Secular growth stocks with 5+ year horizon suitable for 10%+ of PF

Good Choice ! Try @AlphaStreetIn #AlphaStreetView @VedicStocks #VedicMultiBaggers #VedicStocks ...for great advice .

 

KabraExtrusiontechnik Ltd (NSE : KABRAEXTRU BSE Code: 524109) (CMP: Rs. 159) (FV: Rs.5)

Kabra Extrustiontechnik Ltd (KET), the flagship company of the Kolsite group, specializes in providing plastic extrusion machinery for manufacturing pipes and films. It is one of the largest players in this space and present across 85+ countries in the Americas, Middle East, Asia and Africa. It has two manufacturing locations in Daman. It has completed more than 14,000 installations worldwide since 1962.

KET enjoys a leadership position in the extrusion market and is a ‘Two Star Export House’ status. It has set benchmarks in the plastics extrusion industry for its modern R&D techniques and processes to meet the market requirements for low power consumption, high output, maintenance-free and user-friendly plastic extrusion plants. It received two consecutive National Awards for Technology Innovation in 2015 and 2016. Through constant R&D and innovation, it has pioneered over 57 products and solutions in the plastic extrusion industry since 1970.

Collaborations: KET has collaborations with leading companies in the plastic industry such as Battenfeld-Cincinnati (Germany-Austria-USA), PentaS.r.l. (Italy), Greiner (Austria), Unicor (Germany) and ExtronMecanor (Finland).

KET offers market solutions to the following:

Agriculture (Plasticulture): Plasticulture represents application of plastics in Agriculture, Horticulture, Water management and related areas. A variety of plastic materials and end-products are deployed in Plasticulture applications for water conservation, irrigation efficiency, crop and environment protection as well as end-product storage and transportation.

Infrastructure: Plastics pipes and profiles play a major role in the fields of Housing, Industrial and Public Infrastructure, Sanitation, Water Reticulation, Irrigation, Desalination and Effluent Treatment, Micro-ducts (Fibre optics) and conduits.

Packaging: Flexible packaging offers solutions for diverse applications in various user sectors including staples and food products, beverages, pharmaceuticals, personal care and household products, cigarettes and tobacco products as well as a wide range of industrial applications.

Telecom: In telecommunications, the ducts in which the fibre optic cables are installed are usually made of polyethylene. KET manufactures high-speed telecom micro-duct lines and high performance bundled sheathing lines to produce micro-duct for 3G and 4G data communication.



Valuation: KET is a closely-held, investor-friendly company that has consistently paid dividends since the last 10 years. The Indian promoters hold 56% equity stake (zero pledged) while Battenfeld Extrusion (Germany and USA) hold 14% stake. For FY17, the Company posted sales of Rs.276 crore with net profit of Rs.28 crore and an EPS of Rs.8.7. At a market cap of Rs.500 crore, the stock trades at a P/E of just 18x as against the Industry P/E of 29.76x. Its share book value is Rs.57.72. For FY18 and FY19, the Company may record a top-line and bottom-line growth of 10% and 15% respectively, notching an EPS of Rs.10 and Rs.11.5 respectively. At the CMP, the stock is available at an attractive forward P/E of just 11x thus providing an investment opportunity for long-term gains.

 

I request the friends who post their views to include the negatives as well (both the company & investment in the CMP). This will give us a more balanced approach for decision-making.

 

Gruh finance or DHFL which stock is best for next 5 years?

 

DHFL is better than Gruh Finance.

 

KK Shah ji
Very Good Analysis
Kabra Extrusion is a good company ... and also having 2.59 % stake in Plastiblends
in same group good stock

 

Garware Polyester Ltd (BSE 500655) FV RS 10 CMP 133



The Company : Garware Polyester Limited (GPL) founded in the year 1957, is the pioneer and the largest exporters of polyester films in India. GPL is the only manufacture of sun control window films in India and a trend-setter in Sun Control Film industry with a history of more than 3 decades of technological development. The Company has four manufacturing plants for Polyester Film and manufactures Film of thickness ranging from 10 micron to 350 micron.

The Company possesses Patented Technology for Dyed Polyester Film in India and USA and is the Second Company in the world to possess such Technology. The Company is already backward integrated through the establishment of a Batch Process Polyester Chips plant which ensures a steady stream of supply of chips for the Film Lines. The BOPP line set up by Company in last year was part of the Company’s efforts to ensure forward integration too. Thus Company’s strength is its integrated manufacturing facilities, R&D Center and development of specialty products for various applications.

Products : The Company manufactures Bi-axially oriented polyethylene terephthalate (BOPET) / Polyester Films, Sun Control Films, BOPP Films, Thermal Lamination Films and Specialty Polyester Films of high quality for a variety of end applications. GPL also manufactures the premium grade heat rejection films based on the latest `Nano Technology’ developed in its in-house R&D facility center. The Company has introduced Infrared rejection films which can reduce infrared heat up to 92%. It has also developed the film to reduce the impact of mobile tower radiation.

Domestic Business : Growing Retail sector, increasing preference towards packaged items, liberalization and rising middleclass is expected to increase in consumption of Polyester Films thereby adding to growth of this segment in the domestic market. Increased usage of window films in offices, commercial buildings and malls will continue to add to the growth of the Company’s business in the premium segment of window films. GPL has well recognized brands and integrated manufacturing facilities which are expected to augur well for the company’s future growth.

Global Business : Through its subsidiaries situated in USA and UK the company has developed a wide network of dedicated customers in Europe, USA, Far East, Middle East, Brazil, Australia, China, Russia, New Zealand, Eastern Europe, Mexico and Africa. The quality of GPL products is rated amongst the best in the world and the Company pays special attention on customer service and satisfaction due to which the customer base is consistent and increasing. The aim is to expand export base and catapult international operations into a major growth driver. GPF is the marketer of the brand ‘GLOBAL WINDOW FILMS’ which is registered in the US and is one the most popular brands. The subsidiary is catering to Russia, Europe, Asia-Pacific and Africa market film under the brand “Garware Sun Control”.

Future Strategy : The strategy is to focus on the specialty films, launch new products, strengthen network and Services and speed up brand building initiatives. Plans are afoot on a marketing warpath, overhauling the product portfolio and penetrate newer markets, launch aggressive advertisement campaigns. The shrink label application film is very well stabilized in the market. With demand outlook for High Shrink films remaining robust, the Company has plans to shift to the specialty PET shrink Films, where it sees a tremendous opportunity. In thermal film, GPL has developed Gold & Feather feel films. With foray into BOPP, GPL has now become the only company in the segment which will be manufacturing BOPET, Sun control Films, Thermal Lamination and BOPP.

Valuation : GPL, a six decade old company with promoter holding of 61% (Zero Pledge) posted a Consolidated total revenue for FY 17 of 925 Cr & Net Profit of 19.9 Cr on an equity of 23.23 Cr giving an EPS of Rs 8.57 per share. Borrowing stands at 267 Cr (Short Term) and 19.9 Cr (Long Term) Finance cost remained 32 Cr. The company is having 4 Lakh shares of Garware Wall Ropes (At current market price of 850 per share, the value is close to 33 Cr)Freehold Land, Lease hold land and an entire Building in Vile Parle, Mumbai, near Airport, the value of which should be many times of current market cap (300 Cr).

If company can sell even part of its mentioned asset and retire the entire debt than savings on interest alone directly gets added to the bottom line, which can boost the EPS by 15 Rs per share. Debt to Equity Ratio is 0.63, Debtor Days at 19.31. With bottoming out of the Polyfilm Industry in near future and Softening of interest rates, and falling Crude price, the profitability of the company with reducing debt, may improve going forward by 15 to 20% CAGR for the next few years, plus the company is back on dividend paying list after 5 years, that shows confidence of management towards future growth of the company, hence Investor may study this asset rich company for long term investment.

(Investor can follow Hidden Gem Telegram Channel : t.me/hiddengemsmultibaggers )

 

CEEJAY FINANCE LTD (BSE : 530789 FV Rs 10) CMP 125



The Company : Ceejay Finance Ltd (CFL), headquartered in Nadiad, Gujarat and registered as an Asset Finance Company – D NBFC with the Reserve bank of India, is an integrated finance company providing financial services. CFL is a sister company of Ceejay Group, which has been established for over a century and has been a leading player in Retail Finance since 1993, specializing in loans for vehicle (2 Wheelers, 3 Wheelers, 4 Wheelers, Pre-owned vehicle and Commercial Vehicles). With growing business opportunities, the company diversified its finance business to include SME Business Loans, Loan Against Property (LAP), Personal Loans, Micro Finance Loans (Since 2015), and also acting as an Insurance Service provider for Genaral Insurance to the clients.

Business : The company is currently managing Assets (AUM) of over 500 Crores and has served over 1.2 million clients nationally. The company is having a strong presence in rural, semi-rural, Urban and semi-urban areas, where the company help it clients to secure loans with minimum hassle. The company has direct presence in major cities & towns in Gujarat and Maharashtra. And rest of the area is covered through agents and dealers network spread across the state of Mah & Guj. The company secure the finance from the bank at 12 to 14% and promoter entity at 10 to 12%. ICRA has assigned the company a stable rating of +BB (Stable) for the cash credit limit from the banks. Capital Adequacy Ratio (CAR) of the company stands at a healthy 60%, well above the regulatory minimu of 15%. As on 31st March 2017, the Hypothecation / Mortgage Loan stock stands at 55 Cr as compared to 42 Crore as on 31st March 2016.

Outlook : With normal monsoon in Gujarat and Maharashtra in the current year, the demand from rural and semi rural areas for the financial products is likely to increase, current data for 2 wheeler sales from rural areas is encouraging. Demand for MFI loans from 10,000 to 20,000 which the company caters to is likely to remain growth area for the company, along with Personal Loan and LAP portfolio. Falling interest rates is likely to help company secure finance at a much lower rates than currently 10 to 14%.

Valuation : CFL, a continuous dividend paying company for the last 7 years is a BSE listed company with a small equity of Rs 3.45 Cr and promoter holding of 59%, 20% non promoter holding in physical form and 5.3% held by HNI Investor, leaving very less floating stock in the market. For FY 17 the company reported an income of 14.5 Cr and Net Profit of 4.68 Cr giving an EPS of Rs 13.56, for FY 18, the company is likely to grow its topline by 15% and bottomline by 25% due to reduction in cost of fund and growth in disbursement, the expected EPS of Rs 17, the stock is trading at a PE of just 6.8 times, Current Price to book value is 1.2 times only (Industry PE & P/B stands at 37.46 & 2.5 to 4 times. Muthoot Capital Ltd., is in the same business and its valued at 24 P/E and Price to Book of 4 times.), ROE & ROCE is 13.29% & 21.94%, Debt to Equity Ratio is 0.60 only.

In the last 10 years, the company has achieved Compounded Sales Growth of 8.48% and Compounded Profit Growth of 13.5%, Trailing Twelve month Sales Growth & Profit Growth is 18% and 28%, which indicates the company is on a high growth trajectory. If the company is valued even at 50% discount to its peers in terms of P/E and Price to Book value, stock price should easily more than double from current levels, thus making CFL a investment candidate for long term wealth creation.


Hidden Gems Multibagger Telegram Channel can be followed at : t.me/hiddengemsmultibaggers

 

Stock analysis is like to go to the fortune-teller.
I like this litte private and non-commercial website https://www.quantanal.net/qa.html
with data facts.

 

1. Bhansali Eng - High Business ENtry Barrier, Capacity is less than Demand, High Margins
2. TechnoFab ENgineering - Infrastructure Play, Resonates with Smart City India Play. attractive valuations
3. PNC Infratech - Infrastructure Play, Decent Promoters, Focus on Roads
4. Kridhan Infra - Infrastrutcure Play, Decent Valuations, Growth Theme

 

Bhansali Eng is a very good bet from my view perspective. Very good company and it is on expansion mode.

 

I agree. The stock has given almost 4 times return in last 1 year.

 

whats your view on gati

 

Hello I am new in this forum please help me

 

Ok, will help you

 

yes, please help him

 

If you make profit daily, then y are u here?
G1

 

He is Father Teresa.... Selfless and wishing the whole world to be billionaires through his advice.

This site is only infested by people marketing their packages (under the guise of educating the uneducated investor) or their companies they work for.... All this right under the very nose of the administrators. Maybe such people have to pay for all such adverts

 

I pity the ones that fall for these guys..

 

I feel allcargo logistics is a better bet