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.
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.
