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Tuesday, April 22, 2014

Can you identify the stock? - My next find

 Hi,

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

Cheers,
Niteen S Dharmawat



27 comments:

Unknown said...

ATUL LIMITED

Unknown said...

Gsfc

Niteen S Dharmawat said...

@Sunil. I know people are counting on Modi to come to power but it is not GSFC

Niteen S Dharmawat said...

@Rajesh, Atul is another very good company identified at very low levels & holding. Atul is still undervalued compared to the growth it has shown. But the stock here is not Atul. Keep trying.

Vinayak said...

Niteen, the problem with this company is the enormous amount of debt; over 2.5x d/e, margins have taken a beating on average at operating level and the sector remains highly regulated. Besides, good companies have killed themselves by taking too much debt. This is good, but you can get better companies around...

Unknown said...

kothari product

Niteen S Dharmawat said...

@Yogesh,
No, not Kothari Products. Keep trying

Niteen S Dharmawat said...

@Vinayak,
I don't agree with D:E ratio. It is flawed ratio. The better ratio that I always advocate is Debt:Net Profit. Also D:NP ratio should not be seen in isolation. It should be ensured that CFO is comfortable else D:NP ratio will be flawed.

Having said that, the D:E ratio of the company is not 2.5x but much below. So keep trying.

DD said...

DHANUKA agri

Unknown said...

KAVERI SEEDS

Niteen S Dharmawat said...

@DD. This is not DHANUKA agri.Keep trying.

Niteen S Dharmawat said...

@Shaik Rasheedbasha. This is not KAVERI SEEDS. The market cap of Kaveri is Rs4000Cr+ while the revenue not even 1000Crs. So does not fit in the list of clues provided. Keep trying.

Abhay said...

REI Agro

Babu said...

Bharat Agri Fertilisers

Niteen S Dharmawat said...

@Abhay. REI Agro is not the stock. Keep trying.

Niteen S Dharmawat said...

@Babu. Bharat Agri Fertilisers is not the stock. It does not have a history of paying dividends of more than 15 years. Keep trying.

Unknown said...

Piccadily Agro Industries Ltd

Niteen S Dharmawat said...

@Rahul, Piccadily Agro Industries Ltd is also an interesting company but it is not the stock that I am talking about. It does not have a history of dividend payment of more than 10 years. Keep trying.

Ram said...

GNFC

Niteen S Dharmawat said...

@Ram. This is not GNFC. Keep trying.

DD said...

Aries agro

Rapidriser said...

Either Chambal Fertilisers or Deepak Fertilisers

Anonymous said...

Can you please share one more input, FII limit is the only issue here as you have stated that it is 10+%

milind said...

Jain irrigation

Tushar said...

for Jain Irrigation: Book Value is less then current price .. so crit. not met :(

I find it interesting as 15 years dividend record and 10+ FII holding in agri. space

Rapidriser said...

I think it is Deepak Fertilisers after all.

Niteen S Dharmawat said...

The first pick is 'Deepak Fertilisers and Petrochemicals Corporation'.

Disc: I hold the stock.