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Saturday, April 26, 2014

Can you identify the stock? - My next find# 2


Considering the enthusiastic response that I got for my previous stock find, I thought to share one more. Let’s see who many of you could give the correct answer to this one. Please see the clues below:

  • Looks like a Consumer durables company but it operates in three segments which makes it different from a ‘typical’ consumer durables company from this segment
  • The segment associated with Steel Structure is the largest segment of the company
  • Market cap is almost 1/10th of the revenue
  • The company has debt in its book, almost half of its total revenue
  • Stock Price is less than half the book value
  • PE is less than 5 and dividend yield is more than 2%
  • The company has a history of more than 50 years
  • Strong OCF
  • The most important point: promoters are continuously increasing the stake in the company. They bought more than 15 Lac shares in last 5 quarters
  • The company is showing superb growth Dec QTR revenue and NP have grown YoY basis by 19% and 38% respectively while the Sep QTR revenue and NP have grown YoY basis by 34% 44% respectively. Not only growth in topline and bottom line the margins have also improved
  • The ROE is in double digit.

Disclosure: while writing this, I or my family members do not hold the stock.

Look forward to receiving the name of the company. Please send it to my id niteen.dharmawat@gmail.com

Niteen S Dharmawat

p.s.:  Out of hundreds of responses that I received of the last stock, 5 are correct and I am still not disclosing the name to give another opportunity. Wait till 17th May for next meeting of Equity Pune... May cover the stock in the meeting.

Tuesday, April 22, 2014

Can you identify the stock? - My next find


I am working on a new stock. Giving some hints about it below. Can you identify the stock? If so you can write to me at niteen.dharmawat@gmail.com
  • This company serves the agriculture sector.
  • It has a track record of continuous dividend payment for the last more than 15 years.
  • Generates free cash flow in 2.5years that is equal to its market cap
  • Book value more than its price
  • ROE in double digit
  • Very strong OCF
  • PE in single digit and growth in double digit
  • Revenue more than doubled in last 5 years
  • This year expected to double profits compared to in what it was 6 years ago
  • The valuation is dismal, market cap almost 1/3 of its revenue
  • Promoters holding is strong, no pledging. FIIs holding more than 10%
Look forward to receiving the name. Please send it to my id niteen.dharmawat@gmail.com

Niteen S Dharmawat

Sunday, April 20, 2014

Sensex Possibilities: a guest post


I have written a guest post for Subhankar.

In a guest post, Sensex Possibilities, I tried to look at likely Sensex levels now and in the future, based on the Market Cap to GDP ratio. History shows that Sensex doesn’t rise continuously to higher levels without occasional sharp down turns. However, the analysis provides a long-term view of possibilities.

Please share your views.

Niteen S Dharmawat