EPC INDUSTRIE Ltd - BUY

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Even if the potential  of Micro Irrigation is very vast in a

country like India, listed Companies other than

Jain Irrigation in this sector is ignored by investors  mainly

because of their inability to scale up the business.

EPC INDUSTRIE is the second largest pure listed player

in this space. This Nasik based company having an installed

capacity of 8100 Mt per annum Micro Irrigation Systems.

Company was in pathetic situation and a BIFR case  for

past many years mainly because of severe working capital.

crunch . Later in 2007, UK based PE player  Schroder

Credit Renaissance Fund  interested in EPC and invested

about Rs.18 crore to revive the company .

 The same fund again invested

in EPC and raised its stake upto the current level of  52.3 %.

In these preferential allotments ,  Schroder Credit took stake

at a price higher than the then prevailing market price of EPC ,

which indicates their confidence in this company. Meanwhile

promoters also hiked their stake through a preferential allotment.

Even there is fund infusion , turnover of the company was not

improving earlier. But now there is some  earlier signs of

improvement in this company. By effective use of working

capital , company is now started to improve capacity utilization

and margins . For the three months ended June qtr, Company

posted a turnover of Rs.23 Crore and a net profit of Rs.81 Lac

which is  higher than 50% and 300% respectively over  same

period last year. EPC is an approved supplier to the Micro

irrigation projects initiated by Gujarat and Andhra Pradesh 

State governments  which ensures a ready market for its

products. Along with this ,due to high food inflation many state

governments and Central government  taking active steps to

increase the penetration of MIS in our country .As part of this,

recently central government upgraded its micro irrigation  scheme

to a national mission with an outlay of Rs 8032.90 crore ,which

is very positive for companies like EPC. When we look through

another angle , seeing the potential here ,many world leaders are

interested to enter into the Indian MIS market .Since ,controlling

stake held by a P/E player with world wide operation ,EPC

Industries is a potential take over target for these biggies going

forward. So, those who are willing to take risk and ready to

wait, this may turn as a multibagger .CMP is Rs.61 /-

TRANSPEK INDUSTRY - REPEAT

Earlier recommended @ Rs.100/- ,CMP is Rs.119/-

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Transpek Industry Ltd is a 45 year old company established
in Baroda by Shroff Group.It is one of the largest
producers and exporters of organic and inorganic chemicals
from India. Its products are used in industries like
Petrochemicals, Pharmaceuticals,Agrochemicals ,Dyes
and polymer.Company manufacturing more than 50
products used in these industries.Out of the total sales,
close to 60% income derived from exports and balance
from domestic sales. Transpek has a good research division
too for inventing new products.In last financial year
performance of the company was severely affected by
foreign exchange loss on derivative
contracts which the company entered to hedge the risk.
Now after the stabilizing of exchange rate and improvement
in demand of company’s various products ,it is expected to
perform better in this year. One can BUY for decent return
in medium term at CMP of Rs.100/-

CHEATING - THE NEW METHODS !!!!!!!!!

In any bull markets ,promoters of fraud companies are inventing new methods to lure retail investors into their stocks.This is to make their exit easy by creating liquidity on the cost of poor retailers . Even the mandatory filing requirements  to stock exchanges are used  for this purpose ,which is really alarming . In this bull market ,BSE has revoked the suspension of many small companies.Majority of such companies were suspended for many years and revocation of trading is really helping retail investors (who caught in previous bull markets)to exit from such dead companies.In reality , intention of promoters in most of  such cases are not helping others but to exit themselves. Let us take case of a company which is re-listed today -VIRGO GLOBAL MEDIA formerly known as ONLINE MEDIA LTD. In the filing of basic details to BSE ,company has provided the name of two websites  as its own (1) http://www.onlinesolutions.com/ and (2) http://www.owens-minor.com/  . When we digging into it ,it is clear that both these address have no relation with the company and these are the web addresses of two foreign companies.It is clear that company is purposefully trying to mislead the investors by filing wrong data to BSE. In a circular by BSE on 04/08/2010 company informed that they have no website and it is only under construction.It is sad to see that even stock exchanges with or without knowledge, helping fraud companies in their efforts to cheat retail investors ,by including wrong details in their official website without proper verification .TO SAVE REATILERS FROM THESE TYPE OF FRAUDS , STOCK EXCHANGES SHOULD  COLLECT HUGE  PENALTY FROM THESE TYPES OF FRAUD  COMPANIES.

SUKHJIT STARCH AND CHEMICALS - RESULT UPDATE

I have recommended  Sukhjit Starch and Chemicals HERE on 28th June 2010 @ Rs.169/-.Currently it is trading @ Rs.250/- Company has declared excellent June qtr result as follows :




                             JUNE QTR 2010        JUNE QTR 2009

TURNOVER           79 Cr                   58 Cr

NET PROFIT         8.5 Cr                     1.8 Cr


EPS                      Rs.11.6/-                  Rs.2.45 /-




One Can HOLD it for long term ,considering the improving  prospects of the industry and chances of a reduction in raw material cost going forward

DHP INDIA -BUY

DHP INDIA - Earlier this Kolkata based company was
engaged in Leasing and hire purchase business and later
ventured into the manufacturing of LPG  regulators, fittings
and assemblies. Now company stopped
its financial related activities and concentrating in this business.
Its manufacturing unit is located at Howrah in West Bengal with
an installed capacity of 1.5 million regulators per annum , from where
it producing propane, butane and LPG regulators, hose assemblies
and brass fittings .Recently company started its expansion project
to expand capacity by 50% which is funded through internal accruals.
Company’s products having big potential in a country like India with
huge population and less penetration in this segment.For the financial
year ended March 2010 company posted a turnover of Rs.18 Cr
and a net profit of Rs.2.3 Cr .On an equity base of  3 Cr ,company
posted an EPS of Rs.7.7 .Company also declared a dividend of 10% .
Expecting better performance from expanded capacity utilization one
can BUY at CMP of Rs.41/- for medium term

JK AGRIGENETICS -RESULT UPDATE

Below is the comparative figures with last year same qtr:

                             JUNE QTR 2010        JUNE QTR 2009

TURNOVER           95 Cr                    80 Cr

NET PROFIT         18 Cr                     15 Cr


EPS                    Rs.53/-                        Rs.43 /-






Company's year ending is in September ,For the nine months
ended June qtr company posted a profit of Rs.9 Cr v/s a LOSS of  7 Cr

KAVERI SEED COMPANY -RESULT UPDATE

KAVERI SEED COMPANY POSTED A TURNOVER OF RS.148 CR V/S 100 CR AND A NET PROFIT OF RS.31 CR V/S 23 CR. IN JUNE 2010 QTR.  NP IS HIGHER THAN LAST FULL YEAR FIGURE .BUY @ CMP 292/-

POLY MEDICURE - UPDATE

I have recommended a BUY on POLY MEDICURE @ Rs.130/- on 22 May ,2010 .Company declared decent numbers in June qtr with almost 100% rise in net profit.At Current Market Price of Rs.209/- ,one can HOLD it for long term gains.

OLD REPORT CAN BE ACCESSED HERE 

KAVERI SEED COMPANY - Repeat

I have recommended this company twice @ Rs.272/- and Rs.287/-.Currently it is quoting around Rs.300/-

Still I feels it is worth buy for long term investors ,hence earlier two write ups are re-produced below once again.
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KAVERI SEED COMPANY – is one of the very few pure

listed  Indian  companies from hybrid seed sector.

Others from this sector are JK Agrigenetics ,Rallis,and

Advanta . Apart from these  other listed firms are

affiliates of foreign players like,Monsanto, Bayer

..etc. Kaveri Seed is a well managed Secunderabad

based firm promoted by Mr.GV Bhaskar Rao in 1976.

Company has grown a lot after that and now it is one

of the largest hybrid seed producer from South

India .Its product portfolio include seeds of

Corn, Cotton, Sorghum, Pearl Millet ,rice ,sunflower

and a wide variety of vegetables.Company also producing

various types of micro nutrients, plant hormones ,

bio-stimulants for different crops.Kavari also

producing organic plant protector under the brand

name ‘FIRE’. Other than this, company has a lot of

organic products to enhance yield from crops.

Recently Kaveri started operations in its  state

of an art facility for cob drying, seed processing

and cold storage which established in its owned 

farmland of 29 Acres in Medak district of Andhra

Pradesh. It added Red gram, onion, mustard and wheat

to is portfolio recently . This pure Indian player has

a very energetic R & D wing and introducing new

verities which can give good result even in bad

conditions like draught. Now in southern states of India

like Tamilnadu,Andhra and Karnataka ,precision farming is

gaining momentum and it is experienced as a great success.

This method requires hybrid seeds and scientific methods

of farming which is expected to bring big business to Kaveri.

                        In the financial front ,Company

is growing steadily and posted a turnover of Rs. 169 Cr

and a net profit of Rs.29 Cr in last financial year.

EPS for FY 2010 is Rs.21.20/-. Backed by good monsoon

compared with last year ,Kaveri is expected to post even

better result in this year. Its business is seasonal

and 90% income generated in first qtr.Company has an

equity base of Rs.13.7 Cr and out of this 63% is held

by promoters and 26 % by big investors including mutual

funds .Even from a low floating stock, promoters are

again buying from open market. In nutshell, with a clean

and dedicated management and excellent R & D Wing Kaveri

Seed  is a company to reap the benefits which is expected

to emerge in Farming sector ,going forward.This one stop

company for hybrid seed ,organic fertilizer and organic

pesticide  is quoting around Rs.272/-

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I have received many queries from readers asking whether Kaveri Seed

Company is still a BUY after a  rise of RS.15/- from earlier

recommended price in just two days. Following are  some points

about the company :

 1)      The industry in which it operates have huge potential

        going forward

2)      There are only few listed players in this sector , and entry

      barrier is very high.

3)      Company having  a good ,aggressive and focussed management .

4)      It is growing steadily over past many years

5)       Its R & D is very strong  with 250 acres of land dedicated to

       R&D and  with State-of-the-art Bio-technology labs.

6)      Excluding promoter stake and shares held by large investors ,

      floating stock is just 10% of total equity

7)      Promoters bought shares in recent past from open market even

      at a price of Rs.290/-

8)  Kaveri is the cheapest stock available from this sector with

            a P/E of 13 (Monsanto - 28 ,Advanta 31 ,JK Agri in loss)
      9)  It is virtually a debt free company

     10)  Most importantly , Kaveri  is not a much publicized stock

            and many from investor  fraternity including analysts and
          

            business channels have  not celebrates it so far

The above are some of the points in favour of Kaveri Seed  ,

Considering the fact that its 90% income is coming from June

qtr alone and the result of this qtr is going to publish within few
days ,even at current price it is a

BUY and hold to grow with it  ,and not a stock to Buy today

and sell tomorrow or day after tomorrow. One negative

point is , Monsoon and  eather condition have great influence
in its business  and which can’t

be   controlled by anyone other than god.