Textile Valuepick ..... Damodar Industries Ltd

 Today I am expressing my view on textile company safe and compounding one....Damodar Industries Ltd.

Company

The company was incorporated on 11th December 1987 as a private ltd. company to manufacture synthetic blended yarns. The company was converted into public limited company on 20th March 1992. Since 1992 the company has expanded its production capacity and is now one of the largest producers of value added yarns in India having a group turnover of $ 100 Million from 6 manufacturing facilities.

Since beginning Damodar's philosophy was to provide a novelty product at an affordable price. Passion for yarn has made the company a trend setter in the industry. Damodar has introduced many new products with different blends and new looks. At Damodar value addition does not end at the spinning stage. The company has installed post spinning machines like TFO, Fancy Doubling, Hollow Doubling, Yarn Dyeing, Multi Colour Space Dyeing .

At Damodar Group Research & Development is the most important and on-going process. We have a state of the art R & D Department wherein our in house designers introduce a new product by initially making samples on bit looms and then the approved yarns are tried and tested on modernized looms. These samples are dyed and finished in our lab on sample dyeing and finishing machines.

Products

• Air Texturising
• Cotton yarns
• Fancy texturising
• Linen blends
• Special blends
• Synthetic yarns
• Yarn dyeing

Major Customers of Damodar

• Grasim Industries Ltd.
• Arvind Mills Ltd.
• Siyaram Silk Mills Ltd.
• Reliance Industries Ltd.
• Garden Silk Mills Ltd.
• Dicitex Decor Ltd.

Outlook

Promoter hold 69.21% stake of company. Company is steady dividend payer with constant growth compounder over a period of time. Last nine months top lines and bottom line reported by company is 525.5 cr and 6.81 cr respectively compare to last year 620.95 cr and 10.39 cr.

Company is available at just 99 cr market cap compare to top line of 600+ cr. Only long term genuine investor can enter. CMP is 89

Disc: holding few quantity of stock

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

 

JHS SVENDGAARD .....55% RETURN IN 18 DAYS .... POSITIVE UPDATE FROM COMPANY

JHS SVENDGAARD recommonded on this blog on 5th April, 2017 has made high of 61.95 just in 18 days !!! Almost 55% return from suggested price.

Today JHS has given positive update to BSE that ongoing disputes at various courts between JHS and various group companies of Proctor and Gamble Inc. India have been settled with mutual consent and concluded positively for JHS.

The settlement clears contingent liabilities to the tune of 206.15 crore, from the balance sheet of JHS.

JHS management further expects that the new expansion plan underway shall also be operational by June 2017, and shall positively add to the growth of the company in coming years.

The above news are big positive for JHS and create environment to holding the stock for long.

Disc: holding stock in core portfolio.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Jeevan Scientific Technology Limited .... Hidden Gem in Clinical Pharma Space

Today I am expressing my view on Jeevan Scientific, a proxy pharma player in the field of clinical research and clinical trial.

Company

Jeevan Scientific Technology Limited, established in the year 1999, is a global management consulting, technology services and outsourcing company located in Hyderabad, India.

Jeevan has been designed with state of the art facility to provide a broad range of clinical research services for healthcare/pharmaceutical industries across the globe.

Jeevan is a perfect blend of technology, innovation and expertise, which enables it to provide reliable, cost-effective and technology driven services and solutions to the clients across the globe. Jeevan's commitment to quality, and customer-focused approach bundled with outstanding expertise distinguishes it from others. The world-class team of highly qualified and experienced workforce enables Jeevan to meet the client expectations and deliver within the timeframe. Jeevan's service portfolio enables it to provide an integrated solution for the management of clinical data right from its inception to completion.

Board of Directors

Mr. SREERAMA KOTESWARA RAO SURAPANENI, Chairman
Mr. KRISHNA KISHORE KUCHIPUDI, Executive Vice Chairman & Managing Director
Mr. RAJENDRA PRASAD MUPPAVARAPU, CEO & Executive Director
Mr. RAGHAV BEERAM, Director
Ms. VANAJA KUCHIPUDI, Director
Mr. RAVI BABU THAMMAREDDY, Director
Mr. BHANU PRAKASH GALI, Director
Mr. VIJAY KUMAR ANNAM, Director
Mr. RAMA KRISHNA PRASAD KAKARALA, Director

The Visionary Leadership

 

Jeevan come to my focus after Mr. Rajendra Prasad, formerly associated with Aurobindo Pharma joined the board of Jeevan as CEO. Mr. Rajendra Prasad, has the vision of developing Jeevan as a fully functional CRO. Prasad is an excellent strategist, and a prudent decision maker with insightful and articulate vision. Prasad has been an exemplary leader in establishing and maintaining long-term business relationships. Before joining with Jeevan, Prasad was associated with Veeda Clinical Research as Chief Business Officer.

He had been associated with Veeda since its inception in 2004, in various leadership roles and had contributed immensely in the growth of Veeda both in “Technical” and “Business” fronts. He has a diversified experience and knowledge of various functional domains in the CRO industry including clinical operations, BA/BE studies, data management and bioanalytical.

He has lead the team in research and development and has hands on experience in developing and validating various bioanalytical methods. Prasad has a rich experience of more than 20 years in pharmaceutical and CRO industry and has worked in several leading names in the industry including GVK Bio, Aurobindo Pharma, Cadila Pharma, Lambda Therapeutics, Sun Pharma and Vimta Labs. He is a well-known "team builder" in CRO industry. Prasad holds a Master´s Degree in Pharmacy.

Outlook

Promoter and HNI holding 62% stake in company, Jeevan posted 12.3 cr top line and 0.49 cr bottom line in latest 9 month ended 2016-17  ( last full year profit was 0.42 cr ). Equity capital of company is low i.e. 6 cr with market capitalization of just 32 cr. Management is working hard for creating value for investors. Maximum turnaround company comes out from pharma sector we are highly bullish in this stock. investor may consider in long term view. Stock trading only in BSE @ 38 level. Only long term investor can buy stock for multiple gain in future.

Disc: holding stock in core portfolio.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

GP Petroleums Ltd ...... Upcoming Oil Conglomerate

Today I am expressing my view on GP Petroleums Ltd .. An upcoming Popular Lubricant Oil Brand manufacturer

Company

GP Petro earlier named as Sah Petroleum Ltd. GP Petroleums Ltd is a listed entity and a leading lubricant player, specializes in industrial & automotive lubricants, process oils, transformer oils, greases and other specialties under the brand name IPOL in India and overseas market. It is part of Gulf Petrochem, a global conglomerate operating in the oil space, driving international growth with an excellent suite of development projects spread across different continents with firmly established strategic business units (SBUs); Trading (Bitumen, Base Oil , Fuel Oil & Feedstocks, Distillates, Naphtha, Coal, Petcoke, Petrochemicals), Refining, Bunkering, Oil Storage, Shipping & Logistics, Lubes & Greases Mfg. and many others.

Clientele

GP has spectrum of clients in automobile, tyre, heavy machinery sectors such as MRF, CEAT, APOLLO, GOOD YEAR, JK TYRES, BRIDGESTONE, TATA MOTORS, TVS, M&M, TAFE, FIAT, HERO MOTOCORP, ACE, ESCORT, EICHER MOTORS, RAYMONDS, TATA STEEL, BAJAJ, GODREJ and many more.

Prospects

 

GP has done strategic tie up with the largest spanish lubricant manufacturer REPSOL in 2015. Under this agreement GP solely manufactures and markets the Brand REPSOL in India. REPSOL is one of the most popular lubricant brand in world especially in two wheeler and sports car segment. India is having 33% of the worlds two wheeler market of the world. Recently GP has launched REPSOL brand passenger car engine oil also. Considering the scenario GP has potential to become the largest Indian Lubricant Supplier. 

 

Outlook

Promotors hold 72.27% of stack. In last qtr Promotors raise its stack marginally. Moreover topline and bottom line of last nine month 352 cr and 14.43 cr respectively in comparision of FY16 whole year of 422 cr and 13.59 cr. It clearly shows GP is own fast growth lane and due to the tie up with REPSOL sky is the limit for GP. The stock is listed in both BSE and NSE and CMP is 92.9

Disc: I am share holder of GP Petroleums Ltd.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Kanoria Chemicals & Industries Ltd ... Probable Money multiplier

Today I am expressing my view on one of the multi sector player .... Kanoria Chemicals & Industries Ltd (KCIL)

Company Profile

Kanoria Chemicals & Industries Limited (KCI) is a leading manufacturer of chemical intermediates in India. Apart from chemicals, it has diversified business interests including automotive and industrial electronics, renewable energy and textiles.

KCI has two chemicals manufacturing facilities, one at Ankleshwar in the state of Gujarat, which manufactures Alcohol based intermediates; and the second at Visakhapatnam in the state of Andhra Pradesh, which manufactures Formaldehyde, Hexamine and resins. Both facilities have ISO 9001, ISO 14001 and OHSAS 18001 certifications. With a product portfolio of over ten products, the company has a market leadership in three and substantial shares in the others.

With over five decades of experience in manufacturing chemicals, KCI has diversified into renewable energy and knowledge based sectors. It has set up a 5 MW grid interactive solar power plant using Photovoltaic (PV) technology near Jodhpur in the state of Rajasthan.

In the year 2012, KCI acquired APAG Holding AG, the Switzerland based holding company and its wholly owned subsidiary APAG Elektronik AG, Switzerland. APAG is engaged in development and sale of electronic and mechatronic modules and control devices for the automotive, consumer goods, power tool electronics and building automation industries. The designing and engineering facility of the company is located in Switzerland, whereas the manufacturing facility is located in the Czech Republic.

In another diversification initiative, KCI has incorporated a subsidiary company, Kanoria Africa Textiles Plc in Ethiopia, Africa and is setting up a Greenfield manufacturing plant to initially produce 12 million metres of Denim per annum.

KCI has strong capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices. The Company steadfastly believes in the core values of sustainability, transparency, ethical business practices, and maintaining high standards of corporate governance.

KCI is well recognised in the areas of environment management, resource use efficiency and social responsibility. It has been the recipient of several awards, including:

• Indian Chemicals Manufacturers Association (ICMA) Award for Water Resource Management in Chemical Industry
• ICMA D.M. Trivedi Award for Introducing Advancement in Technology having a Widespread Impact on Chemical Industry
• TERI award for Corporate Excellence in Environment Management
• Golden Peacock Eco-Innovation Award from the World Environment Foundation
• National Award for Fly Ash Utilization jointly awarded by the Department of Science & Technology, the Ministry of Power and the Ministry of Environment & Forests, Government of India
• The Indian Chemical Council (ICC) Award for Social Responsibility

KCI has a synergistic relationship with its group company KPL International Limited which is a 20 year old professionally managed international business company, specialising in global marketing and distribution of chemicals, plastics, paper and allied products.

Financia Structure

1. The financial structure of KCL is quite strong in all aspects. Its reserves are 22 times its equity capital.
2. The Company is cash-rich as its debt to equity ratio is just 0.2, which is close to being debt-free. Cash and bank balance of Rs.42.31 crore is 15% of fixed assets, which shows that the Company has sufficient funds for expansion or modernization.
3. Long-term and short-term investments of Rs.82.8 crore (57.4+25.4) is also four times its equity capital.
4. KCL issued bonus of 1:2 in 2007. There is possibility of Bonus due to its sound financial condition 

Outlook

Promoter hold 74.43% stake of the company. Company posted 320.21 cr top line and 21.3 cr bottom line in FY 15-16 and 241 cr top line 13.28 cr bottom line in latest 9 month ended 2016-17. The upcoming qtr seems to be promising. The stock is trading at 72.7 which is at PE of 14.9 of FY 15-16. As per my expectations KCL is potential Blue Chip Candidate.

Disc: I am holding few quantity of stock.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Cosboard Industries Ltd ...... The Hidden gems in Paper Industries

Today I am expressing my view on a hidden gems in paper industries .... Cosboard

As a Sector Paper Industries has long way to go and the demand of paper is exponentiallly increased. If you take bird eye view of the sector, following are major points to look upon.

Snapshot on Indian Paper Industry

1) India accounts for 2.6% of world paper production

2) India accounts for 1.6% of world paper consumption

3) The total size of the industry is estimated to be around Rs 50,000 crore

4) Per capita consumption of paper in India is 9.8 kilograms, while the global average is 58 kilograms

5) India’s paper consumption is expected to grow to around 40 million tonnes by 2026 from the current 14 million tonnes.

6) There are almost 28 established players in the Indian paper sector and consolidation of sector is possible.

7) The growth in e-commerce has opened a new opportunity for the sector

 

History of Cosboard

Cosboard industries Limited established in 1981 with 1st 15 TPD Board Plant as Private Limited Company and  Created Market all over India for its products.
 

        
It was further  expanded in 1995 immediate after its Public issue and established 25 TPD Kraft Paper Plant and catered to neighbouring States;  yet another expansion was completed  in 2001 with 60 TPD  Writing Printing & Newsprint Paper Plant and as on date  has 3 units  with production capacity of 100 M.T. per day over and area of 8.5 acres in Jagatpur Industrial Estate  which  is just 5 k.m. from Cuttack town and  25 k.m. from Bhubaneswar Airport.

Products and Marketing

The company makes Grey, Duplex, L.W.C. and Colour File Boards manufactured in 1t Plant caters to packaging and stationery manufacturers all over India.

Kraft Paper for corrugation industry and Kraft Paper Sheets for stationary manufacturers also caters to Central and Eastern parts of India,

Newsprint paper of high quality is successfully satisfying day today needs of total Orissa and nearby States Newspaper Publishers.

Book Printing  paper of high quality caters to Government educational and notebook industry in Orissa and neighboring States. Company is also able to cater to tailor made special items like Colour Paper to suit quality end-users in Orissa and neighboring States.

Outlook

Promoter holding 47.1 % stake in company, cosboard posted  49 cr top line and 2.5 cr bottom line in latest 9 month ended 2016-17. 65 cr top line company is available just 15 cr market cap..... this stock just trading 9 PE, and strong management clean balance sheet with good customer basis stock  trading relatively more attractive to its peer group. Most of the paper stocks had rally in last few weeks but cosboard hasnt moved yet. Stock trading only in BSE @ 38. Few HNI hold stake in the company.
 

Disc: I am shareholder of the company.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

International Combustion (India) Ltd ..... A turnaround story

Today I am expressing my view on a turnaround candidate ... International Combustion Ind Ltd

History

International Combustion commenced operations in the year 1936 based in Calcutta as a trading house representing the interests of International Combustion, U.K. In 1974 the Company changed its status from Private to Public Limited Company.

In 1961, the Company started its manufacturing activities, and presently has three business divisions:-

Heavy Engineering Division- Nagpur & Kolkata factory

Kolkata Division

Nagpur Division

Bauer Division- Aurangabad factory Project Plant System

  Aurangabad Division

From a modest beginning with manufacture of mineral grinding mills, the Company today serves all the major core industries with a specialised range of products which include, Vibrating Screens and Feeders, cone crushers, Bulk Material Handling Equipment,mining haulages, Raymond Grinding Mills, Air Classifiers and Flash Drying systems and Geared Motors and Gear Boxes.

Foreign technical collaborations and licensing agreements with world leaders in the respective product groups have ensured manufacture of premium quality equipment.

Fully equipped manufacturing facilities at Calcutta, Nagpur and Aurangabad ensure total control over production and product quality.

Outlook

 Promoter holding 53% stake in company, IC posted 24.6 cr top line and with exceptional profit of 1.5 cr in Q3 of FY17 compare to FY16 annual loss of 0.51 cr. EPS of last qtr is 6.22 Vs negative EPS of last Financial Year. At this stage it gives clear sign for turnaround story. Company is having huge finance cost outflow. Stock is having low liquidity due to less capital of just 2.89 cr. Stock only trading in BSE @ 654 level. One can expect minimum 4 digit rate in no time. Long term it may touch 5 digit also.

Disc: holding few shares of company.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

King of All Oils ... Kavit Ind

Dear investors,

Today I am expressing my opinion on one edible oil stock.

Gujarat is hub for oil commodity producer while the company we are discussing is from Gujarat only.

In the quest of providing customers with superior range products.....Kavit has broadened business horizons by introducing cottonseed oil, groundnut oil, mustard oil, Soyabean oil, Sunflower oil, Corn oil and table margarine.
 

The Manufacturing facility comprises an integrated, continuous plant, set up by Alfa Laval.
 

All the packaging is done in-house. Tins, HDPE jars, PET bottles or corrugated boxes are created to retain the goodness of the oil. The products are lab-tested at every stage, staring with the raw material, and ending with final packaging.

Health and Welness Concept
 

Kavit Edible oil is enriched with Vitamin A-D-E and its healthy for heart.high level of Vitamin E and Anti oxidants and other essential minerals helps Skin and Hair growth due to excessive amount of vitamin E.

It is proven that now people are well aware for their diet as well as eating outside home I.e. hotels and restaura even well branded restaura offers client to visit its cooking area anytime for its clearness and quality foods. Oils is essential part of any cooking you name.

Outlook:
 

Promoter hold 42% stake of the company in addition to that a group of few specify body hold big chanck of around 45% stake of kavit Ind. Company posted 114.1 cr top line and 0.83 cr bottom line in latest 9 month ended 2016-17 ( last full year profit was 0.16cr ) In short company posted robust growth of 500% in bottom line and 400% in top line. Stock only trading in BSE @ 29 level

Disc: I am holding few quantity of stock.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

Basics of Option Trading

Options are a type of derivative security. They are a derivative because the price of an option is intrinsically linked to the price of something else. Specifically, options are contracts that grant the right, but not the obligation to buy or sell an underlying asset at a set price on or before a certain date. The right to buy is called a call option and the right to sell is a put option. People somewhat familiar with derivatives may not see an obvious difference between this definition and what a future or forward contract does. The answer is that futures or forwards confer both the right and obligation to buy or sell at some point in the future. For example, somebody short a futures contract for cattle is obliged to deliver physical cows to a buyer unless they close out their positions before expiration. An options contract does not carry the same obligation, which is precisely why it is called an “option.”

Let us start leaning in easy language.....

Option idea came from insurance, it work same like an insurance company risk. Meaning of option is it self insurance or used for hedging purpose.

Generally we buy insurance to secure our life or uncertainty, same lies with option it is used during uncertainty timing like election, flood, rain or war where one should enter in position.

Let us focus more on practical aspects.....

Option includes...
Call option
Put option

Once can short (sell) or long (buy) option as per situation,timing, news and risk appetite.

Call option : Call options provide the holder the right (but not the obligation) to purchase an underlying asset at a specified price (the strike price), for a certain period of time.

Example: current price of reliance is 1300 rs lot size is 500 let take current premium of 1400 strike call is 20 rs. assume reliance stock on expiry April comes at 1500 rs.

Now relate with above theory .....
 

Option holder the right to purchase an underlying  asset,

How ?
Reliance Cmp is 1300 rs
Call option strike 1400 premium 20 rs
Lot size 500
Expiry rate of reliance 1500 rs

Now holder can exercise right if getting benefit .....
 

Here holder of call option paid net premium of 20*500 is equal to 10000 rs.
On expiry stock came to close at 1500 rs
 

Net pay off will be 1500-1400 (strike) = 100*500 (lot size) = 50000 rs

Investment of 10k excludes comes to 40000 net gain.

Now what learning we can get from above theory.....

Reliance strike call 1400 @ 20 rs.....

Premium  20 rs is like an insurance premium we pay for something

Premium is sum of intrinsic value plus time value.

Their are 3 kinds of options

At the money option (ATM)
In the money option (ITM)
Out of the money option (OTM)

Premium of option at ATM is more of time value
Premium of option at ITM is more of intrinsic value
Premium of option at OTM is more of time value only.

Call pay off comes.....

Current rate of underlying - strike price of call option.

Reliance example 1500-1400

Difference of 100 will be net payoff on expiry day but before expiry time value included in option pricing which depreciate day by day and at expiry only intrinsic value remain.

For call option of reliance Cmp 1300

ATM option will be 1300 strike
OTM option will be 1400 strike
ITM option will be 1200 strike

Let assume premium of 1400 call @ 20

Valuation of above option strike

ATM 1300 strike @ 40-50 rs
OTM 1400 strike @ 20 rs
ITM 1200 strike @ 110 rs

Let stock moved to 1350 rs

Tantitive rate will move like.....
ATM 1300 strike @ 75-80 rs
OTM 1400 strike @ 30-32 rs
ITM 1200 strike @ 152-155 rs

Premium learning when stock moved 50 rs what premium reflect at 1350rs,

# 1300 strike call option 75 rs includes 50+25 rs
 

Intrinsic value of 50 rs and time value of 25 rs
# 1400 srtike call option 30 rs increase by 50% all time value.
#1200 srtike call option 152 rs invludes 150 rs intrinsic value and 2 rs around time value.

So above concept prove that when stocks option become ITM option premium invludes maximum intrinsic  value and OTM option includes time value.

Will discuss more on this concept by taking real expiry and more notes on coming when.

Kindly prove your comment and quary for making live discussion.

Competitive pick from pharma space....Ortin Laboratories Ltd. (CMP 23.5)

ORTIN LABORATORIES LIMITED, a Trusted Reliance for Quality established in the year 1986 to offer QUALITY Drugs and Medicines to the suffering mankind. Ortin's Formulations unit is located in a spacious area of 25000 sq feet with all ultra-modern infrastructures as per the WHO GMP Standards to manufacture the complete range of Pharmaceutical Formulations of TABLETS, CAPSULES, SYRUPS, and DRY POWDERS.  The Company shares are presently traded in the Madras & Mumbai Stock Exchanges.

In the year 2010, M/s Vineet Laboratories Pvt Ltd has been merged with Ortin. Vineet Laboratories is an established Drug Intermediates manufacturing unit, majorly involved in the preparations of intermediates for ANTI-RETRO VIRALS and LIPID LOWERING AGENTS which is located in Choutuppal, Nalgonda District. The manufacturing unit is a complex of Production Blocks, Quality Control, R & D and Quality Assurance. The production blocks are well equipped with multipurpose SS and GLASS-LINED REACTORS.

Ortin's Drug API Intermediates manufacturing unit has been certified as an ISO 9001: 2008 company by Det Norske VERITAS, The Netherlands for its quality systems management which shows the quality conscious to deliver best quality products.

Ortin's Formulations unit has been certified as a WHO - GMP certified company and an ISO 9001: 2008 Company by the Internationally Recognized Quality Management Certification Body, the BMQR & Accredited by AIAO-BAR, USA in pursuance of its focus towards Quality with its Policy to enhance customer satisfaction by providing Quality Pharmaceutical Formulations at optimum cost and maintain profitability through continual improvement of Quality Management Sytems and cGMP.

Ortin is marketing its formulations all over India and its products have been well accepted by the medical profession. Ortin is honored as a registered Supplier of Drugs & Medicines with the most reputed Central, State & Quasi-Government Organizations & Institutions of our Country.

ORTIN is capable of producing 100 million tablets, 100 million capsules ,5 million dry powder bottles and 50,000 Lts Liquid orals per month at its Formulation Unit.

List of product profile given on website. Company is having vast product profile as well as working as merchant exporting trader.

Ortin, supply of pharmaceutical formulations comprising tablets, capsules, liquid orals, ointments, injections, sterile dry powder injections , liquid injections, ear drops, nasal drops, eye drops, pharmaceutical veterinary tablets, dry syrups, liquid orals, tablets, capsules, sterile powder.

Global presence:

Ortin's formulation unit is a WHO GMP and ISO 9001:2008 certified company. Ortin is already registered with NDA, UGANDA & MOH, Srilanka and registration is under process in KENYA, TANZANIA, NIZERIA, GHANA, SOUTH EAST ASIAN & CIS countries for our formulations. It is also manufacturing for different importers to market their products in Russia, Ukraine, Kajakistan, South America etc.

Outlook:

Promoter holding 35% stake and company posted 40 cr top line and 0.66 cr bottom line in latest 9 month ended 2016-17. Company total market cap is equal to nine months sales. It is always safe and best bet from pharma that sales to market cap ratio seems difficult to find 1:1

Expecting good qtr result in coming time as company is working well which will turn fortune in near time. Stock trading both NSE and BSE @ 23.5

Disc: I am shareholder of the company.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

A Hidden FMCG Gems ..... JHS Svendgaard

Today I am expressing my view with one not so called known FMCG player trading at NSE and BSE.

If one checks the historical performance of various sector in Indian stock market than one gets the idea that Fast moving consumer Goods (FMCG) is the fourth largest sector of the Indian economy and the most consistently growing one too. Within the sector, Oral Care is a niche sub-seqment and one of the fastest growing one.  Therefore, if we get an interesting story in the sector, one should strongly consider it. Increasing disposable earnings, growing middle class, rising oral awareness, convenient oral care products, growing distribution chain and logistics storage, increasing toothpaste penetration, development in oral care solution segments and others are some of the factors expected to drive the industry’s growth in the coming decades.

JHS History

Started as a small scale enterprise in August 1997, Sunehari Svendgaard Laboratories Limited moved at a brisk pace and was incorporated as JHS Svendgaard Laboratories Limited on October 8, 2004. By April 2005 the company took over businesses from Sunehari Svendgaard Laboratories Limited, Sunehari Oral Care and Jai Hanuman Exports. Keeping up with the pace it reached new heights on October 21, 2006 when it was listed at BSE and NSE of India Limited at a price of Rs. 58.00.

Starting with manufacturing of only Toothbrushes the company widened its scope to Toothpastes, Mouthwash and Denture Tablets and today is an oral care product manufacturer and exporter. Apart from working on its own brands the company also offers Contract Manufacturing Partnership to brands in the domestic and the international market. One of the most prominent brands manufactured under the company’s name is Dr. Gold which was launched in April 2009 with economy, mid economy and premium toothbrush categories.Some of the prominent brands with whom the company has worked in the past P&G, & currently working Amway India Enterprises Pvt. Ltd., Dabur India Limited, Elder Health Care Limited, J. L. Morison’s India Limited and in the international market are - Dr Fresh , Peanuts , Lavoris, Hello Kitty , Walgreens  and Walmart.

The JHS team is a perfect blend of experienced professionals from technical, commercial and other fields. This combined with the company’s vision ensures in manufacturing of high quality toothbrushes using the best raw materials and equipments from around the world like Dupont USA, Bayer Germany, GE plastics, Nan Ya plastics Taiwan etc. In line with the quality standards of ISO 9001:2000 JHS has grown at a rapid pace to become one of the top Indian exporters and a leading supplier to MNC customers in the Indian market.

Company Rational

JHS is now an almost debt free company with enough capacities (55% capacity utilization), therefore, there’s no need of capex for near future. Furthermore, the company having learnt its lessons the hard way has tweaked its business model to become a branded FMCG player and not just a contract manufacturer. Though contract manufacturing is also growing very briskly they are ensuring that in future there’s no client concentration risk and therefore, would not have more than 25% revenue coming in from any single customer. At present, its working with a lot of customers like Dabur, Patanjali, Colgate, Lavoris, Amway,Apollo, Future Group, Dr. Fresh etc. With ace investor Nikhil Vora also a big stake holder in the company, combined with the changed business dynamics and direction of the company, JHS is bound to create serious share holder wealth in the coming years.

Valuations

Valuation wise JHS is very cheap as it is available at just one time sales whereas other FMCG companies trade at 7-15 times their annual sales. Promoters stake at the moment is around 37.55% which would increase to around 42% after conversion of warrants this year. The sales of company has grown from 35cr to 100cr in last two years with losses reducing drastically and the company even posting a profits of 3.37 cr in last 9 months compare to 21.63 cr loss in FY16.

Technicals

The stock is trading at just 40.5 Rs  and the stock has formed a firmed bottom and has made long term basing and accumulation pattern. The stock is ready for a fresh upmove and given what we have on the fundamental side, the stock will create sustainable wealth for its investors.

Disclaimer : I am holding stock of JHS.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”

ZEN TECHNOLOGIES ..... THE POTENTIAL MULTIBAGGER

Dear investors

Today I am expressing view on company actively working in training and simulation area, stock listed in NSE and BSE.  ......  Zen technologies 

Zen Technologies was incorporated in the year 1993 with an aim to develop state-of-the-art training simulators for weapons and allied defence equipment. The company went public in the year 2000. It has been a profit-making and dividend-paying company since long. Face value of stock is 1 rs

Zen, over the years, has developed expertise in designing, developing and manufacturing various types of simulators. The products developed in-house not only meet all qualitative standards but also are cost-effective.

The company has supplied over 450 simulators to over 100 customers. Its customers are located across the length and breadth of the country. Its main customers are Defence, Services, State Police forces, Para Military forces and the Navy of a South-East Asian country.

The goal of the company is to develop world-class simulators. The company attaches special importance to its R and D activities. The R and D division has sophisticated software tools and skilled manpower.

Zen has AS9100C from DQS Inc., ISO 9001:2008 (QMS), ISO 14001:2004 (EMS), ISO/IEC 27001:2013 (ISMS) certifications.

Zen Technologies is having developed advance technology and expertise.

The R and D unit at B-42 Industrial Estate, Sanathnagar (Hyderabad) is recognized by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India.

Rational 

Promoter holding 59.44 % stake and company posted 44.5 cr top line and 6.2 cr (tax adjusted figure) bottom line in latest 9 month ended 2016-17. Few ace investors i.e. ashish kacholia and mukul agrawal hold stake in company. It is niche sector where opportunity will be arises in coming time due to government interest and safety of country. In next two quarter may give good top line and bottom line, also this stock is not participated recent stock market bull rally. Stock trading both NSE and BSE @ 71. Expecting some big order announcement in coming time. 

Conclusion

The Govt of India's make in india movement and emphases towards Defence Sector boost has created ample opportunities of players of defence sector and especially Zen Technologies. Zen has potential to become multibagger in long run.

Disclaimer : I am holding stock of Zen Technologies.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN.

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”