Kopran Ltd – A risky multibagger prospect

Kopran Ltd, belongs to Parijat group of companies which has listed peers like Oricon and excel glasses. It has had its share of problems and has been through severe working capital crunch. Five years back, Parijit group appointed Clearware capital partners to revive their group companies. This, along with helpful market conditions have started showing signs of improvement.

Recently, Kopran launched Sparkle Toothpaste and is doing well and it has marked the company’s entry into FMCG. Also, in the last quarter the company promoters hiked their stake in the company by 5%. This shows confidence of the promoters in the company’s future. Apart from this company is also into Finished Dosage forms and Active Pharmaceutical Ingredients. Last few quarters have been really good for the company and if the company keeps walking down this path, it can slowly but surely climb back to the path of tremendous growth. The growth of last few quarters is showing it:

Sep ’13

Jun ’13

Mar ’13

Dec ’12

Sep ’12

Net Sales/Income from operations

78.54

58.10

74.55

56.33

62.90

Other Operating Income

2.37

1.60

2.19

1.42

1.83

Total Income From Operations

80.91

59.70

76.74

57.75

64.73

EXPENDITURE

Consumption of Raw Materials

49.68

38.69

45.68

38.13

39.60

Purchase of Traded Goods

0.82

0.60

6.43

Increase/Decrease in Stocks

-3.71

-2.56

3.00

-3.09

0.45

Power & Fuel

Employees Cost

6.15

5.24

5.38

4.52

Depreciation

3.08

3.03

3.05

3.05

3.02

Excise Duty

Admin. And Selling Expenses

R & D Expenses

Provisions And Contingencies

Exp. Capitalised

Other Expenses

13.50

9.90

11.40

10.36

10.65

P/L Before Other Inc. , Int., Excpt. Items & Tax

11.39

4.80

7.18

3.92

6.49

Other Income

-2.61

1.06

0.39

1.18

-0.45

P/L Before Int., Excpt. Items & Tax

8.78

5.86

7.57

5.10

6.04

Interest

3.75

3.07

3.51

2.84

2.81

P/L Before Exceptional Items & Tax

5.03

2.79

4.06

2.26

3.23

Exceptional Items

P/L Before Tax

5.03

2.79

4.06

2.26

3.23

Tax

P/L After Tax from Ordinary Activities

5.03

2.79

4.06

2.26

3.23

Prior Year Adjustments

Extra Ordinary Items

Net Profit/(Loss) For the Period

5.03

2.79

4.06

2.26

3.23

Equity Share Capital

39.05

39.05

39.05

39.05

39.05

Reserves Excluding Revaluation Reserves

Equity Dividend Rate (%)

EPS Before Extra Ordinary

Basic EPS

1.29

0.71

1.04

0.58

0.83

Diluted EPS

1.29

0.71

1.04

0.58

0.83

EPS After Extra Ordinary

Basic EPS

1.29

0.71

1.04

0.58

0.83

Diluted EPS

1.29

0.71

1.04

0.58

0.83

The stock has recently broken past around three years of consolidation on very strong volumes. There is a huge upmove expected now. Currently the stock is trading at a PE of just 7 and  market cap of just 100 cr. Earnings growth along with PE rerating can take this stock to the next level.

People with a pinch of risk taking capabilities can buy this stock to give a beta and fillip to their portfolio. I advocate a buy in this stock with SL of 19 (on closing basis) and targets of 30, 33,46 and 73 in the coming months. CMP: 27rs

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4 Responses to Kopran Ltd – A risky multibagger prospect

  1. pp says:

    Ace good to know your back in India/ Mumbai. Welcome home 🙂 Im pretty confident about that particular stock that you are going to interact with the company. Ive been researching on it on a while now and sure does look promising. What date are you going to meet them. ( can i come with lol 😛 i could fly to Hyderabad in case its not in Bombay )
    I am going to put up a research report on my blog to, but wont but the name on here in respect to you. Also could please have the facebook link as well.

    Thanks and cheers!
    ( oh and delete the first line if you want)

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