what is the Future Multibagger company in "Automobile Ancillary " Sector ?

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by RAMA MURTHY SASTRY CHALLA, Oct 17, 2015.

  1. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    Please Express your views with Full Details .....

    My choice :
    1.Munjal Showa Ltd
    2.Banco Products (India)Ltd
    3.Minda Industries Ltd


    I am holding only Munjal Showa Ltd in my Portfolio

    Disclaimer : I am not a SEBI Registered Stock Market Analyst , Dont buy any stock based on this Primary Information , This is only Learning and Discussion Purpose Only
     
    Last edited: Oct 17, 2015
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  2. Sachin pathak

    Sachin pathak Active Member

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    Motherson Sumi
     
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  3. stockjeet18

    stockjeet18 Member

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    If motherson sumi falls down more due to Volkswagen issue then definitely it must be the lucky chance to buy more. .. Can't imagine any other in the place of motherson ... Definitely it deserves ...
     
  4. stockjeet18

    stockjeet18 Member

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    Tell your investment rationale for munjal showa
     
  5. vikas chaudhary

    vikas chaudhary New Member

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    I like munjal showa...... I'm not much expert but it's a debt free company with good future.... promoters share holding is also good.... Rama sir.... I'm also waiting to enter in this.... waiting for little more correction.....:)
     
  6. sandeep1802

    sandeep1802 Active Member

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    What about LG balakrisnan.....
     
  7. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    good company no doubt
     
  8. dineshkapoor27

    dineshkapoor27 Active Member

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    I am invested in LGB and JBM Auto. Also valuation wise Jay bharat Maruti is looking good.
     
  9. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    Yes , LGB & Jay Bharat Maruti are good companies
     
  10. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    @stockjeet18

    I already posted details in my previous posts "
    Ask A Query About Your Stock Picks And Portfolio " ---- 7 th page
    munjal Showa Ltd


     
  11. stockjeet18

    stockjeet18 Member

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    Management guidance on growth ?
     
  12. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    @stockjeet18

    Product Wise Performance

    All products of the Company come under single primary business segment i.e. Shock Absorber. Its variants are Front Forks, Rear Cushions, Struts and Gas Spring/Rear Door Lifters etc. Therefore requirement for analyzing segment-wise or product wise performance does not arise.

    Outlook

    Auto component production is forecast to rise at a steady pace in 2015-16, mainly due to improved demand from OEMs and healthy growth in exports. Demand for auto components recovered in 2014-15, helped by a modest rise in domestic automobile production and strong pick up in exports. The industry's long-term growth prospects remain healthy as domestic and global OEM demand continues to rise.

    The Company will continue to benefit over the medium term from its strong business linkages with large motorcycle OEMs and its healthy operating efficiencies. The company will maintain its healthy financial risk profile over this period, supported by steady cash accruals and modest capex plans.

    The Company's financial risk profile remains healthy, supported by steady cash accruals and nil outstanding debt. Steady cash generation, prudent working capital management, and moderate capital expenditure (capex) in 2014-15 have enabled the company to maintain its debt-free status.

    Our key customers are planning to establish Greenfield facilities in Gujarat with their respective suppliers of Key Components being currently at various stages of making investments in close proximity to these new facilities.

    The Rural demand for automobiles has been adversely impacted by unseasonal rains in the month of March. Poor Crop realization and slowdown in the rural wages have pulled back the rural economy impacting retail off-takes. However, our major customer, Hero MotoCorp Limited has sold more than 6.6 million two wheeler in the financial year 2014-15 and also over five lakhs vehicles in the non festive month of April 2015.

    The outlook of the company appears promising as our key customers Hero MotoCorp Limited, Honda Motorcycles and Scooters India Private Limited and Maruti Suzuki India Limited have strong presence in the market inspite of the current economic key performance indicators.

    Source : Company Official Website
     
  13. Sachin pathak

    Sachin pathak Active Member

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    Jay Bharat Maruti - bad sept qtr??
     
  14. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    just because of one quarter result we can not ignore this company ...but it is a subsidiary of maruti suzuki india Ltd

    last 4 years continuous sales and net profit growth company

    last 3 years company reducing debt also

    last 18 years continuous dividend paying company

    and more over " Sales is not a problem for this company they are supplying maruti suzuki india

    and main Alliances with

    " Accelor mittal " Cornaglia ,CLN Group , Daiwa Excel ,Dassault Systemes,
    Futaba ,Hamamatsu ,Hay Group ,Kanemitsu ,Magnetto ,Metal One ,
    Nisshin Steel , Ogihara,Okamoto ,Sumitomo Corporation,Yorozu Corporation

    Quarterly results
    sept 2014 sales Rs. 345 Cr. PAT 12.25 Cr.
    Spet 2015 Slaes Rs. 329 Cr. Pat 9.94 Cr.

    due to some European economy slow down .....

    Fundamentally it is a good company no doubt
     
  15. Sachin pathak

    Sachin pathak Active Member

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    @rmsc

    Jay bharat maruti :

    Share price performance has been largely disappointing. Market doesnt seem to attach any premium to assured sales to evergrowing parent Maruti

    How much is its captive sales ie to holding company maruti? Last 4 qtrs - flatish sales with pressure on profits whilst maruti continues to grow QoQ

    2011-15 : sales growth 6% CAGR, PBIT. 1.5% CAGR , 2015 PAT at 2011 level with profit dipping in the intervening years

    What makes it a worthwhile investment?
     
  16. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    European problem is affected margins , If Europe is recovered this stock give very good profits no doubt ...
    It is a good management company ...and just like motherson sumi ...it is also having European problem
    It dosn't mean that it is a bad stock , if you catch in a better valuations it is a good investment ...

    if you have any good choice stocks in this sector mention in your post
     
  17. sandeep1802

    sandeep1802 Active Member

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    Please keep a watch on phoenix lamps....it is looking attractive after Suprajit Engineering acquired this company...it can be a multibagger
     
  18. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    yes sandeep1802 , it is a good stock , but promoter sell stake from 67.41 % to 51.05 %
    last year
     
  19. Sachin pathak

    Sachin pathak Active Member

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    I am not saying its a bad stock. It may have a good management too. I Just want to know the compelling reasons which make this worthwhile investment.

    You repeat that it faces some european problems

    What European problem does the company face when over 80% of its sales are to maruti suzuki india?

    With such high level of captive sales why isnt the market assigning a premium to the stock? A single digit P/E ratio cant go unnoticed by the market....
     
  20. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    for European exports all companies are decreasing some profit margins for exports ....
    You know all European car manufacturers are suffering due to China import numbers also decreasing ...
    so it will overcome after world markets settling ....

    Tata Motors also suffering same issues ....
     
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