Wednesday, November 3, 2010


Asahi Songwon Colours Ltd is mid size Gujarat based 
company manufacturing different type of pigments .Company
having two manufacturing facilities one in Ahmedabad and
other in Baroda.Company’s product list includes Pigment Green-7 ,
CPC Beta Blue and Blue Crude.Recently company expanded its
capacity of all these products.Colouring
agents manufactured by company are used in industries like
printing inks,  paints,plastics, textiles,papers ,leather..etc.
Asahi also having a big presence in exports.Main raw material
of the company is crude derivative and a steady price trend
of the raw material is helping the company a lot in recentpast.
of the user industries are showing good growth and company’s
financial performance is also improving proportionately.
For the half year ended Sep 2010 ,Company posted a turnover
of Rs.88 Cr and a net profit of Rs.8.47 Cr .On an equity
base of Rs.12.2 Cr,half year EPS is about Rs.7/- Currently
it is trading at Rs.84/- with a P/E multiple of 5 on the expected full 
year EPS of Rs.16/.Benefits of the expansion plans will reflect from this FY 
onwards. One may BUY on decline for medium to long term.
Another group company's (Akasharchem) inconsistent performance is
the main reason for worry.


  1. Hi Valuepick ji,

    Happy Dipavali to you and all the blog readers
    ...!!! You have done great selfishless service to all the investor and GOD MAY SHOWER YOU WITH HIS ALMIGHTY BLESSINGS !!
    Can you give some advise on BANG OVERSEAS AND ANG INDUSTRIES if time permits . I know you must be running out of time for writting the reply and searching . If possible .

    Thanks in advance .

  2. Happy Diwali SIr, I am a great fan of urs..Please give me some information regarding Shree Ashthavinayak Cine Vision And Shri Laxmi Cotyson Ltd....

    Thanks & Regrds
    Balveer Singh

  3. Happy Diwali.
    Couple of points about ASCL.
    It has a financial collaboration with Asahi.
    Its order book is full for 3 years.
    It has announced expansion to doubla its capacity for one of the products.
    It has announced an interim Div of Rs 1 recently.

    Thanks, Regards,

  4. Dear Mahesh

    Business model of Bang Overseas is ordinary and not seeing any reason for a serious investment, may move based on operator play.ANG is expected to be a market performer

  5. Dear Mr Singh

    Shree Ashthavinayak run up a lot based on the expected success of the coming two movies.Seeing the trend of trading , I feels that there is something other than real investor interest happening there.Consider only if you are ready to take high degree of risk.Not tracking Shri Laxmi Cotyson Ltd.

  6. Hi Good Morning Value Pick,
    Thank lot for your timely advise to save me from BANG OVERSEAS and also ANG IND.Your advise
    is very timely.One more thing what you suggest on De Nora again and JYOTI both I have bought on your advise , ready hold for 2 years .Your few words are suffice for me. The TRUST in your ADVISE IS much HIGHER ,
    Any long term pick in MUHURT sir ji

    vakharia M J

  7. De nora posted an EPS of Rs.1.75/-in September qtr v/s loss in same period .Performance is gradually improving,HOLD it and JYOTI

  8. This comment has been removed by the author.

  9. Hi Valuepick ji,
    Happy Diwali . I am big fan of your value pick . Specially I made good profit in JK AGRIGENETICS .
    can you please give advise on HB Portfolio Ltd .

    At current price of around Rs. 42 market cap of HB Portfolio Ltd. is around 50 crores. As per annual report 2010 company has Cash & Bank Balances more that 14 crores(Precisely Rs 140643338) on consolidated balance sheet . You can access annual report from company's website.So effective market cap after reducing cash is 36 cr. Company does not have any debt .Can you imaging how much stocks and mutual fund unit this company hold ? As on 31st march 2010 value of stock portfolio is 185 cr (Rs 185,13,13,967) and mutual fund units of 10 crores (Rs 9,98,89,044) . Company is also having unquoted investment worth 39.29 crores (Rs 392897303) in associates companies at book value. For more details refer blog .

  10. Hello Sir,
    Can u please suggest what to avoid and what to add to my portfolio. i am planning to hold the shares for atleast 5 years.
    1. RIL Rs. 1040
    2.Mahindra satyam Rs.101
    3.NHPC Rs.30.80
    4.JSW Energy Rs.120
    5.IBPower Rs.29
    6.Bartronics Rs.108
    7.Harrison malayalam Rs.91.40
    8.MIC Electronics Rs.39.95
    9.Munjal showa Rs.66.45
    10.Electrosteel castings Rs.47.80
    11.TV 18 Rs.82
    12.Kohinoor foods Rs.63
    13.Cals Rs. 0.78

    Thanking you.


  11. Dear Prasad

    Out of the mentioned scrip, I am following only two,ie, JSW energy and Kohinoor food .JSW energy is a sure buy for me,but only for long term. Kohinoor food may HOLD at current level.I don't like the business model of India bulls group but not able to predict the price movement of their scrips due to many reasons .Regarding Harrison - In my opinion RPG group is the NO.1 anti-minority share holder friendly management , I never like to invest in companies from such management and even don't like to comment.

  12. Value sir,
    whats your take on Asahi with around 85-90 levels? The company has planned for expansion and seems like a good buy?

    do you still recommend to buy or hold?



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