Indo count industries

Indo Count Industries Ltd (ICIL) was incorporated in 1990. It has two main business division’s textiles and electronics. In 1990’s company only manufactured cotton yarn. In 2004, ICIL diversified into electronics business, where the company undertakes contract manufacturing (assembling) for large number of electronic brands like LG, Onida, BPL, etc. In 2007, the company expanded its textiles business by venturing into home textiles.It exports textile products to US and European markets.


KEY HIGHLIGHTS

Company under Corporate Debt Restructuring scheme ICIL incurred huge losses on forex derivatives over the years during 2007 to 2010 causing significant erosion of its net worth. This led the company into Corporate Debt Restructuring scheme. ICIL revalued its assets to the tune of Rs 1,509 million and Rs 212 million in 2008-09 and 2009-10 respectively, as one of the requirements under CDR scheme. Although it continued to make losses at the net level, the quantum of losses reduced as interest costs fell in 2009-10 due to restructuring of debt Integrated across the textile chain ICIL, initially present only into cotton yarn business, forward integrated into fabric and textile business in March 2007, wherein it is involved into manufacturing of knitted/woven fabric, and exporting of the same. An established client base, sourcing from captive yarn production and an increase in outsourcing from international players has boosted the company’s revenues.And we are on the right track in 2013 as rupee continue to depreciate which helped company to earn better margin in export oriented business.

In the FY13 company has posted 7 rs revenue. However, as export business continues to do well, company posted EPS of 17 rs in half year of FY14. Looking at the revenue to be remain in the same range in coming quarter, company is significantly undervalued.

TARGETS

As we are seeing lots of improving in the balance sheet, we can safely assume the targets of 105 and for risk takers can easily hold the stock for the target of 120+. Hence, we recommend a buy at the CMP of 87 Rs.

ajanta pharma, granules india, kpr mill, kovai medical, dynemic products, aarti drugs, plethico pharm update

Ajanta pharma old recommendation here. 
Hits 1500+. 
Recommend to hold for longer term view.

Granules india old recommendation here.
 Hits 466
Recommend to hold for longer term view.

Kpr mill old recommendation here.
Long term investor can hold for higher returns.
short term  investor book partial profit.
 
Kovai medical old recommendation here.
Long term investor can hold.
Medium term investor can book profit.

Dynemic products old recommendation here.
Hits 52 week high 43.8
Updating for the target of 50+.

Aarti drugs old recommendation here.
Hits 52 week high 548.
Recommend to book partial profit.

Plethico pharma old recommendation here.
 hits 74.
Recommend to book full profit and exit.

Enjoy profit with us...

Manjushree Technopack Ltd. Buy

MT is a packaging solutions provider with an experience of two and a half decades in providing its customers with cutting edge plastic packaging solutions.

Few positives:

• MT has been growing at CAGR of almost 25% for last 5 years. This growth rate is expected to continue for next few years based on the aggressive expansions the company has been undertaking. The company has been tying up with the top MNCs
• MT has an impressive client profile : Cadbury, Nestle, Coca Cola, P&G, Bisleri etc
• MT has been able to maintain very good operating margins and able to expand the same with increase in turnover. The other good things are its strong balance sheet – reasonable debt equity ratio, control over debtors and inventory to get strong cash flow.
• As per the recent announcements, the company has tied up with Coca Cola & Bisleri and is putting up exclusive capacities to cater to their requirements. As per the arrangement, the offtake will increase 50% every year.
• MT is also targeting to cater to the liquor industry and has tied up with likes of UB Group, Radio etc.

Attractive Valuations:

• At CMP of Rs. 263.50, the stock is available less than 13 PE.
• Co is a regular dividend paying company & had paid 10% dividend last year.

Expectations:

• We expect MT to continue to grow @ 20-25% for next 2-3 years.
• For FY 2014, MT may be able to deliver 500-550 Cr turnover resulting into a NP of 40-50 Cr. Hence an EPS of 25-30.
• Hence, company can continue to grow with advance of business. We expect it to deliver 20% return on YoY with target of 320. Hence, we recommend to buy it.

Insecticides india Update

Old recommendation here.

Hits 400+ in this week. Recommend to book partial profit.

RS Software Update

RS software recommended here
Completed it's first target by hiting 250+. 
Recommend to add on dips.

Biocon Ltd. Buy

Company Profile - 

Biocon Limited is an Indian biopharmaceutical company based in Bangalore^{[ref 1]} Within biopharmaceuticals, the Company manufactures generic active pharmaceutical ingredients (APIs) that are sold in the developed markets of the United States and Europe. It also manufactures biosimilar Insulins, which are sold in India as branded formulations and in both bulk and formulation forms. In research services, Syngene International Limited (Syngene) is engaged in the business of custom research in drug discovery while the other fully owned subsidiary Clinigene International Limited (Clinigene) is in the clinical development space. In December 2009, Biocon acquired the Active Pharma Ingredients (API) undertaking from IDL Speciality Chemicals Ltd., a subsidiary of Gulf Oil Corporation Limited.

Located with R & D in Bangalore and API unit in Hyderabad, India, Biocon has two subsidiaries— Syngene, a custom research organisation, and Clinigene, a clinical research organisation. Biocon’s presence straddles four main therapeutic areas—Diabetology, Cardiology, Nephrology and Oncology— and plans to introduce two new divisions, Comprehensive Care, and Immunotherapy, this year.

Biocon’s cardiology, nephrology, diabetology and oncology products including BESTOR, BASALOGTM, BioMAb EGFR, STATIX, NUFIL safe, INSUGEN, TACROGRAF, ERYPRO safe, and MYOKINASE are claimed to be considerably less expensive than other leading brands.^{[ref 1]} Two of its novel programs on the verge of proof-of-concept stage are IN-105, which is the only oral insulin in the world to be in long duration clinical trials, and the T1h, a novel humanised monoclonal antibody (MAb), the only first-in-class novel MAb being tested in India for rheumatoid arthritis and psoriasis.

Between 2005 and 2010, Biocon entered into more than 2,200 high-value R&D licensing and other deals within the pharmaceuticals and bio-pharmaceutical space.^{[ref 1]} It has also expanded its global footprint to emerging and developed markets through acquisitions, partnerships and in-licensing. Biocon’s Corporate Social Responsibility wing, the Biocon Foundation, is involved in numerous health and education outreach programs targeting the underprivileged sections of India.

Stock valuation - 

“Biocon delivered 16 percent revenue growth for the year ended March 31st, 2014, stood at Rs. 28773.1 mn as compared to Rs. 24853.0 mn in previous year. For the year 2014, Group EBITDA and PAT margins at 25 percent and 14 percent respectively. R&D investments for the year ended stood at Rs. 1310 mn (6 percent of Biopharma Segment sales). The biopharma segment delivered a growth of 14 percent YoY and 15 percent YoY for FY14 and Q4 FY14 respectively. The research services segment grew at 28 percent YoY in FY14 and 14 percent in Q4 FY14. The Company’s generic Insulins portfolio has delivered strong growth this fiscal. Company’s generic rh-Insulin is now approved in over 55 countries. Biocon Malaysia project is on track to be commissioned in FY15. The branded formulations vertical grew at 9 percent YoY this quarter, vis-à-vis the industry growth of 7 percent YoY, delivering revenues of Rs. 930 mn in Q4 FY14. The Company has launched trastuzumab product, CANMAb® in India in Q4 FY14. Biocon continues with the clinical development of their novel oral insulin molecule, IN 105, in USA, in partnership with BMS. The company sustained focus on optimizing their product portfolio in Small Molecules has helped to deliver a healthy set of numbers this fiscal. Biocon has witnessed good business traction in Immunosuppressants and specialty products and expect it to sustain in FY15. We expect FY15 to reflect continued business momentum with biosimilars, branded formulations and research services driving growth. The progress in Company’s development pipeline (across biosimilars and novel molecules) will see some of their molecules enter the clinic. Biocon continue to make investments in infrastructure and people to support their growth. Hence, we recommend ‘BUY’ in this particular scrip with a target price of Rs. 534.00/ 568.00 for medium to long-term.

ARSS infra update

herehere

ARSS infra recommended at 29 has reached 62.7 today.
Old recommendation here. 
Advise to book partial profit in this counter.

well check this

Mold-tek packaging - bright future ahead

Company Profile - 

The company is the leader in manufacturing plastic packaging products including pails.  It specialists in both standard and made to order packaging solutions for industries like paints, lubricants, cosmetics, pharmaceuticals etc.

In a new development the company is venturing into providing packaging solutions for ice creams by making tubs for packing ice creams and orders for the same have started from players like Baskin Robbins and other ice cream brands.

The company has for the first time in India introduced In Mould Labeling (IML) decorating system to expand the product range.

Investment theme -

Recession proof, high dividend paying, good growth, market leader.

Financials -

In the March quarter company has posted revenue of 68 crores and EPS of close to 2 rs. for the quarter. Every quarter company is posting decent numbers and close to 5% growth in revenue numbers. As company has very good brand like Amul and Castrol in their hand, they are likely to improve their margin in coming quarters. Further, promoters and FII both are buying the quantity of this stock as it looks cheaper from their competitors. With 3 Rs. dividend paying on YOY and 8 Rs. of EPS company is ruling at PE of 8 at CMP of 64. We recommend to buy for the short term target of 84.