KAMADGIRI FASHION LTD. - BUY

KAMADGIRI FASHION LTD.

Listed on BSE only
Sector: Textile
CMP: Rs.26.38

Company info: 
Kamadgiri Fashion Ltd is into business of Textile weaving and allied activities.
It has expanded vertically into:

• Weaving
• OTC brands (True value & True Linen)
• Apparels (Private brands & Strategic tie up)
• Uniform solutions

The weaving unit is located at MIDC Tarapur, just 100km from Mumbai, with easy access to the excellent logistic advantage. Also, there is very good connectivity between weaving unit and the warehouse.

The company has inhouse manufacturing capacity of 3000 units of casual shirts, 4000 units of trousers, 5000 units of formal shirts and 3200 units of DENIM per day. The company has stte of the art manufcturing fcility with advanced technology wrapping, sizing and weaving machines. The company also has a well equipped design studio.

Unique selling proposition:

1. Company has strategic tie up with Future Group for supply of 2 million garments p.a.. These garments are sold under various renowened brands like; John Miller, Lombard, Bare, Lee Cooper, Knighthood, etc.
2. The company sells OTC brnds such as 'True value' & 'True line'.

3. The company spelisises in "Uniform and dress code requirement of corporates and industry across sectors such as  Retail, Hotel, Aviation, Healthcare, Education, Software, Manufacturing and many more.

Key clients include: Mexus education, Pantaloon, IPL, BCCI, Carving dreams, Lilavati Hospital, etc.

4. The company has very strong Domestic & International customer base like; 

Domestic Buyers:
Raymonds, Park Avenue, Arrow, Blackberrys, Spykar, Parx, Monte Carlo, Killer, Cotton By Century, Wills, John Players, Lombard, Lee cooper, John Miller, Bare, Annabelle, Indigo Nation, UMM, Rig, Globus, Max & many more.

International Buyers:Next, Debenhams, Burton, River Island, JEFF Banks, Jesper Conran, Top Man etc.

5. Good corporate governance and Strong Management.

The key driving factors for the fast growth of this industry are: 

• Increase in demand of clothes due to increased economic/corporate activity in coming years such as Retail, Hospitals etc. In fact, growth of this sector is directly proportional to the growth of economy.
• Governments proposal to come up with refreshed concept of Textile Clusters across India.

Financials:

• Book value- Rs. 51
• EPS- 5.78
• P/E- 4.35
• Latest dividend %- 15
• Zero debt company.
• Promotor shareholding is just 35% --> Potential takeover company.

Target: Expect the stock to reach Rs.55 in 6-8 months time.

Stock market boom coming up...Rakesh Jhunjhunwala

Stock market boom coming up; extremely bullish on economy: Rakesh Jhunjhunwala
http://economictimes.indiatimes.com/news/economy/indicators/stock-market-boom-coming-up-extremely-bullish-on-economy-rakesh-jhunjhunwala/articleshow/37114289.cms

Kernex Microsystems - BUY

Sector : Computers-Software Medium & Small

BSE/NSE: KERNEX
CMP (Rs): 75.40

Company Info:

• Kernex Microsystems India Ltd was incorporated on September 16, 1991 as a private limited company.
• The company was registered as 100% Export Oriented Unit with Software Technology Parks of India, Department of Electronics, Govt. of India, New Delhi.
• The company is engaged in the Manufacture and sale of Safety Systems like Anti-Collision Devices for Railways and Software Services.
• ISO 9001:2000 certified company with expertise in Software, Hardware development and Systems Integration.
• The company holds exclusive license for manufacturing, installation, commissioning and maintenance of anti-collision systems in India.
• The company is also an outsourced facility for the Konkan Railways Corporation Ltd for manufacture and supply of ACDs and related accessories. They are also a technology partner for the development and implementation of ADDs for Metro Sky-Bus Urban Transportation System, Advanced Railway Signal Systems and other safety systems. They hold the exclusive marketing rights of ACD systems all over the world except India.

Unique Selling Proposition (USP):
The company has expertise but had to wait for the right opportunity.
For years, the Railways has been a sector under government control. Very less efforts are made towards improving & modernising it.
With the onset of new regime in India and serious focus on Railway modernisation, a new dawn is setting for the companies into this segment.

Kernex is not a new player. It has worked with Konkan Railways ACD projects. So will definitely get a major share of the bigger pie.

Govt's initiative for introduction of enhanced versions of train like 'Bullet train' and 'Sky bus' will certainly create newer market for the company.

Financial performance:
Looking at new market opportunities and renewed HOPE of modernisation of Railways, company's poor financials in last 3-4 years should not be a real matter of concern.
Kernex's book value is Rs.102 which is almost 1.5 times of its current market price.

Target:
The company share may reach upto Rs.120 in a time horizon of 1 to 1.5 yrs.
For short term investors, expect the stock to reach upto Rs.90-95 post presentation of Railway Budget in Jul-14.

Indiabulls Power- BUY

Listed at NSE & BSE
Scrip code:  IBPOW
Sector: Power Generation/Distribution
CMP(Rs.): 12.95

Company Info:

1. The company is into Power, Financial services, Real estate & Securities services.
2. AMRAVATI THERMAL POWER PROJECT (1350 MW) is being setup by Indiabulls Power Ltd. (IPL.) at Nandgaonpeth, Amravati district, Maharashtra
• The primary fuel for the Project is Coal for which coal linkage has been granted and letters of assurance from South Eastern Coalfields Ltd. (SECL), Western Coalfields Ltd. (WCL) and Mahanadi Coalfields Ltd. (MCL) have been issued.
3. Nasik Thermal Power Project (1350 MW) is being setup by Indiabulls Realtech Ltd. - a subsidiary of Indiabulls Power Ltd. at Sinnar, Nasik district, Maharashtra. The project site is easily accessible from Nasik, Pune & Mumbai.
• The primary fuel for the Project is Coal for which coal linkage has been granted and letters of assurance from South Eastern Coalfields Ltd. (SECL), Western Coalfields Ltd. (WCL) and Mahanadi Coalfields Ltd. (MCL) have been issued.
4. The company also deals in Power trading business on the energy exchanges.

Unique Selling Proposition:

• Renewed focus of Government on power sector to meet the demand.
• Restructuring of Coal supply to power producers on the cards
• Reportedly, government is also looking into easing the Financing of power sectors.
• Since the company is a new entrant in this business, has a lower baggage to carry from financial perspective.
• Company seems to be looking to capture a big chunk of Renewable energy business.
• Expect favourable announcements in coming General budget
• Thia stock is happening and is HIGH RISK-HIGH GAIN kind.

Financials:

Current financials of the company are not attractive

But future is surely green for this company.

Target:

Again I repeat. This is a HIGH RISK-HIGH GAIN stock.

Investors with high risk appetite only, should consider this stock.

It has potential to reach Rs.40 in a years time (by Jun-15).

NHC Foods - BUY

Only listed on BSE - Scrip code: BSE: 517554
CMP (Rs.): 41.35

Company info:

• NHC FOODS LTD is a one stop shop for all ground & blend spices in the Indian Spice Range.
• The company has advanced infrastructure:
• Safety net installed so that no bags drop off when container opens
• Latest Buhler cleaning plant
• Facilities for hygienic packaging
• Z series color Sortex
• Machines for grading
• The company also deals in export of Spices, Oil seeds, Raisins, Chick peas, Animal feed, Pulse & Rice, etc.

Unique Selling Proposition:

1. Company is food business, so has huge potential of growth in India.
2. Company is a government registered Star export house
3. Company has recently bagged order from Central Police Canteens
4. Huge potential of growth for Agro cum Food business 

Financials:
 

	Mar '14	Mar '13	Mar '12	Mar '11	Mar '10
Revenue	140.21	133.91	90.68	73.11	0.52
PBT	2.18	2.39	0.75	0.48	-0.27
PAT	1.55	1.61	0.46	0.45	-0.2
EPS	2.6	3.59	1.42	1.39	--

Target:
Target the stock to reach Rs.50-55 in a 2 years time.
Stock suitable for investors having patience.

Back with a bang...

Guys....regret for not posting for last few weeks due to some personal reasons.

But now, back with renewed zeal & vigour.

Will post 3 'Strong Buy' recos by this Saturday (21st Jun).

Update on USHER & PIX: HOLD (Already appreciated for @25% each in just about 90 days)

Happy investing.