stocks query

Dear All

I got some good shares in Shivalik biometal controls and as well in CHD developers. Can we expect any growth in these in nearby future. I am in negative on both.

phani

 

Why you bought such stocks? never heard of these names. I will research and see potential of stock but what other stocks do you have in portfolio? Also can you explain reason for buying these stocks? Is it based on tip or own research? Any research reports are there of broker?

 

Hi Sir,

Thanks for immediate reply.
earlier thru my broker recommendation bought shivalik biometal and thru friend CHD developer, apart from these i do not have any other stock.

 

OK I will do some research on subject and check prospects of stock. In future you must check prospects of stock first and then invest. Not this way that you invest first and go to check prospects of stock when there is loss.

 

Here is the data on Shivalik BiMetal Controls:

Incorporated in Jun.'84 as a private limited company, Shivalik Bimetal Controls was converted into a public limited company in Feb.'85. The company is promoted by P S Gill and N S Ghumman. The company has a plant at Chambaghat (Solan district), Himachal Pradesh, to manufacture thermostatic bimetal strips (inst. cap. : 80 tpa).

This was the first plant in Asia outside Japan to undertake the manufacture of such a sophisticated item. It had a technical collaboration with Polymetallurgical Corporation, US, for a period of five years, which has now ended. It also manufactures components which use thermostatic bimetal strips.

In 1995, the company embarked upon a diversification programme to manufacture thermo bimetal components for miniature circuit breakers, overload thermal relays and colour picture tubes. It came out with a public issue in Jun.'95 to part-finance the project.

During 1998-99, the company set up a facility to manufacture snap action discs. The company has acquired Technical Know-how for production of Edge Welded Trimetals and during the year 1999-2000 has updated its manufacturing / engineering technical know-how for production of Bimetal Strips. As informed last year the company has Imported Edge Welding Machinery from Germany for manufacturing of Trimetals through EBT Technology and the machinery has been installed successfully and started its production in the early 2001.

This is one of the modernisation programme the company has took up last year. The company has expanded the installed capacity of Electron Guns and Bimetal Strips during the financial year 2003-04 by 3 crores(Nos) and 500 Tonnes respectively.

Consequent upon this expansion,the total capacity of Electron Guns & Bimetal Strips have been increased to 13 crores(Nos) and 860 Tonnes respectively. The company has sub divided its equity shares during March 2005 from every One Equity share of Rs.10/- each into Five Equity shares of Rs.2/- each and also announced Bonus issue of shares to its sharesholders in the ratio of 1:1.

PARTICULARS ( CR) Dec-15 Dec-14 % CHG
NET SALES 24.87 25.03 -0.64
OTHER INCOME 0.02 0.01 100
TOTAL INCOME 24.89 25.05 -0.64
TOTAL EXPENSES 20.68 21.68 -4.61
OPERATING PROFIT 4.21 3.37 24.93
NET PROFIT 1.54 0.69 123.19
EQUITY CAPITAL 3.84 3.84 -

Promoters hold 61% stake in the company and rest of the majority are Indian public.

 

have heard this names but not invested. financials as above of shivalik seems it is ok.

 

Thank u so much sir

 

Birla Precision Tech - is this a turn around company? Thanks for inputs

 

@Prasad GNN why do you say so regarding BPT? Seems like a garbage co. in fundas right now. Any news/rumors?

 

Dineshkapoor, BPT has high book value, consistent in sales volume and reserves have increased and liabilities coming down - this tells me that the company is alive and kicking. Can it turn around? What indicators to look for?

 

@Prasad GNN I am not too sure whether they are increasing their sales volumes. If you see the numbers here:
https://www.moneycontrol.com/financ...ologies/results/quarterly-results/BPT01#BPT01

The management is lead by Yash Birla, whose companies haven't done too well. If you really are looking for a risky but interesting bet then I'd suggest look at Amtek Auto stock. Its a bit risky but I think it has good potential to come back. But need to wait for a couple of years.

 

What about the heavy debt of Amtek Auto and its group companies?

 

I think Shivalik bimetal is a good company with consistent profit and dividend record.

 

@New_Investor I know the debt is there. Price of the stock has been hammered, but that group has the assets to monetize as those assets are doing really well. I wouldn't buy Castex, JMT etc. Amtek auto will be the stock to watch. It is the owner of those assets abroad which are up for sale, and that will bring the debt down to half. Management is really comfortable of the pace at which this is happening. The ebitda margin and topline hasnt gone down so much for the company, just that the Interest and depriciation has eaten away the profit. Amtek is a world class company, just going through difficult times. Thats a risky bet, but better than BPT anyway, because they have already performed before and are not doing too badly right now (operationally).

 

A few months back, sebi had received complaints about share price manipulation in castex, amtek's sister concern. Sebi has just said that it has not so far found any evidence to prove any wrong doing or manipulation in castex share price. But sebi has not so far given a clean chit to castex. Maybe the probe is still going on.

 

@New_Investor yes. I am not touching castex, I'm talking about amtek auto.

 

Agreed. But Castex is sister of Amtek Auto. If Castex falls, for whatever reason, Amtek Auto may also fall. When news broke about the complaint received by Sebi against Castex, both Castex and Amtek Auto fell.

 

@New_Investor Sure, Castex is a sister concern and so is JMT, Metalyst etc. Even in terrible results, Amtek Auto didnt go down from mid 20s level although Castex plunged from 8-10 levels to 5 level now. So I see good support there for Amtek auto. Now there isnt much you can do about the manipulations (its an open secret that many shares are manipulated). But I see things fundamentally, and if you listen to Amtek Auto management then it seems that Amtek auto will be be first one to get its debt reduced on its books and not from the pledge of the shares held in Castex etc.