet Metal components for Cars, Trucks, Tractors, Two Wheelers<br />
- Three Wheelers,<br />
- Die and Tools,<br />
- TWB (Tailored Welding Blanks)<br />
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Rasandik Engineering Industries India Limited (Rasandik) is engaged in the manufacture of sheet metal components for automobiles. The company offers tailor welded blanks, body-in-white parts and subassemblies, tools and dies, suspension parts and sub-assemblies, fuel tanks, exhaust line and CNC bending products, and scissor jacks. It also provides white goods, such as air-conditioner body stampings and assemblies, refrigerator body stampings, and washing machine body stampings. In addition, the company offers engineering solutions in the areas of hyperform draw analysis, tractor body parts, point cloud data, surface model, and MUV wire frame.</div>
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TWB’s is a technology that is futuristic & helps OEM’s manufacture light weight and cost effective vehicles. We provide a single point responsibility from product design to product delivery. Rasandik is rapidly moving up the value addition chain and becoming an integrated component manufacturer.</div>
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Customer List: <br />
Cars/SUV/MUV: Maruti, Honda, General Motors, Tata, Mahindra, Renault-Nissan, FIAT,Hindustan Motors.<br />
Motor Cycle: TVS, Honda Motor Cycles<br />
LCV,HCV: Swaraj Mazda,AMW, Force Motors, Ashok Leyland, <br />
Tractors: NewHolland, Mahindra Swaraj, Renault Agriculture, CLAAS.<br />
WhiteGoods: LG<br />
Press Tools & Dies: Maruti Suzuki, Tata, General Motors, Gindustan Motors, Hero Motor Corp, Honda Motorcycles, TVS.<br />
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Rasandik Engineering was started by Shri. Rajeev Kapoor (IIT-Delhi 1977 batch) worked with F.L.Smidth & Company, Denmark and subsequently started Rasandik Engineering in 1986. .<br />
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Our Mission for 2015 - 16... to build capabilities for Aluminum &
Titanium, metal working for Aerospace Sector, Stainless Steel and
Special Steels heavy fabrication. Feasibility study to build
capabilities for GI & SGI castings. To achieve this, my message to
the Rasandik team is to continue providing quality as a way of life and
inculcate an attitude of ‘Do it right the first time and every time’.<br />
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Our Vision 2020... to Build Capabilities for Design to manufacture of
components and aggregates for to Build for Design to manufacture of
components and aggregates for Automotive Sector, Aerospace Industry and
to carry out Heavy Fabrication.<br />
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Rasandik Engineering had taken a 10 Million USD 3% (45.79Cr) Foreign Currency Convertible Bonds which matured in April 2009 company has paid 80% of the bonds and 2 million worth (9.158Cr) are unpaid Company has stated that its been provided for in their books. So it could be a case of identity of bond holder or other issue not in control of the company.<br />
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Rasandik is reporting losses and does have 117Cr worth of borrowings. and Capital expenditure is also consistently close to 35Cr every year which is quite high for a 225Cr sales company.Could be due to vision of entering into Aluminium/Titanium Welding space and entry into aerospace/defense engineering or the fact that technology is the differentiating factor in the auto component space to survive.<br />
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<span style="color: red;">Conclusion: With forcasted lower interest rate regime(I expect the rates to be low going forward for a long time - new trend) companies which have debt in their books and who are well established should be able to take advantage of the lower rates. Already Automobile companies are reporting higher sales number. All said and done @ 30Cr market cap..low equity base.. I'm expecting the management to turnaround the company.Good value buy for the long term investor.</span><br />
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Let us start with a review of performance of stocks recommended in this blog.<br />
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Its been around 7 years since the blog was started.. A total of 30 stocks have been suggested as good investment ideas.10,000 invested in each of the 30 stocks ie 3,00,000/- lakh invested over the 7 years would have been worth 9,64,764.70 (Including dividends) would have given a return of 38.64% per year.<br />
without including dividends the return would have been 36.41%<br />
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This is hypothetical case, because there have been rights issued and I have assumed that rights shares have been bought. Also the total invested days is 2093 days as the stocks were introduced over the period of 7 yrs (2 of them in 2016)<br />
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The Recommended Best Buy stocks have turned around in 2016-17 Last year the Best Buy stocks had a 6 yrs absolute return of 50.51% and this year 7 yrs absolute return is 271.67% an increase of 220% in one year..<br />
In past 1 year <br />
GAEL has increased from 45.20 to 95.4<br />
Jayant Agro has increased from 109.90 to 551.40<br />
NHPC has increased from 17.70 to 26.90<br />
Tata Comm has increased from 431.30 to 634.55<br />
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The point being made is its very difficult to know when the stock becomes active and starts to be valued by investors increasing demand and increasing stock price. I also feel management suppport is important and management is in a position to project the right image to investors..<br />
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The question is.. is there still value left in these recommended businesses? The answer is yes!! These companies will still continue to perform well and with passage of time the value of their business will grow..<br />
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One of the most important things about a business/company is its ability to pay taxes after all expenses are considered. An individual gets a salary.. which is first taxed .. and then we pay for our expenses and finally we save the remaining income.<br />
For example <br />
A company earning 1000 having 500 as expenses paying 30% tax has following savings<br />
1000 - 500 = 500 which is then Taxed @ 30% (150/-)<br />
Savings : 1000-500-150 = 350.00<br />
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An Individual earning 1000 and having 500 as expenses and paying 30% tax has following savings<br />
1000 income is Taxed @ 30% ( 300/- ) & 500 Expense,<br />
Savings = 1000-300-500 = 200.00<br />
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As you can see All things equal.. Individual saves 200/- while corporate saves 350/- A corporation can save 75% more than an individual just because in case of corporates you pay taxes after all expenses are paid.. while in case of an individual you pay taxes before your expenses are paid. (BIG Difference!!)<br />
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So one of the important functions of a corporation is the tax benefit and hence corporates have an incentive to invest and grow. Over a period of time the effect of compounding increases the wealth of corporates. Management is always an important factor as they can make or break a corporation.<br />
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<b>Outlook:</b> BASEL-III implementation is just being rolled out.. so banks are going to have a tough time growing their books. due to lower leverage than normal.(due to basel -III restrictions) . what is the need of the hour is "excessive printing of paper currencies" and all the central bankers are busy doing it..<br />
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Excessive printing is required to replace the lower leverage in the balance sheet of the banks.. now the Goverment balance sheets are expanding... and till the bank leverage stays low we are all good.. the problem will be when the banks return to their old ways and leverage their books.. that is when the problem will start.<br />
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India is one of the few countries where the level of leverage in the system is very low. A large portion of the Indian population is still unbanked.. NBFC with no basel-III restrictions can really eat the cake of the banking industry.. and a NBFC owned by a bank would be able to somehow have the best of both worlds..<br />
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</script>What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com0tag:blogger.com,1999:blog-14410328.post-60409577423724612922016-10-06T00:15:00.000+05:302016-10-06T00:15:50.649+05:30Tata Power: Hidden Asset: Strategic Engineering DivisionTata Power:<br />
CMP: 78.20<br />
Market Cap:21,150Cr, Free Float: 14,170Cr<br />
Annual March 2016<br />
Sales: 36,700Cr,<br />
PBDIT: 8070.13Cr<br />
Net Profit: 873Cr<br />
<a href="http://www.bseindia.com/bseplus/AnnualReport/500400/5004000316.pdf">Annual Report March 2016</a><br />
Power is a controlled commodity as its one of the basic necessities of modern life. Govt of India regulations exist such that power companies whether its Coal, Nuclear, Hydro, Solar, Wind, are entitled to a fixed return on their capital which is around 16%. This results in Power companies leveraging their balance sheet so that during the initial growing years (new capacity addition) the company earnings are always under pressure from the debt repayment as well as depreciation.<br />
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Electricity pricing is a very politically sensitive subject and profits of any power company will be questioned for electoral gains.. so please consider this before considering Tata power as an investment destination.<br />
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But then what makes Tata Power attractive is its subsidiary " Tata Power Strategic Engineering Division"<br />
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<a href="http://www.tatapowersed.in/">http://www.tatapowersed.in/</a><br />
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Centre for Excellence in Strategic Electronics<br />For close to four decades, The Tata Power Company Limited through its Strategic Engineering Division (Tata Power SED) has been a leading private-sector player in the indigenous Design, Development, Production, Integration, Supply and Life-cycle Support of mission critical Defence Systems of Strategic importance. During this period, the Division has partnered the Ministry of Defence (MoD), the Armed Forces, DPSUs and DRDO in the development & supply of state-of-the-art Systems and emerged as a Prime Contractor to MoD for Indigenous Defence Production when it secured Orders for Pinaka Multi Barrel Rocket Launcher, Akash Army Launcher and Integrated EW System for the Indian Army and for the Akash Air Force Launcher, COTS-based Automatic Data Handling System for Air Defence and Modernisation of Airfield Infrastructure (MAFI) for the Indian Air Force.<br /><br />Tata Power SED has the unique distinction of participating in Defence Programs through a dedicated R&D Centre at Mumbai and a Production facility along with an R&D Facility at Bengaluru. As a leading domestic player in Strategic Engineering, the Division is now globally recognised for harnessing its “Systems and Engineering” capabilities and has been appraised at Maturity Level 5 of CMMI® for Development v1.3.<br /><br />Success in modern war depends on Integrated operations over distributed geographies using Sensors and Weapons of varying vintage. Tata Power SED's team has the right blend of technological and operational experience in integrating these heterogeneous systems, using both industry standard and system specific interfaces and protocols.<br /><br />In recognition of its pioneering capabilities in Design, Development, Manufacturing and System Integration, Tata Power SED was nominated by MoD as a Major Work Centre for the Samyukta Electronic Warfare Program under the aegis of DRDO. Tata Power SED has also received several national awards from industry associations such as the Federation of the Indian Chamber of Commerce and Industry (FICCI), the Confederation of Indian Industry (CII) and the Ministry of Science and Technology.<br />
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The Government of India, Ministry of Defence awarded Tata Power SED in 2006, seven Defence Production Licenses, thereby empowering the Division to design, develop, manufacture, assemble and upgrade mission critical systems in seven core areas of Defence Strategic Electronics.<br /><br />These Production Licenses open a vast domestic addressable market, which include upgrades of existing Weapon systems and platforms. Additionally, business opportunities through ‘Offsets’ for Systems Design, Engineering and Testing Services will also be targeted by the Division, thus opening up the export market.<br /><br />The seven Defence Production Licenses received are:<br />1. Electronic Warfare Systems (Stand-alone & integrated) for Army, Navy, Air Force, Para-military and Inland Security, <br />2. State-of-the-art Network-Centric Warfare Enablers, including Tactical and Strategic Communication systems GPS-based Navigation & Tracking and GIS systems.<br />3. Avionics, Airborne assemblies, Systems and Equipment for Aircrafts, Helicopters & AWACS including development of UAVs (Unmanned Aerial Vehicles) and UVs (Unmanned Vehicles) of all types.<br />4. Air Defence / Naval guns, Field Artillery, Tanks, Combat Vehicles, Anti-Tank Weapons systems, Mortar, Shell, missiles, rockets etc., and any associated systems.<br />5. Naval Combat, Air Defence, Artillery, Command & Control Systems, Border Security and Surveillance, including sensors such as Radars, Sonar, Thermal Imaging, Radiography, Optronics and Night Vision sub-systems.<br />6. MIL (Military Grade) products such as Display Consoles, Rugged Computers, Workstations Servers, On-board Computers, GPS Receivers, Printers, Documents / Bio-metric Security Systems etc.<br />7. Weapon Systems – Rocket and Missile Launchers, for Ground and Naval applications including associated systems and sub-systems, including inertial and GPS based navigation and tracking systems.<br />================<br /> The Tata Power Company Limited through its Strategic Engineering Division (Tata Power SED) has consistently harnessed cutting edge technology to fulfill its deep rooted commitment to the Nation.<br /><br />In 1975, Tata Power SED, originally known as the R&D Division of Tata Electric Companies (TEC R&D), started its foray into the development of systems for Indian Defence. It developed and supplied systems for the Air Defence Ground Equipment System (ADGES) built by Tata Institute of Fundamental Research (TIFR). The systems covered Radar PPI displays & Random Scan Displays (with synthetic graphics and text display facility).<br /><br />Since the mid 80s, Tata Power SED also made a significant contribution to the Integrated Guided Missile Development initiatives of Dr. APJ Abdul Kalam and has to its credit, the development and supply of AKASH Launchers (Army and Air Force versions), Missile Interface Units for AGNI Launcher, On-board Computers and Launcher Electrical Systems for PRITHVI Launcher and a host of other Ground Electronics support systems.<br /><br />Tata Power SED has now evolved into a Systems Integrator for programs of national importance such as the Pinaka MBRL System, Launchers for the <a href="https://en.wikipedia.org/wiki/Akash_(missile)">Akash </a>Air Force and Army Programs, Electronic Warfare Program, Command & Control Systems for Air Defence and Naval Combat.<br /><br />With its sound knowledge of interfacing and integrating Weapon Systems, coupled with its capabilities in the area of Mission Critical Software, Data Fusion, Communications and Large System Integration, Tata Power SED has the multi-disciplinary resources necessary to take the decade old partnership with the Armed Forces into a new dimension in the era of Digital Wars.<br />
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Interesting news Item: Tata Power SED to make 16 Akash surface to Air Missile Launchers for 36 Million USD .. it goes on to say that Total order over the next 20 yrs is 3000 Akash Missile launchers for Army and Airforce. (March 2009 News Item)<br />
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<h3>
Capabilities:</h3>
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Weapon Systems and their Upgradation for Ground Forces<br />=>Pinaka Multi Barrel Rocket Launcher<br />=>Akash Army and Air Force Missile Launchers<br />=>Medium Range Surface to Air Missile Launcher<br />=>TCT A5 Launcher<br />=>105mm Mounted Gun System<br />=>Upgrade of Air Defence Guns with EO Sights and on board Ballistic Computers<br />=>Launchers with Integrated sensors for All Types of Missiles and Rockets<br />=>Fire Control Computer for Tanks and ICVs<br />=>155/52mm Mounted Gun System<br />=>155/52mm Self Propelled Gun (Tracked)<br />=>Remote Weapon Station<br />=>Pragati Mobile Launcher System<br /><br />Upgradation of Tanks, Armoured Vehicles and related Equipment<br />=>Advanced Hull Electrical Systems for Armoured Vehicles<br />=>Thermal Imager Fire Control Systems<br /><br />Ballistics and Data Fusion<br />=>Ballistic Software for Air Defence Guns<br />=>Ballistic Software for Field Artillery Weapon Systems<br />=>Ballistic Software for T-90 tank (Indian and Russian Projectiles including Tank fired Missiles)<br />=>Data Fusion<br /><br />Aerial Reconnaissance Equipment, Airborne Radio Transmitters / Receivers, Radars and Navigation Equipment<br />=>Reconnaissance payloads for UAV<br />=>Operational Data Link<br />=>Navigation Equipment including GPS and INS<br />=>Medium Altitude Long Endurance UAV<br />=>PTA - Digital version<br /><br />Air Defence Data Handling Systems including Ground Radar and Equipment including Air Defence Control & Reporting System<br />=>Air Defence Artillery Control & Reporting System<br />=>Radar Interface Devices<br />=>Mobile Command Post for Command & Control for Air Defence Artillery<br /><br />Computer-based Trainers, Simulators and other Training Equipment<br />=>Air Traffic Control Training Simulator<br />=>Operator Training Simulator for Pinaka MBRL System<br /><br />Ruggedised Computers and Peripheral Equipment<br />=>Tactical Field Computer (TFC)<br />=>RUGBY - Rugged computers<br />=>Fire Control Computer (FCC)<br />=>Dual-Redundant Rugged Computer<br />=>Tactical Consoles<br />=>Rugged Workstations on Mobile Platforms<br /><br />Network Centric Warfare Enablers, Tactical/Secure Communication Systems including Network & Spectrum Management Systems, Electronic Warfare and Power Supplies<br />=>Systems for Tactical Communications and Network Centric Operations<br />=>Spectrum / Network Management System<br />=>Signal Command and Control System<br />=>Operational Data link<br />=>Tactical Radio with Mobile ad-hoc technology (Adaptive SDR)<br />=>DC-DC Converters and Ruggedised Power Supplies<br />=>Intracom for Electronic Warfare Systems<br />=>Tactical Rugged Router<br />=>Rugged Multimedia Communication Systems<br />=>Integrated Packet Voice Communication System (IPVCS)<br />=>Indigenous Security based Messaging and Networking Solutions (ISMNS)<br />=>Evolved Packet System (EPS)<br />=>Sectorial Antenna System with Amplifiers<br />=>Multi-service Tactical Access Switch<br /><br />Vehicle Equipment and Trailers<br />=>EMI / EMC and EMP Hardened Mobile Command and Control Posts<br />=>Payload retraction and hoist system<br />=>Hydraulic / Electrical / Electro-mechanical Outrigger Assemblies<br /><br />Electronic Warfare Systems and Related Equipment<br />=>Integrated Electronic Warfare System for Mountainous Terrain<br />=>Low Power Jammer systems<br />=>Low Intensity Conflict EW Systems<br />=>Heliborne EW Systems<br />=>Aerostat Based COMINT Systems<br />=>Spectrum Monitoring and DF for IAF<br />=>Command & Control Software for Com and Non Com EW Systems<br />=>Countermeasures Control Centre Software<br />=>Voice / Tone Recognition and Keyword Spotting System<br />=>Antenna Retraction and Servo System<br />=>Ruggedised Work Stations and Consoles for EW Entities<br />=>Entity Engineering on various platforms including Tracked vehicles and HMVs<br />=>Synchronized Direction Finders and location fixing<br />=>Intra Com for EW Systems<br />=>Indigenous GIS and High Speed Light Weight GIS<br />=>Passive Interception and decoding of GSM (Encryption type 5.1 and 5.2) and CDMA<br />=>Migration from Solaris based systems to Linux / Windows based client - Server systems<br />=>Voice Recognition and Analysis System<br />=>Fast Scan Receiver<br /><br />Air Defence Systems & associated products<br />=>Radar Data Processors<br />=>Multi-sensor Data Fusion<br />=>Plot Extraction Devices<br />=>Dual Channel Video Extractors<br />=>Area Moving Target Indicators<br />=>Futuristic Automated Air Defence System<br />=>COTS-based Air Defence System<br />=>Integrated Air C&C System<br />=>Mission Planning Package<br />=>Air Intelligence Package<br />=>Mission Computer for Sukhoi Aircraft<br />=>SRSC - Software Radar Scan Converter<br />=>AURA - Remote Control and Monitoring System for Airfield Lights<br /><br />Unmanned Aerial Vehicles, Aerial Reconnaissance Equipment, PTA & Air-Ground Data Link<br />=>Reconnaissance payloads for UAV (Gimbal Payload Assembly)<br />=>Electronic Modules for PTA (Lakshya)<br />=>Digital version PTA<br /><br />Command Posts, Displays and Multi Function Consoles<br />=>Dual Monitor Multi Function Consoles (DMFC)<br />=>Tactical Naval Consoles<br /><br />Setting up / Upgradation / Modernisation of Air field Infrastructure, Strategic facilities & Bases<br />=>Modernisation of Air Field Infrastructure<br /><br />Sensors / Underwater Sensors<br />=>Thermal Imaging / Night Vision Systems<br />=>Electro Optical Payloads<br />=>Tadpole Sonobuoys<br /><br />Border Security Management Systems<br />=>Secured Perimeter with Intelligent Detection and Effective Response<br />=>Remote Pan/Tilt Observation System<br />=>Ground Based/ Underground Sensors<br />=>Solar Panel based un-attended Power Supplies<br /><br />Manufacturing, Documentation, Maintenance, Support and Repair Services<br />=>Design Engineering Services<br />=>Value Added Electronic Manufacturing Services<br />=>Life Cycle Support<br />=>System Up-gradations in case of non-availability of obsolete components<br />=>Refurbishments, Retro-fitments and modifications as per User requirements<br />=>Warranty Support/Comprehensive Annual Maintenance Contracts<br />=>Obsolescence Management / Drop-in Replacements<br />=>Structured Training Modules for Operations and Maintenance<br />=>Customised Technical Documentation – JSS0251 Standards<br />=>Inventory management with Component-level traceability for components<br />=>All India network of Service Centres: Resident engineers deputed at remote installation sites<br />
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Pinaka Multibarrel Rocket launchers are now the de-facto standard Multibarrel Rocket Launchers for Army. and Army is producing 5000 rockets per year <a href="https://en.wikipedia.org/wiki/Pinaka_multi_barrel_rocket_launcher#cite_note-pib1-7">(2014) </a><br />
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<span style="color: red;">My take: if you consider the Defence capabilities built in "TataPower SED" I think Tata Power SED will be worth atleast 20,000Cr. Tata Power power assets are also substantial as its the largest Pvt sector power company In India. From the look of it tata Power SED is into Electronic & Communication systems for Indian Defence industry.. and does everything under the sun. For someone who is looking for an above the market returns over the next 5-10 yrs can expect Tata Power to deliver the same. I would say a multibagger with risk reward in favour of investors..</span><br />
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</script>What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com5tag:blogger.com,1999:blog-14410328.post-32210660666100612022016-10-04T21:04:00.001+05:302016-10-04T21:04:12.020+05:30Permanent Magnets: Hidden Gem, Value Buy!!<br />
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Permanent Magnet <a href="http://www.pmlindia.com/">www.pmlindia.com</a><br />
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CMP: 18.8<br />
Market Cap: 16.17Cr<br />
Annual Sales March 2016: 67.7Cr<br />
PBDIT: 3.81Cr<br />
Net Profit: 0.93Cr (93 Lakhs)<br />
EPS: Rs1.08<br />
Debt: Long term: 3.82Cr<br />
Debt Short term: 13.82Cr <br />
<a href="https://cdn.shopify.com/s/files/1/0309/7625/files/New-annual-report-2015-2016.pdf?9560157514891776863">Annual Report March 2016</a><br />
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Permanent Magnets Limited is one of the flagship companies of Taparia Group, Mumbai and also one of the leading manufacturers of Alnico Cast Magnets and Yoke Assemblies. It is a front-runner among young, dynamic and growing companies in India.<br /><br />PML magnets are used extensively in key industry sectors such as electronics, electricity meters, automobile industries, telecommunication, defense, space research, aeronautics, railways and electricity generation.<br /><br />The technical collaboration started in 1963 with “Centro Magneti Permanenti” (CMP) Italy. In 1973, PML started manufacturing Ferrite magnets. In 1983, PML upgraded technology with help of Dowa Mining (Japan) and Sumitomo (Japan).<br /><br />PML started manufacturing magnetic assemblies such as Separators, lifting devices, holding devices etc. in 1984. In 1996, PML implemented the ISO 9001:1994 system for the first time. PML has been growing since then in the field of Magnets, Assemblies, Shunts and High Permeability components.<br />
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PML is into manufacturing electricity meter components (electro mechanical meters) used in metering systems installed in households. it also manufacturers a large variety of magnetic material equipment for industiral as well as personal use.<br />
With the move worldwide to smart electronic meters (meters which provide additional data such as energy utilization, remote meter reading..) the company had to retool itself to manufacture these smart electronic meter components. <br />
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Smart meters consist of digital displays for displaying detailed energy usage,and the cost related to the energy usage. With the detailed energy usage and cost displayed on digital display, the consumers are able to understand and act accordingly to conserve the energy For instance; the consumers adjust their consumption patterns when they discover the amount of power used and the cost of operation of the several appliances.<br />
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The major appliances in the home, such as washing machines can be automated with the help of smart meters. This allows such appliances to take various advantages, such as time-of-use tariffs. With the two-way communication offered between intelligent household appliances and meters, the consumers are able to make note of the power being consumed. By two-way communications, energy service provider or utilities are also able to control elements of the consumer’s usage for lowering their bill.<br />
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Taparia group is a well established name in "<a href="http://www.tapariatools.com/">Hand tools market and is a market leader in India</a>" so the management is a well established business group.<br />
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PML India intends to address the smart meter market in India and abroad and the management seems to be experienced in this business (as they used to manufacture magnetic components for electro-mechanical electricity meters before.)<br />
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Valuation wise due to low profitability it is not yet clear how it will all pan out. But looking at the addressable market and the growing demand and strong promoter background, I expect Permanent magnet valuation to rise further as the firm becomes entrenched in the market, fundamentals improve and the market acknowledges its position.<br />
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Fair valuation will be a market cap equal to 1 times sales. liquidity is very low so one needs to patiently accumulate. Long term value buy, multibagger<br />
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</script>What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com18tag:blogger.com,1999:blog-14410328.post-7438999715294489332015-11-10T03:48:00.000+05:302015-11-10T03:48:31.560+05:30How Are We Doing Diwali 2015Wishing all Investors <span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">and readers a Healthy and Prosperous New Year!.. Let us start with the review of our performance.</span><div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">Its been 6 yrs (2009 to 2015) and looking at the data of recommendations.</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">1. considering an investment of 10,000 in 28 stocks ie. 2,80,000 the stocks discussed in the message board have given an absolute return of 158.75% that's an avg of 30.74% per year on invested capital(Including dividends). </span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">Invested capital: 2,80,000.00</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">Current Value: 7,24,513.00</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;"><br /></span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">2. The NIFTY (Absolute: 82.50%, Annual: 12.79%) & SENSEX (Absolute: 82.72% & Annual: 12.82%)</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">this clearly shows that if we do invest with value investing principals on a long term basis the returns are worth the effort and one can expect to do better than the index.</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">Index Annual Return: 12.82% add another 2% for dividend ie 14.82%</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">Stocks Discussed in Blog Annual Return: 30.74%(dividend included)</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">Difference: 15.92%</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;"><br /></span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">3. Surprisingly my Recommended Best Buy stocks : GAEL,Jayant, NHPC & Tata Comm) have fared not so well. giving an annual return of 9.32% </span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;"><br /></span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">4. hypothetical situations:</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">- If invested only in profit making stocks returns would be: Absolute: 253.04%, Annual: 48.76%</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">- If invested only in loss making stocks returns would be: Absolute: -ve 30.56%, Annual -ve 4.88%</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">- If invested only in dividend paying stocks returns would be: Absolute: 184.36%, Annual: 35.84%</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;"><br /></span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">Total Stocks: 28</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">Loss making stocks: 9, Ratio: 32.14%</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">Profit making stocks: 19, Ratio: 67.85%</span></div>
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Avg no of days invested: 1884.71 days (5 yrs 2 month)</div>
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<b>Takeaway:</b> Investment of <span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">2,80,000 (10,000 invested in each of the 28 stocks discussed in the blog) would have in 6 yrs become 7,24,513.30 (PN: some stocks have given rights which would have resulted in additional investment capital) giving an avg of 30% return every year.. This is a very good number and if we can continue to produce these kind of returns on a long term basis it would be phenominal!!</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">I doubt that we can continue to produce such great returns .. but long term I'm sure we can beat the index.</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;"><br /></span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">Our Data indicates investing only in dividend paying companies is a great investing principle</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;"><br /></span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">I must add.. Manugraph India which has been reporting losses for past few yrs but still continues to pay dividend even during these loss making years is a good buy at current prices.. (CMP is below our recommended price in 2010)</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;"><br /></span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">Dividend payment also indicates a management which is willing to share the wealth with shareholders and I think its a great idea to stick to investing in dividend paying stocks..</span></div>
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Recommended Best Buy:</div>
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Absolute Return: 50.51%, </div>
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Annual Returns: 9.32% </div>
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Recommended best buy stocks have actually underperformed massively</div>
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GAEL has given the best returns Absolute Returns: 113.65%, Annual Returns: 19.34%</div>
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Tata Comm has given avg returns: Absolute Returns: 73.52%, Annual Returns: 14.84%</div>
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Jayant Agro has given below avg. returns: Absolute: 48.87%, Annual Returns: 8.90%</div>
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NHPC has been the real drag giving -ve returns: Absolute Returns: -ve 34.01, Annual Return : -ve 6.35%</div>
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NHPC indicates how important it is to buy at the right price.. right now NHPC CMP: 17.70 is a great price to add on for the long term. In hindsight ..I have a better understanding that though Hydro power plants are the cheapest producers of power but that is on the long term.. initial capital investments are high and depreciation eats up a lot of earnings.. having said that over the long term (as capital investment decreases to zero) we can see NHPC giving out huge amounts of free cash.. its said that the first hydro power plant still produces energy.. so NHPC is truly for the long long term...</div>
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Recommended Best Buy stocks are all dividend paying stocks and over past 6 yrs improved their fundamentals (increasing Reserves). and from our own data we know that dividend paying stocks give good returns.. I think the "Best Buys" still have not yet reached their full potential and are worth investing in at current prices..</div>
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Tata Comm though rarely discussed is also a great company.. with the largest network of Fiber optic cable network in the world (some say 25% of worlds capacity) also with the largest amount of end points Tata comm is already the largest carrier of voice traffic in the world, Tata Comm has -ve "Net Current Assets" which means its working capital requirement is NIL. Tata Comm management has front ended all its expansion plans which gives it the first movers advantage .. giving it a moat which even well established names will have tought time cracking.. SPRINT, AT&T & some 60+ odd telecom carriers world wide use Tata Comm network to provide telecom services to their clients... Tata Comm is a play on the "data driven future" </div>
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Jayant Agro Organics: the most written about stock in this blog.. and surprisingly has very little coverage in the media .. according to me is a definite multibagger. Uniquely placed as India produces 80% of worlds castor seed (Castor seeds is the raw material for Jayant agro's speciality chemicals derived from castor oil) </div>
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Castor oil according to Indian Institute of Chemical Technology - Hyderabad can be used to derive 1000+ chemical intermediates to replace "Crude oil" in the chemical industry.</div>
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Jayant Agro had purchased the Govt of Gujarat Castor Seed Crushing plant in Banaskantha Gujarat. Now Banaskantha produces close to 200,000 Metric Tonnes of castor seed which is equal to the total castor seed production of "China" the 2nd largest castor producing country.. now Jayant is the largest processor of Castor seeds in the <a href="http://jayantagro.com/quality.php#accolades" target="_blank">world</a>.</div>
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Jayant has also formed alliances with Arkema (French Speciality chemical company and largest consumer of castor oil in the world:- <a href="http://tinyurl.com/ooq9xyt" target="_blank">Ihsedu Ahrochem: Jayant:75.1%, Arkema:24.9%)</a> </div>
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Jayant has forward integrated to produce high value added Castor oil based polyols: <a href="http://tinyurl.com/pvs4c76" target="_blank">Vithal Castor Polyol: </a> Mitsui Chemical, ITOH OIL JV: Jayant 50%, Mitsui Chem:40%, ITOH Oil: 10%)</div>
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Jayant has over the years built a moat by backward and forward integration.. now its time to enjoy the fruits of years of hardwork... I see a more assertive management with news reports trickling in.. </div>
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Business Today <a href="http://businesstoday.intoday.in/story/emerging-companies-2015-ihsedu-agrochem-leader-castor-oil/1/221086.html" target="_blank">(Castor Oil Czar)</a> and Fortune India (<a href="http://jayantagro.com/news.php" target="_blank">Fortune India Ranks Jayant 38th in Next 500 </a></div>
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<a href="http://jayantagro.com/news.php" target="_blank">midcap companies) </a> ranking of 500 companies. <a href="http://tinyurl.com/ntd4qy9" target="_blank">Jayant Agro 7 yrs Avg. ROCE (Return on Capital Employed): 26.32%</a>, Consistent dividend payout since inception 21+ yrs is a real Hidden Gem..</div>
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Suggestion: Invest in all the recommended best buy's as they are still very attractively priced.</div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;"><b>Outlook:</b> Outlook for demand is "GRIM" specially world wide due to BASEL-III. Though Basel-III is supposed to help prevent a banking related "financial crisis" .. BASEL-III regulations are going to reduce the ability of the banking industry to rotate money.. resulting in slower growth and tepid demand.</span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;"><br /></span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">World wide demand will stumble (unless the US FED Raises Rates by 50-75 basis points.. yes raising rates by FED could result in 2-3 trillion dollars to flow into the US/world financial system.. which could hypothetically cause devaluation of dollar and massive inflation - in USA) <a href="http://www.federalreserve.gov/releases/H3/Current/" target="_blank">US FED Banks hold 2.5 Trillion in excess reserves with the FED </a> well thought out Stocks are still going to be the best bet.</span></div>
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<br /></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">India is still going to see a problem of excess demand (As most of the population is still unbanked and live beyond the reach of banking/finance) and basic needs are still not fulfilled. Integration of the rural masses to financial system is going to be crucial(easier said than done in a cash economy). </span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;"><br /></span></div>
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<span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">Inflation is here to stay for next few yrs.. even though the NDA govt has reduced the rate of Monetary expansion its running at 11% (16% during UPA). Tier -II bonds of banks is an interesting space for fixed income. </span><span style="background-color: white; color: #333333; font-family: Georgia, serif; font-size: 13px; line-height: 20.8px;">There is always misallocation of Assets and Asset Reconstruction Companies is also an interesting space.. </span>A well run bank in an unbanked country like India could be available at attractive rates due to BASEL-III regulations causing a sharp rise in NPA..</div>
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=Happy Investing</div>
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PN: these are my personal view points and not a recommendation to buy or sell. Please consult a SEBI registered financial advisor. This blog is a place for me to reflect on my investment view point over the passage of time for my own personal understanding.</div>
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What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com4tag:blogger.com,1999:blog-14410328.post-80040639876275681222015-10-15T03:31:00.002+05:302015-10-15T03:31:41.149+05:30Jayant Agro Organics: Short Term Debt..is it really Bad/Good Debt??Jayant Agro Organics:<script type="text/javascript">
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<div>
CMP: 112</div>
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Market Cap: 168Cr</div>
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Book Value: 146.78 (consolidated), 124.49 (stand alone)</div>
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Sales March 2015: 1580.71Cr<br />
Net Profit: 10.52Cr (Consolidated)<br />
Cash Flows From Operations (March 2015): +175Cr<br />
7 yrs Avg. ROCE: 26.32% (Consolidated), 25.34%(Stand Alone)</div>
<div>
<br />
Whenever I suggest Jayant agro to other investors stating all the Strong points of Jayant agro.<br />
- Largest Player in castor oil and castor oil derivatives space in the world.<br />
- Unique advantages as India produces 80% of world's castor seed<br />
- Consistent dividend payout since inception ie more than 21yrs of dividend payout.<br />
- JV with market leaders like Arkema, Mitsui Chemical, ITOH Oil.<br />
- Castor oil & its Derivatives are well established as Green Chemicals<br />
- Promoters hold US Patent for efficient production of Sebacic Acid.<br />
<br />
One of the question almost always get pushed back at me was..<br />
just look at the Debt 250Cr Huge!!<br />
add to that low Net Profit margin 1-2% its not worth the risk..<br />
<br />
Well today lets look at the Huge debt !! and try to understand why its there and is it really Good/Bad Debt??<br />
<br />
If you go to CRISIL which is the credit rating agency that has rated Jayant Agro's Debt. We get the following info <a href="http://www.crisil.com/Ratings/RatingList/RatingDocs/Jayant_Agro_Organics_Limited_November_28_2014_RR.html" target="_blank">(link)</a><br />
<br />
Jayant Agro:<br />
Long Term Rating: BBB+/Stable (Reaffirmed)<br />
Short Term Rating: A2 (Reaffirmed)<br />
<br />
<b>Bank Facilities:</b><br />
<b>Letter of Credit & Bank Guarantee:</b> 70 million (7Cr) <b>Rating:</b> A2<br />
<b>Long Term Loan:</b> 492.8 million (49.2Cr)<b> Rating: </b>BBB+/Stable<br />
<b>Packing Credit: </b><span style="color: red;">2539.7 million (253.97Cr)</span> <b>Rating:</b> <span style="color: red;">A2</span><br />
<b>Proposed Long Term Bank Loan Facility:</b> 2.2 million (22 lakhs)<b> Rating:</b> BBB+/Stable<br />
<b>Standby Line of Credit:</b> 395.3 million (39.5Cr) <b>Rating:</b> A2<br />
<b>Total:</b> 3500million (350Cr)<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjawO06me_WryGACzOHomjArYcs8OO6MM3ayJlnxZVVsiNPvHPdXKbfLoVRSra0fGg6yBDFX33pB-Ffay6Y7zmKp5iMYuPaznIwEJsENuy7GH0rLl049s2_x5OfBpfzp2NVuNXd7w/s1600/Crisil-2014.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjawO06me_WryGACzOHomjArYcs8OO6MM3ayJlnxZVVsiNPvHPdXKbfLoVRSra0fGg6yBDFX33pB-Ffay6Y7zmKp5iMYuPaznIwEJsENuy7GH0rLl049s2_x5OfBpfzp2NVuNXd7w/s400/Crisil-2014.png" width="241" /></a></div>
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If I look at the various bank facilities listed in the CRISIL rating for Jayant Agro, the largest component is a short term 253.97Cr Packing Credit with A2 credit rating. Considering the total rated debt is 350Cr 253.97Cr is like 72% of the credit line for Jayant agro. if we understand Packing Credit we will understand Jayant Agro's Debt..<br />
<br />
What is Packing Credit?<br />
According to <a href="https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?Id=8132&Mode=0" target="_blank">RBI (Reserve Bank of India)</a>: Packing Credit is credit provided by a bank to an exporter on the basis of <b>Letter of Credit</b> opened in his favour...<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOVjnP0iiPLnaW8kt4r27WIY87iIp-GFF1EgdybidcYwf6FKQLQjFNgV0I5ZoxMI6jVvHpIN1TQVc1gor6FcdiHZ2XmwZ1jT3l-dMjVj_ouYpf4snmx2daebo3si8zcQEIRuWiFg/s1600/PackingCredit-RBI.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="120" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgOVjnP0iiPLnaW8kt4r27WIY87iIp-GFF1EgdybidcYwf6FKQLQjFNgV0I5ZoxMI6jVvHpIN1TQVc1gor6FcdiHZ2XmwZ1jT3l-dMjVj_ouYpf4snmx2daebo3si8zcQEIRuWiFg/s400/PackingCredit-RBI.png" width="400" /></a></div>
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<span style="font-family: inherit;">Letter of Credit : The LC should be irrevocable and issued by our correspondent bank abroad or a bank of international repute. Genuineness or authenticity of the LC should have been verified.</span></div>
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So the 72% of the Short term loan (254Cr) actually indicates that Jayant agro has a <b>Confirmed Export Order</b> (Letter of Credit) in hand worth 254Cr and this is a credit scheme for exporters provided by RBI.<br />
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Now that we know "Short Term Debt" is nothing but an export credit backed by a letter of credit issued by a bank? So is Jayant agro "Short term Debt" Good Debt or Bad Debt?<br />
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Another thing worth observing is the type of rating Jayant Agro debt has.. A2 & BBB+<br />
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According to CRISIL: <a href="https://www.crisil.com/pdf/ratings/standardisation-rating-symbols-definitions.pdf" target="_blank">(Rating Definition)</a><br />
<b>Short Term A2:</b> Instruments with this rating are considered to have <u>strong degree of safety</u> regarding timely payment of financial obligations. Such instruments carry low credit risk.<br />
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<b>Long Term BBB+:</b> Instruments with this rating are considered to have <u>moderate degree of safety</u> regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.<br />
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Export related finance that Jayant has got (Rating: A2) has a higher degree of rating than its "long term Loan" (Rating: BBB+). the RBI guidelines are helping Jayant get export "Packing Credit" at an attractive interest rate.<br />
<br />
<span style="background-color: white; line-height: 21.6px;"><span style="color: red; font-family: inherit;">The return on capital employed (ROCE) is a better measurement than return on equity(ROE), because ROCE shows how well a company is using both its equity and debt to generate a return.</span></span><br />
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If you see Jayant Agro 7 yrs ROCE its 26.32% indicating a pretty efficient financial setup..<br />
Even in year ending March 2015 ROCE is: 18.76% which is pretty good considering 2015 Net Profit was the lowest in past 6 yrs.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjd5HXtq4N-NanNz6RwFXtO1UG4pWPS79x7pA5dfGxXsXQx_KiDsoVhRSp5-bcghrbCMnJdvhE89yFPyy97l04josicqFpFHx4eihBtXpH0qsnx_E3JSdVAIGr8LC836mNCrJMlhw/s1600/Jayant-ROCE7yrs.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="237" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjd5HXtq4N-NanNz6RwFXtO1UG4pWPS79x7pA5dfGxXsXQx_KiDsoVhRSp5-bcghrbCMnJdvhE89yFPyy97l04josicqFpFHx4eihBtXpH0qsnx_E3JSdVAIGr8LC836mNCrJMlhw/s400/Jayant-ROCE7yrs.png" width="400" /></a></div>
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<span style="color: red;">Conclusion: Jayant Agro Debt is 90% short term in nature and is "Packing Credit" which indicates the debt is backed by a "Confirmed Sale" in the form of Letter of Credit. </span><br />
<span style="color: red;"><br /></span>
<span style="color: red;">ROCE of Jayant agro for 7 yrs on average is: 26.32 % which indicates that Jayant agro is pretty efficient in allocating its capital (Equity + debt) High short term debt is acting like a smoke screen... </span><br />
<span style="color: red;"><br /></span>
<span style="color: red;">Jayant's Cash Flows from Operations for Year Ending March 2015 is: +175Cr, longterm debt: 16Cr Current Market Cap of Jayant Agro is 170Cr.. which means you have a world class castor oil & castor oil derivatives player you can buy 100% stake for less than its "1 year Cash Flows from Operations!!</span><br />
<span style="color: red;"><br /></span>
<span style="color: red;">Jayant agro high short term debt and low profit margins are acting like a smoke screen .. hiding a very efficient allocator of capital (ROCE: 26.32% 7 yrs avg). Jayant agro is very very attractively priced and a Deep Value Buy!! A true Hidden Gem!!</span><br />
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<br />
<a href="http://whatsup-indianstockideas.blogspot.in/2014/07/jayant-agro-organics-why-i-love-this-2.html" target="_blank">Link: Jayant Agro: Why I Love this 2% Net Profit Business</a><br />
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What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com19tag:blogger.com,1999:blog-14410328.post-45215899244613932842015-10-12T06:02:00.000+05:302015-10-12T19:03:25.838+05:30Gammon India: worth it! Gammon India<script type="text/javascript">
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<div>
CMP: 13.28</div>
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Market Cap: 180.30Cr</div>
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Gammon India is one of the largest civil engineering construction companies in India. Gammon India can also lay claim to having built the maximum number of bridges in the whole of the commonwealth <a href="https://en.wikipedia.org/wiki/Commonwealth_of_Nations" target="_blank">(commonwealth is a term used for countries ruled by the British)</a> First project started in 1919 was the piling and civil foundation work for "The Gateway to India" Gammon India was founded on 1922.</div>
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Other important landmark civil engineering projects are:</div>
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- India's first cable-stayed bridge at Akkar, Sikkim</div>
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- The longest railway tunnel in Asia for Konkan Railway at Ratnagiri.</div>
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- Mahatma Gandhi Setu Bridge spanning the river Ganges, between Patna and Hajipur in Bihar (Commerative stamp issued by Indian Postal department in 2007 "LandMark bridges of India)</div>
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- Terminal Building of Sharjah International Airport UAE.</div>
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- Elevated viaducts for Delhi Metro Rail Corporation</div>
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- India's First Second Generation Prototype Fast Breeder Nuclear Reactor</div>
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<br /></div>
<div>
The list is endless .. the latest addition is going to be the <a href="http://www.gammonindia.com/media-centre/pdfs/signature-bridge-article.pdf" target="_blank">Signature Bridge Across Yamuna river in Delhi</a> </div>
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So all said and done Gammon India is a well established name in civil engineering in India. </div>
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Lets now look at why Gammon India is quoting at such a dismal price (Market Capital of 180Cr ) </div>
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<br /></div>
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If we look at the balance sheet we see that.</div>
<div>
1. Gammon India has a -ve networth of -432Cr</div>
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2. Total Debt is 10,306Cr</div>
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3. Has been reporting Annual report for 9 months for past 2 yrs </div>
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4. 2014-2015 year end has been extended to 18 months ie Oct 1,2014 to March 2016</div>
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Income statement also has only a sad story to tell.. </div>
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1. past 5 yrs Sales has dropped by 50% 8162Cr(2011) to 3885Cr (2014 [9 months])</div>
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2. Net profit is negative for past 4 yrs </div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjf4i0g438Rq0tG4h1yiagw1_rtQeioeKdaVqi4KtMCijF86ZHGA_PGjC-xGJ4puo-UuJFAnIbyTMjJx2LU6D2wJaUu1tidZo2-BHah6ujVBvdwxHO0MU7gwY26sd-gTLIJlcWK_Q/s1600/gammon-IncomeStatement.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjf4i0g438Rq0tG4h1yiagw1_rtQeioeKdaVqi4KtMCijF86ZHGA_PGjC-xGJ4puo-UuJFAnIbyTMjJx2LU6D2wJaUu1tidZo2-BHah6ujVBvdwxHO0MU7gwY26sd-gTLIJlcWK_Q/s320/gammon-IncomeStatement.png" width="230" /></a></div>
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Lets look at Cash flows.. and its gets a little bit interesting</div>
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1. +ve Cash flows from Operations for past 3 yrs </div>
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2. Company has been able to generate +ve cash flow from "Finance Activities" </div>
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3. Gammon has not stopped deploying cash in new projects (-ve Net Cash From Investing Activities)</div>
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Clearly though Gammon India has been reporting losses for past 4 yrs, it has been able to scrape through as far as Cash Flows is concerned with finance still trickling in..</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhl9SksPkP_2lz8kwozfENLP_fnIrUwHzaDff6J1Y8FQG2OLhsXRSYXMzp5bFGu85w7UpOALbXlNeI9A2V8LS5Tt-11DnsPTANuEqDiPQf5NzzP66vU7J_l23QsKOB6fRRr_gteQQ/s1600/gammon-cashFlows.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="181" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhl9SksPkP_2lz8kwozfENLP_fnIrUwHzaDff6J1Y8FQG2OLhsXRSYXMzp5bFGu85w7UpOALbXlNeI9A2V8LS5Tt-11DnsPTANuEqDiPQf5NzzP66vU7J_l23QsKOB6fRRr_gteQQ/s400/gammon-cashFlows.png" width="400" /></a></div>
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Price Chart: </div>
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Price chart is something we already know about (180Cr Market Cap) </div>
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1. Gammon India stock price was at its peak in 2008 of about 790/- per share..</div>
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2. During the financial crisis 2008-2009 it fell to its teens and then recovered to 200+ levels 2009-2010</div>
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3. 2011 -ve earnings started and company has been downhill since then.</div>
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4. 999 Day EMA(5 yrs) Exponential moving avg is 47.47 </div>
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5. 50 Day EMA is 14.02</div>
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6. 100Day EMA is 16.05</div>
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7. CMP: 13.28</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpV5xjlIJQwwCnwITW4hKcj3FblTbaZ6A3hJbPvhYWG6FzcmT0PFzftEeq26idsdpASX8QuYun_o7Zm3AdGEhr7pAZHynoPKwKL5TQ3tjhF1NnxIvZol3TfSs6k8lAPN7pMfR5Rg/s1600/gammon-chart.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="217" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpV5xjlIJQwwCnwITW4hKcj3FblTbaZ6A3hJbPvhYWG6FzcmT0PFzftEeq26idsdpASX8QuYun_o7Zm3AdGEhr7pAZHynoPKwKL5TQ3tjhF1NnxIvZol3TfSs6k8lAPN7pMfR5Rg/s320/gammon-chart.png" width="320" /></a></div>
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Well there is no doubt that stock price is in the dumps. topline for year ending Sept 2014 was 3885Cr </div>
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Market cap of 180Cr is like 4.6% of its Last reported Annual Sales..</div>
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Ofcourse 180Cr Market cap has no meaning cause there is 10306Cr of debt and 8770Cr of Contingent liabilities.. </div>
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So 2 things is clear .. </div>
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1. Market cap is peanuts for Gammon India considering that its a pre-independence Era company and is well established as a Civil construction Engineering company.</div>
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2. Gammon India is in dumps with 10306Cr debt and 50% drop in Sales in past 5 yrs... picture is Bleak!!</div>
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I think as investors one question in my mind is "Will it recover" Can I buy this worthless piece of paper and turn it into a crown jewel??</div>
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My answer is Resounding YES!!</div>
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1. Gammon has done a Corporate Debt Restructuring (CDR)</div>
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2. Cut-off date of CDR was 1st Jan 2013</div>
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3. Total debt aggregating 14,814Cr has been restructured. (both Fund & non-fund based)</div>
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4. CDR package provides a 10yrs repayment plan (including 2 yrs moratorium)</div>
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5. Interest rate has been lowered by 1% for 15 months ( that would be till April 2014)</div>
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6. Waiver of penal charges till date of implementation</div>
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7. Additional funding by way of priority loan. </div>
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8. All securities envisaged under the CDR scheme have been created.</div>
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9. Promoters have been issued Zero Coupon (zero interest) Compulsory Convertible Debentures worth 100cr. So the promoters have bought in 100cr additional investment in equity of Gammon India on<a href="http://tinyurl.com/qy3cbnt" target="_blank"> 26th May 2015</a> these CCD will be converted into shares @ <a href="http://tinyurl.com/na8dndf" target="_blank">a price of 25.30 per share</a>.</div>
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10. On <a href="http://tinyurl.com/oy2kmpb" target="_blank">14th August 2015</a> Gammon India has decided to restructure and segregate its businesses and created 2 wholy owned subsidiaries </div>
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a) Gammon Retail Infrastructure Limited (GRIL)</div>
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b) Transrail Lighting Limited (TLL)</div>
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The rationale was..</div>
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a) To create sector focussed companies</div>
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b) To enable investments by strategic investors</div>
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c) De-risk business from each other</div>
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d) Deleverage balance sheet of the company.</div>
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<b>Gammon Retail Infrastructure Limited (GRIL):</b> Transfer & vesting of the company's civil EPC undertaking ie. Civil Engineering, Procurement and construction business carried on by the company in roads, hydro-power, nuclear power, tunnels, bridges, buildings, cooling towers, chimney and other sectors <span style="color: red;"><u><b><i>as a going concern,</i></b></u></span> which shall include all the properties, rights & powers and all debt, liabilities, duties and obligations comprised in and pertaining to the EPC business into GRIL against issue and allotment of equity shares by GRIL to GIL (Gammon India Limited)</div>
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<b>Transrail Lighting Limited (TLL): </b> Transfer & vesting of the company's T&D Undertaking (as defined in the scheme) comprising of the Engineering, Procurement and construction business of the company in the Transmission & distribution sector, including the tower testing facility located at Deoli and the tower manufacturing facility located at Baroda and Nagpur, but excluding the tower manufacturing facility located at Deoli and the conductor manufacturing facility located at Silvassa, <b><i><span style="color: red;"><u>as a going concern,</u></span></i></b> which shall include all properties, rights and powers and all debts, liabilities, duties and obligations comprised... to the T&D business into TLL against issue and allotment of equity shares by TLL to GIL </div>
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basically the company has created 2 100% owned subsidiaries which are Healthy (a going concern) and debt liabilities of these 2 Healthy companies have been separated (for sale in the future or to attract investments..)</div>
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11. <a href="http://tinyurl.com/phmw2mh" target="_blank">On 27 Aug 2015</a> Step down subsidiary Gammon Infrastructure Projects Limited (GIPL) has divested its stake in 9 projects .. this will result in cash inflows of 563 cr plus advance waivers of 285cr another divestment of 50% stake in Vizag Seaport Pvt. Ltd. will result in 62.5cr, plus future cash flows of 100cr based on achieved milestone. So that should see 1000cr inflow into Gammon India Limited.<br />
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12. Gammon India on<a href="http://tinyurl.com/p6mst3o" target="_blank"> 21 Aug 2015</a> announced receipt of 397cr road project from Public Works department.<br />
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13. On <a href="http://tinyurl.com/oyf4kpg" target="_blank">24th Sept 2015 </a>Gammon India announced getting a 1799.99cr NHAI road project.<br />
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<span style="color: red;">Conclusion: </span><br />
<span style="color: red;">All these activities donot confirm that Gammon India is solvent. It does however indicate that the company is taking steps to reduce its debt burden. creating separate subsidiaries GRIL & TTL which are considered "A going concern" all point to positive development.</span><br />
<span style="color: red;"><br /></span>
<span style="color: red;">Though complete recovery will take years.. I think this is a good time to buy into Gammon India. If Gammon India was not in Financial difficulty we would have never seen such low price.. the brand is intact and we are still seeing new order flows.. Long term 5+yrs could be a multibagger.</span><br />
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What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com1tag:blogger.com,1999:blog-14410328.post-29417127488626701192015-08-23T01:22:00.000+05:302015-08-23T01:25:50.786+05:30Thrive: What On Earth Will It Take?Foster & Kimberly Gamble (P&G promoter family) have released this interesting movie/documentary... must see for all...<script type="text/javascript">
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<iframe allowfullscreen="" class="YOUTUBE-iframe-video" data-thumbnail-src="https://i.ytimg.com/vi/lEV5AFFcZ-s/0.jpg" frameborder="0" height="266" src="https://www.youtube.com/embed/lEV5AFFcZ-s?feature=player_embedded" width="320"></iframe></div>
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Interesting part is the "torus" .. I found another interesting site "Kesh Foundation" which is talking about "Plasma Energy" which is also about Free energy and Torus...<br />
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News is there that Iran has captured 3 different DRONES of USA in mint condition... which is surprising as these drones have some kind of built in self destruct sequence to prevent capture of sensitive technology..<br />
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Also recent Nuclear treaty with Iran by western nations which will result in free flow of trade.. and that Iran has been alloted the big brother status in middle east sidelining long standing ally Saudi Arabia is a big shift..<br />
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Has Iran access to sensitive technology.. which America might be interested in..?<br />
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<iframe allowfullscreen="" class="YOUTUBE-iframe-video" data-thumbnail-src="https://i.ytimg.com/vi/bBLjBf5bzH0/0.jpg" frameborder="0" height="266" src="https://www.youtube.com/embed/bBLjBf5bzH0?feature=player_embedded" width="320"></iframe></div>
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<span class="watch-time-text" style="background: transparent; border: 0px; margin: 0px; padding: 0px; vertical-align: middle;">Published on Mar 24, 2015</span></div>
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The new "Free Energy" technology of Iranian born nuclear physicist, Mehran Tavakoli Keshe, has apparently rendered The Western Military Machine obsolete, as demonstrated in several military confrontations over the past few years, most recently with the simulated sinking of the USS Theodore Roosevelt Super Aircraft Carrier. incidents include:<br />
1. The December 2011 Interception and bringing down and displaying on Iranian TV of America's most advanced drone weapon, the Bat-winged, high-flying and hard to detect, RQ-170 Sentinel drone. The Iranians displayed the immaculate gleaming white drone that looked straight off the production line and had just been plucked out of the sky.<br />
2. The November 2014 disabling of the high tech AEGIS Class USS Donald Cook by a single Russian SU-24 Fighter Jet, in the Black Sea<br />
3. The March 2015 simulated sinking of the Super Aircraft Carrier the USS Theodore Roosevelt by a French Submarine armed the technology and<br />
4. Apparent subsequent chasing and disarming, by Russian Subs of the USS Theodore Roosevelt as it headed to the North Sea to engage Russian buildup in the area, forcing it into unscheduled port.<br />
The defensive weapons technology that has now rendered the West, including the United States incapable of waging global war is called the Magrav Technology weapon and the Russians, among other nations have fully implemented this technology into their defensive capabilities, while the United States and its Western Allies have failed to develop counter measures to it.<br />
Mehran Tavakoli Keshe, the inventor of this technology, is founder of the Keske Foundation which is tasked with dessiminating his new technology throughout the world, for the betterment of mankind.</div>
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<a href="http://www.whatdoesitmean.com/index1853.htm" target="_blank">Letter to Obama by Kesh</a></div>
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<a href="http://in.sputniknews.com/indian.ruvr.ru/2014_04_21/Russian-Su-24-scores-off-against-the-American-USS-Donald-Cook-5786/" target="_blank">SputnikNews-Disarm-USS Donald Cook</a></div>
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<a href="http://www.voltairenet.org/article185860.html" target="_blank">Voltaire News: Unarmed Russian Bomber Disables USS Donal Cook</a></div>
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<a href="http://www.bbc.com/news/world-us-canada-16095823" target="_blank">BBC: Iran Capture Latest US Drone</a></div>
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<span style="color: #333333; font-family: Roboto, arial, sans-serif;"><span style="font-size: 13px; line-height: 17px;">Kesh Foundation..</span></span></div>
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<span style="color: #333333; font-family: Roboto, arial, sans-serif;"><span style="font-size: 13px; line-height: 17px;"><a href="https://www.spaceshipinstitute.org/">https://www.spaceshipinstitute.org/</a> (to teach Plasma technology) </span></span></div>
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<span style="color: #333333; font-family: Roboto, arial, sans-serif;"><span style="font-size: 13px; line-height: 17px;"><a href="https://www.thenewenergyindustry.com/project/magrav-technology/">https://www.thenewenergyindustry.com/project/magrav-technology/</a></span></span></div>
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<span style="color: #333333; font-family: Roboto, arial, sans-serif;"><span style="font-size: 13px; line-height: 17px;">So this is controversial but maybe the need of the hour.. and is it why " Oil is being pumped and dumped " .. after all who will buy oil after we get "Free Energy"</span></span></div>
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<span style="color: #333333; font-family: Roboto, arial, sans-serif;"><span style="font-size: 13px; line-height: 17px;">========================</span></span></div>
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<span style="color: #333333; font-family: Roboto, arial, sans-serif;"><span style="font-size: 13px; line-height: 17px;">Mission and Vision: Kesh Foundation Space Ship Institute..</span></span></div>
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<span style="color: #333333; font-family: Roboto, arial, sans-serif;"><span style="font-size: 13px; line-height: 17px;">The KF SSI is set up to teach to industry, organizations, and individuals, how to develop systems and technologies based on the Keshe Foundation knowledge.</span></span></div>
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<span style="color: #333333; font-family: Roboto, arial, sans-serif;"><span style="font-size: 13px; line-height: 17px;">Nestled amidst the beautiful shores of Bari, Italy, the Institute is poised to become a central hub in the spreading of plasma technology and knowledge. With its state of the art, twenty-first century facilities, the Institute will be able to provide students and staff an immersive way to learn the plasma technology, to be the leaders of the new generation of scientists and plasma engineers.</span></span></div>
<div id="eow-description" style="background-attachment: initial; background-clip: initial; background-color: transparent; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border: 0px; padding: 0px;">
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<span style="color: #333333; font-family: Roboto, arial, sans-serif;"><span style="font-size: 13px; line-height: 17px;">The aim of the KF SSI is to teach and train every individual who goes through the programs, to enable understanding of the full principles of the workings of universal systems. This provides the knowledge to be able to survive anywhere in the Universe, with the peaceful use of the MAGRAV plasma technologies.</span></span></div>
<div id="eow-description" style="background-attachment: initial; background-clip: initial; background-color: transparent; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border: 0px; padding: 0px;">
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<span style="color: #333333; font-family: Roboto, arial, sans-serif;"><span style="font-size: 13px; line-height: 17px;">The KF SSI welcomes people from all parts of life, from highly-trained experts, to individuals who simply want to learn. There is no pre-requisite for applicants other than agreeing to the World Peace Treaty for peaceful development of the Magrav technologies. The learning environment at the KF SSI is open and adaptive. The emphasis is on developing a deep understanding of principles, rather than accumulating empirical knowledge. Students will be exposed to the basic Magrav plasma principles and related applications of positive gravitational positioning, creation of new materials, production of power, and health benefits.</span></span></div>
<div id="eow-description" style="background-attachment: initial; background-clip: initial; background-color: transparent; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border: 0px; padding: 0px;">
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<span style="color: #333333; font-family: Roboto, arial, sans-serif;"><span style="font-size: 13px; line-height: 17px;">The KF SSI is primarily a space-based organization, and learning all aspects of survival in space is a priority. Students and graduates will find job opportunities in support of KF SSI space technologies, and in spin-off companies of service to mankind on Earth. The unique combination of theoretical knowledge and practical training, will enable KF SSI students to develop an understanding of the Universe not available anywhere else.</span></span></div>
<div id="eow-description" style="background-attachment: initial; background-clip: initial; background-color: transparent; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border-image-outset: initial; border-image-repeat: initial; border-image-slice: initial; border-image-source: initial; border-image-width: initial; border: 0px; padding: 0px;">
<span style="color: #333333; font-family: Roboto, arial, sans-serif;"><span style="font-size: 13px; line-height: 17px;">========================</span></span></div>
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<span style="background-color: transparent; color: #333333; font-family: Roboto, arial, sans-serif; font-size: 13px; line-height: 17px;">I think we all need to send our top of the class experts to Kesh Foundation and learn this latest Plasma technology .. which can be used for space travel, medicine, (food/energy for body on long haul interstellar flights).. I'm sure the world can live in Peace.. and in Prosperity..</span></div>
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What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com0tag:blogger.com,1999:blog-14410328.post-19699685450607098562015-08-01T23:40:00.000+05:302015-08-01T23:40:38.212+05:30Book Review:The Rigveda Code By:-Rashmi Chendvankar<script type="text/javascript">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxx8sUzVXR6hYUXbp5A1opaNTBvdK9zhHcCZDjyInHA4V0hzOUiXbWrbwWA0uDnWF4Ekbln67FYgQtbTW_X30xLinVbGgvKkRUm2OPchMEeCVtP8jPvaF066xcKvvWbd0kjZVEUg/s1600/RigVedaCode.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxx8sUzVXR6hYUXbp5A1opaNTBvdK9zhHcCZDjyInHA4V0hzOUiXbWrbwWA0uDnWF4Ekbln67FYgQtbTW_X30xLinVbGgvKkRUm2OPchMEeCVtP8jPvaF066xcKvvWbd0kjZVEUg/s400/RigVedaCode.jpg" width="283" /></a></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">600 BC…. Three Hundred years after the epochal Mahabharata War... India is still haunted by the shadows of the devastating conflict of the Kuru cousins, which almost destroyed the entire land.... The epicentre of power has now shifted to the kingdom of Vrij, situated on the northern banks of the Ganga, ruled by an ambitious king who would not stop at anything to lay his hands on the most powerful weapon of the Mahabharata age... Soaring ambitions have once again brought the ancient civilisation on the dark brink of another full-scale war.... </span><br style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;" /><span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;"><br /></span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">Against this backdrop, a warrior princess is set to change the political legacy of Ancient India – guided by her destiny... and a phenomenal man, who lived three hundred years before her... </span><br style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;" /><span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;"><br /></span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">A man who is considered God today, but whose greatest contribution lies buried below layers of ancient history...</span><br style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;" /><span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;"><br /></span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">And buried below these very layers, lies the story of this warrior princess, who unravelled the mystery of His code – an eternal way to establish dharma in Bharat...</span><br style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;" /><span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;"><br /></span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">Will the princess change the way kingdoms in India are ruled? What is the destiny of Bharat?</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">=========</span></div>
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This is a work of fiction, inspired by elements of Indian mythology and Ancient Indian history. The geographical references mentioned in the book are however factual.</div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">Chapters:</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">1. The Unique 'Rajyoga'</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">2. The Lost Chakra</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">3. The Kingdom of Kosal</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">4. The Great Guru of Archery</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">5. The Battle of Kaawar</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">6. The Wise Old Man of Bhoganagara</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">7. The Visitors From Takshashila</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">8. The Secret Revealed</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">9. Love Beckons</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">10. The Kshatriya Code</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">11. The Conspiracy of Kosal</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">12. The Soulmates</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">13. Dawn and Dusk</span></div>
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<span style="background-color: white; color: #181818; font-family: Georgia, 'Times New Roman', serif; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">14. The Capital Under Attack</span></div>
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<span style="color: #181818; font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">15. The Wish of Vasumna</span></span></div>
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<span style="color: #181818; font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">16. The Words of The Lord</span></span></div>
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<span style="color: #181818; font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">17. The Seige of Sravasti</span></span></div>
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<span style="color: #181818; font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">18. The Shadows of The Great War</span></span></div>
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<span style="color: #181818; font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">19. The Seige of Vaishali</span></span></div>
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<span style="color: #181818; font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">20. The Auspicious Chakra</span></span></div>
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<span style="color: #181818; font-family: Georgia, Times New Roman, serif;"><span style="background-color: white; font-size: 13.8000001907349px; line-height: 19.3199996948242px;">21. The Rule of The Ganarajas</span></span></div>
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Epilogue:2012 Archeological site at Vaishali, Bihar</div>
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<b>About the Author:</b></div>
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Rashmi is a legal professional in her early thirties. She is a commerce graduate, a law graduate and a qualified company secretary. She currently heads the legal and secretarial department of an IT company in Mumbai.</div>
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Rashmi has been an avid reader of ancient Indian history. She strongly feels that history textbooks are dry and limited versions of exciting stories, which should be excavated and brought to young readers. Her fascination with an amazing event of ancient Indian history which took place in 600 BC and its intriguing connection with the Mahabharat war, led her to write her debut novel “The Rigveda Code”. </div>
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Rashmi stays in Mumbai with her husband, Lalit, her three year old son, Sohum, and her in-laws, Maya and Mohan.</div>
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<b>Book: </b>"The Rigveda Code"</div>
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<b>Publisher: </b>Partridge India <a href="http://www.partridgepublishing.com/india">www.partridgepublishing.com/india</a></div>
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Stories are told to convey important underlying points which are to be carried over generations. The author in her book "The Rigveda Code" helps us decode the meaning of "the last Hymn of the Rigveda".</div>
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<span style="color: red;">...Assemble, speak together, let your minds be all of one accord,</span></div>
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<span style="color: red;">As ancient Gods unanimously sit down to their appointed share..</span></div>
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<span style="color: red;">The place is common, common the assembly, common the mind,</span></div>
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<span style="color: red;">so be your thought united.</span></div>
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<span style="color: red;">A common purpose I lay before you,</span></div>
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<span style="color: red;">to worship with your offerings..</span></div>
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<span style="color: red;">One and the same be your resolve,</span></div>
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<span style="color: red;">and be your minds of one accord,</span></div>
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<span style="color: red;">United be the thoughts of all, that all may happily agree..</span></div>
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Its a very well written book and an interesting read no doubt with good storytelling... The good part is that we are all looking back at our roots to get a better understanding of our true self..</div>
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If "Lord of the Rings" is used as an educational book .. "The Rigveda Code" would make an excellent educational book giving us(children) a glimpse of our rich heritage..</div>
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Did I know the meaning of the Last Hymn of "Rigveda" before reading this book?...... NOPE</div>
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Do I now understand the meaning of the last Hymn of "Rigveda" after reading this book??.. A definite YES!!</div>
What'sUp Prahaladhttp://www.blogger.com/profile/05216054234415437998noreply@blogger.com0tag:blogger.com,1999:blog-14410328.post-30996435206668016372015-01-31T03:43:00.000+05:302015-01-31T03:43:15.570+05:30Anil Gupta: "Emerging Frugal Innovations in Energy"<div class="separator" style="clear: both; text-align: center;">
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