Ace Investor Porinju Veliyath's latest stock pick

I used to watch his advises during 2008 till 2011 on Malayalam channels and could not come along with his views. He was so confident about Patel Engineering, Punj Lloyd etc those days.
Now he proved that a fund manager need not be basically from financial area and could be a Lawyer also. I start to appreciate Porinju now.

 

Check NSE

 

Its been heard that V2 Retail is opening their 18th store in new delhi.. Lets see the turn around. Hope it will add more value to company core, management is walk on talk.

 

Today Sahyadri made a high of 115... enjoy... let's hope there is more to come.

 

Great results. Watch out for more gains enjoy

 

rightly said Biju

 

V2 at 117.90 (+9.98%)

 

The stock is not much trust-able, but for short term investors can invest in it.

 

Check this ..the latest trending

https://huntersofdalalstreet.blogspot.in/2017/06/indian-metalsraising-star.html

About the Company:

Established in 1961 in the Eastern State of Odisha known for its rich natural resources, IMFA is India's largest, fully integrated producer of ferro alloys with 187 MVA installed furnace capacity backed up by 258 MW captive power generation and extensive chrome ore mining tracts. They are unique from the quality perspective due to comprehensive ISO 9001 Quality Management certification besides ISO 14001 Environment Management and ISO 18001 Occupational Health & Safety certification.
Over the years, we have developed long standing relationships with multi-nationals like POSCO of South Korea, Marubeni Corporation and Nisshin Steel of Japan and leading stainless steel producers in China and Taiwan. Within India, Jindal Stainless and Shah Alloys are our leading customers.
The Company has an industry experience of 50+ years

Exports:
Our Ferro chrome output is mostly exported to the Far East (China, Japan and Taiwan) However, given the expected growth in stainless steel demand / production in India, going ahead there will be distinct shift to catering to the domestic market for which we are ideally positioned.

Consumption (present) - Potential:
India's per capita consumption of stainless steel is around 2 kg which represents a significant opportunity particular given the expected focus on infrastructure creation which will lead to more demand.

Long-term Relationships:
While in India we have long standing relationships with Jindal Stainless, Shah Alloys and other producers, internationally we have partnered with POSCO of South Korea (taking the lead in a 76:24 joint venture in India to produce ferro chrome with assured off-take commitment in addition to a long term contract) and Nisshin Steel (long term contract) besides supplying on a consistent basis to many large customers in China and Taiwan.

Business segments:
Ferro-Alloys
Mining – To cater to the raw material requirement of silicon alloys production
Power – Captive use

Six furnaces adding up to 187 MVA have been set up at Therubali (Rayagada District) and Choudwar (Cuttack District) in Odisha thus making us the largest merchant producer of ferro chrome in India capable of producing up to 275,000 tonnes per annum.

Business Outline:

High carbon ferro chrome is primarily used in manufacturing stainless steel, low and medium carbon ferro chrome find their use in the production of special and carbon steel and also for multiple applications.
South Africa has the largest share of chrome ore reserves globally (80%) following by Zimbabwe whereas India has a less than 1% share with most of it found in Odisha
(Source: Company website)

Pros:

• 80% Output is Ferro Chrome output is exported to multiple customers in six countries
• 45% revenues from Long term contracts (So the forthcoming revenues are predictable)
• Global Investment bank JP Morgan is bullish on Steel sector for the next 3 years
• As incremental demand continues to outstrip capacity, we expect industry utilization to hit 86 percent by FY21, a ten-year high and stabilisation of prices,” it added
• ‘Make in India’ holds great promise for the manufacturing sector in general
• Major Fund Houses invested in the stock (As of Mar-17)
• Reliance Mutual fund: 6.41%
• BNP Paribas Mutual fund: 2.70%

Cons:

• Lowering of Chinese economy impact growth prospects, global demand is not much attractive at the moment.
• Price volatility
• Limited reserves of chrome ore
• Low return on equity for last 3 years is at 0.53%
• Poor growth in revenues for last 5 years at 3%

Financial Highlights:

• The Market cap of the company is around Rs.1341 crores
• Book Value is at Rs.400 (Price to book is 1.24- worth investing)
• Currently it is trading at 5.4 and the Industry P/E is at 9.5
• Revenues are grown at 38% in FY 17 and Margins are improved tremendously
• Debt to Equity is at 1.3 (Total Debt of the Company Rs.1033 crores and the Q4 FY 17 profit itself is at 174 crores)

For more details

Visit https://huntersofdalalstreet.blogspot.in/

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Thanks
Jagadeesh
Happy Investing

 

I am certain even the atrocious Salman Khan movie 'Tubelight' will be more interesting than this blog you are trying to sell