Thursday, 20 September 2012

Screener.in -- Excellent resource for investors

I happened to look closely at www.screener.in today. For those of you who have not looked at it, I strongly suggest you do. At first glance, there are many things which I found to be excellent. I usually use moneycontrol and the edelweiss screener but I think this is as good if not better. The company data is definitely better than moneycontrol as it gives a 10 year view.

Here are the things which I really liked.

For Company Data:
  1. Historical annual data for the past 10 years
  2. A graphical view of the promoter holding for the last 5 years.
  3. Quick view charts on operating performance and stock price vis-a-vis Sensex
  4. Peer Comparison
  5. Points out some very key Pro's & Con's for the company/stock
 For the Screener Functionality:
  1. Built in screens (there are quite a lot of very good built in screens available)
  2. Ability to create your own screens 
  3. Ability to create email alerts for the screens (this is really great for lazy people like me)
  Dislclosure: I am not connected to screener.in and am not soliciting users on its behalf :-)

Monday, 17 September 2012

Stock View: Cravatex


Cravatex is mainly a trading company. It sells fitness equipment (gym and home exercising) under the “Proline Fitness” brand. It is also the sole distributor of FILA and Dunlop in India. Primary customers are gyms and retail customers.

The sector is growing. Health consciousness in growing a lot. Talwalkar’s and Gold’s Gym are growing well. Talkwalkar’s expect to grow 30% in the next 2-3 yrs.
Cravatex has strategic tie-ups with both these chains.


FILA has the lowest market share amongst the established brands of international footwear in India. The market leader is Adidas (including Reebok), followed by Nike & Puma. FILA is just getting into the market and is competitively priced. So, market share is likely to increase provided it can increase its distribution capacity significantly. In the fitness space, the company has 28% of market share.

The promoter holding has been consistent at 75% over a fairly long period.

The company's networth has been steadily rising. From 10.74cr (2002-03) to 30.85 cr (2012).

It has increased its RoE significantly in the last 3 years. This has come mainly from an increase in net margins (probably the FILA brand making its impact felt).

Risks & Concerns

Total debt is 28.14 cr (cons). It has gone up from 17.64 cr (cons) from 2011. D/E is 0.87. It seems to be on the higher side.
Cash flow has been consistently negative over the last 3-4 years.


Valuation


Cashflow is negative so can't really do a DCF analysis.

On EPS estimates, with an assumption of 15% growth for 2013 & 2014, the expected EPS are 36 & 42 for the next 2 years.

Assuming a PE range between 10-15, the optimistic and pessimistic price ranges work out to:-

2013 –> 367 to 551
2014 -> 420 to 630




Conclusion: At CMP (425), the stock price has nearly halved from its high of nearly Rs. 800. The results for Q2 is also likely to be weak and the under-performance for the stock is likely to continue for some more time. On the medium term, however, the stock is priced well enough for adventurous investors to take a bite.

Disclaimer: I am invested in the stock and have a vested interest. Please do your own due diligence before investing.

Friday, 14 September 2012

Stock Update: Cera Sanitaryware

The company announced that it has appointed Shri S.C. Kothari, as C.E.O. of the Company. Mr Kothari  joined Cera as Corporate Finance Head. In 2002 was made CEO of the company. He had retired from the company in Aug.2008. So, this looks like an interim measure to bring in the previous CEO back at the helm. 

I am getting a feeling that option 3 is playing out from my previous post.

Valuation for the company and political uncertainty in India continues to be high and investors need to be cautious.

P.S.: Looking at some companies. Should be able to post about them in a couple of weeks.

Saturday, 8 September 2012

Stock Update: Cera Sanitaryware

With the untimely death of Mr. Vidush Somany, the MD of Cera, there are a lot of questions in the mind of investors. Here are possibilities:-

1) There will not be any significant long term impact to the performance to the company. Mr. Vikram Somany, the founder and CMD of the company will continue to drive the company.

2) If there are no natural successors, then Mr. Vikram Somany may decide to sell out to another company at a later point in time.

3) If there are other potential natural successors, then Mr. Vikram Somany may continue at the helm or hand over to a professional CEO, till the successor is groomed.

Whichever scenario plays out, the business may see short-to-medium term weakness as it adjusts itself on the loss of its prime mover. The valuation is also not cheap.

Recommendation: Adventurous investors can continue to hold with a stop loss around 320-325 levels. I would suggest gradual profit booking of atleast 50% of your positions and then waiting to see how the business actually pans out. At this moment the risk-reward is NOT in favour of the long term investor.

Disclosure: I am invested in Cera Sanitrayware and HSIL and my views are likely to be biased. Please do your own due diligence before investing.

Tuesday, 4 September 2012

Supreme Industries Vs Astral Poly: Quick Look

Here is a quick look at Supreme vs Astral:



Astral
Supreme
CMP
286
280
Face Value of Share
5
2
Sales
609.31
2962.2
Net Profit
39.46
240.52
Op Margin
14.15%
15.85%
Net Margin
6.83%
8.08%
RoCE
28.83%
45.6%
RoNW
21.55%
37.5%
Debt-Equity
0.34
0.4
Inventory Turnover
4.96
9.44
Asset Turnover
2.86
2.39
Material Cost
75.32
65.82
Dividend Payout Ratio
7.39
36.82
PE
15.17
14.9
P/B
3.49
5.58
Div Yield
0.4%
2.13%
Last 5 yr Rev Growth
42%
22%
Last 5 yr Profit Growth
23.51%
47.29%
  


The numbers are probably self-explanatory! Interestingly, Supreme has consistently improved its RoCE over the last 10 years. It used to be around 10% in 2002-03 and has moved to nearly 45% currently. It's CPVC business has grown 60% this year.

What I am most interested in is however, the composites business, which I think may be a big differentiator. This is their 5th and newest line of business. The company has received ISO approval for making fibre glass gas cylinders and is expected to start their trial run from Jan'13.




Disclaimer: I am invested in both Supreme and Astral and they are in top 5 holdings in my portfolio.

Learning from Security Analysis - Part 1

I have started re-reading Security Analysis, 6th edition, (also will add on things from the 5th ed). I have been putting it on the backburn...