VIRAT CRANE- A POTENTIAL MULTIBAGGER!

OVERVIEW: 

Virat Crane Industries Limited involved in manufacturing the dairy products and Famous CRANE masala products in India. The company offers its products under the brand name of CRANE. In addition, the company through its subsidiary, Durga Dairy Limited, produces and sells ghee. Virat Crane Industries Limited is based in Guntur, India.

VCIL listed in 1992 and is promoted by Subbarao, who started career as selling betel nut sachets and built 'CRANE' group of companies(Agriculture,Real Estate,Infrastructure,Finance and IT products)ore organization under 'CRANE'.The company manufacturing plant is located at Guntur.

PROMOTERS:-


Born on February 13, 1931, at a small village near Guntur(AndhraPradesh Capital), Grandhi dropped out of school in the sixth class. He started working with a beedi wholesaler, then set up his own shop before driven by his entrepreneurial quest. Now he owns the Virat Crane Industries listed company on BSE. 

 Who started his career with 100 rupees note as a beedi worker now created a CRANE empire worth more than 100 crores.

Promoters are very much ethical and investor friendly.He asked his son to work as a office boy in career starting unDer him to know the value of work.I had a lengthy chat with key management today they replied for all my questions patiently.

Can read more @below link
 www.deshvidesh.com/success2.htm151

PRODUCTS:-

The current facility can produce up to 2,400 tonnes of Ghee every year. The production facility is spread over XX of land along with 1,300 sq.ft. of attached cold storage.


 SHP:-

74.85% of shares are held by promoters... Out of this the main share-holder is V S L KANTHA RAO holding 71.4%. Promoters have pledged no shares. DIIs holding  0.11%.

SUBSIDIARIES:-

Virat Crane Agri Tech Ltd:a world class fruit processing facility at Berhampur, Orissa, for exclusive manufacture of premium fruit concentrates/fruit pulps of Mango, Papaya, Tomato and Guava in aesthetic tetra packs. A full-fledged 100% Export Oriented Unit with technical association M/S Sasib Foods, Italy in 800 acres collaboration with Orissa GOVT.

SALES AREA:-

Company's CRANE betel(fruit masala) commands 85% market share in United AndhraPradesh,60% in karnataka and 40% in tamilnadu.

POSITIVES:-

Company's DURGA brand is monopoly in andhrapradesh and telangana states and have presence in orissa,Bangalore and chennai. Company plans to expand it to further states.

  The company's subsidary Durga Dairy Products(DDL) has production capacity to manufacture 1500 tons of ghee per Anum.

 Company is regular dividend(5%) paying company for the last 4 years.

 Company products are recession proof because they are like FMCG products.

 Durga Dairy has entered into similar alliances with major retail players like Walmart,Reliance Retail, Trinetra, Gaint, Spencers, Foodworld, Subhiksha and Metro.

1.  Company has reduced debt.
2. Company is virtually debt free.
3. Stable Cash-flow. 

FINANCIALS:-

RATIOS-

Comparing 2014 and 2016 its Operating profit per share has drastically increased from 1.21 to 4.25 (2015=4.22)

Net operating profit per share is 29.8 vs 22.34(15=30.84)

Operating margin at 14.27& against 5.4%(15=13.89)

PBT margin at 13.68 against 4.91(15=13.35%)

GP margin at 13.87% against 4.94%(15=13.41%)

Cash profit margin at 9.5% against 4.94% (15=8.95%)

NP margin at 9.34% against 3.07%(15=8.49%)

ROCE at 29.93% against 10.17%1(15=31.22%)

Return on net worth is 19.45% against 6%(15=19.64%)

EPS @2.8 against 0.69(15=2.63%)

FINANCIALS-

Reserves were -0.19 in 2005, 0.00 in 2006 and 9crs in 2016, increasing every year.

Net worth multiplied 3 times in last 10 years.

Debt continuously decreased in last 3 years-(2014=1.30cr, 2015=0.30cr and 16=0.14cr).

This year might be a subdued year but with future prospects in their hand it might turn anytime.

EPS showed an increase (Q-o-Q).

The co. achieved highest profit ever of 5.72crs.

Co. transferred 28.60lacs to reserves.

Mkt capital increased by 225% in last 1 year(MAR-2015).

The co. is entering to new business from this financial year- into Curd and buttermilk... They invested 2.5cr pilot plant for production of curd and buttermilk currently they are sold locally.

Increased their promotional expenses by 53.%.

All the positive vibes factored in this sector and firm ensures that Virat crane is a pure buy at CMP 48 for a tgt of minimum 100... Tgt can be upgraded on the base of company's performance.



UPDATE 24th July, 2018(CMP-44):-
                    
one of the rare scrip with no movement since last 2 years. While the profit continues to increase. Share price shows no changes. A decent bet even now if one can muster patience.


Discl- 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. Please do your 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!