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.
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.
