KOVAI MEDICAL CARE AND HOSPITAL - becoming next apollo hospital?

Company profile - 
“Incorporated in 1985, Kovai Medical Center and Hospital (KMCH), the 750-bed Multi-disciplinary advanced super specialty hospital located in a clean, serene 20 acre plot in Coimbatore offers total and comprehensive health solution for various diseases. Comprehensive infrastructure, cutting edge technology, latest Hi – Tech medical equipment in all specializations and committed medical experts make KMCH trusted brand. The hospital has pioneered several techniques like the steroid free kidney transplantation, GDC coiling and clipping for brain aneurysms which save lives, improve patient comfort and minimize side effects. There are three satellite centers attached to KMCH-City Center (Ram Nagar), Erode Specialty Hospital (100 bed). Erode Center (100 bed) with both in-patient and outpatient facilities. It has a rural health center at Veeriampalayam to serve the rural community and the under privileged.”

Investment Theme:

Recession proof, Growing business (Industry growuth 14%) and sustainable services for cash business. No inventories. No Debtors. No Worries.

PE rerating is a possibility as other listed players like Apollo command P/E:40.

IMO, Expecting a 3-5 bagger in 2-4 years in a bull market situation

Negatives: High Debt and capital intensive.

Result Analysis -
The hospital has done pretty well – delivering a 33% topline (turnonver) and 77% bottomline (net-profit) growth for FY13. Though our expectations for Q4 were more but nevertheless, the results are good. As the company hasn’t announced any major expansion, the peak debt may be behind us and now the company might focus on reducing the outstanding loans. Given their excellent cash flows, if the debt and the interest cost reduces (currently interest cost is more than reported net profits) the company should be able to deliver good profitability growth for the upcoming year. The debt equity ratio has corrected from 3.40 in FY12 to 2.29 in FY13. At CMP of about 175, the 700 bed hospital is available at a market-cap of 170 odd crores. [Related interesting reading on 150 bed Apollo expansion for Rs.120 crores].



Clear growth -

	Mar '14	Dec '13	Sep '13	Jun '13	Mar '13
Net Sales/Income from operations	86.54	85.71	82.88	78.89	74.25
Power & Fuel	--	--	--	--	--
Employees Cost	12.96	11.32	11.18	11.75	11.14
Depreciation	4.66	3.9	3.91	3.84	3.1
Other Expenses	26.3	27.47	27.03	26.02	24.25
P/L Before Other Inc. , Int., Excpt. Items & Tax	15.35	15.59	13.64	12.07	12.23
Other Income	1.41	1.07	1.14	0.99	0.95
Interest	5.61	5.93	6.13	6.27	6.45
net profit	7.06	6.97	5.48	4.21	4.76

As company has started taking steps in reducing debt, we will likely to see better margin and PAT going forwards. Further, company may take conservative expansion steps in coming year to expand their business in other cities. We remain positive on these stocks and with the 3-4 year long horizon views one can invest in the company for 20% annual return.

Weekly Update

Last week showered a lot of profit. Here's the evaluation.

1.  Dynemic Product- old recommendation here
     touched 40.4 Rs. on the recommendation of 34.9. We still recommend to hold for further gain.

2. wonderla holidays - old recommendation here
    Hits our final target of 220 Rs. today. Recommend to book partial profit and keep holding remaining quantity.

3. HSIL - Recommended for long term for the target of 233. 

   Hits 230. Recommend to book partial profit.

4. Avt Natural Product -old recommendation here

   Hits 52 week high 40.40. Recommend to take action after watching result.

5. Sicagen India - old recommendation here
   Hits 19.7 Rs. high in this week and company has come out with good dividend but poor set of numbers. Recommend to exit from this counter

6. Arss Infra - old recommendation here

    Hits 52 week high of 44.4. Still recommend to hold for much higher targets.

Enjoy the profit. Share your valuable feedback with us.

KPR Mill - result says it's a buy

Company Profile -

KPR Mill Limited is one of the largest vertically integrated Apparel manufacturing companies in India producing Yarn, Knitted Grey & Dyed Fabric and Readymade Garments. The Company has 'State-of-the-Art' production facilities in the State of Tamil Nadu, India.

The Yarn division has 3,53,088 spindles with a production capacity of 90,000 MT per annum. With the most modern machinery of International Standards, KPR produces Combed,  Grey Melange , Carded & Compact yarn meant for apparels of world’s Leading Brands. Fabric division is equipped with high speed automatic circular knitting machines that can knit 21,000 MT per annum of different kinds of fabric.  Its Fabric Processing unit has a capacity to process 9,000 MT per annum with trendsetter ETP.

The Garment manufacturing facility is one of the largest in India with a capacity to produce 63 million garments per annum. Inspired by customer delight and the desire to make innovative designs, KPR creates fashion trends for men, women and children. Vertical integration of manufacturing process enables it to customize products as per the client’s specifications with consistent quality assurance in a cost-effective manner. The Company has installed Wind Mills with a total generation capacity of 61.92MW of green power for captive consumption at Tamil Nadu to become 75% self- reliant in power needs.

Result update - 

In current quarter company has posted 12% revenue growth on qoq basis and 30% revenue growth compare to last year's same quarter. Company's PAT has improved drastically with 80% profit increasing. Consolidated EPS stands at 14 Rs. which is more than doubled than last quarter. With EPS of 37 Rs. on yearly basis company is currently available at attractive valuation. We strongly recommend to buy at CMP of 160 for the target of 200 in coming days.

sicagen india - must buy

Company Profile -

Sicagen India Ltd is India's leading provider of trading and marketing services for construction-related industrial and retail infrastructure. The company in engaged in the trading of building materials, such as mild steel (MS)/galvanized iron (GI) pipes, precision tubes, seamless tubes, rectangular/square hollow sections, construction steel including thermo mechanically treated (TMT) steel rebars, polyvinyl chloride (PVC) pipes, electrical cables, steel fittings and cement. They sell their building materials to dealers, contractors, builders, and corporate buyers; and commercial vehicles to corporates, retail vendors, and high income individuals. The company operates dealership of commercial vehicles for Tata Motors, ranging from the 0.75-ton Tata Ace to Tata Novus, with showrooms in Chennai and Tiruchirapalli, covering 11 districts of Tamil Nadu, India. In addition, they provides governor services; travel-related and cargo services; and water treatment and process improvement solutions. Further, the company builds passenger and cargo vessels, boats, tugs, and barges. Sicagen India Ltd was incorporated on June 11, 2004 as a public limited company. As per the scheme of arrangement, the Trading, Services and Coffee Plantation undertakings of Sical Logistics Ltd with all the assets and liabilities relating to these undertakings were de-merged and transferred to the company with effect from October 1, 2006. Also, South India House Estates & Properties Ltd became a wholly owned subsidiary company pursuant to the scheme of arrangement. During the year 2008-09, the company entered into a distribution arrangement with IMI Norgren Herion (P) Ltd, Noida for marketing of Norgren products such as cylinders, scoop tube actuators, solenoid valves, pneumatic accessories etc to State Electricity Boards and Captive Power Plants in 10 States. Thy acquired Speciality Chemicals during the year, which had their chemical plant is located at Pondicherry and produces eco-friendly speciality chemicals such as water treatment chemicals, radiator coolants etc. During the year, the company entered into a business transfer agreement for acquiring the drums manufacturing business located at Minjur, Chennai. This division manufactures Plain/Epoxy lacquer coated industrial type MS barrels. Also, they hived off their wind mill operations and coffee estates during the year. The company increased the existing shareholding in SDB Cisco India Ltd and thus SDB Cisco (India) Ltd and their subsidiary Modern Protection & Investigations Ltd became subsidiaries of the company with effect from March 28, 2009. During the year 2009-10, the Building Materials division obtained Super Stockistship from Tulsyan NEC Ltd to market TMT rebars in the Union territory of Pondicherry & South Arcot District of Tamilnadu and Stockistship from Dalmia Cements Bharat Ltd and Madras Cements Ltd to deal in different grades of cement. This division also bagged the dealership from SAIL for four more locations namely Secunderabad, Salem, Erode and Palakkad. Also, they obtained distributorship for Zenith Pipes in Karnataka and distributorship for Zuari Cements in Tamilnadu. During the year, the company set up one Woodward Authorized service facility at New Delhi. The Drums & Barrels division bagged an order from BPCL for supply of 20 gauge plain barrels. Also, they hived of their travel business during the year. In August 2010, the company sold their investment held in the subsidiary, SDB Cisco (India) Ltd to Innovative Salary Services and Payroll Advisory Pvt Ltd. The company is set to acquire Singapore-based Wilson Cables Pvt Ltd. The acquisition will help the company to enter into the Singapore market.


Political impacts-

Since Modi govt. is likely to be pro-infra and pro growth, the company will likely to perform better in coming quarters. In last quarter company has posted EPS close to 2.2 Rs. Further, company has an history of giving dividend about 1 Rs. which is at CMP of 17 Rs. close to 6% yielding. Current book value of the company is 103 Rs. which is one of the best in the respective sector. With EPS of close to 4 Rs. company is trading at the PE of 4 and we strongly recommend to buy this stock for the target of 25 in coming days.

avt natural products - buy

Company Profile -

AVT Natural Products, formerly A V Thomas Industrial Products, was set up in 1986 by the A V Thomas group, as a subsidiary of Neelamali Agro Industries, to set up a solvent extraction plant in Madhya Pradesh to process soyabean and oilseeds, and produce oilcakes. The company has set up a 200-tpd solvent extraction plant (cost : Rs 4.85 cr) in Madhya Pradesh to process soyabean and other minor seeds. It produces 56,500 tpa of de-oiled cakes for export. In 1994-95, the company launched its coconut oil in Karnataka and sunflower oil in Kerala. The company's oleoresin plant commenced commercial production in Sep.'94. It has also successfully set up an extensive agricultural extension facility to grow marigolds for extraction in the oleoresin plant. The company also exports tea. Due to uncertain conditions in the international market for marigold oleoresin the company is planning to diversify into the production of spic oleoresins.

Market mood-

Recently, market has started taking keen interest in undervalued midcap companies and due to the same reason, this company has a significant potential in making new highs. Qoq company's performance and PAT is increasing. Further, company has good dividend paying ratio as well. As, 29th May, result date is approaching, this stock will remain in the radar of traders and investors. At the CMP of 37 Rs. we recommend to buy this stock for short term for the target of 44.

weekly update

Last week was a bumper gain for our calls.

1. V-guard industries - old recommendation here
     touched today 600 and out target has achieved. We still recommend to hold for further gain.

2. wonderla holidays - old recommendation here
    Hits 186 lifetime high. Recommend to hold for the target of 220.

3. Sun pharma advance research company- old recommendation here
    Yesterday it hit 152. Hence, we covered our short. Cheers, big profits.

4. dynemic product - old recommendation here
    Stock has announced split from 10 to 1 Rs. face value. We will likely see more upper ckt in this stock. Recommend to hold.

5. Dhunseri petrochem - old recommendation here
    Stock hits 140 Rs. year's high. We will be seeing the levels of 158 in coming days. Recommend to hold.

Enjoy the profit. Share your valuable feedback with us.

dhunseri petrochem & tea - buy

Company profile -

Dhunseri Group is one corporate entity involved in multiple businesses. Its traditional business of tea is complemented by a growing demand for PET resin with IT infrastructure development as a stepping stone for the future.

Until 2008-09, Dhunseri Tea & Industries Ltd. 
(DTIL) was only engaged in tea production and
then it branched out into the other segments. 
Tea is one of the oldest businesses of the 
Dhunseri Group and has been the flag bearer
for the last five decades.

DTIL has widened its reach from eight estates
in  2003-04 to ten estates in 2012-13 in Assam.
As a result, the company is now one of the ten
largest tea  producers in India. The Company’s tea packaging 
and blending units are located in Dhunseri Tea Estate (Assam) and at Jaipur(Raj.). 
Dhunseri group has through its subsidiary; Dhunseri Petrochem & Tea Pte Ltd. 
recently acquired two tea estates in Malawi in South Eastern Africa with a production 
capacity of 94.50 lac kgs of tea. With this acquisition, Dhunseri Petrochem & Tea Ltd. 
has joined the elite club of tea companies, who have already made their foray in the
 overseas tea plantation business.

Dhunseri group, which started off as a tea producer, is now one of the largest producers of Polyethylene Terephthalate (PET) Resin in India. The group had promoted South Asian Petrochem Ltd (SAPL) in 1996 to setup a Greenfield PET manufacturing Venture. SAPL was amalgamated with DTIL with effect from 1st April 2009, with the objective to enhance scale, growth and sustainability. The result was the creation of Dhunseri Petrochem & Tea Ltd. (DPTL) (gross revenues in the range of ₹ 2,500 crore in FY 2012-13). DPTL operates two PET resin plants in Haldia with a consolidated production capacity of 4, 10,000 TPA.

Dhunseri group is also in the process of commissioning a PET Resin facility in Egypt
through its subsidiary Egyptian Indian Polyester Company S.A.E. (EIPET) with an estimated
investment of approx USD 170 mn. Decision to invest in Egypt is based on factors
like Egypt’s strategic location, proximity to markets in Europe, Africa and Asia, availability
of skilled human resources, easier access to raw material sources. EIPET will also benefit
from savings in freight cost.The 10 year old PET resin business of Dhunseri group is on the
verge of quadrupling after sustained efforts since inception.

The group is also in the process of 
foraying into the third business of annuity
 income through the development of IT 
infrastructure. The company has started
the development of an IT complex at Bantala
 (located at the outskirts of Kolkata) to be built
 in two phases.

DPTL is headquartered in Kolkata (West Bengal). 
The Pet Resin factory is situated at Haldia and the tea gardens & factories are located in
Assam. The Board of Directors of DPTL comprises personalities of repute, achievement
and standing. Mr. Chandra Kumar Dhanuka is the Executive Chairman and Mr. Mrigank
Dhanuka is the Vice Chairman & Managing Director of the company.

Current movement-

Today stock has provided breakout with heavy volume around 123 and it has formed
stable base at 120 Rs. before moving further. Hence, in coming days we will likely to see
the levels of 160 rs. provided it will sustain the support of 120. We recommend to buy at 
CMP of 130 for the level of 160.

wonderla holidays is a buy

Wonderla Holidays Limited:

Wonderla Holidays Limited operates two largest amusement parks in Bangalore and Kochi under the brand name Wonderla.

Wonderla – Kochi Established in the year 2000, Wonderla Kochi (formelrly Veega Land) is an amusement park that lent a new dimension to tourism in Kerala. Tucked away in a lush green hill, this beautiful park which crossed the 1 Crore visitor mark this year, has 54 land, sky, water kids rides is built to international standards and impeccably maintained. The first park in India to get ISO 14001 certified for eco-friendliness and OHSAS 18001 certified for safety, the popularity Wonderla Kochi enjoys as a family fun destination is truly phenomenal!
Wonderla – Bangalore Wonderla – Bangalore, India’s favourite amusement park, is located on Mysore Road, just 28kms away from Bengaluru city. Nestled in 82 acres of lush greenery, Wonderla, established in the year 2005, has 54 thrill packed rides, offering a monster dose of entertainment and fun for all age groups. Having entertained more than 50 Lakh visitors in 6 years, Wonderla Bangalore is all set to become a one-of-its-kind holiday destination with the inauguration of Wonderla Resort- a luxury resort built right inside the park- in April 2012. Promoters- V-Guard  V-Guard Group, the promoter of Wonderla Holidays Ltd, is one of India’s top electric and electronic consumer products brand. Founded and guided by the charismatic visionary Kochouseph Chittilappilly, V-Guard today is a household name, manufacturing a host product including Stabilisers, Water Heaters, Solar Water Heaters, Pumps, UPS, Digital Inverter & Battery, Fans, Wiring Cable, Industrial Cable & Induction Motors. With over 9000 Retailers and 150 Distributors across the Country, V-Guard got listed with NSE in the year 2008. The company is in niche segment of recreation and amusement park facility. As Indian tourism is on growth, the company has huge potential in future  to grow it's revenue and profit after expanding in other locations of India. As per research team, the CMP 168 Rs. of wonderla is cheaper and we can expect 30% surge in the price in coming 6 months. We recommend to buy at CMP for the target of 220 Rs.

weekly update

1. Ajanta pharam - recommended price 1038 - CMP 1085. Recommend to hold

2. insecticides - Recommended price 275 - CMP 284. recommend to hold

3. vimta labs - recommended price 110 - hits all time high 134. recommend to exit.

4. HSIL short - recommended short at 187. hits 176 yesterday. (target achieved).

5. Rssoftware - recommended at price 207. CMP 187. (currently in bearish but overall long term trend is positive) - recommend to buy on dips at the level of 182 and 168.


Enjoy out calls and profit and don't forget to subscribe.

Ajanta pharma is a buy at CMP

Company profile-

Ajanta Pharma is a specialty pharmaceutical company engaged in development, manufacture and marketing of quality finished dosages in domestic and international markets. Established in 1973 and headquartered in Mumbai-India, they are committed to 'Serve Health Care Needs Worldwide'. Ajanta has been consistently providing high quality affordable medicines to patients in different parts of the world.

they employ over 4,000 people worldwide and their products are sold in over 40 countries. Ajanta operates with 5 state-of-the art manufacturing facilities that produce high quality pharmaceutical products. they focus on commercializing unique generic products and pioneering synergistic combination products in the therapeutic areas of anti-malarial, Cardiovascular, dermatology, male erectile dysfunction, musculoskeletal, and ophthalmology.

In India, they have significant presence in the fast growing specialty therapeutic segments of Cardiovascular, dermatology, ophthalmology and musculoskeletal. With primary focus on new product innovation and introduction, they have been consistently identifying unmet medical needs and introducing many first-to-market products to cater to those needs. their products provide patient compliance and convenience over existing therapeutic options. Gaining first mover advantage, many of their brands hold leadership positions in their respective sub- therapeutic segments.

Ajanta has extensive presence in many countries in Asia, Africa and Latin America with customized product portfolio to suit the needs of each country. Having successfully gone through USFDA inspection, they have started commercial operations in the US market in the first quarter of 2013. With a portfolio of 23 ANDAs which have been filed with the US FDA, they look forward to the US market to be their key growth driver in coming years.

they have an advanced Research & Development Centre for finished formulations and Active Pharmaceutical Ingredient (API) synthesis of different dosage forms. ‘Advent’, their R&D centre has a team of over 300 scientists working on innovative products for various markets across the globe. they have acquired strong capabilities for developing generic formulations and process chemistry over the years.

Committed to patient care since inception, their focus on specialty segments in India and simultaneous opening of new international markets has been accelerating their growth over the years. Ajanta’s team members are driven to fulfill its mission; a commitment to ‘Serving Global Healthcare needs with Empathy, Innovation & Technology’. 


Performance- 

Company is continuously improving it's result which is getting reflected in stock price. In last quarter company has posted 311 crs. revenue and 70 crs profit. With the EPS of 20 rs. in a quarter, company  will continue to post overall EPS of more than 75 Rs. per year. Comparing current market price of 1038 Rs. company is ruling at 14 PE which is significantly undervalued respect to other peer companies. We expect company has huge potential going forward and we will likely to see the levels of 1400 in coming 6 months.

Insecticides India long term bet

Company Profile -
Insecticides (India) Ltd. Is committed to fortify Agriculture with a highly productiveand progressive vision and mission to make Indian Farmers prosperous. Having made a modest foray into Indian Agriculture Space in 2002, today Insecticides (India) is one of the premier names in Crop Protection Industry. Today with more than 110 formulation products and 15 technical products, Insecticides (India) manufactures all types of insecticides, weedicides, fungicides and PGRs for all types of crops and household.

Our International Tie ups with Nissan Chemical Industries Limited, Japan for products like Pulsor and Hakama and technical collaboration with AMVAC, USA for Products like Thimet and Nuvan corroborate our efforts to make agriculture rewarding for Indian Farmers.
                                       
Today our Tractor Brand Range of products like Lethal, Victor, Thimet, Monocil,Pulsor and Hakama are the choicest brands of every farmer.Another feather in the cap is setting up of a R&D facility in India in Joint Venture with a Japanese company OatsukaAgri Techno Co. Ltd., which will aim to invent new agrochemical molecules for global markets in India.
                                       
With 4 state-of-the-art ultra-modern Formulation plants, 2 multi stream Technical Plants and 20 depots spread across the length and breadth of the country, make it possible to make the products reach to its end consumers.
                                       
Insecticides (India) takes pride in mentioning that one of the major strength is the channel partners which include about 4000 distributors and 50000 dealers, who have always formed the face of the company and played a vital role in smooth operations of the company.


Current valuation-
Company has poste full year EPS close to 29 Rs. and hence currently it's running at the price of 10x of it's EPS. It is very cheap at current valuation with compare to Rallis, Monsanto , Advanta. Further, FII holding has increased in the company in last three months. We are expecting company to post 8 rs. EPS in current quarter which will boost the share price and investor confidence in the company. Hence, we recommend insecticides at CMP of 275 for the target of 340 in long term.

Vimta labs update

Vimta labs hits today 127.8 after our recommendation at 110 today in the morning. Almost 16% gain in a day...Enjoy the ride and don't forget to subscribe and follow our calls. 

Vimta labs short term buy

Vimta Labs is India’s leading contract research and testing organization.  Established in 1984 VIMTA has an envious track record of serving several market leaders across the globe.VIMTA is a team of 748 professionals comprising 433 scientists in various disciplines such as Chemistry, Pharma, Medicine, Microbiology, Molecular biology and Informatics. The team is slated to double in next three years.VIMTA is a multi-site organization with more than 300,000 sqft world class laboratory facilities.The technologies deployed at VIMTA are current and leading edge, duly validated.

The company has started growing their balancesheet from september 2013 and from there on they have increased their profitability significantly. 30 Crs. of revenue and 4 crs. of profit in every quarter makes an EPS of 1.8 in each quarter. Considering the same performance going forward , at CMP of 109 company is ruling at the PE of 15. Most small cap pharma company rules around 20 PE. Further, one positive factor is promoters have increase their stake in the company which shows that they have faith in their business model. With this in mind, we initiate buy call on vimta labs for the target of 140 Rs.

RS software - long term buy.

Company profile - 

Incorporated on 2 Dec.'87, public in 1992, R S Software was promoted by R R Jain, West Bengal Electronics Industry Development Corporation, Technology Development & Information Company of India and Risk Capital & Technology Finance Corporation. The company produces customerised commercial application software as per specific needs and requirements of customers. The company came out with a public issue at a premium of Rs 10 in Mar.'94 to part-finance the project of developing offshore software jobs at its existing hardware set-up in India for clients abroad. R S Software and Hanover Direct of the US have joined hands to set up a joint venture company in the US with the US partner holding 60% of the equity and RS Software 40 %. It acquired ISO 9001, international hallmark of quality in Jul.'94 from KPMG, US. The infrastructure for the satellite link between Calcutta and California was completed in Nov.'95. Its range of activities include on-site consultancy, offshore projects and software products. In 1996, the company entered into a strategic alliance with Software AG, Germany to bring their global solutions into India. It also entered into an alliance with Millenium Dynamics Inc. USA. The company has developed capabilities in the areas of client/server and object oriented technologies.The company is executing projects using Internet and New Technology Group technologies. In Nov 2000, it achieved global benchmarking in the area of best quality practices and accreditation level-3 of People Capability Maturity Model (PCMM). The Company set up its second subsidiary in UK - R S Software (UK) Ltd. to strengthen the marketing arm to reach to the clients in Greater Europe.


Result impact -

Company has posted decent  result with 12 Rs. EPS in current quarter and management is bullish with their upcoming performance. If company can continue with their performance of 12 Rs. then it will make whole year EPS to 48 Rs. With the CMP of 207 Rs. company is ruling at PE of 4 which is lower for medium cap IT company. We can expect company to rise from here in next 3 months for the target of 250+. 

Dynemic products a good buy

Details about the company-

Dynemic Products Ltd is one of the major manufacturer and exporter in India, offering complete range of Food Colors, Lake Colors, Blended Colors, FD&C Colors & Dye Intermediates. The company has wide applications in food industry, cosmetic industry, pharma industry, Ink and edible ink industry. They manufacture major Raw Material (Dye Intermediates) of Food Colors at their own to ensure that the Food Color produced from them is as per highest Quality Standards. The manufacturing facilities of Dynemic Products Ltd are certified with HACCP & ISO 9001:2000. Dynamic Overseas (India) Pvt Ltd is the subsidiary of the company. Dynemic Products Ltd was incorporated on June 14, 1990 as a private limited company with the name Dynemic Products Pvt Ltd. The company was promoted with the objective of carrying on the business of manufacturing S P C P, the raw material for Food Color, Reactive & Ramazole Dyes. They acquired on lease a plot in GIDC Estate at Ankleshwar admeasuring 1888 sq meter for this purpose. In January 1993, the company was converted into public limited company and the name was changed to Dynemic Products Ltd. In the year 1997 the company acquired on lease two additional plots in GIDC Estate both admeasuring 1888 sq meter. In the year 1999, they started their export sales. They obtained the export order from PT Dyestar- Indonesia. In the year 2000, the company acquired the business of Saffron Dye Stuff Industries and started manufacturing wide range of food colours at Ankleshwar. During the year 2000-01, the company commenced manufacturing of food colour namely Tartrazine at Unit I. In the year 2002, the company obtained 14001:1996 certificate of registration for their Unit II at Ankleshwar. They won the Second Award for Indirect Export of Self Manufactured Dyes for the year 2001-02 by Gujarat Dyestuffs Manufacturers' Association. In the year 2003, the company obtained HAACP Code: 2003 certificate of registration. In the year 2004, they obtained ISO 9001:2000.certification. During the year 2004-05, the company acquired 60% shares of Dynamic Overseas (India) Pvt Ltd and hence Dynamic Overseas (India) Pvt Ltd became the subsidiary of the company. The company's two manufacturing units got the status of EOU from Kandla Special Economic Zone. In June 9, 2005, the company incorporated a subsidiary company, namely Dynemic USA Inc, to expand geographical as well as their product coverage and capture the opportunities to develop market of their products in USA. In January 2006, the company came out with the Initial Public Offer and their shares were listed on The Bombay Stock Exchange Limited (BSE) in February 2006. During the year 2008-09, the company completed the expansion programme and thus increased the total production capacity from 1980 MT to 5700 MT. Also, they started the commercial production during the year. During the year 2009-10, the company initiated to develop D&C Colors (Colors that are used in Drugs, Hair Care, Cosmetics, Personal Care) & InkJet Dyes (these are used in producing Inks for Printing with InkJet Nozzle on various sunstrate like, Leather, Various Textile Products, Food & also for producing Ink for Computer Printers, Writing Ink, Marking Ink, Finer Liner Ball Point Ink & other Ink Industries). The Company is eyeing to start production of these products in near future.

Promoters impact- 

Recently, company has posted a decent growth from last year with PAT almost touching 200% from last year's quarter. Further, company promoters have shown strong faith in their performance by buying 200000 shares from open market with the range from 31-36 Rs. We expect to post a decent result from company this quarter as well. With EPS of 9-10 rs. for the full year, the company is quite undervalued as it's currently at the PE multiple of 3-3.5.With significant growth of order books,we expect company will continue it's spectacular performance in coming quarters. Hence, it's a strong buy at the current level of 34.9. 

V-Guard short term long term buy

Although V-Guard started as a small voltage stabilizer manufacturer in 1977, the company has grown and upgraded its product profile to include UPS, inverters, batteries, cables and switchgears. Over the years, it has also launched several electrical and electronic appliances such as mixer-grinders, induction cookers, solar and electric water heaters, fans, motors and pumps. 

While the economic slowdown has reduced the demand for consumer electronic and electrical products, the demand for products like UPS, inverters, batteries, stabilisers and solar water heaters has risen due to the ongoing power crisis. V-Guard already has 51% share of the stabiliser market. To reach the top position in solar water heaters, it has recently increased its production capacity by 90,000 units per annum by investing Rs 18 crore.

After establishing itself firmly in southern India, V-Guard now plans to expand to other markets. The steps it has taken in this regard have also started yielding fruit. The revenue contribution from the non-southern regions rose from 5% in 2007-8 to 25% in 2012-13. Though the higher advertisement costs for the non-south regions have put some strain on its margins, analysts believe that the margin contraction is temporary because V-Guard has broadly completed the work for distribution reach and will now focus on increasing the revenue per distributor. Since the average revenue per distributor in nonsouthern markets is only Rs 2.5 crore compared to Rs 7.5 crore in southern markets, there is good scope for expansion of business from the non-southern regions on existing investments.

Though V-Guard may look expensive if one follows the historical PE analysis (see table), analysts believe that the higher valuation is justified because of higher growth. As per the consensus estimates, V-Guard's revenues and net profit are expected to grow at an annualised rate of 23% and 30% respectively between 2012-13 and 2014-15. Due to factors like its strong brand in the south and faster growth in non-southern markets, strong cash flows, improving margins and diverse products, V-Guard is a good long-term bet.

Result impact

vguard- q4 earning has soared 120% on the basis of cost cutting. Company has always posted decent earnings with continuous top line and bottom line improvement. With the strong result the stock is best pick from the current level of 492 and we will see the level of 600 in coming days.

AARTI DRUGS A long term bet

Aarti Drugs Ltd is one of the leading pharmaceutical manufacturers in India. The company is engaged manufacturing of pharmaceuticals. ADL operates in the anti-diarrhea, anti-inflammatory and anti-biotic therapeutic segments. They manufacture vitamins, anti-arthritis, anti-fungal, antibiotics, antibiotics and angiotensin converting enzyme (ACE) inhibitors in their manufacturing units located at Tarapur and Sarigam. They are having their R&D center at Tubhe, Navi Mumbai The manufacturing units of the company are GMP certified. Their products include active pharmaceutical ingredients, steroids, pharmaceutical intermediates, and specialty chemicals, such as benzene sulphonyl chloride, benzene sulphonic acid/ ammonium/ sodium salt and benzene sulphonamide. They are having one subsidiary company, namely Suyash Laboratories Ltd. Aarti Drugs Ltd, a part of Aarti Group of Industries, was incorporated in the year 1984. In the year 1993, the company implemented the second phase of their backward integration project and set up facilities for glyoxal (the main raw material for imidazoles). During the year 1994-95, the company commissioned a plant to recover and market ammonium sulphate derived from plant effluents. Also, Rupal Chemical Industries, a group company, was amalgamated with the company. During the year 1996-97, the company started their production of secnidazole and dichlofenac sodium. During the year 2000-01, they started the commercial production of Pharmaceutical Ingredients. During the year 2002-03, the company expanded the production capacity of bulk drugs by 598,000 kg to 17,430,000 kg. During the year 2003-04, the company further expanded the production capacity of bulk drugs by 588,000 kg to 18,018,000 kg. During the year 2004-05, the company started commercial production at their newly setup intermediate plant at Tarapur. During the year 2005-06, the company increased the production capacity of Pharmaceutical by 2,325,000 kg to 24,020,000 kg. They entered into joint venture with Chinese company engaged in Active Pharmaceutical Ingredients (APIs) manufacturing and formed Huanggang Yinhe Aarti Pharmaceutical Company Ltd for manufacturing and selling of APIs in China. Also, they acquired controlling stake in Suyash Laboratories Ltd so as to make the said company a subsidiary of the company. During the year 2006-07, the company increased the production capacity by 570,000 kg to 24,590,000 kg. During the next year, they increased the production capacity by 399,000 kg to 24,989,000 kg. During the year 2008-09, they further increased the production capacity of Pharmaceutical by 50,000 kg to 25,000,000 kg. During the year 2009-10, the company carried out research and development work/ process improvement work in bulk drugs, such as antihistaminic/anti-allergic, anti-inflammatory and anti-diabetic. ADL has sold/exported intermediates, such as Stage-I of pioglitazone and AU-% for tamsulosin. They expanded the production capacity from 25,000,000 kg to 25,716,000 kg. The company is expanding their production capacity in various products-lines to cope up the demand. They are also in the process of acquiring ISO 9002 compliance for all their units.

Result impact - 
If we see purely fundamentally then this stock has posted a result of 18 rs EPS in this quarter considering this quarter is always good for pharma companies, we will likely to see yearly EPS is around 60 Rs. Company is handsomely paying dividend rs. 10 for the whole year and posted 2 fold jump in the profits.

At the price of 377 its still cheaper and we recommend to buy at CMP for the level of 500+ in coming days.