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%.

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+

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

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 : t.me/hiddengemsmultibaggers


Thanks

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.

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 31^st March 2017, the Hypothecation / Mortgage Loan stock stands at 55 Cr as compared to 42 Crore as on 31^st 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.

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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.

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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.

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 growth, as 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.

RAM RATNA WIRES LTD (BSE:522281) FV RS.5 CMP 68.00

RAM RATNA WIRES LTD (BSE:522281) FV RS.5 CMP 68.00

Company : Ram Ratna Wires, headed by Shri Rameshwarlal Kabra having experience of near 48 years in enameled copper winding wire and cable industry, with its leading and trusted brand in winding wires, RR Shramik is the leading manufacturer and suppliers of winding wire in the electrical equipment industry both national and international market, including, Gulf, Africa and Europe. The products of the company are utilized in various equipment including transformers, cables, transmission lines, switchgear, capacitors etc. The company has Joint Venture at Bangladesh with RR-Imperial Electricals Limited which would manufacture Enamelled Copper Wire, Cables and Enamelled Strips and have 10% stake in JV and company also hold 2.15% of RR Kabel Ltd.

Products : The Product line includes sixteen products that broadly fall into five groups i.e. Enamelled Copper Wire (ECW), Enamelled Copper Strips (ECS), Submersible Winding Wire (SWW), Bare Copper Strips (BCS) and Enamelled Aluminium Wire (EAW), fiber glass covered strips and enamelled fiberglass covered and varnished strips. The end products meet all of the well-known Indian and international standards including IS, IEC, JS and NEMA. The company operate in the transmission and distribution (T&D) industry, and it is the first choice for large Original Equipment Manufacturers (OEMs) and top electrical companies of India as well as MNCs. Through dealer-market nationwide, the company also cater to thousands of small manufacturing and repairing units of electrical equipment in the country, thus company has equal share of organized and un-organized sector spread across the country. The Company continues to develop value added products like corona resistant wires, triple insulated wires as per customer’s requirements, keeping pace with developments across the world.

Production & Technology : The state of the art production facilities spread across two units located at Silvassa, equipped with the latest machinery have the expertise in manufacture of winding wire of all types – Copper and Aluminium, round and rectangular. The production systems are often customized to the client needs. The company is focused on production of more value added items like enamelled aluminum winding wire, fiberglass insulated wires & strips and paper covered wires & strips which have also shown substantial increase in production, compared to that of previous years. Even though an economic slowdown has plagued the power sector recently, company had a record production over the last couple of years. Future expansion plans are in the pipeline to meet the growing potential in the industry.

The Company has developed, processed and supplied the high tech products like corona resistant enameled wires as per RDSO specification. This product has the capacity to safeguard the electrical equipment from the danger of premature burning of coils of equipment like Motors which are fed from inverter. Likewise, triple insulated wires manufactured as per Japanese specification (JIS :3005) and UL safety Standards 60950 is ideal for items like power supply units of in Electrical & Electronic equipment.

Sector Outlook : The demand for winding wire is directly linked with the growth in power sector, Both Hydrocarbon based as well as Green and Clean Power. The Union budget for the financial year 2016-2017 focus on accelerated growth within power sector with increased outlay of the tune of ` 79,884 crores. This combined with programs like “Make in India” and “Skill India” will give a big boost to domestic production of Electrical & electronic equipment and hence greater demand for winding wires is expected.

Winding wires & strips form a very important segment of Indian Electrical Equipment Industry which includes both power generation, Transmission and Distribution (T&D) equipment. If the coil of any electrical equipment like Generator, Motor, Transformer, Relay or Switchgear, Domestic appliances etc. burns or fails, the equipment is dead and hence, winding wire/strip is often known as the “Heart” of the equipment. It is used in all sectors namely Railways, Defence, Agriculture, Infrastructure etc. of Indian economy.

Valuation : This closely held company with 73% promoter stake and having book value of 35 Rs, dividend payout ratio of 21.62%, TTM Sales of over 700 Cr, ROE of 15.63% and ROCE of 16.95%, with improving OPM and profits in coming quarters the ROE and ROCE will only improve. Falling copper price and weak USD to benefit the company as copper is the main Raw material of which 32.74% of the total consumption is imported by the company alongwith state of the art machinery for quality production. With expected EPS of over Rs 9 for FY17, as compared to Rs 4.25 for FY16, the stock is available at PE of just 7.5 FY17 (Industry PE above 20).

As per the projection by Union Power Ministry, by the year 2020, every home in the country will be electrified. The Union Budget 2016-2017, have given prominence to Agriculture and Rural sector, apart from infrastructural development. All these factors will boost the demand for Electrical equipment for Industry and domestic consumption in the vast rural sector which in turn will result in huge demand for winding wires.

PEARL POLYMERS LTD – 24.50 (BSE:523260 NSE:PEARLPOLY) – The makers of PEARLPET Jars, Bottles & Containers!!!

PEARL POLYMERS LTD – 24.50 (BSE:523260 NSE:PEARLPOLY) – The makers of PEARLPET Jars, Bottles & Containers!!!

Company : Pearl Polymers Limited, Established in 1971, the makers of PEARLPET brand kitchenware since 1984, are the pioneers in bringing ISBM (Injection Stretch Blow Molding) technology to India. PPL is one of the most distinguished and reputed manufacturer and exporter of all types of PET containers and bottles in India.

The brand PERALPET is the most trusted household name in kitchen storage solution being the pioneer to offer Pet Jars and Bottles to the Indian market, which replaced heavy and difficult to maintain Glass products from the Indian homes in the early 1980s, due to the various qualities like : Non-toxic, Food-grade and Re-usable, Unbreakable, Strong and Light-weight. PearlPET uses virgin PET, PP or LDPE materials which are universally approved by USFDA, EU Directive 2002/72/EC, BIS IS:12252 -1987 and other regulating bodies for Food, Beverage and Water storage, products & raw material do not use Bisphenol A (BPA) or other harmful plasticizers/chemicals, steel cap jars have strong durable stainless steel cap, rust free & unbreakable, Air tight, 100% recyclable and are environment friendly.

 Today PEARLPET branded products includes hundreds of items of various colors, size and utility, like : Water Bottles, Food Storage and Micro Fresh in different variants and price range. Through the network of four plants (Baddi, Pant Nagar, Mahad & Jigani) and numerous offices through the length and breadth of the country, and a production capacity of over 100 machines currently, Pearl Polymers have successfully changed the packaging industry in the country. The company also sells its products online through every major e-commerce site, thereby directly serving the consumer which not only saves money, but in the process also gets direct feedback from the consumers instantly, which help the company to improve and innovate further.

The company has robust R&D Department, the success of which has been realized through several packaging awards, like the World Stars, Asia Stars, India Stars and Plast Icons Awards that have been awarded to Pearl Polymers Limited, both nationally and internationally. In addition to the PearlPET brand, Pearl is also the largest custom-molded rigid packaging supplier in India doing job work for various FMCG brands in Food and Beverage segment.

The company is continuously automotive the process to cut the cost by investing in Online Carton Printing machines, Collating machines, Automated shrink tunnels, Labeling Machine & Conveyors, etc. The company is also working on using 'Tritan' material (A specialty grade Polyester) for making high end products for Indian market. The concept of bottles, jars & containers is very new in Indian market & has immense potential for growth. The company will soon be launching Fresh & Seal range of new products under its MicroFresh line of microwave friendly products.

Valuation : This 45 year old company with 54% Promoter holding, having strong brand value among household and retail segment, which also happen to be the pioneer into bringing safe to use plastic products in Indian kitchen and having production facility at 4 different locations and production line of over 100 machines, is available at a market cap of only 40 Crore (Brand valuation alone should command more than 75 Cr) and 30% discount to Book Value of Rs 31.5 per Share, and having FY 16 Sale of Rs 176 Cr thus giving Mcap to Sales of less than 0.25 times. The promoters are working on to turn the company around in few quarters, which can be seen in their efforts of cost cutting, reducing debts and selling online through e-commerce. With the price of crude stabilizing near 50$ the company will have a stable pricing for raw material.

The company should begin to report good numbers going forward and command good PE ratio. Investors should study this HIDDEN GEM for long term growth. (The company is also listed in NSE so the quarterly and yearly price band does not apply.)