WEEKLY PICK- RAMCO SYSTEMS!!

**ABOUT COMPANY**
Ramco Systems, part of the Ramco Group, has delivered enterprise software and services since 1989. Today, Ramco is a global provider with customers in 35 countries. To keep pace with today's customer-driven business environment, companies must re-think their business processes. Enterprise applications now need to adapt to the business.
Ramco delivers solutions that address this with flexible enterprise applications that can be delivered quickly and cost-effectively into complex environments. It also gives companies the agility they need to stay competitive by enabling fast, flexible deployment and change on demand of business applications.


**CLIENTELE**
The company is having a long list of clients it 100,000+ users in 1,000 customer locations across 35 countries. Select customers include:
1) ABB Ltd.
2) Adams (Thailand) Ltd.
3) Amtek Auto Ltd.
4) Columbia Helicopters
5) East India Hotels
6) ICICI Bank
7) JK Cement
8) Lotte India
9) Jeju Air etc.


**SERVICES**
1) APPLICATION MAINTENANCE: Enhances one's existing portfolio with custom applications spanning across technology platforms.

2) INFRASTRUCTURE MAINTENANCE:
Ramco was the first company to provide global ERP-on-demand. They remain the premiere source for all the IT function needs, providing comprehensive, end-to-end infrastructure management services.

3) VALIDATION SERVICES:
From a large-scale transformation initiative to specific point solutions, Ramco offers the businesses end-to-end validation services for enterprise applications, integration technologies, compliance, and web applications.

4) OnDEMAMD SERVICES:
The solution streamlines and integrates multiple functions and systems into one solution and gives total visibility and control of operations

5) BUSINESS PROCESS OUTSOURCING:
Ramco platform-based BPO services span one's enterprise function needs, including finance and accounting; human resource management systems; and procurement and analytics.

**FINANCIALS**
TRIGGERS:
1) June quarter results were pretty good. (See MY TAKE ON QUARTERLY RESULTS BELOW).
2) Technically good. (See TECHNICALS BELOW).

BACKLOGS:
1) Promoters, FIIs and DIIs holding decreased. (However, the number of shares held by the Promoters has remained constant during the period.)

MY TAKE ON QUARTELT RESULTS:
Overall June quarter results were good; both QoQ and YoY.
YoY: Net sales increased 13.86% whereas PBDIT increased 142%. PAT increased by more than  320% and OPM increased by 10.35%.
QoQ: Net sales increased by 6% almost and PBDIT increased by 17.53%. NP increased by 58% and OPM increased by almost 2%.

FUTURE PLANS:
Ramco is planning to Introduce Corebanking Analytics Solution. Ramco targets 5,000 users by March next for ERP service.


**TECHNICALS**
Charts shows a strong support zone around 338-344 levels and a good resistance around 385-394 zones. It broke it's resistance with good volumes (highest volumes in last one month). It corrected almost 45% from its 52-week high and recovered 20% in just few trading sessions! It's currently on a breakout and should continue the rally in near term.


**MY TAKE**
It's a clear buy for next 10-15 trading sessions.


DISCLOSURE: All the information is based on the writer's own research/gathered from public domains. This report and information herein is solely for information purposeand may not be used as an offer document or solicitation of ofer to buy or sell or subscribe for securities or other financial instruments. This article is being supplied only for your information and may not be redistributed/reproduced or passed on directly or indirectly to any other person or published, copied, in whole or in part for any other purpose. This information is subject to change without any prior notice. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The investment or discussed or views expressed may or may not b me suitable for all investors. The blogger reserves the right to make modifications and alterations to this statement as may be required from time to time without any prior approval. The writer of this blog is neither a researcher nor related to any brokerage houses. The writer might be himself invested in the stock after his own research so the views might be biased. One must do their own research before investing. The writer isn't advertising any website for his own selfish use. The writer of this blog won't be held responsible for any profit/loss in your investment/trading career.

SOM DISTILLERIES AND BREWERIES LTD- QUICK BUCKS!

Article as on 3rd August 2018:-



**ABOUT COMPANY**
Som Distilleries and Breweries, incorporated on March 26, 1993, is engaged in manufacturing beer and Indian made foreign liquor. The company owns brands such as Hunter Extra Strong Premium Beer, Legend Premium Beer and Legend Premium Lager Beer. It has manufacturing facilities in Bhopal, where it has brewing, storing and layering facilities. The company's manufacturing facilities are spread over 20 acres in the Raisen district of Madhya Pradesh with an annual capacity of 3.6 million cases.
A joint collaboration with Falcon Traders in Goa will enable the company to venture in the Goan markets for the very first time with its own and other brands. Sales would be promoted in the western and southern markets through this alliance.
Among the few companies which have production and marketing infrastructure for Indian Made Foreign Liquor (IMFL) and beer products, the company develops export markets for its products in Europe, Middle East and CIS countries and has been exporting products to London. It undertakes contract manufacturing for clients including Mendoza Vino , USA and United Breweries.


**TRIGGERS**
1) Promoters holding increased by 0.07%.
2) When compared YoY, Mar2018 profits growth was around 170%, whereas topline growth around 50%. The June quarter is usually the best quarter for the company.
3) The entire alochol sector is in bull run and all its peers are posting good results.
4) DER is lowest, when compared to other H.Y. reports.
5) operating profits to interest highest at 7.95 times.
6) ROCE highest at 29% (H.Y. periods)
7) Debtors turnover ratio highest at 6.13times (H.Y. period)


**BACKLOGS**
1) RM cost is more than 50% of total turnover.
2) Low promoter holding.
3) Debt is high compared to its peers.
4) sales to mcap ratio is more than 2 and Price/book is 4.7


**TECHNICALS**
The scrip is consolidating between 225-250 range for more than a month. Immediate resistance is around 260-265 levels and next one is 298-307 levels on closing basis. There is a strong support at 220-225 levels. A close above 265 for 2 consecutive days should lead to next resistance zones in less than a week.

**MY TAKE**

SDBL can give decent returns in next few months. A good bet for MTT 270/293/321 from CMP 244.

DISCLOSURE: All the information is based on the writer's own research/gathered from public domains. This report and information herein is solely for information purposeand may not be used as an offer document or solicitation of ofer to buy or sell or subscribe for securities or other financial instruments. This article is being supplied only for your information and may not be redistributed/reproduced or passed on directly or indirectly to any other person or published, copied, in whole or in part for any other purpose. This information is subject to change without any prior notice. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The investment or discussed or views expressed may or may not b me suitable for all investors. The blogger reserves the right to make modifications and alterations to this statement as may be required from time to time without any prior approval. The writer of this blog is neither a researcher nor related to any brokerage houses. The writer might be himself invested in the stock after his own research so the views might be biased. One must do their own research before investing. The writer isn't advertising any website for his own selfish use. The writer of this blog won't be held responsible for any profit/loss in your investment/trading career.

GM BREWERIES- A POTENTIAL MULTIBAGGER!

Article as on 3rd August, 2018:

**ABOUT COMPANY**

             GM Breweries was incorporated in the year December 1981. The company is engaged in the manufacture of alcoholic liquor. It blends and bottles alcoholic liquor and concentrates more on country liquor. It has its manufacturing unit in Thane district of Maharashtra with installed capacities of 82.6 million bulk liters of country liquor and 12.4 million bulk liters of Indian made foreign liquor. 

              The company markets its products brandy, rum and whiskey under brand names Pioneer Doctor Brandy, Pioneer Special Doctor Brandy, Hot Shot Rum and Reporter Choice Whiskey. The company has imported oakwood barrels to mature the whiskey in order to impart the liquor with the correct character, color, strength and distinctive taste.

                The company has a major presence in Mumbai, Navi Mumbai and Thane and is the single largest manufacturer of country liquor in Maharashtra.

**PRODUCTS**

1) GM SANTRA

                 The most leading and Prestigious blend, made from Molasses based recitified spirit. Ruling at No. 1 Position amongst Country Liquor Industry for the past 12 years, in the State of Maharashtra.

2) GM DOCTOR

                 One of the most precious brand made of sugarcane juice spirit Flavour and is ruling the market last 25 years.

3) GM LIMBU PUNCH

                 A mixed punch blend of Lemon and lime flavours along with rectified spirit from MPVD plant. 

**FINANCIALS**

                Almost all the sales comes from country liquor. It contributes more than 25% market in Maharashtra. It is the largest manufacturer of country liquor in Maharashtra. 

                Their main raw material is rectified spirit. Raw material cost as a percentage of sales is lowest when compared with last 2 years.

Mar 2016: 18.27%

Mar 2017: 20.21%

Mar 2018: 17.30%.

As per AR the price fluctuations and the shortage can affect the OPM. 

                  The profits have been increasing over the last 3 years.

Mar 2015: 18.63crs

Mar 2016: 58.31crs

Mar 2017: 43.92crs

Mar 2018: 72.90crs.

The profits will continue to increase over the next 3-5 years.

                  It has a capacity of 13.76 Crore Liter per annum. Currently, 49.20% is in use. The capacity utilisation of the co is as follows:

2010: 42%

2011: 44.40%

2012: 45.39%

2013: 47.13%

2014: 43.39%

2015: 45.43% 

2016: 46.15%

2017: 46.56%

2018: 49.20%

It might not require any capacity expansion for next 5 years atleast(mentioned innAR2017-18). 

                  Company generated highest cash flow in last 3 years. Finance cost decreased by more than 85%. Company's non current investment increased by 107.7crores in last 2 years. The company received dividend income. The company invested more than 62crs in FDs. Invested around 12crores in other plants and assets.

                    

Cons:-

1) The recent OPM was 7%. This decrease in OPM is seen despite a decrease in raw material, employee/selling and admin/Power and fuel expenses.

2) The Company has been facing difficulty also due to

very high levels of taxation and frequent changes in

laws. In fact the exorbitant rate of taxation is one of

the factors, which breeds duty evasion. 

3)  The high level

of fluctuations in the prices of its main raw material

as well as acute shortage

in the availability of Spirit are the constraints faced by the company for past several years.

**INDUSTRY**

                    According to the 68th report of the National Sample Survey Office (NSSO) on Household Consumption of Various Goods and Services in India, in 2011-12 (the last year for which the data is available), per capita alcohol consumption in rural India increased by nearly 28 per cent, while that of urban India rose by nearly 14 per cent.

                    The two states in the southern part of the country, i.e. Andhra Pradesh and Telangana are the highest alcohol consuming states in India. According to the NSSO data, Karnataka consumes 101 ml of foreign liquor/wine over 30 days while neighbouring Maharashtra drank a mere 10 ml over the same period.

                   The Indian Made Foreign Liquor (IMFL) segment is estimated to be valued at more than INR 3,000 Bn by 2026, expanding at a CAGR of 5.2% over the forecast period.Rapid increase in urban population is one of the key factors that is boosting the India alcohol market. Traditionally, brown spirits have been targeted at the urban consumer. As such, increasing urban population coupled with factors such as increasing disposable income and growing preference for whiskies is expected to create avenues for growth of the alcohol market in India. Changing demographics is further expected to boost the India alcohol market. As of 2014, over half the country’s population (53%) was above the age of 25 years. Moreover, estimated median age of the country’s population for the same year was pegged at 27 years. The legal drinking age in India varies from state to state. For instance, 18 years in Goa, Uttar Pradesh and Karnataka; 21 years in Tamil Nadu and Andhra Pradesh; and 25 years in Maharashtra, Delhi and Punjab.

                    While many frown at the way India is guzzling, others say it’s encouraging how, with time, several taboos fell by the wayside. “There is so much more exposure today. People travel, their entire way of thinking has changed. Enjoying a drink is not such a big thing anymore,” says Adarsh Shetty, president of the Indian Hotel and Restaurant Association of Maharashtra. His state recorded an annual consumption of 3,228.28 lakh bulk litres of country liquor in 2016, the most preferred alcoholic drink in the state.

                   Sociologist Bhaichand Patel, who authored Happy Hours: The Penguin Book of Cocktails in 2009, says the “situation has changed remarkably, especially for women”. “Earlier, women who drank were frowned upon. My wife wouldn’t drink before my parents, but my daughter has no qualms about drinking with us. That is the change,” he says, noting how “India did not have a culture of drinking.” “Before the 1960s, both Delhi and Mumbai were dry. Even five-star hotels didn’t serve alcohol. The only people who could drink were foreigners. Some of us got rum from the Navy canteen. We got a bottle of Black Knight whiskey for Rs 50. Even the rich had Indian whiskey in the ’70s. Not any longer,” says Patel, adding that India remains the largest consumer of Indian whiskey, and comes second only to the US in consumption of Scotch whiskey.

(OVERALL INDUSTRY IS HIGHLIGHTED AND AMONG DIFFERENT STATES ONLY THE MAHARASHTRA STATE IS FOCUSED!)

                     

**SHAREHOLDING PATTERN**

                     Promoters hold around 74.43%, and promoter with highest holding is JIMMY WILLIAM ALMEIDA who holds 61.76%. second highest promoter holding is ALMEIDA HOLDINGS PVT LTD holding 10.68%. They're is no change in promoter holding since last 1 year. There are no pledged shares. Highest public shareholder is MUKUL MAHAVIR AGRAWAL who holds 1.71%. 18 FIIs have invested in the company whose total holding is 2.43%. FIIs have increased 0.24% of their holdings compared to march Qtr. MF holdings have also increased by 0.29% since last Qtr.

**TECHNICALS**

                      After touching all time high of 969 the scrip corrected more than 25% lingering around 700 levels. The charts show strong support around 665-680 levels. Below these levels the scrip can dip to 630-610 levels, where the scrip must be averaged. Immediate resistance around 740-755 zones and long term resistance level around 938-955 levels. 

**MY TAKE**

                     CMP 705 may not be the bottom and share price can be seen even around 685 levels. The company posted great quarter results. More than 15% increase in topline and more than 115% increase in bottomline. There was a decrease in Raw material prices and an increase in other incomes. Overall results were quiet good. If the company continues to post such good numbers to continue throughout then we can expect a 3-5x returns.

DISCLOSURES:- All the information is based on the writer's own research/gathered from public domains. This report and information herein is solely for information purposeand may not be used as an offer document or solicitation of ofer to buy or sell or subscribe for securities or other financial instruments. Tgis article is being supplied only for your information and may not be redistributed/reproduced or passed on directly or indirectly to any other person or published, copied, in whole or in part for any other purpose. This information is subject to change without any prior notice. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The investment or discussed or views expressed may or may not b me suitable for all investors. The blogger reserves the right to make modifications and alterations to this statement as may be required from time to time without any prior approval. The writer of this blog is neither a researcher nor related to any brokerage houses. The writer might be himself invested in the stock after his own research so the views might be biased. One must do their own research before investing. The writer isn't advertising any website for his own selfish use. The writer of this blog won't be held responsible for any profit/loss in your investment/trading career.

EON ELECTRIC- A POTENTIAL MULTIBAGGER!!!

 Article as on 24th July, 2018.
All the data's mentioned below will be as of AR2016-17 since 2017-18 is still not published. New information will be updated on monthly basis.


**ABOUT COMPANY**
Eon elect(NSE CODE:EON; BSECODE:532927), after recent fall of 70% from the yearly highs seems like a decent long term bet, it's leading manufacturer of LT Electrical Switchgear Equipment.

Eon electric specialises in many products. The products are mentioned below:

#Gold plus
MCBs
HRMCBs
RCCBs
DBs

#Goldline
Goldline MCBs
 Goldline RCCBs
Goldline DBs
Silverline
 Silverline MCBs  

#Industrial Products
ACBs
MCCBs
Changeover Switches
Switch Disconnector Fuses
HRC Fuses & Fuse Bases
Rewirable Switches
Feeder Pillars
 MPCBs
Contactors
Time Switches
Thermal Overload Relays

#Lighting Products
CFLs
FTLs
Energy Meter
Wires and Cables
Modular Wiring

It's manufacturing units are mainly spread over northern region but has set up 3 large plants  one for the manufacture of switchgear, other for lighting products and third for manufacture of wires at SIDCUL, Haridwar, the tax free zone of Uttrakhand.

The company has collaborated with Saudi National Glass for setting up a plant in Saudi Arabia for manufacturing of CFL HID Lamps. The company has an all-India marketing network with 30 offices across India and network of over 550 authorized distributors and over 15,000 Electrical Retail outlets spread all over India and overseas.

**FINANCIALS**
As per the data, around 65% of revenue comes from lighting products and 20% from cable wire. (These percentage are almost same every year even if we don't have 2018 reports we can depict a rough picture.)Lighting segment has been allocated highest cap. RMC as a percentage cost of sales is decreasing over years, currently the RMC is 70% which was around 80% 3 years back.

Yearly EPS of 2014 was -15 and of 2017 is 2.49. Yearly EPS of 2018 was 0.27 but it was mainly due to decrease in revenues.

No comments on Cash flow and Balance sheet. Waiting for AR2017-18. As per bal2016-17 investment is around 45 crs and the current mcap is 75 crs.

Operating profit margin for 5 years are
Mar2015:(-14%)
Mar2016:(-0.5%)
Mar2017:(4%)
Mar2018:(5.84%)
PBDIT is 9.3crs vs 7.4crs


Cons:-
1. Operating profit to interest is lowest this qtr along the last 5 qtrs.
2. Debtors T/O ratio(HY) is continuously falling for last 3 years.
3. Cash and cash equivalent (HY) is lowest this qtr in last 3 years.
4. Debt-equity ratio(HY) is 0.78times highest in last 3 years.
5. Quarterly NET SALES, PBDIT, PBT, EPS is lowest in last 5 qtrs.


**SHAREHOLDING PATTERN**
Promoters hold around 62%, main promoter VPM elevtricals Pvt ltd. holds  around 35%. Anoyher promoter co VPM industrial services corporation holds around 13%. Promoter holding increased more  than 2% in last 4 qtrs. Highest shareholder is Rajasthan global securities Pvt Ltd which holds around 1.05% of the co. They have also invested in Vindhya telelinks which is in the wire industry though Eon is much more diversified.

CONS:-
pledged around 40% (pledged shares increased 8% this qtr)

**Technicals**

After touching multi-year high of 137 it corrected more than 70% making a new yearly low of 39. According to weekly MACD indicator it's bearish and slightly bearish as per monthly MACD indicator. As per weekly Bollinger bands it's mildly bearish, whereas it's bearish as per DMAs. As per 5-year charts it has a fairly strong support around 40-42 zones and a strong support around 31-33 zones. 

**MY TAKE**

I feel like CMP45 isn't the bottom and we can see the share price around 35 levels. I feel Q1FY2019-20 is one of the major qtrs. If the company continues to shows the growth which has been shown for FY 2013-14 till 2016-17, then this is one of the underrated multibagger. In my opinion over the span of 3-4 years the share price should be hovering around 140-160.

Any views/information/opinions are accepted and if the information is related to this scrip then it will be updated on the blog. 

DISCLOSURE: All the information is based on the writer's own research/gathered from public domains. The writer of this blog is neither a researcher nor related to any brokerage houses. The writer might be himself invested in the stock after his own research so the views might be biased. One must do their own research before investing. The writer isn't advertising any website for his own selfish use. The writer of this blog won't be held responsible for any profit/loss in your investment/trading career. 

JOINDRE CAPITAL SERVICES LTD - QUICK BUCKS!

About:-

Joindre group first venture, Joindre Capital Services, a pioneer in the field of retail broking was incorporated in 1995 by a group of professionals with vast & rich experience in Indian capital market.

The company has spread its business all over India. With major thrust on retail broking, the company has strong IPO and mutual funds division for the benefit of the clients. Research brings latest reports giving specific developments in the stock market. Being client-focused the company offers Internet trading platform. portfolio management services offers best schemes based on client's need of wealth creation.

Joindre Capital is member of National Stock Exchange of India Ltd., Bombay Stock Exchange Ltd. and many regional exchanges in India. 

Joindre Capital is also depository participant member of Central Depository Services Ltd.

Services offered by the company:-

• Retail Investments
• Institutional Investments
• Derivatives
• Mutual Funds
• IPOs
• Internet Trading
• Depository Services
• Portfolio Management Services
• Research
• Commodity Markets with MCX and NCDEX
• Gold & Commodity with DGCX

Other Group Companies:-

• Joindre Commodities Limited.
• Joindre DMCC.

Financials and overall co:-

PROS:

Good quarter numbers posted this FY! Expecting good numbers in coming quarters. company is virtually debt free. Small Equity base. Promoters hold 63.7% of total equity. Trading less than its BV of Rs. 37. Trading at 9 P/e against 28 industry P/e. Regular Dividend paying company. 33crores Reserves against 13crores Equity. 

CONS:- 

Though Contingent liabilities is decreasing every FY, still it stands at 19crores which is too huge for a company with 13crore equity base, 50crore mcap! Other income helped the company to post profit. Had other income been 0 the EPS would have been -2. Company earns 0 from its operations! Company's sales are constant over past 5 years. No improvement in the financials of the company in operations front. 

Technicals:- 

Charts showing strong resistance at 37-39 zoneson closing basis. May correct from these levels. Above 37-39 on closing basis for 2 consecutive weeks we may see aa straight rally towards 50 zones. Strong support at 26-29 zones. 

My take:- 

Joindre, recommending at 32 can give decent returns over next 2-3 quarters. Provided markets remain sound, initial target can be set as 50-55. 2nd target can be set as 75-80 in next 9-12 months. 

UPDATE 27th July,2018  (CMP 25) :-

Fundamentals still intact! The sector is not in action now...

Disc: - All the info is based on the writer's own research/gathered from public domains. The writer of this Blog is neither any advisor nor related to any brokerage houses!! The writer might be himself invested in the stock after his own research so the views might be biased. One must do their own research before investing. The writer isn’t advertising any website for his own selfish use. The writer of this blog won't be held responsible for any of your profit/loss in your investment/trading career!

GINNI FILAMENTS- QUICK BUCKS!

About:-

Ginni Filaments Ltd was incorporated on July 28, 1982 as a public limited company. The company was established with the objective of manufacturing cotton yarns. In September 1982, they obtained certificate of commencement of business.

                                                                            

Located in Tehsil Chatta, Distt. Mathura, Uttar Pradesh, GFL has consistently grown from one strength to another. Installed capacity today stands at 60336 spindles with a capacity of 1000 tonnes per month.

In January 1998, GFL embarked upon an ambitious expansion project by entering the arena for Open End Yarn. GFL has 1680 rotors with a capacity to produce 600 tonnes per month of open end yarn in the count range of Ne 6 to 20. Products have been well accepted by buyers around the world.

The company has also graduated into knitted fabrics and installed 26 knitting machines from M/s. Terrot and Mayer to produce Single Jersey, Interlock, Rib Terry and Lycra fabrics. Since April 2005, GFL has expanded into processed knitted fabrics. The complete machinery have been imported from Thies & Santex. Ginni has started working with some leading European brands and other global brands like Benetton, C & A, Allen Solly, Van Heusen, J C Penny etc. The company obtained the ISO 9002 certification as early as 1996 and also got the recognised as Trading house by the Govt. Of India.

In order to get fully vertically integrated and be present from fibre to fashion, Ginni Filaments Limited has entered garment business with it's first unit in Noida in Sept. 2006, with a capacity of 2,50,000 pcs per month. The capacity would be increased to one million pcs per month in a phased manner.

The plant for spunlace non woven fabrics with an installed capacity of 12,000 MT/p.a. which is the first of its kind in India commenced production in March, 2007 in Panoli Industrial Estate, Gujarat.

Products/ Business Divisions:-

The company is engaged in the manufacture of textiles, yarn, fabric, non-woven fabrics and garments. They operate in two business segments, namely textiles and others. The other segments comprises of consumer products, which include wipes made of spunlace fabric, which are used in personal hygiene, healthcare.

The company’s products include cotton yarn, non-woven fabrics, knitted fabrics and knitted garment. The company manufacturing units are located at Chhata, Noida and Haridwar. They have state-of-the-art spunlace non-woven fabric manufacturing facility at Panoli in Gujarat. The company’s consumer products include wet wipes, medical disposables, wound care, home care/ industrial wiping and private labeling.

1)    Yarn- Ginni Filaments is one of the leading integrated manufacturers of                  cotton yarn, processed knit fabrics and knit garments in India. The                company also produces spunlace nonwoven fabrics which are used                in personal hygiene, healthcare and other technical textiles.                            Branded products under Ginni brand are distributed all over India.

      Fabric -Single Jersey, Single Jersey with Lycra , Rib, Rib with             Lycra, Interlock, Pique, Pique with Lycra, Gassed Single Jersey,           Viscose Lycra ,Terry Fabric, Interlock Polyester Fabric, Polar               Fleece Fabric, Cotton Mélange Single Jersey, Cotton Mélange               with Lycra.

    2)    Textiles- In order to get fully vertically integrated & be present from fiber                    to fashion, Ginni Filaments has entered into garment business                        with its first unit at Noida (near New Delhi, India).

Financials and overall co:-

PROS:

Good Quarters posted, a turn-around indeed! Expecting good results to continue. Promoters holding 61% of total equity. Trading less than 1.5 Times of its BV. Mcap to sales is near 0.28 while giants in this sector trading at 2!

CONS:

Average returning ratios with high debt! Huge inventories showing incapability of the management of selling these goods. RM cost is high for the co near 60% of total turnover!

Technical :-

Facing resistance at 28-30 zones. A close above 30 for 2 consecutive days might give some boost. Volume on 27th feb 2017 was 3rd highest in last 6 months.

Triggers :-

1) No effect of demonetisation.

2) Export oriented biz- dollar strengthening will help it.

3) Good Q3 and also posted good numbers this FY.

4) 9-month EPS stands more than 300% of FY 2015-16 EPS.

5) High Expectations from upcoming quarters.

My Take:-

       Ginni can give decent returns in next few months. Recommended @25 on 11th Jan on Moneycontrol, India’s No.1 Financial Portal with MTT1:37.5  MTT2: 48 MTT3: 65.

UPDATE 25th July, 2018:-

Targets all completed! 

Disc: - All the info is based on the writer's own research/gathered from public domains. The writer of this Blog is neither any advisor nor related to any brokerage houses!! The writer might be himself invested in the stock after his own research so the views might be biased. One must do their own research before investing. The writer isn’t advertising any website for his own selfish use. The writer of this blog won't be held responsible for any of your profit/loss in your investment/trading career!

MOBILE TELECOMMUNICATIONSLTD- QUICK BUCKS!

About:-

Mobile Telecommunications (MTL) incorporated in 1994 is a public company having its stocks listed on Bombay Stock Exchange. MTL is an established player in the field of information technology. At present, it is engaged in development and marketing of software packages and manufacturing EPBT (electronic push button telephones).

Working with global original equipment manufacturers, it manufactures box assemblies as well as printed circuit board (PCB) assemblies for some of the best names in the business at its world-class facilities located at Nashik in Maharashtra. Assembly line services include cellular manufacturing, flow line, U-shaped assembly line, PC based testing of products, skilled operators, statistical process control, zero defect manufacturing, deliveries that are just-in-time every time, and set top box assembly. The PCB assembly line undertakes surface mounting device, plated through-hole, and chip-on-board assemblies and auto insertion for leaded components.

Enriched by the experience and motivated by the successful track record, MTL is starting a separate division Digitechtronics to make foray into Electronic Manufacturing services. The manufacturing facility will be put up at MTL’s factory located at Nasik, Maharashtra. The facility will be equipped to offer outsourcing solutions for manufacture of assembled product PCBs for mobile handset circuits, DVD players, Set Top Boxes, Cable Modem, Static Electronic Energy Meters, Digital Projector, Graphic Cards, Network Cards, PC Motherboard, etc.

Products:-

1)Cable Modem

2)Digital Projector

3)Graphic Cards

4)Mobile Handset Circuits

5)Network Interface Cards

6)DVD Player

7)PC Mother Boards

8)Railway Signalling

9)Set-Top Box

10)Static Electronic Energy Meters

11)Cable Modem (Graphical representation)

12)PCB

13)Dimmer Controller

14)Fan Regulator

15)Electronic Ballast etc. with or without material.

Services:-

1)Original Equipment Manufacturer (OEM)

2)Original Design Manufacturer

3)Electronics Manufacture Service Provider

Triggers :-

The company will post more and more profits in coming quarters... what I like about the company-

1) Expansion of wire and cable operations; i.e. the company has successfully commissioned its WIRE and CABLE plant and commercial has started from 2^nd week of December which will hopefully increase topline and bottom-line in the coming quarters.

2) They entered in alliance with SUNFAIR ELECTRIC WIRE CABLES MNC of electric cables to produce USB and power cables.

3) They provide e-cash register, positive effect of demonetization.

4) MT has opened SMT line operation in NAHSIK since this quarter

5) Company posted highest profit this quarter.

6) FIIs holding 15.2%.

7) Promoters holding increasing since last 3 quarters.

8) They are also into the business of pos machines, will be positively affected by demonetization.

9)And above all what I like is the management transparency and their dedication towards biz- the MD of the company Mr.Anil have forgone his managerial remuneration and several other directors dint took any financial benefit. Nothing else is required! I am waiting for 6-8mnths after going through the AR n QR!

My Take:-

       The company is a hold for 6-9 months. Recommending at 3.7 the writer has MTT1:5.5, MTT2:7, MTT3:9.

Disc:- All the info are based on the writer's own research/gathered from public domains. The writer of this Blog is neither any advisor nor related to any brokerage houses!! The writer might be himself invested in the stock after his own research so the views might be biased. One must do their own research before investing. The writer of this blog won't be held responsible for any of your profit/loss in your investment/trading career!

RAM RATNA- A POTENTIAL MULTIBAGGER

ABOUT:-

            RAM RATNA company is engaged in manufacturing of enameled copper winding wires.

Its products include modified polyester copper wires, polyesterimide wires, etc.

BRIEF ABOUT COMPANY:-

           The company was originally incorporated as Ram Ratna Winding Wires Pvt. Limited on July 21, 1992. Subsequently the company was converted from private limited to public limited and changed its name to Ram Ratna Wires Ltd.

           The company is engaged in manufacturing of enamelled copper winding wires. Its products include modified polyester copper wires, polyesterimide wires, polyurethane self solderable wires and dual coated wires.

           A leading conglomerate in the electrical industry and a global manufacturer, they collectively engineer every electrical need of a modern society through the four business lines they operate in:

                        i.            Wires and Cables

                        ii.            Winding Wires

                        iii.            Electrical Consumer Durables and Accessories.

                        iv.            Electro-Mechanical Multilevel Car Park Solutions

           Their approach to ingenious simplicity is built into all their products that are made available through distributors and retailers across 73 countries, globally.

PRODUCTS OFFERED BY THE COMPANY:-

           RRWL’s products are utilized in various electrical equipments such as transformers, cables, transmission lines, switchgears, capacitors etc. Its product portfolio comprises sixteen products that broadly fall into five categories:

                          i.          Enameled copper winding wires(ECW)

                          ii.         Enameled copper strips (ECS)

                          iii.       Submersible winding wire (SWW)

                          iv.       Bare copper strips (BCS)

                          v.         Enameled aluminum wire (EAW)

           Few other products (amongst 16) are: Modified polyester copper wires; Polyesterimide wires; Polyurethane self-solder-able wires; Dual coated wires; fibre glass covered strip; enameled fibre glass covered and varnished strips, etc. Its end products meet Indian and international standards including IS, IEC, JS and NEMA.

           The Company operates in the transmission and distribution (T&D) industry and is the first choice for large original equipment manufacturers (OEMs) and top electrical companies in India as well as MNCs. Through its dealer-market nationwide, it also caters to thousands of small manufacturing and repairing units of electrical equipments in the country. Thus, it has an equal share of the organized and unorganized market spread across the country. RRWL continues to develop value added products like corona resistant wires and triple insulated wires as per customer requirements keeping pace with developments across the world.

SHAREHOLDING PATTERN:-

             Promoters as on Sept’16 are holding 73% of the company’s shares. The company is having no pledged shares! The main promoter, RAM RATNA RESEARCH & HOLDINGS PRIVATE LTD.  holds 15.45% of the company’s shares. Highest holder among the public shareholders is the LATA SHYAM PARWANEY, holding 2.9% of the company’s shares.  DIIs holding stand at 0.02% (2DII holders)as of sept16.

            Another interesting info, Promoters of Ram Ratna Wires own 73% of the company. Another 10% is owned by anchor investors. So only 17% is owned by around 4000 shareholders.

Financials and future prospects:-

FINANCIALS:-

             The company this financial year posted an EPS of 4.39 vs 4.47 in FY 2014-15, thus posting negative growth for this year. The company is having a good financial trend reporting fab Q2, more than 250% rise in EPS YoY

             Company’s operating profit per share is Rs15.69 against 15.67. The OPM, CPM & NPM stands at 4.73%, 2.36%, 1.32% against 4.61%, 2.21% and 1.32%. The ROCE decreased to 15.04% against 17% while RONW decreased to12.94% vs 14.83%.

             Company though is debt-ridden, but having enough cash flow to pay interest on the debt. Company has been maintaining a healthy dividend payout.

             ABOUT RAW MATERIALS (expectations): RRWL will benefit from falling copper prices and weak USD as copper is the Company’s main raw material of which 32.74% of the total consumption is imported along with state-of-the-art machinery for quality production.

FUTURE PROSPECTS AND EXPECTATIONS:-

The modernization and expansion plan as envisaged by the  Company at its plants for increasing the production capacity, widening the product range and improving production processes, is a continuous one and is being taken from time to time as required.

SECTOR outlook:-

            The overall performance of the Industry has been far from satisfactory in the past two years. The demand has been sluggish with the Electrical Equipment Manufacturing Sector not having adequate business from Power and infrastructure projects. The world seems to be now recovering from the turmoil of past two years. Amongst the developing economies, India has emerged as among the most promising prospects for the future. The icing on the cake has been the recent Union Budget which is hugely focused on infrastructure development nationwide. Naturally, they look forward to being a significant contributor in this segment.

            The demand for winding wire is directly linked with the growth in power sector. The Union budget for the financial year 2016-2017 focus on accelerated growth within power sector with increased outlay of the tune of ` 79,884 crs, apart from 3,000 crs allocated to the nuclear power generation. This combined with programs like “Make in India” and “Skill India” will give a big boost to domestic production of Electrical & electronic equipment and hence greater demand for winding wires is expected.

            As per the projection by Union Power Ministry, by the year 2020, every home in the country will be electrified. This coupled with the success of UDAY (Ujwal DISCOM Assurance Yojana) scheme of the Energy & Power ministry to strengthen the working of State electricity boards to supply electricity to its consumers will increase per capita consumption of electricity in India. The Union Budget 2016-2017, have given prominence to Agriculture and Rural sector, apart from infrastructural development. All these factors will boost the demand for Electrical equipment for Industry and domestic consumption in the vast rural sector which in turn will result in huge demand for winding wires.

             On the export side, Indian Electrical equipment Industry is quite matured and competent as per world standards, having export markets in countries like, USA, Germany, UAE, Saudi Arabia, France, UK, Nigeria, Kenya and Brazil etc. This sector is backed by diversified, matured and strong manufacturing base either directly or through foreign collaboration with proven performance in rugged design of equipment to meet the stringent international Standards. All these factors will contribute to the demand for best quality winding wires. The very fact that, Salasar Copper (Unit-1) of this company is credited with maximum no. of International certifications, such as ISO 9001: 2008; ISO 14001:2004; ISO 50001: 2011; OHSAS 18001:2007 speaks of its quality, reliability and competitiveness which will definitely help demand for the company’s products.

Technical:-

 RAM RATNA is technically bullish. It has crossed its life-time resistance at 75-77 zones after creating near triple-top in that zone. Right now Ram ratna is trading at its lifetime high. The company is above all EMAs and SMAs thus showing its bullishness. The price is going above Bollinger bands, so it might create a base at 86-92zones before another up-move.

SWEET SPOTS:-

1)    Company has been maintaining a healthy dividend payout.

2)    The company’s operating cash flow is positive all the time, thus maintaining its stability and the ability to pay interest on its debt and also having huge cash reserves for further expansion.

3)    Increasing cash reserves on low equity; can issue bonus anytime.

4)    Company has plans for future expansion.

5)    No doubt in promoters’ integrity. The founder of the company himself has raised from the earth to sky, he will try his level best to push its way further.

6)    Modi Govt. Has vast Interest in infrastructure sector, where they have already focused their main attention on this sector in their last budget; further focus on this sector will be a boon for this company. This company already has a wide customer base.

7)    Since last 3 quarters the company has done a net profit of 4+crs, that too on the back of a sluggish year. There is quite good scope that annual EPS for the current FY could well double compare to last FY.

8)    Expecting good Q3 results.

9)    Expecting this union budget to be positive for the infrastructure sector thus increasing the company’s wire demand.

       10) Though the last year balance sheet indicates a debt of 100+ crores, long term                 debt here stands at only 12 - 15% of that. Rest all could be working capital. 

       11) Mcap to sales ratio is 0.29 thus giving ample of opportunity of appreciation.

Hot spots:-

             1)     In the winding wire business, the global demand and supply of copper and its                prices plays a vital role and could significantly affect the Company’s turnover.

             2)     Company has a low return on equity below 15% for last 3 years.

             3)     Highly fluctuating price of copper, which is the principle input to the winding                wire Industry, is a serious concern.

             4)     Delay in infra spending by the government.

             5)     Currency fluctuations could affect the results of operations.

             6)    Margins are low for the company.

             7)     The company couldn't capitalize on falling copper prices as the EBITDA                       margins are stable in the level of 4%-4.7%

             8)    The receivables are very high approx. 55% of the company’s total assets.

MY TAKE:-

               The company is expected to do well in coming years. The writer of this blog reco it at 76, has TGT1:250, TGT2: 470-500 in next 30-40months.

UPDATE 25th July 2018 (CMP 144):-
RAMRATNAWIRES met our 1st tgt in less than 18months. HOLD is my call!

Disc:- All the info are based on the writer's own research/gathered from public domains. The writer of this Blog is neither any advisor nor related to any brokerage houses!! The writer might be himself invested in the stock after his own research so the views might be biased. One must do their own research before investing. The writer of this blog won't be held responsible for any of your profit/loss in your investment/trading career!