Wednesday, October 27, 2010


Earlier Recommended @ Rs.48/-

In a country like India with huge population and increasing
disposable income , scope of companies from food processing
sector is very vast,especially those with good brands.But,
unfortunately many such brands are owned by unlisted
players or high priced MNC’s . Only very few companies
developed niche market and established their own brands
and growing handsomely. DFM Foods is one of such company
which is a dominant regional market player in snacks foods
sector. DFM is promoted by Delhi Flour Mills and had two
divisions till last year – Wheat storage Business and Snack
Foods Business. From last year onwards DFM discontinued
the low margin wheat storage business and now concentrating
only in snack foods division.Its brands  CRAX,NATKHAT,
WIZZ ..etc are popular in northern part of India.Last year
company expanded its capacity at a cost of Rs.13 Crore and
due to huge demand for its products now again planning to
expand the capacity further. Company is also taking steps to
make it a Pan India brand in few years from now.In last
financial year DFM’s snack foods division shows a growth
of 35% in turnover(Total turnover was less due to
discontinuation of wheat storage business).Net profit also
sharply improved from Rs.1.99 Cr to Rs.4.21 Cr backed by
better margins from snack foods division. In the first
qtr of this financial year(June qtr) company shows an increase
of 50% in its sales from Rs.13 Cr to Rs.20 Cr .With increasing
urbanization and changing life styles,demand for snacks
foods are expected to rise sharply and on the other side the
expected record production of wheat will reduce the pressure
of raw material cost which will help the company to record
better performance going forward. Earlier, company had an
image of a wheat trader and enjoyed only low valuation due
to the image of a trading company. But now it is a pure
FMCG/food processing like play and it should be re-rated
accordingly. There is good scope for appreciation from
current level of Rs.54/- 


  1. Dear Valuepick,

    Can you please share your view on Reliance Mediaworks. since 2 years it is available on very cheap price. ADAG have 66% of share with them and it is available at only 1200cr market value. do u think it will be a multibagger in coming years? your view will be highly appreciated.

  2. dear value ji

    one value pick at cmp , the probable multibaggar from your angle or point of view?

    please give one solid pick

  3. Not tracking R media works,but not thinking ADAG is no more a catching word in stock market

  4. What a call Sir Ji. I had planned to buy it today after seeing ur update yesterday nite. But today mng it is at UC fm 56-69 /-. Feeling sad that missed it. Sir . would u advise buying now that it haS RUN UP SHARPLY or wait for it to cool dn & buy on dips.
    Thanks. Manish...

  5. sir i was about to buy it today morning... but it shoots up with upper circuit ... what should i do.. i have bought jenburkt also at around 85

  6. I also missed the oppurtunity.....In my portfolio, I have Superhouse, Salona Cotspin, Kennametal, Kilpest India (small amount as advised), Kaveri Seed,De-Nora, Jagatjit Industry and Jenburkt Pharma....Of which Jagatjit and kennametal bought on your repeat call....Thanks to you again....Also please let me know if I can enter DFM Food at this level

  7. It is my personal advice not to enter now at DFM . It has already shooted from 47-48 to 76 (UP) in few days. Let it get settled down around 65 and then we can make entry for next tgt.

    Make your own decision.




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