As the name indicates, this company (CMRL) is based in Cochin,Kerala having manufacturing facilities to produce Synthetic Rutile (45000 TPA), Ferric Chloride (24000 TPA), Ferrous Chloride (72000 TPA) and Cemox18000 TPA.These products are made from Ilmenite using indigenous technology.These products are used in Welding electrodes,abrasives,paints,Effluent treatment,inks,pigments,bricks and tiles..etc.Raw material for these products - ilmenite-is mainly sourced from the beach sands of Kerala.Water desalination plants in Gulf countries are one of the major customers of company's products.Since the number of companies producing these products are very few in India , company is enjoying good margins.For the latest quarter ended September 2011,CMRL posted a turnover of Rs.47 Cr v/s Rs.31 Cr and a net profit of Rs .8.2 Cr v/s Rs.90 lac .Six month EPS is Rs.13.75/-Company is a consistent dividend payer too.Since company is earning major portion of income from exports ,favorable exchange rate situation also helped the company to post good results.Proximity of the source of raw material is one of the biggest advantage of CMRL .One of the major concern about the company is the frequent opposition of local people against sea sand mining.There is also some allegations about some transactions between a public sector unit and CMRL.Being a 20 year old company ,it is expected to handle these local issues effectively .Based on the robust performance there is reasonable chance for appreciation from its current market price of Rs.78/-
Dear Value Pick
ReplyDeleteOf late, I just started observing your recommendations. They are nice.
May I request you to give your valuable opinion on the following scrips
i) Jindal Poly Films Ltd and
ii)Riddhi Siddhi Gluco Bio Ltd
iii)TTK Prestige Ltd
Regds
aravindpc
dear vp,
ReplyDeletei request your opinion on varun industries.please give reply.
siva kumar
Sir,
ReplyDeleteIs it right time to buy Websol, considering the present situation of energy companies
please give ideas.
Madan
Dear Aravind
ReplyDeleteNot tracking Jindal Poly, I don't think the attitude of the promoters of Riddhi Siddhi is good towards minority share holders.TTK Prestige may consider only after a reasonable correction for fresh BUY
Dear Siva Kumar
ReplyDeleteI believe something is fishy in Varun Ind and not recommending it for a Buy.
Its 3 april 2012 today. You rightly pointed out long back about varun ind. I also tempted to buy it last month, thank God, I waited and the stock started falling. I logged on to your site first time today. Now enjoying it.
Deleteregards
Abhijit K.
Dear Madan
ReplyDeleteNon conventional energy stocks always catching the attention of the market only when there is heat in crude prices.If you are ready to wait for long time, BUY Websol
Hi sir,
ReplyDeletei need ur view abt lakshmi energy and food,,. book value is 101, pe is 2 and eps is 9. now its trading at 19. is it a value buy...
they r also launching their own brand lakshmi foods in coming qtr.
Dear Friend
ReplyDeleteLakshmi Energy having huge debt , so no opinion on it
Hi Sir ....
ReplyDeleteWhats your take on Flex foods.
I just started observing your recommendations
ReplyDeletethank you
Dear Sir,
ReplyDeleteI am regular reader of your blogs.
I appreciate your efforts to throw the limelight to un known companies having huge potential to growth.
I would like to know your valuable opinions of my two value picks. Bliss GVS Pharma & Philips carbon black,both these companies had exhibited a good performance in previous quarter & expecting to do well in future also.
Pls comment from your expertises....
Thanking you,
Shanid.
Hlo VP , for what target can i buy CMRL and is it short term or long term buy?
ReplyDeleteDear Friend
ReplyDeleteNot sure about the scalability of the current business of Flex Foods, so no opinion
Dear shanid
ReplyDeleteBliss GVS is not bad.Regarding Philips carbon- Based on the financial parameters it is OK , but if we consider the history of RPG Group , I can't suggest any company from this group for investment .But We can't say whether the new generation will change their mentality towards minority share holders.
Considering the inconsistent performance of CMRL shown in the past ,better to book profit in reasonable gain even if it is in short term.
ReplyDeleteDear Valuepick,
ReplyDeleteThank you for your valuable feedback.
Shanid.
hey on your recommendation i bought vijay shanti builder. I am in huge loss my frd..suggest me what to do next..
ReplyDeleteDear Valuepick, Thanks for your frank and informed opinions on stocks. I have sizeable holding in Edserv (@Rs 230), UB Engineering (@Rs 200), Glodyne (@Rs 425), Zylog System (@Rs 470)and Birla Shloka (@Rs 30), MOIL (@Rs 460). My more than 50% money is gone. What are your suggestions on these stocks. Should I buy at lower levels and average the prices? - Manu
ReplyDeleteDear Friend
ReplyDeleteI have recommended Vijay shanthi @ Rs.35 which is currently trading around Rs.16/- But it is a fact that it moved over 40% within one month of the earlier recommendation.Anyway there is nothing wrong with the company but the current market sentiments towards interest rate sensitive sectors is very negative.Expected to change this mood after two qtrs.Better to hold and average now.
wat is your view on apar industries?
ReplyDeleteI have great respect to your pick and analyst .
ReplyDeleteYou can give good example to other Bloggers with you r Disclosure . Please declare disclosure when you recommended stocks. We all are committed and responsible towards investor community. Thanks
I am new to the stock. i want to invest 10lackh in shares market . Which share is giving for the period of 5 to 10 years 10 times double + profit . i want to keep for our children. i hope u will give the best stocks which i will 4get for 10 years.
ReplyDeleteRegards
Roshan