Tuesday, 9 December 2014

VALUE PICK - VIDHI DYESTUFFS MANUFACTURING LTD.


About The Company
 Vidhi Dyestuffs Manufacturing Ltd. is a Mumbai based Asia's 2nd Largest food colour manufacturing company, Founded by Maneks the company is listed on BSE.
VDML is ISO 22000:2005, ISO 9001:2008, HACCP, Halal & Kosher certified.
VDML is also FDA registered, It has been audited and found satisfactory by the FDA .
  
About Business
The company is actively manufacturing and exporting wide range of Synthetic Food Colors, Lake Colors, FD&C Colors, FD&C Lake, D&C Colors.

More than 90% of the colors are exported worldwide across all continents, It's products are used obviously in food sector such as Confectioneries, Beverages, Processed Foods, Bakery Products, Dairy Products, Pet Food, Their products also serve recession immune industry like "PHARMA".
The Ace Investor – Value Pick
(BSE:531717) VIDHI DYESTUFFS MANUFACTURING LTD.
This company is in same industry as our earlier pick "DYNEMIC PRODUCTS".
Trading around Rs 15.90 with a market cap of under 80 crores.
Current P/E is around 9 and Promoter Holding is strong at 64.32%.

The company as remarked earlier is Asia's largest food color manufacturer and exporter, Dynemic Products our earlier pick is the only listed competitor that Vidhi has, Vidhi as of now is bigger than Dynemic in terms of size and smaller in terms of Market Cap, i.e. the Market Cap of  Dynemic is 95 crores against 80 crores of Vidhi, While Dynemic's annual sales for FY14 were at 116.97 crores and Vidhi's annual sales for FY14 were at 142.76 crores.

  Being Asia's largest and India's largest food color manufacturer and exporter and trading at P/E of 9 looks extremely cheap given the strong prospects of the sector, with growing demand for food colors and ofcourse the booming pharma space which is immune to recession and provides great opportunity for FDA registered companies like Dynemic & Vidhi.

Looking at financials too this is an excellent value pick, Right from FY10 the company has shown excellent financial performance check out the annual results attached below.

Narration
Mar 10
Mar 11
Mar 12
Mar 13
Mar 14
Trailing
Period
12 months
12 months
12 months
12 months
12 months
12 Months
Sales
70.52
98.62
114.54
119.99
142.76
156.39
Operating Profit
4.78
7.66
9.53
12.31
16.06
19.77
OPM
6.78%
7.77%
8.32%
10.26%
11.25%
12.75
Other Income
0.07
1.56
0.22
0.33
0.38
0.83
EBIDT
4.85
9.22
9.75
12.64
16.44
20.60
Interest
1.16
2.26
3.80
4.55
5.34
5.76
Depreciation
1.00
0.92
0.94
1.73
1.97
1.70
Profit before tax
2.69
6.04
5.00
6.36
9.12
13.14
Tax
1.59
2.35
1.63
2.21
3.15
4.45
Net profit
2.85
3.68
3.37
4.15
5.97
8.73
Adjusted EPS
0.57
0.74
0.67
0.83
1.19
1.75

As you can see right from FY10 to trailing FY15 the performance of the company has been superb.
In FY10 the OPM was at 6.78% and now the OPM has reached 12.75%, Consistent OPM growth from FY10 to trailing FY15 is a wonderful thing for any company.

As our earlier export driven picks SKM EGG, DYNEMIC PRODUCTS,NGL FINE-CHEM are doing wonderful, This company "VIDHI DYE" is another export driven gem.

The whole sector (Food Colors) is going to go through a huge re-rating in the mid-long term, Both Dynemic & VIDHI are wonderful value picks.

I take this opportunity to also repeat DYNEMIC which was blogged at 75 and had rallied to 100+ and now settled around 85-90 again, Still Dynemic with its upcoming Dahej plant expansion is trading no where near its VALUE, Both the stocks Vidhi & Dye are value picks of the extreme level and me and you cannot even imagine at what levels are they going to trade in the long-term.

remember Avanti Feeds used to trade at the price of 30s in 2011 and now trading at 1800+  a lot of intelligent value investors had bought a good chunk of Avanti Feeds and today we can see their patience and analysis paying off, Same is with Vidhi Dyestuff & Dynemic, Both are multibaggers not to be missed.

Coming back to Vidhi, it is trading around 15.90 with a P/E of of 9 and its Market Cap to Sales ratio is just around 0.50, With a little bit of Debt on the books which is nothing when compared to the prospects, It has fully pledge-free promoter holding of 64.32% and just 1 fellow BSE listed competitor.

Hope above inputs have made it clear that VIDHI is an excellent value pick, Here's requesting all value investors go for VIDHI DYESTUFFS MANUFACTURING LTD.

134 comments:

  1. Thnx for the new Gem ... Its already rocking in UC while sensex is down 300+ points :-)

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  2. Fantastic pick .. Got few in dying moments.... Thanks ace

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  3. Fantastic pick hold for a year tgt 150+

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  4. Thaks for another gem ace... Great pick indeed

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  5. Our blog is fully in line with SEBI regulations as we have applied and have time till 29th May 2015.

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  6. Good rock solid fundamental pick. Buy Vidhi Dyestuff for 1 year time frame and get good returns in multiple times. Thanks ACE for recommendation of this gem for small investors like me.

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  7. wao seeing the company financials and performance it looks great pick .i had purchased today and hoping for multiple return in this gem . Kudos to ace for finding out this gem .keep on this great work . i hope it willgive multiple return like kiri industries .

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  8. thanks for value pick. Sir i would like to know yoyur view on Premier Explosives and Control Print. Sir i want to add CCL products at this moments. cAN You give your view on it.

    ReplyDelete
    Replies
    1. Control Print seems good, i don't have any call on Premier and CCL as told in past.

      Delete
    2. Thank you very much for your view and reply. Sir i have SKM which is 50% of my portfolio recently purchased at higher price. Good that it has not fallen much even after looking at so-called correction in last 2 sessions. Sir i would like to know your view whether i add more or what level you think this stock can move to. thanks in advance.

      Delete
    3. sir awaiting your reply on SKM pls...

      Delete
  9. Sir...what about mindteck i am holding at 74 and its cmp is 66
    Should i exit???

    ReplyDelete
    Replies
    1. mindteck posted at 67 trading around the same level, hold.

      Dont expect stocks to double in a day or two, stay realistic.

      Delete
  10. Expecting exponential upmove from cmp.. This is a great pick

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  11. Expecting exponential upmove from cmp.. This is a great pick

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  12. VIDHI at upper circuit, Cheers... Those who feel we have copied need to recheck their facts:-

    1) We have had this report prepared when we gave Dynemic, We only had to edit a part of it due to price movement.

    2) We were not aware of other blog and we checked it out after giving the call.

    3) Reason to give the call now was increase in the prices and volume which drew our attention back to the stock.

    4) The other bloggers clues don`t match the stock., Though i am not sure about clues as i didn't go through it carefully even if it is the same stock then two analysts can spot the same stock at the same time it can be a mere co-incidence due to increase in price & volumes.

    5) Regarding our blog's name, Ignorants need to know we have not copied any name and it is our company's name since 2006.

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  13. brilliant call ace sir
    vidhi is locked in upper circuit

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  14. Gr8 call.... Looking forward for sme more gr8 calls ...

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  15. Hi,

    According to you , till what range one should chase this stock in the current move ?

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  16. I believe this will turnout to be multibagger..

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  17. super value pick i have bought. . . this is definitely a 10 bagger

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  18. Another day of UC. Great going vidhi... Going to hold this script for long. I'm sure many more UCs in coming days... Good blz

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  19. Fantastic performance buy Vidhi...thanks to theaceintors for recommendation of this gem. I am waiting for more stock recommendations like this..congratulations......

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  20. This is really a very good fundamental pick. Many many thanks to theaceinvestors for recommending this stock. I am eagerly waiting for new pick..all the best....

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  21. sir, thx for dis gem..wht is the target price and how many yrs shuld i hold it? thx

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  22. sir ur view on ahmednager forging,tanla,trident as i have bgt at 520,19,31can i hold them

    ReplyDelete
    Replies
    1. (1) Ahmednagar Forging looks great, hold it, you can add more here for long-term.

      (2) I do not have a call on Tanla as of now, However the industry tanla operates in has good potential,it is to be seen if they can capitalize on it or not.

      (3) Not a lot has changed for textile sector and at market cap of 1200 crore+ I don't think TRIDENT is a good bet.

      Delete
  23. hello ace sir,
    you are doing great work for small investors like us. pls keep going and teach us the paramaters to identify multibagger stocks.
    pl suggest about ybrant digital as i am holding it @63. i can hold it for long term but i need your present views on the same.

    thanks

    ReplyDelete
    Replies
    1. Already blogged about Ybrant Digital around 53, Its a buy and hold stock with great potential.

      Ybrant: http://theaceinvestor.blogspot.in/2014/10/value-pick-ybrant-digital-ltd-lycos.html

      Delete
  24. i want to draw your attention to birla cotsyn..As company is in textile buisness..Whats your view on this? Its in a same range since 3 years..Will it give any returns in near future? holding since 6 months ago..

    ReplyDelete
    Replies
    1. I do not like the textiles sector, the problems are not over as of now.

      Delete
  25. Ace, I think you have done a great job here by giving a chance to people who work hard, show passion, gain conviction and buys before jumping on to recommendations. This will help passionate investors invest early and gain more benefit. Keep this up please.

    I think quite a few people has got the stock and its evident in its price | volume movement…wont say anything more…Thanks again.

    ReplyDelete
    Replies
    1. Thanks, We stay committed to post during the market even in the future!

      Delete
  26. Ace – You must have created enormous amount of wealth (all recos put together) for ordinary lives. You have touched their lives. Deepest gratitude to you from me and on everyone’s behalf.

    ReplyDelete
    Replies
    1. Credit to the investors rather, I am just an investor sharing my stocks its upto other investors whether they analyze and like/dislike it.

      Delete
  27. I like your thinking.
    I like this way of recommendation.
    It will make the investor confident before investing in a particular company.
    Investor will research about the company before investing which will scale up the conviction.
    Real long term investor will make a good entry point.
    And the recommendation provider will not be targeted/questioned for any loss (if any) .
    Investor has not borrowed the idea he has researched it .
    Hope your further recommendations will also be in the same manner.
    Thank you

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  28. Congrats!! It shows you have got good understanding in shares. Can you please give us some idea how did you do the research, so that we can also learn something.

    ReplyDelete
  29. Sirji, I really thank you for your recommendation and you have made life of ppl following easier and richer. As you said you are not research analyst so the rules does not apply to you to express your views here on your blog. You can always use this platform to talk about company you believe in rather than gving buy or hold call.

    Is that not possible?

    ReplyDelete
    Replies
    1. This blog will remain as it is, Don't worry.

      Delete
  30. Sir, your commonsense method as against data crunching method has got you more success and followers than the conventional research analysts. The commonsense approach appealed also to a lot of investors like us who could make more sense of it than we can from the chart filled research papers. We will miss your blog recommendations immensely. We are consoled however by the fact that we can follow you on MMB. Yet we harbour the hope that someday soon SEBI will reconsider its restrictions and relax them and you will be able to give full fledged recommendations in your earlier way.

    ReplyDelete
    Replies
    1. We are not going anywhere, This blog will remain up.

      Delete
  31. Lots of people here claim that they benefit from your research as they research the stocks you recommend and then buy them. But I feel that there is a very small proportion that actually does research.

    I worked as a research analyst for a while and also invest in my personal portfolio. Your level of research just amazes me. I am curious to learn about your investment process. I realize you may not want to share the process but advice on how one should go about filtering stocks might actually benefit people like me who do their own research. In short, I'm hoping you might be able to guide us on what a good filtering process should contain, on how exactly do you do fundamental analysis. Do you maintain excel models? I know you talk to management of companies but any thoughts on this matter would help.

    I guess what I'm trying to say is I'm really keen to do my own research on a stock but often get stuck with a starting point on how to identify a list of stocks before actually doing in depth research. Your experience makes it easy for you to start but how did you approach the process when you started 24 years back?

    So my request to you is to please provide us with some insights and share your wealth of experience with us. I feel this would be a lot more beneficial to people who actually want to do their own research rather than those who blindly follow your recommendations.

    I hope you will publish this and also provide some answers. No guidelines can restrict you from sharing your thoughts on a process in this blog.

    Thank you in advance,

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  32. Sir i just start following your blog and hereing this news is very socking....
    now please help me i just started investing in A group of companies...
    i requesing you to please suggest me good scripts...

    ReplyDelete
    Replies
    1. What is "SOCKING"???
      A group B group or Z group it doesn't matter, Please keep the goal to make money.

      Delete
  33. Hello ace sir,

    Your view on Pioneer embroideries Ltd?

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  34. UC in Vidhi ... i guess 30 should come easily now :-)

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  35. What is ur views on Godavari Drugs

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    Replies
    1. Sales n Profit jump in last 2 quarters surely is eye catching but their product portfolio is not looking good.

      Will try & gather info about the earnings jump.

      Delete
  36. Sir,
    Your view on Richa industries?

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  37. Sir what do you make of the latest IIP numbers that have been a shocker and a disappointment? How will it affect the markets in the week to come?

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    Replies
    1. Like past, this time too Nos will have an impact max for a day or two.

      Delete
  38. your call on titan biotech please?

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  39. Sir salzer is having about 18% export sales and their debt to equity is over 0.50
    what do you say about this company?

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    Replies
    1. Are you asking me or are you giving me info?

      Delete
    2. want your view on salzer electronics

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    3. Holding small qty at lower levels, Havent kept up with company performance, Will check out

      Delete
  40. HI,
    Can I enter into Lakshmi Electrical and switches Ltd & Natural Capsules Ltd at the curent senerio anf fundamentals.

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    Replies
    1. no call on lakshmi ele. and natural capsules is under research if anything extra-ordinary is found will update.

      Delete
  41. Hi holding huge quantities of SKM EGGS for long term @ 91 will it be a huge multi-bagger in long run or will it it just double. Kindly brief on this niche company.

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    Replies
    1. it will obviously double before becoming a multibagger.

      Delete
  42. dear sir,
    your view on national fittings

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  43. sir your take on CMP of SKM. Should i add (presently SKM is 25% of my portfolio) it to average cost or sit tight.

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    Replies
    1. What is your purchase price? My friend averaging doesn't mean buying at every 5-10% dip, If you are an value long-term investor go for averaging only if there is a 30-40% fall without any reason.

      Delete
    2. My purchase price is 110. I have good chunk of SKM in my portfoilio. Really worried but tension free as business is best and promoters are also good.

      Delete
    3. Be patient and please hold SKM, already replied to you earlier on 11th.

      The Ace Investor 11 December 2014 at 14:11

      Hold & Forget SKM for 2-3 years
      Delete

      Delete
  44. Hi Ace I have emailed you with my portfolio details.Kindly advice you best long term views.

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  45. Hi Ace if u had to choose between waterbase and VIdhi dyestuff which would you prefer on long term basis.

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  46. hello ace sir,

    pls share your views about ybrant digital?? i am holding it @64.will it be a potential multibagger bet in long term.

    thanks

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  47. dear ace sir i found a name THE ACE INVESTO in mmb blog is it your id in mmb i found lot of usefull info about vidhi and salzer in this profile kindly confirm :)

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  48. When is your next pick?

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  49. sir ur views on required on Lumax Industries
    Lumax Auto Technologies both are having negative working capital

    is this right
    Negative Working Capital essentially means that the company is able to pre-sell its products and gets a decent Credit from its Supplierswhich help it to grow its Business without any Capital requirements.

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    Replies
    1. Sorry i have not studied the two counters.

      Delete
  50. Sir your view on JBM auto

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    Replies
    1. As replied to Namita on Mindteck post, 158 is good support.
      Good stock for long-term.

      Delete
  51. I have followed other blogs and got caught up in manipulation

    I had this in my mind since long time but today is the best day to say this as one stock of another blogger has hit lower circuit in which he has indulged in clear front running and manipulation.

    thank you theaceinvestor for clearly posting research reports during market hours and not fooling around with us like other blogs.

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  52. Sir why dont you start guess the company sort of thing?

    ReplyDelete
    Replies
    1. See what has been done to the other Blogger's followers

      Delete
  53. Sir
    What is your view on tci finance.

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  54. Hello ACE Investor ,

    can u pl throw some light or share ur view of guessing stock lika (valuepick GTS) n (Name the GEM in aceinvestortrader)

    as they announced quiz in their blogs n take long time to announce results , even sm time 8-10 trading session

    in between some professionals who get the stock in an hrs or in minutes get advantages by accumulating in big qty n sell on rise or on result announcing date ... dont u think it is a wrong way to circulate shares in public ... who knows quiz manager also take advantages of it

    and printing lots and lots of bucks n became billionaires by our money

    same thing happens in SALZER n Pressman Adv.

    in waiting for ur kind reply


    SACHIN

    ReplyDelete
    Replies
    1. We are not introducing any guess the company type of thing our posts will continue to be normal research and during market hours.

      Delete
  55. Sir you view on syncom formula

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    Replies
    1. Its a good gamble not a pick for value investors.

      Delete
  56. Hello sir , what your view on v2 retail for a longterm investment ?

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    Replies
    1. As told earlier on the blog i don't like the stock.

      Delete
  57. Sir, There are many small investors like me who can spare only small amount 5000 to 10000 per month not huge lump sum. Plz guide how should I/we invest such amt in stock market for 8-10 years.Which stocks to buy in SIP manner

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  58. Srigopal Telangana25 December 2014 at 16:28

    Sir when will you post next pick?

    ReplyDelete
    Replies
    1. On Friday at 3:20 PM and if not then on Monday at 3:20 PM, It is one rare gem!

      Delete
    2. Alphabet is correct, not the stock... Research in final phase will be posted either after 3:20 PM today or else on Monday.

      Delete
  59. Replies
    1. I am bullish on KTIL, don't have target and time frame though.

      Delete
  60. How can I follow ur blog by receiving mails

    ReplyDelete
    Replies
    1. Introduced follow by Email option, Top-Left abv Facebook widget.

      Delete
  61. What is your views on Kesar Terminal?

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    Replies
    1. As replied above i am bullish on it but don't have a target or time-frame.

      Delete
  62. R u going to post new gem

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  63. Fresh super value pick will be posted after 3:20:00 PM Today.

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  64. UC today 10% ...circuit is revised.....

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  65. Y suddenly UC ,that too 10% should i book profit or hold ?

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  66. just came across ur blog and the only thing I can say was it is awesome. Can I enter skm, vidhi and dynemic now?

    ReplyDelete
  67. How abt Almondz Global Securities?

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  68. Hi ACE, any view on above?

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  69. Could you compare Vidhi Industries over Asahi Songwon Colors & Sudharsan chemicals, Please enlighten us how you have picked Vidhi over the others.

    ReplyDelete
    Replies
    1. Both vidhi and dynemic are food color companies while asahi has no food color business.

      Delete
  70. Hello Sir after recent consolidation in Vidhi is it good time to enter? Planning to invest for long term

    ReplyDelete