Archidply- A Growth Story (Last Recommendation of 2015)

Manufacturing facilities have machineries from the world renowned manufacturers of equipment for this industry such as Dieffenbacher and Wemhoner from Germany, Steinemann, and Kundig from Switzerland.

Mr. Deen Dayal Daga, Chairman of Our Company has more than two decades of experience in managing wood panel industries.

Archidply products comply with quality standards of BIS and International standards of BS of UK, NEMA of USA and DIN of Germany. ISO 9001: 2000 of India for quality management systems. 

Archidply Industries Limited is the flagship company of the Archidply group. The Archidply Group has been associated with plywood manufacturing for more than 37 years. The Group has grown from a small saw mill in Assam to a modern state-of-the-art manufacturer of wood panel products and decorative surfacing products in three locations, Rudrapur, Chintamani and Assam, with a network of branches, distributors and dealers across India.

Archidply offers comprehensive engineered interior products which include. 

• Plywood’s - Marine Plywood, Fire Retardant Plywood, Shuttering Plywood, Densified Film    Faced Plywood, BWR & MR Plywood, Lamyply and Lamy board.
• Block Board and Flush Doors - BWR & MR grade
• Pre-Laminated Board - plain, veneered and pre laminated particle board both in interior and exterior grade.
• Decorative Laminates - range from 0.8mm to 1.5mm and post form laminates
• Decorative Veneers - Teak, natural exotic veneers, reconstituted veneers, engineering Veneers and dyed veneers.

Company has set up a large distribution network and operates through 20 marketing and representative offices and 70 distributors and stockiest. They have a network of 700 authorized dealers who in turn supply to more than 3000 sub dealers / retailers, giving a pan India presence for marketing of our products.

YEAR	Mar 2011	Mar 2012	Mar 2013	Mar 2014	Mar 2015
Sales Cr.	162.5	171.5	202	226.5	265
Net Profit Cr.	0.01	0.91	2.06	4.01	5.56

Archidply Industries Ltd., a Small Cap company (having a market cap of Rs. 131.95 Cr.) operating in Infrastructure sector.

Archidply Industries Ltd. key Products/Revenue Segments include Ply Wood & block Board which contributed Rs 125.20 Cr to Sales Value (47.32% of Total Sales), Decorative Laminates which contributed Rs 100.21 Cr to Sales Value (37.88% of Total Sales), Plywood Decorative which contributed Rs 27.14 Cr to Sales Value (10.26% of Total Sales), Pre-laminated Particle Board which contributed Rs 9.70 Cr to Sales Value (3.66% of Total Sales), Veener which contributed Rs 0.94 Cr to Sales Value (0.35% of Total Sales), Royalty Income which contributed Rs 0.83 Cr to Sales Value (0.31% of Total Sales), Others which contributed Rs 0.50 Cr to Sales Value (0.18% of Total Sales), for the year ending 31-Mar-2015.

For the quarter ended 30-Sep-2015, the company has reported a Standalone sales of Rs. 73.54 Cr., up 16.92% from last quarter Sales of Rs. 62.89 Cr. and up 11.10% from last year same quarter Sales of Rs. 66.19 Cr. Company has reported net profit after tax of Rs. 1.61 Cr. in latest quarter, Which is clearly indicating company is on growth path.

The company have potential to be the next Century Ply then after Green Ply in future.

Company is also in talk to setup their manufacturing unit in Myanmar - Link

Link Of the Company Website - Link

Stock listed in both exchanges and an industry with huge potential and with  well experienced promoters  may turn as  a growth story even from current level  Rs.60/-.

Wishing you Happy New Year to all Followers.

Fourth Dimension Solutions - IPO

 

Fourth Dimension Solutions Ltd (FDSL) is an information technology (IT) infrastructure, technical support services and operations outsourcing company having CMMI level 5 accreditation. It provides value to its customers by innovation, accomplishment, trust and long-term relationship through  unique service portfolio and expertise. FDSL provides range of information technology and consultancy services, including infrastructure services, end user IT support, IT asset life cycle, and integrated solutions. FDSL enables large and medium enterprises, Government organization and institutes to reduce their total cost of ownership using an onsite and on-call services, deliver strategic, personalized, full-service Technical Support services solutions with quality, value and commitment to total customer satisfaction. Its service assignments are mostly tender based contracts awarded to us by Local/State/Central Government bodies. 

Company provides services in following sectors.
1. Project Consultancy.
2. IT- Products & Services.
3. Printing Solutions.
4. Document Management.

Company had successfully completed the Projects in Government, Corporate & Defense sectors.

It intends to use issue proceeds for working capital requirements.

On performance front, the company has posted average EPS of Rs. 74.15 and RoNW at 77.21% for last three fiscals. The company's consolidated profit for the year ended March 2015 stood at Rs. 13 crore against Rs 0.4 crore in previous year. Revenue during the same period increased significantly to Rs. 652.5 crore from rs. 136.6 crore.

For first six months of the current fiscal, it has earned net profit of Rs. 5.88 crore on a turnover of Rs. 320.83 crore. If we annualize these earnings and attribute to the post IPO equity then EPS will stand around Rs. 10.80 and thus asking price is at around 3 P/E against peers P/E ranging from 8 to 67.

IPO Details:

1.      Issue Type: Fixed Price Issue IPO

2.     Issue Size: 2,892,000 Equity Shares of Rs. 10

3.     Issue Size: Rs. 8.68 Crore

4.     Face Value: Rs. 10 Per Equity Share

5.     Issue Price: Rs. 30 Per Equity Share

6.     Market Lot: 4000 Shares

7.     Minimum Order Quantity: 4000 Shares

8.     Listing At: NSE SME

IPO Opening Date:

1.      Issue Opening date is: 30 Dec, 2015.

2.     Issue Closing Date is: 7 Jan, 2015.

Considering reasonable pricing of the IPO, investors may consider long term investment, as most of SME IPOs have given some rewards post listings in the process.

BSE's New Price Cap Rule

BSE has introduced additional price band to be applicable weekly, monthly, quarterly and yearly for stocks. At present, stocks have daily price bands which restrict price movement, either up or down, beyond a certain limit.

Currently, stocks have a daily price band of 20%, 10%, 5% and 2%. Additionally stocks will now have to follow price bands on a weekly, monthly, quarterly and yearly basis. Stocks within the 20% band will have to adhere to a 60% up or down price band, which means that the price of the stock can rise or fall by only 60% in a week. Similarly, in a month, the stock cannot increase or decrease by 100%, in a quarter not more than 200% and not more than 400% on a yearly basis.

These measures have been taken to counter volatility in the markets, exchange officials said.

For stocks in the 10% daily band, the weekly band has been fixed at 30%; monthly band at 60%. On a quarterly basis the stock cannot move beyond 100% and not beyond 200% in a year. Stocks in the 5% daily band can increase or decrease by 100% in a year and 60% in a quarter. Those with a 2% daily band can rise or fall by 50% each year and 30% per quarter.

You can mail at bse.surv@bseindia.com by rising voice against this price restriction.

To avoid above scenario investor can execute trades on NSE for the stocks listed on BSE as well as NSE.

http://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20150806-24

Pioneer Embroideries Ltd. - A complete turn-around story.

Pioneer Embroideries is in the business of manufacturing embroidered fabrics, laces and dope dyed yarn and its brand “Hakoba” is still the leader in embroidered clothing category. In the ‘Laces’ segment company is the second largest producer in the world. 

Due to leveraged and untimely expansion ( mainly in retail segment) and unexpected downturn in overseas markets due to recession, company went into big trouble. From a net profit of Rs.15 Cr reported in 2007 , its bottom line crashed to a loss of Rs.33 Cr in 2013. Sensing the big trouble, management initiated efforts to revive the company .Edelweiss ARC Limited ( EARC) , an asset reconstruction company took over the debt of Pioneer with EXIM Bank. I believe, Compared with banks, Private asset management companies are more flexible and time and formalities needed to deal with them is less compared with PSU banks. Now EARC agreed to accept re-payment of interest outstanding on this loan in the  form of equity. As part of this agreement company have allotted  Eight Lakhs Fifty Thousand shares to EARC at a price of Rs.35 each.

I don’t think any private ARC will convert  even a part of their assignment to equity if they feel the underlying business is not viable.

Right now Pioneer P.E is 4.7 as compared to industry P.E 33.8, this shows the stock is available at fare value & Textile sector is in boom for now.

Company’s retail venture – Hakoba Lifestyle-  is running through its subsidiary and it also selling products like ready to stitch salwar kameez and dupatta sets, sarees etc through e-commerce sites like Flipkart. Amid its not so good financial situation and working capital crunch , for the last five years pioneer reported substantial and steady improvement in its top line ( See below Table)  .

This clearly indicates, demand of product is  not the major issue but mainly the debt related issues eating its bottom line. Now promoters are trying their level best to find a solution for debt related issues  and considering the recent developments, I believe the possibility for a success in this effort is quite high. If the success of of their efforts continue in this same tempo, Pioneer may emerge as a dark horse in the years to come .

Recently on 19th Sept 2015, company has done one time dues settlement with SBI.

The performance of the company in last two quarters have been positive, due to which the stock has moved from Rs.30 to Rs. 81 on fundamental basis only. I believe the Q3 & Q4 results will be fantastic due to festive seasons & company is on a verge of revival.

Stock listed in both exchanges and currently trading around Rs. 81.                                      
This is for Mid - Long term holding for handsome returns.

Suggested this stock around Rs. 38 to my close group.

Link to Company Website HERE.

Morepen Laboratories Ltd. - A turn-around story.

Morepen Laboratories Ltd., incorporated in the year 1984, is a Mid Cap company (having a market cap of Rs 1698.09 Cr.) operating in Pharmaceuticals and health care sector.

For the quarter ended 30-Sep-2015, the company has reported a Standalone sales of Rs.108.92 Cr., up 9.72% from last quarter Sales of Rs. 99.28 Cr. and up 24.62% from last year same quarter Sales of Rs. 87.40 Cr. Company has reported net profit after tax of Rs. 3.22 Cr. in latest quarter.

After making loss several years, company is been able to achieve profit since Mar' 15, last two quarter have been good for company in terms of Sales & Net profit (5.73 Cr.).
If the results of next quarter are positive, the stock is ready for a boom. 
This is for Mid - Long term holding for handsome returns.

The stock is listed in BSE & NSE & currently trading at Rs.37.