Background: What do you do with a company that is debt free, dividend paying, has great cash flows, commands an 5 yr Average RoCE of around 33% and 5 yr average RoE of 25% and RoIC of 38% and is available at 6.5 PE, has grown (since Mar 09) at a CAGR of 35% topline and 75% bottomline and is the only listed play in its sector.
The Company: DHP India Limited is a Manufacturer of LPG Regulator (Liquified Petroleum Gas Regulator) and its accessories. DHP started as trading company but evolved into a manufacturing company which substantially improved their bottomline. The company is export oriented company and manufactures rubber hoses for gas connections and Gas cylinder regulators for both industrial and domestic use. The company has a very simple business and need not much explanation. They export their products to various countries at the moment but more importantly it is going to enter newer countries and once they do (after finishing the formalities of getting licenses), the earning would get a major fillip. The company as of now is export oriented, but the domestic opportunity is still not explored by the company. One of the major turn-offs for this company for not pursuing domestic market had been the red-tape, which they hope would be cut with the change in regime in the center and this should open a new and massive opportunity for the company. The company recently underwent expansion and the entire expansion was funded by internal accruals and is therefore, running at around 50% capacities which give it ample opportunity to cater to potential surge in orders. Although the industry is fragmented with lots of small players in the market but the company stands out on back of its superior processes and products and excellent operational excellence.
Why to Buy:
- Company is planning to enter newer geographies, which would give a major fillip to the earnings.
- Domestic opportunity still un-explored and in time company would start contesting tenders which again would open a massive opportunity for the company.
- One of the most profitable companies in the entire sector.
- Extremely honest management.
- More than 74% promoter holding without any pledge.
- Revenues grown at 31% CAGR and profits at 58% CAGR in last 5 yrs.
- Extremely strong return ratios, debt-free, strong cash flows, and lots of spare capacity to serve potential surge in orders.
Valuations: This debt free, dividend paying, high cash flow company is available at just 6.6 times Trailing PE. The company has shown marginal dip of around 9% in first nine moth YoY in sales and around 10% in profits YoY which was on back of some extraordinary growth in Dec 13 (and mar 14) numbers. So opaquely, the numbers might be slightly below par, but given the fact that the revenues have grown from 12.53cr to 49 cr and bottomline has increased from 0.65 cr to 7.4 cr the trend is strongly up and the company is expected to continue to grow at around 30% CAGR for the next 3 years. This could go up if the company finally decides to take a plunge in the domestic market too. YoY the results may look subdued for next couple of quarters, but that should be taken care of subsequently with newer orders kicking in.
Technicals: The stock corrected on back of subdued results but bounced off from 200 DMA and therefore, technically very positive sign.
The Company is for genuine long term investors and at the current 6.5 trailing PE and 7.7 FY 15 PE, it’s a very attractive level to enter with a view of few years. The stock will reward patience very aptly. The company has one of the best margins in the industry, is being led by a very honest and down to earth management and is the only listed (as per the management) company in the space. The company has shown strong growth in last several years and is expected to continue to grow at a brisk pace in the coming years. The company’s small equity and high profitability gives it a very big EPS growth for relatively small surge in profits. Dont just look at past results but look at the earnings potential in the next few years.
Disclaimer: No holding in the stock, but it is safe to assume that I may or may not invest in future. Also, the above stock view is my personal view in individual capacity. For rest, please look at the About page.
God Bless !!
aceinvestortrader 
got 50 of them at 160 just now, thanks boss
entered at 160.. good call thanks a lot well analyzed
oh my god… this is 136 now, 15% down from my cost… seems people are not buying this stock and making a big mistake.
now around 140… this should not be valued any less than 20 p/e which means more than double from here purely because of being the sole player in this product category.
sachin, this is a low volume stock…pls let the stock settle and enter… research it well
280 should be fair value for this
please have patience, you posting message every second is not good. the stock is good, the future is good, but rewards will take their own time
reallyyyy goood call, this will trade in triple digits in future i hope
Triple digit or Quadruple digit?
dont have such ideas man…just let the business perform the stock will take care of itself
great volumes
sir,
country will move towards pipline PNG. so future of this company is under question mark..
they are not making cylinders, they are making regulators which are used as an endpoint and therefore, it there in cylinders as well as pipelines. if you have a pipleline, just look at it.
great opportunity to buy at 145 now
Current year sales and profit are showing minor degrowth. Any specific reason for the same?
they are an orderbook based company, so the last year there was a strong order that was executed in Q3 and Q4 and slightly in Q1 this year, that’s the reason. that’s what happens when a new geography is added … or there’s a sudden increase in export volume
And the order book going ahead seems robust? How much are they benefited with constant downward movement in zinc and copper?
drop in input prices helps right
52 Week High of 185.40 will be tested in next few days.
This will not close below 150 today.. so do not miss the chance to buy.
IMHO i like this more than garware wall rope
why has it actually turned red???? feeling foolish today after buying at 160, should have left some cash to enter now.. anyone sold off heavily?
dont know about price, but dont try to act in haste…
well, true, but I wish it goes up, even now,,,,,,,hmm
it doesnt work like this my friend… but seeing the volatility in giving calls during market hours, this was the last call. the volatility is unbearable both for people who invest and me. probably the earlier method of giving the calls offline was the best.
btw. what are the exporting countries it does? it seems to have funny annual report. no real details
funny? its AR is so clean and so is its balance sheet. it doesnt provide details of specific countries, only about continents.
wanbury results today. excited as to what is in store for us. hope there is no more spring cleaning left.
i would be very disappointed if there is something like this, because as far as my understanding goes, there’s nothing bad that one should expect in this quarter.
maybe i can do some on ground research with dhp since office is very close to my house…
from this low point if company manages to make a U Turn.. it will be a very bollywood type comeback
you talking about wanbury?
oh great, please do that… they are very conservative so you may have to pursue them a bit, but do it because this is great potential. i had a word with three small regulator manufacturers who know dhp, and they said, they had no clue how dhp was managing such margins. anyways…great.. i am glad that among other things, we have some genuine investors like you…God Bless
will try.. but main problem is most small companies are not accommodating.. with ifb agro i tried for a month to get permission to meet cs but did not entertain.. anyways, lets see with this one
i understand…
and yes, i was referring to wanbury ..
as expected wonderful results by wanbury .. our faith will pay 🙂
Very nice results…i think everyone gave up on wanbury and moved on.. lets hope for bright future quarters as well
that’s why intelligent investors got even better valuations to enter
at such a low point wanbury is undoubtedly the dark horse of the pack..
Sachin,i think this is not fair to evaluate the stock in seconds,if u have conviction then buy forget.Good valuation,strong future will reward surely..thanks ace to open our vision..
great noone’s taking about vidhi that is 15% up…when it was going down everybody was cribbing…noone comes around to give good news
sir,
very poor quaterly result on YOY.
yes, and there was a reason, which i just replied to in a comment and also in the post itself. atleast read the entire post, understand it and then invest man.
Decent pick, Been on radar for very long time but never was convinced to add to my portfolio. Operating profit reduced 50% YoY ? Other income increased increased about 4 times.
Again we see a spike but this time 1 hour before you recommendation time. Good to see Investors / traders getting smart.
This company is yet not convincing.
You are wrong, completely. there was no spike “before” publishing. it was trading flat, look at the time before commenting. clearly you pre-conveived notions about things here.
james please check the 1 day price chart on money control. ace posted the idea at around 2.36 – 2.37… notice carefully that uptil 2.34, trading volume was a paltry 617. post that, volumes shot up like crazy to 52871 by closing..
have you seen a trading floor ? then you’ll know that traders are so sharp in their keyboard eye coordination that it will a few seconds for them to put in a trade and do what they have to…
anyways, this is just for all other blog readers also to verify.. there was no dirty play (which might be evident since the stock closed flat).. im stating facts.. kindly go to moneycontrol and check the price volume chart for yourself..
Congrats Ace, Finally we get a good result on Wanbury..
the results were always getting better and as we also knew why the result last quarter was bad, we knew it was just a matter of time, and hopefully the company will reward patience.
why didnt you approve my other comment?
which one? post again…and remember that comments that adds to the quality of this blog and are not duplicate are approved. Please keep in mind
Your views on to day publised DEC 2015 results of Godavari drugs please?
its not my recommendation but overall good set of numbers
Any Idea on PTC India. bought at 99. Please give ur view.
not too keen on it
Dear ACE,
V2Retail is going down after result…is there any wrong sir..?
nothing wrong that i know of.
its pretty strange..
given the liabilities everyone is aware of… what % of the current book value of 120 would you consider as a psychological ceiling above which you would not invest.. for me its 50%… so its just my hunch that it will top off at 60 until more clarity is available regarding disputes
i know my thought process is a little nutty.. is this perspective for v2 valid ? i know the ceiling is arbitrary and can vary from one person to another but still. kindly do share your thought..
for a growth investor like me, i would keep on buying every decent dip in v2 till i am seeing future growth. book value is of little importance to me.
Plz Share ur view on Ecoboard Industries . I have bought this around 25 in 2005 [Ashishchugh pick] . now is trading around 5. Sholud i continue ot exit ? Thanks in advance !
Plz Share ur view on Ecoboard Industries . I have bought this around 25 in 2005 [Ashishchugh pick] . now is trading around 5. Thanks in advance !
i like their products, but till their problems are resolved recovery is distant dream
Dear Ace
As you stated, sometime ago that formulation cos will face margin problem in March quarter… Could you give the reason for this because I am unable to understand?
not sure i am following you, can you give me the context or tell me where exactly i said that…
The following lines are from this blog (wanbury)
For example, mar quarter was an aberration where its EBITA was flat (that was mainly because formulations division had an abnormally bad March “month” ) but then it bounced back strongly in the next quarter to not only give a strong EBITA performance but also gave profits at net level.
oh ok. last year, they had some challenges in the mar quarter and therefore, their EBITA was flat, but as mentioned in the comment that was an aberration so its not expected to repeat..
Thanks Ace. I am clear now (did not notice aberration word in your earlier context)
never mind, it happens
Dear Ace,
Simmonds, Prima,Vidhi and Pressman started to fly..Thanks for your regular inputs/comments .
* Your giving the call during market hours is better than the earlier method of giving the calls offline. Now I am getting chance to buy…
Thanks
Good Night.
Ace sir me excited about waterbase rersult….as they have paid lot of tax in last Quarter hope this time they will come with good balance sheet. god bless 🙂
i agree with you totally.
Sir any idea on sudar industries… looks tempting buy at current valuations…
no change in views at the moment
V2 on a downturn since result..
Failing to understand… i mean, if stock is stagnant it’s ok but it has fallen almost 15 percent ..
Sir sorry to ask… but what is ur view… im new here… i dont know .. whats ur old view on sudar…😷
kindly search the blog through google
any idea on veer energy Sir ??? I have huge amount. Results are not so good. should i hold or book the loss??
never liked it
Should we Expect the same from SharonBio [23] as we did in Wanbury !
The Best time to Buy a good Company is during its bad time !
wanbury is wanbury…
V2 is down even after a very good result. Any ideas what is happening?
no, but i think its stablalized around these levels now right…probably someone big did some profit booking
Awesome results by vidhi. One of my high conviction stock
no doubt
Excellent result by Vidhi sir ji. What a pick. Look a the 9 months numbers. profit more than doubled. Its going to be in a different orbit all together if they continue to deliver these numbers..Cheers & god bless!!
yes, great results, this guy deserves much higher PE
Hi Ace, Please give your opinion on Vidhi Result. Its out
needless to say its awesome results. given that they had 4-5 weeks of machine breakdown in this quarter, once again they have given smashing results..
Best performance growth on qoq and yoy. What an amazing performance. Thank you ace for finding such a gem at early stage. I think this is just starting.
i agree, its just starting and it deserves much higher PE
Vidhi Result out. whats ur take?
just gave my take in one of the other comments
Sirji maaza aa gaya vidhi mai.
Kudos to you to bringing this gem to us with such a well drafted report.
Good times ahead 🙂
yes, much better times ahead…
Can you throw some light on Mafatlal industries….its result today
no change in from my previous views
Sir, i cant find any of your views on Mafatlal ….before asking the question i will go through with search option first….but nothing found related to Mafatlal,please enlighten me.
kindly use google for the search on the blog
Hi ace,
As a growth investor I wanted to know how important is peg ratio while evaluating a stock. As i see there are lots of undervalued stocks that you suggested plus other stocks which have delivered great growth over the past 5 years and have a very low peg ratio. Is the ratio really effective in the Indian context?
PE and PEG are mostly to satisfy one’s ego. I dont really care too much about them. I would not make my buying/selling decision based on PEG or PE alone.
Ace,
So how do you really determine if something is expensive or cheap but for these ratios?
whatever is growing should be bought ir-respective of PE and PEG, because if you try to find out margin of safety in these stocks, you will never invest into it. you can invest in a low PE or PEG stock but it may stay such for an extended period of time if growth in not there. earnings growth/degrowth changes PE and therefore, for a growth investor like me, i would not worry too much about these ratios. these ratios are good guiding forces but in isolation it makes me make mistakes.
Thank for the reply ace. Makes a lot of sense.
sir, just wanted to know how you acquire details in dept about companies..? about management being honest,innovative company etc…
so many times we have discussed this. also i think its pretty obvious from the stock story itself.
Hi Ace,
DHP is a very wonderful pick. But I one question keeps haunting me .. What is the scope of repetitive business of this company. I mean often do we replace the LPG regulator ?
Thanks
your question is related to its domestic opportunity ?
Both domestic and as well as industrial.
its directly proportional to number of houses to be built/cylinders .. if one is bullish on housing sector, one has to be bullish on this.? forget about replacement demand,I think the new demand itself is very big. just look at pressure cookers … the replacement cycle is around 5-7 yrs, i guess you got my point right?
Yeah that makes sense. By the way thanks for vidhi. I am having huge conviction on your other picks like prima, waterbase as well
things like induction stoves may put this off the track
that’s a long long long shot…
I have not entered Media one Global. but little curious to have an idea why it is been keep hammering and not been considered by market despite the past numbers and others looks sound.. is it because of volatility media revenue business model or any other reason..
i have not recommended media one stock
ACE, I did not mean you have recommended, I just asked for an understanding purpose if you got an idea about Media one.
good results from waterless
true… its waterbase though 🙂
Hi Ace, your views on result of Waterbase and Aimco ?
very good results..aimco’s results are very encouraging. i was a little worried about looking at other results, but they have done very well, inspite of increase in 120% raw material price . Very good.
Ace
Your view on Aimco and waterbase results please. To me it seems the results are really good for both..but whats your take.
Thanks
both very good. they have done really well. i am elated.
Sir, but in case of Aimco:- Top Line and bottom line increased YoY but decreased QoQ…is it good then? sheer intention of this question is “Confusion”
this is an agrochemical company man. the results are to be seen YoY? why do you think it should be seen QoQ? also do company these results with the so called industry leaders and you’ll understand why i like the results.
Nice to hear that …and congrats to you…you are the man 🙂
Ace sir 🙂 🙂 for waterbase…..last quarter TAX kaam aa gaya. god bless 🙂
true, and looking at the trend, i guess, the business is doing really well and is expected to continue to do so…
Ur view on videocon industries is it good to hold
dont like it
Is it adviceable to add vidhi at this stage or shall I wait for one more quarter and look at the sustainability of growth at this pace.
i like vidhi a lot no doubt. its important to understand that even with CMP its still in single PE for FY 15 annualized. i dont think for a market leader its a high price … anyways take your own call buddy…god bless
as we see all picks of ave except freshfruits have thrown outstanding results now we hope tomorrow prima do the best and come with flying results. Wht say ace sir.
lets, see what happens with inventory…
at the same time, prima is excellent and has a slew of wonderful earnings lined up
Yes ACEji,
Prima is wonderful scrip. But if we get disappointing results and it goes little down, it should be a great opportunity to accumulate .
Thanks & Regards,
Prashant
ofcourse..
Ace , Please provide your view on Singer result and whether we can continue to hold.. Thanks.
decent results… pls continue to hold
Ace , Are you still tracking Cupid.. With the kind of result they provided and dividend of Rs.1/share , shall we continue to hold for few more quarters and wait if we have cupid shares .. Expecting your response..Thanks for all your help.. Keep up the good work.
good results. i had given a book profit call so just continue to ride the cost
Ace I am not getting you.. Whether I need to book profit by selling all shares and invest in some other recommendation given by you after research.. Please advice..Thanks.
its up to you….
Dear Ace..What to do with your old recommendations wherein stocks which i am holding – Cybertech wherein my losses are increasing high on daily basis..as on today the loss is 50%+ and Wanbury the losses are approx 46% and Aro granite is also down by 13%…
i had given a complete post dedicated to it. also aro granite was recommended at these levels only so not sure how the losses are there. also one should know that stock prices follow business growth so if the growth is there, sooner or later stock prices would follow
Sir, many investors like me have been holding Cybertech, wanbury and Aro granite (when these stocks were appreciated already and in your remarks you confirmed that they were still bargains at those levels and hence the losses occurred..
you did not think that those were bargains ?
Hi Ace Your Views on Salzer Electroic and Aimco Pescticides Result
already given
Ace prima is in plastic furniture business if i am not wrong?
have you read the AR or have you been to its website?
both and it has closed its acp business which means it will avoid the losses from that segment now right?
yes, once it sells the unit right..
I believe company already shut that business?
from this quarter
Ace bro please check your mail
Sir, DHP India announced board meeting on Feb 20 to BSE, any positive news expected?
lets see
most awaited day for me. Results of prima plastics. Hope it makes all investors like me smile and happy by profit going up day by day. Sir i want to know your views on Patels Airtemp and Sunil Hi Tech. thanks in advance
replied on both in the past
ur take on pressman results?
decent results… PBT spiked up which is very promising
prima reported loss before dividend income.. ACP pretty much crushed them this quarter ace.. they took a very good decision of getting rid of it.. the bottomline would have scarred their track record if not for the dividends..
actually as a matter of fact i was bracingmyself to see some losses in plastic division, but they handled the high cost inventory very well. its pretty good results and i am extremely happy and elated about it
ace sir, your view on simmonds marshal, Qtr. result . is it hold for long term
yes, as said earlier, i liked the results
Dear ACE, investors r blaming u for cheating them by giving call and making quick money by using information technology. In several occasion you have recommended stock and stock fell due to heavy selling. do u have any explanation to make?
yes, dont know about other but you kindly stay out of the shares that i give as you clearly invest with just days in mind.
Angel, this is not a court. If you like come to this blog or else stay the **** out of this blog.
Ace, we hope you to have separate post on Prima’s results when they are out…since it has been talk of town past many days and many of us are holding it..
Dear ACE,
Is there any result update about Prima…..?
suprisingly much better results than what i was anticipating. i was bracing myself to see losses in plastic division but they have managed a 0.6cr in that division like last quarter and that’s very encouraging.
Ace, please comment on Prima Result..
commented
please share your views on Srikalahasthi Pipes Ltd (formerly Lanco Industries)
not interested in it
Did you looked at prima numbers. They are saved by the dividend they got from there subsidy . I didn’t expected loss on operating basis. Though its mainly due to acp but net profit from plastic business also down by 50%. . looks like margins are under pressure. What do you think ace bro is it temprory blip or we are missing something.
margins were expected to be under pressure because of higher cost inventory and i am actually pretty happy to see they have still managed to show profits in plastic division
What’s your view on prima plastic on FY14 DEC result?Sir any update about their new Rotational Molding plant on ACP Premises?
already replied on results
Prima results are out.
Net profit up 10% YoY and 33% QoQ;
Net operating income Up 10% YoY and Down 2% QoQ
Looks good to me. Ace ji, your views pls
Hi ace between I had question about vidhi. Why do you think there will be pe rerating done here . as its peer competitor are also trading at low single digit pe levels.
sector leaders always command premium
Its already trading double the pe of its peer
why it should not trade at 4 times its so called peer…please see the comparison between dynemic and vidhi.. vidhi is “way” superior and still is trading at single digit forward PE..
uptil now, the market has probably not understood this sector clearly..reason for low pe..so, once investors understand the product i.e. food colors and its recession proof demand and decent pricing power main players enjoy due to high barriers to entry (because of very stringent quality standards & certification required).. rerating might commence
in vidhi vs dynemic debate.. i feel that dynemic is yet to play its best card.. the dahej plant which will probably come online next year.. promotors are in the process of raising money through FD.. also, there is no reason dynemic should trade so cheap compared to vidhi only because it does not manufacture “full range” of food colors.. both are dividend players and have low debt + showed decent growth..
let us see what dynemic has in store for us in Q3 results.. YOY it is definitely going to fall short of expectations because last Q3 was companys best performance inits history.. markets have a tendency to act immature and they will probably write it off.. that would be an excellent opportunity to accumulate..
i think i have covered most of the points that you have raised in favor of dynemic when i gave the comparison but again to re-iterate, that its not the case that vidhi is not going to expand its facilities, but i would wait for company to give its official annoucement on it. also, vidhi has got its act right in last 2-3 yrs and gives a good part of its earnings in the form of dividends and that gives it a downside protection. if somebody is really planning to invest in the sector i would stay with the leader and yes, it matters if you can produce the full range of colors. dynemic hardly produces handful of colors. And yes, as you rightly pointed out, markets have not yet figured out how to value the recession proof nature of this industry… same thing happened with aqua industry….now lets see what time has in store for us.
Sir your view on Orient beverages result
no negative surprises so decent
Hi Ace, Whats the update on result of Orient Beverages ?
just replied
Ace, ignore my previous comments. I saw later that you have already provided comments on Prima results. Thanks
no worries. thanks.
sir, kindly throw some light about Koprans result and future.
not tracking it anymore as mentioned earlier
Plz share ur view on Trident !
not interested in trident
ace your view on archidply and nutraplus results both the companies have posted good results , your view on these companies
already given my views multiple times on it
Looking at the huge potential of food color sector can vidhi’s management create share holders wealth.They have been exporting to more then 100 countries mainly to Australia China Japan and Europe. Do they have any capex plan for increasing there production for entering new markets as they are trying to. For domestic sales they are facing challenges from unorganized sector. But domestic is huge opportunity for them. Can the management handle this and make it big. The main experinced person behind vidhi is Mr. Vijay attre and he is above 70 now do they have any successor of Mr. Attres caliber.
I am very much impressed by there numbers. I am not pointing anything against company or you. But was curious to know the details. If everything goes alright I believe this will be the company of this decade.
who said the main person behind vidhi is mr. attre? ofcourse company seems to have caliber to make it big, and they seem to be in the right direction. I hope all of us have understood the business and let’s let the business perform and i am sure the stock price will follow it.
Not worried about stock price at this point. But wanted more information about company
At this point there is no source of getting more information on the web.
any particular information you are seeking
Sir any update about their new Rotational Molding plant on ACP Premises?
no, its too early for that…
sir, regarding freshtrop fruits, is the news genuine that Thomson Reuters has given buy recommendation for Freshtrop with target price of 1500/-……..
i dont know, please post the link for that
its not a report.. these are MMB rumors.. lot of people talk shit and are very biased on that thread.. do ignore
no wonder. if one has to make money one should stay away from such boards and invest that time in researching and understanding stocks and businesses that you buy
https://commerce.us.reuters.com/purchase/showReportDetail.do?docid=65985846
i dont think it helps your point. there’s no mention of target price as its a paid link
I am not concerned about the target someone gives, but my real point is the coverage of this Big analyst house. Its been said that Reuters prepare it for US and UK market. It is good for small investors like who can see our stock recommended by them also. Price will follow the result sooner or later but the limelight and positive feedback boost the moral of the investor too who are sitting on huge profit and also to whom who want to invest more. God Bless.
Sir any update about PRIMA PLASTIC’s new Rotational Molding plant on ACP Premises?
sounds interesting.. ace, is this capacity expansion as planned ?
not sure i understood the question
Ace, the “shop now” link on V2 Retail website now points to v2kart.com. It seems they are going to launch their ecommerce site
great….
though its not opening but its helpful. Ace sir this is great news and thanks indianbull10 and please keep update us….i like V2retail so much too
Ace….Stock…stock…stock..all the time…Please take a break on Sunday….and enjoy India Pak thriller 🙂 – sacbee
Ace, I think simmonds can be added more even at these levels after seeing the results…PAT almost 4 times increased y-o-y….what says?
totally agree
Sir,
Gulshan Polyols posted fantastic set of numbers for Q’3. Would want to know your views on the same.
Thanks
have already given my positive views on gulshan poly
Vidhi. I wanted to know how much capacity they are utilising now and do they have any capex plan. Wanted to get some insights for demand for there products.
capacity utiization % is pretty high, which i beleive is in 80s…you second part of question is already replied.
Hi Ace,
I have just started looking at food color industry and since there are only 2 players so obvious choices are Vidhi and Dynemic.
one quick point I wanted to clarify was, you always mentioned Dynemic has limited colors and Vidhi has a more extensive set hence it adds to its superority
But from the site it seems Dynemic has 16 whereas Vidhi has 14 colors
http://vidhifoodcolour.com/portfolio.php?m=27#tab-8
http://www.dynemic.com/food%20colour.html
Also about Vidhi being the leader, its not a huge gap between them and with Dahej plant coming up for Dynemic its not too difficult to gain market share.
Am I missing anything here?
Yes the latest results for Dynemic have been poor and needs to be digged further if its a one off or a trend.
Cheers!
Niranjan
yes, you are missing this discussion which has already happened in the blog. would suggest you to dig deeper about Food colors, and also call the companies to clear any further doubt you might have. Anyways, vidhi is the only listed company to manufacture the entire range…
Can they compete with roha dyestuff. Which is non listed but major player and having huge customer base
rohi is not just a major player but a world’s no. 1 player (followed by vidhi) and vidhi has been competing with them all this while isnt it?
sir, can i take entry in freshtrop fruits @cmp. also i read on bse site that, Mr.Ashok Motiani sold small quantity recently.
thanks
please understand that the stock has already multiplied by three times and if you are comfortable then yes, its a good bet at any decline
sir what will u chose between prima and nilkamal at the current price . please comment
prima
Hi Ace,
Thanks a lot for ur efforts; please share ur views on these companies : Flex Foods Ltd, Shree Hari Chemicals Export Ltd, Shivam Autotech Ltd
Thanks again.
shivan dont track, flex and shree hari already replied on the blog, kindly google it
Sharp fall in Prima today….market didn’t like the result very much.
that’s fine, market behave short term. the stock will rise after this. for me its an opportunity to add
Ace,
Do you think there could be any one time exceptional items like labour settlements, stock liquidation by Prima in the March quarter?
why would there be labour settlements? what kind of stock liquidation are we talking about? anyways, inventory liquidation of ACP division if any would add to the company’s cash position.
I am talking about the ACP division only. Due to closure of the division it’s natural to expect people to get laid off. And during every layoff the company has to settle their accounts-pay their gratuities, leave encashments, bonus etc. Unless they are employed elsewhere in the company that is. And almost always inventory is liquidated at a discount to the cost in a shutdown.
I know the cash position might improve but I am just speaking about p&l a/c here.
most of the inventories have been cleared in the last quarter itself. also labor issues would hardly affect company as the company plans to use existing facitlites for product addition. There would not be any material affect of workers one-time-settlement if any. From now on, the performance will improve dramatically.
Is this still a forum for DHP India? If yes, it seems to be on a “free fall”….. Any specific reasons that you can think of?
this is not a forum but a blog. your free fall has a different meaning, the stock is almost at the levels of recommendation and is not for a horizon of few days. you should know before investing
Thanks for your reply. The fall continues.
I am new to your blog.. But you appear quite famous on other message boards with respect to DHP.
I take liberty to give you an old man’s advice – It takes a long time to build trust. One crack in the glass makes the glass unusable. Make honesty and integrity as pillars to your blog. That will take you a long way to peace within.
If you wish to have a private conversation, let me know your contact number via email and I will call you.
not sure why would you feel otherwise but i am very much at peace with myself as i am true to myself. i dont really care what others think of me. I dont force anyone to buy and that’s it. and your so called old-man’s advice is an old saying which everyone on this planet knows and why would you think i would like to have a private conversation with you or anyone, there’s nothing to hide from the readers here and therefore, you and anyone else should post on the blog for the benefit of others? if you dont like something take your own call. Once again, I am not bothered with what you or anyone else think of me. well wishers like you normally come when a stock is coming down and give me plenty of free advice (which is normally worth the price), same thing happened with wanbury and simmonds. patience paid, especially with wanbury people who researched well, got confidence of taking an averaging call that i gave and are now 10-15% up in green as we speak. The blog is not for punters. if you have already written off DHP in a couple of days then its your call. my views dont change so soon without a change in fundamental. Lets see now…God Bless
Well said SIr. DHP is a zero debt, monopoly and has great chance to sky rocket from these P/E’s, if the commodity is not taking it otherwise. I am confident
right and moreover the ratios do not lie..
Is there a reason why there are such low volumes in DHP ?
do you know what is the equity capital of the company?
ah.. Just 3 crores if i checked it right.. and only 800,000 shares in the market..
Waterbase is operating at its full capacity. In such scenario, how will it increase it sales?
sales increase also come by increasing prices, and ofcourse expansion. but who said its operating at “full” capacity?
Prospectus they had filed with SEBI during right issue in 2013 says this: “The Company today is working to full capacity in its feed mill and has invested in additional
Machinery to enhance its capacity to meet the demands.” But nowhere could I find what is going to be the capacity of additional machinery. You are right about increasing prices. But that can happen to certain level only.
you can mail the CS to know the capacity, but as far as i know they are not running at full capacity though yes, on high capacities. as far as increasing prices are concerned, it can happen to a huge level depending on the supply. ITC is a prime example isnt it…but on a serious note, waterbase as far as i know is not running on full capacity.
Sir, this stock dropped to very low CMP, I got in at 160, as I was the 1st to comment in this series of comments, Should I buy more at 30% below my earlier CMP? or hold on for further correction or just do nothing?
30% down is not good enough for averaging.
HI Sir, I just noticed that promoter holdings in DHP is reduced from 74.94% (Dec2013) to 74.37% (Dec2014). I believe it is not good sign for any stock. However, i would like to know expert opinion from you. Please advise… Thanks, Gopal
that happened a couple of quarters back. why would it be a bad thing because the holding has gone down marginally. for high promoter holding with no pledge its fine until and unless it becomes an all round promoter selling (all the promoters selling). anyways, one should be convinced himself before investing so please take your own call. also a lot of promoters (page, infy, rajoo) do this (i agree though that on face of it its never a bad thing) i beleive this point was also highlighted in the comments of that post.
thanks
It seems DHP is in correction mode right now. It is quoting around Rs 112/- today. is it right time to enter? what is your view
i like it at these levels ofcourse.
Thanks
Please give me your views on Jaipan Industries Ltd?
would not be comfortable at this point
Ace .. i dont catch calls easily due to hectic office schedule .. but this time i did it .. and i did it after checking its fundamentals .. great figures .. a trully growing company. Bought at 140 averaged it at 130 .. now holding at net avg of 135.
I am long in it .. but only wish to ask 2 queries :
1. I can see technically it had an awsome flat movement breakout in Feb 2014 and later completed its advance stage in August. From then it did not fell ( which mostly scripts do when done up with their advance stage). Then it started consolidating at that level and companies with such Fundamentals are expected to give a breakout again. But it .. breakdown. Currently below all MA supports. Since i am very confident with the previous 5 years figures, is it not against the law of investing to ignore Technicals.( I know Ace that a time frame of even 1 month changes the entire scenerio of TA)
2. As we can see it had an awsome F.Y 2013-2014 but the current year interim period results are not standing comparable on yoy basis. Even the current 3 qtrs have fell on qoq basis. Do you have any idea sir/mam as to what could be the possible cause and is there any need to worry.
Could sound silly but trying to learn with time.
thanks and gratitude. 🙂
did you get a chance to read the valuations section where i mentioned why the results were so great for last year?
Yes Sir/Mam.. i read it .. but was asking what could be the possible reason for the remarkable growth in last 2 Q of prev years which could not be sustained now.
the work orders they got in Q2 last year was biggest ever that’s the reason.
Thank you .. and for the query 1 i got reply in warnbury .. that it is not oriented towards technical indicators.. which i may feel temporary too as i had said above .. technicals take only 7-15 days to turnaround .. fundamentals take years.
thanks again and gratitude.
Hello. tx for your good work.
request you yo pls clarify few things from your opening comments: as these could be huge trigger for the stock: thus need more clarity:
“Company is planning to enter newer geographies, which would give a major fillip to the earnings.”
Q. . . whats source of this info? do you know which geographies u mentioned here?
Domestic opportunity still un-explored and in time company would start contesting tenders which . Q. . how could you say that they would stat bidding for tenders, especially when they have been 100% exports all this while. pls enlighten”?
again would open a massive opportunity for the company. One of the most profitable companies in the entire sector.
@ . . .which are other companies in this sector? what sector you would but this into?
thanks again for your good work!
1. the company itself. you can also talk to them, though they would refuse to talk about specific country’s name.
2. there are quite a few small private companies in this sector but none listed.
Stock hit a high today. Went like a rocket in this session, any fresh news or updates sir?
nothing new that i know of, other than the possibilities written in the stock story
Results seem bad and below par, stock battered today. Whats the going on this one, no post on comments of result
wait for the results update. results are batched and updated. yes the results were below par
I feel all commodity realted Stocks are going under the hammer irrespective of the incurring cost
dont think its a commodity related stock