
During 1970’s and 80’s Indian Cutting tools industry was dominated by two multinational big daddies – Sandvik Asia and Widia India .In 1977 few technocrats resigned from Sandvik Asia and started this company . Rapicut’s manufacturing facility is located at Ankleshwar,Gujarat.Later company took over Gujarat Drillwell Private Limited and merged the same with Rapicut in 1993.Company producing various types of Tungsten Carbide products like . T.C. Buttons, Rings, Tips, Inserts, Flats, Bushes, Jute Eyelets, Solid Carbide Cutters,Tungsten Metal powder ..etc which finds applications in Mining,Metal Cutting and Engineering Industries. Company’s client list includes Neyveli Lignite Corporation,Mineral Exploration Corporation Limited , Steel Authority of India Limited ,Tata Iron & Steel Co. Limited ,BHEL ..etc .This small company showing steady growth over past many years .In latest quarter company reported good numbers .This time it is more important to note that this performance came at a time there is severe slow down in its user industries.I believe company now started to eat the market share of some biggies too.Rapicut is now expanding its manufacturing capacities and ready to move to the next growth orbit . For the past few months promoters are purchasing shares from open market which is another point to note.Company is managed by a decent management which showing their willingness to share the success with minority share holders. This small company raised their dividend payout ratio from 10 % to 30 % during last four years.For the last FY,company reported a sale of Rs.30 Cr , net profit of Rs.3 Cr and an EPS of Rs.14/-. In the first six months of this FY itself Rapicut posted a turnover of about Rs.20 Cr and a net profit of 2.15 Cr .Half year EPS is Rs.10/-. Company is expected to perform even better going forward with some revival in demand from user industries and stability in raw material price.Due to purchases by promoters and good performance in second quarter ,its share price appreciated recently and trading around Rs.86/- .This company having a tiny equity base of just Rs.2.15 Cr hence liquidity is low.Those with high risk appetite can add small lots at CMP and buy more if there is any dip below Rs.75/-. Steady growth ,good management,resilience during tough business environment ,decent dividend yield ,possible capacity expansion and increasing promoter confidence ..etc makes it an attractive micro cap stock, but only for brave hearts due to low liquidity.CMP is Rs.86/-
Link to Company website HERE
Link to latest Annual Report HERE
Discl: I am holding shares of Rapicut Carbides.
Hello Sir,
ReplyDeleteWhat is you view on following share.please let me know should i hold these or sell.
Shree ganesh jewellers bought @115 and Current cmp@120.
Fairfiled Atlas purchased @170
Tulip telecom bought @ 45
Oriental bell bought @85
Hold Fairfield and Orient Bell,not tracking the rest.
ReplyDeleteDear what is your view on india glycols.
Deleteare you tracking ador fontech?
ReplyDeleteNo
DeleteDear VP
ReplyDeleteOn Aug 15 2012 We discussed abt NEULAND LAB @116 ..u said Hold and my understanding of rising Promoter stake Q on Q hinted that something was on the cards ... now stock is at 180 ...... Also Promoters r still buying
Please put ur latest view .... If reports 10Rs EPS ...Stock shall rock .....
Hold it
DeleteDear Sir,
ReplyDeleteThanks for another good pick!
What do you think about IL&FS Investment Managers at the current price? What are the potential risks (realistically) that you foresee in investing in this company?
Hello VP Sir,
ReplyDeleteI hope you're enjoying the bull run!
I wanted to ask about Aarti Drugs. Is it a buy/hold/sell at this price? Why the company is not fancied as other pharma stocks despite being a consistent performer on business front?
Thank-you
Difficult to give a specific reason,but it is a fact that market is assigning only lower valuation for Aarti Group companies for past many years.
DeleteVP Sir,
ReplyDeleteYou are an inspiration to all of your followers. Every week coming up with ideas is rare. Your humbleness and desire to help others is unmatched.
If you don't mind me asking, what keeps you putting so much efforts and time in maintaining this blog and sharing information without any expectation? I am sure that you're very well educated but wondering did you receive any formal training in stock investing? (if not then again an inspiration on how a common person be a good investor)
Best wishes for your health and prosperity.
Krishna
Dear Mr Krishna
DeleteI clearly mentioned the reason and my stand on this subject as a comment to one Mr Rao ,behind the posting of Aditya Birla Chemicals.
Dear Valuepickji
ReplyDeleteCan you please give your opinion on Jb chemicals sept results.
Regards
Arpita
Satisfactory , hold it
DeleteDear Sir
ReplyDeletePidilite industries Sept results not as promising as its previous quarter. Can you please give your updates on it.
Thanks
Niraj Pathak
Hold it
DeleteValuepickji
ReplyDeleteHolding Multibase for two years. Still available at the same rate. Is there any change in fundamentals or any new developments going forward.
Niladri
Not much changes happened
Deletedear sir
ReplyDeletei am planning to buy indorama syenthis at CMP 26 what is view on this company shares..
regards
Thiyagu.
Not tracking this stock
DeleteHi Sir, what's your views on Ashiana Housing & Ybrant Digital, if you're tracking? Pls advise.
ReplyDeleteAlso, would u like to recommend any stock from Media/digital cable sector since digitization came in place in 4 metro cities so far.
Dear Mayur
DeleteI am not sure about the much talking impact of digitalisation on these cos.Hence so special opinion.One stock recommended earlier from Media Sector,Sri Adhikari Brothers @ Rs.27/- on the below link
http://value-picks.blogspot.in/2010/02/sri-adhikari-brothers-television.html
Sir,
ReplyDeleteIs it must for a every company to send it's annual report to every share holder.
Asking for an academic interest.
Mr. Sayyad
Sure
DeleteDear Sir,
ReplyDeleteThanks for the new scrip.
Excel crop care is booming up in a short span from 120 to 225 . Sir what is happening here ? Is it a company to watch?
Boby K P
Bangalore.
Already commented about this
DeleteWhat is the outlook for basant agro after its quarterly results.
Deleterakesh gupta
No change in previous stand .Seed business posted a growth over 25% in latest quarter.
DeleteSchneider Electric Infrastructure has declared its second quarter results. The comapny's Q2 net loss was at Rs 20 crore versus profit of Rs 7 crore, YoY.
ReplyDeleteThe comapny's net sales were down at Rs 260.8 crore versus Rs 302.8 crore, YoY.
Should we hold the stock or exit?????
Pl suggest.
Difficult times of power related sectors reflecting in it .Time is not enough to judge the new management and their strategies.Those having interest to take some risk and a long term view can still hold,otherwise exit.We can't rule out some developments other than mere numbers which may take it higher.
DeleteWhat's your view about coral lab.
ReplyDeleteA good Co. but very illiquid Stock. Both way difficulty i.e while buying and selling. Avoid!
ReplyDeleteClearly mentioned it is for High risk High profit type investors.
DeleteHello Sir,
ReplyDeletePlease provide your views on Fresenius Kabi. Is it good to enter at CMP 96?
Thanks,
Sunil
Dear Sunil
DeleteRecently commented on this stock,Use the search option above and help to avoid repetition to save time and effort.
VP Sir.. I am holding Themis at 108.. how has the company performed in last quarter? I'll hold my shares for long term.. but just curious to know its quarterly performance..
ReplyDeleteResult will be published only on 10 Nov.
DeleteDear VP sir
ReplyDeletePlease share your view on Claris lifesciences, Arvind industries and Subex? What are the targets?
At which price heritage foods may be under correction?
Dear Kiran
DeleteYou can use the search option to find posting or comment on a specific company if it is already mentioned.Claris and subex already there .As far as my understanding there is no company listed in the name of Arvind Industries either in NSE or BSE.
Regarding Heritage - who can give the correct answer ?
If you are referring about some technical terms, I have no idea about that and not believing in it .I am interested to know ,at what price a stock is worth for a buy.This may vary from person to person based on their risk profile and other parameters .In case of Heritage even at this price I AM positive.
Bravo ... convinced with your explanation.
DeleteDear vp sir,
ReplyDeleteIs it right to enter manali petrochemicals at current cmp?
Kindly explain in brief what is the exact meaning of rights issue?
Not tracking Manali
DeleteFresh Shares offered to the existing share holders only
Dear sir,
ReplyDeleteKidly give your views on your old postings: epc industries, psl technologies, milton, & suzlon to enter in current cmp?
EPC is good one for long term investment.No need to hurry in others.
DeleteSir
ReplyDeletePlease comment on the results of gpil sept quarter.
Pranab
Not very bad in tough conditions like this.
DeleteVPsir,
ReplyDeleteNamaste from Kailash.
first time writer on your blog.
Sir you mentioned you are positive on Heritage at this price at Rs.420 after a it has more than double.
On similar lines are you positive on GRANULES India at CMP?
Not sure why stock has corrected after excellent results.
Pls do share if you positive at current price.
Thank you sir and glad to visit your blog as we hardly find investment blogs which is a boon for small investors.
Most of the others are trading and speculative.
pls do mention and thank you.
Namaste.
I will not change my stand only due to price fluctuations if there is no negative news specifically affecting company fundamental.
DeleteThanks sir,
DeleteBut at current price can one enter?
Kailash.
VP sir,kindly give prospects of Grauer and weils?
ReplyDeleteNot tracking this stock
DeleteDear VP Sir,
ReplyDeleteWhy share price increase after giving bonus shares. Technically there is no value addition. How share holders benefit.?
My previous answer was a foolish one due to my overlooking and ignorance .Read below the opinion of an expert in this matter.
Delete
DeleteDear Mr.Value Pick,
Issue of bonus shares does not amount to fresh inflow of funds. The amounts under Reserves get transferred to capital account. Therefore, the question of utilising the funds again does not arise. Since the return of capital on the expanded capital base has to be maintained ( EPS, dividend), generally, it can be taken as a positive indication from the management and better growth projections. Normally, after issue of bonus, the share price falls due to fresh supply.
dear value pick any company in education sector you rcommend
ReplyDeleteNothing now.
DeleteDear VP,
ReplyDeleteWith reference to your recomendation on July 22 2010, Chaman Lal Setia Exports , Is now available at 32. From last 2 year the financial results are quite good with 15% growth in topline and 11% in bottom line, 1st half of FY 2012-2013 is also impressive. Company is paying divident regularly. Can you express your views on this after 2 year?
Satya
Not now ,let us see the impact of late monsoon in rice production.
DeleteSir..
ReplyDeleteSIMRAN Farms Dividend not yet credited. Did they disburse it to any. Do i need to contact Company Secretary?
Better to do that
DeleteEven I have not received yet.
DeleteDear sir
ReplyDeleteIf possible it is great for us if you maintain all companies by alphabet. Mean if i want any specific company by just clicking the starting letter i will get the information. Search option not looking good some companies are not coming in search even though those placed in the blog.
Just an advise
Done
DeleteI think you had enabled this option before but just for few hours or at max 1-2 days.
DeleteSir , thanks for ur valuable information, provided by you for us ,, now I want to now about lords chemical, wr promotor stake is increased from 42% to 70%. with shaare price coming down, companey sales and profit is increasing yr on yrr , pls share your view , so that I can chose good companies for investment , next tme. Thanks again for giveing ur valuable time.
ReplyDeleteNot sure about the quality of promoters.Anyway they didn't uploaded the Annual Report of last two years in BSE
DeleteCan I buy Kei Ind and PTC Finance @cmp for 2/3 yrs? Pls help.
ReplyDeleteNot tracking both
DeleteJust add to the above point,the search option give results only about your posts and does not include the comments and answers.
ReplyDeleteDear Sourabh
DeleteI don't think so
Dear VP,
ReplyDeleteFundamentally what change has occured in Heritage foods in the last two quarters .. has the retail business come to black?
Best Regards,
Shankar.
The most important point to note is ,contribution of value added milk products to the total income increased very sharply which will help the company to increase its margins substantially .If it grow like this company can even afford some loss in other sectors till some critical mass reached and report over all good numbers even there is loss in some verticals.
Deletelooks like we can enter even @cmp for future gains in Heritage food..u seems +ve even at this level, if m not wrong.
DeleteI live in Hyderabad and the biggest surprise to me was when I visited Heritage retail store yesterday and found they are selling Noodles packet like Maggi under heritage brand. :)
DeleteThough I bought heritage cookie which seems to be average in taste.
Amit
Company is selling atleast 100 products ,including salt , egg,Ice Cream,Mineral Water ..etc under heritage brand.For more details see the below link
Deletehttp://www.heritagefoods.co.in/products/
Dear valuepick Sequent Scientific has passed resolution on 2nd to allot 21,000,00 warrants to promoters. Why so frequently they are raising there stake and infusing money in company?
ReplyDeleteI believe it is a sign of good thing to come :)
Sir,
ReplyDeleteYour valuable inputs on LT Foods and Kohinoor Foods at the CMP?
Not much positive on rice exporting cos in short to medium term
DeleteHello VP,
ReplyDeleteWhat do you think about Kanchan International that you earlier use to follow? There has been decline in share price.
Neutral at present
DeleteDear sir,
ReplyDeleteKindly give your views on indian metals & ferro alloys ltd?
Not tracking
DeleteVP sir,
ReplyDeletefor some reasons my post is not showing up even though I had put message twice.
If possible, pls give your view on ADF foods?
Thanks
Hold
Deletethank you again :)
ReplyDeletebut if i may kindly request you even though i know u are a busy man to avoid holidays for recommending ur fundamental calls and post it on a week day any random time.
i request so because 1) early on a monday morning operators with big bucks enter and chances are they trap small capital investors
2) it will be interesting and rewarding for the early bird fan of yours like me
haz
Earlier it was on week days .At that time many of you complaint that you are not getting time to study the stock before acting on it and requested to change the time of posting to any market holiday ?
DeleteWhat's your view on ramky infra? Holding it for quiet some time now?
ReplyDeleteHi VP,
ReplyDeleteI had in one of your previous posts had asked about rapicut (must be a month ago) as i got into the stock at around 57/- after looking at the fundamentals and the dividend yield. Had asked with reference to dividend yield your opnion on rapicut and prima Nice to see that my investment is vindicated
Nelson
Any views on this stock now ... down significantly ..not sure if it has already adjusted for bonus but still doing badly...
ReplyDeleteAlready adjusted for a liberal Bonus
Delete