The present form of EON ELECTRIC is the result of two
de-mergers during past two years. This company (formerly known as INDO ASIAN
FUSEGEAR) sold its Switch Gear business to French electric equipment maker
Legrand for a consideration close to Rs.500 Cr in 2010.Later in 2011 ,company
de-merged its metering business into another company named Advance Metering Technology.After both of these
transactions company is left with lighting products, wires and wiring accessories , cables and Fan.Now
company is concentrating its efforts to develop many new energy efficient
products in these categories.LED lighting products is one among them . Since LED
is not using any hazardous materials like mercury it is
expected to get consumers priority over CFL
in coming years .For getting advanced
technology in this field ,EON already tied-up with one Japanese and another
European company operating in this field.Recently company ventured into home
automation products with the introduction of modular switches .Company’s R
& D division introduced indigenously developed presence sensor technology
based lighting accessories to save
energy.Recently company started production of Lithium Ion Batteries from its
newly set up plant in Haridwar. Company is claiming this is the first such manufacturing
facility in India to produce Lithium Ion batteries to be used in mobile
handsets, laptops, cameras, tablets ..etc which is still now imported from
China.Company is expecting to garner reasonable market share in this products
based on superior quality over cheap Chinese products.
Even the company not started to show black in its bottom line after
the selling of its Switch Gear division
and de- merging of metering business,
sharp improvement is visible in its turnover and reduction in loss in recent times ( See Table below)
Out of the total amount received from the selling of Switch Gear division, company distributed Rs.10/- per share as special dividend,came out with a buy back program at a maximum price of Rs.130/- per share and most importantly paid back majority of its debt.After the scheme of later de-merger ,on a rough estimate company is still with a cash balance over Rs.100 Cr where the market capitalisation of this company is is just Rs.48 Cr . I believe the well knitted marketing network and well experienced promoters are two big positive factors for this company .EON having enough cash to utilise the available opportunities and the company is already started its capex .I am expecting the company can back to black in another few quarters and at current market price of Rs.30/- it is worth for a bet for investors with some risk appetite.Stock is listed both in NSE and BSE.
Out of the total amount received from the selling of Switch Gear division, company distributed Rs.10/- per share as special dividend,came out with a buy back program at a maximum price of Rs.130/- per share and most importantly paid back majority of its debt.After the scheme of later de-merger ,on a rough estimate company is still with a cash balance over Rs.100 Cr where the market capitalisation of this company is is just Rs.48 Cr . I believe the well knitted marketing network and well experienced promoters are two big positive factors for this company .EON having enough cash to utilise the available opportunities and the company is already started its capex .I am expecting the company can back to black in another few quarters and at current market price of Rs.30/- it is worth for a bet for investors with some risk appetite.Stock is listed both in NSE and BSE.
Link to Company website HERE
Link for latest Annual Report HERE
Sir,
ReplyDeleteIs ABG infralogistics a buy at current market prize.how the kandla port issue will affect its financials
Not advising for a buy mainly due to the mentioned reason.
DeleteSir,
ReplyDeleteWhat do you think about Vinyl Chemicals?
Not tracking
DeleteThis is called "damdaar" stock. working on future technology this company can be a multibagger in time to come . Very good pick sir.
ReplyDeletePls don't post such messages. what happens if this stock is not a multibagger? Just because its a low price stock?
DeletePls post some details on why you think and if you have such knowledge then you shoould have bot it long time back. Piggy backing on someone and giving such statements don't make sense.
this is in the interest of small investors.
Saket
Dear Saket
Deletekindly think before u post anything. Can u point me where hv i mentioned that eon is my research . u cannot say that i m piggy banking on value picks sir.
'i hv expressed my own views. I think it ll be a multibagger if u don't don't buy. Nobody is recommending u.
Book value is 200+
ReplyDeleteHi Sir,
ReplyDeleteyour valuable input on Gujarat Narmada Valley Fertilizers (GNFC) at the current price?
Not tracking it.
Deletesimilar company wit this LED technology MIC electronics failed .what it is due to?
ReplyDeleteLED lighting is only a part of their plans and it is not a company based only on these products.Even the business model of both these cos are entirely different where MIC was in LED based display boards ..etc and in institutional business ,EON is looking for LED based lighting systems for
ReplyDeleteretail business.Many factors other than business related may have diverted the attention of MIC .A small sample in the below link :
http://www.dnaindia.com/money/report_mic-electronics-chief-under-police-scanner_1715868
EPC Industries is under T group for quite a long period. Any specific reason for this? Promoters are are also seemingly not bothered. Would like have your view on this aspect.
ReplyDeleteBEST Regards.
Why promoters need to bothered about the group ?.I don't understand why people think like this .If it is about 'Z' group there may be some concern,otherwise what is the problem for investors ,only traders need to bother about that .What is fundamentally changing in the business of a company according to the group changes in an exchange where it is listed ?
DeleteSir,
ReplyDeleteHow do you get into a stock? First do you see results, new business ,promoter fame ,entry of celebrity investors or any ratios ? :)
You are extremely good at finding one.Your width of reading is reflected in the posts and comments.Thank you so much for all the help.
-vivek
First is nothing from the above list,but the potential of the industry .
DeleteDear VP Sir,
ReplyDeleteI read few earlier messages on HSIL and few months back you indicated not tracking and recently you mentioned about buying on dips. Sir wanted to check if there was any change in fundamental which indicated you to be bullish on it.
I am holding and would like to avg if that's the case as I don't want to get struck in non performing stock as I was not able to understand the reason of its fall.
Pls do respond sir as it will help me to take decision.
Thanks sir.
Shashi
Now I believe the user industry has bottomed out and expecting gradual improvement backed by softening interest rate going forward.
DeleteI guess Piramal was valued and sold close to thrice is annual sales coorect?Current year expectd sales is 100 crores for span and its current market cap is 36 cr.
ReplyDeleteSo considering good managements,plans for growth its a good bet at current levels?
Hi Sir
ReplyDeleteRequest you to please comment on these stocks-
himalaya international
REI agro
Gujarat ambuja exports
Hanung Toys
Greenply
Thanks for all your research and guidance.
-Gaurav
Even the products of Himalaya having potential , I am not sure about the integrity of promoters.Not tracking the rest.
DeleteI'd blogged about this earlier but due to unrelated diversification and cash burn, had felt its risky. Would like your inputs on this(admittedly pre FY12 results..still)
ReplyDeletehttp://specialsituationsindia.blogspot.in/2011/11/eon-electric-trading-at-14th-of-its.html
Dear Anandh
DeleteSome of your points are relevant and some others like website updation are already met.(Company created a new website and updating it periodically but still the name of old website is provided in BSE).In my opinion key factor for success is effective use of surplus cash and in a recent communication they mentioned that the surplus amount will be utilised as and when good opportunities arise.I don't think the recent diversification is totally into an unrelated field.What you said is right- there is some risk but I feels the current market price is very low while we consider even only the cash component .I believe if promoters have no plans to loot this money and they are committed to invest the same in this company itself there is chances for improvement ,hence suggested it.
Dear Valuepick,
ReplyDeleteWhile recommending Aditya Birla Chemicals, you advised the readers to follow the pricing of the end product. Could you kindly advise, where can we track the same.
Thank you,
Vijay
Dear Vijay
DeleteThere may not be a single point to get such data .But if you have some academic interest to know anything there will be some ways like below:
http://www.ihs.com/news-analysis/chemical/index.aspx
Dear VP,
ReplyDeleteKale Solutions is hitting upper circuit everyday for quite a long time. Probably I missed the trick as I sold it at 200 after buying at your recommended price.
Where does it go from here, only north? and how long?
Regards
Sakharam
sirji
ReplyDeleteyour valuable opinion on A2Z maintenance
Rgd
BRK
Not much excited
DeleteDear VP, Whats ur view on Marksans Pharma?
ReplyDeleteHi VP,
ReplyDeleteCan you give idea about
1. Omkar Speciality Chemicals
2. Claris Life Science
3. Thangamayil Jewelleries
4. Atul Auto
Thanks
Already covered Claris and Atul Auto and no change in previous opinion on that ,not tracking the rest.
DeleteHi Sir..
ReplyDeleteHave a peaceful Weekend..
Whats ur views abt 20 Microns, Thinksoft, Mayur Uniquot..?
Regards Aman
Sir
ReplyDeleteStill awaiting your views on Cenlub industries that you recommended a long time ago....
Hold 20 Microns,not tracking the rest
ReplyDeleteHi Sir,
ReplyDeleteHow do you find Country Club at this price? How is the management?
Based on available information company's service quality is poor .I don't think companies in a sector like this can grow without a good public opinion beyond certain extent .So no opinion for investment, but remember price of any stock may move reasons beyond fundamentals in a bullish market .In this case political link is also there.
DeleteHi Valuepick,
ReplyDeleteWht is your thoughts on the Government's new 5% ethanol blending policy impact on Sugar companies like Shree Renuka and Bajaj Hindustan?
Regards,
Vikas
Sourcing price is key.
DeleteSir,
ReplyDeleteYour view on Aurobindo Pharma? After the sept results do you think one can buy on dips for longer term?
The stock has moved well and consolidating and wanted to know your views on business prospects.
Thank you sir,
Amit
Buy on dip.
DeleteDear VP sir,
ReplyDeleteWhat is your view on CAPLIN POINT LAB?
Thanks
Not tracking
Deletei tried to buy eon today in my SHARE KHAN account.. but its not getting executed at all. Can anyone please tell me whats wrong
ReplyDeleteDear VP...Any suggestion for Gateway Distiparks or Arshiya International or any counter on the logistic space on a long term i.e 2-3 years horizon
ReplyDeleteRegards
Anirudh Banerjee
Not tracking GDL , Arshiya is not a bad choice for longer term.
DeleteHi VP,
ReplyDeleteI remember you have recommedned claris lifescience. Now I am hearing that they are selling their injectible business which is their key growth business. Assuming they are selling their injectible business, do you think it is better to sell this stock.
Regards
Amit
Not to speculate on rumors.
DeleteI agree that it is not confirmed news from company, but if the news comes in Economic times, then it can be trusted. See the link below
Deletehttp://economictimes.indiatimes.com/news/news-by-industry/healthcare/biotech/pharmaceuticals/claris-lifesciences-in-talks-with-otsuka-pharma-to-sell-injectables-business-sources/articleshow/17370020.cms
Please share your view based on above link.
Regards
Amit
If it happens I don't think it is a good news provided there is no immediate plans to utilise sale proceeds to expand cos business.
DeleteHello Sir
ReplyDeletewhats your view on Amtek Auto
the stock once again touched its 52 week low.
I was thinking to invest in this stock.
any idea, please share.
thanks A lot.
Not tracking Amtek Auto
DeleteVp sir,
ReplyDeleteCould you suggest some stock from oil exploration sector.would love to hear about cairn india.
Aksh parses
bhopal
Selan and Cairn already posted,use the above search option
DeleteCan you provide an insight on KEI?
ReplyDeleteNot tracking
DeleteHi sir, what is your take on Bajaj Electicals - well diversified company at current valuation?
ReplyDeleteBuy on Dip
DeleteSir
ReplyDeleteWhat is your view on hydrebad industries ltd
Regards
Vinay
Hold
Deletevp sir,
ReplyDeletehello! what is going wrong with opto circuits?this stock had always given good returns but this year things have been quite different.Is the working capital condition so bad that it has come to such low levels? another stock sah petroleums is in my review recently .do u think it is worth buying?
As you are aware there is still some confusion about its accounting policies and no clarity on stake dilution of its subsidiaries.Institutions normally offload their holdings in such situations and it was a stock with high institutional interest .This may be a rason.
DeleteVp ji,
ReplyDeleteAny change of views on Themis medicare? Please reply.
Manmohan garg
It mentioned for long term buy @ Rs.94 which is now @ Rs.105.No change in previous view
ReplyDeleteThanks for reply.
DeleteManmohan garg
Does your view posted earlier on Selan holds good now?
ReplyDeleteYes
Deletevp sir,
ReplyDeletemay i know the reason for all in hritage food.acually planing to add more.
waiting for your precious replay
nilans ramkumar
It think it is just because of the inclusion of Heritage in 'T' Group.I like very much its business model and expecting better future on more than one reason.Take any dip as a buying opportunity and HOLD for long term.
DeleteSir, your thoughts on Bajaj Electricals at cmp - 200?
ReplyDeleteNot tracking
Deletehello sir please share your views on PTC India Financial Services for 1-2 years horizon
ReplyDeleteNot tracking
DeleteSir...
ReplyDeleteHearing a lot of news on SHALE gas and fracking boom. Guar gum prices are soaring due to this and VIKAS WSP is a direct beneficiary of the same. I request you to provide me with some insights on this. On the other side of the coin,promoters are not reliable.
Also need you to let us know your views on NDTV and TV18 .. lot of buzz due to mandatory digitization. Do you think that this is going to be a game changer for them???
Not dare to recommend this stock mainly due to poor promoter quality .An interesting read on this subject in the below link
Deletehttp://www.mydigitalfc.com/commodities/guar-gum-exports-set-drop-150
VP,
ReplyDeleteI could see Eon posted a net loss this quarter. Do you still recommend us to buy this stock. Your valuable feedback would be useful for my investment.
Thanks,
Palani.
Sir,
ReplyDeleteKindly let me know your views on narmada gelatin
Madhu Shanker
Hold
DeleteSir,
ReplyDeleteYour view on Zylog Systems,is it worth taking a bet at CMP of 75?
Thanks,
Ajit
Mo opinion about it
DeleteSir
ReplyDeleteWhat is your view on caplin point laboratories ltd?
Regards
Anand
Not tracking
DeleteHello VP
ReplyDeleteI would like to know your views on Brand House retail, do you see it as a beneficiary of FDI in retail where most of the large funds are betting on pantaloon,shoppers stop can this be a potential multibagger? Also do you track Tijaria PolyPipes?
Not interested in any company from S Kumar's group
Deletesir, i bought simran farms reading your posts recently and as you mentioned in a later post that simran farms may dip because of high raw material cost, i sold a major portion and now wants to accumulate again. Please let me know whether it is the right time and price to accumulate simran farms.
ReplyDeleteLots of thanks for your pick Vadilal Industries, in which i was able to gain good profits.
The same issue may affect one more quarter based on the current trend in feed price.Try below Rs.20,if ready to hold for long term
DeleteDear sir, Can we suggest buy in following w.r.t. long term view ?
ReplyDeletea. timex
b. sacheta
c. gei
d. yuken.
Thnaks as always. Hope i may have some reply.
Avoid Timex and Sacheta for the time being .GEI run up recently so buy only in a dip and only for long term.Yuken may buy in small lots.
DeleteDear VPji, saw ur comments that Positive on National Peroxide, however, would likr to know is it still worth buy at current valutions 495? or should i wait for some correction. Pls. advise.
ReplyDeleteReason behind asking you is that I'm very weak at finding the correct valution of company (technically). Could you also throw some light/guide us to how to look at the parameters contributing in finding the valution of any company.
Thanks again sir for great work.
Neutral at CMP
Deletedear value
ReplyDeletewhat are the reason for not running of agri stocks? keep investment in tata chem, coromandal int, gnfc, rallis, basanth, aries etc.?
PATIDAR
Lack of a concrete subsidy policy of government ,effect of late monsoon,unfavorable rupee movement ..etc may eat the profitability of some of these companies in this FY
DeleteLeave Timex and Sacheta for the time being ,rest only for long term
ReplyDeleteHi Valuepick,
ReplyDeleteDo u see any stock re-rating happening in Sequent Scientific, due to rumors of Pfizer buying out Agila unit of Strides Arcolab?
Regards,
Vikas
Not to speculate on rumors , but it is a definite HOLD for me
DeleteDear VP,
ReplyDeleteRequest your opinion on JK Agrigenitics
Sir, does it still makes sense to buy KAVERI SEED company at CMP?
ReplyDeleteThis stock recommended below Rs.300 which is now @ Rs.1300/-.It is a great company but at CMP a HOLD for me.
DeleteDear VPji,
ReplyDeleteAny idea on NHC Foods (517554) @ 50. its a old company.
Your comments on same will be appreciable.
Regards,
Aajay
I think its old name is Mid point Software ,not tracking it.
DeleteRequest your views on Confidence Petroleum, in case you are tracking it. If not, then do you have any views abt it or the sector in which it oprates (i.e. LPG Bottling and manufacture & sale of Cylinders) positive or negative, whichever way.
ReplyDeleteThank You Sir.
Manish...
Only one I am tracking from this sector is Eastern Gas and mentioned about the same earlier.
DeleteSirji
ReplyDeletePls put your valuable comment on Everest Kanto
BRK
High risk BUY
DeleteVPji,
ReplyDeleteany view on savita oil...am holding big quantity from 460 levels?
amit
Good company ,but profitability is very sensitive to raw material cost.Track the trend of crude price too.
DeleteHi VP,
ReplyDeleteI am very new to this forum and went thru ur archieved blogs too...I am in market for few years now and lost and learnt all the while. Now having no portfolio and thinking to build it as an investor(long term)...Can you suggest the trick...like sector allocation %age, %age of case should be kept reserved, portfolio should have only value picks,high beta or bluechips...is mixed what should be %age, When to book profit, do we have shares for short term prospective too etc???
I know its all basic stuffs and I am supposed to know but sorry to say I am not clear on these even now.....
Your opinion would be helpful to understand.
Thank you in advance!
Frankly speaking I don't know how to answer for this.
DeleteWhat is your view on Ashok Leyland?
ReplyDeleteNot tracking Ashok Leyland,prefer SML and Force from this space.
Deletesir ,
ReplyDeletevp ji. what are your views on kohinoor foods.could you share about there promoter quality and huge debt.
k gupta
Not tracking
DeleteHello Sir
ReplyDeleteI am not a regular reader of your blog:)
Please help me out in following:
1.) Just to inform you, I am holding tight Rossell India and wont sell anytime soon since their hospitality Kebab Outlets have been started. Any other info about Rossell India.? Please share.
2.) I saw that your earlier reconmmendation Hi Tech Gears is trading at 52 week low despite of not that bad 2nd quarter results. Was thinking to buy in bulk since company seems to be going good. Do you still recommend investing in Hi Tech Gears..?
3.) The last question is about the rail stocks like Kalindee Rail Nirman, Titagorh Wagons, Kernex Microsystems etc.The general trend is that the rail stocks start rallying from start of december due to rail budget being near. I was thinking of buying rail stocks based on this. But I would like to have your specific recommendation in rail sector based on strong fundamentals. Please help me to get rail related stocks:)
Hope you dont mind sharing line or two about all three questions.
Wishing you good health.:)
Thanks
1) Rosell is planning to open 10 each outlets in next three years.
Delete2)Re rating of auto ancillary companies may take some more time.
3)Not tracking any of the mentioned companies
Sir Please let me know your current views on Cenlub Industries... you recommended this long time back!!!!
ReplyDeleteHello VP,
ReplyDeleteDo you like anything from media and entertainment, Auto and indian comsumption space at CMP?
Best Regards/Ravish
Do you track cox & kings, what's your view for long term? Also i am stuck in glodyne technosoft, is there any chance the shares would be back to levels of even 80?
ReplyDeleteSir waiting for your reply on above question?
ReplyDeleteNot tracking Cox and Kings
DeleteDear VP Sir ,
ReplyDeleteCan you pls share your views on ;
1, Alok Ind at present level
2. Educomp at CMP
3. Dishman Pharma
Thanks,
Abhik
Dear VP,
ReplyDeleteI came across your blog while searching information on EON Electric and i can see that you have compiled lot of useful information on this blog. I am bookmarking this page and will keep visiting to this page in future.
Now coming to subject, i purchased shares of EON Electric in the year 2012 at about Rs. 38 per share. after my investment the share price fell heavly, however i kept holding the same. i needed your current/future outlook of this stock, i dont mind holding them for another 5 to 10 years if you feel it is worth holding the same,
Please guide.
Regards, Amit