NFL - Giving value

NFL is a chemical and fertyliser producer. Now in focus as govt allowed methenol mixing in petrol. Co also producer of methonel  out of 3 co. Govt holding 89% holding, sales 7000cr while mktcap 3700 cr., bookvalue37, co has reduced debt on balance sheet, co posses 784 acre land in chambur , its mkt value approx 47000 cr., in  Future co monetize this land and unlock the value, now at record high mkt all stocks are expensive but this stock available at good.price. at 75-77 stock is attractive.for medium to lonf term.

Sintex plastic ltd - Attractive valution

Sintex plastic is one of the top 3 players from india. The co has spread its product portfolio and covered sector like pladtic, auto, defence, aerospace,  etc. Sintex is well establised brand in the market. Promoter bought 1%stack from open market. The stock has good risk reward ratio, available at undervalu price looking to its growth, 80- 82 price is good price to enter for medium to long term.

Vatech wabag -update

Well, i have data that co. Paying dividend since 2012 continously, co. Equity was 5.3 in 2014, in 2015 co gave bonus 1:1 so it became 10. something, co. Has 8000 cr. Order book, co has great room for expand npm, and co is exploring , expanding biz globally and has good brand value. Looking to eps 27 fy 2018, its avalble @ 23 pe, and every good quality command premium and you have to pay.. read this what amrish baliga says on tv.....
Ambareesh Baliga on VA Tech Wabag: The stock cracked about 4-5 percent and that in fact gave me an opportunity to pick up. The main story is water treatment and I think that is a big story going ahead even from a country, even from a global point of view. The company is sitting on orders worth about Rs 8,200 crore or so. But the opportunity size is huge. Namami Gange itself is about Rs 25,000 crore, couple of states, Maharashtra, Karnataka, Tamil Nadu and Delhi, the opportunity size in terms of the tenders, which would be coming that is about Rs 18,000 crore, I am not even talking about the rest of the India. So Rs 43,000 crore just between these, so there is no way VA Tech Wabag will not have worked – clearly the visibility is there at least for the foreseeable 8-10 years.
So again, looking at an EPS of over Rs 38 for FY18, Rs 46 for FY19, I don’t think the downside is very much from here. It may just correct in case the market corrects and I am looking at a price of about Rs 850.
I would place this company a slightly better compared to other company

Diwali pick

Well many of viewers emailed me about diwali pick,  so going to post diwali pick. I cant detail about co.  as posting in hurry but i am sure the co has good business and reputation in the country as well out of country.  The co.  is VATECH WABAG. It is in water solution business and good value picking at 590-595 for the medium to long term.
Happy investing

Vikas Ecotech - Rare Product

This co. was recommended technically  on 24/03/2017  Click Here ,  and stop loss  was given @ 18, The stock has maintained stop loss and never closed below that till today.
 The co. is in good business and its monopoly in making lead free pipe. You can view what CNBC TV 18  interviewed with analyst :

Below is the verbatim transcript of Ravi Kataria's interview to Prashant Nair, and Ekta Batra on CNBC-TV18.

Prashant: What stocks are on top of your mind?

A: Vikas Ecotech is a specialty chemicals player and the company provides the compounds and specialty chemicals which are lead free. It drives majority of its revenue from organotin stabilisers, recycled compounds -- organotin is lead free which is supplied to pipes, manufacturing, engineering kind of industries. This is US FDA approved product, so, that is why it has gained a lot growth in exports over the past say two years’ time. Worldwide we are seeing the regulation being put in place for the usage of chemicals which are toxin free. As a result, we are expecting in India also the government to come up with a regulation for pipes manufacturing which can be lead free.

If that happens as we envisage in over the one or two years’ timeframe, there will be a serious run for the stock because it is one of the few players globally which manufactures such commodity. Its space in recycled compounds, it manufactures certain products from waste cooking oil, it has tied up with Nafigate Corporation in Czech Republic for supplying of technology and when you see these two-three spaces, they have grown from nothing to almost like Rs 50-80 crore in their topline in just last two years’ time.

We are estimating doubling of the topline over the next two years because of one, operating capacity expansion to 50,000 metric tonne in their plant in Gujarat, says opening up in Noida. So, they will see a tickering of their operating margins. There are just four or five which have got this kind of technology in place or the chemicals manufactured. PMC is one, Galata Chemicals is one, couple of players from China, and if we see, their operations in India are limited and cost constraints if we consider, the multiple parameters, the Indian players would certainly go for something like Vikas Ecotech for their long term supplies. As a result, we saw Jayant Chheda also putting up increasing stake from 2 percent to 10 percent in the stock.

Ekta: Your target price is Rs 49 by when?

A: By FY19. It is Rs 27 by FY18 because their Gujarat plant is expected to commission by end of FY18. So, the rolling over of the benefits will come in FY19.

Once the our government  publish  notification to ban lead in making pipe and food packing items, the co. will have sky limit opportunity.

The stock is worth to hold in portfolio only medium to long term view @ price of  21- 21.25. 

Orient Paper Industy - Value Unlocdking

The co. engaged in manufacturing paper. Oreint Electric is  100% subsidiary of this co. The co. has decided to demerge   its electic division. Orient paper ind. holder will recieve 1:1 ratio of Orient Electric. Orient Electric has been established as good Brand. M S Dhoni is brand ambassador of the co. Oreint PSPO and Orient LED tube light has good demand in Indian consumer market. The co. has also started online selling for electrical retail consumable items. Paper co. is also in expansion and has turned around in profit making. Both the division are doing well and will do better in future. The stock is worth to add @ 97-99 price in portfolio for medium to long term As you are going to get Orient Electric share 1:1 for free. Ace investor Dolly khanna also recommended the stock. 

HALDYN Glass - Ready to Clear Glass

The company manufactures empty glass containers used by liquor, food and beverage, pharma & cosmetic industries. Though liquor forms the biggest customer segment, yet, considering surplus capacity created by some of the existing manufacturers, the Company has recently diversified in to production of wide mouth / open jars (through press and blow process) and has reviewed efforts to increase export of its products. Ongoing study has established that non glass food / drug containers are known to have ill effects on human health. National Green Tribunal - keeping environmental issues in to mind, wants curbs imposed on plastic packaging.

Due to easing foreign direct investment policies of India, global business community is bullish on India as an investment destination and is exploring the business relationship with Indian manufacturers. Make in India initiatives along with easing Government policies, may be seen as a turning point in the collective sentiment of a large number of business leaders in India. A recent survey has found next three years to be ‘promising’ from economic growth prospective which would result in significant business transformation. India, being a large untapped market along with young population turning consumers, good monsoon expected to double farmer incomes coupled with MGNREGA / 7th pay commission money coming in to system, would spur consumption demand and would be a force multiplier for the economy. These developments would provide enhanced opportunities to the company. The findings reveal an optimistic side of India Inc which has been reeling under pressure.

The Company operates only in one business segment of manufacturing / supplying of glass bottles & containers. The company’s customers include major pharmaceutical and brewery companies like Glaxo Smithkline Pharma, Bajaj Corp, Hamdard, ADF, Vadilal, Parle Agro, Zydus, Pfizer, Burroughs Welcome, Parke-Davis, Raptakos Brett, Cipla, Hindustan Antibiotics, Wyeth, Novartis, Associated Breweries and Distilleries, Mysore Breweries, UB Group, Camlin, Bajaj Consumer Care, Champagne Indage, Tilaknagar Industries, Empee Distilleries, Shiva Distilleries, Denischem, Amul, Smithkline Beechem, Tablets India etc.  

The Company has successfully completed up gradation of one of it’s furnaces with enhanced capacity. During the process other ancillary facilities too were up graded with latest technologies. The entire capital expenditure was funded through Company’s internal resources. The Company has recently received ISO 22000 certificate for supplying food grade bottles. This will help the Company to strengthen quality parameters so as to become most preferred supplier to the customers. Considering emerging opportunities, Company is cautiously optimistic for coming year’

To counter the surplus capacity available, Company has commenced efforts to increase export of its products and thus faces the risk of forex volatility to that extent. In addition, gas prices being linked to US dollar, the Company is also subject to the risk of resultant forex fluctuations. Other than these, the Company has limited exposure to foreign exchange risks as it mainly operates in domestic market. Apart from normal business risks, the volatility in global economies / BREXIT after effects can impact on developing and emerging economies -like India. The Company had no subsidiary as at the end of the financial year ended March 31,2016.

However it may be noted that on June 23, 2015 your Company entered into a Joint Venture Agreement [“the JV Agreement”] with Heinz Glass International GmbH [“Heinz”], for manufacture and marketing of clear glass containers for the cosmetics and perfumery industries, in India and abroad.

The Company continues its objective of diversification and expansion within it’s core competence area of glass manufacturing. It has entered into a joint venture with ‘Heinz Glass' from Germany to manufacture cosmetic glass. This new joint venture is being executed through a new company called “Haldyn -Heinz Fine Glass Pvt. Ltd.” where both Haldyn and Heinz, have invested equally and have a 50 : 50 equity share holding structure. The joint venture company will manufacture glass flacons for the perfume and cosmetics industry with technical support from Heinz. A large portion of the products will cater to the export market. Commercial production is expected to commence by the fourth quarter of the current financial year.

Looking to industry growth, the stock is attractive PE at 40-42 and worth to hold for medium to long term in portfolio.

Minda Corp - Ready for new auto norms

Minda corp is leading auto parts, accessories and mainly safety devices producers. The co. Has jv with german co, US co. and all its subsidiary doing well. The co has recently inaugrated own research house at pune. International safety auto norms will be comlied by govt. soon. The co is poised to catre international standard parts and safety device fo4 indian market. The baloon bag in 4 wheeler will be mandatory soon. The co posses monopoly in mfg of steering connector which are used in baloon bag. Only 1-2player in india can supply this product, so there is huge room fo4 co to capture mkt. The co has well known client base from india as well internationally. Stock is attractive @108-110 price looking to co growth and auto industry boom in india.

Porwal Auto Components - Strong Promoters

Porwal Auto Components was incorporated in the year 1992 as an ancillary to M/s. Eicher Motors Limited now VE Commercial Vehicles Ltd. (A Volvo Group and Eicher Motors joint venture). Over the years, PACL has registered impressive growth and has established itself as a trusted supplier of Quality Castings and gained recognition from its customers for Outstanding Contribution to Parts Development and Supply Chain Management.
Porwal Auto Components (PACL) is engaged in the manufacture of a variety of Ductile Iron, Grey Cast Iron Steel and Steel Alloy Casting Components and Subassemblies.
The co. has quality client base like Besides VE Commercial Vehicles, the company caters to Force Motors, Tata Motors, JCB, BHEL, TAFE, Eicher Tractors, Crompton Greaves etc.

The co. registered sales of 67.55 and 3.45 Net profit for the current nine month. In FY 2017 expected the company to register sales and net profit of Rs 104.19 crore and Rs 4.64 crore respectively. EPS for FY 2017 works out to Rs 3.1.
The share price trades at Rs 41. P/E works out to 12.8.

Key Financial Ratio             Mar-16

Basic EPS (Rs.)                1.48

Book Value                     34.32

Net Profit Margin (%)      2.70

Return on Networth /        4.31
Equity (%)

Return on Capital              3.81
Employed (%)

Total Debt/Equity (X)       0.15

EV/EBITDA (X)               4.39

Price/BV (X)                     0.59

Looking to the Auto industries booming and strong promoters and good client base the stock is worth to add in portfolio for medium to long term.