Porinju’s latest stock pick is a Pharma company called BDH Industries. Today, he bought 45,942 shares at Rs. 42.84 each, making an investment of Rs. 19.68 lakhs.
BDH Ltd is also an ultra micro-cap with a market capitalisation of only Rs. 24 crore. It is engaged in the manufacture and sale of therapeutical applications.
During FY 2013-14, BDH reported robust results with export sales of Rs. 3051.74 lakhs as compared to Rs. 2205.17 lakhs in FY 2012-13. The domestic sales stood at Rs. 1202.11 lakhs as compared to Rs. 1924.77 lakhs in FY 2012-13. The profit after tax in FY 2013-14 improved to Rs. 229.78 lakhs as compared to Rs. 167.27 lakhs in FY 2012-13.
This robust performance continued in the September 2014 quarter with the net profit surging 55.32% to Rs 0.73 crore as against Rs 0.47 crore during the previous quarter ended September 2013. Sales surged 30.06% to Rs 12.07 crore in the quarter ended September 2014 as against Rs 9.28 crore during the previous quarter ended September 2013.
However, the results for the December 2014 quarter were disappointing. The net profit declined 21.67% to Rs 0.47 crore in the quarter ended December 2014 as against Rs 0.60 crore during the previous quarter ended December 2013. Sales declined 25.21% to Rs 8.16 crore in the quarter ended December 2014 as against Rs 10.91 crore during the previous quarter ended December 2013.
Porinju’s calculation appears to be that BDH Industries will get back to the growth trajectory in the March 2015 quarter and that there will be bumper gains to be made.
Whether this micro-cap will live up to the lofty expectations of Porinju Veliyath requires to be watched closely.