Olympia industries - what a comeback!!!

When you take right step after learning from mistake and when you pave your way into most growing business of e-commerce, you are bound to success, the similar kind of story happens with Olympia Industries. 

Historically, the company started with manufacturing of Dyed and Blended yarns in Gujarat and Maharashtra. Presently with the company’s state of art technology and its insurmountable passion for excellence the company is now spreading its wings in Marketing & Promotion of Baby care, Home & Kitchen and Beauty & Personal Care Appliances products through E commerce on Amazon as SOA (Selling on Amazon), PSP (Platinum Seller Program) & FBA (Fulfillment by Amazon). With more than 24000 products currently sold, they have now introduced their own Apparel brand in the Market.

The Company currently has warehouse in Mumbai, Bengaluru and Gurgaon to handle the massive requirements of consumers throughout the nation and is planning to expand in multiple formats to reach consumers. 

When other e-commerce player in the market are taking steps for expansion and acquiring market share, they take hit on the balance sheet. Flipkart, snapdeal, ola etc. none of these e-commerce are targeting profit. On the other hand, we have a company which is earning 6% NPM and making decent profit available at very attractive valuation. Not only that, company is even growing its topline at significant rate. If the company takes every right step in future, it can be a massive wealth creator. 
(Disclosure - We have a positive coverage on this company. This is my personal view on the company and viewers are advised to do their own research before investing in the company.)

Elantas Beck India - Evergreen stock

This is a  company with excellent promoter track record, which believes in sharing their growth with small investors by rewarding them paying 920% and 595% dividend for two consecutive year. Not only that it's a debt free company with 75% promoter holding and having  50+ years of experience in the market. It is an ISO certified company, which enjoys leadership cap in the market with owning 40+ % market share in the core business of the company. The company not only sustain and improving its top line but it has also showing promising sign of improving bottom line. With current quarter result company has posted 16 INR EPS in last 3 months. We believe company is continuously going to post excellent result, however we advise our viewer to study the company further before taking any position in this counter.

(Disclosure - we have positive coverage on this company)

Automobile Corporation of Goa

A tata group company, available at satisfactory valuation, improving net profit margin, high dividend yield, CARE AA and A1+ rating on long term and short term borrowing and high conviction play on economic improving cycle. For those who are long term investors can study the stock and take their call based on their conviction.
Company info can be found here - http://acglgoa.com/

(Disclosure - we have positive coverage on this stock )

ISGEC Heavy Engineering Ltd - potentially hidden diversified global player in the market

Here's something new for you, rather than providing full coverage on the stock with what are the potential reasons for stocks to outperform the market, it would be great if our followers share their view on the stock and come up with what is the company profile, what's unique potential in business, promoter pedigree, why Mr. market has ignored it?, what are the ways of improvement etc. In short, what makes our investment so great? Hope this steps will help in learning + earning rather than spoon feeding. 

Cheers, to all contributors and investors.
(Disclosure - we have positive coverage on the stock at CMP)

V2 RETAIL - An E-commerce play

The company has been well covered by well-known stock analyst, Mr. Valuepick, So I am not repeating the same here.  Story can be read from here.

However, for the benefit of my readers, based on recent development in the company and based on upcoming E-commerce IPO valuation of Infibeam, we believe v2 retail has lot of potential from the current level. Hence, we are giving positive coverage on the stock.


Courtesy - http://value-picks.blogspot.com/

Subex - reviving like phoenix

Company Profile - 

Subex Limited is a leading global provider of Business and Operations Support Systems (B/OSS) that empowers communications service providers (CSPs) to achieve competitive advantage through Business and Capex Optimisation - thereby enabling them to improve their operational efficiency to deliver enhanced service experiences to subscribers.

The company pioneered the concept of a Revenue Operations Center (ROC®) – a centralized approach that sustains pro fitable growth and financial health through coordinated operational control. Subex's product portfolio powers the ROC and its best-in-class solutions such as revenue assurance, fraud management, asset assurance, capacity management, data integrity management, credit risk management, cost management, route optimization and partner settlement. Subex also offers a scalable Managed Services program with 30 + customers.

Subex has continued to innovate with customers and have been jointly awarded the Global Telecoms Business Innovation Award 2015 along with Mobily; in 2014 with Telstra Global; in 2012 with Idea Cellular for Managed Services and in 2011 with Swisscom for Fraud Management. Subex has been awarded the Global Market Share Leader in Financial Assurance 2012 by Frost & Sullivan and has been the winner of Pipeline Innovation Award 2013 in Business Intelligence & Analytics; Capacity Magazine Best Product/ Service 2013.

Subex's customers include 29 of top 50 operators* and 33 of the world’s 50 biggest telecommunications service providers worldwide. The company has more than 300 installations across 70 countries.

What went wrong in past - 

Subash Menon—entrepreneur, risk-taker, history buff and socialist-communist started a company with a loan of Rs 20,000 from an ex-employer in 1992. He built Rs 477-crore Subex out of it. In the 1990s and 2000s, Subex challenged the conventional wisdom about creating software in India. It sold branded software licences instead of selling code by the kilo (or KLOC—kilo lines of code), ploughed back cash and equity liberally for growth instead of hoarding every penny of profit, and aggressively acquired foreign companies. From 2000, its revenues grew at a compounded annual rate of 33 percent to reach $54.8 million by 2007. 

Then, in January 2007, Subex bought Canadian telecom software company Syndesis, its seventh acquisition, for $165 million in cash. For the same reason, Subex  raise all $180 million through the foreign currency convertible bonds (FCCB) route and piled up huge debt on the book. As it happens with many other companies, 2008 market crash put company into a difficult time. From almost 700 in 2007, its shares fell by more than half to Rs 350 in 2008, and to just around Rs 26 in 2009 which made the company sick.

Turn around - 

In 2011, Anil Singhvi, a former CEO of cement maker Gujarat Ambuja and founder of investment advisory firm Institutional Investor Advisory Services (IIAS), and Sanjeev Aga, former managing director of Idea Cellular, joined the board in April 2011 as independent directors. On October 5,Surjeet Singh, who played a significant role in buy out of IGate Patni (Patni Computers) was elected as Subex’s new CEO. It is when a new inning for Subex has started.

Here are some current developments -

• Company has cut down losses and for  the first time after couple of quarters, posted profit in March 2015 quarter. On the consolidated basis company has posted profit from last 3 quarters.
• Sales are rising which is a sign that company is on the positive track.
• Two tranches of FCCB conversion in the last 12 months indicates the confidence of the bond holders.
• Subex bags order from reliance jio and this can really a big opportunity for subex as reliance jio is in final phases of roll-out more details can be found here.
• The CEO has indicated that Subex intends to become a USD 100 million revenue business with a operating margin of approx 25%; stock at current market cap is available very cheap.
• After such a rough period, the executive leadership, most notably, Vinod Kumar, Ashwin Chalapathy, Shankar Roddam, Ganesh and Sekharan stayed with the company.  
• Most of the clients stayed on with the company which believes they are firm believer in company's products and solutions. 

We believe subex's second inning, if played well can be augur as the master stroke for the investor in the company. For risk takers and long term investors- this could be a bigger opportunity to invest. Hence, we provide our positive coverage on the company.

Triton valves - hidden gem of auto sector

Company Profile -

Triton Valves Limited is an ISO 9002, ISO/TS 16949, ISO 14001 certified and possess technical Collaboration with PIGEOT BANDIN SA-FRANCE. The company is India’s largest manufacturers of automotive tyre tube valves, valve cores and accessories. The company was established in 1975 and is based in Bangalore, India. The company designs, manufactures, and sells automotive tire valves, valve cores, and accessories in India. . It offers valves for bicycles, mopeds, motor cycles, scooters, cars and vans, trucks and buses,tractors, industrial vehicles, aircrafts, curing bags, and OTRs; cores, such as standard and large bores; accessories comprising valve caps, bridge and ring washers, rubber washers, rubber bases, bushes, as well as rim, hex, and lock nuts. The company also provides adapters and plugs, including water filling adapters, envelope adapters, and tubeless rim hole plugs; and service tools, including valve core tightener for standard bore double ended type core tightener, tubeless snap-in valve pullers for passenger cars and motor cycles, and tire tread depth gauges. Triton Valves Limited supplies its products to the tire and tube manufacturers. The company also exports its products.

Products include

• VALVES
• CORES  
• SERVICE TOOLS  
• ADAPTERS & PLUGS  
• ACCESSORIES 

Why to invest? 

1. Auto sector performance is improving and so is Triton valves performance will improve -

The Indian auto component industry is one of the country's rising industries with tremendous growth prospects. From a low-key supplier providing components exclusively to the domestic market, the industry has emerged as one of the key auto components centres in Asia and is today seen as a significant player in the global automotive supply chain. India is now a supplier of a range of high-value and critical automobile components to global auto makers such as General Motors, Toyota, Ford and Volkswagen, among others. 

2. One of the leading provider in India and long growth story - 

Here is the list of customers in different segments

• OEM customers - Hyundai, General Motors, Ford, Honda bike, Suzuki, Toyota, Honda, Fiat, Yamaha, Mahindra, Ashok Leyland, Bajaj Auto, Tata Motors, TVS-sricakra, Wheels India. 
• Tire customers - Bridgestone, Apollo, CEAT, MRF, Goodyear, Birla Tyres, Dunlop, JK Tyres. 
• wheel Customers - Maxion, Wheels India, AMW
• Construction equipment customers  - Larsen & Toubro, Case Construction, BEML 
• International export customers  - Bridgestone-Thailand, Honda,-Indonesia, Orange electronic-Taiwan 

In short, they provide products to almost all well-known market leaders

3. Government initiatives -

The Government of India has allowed 100 per cent FDI in the automotive industry through automatic route. With a special focus on exports of small cars, multi-utility vehicles (MUVs), two and three-wheelers and auto components, the automotive sector's contribution to the GDP is expected to double reaching a turnover worth US$ 145 billion in 2016, according to the AMP 2006-2016. Further, govt. reforms will likely to have positive impact on automotive sector which indirectly will stimulate growth of triton valves. 

At the current market price of Rs. 990, the stock P/E ratio is at 13x FY15E and 12 x FY16E respectively. Earnings per share (EPS) of the company for the earnings for FY16E are seen at Rs. 84. Net Sales and PAT of the company are expected to grow at a CAGR of 11% and 44% over 2013 to 2016E respectively. We expect that the company surplus scenario is likely to continue for the next three years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ for Medium to Long term investment. 

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Updates on suggested stock

We have recommended couple of stocks in the past and it's time now to evaluate our performance.

We are fortunate enough to see even nine baggers in this 1 year ride. Hopefully you would have earned decent reward by being investor with our recommendation. Here, we are sharing our current hold on positions. Please share our work if you liked our recommendation.

stocks	suggested price	current price	old link
swaraj engine	865	910	http://value-pickr.blogspot.com/2015/06/swaraj-engines-buy.html
dewan housing	393	427	http://value-pickr.blogspot.com/2015/06/dewan-housing-finance-ltd-buy.html
patels airtemp	130	137	http://value-pickr.blogspot.com/2015/05/patels-airtemp-long-term-story.html
bambino agro ind.	100	92	http://value-pickr.blogspot.com/2015/05/bambino-agro-industries-best-bet-in-fmcg.html
good luck steel	81	87	http://value-pickr.blogspot.com/2015/04/good-luck-steel-tubes-value-buy.html
pnb gilts	30	28	http://value-pickr.blogspot.com/2015/03/pnb-gilts-future-potential.html
snl bearing	97	109	http://value-pickr.blogspot.com/2015/02/snl-bearing-consistent-growth.html
minda ind	560	504	http://value-pickr.blogspot.com/2015/01/minda-industries-strong-outlook.html
srikalahasthi pipes	72	202	http://value-pickr.blogspot.com/2014/12/srikalahasthi-pipes-ltd-recommend-to-buy.html
vinyl chemicle	63	71	http://value-pickr.blogspot.com/2014/12/vinyl-chemical-fevicol-strength.html
pioneer embroideries	19	34	http://value-pickr.blogspot.com/2014/11/pioneer-embroideries-coming-on-track.html
palred tech.	20	47	http://value-pickr.blogspot.com/2014/11/palred-technologies-e-commerce.html
kellton tech	21.5	67	http://value-pickr.blogspot.com/2014/10/kellton-tech-story-unfolding.html
camphor and allied	420	317	http://value-pickr.blogspot.com/2014/09/camphor-allied-products-must-have-stock.html
sterling tools	290-320	330	http://value-pickr.blogspot.com/2014/08/sterling-tools-medium-to-long-term-bet.html
hester bioscience	199	625	http://value-pickr.blogspot.com/2014/07/hester-bioscience-buy.html
kitex garment	246	1000	http://value-pickr.blogspot.com/2014/07/kitex-garment-must-buy.html
ganesh ecosphere	76	156	http://value-pickr.blogspot.com/2014/07/ganesh-ecosphere.html
indo count industries	87	723	http://value-pickr.blogspot.com/2014/06/indo-count-industries.html
Mold-tek packaging	64	178	http://value-pickr.blogspot.com/2014/06/mold-tek-packaging-bright-future-ahead.html
kovai medical	180	695	http://value-pickr.blogspot.com/2014/05/kovai-medical-care-and-hospital.html
ajanta pharma (split adjusted)	426	1600	http://value-pickr.blogspot.com/2014/05/ajanta-pharma-is-buy-at-cmp.html
vguard	492	901	http://value-pickr.blogspot.com/2014/05/v-guard-short-term-long-term-buy.html
granules india (split adjusted)	35	85	http://value-pickr.blogspot.com/2014/04/granules-lndia-buy.html
ccl products	110	183	http://value-pickr.blogspot.com/2014/09/ccl-products-strong-buy.html
kpr mill	160	665	http://value-pickr.blogspot.com/2014/05/kpr-mill-result-says-its-buy.html
gulshan polyoyl	210	296	http://value-pickr.blogspot.com/2014/09/gulshan-polyoyl-convincing-future.html