Alufluoride Limited - Beneficiary of commodity cycle runup

Price: Rs. 110-140
CMP: Rs. 138.25
P/E: 16.40 ~ Expected P/E: 29.07
Book Value: Rs. 32.73
Price/Book: 4.22

Target: No specific target as is a mega multibagger, hold for 5-10 years, I'll review these stocks every March.

In my watchlist since 42 days.

Alufluoride Ltd (AL) is producer of high quality Aluminium Fluoride (ALF3) chemical with its plant located at Vizag , Andhrapradesh.  Aluminium Fluoride is added as a flux in the process of primary Aluminium Production. This is of critical importance as it lowers electricity consumption during the smelting process. Consequently, primary Aluminium Smelters are the biggest users of ALF3. AL is the only Company in Andhra Pradesh producing high purity Aluminium Fluoride having technology association with Alusuisse, Switzerland. This technology facilitates conversion of Fluorine effluents from Phosphatic Fertilizer Complex into Hydrofluosilicic Acid and then to Aluminium Fluoride.

Growth Triggers:
1. Till 2 years ago, company faced challenges in acquiring uninterrupted raw material supply of Hydrofluosilicic Acid. Though the company is having long term supply contract with  Coromandel Fertilizers Ltd (CFL), which is not fulfilled. Last year onwards AL is purchasing the same from Paradeep fertilizers and stability in operations.

2. Aiming for further growth, management allotting 8 lakh shares to promoters for capex and 2MW solar plant setup in the current location. This preferential allotment will increase the mgmt stake from current 53% to 65%.

3. Main application of ALF3 i.e Aluminium prices are improving on LME exchange. Recent pollute curbs implemented by China is also aiding the price jump of aluminium.

Hidden opportunity (aluminium fluoride as a new cathode material for lithium-ion batteries, this will take another 10 years for development):
Electric Vehicles (EVs) have caught the fancy of automakers and policy makers alike in India and around the world. With the Government’s push to make India a 100% EV nation by the year 2030, automotive companies are carefully treading into the EV space to expand their portfolio. This push for EVs will create a significant change in India’s securing lithium supplies, a key raw material for making batteries, becoming as important as buying oil and gas fields overseas.

With the proliferation of EVs, smart phones to laptops and storage of green energy production, lithium-ion batteries are gradually witnessing a rapid growth. Innovative battery designs, chemistries and cell formats are being introduced for power performances in order to meet the advanced needs of products today. These batteries, often called LiB, are rechargeable and with higher energy capacity thus allowing on-the-go consumers to keep using devices without replacing the batteries or frequently charging them.

Given the ambitious plan for an all-EV fleet powered by lithium-ion batteries by 2030, As lithium ion batteries are charting new frontiers like electric cars, designers are constantly working towards resolving issues that come with breakthrough innovation, mostly that of cell balancing and safety. For instance, one kWh of electricity is enough to go about 6km, so a 200km “full tank” range requires about 35 kWh of battery. Globally, prices for lithium ion batteries are about $250/kWh, roughly working to about Rs 5.7 lakh in battery costs alone, excluding import duties, considering batteries are imported.

To improve the lithium-ion batteries charging performance, AlF3 has been widely used to modify  the surface of cathode materials and graphite via a low-temperature (400◦C) reaction approach. The improved electrochemical performance was tentatively attributed to the “buffer” layer provided by the AlF3 coating, which reduced the activity of the extracted oxygen and suppressed the electrolyte decomposition.

Financials:

1. Growing at good 20% growth in top line and 70% growth in bottom line.

2. Debt free status and capacity expansion completion indicating strong financial status.

3. Positive cash flow of 6cr for last FY coupled with improved financial ratios.

4. Company holds reserves of 15cr including 12cr Mutual fund investments +3cr cash on hand against market cap of 96cr.

Conclusion:

Company is positioned well on fundamentals and attractively available under 96cr market capitalization with stock price trading @135rs, estimated conservative EPS of 8rs and PE of 16 with debt free status.

Disclosure: I hold investment in Alufluoride Limited.

Source: http://www.smallcap-valuefind.com/2018/01/alufluoride-limited-beneficiary-of.html?m=1

Apollo Micro Systems IPO Review

Apollo Micro Systems IPO Review:
Apply for Listing Gain
Expected Market Premium: Rs. 135-140
Price Band: Rs. 270 to 275 Per Share
Expected Listing Price: Rs. 410 to 415 Per Share

Apollo Micro Systems IPO Dates & Price Band: (Approx)
IPO Open: 10-January-2018
IPO Close: 12-January-2018
IPO Size: Approx Rs. 156 Crore (Approx)
Face Value: Rs. 10 Per Equity Share
Price Band: Rs. 270 to 275 Per Share
Listing on: BSE & NSE
Retail Portion: 35%
Retail Discount: Rs.12
Equity: - Shares

Apollo Micro Systems IPO Market Lot:
Shares: Apply for 50 Shares (Minimum Lot Size)
Amount: Rs.13,150 (For Retailer, Employee)
Amount: Rs.13,750 (For QIB, NII)

Apollo Micro Systems IPO Allotment & Listing:
Basis of Allotment: 17-January-2018
Refunds: 18-January-2018
Credit to demat accounts: 19-January-2018
Listing: 22-January-2018

Apollo Micro Systems Financial:
The Apollo Microsystems has good growth in last five years. As the PAT in 2017 increased to 86% with 18.6 crore compared to 10 crore in 2016. The Revenues increased 32% in 2017 compared to 2016 while PAT goes down around 22% in 2017 compared to 2016. Still a good bet is on.

Apollo Microsystems is a company from Hyderabad. They are doing business of designing, development and manufacturing of electronics and electronics mechanical systems. They are specialize in custome built hardare and software solutions for aerospace, defence, space, automative and railways. The ipo market boom in 2017 and its going to have a same way in the coming year 2018 as well. As the company financial it looks good and we can expect a early listing gain for the company. The ipo is around 156 crore so the subscription numbers might go on a higher side. Another small size ipo with big gain is coming up.

Company Promoters:
Karunakar Reddy

Apollo Micro Systems IPO Registrar:
Bigshare Services Private Limited 
E2, Ansa Industrial Estate, Sakivihar Road,
Sakinaka, Andheri (E)
Mumbai – 400 072
Phone: +91 22 4043 0200 
Fax: +91 22 2847 5201
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com

Apollo Micro Systems IPO Lead Managers:
Aryaman Financial Services

Company Address:
Apollo Microsystems Limited 
Plot No 128/A, Road No. 12, BEL Road
IDA Mallapur, Uppal Mandal
Hyderabad - 500076
Phone: +91 40 2716 700 
Fax: +91 40 2715 0820 
Email: cs@apollo-micro.com
Website: www.apollo-micro.com

Conart Engineers

Price: Rs 48.25
P/E: 17.55
Industry P/E: 44.54 ~ Expected Price: Rs 120
Period: 1-2 years
Book Value: Rs 53.19
Price/Book: 0.91

Technicals: Forming higher top higher bottom... moving in a range catch as soon as possible... has just reversed. Once breaks the range on upside can give a big spike... will take its time though.

Fundamentals:
1. Company has reduced debt.
2. Company is virtually debt free.
3. Stock is trading at 0.88 times its book value.
4. With an equity capital of Rs.3 crore and reserves of Rs.10.54 crore, its share book value works out to Rs.48.85.
5. Debt free, Cash Rich Infrastructure Company available at such a valuation is a steal.

About Company:
Incorporated in 1973 in Mumbai, Conart Engineers Ltd (formerly known as Conart Builders Pvt Ltd) provides general contracting and project management services for industrial, commercial and residential construction projects. It offersgeneral contracting services such as cost monitoring and control, schedule development and control, subcontractor management, field engineering and site management, safety assurance, project accounting, change management, shop drawings and material submittal review and quality control. It also undertakes design-build and turnkey projects. In addition, it provides construction project management services (i.e. material planning, concept design, rough estimate, constructability review and construction bidding), cost estimating, CPM scheduling, change order evaluation, project cost controls, safety, quality management/field inspections, technology services and constructability review services. It serves the heavy manufacturing, chemical and petrochemicals, pharmaceuticals, residential and commercial, textiles, research and development, heavy engineering, electronics and computer markets. 
Conart has been providing its clients with at-risk general contracting services for more than Four decades. Our clients rely on us because we are responsive, provide outstanding service.

Their customer list includes:
ABB
Advani Oerlikon Ltd.
Alstom Projects Ltd.
Voltas Ltd
Asian Paints
General Motors
Gujarat Alkalies & Chemicals Limited
IPCL
Laffans Petrochemicals Ltd.
Lupin Agricare Ltd.
Parekh Platinum Ltd.
Paushak Ltd (Darshak Ltd)
Sabero Organics
United Phosphorus
Glaxo
JB Chemicals
Pune Municipal Transport
Gujarat Industries Power
Raymond Woollen Mills Ltd.
Cadila Healthcare Ltd.
Apollo Tyres Ltd.
Bombardier Transportation India Ltd.

Nalanda International School was constructed by them.

Conart Engineers is working very intensively in Infrastructure Space, it is the space where India will invest as much as Rs 3,96,135 crore in creating and upgrading infrastructure in this financial year, and this will increase year on year as India is a Developing Country and will remain so for many years to come. Infrastructure will play a very vital role in India's Growth Story and Conart has the potential to make the most of this massive opportunity.

Industry Growing Opportunities:
Minister of Road Transport & Highways and Shipping, announced the target of Rs.25 tn ($370.6 bn) for investment in infrastructure over the next three years including Rs.8 tn ($118.6 bn) for developing 27 industrial clusters and an additional Rs.5 tn ($74.11 bn) for road, railway and port connectivity projects. India’s 2016-17 Union Budget has budgeted nearly Rs.2.2 lakh crore ($32 bn) for the infrastructure sector, which is expected to boost India’s GDP to 9%. The total length of National Highways is expected to cross ~2,00,000 km in the next 5 years thereby offering significant opportunities in the State/National Highway segment. States like Bihar, Gujarat, Madhya Pradesh, Maharashtra, Karnataka, Rajasthan, Uttar Pradesh and West Bengal have planned several projects both on EPC and PPP basis. The Central and State Governments have granted infrastructure status to affordable housing for urban and rural housing projects in the current Budget. The Central Government aims to complete 1 crore houses by 2019 under various schemes.

They are into civil construction and seem to have recently gone into Construction Project Management. This seems to be an area with better profit margins.

Compuage Info

Price: Rs 60-62
P/E: 20.25
Industry P/E: 44.15 ~ Target: Rs 98

Period: 6-12 months
Book Value: Rs 19.58
Price/Book: 3.14

Technically: Long term breakout around the counter for Investors

Fundamentally:
1.Promoter's Stake has increased.
2.Company has steady financial performance.
3.CIL has a broad based product mix across 3 main Group Categories –
CIL's product mix is spread across three product category groups which includes the IT Product Vertical, Enterprise Product Vertical and the Mobility Product Vertical.
4.Top 3 vendors for CIL include HP, Cisco and Samsung.
During FY17 CIL has added 14 new principal relationships to its product portfolio.
5.CIL has also made huge inroads PAN India through its Geographical Reach which is a key variable in this industry
6.CIL has outlined a 4 point strategy to propel and sustain its growth engine in future also –
This includes – Service Orientation with Vendors, Cash Flow Management, Regular investments in Technology
and Strong Relationship Management with its Reseller network.
7. Lots of other factors not possible to list down.

Clients:

About Company:
Compuage Infocom Limited is an information technology distribution company that distributes computer peripherals, Telecom and Power Products. CIL also provides products support services for Information Technology products and Installation and annual maintenance services for these products. CIL was founded in 1987 and has its headquarters in Mumbai. The company
also has subsidiaries in Singapore. Over the last 30 years CIL has developed a
strong network of over 10000 channel partners across 800 cities & is currently
associoated with 32 marquee brands with 42 warehouses & 61 service centres
across pan India.

Gujarat Heavy Chemicals Ltd

Price: Rs 324.40
P/E: 8.01
Industry P/E: 19.87 ~ Expected Price: Rs 600
Book Value: Rs 135.31
Price/Book: 2.40

Technically: Multi year breakout

Fundamentally:

1. Company has good consistent profit growth of 28.26% over 5 years.

2. Company has a good return on equity (ROE) track record: 3 Years ROE 29.52%.

About:

GHCL (Gujarat Heavy Chemicals Ltd) is a multibagger stock in the making. It is among India’s three largest soda ash manufacturers. It reports Ebitda (earnings before interest, taxes, depreciation and amortisation) margins ranging from 28 per cent to 33 per cent.

GHCL’s Ebitda margins are higher than that of its closest rival Tata Chemicals for 2014-15.

Moat in soda ash business

GHCL has the big advantage that the business has a huge moat. There is a large amount of capital expenditure necessary to set up a soda ash plant. An investment of Rs 2,500 crore is required to set up a soda ash plant of 500,000 tpa.

Soda ash prices have been on an uptrend in the past few years. This has enabled all soda ash manufacturers to report high profits.

Textiles business

GHCL has the additional advantage of having diversified into the business of home textiles. It has integrated yarn spinning into the manufacture of home textiles. The textile division is also generating huge profits today for GHCL.

GHCL has also been able to increase its capacity utilisation in the textiles division from 70 per cent in 2013-14 to 85 per cent in 2015-16. GHCL has a number of marquee clients like Target, Bed Bath & Beyond, Revman and Wal-Mart (Mexico).

Capacity expansion

GHCL is investing about Rs 375 crore to increase the installed capacity of the soda ash plant. The expansion will be funded through internal accruals.

Debt reduction

It is also stated by GHCL that it intends to reduce the debt burden from Rs 1,297 crore as of 31st December 2015 to Rs 1,100 crore. The reduction in debt will mean that the Company enjoys higher profits as the interest savings will be massive.

Strong cash flows

GHCL has utilized cash flows for repaying overseas debt. In the last two years, GHCL has embarked on a capacity expansion plan of the soda ash segment, textiles and has also installed wind turbine systems. The major focus from FY18 will be debt reduction and paying investors dividend or shares buyback.

Dividend distribution policy

In FY16, GHCL declared dividend of Rs 420 mn at 16.4% gross payout. As per the dividend distribution policy, there will be a 15%-20% gross payout of standalone profits. Further, the company has also introduced ESOPs to reward employees. The company has appointed S R Batliboi (E & Y) as its statutory auditors. These steps will create value for shareholders in the long run.

Valuations are compelling

GHCL’s revenue will grow 6% while the EBITDA will grow 10%/ CAGR during FY16-18E. The company will focus on significant debt reduction from FY18E. The valuations are attractive because the stock is trading at 4.4x FY18E EPS of Rs 38, EV/EBIDTA of 3.2x and P/BV of 1.1x. The Company has significant re-rating potential given its strong earnings growth of 21%, RoCE / RoE of 26%/28% and strengthening balance sheet with D/E of 0.6x (FY18E).

Monthly Multibaggers

Here are our Top Stock Picks which have the potential to do well in January 2018.

1. Crest Ventures Ltd. Stop Loss: 245.00

2. Prakash Industries Ltd. Stop Loss: 165.00

3. Ajmera Realty & Infra India Ltd. Stop Loss: 290.00

Buy ALL of the above stocks today at current market price and sell them on 25 January 2018. 

Don’t buy just 1 or 2 out of the 3 stocks, buy all of them for a balance. Follow the stop losses mentioned above.

Credit: Amit Goenka
Source: https://multibaggerstocks.co.in/monthly-multibagger-stocks/

What is Stock Analysis?!

Did put in lot of efforts please do appreciate and share the link with as many as possible... let's educate all our investor friends out there
& do put a positive comment "YOUR APPRECIATION IS MY MOTIVATION"

There is no one way to identify good stocks!
1. There is no easy way to find a good stock.

2. One has to analyse multiple factors to find a good stock, more the no. of factors satisfied better the stock is. Although presences of large no. of factors doesn't guarantee success.

3. Patience to HOLD the stock for 5-10 years is a MUST. There is no standard time.

Source : http://sharemultibaggerstocks.blogspot.in/?m=1

4. Just because stock is cheap, doesn't mean it's a multi-multibagger.

5. One has to accept failure if idea doesn't work & move on to next idea.

6. Never put all your money on 1 idea , Always have 5-10 shares in ur portfolio. Don’t have too many stocks in your portfolio too.

7. Start small, do not waste your hard earned money. It's a long term process. Ability & experience in analysing stocks is a must.

8. High risk appetite, mental flexibility, open mindedness & ability to deal with corrections with patience are important characteristics as an investor.

Source : http://sharemultibaggerstocks.blogspot.in/?m=1

Factors to be seen in a good stock.
1. Promoters: Good investor friendly & ethical promoters is a must, ex- Godrej group.

2. Debt levels: The debt-equity ratio of the company must be less than 1 or must be reasonable, ex- Godrej Consumer.

3. Unique Business Model (Economic Moat): Ex- Delta Corp runs a Casino in Goa, a monopoly in India.

4. Business opportunity, scalability & sustainability: Ex: Maruti, for years it's business has scaled & sustained in a good way.

5. Great Brand & Brand Recall: Ex- Manpasand Beverages has a brand named "Mango Sip" with it which is performing wonderfully, now it has come with a brand named "coco sip" which also may outperform.

6. Nature of business: Cyclical or non - cyclical. Ex- Tata steel is a cyclical business but outperforms it's peers.

Source : http://sharemultibaggerstocks.blogspot.in/?m=1

7. Past performance: It's tough to estimate future performance of a company but one can easily analyse past performance as data are available with a click of the hand. Ex- Solar Industries.

8. Good Quaterly Performance: High quarter on quarter growth is a big requisite in a good stock. Ex- Emaami.

9. EPS & PE Ratio: High EPS & low PE Ratio in comparison to Industry is a must in a value pick. Ex- Talwalkar.

10. RoE & RoCE: High RoE & RoCE is very important to stock performance. Ex- Cera Sanitaryware.

11. Capex Outlay: High Capex doesn't mean the company will always do well, with change in Capex the capacity utilisation is also necessary. Ex: Linde, where cause of increase in capacity utilization now, the stock will perform well in near future.

12. Market Cap & size of addressable market: Do remember that all big companies like Google, Facebook, Apple started very small with then became huge.

Source : http://sharemultibaggerstocks.blogspot.in/?m=1

13. Shareholding Pattern: Free float should be high so that stock is a bit volatile, being that said the promoter's stake also should not be negligible(tells us about their confidence in own business).

14. High Gross Margins: Gross profits to turnover ratios must be high & consistent in growth.

15. High Asset Turnover- This is a must so that company performs well.

16. Structural changes in management: Sometimes big structural changes in mgt makes a stock a potential multibagger because of the high potential of the new management & sometimes because it leads to value unlocking too.

17. Low price to book value: This leads to huge value unlocking with is recently being seen in Uflex.

Source : http://sharemultibaggerstocks.blogspot.in/?m=1

18. Stock price in relation to net current asset value: Ex- Pilani Investments, if stock prices are low in relation to net current assets will wonderful point to be noticed for a multibagger share.

19. Phase of its life cycle journey: Whether the stock is in sunrise, growth, maturity or sunset stage is really important to a company. Always select a stock in sunrise or early growth stage.

20. Exponential growth: The big point of a multibagger stock is that it grows exponentially, prices grow from 2, 4, 8, 16, 32, 64, 128, 256..... the thing is these stock are not visible to investors till the prices cross 64 or 128.

21. Disruption Technologies: A movement of the business from manual to digital is a huge + point..... though the prises may decrease in short term, will have a humongous effect on volume in longer term.

One has to read company’s past 5 annual reports to get a better understanding of companies vision, past performance & future plans.

Source : http://sharemultibaggerstocks.blogspot.in/?m=1

HB Stockholdings Ltd

Price: Rs. 40.45
Target: Rs. 80 : 120 : 150
Period: 1-2 years
P/E: 6.78
Industry P/E: 44.31
Book Value: Rs. 60.27
Price/Book: 0.67

Fundamental Reasons:
1. Company is virtually debt free.
2. Stock is trading at 0.67 times its book value.
3. Market value of Investments Rs. 261.93Cr. is more than the Market Cap Rs. 96.23Cr.

Technical Reasons: Rounding Bottom formation.

Long term reversal signalling shift from a downtrend to an uptrend. The formation of the pattern comes from a downward price movement to a low (point A to B), followed by a rise from the low back to the start of downward price movement(point B to C) - forming what looks like a rounded bottom.
The pattern is preceded by a downtrend but will sometimes be preceded by a sideways price movement that formed after a downward trend. The start of the rounding bottom (it's left side) is usually caused by a peak in the downward trend followed by a long price descent to a new long-term low.
VOLUME is one of the most important confirming measure for this pattern, here volume is high at initial peak (or start of the pattern) and weakened as the price movement headed towards the low. As the price moved from the low to the price levels set by the initial peak, volume were rising.

About Company:
HB Stockholdings Ltd. is an Investment company belonging to the Delhi based HB Group & has huge value in investments in various quoted equities.
The single largest investment of the company is 30.37 Lakh shares of Jaiprakash Associates. The shares were acquired by the company a few years back at an average price of less than Rs.40 per share.
Besides its investments in Jaiprakash Associates, the company has investments in many other listed companies – these include DCM Shriram Industries, Chemplast Sanmar, Greaves Cotton. The total number of quoted equities comprise over 150 stocks, whose value at the current price is roughly Rs.250 crores. Besides, the company has investments of around Rs.13 crores in unquoted equities. This includes investment in Credit Capital Asset Management Co. Ltd. which manages Taurus Mutual Fund.

Risks & Concerns:
Any effort on the part of management to dilute the value of the minority shareholder is the major risk we see with the investment in HB Stockholding.

Shreyans Industries Ltd: SHREYANIND

Price: Rs. 210.95
Source: https://sharemultibaggerstocks.blogspot.in/?m=1
Target: 20-25% upside in 1-2 months (Rs. 255)
P/E: 10.65
Industry P/E: 14.13
Price/Book: 2.40

Fundamental Reasons:-

1. Company has reduced debt.

2. Company has good consistent profit growth of 65.38% over 5 years.

Technical Reasons:-

Shreyans Ind has given a recent break out, ie. prises have risen above previous highs made as on 10 may 2017 with huge surges in volume which is a big positive for the company:-

About Shreyans Ind:

Shreyans is one of the leading industrial groups of North India promoted by the well known OSWAL family of Ludhiana. Shreyans is a multi unit group with interests in Paper and Textiles.

Shreyans Paper Products: In the range of 44 GSM to 200 GSM (High Brightness Paper, Cream Wove, Coloured Paper, Duplicating Paper, Surfaced Sized Printing Paper, Azure Laid Paper, Maplitho Paper, Stamp Paper, Inland Letter Paper, Postal Envelope Paper, Offset Paper, Cover Paper, Super Calendared Paper, Rail Ticket Paper, Super Printing Paper)

Shree Rishabh Paper Products: In the range of 44 GSM to 200 GSM (Gold High Brightness Paper, Cream Wove, Coloured Paper, Duplicating Paper, Surfaced Sized Printing Paper, Azure Laid Paper, Maplitho Paper, Stamp Paper, Inland Letter Paper, Postal Envelope Paper, Offset Paper, Cover Paper, Super Calendared Paper, Rail Ticket Paper, Super Printing Paper)

Balasore Alloys

Balasore Alloys
A GOOD ALLOY FOR YOUR PORTFOLIO

Why Balasore Alloys?
1. Government thrust on infrastructure/
National Steel Policy
2. Quality product mix
3. Improving margins

Source: https://sharemultibaggerstocks.blogspot.in/?m=1

For all the technical analysts out there, Balasore Alloys has given a recent 12 year break out, ie. prises have risen above previous highs made in 2008 with huge surges in volume which is a big positive for the company:-

Price: Rs 84.20

Investment Perspective: 1 year

Upside: 40-50% expected

Source: https://sharemultibaggerstocks.blogspot.in/?m=1

Target: Rs. 126

About Company:
Balasore Alloys Limited is engaged in the manufacture and mining of ferro alloys. The company is also engaged in manufacturing and selling of ferro chrome of various grades. Its products include high carbon ferro chrome (FeCr60) and low silicon ferro chrome (FeCr65). It focuses on the production of products, such as low and medium-silicon, low phosphorous, medium-carbon and high-chromium. BAL is India’s second largest pure play integrated ferro chrome (FeCr) producer and is one of the few ferro alloys manufacturing companies in the country having captive mines.

Financials :- On the financial front, Ballasore Alloys posted a whopping 82.81 per cent hike in its net sales to `308.44 crore for the first quarter of FY2018 as compared to `168.72 crore in the same quarter of the previous fiscal. The company’s PBIDT grew by 173.54 per cent to `49.63 crore in the first quarter of FY18, as against `18.14 crore in the same quarter of the previous year.
The company’s net profit grew by 374.25 per cent to `24 crore in Q1FY18, as compared with `5.06 crore in the same quarter of the previous
financial year.
On the annual front, the company posted a 20.75 per cent hike in its net sales to `1,036.90 crore in FY2017, as against `837.97 crore in the previous financial year. The company’s PBIDT witnessed an increase of 129.46 percent to `203.67 crore in FY2017, as compared to `88.76 crore during the previous financial year. The company’s net profit grew by 379 per cent to `89.53 crore in FY2017 as compared to `18.69 crore in the fiscal year
The key risk for the company's profitability remains slowdown in the Chinese economy. The stock is currently trading at 6.76 P/E, which is reasonable.

Sharp increase in ferrous chrome and
chrome prices :-
The prices for ferro chrome have increased by ~100 per cent, while chrome prices are up by ~300 per cent since February 2016. The benefits of price rise will be seen in the coming quarters as well. The prices have risen during the previous year; however, the most important question is whether or not the prices will remain firm in the coming quarters. In all likelihood, the prices of ferro chrome are expected to remain high owing to huge consolidation among producers.

Source: https://sharemultibaggerstocks.blogspot.in/?m=1

Stainless steel:-
When it comes to ferro chrome, the production growth and price of stainless steel is a key driver of demand, as it accounts for over 85 per cent of global ferro chrome consumption. The ferro chrome industry is largely dependent upon the performance of stainless steel sector. India is the second largest stainless-steel producer in the world after China.

Final View :- On the expectation that the demand for stainless steel will remain intact and the prices for ferrous chrome will be steady, one can buy Balasore Alloys with a 1 year investment horizon perspective.

Yash Papers

This is an investment idea so it's a buy and hold stock (no stoploss or target), these investment ideas will be reviewed every March. This ideas may give you a multi-multibagger return in a long run.

CMP: Rs 41.69

Mkt Cap: Rs 184.31Crs

EPS: Rs 3.17

Book Value: Rs 16.38

Price/Book: 3.19

P/E: 16.5

Industry P/E: 13.37

Source: https://sharemultibaggerstocks.blogspot.in/?m=1

Why Yash Papers: It makes recyclable papers made with use of bagasse-based biomass (considered as waste), putting that into application they have created a brand called chuk (making paper plates, paper cups, paper mugs, etc) substitutions for cutlery(used for serving food items). The quality it has, the brand they are making & the efforts they are putting in it is a big positive. Chuk as a brand has a Hugh market. Plus adding to the positives is the financial performances shown by it in past quaters.

Source: https://sharemultibaggerstocks.blogspot.in/?m=1

Negatives:
High interest cost, opting out for CDR package will reduce interest rates, similarly as the plant is running with full capacity may not face any liquidity issues which it faced earlier.

About Company:
Yash Papers, located in Faizabad, India, is synonymous with machine-glazed varieties of paper. Their brand revolves around manufacturing the best wrapping grades of papers in India. They make MG wrapping papers in both brown and white varieties.

Established in 1981 by entrepreneur KK Jhunjhunwala, Yash Papers started by producing low grammage kraft grades of paper. Beginning with just one paper making machine, they successfully doubled capacity on that machine, then added a second machine in 1991 to more than triple their paper-making capacity. This level of growth within ten years helped them quickly establish dominance over the low grammage kraft market.

Product Details:
Yash Paper mainly deals in Kraft paper, Poster paper, Egg trays and disposable tableware products. The difference between Kraft and poster lies in the level of bleaching the product. For understanding sake, bleaching is the process which adds value to the product by way of quality and appearance. So can we conclude it as a simple commodity kind of business , doing so may be immature with out reading further.

The company products kraft paper, bags, pulp products is a value added products used across Quick Service Restaurant (QSR), FMCG, personal care, beverages and pharmaceutical sectors.

The company operates in sustainable business model,  what is the meaning of Sustainable? Sustainable means coming to an end after a phase. Just with little more digging, if our previous generations exists on earth even now, think of difficulties faced in our survival on this limited space. For me sustainable is all about regeneration capabilities. Yash management adapted same theme into business. We will evaluate the business model along with financial improvements happened in the past one year.

Yash Business model :
Raw Material Advantage : On the raw material front plant located in a strategic location of UP, where sugar cane cultivation is very high and availability will not be a issue. In fact  Yash constructed go-down to preserve wet based raw material to avoid any cyclical and quality issues. 

Self Reliance: Own power plants of 8.5MW  run by Agri products to support all the plants requirements.

Process Innovation: Sludgy convertion to Egg tray units, extraction of Silica from Rice husk are few examples of the process innovation.

Product Reach-ability: Regular products catering to esteemed clients such as KFC, MCD, LIC and Tata groups. Where as newly launched products are going to reach wide user base with good margins to players like Food Panda, Pizza Hut etc...

Operational Observations:
Basically Yash Papers Limited (YPL) comprises following 5 units – Unit-1, Unit-2, Unit-3, Egg Tray Unit and Tableware Unit.

Capacity of Unit-1 is 20 TPD, Unit-2 is 30 TPD and Unit-3 is 70TPD, which is 39100 MTs per year (considering plant usage linking between pulp and paper, understand it is not 365*120 = 43,800 MT).Production of paper 35,794 MT (Kraft Paper 18,446 MT and Poster Paper 17348 MT) and saleable pulp of 5,088 MT during FY 2017, translated to 91% capacity utilization which is exactly similar to last year.The Company exported 5,335 MT Kraft and Poster Paper in 2017 Vs 6,693 MT in FY 2016. Though exports are reduced, sales were not reduced. we can see the first sign of domestic demandimproving Q4 last quarter on domestic front.In the Q1 quarter sales increased only by 0.7cr yet operating margins expanded from 3.6% to 9.6%. Kraft paper prices are increased by 23% in this quarter, second indication of domestic demand growth.During current quarter Q2 , August month 3376 MT produced from Unit 1,2 & 3 translated to fully 100% utilization, clear cut indication of growth keeping all the doubts aside.Plant de-bottlenecking to improve the paper manufacturing capacity to 45000 tonnes per annum. Last year average sales from paper per MT is 45k and on pulp it is 32k. This year already Kraft paper prices are increased by 23% or 6rs per kg, now improved prices together with plant de-bottlenecking is going to improve sales & net profit. On top of it tableware plant will come into stream line during Q3 will augur well for company.Promoters converted preferential warrants to equity is another confidence indicator of YPL business, subsequently promoter stake increased from 35% to 40%.YPL successfully came out of CDR package, which would lead to a reduction in the average interest cost of loans – the benefit of this is expected to reflect in the current year. Similarly completed repayment i.e unpaid deposits of 1.2cr for the previous period.  The reserves of the Company stand at 22.49cr during the year as compared to 14.86cr in the previous year 2015-16.

Operational Efficiencies:
Self reliant considering own power production from Rice Husk & Steam based power plants. Out of total capacity of 8.5MW, one power plant 6 MW is used for Unit 1,2 & 3 operations. Second power plant 2.5 MW is for power back as well as for Tableware plant.Recovery of spent chemicals & lime from recovery units making it reusing the every resource perfectly back into manufacturing process is what sustainable according to me.Installation of egg tray machine based on 100% usage of ETP sludge is completed and egg tray production is increased from 5,71,900 in 2016 to 65,15,550 pieces of egg tray 2017. Remember sludge is generally a waste generated during paper production, good that company is effectively using the waste material.Automation in Softwood pulp mill , step towards plant automation making the product quality right all the time coupled with operational stability.Development of new colored grades of paper for domestic / export and successful trial at plant scale.Research about Silica extraction from rice husk ash is an interesting area currently company is exploring.Development of stone paper from lime sludge, already lime sludge is used as paper filler at one end.

Growth trigger in the form of New Unit:
YPL plans of setting up of 100% biodegradable products from bagasse-based paperboard single use biodegradable tableware at Faizabad (Uttar Pradesh) with an installed production capacity of 3,300 MTPA  is completed and trial Production also completed this month. These products are sold under CHUK brand and i expect Q3 onwards revenue contribution will come from this plant. Once the Plant get stabilize, expect 90cr business with this plant alone in next 2 years with good margins considering value added custom products in nature.

This plant starts with initial capacity of 3300 MTPA in next one year can be doubled the capacity to 6600 MTPA , this plant expenditure is close to 51cr gathered by way of internal accruals + financial borrowings.

Already yash enjoys niche clientele in the form of KFC, LIC, MCD, Coffee day etc..now Yash got 9 clients for CHUK products such as Food Panda,Paradise hotels,Pizza hut, costa coffee targeting quick service restaurants. These products are priced between 1-7rs making affordable across the usage chain and protecting the margins. 

As people are more becoming educated and changing their life style or food habits according to eco friendly environment. Similarly Govt also focused more on protecting environment with different policy initiatives such as Clean Ganga, Swatcch Bharat, i expect company products will appear soon in Indian railways as well.

 
Altogether company is clearly in a bright spot considering Existing plant de-bottlenecking, New plant commercialization, product offering to bigger players, favorable pricing with 6rs price increase in last quarter, CDR exit reducing interest rates..is it called inflection point in company journey, YES is my answer.

Vardhman Holdings Limited

Buy Vardhman Holdings Limited (Share it with others too., your appreciation is my motivation)

Current market price: 3670. Long term target: 7500. Book Value: 1435. P/E Ratio: 5.5

Sector: Finance

Industry: Finance - NBFC 

EPS : Rs.663.35

Book Value : 1435.16

Price/Book : 2.63

P/E : 5.5

Industry P/E : 43.66

Source: https://sharemultibaggerstocks.blogspot.in/?m=1

About Company

Holding company of Vardhman Group Stocks.

Holds shares of Vardhman Textiles, Vardhman Special Steels & Vardhman Acrylics.

Also holds shares of Infosys, Sun Pharma, Asian Paints, Havells.

Source: https://sharemultibaggerstocks.blogspot.in/?m=1

Key holdings: Market Value

Vardhman Textiles Rs.1,975 Cr

Vardhman Special Steels Rs.34 Cr

Vardhman Acrylics Rs.4 Cr

Total Rs.2,013 Cr

Market Cap of Vardhman Holdings: Rs.775 Cr

Cash/Current Investments as of September 2017: Rs.200 Cr (so they are cash rich, in fact most of the cash is deployed into current investments)

It is a zero debt company.

If you look at market value of Investments verses it's own market cap it's trading at a 60% discount to its value of Investments. 

If we remove the cash from that ie. Ex-cash it's trading at a discount of 70% to value of Investments.

Source: https://sharemultibaggerstocks.blogspot.in/?m=1

But concern for company is earning mostly through dividend though the earnings per share has gone up from Rs.35.85 in FY13 to Rs.150.9 in FY16, dividend has remained constant at Rs.3 per share.

Another concern is the free float for the company is very low.

Promoters 74.9%

Baring India PE 2.94%

Anil Goel 2.94%

Seema Goel 1.03%

Anand Shah 1.93%

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