This Pune based company is a 51% subsidiary of Cummins Inc of USA.It is one of the largest manufacturers of Diesel Engines in India .Company’s products are used in industries like Auto,Power Generation..etc.Company having manufacturing facilities to produce Diesel Engines with a capacity of 18 HP to 3500 HP.In fact ,Cummins is one of the biggest beneficiary of India’s power deficit which may continue for many years due to lack of proper policy decisions and uncertainties related with environmental clearance issues. Company currently commanding a 35 % market share of DG set business and they are now going to start the production of Low Horse Power Gensets in near future.This new facility is under implementation at Phaltan with a production capacity of 50,000 gen sets which will be commissioned in next one year.Honda Siel Power is currently dominating low HP genset market .With advanced technology and well accepted brand name , Cummins is expected to give tough competition to Honda going forward.Parent Company is paying maximum attention to develop business here and planning to make India as a production hub for their overseas demand too.Company is spending large amount for R&D and established a separate wing for this purpose only.Demand for other Industrial purpose engines are also expected to improve with a revival in over all economy.
Even in this tough business environment company reported
a 30% rise in its net profit for the latest March quarter.It is one good
company to be included in the core portfolio of long term investors @ CMP of
Rs.520/-
Thanks VP
ReplyDeleteSir wish you many many happy returns of the day....God bless you....Anand
ReplyDeleteValue Pick,
ReplyDeleteThanks for yet another recommendation. Wish you a very happy Birthday. Keep them coming :)
Sir,
ReplyDeleteYou haven't mentioned any vested interest. Does it mean you holding to recommending to your followers?
Its an excellent company and good goverance.
Certain stock in one's portfolio.
thnx
Dear VP,
ReplyDeleteAll your recommendtions in this blog are good value picks, but unfortunately most of the stocks have very thin volumes & any times these can be shifted to illiquid category. SEBI's rule of auction trading for illiquid stocks is like killing the patinet instead of curing the disease. Although these are all good value bets, investors should be really cautious of investing in these scripts. Do you have any idea if there is any pressure on SEBI to change this rule of auction trading? I believe even the Stock exchanges might have been hit due to lack of trading volumes. Some how these Indian markets are not favorable to investors these days. Small caps & mid caps where usually investors put their money are badly underperforming & on top of it SEBI's stupid rule of auction trading..only God can save investors in Indian markets!!!
Agree with you ,this is one of the big anti investor move initiated by SEBI in the past many years.But the most surprising thing is- even the BSE is not bothered about it and not protested so far.I believe they will realise the implication once more and more cos included in this list. Many investors are refrain from mid/small caps in these days only because of the possibility of inclusion in this method.Let us wait and see whether SEBI will consider at least some modifications in the criteria for selecting illiquid stocks in their next revision .
DeleteExactly and very find observation and also answer by VP. Let us see how SEBI will come out on this. Madhava Kumar
DeleteVP Sir, I have almost 20 shares of "TECPRO SYSTEMS" and few "TRF" shares with me. I saw your comment regarding Periodic call auction for TECPRO. Shall I hold it or sell it immediately. Please suggest
ReplyDeleteRegards,
Harsha
Dear Friend
DeleteBusiness of both these cos may improve with over all industrial growth of our country,regarding PCA -Wait till the next revision ,let us see whether SEBI is willing to change.
Sir,
ReplyDeleteYour comment on "Just Dial" IPO please. Is it worth applying for?
Thanks,
Sunil
Dear sir,
ReplyDeletewhat happened to VA Tech wabag, continues to fall, any special reason...
I think ,no special reason.
DeleteSir,
ReplyDeletewhat is your view on KALE Consultant like Buy or Hold.
Thanks,
Raj
Kale recommended just one year back @ Rs.126
Deletehttp://value-picks.blogspot.in/2012/07/kale-consultants-ltd-buy.html
which is currently trading @ Rs.462 ,one should at least take the cost plus reasonable profit at this level.
Sir,
ReplyDeletewhat is your view on La opala's after the result..
thanks,
Raj
Company is growing steadily ,HOLD
DeleteThank you sir.
DeleteVP Sir,
ReplyDeleteIt appears that Lactose India liquidity = zero.
A sell transaction gets cancelled automatically within seconds.
Is the light at the end of the tunnel permanently switched off for this counter?
This is the contribution of our SEBI to retail investors like us in the form of PCA.
DeleteWhat is your view on l&t finance
ReplyDeletePositive for long term
DeleteDear VP,
ReplyDeleteThis may have been asked before but please help me with this query. I would be grateful if you could suggest on what to do with Mangalam Cement. I bought 400 @ 151 and it is now trading at 118. Should I accumulate or sell?
Thank you,
Chitra
Company is expanding its capacity now .If you can wait till some revival in Infrastructure - Real Estate space ,HOlD it
Deletesir your views about PCS industries.. the kinda of money they are putting through preference allotment, shows the confidence patni group has in PCS, can we look to invest further. ive already invested at 17rps
ReplyDeleteAnd shares like vulcan engineer which are currently out of flavor in market.
Normally small and mid caps stocks are the favorite of retail investors and institutions are not interested in such stocks.Unfortunately after the introduction of Periodic Call Auction by SEBI ,retail investors are not showing any interest to invest even in quality stocks only because of this new system.Only time will tell whether SEBI will do something or people will gradually change..
ReplyDeleteDear VP,
ReplyDeleteI had posted a question about MRO-TEK, looks like you missed that question.
Regards,
Jay
NOt tracking MRO Tek
Deletesir what is your view on poly medicure , now ?
ReplyDeleteAlready turned as a multi bagger from initially recommended level ( 2 bonus issues) .Still a HOLD
ReplyDeleteCould you please share your view On SREI INFRASTRUCTURE FINANCE LTD
ReplyDeleteNot tracking SREI
Deletedo we need to buy Cummins now??? i bought @ 510
ReplyDeleteNo need to worry ,Hold it and add more in further dip (if any)
DeleteCould you please throw some light on brand house retail , the share has plummeted down from 15 levels to 2 despite co having a strong retail presense
ReplyDeleteAlready expressed my negative opinion on S Kumar's ( Kasliwal )group and not recommending any cos from this group even if it is available at any valuation.
DeleteDear VP Sir
ReplyDeleteEmpire Industry is giving high dividends.But it has become illiquid.What is your opinion?
Prashanth
I also feel stock like CUMMINS is must in good long term portfolio. As on date stock is with 8 Rs Dividend and if there is chance to add below 450 it is worth by all means.
ReplyDeleteDear Valuepick,
ReplyDeleteI would like to have your views about Nucleus Software.
Company has declared numbers for Quarter ending June 2013 and looks quite decent.
Management of Nucleus seems struggling to grow the company to the next level
Delete