Reduction in the subsidy on LPG and rationing of the subsidized LPG Cylinders for consumers will be a reality in near future.Talk on this subject is already on and it may take shape eventually.Who will benefit from such a scenario - no doubt it is private LPG distributors. When the difference of the cost of LPG cylinders distributed by PSU's and private players become nil or negligible Private LPG distributors will get a chance to compete with PSU's and increase their market share. When we look into the investment angle of this possible changes , we have not much choices left .Only very few private LPG distributors are available in listed space. EASTERN GAS - is one such company from Kolkatta which is not very popular for investor fraternity till now.Eastern gas is currently concentrating in distributing commercial Cylinder under the brand name ' EAST GAS' in Kolkata and nearby areas. It is distributing LPG in 17 and 33 kg commercial cylinders .Since the subsidy is very huge for non commercial cylinders, at present it is not viable to distribute home cylinders in a big way .But the situation will change when there is a reduction in subsidy as mentioned above. Company having a 30,000 MT / month LPG refilling plant at Durpagur.Eastern Gas also having a marketing agreement with Indian Oil Petronas Private Limited. Company is also in Auto LPG Segment and planning to start 100 auto LPG filling stations in few years.It also having plans to start joint ventures for city gas distribution . All together , policy changes in this sector is expected to change in favor of Private LPG distributors. Number of listed companies from this space is very few . Hence , once there is some clarity emerges in this sector, first comers with necessary infrastructure will benefit a lot and in such a situation Easter Gas may turn as a dark horse .For the last financial year Eastern Gas posted a turnover of Rs.90 Cr v/s Rs.63 Cr and a net profit of Rs.1 Cr v/s 63 Lac. At CMP of Rs.18/ - nothing to loose .
Hi value pick,
ReplyDeletecan you name other players in this field?I kow shri shakti LPG.
siva kumar
Hi Valuepick,
ReplyDeletewhat will be your views and opinion on Kirloskar Brokers at 163 and elecon at 77 do you think its a value pick for long term.
Which one you prefer out of these two.
Warm Regards,
Yash.
Gujarat Gas is the main listed player.Shri Shakthi's operation in LPG distribution is now only for name sake and they are claiming that in power and infra space now
ReplyDeletePrefer Kirloskar Brothers
ReplyDeleteHi Valuepick,
ReplyDeleteWhat is ur thought on P.I.Industries ? Request for your advice on the same?
Regards,
Vikas
Dear Vikas
ReplyDeleteP I Ind is a good company .But there was a sharp run up in its share price in recent past .BUY on dip.
Hi valuepick
ReplyDeleteIs ashahi sonwong still a value buy or has it run up too much
and wht sld ido with abuy of 123
sld i wait till27th (june 2011 results)
also have repro
does anu labs present a value buy at 3 rs itsm cap is 73 which is its profits for the pst 4 years and its
ReplyDeletedear sir,
ReplyDeleteshall i invest in jkagri and kaveri seed now
kailash
I have recommended Asahi Colour @ Rs.84 , @ Rs. 123 it is not a Buy for me - only a HOLD
ReplyDeleteI am skeptical about the management of Anu's Lab
ReplyDeleteDear Kailash
ReplyDeleteBoth these cos moved about 100 % from my first recommendation . At CMP , both are hold
dear sir,
ReplyDeleteis aries agro a buy at this level...pl comment
Hi Valuepick,
ReplyDeleteYour previous investment i.e International travel house has been recommended by a Equity research Company today to their clients. I dont know, but quite many of your recommendations are being advised by them at a later point of time or in some cases may be before that...Can you tell me how does this whole networking work??
Dear Amit
ReplyDeleteIt may be a coincidence .It is very difficult to find a scrip which is not recommended by another person at some point of time , I think not the recommendation but the reasoning is more important.
I completely agree with Valuepick..because there are only countable companies listed not endless where one will see new picks all the time. So if we see the data some of the companies mighthave been recommended. But as valuepick said most imp is reasoning thats the big thing analysis is something which can give numbers but reasoning gives life to analysis.
ReplyDeleteAnd reasoning is what is tough to make..and as far as i go am a complete failure in this so Valuepick I thank you for all the efforts. You are a great help to small investors.
God bless you.
Regards,
Yash
Hi Valuepick,
ReplyDeleteGEI Industrial around 170 as I came to this blog late so missed your old buys..what is your advice can one still buy it for long term.
Thanks.
Yash
Yes GEI is a good BUY , but only for long term
ReplyDeleteDear Sir,
ReplyDeleteI am holding 500 shares of lakshmi energy and food bought @75 8 months back and price since then has been going down. I read contradictory reports about this company. would like to request your opinion pls.
Thanks,
dear sir,
ReplyDeletepl opine on parekh aluminex.
Dear sirji
ReplyDeleterajvir is going down day by day because of the lul in spinning industries,whats your advice,
i plan to average around 110 to 120 since my buy price is 170,would you advice or you say wait.
please revert
valuji
ReplyDeleteyour advice will help and your take on nile also
What do you think about Cadila healthcare and Zydus wellness,are they good buys after the recent correction?
ReplyDeleteDear Sona
ReplyDeleteSince I am not tracking Lakshmi Energy , not in a position to comment on it.
There is some negatives for spinning industry now,just wait .Hold Nile - if you have a long term view
ReplyDeleteBUY Cadila , HOLD Zydus wellness
ReplyDeleteValue ji
ReplyDeleteyou are right,its better to wait,but shall be definetly buying in case it comes below 100,as ifeel it is too good a price to be ignored.
i do have nile,bought below 100 abd shall be selling it around 500 or so.with the increased tonnage capacity and good lead prices and good cash( got from the sale of glass lining equipments) i expect an EPS of 80 or so and with a 6 P/E it should fetch atleast 500 as fair value
its in upper circuit continuosly
fantastic result net profit of 42 crores in comparison to 26 crore in the same quarter last year
ReplyDelete