Aro Granite – A Cheap, But High Value Growth Stock

There is difference between analyzing a stock and researching a stock. This stock story is the perfect case study for it. Nowadays, where anything and everything to do with granites/ceramics/tiles is going out of roof, its very difficult to get cheap but high quality and high growth companies. If the research is not proper its easier to get into the trap of Madhavs and Stylamsz of the world.

Background: ARO Granite Industries started operations as a 100% Export Oriented Unit in 1991 for processing Polished / Flamed/modular Granite Tiles & Slabs. It is engaged in manufacturing of modular granite tiles and granite random slabs. It is a star export house; exporting to around 30 countries like North and South America, Europe (UK, Germany, the Netherlands, Italy), Africa, Greece, Portugal , Iran and the Far East. Their plants are strategically located and therefore, it gets direct access to quarries in South India, which are known for the finest and widest range of appealing granites. The company has installed the most sophisticated and environment-friendly granite processing machinery imported from Italy.

Past Great Future Even Better: Last year company completed yet another expansion plan (they have to keep expanding because due to the high demand of their products, they are almost always running full capacity – it’s the best part), complete effect of which will be seen this year. As per my interaction with the management the company would become debt free this year(ex-working capital debt). This would be strong bottom-line booster. This quarter promoters have freed all their shares from the pledge too. Revenues have almost doubled in last four years and bottom-line has more than doubled. The management is very upbeat about the growth prospects moving forward and there’s a reason to it. According to them, if they could double both topline and bottomline, inspite of recessionary trends in the world, now that world economy, and especially domestic economy, is picking up, “bettering” what they have achieved so far should be a piece of cake. Most of their growth has come, courtesy export markets but they could also start focusing on domestic market if they see smart cities project actually taking off. This could take the growth to another level.

Why To Buy: The Company has been very consistent with dividends and has also been rewarding shareholder with regular bonuses and is available at extremely compelling valuations of less than 4.2 times trailing PE. The company would keep bettering on the growth moving forward and would be a clear beneficiary of word economy picking up and smart cities project could be the icing on cake. The company would become debt free this year. With a lot of its raw materials being imported and most of the products exported, the company is naturally hedged against currency fluctuations. A point to note is that No other company in this sector has this level of natural hedge. It’s great because it saves finance costs. The company’s almost doubling its sales every four years and should better this moving forward. The company that’s consistently growing for last 10 yrs, regularly rewarding shareholders with bonus shares and dividends and is in one of the hottest sectors of the moment cannot keep on trading at these kinds of ridiculous valuations. The management quality is impeccable here. This is one stock that has not just survived but thrived in harsh business environment and with improving business environment, the company can graduate to a new level altogether.

Super Compelling Valuations: With the current market cap of just 100cr and cash equivalents of more than 15cr + last near net profit of 21 cr + this quarter’s profit of more than 5cr, we are getting a company in 100cr with around 41cr of cash, This is a wonderful cash bargain. On top of it its being trading at a dirt cheap PE of just 4.2. Even doubling from these levels the stock would still be just 8.5 PE. Given that its peers are trading at anything between 20-80 PE and given the strong demand of its products, strong earning consistency and visibility the stock, backed by an ethical management should get strongly re-rated in near future. Even something like Asian granito (whose net profits have actually reduced by 30% in last five years instead of growing) is trading at 15 PE and orient bell (whose profits have actually been on a downtrend in last 4-5 yrs) is trading at 86 PE – think about it.

Technicals: The stock has given a very strong breakout above 60 after seven long years and these stocks do not just double and stop. They go way higher. The stock is so strong that even in the carnage of last three days the stock is within the kissing distance of its all time highs. This means something.

Note: The stock story is a result of my research and management interaction. Please think about it, research about it and if convinced, only then invest. And once invested, please stay invested. Take volatility in its stride and look at value not price. God Bless.


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347 Responses to Aro Granite – A Cheap, But High Value Growth Stock

  1. Ram says:

    This is what I call it as guts.., even in this bloodbath you are optimistic .. Thanks much Ace

    • 3-4% decline is not blood bath brother. Bloodbath was in oct 2008. I do not mind 10-15% correction in bull markets.

      • Ram says:

        LoL .. If you look in to small cap it’s around 7-8%…. Any ways this is expected.. I was part of 2008 story and I agree with you Ace…

      • Chirag says:

        hey ace, finally feel good oppurtunity to buy Waterbase on these dips. read lot of articles and journals about how demand for artificially cultured sea food (as more scope of controlling quality) is on the rise in Asian nations since its part of appetite. so feed food demand will also go up.

        so just want to know how would the indian market rerate this industry pe going forward. i mean, there is no benchmark as such. any thoughts ?

        • who knows. Let markets tell us. Normally high growth companies with strong earnings visibility get around 25-35 PE , but it could also go higher. But this is all guess work, let the markets tell us.

  2. Naveen says:

    Ace, what is your valuable opinion about “Natural Capsules”?

  3. A very naive question .Why is the cash flow from operating negative and cash flow from financing positive for this company ?

    • they could be capitalizing on financing activities. By the way cash flows are not always positive for manufacturing companies.

      • Kiran says:

        Actually what do you you mean by this statement ?

      • Mehul says:

        Hello ace, such reply from you is not expected, we are reading and studying all such blogs as that of your coz we people dont understand certain concepts of finance, economics or micros. Can we conclude that gap of cash from operating activities is being filled up by financing activities?

        • Hello Mehul, I expect some effort from the readers also. Why did you feel bad if i asked someone to google something. I had already given first level of answer. You give people food they eat and finish it and they are back to square one, you teach them farming, they never have to sleep hungry. Its up to investor’s to decide whether they want just borrowed conviction or want to develop their own.

      • Mehul says:

        Well said, Partially agreed ….🙂

        • thanks for taking it in the right spirit. Anyways, just quickly, positive cash flow from finanace could come by receiving cash from issuing stock and receiving cash from issuing bonds. negative cash flow from finance could be because of activities like using cash to repurchase previously issued stock, pay debt and/or to pay interest on debt and to pay dividends to shareholders (which is obviously good). So in a nutshell, even negative cash flow
          from financing activities is also not entire bad, one should understand the nature. God bless

  4. syantan says:

    aceji-namo sir r looking energysector specially oil&gas to self dependent at this juncture which stock is buy? down stream or upstream? also onshore or offshore co:can u suggests 2to 3 stock which can provide multibagger return.

  5. sam says:

    Hi Ace…Looks like a good bet but hardly any volume!! Its sure to hit UC tomorrow morning….your views??

    • dont just look at last 2-3 days volume. volume is comfortable. see i dont know if it will hit UC because our retail investors are very strange. they will look at nifty and their enthusiasm will die down. not many would be smart enough to buy such a wonderful and safe stock because they would feel scared. buy when others are selling is the most difficult thing to do and people who do that make most money. The stock is insulated to most of the factors and is available at throw away price. AS i wrote even if it doubles from here it is just 8.5 PE, even if its 8-9 PE, its a shame because this stock deserves much better PE.

      • sam says:

        i realize you play a lot on conviction and fundamentals….two pillars for long term bets..would love to see what happens if i place an order of 10K shares tomorrow…
        Thanks Ace

        • nothing will happen. even if its UC then i will try on monday. even with 100% appreciation it would be still 8.5 PE. That again is so cheap that I will buy even at those valuations, because see, if the stock keeps on growing, the stock is bound to get re-rated. I do not say it should get 30PE right away, but even 8-9 PE is insulting for this stock. even after three UC this stock would just 6.5 PE🙂 less than 7…how ridiculous is that. Low PE is not the criteria, dont take me wrong ok, but the point is that we are getting a company with 40cr cash, which is doubling every 4 yrs (even during recession), which means that the growth is real and management is smart, then it “has to” get re-rated. look what happened to waterbase…it kept on growing silently and one fine day when somebody discovered it, it zoomed. God bless.

  6. srinivas says:

    hi ACE, your view on indraprastha medical corporation for long term?

  7. Raj Gupta says:

    Dear Brother,
    Do you think about ur older post to give call again to buy ?
    For example;
    Like Aimco or Waterbase etc. come down from peak n you think again one can go with that…

  8. anjum vohra says:

    Thanks Ace, for Aro granite,want to buy 1000 shares,hope I get them tommorow, today added some more Freshtrop @ 59/=.

  9. syantan says:

    aceji- v2r released pledge share currently.

  10. mayur says:

    Hi ACE, May I ask you how long you have been into the market? I guess more than 12+ years? I simple like yours analysis and thought process behind every stock story. I just started following you this month only and became great fan of you..learning so many things from you. however, I missed past stock stories at good valuations. Never mind and thanks for putting up new idea.

  11. srinivas says:

    ACE, is this the right time to buy PRAKASh IND.?

  12. krishna says:

    Hi Ace,
    What about elegant granites, which is cheaper than aro granite and it is having more than 20 CR equity investments and a good company, dividend , less pe, promoter holding and is available at less than 50. In which way aro is better than elegant.

    • i dont like a stock because it is cheap, i like if its cheap and it is growing. There’s no growth shown by elegant. What’s the point of buying..elegant deserves these valuations only. Value without growth is value trap

      • krishna says:

        Small clarification bottom line is doubled for elegant in the last 4 yeras to its current EPS 10. Can you tell us one fundamental either PE,EPS,PROMOTER HOLDING, YoY growth one parameter where aro is better than Elegant marbles?. one more doubt When aro is operating with full capcacity utilization, why operating income is negative then..pls clarify

  13. What do you mean by distributing?

    • yup, i know the rules. There’s nothing violating rules here. Not sure the context of previous comment.

    • i know. Thanks. God Bless

      • Ace investor
        I appreciate you posting your thoughts on the stock. But your statements such as “buy first thing on Friday, even at upper circuit it is cheap” – betrays a sense of urgency on your side to get the stock to stock up. This makes me slightly suspicious that helping the investor is not the most important criteria. I will stay away from your picks solely because of this reason.

        • Prashant says:

          Dear adifferentshadeofblack,
          please stay away so that we can buy these stocks at better bargain .

        • ok,you can stay away, infact i do not ask people to buy. the reason i say that is because if you see previously, the stock used to open at UC and stay there for next couple of days and people would be unable to buy. Secondly, i said I normally buy at the opening.

  14. sri says:

    Hi aceji,

    I was wondering how do you interact with the xompany management, is it possible for a small time investors like us to interact with the company representative? If yes what is the approach. Please enlighten.

  15. ram says:

    Hi ace, could you please give your opinion on avanti, mastek and mold-tek pack.

  16. J says:

    Ace Bhai,
    Your views on Lloyd Electric?

  17. Dinesh says:

    If they try to reduce there debt then I will buy at higher rate not at this point.
    Debt equity ratio is not attractive.

  18. Amit Gupta says:

    but the debt is actually 95 Cr..How can they become debt free in this FY

  19. Rishant says:

    There could be reasons unknown that this stock didn’t participate in bull run till now. If most of the companies have moved up then why not this one?

    See Orient Bell, the company price is stuck for long time. Can’t compare 1-1 as Orient is in specific area of tiles like digital tiles and in niche sector whereas Aro is more on volume and in generic sector.

    When orient Bell gives 1 goos result which will be turnaround it will be a non stoppable horse.

    Not sure of Aro.. they make ordinary generic marble granite etc..

    • if and buts are unknown variables in markets and bring along uncertainty and therefore, eats valuations. What markets pays for is good consistent growth and visibility. Not every stock gets discovered at day1 in bull markets. Infact, at every stage the market keeps discovering these gems. Brands do command premium, but so does growth. Any company, no matter how niche, that does not grow cannot keep commanding premium valuations and any company that keeps on growing would one day get re-rated. Thats the beauty of markets.

  20. First of all , dear friend , you cannot compare asian granito/orient ceramics and aro granite. These are 2 very very very different businesses. Aro is into the export business and Asian granito is into the retailing of internal home furnishings. Historically Aro granite has traded at low valuations. I know this stock from 2004 levels. they are a good dividend play. The stocks Beta is very low.

    This is the same way that you tried to compare cupid rubbers with a pharma stock. You cannot just compare apples and cauliflowers.

    • actually cupid is a pharma stock, yes i agree Aro granite not strictly comparable, with Asian, but the sector is considered same and more importantly asian granito and orient are not growing. Thats the point i was trying to emphasize on. Here the company is growing. Markets pays for consistent growth.

  21. RAVI says:

    Hi Ace
    On analysis the financial statements of Aro granite , I could see the following points

    Total debt increased from 95 crores in 2013 to 110 crores in 2014
    But there is no increase in Machinery values , In fact it decreaed from 124 crores to 118 crores ( Gross block)
    Seems that they are borrowing money for working capital requirements , because the cash flow is not good

    Do we need to consider all these points also

    Kindly advice

  22. Karthi says:

    Hello Ace,
    Why does the debt increase every year, though it is not long term debts ?

  23. Praveen says:

    Hi Ace,

    Whats your view on Fedders llyod? Thanks!

  24. krish says:

    Hi, what are views on R Systems International? I feel it is a good company. The pedigree of management is good too.

  25. sam says:

    Hi Ace..can parabolic drugs be bought for long term?

  26. sam says:

    Also planning to get into veer energy..would love to have your views!!

  27. RightStock says:

    Dear Ace,Can you please provide your valuable view on IFB Agro. This company with near zero debt, and no pledged share trades at 5 PE. Their Marine business could be compared to the peers like Avati Feeds, Waterbase. Still it trades at a very cheap valuation.

  28. Raj Gupta says:

    Ace sir,
    Can u throw some light.on Dion Globel which was known earlier Fortis Finance. I have its share since 2008..n now a days it is flying..

  29. Shine says:

    No complaints from people that they did’nt get the share, even Ace posted after mkt Hours … Now i wonder how many of his followers actually bought the share ?

    • 🙂 people should only buy if they are convinced.

    • Praveen says:

      Purchased @ 78 this morning. I am a regular follower of this blog. Even i prefer that idea is posted during market hours. But it totally depends on the blow owner. I think the number of comments for Freshtrop Fruits which was posted during market hours prove that there are more ppl who like it during market hours. Anyways I am happy as long as i am able to buy these stocks at good valuation. few % up and down hardly matter for long term. What matters is the conviction. My vote still goes to during market hour posting..

      • Shine says:

        Ur statement “”few % up and down hardly matter for long term”” is not justifying ur stand to post Ace during mkt hours….

  30. MyInsignia says:

    Hi Ace, Do you like Shetron from the packaging industries. It looks good but has huge debt to equity ratio.

  31. J Gopal says:

    i wonder where from fresh capital comes every fortnight to invest in new stock idea. When there is a strong conviction people normally invest fully and left with no money to invest in new stock idea. That’s why people are keep on asking you about your previous ideas to find out whether IMHO suggest to switch from “x” to “y”…etc…

    • maybe not everyone invests in every idea, so they must be keeping some cash. Its not that there are fixed set of readers right, so new people come and ask. There’s no problem till people are buying after convincing themselves.

  32. Geetha says:

    Can i buy sequent scientific , mayur uniquoter , liberty shoes at cmp?
    Which one will be the best at present price? Convinced will all above stock but cannot buy all.
    Kindly shed light how to know that stock we purchase is not overpriced/ right price

    • liberty i like a lot. mayur, at these valuations is a defensive bet. Sequent at this price is average, i would rather look at a cupid.

      • HG says:

        hi ace, could you elaborate your view on mayur? Do you think it can compund at 20-25% over the next 3 years?? While I hold it from ~80 levels, it seems to have plateaued a bit and I’m debating between holding a good business for a long time or shifting to faster appreciating ideas. Your views would be nice to know.

        • see, i think it can compound at 20-25% CAGR, but does that mean even share price would compound at that pace. Hard to say. Its been an “excellent” story so far and may continue to be a stable compounder. I beleive its also been recommended by good brokerage houses now and that means its well research and discovered story. Normally, one would switch from winner only and only if there’s a “much” better opportunity presenting itself that could compounder faster. If you want to play it safe stick to mayur, but if you have a “much” better opportunity already identified, sleep over it for some time and then again question yourself and again only if convinced, swap. As everybody knows i keep evaluating my options. Faster compounding is my motto, although that does not mean churning my core portfolio every now and then. So if you convinced that there’s a much better story available, then you can swap.

  33. Rakesh says:

    Your view on Lloyd Electric, Fluidomat, IFGL Refractory.

  34. Rakesh says:

    Your view on Lloyd Electric, Fluidomat, IFGL Refractory, TCI

  35. Rakesh says:

    Hi Ace. What is your view on Lloyd Electric, Fluidomat, IFGL Refractory, TCI

  36. Rakesh says:

    Some mistake. Sorry for posting multiple times. Fluidomat, IFGL, TCI opinions missing. Please advice

  37. sunny multani says:

    Hi ace.
    Investors who r already making loses in cupid&freshtrop why would they buy your new idea aro granite even if they have money also.

    • I never ask anyone to buy anything.freshtrop recommended at 52, cupid at 21. Do you know what are the prices now? and here people buy only once they are convinced. This blog is to motivate investors to research. Investors do not worry about weekly volatility. God Bless you.

    • Prashant says:

      Dear Sunny,
      please do not try to represent the unknown . Wondering who authorized you talk on behalf of blog followers. Evrryone is here to earn money and grown up enough to take care of self interest .


      • Prashant, I am seeing today a flurry of haters, not sure why? Today, it didnt even close at UC, so not sure why people are hating me🙂 should see my mail inbox, but i guess that i have started taking all this in stride. Quite a few people abuse me everyday, but i hope others do not mis-understand me. God bless everyone.

      • Prashant says:

        Dear aceinvestortraderji,
        I follow one rule, when peopels oppose you, abuse you, its guaranteed you are on right track . Unfortunately due to recent run in market, traders thinking that stocks can multiply in weeks, and it did happened in your previous stocks . But that can not be the case for all stocks .

        But then market is so brutal it teaches lessons in its own way, market is so kind its gives opportunities to patient .
        Please ignore such elements, you can find them on all blogs.

        Thanks & Regards,

  38. a.p. says:

    Whats your view on aimco promoters’ trading like activity as per last two SAST in BSE?

  39. ravi multani says:

    hello ace
    r u going to agm of cupid tommorrow???…and on which date WHO will renew thier order in october..

    • oh man how much i wish i was going to AGMs of companies, but i am again travelling for next few weeks across timezones. The WHO will start the process in Oct, so normally, it take a 4-8 weeks to know the order size.

  40. neelbasura says:

    Hi Ace, I missed Waterbase before.. In your opinion is the CMP good for fresh entry in waterbase for next 2 years?

  41. Raj Gupta says:

    Ace sir,I appreciate the way you reply of every question with a lot of patience..
    Place ur views on Eon Electric…

  42. Some of your suspicious statements are
    “nothing will happen. even if its UC then i will try on monday. even with 100% appreciation it would be still 8.5 PE. That again is so cheap that I will buy even at those valuations, because see, if the stock keeps on growing, the stock is bound to get re-rated”

    • 🙂 how is that suspicious? You are looking at price and i am looking at value and thats a big difference. You clearly have some preconceived notions about me and you are fixated at that. I am fine with that brother. I am choosing to publish your comments because i want to be clear from my side and let readers take their own decision. as RJ says, if the girl is beautiful, suitors would come. God bless

  43. prafulla says:

    V2 Retail : This extremely attractive valuestock about 2 weeks back reached a high of Rs38 and there were buyers waiting to buy for thousands of shares atrs.38on that day. Now today it is available at Rs31 and it is avalilable in thousands but now buyers. Nothing materially has changed in the Company working and CEO has indicated likly EPS or RS 9 for the current year. Still no buyers at this high discount of 15% on High of RS38 reached just a few days back. Now At RS 31 now this is a more screaming Valuebuy of huge potential.. You are an expert analyst and can you please guide as I wish to buy this further.

    • Please use your own decision on buying. I am very bullish on it. Two things 1. The stock did not end in lower circuit, it recovered marginally, so all those stocks were bought. 2. I myself bought today – this is my disclosure , but that does not mean you or anyone else should also buy. Take your own decision

    • Satpal Singh says:

      Expert analysis ? , are you saying about aceinvestortrader blogger itself ?

      Ask some questions related with balance sheet , then you can see the true colour of this expert .

  44. DIP says:

    Ace, I have bought recently Ajanta Pharma, Mayur Uniquoter, Kaveri Seed, MPS, Suven, Kitex for long term view. Request your opinion for the above stocks.

  45. prafulla says:

    I will be waiting for your valuable openion on V2r posted at 9.03pm above.

  46. prafulla says:

    ACE jee Thankyou very much for your such fast reply about my query on V2r. just a few minutes ago. I fully understand it and very useful to me as I have already bought today and I wish to add more. I am very happy and fully satisfied.

    • yes, but if you are satisfied, why were you worried if there were some sellers…pls understand your own conviction and risk level and then buy. But buy only if convinced. you would sleep better. God bless.

  47. db (@bd_dip) says:

    Hi Ace, my recent (two months) purchase is Ajanta Pharma and MPS Ltd. Whats your opinion about these two for long term?

    • these are good stocks, but i guess, it could take some time to appreciate because it is relatively discovered stock. I would also suggest you to research on cupid. Small caps are volatile, but may give better appreciation. But mps and ajanta are good no doubt.

  48. Balaji says:

    . what is your view on Aries agro

  49. Sarath Ramakrishnan says:

    Hi Ace, Appreciate if you can enlighten me on a couple of querries about Cupid.
    1) Pricing power of the company, If the rubber prices start going up will they be able to transfer that to customers/ UN ( since they have long term contract with UN) & do you think they can atleast maintain current NPM around 12%
    2) Do you think,with the UN contract & penetration outside india market can they sustain 30-50% sales & profit growth atleast for next 3 years?


    • 1. They get the contract through competitive bidding process and they have certain variables to take care of this, but beyond that if “during” the contract service the prices fluctuate, thats beyond their reach, which is understandable. They DO NOT have long term contracts. I am not sure if i followed you on long term contracts. Also, NPM as mentioned in stock story is variable of lot of things, and to be honest NPM of 12% is really excellent, To be honest, i would be happy even with 8-9% but 10%+ they can do it seems
      2. Looks like, management is motivated.

  50. A Bangad says:

    Dear Ace
    Aro Granite – Inventories , Debtors and Loan & Advances continuously every year , is this not the matter of worry , Please clarify.

    A Bangad

  51. Raj Gupta says:

    Ace sir,plz ur views about EON ELECTRIC n NATURAL CAPSULES…

  52. syantan says:

    aceji- do u track lactose(I),it has tie up with kerry group for food ingrideants.i want to know ur views about this.

  53. ravi multani says:

    hello ace
    what r u expecting bottomline and topline of cupid this quarter against last quarter??… u think they vl beat last quarter result??…

    • lets not focus on quarters only, thats a sure shot recipie for disaster because if this quarter is bad and you exit, and the next two quarters are very good, you will have a huge opportunity cost. That would hurt. Having said that cupid has good order visibility so this quarter should be very good too. God Bless and Best of luck with your investment.

  54. reddycv24 says:

    Hi. Ace. I have some stocks in my portfolio:
    600 – Bilcare @ 88/-
    200 – Blue Star Infotech @125/-
    600 – Gujarat Borosil @ 20/-
    500 – Haldyn Glass @ 23/-
    250 – Indraprastha Med. @ 55/-
    1000 – Morepen Lab. @ 13/-
    1000 – Nitco @ 15/-
    150. – Multibase India @ 70/-
    200 – Sintex. @ 75/-
    Could you please share your valuable suggestions /views on holding of above shares for making a concentrated portfolio.

    Thanks. with regards,

    • bilcare not interested at this moment. blue star is ok, gujarat borosil, still not convinced and ditto for haldyn. indrapastha not interested …morepen still under research and so far not convinced. nitco great brand ,but upside capped because of what it is going through. multibase not strictly tracking. sintex is good brand but follow it closely.

  55. ravi multani says:

    Thanks ace for ur reply
    i m holding big quantity of cupid and freshtrop….i feel angry wen some one criticize u…i know the best answer to ur critics is appreciation of ur stocks in longterm…

    • there’s nothing called as “my stock”. I present stock stories and if readers are convinced then they know what to do. If you are invested in the companies then its your company now. You own a part of business, be furious about your business and keep evaluating y our business.. ask questions to people who are running your business and keep them accountable. Start owning up your businesses now🙂 …. and the first step towards that is to start referring to those equities as your own stocks🙂 …God bless

  56. ravi multani says:

    well said…..can u give current order book of cupi???

    • you can aggregate from what orders they have received so far, in the annoucements sections. Not sure but i think its around 17 cr of just export orders alone….this would keep on increasing during the year.

      • Karan Thapar says:

        Why you are not sure about order book .While recommending cupid you said you have contacted with company.If you never asked about their order book what analyst you are ?

        • complete order book was around 15 cr + 2.4 cr which they got recently. I also got the same reply from the m anagement which is the right way to look at it. they disclose everything so why not aggregate it. Investing and making money is not for lazy

  57. taml says:

    ace- ur view in sudar industries&bodal chem.

  58. Kiran says:

    Hi Ace,

    What do you think about Talwalkars? Only listed entity in fitness business with good brand equity.


  59. a.p. says:

    Any news you are aware that caplin is falling??

  60. Niranjan says:

    Hi Ace,

    Whats your top picks in Pharma and IT at this point considering the valuations and the run ups?

    Thank you!


  61. ravi multani says:

    hello ace
    sorry to disturb u again…
    u told for freshtrop that it will b strong above 65….but it fall down to 60…so technically its weak now??!..whts ur view

    • dont get too much into technicals. yes above 65 is better and its already given a closing above it. its fine in my books so far. But technicals is dictated by fundamentals and try to take downside in your stride

  62. syantan says:

    ace- what is ur view in sudar& bodalchem.

  63. Noobtomarket says:

    Ace , what do you think of Superhouse ?

  64. Kiran says:

    Hi Ace

    What do you think about Talwalkars? Only listed player in fitness business in growing market

  65. MyInsignia says:

    Hi Ace, Do you track Unity Infra

  66. MyInsignia says:

    Hi Ace, Is there any businees difference between Aro Granite and Asian granito …..Asian sells tiles too which has a branding advantage. Does Aro sell tiles or only granites..

    • aro exports granite tiles and does not have a brand. but asain has a brand, and brand will always be a huge advantage “if” and “only if” brand is backed by growth. without growth everything else is a waste. If someone is so desperate to buy a growth less company then why asian granito why not nitco? nitco is better brand power than asian. But market pays for growth and pays more for consistent growth.

      • MyInsignia says:

        Very Well said.

        By Tiles I meant floor tiles and wall tiles. These products have great consumption demands and also account for maintenance.

        On the other hand Granites slabs are used only for kitchen counters or other counters. Granite are very strong and they do not need regular maintenance. It is more of a one time purchase kind of .

        So I think a tile company has a better opportunity then the granite company. Let me come back to my question – Does Aro Granite manufacture Granite + tiles or only Granites.


        • see, it manufactures granite slabs and granite tiles. but not ceramic tiles. Aro does only export as on date so demand is not a problem (even replacement demand) and its scalable (just keep exporting in different markets) and this point not everyone is getting. Asian has no growth so far, so for me personally i am biased towards growth. Big bazaar is bigger brand, but compare future’s stock price movement with V2 Retails. V2 is hardly a brand as of now, but still stock price appreciation is much better in V2 because its growing faster. Even Future compared with v-mart if you compare the stock price appreciation is directly propotional to growth. I hope you are getting my sense of investment direction, but its my own style , everyone should choose his/her own style. You look more convinced with Asian, so better go with your own convinction

    • MyInsignia says:

      Not really, its not that I am more convinced with Asian. Actually I have both … I have purchased Aro at 54 based on my own research and Asian was a borrowed idea …

      But now I want to hold only one of them …so was curious to know ur views.

      thanks Again

  67. Karen Shekh Jasmeet Singh fernandes says:

    Ace, Do you think Sharp India can be bought now!

  68. mayur says:

    Hi ACE, your views on RatnaMani Metals and Nitin Fire? also, SML Isuzu which i missed around 300 bucks ,is it still worth buy at cmp 770?

  69. Sagar says:

    Hi Ace
    I really appreciate your work despite what some people think. Your stock recommendations are backed by research and reasoning.
    I read your opinion on Ybrant. The stock has appreciated tremendously. Do you think it could be because the market is discounting their forward earnings post their recent acquisition. The ROIC seems to be higher than the cost of capital. Digital marketing does have a bright future and is expected to grow at a fast rate.

    • if the markets are discounting its forward earnings then previous earnings should not matter and therefore, ROIC does not matter as its based on historical earnings. Yes digital marketing is good area. By the way i normally use RoCE for software business, although i do not give too much emphasis on ratios as they are based on historical earnings and companies that are turning around will more often than not have useless ratios🙂

      • Sagar says:

        Thanks for the reply. I meant ROIC from acquisition. I have not invested in the stock myself however it does remind of the trend that pentaloon followed in the bull run from 2003 to 08. They were making negative cash flows , taking debt yet the stock appreciated coz of its future earnings before obviously tumbling down.

  70. Darshan S. says:

    Dear Ace,

    What is your opinion on Munjal Showa ?

  71. Sahil says:

    Sir, Do you have any update from Cupid AGM which was held on Sep 27 ?

  72. prafulla says:

    Kopran : Your views on prospects of Kopran please

  73. manthan89 says:

    kindly share your views on Rane brake lining and dynemic products

  74. rahul says:

    Hi ace what’s your view on electro steel casting cmp 21?

  75. rahul says:

    Hi ace what’s your view on electro steelcasting

  76. Roshan says:

    For some strange reason, comments are not published in sequential manner. Difficult to locate the new comments and replies. May be wordpress issue?

    • yes i agree. Even i am confused. This is a big big bug in wordpress. I have also seen my reply to one comment finally getting displayed under some other comment’s reply. This is so mis-leading, i am seriously thinking about building my own site, but there’s hardly any time to do it …

  77. ace bhai ,of all you recommendations i think cupid is the least risky one. but please clear some of my doubts if u have time

    1 why the export is not happening to US if they are already prequalified to do so,
    2 don’t you think they wil land in big trouble if they cant renew their agreement with UNFPA,
    3 Why they are not HAVING much presence in indian market
    4 (last year entire performance of the company got hit just because they didn’t get an order from GOI) dont u think such over dependance is a case for worry
    4 what u think wil act as a trigger for the pe re-reating , will it happen just because of increased sales which is overdependent on a few consumers

    • 1. Not sure the intent so asking again, why should they export to US?
      2. Yes, and that couple of years away, but normally, once you qualify for UNFPA, until and unless the company does something really crazy, they renew agreement.
      3. They are getting excellent margins in export market and thats why their emphasis on indian market is not huge. But they plan to very slowly start using the cash to do some branding moving forward, but their main criteria is first to make company flush with cash.
      4. Yes and thats why investors were shunting it away, but now with UNFPA, the delay and unpredictability hardly exists. UNFPA works with tight and strict deadlines.
      5. Trigger is debt free status, dividend that could come, excellent and honest management and above all, growth along with very less reliance on GOI, and its indian customers, cipla and dkt. Also, as company grows its credibility with UNFPA, the order size and contract durations are going to increase. So now the customer base is huge because of UNFPA (customers are different countries).
      Congratulations on asking yourself these questions. God Bless and Best of luck with your investment

  78. Raj Gupta says:

    Good morning Ace sir,
    Wts ur views on Capital First.I see huge upside in this script.. Do you?
    Plz throw some light…

  79. vij says:

    Sir I like 👍 ur recommendations a lot… Please comment on my stocks sir
    1. Sanghi industries
    2. Munjal Auto
    3. Cupid ltd
    4. Aimco pesticides
    5.Ifgl Refractory
    Sir if u don’t mind….please comment on short term and long term views on above stocks and one thing please don’t mention that I am not tracking…i eagerly require your suggestion
    5. Ifgl refractory

  80. reddycv24 says:

    Hi Ace,
    Your views on Indian Hume Pipes.


  81. Ravi says:

    Ace Sir, can you please reply which among the below stocks are good bets? I understand that this list is really long but many of your readers would be having the same doubts, so it will be helpful for them. Hope you don’t mind.

    1. Caplin Point Laboratories
    2. Control Print
    3. Excel Industries
    4. Lanco Industries
    5. Lumax Technologies
    6. Manjushree Technopack
    7. MM Forging Limited
    8. Mold Tek Packaging
    9. Munjal Showa
    10. Nile
    11. Oriental Carbon and Chemicals
    12. Patels Airtemp
    13. Polyplex
    14. RS Software
    15. Samkrg Pistons and Rings
    16. Sequent
    17. SMS Pharmaceuticals
    18. Talbros Auto
    19. TV Today
    20. Waterbase
    21. Natural Capsules
    22. Asian Granito

  82. vij says:

    Sir please how to calculate that the current price of the stock is under valued … Please tell the formulae for calculating

    • there is no such formula. Absolutely no such formula exist. stocks are either under valued or over valued and unfortunately no-one can tell the quantum of it. I am curious to know who told you such formula existed🙂

      • vij says:

        Sir please tell me how we can decide that the stock is under valued or over valued on what factors we can decide …..i need ur opinion

        • thats the art you learn with time experience and analysis past winners. See and read AR about hawkins, symphony, la-opaLA, kajaria, and ofcourse PAGE and eicher, you will understand what makes stock prices move. First understand if you are more interested in turnaround stories and already established stories and this depends upon your risk apetite. if already established stories use cash flow analysis and ratios and earnings potential. if turnaround then research what will trigger the earnings rebound and profits for the stocks.

  83. mayur says:

    Ace ji, looks like Capri Global (money Matters) turning around after massive blow in 2010..taken over by US real estate firm, holding 50%+, total promotor holding reached to 74%…trading at cheap valuations..0.6 times of book value…P/E ratio of close to7…Debt pledging…
    however, caash flows are in -ve..but improving….and other concern is sector…
    Any thoughts here?

  84. sumesh says:

    hi whats ur view on panchsheel organics

  85. sam says:

    Hi Ace,
    What are your views on Lycos as a product which ybrant digital is now promoting. Since you mentioned you belong the same space, would love to have your say n this…

    • same space as in software. I am not very confident of lycos.

      • sam says:

        Would be you be kind to share your reasons why you are not confident on lycos…i’ve seen some interview of Mr Suresh Reddy and i think this man knows what he’s doing…..

        • first of all market cap is way too huge, secondly market havent seen the performance of the product so far, still lot of is being discounted. Third, somehow i am not getting convinced. I could be wrong, make no mistake about it. So if you are convinced, go on, but i will not🙂

  86. praveenks97 says:

    Dear AceIT , Shriram City Union finance Vs Capital first . Which one will you prefer for a long term investment ?

  87. Dharin says:

    It seems your intention is only to defeat the famous blogger valuepick .Otherwise why you are still keeping message against that blogger at the end which posted on 27th and posted every messaged dated after that message before that message. This is cheap professional jealousy .

    • against who blogger? i am also keeping messages which are posted against me. God bless.

    • Rahul says:

      Dear dharin,
      Both bloggers are very good and different. Some worship god shiva, some worship vishno. So stay with whom u like more but don’t criticise others… Also vp never publish any negative comments against him whereas ace will face all questions thrown at him. Still I would say both are very good…

      • rahul, you are using big metaphors. Let Gods be god. First of all i do not go to forms and other blogs, have told so many times and secondly i do not understand what “professional rivalry” the gentleman is talking about? Every blogger, i am sure tries his/her best to help others and its sad to see people interpret everything negatively. Anyways, may god give everyone peace of mind.

      • Prashant says:

        Dear Dharin,
        this is what I also say, why unnecessarily peoples are comparing .

        When peoples are not able to make money they do all these brawl .
        Both are good are at their own place and they will not be knowing each other since both of them are busy in earning and helping small investors .

        So better to ignore such elements and lets concentrate of earning money and contributing towards community .
        Thanks & Regards,

  88. jayaraman says:

    What is your view on shilpi cable technology

  89. MyInsignia says:

    Hi Buddy, Coral labs appears good on technicals. Can you share if you have any info on its management and future prospects.


  90. hi ace ,
    Rubber price has nose dived to 95/kg .How much of a positive impact will it have on liberty shoes raw material cost and can we expect the benefits to incur during this quarter ?

    • it would depend on the inventory also, so its possible that we may see some spill over effect next quarter. Dont get too focused on each quarter’s number, try to have a FY view, will help you not to move out of stock before maturity.

      • Do you feel at this junction liberty has brand visibility like that of bata ?
        I stay in bangalore and I have seen liberty stores are mostly empty and are not in the prime locations .In my opinion liberty should focus on brand rebuilding and advertisements

        • I agree with your view.actually liberty has very recently entered south markets. Liberty, historically has been mostly a north india brand, and this is where the scope lies in expansion. Most of their revenues from from North India.

  91. sourabh says:

    hi ace ,
    Rubber price has nose dived to 95/kg .How much of a positive impact will it have on liberty shoes raw material cost and can we expect the benefits to incur during this quarter ?

  92. Gita says:

    Hello Ace, Your view on stylam industries

  93. hi ace ,
    Rubber price has nose dived to 95/kg .How much of a positive impact will it have on liberty shoes raw material cost and can we expect the benefits to incur during this quarter

  94. cp says:

    Dear ace whats your view on momai appariels ltd IPO , which is likely to join into ashapura intimates fashion ltd.

  95. Jitesh says:

    Dear Ace,
    You are really doing an awesome work..god bless you..i would like to ask you few things about – Huhtamaki PPL, Aegis Logistics and AVT Natural but all of my investments are down by 15-18%..just wanted to ask your expert views in case you can suggest me to hold or book loss and shift to some other disclosure – all these stocks are backed by my own analysis – promoters are increasing their stake in Huhtamaki so chances of delisting are very high…in Aegis – the value unlocking can happen once their deal to sell 40% of singapore subsidy..and in AVT, their results are great year after year..a long term growth story…all my research will be of some use if you can comment with your views..thanks..!!!

  96. Birsha says:

    Hi ace,
    Am holding suzlon @ 15 in large nos. Due to fccb shares hitting the market its on LC continously and will probable go lower. I am very much convinced on its turnaround next FY. I am tempted to buy more at these prices but dont want it to be an emotional decision. Should I rather invest in other stocks ??

  97. sam says:

    Hi Ace…Do you see any potential in GTL in the long run?

  98. ravi multani says:

    gud morng ace
    any update of cupid agm??

  99. syantan says:

    ace ur view in microsec fin

  100. syantan says:

    ace microsec is good buy?

  101. Jitesh says:

    Dear Ace…I have just purchased 600 Aro granite @ 78.30…lets see how it multiplies in long run🙂

  102. syantan says:

    ace what is ur view in maricokaya

  103. Jay says:

    Ace, do you have any of idea of granite mining scam and involvement of Aro in it?

    • as per aro they are not involved and they said more than that is subjudice. we cannot paint everyone with the same picture, lets wait for the verdict.

    • Also , ARO does not own any granite mines man, its procures its mines from various parts of TN, Karnataka among others. Secondly, the scam as far i know was “suspected to happen” in madhuri (if my memory serves me right), not hosur where its “processing” operations are based. So lets not create rumor by saying ARO might be involved. These are sometimes tricks by people to get into good companies

  104. rashmi says:

    wow ace!!!freshtrop on uc,congrats.

  105. Arun says:

    Ace Investor Ji – Your view on Duke Offshore

  106. rashmi says:

    congrats ace,freshtrop on uc

  107. ravi multani says:

    cupid aimco v2 and waterbase freshtrop all r in uc today…..ur critics got some answer..god bless ace..
    live long life…

    • god bless everyone. Best of luck with your investments brother. Remember there could be some downdays when the conviction is tested, but if you’re sure of the stocks, in the long run you “will” make money. God Bless

  108. sanjeev jain says:

    dear aceinvestortrader today was AGM day for Liberty shoes .Any updates on restructuring/or any new news in the above counter .I am holding 500 shares @ 322.
    Ur views will be highly appreciated.
    sanjeev jain

  109. Rohit Gulati says:

    Dear Ace,I hold very huge quantity of Indosolar and holding it for last couple of years(It’s into solar PV manufacturing.My cost is arounf Rs. ,currently Indosolar is at 6.10.Kindly suggest

  110. ravi multani says:

    hello ace
    any news on freshtrop rising 20%??…and which date its quarterly result is coming…

  111. sri says:


    Can you please tell me your view on panasonic energy india company, though it has run up 4 fold in past 1 year, fundamentals are looking good, what is your view on this.


  112. harsha says:

    hi ACE,

    Read previous views on ARO and ASIAN, and rightly said that ARO’s profits are growing.But why is ASIAN running and not ARO😦

    • aro already has run around 17% in two days. the stocks do not go up everydays. The stocks are not to be traded like this. Its important that you yourself are convinced before investing

  113. MyInsignia says:

    Hi Ace,

    Any Comment on Vikram thermo. Seems to be in a new segment all together with very less competition but the question is how far the product can grow ?


  114. Angel says:

    sir, your views on Rubfila international…can softening rubber prices do wonders for this zero debt company

  115. J Gopal says:

    Hi Ace,

    What’s your view about NCC Rights @ Rs. 20 ?…Whether IMHO suggest to subscribe to rights ?. If yes, whether to invest in rights by selling Original holdings ? What’s your suggestion ?


  116. J Gopal says:

    Hi Ace,

    Do you suggest to invest in Kitex at the current level ?


  117. mano3427 says:

    ace ji
    do u know about the capacity utilization of cupid .can they handle big orders without further expansion?

  118. serene, they did not have any effect. because it also get lot of raw material from other parts of TN, Karnataka amd most of the raw material is imported. Please read the stock story in more detail about the natural hedge that i have written, also understand the business in more detail to understand what kind of news impact business. Also, no links please.

  119. taml says:

    aceji -today finally got some qty in orient bev cani buymore @this level

  120. MyInsignia says:

    One of the big shareholder Dilip Kumar Lakhi is selling Aro granite in open market since yesterday. Doesn’t look like a threat but just thought of bringing this to the forum’s notice.

  121. vithal says:

    Your view on gm breweries.

  122. bharatpitti says:

    Dear… the moment ARo is running almost at 100% capacity… expansion is reported in the latest Annual report… is then its going to snatch the growth in top line and for that reason in the bottom line during next two to three years…?

    • its running close to 85% utilization on two plant, as per last quarter and should run close to 100%, but last FY the entire expansion was not in play, so this year its going to the third plant is not running anywhere close to even 50%. also management is cognizance of this fact and in due time they would let shareholders know about the future growth areas.

  123. J Gopal says:

    Hi Ace,

    Any updates post result ?


Comments are closed.