Sunday, August 26, 2018


Company :

Gujarat Intrux Limited was established as a Public Limited Company in the year of 1992. Company has set up "Sand Casting Foundry" Project supported by time tested process controls with the help of customized foundry software, making it capable to cast most complex shape in almost any air metal alloys supported by well qualified skilled workforce and engineering support for implementing design alterations, with state of the art CNC machining facility with varying test bench to ensure 100% defect free supply.

 Company is engaged in Manufacturing and supply of Stainless Steel, Non - Alloy Steel and alloy steel Castings. The present production capacity of foundry is 300 tons per month (3600 tones per annum). The company is connected with 1800KVA high tension power Connection. 

Company’s product process includes following :

PATTERN DESIGNING -MAKING AND INSPECTION, SAND DRYING-MIXING AND TESTING , MOULD AND CORE MAKING, MOULD INSPECTION AND COATING , MOULD AND CORE ASSEMBLY, CASTINGS, MOULD KNOCK OUT as Melting shop is equipped with two medium frequency Induction furnaces of 400 & 1000 KW, with varying crucibles of 100kg, 400kg, 900kg, 1500kg and 3000kg. The company have bottom pouring as well lip pouring ladle which accommodate castings size of few kgs to 2200kgs. Company is having certifcates of ISO 9001:2008, PED, AD2000-WO, LLOYD’S, DNV-GL, NORSOK and IBR. These all certificates show the commitment toward Quality Castings and its manufacturing.

Performance :

In the year 2017-18, the production of the company was 1162 tonnes as compared to 914 tonnes in the previous year, (with installed capacity of over 3600 tonnes per annum, leaving enough room for further scalability of 3 times current production), giving capacity utilization of close to 32% only. The Industry has decent demand in the market and will be there in future too. Valve and other allied products are manufactured by using sand casting process by the company. There are also overseas demands of like products and the company is exporting the same. Export Sales is 49% of the total sales and rising, strong US Dollar will be positive for the company. The Company has strengthened its performance stability and now onward focusing to get boost up its growth track.

In the slack market situation, with just 32% of capacity utilization, the performance of the company is very much encouraging, going forward the capacity utilization will increase for next few years giving continuous growth with appreciating US Dollar the financial performance is only going to improve henceforth.

Valuation :

This DEBT FREE company where promoters are slowly increasing their stake, having book value of Rs 120, and having a TTM sales of 38 crore and profit of 4.51 crore giving an EPS of 13 is traded at a PE of 10 times, while industry PE is 19. Rising export and strong dollar along with higher capacity utilization will boost the earnings of the company for the next few years. The company for June quarter, posted best OPM of 23% with ROCE of above 12% which will only increase going forward.

The company can achieve for the FY 19 the sales of close to 45 crore and net profit of 6.5 to 7 crore , giving an EPS of 19 to 20 rupees per share which may further increase upto 26 to 27 rs in FY 20. The dividend of 15% declared by the company signals a better times ahead. The company is available at only 5 times one year forward earning which is attractive for investment for further long term appreciation.

Telegram Channel :

Friday, February 9, 2018

Result Update Dec Quarter 2017 - Ceejay Finance

Result Update Dec Quarter 2017 - Ceejay Finance

CFL reported encouraging set of numbers for the Quarter ended 31-12-2017

YoY : -

Revenue increased by 20% from 3.6 Cr to 4.3 Cr
Net profit increased by 30% from 1.1 Cr to 1.4 Cr
EPS increased from 3.2 to 4.1

QoQ : -

Revenue remained stable at 4.3 Cr
Net profit declined by 11% from 1.6 Cr to 1.4 Cr
EPS decreased from 4.6 to 4.1

December is normally weak quarter for vehicle financing business as buyer's wait to purchase vehicle in the new calender year. Performance is satisfactory and every dips should be utilised to increase exposure.

Sunday, November 19, 2017

Ceejay Finance Ltd (BSE Code: 530789) (CMP: Rs.155.55) (FV: Rs.10)

Gujarat-based Ceejay Finance Ltd (CFL) is registered as an Asset Finance Company – XD NBFC with the Reserve bank of India and is a leading player in Retail Finance since 1993. It is an integrated finance company that provides financial services and specializes in loans for 2-Wheelers, 3-Wheelers, 4-Wheelers, pre-owned and commercial vehicles. With growing business opportunities, it has diversified its finance business to include SME Business Loans, Loans against Property (LAP), Personal Loans, Micro Finance Loans (since 2015). It also acts as an insurance service provider for General Insurance to its clients.

We had recommended this stock at Rs.125 here in July 2017. But the stock looks attractive for the long-term even at the current level based on the excellent Q2 results posted by the company. In spite of demonetisation and GST, CFL posted a healthy top-line and bottom-line on an annual basis and better-than-expected numbers on a quarterly basis.

CFL is likely to report a better quarter going ahead with the rural economy showing signs of recovery on the back of a good monsoon, recovery in sale of farm equipments as well as recovery in the overall economy. Gujarat witnessed record-breaking numbers for 2-Wheeler sales during the Dussehra and Diwali festivals this year and CFL is a leading player in this segment. Even during the forthcoming state elections, a good demand for 2-Wheelers is anticipated.

The CFL stock trades at a P/E of 9.60x on FY18E EPS of Rs.18-20 compared to the industry P/E of over 43.78x. Its RoE and RoCE stand at 14.5% and 25.3%.

Saturday, November 11, 2017

Result Update - Ceejay Finance & LKP Securities Ltd. - 2nd Quarter FY 18

Great set of numbers by Ceejay Finance Ltd :

QoQ :
Revenue from Operation (Net) increases 3%
Pat increases 23%

YoY :
Revenue from Operation (Net) increases 20%
Pat increases 38%

Half Year ended comparision :
Revenue from Operation (Net) increases 25%
Pat increases 46%

Numbers are simply superb considering hang over of demonetization and GST effect.
Ceejay Finance likely to report FY 18 EPS of 18 Rs per share, even PE of 20 should take stock price to 350+ . A screaming buy at current price.

Excellent numbers posted by LKP Sec Ltd :

QoQ :
Revenue from Operation  increases 1%
Pat increases 86%

YoY :
Revenue from Operation  increases 21%
Pat increases 500%

Half Year ended comparision :
Revenue from Operation  increases 21%
Pat increases 380%

LKP Sec Ltd likely to report FY 18 EPS of 1.5 Rs per share, PE of 25 should take stock price to 35+

Tuesday, October 31, 2017

Join the journey of wealth creation on Telegram Channel :

Join the journey of wealth creation with author of Hidden Gems (published in Money Times and Smart Investment weekly.) on Telegram Channel :

Only 4 to 5 stocks a year for long term wealth creation after extensive, yet simple and easy to understand research.

Some recent picks -

Ceejay Finance at 115, buy below 120 and hold for 3 years

Bhansali Eng at 22 high of 145 CMP 139

LKP Securities at 8.5 high of 25 CMP 23.7

Garware Polyester at 121 high of 265 CMP 243

Kabra Extrusion at 133 high of 168 CMP 136

Ram Ratna Wire at 68 high of 186 CMP 178

Pearl Polymer at 24 high of 49 CMP 39.5

FCEL at 16 high of 70 CMP 61.2

GIC Hou Fin at 220 high of 623 CMP 484

Intl Combustion at 220 high of 1140 CMP 558

Prozone at 21 high of 69 CMP 64

KLRF at 55 high of 124 CMP 120

And many more ....To come.

All such stock performed even when the market was bad and down and out performing now.

Telegram Channel :


Monday, July 31, 2017

Result Update - Ceejay Finance

Excellent Numbers released by CFL YoY. June has always been weak quarter. But CFL buck the trend by posting higher revenue and profit.

Revenue up 35%
Net Profit up 65%

For FY 18 CFL can post Net Profit of 6 to 6.5 Cr giving EPS of 17 to 18 per Share.

Wednesday, July 26, 2017

CEEJAY FINANCE LTD (BSE : 530789 FV Rs 10) CMP 125

The Company : Ceejay Finance Ltd (CFL), headquartered in Nadiad, Gujarat and registered as an Asset Finance Company – D NBFC with the Reserve bank of India, is an integrated finance company providing financial services. CFL is a sister company of Ceejay Group, which has been established for over a century and has been a leading player in Retail Finance since 1993, specializing in loans for vehicle (2 Wheelers, 3 Wheelers, 4 Wheelers, Pre-owned vehicle and Commercial Vehicles). With growing business opportunities, the company diversified its finance business to include SME Business Loans, Loan Against Property (LAP), Personal Loans, Micro Finance Loans (Since 2015), and also acting as an Insurance Service provider for Genaral Insurance to the clients.

Business : The company is currently managing Assets (AUM) of over 500 Crores and has served over 1.2 million clients nationally. The company is having a strong presence in rural, semi-rural, Urban and semi-urban areas, where the company help it clients to secure loans with minimum hassle. The company has direct presence in major cities & towns in Gujarat and Maharashtra. And rest of the area is covered through agents and dealers network spread across the state of Mah & Guj. The company secure the finance from the bank at 12 to 14% and promoter entity at 10 to 12%. ICRA has assigned the company a stable rating of +BB (Stable) for the cash credit limit from the banks.  Capital Adequacy Ratio (CAR) of the company stands at a healthy 60%, well above the regulatory minimu  of 15%. As on 31st March 2017, the Hypothecation / Mortgage Loan stock stands at 55 Cr as compared to 42 Crore as on 31st March 2016.

Outlook : With normal monsoon in Gujarat and Maharashtra in the current year, the demand from rural and semi rural areas for the financial products is likely to increase, current data for 2 wheeler sales from rural areas is encouraging. Demand for MFI loans from 10,000 to 20,000 which the company caters to is likely to remain growth area for the company, along with Personal Loan and LAP portfolio. Falling interest rates is likely to help company secure finance at a much lower rates than currently 10 to 14%.

Valuation : CFL, a continuous dividend paying company for the last 7 years is a BSE listed company with a small equity of Rs 3.45 Cr and promoter holding of 59%, 20% non promoter holding in physical form and 5.3% held by HNI Investor, leaving very less floating stock in the market. For FY 17 the company reported an income of 14.5 Cr and Net Profit of 4.68 Cr giving an EPS of Rs 13.56, for FY 18, the company is likely to grow its topline by 15% and bottomline by 25% due to reduction in cost of fund and growth in disbursement, the expected EPS of Rs 17, the stock is trading at a PE of just 6.8 times, Current Price to book value is 1.2 times only (Industry PE & P/B stands at 37.46 & 2.5 to 4 times. Muthoot Capital Ltd., is in the same business and its valued at 24 P/E and Price to Book of 4 times.), ROE & ROCE is 13.29% & 21.94%, Debt to Equity Ratio is 0.60 only.

In the last 10 years, the company has achieved Compounded Sales Growth of 8.48% and Compounded Profit Growth of 13.5%, Trailing Twelve month Sales Growth & Profit Growth is 18% and 28%, which indicates the company is on a high growth trajectory. If the company is valued even at 50% discount to its peers in terms of P/E and Price to Book value, stock price should easily more than double from current levels, thus making CFL a investment candidate for long term wealth creation.

Hidden Gems Multibagger Telegram Channel can be followed at :

Monday, June 26, 2017

Garware Polyester Ltd (BSE 500655) FV RS 10 CMP 132

The Company : Garware Polyester Limited (GPL) founded in the year 1957, is the pioneer and the largest exporters of polyester films in India. GPL is the only manufacture of sun control window films in India and a trend-setter in Sun Control Film industry with a history of more than 3 decades of technological development. The Company has four manufacturing plants for Polyester Film and manufactures Film of thickness ranging from 10 micron to 350 micron. 
The Company possesses Patented Technology for Dyed Polyester Film in India and USA and is the Second Company in the world to possess such Technology. The Company is already backward integrated through the establishment of a Batch Process Polyester Chips plant which ensures a steady stream of supply of chips for the Film Lines. The BOPP line set up by Company in last year was part of the Company’s efforts to ensure forward integration too. Thus Company’s strength is its integrated manufacturing facilities, R&D Center and development of specialty products for various applications.
Products : The Company manufactures Bi-axially oriented polyethylene terephthalate (BOPET) / Polyester Films, Sun Control Films, BOPP Films, Thermal Lamination Films and Specialty Polyester Films of high quality for a variety of end applications. GPL also manufactures the premium grade heat rejection films based on the latest `Nano Technology’ developed in its in-house R&D facility center. The Company has introduced Infrared rejection films which can reduce infrared heat up to 92%. It has also developed the film to reduce the impact of mobile tower radiation.

Domestic Business : Growing Retail sector, increasing preference towards packaged items, liberalization and rising middleclass is expected to increase in consumption of Polyester Films thereby adding to growth of this segment in the domestic market. Increased usage of window films in offices, commercial buildings and malls will continue to add to the growth of the Company’s business in the premium segment of window films. GPL has well recognized brands and integrated manufacturing facilities which are expected to augur well for the company’s future growth.
Global Business : Through its subsidiaries situated in USA and UK the company has developed a wide network of dedicated customers in Europe, USA, Far East, Middle East, Brazil, Australia, China, Russia, New Zealand, Eastern Europe, Mexico and Africa. The quality of GPL products is rated amongst the best in the world and the Company pays special attention on customer service and satisfaction due to which the customer base is consistent and increasing. The aim is to expand export base and catapult international operations into a major growth driver. GPF is the marketer of the brand ‘GLOBAL WINDOW FILMS’ which is registered in the US and is one the most popular brands. The subsidiary is catering to Russia, Europe, Asia-Pacific and Africa market film under the brand “Garware Sun Control”.
Future Strategy : The strategy is to focus on the specialty films, launch new products, strengthen network and Services and speed up brand building initiatives. Plans are afoot on a marketing warpath, overhauling the product portfolio and penetrate newer markets, launch aggressive advertisement campaigns. The shrink label application film is very well stabilized in the market. With demand outlook for High Shrink films remaining robust, the Company has plans to shift to the specialty PET shrink Films, where it sees a tremendous opportunity. In thermal film, GPL has developed Gold & Feather feel films. With foray into BOPP, GPL has now become the only company in the segment which will be manufacturing BOPET, Sun control Films, Thermal Lamination and BOPP.
Valuation : GPL, a six decade old company with promoter holding of 61% (Zero Pledge) posted a Consolidated total revenue for FY 17 of 925 Cr & Net Profit of 19.9 Cr on an equity of 23.23 Cr giving an EPS of Rs 8.57 per share. Borrowing stands at 267 Cr (Short Term) and 19.9 Cr (Long Term) Finance cost remained 32 Cr. The company is having 4 Lakh shares of Garware Wall Ropes (At current market price of 850 per share, the value is close to 33 Cr)Freehold Land, Lease hold land and an entire Building in Vile Parle, Mumbai, near Airport, the value of which should be many times of current market cap (300 Cr). 
If company can sell even part of its mentioned asset and retire the entire debt than savings on interest alone directly gets added to the bottom line, which can boost the EPS by 15 Rs per share. Debt to Equity Ratio is 0.63, Debtor Days at 19.31. With bottoming out of the Polyfilm Industry in near future and Softening of interest rates, and falling Crude price, the profitability of the company with reducing debt, may improve going forward by 15 to 20% CAGR for the next few years, plus the company is back on dividend paying list after 5 years, that shows confidence of management towards future growth of the company, hence Investor may study this asset rich company for long term investment.
(Investor can follow Hidden Gem Telegram Channel : )

Sunday, June 11, 2017

Kabra Extrusion Technik Ltd (BSE 524109 NSE KABRAEXTRU) – CMP 146 (FV RS 5)

The Company : Kabra Extrustiontechnik (KET) is the flagship company of Kolsite group and one of the largest players in the plastic extrusion machinery known for its innovative offerings. KET specializes in providing plastic extrusion machinery for manufacturing pipes and films. It has two manufacturing locations in Daman.

The company since 1962, has done more than 14,000 installations worldwide and presence in more than 85 countries in Americas, Middle East, Asia and Africa, KET enjoys leadership position in the extrusion market with Coveted 2 star Export House Status. Company has set benchmarks in plastics extrusion industry by modern R & D techniques and various processes to cater the market requirements for low power consumption, high output, maintenance free and user friendly plastics extrusion plants.KET  received Two Consecutive National Awards for Technology Innovation in year 2015 & 2016 respectively. KET as a company through constant R&D and Innovation has introduced several products and solutions for the “First” time in the plastic extrusion industry since 1970. The number of such “First” stands at 57 till 2010 and many more thereafter. 

Collaborations : KET is having Global Collaborations with the leading companies in plastic industry, as : Battenfeld-Cincinnati (Germany-Austria-USA), Penta S.r.l. (Italy), Greiner (Austria), Unicor (Germany), Extron Mecanor (Finland)

Market Solutions offered by KET serving the ever growing :

Agriculture (Plasticulture) : Plasticulture represents use of applications of plastics in Agriculture, Horticulture, Water management & related areas. A variety of plastics materials and end products are deployed in Plasticulture applications - for water conservation, irrigation efficiency, crop and environment protection, as well as end product storage and transportation.

Infrastructure : Infrastructure is one of the key focus areas of growth. Plastics pipes & profiles play a major role in the fields of Housing, Industrial & Public Infrastructure, Sanitation, Water Reticulation, Irrigation, Desalination & Effluent Treatment, Micro-ducts (Fibre optics) & conduits.

Packaging : Flexible packaging offers solutions for diverse applications in various user sectors including staples and food products, beverages, pharmaceuticals, personal care & household products, cigarettes & tobacco products and a wide range of industrial applications. 

Telecom : For telecommunications, cables can be installed in water, in air or underground. The ducts in which the fibre optic cables are installed are usually made of polyethylene. KET manufactures high speed telecom micro-duct lines and high performance bundled sheathing lines to produce micro-duct for 3G & 4G data communication.

Valuation : KET, an R&D and Innovation driven, closely held dividend paying (continuous since last 10 years) company where Indian promoters hold 56% stake (Zero Pledge) & Battenfeld Extrusion (Germany & USA)holds 14% stake, with global presence and well accepted products across continents and serving growth sector such as Agriculture, Infra & Construction, Packaging & Telecom is available at a market cap of just 466 Cr, with sales of 270 Cr for FY17 and Net Profit of 27.6 Cr, giving EPS of Rs 8.68 per share is available at a PE of 16.8 which is bargain than Industry PE of 29.5 and Book value of 58. For FY 18 & 19, KET is likely to deliver topline growth of 10% and bottom line growth of 15%, giving an EPS for FY 18 & 19 at Rs 14.5 and 12.6, at current market price the share is available at an attractive forward PE of just 12.6 times, thus giving investment opportunity for long term growth.

Tuesday, May 16, 2017

LKP Securities Ltd. (BSE:540192 FV : Rs 2.00) CMP 11.05

LKP Securities Ltd. (BSE:540192 FV : Rs 2.00) CMP 11.05

LKP Securities Ltd, demerged from LKP Finance from December 2016, has been one of the oldest and reputed stock broking of the country since 1948 is today one of the largest multi dimensional financial services group and India’s first to be awarded the prestigious ISO9002 certified KPMG Quality Registrar, USA. Since 1948, LKP with its 3772+ outlets across India covering 200 cities in the country, including 25 regional offices at all the major cities, Continues to provide clients with a single source capable of meeting all their needs – be it Equities, Debt, Corporate Finance, Investment Banking, Merchant Banking, Wealth Management or Commodities. 

LKP Securities Limited and its associates enjoy the following Registrations & Memberships : 

Category I Merchant Bankers with SEBI, Membership of BSE & NSE (Capital & Debt Market), AMFI registered all India Mutual Fund Distributors, Member of Commodity Exchanges MCX, NCDX and DGCX (Dubai), Member of NSE for Interest Rate Futures, Member of MCX SX and NSE Currency.

The business verticals are as : 

Equities : 

Retail : LKP offers a wide spectrum of services that includes Equity Broking in Cash and Derivatives, Internet based trading, Demat services & Research services 

Institutional : Clientele at the institutional desk include Mutual Funds, Financial Institutions, Foreign and Domestic Institutional investors, Insurance companies, Banks and Corporates. Some of our esteemed domestic clients include among others – UTI MF, Birla MF, LIC, HDFC MF, Pru ICICI MF, Reliance MF, Principal MF, Sundaram MF, Tata MF, Benchmark MF, ILFS, Canara Robecco MF, ABN Amro MF and FII clients include Morgan Stanley, JP Morgan, Matterhorn and Blackstone among others. Clients whom we have been serving for the past twenty-five years include UTI, LIC, IDBI, ICICI, Tata Group, Birla Group, and Dabur, Jain Irrigation, Emco, Godrej, JB Chemicals, Paper Products and UB Group of Companies among others.

Fixed Income Markets : LKP is recognized as major dealer of Fixed Income Securities, executing deals for Banks, Institutions, FIIs, MFs, Insurance companies, Primary Dealers, large Corporates, PSUs & PF Trusts. 

Primary Market Division : LKP’s vibrant 'Primary Market' Division does syndication business in IPOs', Company Fixed Deposits, Capital Gain Bonds (U/s 54EC), 8.00% Saving (Taxable) Bonds floated by RBI & various bonds floated by Central & State Governments.

Mutual Funds & Insurance Advisory : LKP Investment Advisory Services Offer tailor-made wealth management services to Retail, High Networth Individual and Corporate Clients. 

Commodities : Alpha Commodities offers a complete bouquet of client- friendly services in the burgeoning Commodity Futures market.

Currency Derivatives : With the launch of currency derivatives, LKP offers its clients yet another segment for trading. Jointly regulated by SEBI and RBI provides traders with another lucrative trading avenue.

Valuations A 70 year old closely held company with nationwide retail client base along with marquee institutional & corporate clientele is trading at a market cap of ~80 odd crore. Company reported total income for March Quarter of Rs 16.68 Cr and Net Profit of 3.32 Cr giving an EPS of 0.45 per share. Expected FY 18 EPS is Rs 1 per share. The stock is trading at just 11 times FY 18 , while the industry PE for brokerage companies is above 20 making it a good investment candidate for long term growthas new generation has taken over the company with new team in place to drive its overall business to create shareholder value after demerging the company from LKP Finance Ltd.