Stock Market Research

When the economy starts doing well, its not only the FMCG companies that will do well but also many other category companies. New and businesss news companies will also do well. This was my rationale to pick up Network 18 and you can see the result for yourself. Market cap close to 5000 crores and expecting to be the leader in buisiness.

Likely to cross 100 in two years. Cheers!

When the economy starts doing well, its not only the FMCG companies that will do well but also many other category companies. New and businesss news companies will also do well. This was my rationale to pick up Network 18 and you can see the result...

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1) Tata Motors UK based subsidiary Jaguar and Land Rover global sales in November increased 14% to 29,893 units, which gives a indication of strong rise in sales and income for Tata Motors after the end of the current quarter.

2) The Company is also setting up a new engine plant in Wolvrehampton, UK.

3) JLR had witnessed increasing sales from emerging markets, which contributed to a 32 percent increase in global retail sales to 324,184 vehicles in the eleven months to November 30,2012.

1) Tata Motors UK based subsidiary Jaguar and Land Rover global sales in November increased 14% to 29,893 units, which gives a indication of strong rise in sales and income for Tata Motors after the end of the current quarter. 2) The Company is a...

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Industry Snapshot

The Indian dairy sector has witnessed a shift from un-organized sector to organized sector in past few years. This has led to a healthy growth and the milk federation expects the growth to be upwards of 7% per annum. The growing population and increasing health sensitivity/education in the country will drive the growth in milk based products. Also, with growing disposable income, the consumption of dairy items is set to increase.

Company Snapshot

Kwality Dairy was incorporated a erstwhile Kwality Ice Cream India and is most popularly known as an ice-cream brand. However, it is into manufacturing marketing and sale of variety of dairy products and enjoys a healthy market share. The company caters to regular/daily use dairy items as well as lifestyle products. It has recently started investing more in marketing and promotional activities to gain more brand recognition and has introduced new products recently. The company is a supplier for larger FMCG companies like HUL, Britannia, Parle etc. These companies are expanding their product line which uses dairy product input. This will lead to higher revenues and more commitment for Kwality Dairy.

Financial Performance

The company has been under pressure since its debt has continuously risen in last few years and it reflects in the sharp correction in its stock price. However, the operation efficiency has been good all along and is improving now going forward. The revenue has grown at a 5 year CAGR of 48%, while net profit has grown at 81.5%. The debt taken up by the company is well utilised in expanding the company s capacity to 1.7 million LPD. It is not in the league of Amul or Nestle but is a good company to benefit from the dairy sector shifting to organized market.

The quarterly performance suggests the forward projection of EPS in FY13 can be around 6.01; which results in a forward P/E of 5.78. The current P/E is at 6.02 which translate in PE growth ratio (PEG) of 0.08.

Outlook

It is an evergreen industry which does not have any seasonal effect or business cycles. Also, the replacement of these products is not possible. Hence the demand will always be there. With the industry on a healthy growth trajectory and company s efforts to build brand recognition and product portfolio, the outlook is good for the company from a business perspective. The financial management has caused some woes in the recent past but that may not be a huge threat for long term investors as the company is posting good numbers, quarter after quarter. The stock has corrected severely and is trading near its 3 year low. This may be a good time to pick up some holding in this company.

Given the current scenario and trajectory, the stock should be trading between Rs.120-150 in FY14. All we need to look out for is the financial management and any chance of default. Besides that, it is much cheaper than its peers Nestle, GSK etc. and caters to a slightly different market. Once the valuations are richer or equivalent to its larger peers, exit from this scrip.

Industry Snapshot The Indian dairy sector has witnessed a shift from un-organized sector to organized sector in past few years. This has led to a healthy growth and the milk federation expects the growth to be upwards of 7% per annum. The growing...

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NPA of all Public sector banks are on the rise. Unless it become transparent, what is happening is cooking of accounts. You have a better cheff, you can sell the product. It reminds me of a story.

Dollar was an unemployed youth. He came to a small town and found that the town was full of monkeys. Everyone treated it as a menace. He saw an opportunity. He started buying monkeys at 100/-. Collected a thousand in one day. He increased the rates. collected 10000 the next week. Monkeys and the menace reduced. It created a small community specialised in money trapping. (The common investor).He now raised the rates to 500 and almost all the monkeys disappeared. He further raised the rates to 5000/-. There was no supply. So he placed an order for 1,000,000 monkeys and left for a vaccation. His assistant smelt an opportunity. He told the folks he would supply monkeys at 2500 and everyone wanted his pie. Cool 100% profit in no time. All the stock disappeared in one hour. The assistant joined the boss in Hawai and lived happily ever after. Folks kept waiting for the stranger. He never returned. Did Dollar do anything wrong? Was it a scam.. Monkey Scam.

That is stock market. Identify the monkey on time lest it rides on you. Don t be greedy. Follow my stocks. You may not lose much and may hit jackpot at times. Do your research right and act on time. Buy rumour; sell news. We are generally always late.

Regard Aneed

NPA of all Public sector banks are on the rise. Unless it become transparent, what is happening is cooking of accounts. You have a better cheff, you can sell the product. It reminds me of a story. Dollar was an unemployed youth. He came to a sma...

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With large caps and midcaps rallied in last few days, its likely small caps catch up soon.

Smartlink Networks: Smartlink networks has been moving in a small range of 45-52 since long. Has not managed to cross 55 since July’ 11. Once it manages to close above 55, it can head upto 63-65 levels. Has good support near 46-47 levels.

With large caps and midcaps rallied in last few days, its likely small caps catch up soon. Smartlink Networks: Smartlink networks has been moving in a small range of 45-52 since long. Has not managed to cross 55 since July’ 11. Once it ma...

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