Good pledge vs Bad pledge .

In our stock selection first things we notice about management is that of pledge.
If there is a pledge on shares we dont proceed immediately but in case of no pledge we just jump to the next point.
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Pledge could be for many reasons.
Like some companies dont want to take borrowing, and need immediate capital for operation so they initiate pledge.
After pledge of shares we closely have to monitor financial performance of the Company.
⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️
Suppose company pledge its shares and next quarter posted either flat results or bad results then we should be alert immediately.
Some promoters uses pledge proceeds for their own instead of business.
So pledge is not bad but its impact should be in financial performance.
Investor should consider that even after huge capital employment why company performance is not improving.
Since on moneycontrol each stock is called Multibagger. So be aware.
⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️
Like star paper and mangalam drug having pledge but their financial performance each quarter improving whether top line or bottom line and examples of good pledge .
⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️
While DQ entertainment promoter having pledge of 100 % but still making loss.
This is bad pledge and investors should be alerted when each quarter company posting bad results even after such huge capital employment in business.

WHY MOREPEN LAB NOT MOVING

MORE PENS STATE -OF -ART MANUFACTURING FACILITY
Baddi COMPRISES A SCIENTIFICALLY INTEGRATED COMPLEX OF 10
PLANTS , EACH WITH A SPECIFIC PRODUCT PROFILE .
🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️
THE COMPANY’S EXTENSIVE
R&D FACILITIES AND FACTORIES ARE MANNED BY A DEDICATED TEAM OF
PROFESSIONALS WHO ENSURE STRINGENT QUALITY STANDARDS .
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TODAY MOREPEN IS
EXPORTING PRODUCTS TO SEVERAL COUNTRIES ROUND THE GLOBAL .

THE FIRST MOREPEN MANUFACTURING PLANT WAS SET UP ON THE FOOTHILLS OF
THE HIMALAYAS IN THE IDYLLIC SURROUNDINGS OF THE PARWANOO .
🗼🗼🗼🗼🗼🗼🗼🗼🗼🗼🗼🗼🗼

THE LARGE AND
SPREAD OUT FACILITY IS USFDA APPROVED FOR MANUFACTURE OF LORATADINE ,
AN ANTI-ALLERGY DRUG – INTERNATIONALLY KNOWN AS CLARITIN
(COMPANY SITE)
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MOREPEN HAS BEEN HANDLING COMPLEX CHEMICAL MANUFACTURING PROCESSES
SINCE LONG.
⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️⛰️
GREATER EMPHASIS PLACED ON ADVANCED DRUGS AND INTERMEDIATES
LIKE ANTI-HYPERTENSIVE,ANTI-DIABETIC
API REVENUES FOR THE CURRENT YEAR HAVE REGISTERED A GROWTH OF 28%
WITH INCREASED COVERAGE OF EXPORT MARKETS .
🛎️🛎️🛎️🛎️🛎️🛎️🛎️🛎️🛎️🛎️🛎️🛎️🛎️🛎️
API BUSINESS MAKES UP OVER 63% OF OVERALL  BUSINESS OF THE COMPANY
AGAINST 60% IN THE LAST YEAR.
🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️
COMPANY HAS LAUNCHED A NEW BUSINESS UNDER THE NAME “GROOMING”
IN 2016 AND CURRENT YEAR SALES OF IT 2.74 CR AND COMPANY EXPECTS
BETTER PERFORMANCE FROM THIS.

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FINANICIAL PERFORMANCE

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SALES IN 2011 :216 CR
SALES IN 2016:452 CR
SALES GROWTH:109%
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NET PROFIT IN 2011 WAS( -42.98 CR) BUT IN 2016 ITS 15.78 CR.
COMPANY WAS MAKING LOSS DUE TO HEAVY R&D EXPENDITURE AND OTHERS EXPENSES WHICH KEPT
REDUCING YEAR BY YEAR AND IN 2015 IT BECOMES LOSS TO PROFIT.
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SINCE THE MAIN COST WHICH PHARMA COMPANY FACES ARE R&D EXPENDITURE IF AFTER SUCH EXPENDITURE MARKET DIDN’T TAKE ITS PRODUCTS POSITIVELY THEN ANY COMPANY FINANCIAL DESTROY.
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IN 2016 IT WAS TRADING AT PE OF 75 AND NOW CURRENTLY TRADING PE OF
41.72 MEANS SOME IMPROVEMENT IN EARNING.
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COMPANY HAS NEVER PAID DIVIDEND DUE .
🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️
IN LAST 3 QUARTERS THERE IS NO IMPROVEMENT IN QUARTERLY EBIDTA LEVEL
THAT’S WHY MARKET IS NOT READY TO GIVE PRICE RISE.
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RIGHT NOW COMPANY IS NOT MAKING TOO MUCH EXPENSE ON R&D AND GIVING FOCUS TO CUT COST AND OTHER EXPENSES.
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COMPANY IS REDUCING DEBT EACH YEAR WHICH IS A GOOD SIGN .
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COMPANY HAS MADE INVESTMENT ON DEBTOR TO INCREASE TOP LINE.
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COMPANY EMPLOYEE COST IS INCREASING EACH YEAR AND RIGHT NOW 10% OF TOTAL SALES.
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THE STATUTORY AUDITOR HAS COMMENTED  ABOUT DELAY IN DUE PAYMENT TO LENDERS,
TDS,VAT,ESI ETC.
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COMPANY HAS NOT REDEEMED PREFERENTIAL SHARES WHICH WAS MENTIONED BY
SECRETARIAL AUDITORS IN HIS REPORT
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COMPANY IS PLANNING TO CONVERT PREFERENTIAL SHAREHOLERS INTO EQUITY
SHARES IF IT HAPPENS THIS WILL INCREASE BURDEN ON COMPANY TO IMPROVE
EPS RESULTING SHARE PRICE.
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COMPANY IS NOT ASSURED REGARDING ITS US  GROWTH DUE TO DECLINING
DEMAND IN SMALL MOLECULES
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THE SEGMENT IN WHICH COMPANY IS OPERATING IS HIGHLY COMPETITIVE AND
LARGE PLAYERS GIVE NO ROOM TO SUSTAIN.
🗺️🗺️🗺️🗺️🗺️🗺️🗺️🗺️🗺️🗺️🗺️🗺️🗺️🗺️
API BUSINESS IS HIGHLY EXPORT ORIENTED AND EXCHANGE RATE FLUCTUATIONS
CAN IMPACT DRASTICALLY ITS REVENUE.
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CONCLUSION-
COMPANY IS TRYING TO REDUCE COST PLUS DEBT BUT CONVERSION OF PREFERENTIAL SHAREHOLDERS INTO EQUITY INCREASES EQUITY RESULTING DECREASING EPS.
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EXCEPT THIS AS PER HISTORICAL DATA IF COMPANY FAILED TO CUT R&D AND OTHERS COST THEN IT ONCE AGAIN BECOME LOSS MAKING.
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SO FRESH INVESTMENT NOT SUGGESTED.
THERE MAY BE CHANCES OF ERRORS WHICH CANT BE DENIED.
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THIS IS MY PERSONAL VIEW NO INVESTMENT IDEA WHICH MAY BE INCORRECT.

CHALLENGES OF SOLAR INDUSTRIES

1:IN INDIA SOLAR INDUSTRY HAS MUCH COMPETITION ALREADY WHICH CREATE MARGIN PRESSURE, EXCEPT THIS DUMPING BY CHINA AND USA COMPANIES IN INDIA ANOTHER MAJOR PROBLEM.
IN 2010 GOVERNMENT PUT ANTI-DUMPING DUTY BUT THAT DIDN’T SOLVE ISSUE MUCH.
RECENTLY CHINESE COMPANIES STARTED A PLANT WITH SB ENERGY IN ANDHRA PRADESH THATS ANOTHER BLOW.
http://www.4-traders.com/news/Chinese-plant-to-provide-solar-energy-to-seven-lakh-households-in-Andhra–24609003/
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2:LAND POSSESSION
SOLAR INDUSTRY REQUIRE HUGE LAND BANK FOR OPERATION WHICH IS ANOTHER PROBLEM.
GETTING LAND IN INDIA IS NOT EASY.
AGRICULTURAL LAND CANT BE USED, MANY LEGAL ISSUES FOR LAND ENTITLEMENT ANOTHER PROBLEM.
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3:CAPITAL INTENSIVE
SOLAR INDUSTRY IS HIGHLY CAPITAL INTENSIVE.
SOLAR COMPANIES HAVE TO MAKE HEAVY CAPITAL EXPENDITURE AT START OF THE PROJECT.
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4:FINANCING PROBLEM
SOLAR COMPANIES FACE FINANCING PROBLEM FROM FINANCIAL INSTITUTIONAL.
INDIA IS ALREADY FACING NPA PROBLEM, BANKS PARTICULARLY AVOID FINANCING TO SOLAR INDUSTRY CONSIDERING THEIR HEAVY COST OF OPERATION.
IT CAN EASILY FOUND THAT MOST OF SOLAR COMPANIES SHARES ARE PLEDGED WITH FINANCIAL INSTITUTIONS.
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5:ALTERNATIVE OPTION
THERE ARE ALSO OTHERS ALTERNATIVE SOUCES LIKE BIOMASS, WIND, TIDAL, NUCLEAR.
THIS CREATE HURDLES FOR SOLAR INDUSTRIES.
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6:MAINTENANCE COST

DUST , HIGH TEMPERATURES CONTRIBUTE TO A SIGNIFICANT INCREASE IN THE COST OF OPERATING SOLAR POWER PLANTS IN THE COUNTRY .
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7:IMPORT OF SILICON
TO MANUFACTURE SOLAR CELLS, SOLAR COMPANIES HAVE TO IMPORT SILICON AND SOLAR WAFRES.
THIS IS MAJOR OPERATIONAL COST AND CREATE MARGIN PRESSURE.

WHATEVER IS POSTED HERE ONLY MY PERSONAL OPINION.

WHY ARCHIDPLY IS BETTER THAN UNIPLY

ARCHIDPLY VS UNIPLY
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1:MARKET CAPITAL
UNIPLY: 826CR
ARCHIDPLY : 200CR
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2:PRICE TO BOOK
UNIPLY: 6.5
ARCHIDPLY : 1.54
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3:MARKET CAP TO SALES
UNIPLY: 3.10
ARCHIDPLY : 0.74
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4:PRICE TO EARNING
UNIPLY: 113
ARCHIDPLY : 30
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5: INVENTORY DAYS
UNIPLY :135
ARCHIDPLY : 90
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6:DEBT TO EQUITY
UNIPLY : 1.27
ARCHIDPLY : 0.37
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7:FREE CASH FLOW PER SHARE
UNIPLY : (-12/SHARE)
ARCHIDPLY : 3.5 /SHARE
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8:PROMOTERS HOLDING WITH PLEDGE
UNIPLY : 32% WITH 46 PERCENT PLEDGE
ARCHIDPLY : 72% WITHOUT PLEDGE
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9:DEBT TO RESERVES
UNIPLY :DEBT DOUBLE FROM RESERVES
ARCHIDPLY :RESERVES DOUBLE TO DEBT
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10:EV TO EBIDTA
UNIPLY :40
ARCHIDPLY :11

NOW PEOPLE THINK WHY AM I COMPARING ARCHIDPLY WITH UNIPLY BECAUSE BOTH ARE SMALL CAP COMPANIES AND GROWING BUT ARCHIDPLY FUNDAMENTAL FAR BETTER THAN UNIPLY.

GUESS THE STOCK

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1:COMPANY BELONGS TO MANUFACTURING SEGMENT.
2:COMPANY MARKET CAP BELOW 500 CR
3:COMPANY IS BIGGEST BRAND IN INDIA IN ITS INDUSTRY.
4:TOTAL TURNOVER MORE THAN 500 CR
5:COMPANY GROWTH RELATED TO GROWTH IN INFRASTRUCTURE, HOUSING SECTOR WHICH IS GROWING RAPIDLY.
6:PROMOTERS HOLDING MORE THAN 60 PERCENT WITH NEGLIGIBLE INSTITUTIONAL HOLDING.
7:COMPANY HAS POSTED STRONG QUARTER 4.
8:CURRENT MARKET PRICE BELOW 200
9:COMPANY HAS NEVER MADE LOSS IN LAST 10 YEARS.

COMPETENT AUTO A GOOD INVESTMENT

COMPETENT AUTO LTD

(BSE CODE 531041)
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THE COMPANY , COMPETENT AUTOMOBILES CO . LTD . (CACL) IS A PART OF DELHI BASED COMPETENT GROUP , PROMOTED BY . RAJ CHOPRA. THE COMPANY IS A PROFIT MAKING COMPANY SINCE INCEPTION AND ENGAGED IN AUTOMOBILES BUSINESS .
🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️
PRESENTLY THE COMPANY HAS ITS PRESENCE AS A DEALER OF MARUTI SUZUKI IN DELHI , HARYANA AND HIMACHAL PRADESH . IN DELHI THE COMPANY HAS 5 SHOWROOMS AND 3 WORKSHOPS , IN HARYANA 2 SHOWROOMS AND A WORKSHOP AND IN HIMACHAL PRADESH 2 SHOWROOMS AND 2 WORKSHOPS.
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COMPETENT STATUS IS RE -AFFIRMED EVERY YEAR AT THE ALL INDIA MARUTI DEALERS ‘ CONVENTION ,THE COMPANY BAGS MAXIMUM NUMBER OF AWARDS IN ALL CATEGORIES. CHIEF AMONG THESE AWARDS ARE THOSE FOR BEST SALES , SERVICE AND CUSTOMER SATISFACTION .
🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️
COMPETENT S SERVICES HAVE , IN THE PAST CONSISTENTLY WON THE PRIMARY AWARD THAT REALLY MATTERS TO ANY ORGANIZATION PROVIDING SERVICES – THE APPROVAL OF THE CUSTOMER .
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AS A TESTIMONIAL TO THIS , COMPETENT HAS ENJOYED THE MOST REPEAT CUSTOMERS AMONG MARUTI DEALERS THE COMPANY HAS SOLD MORE THAN 2,50,000 VEHICLES AND THE NUMBERS ARE GROWING YEAR ON YEAR .(COMPANY SITE)
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AS WE KNOW MARUTI IS AN EVER GROWING COMPANY AROUND THE WORLD AND LEADER IN CAR SEGMENT IN INDIA.
EACH YEAR MARUTI BRONGS A NEW MODEL AND THAT IS SOLD IMMEDIATELY.
AS PER LATEST REPORT MARUTI BALENO MADE HIGHEST SALES EVER.

ITS ASSOCIATION IS VERY POSITIVE FOR A COMPANY WHICH CONSISTENTLY MAKING PROFIT.

SOME FUNDAMENTAL FACTS:
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COMPETENT HAS 75% PROMOTERS SHAREHOLDING, WHICH EVERYONE DESIRE IN STOCK MARKET.
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NO DII AND FII HAS HOLDING WHICH CONFIRMS THAT PRICE WILL APPRECIATE FASTLY WHEN GOT COVERAGE.
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COMPETENT MARKET CAP ONLY 120CR WHICH IS LESS THAN EVEN QUARTERLY SALES WHILE BOOK VALUE IS 189 CR.
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COMPETENT HAS TOTAL ASSEST 239CR
WHILE SALES 1181 CR MEANS SALES TO ASSEST 5 TIMES.
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COMPETENT SALES GROWTH IN LAST 2 YEARS 27.81% EPS GROWTH 21%.
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CURRENTLY ITS TRADING AT PE OF 7.80 WHILE INDUSTRY PE IS 39.
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COMPETENT NET SALES PER SHARE IS 188 WHICH IS ALSO MORE THAN ITS MARKET CAP.
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COMPETENT CONSISTENT PERFORMED IN LAST MANY YEARS PAID DIVIDEND TO SHAREHOLDERS AND NEVER MADE LOSS.
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COMPANY HAS MORE PLANS TO OPEN SHOWROOMS IN COMING YEAR.
CONSIDERING MARUTI GROWTH COMPETENT CANT BE IGNORED FOR LONG TIME.
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CONSIDERING ABOVE FACTOR AND GROWTH IN AUTOMOBILES SECTOR I THINK IT CAN BE MULTIBAGGER IN FUTURE AND AT CURRENT PRICE ITS CHEAP AND BEST BUY.
THERE IS NO DOWNSIDE POSSIBLE.
http://www.moneycontrol.com/news/business/maruti-suzuki-sales-rise-8-in-march-to-1-39-lakh-units-2251125.html

DISCLAIMER :I AM HOLDING THIS STOCK.