Panasonic Energy India Company is a 58 % subsidiary of
Japanese multinational electronics company
Panasonic Corporation. Company is the manufacturer of batteries and lighting products india. It is
one of the top three producers of these products and selling under two brands-
NOVINO and Panasonic.Company selling Zinc Carbon batteries,Alkaline
Batteries,Rechargable Batteries and Torches.PEIL having two manufacturing
facilities in India ,one each at Vadodara( Gujarat and Pitambur ( Madhya
Pradesh) .India is a country with very
low per capita consumption of batteries compared with many other countries
which is expected to grow going forward.Potential of battery operated electronic components
like remote control,toys ..etc are increasing and this trend offering the possibility
of steady growth .Recently company
introduced rechargeable batteries under the brand “SANYO –Eneloop” .Company
sourcing part of its raw material requirements from overseas and any
appreciation in Rupee will help the company to increase margins.Even in adverse
exchange ratio situation in past few quarters ,company reported better numbers
by increasing operational efficiency.
Valuation and Recommendation
Company reported a turnover of Rs.174 Cr and a net profit of Rs.5.04 Cr in 9 months
ending December where as its last full year profit was only Rs.2.46 Cr .Company
is expected to report an EPS of Rs.9-10 in full year v/s Rs.3.28 reported last year . In FY 2012-13 company distributed a dividend of 20 % and it
may hike to 25 or 30 % in this year.
On
valuation basis this stock is not too much expensive even at current level but it
appreciated substantially (about 20 % ) in last week alone ,hence we can’t rule
out the chance for a mild correction .Because of this reason recommending to enter after a consolidation
if you are an investor with low to medium risk appetite. CMP Rs. 73
Link to company website HERE
Disc : I have vested interest in PEIL
Link to company website HERE
Disc : I have vested interest in PEIL
This is first time I am hearing to enter after consolidation is over, else every time the stock was already up nearly 30-40% just before the recommendation itself but still it was recommended to buy at the current levels... happy investing :)
ReplyDeleteAtul
DeleteWhether a stock appreciated 50 % or 100 % in recent time is not the benchmark for my recommendation but the difference between current price and the remaining opportunity .Here in this case ,margin expansion is mainly expected due to strengthening rupee and the recent movement in rupee is highly influenced by the anticipation of a strong government post general election . But I don't think anyone can predict with 100 % confidence that a stable govt will come to power .So If you believe such a situation you can go ahead even at current price.
atul, so what are you expecting from vpji's recommendations? 30 - 40% rise in one week after your purchase? if its the case its a disappointment, please remember vpji is doing this for free without charging a single penny from anyone and in return he gets the blame!
Deletewhy you are coming here and posting? there are 100ds of blogs like this because vpji does his homework and write on quality stocks on his blog and that benefited to most of us, have you ever tried on finding a stock your own out of ten thousond companies listed in indian stock market? if you ever does you know the pain of doing it, personally i benefited a lot from vpjis recommendations in long term like heritage, kaveri etc,
i have a request to vpji, please make this site as a paid site, it will be financially beneficial to you as well us, and you dont need to hear any of these.
Thanks,
jay.
Thanks V, I got your point on consolidation and I personally think, all your investment advice going ahead for next 2 months will be recommendation to enter post stability/clarity about the govt.. Keep up the good work.. happy investing :)
DeleteI like this suggestion .Huge front running is evident in this stock if one check its trading pattern in last week .A sensible request by VPji
ReplyDeleteThanks
Arnold
VPji was given the clues and why you were not acted on this last week? just like you there are lakhs of people following this blog and there are smart guys who cracked the clue and bought this in advance, please remember one thing buddy, just sitting idle and blaming others doesn't bring anything for you, you will find issues in every good things that happens around, think positively, whatever vpji recommends is not something for day trading, its fundamentally strong stocks which can give good return in long terms like 3 5 years, if you are looking for short term gains better to look somewhere else.
Deletethanks,
stallon.
Guyz...as per my understanding....this is a fundamental pick....in case ppl. are worried about last week/month's rise.....a technical approach...then do a little work,slog your backside and analyse the recommendation technically and then take a call.....rather than criticizing VP or similar bloggers for just sharing their findings.....ek tho maal free ka chaiyeh aur saath mey sabko ghar jaaney ka kiraya bhi chaiyeh...Wah.....MERA BHARAT MAHAAN!!!!!!!!
ReplyDeleteCongrats vp
ReplyDeleteSir
ReplyDeleteif you think the Rupee will appreciate then can one look at Infra, Housing finance and power sectors?
rgd
I don't think rupee appreciation will impact much on infra companies other than some positive impact on overseas loans .But if the new govt can end policy paralysis that will help a lot .In case of power cos , coal import cost may be reduced.
DeleteCan Aries Agro be bought for long term at CMP ??
ReplyDeleteMay wait till the initial prediction of Met department about this year monsoon.
DeleteNot only this stock; most of the other small/ mid cap stocks also appreciated 10-20 % in last week. I think people should enter at this level, atleast partially with their capital. Sometimes they even won't get opportunity to see this level in future.
ReplyDeleteDear VP sir
ReplyDeleteThanks for your selection . Pls advice which is the correct price to enter this stock . Can we enter in 50 55 range
I think you are extremely conservative. :)
DeleteCongrats for the new recommendation...!!!
ReplyDeleteCan you please provide your comments on the below
ReplyDeleteV2 Retail allotted 39,52,720 warrants to be convertible at the option of Warrant holders in one or more trenches, to Mr. Akash Agarwal, the Promoter and/or Promoter Group with each warrant carrying an option/entitlement to subscribe to one equity share of the face value of Rs 10 each.
It is clear from itself ,what explanation you need ?
DeleteSir, Can you please comment on Simran Farms? Is this a buy at this level and during this season or better to sell off and rearrange the capital to some other company?
ReplyDeleteSir it is noted that almost all stocks had given the gain in terms of 2 times to 20 times in recommended stocks. However i could not make recent overall gains because of early selling and lack of waiting greed. Hope we will improve upon conviction intetms of time and valuation becoming the true investord!!! Cheers...
DeleteLater requested many times to avoid till softening in food price .Major portion of total cost is cost for feed in case of this company.
DeleteDear VP Sir
ReplyDeleteLindly provide your assesment on the following stocks
Brand House retails which was quoting above 25 is now avialable for Rs 2 .
Marg ltd which was quoting one time 300 is now available for Rs 8
I am not positive on Brand House and not tracking Marg
DeleteDear VP ji, liberty shoes has announced the merger of its subsidiary now. Yr valuable comments on this, pls...
ReplyDeleteThis info already shared in my previous posting on Liberty.
DeleteThanks for all your recommendations. Very useful content in this blog. Can you please let me know your views about investing in "Balmer Lawrie and Company"? The company is a debt free one and has good dividend track record as well.
ReplyDeletePurely on valuation basis this stock is attractive. But it is an over diversified company
DeleteSir do you see value in MMTC at current marked price
ReplyDeleteFrankly speaking , I don't like it.
DeleteYour comments on Sharon biomedical, given the expansion
ReplyDeletesir regarding sms pharma can one enter at this level.please reply it is trading below the recommended level
ReplyDeleteAlready replied by VP Sir more than once.you should go long for at least one year horiZone.
DeleteOtherwise,I belive Cravatex Ltd is a good bet for medium term and long term both.
Please use search option, the query is already addressed ....
DeleteShould one make entry in Greaves Cotton?
ReplyDeleteNot tracking Greaves cotton
DeleteYour expert advice on shipping corporation?
ReplyDeleteExpecting sideways movement in medium term
DeleteVery less write up for this company ......
ReplyDeleteMore points already given as clues.
DeleteSir one can take fresh position in v2 retail at cmp of 14.5. Holding period of one year. Pls suggest
ReplyDeleteNo change in previous opinion
DeleteSir give your idea on IDFC after alloting banking licence pls.
ReplyDeleteShort term pain long term gain .....
DeleteCan I buy Can Fin Homes for long term? Pls suggest entry price.
ReplyDeleteThanks & regards.
Stock already recommended more than once and it is a HOLD for me.
Deletethird time... I hope I will get listed this time... praying .. praying
ReplyDeleteDue to this research, I found few good stocks; if you are tracking anyone of these then please please please post your feedback
Chemfab Alkalies Ltd.
APM INDUSTRIES
Elegant Marbles & Grani Industries Ltd.
Flex Foods Ltd.
Goldiam International Ltd.
Haldyn Glass Ltd.
Virat Crane Industries Ltd.
Panasonic Carbon India Co. Ltd.
Only stock I am tracking is APM which already appreciated about 100 % from the recommended level.( Recommended @ Rs.69 when its FV was Rs.10 which now splitted into 5 shares of Rs.2 each)
DeleteI would like to urge to the blog readers that kindly read the comments also followed by the article posted. I have seen many blog readers asking the same question again and again, which has already been answered previously. Practically its not possible to answer the same question every time . Kindly do some work on your part also. At least you do this also and in case if you find this hard then investing in stock market in not for you. No one here is to spoon feed you.
ReplyDeleteSir , Are you tracking Munjal Showa , Lahoti Overseas . Can I enter in these at CMP.
ReplyDeleteThe company had miscellaneous expenses of 34.41 crores in 2013 and 34.72 crores in 2012. This is the highest net figure after sales. What are they saying they incurred this for? This makes me feel very uncomfortable...
ReplyDeleteWOW! Board approves 35% dividend as compared to 20% last few years ... I believe golden days at yet to come for Panasonic Energy
ReplyDelete