Kokuyo Camlin is a “low-risk, good-return” stock: Ramesh Damani
Ramesh Damani was among the first to realize the potential of Kokuyo Camlin.
He recommended a buy of the stock in the following words:
“So one stock we tend to like in the space which the market seems to have forgotten and I own this stock is Camlin. It has around 300-crore market cap and owing to the hard work that the stock has done, the Japanese have come and taken a stake in this company at about Rs 110 per share. The stock is available on the screen at Rs 40 per share for some unknown reason. The company has been disappointing for the last four quarters, but that will change over time, at least looking at what Kokuyo Camlin, who has taken Camlin, suggests. It says it wants to increase the turnover of this company from 400 crore to roughly 1000 crore over the next few years. So it suggests better times ahead for the company. So it is a low-risk, good-return type of investment.”
Not surprisingly, Ramesh Damani has a chunk of 375,000 shares of Kokuyo Camlin in his portfolio as of 31st March 2017.
We can safely assume that he continues to hold the stock even as of date.
| KOKUYO CAMLIN LTD – KEY FUNDAMENTALS | |||
| PARAMETER | VALUES | ||
| MARKET CAP | (Rs CR) | 1,407 | |
| EPS – TTM | (Rs) | [*S] | – |
| P/E RATIO | (X) | [*S] | – |
| FACE VALUE | (Rs) | 1 | |
| LATEST DIVIDEND | (%) | 25.00 | |
| LATEST DIVIDEND DATE | 29 JUN 2011 | ||
| DIVIDEND YIELD | (%) | 0.00 | |
| BOOK VALUE / SHARE | (Rs) | [*S] | 22.52 |
| P/B RATIO | (Rs) | [*S] | 6.23 |
[*C] Consolidated [*S] Standalone
| KOKUYO CAMLIN LTD – FINANCIAL RESULTS | |||
| PARTICULARS (Rs CR) | SEP 2017 | SEP 2016 | % CHG |
| NET SALES | 134.3 | 127.51 | 5.33 |
| OTHER INCOME | 0.15 | 0.65 | -76.92 |
| TOTAL INCOME | 134.45 | 128.16 | 4.91 |
| TOTAL EXPENSES | 127.26 | 128 | -0.58 |
| OPERATING PROFIT | 7.18 | 0.15 | 4686.67 |
| NET PROFIT | 0.28 | -3.58 | 107.82 |
| EQUITY CAPITAL | 10.03 | 10.03 | – |
(Source: Business Standard)
Kukuyo Camlin is the cheapest MNC consumer stock at 1X sales: Porinju Veliyath
Porinju knows a bargain when he sees it.
It is unthinkable that a high-quality MNC stock is available at such rock-bottom valuations.
Kokuyo Camlin @ 47 | MktCap-475 Cr. Cheapest MNC consumer co. at 1X sales! Consolation, capacity expansion, exports. looks good for 2 years!
— Porinju Veliyath (@porinju) July 23, 2014
@gvv_jagadeesh margins, capacity and stock price – all will go up from current levels. Indian operations going to be in focus for Kokuyo!
— Porinju Veliyath (@porinju) July 23, 2014
Obviously, Porinju bought a chunk of 582,375 shares of Kukuyo Camlin on 26th October 2016 at Rs. 82.56 each for Equity Intelligence, his PMS fund.
It is not known whether he still holds the stock in his portfolio.
Vijay Kedia’s latest stock pick: Kukuyo Camlin
Vijay Kedia’s name as a shareholder of Kukuyo Camlin was first noticed by Nickey, the charming research analyst with Bloomberg Quint.
She revealed that Vijay Kedia is now the proud owner of 10,10,000 shares of Kukuyo Camlin comprising 1.01% of its equity.
The investment is worth Rs. 14 crore at the CMP of Rs. 140.
Kokuyo Camlin rose as much as 7.8% to its highest level since Dec 2017
Vijay Kedia bought 1.01% stake in the company as per December shareholding pattern— nickey (@OnlyNickey) January 15, 2018
Why is Kokuyo Camlin so attractive to the ace investors?
Prima facie, these are the factors that make Kokuyo Camlin irresistible to the ace investors:
(i) Camlin is a dominant brand in the stationeries sector. The Company has a strong distribution network across the Country;
(ii) The promoters hold the maximum permissible 75%. Kokuyo Company Limited, the Japanese behemoth, holds 73.74% of the equity. The balance is held by the members of the Dandekar family;
(iii) The possibility of a buy-back by the Japanese promoter cannot be ruled out
(iv) The benefits of the Patalganga integrated manufacturing plant, for which an investment of Rs. 100 crore was made, will start getting visible in 2018 and thereafter;
(v) Commercial production has commenced at the new plant. The plant has complete end-to-end production capability. It is designed to manufacture more than 200 different product SKUs that include market leaders like markers, mechanical pencils and crayons. The plant will also maintain a permanent R&D facility of the Inks, Adhesive and the Plastics Injection-molding. Integrated manufacturing at a single site would reduce the production cost owing to reduced transportation cost and enhanced shop-floor efficiency;
(vi) The stationeries sector is dominated by players in the unorganized sector. GST is likely to aid the shift from the unorganized sector to the organized sector and Kokuyo Camlin will be one of the big beneficiaries.
Will Kokuyo Camlin repeat the success of Vijay Kedia’s recent picks?
Vijay Kedia has been enjoying great success with his recent stock picks posting hefty gains within a short time.
Some names that come readily to mind are Everest Industries, Vaibhav Global, Aries Agro, Dredging Corp etc.
Whether Kokuyo Camlin will follow the multibagger path of the other illustrious stocks in Vijay Kedia’s portfolio requires to be watched carefully!
Camlin is a great company,artists and desiners are using their products for the past forty plus years
why is camlin fine sciences flying ??????????????
http://www.domsindia.com The new competitor to Camlin in the Stationery Market.