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.
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.
Brilliant pick.However,Low liquidity & equity base can be good n bad at times!
ReplyDeleteYou have a point.
DeleteHowever remember; when it comes to low liquid stocks;
If you pick the right stock and buy it at a right price, as low as possible, then you have a multibagger on hand.
On the other side if you buy it expensive or when it has already moved up 400 - 500% then you are at risk of loosing your shirt.
It is all about Select right and Buy right.
All the best!
Why its not moving from last 2 days.
ReplyDeleteSir is manapurram still buy at cmp? Or wait for correction.
ReplyDeleteThanks for Sharing Informative News about Stocks Market, Its most Benefit to Every trader.
ReplyDeleteThanks By.Dynamic Money Research
Most welcome, Divya.
DeleteI wish you good profit in the stock market :-)
All the best.