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.
⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️⛱️
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 .
🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️
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)
🛤️🛤️🛤️🛤️🛤️🛤️🛤️🛤️🛤️🛤️🛤️🛤️🛤️🛤️

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.

🏖️🏖️🏖️🏖️🏖️🏖️🏖️🏖️🏖️🏖️🏖️🏖️🏖️
FINANICIAL PERFORMANCE

🏭🏭🏭🏭🏭🏭🏭🏭🏭🏭
SALES IN 2011 :216 CR
SALES IN 2016:452 CR
SALES GROWTH:109%
🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️🏕️
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.
🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️
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.
🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️🏝️
IN 2016 IT WAS TRADING AT PE OF 75 AND NOW CURRENTLY TRADING PE OF
41.72 MEANS SOME IMPROVEMENT IN EARNING.
🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️
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.
🏮🏮🏮🏮🏮🏮🏮🏮🏮🏮🏮🏮
RIGHT NOW COMPANY IS NOT MAKING TOO MUCH EXPENSE ON R&D AND GIVING FOCUS TO CUT COST AND OTHER EXPENSES.
🏙️🏙️🏙️🏙️🏙️🏙️🏙️🏙️🏙️🏙️🏙️🏙️
COMPANY IS REDUCING DEBT EACH YEAR WHICH IS A GOOD SIGN .
🚿🚿🚿🚿🚿🚿🚿🚿🚿🚿🚿

COMPANY HAS MADE INVESTMENT ON DEBTOR TO INCREASE TOP LINE.
🏟️🏟️🏟️🏟️🏟️🏟️🏟️🏟️🏟️🏟️🏟️🏟️🏟️
COMPANY EMPLOYEE COST IS INCREASING EACH YEAR AND RIGHT NOW 10% OF TOTAL SALES.
🏜️🏜️🏜️🏜️🏜️🏜️🏜️🏜️🏜️🏜️🏜️🏜️🏜️🏜️
THE STATUTORY AUDITOR HAS COMMENTED  ABOUT DELAY IN DUE PAYMENT TO LENDERS,
TDS,VAT,ESI ETC.
🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️🖼️

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.
🏜️🏜️🏜️🏜️🏜️🏜️🏜️🏜️🏜️🏜️🏜️🏜️
COMPANY IS NOT ASSURED REGARDING ITS US  GROWTH DUE TO DECLINING
DEMAND IN SMALL MOLECULES
🏔️🏔️🏔️🏔️🏔️🏔️🏔️🏔️🏔️🏔️🏔️🏔️🏔️
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.
⛩️⛩️⛩️⛩️⛩️⛩️⛩️⛩️⛩️⛩️⛩️⛩️⛩️⛩️⛩️
CONCLUSION-
COMPANY IS TRYING TO REDUCE COST PLUS DEBT BUT CONVERSION OF PREFERENTIAL SHAREHOLDERS INTO EQUITY INCREASES EQUITY RESULTING DECREASING EPS.
🏙️🏙️🏙️🏙️🏙️🏙️🏙️🏙️🏙️🏙️🏙️🏙️🏙️
EXCEPT THIS AS PER HISTORICAL DATA IF COMPANY FAILED TO CUT R&D AND OTHERS COST THEN IT ONCE AGAIN BECOME LOSS MAKING.
🏖️🏖️🏖️🏖️🏖️🏖️🏖️🏖️🏖️🏖️🏖️🏖️
SO FRESH INVESTMENT NOT SUGGESTED.
THERE MAY BE CHANCES OF ERRORS WHICH CANT BE DENIED.
🛌🛌🛌🛌🛌🛌🛌🛌🛌🛌🛌🛌🛌
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/
🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆
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.
🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆
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.
🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆

5:ALTERNATIVE OPTION
THERE ARE ALSO OTHERS ALTERNATIVE SOUCES LIKE BIOMASS, WIND, TIDAL, NUCLEAR.
THIS CREATE HURDLES FOR SOLAR INDUSTRIES.
🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆
6:MAINTENANCE COST

DUST , HIGH TEMPERATURES CONTRIBUTE TO A SIGNIFICANT INCREASE IN THE COST OF OPERATING SOLAR POWER PLANTS IN THE COUNTRY .
🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆
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 I AM BEARISH ON OIL AND EXPLORATION SECTOR

THIS ANALYSIS I HAVE POSTED IN MY GROUP ASAN AND NOW UPDATING ON BLOGGER SINCE ITS GOING TO BE RIGHT.

CHECK THE DATE WHEN IT WAS SHARED.


💥💥💥💥💥💥💥💥💥💥💥💥💥💥💥💥
Sectoral Analysis of Oil and Exploration companies.

🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆
Many people heard that Nokia has to shut down their plant due to smartphone.
If investors timely perceive such type of Threat ,they can save their money.
Lets talk about Oil and Exploration companies.
As everyone know that due to pollution china has to shut down chemical plant.
What causes such pollution Mainly Diesel and petrol vehicles.
💥💥💥💥💥💥💥💥💥💥💥💥💥💥💥💥💥💥
Now the Whole world are concerned about carbon emission,Ozone layer.
That’s why Many of countries opted for Electronic vehicles which are environmental-Friendly and polltution less.
From 2010 Demand for crude kept decreasing Resulting Aban offshore stock price Down from 5000 to 200.
Opec cut production but that cant solve the problem.
They cannot do it for long time because their whole economy is based on Oil production.
🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆
Conceiving this threat Saudi Arabia started Dairy production in its country.
Recently In New Delhi air pollution became too much resulting many school shut down.
In india also started to make Electronic vehicle,Goldstone infra has also snatched a order with joint venture of BYD.
Ashok Leyland and Jbm auto also going to start to make e-vehicle.
🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆🎆
Considering this things i would say to all Don’t invest in such oil based companies even though analysts say from Now on
and save money.

WHY ARCHIDPLY IS BETTER THAN UNIPLY

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

KAKATIYA CEMENT MULTIBAGGER AT THROWAWAY PRICE

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KAKATIYA CEMENT SUGAR & INDUSTRIES LIMITED (KCSIL) EARLIER KNOWN AS KAKATIYA CEMENTS LIMITED (KCL) WAS INCORPORATED IN THE YEAR 1979 FOR THE MANUFACTURE OF ORDINARY PORTLAND CEMENT . THE COMPANY WAS PROMOTED BY SHRI P .VENKATESH, A REPUTED CIVIL CONTRACTOR WITH EQUITY SUPPORT FROM APIDC. THE INSTALLED CAPACITY OF THE CEMENT DIVISION OF THE COMPANY WAS INCREASED OVER THE PERIOD FROM THE INITIAL 66,000 TPA TO 1,98,000 TPAto 2,97,000 TPA at PRESENT , WHEREAS THAT OF THE SUGAR DIVISION IS INCREASED FROM 2500 TCDto 3200 TCD AT PRESENT . THE CEMENT PLANT OF THE COMPANY IS LOCATED IN NALGONDA DISTRICT OF ANDHRA PRADESH , WHEREAS THE SUGAR AND POWER PLANTS ARE LOCATED IN KHAMAM DISTRICT .
🗯️🗯️🗯️🗯️🗯️🗯️🗯️🗯️🗯️🗯️🗯️🗯️🗯️🗯️🗯️

FOR OVER TWO DECADES , KAKATIYA CEMENT HAS MET DEMAND OF THE CORE SECTORS OF THE COUNTRY WITH ITS QUALITY CEMENTS . WHETHER IT IS CONCRETING RAILWAY SLEEPERS , CEMENTING OIL WELLS OR SHAPING DREAM HOUSES . TODAY KAKATIYA CEMENT IS A REPUTED NAME IN CEMENT INDUSTRY .
SOURCE :WEBSITE
💥 💥 💥 💥 💥 💥 💥 💥 💥 💥 💥
RECENTLY GOVERNMENT HAS MORE FOCUS ON HOUSING AND INFRASTRUCTURE DEVELOPMENT AND THIS WILL CREATE HUGE DEMAND FOR CEMENT.
KAKATIYA CEMENT HAS RECENTLY AUGMENTED CAPACITY CONSIDERING DEMAND FOR CEMENT AND SUGAR DIVISION ALSO DOING WELL.

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PROMOTERS HOLDING : 53.15%
DII AND FII HOLDING NEGLIGIBLE
💥 💥 💥 💥 💥 💥 💥 💥 💥 💥
RETURN ON EQUITY OVER 20%
RETURN ON CAPITAL EMPLOYED:OVER 15%
🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴

SALES IN 2016 :210 CR
SALES IN 2017 : 241CR
SALES GROWTH :15%
🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴

EBIDTA IN 2016 :27 CR
EBIDTA IN 2017 : 41CR
EBIDTA GROWTH : 52%
🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴

EPS IN 2016 :28
EPS IN 2017: 37
EPS GROWTH :32%
🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴
HIGHEST TRADED PE IN 2016 : 20
CURRENT TRADED PE:10.7
🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴
HIGHEST TRADED P/B IN 2016 : 2.3
CURRENT TRADED P/B : 1.3
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IF KAKATIYA CEMENT TRADED AT P/E OF 15 AT LEAST THEN ITS PRICE SHOULD BE 37*15=555
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IF KAKATIYA CEMENT TRADED AT PRICE TO BOOK OF 2.3 THEN ITS PRICE SHOULD BE 680 PLUS.
🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴
EXPECTED SALES IN 2018:264CR
EXPECTED EBIDTA IN 2018: 48 CR
EXPECTED EPS IN 2018: 41
EXPECTED PRICE : 492 AT CURRENT PE
🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴
SO OVERALL CONCLUSION IS THAT THE KAKATIYA CEMENT PRICE WILL CROSS 500 TILL 2018.
INTERESTING THING KAKATIYA CEMENT MARKET CAP ONLY 300 CR WHILE ITS PEERS MARKET CAP 10 TIMES MORE THAN THIS.
OTHERS THINGS LAST POST I HAVE MENTIONED NET PROFIT MARGIN WHICH IS BETTER THAN OTHERS COMPANIES.
AND ITS GOING TO BE MULTIBAGGER IN NEXT 2 YEARS.

🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴🌴
DISCLAIMER :I AM HOLDING THE STOCK

CHECK WHICH CEMENT COMPANY GOING TO BE MULTIBAGGER

SOME CEMENT COMPANY COMPARISON
BASED ON NET PROFIT MARGIN
💥💥💥💥💥💥💥💥💥💥💥💥💥
-KAKATIYA CEMENT :11.91%

-ULTRATECH CEMENT :10.99%

-AMBUJA CEMENT :6.49%

-SHREE CEMENT :15.83%

-ACC CEMENT :5.54%

-RAMCO CEMENT :16.30%

-OCL INDIA CEMENT :13.15%

-ANJANI CEMENT :14.56%

-HEIDERBERG CEMENT :4.56%

PANYAM CEMENT :2.5%

-SHIVA CEMENT : NO MARGIN

-ORIENT CEMENT :2.77%

-KATWA UDOYOG : 12%

-BARAK VALLEY:1.12%

-BIRLA CORP :6.39%

-BURNPUR CEMENT :NO MARGIN

– DALMIA BHARAT :4.66%

-GUJ SIDHEE CEMENT :NO MARGIN

– INDIA CEMENT :3.71%

-J K CEMENT :2.81%

-MANGALAM CEMENT :3.96%

– RAIN IND LIMITED :4.96%

– SAURASTRA CEMENT :2%

-UDAIPUR CEMENT :3.5%
🗻 🗻 🗻 🗻 🗻 🗻 🗻 🗻 🗻 🗻 🗻
ONLY 7 COMPANIES HAVING PROFIT MARGIN ABOVE 10%
OUT OF THIS ANJANI PORTLAND,KATWA UDOYOG CEMENT AND KAKATIYA CEMENT INCLUDED.
OUT OF 7, FOUR COMPANIES ARE TRADING ABOVE 500 REST 3 ARE BELOW IT.
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SO NEXT MULTIBAGGER THESE THREE COMPANIES GOING TO BE.
YESTERDAY I POSTED ABOUT CHEAPEST STOCK, MANY PEOPLE POSTED ABOUT SHIVA, BURNPUR AS MULTIBAGGER.
SO THEY CAN SEE THIS
HOW A COMPANY BECOME MULTIBAGGER WITHOUT MARGIN.
NOW QUESTIONS IS WHAT CAUSES LESS MARGIN.
SO THOSE COMPANIES WHICH HAVE HIGH DEBT ON THEIR BALANCESHEET PAY HIGH INTEREST MORE THAN PROFIT.
EXCEPT THIS HIGH TRANSPORT, FREIGHT CHARGES, EMPLOYEE COST, MANAGEMENT EXPENSE, DEPRECIATION ALSO REDUCES MARGIN.

ROTO PUMP VS SHAKTI PUMP

ROTO PUMP VS SHAKTI PUMP
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1:MARKET CAP
SHAKTI PUMP : 835 CR
ROTO PUMP : 174 CR

2: PRICE TO EARNING
SHAKTI PUMP: 40.60
ROTO PUMP : 26
💥 💥 💥 💥 💥 💥
PRICE TO BOOK
SHAKTI PUMP : 3.82
ROTO PUMP : 2.72
💥 💥 💥 💥 💥 💥 💥 💥
SALES GROWTH
SHAKTI PUMP : 56%
ROTO PUMP : 7%
💥 💥 💥 💥 💥 💥 💥 💥 💥
EBIDTA GROWTH
SHAKTI PUMP :185%
ROTO PUMP :35%
💥 💥 💥 💥 💥 💥 💥 💥 💥 💥
BOOK VALUE GROWTH
SHAKTI PUMP : 19%
ROTO PUMP : 14%
💥 💥 💥 💥 💥 💥 💥 💥 💥 💥
EV TO EBIDTA
SHAKTI PUMP : 14.30
ROTO PUMP : 9
💥 💥 💥 💥 💥 💥 💥 💥 💥
NET PROFIT MARGIN
SHAKTI PUMP : 4.76
ROTO PUMP : 4.92
💥 💥 💥 💥 💥 💥 💥 💥 💥
MARKET CAP TO SALES
SHAKTI PUMP : 2
ROTO PUMP : 1.7
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CONSIDERING ALL THE POINTS SHAKTI PUMP ACHIEVED HIGHEST GROWTH BEING THE LEADER IN THIS INDUSTRY BUT CONSIDERING VALUATION ROTO PUMP HAD MORE UPSIDE AND ATTRACTIVE VALUATION.
ROTO PUMP ALSO GRABBED MANY EXPORT DEALS SO IN COMING YEARS CHANCES OF VOLUME GROWTH MORE.

BRIEF-Roto Pumps gets export order worth 24.3 mln rupees http://reut.rs/2piSRQE via @ReutersIndia

Why large cap not good for long term.

USUALLY LARGE CAP IS THOUGHT AS A SAFE BET BY INVESTORS AS LONG TERM.
🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️
BUT UNFORTUNATELY THEY NEVER THINK THOSE LARGE CAP WERE GOOD BET FOR LONG TERM NOT NOW BUT 10 YEARS BEFORE.
🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️
WHY
BECAUSE THEIR EARNING IS CONSTANT NOW.
THE SECTOR THEY BELONG TO HAVE MUCH SMALL COMPETITOR WHICH AFFECT THEIR EARNING.
THESE LARGE CAP HAVE ALREADY BEEN GROWN.
YOU MAY HAVE SEEN BIG INVESTORS LIKE PORINJU, DOLLY KHANNA, RAKESH JHUNJHUNWALA ALWAYS INVEST IN MID CAP AND SMALL CAP.
🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️
AND THESE SMALL COMPETITOR ARE GOOD BET FOR LONG TERM BECAUSE THEY HAVE TO GROW.
LARGE CAP ARE AT THEIR SATURATION POINTS.
YOU CANT EXPECT SUN PHARMA TO BE MULTIBAGGER.
YOU CANT EXPECT SBI TO BE MULTIBAGGER.
YOU CAN CHECK THEIR LAST 5 YEARS PRICE HISTORY WHICH IS ALMOST SAME.
SO WHY YOU EXPECT THESE WOULD GIVE GOOD RETURNS IN NEXT 5 YEARS.
🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️
SO FORGET TV STOCKS
LIKE
SBI,
INFOSYS
TATA MOTORS
TECH MAHINDRA
WIPRO
TATA STEEL
RELIANCE GROUP
🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️🛏️
AND AT LAST ONE WORD REMEMBER
GREAT COMPANY DOES MOT MEAN GREAT RETURN.

KAMDHENU MULTIBAGGER IN THE MAKING

KAMDHENU MULTIBAGGER IN THE MAKING

THIS YEAR WE WITNESSED THE GROWTH OF INFRA,REAL ESTATE,ELECTRICTY SECTOR.

THESE ARE THE SECTOR WHICH CREATED DEMAND FOR STEEL AND ITS ANCILLIARY PRODUCTS.

RECENTLY THE GOVERNMENT OF INDIA HAS ISSUED NATIONAL STEEL POLICY FOR 5 YEARS AND ITS GOING TO GIVE HUGE BOOST TO STEEL COMPANIES.

GOVERNMENT WILL FOCUS ON INFRA AND SMART CITIES FOR NEXT 2 YEARS AND MAKE HUGE EXPENDITURE OVER IT.

NOW LETS TALK ABOUT A STEEL RELATED STOCK WHICH IS KAMDHENU ISPAT CMP@115 .

KAMDHENU TMT IS THE ONE OF THE BIGGEST LARGEST TMT SELLING BRAND IN COUNTRY.EXCEPT THIS

KAMDHENU PAINTS ALSO GETTING MARKET BRAND IN PAINT INDUSTRY ACHIEVING 200 CR SALES LAST YEAR.

KAMDHENU FRANCHISEE BUSINESS MODEL MUCH SUSTAINABLE NOW AFTER DEVELOPING SUCH A BIG BRAND.

KAMDHENU HAS MORE THAN 8000 DEALERS IN MARKET .

IN 2015 KAMDHENU WON THE “WORLD’S GREATEST BRANS 2015 ASIA& GCC” AND AISA MOST PROMISING BRAND.
KAMDHENU LIMITED MANUFACTURES TMT BARS WHICH ARE THERMOS MECHANICAL TREATED USING THE WORLD’S LEADING TECHNOLOGY FOR HIGH YIELD

COMPANY TURNOVER INCLUDES 78% OF TMT STEEL AND 22% OF PAINTS.

KAMDHENU PRODUCTS INCLUDE

  1. KAMDHENU TMT BAR
  2. KAMDHENU SS 10000
  3. KAMDHENU WIREBOND
  4. KAMDHENU NXT
  5. KAMDHENU PLYWOOD
  6. COLOUR COATED SHEETS

 

KAMDHENU LIMITED VALUATION

SALES IN 2016 : 841 CR
SALES IN 2017 : 780 CR
SALES GROWTH : (-7%)
LAST YEAR DUE TO DEMONETIZATION AND SLOWER GROWTH IN INFRASTRUCTURE, HOUSING SEGMENT AFFECTED SALES HOWEVER COMPANY MAINTAINED ITS MARGIN.

EBIDTA IN 2015: 30.14
EBIDTA IN 2016 : 31.86Cr
EBIDTA IN 2017: 33.68Cr

EPS IN 2015 : 3.29
EPS IN 2016 : 3.34
EPS IN 2017 : 3.89

CURRENT MARKET CAP OF KAMDHENU IS ONLY 270 Cr, CONSIDERING ITS BRAND IT DOESN’T JUSTIFY IT.

IF WE SEE LAST 3 YEARS
ROCE AND ROA WHICH IS VERY IMPRESSIVE.
COMPANY IS EACH YEAR PAYING TAX OVER 30%.
IN LAST 5 YEARS CASH FLOW FROM OPERATION ALWAYS POSITIVE.
PRESENT CREDIT RATING FOR SHORT TERM FROM ICRA A2 AND LONG TERM ICRA STABLE.

CONSIDERING ITS CONSISTENT PERFORMANCE AND GROWTH OF THE INDUSTRY KAMDHENU CAN BE MULTIBAGGER IN NEXT ONE OR TWO YEARS.