My Investment Idea No. 7: Dixon Technologies (India) Private Limited

Long Term Investment Idea No. 7

Dixon Technologies (India) Private Limited

1.    Face Value = Rs 10

2.    Equity = 11.33 Cr

3.    Price = Rs 3740

4.    Market Cap = Rs 4325 Cr (Small Cap)

5.   Dixon technologies (India) is the largest home grown design focused and solution company engaged in the manufacturing of Consumer Electronics like LED TVs, Home Appliances like Washing Machines, Lighting Products like LED Bulbs, CFL Bulbs and Tube Lights etc, Mobile Phones like feature phones and smart phones for Major Brands in India. It also provides reverse logistics solution i.e repair and refurbishment of Set Top Boxes, Mobile Phones and LED TV Panels. Dixon Technologies have 10 state of the art manufacturing facilities. A new facility is proposed to be in Tirupati for Southern India Markets.

6.    Dixon Technologies makes Consumer Electronics like LED TVs for the following brands:-

       (a)    Panasonic

       (b)    Haier

       (c)    Reliance ReConnect

       (d)    Intex

       (e)    BPL

       (f)     Vise

       (g)    Mitashi 

       (h)    Abag

7.    Dixon Technologies makes Semi Automatic ranging from 6.2 to 8.5 kg for the following brands:-

       (a)    Panasonic

       (b)    Haier

       (c)    Reliance ReConnect

       (d)    Intex

       (e)    BPL

       (f)     LLoyd

       (g)    Mitashi 

       (h)    Godrej

       (i)     Weston

       (j)     Elctrolux

8.    Dixon Technologies makes CFL and LED products for the following brands:-

       (a)    Philips

       (b)    Surya

       (c)    Bajaj

       (d)    Anchor

9.    Dixon Technologies makes Mobile Phones for the following brands:-

       (a)    Panasonic

       (b)    Karbonn

       (c)    Gionee

       (d)    Intex

      

10.   Company is also making CCTV and Digital Video Recorders (DVRs) under the Trade Mark CP PLUS.

Results Overview

        Net Sales (NS)/ Net Profit (NP)/ Earning Per Share (EPS)

Yearly

11.    2015: Rs 1203.13 Cr/ Rs 13.04 Cr/ Rs 11.51

12.    2016: Rs 1391.17 Cr/ Rs 42.57 Cr/ Rs 37.57

         Yearly YoY Growth in NP = 226.45%

13.    2017: Rs 2458.53 Cr/ Rs 47.57 Cr/ Rs 41.98

         Yearly YoY Growth in NP = 11.74%

14.    2018: Rs 2845.80 Cr/ Rs 60.90 Cr/ Rs 53.75

         Yearly YoY Growth in NP = 28.02%

15.    2019: Rs 2990.08 Cr/ Rs 63.35 Cr/ Rs 55.91

         Yearly YoY Growth in NP = 4.02%

Half Yearly

16.    HY FY 2019: Rs 1334.83 Cr/ Rs 29.19 Cr/ Rs 25.76 

17.    HY FY 2020: Rs 2552.30 Cr/ Rs 66.62 Cr/ Rs 58.80

         Half Yearly YoY Growth in NP = 128.22%

Shareholding Pattern

18.   Promoters:                       38.07%

19.   FII/ FPI:                           08.33%

20.   Financial Institutions:      00.08%

21.   Mutual Funds:                  20.88%

22.  Other DIIs:                       22.36%

23.  Public:                              10.28% 

Investment rationale

24.    Its a Consumption driven story and in spite of the fact that the demand was low during the FY 2019, it has managed to clock growth in NP, though only 4%. However, 128.22% growth in the results of HY FY 2020 as compared to HY FY 2019 indicate that demand is back. It is worth noting that HY FY 2020 NP of Rs 66.62 Cr is more than the full FY 2019 NP of Rs 63.35 Cr.

25.    With the revival of Housing Sector, the demand in consumption story is going to be become even stronger. Moreover, the business model of the company is such that it can keep adding additional Verticals like Fully Automatic machines etc. Even without additional Verticals, additional manufacturing units can be set up to benefit from rising expenditure on consumption.

26.    Presently, it is trading at Rs 3740 and I think I would consider entry point in this stock closer to around Rs 3400-3600 for long term investment.

Disclaimer

27.    The information provided above has been taken from internet, which may or may not be correct. Therefore, do your own research before investing.

28.    The post written above is not to be taken as a "Buy Recommendation" by the author on Dixon Technologies and no one should take decision to invest in Dixon technologies based on the information provided in this blog. This blog is written only to express the views of the author, which could be right or wrong. You must consult your Financial Adviser before investing in Dixon Technologies (India) Private Limited.

My Investment Idea No. 6: Rane Brake Lining (RBL)

Long Term Investment Idea No. 6

Rane Brake Lining

1.    Face Value = Rs 10

2.    Equity = 7.92 Cr

3.    Price = Rs 557

4.    Market Cap = Rs 442 Cr (Micro Cap)

5.  Rane Brake Lining, a part of Rane Group which was established in 1964, is engaged in manufacturing asbestos-free brake Linings, Disc Pads and Clutch Facings. These items have application in every segment of automobile Industry. The List of products manufactured by the Company is as given below:-

      (a)   Brake Linings

      (b)   Disc Pads

      (c)   Clutch Facings

      (d)   Rail Brake Blocks

      (e)   Commercial vehicle Brake Pads

      (f)    Sintered Brake Pads

6.    Rane Brake Lining has clientele from around the world and list of some of the Companies which are customers of Rane Brake Lining are:-

      (a)    Hundai

      (b)    Force Motor

      (c)    Escorts 

      (d)    Eicher

      (e)    Tata Motors

      (f)     Ashok Leyland

      (g)    Hero

      (h)    Honda

      (i)     Maruti Suzuki

      (j)     Yamaha

      (k)    John Deere 

      (l)     Toyota

      (m)   Swaraj Mazda

      (n)    Nissan

      (o)    Renault

      (p)    KIA

      (q)    TVS

      (r)     Audi

      (s)     BMW

      (t)     Volks Wagen

      (u)    Daimler

      (v)    FIAT

      (w)   Kubota

      (x)    BRP

      (y)    Ford

      (z)    ISUZU and many more. List is endless. I have stopped writing the names of the companies as the ALPHABETs have finished but I am sure that the point which I want to drive home has been made amply clear.

7.   It can be seen from the above that this company, is a market leader in its segment and has four Manufacturing Facilities. Moreover, its products are shipped to 33 Countries. In addition, Rane Group has Sales offices in Europe as Well as USA. These Sales Offices are also used for the sale of the products made in their other subsidiaries of Rane Group, to name Rane Engine Valve Limited, Rane (Madras) Limited, Rane TRW Steering System Pvt Limited, Rane NSK Steering Systems Pvt Limited, Rane Auto Parts, Rane Precision Die Cast Inc, Rane t4u Private Limited.

Results Overview

        Net Sales (NP)/ Net Profit (NP)/ Earning Per Share (EPS)

Yearly

8.     2010: Rs 236.30 Cr/ Rs 10.09 Cr/ Rs 12.74

9.     2011: Rs 305.84 Cr/ Rs 15.28 Cr/ Rs 19.31

10.   2012: Rs 359.17 Cr/ Rs 16.18 Cr/ Rs 20.45

11.   2013: Rs 376.44 Cr/ Rs   9.10 Cr/ Rs 11.50

12.   2014: Rs 384.11 Cr/ Rs 17.21 Cr/ Rs 21.76

13.   2015: Rs 416.41 Cr/ Rs 16.11 Cr/ Rs 20.37

14.   2016: Rs 448.42 Cr/ Rs 25.76 Cr/ Rs 32.56

15.   2017: Rs 487.48 Cr/ Rs 34.72 Cr/ Rs 43.86

16.   2018: Rs 482.46 Cr/ Rs 35.75 Cr/ Rs 45.16

17.   2019: Rs 513.89 Cr/ Rs 36.53 Cr/ Rs 46.15

Haly Yearly

18.   HY FY 2019: Rs 244.44 Cr/ Rs 11.88 Cr/ Rs 15.01 

19.   HY FY 2020: Rs 230.97 Cr/ Rs 18.68 Cr/ Rs 18.68

Shareholding Pattern:

20.   Promoter Holding:          66.99%

21.   Financial Institutions:     00.06%

22.   Insurance Companies:    09.74%

23.   Other DII:                       02.17%

Justification For Long Term Investment

24.  In spite of the fact that Automobile Industry was in down trend for last 3 years, Rane Brakes Lining has grown in terms of both Net Sales as well as Net Profit, though Marginally. It is a strong positive for this company when many companies had gone into losses. Even on Haly Yearly basis, the Net Profit has grown.

25.   We are in the process of transition from Combustion based Automobile Industry to Electric Technology based Automobile Industry. Therefore, it not difficult to understand that many Automobile Component manufacturing companies would seize to exists in coming years. However, the components manufactured by this Company would continue to be used for time immemorial (as of now) irrespective of the fact whether it a Combustion Engine based vehicle or Electric Vehicle. Therefore, due to upcoming recovery in auto sector and replacement market due to old vehicles on road, it has a very clear earning visibility in a foreseeable future.

26.   It is a market leader and gained the confidence of Automobile Companies across the world. 

27.   The Stock Price of Rane Brake Lining Limited was around Rs 40 in 2009 and it rose to around Rs 100 by 2013 year end. However, it touched a high of Rs 1450 in Jun 2017. Since then, due to poor Stock Market Sentiment and low demand in Automobile Industry, it dropped to a low of approximately Rs 450 in Aug 2019. Now the Stock is trading at Rs 556. Even now, people who bought this stock in 2009, are enjoying approximately 14 times returns. I personally believe that Rane Brake Lining should be accumulated slowly for long term exponential returns, which I am going to do. 

Disclaimer:

28.   Information Provide above has been taken from internet, which may or may not be correct. Therefore, do your own research before investing.

29.    The Post written above is not to be taken as a 'Buy Recommendation' by the author on Rane Brake Lining and no one should take decision to invest in this Stock based on he information given in this Blog. This blog is written only to express the views of the author, which could be right or wrong. You must consult your Financial Adviser before investing in Rane Brake Lining.  

My Investment Idea No. 5: Shalby Limited

Long Term Investment Idea No. 5

Shalby Limited

1.    Face Value = Rs 10

2.    Equity        = 108.01 Cr

3.    Price          =  Rs 96.2

4.  Shalby Limited is a chain of hospitals specialist in Joint Replacement and Multi-Specialty hospitals. They have total 11 hospitals as of now with 2000 beds in cities like Ahmedabad, Jaipur, Surat, Waapi, Indore, Jabalpur, Mohali etc. In addition, one hospital each coming up in Nashik and Mumbai (175 beds hospital). Total additional 500 beds capacity is being created. In addition, Rs 850 Cr have been earmarked for expansion for next 3-5 years during which plan is to double the bed capacity from 2500 beds to 5000 beds.

5.   Out of 2000 operational bed capacity, 1000 beds capacity has come up in last 2 years. As per Shalby Limited management, in spite of having 70% new capacity, Shalby limited has highest margins in the industry which amounts to 18-20% which would peak out in next 2-3 years. Shalby is also looking for opportunities in Delhi and Kolkata. Shalby Limited is also working with many hospitals in Middle East and South Africa and are in talks with many other hospitals there as well.

6.   As per management, many hospitals want to exit hospital business in India and that is a big opportunity for Shalby Limited as it is a debt free and cash surplus company. It is also a beneficiary of Ayushman Bharat as it has a very efficient cost structure.

7.   Shalby Limited was listed at approximately Rs 250 in 2018 and is now trading at a very attractive valuation at Rs 93.20. The reason for the same was due to the fact that the Profits have been declining since its listing. Half Year FY 2020 results have broken this declining trend as the Profit of Half Year FY 2020 has already surpassed the Total Profit of FY 2019. The details of its results are as given in the succeeding paragraphs.

Company's Result Overview:    

Yearly:

                       Net Sales (NS)/ Net Profit (NP)/ Earning Per Share (EPS)

8.    2017:  Rs 320.20 Cr/ Rs 63.26 Cr/ Rs 5.85

9.    2018:  Rs 382.26 Cr/ Rs 44.01 Cr/ Rs 4.07

       Yearly YoY De-Growth in NP = 30%

10.  2019:  Rs 460.95 Cr/ Rs 32.10 Cr/ Rs 2.97

       Yearly YoY De-Growth in NP = 27.06%

11.  From the above results it is clearly evident that the Profit was on decline since listing at Rs 270.

Quarterly:

12.  Jun 18 (FY 2019): Rs 115.89 Cr/ Rs 12.14 Cr/ Rs 1.12     

13.  Jun 19 (FY 2020): Rs 131.44 Cr/ Rs 23.66 Cr/ Rs 2.19

       Quarterly YoY Growth in NP = 94.89%

14.  Sep 18 (FY 2019): Rs 119.34 Cr/ Rs 3.69 Cr/ Rs 0.34

15.  Sep 19 (FY 2020): Rs 125.73 Cr/ Rs 12.9 Cr/ Rs 1.19

       Quarterly YoY Growth in NP = 249.59%

Half Yearly: 

16.   HY FY 2019: Rs 235.23 Cr/ Rs 15.83 Cr/ Rs 3.31

17.   HY FY 2020: Rs 257.17 Cr/ Rs 36.56 Cr/ Rs 3.38

        Half Yearly YoY Growth in NP = 130.95%

Promoters Stake:

18.   Promoters Holding:     79.43%

Others Stake:

19.   FII/FPI :                      5.41%

20.   Financial Institutions:  0.1%

21.   Mutual Funds:             6.73%

22.   Others:                       8.33%

My Investment Rationale:

23.   From the above, it is evident that Half Yearly Profit of Rs 36.56 Cr of this FY (FY 2020) is already more than RS 32.10 Cr Net Profit of Full FY 2019. Hence, due to change in trend  in Net Profit and the fact that the Company is Debt free and cash surplus, the investment in this Company at this stage appear attractive to me. The Company appears to be on Growth trajectory and should give decent returns in next 2-3 years as the business is going to expand for years to come.

Disclaimer:

24.   Information provided above has been taken from internet and which may or may not be correct. Therefore, do your own research before investing in this stock.

25.  The post written above is not to be taken as a 'Buy Recommendation' by the author for Shalby Limited and no one should take decision to buy this stock based on the information given in this Blog. This blog is written only to publish the views of the author, which could be right or wrong. You must consult a Financial Adviser before buying Shalby Limited. 

My Investment Idea No. 4: Mahanagar Gas Limited (MGL)

Long Term Investment Idea No. 4

Mahanagar Gas Limited (MGL)

1.    Face Value = Rs 10

2.    Equity       =  Rs 98.78 Cr

3.    Price:            Rs 1024

4.  One of the Beneficiary of the above rate cut in Gas Prices would be MAHANAGAR GAS LIMITED (MGL). MGL provides Piped Natural Gas (PNG) for  Domestic as well as Commercial/Industrial use in Mumbai and it's adjoining areas. It has 1 million domestic customers and a network of Piped Gas of about 5032 km. In addition, it sells Compresses Natural Gas (CNG) through its network of 223 CNG stations with more than 1288 dispensing points. MGL is expanding CNG network in new areas like KALYAN, DOMBIVALI, AMBERNATH, BADLAPUR, ULAHASNAGAR, BHIVANDI, PANVEL etc. It provides a cheaper mode of transportation..

5.    Results of MGL have been encouraging for past few years and Sales as well as profits have been rising steadily. Cut in Gas Prices would further add to its bottom line. It was listed at approx  Rs 500 in Aug 16. In Nov 17 it touched a high of Rs 1377 and slowly corrected to Rs 760 Sep 18. Presently it is trading at Rs 1024..

Promoters & Promoter Group Stake:

6.   GAIL:               32.50% stake

7.   Others:            10.00% stake

Other Share Holders:

8.    Mutual Funds:.                      5.96%

9.    Foreign Portfolio Investors:.  24.30%

10.  Insurance Companies:            5.7%

11.  President of India:        10% ( Central/ State Govt/ Governor Maharashtra)

Company's Result Overview:

Yearly:

                       Net Sales (NS)/ Net Profit (NP)/ Earning Per Share (EPS)

12.    2017:   Rs 2033.97 Cr/  Rs  393.42 Cr/ Rs 39.83

13.    2018:   Rs 2233.01 Cr/  Rs  477.87 Cr/ Rs 48.38

         Yearly YoY Growth in NP  =  21.46% 

14.    2019:   Rs 2791.07 Cr/  Rs  546.39 Cr/ Rs 55.31

         Yearly YoY Growth in NP  =  14.33% 

Quarterly:

15.   Jun 18 (FY 2019): Rs 619.34 Cr/  Rs 128.33 Cr/  Rs 12.99

16.   Jun 19 (FY 2020): Rs 757.47 Cr/  Rs 170.24 Cr/  Rs 17.23

        Quarterly YoY Growth in NP  =  32.65%

17.   Sep 18 (FY 2019): Rs 696.51 Cr/  Rs 136.29 Cr/  Rs 13.80

18.   Sep 19 (FY 2020): Rs 783.58 Cr/  Rs 270.62 Cr/  Rs 27.40

        Quarterly YoY Growth in NP  =   98.56%

Half Yearly:

19.   HY 2019: Rs 1315.85 Cr/  Rs 264.62 Cr/  Rs 26.89

20.   HY 2020: Rs 1541.08 Cr/  Rs 440.86 Cr/  Rs 44.63

        HY YoY Growth in NP            =   66.60%

21.   The Company is on Growth Trajectory. In my opinion this one looks like a candidate which can be accumulated slowly for long term on dips which should give decent returns in next 2-3 years as the business is only going to expand in years to come.

22.   Information provided above has been taken from internet and which may or may not be correct. Therefore, do your own research before investing in this stock.

Disclaimer:

The post written above is not to taken as a "Buy Recommendation by the author for MGL and no one should take a decision to buy this stock based on the information given in this Blog. This blog is written only to publish views of the author, which could be right or wrong. You must consult Financial Adviser before buying MGL.

My Investment Idea No. 3 - Inox Leisure

Long Term Investment Idea No. 3

Inox Leisure

1.    Face Value = Rs 10

2.    Equity = 102.64 Cr

3.    Price: Rs 358

4.    Inox Leisure operates 600 screens in 144 multiplexes spread across 68 cities. Inox Leisure is the fastest growing multiplex chain in India and has added 85 new screens in last financial year. 900 more screens are in pipeline and all will be part of Malls. It plans to add 80-100 screens every year.

5.   Sep Qtr results shows that margins increased from 12.3% to 32% YoY. F&B growth has been phenomenal and average ticket size was flat at Rs 196. Footfalls increased 39% YoY to 19 millions.

Company Results Overview

Yearly:

                         Net Sales (NS)/ Net Profit (NP)/ Earning Per Share (EPS)

6.    FY 2015: Rs 1016.82 Cr/  Rs 20.04 Cr /  Rs 1.95
7.    FY 2016: Rs 1332.69 Cr/  Rs 77.49 Cr /  Rs 7.55
       Yearly YoY Growth in NP      =  286.67% 
8.    FY 2017: Rs 1220.71 Cr/  Rs 30.62 Cr /  Rs 2.98
       Yearly YoY De-Growth in NP =  60.48%
9.    FY 2018: Rs 1348.12 Cr/  Rs 114.63Cr/  Rs 11.16
       Yearly YoY Growth in NP       =  274.36%
10.  FY 2019: Rs 1692.18 Cr/  Rs 133.49 Cr/  Rs 13.00
       Yearly YoY Growth in NP       =  16.45%

11.  In last 5 years, the profit has grown 566.117% from Rs 20.04 Cr to Rs 133.49 Cr
Jun 18 (FY 2019).

Quarterly:

12.   Jun 18 (FY 2019):  Rs 414.94 Cr/ Rs 36.99 Cr/ Rs 3.6
13.   Jun 19 (FY 2020):  Rs 493.01 Cr/ Rs 27.01Cr/  Rs 2.63
        Quarterly YoY De-Growth in NP =  26.98%
14.   Sep 18 (FY 2019): Rs 365.31 Cr/ Rs 11.97 Cr/  Rs 1.17
15.   Sep 19 (FY 2020): Rs 519.94 Cr/ Rs 35.13 Cr/  Rs 3.42
        Quarterly YoY Growth in NP       =  193.48%

Half Yearly:

16.   HY FY 2019:          Rs 779.94 Cr  /  Rs 48.96/  Rs 4.77
17.   HY FY 2020:          Rs 1012.95 Cr/  Rs 62.14/  Rs 6.05

18.   Net Profit in 1st Half of FY 2020 grew by 26.83% to Rs 62.14 Cr as compared to Net Profit of Rs 48.96 Cr for FY 2019.

19.   This stock is on my Radar. After touching a high of Rs 391 on 04 Nov 19, it corrected to Rs 352 to 353. It is now trading at Rs 366.

20.   The stock price has risen from Rs 25 in 2009 to Rs 366 as on 10 Dec 19. It has given amazing returns during these years. The management of Inox Leisure has worked tirelessly to award its shareholders in the past and I am confident that this stock is likely to reward its shareholders in future too as I personally believe that Entertainment Business is going to remain Recession Proof.

Disclaimer:

The post written above is not to be taken as a "Buy Recommendation" by the author for Inox Leisure and no should take a decision to buy this stock based on the information given in this blog. This blog is written only to publish the views of the author, which could be right or wrong. You must consult your Financial Adviser before taking a decision to invest in Inox Leisure.

My Investment Idea No. 2: - KEI Industries

Long Term Investment Idea No. 2

KEI Industries

1.     Face Value = Rs 2

2.     Equity = 16.90 Cr

3.     Price: Rs 475

4.  KEI Industries was established in 1968 as a partnership under the name KRISHNA ELECTRICAL INDUSTRIES with prime business activities of manufacturing house wiring rubber cables. Today it is grown in an Empire offering holistic wires and cables solutions with a global presence. The company offers an extensive range of cabling solutions. KEI Manufactures and markets Extra High Voltage (EHV), Medium Voltage (MV) and Low Voltage (LV) power cables. Serving both retail and institutional segments, KEI has emerged as one stop shop for products and services with its growing presence in the Engineering, Procurement and Construction (EPC) services domain. They are exporting their products to over 45 countries.

5.    The stock has risen from Rs 10 in 2009 to Rs 614 in Nov 2019 and is now trading at around Rs 475.

Company Results Overview

Yearly:
     
                          Net Sales (NP)/ Net Profit (NP)/ Earning Per Share (EPS)

6.    2015: Rs 2033.02 Cr/  Rs 34.25 Cr  /  Rs  4.05
7.    2016: Rs 2351.02 Cr/  Rs 62.55 Cr  /  Rs  7.40
       Yearly YoY Growth in NP =  82.62%
8.    2017: Rs 2628.46 Cr/  Rs 93.65 Cr  /  Rs 11.08
       Yearly YoY Growth in NP =  49.72%
9.    2018: Rs 3465.50 Cr/  Rs 144.76 Cr/  Rs 17.13
       Yearly YoY Growth in NP =  54.57%
10.  2019: Rs 4230.98 Cr/  Rs 180.86 Cr/  Rs 21.40
       Yearly YoY Growth in NP =  24.93%

Quarterly:

11.  Jun 18 (FY 2019): Rs  886.15 Cr /  Rs 32.22 Cr / Rs 3.81
12.  Jun 19 (FY 2020): Rs 1081.36 Cr/  Rs 45.73 Cr/  Rs 4.66
       Quarterly YoY Growth in NP =  41.93%
13.  Sep 18 (FY 2019): Rs 998.31 Cr  /  Rs 41.45 Cr/  Rs 4.90
14.  Sep 19 (FY 2020): Rs 1233.70 Cr/  Rs 76.08 Cr/  Rs 9.00
       Quarterly YoY Growth in NP =  83.54%

Half Yearly (HY):

15.  HY FY 2019: Rs 1884.46 Cr/  Rs    73.67 Cr/ Rs 8.71
16.  HY FY 2020: Rs 2315.06 Cr/  Rs  121.81 Cr/ Rs 13.66
       HY YoY Growth in NP =  65.35%

17.  It is worth noting that KEI Industries made a profit of Rs 180.86 in full FY 2019 where as it has made a profit of Rs 121.81 Cr in first 6 months of FY 2020 which is 65.35% up as compared to net profit of Rs 73.67 in first 6 months of FY 2020. This I consider as a bright spot in its earnings.

Company's Debt:

18.  FY 2017: Rs 813 Cr
19.  FY 2018: Rs 842 Cr
20.  FY 2019: Rs 600 Cr

Company's Manufacturing Plants:

21.  Company has four Manufacturing Plants located in New Delhi, Rajasthan and Silvassa.

Rationale For Investment as Per Google Research:

22.  Country has total of 65000 km Railway Line out which only 30000 km has been electrified since Independence. Government has plans for 100% electrification in next 4-5 years.

23.  In addition, Indian railways is making dedicated Freight Corridor which would also be electrified.

24.  It is learnt that we may have dedicated high tension cables for Industrial use. So in future, you may see two parallel lines running through the Indian Farms.

25.  Most of the Indian cities would have underground electric cables in Future.

26.  Exports of the Company is likely to grow 30-35%

27.  Housing Sector revival would further enhance consumption of housing cables.

Conclusion:

28.  Though it is a small cap share but it must be kept in mind that it has been registering tremendous growth in its Sales and NP Profit since 2009. With Government's thrust on Power Infrastructure, companies with integrity are bound to perform.

29.   Most of the information provided above has been taken from the internet and which may or may not be correct. Therefore, do your own research before investing in KEI Industries.

 Disclaimer:

The Post written above is not to be taken as a " Buy recommendation" by the author for KEI Industries and no one should take a decision to buy this stock based on the information given in this blog. This blog is written only to publish the views of the author, which could be right or wrong. You must consult your Financial Advisor before buying KEI Industries.

My Investment Idea No. 1: Gujarat Gas Limited (GGL)

Long Term Investment Idea No. 1

Gujarat Gas Limited (GGL): 

1.   Price Rs 230..

2.  Gujarat Gas Limited (GGL) is India's largest City Gas Distribution Player with its presence spread across 23 Districts in the State of Gujarat, Union Territory of Data & Nagar Haveli and Thane Geographical Area (GA) which includes Palghar District of Maharashtra..

3.   In 10th CGD bidding round announced by PNGRB, the company has won 6 GAs comprising of 17 cities in the state of Punjab, Haryana, M.P., and Rajasthan making GGL a pan India Company..

4.   GGL has India's largest consumer base in Residential, Commercial and Industrial segments.

5.  GGL has around 23,200 Kms of gas pipeline network. It has around 344 CNG stations and distributes approximately 8.5 mmdcmd of natural gas to about 13,55,000 households, approximately 2 lakh CNG Vehicles serving per day and to over 3540 Industrial Customers..

Now RESULTS🙂🙂

6.    Face Value Rs 2
7.    Equity 137.68 Cr

                Net Sales (NS) /Net Profit (NP) / Earning Per Share (EPS)

Yearly

8.    2016: Rs 6105 Cr Approx / Rs 155.87 Cr / Rs 2.26
9.    2017: Rs 5092 Cr Approx/  Rs 220.59 Cr/  Rs 3.20       
       Yearly YoY Growth in NP = 41.52%
10.  2018: Rs 6174 Cr Approx/  Rs 292.45 Cr/  Rs 4.25       
       Yearly YoY Growth in NP = 32.57%
11.  2019: Rs 7754 Cr Approx/  Rs 418.45 Cr/  Rs 6.08       
       Yearly YoY Growth in NP = 43.08%

Quarterly

12.   Jun 18: Rs 1765 Cr Approx/  Rs 122.12 Cr/   Rs 1.77
13.   Jun 19: Rs 2614 Cr Approx/  Rs 234.04 Cr/   Rs 3.4     
       Quarterly YoY Growth in NP = 91.64%
14.   Sep 18: Rs 1964 Cr Approx/ Rs 41.00 Cr/      Rs 0.59
15.   Sep 19: Rs 2512 Cr Approx/ Rs 517.03 Cr/    Rs 7.51   
        Quarterly YoY Growth in NP = 1161.04%

Half Yearly

16.   HY 2019:Rs 3730 Cr Approx/ Rs 163.10 Cr/   Rs2.36
17.   HY 2020:Rs 5126 Cr Approx/ Rs 751.07 Cr/ Rs 10.91 
        Half Yearly YoY Growth in NP = 360.49%                   

Analysis:

18.   FY 2019 full year profit Rs 418.45 Crores Vs Rs 751.07 Crores for only 6 months of FY 2020....Now u can analyse on your own😊🤣

19.   My target: At least double in 18-24 months..(I reserve the Right to be Wrong)

20.   Like MGL & IGL, GGL is also a beneficiary of reduction in Gas Prices..

21.   Happy Investing....I will wait for some meaningful correction/ Profit Booking before taking a plunge into GGL....Let's see how long do we have to wait......

22.   In my opinion 215-220 would be the region to buy it for long term....

23.   Other strategy which I could follow is to buy 25% now and rest after correction, if it happens. As far as I am concerned, I am very comfortable buying GGL at these prices for a horizon of more than one year.

24.   Most of the information provided above has been taken from www.moneycontrol.com and which may or may not be correct. Therefore, do your own research before investing in this stock.

CAUTION

The Post written above is not be taken as a "Buy Recommendation" by the author for Gujarat Gas Limited (GGL) and no one should take a decision to buy this stock based on the information given in this blog. This blog is written only to publish the views of the author, which could be right or wrong. You must consult your Financial Advisor before buying this stock (GGL).