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.

Pix Transmissions Ltd. - BUY

 

Listed on BSE only
CMP- Rs. 34.10
Target- Rs. 48

PIX Transmissions Ltd., is the leading manufacturer of Belts and related mechanical transmissions products in India.  The Company has state-of-the-art Belt manufacturing units as well as a completely automated Rubber Mixing facility in Nagpur.

The product range includes;

• Industrial Belts
• Automotive Belts
• Harvester Belts
• Powerware & Hydraulics products

Brief history of the company:
- Established in 1981
- Listed on BSE in 1989
- Established PIX Europe Ltd., United Kingdom in 1999
- Acquired Distag Euro Ltd., United Kingdom in 2000
- Established PIX Germany GmbH, Germany in 2004
- Established PIX Middle East FZC, UAE in 2007
- Acquired Flexequip Hydraulics Limited., Northern Ireland in 2007
- Started fully automated centralised mixing plant at Nagalwadi, Madhya Pradesh in 2009
- Established PIX Hydraulics & Transmissions Ltd., China in 2009

Current industry environment:
Pix transmission supplies to TIER1 suppliers and Some OEMs which are into manufacturing sector.
So sales of the company are directly corelated to the prevailing interest rates.
It is quite evident that, the rates are at their peak and with WPI inflation lowering to 4-5% and likely change of government at the Centre, RBI may drop the interest rates.
This will boost the sales further.

Financials:

	All  values in Rs. Cr.
	Mar '13	Mar '12	Mar '11	Mar '10	Mar '09
Net Sales	232.09	216.73	228.29	169.34	178.84
Total Expenses	199.7	175.34	182.3	137.39	156.06
Operating Profit	32.39	41.39	45.99	31.95	22.78
OPM as % of Net sales	14%	19%	20%	19%	13%
Net profit	106.54	0.62	3.64	0.7	-3.99
Equity Dividend (%)	45	0	7.5	0	0

Due to slowdown in the manufacturing sector, projected sales by Mar'14 are likely to be lower than previous year. However, Q1-F15 will coverup due to likely factors as mentioned above.
The OPM of the company has been consistently maintained above 15%.

The company has substantially reduced its Debt burden during last year. The Debt/Equity ratio has fallen from 5 to 0.6 in FY13. This will provide leverage for the company for further expansion.

During FY15, the company is likely to surge in terms of financial performance. The stock may give as much as 40% return by 1st Half (Sep-14).

Within 6 months, expect the stock to reach Rs.48.

Investors with slightly high risk taking capability should pick this golden stock.

Company link: http://www.pixtrans.com/

Disclaimer: It is safe to assume that I have vested interest in this stock. This recommendation is purely based on personal understanding and is not responsible for any loss arising out of investment, whatsoever.

USHER AGRO LTD.- BUY

Scrip ID- USHER

Listed on- NSE / BSE

CMP- 33 / 32.95

Sector- Food processing

Agriculture contributes to 20% to India's GDP and 10% to India's total export earnings besides providing raw material inputs to many industries like textile, paper, sugar etc.

The size of India's food processing sector is estimted to be US$157 billion in FY2012 and is expected to grow at a CAGR of 20%.

 

USHER Agro Ltd. is into business of Food processing, Packaging and Sales under various brand names.

The product portfolio stands as below:

  

 

• As of December 2012, the company is having an installed capacity 7,15,400 MTPA for Rice & Wheat milling.
  
  
• Plants are located at Mathura, Chhata and Buxar. These locations happen to be in the proximity of sourcing centres of the Raw materials thereby reducing the burden of transportation.
  
  
• All these plants are fully automated and modernized. The processes of drying, storing, grading and finishing are fully automated resulting in cost saving and optimum utilization of the capacity.
  
  
• Company has Research & Analysis tie up with IISc Bangalore.
  
  
• The company has commenced a Cogenerative Captive Powerplant of 16 MW capacity at Mathura facility. This power plant is eligible for CDM & REC benefits and is also registered with UNFCCC for getting Carbon Credits. 
  
  
• Company has entered the exports market in 2010. Exported Rice worth Rs.11 Cr to 22 countries including Middle East, African & European countries.

Management & Financials:

The management team led by Dr. V.K. Chaturvedi (Managing Director), is quite experienced in food processing sector.

Quarterly performance:

Yearly performance:



P/E: Company's P/E is 2.66 as compared to the industry P/E of 34.11.

The stock fundamentals are sound and, it is evident that the stock is undervalued in comparison with the peer stocks and has huge potential to grow.

Operational efficiency of the company is amazing.

Also, the company is looking for related diversification to stamp its presence in the entire value chain.

This is one stock which seems to be a dark horse (missing from daily highlight.).

With the general elections round the corner and emphasis of both major parties on Agriculture & Food processing sector, the stock may even touch Rs.90 in a year's time.

Investors with slightly higher risk taking appetite can opt for it.

Link to company website http://www.usheragro.com/home.html

Disclosure: It is safe to assume that I have vested interest in all the stocks that I recommend.



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