Sunday, September 4, 2011

LOTUS CHOCOLATE - A POTENTIAL TAKE OVER TARGET





















Lotus Chocolate company is one of the very few listed players from Confectionery segment.This Hyderabad based company is jointly promoted by Mr. N Vijayaraghavan and well known southern film artist T Sharada in 1988.Lotus' manufacturing plant is located in Medak district of Andhra Pradesh with technical and consultancy support from Chocolate Confectionery Consultancy, U.K and Plantek (M) SDN BHD of Malaysia . Company producing various types of chocolates and related products for the retail sector and some cocoa based products  for bulk users.Even this company started commercial production in 1992 , it could not show any notable performance for a long time. Company changed hands more than once from the original promoters .In 2008 ,Hyderabad based ,Puzzolana Group took over this company .Currently company is selling its retail products in different brands - Chuckles ,Superr Carr, On & On,High 5,Kajoos,Gobble,Milky Punch,Maltys,Tango,Eclairs ..etc. Its industrial products includes Cocoa Mass,Cocoa Powder,Cocoa Butter,Chocolate Chocotreats ,Plain Chocopaste ,Ice Cream Coverings ,Drinking Chocolate Powder Chocolate Sauce and Chocolate Decoratives. Company's retail products are now selling only in south and central India due to limited marketing network. After a long time , now this company is showing some signs of improvement.Now company is planning to set up a pan India marketing network and increase its offerings by adding new brands.In the latest June quarter , Lotus posted  a turnover of Rs.14.60 Cr v/s Rs.9.75 Cr and a net profit of Rs22 Lac v/s a loss of Rs 54 lac.It is a fact that , there is some accumulated loss in its balance sheet.But ,Since  many MNC confectionery makers are planning to enter in India  ,with  a good manufacturing capacity and some existing brands - Lotus may turn as a take over target.After the open offer by the current promoters @ Rs.16/- , they bought its shares from open market even above Rs.40/- to further hike their stake.At current market price of Rs.26/- it is a scrip to watch.
Posted by VALUEPICK at 9:53 AM
Labels: , , , ,

13 comments :

  1. VikasSeptember 4, 2011 at 7:38 PM

    HI Valuepick,

    What is the reason behind Tasty Bite's bad June quarterly result?
    Can you please put some light on this?

    Regards,
    Vikas

    ReplyDelete
  2. VALUEPICKSeptember 4, 2011 at 9:25 PM

    Dear Vikas

    Higher vegetables prices and unfavorable exchange rate may be the reason for low margin.But the drop in sales is really strange.

    ReplyDelete
  3. SivaSeptember 4, 2011 at 11:22 PM

    Dear Valuepick,

    Can you please provide your view on Apollo Hospitals Enterprises?

    Thanks
    Siva

    ReplyDelete
  4. VikasSeptember 5, 2011 at 4:33 AM

    Hi Valuepick,

    Thanks for the reply.Shall i continue to add this scrip in this current dip.Looking for your advice on this ?

    Regards,
    Vikas

    ReplyDelete
  5. VALUEPICKSeptember 5, 2011 at 6:08 AM

    Dear Siva

    Apollo Hospital is a good BUY in any dip

    ReplyDelete
  6. VALUEPICKSeptember 5, 2011 at 6:09 AM

    Dear Vikas

    Add,if you have patience beyond one year

    ReplyDelete
  7. shaileshSeptember 5, 2011 at 3:16 PM

    Dear,

    Kindly guide as why some of ur recommendation are not being traded for a single share on a day or very less share like multibase, indag, kovai, sanco trans

    ReplyDelete
  8. VALUEPICKSeptember 5, 2011 at 6:08 PM

    Dear Shailesh

    I can't understand your question. Suppose you are a buyer in a particular scrip only @ Rs.10 and the seller is not ready to sell below Rs.12 , how a trade take place if both side is interested to get it traded only at the fixed price and not ready to compromise ?

    ReplyDelete
  9. shaileshSeptember 5, 2011 at 7:06 PM

    Thats right but no volume , does it suggest that there are shortage of share in market and there are less traders so there will be less movement. Like Kovai Medi it is on 115 for 3 days and I think 100 shares may have been traded

    ReplyDelete
  10. VALUEPICKSeptember 6, 2011 at 7:29 AM

    Dear Shailesh
    It can interpret in both ways.Buyers are not interested to buy at higher level and sellers are willing to offer at lower level.many of the stocks I mentioned here are only for investment purpose .Since there is no speculative interest in it , it is happening. I think , we should only look whether we are buying a good business with growth potential at an attractive rate.Volume will follow later if it grow as our expectation and more and more people attracted towards it.

    ReplyDelete
  11. shaileshSeptember 6, 2011 at 8:37 AM

    Thanks for ur reply and clarification. Can u say something on First source, Neha Int, Sujana Towers, vas infra and vertex. Thanks

    ReplyDelete
  12. AnonymousSeptember 6, 2011 at 8:30 PM

    SIR. I CAN SAY THAT THE BEST WAY TO MAKE A MONEY IS THAT BUY THE GOOD SCRIPT AT THE LOW PRICE DUE TO MARKET NEGATIVE TREND AND BUY IN VERY SMALL LOTS AT THE 10-15% INTERVALS.

    ReplyDelete
  13. ritchelApril 26, 2014 at 11:25 AM

    Thanks for sharing useful post. Appreciate your work.

    ReplyDelete

Subscribe to: Post Comments ( Atom )

Followers

Tweet TopOfBlogs