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8 Aug 2015

A GROWTH ORIENTED PAPER COMPANY


Hi Friends,  Ruchira Papers Ltd:(42.50/-)   This is the time for allocation into small and mid caps vs large caps in your portfolio.  Large caps generally (not always) mirror the index movements and  small and mid cap stocks have greater chance of becoming multi beggars.  If you see the trend over the last 12 months, small and mid caps have outperformed the large caps by a huge margin.  Therefore you keep at least 40% of your investments in small and mid cap.  This blog give you fundamentally strong small cap and mid cap shares in different industries.   Ruchira Papers incorporated in the year 1980, Registered Office at Himachal Pradesh& Administrative Office at Haryana.  Their main products are writing paper and Kraft paper.


The main infra-structure required for manufacturing paper are power, fuel and water.  In the Kraft plant 100% power supply is from H.P. State electricity board.  In writing and printing plant, the company has set up 7.2 MWH power co-generation plant.  So it is uninterrupted power supply.  Fuel – using Bio Mass Gas.  It is freely available near plant.  Water – All the plants have sufficiently available ground water.


Financials:  Market Capitalization – 95.25,  PE – 7.43,  Book Value – 48.51,  Dividend  - 12%,  Industry PE – 18,  EPS – 5.72,  Face Value- Rs.10/-.  Total Sales in Cr. for the period from 2011-2015:  254.02,  284.28,  297.41,  320.13,  346.56.   Net Profit in Cr. for the period from 2011-2015:  4.01,  7.59,  16.45,  15.28,&  12.83.  Equity Share Capital – 22 Cr..  Reserve excluding revaluation reserve – 82.86Cr.,   Dividend – 10% in 2013,  12% in 2014,  13% in 2015.


Share Holding Pattern:  Promoters – 59.51%,  General Public – 30.87%,  Other Companies – 3.43%,  Financial Institutions – 3.36%,  Foreign NRI – 1.72%,  Others-  1.10%.     Company Efficiency:  Return of Equity – 15.92,  Return of Assets – 5.98,  Return on Capital employed – 17.17,  Gross Profit Margin – 11.59, Operating Profit Margin – 15.23,  Net Profit Margin – 4.74,  Debt Equity Ratio – 1.01,  Cash flow to Long Term Debt – 2.75.


Ruchira Papers Ltd. incorporated in the year 1980 is a small cap company (having a market cap of Rs.93.05 Cr) operating paper sector.  Ruchira Paper Ltd. Key products /revenue segments include writing paper which contributed Rs.199.73 Cr. to Sales value – 61.72% of total sales - , Kraft paper which contributed Rs.123.10 Cr. to sales value – 38.04% of total sales -, other products which contributed Rs.0.73 to sales value – 0.22% of total sales – for the year ending 31.03.2014.  For the quarter ended 31.03.2015, the company has reported a stand alone sales of Rs.88.94 Cr.up 8.10% from last quarter sales of Rs.82.27 Cr.and up 3.97% from last year same quarter sales of Rs.85.55 Cr.  Company has reported net profit after tax Rs.3.66 Cr. in the last quarter.  This is  a growth oriented small cap company.  Consider for Long Term investment.


Good Luck.                                                                  See you later.

6 Aug 2015

AN ANIMATION SHARE AT CHEAP PRICE


  Hi Friends,  DQ entertainment (international) ltd. is a Hyderabad Based Company.  (BSE Code – 533176,  NSE- DQE).  DQE is an animation, gaming , live action entertainment, production and distribution company with among st the largest animation production capacity for television, Feature Films,
  Home Video, Online Game Art, Visual effects, mobile and next generation console games.  With in-house skills set over 2700 production associates, they claim that DQE can be considered as one of the largest animated content production house in the world today.  DQE has grown into a fully integrated production and distribution group distinguished for its corporate governance, adherence to the highest quality and one of the first companies in the industry to receive the ISO 9001-2000 certification by DNV Norway, for its sophisticated production and delivery system.


DQ has been recognized as an organization that fosters excellence and encourages quality and creativity.  DQE has received over 35 awards including an EMMY  for Tutenstein animated TV services and several others such as the Red Herring Top 100 private companies Asia, E & Y Entrepreneur of the year award.  DQE was also awarded the prestigious ”International Studio of the Year” at the 16th ceremony of Cartoons on the Bay, Italy 2012.  DQE with the subsidiary DQ Entertainment Ireland Ltd. and investment in Method Animation France, has considered its position as one of the major producers of animated IPS for global distribution and licensing.  DQ has also successfully collaborated with several state goods through knowledge sharing partnerships in West Bengal, MP and Rajasthan.  DQ Entertainment is deeply committed to impart world class training in Animation, Game creation and Film making in India.  DQE’s state of the art gaming division based in Hyderabad produces Assets and motion video creations for next Generation Console, PC, mobile and online games.  The Company’s focus markets are primarily in Europe, U.S.A. and Canada followed by Asia, Middle East and Latin America.  US surely has moved forward from subdued conditions while Europe is still under recessionary conditions though production improvement have been seen in France, Germany, UK and Italy.They remain optimistic with US and Canada leading the growth path for TV and animated features  film markets which this company is taking full advantage.


Financials:  Equity Share Capital – Rs.79.28 Cr.,  Market Cap – 165.70,  EPS – 3.66,  PE – 5.71,  Book Value  of shares – Rs.57.10,  Industry PE 45.70,  Face Value of Shares Rs.10/-,  Share Price Rs.21/-.  Total income from operations in Cr. for the period from 2011-2015:  161.70,  199.80,  198.81,  179.81 and 181.57.  Net Profit in Cr. for the period from 2011-2015:  14.05,  26.80,  27.06,  36.36 and 29.00.  


Share Holding Pattern:  Promoters including foreign promoters – 75%,  General Public – 14.51%,  Other Companies – 8.01%, NBFC & MF – 1.56%,  Foreign NRI – 0.70%,  Others – 0.23%.  Recommended for long term.    


see you later.

5 Aug 2015

HINDUSTAN MEDIA VENTURES LTD

Hi Friends,  Originally the Company was incorporated in the year 1918.  Subsequently, the name of the company was changed to its present name – Hindustan Media Ventures Ltd. to reflect the expanded business activities during the year 2008.  It is a mid cap company having a market cap of Rs.1768.06 Cr. operating in paper and periodical sector.  They are first in New Delhi and second in Bombay.  They have Hindi daily and English Daily News Papers.


FinancialsEquity Capital – Rs.73.39 Cr. , Market Cap –Rs.1768.06 Cr., Price of Share Rs.240/-, P/E – 11.89,  EPS – 20.26,  Book Value Rs.102.20,  Dividend – 12%,  Industry PE – 18.05,  Face Value of shares – Rs.10/-,  Reserve excluding revaluation reserve Rs.665.27 Cr.,  Gross Sales for the period from 2011-2015 in Cr. – 520.35,  598.18,  636.27,  729.72 and 818.58.  Net Profit in Cr .for the period from 2011-2015 -  53.60,  65.35,  84.52,  111.21 and 140.86.


Company ability :  Fixed  Assets turn over – 23.63,  Gross Profit Margin 23.80%,  Net Profit Margin 15.23%,  Debt Equity ratio – 0.20, Cash flow to long term debt – 2.45.
Shareholding Pattern : Promoters – 74.91%,  NBFC/Mutual Fund – 12.74%,  Foreign Institutions – 5.42%,  General Public – 3.69%,  Other Companies 2.63%,  Financial Institutions – 0.34%,  Foreign NRI – 0.22% and others – 0.05%.


Hindustan Media Ventures Ltd. Key products/Revenue segments include Income from Advertisement which contributed Rs.529.98 Cr. to sales value (72.62% of total sales), Journal/publications which contributed Rs.178.16 Cr. to sales value (24.41% of total sales), scrap which contributed Rs.10.85 Cr. to sales value (1.48% of total sales), Waste/scrap which contributed Rs.10.85 Cr. to sales value (1.48% of total sales), Job work which contributed Rs.9.94 Cr. to sales value (1.36% of total sales) , other operating Revenue  which contributed Rs.0.79 Cr. to sales value (0,10% of total sales) for the year ending 31.03.2014.


The company published excellent result for the quarter ended 30.06.2015.  Sales – Rs.221.51 Cr.ie up from11.14%.  Operating Profit – Rs.52.29 Cr. up 25.52% EBITDA 54.50, Net Profit – 41.71 up 7.11%,  EPS – 5.68.


Hindustan Media Ventures Ltd. is the publisher of English Daily  “Hindustan Times”and Hindi Daily “Hindustan”.  They are first in New Delhi and second in Bombay.  They are publishing many more weekly and monthly periodicals.  Around 95 lakhs readers to their publications.  In Advertisement field they are  in a top position in Utter Pradesh, Bihar & Bombay.  Assembly elections will take place in Bihar and U.P with in the next 24 months, that will be a better chance to increase their advertisement earnings 20 to 30%.  So there are chances for capital appreciation in the coming years.  Try your luck.


Thanking you,                                                              see you  later.

4 Aug 2015

INVESTOR DOUBT CLEARED




 Hi friends, Inflation:  A simple explanation of inflation is that it refers to a situation where too much money is chasing too few goods.  Inflation indicates  a rise in the price of goods and  services.  Along with the growth of GDP, if the inflation rate also increases, then the real rate of growth would be very low.  Inflation and stock markets have a very close relationship.  If there is inflation, the stock market is adversely affected.  The price of stock is directly related to the  performance of the company.  Inflation typically results in the following:  1.  High raw material cost.  2. Non-availability of cheap credit due to rise in interest rates.  3.  Low earnings.


Infrastructure Facilities:  Good infrastructure facilities affect the stock market  favorably.  Infrastructure facilities are essential for the growth of the industrial and agricultural sectors..  A wide communications network is a must for the growth of the economy.  Regular supply of energy without any power cuts will enhance production.  The banking and financial sectors should also be strong enough to provide adequate support to industry and agriculture.  In India, even though infrastructure facilities have been developed, they are not enough.  The government has liberalized its polity for the communication, tra nsport , and power sectors.  For example, the power sector has been opened up to foreign investors with assured rates of return.


Monsoon and Agriculture:  In spite of technological advancements, Indian agriculture still depends heavily on the monsoons.  Good monsoons are a boon for agriculture.  Agriculture is directly and indirectly linked to many industries.  For example, the sugar, cotton, textile, and food processing industries depend upon agriculture for raw materials.  Farm equipment, fertilizer, and insecticide industries supply the inputs used in agriculture.  A favorable monsoon leads to higher demand for these inputs, a bumper crop , and more disposable income in rural areas.  This leads to  buoyancy in the stock  market.  When the monsoon fails, agricultural production and hydro power generation decline.  They cast a shadow on the share market.


Buyers’ bargaining power:  Here, customers of the industry’s product are referred to as buyers.  A strong customer can demand a higher quality product or service for the same price.  If they cannot get that, they may move over to other similar products.  Usually, the more the number of customers for the industry’s product, the less their commercial power over it.  If the number of producers is high, they can switch from one to the other.  When the products are similar and standardized, the possibility of a switch is high.


Earnings of the Company:  The earnings of a company decide its stock value in the market.  The company pays dividends from its earnings.  Growing earnings result in high valuation of the stock.  Sometimes, the prices of a stock may be high but not the earnings.  This is because the market anticipates a future rise in the earnings of the company.  In simple terms, earnings are the operating profit of the company. The income for a company is generated through operating sources and non operating sources. The source of operating income vary from industry to industry. For the service industry no tangible products is involved and income is generated through the sale of services. Take the case of commercial Banks, its income is the interest on loans and investments. Interest income is refereed to as the operating income. But in the case of industries producing tangible goods, earning arise from the sale of goods.


Good luck.                                    see you later;
 
 
 
 
 
 
 
 

3 Aug 2015

GENUS POWER INFRASTRUCTURES LTD

Hi Friends,  Genus Power Infrastructures Ltd., an ISO 9001 & 14001 Certified Company in an integrated part of the US$ 400 million Kailash Group.  Genus has three business divisions offering innovative and sustainable solutions to the power sector.  Their product/services are : a)  Switch Yard/Subtraction installation  - b) Transmission lines – c) Rural electrification and  - d) Distribution lines HVDS.  The Metering Solution Division provide a complete range of electricity meters such as Multinational single phase and Three phase meters, CT operated meters, ABT & Grid meters, DT meters, Pre-Payment meters, Smart meters, AMI, MDAS etc.


The Company incorporated in the year 1992, is a small cap company having market cap of Rs.710.02 operating in electronic sector.  Genus gas become a global brand and one of the most admired companies in providing smart metering solutions.  Genus has also come a long way in execution of turnkey  power transmission & distribution projects and is expected to be one of the largest beneficiaries of the Narendra Midi's Govt. plan to revive growth by shoring up infrastructure, especially power infrastructure.  Their R& D converted the ideas into reality and brought new products for use by the community.  Genus is now a well known brand among SEBS and other power utilities.  They are expecting 15% growth in the coming years.


Financials:  Share Price Rs.27/-, Equity Capital Rs.25.67, Market Capitalization Rs.710.02 Cr., EPS  2.07,  PE  13,  Industry PE  25.60,  Face Value of shares Re.1/-, Dividend  20%, Book Value Rs.18.96,  Reserve excluding revaluation reserve Rs.461.51 Cr.  Gross Sales in Cr. for the period from 2011 to 2015  :  716.47,  683.51,  652.34,  765.52 and 915.  Net Profit in Cr. for the period from 2011 to 2015 :  61.08,  23.78,  44.57, 60.47 & 53.12.


Financial Efficiency:  Return on Equity – 13.95,  Return on Assets – 7.43,  Return on Capital employed – 9.51,  Fixed Asset turn over – 1.02,  Gross Profit Margin  12.32,  Operating Profit Margin – 13.70,  Net Profit Margin – 7.84,  Debt Equity – 0.06,  Cash flow to long run debt – 4.16.


Share Holding Pattern:  Promoters – 50.58%,  General Public -  36.51%,  Other Companies – 8.31%,  Foreign NRI – 3.78%,  Others 0.37%,  Financial Institutions – 0.33%  Foreign Institution – 0.07%,  NBFC and FF – 0.04%.


Genus key product/Revenue segments include Electric Meters  which contributed Rs.757.88 Cr. to Sales Value (96.62% of total sales),  installation charges which contributed to Rs.24.75 Cr. total sales value (3.15% of total sales),  Scrap which contributed Rs,1.42 Cr. to Sales value (0.18% of total sales), export incentives which contributed Rs.0.34 Cr. to sales value (0.04% of total sales) for the year ending 31.03.2014. 


For the quarter ended 31.03.2015 the  Company has reported a stand alone sales of Rs.296.79 Cr. up 40.50% from last quarter sales of Rs.211.24 Cr. and up 39.83% from the year same quarter sales of Rs.212.25 Cr.  Company has reported net profit after tax of Rs.24.42 Cr. in last quarter.  Genus has an ambitious expansion plan and their debt equity ratio is 0.06, the share price will be increased to double with a  two year investment portfolio.


Wish you Good Luck;                                          see you later.                                                                                                                                                                                                                                                 

2 Aug 2015

TIME FOR MID CAP & SMALL CAP SHARES

Hi friends, After a smart surge in first half of 2014. The mid-cap index has moved in a narrow range. The reasons were many of this to happen. Many of the mid-cap companies in the first half of 2014 surged dramatically, and hence a further rise in their market caps needed strong fundamentals and performance. But India Incs earnings did not expand as much as everyone expected and that impacted the sentiments on mid cap too. Also most of the mid caps have less bargaining power with their lenders due to their small size. Last year many investors thought that RBI would be aggressive in terms of slashing rates that could benefit mid-caps much more but that did not happen either the market changed strategy since September from Risk on to Risk off.  When there is a Risk off sentiment, mid-caps are less in demand thereby impacting price appreciation.


But the last few days in the market suggests that risk off strategy is again gaining strength.  That should make more investors chasing mid-caps stocks again.  Also RBI in 2015 has so far cut the rate three times by reducing the repo rate by a total of 75 basis points.  But the transmission of these rate cuts did not happen in the first few months of 2015.  But recently banks and financial institutions have started reducing base rates and that should help the cost of borrowings for mid-caps to go down and also help improving their top lines due to better demand in the economy.  After the earlier smart surge in many of the mid-caps stocks, a pause was necessitated and that is now past.  In that sense a time correction has taken place in mid-caps & small cap making them ready for next upside move.  I believe that in the next 1 month, it would again see mid-caps & small caps moving faster than large caps.  Eventhogh it is a type of gambling, but there are possibilities to move the market higher in long run.  So if you invest in good small cap/mid cap shares for 2 to 3 years your return will be higher than large cap shares.  In this blog I shall give you fundamental details of good small/mid cap shares..  You invest and try your luck.


Thanking you,                                                                          see you later.