Narmada Gelatine is a 50 year old company manufacturing pharma and food grade gelatine.Company started its operations as Leiner-Knit Gelatin Co in 1961 and now controlled by M R Chhabria led Jumbo group.Company is manufacturing Gelatine ,ossein and di-calcium phospate.In pharma sector , a major portion of gelatine is used for manufacturing the outer cover of capsules. Food and pharma grade gelatine consists about 60 % of the total gelatine consumption of the world .The main raw material of gelatine is the bone of animals.Because of pollution control concerns and difficulty to obtain raw materials capacity addition is very slow in this sector . On the other side demand is rapidly increasing from pharma and food sector.Narmada having a good client list and showing steady growth over the past few years. Company is a low debt one with too. It is expected to improve the cash flow in the coming years.For the FY 2011 , company posted a turnover of Rs.91 Cr and a net profit close to Rs.10 Cr .Full year EPS is Rs.23.50.Promoters holding in this company is 75 % and company is hiking the dividend payout every year in last four years.Earlier Jumbo group have some plans to sell this company when it was in trouble.But there is no updates in this matter in recent times. Even if it happens ,considering the strong position of the company big foreign players may also interested and may fetch better valuation .Currently it is trading around Rs.95/- at a P/E multiple of just 4 which is really a valuepick
Any idea who are its major clients and what percentage share they have in the gelatine market.
ReplyDeleteCapsules is generally unorganized sector and it is definitely not the number 1 or 2.
But the company does look great when looked at its balance sheet.
d u traCK NITTA GELATINE
ReplyDeletePLEASE COMMENT ON ADVANTA INDIA PROMOTERS
ReplyDeletei dont know if one should have any faith in this group of mannu chabria with shaw wallace mess.they have been unscrupulous in the past.they are good at duping public.
ReplyDeleteSIR MYSLF SUBHO..I AM NEW COMER IN STOCK MARKET.. HW U INVESTING UR STOCK? HW MANY POSITION OPEN AT A SIGL TIME?? HW MUH CAPITAL REQ? U JUST SUGGEST A GOOD POSITION STOCK... BT U NT PROVIDED WHN GOOD TIME TO EXIT DS STOCK? EVERY STOCK MAXIMUM HOLDING PERIOD? U JUST RECOMMENDED NT THERE PROPER TERGET N STOPLOSS?
ReplyDeletePLSSS SIR/ N ANYONE ANS MY QUESTN IMEDIATLY ITS HELPING FOR ME........................ UR FAITH FUL
SUBHO
Dear Value pick,
ReplyDeletePlease let us know your views on Riddhi Siddhi Gluco Biols. EPS is 147.64 and P/E today is 2.29. Looking at the product range and the bussiness of starch and starch derivatives company at CMP looks attractive.
Regards,
Satya
Riddhi Siddhi management decided to sell a major portion of their business, no clarity on the utilization of the amount realized from it .So not in a position to comment on it.
ReplyDeleteDear Sir,
ReplyDeleteHBJ Capital have done it again - picked up your recommendation and posted on their website.
Regards,
hai
ReplyDeletecould you throw some light or your perspective on the results of Rajvir industires.
Thanks
In the HBJ website, they have put up the below note.
ReplyDelete"Note: The stock discussed below through article posting is neither a part of “10in3” issue nor a “Value Pick” recommendation which we reco/publish for paid subscribers....."
This is as good as the saying "The pumpkin thief touched his shoulder."
Mahesh Joshi
DEAR VALUE
ReplyDeleteWHAT IS THE REASON BEHIND CHEAP VALUATION OF PAPER COMPANY eg.JK PAPER ETC.
YOURS, PATIDAR
Dear Mahesh
ReplyDelete:)
Dear valueji
ReplyDeletei didnt frankly understand the reply from mahesh,nor your animation in respond to it.could you please jot in a few lines which i can understand to whats happening,any way i am still waiting for your perspective on the results and the way forward,do reply
Dear ValuePick,
ReplyDeleteThere has been fall in your recom "Jubliant Industries". They have announced entry in "Mall cum Hypermarket". This is very bad business. You know that through your another recom heritage food retail business.
Do u still mainitain buy on currentely cahs rich(dont know about future:)) "Jubliant Industries"?
what about TCI developers.
ReplyDeleteTCI developers : Mkt cap->80 crore, debt->0, as per market talk TCI dev->current land is 200 crores.
Management is clearly said that they will develop real estate projects in these prime locations in cities and then will use cash flow for building warehouses/logistic parks.
1)TCI is big daddy of logistic sector which is related sector with warehousing
2)Warehousing is high margin business unlike Logistic(truck high depreciation, huge oil cost)
Ramanathanji, will TCI developers be great warehousing company in future and hence possble 100 multibagger in 10-15 years
Dear Fundainvest
ReplyDeleteIt was nothing related with your comment
Dear Valuepick,
ReplyDeleteAny view you hold on Andhra Petro?
-Yuvaraj.