Wednesday, October 24, 2012

INDO AMINES LTD - KEEP IT IN YOUR RADAR





Indo Amines Ltd ( IAL - BSE CODE 524648)  may be an unknown stock to many of you .Even this stock  is not a widely discussed one  , this  company is a silent performer showing steady business growth for the past many years.IAL originally incorporated as Techno chemical industries in 1979 and later changed its name to the present one.This Thane based company manufacturing various types of  Specialty,Fine and Performance chemicals finding applications in Petroleum industry,Agrochemicals,Pharmaceuticals ,Construction and Fertiliser.Company operating three manufacturing facilities in India at Thane,Baroda and Mumbai.It is one of the largest producers of fatty amines in India..Its turnover grow  from Rs.85 Cr to Rs 200 Cr during 2008-1012 period.But the growth in bottom line was slow compared with top line growth. The following points demanding a close look at the company now even if it is trading at its 52 week high price. First one is , company’s plan to concentrate in high margin products  including some new additions to its existing products list .Effect of this initiatives already started reflecting in first quarter itself where its net profit improved 100 % compared with last year same period.Second is ,promoters of the company now subscribing  4300000 warrants at a price of Rs.17/-  and also merging  some of their privately held companies into this listed entity.These process will increase their stake in the listed company from the current level of 56 % to near the maximum permissible level  . Excluding this ,promoters already hiked their stake in recent past very aggressively through preferential allotments. (For details ,click HERE) Another point is ,In a recent filing to BSE, (To read ,click HERE) company informed their decision to set up a new plant at Dhule, Maharastra with a capital outlay of  Rs.20 Cr .At present company having some debt in its balance sheet but promoters decision to pump more money through equity route will bring down the debt equity ratio going forward.Watching the trend of past few trading sessions ,I feel  some kind of an accumulation is going on in this stock and it is a stock worth keeping in our watch list and high risk investors may even add a small quantity with a long term view.This Rs.200 Cr turnover, dividend paying  company is trading with  a market cap of just Rs 28 Cr  @ CMP Rs.29/-

Link to Company website HERE

45 comments :

  1. Hi Valuepick,

    Request you to put some lights on the Indian Government Generic Drug policy effect on Indian Pharma companies like Granules and Sequent?

    Regards,
    Vikas

    ReplyDelete
  2. Dear Vikas

    More than once commented on this subject.These laws are applicable only for the drugs selling in India where granules is selling almost 97 % abroad.I don't expect any serious impact on pharma cos- other than some MNC's- on this account.

    ReplyDelete
  3. Dear VP Sir

    After your recommendation on 13/10/2012 ,Babino Agro closed only in upper circuit on every day .A big applaud to you sir.

    Thanks ,Vinay

    ReplyDelete
    Replies
    1. Hi vinay

      I lost a good opportunity in Bambino,After reading VP Sir's recommendation I decided to purchase it.But on a second thought I refer moneycontrol message board and read the opinion of a boarder that VPji recommended that stock at yearly high price and no chance to further gain.Bambino gained almost 35% in just 7 trading sessions from there and still in upper filter.Now I realised no meaning in thinking that a stock is untouchable only on the reason of at 52 week high price.Future potential is more important and now I think this Indo amines is another gem like Bambino and will hit a series of circuits.I could not find a single recommendation on this stock out side this blog and accepting VP sirs speciality to spot out these type high potential stocks from thousands of listed companies.

      Shriram
      Theni.

      Delete
    2. One thing I have started believing after reading his blogs that some stock are worth buying for 1000 rs even if its on a 52 week high and some are not even worth buying for 1 re :)

      Delete
    3. Bambino Agro trade is not accepting for me because of T group stock. Broker told that they don't have access to trade T Group stocks.
      Very Sad.

      Delete
  4. HI SIR.......
    HAPPY VIJAYADASHMI TO YOU AND YOUR FAMILY...

    MY QUESTION

    CAN I GO FOR A BUY IN INDO AMINES AT CMP , IF I HAVE CONVICTION. OR JUST WAIT A LITTLE TO SEE ITS FURTHER MOVES..

    ReplyDelete
    Replies
    1. Dear Raj

      Same wishes to you
      I presented my opinion on Indo Amines ,rest depends on your conviction and risk taking capacity.

      Delete
  5. Sir,
    Can i have your opinion on Balaji Amines ?

    ReplyDelete
  6. Hi sir...posting again same query which missed earlier...
    GPIL - hovering around 120-124 since so many days..is something cooking behind the script or is this a silence before upcoming storm??
    Any new updates on GPIL?

    ReplyDelete
    Replies
    1. Dear Mayur

      This stock recommended just one month back.I believe the performance of the stock price of any company depends on the business growth of that and one month is not a time.

      Delete
    2. Hi,
      I have bought it at 121....it is going up and down...but believe me once the metal space improves...this stock will surely perform...because even in such bad times it is holding on :)

      Thanks sir for recommending it.

      Delete
    3. bambino got 40% in 1 week so people are expecting same in all stock reccommondations

      Delete
    4. I don't think matured investors think like that .Return in any stock depends on how much under valued it and how much under invested by investors in it .If a stock is popular in public domain there will be many discussions and analysis among investors and many are aware about its potential .In such cases gain will be always limited and vice-versa

      Delete
  7. Dear VPji,
    I just went through your old recommendation on Apcotex (managed by Asian paints directors)a year back (Rs 112), which now trading @190. How do you find potential of this comp after year at cmp for long term. In my own anlysis i have both + and - points, ofcourse majorly are +ve points, but got little confused.
    so want your valuable guidance.

    ReplyDelete
    Replies
    1. Normally this company's performance is moderate when natural rubber prices at lower level

      Delete
  8. What are you think about medi-cap ltd.
    market cap-15.50 crore
    eps-7.92
    pe-6.19
    equity-3.12 crore
    book value-196.00

    ReplyDelete
    Replies
    1. Management is not showing capability to scale up the business

      Delete
  9. Dear VP,

    What is your opinion on Sterlite Tech? Some people are talking of a buy back by promoters, leading to a 100% gain possible in the near future?

    Thanks, Biju

    ReplyDelete
  10. Dear Sir,
    Can you suggest whether one can enter Heritage Foods at the present level?
    I know sir that a lot depends on our convictions, but your opinions are most valuable to us.

    Thanks in advance.

    ReplyDelete
  11. Dear VP sir

    wishing you a very happy vijayadasami greetings.
    wishing all the followers of VP blog " happy Dasara"

    with regards,

    ReplyDelete
  12. Sir,
    why such penny stock scrip on Dussehra?

    Your followers need something better..got upset being you admirer and follower.


    ReplyDelete
    Replies
    1. Is it penny? .I don't think there is some relation between stock selection and special days.Always same importance for me.

      Delete
  13. Dear Sir,

    Dont get upset with such type nasty comments from some of crazy people.

    You deserve for respect from blog members.

    Take it easy..

    regards,

    ReplyDelete
    Replies
    1. Value sir,
      It was out of Love for your recommendations I had mentioned it. Not to de-respect it. I am your follower and read your blogs in detail so had mentioned it in a light vein.

      When you follow someone and trust and love him even a small change (not a significant) makes you feel that..

      Our expectations have increased because you have given nothing by the very BEST.. so love you sir.

      Apologize if have hurt any sentiments.. I sincerely apologize.

      Love you sir and wish you & your family the very best on Dussehra..

      Delete
    2. Dear Niketan

      Nothing like that , leave it man..

      Wishing a very happy Dussehra to you and family

      :))

      Delete
  14. Sir...sequent management is increasing stake QoQ...and satpal khattar has good stake in sequent...satpal investment in HDFC bank yielded him superb returns....the same growth story might replicate in sequent?......when is the sept qtr results...

    ReplyDelete
  15. Yes , other than Khattar , Shivanand Shankar Manekar is also in it .He is also an ace investor and known for his smart investment decisions

    I prefer to Hold it for long term ,looking beyond September quarter result

    ReplyDelete
  16. Dear sir,

    Whats your comment on Taksheel solutions & your old postings: milton, & pcs technologies.

    ReplyDelete
    Replies
    1. Non conviction about the management of Taksheel

      Delete
  17. DEAR VP SIR:
    I M A NEW VISITOR TO YOUR BLOG: THE WAY YOU PRESENT YOURSELF, ADVICE ABOUT THE STOCKS ,AND REPLY OTHERS WITH SO MUCH CONVICTION: I HAVE BECOME A HUGE FAN OF YOU..

    I HAVE A REQUEST OR YOU MAY SAY TOO MANY REQUESTS

    1) PLEASE PUT A NEW BLOG POST FOR THOSE STOCKS YOU HAVE RECOMMENDED IN PAST, BUT STILL HAVE NOT PERFORMED OR UNDERPERFORMED, YET U HAVE CONVICTION THAT THEY WILL DO WELL IN FUTURE.
    2) IF POSSIBLE PLEASE BLOG POST SOME SHORT TERM RECOMMENDATIONS EACH WEEK FOR WELL KNOWN OR MIDCAP STOCKS.
    IT WILL BE HELPFUL FOR SMALL FUND VALUE INVESTORS, WHO CANNOT WAIT SO LONG FOR THEIR STOCKS TO PERFORM.

    I M REALLY SORRY IF I M ASKING YOU TO DO SOMETHING YOU DONT LIKE....
    THANK YOU SIR........

    ReplyDelete
  18. Dear VP Sir,

    I accidently landed upon your blog 2 days back. Would like to thank you for your honest recommendations and in-depth research. Its difficult to find such honesty in stock markets :)!! Best thing i like about you is you also have time and patience to reply back to other people queries. :)!! Your blog does give a sense of confidence to person like me who is a beginner and person with limited money and lot of dreams to invest in Stock market.

    Lastly, would really appreciate if you can respond back on whether it is good option to buy "Basant Agro Tech" at current price - 4.99 Rs?


    ReplyDelete
    Replies
    1. Please read the post in full ,answer is at the end with some conditions.

      Delete
  19. Sir,

    What do you think of Sintex industries?
    I bought it at 92 but it is trading around 70 mark since then.

    ReplyDelete
  20. Dear Sir,

    Your view for Cairns India?
    a good buy at present level?

    Thanks
    Regards
    Hitesh

    ReplyDelete
  21. Dear VP Sir,
    Wish you and your family a Happy Dushera!!!

    Would like to know your views on Torrent Pharma & Kajaria Ceramics???

    ReplyDelete
  22. Dear VPji,

    Granules India posted >250% rise in Net Profit. Iam sure this will double and one of the excellent multibagger stock suggested by you.The Promoters are increasing stake and people who left company are buying this stock. So lets wait for few months and this should double.

    ReplyDelete
  23. Hi - It seems you missed to mention the impact of "Amalgamation between Versatile Chemicals Limited and Palkar Commercials Private Limited and Indo Amines Limited" in IAL analysis. could you please analyze and through more details?

    ReplyDelete
    Replies
    1. I have mentioned promoters decision to merge some of their privately held companies into this listed entity.Since these are pvt cos , their financials are not clearly known now.Moreover the details of merger ratio ..etc are yet to decide

      Delete

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