DHP India – Update

One could consider averaging DHP India at any further declines. The budget provision of providing 5 cr LPG connections to BPL families could potentially be a good trigger for DHP’s domestic business in the short to medium term. Further the stock is available at very attractive valuations, especially when considered w.r.t a rock solid balance sheet (debt free, high current investments and fixed assets). Remember it’s a small cap, so volatility is part and parcel of such stocks and therefore, question your own conviction before taking a call on this (or any) stock.

God Bless !!!




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88 Responses to DHP India – Update

  1. Jagdish says:

    Is the management guiding for when should tendoring process begin..? Till date performance is not convincing. New geographies have not clicked yet

    • If you are not convinced then dont take any action. This is not a new stock reco and therefore would suggest anyone and everyone to read the comments stock story ARs and even talk to the CS before taking any action. By the way the company has done very well to rediscover itself as a manufacturing company in last 3-4 yrs.

      • Jagdish says:

        Well i meant for ytd performance. So i wanted to know is management saying to participate and shall the tendor process commence. What is the view on domestic business margins as you mentioned that competitors are surprised to see how he makes it. Would they be much lower then the exports.

  2. chetanbansal says:

    DHP does not have a single rupee domestic business! Domestic lpg connections have nothing to do with DHP. It does not make regulators used in India.

    • then you have no idea of what you are talking about. Read the comments and stock story and most importantly read the ARs. Also talk to the CS of how and more importantly “why” they want to get into domestic business and what were they waiting for. God Bless !!!

  3. Vishwanath says:

    Ace – your two finds, Deccan Gold & Rajoo Engg are having a good run and recovering fast. Thanks for the suggestions. Both are in good green for me.

  4. Akshay says:

    thanq for the update

  5. divya says:

    thanks for this. I had sent an email to the CS the day i had heard about LPG connections thing and asked him about his perspective. He told me that this sounds like a good opportunity for him and was looking to bid for most of the contracts that would come in eastern part of india.

  6. Avishek says:

    Hello Ace,
    Please share your opinion regarding Spisys.

  7. Your views on Agarwal Industrial Corporation, Ace?

  8. David says:

    Sir-Your views on Eastern Treads

  9. Park says:

    Dear Ace,
    Your view on Syncom healthcare, is it a takeover candidate?

  10. Aravind says:

    View on Capital Trust and its rural small lending operations and stock price now

  11. HIMANSHU says:


  12. Investologic says:

    Whats your take on MIC electronics at current valuations with the LED industry in India expanding?

  13. Investologic says:

    You mentioned DHP and it shot up with 15% today ! Are you some magician? 🙂

    • its not something to feel proud about i think…remember its just a averaging call

      • Prashant says:

        Dear ACEji,
        thats true !!
        There were many recommendations from our forum who were at mouth watering levels during correction . Some of them infact gave returns of 30-50% , if some one with convictions had taken the position . Ideally investors should keep watch on their bets and take position without waiting for explicit averaging call .

        Anyway thanks for so many fundamentally good stocks you have suggested . Most of them are moving up smartly and giving returns, way above expectations .

        Thanks & Regards,

  14. Rahul says:

    Dear Ace

    Sent a friend request on FB , kindly accept the request


  15. vinod says:

    Dear Ace,

    Your view on PTL Enterprise. Awaiting for demerger news.

    Thank you

  16. Prima touching new highs Ace 🙂

  17. vinod says:

    Dear Ace,

    Thank you for posting average call on DHP.

  18. Rajendra says:

    I still remember the time when Prima Plastics was consolidating around 70 and people were getting restless. You asked everybody to hold on. Prima at 52 week high and going strong :). Thanks and God bless.

  19. OMKAR says:

    —-moderated no caps allowed —

  20. sudershan says:

    sir, whats ur view on edelweiss, allcargo,igpetro and poddar pigments…

  21. Ace, just a quick question on technicals. This is not specific to any stock, but generally. A stock which is breaking out after a long period of consolidation within a range and which has good fundamentals is bound to go higher, right? So, if such a breakout is followed by some extreme capitulation, does the breakout count for nothing? As in, would there be another phase of consolidation before the stock could go higher?

  22. vimal says:

    Hi, ur view on South Indian Bank?

  23. madhu sudan acharya says:

    Do you like Tree house education and accessories ltd?

  24. himanshu says:

    sir your valuable views on windsor machinery ; sakuma exports and goldiam international .

  25. nriadvice says:

    What do you think of current valuations of SMS Pharma and Poly Medicure? I have been holding them for a few years now and would like to switch if better opportunities exist.

  26. Prashant says:

    Dear ACEji,
    I have a basic question on Prima’s expected EPS .
    Till now prima achieved a EPS of 5 in last 3 quarters . So ideally we can expect a EPS of close to 7 for the last one year .
    Do you expect Prima to report eps with drastic change than 7 or so . Since its bit complex considering, JV numbers reporting, closing of ACP division,crude price changes,inventory etc , request your kind guidance here .

    Thanks & Regards,

    • let’s wait for the numbers, no need to speculate. we should now be ready to see the consolidated numbers and that what will matter now…. hopefully we’ll get good earnings growth this year but as i always say, no point in speculation so near to results.

  27. Investologic says:

    Hello Ace
    What do you think of SKM Egg Products at the current stage? I hold some due to the promise it holds, but lately there have been some issues with them and the management has not been very clear in their communication.

  28. vimal says:

    Hi, ur view on Arvind?

  29. sango96 says:

    how is dhanlaxmi fabrics

  30. Teja says:

    Hi Ave, please share your views on borosil glass.
    Note: already searched the blog through Google for the same.

  31. drgsrk says:

    How abt aimco at cmp?

  32. Ace, your next pick would be post Q4 results?

  33. HIMANSHU says:

    Sir any view on ugar sugar ?

  34. Suneetha says:

    Plz share your view on Narmada gelatines. Thanks in advance !

  35. Ace, your views on Aban offshore?

  36. hafizul09 says:

    Ace ji,
    Whats ur view on Shilchar Technologies and Kakatiya cements for long term perspective…Thanks.

  37. sir can i know your views on Jbm auto, keeping in mind that they have entered a new business vertical of premium bus segment, whose first batch of 105 buses will be delivered to NMRC next month

  38. amit says:

    sir ur view on karnataka bank.

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