Unveiling the Brew-tiful Potential of Tata Consumer Products - A Multibagger Stock Worth Considering

Tata Consumer Products Limited (TCPL) Share latest news:

Hey there, fellow investors! 

Today, we're going to take a closer look at the recent performance of Tata Consumer Products (TCPL), the Indian FMCG major, and discover why it might be the perfect blend for your investment portfolio. With its latest financial results for the June quarter of FY24, TCPL has shown impressive growth that has the potential to make it a valuable asset for value investors in the large-cap market. TCPL seems to the best FMCG stocks to buy now for longterm investment. The stock has already given multibagger return and still has potential to be next larg cap multibagger stock.

TCPL's Thriving Q1 Performance:

In the first quarter of FY24, TCPL reported a consolidated net profit of Rs 358.57 crore, marking a significant 29 percent growth compared to the same period last year. The group net profit also surged by 22 percent to Rs 338 Crores. The company's ability to register consistent profit growth, quarter after quarter, is undoubtedly a positive sign for long-term investors.

Revenue Growth and Diverse Business Segments:

TCPL's total revenue for the quarter stood at Rs 3741.21 crore, an impressive 12.45 percent rise from the year-ago quarter. This exceptional growth can be attributed to the solid performance of its India business, which saw a remarkable 16 percent rise. Moreover, the international and non-branded businesses also contributed positively, growing by 3 percent and 5 percent (constant currency), respectively.

Key Drivers of Success:

TCPL's India packaged beverages business and India foods business were the star performers during the quarter, displaying revenue growth rates of 2 percent and 24 percent, respectively. The company's popular tea brands, Tata Tea Premium and Tata Tea Agni, led the charge with strong volume growth. Additionally, the coffee segment showed impressive revenue growth of 21 percent YoY.

NourishCo, TCPL's RTD business, recorded a whopping 60 percent revenue growth despite facing adverse weather conditions. Tata Soulfull, with its exciting new launches and entry into new categories, expanded its Total Addressable Market and continues to be a strong performer.

Embracing Innovation:

TCPL's commitment to innovation shines through, as the company maintained an innovation-to-sales ratio of 5 percent during Q1. This strategic focus on innovation fuels the company's growth and ability to stay ahead of the competition.

Strong Global Presence:

Not only is TCPL thriving in the domestic market, but its brands in the UK, including Tetley, Good Earth, and teapigs, also gained value market share in the last quarter. Additionally, Tata Starbucks recorded an impressive revenue growth of 21 percent, showcasing the company's international success.

Looking Ahead:

With the Q1 results exceeding market estimates, TCPL has showcased its resilience and potential as a multibagger stock for long-term investors. The company's expansion into new markets, consistent profit growth, and strong portfolio of popular brands make it an attractive proposition for value investors in the large-cap space.

Tata Consumer Products Limited share price Target 

Brokerage Citi has assigned a target price of Rs 1020 to the Tata Consumer products ltd's stock. Citi has initiated coverage of the stock with a buy call.

"We value Tata Consumer on a SoTP-based approach given different stages of growth/profitability across segments. Our Rs 1,020 target price implies a multiple of 56x Mar-25E, 5% premium to the stock's 3-year historical avg. Market share gains and premiumisation in core categories, increasing salience of new categories and improving financial metrics could keep absolute multiples elevated. Our picking in India staples is now Hindustan Unilever, Godrej Consumer and Tata Consumer," said Citi.

Conclusion:

So there you have it, folks! Tata Consumer Products has proven itself as a strong contender in the FMCG sector, exhibiting robust growth and resilience in the face of challenges. As an investor, TCPL's performance, coupled with its strategic focus on innovation and diverse business segments, makes it a compelling choice for your long-term investment goals. Remember, though investments carry inherent risks, this potential multibagger stock presents an enticing opportunity worth considering.

Disclaimer: This blog post does not constitute financial advice. Always conduct thorough research and consult with a financial advisor before making investment decisions. Happy investing!

Why Gujarat Ambuja Exports Ltd is a Solid Bet for Multibagger Returns!

Why Gujarat Ambuja Exports Ltd is a Solid Bet for Multibagger Returns!

Discover the multibagger potential of Gujarat Ambuja Exports Ltd, a promising small cap stock in the agro-processing sector. Learn about its diverse product portfolio, robust financials, and strategic growth initiatives that make it a compelling investment opportunity for 2023-2025.

Gujarat Ambuja Exports Ltd (GAEL) has emerged as a potential small cap multibagger share, attracting the attention of investors seeking exponential returns. As a debt-free company with a diverse product portfolio, including Corn Starch Derivatives, Soya Derivatives, Feed Ingredients, Cotton Yarn, and Edible Oils, GAEL is well-positioned for growth in the agro-processing sector. The company's solid financial performance and efficient capital utilization have led market analysts to set optimistic share price targets for 2023 and 2025.

Unlocking the Potential of Gujarat Ambuja Exports Ltd: A Small Cap Multibagger Share to Watch in 2023-2025

In recent news, Gujarat Ambuja Exports has been exploring opportunities in the ethanol industry, further diversifying its product offerings and strengthening its market position. This latest development adds to the company's appeal as a promising investment opportunity. Investors can track GAEL's share price using stock screeners to stay updated on its performance and make informed decisions.

Owned by the Gujarat Ambuja Group, GAEL continues to make headlines for its strategic moves and growth initiatives. The company's commitment to innovation and expansion, coupled with its robust financials, make it a compelling choice for those seeking a multibagger stock with strong potential for appreciation in the coming years. Keep an eye on GAEL's latest news and developments to stay ahead of the curve and make the most of this investment opportunity.

Top of Form

The search for a multibagger stock is every investor's dream, and Gujarat Ambuja Exports Ltd (GAEL) appears to be a promising candidate. With its diverse portfolio, strong fundamentals, and impressive financial performance, GAEL seems well-positioned to deliver exponential returns in the coming years. 

"Gujarat Ambuja Exports Ltd: The Small Cap Gem Poised for Multibagger Growth in the Agro-Processing Sector"

Here are the essential reasons why Gujarat Ambuja Exports Ltd, with a current market price (CMP) of ₹266 [As of 13^th April, 2023], is a solid bet for multibagger returns:

1.     Diversified Business Portfolio: GAEL is engaged in the manufacturing of Corn Starch Derivatives, Soya Derivatives, Feed Ingredients, Cotton Yarn, and Edible Oils. This diversified product portfolio ensures that the company is less vulnerable to industry-specific risks and can cater to various sectors such as Food, Pharmaceutical, and Feed industries.

2.     Strong Financial Performance: GAEL has shown remarkable financial performance, with an exceptional return on equity (ROE) of 25% and a healthy pre-tax margin of 14%. The company is also debt-free, which is a strong indicator of financial stability and paves the way for sustainable earnings growth.

3.     Robust Operating Metrics: The company's return on capital employed (ROCE) is an impressive 30.4%, indicating efficient use of capital in generating profits. The cash conversion cycle is also favorable, reflecting the company's effective management of working capital.

4.     Growth Potential in Agro-Processing Sector: GAEL is strategically positioned in the agro-processing sector, which is poised for significant growth in the coming years. With increasing demand for processed foods, pharmaceuticals, and animal feed, GAEL's product offerings are well-aligned with market needs, enabling the company to capitalize on emerging opportunities.

5.     Attractive Valuation: GAEL's stock is currently trading at a price-to-earnings (P/E) ratio of 14.7, which is relatively attractive compared to industry peers. The stock also has a healthy dividend yield of 0.24%, rewarding investors with regular income.

6.     Technical Outlook: Though the stock is currently trading below its key moving averages, a break above these levels could trigger a bullish trend, leading to significant price appreciation.

"Discovering the Multibagger Potential of Gujarat Ambuja Exports Ltd: A Small Cap Powerhouse in the Making"

7. Expansion Plans and Investments: GAEL has demonstrated a consistent focus on expanding its capacity and enhancing its product offerings. The company's investments in fixed assets, current work-in-progress projects, and other assets have grown over the years, highlighting its commitment to long-term growth. These investments will likely enable GAEL to capture a larger market share and improve its competitive position.
8. Strong Management and Corporate Governance: GAEL's management team has a proven track record of steering the company towards growth and profitability. They have consistently made strategic decisions that have positioned the company for success in the agro-processing sector. Moreover, GAEL's commitment to strong corporate governance practices ensures the interests of all stakeholders are protected and fosters investor confidence.
9. Increasing Demand for Eco-Friendly and Sustainable Products: With a growing global emphasis on sustainability and eco-friendly practices, the demand for products derived from renewable sources like corn and soy is set to increase. GAEL, with its focus on such products, is well-positioned to benefit from this trend and cater to the evolving preferences of consumers and industries alike.
10. Government Support and Policies: The Indian government has been actively promoting the agro-processing sector, recognizing its potential to drive economic growth and employment. Various policy measures, such as infrastructure development, tax incentives, and financial support, have been introduced to encourage investments in this sector. GAEL, as a key player in the agro-processing industry, is poised to benefit from these supportive government policies and initiatives.
11. Favorable Industry Tailwinds: The global agro-processing sector is expected to witness strong growth in the coming years, driven by factors such as population growth, urbanization, rising disposable incomes, and changing consumer preferences. As a result, the demand for GAEL's products is likely to increase, enabling the company to achieve robust revenue and profit growth.
12. Resilience during Business Cycles: GAEL's strong balance sheet, debt-free status, and diverse product portfolio enable it to weather business cycles effectively. This resilience bodes well for the company's long-term prospects and ensures that it can continue to deliver stable earnings growth, even in challenging market conditions.

"Investing in the Future: Why Gujarat Ambuja Exports Ltd is Your Ticket to Multibagger Returns"

Taking these factors into account, Gujarat Ambuja Exports Ltd emerges as an excellent investment opportunity for those seeking multibagger returns. With its diverse product portfolio, strong financials, growth potential, and favorable industry dynamics, GAEL is poised for significant value creation in the coming years. In conclusion, Gujarat Ambuja Exports Ltd's diversified business model, strong financial performance, growth potential, and attractive valuations make it a compelling investment for those seeking multibagger returns. Investors with a long-term perspective should consider adding GAEL to their portfolios and capitalize on the company's promising growth trajectory.

"Seizing the Opportunity: Gujarat Ambuja Exports Ltd as the Ultimate Small Cap Multibagger Share for 2023-2025"

Understanding the Matrics;

Here are the key findings that can help investors make an informed decision about investing in Gujarat Ambuja Exports Ltd:

1. Market Capitalization: The company has a market capitalization of ₹6,090 Cr, which indicates that it is a mid-cap stock. Mid-cap stocks generally provide a balance between growth and stability, offering potential for higher returns compared to large-cap stocks while having lower volatility compared to small-cap stocks.
2. Stock Price Performance: The stock has traded in a range of ₹394 (52-week high) to ₹215 (52-week low), with the current price at ₹266. This indicates that the stock is trading closer to its 52-week low, presenting a potential buying opportunity for investors.
3. Valuation Ratios: The stock has a Price-to-Earnings (P/E) ratio of 14.7 and a Book Value of ₹99.9. The P/E ratio is relatively attractive compared to industry peers, suggesting that the stock may be undervalued. The Book Value provides a measure of the company's net worth, and a higher Book Value is generally considered favorable.
4. Dividend Yield: The company offers a dividend yield of 0.24%, providing investors with a modest income stream in addition to potential capital appreciation.
5. Return on Capital Employed (ROCE) and Return on Equity (ROE): The company's ROCE is 30.4%, while its ROE is 25.0%. These figures indicate efficient utilization of capital and above-average profitability compared to industry peers.
6. Debt-Free Status: GAEL is a debt-free company, which indicates a strong financial position and lowers the risk associated with high debt levels.
7. Operating Revenue and Profit Margins: The company has an operating revenue of ₹4,844.12 Cr on a trailing 12-month basis, with an annual revenue de-growth of 0%. Although revenue growth needs improvement, GAEL's pre-tax margin of 14% is healthy, and its ROE of 22% is exceptional.
8. Business Overview: GAEL operates in the agro-processing sector, manufacturing a diverse range of products, including Corn Starch Derivatives, Soya Derivatives, Feed Ingredients, Cotton Yarn, and Edible Oils. This diversification helps mitigate risks associated with any single industry or product segment.
9. Financial Performance: The company's sales, net profit, and earnings per share (EPS) have shown growth over the years, indicating a strong financial performance. The recent decline in sales growth and EPS can be seen as a potential area for improvement.
10. Cash Flow Management: The company has demonstrated positive cash flow from operating activities, which is essential for funding business growth and paying dividends to shareholders.

The key findings suggest that Gujarat Ambuja Exports Ltd is a fundamentally strong company with an attractive valuation and potential for growth in the agro-processing sector. Investors considering adding GAEL to their portfolio should weigh these findings against their investment objectives, risk tolerance, and the overall market conditions before making a decision.

Top of Form

 Gujarat Ambuja Exports Ltd stands out as a promising small cap stock with strong multibagger potential. Its diverse product offerings, debt-free status, and impressive financial performance make it an attractive investment opportunity for those seeking exponential returns in the coming years. As the company continues to explore new avenues for growth, such as the ethanol industry, investors should keep an eye on the latest news and developments to stay ahead of the curve. Don't miss out on this exceptional investment opportunity, as Gujarat Ambuja Exports Ltd could very well be the key to unlocking significant wealth in the agro-processing sector.

Tax Saving Investment Options: ELSS, PPF, NPS and More

Explore various tax-saving investment options in India, including ELSS, PPF, NPS, and more. Learn the benefits, features, and eligibility criteria to make well-informed investment decisions.

"Discover the best tax-saving investment options in India, including ELSS, PPF, NPS, SSY, and more, to help you maximize your savings and build a secure financial future. Our comprehensive guide covers everything from the benefits of Equity-Linked Saving Schemes and Public Provident Funds to the features of National Pension System and Sukanya Samriddhi Yojana. Additionally, learn about insurance policies, ULIPs, and other Section 80C investments that can help you save tax while achieving your financial goals. Stay ahead in the world of personal finance by making well-informed investment decisions with our expert insights and guidance."

Tax Saving Investment Options: ELSS, PPF, NPS and More

Saving tax is a crucial aspect of financial planning, and India offers numerous investment options to help investors save tax while also growing their wealth. In this post, we will discuss the popular tax-saving investment options, such as Equity-Linked Saving Scheme (ELSS), Public Provident Fund (PPF), National Pension System (NPS), and more. By understanding the benefits, features, and eligibility criteria of these instruments, you can make informed decisions that align with your financial goals and risk appetite.

1.    Equity-Linked Saving Scheme (ELSS)

ELSS is a type of diversified equity mutual fund that qualifies for tax deductions under Section 80C of the Income Tax Act. These funds invest primarily in equity and equity-related instruments, offering the potential for higher returns compared to other tax-saving options.

a. Lock-in Period: ELSS has a lock-in period of three years, making it a relatively more liquid option among tax-saving investments.

b. Tax Benefits: Investments in ELSS qualify for tax deductions up to ₹1.5 lakh per financial year under Section 80C.

c. Risk Profile: As ELSS funds invest in equities, they carry a higher risk compared to debt-oriented tax-saving instruments. However, they also offer the potential for higher returns in the long run.

2.    Public Provident Fund (PPF)

PPF is a long-term, government-backed savings scheme that offers tax benefits and a secure, fixed return on investment.

a. Lock-in Period: PPF has a lock-in period of 15 years, with the option to extend the account in blocks of five years after maturity.

b. Tax Benefits: Investments in PPF are eligible for tax deductions up to ₹1.5 lakh per financial year under Section 80C. The interest earned and the maturity amount are also tax-exempt.

c. Risk Profile: PPF is a low-risk investment option, as it is backed by the government and offers a guaranteed, fixed interest rate.

3.    National Pension System (NPS)

NPS is a voluntary, government-backed pension scheme aimed at providing financial security during retirement. It invests in a mix of equity, corporate bonds, and government securities.

a. Lock-in Period: NPS has a lock-in period until the investor reaches the age of 60, with a minimum of 10 years of contribution.

b. Tax Benefits: Investments in NPS qualify for tax deductions up to ₹1.5 lakh per financial year under Section 80C. Additionally, an exclusive deduction of ₹50,000 is available under Section 80CCD(1B).

c. Risk Profile: The risk profile of NPS depends on the chosen investment mix, with options ranging from conservative to aggressive.

4.    Other Tax-Saving Investment Options

Apart from ELSS, PPF, and NPS, there are several other tax-saving investment options to consider:

a. 5-Year Tax-Saving Fixed Deposits: Offered by banks, these fixed deposits qualify for tax deductions under Section 80C, with a lock-in period of five years.

b. Life Insurance Policies: Premiums paid towards life insurance policies, including term plans, endowment plans, and Unit-Linked Insurance Plans (ULIPs), are eligible for tax deductions under Section 80C.

Keywords: Tax Saving Investment Options, ELSS, PPF, NPS, SSY, Sukanya Samriddhi Yojana, LIC, insurance, ULIP, 80C investments.

Jindal Saw Stock Idea : INTEGRATED INFRASTRUCTURE PROXY

JINDAL SAW: FULLY INTEGRATED INFRASTRUCTURE PROXY 

Jindal Saw - LTP 139 (As on 02.08.2021)

Jindal SAW Ltd. is the market leader capacity wise in manufacturing of large diameter Submerged Arc Welded (SAW) Pipes using U-O-E, J-C-O and Helical processes. The SAW Pipes are mainly used in transportation of Oil, Gas, Slurry and Water.

The first SAW Pipe mill (UOE) was commissioned in the year 1987 in Kosi Kalan, Uttar Pradesh. With the opening of this mill, Jindal SAW Ltd. became the first Pipe mill to produce LSAW Pipes in India.

Jindal SAW Ltd. has manufactured and supplied more than 36,000 kms of Line pipes & exported in excess of 17,000 Kms of Line pipes for on-shore and off-shore pipeline projects across the world. This division is the market leader in its segment in India and has supplied pipes for major pipeline projects in the Middle East, North America, Latin America, Africa, Europe, Australia, CIS and Asia.

Key Highlight

• Jindal Saw is the only company in the world that provides Total Pipe Solutions 
• Jindal Saw is 2nd largest Pipe exporter in Asia Pacific region 
• It is 3rd largest producer of DI Pipes in the world 
• Jindal Saw has shown a big margin expansion aided by Higher Realisation.

 Stock is bullish after Spectacular Q1 Results 

Q1 Result Highlights: Q1FY22 vs Q1FY21

▪️ Volumes at 0.62 MT vs 0.39 MT (+59% YoY)
▪️ Realisation/T came at 38740 cr vs 34214cr (+13.2% YoY)
▪️ Revenue at 2417cr vs 1346cr (+80% YoY)
▪️ EBIDTA at 355cr vs 151cr (+135% YoY)
▪️ EBITDA Margin came at 14.7% vs 11.2% (+350bps YoY)
▪️ PAT at 146cr vs loss of 27cr
▪️ EPS of 4.78 vs (0.29)

FY22E EPS of 25 easily achievable as Q4 is always peak performance quarter and co has already delivered superb performance during Q1.

Co trades at just 5.5X FY22E EPS 

▫️Jindal Saw is the market leader capacity wise in manufacturing of large diameter Submerged Arc Welded (SAW) Pipes

▫️Jindal Saw also provides relevant, value-added services by way of specialized internal and external Anti-Corrosion Coatings, Connector Casings, Hot Pulled Induction Bends etc

▫️Co has 8 state of the art Pipe manufacturing plants under operation

▫️Exports to more than 40 countries

Co has exported approx 17000 KM of higher API grade pipes & has the highest customer reach by any Indian Pipe manufacturer

▫️ Co is backward integrated as it has Iron Ore mines in Rajasthan 

▫️ The Integrated Greenfield project of Ductile Iron pipe & Pig Iron is located close to Mundra & Kandla ports 

 Products: 

• Saw Pipes  
• Ductile Iron Pipes & Fittings  
• Carbon, Alloy, 
• Stainless Steel Pipes & Tubes  
• Pellets

 Even at a conservative P/E of 12x, stock price will reach 300 or even more 

 Jindal Saw deserves a P/E of at least 15x. TP at 15 P/E comes to Target Price of Rs. 375/- 

 Market Experts are bullish on Jindal Saw stock at CMP and advise a STRONG BUY

**Above Post is subject to market conditions. Personal due diligence advised

Hindustan Oil (HOEC) is Ready to Fly

Hindustan Oil Set to Turn a Discovered Small Field (DSF-III) Success Story

HOEC is expected to start production from the block during the third quarter of the current financial year. The Company is seeing a ten-fold rise in the reserves based on the latest estimates.

At a time when the government is rolling out the red carpet for investors under the third round of Discovered Small Field (DSF-III) auctions, Chennai-based Hindustan Oil Exploration Company (HOEC) has claimed that based on the latest estimates, B80 block — that it won during the first round of DSF — has seen a tenfold rise in oil and gas reserves. The company is expected to start production from the block during the third quarter of the current financial year. With B80 in place, total production by the company is expected to increase from 2,300 barrels of oil equivalent per day (BOEPD) to 7,000 BOEPD.

The story of HOEC begins in 1983, when the great visionary, the Late Shri H.T. Parekh foresaw the need for a private stake in India's Oil & Gas sector. After over 3 decades, HOEC has now emerged as a fast growing independent E&P operator in India. HOEC now, through its operations, supplies 10,000 boe of products to the nation daily, across 4 of the 7 production basins in India. HOEC Ltd achieved it's success by adopting a low-cost rapid development model with a focus on local content, innovation and sustainable practices. HOEC aims to create long-term stakeholder value and ensures "grow responsibly".

Multiple keys to turn a Multibagger Stock

It is at a time when the majority of players, who won blocks under the DSF, are struggling to start production. A total of 54 contract areas were awarded in the first two rounds of DSF, out of which the DGH has received field development plans for 29 areas.

“We are seeing a multifold rise in the reserves based on the latest estimates. The pre-bid expected volume was around 1.8 million metric tonnne (MT) of oil and 0.25 million metric tonne of oil equivalent (MMTOE) gas. This has increased to 18.6 MT and 3.1 MMTOE now,” said P Elango, managing director (MD) of the company. 

According to the company, with the rise in estimates, the value of reserves also increased from $35 million pre-bid to $365 million now (at a price of $65 a barrel). The company is investing $40 million in the block for two wells, in addition to four wells already drilled by the Oil and Natural Gas Corporation (ONGC).

 “The reason for such increase is on account of post-development drilling, whereby HOEC revised the B80 three- dimensional geological model by applying all the data from the field, which include all the six wells,” he added. 

B80 block in the Arabian Sea, off the Mumbai coast, had its first discovery by ONGC in 1987. HOEC won the block in September 2017, when the government came out with small field auctions to attract new investors to the sector. These were small oil and gas discoveries made by public sector undertaking oil companies, ONGC and Oil India (OIL). But these state-run companies could not develop it due to various reasons, including unviability, small size and restrictive fiscal regimes. 

Though HOEC and Adbhoot Estates had equal stake in B80 initially, the Chennai-based company increased its stake to 60 per cent last year. The company had raised a Rs. 150-crore loan during that time for the acquisition and other project development works. The third round for which the government is scouting for investors includes 32 contract areas. 

These comprise 75 discoveries, spread over 9 sedimentary basins covering an area of about 13,685 square kilometres. These blocks are expected to have a potential of approximately 232 million tonne. The government is set to conduct roadshows at overseas destinations like Perth, Singapore, Houston and London as well as domestic locations like New Delhi, Mumbai and Gandhi Nagar, said sources.

HOEC: Highlights

Mkt Cap (Rs. Cr.)                2,234 Dividend Yield --
52 Week High	173.40
52 Week Low	60.35

TTM EPS	4.04
TTM PE	41.83
Sector PE	12.93
Book Value Per Share	55.44
P/B	3.05
Face Value	10

• Stock Price of HOEC is quoting at Rs. 150.90 at NSE on EOD 02-08-2021. 
• Market Gurus believe that Hind Oil Exploration (HOEC) is still great buy after a decent rally in last week.
• Backed by lowest cost evacuation of crude the stock is poised to trade outside its chart territory. 
• Glorious margins coming. 
• If crude don't fall below 50 dollars, stock price is possible to give multibagger return to its stockholders  in next two years.

Top Search keywords; HOEC;

hoec share price target, ongc share price, hoec share price nse, hindoilexp share price, hindustan oil exploration rakesh jhunjhunwala, hindustan oil share price forecast, hoec multibagger, hoec stock price latest news, hoec share price investment idea, hoec intraday price target, hoec hidden gem, hoec trading idea, hoec share price 52 week high low, hoec shareholding pattern, hoec stock ideas, hoec money n business, is hoec a multibagger stock.

Disclaimer;  the above post is based on information available across internet, it is just a compilation of different reports. This post should be treated as an informational post only and it is not a buying call. Please consult your financial adviser before investing in the stock discussed in the post.

Butterfly Gandhimati a multibagger in making

Sector: Consumer Durables
Industry: Electronics/Appliances

LTP : 274 (Jan25, 2020)

NSE: BUTTERFLY

Butterfly Gandhimathi Appliances Ltd. engages in manufacture of household appliances. Its products include mixer grinder, LPG stove, pressure cooker, table top wet grinder, water heater, electric fans, air coolers, electric iron, and others. The company was founded on February 24, 1986 and is headquartered in Chennai, India.

the company has reported a net profit of Rs 8.38 crore on revenues of Rs 241.44 crore For the September quarter of 2019. The company EPS for the September quarter of 2019 stood at Rs 4.50.

I find this company to be one of the most exciting investment ideas currently and would like to present it to the wider investment community. However, if there is any existing thread on this company, then the moderators may close this.

At the outset I would like to apologies as I have been wanting to initiate a post on this company since long. However, my perennial laziness has prevented me from doing so till now (It has also prevented me from initiating any thread till now for that matter). In the meanwhile, the company has runaway to a market cap of Rs.1,100 Crores.

Most of the investment Hypothesis can be read through from the attached report where the analyst has articulate the key drivers very well. To save time, effort and space I would like to run you through the key drivers of this story. Although a bit dated, it captures most of the points well.

Secular Growth Story- Kitchen appliances sector has always been a darling of the Stock Market and we all know the stratospheric valuations commanded by companies who have exhibited profitable growth strategies in this segment. Specifically, the sub-segments in which the company operates, there is a large segment of unorganized market (in some case, as high as 50%) which is expected to be consolidated rapidly post introduction of GST. Hence, I expect the company to exhibit impressive market share gains in its key markets and segments. Would advise you to go through the latest investor presentation as attached to understand their key sub-segments among other things. Most of it is pretty self explanatory.

This counter was badly beaten down in mid n small cap mayhem as valuations were too high. But from last one year the management has become quite active. There is continuous improvement in sales,margins, working capital cycle etc. And they are really expanding their business geographically.

In north region butterfly was an unknown brand but from last few months , We have come across alot of Butterfly brand hoardings outside prominent stores. Recently company managed to make online presence of butterfly brand specially through Indian eCommerce platforms Amazon and Flipkart.

Though competition is stiff and its not easy to gain Market from existing players, it all depends what strategy they are applying.

Advertisement has been mostly limited to hoardings outside stores only.

But yeah something is happening as far as geographical expansion is concerned.

Buy Butterfly appliances from Amazon

ICICI maintains BUY rating on the NCL Industries, Target 210

Buy NCL Industries for a target price of Rs 210

ICICI maintains BUY rating on the NCL Industries with a revised target price of Rs 210/share. They value the company on an SOTP basis. ICICI assigns EV/EBITDA multiple of 6.5x for the boards division on FY20E EBITDA while the cement business is valued at EV/tonne of US$50/t 

Read more >>>

About NCL Industries

NCL Industries Limited is engaged in manufacturing cement. The Company offers ordinary Portland cement (OPC), Portland Pozzolana cement (PPC), OPC 53 S cement, and Plain and laminated Cement Bonded Particle Boards. The Company's segments are Cement, Boards, Prefab structures, Hydel Power and Ready-Mix Concrete (RMC). The Company's cement manufacturing units are located at Simhapuri in the state of Telangana and Kondapalli in the state of Andhra Pradesh. Its boards plants are located at Simhapuri in the state of Telangana and Bhothanwali Village in the state of Himachal Pradesh. Its RMC plants are located at Hyderabad in the state of Telangana and Visakhapatnam in the read more >>>

Fundamental Analysis of NCL Industries Ltd  find here>>>

Latest Shareholding pattern of NCL Industries Limited

find here>>.

Earlier recommendation by stock brokers;

Research Reports

Jul 06, 2018:   Buy NCL Industries; target of Rs 210: ICICI Direct
Dec 13, 2017: Buy NCL Industries; target of Rs 305: ICICI Direct
Mar 15, 2017: Buy NCL Industries; target of Rs 265: Dolat Capital
Feb 28, 2012:  Buy NCL Industries; target Rs 90: Auctus Capital
Dec 03, 2007: Buy NCL Ind; target of Rs 120: IL&FS Investsmart

Read also; Suzlon Energy~ A Multibagger in making | 2018

Searches related to NCL Industries Stock;

NCL Industries Small cap, NCL Industries wiki, NCL Industries multibagger, NCL Industries research share price, NCL Industries Debt, Rain industries share price, Nagarjuna cement share price, NCL Ind share price target, Hidden Gems, Best Cement stocks, Micro cap cement stocks,

Chennai Petroleum: Buy This Multibagger Stock

Stock Idea; Chennai Petroleum Corporation Limited (CPCL)

CMP:    352.35 INR (As on 22nd Feb, 2017)                                     Target price : INR 510*

Chennai Petroleum.

Chennai Petroleum is one of the best stocks in refineries sector trading at a very low PE. This is a buy for a number of other reasons. Chennai Petroleum is a company that is into crude oil refining.

About the company

Chennai Petroleum Corporation Limited (CPCL) is an Indian state-owned oil and gas corporation headquartered in Chennai, India. Formed as a joint venture between Government of India, AMOCO and National Iranian Oil Company (NIOC), it was formerly known as Madras Refineries Limited (MRL). Chennai Petroleum is a public sector undertaking (PSU) and categorized as Miniratna-I.

Product portfolio;

The main products of the Chennai Petroleum are;

• LPG,
• High Speed Diesel,
• Motor Spirit,
• Bitumen,
• Lube Base Stocks,
• Superior Kerosene,
• Aviation Turbine Fuel,
• Naphtha,
• Paraffin Wax,
• Hexane,
• Petrochemical Feed Stocks and
• Fuel Oil.

Fundamentals;

Mar'17
(In Rs Cr)

Total Share Capital	1,149.00
Net Worth	4,441.10
Total Debt	4,497.72
Net Block	3,882.83
Investments	140.00
Total Assets	8,938.81

Valuation;

MARKET CAP (RS CR):    5,427.08

EPS (TTM):             60.81

P/E :                        5.99

INDUSTRY P/E:          9.56

BOOK VALUE (RS):   222.53

PRICE/BOOK:            1.64

DIV (%):                      210.00%

DIV YIELD.(%):         5.76%

FACE VALUE (RS):   10.00

Why Chennai Petroleum is a multibagger stock?

Chennai Petroleum is a multibagger stock which has risen from Rs. 51.75 in October, 2013 to Rs. 480 in October, 2017 i.e. it delivered more than 800% profit in just 4 years. Chennai Petroleum witnessed a fantastic years even in 2017-18 and the same trend is expected to continue.

The company has already reported an EPS of Rs 50 in the last three quarters of FY 2017-18.  An another Rs 15 to 18 EPS is expected in the fourth quarter, if it is then the twelve month trailing  (TTM) EPS will come around Rs 65 to 68. Hence at a current price of Rs 353 the stock of Chennai Petroleum is trading around P/E multiple of 5 only and at this price valuation is mouth watering. 

Chennai Petroleum is one of the best stocks in refineries sector trading at a very low PE. This is a buy for a number of other reasons. Chennai Petroleum is a company that is into crude oil refining. As long as crude oil prices remain subdued there is a complete scope for the stock price to rally. The company has also known for excellent dividend yield track record it recently declared a stupendous dividend of Rs 21 per share accounting for a tax free dividend yield of Rs. 5.75 % at current share price of Rs 353. 

Technical;

 On yearly chart the stock of Chennai petroleum is trading at Rs. 353 (as of 21th feb, 2018), it has support at Rs. 339 which is it’s 52 week low price too. On the top line it has made high of Rs. 480. Hence as a rule of thumb it is a buy at current price with a target of 475-480 (35% upside) with a stop loss of Rs. 335-340. Risk reward ratio is highly favorable in this stock.

Threats;

Chennai Petroleum is a company that is in crude oil refining business and therefore heavily depended on crude prices.

  

Other factors related to Chennai Petroleum

Mutual Funds Holding (As of 20^th Feb, 2018)

SCHEME	NO. OF SHARES
Aditya Birla Sun Life Bal. 95 Fund (G)	1,963,018
Aditya Birla Sun Life Pure Value Fund (G)	1,389,428
Aditya Birla Sun Life Small and Midcap Fund	681,710
Aditya Birla Sun Life Frontline Equity Fund	313,295

*Broker’s View;

KR Choksey in it's research report said that they expect Chennai Petroleum to fetch an EPS of INR 68.48 for FY18E, INR 107.05 for FY19E and INR 124.95 for FY20E. While at  CMP of INR 426, the stock is trading at 3.98x of its FY19E earnings and at 3.41x of its FY20E earnings. We recommend a BUY rating with a target price of INR 510. find detail report on chennai petro here here>>>