GOVIND RUBBER LTD.- BUY

• Friends today I am taking you through a very interesting stock that is surprisingly missed by many so called Research Analysts. The company is Govind Rubber Ltd. (GRL)
• GRL is part of Siyaram Poddar business group which is into a range of industry segments like Textiles, Agri and Tyre & Tube manufacture.
• GRL manufactures a range of Bi-cycle & Tri-cycle Tyres and Tubes. Interestingly, it is the only listed company in India which manufactures tyres & tubes for Bicycles.
• In fact it is a Global name in `this industry segment.
• Bicycle industry is at nascent stage in India and has a huge potential particularly in view of increasing health & environment consciousness.
• Company management is lead by the Poddar family, also Balkrishna Tyres (BKT) is an associate of GRL.

Financials:

• Market capitalisation of Rs.68 Cr and annual sale of Rs. 410 Cr.
• Promotor stake is more than 50%
• The company has a debt of @ Rs.90 Cr. and the management has resolved to cut the debts in its recent AGM, which needs to be monitored in subsequent quarters.
• The drop in Rubber & Carbon black prices will certainly improve the company's margin & net profit in FY15.

With its unique leadership position in this segment, rising demand for bicycle tyres globally complimented by the company's presence in Europe is going to boost the sales in coming years.

Investors with a little high patience can buy this stock.

The stock is currently trading at Rs.30 and only listed on the BSE.

Discl. - I am holding this stock

  



Dear Investors

In view of SEBI's Research Analyst regulation, couldn't post any new recos on this Blog.
There are restrictions on publication of Stock recomendations.

Kindly bear with me till the registration process is through.

In the meantime, you may pls. mail me on goldenshares.gs@gmail.com for any update & clarification.

Thanks.

SPEL Semiconductor Ltd. - the rising Sun !!

 

• SPEL Semiconductor Limited is India’s first & only Semiconductor IC Assembly & Test facility.
• SPEL pioneered the Outsourced Semiconductor Assembly & Test Services (OSAT) market in India.
• It's Parent company is Natronix Semiconductor Technology, a Singapore Headquartered Co.
• Natronix holds over 55% stake in SPEL.
• In simple terms, OSAT means a contract manufacturing partner which manufactures integrated circuits (ICs), tests and delivers to varied customers from different fields like Communication, Consumer Electronics and Computing.
• The 'Make in India' campaign of Govt. calls for indigenous manufacture of Mobiles and other Consumer Electronics items, there by reducing overdependance on Chinesen products.
• SPEL being the only OSAT fascility in India, stands poised to get the first mover advantage.
• Company's Operating Profit Margin has grown over 20% in last quarter and the company is slowly gaining momentum and turning around.
• DIGITAL INDIA strategy also complements the company growth.
• SPEL management is quite decent, stable and experienced. The track record of the management is Clean.
• The ultra advanced assy. line is at Maraimalai Nagar near Chennai.
• The customers of the company are some of the very Big names of Silicon valley.
• The company is listed on BSE and is trading at Rs.16 per share.

With these positives, one can certainly look for SPEL a multibagger in near terms.

Kindly refer link for more info. http://www.natronix.net/spel.htm
 

  

PHILLIPS CARBON BLACK LTD - There's a bit of black in everything you see

• PHILLIPS CARBON BLACK LTD. (PCBL), is part of the business conglomerate RP-Sanjiv Goenka Group, which is @ Rs.140 billion revenue.
• Carbon Black business contributes 19% of its annual sales revenue.
• PCBL is the largest producer of Carbon Black in India and 7th largest in the World.
• PCBL is the largest supplier to almost all the TYRE manufacturers in India & World.
• Carbon Black is exported to 20 countries across globe and the revenue from export of Carbon Black is @35% of the total sales of PCBL. 
• Carbon Black is mainly used for reinforcing strength to the rubber and used in the manufacture of TYRES and Other Rubber products that are used in the industry. It is available in different grades depending on the type of Application.
• Apart from the Tyre application, it is also required for the manufacture of INK, Printer Cartridges, Fabrics and many more applications that are used in daily life.
• With the economic revival & Auto industry gaining momentum, PCBL is projected to give very good results in the coming 2-3 years. The same is visible now from Q2 FY 15 results.
• The company has considerably high Debt on account of its investment towards Forward & Backward integration and also, the the company has clocked loss before last 3 Quarters. But, since the last 3 quarters, turn around has started.
  
  
  

 List of the customers is shown at the end of this Blog.

• PCBL integrates high value creating business model that encompases Co-generation Power Plants that run on the tail gas formed during production of Carbon Black. The plant capacities along with the Power output is as below.

• Revenue from the power generation from Captive power plants is 6% of the total annual income of PCBL.
•  To enhance the efficiency & profitability of the business, company is now going for backward integration & extension to Carbo Chenical business that produces the raw material required for production of Carbon Black.
• The company is trading of BSE & NSE with CMP - @ Rs.116 per share. Investors with a bit high patience will get very good returns from this stock in coming 2-3 Quarters.

 

for further details pls. refer - http://www.pcblltd.com/home/home.php?container=1

SKM EGG PRODUCTS LTD. - UPDATE

SKM EGG PRODUCTS - recommended on Muhurat Trading Day @ Rs.60 and the same is currently trading around Rs.85. I know,  many of my readers were eagerly waiting for company's September quarter results and the company keeps our faith by reporting good set of numbers. For the six months ended September , SKM reported the following figures :

I strongly believe that the  company is one step closer to achieving  its targets.  Japanese central bank's surprise decision to continue aggressive stimulus program is expected to help for an early recovery of Japanese economy. Any improvement of Japanese economy will augur well for SKM which is the most important market for the company. The main points to note in this result is the growth in top-line  even during this not so good situation in  its export markets and sharp reduction in  finance cost. Reduction in interest charges clearly indicating company's ongoing efforts to become a debt free company in next few years.Company already surpassed its last full year profit figures in this six months itself. Under the  trusted and hardworking promoters and  management , I hope company will achieve greater heights in the years to come.

In my opinion , for a disciplined investor with enough patience ,  still there is chance  for decent gain from this stock in long term.

KAMADGIRI FASHION LTD. - UPDATE

KAMADGIRI FASHION LTD. suggested on 26 Jun 2014 at Rs.26 is now trading at @ Rs.55.
Refer the link of past recommendation - http://goldenshares-gs.blogspot.in/2014/06/kamadgiri-fashion-ltd-buy.html

Also see the last line mentioned in my blog... what a coincidence. !!

Investors with High risk apetite can still hold the stock, while others can book profit now. 

FRESHTROP FRUITS LTD. - UPDATE

Freshtrop Fruits Ltd, recommended on 17th Oct-2014 at Rs.59 is now trading at Rs.91.
Still lot of steam remains in this stock.
Suggesting to HOLD further.
Refer link of past recommendation http://goldenshares-gs.blogspot.in/2014/10/freshtrop-fruits-ltd-buy-for-healthy.html