All figures in Rs Crs Income Statement for 6 months of 2014-15 Income Statement for whole year 2013-14
Total Income 130 240
Operating Expenditure 117 222
PAT 9 7
Figures have been taken from SKM`s 2014-15 Second quarter financial report.
Click to access 31102014113005PaperResult2ndQtr201415.pdf
Previous year`s PAT has already been breached. 2014-15 Sales can be expected to be 15% higher than previous year and PAT maybe higher by 200% (atleast). If PAT reached Rs 20 Crs, then current market cap of Rs 200 Crs is justified (P/E of 10x).
BoJ (Bank of Japan) stimulus shot sending markets higher (quantitative easing is finance`s answer to Steroids). So the madness is going to continue unabated.
http://www.reuters.com/article/2014/10/31/us-markets-global-idUSKBN0IK02D20141031
SKM gets a HOLD. The turnaround has begun. See no reason why the company can`t do better in the long run.
thepokaranmoneymanager 
Dear sir
excellent pick up and update on the prospectus to be HOLD strongly.
regards
Hi,
If the predicted PAT of Rs 20 Crs is met by year end, what is the justifiable share price.? What number do you expect the share price to be.? Can you please throw some light to it.?
Good day buddy.
SKM currently trades at Rs 200 Crs market cap currently (Rs 85/share). Rs 20 Crs PAT and a P/E of 10x implies that current market price of Rs 85 is justified. Hope this answers your question. Else you can always message me back
Hi, I plan to go long term on SKM. I expect that the company turns 500Cr market cap by 2016. I have a target set to 200. Is it a reasonable expectation or unrealistic ? Pls do advice.
Yes. Reasonable.
Sir can you elaborate the results of supreme petrochem ( sales have gone down but pat has increased and opm have also improved )
So lower crude oil prices can benefit the company in the next quarter and as crude is in a downtrend it should help the company ??
Forbes Company – Results aren’t so good but board approved to develop the land in Mumbai . Can it add value to the stock price .
Stock has lot of value in its subsidiaries but how much time will it take to unlock is the question ..
Not sure what Supreme Petrochem does. But if they are into refining or petrochemicals then YES. Lower crude prices will help Refiners and Petrochemical companies.
when is your next multibagger idea??
Hai sir
what is your views on kitex garments,can we enter at CMP 530/-?
best regards
No. It trades at a P/E of more than 40x. Looks very expensive to me.
Can you guide on Lawreshwar Polymers Ltd quoting. @18.95 . And Somi Conveyor Beltings Ltd. @27.15.
I would like to initiate Buy ,after hearing from you sir.
ThanQ .with regards.
Mahesh Vakharia
Lawreshwar Polymers looks interesting although their PAT margins are very low. It really depends on whether raw material cost will reduce. This is not a recommendation to buy. I need to do a lot of research before I can actually recommend buying it. But thank you for suggesting this company. I will look at it more deeply.
With due respect Sir, as the crude prices are going down , I was searching which companies can benefit the impact of falling crude price ,and got this Lawreshwar Polymers Ltd. Frankly speaking , I really do not understand the M.Cap , and how to get it. But simple thing which I know ,if company’S sales are more then MCap , there is some steam left. . Just this is what roughly I know . And Somi In the field of Conveyor Belting , as industries is taking uptrend .
With due Regards to you as always,
Mahesh Vakharia
Thank you Mahesh ji. I understand your reasoning. Will look into it further
THANK YOU very much Sir.
Regards .
What’s your view on Ramco Industries
Investments value is more than the market cap of the company !!
How do you say so? Market Cap is Rs 750 Crs and value of investments come to Rs 200 Crs. Please elaborate
http://www.screener.in/company/?q=532369
I go through screener whenever I like a stock ??
Still it has grown YoY .
Moneycontrol and Ramco`s Annual report suggest something else. Whenever you are looking at some numbers, please cross verify with company`s annual report. That is the most reliable source of information.
Whats your view on Manali Petrochemical and Tide Water Oil ??
Had invested in them at 9 and 8600 before elections and they rose 50% . I booked out after getting handsome returns in quick time .
Couldn’t enter the stock as it never came down and now they already doubled up !!
Still find them safe n steady bet if this bull market continues ??
Even now, from a cursory glance, they dont look very expensive. The numbers dont look bad at all.
Also, I guess Veedol is a pretty well known brand
Yes the look very reasonable but the stock can stay flat and test your patience and you see other stocks flying and doubling in no time – like skm egg , aimco pesticides , freshtrop fruits , avanti feeds , kitex garments etc ..
How can one find such fast movers . I mean one should get a proper entry point in such stocks and gradually grow your wealth
If you find that out then you will become India`s richest man!
How do these bloggers get such crazy stocks which multiply in no time ??
Aceinvestor.WordPress
Valuepick.blogspot
Dalal-street.in
Multibaggeryogi
What is their hit rate? If they have a high hit rate then I agree. But if they recommend hundreds of stocks then it is pointless. Conviction is the most important part of superior returns generation. You can give short recommendations of 1000 stocks but that does not serve the point. That is not conviction. That is diversification.
Hit Rate is around 90% and in this bull market they have gone crazy . People just hop on to the stock they recommend blindly and are making money without any change in numbers . They just talk about the future of the company and surprisingly the numbers turn out good .
Go through
Value-picks.blogspot.in
Aceinvestor.WordPress
http://economictimes.indiatimes.com/markets/stocks/news/several-small-caps-trading-at-eye-popping-valuations/articleshow/45092472.cms
Guess this answers your question
hello sir, appreciate your views on orbit exports
Company looks interesting but numbers look expensive. It currently can be a growth stock but not a value pick
Bad set of numbers from navneet n engineers India ..
Views for long term ??
Engineers India Ltd I will hold inspite of any bad news. Check the other comment for Navneet
Sir
I had bought IGSEC at 2200 and asked your opinion on the stock and you said it was a good stock to hold .
Today I booked out half of my holding at 3800 and will forget the rest .
Should I add the stock if it declines to 3200-3000 in future ??
I am holding some andhra sugars and Navneet education ( it came with a bad set of results today and last quarter was excellent )
Should I Hold navneet or book part of my profits . Do you think market will re-rate navneet in coming years ??
Are you sure that I told you about IGSEC? I dont seem to remember that. Navneet trades at 5 times to book value and more than 20 times to earnings. It doesnt look cheap at current valuations. If you have made a good profit with Navneet then you can exit
I thought I had asked you about igsec still is it a hold for long term ?? ..
Engineers India technically is at crucial levels .. Break of 230 would stock can take a good plunge toward 170-200 ..
If it holds then well and good ..
I made 30% and 2% dividend in navneet in last 5 months and exited today after reading comments on mmb about only stationery business doing good and e-school doesn’t have any impact on the numbers and nothing much from the government side ..
Sir, your view on shetron please. SALES around 200 cr. Market cap 28 cr. Debt 68 crore.low equity. Good priduct prifile. Interesting clients holding for long time. Company sales are increasing. Turned into profit recent qtrs. Kindly study and reply.
http://valuestocs.blogspot.com/2014/10/buy-shetron-ltd.html
I agree that it is attractive. The only problem is that I find the packaging industry is not a great place to be in. Capital intensive, raw material intensive etc. You could look at Hindustan Tin works. India`s largest tin can manufacturer trading at 11 times earnings and is below book value. Dont buy a stock just because it trades at Rs 20. Retail Investors have the tendancy to think that a low CMP implies cheap stock and room for appreciation. While there maybe some merit in this, I still feel that there are many better high quality companies that are trading at a substantial discount to intrinsic value.
Yes you can buy Hindustan Tin Works around 80-85 for long term and it already recommended by ValuePick at 66 levels !!
Hi
The stocks which I am holding have come out with bad set of results
Navneet
Engineers
ADF foods
Supreme Petro
Clariant Chemicals
Vardhaman Textiles
I am making losses in ADF and Clariant – Why is the markets punishing the stocks on one quarter ? Should I book losses in these counters ??
Alstom India and Nesco came with good results and the stocks are not even performing . they are still trading at my buying price .
No. Dont be worried about quarter results. If you are confident about the company`s longer term prospects then HOLD.
Thank you for giving confidence Sir .
Are you tracking Cairn ??? Many analyst are getting bullish at current price and I think if the stock was so tempting at current price it would have shot up already . is it a good buy at 250-220 levels .
And please let me know about dredging. Corp and ITD cementation .. I would like to SIP in dredging engineers and ITD
Thank you for giving confidence Sir .
Are you tracking Cairn ??? Many analyst are getting bullish at current price and I think if the stock was so tempting at current price it would have shot up already . is it a good buy at 250-220 levels .
And please let me know about dredging. Corp and ITD cementation .. I would like to SIP in dredging engineers and ITD Cementation
Not really interested in Cairn India and ITD Cementation. Will get back on Dredging
HI Sir
going through your blog , i understood 1 thing that you are very selective about your suggestion. You give very few tips , but most of them are bang on target.
Missed out SKM , holding llyod @ 70… now eagerly waiting for your next… 🙂
when can i expect your next multibagger ??? and it would be great if you suggest us something in lower range (like SKM) so that it can be bought in numbers … Thanks
Saurav
Thank you Saurav. I agree with everything you said except for the last sentence. With respect to penny stocks, 99% of them have a reason for such a low value. Usually due to a dead business, poor corporate governance etc. Only 1% of penny stocks have the chance of moving up tremendously. Finding that 1% is even harder for the stock picker. Will try my best to give honest and fair opinions of stock valuations. Thank You
Can you review the results of ACE and West Coast Paper Mills Ltd .. Bought them this week for trading purpose and was going through their results and I found them good enough . I can hold on to them as medium term picks !
Regards
West Coast has too much debt and very low PAT margins although Q1 results of this year have already beaten whole of last year`s PAT. WHat ACE? There is a whole bunch of companies with name starting in ACE
Action construction Equipment
Even if they reach a PAT of Rs 40 Crs (10 times their previous year`s), they still trade at 10 times earnings. Also remember that this sector is extremely competitive with many MNC`s.
Sir good work by sharing ur knowledge…….can u review AMD ind. @ 25 today it came out with bad result.
but looking attractive at current price ,having diversified businesses
Numbers look good since it trades at a substantial discount to book. The only issue is with the industry. Packaging industry does not really have great margins, brand value etc etc. With lower crude prices, this company`s earnings may surely do better. But the industry is the problem
sir why the time of posting comment is not depicting correctly…….:)
i posted above comments at around 1.30 pm…but now showing 7.56am
I believe that wordpress uses greenwich time. So I am guessing that 5.5 hrs difference is due to the Indian standard time being GMT + 5.5
Thank You !!
ur take on AMD ind @25
Please see above comment Pratik
ok got it ………….ur concern is right about packaging ind..but i belive due fall in cude prices it will benefit till 1-2 quarters….Impt point is it also deversified into textiles ..(u cn find info at co. website…& also into real estate.
taking above factors….ur view
i had not studied it deeply but looking cheaper one
Oh. I am sorry for discouraging you but textiles is also a highly capital intensive, low ROCE business. Warren Buffet, has said that his biggest mistake was to invest in textiles. If it is very cheap then it is OK else you may have to think twice.
Don’t you think textiles and chemicals space are to be watch out for the next 2-3 years with rupee appreciating and stop of cheap imports from China !!
Not sure about chemicals. But textile is fine only if the stock is substantially undervalued.
hi. can I buy v2 retail for longterm !
Numbers definitely look cheap. But the company has been making losses continuously for 5 years. Is a turnaround happening?
turned out to be a great pick with unique product