VIDHI DYESTUFFS MANUFACTURING LTD
Vidhi Dyestuffs Manufacturing Ltd posted on the blog at 15.90 on 9th December 2014.
Company has announced March 2015 quarter numbers, The annual numbers are as follows.
The
numbers are superb: With 32% sales growth and 109% profit growth i don't think there is much to comment about the numbers here, all I can say is stock is trading at just around 10 p/e and in this sector (Food Color) there are only two listed companies (Dynemic Products & Vidhi Dyestuffs) while Vidhi is the market leader right now, I expect valuation of 20 p/e for both the companies due to lack of opportunity in this sector.
DYNEMIC PRODUCTS LTD
Dynemic Products Ltd posted on the blog at 75 on 7th November 2014.
Company has announced March 2015 quarter numbers, The annual numbers are as follows.
The
numbers are decent: QoQ too the sales have grown by more than 10% to be above 30 crores. The company has an expansion plan (Dahej Unit) and we should read about its status when the annual report comes out. At current price of around 50 the stock is trading at only at
a valuation of around 5-6 p/e while Vidhi is already at 10 P/E, As i have said both these companies should trade at 20 P/E sooner or later.
As of now Vidhi is the sector leader but i expect Dynemic to surpass Vidhi in coming years, Dynemic has reported an net profit margin of 7.32% while Vidhi's margins are at 6.61, Dynemic has already reduced the price for its products this ficsal and still there is chance for Dynemic to reduce its prices further to outdo Vidhi. Dynemic has more of a brand value compared to Vidhi and I got a feeling that Dynemic is a potential multibagger, It also has higher EPS when compared with Vidhi.
All in all we if we take valuations of 20 P/E: Dynemic should be trading around 170 and Vidhi should be trading around 50.
GUJARAT AUTOMOTIVE GEARS LTD
Gujarat Automotive Gears Ltd posted on the blog at 290 on 9th January 2015.
Company has announced March 2015 quarter numbers, The annual numbers are as follows.
The
numbers are decent: QoQ sales have grown by more than 26% and the net profit is up by 70%.
The company had a bad previous quarter which is why the stock had corrected and as I had chatted with the chairman Mr Rajiv Aggarwal and provided an update on the blog (LINK) The results are great QoQ.
As per the last chat, Mr Aggarwal had said that the results going forward are going to be good and the company has launched new products for which the orders will start flowing in two-three quarters, I think Gujarat Automotive Gears is going to have great days ahead.
Meanwhile,
GAGL has maintained the record of paying dividend and the Promoter
stake has gone up sharply in the recent past.. So this is
a great investor confidence building exercise.
Valued presently around P/E of 8, I think Gujarat Automotive Gears Ltd should turn into a multibagger in future with the growth flowing in or rather i should say if the growth flows in.
NARMADA GELATINES LTD
Narmada Gelatines Ltd posted on the blog at 210 on 5th February 2015.
Company has announced March 2015 quarter numbers, The annual numbers are as follows.
Narmada has announced flat annual results and there is nothing much to write about it beside stating the fact that the stock is trading at a valuation of only around 7 P/E while its peer India Gelatine is trading at a P/E of 11 and Nitta Gelatin is trading at a P/E of 20. Narmada should improve from here and we should keep a watch if the company has any plans for capacity expansion in the days ahead if so then expect some action.
Hi Prem
ReplyDeleteRicha topline is gud but bottomline hit by 23% YOY due to interest burden as company shortterm borrowing also increases and also company not declared dividend is a concern and i dnt think any major upside due to this kind of result.Since you know better as it is your research pick and you have much idea about it...please share your views...Thanx
Richa is trading at very valuations against its Peers. Regarding all the financial pointers, these are part of the QnA with management which we will soon be conducting and publishing on the blog.
DeleteSir ur view on camphor and allied product?can i buy at current level?
ReplyDeleteDynemic has continuously fallen since january and now seems to make a base at 45-50.
ReplyDeleteDo you think further downside is possible
Hi, do you think the recent issues in Eurozone can effect Gujarat automotive gears as it has exposure in certain European countries.
ReplyDeleteThanks
Greece forms 2% of total EURO gdp, however the exit is not fully final till it happens lots of twists in the story.
Delete