Monday, 4 February 2013

Stock Update:CEBBCO

Salient Points from the Conference Call which was addressed by Ajay Gupta:-
  • There is nothing wrong with the operations of the company. No reason for the stock to behave the way it did in the last 2 days.
  • Deloitte is our auditor and they have not made any adverse comments about the management ever.
  • There are more than 50% non-promoter board members
  • Tata Capital has a board member by virtue of their 11% stake in the company. He sits on the management committee and audit committee of the company
  • The inter se transfer of shares was requested for because they wanted to create a family trust for tax efficiency. Ajay Gupta and others would transfer their shares to Mr Kailash Gupta and he would then in turn create the trust where all of the promoters would have a stake as before. Because of the many rumours in the market related to this, they have now put this on hold, atleast till Oct 2013 (3 years of listing)
  • For the FBV, the company is running at full capacity.
  • There is a small delay in capacity expansion - expecting it to be ready in Q4 and available for the full FY14.
  • There is no change in the dividend policy of 20% of PAT 
I did not get a feeling that there is something majorly wrong with the company (I may be wrong, but that is the impression I had) . I will wait for a day or two and probably add on some more.

13 comments:

  1. Abhishek,

    Whats your opinion about entering at this level?, 45 i mean

    ReplyDelete
    Replies
    1. Difficult to say. I bought at 47.7 levels. But that is more of averaging my holdings. For fresh purchases, it is a difficult call to make. Seems to have a speculative fervor at this point in time. May need some time to settle down before some clarity emerges. So, if you don't have a position in the stock, I would think it is better to stay away for some more time.

      Delete
  2. Abhishek i have posted a question in supreme vs astral thread
    It will be very helpful if you could answer the same.
    And further astral have got the approval for the blazemaster. So you guide me in the following perspective.
    Thanks.

    ReplyDelete
    Replies
    1. You can buy both Astral & Supreme at CMP. Don't buy in one go, but buy in smaller chunks over a period of time to average out any fluctuations.

      Delete
  3. Thanks abhishek.
    One more thing like blazemaster has opened a 1000 cr. Market for astral and astral has a kind of monpoly there. What price range are we expecting for astral and supreme may be 2 -3 quarters down the line. And what about about pi industries. Citi have entered at rs. 609 and jambusar facility work has started as per the announcement. I think we have a re rating on the cards.
    Sorry for the questions but will be very helpful if i can get your perspective on the above 2 questions.
    Thanks a ton in advance.
    PS: astral amd pi are my holdings planning to enter supreme.

    ReplyDelete
    Replies
    1. Well, Supreme & Astral are in my top 3 holdings. I have bought PI Ind once more in the last quarter. Planning to add more. So, I am bullish on all 3.

      Delete
  4. Abhishek...

    I post under the name Maverick at valuepickr...
    I have observed some recent positive changes in Kaveri quarterly statement... I would request you to have a look at the same...
    Thanks...

    ReplyDelete
    Replies
    1. I am invested in Kaveri and believe it is a long term bet. Both Kaveri & PI Industries. I am looking at Finolex Cables, Poly Medicure, Unichem Lab & Ajanta Pharma at this time. I have neither of these in my portfolio.

      Also, thinking of booking my losses in CEBBCO, because with the current sentiment, I doubt if it will recover any time soon.

      Delete
  5. Good selection abhishek.
    Further this mid cap carnage provieds an excellent entry points in some such as unichem closed today at 171...
    Ajanta is a great story seeing their performance they are set for a excellent 4th quarter which is also supposwd to be their best...
    Finolex with its recent tie up with kec is providing a trigger further good margin improvement will be the key factor...
    Poly medicure great past performance forex issue resolved plus growing industry offers great growth story for this company... It can act as a good portfolio stabilizer also...
    Further in recent midcap fall none of the above stock has eroded wealth of their shareholders they all mostly have been firm...

    Waiting for your views...
    And 1 thing is am not able to decide is how much to allocate betwen astral and supreme at cmp... Your guidance will help...
    Thank you...

    ReplyDelete
    Replies
    1. that is a very difficult call to make. depends completely on your conviction levels. Astral is likely to grow faster but be more volatile (stock prices) than Supreme. Also, personally I think Supreme is on the higher end of its valuation level, so I would not go overboard with it. {here I maybe having a anchoring bias as I bought it at 1/10 the CMP, but I don't think so :-)}...

      Delete
  6. Hi Abhishek
    Thanks for the reply...
    I think you were also looking at fluidomat...
    here is a ppt on the company may be this will help...
    http://multireturns.files.wordpress.com/2012/04/fluidomat_multireturns.pdf
    and a report by CARE
    http://www.scribd.com/doc/127033422/Fluidomat-BSE-CARE

    Seems to be a good growth story...
    will wait for your views...

    Also if possible please do post your updated portfolio (allocation and picks)or when you make some changes...
    Thanks...

    ReplyDelete

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