Palred Technologies POTENTIAL MULTIBAGGER STOCK D18M12Y2016

Palred Technologies is a holding company that has two main lines of business. Through Palred Online Technologies, it owns and operates the e-commerce portal called LatestOne dot com. Latest One is a specialized e-tailer that deals mainly in mobile accessories.    
For more info check, http://palred.com/            
To check out the e-com portal, http://www.latestone.com/      

NUMBERS - THE LATEST        
Market cap: 73 crores                    CMP on Day18 Dec2016: Rs 89               BV: 48
Revenue FY16: 38 cr                       Net profit FY16: Nil                                FV: 10         

POSITIVES     
1. Operations of latestone.com seem to have stabilized, with revenue of 10 crore plus for the last 4 quarters
2. Quarterly loss which was in the range of 5 crore per quarter has come down to 2 crore per quarter
3. In December 2016 LatestOne entered fashion accessory category with sunglasses and wallets
4. In November 2016 LatestOne completed registration of 1000 dealers on its B2B portal         

INTERESTING INFO         
1. Palred was earlier known as Four Soft. In October 2013, the company sold its logistics business for around USD 40 million   
2. The company declared and distributed a special dividend of 29 rs. per share to around 20,000 investors. This action demonstrates that the promoter cares about the retail investors.   
3. Equity capital of the company was reduced from 35 crores to around 8 crores. In times when promoters are expanding equity rampantly, here is a company that has reduced equity. This shows that the promoter values the equity of his company.  
4. Founder and MD of the company, Palem Srikanth Reddy has been buying the shares in small chunks through open market transactions since last few months.   

NEGATIVES - POSSIBLE RISKS   
1. Though latest one has gained traction in terms of business and revenue, it is yet to make profits.
2. There is very little information about the other ventures of the company   

MY TAKE     
Years 2013 to 2015 witnessed a massive interest in technology and online ventures, most of them in e-commerce. Billions of dollars from various parts of the world were chasing India focused ventures. Venture Capital chasing ventures was unprecedented. In that backdrop we need to view Palred.   

Here we have an entrepreneur who started and scaled up this specialized niche e-commerce company with approx 30 crores. This is probably one of those rare listed pure play e-com company. Meaning, a company that sells products absolutely the e-way.   

As of now as only the e-com venture latestone.com is operational, let us look at Palred from that prism. If this was like any one of those other venture capital funded companies that are mostly privately held, we could have easily seen 10 - 20 million dollars invested in this company, if not more. When one has easy money, and that too lots of it, there is a tendency to do stupid things. 

Vast majority of the e-com ventures in the indian landscape are either still loss making after sucking millions or have gone bust. Under such circumstances, we have here a listed company that is available for less than 100 crores, while holding cash of 30 crores. Company has narrowed its losses and is on the verge of break-even and could even move into profitability over the next 2 - 3 quarters. This company has real products and paying customers.  

Right now there is only latestone.com; however looking at Srikanth Reddy's past and history, he will most definitely start off another one or two more e-ventures. There is also the technology company that also could be grown and taken to the next level.   

Lastly I remember reading somewhere that Palred promoter admires Amazon and its founder. If he can make Palred even 1% of Amazon, then we have a 10 or even 20 bagger on hand.     

Palred Technologies has tremendous multibagger potential!!  


Disclosure: I own shares in Palred.     


For commercial collaboration, consultation and JV ideas;
                                         you can contact me via zorbayogi9@gmail.com    


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible
to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.    

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.

Pondy Oxides POTENTIAL MULTIBAGGER STOCK D14M11Y2016

Pondy Oxides & Chemicals is the leading secondary lead smelter in India. This south based company produces high quality lead and lead alloys to be supplied to battery and chemical manufacturers.  
For more info check, http://pocl.co.in/   

NUMBERS - THE LATEST   
Market cap: 91 crores                   CMP on Day14 Nov2016: Rs 163              BV: 78
Revenue FY16: 464 cr                   Net profit FY16: 10 cr approx                  FV: 10           

POSITIVES  
1. The company achieved highest turnover and profit for the financial year 2015-16 since its inception
2. Profit after tax registered an impressive growth of 51%
3. Out of total revenue of 464 crores, export revenue was around 136 crores.
4. Great to see that Pondy is an environmentally conscious company. A picture speaks a 1000 words. Greenery on the Annual report is nice to see.   

INTERESTING INFO      
1. Pondy Oxides exports to multiple countries, and has made significant inroads into USA, Thailand and countries in Europe
2. Company has set up a hedging desk with a London based broker to manage its metal price exposure
3. Equity capital of the company is only around 5.5 crore. There are only around 55 lakh shares held by around 8000 share holders
4. Statement on the Pondy Oxides annual report of FY2016 = "You can't change the past but you can change the future, Recycle for a better future"             

NEGATIVES - POSSIBLE RISKS          
1. Company is subject to currency rate fluctuation as it imports substantial part of its raw materials.
2. Raw material availability and commodity price fluctuation is a  risk.  

MY TAKE    
Pondy Oxides & Chemicals is a high quality company. This company is a leading player in smelting and producing secondary lead. The promoters and management have  a commendable experience in this field with a track record of over 2 decades.  

Company has declared exceptional results for Quarter ending September 2016. Revenue at 186 crores is almost up 80% year-on-year. Gross profit of 11 crores is almost 3 times higher y-o-y. Net profit of approx 10 crores for half year is almost equal to full year net profit last year. From current levels, this stock can easily multiply several folds. 

Pondy Oxides is an obvious potential multibagger!!             


Disclosure: I own shares in Pondy.          


For commercial collaboration, consultation and JV ideas;
                                             you can contact me via zorbayogi9@gmail.com     


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.        


Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.

GITANJALI GEMS POTENTIAL MULTIBAGGER STOCK D20M10Y2016

Gitanjali Gems is a leading jewellery player. This company owns some of the marquee brands like Nakshatra, Gili, Asmi, Hoop, Donatella, Kashvi and others. The company also owns international brands like Giantti, Color me Bella, Stefan Hafner and Porrati.      
For more info check, http://gitanjaligroup.com/                      

NUMBERS - THE LATEST        
Market cap: 820 crores               CMP on Day20 Oct2016: Rs 75                     BV: 360
Revenue FY16: 13,900 cr               Net profit FY16: 133 cr                               FV: 10          

POSITIVES          
1. Consolidated profit in Q1FY17 almost increased 3 times to 57 crore from around 19 crore a year earlier, demonstrating the turn-around.        
2. Long term debt has reduced from 750 crore to 520 crore in the last FY. Step in the right direction  
3. Gitanjali operations in India comprise of around 3000 points-of-sale including 200 own stores, 150 franchisees, 675 shop-in-shops and 2000 retailers.      
4. Global operations include 108 stores in the USA and 500 retailers, 4 stores in UAE and 50 SIS, Portfolio of Italian brands for Europe.     
5. After the debacle the company experienced 2 years ago, their TV and media adverts had almost stopped. However recently advertisements in various media has picked up indicating the company's direction.

Positive changes in FY2016 indicating a turn-around       
1. eCommerce sales of the company was over 210 crore through their portal Jewelsouk (recent TV adverts featuring Shraddha Kapoor)  
2. In modern retail (SIS = shop-in-shop) market share of Gitanjali increased from 58% to 72%   
3. Samuels, the American operations of Gitanjali, is the 4th largest speciality retailer in the US, in the worlds largest diamond jewellery market.   
4. Recognizing the dynamics of the market and the demands of the new generation, the company is focusing on fine jewellery from light-weight material and also platinum jewellery.    

INTERESTING INFO   
1. From a low of Rs. 110 in July 2006 Gitanjali stock made a high of Rs. 440 in Jan 2008 (a 4-bagger in less than two years)
2. From a high of 440 in Jan 2008 the stock sold-off to a low of 40 in Mar 2009   
3. Again, from a low of 98 in May 2010 Gitanjali stock made a high of 620 in Apr 2013 (a 6-bagger in less than three years)  
4. Once again, from a high of 620 in Apr 2013 the stock collapsed to a low of 32 in Mar 2016  

Will history repeat? That only time will tell.  
However, people venturing into this stock for sure can have a massive roller coaster ride. As long as you are in the right direction, this could be a profitable opportunity. In the wrong direction, you could loose big time.

NEGATIVES - POSSIBLE RISKS  
1. Clearly Gitanjali stock is volatile. Due to the sharp and massive up-moves and down-moves, this is not for the weak hearted.
2. Short term borrowings of the company is almost around 7500 crores. This could be mainly due to the huge working capital requirements. With new expansion in plans, the company needs to be prudent in managing this aspect of the business.  This could be a big factor in the determining the future of the stock.

MY TAKE   
Shares of Gitanjali being hugely volatile is an understatement. In less than a decade, the company became a multibagger twice only to collapse in a very sharp and brutal manner. So this is a risky stock.  

Having said that, looking at the track record of the business, its scope and potential growth, the company is currently available at a very cheap price. Also, the company is in the middle of a turnaround. If the management can successfully charter the minefields and steer the company in the positive direction, it could well become a multibagger once again.  

It is well placed to become a multibagger the third time around!!          


Disclosure: I own shares in Gitanjali.      


For commercial collaboration, consultation and JV ideas;
                                                  you can contact me via zorbayogi9@gmail.com          


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.   


Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.

Chandra Prabhu POTENTIAL MULTIBAGGER STOCK D23M09Y2016

Chandra Prabhu International is mainly in the business of trading of synthetic rubber and coal. Based in Delhi, this company has offices in Bhatinda, Guwahati, Siliguri and Mughal Sarai. They also have warehouse capacity of around 40,000 sq. ft.     
For more info check, http://cpil.com/         

NUMBERS - THE LATEST           
Market cap: 8.23 crores            CMP on Day23 Sep2016: Rs 22.70           BV: 32.00
Revenue FY16: 49 cr                   Net profit FY16: 4.87 lacs                      FV: 10        

POSITIVES           
1. Company has very low equity capital, only around 3.6 lakh shares. So a net profit of 1 crore results approx in an EPS of almost Rs. 3
2. In the last year promoter holding increased from 60.5% to 62%
3. The growing consumption of coal in power sector offers good opportunities for the company
4. Company owns 2,78,000 shares in Deccan Gold Mines

INTERESTING INFO                     
1. Chandra Prabhu has only around 1600 share holders
2. Company has 2 crore in cash with 1.4 crore in Fixed Deposit. Market cap is 8 crore :-)
3. The company is exploring opportunities in the fertilizer and infrastructure sectors
4. Since last one year the share price of CPIL was hovering between 12 and 14 rs. However in just 10 days now it has moved from 12 to 22 making it almost a 80 - 90% up-move in just 10 days. That is what happens when you buy a low liquid small cap at the right price.  

NEGATIVES - POSSIBLE RISKS        
1. Company has low liquidity. So buying as well as selling will not be easy. The stock can make sharp up-moves and down-moves. So only people with adequate awareness must consider this stock.
2. On a standalone basis company did a profit of 33 lacs in FY16 where as on a consolidated basis it did a profit of around 5 lacs. That indicates that the subsidiary did not do well.  

MY TAKE    

Chandra Prabhu is a company with an annual revenue of 40 - 50 crores with approx 2 crores cash on its balance sheet. At a market cap of 8 crores, the company is definitely undervalued. So taking away the cash on hand, an investor is actually paying only 6 crore for this company.  The market will discover this undervaluation at some point in time, at which point the share price can shoot up. Is that happening now? We will know in another few weeks / months. 

How big a multibagger can this stock become? That will depend on the managements ability to improve the profit margins and sustain their quarterly results in a profitable manner. It will also be interesting to see how their new ventures pan out.       

Chandra Prabhu is a potential multibagger!!     


Disclosure: I own shares in CPIL.    


For commercial collaboration, consultation and JV ideas;
                                               you can contact me via zorbayogi9@gmail.com        


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.  

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.

POEL POTENTIAL MULTIBAGGER STOCK D18M09Y2016

POEL stands for POCL enterprises. This south based company is the result of a demerger of Pondy Oxides. The demerger happened last year and the company subsequently got listed in BSE. The company has its plants in Pondicherry and various locations of Tamil Nadu.  
For more info check, http://poel.in/          

POCL enterprises is a diversified chemicals company. Its various divisions are Metallic oxides, Plastic additives and Alloying & Refining.  

NUMBERS - THE LATEST     
Market cap: 31 crores                 CMP on Day18 Sep2016: Rs 56.15             BV: 29.30
Revenue FY16: 203 cr                   Net profit FY16: 2.11 cr                FV: 10         

POSITIVES        
1. Though the company is yet to complete 2 full years on the stock market, it has already given dividend twice showing that they care for their share holders.
2. During FY2016 the company was able to improve its exports sales from 11 to 20%.
3. During last year company had a capex of 4.4 crores. The results will be visible this year
4. Despite a 25% improvement in topline, management has managed with the same working capital as last year demonstrating their business skills          

INTERESTING INFO      
1. POEL was listed on BSE during June 2015 after demerger from Pondy Oxides & Chemicals. Company has just made its beginning in the markets.
2. Equity capital of the company is only around 5 crore. In other words there are only around 55 lakh shares out of which promoters own approx 50%
3. For a company with 200 crore turnover, its long term debt is less than 2 crores
4. The annual communication from the Chairman is a must-read for the involved investor. It clearly indicates the direction in which the company is heading.          

NEGATIVES - POSSIBLE RISKS   
1. Company has low liquidity. Hence people trying to trade this stock may get hit sharply.
2. Company has significant exposure to forex prices as they import their raw materials. Increase in exports can act as a natural hedge.           

MY TAKE       
In terms of the stock market POCL enterprises is just a baby, a toddler. The company only got listed last year, post its demerger from Pondy Oxides. However the promoters and management of the company are old hands in this business and well experienced and equipped to take this company to great heights.    

The share price has almost doubled from 28 to 56 in the last 6 months. However the journey has just begun. This stock can immensely reward its investors. Share holders who give this stock adequate time and display patience, can well get to see the levels of 100, 200, 300, 400.       

It is just a matter of time. POEL is an obvious potential multibagger!!   


Disclosure: I own shares in POEL.        


For commercial collaboration, consultation and JV ideas;
                                                            you can contact me via zorbayogi9@gmail.com


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.   

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions. 
 

TRIDENT POTENTIAL MULTIBAGGER STOCK D28M08Y2016

Trident is the worlds largest terry towel manufacturer. It is also the worlds largest wheat-straw based paper manufacturer. This Punjab-based company founded by Mr. Rajinder Gupta around two decades ago, recently commissioned its massive unit in Budni, Madhya Pradesh, which is globally the largest standalone terry towels manufacturing facility. After establishing its leadership and firm footprint in terry towels, the company has now ventured ventured into bed linen.   
For more info check, http://www.tridentindia.com/       

NUMBERS - THE LATEST     
Market cap: 2876 crores              CMP on Day28 Aug2016: Rs 56.45            BV: 34.54
Revenue FY16: 3733 cr                Net profit FY16: 228 cr                            FV: 10          

POSITIVES   
1. Trident has a well established global business, with clients across 100 countries. This company clearly thinks big, and is an excellent example of "make in india" recently popularized by PM Narendra Modi 
2. Company has capacity to manufacture 360 million towel pieces and 7.5 million bed sheet sets per annum for the global market.   
3. Paper manufacturing is a significant part of the business. Not only is it profitable, it is also innovative, and generates cash in a stable manner    
4. Company recently incorporated a wholly-owned subsidiary in the UK to strengthen its marketing channels in Europe       

INTERESTING INFO   
1. Trident is a preferred supplier to some of the global retail giants like Walmart, JC Penny, IKEA and Target. It also supplies to large hotels like Taj and Oberoi.   
2. Company has signed Kriti Shanon to endorse its new Bed and Linen collection. The company has brands in various quality and price categories.
3. In the printing paper business, it recently launched 'Trident Digiprint' a premium copier paper of 100 gsm.
4. A picture speaks a 1000 words. In the latest annual report, page 6 shows a picture of the Trident plant. Looks fantastic!      

NEGATIVES - POSSIBLE RISKS  
1. Company has long term borrowing of 2,136 crore. The increase in debt reflects directly in the substantial increase in the gross block of the company. However due to prudent steps, the finance cost has reduced 34% to 136 cr.          

MY TAKE   
Starting small in Punjab around 2 decades back, Trident has transformed from small operations to a formidable mid sized company. During the course of that journey, it has set up large manufacturing operations on a global scale, carved a niche position for itself in the global home textile market.   
During the course of last couple of years, it has expanded its operations with a very substantial capex, entry into new product segments, and a platform for future growth. The company is well placed to move to the next level from a mid sized to a large size company. 
The results were quite evident in the recent quarter financial results. Revenue increased 31% YoY. EBITDA increased 24% and EPS increased 25% (non annualized). Therefore the company is well placed to take off into the next phase of its journey.   

Trident has good future potential to become a multibagger!! 

Disclosure: I own shares in Trident.  

For commercial collaboration, consultation and JV ideas;
                                                        you can contact me via zorbayogi9@gmail.com  


Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.     

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.

MANAPPURAM FINANCE POTENTIAL STOCK D24M07Y2016

An initiative as early as in 1949 in the hinterlands of Kerala by Mr VC Padmanaban to provide financial solutions to farmers and fishermen; Today his son, carrying the legacy forward, Mr VP Nandakumar has transformed Manappuram Finance into a multi-dimensional NBFC with a 20 year track record on BSE, and a mission which started in South India, today has branches all across India.
For more info check, http://manappuram.com/      

NUMBERS - THE LATEST    
Market cap: 6327 crores              CMP on Day24 July2016: Rs 75.20            BV: 35.24  
Revenue FY16: 2373 cr                Net profit FY16: 353 cr                             FV: 2          

POSITIVES  
1. Global gold prices after making a low of USD 1084 per ounce has been making a steady upmove towards USD 1400
2. Negative impact due to uncertain regulations towards gold loans and negative perceptions are a thing of the past. Positive outcome of that was the LTV (loan-to-value) of 75% which enhances the risk management   
3. New businesses of Manappuram contribute to 12% of their AUM (assets under management), and are well headed towards 25%  
4. Net profit shot up almost 100% from 69 cr in Q4FY15 to 124 cr in Q4FY16.  

INTERESTING INFO   
1. Microfinance AUM (acquired company Asirvad Finance) shot up from 300 crore to almost 1000 crores in approx one year
2. People of India are unique in terms of their love for gold. Manappuram holds 59.6 tonnes of gold assets
3. Manappuram has pioneered the concept of online gold loans. After evaluation, people can store their gold in vaults, and can access loans online 
4. Manappuram has popular actors as their brand ambassadors thereby enhancing their brand-recall. Mohan Lal, Venkatesh, Vikram, Akshay Kumar, Puneet Rajkumar and others     

NEGATIVES - POSSIBLE RISKS   
1. Slowdown in global gold prices could act as a sentiment negative, though the company has taken steps to reduce negative impact of gold price fluctuation.  
2. Global market turmoil or negative surprises from China or Europe OR increase in US Fed rates

MY TAKE
Manappuram Finance has already established itself as a leading gold loans financing company over the last decade. With a single line of business, the company has grown its profits from less than 10 crores to 350 crores in approximately 10 years.  

Year 2015 was an inflection year for the company, to move to the next level. The company has successfully moved into 3 adjacent areas of business areas, being Microfinance, home loans and commercial vehicle financing.   

If the company can repeat what it did with gold loans, in the Microfinance business, this can be a NBFC behemoth over the next 5 year. From the current AUM of approx 12,000 crore moving towards AUM of 20,000 crores, even 25,000 CR looks quite achievable. Compared to other players in this field, this company with great future prospects, is available at reasonable valuations.   

Company has future potential to become a multibagger!!   


Disclosure: I own shares in Manappuram.   


For consultation, commercial collaboration and JV ideas;
                                    you can contact me via zorbayogi9@gmail.com    

Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.  

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.

EMMBI INDUSTRIES POTENTIAL STOCK D26M01Y2016

Starting out with just one small polymer extrusion plant, today Emmbi Industries has grown to one of the India's largest specialty polymer processing company. In a journey of 2 decades, the company has transformed from a small operation with less than 10 members to a company that has over 180 customers in around 50 countries across the world. 
For more info check, http://www.wovensackindia.com/  

NUMBERS - THE LATEST   
Market cap: 124 crores              CMP on Day26 Jan2016: Rs 70.20            BV: 35.86
Revenue FY15: 192 cr                Net profit FY15: 6 CR                                   FV: 10   

POSITIVES   
1. Stable and consistent revenue growth over a decade.
                                 FY2005 (10 cr), FY2010 (51 crore) and FY2015 190 CR 
2. The company has a fully equipped manufacturing facility that is spread over 200,000 sq feet on a 7-acre campus. The location is in the union territory of Dadra and Nagar Haveli which is at a near distance from some of the ports.
3. Visible profit growth over a decade.
                                FY2005 (33 lakhs cr), FY2010 (1.7 crore) and FY2015 5.9 CR
4. The company is equipped with state-of-the-art machines for Extrusion, Weaving, Webbing, Liner development, coating, printing, packing and coding. 

INTERESTING INFO 
1. Last year, Emmbi's exports crossed a billion rupees, that is, 100 crores. They expect to maintain double digit export growth over the next 3 years. 
2. With a track record of adding new products and customers, the company has forayed into water conservation business, which is working out well.  
3. At the time of IPO in 2010, the company sourced capital to invest in a production facility of 17,800 MT with an intention of revenues of 200 crore. Today the company has capacity of 18,200 MT, with potential to take the revenue to 300 crores.  
4. Emmbi produces around 600,000 FIBCs per month. They have both standard and specialty.

NEGATIVES - POSSIBLE RISKS  
1. Over all market volatility and bearish sentiment driven by uncertainty in China and global slowdown.


MY TAKE  
Emmbi Industries is a high quality company with commendable founders with an excellent track record. This is an innovator company with a wide range of products catering to diverse sectors across various countries. As they understand the pulse of the market and their customer needs, the management has proven to come up with new products from time to time. 

Along with improving the product mix and customer base, the management has also reduced debts in a gradual manner. Reading their latest annual reports, customer brochure, it is evident that the company has good plans for the future, and an ability to execute them successfully. At present the company is operating at 70% capacity. Increase capacity will improve profit margins, and hence net profits.  

At a market cap of 124 crores, this company with great future prospects, is available cheap.   

An excellent potential multibagger!!  


Disclosure: I own shares in Emmbi Industries.   


For consultation(commercial) and JV ideas; 
                        you can contact me via zorbayogi9@gmail.com      

Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW. 

Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.