Can DHP India Limited be a multibagger?

DHP India Limited is a Manufacturer of LPG Regulator (Liquefied Petroleum Gas Regulator) and its accessories. DHP started as trading company but evolved into a manufacturing company, which substantially improved their bottomline. The company is export-oriented company and manufactures rubber hoses for gas connections and Gas cylinder regulators for both industrial and domestic use.

Company is debt free, dividend paying, has great cash flows, commands an 5 yr Average RoCE of around 33% and 5 yr average RoE of 25% and RoIC of 38% and is available at 6.5 PE, has grown (since Mar 09) at a CAGR of 35% topline and 75% bottomline and is the only listed play in its sector.

Kindly share your views on it. Regards,

 

Dear sanman ,

Your stock selection is good ..congratulations ....

DHP INDIA is a good stock and it is in my portfolio also ,

1.It is almost Debt Free stock
2.Market cap is Just Rs. 30 Cr.
3.Year high is around Rs. 180 , considerable correction in this stock now it is available some reasonable
valuations...
4.Business model is safe, Domestic market network is good and there is a lot of scope to improve in this business

5.last 5 years consistency in profits
6.High promoters stake 74.37 %

In my view it is a good stock and promoters track record is also good ....

In corrections there is a good buying chance .....

Today market corrected drastically Nifty fall 165 points (-2 %)
but DHP INDIA is up and closed at Rs.104.20 (+ 3.48 % )

 

I feel that long term things will move away from LPG and more towards piped CNG at homes. I wonder if they are a part of that transition as well? Still a great company to invest in. I had a look at it before also. Very nice pic, just circumspect about the business for next 5 years.

 

many Gas connections are in town and rural areas , in my state Andhra Pradesh government giving so many connections every month in Deepam programme ...so there is a large market and Gas supply in
pipes are not covered even in cities also ...because so many transmission problems also
who knows company may enter in to pipeline manufacturing also .....