Aplab Ltd.

Background: The Defense and electronic sector is booming right now on the back of structural changes happening in the country. We have already seen multiple multibaggers from the sector and this shall continue to happen.

Company: Aplab has two major verticals: temporary power back-up, test and measurement. These verticals mainly serve the defense sector. India’s increasing Naval presence and increased spending in both Air and Sea defenses is translating into good orders for the company. Since the announcement of compulsory domestic tenders of sub-200cr, things appear to be turning around for smaller companies like APLAB. Its other vertical, Test and Measurement, which has the education and power sector as its primary customers was not doing business at all due to online education. But off late, after the resumption of the physical schools, this vertical is seeing surging demand and is now getting back to normal and moving forward it will start contributing to the overall growth. Defense is also a large procurer of test and measurement equipment. It also has a small Self-Service Kiosks vertical, which service mainly financial and banking institutions. The company was facing severe debt issue in the past but they have significantly pared their debt by selling some of the properties in the past year.  

Valuations: The company is available at around 0.3 times sales and the last quarter EPS was more than 3rs. Although the results could continue to be volatile, but the structural turnaround appears to be effective on the back of significantly improving business opportunities and debt reduction.  Promoters hold more than 59% stake and if we observe closely, then the promoters have significantly increased stake as the previous stake had close to 10% share of ZEE which is no more the promoters, hence, promoter consolidation has happened.The company operates on great margins and if the debt reduction continues as planned and the structural changes materialize, then this is a company to watch for.

Technicals: Stock is coming out of multi decade consolidation and has started making high highs and higher lows. Momentum on the monthly and quarterly charts is strong.

With the defense keeping the momentum high, and the issues plaguing the company, slowly getting addressed, the future appears to be bright. I would be watching this one closely.

God Bless !!!

Disclaimer: It is safe to assume that I have some vested interests in the stock. Also, the above stock story is my personal view in individual capacity and I am not a SEBI Registered Research Analyst. For rest, please look at the About page.

Thoughts on Wanbury

Key Points of Wanbury:

1. Major turnaround story with Edelweiss Asset reconstruction company holding major chunk. DEBT was a major concern
2. Had sold some brands to cipla which contributed to 12% to revenues but despite that the topline has infact grown by 40% – it tells us that business is solid. Strong cash flows also point to the underlying strength of business.
3. Debt was significantly reduced by over 80 cr by the above deal.
4. Management had told in the “EGM” last Jan, that they plan to substantially reduce the debt in next 12-18 months. Its been one year already: if any such plans start to materialize, then a major re-rating should happen.
5. Major sector tailwind.
   Hopefully patience would be suitably rewarded.

God Bless

Few facts about Aimco:

1. Ethical management
2. M.Cap / Sales of around 0.6 times which is way below than other having around 2-5 times.
3. Promoter holding already above 51% and recently bought additional 1.5% from open market.
4. EBITA increasing and concalls indicate further improvement.

God Bless !!!

The Resurrection – Sanjivani Paranteral !!!

I want to highlight the key negative here first:

1. Promoter integrity – that’s something to ponder very hard. But is there a reason to believe that something is turning here?

Turning Points:

1. Outstanding debt assigned to invent assets securitization and reconstruction.

2. Next Orbit venture Fund has entered the company – so with ARC and VC – the promoters would be strictly kept in check and can be provided with valuable guidance to take Sanjivani into next orbit.

3. The promoters have raised their stake from a partly 8% to now above 27% by a combination of open market purchase, warrants and open offer (https://www.bseindia.com/xml-data/corpfiling/AttachHis/0a7f2b1a-12bc-4d0c-9e3b-15b67e369216.pdf)

Given the developments here – to me personally it appears something positive is happening and I would take my chances. Also, there is a significant sector tailwind here. Powerful combination.

Disclaimer: It is safe to assume that I have some vested interests in the stock. Also, the above is strictly my personal view in individual capacity and I am not a SEBI Registered Research Analyst. For rest, please look at the About page.

RAMINFO – Results Update

Excellent results by RAMINFO continues. It appears the growth is sustainable. A H1 EPS of close to 6rs means the stock is trading at just around 5-6x is annualized EPS and it makes it one of the most undervalued Technology stocks. These kind of opportunities are sometimes really mouthwatering. Hopefully the story is now unfolding and market discovers it soon.

Update !!!

Thanks for all the concerns and well wishes. The world had been changing and coping with this change has been emotionally draining to say the least. Although life may never be same but it has to move on. I will try to be more active and will present my views as usual. I have also made my debut on Twitter and will be active there a lot more. If interested – can follow there.

Twitter -> https://twitter.com/investor_A_C_E

Results Update !!!

RAMINFO Ltd

Very good results. The company has already crossed last year’s profit and revenue (by more than 50%) and EPS is also almost double. It appears that the big order that the company had won around 2 years back is finally getting executed. “If” this is the case then the visibility for this growth is fairly big.

God Bless !!!

SPL Industries – Double in 3 months !!!

Congratulations to all the investors of SPL Industires who have more than doubled their investment in just 3 months.

God Bless !!!

Results Update !!!

Prima Plastics

Very good results by the company.

Wanbury

Good results by the company. Looks at an interesting juncture.

SPL Industries

Decent results.

Bharti Airtel

Once again very good results. Fundamentals continue to improve.

RAMINFO

very good results.

Cybertech

Good and stable set of numbers from cybertech continues.

God Bless !!!

Gujarat Themis Biosyn Ltd – 7 times in 4.6 yrs !!!

Congratulations to all the investors of Gujarat Themis for multiplying their investments by more than seven times.

God Bless !!!