Pioneer embroideries - coming on track

About Company - 

 Pioneer Embroideries Ltd is India's largest manufacturer - exporter of Embroideries, Bobbin laces, Raschel laces and other garment accessories. PEL owns the No. 1  retail brand Embroidered clothings named "Hakoba".  The company have seven manufacturing units spans 5 states from Tamil Nadu to Haryana. Apart from the domestic sales PEL exports its products to Latin America, North America, Europe, Africa and the Middle East. 

Why to invest into it?

1. Company is showing growth potential -

The company's top-line growth is satisfactory since the past decade and unfortunately its bottom-line is not so. In 2008 (up to 2008, PEL having a regular dividend paying track record), to meet the financial requirement for setting up a Dope Dyed Polyester Yarn (DDPY) division, the company had issued FCCBs for $30mn, which were proposed to convert into shares but not happened that because of the sharp fall in its share prices on account of the Global financial crisis. (In fact just $2 mn converted in 2008, $16 mn restructured in FY 2014 and $11 mn was pending). Recently, the company had bought back the remaining FCCBs. It has settled the defaulted dues with ICICI bank by one time settlement. As per the CDR package instruction, in March, 2013 the promoters of the company  had subscribed 1651978 shares at Rs. 21.22 per shares and another 3125948 shares at Rs. 19.77 per shares to aggregate  Rs. 9.7 crore. Last week PEL has completed the OTS with State Bank of Patiala. So it is clear that the company management is confident with the company's overall growth in the coming years.

2. Well known brand -

 -  - The word itself conjures up images of embroidery. Not surprising coz over the years  has become synonymous with embroidery. Infact it is one of the most respectable brands in the country (with its fame spread overseas as well) and enjoys a heritage brand status.  is also documented in the Indian fashion industry.

3. Bottom line will improve fast -  

Finance cost reduced considerably in the first HY of the current FY. We believe the trend will continue in the coming quarters, once it fully settled the dues as per the schedule and arranged the low cost fund. We hope that the company's financial performance, especially in the bottom-line will considerably improve in the future and it would reflect in its stock price too.

palred technologies - E commerce benificiary

About the company -

Palred Technologies is operating with the objects of building multiple verticals in IT and IT related businesses postsale of the core business in October 2013. These new domains of business will include IT services, Software solutions for Media & Entertainment Business, online businesses such as etailing, online financial services portals, and online entertainment. In addition they are also exploring direct entry into Media & Entertainment domain. They have acquired and plan to continue to acquire a lot of IP, content, technology, knowhow and perhaps operating businesses to be able to get a start into these verticals as they do not possess these internally in the company. While systems and processes are being implemented, to commence these business operations, trial run of latestone.com is in progress.

Why to invest?

1.       Ecommerce business –

     We have seen Just Dial and other e commerce business (unlisted entities like flipkart, snapdeal and cab aggregator business like olacabs) are getting lots of funds from private players. Since palred is gearing up for compete in the same business, there will be enough room for business to grow considering demand in India.

2.       Excellent Management Record –

Palam Srikanth Reddy, founder of Palred did BE from REC Trichy and M.S from Stanford, US. He worked as Logistics Manager at HP,Singapore and rose to become MD, Emery Worldwide India (Now UPS). He founded Foursoft and sold off Foursoft (dealing in logistics software) to kewill Group and gave shareholders extreme reward in terms of 29 Rs dividend.

3.       Financial Performance will improve with right acquisition –

During the year under review, your Company has acquired on January 8th 2014, Deals15.com from Premium Web Services which provides internet services and software services/solutions to business to business e-commerce and website development for the purpose of business operations in online e-commerce as it is being emerged as a profitable area of business and it would be an effective way to initiate the business post sale of Four Soft Limited.

We believe company can do wonders if there are good management with enough growth in business, since in the past management has shown the same, we do not wish to miss the opportunity to catch the company in its infant stage. Hence, we initiate a positive recommendation on the company with the target of 35 Rs.

adcc infocad - SME stock - potential multibagger

Company Profile - 

ADCC is a global leader in serving geospatial and information technology domain to facilitate the professionals with customized solutions for versatile engineering domains. 

ADCC to cater to the GIS industry and has emerged as global Premier Software Solution provider through its Alliance with World Leaders like 

• Autodesk Inc. USA world‘s one of the biggest Design Content Company, 
• Mathworks (Matlab), 
• Dassault (Catia), 
• Adobe, Digital Globe India & Africa (High Resolution Satellite Imageries), 
• Integraph (Erdas Imaging & LPS Software and extensions) 
• Siemens, 
• Sanako (Language Lab), 
• National Instruments (Experiential Engineering Laboratories), 
• ESRI (GIS mapping Solution, Software , Services).

 ADCC has developed and improvised GIS solutions, to design & to capture, store, manipulate, analyze, manage and present all types of geographical data and has developed domain expertise in the fields of GIS, Remote Sensing, LiDAR (Light Detection and Ranging), Photogrammetry, Energy System and solutions, Engineering Design Services, Surveys and Customized Application Development, with requisite human resource of 1400+ professionals that include geologists, engineers, designers and 3D modelers and spread across 3 continents encompassing 5 countries.

Not limiting to only GIS they provide integrated solutions in fields like

• Education Software Solutions
• Energy Solution & Services
• Industry Software Solutions
• Design & Animation
• SEO
• Software Development
• Engineering Design Services

It has main base at Nagpur and branch offices across India at Mumbai, Pune, Hyderabad, Ahmedabad, Lucknow, Company has marked its global market presence through its overseas subsidiary offices in Africa- Nairobi (Kenya), the Company boasts the state-of-art infrastructure at Nagpur with ultra modern IT Systems for Data Security and Integrity.

Why to Buy?

1. GIS market is increasing - 

We believe there's a lot of integration on going with data mapping and related services. GIS mapping is one of the key area which has yet not fully unfolded and there's a huge untapped market in this field. With new management ADCC can grab chunk of market share by spending on latest technology and hardware products.

2. Digital revolution by govt. of India - 

In a way, Govt. of India digital marketing will also impact GIS services in a direct or indirect way. Though we may not see these effect in initial stage, but we can't deny the potential that is out there. Further, they are already providing solutions to some of government agencies. Hence, future projects on analysis of digital revolution by govt. of India will help company to grow.

3. Robust growth - 

During the last five years AIL has reported steady growth

Hence  by looking at the potential we maintain our positive stance on the script. The script is traded in BSE SME and normal lot size of the stock is 3000.