Ocean Dial’s Gateway to India Fund is advised by Sanjoy Bhattacharyya, the doyen amongst value investors. The Fund is benefiting immensely from Sanjoy Bhattacharyya’s mastery in stock picking.
Sanjoy has a reputation for selecting a stock only after subjecting it to rigorous checks & filters. Apart from the quality of the business and the integrity of the management, Sanjoy pays careful attention to the P/E, P/B, 5 year average ROE and 10 years sales growth of each stock.
Sanjoy Bhattacharyya’s last stock pick for Ocean Dial Fund was Ramkrishna Forgings. The Fund bought 162,439 shares of Ramkrishna Forgings at Rs. 524 each on 10th April 2015. Today, barely three months later, the stock is at Rs. 715, giving a gain of 36%. From the looks of it, Ramkrishna Forgings has a long runway ahead of it.
Sanjoy’s latest stock pick for Ocean Dial Fund is Salzer Electronics, the electronics powerhouse micro-cap. The Fund has subscribed to 7,50,000 shares of Salzer at Rs. 235 per share in the latest QIP issue. The sum invested is Rs. 17.62 crore.
| Salzer Electronics Ltd – Financial Overview | |||
| Figures in Rs crore | 2015 | 2014 | 2013 |
| Net Sales | 283.30 | 244.53 | 228.73 |
| Operating Profit | 36.45 | 31.15 | 29.86 |
| Profit After Tax | 11.98 | 8.44 | 7.06 |
| Share Capital | 10.28 | 10.28 | 10.28 |
| Reserves | 97.67 | 86.42 | 79.78 |
| Net Worth | 107.95 | 96.70 | 90.06 |
| Loans | 100.18 | 87.79 | 78.82 |
| Salzer Electronics Ltd – Ratios | |||
| Figures in Rs crore | 2015 | 2014 | 2013 |
| Debt-Equity Ratio | 0.88 | 0.83 | 0.75 |
| Operating Margin (%) | 11.57 | 11.37 | 11.60 |
| Net Profit Margin (%) | 3.80 | 3.08 | 2.74 |
| Return on Capital Employed (%) | 14.93 | 13.37 | 13.32 |
| Return on Net Worth (%) | 11.71 | 9.04 | 8.09 |
| Earning Per Share (Rs) | 11.65 | 8.21 | 6.87 |
| Dividend (%) | 15.00 | 15.00 | 12.00 |
| Dividend Payout | 1.86 | 1.80 | 1.44 |
Salzer Electronics is a no-brainer purchase for any investor looking for a sensible investment. It is backed by L&T, the blue chip behemoth. In addition, Rajesh Doraiswamy, JMD, revealed that the Company is looking at good growth for the next three to five years at the rate of around 25-30 percent Compound annual growth rate (CAGR). He also stated that the Company is working on various new projects, including one with an Austrian company called Trafomodern for naturally cooled three-phase transformers. He emphasized that going forward, there would be “very robust growth” from the industrial switch-gear businesses which is higher EBITDA margin products. He also pointed out that there would be at least 100 bps point increase in the EBITDA margin in the next three years. Doraiswamy further confidently stated that “We expect Salzer to emerge as a Rs. 1,000 crore enterprise by 2020”.
So, it is no surprise that ace investors like Vijay Kedia and Sanjoy Bhattacharyya are making a beeline for Salzer Electronics.
Hello,
You should report unbiased info. If you see bulk deal, Sundaram MF has sold 55000 shares.
You should report that also, not just bullish information.
Hello, Not sure why you feel its biased information. The article was to inform all members in this forum who respect great personalities like Sanjoy Bhattacharyya on his thoughts and which sector Sanjoy is focusing. RK forging is expected to grow 60% YOY atleast for next 2 years. Please do not be negative, as an investor I find this blog very informative.
Hi,I follow these information very keenly. I have taken some shares of Salzer Electronics following Mr.Bhattacharya. On 31st July Merrill Lynch sold heavy nos.resulting the share price down.Over a period to me it looks good ,will love to get other views well.
Appreciate this blog ,very informative.
The same fund has sold some positions in salzer today!!! In jus a couple of days after loading up. Wonder what one has to say to this now??
My query is as What a retail investor supposed to do?? Any Comments will be highly appreciated.