Fedders Lloyd Corp updates

Fedders Lloyd Corp was one of the quiz questions covered when it was at around Rs53 about 4 months ago. Please find below the updates post recent quarterly results. The stock has reacted sharply to the results.

The profit has come down and I have given an explanation below. 

Some good points

- the promoters stake continuous to be healthy with no pledging. They increased the stake in last Dec by around 2.3%

- the stock is cheap with a good brand

- the company has presence in railways and defense sectors and may benefit from the actions taken by the new government.

- the operating profit margins are very good and have improved

The immediate concerns are:

- the interest component has increased to Rs33 Crore from 9Cr a year ago and 13Cr in last quarter. Had this not been such a steep rise the profits would have been much better. We do not have the info as of now to understand the rise in interest cost.

See the original posting: http://dharmawat.blogspot.in/2014/04/can-you-identify-stock-my-next-find-2.html

Disc.: No holding in the stock.

Cheers,

Niteen S Dharmawat
Blog: http://dharmawat.blogspot.com/
Twitter: @niteen_india
Facebook: https://www.facebook.com/dharmawat
slideshare: www.slideshare.net/ndharmawat/

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IMPORTANT DISCLAIMER: Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective. The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the discussion thread above/anywhere in communication. It is safe to assume that I, my family, friends have vested interest in the stock idea discussed here. Please do your homework and take the help of a qualified advisor before you take any financial decision.

Snowman Logistics Ltd IPO: Avoid

Received few queries about Snowman Logistics IPO. These are my two pence worth:

- Good part is the IPO funds are getting used in the company.

- Though the company is good, the issue seems to be expensive to me.

- At higher price band 788cr mkt cap + 88 cr debt for a company with 23Cr PAT and 155Cr revenue of 2013

- Also retail portion is just about 20Crore so we may have difficulty in allotments.

I do not find a strong conviction to invest in this IPO. However, you never know. In a bull market anything is possible. The stock may still touch new highs after listing. Take your decision based on self conviction.

Some reference docs:

http://www.edelweisspartners.com/Mutual%20Fund%20Info/Product%20Note%20-%20Snowman.pdf

http://www.moneycontrol.com/news/ipo-news/crisil-assigns-45-grade-to-snowman-logistics-ipo_1052297.html

Launch Date	26th of August
Issue Period	Opening date: 26th August; Closing date: 28th August 2014
Exchange	Listing on both NSE and BSE
Issuer	Snowman Logistics (“Snowman”)
Offer Type	Initial Public Offering / Reg S
Offer Size	Total	42 Million Equity Shares
Net offer	25.23% of Post issue paid-up equity share capital
Offer Price	[ 44 - 47 ] Min Retail 300 shares
Issue Split (No. of shares)	QIB Portion: Atleast 75% of the issue  (31,500,000) Non-Institutional portion: Upto 15% of the issue (6,300,000) Retail Portion: Upto 10% of the issue  (4,200,000)
Use of proceeds	· Capital expenditure for setting up new temperature controlled and ambient warehouses · Long term working capital and · General corporate purposes
Current Shareholding			Pre-Offer	Post-Offer
	Gateway Distriparks		54.04%	40.41%
	Norwest Venture Partners		13.78%	10.30%
	Mitsubishi Corp		12.57%	9.40%
	IFC		12.40%	9.27%
	Others		7.21%	5.39%
	Public		-	25.23%
Syndicate Member	HDFC Securities Limited

Cheers,

Niteen S Dharmawat
Blog: http://dharmawat.blogspot.com/
Twitter: @niteen_india
Facebook: https://www.facebook.com/dharmawat
slideshare: www.slideshare.net/ndharmawat/

Linkedin: in.linkedin.com/in/dharmawat/

IMPORTANT DISCLAIMER: Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective. The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the discussion thread above/anywhere in communication. It is safe to assume that I, my family, friends have vested interest in the stock idea discussed here. Please do your homework and take the help of a qualified advisor before you take any financial decision.

Suni Hitech Engineers - BSE: 532711, NSE: SUNILHITEC (June 14 Qtr Result updates)

Sunil HiTech was identified at Rs53 about 6 months ago and booked profit at around 145 about 2 months ago. The stock is now around Rs 122 levels.

My original post: http://goo.gl/wqlq6o

It has given good set of numbers for first quarter ended on 30th June 2014.

- YoY quarterly Sales increased by 29% and profit by 47%
- Comparing QoQ Sales and NI may not be appropriate as the March quarter is hyper active for such companies/industry
- Promoters holding increased by around 4.5% due to Conversion of Warrants.
- High finance cost still remains an area of concern.
- See the original post + comments to understand the rational for investment in Sunil Hitech: http://goo.gl/wqlq6o

See results here: http://www.bseindia.com/xml-data/corpfiling/AttachHis/Sunil_Hitech_Engineers_Ltd_140814_Rst.pdf

Disc: Entered into the stock.

Cheers,
Niteen S Dharmawat
Blog: http://dharmawat.blogspot.com/
Twitter: @niteen_india
Facebook: https://www.facebook.com/dharmawat
slideshare: www.slideshare.net/ndharmawat/
Linkedin: in.linkedin.com/in/dharmawat/

IMPORTANT DISCLAIMER: Investment in equity shares has its own risks. Sincere efforts have been made to present the right investment perspective. The information contained herein is based on analysis and up on sources that we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the discussion thread above/anywhere in communication. It is safe to assume that I, my family, friends have vested interest in the stock idea discussed here. Please do your homework and take the help of a qualified advisor before you take any financial decision.