Veljan Denison Ltd. Bse Code-505232

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by Dr. Avinash, Jun 16, 2015.

  1. Dr. Avinash

    Dr. Avinash New Member

    Joined:
    Jun 2, 2015
    Messages:
    8
    Likes Received:
    1
    Veljan Denison ltd. ( Formerly Denison's Hydraulics ltd.) This Hyderabad based company with a very small equity base of 2.25 Crs. has come out with very good results for the quarter ended march15. This co. is manufacture of Pumps, Motors, Valves and custom-built Power systems / Manifold blocks. This is a Veljan group company along with Veljan Hydrair ltd. Basically they offer Hydraulic and pneumatic solutions for Ship building, Energy, Mobile and Industrial segments. for march 15 quarter the net profit is 4.53 on an equity of 2.25. The full year net profit for year ending march 2015 is 13.04 Crs. giving an EPS of 58. The book value for march 2014 is 355 without any revaluation of reserves.At present price of 661.2 the P/E ratio works out to be 11.39. I find this company interesting with bright future ahead and have bought some shares of this co. If anybody has some more information on this co. please share your opinion.
     
    Last edited: Jun 16, 2015
  2. stockguru

    stockguru Active Member

    Joined:
    May 29, 2015
    Messages:
    199
    Likes Received:
    80
    There isn't much information available about this. Are you aware of the products that the company makes. Are those superior in quality or cheaper than it's competitors. If the company does has a cost advantage over it's product or offer superior products at reasonable price then one can consider looking deeper into company. Personally someone from the industry can guide us about the company and it's products.

    https://www.screener.in/company/?q=505232

    Happy Investing :)
     
  3. Dr. Avinash

    Dr. Avinash New Member

    Joined:
    Jun 2, 2015
    Messages:
    8
    Likes Received:
    1
    Veljan denison has declared 100% ( Rs.10 per share) dividend for the year ending March2015. Effective 17.25% payout of net profit. In the www.screener.in it has been covered under auto ancillaries which according to me is incorrect. It is in engineering sector and should be compared with KSB pumps, Kirloskar brothers etc.
     
    Last edited: Jun 19, 2015
  4. stockguru

    stockguru Active Member

    Joined:
    May 29, 2015
    Messages:
    199
    Likes Received:
    80
    In moneycontrol it is shown in compressors category. Looking at the website, I can make out you are correct that it should be compared with engineering companies like ksb pumps, shakti pumps etc. It would be interesting if anyone can find more information about the company. What kind of market share does it has and whats the growth percent in the industry overall. I am not certain but this sector would have some unorganized players as well as some Chinese players too. If anyone can find an industry report about this sector, please do share.
     
  5. Dr. Avinash

    Dr. Avinash New Member

    Joined:
    Jun 2, 2015
    Messages:
    8
    Likes Received:
    1
    Since 16 june when I first wrote about Veljan Denison ltd. on this forum it has gone up to 868 ( only buyers) from 661. ( A return of 31 % in almost seventeen days). I think still lot of steam is left in this stock. Corrections ,if any should be considered as an opportunity to buy.
     
    Srouta Mukherjee likes this.
  6. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

    Joined:
    Sep 8, 2015
    Messages:
    3,688
    Likes Received:
    2,011
    yes good company ... my father invested in that company in IPO so many years back at par Rs. 10 .... after that 2 times they issue rights ... plant is located in telangana state , mainly Hydraulics manufacturing company previously called " Dennison Hydraulics " , after that they change name " Veljan " in the name of chairman " velamati Janardhan Rao " .. profit is good, assets are also good ,but mainly promoters not trying to expand business , but it is a worth buying in market crash situations , based on asset value company assets value increasing every year ...
     
    Srouta Mukherjee likes this.
  7. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

    Joined:
    Mar 28, 2015
    Messages:
    1,898
    Likes Received:
    769
    Today it is at 642 Rs. Such stocks there must be periodic profit booking otherwise all grain are on paper only.
     
  8. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

    Joined:
    Sep 8, 2015
    Messages:
    3,688
    Likes Received:
    2,011
    yes , my father invested 50 shares at IPO at par Rs. 10 at 1973 (my birth year)
    few years after company issue rights 1:1
    after few years company issue another rights offer 1:1
    for Rs. 10 only
    total 200 shares
    after some years company not declare dividend ...in 1997 first time they announce dividend 18 %
    after that company never look back
    i sold 100 @ Rs. 370
    another 50 shares @ 500
    another 50 shares @ 650

    be careful in crash situation this stock fall very rapidly and trade low volume also ...liquidation is also problem and
    buyer and seller price (bid and ask price gap ) gap always troubles investors and traders , in crash price and volumes are come down drastically .....
    any one want to buy this stock slowly collect this stock in crash situation only ....